Investor Presentaiton
Investor presentation
Full year 2018
Slide 114
Currency impact on operating profit
EXAMPLE
Operational currency impact
Operational currency impact in 2018
.
The operational currency impact is the difference between e.g. operating
profit growth in reported currency (Danish kroner) and operating profit
growth in local currencies
In 2018 the operating profit was:
In Danish kroner:
In local currencies:
Currency impact:
47,248 million
50,346 million
-3,098 million
Estimation of operational currency impact from key currencies
•
Novo Nordisk guides on currency sensitivity of key currencies in quarterly
announcements
Sensitivity table gives an indication of gain/loss of a 5% immediate change
in exchange rates compared to exchange rates on announcement day
Key currencies account for around 65-85% of the currency exposure
Estimation of operational currency impact from other currencies
Significant changes in other currencies will additionally impact the
operational currency in exposure
In 2018, the depreciation of the ARS and TRY had an additional negative
impact on the operational currency exposure.
Key
currencies
Avg. FX
rate 2017
Avg. FX
rate 2018
%-change
Yearly impact of
5% change²
(mDKK)
Estimated impact
from key
currencies
USD
660
632
-4%
1,900
-1,610
CNY
98
95
-2%
325
-142
JPY
5.9
5.7
-3%
170
-93
GBP
849
842
-1%
90
-13.
CAD
508
488
-4%
80
-65
-1,924
Total estimated currency impact from key currencies in 2018
ARS
0.4
0.2
-40%
TRY
181
134
-26%
INR
10.1
9.2
-9%
RUB
11.3
10.1
-11%
BRL
207
174
-16%
Total currency impact from other currencies in 2018 (residual)
Total currency impact in 2018
1 Yearly impact on operating profit for next 12 months. Estimates reflected in Annual Report 2018; 2 Yearly impact on operating profit for next 12 months as reported in the Annual Report 2017
FX: Foreign exchange
-1,173
-3,098
changing
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