H. Lundbeck A — Audit Report / Information 2019

Jan 5, 2021

DocuSign Envelope ID: E5059EA7-87CF-4385-8E2F-DC2F7965D008

Adjusted Supplementary Information to the Annual Report

2019

H. Lundbeck A/S Ottilliavej 9 2500 Valby Denmark

Corporate Communication Tel. +45 36 30 13 11 information@lundbeck.com www.lundbeck.com CVR number 56759913

CONTENTS

kg d fo he d j d lem Ba A Su t te ta c ro un us p p en r ry
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M t s ta te t an ag em en m en	7

de d c l i da d f in ia l s Co te ta te ts n ns e on so an c m en	8
de d f in ia l s f he Co ta te ts t t n ns e an c m en o p ar en co m p an y	6 2
de de d i 's he d j d In A t a to t o t te p en n u r re p or n us lem fo io he l Su In An ta t to t p p en ry rm a n nu a Re t 2 01 9 p or	3 4

y Group's and the Parent Company's

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SUMMARY FOR THE GROUP 2018 - 2019 - CONTINUED

		2019			2018
Key figures	As reported	Adjustment	Restated	As reported	Adjustment	Restated
EBIT margin (%)	21,2	(2,7)	18,5	29,3	(2,6)	26,7
Research and development ratio (%)	18.3		18,3	18.1		18.1
Return on equity (%)	18,5	(4,7)	13,8	29,6	(7.4)	22,2
Equity ratio (%)	40,7	3,3	44,0	61,9	3,9	65,8
Invested capital (DKKm)	21.120	2.228	23.348	7.616	2.582	10.198
Net debt/EBITDA	1.4		1,4	(1,0)		(1,0)
Effective tax rate (%)	23,4	0,2	23,6	26,1	0,4	26,5
Purchase of intangible assets, gross (DKKm)	88		88	1.149		1.149
Purchase of property, plant and equipment, gross (DKKm)	356		356	300		300
Purchase of financial assets, gross (DKKm)	18		18	1.524		1.524
Average number of employees	5.475		5.475	5.060		5.060

		2019			2018
Share data1	As reported	Adjustment	Restated	As reported	Adjustment	Restated
Number of shares for the calculation of EPS (millions)	198,7		198,7	198,7		198,7
Earnings per share, basic (EPS) (DKK)	13,42	(1,78)	11,64	19,66	(1,78)	17,88
Earnings per share, diluted (DEPS) (DKK)2	13,42	(1,78)	11,64	19,66	(1,78)	17,88
Proposed dividend per share (DKK)	4,10		4,10	12,00		12,00
Cash flow from operating activities per share, diluted (DKK)2	13,13		13,13	30,10		30,10
Net asset value per share, diluted (DKK)2	73,24	11,22	84.46	71,69	12.99	84,68
Market capitalization (DKKm)	50.660		50.660	56.825		56.825
Price/Eamings, diluted (DKK)2	18,95	2,90	21,85	14,52	1,44	15,96
Price/Cash flow, diluted (DKK)2	19,38		19,38	9,48		9,48
Price/Net asset value, diluted (DKK) -	3,47	(0.46)	3,01	3,98	(0,61)	3,37

SUMMARY FOR THE GROUP 2018 - 2019 - CONTINUED

	2019			2018
EBITDA calculation (DKKm)	As reported	Adjustment	Restated	As reported	Adjustment	Restated
EBIT	3,608	(455)	3,153	5,301	(455)	4,846
+ Depreciation, amortization and impairment losses	1,215	455	1,670	1,183	455	1,638
- Gain on divestment of properties recognized in other operating items, net	-	-	-	(48)	-	(48)
EBITDA	4,823	=	4,823	6,436	1	6.436

2017 has not been adjusted with the effect of the reversal of the impairment loss on Rexulti.

For footnotes and definitions of Summary for the Group 2018 - 2019, see the Annual Report 2019.

三 CONTENTS

MANAGEMENT STATEMENT

ANNUAL REPORT 2019

The Danish Business Authority conducted a review of the Annual Report 2018 for H. Lundbeck A/S. H. Lundbeck A/S has received the conclusion of the review from the Danish Business Authority on 27 November 2020.

