Cover
Cover | 12 Months Ended |
Dec. 31, 2020 | |
Cover [Abstract] | |
Entity Registrant Name | NOVO NORDISK A/S |
Entity Address, Country | DK |
Entity Address, Address Line One | Novo Allé |
Entity Address, City or Town | Bagsværd |
Entity Address, Postal Zip Code | DK-2880 |
Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2020 | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | NOVO NORDISK A/S |
Entity Central Index Key | 0000353278 |
Document Type | 6-K |
Document Period End Date | Dec. 31, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Current Fiscal Year End Date | --12-31 |
Amendment Flag | false |
Income statement and statement
Income statement and statement of comprehensive income - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Profit or loss [abstract] | |||
Net sales | kr 126,946 | kr 122,021 | kr 111,831 |
Cost of goods sold | 20,932 | 20,088 | 17,617 |
Gross profit | 106,014 | 101,933 | 94,214 |
Sales and distribution costs | 32,928 | 31,823 | 29,397 |
Research and development costs | 15,462 | 14,220 | 14,805 |
Administrative costs | 3,958 | 4,007 | 3,916 |
Other operating income, net | 460 | 600 | 1,152 |
Operating profit | 54,126 | 52,483 | 47,248 |
Financial income | 1,628 | 65 | 2,122 |
Financial expenses | 2,624 | 3,995 | 1,755 |
Profit before income taxes | 53,130 | 48,553 | 47,615 |
Income taxes | 10,992 | 9,602 | 8,987 |
Net profit | kr 42,138 | kr 38,951 | kr 38,628 |
Earnings per share | |||
Basic earnings per share (DKK per share) | kr 18.05 | kr 16.41 | kr 15.96 |
Diluted earnings per share (DKK per share) | kr 18.01 | kr 16.38 | kr 15.93 |
Income statement and statemen_2
Income statement and statement of comprehensive income - statement of comprehensive income - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of comprehensive income | |||
Net profit | kr 42,138 | kr 38,951 | kr 38,628 |
Items that will not be reclassified subsequently to the income statement: | |||
Remeasurements of retirement benefit obligations | (67) | (187) | 87 |
Items that will be reclassified subsequently to the income statement: | |||
Exchange rate adjustments of investments in subsidiaries | (1,689) | 226 | 491 |
Cash flow hedges: | |||
Realisation of previously deferred (gains)/losses | 329 | 1,677 | (2,027) |
Deferred gains/(losses) incurred during the period | 1,384 | (329) | (1,677) |
Other items | 10 | 9 | (27) |
Tax on other comprehensive income, income/(expense) | (577) | (231) | 755 |
Other comprehensive income, net of tax | (610) | 1,165 | (2,398) |
Total comprehensive income | kr 41,528 | kr 40,116 | kr 36,230 |
Cash flow statement
Cash flow statement - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of cash flows [abstract] | |||
Net profit | kr 42,138 | kr 38,951 | kr 38,628 |
Adjustment of non-cash items: | |||
Income taxes in the income statement | 10,992 | 9,602 | 8,987 |
Depreciation, amortisation and impairment losses | 5,753 | 5,661 | 3,925 |
Other non-cash items | 7,849 | 7,032 | 6,098 |
Change in working capital | (4,353) | (3,388) | (3,370) |
Interest received | 100 | 64 | 51 |
Interest paid | (422) | (204) | (89) |
Income taxes paid | (10,106) | (10,936) | (9,614) |
Net cash generated from operating activities | 51,951 | 46,782 | 44,616 |
Purchase of intangible assets | (16,256) | (2,299) | (2,774) |
Proceeds from sale of property, plant and equipment | 7 | 4 | 13 |
Purchase of property, plant and equipment | (5,825) | (8,932) | (9,636) |
Proceeds from other financial assets | 12 | 148 | 178 |
Purchase of other financial assets | 0 | (350) | (248) |
Investment in associated companies | (392) | (97) | 0 |
Proceeds from the divestment of Group and associated companies | 0 | (3) | 368 |
Dividend received from associated companies | 18 | 20 | 19 |
Net cash used in investing activities | (22,436) | (11,509) | (12,080) |
Purchase of treasury shares | (16,855) | (15,334) | (15,567) |
Dividends paid | (20,121) | (19,409) | (19,048) |
Repayment of borrowings | (950) | (822) | 0 |
Proceeds from borrowings | 5,682 | 81 | 94 |
Net cash used in financing activities | (32,244) | (35,484) | (34,521) |
Net cash generated from activities | (2,729) | (211) | (1,985) |
Cash and cash equivalents at the beginning of the year | 15,411 | 15,629 | 17,158 |
Reclassification of bank overdraft to financing activities | 0 | 0 | 412 |
Exchange gains/(losses) on cash and cash equivalents | (456) | (7) | 44 |
Cash and cash equivalents at the end of the year | kr 12,226 | kr 15,411 | kr 15,629 |
Balance sheet
Balance sheet - DKK (kr) kr in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Intangible assets | kr 20,657 | kr 5,835 |
Property, plant and equipment | 50,269 | 50,551 |
Investments in associated companies | 582 | 474 |
Deferred income tax assets | 5,865 | 4,121 |
Other receivables and prepayments | 674 | 841 |
Other financial assets | 1,066 | 1,334 |
Total non-current assets | 79,113 | 63,156 |
Inventories | 18,536 | 17,641 |
Trade receivables | 27,734 | 24,912 |
Tax receivables | 289 | 806 |
Other receivables and prepayments | 4,161 | 3,434 |
Derivative financial instruments | 2,332 | 188 |
Cash at bank | 12,757 | 15,475 |
Total current assets | 65,809 | 62,456 |
Total assets | 144,922 | 125,612 |
Equity and liabilities | ||
Share capital | 470 | 480 |
Treasury shares | (8) | (10) |
Retained earnings | 63,774 | 57,817 |
Other reserves | (911) | (694) |
Total equity | 63,325 | 57,593 |
Borrowings | 2,897 | 3,009 |
Deferred income tax liabilities | 2,502 | 80 |
Retirement benefit obligations | 1,399 | 1,334 |
Provisions | 4,526 | 4,613 |
Total non-current liabilities | 11,324 | 9,036 |
Borrowings | 7,459 | 1,474 |
Trade payables | 5,717 | 6,358 |
Tax payables | 3,913 | 4,212 |
Other liabilities | 17,005 | 15,085 |
Derivative financial instruments | 1,365 | 734 |
Provisions | 34,814 | 31,120 |
Total current liabilities | 70,273 | 58,983 |
Total liabilities | 81,597 | 68,019 |
Total equity and liabilities | kr 144,922 | kr 125,612 |
Equity statement
Equity statement - DKK (kr) kr in Millions | Total | Share capital | Treasury shares | Retained earnings | Other reserves |
Beginning of the year at Dec. 31, 2017 | kr 49,815 | kr 500 | kr (11) | kr 48,887 | kr 439 |
Net profit | 38,628 | 38,628 | |||
Other comprehensive income | (2,398) | 87 | (2,485) | ||
Total comprehensive income | 36,230 | 38,715 | (2,485) | ||
Transactions with owners: | |||||
Dividends (note 4.1) | (19,048) | (19,048) | |||
Share-based payments (note 5.1) | 414 | 414 | |||
Tax related to restricted stock units (note 2.6) | (5) | (5) | |||
Purchase of treasury shares (note 4.1) | (15,567) | (10) | (15,557) | ||
Reduction of the B share capital (note 4.1) | 0 | (10) | 10 | ||
Dividends (note 4.1) | (19,048) | (19,048) | |||
