Lundbeckfonden Sustainability Report 2024

Sustainability Report 2024

Section 99a of the Danish Financial Statements Act

This report represents the statutory consolidated statement of the Lundbeck Foundation on corporate social responsibility (CSR) in accordance with section 99a of the Danish Financial Statements Act The report includes the Management Review and Sustainability Statement of the Annual Reports for 2024 of H. Lundbeck A/S and Falck and the Management Review of ALK Abelló A/S – each of which outlines company-specific policies, activities and results for 2024

Key 2024 Figures

+19 million patients reached through the Group

~34,000 jobs sustained through the Group

+5,000DKKm spent on R&D through the Group

1,074DKKm in grants to research & activities by the Lundbeck Foundation

Commitment to society

The purpose of the Lundbeck Foundation is to create powerful ripple effects that bring discoveries to lives through investing actively in business and science at the frontiers of their fields. This report presents how sustainability is embedded in the Foundation’s purpose, strategy, business model and activities.

With the Foundation’s 2030 strategy, Bringing Discoveries to Lives’, the Foundation articulated five value flags for a clear commitment to making a positive and sustainable impact on society. The strategy is aligned with SDG 3, 8, 9 and 16 and aims to drive sustainable outcomes in health, innovation, economic growth and good governance.

Sustainability is viewed both as a responsibility and a license to operate - now and in the future - as well as an opportunity to drive long-term value creation.

Top-tier neuroscience

We create value when we fund Danish-based research that results in a better understanding of the brain and better prevention, diagnosis and treatment of brain diseases.

Close collaboration between research and business

We create value when we invest in research talents, entrepreneurs and innovation in Danish healthcare, and when we strengthen the collaboration between universities, hospitals and companies in Denmark.

Active public voice

We create value when we develop and internationalise Danish healthcare research and business culture, and when we improve society's understanding of the brain and its diseases.

Attractive financial returns

We create value when our return on investment enables us to increase our grants to society and secures our long-term financial robustness and growth.

Leading healthcare companies

We create value when we as a competent and engaged owner, develop and grow healthcare companies to become international market leaders within their categories.

The Lundbeck Foundation’s strategy is aligned with four SDGs

The Foundation’s philanthropic and commercial activities, developing top-tier neuroscience and leading healthcare companies, supports SDG 3especially sub-target 3.4 regarding treatment of noncommunicable diseases and mental health.

As part of its engaged ownership and responsible asset management, the Foundation contributes to SDG 8 through the sub-targets 8.1 - GDP growthand 8.5 - Decent work for all men and women.

Long-term ownerships, biotech investments and support for collaboration in research are key components of the Foundation’s impact on society and have a clear link to SDG 9 and sub-target 9.5 of encouraging innovation and research development.

The footprint of the Lundbeck Foundation is primarily defined by the companies it owns, the investments it makes, and the recipients of its grants. The basis for promoting sustainable development is good governance in line with SDG 16, contributing to effective, accountable and inclusive organisations.

The Lundbeck Foundation’s business model

The Lundbeck Foundation is a Danish enterprise foundation with DKK 71bn in assets under management. The Foundation has a broad scope of activities, and its societal impacts, risks and opportunities seen through all its activities.

Strategic Ownerships

The Lundbeck Foundation is a long-term owner of multiple healthcare companies headquartered in Denmark. Our ambition is to position and maintain the companies as international market leaders within their industry segment. Business ownership is a key element of the Foundation's financial and societal value creation and of building the route to market for new treatments and therapies for patients all over the world.

Financial investments ensure long-term financial stability and robustness, and allows the Foundation to invest in the future of healthcare and support new scientific research. The Foundation's biotech investments contribute to financial value creation while also developing people and businesses in the Danish life science ecosystem.

Partner to Society

The Foundation channels profits back to society through grants and partnerships, which are anchored in the Foundation’s purpose of 'Bringing discoveries to lives'. Our strategic ambition is to improve the world's understanding of the brain and create better treatments of brain disorders while also developing the Danish life science ecosystem through advancing and enhancing the conditions for science, innovation and economic growth in Denmark.

Activity: Strategic ownerships

As a business owner in the healthcare sector, the Lundbeck Foundation impacts economic growth, innovation and job creation in Denmark and in other geographies. This ownership role entails a responsibility to ensure that the companies assess and report on their sustainability impacts, risks and opportunities, and address these through policies, actions and targets.

Responsible growth and job creation

Engaged ownership is the core of the Foundation’s contribution to its healthcare companies. The goal is to position and maintain the companies as international market leaders within their industry segments, including a strong focus on sustainability.

Governance: Engaged ownership

Sustainability is an important pillar of the Foundation’s engaged ownership model, and the Foundation encourages its ownerships to assess, evaluate and report on relevant sustainability measures and initiatives. The Foundation uses its board representation to advance sustainability agendas and expects its ownerships to live up to the minimum standards that are defined in the Foundation’s Sustainability Policy.

Developments in the strategic ownerships

In 2024, the Lundbeck Foundation joined T&W Medical’s majority ownership of WS Audiology, adding the global hearing aid company to its strategic ownerships. The Foundation is now co-owner with significant minority stakes in Ferrosan Medical Devices, Ellab and WS Audiology, and holds majority ownership of its three subsidiaries H. Lundbeck A/S ALK Abelló A/S and Falck. Please refer to the Management Review and Sustainability Statement of the Annual Reports 2024 for the three subsidiaries from page 16 for detailed descriptions of their business models, governance and sustainability efforts.

In 2024, the environmental targets of the six strategic ownerships are all approved by or in alignment with the Science Based Targets initiative.

The Corporate Sustainability Reporting Directive (CSRD) requires companies to identify, assess and report on material sustainability areas. H. Lundbeck A/S and ALK Abelló A/S have reported according to CSRD for 2024, while the other companies are preparing to report under the CSRD for 2025.

The Enterprise Foundation Model Research indicates that companies with enterprise foundation ownership achieve higher environmental, social and governance (ESG) performance, maintain ESG activities even during financial crises, and commit to more significant emission reductions in the post-Paris Agreement period.

The Foundation works to advance the Danish enterprise foundation model as part of its public outreach. Enterprise foundations have a long history of value creation in Danish life science, and the Lundbeck Foundation is committed to protecting and developing this ownership model for the benefit of Denmark’s life science industry and society as a whole.

Subsidiaries by the numbers in 2024

Activity: Asset management

The Foundation’s asset management has a dual purpose. Firstly, the Foundation’s financial investment activities ensure the financial robustness to pursue the Foundation’s purpose and strategy. Secondly, the Foundation’s biotech investments advance Denmark’s life science ecosystem while also delivering a strong and competitive financial return.

Investments as a financial engine

The Foundation’s value creation relies on its financial assets, which enable the commercial and philanthropic activities. Financial returns allow the Foundation to support its business ownerships while also investing in new science and innovation, even in times of crisis.

Governance: A responsible financial investor

As a diversified financial investor, the Foundation pursues a strategy of investing in high quality companies across different sectors to generate longterm return without compromising strong near-term risk management. All financial investments must comply with the Foundation’s Sustainability Policy and Investment Policy, which are reviewed and approved by the Board of the Foundation on an annual basis.

Investment decisions and recommendations are also reviewed by the Board’s Investment Committee, which supervises the Foundation’s activities in accordance with the Investment Policy.

As defined in the Foundation’s Investment Policy, the Foundation does not invest in certain sectors, such as the tobacco industry. The investment portfolio is screened twice a year to ensure compliance with international ethical standards. Assets that are flagged as high risk in the external screening process undergo a separate due diligence process which is signed off by the Foundation’s CEO.

Biotech investments

Supporting the local life science ecosystem while also delivering a competitive financial return is at the core of the Foundation’s biotech investments through Lundbeckfonden BioCapital. Through new investments and its existing portfolio of 21 international and Danish biotech companies, the Foundation advances health innovation through commercial and sustainable businesses with the aspiration of pushing the boundaries of the current level of insights and knowledge and identifying the health solutions of tomorrow.

Governance: An active biotech investor and owner

The Foundation identifies companies and teams with a strong scientific platform and commercial potential that can solve unmet medical needs. Solving future patient needs requires excellent science, robust business models and sustainable practices.

The Foundation’s investment takes place after an indepth due diligence assessment of the science, team and business model that also involves relevant ESG considerations. Each investment is accompanied by the Foundation’s involvement in the company. This usually involves a board seat, which allows the Foundation to advance and guide strategy, operations and policies and to build up sustainable priorities and practices in the portfolio companies.

Execution on the Sustainability Programme

In 2024, Lundbeckfonden BioCapital started to execute on its Sustainability Programme. In line with the overall principle for the Foundation the programme builds on a two-pronged approach. Sustainability is both a responsibilityand license to operate – now and in the future – as well as an opportunityas a long-term value driver.

Opportunity: Building high performing teams

How can investors best help their early-stage companies to ensure that they grow strongly and sustainably into the future? In 2024, the Foundation initiated the Fit for Growth pilot, a recruitment and company building programme aimed at supporting and guiding early-stage biotech companies in developing high-performing teams. The pilot focused on how early-stage companies, operating in a cash and time constrained environment, can intentionally design a more diverse workforce and leadership team that is fit for future growth Through a short series of workshops with three of our portfolio companies, the initiative provided tangible, practical advice and concrete tools. The aim is to implement learnings from this more widely across the portfolio in the coming years.

Responsibility: Aligning material reporting requirements

The Foundation works to align sustainability reporting requirements for early-stage biotech companies through the ‘Life Sciences ESG Knowledge Project’, a collaborative effort among 23 leading life science venture investors. The initiative aims to make sustainability reporting as relevant and efficient as possible for early-stage biotech companies, enabling them to meet key responsibility expectations and regulatory requirements without undue burden.

Activity: Partner to Society

The Foundation channels profits back to society through grants, partnerships and societal activities which are anchored in the purpose of ‘Bringing discoveries to lives’. This includes investing in scientists and their pursuit of new discoveries, disseminating knowledge and discoveries to those who need them, and strengthening Denmark’s life science ecosystem through innovation and economic growth. The Foundation is also committed to using its public voice to deepen the understanding of the brain and strengthen research conditions and the Danish life science ecosystem.

The Commitment to Brain Health

Brain diseases have profound socio-economic impacts for society at large and severe personal consequences for patients and relatives across the world More than 3 billion people are estimated to be affected by brain diseases worldwide. To provide new treatments scientists, practitioners and general society require better knowledge about the brain and its diseases.

The Foundation supports scientific research with a specific commitment to the brain. The Foundation

Case: Lundbeck Foundation Parkinson's Disease Research Center (PACE)

The Foundation’s ambition is to make Denmark a frontrunner in the field of neuroscience. The Foundation funds Danish-based research that promotes an improved understanding of the brain as well as better prevention, diagnosis, and treatment of brain disorders.

In 2024, the Foundation launched its first large strategic initiative to strengthen the integration of basic and clinical research. The Foundation awarded DKK 223m to the Lundbeck Foundation Parkinson's Disease Research Center (PACE) at Aarhus University Hospital with Professor Per Borghammer as leader of the multidisciplinary NeuroHub

The NeuroHub is the first of several larger strategic initiatives to bring discoveries to lives. The initiative supports a multidisciplinary research environment to strengthen the collaboration between basic and clinical research, aiming at better prevention, diagnosis and treatment of brain diseases.

supports projects across basic, clinical applied and epidemiological research activities. In 2024, the Foundation surpassed its 2030 ambition of DKK 1bn in annual grants with a total of DKK 1,074m awarded. This is an increase of DKK 482m compared to 2023. Of this total of DKK 1,074m, 88% was committed to neuroscience research across all levels. The increase in the grant sum primarily reflects the Foundation’s execution on its strategic initiatives such as the Lundbeck Foundation Parkinson's Disease Research Center (PACE) at Aarhus University Hospital and Neuroscience Academy Denmark (see cases on page 9 and 10).

The Foundation not only supports research within brain health but also uses its public outreach to deepen the understanding of brain health and its consequences as one of the Foundation s three main agendas. See for instance the “Hjernerapporten 2.0” case to the right

Accountability, transparency, and integrity

In its grant activities, the Foundation is committed to integrity, transparency and accountability. The Foundation wants to support the best scientific research that can shape positive outcomes and push the frontiers of our knowledge. Best practices, such as the Danish Code of Conduct for Research Integrity, as well as environmental, social and governance considerations, are integrated into the Foundation’s grant processes.

The Foundation handles and evaluates applications via an application assessment process. Evaluations include

peer reviews by international third-party expert panels who operate in compliance with the Foundation’s principles of impartiality. For this purpose, the Foundation has established four permanent evaluation panels with independent experts.

The Foundation’s public voice is planned and conducted with strong attention to principles of transparency, accountability and integrity, and is shared publicly on the Foundation’s website: https://lundbeckfonden.com/about-us/socialresponsibility-and-transparency/recommendations-onfoundation-governance-corporate.

A responsible public voice

The Foundation engages in a variety of activities spanning communication, partnerships and public affairs across its entire value chain to pursue three main agendas:

- Advance the Danish enterprise foundation model

- Deepen the understanding of the brain and develop better treatments for brain disorders

- Strengthen science, research conditions and the Danish life science ecosystem

Case: Hjernerapporten 2.0 (The Brain Report 2.0)

Brain diseases have far-reaching societal and personal consequences for people around the world. Brain diseases are costly for patients, relatives and society – both socially and economically. However, brain health and brain diseases remain an under-prioritised disease area in Denmark and in many other countries. The Foundation works to improve the public understanding of the brain and brain disorders.

Raising public awareness about the importance of brain health requires accessible and relevant knowledge. To this end, the Foundation updated its “Hjernerapporten 2.0” in 2024, resulting in an expanded version of the original 2021 report. The updated report sheds light on the individual and societal impact of brain disease. For instance, the study behind the updated report shows that 1 in 3 Danish citizens are either diagnosed with or receive prescription medicine for brain disease The study estimates the indirect cost of brain diseases to be equivalent to 8% of Denmark’s gross domestic product (GDP).

The updated report provides a solid data-driven basis for the public debate around brain disease and its consequences. This contributes to both the Foundation’s and patient organisations’ efforts to drive the dialogue on the importance of brain health and to focus on brain diseases.

Case: Neuroscience Academy Denmark

The Lundbeck Foundation works to improve the academic understanding of the brain. One of the initiatives is Neuroscience Academy Denmark, a PhD programme and research network started in 2021. The aim of the Academy is to educate the neuroscientists of the future and motivate networking and collaboration between neuroscience research groups in Denmark.

The Academy’s PhD programme adds an initial year with rotations between Danish neuroresearch laboratories, enhancing the neuroscience PhD level by creating a unique learning, development and research environment in Denmark. The programme’s cross-university activities strengthen the coherence of Danish neuroscience research activities as well as motivating national collaboration between neuroscience research groups in Denmark.

Since the start of the PhD programme, a group of 48 PhD students has been recruited. In 2024, the Lundbeck Foundation awarded the Neuroscience Academy an additional grant of DKK 222m. This allows the Academy to double the size of the existing group of PhD students over the next three years.

Disseminating knowledge and discoveries

Bringing discoveries to lives requires new knowledge as well as the continuous sharing of existing knowledge to those who need it: clinicians, healthcare professionals, patients and relatives, companies, public authorities, etc. In 2024, the Foundation continued its efforts to share existing knowledge and new scientific insights about the brain to a broader audience in Denmark and globally.

Supporting collaboration between research and business

Healthcare innovation requires collaboration between the scientific research community and the commercial business world. This is seen in the world’s most innovative healthcare communities, where talents can make the leap from science to business and back again. In today’s world, companies and innovative entrepreneurs shape the route from scientific labs to patients, which requires a profound understanding of multiple sectors as well as a strong commitment to entrepreneurship and business building.

As one of the three main agendas for its public outreach, the Foundation thus focuses on research conditions and strengthening Denmark’s life science ecosystem. The Foundation engages in this agenda through its public affairs, communication and partnerships activities.

To further facilitate the scientific transition from basic research project to commercially viable products and companies that can bring the discoveries to lives, the

Foundation has set up Frontier Grants Frontier Grants aim to mature research projects to become attractive prospects for biotech investors. In 2024, four Frontier Grants totalling DKK 20m were awarded to scientists working on a new obesity drug, gene therapy, treatment of pancreatic cancer and stem cell therapy for Parkinson’s disease.

A global outreach

In 2024, the Foundation’s online platform, Neurotorium - which provides curated free educational material on neurology and mental diseases intended for clinicians and educators – attracted more than 450,000 visits from a total of 189 countries only two years after its launch in 2022 and up from 180,000 visits across 181 countries in 2023. The top 5 countries per number of users were the US Ethiopia, India, Turkey and the UK

Celebrating neuroscience

The Foundation has many activities focused on the need to bring knowledge and awareness of brain health to the wider society. This includes the world’s largest prize for brain researchers, ‘The Brain Prize’, which is awarded annually to scientists who have made groundbreaking discoveries in brain research. The award is followed by an extensive outreach programme, where the winners share their science with global audiences.

Sustainability at the Lundbeck Foundation

Governance principles

Good governance is critical for the effective integration of sustainability into the business decisions of the Foundation. The Foundation’s governance model has been developed over many years and is based on four principles:

• Compliance with Denmark’s national Recommendations on Foundation Governance and on Corporate Governance ensures clear guidelines for the Foundation’s operations.

• The principle of independence guides the composition of the Foundation’s governing bodies, including board composition, scientific evaluations, etc.

• Annual accounts, key policies and governance documents are developed to comply with the principle of transparency, and the Foundation’s eight policies are shared publicly and can be accessed on the Foundation’s website: https://lundbeckfonden.com/about-us/socialresponsibility-and-transparency/policies

• The decision-making processes in the Foundation’s organisation are defined and reflect the principle of checks and balances

Sustainability Governance

The Foundation’s Board of Directors endorses the Foundation’s sustainability policies, priorities and progress. The CEO is responsible for the Foundation’s sustainability work and ensures that ESG is integrated into strategy, management and business model. The Management Team reviews implementation and follows up on progress. The Sustainability Steering Group is responsible for advancing the sustainability agenda and programme, manages key priorities and sustainability initiatives, tracks progress and reports to the CEO. Workstream Leads lead and drive sustainability initiatives in their departments. In addition, the Foundation works to integrate and update ESG measures according to the latest developments in the core process for each of its activities.

The Lundbeck Foundation’s Sustainability Policy

The Foundation’s work on all sustainability areas follows the guiding principles defined in its Sustainability Policy. The policy articulates the expectations and guiding principles for the Foundation’s employees, its grant recipients, investments and ownerships. It also encourages partners and stakeholders, including the strategic ownerships and investments, to pursue sustainability agendas that can live up to the minimum standards set out in the policy.

The Sustainability Policy is reviewed and approved by the Board of Directors annually. The policy is publicly accessible on the foundation’s website: https://lundbeckfonden.com/about-us/socialresponsibility-and-transparency/policies

Whistleblower system

The Foundation has a whistleblower system that provides employees, partners and stakeholders with a secure and confidential channel to flag and raise concerns, including legal and other serious risks In 2024, no reports were made via the whistleblower system.

Data ethics

In response to the Danish Financial Statements Act section 99d, the Data Ethics Policy for the Lundbeck Foundation (including Lundbeckfond Invest A/S) has been developed and approved by the Board of Directors. It is based on five principles:

• Human interests before commercial interest

Data utilised should ultimately have a human benefit. If there is a conflict between human and commercial interests, human interests should always prevail.

• Transparency.

Data uses should be clear or easily explained. When personal data is utilised, the legitimate reason for doing so should be made clear, or properly informed consent should be obtained from all involved.

• Anonymisation

Data should be anonymised or pseudonymised unless personalisation is a requirement for achieving the targeted results.

• Autonomy

The Foundation believes that individuals should have control over the use of their data. Further, the Foundation does not use automated decision-making

or artificial intelligence on data either provided or collected.

• Accountability and governance

Accountability is an integral part of responsible data use, and the Foundation goes to great lengths to reduce the risks for the individual and to mitigate undesirable social and ethical implications.

The Foundation endeavours to integrate data ethics into all its daily management and business decisions, including when acting as stakeholder in other concerns. Even with effective standards, policies and processes in place, data usage has the potential to lead to challenges, problems and errors. The Foundation seeks to prevent this by developing a positive culture among employees that promotes openness and encourages the continuous improvement of processes and systems.

Subsidiaries

For further information about the Data Ethics Policy, please see page 51 of H. Lundbeck A/S’ Annual Report 2024, page 32 of ALK Abelló A/S Annual Report 2024 and page 30 of Falck’s Annual Report 2024.

Initiatives in 2024 for the Foundation

In 2024, the Foundation conducted a double materiality assessment based on its business model as both an investor and a long-term owner. This assessment enabled the Foundation to identify key impacts, risks and opportunities from a sustainability perspective. These insights will shape the Foundation’s sustainability priorities, policies actions and targets moving forward.

The Foundation is now preparing to collect material data points throughout 2025 to ensure it can report in accordance with the Corporate Sustainability Reporting Directive (CSRD).

In 2024, emissions from unavoidable flights related to the Foundation’s international activities amounted to 332 tonnes of CO2. To offset these emissions, the Foundation purchases high-quality carbon credits. While carbon offsetting is not a comprehensive solution, it complements ongoing efforts to establish measurable and concrete emission reduction targets, which will be further developed in 2025.

ESG figures for the Lundbeck Foundation

The Foundation’s climate impact is primarily driven by scope 3 activities. The approach to handling scope 3 emissions will be further developed based on the results of the double materiality assessment carried out in 2024, which will be reflected in the 2025 reporting.

Diversity at the Lundbeck Foundation

In 2024, the Foundation’s Board of Directors comprised seven board members, who are elected based on the Foundation’s status. In 2024, six of the seven board members were considered independent. The seven board members counted one woman and six men, excluding the four employee representatives who represent the Foundation’s three subsidiaries.

The gender balance is not in accordance with the guidelines on gender equality issued by the Danish Business Authority (‘Guidelines on target figures, policies and reporting on the gender composition of management’) and adjusting the gender balance of the Board of Directors is therefore a priority going forward.

When electing new members to the Board of Directors, the Board strives to ensure diversity in competencies as well as gender. The board will continue to pursue equal representation in the coming elections.

In the short term, the Board of Directors strives towards complying with the guidelines. Currently, the board expects this target will be realised by 2027.

At 31 December 2024, the Management Team of the Lundbeck Foundation was comprised of six members, including the CEO, and counts one woman and five men. One female management member has stepped down but will be replaced by a person of the same gender in 2025, and the Management Team will then be comprised of two women and five men. The Lundbeck Foundation’s employee group counts 27 women out of a total of 56. Diversity and inclusion will remain focus areas for the Foundation in the years to come.

1 These key ESG figures are based on recommendations by the Chartered Financial Analysts’ (CFA) Society Denmark, the Association of Danish Auditors (FSR), and Nasdaq Copenhagen. They represent a first step in a process that, over the coming years, will enable the Foundation to provide stakeholders with further insights into the Foundation’s ESG profile by setting targets.

Definitions of calculations

Reporting period

All reported data cover a full-year period (1 January to 31 December 2024) for the Foundation (Lundbeckfonden and Lundbeckfond Invest A/S). The calculations have been applied consistently for all the years presented. All KPIs reported in the Sustainability Report are gathered and aligned with the timeline for the annual reporting of the financial data.

Data quality

We are committed to collecting the most accurate data. Nevertheless, it is not always possible to gain a fully aligned register of data, and estimations are sometimes necessary.

Environmental data

CO2e Scope 2

Includes all indirect emissions related to the generation of acquired and consumed electricity and district heating. All consumed energy information is provided by suppliers as specific meter readings or invoices.

Energy consumption

Consumed energy is monitored by building-specific meter readings.

Renewable energy share

Share of renewable energy generated by solar panels is monitored by building-specific meter reading.

Water

consumption

Water consumption is monitored by building-specific meter readings. Accounting period is 1st October 2023 to 31st September 2024.

Social data

Workforce

The workforce is calculated using the FTE method, which consists of the total amount of ATP reported to the Danish Tax Authorities divided by the standard ATP rate for a full-time employee (FTE) per year.

Gender diversity, percentage of women in the workforce

Includes all permanent employees hired and paid directly by the Foundation. Gender is assigned as female or male. Gender diversity reported as female share of total workforce.

Gender diversity, percentage of women in the Management Team

Includes all women in the Management Team. Gender is assigned as female or male. Gender diversity in the Management Team is reported as female share of total Management Team.

Gender pay ratio of men to women

Includes all permanent employees hired and paid directly by the Foundation. Gender is assigned as female or male. Gender pay ratio is calculated as the median of paid salary to male employees divided by the median of paid salary to female employees.

Employee turnover ratio

Includes all permanent employees hired and paid directly by the Foundation. Employee turnover ratio is calculated for both voluntarily and involuntarily departing employees.

Absence due to sickness

Includes all permanent employees hired and paid directly by the Foundation. Absence due to sickness is calculated as the number of full days of sickness for all employees divided by the total number of FTEs. Maternity leave is not included.

Governance data

Gender diversity, Board of Directors

The gender diversity of the Board of Directors is calculated as the total number of women elected divided by the total number of members of the Board of Directors for the Foundation. Gender is assigned as male or female.

Board meeting attendance rate

The board meeting attendance rate is calculated as the number of board meetings that each board member attends, divided by the total number of board meetings during the year.

A specific overview of each board member’s attendance during 2024 is presented in the Annual Report of the Foundation on page 44

CEO pay ratio

Total CEO remuneration divided by the median of the Foundation’s employee remuneration.

AnnualReport 2024

GaoLei,livingwithmigraine

H.LundbeckA/S

Advancing brainhealth. Transforminglives.

Patientperspective 20yearsonpainkillers

GaoLei,aged42,livesinBeijinginChina.Shegraduatedinmedicineand worksasabrandmanageratacompanywheresheisresponsiblefororganizingandhostingconferences.Sheisamotherandamigrainepatient formorethan20years.

“Tomycolleagues,Iamknownformyfocusand dedicationtowork.However,fewpeopleknowthat Ihavebeensufferingfrommigraineformorethan 20years.”

GaoLeirecallstheveryfirsttimeshewasattacked byaheadache.Itwasduringhersenioryearofhigh school.

“Duringtheintensepreparationforthecollegeentranceexams,Isuddenlyfeltdizzy,asiftheworld wasspinning,anditwasaccompaniedbyaparticularlysevereheadache.Atthattime,Ithoughtitwas justduetothestressandfatiguefromstudying. Afterlyinginbedforabout1or2hours,thesymptomsgraduallyeased,soIdidn'tthinkmuch ofit.”

Later,asamedicalstudent,GaoLeisstudieswere extremelydemanding,withnumerousexamstopreparefor.Theheadachescontinuedtoplagueher, causingimmensesufferingduringhergraduate studiesandlater,whenshestartedhercareerand settleddownwithafamily.

A10-year-latediagnosis

Manypeopleattributeheadachestoexcessivestress orfatigue,leadingtodelayedtreatment.

“Afterenduringnearlyadecadeoftormentandgainingaccesstoprofessionalknowledgethroughmy medicalstudies,Iwasfinallydiagnosedwithmigraineinaspecializedhospital.”

GaoLei livingwithmigraine

Afterbeingdiagnosedwithmigraine,GaoLei exploredvarioustreatmentoptionsandtrieddifferentpainkillers,buttheresultswerelessthansatisfactory.

Hercopingmechanismbecameamixofpainkillers andaquietspacetoalleviatethepain.Thisreliance onpainkillerscontinuedforanother10years.

Preventivemigrainetreatment

Twoyearsago,GaoLeilearnedaboutaclinicaltrial ofamonoclonalantibodymedicationformigraine andappliedtojoin.Itisamigrainepreventivetreatmentthatisinjected,andsheunderwentthistreatmentforaboutninemonthswithverygoodoutcomes.

Previously,shehadfrequentheadacheattacksand sheoftenneededtousepainkillersformorethan10 dayseachmonth.Afterthetreatment,shehadno significantattacksexceptforfourorfivedaysbefore andafterhermenstrualperiod.

Theunbearableheadachesweregone.

“Inthepast,painkillersweremylife-savingmedication.Now,afterpreventivetreatment,mymigraine symptomshavebeengreatlyrelieved,andIhave graduallyresumednormalworkandlife.Ihopethat thosewhosufferfrommigrainelikeme acknowledgeandfacethedisease,andbelievethat withimproveddiagnosisandtreatment,wecanbetterliveourlives.”

Ihopethatsocietycangiveus moreunderstanding,tolerance, andsupport,andrecognizethe effortsweputintotransform ourlives.

Mirza,caregiverofAlzheimer’sdiseasepatient

Sustainabilitykeyfigures

Shareofemployeeswhocompleted theannuale-learningonourCodeof Conduct,comparedto99.9%in2023.

Keyeventsof2024

February

CEOCharlvanZylannouncedthecompositionofLundbeck’snewexecutivemanagementteam.

March

Thepotentialfirst-in-classtherapyformigrainepreventionenteredanadvanced clinicalstagewithaclinicalphaseIIb dose-findingtrial.ThePROCEEDtrialwill assesstheefficacyandsafetyofsubcutaneouslyadministeredLuAG09222inmigraineprevention.

June

Presentationofaninnovativefirst-in-humantrialdesignofthemonoclonalantibodyLuAG13909forthepotentialtreatmentofcongenitaladrenalhyperplasia (CAH)araredebilitatingdiseasewithexcessmorbidityandmortality.

ThephaseIbtrialusingLuAG13909asa potentialtreatmentforCushing’sdisease wasinitiated.LuAG13909isafirst-inclassmonoclonalantibody(mAb)that

targetstheadrenocorticotropichormone (ACTH).BybindingtoACTHwithhighaffinity,LuAG13909aimstoreduceelevatedACTHlevels,potentiallyproviding therapeuticbenefitsforindividualswith neurohormonaldysfunctions.

LundbeckandOtsukaannouncedFDAacceptanceofsNDAfilingforbrexpiprazole incombinationwithsertralineforthe treatmentofadultswithpost-traumatic stressdisorder(PTSD). FDAplanstohost aPsychopharmacologicDrugsAdvisory Committeeanticipatedduringthefirst halfof2025.Ifapproved,thebrexpiprazoleandsertralinecombinationtreatmentwillbethefirstFDA-approvedpharmacologicaltreatmentforPTSDinmore than20years.

September

LundbeckandIambicTherapeutics,a clinical-stagebiotechnologycompanydevelopingnoveltherapeuticsusingits uniqueAI-drivendiscoveryplatform,enteredastrategicresearchcollaboration

tofocusonthediscoveryofasmallmoleculetherapeuticforthetreatmentofmigraine.

October

TheclinicaltrialforLuAG22515inThyroidEyeDiseasewasinitiated,takingone furtherstepindevelopingtreatmentsfor indicationsintheneuroimmunologyand neuroinflammatoryspacewiththeinitiationofthefirstclinicaltrialofitsCD40L blocker,LuAG22515,inpatients.

TheproposedacquisitionofLongboard Pharmaceuticalswasannounced.The strategicdealwillenhanceLundbeck’s neurosciencepipelineandrepresenta significantstepforwardintheFocused InnovatorStrategy,addingahighlyinnovativeandcomplementaryproductin late-stagedevelopmentforDevelopmentalandEpilepticEncephalopathies(DEEs) -anareaofhighunmetmedicalneed.

Lundbeckannouncedpositiveresults fromthephaseIIIpivotaltrial(SUNRISE)

ofVyepti® (eptinezumab),confirmingefficacyandmeetingtheprimaryendpoint withstatisticallysignificantreductionsin meanmonthlymigrainedayscompared withplacebo.Vyepti® alsometallkeysecondaryefficacyendpointsintheSUNRISE trial,andthetreatmentwasgenerally well-tolerated.

November

LundbecklaunchedMASCOT,aphaseIII trialtoassesstheefficacyandsafetyof amlenetuginthetreatmentofMultiple SystemAtrophy(MSA).MASCOTisarandomized,double-blindtrial,andbuildson theencouragingresultsoftheAMULET phaseIItrial,showingaconsistenttrend towardsamlenetugslowingclinicalprogressioninMSApatients.

December

LundbeckcompletedthepreviouslyannouncedtransactiontoacquireLongboardPharmaceuticalsthatsubsequently becameawhollyownedsubsidiaryof Lundbeck.Theacquisitionenhancesand

complementsLundbeck’scapabilitiesand presencewithinneuro-rareconditions, andtheleadasset,bexicaserin,holds blockbusterpotential.InJanuary2025, Lundbeckannouncedpositiveresults fromthe12-monthopen-labelextension ofthePACIFICtrialevaluatingbexicaserininparticipantswithDevelopmentalandEpilepticEncephalopathies.The treatmentwithbexicaserindemonstrated favorablesafetyandtolerability,andbexicaserinachievedanoverallmedianseizurereductionincountablemotorseizuresof59.3percent.

TheRESOLUTIONtrialdemonstratedthe efficacyofVyepti®inpatientswithadual diagnosisofchronicmigraineandmedication-overuseheadache.Withtheplacebo-controlledphaseIVtrial,Lundbeck foundthatthepatientsrapidlybenefitted fromthetreatmentwithVyepti® .

LetterfromtheChairandCEO

AtransformativeyearforLundbeck

Asoneoffewpharmaceuticalcompaniessolelyfocusingonbrainhealth, theworlddependsonLundbeckmorethanever.Neurologicalconditions aretheleadingcauseofdisabilityandsecondleadingcauseofdeath,globally,affecting3.4billionpeople1 andaccountingfornearly19milliondeaths peryear2 .

Weareproudtoadvancebrainhealth,and2024has beenatransformativeyearlayingthefoundationfor apromisingfutureforLundbeckandforthepatients weserve.

Ourcontributiontothefightagainstbraindisorders isaccesstohealthforthosewhoneedourtreatments.Wearepatient-drivenineverythingwedo. Ourresearchanddevelopmenteffortspursueclear biologyanddefinedpatientpopulationstocreate maximumimpact.Wepromoteequitableaccessibility,enhanceculturalacceptabilityofmentaldisorders,andweprovideefficaciousmedicalproducts.

In2024,ourpeopleexcelledingeneratingthehighestrevenueeverrecorded,notablywhilefurther strengtheningourpipelineofinnovativeandpromisinglate-stageassets.Lundbeckcontinuestodeliver solidgrowth,drivenbythestrongperformanceof ourstrategicbrands.

Weseeagrowingneurosciencemarketandexpectit tocontinueatan8%annualgrowthrate.IntheU.S. andEurope,neuroscienceisinthetopthreefornew drugapprovals.Addingrapidlyevolvingscienceand technologiesthatwillfuelourinnovationatanew pace,andarangeofnewdrugmodalitieswhichwill expandourtreatmentopportunities,weseeavery

promisingfutureaheadofus,patients,peopleand society.

Towardssustainableprofitability

Atthebeginningof2024,welaunchedourFocused InnovatorStrategywhichwilldrivelong-termsustainablegrowthforLundbeck.

Thestrategyanswersthreefundamentalquestions: Howwegrowwithourbasebusiness,howwecontinuetostrengthenourpipeline,andhowweallocatecapitaltofundourgrowthambitions.Weare gratefultoseethatthechoiceswehavemadeare generatingverypositiveresultsanddrivingthefuturetransformationofourcompany.

Entering2025,westandonastrongfoundationof strategicbrandsthatreacheddouble-digitgrowth rates.Weexpectourstrategicbrandstocontinueto maximizegrowthinto2027,drivenprimarilybyinvestmentsinourkeymarketsandbrandsglobally, includingVyepti® andRexulti® intheU.S.Thegrowth

willbridgetheupcominglossofexclusivityonBrintellix®/Trintellix® bytheendof2026intheU.S.and 2025inCanada,andthelossofexclusivityonRexulti® bytheendofthedecade.

Treatmentsadvancingbrainhealth

Lundbeckmarketstreatmentsthattransformthe livesofpeoplelivingwithpsychiatricorneurological diseases.Globally,migraineisthethirdmostcommondiseaseandismoreprevalentthandiabetes, epilepsy,andasthmacombined.

Ourpreventivetreatmentofmigraineinadults, Vyepti®,hasalreadybeenlaunchedin31markets worldwidereducingthenumberofmigrainedays. Wecontinuetheroll-outexpandingintonewmarkets,andweexpectVyepti® totriplesalesinthe comingyears,helpingpeoplesufferingfrommigrainearoundtheglobe.

Inthefieldofdepression,280millionpeopleworldwidelivewiththislife-devastatingdisease3 .

Twoofourstrategicbrands,Brintellix® andRexulti® , areindicatedforthetreatmentofmajordepressive disorder(MDD)andhavemadeahugedifferenceto peopleovertheyears.

Rexulti® wasfirstmarketedin2015,indicatedforadjunctivetherapyforthetreatmentofMDDandschizophrenia.The2023expansionintheU.S.ofindicationsforRexulti® inAADAD,agitationassociatedwith dementiaduetoAlzheimer’sdisease–presentsa significantgrowthopportunity.WeseethatAADAD nowcontributesto19%ofdemandforRexulti® in theU.S.,andweassumethatthiswillcontinuewith expectedpeaksalesofUSD1billion.

Likewise,weexpecttheAbilifyAsimtufii® 2-monthinjectionforthetreatmentofschizophreniaandbipolarIdisorderinadultstobeanewlaunchthatwould minimizedisruptiontopatientssufferingfromthese chronicdiseasesavoidingthemonthlyadministration.

Whilebuildingonour70-yearlongexperiencein psychiatryandneurology,weareincreasingour strategicfocusonneuro-specialtyandneuro-rare diseaseareas.

Promisingpipeline

SustainablefinancialgrowthwilldependonourcapacitytoimproveproductivityinR&D.Alongside substantialinvestments,effectivechangestoour R&Dprocesseshavecreatedenthusiasmacrossthe R&Ddepartmentasweimplementanapproachof ‘listen-to-the-biology and‘killyourdarlingsinphase I’.Now,weadvanceotherpotentialmoleculesorindicationsifonedoesnotproveitselfinphaseI,and wehaveatransformedpipelineofassetstargeting newbiology.90%ofourdevelopmentpipelineisin neuro-rareandneuro-specialty,anditdemonstrates significantpotentialinadvancingtreatmentsinareaswithhighunmetneeds.Ourlate-stageprojects arepromisingwithemergingscientificdevelopments,andweaimtohavefourphaseIIIprograms by2026.

Wewanttotakethisopportunitytothank Lundbeck’semployees.Theirhardworkand dedicationaretransformingthelivesofpeople livingwithbraindisorders.

Subsequently,weexpecttobefilinganewtherapy formigrainepreventionandthefirstdisease-modifyingtherapyinMultiSystemAtrophy(MSA).Adding ournewlyacquiredbexicaserininDevelopmental andEpilepticEncephalopathies(DEEs)andanupcomingnewmolecularentityinCushing’sdisease andCongenitalAdrenalHyperplasiawearewellunderwayestablishinganeuro-rarefranchise.

Lookingatourearlypipeline,wehavede-riskedour developmentactivitiesthroughinnovativewaysof working,e.g.,byusingnewbiomarkers.

Wewouldliketotakethisopportunitytothankour R&Dcolleaguesfortheiractivesupportintransformingandstrengtheningourdevelopmentactivities, positioningustobebestsuitedtodeliverinnovative solutionsinthefieldofneuroscience.

Asustainablefuture

AtLundbeck,sustainabilityrefersnotonlytoour growthasacompany,butalsotowardsourcommitmentstostakeholders,society,andtheenvironment.Ourmostimportantcontributiontosustainabledevelopmentiseasingtheglobalburdenfor thoselivingwithneurologicalandpsychiatricdiseases,makingaccesstohealthacoreelementofour sustainabilitystrategy.

In2024,ourtreatmentsreached7.2millionfull-year patients1,andwehavecontinuedtodonateproducts andfundpsychosocialsupporttolow-andmiddleincomecountriesandthoseaffectedbywarandcivil unrest.Thisyear,Lundbeckalsolaunchedaglobal platformtoprovidemedicaleducationtohealthcare professionals.

Lundbeckreliesonattractingandretainingaskilled anddiverseworkforce,andwevalueadiverse,equitable,andinclusiveworkplace.Tous,thisincludesa commitmenttobeaneurodiverseworkplace.In 2024,weintegratedthiscommitmentintothe LundbeckbehaviorsthataresupportingourFocused InnovatorStrategy.Company-widetrainingisin place,aimingatensuringthatallemployeesfeelfree tosharetheirperspectives.Inthecomingyears,this trainingwillexpandtoincludeinitiativesondifferent subjectssuchasbiasreduction.

WehavealsocontinuedworkingtowardsLundbeck’s environmentalgoals,actingandmakinginvestments aswesetoutinourclimatetransitionplantowards net-zero.Amajormilestonethisyearhasbeenthe startofconstructionofanewchemicalrecoveryunit atoneofoursites.

2024alsomarksthefirstyearthatLundbeckpresentsanintegratedannualreportwithextensive sustainabilitydisclosuresinaccordancewiththeEuropeanCorporateSustainabilityReportingDirective. WefullysupporttheEuropeanGreenDealandbelievethatsustainabilityfrontrunnerslikeLundbeck benefitfromthenewrequirements.Despiteitsimperfections,thenewregulationsacceleratemuch neededtransparencyandcomparabilitywithinESG reporting.

Continuousbusinessimprovement

In2024,webeganthelargestcapitalreallocation programinthecompany’shistory.Itwillallowusto optimizeourbusinessandfundourgrowthambitions.Weinvestinmaximizingourstrategicbrands inspecificmarkets,furtherboostingourpipeline, andinmodifyingouroperationalmodelsinboththe commercialfunctionandProduction&Supply.We alsoenvisagetargeteddivestmentstosourcecapital forinvestments.

Whilebuildingonour70-yearlongexperiencein psychiatryandneurology,weareincreasingour strategicfocusonneuro-specialityandneuro-rare diseaseareas.

Behindthisexcellent2024executionofourFocused InnovatorStrategyliesatrulyamazingteameffort byourdedicatedpeople,alongwithdisciplineddecision-makingintheareaswherewewillengage,as muchastheareaswherewewillnot.Settingthedirectionandleadingthewaytobecomingafocused innovatorisapriorityforthenewmanagement team.

TheExecutiveManagementteamwasinplacebyAugust2024withnewcolleaguesheadingPeople& Culture,CorporateCommunications&PublicAffairs,

CharlvanZyl PresidentandCEO

CommercialOperations,andCommercial&CorporateStrategy.EachindividualmemberoftheExecutiveManagementbringsvastinternationalexperience,andwejoinforcesasateam,unifiedinpromotingasenseofsharedownership.

Wewanttotakethisopportunitytothank Lundbeck’semployees.Theirhardworkanddedicationaretransformingthelivesofpeoplelivingwith braindisorders.Wethankeveryoneforsupporting theexcellentexecutionofourobjectivesandforcontinuingtoinnovatetoadvancebrainhealth.

LarsSørenRasmussen ChairoftheBoardofDirectors

Strategyupdate

Impactingpatients,people,andsociety

In2024,welaunchedtheFocusedInnovatorStrategyinsupportofourpurposetoadvancebrainhealthandtransformlivesbyaimingtosecuremidtermgrowth,leadwithfocusedinnovation,anddeliveronsustainableprofitability.WiththeacquisitionofLongboardPharmaceuticals,wehavesignificantlyenhancedourneurosciencepipeline.

During2024,welaunchedtheFocusedInnovator Strategy,whichwillhelpuswininneuro-rareand specialist-treateddiseaseareas.Thestrategyaddressesthreemainactionpoints:

• Securingmid-termgrowth:Westandonastrong foundationofstrategicbrandsthathavereached double-digitgrowthrates.

• Leadingwithfocusedinnovation:Wecontinued ourtransformationofR&Dbuildinganinnovative pipelinescalingourpositioninneuro-specialty andestablishinganeuro-rarefranchise.

• Deliveringsustainableprofitability:Wehaveput continualeffortsintoreallocatingfinancesandresourcestoensurefocusedinnovationandlongtermgrowth.

Investingtogrow

Throughout2024,wehadadisciplinedfocuson maximizingourexistingresourcesthroughinvestments.Thiswayweimprovedourprofitability,while investingmoreinR&Dandourkeybrands,i.e.,the launchesofRexulti® inagitationassociatedwithdementiainAlzheimer’sdisease(AADAD)andVyepti® inmigraineprevention.

Weaimtoestablishsolutionsforpatientsthatprovidedifferentiationoverthestandardofcare,and weconstantlyevaluateourstrategicchoicesasto wheretoinvestourcapitaltoachieveourlong-term goals.

Lookingatourglobalpresence,wehavehighlyspecializedemployeesinmorethan50countries.They marketourstrategicbrands,whichaccountfor75% ofourrevenue.In2024,theydeliveredverystrong results,withgrowthexceedingexpectations.

Tomaximizegrowthmovingforwardwhileensuring thatwemeetpatients’needs,wewillbefocusinginvestmentsintokeygrowthmarkets.Wedosotooffsetlossofexclusivitiesinsomepsychiatrydiseaseareasbytheendofthedecade.

IntheU.S.,wehavebeenboostinginvestmentsin Rexulti® andVyepti® andwitnessedaverysuccessful accelerationofthesetwogrowthengineswithsales ofstrategicbrandsupby23%.Inparallel,weagreed withTakedaPharmaceuticalthatby1January2025 wemovefromaco-promotion,cost-sharing,and revenue-sharingmodeltoaroyalty-basedmodelof themarketingofTrintellix®.Thishasenabledusto allocatemoreresourcesandfocusonthemarketing ofRexulti® andVyepti® .

InEuropeandInternationalOperations,wehavedecidedtomodifyourorganizationalstructuretocreatenewregionalunits,whereindividualmarketsare groupedaccordingtomarketcharacteristics,size, andgeography.

Thisway,weensurethatwehavetherightsetup andcapabilitiesforamorefocusedandspecialty-orientedapproachacrossourmarkets.Inparallel,this focusonoptimizationwillalsobeappliedtotherest ofourorganization.

Wecontinuedto advancebrainhealth, impactingpatients, people,

andsociety.

Buildingourinnovativepipeline

Neuroscienceisattheforefrontofscientificbreakthroughswithrapidtechnological,medicalandregulatoryadvancesdrivingthedevelopmentofnew treatments.

Lundbeckisastronginnovation-andscience-ledorganization.Ourcorestrengthsinneurologyandpsychiatryhavebeendevelopedoverthepast70years andareevidencedbythemorethan30treatments wehavelaunchedtodate,improvingthelivesofmillionsofpeoplelivingwithbraindisorders.Aswecontinuetoadvancebrainhealthandtransformlives, weareexpandingourfocustoincludeneuro-rare andneuro-specialtyconditionscharacterizedbyhigh unmetneeds.

InOctober2024,weannouncedtheacquisitionof LongboardPhamaceuticals,andweclosedthedeal inDecember2024.ThephaseIIIbexicaserininDevelopmentalandEpilepticEncephalopathies(DEEs)is theanchorassetandanimportantadditiontoour amlenetugprogram,whereLu82422–apotential firstdisease-modifyingtherapyinMSA–isprogressingtophaseIII.Longboardisaperfectstrategicfit tooureffortsinbuildingarobustneuro-rarefranchise,anditwillleverageourglobalexpertiseinepilepsyamongbothourR&Dscientistsandcolleagues inCommercial.

Wehaveatransformedpipelineofassetstargeting newbiologies.Wehavede-riskedourearlydevelopmentefforts,andduringthelastcoupleofyears,we haveprogressedtwoprogramstophaseII,amlenetugandAnti-PACAPinmigraineprevention.We areaimingforfourphaseIIIprogramsby2026,addingamlenetug,Anti-PACAPandAnti-ACTHinCushing’sdiseaseandCongenitalAdrenalHyperplasiato ournewlyacquiredassetinDEEs,bexicaserin.

Advancingbrainhealthand sustainability

In2024,wecontinuedtomakestridesinadvancing brainhealth,impactingpatients,people,andsociety. Oureffortsarecloselylinkedtooursustainability strategy,whereaccesstohealthiscore,including takingactionthroughawarenessbuilding,advocacy, andfightingstigma.

In2024,Lundbeckcontinuedits‘Letthepatient speak’eventstointegratepatients’perspectivesinto ourdevelopmentprograms.Weinvitepatientsand caregiverstosharetheirinsights,aidingLundbeckin innovationandevidencegeneration.Wealsocollaboratewithpartnerstogaindeeperinsightintounmetpatientneeds,andworktofurtherenhancethe diversityofourclinicaltrials.

Tomaximizegrowthmoving forwardwhileensuringthatwe meetpatients’needs,wewillbe focusinginvestmentsinto keygrowthmarkets.

Thisyear,ourtreatmentsreachedmorethanseven millionpeopleworldwide1 .Improvingaccessto healthholdstheopportunityofmakingLundbeck’s medicalinnovationsaccessibletomorepatientswho needthem.Wehavedefinedlong-termaspirations tomakeinnovativetreatmentavailablethrough R&D,promoteequitableaccessibility,enhanceculturalacceptability,andprovideefficaciousmedical products.

Webelievethatthiswillenhancehealthoutcomes andimprovethequalityoflifeforpatients.Itwill alsoimprovetheproductivityofpeoplesuffering fromneurologicalandpsychiatricconditions,addressingtheUNSustainableDevelopmentGoals (SDG)of“GoodHealthandWellbeingforall”.

Inadditiontoaccesstohealth,Lundbeckalsorecognizestheimportanceofdoingrightbyourpeople, minimizingimpactsontheenvironment,andconductingourbusinessethically.Wecontinuouslywork tomaintainacultureofrespectandsafeworking conditionsforbothemployees,valuechainpartners andpatients.The100%completionrateofourannuale-learningonourCodeofConductisatestamenttothis.

In2024,Lundbeckcontinuedtoworktowardsour climateandcircularityaspirations,includingcontinuouslyexpandingthecollaborationwithsupplierson thechallengingtaskofloweringourcollectiveclimatefootprint.Thisyear,wehavestartedtheconstructionofanewchemicalrecoveryunitatoneof

oursites.Thiswillbothincreaserecyclingratesand reduceourgreenhousegasemissionswhenitbecomesoperationalfollowingtheexpectedcompletionofitsconstructioninlate2025.

Wearecommittedtointegratingsustainablepracticesthroughoutouroperations,drivingbothshorttermactionsandlong-termaspirationstowardsa sustainablefuture.

Cultureasanenablerof transformation

AtLundbeck,ourcultureisrootedinalegacyof commitmenttopositivelyimpactingpeople,patients,andsociety.Globally,ouremployeesfeela strongconnectiontoourpurpose,whichenhances collaborationacrossourorganization.Ourpeople areourgreatestasset,drivingourpurposeforward.

In2024,culture,whichispartofthefoundationof ourFocusedInnovatorStrategy,wasidentifiedasan importantenablerofthetransformationtoensure success.Withthat,anewpeoplestrategywasintroducedaimedatcultivatingaculturethatattractsand retainstalentwhileexpandingourcapabilities,e.g., withinAIandsustainability.

Ourstrategyisbuiltonthreeessentialbehaviors:

• Curiosity:Encouragingexplorationandchallengingthestatusquotofostercreativityandinnovation.

• Adaptability:Nurturingcross-functionalcollaborationtoembracechangeandenhanceproblemsolving.

• Accountability:Prioritizingourpatientsandensuringouractionsalignwithourmissiontomakea positivesocietalimpact.

Asweembracethesebehaviors,westrengthenour cultureandcommitmenttoadvancingbrainhealth andtransforminglives.Together,weleadtheway forabrighterfutureasaFocusedInnovator.

Patients

Oursingularpurposeistofulfilthelarge unmetmedicalneedandbringhopetoindividualslivingwithbraindisordersenabling themtolivetheirbestlives.

People

Withbetterpatienttreatmentweeasethe burdenonfamiliesandrelativeswhoareoftenaffected,notonlyemotionally,butalso financiallyrelatedtomedicalcare,caregivingresponsibilitiesetc.

Society

Bybringingforwardtransformativetreatmentstopatients,wepositivelyimpactthe personal,medicalandeconomicburdenon societycausedbybraindisorders.

ForfurtherinformationonourSustainabilityStrategy,pleaseseepage62.

Businessmodelandvaluechain

AtLundbeck,wediscover,develop,andcommercializetreatmentsthatmakeadifference topeopleaffectedbypsychiatricandneurologicaldisorders.

Wecoverthefullvaluechain

Wehavemorethan70yearsofexperiencein neuroscienceandinimprovingthelivesofpeople withbraindisorders.

• Weresearchtobuildastrongpipelineconsistingofpromisingmoleculesandantibodies.

• Wedevelopourdrugcandidatesintonewmedicines.

• Wemanufacturemedicinesathighlyadvancedproductionsitesand continuetosupplyourdrugstopatientsinneed.

• Wemakeourmedicinesavailablethroughhealthcaresystemsin morethan100countries.

Wefocusourinnovationwithin psychiatryandneurology

Weareoneofthefewbiopharmaceutical companiesintheworldworkingexclusivelywithin neuroscience.

• Psychiatrycoverspsychoticdisorderslikeschizophrenia,moodand anxietydisorderslikedepression,bipolardisorder,and post-traumaticstressdisorder.

• Neurologycoversdisorderslikemigraine,dementia,andmovement disorderslikeParkinson’sdisease,epilepsy,andmultiplesystematrophy(MSA).

• Neuroscienceisanexcitinggrowingareawithlargeunmetmedical needs.Weseegrowthandrapidlyevolvingtechnologiesandmethodologies.

Weensurepositiveoutcomestopeople andsocieties

Everywhereweoperate,westrivetocreatelongtermvalueandmakeapositivecontributionto peopleandsocieties.

• +7millionpatientsaroundtheworldarehelpedbyourmedicines daily2

• Wereinvestaround20%ofourrevenueinR&Dtocontinueourdevelopmentofnew,innovativedrugs.

• Throughoutourvaluechain,weincorporatepatientinsightsbytalkingtoandlearningfromthosewithlivedexperiences.

• Wecreateshareholdervalueensuringsustainableandprofitable growth.

Wearearound5,600highlyspecializedemployees across+50countries1 . *

Weworkinpartnershipstofightstigmaand addressthelargeunmetmedicalneeds.

Weacttoimprovehealthequityforthepatientswe serveandthecommunitieswearepartof.

Input1

Lundbeckworkswitharangeofdifferentstakeholderssourcingsuppliesandservices:

• Energyandrawmaterialstoproducemedicines.

• Researchorganizationstoconductclinicalstudies andestablishevidencefornewdrugcandidates.

• Medicinesproducedbycontractmanufacturersand partners.

• Keyopinionleaderse.g.,healthcareprofessionals.*

Transformation1

LundbeckisheadquarteredinDenmarkand operatesinover50countries,covering:

• Research&Development.

• Production&Supply.

• Marketing&Sales.

• Businessenablingfunctions,suchasCorporate Functions,People&Culture,CorporateCommunications&PublicAffairs.*

Outputandoutcome2

Lundbeck’smainoutcomeisourimpacton patients,people,andsociety,covering:

• Valuebasedtreatmentoptionsforhealthcaresystems.

• Improvementofhealthoutcomesforpatients.

• Profitabilitytoshareholders.

• ReinvestmentintoR&D.

• Jobsandskillsdevelopmentforemployees.

• Taxcontributionstosocietieswearepartof.*

Ourkeystakeholders3

PatientsareanintegralpartofLundbeck’sfullvaluechain ecosystemandfundamentaltoourpatient-centricgo-to-marketapproach.Theirlivedexperiencesandabilitytopointto unmetmedicalneedsenableustodrivefocusedinnovation acrossallaspectsofourbusiness.*

Whilepatientsaretheend-usersofourpharmaceuticalproducts,Lundbeck’scustomersarehealthcareprofessionals (HCPs),includingphysiciansandspecialists,aswellasauthorities,suchasregulatorybodies,andpublicandprivate healthcareproviders.Ourcustomersplayanimportantrole acrossourvaluechain,whereHCPsarethepointofcontact withpatientsinthedownstreamvaluechain,andtheauthoritiesareregulatingouraccesstothemarket.*

Operatinginahighlyregulatedindustry,Lundbeckhas strongproceduresandinternalprocessesinplacetoensure compliancewithpharmaceuticalregulations,achieveoperationalexcellenceandinstilltrustacrossourvaluechain.*

Leveragingourkeypartnershipsacrossthevaluechain,includingR&D,commercialandothertypesofpartnerships, e.g.,civilsocietyandNGOsenablesLundbecktodriveour business,increaseawarenessandensuresocietalimpact.*

Asalistedcompanywithmanyinvestorsandshareholders, Lundbeckiscommittedtocommunicatingaconsistentmessageanddeliveringsustainablegrowth.*

Topursueallthesegoalsandservepeopleaffectedbybrain disordersandsocietyatlarge,Lundbeckreliesonhighlyqualifiedandspecializedemployees.Furthermore,suppliersand theworkersinthevaluechainarekeytoprovidingthefundamentalinputstoproduceLundbeck’shigh-qualityproducts.*

Formoreinformationonourstakeholderengagement, pleaserefertoourSustainabilityStatement(seepage72).

Lundbeck’sproductsareregisteredinmorethan80countries,and wehaveemployeesinmorethan50countries.Ourlargestmarkets aretheU.S.,China,Canada,Spain,Italy,France,Brazil,Australia, SouthKoreaandSwitzerland.*

Products

Strategicbrands

AbilifyLAIfranchise1,2*

AbilifyMaintena® (aripiprazoleoncemonthly)hasbeenmarketedsince2013asamonthlyintramuscularinjectionindicatedforthetreatmentofschizophreniaandbipolarIdisorderinadults.

AbilifyAsimtufii® (aripiprazoleeverytwomonths)was launchedasanintramuscularinjectionevery twomonthsin theU.Sin2023.InMarch2024,theEuropeanCommission approvedAbilifyMaintena® 960mg.Theproductislaunched eitheraloneorincollaborationwithOtsukaPharmaceutical.

Brintellix®/Trintellix®1* (vortioxetine)

Indicatedforthetreatmentofmajordepressivedisorder (MDD)LundbeckmarketsBrintellix®/Trintellix® inEuropeand InternationalOperations.Takedaisourco-promotionpartnerintheU.S.andJapan.Launchedinthefirstmarketsin 2014,itisnowavailableinapproximately60countries.

Rexulti®/Rxulti®1* (brexpiprazole)

Indicatedforadjunctivetherapyforthetreatmentofadults withMDDandasatreatmentforadultswithschizophrenia. In2023,itwasfurtherapprovedforthetreatmentofagitationassociatedwithdementiaduetoAlzheimer'sdisease. LaunchedintheU.S.in2015incollaborationwithOtsuka Pharmaceutical,andsubsequentlyinseveralothercountries.

Vyepti®1* (eptinezumab)

Indicatedforthepreventivetreatmentofmigraineinadults. LundbeckmarketsVyepti® acrossall3regionsintheU.S.,EU andInternationalOperations.LaunchedintheU.S.atthe beginningof2020,itisnowavailablein24countriesacross theworld.

3,504

Maturebrands

Cipralex®/Lexapro®1* (escitalopram)

Indicatedforthetreatmentofdepression.Firstlaunchedin 2002,andisnowavailableincloseto100countriesaround theworld.

Revenue(DKKm)

2,048 Otherpharmaceuticals1*

Northera® (symptomaticneurogenicorthostatichypotension(nOH)),Onfi®(epilepsy),Sabril® (refractorycomplexpartialseizures(rCPS)andinfantilespasms(IS)),Ebixa® (dementia),Azilect® (Parkinson’sdisease),Xenazine® (chorea), Deanxit® (depression),Cipramil® (depressionandanxiety), andCisordinol® (psychosis)areamongthebiggestofour othermaturebrands.

Revenue(DKKm)

3,180

Scienceandinnovation

Drivinginnovationofnewtreatments

In2024,wecontinuedtobuildourpipelineonrigorousdevelopmentprocesses,combiningourstrongcompetenciesandnewtechnologieswithdisciplinedselectionandprogressioninourinnovativeprogramsthatcombine internalinnovationandexternalpartners’research.

ExecutingtheR&Dstrategy

Lundbeckisdedicatedtoneuroscience.Wehavethe heritage,expertise,andpassiontotranslateleading scienceintotransformativetreatments.Opportunitiestomakeadifferencearehuge:Theunmetneeds ofpatientsareenormous,andthenumberofaffectedpeopleisrising.Atthesametime,neuroscienceisattheforefrontofscientificbreakthroughs, withrapidtechnological,medical,andregulatoryadvanceswhichdriveinnovationofnewtreatments.

WiththeFocusedInnovatorStrategy,wehavefurthernarrowedourfocus.Lundbeckhasafoundationalstrengthinpsychiatryandneurology,andwe builduponthiscore.Wereinforceourneuro-specialtyposition,andweestablishaneuro-rarefranchise.

Wearesuccessfullyprogressingourpipeline througharigorousdevelopmentprocessdefining howweoperatebylettingthebiology,themolecule, andthepatientspeak.

OurR&Dorganizationfocussesonpromisingbiology,andweworkwithinnovativediscoveryresearch usinge.g.,CLiPrandBloodBrainBarriershuttle.All inall,thisapproachallowsustode-riskourearlydevelopmentefforts.Inaddition,wearede-riskingthe earlypipelinebyhavinganadequatenumberof phaseIprograms.Likethis,wecanbringpromising projectsquicklyforwardtoearlyclinicalproofofconcept,andweinvitepatientstoguideusinthelate developmentphaseonourwayfromunmetneeds totransformativetreatments.

Withtechnologyexpandingthetargetlandscapeand newdrugmodalitiesincreasingtreatmentopportunities,theuseofnewbiomarkers,andaregulatory evolutionthatacceleratestheapprovalsinneuroscience,weleadwithfocusedinnovation.Overthepast year,wecontinuedtobuildourpipelineastheengineforsustainablegrowth.

InJanuary2024,Lundbeck’sAMULETphaseIItrial withamlenetug(LuAF82422)showedconvincing trendsofslowingMultipleSystemAtroph(MSA). Lundbeckiscommittedtoaddressingtheunmet needsofMSApatientswithamlenetugandhasprogressedtheprogramindialoguewithhealthauthorities.

InMarch2024,Lundbeck’spotentialfirst-in-class therapyformigraineprevention,theLuAG09222 (anti-PACAPmAb)program,enteredanadvanced clinicalstagewithaclinicalphaseIIbdose-finding trial.Thistrialwillassesstheefficacyandsafetyof subcutaneouslyadministeredLuAG09222in

Fourbiologicalclusters

Throughpursuitofnoveltargetswithin4biological clusters,Lundbeckadvancesinnovativesolutions toareasofsignificantunmetmedicalneedswithin neuroscience.

Thefourbiologyclustersare:

Hormonal/neuropeptidesignaling:

Targetingselectedpathwaysofpainsignaling, stressandotherneurohormonalresponses.

Circuitry/neuronalbiology:

Targetingneurotransmission/synaptic dysfunctiontorestorebraincircuitsandreduceneurological,psychiatric,andpainsymptoms.

Neuroinflammation/neuroimmunology:

Targetingneuronallossduetoanoveractiveimmunesystem,relevantacrossmany nicheandrare neurologicaldisorders.

Proteinaggregation,foldingandclearance:

Targetingneurodegenerativeproteinopathiesinvolvedinarangeofneurodegenerativeconditions, e.g.,Alzheimer’sdementiaandParkinson’sdisease, aswellasrarediseasescharacterizedbyproteinopathy,suchasmultiplesystematrophy(MSA).

Readmoreonthefollowingpages.

migrainepreventionaimingtoestablishtheoptimal doseforfutureglobalpivotaltrials.

InJune2024,LundbeckinitiatedafirsttrialwithLu AG13909inpatientswithCushing’sdisease(CD).

InJune2024,theU.S.FoodandDrugAdministration, FDA,acceptedasupplementalnewdrugapplication, sNDA,filingforbrexpiprazoleincombinationwith sertralineforthetreatmentofadultswithpost-traumaticstressdisorder(PTSD).TheFDAplanstohosta PsychopharmacologicDrugsAdvisoryCommittee meetingtoseekinputonissuesrelatedtothesNDA. Themeetingisanticipatedtooccurduringthefirst halfof2025.Iftheapplication,isapproved,thebrexpiprazoleandsertralinecombinationtreatment wouldbethefirstFDA-approvedpharmacological treatmentforPTSDinmorethan20years.

InOctober2024,Lundbeckinitiatedthefirstclinical trialofitsCD40Lblocker,LuAG22515,inpatients. Theproof-of-concept(PoC)trialwillevaluatetheefficacy,safety,andtolerabilityofLuAG22515asapotentialtreatmentforThyroidEyeDisease,anautoimmunediseasecausingadebilitating,disfiguring,and potentiallyblindingperiocularcondition.Blocking CD40LinhibitsbothBandTcellactivationswithout directclearanceofBcellpopulationsandholds strongpromiseintreatingawiderangeofautoimmune-relatedCNSdisorders.

InOctober,Lundbeckannouncedpositiveresults fromtheSUNRISEphaseIIIpivotaltrialofVyepti® (eptinezumab)inmigraineprevention.Vyepti® confirmedefficacy,meetingtheprimaryandallkeysecondaryendpoints.SUNRISEwaspredominantlyconductedinAsia,evaluatingtheefficacyandsafetyin patientswithchronicmigraine.Basedonthetrialresults,Lundbeckplanstoinitiatediscussionswithrelevantregulatoryauthoritieswiththeaimofmaking Vyepti® availableforpeoplesufferingfrommigraine acrossAsia.

Epilepsybackinthepipeline

In2024,LundbeckacquiredLongboardPharmaceuticalswiththeleadassetbexicaserinwhichholds blockbusterpotential.InSeptember2024,aglobal phaseIIItrialwasinitiatedbyLongboardPharmaceuticals,evaluatingbexicaserinforthetreatmentof seizuresassociatedwithDravetSyndrome,oneof therareepilepsies.InNovember,LongboardPharmaceuticalsinitiatedasecondphaseIIItoevaluate theefficacyofbexicaserininDevelopmentalandEpilepticEncephalopathies(DEEs).

Bexicaserinhasshownencouraginganti-seizureeffectstodateinpreclinicalandclinicalstudies,with itsnext-generationsuperagonistmechanismspecificallytargeting5-HT2C receptors,supportingbexicaserin’spotentialtoofferahighlydifferentiated andbest-in-classprofile.Itcomplementsperfectly

ourlate-stageinternalpipelineandourFocusedInnovatorambitiontobuildaneuro-rarefranchiseand reestablishLundbeck’sstrongpresenceintheepilepsyspace.

Thereisastrongunmetneedacrossabroadrange ofepilepsyindications,includingDevelopmentaland EpilepticEncephalopathies(DEEs).Amongthemore than20knownDEEs,only4haveapprovedtreatmentssofar.Theinnovativepotentialofbexicaserin, withitsunique5-HT2C super-agonistmechanismof action,positionsustoaddresssignificantunmet needsinsevereepilepsiesacrossDEEsincluding DravetandLennox-Gastautsyndromes.

BexicaserinhasthepotentialtoaddressallDEEs, andcomparedtothetreatmentscurrentlyavailable, e.g.,fenfluramine,bexicaserinhasgreaterselectivity andspecificity,designedtoonlybind5-HT2Creceptors.On30January2025,Lundbeckannouncedthe headlineresultsofthebexicaserinPACIFICphase 1b/2a12monthsOpen-Label-ExtensionstudyevaluatingbexicaserininpatientswithDevelopmental andEpilepticEncephalopathies(DEEs)demonstratingasustained,durableresponseinseizurereductionandafavorablesafetyandtolerabilityprofile acrossabroadrangeofDEEpatients.Thesedata providefurthersupporttobexicaserin’spotentialto offerahighlydifferentiatedandbest-in-classprofile.

Hormonal/neuropeptidesignaling

LuAG09222–phaseII

LuAG09222representsapotentialnewtherapeutic optionforthetreatmentofmigraine,which,unlike thecalcitoningene-relatedpeptide(CGRP)migraine treatmentdrugclass,isamonoclonalantibodytargetingpituitaryadenylatecyclase-activatingpolypeptide(PACAP).PACAPanditsreceptorsare broadlyexpressedinthenervoussystemsandinflammatorycells.ByinterferingwiththePACAPsignaling,thereisapotentialtoaffectmultiplesymptomsofheadachedisorders.

LundbeckhasinitiatedthePROCEEDtrial,aphaseIIb trialwithsubcutaneouslyadministeredLuAG09222 thatbuildsonthepositiveresultsoftheHOPEtrial.

PROCEEDisaninterventional,randomized,doubleblind,parallel-group,placebo-controlled,dose-findingphaseIIbtrialthatwillbeconductedinEurope, JapanandtheU.S.Itassesses4differentdosesofLu AG09222versusplacebo,administeredsubcutaneouslyoncemonthlyforthreemonths.Thetrialisintendedtoestablishtheoptimaldoseforfuture globalpivotaltrialsdesignedtoconfirmtheefficacy andsafetyofLuAG09222asamigrainepreventive treatment.PROCEEDisplannedtoenrollapproximately498patientsandwillassesstheefficacy, safetyandtolerabilityofLuAG09222.

ThetargetpopulationforthistrialisdefinedaspatientsdiagnosedwithmigraineasoutlinedintheInternationalClassificationofHeadacheDisorders ThirdEdition(ICHD-3),andwhofailedtotake2-4differentpreventivemigrainemedicationsinthepast 10years.Studycompletionisexpectedinthesecond halfof2025.

LuAG13909–PhaseI/II

LuAG13909isafirst-in-classmonoclonalantibody, whichhasthepotentialtoofferatreatmentalternativetopatientssufferingfromconditionsrelatedto thehypothalmic-pituitary-adrenal(HPA)axis,leading toincreasedlevelsofadrenocortotropichormone (ACTH).BybindingtoACTHwithhighaffinity,Lu AG13909BaimstoreduceelevatedACTHlevels,potentiallyprovidingtherapeuticbenefitsforindividualswithneurohormonaldysfunctions.

Lundbeckhasinitiatedafirst-in-humantrialinpatientswithCongenitalAdrenalHyperplasia(CAH)in December2022,andatrialinCushing’sdisease(CD) inJune2024.

Circuitry/neuronalbiology

BrexpiprazoleinPost-TraumaticStressDisorder (PTSD)

On25June2024,Lundbeckannouncedthatasupplementalnewdrugapplication(sNDA)forbrexpiprazoleincombinationwithsertralineforthe treatmentofadultswithpost-traumaticstressdisorder(PTSD)wasacceptedandfiledbytheFDA.

ThesNDAisbasedondatafromthreerandomized clinicaltrialsevaluatingthesafetyandefficacyof brexpiprazoleincombinationwithsertralineinadult patientswithPTSD,namelythephaseIItrial061and thetwophaseIIItrials071and072.

Theprimaryendpointforallthreetrialswasthe changefromweek1toweek10intheClinician-AdministeredPTSDScale(CAPS-5)totalscoreforbrexpiprazoleandsertralinecombinationtherapyversus sertralineplusplaceboinpatientsdiagnosedwith PTSDaccordingtotheDiagnosticandStatistical ManualofMentalDisorders,FifthEdition(DSM-5).

Thetrialswererandomized,doubleblind,andactivecontrolled,andTrial061and071wereflexible-dose trials,whileTrial072wasafixed-dosetrial.InTrial 061and071,brexpiprazoleincombinationwithsertralinewasassociatedwithastatisticallysignificant reduction(p<0.05)inPTSDsymptomscomparedto sertralineplusplacebo,asmeasuredbythechange intheCAPS-5totalscorefromweekonetoweek10 (primaryendpoint).InTrial072,whiletheprimary endpointwasnotmet,reductionsinPTSDsymptom severitywithbrexpiprazoleincombinationwithsertralinewereconsistentwithTrials061and071.

Acrossthethreerandomizedtrials,thecombination ofbrexpiprazoleandsertralineinadultpatientswith PTSDwasgenerallywell-tolerated,andnonew safetyobservationswereidentified.

FDAplanstohostaPsychopharmacologicDrugsAdvisoryCommitteemeetinganticipatedduringthe firsthalfof2025.Ifapproved,thebrexpiprazoleand sertralinecombinationtreatmentwillbethefirst FDA-approvedpharmacologicaltreatmentforPTSD inmorethan20years.

Brexpiprazole–phaseIIIinadolescentpatients (13-17yearsold)withschizophrenia

ATypeIIvariationtoapplyforapediatricschizophreniaindication(foradolescentsaged13to17 years)wassuccessfullysubmittedtotheEuropean MedicinesAgency(EMA)on26June2024.Theexpectedactiondateisinthesecondquarterof2025.

ThesubmissionisbasedonthephaseIIItrial33110-234inadolescentpatientswithschizophrenia (NCT03198078),whichdemonstratedasignificant improvementforbrexpiprazolecomparedtoplacebo. Inthetrial,brexpiprazolewasgenerallywell tolerated,andthesafetyprofilewassimilartothat observedinadultpatientswithschizophrenia.The trialformspartofthebrexpiprazoleEMAPaediatric InvestigationPlan(PIP).

Aripiprazole–2-monthlong-actinginjectable (LAI)formulation

Thenew2-monthformulationisaninnovativeadditiontothelong-actinginjectable(LAI)franchiseand haspatentprotectionuntiltheearlypartofthenext decade.

AsupplementalNewDrugSubmission(sNDS)forthe 2-monthformulationhasrecentlybeenapprovedby HealthCanada(January2025).

Basedonpharmacokineticmodelling,twosupplementalNewDrugApplications(sNDAs)toupdatethe AbilifyAsimtufii® andAbilifyMaintena® USPIs,witha 1-dayinitiationregimen(1-IR)inadditiontothecurrentlyapprovedinitiationregimens,wereaccepted andfiledbytheFDAinAugust2024,withatarget dateforcompletionofthereviewof30March2025 forbothproducts.Ifapproved,patientsstabilizedon oralAbilifywillbeabletoinitiatetheevery-2-months AbilifyAsimtufii® treatmentregimeninasingleday byadministeringoneinjectionofAbilifyAsimtufii® 960mg,oneinjectionofAbilifyMaintena® 400mg, andasingleoraldoseofAbilify20mg.ForAbilify Maintena®,the1-IRconsistsoftwoseparateinjectionsofAbilifyMaintena® 400mgandasingleoral doseofAbilify20mg.

MAGLiprogram–phaseI

Followingtherecentcompletionofamechanismof actionphaseItrialwithLuAG06474,emanating fromtheacquisitionofAbide,ithasbeendecidedto writedownpartofthecarryingamountofthisasset intheFinancialStatementsfor2024.Thereisstillsignificantpotentialvalueremainingfromthisacquisition,includinganadditionalongoingclinicalprogramandauniquediscoveryplatform.

Vortioxetine–Pediatricdevelopmentprogramin MajorDepressiveDisorder(MDD)inJapan

Givenalargeunmetmedicalneedandnomedicines approvedinJapanfortreatmentofMDDinchildren, LundbeckhasdecidedtoinitiateapediatricdevelopmentprogramincollaborationwithitsalliancepartnerTakeda.

ThephaseIIItrialisarandomized,double-blind,placebo-controlled10-weeksstudyevaluatingtheefficacyandsafetyofflexibledosevortioxetine(1020mg)inMDDinadolescentsaged12-17years,with First-Patient-First-VisitplannedforQ42025.

InAugust2024,basedonthedevelopmentprogram, LundbeckandTakedareceivedapositiveopinion fromtheJapanesePharmaceuticalAffairsCouncil CommitteeonDrugIoftheMinistryofHealth,LabourandWelfare,grantingvortioxetinewasgranted a2-yearextensionuntil2029ofthere-examination periodfortheadultindicationinMDD.Thismeans thatvortioxetine’slossofexclusivityinJapanwillbe extendedbytwoyears.Thisextensionisunrelated tothephaseIIItrialoutcome.

Proteinaggregation,folding, andclearance

LuAF82422(amlenetug)–phaseII

LuAF82422isamonoclonalantibody(mAb)targetingthepathologicalformoftheproteinalpha-synucleinthatisbelievedtoplayapivotalroleinthe

developmentandprogressionofneurodegenerative diseasessuchasmultiplesystematrophy(MSA),Parkinson’sdisease(PD),andothersynucleinopathies.

Bytargetingpathologicalalpha-synucleinwithanantibodythatwillinhibitaggregationandpotentially clearpathologicalalpha-synucleinfromthebrain, theprojectaimstodemonstratedelayofdisease progressionandtherapeuticeffectondiseaseburdenandfunction.AphaseIIrandomized,doubleblind,placebo-controlledexploratoryproof-of-concept(PoC)trial(AMULET)testingLuAF82422inMSA patientswasinitiatedinNovember2021 (NCT05104476)intheU.S.andJapan.

InJanuary2024,Lundbeckannouncedtheresultsof theAMULETPoCtrial.Thetrialincluded61MSApatientsrandomized2:1(40onLuAF82422versus21 onplacebo)andtreatedfor48-72weeks.Theprimaryendpointinthetrialmeasuredtheslowingof progressionofMSAasmeasuredbytheUnifiedMultipleSystemAtrophyRatingScale(UMSARS)Total ScorePartIandII,whilethekeysecondaryendpointsincludedModifiedUMSARSPartIaswellas severalotherclinicaloutcomemeasuresandbiomarkers.Theprimarystatisticalapproachconsisted ofaBayesianslopeanalysis.Whilethetrialdidnot reachstatisticalsignificanceonitsprimaryendpoint, atrendtowardsslowingMSAdiseaseprogression wasobservedinthegroupexposedtoLuAF82422 comparedtotheplacebogroup,andadditionalsignalsofefficacywereobservedacrossmultiple

clinicalandbiomarkerendpoints.LuAF82422was generallywell-tolerated.Consequently,LundbeckinitiatedaphaseIIIclinicaltrialinNovember2024.

OrphandrugdesignationforMSAwasgrantedby theEMAinApril2021andSAKIGAKEpioneeringdrug designationwasgrantedbytheJapaneseHealth

Commitmenttodiversityinclinicaltrials

Lundbeckunderstandsthatbraindiseaseswreakhavoc withoutbias.Whetheritbegenetics,age,race,sex,ethnicity,socioeconomics, oraccesstohealthcare,understandingandfullyevaluatingthemultitudeoffactors thatinfluenceaperson’shealtharekeytoboththe developmentofgoodmedicineandtheequitableadvancesinbrainhealth.Aspartofourongoingcommitmenttosustainingadiverseclinicaltrialinfrastructure, wehaveestablishedthebelowClinicalTrialDiversity Principlesbelowandarecommittedtotrackingand monitoringprogressagainstthem.

Developandexecuteaclearstrategytoachieve diversityinourtrialsglobally

Weaimforeachtrialtobedesignedwiththeintention ofensuringparticipantsmirrorthefulldiversityofthe patientpopulationinthecountryorregionandthediseasewearestudying.Thiswillrequireaconcentrated efforttoinvolveunderrepresentedpopulationsinour marketedregionsthroughfocusedpatient-inclusioncriteria;attentiontothediversityofclinicaltrialsitesand investigators,removalofbarriersthatcouldimpedethe

AuthoritiesinMarch2023.InApril2024,Lundbeck alsoobtainedorphandrugdesignationforthe LuAF82422inMSAbytheFDA.

participationofcertaingroupsinclinicaltrialsanduse ofreal-worlddatatoinformdevelopmenteffortsand improveunderstandingofdiseasesandproducts.

Collaboratewithpatientadvocacygroupschoosing tomakediversityapriority

Lundbeckhasalong-standingfocusoncommunityoutreach,andwearecommittedtoexpandingpartnerships withorganizationsthatpossessalike-mindedfocuson diversity.Incollaborationwithexternalpartners,we strivetoestablishtrustwithdiversepatientandcaregiverpopulations,gaindeeperinsightintounmetpatientneeds,andbuildawarenessaboutopenclinicaltrialstofurtherenhancethediversityofourclinicaltrials.

Implementintegratedoversightapproachtoinform, analyzeandact

Weaimtocontinuouslyinformandevolveourinternal thinkingandprocessesbyactivelymonitoringclinical trialdiversitytargetsandutilizingreal-worlddatatoensurewearedrivingtheinclusionofunderrepresented populationsinourclinicaltrials.

Neuroimmunology/ Neuro-inflammation

LuAG22515–phaseIb

LuAG22515isaCD40L/humanserum-albuminFab bispecificfusionproteinthatblockstheCD40L/CD40 pathwaythroughdirectcompetitionwithCD40of CD40L,therebyaffectingadaptiveandinnateimmuneresponses.LuAG22515isapromisingtherapeuticcandidatebeingdevelopedunderalicensing andcollaborationagreementbetweenLundbeckand AprilBioCo.,Ltd.

LuAG22515exhibitshighpotency,anextendedhalflifeduetoitsSAFAtechnology,andanimproved safetyprofilecomparedtootherimmunosuppressingMoAs.BytargetingtheCD40Lpathway,whichis involvedintheactivationofcomplexT-cellmediated autoimmuneresponses,LuAG22515representsa novelapproachinthetreatmentlandscapeofautoimmuneandneuro-immunologicaldiseases.

LundbeckhasinitiatedaphaseIbtrialtoassessthe efficacy,safety,andtolerabilityofLuAG22515asa potentialtreatmentforThyroidEyeDisease,anautoimmunediseasecausingadebilitating,disfiguring, andpotentiallyblindingperiocularcondition.The phaseIbtrialisplannedtoenroll19patients.

Otherprojects

Lundbeck’slongexperienceandcontinuouswork withinneurosciencehaveprovideduswithaglobal

networkinpreclinicalandclinicalresearch.ItisessentialforustomaintainourstronginternalR&Dcapabilitiesandtobuildexternalalliancestosupplementourinternalcapabilities.70%ofLundbeck’sdevelopmentportfolioisexternallysourced.Wecombineinternalandexternalinnovationtocreatea strongpipeline.Internalresourcesprovideimportantcompetitiveintelligenceandinsightsinto R&Dtrends,andweareveryinspiredbyexternalsciencewhetherweworkwithacademiaorotherindustrypartners.

Withthesupportfromtheworld-renownedMichael J.FoxFoundation,Lundbeckiscombiningitsbiomarkerdiscoverieswithleadingmicrofluidicexperts attheDanishTechnicalUniversity(DTU)todevelopa state-of-the-artbiomarkerassayforParkinson’sdisease(PD).WithasecondgrantfromtheMichaelJ. FoxFoundation,Lundbeckisleadingthediscoveryof aradioligandasamarkerofneuroinflammationfor PDandotherbraindiseasesincollaborationwithexpertsinpositronemissiontomography(PET)atAarhusUniversity.

DrivinginnovationwithAI

AtLundbeck,AIanddigitizationarepivotaldriversof innovation.Severalinitiativeshavebeenlaunchedto expediteAIanddigitaltechnologyadoption.

LundbeckhaspartneredwithIambicTherapeuticsto leveragetheirAI-powereddrugdiscoveryplatform, focusingondevelopingsmallmoleculetherapeutics

formigraine.Additionally,Lundbeckcollaborates withLogica,integratingValoHealth’sAI-powered OpalComputationalPlatform™andCharlesRiver’s drugdiscoveryexpertisetocomplementin-house moleculediscovery,applyingAItobothsmalland largemoleculediscoveryprojects.

Inbiologics,anin-housecompetitiveimprovement toAlphaFolddrivesmAbdiscoverywithanimproved predictionrateandspeed.EffectiveAIuserequires scalablecomputerpower,advancedanalyticaltools, andFAIR(Findable,Accessible,Interoperable,and Reusable)data.LundbeckiscommittedtoFAIRdata principlesandestablishingdatagovernancepracticesforfuture-proofdatareuse.

Lundbeck’sScienceCloud,astate-of-the-artplatform onAmazonWebServices(AWS),supportstheFocusedInnovatorStrategybyprovidingon-demand infrastructureforcomputingneeds,facilitatingdaily innovation.

R&DhasdevelopedKnowledgeGraphsthatintegrateexternalandinternaldata,unveilinginsights forgene-levelexploration,proteintargeting,and drugrepurposing.Lundbeck’sdigitalecosystemfor clinicaltrialsensuresreal-timeaccesstohigh-quality trialdata.Decentralizedelementsanddigitalhealth technologiesareincorporatedtogenerateobjective measuresandensurepatient-centricdevelopment.

ToolslikeCopilotandGenAIenhancepersonal productivityacrosstheorganization.By2025, LundbeckaimstodeliveronthreestrategicAIinitiatives:

• AIinStructuredContentGeneration,

• AI-enabledLiteratureReview,and

• Chatwithexternaldocumentationtosupportstrategicplanninganddecision-making.

Patientssharetheirperspectives

In2024,Lundbeckcontinuedits‘Letthepatient speak’eventsfocusingoninnovativewaysofintegratingpatients’perspectivesintoourdevelopment programs.Weinvitepatientsandcaregiverstoshare theirperspectives,ultimatelyhelpingLundbecktoincorporateinsightsintoinnovationandintegratedevidencegenerationefforts.

Lundbeck’sdevelopmentorganizationidentifiedand implementedinternalframeworksthathelpthe companyoperationalizePatient-FocusedDrugDevelopmentbybringingthepatientvoiceclosertoresearchanddevelopmentefforts,describinghowto seekpatientinputtotrialdesigns,informingpatientcentricoutcomeassessmentstrategies,and

fosteringanintegrated,patient-centeredapproach toevidencedevelopmentthroughoutthedruglife cycle.

InpartnershipwiththeDanishKnowledgeCentrefor Headache,weaimtoexplorenovelwaysofgeneratingreal-worldevidencedirectlyfrompatientsvia digitalapplications.Thepurposeofthispilotproject istodeliverscientificevidencetoimprovemigraine treatmentinDenmark.Suchaninitiativeenables Lundbecktolearnandstrengtheninternalcapabilitiestoleadfutureinnovativedigitalengagementinitiativesdevelopingpatient-centered,real-worldevidenceinsupportofourcurrentandfutureportfolio.

Cooperationinneuroscience

TogetherwiththeEuropeanHealthDataandEvidenceNetwork(EHDEN),weareactivelyengagedin neuroscienceresearchwithEuropeandatapartners andseveralotherpharmaceuticalcompanies.

TheEHDENnetworkprovidesLundbeckwitha uniqueplatformforcollaborationwithdatapartners acrossEuropespecializinginspecificdiseaseareas, ensuringaccesstoreal-worlddatasuchasElectronic HealthRecordsfromhealthcaresystemsandregistries.Byactivelyengaginginresearchcollaborations, wecangainmuchdeeperinsightintodiseaseprogression,identifybiomarkersforpatientstratificationandmonitortreatmentresponsesanddisease outcomes,etc.Theresultsofourfirstresearchcollaborationwillbepublishedinthefirsthalfof2025.

Letthebiologyspeak

Causalbiologyinsightsintopathophysiologywithunmetneeddriveproject initiationandindicationdecisions.

Rigorousdevelopmentprocess

Letthemoleculespeak

Initiatingtrialsforanti-bodiesorsmall moleculesinmorethanoneindication allowsforearlyunderstandingofpotential inrarediseasesandde-risksdevelopment.

Letthepatientspeak

Patientfeedbackisanintegratedpartofour developmentplans.Weincorporatepatient reviewandinputintoclinicaltrialdesignsto capturewhatmattersforpatients.

Eptinezumab(anti-CGRPmAb)1,10 Hormonal/ neuropeptide signaling

Migraineprevention 2

LuAG09222(anti-PACAPmAb)3 Migraineprevention

LuAG13909(anti-ACTHmAb)4

Bexicaserin(5HT2Cagonist)

Neurohormonaldysfunctions

Brexpiprazole5 Circuitry/ neuronalbiology PTSD 6

DevelopmentalandEpileptic Encephalopathies

LuAF28996(D1-D2agonist)7 Parkinson’sdisease

MAGLiprogram8 Neurology

Amlenetug(antiα-synucleinmAb) Proteinaggregation, foldingandclearance MultipleSystemAtrophy

LuAG22515(CD40Lblocker)9 Neuroinflammation/neuroimmunology Neurology

1CGRP:Calcitoningene-relatedpeptide 2TwophaseIIIclinicaltrials,supportingregistrationinAsia,includingChinaandJapan:SUNRISE,andSUNSETtrials. 3PACAP:Pituitaryadenylatecyclaseactivatingpeptide.4ACTH:Adrenocorticotropichormone.TwophaseIbtrialsarecurrentlyongoingin CongenitalAdrenalHyperplasiaandCushing’sDisease.Fortechnicalreasons,thelatterhasbeenofficiallycategorizedasa phaseIItrialtoadheretolocalrequirementsinGeorgia.5Actsasapartialagonistat5-HT1AanddopamineD2receptorsatsimilarpotency,andanantagonistat5-HT2Aand noradrenalinealpha1B/2Creceptors 6Post-traumaticstressdisorder 7DopaminereceptorD1andD2 8MAGLi:Monoacylglycerollipase(“MAGlipase”)inhibitor 9PhaseIbtrialongoinginTED(ThyroidEyeDisease) 10ClusterHeadachenotpursued

Masashi,livingwithAnxiety

Financialperformancereview andoutlook2025

In2024,LundbeckreachedrecordrevenueofDKK22billionwithacceleratedgrowthforstrategicbrands(+21%CER)

In2024,Lundbeckdeliveredstrongoperationalperformanceandupgradedthegrowthoutlookforthe year.Theexcellentperformancedeliveredin2024 providesuswithclearmomentumandweexpectto deliveranotheryearofmeaningfulgrowthin2025.

Acceleratedrevenuegrowth

Lundbeck’stotalrevenuegrewby+14%CER (+11% DKK)toDKK22,004millionin2024,withallregions contributingtogrowth.

Strategicbrandsrecord

TherevenueofLundbeck’sstrategicbrandsincreasedby+21%CER(+20%DKK),reachingDKK 16,462million,representing75%oftotalrevenue andwithallfourproductsshowingdouble-digit growthratesbothCERandreported.

AdjustedEBITDA

AdjustedEBITDAincreasedtoDKK6,347million (+20%CER;+12%DKK)reflectingthestrong revenuegrowthacrossallstrategicbrands.

AdjustedEBITDAmargin(DKK)reached28.8% benefitingfromtherevenuegrowthoffsetby increasedR&Dinvestmentsinthematuring pipeline.EBITDAdecreasedtoDKK5,146million (+7%CER;-1%DKK),impactedbythetransaction andintegrationcostsamountingtoDKK420 millionofLongboardaswellasanimpairmentloss ofDKK547millionfromoneoftheMAGLiprojects affectingR&Dcosts,while2023includedaVyepti® obsolescenceprovision.

Revenueperregion

• UnitedStates:DKK11,325million(+16% CER;+15%DKK)

• Europe:DKK5,146million(+13%CER; +11%DKK)

• InternationalOperations:DKK5,129 million(+10%CER;+5%DKK)

• Rexulti®:DKK5,202million(+16%CER; +15%DKK)

• Brintellix®/Trintellix®:DKK4,847million (+14%CER;+12%DKK)

• AbilifyLAIfranchise:DKK3,504million (+10%CER;+10%DKK)

• Vyepti®:DKK2,909million(+72%CER; +71%DKK)

Keyfigures

Businessperformance

RevenuereachedDKK22,004millionrepresenting growthof+14%CER(+11%DKK).Allregionscontributedtothestronggrowthinstrategicbrandsof +21%CER(+20%DKK)reachingDKK16,462million, equivalentto75%oftotalrevenue.

Approximately64%ofthestrategicbrandgrowth canbeattributedtothestrongperformanceof Vyepti®intheU.S.andEuropeandRexulti® inthe U.S.Vyepti® salesintheU.S.andEuropegrew+63% CER(+62%DKK)and+210%CER(+210%DKK),respectively.Rexulti® grew+15%CER(+14%DKK)inthe U.S.Thelargestmarketsforthestrategicbrandsare theU.S.,Canada,Spain,ItalyandAustralia.

Strategicbrands

Rexulti® (brexpiprazole)revenuereachedDKK5,202 millionrepresentingagrowthof+16%CER(+15% DKK).IntheU.S.,revenuecontinuestobenefitfrom agrowingdemandfollowingthelaunchofRexulti® forAADAD.TotalprescriptionsforRexulti® intheU.S. reachedall-timehighbytheendof2024,withRexulti® forAADADconstitutingnearly19%oftotalRexulti® prescriptions.InEuropeandInternationalOperations,salesgrowthwasprimarilydrivenby

increaseddemandandmarketsharegainsincountriessuchasCanadaandBrazil,whichalsobenefittedfromoverallmarketgrowth.Therevenuedistributionbyregionwas92%,2%and6%intheU.S.,EuropeandInternationalOperations,respectively.The largestmarketsaretheU.S.,Brazil,Canada,Australia andMexico.

Brintellix®/Trintellix® (vortioxetine)revenue reachedDKK4,847millionrepresentingagrowthof +14%CER(+12%DKK),withstrongperformanceprimarilyinEuropeandInternationalOperations, mainlydrivenbyacontinuedincreaseinmarket shareacrossmarkets,andinparticularCanada, Spain,ItalyandJapan,whiletheU.S.executeson strategybytransitioningsalesoperationtoTakeda aspartoftheagreementsignedinJuly2024.Additionally,Lundbeckhassuccessfullymitigatedvolume erosionofBrintellix® inBrazilthroughtheincrease ofsalesofVirtuosabrandin2022.Therevenuedistributionbyregionwas33%,36%and31%inthe U.S.,EuropeandInternationalOperations,respectively.Thelargestmarketsforthisproductarethe U.S.,Spain,Canada,Italy,JapanandBrazil.

AbilifyLAIfranchiserevenuereachedDKK3,504 millionandgrew+10%CER(+10%DKK).IntheU.S., salesgrowthwasprimarilydrivenbyacombination ofhigherdemandandpriceincreaseaswellasincreasingconversiontoAbilifyAsimtufii® fromoralaripiprazole,reaching13%intheU.S.inDecember 2024, allofwhichdrove the12%CERgrowthofthe franchise.AbilifyMaintena® 960mghasbeen launchedacrosssomecountriesinEuropein2024, drivinganotableportionofthegrowthdueto

higherdemandwithrobustcontributionfromSpain, theUK,PortugalandPoland.CanadaandAustralia contributedstronglytoInternationalOperations salesgrowththroughcontinueddemanduptakes owingtoastableincreaseinmarketshare.

