Investor Presentaiton
Novo Nordisk Annual Report 2023
Introducing Novo Nordisk
Strategic Aspirations
Risks
Management
Consolidated statements
Additional information
4.2 Distribution to shareholders
Section 4
Capital structure and
financial items
4.1 Earnings per share
DKK million
2023
2022
Interim dividend for the year
13,430
9,613
Dividend for prior year
18,337
15,690
Share repurchases for the year
29,924
Total distribution for the year
61,691
24,086
49,389
2021
8,021
13,496
19,447
40,964
2023
2022
Net profit
DKK million
83,683
55,525
2021
47,757
Novo Nordisk's guiding principle is that any excess capital after the funding of organic
growth opportunities and potential acquisitions should be returned to investors.
Average number of shares
outstanding'
in million
shares
4,482.8
4,530.6 4,593.2
Dilutive effect of average
outstanding share pool
Average number of shares.
outstanding, including dilutive
in million
shares
12.0
14.0
13.0
in million
effect of outstanding share pool
Basic earnings per share
Diluted earnings per share
shares
DKK
DKK
4,494.8
18.67
4,544.6
18.62
12.26
12.22
4,606.2
10.40
10.37
The net cash distribution to shareholders in the form of dividends and share repurchases
amounts to DKK 61,691 million, compared with a free cash flow of DKK 68,326 million.
The total dividend for 2023 amounts to DKK 41,987 million (DKK 9.40 per share). A
final dividend for 2023 of DKK 28,557 million (DKK 6.40 per share) is expected to be
distributed pending approval at the Annual General Meeting. The interim dividend of
DKK 13,430 million (DKK 3.00 per share) was declared and paid in August 2023. The
total dividend for 2022 was DKK 27,950 million (DKK 6.20 per share), of which the final
dividend of DKK 18,337 million (DKK 4.08 per share) was declared and paid in March
2023. No dividend is declared on treasury shares.
Novo Nordisk's dividend pay-outs are complemented by share repurchase programmes.
At the end of 2023, the share capital amounted to DKK 107 million in A share
capital (DKK 107 million in 2022 and 2021) and DKK 344 million in B share capital
(DKK 349 million in 2022 and DKK 355 million in 2021).
The A share capital and number of A shares of DKK 0.10 was in 2023 unchanged
besides the effect of the split in trading units, and unchanged in 2022 and 2021.
In 2023, the B share capital decreased by DKK 5 million (equal to cancellation of
50 million shares of DKK 0.10). The corresponding decrease in 2022 was DKK 6
million (equal to cancellation of 60 million shares of DKK 0.10) and decrease in
2021 of DKK 8 million (equal to cancellation of 80 million shares of DKK 0.10).
Each A share of DKK 0.10 per share carries 100 votes and each B share of
DKK 0.10 per share carries 10 votes.
Treasury shares
DKK 0.10
(million)
DKK 0.10
(million)
2023
Number of
2022
Number of
Market
value
B shares of
B shares of
(DKK million)
Holding at the beginning of the year
Cancellation of treasury shares
Released allocated shares to employees
Purchase during the year
28,242
60.2
62.2
(23,450)
(50.0)
(60.0)
(4,433)
(9.5)
(3.7)
29,924
51.0
61.7
Value adjustment
5,817
Holding at the end of the year
36,100
51.7
60.2
1. Excluding treasury shares. For further information on the development in treasury shares, refer to note 4.3.
The trading unit of the Novo Nordisk B shares listed on NASDAQ Copenhagen was
changed from DKK 0.20 to DKK 0.10 as of 13 September 2023. The ADRs listed on
the New York Stock Exchange (NYSE) were similarly split as of 20 September 2023.
Comparative figures have been restated to reflect the change in trading unit from
DKK 0.20 to DKK 0.10.
ACCOUNTING POLICIES
Earnings per share is presented as both basic and diluted earnings per share. Basic
earnings per share is calculated as net profit divided by the monthly average number
of shares outstanding. Diluted earnings per share is calculated as net profit divided
by the sum of monthly average number of shares outstanding, including the dilutive
effect of the outstanding share pool. Refer to 'Financial definitions' for a description
of calculation of the dilutive effect.
4.3 Share capital, Treasury shares and Other reserves
Shares beginning of 2022
Shares cancelled in 2022
Development in number of shares
DKK million
A shares
1,075
B shares
3,545
(60)
Total
4,620
(60)
Outstanding shares end of 2022
Shares cancelled in 2023
1,075
3,485
4,560
(50)
Outstanding shares end of 2023
1,075
3,435
(50)
4,510
At the end of 2023, the holding of treasury shares amounted to 1.1% of the total
outstanding shares (1.3% of the outstanding shares in 2022). Treasury shares are
primarily acquired to reduce the company's share capital. In addition, a limited part
is used to finance Novo Nordisk's long-term share-based incentive programme and
restricted stock units to employees. Treasury shares are deducted from the share
capital on cancellation at their nominal value of DKK 0.10 per share. Differences
between this amount and the amount paid to acquire or received for disposing of
treasury shares are deducted directly in retained earnings.
The purchase of treasury shares during the year relates to the remaining part of the
2022 share repurchase programme, totalling DKK 1.5 billion and the DKK 30 billion
Novo Nordisk B share repurchase programme for 2023, of which DKK 1.6 billion was
outstanding at year-end. The programme ended on 29 January 2024.
The trading unit of the Novo Nordisk B shares listed on NASDAQ Copenhagen and
the ADRs listed on the New York Stock Exchange (NYSE) was split in 2023. Comparative
figures have been restated to reflect the split.
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