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Investor Presentaiton

Novo Nordisk Annual Report 2023 13 Other provisions Provisions for pending litigations are recognised as other provisions. For information on pending litigations, refer to note 3.5 to the consolidated financial statements. Furthermore, as part of normal business Novo Nordisk issues credit notes for expired goods. Consequently, a provision for future returns is made, based on historical product return statistics. 16 Commitments and contingencies DKK million Commitments Leases¹ Research and development obligations Financial statements of the parent company 2023 2022 804 95 18,448 11,778 Research and development - potential milestones² 25,218 6,727 Commercial product launch - potential milestones² Purchase obligations relating to investments in property plant and equipment 11,780 7,746 1,072 232 Purchase obligation relating to contract manufactures 33,107 13,362 2,742 2,533 Guarantees given for subsidiaries³ 35,608 31,858 993 127 14 Related party transactions For information on transactions with related parties, refer to note 5.4 to the consolidated financial statements. The parent company's share of services provided by NNIT Group amounts to DKK 327 million (DKK 578 million in 2022). Novo Nordisk A/S is included in the consolidated financial statements of the Novo Nordisk Foundation. Other purchase obligations 15 Fee to statutory auditors DKK million Statutory audit¹ 2023 2022 9 15 Audit-related services 2 2 Tax advisory services 4 1 Other services 15 9 Total fee to statutory auditors 30 27 1.2022 statutory audit fee includes DKK 6 million of additional fee related to 2021. Other guarantees 1. Lease commitments predominantly relate to estimated variable property taxes and low value assets. 2. Potential milestone payments are associated with uncertainty as they are linked to successful achievements in research activities; refer to note 5.2 to the consolidated financial statements. 3. Guarantees given for subsidiaries mainly relate to guarantees towards Novo Nordisk Finance (Netherlands) B.V. related to issuance of Eurobonds. Novo Nordisk A/S and its Danish subsidiaries are jointly taxed with the Danish companies in Novo Holdings A/S. The joint taxation also covers withholding taxes in the form of dividend tax, royalty tax and interest tax. The Danish companies are jointly and severally liable for the joint taxation. Any subsequent adjustments to income taxes and withholding taxes may lead to a larger liability. The tax for the individual companies is allocated in full on the basis of the expected taxable income. For information on pending litigation and other contingencies, refer to notes 3.5 and 5.2 to the consolidated financial statements. 111
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