Good leadership and governance practices

Good leadership and governance practices

Managing the entire value creation chain through our vertical integration is a vital part of our long-term success.

Resilient and flexible vertically integrated business model

The essential advantages of our development strategy are vertical integration and connecting the development, production know-how and processes. Managing the entire process from start to finish allows us to introduce high-quality, safe, effective and affordable products to the market in time and make sure these products are readily available to consumers. Vertical integration guarantees flexibility and resilience of our business model, especially in critical and unpredictable situations when business continuity is important.

Legislative and regulatory compliance

When working and carrying out tasks, all employees consider fundamental ethical principles of honesty, loyalty, professionalism and applicable regulations, and Krka’s internal rules.

Management diversity, independence and competence

Key areas of our Diversity Policy are: gender, age and qualification profile diversity of the management and supervisory bodies. The Policy is aimed at having a balanced gender structure, proper interdisciplinarity and age group representation in order to transfer experiences and knowledge.

Sustainability linked remuneration

The remuneration policy is based on Krka’s long-term development strategy and encourages the Management Board to achieve Krka’s strategic objectives, pursue long-term development and sustainable business operations.

Information security

We manage information security risks by ISMS, the ISO 27001-certified information security management system.

Prosperous business operations and financial strength

Our business strategy is aimed at achieving long-term business objectives and stability of business operations. Good business performance and financial stability provide resilience in the changing business environment and strengthen our position of a reliable partner in the value chain. Through our economic impact we ensure the wider society, suppliers, customers, and other stakeholders to grow together with us.

Supply chain and business continuity

A complex and broadly subdivided vertically integrated business model requires responsible and sustainable purchasing of raw materials, materials and services. We strive for responsible and long-term partner relations with our suppliers and encourage growth and development in order to ensure timely and high-quality supplies.

Contribution to local community development

In accordance with our mission living a healthy life, we allocate most of our resources to projects related to health and quality of life, which is also related to United Nations’ sustainable development goal No. 3 (health and well-being). We foster an integrated and responsible social development, scientific research, intergenerational and interdisciplinary cooperation, adherence to diversity principles, and healthy lifestyles. We foster long-term partnerships through sports, culture, healthcare, science, education and humanitarian actions.

Goals

Strengthen the vital elements of vertically integrated business model, flexibility and resilience of the business model targeting CapEx.
Apply good practices when appointing Management and Supervisory Board members: (i) consider professionalism and qualifications for the function; (ii) regard at least profession, age (transfer of experience), and gender diversity; (iii) target the 40-33-2026 gender diversity model.
Pursue corporate compliance and integrity of operations by effective internal controls.
Upgrade business processes and business policies, and hence improve sustainable governance processes and sustainable compliance.
Maintain certification according to ISO/IEC 27001.
Provide for uninterrupted supply chain operations.
Prepare a due diligence policy compliant with the CS3D Directive.
Endeavour for greater weight of ESG-criteria in supplier assessment.

OBJECTIVES BY 2028

Investments – Target CapEx (€ million): €140 per year on average

EBITDA margin: > 25%

Net profit of majority shareholders for dividend pay-outs: 50% at least

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