Share-based payments (note 5.1) | 414 | 414 | |||
Tax related to restricted stock units | 5 | 5 | |||
Purchase of treasury shares (note 4.1) | 15,567 | 10 | 15,557 | ||
Reduction of the B share capital (note 4.1) | 0 | 10 | (10) | ||
Balance at the end of the year at Dec. 31, 2018 | 51,839 | 490 | (11) | 53,406 | (2,046) |
Net profit | 38,951 | 38,951 | |||
Other comprehensive income | 1,165 | (187) | 1,352 | ||
Total comprehensive income | 40,116 | 38,764 | 1,352 | ||
Transactions with owners: | |||||
Dividends (note 4.1) | (19,409) | (19,409) | |||
Share-based payments (note 5.1) | 363 | 363 | |||
Tax related to restricted stock units (note 2.6) | 18 | 18 | |||
Purchase of treasury shares (note 4.1) | (15,334) | (9) | (15,325) | ||
Reduction of the B share capital (note 4.1) | 0 | (10) | 10 | ||
Dividends (note 4.1) | (19,409) | (19,409) | |||
Share-based payments (note 5.1) | 363 | 363 | |||
Tax related to restricted stock units | (18) | (18) | |||
Purchase of treasury shares (note 4.1) | 15,334 | 9 | 15,325 | ||
Reduction of the B share capital (note 4.1) | 0 | 10 | (10) | ||
Balance at the end of the year at Dec. 31, 2019 | 57,593 | 480 | (10) | 57,817 | (694) |
Net profit | 42,138 | 42,138 | |||
Other comprehensive income | (610) | (67) | (543) | ||
Total comprehensive income | 41,528 | 42,071 | (543) | ||
Transfer of cash flow hedge reserve to intangible assets | 326 | 326 | |||
Transactions with owners: | |||||
Dividends (note 4.1) | (20,121) | (20,121) | |||
Share-based payments (note 5.1) | 823 | 823 | |||
Tax related to restricted stock units (note 2.6) | 31 | 31 | |||
Purchase of treasury shares (note 4.1) | (16,855) | (8) | (16,847) | ||
Reduction of the B share capital (note 4.1) | 0 | (10) | 10 | ||
Dividends (note 4.1) | (20,121) | (20,121) | |||
Share-based payments (note 5.1) | 823 | 823 | |||
Tax related to restricted stock units | (31) | (31) | |||
Purchase of treasury shares (note 4.1) | 16,855 | 8 | 16,847 | ||
Reduction of the B share capital (note 4.1) | 0 | 10 | (10) | ||
Balance at the end of the year at Dec. 31, 2020 | kr 63,325 | kr 470 | kr (8) | kr 63,774 | kr (911) |
Basis of preparation
Basis of preparation | 12 Months Ended |
Dec. 31, 2020 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Basis of preparation | Basis of preparation 1.1 Principal accounting policies and key accounting estimates The consolidated financial statements included in this Annual Report have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and in accordance with IFRS as endorsed by the EU and further requirements in the Danish Financial Statements Act. All entities in the Novo Nordisk Group follow the same Group accounting policies. Measurement basis The consolidated financial statements have been prepared on the historical cost basis except for derivative financial instruments, equity investments and trade receivables in a factoring portfolio, which are measured at fair value. Except for the changes described in note 1.2, the principal accounting policies set out below have been applied consistently in the preparation of the consolidated financial statements for all the years presented. The general accounting policies are described in note 5.5. Principal accounting policies Novo Nordisk’s accounting policies are described in each of the individual notes to the consolidated financial statements. Accounting policies listed in the table below are regarded as the principal accounting policies applied by Management. Principal accounting policies Key accounting estimates and judgements Note Estimation risk US net sales and rebates Estimate of US sales deductions and provisions for sales rebates 2.1 High Income taxes and deferred income taxes Judgement and estimate regarding deferred income tax assets and provision for uncertain tax positions 2.6 Medium Intangible assets Estimate regarding impairment of assets and judgement of whether a transaction is an asset acquisition or a business combination 3.1 Low Inventories Estimate of indirect production costs capitalised and inventory write-down 3.3 Low Provisions and contingent liabilities Estimate of ongoing legal disputes, litigation and investigations 3.6 Medium Key accounting estimates and judgements The use of reasonable estimates and judgements is an essential part of the preparation of the consolidated financial statements. Given the uncertainties inherent in Novo Nordisk’s business activities, Management must make certain estimates regarding valuation and make judgements on the reported amounts of assets, liabilities, net sales, expenses and related disclosures. The key accounting estimates identified are those that have a significant risk of resulting in a material adjustment to the measurement of assets and liabilities in the following reporting period. An example being the estimation of US sales deductions and provisions for sales rebates. Management bases its estimates on historical experience and various other assumptions that are held to be reasonable under the circumstances. The estimates and underlying assumptions are reviewed on an ongoing basis. If necessary, changes are recognised in the period in which the estimate is revised. Management considers the key accounting estimates to be reasonable and appropriate based on currently available information. The actual amounts may differ from the amounts estimated as more detailed information becomes available. In addition, Management makes judgements in the process of applying the entity’s accounting policies, for example the classification of a transaction as an asset acquisition or a business combination. Management regards those listed below as the key accounting estimates and judgements used in the preparation of the consolidated financial statements. Please refer to the specific notes for further information on the key accounting estimates and judgements as well as assumptions applied. Applying materiality The consolidated financial statements are a result of processing large numbers of transactions and aggregating those transactions into classes according to their nature or function. The transactions are presented in classes of similar items in the consolidated financial statements. If a line item is not individually material, it is aggregated with other items of a similar nature in the consolidated financial statements or in the notes. Management provides specific disclosures required by IFRS unless the information is not applicable or is considered immaterial to the decision-making of the primary users of these financial statements. 