CREDIT REPORT


© Coface Slovenia d.o.o.
email: office@coface.si
17.03.2008 16:20 (+1)


COMPANY REPORTED


LEK FARMACEVTSKA DRUŽBA D.D. FIRMA V ANGLEŠKEM JEZIKU: LEK PHARMACEUTICALS D.D. FIRMA V FRANC.J: SOCIETE PHARMACEUTIQUE LEK D.D.


The company LEK D.D. LJUBLJANA (previous name: NOVARTIS PHARMA STORITVE FARMACEVTSKA DRUŽBA D.D. - national ID: 1732811) is 100% legal successor of the company LEK D.D. LJUBLJANA (national ID: 5043425).

Principal Address:
VEROVŠKOVA ULICA 57
1526 LJUBLJANA
Slovenia
Tel: +386-1-580 21 11
Fax: +386-1-580 35 17
Email: info@lek.si
Internet: http://www.lek.si

ICON number: 59933880
National ID: 1732811
Tax number: 87916452
VAT number: SI87916452


Date of Last Research: 28.02.2008


CREDIT INFORMATION SUMMARY


Insolvency Information: According to available information sources the company is not in a insolvency/preliminary/debt regulation proceeding.

Maximum Credit: EUR 2.500.000,00

Coface Central Europe Group defined a Maximum Credit of EUR 2.500.000 as the general upper limit for a suppliers’ credit. The Maximum Credit computed for the company in question would exceed this upper limit.

Credit Rating: @rating score: 9 - Excellent/almost no risk
The Credit Rating is expressed as an @rating score with values from 0 (insolvency) to 10 (no risk). The @rating score denominates the probability of default for the company within 12 months from the date the @rating score was set.

Payment Practices: Payments are made very correctly.

Further Rating Information: Researched company is categorized as a big company.
Turnover volume of EUR 744.400.809 in the year 2006 increased by 11,91% compared with 2005. In the previous period this change was +4,25%.
Fixed assets decreased by EUR 62.562.219 and now 69,64% of total assets.
Working capital of EUR 212.540.978 increased for 5,87% compared with the last period.
Cash flow from results of EUR 169.833.150 decreased by 3,28% compared with last year result.

Debt Collection: There is no record of any debt collection action by Coface Slovenia d.o.o. against this company exceeding a single case volume of EUR 500.


COMPANY DETAILS


Established: 14.08.2002

Registration: No. 13654200
14.08.2002
LJUBLJANA, Slovenia

Legal Form: joint stock company

History: Established as NOVARTIS PHARMA STORITVE FARMACEVTSKA DRUŽBA D.D. with registered activity 5146 Wholesale of pharmaceutical goods.

Its founder NOVARTIS PHARMA AG became major shareholder of LEK FARMACEVTSKA DRUŽBA D.D. (National ID 5043425) in year 2002.

On 01.10.2004 NOVARTIS PHARMA STORITVE FARMACEVTSKA DRUŽBA D.D. became 100% legal successor of LEK FARMACEVTSKA DRUŽBA D.D. (National ID 5043425). It took over the whole activity and all the employees of LEK FARMACEVTSKA DRUŽBA D.D. (National ID 5043425), whose turnover in the year 2003 was 150.627.045.000,00 SIT and net profit was 26.850.344.000,00 SIT.

On 01.10.2004 NOVARTIS PHARMA STORITVE FARMACEVTSKA DRUŽBA D.D. changed its name into LEK FARMACEVTSKA DRUŽBA D.D. as well.