The conclusion is that the impairment loss on the product rights for Rexulti recognized at 31 December 2015 should have been reversed in 2017. The impact is an increase in intangible assets of DKK 3,766 million, net of amortization at 31 December 2017.

Based on the conclusion, Management has chosen to publish Adjusted Supplementary Information to the Annual Report 2019.

The Board of Directors and the registered Executive Management have today considered and approved the Adjusted Supplementary Information to the Annual Report 2019.

In our opinion, the Adjusted Supplementary Information to the Annual Report 2019 is prepared in accordance with the requirements in the conclusion made by the Danish Business Authority on 27 November 2020.

Valby, 5 January 2021

REGISTERED EXECUTIVE MANAGEMENT

-DocuSigned by: Deborati Dursin Depo 59E80164A7F54AD ... President and CEO

-DocuSigned by: Lars Bang Lars 9E1ARBB6900C453 ...

Executive Vice President. Product Development & Supply

Mars GA Anders Craces Che 1. Executive Vice President. CFO

DocuSigned by:

-DocuSigned by: Johan (utliman Per Johan Luthman Executive Vice President,

Research & Development

DocuSigned by:

Jacols 9489999395E4CE ... Executive Vice President, Commercial Operations

BOARD OF DIRECTORS

DocuSign Envelope ID: E5059EA7-87CF-4385-8E2F-DC2F7965D008

ADJUSTED SUPPLEMENTARY INFORMATION TO THE ANNUAL REPORT 2019 를 CONTENTS

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

CONTENTS

Condensed consolidated income statement	ರ
Condensed consolidated statement of
comprehensive income	10
Condensed consolidated balance sheet	11
Condensed consolidated statement of
changes in equity	13
Condensed consolidated cash flow statement	14

PRIMARY NOTES

5. Intangible assets	15
6. Impairment	17

SECONDARY NOTES

14. Tax on profit for the year	19
15. Deferred tax	22
20. Amortization, depreciation and impairment losses	25

OTHER NOTES

1. Earnings per share

25

INCOME

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INFORMATION TO THE 를 CONTENTS ANNUAL REPORT 2019

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

			31 December 2019		31 December 2018
		As reported	Adjustment	Restated	As reported	Adjustment	Restated
	Notes		DKKm	DKKm	DKKm	DKKm	DKKm	DKKm
Profit from operations (EBIT)		3,608	(455)	3,153	5,301	(455)	4,846
Adjustment for non-cash items		1,075	455	1,530	1,243	455	1,698
Change in working capital		(1,394)		(1,394)	563		563
Cash flows from operations before financial receipts and payments		3,289	=	3,289	7,107		7,107
Financial receipts		5		5	62		62
Financial payments		(15)		(15)	(56)		(56)
Cash flows from ordinary activities		3,279	=	3,279	7,113		7,113
Income taxes paid		(670)		(670)	(1,132)		(1,132)
Cash flows from operating activities		2,609		2,609	5,981		5,981
Cash flows from investing activities1		(7,755)		(7,755)	(2,907)		(2,907)
Cash flows from operating and investing activities (free cash flow)		(5,146)		(5,146)	3,074		3,074
Cash flows from financing activities		4,548		4,548	(1,607)		(1,607)
Net cash flow for the year		(598)		(598)	1,467		1,467
Cash and bank balances at 1 January		3,605		3,605	2,155		2,155
Unrealized exchange gains/losses on cash and bank balances					(17)		(17)
Net cash flow for the year		(598)		(598)	1,467		1,467
Cash and bank balances at 31 December		3,008		3,008	3,605		3,605
Interest-bearing debt, cash, bank balances and securities, net, is composed as follows:
Cash and bank balances		3,008		3,008	3,605		3,605
Securities				4	3,030		3,030
Interest bearing debt		(9,578)		(9,578)
Interest-bearing debt, cash, bank balances and securities, net, at 31 December - net cash/(net debt)		(6,566)		(6,566)	6,635		6,635

(1) h 2014, Ludbert app.ill The aquisition was onsisted on the tigitary productions websited of the tiging world differ the milin and relieve for DKK online and curses The cash for statener is complet using the individual anounts in the cash for statement cannot be resorciled directly of the contensed noone states and balance sheet.