1.2 Changes in accounting policies and disclosures Adoption of new or amended IFRSs Management has assessed the impact of new or amended and revised accounting standards and interpretations (IFRSs) issued by the IASB and IFRSs endorsed by the European Union effective on or after 1 January 2020. The Group adopted the amendments to IFRS 3 for the first time in 2020. The amendments narrow and clarify the definition of a business and permit a simplified assessment of whether an acquired set of activities and assets is a group of assets rather than a business (concentration test). The amendments are applied prospectively to all business combinations and asset acquisitions with an acquisition date on or after 1 January 2020. It is assessed that application of other new amendments effective from 1 January 2020 has not had a material impact on the consolidated financial statements in 2020. Furthermore, Management does not anticipate any significant impact on future periods from the adoption of these new amendments. Adoption of new or amended IFRSs in prior periods As of 1 January 2019, Novo Nordisk applied IFRS 16 'Leases' for the first time. The standard was implemented using the modified retrospective approach. On transition to IFRS 16 the Group recognised an additional DKK 3,778 million of right-of-use assets and DKK 3,988 million of lease liabilities. The implementation did not have any impact on equity. As of 1 January 2018, Novo Nordisk applied IFRS 9 'Financial Instruments' and IFRS 15 'Revenue from contracts with customers' for the first time. The impact of the implementation of IFRS 9 and IFRS 15 was immaterial in relation to recognition and measurement. |
Results for the year
Results for the year | 12 Months Ended |
Dec. 31, 2020 | |
Analysis of income and expense [abstract] | |
Results for the year | Results for the yearNet sales and rebates Gross-to-net sales reconciliation DKK million 2020 2019 2018 Gross sales 298,187 270,431 230,701 US Managed Care and Medicare (96,716) (84,202) (65,207) US wholesaler charge-backs (37,036) (33,772) (29,469) US Medicaid rebates (17,307) (14,365) (11,950) Other US discounts and sales returns (10,867) (8,280) (6,606) Non-US rebates, discounts and sales returns (9,315) (7,791) (5,638) Total gross-to-net sales adjustments (171,241) (148,410) (118,870) Net sales 126,946 122,021 111,831 Provisions for sales rebates DKK million 2020 2019 2018 At the beginning of the year 30,878 25,760 20,374 Additional provisions, including increases to existing provisions 111,921 102,782 82,631 Amount paid during the year (106,116) (98,655) (78,647) Adjustments, including unused amounts reversed during the year 166 381 386 Effect of exchange rate adjustment (2,797) 610 1,016 At the end of the year 34,052 30,878 25,760 Sales discounts and sales rebates are predominantly issued in the US. As such, rebates amount to 74% of gross sales in the US (71% in 2019 and 68% in 2018). Provisions for sales rebates includes US Managed Care, Medicare, Medicaid and other minor US rebate types, as well as rebates in a number of European countries and Canada. Pricing mechanisms in the US market In the US, sales rebates are paid in connection with public healthcare insurance programmes, namely Medicare and Medicaid, as well as rebates to pharmacy benefit managers (PBMs) and managed healthcare plans. Key customers in the US include private payers, PBMs and government payers. PBMs and managed healthcare plans play a role in negotiating price concessions with drug manufacturers for both the commercial and government channels, and determine which drugs are covered on their formularies (or 'preferred drug lists'). US Managed Care and Medicare For Managed Care and Medicare, rebates are offered to a number of PBMs and managed healthcare plans. These rebate programmes allow the customer to receive a rebate after attaining certain performance parameters relating to formulary status or pre-established market shares thresholds. Rebates are estimated according to the specific terms in each agreement, historical experience, anticipated channel mix, growth rates and market share information. Novo Nordisk adjusts the provision periodically to reflect actual sales performance. Managed Care and Medicare rebates are generally settled around 100 days from the transaction date. US wholesaler charge-backs Wholesaler charge-backs relate to contractual arrangements between Novo Nordisk and indirect customers in the US whereby products are sold at contract prices lower than the list price originally charged to wholesalers. A wholesaler charge-back represents the difference between the invoice price to the wholesaler and the indirect customer’s contract price. Accruals are calculated for estimated charge-backs using a combination of factors such as historical experience, current wholesaler inventory levels, contract terms and the value of claims received but not yet processed. Wholesaler charge-backs are generally settled within 30 days after receipt of claim. US Medicaid rebates Medicaid is a government insurance programme. Medicaid rebates have been estimated using a combination of historical experience, product and population growth, price changes, and the impact of contracting strategies. The calculation also involves interpretation of relevant regulations that are subject to changes in interpretative guidance from government authorities. Novo Nordisk adjusts the provision periodically to reflect actual sales performance. Medicaid rebates are generally settled around 150 days from the transaction date. Other US and non-US discounts and sales returns Other discounts are provided to distributors, wholesalers, hospitals, pharmacies, etc. They are usually linked to sales volume or provided as cash discounts. Discounts are calculated based on historical data and recorded as a reduction in gross sales at the time the related sales are recorded. Sales returns relate to damaged or expired products. Other net sales disclosures In 2020, Novo Nordisk had three major wholesalers distributing products in the US, representing 19%, 13% and 12% respectively of total net sales (19%, 14% and 12% in 2019 and 20%, 13% and 13% in 2018). Sales to these three wholesalers are within both Diabetes and Obesity care and Biopharm. Net sales to be recognised from fulfilling existing customer contracts containing fixed or minimum sales volumes, with an original term greater than 12 months, are expected to be DKK 431 million within 12 months (DKK 544 million in 2019) and DKK 216 million thereafter (DKK 32 million in 2019). Novo Nordisk's sales are impacted by exchange rate changes. Refer to note 4.2 for development in key exchange rates. Accounting policies Revenue from sale of goods is recognised when Novo Nordisk has transferred control of products sold to the buyer and it is probable that Novo Nordisk will collect the consideration