Therevenuedistributionbyregionwas37%,45% and18%intheU.S.,EuropeandInternationalOperations,respectively.ThelargestmarketsaretheU.S., Spain,Canada,AustraliaandItaly.

Vyepti® (eptinezumab)deliveredstronggrowthin 2024andrevenuereachedDKK2,909millionfollowinganincreaseof+72%CER(+71%DKK)maintaining strongmomentumacrossallregions.Vyepti® sales growthwasmainlydrivenbycontinueddemanduptakewithstrongperformanceintheU.S.,France, CanadaandGermany,withnotablegrowthcontributionsfromothermarkets,suchasSpain,U.A.E.and Switzerland,followingthelaunchin2024.

IntheU.S.,Vyepti® had10.9%ofthepreventionmarketbylateDecember,whichconstitutesanall-time highmarketshare.Therevenuedistributionbyregionwas88%,8%and4%intheU.S.,EuropeandInternationalOperations,respectively.

Maturebrands

Cipralex®/Lexapro® (escitalopram)revenuereached DKK2,048millionrepresentingagrowthof+2%CER (-4%DKK) supportedbyitsestablishedpresencein theGulfRegionandChinaandpriceincreasesinTurkeyandArgentinaasaresultoftheinflation.Thisis offsetbygenericerosion,particularlyinJapan,in Canada,wheresaleswereimpactedbythegenerics listinginQuebec,andinSwitzerland,wherearegulatorypricecutwasimplemented.Therevenuedistributionbyregionwas67%and33%inInternational OperationsandEurope,respectively.Thelargest marketsareChina,Italy,SouthKoreaandBrazil.

RevenuefromOtherpharmaceuticals,whichcomprisestheremainderofLundbeck’sproducts,

reachedDKK3,180millionrepresentingadeclineof -9%CER(-11%DKK),mainlyduetotheexpected lowersalesofmatureproductssuchasNorthera® , Onfi®,Xenazine® andDeanxit®.Asof1January2024, Sabril® isbeingreportedtogetherwithOtherpharmaceuticals,comparativefiguresfor2023havebeen restatedaccordingly.ThelargestmarketsforOther pharmaceuticalsaretheU.S.,China,France,South KoreaandSpain.

Revenuebygeographicalarea

Lundbeck’slargestmarketsaretheU.S.,China,Canada,SpainandItalyconstituting70%ofthetotalrevenue.

UnitedStatesrevenuereachedDKK11,325million representinggrowthof+16%CER(+15%DKK).The strategicbrandsreachedDKK10,275million,increasing+23%CER(+22%DKK)andrepresenting 91%oftherevenue.Therevenuegrowthismainly drivenbytheincreasingmarketshareaswellasthe continueddemanduptakeofRexulti® followingthe AADADapprovalandthestrongperformanceof Vyepti®,whichcontinuestogrowinmarketshare anditsstrongmomentum,offsetbyerosionofmaturebrandssuchasNorthera®,Onfi® andXenazine® .

EuroperevenuereachedDKK5,146millionrepresentingagrowthof+13%CER(+11%DKK).ThestrategicbrandsreachedDKK3,650million,increasing +19%CER(+18%DKK)andrepresenting71%ofrevenue.Therevenuegrowthismainlydrivenbyhigher

Totalrevenue

UnitedStates

InternationalOperations

demandforBrintellix® andAbilifyMaintena® aswell ascontinuedstrongperformanceofVyepti® across theregionmainlyinFrance,SpainandGermany.The launchofAbilifyMaintena® 960mginmanyEuropeanmarketsfurtherfueledthegrowth.Mature brandshavebeenimpactedbyongoingerosionof certainbrandssuchasCipralex®,Cipramil® and Cisordinol®.ThelargestmarketsinEuropeareSpain, Italy,France,SwitzerlandandGreece.

InternationalOperationscomprisesallLundbeck’s marketsoutsidetheU.S.andEurope.Revenue reachedDKK5,219million,representinggrowthof +10%CER(+5%DKK).Thestrategicbrandsreached DKK2,537millionincreasingby+18%CER(+13% DKK)andrepresenting49%ofrevenue.Therevenue growthismainlydrivenbyhigherdemandsacross allfourbrandswithsolidcontributionfromallkey markets,particularlyVyepti® inCanadaandBrintellix® inJapanandCanada,offsetbyanunfavorable currencyimpactmainlydrivenbyCNY,BRLandARS. MaturebrandshavebeenimpactedbyongoingerosionofcertainbrandssuchasLexapro® inJapanfollowingtheentryofgenericcompetitionsincethe endof2022andinCanadafollowingthegenerics listinginQuebec.ThebiggestmarketsareChina, Canada,Brazil,AustraliaandSouthKorea.Chinaand Canadaconstituteapproximately43%oftheregionalrevenue.

Effectsfromhedging

Lundbeckhedgesasignificantpartoftherevenue currencyriskforaperiodof12-18months.Hedging hadanegativeimpactofDKK52milliononrevenue in2024,comparedtoapositiveimpactofDKK137 millionin2023.

GrossProfit

CostofsalesreachedDKK4,230million,decreasing by-4%CER(-6%DKK),mainlydrivenbyloweramortizationcostsduetofullyamortizedproductrightsof oneofourproducts,offsetbyanincreaseincostof goodssoldassociatedwiththehigherrevenue. Moreover,adjustmentsofDKK327millionwere madein2023toaccountpredominantlyforthenegativeeffectofVyepti® inventoryobsolescenceofDKK 312million.Excludingtheeffectofthoseextraordinaryitems,costofsalesincreased+4%CER(+2% DKK),primarilydrivenbytheincreaseincostof goodssoldassociatedwiththesalesgrowthaswell ashigherrawmaterialsandmanufacturingcosts duetotheinflationimpactingcostofsalesinthe firsthalfof2024,offsetbyloweramortizationcosts. Additionally,costofsaleswasimpactedbyaprovisionforenvironmentalmattersin2023.

GrossprofitreachedDKK17,774million,increasing by+19%CER(+15%DKK).Thegrossmarginwas 80.8%representinganincreaseof3.3percentage points.Grossmarginhasbeenimpactedbyinflation

ascommunicatedinthefirsthalfoftheyear,offset byloweramortization.

Adjustedgrossprofitisthegrossprofitexcluding depreciationandamortizationandotheradjustmentslinkedtosalesandcostofsales.Theadjusted grossmarginwas88.4%representinganincreaseof 0.1percentagepoints.

EBITandadjustedEBITDA

Totaloperatingexpenses(OPEX)reachedDKK 14,504million,correspondingtoanincreaseof+19% CER(+19%DKK).TheOPEXratioreached65.9%,increasingby4.5percentagepoints.Theincreaseof OPEXisprimarilydrivenbytheeffectoftheMAGLi impairmentlossofDKK547million,ascommunicatedinthethirdquarterof2024,transactionand integrationcostsrelatedtotheacquisitionofLongboardofDKK420million,aswellascontinuedR&D investments.TheincreaseintheOPEXratiowasalso impactedbyrestructuringandintegrationcostsand higheradministrativeexpenses,mainlydueto higherlegalprovisionsin2024.Adjustedforthe MAGLiimpairmentlossofDKK547million,thetransactionandintegrationcosts,restructuringcosts,as wellasthelegalprovisionsin2023and2024,OPEX increased+11%CER(+10%DKK).

SalesanddistributioncostsreachedDKK8,146million,correspondingtoanincreaseof+10%CER(+9% DKK).TheS&Dratioreached37.0%,representinga decreaseof0.6percentagepoints.Thedevelopment

reflectsthestrongrevenuegrowth,offsetbythe continuedinvestmentsinsalesandpromotionalactivitiesinstrategicbrandssuchasRexulti®and Vyepti® intheU.S.,includingpreparationforPTSD commercializationforRexulti® pendingFDAreview andtheglobalroll-outofVyepti®.Furthermore,sales anddistributioncostsin2024werenegativelyimpactedbytherecognitionofrestructuringandintegrationcosts.

AdministrativeexpensesreachedDKK1,437million,increasingby+11%CER(+11%DKK).Theadministrativeexpenseratioreached6.5%andisinline with2023.MaindriversoftheincreasearehigherlegalcostsmainlyduetoDKK150millionoflegalprovisionsforongoinglitigationsrecognizedinthesecondquarterof2024.

ResearchanddevelopmentcostsreachedDKK 4,501million,withanR&Dratioof20.5%increasing +30%CER(+30%DKK),whichincludestheimpactof theMAGLiimpairmentlossofDKK547million.AdjustedfortheimpairmentlossofDKK547million, R&Dcostsincreased+14%CER(+14%DKK),mainly drivenbytheprogressionofthephaseIIbdosefindingtrialforLuAG09222anti-PACAP,theprogressof phaseIIIpreparationsforamlenetug(anti-a-synucleinmAb)aswellasgeneralhigherdiscoveryand developmentcostsacrossearly-stageprogramsduring2024,offsetbylowerVyepti® phaseIVtrialcosts.

EBITreachedDKK3,270million,increasingby+15% CER(+2%DKK)andreflectinganimprovedgross profitdevelopmentdrivenbyahighergrossmargin andlowersalesanddistributionratio,offsetbyincreasedR&Dcostsduetothecontinuedpipeline progressionaswellastheeffectoftheMAGLiimpairmentlossofDKK547million,transactionandintegrationcostsrelatedtotheacquisitionofLongboardofDKK420million,andhigheradministrative expensesmainlyrelatedtolegalprovisionsdueto ongoinglitigationsofDKK150million.Furthermore, EBITof2023wasnegativelyaffectedbytherecognitionofaprovisionofDKK312millionforVyepti® inventoryobsolescence,DKK69millionregardinglegal provisionsforongoinglitigationsandrestructuring costsofDKK15millionduetotheclosureofthesterilemanufacturinglineinFrance,ofwhichDKK2millionwasreversedduring2024.

AmortizationofproductrightsamountedtoDKK 1,432million,correspondingtoadecreaseof-8% CER(-8%DKK).TotalamortizationanddepreciationreachedDKK1,876million,representingadecreaseof-6%CER(-7%DKK),mainlydrivenbyadecreaseintheamortizationrecognizedin2024dueto fullyamortizedproductrightsofoneofourproducts sincethebeginningof2024.

AdjustedEBITDAreachedDKK6,347millionrepresentinganincreaseof+20%CER(+12%DKK)reflectingthestrongrevenuegrowthdrivenbyperformanceofstrategicbrands.TheadjustedEBITDA

marginwas28.8%,representinganincreaseof0.4 percentagepointsprimarilyduetoOPEX-ratioimprovementsofthestrongrevenuegrowth,partially offsetbyhigherR&Dcostsandunfavorablenetcurrencyandhedgingeffects.

Netprofit

Netfinancial(income)/expensesamountedtoan incomeofDKK449million,equivalenttoanincrease of322%primarilydrivenbythegainfromahedging transactionsettledinconnectionwiththeacquisition ofLongboard.

Theeffectivetaxratefor2024was15.5%(23.5%for 2023).Thetaxrateispositivelyimpactedbythereversalofanuncertaintaxpositionrelatedtoatax auditclosedinthethirdquarterof2024.

NetprofitreachedDKK3,143million,corresponding toagrowthof37%.

AdjustednetprofitandEPS

Adjustednetprofitisthenetprofitexcludingdepreciationandamortizationandotheradjustments, netoftaxes.AdjustednetprofitreachedDKK5,261 million,increasing+26%andreflectingtheEBITdevelopment.

AdjustedEPSwasDKK5.31,correspondingtoanincreaseof+26%.

Cashflow

Cashflowsfromoperatingactivitiesamountedto aninflowofDKK3,326millioncomparedtoaninflow ofDKK4,080millionin2023.Thisdecreasewas drivenbythesettlementofliabilitiesrelatedtoLongboard'slong-termincentiveprogramandtransactioncostsassociatedwiththeacquisitionaswellas higherreceivables,partiallyoffsetbyalowerinventorybuild-upduetothecompletionofthefixedsupplyagreementforVyepti® inSeptember2023.

Lundbeck’snetcashflowsfrominvestingactivitieswereanoutflowofDKK15,286millioncomparedtoanoutflowofDKK498millionin2023.The investingactivitiesmainlyincludetheacquisitionof Longboard,followingbycapitalexpendituresin property,plantandequipment,offsetbyproceeds fromsalesoffinancialassets.

Lundbeck’snetcashflowsfromfinancingactivitieswereaninflowofDKK11,629millioncompared toanoutflowofDKK2,085millionin2023mainlyrelatedtotheproceedsoftheloanfacilityfortheacquisitionofLongboard,offsetbythedividendspaid toshareholders.Inaddition,thecashflowfromfinancingactivitiesin2023wasimpactedbyarepaymentofdebt.

ThenetcashoutflowreachedDKK331millioncomparedtoaninflowofDKK1,497millionin2023.

NetdebtdecreasedfromanetcashpositionofDKK 711millionattheendof2023tonetdebtofDKK 12,182millionattheendof2024followingtheacquisitionofLongboard.Thenetdebt/EBITDAratiois 2.4xattheendof2024comparedto-0.1xattheend of2023.Interest-bearingdebtwasDKK16,846millionattheendof2024comparedtoDKK4,299millionattheendof2023.On31December2024, Lundbeck’stotalassetsamountedtoDKK56,976 millioncomparedtoDKK37,407millionattheendof 2023,drivenbytheacquisitionofLongboard.

On31December2024,Lundbeck’sequityamounted toDKK25,010million.

Dividend

TheBoardofDirectorsisproposingdistributionof dividendsfor2024of30%(30%in2023)ofthenet profitfortheyearallocatedtotheshareholders, equivalenttoDKK0.95pershare(DKK0.70pershare in2023)orDKK946million(DKK697millionin2023), inclusiveofdividendsontreasuryshares.Totaldividendsarebasedonthecurrentsharecapital.The dividendpay-outissubjecttoapprovalattheAnnual GeneralMeetingon26March2025.

Financialguidance2025

LundbeckissteadfastinitscommitmenttotheFocusedInnovatorstrategy,withadedicatedemphasis onacceleratingsubstantialgrowthfrom2024 throughourstrategicproducts,Vyepti® andRexulti® , bothofwhichareprojectedtocontinuetheirrobust double-digitgrowthinto2025.

During2025,Lundbeckwillencounterthefirstsignificantimpactfromlossofexclusivity(LoE)onstrategicbrands.ThegrowthoftheAbilifyMaintenaLAI franchiseisprojectedtobedrivenbythecontinued increasedconversiontothetwo-monthformulation, offsettingtheanticipatedimpactofgenericentries inEurope.Brintellix®/Trintellix® willbeaffectedby themodifiedcollaborationwithTakedaintheU.S.as wellasgenericentryinCanada.Maturebrandsare expectedtocontinuetheirerosion,showingamidsingle-digitrevenuedecline.Overall,Lundbeck’srevenuegrowthisprojectedtobebetween7%and10% atCERin2025.Giventhecurrentexchangerates againsttheDanishkrone,salesgrowthreportedin DKKisexpectedtobeapproximately1percentage pointshigherthanatCER.

AsacentralcomponentofourFocusedInnovator strategy,Lundbeckremainscommittedtoinvesting inresearchanddevelopment,advancingbothour late-stageandearlydevelopmentpipeline.In2025, weanticipateanaccelerationofinvestmentsinR&D,

includingtheintegrationofLongboardandtheprogressionofbexicaserinandamlenetugintophaseIII clinicaltrials.LundbeckanticipatesincreasingR&D investmentstobetweenDKK5and5.2billionin 2025,comparedtoDKK3,954millionin2024(excludingtheMAGLiwrite-down).ThissignificantincreaseinR&Dinvestmentsisfinancedbyourdedicatedeffortstowardscapitalreallocationinitiatives withinSales,DistributionandProduction,aswellas additionalcontributionsfromacceleratedrevenue growth.AdjustedEBITDAgrowthisexpectedto rangefrom5%to11%atCERin2025.GiventhecurrentexchangeratesagainsttheDanishkrone, growthreportedinDKKisnowexpectedtobeapproximately2percentagepointslowerthanatCER.

The2025guidanceunderscoresLundbeck’sability andfocustosustainprofitabilitywhileexpanding andprogressingthepipeline.

OtherrelevantfinancialinformationforFY2025atreportedrates

financials,(expenses)/gains

fromhedging,(losses)/gains

RevenueatCER

Effectsfromhedgingareexpectedtoreachalossof DKK425to450millioncomparedtoDKK52million for2024.Depreciation,amortization,andimpairmentlossesareexpectedtobeintherangeofDKK 1.7to1.9billion,comparedtoDKK1,876millionin 2024.Lundbeckanticipatesfinancialitems(net)to

AdjustedEBITDAatCER

resultinalossofapproximatelyDKK435to485millionfollowingtheacquisitionofLongboardin2024, contrastinganincomeofDKK449millionin2024. Theeffectivetaxratefor2025isexpectedtorange between21%and24%,comparedto15.5%in2024.

Alltheaboveexpectationsarebasedonassumptionsthattheglobalorregionalmacroeconomicand politicalenvironmentwillnotsignificantlychange businessconditionsforLundbeckincludingimpacts frommajorhealthcarereformsandlegislative changesaswellasoutcomeoflegalcasesincluding litigations,andthatthecurrencyexchangerates,especiallytheUSdollar,willremainatthecurrentlevel versustheDanishkrone.Theguidanceisalsobased onassumptionsinrelationtotheestimationof gross-to-netdevelopmentsintheU.S.grosssales.Finally,theguidancedoesnotincludethefinancialimplicationsofanynewsignificantbusinessdevelopmenttransactionsandsignificantimpairmentsofintangibleassetsduring2025.

Mid-termtargets

Basedonorganicgrowth,thecompanyexpectsrevenuetoshowamid-singledigitcompoundannual growthrate(CAGR)overthemid-termperiod(2023 to2027).ThecompanymaintainsitstargetforadjustedEBITDA-marginofmorethan30%attheend ofthemid-termperiodin2027,toaccountforthe impactoftheLongboardacquisitionandexcluding anybusinessdevelopmentactivities.

Lundbeckplanstoensureappropriateinvestments inR&Dandprelaunchactivitiesforbexicaserinfollowingthesuccessfulclosureoftheacquisitionof Longboard.Moreover,inaccordancewiththeFocusedInnovatorstrategy,Lundbeckhasinitiatedits mostsignificantcapitalreallocationprograminits historytosustainthecompany’sgrowthwithincreasedfocusoninnovation.

Forward-lookingstatements

Forward-lookingstatementsaresubjecttorisks, uncertainties,andinaccurateassumptions.This maycauseactualresultstodiffermateriallyfrom expectations.Variousfactorsmayaffectfutureresults,includinginterestratesandexchangerate fluctuations,delayorfailureofdevelopmentprojects,productionproblems,unexpectedcontract breachesorterminations,governance-mandated ormarket-drivenpricedecreasesforproducts,introductionofcompetingproducts,Lundbeck’s abilitytosuccessfullymarketbothnewandexistingproducts,exposuretoproductliabilityand otherlawsuits,changesinreimbursementrules andgovernmentallaws,andunexpectedgrowth inexpenses.

Summaryforthegroup2020-2024

Summaryforthegroup2020-2024

Summaryforthegroup2020-2024

Definitions

Interest-bearingdebt

Interest-bearingnetcash

Adjustedgrossprofit3

Adjustedgrossmargin

EBITmargin1

EBITDA

EBITDAmargin

AdjustedEBITDA3

AdjustedEBITDAmargin3

Researchanddevelopmentratio

Returnonequity1

Equityratio1

Investedcapital

Returnoninvestedcapital

Netdebt

Netdebt/EBITDA

Earningspershare,basic(EPS)12

Earningspershare,diluted(DEPS)12

Adjustedearningspershare,basic(EPS)

Cashflowsfromoperatingactivitiespershare,diluted1

Dividendpayoutratio

Dividendyield

Netassetvaluepershare,diluted

Marketcapitalization1

Debtandfinancialinstruments(includingfinancialleases)carryinginterest.

Cash,bankbalancesandsecuritieslessinterest-bearingdebt.

Adjustedgrossprofitisthegrossprofitexcludingdepreciationandamortizationandotheradjustmentslinkedtosales.

Adjustedgrossprofitasapercentageofrevenue.

Profitfromoperationsasapercentageofrevenue.

Profitbeforeinterest,tax,depreciation,amortizationandgainondivestmentofproperties.

EBITDAasapercentageofrevenue.

AdjustedEBITDAisdefinedasEBITDAadjustedbycertainitems.

AdjustedEBITDAasapercentageofrevenue.

Researchanddevelopmentcostasapercentageofrevenue.

Netprofit/(loss)fortheyearasapercentageofshareholders'equity(average).

Shareholders'equity,year-end,asapercentageoftotalassets.

Shareholders'equity,year-end,plusnetinterest-bearingdebt.

Profitfromoperationsaftertaxasapercentageofaverageinvestedcapital.

Interest-bearingdebtlesscash,bankbalancesandsecurities.

Netinterest-bearingdebtdividedbyEBITDA.

Netprofit/(loss)fortheyeardividedbyaveragenumberofshares,excl.treasuryshares.

Netprofit/(loss)fortheyeardividedbyaveragenumberofshares,excl.treasuryshares,incl.warrants,fullydiluted.

Adjustedearningspershare,basic(EPS)isdefinedasEPS,basicadjustedbycertainitems.

Cashflowsfromoperatingactivitiesdividedbyaveragenumberofshares,excl.treasuryshares,incl.warrants,fullydiluted.

Totaldividendsfortheyearasapercentageofnetprofit/(loss).

DividendpershareaspercentageofofficialpricequotedonNasdaqCopenhagen,year-end.

Shareholder'sequity,year-end,dividedbynumberofshares,year-end,excl.treasuryshares,incl.warrants,fullydiluted.

Totalnumberofshares,year-end,multipliedbytheofficialpricequotedonNasdaqCopenhagen,year-end.

1DefinitionsaccordingtotheDanishFinanceSociety'sRecommendations&FinancialRatios.2ThecalculationofEPSisbasedonasharedenominationofDKK1asaresultofthesharesplitcompletedon8June2022.Comparativefigureshavebeenrestatedtoreflectthechangeintradingunitfroma nominalvalueofDKK5toDKK1.3Forthedefinitionofcertainitems,seeAdjustedEBITDAReconciliation

Sustainabilityperformance

Lundbeck’sSustainabilityStrategycomprisesfour pillarsthroughwhichweprioritizeoursustainability efforts.Eachyear,wesetambitioustargetswithin eachpillar,whichalignwithouraspirationsfor2030 (seepage63).

In2024,wemadeprogressonoursustainabilityobjectivesandachievedkeymilestones,eventhough fivetargetswerenotmetandoneisnotentirelyon track.

Accessto health

Business ethics

Lundbeckiscommittedtoadvancingitssustainabilityperformancewhilemaintainingtransparency aboutchallengesalongtheway.

• Accesstohealth:GlobalplatformforHCPswas launchedandthedonationoftreatmenttarget wasachieved.

• Businessethics:CodeofConducttrainingand employeeconfidencetoaddressethicalconcerns targetswereachieved.

• Climatechange&circularity:Scopes1and2are ontrack.Scope3isnotontrackandbothcircularitytargetswerenotachieved.

• Peopleandcommunities:Targetsforthispillar werenotachieved.

Climate change& circularity

Donatetreatmentforatleast 2,5006 patientsinlow-andmiddle-income countriesthroughproductdonationpartnerships.

Launchglobalplatformtoprovideaccesstohealthcareprofessionalswith independentmedicaleducationthroughLundbeckInstituteactivities.

AnnualCodeofConducttrainingcompletedbyatleast 98%ofemployees atworkglobally.

Fouroutoffiveemployeesstatingintheannualemployeesatisfaction survey(ESS)thattheyareconfidentinraisinganethicalorcomplianceconcern.

Reducecarbonfootprintacrossownoperations,supply,anddistribution inlinewithour15-year1.5°Calignedtarget:

• Reducescope1and2CO2eemissionsby65%in2034comparedto2019.

• Reducescope3CO2eemissionsby40%in2034comparedto20191 .

Peopleand communities

Recycle 64%oftheorganicsolventsusedinchemicalproduction

Recycle 75%ofgeneralwasteatproductionsites.

Increaseinshareofunderrepresentedgenderatsenior management level4 yearonyear.

Achieved Notachieved Ontrack Notontrack

Reducelosttimeaccidentfrequency ≤ 3.

Donatetreatmentforatleast 3,000patientsinlow-andmiddle-income countriesthroughproductdonationpartnerships.

N/A

AnnualCodeofConducttrainingcompletedbyatleast 98%ofemployeesatworkglobally.

Fouroutoffiveemployeesstatingintheannualemployeesatisfaction survey(ESS)thattheyareconfidentinraisinganethicalorcompliance concern.

ReducecarbonemissionsinlinewithourNet-ZeroSBTi-approvedtargets:

• Reducescope1and2CO2eemissionsby42%in2029comparedto 2019

• Reducescope3CO2eemissionsby25%in2029comparedto20191 .

• Reducescope1,2and3emissionsby90%in2050.

Recycle63%oftheorganicsolventsusedinchemicalproduction

Recycle70%ofgeneralwasteatallsitesglobally2 .

Maintainanevengenderbalanceinuppermanagement3 ,closestto 40%butnotexceeding 49%

ReachanoverallInclusionscoreof8.55intheannualemployeesatisfactionsurvey(ESS).

Reducelosttimeaccidentfrequency ≤ 3.

Notmorethantwohighconsequencework-relatedaccidentswithabsence. N/A

Maria,livingwithSchizophrenia

Governanceframework

Lundbeckiscommittedtoservingallitsstakeholders.Ourgovernanceframeworkconsistsofrulesandprinciplesthatsupportsustainablefinancialperformanceandlong-termvaluecreationforourshareholdersandsociety.

Shareholders&GeneralAssembly

ThesupremegoverningbodyofLundbeckisthe GeneralAssemblywhereLundbeck’sshareholders exercisetheirrights.TheLundbeckFoundationis ourmajorityshareholderwitha69%ownership share(A-andB-shareholdings).

Anyshareholderhastherighttovote,raisequestionsandpresentsuggestionsatGeneralAssembly meetings.Resolutionscangenerallybepassedbya simplemajority.However,resolutionstoamendthe ArticlesofAssociationrequiretwo-thirdsofthevotes castandcapitalrepresented,unlessotheradoption requirementsareimposedbytheDanishCompanies Act.

SomemattersarealwayshandledbytheGeneral Assembly,e.g.,adoptionandamendingofthe

Company’sArticlesofAssociation,approvalofthe annualreport,andelectionofmembersoftheBoard ofDirectors.

Lundbeckhasatwo-tierboardstructureconsisting oftheBoardofDirectorsandtheExecutiveManagement.Thetwobodiesareseparated,andnoperson servesasamemberofboth.

BoardofDirectors1

Lundbeck’sBoardofDirectorsisresponsibleforapprovingthecorporatestrategy,settinggoalsforExecutiveManagement,andensuringthatmembersof ExecutiveManagementandotherseniormanagers havetherightqualifications.TheBoardofDirectors alsoevaluatesmanagementperformanceandmanagementremuneration.Furthermore,theBoardof Directorshastheoverallresponsibilityforensuring

thatadequateproceduresforriskmanagementand internalcontrolsareinplaceandforoverseeingthe managementofLundbeck’ssustainabilityimpacts, risks,andopportunities.*

FollowinginitialanalysisandproposalfromExecutiveManagement,theBoardofDirectorsassesses Lundbeck’sneedforcapitalonanongoingbasis,and regularlyreviewingLundbeck’scapitalstructure.

ThisresponsibilityisdefinedintheDanishCompaniesActandstipulatedintherulesofproceduresfor theBoardofDirectors.*

TheBoardofDirectorsconsistsof11members,of whichsevenmembersareelectedbytheGeneralAssemblyforaone-yeartermandfourmembersare electedbyemployeesfora4-yearterm.*

FouroutofthesevenmembersoftheBoardofDirectorselectedbytheGeneralAssembly(57%)are consideredindependentwhilethreemembersare notduetotheircloserelationshipwiththeLundbeck Foundation.ThememberselectedbytheGeneral

Governance

AtLundbeck,westructurecorporategovernanceprocessesthroughanumberofmanagerialbodieswhichinteract,control,anddependoneachother.

Assemblybringdeepindustryknowledgeandsolid topmanagementexperiencetoLundbeck.Adetailed descriptionofthemembersoftheBoardofDirectors andtheircompetenciesandexperiencescanbe foundonpage45-46.*

By30June2026,Lundbeckiscommittedtoachieving equalgenderdistribution1 amongallthemembers oftheBoardofDirectors,comprisingthoseelected bytheGeneralAssemblyandthoseelectedbyemployees.Thetargetissetinaccordancewiththenew GenderBalanceAct.Thegendercompositionofthe boardisdetailedonpage112.*

Evaluationprocedure

TheBoardofDirectorshasestablishedaself-evaluationprocedurecovering,amongotherthings,Board ofDirectorscomposition,contributionandresults, agendaanddiscussions,cooperationbetweenthe BoardofDirectorsandExecutiveManagement,as wellascommitteeworkandstructure.

Throughthesecondhalfof2024,theBoardofDirectorsinitiatedthe2024self-evaluationconsistingof 36surveyquestionsandinterviewsbetweenthe ChairandeachBoardofDirectors/ExecutiveManagementmember.

Surveyquestionsfollowedthebaselinequestions askedbyanexternalvendorin2022,andthesurvey

resultaverageisonparwithpreviousyearresults (3.8outof5.0). InterviewsbetweentheChairand theBoardofDirectors/ExecutiveManagement specifythepartnershipaseffective,withahighlevel oftrust,opennessandtransparency.

Moredetailsregardingtheworkperformedbythe BoardofDirectors,theevaluationprocedureandresultshereofcanbefoundatwww.lundbeck.com.

CommitteesoftheBoard ofDirectors

TheBoardofDirectorshassetupthreecommittees: theAuditCommittee,theRemuneration&NominationCommitteeandtheScientificCommittee.

ThethreecommitteesadvisetheBoardofDirectors onfinancialandsustainabilityinformationandreporting,thecompany’snominationandremunerationstrategy,includingtheremunerationoftheExecutiveManagement,aswellasR&Dstrategyand pipelineevaluation,respectively.

AuditCommittee2

TheAuditCommitteeprovidesadvicetotheBoardof Directorsoninternalcontrolsinfinancialandsustainabilityreportingprocedures,financial,accountingandsustainabilitymatters,aswellasontheevaluationoffinancialreporting,tax,treasury,insurance coverage,andriskmanagement.

Additionally,theAuditCommitteeadvisestheBoard ofDirectorsonsustainabilityreporting,overseeing andmonitoringprocessesrelatedtointernalcontrols,accountingpoliciesandothersustainabilitydisclosures.TheAuditCommitteeisresponsiblefor identifyingandselectingLundbeck’sexternalfinancialandsustainabilityauditor,andforprovidingadvicetotheBoardofDirectors,informedbytheauditors’independentadvice.

TheseresponsibilitiesaredetailedintheAuditCommitteeCharter,whichwasupdatedin2024toreflect thenewresponsibilityofoversightonLundbeck’s impacts,risks,andopportunities.*

ThecharterfortheAuditCommitteecanbefoundat www.lundbeck.com.

GramAndersson

Skibsbye 11/0

Thenumbersindicatehowmanymeetingsthememberhaveattended/notattendedrespectively.

AuditCommittee:InMarch2024,theBoardofDirectorsre-electedIlseDorotheaWenzelasChairandre-electedLars SørenRasmussenandLarsErikHolmqvistasmembersoftheAuditCommittee.

ScientificCommittee:InMarch2024,theBoardofDirectorselectedSantiagoArroyoasChairandLeneSkole-Sørensen,JeffreyBerkowitzandJakobRiisasmembersoftheScientificCommittee.

Remuneration&NominationCommittee:InMarch2024,theBoardofDirectorsre-electedLarsSørenRasmussenas ChairandLeneSkole-SørensenandJeffereyBerkowitzasmembers.

ScientificCommittee

Lundbeck’sBoardofDirectorshasaScientificCommittee,whosepurposeistoadvisetheBoardofDirectorsonsupportforstrategicresearchanddevelopment,aswellaspipelineevaluation.

Thecommitteehasaspecialfocusonrisk-balancein thepipeline,reviewoftheR&Dbudgetandreturns oninvestments.AkeyrolefortheCommitteeisto getanin-depthunderstandingofR&Dstrategicinvestments,toprovideabetterunderstandingof thesematterstotheBoardofDirectors.Further,the Committeereviewsthescientificandtechnicalaspectsofpipelinebusinessdevelopmentdealsthat willrequiretheBoardofDirector’sapprovalforexecution.

ThecharterfortheScientificCommitteecanbe foundatwww.lundbeck.com.

Remuneration&NominationCommittee

TheRemuneration&NominationCommitteeadvises theBoardofDirectorsonremunerationandnominationdecisionsregardingmembersofExecutiveManagement.

TheCommitteealsoadvisesonthecompany’soverallremunerationpolicyandpreparestheremunerationreport.Additionally,theCommitteehandlesassignmentsrelatedtorecruitmentandappointment

toLundbeck’sBoardofDirectorsandtothesenior management,anditannuallyassessesthecompositionandperformanceoftheBoardofDirectors,the ExecutiveManagementandtheCommittees.

RemunerationPolicyandReport1

OurRemunerationPolicyspecifiestheframework andoverallprinciplesfordefiningtheremuneration ofLundbeck’sBoardofDirectorsandtheExecutive Management,asfurtherdetailedwithinour2024 RemunerationReport.TheRemunerationReportis publishedannuallybytheRemuneration&NominationCommitteefollowingapprovalbytheBoardof Directorsattheannualgeneralmeeting.*

Theremunerationcomponentsidentifiedinthe policyandintheRemunerationReportseektocontributetowardsLundbeck’sbusinessstrategy,longterminterests,andsustainabilityobjectives.*

ThetermsofreferencefortheRemuneration& NominationCommitteecanbefoundat www.lundbeck.com.

ExecutiveManagement2

Lundbeck’sExecutiveManagementisresponsiblefor theday-to-daymanagementofthecompany,thedevelopmentandimplementationofstrategiesand policies(includingtheSustainabilityStrategy),the company’soperationsandorganization,aswellas

thetimelyreportingtoLundbeck’sstakeholdersand theBoardofDirectors.

TheExecutiveManagementteamconsistsofeight members,ledbyCharlvanZyl,PresidentandCEO. Lundbeck’sCEOhasthehighestresponsibilityforthe corporateandsustainabilitystrategiesandpresents anysignificantdecisionstotheBoardofDirectorsfor approval,includingdecisionsrelatedtothemanagementofLundbeck’smaterialimpacts,risks,andopportunities.Currently,threeoutoftheeightmembersofExecutiveManagementarewomen,equaling afemalerepresentationof38%.*

FurtherinformationaboutthecompositionandexperienceoftheExecutiveManagementcanbefound onpage48-49.

ExecutiveManagementsustainabilityincentives3

A10%shareoftheExecutiveManagement’sshorttermincentive(STI)programislinkedtoLundbeck’s performanceonourSustainabilityStrategy.TheSTI payoutiscontingentontheachievementoffive sharedsustainabilitytargetsrelatedtoLundbeck’s SustainabilityStrategyacrossenvironment,social andgovernanceobjectives.For2024,theseincluded thenumberofsupplierssigningLundbeck’sclimate commitment,renewableenergyagreementsforcertainsites,theshareoftheunderrepresentedgender inmanagement,inclusionscoresinLundbeck’s Our

voice survey,andCSRDreporting;eachmakingupa 2%sharerespectively.*

PleaseseemoreinformationonLundbeck’sSustainabilityStrategyatpage62.*

FurtherinformationaboutLundbeck’sremuneration schemescanbefoundinourremunerationreport.

Disclosureregardingchangeofcontrol

TheEUTakeoverBidsDirective,aspartiallyimplemented intheDanishFinancialStatementsAct,requireslisted companiestodiscloseinformationaboutsignificantagreementsthatmaybeaffectedincaseofacompletedtakeoverbid,particularlyinrelationtothedisclosureofchangeof-controlprovisions.LundbeckdisclosesthattheGroup hasamajorpartnershipagreementinplaceunderwhich anacquiringentitymustdivestanycompetingproductaccordingtoanagreedprocessand,intheabsenceofsuch divesture,Lundbeck’spartnermayterminatetheagreement.IncaseLundbeckfondInvestA/Sholdslessthan 50%ofthesharecapitalorvotingrightsinH.Lundbeck A/S(changeofcontrol),Lundbeckmay bemetwithdemandsforrepaymentonany existingdebtportfolio. Inthe eventLundbeckisacquiredormerged,certainExecutive Managementmembersmay,dependingontheimpacton theirposition,beentitledtoterminateemploymentwith Lundbeckwiththreemonths’noticeandreceiveacompensationofuptoeighteenmonths’remuneration.Given theownershipstructureofLundbecktherisksareconsideredremote.ForinformationabouttheownershipstructureofLundbeck,seepages55-56.

Readmoreaboutourgovernanceat lundbeck.com4

BoardofDirectors1

ElectedChair2013,consideredindependent.

LundbeckCommittees

AuditCommittee(M).

Remuneration&NominationCommittee(C).

Experienceandcompetences3*

Withextensiveexperienceinglobalmed-techfromhismost recentpositionasCEOofColoplast,LarsSørenRasmussen hasdrivenefficiencyimprovementsand internationalization. HisexperienceasChairofseveraldiversityandcorporate governancecommitteessupportsLundbeck’ssustainability strategy.

Directorships

ColoplastA/S(C);WSAudiology(C);Mabtech(C);DanishIndustryCommitteeonDiversity(C);DanishCommitteeofCorporateGovernance(C);Equalis(C);LifeScienceCouncilundertheDanishMinistryofIndustry(C);Business&Financial Affairs(C);GyldendalA/S(M),CopenhagenUniversity(M).

HoldingofA-shares

20,000

HoldingofB-shares

80,000

CEO,LundbeckFoundation. Elected2015,considerednon-independent.

LundbeckCommittees

Remuneration&NominationCommittee(M).

ScientificCommittee(M).

Experienceandcompetences3*

LeneSkole-Sørensenishighlyexperiencedinheadinglisted companiesfromhercurrentandpreviouspositionasCFOof Coloplast.Withastrongbackgroundinfinance,strategy, businessdevelopmentandM&A,sheensureslong-term valuecreationatLundbeck.

Directorships

ØrstedA/S(C);ALK-AbellóA/S(DC)2;FalckA/S(DC)2;Nordea BankAbp(DC).

Elected2021,consideredindependent.

LundbeckCommittees AuditCommittee(C).

Experienceandcompetences3*

IlseDorotheaWenzelhasanextensivetrackrecordinleadershipacrossmultipleindustriesincludingalongcareerat MerckKGaA.Withstrongcompetencesincorporatefinance andbusinessdevelopment,she strengthensLundbeck's strategicdirectiontowardsfinancialgrowthandsustainabilityperformance.

Directorships

DentsplySironaInc.(M);ServierGroup(M);GerrisheimerAG (M).

CEO,FalckA/SandAdelcaApS. Elected2023,considerednon-independent.

LundbeckCommittees ScientificCommittee(M).

Experienceandcompetences3*

With20yearsofexperienceworkingatNovoNordiskinvariouspositionsinthecommercialarea,JakobRiis’competencescontributestostrategicdecision-makingandgovernance,aswellaspharmaceuticalvaluechainmanagement andmarketcommunication.

Directorships

DanishChamberofCommerce(M);Threedirectorshipsin FalckA/Ssubsidiaries.

HoldingofA-shares

None

HoldingofB-shares 61,270

HoldingofA-shares

None

HoldingofB-shares

None

HoldingofA-shares

None

HoldingofB-shares 54,138

LarsSøren Rasmussen

Born1959,Danish

LeneSkoleSørensen

Born1959,Danish

IlseDorothea Wenzel

Born1969,German

JakobRiis

Born1966,Danish

BoardofDirectors1

JeffreyBerkowitz

Born1966,U.S.citizen

CEO,RealEndpoints.

Elected2018,consideredindependent

LundbeckCommittees

ScientificCommittee(M)

Remuneration&NominationCommittee(M).

Experienceandcompetences2*

Withextensiveexperienceinthehealthcareindustry,Jeffrey Berkowitzhasdeepknowledgeofgenericandbrandedprocurementandinventorymanagement,pricing, reimbursement,specialtypharmacydistribution,andhealthcarestrategies.

Directorships

ZealandPharmaA/S(M);ClickTherapeutics(M);

HoldingofA-shares

None

HoldingofB-shares

None

LarsErik Holmqvist

Born1959,Swedish

Elected2015,considerednon-independent

LundbeckCommittees AuditCommittee(M)

Experienceandcompetences2*

LarsErikHolmqvisthasheldmanagementpositionsinmultiplepharmaandmed-techcompanies.Withthisextensive experiencehebringsrobustcompetencesinmanagement, finance,sales,andmarketingwithinlifesciencecompanies toLundbeck.

Directorships

BiovicaInternationalAB(C);theLundbeckFoundation(M); ALK-AbellóA/S(M);VitrolifeAB(M);LifeHealthcare(M).

HoldingofA-shares

None

HoldingofB-shares

75,000

SantiagoArroyo

Born1960,U.S.citizen

ChiefDevelopmentOfficer,BicycleTherapeutics. Elected2021,consideredindependent

LundbeckCommittees

ScientificCommittee(C)

Experienceandcompetences2*

Withextensiveexperienceinclinicaldevelopmentandstrategicleadershipinthepharmaceuticalindustry, SantiagoArroyo’scompetencesenhanceLundbeck'sfocusoninnovativehealthcaresolutionsandpatient-centricapproaches.

Directorships

GlycoEraAG(M).

HoldingofA-shares

None

HoldingofB-shares

None

BoardofDirectors1

Born1972,Danish

Director,CorporateHealth,SafetyandEnvironment.

EmployedatLundbecksince2005 Electedbyemployeesin2022.

Directorships

IndustrialSectorialBoardofOccupationalHealthandSafety (DI)(M);SpecializedCommitteeofChemistry(DI)(M);Environment,HealthandSafetyExpertGroup(EFPIA)(M).

HoldingofA-shares

202

HoldingofB-shares

808

ResearchTechnician. EmployedatLundbecksince1995 Electedbyemployeesin2022.

Directorships

None

HosseinArmandi

Born1962,Danish

Clausen

Born1984,Danish

ClinicalTrialManager,Specialist,Psychiatry. EmployedatLundbecksince2012 Electedbyemployeesin2022.

Directorships

DanishUnionPharmadanmark(M).

PrincipleScientist

EmployedatLundbecksince2016 Electedbyemployeesin2022.

Born1983,Danish

Directorships

DanishHeartAssociation (M);DanishPharmaceuticalSociety,Biopharmacy(M).

HoldingofA-shares

None

HoldingofB-shares

None

HoldingofA-shares

220

HoldingofB-shares

880

HoldingofA-shares

None

HoldingofB-shares

2,583

CamillaGram Andersson

Dorte

LasseSkibsbye

ExecutiveManagement1,3

President&CEO.

JoinedLundbeckin2023

Experienceandcompetences 2*

Withextensiveexperienceincommercialinternationalmanagementwithinthepharmaceuticalindustry,CharlvanZyl drivesLundbeck'scommitmenttopatients,people,and planet.

Directorships

None

HoldingofA-shares

None

HoldingofB-shares

None

ExecutiveVicePresident,People&Culture JoinedLundbeckin2024

Experienceandcompetences 2*

WithextensiveHRleadershipexperiencefrominternational pharmaceuticalcompanies,DianneHolenhancescompany performanceandsupportsLundbeck'ssustainabilityaspirationsthroughastrongpeoplestrategy.

Directorships

None

HoldingofA-shares

None

HoldingofB-shares

None

CFOandExecutiveVicePresident,CorporateFunctions. JoinedLundbeckin2022.

Experienceandcompetences 2*

Withextensiveexperienceinfinancialrolesacrossthepharmaceuticalandbiotechindustries,JoergHornsteinensures financialandsustainabilityperformanceandtransparency.

ExecutiveVicePresident,Research&Development. JoinedLundbeckin2019

Experienceandcompetences 2*

Withover30yearsofexperienceinpharmaceuticalR&D, Per JohanLuthmansupportsLundbeck'scommitmenttodevelopingtransformativetreatmentsand expanding theirindicationspace.

Directorships

None

HoldingofA-shares

None

HoldingofB-shares

22,529

Directorships

Brain+(M)

HoldingofA-shares

26,049

HoldingofB-shares

112,592

CharlvanZyl

Born1967,British

DianneHol

Born1973,Dutch

JoergHornstein

Born1977,German

PerJohanLuthman

Born1959,Swedish

ExecutiveManagement1,3

ExecutiveVicePresident,ProductDevelopment&Supply. JoinedLundbeckin 1988

Experienceandcompetences 2*

WithalongtenureatLundbecksince1988,holdingvarious rolesinR&Dandcorporateplanning,LarsBangensuresinnovativeproductdevelopmentandrobustsupplychain management.

ExecutiveVicePresident,CommercialandCorporate Strategy JoinedLundbeckin2024.

Experienceandcompetences 2*

Withextensiveexperienceinstrategiccommercialleadershipfromthelifescienceandpharmaceuticalsectorsglobally,MariaAlfaiateenhancesLundbeck'sglobalmarketing effortsandcorporatestrategy,leadingintegrationofsustainabilityintothebusinessstrategy.

ExecutiveVicePresident,HeadofEuropeandInternational Operations JoinedLundbeckin2024.

Experienceandcompetences 2*

Withextensiveexperienceinthebiopharmaceuticalsector, serving19yearsatNovoNordisk,MichalaFischer-Hansen hasastrongtrackrecordinimprovingbusinessperformance.

ExecutiveVicePresident,HeadofLundbeckU.S. JoinedLundbeckin2023

Experienceandcompetences 2*

Withextensiveexperienceincorporateandcommercial leadershiproles,ThomasGibbs competencesdrivebusiness performanceontheUSmarket.

Directorships

None

HoldingofA-shares

75,858

HoldingofB-shares

303,432

Directorships

None

HoldingofA-shares

None

HoldingofB-shares

None

Directorships

None

HoldingofA-shares

None

HoldingofB-shares

None

Directorships

None

HoldingofA-shares

None

HoldingofB-shares

None

1Per31December2024.C=Chair,DC=DeputyChair,M=Member.FormoreinformationaboutExecutiveManagementandtheircompetences,pleasevisit lundbeck.com. 2ESRS2,GOV-1,para.21(c) *Subjecttolimitedassurance.3DianneHol(ExecutiveVicePresident,People&Culture),Maria Alfaiate(ExecutiveVicePresident,CommercialandCorporateStrategy),MichalaFischer-Hansen(ExecutiveVicePresident,HeadofEuropeandInternationalOperations)andThomasGibbs(ExecutiveVicePresident,HeadofLundbeckU.S.)arepartofExecutiveManagementintheirrespectiveroles butarenotmembersofExecutiveManagementasregisteredwiththeDanishBusinessAuthority.

LarsBang Born1962,Danish

MariaAlfaiate Born1975,Portuguese

Michala Fischer-Hansen Born1974,Danish

ThomasGibbs

Born1971,U.S.citizen

Riskmanagement

Lundbeck’sriskmanagementprocessesensureclosemonitoring, systematicriskassessmentandtheabilitytoidentify,manageand reportinternalandexternalrisksinachangingenvironment.

Riskmanagementgovernance structure

Lundbeckisexposedtorisksthroughoutthevalue chain,fromtheinitialstagesofdevelopinginnovativepharmaceuticalsinourin-housefacilitiestothe provenpharmaceuticalsreachingthepatients.

Lundbeck’sriskmanagementprocessesfollowasystematicriskassessmentapproach,updatedand adaptedtorespondandmonitorachangingenvironment,aswellastomatchinternalandexternal requirements,inwhichrisksrelatedtoresearchdevelopment,globaleconomicdevelopments,geopoliticsandlong-termforecastsareassessedaspartof Lundbeck’slong-termstrategicplanning.Withthis understandingofthewidercontextandanaccurate

andcompleteoverviewofLundbeck’sactivitiesand resources,ExecutiveManagementhasaclearbasis fordecision-makingonouroverallriskexposureand mitigatingactions.

TheBoardofDirectorsisoverallresponsiblefor ensuringthatLundbeckhasimplementedthenecessaryriskmanagementprocedures.Theoversightof compliancewithintheestablishedenterpriserisk managementframeworkhasbeendelegatedtothe AuditCommittee.

Riskmanagementframework

AtLundbeck,enterpriseriskmanagementisconsideredanintegralpartofdoingbusiness,asreflected intheriskmanagementprocess.

Theprocessstartsinthedecentralizedteamswithin eachexecutivemanagementarea.Theteamshave detailedandextensiveknowledgeoftheriskswithin theirareasofresponsibility.Theysystematically identify,quantify,respondtoandmonitorrisks.They areideallyplacedtomitigateourriskexposurein thefirstinstance.Eachareasharestheriskswiththe centralRiskOfficewhenmaterialupdatesoccur,and atleastonasemi-annualbasis.

ThecentralRiskOfficeprovidestheriskframework, accessesandunderstandstherisks,andconductsinterviewswithmanagement,riskcontributors,and risk-responsibleindividuals.Thisrepresentsanintegralpartinthealignmentofrisksreportedtothe RiskOffice.Incooperationwitheachexecutivemanagementarea,theRiskOfficeassessesthelikelihood ofaneventoccurringandthepotentialimpacton theGroup.ThekeyriskoverviewispresentedtoExecutiveManagementfortheirassessmentandapprovalbeforeitisreportedtotheAuditCommittee andapprovedbytheBoardofDirectors.

ThecorporateriskregisterkeptbytheRiskOffice providesaconsolidatedoverviewofLundbeck’srisk exposurebydetailingeachrisk,riskcategory,and type.Theriskdescriptionsprovidedetailsonthe event,itscurrentstatus,mitigatingactions,andthe likelihoodandpotentialimpact.Ourreportingprocessdefinessixriskcategories:

• Researchanddevelopment

• Market,commercialandstrategy1*

• Supply,qualityandproductsafety1*

• ITsecurity

• Legalandcompliance1*

• Financial Lundbeckhasdevelopedaconciseprocesscovering day-to-dayriskidentification,monitoring,mitigation andreportingwithineachexecutivemanagement areaallthewaytothefinalreportingtoExecutive Management.ThisprocessenablesExecutiveManagementtocontrolLundbeck’sriskappetitewhen decidingstrategyandpractice,andwhenmaking day-to-daydecisions.

Enterpriseriskmanagementand doublematerialityassessment

Theenterpriseriskmanagement(ERM)andthedoublematerialityassessment(DMA)undertheCorporateSustainabilityReportingDirective(CSRD)areinterlinkedastheybothfocusonmanagingrisksand opportunitiesimpactingfinancialperformanceand sustainability.Whiletheenterpriseriskmanagement providesastructuredapproachforidentifying,assessing,andaddressingrisksthatcouldaffectanorganization’sobjectives,includingenvironmental,social,andgovernance(ESG)risks,theCSRD’sDMA complementstheERMbyevaluatingnotonlyhow sustainability-relatedfactorsaffectthefinancialposition,butalsohowthecompany’sactivitiesimpactsocietyandtheenvironment.Together,theseapproachesensureacomprehensiveunderstandingof risksandopportunities,integratingESGconsiderationsintostrategicdecision-makingandenhancing transparencyforstakeholders.

Governanceofimpacts,risks,and opportunitiesunderCSRD

1

Lundbeck’smaterialimpacts,risks,andopportunities(IROs)areidentifiedaspartoftheannualDMA process.TheIROsthatarematerialforreportingin 2024arepresentedonpage65-67andtheviewsand interestsofaffectedstakeholdersareincorporated

intoLundbeck’sexistinggovernancestructuresand frameworks.Thisensuresaconsistentapproachbetweentheenterpriseriskmanagementframework andtheDMA.*

Thecompany’ssustainabilitygovernanceisanchoredwithourBoardofDirectorsandthencascadedthroughLundbeck’sgovernancestructure. TheBoardofDirectorsdefinesandmaintainsoversightoftheorganization’sstrategyandsustainability matters,includingsustainability-relatedimpacts, risksandopportunities.TheBoardofDirectorsapprovestheannualreportingincludingsustainability disclosures.

Priorto2024,Lundbeckmanagedsustainability-relatedriskswithintheexistingriskmanagement framework.WiththeadoptionoftheCorporateSustainabilityReportingDirective(CSRD)in2024, LundbeckhasenhancedthegovernanceandprocessesformanagingESGrisks.TheAuditCommittee nowoverseesthesustainabilityreportingframework andsupervisesthesustainabilityriskmanagement frameworkandprocess,includingrecurringrisk identification,monitoring,mitigation,andreporting atalllevels.*

TheExecutiveManagementapprovesinitiativesto achievetheSustainabilityStrategyandoversees

progress.Progressisdriveninclosecollaboration withotherlevelsofLundbeck’smanagement,specialists’subjectmatters,aswellaswithrelevantlines ofbusinessandcorporatefunctions.Withinthisgovernance,Lundbeckhasinplaceacross-functional workinggrouptoensurecompliancewithregulatory requirements,monitorimpact,risks,andopportunities,aswellastheprogressofourSustainability Strategyandtargets.*

WiththeaimtostrengthentheaccesstosustainabilityexpertisetoallmembersoftheBoardofDirectors,theAuditCommitteeandExecutiveManagement,sessionswithinternalsubjectmatterfunctions todiscussrelevantsustainabilityupdateshavebeen partoftheplannedmeetingsin2024.Thisprocess enablesthemembersofthegovernancebodiesto haveaccesstothesustainabilityexpertisetooversee Lundbeck’skeytopics,aswellasmaterialimpacts, risks,andopportunities

Inaccordancewith§99(d)oftheDanishFinancial StatementsAct,LundbeckhasaglobalDataEthicsPolicy2 Thispolicysetsouttheprinciples throughwhichwecomplywithallapplicabledata privacylawsandregulations,whileensuringthe ethicalandresponsibleuseofdata.TheDataEthicsPolicybuildsuponthecontrolproceduresin placeforourdataprivacyrequirements,covering theprocessingofpersonaldatafromhealthcare professionals,partnersandemployees,aswellas non-personaldata.Lundbeckdataprivacyspecialistscontinuouslyassessnewtechnologiestoaddressanyrisksandmonitorcompliance.

Keyrisks

Riskarea Description

Researchand development

Exposuretodelaysofregulatoryapprovalorfailureinthedevelopmentofnewandinnovativemedicines.

Increasedregulatoryrequirementsforclinicaltrials. Datarequirementsfromproductionofnon-clinicalandclinical studies.

Market,commercial, andstrategy

Pricepressure,newlegislation,regulationofreimbursement andhealthcarereformsinkeymarkets,etc1 . *

Changesinmarketandeconomicdynamicsderivedfromgeopoliticalinstability1 . *

Effectsfrommergersandacquisitions.

Supply,quality,and productsafety

Disruptionofproductionorsupplyorunpredictabledemand andstock-out1 *

Lossoflicensestomanufactureorsellpharmaceuticals.

Defectsinproductqualityorsafety.

ITsecurity Cyber-attacksandcyberfraud. Systemdown-time.

Legaland compliance

Non-compliancewithlaws,industrystandards,regulations,and ourCodeofConduct1 *

Exposuretolegalclaimsorinvestigations1 . *

Potentialconsequences

DelaysorfailureofnewproductscouldimpactpatientswhocannotbenefitfromtheseproductsanddecreaseearningsexpectationsforLundbeckanditsshareholders.

Adelayinregulatoryapprovalmayimpactthepatient’saccesstomedicines Issueswithdataintegritycouldleadtodelaysinstudiesandproduction –ultimatelyleading towithdrawalsandfailuretogainapproval.

Marketrestrictionscouldimpactpatients’accesstoLundbeckproducts. Changesinmarketandeconomicconditionsandhealthcarereformscouldaffectthepricing landscapeaswellasrebatesanddiscounts.

DifferencesinbusinessperformanceandWACC2 vs.assessmentatthetimeofmergersand acquisitionsdealscanleadtoimpairmentlosses.

ThesechangescoulddecreaseearningsforLundbeckanditsshareholders.

Mitigatingactions

Clinicaltrialsarerunandevaluatedthroughouttheresearchanddevelopmentphase. Ongoingevaluationoftheproductpipeline,regulatoryrequirements,andproductbenefit.

Arobustqualitymanagementsystemisinplacetoensureconsistentquality,dataintegrityandthe complianceofclinicaltrialsandclinicalsafetyactivities.

Understandingthepricedevelopmentinmainmarkets. Workingwithhealthcareauthoritiesaroundtheworldtodocumentthevalueofour pharmaceuticals.

Monitorpoliticaldevelopmentsandrequirements.

Arobustmergerandacquisitionsimplementationtrackingprocesses.

Productshortage,notgivingpatientstheneededaccesstothemedicinestheyrequire. Systems,policies,andproceduresareinplacetoensureproductsupply,quality,andsafety.

Dualsourcingstrategyandhighlevelofsafetystockofkeyproducts.

Arobustpharmacovigilancesystem.

DisruptionorcompromiseofITsecuritycouldaffectallpartsofLundbeck’soperations,and productsupplytopatients.

Dataloss,includingpatient-,employee-,proprietarybusiness-andothersensitivedata.

Non-compliancewithlaws,industrystandards,regulations,orourCodeofConductcouldaffectour‘licensetooperate’,resultinlitigationsorinvestigations,exposeLundbecktosignificantfines,andimpactourreputationandearningsforLundbeckanditsshareholders.

ITpoliciesandproceduresareinplacetosafeguardsystemsanddata. Cyberdefensesaretestedonaregularbasis.

AnnualtestingofITdisasterrecoveryplan.

TheCodeofConduct,ComplianceProgramandGlobalComplianceorganizationareinplacetoensureourcomplianceculture.

Annualtrainingstoallemployees.

Thirdpartiesarecommittedtoobservingourlegalandethicalstandardsandaresubjecttodue diligenceandaudits

AglobalComplianceHotlineandinvestigationprocedureareinplaceforreportingandaddressing potentialmisconduct

Financial Fluctuationsininterestratesandexchangeratesincl.impact fromcurrencydevaluations.

Lundbeck’scashflowandearningscouldbeimpactedincasesoffluctuationsin keycurrencies.

TreasuryPolicy.

MonitoringthefinancialexposureandhedgingasignificantpartofLundbeck’scurrencyriskupto 18monthsinadvance.

Internalcontrols

Internalcontrolandriskmitigation

Theriskmanagementprocessandinternalcontrols aimtoeffectivelyidentify,address,andmitigate risksoferrorsinfinancialandsustainabilityreporting,ensuringthatrisksofmaterialmisstatements anderrorsintheseprocessesareminimized.Additionally,theysupporttheoperationsofLundbeck’s complexbusinessbyemphasizingquality,efficiency, andstrongethicalprinciplesindailytransactions anddecision-making.

Internalcontrolsoversightstructure

TheBoardofDirectorshasasupervisorydutyand theExecutiveManagementtheoverallresponsibility forLundbeck’sriskmanagementandinternalcontrolsinrelationtothefinancialandsustainabilityreportingprocesses,includingcompliancewithrelevantlegislationandadditionaldisclosurerequirementspertainingtofinancialandsustainabilityreporting.

Controlactivities–overallstructure

Thecontrolactivitiesarebasedonariskassessment thatiscontinuouslyupdated.Theobjectiveofthe

controlactivitiesistoensurecompliancewithstrategies,policies,manuals,proceduresetc.established bytheBoardofDirectors,theExecutiveManagement,andeachbusinessarea,respectively,andto complywithrelevantlegislation.

OnekeyelementofthecontrolactivityistheInternal ControlFrameworkaddressingthekey-risksfor Lundbeck’sfinancialandsustainabilityreporting.The purposeoftheframeworkistomitigatetherisksof unintentionalorintentionalerrorsandfraud.The frameworkisglobalinscope,incorporatingboth fraudandfinancialstatementrisks.Additionally,havingaglobalframeworkstandardizescontrolsacross allentities,enhancingefficiencyinreportingprocesses,andmonitoringactivities.

Onceayear,andasneeded,theAuditCommitteereviewstheaccountingpoliciesandanychanges thereto,aswellascriticalestimatesandjudgments relatedtothefinancialandsustainabilityreporting.

TheAuditCommitteereportsanyfindingsofthese assessmentstotheBoardofDirectors,which

approvesthefinancialandsustainabilityreporting processesandthefindingsoftheassessments. In connectionwiththefinancialandsustainabilityreportingprocesses,theExecutiveManagementprovidesaseparatestatementthattheconsolidatedreportingisconsistentwithLundbeck’sguidelinesand policies.

Monitoringfinancialreportingcontrolactivities

Riskassessmentandcontrolactivitiesaresubjectto continuousmonitoring.WithinGroupFinance, LundbeckhasestablishedaFinancialCompliancedivisionresponsibleforoverseeinggeneralfinancial compliancemattersandEnterpriseRiskManagement.Thisdepartmentconductsfinancialcomplianceaudits,guidedbyarisk-basedapproach,which encompassreviewsoffinancialprocessesandinternalcontrolswithaprimaryfocusontheInternal ControlFramework,alongwithothergeneralfinancialcompliancematters.Thedefinedaudit’slongformreportisapprovedannuallybytheAuditCommittee.Majorweaknessesandnon-compliancewith theinternalguidelinesarereportedtotheAudit

Committee,whichisresponsibleformonitoringall issues.

Inaddition,aspartoftheirauditoftheFinancial Statements,theexternalauditorsappointedatthe annualgeneralmeeting,reportonanymajorweaknessesinLundbeck’sinternalcontrolsinthelongformauditandassurancereporttotheBoardofDirectors,whilelesssignificantweaknessesareaddressedinamanagementlettertotheCFO.The BoardofDirectorsensuresthattheExecutiveManagementfollowsuponanyoutstandingissues,and theExecutiveManagementensuresthatthesubsidiariesfollowuponanyweaknesses.Onceayear,the subsidiarymanagersandfinancialcontrollersdeclarethattheirreportinginformationisconsistent withLundbeck’sguidelines.

Internalcontrols-Sustainabilityreporting1

In2024,aspartoftheimplementationofCSRD, Lundbeckhasadoptedaninternalcontrolframeworkforsustainabilityreporting.Thischangehas comprisedanevaluationofourinternalprocesses andthereassessmentofexistinginternalcontrols

withintheseprocesses.Asaresult,Lundbeckhasdefinedaroadmaptoredesignandimplementinternal controlsforitssustainabilityreportingprocesses overthenextyears,aimingtoensureaccuracyand completenessofLundbeck’ssustainabilitydisclosures.*

Lundbeck’ssustainabilityreportinggovernance structurewasupdatedtobeconsistentwiththeexistingfinancialriskmanagementandinternalcontrol governancestructure.Throughthisgovernance,the BoardofDirectorshasthesupervisorydutyandthe ExecutiveManagementhastheoverallresponsibility forLundbeck’sriskmanagementandinternalcontrols,includingcompliancewithrelevantlegislation andadditionaldisclosurerequirementspertainingto sustainabilityreporting.TheAuditCommitteehasan advisoryroletotheBoardofDirectors,supporting themonitoringandassessmentofsustainabilityinternalcontrolsinthesustainabilityreportingprocedures.*

TheExecutiveManagementregularlyassessesthe risksthatLundbeckisexposedtoinrelationtosustainabilityreporting.ForanychangesthatcouldaffectLundbeck’sriskenvironment,theExecutiveManagementwillreviewandconsiderappropriatemitigatingactionstogetherwiththeBoardofDirectors.

TheAuditCommitteeisinformedabouttheprogress ofthesustainabilityreportinginternalcontrolimplementationandassesseswhethertheinternalcontrolsrelatedtothesustainabilityreportingprocesses areeffectivetomitigatetherisksidentified.

ControlactivitiesfortheSustainabilityReporting1

Internalcontrolsandmonitoringactivitiesforsustainabilityreportingarebeingincorporatedintothe sameframeworkasLundbeck’sfinancialreporting, whichisinlinewiththeestablishedroadmap.*

Therequirementsforsustainabilityreportinghave beendefinedandincorporatedintoLundbeck’sDoubleMaterialityAssessment,ad-hocanalyses,key metrics,sustainabilityperformancedata,etc.,inthe sustainabilityinformationthatformsthebasisofinternalandexternalsustainabilityreporting.

Lundbeck’sbusinessareasareimplementingreportingprocessesthatareconsistentwithLundbeck’s overallreportingprocessesandcontrolactivities.*

AspartofthelimitedassuranceoftheSustainability Statement,theexternalauditorsappointedatthe annualgeneralmeeting,reportonmajorweaknessesinLundbeck’sinternalcontrolsinthelongformauditandassurancereporttotheBoardof

Directors,whilelesssignificantweaknessesareaddressedinamanagementlettertotheCFO.*

CodeofConductactivities

Lundbeck’sCodeofConductunderpinscompliance efforts,ensuringadherencetointernationalregulations,pharmaceuticalindustrystandards,andcorporatereportingrequirements.Regularauditsalign processesandcontrolswithrecognizedstandards formanagementpractices,whileongoingupdates keeppacewithevolvingregulatorylandscapes.Employeesandthirdpartiesinvolvedinproductmarketingarerigorouslytrained,ensuringaccurateand compliantproductinformationdissemination.

Oureffortsinriskreporting,management,andcomplianceunderscoreourcommitmenttosafeguarding Lundbeck’sreputationandoperationalintegrity.

Lundbeck’sCodeofConduct(link),corporate cultureandcompliancegovernance&oversightproceduresarespecifiedintheBusinessConductsectiononpage131.

TheLundbeckshare

2024wasanexcitingyearforLundbeckwithsignificantachievements, strongfinancialperformance,andsolidprogressioninourR&Dpipeline. However,itisimportanttoacknowledgethattheyearalsobrought increasedgeopoliticaluncertaintiesthatsignificantlyinfluencedtheglobal financialmarkets,andwhichareoutsideourcontrol.

Attheoutsetoftheyear,theLundbeckshareprice beganatDKK28.70forA-sharesandDKK32.76for B-shares,basedontheclosingpricesattheendof 2023(ref.Bloomberg).Throughouttheyear,the B-sharepricereacheditspeakatDKK49.38on17 October2024,anditslowestpointwasrecordedat DKK31.74on8February2024.Bythecloseofthe year,theB-sharepriceendedatDKK41.32marking a26%increaseoverthecourseoftheyear.Incontrast,theDanishOMXC25indexexperiencedadeclineof3%,whileMSCIWorldIndexincreasedby 18%.

Turnover

TotaltradinginLundbeckA-sharesamountedto DKK703millionin2024,whiletheaveragedaily turnoverwasDKK2.8million.Totaltradingin LundbeckB-sharesamountedtoDKK5.8billionin 2023,whiletheaveragedailyturnoverwasDKK23.1 million.

Sharecapital

LundbecksharesarelistedontheCopenhagenStock Exchange,NasdaqCopenhagen.Thesharesarenegotiableandtherearenorestrictionsontheirtransferability.Attheendof2024,Lundbeck’stotalshare capitalamountedtoDKK996million,whichisequivalentto996millionshares.

Financialcalendar2025

26March2025 AnnualGeneralMeeting2025

31March2025 Dividendsfor2024atthedisposalofshareholders(ifapproved)

14May2025

20August2025

12November2025

Financialstatementsforthefirstthreemonthsof2025

Financialstatementsforthefirstsixmonthsof2025

Financialstatementsforthefirstninemonthsof2025

Compositionofshareholders

AccordingtotheLundbeckshareregister,thecompanyhadapproximately50,000shareholdersatthe endof2024,representingapproximately99%ofthe outstandingshares.

TheLundbeckFoundation(LundbeckfondInvestA/S) istheCompany’slargestshareholderandholdsapproximately80%oftheA-sharesandapproximately 66%oftheB-shares.Thetotalsharecapitalheldby thefoundationisapproximately69%andthetotal votingrightsheldbythefoundationinLundbeckis approximately76%.

TheLundbeckFoundationistheonlyshareholderto reportaholdinginexcessof5%ofthesharecapital. Attheendof2024,investorsinNorthAmericaheld 27%ofthefreefloatcomparedto34%in2023;

European(excl.Danish)investorsheld53%comparedto46%in2023;Danishinvestorsheld18% comparedto18%in2023;restoftheworldheld2%, comparedto2%in2023.

Inordertofundourlong-termshare-basedincentive programs,Lundbeckhas4,513,633sharesheldas treasurysharesattheendof2024.Theholdingis splitin348,816A-sharesand4,164,817B-shares.

Attheendof2024,Lundbeck’sBoardofDirectors andExecutiveManagementheldatotalof122,329 LundbeckA-sharesandatotalof713,232B-shares comparedtoatotalof127,049LundbeckA-shares andatotalof700,147B-sharesattheendof2023.

Thetotalnumberofsharesin2024correspondsto 0.06%ofthetotalA-sharesoutstandingand0.09%of thetotalB-sharesoutstanding.

Lundbeckandtheequitymarket

WithinLundbeck,ourInvestorRelations(IR)function isdedicatedtomaintainingtransparentandaccuratecommunicationwithbothprospectiveandexistingshareholders,aswellasequityanalysts.We achievethisthroughacontinuousdialogue,providingin-sightsintoourvision,objectives,businesssegmentsandfinancialprogress.

Intheyear2024,Lundbeck'sInvestorRelationsteam successfullyconductedover250meetingsbothin theformofface-to-facemeetingsandthroughinteractionsviadigitalplatforms,includingTeamsand Zoom.Lundbeckalsohostedawell-attendedCapital MarketEventinValby/CopenhageninOctober2024 followingupontheR&DEventhostedinLondonin November2023.Additionally,Lundbeckactively engagedin12investorconferences,primarilyin person.

Lundbeckiscurrentlycoveredby15sell-sideanalysts,includingleadingglobalinvestmentbanks. Theseanalystsregularlypublishresearchreportson Lundbeck,andacomprehensivelistoftheseanalysts isaccessibleonourwebsite.Followingthereleaseof ourinterimandfull-yearreports,keymembersof Lundbeck'sExecutiveManagementandInvestor Relationsteamembarkonroadshowstoupdate investorsandanalystsonthelatestdevelopments withinthecompany.Ourinvestorpresentationsare availablefordownloadatwww.lundbeck.com.

Sharedata

995,741,110

995,741,110

Martha,livingwithDepression

GuidetotheSustainabilityStatement

In2024,LundbeckintroducesitsfirstfullyIntegratedAnnualReport,aligningwiththerequirementsof theCorporateSustainabilityReportingDirective(CSRD)andtheEuropeanSustainabilityReportingStandards(ESRS).

TheSustainabilityStatementispartoftheManagementReviewandcomprisesfourkeyreportingareas:

• Generalinformation(ESRS2)

• Environmentalinformation(ESRSE1,E2,andE5)

• Socialinformation(ESRSS1,S2,andS4)

• Governanceinformation(ESRSG1)

Thesustainabilitytopicsandrelateddisclosurerequirements(DRs)addressedinthesesectionsareidentifiedbasedonLundbeck’sDoubleMaterialityAssessment(DMA),specifiedonpages64-70.

Assummarizedinthetable“ListofDRscompliedwithandlistofDRsincorporatedbyreference”andincompliancewithtechnicalrequirements,ourCSRDdisclosuresareincludedwithintheSustainabilityStatement,intheappendices,andinothersectionsoftheManagementReview,byexercisingtheoptionof incorporationbyreference.ThedisclosuresplacedoutsideoftheSustainabilityStatementareclearly identifiedwithafootnote,referringtotheapplicabledisclosurerequirementoftheESRSregulation.In addition,anasterisk(*)isaddedaftereachsubsectiontoindicatewhichtextiscoveredbytheIndependentAuditor'sLimitedAssuranceReport.

Lundbeckbelievesthatthisapproachensuresimprovedcoherenceandreadabilityofthereport,limiting thenumberofrepetitionswhendisclosingaboutourbusinessmodel,valuechain,governanceframework,incentiveschemes,andriskmanagementprocesses.

IRO-1

E2-1

E2-2

E2-3

E2-4

E2-5

S2-3 Processes

E5-1

E5-2

E5-3

E5-4

E5-5

SBM-2

Ownworkforce

S1-2 Processesforengagingwithownworkersand

S1-3

S1-4 Takingactiononmaterialimpactsonownworkforce,andapproachestomitigatingmaterialrisksand

suingmaterialopportunitiesrelatedtoownworkforce,andeffectivenessofthoseactions

S1-5 Targetsrelatedtomanagingmaterialnegativeimpacts,advancingpositiveimpacts,andmanaging

rialrisksandopportunities

S1-6 Characteristicsoftheundertaking’semployees

S1-9 Diversitymetrics

S1-14

S1-16

S4-5

SustainabilityatLundbeck

Fordecades,Lundbeckhasemphasizedsustainabilityasakeyelementinthewaywerunourbusiness andstrivetowardsabetterfuture.Lundbeck’sSustainabilityStrategyaimstomitigateourmostsignificantsustainabilityrisks,adverseimpacts,andenhanceourpositiveimpactstosociety.

TheSustainabilityStrategyencompassesfourpillars:

• AccesstoHealth,

• BusinessEthics,

• ClimateChange&Circularity,and

• People&Communities.

ThesestrategicprioritiesreflectLundbeck’scommitmenttointegratingsustainablepracticesthroughoutouroperations,drivingshort-termactionsand long-termambitions.EachpillaroftheSustainability Strategyissupportedbyannualtargetsdesignedto helpusachieveour2030aspirations.

WeplacehighvalueontheUnitedNations’SustainabilityDevelopmentGoals(SDGs)inshapingourstrategy.WehaveidentifiedsevenSDGswhichareapplicabletoourbusiness,andsince2020wehaveused themtoguideouractionstowardsaddressingthe mainchallengeswithineachpillarofourSustainabilityStrategy.

Accesstobrainhealth

Healthisanintegralandcross-cuttingpartofsustainabledevelopment,asrepresentedbySDG3

(GoodHealthandWellbeingforAll).Upholdingall fourpillarsofLundbeck’sSustainabilityStrategyis fundamentalforachievingourcorecommitmentto sustainability-ensuringaccesstohealthcarefor thosewhoneedourtreatments.Byupholdingethicalbusinesspractices,caringforourenvironment andcommunities,andmaintainingafair,engaging, andinclusiveworkplace,webelieveexpansionofour therapeuticreachwithinneuroscienceispossible.

Improvingaccesstobrainhealthalsoprovidesthe opportunitytomakeourmedicalinnovationsaccessibletomorepatientswhoneedthem.Thiswillenhancehealthoutcomes,improvepatientqualityof life,andimprovetheproductivityofindividualsliving withneurologicalandpsychiatricconditions. Wehavedefinedlong-termaspirationstomakeinnovativetreatmentavailablethroughR&D,promote equitableaccess,enhanceculturalacceptability,and providequalityandefficaciousmedicalproducts.

Ouraspirationsforaccesstobrainhealthareinformedbyourkeystakeholders-patients, healthcareproviders,partners,includingcivilsociety

andNGOs,suppliers,includingresearchersandscientists,shareholders,andemployees–eachof whomcontributetowardsdrivingouragendaand provideuniqueknowledgeonhowtoimprovegood healthandwellbeingforall.Ourunderstandingof theirviewsandinterestscomesfromcontinuous,actualinteractionsbyvariousfunctionsatLundbeck.

Eachdayourtreatmentsreachmorethan7million peopleinover100countries1 ,andevenmorepatientsarereachedincollaborationwithourcommercialpartners.Lundbeck’sAccesstoHealthfrontier relatestothelackofparityformentalhealthand neurologywithincountriesratherthanbetween countries,withcurrentoperationslimitedinthose whicharelow-ormiddle-income.

Resilienceofourbusinessmodel

Overall,Lundbeck’sstrategyandbusinessmodelare resilientregardingourcapacitytoaddressourmaterialimpactsandrisksandtotakeadvantageofour materialopportunities.Thisismoststronglydemonstratedinrelationtoclimatechange,asthemanagementofourimpactismature,withinvestmentshavingbeenmadegraduallyoverseveraldecades.Regularevaluationsoftheresilienceofouroperations

andsupplychainsinrelationtoclimaterelatedrisks arecarriedoutandactioned.

Forourotherimpacts,risks,andopportunities, Lundbeckhashistoricallyaddressedthesethrough dedicateddepartmentsandprocesses.Asscience betterinformsusaboutwhattransitionsareneeded towardsimprovedsustainabilitypractices,wewill continuouslydevelopourapproachandunderstandingoftheresilienceofourbusiness.

SustainabilityStrategyupdate

In2024,Lundbeckhasstartedaprocessto updateourSustainabilityStrategytofurther strengthenandprioritizeourmanagementof impacts,risks,andopportunitiesasanintegratedpartofournewbusinessstrategy.This updateispartofourrecurringreviewprocess andaimstoensureadherenceofourSustainabilityStrategywithourbusinessstrategyas wellasfuturerequirementsandprinciplesof duediligenceandresponsibleconduct.These areupheldbytheinterestsandviewsofkey stakeholders,thelatestscientificknowledge, andrelevantEUDirectives,includingCSRD andtheEU Taxonomy.

Lundbeck’ssustainabilityprioritiesandcorrelationwithDMA1

Materialityaspects AccesstoHealth BusinessEthics

Howisthistopicrelatedto Lundbeck’sbusinessmodel andstrategy?

Lundbeck’sbusinessmodelistoresearch, develop,produce,andmarketmedicinesfor psychiatricandneurologicaldiseases.

Ourlong-termsuccessdependsonhealth parity,reducedstigma,andcultural acceptanceofbraindiseases.Pressureon healthcaresystemscouldleadtoreforms potentiallyimpactingLundbeck’sbusiness.

ClimateChange &Circularity

WhenLundbeckmaintainsethicalbusinesspractices andrespectsrulesandregulations,weprotectpatients,upholdstakeholderintegrity,andminimizethe riskoffinancialrepercussions.Ethicalconductto avoidpotentialnegativeimpactsthroughoutinour valuechainisvitalforourlicensetooperate,especiallyinrelationshipswithhealthcareprofessionals, patients,andotherstakeholders.

Lundbeck'sbusinessmodelimpactstheenvironmentnegativelythroughgreenhousegasemissionsfromenergyuse, transportation,andsupplychainactivities,aswellaswaste generationcontributingtoclimatechangeandpotentialpollution.Ifweminimizeourimpactontheenvironmentinthe entirevaluechain,wemitigatetheriskofrestrictionsor disruptionstoourproductionandsupplytothebenefitof ourpatients.

People& Communities

Ourbusinessmodelreliesonattractingandretaininga skilledanddiverseworkforce.WhenLundbeckissuccessfulinmaintainingasafe,inclusiveculture,freeof harassmentanddiscrimination,ithelps usremaina preferredemployerandattractthebestandmost dedicatedscientistsandotherstaff,enablingusto developinnovativetreatmentsforpatients.

WhattopicsdoesLundbeck holdresponsibilityformanagingactualandpotentialimpactsonpeopleandtheenvironmentbasedontheDMA?

+ Innovationintreatment

+ + Patientvoice

- Inequalityinaccesstohealth

- Productsafetyandquality

2

- Responsibleandethicalmarketing

Whatarethefinancialrisksor opportunitiesforourbusiness basedontheDMA?

2

Lundbeck’s aspirationsfor2030

-

- Riskofpricing,reimbursement,andaccess

- Riskoffailureofpharmacovigilance

• Leverageourspecialistknowledgeto addresstheburdenofbraindiseasesand makemedicinesavailable.

• Promoteaccessibilityofourmedicinesby addressingdiscriminatory,physical, economic,andinformationalbarriers.

• Improvementalhealthparity,reduce stigma,supportnationalsuicideprevention efforts,andenhanceculturalacceptability ofbraindiseases.

• Providemedicinesofgoodquality,preserve patientsafety,andcombatcounterfeit medicine.

- Businessethics

- Responsiblesourcing

- Animalwelfare

- BusinessethicsandCodeofConductbreach

- GHGemissionsleadingtoclimatechange

- Airpollution

- Soilpollution

- PFASsoilpollution

- Waterpollutionfrompharmaceuticalresidues

- Wasteandresourceuse

- Damagetofacilitiesfromwildweatherevents

- Increasingrawmaterialcosts

• Promotebusinessethics,includinghumanandlaborrightsthroughstrengthenedcollaboration withkeybusinesspartners.

• DemonstratethattheCodeofConduct compliance programandorganizationworksustainanethical cultureandpreventanyformofcorruption.

• Protecttheintegrityofthehealthcareprofessionalsweworkwithandusetransparency asanasset.

• Deliveronthe“BusinessAmbitionfor1.5°C”pledge.

• Transitionelectricitysupplytorenewablesources.

• Managetwo-thirdsofvaluechaincarbonemissions equallyaseffectivelyascarbonemissionsfromoperations.

• Minimizekeybusinesspartners’carbonemissionsreflectedinrelevantagreements.

• Establishmanufacturingprocessesbasedoncircular economyprinciplestolimitmaterialsuse,waste,andCO2 emissions.

• Expandapplicationofcirculareconomyprinciplestokey partners.

• Usedetailedknowledgeaboutactivepharmaceutical ingredientstominimizetheirenvironmentalimpact.

- Diversity,Equity,andInclusion(DE&I)

- HealthandSafety,Mentalwellbeing

- Humanrightsandhealthandsafetyinthevaluechain

- Inabilitytoattractandretainemployees

• Berecognizedasaworkplacethatfostersphysical andmentalwellbeing.

• Showleadershiptopromotementalhealthwith preventiveactionsatourworkplacesglobally.

• Achievealosttimeaccidentfrequency ≤ 3.

• Berecognizedbyemployeesandexternallyasaworkplacewithaninclusiveculturethatoffersequalopportunitiesforall.

• Influencethepublicdebateonequalityandinclusion bysettingambitioustargets,enhancingdatatransparency,andcommunicatingactively.

• Requestkeybusinesspartnerstopromotediversity andpreventdiscriminationinallitsforms.

Doublemateriality assessment

Everyyear,LundbeckconductsaDoubleMateriality Assessment(DMA)toidentify,assess,andmonitor ourmaterialimpactsonpeopleandtheenvironment (impactmateriality),aswellaskeybusinessrisksand opportunitiesarisingfromsustainabilitytopics(financialmateriality).

In2024,thefollowingsustainabilitytopicsarematerialforreportinginrelationtoourbusinessmodel, operations,andbusinessrelationshipsacrossthe valuechain:

Climatechange(ESRSE1)

Pollution(ESRSE2)

Resourceuseandcirculareconomy(ESRSE5)

Ownworkforce(ESRSS1)

Workersinthevaluechain(ESRSS2)

Consumersandend-users(ESRSS4)

Businessconduct(ESRSG1)

Withinthesetopics,Lundbeckidentified37sustainabilitysub-topicstobeevaluatedformateriality. Thesesub-topicswereassessedasmaterial(i.e.,

impact,financialorboth)ornotmaterialforreporting,asillustratedwithinthematrixonthispage. Eachsub-topicislinkedtospecificimpacts,risksand opportunities(IROs),andthoseIROsdeemedmaterial(listedanddescribedonpages65-67)formthe basisforLundbeck’stopicaldisclosures.Additional detailsonourDMAmethodology,materialitythresholdsandbasisforpreparationareprovidedon pages68-70.AlthoughIROsrelatedtoWaterand MarineResources(ESRSE3),BiodiversityandEcosystems(ESRSE4)andAffectedCommunities(ESRSS3) fellunderourmaterialitythresholds,Lundbeckrecognizesitsresponsibilitytocontinuemonitoringand managingthesetopicsthroughourexistinggovernanceprocesses,policies,andactions.Ourworkon waterandbiodiversityisdescribedonourwebsite throughourpositionpapers,aswellasdisclosedas partofourCarbonDisclosureProject(CDP)reporting.Inaddition,Lundbeck‘seffortstoidentify,preventandmonitoritsimpactonaffectedcommunities areinformedbyoursustainabilityduediligence,includingsiteauditsandengagementwithstakeholdersresidingclosetoourproductionsitesinDenmark,ItalyandFrance.

Impacts,risksandopportunities(1of3)1

Greenhousegas emissionsleading toclimatechange

Damagetofacilitiesfromwild weatherevents

Airpollution

Waterpollution frompharmaceuticalresidues

Soilpollution

PFASsoilpollution

Climatechange

Actualnegative impact Lundbeck’sbusinessmodelentailsthedevelopment,production,distribution,andmarketingofmedicines.Theseactivities haveagreenhousegasemissionsfootprint,whichcontributestoclimatechange.UntilwereachourParis-aligned, Net-Zero SBTitargets,Lundbeckhasanactualnegativeimpactontheenvironment.

Physical financialrisk Scientificevidencesupportsthatclimatechangeismakingextremeweathereventsmorelikelyandsevere.Sucheventscan causephysicaldamagetoLundbeck'sfacilitiesandthoseofoursuppliers.Thismayleadtohighercostsassociatedwithrestoringimpactedfacilitiesandimplementingpreventivemeasures.

Pollution

Actualnegative impact Asaproducerofprimarilychemicalpharmaceuticalproducts,whichtypicallyrequiretheuseoforganicsolvents,Lundbeck’s manufacturingprocessesandoperationsimpactairqualitythroughthereleaseofairpollutantstotheenvironment.

Actualnegative impact Lundbeck‘smedicinescontributetothepresenceofpharmaceuticalresiduesintheenvironment.Thereleaseofpharmaceuticalresiduesbypatientscanleadtothecontaminationofwaterbodiesandecosystems,potentiallyimpactingwildlifeand humanhealth.

Potentialnegative impact

Lundbeck'smanufacturingfacilitiesandsuppliersuseandproducechemicalsandactivepharmaceuticalingredients.Incidentalspillagesorleaksmayleadtosoilqualitydegradation,potentiallyimpactingterrestrialecosystemsandthebroader environment.

Actualnegative impact FirefoamcontainingPFAS(per-andpolyfluoroalkylsubstances)wasuseduntil2011atoneofLundbeck’sproductionsitesin Denmark,incompliancewithapplicablelawandfollowingguidancefromauthoritiesatthetime.In2022,withthegrowing concernoftheenvironmentalharmofPFAS,LundbeckinvestigatedandcouldconfirmPFASpollutionatitsLumsåssite.

Resourceuseandcirculareconomy

Purchasedgoodsandservices,and businesstravel Lundbeck'ssites,purchasedelectricityandheat, andcompanycars Distribution

Suppliersofrawmaterials andcontractmanufacturers Lundbeck’ssites Distribution

- Lundbeck’sproductionsites -

- Lundbeck’sproductionsites

Patients’excretionofpharmaceuticalresiduesafter usingLundbeckmedicines

Chemicalwastemanagementbysuppliers Lundbeck’sproductionsites -

productionsite -

Wasteand resourceuse

Actualnegative impact

Increasingraw materialcosts Financialrisk

CircularprincipleshaveonlybeenintroducedtoalimitedextentregardingLundbeck’sresourceinflowsandoutflows,with focuscurrentlyonreuseandrecyclinginitiativesforhazardousandnon-hazardousmaterialsusedatproductionsites.

Limitedcircularityimpactstheenvironmentthroughtheextractionofvirginrawmaterialsandtheproductionofnon-recyclablewaste,pollution,andcarbonemissions.

Lundbeckfacesalong-termriskoflimitedavailabilityofcertainchemicalrawmaterialsduetotheregulatoryphase-outof unsustainablematerialsandpotentialincreasesinrawmaterialcosts.

Suppliersofrawmaterials,wastemanagement services

Resourcesusedand wastefromLundbeck’s productionsites

Suppliersofrawmaterials

Packagingwasteafter productusebypatients andwastemanagementfacilities

Lundbeck’sproduction sitesandprocurement -

Impacts,risksandopportunities(2of3)1

HealthandSafety, mentalwellbeing

Systemic,potentialnegativeimpact

Lundbeck'sworkforcemayencountervariouswork-relatedaccidents,includingexposuretohazardouschemicals,roadaccidents,andergonomic-relatedillnesses,respectivelyaffectingproductionworkers,salesrepresentatives,andallemployees Additionally,prioritizingemployeewellbeingandeffectivelymanagingwork-relatedstressisessentialforsupportingmental health.

Diversity,Equity, andInclusion (DE&I)

Systemic,potentialnegativeimpact

Inabilityto attractandretain employees Financialrisk

Humanrightsand HealthandSafety

Systemic,potentialnegativeimpact

Innovationin treatment

Patientvoice

Inequalityinaccesstohealth

Riskofpricing, reimbursement andaccess

Productsafetyand quality

Potentialpositive impact

Potentialpositive impact

Systemic,potential negativeimpact

Financialrisk

Systemic,potentialnegativeimpact

Riskoffailureof pharmacovigilance Financialrisk

Responsibleand ethicalmarketing

Systemic,potential negativeimpact

IfLundbeckdoesnothaveadiverse,equitable,andinclusiveworkenvironment,employeesmayexperiencelimiteddevelopmentandreducedwellbeingandhealth

FailuretocontinuouslypromoteDE&Iacrosstheorganizationandpreserveadiverseworkforcecannegativelyaffect Lundbeck'sreputationasanattractiveworkplacewhereeveryonecanthrive.Thisinturncanaffectourabilitytoattractand retainaskilledworkforce,representingamaterialfinancialrisk.

Workersinthevaluechain

Lundbeckworkswithsuppliersinover90countries,includingsomecountriesandsuppliercategoriesthathaveasystemic highriskofdisrespectforhumanrightsandinadequatehealthandsafetymeasuresfortheirworkers

Consumersandend-users

Neurologicalandpsychiatricconditionsseverelyimpactpatients,families,andsociety.Neuroscienceinnovationisessential forbreakthroughsolutions,enhancinghealthoutcomesandimprovingpatients’qualityoflife.

IntegratingthepatientsperspectivesintoR&Danddrugdevelopmentcanleadtotreatmentsthataddressunmetneeds,increasequalityoflife,andcreatemorepersonalizedmedicines

Inequalityinaccesstohealthisasystemicproblemamongandwithincountries Individualslivinginareasaffectedbywar andcivilunrestareatespeciallyhighrisk

Duetotheglobalpoliticalpressureonpharmaceuticalcompanies,potentialnewhealthcarereformscouldaffectprices,reimbursement,access,andincreaseGross-to-Netcosts ThisriskisconnectedtothepotentialnegativeimpactthatLundbeck’s pricingcouldhaveonadequateaccesstohealth.

AnydisruptionsinLundbeck'sprocessestomanageproductsafetyandqualitycouldleadtopatientstakingunsuitablemedicationorforgoingbeneficialtreatments Allpatientsaredependentonaccurateinformationtoensuresafeuseofmedicines.

Pharmacovigilanceisessentialformonitoringthesafetyandeffectivenessofourpharmaceuticalproductsthroughouttheir lifecycle.Anydisruptionsinthissystemcanleadtodelayedidentificationofadverseevents,regulatorynon-compliance,reputationaldamage,andfinanciallosses.Thisriskisconnectedtothepotentialnegativeimpactofproductsafetyandquality

Withoutresponsibleandethicalmarketingpractices,patientsandhealthcareprofessionalscouldbevulnerabletoreceiving misleadingorunsafeinformation.Thiscouldleadtomisuseordistrustofmedicines,affectpatients’economicandphysical welfare,anddistorthealthcarepriorities.

Allmarketsinwhich Lundbeckoperates Healthcaresystems

R&D,production,quality, andpharmacovigilance functions -

Pharmacovigilance functions -

Commercial

and marketing

Customersand healthcare professionals

Impacts,risksandopportunities(3of3)1

Businessethics Potentialnegative impact

Failuretopreventcorruptionandbriberycan,intheworstcases,leadtoimproperprescriptionsforpatientsanddistrustin theoverallhealthcaresystem.Anypotentialfailuresintheprotectionofwhistleblowerscouldresultinthemfacingretaliation, adverseimpacts,orlitigation.

Businessethics andCodeofConductbreach Financialrisk

Responsible sourcing Potential negativeimpact

Animalwelfare

Actualnegative impact

Interactionswithhealthcareprofessionals(HCPs)andpublicofficialsposecorruptionandbriberyrisks,potentiallyresultingin fines,disgorgement,debarment,contractbreaches,orreputationalharm.Additionally,potentialbreachesofcompetition lawscanleadtosubstantialfinesandreputationaldamage.

InadequateresponsiblesourcingpracticescancontributetonegativeimpactsonpeopleandtheenvironmentinLundbeck's valuechainandacrossLundbeck'scategoriesofgoodspurchasedglobally.Themostsignificantpotentialimpactisrelatedto partieswhoactonLundbeck’sbehalfandcannegativelyimpactpatients'rightsandaccesstotreatment.

Aspartofthedevelopmentofnewtreatments,Lundbeckisobligedtoconducttestsonanimalsbeforeuseinhumans.Neglectingpropercaretominimizeadverseimpactsthatanimalsmayexperienceduringpharmaceuticalresearchcanaffect theirwelfare.

Partners,thirdpartiesactingonLundbeck's behalf

Suppliers,thirdpartiesactingonLundbeck’s behalf

Commercialoperationsand marketingin particular Distribution,customers andhealthcare professionals

Commercialoperationsand marketingin particular -

Corporatefunctionsat Lundbeckheadquarters andsubsidiaries -

Contractresearchorganizationsconductingtrialson behalfofLundbeck R&D -

DMAmethodology

DMAkeyassumptions

Scopeandvaluechain

Lundbeck’sDMAreflectsthevaluechainperspective,throughtheassessmentofimpacts,risks, andopportunities(IROs)arisingfromownoperations,suppliersintheupstreamvaluechain,as wellascustomers,patientsandcommunitiesinthedownstreamvaluechain.Furtherdetailson Lundbeck’svaluechaincanbefoundintheBusinessandStrategysection(seepage18).

Sustainabilityduediligenceandstakeholderengagement

TheperspectiveofouraffectedstakeholdersandreadersoftheSustainabilityStatementisincorporatedintotheassessmentbyproxythroughtheknowledgeofourinternalsubjectmatterexperts.Theseexpertsspanacrosstheorganizationandareresponsibleforengagingwithaffected externalstakeholdersaspartoftheirdailyfunctions.Inaddition,theirroleencompassesgatheringandunderstandingthelatestscientificevidenceandresearchfromproxystakeholderssuch asenvironmentalorsocialorganizations,aswellascapturingrelevantindustrytrendsanddevelopmentswithintheirsustainabilityareas(i.e.,Environment,SocialandGovernance).

