The Pelion Healthcare Group's Annual Report is the Group's third consecutive report discussing activities, financial results and corporate social responsibility in a comprehensive manner. The CSR data were integrated with other sections of the annual report to present a broad picture of how the Group companies manage their social impacts and build their value.

The reporting period is from January 1st to December 31st 2014, in line with the adopted annual reporting cycle. All data and information disclosed in this report refer to the holding company Pelion S.A. and to the companies operating in four business lines, that is: wholesale (the PGF Group), sales to hospitals (PGF Urtica Sp. z o.o.), retail sales in Poland and Lithuania (the CEPD Group), services for manufacturers (Pharmalink Sp. z o.o.) and other companies.

The reporting period saw no major changes in the degree and nature of the Group companies’ impact on their environment, which could affect the comparability of the Group’s performance in individual reporting periods or in relation to other entities.

The report for was drawn up based on Global Reporting Initiative guidelines [3] at C+ level, and verified by an independent certified auditor.

In defining the content of the report, the key objective was to demonstrate how the Group companies build value over time, both to their own benefit and for their stakeholders, insofar as this contributes to creating value for the entire Pelion Healthcare Group. Special emphasis was put on workplace-related matters, as people are Pelion’s greatest asset. The report also addresses environmental issues, customer relations and corporate social responsibility. It presents both local and nationwide initiatives. In preparing the report, the Company drew on the information and experience shared by other entities in Poland and abroad, which proved to be of utmost importance and help. Participation in the World Economic Forum in Davos, a major trend-setting event, was particularly inspiring. The scope of information disclosed in the report was also determined by the Pelion’s CSR strategy objectives and the values which guide us in our everyday work.

In discussing the strategy followed by the Pelion Healthcare Group companies, we went beyond the reporting period in order to outline, as far as possible, their key focus areas for the future. In an effort to cover all major factors potentially affecting the value creation process in a long term, we sought to present all information in the most succinct and precise manner possible, so as to facilitate comparison of the Company's performance over time and in relation to other entities. The extent of reported information has been growing by the year, and in the 2014 report certain indicators cover more entities than in 2013.

We are taking this opportunity to thank all stakeholders that have contributed to the preparation of the Pelion Healthcare Group's 2013 Annual Report, including the supervisory bodies, top management and employees of the Group companies, who collected and analysed data on the Group's activities on an ongoing basis, as well as our trading and social partners whose feedback and opinions help us gain more insight into our business and improve management of the shared value creation process. Their involvement in the reporting process and the effective stakeholder dialogue help us better understand how our different business lines, their impact on the stakeholders, the nature of mutual relations, and the risks inherent in the decision-making process, are interrelated with the process of value creation over time at the Pelion Healthcare Group.

We will be grateful to all stakeholders for comments and suggestions that will help us to improve reporting in the future. We invite you to fill in the questionnaire evaluating Integrated Annual Report 2014.

Reporting Team

The Integrated Annual Report, which communicates key financial and non-financial data to stakeholders and ensures stakeholder dialogue and feedback related to the company, has been noted by the Responsible Business Forum as a Best Practice in 2014 and featured in the ‘Responsible Business in Poland. Best Practices 2014’ report.