Activities and duties

President and CEO of the parent company

The President and CEO of the parent company is elected by the Board of Directors. In accordance with the Finnish Companies Act, the President and CEO is in charge of the day-to-day management of the Company in accordance with instructions and orders issued by the Board of Directors. In addition, the President and CEO ensures that the bookkeeping of the Company complies with the law and that its asset management is arranged in a reliable way.

The President and CEO of the parent company manages the Group’s business operations through the Business divisions. Accordingly, the executives responsible for the Business divisions report to the President and CEO. The President and CEO carries out the steering and supervision of the operations of the Business divisions with the assistance of the Executive Management Board and the Group-level functions.

Executive Management Board

The Executive Management Board includes the President and CEO as Chair, and other persons appointed by the Board of Directors of the parent company as members. The Executive Management Board assists the President and CEO in decision-making.

The Executive Management Board handles the most significant issues relating to the operations of the Group and its units, including all issues of the Business divisions or Group level functions that are referred to be handled by the Board of Directors of the parent company. However, the President and CEO may, where deemed appropriate, decide that an issue shall not be referred to be handled by the Executive Management Board.

Group level functions

The Group-level functions are part of the management and supervision system, participating in the steering and supervision of the operations of the Group entities in their own operating areas. In this task, the Group-level functions assist the President and CEO in the management of the Group. At the Group level functions are in charge of various functions.

Business divisions and Group level functions

The business operations of the Group are organised into Business divisions. Each Business division is managed by an executive, who is responsible for the operations and operative management of the Business division and who reports to the President and CEO.

The Business divisions of the Group are:

• Animal Health
• Branded Products
• Fermion (belongs to Global Operations)
• Generics and Consumer Health
• Innovative Medicines.

The Group level functions, within their designated areas of responsibility, support all the Business divisions of the Group and provide the services that the Business divisions require. The Group level functions are as follows:

• Corporate Functions
• Corporate Strategy and Program Management
• Finance and Business Development
• Global Operations
• Research & Development
• Quality Management.

Administration of legal entities

From the point of view of business operations, the Group subsidiaries operate in accordance with the Group’s management system. In matters that are not directly subject to any Business division or Group level function, the subsidiaries operate in accordance with instructions by the President and CEO of the parent company.