Investor Presentaiton
Novo Nordisk Annual Report 2023
Financial statements of the parent company
Notes
1 Accounting policies
The financial statements of the parent company have been prepared in accordance
with the Danish Financial Statements Act (Class D) and other accounting regulations
for companies listed on Nasdaq Copenhagen.
The accounting policies for the financial statements of the parent company are
unchanged from the previous financial year. The accounting policies are the same as
for the consolidated financial statements with the adjustments described below. For a
description of the accounting policies of the Group, refer to the consolidated financial
statements.
No separate statement of cash flows has been prepared for the parent company; refer
to the statement of cash flows for the Group.
Supplementary accounting policies for the parent company
Intangible assets
Goodwill recognised in subsidiaries is amortised over 23 years, which reflects the
useful life of the underlying assets and activities generating the goodwill.
Financial assets
In the financial statements of the parent company, investments in subsidiaries and
associated companies are recorded under the equity method, using the respective
share of the net asset values in subsidiaries and associated companies. The equity
method is used as a measurement method rather than a consolidation method.
The net profit of subsidiaries and associated companies less unrealised intra-group
profits and amortisation of goodwill is recorded in the income statement of the parent
company. To the extent that net profit exceeds declared dividends from such companies,
the net revaluation of investments in subsidiaries and associated companies is
transferred to net revaluation reserve under equity according to the equity method.
Profits in subsidiaries and associated companies are disclosed as profit after tax.
Amounts owed by affiliates, where settlement is neither planned nor likely within
the foreseeable future, are treated as part of net-investments in subsidiaries, with
exchange rate adjustments recognised directly in equity through reserve for cash
flow hedges and exchange rate adjustments.
Tax
For Danish tax purposes, the parent company is assessed jointly with its Danish
subsidiaries. The Danish jointly taxed companies are included in a Danish on-account
tax payment scheme for Danish corporate income tax. All current taxes under the
scheme are recorded in the individual companies. Novo Nordisk A/S and its jointly
taxed subsidiaries are included in the joint taxation of the parent company, Novo
Holdings A/S.
2 Sales
DKK million
Sales by business segment
3 Employee costs
DKK million
2023
2022
Wages and salaries
19,525
14,656
Share-based payment costs
562
433
Pensions
1,709
1,281
Other social security contributions
301
247
2023
2022
Other employee costs
1,039
629
Total employee costs
23,136
17,246
Diabetes and Obesity care
197,969
142,413
Rare disease
109
243
Average number of full-time employees
Year-end number of full-time employees
23,754
19,201
26,111
20,926
Total sales
198,078
142,656
Sales by geographical segment
For information regarding remuneration to the Board of Directors and Executive
Management, refer to note 2.4 to the consolidated financial statements.
North America Operations
International Operations:
124,860
79,953
EMEA
China
Rest of World
Total sales
40,038
32,789
12,800
14,412
20,380
15,502
198,078
142,656
Sales are attributed to a geographical segment based on location of the customer.
For definitions of segments, refer to note 2.2 in the consolidated financial statements.
Refer to note 5.7 in the consolidated financial statements for an overview of
companies in the Novo Nordisk Group based on geographical areas.
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