NOTE 5

5. INTANGIBLE ASSETS

		Product rights1 Goodwill			Other	Projects in	Total intangible assets
		As reported	Adjustment	Restated	rights2	progress2	As reported	Adjustment	Restated
Intangible assets	DKKm	DKKm	DKKm	DKKm	DKKm	DKKm	DKKm	DKKm	DKKm
2019
Cost at 1 January 2019	4,300	16,239		16,239	1,759	136	22,434		22,434
Effect of foreign exchange differences	ടു	97		97	3		169		169
Additions through acquisitions	909	15,274		15,274			16,183		16,183
Transfers					ട് 8	(58)			-
Additions					15	73	88		88
Disposals					(9)	(17)	(26)		(26)
Cost at 31 December	5,278	31,610	=	31,610	1,826	134	38,848		38,848
Amortization and impairment losses at 1 January		12,743	(3,311)	9,432	1,648	20	14.411	(3,311)	11,100
Effect of foreign exchange differences		137		137	3		140		140
Amortization		854	455	1,309	68		922	455	1,377
Disposals					(7)	(17)	(24)		(24)
Amortization and impairment losses at 31 December		13,734	(2,856)	10,878	1,712	3	15,449	(2,856)	12,593
Carrying amount at 31 December	5,278	17,876	2,856	20,732	114	131	23,399	2,856	26,255

1) In 2019, product rights not yet commercialized amounted to DKK 1,066 million in 2018).

2) Other rights and projects in progress include items such as the IT system SAP. The amounts include internal expenses.

NOTE 5

5. INTANGIBLE ASSETS - CONTINUED

	Goodwill	Product rights1			Other rights2	Projects in progress2	Total intangible assets
		As reported	Adjustment	Restated			As reported	Adjustment	Restated
Intangible assets	DKKm	DKKm	DKKm	DKKm	DKKm	DKKm	DKKm	DKKm	DKKm
2018
Cost at 1 January 2018	4,124	15,089		15,089	1,731	115	21,059		21,059
Effect of foreign exchange differences	176	280		280	ব	1	461		461
Transfers					57	(57)
Additions		1,066		1,066	6	77	1,149		1,149
Disposals		(196)		(196)	(39)	-	(235)		(235)
Cost at 31 December	4,300	16,239	=	16,239	1,759	136	22,434	■	22,434
Amortization and impairment losses at 1 January		11,868	(3,766)	8,102	1,606	20	13,494	(3,766)	9,728
Effect of foreign exchange differences		220		220	ব		224		224
Amortization		813	455	1,268	68		881	455	1,336
Impairment losses		38		38	4		42		42
Disposals		(196)	-	(196)	(34)	-	(230)		(230)
Amortization and impairment losses at 31 December		12,743	(3,311)	9,432	1,648	20	14,411	(3,311)	11,100
Carrying amount at 31 December	4,300	3,496	3,311	6,807	111	116	8,023	3,311	11,334

SUPPLEMENTARY INFORMATION TO THE = CONTENTS ANNUAL REPORT 2019

NOTE 5 - 6

ADJUSTED

5. INTANGIBLE ASSETS - CONTINUED

In October 2019, Lundbeck acquired Alder BioPharmaceuticals, Inc. (the name has subsequently been changed to Lundbeck Seattle BioPharmaceuticals, Inc.). The acquisition is considered a business combination in accordance with IFRS 3 Business Combinations. As part of the acquisition, Lundbeck acquired the product rights to eptinezumab which is an investigational monoclonal antibody (mAb) for migraine prevention targeting the calcitonin gene-related peptide (CGRP). The value of the product rights was DKK 13,421 million at the time of acquisition. The carrying amount of DKK 13,340 million at 31 December 2019 was affected by developments in the USD/DKK exchange rate.

In May 2019, Lundbeck acquired Abide Therapeutics, Inc. (the name has subsequently been changed to Lundbeck La Jolla Research Center, Inc.). The acquisition is considered a business combination in accordance with IFRS 3 Business Combinations. As part of the acquisition, Lundbeck acquired a portfolio of compounds, including the product rights to ABX-1431; a first-in-class, small-molecule inhibitor of monoacy|g|ycerol lipase (MGLL) currently being investigated in clinical trials for the treatment of neurological disorders, and various compounds in the pre-clinical phase. The value of the portfolio of compounds recognized as product rights was DKK 1,853 million at the time of acquisition. The carrying amount of DKK 1,840 million at 31 December 2019 was affected by developments in the USD/DKK exchange rate.