to which it is entitled for transferring the products. Control of the products is transferred at a point in time, typically on delivery. The amount of sales to be recognised is based on the consideration Novo Nordisk expects to receive in exchange for its goods. When sales are recognised, Novo Nordisk also records estimates for a variety of sales deductions, including product returns as well as rebates and discounts to government agencies, wholesalers, health insurance companies, managed healthcare organisations and retail customers. Sales deductions are recognised as a reduction of gross sales to arrive at net sales, by assessing the expected value of the sales deductions (variable consideration). Where contracts contain customer acceptance criteria, Novo Nordisk recognises sales when the acceptance criteria are satisfied. In some markets, Novo Nordisk sells products on a sale-or-return basis. Where there is historical experience or a reasonably accurate estimate of future returns, estimated product returns are recorded as a reduction in sales. Where shipments of new products are made on a sale-or-return basis, without sufficient historical experience for estimating sales returns, revenue is recorded based on estimated demand and acceptance rates for well-established products with similar market characteristics. If similar market characteristics do not exist, revenue is recorded when there is evidence of consumption or when the right of return has expired. Unsettled rebates are recognised as provisions when the timing or amount is uncertain (note 3.6). Where absolute amounts are known, the rebates are recognised as other liabilities. Wholesaler charge-backs are netted against trade receivable balances. The impact of foreign currency hedging is recognised in the income statement in financial items. Please refer to notes 4.2, 4.3 and 4.9 for more details on hedging. Key accounting estimates of sales deductions and provisions for sales rebates Sales deductions are estimated and provided for at the time the related sales are recorded. These estimates of unsettled rebate, discount and product return obligations require use of significant judgement, as not all conditions are known at the time of sale, for example total sales volume to a given customer. The estimates are based on analyses of existing contractual obligations and historical experience. Provisions are calculated on the basis of a percentage of sales for each product as defined by the contracts with the various customer groups. Provisions for sales rebates are adjusted to actual amounts as rebates, discounts and returns are processed. Novo Nordisk considers the provisions established for sales rebates to be reasonable and appropriate based on currently available information. However, the actual amount of rebates and discounts may differ from the amounts estimated by Management as more detailed information becomes available. Business segments – Key figures Diabetes and Obesity care Biopharm Total DKK million 2020 2019 2018 2020 2019 2018 2020 2019 2018 Total net sales 108,020 102,840 93,904 18,926 19,181 17,927 126,946 122,021 111,831 Cost of goods sold 17,715 16,309 14,716 3,217 3,779 2,901 20,932 20,088 17,617 Sales and distribution costs 29,903 28,729 26,396 3,025 3,094 3,001 32,928 31,823 29,397 Research and development costs 13,535 12,128 12,222 1,927 2,092 2,583 15,462 14,220 14,805 Administrative costs 3,387 3,346 3,266 571 661 650 3,958 4,007 3,916 Other operating income, net 264 309 538 196 291 614 460 600 1,152 Operating profit 43,744 42,637 37,842 10,382 9,846 9,406 54,126 52,483 47,248 Operating margin 40.5 % 41.5 % 40.3 % 54.9 % 51.3 % 52.5 % 42.6 % 43.0 % 42.2 % Depreciation, amortisation and impairment losses expensed 4,624 3,916 3,210 1,129 1,745 715 5,753 5,661 3,925 Novo Nordisk operates in two business segments based on therapies: Diabetes and Obesity care and Biopharm, representing the entirety of the Group's operations. The segments include research, development, manufacturing and marketing of products within the following areas – Diabetes and Obesity care: insulin, GLP-1 and related delivery systems, oral antidiabetic products (OAD), obesity and other serious chronic diseases. – Biopharm: haemophilia, growth disorders and hormone replacement therapy. Segment performance is evaluated on the basis of operating profit, consistent with the consolidated financial statements. Financial income and expenses, and income taxes are managed at Group level and are not allocated to business segments. There are no sales or other transactions between the business segments. Costs have been split between business segments according to a specific allocation. In addition, a small number of corporate overhead costs are allocated systematically between the segments. Other operating income has been allocated to the two segments based on the same principle. Accounting policies Operating segments are reported in a manner consistent with the internal reporting provided to Executive Management and the Board of Directors. We consider Executive Management to be the operating decision-making body, as all significant decisions regarding business development and direction are taken in this forum. Geographical areas Sales to external customers attributed to the US are collectively the most material to the Group. The US and Mainland China are the only territories where sales contribute 10% or more of total net sales. In 2020 Novo Nordisk operated in two main commercial units: – International Operations – EMEA: Europe, the Middle East and Africa. – China: Mainland China, Hong Kong and Taiwan. – Rest of World: All other countries except for North America. – North America Operations (the US and Canada) International Operations was reorganised with effect from 1 April 2020, and the geographical reporting has been amended to reflect the new organisation. Amounts for 2018 and 2019 have been restated. Refer to note 5.6 for an overview of companies in the Novo Nordisk Group based on geographical areas. The country of domicile is Denmark, which is part of EMEA. Denmark is immaterial to Novo Nordisk’s activities in terms of sales as 99.7 % of total sales are realised outside Denmark. Sales are attributed to geographical areas according to the location of the customer. Net sales – Business segments and geographical areas Total International Operations Total North America Operations Total Novo Nordisk Total IO EMEA China Rest of World Total NAO Of which the US DKK million 2020 2019 2018 2020 2019 2018 2020 2019 2018 2020 2019 2018 2020 2019 2018 2020 2019 2018 2020 2019 2018 Diabetes and Obesity care segment: Long-acting insulin 9,959 9,035 7,942 6,451 5,955 5,289 1,471 1,059 