Lundbeck’sDMAiscontinuouslyinformedbyitsSustainabilityDueDiligenceprocesses(page63) andtheEnterpriseRiskManagementframework(pages50-52).Inaddition,existingcommunicationchannelswithexternalstakeholdersenhancetheinclusionofthevaluechainperspectives intoourassessmentofimpacts,risks,andopportunities.

DMAstep-by-stepprocess

Lundbeck’sDMAisacross-functionalanddynamicprocesswhichrequiresadeepunderstandingofourbusinessmodel,valuechain,andbusinessrelationships.Everyyear,Lundbeck’sDMAprocessconsistsofthefollowingfivesteps:

1)IdentifykeystakeholdersandcreatealonglistofsustainabilitymattersandrelatedIROs

Lundbeckannuallyrevisesitsunderstandingofourbusinessmodelandvaluechain.Thisentailsthemapping ofinternalstakeholdersandkeyexternalstakeholdersintheupstreamanddownstreamvaluechain.

TodevelopthelistofrelevantsustainabilitymatterstobeassessedinourDMAprocess,Lundbeckconsiders severalinternalandexternalsources,includingthelistofsustainabilitymatterscontainedwithinESRS2ApplicationRequirement(AR)16,industry-specificESGbenchmarks(i.e.,SASBandMSCI),aswellasinternalanalyses,suchasLundbeck’slegacymaterialityassessment.

Thefinallistofsustainabilitymattersisdevelopedandvalidatedbyinternalsubjectmatterexperts,whoare responsibleforidentifyinganyrelatedimpacts,risks,andopportunities,tobeassessedfromanimpactand financialmaterialityperspective.

2)Impactmaterialityassessment

Theimpactmaterialityassessmententailstheevaluationofanyactualorpotential,positiveornegativeimpactsonpeopleortheenvironmentovertheshort,mid,andlongterm.Lundbeck’sinternalsubjectmatter expertsareresponsibleforassessingtheidentifiedimpactsrelatedtotheirsustainabilityareaofexpertise.In practice,thistakesplacethroughacombinationofworkshops,research,analyses,andengagementswith externalconsultants.Asthesubjectmatterexpertsareresponsibleforgainingknowledgeaboutstakeholder viewsintheirareaofexpertiseaspartoftheireverydayoperations,theyareabletoincorporatetheseviews intotheimpactassessment.

Impactmethodology

Lundbeck’simpactscoringmethodologyisdevelopedinaccordancewithESRS1(section3.4).Ourimpact scoringrangesfromonetofive,whereonecorrespondstothelowestimpact.Anyactualimpactsareassessedbasedontheirseverity,whilepotentialimpactsarebasedonseverityandlikelihoodofoccurrence.In linewiththeOECDDueDiligenceGuidanceforResponsibleBusinessConductandESRS2,severityisgiven higherweightoverlikelihoodforpotentialhumanrightsimpacts.Severityisderivedfromtheassessmentof theintensityoftheimpact(i.e.,scale)anditsoutreach(i.e.,scope)forpositiveimpacts,whereasnegativeimpactsareassessedbasedonscale,scopeandtheabilitytoremediatetheadverseeffect(i.e.,irremediable character).

Sustainabilitymattersaredeemedmaterialforreportingwheneverarelatedimpactscoresgreaterthanor equaltofouroutoffive.Asaninternalcontrolprocedure,anysustainabilitymatterswhosefinalscorefallsat threeoutoffivearefurtherinvestigatedwithinternalsubjectmatterexpertstoconfirmthevalidityoftheresult.Thefinalconclusionsfromtheimpactassessmentareconsolidatedandusedasabasisforthefinancial materialityassessmenttoreflectrelevantconnectionsanddependencies.

3)Financialmaterialityassessment

Thefinancialmaterialityassessmenttakesanoutside-inperspective,therebyfocusingonanyrisksandopportunitiesrelatedtosustainabilitymatterswhichcouldaffectLundbeck’sfinancialposition,performance,or cashflows,overtheshort,mid,andlongterm.

Usingtheinsightsfromtheimpactmaterialityassessmentasthestartingpoint,Lundbeck’sfinancialandESG reportingexpertsprovideguidancetotheinternalsubjectmattersexpertstoidentifyandassesssustainability-relatedrisksandopportunities.Moreover,throughtheperiodicreviewoftheenterpriseriskmanagement (ERM)register(seetoprisksonpage52)andtheinclusionofrelevantDMAriskstherein,Lundbeckensures consistencyacrossourriskmanagementprocesses.

Financialassessmentmethodology

Lundbeck’sfinancialmaterialitymethodologyisdesignedinaccordancewithESRS1(section3.5).Ourfinancialscoringrangesfromonetofive,whereonecorrespondstothelowesteffect.Thefirststeptoourfinancial materialityassessmentistheevaluationofexternalfactorswhichcangiverisetoariskoropportunity.These canincludeanyadverseorpositiveexternaleventssuchasupcomingregulationsorchangesincustomerdemand.

Afteridentifyingariskoropportunityrelatedtoasustainabilitymatter,Lundbeckassessesitsfinancialmagnitudeandrelatedlikelihoodofoccurrence.TheformerisassessedintermsofEBITimpact(DKKm)(ranging fromonetofive),consistentwithLundbeck’sERM,andconsideringfinancialeffectsonLundbeck’sfinancial position,financialperformance,cashflows,accesstofinanceorcostofcapitalovertheshort,mid,orlong term.Thelatterisassessedintermsoffrequencyofoccurrence.

Sustainabilitymattersaredeemedmaterialfromafinancialperspectivewheneverariskoropportunityscores aboveoneinfinancialmagnitude.Thisthresholdisdefinedbasedonthefinancialmaterialityamountusedin Lundbeck’sFinancialStatements.

4)Consolidation

Theresultsfromtheimpactandfinancialmaterialityassessmentareconsolidatedtoobtainanoverviewof Lundbeck’simpacts,risksandopportunities.Thematerialityconclusionsaredynamicallymappedagainstthe longlistofsustainabilitymattersidentifiedinsteponetoidentifythematerialtopicsforreporting.Anysustainabilitymatterisdeemedmaterialforreportingwheneveritismaterialfromanimpactmaterialityperspective,afinancialmaterialityperspective,orboth.

5)Stakeholderandmanagementvalidation

ForLundbeck,continuousstakeholderengagementiskeytoensuretheaccuracy,completeness,andrelevanceofourDMAresults.Accordingly,asaninternalcontrolprocedure,additionalresourcesarededicatedto checkthematerialityconclusions,includingad-hocresearch,benchmarkanalyses,aswellasfollow-updiscussionsbetweentopicalsubjectmatterexpertsandESGreportingexperts.

Thevalidatedresultsarepresentedtotheleadershipteamforfinalendorsement,astheculminationofthe closeengagementanddiscussionsthroughouttheDMAprocess.AtLundbeck,allkeydecisionsrelatedtothe DMAapproachandresultsareperiodicallyapprovedbytheExecutiveManagement,theAuditCommitteeand theBoardofDirectors,asfurtherdescribedintheGovernanceFrameworksection(seepage51).

Deep-diveintotopicalDMAapproach

InlinewiththegeneralDMAapproach,thefollowingsectionsprovideadditionaldetailonthespecificscope, methodologies,andsourcesusedtoidentifyandassessmaterialimpacts,risks,andopportunitiesforenvironmental,social,andgovernancetopics.

Environment

Lundbeck’senvironmentalsubjectmatterexpertsconsiderbusinessactivitiesacrossownoperationsaswell astheupstreamanddownstreamvaluechain.Thisisdonebyscreeninglocationswhereimpacts,risks,or opportunitiesaremostconcentratedorlikelytoarise.

Asystematicapproachfortheassessmentofenvironmentalimpactsisimplementedthroughtheuseofscoringkeysbasedontopic-specificthresholdsderivedfromrelevanttools,frameworks,andregulations.These scoringkeysweredevelopedbyLundbeck’ssubjectmatterexpertsincollaborationwithexternalconsultants andareannuallyrevised.

Theuseoftoolsandexternalresourcesensuresaconsistentanddata-drivenscreeningapproach.Thesetools andresourcesincludethe‘WorldResourceInstituteAqueductWaterRiskAtlas’tool,andthe‘WaterImpact Index’byCDPtoassesswater-relatedimpacts(i.e.,ESRSE3)andthe‘WWFRiskFilterSuite’tooltoassessbiodiversity-relatedimpacts,dependencies,andphysicalandsystemicrisks(i.e.,ESRSE4).Whererelevant,externalframeworksandenvironmentalregulatoryrequirementsareusedtoguidetheassessmentsuchasthe ‘EUWasteHierarchy’andthe‘EUCriticalRawMaterialslist’forresource-useandcirculareconomy(i.e.,ESRS E5),aswellaslocallymandatedlegalpollutionlimitsatproductionsites(i.e.,ESRSE2).

InlinewiththeDMAresults,nosubstantialnegativeimpactwasidentifiedinrelationtowater,affectedcommunities,ecosystemservices,orbiodiversitysensitiveareas.Lundbeckcontinuestocloselymonitoranyimpactsonwater,affectedcommunitiesandbiodiversityandcooperatewithauthoritieswhereapplicable.For climatechange(i.e.,ESRSE1),aclimateriskassessmentandscenarioanalysisareconducted,asfurther specifiedonpages79-80.

Social

Toidentifyanyimpacts,risksandopportunitiesrelatedtoemployees,communitiesandpatients,Lundbeck’s socialsubjectmatterexpertsconductdesktopanalyses,informedbypeopledata,policies,CorporateSocial Responsibility(CSR)databases,literature,andregulations.Thepotentialimpactsonpeoplederivingfrom Lundbeck’sactivities,businessrelationshipsandproductsareassessedforallworkersinownoperations(i.e., ESRSS1)andacrossthevaluechain(i.e.,ESRSS2),affectedcommunities(i.e.,ESRSS3),aswellasconsumers andend-users(i.e.,ESRSS4).

Governance

Lundbeck’scorporatesubjectmatterexpertsassessbusinessconductmatters(i.e.,ESRSG1)throughdesktop analyses,guidedbyourCodeofConduct,existingpoliciesandchannelsforhandlingconcerns,aswellas applicableregulations.Duetotheirglobalscope,businessconductissueswereassessedacrossLundbeck’s valuechain,withafocusonhigh-risklocations,businessactivitiesandinteractions.

Basisforpreparation

Lundbeck’sSustainabilityStatementispreparedinaccordancewiththeCorporateSustainabilityReporting Directive(CSRD)andtheEuropeanSustainabilityReportingStandards(ESRS).TheSustainabilityStatement wasapprovedbytheBoardofDirectorsandauthorizedforissueonthe5February2025.

ThemetricsdisclosedintheSustainabilityStatementincludeconsolidateddatafromtheparentcompany,H. LundbeckA/S,andthesubsidiaries.TheSustainabilityStatementisconsolidatedfollowingtheGroup’saccountingpoliciesdisclosedinitsconsolidatedFinancialStatements,unlessotherwisespecifiedintheaccountingpolicieswithineachtopicalESRSdisclosure.Lundbeckhasdefineditsoperationalcontrolinaccordance withtheESRS,encompassingtheparentcompanyanditssubsidiaries.Intheeventofacquisitionsordivestments,theSustainabilityStatementisfollowingthesameprinciplesastheFinancialStatements.Inadditionto complyingwiththeDanishFinancialStatementsDisclosureAct(sections99a,99d,and107d)andtheEUTaxonomyRegulation(article8),Lundbeckreportsundervarioussustainabilityframeworks,includingtheUnited NationsGlobalCompact(UNGC),theScienceBasedTargetsInitiative(SBTi),theCarbonDisclosureProject (CDP),theUNSustainableDevelopmentGoals(SDGs),andtheUKModernSlaveryAct.Allmaterialinformation presentedinthisreportisidentifiedbasedontheoutcomeofLundbeck’s2024DoubleMaterialityAssessment (DMA),coveringownoperationsaswellastheupstreamanddownstreamvaluechain.Detailedinformation onourDMAresultsandmethodologycanbefoundonpages64-70.

Changesinpreparation

Comparativefiguresforthemetrics EnergyConsumptionandMix’,‘Grossscopes1,2,and3,TotalGHGEmissions’,‘Waste’,aswellasthe‘OPEXEUTaxonomy’havebeenrestatedcomparedto2023toreflecttheupdateof theaccountingpolicieswiththeimplementationoftheCSRDandESRSrequirements,asdescribedinthefootnotefortherespectivemetrics.

Comparativefigures

AsthisisthefirstyearofpreparingtheSustainabilityStatementinaccordancewiththeESRS,Lundbeckhas notincludedcomparativefigures,exceptforspecificmetricsthatwerepreviouslyreportedinLundbeck’s 2023SustainabilityReport.Thesemetricsinclude:Energyconsumptionandmix,Grossscopes1,2,3andtotal GHGemissions,Waste,Genderdistributionattopmanagement,DonatedTreatmentsinLMICs,ComplianceHotline Reports,CodeofConduct,BusinessEthicsDuediligence,andInternalandexternalaudits.

Key

estimatesandassumptions

InpreparingtheSustainabilityStatement,Managementhasmadeestimatesandjudgementthataffectthe applicationoftheaccountingpoliciesandthereportedfiguresforthesustainabilitymetrics.Theactualresultsmaydifferfromtheseestimates.Estimatesandunderlyingassumptionsarereviewedonanongoing basis.Lundbeck’sManagementbelievesthatthefollowingestimates,assumptionsandjudgementsaresignificantfortheSustainabilityStatements.

Principal accounting policy

Scope3GHGemissions:Cat.1:Purchasedgoodsand services

Keyestimates,assumptionsandjudgements

Patientsreached

Estimatingofemissionswheresupplierdataisunavailableisbased onemissionfactorsforfinancialexpendituresandpurchasedproducts.Lundbeckincludesvaluechainestimationsfromindirectsources intheaccountingofGrossindirect(Scope3)GHGemissions,asspecifiedintheaccountingpolicy.Lundbeckiscontinuouslyworkingtoenhancethequalityofvaluechaindata.

Estimatingthenumberofpatientspotentiallyexposedtoaspecific Lundbeckdrugortreatmentoveraone-yearperiod,asspecifiedin theaccountingpolicy.

Donatedtreatment inlow,middleincomecountries

Estimatingthenumberofpatientspotentiallyreachedthrough Lundbeck’smedicinedonationprogram overaone-yearperiod,as specifiedintheaccountingpolicy.

pay ratio

Genderpay gap

Themedianemployeeisidentifiedbasedonbasesalary,afterwhich theirtotalremunerationisusedtocalculatetheCEOpayratio,as specifiedintheaccountingpolicy.

Annualbasepaylevelsareusedinthiscalculationduetolimiteddata availabilityforhourlypaylevels,asspecifiedintheaccountingpolicy.

Sustainabilityduediligence

HowourkeystakeholdersinformLundbeck’sstrategyandbusinessmodel

Patients

Healthcare professionals

• Patientfeedbacksessions

• ‘Letthepatientspeak’eventstogatherinsightsforinnovation andawareness.

• Surveysandcollectionsofpatientexperiencedata.

• Educationforhealthcareprofessionals

• Compliancewithglobalprocedures,laws,andindustryregulations.

• Documentationofthevalueofour medicines.

Partners

Investorsand shareholders

• Commercialpartnershipswithothercompaniestodevelopandmarket medicines,e.g.contractresearchorganizationsconductingresearchstudiesandestablishingevidencefornewdrugcandidates.

• Engagementstoimprovehealthequityincludinglong-termpartnershipswith globalorganizationssuchasNGOs,academia,and patientadvocacygroups.

• Ongoingcommunicationviaroadshows,meetings,andconferences.

• Webcastingofgeneralmeetingsandaccesstoreports

• GeneralAssembly.

• Regularsurveys(i.e.,TheOurVoice).

• Dialoguesonwellbeingandpersonaldevelopment

• Workcouncils.

Employees

Workersinthe valuechain

• Employee-electedboardmembers.

• ComplianceHotline

• Ombudsmen.

• On-sitesupplierauditsandassessments.

• ComplianceHotline.

• PatientperspectivesincludedinR&D,trialdesigns,andevaluationstrategies

• Improvedtreatments.

• Improvedpatientoutcomes

• Operationalexcellenceandcompliancewithregulations

• Increasedaccesstotreatment.

• Promotionofequitableaccessibility

• Climateconsiderationsintegratedintoclinicaltrials.

• Improvedalignmentofstrategywith shareholdersviewsand feedback

• Actionplansforimprovement.

• Implementationofnewprocesses.

• AddressingconcernsraisedaboutpotentialbreachofCodeof Conduct

Lundbeck'ssustainabilityduediligenceprocesses1

Asaglobalpharmaceuticalcompany,Lundbeckoperatesinhighlymonitoredandregulatedenvironments. Thisentailscompliancewithpharmaceuticalregulations,whichmandatecertainduediligenceprocedures,includinghowtomanagethepotentialnegativeimpactsonpatients,people,andtheenvironment. TheseprocessesencompasstheHealth,Safety,and EnvironmentManagementSystem,theProductQualityManagement,andProductandPatientSafetyprocessesandnumerousother‘GoodPractice (GxP)processes.Engagementtounderstandtheinterestsand viewsofkeystakeholdersispartofmanyoftheseprocesses,whichweusetoinformourstrategyandbusinessmodel.

• Actionplanswithcorrectiveactionsforsuppliersandthirdparties

• Addressingconcernsraisedaboutpotentiallabourorhuman rightsimpacts

Whilemultipleoperationalduediligenceprocesses areembeddedintheworkofkeybusinessfunctions, asspecifiedinourtopicalESRSdisclosures,Lundbeck hasidentifiedtheactionsneededtoadvanceotheraspectsofsustainabilityduediligenceinthecoming yearsinpreparationforcompliancewiththeCorporateSustainabilityDueDiligenceDirective(CSDDD).

Climatechange

Lundbeckaimsfornet-zeroemissionsby2050tomitigate ourcarbonfootprintandtherelatedriskstoourbusiness.

furtherdetailsatpage65.

Lundbeck’sTransitionPlan

Lundbeckiscommittedtomakingthenecessary reductionsinemissionsacrosstheentirevaluechain tomitigatethenegativeimpactsofclimatechange andtoachieveclimateneutralityby2050.ThiscommitmentissupportedbyourTransitionPlan(link).

Launchedin2023,theTransitionPlanoutlines Lundbeck’sGHGemissionreductiontargets(see page76),whichareapprovedbytheScienceBased Targetsinitiative(SBTi)andarecompatiblewithlimitingglobalwarmingto1.5℃.

Decarbonizationlevers

Lundbeckhasidentifiedfivemaindecarbonization leverstoachieveclimateneutrality,namely:

IntheTransitionPlan,eachleverisdescribedindetail,includingtheactionsthatLundbeckplansto takeineachareatoachieve90%reductionofemissionsby2050,withtheremaining10%ofemissions tobeneutralizedthroughcarbonremovals.Carbon creditswillbeusedexclusivelyforneutralizingresidualemissionsorfinancingadditionalclimatemitigationeffortsbeyondLundbeck’sscience-basedtargets.ThesewillnotcountasemissionreductionstowardsLundbeck’snear-orlong-termtargetsandwill berecordedseparatelyinthecarboninventoryto avoiddoublecounting.Onlycarboncreditscertified torecognizedqualitystandardswillbeutilized,with validcertificationsdisclosedinourreporting.

TheTransitionPlanisavailableat www.lundbeck.com,andtheplannedactionsitentailsarefurtherdetailedonpage76.

TransitionPlanembeddedinourstrategy

WiththeendorsementofLundbeck’sClimateSteeringCommitteeandtheExecutiveManagement, alongwiththeBoardofDirectors’oversightonprogress,theTransitionPlandrivesdecisionsoninvestmentsrelatedtoachievingLundbeck’sclimatetargets.ToensurethealignmentoftheTransitionPlan withLundbeck’soverallbusinessstrategy,thestatus ofthetargetsandactionsisreportedtotheClimate SteeringCommitteethreetimesayearandquarterly toExecutiveManagement.Aspartoftheannual budgetplanningprocess,eachinitiativeinthe

TransitionPlanispresentedand,whererelevant,approvedbytheClimateSteeringCommittee.

Ourapproach(policies)

Lundbeck’sPositiononClimateChange(link)andthe Health,SafetyandEnvironment(HSE)Policy(link) constituteLundbeck’scorporateclimatepolicy.The PositiononClimatecoversLundbeck’scommitment toclimateaction,detailingthefutureclimate-related challengesandopportunitiesLundbeckintendsto address,whiletheHSEPolicyincludes,amongother topics,theactionsLundbecktakestoprotecttheenvironment(furtherdetailsontheHSEPolicycanbe foundonpage86).Bothdocumentsaddress Lundbeck’sglobaloperationsandcoveritsactivities toaddressclimateissuesinthevaluechain.

Lundbeck’sclimatepolicyaddresses:

• Ambitionsforreducingscope1,2,and3GHG emissions.

• ImplementationofTransitionPlantowardsnet zeroemissions,addressingclimatechangemitigation.

• Increasingtheuseofrenewableenergy,especially throughpowerpurchaseagreements.

• Applicationofenergyefficienttechnology,particularlyinchemicalandpharmaceuticalproduction.

Throughtheimplementationofitsclimatepolicy, LundbecksupportstheintentionsoftheEuropean FederationofPharmaceuticalIndustriesandAssociations’whitepaperonclimateandtheUN

SustainableDevelopmentGoal(SDG)13(ClimateAction).Inaddition,LundbeckfollowstheGHGProtocol whenpreparingGHGinventoryandcalculations,and SBTiguidancewhendevelopingtargets.

Lundbeck’sExecutiveManagementhastheoverall responsibilityfortheclimatepolicy,supportedby theClimateSteeringCommittee.TheCorporate Health,SafetyandEnvironmentdepartmentisresponsibleforreviewingandupdatingLundbeck’sclimatepolicy,therebyincludingthelatestscientific knowledgeandexpectationsfromrelevantexternal stakeholderssuchastheEU,SBTi,andotherclimate NGOs,investors,andlocalauthorities

Theclimatepolicydocumentsareaccessibleon Lundbeck’swebsiteandontheglobalintranet. LundbeckisnotexcludedfromtheEUParis-aligned Benchmarks.In2024,Lundbeckhasnotconducteda qualitativeassessmentofthepotentiallocked-in GHGemissionsnorhasLundbeckpursuedplansfor EUTaxonomyalignment.Theseareaswillbesubject tofurtherinvestigationinthefuture.

Actions

TomeettheobjectivesofLundbeck’sclimatepolicy andTransitionPlan,Lundbeckactsinlinewithfive identifieddecarbonizationlevers:

Energyinownoperations (Scope1&2)

Since2006,Lundbeckhasminimizedenergyconsumptionbyoptimizingitsproceduresandmodernizingitsequipment.InDenmark,thishasincluded using100%renewableelectricitysinceJanuary2022 aswellasprogressivelyswitchingfromfossiltorenewablefuels1.Inthebeginningof2025,Lundbeck willsignapowerpurchaseagreementsecuringrenewableelectricityatourproductionsiteinItaly.For theremainingEuropeansites,includingsalessubsidiaries,Lundbeckguaranteesoforiginhavesecured100%useofrenewableelectricityasofJanuary 2025.Gradually,allLundbecksitesworldwide,includingsubsidiaries,willbesuppliedbyrenewable energysources,thusreducingemissionsby99%in 2050comparedto2019.

Sustainabilitysourcing (Scope3)

Scope3emissionsfrompurchasedgoodsandservices(e.g.,clinicaltrials,consultancies,marketing, andmachinery)arethelargestcontributorsto Lundbeck’scarbonfootprint.Therefore,collaborationwithsuppliersaroundcarbonreductionsis

crucialtoachieveLundbeck’sclimatetargets. Throughcontractualcommitmentstouserenewable electricityinoperationsortoestablishscience-based targets,Lundbeckencouragesitssupplierstoreduce theiremissionsandtodeliveremissiondatato Lundbeckannually,whichwillimproveemissionscalculationsandreportingprocess.Asof2024, Lundbeckhassignedagreementswith51suppliers touserenewableelectricity.Itisestimatedthat, whenallLundbeck’ssuppliersofpurchasedgoods andserviceshavemadeandfulfilledcontractual commitmentstouserenewableenergy,indirect emissionswillbereducedby66%in2050.

Optimizationandcircularity (Scope3)

Lundbeckprocuresrawmaterialsandcomponents fromaroundtheworldforuseinproductionatitsfacilities.Toreducetheindirectemissions(scope3) thatresultfromthisproductinput,Lundbeckfollows greenchemistryprincipleswhendesigningandoptimizingnewchemicalsynthesisandactstoreduce rawmaterialconsumption,optimizeyield,andsubstitutetolesshazardouschemicals.Accordingly, Lundbeckrecyclessolventsusedinchemicalproduction,thusreducingtheamountofnewprocuredsolventsandtheirrelatedindirectcarbonemissions.In 2024,Lundbeckrecycled62%oforganicsolvents usedinchemicalproductionthatweresuitedforrecovery.In2023,Lundbeckalsoapprovedaninvestmentinanewrecyclingunitthatwillincreasethe

solventrecyclingpercentage,tosupportourambitiontorecycleapproximately85%ofsolventsusedin chemicalproductionby2030.Further,whendevelopingnewproducts,Lundbeckexplorespossibilities withineco-designandcircularity.Inaddition,the supplierengagementinitiativeasspecifiedunder “Sustainablesourcing”willcontributetofurtherreductions.Byimplementingalltheseinitiatives,scope 3GHGemissionsfrompurchaseofrawmaterialsto productionareexpectedtobereducedby75%by 2050.

Greeninglogistics (Scope3)

Lundbeckisintheprocessofreducingscope3emissionsfromtheupstreamtransportationofgoods andservicesandfromthedownstreamdistribution ofproducts.Thisismainlyaccomplishedbytransitioningfromairbornetoseabornetransportation. Further,assuppliersgraduallyshifttogreenertransportationsolutionspoweredbyelectricityorsustainablefuels,Lundbeckiscommittedtochoosingthese lesscarbon-intensiveoptions.From2019to2024, Lundbeckhasmanagedtoreduceemissionsfrom distributionby33%andexpectstoreachareduction ofatleast36%by2050.

Cleanertravel (Scope1&scope3)

EmissionsreductionsrelatedtoLundbeck’scarfleet andbusinesstravelaretargetedbygraduallytransitioningtomoreenergyefficient-cars,includingElectricalVehicles(EVs),andbydevelopingtravelpolicies thatsupportgreenertravel.Forinstance,Lundbeck hasinitiatedatravelpolicythatencouragesitsemployeestominimizetravelbyleveragingdigitalsolutionstostayconnected,aswellastomovetowards lesscarbon-intensiveoptionswhentraveling.Additionally,Lundbeckpromotesclimateawarenessregardingtravelbysettingtargetsandmonitoring traveldatawherepossible.From2019to2024,emissionsfromLundbeck’scarfleetandbusinesstravel havebeenreducedby37%and12%,respectively.By 2050,theidentifiedinitiativesareexpectedtoreduce relatedemissionsbyatleast75%.

Towardszeroemissions

100%renewableelectricity usedintheEU

100%renewableelectricity usedintheUS

Emissionsfrombusiness travelreducedby25%

Airlogisticsmovedtosea logisticsonlongestroutes

Electricvehiclesexclusively usedinDKfleetandmin. 50%usedintheEUand theUS Sustainablefuelusedinall airlogistics

Electricvehiclesexclusively usedintheEUandtheUS fleetsandmin.30%inrest ofworld Sustainablefuelusedin 50%ofsealogistics

Renewableelectricity implementedworldwide Emissionsfrombusiness travelreducedby40%

Renewableenergy implementedworldwide Sustainablefuelusedinall air,sea,androadlogistics

Sustainablefuelusedinall sealogistics

Renewableenergyusedby allsuppliers

Sustainablefuelusedin 50%ofairlogistics

Renewableelectricityused bytop50suppliers

Renewableelectricityused byallsuppliers

Upscaleknownactivities andexplorenewinitiatives Offsetresidualemissionsbycarbonremovals Renewableelectricityused bytop300suppliers Emissionsfrompackaging andfinishedgoods reducedby60%

85%ofsolventsrecycledin chemicalproduction

By2025 By2030

By2035

By2050

By2040

Targets

Inthebeginningof2024,Lundbeckhadtwo1.5°C alignedtargets1derivingfromourSustainability Strategy.

Duringtheyear,inlinewiththe1.5°Cbusinessambitionpledgeguidance,LundbeckreceivedSBTiapprovalforanewsetofNet-Zerotargets-seetable below.Furthermore,withtheimplementationof theESRSrequirements2,anadditionalsetoftarget valuescoveringtheperiod2019-2030wasdefined (seeE1-6table,page82).

In2024,scope1&2emissionshavedecreasedby 38%comparedto2019.ThismeansthatLundbeck

Net-ZeroSBTi-approvedtargets remainsontracktomeetitsscope1&2Net-Zero SBTi-approvedtarget.Conversely,ourscope3emissionshaveincreasedby18%comparedto2019.Additionalinitiativesonsupplierengagementand businesstravelarebeingevaluatedtoreducescope 3emissions.

Lundbeck’stargetsareupdatedatleasteveryfive yearsinlinewiththeSBTiguidance.Progress againstourtargetsistrackedquarterlyandispresentedtotheClimateSteeringCommitteethree timesperyear.

TransitionPlanmilestones

Progressisconsistentlybeingmadetowardsthe milestonesoutlinedinourTransitionPlan.Lundbeck remainsontracktomeetthemajorityofits2025 milestones.

Forscope1&2emissions,Lundbeckanticipates achievingtheexpectedemissionreductions.While mostmilestonesrelatedtoscope3emissionsareexpectedtobemet,theoverallreductionofthese emissionsisnotprogressingasquicklyasanticipated.

Lundbeckexpectstomeetits2025milestoneof 100%renewableelectricityusedintheEU(energyin ownoperations).Emissionsfrombusinesstravelare reducedby12%comparedtobaseline,correspond-ingtoaslightdelayinexpectedprogress(cleaner travel).Allpossiblelogisticrouteshavebeenmoved toseaandtheuseofsustainablefuelisbeinginvestigated(greeninglogistics).Additionally,with51top supplierssigningagreementsforrenewableelectricityuseoutof115suppliersintotal,Lundbeckhas achieveditsexpectedSustainableSourcingmilestone.Thisinitiativehassuccessfullydecoupled emissionsfromspending.However,thedecoupling hasnotbeensufficienttooffsetthegrowthin Lundbeck’sbusinesssofar.

Basisfortargetsetting

Lundbeck’stargetshavebeenverifiedandapproved bySBTiandfollowanabsolutecontractionmethod, inaccordancewiththeSBTiguidance.Asectoraldecarbonizationpathwayforthepharmaceuticalindustryisnotfollowed,asthereisnotyetonedefinedby SBTi.Furthermore,thetargetscoversevengreenhousegasesincludedintheKyotoProtocol(carbon dioxide[CO2],methane[CH4],nitrousoxide[N2O], hydrofluorocarbons[HFCs],perfluorocarbons[PFCs], sulfurhexafluoride[SF6],andnitrogentrifluoride [NF3]).

Everyyear,Lundbeckrevisesthecarbonfootprint modelusedforcalculatingemissionstoimprovethe validityandqualityofourcarboncalculations,which areusedfortrackingprogresstowardstargets.This enablestheincorporationofrelevantupdatesin emissionscalculations,emissionfactors,supplier data,andbaselinerecalculation.Accordingtothe SBTiguidelines,alltargetsaresetagainstthebaselineyear2019,asthefinancialyearprecedingthe periodinwhichthetargetsweredeveloped.

FurtherdetailsonthecontributionsofthedecarbonizationleverstowardsLundbeck’sGHGemissionsreductiontargetsarespecifiedonpage76.

Assessingclimaterisks

Processtoidentifyandassessimpacts,risks,and opportunities

AtLundbeck,severalinternalprocessesenablethe identificationofactualandpotentialclimate-related impacts,risks,andopportunities.Thisincludesthe ongoingassessmentofemissionsandpotential emissionssourcesinownoperationsandacrossthe valuechain,theclimatescenarioanalysis,theannual BusinessImpactAnalysis(BIA)report(seepage80) foridentifyingphysicalclimate-relatedrisks,and continuousinternalevaluationandidentificationof opportunitiesbysubjectmatterexperts.

Scenarioanalysis

Ascenarioanalysisisperformedfortwoclimatescenariostoidentifytransitionalandphysicalrisks.The scenariostakeintoconsiderationadiverserangeof factorssuchascarbonpricing,fuelavailability,policy regulation,technology,reputation,productionand supplychaindisruptions,physicaldamagetoassets, aswellaschangesinproductdemand.Theanalysis isbasedonguidancefromtheTaskForceonClimate-RelatedFinancialDisclosures(TCFD)andthe CarbonDisclosureProject(CDP).

Thetimehorizonsofthescenarioanalysisforboth physicalandtransitionrisksspan1-10years,thereby includingshort,mid,andlongterms.Bycovering bothanet-zero(i.e.,NZE2050)and‘businessas usual’(i.e.,RepresentativeConcentrationPathway (RCP8.5)scenarios,plausiblerisksanduncertainties

arecovered.ThetimehorizonsalignwithLundbeck’s climatetargetsandthefinancialplanninghorizon, andsupporttheclimate-relatedassumptionsmade intheFinancialStatements.

Resilienceanalysis

Aresilienceanalysiswasconductedin2024basedon thescenarioanalysis.Thescopeoftheresilience analysisincludesLundbeck’sownoperationsand valuechainandusestimehorizonsalignedwith boththescenarioanalysisandtheclimatetargets. Whilethereiscurrentlylimiteddataontheuppertiersofthevaluechain,potentiallyleadingtoreduced representationofrelatedphysicalandtransitional risks,ourunderstandingoftheupstreamvaluechain isaimedtobeincreasedovertime.Lundbeckuses theresultsoftheresilienceanalysistointegrate milestonesintotheTransitionPlan,adaptstrategy, andplanmitigatingactions.

Transitionalrisks

TheInternationalEnergyAgency’sNetZeroEmissionsby2050Scenario(NZE2050)showsapathway toachievingnet-zeroby2050andlimitingglobal temperatureriseto1.5°C.TheNZE2050isusedto identifyclimate-relatedtransitioneventsalong Lundbeck’sownoperationsandvaluechain,and howthesecouldresultintransitionalrisksandopportunities.Transitioneventsareidentifiedbasedon reputational,financial,market,orregulatoryrisks andopportunitiesatbothcompanyandassetlevel. Theidentificationoftransitionalrisksisalso

supportedbyLundbeck’squarterlyprocesstoidentifyemerginglegislationandsocialandreputational trends.

Assetsandbusinessactivitiesareassessedbasedon theirexposuretotheidentifiedtransitionevents, takingintoconsiderationlikelihood,magnitude,and duration.Specificassetsorbusinessactivitiesthat areincompatiblewithaclimate-neutraleconomyor needsignificanteffortstotransitionhavenotbeen identified.

UndertheNZEscenario,carbonpricingwillbestrategicallyimportant,fossilfuelusewilldecreasesignificantly,andrenewableenergydeploymentwill rapidlyincrease.Therefore,actionsandrelatedmilestonestoadapttothesetransitionalriskshavebeen includedintheTransitionPlanaccordingtothree relevantdrivers–increasedcarbonpricing,limited useoffossilfuels,andincreasedsalesofelectricvehicles.

Physicalrisks

The‘business-as-usual’RCP8.5climatescenario, whichisahigh-emissionscenariopredictinganaverage4°Criseintemperature,isusedbyLundbeckto identifyclimate-relatedhazardsandrelatedphysical risks.Lundbeck’sassetsandbusinessactivitiesare screenedaccordingtotheirexposuretosuchrisks, withphysicalriskscenariosassessedaccordingtolocation,exposuretoclimate-relatedrisks,andthe likelihood,magnitude,anddurationoftheclimate hazards.

Theidentificationofphysicalrisksisalsosupported bytheannuallyupdatedBIAreport,whichidentifies businessinterruptionrisksandmitigationapproachesovertimehorizons,alignedwiththeDMA process.

AccordingtotheRCP8.5climatescenario,thereisan increasedriskofextremeweather,includingwildfiresandflooding.Therefore,Lundbeckhasplanned mitigationactions,includingdualwarehousesolutionsinanareadeterminedtobeathighrisk.

Climatechangeadaptation–aphysicalrisk

Whilethecurrentpolicy,actions,targets,andtransitionplanfocusonclimatemitigationandenergy, Lundbeckrecognizestheimportanceofaddressing climatechangeadaptationinrelationtophysical risks.ThisaspectisaddressedthroughLundbeck’s company-wideriskmanagementprocesses,includingLundbeck’sBIAreport.AspartoftheBIAprocess,adaptationinitiativesaredefined,andimplementationplansaredevelopedintherelevantparts oftheorganization.

Further,physicalclimate-relatedrisksatLundbeck sitesandinthevaluechainhavebeenassessedas partoftheBIAreportsince2018.Materialrisksare reportedinLundbeck’sriskmanagementprocess andaremonitoredbytheriskmanagementorganization,includingreportingtoExecutiveManagement andtheBoardofDirectors.Mitigatingactionsare definedforallmaterialrisks,withnoassociatedspecifictargets.

E1-5-Energyconsumptionandmix

Energyconsumptionandmix

Lundbeckcontinuestomaintainenergyconsumptionlevelsinlinewithlastyear.Thisstableperformance derivesfromacombinationofregionaldevelopments.Specifically,theenergyconsumptionhasdecreasedin Valby(Denmark),Lumsås(Denmark)andValbonne(France),drivenbyoperationaloptimization,whileanincreaseinPadova(Italy)wasattributedtothecommencementofoperationsatanewproductionunit.

Grossscopes1,2,3andtotalGHGemissions

Scope1&2GHGemissionsareatthesamelevelcomparedto2023.Scope1emissionsincreasedby1%, primarilydrivenbyhigheremissionsfromtheUS.carfleetoffsetbyreductionsatproductionsites.Scope2 emissions(market-based)decreasedby1%,mainlyduetothesterileworkshopshutdownandenergyoptimizationattheValbonnesite.

In2024,scope3GHGemissionsincreasedby8%duetohigheractivityandspendinginpurchasedgoods andservices,aswellasincreasedbusinesstravel.Theriseinpurchasedgoodsandservicesreflectsincreased activityandspendingalignedwithbusinessgrowth.Emissionsfrombusinesstravelalsoincreased,drivenby moretravelactivity,particularlyforflightsandhotelstays.

E1-6

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Grossscopes1,2,3andtotalGHGemissions

Accountingpolicies

EnergyConsumption

EnergyconsumptionforLundbeck’sownoperationsismeasuredastheconsumptionofpower,heat,and fuel,monitoredbybuilding-specificmeterreadingsorinvoicesandestimation(6%)whereprimarydataisunavailable.Renewableconsumptionismeasuredastheconsumptionfrompowerpurchasingagreement,certificates,andsupplierinformation.Theshareofrenewablesourcesintotalenergyconsumptioniscalculated basedonthepercentageofthetotalrenewableenergyconsumptionrelativetototalenergyconsumption.

EnergyIntensity

Lundbeck’senergyconsumptionandrevenue,fromthefinancialstatementarederivedfromactivitiesinhigh climate-impactsectors.Lundbeckisengagedintheresearch,development,production,andsaleofpharmaceuticalsforthetreatmentofpsychiatricandneurologicaldisorders,classifiedunder theNACEcode.TheenergyintensityisreportedasMWh/annualrevenueinDKKmillion.

Scope1GHGemissions

Directscope1emissionsincludegreenhousegas(GHG)emissionsrelatedtotheconsumptionofgas,oil,and refrigerantsusedinproduction(e.g.,emissionsassociatedwithfuelcombustioninboilers,furnaces,andvehicles).

Allconsumedenergyismonitoredbybuilding-specificmeterreadingsorinvoicesandestimation(1%)where primarydataisunavailable.ThequantityofconsumedenergysourcesismultipliedbyrelevantemissionfactorsprovidedbytheUKDepartmentforEnvironment,Food&RuralAffairs(DEFRA 2023).

EmissionsdatafromLundbeck’sownedorcontrolledvehiclefleetisprovideddirectlybytheassociatedleasingcompanyorcalculatedbasedonconsumedfuelmultipliedbyrelevantemissionfactors.Primarydata from73%(2023:75%)ofthecompanycarsisusedtoextrapolateemissionsfromLundbeck’sfullfleetactivity.

Scope2GHGemissions

Scope2emissionsincludesallindirectemissionsrelatedtothegenerationofacquiredandconsumedelectricityanddistrictheating.Allconsumedenergyismonitoredbybuilding-specificmeterreadings,invoices,or estimation(10%)whereprimarydataisunavailable.

Scope2GHGlocation-based

Theemissionsarereportedaslocation-basedandarederivedfromconsumedenergymultipliedbyrelevant location-basedemissionfactorsprovidedbyDEFRA2023.

Scope2GHGmarket-based

Theemissionsarereportedprimarilyasmarket-basedemissions,whereconsumedscope2energyismultipliedbymarket-specificemissionfactorsprovideddirectlyfromtheenergysupplier.Wheremarket-specific emissionsareunavailable,thebestavailablelocation-basedemissionfactorsprovidedbyDEFRA2023are usedforthereportinginlinewiththeGHGProtocolhierarchy.

LundbeckpurchasesbundledcertificatesoforiginderivedfromourPPAagreementthatcovers100%ofthe electricityconsumptioninDenmark(twosites).Bundledcertificatesoforigincovering40%ofthetotalenergy consumptioninscope2.AttwoofLundbeck'ssites(KrakowandLaJolla),unbundledcertificatesarebought bythelandlordofthefacility.Theunbundledcertificatesconstitute2%ofthetotalenergyconsumption(excl. subsidiaries)inscope2.

Scope3GHGemissions

Scope3includesandaccountsforotherindirectemissionswithinLundbeck’svaluechainthatarenotaccountedforelsewhere.Lundbeckhasidentifiedthreesignificantcategoriesoutofthe15definedbytheGHG Protocolforscope3emissions.Thesignificantcategoriesare:Category1:‘PurchasedGoodsandServices’, Category4:‘UpstreamTransportationandDistribution’,andCategory6:‘BusinessTravel’.Thereported scope 3emissionsalignwithLundbeck’sSBTitargetboundary.

Scope3GHGCategory1:PurchasedGoodsandServices

PurchasedGoodsandServicesincludeCO2eemissionsrelatedtoallexpendituresfromexternalsuppliers, excludingthosefromi.e.,taxandVAT.

In2019,LundbeckestablishedtheSBTitargetboundary,whichexcludesapproximately12%ofthe CO2eemissionsinthiscategory.CO2eemissionsrelatedtopurchasedservicesarecalculatedbasedonfinancialexpendituresinUSD,multipliedbyrelevantspend-basedemissionfactorsprovidedbytheU.S.Environmentally-ExtendedInput-OutputModels(USEEIO)database.CO2e emissionsrelatedtopurchasedproductsareestimatedbasedonacquiredquantities,multipliedbyappropriateactivity-basedemissionfactorsfromthe

Ecoinventdatabase.Currently,24%(2023:29%)ofthedatainthiscategoryisbasedonsuppliers’emission datareporteddirectlytoLundbeckorfromtheirCDPdisclosuresorsustainabilityreports.

Scope3GHGCategory4:Up-streamTransportationandDistribution

UpstreamTransportationandDistributionincludeCO2e emissionsrelatedtoallpurchased(non-owned) transportanddistributionservices.Thisencompassesinboundlogistics(fromtier1suppliers),transportbetweenLundbecksitesinValby(Denmark)andLumsås(Denmark),andoutboundlogistics.

AselectionofLundbeck’skeylogisticsuppliers,providesspecificemissionsdatafortheiractivitiesrelatedto Lundbeckand48%(2023:50%)ofthedataisbasedonprimarydata.Wherethisdataisunavailable,emissions arecalculatedbasedonfinancialspendinginUSD,multipliedbyrelevantspend-basedemissionfactorssuppliedbytheUSEEIOdatabase.Thisprimarilyappliestolocallyprocuredlogisticsservices.Allemissionsrelated tothiscategoryareconvertedandcalculatedaswell-to-wheelgreenhousegasemissions.

Scope3GHGCategory6:BusinessTravel

BusinessTravelincludesCO2e emissionsfromthetransportationofemployeesacrosstheentiregroupfor business-relatedtravelactivities.Thisencompassesemissionsreleasedduetoemployeestravelingbyair, road,rail,andsea,aswellasemissionsassociatedwithhotelstays.TheCO2e emissionsfrombusiness-relatedtravelactivitiesarecalculatedbasedonthedistancetraveledandthenumberofhotelstays,multiplied byrelevantemissionsfactorsprovidedbyDEFRA2023.DataiscollectedfromtheTravelManagementCompanies(TMC)anddirectlyfromsubsidiarieswhenthedataisnotcoveredbytheTMC.IninstanceswhereTMC systemsprovideCO2e calculations(inlinewithDEFRA),thosearetobeuseddirectly.

Currently,81%(2023:80%)ofthebusinesstravelemissionsareprovidedbyTMCandsubsidiaries,andthe remaining19%(2023:20%)areextrapolated.

Biogenicemissions

BiogenicCO₂eemissionsresultingfromthecombustionorbiodegradationofbiomassaredisclosedseparatelyfromthescopeofGHGemissions.Theseemissionsoriginatefromtheuseofbio-oilandcompanycars atLundbeck.Thedataiscollectedfromthecompanycarusageandenergyconsumption,thenmultipliedby emissionfactorsprovidedbyDEFRA2023.

TotalGHGemissions

TotalGHGemissions,expressedintonnesofCO2 equivalent(tCO2e),arecalculatedasthesumofscope1, scope2,andscope3emissions.

GHGintensity

GHGintensityisreportedastCO2e/annualrevenueinDKKmillion.Theannualrevenueisdisclosedaspartof theGroup’sFinancialStatements.

Pollution

Lundbeckisdedicatedtopollutionprevention,emphasizingstrictcompliance andproactiveemissionmanagement.Weactivelymonitorandmitigateair, water,andsoilpollutionwhilecollaboratingwithsupplierstoupholdenvironmentalstandards

Seefurtherdetailsonpage65.

Lundbeck’sapproachtomanagingHealth, Safety,andEnvironmentalconcerns

Lundbeckiscommittedtoprotectingtheenvironmentandbelievesthatahealthyplanetisapreconditionforgoodhealthandwellbeing.

Lundbeck’senvironmentalworkisgovernedbyour Health,Safety,andEnvironment(HSE)Policy(link), whichissupportedbyourHSEStrategy(link),Codeof Conduct(link),andpublicpositionstatementson EnvironmentalFootprint(link),Climate(link),Water(link), andBiodiversity(link).

TheHSEPolicysupportsourcommitmenttoprotectingtheenvironmentandcreatingasafeandhealthy workplacewhereeveryonecanthriveandbetheir best.Thepolicyunderscorescompliancewithlegislation,preventionofwork-relateddiseasesandaccidents,chemicalsafety,promotionofcirculareconomyprinciples,andminimizationofemissionsand waste.BeingsetandapprovedbyLundbeck’sHSE CouncilandExecutiveManagement,thepolicyappliestoallofLundbeck’sownoperations,fromsales subsidiariestoproductionsites.

TheoperationalimplementationoftheHSEPolicyat allfourproductionsitesisguidedbyLundbeck’sHSE managementsystem.Thissystemencompasses boththeHSEPolicyandHSEStrategy,aswellas otherinternallyavailablecorporateandlocalguidelinesandprocedures.TheHSEmanagementsystem iscertifiedaccordingtoISO14001andISO45001, correspondingtointernationalstandardsofenvironmentalmanagementandoccupationalhealth andsafety,respectively.

AsanintegralpartoftheHSEmanagementsystem, theHSEPolicyisdesignedincompliancewiththese ISOstandards.

Lundbeck’sHSEmanagementsystemisinformedby scientificknowledgeandexpectationsfromrelevant externalstakeholderssuchastheEU,nationalauthorities,customers,investors,andindustryassociations.Thesystemalsorequiresallproductionsites toconductalocalstakeholderanalysistoensure thatthedemandsandexpectationsofrelevantinternalandexternalstakeholders–includingemployees,neighbors,landownerassociations,andrelevantauthorities–arecovered.Internalauditsofthe sites,externalaudits,andregularinspectionsfrom authoritieshelpensurethatthestakeholderexpectationsareconsideredintheimplementationof Lundbeck’sHSEmanagementsystem.

TheHSEPolicyisalsopartofthecommitmentsand expectationsofemployeesandsuppliersasstated inLundbeck’sCodeofConduct(seepage131). Suppliersandcollaborationpartnersacrossthevalue chainareobligedtoobservetheprinciplessetoutin ourCodeofConductandadheretolocalregulations andstandards.Inpractice,thismeansthatsuppliers andcollaborationpartnersareexpectedtotakean activeroleinprotectingtheenvironment.

TheHSEPolicyandmanagementsystemunderpin ourapproacharoundClimatechange(page75),Pollution(page86),Resourceuseandcirculareconomy (page92),aswellasHealthandSafety(page103) andMentalwellbeing(page106).

Ourapproach(policies)

Lundbeck’sapproachtothepreventionandmanagementofpollutioninitsownoperationsispartofour HSEPolicy(link).Thispolicybroadlyaddresses Lundbeck’scommitmentstoprotecttheenvironment,complywithapplicablelegislationandinternal guidelines,andminimizeemissions,withoutspecificallyaccountingforLundbeck’spollution-relatedimpacts,whicharedescribedonpage65.TheHSEPolicybroadlycoversthepollutantsandsubstancesrelevanttoLundbeck’soperations,asfurtherspecified below.

Operationally,theworktopreventandmanagepollutionatLundbeck’sproductionsitesiscarriedoutin accordancewithapplicableregulationsandthrough theprocessesandproceduressetoutwithintheHSE managementsystem.TheHSEPolicyandmanagementsystemdonotapplytoimpactsandrisksinthe valuechain.Lundbeckexpressesitsexpectationsto supplierstofollowtheenvironmentalprinciplesinits CodeofConduct.FurtherinformationontheHSE Policyandmanagementsystemisdetailedinthe boxtotheleft.

Actions

TofulfillthecommitmentsofLundbeck’sHSEPolicy towardsenvironmentalprotectionandensurestrict compliancewithlegalrequirements,Lundbeckacts inseveralwaystocontrolpollutioninitsownoperations.

Lundbeck prioritizes substituting hazardous substances in product development and production whenever feasible. This commitment is emphasized in the HSE Policy and implemented through the HSE management system.

Airpollution

OrganicsolventsplayakeyroleinLundbeck’sproductionofpharmaceuticalproducts.Asaresultof theiruse,thesesolventsendupasemissionsofnonmethanevolatileorganiccompounds(NMVOC)to theair.Accordingly,themanagementofNMVOCis thefocusofLundbeck’seffortstocontrolairpollution.

Additionally,manyofthesolventsusedinourproductionprocessesareclassifiedassubstancesof concern.ThisunderscorestheimportanceofmanagingairpollutionthroughNMVOCcleaningtechnologies,bothinternallyandincollaborationwithexternalpartners.

Atthesitesthatuseorganicsolvents(i.e.,Lumsås (Denmark),Padova(Italy),andValby(Denmark)),the measurement,prevention,and/orcontrolofVOC emissionsisconductedonanongoingbasis.Owing totheirhigheruseofsolvents,theactivepharmaceuticalingredient(API)productionsitesinLumsås andPadovaareeachequippedwithaRegenerative ThermalOxidizer(RTO),whichisthebestavailable technologyforcleaningtheairattheprimary NMVOCemissionpoint.Additionalmeasurementsof

diffuseemissionsandcalculationoftotal NMVOCs fromlabsarealsoconductedatbothsites.TheRTOs havedrasticallyreducedNMVOCemissionsatboth productionsitessincetheirinstallationsinLumsåsin 2020andinPadovain2004.InValby,estimationsof NMVOCsemittedintotheairarecalculatedand monitoredforallbuildingsusedinproductionand R&D.

Waterpollutionfrompharmaceuticalresidues

Lundbeckacknowledgesstakeholderconcernsabout pharmaceuticalresiduesintheenvironment.ThepotentialsourceofpollutionfromAPIsistwofold–it mayoccurasemissionsfrompharmaceuticalproductionprocesses,aswellasresiduesfromtheconsumptionofmedicinesbypatientsworldwide.

AtLundbeck’sproductionsites,theHSEmanagementsystemaddressestheriskofpollutionfromAPI productionaspartofacomprehensiveapproachto preventingpollution.Thisincludesminimizingspills, ensuringstrictcompliancewithlegalenvironmental permits,andapplyingappropriatecleaningtechnologies.

Furthermore,Lundbeckteststheenvironmentaleffectsofnewmedicinalproductsanddesignprocesseswiththeleastpossibleenvironmentalimpact. Basedonthetestresults,disposalofunusedmedicineisevaluated.Informationonthewastedisposal ofunusedmedicineisaddedtotheproductsafety leafletincludedinthemedicinepackaging.Lundbeck

pursuesapproachesthatbalancehealthcareneeds andenvironmentalconsiderationsinlinewith EFPIA’sEco-Pharmaco-StewardshipInitiativetominimizepharmaceuticalsintheenvironment.

Regardingpollutionstemmingfromtheconsumptionofpharmaceuticalproductsbypatients, Lundbeckisworkingtoincreasinglyunderstandthe impactofresiduespotentiallyresultingfromtheuse ofourproducts.Itisouraspirationtousedetailed knowledgeaboutactivepharmaceuticalingredients tominimizetheirenvironmentalimpact.Societalactionistakenintheformofwastewatertreatment. Methodsformunicipalwastewaterorwastewater fromhospitals,whicharethebiggestpointsources forpharmaceuticalresidues,havebeendeveloped andwillbeimplementedintheEUinthecoming years.

Soilpollutioninownoperations

Lundbeckhasproceduresinplacetoaddressanypotentialspillagestothesoilresultingfromourproductionprocesses.SinceLundbeck’sproductionsites inValby,ValbonneandPadovaaresituatedinpaved urbanareas,themainriskofsoilpollutionhasbeen identifiedatthesiteinLumsås,wheretheareais partlyunpaved,andtheexistinginfrastructureincludesundergroundpipes.AttheLumsåssite,a comprehensiveprocedureisinplaceregardingincidentreporting,includinginformationandtraining onincidentcategories,responsibilities,andcollaborationwithenvironmentalauthorities.

Environmentalpermitsrequireperiodicsoilsamplingatspecificlocationsonthesiteevery10years, aswellaswatersampleseveryfiveyears.Inthe eventofsoilcontaminationatLumsås,anemergencyplanisactivatedincollaborationwithlocalauthorities.Mostspillsarepromptlyresolved,butin therarecaseswherecompleteremovalisnotfeasible,thelocalenvironmentalauthoritymapsand communicatesthecontamination’sexistence.HistoricalpollutionincidentsfromLundbeck’sproduction processeshavepromptedtheimplementationofthe aforementionedpreventativemeasurestocontrol soilpollution,aswellasrootcauseanalysisofreportedeventstoenhanceLundbeck’scontroland preventionprocess.

Atthesiteswithlowriskofsoilpollution,precautionarymeasuresareneverthelesscontinuouslytaken dependingonthesiteconditions.Suchmeasuresincludethestrategicplacementofabsorbentmaterials andtheinspectionandtestingoftankscontaining solventsoroil.

PFASpollution

Pollutionfromper-andpolyfluoroalkylsubstances (PFAS)isanissueofinternationalconcern.At Lundbeck’ssiteinLumsås,pollutiontothesoiland waterhasoccurredfromtheuseofPFAS-containing firefightingfoaminthefactory’sfireextinguishing system,whichwasuseduntil2011incompliance withapplicablelawandfollowingrecommendations bythefireauthoritiesatthattime.Pasttestingofthe

extinguishingsystemanddrainageoffoamfromthe systemontopavedandunpavedsurfacesisthe causeofthePFAScontaminationobservedtoday.

ThecaseofPFASpollutionisbeingmanagedinaccordancewiththerequirementssetbytheauthoritiesandinlinewithLundbeck’sHSE,Complianceand SustainabilityPolicies.Sincethepollutionwasdetected,LundbeckhasbeenengagedinaclosedialoguewiththeDanishEnvironmentalProtection Agency(EPA)regardingthemappingandremediationofthepollution.Lundbeckhasalsocontinuously engagedwithneighborsandthemunicipalitytoaddressconcernsinthelocalcommunity,includingfacilitatingcommunicationchannelsforinquiriesand concernsandholdinginformationalmeetingswith neighbors,landownerassociations,andotherstakeholdersoverthepastseveralyears.

BasedontheperformedinvestigationsofthePFAS pollutioninLumsås,twohotspotsforPFAScontaminationhavebeenidentified;onelocatedwherefire extinguishingfoamwasused,andtheotherhotspot closetoawastewaterdrainthatleadthefoamaway fromthesystemafterafiredrillwasperformed.

Lundbeckhasworkedactivelyanddedicatedlywith theinvestigationsandhasperformedtheagreed measurementsandanalysesrequiredbyEPA,deliveringallrequestedreportsandriskassessmentsand complyingwiththeagreedrequirementsandschedulessetbytheauthorities.

Mitigatingactionsinclude:

•Furthersamplinganddelimitationoftheareato clarifyextentofcontamination;

•Assessmentofactionstoreducetheriskoffuture spreadofcontamination;

•Installationofawatertreatmentsystemtoclean thecontaminatedundergroundarea;

Additionally,Lundbeckhasproactivelytakenstepsto reducePFASlevels.Inagreementwiththeauthorities,Lundbeckhasremovedlargeamountsofsoilin anareawithelevatedPFASconcentrations,remediatingasignificantproportionoftheidentifiedcontaminationin2024.

Asremediationandmitigatingactionsadvance,our knowledgeandunderstandingofPFASpollutionwill continuetoevolve,andwearecommittedto continuingtotakefurtherstepstoreducePFAS levelsinthearea.

Soilpollutioninthevaluechain

Lundbeckacknowledgesitsextendedproducerresponsibilitytowardstheriskofsoilpollutioninthe valuechainduetothepotentiallyinadequatemanagementofsoilpollutionbychemicalsuppliers.This riskisnotcurrentlyaddressedbytheHSEmanagementsystem,asitsfocusisonLundbeck’sownoperations.However,criticalormaterialpartnersand suppliersarecontractuallyrequiredtoadopt Lundbeck’sThirdPartyObligations,whichbindthem

toadheretorelevantsectionsofLundbeck’sCodeof Conduct,includingthatonHSEconsiderations,as wellastoensurethatapplicableHSE-relatedlaws, regulations,guidelines,andindustrystandardsare compliedwith.

Toassessthesuitabilityofengagingchemicalsupplierslocatedincountriesthataredeemedhigh-risk, Lundbeckhasinplaceaduediligenceprocessthat includesphysicalauditsofHSEfactors,includingpollution,environmentalincidents,andincidentmanagement.Thoughthisprocessisnotpartofadedicatedactionplan,itisanintegralcomponentof Lundbeck’sdecisiontoengageinnewcontractualrelationshipswithsuppliers,includingthoseathigher riskofpollutingthesoil.

Avoidingpollution-relatedincidents

Avoidingenvironmentalincidentsandemergency situations(i.e.,toair,waterorsoilpollution)isapriorityforLundbeck.Ensuringthatprocessesarein placetomanageandlimittheimpactonpeopleand theenvironmentintheeventanincidentoccursisa stapleofLundbeck’sHSEmanagementsystem.The HSEmanagementsystemincludessite-specific emergencyplanstoidentifypotentialincidents,detailappropriateactionstopreventandmitigateenvironmentalimpacts,andensureregulartestingand evaluationofemergencypreparedness.Inthecase ofincidents,thesystemensuresreporting,investigation,andthepreventionofrecurrence.

Targets

AlthoughLundbeckdoesnothavespecificsustainabilitytargetsestablishedinrelationtopollutionmanagement,theeffectivenessofLundbeck’sHSEmanagementsystemandactionsregardingpollutionare trackedbasedontheoccurrenceofincidentswith environmentalconsequences.Monitoringenvironmentalincidentsispartoftheoperational-leveldue diligenceprocessdefinedbytheHSEsystem, throughwhichthevariousrisksandimpactsrelated topollutionareidentified,evaluated,planned,monitored,andcommunicated.

Lundbeckaimstohavezeroenvironmentalincidents withenvironmentalconsequenceseachyear.Inthe caseincidentsoccur,thedetailsareutilizedtoassess futurerisk,planstrategiesandactionstomitigate impacts,andinformmanagersandemployees throughouttheorganization.Incidentsarereported toandevaluatedbytheHSECouncilonaquarterly basis.

Lundbecktracksenvironmentalincidentstoensure compliancewithbothlocalenvironmentalpermits andadherencetoISO14001requirements.Anyoccurrenceofsoilpollutionisdeemedtobeanenvironmentalincident,asunderapplicablelaw,nolevel ofsoilcontaminationispermitted.Whilelegalrequirementsallowacertainthresholdofemissionsto airandwaterpersubstanceemitted,Lundbeck strivestokeepemissionstoairandwaterasfarbelowthelegallimitsaspossible.

Thisisachievedforallsubstancesusedin Lundbeck’sproductionprocesses.Inthecasethat soilpollutionoccursorthereisabreachexceeding thelimitsofairandwateremissions,proceduresaddressingenvironmentalincidentsundertheHSE managementsystemaretriggered.

E2-4–Pollutionofair,water,andsoil

Pollutionofair,water,andsoil

LundbeckreportsontheannualemissionsofsubstancesthatexceedthethresholdssetbytheEuropeanPollutantReleaseandTransferRegister(E-PRTR)regulations.In2024,non-methanevolatileorganiccompounds (NMVOCs)atLundbeck’sproductionsiteinPadovaexceededthethreshold.Thisreflectstheinclusionofdiffuseemissionsinthereporteddataforthefirsttime,asrequiredbyE-PRTRstandardsinalignmentwiththe ESRSframework.

InPadova,chimneyemissionsaremonitoredannuallythroughsixexternalmeasurementsofTotalOrganic Carbon(TOC)concentrationandflow.TheaverageTOCmassflowiscalculatedandmultipliedbyRTOoperatinghourstodeterminetotalTOCemissions,whichareconvertedintoVolatileOrganicCompounds(VOC)usingasolvent-specificconversionfactorthatvariesannually.Diffuseemissionsoccurwhenvolatileorganic compoundsarereleasedintotheatmospherefromnon-pointsources,suchaspipingsystems,duringthe productionprocess.Theseemissionsareestimatedannuallyusingamassbalanceapproach.

EnvironmentalManagement

In2024,environmentalincidentsdecreasedfromsevenin2023tofour.Duringthesameperiod,environmentalnearmissesincreasedfrom36to38.Noenvironmentalincidentswithanimpactontheenvironmentwere reported.

Accountingpolicies

Pollutionofair,water,andsoil

ThereportingofpollutingsubstancesencompassestheannualusageintonnewhereitexceedsthethresholdsdefinedbytheEuropeanPollutantReleaseandTransferRegister(E-PRTR)regulation.Thereporting scopeincludesallLundbeckentities;however,thereportedfiguresspecificallyrepresentproductionsites wherethelimitshavebeensurpassed.

In2024,thesubstanceexceedingE-PRTRlimitsisnon-methanevolatileorganiccompounds(NMVOCs)atthe Padovasite.NMVOCsareorganicchemicals,excludingmethane,thatreadilyvaporize.NMVOCshaveaninsignificantglobalwarmingpotentialandarenotincludedinLundbeck'sscope1greenhousegasemissions.

AtthePadovasite,NMVOCemissionsarecategorizedintotwosources:directemissionsfromthechimney anddiffuseemissions.Diffuseemissionsareestimatedusingamassbalanceapproach,whichcomparesthe solventinputinproductionprocesseswithallidentifiedsolventoutputs.Approximately1%ofemissionsare directlymeasuredatthechimney,whiletheremaining99%areestimatedbasedonprioryears’proportional distributionbetweenmeasuredchimneyemissionsanddiffuseemissions.

EnvironmentalManagement

EnvironmentalincidentsarerecordedintheHSEdatasystemandthenumberofenvironmentalincidentsrefertoanunintendedreleasetotheenvironment.

Anenvironmentalincidentreferstoaneventwhereasubstanceisreleasedintotheenvironment,resultingin environmentalimpacts.Theseincidentsareassessedusinganinternalriskassessmentmethodologytodeterminetheirseverityandpotentialconsequences.Additionally,theymaybereportedtoregulatorybodies (dependingonlocalterms).

Environmentalnearmissisthenumberofeventsinvolvingcontainedspillsthatdidnotreleaseintotheenvironment,buthadthepotentialtoescalateintoanenvironmentalincident.

E2-5-Substancesofconcernandsubstancesofveryhighconcern

termimpactsonaquaticecosystems.Aripiprazolehaspropertiesthatmayaffectfertility,poseriskstounborn children,andissuspectedofbeingcarcinogenic.Lundbeckremainscommittedtoproductsafetyandenvironmentalresponsibility,ensuringthatallproductsandprocessesaremanagedresponsibly.

Accountingpolicies

Substancesofconcernandsubstancesofveryhighconcerndevelopment

SubstancesofConcern(SoCs)atLundbeckaredefinedbasedonthecriteriaoutlinedintheannextotheCommissionDelegatedRegulation(EU)supplementingDirective2013/34/EU.AsubstancequalifiesasanSoCifit meetsanyofthefollowingcriteria:(1)ItisidentifiedunderArticle57andArticle59(1)ofRegulation(EC)No 1907/2006.(2)Itfallswithinspecifiedhazardclasses,includingcarcinogenicity,reproductivetoxicity,endocrinedisruption,orpersistentandtoxicproperties.(3)Itnegativelyimpactsthereuseandrecyclingofmaterials,asoutlinedinrelevantecodesignrequirements.SubstancesofVeryHighConcern(SVHCs)arethosethat meettheArticle57criteriaofREACHandareidentifiedunderArticle59(1).SVHCsincludecarcinogenic,mutagenic,ortoxicsubstances(CMRs)classifiedascategory1Aor1B,persistentbioaccumulativeandtoxic(PBT) substances,verypersistentandverybioaccumulative(vPvB)substances,endocrinedisruptors,orothersubstancesofequivalentconcern.

codeH3xx&H4xx)

Substancesofconcernandsubstancesofveryhighconcern

Substances of Concern (SoC) and Substances of Very High Concern (SVHC) represents the quantities of SoCs andSVHCspurchasedforproductionprocessesandthoseleavingLundbeckfacilitiesasemissionsorasproduct components. The majority of SoCs and SVHCs leave Lundbeck's facilities as emissions, including liquid waste, which are treated using either internal technologies or specialized external partners. Only about 1% of these substancesthatarepurchasedbyLundbeckexitthefacilitiesasproductcomponents.

Lundbeck uses three substances as partof its products. Opadry contains titanium dioxide, which is classified ascarcinogenicinitspowderedformbutisconvertedintoanon-carcinogenicliquidformduringtabletcoating. An EU Court ruling is pending to provide further clarification on its status. Vortioxetine is classified as a skin sensitizer,thoughitdoesnotcomeintodirectcontactwiththeskinduetoitscoating,andithaspotentiallong-

The scope of reporting includes all Lundbeck entities; however, the use of SoCs and SVHCs is specific to the productionandR&Dsites.TheSoCsandSVHCsusedinLundbeck'sproductionprocessesarecollectedfromthe internalchemicalregister,andtheamountsofSoCsandSVHCsaregatheredfromthequantitiesofpurchased substancesrecordedinSAP.

TheSoCsandSVHCsusedinproductionprocessesleavethecompany’sfacilitieseitherasemissionsoraspart ofproducts.TheamountofSoCsandSVHCsthatleaveasemissionsisestimatedbasedontheassumptionthat themajorityofhazardoussubstancesexitashazardousliquidwaste,whichistreatedbyexternalpartnersusing advanced filtration technologies. Consequently, a 95% reductionfactor is applied to the quantities purchased (i.e., used in production processes) to estimate the amount of SoCs and SVHCs leaving Lundbeck facilities as emissions.TheamountofSoCsandSVHCsthatleaveasproductsoraspartofproductsisestimatedusingan input-outputapproach,whichassumesthatthequantitypurchasedequalsthequantityexitingaspartofproducts.

Resourceuse&circulareconomy

Lundbeckaddressestheimpactandriskofrisingrawmaterialcostsbyreducingwasteandincreasingtherecyclingofnon-hazardouswasteinline withtheHSEPolicy.Dedicatedactionsarealsoinplacetorecoverandreusechemicalsusedinproduction.

Ourapproach(policies)

Lundbeck’sapproachtoaddressingcircularityand resourceusewithinitsownoperationsisintegrated intotheHSEPolicy(link).ThispolicybroadlyaddressesLundbeck’scommitmentstocircularprinciplesandminimizationofconsumption,emissions andwaste,withoutspecificallyaccountingfor Lundbeck’sresource-relatedimpactsandrisks(see page65).

Regardingtheapproachtocircularityandresource use,theHSEPolicyisfurthersupportedbytheHSE Strategy(link),CodeofConduct(link)andLundbeck’s PositionPapersonEnvironmentalFootprint(link)and Climate(link).

ThroughtheHSEPolicycommitmentsandtheHSE managementsystem,Lundbeckincorporatesthe useofrecycledresourcesintoitsproductionprocesseswhereverfeasible,suchasbyrecoveringand recyclingselectedorganicsolventsusedintheproductionofactivepharmaceuticalingredients(API).

Pleasereferto“Lundbeck’sapproachto managingHealth,Safety,andEnvironmentalconcerns”onpage86formoredetails ontheHSEPolicyandHSEmanagement system.

Althoughtherearenodedicatedpoliciesspecifically addressingthetransitionawayfromvirginresources,sustainablesourcing,ortheuseofrenewableresources,Lundbeckhasmilestonestowardssustainablesourcingandrenewableresources,asdescribedinourClimateTransitionPlan(seepage75).

WhiletheHSEPolicyandmanagementsystemare focusedonLundbeck’soperationsanddonotincludecircularity-relatedimpactsandrisksinthe valuechain,Lundbeckexpectsthirdpartiestofollow theenvironmentalprinciplesinitsCodeofConduct asdescribedin“Lundbeck’sapproachtomanaging Health,Safety,andEnvironmentalconcerns”.Additionally,duringtheprocurementprocess,packaging suppliersareaskedaboutrecyclabilityandwaste management,andtheymustdeclarethattheirpackagingcomplieswithrelevantdirectivesandregulations.Further,Lundbeck’son-siteauditsofchemical supplierssituatedinhigh-riskareasincludetheassessmentandmonitoringofchemicalmaterials(see page116).

Actions

Bycombiningcontinuousproductiontechniques withrecyclingprinciples,Lundbeckaimstocreatea circularmanufacturingmodel,integratingdifferent manufacturingprocessesandreusingmaterials.This approachalignswithSDG12(ResponsibleConsumptionandProduction)andispartofLundbeck’sSustainabilityStrategy.Lundbeck’s2030aspirationsincludetransitioningfromthetraditionallinear‘takemake-dispose’manufacturingmodeltoamoreregenerativeonethatlimitsmaterialuse,waste,and CO2 emissions,aswellasexpandingcircularprinciplestokeypartners.

Lundbeckhasseveralongoinginitiativestoreduce waste,reuseresources,andrecyclematerials, thoughadedicatedactionplantowardscircularity hasyettobedeveloped.Asthevastmajorityof wastefromLundbeck’sproductionsitesisinthe formofchemicalwaste,Lundbeckhasdedicated mostofitscircularity-relatedeffortssofartorecoveringandreusingchemicalsandorganicsolventsat itschemicalproductionsitesinLumsås(Denmark) andPadova(Italy).Attheremainingproductionsites inValby(Denmark)andValbonne(France),most wasteisdefinedasnon-hazardouswastefrompackagingmaterials.Lundbeckhasthereforeimplementedvariousinitiativestoreuseandrecyclesuch materialsacrossitsproductionsites.

Recovery

andrecyclingofchemicals

and

organicsolvents

OurR&Dandmanufacturingactivitiesarelargely basedonchemicalsynthesis,whichusesconsiderableamountsoforganicsolventsandenergy. Lundbeckcontinuouslyevaluatesandimplements greenchemistryprinciplesandbestavailabletechnologieswhendesigningprocesses,installingtechnicalutilities,andoperatingfacilities.

Effortstoimprovetherecoveryandrecyclingof chemicalsandorganicsolventsareongoingat Lundbeck’schemicalsites.In2023,LundbeckreceivedinternalapprovaltoestablishanewSolvent RecoveryUnitattheLumsåssite,thusexpandingthe recoveryprocesstoincludethreeadditionalsolvents.Withtheprojectstartingin2024andwithexpectedcompletionin2025,thisunitisexpectedto facilitatetheadditionalrecoveryofover600m3 of solventannually.AtthePadovasite,recoverablesolventsaresenttoathirdpartyforrecovery,whileat bothsites,non-reusablesolventsareusedforenergyrecovery.

In2024,theseeffortsresultedintherecyclingof 62%ofselectedorganicsolventsusedinchemical production.

Recyclingofpalladium

PalladiumisusedbyLundbeckasacatalystinthe productionprocessforsomeAPIs.Therecyclingof palladiumsubstantiallyimpactsCO2ereductions, limitstheuseofarareearthmetalasvirginmaterial, andreduceswaste.Thepalladiumusedinoneof Lundbeck’smajorprocessesisrecoveredandreused onanongoingbasisinLumsåsandPadova.In2024, secondaryreuseorrecycledcomponentsaccounted for32%ofthetotalresourceinflow,withpalladium recoverybeingacomponentoftherecycledmaterials.

Non-hazardouswastereductionandrecycling initiatives

Inadditiontolocalrecyclinginitiativesacross Lundbeck’soperations,Lundbeckconsistentlyimplementsrecyclinginitiativesformaterialssuchasplastic,paper,cardboard,glass,andfoodwasteacross itsproductionsites.

AttheValbysite,smallplasticcontainersusedfor tabletsareregularlyrecycledandnewwastehandlingvendorsareengagedtooptimizeplasticsorting,includingthesortingandreuseofplasticdrums. Similarly,theLumsåssiteimplementedaninitiative toincreasebothrecyclingandreuseofplasticdrums whichhasearlierbeensentforincineration.Actions atValbonneandValbyincreasedpaperandcardboardrecyclingthroughimprovedsortingprocesses andtheimplementationofanewwastecompactor. Theseeffortsincludeseparatingmateriallikecarton,

paperandcartonsforrecyclingfromproductionand warehousingoperations.Additionallyfoodwaste sortinginkitchensandcanteensacrossValby, Lumsås,andValbonnehasboostedfoodwasterecycling.

Despiteongoinginitiativestoimproverecyclingefforts,Lundbeck’srecyclingratefornon-hazardous wastehasdecreasedfrom70%to65%.Toaddress this,Lundbeckwillevaluateandimplementadditionalrecyclinginitiativestoenhancewastemanagementpracticesacrossitsoperations.

Targets

Chemicalrecycling

Toupholditscommitmenttowardsapplyingcircular economyprinciplesintheproductionprocess,in alignmentwithUNSustainableDevelopmentGoal12 (ResponsibleConsumptionandProduction), Lundbecksetsatargeteachyearregardingrecycling ofselectedorganicsolventsusedfortheproduction ofAPIsatLundbeck’schemicalsitesinLumsåsand Padova.Thetargetissetbasedonexpectedproductionvolumeandmixforthecomingyear.

Thisapproachnotonlyaddressesenvironmental sustainabilitybutalsoeconomicfeasibility,ensuring thatonlywastewithahighsolventcontentistreated forrecycling.Thetargetisdevelopedbasedonhistoricaldataandwastecharacteristics,andarobust calculationprocessisusedtosetthetarget.

However,thetargetisnotvalidatedbyaninternationallyapprovedframework.Themanagementat bothchemicalsitesdevelopsthistargetbasedon theupcomingyear’sproductionplans,incorporating estimatesofexpectedsolventusetosetarealistic yetambitiousrecyclingpercentagetarget.ThetargetisthenapprovedbytheHSECouncil,aswellas ExecutiveManagement,asapartofLundbeck’sSustainabilityStrategy.Thistargetsupportsincreasing thecircularmaterialuserateandminimizingthe needforprimaryrawmaterials.

For2024,thetargetwastorecycle64%ofselected organicsolventsusedinchemicalproduction1 .In 2024,theresultwas62%.Theslightdeviationfrom thetargetwasprimarilyduetoashiftinproduction volumesbetweenoursites.ThePadovasite,whose solventrecoverycapacityislowerthantheLumsås site,hadahigher-than-expectedproductionoutput, impactingtheoverallrecyclingrate.Lookingahead, wehaveadjustedour2025targetto63%,takinginto accounttheseoperationalfactorsandour

continuouscommitmentandeffortstooptimizesolventrecyclingacrossallourproductionfacilities.

Generalwasterecycling

Inlinewithourgoaltocontinuouslyminimizeraw materialuseandwastegeneration,Lundbecksets anannualtargetforgeneralwasterecyclingatall fourproductionsites.Achievingthistargetinvolves implementingmeasurestoseparatewaste,increase recycling,andpromotereuse.

Thegeneralwastetargetisdefinedbasedonthe availabledatacollectionopportunitiesatthesites, anditsupportscompliancewithrelevantregulations (e.g.,EUWasteDirective),aswellastheprinciplesof circularityandwastereductioninLundbeck’sHSE Policy.Thetargetissetbasedonaninternalmethodologyandhasnotbeenvalidatedbyanyexternal scientificframework.Theproductionsitesareresponsibleforcollectinganduploadingdataintothe HSEdatabaseandprovidingexplanationsforanyobservedchanges.Throughouttheyear,Lundbeck’s corporateHSEdepartmentmaintainsongoing

communicationwiththeproductionsitesaboutthe statusofexistingwasteinitiativesandthepotential forfutureones.Basedonthisknowledge,anewcorporatewastetargetisdeterminedfortheupcoming year,withapprovalgrantedfromallproductionsites andLundbeck’smanagementviatheHSECouncil. Thiscollaborativeapproachensuresthatallcovered sitesarealignedandcommittedtoLundbeck’s sharedrecyclinggoals.For2024,thetargetwasto recycle75%ofgeneralwaste.Recyclingofgeneral wastereached71%in2024,fallingshortofthe75% targetfortheperiod.Theslightunderperformance wasprimarilydrivenbyanincreaseinhazardous waste,whichimpactedoverallrecyclingrates.Lookingforward,Lundbeck’stargetfor2025istorecycle 70%ofgeneralwaste.Thisislowerthanthe2024 targetbecausethescopeisexpandedtoincludeall sitesglobally,includingallsalesoffices.

Lundbeck’stargetsaresetvoluntarilyandarenotrequiredbylaw.Lundbeckdoesnotcurrentlyhaveany targetsregardingtheincreaseofcircularproduct designorthesustainablesourcinganduseofrenewableresources.

E5-4-Resourceinflows

Resourceinflow

Totalweightandshareofresourceinflowrelatedtoproducts,technicalandbiologicalmaterials,aswellas theweightandshareofsecondaryreusedorrecycledcomponentsusedinLundbeck’sproductionactivities, reflectoureffortstoreduceoverallmaterialconsumptionandincreasetheuseofcomponentswithalower environmentalfootprint.

E5-5–Resourceoutflows

Lundbeckhasbiologicalmaterials,whichconsistoflactose,celluloseetc.usedinbulkproductionasinactive carriersoftheactivepharmaceuticalingredient(API).Itisassumedthatthesematerialsaredefinedasbiologicalmaterialsastheyareusedasbulkcomponentandserveascarriersfortheactiveingredients.Information onthecertificationschemesapplicabletothesebiologicalmaterialswillbefurtherinvestigatedinfuturereportingperiods.Asaresult,a0%iscurrentlyreported.

Theuseofsecondaryreusedorrecycledcomponentsislargelydrivenbytherecoveryandrecyclingofsolventsattheproductionsites.AttheLumsåssite,solventsaretreatedon-siteusingadvancedrecyclingunits, whileatthePadovasite,treatmentismanagedbyexternalsuppliers.

Wasteandresourceoutflow

Lundbeckreportsonbothhazardousandnon-hazardouswaste,focusingonwastedirectedanddiverted fromdisposal,includingmaterialssentforrecoveryandrecycling.Thehazardouswastestreamincludesorganic,inorganicchemicalsubstancesandmedicinalwastewhilethenon-hazardouswastestreamconsistsof paper,plastic,cardboard,metal,glass,foodandbiologicalrawmaterials,pallets,andelectronicwaste. In 2024,thetotalwastegeneratedremainedconsistentwith2023levels.

Theresourceoutflowincludessecondaryandtertiarypackagingmaterials,suchascartons,leaflets,andshipmentboxes.

Resourceinflow

ResourceinflowencompassesallLundbeckentitiesandincludesallgoodspurchasedgoodsfromexternal suppliersthatfallwithintheGHGscope3boundariesforCategory1:purchasedgoodsandservices.Italso includessolventsfrominternalrecoveryandpalladiumfromthird-partyrecycling.Thematerialsusedareassumedtobeequivalenttothosepurchased,astheyareacquiredforplannedproduction.Thesematerialsincludebothpharmaceuticalproductsandpackaging.

Theabsoluteweightofsecondaryreusedorrecycledcomponentsincludessolventsrecoveredinternallyat theLumsåssiteandtherecycledpalladiumcontentin'Palladium(DBA)₂.Internallyrecoveredsolventsatthe Lumsåssitearemeasuredasthetotalvolumeoforganicsolventsregeneratedon-siteusingrecyclingunits. Thesevolumesareconvertedfromliterstokilogramsusingastandardizedconversionfactor.

Waste

Wasteiscategorizedintotwomaintypesofhazardouswasteandnon-hazardouswaste.Thehazardouswaste streamincludesorganic,inorganicchemicalsubstancesandmedicinalwaste,whilethenon-hazardouswaste streamconsistsofpaper,plastic,cardboard,metal,glass,foodandbiologicalrawmaterials,pallets, andelectronicwaste.

WastedataiscollectedfromtheproductionsiteslocatedinValby,Lumsås,Padova,andValbonne.Thecollectedwastedataisbasedonsupplierdata,weightrecipesandestimations(2%)whereprimarydataisunavailable.Fortheremainingentities,dataisderivedfromestimations(3%)basedontheweightoftheoffice wasteperFTEattheValbysiteinthepriorreportingyear.

Recyclingcoverspaper,plastic,cardboard,metal,glass,food,andbiologicalrawmaterials.Otherrecovery operationscoversprimaryhazardouswastefromPadova.Incinerationcoversprimaryhazardouswastefrom thechemicalproductionsites.

Resourceoutflow

ThescopeofreportingincludesallLundbeckentities.Theabsoluteweightofrecyclablecontentinproducts andpackagingincludesallpurchasedmaterialspurchasedforsecondaryandtertiarypackagingfrom

externalsuppliers,asdefinedwithintheGHGscope3boundariesforCategory1:purchasedgoodsandservices.Thisrecyclablecontentincludescartons,leaflets,andshipmentboxes,allofwhicharecomponentsof secondaryandtertiarypackaging.

Repairabilityisnotapplicable,aspharmaceuticalproductsareclassifiedashazardouswasteandareincineratedattheendoftheirlifecycle.

ThedurabilityofLundbeck’sproductsisinfluencedbyfactorssuchasthelongevityofactivepharmaceutical ingredients(APIs),typeofpackaging,andspecificmarketrequirements.

Recyclingofselectedorganicsolventsinchemical(target)

RecyclingofselectedorganicsolventsinchemicalproductionappliestosolventsutilizedatLundbeck’schemicalproductionsitesinLumsåsandPadova.Recyclingismeasuredasthetotalvolumeofselectedorganicsolventsthathasthepotentialtoberecycled.Solventsincludenewlypurchased,recycled,andscrappedsolvents,withvolumesconvertedfromliterstokilogramsusingastandardizedconversionfactor.AtLumsås,solventsaretreatedon-siteusingrecyclingunits,whileatPadova,treatmentismanagedbyexternalsuppliers.

ReportingaccordingtotheEUTaxonomy

TheEUTaxonomyregulation(EU2020/825)isascience-basedclassificationsystemdesignedtoestablishacommonlanguagetosupportcompaniesand investorstoidentifysustainableeconomicactivities. Bydoingso,theEUTaxonomycontributestotacklinggreenwashingandpromotingthetransitiontowardsamoresustainableeconomy.

InaccordancewithArticle8oftheEUTaxonomy, Lundbeckisrequiredtoreportonthesustainability profileofitsRevenue,CapitalExpenditure(CAPEX), andOperatingExpenditure(OPEX).ThisprocessentailsthescreeningofLundbeck’sbusinessactivities againstthepotentiallysustainableactivitieslistedin theEUTaxonomy’sdelegatedlegislationtoidentify oureligibleshareofRevenue,CAPEX,andOPEX(i.e., eligibilityassessment),andtheevaluationofcompliancewithtechnicalscreeningcriteria(Substantial contribution&Donosignificantharm)andtheMinimumSafeguards(i.e.,alignmentassessment).

Theresultsfromtheeligibilityandalignmentassessmentsaresummarizedineligibilityandalignment KPIsforRevenue,OPEX,andCAPEX,presentedon pages98,99,and100,respectively.

Eligibilityassessment:

Lundbeckconductsitseligibilityscreeningagainst theactivitiesthatcontributetoClimateChangeMitigation(CCM),ClimateChangeAdaptation(CCA),SustainableUseandProtectionofWaterandMarineResources(WTR),TransitiontoaCircularEconomy(CE), PollutionPreventionandControl(PPC),andProtectionandRestorationofBiodiversityandEcosystems (BIO).In2024,thefollowingweredeemedeligible:

• Manufactureofmedicinalproducts(PPC1.2)

• Transportbymotorbikes,passengercars,and lightcommercialvehicles’(CCM6.5)

• Constructionofnewbuildings(CCM7.1)

• Renovationofexistingbuildings(CCM7.2)

Revenue

Asaglobalpharmaceuticalcompany,Lundbeckrecognizesrevenuefromthesaleofpharmaceuticals (Note3,page156).Lundbeckdeterminesrevenueeligibilitybasedonanend-productapproachbylinkingeachproduct’srevenuestreamtoourcoreactivity‘Manufactureofmedicinalproducts’(PPC).In 2024,thisapproachresultedina100%revenueeligibility,whichisinlinewith2023results.

CAPEX

LundbeckassessestheCAPEXeligibilitybyreviewing itsacquisitionsinthefinancialyear(Notes7and8, pages163-167)andbylinkingthemtoeligibleeconomicactivities.In2024,Lundbeckidentifiedeligible projectsunder‘Renovationofexistingbuildings’, ‘Transportbymotorbikes,passengercars,andlight commercialvehicles’,‘Constructionofnewbuildings’ and‘Manufactureofmedicinalproducts’.Thefirst twoactivitiesarerelatedtoourrenovationprojects andcarfleet,respectively.ThelattertwoareassociatedwiththeconstructionofourIn-Vivofacility(see page135),aswellastangibleassetsfromproduction andintangibleIPrightsfromtheacquisitionofLongboard1.Duetothesesignificantadditions,our2024 eligibilityis99%,comparedto27%in2023.

OPEX

OPEXeligibilityentailsareviewofthegeneralledger entriesinourStatementofProfitorLoss(seepage 147).Bythisapproach,LundbeckidentifiedOPEXrelatedto‘Renovationofexistingbuildings’,‘Transport bymotorbikes,passengercarsandlightcommercial vehicles’,‘Constructionofnewbuildings’and‘Manufactureofmedicinalproducts’.In2024,LundbeckupdatedthemethodologyforitsOPEXdenominator

(seefootnote1atpage99)resultingin6%eligibility, comparedto7%in2023(restated).

Alignmentassessment:

GivenLundbeck’sbusinessmodel,themostmaterial sustainabilityimpactcanbeachievedbymakinga substantialcontributiontopollutionpreventionand control(PPC1.2).Sincemostofourcurrentproduct ingredientsportfolioisnotnaturallyoccurring,biodegradable,ormineralized(criterion1.1)and Lundbeckcannotcurrentlyfulfilltheproductsubstitutioncriteria(criterion1.2),itisimpossibletoclaim alignmentforthe‘Manufactureofmedicinalproducts’in2024.Aspartofourdevelopmentofnew products,Lundbeckcontinuesapplyinggreenchemistryscreeningprocessesandconductingenvironmentalimpactassessments(pages76&93).Workingtowardsthealignmentofothereligibleactivities irrelevanttoourbusinessmodelisnotcurrentlya strategicpriorityandissubjecttodatalimitations.

LundbeckcontinuestheassessmentofitsMinimum SafeguardstocomplywithCSDDDby2027.Anumberofoperational-levelduediligenceprocessesare inplaceforensuringresponsiblebusinessconduct acrossthevaluechain(seepage72).

Revenue

ACTIVITIES

A.1.Environmentallysustainableactivities(taxonomy-aligned)

Revenueofenvironmentallysustainableactivities(taxonomy-aligned)(A.1)

whichenabling

Ofwhichtransitional

A.2Taxonomy-eligiblebutnotenvironmentallysustainableactivities(nottaxonomy-alignedactivities) Manufactureofmedicinalproducts

Revenueoftaxonomy-eligiblebutnotenvironmentallysustainableactivities(nottaxonomyalignedactivities)(A.2)

oftaxonomy-eligibleactivities (A.1+A.2)

B.TAXONOMY-NON-ELIGIBLEACTIVITIES

Revenueoftaxonomy-non-eligibleactivities(B) 0 0%

Revenueaccountingpolicy

Theshareofrevenuegeneratedfromtaxonomy-eligibleeconomicactivities(numerator)isdividedby totalrevenue(denominator),asreportedintheGroup'sStatementofProfitorLoss.Totalrevenueincludesrevenuefromproductsandotherrevenue,netofeffectsfromhedging.Revenueeligibilityisdeterminedbylinkingeachproduct'srevenuestreamtoacorrespondingeligibleeconomicactivity.

OPEX

A.TAXONOMY-ELIGIBLEACTIVITIES

A.1.Environmentallysustainableactivities(taxonomy-aligned) None

OPEXofenvironmentallysustainableactivities (taxonomy-aligned)(A.1)

whichenabling

whichtransitional

A.2Taxonomy-eligiblebutnotenvironmentallysustainableactivities(nottaxonomy-alignedactivities)

Taxonomy-eligiblebutnotenvironmentally

OPEXaccountingpolicy

TheOPEXdenominatorincludesdirectnon-capitalizedcoststhatrelatetoresearchanddevelopment, buildingrenovationmeasures,short-termleases,maintenanceandrepair,andanyotherdirectexpendituresrelatingtotheday-to-dayservicingofassetsofproperty,plant,andequipment(PP&E)necessary toensurethecontinuedandeffectivefunctioningofsuchassets.Thedenominatorsetsthebaseline againstwhichtheproportionoftaxonomy-eligibleoperatingexpensesisidentified(numerator).

PPC=Pollutionpreventionandcontrol

CCM=Climatechangemitigation

EL=Eligible

N/EL=Noteligible

CAPEX

A.TAXONOMY-ELIGIBLEACTIVITIES

A.1.Environmentallysustainableactivities(taxonomy-aligned)

CAPEXofenvironmentallysustainableactivities(taxonomy-aligned)(A.1)

whichenabling

Ofwhichtransitional

A.2Taxonomy-eligiblebutnotenvironmentallysustainableactivities(nottaxonomy-alignedactivities)

ofmedicinalproducts

Transportbymotorbikes,passengercarsand lightcommercialvehicles

B.TAXONOMY-NON-ELIGIBLEACTIVITIES

PPC=Pollutionpreventionandcontrol

CCM=Climatechangemitigation

EL=Eligible

N/EL=Noteligible

CAPEXaccountingpolicy

AdditionstotangibleandintangibleassetsareaccountedforintheConsolidatedFinancialStatements underIFRSduringthefinancialyear,consideredbeforedepreciation,amortization,andanyremeasurements,excludingGoodwill(includedinNotes6and7intheFinancialStatements).Thisincludesal capitalizedinvestmentssuchasacquisitions,construction,andupgradesofassets.Thedenominatorsets thebaselineagainstwhichweidentifytheproportionoftaxonomy-eligibleinvestments(numerator).

Ditte,livingwithSchizophrenia

Ownworkforce

Lundbeck’sgreatestassetisitspeople.Everywhereweoperate,westrive tosafeguardouremployees,takeactionongenderequalityandunconsciousbias,andcontributetoouremployees’healthandwellbeing.

Seefurtherdetailsonpage66.

Healthandsafety

Ourapproach(policies)

EnsuringthehealthandsafetyofallLundbeckemployeesisfundamentaltobuildingaresilientand ethicalorganization.OurHSEPolicy(link)andHealth andSafetyPosition(link)setoutourapproachtowardsworkplaceaccidentpreventionandenablethe managementofhealthandsafetyriskstoallemployees,includinggroupsathigherrisksuchasproductionworkersandthesalesforce.Lundbeck’s healthandsafetyperformanceisalsogovernedby ourCodeofConduct(link)(seepage131).

TheHSEPolicyspecifiesLundbeck’scommitmentto complyingwithapplicablehealthandsafetylegislationandinternalguidelines,preventingworkrelated accidentsandillhealth,aswellaspromotingahigh levelofchemicalsafetybysubstitutinghazardous chemicals.Lundbeck’sHSEStrategy(link)andCode ofConductmakereferencetotheUNGuidingPrinciplesonBusinessandHumanRights.Todate,thisis notincludedwithintheHSEPolicy.

TheinterestsofLundbeck’sworkforceareincorporatedintotheHSEPolicythroughtheHSECouncil, whichischairedbytheExecutiveVicePresidentof ProductDevelopment&Supply,andincludesthree employeesandthreemanagementrepresentatives whodefineandregularlyevaluatethepolicy. Lundbeck’sExecutiveManagementisaccountable fortheimplementationofthepolicy.