In March 2018, Lundbeck purchased the foliglurax product rights by acquiring all shares in Prexton Therapeutics BV. The purchase was considered a purchase of assets, i.e. not a business combination. The value of the product rights was DKK 712 million at the time of purchase. The carrying amount of DKK 776 million at 31 December 2019 was affected by developments in the CHF/DKK exchange rate

Adjustment

In 2015, Lundbeck recognized an impairment loss of the Rexulti product rights in the approximate amount of DKK 5 billion impacting the research and development costs.

In 2020, based on the requirement from the Danish Business Authority, an impairment test was performed for 2017, leading to the conclusion that the impairment recognized in the Annual Report 2015 should be reversed in 2017, net of accumulated amortization.

See Note 6 Impairment for details on the assessment of reversal of the impairment

6. IMPAIRMENT

All subsidiaries are considered part of one single cash-generating unit (CGU) as that is the way in which Management makes decisions and assesses business performance. All subsidiaries are considered fully integrated into the Group as no entity has significant independent or separately identifiable inflow of cash. Most cash inflows are based on the output from research and development activities performed by headquarters on behalf of the entire Group. Accordingly, an impairment test was performed based on Lundbeck having one single CGU.

Methodology

In the impairment test, the discounted expected future cash flows (value in use) for the CGU and the specific asset tested are compared with the carrying amounts of goodwill and other assets. The expected future cash flows are based on a forecast period of nine years, which is the period used by Management for decision making, with due consideration of patent expiry. The assumptions used in the impairment test are based on benchmarked external data and historical trends. The key parameters in the value in use are revenue, earnings, working capital, discount rate and the preconditions for the terminal period.

Negative growth of 5% is projected in the terminal period due to patent expiry. In addition, the four category elements in the table below are taken into consideration when determining the key parameters.

Adjustment

Based on the requirement from the Danish Business Authority, an impairment test was performed on the product rights for Rexulti. The product rights were fully impaired in 2015. The conclusion states that there were indications of an impairment reversal in 2017, consequently the Danish Business Authority required an impairment test for 2017. The impairment test for 2017 led to a reversal of the full recognized impairment, net of accumulated amortization, on the product rights for Rexulti of DKK 3,766 million as of 31 December 2017.

ADJUSTED SUPPLEMENTARY INFORMATION TO THE ANNUAL REPORT 2019

NOTE 6

6. IMPAIRMENT - CONTINUED

Financial elements	Market elements
Prices	Healthcare reforms
Rebates	Price reforms
Quantities	Market access
Patient population	Pharma restrictions
Market shares	Launch success
Competition	Product positioning
Fill rates	Competing pharmaceuticals
Prescription rates	Generics on the market
Lundbeck costs

R&D elements	Other elements
R&D spend	Supply chain effectiveness
Collaborations	Reputation
Pipeline success rate	Strength and abilities of partners
Product labelling
Liaison with regulatory bodies

The calculation of the value in use for the Group is based on a discount rate after tax of 7.93% (7.97% in 2018).

2019 testing outcome

The impairment test performed in 2019 did not result in any recognition of impairment losses .

2018 testing outcome

The impairment test performed in 2018 did not result in any recognition of impairment losses .

lmpact of possible changes in key assumptions for the impairment test of the CGU

If the budgeted revenue had been 5% lower than Management's estimates, the safety margin would continue to be positive. If the discount rate after tax applied to cash flow had been 1% higher, the safety margin would continue to be positive.

Adjustment

2017 testing outcome

Based on the requirement from the Danish Business Authorithy, an impairment test was performed for 2017, leading to the conclusion that the impairment recognized in the 2015 Annual Report, should be reversed in 2017, net of accumulated amortization.

The calculation of the value in use is based on a discount rate after tax of 7.93%.

