Crisis financiera y trabajo de cuidados

Non-controlling interest Equity attributable to non- controlling interest Net profit attributable to the non-controlling interest

In € thousand 31 Dec 2015 31 Dec 2014 31 Dec 2015 31 Dec 2014 31 Dec 2015 31 Dec 2014

Interest held by minority shareholders

in Golf Grad Otočec, d. o. o.* 36.9% 36.9% 1,187 1,261 -74 -78

Interest held by minority shareholders

in Farma GRS, d. o. o.** 0.3% 0.3% 61 47 14 18

Total 1,248 1,308 -60 -60

*Terme Krka has a 63.1-percent holding in Golf Grad Otočec, d. o. o.; the remaining shareholders include IMP PROMONT-ELEKTRO d.o.o. (3.05 %), Abanka Vipa d.d. (6.10 %), Trimo, d.d. (6.10 %), Begrad, d.d. (3.05 %), Lesnina inženiring, d.d. (6.10 %), Telekom Slovenije, d.d. (4.51 %), Kovinotehna MKI d.o.o. (3.05 %), IMP PROMONT d.o.o. (3.05 %) and Vodnogospodarsko podjetje Novo mesto, d.d. (1.91 %).

** Krka has a 99.7-percent holding in Farma GRS, d. o. o. with Metronik d.o.o., Iskra Pio d.o.o. and Gospodarska zbornica Dolenjske in Bele krajine each having a 0.1% holding.

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21. Earnings per share

Basic earnings per share amounted to €4.86 in 2015, and decreased by 4.2% over the previous year, when it amounted to €5.07. The calculation of earnings per share took into account the profit for the period attributable to the controlling interests in the amount of €158,245 thousand (2014: €166,221 thousand). The weighted average number of shares was accounted for in the calculation for both years, i.e. 32,550,928 shares for 2015 and 32,768,062 shares for 2014. Treasury shares were eliminated from the calculation.

All shares issued by the controlling company are ordinary shares; thus the diluted earnings per share ratio equalled the basic earnings per share.

22. Borrowings

In € thousand 31 Dec 2015 31 Dec 2014

Non-current borrowings 0 0

Current borrowings 0 38,019

– borrowings from domestic banks 0 38,000

– current interest payable 0 19

Total borrowings 0 38,019

23. Provisions

In € thousand

Balance at

31 Dec 2014 Formation Utilisation Reversal

Translation reserve

Balance at 31 Dec 2015

Provisions for lawsuits 20,100 165 0 -20,000 -1 264

Provisions for post- employment benefits and other non-current employee benefits

76,938 10,874 -3,447 -234 0 84,131

Other provisions 428 166 -115 -9 0 470

Total provisions 97,466 11,205 -3,562 -20,243 -1 84,865

The amounts of provisions for lawsuits referring to intellectual property are defined on the basis of the noted amount of the indemnification claim, or on the basis of the anticipated amount if the indemnification claim has not yet been disclosed. External advisers for disputes referring to intellectual property are engaged to define the anticipated amounts. Furthermore, every year, the management verifies the calculated amount of provisions for each individual claim that has not yet been settled.

In 2014, other income included damages received and the reimbursement of court fees from a lawsuit between Krka and AstraZeneca for the unjustified temporary prohibition of the sale of Krka's pharmaceutical Esomeprazole in Great Britain over a period from mid-2010 to the summer of 2011. Since the plaintiff appealed the decision of the court, Krka set aside provisions of total €20,000 thousand in 2014. As all legal remedies in the case had been exhausted, Krka reversed the total amount of the provisions in 2015.

In addition to the aforementioned lawsuits over intellectual property, 10 other lawsuits are in progress against Krka and its subsidiaries, with claims totalling €10,250 thousand, as well as 20 lawsuits referring to other areas (labour legislation, civil lawsuits), with claims totalling €1,050 thousand. Based on its familiarisation with the content of disputes and based on the legal opinion of external experts, the management of the Company

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assessed that there was no need to set aside provisions relating to the above disputes and lawsuits. However, provisions totalling €264 thousand were set aside on account of other legal actions.

Provisions for post-employment benefits and other non-current employment benefits are based on a calculation performed by a certified actuary, and were accounted for under the following assumptions:

 the selected discounted interest rate is 1.92-percent annually, which equals the return on 15-year corporate bonds with high credit ratings in the euro area at the end of November 2015 (2014: 2.45- percent);

 currently applicable amounts of retirement benefits and anniversary bonuses as defined by internal acts;  employee turnover, depending in particular on the employees’ age;

 mortality rates calculated on the basis of of the latest mortality tables available;  increase in wages by 1.80% (the same as in 2014).