TheHSEPolicyisavailableinternallyonLundbeck’s intranetandexternallyonourwebsite www.lundbeck.com.

Actions

Lundbeck’sfourproductionsitesarecoveredby theHSEmanagementsystemasfurtherspecified in“Lundbeck’sapproachtomanagingHealth, Safety,andEnvironmentalconcerns”(page86).In thecontextofhealthandsafety,thisincludescorporate-levelactionplansbasedonwork-related diseases,accidents,nearmisses,andhazardobservationdata,newlegislation,andsocietal trends.Lundbeck’scorporateheadquartersand largerresearch,development,andmanufacturing facilitiesarecertifiedinaccordancewiththeISO 45001standardcertification.

Asaglobalpharmaceuticalcompany,Lundbeckputs inplaceasetofkeyactionstoensurethehealthand safetyofemployees.Consideringtheriskofincidentsatourproductionsites(i.e.,Valby(Denmark), Lumsås(Denmark),Padova(Italy)andValbonne (France)),specificactionshavebeentakenregarding thechemicalsafetyofourworkforceacrossthese sites.In2024,theseactionsincludedtheevaluation ofmoreefficientprocessesforchemicalsubstitution, theimprovementofcommunicationaroundchemicalguidance,aswellasthereviewandupdateof REACHregistrations(Registration,Evaluation,AuthorizationandRestrictionofChemicals).Byincreasingawarenessonchemicalsafetyandpromotingrelatedtrainings,Lundbeckseekstoeliminatepotentialchemicalsafetyrisksforemployeesandthereby reducingtheneedforanyfutureremedy.Sincethe launchoftheseinitiativesin2024,theeffectiveness isevaluatedregularlywithstakeholdersinthelineof business.

LundbeckiscontinuouslydevelopingitscomprehensiveIndustrialHygieneProgram,whichincludestoxicologicaltests,dustmeasurements,andthe

calculationofexposurelimitsfornewactivesubstancesandbiologics.Basedonthesemeasurements,Lundbeckevaluatesanddesignsworkplaces andproceduresthatensurehealthyandsafeworkingconditions.Lundbeck’schemicalsafetyexperts areresponsibleforperforminggapanalysesbased onapplicableregulationsandsupplierinformation toidentifythemostsuitableactionstoaddress chemicalsafetyrisksforLundbeckemployees.

Beyondthekeyactionsimplementedforchemical safety,Lundbeckmitigatesrisksbysystematicallyassessinghealthandsafetydata,workingconditions andconductingriskassessmentsbeforeimplementingchanges,suchasnewlegislation,facilitiesor productdevelopment.Lundbeckalsomaintainsnumerousservicesandguidelinesavailabletoallemployeesviatheintranetregardingchemicalsafetyas wellasgeneralhealthandsafetyatwork.Theseincluderesourcesontaking‘BrainandBodyBreaks’to getenergizedatwork;exercisestopreventaches andpains;videosonbestergonomicspracticesin theoffice,laboratories,aswellaswhendriving.

Targets

Healthandsafetyintheworkplaceisapriorityat Lundbeck,andfosteringasafetyculturethatminimizeswork-relatedaccidentsanddiseasesisessential.Toachievethis,wecarryoutexhaustivemonitoringofthefrequency,number,andseverityofaccidentstoestablishactionplansandambitioustargetsandfacilitatingpreventiveactions.OurHSEPolicy,HSEpositionandmanagementsystemspecify ourambitiontowardshealthandsafetyandconstitutesourframeworkforsettingmeasurabletargets.

Lundbeck’s2024targetsareexpressedintermsof LostTimeAccidentFrequency(≤ 3)andHigh-consequenceWork-relatedAccidentswithAbsence1 (≤ 2). ThesetargetscoverallLundbeckemployeesandare nottrackedagainstaspecificbaselineyear.

ThemethodologiesandassumptionsusedforsettingLundbeck’shealthandsafetytargetsareanchoredintheHSEPolicyandHSEmanagementsystem,whicharereviewedandapprovedbytheHSE Councilonanannualbasistoreflectthelatestdata, trendsandapplicablelegislation.

Progressonthehealthandsafetytargetsistracked andreportedquarterlytoLundbeck’sHSECouncil, whichincludesemployeerepresentatives.TheHSE CouncilreflectstheviewsofLundbeck’sworkforcein thetargetsettingprocess,andinidentifyinganyimprovementsbasedonhistoricalperformance.

In2024,Lundbeck’sLostTimeAccidentFrequency hasincreasedto3.2andHigh-consequenceAccidentsalsoroseto3,thereforenotmeetingthe2024 target.Safetycultureprojectshavebeenestablished tomitigateaccidentsandillhealthcasesandtoseek long-termsustainablesolutions.Theseinitiatives alignwithLundbeck’s2030aspirationstoreduce workplaceaccidentsandimproveoverallhealthand safety.

Continuousfocusonriskassessmentandroot causesanalysisbymanagersandemployeeshelps maintainalowincidenceofwork-relatedillhealth cases(oneoccurredin2024).

S1-14-HealthandSafetymetrics

In2024,Lundbeckhad130work-relatedaccidents,resultingin733lostdaysduetoinjuries,primarilycaused byergonomicissues,slips,trips,andfalls.Thirtyofthe130work-relatedaccidentsincludeabsences,and threeofthemconstitute72%ofthelostdays.

Accountingpolicies

Healthandsafety

ThepercentageofemployeescoversallLundbeck’semployeesbasedonheadcount.TheemployeesareeithercoveredbythehealthandsafetymanagementsystemcertifiedaccordingtoISO45001,orbylegalrequirements.Lundbeck’sISO-certifiedsystemcoversresearch,development,andmanufacturingsitesinDenmark,Italy,andFrance,aswellasourheadquartersfunctions.LegalrequirementsapplytoallotherLundbeck sites.

FatalitiesrefertothenumberofemployeesandotherworkersatLundbecksiteswholosttheirlivesdueto work-relatedinjuries,asrecordedintheHSEdatasystem.Theseincidentsareincludedinthecalculationof theLostTimeIncidentRate(LTIR)andtheTotalRecordableIncidentRate(TRIR).

Thenumberofwork-relatedaccidentsincludesbothwork-relatedaccidentswithabsenceandwithoutabsence,asrecordedintheHSEdatasystem.Awork-relatedaccidentisdefinedasawork-relatedeventorexposurethatoccurssuddenlyandresultsinpersonalphysicalorpsychologicalinjury.TheseaccidentsareincludedinthecalculationoftheLostTimeIncidentRate(LTIR)andtheTotalRecordableIncidentRate(TRIR).

TheTotalRecordableIncidentRate(TRIR)measurestherateofallwork-relatedinjuries,whichincludesworkrelatedaccidents,andfatalitiespermillionhoursdividedbytotalhoursworked.Thetotalhoursworkediscalculatedbyestimating225workingdaysperyear,multipliedby7.4hoursperday,andthenmultipliedbythe numberofemployees,basedonDanishworkingtimestandards.

Thenumberofdayslostduetowork-relatedinjuriesincludesalldayslosttowork-relatedaccidentsandfatalities.Thiscalculationcoverstheentireperiodofabsence,fromthefirstfulldaytothelast,andisbasedoncalendardays,includingnon-workingdays.

TheLostTimeIncidentRateisdeterminedbythenumberofwork-relatedaccidentswithabsenceandfatalitiesperonemillionworkinghours.Thetotalhoursworkediscalculatedbyestimating225workingdaysper year,multipliedby7.4hoursperday,andthenmultipliedbythenumberofemployees,basedonDanish workingtimestandards.

High-consequencework-relatedaccidentswithabsence(target)

High-consequencework-relatedaccidentswithabsencearedefinedaswork-relatedaccidentsthatare categorizedas“Large”(work-relatedinjurywithpermanentinjury)or“Catastrophic”(deathordisability)inthe internalriskassessment.Theseaccidentsresultininjuriesfromwhichtheemployeeisnotexpectedtofully recoverwithinsixmonths.

Mentalwellbeing

Ourapproach(policies)

Safeguardingthementalandphysicalhealthofour employeesisparamounttoLundbeck’ssuccess.At Lundbeck,mentalwellbeingismanagedthroughour wellbeingcommitmentandtheHSEPolicy(link)(see page86),whichareglobalinscopeandthusapplyto allLundbeckemployees.Thewellbeingcommitment recognizestheimportanceofemployees’wellbeing asfundamentaltoLundbeckremainingaworkplace whereeveryonecanthrive.Oneofthewaysthat Lundbeckembodiesitscommitmenttopsychologicalandmentalwellbeingisthroughthe‘Migrainefriendlyworkplace’certification,asawardedbythe EuropeanMigraine&HeadacheAlliance.

AtLundbeck,theExecutiveManagementisaccountablefortheimplementationofthewellbeingcommitment,whichispresentedtotheWorksCouncil andtheHSECouncilinordertoreceivecomments fromemployeerepresentativesormanagerrepresentatives.Thesebodieshelpincorporatetheviews andinterestsofLundbeck’sworkforceintorelevant policiesandactionplans. TheWellbeingcommitmentisavailableinternallytoemployeesvia Lundbeck’sintranet.Todate,noreferencetotheUN

GuidingPrinciplesonBusinessandHumanRightis includedwithinthewellbeingcommitment.

Actions

Lundbecktakesvariousactionstosupportthementalandphysicalwellbeingofemployees,designedto address,preventandmonitorimpactsonemployee wellbeing.Recognizingthediverseneedsofaglobal workforce,wellbeingprogramsareadaptedfordifferentlocations.

LeadtheWayCulture

AspartofournewFocusedInnovatorStrategy,the global“LeadtheWay”culturejourneywasintroducedin2024,withtailoredinitiativestoequipeveryoneatLundbeckwiththerighttoolstodriveour culturechange.Onekeyambitionistofosterasupportiveworkenvironmentwithpsychologicalsafety, leaderswholisten,andastrongfeedbackculture. Theambitionwillbemeasuredthroughspecific‘Our Voice’(seepage110)questionstogainanunderstandingofemployeeexperiencesaswellastotrack theprogressofourculturalambitions.Byfocusing onfosteringasupportiveworkenvironment, Lundbeckiscreatingaworkplacewhereemployees

canthrivebothpersonallyandprofessionally.Psychologicalsafetyisalsopromotedthroughstress preventionprogramswhichareavailableatmajor sites,givingemployeesthetoolsandsupportthey needtomaintainahealthybalanceintheirworkand personallife.

Compressedworkingweek

Lundbeckrecognizesthatflexibleworkingarrangementsboostemployees’wellbeingbysupporting flexibilityintheworkplaceandintheirworkday.In 2024,thetwo-yearpilotforcompressedworking weekscontinuedattheLumsås(Denmark)productionfacility.Thepilotgivesemployeestheoptionto compresstheirworkingtimeintofewerdays,and therebygettingmorefulldaysoff.Accordingtothe mostrecentevaluationinAugust2024,productivity hasnotdecreased,andsatisfactionishighamong thosewhoareworkingshorterweeks.Forofficebasedemployees,Lundbeck’sFlexibleWorkplace, FlexibleWorkday,andReducedHoursPoliciesapply, withlocalmanagementdecidinghowtoshapethe bestworkenvironmentineacharea.

Brainbreakrooms

In2024,sevendedicated brainbreakrooms have beenestablishedasspacesforpersonalsilenceat ourheadquartersinValby(Denmark).Theserooms aredesignedtobearefugeforemployeesfromthe stressorsanddistractionsofabusyenvironment, andcanbeusedformentalbreaks,aswellasfor spiritualandreligiouspractices.Similarinitiatives areimplementedatoursitesintheUSandPoland. Duetotherecentimplementation,Lundbeckhasnot yetputinplaceaformalprocessfortrackingtheeffectivenessofthe‘brainbreakrooms’.

Targets

Currently,thewellbeingofouremployeesismonitoredthroughourinternal‘OurVoice’survey(see page110),inwhichemployeescanassessseveral wellbeing-relatedstatements,including‘Employee healthandwellbeingisapriorityatLundbeck’ , Lundbeckprovidesmewithinformationandsupportto managemyhealthandwellbeing’,and Mymanager showsthatemployeewellbeingisimportant.Bymonitoringtheevolutionofthescoretothesestatements (i.e.,from0to10),Lundbeckaspirestoimproveemployees’wellbeingandtheirawarenessoftheavailablesupport.Theresultsaresharedwithemployees

internally,discussedinteamswiththerelevantmanager,andactionplansareputinplace.Allemployeesarealsoappraisedannuallyandhavetheopportunitytodiscussindividualtrainingneedsandcareer aspirationswiththeirimmediatemanager.Thepolicies,actions,andtargetsspecifiedaboveensurethat Lundbeckdoesnotcauseorcontributetomaterial negativeimpactsonownworkforce.

Diversity,Equity&Inclusion

Ourapproach(policies)

Since2009,LundbeckhasbeenasignatorytotheUN GlobalCompactandhasbeenactinginsupportof SDG5(GenderEquality)and10(ReducedInequalities).ThesecommitmentsaresteeredbyLundbeck’s DiversityEquity&Inclusion(DE&I)Policy(link),which guidestheactionsthattheorganizationtakestofosteradiverse,equitableandinclusiveculture,aswell astoensurethatkeypeopleandbusinessprocesses areinclusivebydesign.Accordingly,ourDE&IPolicy demonstratesLundbeck’scommitmenttotackling discriminationandtoenhancingequalopportunities.

TheDE&IPolicyisglobalinscopeandappliesto membersoftheBoardofDirectors,ExecutiveManagementandallotherLundbeckemployees.ItisdevelopedbyLundbeck’sGlobalDE&IOffice,endorsed bytheExecutiveManagementandapprovedbythe BoardofDirectors.ThepolicyisdesignedtoconsidertheinterestsofLundbeck’sownworkforce,asa diverseandinclusiveworkplaceisbeneficialforall employeesandforLundbeckasanorganization.

AtLundbeck,discriminationisnottoleratedinany form.Duetoitsbroadscope,thepolicydoesnotindividuallymentionspecificgroundsfordiscrimination,nordoesitincludeareferencetotheUNGuidingPrinciplesonBusinessandHumanRights.The DE&IPolicyisavailableonLundbeck’sintranetforinternalstakeholdersandatwww.lundbeck.comfor externalstakeholders.

AdvancingDE&I

LundbeckworkstoembedthetenetsoftheDE&I Policybypromotinganinclusivemindsetacrossthe organizationandcontinuouslyimprovingourpeople processesandpolicies.Lundbeckcontinuestowork onmitigatingunconsciousbiasesinitspeopleprocessesandensuringthatallemployeescomplete trainingonhowtorecognizeandmitigateunconsciousbias.Lundbeckalsotrainsallemployeeson culturalawareness,whichworkstowardsadvancing culturalintelligenceandpromotingeffectivecollaboration. LundbeckrecognizesgenderequalityasanotherimportantaspectofDE&I.Tofostergender equality,Lundbeckhasdevelopedtargetsongender balance–seetheDE&Itargetsonpage109formore detail.

Lundbeck’sNeurodiverseWorkplace Commitment

Lundbeckiscommittedtocreatingasupportive workenvironmentforallemployees,includingthose withdifferentcognitiveprofilesandthosewhoexperiencechangesinbrainhealthduringtheiremployment.Ifanemployeeeverexperiencesachangein theirbrainhealththataffectstheircurrentrole, Lundbeckwillexplorewaystoadaptworkingconditionstobettersuittheemployee,providetrainingto improvemanagers’abilitytosupportthem,andcontinuouslyraiseawarenessonthetopicacrosstheorganization.

Actions

ToachieveourDE&IPolicyobjectives,Lundbeckhas putinplaceanumberofactionstopromoteDE&I andreducebias.

DE&IAcademy

In2024,Lundbecklaunchedaninteractiveonline platformnamedtheDE&IAcademy.Theintended outcomeoftheDE&IAcademyistoeducate Lundbeck’sworkforceontheimportanceofdiversity, equity,andinclusion,andincreaseawarenessand

therebyloweringthelikelihoodofDE&Irelatedincidents.Theplatformisavailableandpromotedtoall employeesonLundbeck’sintranetandencompasses acombinationofe-learnings,TEDtalks,articles,and podcasts,coveringkeyDE&Itopicssuchasunconsciousbias,culturalawarenessandpsychological safety.

Aformalprocessfortrackingtheeffectivenessof thisinitiativeisyettobeestablished,asitsfocusis onawarenessandprevention.TheDE&IAcademy doesnotserveasoneofLundbeck’scurrentchannelsforinvestigatingincidentsandprovidingappropriateremedy.

ActionstoeffectivelypromoteDE&IacrosstheorganizationareevaluatedbyLundbeck’sGlobalDE&I office.Sincediscriminationandinequityarerooted indisinformationandprejudice,increasingawarenessacrossemployeeswasprioritizedin2024to supporttheirlearningonhowtobecomemoreinclusiveinone’severydaylife.Further,someLundbeck subsidiarieshaveadditionalinitiativestopromote DE&Iaccordingtolocalneeds.

Reducingbiasinitiative

OnepracticalwaythroughwhichLundbeckworksto avoiddiscriminationisbycontinuouslyreviewingits peopleandrecruitmentprocesses.Since2022, Lundbeckhasbeenrunningananti-discrimination initiativeinDenmarkandPoland,withtheaimofreducingunconsciousbiasinrecruitmentprocesses. The‘ReducingBiasInitiative’entailsasetofbias-mitigatingmeasures,includingthedeploymentofthirdpartytechnologiesfortheidentificationandeliminationofbiasesinthepre-interviewstage,andtheuse ofobjectiverecruitmentcriteriaintheselectionof potentialcandidates.Thisinitiativewasdesignedby Lundbeck’sPeople&Culturedepartmentbasedon researchandengagementwithrelevantstakeholdersandexpertsconcludingthattherecruitmentprocessisacriticalareatobeaddressedtotackleunconsciousbias.Byworkingonidentifyingunconsciousbias,Lundbeckseekstopreventandremedy incidentsofdiscrimination,therebyattractingadiversepooloftalent.Sinceitsimplementation,theeffectivenessoftherecruitmentprocessingeneralhas beentracked,withlimiteddataonthediversityof applicants.

TheDE&Iactionsdescribedabovearedesignedto addressandmonitorLundbeck’smaterialimpacts andrisksrelatedtoourownworkforce.

Targets

LundbeckcurrentlytracksprogressonDE&Ithrough itsgenderbalancetargets,linkedtoitslong-establishedaimtomaintainanoverallequalgendersplit forallpeoplemanagersglobally.

Lundbeckhas,since2021,hadavoluntary sustainabilitytargettoincreasetheshareoftheunderrepresentedgender(currentlywomen)yearonyear acrossseniormanagement1.In2024thenumberof womeninseniormanagementpositionswas35%as ofyear-endcomparedto36%womenin2023,correspondingtoa1%decreaseandthusnotmeetingthe target.ThedevelopmentisduetochangesintheExecutiveManagementandtheirdirectreports.The 2024genderbalanceforseniormanagersis,however,higherthanwhenthemonitoringofthisvoluntarytargetbeganin2020,atwhichtimethegender splitwas32%womenand68%men.Thevoluntary targetforseniormanagementisbeingretiredasa sustainabilitytargetasof2025,butwillstillbepart oftheinternalperformancemanagementreporting.

Goingforward,gendertargets will reflecttherequirementsofthenewDanishGenderBalanceAct comingintoforcein2025.Formanagement,thetargetscopeisuppermanagementinaccordancewith theaccountingpolicy.In2024,theshareofwomen inuppermanagementwas43%,upfrom38%in 2023.

In2025,thetargetistomaintainanevengender balanceinuppermanagementclosestto40%but notexceeding49%oftheunderrepresentedgender. SimilartargetsapplytoLundbeck’sBoardofDirectorstoachieveequalgenderdistributionamongall members,comprisingthoseelectedbytheGeneral Assemblyandthoseelectedbyemployees,seepage 112.

Lundbeck’sglobalgenderbalancetargetsareproposedbytheglobalDE&Ioffice,endorsedbytheExecutiveManagement,andapprovedbyLundbeck’s BoardofDirectors.TargetsonDE&IarerevisitedannuallybytheExecutiveManagementinconnection withitsgoal-settingprocess.

LundbeckengagesitsworkforceonDE&Imatters throughitsemployeeengagementsurvey-‘Our Voice’(seepage110).Thesurveyprovidesglobal

insights,enablingLundbecktomonitorresultsand defineareasoffocusbasedonopportunitiesforimprovement.Thesettingandtrackingofthegender balancetargetsisbasedonapplicableregulations. Progressontargetistrackedandreportedquarterly toExecutiveManagementandresultsareavailable tomanagers,aswellasacrossalllevels,tomonitor progressandidentifyareasofopportunity.

Increaseinshareofunderrepresentedgenderat seniormanagementlevel yearonyear.

Maintainanevengenderbalancein uppermanagementclosestto40%but notexceeding49%. N/A

anoverallinclusionscoreof8.52 intheannualemployeesatisfaction survey(ESS).

Engagingwithourworkforce

Lundbeckutilizesanemployeeengagementsurvey called‘OurVoice’toenableongoingfocusonengagementandactonwhatmattersmosttoourpeople.Thissurveyisrunthroughapartnershipwithan externalproviderandisusedtocollectfeedback fromemployeesandensureongoingdialogue acrosstheorganization.Onceanswersarereceived, employeeresponsesandengagementareanonymized.Thesurveyincludesquestionscoveringengagementandrelevantstrategicthemes,suchasdiversityandinclusion,wellbeing,andtransformation andchange.Afullsurveyisreleasedinthefirsthalf ofeachyear,followedbyashortersurveyinthesecondhalf.Surveysaresharedwithallemployees globally,exceptforcontingentworkersandemployeeswhorecentlyjoinedoraresoonleaving Lundbeck.Theoverallresultsofthefullsurveyare presentedtoemployeesbytheExecutiveVicePresidentofPeople&Culture(P&C)andarepublishedon Lundbeck’sintranet.Basedonthesurveyresults,the ExecutiveManagementdefinestheoverallfocusareasforLundbeckmovingforward.

OurVoiceaimstogainanunderstandingoftheperspectivesofpeopleatLundbeck,includingthoseparticularlyvulnerabletonegativeimpacts.

Forinstance,Lundbeckemployeesareaskedtorate theirlevelofsatisfactionwith Lundbeck'seffortsto supportdiversityandinclusion(e.g.,gender,ethnicity, disability,andsocio-economicstatus)’andtoexpress theextenttowhichtheyfeelthat everyoneistreated withrespectatLundbeck.Both OurVoice’surveys concludewithanopentextquestion,invitingemployeestoshareanyadditionalthoughtsorconcernsthroughthesurvey.Thisultimatelyenables employeestovoicetheirperspectivesandmostimportantlytobeheard.

The OurVoice processisstructuredtopromotethe valueofinsights,dialogue,andactionplanningin teamsacrossLundbeck.Toensureemployeeparticipation,upcomingsurveysarecommunicatedtoemployees.Allmanagersareexpectedtoensurecontinuousdialogueandfollowuponactionplanning withintheirteams.Theapproachforthisisguided byGlobalManagertrainingandtheongoingdevelopmentoflearninganddevelopmentmaterial.Employeescontributetoandactontheprioritiesdeterminedfortheirteams,andthesurveyparticipation rateistrackedandcommunicatedbothattheteam levelandthegloballevel.

Inadditionto OurVoice,Lundbeckmaintainsmultiplechannelsandformalinternalprocessesforemployeestovoicetheiropinionsandconcerns.These includeimmediatemanagers,workcouncils,trade unionrepresentatives,aswellaslocalPeople&CultureandEmployeeRelations.Thesechannelsare madeeasilyaccessibletoallemployeeson Lundbeck’sintranet.

Remediationandchannelstoraiseconcern

Allemployeesareencouragedtoreportincidents andraisecomplaintseitherdirectlytotheirmanagers,EmployeeRelations,localPeople&Culture,the ombudsmen,orthroughLundbeck’sCompliance Hotline(link)(seepage133).Thehotlineisasecure systemhostedbyathirdpartyandisavailableinternallythroughourintranetandexternallyon Lundbeck’swebsite.

Whenanissueisraisedthroughoneofthesechannels,itisassessedand,ifnecessary,investigatedto concludewhethertheclaimissubstantiatedornot, andtotakeappropriateactions.Theoutcomeis communicatedtorelevantstakeholders.Manyconsiderationsgointoeachreport,toensureaneffective,safe,anddiscretehandlingofincidentsfor

employees.Accordingly,thetypeofremedyprovidedandtheprocessformonitoringitseffectivenesscanvarydependingonthespecificcircumstancesofeachcase.

Additionalgrievancemechanismsareavailableto Lundbeckemployeesinordertoraiseandaddress anyconcerns.Theseincludetradeunionrepresentatives,theEuropeanWorksCouncil,andthelocal WorksCouncils,allofwhicharemadeavailableon Lundbeck’sintranet.Asfurtherspecifiedinsection PreventionandDetectionofEthicalConcerns(see page133),Lundbeckensurestheprotectionandanonymityofallemployeeswhomakeuseofanyofthe aforementionedchannels.

S1-6-Characteristicsoftheundertaking’semployees

AllpeopleinLundbeck'sownworkforcewhocouldmateriallybeimpactedareincludedinthescopeofthe disclosures.

Characteristicsoftheundertaking’semployees

As of 2024, Lundbeck’s workforce includes 2,517 male and 3,143 female employees. Headcount is distributed acrossseveralcountries,highlightingLundbeck’sglobalpresenceandlocalimpact.Intermsofcontracttypes, the majority of employees hold permanent contracts, with 2,991 females and 2,452 males in this category. Temporarycontractsaccountforasmallerproportionoftheworkforce,with65malesand152females.

Lundbeck’s employee turnover rate stands at 14.4%, which is continuously monitored to support workforce stabilityandengagement.

S1-9-Diversitymetrics

Genderdistributionandagedistribution

At the end of 2024, Lundbeck’s Board of Directors comprised 11 members. Among the General Assemblyelected members, two were female, and five were male, while the employee-elected members included two females and two males. This reflects a slight change from 2023, when the board had 12 members, including two female and six male General Assembly-elected members, with the same gender distribution among employee-electedmembers.

Inuppermanagement,femalerepresentationcontinuedtogrow.Bytheendof2024,Lundbeckhad67upper managementmembers,43%ofwhomwerefemale,upfrom38%in2023.

In terms of age distribution across the Lundbeck workforce, 10% of members were under 30 years old, 56% werebetween30and50yearsold,and34%wereover50yearsold.

S1-16-Remunerationmetrics(paygapandtotalremuneration)

Attheendof2024,ananalysisofourremunerationpracticesindicatedasmallgenderpaygap.Whilethegap isminor,weremaincommittedtoaddressingthisissue.Webelieveevenslightdisparitiesareunacceptable andwillcontinuetoprioritizeeffortstoeliminatethem.Thiscommitmentreflectsourdedicationtofostering equityandinclusion,ensuringthatallemployeesfeelvaluedandfairlycompensatedfortheircontributions.

ChangesinourmethodologyforcalculatingtheCEOpayratiohavepromptedareviewofourremuneration datamodels.Wewillactivelyrefinethesemodelstovalidatethecurrentratio,ensuringourcompensation practicesalignwithindustrystandardsanddemonstratefairnessandtransparencyforallstakeholders.

S1-17-Incidents,complaintsandseverehumanrightsimpacts

Incidents&Complaints Unit 2024

Numberofcasesreportedthroughthechannelsforownworkforce No. 14

NumberofcomplaintsfiledtoNationalContactPointsforOECDMultinationalEnterprises No. -

Numberofdiscriminationcasesreported No. 14

Numberofsubstantiateddiscriminationcases No. 9

Amountoffines,penalties,andcompensation

In2024,14discriminationcaseswerereported,ofwhich9weresubstantiated.

Accountingpolicies

Employeeheadcount,gender,age,country,andturnover

EmployeedataisrecognizedbasedonrecordsfromtheGroup’sHRsystem.Thetotalnumberofemployees, includingpermanentandtemporaryemployees,isexpressedonaheadcountbasisasofyear-end.

Theemployeeturnoverrateiscalculatedasthenumberofpermanentemployeeswhohaveleftthecompany withinthereportingyeardividedbythetotalaveragenumberofpermanentemployeesduringthereporting year.Allnumbersaregivenonaheadcountbasis.

PleaserefertotheNote4(Employeecost)intheGroupFinancialStatementsforthemostrepresentative numberintheFinancialStatements.

Agedistribution

Theagedistributioniscalculatedbydeterminingthenumberofemployeeswithineachagegroupandexpressingthisasaproportionofthetotalnumberofemployees.Allnumbersaregivenonaheadcountbasis asofyear-end.

-

Genderdistributionattopmanagement

Thetotalnumberoftheunderrepresentedgender(female)electedbytheGeneralAssemblyandthe employee-electedmembersisdividedbythetotalnumberofmembersontheBoardofDirectorsforH. LundbeckA/S.

UppermanagementincludestheExecutiveManagementortheemployeesatthesamelevelasExecutive Management(e.g.,theCEO,EVPs),aswellasemployeeswhoreporttoExecutiveManagementandhave peoplemanagementresponsibilities.

TopmanagementincludestheBoardofDirectorsanduppermanagement.Genderforthetopmanagement genderbalanceiscategorizedasfemaleormale,andgenderbalanceisreportedastheshareoftheunderrepresentedgenderinthetotal.

Genderpaygap–unadjusted

Thegenderpaygapiscalculatedasthepercentagedifferenceinaveragebasepay(inDKK)betweenmaleand femaleemployees,relativetotheaverageannualpayofmaleemployees.Annualbasepaylevelsareusedin thiscalculationduetolimiteddataavailabilityforhourlypaylevels.Lundbeckiscommittedtoenhancingdata qualityonthistopicinfuturereportingperiods.

Genderpaygap–adjusted

Thegenderpaygapisdeterminedbyanalyzingtheaverageannualbasesalary(inDKK)formaleandfemale employees,bypaygradeandcountry.Thepaygapsareaggregatedtoacountrylevelandweightedbasedon thenumberofLundbeck’semployeesineachrespectivecountry.Certainpaygradesincountrieswhereapay gapcannotbecomputedduetoonlyoneofthetwogendersbeingrepresentedonthespecificpaygradeare excludedfromtheconsolidatedpopulation.Thecountry-specificpaygapsareaggregatedtoaglobalaverage anddividedbythetotalnumberofLundbeck’semployeestodeterminetheoverallaveragegenderpaygap. Annualpaylevelsareusedinthiscalculationduetolimiteddataavailabilityforhourlypaylevels.Lundbeckis committedtoenhancingdataqualityonthistopicinfuturereportingperiods.

CEOpayratio

TheCEOpayratioiscalculatedbydividingtheCEO'sannualtotalremuneration,asreportedintheRemunerationReport,bythetotalremunerationofthemedianemployeefortheGroup.Remunerationincludessalary, bonuses(STIandLTI),allowances,pension,andallone-timepaymentsmadeduringtheyear.

Themedianemployeeisidentifiedbasedonbasesalary,afterwhichtheirtotalremunerationisusedtocalculatetheCEOpayratio.Lundbeckiscommittedtoenhancingdataqualityonthistopicinfuturereportingperiods.

Incidents&Complaints

Thenumberofcasesreportedthroughthechannelsforownworkforce,isthetotalnumberofcomplaintsreportsfiledthroughthechannelstoraiseaconcern.

Casesrelatedtodiscriminationincludeallreportedandinvestigatedcaseswithinthereportingyear.These casesencompassdiscriminationbasedongender,racialorethnicorigin,nationality,religionorbelief,disability,age,sexualorientation,orotherrelevantformsofdiscrimination.Incidentsofdiscriminationalsoinclude incidentsofharassmentasaspecificformofdiscrimination.Discriminationconcernscanberaisedthrough variouschannelssuchasdirectlytotheirmanagers,toEmployeeRelations,tolocalPeople&Culture,tothe ombudsmenorthroughLundbeck’sComplianceHotline

GenderbalanceSeniormanagement(target)

GenderbalanceforseniormanagementincludesallExecutiveVicePresidents,SeniorVicePresidents,and VicePresidents.Genderbalanceisassignedasfemaleormale,andgenderbalanceisreportedastheshareof theunderrepresentedgenderofthetotal.

Workersinthevaluechain

Lundbeckworkswithitssupplierstofostersustainable,safe,andrespectful workenvironmentsforeveryonecontributingtoourglobalvaluechain.

Ourapproach(policies)

Asaglobalcompany,Lundbeckrecognizesitsresponsibilitytocontributetothesafetyandwellbeing ofworkersacrossitsvaluechain.Aspartofourdue diligenceprocesses,Lundbeckhasseveraloperationaldocumentsinplacewhichsetoutourcommitmentstosafeguardhumanandlaborrights,includingtheHumanRightsStatement(link),CodeofConduct(link)andThird-PartyObligations(link).

Throughthesedocuments,Lundbeck’ssuppliersare contractuallyobligedtoadheretolocalandinternationallyrecognizedlaborrightsandsustainability standardssuchastheUNGlobalCompactandthe SustainableDevelopmentGoals.Inaddition,thirdpartyintermediariesmustcontractually acknowledgeandadheretoLundbeck’sCodeofConductandThird-PartyObligations,whichexplicitly emphasizeacommitmenttorespectinghumanand laborrights.

Processesforengagingwithvaluechainworkers

Theperspectivesofvaluechainworkersinform Lundbeck’sdecisions,activities,andthedevelopmentofpolicies.Insightsaregainedbyinternalsubjectmatterexperts,asinformedbycurrentresearch onworkingconditionsinthechemicalandpharmaceuticalindustry,aswellasthecasesaddressedby theComplianceHotlineandtheHealth,Safetyand Environment(HSE)supplieraudits.

TheHSEsupplierauditsareundertakenonsuppliers basedonariskapproachandcoverbothhuman rightsandhealthandsafetytopics.Sinceourvaluechainworkersinthechemicalsindustryareconsideredmorelikelytobevulnerabletonegativeimpacts,Lundbeckconductson-siteauditsofallchemicalsuppliersinhigh-riskcountries.Duringtheseaudits,workerscanbeinterviewed,andtheirfeedback isusedtodevelopcorrectiveactionplansandfollowupaudits.Auditsareimplementedpriortoapprovingahigh-risksupplierandareapartofLundbeck’s standardauditprocesses.TheHSEdepartmentisresponsibleforimplementingLundbeck’sHSEPolicy (link),ensuringthaton-siteauditsareundertaken andthatongoingmonitoringisperformed.

Chemicalsuppliersinlow-riskcountriesareaudited bytheQualitydepartment,whichraisesanyissues regardingworkingconditionstotheHSEdepartment forfollow-up.

HumanRightsStatement

Lundbeck’scommitmenttorespectinghumanand laborrightsacrossourglobalvaluechainissetout inourHumanRightsStatement,whichappliestoall Lundbeckoperationsandvaluechainactivities. Throughthisstatement,Lundbeckadherestothe UniversalDeclarationofHumanRights(UNDHR),the InternationalCovenantonCivilandPoliticalRights (ICCPR)anditssecondoptionalprotocol,theInternationalCovenantonEconomic,SocialandCultural Rights(ICESCR),othercoreinternationalhuman

rightsinstrumentsdefinedbytheOfficeoftheHigh CommissionerforHumanRights(OHCHR),aswellas fundamentalILOconventions.Theaccountabilityfor theimplementationofLundbeck'sHumanRights StatementlieswiththeCorporateSustainabilitydepartment,whichreportsdirectlytoLundbeck’sGeneralCounsel.Ourframeworkforrespectinghuman rightsisbasedontheUNGuidingPrinciplesonBusinessandHumanRights,theOECDGuidelinesfor MultinationalEnterprises,theUNGlobalCompact Principles,andourcommitmenttospecificSustainableDevelopmentGoals(SDGs)andtheirtargets.By visitingLundbeck’swebsite,externalstakeholders canaccessourHumanRightsStatementandreport concernsconfidentiallyviatheComplianceHotline (link).Further,Lundbeckconductsduediligenceprocedurestoidentifyandaddresspotentialhuman rightsimpacts.

Third-partyobligations

AllthirdpartiesinteractingwithLundbeckmustadheretotheUNGlobalCompactprinciplesandthose outlinedinourCodeofConduct.Inaddition,third partiesmustliveuptoLundbeck’sThird-PartyObligations,whichcomplementthescopeandimplementationofourCodeofConduct.Theobligations entailthatLundbeck’sthirdpartiesmustensure compliancewithapplicablenationalandinternationallawsrelatingtohumanandlaborrights.Specifically,thirdpartiesmustupholdtheabolitionof childlabor;maintainhealth,safety,andenvironment procedurestoensurecompliancewithapplicable

laws,regulations,guidelines,andindustrystandards;andprovideemployeestherighttorest,aminimumincometomeettheirneeds,protection againstcoercionanddegradingtreatmentordiscrimination,andtherighttofreedomofassociation.

Whiletheobligationsdonotspecificallyrefertohumantrafficking,theysupporttheprinciplethatthese practicesshouldbeeliminated.Inaddition,although workersinthevaluechainwerenotdirectlyengaged whendraftingtheseobligations,thepolicyiscreated tosafeguardtheirbestinterestsandisbasedoninternationallyrecognizedframeworkssuchasthe OECDGuidelinesforMultinationalCompanies.

CodeofConduct

Lundbeckconsidersasafeandcompliantworking environmenttobefundamentalforallworkplaces. Ourcommitmenttowardsworkers’safetyandwellbeingacrossthevaluechainiscoveredbyourCode ofConductasfurtherspecifiedonpage131.

Remediationandchannelstoraiseconcern

OurapproachforaddressingconcernsandgrievanceswithinourvaluechainisgroundedintheprinciplessetoutbyourCodeofConduct.Theseenable remediationtoanyraisedconcernsinawaythatis proportionatetotheseverityoftheissue.

AtLundbeck,wearededicatedtocontinuouslyenhancingourprocessestoensureappropriateremediationforaffectedstakeholdersininstanceswhere werecognizethatouractionshavecausedorcontributedtonegativeimpacts.

Lundbeck’sComplianceHotlineisexternallyavailableandtherebyaccessibletoallvalue-chainworkers, enablingthemtoraiseconcerns,whichwillbethoroughlyinvestigatedandaddressed.TheeffectivenessofLundbeck’sengagementwithvalue-chain workersisassessedandtrackedviatheCompliance HotlineandtheHSEaudits(seepages116&133).

GlobalComplianceperiodicallyreportsananonymizedsummaryofglobalreportedclaimsofpotentialmisconducttotheAuditCommitteeandthe GlobalComplianceCommittee.Investigationconclusionsandrecommendationsmaybesharedwiththe AuditCommittee,GlobalComplianceCommittee, and/orExecutiveManagementforendorsementor furtheraction.WhileGlobalComplianceisresponsiblefortheinvestigationofpotentialmisconduct, managementisresponsibleforsecuringremediationordisciplinaryactions.

Actionsandtargets

TheHSEauditsandComplianceHotlineareprocessesundertakenbyLundbeckaspartofourstandardwayofworking.Forthisreason,in2024nokey actionswereundertaken,ortargetssetregarding value-chainworkers’healthandsafetyorhuman rights.WiththeambitiontoupholdthecommitmentsoutlinedinLundbeck’spolicies,theauditresultsaretrackedandanyongoingissuesareclosely monitoredandfollowedupon.

ThecasesreportedthroughtheComplianceHotline areaddressedfollowingastrictprocedureforinvestigationsandtrackingtheoccurrenceofreports(see page136).Theseprocessesarecarriedoutaspartof thenormalworkatLundbeck’sdepartments. Lundbeckalsomaintainsaprocurementandthirdpartyintermediaryduediligencesystem,withthe aimoflimitingimpactonsuppliersandtheirworkforce.Formoreinformation,seeResponsibleSourcingonpage134.

Consumersandend-users

Lundbeckworksdayinanddayouttoensureavailabilityofneurological andpsychiatrictreatments.

Patientvoice Potentialpositiveimpact

Accesstohealth

- Inequalityinaccesstohealth Systemic,potentialnegativeimpact

- Riskofpricing,reimbursement andaccess Financialrisk

Productsafetyandquality

- Productsafetyandquality Systemic,potentialnegativeimpact

- Riskoffailureof pharmacovigilance Financialrisk

Responsibleandethicalmarketing Systemic,potentialnegativeimpact

Seefurtherdetailsonpage66.

Innovationintreatment

Ourapproach(policies)

InLundbeck,werecognizethatinnovationisthelifebloodofourbusinessmodelandessentialtoour abilitytodeliveronourpurposeofimprovingthe livesofpatientswithbraindiseases.Innovationin treatmentisLundbeck’smostvaluablecontribution tosocietyandsustainabledevelopment.Weare committedtodrivingfocusedinnovationandcuriouslyexploringnewbreakthroughtreatmentswithin neuroscience.Thiscommitmentisreflectedinour businessstrategy,ourinvestmentinresearchand development(R&D),andourapproachtocollaboratingwithexternalpartners.

Lundbeck’sglobalFocusedInnovatorStrategy, launchedin2024,isacornerstoneofourcommitmenttoacceleratingthedevelopmentofnewtreatmentsforbraindiseases.TheFocusedInnovator Strategycombinesinternalandexternalinnovation elementstoprovidethebusinesswiththenecessary toolstofocus,scaleandaccelerateitsR&Dpipeline. Somekeyelementsofthisinnovationapproachencompass,forinstance:

• Patient-centricity:Weprioritizetheneedsofpatients,ensuringthatourresearchand

developmenteffortsarefocusedonareaswhere wecanmakethemostsignificantdifference.

• Scientificexcellence:Wearecommittedtoconductingrigorousscientificresearch,employing cutting-edgetechnologies,andcollaboratingwith leadingresearchersinthefieldofneuroscience.

• Focusonbraindiseases:Weconcentrateoureffortsondevelopinginnovativetherapiesforbrain diseases,anareaofsignificantunmetmedical need.

ThestrategywasunveiledbytheCEO,whoisaccountableforitsimplementation,anditisavailable internallyviatheintranetandhasbeencommunicatedexternally.

Anothercriticalinnovationdriveristheutilizationof newtechnologiestoexplorenoveltreatmentoptions forcertainbraindiseasesanddevelopinnovative drugmodalities.ThisapproachacceleratesR&Dprocessesandoffersopportunitiesforearlyriskmitigation.Forthis,Lundbeckengagesinimportantstrategicpartnershipswithothercompaniestoaccelerate researchandtherapeuticinnovationforneurological diseases.Inthissense,Lundbeckexploresopportunitiestostrategicallycombineinternalinitiatives,

andprojectsandresourceswithexternalopportunitiestocomplementandcreateastrongpipeline. Thoseactionscomprise,forinstance,externalacademiccollaborationsandindustrypartnershipsintrinsictosuccessandotheropportunitiessuchasacquisitions.

Furthermore,Lundbeckannouncedacapitalallocationprogramin2024toensuretheresources neededtoimplementtheFocusedInnovatorStrategyandbuildarobustmid-to-long-termpipeline.

Actions

Innovationcantakemanyforms,buttheoutcomeis alwaysfocusedonhowLundbeckcanimprovethe livesofpatientsandexploreunmetmedicalneeds. Basedontheapproachforourinnovationintreatment,Lundbeckhastakenthefollowingactionsto enhanceinnovationinitsR&Dpipelineandexplore unmetmedicalneeds:

Strategicacquisitionstocomplementinternal innovation

InDecember2024,LundbeckannouncedtheacquisitionofLongboard,apharmaceuticalcompanyresponsibleforthediscoveryforbexicaserin.

Bexicaserinhasthepotentialtobeabest-in-class treatmentforseizuresassociatedwithDravetsyndromeandLennox-Gastautsyndrome,andafirst-inclassoptionforotherDevelopmentalandEpileptic Encephalopathies(DEE).Thisaddressesacriticalunmetneedforpatientssufferingfromrareandsevere epilepsies,forwhichthereareveryfew,goodtreatmentoptionsavailable.

Thisactionalignswithourambitiontodeliverbreakthroughtreatmentsandreinforcesourleadershipin ahigh-potentialarea,drivinglong-termgrowthand advancingsolutionsforpatientswhoneedthem most.

Addressingunmetneeds

Lundbeckiscommittedtoaddressingsignificantunmetmedicalneedsacrossvariousseveredebilitating braindiseasesbyexpandingitsinnovationpipeline andenhancingtreatmentopportunities.

Ourpipelineprogresspresentedonpage28reflects ourinitiativesandprojectsinourR&Dpipeline.We aresuccessfullyprogressingourpipelinethrougha rigorousdevelopmentprocessdefininghowweplay

whenweletthebiology,themoleculeandthepatientspeak.

InNovember,LundbeckinitiatedaphaseIIItrial withamlenetugforthetreatmentofMultipleSystem Atrophy. MSAisaseriouslydebilitatingdiseasewith noavailabletreatmentoptionsandamlenetughas thepotentialtobethefirstdisease-modifyingtherapywithanoptiontoslowclinicalprogressionfor peoplewithMSAaddressingacriticalunmetneed.

InMarch,aclinicalphaseIIbdose-findingtrialwas initiatedwithLuAG09222.LuAG09222hasthepotentialtobecomefirst-in-classtherapyformigraine prevention.Migraineisacomplexandincapacitating neurologicaldiseasethatimposesbothasocialand financialburden,affectingaround135millionpeople intheG7countriesplusChina.Repeatedmigraine attacks,andoftentheconstantfearofthenextone, damagefamilylife,sociallife,andworklife.

LighthouseLifeScience

AnotherwayLundbeckisinnovatingisthroughpublic-privatepartnerships.Continuingin2024, Lundbeckhasbeensteeringthepublic-privatepartnershipLighthouseLifeScience,whichaimstoensurebetterhealthandmoreequityinhealth,while strengtheningeconomicgrowth.DuringLundbeck’s leadfrom2023-2025,thepartnershipfocusinthe partnershipisonmentalhealth.TheLighthouse aimstosupportthenational10-yearpsychiatryplan setbytheDanishGovernment,withparticular

emphasisonfollowingthreepriorityareas:children andadolescentswithmentalhealthchallenges,enhancedtreatmentforseverementaldisorders,and anti-stigmainformationcampaigns.Toensurethe effectivenessoftheprojectsdevelopedwithinthe Lighthouse,evidence-basedmetricsareimplementedtoassesspatientoutcomes,withdatasystematicallycollectedthroughoutallprojectphases. Addressingmentalhealthchallengesrequirea strongcollaborativeeffortacrosspublicandprivate stakeholders.Innovativesolutionsareessentialto supportindividualsfacingpsychologicalchallenges andtostrengthenoverallmentalhealthacrosssociety.

StrategicpartnershiptoleverageAIfordrugdiscovery

In2024,Lundbeckenteredastrategicpartnership withIambicTherapeuticstoleverageAI-drivendrug discoveryforneurologicaldiseases,specificallytargetingunmetneedssuchasmigraine.Byintegrating Iambic'sadvancedAIplatform,includingNeuralPLexerforprotein-ligandstructureprediction,this collaborationenhancesthespeedandefficiencyof identifyingnoveltherapeuticcandidates.ThepartnershipreflectsLundbeck'scommitmenttoinnovationandtheuseofcutting-edgetechnologiestoacceleratethedevelopmentoftransformativetreatments,addressingcomplexbrainhealthchallenges anddeliveringsolutionsforpatientswithcriticalunmetmedicalneeds.

Reallocation

ofresourcestosupportinnovation

Lundbeck'snew2024capitalallocationprogram playsapivotalroleindrivingsustainableinnovation byensuringstrategicinvestmentsinourR&Dpipeline.Thisdisciplinedapproachenablesustoprioritizehigh-impactneuroscienceprojects,advance breakthroughtherapies,andaddresscriticalunmet medicalneeds.Byallocatingcapitaltotransformativeinitiativessuchastargetedacquisitionsand technology-drivenresearch,weareabletosolidify ourstrongpositiontoadvancebrainhealth.Thecapitalallocationprogramunderpinsourabilitytodelivernewtreatments,enhancingpatientoutcomes whilemaintainingfinancialresilienceandshareholdervalue.Withthisprogram,anR&Dratiointhe rangeof20–25%toaccelerateandexpandourR&D pipelineisexpected.

Targets

TherearecurrentlynosustainabilitytargetsforInnovationintreatment,butitseffectivenessistracked throughtheworkoftheentireLundbeckorganization,includingtheeffectivenessofnewtreatments forpatients.Themeasureofprogressintreatment innovationliesintheeffectivenessofnewtherapies andtheirabilitytoimprovepatientlives,whichisat theheartofLundbeck’swork.

Channelsforengagement

Oneimportantchannelforengagementregarding innovationintreatmentiscenteredin‘lettingthepatientspeak’,whichisoutlinedin‘Patientvoice’page 121.

Patientvoice

Lundbeckisdedicatedtodeliveringtransformative outcomesforindividualslivingwithbraindiseases. Forseveralyears,akeytechniqueforaccomplishing thisgoalhasbeentoplacethepatientvoiceatthe centerofourwork.Since2020,Lundbeck’sR&Dorganizationhasactivelyworkedwith‘patient-focused drugdevelopment’principlestoincorporatepatient perspectivesintothedrugdevelopmentprocess. Thisapproachnotonlyenhancestherelevanceof Lundbeck’sproductsforpatientswithlivedexperiencebutalsomakesthedevelopmentprocessmore efficientandpatient-centered.

Inthecontextofclinicaltrials,Lundbeckhasdevelopedinternalguidanceforincorporatingpatientinputintothedesign,conduct,andfeedbackprocesses,aswellasaprocedureforconsideringtheinclusionofrepresentativepopulationsinclinicalresearch.

Ourapproach(policies)

Lundbeck’sPatientCentricityStrategy(link)isintendedtoestablishafocusonthepatientexperience throughoutthevaluechain.Thisrequiresprioritized andconsistentpartnershipswiththelived-

experiencecommunityacrosstheorganization,includinginmarketactivities,clinicaltrials,andthedevelopmentofnewmedicines.

ThePatientCentricityStrategysetsoutLundbeck’s commitmenttoembeddingpatientcentricityacross theorganization,thusinformingandsupportinglocalpoliciesandcompany-wideinitiatives.Thisstrategyhasbeendevelopedwiththesupportof Lundbeck’sPatientInsightsandGlobalPublicAffairs departments,bothofwhomworkdirectlywithpatientcommunities.Furthermore,thestrategyhas beenreviewedbyseveralrelevantexternalstakeholders,includingpatientorganizationsactivein Lundbeck’sdiseaseareas.Lundbeck’scommitment tobeingpatient-drivenalignswithitsethicalstandardsinresearchandbusiness,adheringtotheUN’s humanrights-basedapproachtohealth.

ThestrategyisapprovedbytheSeniorVicePresident(SVP)ofCorporateCommunications&PublicAffairs,whoisaccountableforitsimplementation.The PatientCentricityStrategyisavailableat www.lundbeck.com,havingbeenlaunchedatthe endof2024.Thestrategywillbecommunicated

externallytopatientpartnersandcollaboratorsin relevantpatientcommunities.

Actions

Letthepatientspeak

Lundbeckiscommittedtopatientcentricity,withthe goalofintegratingthepatientvoicethroughoutthe lifecycleofproductsandacrosstheorganization. Thepatientperspectiveiswovenintothefabricof Lundbeck’soperationsthroughmultipleinitiatives, largelyspearheadedbyLundbeck’sPatientInsights andPublicAffairsdepartments,withtheirdepartmentsleadsholdingoperationalresponsibility.Such initiativesaimto‘letthepatientspeak’andinclude invitingpatientsandcaregiverstosharetheirlived experienceswithLundbeckemployees,establishing patientadvisoryboardsforthediseaseareasrepresentedinLundbeck’spipeline,andactivelyseeking patientinputinthedesignandoperationsofclinical trials.Directengagementwithpatientsandincorporatinginclusionanddiversityinsuchengagements arekeycomponentsofaddressingthepatientvoice inLundbeck’sactivities.

Further,Lundbeckcollectspatientexperiencedata toensureacomprehensiveandrepresentativeunderstandingofthepatientvoice.Whilethereiscurrentlynoactionplanspecificallydedicatedtothepatientvoice,thisintegratedapproachallowsforthe comprehensiveandcontinuousinclusionofpatient perspectivesinallaspectsofLundbeck’swork. Lundbeckiscurrentlyexploringpossibilitiesforobtainingfeedbackonpatientinvolvement,forinstancethroughsatisfactionsurveysasinputsto measuringpositiveimpact.

Targets

Lundbeck’sapproachtopatientcentricitythrough embeddingthepatientvoiceinthedevelopmentof medicinesistailoredtotheindividualneedsandopportunitiesforspecificcompoundswithin Lundbeck’spipeline.Giventherecentlaunchofthe PatientCentricityStrategy,Lundbeckdoesnotcurrentlyhavetargetsorothermethodologiesinplace totrackitseffectiveness.

Accesstohealth

Ourapproach(policies)

Asaglobalpharmaceuticalcompany,Lundbecksignificantlyimpactsindividual’saccesstohealth.Recognizingtheimportanceofthisissue,Lundbeckhas establishedseveralgoverningpolicies,withthecornerstonebeingtheGlobalAccesstoHealthStrategy (link).

ThisstrategyconstitutesLundbeck’soverarching globalpolicyforaccesstohealthandoutlinesouraspirationsforsupportingpolicychange,raising awareness,advocacy,education,andproductdonationstoenhanceaccesstohealthforall.Approved bytheExecutiveManagementin2020,thestrategy alignswiththeSustainableDevelopmentGoal3 (GoodHealthandWellbeing)aswellastheWHO’s4 RighttoHealthprinciplesandGuidelinesforMedicineDonations.Althoughtheseguidelinesemphasizetheimportanceofrespectinghumanrightsand engagingwithconsumersandend-users,theydo notdetailspecificmeasuresforaddressinghuman rightsimpactsnorincludeadedicatedpolicyfor remedyingsuchimpactsinthecontextofaccessto health.

ThestrategyispubliclyavailableonLundbeck’swebsiteandinourSustainabilityReportssince2020.

Globaladvocacy

Lundbeckcontinuouslywantstolearnfrompeople withlivedexperience,theirfamilies,andthe healthcarecommunity.Forthepast10years, Lundbeckhashostedanannualglobaladvocacy event,the#1VoiceSummit.Thisevent,whichisthe responsibilityofLundbeck’sSVPofCorporateCommunication&PublicAffairs,unitesglobalandlocal patientcommunitiestosharebestpractices,exchangeideas,collaborate,andamplifythevoicesof thosewithlivedexperiencesofneurologicalandpsychiatricdisorders.Thelatest#1VoiceSummit,heldin June2024,featuredover60participantsfrom35differentpatientadvocacygroupsinneurologicaland psychiatrichealth,representing10countries.

Globalpricing

Lundbeckacknowledgesthechallengesfacedby healthcaresystemsunderpressurefromrisingdemands,anditrecognizesconcernsexpressedonthe affordabilityofinnovativemedicines.

Lundbeck’sGlobalPricingPosition(link)emphasizes ourcommitmenttomakingourinnovativemedicinesaffordableandaccessible,acknowledgingthe financialchallengesfacedbyhealthcaresystems worldwide.ThePricingPositionoutlinesourcommitmenttoimplementpricingstrategiesthatreflects thevalueofLundbeck’streatmentswhileconsideringtheeconomicconditionsofdifferentmarkets. Additionally,Lundbeckcollaborateswithhealthcare providers,authorities,patients,andpolicymakersto addresspricingconcernsandenhanceaccesstoessentialtreatments.Thisensuresthatthepricesof Lundbeck’streatmentsnotonlysupportthecompany’sbusinessobjectives,butalsoaddressthe needsandconcernsofthosedirectlyimpactedby theirimplementation.

EndorsedbyExecutiveManagement,thePricingPositionisdevelopedbyLundbeck’sGlobalPricingdepartment,whichisalsoresponsibleforsettingand approvingprices.Lundbeckrespectsvariousthirdpartystandardsandinitiativesbyensuringthatour pricingstrategiesalignwithglobalhealthcareregulationsandethicalguidelines,therebyenhancingthe affordabilityandaccessibilityofourmedications.The

Actions

Unlockingpatientaccessthroughpricing

Toachievesustainablepatientaccesspricingmust befairrelativetothemarketconditionsinwhich Lundbeckoperates.ThekeyobjectiveofthePricing andMarketAccessdepartmentistounlocksustainablepatientaccess,achievingthebroadestpossible accesstopatientsinneedwhilerunningacommerciallysustainablebusiness.AccomplishingthisrequiresdedicatedattentiontoLundbeck’spipelineto ensurethatthevaluepropositionanddifferentiation ofourassetsareasstrongaspossibleandaresuitableforpayerassessment.Thisapproachaimstosecurefavorablepayerdecisions,enablingpatientsto accessandaffordourmedicationsinvariouscountries.Inaddition,agovernanceprocessanchored withmembersofExecutiveManagementisinplace tofacilitateacarefulreviewofpricelaunchesand approvalsworldwide.From2025andonwards,an equity-basedtieredpricingframeworkwillbedevelopedtofacilitatethedevelopmentofpricepolicies andwillsupportpricedecision-making.

PricingPositionismadeavailableonLundbeck’s website.

PartneringwiththeRedCrossforpsychosocial supportinUkraine

InDecember2023,LundbeckcommittedDKK5milliontosupportDanishRedCrossMentalHealthand PsychosocialSupport(MHPSS)activitiesinUkraine during2024and2025. Inalignmentwiththiscommitment,DKK2millionhasbeenpaidin2024.This fundingwillenabletheUkrainianRedCrosstoexpandvitalpsychosocialsupportforvulnerablechildrenandadultsaffectedbythewar,includingpsychologicalfirstaid,child-friendlyspaces,andtraining forRedCrossvolunteersandstaff.Lundbecktracks theeffectivenessofitsimplementationofthisaction throughannualimpactreportsfromtheDanishRed Cross,whichdetailactivities,resourceallocation,and participation.Basedontheseevaluations,adjustmentsaremadeforthefollowingyearsuchas changingworkshoplocations,timings,andmethods tobetteraddressmentalhealthchallenges.

ConsideringthedecreaseinAccesstoHealthbecauseofthewar,Lundbeckidentifiedthenecessary actionstoaddresstheincreaseinmentalhealth problemsinUkrainethroughdialoguewithinternal andexternalstakeholders.TheDanishRedCross providedexpertknowledgeandfirsthandaccounts

fromUkraine,andLundbeck’sremainingemployees inthecountryconfirmedtheappropriatenessofthe MHPSSprogram.

Targets

Medicaleducation

Lundbeck’s2024targettopromoteaccessto healthcareentailslaunchingaglobalplatform throughtheLundbeckInstitutetoprovideindependentmedicaleducationtohealthcareprofessionals. ThistargetreflectsLundbeck’sunderstandingthat anadaptiveandpersonalizedapproachtoaddressinghealthcareprofessionals’learningneedswillimprovepatientoutcomesandhealthcareresilience. Themedicaleducationplatformbuildson Lundbeck’slong-standinghistoryofprovidingevidence-basedneurologyandpsychiatryeducational materialandtraining.Theplatformwillenablethe measurementofthelearningactivities,theoutcome, andtheeffectonaccesstohealthinunderservedareas.Thetargetwasmetwiththeglobalplatform launchedinearly2024,withCanadaservingasthe pilotsubsidiary.Itiscurrentlybeingassessed whethertheplatformshouldbeexpandedintonew geographiesanddiseaseareasfrom2025onward.

Productdonations

Lundbeckalsohassetanannualtargetforreaching patientsinlow-andmiddle-incomecountries throughdonations.Forfouryears,Lundbeckhas partneredwithInternationalHealthPartners(IHP), whohasaidedLundbeckingrowingthecharitable donationprogram.Thispartnershipensuresthatthe targetsarebothrealisticandambitious.Uponrequest,Lundbeckdonatesmedicationthroughcharitableclinicsinthelow-andmiddle-incomecountries. Thesedonations,manufacturedspecificallyforthis purpose,enableIHPstoruntargetedprogramsin theregionthroughtheirnetworkofpartnerclinics. ThisinitiativesupportsLundbeck’sGlobalAccessto HealthStrategybyprovidingaccesstounderserved communitiesandsupportingpeopleaffectedby neurologicalandpsychiatricconditions.Theimpact ofthesedonationsismeasuredbythenumberof patientsreached,withatargetof2,500patientsfor 2024.Lundbeckachieveditstarget,withanestimated5,860patientsreachedthroughthedonated treatmentinlow-andmiddle-incomecountries.

Theperformanceagainstthetargetsistrackedannuallyandreportedexternallyintheannualreport, withLundbeckhavingmetoroutperformedthetargeteachyearsofar.Lundbeck,incollaborationwith NGOIHP,hasconsultedclinicstoestimatetheneed fordonatedproductsoverthenextfiveyears,consideringlikelyscenariosofconflict,economiccrisis, andrefugeecamps.Basedontheseinsights, Lundbeck’sglobalsupplychain,productquality,and corporatecomplianceteamshavesetrealisticannualtargets,accountingforthetimeandresources neededforduediligencewhenexpandingtomore clinics,countries,andproducts.

Channelsforraisingconcernsandremediation

WhileLundbeckdoesnotcurrentlyhaveaspecific channelinplaceregardingaddressingconcernson AccesstoHealth,weencouragepatientsand healthcareprofessionalstoutilizeLundbeck’sother availablechannels,suchas,theadverseeventreportingpageonwww.lundbeck.com,orbycontactingLundbeckdirectly,toaddressconcerns.

2024Target Status 2025Target SDG

Launchglobalplatformtoprovideaccessto healthcareprofessionalswithindependentmedical educationthroughLundbeckInstituteactivities N/A

Donatetreatmentforatleast 2,500patientsinlowandmiddle-incomecountries(LMICs)throughproductdonationpartnership

Donatetreatmentforatleast 3,000patientsinLMICsthrough productdonationpartnership

In2024,donatedtreatmentsincreasedfrom3,325in2023to5,860,drivenbyexpandedregionalcoverage, higherpartnerrequests,andemergencyresponseefforts.Themajorityofdonationsweredirectedto Ukraine,withsmallercontributionstoSyriaandLebanon.

Accountingpolicies

AccesstoHealth

Donatedtreatmentinlow-andmiddle-incomecountriesreferstothenumberofpatientspotentiallyreached throughLundbeck’smedicinedonationprogram.Thenumberofpatientspotentiallyreachedisestimatedby dividingthetotalnumberofdosespreparedforshipmentbytherecommendedaveragetreatmentdoseper patientperyear.

Therecommendeddosagefortheseproductsmaynotaccuratelyreflecttherecommendedorprescribed dose.Actualdosesandtreatmentdurationsforpatientsaredeterminedbasedonindividualcharacteristics (e.g.,typeandseverityofthedisease,ageandweight).

PatientsReached

PatientsReachedreferstothenumberofpatientspotentiallyexposedtoaspecificLundbeckdrugortreatmentoveraone-yearperiod.

TheestimatedpatientyearsreachedwithLundbeck’sportfolioofmedicinalproductsamountedtoanestimatedaverageof7.2millionpatientsworldwide.Thisestimate,derivedfromsalesdataforLundbeck’sproducts(excludingpartnerproducts),highlightsthesignificantreachandimpactofourportfolioinaddressing theneedsofindividualslivingwithbraindiseases.

ThenumberofpatientsreachedwithLundbeckproductsisestimatedattheproductlevelbydividingthetotal salesvolume(inmilligrams)ofeachproductbytherespectiveestimatedaveragedose,treatmentduration, andthenumberofdaysinayear.Totalsalesvolume(inmilligrams)forDecemberisestimatedbasedonDecember2023.TheaveragedoseisbasedontheDefinedDailyDose(DDD)asdefinedbytheWorldHealthOrganization(WHO),whiletheaveragetreatmentdurationisdeterminedaccordingtotheCompanyCoreSafety Information(CCSI).Partnerproductsareexcluded.

TheWHO-defineddailydosagefortheseproductsmaynotaccuratelyreflecttherecommendedorprescribed dailydose.Actualdosesandtreatmentdurationsforpatientsaredeterminedbasedonindividualcharacteristics(e.g.,typeandseverityofthedisease,ageandweight),andduetothisfact,atreatmentdurationaverage hasbeenusedfortheexposureestimation.

Productsafetyandquality

Ourapproach(policies)

Productsafetyandqualityarefundamentalpriorities forLundbeck.Ourcommitmenttoproductsafety andqualityisguidedbytwokeypolicies,whoseobjectivesaretoprotectthepatientstakingourmedicines.

Productquality

ProductqualityismanagedaccordingtoLundbeck’s QualityPolicy,whichisestablishedbyExecutive ManagementandforwhichtheCEOisaccountable. TheQualityPolicyfocusesondeliveringeffective productsatthecorrectlevelofsafetyforpsychiatric andneurologicaldiseases,fosteringaculturethat prioritizesquality,andensuringemployeeaccountability.Toachievethesegoals,thepolicyentailscompliantsystemsdesignedtowithstandregulatoryinspections,theintegrationofqualityfromtheoutset tominimizedefectsandcomplaints,andtheregular evaluationandimprovementofGoodPractice(GxP) systemsandprocesses.ThepolicycoversallpersonnelinvolvedinGxPactivities,particularlyinmanufacturinganddistribution.

Lundbeckadherestoallrelevantnational,EU,and internationallegislationandstandardsregarding productquality.Accordingly,theQualityPolicyisinformedbyregulatorybodiestoensurepatientinterestsareprioritized.Thepolicyissharedinternally withallemployeesthroughawarenesstraining,and employeesinGxPareasmustdocumenttheirunderstandingwiththeirsignature.TheQualityPolicyand itssupportingguidelinesensurethatproductsare manufacturedanddistributedincompliancewith GxP,aligningwithhealthauthorities’regulationsand enablingtherighttohealthandsafetyforconsumersandend-users.ToadheretotheUNGuiding PrinciplesonBusinessandHumanRights, Lundbeck’sCorporateProductQualitydepartment ensuresthatmarket-readyproductsareoftheright qualityandavailableinsufficientquantitiestomeet patientneeds.

Productsafety

Lundbeck’sapproachtoproductsafetyisguidedby itsrobustpharmacovigilancesystem,operationally overseenbyLundbeck’sdedicatedGlobalPatient Safetydepartment,asdescribedinthePharmacovigilanceSystemMasterFile(PSMF).ThePSMFoutlines Lundbeck’sproceduresforhandlingsafety

information,describestheglobalpharmacovigilance system,andprovidesthebasisforLundbeck’sformalizedprocessescoveringthekeyaspectsofpharmacovigilance.Theseincludemonitoringofthebenefit-riskprofileoftheproductsandriskmanagement systems,evaluatingallsafetyreportsfrompatients andhealthcareprofessionals(HCPs),andthatabusinesscontinuityplanisinplacetoensuretheongoingoperationofpharmacovigilanceprocessesinthe caseofasignificantdisruptiontoLundbeck’spharmacovigilancesystem.Theproceduresspecifiedin thePSMFensurethatallinformationreceivedfrom patientsorHCPsiscapturedandevaluatedaspartof theongoingbenefit-riskevaluationofLundbeck’s products.ThePSMFandallspecifiedprocedures complywithregulatoryrequirementssetbytheEU andhealthauthoritiesworldwide,includingGuidelinesonGoodPharmacovigilancePracticesmodules intheEU,ensuringcompliantpharmacovigilanceactivitiesforallLundbeckproductsworldwide. Lundbeck’sExecutiveManagementisoverallresponsibleforhavingacompliantpharmacovigilancesysteminplace.ThePSMFisaninternaldocumentaccessiblethroughLundbeck’selectronicdocument managementsystem.

Actions

OneofthekeyactionsundertakenbyLundbeckto ensureproductsafetyandqualityistheannualQualityManagementReview(QMR)oftheQualityManagementSystem(QMS).TheQMS,whichisaudited onapredefinedperiodicbasisbyCorporateProduct Quality(CPQ),coverstheproductionsitesinValby (Denmark),Valbonne(France),Lumsås(Denmark), andPadova(Italy)andcoverstheQMSforthemanufacturingofmedicinalproductsforcommercialmarkets.TheelementsoftheQMSrelatedtopatient safetyareauditedbyR&DQuality.TheQMRreviews thesuitabilityandeffectivenessoftheQMSandinvestigatestenkeycomplianceparameters,suchas ‘Significantfindings,andtheassociatedcorrective actions,frominternalaudits’.TheresultsofthisreviewarepresentedtoExecutiveManagement.

Appropriateactionistakenbasedonreceivedcomplaintsorissuesidentifiedthroughthepharmacovigilancesystem–seethe“RemediatingProductSafety andQualityConcerns”onthispagefordetails.Inaddition,acoordinatedprocessisinplaceacrossvariousGxPareastoensurethatcorrectiveandpreventiveactionsaretakentoprevent,mitigate,andavoid recurrenceofnon-conformitiesanddeviations.To trackreportedissuesandensurethatproductsare producedattherightquality,theQMRincludesan assessmentofpreviousreviewsandcorrectiveactionstakenforpreviouslyhighlightedconcerns.

Engagingwithconsumersandend-usersabout productsafetyandqualityimpacts

Engagementwithpatientsregardingproductsafety andqualityishighlyregulated,involvingtheprovisionofsafetyinformationandthehandlingofreportsonadverseevents.Thesereports,submitted bypatients,healthcareprofessionals,orproxies throughthePharmacovigilanceSystem,arecollectedlocallyoratheadquartersbyGlobalPatient Safety(GPS),whoisresponsibleforthefurtherprocessingofdata,medicalevaluation,andreportingto relevanthealthauthoritiesandbusinesspartnersas perrequirements.

Lundbeckalsoengageswithend-usersbyproviding safetyinformationinthepatientinformationleaflets inmedicationpackages,outliningpotentialsideeffectsinthelocallanguage.ThisengagementisfrequentandmanagedbyLundbeck’srobustSafety

Governancestructure,includingtheglobalGPSfunctionsandtheQualifiedPersonforPharmacovigilance(QPPV),whoisappointedbyExecutiveManagementandnotifiedtotheEuropeanHealthAuthorities.InCorporateProductQuality(CPQ),direct engagementregardingcommercialproductswith consumersandend-usersisgenerallyavoidedto preventintroducingbiasesthatmightinfluencethe useofLundbeckproducts.CPQensuresthatany productqualitycomplaintsarefiled,investigated, evaluated,andanswered.Theeffectivenessofthese engagementsisevaluatedaspartofLundbeck’s commitmentwiththehealthauthoritiestoensure riskminimization.

Targets

Lundbeck’sQualityManagementSystemandPharmacovigilanceSystemsarecontinuouslymonitored andevaluated,therebyadheringtostrictregulations upheldbytheQualityPolicyandtheproceduresdescribedinthePharmacovigilanceSystemMasterFile.

Whilenoexternaltargetsareset,continuousmonitoringofproductsafetyprofilesisensuredthrough ongoingsafetysurveillanceandsignalmanagement activities,utilizinginformationfromnon-clinical,clinical,andpost-marketingsources.Throughtheseprocedures,Lundbeckensuresthatallproductsareof therightqualityattherighttime,inaccordancewith thevariouslegislationthatProductQualitymustfollow.

Remediatingproductsafetyandqualityconcerns

Productquality

ThequalityandspecificationsofeachLundbeck productarepredefinedandapprovedbyrelevanthealthauthoritiespriortomanufacturing. Inthecaseofanegativeimpactduetoinsufficientproductquality,Lundbeckengageswith healthauthorities,whichenforcethestrictregulationsgoverningLundbeck’sQualityManagement.Patients,HCPs,andotherstakeholderscan raisequality-relatedissuesthroughdedicated channelsprovidedbyLundbeck.Allcomplaints regardingcommerciallymarketedproductsare handledthroughtheQualityManagementSystem,ensuringthecomplaintsarefiled,investigated,evaluated,andanswered.

Productsafety

TheproceduresoutlinedthroughLundbeck’s PharmacovigilanceSystemareactivatedinthe caseofreportedadverseeventsrelatedtoproductsafety,whichmaybereportedtoLundbeck fromseveralsourcesworldwidesuchasclinical trials,patients,caregivers,andHCPs.Lundbeck continuouslyevaluatessafetyinformationfrom varioussourcestoassessthebenefit-riskprofile forpatients.GlobalPatientSafetyanalyzesaggregateddatatocommunicateproductbenefits andriskstopatients,healthcareproviders,and regulators.

AllpotentialsafetyissuesarereviewedbyinternalSafetyCommittees,whichrecommendrisk mitigationstrategies.Theserecommendations arethenendorsedbytheSafetyBoard.Inthe eventofsignificantsafetyissuesimpactingpatientstheSafetyBoardismandatedtodecideon productrecallduetonegativebenefit-risk,implementsafetyupdatesinproductlabelstoensure themostcurrentinformationisavailable,and/or pauseglobaldevelopmentactivitiesforsafety reasons.Communicationtostakeholders,such aspatientsorHCPs,aboutthepotentialrisksof Lundbeckproductsishighlyregulatedbyhealth authorities.Themethodofcommunicationto stakeholdersdependsonthepotentialimpact; forinstance,itmaybethroughupdatedlabelinformation,directcommunicationtoHCPs,orvia communicationbyhealthauthorities,webchannels,andmore.Theavailabilityofthiscommunicationwillthereforebeasdiverseasthemethod, andLundbecksupportstheavailabilityofthis communicationbyfollowingtherelevantlegislation.

Whiletherearenospecificanti-retaliationpoliciesinplaceregardingpatientsorotherstakeholdersraisingproductsafetyandqualityconcerns,Lundbeck’sAnti-RetaliationPolicyinrelationtowhistleblowerscomesintoeffectifareportissubmittedthroughtheComplianceHotline.Seepage133formoredetails.

Responsiblemarketing

Ourapproach(policies)

OneofLundbeck’sprimaryresponsibilitiesistoensureappropriateandethicalpromotionalactivities, asoutlinedintheCodeofConduct(link).Byadhering totheCodeofConduct,Lundbeckemployeescomplywithapplicablelawsandregulations,useaccurateandapprovedpromotionalmaterials,donot promoteoff-labeluses,andproperlycontrolmedicinalproductsamples.TheCodeofConductapplies globallyandiscrucialforallemployeesinvolvedin creatingorhandlingmaterialsintendedforexternal use.ThehighestlevelofaccountabilityforimplementingtheCodeofConductlieswiththeCEO,with theauthoritytodelegateresponsibilitiestotheGeneralCounsel.

Lundbeckiscommittedtorespectingallapplicable lawsregardingethicalmarketing,andfurtherupholdingtherelatedstandardsoutlinedintheEuropeanFederationofPharmaceuticalIndustriesand Associations(EFPIA)andInternationalFederationof PharmaceuticalManufacturersandAssociations (IFPMA)codes.ByfollowingtheCodeofConduct, Lundbeckprioritizespatientinterests,directingall marketingtohealthcareprofessionals(HCPs),except

intheUSandNewZealandwheredirect-to-patient marketingispermitted.Additionally,Lundbeck’s marketingdevelopmentandcommunicationprocessesaredesignedtoworktogethertoupholdethicalstandards.TheCodeofConductisaccessibleinternallyontheintranetandexternallyon www.lundbeck.com.Anannualtrainingismandated foremployees,andcertainsuppliersandpartners mustaffirmtheiradherencetotheprinciplessetout intheCodeofConduct.Forfurtherdetailsonthe CodeofConduct,seepage131.

Actions

Lundbeck’sPromotionalandAdvertisingReview Committee(HQ-PARC)continuouslyreviewsandapprovespromotionalactivitiesandmaterialsproducedatLundbeck’sheadquarterstoensurecompliancewithapplicablelawsandtheEFPIAandIFPMA codes.Lundbeck’ssubsidiariesareresponsiblefor ensuringthatpromotionalactivities,includingmaterials,arereviewedandapprovedinaccordancewith applicablelocalcodesandrulesbeforethematerials areusedwithinthespecificlocalmarket.Identifying theappropriatemeasurestotaketoensuretheintegrityofLundbeck’smarketingmaterialsis

embeddedinallthatthesefunctionsdoandissupportedbyahierarchyofdecisionstoassessanypotentialrisksposedbyagivenpieceofpromotional material.AsthereviewprocessesconductedbyHQPARCandtheequivalentbodiesinlocalsubsidiaries areembeddedintotheirdailywork,Lundbeckdoes notcurrentlyundertakeadditionalspecificinitiatives regardingresponsibleandethicalmarketing.Inadditiontothedailyoperations,Lundbeckengagesina compliancenetworkwithothercompaniestoalign interpretationsandapproachesregardingmarketing practices. Potential marketing-related impacts can be reported via Lundbeck’s Compliance Hotline (see page 133). Lundbeckputsconsiderableresourcestowardsresponsibleandethicalmarketing, asHQ-PARC,localPARCresponsible,andthemarketingandmedicaldepartments,bothatheadquarters andlocallyatsubsidiaries,allplayaroleinmanaging theethicsofLundbeck’spromotionalandadvertising materials.

Engagingwithconsumersandend-users

Aspatientsmaybydefaultbeparticularlyvulnerable topotentialnegativeimpactsstemmingfromalack ofresponsibleandethicalmarketing,Lundbeckalso prioritizesgaininginsightfrompatientsandHCPson theirperceptionofpromotionalmaterialsinorderto avoidnegativeimpacts.Toassesswhetherpromotionalcommunicationsareaccuratelyunderstood andwell-received,Lundbeckconductsanonymous surveysbothdirectlywithpatientsandHCPs,and throughcredibleproxiessuchaspatientorganizationsandrelatedagencies.Allengagementsare strictlyregulatedbytheEFPIACodeofPractice. Lundbeck’sMarketingAnalyticsdepartmentusesthe receivedfeedbacktooptimizepromotionalmessaging,ensuretheclarityoffuturematerialsandhighlightinganyunmetneeds.Inthecasethatchanges arewarranted,thelocalsubsidiariesreviewtheir communicationstrategiestoincorporatenewlearnings.Theresponsibilityforensuringengagement andincorporatingfeedbackintoLundbeck’sapproachlieswiththeSeniorVicePresidentforMedical AffairsandtheGeneralCounsel,whobothsignoff ontheprocess.

Remediationandchannelsforraisingconcerns

Regardingmarketingpractices,Lundbeckadheresto thestandardsandexpectationssetbytherelevant regulatorybodies,withremediesforidentifiedmaterialnegativeimpactsincludingpayingfines,withdrawingmaterials,andmakingpubliccorrections. Lundbeckalsoengagesinself-regulationandmutual surveillanceacrossthepharmaceuticalindustryto ensurecompliance.

Issuesrelatedtopromotionalbehaviorcanberaised viatheComplianceHotlineortorelevantauthorities andexternalethicalbodies,asthereisnospecific channeldedicatedtoraisingconcernsover Lundbeck'smarketing.TheComplianceHotlineis bothinternallyandexternallyavailableon www.lundbeck.com.Pleaseseepage133formore informationontheComplianceHotlineandtheAntiRetaliationandWhistleblowingPolicy.

Asamemberofseveralethicalcommitteesforthe pharmaceuticalindustry,suchastheDanishEthical CommitteeforthePharmaceuticalIndustry, Lundbeckhandlescomplaintsthroughtheserelevantchannels.Additionally,Lundbeckhasanestablished,broad-reachingmedicalinformationservice wherepatientsandHCPscanraiseconcernsandreceiveapromptreply.Issuesraisedthroughthemedicalinformationservicearecontinuouslytrackedand monitoredthroughyearlyreports,andLundbeck furtherreceivesanannualreportfromtheethical

bodycoveringallpharmaceuticalcompaniesinDenmarkregardingreportedconcerns.

Targets

Lundbecktrackstheeffectivenessofitsworktowardsresponsibleandethicalmarketingbymonitoringformalcomplaintsaswellassocialmediaforany integrityissues.Eachtypeofpotentialissueidentifiedviasocialmediaismanagedthroughaspecific processinplacewithinLundbeck’sCorporateCommunicationdepartment.Thelevelofambitionregardingprogresstowardsresponsibleandethical marketingissetbytheCEOandtheBoardofDirectors,withnospecifictargetsorindicatorsbeingcurrentlyusedtoevaluateprogress.

Healthasahumanright

Asafocusedinnovatorcommittedtoadvancing brainhealth,itiscrucialforLundbecktocontinueenhancingitsunderstandingoftheimpact ithasonpatients,fromtheirownperspective,by continuouslyassessingrisksrelatedtohuman rightsviolations.Lundbeckiscommittedtosafeguardingthehealthofpatients,employeesand valuechainworkersbycontinuouslyupholding thecommitmentsitmakesintheHumanRights Statement(link)(seepages116-117).

Lundbeck’spolicies,actions,andtargetsoutlined intheConsumersandEnd-userssectionon pages119-128reflectLundbeck’scommitmentto thesehumanrightsprinciplesandoperationalize oureffortstoavoidcausingorcontributingto anysignificantnegativeimpactsonconsumers andend-users.

InadditiontoLundbeck’scommitmenttoadheringtorelevantlegislationandengagingwith healthauthoritiestoaddressanypotentialnegativeimpacts,Lundbeckengageswithpatients andotherend-usersindifferentwaysdepending onhowtheymaybepotentiallyimpacted.Similarly,duetothediversetypesofimpactthatmay occur,thereisnoone-size-fits-allapproachtoremediationofsuchpotentialimpacts.Rather,variouschannelsareavailabletoaddressanyraised issues.

Governance

Jenna livingwithMigraine

Businessconduct

AtLundbeck,wepursueourbusinesspurposeguidedbytheethicalprinciplesinourCodeofConduct,asafundamentalelementofourSustainability Strategy.

Seefurtherdetailsonpage67.

Lundbeck’scorporateculture governance

CodeofConduct

Lundbeckpursuesitsbusinesspurposeguidedby theethicalprinciplessetoutinitsCodeofConduct. TheCodeofConduct(link)providestheframework, commitment,andexpectationsforhowLundbeck conductsbusinessinafair,transparent,andethical manner,withparticularattentiontoareasthatare criticaltoLundbeckandthepharmaceuticalindustry, suchasanti-corruption,fairandopencompetition, andanimalresearch.Allemployeesareobligedto abidebytheCodeofConduct.Thirdpartiesworking onbehalfofLundbeck,orinourinterest,arealso obligedtocomplywiththeCodeofConductand meetthehighstandardsofperformanceandintegritywesetforourselvesinternally.

Whenitcomestoestablishingacorporateculture structuredaroundethicalbusinessconduct, Lundbeck’sCEOandExecutiveManagementsetthe tonefromthetop.AschairoftheGlobalCompliance Committee,theCEOsignstheCodeofConduct, whichisapprovedbytheBoardofDirectors.The BoardofDirectorsandtheExecutiveManagement areheldaccountableforitsimplementationandeffectiveness.Eachmemberoftheadministrative,

management,andsupervisorybodiesiscarefully chosentobeapartofLundbeckbasedontheirqualificationsandexpertise,includingtheirexperiencein businessconductmatters.

Lundbeck’sGlobalComplianceCommittee,which representstheExecutiveManagement,meetsregularlytomaintainoversightoftheCodeofConduct andtheComplianceProgram.Attheoperational level,theCodeofConductismanagedbyLundbeck’s GlobalCompliancedepartment.

TheCodeofConductiscommunicatedinastructuredprocessandisavailableonwww.lundbeck.com andourintranet.Further,internalproceduresand guidelinesareavailableonLundbeck’sinternaltransparencysiteanddocumentsystem.

Compliancegovernanceandoversight

Lundbeck’sGlobalComplianceCommitteeoversees theimplementationoftheComplianceProgram.In 2024,LundbeckalsoestablishedtheCompliance Council,consistingofmembersofExecutiveand SeniorManagement,withthepurposeofsharinginformationaboutkeydevelopments,providinginput totheGlobalComplianceCommittee,andactingas

ambassadorsfortheComplianceProgramwithinthe respectiveorganizations.

OurinternalnetworkofRegionalComplianceOfficers(RCO),whoprovideadviceandsupporttocommercialregionsandsubsidiariesaroundtheglobe,is continuouslyassessedandstrengthened.InJune 2024,theRCOSummittookplaceinCopenhagen, wherewefocusedonstrengtheningtheglobalcompliancecommunityandharmonizingourefforts.

Lundbeck’sComplianceProgramiscontinuouslyimprovingandevolving.In2024,weupdatedourThirdPartyIntermediaryDueDiligenceprocess,Anti-RetaliationandWhistleblowingPolicy,globalinternalinvestigationprocedure,introducednewdigitalsolutionsforcomplianceperformancemanagement,reporting,andthird-partyscreenings,andlauncheda speak-upcampaign.

Ourongoingimprovementeffortsaresupplemented byourinternalbusinessethicsauditsandmonitoringactivities.In2024,ourbusinessethicsauditsincludedLundbeck’ssubsidiariesandglobalfunctions andprocesses.Inaddition,wepilotedanewmethodologyrelatedtodeliverablesandtimelines,which

supportedexpeditingreportingandremediationof actions.Businessethicsauditsensuretheconsistent implementationoftherespectivepoliciesandrequirements,identifyrisks,andcapturesuggestions forenhancingprocessesandcontrols.

Ethicsandcompliancetraining

Lundbeckcontinuouslyworkstomaintainawareness andtrainemployeesonethicalbusinessconduct.All employeesacrossallfunctionsatLundbeck,includingtheadministrativeandmanagementbodies,are annuallyrequestedtocompletethecorporateCode ofConducttraining.Thetrainingisane-learning modulethateducatesemployeesontheexpectationsofLundbeck’sCodeofConductandrequires thecompletionofseveralexercisesthatpromote awarenessonhowtoactinsituationsthatposean ethicalorcompliance-relatedconcern.Asthemain supervisorybody,theBoardofDirectorsreceives trainingduringitspersonalonboardingandisofferedarefreshertraining.Relevantexternalconsultantsareassignedthetrainingbytheirlocalsubsidiaryorglobalfunction.

Businessethics

Anti-corruptionandbribery

Ourapproach(policies)

InalignmentwiththeUNConventionagainstCorruption,theForeignCorruptPracticesAct(FCPA),the UKBriberyAct,theOECDGuidelines,andtheSustainableDevelopmentGoals,Lundbeckhasseveral policiesandproceduresinplacetopreventandmanagethematerialimpactsandrisks relatedtocorruptionandbribery.Thekeypolicyis Lundbeck’sCodeofConduct(link),whichunderscorestheexpectationforallemployeesandthird partiestoadheretooursystemsandprocessesfor avoidingcorruption,fraud,andbribery.

Thekeyproceduresupportingtheanti-corruption andbriberyprinciplesupheldbytheCodeofConductisLundbeck’sGuidelineonInteractionswith HealthcareProfessionals(HCPs),HealthcareOrganizations(HCOs),PatientOrganizations,andPatients. Theguidelineanditssupportingproceduresare intendedtoensurethatinteractionsbetween Lundbeckandthesehigh-riskstakeholdersarelegal, ethical,anddonotconstituteaninducementtorecommend,prescribe,purchase,supply,sell,oradministeramedicinalproduct.TheGuidelineisapproved

byLundbeck’sGeneralCounsel,whiletheCEOholds ultimateaccountabilityforitsimplementation.Itis availableinternallytoemployeesonLundbeck’sintranetanddocumentmanagementsystem.

AllpartiesworkingfororonbehalfofLundbeckare subjecttotheanti-corruptionandbriberyprinciples upheldthroughtheCodeofConductandtheGuidelineonInteractions,includingLundbeckfunctions thatfrequentlyinteractwithhigh-riskstakeholders suchasCommercialMarketing,Sales,MedicalAffairs,ClinicalDevelopment,Regulatory,Procurement,R&D,andPublicAffairs.Lundbeckiscommittedtoprotectingtheinterestsofitskeystakeholders bycomplyingwithnationallawsandindustryassociationregulations,aswellasbypromotingawarenessonthestandardofconducttobeupheldinthe contextofhigh-riskinteractions.

Actionsandtargets

Upholdinganti-corruptionandanti-briberyprinciples isacorecomponentofLundbeck’sComplianceProgram.Nospecificactionsregardingthistopicwere necessaryin2024,duetothecontinuousimprovementsmadeaspartoftheComplianceProgram.See

relevantactivitiesintheComplianceGovernanceand Oversightsectiononpage131.

CodeofConducte-learningcompletionrate

Therearetwotargetsinrelationtoanti-corruption andanti-bribery.Thefirstisa98%completionrateof theannualCodeofConducte-learningbyemployees assignedtoitbetween30Septemberand1October. Contingentworkersaremadeawarethattheymust followtheCodeofConductintheircontract,either withtheindividualconsultant,orintheagreement withtheircompany.Thecompletionrateismeasuredinthetimeframeof30Septemberto31December.Throughoutthisperiod,thecompletionrateis monitoredastheGlobalComplianceteamrunsa completionratereportdailyviaLundbeck’sLearning

ManagementSystem(LMS).Remindersaresentto management,ExecutiveManagementandRegional ComplianceOfficers(RCOs)toensurecompletion withintheirrespectiveareas.Thee-learningreviews thecoretopicscoveredintheCodeofConduct,with scenariosandteststhatsupportemployeesinenactingexpectedbehaviorsintheireverydaywork. Lundbeck’sComplianceCommitteeapprovesthetargetannually.

In2024,Lundbeckmetitstarget,achievinga100% completionrate.

AnnualCodeofConducttrainingcompleted byatleast98%ofemployeesatworkglobally

Fouroutoffiveemployeesstatingintheannualemployeesatisfactionsurvey(ESS)that theyareconfidentinraisinganethicalor complianceconcern.

AnnualCodeofConducttrainingcompleted byatleast98%ofemployeesatworkglobally

FouroutoffiveemployeesstatingintheannualESSthattheyareconfidentinraising anethicalorcomplianceconcern

Confidenceinraisinganethicalorcompliance concern

Thesecondtargetistoachievefouroutoffiveemployeesstatingintheannualemployeesatisfaction survey(ESS)thattheyareconfidentinraisinganethicalorcomplianceconcern.

Thetargetreflectsthatemployeestrustthatethical issuesareaddressedfairlyandthatcomplianceconcernsaretakenseriouslyacrossthecompany.The ESSissharedannuallywithallemployeesglobally, exceptforcontingentworkers,employeeswho joinedthecompanyshortlybeforesurveylaunch, andemployeeswiththeirlastworkingdayat Lundbeckshortlybeforelaunch.

ThetargetisapprovedbytheGlobalCompliance Committeeandmonitoredthroughtheresultsofthe ESS.TheESSisanonymousandprovidedbyanexternalcompany,withLundbeckdesigningthequestions.

In2024,Lundbeckachieveditstarget,withsurvey resultsconfirmingthat4.6outof5employeesfeel comfortableraisinganethicalorcomplianceconcern.

Protectionofwhistleblowers

Ourapproach(policies)

Lundbeck’sAnti-RetaliationandWhistleblowingPolicyestablishesprotectionsforindividualswhoreport allegedoractualviolationsofLundbeck’sCodeof Conduct,internalpoliciesandprocedures,orapplicablelawsandregulations.Thispolicyprovidesassurancethatgood-faithwhistleblowerswillbeprotectedtotherequiredextentunderapplicablelaw andinaccordancewithArticle6(ConditionsforProtectionofReportingPerson)andArticle19(Prohibition ofRetaliation)oftheEUWhistleblowingDirective(EU Directive2019/1937)and/orrelevantlocalwhistleblowerlaws.TheAnti-RetaliationandWhistleblowing PolicyappliesgloballytoallemployeesandtomembersoftheBoardofDirectors,agents,consultants, contractworkers,andothersrepresentingoracting fororonbehalfofLundbeck.

Lundbeck’sExecutiveManagementisresponsiblefor ensuringtheproperrolloutandimplementationof Lundbeck’sethicalstandards.Thisisdoneviathe ComplianceProgram,forwhichtheaccountable partyistheSVP,andtheGeneralCounselwithin GlobalLegal,Compliance,andSustainability.The ComplianceProgramincludes,butisnotlimitedto, auditingandmonitoringconfidentialreportingand investigations,aswellaspoliciesandprocedures, whichincludetheAnti-RetaliationandWhistleblowingPolicy.

ThepolicyismadeavailableinternallyonLundbeck’s intranetaswellasitsinternaldocumentsystem.

Preventionanddetectionofethicalconcerns

Lundbeckencouragesemployeestohaveanongoingdialogueaboutcomplianceandethicswiththeir colleaguesandmanagers.However,Lundbeckrecognizesthatsomequestions,dilemmas,orconcerns maynotalwayslendthemselvestoopendiscussions.Insuchcases,employeesareencouragedto contacttherelevantcorporatefunction(e.g.,People andCulture,Legal,Compliance)toseekadvice.Seriouscomplianceconcernscanalwaysbereportedby internalorexternalpartiesinfullconfidentialityto Lundbeck’sComplianceHotline.Whistleblowersare protectedaccordingtoLundbeck’sAnti-Retaliation andWhistleblowingPolicy,asdescribedintheProtectionofWhistleblowerssection.

LundbeckhasadedicatedComplianceHotlineand GlobalComplianceInvestigationteamtoinvestigate businessconductincidentspromptlyandobjectively, guidedbytheglobalinvestigations’procedures.An establishedprocessandescalationrouteensurethat investigationsarehandledindependentlyandfreeof anyconflictofinterest.

Allnewemployeesareassignedacourseonthe ComplianceHotline,andLundbeckperiodicallyprovidesfurthertrainingandpromotionoftheHotline andonthereportingofethicalandcomplianceconcernstoemployees.In2024,aspeak-upcampaign

wasalsolaunchedtocreateadditionalawareness abouttheComplianceHotline.Newreportstothe Hotlineareinvestigatedbytwodesignatedcomplianceinvestigators.Theywerehiredasskilledinvestigators,andcontinuouslyundertakerelevanttraining andeducation,e.g.,oninvestigationsandfraud.

GlobalComplianceperiodicallyreportsananonymizedsummaryofgloballyreportedclaimsofmisconducttotheAuditCommitteeandtheGlobalComplianceCommittee.ThetotalnumberofcasesreportedtotheHotlineisincludedinLundbeck’sAnnualReport.

Investigationconclusionsandrecommendations maybesharedwiththeAuditCommittee,Global ComplianceCommittee,and/orExecutiveManagementforendorsementorfurtheraction.While GlobalComplianceisresponsiblefortheinvestigationofpotentialmisconduct,managementisresponsibleforsecuringremedialordisciplinaryactions.

