Novo Nordisk Annual Report 2021
Contents
Introducing Novo Nordisk Strategic Aspirations
Key risks
Management
Consolidated statements
Additional information.
Novo Nordisk Annual Report 2021
39
Dividend policy
The company's dividend policy applies a pharmaceutical
industry benchmark to ensure a competitive payout ratio
for dividend payments, which are complemented by share
repurchase programmes. The final dividend for 2020 paid in
March 2021 was equal to DKK 5.85 per A and B share of DKK
0.20 including ADRs. The total dividend for 2020 was DKK 9.10
per A and B share of DKK 0.20, corresponding to a payout ratio
of 50.0%, which was in line with the 2020 pharma peer group
average of 50.6%.
In August 2021, an interim dividend was paid equaling DKK 3.50
per A and B share of DKK 0.20 including ADRs. For 2021, the
Board of Directors will propose a final dividend of DKK 6.90 to
Share price performance 2021
Novo Nordisk share price and indexed peers'
― Novo Nordisk - Pharmaceutical industry index²
OMXC25
DKK
be paid in March 2022, equivalent to a total dividend for 2021
of DKK 10.40 and a payout ratio of 49.6%. The company expects
to distribute an interim dividend in August 2022. Further
information regarding this interim dividend will be announced
in connection with the financial report for the first six months
of 2022. Dividends are paid from distributable reserves. Novo
Nordisk does not pay a dividend on its holding of treasury
shares.
Share repurchase programme for 2021/2022
During the twelve-month period beginning 1 February 2021,
Novo Nordisk repurchased shares worth DKK 20 billion. The
share repurchase programme has primarily been conducted in
accordance with the safe harbour rules in the EU Market Abuse
Regulation (MAR). For the next 12 months, Novo Nordisk has
decided to implement a new share repurchase programme.
The expected total repurchase value of B shares amounts
to a cash value of up to DKK 22 billion. The total programme
may be reduced in size if significant business development
opportunities arise during 2022. Novo Nordisk expects to
conduct the majority of the new share repurchase programme
according to the safe harbour rules defined in MAR. At the
Annual General Meeting in March 2022, the Board of Directors
will propose a further reduction in the company's B share
capital, corresponding to approximately 1.3% of the total share
capital, by cancelling 30,000,000 treasury shares.
Share price development
Novo Nordisk's share price increased by 72.3% during 2021 until
its close on 31 December close of DKK 735.00. The total market
value of Novo Nordisk's B shares, excluding treasury shares and
Novo Holdings A/S shares, was DKK 1,198,745,107,140, as of 31
December 2021.
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1. OMXC25 and pharmaceutical industry development have been rebased to Novo Nordisk share price in January 2021
2. AstraZeneca, Bristol-Myers Squibb, Eli Lilly & Co., Glaxo Smith Kline, Lundbeck, Merck & Co, Novartis AG, Pfizer, Roche, Sanofi-Aventis AG
72.3%
25.5%
17.2%
Strategic Aspirations
2025 Financial
Deliver solid sales and operating profit growth:
Deliver 6-10% sales growth in International Operations
Transform 70% of sales in the US (from 2015 to 2022)
Drive operational efficiencies across the value chain to
enable investments in future growth assets
Deliver free cash flow to enable attractive capital
allocation to shareholdersView entire presentation