Provisions for post-employment benefits

In € thousand 2015 2014

Balance at 1 Jan 62,298 42,644

Employee benefit costs 3,040 1,626

Interest costs 1,582 2,021

Post-employment benefits paid -2,596 -1,745

Actuarial surplus/deficit, of that: 3,946 17,752

- change in financial assumptions 4,148 16,307

- experience -202 1,445

Balance at 31 Dec 68,270 62,298

Sensitivity analysis

Discount rate Salary increase

Change in Percentage point Percentage point

Change by 0.5 -0.5 0.5 -0.5

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24. Deferred revenues

In € thousand 31Dec 2014 Balance at

New deferred revenues received

Deferred revenues

reversal 31Dec 2015 Balance at

Grants received from the European Fund for Regional Development and the Republic of Slovenia budget for construction of the new Notol 2 plant for production of pharmaceuticals

2,730 187 -267 2,650

Grants received from the budget for the Dolenjske and

Šmarješke Toplice health resorts and Golf Grad Otočec 4,296 0 -196 4,100

Grants received from the European Regional Development

Fund received for the Sinteza 4 project 8 0 -4 4

Grants received from the European Regional Development

Fund – development of new technologies (FBD project) 535 0 -98 437

Grants received from the European Regional Development Fund for setting up information and technology solutions

system (GEN-I) 0 22 -3 19

Grants by the European Fund – Development Centres of the

Slovene Economy 6,770 -26 -650 6,094

Property, plant and equipment received for free 545 45 -535 55

Emission coupons 21 21 -20 22

Other deferred revenue 0 211 -211 0

Total deferred revenue 14,905 460 -1,984 13,381

Construction of the new Notol 2 plant for production of pharmaceuticals and FBD projects are partly funded by the European Union (European Regional Development Fund). The projects are carried out within the framework of the Operational Programme for Strengthening Regional Development Potentials for the Period 2007-2013; Priority Axis 1: Competitiveness and Research Excellence: Main Type of Activity 1.1.: Improvement of Competitiveness and Research Excellence.

The recorded amounts of deferred revenues are reduced by a proportionate share of the depreciation of assets to which the grants refer and by any other types of expenses incurred.

25. Trade payables

In € thousand 31 Dec 2015 31 Dec 2014

Payables to domestic suppliers 38,298 46,252

Payables to foreign suppliers 61,742 64,442

Payables from advances 3,831 4,357

Total trade payables 103,871 115,051

26. Other current liabilities

In € thousand 31 Dec 2015 31 Dec 2014

Accrued contractual discounts on products sold 128,179 106,603

Payables to employees – gross wages, other receipts and charges 33,657 35,091

Other 18,501 22,329

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Accrued contractually agreed discounts on products sold include discounts to which customers are entitled when the relevant terms and conditions are fulfilled; these discounts are not granted to customers in the year of sale. In terms of value, the majority, i.e. three quarters, account for discounts tied to sales based on public tenders in some Western European markets.

The item ‘Other‘ also includes current liabilities to the state on account of VAT payable in the amount of €11,254 thousand and other current liabilities to the state totalling €3,437 thousand.

27. Contingent liabilities and commitments

In € thousand 31 Dec 2015 31 Dec 2014

Guarantees issued 19,150 18,822

Other 620 620

Total contingent liabilities 19,770 19,442

Major items of guarantees issued include a counter guarantee for the due payment of potential liabilities from a customs guarantee of €6,000 thousand issued in Belarus, a contract bond issued on behalf of the subsidiary Farma GRS in the amount of €5,300 thousand, and a guarantee issued to the Financial Administration of the Republic of Slovenia in the amount of €2,500 thousand. The item 'Other' includes affected property in Serbia in the amount of €620 thousand.

In addition to the aforementioned lawsuits referring to intellectual property, 10 other lawsuits are in progress against Krka and its subsidiaries, with claims totalling €10,250 thousand, as well as 20 lawsuits referring to other areas (labour legislation, civil lawsuits) with claims totalling €1,050 thousand. Based on its familiarisation with the content of the disputes and on the legal opinion of external experts, the Management of the Company assessed that there was no need to set aside provisions relating to the above disputes and lawsuits. However, provisions totalling €264 thousand were set aside on account of other legal actions.

Based on contracts signed in connection with on-going investments, at year-end the Group accounted for €62,643 thousand of future liabilities resulting from the acquisition of property, plant and equipment (2014 year-end: €35,596 thousand).