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Investor Presentaiton

Novo Nordisk Annual Report 2023 Introducing Novo Nordisk Strategic Aspirations Risks Management Consolidated statements Additional information Impairment test Goodwill and intangible assets with an indefinite useful life and intangible assets not yet available for use are tested for impairment when indicators of impairment exist. However, they are tested at least annually, irrespective of whether there is any indication that they may be impaired. Goodwill is allocated to operating segments based on expected future cash flow from products utilizing the synergies and know-how acquired. Impairment tests are based on Management's projections and anticipated net present value of estimated future cash flows from marketable products. The discount rate used is based on the Group WACC, adjusted where appropriate, to reflect the risk of the specific asset tested. Fair value is determined using largely unobservable inputs. Accordingly, the valuation technique and inputs used to measure fair value are classified as level 3 in the fair value hierarchy. Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Factors considered material that could trigger an impairment test include the following: • • • • . Development of a competing drug Realised sales trending below predicted sales Changes or anticipated changes in participation rates or reimbursement policies Inconsistent or unfavourable clinical readouts Changes in the legal framework covering patents, rights and licences Advances in medicine and/or technology that affect the medical treatments Adverse impact on reputation and/or brand names Changes in the economic lives of similar assets Relationship to other intangible assets or property, plant and equipment If the carrying amount of intangible assets exceeds the recoverable amount based on the existence of one or more of the above indicators of an impairment, any impairment is measured based on discounted projected cash flows. Impairments on intangible assets, other than goodwill, are reviewed at each reporting date for possible reversal. KEY ACCOUNTING ESTIMATES ON INTANGIBLE ASSETS Impairment tests are based on Management's projections and anticipated net present value of estimated future cash flows from marketable products. When collaboration agreements contain elements of acquisition of intangible assets and research and development activities to be performed by the counterpart, Management estimates the allocation of payments that should be deferred to the acquisition of intangible assets and prepaid research and development activities respectively. 3.2 Property, plant and equipment DKK million 2023 Cost at the beginning of the year Additions during the year Disposals during the year Transfer and reclassifications Effect of exchange rate adjustment Cost at the end of the year Land and buildings Assets under Property, plant and equipment Other Plant and machinery equipment construction 43,403 37,548 8,114 22,361 111,426 2,681 47 873 27,830 31,431 (690) (952) (624) (562) (2,828) 4,246 4,679 731 (9,656) (650) (371) (115) (310) (1,446) 48,990 40,951 8,979 39,663 138,583 Depreciation and impairment losses at the beginning of the year 16,781 22,935 5,039 44,755 Depreciation for the year 2,450 1,919 1,086 5,455 Impairment losses for the year 6 118 24 562 710 Depreciation and impairment losses reversed on disposals during the year (664) (942) (597) (562) (2,765) Effect of exchange rate adjustment (248) (196) (89) (533) Depreciation and impairment losses at the end of the year 18,325 23,834 5,463 47,622 Carrying amount at the end of the year 30,665 17,117 3,516 39,663 90,961 2022 Cost at the beginning of the year Additions from acquisition of businesses (note 5.3) Additions during the year Disposals during the year Transfer and reclassifications Effect of exchange rate adjustment Cost at the end of the year 41,076 35,944 7,776 11,091 95,887 297 2 14 313 706 143 645 13,160 14,654 (205) (123) (621) (33) (982) 1,000 1,152 329 (2,481) 529 430 (29) 624 1,554 43,403 37,548 8,114 22,361 Depreciation and impairment losses at the beginning of the year 14,669 21,138 4,718 111,426 40,525 Depreciation for the year 2,245 1,793 916 4,954 Impairment losses for the year 3 10 3 33 49 Depreciation and impairment losses reversed on disposals during the year (188) (123) (615) (33) (959) Effect of exchange rate adjustment 52 117 17 186 Depreciation and impairment losses at the end of the year 16,781 22,935 5,039 44,755 Carrying amount at the end of the year 26,622 14,613 3,075 22,361 66,671 33 63
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