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Investor Presentaiton

Novo Nordisk Annual Report 2023 Introducing Novo Nordisk Strategic Aspirations Risks Management Consolidated statements Additional information. KEY ACCOUNTING ESTIMATES REGARDING DEFERRED INCOME TAX ASSETS AND PROVISIONS FOR UNCERTAIN TAX POSITIONS Management has considered future taxable income and has estimated the amount of deferred income tax assets that should be recognised. The estimate is based on an assessment of whether sufficient taxable income will be available in the future, against which the temporary differences and unused tax losses can be utilised. The total tax value of unrecognised tax loss carry-forwards amounts to DKK 360 million in 2023 (DKK 318 million in 2022). In the course of conducting business globally, tax and transfer pricing disputes with tax authorities may occur. Management has estimated the expected outcome of the disputes by using the 'most likely outcome' method to determine the provisions for uncertain tax positions. Management considers the provisions made to be adequate. However, the actual obligation may deviate and depends on the result of litigation and settlements with the relevant tax authorities. Development in deferred income tax assets and liabilities DKK million 2023 Net deferred tax asset/(liability) at the beginning of the year Income/(charge) to the income statement Income/(charge) to other comprehensive income Income/(charge) to equity Additions from acquisitions Effect of exchange rate adjustment Property, plant and equipment Offset Intangible assets Inventories Liabilities Other within countries Total 60 60 (2,402) (213) (8,279) (2,106) 2,595 (645) 11,007 3,922 6,843 3,973 3,002 4,011 (224) (6) (129) (359) (120) (120) 62 62 54 144 (9) (547) 139 (219) Net deferred tax asset/(liability) at the end of the year Classified as follows: (2,561) (10,241) 1,717 14,427 6,876 10,218 Deferred tax asset at the end of the year Deferred tax liability at the end of the year 433 245 1,820 14,792 6,986 (3,896) 20,380 (2,994) (10,486) (103) (365) (110) 3,896 (10,162) 2022 Net deferred tax asset/(liability) at the beginning of the year (1,980) (7,375) 3,195 6,932 2,629 3,401 Income/(charge) to the income statement (413) 674 (465) 3,999 836 4,631 Income/(charge) to other comprehensive income (130) (141) (608) (879) Income/(charge) to equity 234 234 Additions from acquisition of businesses (note 5.3)¹ (1,475) 766 (709) Effect of exchange rate adjustment¹ Net deferred tax asset/(liability) at the end of the year¹ (9) (2,402) (103) (8,279) (5) 217 65 165 2,595 11,007 3,922 6,843 Deferred tax asset at the end of the year¹ 579 195 2,627 11,027 4,646 (5,170) 13,904 Deferred tax liability at the end of the year (2,981) (8,474) (32) (20) (724) 5,170 (7,061) 1. Comparatives were restated to reflect change in the provisional valuation of net identifiable assets from a business combination completed in 2022. Reference is made to note 5.3. Classified as follows:
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