NOTE 14

14. TAX ON PROFIT FOR THE YEAR

	31 December 2019			31 December 2018
	As reported	Adjustment	Restated	As reported	Adjustment	Restated
	DKKm	DKKm	DKKm	DKKm	DKKm	DKKm
Current tax	402		402	1,233		1,233
Prior-year adjustments, current tax	385		385	(60)		(60)
Prior-year adjustments, deferred tax	(403)		(403)	86		86
Change in deferred tax for the year	404	(101)	303	(29)	(101)	(130)
Change in deferred tax as a result of changed income tax rates	(1		(1)	(3)		(3)
Total tax for the year	787	(101)	686	1,227	(101)	1,126
Tax for the year is composed of:
Tax on profit for the year	814	(101)	713	1,382	(101)	,281
Tax on other comprehensive income	(28)		(28)	(155)		(155)
Tax on other transactions in equity
Total tax for the year	787	(101)	686	1,227	(101)	1,126

For a specification of tax on other comprehensive income, see note 26 Other comprehensive income in the Annual Report 2019.

NOTES 14

14. TAX ON PROFIT FOR THE YEAR - CONTINUED

Explanation of the Group's effective tax rate relative	As reported		Adjustment		Restated
to the Danish corporate income tax rate	DKKm	%	DKKm	%	DKKm	%
2019
Profit before tax	3,481		(455)		3,026
Calculated tax, 22%	766	22	(101)	22	665	22
Tax effect of:
Differences in the income tax rates of foreign subsidiaries from the Danish corporate income tax rate	62	1.8			62	2.0
Non-deductible expenses/non-taxable income and other permanent differences	79	2.2			79	2.6
Research and development incentives	(13)	(0.4)			(13)	(0.4)
Foreign-derived intangible income benefit	(140)	(4.0)			(140)	(4.6)
Non-deductible amortization of product rights	103	3.0			103	3.4
Change in valuation of net tax assets	(24)	(0.7)			(24)	(0.8)
Change in deferred tax as a result of changed income tax rates	(1)				(1)	(0.0)
Prior-year tax adjustments etc., total effect on operations	(18)	(0.5)			(18)	(0.6)
Effective tax/tax rate for the year	814	23.4	(101)	22	713	23.6

NOTES 14

14. TAX ON PROFIT FOR THE YEAR - CONTINUED

Explanation of the Group's effective tax rate relative	As reported	Adjustment		Restated
to the Danish corporate income tax rate	DKKm	%	DKKm	0/0	DKKm	%
2018
Profit before tax	5,289		(455)		4,834
Calculated tax, 22%	1,163	22	(101)	22	1,062	22
Tax effect of: Differences in the income tax rates of foreign subsidiaries from the Danish corporate income tax rate	85	1.6			85	1.8
Non-deductible expenses/non-taxable income and other permanent differences	63	1.2		-	63	1.3
Research and development incentives	(26)	(0.5)	-	-	(26)	(0.5)
Non-deductible amortization of product rights	97	1.8		-	97	2.0
Change in valuation of net tax assets	(23)	(0.4)			(23)	(0.5)
Change in deferred tax as a result of changed income tax rates	(3)	(0.1)			(3)	(0.1)
Prior-year tax adjustments etc., total effect on operations	26	0.5			26	0.5
Effective tax/tax rate for the year	1,382	26.1	(101)	22	1,281	26.5

. DEFERRED TAX

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NOTE 15

15. DEFERRED TAX - CONTINUED

2019	Deferred tax assets				Deferred tax liabilities		Net
	As reported	Adjustment	Restated	As reported	Adjustment	Restated	As reported	Adjustment	Restated
Deferred (tax assets)/tax liabilities	DKKm	DKKm	DKKm	DKKm	DKKm	DKKm	DKKm	DKKm	DKKm
Intangible assets	(35)		(35)	3,162	628	3,790	3,127	628	3,755
Property, plant and equipment	(9)		(ອ)	183		183	174		174
Inventories	(70)		(70)	207		207	137		137
Provisions	(396)		(396)				(396)		(396)
Other items	(197)	-	197)	53		53	(144)		144
Tax loss carryforwards etc.	(1,695)		(1,695)				(1,695)		(1,695)
Research and development incentives	(4)		(এ				(4)		(4)
Deferred (tax assets)/tax liabilities	(2,406)		(2,406)	3,605	628	4,233	1,199	628	1,827
Set off within legal tax entities and jurisdictions	1.921	480	2,401	(1,921)	(480)	(2,401)
Total net deferred (tax assets)/tax liabilities	(485)	480	(5)	1,684	148	1,832	1,199	628	1,827