Actionsandtargets

Theambitionofthewhistleblowingprogramisto complywiththeEUwhistleblowerregulationson communicationwithreporters,includingtoreplyto allgoodfaithreporterswithinsevendays,andto handleallcasesinanappropriate,objective,fair, andtimelymanner.Nosignificantactionswere neededin2024,asourComplianceProgramconductseffectivemonitoringaspartofregular

operations.Similarly,therearenotargetsregarding protectionofwhistleblowers,aseffectivenessis trackedthroughtheaccountingofallreportstothe ComplianceHotline,whichisconductedaspartof theregularprocesswithintheGlobalCompliance team.

Fairandopencompetition

Ourapproach(policies)

Lundbeckiscommittedtotheprincipleoffair,free, andefficientcompetition,asupheldbytheCodeof Conduct(link).ThroughdedicatedpoliciesandproceduresLundbeckensurescompliancewithEUandnationalcompetitionlaws,workstoconductourbusinessinafair,transparent,andethicalmanner,and strivestopreventanyactionsthatmayrestrictcompetitioninagivenmarket.Lundbeckappliesthese principlesthroughoutitsbusinessandaimstopromoteanunderstandingofandcompliancewithcompetitionlawthroughoutitsvaluechain.

IntheCodeofConduct,Lundbecklaysoutseveral expectationsandstandardsofconductforemployeestopreventbreachesofcompetitionlawandensurethattheprincipleoffairandopencompetition isfollowed.Formoreinformation,seepage131.

Actionsandtargets

Nokeyactionsortargetsregardingfairandopen competitionweresetin2024,butthetopichasbeen managedinanumberofways.Adedicatedlegal

teamhasconductedacompetitionlawriskanalysis whichhasinvolveddraftingandpublishingaCompetitionLawPolicyaswellasbespokeguidelineson identifiedmaterialissues.Thispolicyandassociated guidelineswillenhanceLundbeck’songoingcommitmenttofair,free,andefficientcompetition.Moreover,keyemployeeswithinLegalandCompliance havereceivedextensivecompetitionlawtraining andindividualtrainingofadditionalemployeesoutsidetheLegalandComplianceorganizationisscheduled.Thenumberofemployeesreceivingthetrainingistracked.

Responsiblesourcing

Ourapproach(policies)

Lundbeckhaspoliciesandprocessesinplacewith theaimofmitigatingnegativeimpactsandrisksrelatedtooursupplychain.Arisk-basedapproachregardingnewsuppliersisinplace,focusedonmanagingsignificantriskstothecompanyandprioritized riskstosociety.

Priortocommitment,allnewsupplierswithanexpectedcommitmentofoverDKK1millionareassessedagainsteightcoreriskstoLundbeck,includingthepotentialcriticalimpactonLundbeck’score businessoperations,ITsecurity,andITrights.Suppliersthatfallwithinthedefinitionofthird-partyintermediariesundergoastrictersupplierduediligenceprocess,governedbytheThird-PartyIntermediaryDueDiligence(TPIDD)StandardOperating

Procedure(SOP).Third-partyintermediariesaredefinedasprofessionalsandentitiesperformingactivitieswithinLundbeck’scorebusinessareasonbehalf of,orintheinterestof,Lundbeck.

TheTPIDDprocessisdesignedtoreviewandmonitorrisksprimarilyrelatedtobriberyandcorruption, fraud,andconflictsofinterest,whilealsocovering otherrisksrelatedtotradesanctions,humanandlaborrights,andenvironmentalimpacts.

TheTPIDDisapplicablegloballytoanylegalentity withinLundbeckthatintendstoeitherusetheservicesof,orinteractwith,third-partyintermediaries. TheChiefEthicsandComplianceOfficerisaccountablefortheimplementationoftheTPIDD,whichis availableinternallyonLundbeck’sintranetandisimplementedtoensurecompliancewiththeCodeof Conductandlocalapplicablelaws,codes,andregulations.

Climatecriteriaareconsideredwhenselectingsuppliersthatfallwithintheboundaryofourscope3 SBTiTargetandourTransitionPlan.Newandstrategicsuppliersarerequestedtosignaclimateaddendum,whichcommitsthemtotheuseofrenewable energyortohavescience-basedtargets,aswellas toestablishatimelineforreportingonthese.

Actionsandtargets

Responsiblesourcingismanagedthroughregular operationsinProcurement,GlobalCompliance,and HSEprocesses.Assuch,nokeyactionshavebeen plannedin2024andnotargetshavebeenset.The processesgoverningresponsiblesourcingare trackedbytheirrespectivedepartments.Effectivenessismeasuredasthenumberofclimateaddendumssignedandthird-partyintermediaryduediligencescreeningsundertaken.

Animalwelfare

Ourapproach(policies)

Lundbeckisobligedbyregulatoryauthoritiestoconducttestingonanimalstoensuretheefficacyand safetyofitsproducts.Animalsareonlyusedforresearchpurposeswhenalternativemodelscannot providethedatanecessarytoevaluatetreatments forbraindiseasesandwhenthebenefittopatients outweighthediscomfortfortheanimals.Theuseof animalscomeswitharesponsibilitytoprovideappropriatecareandhousing,complywithrelevant legislation,andcommittothe3Rs(Refine,Reduce, Replace)principleofanimalresearch.

Lundbeckiscommittedtoensuringtheethicaltreatmentofanimalsusedinlaboratorysettings,incompliancewiththeguidelinesoftheEUDirective 2010/63/EUontheprotectionofanimalsusedfor scientificpurposesandsimilardirectivesworldwide, aswellasnationalregulationsandguidelines.Furthermore,LundbeckhassignedtheMarseilleDeclaration,whichstatestheexpectationsrelatedtoanimalwelfarepracticesusedatLundbeck’sownsites worldwideandbyallexternalpartnerswhenusing liveanimalstoconductstudiesonLundbeck’sbehalf

Facilitiesworkingwithliveanimalsaremandatedby EUregulationtohaveanAnimalWelfareBody(AWB) tooverseetheresearch.AtLundbeck,theAWBisthe LundbeckAnimalCareandUseCommittee(LACUC), chairedbyLundbeck’sSVPofNon-clinicalSafetyResearch.LACUCensuresthatanimalwelfareconsiderationsaregiventhehighestpriorityinthecontextof animalkeeping,breeding,anduse.Animalwelfare considerationsarealsosupportedbytheinspection oftheDanishsitesbytheDanishAnimalExperimentsInspectorate(DAEI),aswellasrulesrequiring thatanyexternalinstitutionusinganimalsonbehalf ofLundbeckmusthaveanAWBtoensurecompliancewithlegislationandalignmentwithLundbeck’s AnimalEthicsPolicyandsupportingobligations.

TheAnimalEthicsPolicy(link)ispubliclyavailableon www.lundbeck.com,andtheimplementedproceduresandpracticalguidanceforemployeesworking withanimalsareavailableinternallyonLundbeck’s intranet.

Actionsandtargets

Wecloselymonitorandaddressanyneedsforimprovementregardinganimalwelfarewithinourfacilitiesasaregularcomponentofouroperations.As such,nospecifictargetshavebeenset.However, LundbeckhasadedicatedveterinaryteamthatisapprovedbytheExecutiveManagementtooperateindependentlyfromLundbeck’sscientificresearchand animalcare.Theteamprovidesoversightofanimal welfare,servesasanadvisoryfunction,andensures compliancewithrelevantregulations.

In2024,constructionbeganonanewresearchfacilityinValby(Denmark)tosupportinternalresearch projects,withcompletionexpectedin2027.This state-of-the-artfacilitywilleventuallyhousetheanimalsusedinLundbeck’sscientificresearch,withanimalwelfareasakeyelementofitsdesign.Thefacilitywillbeequippedwithadvancedtechnologyand scientificsetupsthatwillhelpminimizestress,protectagainstdisease,andprovidespecies-specific care.Additionally,itwillincludeprovisionsfortrainingandsocializationtoensurethephysicalandpsychologicalwellbeingoftheanimals.

Thenewresearchfacilitywillrequireaninvestment ofapproximatelyDKK1billionoverfouryears,with projectcompletionexpectedin2027.

Considerationsregardinganimalwelfarearecontinuouslydeveloping,asimprovementscanalwaysbe madeinresponsetonewadvancements,technology,andstandardsofcare.Forthepast15years, Lundbeckhasbeencommittedtohighanimalwelfarestandards,andwestrivetoensurethatallour collaboratorsadheretotheirprinciples.

G1-4–IncidentsofCorruptionorBribery

In2024,atotalof85caseswerereportedtotheComplianceHotline.Thenumberofcasesincludesallreportedconcerns,regardlessofwhetherinvestigationsweresubstantiated.Allcasesarethoroughlyinvestigatedinaccordancewithourglobalprocedures,whicharedesignedtoprotectindividualswhoraiseconcerns orcontributetoinvestigations.Furthermore,noconvictionsforviolationsofanti-corruptionoranti-bribery lawswerereportedin2024

In2024,Lundbeckachieveda100%completionratefortheCodeofConducte-learningprogram,animprovementfromthe99.9%completionratein2023,demonstratingourperformancetowardsensuringahighlevel ofunderstandingoftheCodeofConduct.

Thenumberofauditsincludesbothinternalandexternalauditsconductedacrossvariousdepartments,underscoringLundbeck’scommitmenttocompliancewithcompanyguidelines,pharmaceuticalcodes,andlegal regulations.In2024,thetotalnumberofauditsacrossallcategoriesslightlydecreased.

ThenumberofcompletedDueDiligencescreeningsin2024reflectsthecontinuedawarenessofanti-bribery andanti-corruptionrequirementsandtheintroductionoftheupdatedtheThird-PartyIntermediaryDueDiligenceprocedure.

Incidentsofcorruptionandbribery

Thenumberofconfirmedconvictionsforcorruptionandbriberyduringthereportingyear.Theassociated monetaryfinesarereportedinDKKm.

ComplianceHotline

ThenumberofcasesreportedthroughtheComplianceHotlineandotherchannelsincludesallcasesreported whereconcernsaboutpotentialmisconductwereinvestigated,regardlessofwhetherinvestigations couldbe substantiated.

Internalandexternalaudits

Thenumberofauditscomprisesthosecompletedinternallyandbyexternalpartners,whicharedividedinto thefollowingcategories:Patient&ProductSafetyaudits,Health,SafetyandEnvironmentaudits,Business EthicsandInternalControlaudits,andThirdPartiesandSupplieraudits.

Patient&ProductSafetyaudits

ThenumberofauditscomprisesthosecompletedandreportedbyinternalfunctionsatLundbeckwithinthe followingareas:AnimalWelfare,Chemistry,ManufacturingandControlsAssurance(CMCQA)Quality,Good DistributionPractice(GDP),GoodManufacturingPractice(GMP),CorporateProductQuality(CPQ),Research andDevelopmentQuality(R&DQuality),GVPandGoodClinicalPractice(GCP),MedicalRegulatoryClinical QualityAssurance(MRCQA),PharmacovigilanceAudits,andGoodLaboratoryPractice(GLP).

Health,SafetyandEnvironmentaudits

ThenumberofauditscomprisesthosecompletedandreportedbyinternalfunctionsatLundbeck.ThisprocessverifiesthatLundbeck’sinternaloperations,aswellasthoseofitssuppliersandthirdparties,meetthe requiredstandardsforhealthandsafetyperformance,humanandlaborrights,andenvironmentalperformance.

BusinessEthicsandInternalControlaudits

ThenumberofauditscomprisesthosecompletedandreportedbyinternalfunctionsatLundbeckforcomplianceandfinancialauditfunctions.Thesefunctionsreview,audit,andmonitortheactivitiesofemployees,as wellasinternalcontrolprocesses.

ThirdPartiesandSupplieraudits

ThenumberofauditscomprisesthosecompletedandreportedbyinternalfunctionsatLundbeck.Third-partiesandsuppliersaremonitoredandaudited(basedoncontractualrequirementsandrequirementsstipulatedinLundbeck’sthird-partyobligations),includinginformationsecurityreviewsofexternalpersonaldata processors.

CodeofConduct

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139 ListofdatapointsthatderivefromotherEUlegislation

1.ListofdatapointsthatderivefromotherEUlegislation1*

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ESRSE1-1 14:Transitionplantoreachclimateneutrality by2050

ESRSE1-1

16(g):UndertakingsexcludedfromParisalignedBenchmarks

Article449a; Regulation(EU)No575/2013;CommissionImplementingRegulation(EU)2022/2453(28)Table1:QualitativeinformationonEnvironmentalriskandTable2:QualitativeinformationonSocialrisk

Article449a;

Regulation(EU)No575/2013;CommissionImplementing Regulation(EU)2022/2453Template1:Bankingbook-ClimateChangetransitionrisk:Creditqualityofexposuresby sector,emissionsandresidualmaturity

DelegatedRegulation(EU)2020/1818(29) Article12(1)DelegatedRegulation(EU)2020/1816,AnnexII

DelegatedRegulation(EU)2020/1818,Article12(1)Delegated Regulation(EU)2020/1816,AnnexII

ESRSE1-6

ESRSE1-9

ESRSE1-9

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GHGremovalsandcarboncredits

66:Exposureofthebenchmarkportfoliotoclimate-relatedphysicalrisks

66(a):Disaggregationofmonetaryamountsby acuteandchronicphysicalrisk

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ESRSE1-9

67(c):Breakdownofthecarryingvalueofits realestateassetsbyenergy-efficiencyclasses

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andincidentsconnectedtoitsupstreamanddownstreamvalue chain Indicatornumber14Table#3ofAnnex1

ESRSS3-1 16:HumanRightsPolicycommitments Indicatornumber9Table#3ofAnnex 1andIndicatornumber11Table#1 ofAnnex1

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3.EUTaxonomy-nuclearandfossilgasrelatedactivities1

1 Theundertakingcarriesout,fundsorhasexposurestoresearch,development,demonstrationanddeploymentofinnovativeelectricitygenerationfacilitiesthatproduceenergyfromnuclearprocesseswithminimal wastefromthefuelcycle. No

2 Theundertakingcarriesout,fundsorhasexposurestoconstructionandsafeoperationofnewnuclearinstallationstoproduceelectricityorprocessheat,includingforthepurposesofdistrictheatingorindustrial processessuchashydrogenproduction,aswellastheirsafetyupgrades,usingbestavailabletechnologies.

3 Theundertakingcarriesout,fundsorhasexposurestosafeoperationofexistingnuclearinstallationsthatproduceelectricityorprocessheat,includingforthepurposesofdistrictheatingorindustrialprocessessuch ashydrogenproductionfromnuclearenergy,aswellastheirsafetyupgrades. No Fossilgasrelatedactivities No

4 Theundertakingcarriesout,fundsorhasexposurestoconstructionoroperationofelectricitygenerationfacilitiesthatproduceelectricityusingfossilgaseousfuels. No

5 Theundertakingcarriesout,fundsorhasexposurestoconstruction,refurbishment,andoperationofcombinedheat/coolandpowergenerationfacilitiesusingfossilgaseousfuels.

6 Theundertakingcarriesout,fundsorhasexposurestoconstruction,refurbishmentandoperationofheatgenerationfacilitiesthatproduceheat/coolusingfossilgaseousfuels. No

Pioneers of allergy solutions

ALK-Abelló

Management's review Financial statements Reports and other disclosures

How to read this report

157 Statement by Management on the annual report

159 Independent Auditor’s Reports

162 Independent auditor’s limited assurance report on the Sustainability Statement

164 Financial highlights and key ratios by quarter for the ALK Group (unaudited)

This is ALK Abelló A/S’ (“ALK” or “the company”) first integrated annual report, consisting of the two main sections Management’s review including Sustainability statement and Financial statements. With the aim of addressing the requirements in the new Corporate Sustainability Reporting Directive (CSRD), from a reader’s perspective, the requirements have been addressed in the part(s) of the report where they fit into the context thereby incorporating the information by reference. This means that throughout the report codes such as ESRS 2–SBM1 can be found, referring to specific disclosure requirements from the European Sustainability Reporting Standards (ESRS).

Introduction

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5

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7

8

Letter from the Chair and CEO

2024 was a rewarding year for ALK

We delivered on the short-term targets and established a new strategic framework for the long-term development of ALK, including entry into new disease areas.

Peter Halling President & CEO

Anders Hedegaard Chair of the Board

2024 was a rewarding year for ALK. We continued to build on the growth momentum and accelerated revenue growth to 15% in local currencies. Operating profit (EBIT) increased by 65% in local currencies and exceeded DKK 1 billion for the first time, driven by top- line growth, margin expansion and efficiencies.

Growth was powered by an inflow of new patients with moderate to severe, uncontrolled allergies. We estimate that 2.6 million people, an increase of 200,000, were treated with ALK’s products - an important step towards our ambition of helping five million people yearly by 2030.

To define ALK’s journey of sustained growth and earnings improvements towards 2028 and beyond, we launched the new Allergy+ strategy and new long-term financial targets in June. The implementation of the strategy is progressing well and is starting to deliver the desired results. Key achievements in 2024 included approval of the house dust mite tablet for children, progress in food allergy, the licensing agreement for neffy® in the field of anaphylaxis, an expansion of the addressable markets in respiratory allergy, and efforts to calibrate ALK’s business platform to focus on high-potential growth levers.

Market- leading portfolios

Allergy+ aims to further strengthen ALK’s position in allergy immunotherapy (AIT), address anaphylaxis and food allergy, and pursue innovations for adjacent allergic conditions with high unmet needs.

In each disease area, our ambition is to build a portfolio of solutions with the potential to establish ALK as a global market leader and substantially expand our addressable markets as we help many more patients.

A portfolio is already in place for respiratory allergy, where tablets (SLIT), injections (SCIT) and drops for treatment of multiple allergies have established ALK as the global market leader in AIT. We are also well on our way to build a sustainable portfolio for anaphylaxis, having recently gained the rights to neffy®, the first and only approved nasal spray for emergency treatment of anaphylaxis. This was a prime example of our efforts to bolster ALK's product portfolio through partnerships and in-licencing.

neffy® gives us first- mover advantages in a market about to undergo significant changes, while still leaving room for our Jext ® autoinjector and our next- generation autoinjector currently in late- stage development. We believe that neffy® could reach peak sales of up to DKK 3 billion in anaphylaxis, and to this may be added the potential in other disease areas such as urticaria, currently in phase II development.

In food allergy, our portfolio is spearheaded by the peanut tablet. Based on positive results at the end of 2024, we will now assess the efficacy and safety of the tablet in a phase II trial and, contingent upon success, progress the asset towards phase III development and a subsequent market launch in the late 2020s.

We are also targeting food allergy beyond peanut allergy as well as diseases in the broader allergy space, through novel concepts and approaches in research phase and pre- clinical development. The objective is to continue to develop new treatments for allergic conditions with high unmet needs.

Tablets for all age groups

Another key ambition of the Allergy+ strategy is to expand the reach of ALK’s respiratory tablet portfolio to additional patient groups, particularly children.

Approximately 10 million children suffer from uncontrolled respiratory allergy. They are impacted socially and in school and may face severe health implications. For instance, childhood allergic rhinitis increases the risk of asthma sevenfold. This is why it was of great importance that the authorities in 21 European countries recently approved an expansion of the product indication for our house dust mite (HDM) tablet to include young children, aged five to 11. We expect the North American authorities to conclude the similar ongoing reviews before long.

Subject to approval, ALK’s tree tablet could also become available for children and adolescents from mid-2025 in Europe and Canada. By then, all of ALK’s respiratory tablets will be approved for all age groups – children, adolescents, and adults – in key markets. We expect the complete tablet portfolio for all ages, covering 80% of the most prevalent allergies, to open doors to even more prescribers, and we look forward to helping more children and adolescents live better lives.

Targeted market expansion

Market expansion continues in Europe to enlarge prescriber networks and mobilise more people to act on their allergies. Efforts are also progressing outside Europe with tablets as the focal point. Our partner Torii continues to excel in Japan and is expanding production capacity to meet high demand while also working to bring the grass tablet to Japan. In India, our partner

Dr. Reddy’s Laboratories will be launching ALK’s HDM tablet in 2025 based on a recent regulatory approval. Market adoption of tablets is also advancing in the Southeast Asian markets, served by our partner Abbott, and in Canada, served by ALK itself.

In China, the country with the highest number of people with house dust mite allergy world- wide, we expect to initiate a bridging trial in 2025 to facilitate the regulatory approval of our HDM tablet. The anticipated launch has been postponed by some years, and we have adjusted the Chinese organisation to the new timeline. Our short-term focus in China will be on continued growth of injectable Alutard SQ products.

In the USA, the focus remains on building new sales channels, especially among paediatricians. Some progress was seen in 2024, and US tablet sales continued to grow, but further steps are being investigated to accelerate growth of business in the USA.

Delivering on our promises

Focus and priorities have been top of the agenda in the past year. Careful resource allocation has been – and will remain – key to our planning, as we continue to reduce complexity and scale ALK for further growth.

In 2024, we downsized operations in certain markets with low potential, adjusted the footprint in China, and introduced a range of other optimisation initiatives. In total, these efforts are expected to generate savings of more than DKK 300 million in 2025, which will partly support earnings and partly be reallocated to initiatives with the most potential to generate strong returns and the greatest benefits for patients and prescribers.

These savings allow us to pursue Allergy+ priorities more rigorously – by investing in the pipeline, strengthening the footprint in high- growth markets, and supporting the launches of the children indications and neffy®, among other initiatives – while also improving earnings.

We expect the EBIT margin to increase by 5 percentage points to around 25% in 2025, while revenue is expected to grow by 9-13%, fuelled by more patients being treated. This is in line with the 25-in-25 target that was set in February 2021 on the back of our 2020 annual accounts which showed an EBIT margin of merely 4%.

Long-term ambitions

As a pioneer in the field of allergies for more than a century, ALK's purpose is to help more people, with more solutions, more efficiently.

We are committed to sustaining this trajectory of profitable growth. The Allergy+ strategy targets average revenue growth of at least 10% until 2028. After 2025, the EBIT result is set to grow in line with revenue, as we reinvest improvements beyond the 25% margin in initiatives to bolster long-term growth and profitability.

To meet these targets, we will maintain a financial gearing of maximum 2 x NIBD/EBITDA, which will allow us to both deliver on our ambitions and generate attractive shareholder returns.

Testimony of commitment

In conclusion, we would like to thank our leaders and employees for their efforts. The annual engagement survey showed that engagement among employees is in the top 5% in the international healthcare industry. In light of the recent changes to ALK’s organisation, we see this result as a testimony to our employees’ constant commitment to helping more people with allergy to live better lives.

We wish to thank our partners, too, whose collaboration is part of our success. We also appreciate the growing number of patients and prescribers who place their trust in our products. Finally, we would like to thank our shareholders. As ALK’s performance continues to improve, we look forward to rewarding our owners through sustained, long-term value creation.

Anders Hedegaard Peter Halling Chair of the Board President & CEO

ALK at a glance

ALK is a global specialty pharmaceutical company focused on allergy and allergic asthma. ALK markets allergy immunotherapy (AIT) and anaphylaxis treatments for people with allergy.

ALK is committed to growth. The company's tablet portfolio is key to driving growth and currently constitutes 51% of the global revenue. ALK's primary focus is on broadening its core business in respiratory allergies and gradually expand into the wider allergy field, including anaphylaxis, food allergy, and new adjacent disease areas with high unmet needs. ALK aspires to help five million people living with allergy by 2030.

ALK markets a diversified portfolio of products, including AIT tablets, injections, and drops as well as adrenaline autoinjectors and nasal sprays.

As a pioneer in the field of respiratory allergies for more than a century, ALK’s purpose is to help more people, with more solutions, more efficiently.

Business model

ALK's business model is based on unique production processes, immunology insights, strong research and development skills, and commitment to applying modern science to allergies as well as a comprehensive commercial infrastructure, especially in Europe.

Business and value chain ESRS 2-SBM1-42(a,b,c)

ALK's activities cover the entire value chain of developing, sourcing, producing, and marketing a diversified portfolio of products for diagnosing and treating allergies, allergic asthma, and acute anaphylactic reactions.

Naturally sourced allergens (proteins) are vital active pharmaceutical ingredients in ALK's core AIT products. ALK’s unique manufacturing processes ensure its products meet required quality standards and represent a significant entry barrier to potential competitors, ensuring sustained market exclusivity for ALK.

~2,800 employees with diverse talents +100 years’ profound understanding of allergy

Insights from academia, patients and partners Raw materials, energy, water, etc.

resources Digital engagement platforms

200,000 additional patients treated in 2024, bringing the total number to 2.6 million

380 million AIT doses produced (excluding ALK's SCIT bulk extracts in the USA)

2024 performance highlights

Revenue, DKK

5,537 million

15% organic growth in local currencies, in line with latest guidance

Gross profit, DKK

3,552 million

64% gross margin, driven by benefits of scale and efficiencies

Sustainability

Earnings (EBIT), DKK

1,091 million

20% EBIT margin, in line with latest guidance

Free cash flow, DKK (204) million

Impact of higher earnings offset by the DKK 1 billion neffy® upfront payment

5,384 tonnes CO2 eq

Decrease of 2% in CO2 emissions from production sites (scope 1 and 2) Target: 42% reduction by 2030 compared to 2022

Patients in treatment

2.6 million

Net increase of 200,000 Target: ALK aspires to annually help 5 million people living with allergy by 2030

Employee headcount and turnover

2,812 / 17%

Decrease in employee headcount and increase in turnover due to organisational adjustments

Suppliers with science-based targets 37%

Increase in share of suppliers with science-based targets to 37% Target: 80% by 2028

Gender diversity 45%

Underrepresented gender in Executive Leadership Team and direct reports in management positions Target: 40%

Work-related accident rate

1.5

6 work-related accidents with absence, leading to an increased lost time injury frequency rate of 1.5

2025 outlook

2025 is expected to be yet another year of robust revenue and earnings growth, in line with ALK’s long-term financial ambitions.

(Revenuegrowthratesarestatedasorganicgrowthinlocal currencies,unlessotherwiseindicated)

Revenue is expected to grow by 9-13% in local currencies, driven by growth across all sales regions and product groups. This growth will be predominantly attributable to higher volumes, as ALK expects to treat more patients with its allergy immunotherapy (AIT) and anaphylaxis products.

The EBIT margin is projected to further improve to around 25%, an increase of approximately 5 percentage points, driven by revenue growth, improving gross margin and optimisations.

The outlook is based on the following main assumptions:

Revenue

Tablets remain key to growth. Tablet sales are expected to grow by double digits in all sales regions, driven by a growing number of patients in treatment, including more children and adolescents following the paediatric launch of the house dust mite tablet and the anticipated paediatric launch of the tree tablet. ALK expects a reduced impact from price and rebate adjustment in 2025 compared to 2024 where these made a positive contribution to sales growth.

The combined SCIT/SLIT-drops sales are projected to continue their growth trend, primarily benefitting from higher volumes and market expansion in Europe, supported by improved pricing in North America.

Growth in the combined sales of Other Products (adrenaline, diagnostics, PRE-PEN®, and life science products) is projected to further improve, primarily benefitting from the expanded adrenaline portfolio (Jext ® and neffy®).

ALK’s European markets remain key to growth, however ALK also expects growth in its North American and International markets. As usual, the timing of product shipments to China and Japan may lead to quarterly fluctuations in revenue.

Costs

The gross margin is expected to improve slightly, mainly driven by higher revenue, changes to the sales mix, and production efficiencies. The in- licensing of neffy®, which will hold a lower gross margin, as well as inflationary pressure are expected to partly off-set the improvements.

R&D expenses are expected to increase in support of the peanut SLIT-tablet programme, pre-clinical development projects, and the clinical trial with ACARIZAX® in China. R&D expenses are expected to remain at around 10% of the projected revenue.

Sales and marketing as well as administrative expenses are expected to decrease slightly, as savings will offset the planned growth investments in e.g. the neffy® rollout and the paediatric launches. In 2024, non-recurrent one-off costs for optimisation and prioritisation initiatives totalled DKK 75 million.

Other assumptions

• The forecast assumes an average growth in the patient inflow in the 2024/25 initiation season in Europe, with growth indicated to be lower than the exceptional 2023/24 season, but better than the 2022/23 season.

• The in-licensing of the neffy® nasal spray is expected to contribute modestly to revenue growth from the second halfyear, while investments in market building activities will adversely impact the EBIT margin.

• CAPEX investments are projected at around DKK 400 million, excluding potential neffy® milestone payments, and ALK assumes a continuous build-up of inventories broadly in line with revenue growth to support future growth. Free cash flow is expected to be positive at DKK 500-700 million

• Except for neffy®, no additional revenue is included from acquisitions, partnerships, or in-licensing activities, nor are any additional payments to M&A or additional in-licensing activities included.

• The outlook is based on current exchange rates, resulting in an immaterial effect on reported revenue and EBIT.

Forward- looking statements

This report contains forwardlooking statements, including forecasts of future revenue, operating profit, and cash flows as well as expected business-related events. Such statements are subject to risks and uncertainties, as various factors, some of which are outside ALK's control, may cause actual results and performance to differ materially from the forecasts made. Such factors include, but are not limited to, consequences of pandemics, general economic and business- related conditions including: legal issues, uncertainty relating to demand, pricing, reimbursement rules, partners’ plans and forecasts, fluctuations in exchange rates, competitive factors, reliance on suppliers and tariffs. Additional factors include the risks associated with the sourcing and manufacturing of ALK’s products, as well as the potential for side effects from the use of ALK’s products, as allergy immunotherapy may be associated with allergic reactions of differing extent, duration, and severity.

Please refer to the Risk management section on pages 24-27

Business and strategy Introduction to Allergy+

ESRS 2-SBM1-40(e)

The Allergy+ strategy, launched in June 2024, builds on ALK’s promise to provide life- changing solutions to the millions of people with allergy. The strategy is based on four pillars.

ALK will prioritise and focus the commercial activities to strengthen its global leadership in respiratory allergy. Key initiatives include targeted expansion of the respiratory tablets to new patient groups and geographies, efforts to increase prescription depth and breadth, digital mobilisation of patients and prescribers, and investments in highimpact markets.

Innovate

To help more people with allergies, ALK will innovate and expand its R&D pipeline in a balanced way. ALK will maximise the value of existing core products and diversify the portfolio into food allergy, anaphylaxis and other adjacent, allergic diseases with potential to become new growth levers. The ambition is to become a market leader in each disease area.

Activities and targets in the Allergy+ strategy are underpinned by ALK’s commitment to cultivate the capabilities of its people and organisation to foster a strong performance culture through high engagement and conduct business sustainably by improving access to allergy care and reducing the environmental footprint.

To reduce complexity and maintain competitiveness, ALK will further optimise operations and scale for growth. Initiatives include streamlining the cost base, reducing structural complexities, and investing in digital infrastructure. ALK will continue to focus on high quality, expand production capacity and longer- term explore options to optimise the manufacturing set- up.

Strategy progress: Review of Allergy+ implementation

2024 saw a re- allocation of resources to high- potential growth levers –market expansion, innovation, licensing, and capacity increases – with the largest potential to generate strong returns and the greatest impact for patients and prescribers.

In 2024, ALK took a series of steps to advance the Allergy+ strategy. The implementation of the strategy progressed as planned and the new strategy started to deliver the anticipated results.

Full paediatric coverage

S4-4

Key initiatives with respect to the current core products were the targeted expansion of the respiratory tablet portfolio to new prescribers and patients, particularly children, and new geographies.

Work intensified in 2024 to secure regulatory approvals to expand the product indications for the house dust mite (HDM) tablet and the tree pollen tablet to include young children, after authorities in Europe and North America accepted ALK’s regulatory filings for review. The filings were based on the largest- ever phase III paediatric trials within the field, which ALK successfully completed in 2023.

In December 2024, the authorities in 21 European countries approved the HDM tablet, marketed as ACARIZAX®, for treat-

ment of young children aged five to 11. Initial market introductions have taken place in ALK’s largest market, Germany, and other key markets. Subject to approval, the HDM tablet is also projected to become available for young children in the first half of 2025 in Canada and the USA, where the tablet is marketed as ODACTRA®.

The regulatory reviews of the tree tablet ITULAZAX® are expected to be completed by mid-2025 in Europe and Canada, allowing this tablet to become available for children and adolescents ahead of the 2025/26 initiation season for pollen tablets.

Regulatory submissions for paediatric use have also been submitted in other markets, such as Switzerland, the UK, and Southeast Asia. During the second half of 2025, all five tablets are expected to be approved for all age groups – children, adolescents, and adults – in all key markets across the main respiratory allergies.

Leveraging full paediatric coverage of the tablet portfolio is anticipated to deliver a material contribution to ALK’s medium- and long- term growth. ALK’s commercial organ -

European children with moderate to severe house dust mite- induced allergy will soon gain access to treatment with ACARIZAX®.

isation advanced launch preparations in 2024 with further initiatives lined up for 2025. Launch activities will focus on all existing tablet prescribers as well as potential new prescribers in selected countries – paediatricians, ENT (ear, nose, and throat) specialists and other medical professionals, treating the millions of children suffering from uncontrolled respiratory allergies.

Growing the patient base

S4-4

In Europe, ALK continued its efforts to mobilise eligible patients, increase prescription depth and breadth among its key prescribers, and strengthen advocacy for registered, evidencebased treatment among regulators, payers, and prescribers. As a result, ALK’s patient base saw double-digit growth, driven mainly by the tablet portfolio. To further leverage its strongholds and accelerate sales momentum, ALK increased investments in high- growth markets, while operations in a few other markets were downsized until market conditions improve.

NICE review in the UK

S4-4

In the UK, a recent recommendation from the prominent National Institute for Health and Care Excellence (NICE) has paved the way for ACARIZAX® to be included in the public National Health Service system, making it eligible for general reimbursement. ALK has submitted a similar application for NICE reviews regarding ITULAZAX®. Currently, the UK is the only major AIT market in Europe where ALK's tablets are authorised without adequate public reimbursement.

Expansion outside Europe

S4-4

In Japan – the most important contributor to ALK’s tablet sales outside Europe – ALK is supporting its partner Torii in expanding manufacturing capacity for the Japanese cedar

pollen tablet to meet high demand. The upscaled capacity is expected to become operational in late 2025. Meanwhile, Torii has initiated clinical development of ALK’s grass pollen allergy tablet (GRAZAX®) with a view to expanding the current portfolio comprising CEDARCURE™, the only approved tablet for treatment of Japanese cedar pollen induced allergy, and MITICURE™ for treatment of HDM-induced allergy.

In India, ALK’s partner Dr. Reddy’s Laboratories obtained regulatory approval for ALK’s HDM tablet for treatment of adults with uncontrolled HDM-induced allergic rhinitis and/or allergic asthma as well as adolescents with uncontrolled allergic rhinitis. The tablet, marketed as Sensimune™ in India, will be launched in 2025, as soon as an import license is in place.

Efforts to increase market uptake of tablets are also progressing in the Southeast Asian markets, served by ALK’s partner Abbott, and in Canada. In 2025, ALK’s product offering in Canada will be strengthened by the expected approval of tablets for use in children and the in- licensing of neffy®, as described below.

New clinical trial in China

In China, ALK has finalised the design of a new bridging trial with ACARIZAX®, after feedback from the authorities indicated that the existing clinical data package should be supplemented with further data from Chinese subjects. This was unexpected, given that ACARIZAX® is already approved in 45 markets. Subject to approval, the trial is expected to start in 2025 and enrol around 300 subjects. Contingent upon a successful outcome and regulatory approval, ACARIZAX® could be launched in China towards the end of the current strategy period.

In light of the delayed timeline for the tablet, ALK has reorganised its activities in China. In the short run, ALK’s organisation will focus on growing sales of SCIT ALUTARD products in China,

which is about to become the world’s largest market for HDM AIT.

Building US sales channels

In the USA, the focus is on building new sales channels for tablets, especially among paediatricians, in addition to working with the existing prescriber base among relevant allergists. Some progress was seen in 2024, and the expected approval of the paediatric indication for ODACTRA® will further strengthen ALK’s offering to this segment. Further steps will be investigated in 2025 to grow the prescription- based tablet business.

New innovations

In 2024, ALK progressed its activities in food allergy, strengthened the product portfolio in anaphylaxis, and pursued innovations to address new adjacent disease areas. The ambition is to become category leader in each area via in- house R&D activities and partnerships, and thereby build new revenue streams to complement the current core business in respiratory allergy.

Positive results in food allergy

At the end of 2024, ALK reported positive interim results from its phase I/II clinical trial for the peanut tablet. Data showed that the tablet was safe and well tolerated across multiple doses. No severe adverse effects and no cases of treatment emergent anaphylaxis were reported. The development has now advanced to phase II for dose finding and efficacy, and the first patients have already initiated treatment. Phase II involves around 125 patients in North America and is scheduled to complete in 2026 after which ALK intends to advance the peanut tablet programme into phase III after which it can be submitted for regulatory approval, expectedly towards the late 2020s.

ALK’s future portfolio in food allergy also spans novel concepts in pre- clinical development, including tree nut allergy.

neffy® is the first and only approved adrenaline nasal spray for emergency treatment of anaphylaxis

Transformative neffy® deal

In emergency treatment of acute allergic reactions (anaphylaxis), ALK entered into a potentially transformative license agreement with US-based ARS Pharma. Against an upfront payment of DKK 1 billion and future milestone payments and sales royalties, ALK was granted exclusive rights to commercialise the neffy® adrenaline nasal spray world- wide, except for the USA, Australia, New Zealand, Japan and China.

EURneffy® (the trade name for neffy® in Europe) has obtained market authorisation in the EU, and ALK expects to start launching the product in key markets from the second half of 2025 once local market access negotiations are completed. Filings for regulatory approvals have recently been submitted in the UK – Europe’s largest anaphylaxis market – and in Canada – the world’s third largest anaphylaxis market. neffy® also has potential in other markets e.g. some of the countries in Asia, the Middle East, and Latin America.

ALK expects neffy® and other future needle- free innovations to transform anaphylaxis treatment and substantially expand the currently under- served markets, as further described on page 17. ALK estimates that neffy® holds a long- term annual peak sales potential in anaphylaxis of up to DKK 3 billion in the licensed territories, where the product will be an important add- on to ALK’s portfolio which covers the already marketed autoinjector Jext ® and a next- generation autoinjector (the Genesis project), currently in late- stage development. With this portfolio, ALK is the only company offering both needle- free solutions and autoinjectors to the market.

New, adjacent disease areas

Under the agreement with ARS Pharma, ALK gains exclusive rights to any new indications in the licensed territories, enabling ALK to address new, adjacent disease areas. In 2025, ARS Pharma plans to begin a phase IIb clinical trial in people with acute flares due to chronic urticaria.

ALK has also initiated in- house innovation work to target new disease areas with strong scientific and commercial links to current portfolio and prescribers. Building on the core capabilities within clinical allergology and immunology, these efforts generally focus on allergic inflammatory conditions and mast cell driven pathologies in the broader allergy space. Targets are not currently disclosed. To fulfil its ambitions, ALK will also explore supplementing in- house development activities with potential licensing deals and partnerships.

Focus and priorities

In 2024, optimisation and prioritisation initiatives were implemented across ALK to reduce complexity and scale for future growth. Initiatives involved manufacturing and quality optimisations as well as downsizing of operations in certain markets with limited immediate growth prospects for AIT. The organisation in China was also adjusted to the new expected timeline for the ACARIZAX® launch. In total, more than 200 positions were made redundant, and ALK expects the optimisation initiatives to generate savings of more than DKK 300 million with effect from 2025, and thereby exceeding the original target.

In 2025, savings from these and other initiatives will partly support ALK’s earnings growth and partly be reinvested in Allergy+ priorities to strengthen ALK’s long- term growth and earnings trajectory. Priorities include investments in pipeline projects such as the peanut tablet development, the launches of neffy® and the tablets for paediatric use, and the strengthening of ALK’s footprint in Northern, Western and Central European markets with sustainable demand for AIT and strong endorsement of evidence- based AIT from regulators, payers, and prescribers.

Status R&D pipeline

Over the past decades, ALK has pioneered the development of standardised allergen extracts, formulated as rapidly dissolving SLIT-tablets. ALK is now expanding its leadership and targeting new geographies and patient groups while also leveraging its technology and capabilities within food allergy and other related disease areas.

Therapeutic area and project name Target indication Phase

Respiratory allergy

HDM SLIT-tablet House dust mite allergic rhinitis – paediatric label extension in the USA and Canada

Tree SLIT-tablet Tree pollen allergic rhinitis – paediatric label extension in EU and Canada

Grass SLIT-tablet Grass pollen allergic rhinitis in Japan

HDM SLIT-tablet House dust mite allergic rhinitis in China

Food allergy

Peanut SLIT-tablet Peanut allergy

Tree nut SLIT-tablet Tree nut allergy

ALK 014 (biologic) Food allergy

Anaphylaxis

Adrenaline autoinjector Emergency treatment of anaphylaxis

Adrenaline nasal spray1 Emergency treatment of anaphylaxis in the UK, Canada, and other markets

New therapeutic areas

Adrenaline nasal spray1 Acute flares in chronic spontaneous Urticaria (CSU)

ALK 014 (biologic) Not disclosed

Global availability of tablets

The tablet for grass pollen allergy (GRAZAX® or GRASTEK®) is approved in 34 countries in Europe, North America, and the Asia Pacific region. Clinical development is ongoing in Japan in 2024.

The tablet for house dust mite allergy (ACARIZAX®, ODACTRA® or MITICURE™) is approved in 45 countries in Europe, North America, the Middle East, and the Asia Pacific region. Regulatory fillings for young children use are oingoing in the USA and Canada.

The tablet for tree pollen allergy (ITULAZAX® or ITULATEK®) is approved in 22 countries in Europe and Canada. Regulatory filings for young children use are ongoing in Europe and Canada.

The tablet for ragweed pollen allergy (RAGWIZAK® or RAGWITEK®) is approved in 15 countries in Europe and North America.

The tablet for Japanese cedar pollen allergy (CEDARCURE™) is approved in Japan.

Supply chain expansions and optimisations

ALK is also investing in continued supply chain expansions and optimisations to support gross margin improvements. To facilitate growth, tablet manufacturing capacity is being expanded to around 800 million units p.a. by 2030 within the existing footprint. Legacy production is also being upgraded, and a supply chain being established for the next- generation autoinjector. These efforts progressed as planned in 2024, and investments will continue in 2025.

2025 will also see a strengthening of procurement processes and capabilities to exploit economies of scale and streamline the supplier landscape, in addition to investments in AI and digital solutions.

Cultivating capabilities

ALK is also executing initiatives under the Cultivate strategic pillar, including working to deliver on its science- based CO2 targets, strengthen its organisational capabilities to support future growth, conduct business in a sustainable manner, and deliver on diversity and inclusion targets.

Please refer to the Sustainability section on pages 36-105.

Long-term financial ambitions

The Allergy+ strategy targets sustained growth in revenue and earnings to 2028 and beyond, supported by careful allocation of resources to highpotential growth levers.

ALK is targeting average revenue growth of minimum 10% in local currencies (5-year CAGR) from 2023 until 2028. The respiratory tablet portfolio remains key to this ambition, as ALK broadens its patient reach and leverages the planned full paediatric coverage.

Revenue grew by 15% in local currencies in 2024, while 9-13% growth is expected for 2025, implying an average revenue growth (CAGR) in the range of 12-14% from 2023 to 2025, which supports that ALK is on track to deliver on its long-term financial ambitions.

The EBIT margin improved to 20% in 2024. ALK is targeting an EBIT margin of around 25% in 2025 after which earnings improvements beyond the ~25% margin will be re- invested in initiatives to bolster the long- term growth and profitability trajectory, such as commercial activities, R&D, business development, and infrastructure. This implies that the reported EBIT result after 2025 is expected to grow in line with revenue. This does not rule out the possibility that margins could be higher or lower than ~25% in the strategy period, depending on market conditions and the timing of strategic initiatives.

ALK will maintain an efficient capital structure with a financial gearing of maximum 2 x NIBD/EBITDA and will allocate capital in a disciplined way to deliver on its growth ambitions while also generating attractive shareholder returns. ALK expects free cash flow to improve, and cash will be allocated in the following order of priority: Investments in organic growth, including R&D (projected in the range from 10-15% of revenue p.a. in 2025-28); CAPEX (projected in the range from DKK 400-600 million p.a. in 2025-28); business development and licensing activities; and finally cash distribution to shareholders via dividends and/or share buyback programmes.

Despite the upfront payment of DKK 1 billion (USD 145 million) related to the licensing agreement for neffy®, the net debt to EBITDA ratio was only 0.4x in 2024. In 2025, the ratio is expected to further decrease and leave ample room for value- creating capital allocation.

≥10% revenue growth 2023-28 (CAGR)

~25% EBIT margin from 2025-28 ≤2 NIBD / EBITDA

Expanding the addressable markets

ESRS 2-SBM1-40(g);S4-41

ALK addresses markets with a current value of around DKK 13 billion. The Allergy+ strategy aims at helping more people with allergies to a better life by unlocking the potential in existing markets and expanding into new therapy areas with high unmet needs.

(Marketdatabelowisownestimates,tothegreatestextent possiblebasedonexternalsources,includingIQVIAandother localmarketdataproviders).

The global market for allergy immunotherapy (AIT) treatments – ALK’s core business – is estimated to be worth around DKK 12 billion, measured in 2024 ex- factory sales. The AIT market is underpenetrated and geographically concentrated around Europe, North America, China, and Japan. Since 2019, the AIT market is estimated to have grown on average by high single digits, while ALK’s revenue from tablets, injections (SCIT) and drops has grown by 12% p.a. (CAGR), thus strengthening ALK’s market position as market leader.

1 Numbers in this section have not been subject to the limited assurance on the sustainability statement carried out by the independent auditor.

Respiratory Allergy

>50 million

People eligible for AIT

~12bn DKK

Estimated AIT market value

~45% ALK share of global market

ALK core business with high potential

>20 million

People at risk for anaphylaxis in Europe

~4 million

Autoinjectors sold in Europe per year

~1.4bn DKK

Estimated market value in Europe

Under-treated, high potential therapy area with the right innovation

Allergy New adjacent therapy areas

~200 million People affected globally

~8% of children are affected in the USA

~2.5 million

children (4-17) with peanut allergy in the USA and Europe

Therapy area with high unmet need, close to core with high potential

Indications with high unmet needs and strong capability fit to ALK

Even so, respiratory allergy remains a disease area with significant under- treatment. At least 50 million people with severe uncontrolled symptoms would potentially be eligible for AIT treatment, but only around five million were estimated to receive AIT in 2024, hereof more than two million with products from ALK’s AIT portfolio, which spans around 40 different allergies, excluding US bulk SCIT extracts.

Strong fundamentals

Although it varies considerably across geographies and age groups, the prevalence of respiratory allergy is on the rise, and research suggests that this trend will continue. Global warming, for instance, affects plant and pollen cycles, prolongs pollen seasons and causes species, such as ragweed, to spread to new regions. Urbanisation sees more people migrating to cities where they are exposed to higher levels of air pollution, while people living in sterile, urban environments do not enjoy the same protection as people in rural areas, where a wide range of microbial exposures lowers the risk of allergic sensitisation and disease.

Market expansion is a key part of ALK’s Allergy+ strategy. Efforts include enlargement of AIT prescriber bases, digital mobilisation of eligible patients, advocacy for evidence- based medicines, and efforts to expand the reach of the respiratory tablet portfolio to certain new geographies and new patient groups, not least by leveraging the up- coming paediatric indications for the full tablet portfolio. Globally, it is estimated that more than ten million children, aged five to 11, have uncontrolled respiratory allergies and the number is growing.

Significant under- treatment

Anaphylaxis, currently ALK’s second largest disease area, is also an area with significant under-treatment and high growth potential. In Europe alone, more than 20 million people are estimated to be at risk of experiencing severe, acute allergic reactions (anaphylaxis) after exposure to e.g. specific food, or bee or wasp

stings, but only around 2 million Europeans carry recommended rescue medication, predominantly adrenaline autoinjectors (AAIs) such as ALK’s Jext ® pen. The number of AAIs sold in Europe has been growing by 8% p.a. over the last decade.

The recent in- licensing of neffy®, the world’s first and only nasal spray for anaphylaxis treatment, allows ALK to cultivate markets in Europe and Canada – where the combined value of current AAI sales is estimated at around DKK 1.6bn (2023) – and highpotential markets in Asia and the Middle East. neffy® is expected to expand markets because the spray eliminates needle- related safety concerns, fear and hesitation, as demonstrated by other emergency medicines going from needles to nasal.

Food allergy on the rise

ALK’s ambition in food allergy is to build a portfolio of treatments that address unmet medical needs among the ~200 million people affected worldwide, particularly children. The preva -

lence of food allergy is increasing, mostly driven by pollution, urbanisation, and dietary factors associated with cultural/ social behaviours (e.g. obesity, vitamin D deficiency, dietary fat, etc.)

ALK’s most advanced programme targets peanut allergy, the most common cause of severe, life- threatening food- related allergic reactions. The condition often manifests during childhood and persists into adulthood for up to 80% of patients. In the USA, peanut allergy affects up to 1.5 million children and adolescents, while in Europe, around one million children and adolescents are affected. Some reports suggest that the prevalence of peanut allergy has tripled over the last decade.

ALK's revenue split 2024

AIT treatments

Anaphylaxis

Others

Estimated number of patients in treatment with ALK products (AIT and anaphylaxis) and AIT products based on allergens from ALK.

Others include diagnostics of allergens, diagnostics of penicillin allergy, and life science products

In 2023, a net increase of ~200,000 AIT patients was offset by fewer Jext ® patients due to intermittent supply shortages. 2024 saw growth in the number of both AIT and Jext ® patients.

ALK targets 5 million patients annually by 2030

Financial performance Sales and market trends

ALK’s full-year revenue in 2024 was DKK 5,537 million (4,824) after 15% organic growth in local currencies, reflecting continued growth across Europe and International markets. Europe was the key growth driver with double- digit growth in tablet, SCIT/SLIT-drops, and Jext ® sales.

(Comparativefiguresfor2023areshowninbrackets.Revenue growthratesareorganicandstatedinlocalcurrencies,unless otherwiseindicated)

Europe

Revenue in Europe grew by 22% in local currencies to DKK 3,914 million (3,216) with growth in all product lines.

The European AIT market continued to recover strongly from its weakness in the first half of 2023. In 2024, demand for AIT was strong and market conditions were largely positive with improved pricing in some markets and no significant changes to reimbursement. ALK’s AIT sales increased in almost all markets with double-digit growth in most Northern, Central and Western European markets – including the region’s largest market Germany – as ALK further progressed its efforts to activate patients, prescribers, payers, and key opinion leaders.

Following gains in market share in Germany and other key markets, ALK consolidated its position as market leader in Euro -

pean AIT in 2024, despite a softer sales performance in Italy and Spain after restructuring of the sales forces.

European tablet sales increased by 31%. The growth was due to higher volumes driven by the strong inflow of new patients starting treatment during the 2023/24 initiation season, particularly in Central, Western and Northern Europe, combined with price and rebate adjustments. Volumes accounted for roughly half of the growth while improved pricing, including rebate adjustments, accounted for the other half.

Tablet sales in the main market Germany continued to benefit from the accelerated market transition towards evidencebased, registered products, leading to strong double-digit sales growth. Across markets, tablet sales were less influenced by pan-European trading patterns at wholesaler levels than last year, although these movements are still impacting developments.

The number of new patients initiated on tablets during 2024 is estimated to have increased by more than 10%.

Combined sales of injection- and drop- based AIT products (SCIT/SLIT-drops) increased by 10%. Sales of SCIT progressed in most Central and Northern European markets, driven by higher volumes as well as price and rebate adjustments. Sales of SLIT-drops, marketed mainly in France, performed well with growth linked to higher patient inflow to existing and partly also new allergy doctors.

Sales of Other products and services (the Jext ® adrenaline pen, diagnostics, etc.) increased by 32%, driven by the recovery in

Jext ® sales. Jext ® sales grew by 39% against 2023, where issues at a contract manufacturer limited market supply.

North America

Revenue in North America was unchanged in local currencies to DKK 906 million (908) and was impacted by a weak development in the region’s main market, the USA, whereas performance in Canada was largely as expected.

Tablet sales increased by 15%, mainly on higher volumes in the USA and Canada. As previously announced, the impact from higher realised selling prices in the USA declined in the second half of the year.

Sales of the region’s largest product group – SCIT bulk allergen extracts for primarily US allergists – were flat and performing below expectations due to competition considered to have decreased prices.

Sales of Other products (diagnostics, PRE-PEN®, and life science products) decreased by 7%, mainly due to discontinuation of lower margin life science customers and lower PRE-PEN® sales in the first half of 2024. The integration of the PRE-PEN® penicillin diagnostic operation was completed according to plan, but sales performed below expectations.

ALK is market leader in AIT in Canada and number two in the US market.

International markets

Revenue in International markets increased by 4% in local currencies to DKK 717 million (700). Progress was driven by growth in ALK’s product shipments to the region’s largest market, Japan, which together with China account for around 90% of revenue in this region.

Tablet revenue in the region was up 9%. Revenue from the main tablet market Japan (product shipments and sales royalties) grew by single digits and was somewhat impacted by phasing of shipments. Demand for AIT in Japan remains strong and Torii consolidated its position as market leader through continued growth in in- market tablet sales. However, capacity constraints as expected prevented Torii from fully meeting demand for CEDARCURE® in 2024. Although still small in scale, tablet

sales continued to grow encouragingly in the Southeast Asian markets, operated by Abbott, and other minor markets.

Revenue from SCIT product shipments to China registered a double-digit decline as no shipments were sent to China during the renewal of ALK’s import license in Q4 and due to in-market inventory adjustments. Chinese in- market sales of SCIT products continued to show double-digit growth supported by an expansion of the prescriber base. ALK consolidated its position as number two in the fast- growing Chinese AIT market.

Revenue by geography

ESRS 2-SBM1-40(a.ii, f)

Revenue by product line

ESRS 2-SBM1-40(a.i, f)

Revenue by product line

SLIT-tablets

SCIT/SLIT-drops

Other

Financial highlights and key ratios for the ALK Group

1 Management’s review comprises pages 1-105 as well as ‘Financial highlights and key ratios by quarter for the ALK Group’ on page 164.

2 Financial highlights and key ratios stated in EUR constitute supplementary information to the Management’s review. The exchange rate used in translating from DKK to EUR is the exchange rate prevailing on 31 December 2024 (EUR 100 = DKK 746) (31 December 2023: EUR 100 = DKK 745).

For definitions and reconciliation of alternative performance measures, see page 145.

Information on shares

Financial review

ALK’s full-year operating profit (EBIT) increased by 65% in local currencies to DKK 1,091 million (666). Overall results were in line with the latest outlook issued in November 2024.

(Comparativefiguresfor2023areshownin brackets.Revenuegrowthratesarestatedin localcurrencies,unlessotherwiseindicated)

Revenue increased by 15% in local currencies to DKK 5,537 million (4,824), mainly driven by a strong momentum for tablet sales, particularly in Europe. Exchange rates had an immaterial impact on reported revenue.

Cost of sales increased by 11% in local currencies to DKK 1,985 million (1,789). The gross profit of DKK 3,552 million (3,035) yielded an improved gross margin of 64% (63%), mainly reflecting volume growth, changes to the sales mix, improved pricing, and production efficiencies. As expected,

these positive factors were somewhat offset by inflationary pressure on the cost base and minor one- off costs related to optimisation activities in product supply.

Capacity costs increased by 4% in local currencies to DKK 2,464 million (2,371). As planned, R&D expenses decreased by14% in local currencies to DKK 531 million (618) reflecting last year’s completion of late- stage clinical trials. Sales and marketing expenses were up 10% in local currencies to DKK 1,564 million (1,422), in support of continued growth. Administrative expenses increased 12% in local currencies to DKK 369 million (331), mainly linked to costs for the Allergy+ strategy process. Optimisation of resources and general savings contributed positively to the overall cost development.

Total costs included one- off costs of DKK 75 million (0) associated with optimisation initiatives in Europe and China which mainly impacted Sales and marketing expenses.

The operating profit (EBIT) amounted to DKK 1,091 million (666), an improvement of 65% in local currencies and 64% in reported currency. Despite the above- mentioned one- off costs, the EBIT margin progressed to 20% (14%) due to higher sales, gross margin improvements and a lower capacity cost- torevenue ratio – the ratio was down to 45% (49%). Exchange rates impact on growth in reported EBIT was negligible.

Net financials showed a loss of DKK 34 million (a loss of 19) related to interest expenses and currency losses.

Tax on the profit totalled DKK 242 million (161), and the net profit increased to DKK 815 million (486).

Cash flow from operating activities was DKK 1,213 million (667), as higher earnings were partly offset by changes in working capital, which mainly related to planned inventory build- up in support of future revenue growth.

Cash flow from investment activities was DKK minus 1,417 million (minus 375), reflecting investments in continued capacity

build- up for tablet production, upgrades of legacy production, and the development of the next- generation adrenaline auto- injector. Investments also included an upfront payment of DKK 1 billion related the strategic licensing agreement for neffy® with ARS Pharma as well as acquisition of the PRE-PEN® operation in the USA.

Free cash flow was DKK minus 204 million (positive at 292) following the upfront payment of DKK 1 billion (USD 145 million) to ARS Pharma related to the neffy® license agreement.

Cash flow from financing activities was DKK 310 million (minus 31), mainly from new borrowings related to the neffy® upfront payment.

At the end of the year, ALK held 1,423,497 of its own shares, or 0.6% of the share capital, versus 0.7% at the end of 2023.

Research and development

Research and development expenses

Percentage of revenue

Equity totalled DKK 5,373 million (4,447) at the end of the year, and the equity ratio was 65% (66%). The net debt to EBITDA ratio (financial gearing) was 0.4 (0.3) at the end of the year. Sales, marketing and administration

expenses

and marketing expenses

of revenue

Q4 review

Q4 revenue increased by 11% in local currencies to DKK 1,499 million (1,345), driven by the strong momentum in European tablet sales. Operating profit (EBIT) increased by 6% to DKK 205 million (194), reflecting a planned increase in costs to R&D and Sales and marketing as well as one- off costs.

Revenue in North America decreased by 7%, reflecting a continued soft performance and a lower impact from recent improvements to the average selling prices for tablets in the USA.

Revenue from International markets decreased by 25%, reflecting planned phasing of tablet shipments to Torii in Japan and immaterial SCIT product shipments to China during the renewal of ALK’s import license which is progressing according to plans. In- market sales in both markets continued to show double- digit growth.

(ComparativefiguresforQ42023areshowninbrackets. Revenuegrowthratesarestatedinlocalcurrencies,unless otherwiseindicated).

ALK delivered 2024 full-year results in line with the most recent financial outlook, following a Q4 which saw 11% revenue growth, driven by a continued strong performance in Europe. Revenue growth was lower than in Q2 and Q3 due to previously announced factors: Fluctuations in the timing of product shipments to Japan and China, and a weaker sales performance in the USA.

Exchange rates had an immaterial impact on reported revenue.

Revenue in Europe increased by 22%, fuelled by a 32% growth in tablet sales which was driven by higher volumes linked to the inflow of new patients, combined with price and rebate adjustments. Combined sales of injection- and drop- based AIT (SCIT/ SLIT-drops) increased by 11%, while sales of Other products (the Jext ® adrenaline pen and diagnostics) increased by 37%, driven by the recovery in Jext ® sales.

The gross margin improved to 64% (63%), mainly reflecting changes to the sales mix, improved pricing, and production efficiencies. These factors were somewhat offset by inflationary pressure on costs.

Capacity costs increased to DKK 749 million (651) as ALK advanced its strategic investments. R&D expenses increased by 11% in local currencies and included costs to the peanut tablet development programme and the upcoming clinical trial with ACARIZAX® in China. Sales and marketing expenses increased by 16% in local currencies in support of the upcoming paediatric launches and high activity levels in key markets. Total costs included one- off costs related to the in-licensing of neffy®, as well as DKK 26 million related to the previously announced optimisation initiatives in Europe and adjustments of the Chinese organisation due to the delayed timeline for the ACARIZAX® approval. Excluding these one- off costs, the capacity costs to revenue ratio was unchanged at 48% (48%).

Operating profit (EBIT) was higher at DKK 205 million (194), mirroring higher sales and efficiencies across the business offset by strategic growth investments and one- off costs related to optimisation activities.

Risk management

ALK’s Executive Leadership Team is responsible for the ongoing management of risks throughout the value chain, including risk identification, the assessment of probabilities and potential consequences, and the introduction of risk- reducing measures.

The Executive Leadership Team has a risk committee to assist it in meeting its overall responsibility for risk management. The Risk Committee comprises representatives from each functional area relevant to ALK’s risk profile. The Risk Committee meets twice a year or more, as and when required to perform its tasks. Risks are systematically assessed according to a twodimensional matrix, rating the potential impact and probability of each risk. A risk management report with key enterprise risks and recommended mitigation plans is presented to the Executive Leadership Team before it is submitted to the Board of Directors each year for their review and approval.

The following is a description of ALK’s key enterprise risks, and the main initiatives taken to mitigate these risks. The risk movements compared to the previous year are indicated.

Risk impact

The impact of the risk has increased compared to the year before

The impact of the risk is stable and has not changed from the year before The impact of the risk has decreased compared to the year before

Commercial risks impacting revenue growth

Description

The degree of market approval and acceptance for a new product, or a new indication for an existing product, depends on several factors, including the demonstration of clinical efficacy and safety, cost- effectiveness, reimbursement/market access, convenience and ease of administration, potential advantages over alternative treatment methods, competition, and marketing and distribution support. If ALK’s products, primarily tablets and anaphylaxis products, fail to achieve acceptance in major markets, this could have a significant impact on the company’s ability to generate revenue.

Price pressures mandated by authorities can have a significant impact on the company’s earning capacity. In most of the countries in which ALK operates, prescription drugs are subject to reimbursement from, and price controls by, national authorities and healthcare providers. This often results in significant price differences between individual markets. Exceptionally, governments and national authorities may introduce permanent or temporary economic measures that also affect the pricing and reimbursement of medicines, for example, because of a major economic downturn.

Fluctuations in geo- political stability, trade relations, or regulatory environments in key regions may disrupt business operations, and market access, leading to potential financial losses and reputational damage for ALK.

Risk mitigation

ALK closely monitors economic, market and regulatory developments as they relate to product pricing, along with the competitive situation and initiatives in all important markets. ALK regularly conducts surveys of market conditions and commits significant resources to providing information on allergy treatment to doctors and patients. ALK continues its focus on market access strategies, especially in the USA, China, Spain, Canada, and UK.

ALK actively engages in dialogue with authorities with the aim of securing fair pricing and reimbursement agreements and maintains a strong focus on its market access strategy. ALK is strongly committed to evidenced- based medicine, based on strong clinical and health economic evidence as the basis for pricing and reimbursement.

ALK consistently monitors the geo- political landscape and proactively implements mitigating measures in pertinent regions as needed.

Severe IT security breaches

Description

The threat of cyberattacks continues to intensify globally and ALK is no exception. Disruption to IT systems, such as severe breaches of data security, may occur across the global value chain, where wellfunctioning IT systems and infrastructure are critical for the company’s ability to operate effectively.

Risk mitigation

ALK has an IT and cybersecurity strategy in place to prevent intruders from causing damage to systems or gaining access to critical data and systems. ALK continuously invests in upgrading IT security. Awareness campaigns, access controls, intrusion detection and prevention systems have all been implemented. Further initiatives are planned, and systems are regularly upgraded to increase network security.

2024 movement:

2024 movement:

Production and quality issues impacting product supply and patient safety

Description

ALK’s products are subject to many statutory and regulatory requirements with respect to issues such as safety, efficacy, and quality. The products may be associated with side- effects such as allergic reactions of varying extent, duration, and severity. Meeting pharmaceutical quality standards is a prerequisite for the company’s ability to supply products and hence its competitive strength, and for the company’s earnings and sales.

As ALK continues to rationalise its product portfolio, there may be risks associated with the discontinuation of its products. Among others, these may include potential production interruptions at manufacturing sites during decommissioning and change- over work, loss of sales from products for which no suitable ALK substitute product exists, or inability to meet sudden spikes in demand for other products due to patients switching from discontinued products.

As part of its supply chain, ALK is dependent on selected key third parties for key production processes and supplies, which poses a risk for ALK’s ability to deliver products, especially tablets, to the markets.

Risk mitigation

ALK stringently monitors product and manufacturing quality compliance and safety via quality assurance, pharmacovigilance and sales and marketing activities. If, despite the high levels of quality and safety, a situation should occur in which it is necessary to recall a product, ALK has procedures in place to ensure that this can be managed swiftly and effectively and in accordance with regulatory requirements. Production and manufacturing processes are subject to periodic and routine inspections by regulatory authorities as a regular part of their monitoring to ensure that ALK observes the prescribed requirements and standards.

ALK has invested significantly in recent years to increase the robustness and compliance of the legacy business by reducing manufacturing complexity, and all possible steps are taken during portfolio rationalisation work to mitigate any potential impact on other areas of manufacturing or the wider business. ALK conducts risk planning including the prevention of unwanted events, and preventive inventory management.

ALK manages key third- party dependency risks through long- term contracts, diligent production forecasting, monitoring, and joint steering committees. ALK continuously monitors its dependencies on key third parties and considers relevant risk mitigation measures including alternative supply setups.

2024 movement:

Failures or delays in product development

Description

The future success of ALK depends on the company’s ability to maintain current products and to successfully identify, develop and market new, innovative drugs.

A pharmaceutical product must be subjected to extensive and lengthy clinical trials to document qualities such as safety and efficacy before it can be approved for marketing. During the development process, the outcomes of these trials are subject to significant risks. Even though substantial resources are invested in the development process, the trials may produce negative results. The risk fluctuates over time in line with the extent and nature of ALK’s product development activities.

Failures or delays in the development process, or in obtaining regulatory approvals, may have a major impact on patients who are not able to benefit from the products, and on ALK’s ability to achieve its long- term goals.

Risk mitigation

ALK and its collaboration partners carry out thorough risk assessments of their research and development programmes throughout the development and registration processes, in the interests of risk mitigation to maximise the likelihood of the products reaching the market.

ALK’s Scientific Committee is responsible for other patient/productrelated innovation activities. The committee provides instrumental strategic sparring on matters relating to R&D activities and other patient/product- related innovation, including reviewing R&D programmes and the overall R&D pipeline.

2024 movement:

Breaches of legal or ethical standards

Description

Compliance requirements are generally increasing in many areas, and as ALK expands into more markets, the company is exposed to more complex compliance requirements. Non- compliance with applicable regulations and legislation, or ALK’s Code of Conduct, could negatively impact the company’s good reputation which is essential to operating within the pharmaceutical industry. Patents and other intellectual property rights are important for developing and retaining ALK’s competitive strength.

Risk mitigation

ALK strives to act professionally, honestly and with high integrity throughout the company in its dealings with stakeholders. ALK’s Code of Conduct defines the company’s high standards of ethical behaviour in relation to customers, employees, shareholders, society, suppliers, and partners. Each year, all employees are asked to sign and confirm their knowledge of the Code of Conduct and to take an online test. ALK has established a whistleblower scheme which allows for confidential and anonymous internal and external reporting of potential or suspected wrongdoing. Immediate action is taken on substantiated non- compliance.

Internal controls and policies are in place to safeguard ALK’s intellectual property rights. The risk that ALK might infringe patents or trademark rights held by other companies, along with the risk that other companies might attempt to infringe ALK’s own patents and/or trademark rights, are monitored and, if necessary, suitable measures are taken.

Talent retention and attraction

Description

ALK is dependent on being able to attract and retain employees across all key functions and markets to deliver on its strategy. Failure to attract, develop and retain the right talents may have a material impact on the company’s market and research efforts.

Risk mitigation

Among other things ALK manages this risk by continuously monitoring and improving employee engagement, offering its staff opportunities to develop their professional competencies, and by continuously monitoring the total reward packages against the market. ALK is also focusing increasingly on how to position itself as an attractive employer, and how best to identify, attract and recruit future global and local talents with the skills and capabilities that will be required in the future.

2024 movement:

2024 movement:

Corporate governance and ownership

Corporate governance

ALK’s statutory corporate governance statement for 2024 provides an account of ALK’s two- tier management structure, including the composition, competencies, activities, selfassessment, and remuneration of the Board of Directors. The statement, which is prepared pursuant to section 107b of the Danish Financial Statements Act, also describes key elements of ALK’s internal control and risk management systems related to financial reporting processes.

The full statement is available at https://ir.alk.net/financial-reporting/risk-management

Board composition

ESRS 2-Gov 1-21(a,b,d,e)

The Board of Directors consists of 11 non- executive members. Seven of the none- executive members, including the Chair and the Vice Chair, are up for re- election each year at the Annual General Meeting. Four members are employee- elected, each serving a four-year term (the last election was in 2023). No member of the Board of Management serves on the Board of Directors.

With two female members on the Board of Directors, ALK meets its target of having a minimum of two members (29%) of the underrepresented gender among the non- executive shareholder- elected members in accordance with section 107d of the Danish Financial Statements Act. Furthermore, three out of four employee- elected members are female.

At the Annual General Meeting in 2024, all shareholder- elected board members were re- elected. The Board of Directors has a preponderance of independent, shareholder- elected,

Meeting attendance and competency matrix

Anders Hedegaard (m)

Lene Skole (f)

Gitte Aabo (f)

Lars Holmqvist (m)

Jesper Høiland (m)

Bertil Lindmark (m)

Alan Main(m)

Katja Barnkob (f)1

Nanna Rassov Carlson (f)1

Lise Lund Mærkedahl (f)1

Johan Smedsrud (m)1

Role competencies: Chair & Vice Chair

Experience at CEO level Board experience from other companies

Composition of the Board of Directors

Independent members of the Board of Directors

Board gender diversity

Composition of the Executive Leadership Team1 and their direct reportsin management positions

Executive Leadership Team and their direct reports in management positions

members, as five board members (out of seven) in 2024 may be considered independent according to the definitions set by the Danish Committee on Corporate Governance.

All board members are presented on pages 33-34 of this annual report, while ALK’s Executive Leadership Team is presented on page 35. Four members of the Executive Leadership Team are registered with the Danish Business Authority and legally constitute ALK’s Board of Management.

Competency matrix for the Board of Directors

ESRS 2-GOV1-23(a, b); G1-GOV1-5(a, b)

The Board of Directors represents international business experience from management positions in a variety of industries, and particular regard is given to the members’ insight into the management and globalisation of R&D driven companies. The Board also has overall expertise in sustainability matters that are material to ALK and sustainability knowledge is integrated into board committees and the Board itself. External advice on specific sustainability topics is obtained, if needed.

To assess whether all of the necessary core competencies are adequately represented, each shareholder- elected member of the Board has been asked to identify the primary competencies they bring to the Board, in the context of ALK’s long- term strategy. Employee- elected members are not part of the competency assessment. For the Chair and Vice Chair, two additional competencies, specific to these roles, have been identified.

Governance recommendations

The Danish Committee on Corporate Governance has set out a series of recommendations on corporate governance which has been adopted by Nasdaq Copenhagen. ALK complies with all recommendations and the Board of Directors uses these recom -

mendations as inspiration for setting up structures, tasks, and procedures.

ALK accounts for its compliance with the recommendations in an annual ‘comply- or-explain’ review which is available at https://ir.alk.net/ corporate- governance.

Remuneration

Remuneration of the Board of Directors and the Board of Management is determined in accordance with ALK’s remuneration policy as adopted by the AGM in March 2024. The policy is prepared in accordance with sections 139 and 139a of the Danish Companies Act as well as items 4.1.1 - 4.1.6 of the latest Danish Corporate Governance Recommendations.

Highlights of the remuneration report

ESRS 2 – Gov 3; E1-GOV3-13

ALK’s remuneration report for the Board of Directors and the Board of Management provides an overview of remuneration components, actual remuneration in 2024, its development over the past years, and the individual shareholdings of members of the Board of Directors and Board of Management. All remuneration for the Board of Directors and Board of Management in 2024 followed the principles and framework outlined in ALK’s remuneration policy. The remuneration report for 2024 will be presented for an advisory vote at the AGM on 13 March 2025.

The report is prepared in accordance with section 139b of the Danish Companies Act and is available at https://ir.alk.net/corporate- governance.

Members of the Board of Directors each received a fixed annual fee, with the Vice Chair and Chair receiving double and triple the annual fee, respectively. Members also received an additional fee for serving as member or chair on the Board committees. The fees for serving on the Board and the Board committees remained unchanged in 2024.

The remuneration for the Board of Management consisted of both fixed pay elements (base salary and benefits) and variable pay elements in the form of short- term incentive (STI) and longterm incentive (LTI) plans. The programmes reward the attainment of pre- defined financial and non- financial targets linked to the company’s strategy. The STI and LTI plans are governed by ALK’s remuneration policy.

The remuneration policy is submitted for advisory approval at ALK's Annual General Meeting at least every four years. The remuneration policy allows for STI and LTI plans to include both financial and non- financial KPIs, including sustainability- related targets. The targets linked to the annual STI and LTI plans are approved each year by ALK’s Board of Directors. In accordance with the remuneration policy, ALK's Board of Directors does not participate in short or long- term incentive schemes linked to company results.

Short-term incentive scheme (STI)

The KPIs for the STI include sustainability targets accounting for 15% of pay to the CEO and 11% for the remainder of the Board of Management. The sustainability targets reward ALK's Board of Management for successfully preparing ALK for the CSRD and EU Taxonomy reporting and for getting science- based CO2 reduction targets approved. This supports ALK's ability to set additional sustainability targets in the future. The STI plan also rewards the achievement of gender balance in senior management and securing a high level of employee engagement.

Long-term incentive scheme (LTI)

Achievement of the LTI plan for 2022-2024 is linked to the fulfilment of both financial and sustainability targets with sustainability- related targets accounting for 10% of the plan for all members of the Board of Management. This is a grouped milestone that includes climate- related considerations. The LTI plan includes a previously established target linked to greenhouse gas (GHG) emission reduction, which does not align with

the Science Based Targets initiative (SBTi) target reported under Disclosure Requirement E1-4. It also includes targets for increasing the share of the underrepresented gender in management positions at VP and Senior Director level to 34% and on increasing the number of patients benefitting from ALK’s allergy products.

The variable pay elements were settled above target and reflect strong performance in the financial and non-financial KPIs defined for the STI and LTI plan. The general increase in base salary for members of the Board of Management was 3%, in line with the general increase for ALK employees in Denmark. There was no increase applied to the base salary for the CEO while the base salary for the CFO increased above the general level to align it more closely to market benchmarks.

Remuneration

1 Including former members of Board of Management and excluding sign-on and severance payments. For further information, please refer to the Remuneration Report 2024

Shareholder base

ALK aims to have a diversified shareholder base in terms of geography, investment profile, and time horizon with shareholders sharing the company’s vision and supporting its longterm strategy. To enable a fair valuation as well as regular trading of its shares, ALK provides relevant information on its strategy, goals, expectations, operations, performance, market development, R&D pipeline, and other matters of importance to the assessment of the share.

On 31 December 2024, ALK had 37,215 registered shareholders versus 39,766 at the end of 2023. The registered shareholders owned 97.8% of the share capital (97.3%). The vast majority of the largest registered shareholders were institutional investors, mainly from Denmark, other European countries, and North America. The international ownership was estimated at approximately 28% (28%), representing 46% of the free float of the B shares, excluding the Lundbeck Foundation’s holding and treasury shares.

Return to shareholders

ALK is listed on the Nasdaq Copenhagen stock exchange under the ticker symbol ALK B. At year- end, the closing price of ALK B shares was DKK 159 compared to DKK 101 at the end of 2023, an increase of 57%. The total market value of ALK’s B shares, excluding treasury shares, was DKK 32.0 billion (20.3) at year- end.

Dividend and capital structure

The Board of Directors considers that ALK’s financial resources, including credit facilities, continue to form a sufficient basis for executing ALK’s strategy and funding investments. At the end of 2024, net interest- bearing debt (NIBD) amounted to DKK 598 million and the Net Debt to EBITDA ratio stood at 0.4 (0.3), wellbelow ALK’s long- term target of a maximum of two.

Shareholder overview as at 31 December 2024

Board of Directors and Board of Management

1 This shareholder has reported to ALK that they held 5% or more of the shares on 31 December 2024.

2 To meet obligations to deliver shares under the management incentive programmes, ALK holds a number of its own shares. The holding was reduced in 2024 following the settlement of share option and performance share programmes

The ALK share in 2024 ALK OMXC25 (indexed) Pharma, biotech and life sciences (NBI-NAS, indexed)

To support investments in ALK’s new strategy, the Board of Directors is extending its recommendation that dividend payments be suspended until ALK’s cash flow further improves. Accordingly, the Board of Directors will propose to the AGM, that no dividends should be declared for 2024. The Board of Directors revisits the dividend policy and ALK’s capital structure on an ongoing basis.

Up to and including 15 March 2027, the Board of Directors is authorised to increase the share capital by up to DKK 11,141,196, with or without pre- emption rights for existing shareholders.

The Board of Directors is authorised for the period until 22 March 2028 to let the company acquire its own B shares for a nominal value of up to DKK 11,141,196. The consideration for such shares may not deviate by more than 10% from the official quoted price of the B shares on the date of acquisition.

Investor Relations

During 2024, ALK representatives participated in many individual meetings and briefing calls with analysts and investors as well as conferences and seminars targeting various audiences. ALK also hosted a well- attended Capital Markets Day in June 2024 where management presented ALK’s new strategy.

All regulated company announcements are available on ALK’s corporate website together with reports, presentations, recordings of telephone conferences, share price information, analysts’ estimates, and related information. Registered shareholders are encouraged to sign up on the InvestorPortal.

Find out more

Trading information and core data on ALK’s share: https://ir.alk.net/share-information

Contact Investor Relations

Per Plotnikof, Head of IR

Tel. +45 45747527

Financial calendar 2025

Annual General Meeting 13 March

Three- month

interim report (Q1) 6 May

Six- month interim report (Q2) 21 August

Nine- month interim report (Q3) 13 November

Data ethics

ALK processes data from clinical trials, research and development, employees, customer interactions, and pharmacovigilance. Recognising the importance of responsibly managing stakeholder data, ALK adheres to its publicly communicated data ethics policy. This policy ensures strict compliance with privacy regulations and best practices to safeguard data confidentiality, integrity, and availability.

ALK maintains transparency about how data is collected, processed, and used. Data is only used to expand scientific and medical understanding, ensure patient safety, improve products and services, and deliver appropriate treatments. The Board of Directors regularly assesses this policy, which applies to all ALK employees. Relevant business units manage day-to-day data ethics, integrating these principles into their operations. This report complies with section 99d of the Danish Financial Statements Act.

Board of Directors

Anders Hedegaard (1960, Danish, male)

Professional board member

Chair

Independent Board member since 20201

Chair of the Remuneration & Nomination Committee

Member of the Scientific Committee

Competencies

Lene Skole (1959, Danish, female)

TheLundbeckFoundation,CEO anddirectorshipsattwoothersubsidiaries

Vice Chair

Not independent Board member since 20141

Member of the Remuneration & Nomination Committee

Member of the Scientific Committee

Specific expertise within management and sales & marketing in international life science companies. Competencies

Experience in management, financial and economic expertise, experience in strategy and communication in international companies.

Gitte Aabo (1967, Danish, female)

Professional board member Independent Board member since 20211 Chair of the Audit Committee

Lars Holmqvist (1959, Swedish, male)

Professional board member

Not independent Board member since 20151

Member of the Audit Committee

Jesper Høiland (1960, Danish, male)

Strategicadviser,PharmaCoConsultApS

Independent Board member since 20231

Member of the Audit Committee

Competencies

Global leadership experience and comprehensive understanding of international management, finance, IT, and sales & marketing, as well as insights into building digital communities.

Competencies

Experience in management, finance, and sales & marketing in international life science companies, including med- tech and pharmaceutical businesses.

Directorships 2,3

Ellab, Chair and chair of the Remuneration Committee

Rodenstock Group, Germany: Member of the Advisory Board

Candela Medical, USA: Board adviser

Directorships 2,3

Ørsted A/S: Chair and chair of the Nomination & Remuneration Committee

Falck A/S 4: Vice Chair and member of the Remuneration and Nomination Committee

H. Lundbeck A/S 4: Vice Chair and member of the Remuneration & Nomination and Scientific Committees

Nordea Bank Abp, Finland: Vice Chair and member of the Audit Committee

Directorships 2,3

UNION therapeutics A/S: Board member

Tobii Dynavox: Chair GN Foundation: Chair

Directorships 2,3

Biovica International AB, Sweden: Chair and member of the Audit Committee

H. Lundbeck A/S: Board member and member of the Audit Committee

The Lundbeck Foundation: Board member and Chair of the Investment Committee

Vitrolife AB, Sweden: Board member and member of the Audit Committee

Competencies 2

Management and commercial experience from 35 years with global pharmaceutical companies, including roles at Ascendis Pharma, Inc., Radius Health, Inc. and Novo Nordisk Inc., USA. Unique expertise in establishing and expanding commercial activities in North America, including product launches.

Directorships 2,3

SciBase AB, Stockholm: Chair Flen Health SA, Luxemburg: Director 1

Bertil Lindmark (1955, Swedish, male)

ChiefMedicalOfficer, VicorePharmaHoldingAB

Independent Board member since 20211 Chair of the Scientific Committee

Competencies 2

More than 30 years' experience of global executive R&D leadership in pharmaceuticals (Astra, AstraZeneca, Almirall) and biotech (ASLAN Pharmaceuticals, eTheRNA Immunotherapies, Galecto Inc.). Experience in multi therapy area and bringingblockbuster therapeutics to market globally. Served on the Research Board of AstraZeneca. Participated in a range of IPOs, acquisitions, and debt- financing activities.

Directorships 2,3

Aqilion AB, Sweden: Chair of the Board and member of the Remuneration Committee

Cellevate, Sweden: Director of the Board

Alan Main (1963, British, male)

SeniorAdviser, CansonCapitalPartners

Independent Board member since 20221

Member of the Remuneration & Nomination Committee

Competencies 2

More than 30 years of experience from the consumer healthcare industry, including roles in Sanofi, Bayer and Roche.

Katja Barnkob (1969, Danish, female)

SeniorProjectDirector,GlobalClinical Development,ALK-Abello A/S

Board member since 2011

Employee- elected

Nanna Rassov Carlson (1976, Danish, female)

SeniorManager,QARelease, ALK-Abelló A/S

Board member since 2019 Employee- elected

Lise Lund Mærkedahl (1967, Danish, female)

ProjectDirector,GlobalResearch, ALK-Abelló A/S

Board member since 2023

Employee- elected

Johan Smedsrud (1972, Danish, male)

SeniorMaintenanceSupporter, Process&ProductionSupport, ALK-Abelló A/S

Board member since 2019

Employee- elected

Competencies 2

Experience in project management of global drug development projects in the pharmaceutical industry.

Directorships 2,3

The Lundbeck Foundation: Board member, employee-elected 1

Competencies 2

Expertise in production and release of ALK’s active pharmaceutical ingredients for sublingual immunotherapy products.

Competencies 2

Experience in the development of new vaccines, project management of drug discovery projects, and most recently governance of data digitalisation and AI projects.

Competencies 2

Experience in HVAC systems, cleanroom testing, utensil washing and sterilisation for the pharmaceutical industry.

Executive Leadership Team

Peter Halling (1977, Danish)

Board of Management

President & CEO

Claus Steensen Sølje (1972, Danish)

Board of Management

Executive Vice President & CFO

Søren Niegel (1971, Danish)

Board of Management

Executive Vice President, Commercial Operations

Henriette Mersebach (1971, Danish)

Board of Management

Executive Vice President, Research & Development

Christian G. Houghton (1964, Danish)

Executive Leadership Team

Executive Vice President, Product Supply

Jan Engel Jensen (1966, Danish)

Lika Thiesen (1975, Danish)

Jacob Glenting (1974, Danish)

Executive Leadership Team

Senior Vice President, Global Quality

Competencies

Executive management

experience with a strong commercial and strategic background from pharmaceutical and biotech industries.

Peter Halling holds a master's degree in International Marketing & Management from Copenhagen Business School from 2003.

Competencies

International experience in management, finance, and other CFO-related areas in the pharmaceutical/med tech industry.

Claus Steensen Sølje holds a master's degree in Economics from the University of Copenhagen from 1999.

Competencies

Experience in management as well as global production and sales & marketing within the pharmaceutical industry.

Søren Niegel holds a master's degree in Economics and Business Administration from Copenhagen Business School from 1996.

Competencies

Experience in management, innovation, and research & development in the pharmaceutical industry.

Henriette Mersebach holds a master's degree in Medicine from 1998 and a PhD in Medicine from 2004.

Competencies

Experience within development of biopharmaceutical products and specialised in CMC development and supply operations.

Christian G. Houghton holds a master's degree in chemical engineering from DTU – Technical University of Denmark.

Competencies

Experience within quality assurance from the medical and pharmaceutical industry.

Jan Engel Jensen holds bachelor’s degrees in Production Management, Business Administration, and a master's degree in Quality Management in Scientific R&D.

Executive Leadership Team

Executive Vice President, Global People & Organisation

Competencies

Experience in organisational change, people strategy and HR programme implementation from different stocklisted and equity-owned companies.

Lika Thiesen holds a master's degree and a PhD in Public Administration from Northern Illinois University, USA.

Executive Leadership Team

Senior Vice President, Global Strategy & Corporate Development

Competencies

Experience in pharmaceutical commercialisation, research & development, marketing, business development, strategy, and general management.

Jacob Glenting holds a master's degree in biochemistry, and a PhD in vaccine development.

Directorships

The Danish Chamber of Commerce

Sonion A/S: Board member and member of the Remuneration & Nomination Committee

UV Medico A/S: Board member Directorships

Appointed Chair of the Danish Pharmacopoeia Commission, Danish Medicines Agency

Sustainability statement

General disclosures

Basis for preparation

ESRS 2-BP1

General basis for preparation of the sustainability statement

ALK has aligned its reporting with the European Corporate Sustainability Reporting Directive (CSRD), which is applicable to ALK from 1 January 2024, and Article 8 of the Taxonomy Regulation (EU) 2020/852. The sustainability statement has been prepared on a consolidated basis, covering the entire ALK group and subsidiaries, in line with the financial statements.

The sustainability statement is based on a Double Materiality Assessment (DMA) covering ALK's own operation as well as its upstream and downstream value chain. Policies, actions and targets also cover the value chain when related to its impacts, risks and opportunities. No information on intellectual property or know- how has been omitted.

For a detailed description of the scope, methodology and assumptions behind the DMA process, see ESRS 2 IRO-1 on pages 41-43.

ESRS 2-BP2

Disclosures in relation to specific circumstances

Time horizons

ALK defines the medium- term time horizon as the period ranging from over 1 to 3 years, and long- term as any timespan beyond 3 years. The time horizons are based on ALK’s Enterprise Risk Management framework.

Sources of estimation and outcome uncertainty

The use of estimates for metrics, including data from the value chain, is outlined in the relevant accounting policies.

ALK identified the following estimates, assumptions and judgements as significant for the sustainability statement:

• "Purchased goods & services" (scope 3, category 1) greenhouse gas emissions ( see E1-6 on page 54)

• "Water consumption for irrigation" ( see E3-4 on page 60)

• "Gender pay gap" ( see S1-16 on page 78)

• "Number of patients in treatment" ( see S4-5 on page 85).

Disclosures stemming from other legislation or generally accepted sustainability reporting pronouncements

The sustainability statement has been prepared in compliance with Section 99a of the Danish Financial Statements Act, in accordance with the ESRS. Information prepared in compliance with Section 107d of the Danish Financial Statements Act has been included in the management review as well as in S1-1 on page 75.

Incorporation by reference

See appendix "Incorporation by reference" on pages 92-93 IBR for the list of datapoints incorporated by reference and phased-in, according to ESRS 2-BP2-16.

Sustainability governance

ESRS 2-GOV1

The role of the administrative, management and supervisory bodies

ESRS 2-GOV2

Information provided to, and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies

ALK's governance model ensures that sustainability is systematically managed and integrated into decision- making and business strategy. It promotes long- term value creation while addressing societal and environmental challenges. The model defines clear roles and responsibilities and provides a framework for setting and monitoring sustainability targets.

Information about the composition, diversity, expertise and business conduct-related role of the administrative, management and supervisory bodies, according to ESRS 2-GOV1-21(a, b, d, e), ESRS 2-GOV1-23(a, b) and G1-GOV1-5(a, b), is incorporated by reference to the section "Corporate governance" of Corporate matters on pages 28-29.

Information about experience of Board of Directors' members relevant to ALK's sectors, products and geographic locations, according to ESRS 2-GOV1-21(c), is incorporated by reference to the section "Board of Directors" of Corporate matters on pages 33-34.

ALK’s Board of Directors bears the overall responsibility for ALK’s sustainability strategy including impacts, risks, opportunities and targets. The Audit Committee oversees sustainability disclosures, processes, controls and assurance, and the Remuneration Committee oversees sustainability- related remuneration.

ALK's sustainability governance model

Board of Directors

Overall responsible for ALK’s sustainability strategy and targets

Audit Committee

Oversee sustainability disclosures, processes, controls and assurance

Remuneration Committee

Oversee sustainability-related remuneration

Executive Leadership Team

Approve all sustainability-related policies and strategy

Sustainability Committee

Oversee legal reporting requirements within sustainability. Make recommendations to Executive Leadership Team on matters with strategic impact on the global organisation

Corporate Finance Department

Responsible for accounting policies, internal controls, framework and guidelines for data processes and controls.

Sustainability Department

Responsible for the sustainability strategy implementation. Ensure compliance with legal reporting requirements as well as reporting to internal and external stakeholders

Corporate functions

Responsible for daily execution of strategic activities as well as collection of sustainability data

The Executive Leadership Team (ELT) is responsible for approval of all sustainability- related policies and strategy. The ELT reports to the Board of Directors.

The Sustainability Committee, led by the Executive Vice President for People and Organisation, oversees legal reporting requirements within sustainability and makes recommendations to the ELT on matters with strategic impact on the global organisation. The mandate of the Sustainability Committee is described in ALK’s sustainability committee charter. In 2024, the Sustainability Committee focused on ensuring that ALK meets ESRS and EU Taxonomy reporting requirements. Meeting quarterly, the committee will in future also focus on implementing further due diligence programmes in the value chain and evaluating the effectiveness of policies, actions, metrics, and targets addressing impacts, risks and opportunities (IROs).

The Corporate Finance Department is responsible for accounting policies, internal controls, frameworks and guidelines for data processes and controls.

The Sustainability Department is responsible for the sustainability strategy implementation, ensuring compliance with legal reporting requirements, and reporting to internal and external stakeholders.

The corporate functions are responsible for day-to-day execution of strategic activities as well as collection of sustainability data.

ALK's IROs are integral to the company strategy. Risks identified in the DMA are incorporated into the ERM process. However, as DMA risks are gross risks and ERM includes risk mitigation, the methodologies cannot be fully aligned. The Risk Committee, chaired by the Chief Finance Officer, informs the Board of Directors about ERM risks.

ESRS 2-GOV3

Integration of sustainability- related performance in incentive schemes

Information about the integration of sustainability-related performance in incentive schemes, according to ESRS 2-GOV3 and E1-GOV3-13, is incorporated by reference to the section "Corporate governance" of Corporate matters on page 30.

ESRS 2-GOV5

Risk

management and internal controls over sustainability reporting

The Sustainability Department is responsible for preparing the sustainability statement, overseeing the DMA process, and advising on data collection. The Corporate Finance Department collaborates closely on numeric data collection. Data is gathered quarterly for ongoing progress tracking and verification, with all information stored centrally.

Key challenges in creating unified sustainability disclosures across various business units and locations include human error and data misalignment. To minimise reporting errors, internal controls and standard operating procedures for critical metrics have been established based on a risk assessment, and a four- eye principle is applied. The Sustainability Committee, the ELT and the Audit Committee receive quarterly updates on progress on the sustainability statement. All data comply with the principles outlined by the ESRS.

ESRS 2-GOV4

Statement on due diligence

The statement on due diligence, according to ESRS 2-GOV4-32, is incorporated by reference to the appendix "Core elements of due diligence" on pages 94-95.

Stakeholder engagement

ESRS 2-SBM1

Strategy, business model and value chain

Information about ALK's key elements of general strategy, significant groups of products and services and significant markets and customer groups, according to ESRS 2-SBM1-40(a.i, a.ii, f) is incorporated by reference to the section "Sales and market trends" of Financial performance on page 19.

Description of sustainability-related goals in terms of significant groups of products and services, customer categories, geographical areas and relationships with stakeholders, according to ESRS 2-SBM1-40(e) is incorporated by reference to the section "Introduction to Allergy+" of Business and strategy on page 9.

Strategy elements that relate to or impact sustainability matters, including the main challenges ahead, critical solutions and projects to be put in place, according to ESRS 2-SBM1-40(g) are incorporated by reference to the section "Expanding the addressable markets" of Business and strategy on pages 16-17.

Headcount of employees by geographical areas, according to ESRS 2-SBM1-40(a.iii) is incorporated by reference to the section "ALK at a glance" of the Introduction on page 5.

The business model, according to ESRS 2-SBM1-42(a,b,c) is incorporated by reference to the section "Business model" of the Introduction on page 6.

ESRS 2-SBM2

Interests and views of stakeholders

Key stakeholders How engagement is organised

Employees

• Engagement survey

• Employee- elected board members

• Workers’ councils

• Employee development dialogues

• Employee meetings

Consumers and general public

Healthcare professionals

• Various digital media platforms

• Consumer websites, apps, email flows, etc.

• Scientific webinars and symposia, scientific publications, clinical trial data sharing, etc.

Purpose of engagement

• Strategic alignment

• Understanding employees' perceptions and experiences

• Defining training needs

• Creating awareness around allergies, symptoms, impact on quality of life and treatment options, etc.

• Awareness of allergy, including burden of disease and benefit-risk of available allergy treatment strategies

Examples of outcomes

• Human resources strategy

• Improvement action plans

• Training programmes

• Employee information

• Improved awareness among consumers relating to allergies including symptoms, impact on quality of life, treatment options, etc.

