Abbott Laboratories Pakistan : Transmission of Annual Report for the Year Ended December 31, 2022

Conquering the unchartered

Annual Report

Twenty twenty two

At Abbott, we've been relentlessly focused on improving people's health for more than 70 years. Today, we're tackling some of the world's most pressing healthcare challenges to help people at all ages and stages of life.

Because we believe the best medical product is the one that helps the most people, we design breakthrough solutions in each of our businesses - nutrition, branded-generic pharmaceuticals, medical devices, and diagnostics - to help ensure maximum access and affordability.

COMMITTED

People around the country depend on us in vital ways. We're committed to honoring that trust.

RELIABLE

Our portfolio spans the spectrum of healthcare, helping people at all ages and stages of life. This balance - forms the basis for Abbott's consistent and reliable performance.

RELEVANT

We've built our portfolio strategically for relevance to where medicine and technology, our markets and society are heading.

Table Of

Contents

Organizational Overview and External Environment

- Our Global Narrative 08

- Abbott Pakistan at a Glance 10

- Advancing Innovation in Pakistan 12

- Our business Segments 14

- Established Pharmaceuticals 18

- Nutrition 20

- Diagnostics 22

- Diabetes Care 24

- Key Brands 26

- Product Launches 32

- Awards and Recognitions 34

- Geographical Presence - Global & Local Footprints 36

- Our Vision, Our Mission, Code of Conduct,

Culture & Ethics 38

- Our Core Values 40

- Ownership, Operating and Group Structure 41

- Corporate Information 42

- Organizational Chart 43

- Business Model 44

- Position of Abbott Pakistan within the value chain 46

• - Significant factors effecting the external

  environment and the organization's response 48

• - Effect of seasonality on business in terms of

  production and sales 49

• - Legitimate needs, interests of key stakeholders and

  industry trends 50

- SWOT Analysis 51

- Competitive landscape and Market positioning 52

- The legislative, regulatory and political environment 53

- Significant changes from prior years 53

- History of major events 54

- Calendar of Significant events 56

Strategy and Resource

Allocation

- Objectives, Strategy and Resource Allocation Plans 60

• - Future Relevance of KPIs used to measure

  achievement of Strategic Objectives 62

• - Key resources and capabilities of the company which

  provides sustainable competitive advantage 62

• - Value created by Abbott, and for whom, using these

  resources and capabilities 63

• - The effects of Technological Change, Societal Issues, and Environmental Challenges on the Company's

  Strategy and Resource Allocation 63

- Strategic Decision-Making Process 64

- Fostering Culture 64

- Attitude to Risk 64

Sustainability and

Corporate Social Responsibility

• - Our Philosophy & Policy on Corporate Citizenship &

  Sustainability 76

• - Our Performance and Initiatives on Corporate

  Citizenship & Sustainability 76

- Corporate Social Responsibility 82

- Employee and Occupational Health & Safety 83

- Supporting our Communities 84

• - Status of adoption/compliance of the Corporate

  Social Responsibility (Voluntary) Guidelines, 2013 86

• - Certifications acquired and International Standards

  adopted 87

- Addressing Integrity and Ethical Issues

65Governance

- Significant Plans and Decisions 65

- Major Capital Expenditure 65

- Significant changes in objectives and strategies from

prior years 65

Risks and Opportunities

- Risk Management Framework and Methodology 68

• - Assessment of Principal risks and Uncertainties

  facing the Company 69

• - Boards efforts for determining the Company's Level of risk tolerance by establishing Risk Management

  Policies 69

• - Board's Statement regarding assessment of

  principal risks 69

- Key Risks & Opportunities Report 70

• • Key risks and opportunities

• • Types of capital affected

• • Sources of risks and opportunities

• • Likelihood & Magnitude of its effect

- Steps taken to mitigate / manage key risks and

create value from key opportunities 72

- Liquidity position of the Company 73

- Repayment of Debts 73

- Capital Structure and its adequacy 73

- Initiatives taken by the Company in promoting and

enabling Innovation. 73

- CEO's Message 90

- Board Composition 93

- Independent Directors 93

- Diversity in the Board 93

- Presence of Executive Directors on other Boards 93

- Directors' Profiles 94

- Chairman's Review Report (English) 98

- Chairman's Review Report (Urdu) 101

- Board Operations and decision making 102

• - Annual evaluation of the Board, its members and its

  committees and details of criteria used 103

• - Board's performance evaluation conducted by

  external consultant 103

- Formal Orientation course for Directors 104

- Directors' Training Program 104

• - External oversight of functions to enhance credibility

  of internal controls and systems 104

• - Related Party Transactions

  • Approved policy for related party transactions 104

  • Details of related party transactions 104

  • • Contracts or arrangement other than in the

    ordinary course of business 105

  • • Disclosure of Directors' interest in related party

    transactions 105

  • Conflict management and monitoring 105