Investor Presentaiton
Novo Nordisk Annual Report 2023
Introducing Novo Nordisk Strategic Aspirations Risks
Management
Consolidated statements
Additional information
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The free cash flow is expected to be DKK 64-74 billion reflecting the sales
growth, a favourable impact from rebates in the US countered by
investments in capital expenditure.
All of the above expectations are based on assumptions that the global
or regional macroeconomic and political environment will not
significantly change business conditions for Novo Nordisk during 2024,
including energy and supply chain disruptions, the potential implications
from major healthcare reforms and legislative changes as well as
outcome of legal cases including litigations related to the 340B Drug
Pricing Program in the US, and that the currency exchange rates,
especially the US dollar, will remain at the current level versus the
Danish krone. Neither does the guidance include the financial
implications of any new significant business development transactions
and significant impairments of intangible assets during 2024.
Expectations are as reported,
if not otherwise stated
Sales growth
at CER
as reported
Operating profit growth
at CER
as reported
Financial items (net)
Effective tax rate
Capital expenditure (PP&E)
Depreciation, amortisation and
impairment losses
Free cash flow (excluding impact
from business development)
Expectations
31 January 2024
18% to 26%
Around 1 percentage point
lower than at CER
21% to 29%
Around 2 percentage points
lower than at CER
Gain of around DKK 1.3 billion
19% to 21%
Around DKK 45 billion
Around DKK 10 billion
DKK 64-74 billion
Novo Nordisk has hedged expected net cash flows in a number of
invoicing currencies and, all other things being equal, movements in
key invoicing currencies will impact Novo Nordisk's operating profit as
outlined in note 4.4 on Financial risks.
Forward-looking statements
Novo Nordisk's reports filed with or furnished to the US Securities and
Exchange Commission (SEC), including this statutory Annual Report 2023
and Form 20-F, which are both expected to be filed with the SEC in
January 2024 in continuation of the publication of this Annual Report
2023, and written information released, or oral statements made, to
the public in the future by or on behalf of Novo Nordisk, may contain
forward-looking statements. Words such as 'believe', 'expect', 'may',
'will', 'plan', 'strategy', 'prospect', 'foresee', 'estimate', 'project', 'anticipate',
'can', 'intend', 'target' and other words and terms of similar meaning
in connection with any discussion of future operating or financial
performance identify forward-looking statements. Examples of such
forward-looking statements include, but are not limited to:
⚫ statements of targets, plans, objectives or goals for future operations,
including those related to Novo Nordisk's products, product research,
product development, product introductions and product approvals
as well as cooperation in relation thereto,
⚫ statements containing projections of or targets for revenues, costs,
income (or loss), earnings per share, capital expenditures, dividends,
capital structure, net financials and other financial measures,
⚫ statements regarding future economic performance, future actions
and outcome of contingencies, such as legal proceedings, and
⚫ statements regarding the assumptions underlying or relating to such
statements.
In this Annual Report 2023, examples of forward-looking statements
can be found under the section related to our 'Strategic Aspirations' and
elsewhere. These statements are based on current plans, estimates and
projections. By their very nature, forward-looking statements involve
inherent risks and uncertainties, both general and specific. Novo Nordisk
cautions that a number of important factors, including those described
in this Annual Report 2023, could cause actual results to differ materially
from those contemplated in any forward-looking statements.
Factors that may affect future results include, but are not limited to,
global as well as local political and economic conditions, such as interest
rate and currency exchange rate fluctuations, delay or failure of projects
related to research and/or development, unplanned loss of patents,
interruptions of supplies and production, including as a result of
interruptions or delays affecting supply chains on which Novo Nordisk
relies, shortages of supplies, including energy supplies, product recalls,
unexpected contract breaches or terminations, government-mandated
or market-driven price decreases for Novo Nordisk's products,
introduction of competing products, reliance on information technology
including the risk of cybersecurity breaches, Novo Nordisk's ability to
successfully market current and new products, exposure to product
liability and legal proceedings and investigations, changes in
governmental laws and related interpretation thereof, including on
reimbursement, intellectual property protection and regulatory controls
on testing, approval, manufacturing and marketing, perceived or actual
failure to adhere to ethical marketing practices, investments in and
divestitures of domestic and foreign companies, unexpected growth in
costs and expenses, strikes and other labour market disputes, failure to
recruit and retain the right employees, failure to maintain a culture of
compliance, epidemics, pandemics or other public health crises, effects
of domestic or international crises, civil unrest, war or other conflict and
factors related to the foregoing matters and other factors not
specifically identified herein.
For an overview of some, but not all, of the risks that could adversely
affect Novo Nordisk's results or the accuracy of forward-looking
statements in this Annual Report 2023, reference is made to the overview
of risk factors in 'Risk management' of this Annual Report 2023.View entire presentation