• Increased adoption and usage of evidence-based disease modifying allergy treatments

• Correct identification and diagnosis of people with allergy

• Clinical practice optimisation

Suppliers and contract manufacturers

• Contract negotiations

• Third- party Code of Conduct implementation

• Supplier meetings and correspondence

Investors and shareholders

Regulatory authorities

• Interim and annual reports, company announcements, websites, presentations, meetings and events

• ESG ratings

• Continuous interaction

• Compliance with ALK's Thirdparty Code of Conduct

• Commitment to Science-Based Targets initiative

• Enhancing transparency

• Understanding expectations to sustainability

• Attracting responsible investors

• Compliance with regulations, safety and efficacy of medicines

• Reliable long- term partnerships

• Adherence to ALK’s business conduct standards and collaborative decarbonisation progression

• Strong reputation

• Access to capital

• Fair valuation

• Compliance and market access

Active engagement with stakeholders is a fundamental aspect of ALK’s sustainability strategy and is integrated in the overall strategy. The interaction shapes the understanding of material issues and supports the initiatives outlined in the sustainability roadmap. Internal engagement occurs across a broad range of functions including but not limited to finance, legal, environment, health and safety, procurement, people and organisation, R&D, commercial and the ELT.

The interests and views of stakeholder groups inform ALK's Allergy+ strategy and business model, including but not limited to:

• Results from regular engagement with employees through the workers’ councils and engagement survey, integrated into the People and Organisation strategy and processes defined in the Cultivate pillar.

• ALK’s ongoing interaction with representatives of healthcare professionals, patients and regulatory authorities, informing the Innovate and Focus pillars.

• Engagement with suppliers and contract manufacturers, informing the Optimise pillar.

• Engagement with investors and shareholders, handled though the Capital Markets Day, the Annual General Meeting and at meetings requested by larger investors on specific sustainability- related topics.

The stakeholder engagement during the materiality assessment process is described under ESRS 2-IRO1 on pages 41-43.

ALK’s overall business model has not been amended in response to engagement with its stakeholders; however, ALK’s strategy was updated in 2024 and the Allergy+ strategy was launched. The administrative, management and supervisory bodies are informed about the views and interests of affected stakeholders through the sustainability strategy updates.

Materiality assessment process

ESRS 2-IRO1

Description of the process to identify and assess material impacts, risks and opportunities

In 2024, ALK updated its initial Double Materiality Assessment (DMA) from 2023 in a shortened review process, focusing on implementing regulatory changes as well as engaging with stakeholders to check for significant changes to the business model or value chain, or new sustainability- related information gathered throughout the year.

Implementing regulatory changes

Finalised European Sustainability Reporting Standards (ESRS) standards and European Financial Reporting Advisory Group (EFRAG) guidance published since 2023 led to adjustments to the DMA baseline. The main adjustments to the DMA 2023 include:

• A revision of initially identified positive impacts: positive impacts have only been deemed justified if they are businessmodel-related or if ALK performed well beyond standards.

• An update of the DMA workbook to ensure ESRS-aligned scoring, based on the finalised sustainability matter list of the ESRS in inherent (gross) format.

• A greater focus on capturing value-chain-related impacts, risks and opportunities.

Identifying sustainability matters

The initial phase focused on evaluating ALK's activities and business relationships, value chain and affected stakeholders, in order to identify relevant sustainability matters, as outlined in ESRS 1-AR16. ALK has used internal documents and representative internal resources as sources to identify sustaina -

bility matters. As far as possible, datapoints were triangulated across sources.

Parts of ALK’s value chain were covered more extensively due to their large potential impact and the nature of ALK’s business. External sources have been used to provide input on Environment, Social and Governance (ESG) issues with a heightened risk of adverse impacts. Furthermore, Sustainability Accounting Standards Board (SASB) publications for the biotech and pharmaceuticals sector were reviewed to ensure an industryspecific viewpoint focussing especially on the potential adverse impacts on the end- users.

Stakeholder engagement

For the DMA review, ALK engaged with internal subject- matter experts. These representatives covered the views and interests of affected stakeholders, including suppliers, end- users, employees and nature, ensuring that the scope encompassed the entire organisation. The unique nature of pharmaceuticals and the extensive regulation of the sector made their integration significant for ALK.

ALK conducted a human rights risk assessment as part of its DMA, identifying impacts from a human rights perspective (including labour rights). Insights were drawn from the engagement survey and consultations with relevant stakeholders. Relevant impacts were translated into corresponding risks or opportunities and mapped to ALK’s strategic functional roadmaps.

Climate- related impacts, risks and opportunities

Climate-related impacts, risks and opportunities (IROs) were considered as part of the DMA process related to the sustainability topics of climate change mitigation and climate change adaptation. However, ALK has not yet undertaken a climate-related scenario analysis to inform the identification and assessment of physical risks and transition risks and opportunities over the short, medium or long term. As a result, ALK has not yet included a climaterelated scenario analysis in the resilience analysis of its strategy and business model.

The scope, methodology and assumptions for greenhouse gas emissions are described in detail in the accounting policies on pages 71-72.

Pollution- related impacts, risks and opportunities

As part of the DMA process, stakeholder representatives were consulted to identify and assess pollution- related impacts. Sitespecific data was collected as a part of the assessment. All production sites purchase substances of concern, therefore they are all deemed material for the pollution-related impacts ( see accounting policies for list of the sites on page 71).

Water and marine resources- related impacts, risks and opportunities

The World Wildlife Fund (WWF) Water Risk Filter was used to identify material impacts related to water and marine resources at ALK's production sites. Potential negative impacts linked to water- scarce regions were also identified and assessed using the Aqueduct Water Risk Atlas tool from the World Resources Institute (WRI). Internal stakeholder representatives identified and assessed impacts, in ALK's own operations and value chain. ALK has not conducted consultations directly with affected communities.

Biodiversity and ecosystem- related impacts, risks and opportunities

As part of the DMA, a review was conducted to determine which sites should be included in the evaluation of potential and actual biodiversity and ecosystem IROs. This review focused on filtering sites involved in farming processes, as they were deemed to have the most significant potential impact on biodiversity. The review concluded that, after applying this filter, only one site – Post Falls (USA) – met the criteria. This site met the materiality threshold and was thus deemed material in relation to biodiversity impacts.

To identify ALK's actual and potential impacts on biodiversity and ecosystems, ALK has conducted an assessment using the WWF Biodiversity Risk Filter. The analysis

followed the WWF technical guide. No transition or physical risks, including systemic risks and opportunities were identified using the WWF Biodiversity Risk Filter.

Engagement with stakeholder representatives was also used to identify and assess impacts at the Post Falls site, particularly from cultivation and collection of allergenic source materials.

ALK's only material site, Post Falls (USA), is not located in or near biodiversity-sensitive areas. ALK has not found it necessary to implement biodiversity mitigation measures.

Resource use and circular economy- related impacts, risks and opportunities

As part of the DMA process, stakeholder representatives were consulted to identify and assess impacts related to resource use and circular economy. Site- specific data was collected as a part of the assessment. All production sites generate waste, therefore they are all deemed material for the related impacts ( see accounting policies for list of the sites on page 71).

Business conduct- related impacts, risks and opportunities

For business-conduct-related IROs, an industry and geographical perspective was applied.

Materiality

scoring approach

The scoring methodology and criteria used in the DMA were defined in accordance with the requirements in ESRS 1, applying the principle of double materiality which comprises:

Impact materiality: Scale, scope, irremediability, and likelihood of impacts (based on whether an impact is positive/negative and actual/potential).

The threshold for human rights- related impacts was lowered based on ESRS 1-45 requirements.

Financial materiality: Financial magnitude of risk/opportunity, likelihood, and the nature of the financial effect.

The threshold applied for the financial effect scale is consistent with the materiality threshold in ALK's Enterprise Risk Management (ERM) framework.

Internal stakeholders who identified the risks and opportunities assessed their magnitude and likelihood to the best of their knowledge.

All IROs were assessed and scored at a gross level. A sustainability matter was deemed material if at least one IRO was above the threshold, indicating either impact materiality or financial materiality, or both. Nonmaterial sustainability matters were those where no IRO was identified and/or all IROs were found to fall below these thresholds.

The IROs and their scoring were evaluated and finalised at a workshop with the stakeholder representatives.

In the initial 2023 DMA, some topics were easily deemed material, based on ALK’s industry and business model. ALK focused its efforts on assessing the materiality of matters with greater scoring uncertainty. Special attention was given to sustainability matters with no identified IRO to ensure that no significant IROs were overlooked and the assessment accurately reflected ALK’s business.

The 2024 DMA result was presented and approved by the ELT, the Audit Committee and the Board of Directors.

Decision-making and internal controls

In the DMA, there were three key decision points:

Key decision point Decision making Internal control procedures

Identification of internal stakeholders

The identification was carried out by ALK’s sustainability director

Appropriateness of thresholds

ALK’s sustainability director and senior management

Scoring of IROs Scoring of IROs was conducted by internal stakeholders

• Check that all sustainability matters were covered by internal stakeholders.

• Check that all sustainability matters had identified IROs throughout the stakeholder engagement process. If none were identified, a sanity check with key stakeholders was performed, to see that this was sensible in light of the nature of the business.

• Financial materiality threshold was set based on ERM thresholds.

• Impact materiality threshold was set based on key human rights-related considerations and following the ESRS methodology.

• Thresholds were revisited in 2024 at a workshop held by senior management to reflect on the fit of the complete DMA result to key stakeholder considerations.

• Scoring included a description of rationality for each IRO.

• Scoring was based on ESRS guidelines with a consistent method.

• ERM information was utilised where relevant.

The process to identify, assess and manage sustainability impacts and risk including the use of tools is separated from the overall risk management process. Some members of the Risk Committee are also members of the Sustainability Committee to ensure that sustainability risks are also reflected in the ERM risk overview where relevant.

Future steps: integration, monitoring, and review

The process was guided by ALK's sustainability- related due diligence, including internal policy reviews, the whistleblower channel, and ERM. The DMA assesses risks and opportunities in relation to sustainability matters from a sustainability perspective and assesses the gross risk from these. ALK’s ERM process is separated from the DMA process and includes risk mitigation in the scoring. ALK will review the DMA on an annual basis, considering trends, business context, key supplier changes, and regulations. This shortened review will be conducted annually

unless significant changes in the business model, value chain, or methodology are detected.

Output from the materiality assessment

The results of ALK’s 2024 DMA can be seen below. There were no changes in materiality at the topical level compared to the previous reporting year; however, some sub- topics were moved from double material to financial or impact materiality, while others became non- material after the 2024 DMA review.

In total, 178 IROs were identified and evaluated during the DMA. Of those, 97 impacts were identified, of which 30 were deemed material. 81 risks and opportunities were identified, of which 8 were deemed material. The IROs were consolidated and mapped to 22 material sustainability matters. Once completed, validated and approved, all material disclosure requirements and datapoints were further assessed to determine the final scope of reporting disclosures.

Material impacts, risks and opportunities

ESRS 2-SBM3

Material impacts, risks and opportunities and their interaction with strategy and business model

The material IROs identified during the DMA are described and presented below and alongside the topical standards:

E1 - Climate change, on pages 49-55

E2 - Pollution, on pages 56-57

E3 - Water and marine resources, on pages 58-60

E4 - Biodiversity and ecosystems, on pages 61-62

E5 - Resource use and circular economy, on pages 63-66

S1 - Own workforce, on pages 74-80

S2 - Workers in the value chain, on pages 81-82

S4 - Consumers and end- users, on pages 83-85

G1 - Business conduct, on pages 87-90.

Material impacts, risks and opportunities

E1 – Climate change

Emissions from own operations

ALK generates greenhouse gas (GHG) emissions through its direct operations (scope 1) and purchased energy (scope 2). These emissions contribute to climate change.

negative impact

Use of refrigerants contributing to climate change

ALK uses refrigerants to cool raw materials, pharmaceuticals and production areas. If released, these refrigerants are GHGs that contribute to climate change.

Value chain emissions

ALK's value chain generates GHG emissions from purchased goods and services, capital goods, upstream and downstream transportation & distribution, and business travel. These emissions contribute to climate change.

Climate change and respiratory health1

Climate change threatens respiratory health by extending pollen seasons, increasing airborne allergens and promoting mould growth. This represents a market opportunity for ALK.

negative impact

negative impact

tunity

E2 – Pollution

Usage of REACH substances in production

ALK uses chemicals regulated by the Registration, Evaluation, Authorisation, and Restriction of Chemicals (REACH) Regulation, including Substances of Concern with potential environmental and health impacts.

E3 – Water and marine resources

Water consumption in production facilities

The consumption of water in production facilities can contribute to local water scarcity, impacting availability and increasing water costs for surrounding communities. Reduced water availability may also impact local ecosystems and agriculture, and increase wildfire risks.

Usage of water in operations in waterscarce regions

ALK’s Madrid (Spain) production site operates in a high-water stress area. Climate change and periodic droughts could further constrain water resources, potentially affecting the local population.

Material impacts, risks and opportunities

E4 – Biodiversity and ecosystems

Hornets and wasps eliminated for venom harvesting

Wasp and hornet nests are removed to collect venom for the active pharmaceutical ingredients in ALK’s medicinal products. Wasps and hornets are eliminated during the harvesting process.

negative impact

E5 – Resource use and circular economy

Use of non- recycled paper, single- use aluminium and single- use plastic

The use of single-use plastic, aluminium bottles and non-recycled paper in production have environmental impacts during manufacturing and disposal.

negative impact

Pharmaceutical standards on products leaving minimal leeway for circularity in product design

The pharmaceutical industry is highly regulated, requiring high standards for quality and sterility, which results in plastic waste and limited possibilities for circularity.

negative impact

Operational waste partly disposed in landfills

Some of ALK’s operational waste goes to landfills. The impact varies depending on local waste management infrastructure and regional regulations. Limited recycling facilities in some areas hinder material recovery.

End of life of products

In some countries, limited recycling infrastructure for end-of-life of medical products hinders the recovery of reusable materials and recyclable packaging.

negative impact

negative impact

Material impacts, risks and opportunities

S1 – Own workforce

Decline in employee competencies due to inadequate skill upgrading

The skills of ALK employees decline over time as business develops and new competences are required. Individual development plans linked to job content and performance goals are required to promote continuous learning and skillbuilding, enhancing the ability for employees to meet job expectations and maintaining employability.

Employee retention, attraction and development challenges

ALK relies on the retention and attraction of skilled employees to stay competitive and achieve its business strategy. The healthcare industry in general faces persistent high demand for skilled labour in key locations.

Injuries due to workplace accidents in farming and production

Employees working in farming and production are at increased risk of workplace accidents. Workplace accidents can cause physical harm, affect mental well-being, and impact employee morale and productivity.

S2 – Workers in the value chain

Health- and safety-related incidents involving workers in the value chain

Workers across the value chain can encounter health and safety incidents, especially workers exposed to hazardous substances, transportation workers, and workers handling hazardous waste.

Material impacts, risks and opportunities

S4 – Consumers and end- users

Allergy treatment

ALK’s allergy treatments significantly improve patients' quality of life and personal wellbeing by addressing a wide range of allergies, including potentially life-threatening conditions like anaphylaxis and insect venom reactions.

Barriers to access

Allergy treatment must be prescribed by a healthcare professional, and is often not prioritized by healthcare systems, creating barriers for patients. Treatments are typically affordable through public or private insurance, but high costs can limit access for uninsured or low-income individuals.

Patient safety

Allergy treatments are effective in most cases but not all. If treatment is ineffective, limited alternatives leave individuals without potential benefits, directly impacting their well-being and safety.

Climate change and respiratory health1

positive impact

impact

G1 – Business Conduct

Animal welfare

ALK conducts animal testing to ensure its medicines are safe and effective, using animals only when alternative models are insufficient. Regular experiments involve allergen injections on mice in internal R&D facilities. The negative impacts include injections, captivity and euthanasia.

Potential bribery of healthcare professionals

The pharmaceutical industry, including ALK, faces bribery and corruption risks, especially in interactions with healthcare professionals. The main risk is potential bribery to boost sales which could lead to significant legal, reputational, and financial repercussions.

impact

negative impact

Climate change threatens respiratory health by extending pollen seasons, increasing airborne allergens, and promoting mould growth. This represents a market opportunity for ALK. Opportunity

ESRS 2-IRO2

Disclosure Requirements in ESRS covered by the undertaking’s sustainability statement Thresholds used for the DMA process are described in ESRS 2-IRO1 on page 42.

The content index of ESRS disclosure requirements and the list of datapoints that derive from other EU legislation, according to ESRS 2-IRO2-56, are incorporated by reference to the appendices "Content index of ESRS disclosure requirements", on pages 96-98, and "List of datapoints that derive from other EU legislation", on pages 99-105.

Environmental information E1 Climate change

Strategy

58

61

63

67

71

E1-1

Transition plan for climate change mitigation

In January 2024, the Science Based Targets initiative (SBTi) validated and approved ALK's absolute CO2 reduction targets. The targets align with the latest climate science to achieve the Paris Agreement goals, limiting global warming to 1.5°C. While changes to ALK's business model will not be necessary, specific actions will be implemented following different decarbonisation levers.

Decarbonisation levers

ALK's transition plan is focused on reducing carbon emissions from its own operations. This is achieved through the following levers:

• Transitioning towards renewable energy,

• Electrifying boilers and the company vehicle fleet,

• Substituting refrigerant chemicals in coolers,

• Implementing energy efficiency measures.

Further details on decarbonisation levers and climate change mitigation actions undertaken in 2024 are provided in E1-3 on page 51.

ALK recognises the presence of certain locked- in emissions and has considered them during target setting and reduction action planning. These emissions do not jeopardise the attainment of the greenhouse gas (GHG) emission reduction targets.

Embedded in strategy

The transition plan is embedded in ALK's strategy and funded through the annual business and financial planning process. It has been approved by ALK’s Investment Portfolio and Sustainability committees. The transition plan requires investments, which are aligned with ALK's financial planning. In particular, the electrification of boilers demands CapEx investments, and is reported as a taxonomy-eligible activity.

ALK has not claimed alignment of its economic activities with delegated regulations on climate adaptation or mitigation under the Taxonomy Regulation ( see "EU taxonomy" on page 67). However, efforts will be made to align activities where possible. ALK is not excluded from EU Paris-Aligned Benchmarks.

ALK's commitment to reducing its GHG emissions is strengthened by sustainability-related incentives in the remuneration schemes for the Executive Leadership Team. This incentivising of executives results in a more urgent drive for decarbonisation-related processes.

ALK's short-term and long-term incentive schemes are presented in detail in the "Corporate governance" section of Corporate matters on page 30.

Impacts, risks and opportunities

E1-SBM3

Material impacts, risks and opportunities and their interaction with strategy and business model

ALK has not undertaken a climate-related scenario analysis or a resilience analysis. The materiality assessment described in ESRS 2-IRO1 on pages 41-43 identified the following climate change impacts. No material climate-related physical risks or climate-related transition risks were identified during the materiality assessment.

Impact

Emissions from own operations

ALK impacts the environment through the emission of GHG. These emissions result from ALK's direct operations (Scope 1) and purchased energy (Scope 2). In particular, ALK’s energy consumption is partially based on non- renewable sources, including natural gas.

This negative impact is located within ALK's own operations and occurs over the short, medium and long term. ALK has

committed to a science- based target to reduce its GHG emissions by 42% by 2030. As part of its GHG emission reduction plan, ALK is taking steps to transition to renewable energy and to improve energy use.

Impact

Use of refrigerants contributing to climate change

ALK uses refrigerants as cooling agents in the storage of raw materials and pharmaceuticals and for cooling production areas. While these refrigerants are not ozone- depleting, they are classified as greenhouse gases (GHGs) and contribute to climate change if released into the atmosphere. Their role in supporting operational processes highlights their importance while also presenting potential environmental risks. This represents an actual negative impact that occurs in ALK's own operations over the short, medium and long term, as a result of its own activities.

Impact

Value chain emissions

ALK's value chain represents 93% of GHG emissions, mostly due to the manufacture and provision of purchased goods and services. These emissions stemming from ALK's direct business relationships contribute to climate change. This negative impact is located within ALK's upstream and downstream value chain in the short, medium and long term. ALK has set a science-based target to ensure that suppliers representing 80% of its scope 3 emissions have science-based targets in place by 2028.

Opportunity

Climate change and respiratory health

Climate change directly threatens respiratory health by extending pollen seasons, increasing airborne allergens, promoting mould growth, and altering the distribution and abundance of allergenic plants. The increased length and severity of pollen seasons expand the potential market size for ALK, as more individuals suffer from prolonged and intensified allergy symptoms.

This long-term potential opportunity for ALK is described further in S4-SBM3 on page 84.

Impact, risk and opportunity management

E1-2

Policies related to climate change mitigation and adaptation

ALK is in the process of addressing the most significant categories of GHG emissions, including all of its scope 1 categories, as well as purchased goods and services and business travel in scope 3. As an example, this translates into local policy updates on company fleet and business travel.

As a result, ALK has not had the need for establishing a formal global policy related to climate change mitigation and adaptation, energy efficiency or renewable energy deployment.

E1-3

Actions and resources in relation to climate change policies

ALK has developed a roadmap out to 2030 to reduce its carbon emissions. While this plan is not linear, it has been developed through a mapping exercise and, overtime, takes account of the projected business growth of the company. ALK has prioritised investments in reducing the environmental impact of its own operations (Scope 1 and 2).

The achieved GHG emission reductions are described in E1-6 on pages 53-54.

ALK is addressing its climate change impacts and climate- related opportunity through the following decarbonisation levers and actions:

Transitioning towards renewable energy

ALK has been purchasing third-party audited Renewable Energy Certificates for electricity since 2019. These certificates cover 100% of ALK’s electricity consumption at production sites where direct renewable energy sourcing is not possible.

Operating expenditure (OpEx) is allocated on an ongoing basis to purchase the certificates. In 2024, this amounted to DKK 0.5 million ( see Income statement, on page 107 in the consolidated financial statements).

Electrifying boilers and the company vehicle

fleet

ALK is also reducing CO2 emissions by converting production boilers from natural gas to electricity. The replacement of a boiler in Hørsholm (Denmark) site was implemented in 2022. In 2024, ALK also initiated the replacement of a gas boiler in France, with daily operations expected to commence by 2026. The last boiler replacement will be initiated by 2028, with full implementation planned for 2030.

In 2024, ALK also continued the transition of the company fleet to electric vehicles, with an initial focus on the countries in Northern Europe where the infrastructure is well developed.

The electrification of boilers requires CapEx investments, which are accounted for in ALK's annual budget processes and have been approved by administrative, management, and supervisory bodies. In 2024, ALK allocated DKK 4 million in CapEx to support the implementation of the decarbonisation project for the boilers in France ( see note 3.2 in the consolidated financial statements, on page 123). The ability to implement the action does not depend on specific preconditions.

Substituting refrigerant chemicals in coolers

Starting in 2023, ALK has mapped all cooling systems and refrigerants, creating a timeline for substitution based on legal requirements, equipment lifecycle, and cost considerations. Any refrigerant replacement will prioritise options with a lower global warming potential.

To minimise the environmental risks associated with refrigerant use, ALK has initiated a cross departmental programme to better manage cooling systems and refrigerants. ALK is focusing on initiatives to improve monitoring, reporting, preventive maintenance and substitution, while maintaining operational efficiency.

Implementing energy efficiency measures

In 2023, ALK initiated energysaving measures, including installing LED lighting and sensor- controlled lighting systems, to reduce overall energy consumption. While the identification of further potential initiatives continues, the immediate large- scale activities have already been implemented.

ESRS E1

Metrics and targets

E1-4

Targets related to climate change mitigation and adaptation

ALK has set two targets related to climate change mitigation:

• reduce its absolute CO2 emissions by 42% between 2022 and 2030 in its own operations (market- based Scope 1 and Scope 2)

• have 80% of its emissions from suppliers with science- based targets by 2028 (Scope 3).

Those targets were approved by the Science Based Targets initiative in January 2024, and are compatible with limiting global warming to 1.5°C.

In 2022, ALK's scope 1 and 2 (market- based) accounted for 5,492 tCO2e, with scope 1 representing 90%. The boundaries of this target exclude ALK's sales offices, which account for less than 5% of its total emissions. The rest of the assumptions and methodologies align with the GHG emissions reporting disclosed under E1-6 on page 54.

The different decarbonisation levers are presented under E1-3 on page 51.

E1-6

Gross Scopes 1, 2, 3 and Total GHG emissions

Science- based targets

Scope 1+2 (production sites)

Total scope 1+2 (location- based)

scope 1+2 (market- based)

Scope 3

Scope 3 emissions from suppliers with science- based targets

1 The comparative figures for 2022 and 2023 have been updated to reflect the acquisition of ALK's production site in Plainville (USA) as well as collecting vehicles in Post Falls (USA). 2022 and 2023 figures are not covered by the Independent Auditor’s limited assurance report.

Emissions from scope 1 and 2 were 2% lower than the science-based target baseline (2022: 5,492 tonnes CO2eq ).

This reflects a slight decrease in direct energy consumption, mainly related to the reduction of natural gas consumption, due to the replacement of a gas boiler to run on electricity at Hørsholm (Denmark) production site.

Refrigerants were reduced due to an increased focus on systematic and preventive maintenance as well as closing of equipment where leaks have been identified.

Emissions from company fleet were reduced compared to 2023. This reflects ALK’s transition towards electric vehicles, which will be fully implemented in the coming years.

Scope 2 market-based reflects the purchase of renewable energy certificates for all sites.

ALK’s ambition to reduce GHG emissions by 42% by 2030 remains unchanged.

Over the coming years, investments in boilers which run on electricity rather than natural gas will make a major contribution to the CO2 reduction.

The share of suppliers with science-based targets increased to 37% (2023: 33) reflecting ALK’s continued efforts in engaging with its suppliers to implement CO2 emission targets compatible with limiting global warming to 1.5°C.

Total scope 1+2 (market-based)1 Tonnes CO 2eq

Scope 3 emissions from suppliers with science-based targets1

1 The comparative figures for 2022 and 2023 have been updated to reflect the acquisition of ALK's production site in Plainville (USA) as well as collecting vehicles in Post Falls (USA). 2022 and 2023 figures are not covered by the Independent Auditor’s limited assurance report.

The increase in total scope 3 to 74,506 tonnes (2023: 64,067) is primarily related to the increase of purchased goods and services as a result of the increased turnover. Business travel decreased to 2,626 tonnes (2023:4,615) reflecting the focus on reduced travelling across all functions implemented end of 2023.

1

1 and 2 market-based)

1 The comparative figures for 2023 have been updated to reflect the acquisition of ALK's production site in Plainville (USA) as well as collecting vehicles in Post Falls (USA). 2023 figures are not covered by the Independent Auditor’s limited assurance report.

The share of renewable sources in total energy consumption decreased due to more accurate documentation from energy providers. Since ALK's activities belong to a high climate impact sector, energy intensity is calculated on the total revenue. The decrease in intensity reflects the more efficient use of energy at the production sites.

E2 Pollution

Impacts, risks and opportunities

ESRS 2-SBM3

Material impacts, risks and opportunities and their interaction with strategy and business model

Impact

Usage of REACH substances in production ALK uses chemicals that fall within the scope of the Registration, Evaluation, Authorisation, and Restriction of Chemicals (REACH) Regulation. Substances of Concern (SoCs) are regulated on the basis of their potential environmental and health impacts. Some of these chemicals may also appear on restricted or phased- out lists, such as the Candidate List of Substances of Very High Concern (SVHCs), requiring careful management to ensure compliance with legal requirements. ALK recognises that the continued usage of such chemicals contributes to their commercialisation, which can result in broader environmental consequences if not properly controlled.

The use of REACH substances has a negative actual impact on the environment, which arises in ALK's own operations on the short, medium and long term. The production processes

requiring REACH- regulated chemicals reflect the ongoing challenge of balancing operational needs with regulatory compliance and environmental considerations. ALK has not yet formalised policies or targets on Substances of Concern or Substances of Very High Concern. However, the company ensures compliance with local regulations and REACH requirements for chemical use and handling in production.

Pollution of air, water, and soil is considered immaterial to ALK due to the very low levels of pollutants in its operations, with minimal impact on the environment or human health. The impacts and risks are deemed immaterial as they do not meet the threshold, and no risks or opportunities were identified for soil.

Location in the value chain Time horizon

E2 Pollution

Usage of REACH substances in production

Impact, risk and opportunity management

E2-1

Policies related to pollution

ALK ensures compliance with local regulations and REACH requirements for chemical use and handling in production, and relevant actions and resources are evaluated and allocated at the operational level as appropriate. As a result, ALK has not identified the need for a centralised global policy related to pollution that specifically addresses actions within the mitigation hierarchy related to pollution, such as pollution avoidance, reduction or restoration efforts where there has been pollution of air, water and soil.

The use of REACH-regulated chemicals highlights the shared responsibility among producers and users to minimise their potential impact on the environment and look at possible substitution. ALK acknowledges that the continued use of such chemicals contributes to their commercialisation, which can result in broader environmental consequences if not carefully managed.

E2-2

Actions and resources related to pollution

ALK is committed to maintaining compliance with the REACH regulation and local legislation and to responsibly manage the chemicals it uses. Initiatives are directed at ensuring safe handling, storage, and use of regulated chemicals on all production sites, with ongoing updates to data and processes as required by evolving regulations.

As part of its ongoing initiatives, ALK has worked in 2024 on mapping and establishing an overview of purchased quantities of Substances of Concern (SoCs) and their subset, Substances of Very High Concern (SVHCs), in its own operations ( see E2-5 on page 57). This initiative aims to improve visibility and understanding of the volume and use of these chemicals within the organisation, supporting compliance and informed analysis and decision-making. Since ALK does not yet have a global policy, it has not taken specific actions in 2024 to achieve pollution-related policy objectives.

Metrics and targets

E2-3

Targets related to pollution

ALK has passed all the latest Local Environmental Authorities’ requirements and inspections at all of its sites. However, since 2024 is the first year of global consolidated reporting of substances of concern, ALK has not set global targets for preventing and controlling air pollutants, emissions to water, soil pollution, substances of concern and substances of very high concern, beyond what is determined by local regulations.

Compliance with REACH-regulated chemicals standards highlights the challenge

of balancing operational needs with environmental and regulatory requirements. As phase-outs and restrictions are implemented, ALK remains flexible to ensure compliance and mitigate risks. The company is evaluating its approach and considering future targets to align with evolving sustainability priorities and regulatory expectations. ALK will focus on reducing substances of very high concern by implementing improvements in the processes at one of ALK’s material production sites.

E2-5

Substances of concern and substances of very high concern

Substances of concern and substances of very high concern Unit 2024

of concern procured

of very high concern procured

E3 Water and marine resources

Impacts, risks and opportunities

ESRS 2-SBM3

Material impacts, risks and opportunities and their interaction with strategy and business model

Impact

Water consumption in production facilities

ALK’s production facilities rely on the consumption of water, which is an important natural resource in many areas. Water usage can contribute to local water scarcity, potentially impacting availability and increasing water costs for surrounding communities. Reduced water availability may also affect the ability of the soil to support vegetation, impacting local ecosystems and agricultural activities. Prolonged dryness may also increase the potential for wildfires in certain areas.

This represents an actual negative impact on people and the environment, occurring in the short, medium and long term. To mitigate it, ALK monitors water use in its production facilities to ensure compliance with local legal regulation.

Impact

Usage of water in operations in water- scarce regions

ALK’s production site in Madrid (Spain) operates in an area of high-water stress. In this water-scarce region, the availability of water resources is increasingly constrained due to climate change and periodic droughts. As a pharmaceutical company ALK is prioritised in terms of water supply; however, the use of water in operations in such regions has a potential negative impact on the local population, who might face constraints in the use of water. This potential impact occurs over the short, medium and long term. ALK’s water consumption is monitored to ensure compliance with applicable regulations and minimise negative impacts on the local water basin.

E3 Water and marine resources

Impact, risk and opportunity management

E3-1

Policies related to water and marine resources

ALK monitors water use in its production facilities to ensure compliance with local wastewater discharge regulations and to minimise the impact on local water resources.

ALK does not have a formal global policy on water management, treatment, or pollution beyond local regulations. There are currently no policies in place to guide product and service design in addressing water-related challenges, nor are there commitments to decrease material water consumption in regions facing water risks. Addressing the water-related challenges could involve adopting advanced technologies, recycling wastewater, or optimising processes to minimise water use, all in line with the local legal authorities and the production of pharma products.

As sustainable oceans and seas is not deemed material, no related policy has been adopted.

ALK has not adopted a policy covering its Madrid (Spain) production site, located in an area of high-water stress. In 2024, the focus

has been on mapping ALK's impacts, risks and opportunities linked to water and marine resources. In the coming years, the company will consider the potential adoption of such a policy.

E3-2

Actions and resources related to water and marine resources

ALK aligns its practices with regulatory requirements and environmental considerations, seeking opportunities for efficient water use and sustainable management. Water management is an integral part of ALK's environmental and health and safety management tasks.

The demand for water as a part of ALK's production processes underscores the need to balance operational requirements with environmental sustainability.

To ensure operational efficiency and minimise consumption, ALK has installed water meters to monitor and control water usage. This is particularly important in areas with existing water-related challenges.

In 2024, ALK focused on mapping consumption from the installed meters to evaluate opportunities for efficient water use and sustainable management. These efforts aim to reduce the environmental impact of water consumption while supporting operational needs. As a result, no actions were taken in 2024 in relation to general water use, and specifically to ALK's production site in Madrid (Spain). In addition, at the time of reporting, no action plan for 2025 has been developed yet.

Metrics and targets

E3-3

Targets related to water and marine resources

ALK has not set global targets for reducing water consumption or managing marine resources and water risk areas beyond local legal requirements. In 2024, ALK installed

E3-4

Water consumption

meters at all production sites to monitor water usage, both in production areas and for irrigation. This enables ALK to assess efficiency and consumption across different processes, ensuring effective future water use.

E3-4

Water consumption

In 2024, ALK's overall water consumption was 405,306 m 3. This year, ALK included the irrigation for all leased land for ALK source materials, and installed meters to measure exact consumption. The domestic water use was 92,533 m 3 (2023: 101,413).

The consumption of water at Madrid (Spain) was 11,495 m 3 (2023: 10,646). Madrid (Spain) production site is located in the Tagus river basin, which has a low water quality and quantity.

systems, may not always be feasible or aligned with the terms of the leasing agreements.

ALK does not currently have water storage facilities. The production processes at ALK’s production sites generally rely on a direct and consistent supply of water from municipal or other external sources, reducing the immediate need for on- site water storage. Since water is not extensively reused or recycled, the requirement for storage infrastructure is limited.

1 2023 figures are not covered by the Independent Auditor’s limited assurance report.

2 In 2023, ALK reported a total water consumption of 128,087 m 3, excluding irrigation from leased land, for which data was not available and could not be retrieved.

ALK reused 18,624 m 3 of water for irrigation purposes on the land where crops are cultivated to produce allergenic source materials. Water used in ALK’s production processes must meet strict regulatory standards for quality and sterility, particularly in pharmaceutical manufacturing. These requirements make water reuse or recycling complex and may require advanced treatment systems to ensure compliance, which are not currently in place. As some allergenic source materials come from leased land, implementing longterm infrastructure, such as water recycling

The focus on investments in initiatives with immediate and significant environmental impacts has over the past year taken precedence over the development of water storage systems. In regions where water availability is generally stable or sourced directly from external providers, water storage may not be deemed essential. For example, in areas where water supply networks are reliable, on-site storage systems may not add significantly to operational efficiency.

E4 Biodiversity and ecosystems

Strategy

E4-1

Transition plan and consideration of biodiversity and ecosystems in strategy and business model

The majority of ALK's allergenic source materials covering pollens, mites and molds are cultivated and collected. Source material from insect venom is collected by electro-stimulation (bees) and by a collection of wasp and hornet nets. The allergen source materials are purified before further processing to active pharmaceutical ingredients (APIs) used in ALK's medicinal products. Systemic sustainable agricultural practices are implemented to minimise ALK's impact on nature, including:

• Diversifying species by planting a variety of crop types and thereby providing a diverse range of pollination times for pollinator species like bees.

• Minimising pesticide and fertiliser inputs by leveraging Integrated Pest Management Principles.

• Protective native flora and fauna by establishing large buffer zones.

• Minimum soil disturbance by implementing lime application.

ESRS E4

Impacts, risks and opportunities

As part of the materiality assessment process, a review of ALK's production sites has been done, using the WWF Risk Filter to identify and evaluate potential and actual biodiversity and ecosystem impacts, risks and opportunities ( for more details, see E4-IRO1 on page 42).

Post Falls (USA) met the materiality threshold and was thus deemed material in relation to biodiversity impacts.

ALK has not yet conducted a comprehensive resilience analysis of its strategy and business model in relation to biodiversity and ecosystems. As a result, a transition plan related to biodiversity and ecosystems has not been created yet. The analysis of ALK’s material sites in terms of dependencies and ecological status will be performed over the coming years.

ESRS 2-SBM3

Material impacts, risks and opportunities and their interaction with strategy and business model

The materiality assessment process outlined in ESRS 2 IRO-1, on pages 41-43, did not identify any material negative impacts with regard to land degradation, desertification or soil sealing. However, the following material impact on the state of species was identified:

Impact

Hornets and wasps eliminated for venom harvesting

ALK collaborates with local communities near Post Falls (USA) production site to remove wasp and hornet nests and collect venom for the API in its medicinal products. The wasps and hornets are eliminated as part of the harvesting process. Removing wasp and

hornet nets is part of pest control programs in areas in densely populated areas.

This site is not located close to a biodiversitysensitive area and thereby not negatively affecting such areas. Moreover, wasps and hornets are not threatened species.

The venom harvesting process represents an actual negative impact on the local population size of wasps and hornets. This impact is directly due to ALK's activities and occurs in ALK's own operation in the short, medium and long term.

The list and description of material sites is further developed in E4-1 on page 61.

E4 Biodiversity and ecosystems IRO

Hornets and wasps eliminated for venom harvesting

negative impact

Impact, risk and opportunity management

E4-2

Policies related to biodiversity and ecosystems

ALK adheres to national legislation and regulatory demands, as described in procedures part of ALK's Quality Management System covering the part of the supply chain ALK controls. ALK has performed several initiatives over the years to support biodiversity at its material site in Post Falls (USA). As ALK has not yet performed a biodiversity-related resilience analysis, ALK does not currently have a formal policy relating to biodiversity and ecosystems.

Specifically, the company has not adopted a policy addressing its material impacts or dependencies, or their social consequences. There are also no policies on responsible production, sourcing, or consumption from ecosystems, nor on the traceability of products, components, and raw materials. ALK does not have a biodiversity and ecosystem protection policy covering operational sites owned, leased, or managed in or near a biodiversity sensitive area. ALK has no policy on sustainable land and agriculture, sustainable oceans and seas or deforestation.

E4-3

Actions and resources related to biodiversity and ecosystems

In 2024, the focus has been on mapping ALK's impacts, risks and opportunities relating to biodiversity and ecosystems. No new actions have been taken in 2024 on this matter beyond what is already implemented as part of daily management. In particular, no biodiversity offsets have been used, and local and indigenous knowledge and nature-based solutions have not been considered.

Metrics and targets

E4-4

Targets related to biodiversity and ecosystems

ALK is to conduct a deeper analysis of its biodiversity impacts in the coming years with inspiration from the Task Force on Nature- related Disclosure framework. As this analysis is still to be performed, ALK has not yet set targets related to biodiversity and ecosystems. In particular, no ecological thresholds and allocations of impacts were applied, and no biodiversity offsets have been used. The Kunming- Montreal Global Biodiversity Framework, the EU Biodiversity Strategy for 2030 and other biodiversity and ecosystem- related national policies and legislation have not been used.

E5 Resource use and circular economy

Impacts, risks and opportunities

Pharmaceutical standards on products leaving minimal leeway for circularity in product design

Operational waste partly disposed in landfills

ESRS 2-SBM3

Material impacts, risks and opportunities and their interaction with strategy and business model

Impact

Use of non- recycled paper, single- use aluminium and single- use plastic

ALK's operations require the use of single- use plastics in production, as well as single- use aluminium bottles for transporting active pharmaceutical ingredients. ALK also uses non- recycled paper and plastics, which are vital for maintaining sterility and efficiency in operations.

Those materials have negative environmental impacts during manufacturing and/or end of life. In particular, manufacturing of single-use plastics consumes fossil fuels and emits greenhouse

negative impact

gases, furthering climate change, while plastic waste, often non-biodegradable, poses long-term environmental risks. Once disposed of, plastics accumulate in landfills and, in some cases, enter natural ecosystems, where they can harm wildlife and pollute water bodies. However, if disposed correctly, plastic is also to be recognised as an important energy source. Aluminium is an energy-intensive resource. The environmental effects of paper production include deforestation, use of large amounts of energy and water, and air pollution and waste problems.

This actual negative impact occurs in ALK's own operations on the short, medium and long term. ALK recognises its shortterm operational reliance on these materials and is working to evaluate opportunities for more sustainable practices, such as improved recycling efforts.

Impact

Pharmaceutical standards on products leaving minimal leeway for circularity in product design

The pharmaceutical industry is highly regulated, setting high standards on the quality and sterility of products. The high standards, which ALK must comply with, result in plastic waste and limited options for using circular products. This leads to environmental impacts from the upstream production of the materials and increased waste from both production and endusers.

This results in a negative actual impact on the environment, which spans the short, medium and long term in its own operations. ALK is exploring opportunities to transition to more sustainable packaging, e.g. by introducing recycled paper and cardboard.

Impact

Operational waste partly disposed in landfills

A portion of ALK’s operational waste is disposed of in landfills, leading to potential environmental effects such as odour, noise, smoke, and water contamination. This impact varies with local waste management infrastructure, with greater reliance on landfills in the USA compared to Europe. Limited recycling infrastructure in some areas hampers the recovery of reusable materials, and recycling rates depend heavily on local state regulations.

This actual negative impact occurs within ALK’s own operations over the short and medium term. Efforts are underway to

enhance waste tracking and explore recycling and reuse opportunities to reduce landfill dependency.

Impact

End of life of products

The management of ALK products at the end of their lifecycle is shaped by national and regional differences in waste handling practices. Limited recycling infrastructure for medicinal products means that, in some regions, some products are ultimately disposed of in landfill systems. This hinders the recovery of potentially reusable materials, including recyclable packaging, and creates uncertainty in disposal outcomes.

This creates an actual negative impact in ALK's downstream value chain as a result of ALK's own activities. It occurs in the short, medium and long term.

Although some ALK products include recyclable packaging or components, the recycling rates for these materials depend heavily on local country and state regulations. ALK is continuing to evaluate opportunities to better understand and improve the handling of waste streams in the product lifecycle.

Impact, risk and opportunity management

E5-1

Policies related to resource use and circular economy

Waste is managed at site level, meeting local legal requirements. As a result, ALK has not previously had the need for establishing a formal global policy on resource use and circular economy. In 2025, ALK plans to introduce a global waste policy to address landfill waste.

Concerning circular economy, ALK has not adopted global policies specifically focused on transitioning away from the extraction of virgin resources. Moreover, ALK does not have global policies on sustainable sourcing and use of renewable resources, or on addressing impacts, risks and opportunities in ALK's upstream and downstream operations.

E5-2

Actions and resources related to resource use and circular economy

Because ALK has not developed policies yet, no actions were undertaken in 2024 to achieve resource use and circular economy- related policy objectives. However, relevant actions and resources are evaluated and allocated at the operational level as appropriate to meet local regulatory requirements.

As part of its ongoing initiatives, ALK's focus in 2024 has been on improving its mapping of waste types and fractions in alignment with the ESRS. Moreover, ALK has launched initiatives which focus on developing plans to reduce and eliminate the amount of waste that is not part of a reuse or recycling programme.

Metrics and targets

E5-3

Targets related to resource use and circular economy

The focus in 2024 has been on aligning the waste reporting with the ESRS to establish a baseline. As a result, ALK has not currently set targets related to any layer of the waste hierarchy for resource inflows and outflows, in particular on waste, products and materials, whether mandatory or voluntary. However, ALK is evaluating its approach and considering implementing relevant targets in the future to align with evolving sustainability priorities and regulatory expectations.

E5-4

Resource inflows

ALK does not currently gather global data on its material resource inflows but plans to map this out during 2025 for future reporting.

E5-5

Resource outflows

All of ALK's waste is directed towards recycling, reuse, incineration with energy recovery and landfill. ALK does not have any waste managed as ‘other disposal operations’.

Total waste generated amounted to 2,882 tonnes (2023: 1,939). The waste generated increased by 49% due to improved waste reporting and the fact that organic materials are now included in the waste reporting. 86% (2,478 tonnes) of the total waste is nonhazardous.

81% of the waste was diverted from disposal (reused or recycled). Within this diverted waste, 40% (929 tonnes) was directed towards recycling initiatives and 60% (1,408 tonnes) was prepared for reuse, aligning with the Waste Framework Directive (Directive 2008/98/EC).

The waste directed to disposal was carefully managed based on waste treatment types. Out of the 545 tonnes, 74% (403 tonnes) was incinerated and 26% (142 tonnes) was sent to landfill.

ALK does not currently gather global data on the rate of recycable content but plans to map this out during 2025 for future reporting.

Waste generated diverted from disposal

Preparation for reuse

Recycling

Waste generated directed to disposal

Incineration

Landfill

At ALK, the waste composition can be separated into two primary waste streams:

Pharmaceutical waste streams, which include

• chemical waste and medical waste (residues from APIs, solvents, and reagents used in production processes)

• product- related material (plastics, metals, glass, and transportation boxes).

Agricultural waste streams, which come from ALK's source materials used in the allergen production, and include

• mite media (residual materials from the cultivation and extraction of allergenic source materials)

• organic materials (plant- based or biological substances such as hay and wood trimmings).

operations

EU Taxonomy

Under Article 8(1) of the Taxonomy regulation (EU) 2020/852 and further detailed in Annex I of the Disclosure Delegated Act (EU) 2021/2178, ALK is obligated to report on the sustainability profile of its Turnover, Capital Expenditure (CapEx), and Operating Expenditure (OpEx). This process involves evaluating ALK's economic activities against those enumerated in the delegated legislation of the EU Taxonomy (i.e. eligibility assessment), identifying ALK's eligible Turnover, CapEx, and OpEx, and finally assessing compliance with the Substantial Contribution Criteria (i.e. alignment assessment).The findings from both the eligibility and alignment assessments are encapsulated in key performance indicators (KPIs) for Turnover, OpEx, and CapEx.

For a full overview of our taxonomy-eligible activites, see the tables on pages 68-70.

Eligibility and alignment

In 2024, ALK has identified 98.0% turnover (2023: 97.8%), 18.7% CapEx (2023: 70.5%), and 57.9% OpEx (2023: 47.4%) eligibility. Key changes from 2023 results from error identification in last year reporting for CapEx and OpEx KPIs.

ALK has not claimed EU taxonomy alignment for any eligible activities as it cannot be documented. A climate risk assessment is planned for 2025.

Turnover

ALK has identified the following eligible turnover activities:

• PPC 1.2, manufacture of medicinal products: A large portion of ALK's turnover stems from the production of allergy immunotherapy treatments as well as adrenaline pens (97.9% of turnover).

• PPC 1.1, manufacture of active pharmaceutical ingredients (API) or active substances: A minor portion of ALK’s turnover is related to manufacture of allergen extracts for use in the diagnosis of specific allergies, for instance in skin prick tests (0.1% of turnover).

CapEx

ALK has identified the following eligible CapEx activities:

• PPC 1.2, manufacture of medicinal products: Capital expenditures related to the manufacturing of allergy immunotherapy treatments and adrenaline pens (12.8% of CapEx).

• CCM 7.5, Installation, maintenance and repair of instruments and devices for measuring, regulation and controlling energy performance of buildings: In 2024, ALK continued to install metering equipment in Denmark to monitor water and electricity consumption (0.1% of CapEx).

• CCM 7.6, Installation, maintenance and repair of renewable energy technologies: Related to the installation of an electrified boiler in France replacing a boiler running on natural gas (0.3% of CapEx).

• CCM 7.7, Acquisition and ownership of buildings: Projects related to investments and maintenance of ALK’s buildings (5.5% of CapEx).

OpEx

ALK has identified the following eligible OpEx activities:

• PPC 1.2, manufacture of medicinal products: OpEx relate to the manufacturing of allergy immunotherapy treatments and adrenaline pens (52.7% of OpEx).

• CCM 6.5, transport by motorbikes, passenger cars and light commercial vehicles: Leased vehicles (5.2% of OpEx).

Annex XII of the Consolidated Complementary Delegated Act

All amounts in the tables below are presented in mEUR

Template 1 Nuclear and fossil gas related activities

energy related activities

1. The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.

2. The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies.

3. The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades.

Fossil gas related activities

4. The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels.

5. The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels.

6. The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels.

Proportion of turnover from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2024

A. Taxonomy-eligible activities

A.1. Environmentally sustainable activities (Taxonomy-aligned)

B. Taxonomy-non-eligible activities

Proportion of CapEx from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2024

A. Taxonomy-eligible activities

A.1. Environmentally sustainable activities (Taxonomy-aligned) CapEx

B. Taxonomy-non-eligible activities

Proportion of OpEx from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2024

A. Taxonomy-eligible activities

A.1. Environmentally sustainable activities (Taxonomy-aligned)

B. Taxonomy-non-eligible activities

OpEx

Accounting policies – Environmental information

The numeric datapoints reported are verified through internal controls, analysis, benchmarks, and regular business meetings. External auditors provide limited assurance on 2024 metrics. The metrics are not validated by another external body, with the exception of the science-based target metrics which are approved by the Science Based Targets initiative (SBTi). N/A is used when data was not available at the time of the reporting and could not be retrieved.

Scope

Environmental data covers ALK’s production sites in the USA (Post Falls and related farms, Port Washington, Oklahoma City, Luther and Plainville), Denmark (Hørsholm), Spain (Madrid), and France (Vandeuil and Varennes). Sales offices located across the globe are excluded from reporting on energy, pollution, water, substance of concerns and waste data due to the low materiality of their environmental footprint.

From 2024 onwards, in accordance with ESRS requirements, data from sales offices are included in greenhouse gas (GHG) emission reporting ( E1-6 on page 54). However, the reduction target for scope 1 and 2 remains focused primarily on production sites, as validated by SBTi.

Climate Change

E1-5

Energy consumption and mix

Energy consumption for operations is measured as consumption of power, heat and fuel. "Fuel consumption from crude oil and petroleum products" consists of diesel, gas oil and propane. Energy consumption is based on meter readings and/or invoices at individual production sites. Numbers are reported in KWh and converted to MWh.

Some invoice service periods do not align with calendar months; however, they are one month long, determining

reporting periods. While the majority of the data is derived from actual data, some estimations are applied to a minor portion of the fuel consumption data:

• Fuel consumption from diesel backup generators: Diesel consumption under "fuel consumption from crude oil and petroleum products" is primarily based on estimates. These generators contribute only a minor portion of the overall fuel consumption from crude oil and petroleum products.

• Fuel consumption estimation for collecting vehicles: For some collecting vehicles at USA production sites, where odometers are aged or damaged and mileage data cannot be documented, fuel consumption is estimated.

Electricity production is sourced 100% from renewable power, primarily through Renewable Electricity Certificates (REC). The share of renewable power used at production sites is reported according to the marketbased method of the GHG Protocol scope 2 Guideline.

The conversion factors for measuring units are sourced from well-established and authoritative references. The use of conversion factors for measuring units are consistent across multiple sites and contexts, ensuring reliability and uniformity in reporting and calculations.

E1-6

Gross Scopes 1, 2, 3 and Total GHG emissions

GHG emissions are prepared in accordance with the GHG Protocol, using the operational control approach.

GHG emissions are reported in metric tonnes of carbon dioxide equivalent according to global warming potential values published by the Intergovernmental Panel on Climate Change (IPCC) based on a 100-year time horizon. All greenhouse gases are included.

When available and recent, source and supplier-specific emission factors or local grid emission factors are used.

This methodology ensures accurate emission factors by reflecting local energy mixes and regional characteristics, leading to reliable and relevant emission calculations. When such data are unavailable or outdated, general emission factors are utilized. The specific databases used in these instances are disclosed below.

Scope 1 emissions

Reported scope 1 emissions comprise direct energy consumption (including emissions from collecting vehicles), company fleet and refrigerants.

Direct energy consumption

GHG emission from direct energy consumption is calculated using the fuel consumption reported in E1-5 on page 55. This includes diesel, gas oil, natural gas and propane.

When local emission factors are unavailable, general CO2 emission factors from UK Government GHG Conversions Factors and Environmental Protection Agency (EPA) GHG Emissions Factors are used. These authoritative sources provide comprehensive data covering a wide range of activities and energy sources, ensuring that the Global Environment, Health and Safety (EHS) function has access to extensive data suitable for all ESG calculations.

Emissions from collecting vehicles are reported under direct energy consumption. Collecting vehicles are leased or owned company vehicles used for collecting source materials. Emissions are based on mileage and emission factors for diesel and gas oil are updated according to EPA annual emissions factors.

Company fleet

Company fleet emissions are based on either actual mileage or contracted annual mileage. Average passenger vehicle emission factors are taken from UK Department for Environment, Food & Rural Affairs (DEFRA). Data for December is estimated based on average monthly consumption in the reporting year.

Refrigerants

Emissions from refrigerants listed in the GHG Protocol are included in scope 1. Associated CO2e emissions, resulting from the leakage of refrigerants from cooling systems, are calculated based on refrigerant quantities and their respective global warming potential. Emission factors used for reporting are based on annual data from the UK Government Conversion Factors for GHG reporting.

Scope 2 emissions

Scope 2 emissions comprise CO2e emissions from purchased electricity and heat (district heating), as disclosed in E1-5 on page 55

Scope 2 location-based emissions are calculated based on average energy generation emission factors for defined locations, while scope 2 market-based emissions are calculated based on emissions calculated from specific energy purchase contracts and therefore consider renewable energy purchase certificates.

When local emission factors are unavailable, general CO2 emission factors from UK Government GHG Conversions Factors and EPA GHG Emissions Factors are used. These authoritative sources provide comprehensive data covering a wide range of activities and energy sources, ensuring that Global EHS has access to extensive data suitable for all ESG calculations.

ALK does not have bundled certificates. All electricity consumption is covered by 100% unbundled renewable energy certificates, while none of its district heating consumption is covered by unbundled certificates.

Sales offices

GHG emissions from sales offices are estimated based on office area (square meters). Emission factors are specific to each country, and the energy use factor is a worldwide average for offices.

Scope 3 emissions

All scope 3 emissions are calculated based on data covering January-December 2024, except category 3, 4 and 12. The months of November and December are estimated based on average consumption in the reporting year.

Scope 3 categories 8, 10, 11, 13, 14, and 15 from the GHG Protocol are excluded as they are not relevant to the company's operations.

Purchased goods and services (Category 1)

(significant estimate): Calculated using spend-based emission factors from the Comprehensive Environmental Data Archive (CEDA). The use of estimates for this datapoint is considered significant.

Capital goods (Category 2): Calculated using spendbased emission factors from CEDA for upstream emissions of industrial machinery owned and operated by ALK.

Fuel and energy related activities

(Category 3): Calculated for upstream transmission & distribution losses of fuels, electricity and district heating consumed by ALK which are not included in scope 1 and scope 2, by using emission factors from DEFRA.

Upstream transportation and distribution (Category 4): Calculated using a mix of spend-based emission factors from CEDA and primary emissions from certain distribution providers. Well-to-tank emission factors are provided by DEFRA.

Waste generated in operations (Category 5): Calculated using emission factors from DEFRA dependent on material type, treatment type, material location and material weight.

Business travel (Category 6): Calculated using well-towheel flight emissions from DEFRA with primary activity data from service providers.

Employee commuting (Category 7): Estimated using Quantis emission factors based on the average number of full-time equivalent employees in the reporting year, with well-to-tank emission factors from DEFRA.

Downstream transportation and distribution (Category 9): Calculated using spend-based emission factors from CEDA on trunk transportation.

End-of-life treatment of sold products (Category 12): Estimated for materials used in products using DEFRA emission factors for material type, country of distribution, assumed treatment type and weight.

E1-3

Actions and resources in relation to climate change policies

Scope 1+2 reduction target

GHG emission reduction targets follow SBTi guidelines, encompassing all production sites. Emissions from sales offices are excluded, as they account for less than 5% of scope 1 and 2 GHG emissions. Future developments, such as changes in sales volumes, have been considered when setting the targets. The achieved reduction is calculated against a 2022 baseline for scope 1 and 2 emissions from production sites, ensuring consistency in the scope over the years.

Scope 3 emissions from suppliers with sciencebased targets

This metric quantifies scope 3 emissions from suppliers with SBTi targets, including those with commitments. To determine this, suppliers responsible for more than 80% of GHG emissions (covering purchased goods and services, capital goods, upstream transportation and distribution, business travel and downstream transportation and distribution) are identified based on the highest spend and emissions data for 2024.

These suppliers are verified through the SBTi dashboard to confirm which have approved targets. The Supplier Tracker List is used to document suppliers with approved targets.

After verification, the emissions from these suppliers are aggregated and compared to the total emissions in these categories. This methodology ensures accurate and transparent reporting aligned with standard ESG accounting principles.

Pollution

ALK follows the EU’s Corporate Sustainability Reporting Directive (CSRD) and its definition of "Substances of Concern" (SoCs) and subset category “Substances of Very High Concern” (SVHCs). All production sites and Research and Development report on purchased quantities of SoCs and SVHCs. All SoCs and SVHCs arise from purchased quantities.

At production sites, which include Product Supply and Research and Development, comprehensive lists of SoC chemicals are created by using the internal chemical management system. SoC chemicals are labelled with one or more Hazard-statements (H-statements), according to the Classification, Labelling and Packaging of chemicals (CLP Regulation) in EU. For production sites in the USA, where H-statements are not available, GHS hazard statements (defined by OSHA) are translated into H-statements to determine which chemicals are SoCs or SVHCs.

Purchased quantities are based on invoices or delivery notes from vendors, reported in local unit of measures and converted to metric tons for disclosure.

Water and marine resources

(incl. significant estimate for irrigation)

At production sites, water is categorised into water for domestic use (drinking water, sanitary water, and water for production) and water for irrigation, which is used for cultivating source materials. For irrigation, the use of estimates is considered significant.

Water consumption is reported in m 3 based on meter readings and/or invoices at individual production sites. When meter readings or invoices are unavailable, estimation-based water consumption is used to calculate water consumption:

• Water irrigation for leased land at Post Falls (USA) production site is estimated based on land area. The water consumption intensity factor (water consumption per acre) is calculated by the landowner using data from their records and their knowledge of the land, crops, and soil. For one of the leased land, water

irrigation consumption is calculated using data from a specific area at Post Falls (USA) production site and then applied to that leased land for reporting purposes.

• Water usage at leased facilities in Plainville and Port Washington (USA) production sites is estimated based on square footage occupied by ALK, as stated in the leasing contract, relative to the total square footage of the building. Using these numbers, an estimation for water consumption is calculated.

Currently, there is only one leased land in the USA where water reuse occurs, overseen of the DEQ (Department of Environmental Quality). This area is part of a water reclamation program. The landowner provides water consumption values for ALK crops once a year based on meter reading.

Production sites located in areas at water risk are identified using the "Water Scarcity" dimension of the WWF Water Risk Filter. Madrid (Spain) production site is the only site classified as being in a water risk area. Additionally, areas of high-water stress are defined as areas were the percentage of total water withdrawn is higher than 40%, as determined by the "Water stress" dimension of Aqueduct Water Risk Atlas tool of the World Resources Institute (WRI). Madrid (Spain) production site is also the sole site identified in a high-water stress area.

Resource use and circular economy

Waste is generally reported and classified at site level based on invoices received from waste vendor recipients. Waste for production sites is converted from local unit into metric tons in total. Some estimates are used to calculate waste:

• General solid waste at Luther and Plainville (USA) production sites is estimated based on the pickup cycles reported by the waste vendor for each quarter.

• For the leased location at 2 Channel at Port Washington (USA) production site, general solid waste is not managed internally. Estimation is therefore based

on the average number of garbage bags collected per day.

• For some USA production sites and Madrid (Spain) production site, certain types of waste are estimated based on the number of pickups reported by the waste vendor. These estimates are either supported by actual waste weight measurements collected over a defined period and applied as fixed standards for the waste type, or, when actual weights are unavailable, derived using conversion factors published by governmental authorities.

The actual weights of containers or dumpsters are measured at local production sites over a defined period.

By default, waste is reported in accordance with the waste hierarchy of EU waste polices and legislation, which is described in the EU waste framework directive (Directive 2008/98/EC).

For production sites in Europe, when there is a difference between EU and national legislation, ALK follows the national legislation. Waste types are categorised by the respective waste vendor according to the national legislation.

For production sites in the USA, estimation-based waste is calculated using conversion factors published by the US EPA.

Intensity calculations

Net revenue amounts are derived from ALK group's total revenue of the consolidated financial statements (note 2.1 on page 114).

Intensity calculations are reported as unit / annual revenue in million DKK. GHG intensity is calculated using total emissions (scope 1, 2 and 3) on location-based and market-based methods.

All revenue falls under NACE Section C: Manufacturing, Division 21: manufacturing of basic pharmaceutical products and pharmaceutical preparations according to Commission Delegated Regulation (EU) 2022/1288. Manufacturing is a high climate impact sector.

EU Taxonomy

The turnover, OpEx and CapEx numerators are determined from ALK’s assessment of the relevant economic activities within all six environmental objectives.

The turnover denominator is derived from ALK group‘s total revenue of the consolidated financial statements ( see note 2.1 on page 114). The Turnover KPI is defined as Taxonomy-eligible Turnover divided by total Turnover.

The CapEx denominator is derived from the ALK group’s total annual investments in property, plant and equipment as well as intangible assets, excluding short term leases and non-capitalised ROU assets based on Danish GAAP, as stated in the consolidated financial statements ( see notes 3.1 - 3.3 on pages 121-126). Goodwill is not included in CapEx. The CapEx KPI is defined as Taxonomy- eligible CapEx divided by total CapEx.

The OpEx denominator covers direct non-capitalised costs that primarily relate to repair and maintenance, car expenses that are short term leased, tests and costs relating to the servicing of group assets that are necessary to ensure the continued and effective functioning of such assets. The OpEx KPI is defined as Taxonomy eligible OpEx divided by total OpEx.

For the CapEx and OpEx allocations, the relevant purchases and measures, as well as the primary related economic activity, are identified. Thereby, it is ensured that no CapEx or OpEx is double counted.

Social

S1 Own workforce

ESRS S1

Equal treatment and opportunities

ESRS 2-SBM3

Material impacts, risks and opportunities and their interaction with strategy and business model

Impacts, risks and opportunities

As a global leader in allergy treatment within the pharmaceutical industry, ALK recognises that its workforce is its most valuable asset. ALK's strategy is designed to support their wellbeing, professional growth and inclusivity, ensuring that ALK attracts and retains key competences across its operations.

In the materiality assessment, ALK identified the following material impact and risk:

Impact

Decline in employee competencies due to inadequate skill upgrading

ALK relies on its employees having the right skills and competences in order to be able to perform their tasks and support business growth. If not maintained, the employees' skills will decline over time, and their ability to meet future business needs will not be supported. Without adequate development plans, employees may find it more challenging to meet new job expectations, have limited opportunities for promotion, and experience a decrease in employability after leaving ALK.

This creates a potential negative impact, which occurs in ALK's own operations over the short, medium and long term and is directly linked to ALK's own activities.

Therefore, ALK seeks to foster a culture of continuous learning and growth for its workforce. As part of the Global People Performance Process, all employees are required to have a personal development plan. These plans are linked to job content and performance goals and are updated annually. This process is exclusive to ALK employees and does not extend to non-employees.

Risk

Employee retention, attraction and development challenges

ALK operates in a highly competitive labour environment within the pharmaceutical industry, especially at its Danish, Chinese, and USA East Coast sites. With a revenue growth strategy of 10%, paying competitive salaries and ensuring continuous learning and skills development is critical for ALK to meet its strategic targets. Salaries below relevant market levels as well as insufficient learning and development opportunities can negatively

impact employee retention and reduce the overall attractiveness of ALK as a workplace. This may hinder the company's ability to attract new employees and retain existing ones.

This risk is focused on ALK's own operations and could lead to a shortage of necessary competencies needed to support business growth in the short, medium, and long term.

To mitigate this risk, ALK’s reward philosophy and salary processes aim to ensure competitive wage levels and emphasises continuous skill enhancement across all business areas, through learning and development opportunities.

S1-1

Policies related to own workforce

ALK endorses the UN Guiding Principles on Business and Human Rights and is a signatory to the UN Global Compact. These commitments are integrated into ALK's Code of Conduct, which applies to all employees.

ALK's Code of Conduct explicitly prohibits employees from condoning or engaging in any form of child or forced labour. The policy does not specifically mention human trafficking, as this is not a high-risk topic within ALK's industry.

The Code of Conduct is presented in detail in G1-1 on page 88.

In addition to the Code of Conduct, which addresses harassment, ALK has adopted a Diversity & Inclusion (D&I) Policy which aims to eliminate discrimination and promote equal treatment and opportunities for all employees. It sets out ALK's ambition to create an inclusive work environment that fosters a sense of belonging where different perspectives, abilities, talents and experiences are able to contribute equally. The policy applies to all ALK employees. The most senior level accountable for implementing the policy is the ALK Sustainability Committee, which receives quarterly reports from ALK’s sustainability

department on company-wide diversity performance. The ALK D&I policy specifies that the following grounds for discrimination are unacceptable: age, gender, race, ethnicity, religion, sexual orientation, disability or and other characteristics including work and life perspectives. The policy does not include specific commitments for inclusion of people from particularly at-risk or vulnerable groups.

ALK tracks employees’ perceptions of diversity and inclusion and their sense of psychological safety via the annual employee engagement survey. In 2024, the overall perception of D&I in ALK was 8.4, which is 0.2 points above the industry benchmark. Other initiatives to promote diversity and inclusion include training leaders on unconscious bias and incorporating D&I topics into talent development programmes.

S1-2

Processes for engaging with own workforce and workers’ representatives about impacts

ALK’s commitment to fostering a culture of open communication, engagement and collaboration is anchored in two key processes: the workers’ councils and the employee engagement survey. This engagement has informed the material impacts and opportunities around development plans and learning opportunities, as well as health and safety matters.

Workers’ councils

Formalised workers’ councils are established at all European sites where legally required. These councils serve as dedicated forums where both employees and management can address and resolve a spectrum of issues, ranging from the company's competitiveness to employee engagement. In the USA and China, dialogues are facilitated through the People & Organisation departments.

Workers’ council meetings are held several times a year. Engagement varies according to topic and can take the form of

information-sharing, consultation or co-determination. Involvement of workers' councils in decision-making follows local legal principles for engagement.

Engagement survey

Direct engagement with all employees is driven by the annual global employee engagement survey, which provides a direct avenue for expressing satisfaction and offering feedback.

This year's participation rate remained high at 95% (2023: 95%), reflecting the Executive Leadership Team's commitment to valuing employee feedback and taking action. The overall engagement score was 8.3 (2023: 8.4), positioning ALK in the top 5% against the international healthcare benchmark.

The Executive Vice President of People and Organisation is responsible for ensuring that the engagement with employees happens and informs the Executive Leadership Team (ELT) of the results and actions taken.

S1-4

Taking action on material impacts on own workforce, and approaches to managing material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions

Development plans at ALK depend on an employee's lifecycle stage (new hire, experienced professional, or resigned employee). These plans are linked to job content and performance goals, updated annually between March and October. The process is tracked through the human resources system, with a completion rate of 93% for 2024 ( see S1-13 on page 78).

ALK follows the 70-20-10 learning principle: 70% on- the-job training, 20% peer learning, and 10% training/classroom learning. ALK does not currently have a process to assess the quality of development plans, so it is not possible to document

the exact linkage between development actions and individual performance.

ALK plans to review and improve the development plan process in 2025 by providing clearer guidance and enhanced training for both employees and leaders. ALK also aims to enhance its D&I strategy to include other diversity parameters, such as geography. ALK intends to update its talent approach to ensure that the right talents are identified, targeted, and developed in alignment with the overall strategy.

To address the continuous development of its leaders, ALK continued the rollout of the Leading with Impact programme for 186 leaders across the organisation. ALK will continue to focus on leadership development by addressing critical leadership capabilities and creating scalable training solutions for leaders worldwide.

ALK has a dedicated team within Global People and Organisation that manages global development programmes for employees. In addition, leaders and employees are responsible for ensuring that own skills meet current and future job requirements.

S1-5

Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities

As part of the CSRD implementation, ALK has prioritised the establishment of baseline data for its reporting before initiating the target- setting process. As a result, ALK has not yet set targets to address its material impacts and opportunities within its own workforce or engaged with employees or their representatives specifically on this matter. The need for additional targets will be reviewed in 2025.

S1-6

Characteristics of the undertaking’s employees

2023 figures are not covered by the Independent Auditor’s limited assurance report.

ALK employs 2,812 employees (2023: 2,889), out of which 2,574 are permanently employed (2023: 2,638). The employee turnover was 17% in 2024 (2023:12%), out of which 283 employees left voluntarily and 180 involuntarily. The decrease in number of employees and the increase in employee turnover reflects the organisational adjustments relating to the implementation of the Allergy+ strategy.

The most representative number, disclosed in the consolidated financial statements, corresponding to the total number of employees is the full-time equivalent employees (FTEs) (note 2.4 on page 116).

S1-13

Training and skills development metrics

S1-16

Remuneration

1 2023 figures are not covered by the Independent Auditor’s limited assurance report.

The gender pay gap reflects the disparity in representation, as ALK currently has a higher proportion of men than women in senior leadership positions. ALK is continuously working on ensuring gender equality in leadership positions.

Health and safety

ESRS 2-SBM3

Material impacts, risks and opportunities and their interaction with strategy and business model

Impacts, risks and opportunities

Impact

Injuries due to workplace accidents in farming and production

Health and safety management is an essential part of ALK’s operations, especially in production and farming activities where employees may face workplace risks. Based on engagement with internal stakeholders representing affected stakeholder groups, ALK has developed an understanding of how people working in particular activities may produce specific negative impacts.

Workplace accidents during production and farming may result in injuries to members of ALK’s workforce. These injuries can cause physical harm, impact mental well- being, and raise concerns about workplace safety. Such incidents may also affect employee morale and productivity.

This creates an actual negative impact on ALK's own workforce, which is related to individual incidents and occurs annually in the short term. To prevent accidents and mitigate their effects, ALK conducts risk assessments, implements safety protocols, and adheres to national and Occupational Safety and Health Administration (OSHA) standards for injury recording and compliance.

S1-1

Policies related to own workforce

ALK adheres to national legislation and regulatory requirements in all countries of operation. ALK follows local legislation to ensure compliance with health and safety requirements. In the USA, ALK complies with OSHA standards. Safety procedures are implemented at production facilities to mitigate risks identified through assessments and ensure a safer working environment.

As a result, ALK has not previously identified the need for a global Environmental, Health, and Safety (EHS) policy or a global management system.

S1-3

Processes to remediate negative impacts and channels for own workforce to raise concerns

ALK emphasises the importance of engaging workers in health and safety practices to foster shared responsibility and workplace safety.

To prevent injuries, ALK conducts risk assessments across all its production sites. These assessments identify potential hazards, implement appropriate measures to reduce risks and evaluate the effectiveness of existing safety measures. Workers contribute to those risk assessments by providing input on hazards and by helping to develop site- specific safety measures.

Workplace injuries are also recorded and monitored. For USA operations, ALK adheres to OSHA standards for tracking and reporting injuries. This data provides insights into workplace safety trends and helps ensure that operations comply with applicable legal frameworks.

Employees are encouraged to report unsafe conditions or hazards, which are promptly reviewed and addressed to improve workplace safety. Regular training ensures that

workers understand health and safety procedures and risks relevant to their tasks.

All employees can also raise concerns through the whistleblower platform ALK Alertline, which is described in detail in G1 on page 89.

S1-4

Taking action on material impacts on own workforce, and approaches to managing material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions

ALK has a continuous focus on maintaining health and safety for its employees and is actively engaged in projects focused on improving material risk and work force exposure. This engagement has ensured that ALK employees’ exposure to chemicals/ substances is minimised/reduced. Tracking of yearly training ensures that ALK employees have the necessary competences to perform safe work processes.

S1-14

Health and safety metrics

Fatalities as a result of work- related incident

Employees covered by health & safety manage

1 2023 figures are not covered by the Independent Auditor’s limited assurance report.

ALK had 6 accidents with lost time absence ordinated by a medical professional in 2024 (2023:3). This resulted in an accident rate of 1.5.

S1-17

Incidents, complaints and severe human rights impacts

See G1 on page 90.

S2 Workers in the value chain

ESRS 2-SBM3

Material impacts, risks and opportunities and their interaction with strategy and business model

Impacts, risks and opportunities

The materiality assessment identified the impacts seen below related to workers in ALK's value chain. Those impacts originate from ALK’s strategy and business model and are integrated into ALK’s work with its suppliers. While ALK has identified its highlevel material impacts on value chain workers, a more detailed understanding is still to be developed, to identify specific activities where workers may be at a greater risk of harm. However, the majority of ALK’s suppliers are EU-based where the level of law enforcement is generally high and the risk of child labour low.

Impact

Health- and safety-related incidents involving workers in the value chain

As an international pharmaceutical company specialising in products based on allergenic source materials, ALK relies upon business partners and suppliers across its value chain to

produce and distribute its products. Health and safety management is integral to the success of both ALK and its suppliers. Health and safety incidents can result in a range of negative consequences for individuals and can potentially happen in all parts of the value chain.

The most significant groups of supplier employees who could be materially impacted are:

• Workers in upstream production units. They could be exposed to hazardous substances, including chemicals used in the manufacture of pharmaceutical ingredients and consumables. Key risks in this area include chemical exposure, operational hazards and ergonomic risks.

• Workers involved in downstream transportation. They face the risk of vehicle accidents, which can result in serious

injuries or fatalities. These include risks during loading and unloading as well as during transit.

• Workers handling hazardous waste. They can encounter harmful chemicals that pose significant health risks, including chemical burns, respiratory issues and toxic exposure.

The potential negative impact is concentrated in ALK's upstream and downstream supply chain and may occur in the short, medium and long term as individual incidents. To address this impact and prevent harm to workers in its value chain, ALK has policies and procedures in place to ensure that its business partners and suppliers uphold high safety standards. Moreover, ALK seeks to establish long-term partnerships with its suppliers, which offer them financial stability and allow them to allocate resources toward ensuring job security for their workers.

S2-1

Policies related to value chain workers

ALK’s Third-Party Code of Conduct outlines the standards of behaviour that ALK expects from all third parties globally when it comes to business conduct and treatment of employees. The Third-Party Code of Conduct is aligned with the Ten Principles of the United Nations Global Compact and follows the UN Guiding Principles on Business and Human Rights, as well as applicable laws, regulations, standards and labour agreements.

Key areas covered include health and safety, animal welfare, anti-corruption, environmental practices, working conditions, human rights (including child and forced labour, anti-discrimi -

Location in the value chain Time horizon

S2 Workers in the value chain

nation and fair pay), interaction with healthcare professionals and patient organisations. The policy does not specifically mention human trafficking.

Any violations of the standards set out in the ALK Third-Party Code of Conduct can be reported through the whistleblower platform.

The Third-Party Code of Conduct is an integral part of ALK's GxP (good practice) supplier agreements. All new suppliers must commit to the Code as a pre-requisite for collaboration with ALK. The Chief Finance Officer is the most senior-level executive accountable for the implementation of ALK’s Third-Party Code of Conduct.

In addition to the Third-Party Code of Conduct covering human rights impacts, ALK also adheres to the UK Modern Slavery Act and publishes an annual statement of compliance.

S2-2

Processes for engaging with value chain workers about impacts

While ALK does not currently have a formal process in place to engage with value chain workers about impacts, ALK is committed to developing robust engagement strategies that will enhance communication and strengthen its connection with value chain workers in the future. ALK is actively working to establish processes for engaging with value chain workers in 2025. The Senior Vice President of Global Procurement is responsible for the supplier engagement.

S2-3

Processes to remediate negative impacts and channels for value chain workers to raise concerns

Value chain workers can raise their concerns through the whistleblower platform ALK Alertline. No complaints involving such workers were substantiated in 2024. ALK does not have struc-

tures or processes to assess whether value chain workers are aware of and trust ALK Alertline.

S2-4

Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing material opportunities related to value chain workers, and effectiveness of those actions

Supplier relationships

ALK prioritises collaboration with reputable suppliers who adhere to high standards in their labour practices, reducing the likelihood of serious working conditions-related issues. By establishing long-term contracts with these suppliers, ALK ensures financial stability, which fosters a commitment to high labour standards and responsible working conditions. These agreements provide suppliers with reliable revenue streams, enabling them to invest in infrastructure, training and safety initiatives. Financial stability is fundamental for business development, and it enables suppliers to allocate resources to product development and job security for workers.

As a result, long-term contracts with suppliers both strengthen supply chain resilience and promote the well-being of workers, contributing to a sustainable and ethical operational environment.

Risk assessment and monitoring

To address supplier risk, ALK continued its collaboration with an external supplier evaluation platform to identify environmental, labour and human rights, and procurement risks. From this initial risk assessment, ALK continues to conduct high- level assessments to identify whether further engagement may potentially be required.

The potential negative impact that ALK might cause is monitored through its business relationships. If there is a potential case, appropriate actions are taken accordingly.

No severe human rights issues and incidents connected to ALK’s upstream and downstream value chain were reported in 2024 ( see G1-1 for more information on page 90).

Monitoring and continuous improvement

The sustainable procurement manager is a newly established role with responsibility for oversight and management of the sustainable procurement programme globally in ALK.

While ALK has not identified any material actual negative impacts, ALK will continue to evaluate its suppliers from a sustainability perspective and take action accordingly. To properly track the effectiveness of remedy actions for workers in the value chain in the future, ALK is seeking to implement a comprehensive monitoring system that includes regular assessments and feedback mechanisms to measure outcomes related to worker welfare and satisfaction over time.

ALK is committed to enhancing its due diligence processes by 2025, with a focus on continuous improvement and compliance with emerging reporting standards.

S2-5

Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities

ALK will be updating its responsible supply chain strategy in 2025 and considering the need for specific targets to manage health- and safety-related impacts on workers in the value chain. As of 2024, ALK has therefore not yet identified the need for targets related to workers in the supply chain or for engaging with workers in the value chain or their representatives.

ALK Alertline is described in detail in G1 on page 89.

S4 Consumers and end- users

S4-SBM3

Material impacts, risks and opportunities and their interaction with strategy and business model

Impacts, risks and opportunities

Allergy is the most common type of chronic disease globally and it has a profound impact on people’s lives. For more than 100 years, ALK has been at the forefront of long- term allergy treatment. ALK is dedicated to offering a wide range of treatments, products and services to meet the unique needs of people living with allergy, their families and doctors.

The materiality assessment identified the following material impacts and opportunities related to customers and end-users. The materially impacted consumers and end-users are healthcare professionals and patients.

Based on engagement with internal stakeholders representing affected stakeholder groups, ALK has developed an under-

standing of how particular products may create specific negative impacts.

Impact

Allergy treatment

ALK products are available worldwide, reaching individuals with diverse ethnic backgrounds, in some cases starting from childhood. ALK offers solutions and products for people affected by allergy and aims to treat a wide range of allergies. Within ALK's portfolio, sublingual immunotherapy tablets offer accessible long-term allergy treatment, which can be administered at home, unlike injections which require regular visits to a doctor. Moreover, tablets do not require up-dosing or refrigeration and are available for five of the most common respiratory allergies.

ALK’s products therefore seek to enhance the health and wellbeing of patients regardless of their ethnicity, gender, or age.

ALK's portfolio includes treatment options for a variety of allergens, some of which can be potentially life- threatening (e.g. anaphylaxis, venom immunotherapy). An adrenaline autoinjector is indicated in the emergency treatment of severe acute allergic reactions (anaphylaxis) to insect stings or bites, foods, drugs and other allergens as well as idiopathic or exercise anaphylaxis. Similarly, ALK’s venom immunotherapy can help patients who are highly allergic to stings from insects. For both cases, ALK enhances the personal safety of its endusers by providing effective treatment options and can turn a life- threatening condition into a non- life-threatening issue. For other allergies like house dust mites and grass and tree pollen, the treatment improves the quality of life of the patient.

These actual positive impacts are concentrated in ALK's downstream value chain, occur in the short, medium and long term and are linked to ALK's own activities.

Impact

Barriers to access

ALK is committed to providing more effective help to a greater number of people with allergies and implements its allergy care principles globally to ensure broad access. However, ALK products need to be prescribed by a healthcare professional. Currently, allergy treatment is not necessarily considered a priority topic by all healthcare systems, leading to a barrier to access to allergy care for the patient. This can have a consider-

Location in the value chain Time horizon

Consumers and end-users

able negative impact on patients who are unlikely to receive ALK medicines from an allergy specialist.

ALK aims to price its treatments fairly and competitively, and affordability for patients is often supported by public and/or private health insurance and reimbursement schemes offered by authorities. However, without access to public health provisions or insurance, some patient groups who could benefit from allergy treatment may not be able to afford it.

In markets such as the USA with private healthcare, hospital doctors and general practitioners are paid based on the services provided, leading them to favour giving injections over prescribing tablets. The structure of the healthcare system can therefore disincentivise doctors to prescribe the cheaper allergy tablets and favour potentially suboptimal and more expensive treatments such as injections.

The barriers to treatment access represent systemic actual negative impacts. They occur in ALK’s downstream value chain and recur every year. ALK is indirectly impacting the patients.

Impact

Patient safety

Allergy treatments are effective in most cases but not all. If the treatment proves ineffective, alternative options are limited, leaving individuals without the potential life- changing benefits of ALK products. This creates an actual negative impact, which directly compromises the well- being and safety of individuals relying on those treatments.

The impact is concentrated in ALK's downstream value chain, arises from ALK's own activities as individual and isolated events, and occurs in the short, medium and long term.

Opportunity

Climate change and respiratory health

Climate change directly threatens respiratory health by extending pollen seasons, increasing airborne allergens, and altering the distribution and abundance of allergenic plants. Global warming also leads to higher humidity, creating favourable conditions for mould growth and potentially higher allergen exposure. Addressing climate change is thus an environmental imperative with significant social and public health dimensions.

Climate- induced species migration introduces new types of pollen and allergens to regions that were previously unaffected, presenting new market opportunities for ALK through emerging allergies. The increased length and severity of pollen seasons expand the potential market size for ALK, as more individuals have prolonged and intensified allergy symptoms. Spikes in allergen concentrations can also trigger reactions in a larger segment of the population by exceeding their individual tolerance levels.

This potential opportunity is concentrated in ALK's own operations, it would not be related to specific groups of consumers or end- users, and is expected to happen over the long term. ALK has indirect control over this opportunity which would benefit its own operations. Specific financial effects have not yet been identified.

S4-1

Policies related to consumers and end- users

ALK’s Access to Medicines Policy sets out the company’s ambition to reach more patients. The policy focuses on three key principles: improving quality of life through better treatment options and earlier diagnosis, supporting healthcare systems with training and education on allergy care, and forming partnerships for broader access. The policy is continually reviewed by the ELT to ensure alignment with the overall strategy of the

ALK Group. Reporting is done through ALK's website and annual report, ensuring transparency and accountability.

The oversight, accountability and responsibility for the implementation of ALK's Access to Medicines Policy rests with the Board of Directors, which has delegated this responsibility to the ELT.

The policy covers both people with allergy and healthcare professionals and relates to material impacts related to access treatment and access barriers.

The pharmaceutical industry is heavily regulated, with human rights topics like the right to health and informed consent in clinical trials already embedded in legislation. Therefore, ALK does not have specific consumer policies aligned with the UN Guiding Principles of Business and Human Rights.

External stakeholders with a business- related connection to ALK can report potential human rights impacts through the Alertline ( see G1 on page 89).

S4-2

Processes for engaging with consumers and end- users about impacts

See ESRS 2-SBM2 on pages 39-40.

S4-3

Processes to remediate negative impacts and channels for consumers and end- users to raise concerns

ALK works closely with doctors, pharmacists, and other healthcare professionals to ensure they have the necessary information to advice patients.

Furthermore, ALK’s digital universe empowers people to proactively manage their allergies by offering information and guidance on how to avoid or alleviate symptoms and seek treatment.

In addition to reaching patients through its digital platforms, ALK engages systematically in educational activities, training and dialogue with healthcare professionals to elevate the standard of care in allergy diagnosis and treatment. Much of the engagement is done digitally to enable ALK to reach more healthcare professionals within a shorter time and reduce the climate impact of travelling to physical meetings. ALK’s approach to engaging with healthcare professionals also encompasses collaboration with patient organisations across the globe to raise awareness around patient care and product safety.

In the ongoing efforts to develop innovative, effective treatments for allergies, ALK conducts clinical trials in close collaboration with authorities, healthcare professionals, scientists and, most critically, patients. ALK upholds safety, privacy, ethics and respect through every phase of the clinical trials and adheres to the Principles for Responsible Clinical Trial Data Sharing from the European Federation of Pharmaceutical Industries and Associations (EFPIA) and the Pharmaceutical Research and Manufactures of America (PhRMA). In this way, ALK ensures that clinical trial data is used responsibly and transparently, safeguarding patient privacy and respecting the integrity of national regulatory systems that protect proprietary information.

Rigorous industry regulations ensure that safety data from any source, including clinical trials, healthcare professionals or patients, is collected and analysed systematically by ALK's global pharmacovigilance team. This ensures that the safety profile of the products is optimised for the benefit of the patient and that the relevant authorities can be made aware of any safety issue in order to facilitate immediate action.

Patients are informed of how they can contact ALK to report potential side effects in the leaflets for all products.

External stakeholders with a work- related connection to ALK can raise their concerns through the whistleblower platform ALK Alertline, which is described in detail in G1 on page 89.

S4-4

Taking action on material impacts on consumers and end- users, and approaches to managing material risks and pursuing material opportunities related to consumers and endusers, and effectiveness of those actions

Helping more people with allergies is at the core of ALK’s Allergy+ strategy. ALK will prioritise and focus its commercial activities to strengthen its global leadership in respiratory allergies including targeted expansion of the sublingual immunotherapy tablets to new patient groups and geographies, digital mobilisation and investments in high impact markets.

Information about actions taken, planned and underway to address material impacts and opportunities, according to S4-4, is incorporated by reference to the sections "Strategy progress: Review of Allergy+ implementation", on pages 10-11, and "Expanding the addressable markets" of Business and strategy, on pages 16-17.

S4-5

Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities

ALK aims to help 5 million allergy patients by 2030 to advance its positive impact and opportunity. The target covers ALK’s downstream activities in the countries where ALK operates ( see "ALK at a glance" on page 5).

In 2024, ALK reached an estimated 2.6 million patients in treatment, as a result of its commercial activities.

Although ALK has previously had the need to establish specific external targets, it will assess the potential necessity for additional targets related to access barriers and patient safety in 2025.

ALK has not engaged directly with patients or their representatives on the target setting, but information has been obtained indirectly through market insights.

Number of patients in treatment

Million patients (estimated)

Accounting policies – Social information

The numeric datapoints reported are verified through internal controls, analysis, benchmarks, and regular business meetings. External auditors provide limited assurance on 2024 metrics, but they are not validated by another external body. N/A is used when data was not available at the time of the reporting and could not be retrieved.

Own workforce

Workforce is defined as all ALK employees who are on payroll as of 31 December 2024, both full-time and parttime, as well as active and non-active. The numbers are reported in headcount as of end of reporting period.

S1-6

Characteristics of the undertaking’s employees

Permanent employees are determined as employees whose employment contract is without a specified end-date. Temporary employees are determined as employees whose employment contract is with specified end-date. Non-guaranteed hours employees are determined as employees employed by ALK without a guarantee of a minimum or fixed number of working hours. The employee may need to make themselves available for work as required, but ALK is not contractually obligated to offer the employee a minimum or fixed number of working hours per day, week, or month.

For any employee-related metrics, headcount measures are used. The measures are extracted from the HR systems. The numbers are reported in headcount as of end of reporting period.

For reporting by gender, the following descriptions are used: ’Male’, ‘Female’, and ‘Employee chooses not to self-identify'.

For breaking down per countries, countries with less than 50 employees are classified as ‘other countries’. When reporting by geographical areas, regions are

broken down into North America (USA, Canada), Asia (China, Russia, Jordan, Turkey), and Europe (Denmark, France, Spain, Germany, Poland, Netherlands, Sweden, Slovakia, United Kingdom, Austria, Switzerland, Norway, Italy, Belgium, Czech Republic, Finland, Ireland).

Employee turnover

Employee turnover is defined by the number of employees leaving ALK during the period. The turnover is a total of voluntary and involuntary terminations. The employee turnover ratio is calculated by dividing the number of employees who left ALK by the average number of employees in the reporting year. The employees included in the calculation are all permanent employees and inactive employees on garden leave. Due to local regulations, temporary employees located in Poland and China are also included, as a temporary contract is required before transitioning to permanent status.

S1-16

Remuneration metrics

Gender pay gap (significant estimate)

Gender pay gap is defined as the difference of average base pay levels between male and female employees, relative to the average annual pay of male employees. Average gross annualised earnings are used in this calculation due to limited data availability for hourly pay levels. The use of estimates for this datapoint is considered significant.

CEO annual compensation ratio

CEO annual compensation is determined by the annual total compensation of the CEO against the median annual total compensation for all full-time active (permanent and temporary) employees, excluding the CEO. Annual total compensation includes salary, bonus, allowances, pension, and all one-time payments over the course of a year.

S1-13

Training and skills development metrics

A regular performance review is defined as a review based on criteria known to the employee and his or her superior undertaken with the knowledge of the employee at least once per year. The review can include an evaluation by the employee’s direct superior, peers, or a wider range of employees.

Employee engagement

Participation rate and engagement score are collected from a survey conducted by a third party.

S1-14

Health and safety metrics

Work-related incidents are reported to Global Environment, Health and Safety. Work-related accidents are defined as unplanned events that result in injury, with or without absence. The number of accidents is reported per site on a monthly basis. The rate of work-related accidents is calculated as Lost Time Injury Frequency Rate (LTIFR). It measures the number of accidents with absence multiplied by million, divided by total working hours during a single financial year. A lost-time injury is a work-related injury that results in time lost from work ordered by a medical professional person.

Fatalities are the number of employees who lost their lives as a result of a work-related incident.

Consumers and end- users

Number of patients in treatment (significant estimate)

Due to the absence of comprehensive data sources across all markets, it is not possible to directly and specifically measure the number of patients treated with ALK products. Patient numbers are estimated using various data sources, an in-house Patient Model and insurance claims data, while applying several assumptions, which leads to a certain level of uncertainty. The use of estimates for this datapoint is considered significant.

When a more precise method is not available, units sold ex-factory are converted to treatment years per patient using a treatment years conversion factor. This estimation is adjusted based on market and patient research from various countries, applying an adherence rate and a co-administration rate across products and countries to prevent e.g. double counting patients receiving multiple types of allergy immunotherapy treatments (AIT) simultaneously.

When available, more precise methods are tailored to specific product groups as follows:

For SLIT-drops in most markets, anonymized data and unique patients counted based on prescription data are used.

For SLIT-tablets in most markets, data is based on the in-house Patient Model. The Patient Model uses in-market units sales data and where possible new patient data to convert to patients in treatment. Actual in-market sales and patient data are used for two-thirds of the year, while the remaining portion is forecasted. A co-administration rate is applied to tablet patients.

In North America, ALK sells bulk allergen extracts to healthcare professionals who prepare the allergy shots using various and unspecified dosing schedules. To estimate the number of patients receiving AIT, a commercial claims database is used. Extrapolation of the patient number to USA population is done using the ratio of database coverage to the total USA population. To obtain the number of patients on AIT, an estimated market share is applied. Given that commercial claims data have a 14-16-month time lag, the extrapolation to the current year is done by applying a discounted revenue growth from the time of data extraction to the current year.

For the Auto Adrenaline Injector (AAI), following official recommendations, the number of sold pens is divided by 2 to reflect the assumption that each patient carries two pens at a time.

Governance information

G1 Business conduct

Impacts, risks and opportunities

Animal Welfare

ESRS 2-SBM3

Material impacts, risks and opportunities and their interaction with strategy and business model

Impact

Animal welfare

When developing new treatments, ALK conducts tests on animals to ensure that patients receive safe and effective medicines. ALK only uses animals for research purposes when alternative models do not provide the data necessary to evaluate the treatment. ALK conducts regular experiments on animals through allergen injections on mice in its own internal R&D facilities. Within ALK's own operations, the negative impact on the animals

is from the injections, and also from keeping them in captivity and euthanising them after the experiments are finished. This impact occurs over the short, medium and long term.

To mitigate this impact, ALK selects professional, wellrecognised and accredited suppliers, adhering to the guidelines from the Federation of European Laboratory Animal Science Associations (FELASA).

G1-1

Business conduct policies and corporate culture

Animal welfare

ALK ensures compliance with local regulations related to animal welfare. As a result, ALK has not previously identified the need for a centralised global policy on animal welfare. However, it is in the process of developing a global animal welfare policy scheduled for implementation by 2025, which will be approved by the governance bodies.

Corruption and bribery

ESRS 2-SBM3

Material impacts, risks and opportunities and their interaction with strategy and business model

Risk

Potential bribery of healthcare professionals

The pharmaceutical industry faces risks associated with bribery and corruption, particularly in the context of employees’ interactions with healthcare professionals (HCPs). The main risk of corrupt behaviour for ALK concerns potential bribery of healthcare professionals, i.e., using improper influence over HCPs to increase ALK’s sales and cash flow.

An incident of such corrupt behaviour could have significant legal, reputational and financial repercussions. This risk arises in ALK’s downstream value chain over the short term. There are no current financial effects, nor any significant risk of material adjustment for next year. This risk is mitigated through the regular training of all employees on ALK’s Code of Conduct.