814 2,037 2,021 1,839 8,480 11,741 12,902 7,962 11,271 12,600 18,439 20,776 20,844 – of which Tresiba ® 4,407 3,477 2,764 2,574 1,983 1,479 418 87 16 1,415 1,407 1,269 4,561 5,782 5,271 4,191 5,500 5,192 8,968 9,259 8,035 – of which Xultophy ® 1,789 1,493 1,085 1,605 1,407 1,060 1 — — 183 86 25 655 717 529 642 708 528 2,444 2,210 1,614 – of which Levemir ® 3,763 4,065 4,093 2,272 2,565 2,750 1,052 972 798 439 528 545 3,264 5,242 7,102 3,129 5,063 6,880 7,027 9,307 11,195 Premix insulin 10,246 9,707 8,862 2,959 3,160 3,034 4,852 4,306 3,783 2,435 2,241 2,045 679 871 1,332 652 839 1,294 10,925 10,578 10,194 – of which Ryzodeg ® 1,291 993 714 321 237 152 39 4 — 931 752 562 — — — — — — 1,291 993 714 – of which NovoMix ® /NovoLog Mix ® 8,955 8,714 8,148 2,638 2,923 2,882 4,813 4,302 3,783 1,504 1,489 1,483 679 871 1,332 652 839 1,294 9,634 9,585 9,480 Fast-acting insulin 10,808 10,304 9,332 6,584 6,422 5,931 2,075 1,753 1,450 2,149 2,129 1,951 7,505 8,999 10,021 7,101 8,592 9,634 18,313 19,303 19,353 – of which Fiasp ® 832 617 357 764 585 357 — — — 68 32 — 553 626 233 519 597 211 1,385 1,243 590 – of which NovoRapid ® /NovoLog ® 9,976 9,687 8,975 5,820 5,837 5,574 2,075 1,753 1,450 2,081 2,097 1,951 6,952 8,373 9,788 6,582 7,995 9,423 16,928 18,060 18,763 Human insulin 7,339 7,361 7,348 2,370 2,438 2,592 2,655 2,847 2,821 2,314 2,076 1,935 1,534 1,675 1,917 1,431 1,552 1,778 8,873 9,036 9,265 Total insulin 38,352 36,407 33,484 18,364 17,975 16,846 11,053 9,965 8,868 8,935 8,467 7,770 18,198 23,286 26,172 17,146 22,254 25,306 56,550 59,693 59,656 Victoza ® 7,095 7,249 6,240 4,251 4,713 4,337 1,033 898 521 1,811 1,638 1,382 11,652 14,685 18,093 11,292 14,217 17,561 18,747 21,934 24,333 Ozempic ® 3,634 1,143 39 3,112 969 39 10 — — 512 174 — 17,577 10,094 1,757 16,650 9,599 1,634 21,211 11,237 1,796 Rybelsus ® 36 — — 36 — — — — — — — — 1,837 50 — 1,826 50 — 1,873 50 — Total GLP-1 10,765 8,392 6,279 7,399 5,682 4,376 1,043 898 521 2,323 1,812 1,382 31,066 24,829 19,850 29,768 23,866 19,195 41,831 33,221 26,129 Other Diabetes care 2,946 3,389 3,360 725 1,052 1,064 1,546 1,647 1,672 675 690 624 1,085 858 890 943 705 733 4,031 4,247 4,250 Total Diabetes care 52,063 48,188 43,123 26,488 24,709 22,286 13,642 12,510 11,061 11,933 10,969 9,776 50,349 48,973 46,912 47,857 46,825 45,234 102,412 97,161 90,035 Obesity care (Saxenda ® ) 2,118 2,083 1,211 1,124 981 547 10 9 1 984 1,093 663 3,490 3,596 2,658 3,230 3,348 2,446 5,608 5,679 3,869 Diabetes and Obesity care total 54,181 50,271 44,334 27,612 25,690 22,833 13,652 12,519 11,062 12,917 12,062 10,439 53,839 52,569 49,570 51,087 50,173 47,680 108,020 102,840 93,904 Biopharm segment: Haemophilia 5,708 5,946 5,572 3,579 3,646 3,604 361 284 199 1,768 2,016 1,769 3,954 4,335 4,004 3,675 4,031 3,723 9,662 10,281 9,576 – of which NovoSeven ® 3,996 4,502 4,424 2,352 2,577 2,694 345 269 194 1,299 1,656 1,536 3,207 3,617 3,457 3,089 3,454 3,278 7,203 8,119 7,881 – of which NovoEight ® 1,127 1,143 1,046 790 844 836 16 15 5 321 284 205 335 382 308 312 358 291 1,462 1,525 1,354 Growth disorders (Norditropin ® ) 4,832 4,225 4,000 2,220 1,960 1,972 66 36 20 2,546 2,229 2,008 2,872 3,050 2,834 2,854 3,035 2,823 7,704 7,275 6,834 Other Biopharm 1,108 1,122 1,017 886 912 817 5 5 4 217 205 196 452 503 500 208 247 262 1,560 1,625 1,517 Biopharm total 11,648 11,293 10,589 6,685 6,518 6,393 432 325 223 4,531 4,450 3,973 7,278 7,888 7,338 6,737 7,313 6,808 18,926 19,181 17,927 Total sales by geographical area 65,829 61,564 54,923 34,297 32,208 29,226 14,084 12,844 11,285 17,448 16,512 14,412 61,117 60,457 56,908 57,824 57,486 54,488 126,946 122,021 111,831 Total sales growth as reported 6.9 % 12.1 % 2.3 % 6.5 % 10.2 % 2.5 % 9.7 % 13.8 % 5.4 % 5.7 % 14.6 % (0.3 %) 1.1 % 6.2 % (1.9 %) 0.6 % 5.5 % (2.4 %) 4.0 % 9.1 % 0.1 % DKK million 2020 2019 2018 Employee costs (note 2.4) 6,269 5,968 6,288 Amortisation and impairment losses, intangible assets (note 3.1) 1,025 522 769 Depreciation and impairment losses, property, plant and equipment (note 3.1) 724 783 468 Other research and 7,444 6,947 7,280 Total research and development costs 15,462 14,220 14,805 As percentage of net sales 12.2 % 11.7 % 13.2 % Novo Nordisk’s research and development is mainly focused on: – Insulins, GLP-1s and other therapeutic new antidiabetic drugs for diabetes treatment. – GLP-1s, combinations and new modes of action for Obesity care. – Blood-clotting factors and new modes of action for treatment of haemophilia and other rare blood disorders. – Human growth hormone and new modes of action for treatment of growth disorders and other rare endocrine disorders. – New modes of action including GLP-1 and stem cells for treatment of NASH, cardiovascular disease, Alzheimer's disease, chronic kidney disease and Parkinson's disease, among others. The research activities mainly utilise biotechnological methods based on advanced protein chemistry and protein engineering. These methods have played a key role in the development of the production technology used to manufacture insulin, GLP-1, recombinant blood-clotting factors and human growth hormone. Research activities further focus on new technology platforms including stem cells and developing RNAi therapies for liver-related cardio-metabolic diseases. Research and development activities are carried out by Novo Nordisk’s research and development centres, mainly in Denmark, the US, the UK and China. Clinical trials are carried out all over the world. Novo Nordisk also enters into partnerships and licence agreements. Accounting policies Novo Nordisk expenses all research costs. In line with industry practice, internal and subcontracted development costs are also expensed as they are incurred, due to significant regulatory uncertainties and other uncertainties inherent in the development of new products. This means that they do not qualify for capitalisation as intangible assets until marketing approval by a regulatory authority is obtained or considered highly probable. Costs for post-approval activities that are required by authorities as a condition for obtaining regulatory approval are recognised as research and development costs. Research and development costs primarily comprise employee costs, and internal and external costs related to execution of studies, including manufacturing costs and facility costs of the research centres. The costs also comprise amortisation, depreciation and impairment losses related to software and property, plant and equipment used in the research and development activities. Impairment losses recognised on intangible assets not yet available for use related to research and development projects are presented in research and development costs. Certain research and