		Deferred tax assets			Deferred tax liabilities			Net
2018	As reported	Adjustment	Restated	As reported	Adjustment	Restated	As reported	Adjustment	Restated
Deferred (tax assets)/tax liabilities	DKKm	DKKm	DKKm	DKKm	DKKm	DKKm	DKKm	DKKm	DKKm
Intangible assets	(31)		(31)	343	729	1,072	312	729	1,041
Property, plant and equipment	(2)		(2)	66		66	64		64
Inventories	(77)		(77)	37		37	(40)		(40)
Provisions	(356)		(356)				(356)		(356)
Other items	(75)		(75)	450		450	375		375
Tax loss carryforwards etc.	(975)		(975)				(975)		(975)
Research and development incentives	(73)		(73)				(73)		(73)
Deferred (tax assets)/tax liabilities	(1,589)		(1,589)	896	729	1,625	(693)	729	36
Set off within legal tax entities and jurisdictions	424	729	1,153	(424)	(729)	(1,153)
Total net deferred (tax assets)/tax liabilities	(1,165)	729	(436)	472		472	(693)	729	36

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PRECIATION AND IMPAI

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of ( '00 es) Ave ber sha 0 s har rag e n um res
sha ( '00 0 s har es) res
Av ber of sh xcl . tr sh s ( '00 0 s har es) era ge num are s, e eas ury are
Ave ber of full dilu ted ( '00 0 w s) nts ant rag e n um wa rra y arr ,
Ea rni har bas ic ( EP S) ( DK K) ngs pe r s e,

DocuSign Envelope ID: E5059EA7-87CF-4385-8E2F-DC2F7965D008

ADJUSTED SUPPLEMENTARY INFORMATION TO THE
ANNUAL REPORT 2019 를 CONTENTS

CONDENSED FINANCIAL STATEMENTS OF THE PARENT COMPANY

NOTES

8. Tax on profit for the year	31
10. Intangible assets	32
13. Impairment	33
14. Deferred tax	33

CONTENTS

Condensed income statement
Condensed balance sheet	28
Condensed statement of changes in equity	30

CONDENSED INCOME STATEMENT

			31 December 2019		31 December 2018
		As reported	Adjustment	Restated	As reported	Adjustment	Restated
	Notes	DKKm	DKKm	DKKm	DKKm	DKKm	DKKm
Revenue		9,464		9,464	8,607		8,607
Cost of sales		1,720	455	2,175	1,675	455	2,130
Gross profit		7,744	(455)	7,289	6,932	(455)	6,477
Profit from operations (EBIT)		1,547	(455)	1,092	839	(455)	384
Income for investments in subsidiaries		3,217	-	3,217	306		306
Financial items, net		(103)		(103)	(168)		168)
Profit before tax		4,661	(455)	4,206	977	(455)	522
Tax on profit for the year	8	215	(101)	114	141	(101)	40
Profit for the year		4,446	(354)	4,092	836	(354)	482

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를 CONTENTS

CONDENSED STATEMENT OF CHANGES IN EQUITY

		Share	Proposed	Retained earnings	Equity
		capital	dividends	As reported	Adjustment	Restated	As reported	Adjustment	Restated
	Notes	DKKm	DKKm	DKKm	DKKm	DKKm	DKKm	DKKm	DKKm
2019
Equity at 1 January		996	2,389	6,073	2,582	8,655	9,458	2,582	12,040
Distributed dividends, gross			(2,389)				(2,389)		(2,389)
Dividends received, treasury shares				5		5	5		5
Profit for the year		-	816	3,630	(354)	3,276	4,446	(354)	4,092
Deferred exchange gains/losses, hedging				(354)		(354)	(354)		(354)
Exchange gains/losses, hedging (transferred to the hedged items)				322		322	322		322
Capital increase through exercise of warrants				4		ব	ব		4
Buyback of treasury shares				(20)		(20)	(20)		(20)
Incentive programs				27		27	27		27
Tax on transactions in equity				ട		6	ട		റ്റ
Equity at 31 December		996	816	9,693	2,228	11,921	11,505	2,228	13,733

For further details, see note 28 Share capital in the consolidated financial statements in the Annual Report 2019.