G1-1

Business conduct policies and corporate culture Code of Conduct

ALK's approach to business conduct is grounded in a comprehensive framework of policies centred on its Code of Conduct. The Code of Conduct, applicable to all ALK employees, sets the tone for business integrity and ALK’s ethical principles. It affirms ALK's commitment to upholding human rights, safeguarding confidential business information, and promoting zero- tolerance for corruption and fraud. The Executive Leadership Team (ELT) is responsible for oversight of the Code of Conduct.

ALK has not developed specific global policies on business conduct training, as the ALK Policy for Anti-Corruption already includes a general commitment to train employees, and business conduct training is administered in practice ( see "Training and awareness" on page 90).

ALK’s Code of Conduct is complemented by additional policies on business conduct matters, which also apply to all ALK employees and are publicly accessible on the ALK website.

Whistleblowing Policy

The Code of Conduct is supplemented by specific policies, such as the Whistleblowing Policy, which defines the organisation and processes in place to ensure that ethical concerns are treated seriously and appropriately; it includes the standards for investigating such cases and protecting whistleblowers. The policy includes a non- retaliation commitment to protect any employee or stakeholder who raises a concern in good faith.

The ALK Audit Committee has the overall responsibility for the Whistleblowing Policy, and for reviewing the effectiveness of actions taken in response to concerns raised under the policy. The Corporate Affairs & Legal department has day- to-day operational responsibility for the policy.

Policy for Anti-Corruption

With regard to the risk of potential bribery of healthcare professionals, the ALK Policy for Anti-Corruption addresses compliance with general anti- bribery and anti- corruption legislation, as well as industry- specific standards covering interactions with healthcare

professionals. It is consistent with the United Nations Convention against Corruption.

The Board of Directors is responsible for ensuring that the policy complies with applicable laws, while managers are responsible for implementing the policy at all levels.

Third-Party Code of Conduct

In parallel with this, expectations for business partners are outlined in the Third-Party Code of Conduct, which applies to ALK’s upstream and downstream value chain. ALK’s Whistleblowing Policy also applies to external stakeholders.

Details on the Third-Party Code of Conduct are provided in S2-1 on pages 81-82.

ESRS G1

Channels to raise concerns

ALK Alertline

ALK has established a whistleblowing system: ALK Alertline, which is accessible to internal and external stakeholders. The company's own workforce, value chain workers and other external stakeholders with a work- related connection to ALK can use the ALK Alertline to raise and report serious and sensitive concerns, including reasonable suspicions of breaches of ALK’s Code of Conduct, anticorruption laws, and laws within the scope of the EU Whistleblower Protection Directive.

ALK Alertline is confidential and offers the option of anonymous reporting, as a protective measure against retaliation. Available by phone or online in eight languages, ALK Alertline is accessible via ALK's intranet and on its public websites.

Reports are entered directly into an independent company’s secure server. Corporate Affairs & Legal manages the access, and the reports are made available only to preappointed individuals within ALK who are responsible for evaluating reports.

The monitoring and tracking of registered reports are described below under G1-3 on page 89.

The non- retaliation commitment is specified under G1-1 on page 88.

ALK assesses awareness and trust in the processes for raising concerns by including questions in the annual engagement survey about employees' confidence in ALK addressing serious misconduct and the importance managers place on employee wellbeing.

In addition to ALK Alertline, employees are encouraged to speak up and raise any concerns through ordinary management channels. ALK launched manager training in 2024 on how to recognise and respond to whistleblower reports. This training includes a section stressing reporter protections, including against retaliation.

Whistleblowing and anti- corruption system

Incidents of bribery and corruption

Convictions for violation of anti- corruption and bribery laws #

for corruption and bribery convictions

G1-3

Prevention and detection of corruption and bribery

G1-4

Incidents of corruption or bribery

ALK takes a zero- tolerance approach to corruption and bribery. In addition to ALK Alertline, financial control systems act to prevent and detect any corruption and bribery events.

Should an allegation of corruption or bribery be made through ALK Alertline, the ensuing investigation is governed by ALK’s Compliance Investigations Process. Each case is overseen by an investigation supervisor. This may be the Vice President, Corporate Affairs & Legal or their designee, usually within the Legal or Compliance functions. Where appropriate due to specific allegations in a report, an investigation supervisor independent from the chain of management will oversee the case: either

external legal counsel, or the Chair of the Audit Committee.

The Chair of the Audit Committee is notified of reports concerning corruption and is responsible for deciding whether to approve case recommendations. Corporate Affairs & Legal also updates the Audit Committee on an annual basis on all ALK Alertline activities for the past year.

In 2024, ALK had no convictions or related fines for violations of anti- corruption and anti- bribery laws.

Training and awareness

G1-3

Prevention and detection of corruption and bribery

G1-4

Incidents of corruption or bribery

Training and awareness activities are essential for fostering a culture of integrity and creating a common understanding of what is expected from ALK’s employees.

All new hires are required to confirm that they agree to act in accordance with the Code of Conduct. Online training on the Code of Conduct is also rolled out annually for all employees. It includes all ELT members and ALK employee representatives serving on the Board of Directors.

The training covers relevant business conduct topics including anti- corruption, ALK Alertline, communications, promotion & social media,

competition law, conflicts of interest, political contributions, human rights, interaction with healthcare professionals, IT security, patient safety, and data privacy.

Employees who interact directly with healthcare professionals have been identified as being at higher risk with regard to corruption and bribery. In ALK, these are to be found in commercial operations and medical affairs functions. Among ALK employees in such functions, 99% completed the global Code of Conduct e- learning course in 2024. Additional targeted training is offered at local level to these employees in these functions, to cover specific compliance matters such as promotional activities and interactions with healthcare professionals. As 2024 is the first year of reporting of functions-at-risk, ALK does not have a specific target on completion rate of functions-at-risk Code of Conduct training.

Incidents, complaints and severe human rights impacts

ALK Alertline and human rights incidents

ALK Alertline

Work- related discrimination reports registered on Alertline

Reports of other work- related complaints

Amount of fines, penalties and compensation for damages as a result of work- related complaints

Severe human rights incidents

Severe human rights incidents

Amount of fines, penalties, and compensation for damages for severe human rights incidents

In 2024, ALK was not liable for any fines, penalties, or compensation for damages as a result of work-related Alertline reports or severe human rights incidents. Therefore, no related amounts have been accounted for in the financial statements.

Accounting policies – Governance information

The numeric datapoints reported are verified through internal controls, analysis, benchmarks, and regular business meetings. External auditors provide limited assurance on 2024 metrics, but they are not validated by another external body.

Business conduct

S1-17

Incidents, complaints and severe human rights impacts

ALK Alertline is the company’s whistleblower system, which can be used to report serious and sensitive concerns - including serious offenses against persons such as discrimination.

Work-related complaints and reports refer to allegations registered on Alertline which involve ALK’s own workforce. Severe human rights incidents refer to substantiated incidents of human rights violations pertaining to ALK’s own workforce.

Fines, penalties and compensation for damages are “as a result” of allegations and complaints only when such allegations and complaints are substantiated and undisputed. They are reported in the reporting year when they are imposed and final (i.e., the amount is no longer under appeal or in dispute).

G1-4

Corruption and bribery

Bribery can take the form of money, gifts, loans, fees, hospitality, services, discounts, the award of a contract or any other advantage or benefit, and it comprises any financial or other inducement or reward for an action which is illegal, unethical, a breach of trust or improper in any way. Corruption is defined as abuse of entrusted power by someone for personal gain.

For purposes of the reporting, convictions in scope are final decisions or acts by courts of law, which constitute criminal convictions under applicable local law in the jurisdiction where the decision or act takes place. As required by the ESRS, only convictions where ALK or its employees are directly involved are considered within scope. Fines relating to such convictions are reported in the reporting year when they are imposed and final (i.e., no longer under appeal or in dispute).

G1-3

Prevention and detection of corruption and bribery

“Percent of functions at risk covered by training programs” refers to the percentage of Code of Conduct e-learning completion for employees in commercial operations or medical affairs. The Code of Conduct e-learning course was rolled out between March and May 2024.

96 Content index of ESRS disclosure requirements

99 List of datapoints that derive from other EU legislation

Incorporation by reference

The table below provides an overview of information incorporated by reference as part of other sections of this annual report, by stating the datapoint code beneath the relevant header, which remains applicable until the next header of the same level. When the datapoint applies to a specific part of a section, the datapoint code is cited in a footnote.

ESRS 2-BP2 Disclosures in relation to specific circumstances

ESRS 2-GOV1 The role of the administrative, management and supervisory bodies

ESRS 2-BP2-16 Incorporation by reference 92-93

ESRS 2-GOV1-21a Corporate governance 28-29

ESRS 2-GOV1-21b Corporate governance 28-29

ESRS 2-GOV1-21c Board of Directors 33-34

ESRS 2-GOV1-21d Corporate governance 28-29

ESRS 2-GOV1-21e Corporate governance 28-29

ESRS 2-GOV1-23 Corporate governance 29

ESRS 2-GOV1-23a Corporate governance 29

ESRS 2-GOV1-23b Corporate governance 29

ESRS 2-GOV3 Integration of sustainabilityrelated performance in incentive schemes All data points Corporate governance 30

ESRS 2-GOV4 Statement on due diligence ESRS 2-GOV4-32 Core elements of due diligence 94-95

Disclosure

Requirement code Disclosure Requirement name Datapoint code Disclosed in section Disclosed on page

ESRS 2-SBM1 Strategy, business model and value chain

ESRS 2-SBM1-40 Sales and market trends 19

ESRS 2-SBM1-40a.i Sales and market trends 19

ESRS 2-SBM1-40a.ii Sales and market trends 19

ESRS 2-SBM1-40a.iii ALK at a glance 5

ESRS 2-SBM1-40e Introduction to Allergy+ 9

ESRS 2-SBM1-40f Sales and market trends 19

ESRS 2-SBM1-40g Expanding the addressable markets 16-17

ESRS 2-SBM1-42 Business model 6

ESRS 2-SBM1-42a Business model 6

ESRS 2-SBM1-42b Business model 6

ESRS 2-SBM1-42c Business model 6

ESRS 2-IRO2 Disclosure Requirements in ESRS covered by the undertaking’s sustainability statement

E1-GOV3 Integration of sustainabilityrelated performance in incentive schemes

E1-3 Actions and resources in relation to climate change policies

ESRS 2-IRO2-56 Content index of ESRS disclosure requirements; List of datapoints that derive from other EU legislation 96-105

E1-GOV3-13 Corporate governance 30

E1-3-29c.i Income statement 107; 123

Disclosure

S1-6 Characteristics of the undertaking’s employees S1-6-50f Staff costs 116

S4-4

Taking action on material impacts on consumers and end- users, and approaches to managing material risks and pursuing material opportunities related to consumers and end-users, and effectiveness of those actions

G1-GOV1 The role of the administrative, management and supervisory bodies

All data points Strategy progress; Expanding the addressable markets 10-11; 16-17

Phased-in Disclosure Requirements

G1-GOV1-5a Corporate governance 29

G1-GOV1-5b Corporate governance 29

Disclosure Requirement / Datapoint code Disclosure Requirement / Datapoint name

ESRS 2-SBM3-48e Anticipated financial effects

E1-9 Anticipated financial effects from material physical and transition risks and potential climate- related opportunities

S1-7 Characteristics of non- employees in the undertaking’s own workforce

S1-13-83b Average training time per employee and by gender

S1-14-88d Cases of work-related illness

S1-14-88e Lost time due to work-related injuries, fatalities and illness

Core elements of due diligence

The table below maps the core elements of ALK's due diligence process, cross-referencing the impacts on people and the environment with the relevant disclosures in the sustainability statement.

ESRS 2-GOV4

Statement on due diligence

Core elements of Due Diligence

a) Embedding due diligence in governance, strategy and business model

Pages in the sustainability statement

Does the disclosure relate to people and/or the environment?

ESRS 2 GOV-2, pages 37-38 People and environment

ESRS 2 GOV-3, pages 38 People and environment

ESRS 2 SBM-3, pages 44-48 People and environment

ESRS 2 SBM-3-E1, page 50

ESRS 2 SBM-3-E2, page 56

ESRS 2 SBM-3-E3, page 58

ESRS 2 SBM-3-E4, page 61

ESRS 2 SBM-3-E5, pages 63-64

ESRS 2 SBM-3-S1, pages 74-75; 79

ESRS 2 SBM-3-S2, page 81

ESRS 2 SBM-3-S4, pages 83-84

Environment

People

ESRS 2 SBM-3-G1, pages 87-88 People and environment

Core elements of Due Diligence

b) Engaging with affected stakeholders in all key steps of the due diligence

Pages in the sustainability statement

Does the disclosure relate to people and/or the environment?

ESRS 2 GOV-2, pages 37-38 People and environment

ESRS 2 SBM-2, pages 39-40 People and environment

ESRS 2 IRO-1, pages 41-43 People and environment

ESRS 2 MDR-P:

E1-2, page 51

E2-1, page 57

E3-1, page 59

E4-2, page 62

E5-1, page 64

ESRS 2 MDR- P:

S1-1, pages 75; 79

S2-1, pages 81-82

S4-1, page 84

S1-2, pages 75-76

S2-2, page 82

S4-2, page 84

Environment

People

People

Core elements of Due Diligence

c) Identifying and assessing adverse impacts

Pages in the sustainability statement

Does the disclosure relate to people and/or the environment?

ESRS 2 IRO-1, pages 41-43 People and environment

ESRS 2 SBM-3, pages 44-48 People and environment

ESRS 2 SBM-3-E1, page 50

ESRS 2 SBM-3-E2, page 56

ESRS 2 SBM-3-E3, page 58

ESRS 2 SBM-3-E4, page 61

ESRS 2 SBM-3-E5, pages 63-64

ESRS 2 SBM-3-S1, pages 74-75; 79

ESRS 2 SBM-3-S2, page 81

ESRS 2 SBM-3-S4, pages 83-84

d) Taking actions to address those adverse impacts

Environment

People

ESRS 2 SBM-3-G1, pages 87-88 People and environment

ESRS 2 MDR-A:

E1-3, page 51

E2-2, page 57

E3-2, page 59

E4-3, page 62

E5-2, page 64

ESRS 2 MDR-A:

S1-4, pages 76; 80

S2-4, page 82

S4-4, page 85

E1-1, page 49

E4-1, page 61

G1-1, pages 87-88

G1-3, pages 89-90

Environment

People

Environment

People and environment

Core elements of Due Diligence Pages in the sustainability statement

e) Tracking effectiveness of these efforts and communicating

ESRS 2 MDR-M:

E1-5, page 55

E1-6, pages 53-54

E2-5, page 57

E3-4, page 60

E5-4, page 65

E5-5, pages 65-66

ESRS 2 MDR-M:

S1-13, page 78

S1-14, page 80

S1-16, page 78

Does the disclosure relate to people and/or the environment?

Environment

S1-17, pages 80; 90 People

G1-4, pages 89-90 People and environment

E1-4, page 52

E2-3, page 57

E3-3, page 60

E4-4, page 62

E5-3, page 65

S1-5, page 76

S2-5, page 82

S4-5, page 85

Environment

People

Content index of ESRS disclosure requirements

The table below presents the disclosure requirements from ESRS 2 and the nine topical standards relevant to ALK and indicates where to find information related to each specific requirement.

ESRS 2-IRO2

Disclosure Requirements in ESRS covered by the undertaking’s sustainability statement

ESRS 2 General Disclosures

BP-1 General basis for preparation of the sustainability statement 36

BP-2 Disclosures in relation to specific circumstances 36; 54; 60; 78; 85; 92-93

GOV-1 The role of the administrative, management and supervisory bodies 28-29; 33-34; 37-38

GOV-2 Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies 37-38

GOV-3 Integration of sustainability- related performance in incentive schemes 30; 38

GOV-4 Statement on due diligence 38; 94-95

GOV-5 Risk management and internal controls over sustainability reporting 38

SBM-1 Strategy, business model and value chain 5; 6; 9; 16-17; 19; 39

SBM-2 Interests and views of stakeholders 39-40 ; 41-43

SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model 44-48; 50; 56; 58; 61; 63; 74-75; 79; 81; 83-84; 87-88

IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities 41-43

IRO-2 Disclosure Requirements in ESRS covered by the undertaking’s sustainability statement 42; 48; 96-105 List of material Disclosure Requirements

E1 Climate change

ESRS 2

E1-1 Transition plan for climate change mitigation

ESRS 2

SBM-3-E1 Material impacts, risks and opportunities and

49; 51

E2 Pollution

S1-4 Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions

S1-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities

S1-6 Characteristics of the undertaking’s employees 77; 116

S1-13 Training and skills development metrics

S1-14 Health and safety metrics

S1-16 Remuneration metrics (pay gap and total remuneration)

S1-17

S2 Workers in the value chain

ESRS 2

SBM-3-S2 Material impacts, risks and opportunities and their interaction with strategy and business model

S2-1 Policies related to value chain workers 81-82

S2-2 Processes for engaging with value chain workers about impacts 82

S2-3 Processes to remediate negative impacts and channels for value chain workers to raise concerns 82; 88-89

S2-4 Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing material opportunities related to value chain workers, and effectiveness of those actions 82; 90

S2-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 82

S4 Consumers and End- users

ESRS 2

SBM-2-S4 Interests and views of stakeholders 39-40

ESRS 2

SBM-3-S4 Material impacts, risks and opportunities and their interaction with strategy and business model 83-84

S4-1 Policies related to consumers and end- users 84; 88-89

S4-2 Processes for engaging with consumers and end- users about impacts 39-40; 84

S4-3 Processes to remediate negative impacts and channels for consumers and end- users to raise concerns 85; 88-89

S4-4 Taking action on material impacts on consumers and end- users, and approaches to managing material risks and pursuing material opportunities related to consumers and end- users, and effectiveness of those actions 10-11; 16-17; 85

S4-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 85

G1 Business Conduct

ESRS 2

SBM-3-G1 Material impacts, risks and opportunities and their interaction with strategy and business model 87-88

ESRS 2

GOV-1-G1 The role of the administrative, management and supervisory bodies 29

ESRS 2

IRO-1-G1 Description of the processes to identify and assess material impacts, risks and opportunities 42

G1-1 Business conduct policies and corporate culture 81-82; 87-88; 90

G1-3 Prevention and detection of corruption and bribery 89-90

G1-4 Incidents of corruption or bribery 89-90

List of datapoints that derive from other EU legislation

The table below includes all the ESRS datapoints that derive from other EU legislation and indicates where the information can be found if deemed material.

ESRS 2 GOV-1

Board's gender diversity paragraph 21 (d)

ESRS 2 GOV-1

Percentage of board members who are independent paragraph 21 (e)

ESRS 2 GOV-4

Statement on due diligence paragraph 30

ESRS 2 SBM-1

Involvement in activities related to fossil fuel activities paragraph 40 (d) i

Indicator number 13 of Table #1 of Annex 1

Commission Delegated Regulation (EU) 2020/1816, Annex II

Delegated Regulation (EU) 2020/1816, Annex II

Indicator number 10

Table #3 of Annex 1

Indicators number 4

Table #1 of Annex 1

ESRS 2 SBM-1

Involvement in activities related to chemical production paragraph 40 (d) ii

ESRS 2 SBM-1

Involvement in activities related to controversial weapons paragraph 40 (d) iii

ESRS 2 SBM-1

Involvement in activities related to cultivation and production of tobacco paragraph 40 (d) iv

Indicator number 9

Table #2 of Annex 1

Indicator number 14

Table #1 of Annex 1

Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453

Table 1: Qualitative information on Environmental risk and Table 2: Qualitative information on Social risk

Delegated Regulation (EU) 2020/1816, Annex II Not material

Delegated Regulation (EU) 2020/1816, Annex II Not material

Delegated Regulation (EU) 2020/1818, Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II

Delegated Regulation (EU) 2020/1818, Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II Not material

ESRS E1-1

Transition plan to reach climate neutrality by 2050 paragraph 14

ESRS E1-1

Undertakings excluded from Paris- aligned Benchmarks paragraph 16 (g)

ESRS E1-4

GHG emission reduction targets paragraph 34

ESRS E1-5

Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors) paragraph 38

ESRS E1-5

Energy consumption and mix paragraph 37

ESRS E1-5

Energy intensity associated with activities in high climate impact sectors paragraphs 40 to 43

ESRS E1-6

Gross Scope 1, 2, 3 and Total GHG emissions paragraph 44

Indicator number 4

Table #2 of Annex 1

Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453

Template 1: Banking book-Climate Change transition risk: Credit quality of exposures by sector, emissions and residual maturity

Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453

Template 3: Banking book – Climate change transition risk: alignment metrics

Delegated Regulation (EU) 2020/1818, Article12.1 (d) to (g), and Article 12.2

Delegated Regulation (EU) 2020/1818, Article 6

(EU) 2021/1119, Article 2(1)

ESRS E1-6

Gross GHG emissions intensity paragraphs 53 to 55

Indicator number 5

Table #1 and Indicator n. 5

Table #2 of Annex 1

Indicator number 5

Table #1 of Annex 1

number 6

Table #1 of Annex 1

Indicators number 1 and 2 Table #1 of Annex 1

Article 449a; Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453

Template 1: Banking book – Climate change transition risk: Credit quality of exposures by sector, emissions and residual maturity

Indicators number 3

Table #1 of Annex 1

Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453

Template 3: Banking book – Climate change transition risk: alignment metrics

Delegated Regulation (EU) 2020/1818, Article 5(1), 6 and 8(1)

Delegated Regulation (EU) 2020/1818, Article 8(1)

ESRS E1-7

GHG removals and carbon credits paragraph 56

ESRS E1-9

Exposure of the benchmark portfolio to climaterelated physical risks paragraph 66

ESRS E1-9

Disaggregation of monetary amounts by acute and chronic physical risk paragraph 66 (a)

ESRS E1-9

Location of significant assets at material physical risk paragraph 66 (c).

ESRS E1-9

Breakdown of the carrying value of its real estate assets by energy- efficiency classes paragraph 67 (c).

ESRS E1-9

Degree of exposure of the portfolio to climate- related opportunities paragraph 69

ESRS E2-4

Amount of each pollutant listed in Annex II of the E-PRTR Regulation (European Pollutant Release and Transfer Register) emitted to air, water and soil, paragraph 28

Indicator number 8

Table #1 of Annex 1

Indicator number 2

Table #2 of Annex 1

Indicator number 1

Table #2 of Annex 1

Indicator number 3

Table #2 of Annex 1

Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453

paragraphs 46 and 47; Template 5: Banking book - Climate change physical risk: Exposures subject to physical risk.

Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453

paragraph 34; Template 2:Banking book -Climate change transition risk: Loans collateralised by immovable property - Energy efficiency of the collateral

Delegated Regulation (EU) 2020/1818, Annex II

Delegated Regulation (EU) 2020/1816, Annex II

Regulation (EU) 2021/1119, Article 2(1)

Not material

Phase- in

Phase- in

Phase- in

Delegated Regulation (EU) 2020/1818, Annex II

Phase- in

Not material

ESRS E3-1

Water and marine resources paragraph 9

ESRS E3-1

Dedicated policy paragraph 13

ESRS E3-1

Sustainable oceans and seas paragraph 14

ESRS E3-4

Total water recycled and reused paragraph 28 (c)

ESRS E3-4

Indicator number 7

Table #2 of Annex 1

Indicator number 8

Table 2 of Annex 1

Indicator number 12

Table #2 of Annex 1

Indicator number 6.2

Table #2 of Annex 1

Total water consumption in m 3 per net revenue on own operations paragraph 29 Indicator number 6.1

ESRS 2- SBM 3 - E4 paragraph 16 (a) i

ESRS 2- SBM 3 - E4 paragraph 16 (b)

ESRS 2- SBM 3 - E4 paragraph 16 (c)

ESRS E4-2

Sustainable oceans / seas practices or policies paragraph 24 (c)

ESRS E4-2

Sustainable oceans / seas practices or policies paragraph 24 (c)

ESRS E4-2

material

Table #2 of Annex 1

number 7

Table #1 of Annex 1

Indicator number 10

Table #2 of Annex 1

number 14 Table #2 of Annex 1

number 11

#2 of Annex 1

number 12 Table #2 of Annex 1

Policies to address deforestation paragraph 24 (d) Indicator number 15

ESRS E5-5

Non- recycled waste paragraph 37 (d)

ESRS E5-5

Table #2 of Annex 1

Indicator number 13

Table #2 of Annex 1

Hazardous waste and radioactive waste paragraph 39 Indicator number 9 Table #1 of Annex 1

ESRS 2- SBM3 - S1

Risk of incidents of forced labour paragraph 14 (f)

ESRS 2- SBM3 - S1

Risk of incidents of child labour paragraph 14 (g)

Indicator number 13

Table #3 of Annex I

Indicator number 12

Table #3 of Annex I

material

ESRS S1-1

Human rights policy commitments paragraph 20

ESRS S1-1

Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8, paragraph 21

ESRS S1-1

processes and measures for preventing trafficking in human beings paragraph 22

ESRS S1-1

workplace accident prevention policy or management system paragraph 23

ESRS S1-3

grievance/complaints handling mechanisms paragraph 32 (c)

ESRS S1-14

Number of fatalities and number and rate of workrelated accidents paragraph 88 (b) and (c)

ESRS S1-14

Number of days lost to injuries, accidents, fatalities or illness paragraph 88 (e)

ESRS S1-16

Unadjusted gender pay gap paragraph 97 (a)

ESRS S1-16

Excessive CEO pay ratio paragraph 97 (b)

ESRS S1-17

Incidents of discrimination paragraph 103 (a)

ESRS S1-17

Non- respect of UNGPs on Business and Human Rights and OECD paragraph 104 (a)

Indicator number 9

Table #3 and

Indicator number 11

Table #1 of Annex I

Indicator number 11

Table #3 of Annex I

Indicator number 1

Table #3 of Annex I

Indicator number 5

Table #3 of Annex I

Indicator number 2

Table #3 of Annex I

Indicator number 3

Table #3 of Annex I

Indicator number 12

Table #1 of Annex I

Indicator number 8

Table #3 of Annex I

Indicator number 7

Table #3 of Annex I

Indicator number 10

Table #1 and Indicator n. 14 Table #3 of Annex I

Delegated Regulation (EU) 2020/1816, Annex II

Delegated Regulation (EU) 2020/1816, Annex II

Delegated Regulation (EU) 2020/1816, Annex II

Delegated Regulation (EU) 2020/1816, Annex II

Delegated Regulation (EU) 2020/1818 Art 12 (1)

ESRS 2- SBM3 – S2

Significant risk of child labour or forced labour in the value chain paragraph 11 (b)

ESRS S2-1

Human rights policy commitments paragraph 17

ESRS S2-1

Policies related to value chain workers paragraph 18

ESRS S2-1

Non- respect of UNGPs on Business and Human Rights principles and OECD guidelines paragraph 19

ESRS S2-1

Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8, paragraph 19

ESRS S2-4

Human rights issues and incidents connected to its upstream and downstream value chain paragraph 36

ESRS S3-1

Human rights policy commitments paragraph 16

Indicators number 12 and n. 13 Table #3 of Annex I

Indicator number 9

Table #3 and

Indicator n. 11 Table #1 of Annex 1

Indicator number 11 and n. 4 Table #3 of Annex 1

Indicator number 10

Table #1 of Annex 1

Delegated Regulation (EU) 2020/1816, Annex II

Delegated Regulation (EU) 2020/1818, Art 12 (1)

Delegated Regulation (EU) 2020/1816, Annex II

Indicator number 14

Table #3 of Annex 1

Indicator number 9

Table #3 of Annex 1 and Indicator number 11 Table #1 of Annex 1 Not material

ESRS S3-1

non- respect of UNGPs on Business and Human Rights, ILO principles or and OECD guidelines paragraph 17

ESRS S3-4

Human rights issues and incidents paragraph 36

Indicator number 10

Table #1 Annex 1

Delegated Regulation (EU) 2020/1816, Annex II

Delegated Regulation (EU) 2020/1818, Art 12 (1) Not material

Indicator number 14

Table #3 of Annex 1 Not material

ESRS S4-1

Policies related to consumers and end- users paragraph 16

ESRS S4-1

Non- respect of UNGPs on Business and Human Rights and OECD guidelines paragraph 17

Indicator number 9

Table #3 and

Indicator number 11

Table #1 of Annex 1

Indicator number 10

Table #1 of Annex 1

ESRS S4-4

Human rights issues and incidents paragraph 35

ESRS G1-1

United Nations Convention against Corruption paragraph 10 (b)

ESRS G1-1

Protection of whistle- blowers paragraph 10 (d)

ESRS G1-4

Fines for violation of anti- corruption and anti- bribery laws paragraph 24 (a)

ESRS G1-4

Standards of anti- corruption and anti- bribery paragraph 24 (b)

Indicator number 14

Table #3 of Annex 1

Indicator number 15

Table #3 of Annex 1

Indicator number 6

Table #3 of Annex 1

Indicator number 17

Table #3 of Annex 1

Indicator number 16

Table #3 of Annex 1

Delegated Regulation (EU) 2020/1816, Annex II

Delegated Regulation (EU) 2020/1818, Art 12 (1)

material

material

material

Delegated Regulation (EU) 2020/1816, Annex II)

Annual report 2024

Driven by our purpose

Advance sustainable healthcare to meet people’s changing needs

In a constantly evolving world, the needs and expectations for health and safety are continuously advancing.

This is driven by a fundamental and unwavering desire for optimal health and safety conditions.

Our comprehensive range of healthcare services reflects our commitment to supporting more people globally in living healthy lives.

This is Falck

We deliver healthcare services designed to supplement and support established healthcare systems.

Providing care Health for all

Our preventive, acute and rehabilitative healthcare services are delivered through longterm contracts, subscriptions and pay-on-use.

We deliver individual care to private consumers and through corporations and insurance companies. Within societal care, we support governmental institutions and authorities.

Financial highlights

In 2024, Falck delivered organic revenue growth and improved EBIT before special items while still increasing its investments in digitalisation and development of new healthcare solutions.1

New earnings metric and segmentation in the Annual Report 2024

Since 2005, Falck has applied EBITA as the primary earnings metric for commentary in its quarterly and annual reporting. With the Annual Report 2024, this has been changed to EBIT before special items (b.s.i.). This change is intended to provide a clearer picture of Falck's underlying business performance and align with industry practices of companies that share similar characteristics with Falck.

Falck has also updated its business segmentation within Europe and the Americas. This has been done with the introduction of Individual Care and Societal Care, thereby creating a consistent approach between the two regions and aligning to organisational changes in 2024. For details on changes to the segmentation, please refer to Note 2.1, Segment and revenue information on page 103 of this report.

1.0%

Revenue increased, driven by solid growth in the Americas and Individual Care Europe, but offset by

revenue in primarily Societal Care Europe.

Free cash flow after tax was an inflow of DKK 231 million (inflow of DKK 311 million), corresponding to a cash conversion rate of 43.2%.

%

EBIT before special items reached DKK 533 million (DKK 439 million). Operational efficiencies and price increases more than compensated for salary inflation and increased investments in digitalisation. EBIT margin before special items was 4.4%.

Profit for the year was DKK 116 million (DKK 334 million). Net financial expenses and in particular income taxes were higher than in the previous year.

Falck runs business operations in the regions Europe and the Americas. The largest share of revenue is generated in Europe.

Group unallocated costs amounted to DKK 562 million in 2024.

Sustainability highlights

In 2024, Falck delivered 9.5 million healthcare services, reduced CO2 emissions (scope 1) by 3.1% and achieved approval of science-based emission reduction targets. The employee engagement exceeded the 2025 target and the gender diversity target for Senior Management was met.

Reduced CO2 emissions (scope 1)

Code of Conduct training increased

The number of employees completing the Code of Conduct training reached 91%, up by 10 percentage points. 44,782

CO2 emissions (scope 1) were reduced by 7.8% from the baseline year 2022. The measured CO2 emissions accounted for 44,782 tonnes, down by 3.1% from last year. The scope 1 emission target (50% of scope 1 emissions by 2030) has been revised and replaced by new near-term (10-year) science-based targets.

In total, 9.5 million healthcare services were delivered across preventative, acute and rehabilitative measures, up from 9.4 million last year, and at high stable level.

%

Approval of science-based targets

The Science Based Targets initiative approved Falck’s new near-term (10-year) science-based reduction targets, thereby extending the reduction commitment to the entire value chain.

Since 2019, we have been participants of the UN Global Compact, and have committed to the Ten Principles on Human

Labour, Environment and Anti-Corruption. In addition to this report, we disclose our progress in the new database for UN Communication on

Baseline year: 2022

Own workforce Increased employee engagement eSat

The engagement score (eSat) reached a recordhigh level of 76, thereby exceeding the 2025 target of 75. The target has therefore been revised to 76 for 2025.

Increased gender diversity, Senior Management

%

At Senior Management level, 40% of the underrepresented gender was represented, thereby fulfilling the target of 40% by 2025.

Five-year summary

Comments

See definitions of key figures and ratios in note 1.4 of the consolidated financial statements.

In 2020, 2021 and 2022, revenue and EBIT b.s.i. were materially impacted by extraordinary high income and profit from the public COVID-19 testing activities. Revenue from the public testing activities amounted to DKK 164 million in 2020, DKK 3,456 million in 2021 and DKK 617 million in 2022. EBIT b.s.i. amounted to DKK 97 million in 2020, DKK 1,229 million in 2021 and DKK 200 million in 2022.

1) EBIT before special items (EBIT b.s.i.) is defined as operating profit (EBIT) before impairment of goodwill, gains/losses from divestments of enterprises and other non-recurring income and expenses (special items)

2) In 2024, it has been decided to include leasing instalments in free cash flow. The comparative figures have been restated accordingly

3) For 2020, the leverage is excluding the impact of IFRS 16 implementation

4) For 2021, the leverage includes full-year impact from Frisk Gruppen

5) For 2023, the leverage includes full-year impact from MedConnect A/S

6) For 2024, the leverage includes full-year impact from Asistencia Médica S.A.S. and Servicio de Asistencia

Letter from the Chair and the CEO

Falck achieves organic revenue growth and delivers on key strategic priorities

We are pleased to report another year of progress and results in line with expectations. For the financial year 2024, Falck generated revenue of DKK 12,134 million and EBIT before special items of DKK 533 million. The business operations in Europe and the Americas achieved combined organic revenue growth of 1.0%.

During the year, we progressed on the digitalisation of Falck, bolstered innovation within healthcare at home and advanced on our sustainability targets.

In 2024, our more than 25,000 colleagues located across 25 countries delivered 9.5 million healthcare services. This number demonstrates that we are making a strong health impact for many people on a daily basis.

We do so whenever we dispatch an ambulance to a traffic accident, provide a trained psychologist for someone affected by stress or conduct a session with a physiotherapist to help with a back injury.

We expect that the commercial market for such healthcare services will continuously grow above GDP growth in our stronghold markets, driven by ageing populations and other megatrends.

Overall, we are looking into a promising opportunity to advance Falck as a healthcare company – and we are already making considerable progress on our ambitions.

Strategic ambitions with Care for More ’27

During the period 2018-2022, Falck completed a turnaround with large-scale divestments of non-core business activities. Concurrently, Falck launched a corporate strategy with the stated goal of becoming a healthcare company, capable of supplementing healthcare systems and collaborating as a partner.

The year 2024 was another year of progress on our strategic direction, building on the achievements of previous years. Compared to a few years ago, we stand stronger and more focused in our stronghold markets, which include several European countries, California in the US and Colombia in Latin America. We benefit from

a well-known brand, especially in the home market, and we are increasingly being recognised for our capacity to deliver a broad portfolio of healthcare services, spanning prevention, acute care and rehabilitation for both physical and mental issues.

With our strategy, Care for More ’27, we want to further strengthen Falck’s foundation to deliver significant healthcare impacts for individuals and society at large.

In the European region, reported revenue remained unchanged compared to last year despite a reduction in the portfolio of ambulance contracts. The Individual Care segment in Europe performed well – and as expected – reporting positive organic revenue growth rates, which almost compensated for the contract changes affecting Societal Care Europe. Overall, the organic revenue growth rate in Europe was negative at 1.0%.

For the Americas region, reported revenue was up, for an organic growth rate of 5.6% for 2024. This was due to more service and solution deliveries in both Societal Care and Individual Care.

During the year, most business units improved on operational efficiency, and continuing this trajectory remains high on the working agenda.

programme is considerable in terms of financial resources, and Falck invested DKK 213 million in digitalisation initiatives in 2024 against DKK 153 million the year before. Due to the nature of these investments, they are recognised as costs in the income statement, thereby impacting EBIT before special items.

Alongside our digitalisation investments, we have made investments into the introduction of new healthcare at home solutions with Mobile Care in the US and AcuCare in Denmark. Healthcare at home solutions will enable better prevention and more treatment at home, leading to much stronger healthcare impacts at lower cost.

The feedback from patients receiving home treatment has been extremely positive with reports of improved health, a sense of security and greater flexibility.

All the strategic initiatives outlined are focused on key priorities: organic growth, scaling of services and solutions, operational efficiency, digitalisation, innovation and sustainability. We are satisfied with our progress in delivering on these priorities.

Financial performance as expected

In 2024, Falck reported group revenue of DKK 12,134 million (DKK 11,913 million) and EBIT before special items of DKK 533 million (DKK 439 million). We achieved organic revenue growth of 1.0%. The EBIT margin before special items was 4.4% (3.7%). Free cash flow after tax amounted to an inflow of DKK 231 million (DKK 311 million). The financial results were consistent with the 2024 outlook.

In line with last year, the Board of Directors proposes not to distribute any ordinary dividend at the upcoming Annual General Meeting to support ongoing investments into Falck and to achieve a lower leverage ratio.

Looking ahead to 2025, we project organic growth of around 4% and an EBIT margin before special items in the range of 4-5%.

Driving digitalisation and innovation

Since 2023, we have invested significantly in digitalisation and innovation of sustainable healthcare solutions.

Digitalisation is a key driver in our pursuit of improving operational efficiency and cybersecurity. That is why the investment

We have built these healthcare solutions on our experience from Colombia. This is an example of how we successfully scale solutions and best practices across markets. These solutions are still in development, and we are seeking to further mature the market in 2025.

Progress on sustainability

This year, we have taken yet another significant step forward on sustainability by conducting a preliminary Double Materiality Assessment (DMA). This will support our readiness towards CSRD compliance for 2025 reporting, but equally important, it has consolidated our sustainability strategy.

The DMA has confirmed that we are already working on and investing in many of the ESG matters that are most relevant to Falck, our stakeholders and surroundings. Therefore, we are also proud to report progress on many material areas.

Total CO2 emissions (scope 1) have decreased by 7.8% since the baseline year 2022, driven by the loss of CO2-intensive ambulance contracts in Europe and increased electrification of our fleet. Relative CO2 emissions (measured as tonnes of CO2/revenue) have decreased to 3.69 from 3.88 last year.

It was a milestone for us that the Science Based Targets initiative (SBTi) approved our new nearterm (10-year) science-based CO2 reduction targets at the close of 2024, and we now have scope 1, 2 and 3 targets aligned with the Paris Agreement.

On gender diversity, our target of ensuring at least 40% representation of the underrepresented gender at Senior Management level by 2025 was achieved in 2024. This management level comprises managers reporting to a member of the Executive Management and with responsibility for at least one employee.

Although we improved our overall safety performance compared with last year, we are not satisfied with the level of injuries. Safety performance will remain a key focus area in 2025.

Our culture and skilled employees are Falck’s greatest assets. We are encouraged by the

improvement in our employee engagement score, which increased to 76 in 2024 from 74 last year.

Falck awarded large ambulance contract Before the close of 2024, we received the news that Falck was awarded a major ambulance contract in Catalonia, Spain. As a result, we will increase our current presence in Catalonia by approximately 50%, employ around 2,200 employees compared to about 1,400 today and double the revenue volume.

The new agreement is expected to commence within one year. After the award, there is a standstill period to address any potential legal objections.

Ending a solid year, we extend our gratitude to all Falck employees for their dedication and hard work, as well as to our partners, customers, investors and stakeholders for their trust and support. Together, we are advancing sustainable healthcare to support more people globally in living healthy lives.

Events 2024

Q1

•Falck forms two new business units, Direct Care and Global Assistance, and subsequently appoints two new members of the Executive Management.

Q2

•Falck enters an agreement to acquire Asistencia Médica S.A.S and Servicio de Asistencia Médica Inmediata S.A.S in Colombia, two of the leading home healthcare companies in three of the main cities in the northern part of the country (Bucaramanga, Cucuta and Santa Marta).

Niels Smedegaard Chair of the Board of Directors

Q3

•Falck introduces Mobile Care in the US and enrols the first group of patients.

•Falck wins an ambulance tender in the Region of Southern Denmark (Region Syddanmark).

•In Colombia, a major agreement on doctor-on-call services with the healthcare supplier Sura is terminated.

Q4

•Falck divests its fire services and prevention operations in Brazil (Falck Fire & Safety in Brazil).

•The first phase of the AcuCare pilot is concluded with promising results.

•Falck launches its second Mental Health Barometer in Denmark to accompany the WHO’s World Mental Health Day.

•Falck receives approval from the Science Based Targets initiative (SBTi) of its near-term (10-year) science-based CO2 reduction targets.

•Falck is awarded a large ambulance contract in Catalonia, Spain.

Outlook 2025

The outlook for 2025 is shaped by the many strategic initiatives and performance targets under Falck’s Care for More '27 strategy. While some regions face challenges, others benefit from more stable performance due to recent years’ operational improvements. Falck will continue to invest in digitalisation of its services, processes, and the customer experience, etc. but the investment level will be lower than in 2024. The focus remains on leveraging these strategic initiatives and maintaining solid underlying performance momentum across Falck’s business units to drive growth and profitability.

Revenue

For 2025, organic revenue growth is expected of around 4%. This reflects the current momentum across various business units and continued efforts on value management, including pricing and product portfolio management.

EBIT (before special items)

The EBIT margin before special items is expected to range between 4% and 5%.

In 2025, Falck expects organic revenue growth of around 4% and an EBIT margin before special items of 4-5%.

Our business model

Our purpose and who we are

How we serve customers

”Advance sustainable healthcare to meet people’s changing needs”

+25,000 highly skilled professionals present in 25 countries

Acting as partner and supplement to the established healthcare offerings

Our capabilities

Deep understanding of healthcare, safety and customer needs

High-quality commercial services delivered through long-term contracts and subscriptions

Excellent operational planning, training, mobilisation and utilisation

Preventive care

We help individuals and organisations stay healthy by working with them to prevent physical and mental health problems and lifestyle-related conditions

Acute care

We deliver fast and effective care when a healthcare problem arises – ensuring people get the right diagnosis and treatment at the right time, either at home, digitally or in a healthcare facility

Rehabilitative care

We help people physically and mentally recover after a healthcare problem –keeping them safe as we bring them back to good health, so they can thrive in their everyday lives again

The value we create

Ease critical moments

During a crisis, the right interventions at the right time are critical to achieve the best outcome. Easing critical moments means alleviating physical and emotional impact of critical healthcare moments.

Enable equal access

Today, many people receive insufficient care due to financial, cultural and logistical barriers. Enabling equal access means delivering inclusive care to diverse populations and helping them navigate their care.

Ownership

Majority foundation ownership with long-term commitment to healthcare

Build resilient communities

Families, organisations and health systems need the tools to prevent, withstand and recover from healthcare challenges. Building resilient communities means ensuring adaptable and sustainable healthcare for individuals and society.

Geographical strongholds

Falck has established three geographical strongholds, leveraging its global expertise to address local healthcare challenges. Each stronghold offers unique potential based on its economic profile, healthcare demands and openness to innovation, positioning Falck as a key player in shaping the future of healthcare services.1

Market attractions

• Developing economies with ~650m population3. Growing middle classes seeking better healthcare services in a market with scarce healthcare resources

• Colombia is the third largest economy in South America, and lack of a publicly funded healthcare system facilitates innovation

US / California

Market attractions

• California is a ’G7-sized economy’ with the biggest global per capita spend on healthcare2

• Big opportunity to bring down spending and strains on healthcare systems with a high willingness to pay and openness to innovation

Falck’s position

• A leading Californian 911 position

• Emerging position within mobile health market and similar adjacent services

LATAM / Colombia Europe / Scandinavia

Falck’s position

• A leading provider with strongholds in Colombia, offering subscription-based pre-hospital and posthospital services

• Globally leading digital healthcare services

Market attractions

• Mature market with generally publicly funded healthcare systems –challenged financially and capacity wise with high demand for new solutions

• Large, growing and affluent B2B/B2C markets

• European stronghold countries include: Denmark, Norway, Sweden, Poland, Germany and Spain

Falck’s position

• Falck’s original home market

• A fully integrated panScandinavian healthcare provider

• Partner and supplement to public healthcare systems

• Expanding positions within emergency medical services into the emerging market for mobile healthcare services

Strategy update

The corporate strategy – Care for More ’27 – is the foundation on which Falck will evolve into a leading, global healthcare company, helping even more people live healthy lives. The strategy aims to grow Falck’s profitability and create an even stronger company.

At Falck, it is our ambition to advance sustainable healthcare to help more people around the world live healthy lives. Our commitment to individual and societal healthcare impact is stated in the purpose and sets the direction for the corporate strategy and sustainability ambitions.

Growing healthcare needs

The need for individual and societal healthcare services will increase consistently due to societal megatrends such as ageing populations, more multimorbid individuals and scientific breakthroughs which will foster new treatment opportunities and create additional demand.

These megatrends will add additional pressure on already stretched healthcare systems. Hence, we expect the commercial market for healthcare services in our stronghold markets to grow by an annual rate of 4-6% in real terms towards 2027. This is beyond projected GDP growth in most countries.

In this business environment and with these megatrends, it is our objective to significantly improve the financial as well as the commercial strength of Falck as a healthcare company. This aligns with our societal ambition of delivering stronger health impact with reduced climate impact and supplementing and supporting healthcare systems under increasing pressure.

In all markets, we observe rising expectations for fast help in moments of distress and lifethreatening situations. There is an increasing demand from individuals, corporations and governments for easier access to convenient and quality healthcare. This includes prevention, treatment and rehabilitation for both physical and mental health issues. On those core needs, Falck has a portfolio of relevant, well-established services and solutions.

Falck delivers individual and societal care

Individual care

Customers •Private consumers (B2C), corporations (B2B) and insurance companies (B2I)

Contracts

•Pay-on-use

•Subscriptions

•Framework contracts

Services

•Healthcare treatment and guidance

•Healthcare at home

•Patient transport

•Roadside and civil assistance

•Travel and security assistance

•Safety equipment and guidance

•Fire services and prevention

Societal care

•Governmental institutions and authorities (B2G)

•Long-term contracts

•Ambulance

•Fire services and prevention

•Patient transport

Falck provides an array of healthcare services to multiple customer segments in 25 countries through various types of contract agreements.

In broad terms, individual care is categorised as being those healthcare services which are made commercially available to private consumers, corporations and insurance companies. Examples include access to support from healthcare professionals such as physiotherapists and psychologists as well as patient transport and travel and security assistance.

Within the societal care category, Falck provides especially governmental institutions and public authorities with partnerships to deliver services such as ambulance emergency operations, being a provider of national pre-hospital systems. Falck also provides the capacity to manage infrastructure and crisis mobilisation.

Focus on organic growth

Falck’s corporate strategy is primarily organic, building on organisational capabilities and culture, whilst supported by carefully selected acquisitions.

We focus on delivering organic revenue growth by offering additional services to existing customers and expanding the customer base, while also scaling established core services across markets and customer segments to reach more people.

Equally important are our efforts to ensure ongoing improvements of operational efficiency to enhance profitability.

We invest significantly in innovating new services, leveraging learnings and experiences across the geographical strongholds. These efforts are supported by an ambitious digital agenda, integrating digital solutions, platforms and business models to ensure strong user experiences, enhancing service delivery, optimising operations and driving margin improvements. An additional investment of more than DKK 900 million is being allocated towards this goal between 2023 and 2027.

Further, we are committed to fully integrating sustainability into our business model and

delivering on the Environmental, Social and Governance (ESG) targets and commitments, with a special emphasis on creating positive social impacts in the communities we are serving and being a part of.

With these efforts combined, we aim to strengthen Falck’s distinctive business model, which is directed towards creating value to society by easing critical moments, enabling equal access to healthcare and building resilient communities.

Evolving healthcare at home

Across our strongholds, we see a compelling market opportunity for Falck within healthcare at home solutions. In this area, we are able to take advantage of the operational experiences from Colombia and Poland.

While also leaning on our market strength within ambulance services, we have thoroughly tested new and promising ways of delivering healthcare at home solutions with Mobile Care in the US and AcuCare in Denmark during 2024.

The purpose of these services is to reduce acute incidents, ambulance emergencies and hospitalisations through new ways of organising healthcare systems. The healthcare at home solutions can be delivered with different approaches and capabilities. One model is to facilitate treatment at home rather than being hospitalised. Another model enables ongoing monitoring of the patient at home with the use of technology, thereby providing the ability to intervene before a situation becomes acute.

The models can be combined and structured in different variations. Regardless, the common feature of healthcare at home solutions is that they contribute to removing pressure from the hospitals, improving patient journeys and reducing healthcare costs substantially.

Additionally, they help mitigate climate impact and broaden the span of healthcare professionals that can contribute to resolving the resource challenge.

Expanding in stronghold markets

As a market leader in both individual and societal care with a presence in three geographical strongholds, we aim to leverage the extensive network, strong brand and operational excellence to deliver critical services with unmatched efficiency and reliability.

Europe

In Scandinavia, we stand as a fully integrated individual care provider. Our aim is to gain a presence in all relevant customer segments through scaling of services and to expand into other relevant European markets. Based on the current strength within ambulance services, we seek to become a provider of complete national pre-hospital systems in Europe.

In 2024, we launched private healthcare subscriptions in Sweden, distributed through workplaces to private households. This service has been available in Denmark for several years.

In the Danish market, we streamlined the subscription-based healthcare packages.

Moreover, we launched an extended healthcare coverage for corporations with access to additional services such as private hospitals, psychiatrists and dietitians.

The Americas

We have strengthened our ambulance services in California, US, through a turnaround and harvesting of operational efficiencies over the past years. This has created the foundation for expanding the presence within pre-hospital services to other states beyond California.

Furthermore, the time is now ready to aspire for a presence within individual care in California, US. This has motivated the start-up of a prototype of Mobile Care, a solution that provides healthcare at home.

In Latin America, the focus is to build on our strong presence in Colombia within individual care, scaling the doctor-on-call services, mostly subscription-based, to broader audiences in Colombia, Uruguay and Panama. On that foundation, we will seek to expand the services to more cities and neighbouring markets in the years to come. As part of these efforts, we pursued the acquisition of Asistencia Médica S.A.S and Servicio de Asistencia Médica Inmediata S.A.S to expand the geographic coverage in the northern part of Colombia.

Progressing as planned

In 2024, we advanced as planned on important Care for More ’27 priorities and solidified our position as a healthcare company.

From a financial standpoint, all of Falck's businesses recorded organic revenue growth, apart from Societal Care in Europe. The EBIT margin before special items (EBIT margin b.s.i.) in the business segments, Europe and the Americas, increased year on year.

During 2024, we made progress on key digitalisation initiatives such as platform consolidation, robotic process automation, customer self-services and generative AI as well as the development of stronger financial management systems together with enhanced cybersecurity measures. These impacts will materialise as operational efficiencies and improved customer solutions from 2025 onwards.

As already mentioned, we also successfully tested new healthcare at home solutions in the US and Denmark.

Falck’s long-term ambition

We foresee an expanding market due to ageing populations and a growing portfolio of noncyclical contracts. This should ultimately pave the way for growing approximately 1.5 times faster than the market and for an improved EBIT margin b.s.i.

We aim to become a preferred partner and supplement to public healthcare systems by providing complementary solutions. This will enable public healthcare systems to focus better on the most difficult healthcare issues.

With more than 100 years of experience and operations in multiple markets, we can bring innovations and global learnings to the healthcare sector and both activate and establish new partnerships to alleviate the pressure on healthcare systems.

A key to unlocking this ambition is our ability to mobilise skilled healthcare professionals trained to manage critical situations and deliver efficient and reliable healthcare services with an increased use of digital technology.

In conclusion, we progressed well on Care for More ’27 during 2024 by strengthening the delivery of individual and societal care solutions, thereby helping even more people live healthy lives.

Falck introduces healthcare at home in the US

Falck’s Mobile Care solution in the US has already had a significant impact for patients like 65-year-old Jennifer Smith, who experienced heart palpitations.

When Jennifer experienced heart palpitation, she was reluctant to leave her home to go to an urgent care clinic or the emergency department because she was taking care of her grandchild. She had recently seen Falck’s new Mobile Care solution at a local healthcare fair and decided to call.

Within two hours, the Mobile Care specialist arrived at her home. In 45 minutes, the Mobile Care specialist checked vitals, prepared the online doctor consultation and discussed the treatment plan. Afterwards, Jennifer told Falck that the visit had given her peace of mind.

Medical consultation at home

Falck introduced Mobile Care in a defined area in Orange County, California, in 2024 as part of an initiative to complement its emergency ambulance operations. The set-up combines online doctors and a Mobile Care specialist going to a patient’s home to perform medical consultations.

With Mobile Care, patients can call Falck 24/7 to set up an appointment. The dispatch books the appointment and sends the information to a care coordinator, who will call the patient prior to the home visit to prepare everything.

An in-home consultation may include measuring blood pressure, pulse, oxygen saturation, temperature and other physical parameters. Once the Mobile Care specialist has gathered all the information, an online connection is set up with a doctor. The patient and the Mobile Care specialist participate in the call together, and the Mobile Care specialist subsequently ensures that the patient understands the proposed treatment plan.

Strong benefits

The key rationale behind Falck’s Mobile Care is to reduce visits to the emergency department by moving more prevention and treatment to patients' homes. This approach reduces healthcare costs, improves patient experiences and enhances healthcare outcomes.

Mobile Care allows a wide range of situations currently treated in a hospital emergency department to be treated at home at a lower cost. For instance, the cost savings from sending a Mobile Care specialist to a patient’s home rather than dispatching an ambulance for situations such as a fall, infection or dehydration are around 40-50%.

The feedback collected from patients receiving treatment at home has been overwhelmingly positive. Patients broadly reported better health, a feeling of security and more flexibility. Based on these results, Falck is encouraged to further develop healthcare at home services in the US and elsewhere.

“Certainly, we stand ready to provide an ambulance quickly whenever critically needed. But we are seeking to avoid unnecessary emergency transportation when better solutions exist. This is why we are looking into developing Falck Mobile Care even further in the coming years for patients like Jennifer Smith”

Yann Hedoux, SVP, Falck USA.

Financial results for the Group

Revenue increased, driven by solid growth in the Americas. Earnings increased significantly as a result of improved efficiency combined with better pricing across Falck’s services.

Revenue increased by DKK 221 million to DKK 12,134 million (DKK 11,913 million), corresponding to reported growth of 1.9%. This was mainly driven by organic growth of 1.0%, driven by the Americas, and by a combination of subscription growth, higher pay-on-use activity and price increases. M&A activities, mainly due to the acquisition of MedConnect A/S in Q4 2023, contributed 0.5 percentage points to reported growth, while foreign exchange effects contributed 0.4 percentage points.

Cost of services (OPEX) decreased by DKK 35 million to DKK 9,218 million (DKK 9,253 million) despite the increase in revenue. This was driven by reduced contract volume in Societal Care Europe from contracts with a higher OPEX ratio than the business segments that contributed to the revenue growth. This resulted in positive mix effects. Together with operational efficiency improvements and price increases, this had a significant positive impact on the OPEX ratio, which was reduced by 1.7 percentage points to 76.0%.

Sales and administrative expenses (SG&A) increased by DKK 174 million to DKK 2,404 million (DKK 2,230 million). Almost half of the increase was due to salary inflation, while DKK 60 million

of the increase was attributable to investments in digitalisation. Year to date, these investments amounted to DKK 213 million (DKK 153 million), of which DKK 129 million related to digital foundation work and DKK 84 million to businessoriented digital capabilities. Finally, the increase was also driven by costs for continued sales push in LATAM and by costs related to the launch of healthcare at home services in both Europe and the Americas. Overall, the SG&A ratio increased to 19.8% (18.7%).

EBIT before special items (b.s.i.) increased by DKK 94 million to DKK 533 million (DKK 439 million). Operational efficiencies and price increases more than compensated for salary inflation and for the increased investments in digitalisation, launch of new services and strengthened commercial efforts. Consequently, the EBIT margin b.s.i. increased by 0.7 percentage points to 4.4% (3.7%).

Operating profit (EBIT) increased by 59 million to DKK 445 million (DKK 386 million) despite an increase in costs under special items, including, in particular, transaction costs related to acquisitions and divestments. The EBIT margin increased to 3.7% (3.2%).

Profit for the year was DKK 116 million (DKK 334 million). Net financial expenses were slightly higher than last year and income taxes increased by DKK 268 million. Last year, income taxes were positively impacted by reassessment of deferred tax assets

in the US. Given the continued need for investments and wish to maintain a certain level of financial flexibility, the Board of Directors proposes to suspend the ordinary dividend based on the 2024 result.

Free cash flow after tax was an inflow of DKK 231 million (inflow of DKK 311 million), corresponding to a cash conversion rate of 43.2%. Cash conversion was negatively impacted mainly by the ongoing replacement of ambulances in the US and the consequent increase in capital expenditures. Also, increase in trade receivables resulting from increased revenue recognition in the US had a negative impact on the cash conversion rate.

Equity increased to DKK 4,104 million from DKK 4,045 million at 31 December 2023. The profit for the year was partly offset by the negative effect from currency translation of equity in subsidiaries.

Net interest-bearing debt of DKK 3,454 million was slightly reduced compared to last year (DKK 3,517 million at 31 December 2023) despite the increase in capital expenditures related to ambulance replacements in the US.

Net operating assets were on par with last year at DKK 7,557 million ( DKK 7,562 million at 31 December 2023) as a reduction in leased assets compensated for the above-mentioned ambulance replacements in the US.

Europe

In Europe, Falck’s activities comprise a range of services within both individual and societal care, targeting private, corporate and public-sector customers.

Falck’s activities in the Individual Care segment comprise a wide range of services that all target individual non-emergency needs, whether relating to mental or physical health, patient transport or travel and security assistance. These services are mainly provided in Scandinavia, while travel and security assistance services are also provided in markets outside Scandinavia.

In the Societal Care segment, Falck provides emergency response ambulance and fire services as well as patient transport services (mainly inter-facility) to public-sector customers.

Finally, Falck’s Industrial Fire services business (IFS) provides both preventive and emergency response fire services for medium-sized to large corporate customers across several markets, mainly in Western Europe.

In both Societal Care and IFS, Falck’s services are typically provided through long-term contracts with pre-defined annual revenue or through payon-use models. In Individual Care, both long-term contracts, pay-on-use and subscription revenue models are used.

Share of group revenue

Societal Care Individual Care

69%

• Ambulance

• Fire services and prevention

• Patient transport

Services

• Healthcare at home

• Healthcare treatment and guidance

• Patient transport

• Roadside and civil assistance

• Safety equipment and guidance

• Travel and security assistance

Employees (FTEs)

3,170

Markets

Denmark, Norway, Sweden. Travel and security assistance are supported out of Denmark, Norway, Sweden, Finland, the US, India, Turkey, Spain and Thailand

Employees (FTEs)

6,020

Markets

Denmark, Sweden, Germany, Poland, and Spain

Industrial Fire services (IFS)

Services

• Fire services and prevention

Employees (FTEs)

2,304

Markets

Belgium, France, Germany, Italy, the Netherlands, Norway, Denmark, Sweden, Poland, Portugal, Romania, Slovakia, Spain, Australia and the UK

Performance in Europe

Revenue was unchanged compared to last year due to contract changes in the European ambulance operations. Still, earnings improved significantly as a result of efficiency improvements across the healthcare and safetyrelated activities in Individual Care.

Revenue growth was flat despite a negative impact from contract changes in Falck’s European ambulance operations. Revenue amounted to DKK 8,315 million (DKK 8,350 million). The contract changes were compensated for by strong organic growth in Direct Care. The largest growth contribution came from stronger demand for Falck’s pay-on-use-based services within both healthcare and travel and security assistance for corporate customers. Another contribution came from higher subscription revenue from healthcare services within Individual Care. Overall, higher activity and subscription revenue combined with price increases in Individual Care Europe almost fully compensated for the contract changes in Societal Care Europe, resulting in negative organic growth of 1.0%. The acquisition of MedConnect in October 2023 provided a positive impact on growth of 0.5 percentage points, while foreign exchange effects had a positive impact of 0.1 percentage point. Hence, reported growth amounted to -0.4%.

Earnings increased by DKK 72 million or 15.8% compared to last year as EBIT b.s.i. amounted to DKK 526 million. The significant improvement in earnings despite the flat revenue development was mainly due to improved operational efficiency in the part of Individual Care that services corporate customers. This was the largest contribution to the reduction in the OPEX ratio of 1.3 percentage points. In addition, the sale of assets (mainly vehicles) in connection with contract exits in Sweden provided a positive contribution to earnings. In combination, these contributions more than outweighed the increased SG&A in travel and security services to meet growing demand and continued growth plans in this area. Overall, the EBIT margin b.s.i. improved by 0.9 percentage points to 6.3% (5.4%).

The Americas

Falck's activities in the Americas mainly comprise pay-on-use ambulance operations and subscription-based healthcare services.

The Societal Care segment comprises Falck’s ambulance services operations in the US targeting public-sector customers mainly on the West Coast of the USA. Healthcare at home services similar to those in LATAM are currently being developed and piloted. At this early stage, revenue is still immaterial compared to that of the ambulance services.

The Individual Care segment mainly comprises "doctors-on-demand" services for individual subscribers and insurance holders. The majority of revenue and earnings is generated in Colombia, but Falck also has activities in Uruguay, Panama, El Salvador and Ecuador.

In Societal Care, Falck’s services are typically provided through long-term contracts with predefined annual revenue or through pay-on-use models. In Individual Care, long-term contracts, pay-on-use, and subscription revenue models are used.

Ecuador, El Salvador, Panama and Uruguay

2,942

The Americas

Performance in the Americas

Strong revenue and earnings growth driven by improved profitability in US activities.

Revenue growth was 7.2%, driven by significant organic growth mainly in Individual but to some extent also in Societal Care. In Societal Care US, growth was positively impacted by both higher pay-on-use activity and, in particular, efforts to improve revenue collection, which led to more revenue being recognised per ambulance trip. In addition, in Q4, a partial reversal of a fully written-down receivable from a large payer in the US had a positive impact on revenue and on organic growth. The write-down was recorded in 2023. In Individual Care LATAM, strong organic growth of 12.3% was driven by a solid uptake of subscribers throughout the year. In both segments, annual indexation of prices also contributed to growth. Revenue in the Americas amounted to DKK 3,818 million (DKK 3,563 million), corresponding to a reported growth rate of 7.2%, of which organic growth accounted for 5.6 percentage points, M&A for 0.7 percentage points and foreign exchange effects for 0.9 percentage points.

Earnings increased by 33% as EBIT before special items amounted to DKK 569 million (DKK 439 million). The increase was mainly driven by higher revenue and improved operational efficiency in Societal Care US. For Individual Care LATAM, the increase in earnings was more modest as

operational costs and higher SG&A costs put pressure on the margin. Both factors were linked to recent political changes in the Colombian healthcare system, which led to increased uncertainty in the market, resulting in a notable increase in the use of Falck's subscription-based services. SG&A increased due to strengthened sales efforts to mitigate the loss of a significant insurance customer who decided to insource operations in response to the political changes. Despite these factors, the EBIT margin before special items for the Americas increased by 2.6 percentage points to 14.9%.

Q4 financial results

Significantly improved earnings despite flat revenue growth.

Revenue decreased to DKK 3,114 million (DKK 3,139 million). In Europe, organic revenue growth was flat. Subscription growth and higher pay-onuse activity in Scandinavia within healthcare treatment and assistance services in Individual Care compensated for ambulance contract changes in Societal Care Europe. In the Americas, organic growth in Individual Care LATAM was strong, whereas organic growth in Societal Care US was slightly negative. In Q4 2023, revenue in the US was positively affected by a timing effect from previous quarters due to adjustment on recognised revenue from insured customers. In Q4 2024, there was no significant timing effect of the same nature. However, Q4 2024 was positively impacted by the partial reversal of a fully written-down receivable from a large payer. The underlying activity and contract portfolio was at the same level as in 2023. M&A activities contributed positively by 0.4 percentage points to revenue growth, while foreign exchange effects contributed negatively by 0.1 percentage point. As a result, reported growth was -0.8%.

Cost of services (OPEX) decreased by DKK 64 million to DKK 2,339 million (DKK 2,403 million). As for the full-year, this was driven by the reduced contract volume in Societal Care Europe where the exited contracts had a higher OPEX ratio than the business segments that contributed the revenue growth. In combination

with improved operational efficiency in especially the Scandinavian-based healthcare and roadside and civil assistance activities within the Individual Care segment, this contributed to a reduced OPEX ratio of 75.1% (76.5%).

Sales and administrative expenses (SG&A) decreased by DKK 57 million to DKK 569 million. Despite general salary inflation, strengthened sales efforts in LATAM and increased investments in digitalisation, expenses were reduced mainly as a result of reduced sales and administration expenses in the US. Falck’s investments in digitalisation have increased to DKK 59 million in Q4 (DKK 47 million), of which DKK 28 million related to digital foundation work and DKK 31 million to business-oriented digital capabilities.

EBIT before special items increased by DKK 86 million to DKK 199 million as a result of reduced OPEX as described above and the fact that Q4 2023 was impacted by trade receivable writedowns in the US that were partly reversed in Q4 2024. As a result, the EBIT margin before special items increased by 2.8 percentage points to 6.4%.

Free cash flow after tax was an outflow of DKK 24 million (outflow of DKK 302 million), corresponding to a cash conversion rate of -12%. In addition to increased trade receivables due to timing effects, the cash conversion rate was negatively affected by increased capital expenditures related to the replacement of

ambulances in the US which will continue into 2025.

Key figures Q4

Acquisitions/divestments (%) 0.4%

Foreign exchange rates (%) (0.1%)

Reported growth (%) (0.8%)

Free cash flow after tax

flow from operating activities after tax

Reversal of interests etc. paid/ received 59 44

Purchase of property, plant, equipment and intangible assets (154) (63) Sale of property, plant and equipment

”Falck acts as a strong partner to us, because they can create and provide combined healthcare and labour market solutions – delivered from their wide range of professionals and available services.”

Kirsten Paysen Johansson Area manager for employment activation services at Tønder Municipality.

Enhancing health and employment in Tønder Municipality

In a partnership with Falck, the Danish municipality of Tønder works dedicated to secure healthcare support for its around 3,000 employees as well as a healthy local labour market.

Tønder Municipality, located in the southern part of Denmark, is home to approximately 37,000 citizens. In recent years, local businesses have faced challenges in filling vacant positions due to a tight labour market. This is also affecting the municipality as one of the area’s largest employers.

To address this, Tønder Municipality has partnered with Falck to safeguard and improve healthcare for its 3,000 employees while also supporting the local labour market by bringing vulnerable citizens into the workforce. It is the municipality’s overall ambition to ensure that as many citizens as possible participate and stay in the labour market - and the provision of healthcare is essential to achieving this. The partnership has been evolving for over ten years.

Close partnership

Tønder Municipality focuses on employee health as a responsible employer and with the aim of reducing especially sick leaves. The municipality’s employees have direct access to Falck’s healthcare services, which are further supplemented by targeted initiatives.

For example, Falck recently held a series of mental first aid courses for employees who interact with vulnerable citizens and face the risk of encountering challenging, stressful situations, including potential physical or mental offences.

This was a preventative healthcare measure to build resilience and reduce the likelihood of sick leaves following such incidents.

The partnership also encompasses a comprehensive labour market programme, aiming to support unemployed citizens with severe mental or physical issues in returning to or entering the workforce. Examples include a programme designed to train young people with mental health issues to cope well enough to start a job or enroll in an education. In fact, there is a portfolio of programmes in place tailored to various groups, all of them requiring the support of different healthcare professionals along with special advisors with insights into connecting with relevant workplaces.

“Falck acts as a strong partner to us, because they can create and provide combined healthcare and labour market solutions –delivered from their wide range of professionals and available services. As a focused healthcare company, they can handle any task, large or small, mental or physical, which is incredibly valuable to us,” says Kirsten Paysen Johansson, area manager for employment activation services at Tønder Municipality.

Building results

The municipality has already made significant progress. The rate of sick leave among the employees remains low. The unemployment rate stands at its lowest since 2007 and more citizens with complex issues work regular hours.

Corporate governance

Falck is aligned with the Recommendations on Corporate Governance issued by the Danish Committee on Corporate Governance and is preparing for alignment with the Corporate Sustainability Reporting Directive (CSRD) in 2025 reporting.

At Falck, it remains a top priority to conduct business in accordance with strong corporate governance principles. Hence, the Board of Directors regularly reviews the Group’s corporate governance framework and policies in relation to activities, business environment and the Danish Recommendations on Corporate Governance (in the following referred to as the “Recommendations”).

Falck’s corporate governance compliance is reported annually in accordance with the “comply or explain” principle set out in the Recommendations. The Comply or explain analysis is available at the corporate website www.falck.com/about-us/corporategovernance.

The 2024 comply or explain analysis states that Falck adheres to all the Recommendations. This represents an improvement from last year. Since last year, Lene Skole has been replaced by Ingrid Bojner in the Audit Committee. Ingrid Bojner is considered independent. Furthermore, Peter Schütze is no longer considered a dependant

member as he resigned from the Board of the Lundbeck Foundation in March 2024.

Governance structure, board composition and responsibilities

Partially fulfils ESRS 2 GOV-1 The role of the administrative, management and supervisory board*

Falck operates a two-tier management system comprising the Board of Directors and the Executive Committee. This practice follows Danish legislation. There are no overlapping memberships between the two bodies. Moreover, retiring members of the Executive Committee are not permitted to join the Board of Directors immediately following their tenure.

The shareholders have the ultimate decisionmaking power at Falck and may pass resolutions at the Annual General Meeting and Extraordinary General Meetings. At the Annual General Meeting, members are elected to the Board of Directors, and an independent auditor is appointed. The Board of Directors guides and supervises Falck’s activities, development, management and organisation.

The Board of Directors acts in compliance with applicable legislation and convenes at least seven times a year or as required by special circumstances. The Board of Directors has nine members. Six members are elected by the shareholders, while three are elected by the employees of Danish group companies. Four out of six shareholder-elected members are considered independent.

The Board of Directors has established the Audit Committee and the Remuneration and Nomination Committee. These two committees are responsible for preparing decisions and recommendations for consideration and approval by the Board of Directors. The Executive Committee is responsible for the day-to-day management. The Executive Management team undertakes leadership of the day-to-day operations of the business areas and global functions.

Shareholders

Board of Directors Audit Committee

Shareholder-elected board members serve for one-year terms and employee-elected members for four-year terms. The most recent election of employee representatives for the Board of Directors was held in March 2021 for the 2021-2025 term. The current employee representatives are Vagn Flink Møller Pedersen, Stefan Fyhn Gregersen and Christian Jesper Engvad Madsen. The next employee election is scheduled for 2025.

The Lundbeck Foundation is represented on the Board of Directors by Lene Skole (Deputy Chair), while KIRKBI is represented by Thomas Lau Schleicher. The other four shareholder-elected members are considered independent. None of the employee-elected members are deemed independent as defined by the Recommendations.

The Executive Committee and Executive Management team

Partially fulfils ESRS 2 GOV-1 The role of the administrative, management and supervisory board

The Executive Committee is responsible for the day-to-day management and operation of Falck, which is conducted in accordance with the guidelines and recommendations set out by the Board of Directors and with the focus on developing and implementing strategies and significant initiatives.

The Executive Committee is responsible for ensuring that the Board of Directors is informed of all material matters and that proposals and recommendations concerning the Group’s overall strategy and objectives are submitted to the Board of Directors. The Executive Committee consists of the Group CEO and the Group CFO.

The Executive Committee has established an Executive Management team to undertake leadership of the day-to-day management. In addition to the Executive Committee members, the Executive Management team consists of the SVP, Employee and Labour Market services; the SVP, Direct Care; the SVP, Global Assistance; the SVP, Falck Eastern Europe; the SVP, Chief of Staff; the SVP, Falck Western Europe and Commercial; the SVP, Falck USA; the SVP, Falck LATAM and the VP CIO.

Evaluation of the Board of Directors

The Board of Directors has conducted an annual evaluation of the effectiveness of the Board of Directors, the processes supporting its work, individual board members’ contributions, the Chair’s performance and the Board of Directors’ interaction with the Executive Committee.

The assessment was carried out by an external company as a standardised procedure to assure anonymity, thereby following the Recommendations. The quantitative board evaluations are two-fold with a collective and an individual online self-assessment.

Every Board member and member of the Executive Committee has completed an online questionnaire.

As it has been general practise for several years, the board evaluation was presented to and discussed collectively on the Board of Directors, and the Chair provided each Board member with feedback. The 2024 board evaluation results reported a high score. The evaluation highlighted a continued high level of trust among Board

members in the performance and collaboration with the Executive Management. The Board believes it effectively ensures the necessary procedures for risk management and demonstrates significant insight into financial responsibilities. Furthermore, there was a strong overall assessment that the Board of Directors is highly committed to the sustainability strategy and target with a recommendation to continue and further develop this area. The evaluation indicates that the established board committees are functioning very well.

Lastly, the board evaluation revealed certain focus areas for the coming year. Based on the Board’s discussions of the 2024 evaluation, it has been decided to focus on the following key areas in 2025:

•Implementation of the Care for More ‘27 strategy

•Progress on sustainability and ESG

•Continued focus on digitalisation

Board competencies and diversity

Partially fulfils ESRS 2 GOV-2 - Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies

The members of the Board of Directors must jointly possess the breadth and depth of competencies required to inspire, drive and oversee the development of Falck. The Board of Directors believes that members should be chosen based on their overall competencies and recognises the importance and beneficial effect of diversity with respect to experience, cultural and educational backgrounds and gender. The Board of Directors continued to surpass the 40/60% gender distribution target through a 50/50% distribution.

All members of the Board of Directors hold equal rights and obligations. In 2022, the Board of Directors identified the following important competencies for the Board, which were maintained throughout 2024:

•C-level experience

•Strategic planning

•ESG

•Corporate governance

•Customer relation management

•M&A

•Industry-relevant experience

•Contract-based business models

•Subscription-based business models

•Core market insights

•Organisational development

•Digitalisation

•Technology innovation

•Risk management

Special competencies required from employeeelected members of the Board of Directors are:

•Company knowledge

•Balancing perspectives

•Employee engagement

•Internal communication

Board activities

Partially fulfils ESRS 2 GOV-2 - Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies

The Board of Directors held eight ordinary board meetings, one extraordinary board meeting along with a constitutional meeting and a strategy seminar in 2024. The most significant activities were related to:

•Implementation of Care for More ’27, including Digital Transformation

•Implementation of the Corporate Sustainability Reporting Directive (CSRD), including approval of Falck’s Double Materiality Assessment (DMA) and updated ESG governance

•Management of Group risks

•Implementation of the safety strategy developed in 2023

The regular activities of the Board of Directors included discussions and approvals of:

•Annual and interim reports, including sustainability reporting, remuneration reporting, forecast and targets

•Acquisitions, divestments, tenders and business updates

•Responses to engagement surveys, succession planning and approval of new competence profiles

•Policies for various subject areas

Furthermore, to support Falck’s strategic objectives and long-term value creation, the Board of Directors continuously evaluates Falck’s capital structure, including equity and debt levels, dividend policy, and capital allocation strategies.

Six out of nine members of the Board of Directors had an attendance rate of 100%. For a detailed overview of the attendance rate, please refer to the table Meeting attendance 2024 on page 31 of this report.

Internal controls

The Board of Directors and the Audit Committee have the overall responsibility for overseeing the internal control environment and the effectiveness of internal controls. The Executive Committee leads the implementation and monitoring of an

appropriate internal control environment. The internal control environment has been upheld by Internal Financial Controls, Quality Assurance and ISO Audit.

Remuneration

Partially fulfils GOV-3 - Integration of sustainability-related performance in incentive schemes

Remuneration of the Board of Directors and the Executive Committee is governed by Falck’s Remuneration Policy, complying with the Recommendations. As detailed in the annual Remuneration Report, Falck’s short-term incentive programme is a one-year cash-based initiative focusing on financial, commercial and ESG KPIs. Additionally, there is a three-year cash-based longterm incentive programme focusing on financial and commercial KPIs. The Remuneration Policy and Report are available at www.falck.com/aboutus/ corporategovernance/remuneration.

Data Ethics

Falck’s Data Ethics Policy is based on the basic principles of data ethics set out by the think tank

DataEthics. It covers the following areas:

•Purpose and usage: Human interests prevail over commercial interests. The data that we are legally required to store is held for the benefit of the individual.

•Individual data control: Individuals should have primary control over the use of their own data.

•Transparency: We strive to be transparent when we communicate purposes and interests of data usage to individuals via privacy notices and policies.

•Accountability and governance: Efforts are made to reduce the risks to individuals and to mitigate undesirable social and ethical implications.

A working group with representatives from global functions and business segments has been established as an advisory board to local and global

managements on data ethical matters. The global Data Ethics Policy, cf. section 99d, is available at www.falck.com/data-protection.

Board committees

The Board of Directors has established two committees to support its decision-making: An Audit Committee and a Remuneration and Nomination Committee.

The Audit Committee

In February 2024, the Board of Directors reappointed Peter Schütze as Chair of the Audit Committee. Further, Ingrid Bojner and Dorthe Mikkelsen were appointed members of the Audit Committee. The Audit Committee meets at least four times a year. Altogether, the Audit Committee held seven meetings during 2024 with a 100% attendance rate.

Most significant activities during 2024

• The recommendation to approve the Annual Report 2023 and the interim reports

• Discussion of future requirements in terms of control and assurance of sustainability reporting (e.g. CSRD) and discussion of methodology applied for the Double Materiality Assessment

• Committee recommendations related to audit and compliance, IT and cybersecurity

• Continued supervision of scoping and implementation progress of the finance system consolidation initiative, called Moneta

• The recommendation to approve the Nordic Investment Bank (NIB) debt diversification

• The recommendation to approve various policies.

You can read more about the Audit Committee and its terms of reference in the Charter on falck.com.

The Remuneration and Nomination Committee

In February 2024, Niels Smedegaard was reappointed as Chair of the Remuneration and Nomination Committee. Dorthe Mikkelsen and Lene Skole were reappointed as members. The Remuneration and Nomination Committee meets at least twice a year. The Committee held three meetings during 2024 with a 100% attendance rate.

Most significant activities during 2024

• Preparation of a succession plan and approval of new board competencies

• The recommendation to approve certain sections of the Annual Report 2023

• The recommendation to approve the Remuneration Policy and Report, including bonus to the Executive Committee and Executive Management based on Short-Term Incentives (STI) and Long-Term Incentives (LTI)

• The recommendation to approve various policies

• The recommendation to approve the Board of Directors’ focus areas for 2025

• Approval of the Board evaluation process for 2025.

You can read more about the Remuneration and Nomination Committee and its terms of reference in the Charter on falck.com.

Meeting attendance 2024

C-level experience

Strategic planning

ESG

Corporate governance

Customer relation management

M&A

Industry-relevant experience

Contract-based business models

Subscription-based business models

Core market insights

Organisational development

Digitalisation

Technology innovation

Risk management

Company knowledge

Balancing perspectives

Employee engagement

Internal communication

C-level experience from major international companies

Experience from strategic planning, development and implementation activities

Experience within environmental, social, and governance (ESG) implementation.

Experience with corporate governance recommendations and implementation.

Experience with customer relation management incl. sales, marketing and branding

M&A/divestment experience

Experience from the healthcare or emergency services industry

Knowledge and competencies around contract-based business

Knowledge and competencies around subscription-based business

Knowledge and competencies around Falck’s main markets, especially the US

Profound experience within organisational dev. incl. leadership and talent dev., change management and cultural transformations

Digital competencies to understand and support Falck’s digital efforts

Experience within implementation of innovative technologies

Risk management experience from a global company

Experience and broad knowledge of how the Falck Group conducts its business

Ability to balance Falck Group employee perspective and business perspective

Strong knowledge of what Falck Group employees are occupied with and pay attention to

Ability to advise on appropriate forms of communication between management and employees

The board members have evaluated their competencies within key areas on a scale 1-6, in which 4-6 indicates above average to outstanding. The table includes only competencies rated with a minimum of 4. The employee-elected board members have evaluated their competencies for the areas Company knowledge, Balancing perspectives, Employee engagement and Internal communication.

Mitigating risks to safeguard our business

Risk management is an integral part of good management practice, and at Falck we are committed to embedding a strong risk culture across the organisation and ensuring that effective risk management is integrated into all activities and business processes.

Falck has implemented a risk management framework outlining a consistent approach in the identification, assessment, treatment and monitoring of key risks.

The risk management process is focused on supporting Falck’s strategy and plays an instrumental role in the decision-making of the Executive Management.

The risk management framework enables Falck to protect and improve its value by addressing uncertainty in strategic planning. Overall, it aims to ensure a forward-looking risk management approach that provides a holistic view of all risks across the organisation.

Falck continuously focuses on strengthening its risk culture to support the execution of its strategy and achieve business objectives.

The established risk management process enables Falck to ensure that changes in both external and internal factors are adequately captured and reflected in the strategic and operational planning. The regular evaluation of the Group’s risk performance and the delivery on its objectives serve as an indicator of an efficient risk management process.

In 2024, Falck focused on strengthening risk awareness and integrating risk management. The overall risk picture and progress on mitigating actions to the top risks for 2024 were monitored by the Executive Management, the Audit Committee and the Board of Directors on a regular basis.

In 2025, Falck will continue to conduct risk training and workshops to further raise awareness and enable timely identification of both existing and emerging risks.

For 2025, Falck will continue to focus on the same top risks as identified in 2024 with the exception of the ESG/Sustainability risk. This risk of noncompliance with the CSRD has been downgraded due to structured planning of Falck’s reporting towards alignment in 2025.

Falck’s business risk management approach

Falck has established a holistic approach to enhancing its Enterprise Risk Management and Crisis Management Standards at Group level. This approach involves the ongoing assessment of external factors such as macroeconomic trends, healthcare trends and industry standards as well as internal factors identified in workshops and status updates on registered risks.

Top risks for 2025

Risk description: Compliance with relevant regulatory requirements is a condition for Falck to conduct its business. These regulatory requirements may be international, national or local laws and regulations, as well as standards or recommendations of regulators or supervisory authorities with jurisdiction in countries where Falck operates. Such requirements might relate (without limitation of others) to the healthcare sector and medical standards, to the interaction with consumers and handling of personal data, or to conducting business within the frame of business ethics or competition law. Failure to meet regulatory compliance obligations may result in a range of consequences such as prohibition from continuing operations, ban on bidding for public contracts, litigation from third parties, substantial fines and penalties and may have significant adverse impact on Falck’s reputation.

Staff shortages, influenced by external and macroeconomic trends, continue to pose a challenge. Attracting qualified candidates in the labour market is difficult, particularly in fields such as IT, analytics, customer intelligence and customer service. The most critical issue is the shortage of healthcare professionals, which directly impacts Falck’s operations. This situation leads to increased retention costs for the existing workforce and raises the risk of not meeting contractual obligations. Internal workforce shortages, resulting in understaffing and overtime, could negatively affect employee engagement, health, safety and wellbeing, potentially leading to increased sick leave. This risk may harm Falck’s reputation as an attractive employer and weaken its market position.

The risk of targeted or broader cyberattacks on Falck’s systems, networks, products and services, as well as on the confidentiality, availability and integrity of Falck’s data, remains significant. Such an attack could compromise Falck’s cyber defences, potentially disrupting global operations and hindering the delivery of products and services. Amid international conflicts and wars, the risk of severe statesponsored cyber-attacks has increased substantially, compounding the evergrowing threat of cybercrime.

The healthcare sector is characterised by rapid innovation, digital transformation and intense competition driven by the introduction of compelling new digital platforms. Automated processes, efficient IT platforms and essential digital skills are crucial for staying competitive with scalable business models and innovative services that succeed in the healthcare market.

There is a risk of failure to anticipate or influence changes in the governmental and regulatory environment which may impact Falck’s customers and service delivery, altering the viability or profitability of the business. Falck’s business is subject to government and regulatory policy, including insurance and conduct rules such as minimum wage requirements, reimbursement mechanisms, changes to tax regimes and the interpretation of existing tax practices and pricing controls. The significant governmental and regulatory responses to the pandemic have shown that future legislation, regulation and government funding decisions could have a material impact on Falck.

Planned mitigating actions:

Falck will continue to monitor changes in laws and regulations locally and globally and train the organisation to ensure compliance on a day-to-day basis and maintain a dedicated focus on privacy challenges in connection to cloud services and medical records. Likewise, Falck will continue training and assessments of efficacy of processes and controls on a yearly basis.

Falck is pursuing a global approach to attraction, employer branding, recruitment and onboarding. This strategy involves aligning and professionalising talent acquisition processes and tools, sharing best practices and upskilling personnel. Specific initiatives will be implemented to address challenges in critical areas, such as actively using social media to build awareness and pride, exploring partnership opportunities and improving working conditions.

Falck is focused on further strengthening its risk-based cybersecurity framework and processes along with business continuity and recovery plans for defined threats and attacks. Full implementation of the cybersecurity fortification and recovery plan will be ensured, following defined deadlines for all included actions. Revision of the plan and deadlines, and re-prioritisation of its steps will also be performed if necessary to secure feasibility and timely implementation.

The development of a technology modernisation roadmap and comprehensive plans for further digitalisation, including investment in upskilling employees, remains a key focus. Further investments in new products or services are continually evaluated based on cost-return analysis and their potential for broader access in targeted societies or locations. Falck will continue to monitor external factors and the pace of global digitalisation that may impact the company.

Falck will continue to closely monitor its long-term contract pipeline to ensure timely action on identified commercial opportunities. Also, potential strategic implications on Falck’s businesses deriving from any future changes in government or policy regulation will be evaluated to allow for adequate changes to the strategy and business model.

A. Regulatory compliance risk

B. Workforce shortage risk

C. Cyber-attack risk

D. Digital transformation demand

E. Large public sector contract risk

Tax reporting

Falck is committed to being a responsible taxpayer and actively supports measures to prevent aggressive tax planning and tax avoidance. In 2024, the total tax footprint amounted to 30% of the revenue in the 11 material countries.

Falck’s tax policy

The approach and commitment to ethical tax practices are emphasised in Falck’s Global Tax Policy on falck.com. The Tax Policy defines the fundamental principles for Falck’s tax matters in each jurisdiction, ensuring that Falck behaves as a good corporate citizen.

The Tax Policy includes a commitment to being a responsible taxpayer, operating in a sustainable and responsible manner. It ensures that all tax obligations are fulfilled in accordance with applicable laws and regulations. Falck engages in constructive dialogues with governments and business groups, such as the Danish Chamber of Commerce. The policy also emphasises maintaining transparent and cooperative relationships with tax authorities and implementation of a tax strategy that is aligned with the business strategy and the corporate values.

Tax footprint

As part of the commitment to transparency, Falck shares the tax footprint to provide insights into the taxes borne (taxes financially borne by the Group) and collected (taxes collected on behalf of the Tax Authorities) in the material countries, which account for 95% of the total revenue in Falck. In this report, 11 out of 25 countries in which Falck operates are considered material.

A material country is defined as a country in which Falck has one or several entities with combined gross revenue exceeding DKK 100 million.

In 2024, Falck’s tax footprint amounted to DKK 3,447 million, representing 30% of total revenue. Out of this total, 33% was taxes borne and 67% was taxes collected.

The largest contribution to taxes borne comes from taxes related to employees. This reflects that Falck is operating as a service provider with a solid employee base. The second-largest proportion of taxes borne relates to nondeductible Value Added Tax (VAT), which reflects that most services delivered by Falck are classified as VAT-exempt services. Taxes on profits are the third-largest amount.

In terms of taxes collected, the main part consists of taxes on employees with the remaining amount corresponding to net VAT, which corresponds to the difference between the VAT collected on sales (output VAT) minus the deductible VAT paid on purchases (input VAT).

Overview of taxes collected and borne by Falck during 2024

Country-by-country reporting

Falck's country-by-country reporting (CbCR) for the financial year 2024 adheres to the EU directive on disclosures of income tax information. The directive requires a taxpayer to publish this information by EU member state. The requirement is mandatory in Denmark from the 2025 reporting. For 2024 the countries reported separately below correspond to Falck’s seven most material countries representing 90% of Falck Group revenue. The remaining countries are grouped by region (EMEA other countries, North and Latin Americas and APAC).

The information in this table is based on the EU directive and includes intercompany transactions. As a result, not all numbers in this section can be reconciled to Falck’s financial statements.

Compared to the CbCR in the 2023 report the calculation of Revenue and Accumulated earnings has been changed to align with the EU Directive. Income tax numbers are now presented as a positive value if the net result is a tax payable and as a negative value if the balance is in favour of Falck, as per updated OECD guidelines.

Tax governance

Falck’s tax governance aims to ensure compliance with tax regulations and to systematically manage tax risks. This includes establishing clear roles and responsibilities within the organisation, providing regular training on tax matters and engaging with external tax advisers when necessary. The accountability and governance of tax matters, including tax risk management, is outlined in Falck’s Tax Policy.

Falck has made the decision not to appoint a specific board member responsible for tax affairs. Falck takes the stance that the entire Board of Directors must collectively carry the responsibility for overseeing Falck’s tax affairs. This approach emphasises the priority of ensuring responsible tax practices and compliance. The Head of Group Tax provides regular updates to the Audit Committee and to the Board of Directors.

Transfer pricing considerations

From a transfer pricing perspective, Falck’s business model is designed for the entities in each country to operate and service their own country. Furthermore, within Falck, support activities are carried out at the headquarters level to assist the business, allowing each Falck entity to focus on core business operations. This operating model implies that the headquarters acts as a provider of support services to the entities benefiting from these services. Due to this decentralised model, Falck has relatively few types of intercompany transactions, primarily related to management services, which includes, but are not limited to, financial services, IT services, trademark and financing.

Tax planning and use of tax incentives

To maintain competitiveness, Falck uses incentives and tax relief measures implemented by governments in jurisdictions in which Falck has a substantial commercial presence.

Falck does not engage in setting up artificial tax and legal structures in low or zero-tax rated jurisdictions or in non-cooperative jurisdictions. However, Falck may have a presence in low-rate or zero-rate jurisdictions if there is a substantive

and commercial reason for operating there. As stated in Falck’s Tax Policy, Falck has one holding entity and an operating entity in Panama. The discontinuation process of the holding entity in Panama is underway.

In 2024, Falck applied for a special Research and Development incentive for the IT employees in Poland, allowing them special deductions in the computation of their personal income tax liability and withholding taxes.

Furthermore, Falck has applied a special tax credit in Colombia related to investments in development of authority-approved infrastructure projects in zones in Colombia.

Apart from these incentives, no other specific tax incentives have been applied for.

Tax inquiries, audits and litigation

Occasionally, Falck undergoes tax audits pertaining to various tax matters such as VAT, Goods and Services Tax (GST), corporate income tax and transfer pricing. Currently, Falck is actively engaged in tax inquiries and audits in four countries, covering corporate income taxes, VAT/GST, special payroll tax and transfer pricing. These audits are progressing as expected, with constructive communication established with the local tax authorities.

Global minimum tax rules Falck is not expected to be materially impacted by the OECD's/EU's Pillar Two Model Rules and their local implementation. See note 2.6 for further details.

Board of Directors

Profession

Professional board member

Competencies

Board positions

Please refer to Display of Competencies on page 32 for a detailed overview of the competences.

• ISS A/S (Chair)

• Bikubenfonden (Chair)

• Nordic Ferry Infrastructure (Chair)

• DSV A/S (until AGM in March 2025)

• UK P&I

• TT Club

• Frederiksberg Fonden

• Nikolai og Felix Fonden

• Danish Board Leadership Society

CEO of the Lundbeck Foundation and Lundbeckfond Invest A/S. Directorships in two subsidiaries

Please refer to Display of Competencies on page 32 for a detailed overview of the competences.

• Ørsted A/S (Chair)

• ALK-Abelló A/S (Deputy Chair)

• H. Lundbeck A/S (Deputy Chair)

• Nordea Bank Abp (Deputy Chair)

Professional board member

Please refer to Display of Competencies on page 32 for a detailed overview of the competences.

• Apoteket AB

• Schibsted Media ASA

• New Republic PA AB (Chair)

• Carnegie Investment Bank AB & Carnegie Holding AB

• Deezer S.A.

• Swema AB & Swema Instrument AB

Niels Smedegaard

Lene Skole

Ingrid Bojner Chair Deputy Chair

Competencies

Board positions

Please refer to Display of Competencies on page 32 for a detailed overview of the competences.

• Elsass Fonden

• Theramex HQ UK Limited

• IMCD N.V.

Please refer to Display of Competencies on page 32 for a detailed overview of the competences.

• Adapture Renewables Inc.

• Topsøe Holding A/S

• Ejner Hessel A/S

• KIRKBI Burbo Extension Holding (UK) Limited, a fully owned subsidiary of KIRKBI A/S

Please refer to Display of Competencies on page 32 for a detailed overview of the competences.

• DSB SOV (Chair)

• The Danish SDG Investment Fund (Chair)

• Erhvervslivets Tænketank

• Member of The Systemic Risk Council

• Gösta Enboms Fond

• Dronning Margrethe II’s Arkæologiske Fond (Chair)

Committee memberships

• Remuneration and Nomination Committee

• Audit Committee

• Audit Committee (Chair)

Dorthe Mikkelsen

Thomas Lau Schleicher

Peter Schütze

Competencies

Please refer to Display of Competencies on page 32 for a detailed overview of the competences.

Please refer to Display of Competencies on page 32 for a detailed overview of the competences.

Please refer to Display of Competencies on page 32 for a detailed overview of the competences.