development activities are recognised outside research and development costs: – Royalty expenses paid to partners after regulatory approval are expensed as cost of goods sold. – Royalty income received from partners is recognised as part of other operating income, net. – Contractual research and development obligations to be paid in the future are disclosed separately as commitments in note 5.2. DKK million 2020 2019 2018 Wages and salaries 26,778 25,335 25,259 Share-based payment costs (note 5.1) 823 363 414 Pensions – defined contribution plans 1,961 1,910 1,791 Pensions – defined benefit plans (note 3.5) 138 151 73 Other social security contributions 1,862 1,963 1,901 Other employee costs 2,044 2,203 2,087 Total employee costs for the year 33,606 31,925 31,525 Employee costs capitalised as intangible assets and property, plant and equipment (1,279) (1,314) (1,500) Change in employee costs capitalised as inventories (60) (139) (105) Total employee costs 32,267 30,472 29,920 Included in the income statement: Cost of goods sold 8,896 8,134 8,164 Sales and distribution costs 14,146 13,463 12,214 Research and development costs 6,269 5,968 6,288 Administrative costs 2,848 2,679 2,755 Other operating income, net 108 228 499 Total employee costs in the 32,267 30,472 29,920 Number of employees 2020 2019 2018 Average number of 43,759 42,218 42,881 Year-end number of 44,723 42,703 42,672 Employees (total) 45,323 43,258 43,202 Remuneration to Executive Management and Board of Directors DKK million 2020 2019 2018 Salary and short-term incentive 119 120 102 Pension 26 26 22 Benefits 10 14 4 Long-term incentive 1 52 40 22 Severance payments — — 28 Executive Management in total 2 207 200 178 Fee to Board of Directors 2 17 19 17 Total 224 219 195 1. Please refer to note 5.1 for further information. 2. Total remuneration for registered members of Executive Management amounts to DKK 141 million (DKK 135 million in 2019 and DKK 142 million in 2018). All members of the Board of Directors are registered. Accounting policies Wages, salaries, social security contributions, annual leave and sick leave, bonuses and non-monetary benefits are recognised in the year in which the associated services are rendered by employees of Novo Nordisk. Where Novo Nordisk provides long-term employee benefits, the costs are accrued to match the rendering of the services by the employees concerned. Accounting policies Other operating income, net, comprises licence income and income of a secondary nature in relation to the main activities of Novo Nordisk. Licence income from royalties on net sales is recognised as the underlying customers' sale occurs and from sales milestones once the contingent sale milestone is achieved in accordance with the terms of the relevant agreement. Income from the transfer of the right to use intellectual property may contain development or regulatory milestones (variable consideration) on which the income is recognised when the significant uncertainties in achieving the milestones are resolved, due to the significant uncertainties inherent in the development of pharmaceutical products. Operating profit from the wholly owned subsidiary NNE A/S, not related to Novo Nordisk’s main activities, is recognised as other operating income. Other operating income also includes income from sale of intellectual property rights. Income taxes expensed DKK million 2020 2019 2018 Current tax on profit for the year 11,557 11,275 10,469 Deferred tax on profit for the year 1,105 (1,559) (1,007) Tax on profit for the year 12,662 9,716 9,462 Current tax adjustments recognised for prior years (563) (191) (522) Deferred tax adjustments recognised for prior years (1,107) 77 47 Income taxes in the 10,992 9,602 8,987 Tax on other comprehensive 577 231 (755) Computation of effective tax rate DKK million 2020 2019 2018 Statutory corporate income tax rate in Denmark 22.0 % 22.0 % 22.0 % Deviation in foreign subsidiaries’ tax rates compared to the Danish tax rate (net) (2.5 %) (2.1 %) (1.9 %) Non-taxable income less non-tax-deductible expenses (net) (0.2 %) 0.1 % (0.2 %) Other adjustments (net) 1.4 % (0.2 %) (1.0 %) Effective tax rate 20.7 % 19.8 % 18.9 % The deviation in foreign subsidiaries' tax rates from the Danish tax rate is mainly driven by Swiss business activities. Other adjustments in 2020 comprise of tax related to acquisitions and subsequent transfers of intellectual property rights (around 4%) countered by clarification of tax uncertainties, settlement of tax cases and adjustment of prior years. Income taxes paid DKK million 2020 2019 2018 Income taxes paid in Denmark for current year 4,262 7,774 6,640 Income taxes paid outside Denmark for current year 4,508 2,258 2,376 Income taxes paid/repayments relating to prior years 1,336 904 598 Income taxes paid 10,106 10,936 9,614 In 2020, income taxes paid in Denmark and paid outside Denmark are impacted by transfers of intellectual property rights related to acquisitions. Swiss tax reform In 2019, a tax reform was passed in Switzerland. The tax reform has a minor positive impact on the effective tax rate, driven by a non-recurring increase to deferred tax assets. Accounting policies The tax expense for the period comprises current and deferred tax. It also includes adjustments to previous years and changes in provisions for uncertain tax positions. Tax is recognised in the income statement except to the extent that it relates to items recognised in equity or other comprehensive income. Provisions for ongoing tax disputes are included as part of deferred tax assets, tax receivables and tax payables. Deferred income taxes arise from temporary differences between the accounting and tax values of the individual consolidated companies and from realisable tax loss carry-forwards. The tax value of tax loss carry-forwards is included in deferred tax assets to the extent that these are expected to be utilised in future taxable income. The deferred income taxes are measured according to current tax rules and at the tax rates assumed in the year in which the assets are expected to be utilised. In general, the Danish tax rules related to dividends from group companies provide exemption from tax for most repatriated profits. A provision for withholding tax is only recognised if a concrete distribution of dividends is planned. The unrecognised potential withholding tax amounts to DKK 337 million (DKK 315 million in 2019). The value of future tax deductions in relation to share programmes is recognised as deferred tax, until the shares are paid out to the employees. Any estimated excess tax deduction compared to the costs realised in the income statement is charged to equity. Management judgement regarding recognition