Investor Presentaiton
Novo Nordisk Annual Report 2023
4.10 Financial income and expenses
Introducing Novo Nordisk Strategic Aspirations
Risks
Management
Consolidated statements
Financial impact from forward contracts, specified
DKK million
2023
2022
2021
DKK million
2023
2022
2021
Financial income
Interest income¹
1,069
239
231
Income/(loss) transferred from other
comprehensive income
1,026
(1,740)
1,802
Foreign exchange gain (net)
308
Realised fair value adjustment of
transferred contracts
214
(3,772)
(1,411)
Financial gain from forward
contracts (net)
1,344
Capital gain on investments
Capital gain on marketable securities
143
Result of associated companies
81
| | | |
2,316
Unrealised fair value adjustments of
forward contracts²
(540)
(1,202)
1,246
340
Realised foreign exchange gain/(loss) on
forward contracts
644
4,948
679
Financial income/(expense) from
Total financial income
2,945
239
2,887
forward contracts
1,344
(1,766)
2,316
Financial expenses
2. Refer to note 4.5 for information on open fair value hedge contracts at 31 December.
Interest expenses on debts and borrowings
542
Foreign exchange loss (net)
378
2,885
289
ACCOUNTING POLICIES
1,972
Financial loss from forward
contracts (net)
1,766
Capital loss on investments.
106
124
Capital loss on marketable securities
463
44
Result of associated companies
189
24
Other financial expenses
197
181
122
Total financial expenses
845
5,986
2,451
1. Interest income include DKK 370 million from marketable securities at fair value through the income
statement (2022: DKK 78 million; 2021: DKK 30 million) while the remaining interest income is derived from
financial assets at amortised cost.
As described in note 4.4, Management has chosen to classify the result of hedging
activities as part of financial items in the income statement, except for foreign
currency-risk cash flow hedges on highly probable non-financial asset purchases
where the cumulative value adjustments are transferred directly from the cash flow
hedge reserve to the initial cost of the asset when recognised.
Financial items primarily relate to foreign exchange elements and are mainly impacted
by the cumulative value adjustment of cash flow hedges transferred from other
comprehensive income to the income statement when the hedged transaction is
recognised in the income statement.
In addition, value adjustments of fair value hedges are recognised in financial income
and financial expenses along with any value adjustments of the hedged asset or
liability that are attributable to the hedged risk.
Additional information.
15
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