NOTE 8

8. TAX ON PROFIT FOR THE YEAR

	31 December 2019			31 December 2018
	As reported	Adjustment	Restated	As reported	Adjustment	Restated
	DKKm	DKKm	DKKm	DKKm	DKKm	DKKm
Current tax, joint taxation contribution	(81)	-	(81)	79	-	79
Prior-year adjustments, current tax	8		8	(114)	-	(114)
Prior-year adjustments, deferred tax	(19)		(19)	97		97
Change in deferred tax for the year	301	(101)	200	(44)	(101)	(145)
Total tax for the year	209	(101)	108	18	(101)	(83)
Tax for the year is composed of:
Tax on profit for the year	215	(101)	114	141	(101)	40
Tax on transactions in equity	(6)		(6)	(123)		123)
Total tax for the year	209	(101)	108	18	(101)	(83)

NOTE 10

10. INTANGIBLE ASSETS

	Product rights1			Other	Projects in	Total intangible assets
	As reported	Adjustment	Restated	rights2 progress2		As reported	Adjustment	Restated
Intangible assets	DKKm	DKKm	DKKm	DKKm	DKKm	DKKm	DKKm	DKKm
Cost at 1 January 2019	8,795		8,795	1,694	104	10,593		10,593
Transfers				40	(40)			-
Additions	4,019		4,019	10	46	4,075	-	4,075
Disposals				(8)	(17)	(25)		(25)
Cost at 31 December	12,814	I	12,814	1,736	ರಿ 3	14,643		14,643
Amortization and impairment losses at 1 January	7,152	(3,311)	3,841	1,620	20	8,792	(3,311)	5,481
Amortization	294	455	749	46		340	455	795
Disposals				(7)	(17)	(24)		(24)
Amortization and impairment losses at 31 December	7,446	(2,856)	4,590	1,659	3	9,108	(2,856)	6,252
Carrying amount at 31 December	5,368	2,856	8,224	77	90	5,535	2,856	8,391

1) In 2019, product rights not yet commercialized amounted to DKK 4,019 million (DKK 320 million in 2018).

2) Other rights and projects in progress primarily include the IT system SAP. The amounts include directly attributable internal expenses.

For details on the adjustment in intangible assets in the condensed consolidated financial statements.

–

dif fer Te s b etw ets d l iab ilit ies mp ora ry en ce ee n a ss an as		Adj ust nt me			Adj ust nt me			Adj ust nt me

	Adj ust nt me			Adj ust nt me

To the shareholders of H. Lundbeck A/S

s y s

Collectively referred to as the " ".

requirements are further described in the Auditor's responsibilities

International Ethics Standards Board for Accountants' Code of .

Revisonspartnerselskab issued the Independent Auditor's Report on

- continued

Management's responsibilities for the

is is

Group's and the Parent Company's ability to continue as a going

Auditor's responsibilities for the audit of the

fraud or error, and to issue an auditor's report that includes our

• ●
• ● on the effectiveness of the Group's and the Parent Company's
• ●

● Conclude on the appropriateness of Management's use of the on the Group's and the Parent Company's ability to continue as exists, we are required to draw attention in our auditor's report auditor's report. However, future events or conditions may

ADJUSTED SUPPLEMENTARY INFORMATION TO THE ANNUAL REPORT 2019

= CONTENTS

INDEPENDENT AUDITOR'S REPORT ON THE ADJUSTED SUPPLEMENTARY INFORMATION TO THE ANNUAL REPORT 2019

• continued

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

Hellerup, 5 Janurary 2021 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab CVR No 33 77 12 31

Lars Baungaard State Authorised Public Accountant Mne 23331

Torben Jensen State Authorised Public Accountant Mne18651

DocuSign Envelope ID: E5059EA7-87CF-4385-8E2F-DC2F7965D008

H. Lundbeck A/S Ottiliavej 9 2500 Valby Denmark

Corporate Communication Tel. +45 36 30 13 11 information@lundbeck.com www.lundbeck.com CVR number 56759913