of deferred income tax assets and provisions for uncertain tax positions Novo Nordisk is subject to income taxes around the world. Significant judgement and estimates are required in determining the worldwide accrual for income taxes, deferred income tax assets and liabilities, and provisions for uncertain tax positions. Novo Nordisk recognises deferred income tax assets if it is probable that sufficient taxable income will be available in the future, against which the temporary differences and unused tax losses can be utilised. Management has considered future taxable income and applied its judgement in assessing whether deferred income tax assets should be recognised. In the course of conducting business globally, tax and transfer pricing disputes with tax authorities may occur. Management judgement is applied to assess the possible outcome of such disputes. The 'most probable outcome' method is applied when making provisions for uncertain tax positions, and Novo Nordisk considers the provisions made to be adequate. However, the actual obligation may deviate and depends on the result of litigation and settlements with the relevant tax authorities. Development in deferred income tax assets and liabilities DKK million Property, Intangible Inventories Other Offset Total 2020 Net deferred tax asset/(liability) at 1 January (1,591) (718) 1,811 3,452 1,087 — 4,041 Income/(charge) to the income statement (47) (2,883) 963 1,449 520 2 Income/(charge) to other comprehensive income — 92 (216) 16 (469) (577) Income/(charge) to equity — (92) — — 20 (72) Acquisition of subsidiaries — — — — 276 276 Effect of exchange rate adjustment 24 1 (2) (300) (30) (307) Net deferred tax asset/(liability) at 31 December (1,614) (3,600) 2,556 4,617 1,404 — 3,363 Classified as follows: Deferred tax asset at 31 December 755 46 2,568 4,895 2,903 (5,302) 5,865 Deferred tax liability at 31 December (2,369) (3,646) (12) (278) (1,499) 5,302 (2,502) 2019 Net deferred tax asset/(liability) at 1 January (703) (564) 973 2,402 667 — 2,775 Change in accounting policy, leases (865) — — 865 — — Income/(charge) to the income statement (5) (155) 820 133 689 1,482 Income/(charge) to other comprehensive income — — 18 47 (296) (231) Income/(charge) to equity — — — — 18 18 Disposal of subsidiaries — — — (18) — (18) Effect of exchange rate adjustment (18) 1 — 23 9 15 Net deferred tax asset/(liability) at 31 December (1,591) (718) 1,811 3,452 1,087 — 4,041 Classified as follows: Deferred tax asset at 31 December 769 58 3,428 3,580 1,843 (5,557) 4,121 Deferred tax liability at 31 December (2,360) (776) (1,617) (128) (756) 5,557 (80) The total tax value of unrecognised tax loss carry-forwards amounts to DKK 628 million in 2020 (DKK 144 million in 2019). |
Operating assets and liabilitie
Operating assets and liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Operating assets and liabilities | Section 3 DKK million Patents and licences Software and other intangibles Total intangible assets Land and buildings Plant and machinery Other equipment Assets Property, plant and equipment 2020 Cost at the beginning of the year 7,270 2,560 9,830 30,260 27,594 6,215 20,351 84,420 Additions during the year 15,906 396 16,302 741 506 490 4,560 6,297 Disposals during the year (698) — (698) (119) (583) (122) (16) (840) Transfer and reclassifications — — — 7,440 4,586 515 (12,541) — Effect of exchange rate adjustment (74) (20) (94) (813) (600) (222) (1,556) (3,191) Cost at the end of the year 22,404 2,936 25,340 37,509 31,503 6,876 10,798 86,686 Amortisation/depreciation and impairment losses at the beginning of the year 2,643 1,352 3,995 11,528 18,888 3,453 — 33,869 Amortisation/depreciation for the year 889 207 1,096 1,859 1,500 821 — 4,180 Impairment losses for the year 350 — 350 14 69 28 16 127 Amortisation/depreciation and impairment losses reversed on disposals during the year (698) — (698) (119) (581) (115) (16) (831) Effect of exchange rate adjustment (49) (11) (60) (346) (432) (150) — (928) Amortisation/depreciation and impairment losses at the end of the year 3,135 1,548 4,683 12,936 19,444 4,037 — 36,417 Carrying amount at the end of the year 19,269 1,388 20,657 24,573 12,059 2,839 10,798 50,269 2019 Cost at the beginning of the year 5,247 2,412 7,659 25,401 25,412 4,779 16,846 72,438 Change in accounting policy, leases — — — 3,291 — 487 — 3,778 Additions during the year 1,958 221 2,179 555 350 498 7,580 8,983 Disposals during the year — (79) (79) (407) (504) (244) (74) (1,229) Transfer and reclassifications — — — 1,277 2,248 665 (4,190) — Effect of exchange rate adjustment 65 6 71 143 88 30 189 450 Cost at the end of the year 7,270 2,560 9,830 30,260 27,594 6,215 20,351 84,420 Amortisation/depreciation and impairment losses at the beginning of the year 1,390 1,124 2,514 9,770 17,871 2,906 — 30,547 Amortisation/depreciation for the year 312 175 487 1,818 1,410 743 — 3,971 Impairment losses for the year 914 68 982 57 70 20 74 221 Amortisation/depreciation and impairment losses reversed on disposals during the year — (18) (18) (160) (504) (229) (74) (967) Effect of exchange rate adjustment 27 3 30 43 41 13 — 97 Amortisation and impairment losses at the end of the year 2,643 1,352 3,995 11,528 18,888 3,453 — 33,869 Carrying amount at the end of the year 4,627 1,208 5,835 18,732 8,706 2,762 20,351 50,551 Intangible assets Amortisation and impairment losses DKK million 2020 2019 2018 Cost of goods sold 369 916 208 Sales and distribution costs 40 24 15 Research and development costs 1,025 522 769 Administrative costs 10 3 2 Other operating income, net 2 4 6 Total amortisation and impairment loss 1,446 1,469 1,000 Total amortisation 1,096 487 1,000 Total impairment losses 350 982 — 2020 additions In 2020 Novo Nordisk acquired Corvidia Therapeutics Inc., in a transaction accounted for as an asset acquisition. An addition of DKK 4,580 million was recognised in patents and licences for the acquisition of Ziltivekimab, a fully human monoclonal antibody directed against Interleukin-6 related to chronic kidney disease, which is under development. Novo Nordisk acquired Emisphere Technologies Inc. and obtained ownership of the Eligen ® SNAC oral delivery technology. Novo Nordisk and Emisphere have collaborated since 2007 and Emisphere’s proprietary drug delivery technology Eligen ® SNAC is used by Novo Nordisk under an existing licence agreement in the oral formulation of Novo Nordisk’s GLP-1 receptor agonist semaglutide, which is marketed and sold under the brand name Rybelsus ® . Under the terms of the agreement, Novo Nordisk acquired all outstanding shares of Emisphere for USD 1,335 million. As part of the transaction, Novo Nordisk also acquired related Eligen ® SNAC royalty stream