Release number: 123
Release date: 10-03-2004
Release time: 08:15
Annual report 2003 – financial highlights

 

Â	DKKm	Growth in DKK	CER growth
Revenue	9,941	5%	9%
   - Cipralex®	645	729%	Â
   - Lexaproâ„¢	1,928	148%	Â
   - Cipramil®	4,340	-16%	Â
   - Celexaâ„¢	1,725	-27%	Â
   - Ebixa®	286	893%	Â
   - Other products	1,017	-2%	Â
Â	Â	Â	Â
Profit from operations	2,132	-10%	Â
Financial items, net	(76)	74%	Â
Net profit for the year	1,377	8%	Â
Â	Â	Â	Â
Cash flows from operating and investing activites	421	295%	Â
Earnings per share (EPS)	5.89	8%	Â
Proposed dividend per share	1.77	55%	Â

Share buyback
The Company today announces the introduction of a share buyback program up to a maximum of DKK 400,000,000 in accordance within the 10% authorization granted at general meetings from time to time. Shares will be purchased in the market through a designated bank and will be used for the continued development of the Company’s capital structure and for cancellation at appropriate time. The Lundbeck Foundation will through its wholly owned subsidiary, LFI A/S, participate in the buyback program on a pro rata basis, in order to maintain its shareholding at the same level. The pro rata participation by the Lundbeck Foundation ensures that the free float is maintained at approximately 27%. It is the Company's intention to carry out this program periodically across the year, taking account of market conditions, applicable laws and regulations on share repurchases and best practice in terms of execution. A tax clearance from the relevant Danish tax authorities has been sought in relation to the share buyback program.

New dividend policy
Moreover, the Supervisory Board recommends to the annual general meeting that dividend payments be raised to a level that conforms to industry practice. It is proposed to raise the dividend payment for 2003 to 30% of profit after tax, corresponding to a 55% increase compared with the dividend payment in 2002. At the same time, the company’s dividend policy is amended so that in the years ahead, the company intends to pay dividends of 25-35% of the profit after tax, compared with the previous range of 15-25%.

Outlook for 2004
For 2004, the company expects lower revenue in terms of Danish kroner compared with the 2003 revenue – lower than communicated to the market in connection with the announcement of the financial results for the first nine months of 2003 in November 2003.

In spite of this profit from operations is still expected to be on level with 2003 - before the USD 70 million initial payment received from Merck in connection with the gaboxadol collaboration agreement. Including the payment from Merck, profit from operations is expected to be approximately DKK 2.5 billion.

The free cash flow is expected exceed DKK 1.0 billion in 2004.

Investor contact
- Steen Juul Jensen, Vice President, tel +45 36 43 30 06
- Jacob Tolstrup, Investor Relations Manager, tel +45 36 43 30 79.

Media contact
- Anders Schroll, Media Relations Manager, tel +45 36 43 20 81

H. Lundbeck A/S is an international pharmaceutical company engaged in the research and development, production, marketing and sale of drugs for the treatment of psychiatric and neurological disorders. In 2003, the company’s revenue was DKK 9.9 billion. The number of employees is approx. 5,300.

The full Annual Report is available in a PDF version in both English and Danish.

Annual Report 2003 - English version (PDF, 1.8MB)
Annual Report 2003 - Danish version (PDF, 2.5MB)

H. Lundbeck A/S
Ottiliavej 9
DK-2500 Copenhagen Valby

Tel +45 36 30 13 11
Fax +45 36 30 19 40

information@lundbeck.com
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