Capital: EUR 48.402.003,00

Shareholders:
Full Name Function Address Equity capital
NOVARTIS PHARMA AG
Registration: Switzerland
Shareholder Lichtstrasse 35
4056 Basel
Switzerland
100,00%

Management:
Full Name Function Address
URLEP VOJMIR
Nationality: SI
01.08.2007 - Present
Chairman of the executive board Slovenia
BREČEVIČ DARIJA
Nationality: SI
Member of the executive board Slovenia
BUTENKO ČERNE KSENIJA
Nationality: SI
Member of the executive board Slovenia
DELFOSSE MARKUS PETER
Nationality: CH
Member of the executive board Switzerland
NOVAK MARJAN
Nationality: SI
Member of the executive board Slovenia
WEBER ANETTE ERIKA
Nationality: DE
Member of the executive board Germany


Representative offices: Albania, Bosnia and Herzegovina, Georgia, Serbia, Kazahstan, Poland, Russia, Belorussia, Ukraine and Uzbekistan.

Former Management:
Full Name Function Address
BRATOŠ JANJA
Nationality: SI
Former Manager Slovenia

Related Companies: Daughter company
HOTEL LEK, DEJAVNOST HOTELOV, D.O.O., KRANJSKA GORA
4280 KRANJSKA GORA, VRŠIŠKA CESTA 38
Equity capital: 100,00%

Daughter company
Lek Ljubljana Holding GmbH
Equity capital: 100,00%

Daughter company
LEK SKOPJE
Equity capital: 100,00%

Daughter company
LEK ZAGREB prodaja farmaceutskih i kemijskih proizvoda, d.o.o.
10000 Zagreb, Maksimirska 120
Equity capital: 100,00%

Daughter company
LEK ZAO MOSKVA
Equity capital: 100,00%

Daughter company
NOVARTIS VETERINA D.O.O. FIRMA V ANGLEŠKEM JEZIKU: NOVARTIS ANIMAL HEALTH D.O.O.
1000 LJUBLJANA, VEROVŠKOVA ULICA 57
Equity capital: 100,00%

Daughter company
SANDOZ FARMACEVTSKA DRUŽBA D.D. V ANGL.J.: SANDOZ PHARMACEUTICALS D.D.
1000 LJUBLJANA, VEROVŠKOVA 57
Equity capital: 100,00%

Daughter company
ČISTILNA NAPRAVA LENDAVA D.O.O.
9220 LENDAVA ČENTIBA, LENDAVSKA CESTA 30
Equity capital: 74,50%

Daughter company
SANDOZ SERVICES INC (US)
Equity: 100%

Daughter company
LEK PHARMACEUTICAL INC (US)
Equity: 100%

Linked companies: SANDOZ group, which is a generic part of NOVARTIS group.


KEY DATA ON OPERATIONS


Subject of Operation: NACE
  2442 Manufacture of pharmaceutical preparations

- production of generic medicine
- distribution
- import and export

Company Development: 200: Positive business development

Key Data:

Amounts shown in Euro (EUR)
  2006 2005 2004 2003
TURNOVER 744.400.809 665.163.332 638.024.051 36.260.650
FIXED ASSETS 633.853.605 696.415.824 710.295.012 971.031.867
EQUITY CAPITAL 798.937.327 840.194.427 755.240.662 796.388.597
FINANCIAL AND OPERATING LIABILITIES 62.726.457 81.743.754 138.425.906 198.527.861
NET PROFIT FOR THE PERIOD 114.912.682 81.358.429 99.421.154 31.148.412
NET LOSS FOR THE PERIOD 0 0 0 0
Operating result - profit 135.821.753 52.236.532 114.342.485 0
Operating result - loss 0 0 0 14.292

  2006 2005 2004 2003
Return on Assets (ROA), %
Net result *100 / Total Assets
12,63 8,36 10,40 3,13
Return on Equity (ROE), %
Net result *100 / Total Equity
14,38 9,68 13,16 3,91



Workforce:
  2007 2006 2005 2004
Total workforce 3.076 2.818 2.843 3.037

Motor Vehicles: No data available.

Imports:
Asia
European Union
South America
United States of America

Exports:
Asia
Australia
European Union
United States of America

Major Customers: PROTEK (RU), SIA (RU), KEMOFARMACIJA D.D. LJUBLJANA (SI), SALUS LJUBLJANA D.D. LJUBLJANA (SI)

Major Suppliers: No data available.

Real Estate: built upon
Address:
VEROVŠKOVA ULICA 57
1526 LJUBLJANA
Slovenia

Type of ownership: owned

built upon
Address:
KOLODVORSKA CESTA 27
1234 MENGEŠ
Slovenia

Type of ownership: owned

built upon
Address:
TRIMLINI 2 D
9220 LENDAVA - LENDVA
Slovenia

Type of ownership: owned

built upon
Address:
PERZONALI 47
2391 PREVALJE
Slovenia

Type of ownership: owned

Hotel
Address:
HOTEL LEK, VRŠIŠKA ULICA 38
4280 KRANJSKA GORA
Slovenia

Type of ownership: owned


FINANCIAL INFORMATION


Financials:

Amounts shown in Euro (EUR)   2006 2005 2004 2003




PROFIT AND LOSS
  TURNOVER 744.400.809,00 665.163.332,00 638.024.051,00 36.260.650,00
  OPERATING INCOME 732.768.503,00 607.996.237,00 604.494.414,00 0,00
  Net sales revenus from domestic market 62.410.290,00 59.582.339,00 72.079.675,00 0,00
  Net sales revenus from EU market 658.159.477,00      
  Net sales revenues from foreign market N/A 483.961.089,00 462.344.711,00 0,00
  TOTAL EXPENSES 610.236.513,00 567.875.125,00 513.336.881,00 5.112.238,00
  OPERATING EXPENSES 596.946.749,00 555.759.705,00 490.151.929,00 14.292,00
  Labour costs 125.694.913,00 120.975.922,00 115.109.047,00 0,00
  Depreciation 53.331.197,00 91.701.802,00 80.890.089,00 0,00
  OPERATING RESULT - PROFIT 135.821.753,00 52.236.532,00 114.342.485,00 0,00
  OPERATING RESULT - LOSS 0,00 0,00 0,00 14.292,00
  INCOME TAX 18.508.037,00 15.929.779,00 25.266.016,00 0,00
  NET PROFIT FOR THE PERIOD 114.912.682,00 81.358.429,00 99.421.154,00 31.148.412,00
  NET LOSS FOR THE PERIOD 0,00 0,00 0,00 0,00




BALANCE SHEET
ASSETS
  FIXED ASSETS 633.853.605,00 696.415.824,00 710.295.012,00 971.031.867,00
  Intangible fixed assets 342.712.961,00 343.000.510,00 386.280.701,00 0,00
  Tangible fixed assets 204.183.358,00 229.027.055,00 230.202.433,00 0,00
  Long-term investments 85.462.143,00 124.388.260,00 93.811.878,00 971.031.867,00
  CURRENT ASSETS 274.977.842,00 275.926.359,00 244.389.726,00 23.884.591,00
  Inventories 115.064.476,00 107.297.646,00 82.466.032,00 0,00
  Operating Receivables 157.693.365,00 144.410.353,00 152.617.829,00 22.730.125,00
  Long-term operating receivables 62.152,00 2.304.613,00 35.747,00 0,00
  Short-term operating receivables 157.631.213,00 142.105.740,00 152.582.082,00 22.730.125,00
  TOTAL ASSETS 910.142.881,00 972.678.562,00 955.615.396,00 994.916.458,00




LIABILITIES
  EQUITY CAPITAL 798.937.327,00 840.194.427,00 755.240.662,00 796.388.597,00
  Share capital 48.402.003,00 48.415.014,00 48.381.208,00 490.054,00
  Reserves 0,00 0,00 0,00 0,00
  PROVISIONS 31.471.307,00 41.077.768,00 52.121.176,00 0,00
  Long-term financial and operating liabilities 289.593,00 6.574.217,00 79.453.031,00 197.499.999,00
  Short-term financial and operating liabilities 62.436.864,00 75.169.537,00 58.972.875,00 1.027.862,00
  ACCRUED COSTS AND DEFERRED REVENUES 17.003.927,00 9.662.612,00 9.827.653,00 0,00
  TOTAL LIABILITIES 910.142.881,00 972.678.562,00 955.615.396,00 994.916.458,00