Stefan Fyhn Gregersen

Christian Jesper Vagn Flink Møller Pedersen

Engvad Madsen

Board positions

• Reddernes Landsklub (Chair)

• Falck Healthcare A/S

Executive Management

Riis

President and Group CEO

Member of the Executive Committee

Group CFO Member of the Executive Committee

SVP, Employee and Labour Market services Joined Falck

Educational background

MSc and PhD, Forestry and Econometrics, Faculty of Science, University of Copenhagen

MSc Actuarial Science, University of Copenhagen

Master of Law, University of Copenhagen

Career

Prior to joining Falck, Jakob had a 20-year career with Novo Nordisk in commercial roles, i.e. as Executive Vice President North America, Executive Vice President China, Pacific & Marketing and Senior Vice President Global Marketing. He is a member of Falck’s Executive Committee.

Prior to joining Falck, Christian held the position as CEO at Codan Denmark and has previously been Group CFO of Danske Bank and Tryg. He is a member of Falck’s Executive Committee.

Anette joined Falck from a position as Chief Development Officer at Private Hospital Mølholm. Prior to that she was Managing Director at Private Hospital Heart Centre Varde and Head of Health Policy at The Danish Chamber of Commerce. She has also held management positions at the insurance companies Skandia, PFA and Pension Danmark.

Board positions

• Subsidiaries of Falck Group

• H. Lundbeck A/S

• Subsidiaries of Falck Group

• Velliv, Pension & Livsforsikring A/S

• Subsidiaries of Falck Group

• Mariehjemmene Foundation (Chair)

Jakob

Christian Baltzer

Anette Damgaard

SVP, Falck USA

SVP, Falck Ambulance Western Europe and Commercial

SVP, Global Assistance

Joined Falck 2011 2021 2023

Nationality French Danish Danish and Brazilian

Born 1974 1972 1967

Educational background

International commercial executive, Fim France

Career

Prior to joining Falck, Yann held executive positions within M&A, marketing, organisation, operational excellence and core operations at Carrefour in France, Spain and Latin America. In 2007, he joined the private equity fund Tribeca to become president of Group emi.

Yann led Falck Latam as CEO in the period 2011 to 2020 when he joined the Executive Management.

Graduate Diploma in Business Administration, Copenhagen Business School. BA, Electronic Engineering, Universidad Politecnica de Valencia, Spain

Lars joined Falck from a position in ISS where from 2011 to 2021 he was leading commercial execution both locally in the Danish and US subsidiaries and at global level.

Prior to that he held various positions in Rockwool, Capgemini and TDC.

Executive MBA, AVT Business School, Denmark

Sonja joined Falck from a position as European Business Manager at Agria Pet Insurance. Prior to that she was Customer Service Director at SEB Card and at BUPA International (former International Health Insurance Denmark).

Board positions

• Subsidiaries of Falck Group

• Subsidiaries of Falck Group

• Subsidiaries of Falck Group

Yann Hedoux

Lars Dam Jensen Sonja Karaoglan

Joined Falck

Educational background

Career

Board positions

MSc, International Marketing and Management, Copenhagen Business School. MBA, Case Western Reserve University, US

SVP, Direct Care SVP, Chief of Staff SVP, Falck LATAM

Master of Law, University of Copenhagen. Executive MBA, Middlesex University, UK

Master’s degree in mechanical engineering, ICAI, Universidad Pontificia de Comillas, Madrid. MBA, Hass School of Business, University of California Berkeley, US

Nille joined Falck from a position as Global Group CEO at Atlas Antibodies. She has also been a member of Philips’ Global Leadership Team and has a background from several pharma companies.

Camilla joined Falck from a similar position in COWI, which she held for 10 years. Prior to this, Camilla held a position as Head of Division in the Danish IT and Telecom Agency, among others.

Gorka joined Falck from a position as CEO of Falabella Insurance Colombia. Additionally, he has 7 years of experience from strategy consulting in both Accenture and McKinsey.

• T. Hansen Gruppen A/S

• ROPCA ApS (Chair)

• Endpoint ApS

Nille Askvad Hviid Klæbel

Camilla Krohn Gorka Vigara de Otazu

Lars Tue Toftild

Henrik Amsinck SVP, Falck Eastern Europe VP, CIO

Joined Falck 2017 2022

Nationality Danish Danish Born 1972 1961

Educational background Graduate Diploma in Business Administration, Copenhagen Business School. Executive Master of Business Administration, RSM Erasmus University, Rotterdam

Career Prior to joining Falck, Lars held various leadership positions in AP Moller-Maersk, DFDS and Blue Water Shipping. Lars joined Falck in 2017 as Managing Director of Falck Germany and in 2020 he became head of ambulance and fire activities in Europe.

Master of Science (MSc) Economics, Aarhus University. IMD, Switzerland

Henrik joined Falck from a position as CIO of the LEGO Group for 15 years and part of LEGO Corporate Management. In addition to this, Henrik has executive experience from the Fast-Moving Consumer Goods (FMCG) industry, telecom and confectionary industries.

Board positions • Subsidiaries of Falck Group • DSB SOV • Eltronic A/S • Scandinavian Tobacco Group A/S

Sustainability statement

Our sustainability commitment

We want to advance sustainable healthcare while reducing our climate impact. At the same time, we strive to secure a diverse, equal and safe workplace built on trust

Advancing sustainable healthcare is what we do

In an ever-changing world, peoples’ healthcare needs and expectations constantly evolve.

The demand for individual and societal healthcare services will rise steadily due to societal megatrends like ageing populations, a rising number of multimorbid individuals and scientific advancements, which will lead to new treatment opportunities and generate additional demand. Meanwhile, healthcare systems throughout the world are already under immense pressure.

In parallel, accelerating climate change is intensifying the demand for emergency care, necessitating more resilient response systems and a robust healthcare sector overall. Last, but not least, the healthcare sector in itself accounts for 4-5% of global CO2 emissions1 .

Accordingly, healthcare services need to be optimised and reinvented, and we need to transform systems to meet the high demands and overcome future challenges. Solving the healthcare system’s challenges requires partnerships across public and private actors. We need to create and scale new healthcare solutions, ensuring safe treatment and better use of resources for the benefit of citizens, employees and society.

We work closely with public healthcare authorities and provide a supplement to the established healthcare systems. In this regard, we continuously aspire to:

•Ease critical moments – to alleviate the distress and negative impacts of critical healthcare moments

•Enable equal access – to deliver care to diverse populations

•Build resilient communities – to ensure adaptable and sustainable healthcare for individuals and society

Falck’s sustainability strategy is tightly linked to the corporate strategy, Care for More ’27, as both aim to deliver on these aspirations. We want to advance sustainable healthcare while reducing our climate impact. At the same time, we strive to secure a diverse, equal and safe workplace built on trust.

Key achievements

In 2024, we progressed on our sustainability strategy and targets in line with expectations through the accomplishment of important milestones and deliverables, i.e.:

•Number of services delivered remained at a consistently high and stable level of 9.5 million

•CO2 emissions (scope 1) were reduced by 3.1%

•Falck’s science-based emission targets for scopes 1, 2 and 3 were approved by the Science Based Targets initiative (SBTi)

•Engagement score among employees increased to 76 (74) and thereby exceeded the target set

•Gender diversity split for Senior Management was at 40%/60%, achieving the target of 40% of the underrepresented gender by 2025

•Lost Time Injury Rate (LTIR) improved from 14.9 to 12.9

•Employee Code of Conduct training was executed with high levels of participation (91% in 2024), which has increased significantly compared to 2022 (81%)

Preparing for future EU legislation

While progressing on our sustainability strategy and targets, we proactively prepared for forthcoming EU legislation throughout 2024.

Falck is required to comply with the Corporate Sustainability Reporting Directive (CSRD) in 2025. To prepare for this, we have revised this year’s report structure and content of the sustainability statement inspired by the European Sustainability Reporting Standards (ESRS).

As part of preparing for future requirements, we have completed a preliminary Double Materiality Assessment (DMA). The DMA guides us in relation to the priorities of our stakeholders and employees and defines the future reporting obligations and actions required to ensure progress in key areas while mitigating negative impacts and risks.

The DMA outcome has not only underpinned but also expanded our sustainability strategy and governance, which were subsequently updated in 2024.

Finally, we have strengthened our ESG data foundation by establishing strong reporting processes and implementing new reporting tools to ensure readiness for CSRD alignment.

In 2025, we will

•Continue to optimise operations, reinvent services and transform systems to advance sustainable healthcare

•Continue to implement CO2 reduction initiatives for the operations and value chain

•Continue to take good care of ourselves by working on diversity, equality and inclusion (DEI) and safety initiatives

•Further invest in processes and tools to improve sustainability across the value chain, including due diligence processes

•Further strengthen the integration of sustainability into the corporate strategy

•Explore additional targets and metrics within areas already deemed material

•Increase ESG data maturity, particularly within CO2 emissions scope 3 and data regarding working conditions

•Be ready for CSRD-aligned reporting and limited assurance

General information

General information

(partly covered) The

Basis for preparation

The sustainability statement encompasses Falck’s reporting on Environmental, Social and Governance (ESG) matters. From 2025, Falck will be obliged to comply with the EU Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS).

The data included in the sustainability section have been consolidated according to the principles applied to the consolidated financial statements, and the reported data have been aligned with the reporting period of the consolidated financial statements.

The aim of the 2024 report has been to adapt as much as possible to the fundamental structure of the ESRS and to include the disclosure requirements as far as possible. For a detailed overview of the ESRS disclosure requirements that have been partly included in this report, please refer to the tables at the beginning of each of the sections: General information, Environmental information, Social information, and Governance information.

The remaining parts of the ESRS disclosure requirements, which are only partly covered this

year and other disclosure requirements that are mandatory or material for Falck but not reported on this year, will be included in the 2025 Annual Report.

General accounting policies and restatement principles

The accounting policies have been applied consistently throughout the financial year and for comparative figures. The detailed and specific accounting policies and definitions are described next to the relevant data points and tables in the respective sections: General information, Environmental information, Social information, and Governance information.

Baselines and comparative figures are restated as and when structural changes within Falck or changes in methodology collectively reach predefined significance thresholds. Restatement is also performed if material errors are identified in prior-year reporting. The materiality of any error is assessed on a case-by-case basis. Details regarding restatements can be found in the detailed accounting policy sections.

The calculation of CO2 emissions uses estimation methods for scope 3 in general and for scope 1 and 2 where precise data are unavailable. Where estimates and extrapolations are applied for the different scopes of emissions, these are described in the Accounting policy and definitions, CO2

emissions, total under Climate change on page 64.

No other significant estimates or judgements have been used for the disclosures and data points included in the sustainability statement.

For definitions of applied time horizons, please refer to Material impacts, risk and opportunities on page 57.

Danish Financial Statements Act

The sustainability statement covers statutory reporting on Corporate Social Responsibility (CSR) in accordance with section 99a of the Danish Financial Statements Act.

The statutory statement on section 99d regarding data ethics can be found under Corporate Governance on page 30.

External limited assurance

Falck has obtained limited assurance as to the following sustainability data disclosed in this report:

•CO2 emissions, scope 1

•Lost Time Injury Rate

•Employee engagement (eSat score)

The limited assurance has been provided to the lenders in regards to the ESG-linked bank loan facility.

The limited assurance engagement was performed by the independent auditors performing the audit of Falck’s Financial Statements.

Sustainability governance

In 2024, we reviewed and updated our ESG governance based on the preliminary Double Materiality Assessment (DMA) results. However, the overall anchoring and accountability have been maintained.

Falck’s Board of Directors approves targets, strategy and Double Materiality Assessment, the Audit Committee oversees ESG reporting processes and controls, and the Executive Management bears the overall responsibility, setting the direction and ambition for targets. The ESG data and reporting programme was continued in 2024, supporting our efforts in preparing for CSRD compliance in 2025 (it is a temporary programme).

Management teams in relevant business units and global functions manage initiatives through workstreams. To capture all material and mandatory data points, we have revised and optimised the organisation of these workstreams so it reflects the DMA results.

We monitor progress via an ESG dashboard and report externally on an annual basis and internally on a quarterly basis. In 2021, we established a long-term credit facility linked to selected ESG targets, including CO2 reduction (scope 1), Lost Time Injury Rate, and employee engagement.

The Board of Directors and the Audit Committee receive regular updates on ESG matters, including updates on ESG reporting processes and controls.

The Board of Directors has approved this Annual Report, the preliminary DMA results, the updated sustainability strategy, Falck’s ESG governance and the overall key activities for mitigating negative impacts and risks. The methodology applied for the DMA and the ongoing work to ensure a robust foundation for ESG reporting processes and controls have been recommended to the Board of Directors by the Audit Committee.

Further information about the Board of Directors’ composition, experience, expertise, skills, and activities related to sustainability matters, as well as Falck’s overall governance structure, can be found in the section on Corporate Governance on page 28.

ESG-related incentive scheme

GOV-3 Integration of sustainability-related performance in incentive schemes

Falck’s short-term incentive programme includes sustainability-related performance metrics. The ESG KPIs affect in total 20% of the incentive programme, and the incentives are linked to the performance as regards CO2 reduction (5%), employee engagement (5%) and Lost Time Injury Rate (10%); see section on Remuneration on pages 28 to 30 and the Remuneration Report on Falck’s global website for more details.

Core elements of due diligence

GOV-4 Statement on due diligence

The table below provides an overview of how Falck applies the core elements of due diligence procedures for people and the environment and where these elements are presented in the sustainability statement.

Core elements of due diligence

Pages

a) Embedding due diligence in governance, strategy and business model 49, 50, 51, 52, 62

b) Engaging with affected stakeholders in all key steps of due diligence 51, 54, 55, 56

c) Identifying and assessing adverse impacts 54-59

d) Taking actions to address those adverse impacts 60, 63, 70, 73, 76, 78, 80, 83, 87, 88

e) Tracking the effectiveness of these actions and communicating results 63, 64 70, 71, 72, 74, 75, 76, 77, 81, 82, 88, 90

Risk management and internal controls

GOV-5 Risk management and internal controls over sustainability reporting

Falck is in the process of establishing governance for its sustainability reporting similar to the governance applying to Falck’s financial reporting. Material misstatement risks related to ESG reporting processes will be mitigated by effective controls for the data points in Falck’s 2025 report. Significant progress has been made in 2024. The Audit Committee monitors the progress of the maturity of ESG reporting processes and controls to ensure that Falck will be ready to comply with the CSRD requirements from 2025. The Executive Committee leads the implementation of appropriate internal controls over Falck’s sustainability reporting.

1

Sustainability strategy

Our efforts under the Care for More ‘27 strategy for delivering individual and societal care within preventative, acute and rehabilitative services are connected to the sustainability strategy. The value Falck creates by easing critical healthcare moments, enabling equal access and building resilient communities as outlined in the business model is supported by our environmental, social and governance targets and performance.

Stakeholders

SBM-2 Interests and views of stakeholders

Falck partners with and supplements the public sector in delivering healthcare services. We have mapped stakeholders across the value chain and assessed whether each individual stakeholder or stakeholder group can be categorised as an affected stakeholder. Based on our services and this analysis, we have identified the following six groups as affected stakeholders of Falck’s business:

Society at large

• Adolescence - 13-19 years

• Young adulthood - 20-39 years

• Middle adulthood - 40-59 years

• Late adulthood - 60+ years

In 2024, we updated the sustainability strategy to incorporate results from the preliminary DMA, while ensuring alignment with the purpose and the value Falck creates. The outcome of the DMA has not only reaffirmed but also expanded the sustainability strategy and commitments. We aspire to advance sustainable healthcare while reducing our climate impact. Simultaneously, we strive to ensure a diverse, equal and safe workplace built on trust. See our updated strategy on the following page.

The plan for 2025 is to further integrate sustainability into Falck’s corporate strategy.

• Media

• Nature

Customers and end-users

• Business to business (B2B)

• Business to government (B2G)

• Business to consumers (B2C)

• Business to insurance (B2I)

Politicians and interest groups

• National, regional and municipal politicians and administration

• Policy makers

• Unions

• Health organisations

• Patient organisations

• Partners

Suppliers/collaborators

• Innovation hubs/associations

• Research institutions

• Chamber of Commerce

• External trainers

Banks and investors

• Analysts and investors

• Investment banks

• Financial journalists

Employees

• Current employees

• Potential employees, i.e. healthcare students

The section related to ESRS IRO-1 details the double materiality process under the section Double materiality process and method applied, and the section related to ESRS IRO-2 details the materiality assessment result under Double materiality result on page 53. In both sections, we describe how the stakeholder analysis has informed and affected impacts, risks and opportunities (IROs).

Material impacts, risks and opportunities

The material IROs identified during the preliminary materiality assessment are described and presented in tables under Material impacts, risks and opportunities on pages 57 to 59 and under Double materiality result on page 53. The identified material IROs which are reflected in the updated strategy and ESG governance relate to the following ESRS:

•E1 - Climate change

•S1 - Own workforce

•S4 - Consumers and end-users

•G1 - Business conduct

Sustainability Policy

The updated Sustainability Policy on falck.com is aligned with Falck’s sustainability strategy, outlining our commitment to supporting society and contributing to socially, environmentally and economically sustainable development. It reaffirms Falck's status as a UN Global Compact signatory and Falck’s adherence to international standards such as the Universal Declaration of Human Rights, the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work, the Rio Declaration on Environment and Development, and the UN Convention against Corruption. The policy, which is applicable to all Falck employees, is accessible via Falck’s internal management system, GEMS, and Falck’s corporate website.

SBM-1 Strategy, business model and value chain

Double materiality result

A Double Materiality Assessment (DMA) has been carried out to assess Falck’s impact on the world and the risks and opportunities for Falck’s business within ESG topics.

The preliminary DMA results show that several impacts, risks and opportunities (IROs) have been assessed as exceeding the applied materiality thresholds. Ten ESG topics were deemed material, and we have consequently started ESRS-inspired reporting on most of these topics this year and will elaborate further on the ESRS disclosure requirements in the 2025 reporting.

The method applied is described under Double materiality process and method applied on page 54. The ten material topics are described in more detail in tables under Material impacts, risks and opportunities on pages 57 to 59.

All non-material topics are displayed at the bottom left corner of the matrix to the right. These topics were deemed non-material due to the nature of Falck’s business.

IRO-2 Disclosure Requirements in ESRS covered by the undertaking’s sustainability statement

Double materiality process and method applied

During the period from September 2023 to March 2024, we conducted a preliminary DMA in accordance with the guidelines issued by the European Financial Reporting Advisory Group (EFRAG), an EU advisory board. In the course of this process, we shortlisted ESG topics and identified and scored impacts, risks and opportunities (IROs). This work comprised assessments of positive and negative impacts as well as risks and opportunities through a granular and explorative process using a bottom-up approach divided into four steps:

1.Understanding activities and business relationships, the context in which these operate (value chain) and affected key stakeholders

2.Identification of IROs across the value chain

3.Assessment of the IROs identified 4.Determination of material/non-material ESG topics for reporting

In step 1, we performed explorative desk research on sustainability matters, which was supplemented by discussions with internal experts. In step 2, we supplemented these discussions with insights collected through interviews, further desk research and Falck’s risk register, which is part of the general enterprise risk management framework.

Based on the stakeholder groups described in the section on Sustainability strategy on page 51, we

conducted 18 semi-structured interviews with stakeholder representatives for each group to collect insights on potential and actual positive and negative impacts (Falck’s impacts on the world) and financial impacts on Falck’s business (risks and opportunities).

In steps 3 and 4, IROs were assessed and materiality criteria applied. Following this bottom-up approach, we shortlisted 75 sustainability matters with corresponding IROs relevant to Falck.

Double Materiality Assessment method

The DMA excluded mitigation actions which are already part of Falck’s daily operations. This means that the assessments of ESG topics were based on inherent impacts, risks and opportunities.

Assessment method and criteria

Each IRO was assessed in accordance with the ESRS requirements, and impacts have been evaluated in terms of severity (scale, scope and irremediability) and likelihood, while financial risks and opportunities were evaluated in terms of magnitude and likelihood.

Assessment of impact materiality

To perform the impact assessment, we combined the three severity factors (scale, scope and irremediability) by averaging the scores for each

impact, using a scale from 1-5. The severity score was then placed on the vertical axis and the likelihood of occurrence on the horizontal axis (see ‘The criteria for impact / financial materiality’ to the right). In the case of an actual impact, the likelihood score was always set to 5. In addition, severity took precedence over likelihood for human rights-related impacts, which is in line with ESRS 1.

Assessment of financial materiality

To assess the financial materiality, the magnitude score (scale 1-5) for each risk and opportunity was placed on the vertical axis and the likelihood of occurrence on the horizontal axis (see matrix). For both assessments, IROs with a high severity/ magnitude (scale 5) were deemed material irrespective of a very low/limited likelihood. However, if the likelihood was assessed to be high or certain/actual, only the IROs which were assessed to be at least significant were deemed material (see matrix). In summary, all IROs above the applied threshold (i.e., significant or essential) were assessed to be material topics for Falck. The topics can be:

1.Impact material

2.Financial material

3.Double material (impact and financial material)

These applied threshold criteria are in line with the EFRAG guidance and aligned with Falck’s general enterprise risk management approach (ERM).

IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities

Value chain

The value chain is the foundation for defining and assessing the IROs, as it outlines our services and products from conception to delivery and end-of-life, defined as follows:

•Upstream: Activities related to material extraction, manufacturing and maintenance

•Operations: Activities include training, transport, sales and delivery of healthcare services and sales of products

•Downstream: Activities include the outcome for end-users of our services, the use of products, and end-of-life, including waste and recycling.

Due to differences in upstream, operations and downstream activities and stakeholders within Falck’s business, the value chain is divided into three parts:

1. Fleet dependent services

2. Non-fleet dependent services and

3. Physical products

The value chain with its three parts is illustrated in the overview to the right and on the next page. Stakeholders are assessed based on their relationships to our upstream, operations and downstream activities, as also illustrated in the value chain overview.

• Falck coming to patients/ users

• Material extraction – steel, wood, oil-based products from nature

• Product manufacturing –vehicles, equipment, consumables, etc.

• Assembly/refurbish

• Spare parts for fleet

• Conversion

• Facilities (stations, offices, etc)

• Maintenance of assets

Stakeholders

• Nature

• Value chain workers

• Suppliers/collaborators

• Sub-suppliers

Non-fleet dependent services

• Patient/user coming to Falck (physical/virtual)

• Material extraction (steel, wood, oil-based products)

• Product manufacturing (equipment, consumables)

• Facilities (clinics, offices)

• Maintenance of assets

Stakeholders

• Nature

• Value chain workers

• Suppliers/collaborators

• Sub-suppliers

• Training (education) of paramedics

• Training (education) of fire-fighters

• Employees

• Trainers (employees and external)

• Society at large

• Contract bidding

• Subscriptions

• Call centre (sales)

• Early engagement

• Training (education) of healthcare experts

• Upskilling

• Customers (B2B, B2C, B2I, B2G)

• Politicians and interest groups

• Ambulance

• Fire services and prevention

• Patient transport

• Healthcare at home

• Roadside and civil assistance

• Travel and security assistance

• Quality of Service

• Health & Safety

• Data privacy

• Patient outcome

• Selling off vehicles

• Recycling

• Waste (e.g., medical consumables and equipment)

• Subscriptions

• Call centre (sales)

• Contracts

• Employees

• Banks and investors

• Society at large (incl. Nature)

• Politicians and interest groups

• Employees

• Customers and end-users

• Patients/end-users

• Society at large

• Society at large (incl. Nature)

• Healthcare treatment and guidance

• Travel and security assistance

• Safety equipment and guidance

• Employees

• Trainers (employees and external)

• Society at large

• Customers (B2B, B2C, B2I, B2G)

• Politicians and interest groups

• Employees

• Banks and investors

• Society at large (incl. Nature)

• Politicians and interest groups

• Quality of Service

• Health & Safety

• Data privacy

• Patient outcome

• Waste/recycling (e.g., medical consumables and equipment)

• Employees

• Customers and end-users

• Society at large

• Patients/end-users

• Society at large (incl. Nature)

Fleet dependent services

SBM-1 Strategy, business model and value chain

Value chain

Physical products

• Selling of products/time

• Product management

• Material extraction – steel, wood, chemicals, oil-based products from nature

• Product manufacturing –equipment, first aid equipment etc.

• Facilities (production site, offices, etc)

• Maintenance of assets

• Production of fire prevention products (external suppliers)

• Assembly of first-aid equipment

• Packaging (fire prevention and first-aid)

• Recycle set-up of fire extinguisher (test, refill, service etc.)

• Shipping

• Last-mile delivery

Stakeholders

• Nature

• Value chain workers

• Suppliers/collaborators

• Sub-suppliers

• Suppliers/collaborators

• Value chain workers

• Employees

• Policy makers

• Nature

• Suppliers

• Value chain workers

• Employees (minimal)

• Safety equipment and guidance

• Fire services and prevention

• Employees

• Banks and investors

• Customers

• Safe use

• Environmental impact

• Clean-up (chemicals etc.]

• Disposal of products

• Waste/recycling

• Customers

• Nature

• Local communities

• Suppliers (waste management)

• Policy makers

Material impacts, risks and opportunities

All ten material sustainability topics disclosed in this statement are listed in the tables on this and the following pages.

The tables assess each IRO's impact and financial materiality, indicating whether the impact is actual or potential, positive or negative, and whether the financial materiality is a risk or an opportunity. The materiality scoring is also described, and so is the relation to the value chain position and time horizon.

A sustainability matter can be material in the short, medium or long term. The determination of time horizons for IROs is crucial in when impacts, risks or opportunities may occur. ESRS 1 defines standardised terms for time horizons and allows for entity-specific horizons for the medium and long term.

We have defined time horizons for all IROs in line with the recommendations in the ESRS:

•Short term: Falck’s reporting period as applied in this annual report.

•Medium term: Up to 5 years following the short-term horizon.

•Long term: More than five years following the short-term horizon.

Emissions from own operations and value chain (mitigation)

Impact materiality

Financial materiality

We have a significant negative impact related to our CO2 emissions, where the most substantial portion (71%) originated from the value chain activities in scope 3, followed by scope 1 (25%) and scope 2 (4%) during our 2022 base-line year. The main contributor to scope 3 emissions is the procurement of upstream goods and services, while mobile combustion is the principal contributor to scope 1 emissions and the second largest emissions category in our baseline. The significant negative impact on the environment occurs in the short, medium and long term.

We have a significant risk related to expected cost increases stemming from current and future regulations, for example carbon tax. We see this risk in our upstream activities and own operations in the medium and long term.

Climate change adaptation activities (adaptation)

Impact materiality

Significant negative impact

Financial materiality

We have an actual positive impact on climate change adaptation, as our ambulance, fire, travel security and assistance services contribute to societal preparedness against the physical risks posed by climate change. The impact is related to our operations and downstream activities in the short, medium and long term.

We see a significant risk as regulatory and physical requirements are increasing due to climate change (e.g., moving our operations due to hurricane Milton in the US) from adapting to climate change in our operations and downstream and on a short, medium and long term.

positive impact

SBM-3 Material impacts, risks and opportunities and how they interact with strategy and business model

S1 Own workforce

Equal treatment (gender equality, diversity training and skills and harassment prevention)

Impact materiality We see a significant potential negative impact in the case of neglecting equal treatment, diversity, equality and inclusion, as this can lead to discrimination and harassment. This impact could occur in our operations relating to our workforce and is relevant in the short, medium, and long term.

Financial materiality There is a significant risk of reputational damage and costs from harassment claims if Falck fails to meet societal expectations and regulations on equal treatment, diversity, equality, and inclusion. This risk affects our business in the medium and long term.

Health and Safety

Impact materiality Neglecting health and safety of our employees could result in severe accidents and negative mental health impacts on our workforce. This significant potential negative impact could occur in our own operations in the medium and long term.

Financial materiality There is a significant financial risk related to reputational damage and direct costs of health and safety incidents, that could occur in our operations in the medium and long term.

Working conditions own workforce (wage and non-wage related)

Impact materiality The potential significant negative impact relates to low engagement amongst our staff if there were poor wageand non-wage related employment conditions including unequal wages between people with the same job level and between genders. The potential low engagement could have a negative impact on own operations in the short, medium and long term.

potential negative impact

S4 Consumers and end-users

potential negative impact

Topic Description

Social impact on end-users

Impact materiality Falck has an essential actual positive impact on our endusers by providing healthcare services globally through our operations and downstream, in the short, medium and long term.

Financial materiality We see an essential opportunity to capture the societal evolution and development of healthcare needs in society in our operations and downstream, in the short, medium and long term.

Data privacy

Financial materiality There is a significant risk of patients losing trust in Falck’s ability to protect and handle sensitive patient data and information amidst data leak threats. This risk could occur in our operations and downstream in the long term.

actual positive impact

opportunity

risk

G1

Business conduct and governance

Corporate culture

Impact materiality We see a significant potential negative impact if we fail to uphold a responsible business culture, both on the environment and society. We see this potential impact in our operations in the medium and long term.

Whistleblower protection

Impact materiality We recognise a significant potential negative impact on our own workforce if whistleblowers face repercussions for raising concerns. This can lead to employees, stakeholders and third parties being less likely to report incidents in the future, leading to undetected incidents. This impact is in our operations in the medium term.

Corruption and bribery

Financial materiality We see a significant risk for reputational damage in the case of any occurrences of corruption and bribery in our upstream activities and operations in the medium and long term. From a gross-risk perspective, the likelihood exists due to the geographical coverage of Falck’s operation.

Working on material sustainability matters

While already working and reporting on Falck's key sustainability matters, we are still in the process of establishing appropriate procedures and actions to fully mitigate impacts, risks and opportunities.

The figure illustrates how we are working on material IROs, and we consider this approach to be in line with the requirements set out in the ESRS standards.

Looking at the figure from the top, it is clear that the materiality assessment results form the basis of Falck’s sustainability strategy and are connected to the corporate strategy.

The core of the sustainability due diligence procedures, displayed in the middle of the figure, is to administrate, review and update IROs.

To mitigate and administrate those, we have established (or are in the process of establishing) appropriate policies, targets and actions, and we follow up on progress for the metrics and targets defined.

The circle shape indicates that administrating impact, risks and opportunities is an on-going annual process.

On this basis, the double materiality result will be reviewed on a regular basis, taking into consideration evolving structural changes in Falck, trends, underlying assumptions and context as well as regulatory changes.

For the purpose of closing gaps in relation to CSRD readiness, we apply a structured approach for material topics. This includes a detailed plan for data gap closure to ensure readiness in due course and agreement of roles and responsibilities.

Finally, to track progress as well as to promote data quality and efficiency, we have implemented a new reporting production tool. We are strengthening the ESG data foundation by establishing an ESG data warehouse. The ESG data warehouse will collect and validate data from both internal and external sources.

Environmental information

The table shows how we are inspired by ESRS standards and where we have partly included information related to mandatory and material ESRS disclosure requirements in this report.

E1-SBM-3

E1-7

E1-8

E1-9

Climate change

Transition plans

E1-1 Transition plan for climate change mitigation

Our commitment

We want to reduce adverse impacts from our operations and value chain and align targets with the Paris Agreement

Our approach

The conclusions of the Intergovernmental Panel on Climate Change (IPCC) are clear: We must limit long-term average global temperature rise to no more than 1.5°C above pre-industrial levels to prevent millions of climate change-related deaths and avert severe health impacts on society. 2024 was the first year to cross the 1.5°C threshold1, showing the urgency for action. As a healthcare company, we take responsibility for averting such impacts through our services and offerings.

By optimising operations, reinventing services and striving to transform the healthcare sector, we want to advance sustainable healthcare while reducing climate impact. We aim to further develop our business model and corporate strategy to support the Paris Agreement.

To underline our commitment, we have submitted near-term (10-year) CO2 reduction targets to the Science Based Targets initiative (SBTi) covering scope 1, 2 and 3. SBTi has subsequently approved the targets – which are:

•50.4% absolute reduction of scope 1 GHG

emissions by 2032 from a 2022 base year

•50.4% absolute reduction of scope 2 GHG

emissions by 2032 from a 2022 base year

•30% absolute reduction of scope 3 GHG

emissions by 2032 from a 2022 base year

Our two CO2 targets since 2021 (50% CO2 reduction of total scope 1 by 2030 and 50% CO2 intensity reduction scope 1 (tonnes/revenue) by 2030) have been replaced by the new near-term science-based targets stated above. The overall plan to achieve the near-term targets is in place. In addition, we are developing localised transition plans for the entire business and our value chain to deliver reductions.

From setting the first CO2 targets in 2021, we have worked systematically to reduce scope 1

mobile combustion emissions. For smaller vehicles, electrification is simpler than for ambulances. All new company cars (companypaid cars provided to managers and selected employees) are required to be electric, and we are committed to electrifying as many as possible seated patient transport vehicles. We have committed to making 90% of the Danish seated patient transportation electric, with other locations following as infrastructure and operational requirements allow.

Electric ambulances are currently being tested in Denmark and Spain. For ambulances and other larger vehicles, the transition is more complex, as electrification continues to pose challenges due to high performance requirements. This means that Falck needs to find levers beyond the electrification of vehicles.

Impacts, risks and opportunities

E1-IRO-1 Description of processes to identify and address

We have identified the following material climate-related IROs based on our preliminary DMA.

Climate change mitigation

Emissions arising from Falck’s operational and upstream activities have a significant negative impact in the short, medium and long term.

In our baseline year 2022, the most substantial portion (71%) of all our CO2 emissions originated

from the value chain activities in scope 3, followed by scope 1 (25%) and scope 2 (4%). The main contributor to scope 3 emissions is the procurement of upstream goods and services, while mobile combustion is the principal contributor to scope 1 emissions and the second largest emissions category in our baseline. Therefore, we need to explore various mitigation measures across our operations and value chain, such as electrifying the fleet and transitioning to renewable energy sources, improving procurement policies, innovating business models, and value chain engagement.

Financially, we see a significant risk related to the transition and expected cost increases stemming from current and future regulations, for example carbon taxes. We see this risk in the medium and long term.

Climate change adaptation

Falck’s service offerings have a significant, actual positive impact on climate change adaptation. This is because our ambulance, fire, travel security and assistance services contribute to societal preparedness against the physical and psychological risks posed by climate change. As physical risks and related regulatory requirements are increasing, climate change adaptation is also financially material to Falck. Our climate change adaptation activities are mainly relevant in the downstream operations (customers and end-users) in the short, medium and long term.

Climate policies

E1-2 Policies in place related to climate change mitigation and adaptation

To support our sustainability efforts relating to the environment, we have implemented several policies and standards. All policies and standards can be found in Falck’s internal management system, GEMS, and the policies are also available on Falck’s global website.

Environmental Policy and Standard

Falck’s Environmental Policy on falck.com outlines the commitment to advance healthcare while reducing the climate impact from our activities. The policy describes our approach to taking action in a science-based manner, aligning with the Greenhouse Gas Protocol and reporting accordingly in the annual report.

To support the efforts on climate change mitigation and adaptation, we introduced a new Environmental Management Standard in 2024. The standard reinforces our commitment to a science-based approach to addressing environmental impacts and encourages employees to consume resources responsibly.

CO2 reductions in incentives schemes

E1-GOV-3 Integration of Sustainability-related performance in Incentive schemes

CO2 reduction is included in Falck’s short-term incentive programme as described under Corporate Governance on page 28 and under Remuneration on page 30.

What we did in 2024

E1-3 Actions and resources in relation to climate change policies

Key actions

•We had our near-term (10-year) science-based targets approved by SBTi.

•We developed our first Climate Transparency report (externally verified under ISO14064-1), covering scope 1, 2 and 3 baselines.

•We developed localised SBTi-aligned transition plans for our Danish consumer-facing patient transport services, for roadside assistance services (both part of Individual Care Europe) and for Falck Teknik (part of Industrial Fire services).

•We launched customer and supplier engagement initiatives.

In 2025, we will

•Develop more localised SBTi-aligned transition plans in Societal Care Europe and add other locations.

•Further develop the framework of environmental standards and procedures.

•Implement internal carbon pricing (shadow pricing).

•Engage key strategic suppliers on climate performance and their transition plans.

•Continue improving our GHG accounting procedures.

Targets and metrics

E1-4 Targets related to climate change mitigation and adaptation

In 2021, Falck established two climate-related targets relating to direct CO2 emissions, one measured in absolute terms and the other relative to revenue. As mentioned above, these targets have now been replaced by the near-term (10-year) science-based targets approved by SBTi.

Falck has not set net zero targets, and only intends to once we have demonstrated effective progress towards our near-term targets.

CO2 reductions

Gross scope 1, 2 and 3 (E1-6 Gross scope 1, 2 and 3) Scope 2024

*Baseline year 2022

1) Biogenic emissions are not included in scope 1 emissions, which is in line with the GHG protocol. Biogenic emissions amounted to 4,583 tonnes of CO2 for the baseline year 2022, 4,350 for 2023, and 3,633 for 2024.

Our CO2 emissions from mobile combustion (scope 1) have decreased by 3,764 tonnes since 2022 (baseline year) and by 1,411 tonnes since 2023 to 44,782 tonnes in 2024. This is an 7.8% decrease since 2022 and a 3.1% decrease since 2023. The decrease is mainly due to the exit from CO2-intensive ambulance contracts in Western Europe and increased electrification of our fleet.

Carbon credits

E1-7 - GHG removals and GHG mitigation projects financed through carbon credits

Falck does not use any carbon credit-financed GHG removal and Falck does not have any GHG mitigation projects.

EU Taxonomy

Falck is currently assessing the effects of the implementation of the EU Taxonomy, pursuant to Article 8 of EU Regulation 2020/852 (the Taxonomy Regulation), which Falck must adhere to from 2025.

Accounting policy and definitions

CO2 emissions

The indicator is defined as total CO2e emissions (CO2 equivalent) measured in tonnes. CO₂e is categorised into three scopes according to the methodology of the Greenhouse Gas Protocol Corporate Standard (GHG Protocol). The three scopes reflect where the emissions appear across the value chain and to what extent the company has control over those emissions.

Scope 1 emissions refer to direct burning of fossil fuels by either mobile (vehicles) or stationary (generators, heating systems, etc.) combustion.

ISO certifications

In 2024, we maintained our ISO 14001 environmental management multi-site certification, which is valid until 2026. This certification confirms that Falck meets the ISO criteria for an environmental management system, covering how we manage our environmental performance.

The ISO 14001 Environmental Management certification covers ambulance services in Sweden and Spain, fire services in Italy, Portugal, Romania,

the production of products purchased or acquired by Falck in the reporting year.

Slovakia, Spain, the Netherlands and the UK as well as the headquarters in Copenhagen. In addition, Falck’s greenhouse gas (GHG) accounting procedures were verified in 2024 under ISO 14064-1. During the independent limited assurance process, the methodology and results of the 2022 baseline were reviewed, ensuring that our accounting approach is in line with ISO and the Greenhouse Gas Protocol. See Falck’s Climate Transparency Report.

Other scope 1 emissions (such as fugitive emissions from air conditioning or fire suppression systems) are not material for Falck.

Scope 2 emissions refer to indirect emissions from the consumption of electricity purchased (or otherwise brought within Falck’s organisational boundary) to operate machinery, lighting, charging of vehicles or other equipment. Furthermore, scope 2 includes emissions from the consumption of heat, cooling and steam purchased (or otherwise brought within Falck’s organisational boundary) to heat and cool office spaces and buildings.

Scope 3 emissions are the most significant for Falck and pertain to emissions from sources that Falck neither owns nor directly controls (other indirect emissions). Falck accounts for the following material scope 3 GHG Protocol category emissions (emissions exceeding the 1% threshold):

• Categories 1 & 2, Purchased goods and services & capital goods: All upstream emissions from

Products include both goods (tangible products) and services (intangible products).

• Category 3, Upstream fuel and energy: Emissions related to the production and distribution of fuels and energy purchased and consumed by Falck in the reporting year that are not included in scope 1 or scope 2.

• Category 4, Upstream transportation and distribution: Emissions from the transportation of products purchased in the reporting year, delivered from Falck’s direct suppliers to our own operations by vehicles not owned or operated by Falck (including multimodal shipping where multiple carriers are involved in the delivery of a product, but excluding fuel and energy products).

• Category 5, Waste generated in operations: Emissions from third-party disposal and treatment of waste generated in Falck-owned or Falck-controlled operations in the reporting year. This category includes emissions from the disposal of both solid waste and wastewater.

• Category 6, Business travel: Emissions from the transportation of employees for business-

related activities in vehicles owned or operated by third parties, such as aircraft, trains, buses and passenger cars.

• Category 7, Employee commuting: Emissions from the transportation of employees between their homes and their worksites. Emissions from employee commuting may arise from automobile travel, bus travel, rail travel, air travel and other modes of transportation.

• Category 9, Downstream transportation and distribution: Emissions from the transportation of products sold by Falck, delivered to customers by vehicles and facilities not owned or controlled by Falck.

• Category 12, End-of-life treatment of sold products: Emissions from waste disposal and treatment of products sold by Falck (in the reporting year) at the end of their life.

CO2 emissions are calculated in accordance with the GHG Protocol based on an operational control model, which is in line with the financial control model. The emissions reported by Falck are in line with the scope of the consolidated financial statements.

For scope 1 emissions, the number of litres (separated by fuel type and type of combustion) is multiplied by the relevant emission factor from the UK Government GHG Conversion Factors for Company Reporting (UK GOV, 2023). The emission factors are updated annually.

For certain locations, it has not been possible to obtain exact fuel data from our suppliers or internal systems. In these cases, emissions were

calculated based on one of three types of data: kilometre data; expenditure data; estimations and/or extrapolations based on key business or operational metrics.

Scope 2 emissions are calculated based on electricity consumption data (kWh) for Falck facilities and vehicles as well as heat consumption data (GJ) for Falck facilities. The consumption amounts are applied to either UK Government GHG Conversion Factors, Association of Issuing Bodies (AIB) factors or in limited cases another appropriate emission factor.

Where primary activity data were not available, expenditure or proxy (extrapolated) data were used to estimate scope 2 emissions. When using expenditure data or the spend-based method, the amount of purchased electricity or heat is multiplied by a relevant spend-based emission factor. When using a proxy method, the electricity and heat consumption is extrapolated based on a similar operation and geographic location based on the number of FTEs.

Emissions from purchased electricity are calculated using both the location-based and market-based methods, but only market-based numbers are included in this report.

The location-based method calculates total emissions using the grid's average emission factors for the specific geographic area. The market-based method uses emission factors for the residual mix, which is the electricity mix excluding the portion with a known origin, such as those identified through Energy Attribute

Certificates (EACs). Falck does not currently use any EACs, but prioritises market-based emissions reporting as it will show progress from any future investments in renewable energy.

Scope 3 emissions are primarily calculated by multiplying the expenditures for each category by the relevant emission factor. If the supplier has provided specific emission factors or if more accurate data are available (e.g. kilometres for travel), those are used. If not, generic industry emission factors are applied, taking into account the activity, geography and any other relevant information to provide a more accurate estimate of emissions.

Scope 3 emissions from waste management are calculated using Falck's waste generation data and national statistics on waste management routes, with proxies used when data are unavailable. This includes waste from Falck's operations and end-of-life treatment of sold products. The climate change impact from fuel, electricity and heat production and distribution is based on input data from mobile combustion, purchased electricity and purchased heat.

Reported CO2 emissions are calculated for Falck entities and operations which are part of the current group structure (i.e. excluding entities divested in prior years). The details are covered by Falck’s recalculation standard.

In line with the GHG Protocol, biogenic emissions (from biofuels) are reported separately and are not included as part of scopes 1, 2 or 3.

Restatement

In accordance with Falck’s restatement principles, CO2 emissions from mobile combustion (scope 1) reported in the 2023 Annual Report have been restated from 2021 due to methodological changes and data quality improvements. Specifically, emissions stemming from biofuel are now separately reported, emissions stemming from Industrial Fire services are now included and the emission factors used, which were previously sourced from the US Environmental Protection Agency (EPA), are now sourced from the UK Department for Environment, Food and Rural Affairs (DEFRA). These changes resulted in reported emissions (measured in total tonnes) restated for 2021 from 54,504 tonnes to 54,531 tonnes, for 2022 from 53,544 to 48,546 and for 2023 from 50,788 to 46,193.

Accounting policy and definitions

CO2 emissions, relative

CO2 emissions, relative, are defined as indicator CO2 emissions, total tonnes, divided by revenue in millions of DKK from the current group structure (i.e. excluding entities divested in prior years) and excluding antigen testing activities.

Restatement

CO2 emissions, relative for 2021, 2022 and 2023 reported in the 2023 Annual Report have been changed due to the changes in CO2 emission figures mentioned above. Thus, CO2 emissions, relative, have been restated for 2021 from 4.86 to 4.65, for 2022 from 4.53 to 4.04 and for 2023 from 4.26 to 3.88.

Emissions stem from the entire value chain (scopes 1, 2 and 3)

Social information

Processes for engaging with employees

Own workforce

Our commitment

To take good care of others, we need to take good care of ourselves

S1-2 Processes for engaging with own workforce

Falck continuously provides opportunities for all employees to offer feedback and ideas throughout their entire lifecycle with the company, using various listening mechanisms. This approach allows us to collect valuable employee feedback, which drives analytics to identify potential challenges, enabling us to take corrective action. By addressing employee concerns and fostering a supportive work environment, we ensure that employees feel heard and valued.

We use a combination of tools to gather employee feedback, including:

•Value Talks

•Falck Global Engagement survey

•Onboarding and exit surveys and interviews

•Engaging with employee representatives

Our approach

We are committed to care, and to care for others, we need to take care of ourselves. That is why we continuously promote engagement, diversity, health and safety among our employees. We want Falck to be an attractive and healthy workplace that allows everyone to thrive and develop - across countries and cultures, genders, age and diversity of thought. Being a people business, we are dedicated to fostering an employee-centric culture where every individual has the opportunity to share their ideas, concerns and needs. We recognise that the key drivers of an attractive and healthy work environment can vary from person to person, influenced by individual values, personal situations, experience levels and life circumstances.

Value Talks

All managers are encouraged to conduct yearly dialogues with their employees. This provides an additional opportunity for employees to voice any concerns and feedback directly to their manager. Falck provides specific training for managers to prepare an engaging dialogue to connect with employees.

Falck’s Global Engagement survey

Each year, we conduct a global employee engagement survey as a way to continuously improve Falck as an attractive and healthy place to work. Read more about the results of this year’s Engagement survey below.

It is mandatory for all managers to act upon employee feedback through the employee engagement survey and document a concrete action plan. In 2024, 5,000 actions were implemented across organisational levels. These plans are created in collaboration with employees to ensure they focus on what matters most to them.

Onboarding and exit surveys

The onboarding survey is for all new Falck employees and provides an opportunity to give feedback early on in a confidential way. Employees are invited to provide comments on their experience during the first months of employment, including feedback on their managers.

Exit surveys include questions on diversity, inclusion, respectful treatment and ethics. This helps us gauge the workplace environment and identify any areas in need of attention. These questions are also part of the onboarding and Global Engagement survey, allowing us to track developments during the employees’ engagement with Falck.

Engaging with employee representatives

In Europe, our employee representatives are part of the European Work Council. Falck organises three meetings with the European Work Council – one official meeting in November or December and two informal meetings during the year, to follow up on the employee engagement survey and related topics. The annual meeting is held to discuss employee-related topics, e.g., ESG, Diversity, Equality and Inclusion (DEI) and the Falck Global Engagement Survey.

Policies related to our own workforce

S1-1 Policies related to own workforce

Falck has several policies in place to support the engagement of our own workforce, including the Employee Code of Conduct, DEI efforts, health and safety and working conditions. All relevant policies can be found in the internal management system, GEMS, and on the corporate website falck.com.

Employee Code of Conduct

Falck’s Employee Code of Conduct outlines Falck’s Winning Behaviours: Three guiding principles on how we act towards customers, society and each other. Furthermore, the Code of Conduct requires that all Falck employees must comply with applicable laws, policies, standards and procedures, holding each other accountable and reporting any violations. The policy explains the roles and responsibilities of employees and managers in upholding these principles, including clear guidance on what is expected from Falck employees regarding the covered topics: respecting people, health and safety, anti-bribery and anti-corruption, conflicts of interest, gifts and hospitality, communication, safeguarding information and responsibility to the environment. The policy also includes Falck’s zero-tolerance statement for unethical business conduct, corruption and bribery. The Employee Code of Conduct applies to all Falck employees and contractors and is part of mandatory training.

Diversity, Equality and Inclusion (DEI) Policy

Falck's Diversity, Equality and Inclusion Policy was updated in 2024 and emphasises the

commitment to diversity, inclusion, equality, respect and anti-discrimination. Falck defines diversity as intersectional and multifaceted, meaning it includes those with visible and/or hidden differences as well as diverse backgrounds and mindsets. We commit to an inclusive culture where all employees feel valued and empowered to speak up without fear of retaliation.

Furthermore, we underline our commitment to ensuring equal opportunities and a balanced gender composition, especially at management level. The policy applies to all Falck employees. Information regarding respecting all employees is conveyed through the Employee Code of Conduct training, which employees must participate in every two years. All new employees take the training in connection with their onboarding.

Health and Safety Policy

The goal of Falck’s Health and Safety Policy is to integrate attention to health and safety into our culture. The focus of the policy is on our employees, who should be able to thrive in a safe and healthy work environment. The policy describes Falck’s approach to health and safety based on measurable targets, clear roles and responsibilities and prioritisation of suppliers and business partners meeting Falck’s standards. The policy applies to all Falck employees.

Employees are covered by insurance policies, including worker’s compensation. The duration of time away from work in connection with occupational injuries is determined by the injured party’s private medical practitioner. The health and safety policy is further described in specific standards and procedures within Falck’s internal

management system (GEMS) as well as in the Employee Code of Conduct.

Human Rights Policy

The Human Rights Policy establishes ethical guidelines and communicates our dedication to protect human rights for employees and external stakeholders, including business partners and customers. Our approach to human rights covers human rights protection; labour conditions; child labour and young workers; forced, bonded labour and human trafficking; work hours, wages, and compensation; trade union-bargaining as well as discrimination and harassment.

The Global People & Culture department is responsible for detailing the supporting activities. Leaders at every level within Falck are accountable for consistently upholding the policy, and all employees are expected to adhere to its guidelines. As and when the policy is revised, local People & Culture directors must engage with local labour unions and employee representatives. The policy also refers to Falck Alert, our whistleblower system, and reinforces our DEI and Health and Safety Policies.

The Human Rights Policy was updated in 2024 and applies to everyone associated with Falck and encompasses both internationally and locally protected human rights, ensuring that Falck employees and others are safeguarded against any human rights violations. All employees receive training on Falck’s Human Rights Policy as part of their Employee Code of Conduct training.

What we did in 2024

S1-4 Taking action on material impacts, risks and opportunities

Key actions

•We aimed to engage with all managers to create actions targeting low engagement scores (<60 on a 0-100 scale) in four areas:

•Engagement / satisfaction <60

•Respectful treatment <60

•Recommend immediate manager <60

•Safety environment <60

•We analysed 25,000 comments from the engagement survey to develop action plans.

•We created 5,000 actions across Falck to improve employee engagement.

•We improved employee data maturity by creating dashboards for management, following up on data sourcing and aligning local and global processes.

•We improved onboarding processes based on feedback from onboarding surveys.

In 2025, we will

•Maintain the overall Falck employee engagement score (76).

•Ensure all managers share the survey results with their teams and create an action plan by February 2025.

•Require teams with scores below 60 in the following areas: Engagement, Recommend manager, Respectful treatment, and Safety to develop an action plan for improvement by February 2025.

Targets and metrics

S1-2 Processes for engaging with own workforce

Since 2021, we have worked towards a target of increasing the employee engagement score to 75 by 2025, but in 2024 we increased this target to 76. This score is based entirely on employee responses to the question: "How happy are you with working at Falck?".

Employee engagement target 76 Engagement score (eSat) in 2025

Baseline year 2021: 72

Employee engagement increased

The engagement score for the Falck Group increased from 74 in 2023 to 76 in 2024, driven by positive developments in almost all business units. Therefore, we revised the 2025 target to maintain the high 2024 level (76).

The specific focus on teams with low scores, particularly on four selected questions (scores below 60 in four key areas), has resulted in fewer low-scoring teams compared to 2023. The overall employee engagement measured for the aggregated European business segments was 76 in 2024. The engagement score among employees in Societal Care Europe reached 75, while the score reached 78 in Individual Care Europe and 76 in Industrial Fire services.

In the Americas, the overall employee engagement score was 77 in 2024. Employees in the Individual Care LATAM business segment reported an engagement score of 81, while the equivalent score in Societal Care US came to 62.

Apart from the increased engagement (eSat) score, other very positive developments have been registered, as illustrated in the employee engagement survey 2024 overview.

Purpose score remains at very high level

The score on Falck’s purpose was again very high, at 86, compared to the external global benchmark (79) from Glint Inc. The score is based on responses to the statement: “The work I do at Falck is meaningful to me”.

The purpose score was unchanged from 2023 (86), indicating that Falck provides a purpose-

driven and meaningful workplace where employees contribute to saving and improving lives every day.

In the coming years, we will strive to continuously improve employee engagement and implement more actions and initiatives to support the main asset – our employees. This year’s result shows that we are on the right track.

Employee engagement survey 2024 (change compared to 2023 results)

•21,790 invited (+278)

•27 questions (+1)

•23 scores improved (-1)

•0 scores deteriorated (0)

•72% response rate (same response rate as in 2023)

•25,203 comments (-1,086)

•25 countries included (+1)

Purpose

•score of 86 on purpose (86) “The work I do at Falck is meaningful to me”

Recommend Manager

•score of 80 on recommend manager (+2) “I would recommend my manager to others”

Employee characteristics

S1-6 Employee characteristics

The tables in this section provide details about the employee base across business segments in Europe and the Americas, with respect to gender split and type of employment.

Employees per segments

The majority of Falck’s 25,433 employees work in Europe, which is 66% of the total workforce. The largest business segment, Societal Care Europe, employs over 10,000 people, which is 40% of the total workforce. More than 8,000 employees are employed in the Americas. The majority of Falck’s employees are employed on permanent contracts (68%), while the share of temporary employees make up 11% of the total workforce. Employees with non-guaranteed hours constitute 21%, mostly found in Societal Care Europe. These employees are critical for Falck in allowing us to respond to fluctuating demands in emergency healthcare. The split between employees with guaranteed and non-guaranteed hours is not currently available for Societal Care US, but it is expected to be presented in next year’s report.

The gender balance in our Societal Care business segments shows a higher representation of men, with 77% in Europe and 73% in the US. Conversely, women in Individual Care Europe make up a larger share (59%) . More information about gender split and Falck's actions to improve diversity can be found in the section Diversity, equality and inclusion on page 73.

Employees

Employees per main markets

The majority of Falck’s 25,433 employees work in Denmark (7,082), Colombia (3,972), the US (3,113), Spain (1,859), Poland (1,697) and Sweden (1,643). Across all countries, most employees are on permanent contracts (68%), while temporary employees make up 11% of the workforce, and 21% are on non-guaranteed hours contracts.

We strive for diversity and inclusion in various areas, including recruitment, training, and workplace culture. Regarding the gender split across Falck, 67% of employees are men, where this high distribution is seen in Denmark (76%), US (71%), Germany (74%), Spain (76%) and Poland (73%). Conversely, in our Swedish and Norwegian markets, the majority of employees are women (68% in both countries).

Employee turnover rate

The turnover rate increased slightly to 30.6% in 2024 from 28.2% in 2023. Turnover remains high in certain areas, particularly Individual Care LATAM (50.2%) and in Societal Care US (41.3%). Therefore, attraction and retention of staff continues to be both a risk and a focus area going forward.

Employees per country, gender and type of employment

Accounting policy and definitions, Type of employment

Permanent employees are defined as employees who have an employment contract with Falck for guaranteed hours and without an ending date.

Temporary employees are defined as employees who have an employment contract with Falck for guaranteed hours and with a fixed ending date.

Non-guaranteed hours employees are defined as employees who have an employment contract with Falck, but who do not have a guarantee of a minimum or fixed number of working hours. This includes employees who are only called on duty if a catastrophe occurs and therefore have a limited employment relationship with Falck.

Accounting policy and definitions, Employee engagement survey

Employee engagement is defined as the average employee engagement score on the question “How happy are you with working at Falck?” in the annual Falck Global Engagement survey for the relevant financial year. It is measured on a scale of 0-100. The survey was conducted by the Global People & Culture department using the Glint system in autumn 2024.

All employees invited to participate in the survey must have at least one employment contract with Falck (permanent contract or temporary contract) and must have started their employment before a decided cut-off date (24 August in 2024). The following groups are not included in the employee engagement survey:

• Employees who ended their employment before a decided cut off date (14 October in 2024).

• Freelancers/sub-contractors (defined as individuals who have a work contract with Falck but do not receive the same benefits as an employee) and employees with nonguaranteed hours due to the limited employment relationship with Falck.

Accounting policy and definitions, Employee characteristics and employee turnover rate

The gender composition for all employees is shown by business segment, and all employees are furthermore divided into age groups. The employees included in these tables are employees who have at least one employment contract with Falck (permanent contract or temporary contract).

Employee data are managed centrally in compliance with the General Data Protection Regulation (GDPR) guidelines. In most instances, Falck is not currently recording if employees identify as non-binary. However, in the future, all employees will have the option to choose a gender category that aligns with their identity.

To comply with GDPR regulations, the 'non-binary' category is merged with the 'men' category in disclosed gender diversity figures in this report.

The employee turnover rate is defined as the number of employees who left the organisation during the year (regardless of the reason for their departure), expressed as a percentage of the average number of employees (headcount) for the same period.

Diversity, equality and inclusion

Impacts, risks and opportunities

S1-SBM-3 Material impacts, risks and opportunities

If we neglect equal treatment, diversity, equality and inclusion, Falck risks causing significant negative impacts on our own workforce, such as discrimination and harassment. This potential negative impact could occur in our own operations relating to our own workforce and is relevant in the short, medium and long term.

Financially, there is a significant risk of reputational damage and costs from harassment claims, if Falck fails to meet societal expectations and regulations on equal treatment, diversity, equality and inclusion. This risk could affect our workforce in the short, medium and long term.

What we did in 2024

S1-4 Taking action on material impacts, risks and opportunities

Key actions

•We added an inclusion question to the Global Engagement Survey to enhance the DEI focus.

•We expanded Employee Code of Conduct training to create harassment and discrimination awareness.

•We provided global e-learning courses on bias, including unconscious and interviewing bias, for talent acquisition and hiring managers.

•We began development of a job architecture framework to enable more advanced gender pay gap analysis.

•We enhanced dashboards and granted managers access to DEI data, showing gender diversity by workforce.

•We updated our DEI Policy to incorporate equality.

In 2025, we will

•Commit to a workplace free from harassment and discrimination, by encouraging leaders to address any 'Inclusive Workplace' scores of 1 or 2 on a 5-point engagement survey scale by discussing them with their own leaders and the People & Culture team.

•Aim to increase the percentage of employees working in a harassmentfree environment from 95% to 97%.

Targets

and metrics

S1-5 Targets related to managing impacts, risks and opportunities for DEI

To promote gender diversity at management levels and generate a positive cascading effect, we have set targets for equal representation at a minimum of 40% of the underrepresented gender at three levels of the Falck organisation; the Board of Directors, Executive Management and Senior Management.

Gender diversity, management, targets

40%

40%

40%

Board of Directors (underrepresented gender/total)

Executive Management (underrepresented gender/total)

Senior Management (underrepresented gender/total) by 2025

Baseline year 2022 (for Senior Management target)

S1-9 Diversity

Gender composition, management and employees, Falck Group1

Senior Management diversity target achieved An important milestone was reached for our Senior Management level, as we strive towards a representation of the underrepresented gender of at least 40% by 2025. We achieved this target in 2024 as the current representation is 40%.

In addition, we have maintained the target level of gender representation on the Board of Directors with a 50/50 split. At the Executive Management level, we have achieved a 36/64 gender composition. According to the guidelines issued by the Danish Business Authority this composition meets the criteria for equal representation, as it aligns with the closest possible ratio to a 40/60 split.

Accounting policy and definitions, Gender diversity

For the Falck Group, this indicator measures the percentage of individuals from the underrepresented gender on the Board of Directors, in the Executive Management team, in the Senior Management team, as well as among other Falck managers and all Falck employees at the end of the year.

Executive Management is responsible for the day-to-day management and operations of Falck.

The Senior Management team consists of managers who report to an Executive Management member and have at least one employee reporting to them.

Other management include managers who do not report to an Executive Management member and have at least one employee reporting to them.

All employees include employees who have at least one employment contract with Falck (permanent contract or temporary contract).

Gender composition

The bar charts illustrates the gender composition across various business segments, highlighting areas of opportunity for better gender balance. At total level, 33% of Falck’s employees are women and 67% are men. The most balanced gender representation is seen in Individual Care Europe and LATAM, with 59% and 45% women, respectively. In Societal Care Europe and US, women constitute 23% and 27%, respectively of the total, which presents an opportunity for increased women’s representation in this area.

Overall, while men are predominant in most segments, these insights can guide efforts towards fostering a more equitable workplace. Particularly within the Ambulance and Fire businesses, where most employees are men. This is a historical and structural issue; however, we are in the process of implementing new aids to minimise heavy lifting and hence lower physical entry requirements.

Age composition

The chart shows Falck’s age composition by age group. 26% of our workforce are aged under 30, 48% are between 30-50 years of age and 26% are over 50 years of age. In our view, this is a diverse age composition.

Training and skills

S1-13 Training and skill development

Our people are our most important asset, and we strive to create a positive impact on our workforce by offering engaging training and development opportunities that enable our employees to achieve their potential and

ambitions. This commitment benefits our operations in the short, medium and long term.

We are in the process of defining further metrics for the training and skills area, but Falck generally offers the following training and skills platforms and opportunities:

•Global academy, an online platform accessible to all Falck employees offering courses in English, Danish, Spanish and German and to some extend also in Norwegian and Polish

•Falck Learning provides the following e-learning courses:

•Improve leadership skills

•Enhance clinical excellence

•Become better at recruiting

•Grow as a facilitator

•We provide frontline training for our employees involved in emergency response and safety services.

Human rights

S1-17 Incidents, complaints, and severe human rights impacts

Our commitment to providing remedies for human rights impacts is reflected in our procedures and remediation processes. Please refer to the section regarding Remediation processes on page 86 for more information on how we remediate potential negative human rights impacts.

Health and safety

Impacts, risks and opportunities

S1-SBM-3 Material impacts, risks and opportunities

The preliminary DMA showed significant potential negative impacts in the event that Falck neglects health and safety. Such neglect could result in accidents and negative mental health

impacts on our own workforce. Furthermore, there is a significant potential financial risk of reputational damage and direct costs of health and safety incidents. The impacts and risks related to health and safety are connected to Falck’s own operations and to protecting Falck’s own workforce and contractors in the medium and long term.

Targets and metrics

S1-5 Targets related to managing impacts, risks and opportunities

Falck has established targets for reducing the lost time injury rate and for zero fatalities:

Lost Time Injury Rate target

y-o-y-reduction) in 2027

Baseline year 2021: 17.1 Fatalities target

Key actions

•We developed a ‘Train the Trainer’ concept, which we cascaded into a safety leadership training programme for relevant leaders, the objective being to ensure that leaders engage on safety in a structured and informed way.

•We included safety leadership as an integral part of our leader onboarding programme, ‘Start2Lead Safety’, a programme for new employees and as follow-up action on low scores to the safety question in the engagement survey.

•We published monthly group safety performance reports and shared them with Executive Management, the Board of Directors and Business Unit Health and Safety staff.

•We further improved our data maturity related to health and safety by continuously working on creating one source of data for the entire organisation.

•We initiated a discovery project to find out how to reduce manual handling injuries by 75% by 2028.

•We initiated a Proof-of-Concept study on how AI can support the registration and management of safety risks and sub-optimal conditions in the work environment.

•The business units initiated specific action plans based on local safety challenges; these action plans are discussed monthly.

•The Global Health and Safety function analysed reported data monthly and pinpointed areas for improvement.

In 2025, we will

•Continue to work to reduce manual handling injuries.

•Initiate a discovery project on how to reduce slip, trip and fall injuries.

•Implement a common health and safety incident reporting and management system.

•Expand and strengthen the role of the Global Safety Community into a Global Safety Action Forum.

In 2024, 562 (586 in 2023) Lost Time Injuries were recorded, and this resulted in an LTIR of 12.9 (14.9 in 2023). While we saw a significant decrease this year, Falck is dedicated to reduce the rate further, acknowledging the efforts needed to reach the 2027 LTIR target of less than 8.8.

The chart below shows that the category of manual handling injuries causes the most absence days (29%). The category includes injuries when transporting or supporting an object or a person by hand or bodily force. The category slip, trip and fall injuries is the second largest (23%). In 2025, Falck will launch initiatives to reduce these injuries. External factors like a car hitting an ambulance account for 18%. Other causes, like poor road infrastructure and equipment defects, account for 30%.

Zero fatalities

We do not accept fatalities as part of delivering our services. We did not suffer any fatalities in 2022, 2023 or 2024. Our goal is to maintain zerofatality operations in the long term.

Working hours include regular working hours, overtime, on-call and any additional hours or shifts and absences.

The scope of reporting includes all Falck employees who have at least one employment contract with Falck (permanent contract or temporary contract) as well as contractors working for Falck (freelancers/sub-contractors, defined as individuals who have a work contract with Falck but are not entitled to the same benefits as an employee). The reporting encompasses injuries that occurred within the reporting year and were reported before midJanuary of the following reporting year.

Accounting policy and definitions,

Lost Time Injury Rate

The Lost Time Injury Rate (LTIR) is calculated by determining the number of lost time injuries per million working hours. A lost time injury (LTI) refers to a work-related incident causing the injured person to be unable to continue normal work and resulting in absence from work from the day after the injury.

An incident is considered to be work-related if the incident or exposure in the workplace caused or contributed to the condition or significantly aggravated a pre-existing condition. Contagious diseases are not included unless a direct causal link can be established. Furthermore, incidents where an employee suffers an injury while commuting from home to work or vice versa are not included.

Restatement

LTIR for 2021, 2022 and 2023 reported in the Annual Report 2023 have been restated due to errors found in the calculation of working hours for a few Falck entities. Thus, LTIR has been restated for 2021 from 16.5 to 17.1, for 2022 from 14.3 to 14.8 and for 2023 from 14.2 to 14.9. The target for 2027 remains unchanged.

Fatalities

This indicator encompasses any fatalities that occur in connection with a work-related incident, regardless of the time elapsed between the injury and the subsequent death. The scope of this indicator includes Falck employees, freelancers and subcontractors.

Working conditions

Impacts, risks and opportunities

S1-SBM-3 Material impacts, risks and opportunities

Our Double Materiality Assessment (DMA) showed significant potential negative impacts if there is low engagement amongst our staff. The potential negative impact relates to low staff engagement in the case of poor wage-related and non-wage-related employment conditions, including unequal wages between people with the same job level and between genders. The potential low engagement could have a negative impact on our own operations in the short, medium and long term horizon.

Wage-related working conditions

Adequate wages

S1-10 Adequate wages

Falck compensates employees based on the conditions in the relevant industry and local labour market, and in accordance with terms of applicable local collective bargaining agreements. In addition, Falck adheres to all relevant local laws and regulations relating to working conditions, including adequate wages, also in countries where there is no minimum wage in place (e.g. in Denmark).

Over the coming years, we are implementing a job architecture and a global Human Resource Information System (HRIS), known as PeopleHub, across various countries. Among other benefits, these initiatives will provide a foundation for increased transparency and enable the

monitoring of wage levels. We will establish these monitoring processes as the system is rolled out.

Work-life balance

S1-15 Work-life balance

As part of our engagement survey, we ask employees about their work-life balance. In 2024, Falck’s employees scored 75 in average in regards to this question, which was 2 points higher than last year’s result and 3 points above the external benchmark. We see variances across countries, but our engagement survey provides an initial overview of our employees’ assessment of worklife balance. In addition, Falck encourages all managers to have a dialogue with their team members on work-life balance based on findings from the engagement survey and in connection with Value Talks and on-going dialogues.

Non-wage-related working conditions

Collective bargaining and social dialogue

S1-8 Collective bargaining and social dialogue

Working conditions are highly regulated by collective agreements and local legislation. Falck maintains close dialogues with unions and employee representatives (e.g. through the European Works Council and national councils) to ensure the best possible output of the collective agreements, both for employees and for Falck. We have collective bargaining agreements in place in the majority of the countries in which we operate.

What we did in 2024

S1-4 Taking action on material impacts, risks and opportunities

Key actions

•We have collected insights on collective bargaining agreements for Denmark, Sweden, Spain and Germany, where between 80% to 100% of employees are covered by such agreements.

•In Europe, we have introduced a time registration system in compliance with the EU directive to monitor working hours, ensuring that any potential overtime is balanced or minimised.

•Mental well-being was discussed as one of the key topics at the Falck Global Leadership Meeting in H1 2024 with participation of 120 global leaders.

In 2025, we will

•Establish a job architecture and initiate the implementation of the new PeopleHub (Human Resource Information System (HRIS)) and thereby gather additional employee data for analysis and reporting.

•Begin collecting data on family related leave as an indicator of employee worklife balance.

•Conduct an analysis of adequate wages in countries where data is available.

•Conduct an analysis of social protection coverage.

•Conduct an analysis of workplace representation in EEA countries with significant employment.

•Ensure local spot-checking of compensation data quality.

Data Ethics Policy

S4-1 Policies related to consumers and end-users

Social impact on end-users

Disclosure requirements (partly covered)

The table shows how we are inspired by ESRS standards and where we have partly included information related to mandatory and material ESRS disclosure requirements in this report. S4

S4-SBM-2

S4-SBM-3

S4-1

S4-2 Processes for engaging with consumers and end-users (Not reported on this year)

S4-3 Processes to remediate negative impacts and channels for consumers and end-users to raise concerns

S4-4

S4-5

Our commitment

Every day, we go to work to improve and save lives, and we want to innovate and enhance access to healthcare for more people

Falck’s Data Ethics Policy on falck.com outlines the overall ethical principles guiding us in how we use data in accordance with the principle that human interests prevail over data. Falck is committed to being transparent and to explaining our purpose of and interest in using data through privacy notices. This policy applies to all employees and partners working with Falck.

Ownership of the Data Ethics Policy lies with the Chief Information Officer (CIO). We have set up a data ethics working group composed of representatives from global functions and business segments. This group acts as an advisory board, offering guidance to both local and global management on matters related to data ethics.

Our approach

Falck contributes to driving societal value by providing individual and societal care, and each time we complete an ambulance trip, provide a treatment or deliver rehabilitation services, we typically improve at least one person's life –sometimes with significant impact. By optimising services, for example by converting to electric vehicles, by reinventing services, for example by providing telecare instead of physical consultations, and by transforming healthcare systems, for example by providing healthcare at home, we advance sustainable healthcare on a daily basis.

The working group has the responsibility of the development of Falck's data ethics principles and will regularly report to the Executive Management on data ethics concerns.

Social impact on end-users

Impacts, risks and opportunities

S4-SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model

The most material topic for Falck - in terms of both impact and financial materiality - is the health and safety related to consumers/endusers. We consider this as our social impact. Falck has an actual, essential and positive impact on society given the nature of our core business of providing healthcare services across the world.

Furthermore, there is a material and essential financial opportunity for Falck in capturing the societal evolution of healthcare needs and in continuing to innovate our services for the benefit of end-users and the societies we operate in. Thus, we see an opportunity in innovating our own operations as well as downstream activities in the short, medium and long term.

What we did in 2024

S4-4 Actions relating to impacts, risks and opportunities and effectiveness of those actions

Key actions

•We launched Mobile Care in the US to serve an increasing number of end-users at home.

•We founded the non-profit Falck Health Institute (FHI), which hosted a National Emergency Medical Service (EMS) Educator Association Instructor course, actively recruiting students from historically underrepresented groups.

•We published our second edition of Falck’s Mental Health Barometer in Denmark, based on a national survey conducted in Denmark encompassing 3,000 respondents. The survey focuses on mental health and examines how the Danish population ranks on the WHO's well-being index.

•We provided essential support and ensured the safety of affected communities in Florida after Hurricane Milton and in Valencia after the flood in November 2024.

•We examined how Falck can innovate services to care for more people in the future through Project Periscope, which identifies trends shaping the future of healthcare.

•We conducted research on the mental health of young Danes (aged 16-24) to develop a framework for meaningful solutions.

•We completed the first phase of the Health in Every Corner project in Colombia, providing free subscriptions for families to our home and virtual healthcare services.

In 2025, we will

•Work within the Falck Health Institute (FHI) to create solutions for those who cannot afford medical training, utilising our workforce development agencies for support.

•Continue the improvement of healthcare at home services to optimise operations and the patient experience.

•Explore new service opportunities from Project Periscope, such as preventative care and chronic disease management.

•Explore synergies of our Healthcare at Home solutions across different markets.

•Develop services based on research and frameworks addressing the evolving health needs of young Danes.

Project Periscope

In 2024, Falck launched Project Periscope, an initiative focused on predicting future healthcare trends and addressing the evolving needs of different population segments. Falck conducted research on the shift and trends pointing towards a possible global future of healthcare. The coming decade will present opportunities within these shifts where Falck can develop new and existing healthcare services to care for even more people. The project aims to inspire, provoke and prompt better questions as Falck decides which services to offer and how they should be designed.

Project Periscope recognises three main health shifts across generations with widereaching repercussions for people’s health and the way they need support from the healthcare system. These shifts include longer life expectancies, earlier onset of long-term conditions, and increasing mental healthcare needs. It also emphasises proactive, connective, democratised, environmentally conscious, and evolving care as fundamental drivers. The project serves as a guiding star for designing future Falck services, aiming to provide better and more accessible care for people.

Targets and metrics

S4-5 Targets related to managing material negative impacts, advancing positive impacts and managing impacts, risks and opportunities

The number of services we provide is crucial to the societies and communities we serve. Therefore, we measure and monitor the number of services and track developments both across and within these services.

Social impact metric

Number of services delivered

9.5 million services delivered

Our highly skilled staff delivered 9.5 million healthcare services in 2024, which was an increase of 1% compared to 2023. The number of services delivered remains consistently high and stable.

The changes in the volume of healthcare services provided in 2024 show:

•The number of Individual Care services increased in both Europe and LATAM. In Europe, the increase was caused by stronger demand for Falck’s pay-on-use services from corporate and public customers, especially in Norway and Sweden. Furthermore, the number of travel and security assistance services increased by 28,000 from 2023 to 2024 due to stronger demand. In LATAM, the increase was mainly due to a notable rise in the use of our services, prompted by higher uncertainty in the market following politically driven changes to the healthcare system.

•The number of services within Societal Care Europe decreased by 275,000 from 2023 to 2024, mainly due to a decline in the ambulance operations contract portfolio as a result of Falck ceasing operations in Stockholm, Sweden, and a reduced contract volume in Denmark.

Preventive, acute and rehabilitative care

Broadly speaking, our services can be categorised into three main areas, all playing a crucial role for improving health:

•Preventive care aims to prevent illnesses, injuries or accidents from occurring (e.g. health education programmes, occupational health courses and first-aid/safety training).

•Acute care aims to relieve people suffering from an illness, condition or accident (e.g. ambulance services, physical and mental health treatments).

•Rehabilitative care aims to help people recover and regain their abilities after suffering from an illness, injury or accident (e.g. physical therapy to support strength and mobility, occupational therapy to help people regain the skills needed for daily living and working and follow-up mental health services to help people recover from mental health conditions).

Across our organisation, we delivered the majority of our services within acute care, accounting for 57% (66%), thereby supporting many people in their time of most need. This included ambulance services and virtual consultations.

Our preventive services account for another large and growing part of our services, adding up to 34% (29%). These services are crucial in helping people avoid critical health situations or workplace incidents.

Although our rehabilitative care services are not as prevalent, representing 9% (5%) of our services, these services are equally important as Falck helps individuals recover and regain their independence, often through physical or occupational therapy.

Accounting policies and definitions, Number of services

The number of services is defined as the sum of healthcare services provided by Falck in Europe and the Americas. The numbers are rounded to the nearest thousand. All services have equal weight, given the definition specific to the type of service.

Societal Care contributes with the number of ambulance trips, patient transports and callouts/ interventions from the public fire services business in Denmark. A trip and a callout/intervention is defined as a response

to a specific incident (scene) by a specific vehicle and team that accepted the call for help at that incident. A specific incident may contain several responses. Responses which are subsequently cancelled are included in the number of services. Falck considers a service delivered if the team was dispatched, even if it does not involve the provision of medical care or transportation to patients. These dispatches can involve informal assessments or confirmations that no treatment is necessary, which reflect our role in ensuring public safety and health. The included number of cancelled responses amounts to approximately 10% in recent years. Prevention services provided by the fire services business are currently not included in the disclosed number of services due to a lack of data.

Individual Care Europe contributes with various types of health services, i.e. healthcare treatment and guidance. Furthermore, Individual Care Europe contributes with patient transport, roadside and civil assistance and travel and security assistance. The definitions are as follows:

• Health services: Unique treatments, consultation, cases, training sessions and services, including billable cancellations. If a treatment/consultation/case/training/service includes several patients/clients, the session is multiplied by the number of participants.

• Labour market services: Unique training sessions and services, including billable cancellations. If a training/service includes several clients, the session is multiplied by the number of participants.

• Courses/Other: Unique training sessions and services, including billable cancellations. If a

training session or service includes several clients, the session is multiplied by the number of participants.

• Patient transport services: Unique trips, including billable cancelled trips. If a single trip includes several patients, the number of patients is counted.

• Roadside and civil assistance: Unique trips, including billable cancelled trips.

• Travel and security assistance: Unique assistance cases, excluding cancelled cases.

Industrial Fire services contributes with callouts/ interventions related to private commercial customers. A service is defined as a response to a specific incident (scene) by a specific vehicle and team that accepted the call for help at that incident. Responses which are subsequently cancelled are included in the number of services if the team was dispatched. Furthermore, Industrial Fire services contributes with the delivery of service inspections related to safety equipment. Sales of safety equipment and fire safety guidance are currently not included as a service as reporting processes have not yet been fully implemented.

Individual Care LATAM contributes with the number of virtual consultations, including healthcare treatment and guidance services, patient transport services and physical consultations and treatments mainly in the patient’s home (Healthcare at home). The consultations and treatments are defined as: unique consultations, treatments and services, including billable cancellations. The definition of patient transports is identical to the definition mentioned under Individual Care Europe.

As mentioned above under both Individual Care Europe and Individual Care LATAM, billable cancelled services, including no-shows or very late cancellations, are included in the number of services for all business areas within Individual Care. Falck considers a service delivered if the provider’s time was blocked, even if it does not involve the provision of the service. The included number of cancelled services amounts to approximately 1% in recent years.

The number of services is also specified by treatment types according to the following definitions:

• Preventive: Services provided to prevent an accident, injury or illness.

• Acute care: Services that provide treatment of an acute condition.

• Rehabilitative: Services that provide rehabilitation after an acute condition.

Data privacy

Impacts, risks and opportunities

S4-SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model

There is a significant financial risk related to data privacy given the high number of patients and the importance of their trust in Falck’s ability to handle sensitive information in connection with data threats. Therefore, we see a potential longterm risk in our own operations as well as downstream, specifically for our customers and their health-related data.

What we did in 2024

S4-4 Taking action on material impacts, risks and opportunities

Key actions

•Through a series of workshops, we actively engaged local data protection coordinators in breach and incident handling to ensure that incident handling is performed as closely as possible to end-users’ touch points with Falck.

•We worked to simplify and refine existing frameworks and processes, partially delegating specific areas such as breach handling to local representatives to ensure greater local responsibility and involvement.

•We actively implemented AI solutions to improve documentation processes and ease access to guidance materials.

•We delivered comprehensive training on data privacy and protection to local subject matter experts, ensuring robust data protection practices are upheld for the benefit of end-users.

In 2025, we will

•Continuously improve internal processes and maintain strong data protection practices to ensure the safety of patient data across business units in line with our defined strategic priorities.

•Engage actively with compliant and sustainable adoption of AI solutions to ensure both continuous compliance with relevant legislation (such as the EU AI Act) and alignment with our Data Ethics and Personal Data Protection policies as well as our Employee Code of Conduct.

Governance information

Disclosure requirements (partly covered)

The table shows how we are inspired by ESRS standards and where we have partly included information related to mandatory and material ESRS disclosure requirements in this report.

Our commitment

We want to conduct business in a way that will never breach the trust of our employees, partners or customers

Our approach

People and societies rely on us every day, which requires us to be a trusted business partner. Trust is vital to our licence to operate, and it is essential that we conduct business in a way that never breaches the trust of our employees, partners, customers or the communities in which we operate. Unfair competition and unethical behaviour lead to higher costs and the erosion of trust.

We conduct our business based on integrity and high ethical standards and in compliance with applicable laws, regulations and in-house policies. We seek to be transparent in the way we operate, being committed to competing for business on fair terms and exclusively on the merits of our services.

We carry out our activities according to corporate governance principles and proactively seek to identify and mitigate compliance risks.

Falck’s winning behaviours

Our ways of working are embedded in our winning behaviours, which guides our attitude and daily activities.

• We are committed to care

• We build trust

• Together, we create more value

Business conduct policies

G1-1 Business conduct policies and corporate culture

To support our corporate culture and governance, Falck has several policies in place in addition to the policies already outlined for our employees in the social section. All policies can be found in our internal management system, GEMS, and for the most part also on the Falck global website.

Anti-Corruption Statement

Falck’s Anti-Corruption Statement on falck.com has been updated in 2024 and outlines Falck’s unwavering commitment to combating corruption and maintaining a zero-tolerance policy in respect of any form of bribery or corruption. This commitment is underpinned by a robust ethical foundation, exemplified by our Employee Code of Conduct, which includes comprehensive training on Anti-Bribery, Anti-Corruption, Gifts and Hospitality, and Conflicts of Interest. Falck ensures compliance with all applicable laws and expects the same from our business partners, which is outlined in our Supplier Code of Conduct. The Falck Alert whistleblower system is available 24/7 for

employees, business partners and third parties to report any concerns. By providing continuous training and resources, we empower our employees to effectively identify and combat corruption. The responsibility for upholding these standards and providing necessary training lies with Falck’s management.

Whistleblower Policy

Falck’s Whistleblower Policy on falck.com outlines the approach, scope and procedure for reporting misconduct. The policy also describes the, whistleblower system, nature of reports, data protection, management responsibility and compliance requirements. It applies to all employees.

Global Statement on Modern Slavery and Human Rights

Falck’s Global Statement on Modern Slavery and Human Rights on falck.com outlines the policies and actions taken by Falck to promote human rights and prevent modern slavery in its business and supply chain. It draws reference to Falck’s Employee Code of Conduct, Human Rights Policy, Health and Safety Policy and DEI Policy as well as the Supplier Code of Conduct.

The policy also describes our due diligence process for screening suppliers and vendors in ‘high-risk’ countries. We have developed a set of criteria for supplier screening, especially for suppliers hailing from high-risk countries or when certain categories of goods are involved. These criteria undergo a review every six months, encompassing sanctions legislation, the corruption track record of a country and its human rights standing, among other items.

Furthermore, the Global Statement on Modern Slavery and Human Rights describes the risk management process and mitigation strategies, including the human rights and modern slavery training included in the Employee Code of Conduct training.

Third-Party Due Diligence Policy

The Third-Party Due Diligence Compliance Policy and Procedure is supported by an external platform used to screen suppliers to confirm that third parties have not been found to commit acts of modern slavery or other human trafficking violations. The platform also screens vendors for information relating to sanctions, adverse media and items of enforcement. It is part of our Supplier Code of Conduct on falck.com.

Supplier Code of Conduct

At Falck, we consider our suppliers to be essential partners for our mission to deliver high-quality, sustainable healthcare solutions. Our Supplier Code of Conduct has been updated in 2024 and outlines fundamental standards and expectations for business ethics, legal compliance, human and labour rights, health and safety, and environmental sustainability. This Code is mandatory for all suppliers, agents and their direct and indirect subsuppliers, requiring them to uphold our values and contribute to a responsible and sustainable supply chain.

The Code emphasises the importance of ethical behaviour, adherence to laws and the protection and promotion of human rights. It also mandates that suppliers take proactive steps to minimise their environmental impact. To maintain transparency and accountability, Falck reserves the

right to conduct audits to verify compliance and may terminate contracts with suppliers who fail to meet our standards. Additionally, our whistleblower system, Falck Alert, allows for the confidential reporting of concerns without fear of retaliation, reinforcing our commitment to integrity and ethical conduct.

Remediation processes

S1-3 Remediation processes for negative impacts to own workforce

S4-3 Processes to remediate negative impacts and channels for consumers and end-users to raise concern

G1-1 Business conduct policies and corporate culture

Employees, consumers, end-users, third-parties, and all other stakeholders have access to Falck’s whistleblower system, Falck Alert. Please refer to the section on Whistleblower protection including set-up and governance on page 88 for more information about Falck Alert.

The global policies on diversity, equality and inclusion (DEI), human rights, health and safety, and other key areas form the foundation for fostering a diverse, safe and healthy workplace. Compliance with these policies is monitored locally and supported by feedback and grievance mechanisms for our employees.

We have established multiple channels in addition to Falck Alert to ensure that employees can raise concerns safely and confidentially. The following channels are directly available to the workforce:

•Workers’ council

•Annual employee engagement survey

•Incident reporting system, including safety observations

•Health and safety meetings via workers’ council and workers’ safety representation

•Mandatory Employee Code of Conduct training where employees are informed about available grievance options and systems

When negative impacts are identified through any of our feedback channels, we have processes in place to promptly address and remediate these issues.

Remediation

Falck has not identified, caused or contributed to any material adverse impacts with respect to human rights, labour rights, environment or anticorruption. However, please refer to the section Whistleblower protection including set-up and governance on page 88 for more information about actions taken based on reported cases in our whistleblower set-up, where individual remedy may have been provided.

Corporate culture

Impacts, risks and opportunities

G1-1 Business conduct policies and corporate culture

Conducting our business in a responsible manner is crucial for Falck. Business misconduct poses a significant potential negative impact if it were to occur, both for the environment and society. Furthermore, compliance breaches become more likely if we do not prioritise conducting our business with integrity and transparency. We see this potential negative impact in our own operations in the medium and long term.

Targets and metrics

The Employee Code of Conduct provides our employees with a common understanding of the way we conduct business and promotes high ethical standards for everyone at Falck, and we are committed to ensuring that all full-time employees are trained accordingly every two years, either online or in person in order to foster a culture of integrity and trust.

Code of Conduct training target

Full-time employees trained every two year

Baseline year 2021: 55%

What we did in 2024

Key actions

•We provided Employee Code of Conduct training for full-time and part-time employees, measuring the completion rate for full-time employees.

•We initiated the process of strengthening our sustainability efforts within procurement, including making it a focus area when carrying out sourcing processes and following up on supplier performance based on ESG parameters.

•We introduced a contract repository designed to strengthen the existing supplier management process by offering a more comprehensive and cohesive perspective on suppliers.

•We updated the Supplier Code of Conduct by tightening requirements on conflict of interest disclosure, environmental issues (hazardous waste management), human and labour rights, and clarified our right to terminate contracts for serious noncompliance.

•We developed a compliance chatbot allowing our colleagues to easily obtain information about the content and understanding of our compliance.

In 2025, we will

•Prepare a targeted awareness campaign

•Implement updated Employee Code of Conduct training during onboarding

•Further implement ESG criteria into procurement processes

Mandatory Employee Code of Conduct training

The training covers all topics comprised by our Employee Code of Conduct, including:

•Respecting people (human rights, labour rights, etc.)

•Health and safety

•Anti-bribery and anti-corruption

•Conflicts of interest

•Gifts and hospitality

•Communication

•Safeguarding information

•Speak up

•Our responsibility to the environment

Increased completion rate

In 2024, we saw increased levels of participation, compared to 2022. During 2024, several steps were taken to improve this year’s Code of Conduct

training efforts and results. As a result, we have seen a significant improvement in the completion rate by full-time employees to 91% (81%).

Accounting policy and definitions

Employee Code of Conduct training

As part of the Employee Code of Conduct training, we assess the completion rate at the end of each training period. This is measured as the percentage of Falck's full-time employees – those with at least one full-time employment contract with Falck – who have completed the training. This assessment is conducted every two years. New employees are required to complete the Employee Code of Conduct training as part of their onboarding.

Employees who are on long-term leave during the training period are excluded. In 2024, unforeseen circumstances prevented the majority of the 1,000 full-time employees in Uruguay from completing the training during the reporting period. While these employees will be encouraged to complete training as soon as possible, they are not included in the completion percentage for 2024. If included, the percentage completion rate would be 87% instead of 91%.

Supplier audits at stable levels

The Supplier Code of Conduct is part of the audit criteria applied for audits of critical suppliers. In cases where due diligence screenings reveal a particularly severe risk, Falck seeks to consider and carry out additional reviews and/or audits. In 2024, Falck conducted four audits of global, critical suppliers, the same number of cases as in 2023. In 2025, we expect to increase the number of supplier audits to seven and to set further requirements to ensure we have auditing rights in respect of all our suppliers. Furthermore, we expect to increase the number of supplier audits by also auditing IT and IT security suppliers.

Whistleblower

protection including set-up and governance

Impacts, risks and opportunities

G1-1 Business conduct policies and corporate culture

Protecting whistleblowers and having strong reporting mechanisms in place for reporting on misconduct is a top priority for Falck. Insufficient protection of people reporting misconduct poses a significant potential negative impact on our own workforce, our value chain and society in general, as it would cause the number of incidents reported and people willing to report incidents to drop, leading to undetected incidents. We see this potential negative impact in our own operations in the medium and long term.

Whistleblower set-up

We actively promote a global speak-up culture. Our whistleblower system, Falck Alert, is available 24/7 to all employees, business partners and third parties. We continuously encourage employees to report concerns about irregularities or improper actions that fail to comply with applicable laws and regulations, the Employee and Supplier Codes of Conduct or in-house policies.

Whistleblower governance

We worked continuously on optimising and strengthening our governance in 2024. We have established an Alert Advisory Board serving as a sparring or consultancy body to support the Falck Alert team in cases of high materiality. Meetings are held on a regular basis with the Community Forum Board, which consists of different internal stakeholders.

What we did in 2024

Key actions

•We conducted awareness campaigns and regular presentations across Falck’s business units to inform employees of the Falck Alert whistleblower process as well as the types of cases that can be expected to fall within the scope of investigation.

•We worked with selected parts of the business on improving the work culture and thereby mitigating risks.

•We continuously strengthened governance and awareness by posting quarterly Falck Alert stories on our Intranet based on trends.

•We focused on providing targeted feedback to the organisation to strengthen the culture.

In 2025, we will

•Execute whistleblower awareness activities and campaigns to maintain speak-up culture.

Targets and metrics

To emphasise its priority and importance, we have set a ratio target for our whistleblower reporting system to be above 1 report per 100 employees. This level of cases would be a strong indication of employees trusting the system and knowing they can use it without fear of retaliation.

Progress

The reporting ratio for 2024 was 2.16, indicating that it is an established, accessible and trusted whistleblower system.

In 2024, we received 408 reports (322 in 2023), of which 67% were anonymous (59% in 2023). This is in line with a weighted average for organisations within the NAVEX Global database1. Individuals filing a report are guaranteed protection from retaliation, and all cases are treated confidentially.

The cases reported via Falck Alert fall within the following top-five categories:

1.Misconduct or inappropriate behaviour (28%): Reports related to various inappropriate behaviour making people uncomfortable or creating a hostile working environment

2.Discrimination and harassment (21%): Reports related to sexual harassment, discriminatory treatment and bullying

3.Compliance with laws and standards (10%): Reports related to non-compliance, for example with our standards for uniforms or similar

4.Leadership (9%): Reports related to various managerial issues, e.g. leadership style, communication and fair distribution of work

5.Working conditions (8%): Most reports related to staff shortages.

Out of 408 cases reported, 23 led to termination of employment, 12 led to written warnings and 20 to additional instructions or guidance.

Accounting policies and definitions, Whistleblower reporting ratio

The whistleblower reporting ratio is calculated by dividing the number of cases reported during the year by the average FTEs for the same year and multiplied by 100. FTEs are calculated based on the number of hours worked by all Falck employees who have at least one employment contract with Falck (permanent or temporary contract). The definition of an FTE varies from country to country, typically ranging from 150 to 200 hours per month. An average FTE is 170 hours per month. The total hours worked by all employees are divided by this FTE equivalent to determine the number of full-time equivalent employees.

Anti-corruption and bribery

Impacts, risks and opportunities

G1-3 Prevention and detection of corruption and bribery

We see a significant risk of reputational damage should corruption and bribery incidents occur among suppliers and our operations in the medium and long term. From a gross risk perspective, the likelihood exists due to the geographical scope of Falck’s operations.

Preventing corruption and bribery

G1-3 Prevention and detection of corruption and bribery

G1-4 Confirmed incidents of corruption or bribery

Falck has a zero-tolerance approach to any form of direct or indirect, passive or active bribery or corruption, and we use the Falck Alert whistleblower system in conjunction with employee training to monitor and assess this area.

There were no anti-bribery or anti-corruptionrelated fines or convictions or any legal cases related to these matters against Falck or its employees in 2024. To maintain high ethical conduct in these areas, the Code of Conduct training that took place this year included a special module regarding anti-bribery.

What we did in 2024

Key actions

•We trained our employees in the Code of Conduct, which explains Falck policies related to bribery and corruption, as well as rules on gifts and hospitality and conflicts of interest.

•We executed an anti-corruption awareness campaign.

•We constructed and rolled out a compliance chatbot to provide employees with easy access to and help to understand the rules in Falck in these areas.

In 2025, we will

•Execute an awareness campaign related to gifts and hospitality.

•Conduct an anti-corruption awareness campaign.

ESG key figures

1) For the purpose of the ESG-related bank agreement, the baseline year for the scope 1 target is 2021

2) The baseline year is 2021 for this target

3) The Code of Conduct training is executed every two years, and therefore no data for 2023

4) In 2024, the employee engagement target was revised from 75 to 76 in 2025

5) LTIR figures have been restated, including the baseline, however the 2027 target remains the same. See the accounting policy for further details

6) Progress on CO2 emissions, total - scope 2 and 3 will be reported in the Annual Report for 2025