Investor Presentaiton
Novo Nordisk Annual Report 2023
Introducing Novo Nordisk
Strategic Aspirations
Risks
Management
Consolidated statements
Additional information
ACCOUNTING POLICIES
The frequency of occupational accidents is measured as the internally reported
number of accidents with absence per million nominal working hours, also referred to
as Lost Time Injury Frequency (LTIF). Contractors, visitors, employees on unpaid leave,
interns and Bachelor's and Master's thesis students are not included. An occupational
accident with absence is any work-related accident causing at least one day of absence
in addition to the day of the accident.
The percentages of employees reporting symptoms of stress and employees reporting
symptoms of work-related physical pain are monitored in the annual employee survey.
In the survey, stress is defined as a situation where the employee feels tense, restless,
nervous or troubled, or unable to sleep at night due to thoughts about their problems.
With reference to symptoms of physical pain, the employee is asked in the survey if
generally their work causes them physical pain.
8.6 US pricing
% change vs prior year
US product portfolio
List price change - Avg.
Net price change - Avg.
US insulin portfolio
List price change - Avg.
Net price change - Avg.
2023
2022
2021
2.8%
(8.2%)
2.4% 1.6%
(10.5%) (12.3%)
0.1%
0.0% 0.0%
(24.4%) (19.5%) (10.9%)
Novo Nordisk has a long history of making products accessible and affordable through
responsible pricing practices and patient access programmes. In 2023, the average net price
of both the US product portfolio and the US insulin portfolio decreased by 8.2% and 24.4%,
respectively, compared to 10.5% and 19.5% in 2022, as a result of enhancements to secure
formulary access for insured patients, as well as the evolution of channel and payer mix.
Novo Nordisk has provided sales discounts and rebates amounting to 74% of US gross
sales in 2023, resulting in the average annual list price across US product portfolio
increasing by 2.8% and the US insulin portfolio by 0.1%.
ACCOUNTING POLICIES
The US product portfolio is inclusive of Diabetes, Obesity and Rare Disease products.
The percentage change represents a sales weighted average list and net price for the
respective year compared to the sales weighted average list and net price for the prior
year, and is not reflective of the magnitude of individual list price actions. The net price
represents the average list price minus rebates, discounts and returns for the specific
product for the year in which it is being calculated.
8.7 Total tax contribution
8.8 Donations and other contributions
19
33
138
126
二 92
DKK million
Taxes
Taxes
borne collected
DKK million
2023
2022
2021
2023
2022
2021
World Diabetes Foundation (WDF)
119
93
92
Corporate income taxes
paid
25,897
6,080
31,977
19,097
18,390
Novo Nordisk Haemophilia Foundation
(NNHF)
Employment taxes
2,666
13,510
16,176
13,006
10,840
Total donations and other contributions
Indirect taxes
2,815
(1,035)
1,780
1,314
-
1,314
3,027
873
2,612
751
32,692
18,555
51,247
36,003
32,593
The WDF, an independent trust, supports sustainable partnerships and acts as a
catalyst to help others do more. The amount granted to WDF has increased to
DKK 119 million in 2023 in accordance with the donation agreement. For more
information, visit: www.worlddiabetesfoundation.org.
Other taxes
Total
In 2023, the total tax contribution amounted to DKK 51,247 million, split across 64% of
taxes borne and 36% of taxes collected. In 2022, the split was 55% of taxes borne and
45% of taxes collected.
The overall increase in total tax contribution from 2022 to 2023 is primarily related
to higher corporate income taxes paid in Denmark due to an increase in the profit
before tax. In addition, the corporate income tax in 2022 reflects the partial refund
of tax prepayment made in 2021. Expansion of production and sales worldwide have
required more employees which has increased the payment of employment taxes
including social security contributions.
ACCOUNTING POLICIES
Novo Nordisk's total tax contribution is measured as the taxes borne or collected by
Novo Nordisk, which have been paid in the respective year. Taxes borne are defined
as taxes where Novo Nordisk carries the cost. Taxes collected are defined as taxes
collected by Novo Nordisk on behalf of others, e.g. employee income taxes deducted
from employee salaries and paid to the government.
Corporate income taxes paid primarily consist of corporate income taxes and
withholding taxes on company dividends paid during the year.
Employment taxes primarily consist of taxes collected from employees on behalf of
the government and social security costs (part of payroll taxes in some countries).
Indirect taxes consist of non-refundable VAT, net VAT collections, customs duties,
environmental taxes and property taxes.
Other taxes consist of country-specific taxes not linked to one of the categories
above, e.g. the US branded prescription drug fee.
The NNHF supports programmes in low- and middle-income countries. Initiatives
focus on capacity-building, diagnosis and registry, awareness and advocacy. The
residual payment for the agreed donation to the NNHF for the year 2022 was made
in 2023, amounting to DKK 13 million. Additionally, in 2023 Novo Nordisk paid DKK 6
million. Since 2005, the NNHF has provided funding for 311 programmes (237 projects
and 74 fellowships) in 87 countries. For additional information, visit: www.nnhf.org.
ACCOUNTING POLICIES
Donations and other contributions by Novo Nordisk to the WDF and the NNHF are
recognised when the donation or contribution is paid out.
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