Investments: 2007: production and premises
2006: production, premises in Mengeš
2005: production equipment
2004: 21.100.000.000,00 SIT

Bankers: ABANKA VIPA D.D. - Account no. 05100-8000005424
1000 LJUBLJANA, SLOVENSKA CESTA 58

NOVA KREDITNA BANKA MARIBOR D.D. - Account no. 04302-0000871044 (Account closed on 26.06.2003)

NOVA LJUBLJANSKA BANKA D.D., LJUBLJANA - Account no. 02923-0012224080
1000 LJUBLJANA, TRG REPUBLIKE 2

NOVA LJUBLJANSKA BANKA D.D., LJUBLJANA - Account no. 02923-0253835269 (Account closed on 30.09.2004)

SKB BANKA D.D. LJUBLJANA - Account no. 03100-1005938988 (Account closed on 08.12.2006)

UNICREDIT BANKA SLOVENIJA D.D. - Account no. 29000-0001867107
1000 LJUBLJANA, ŠMARTINSKA CESTA 140


Ratios:

  2006 2005 2004 2003
Quick ratio
(Current assets-Inventory)/Current liabilities
2,56 2,24 2,75 23,24
Current ratio ( CR )
Current assets / Current liabilities
4,40 3,67 4,14 23,24
Return on Sales (ROS), %
Net result *100 / Sales
15,95 14,97 18,60 -
Return on Assets (ROA), %
Net result *100 / Total Assets
12,63 8,36 10,40 3,13
Return on Equity (ROE), %
Net result *100 / Total Equity
14,38 9,68 13,16 3,91
Cash ratio
Cash / Current liabilities
4,40 3,67 4,14 23,24
Inventory rotation (in days)
(Inventory / Sales) * 365
58,29 72,05 56,32 -
Collection Period (in days)
Accounts Receivable *365 / Sales
79,88 96,97 104,23 -
Days purchase in payables
Current Liabilities / Turnover * 360 days
30,61 41,25 33,74 10,35
Sales to Total Assets
Sales / Total assets
0,79 0,56 0,56 0
Debt Ratio
Liabilities / Total Assets
0,07 0,08 0,14 0,20
Leverage
Long Term Liabilities / Total Equity
0,00 0,01 0,11 0,25






ADDITIONAL INFORMATION


Contact With Company: 28.02.2008: Mr Gregor Pečnik

Additional information: Priority research company: 1
Number of founders: 1

Management: On 01.10.2004 were all activities transferred from the company LEK D.D. LJUBLJANA (national ID: 5043425) on this company.

Certificates: ISO 9001:2000
ISO 14001:1996
GMP

Short Company name: LEK D.D.


CODES AND DEFINITIONS


Maximum Credit is to be understood as the highest possible engagement for a supplier delivering goods or rendering services on open terms with an average respite of 60 days. (It is assumed that, on the average, the company in question has 5 suppliers, who deliver goods or render services at the same time.)

Credit Rating
10 No risk
9 Excellent/almost no risk
8 Very low risk
7 Low risk
6 Less than medium risk
5 Medium risk
4 Above medium risk
3 High risk
2 Very high risk
1 Risk of insolvency
0 Insolvency/preliminary/debt regulation proceedings
Payment Practices
Payments are made very correctly. - Payments are made regularly. - Payments are made according to terms - Payments are made irregularly. - Payments are made slowly. - Payments are made very slowly. - Payments are extremely slow, constantly legal actions occur. - Payments stopped.

The information and/or data provided are subject to the general terms and conditions or individual contract terms and may be used only for the purpose they have been requested for.

In case of any additional questions please contact our office:

Coface Slovenia Credit Management Services d.o.o.
Cankarjeva cesta 3
1000 Ljubljana
Slovenija

Tel.: +386 1 425 90 65
Fax : +386 1 425 91 30
e-mail: office@coface.si
www.coface.si

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