Novo Nordisk Annual Report 2021

Contents Introducing Novo Nordisk Strategic Aspirations Key risks Management Consolidated statements Additional information Novo Nordisk Annual Report 2021 74 4.9 Financial assets and liabilities Financial assets with the exception of other financial assets and the non- current part of other receivables and prepayments (DKK 267 million in 2021, DKK 674 million in 2020) are all due within one year. Other financial assets at amortised cost include DKK 335 million which are due in more than five years (DKK 280 million in 2020). Other financial assets measured at fair value through the income statement are minor shareholdings. 2,184 1,365 Financial assets by category DKK million 2021 2020 Other financial assets 553 766 Marketable securities 6,765 Fair value measurement hierarchy Derivative financial instruments (note 4.4) 1,690 2,332 DKK million 2021 2020 Financial assets at fair value through the Active market data 7,169 income statement 9,008 3,098 Other financial assets 363 300 Directly or indirectly observable market data 1,690 Trade receivables 15,036 11,643 Not based on observable market data 25,756 Other receivables and prepayments (current and non-current) 5,304 4,835 Total financial assets at fair value Active market data 34,615 634 2,332 16,223 19,189 - less prepayments and VAT receivables (3,438) (4,113) Directly or indirectly observable market data 2,184 1,365 Cash at bank (note 4.6) 10,720 12,757 Not based on observable market data Financial assets at amortised cost 27,985 25,422 Total financial liabilities at fair value Trade receivables in a factoring portfolio¹ 25,607 16,091 Financial assets at fair value through other comprehensive income 25,607 16,091 Total financial assets at the end of the year by category 62,600 44,611 Financial liabilities by category Derivative financial instruments (note 4.4) 2,184 1,365 Financial liabilities measured at fair value through the income statement 2,184 1,365 Borrowings (non-current)2 (note 4.5) 12,961 2,897 Borrowings (current)² (note 4.5) 13,684 7,459 Trade payables 8,870 5,717 Other liabilities (non-current) Other liabilities (current) 360 19,600 17,005 - less VAT and duties payable (590) (598) Financial liabilities measured at amortised cost 54,885 32,480 Total financial liabilities at the end of the year by category³ 57,069 33,845 1. Trade receivables which are measured at fair value through other comprehensive income, which have no associated loss allowance. Refer to note 3.3. 2. The fair value of loans approximates the booked amount. 3. Please refer to note 4.5 for a maturity analysis for non-current and current borrowings. Financial assets and liabilities measured at fair value can be categorised using the fair value measurement hierarchy above. There were no transfers between the 'Active market data' and 'Directly or indirectly observable market data' categories during 2021 or 2020. There are no significant intangible assets or items of property, plant and equipment measured at fair value. For a description of the credit quality of financial assets such as trade receivables, cash at bank, current debt and derivative financial instruments, please refer to notes 4.3 and 4.4. Accounting policies Depending on purpose, Novo Nordisk classifies financial instruments into the following categories: - Financial assets at fair value through the income statement - Financial assets at amortised cost - Financial assets at fair value through other comprehensive income - Financial liabilities at fair value through the income statement - Financial liabilities at amortised cost Management determines the classification of its financial instruments on initial recognition and re-evaluates this at the end of every reporting period to the extent that such a classification is permitted or required. Recognition and measurement Financial assets at fair value through the income statement consist of equity investments, marketable securities and derivative financial instruments. These are initially recognised at fair value. Equity investments are included in other financial assets. Net gains and losses arising from changes in the fair value of equity instruments and marketable securities are recognised in the income statement as financial income or expenses. For a description of accounting policies on derivative financial instruments designated to hedge accounting, please refer to note 4.4. Financial assets at fair value through other comprehensive income are trade receivables that are held to collect or to sell in factoring agreements. Financial assets at amortised cost are cash at bank and non-derivative financial assets solely with payments of principal and interest. Novo Nordisk normally 'holds-to-collect' the financial assets to attain the contractual cash flows. If collection is expected within one year (or in the normal operating cycle of the business, if longer), they are classified as current assets. If not, they are presented as non-current assets. These are initially measured at fair value less transaction costs, except for trade receivables that are initially measured at the transaction price. Subsequently, they are measured at amortised cost using the effective interest method less impairment. For a description of accounting policies on trade receivables, please refer to note 3.3. Purchases and sales of financial assets are recognised on the settlement date. Financial assets are removed from the balance sheet when the rights to receive cash flows have expired or have been transferred and Novo Nordisk has substantially transferred all the risks and rewards of ownership. Financial liabilities at fair value through the income statement consist of financial derivative instruments. Financial liabilities at amortised cost consist of borrowings (loans, issued bonds, bank overdrafts and lease liabilities), trade payables and other liabilities. These are initially recognised at the fair value of the proceeds received less transaction costs. The difference between the proceeds received and the nominal value is recognised in financial expenses over the term of the loan using the effective interest method. For initial recognition of lease liabilities refer to note 4.5. Financial liabilities are derecognised when the obligation is repaid, cancelled or expires.

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