obligations owed to MHR Fund Management LLC (MHR), the largest shareholder of Emisphere, for USD 450 million. The transaction has been accounted for as an asset acquisition, with DKK 11,060 million recognised in patents and licences, of which DKK 2,467 million are related to assets under development. At 31 December 2020, the carrying amount of acquired intangible assets related to Rybelsus is DKK 7,716 million, which has a remaining amortisation period of 14 years. Of the total addition of intangible assets in 2020 DKK 396 million is internally developed (DKK 221 million in 2019). Accounting policies Patents and licences, including patents and licences acquired for research and development projects, are carried at historical cost less accumulated amortisation and any impairment loss. Upfront fees and acquisition costs are capitalised and subsequent milestone payments payable on achievement of a contingent event will be capitalised on the contingent event being probable of being achieved. Amortisation is based on the straight-line method over the estimated useful life. This means the legal duration or the economic useful life depending on which is shorter, and not exceeding 15 years. The amortisation of patents and licences begins after regulatory approval has been obtained. Internal development of software for internal use are recognised as intangible assets if the recognition criteria are met, for example a significant business system where the expenditure leads to the creation of a durable asset. Amortisation is based on the straight-line method over the estimated useful life of 3-15 years. The amortisation begins when the asset is in the location and condition necessary for it to be capable of operating in the manner intended by Management. Research and development projects Internal and subcontracted research costs are charged in full to the consolidated income statement in the period in which they are incurred. Consistent with industry practice, development costs are also expensed until regulatory approval is obtained or is probable; please refer to note 2.3. Payments to third parties under collaboration and licence agreements are assessed for the substance of their nature. Payments which represent subcontracted research and development are expensed as the services are received. Payments which represent rights to the transfer of intellectual property, developed at risk by the third party, are capitalised. For acquired research and development projects, patents and licences, the likelihood of obtaining future commercial sales is reflected in the cost of the asset, and thus the probability recognition criteria is always considered to be satisfied. As the cost of acquired research and development projects can often be measured reliably, these projects fulfil the capitalisation criteria as intangible assets on acquisition. Subsequent milestone payments payable on achievement of a contingent event (e.g. commencement of phase 3 trials) are accrued and capitalised into the cost of the intangible asset when the achievement of the event is probable. Development costs incurred subsequent to acquisition are treated consistently with internal project development costs. 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. – Changes in the legal framework covering patents, rights and licences – Advances in medicine and/or technology that affect the medical treatments. – Lower-than-predicted sales. – 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 – Changes or anticipated changes in participation rates or reimbursement policies. If the carrying amount of intangible assets exceeds the recoverable amount based on the existence of one or more of the above indicators of impairment, any impairment is measured based on discounted projected cash flows. Impairments are reviewed at each reporting date for possible reversal. Key accounting estimates and judgements on intangible assets In 2020, an impairment loss of DKK 350 million (DKK 982 million in 2019) was recognised, substantially all of which related to patents and licences. DKK 350 million (DKK 282 million in 2019) of the impairment was related to the Diabetes and Obesity care segment and none related to Biopharm (DKK 700 million in 2019). All the impairment loss in 2020 was recognised in research and development costs (DKK 529 million in cost of goods sold and DKK 450 million in research and development costs in 2019). The impairment was a result of Management’s review of expectations related to patents and licences not yet in use. No impairment related to marketable products was identified in 2020. Intangible assets with an indefinite useful life and intangible assets not yet available for use are not subject to amortisation. They are tested annually for impairment, irrespective of whether there is any indication that they may be impaired. Intangible assets not yet being amortised amounts to DKK 9,607 million (DKK 3,380 million in 2019), primarily patents and licences in relation to research and development projects. Impairment tests in 2020 and 2019 of patents and licences not yet in use are based on Management’s projections and anticipated net present value of estimated future cash flows from marketable products. Terminal values used are based on the expected life of products, forecasted life cycle and cash flow over that period, and the useful life of the underlying assets. In addition, Management makes judgements related to intangible assets when assessing whether a transaction is a business combination or an asset acquisition. An asset acquisition will arise when substantially all the transaction value is concentrated in a single asset or when there are no substantive business processes in the acquired entity. Judgements are also made in evaluating whether payments under collaboration arrangements are acquisition of assets or prepayment of R&D services. Property, plant and equipment Depreciation and impairment losses DKK million 2020 2019 2018 Cost of goods sold 2,729 2,656 2,312 Sales and distribution costs 403 354 69 Research and development costs 724 783 468 Administrative costs 433 376 70 Other operating income, net 18 23 6 Total depreciation and impairment losses 4,307 4,192 2,925 Capital expenditure in the reporting period was primarily related to investments in facility upgrades and new production facilities for active pharmaceutical ingredients for diabetes, mainly the facility in Clayton, US. The facility in Clayton is intended to strengthen the Novo Nordisk supply chain. Capital expenditure also related to investments in facility upgrades of the purification plant in Kalundborg and investments were also made to establish additional API capacity in Kalundborg. