ANNUAL REPORT 2021

LUNDBECK ANNUAL REPORT 2021 E CONTENTS CONSOLIDATED FINANCIAL STATEMENTS NOTE 14 75/111 14 INCENTIVE PROGRAMS - CONTINUED Granted Warrant programs Number of persons included in the program in 2012 102 Total number of warrants granted 692,003 vesting date. The fair value at the time of the initial grant was DKK 250.97 per RCU (DKK 258.41 for the 2020 program). The RCUS granted in 2017 vested in 2021, after which the program was settled. The RCUs granted in 2016 vested in 2020, after which the program was settled. Number of warrants granted to the registered Executive Management Fair value, liability and expense recognized in the statement of profit or loss Vesting date Exercise period begins Exercise period ends Exercise price, DKK Fair value at the date of grant, DKK 31.03.15 01.04.15 31.03.20 113.00 24.11 Warrants 2020 1 January Registered Executive Management Executives Number Number Other Number Total Number Average exercise price DKK Exercised Expired 31 December 3,458 (3,458) 23,527 (8,039) (15,488) 26,985 (11,497) (15,488) 113.00 113.00 113.00 The RSUs granted are recognized in profit or loss for 2021 at an expense corresponding to the fair value at the time of grant for the part of the vesting period that concerns 2021. The total expense recognized in respect of equity-settled programs amounted to DKK 37 million (DKK 30 million in 2020). At 31 December 2021, the fair value of the remaining equity-settled programs was DKK 91 million (DKK 89 million in 2020). The RCUS granted are recognized in the income statement at an expense corresponding to the value adjustment for the year based on the performance of the Lundbeck share. The total expense recognized in respect of cash-settled programs amounted to DKK 4 million (DKK 4 million in 2020) and covers all cash- settled programs in force in 2021. At 31 December 2021, the total liability in respect of cash-settled programs was DKK 11 million (DKK 7 million in 2020) and covers all cash-settled programs. The total expense recognized in profit or loss for all incentive programs amounted to DKK 41 million in 2021 (DKK 34 million in 2020). Cash-settled programs In 2021, the cash-settled programs consisted of restricted cash units (RCUs). The cash-settled programs cannot be converted into shares because the value of the programs is distributed as a cash amount. In February 2021 (February 2020), Lundbeck established an RCU programme for the Chief Executive Officer (CEO) and a few key employees in the US subsidiaries. The terms and conditions are similar to those applying to the RSU programme granted to the registered Executive Management and key employees of the Parent company and its non-U.S. subsidiaries in February the same year. The RCUS granted to the CEO, a total of 33,621 (30,012 for the 2020 program), and the RCUS granted to the key employees, a total of 1,505 (1,526 for the 2020 program), will vest three years after grant (for the 2020 program will vest three years after grant). Vesting is subject to the Board of Directors' decision on vesting, to Lundbeck achieving certain strategic and financial targets specified by the Board of Directors and to continuing employment with the Group during the vesting period. The size of the amount depends on the value of the Lundbeck share on the

View entire presentation