Novo Nordisk Annual Report 2021

Financial statements of the parent company Novo Nordisk Annual Report 2021 100 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 except for implementation of accounting policy related to goodwill. 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, please refer to the consolidated financial statements. No separate statement of cash flows has been prepared for the parent company; please refer to the statement of cash flows for the Group. Supplementary accounting policies for the parent company 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 basis 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. Goodwill is amortised over no more than 25 years which reflects the useful life of the underlying assets and activities generating the goodwill. 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 Danish subsidiaries are included in the joint taxation of the parent company, Novo Holdings A/S. 2 Sales DKK million 3 Employee costs DKK million 2021 2020 Wages and salaries Share-based payment costs Pensions 12,485 11,503 383 327 1,116 1,045 Other social security contributions Other employee costs 207 176 363 299 2021 2020 Sales by business segment Diabetes and Obesity care Biopharm Total employee costs in the income statement 14,554 13,350 112,347 100,741 Average number of full-time employees 16,851 15,782 206 199 Year-end number of full-time employees 17,534 16,151 Total sales 112,553 100,940 Sales by geographical segment North America Operations International Operations: For information regarding remuneration to the Board of Directors and Executive Management, please refer to note 2.4 to the consolidated financial 57,654 52,054 EMEA China Rest of World Total sales Sales are attributed to a geographical segment based on location of the customer. For definitions of segments, please 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. statements. 4 Financial income and financial expenses 27,124 25,124 15,608 12,554 DKK million 2021 2020 12,167 11,208 Interest income relating to subsidiaries 238 263 112,553 100,940 Result of associated company 21 Foreign exchange gain (net) 1,751 Financial gain from forward contracts (net) 2,021 Other financial income 156 109 Total financial income 2,415 2,144 Interest expenses relating to subsidiaries 13 137 Result of associated company 13 Foreign exchange loss (net) 1,978 Financial loss from forward contracts (net) 1,777 Other financial expenses 221 324 Total financial expenses 2,225 2,238

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