Novo Nordisk Annual Report 2021
Contents Introducing Novo Nordisk
Strategic Aspirations
Key risks Management
Consolidated statements
Additional information
Novo Nordisk Annual Report 2021 68
Section 4
Capital structure
and financial items
4.1 Distribution to shareholders
4.2 Share capital, Treasury shares and Other reserves
Development in number of shares
Million shares
Shares beginning of 2020
A shares
537
B shares
Total
1,863
2,400
Shares cancelled in 2020
(50)
(50)
received for disposing of treasury shares are deducted directly in equity.
The purchase of treasury shares during the year relates to the remaining
part of the 2020 share repurchase programme, totalling DKK 1 billion and
the DKK 20 billion Novo Nordisk B share repurchase programme for 2021, of
which DKK 1.6 billion was outstanding at year-end. The programme ended
on 1 February 2022. Transfer of treasury shares relates to the long-term
share-based incentive programme and restricted stock units to employees.
Specification of Other reserves
Outstanding shares end of 2020
Shares cancelled in 2021
537
1,813
2,350
(40)
(40)
DKK million.
Exchange
rate ad-
justments
Cash flow Tax and
hedges other items
Total
Outstanding shares end of 2021
537
1,773
2,310
2019
DKK million
2021
2020
2019
Interim dividend for the year
8,021
Dividend for prior year
13,496
7,570
12,551
7,100
12,309
Share repurchases for the year
19,447
16,855
Total
40,964
36,976
15,334
34,743
Each A share of DKK 0.2 per share carries 200 votes and each B share of
DKK 0.2 per share carries 20 votes. At the end of 2021, the share capital
amounted to DKK 107 million in A share capital (DKK 107 million in 2020 and
2019) and DKK 355 million in B share capital (DKK 363 million in 2020 and
DKK 373 million in 2019).
Reserve at the
beginning of the year
Other comprehensive
income, net
Reserve at the end
of the year
2020
(1,065)
(1,677)
696
(2,046)
226
1,348
(222)
1,352
(839)
(329)
474
(694)
Treasury shares
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.
Market
value,
Treasury
DKK million shares in %
2021
Number of
B shares
(million)
2020
Number of
B shares
(million)
Other comprehensive
income, net
(1,689)
1,713
(567)
(543)
Transferred to
16,016
(17,066)
(486)
Value adjustment
Holding at the end
of the year
19,447
4,947
22,858
The net cash distribution to shareholders in the form of dividends and share
repurchases amounts to DKK 40,964 million, compared with a free cash flow
of DKK 29,319 million.
The total dividend for 2021 amounts to DKK 23,711 million (DKK 10.40 per
share). The 2021 final dividend of DKK 15,690 million (DKK 6.90 per share) is
expected to be distributed pending approval at the Annual General Meeting.
The interim dividend of DKK 8,021 million (DKK 3.50 per share) was paid in
August 2021. The total dividend for 2020 was DKK 21,066 million (DKK 9.10
per share), of which the final dividend of DKK 13,496 million (DKK 5.85 per
share) was paid in March 2021. No dividend is declared on treasury shares.
Novo Nordisk's dividend pay-outs are complemented by share repurchase
programmes.
Holding at the be-
ginning of the year
Cancellation of
treasury shares
Transfer regarding
restricted stock units
Purchase during the
year
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 (restricted stock units) and
restricted stock units to employees. Treasury shares are deducted from
the share capital on cancellation at their nominal value of DKK 0.2 per
share. Differences between this amount and the amount paid to acquire or
For information on transfer of cash flow hedge reserve to intangible assets refer
to note 4.4.
According to Danish corporate law, reserves available for distribution as
dividends are based on the financial statements of the parent company,
Novo Nordisk A/S. Dividends are paid from distributable reserves. As
of 31 December 2021 distributable reserves total DKK 51,114 million
(DKK 51,858 million in 2020), corresponding to the parent company's retained
earnings and reserve for cash flow hedges and exchange rate adjustments.
intangible assets1
418
(92)
326
1.6%
37.5
48.1
Reserve at the end
of the year
(2,528)
1,802
(185)
(911)
(40.0)
(50.0)
2021
Other comprehensive
(1.1)
(0.4)
income, net
1,624
(3,557)
1,117
(816)
Transferred to
34.7
39.8
intangible assets1
15
(2)
13
Reserve at the end
of the year
(904)
(1,740)
930
(1,714)
1.3%
31.1
37.5View entire presentation