2020 ANNUAL REPORT - Abbott Laboratories

1 2020 ANNUAL REPORT TABLE OF CONTENTSAt Abbott , we ve been improving people s health at all ages and stages of life since 1948. Today, we re addressing some of pakistan s most pressing healthcare challenges to help people live fuller, healthier, more dignified lives. Because we believe that the best medical product is the one that helps the most people, we design breakthrough products in each of our businesses branded-generic pharmaceuticals, nutrition, diagnostics and diabetes care to help ensure maximum access and affordability. Our balanced leadership across diverse markets enables us to deliver consistent growth and strong shareholder TO THE at Abbott believe we re in the best business there is: we get to help people live fuller lives through better health.

2 We recognise that as a privilege one that comes with responsibilities. As healthcare needs grow and change, Abbott pakistan works to stay ahead of those trends and respond with relevant, patient-centric solutions. We have built a sustainable growth platform that will continue to drive success for many years to Vision and Mission2 Key Performance Indicators2 Our Values5 Abbott Today6 Corporate Information8 Our Citizenship and Sustainability Priorities15 Abbott Proud18 We Were Built for This20 Value Chain22 Abbott pakistan at a Glance24 Ownership and Operating Structure24 Composition of Local versus Imported Materials25 Corporate Structure26 History Timeline28 Geographical Presence30 Established Pharmaceuticals32 Nutrition34 Diagnostics36 Diabetes Care38 Product Launches40 Objectives and Strategies45

3 Risk Management at Abbott46 Key Risks and Opportunities Report48 Analysis of Financial and Non-Financial Performance against Indicators50 Significant Factors affecting the External Environment and the Organisation s Response52 Corporate Social Responsibility54 Environment, Health and Safety56 Supporting our Communities58 Social and Environmental Responsibility Policy60 Human Resources64 Quality Assurance66 Awards and Recognitions68 Ethics and Compliance70 Corporate Governance78 Business Model - Integrated Reporting Framework80 Integrated Reporting Framework80 Unreserved Statement of Compliance to International Financial Reporting Standards82 Audit Committee Report84 Directors Profile86 Brief Terms of Reference of Board Committees87 Board Committees Attendance88 Review REPORT by the Chairman89 Review REPORT by the Chairman (Urdu)

4 90 Directors Report101 Directors REPORT (Urdu)102 Forward Looking Statement105 2020 Financial ReportMISSIONTo deliver consistently superior products and services which contribute significantly to improve the quality of life of be the most admired healthcare company in ANNUAL REPORTABBOTT PAKISTAN12020 FINANCIAL HIGHLIGHTSSALESRs. AND ASSUMPTIONS USED IN COMPILING THE INDICATORSA Key Performance Indicator (KPI) is a measurable value that demonstrates how effectively a company is achieving its business objectives. Both financial and non-financial KPIs are computed using formulae which are widely used in the industry and are relevant to different stakeholders such as shareholders, bankers and regulators etc.

5 OUR VALUESV alues are the foundation for building a meaningful corporate identity. Abbott is a company rooted in values and our core values of honesty, integrity and fairness describe a standard of behaviour expected of every has four differentiating values that speak of the unique strengths that have made our Company what it is today. The Company continues to build on these strengths to deliver our values are a blueprint for our employee behaviour. They are the underpinnings of our brand promise, defining how we serve our constituents. These values are woven into all business processes company-wide over time, determining how we plan and run our businesses, how we serve our customers, how we measure and motivate performance, and how we communicate internally and externally.

6 Aligning our organisation around this cohesive set of values has been critical to the achievement of Abbott s brand and business science and innovative commercialisationWe lead with solutions that address human needs by pioneering innovative treatments and solutions, and new approaches to managing PERFORMANCE INDICATORS2020 ANNUAL REPORTABBOTT PAKISTAN2 EARNINGS PER SHARERs. PROFIT PROFIT financial KPIs, the data used is generated through our internal management information systems, together with audited financial statements. Similarly, for non-financial KPIs, in addition to our internal management information systems, other tools are also used which include surveys and customer feedbacks.

7 Making a difference in people s livesCaring is central to the work that we do to help people live healthier lives. We have tremendous respect for the lives of everyone touched by our Company. Our respect for people is demonstrated in what we do and how we and purposeEnduring means both honouring our history and maintaining our commitment to the future. We will always be here to help keep people healthy. We keep our promises, acting in accordance with all of our outcomes and world-class executionWe drive for meaningful results, demanding of ourselves and each other, because our work impacts people s lives.

8 We are committed to working together to deliver solutions that are effective and profitable. Our focus on execution and collaboration ensures that we keep our promises to each other and to those we ANNUAL REPORTABBOTT PAKISTAN3 LEADING MARKET POSITIONS IN PAKISTANBRUFEN - #1 Brand in volumeARINAC - #1 Cold preparations without Anti-InfectivesKLARICID - #2 Macrolide AntibioticSURBEX Z - #1 Vitamin B Complex BrandDUPHASTON - #1 Brand for Progesterone DeficiencyEPIVAL - #1 Anti-Epileptic BrandENSURE - #1 Adult Nutrition SupplementDUPHALAC - #2 Laxative BrandPEDIASURE - #1 Child Nutrition SupplementSERC - #1 Vertigo BrandGLUCERNA - #1 Diabetic Nutritional SupplementBrands> Rs.

9 1 billion sales10At Abbott , we provide real answers to real problems, delivering breakthrough solutions to prevent, diagnose and treat health needs. We adapt quickly to changes, harnessing leading-edge science and technology to deliver the best possible solutions for some of the most important health ANNUAL REPORTABBOTT PAKISTANABBOTT TODAY52020 ANNUAL REPORTABBOTT PAKISTANRELEVANTA portfolio of diversified products, aligned with key health trendsBALANCEDA broad mix of business segments and customers that helps to insulate from volatility in any one marketTRUSTED A brand that s trusted by healthcare professionals and patients alikeDRIVEN A high-performance culture, driven to succeedSHARE TRANSFER COMMITTEESyed Anis Ahmed (Chairman)

10 Muhammad Anjum Latif Rana Seema Khan BANKING COMMITTEEM ohsin Ali Nathani (Chairman)Syed Anis AhmedSeema Khan NOMINATION COMMITTEEM unir A. Shaikh (Chairman)Syed Anis AhmedMohsin Ali NathaniEhsan Ali MalikCHIEF FINANCIAL OFFICERSyed Tabish Aseem* COMPANY SECRETARYH umayun Altaf **CHIEF INTERNAL AUDITORF ahad RehmanAUDITORSEY Ford Rhodes, Chartered Accountants(a member firm of Ernst & Young Global Limited)LEGAL ADVISORSOrr, Dignam & Co. Surridge & Beecheno BANKERSS tandard Chartered Bank ( pakistan ) Limited Deutsche Bank AGHabib Bank LimitedNational Bank of pakistan MCB Bank Limited Faysal Bank LimitedSENIOR MANAGEMENT TEAMSyed Anis Ahmed(Chief Executive Officer)Syed Tabish Aseem* (Chief Financial Officer)Ihsan Ullah Khan Khattak(Director Operations)Asim Shafiq(General Manager, Abbott NutritionInternational pakistan )Habib Ahmed(Country Manager, Abbott Diagnostics Division pakistan )Dr.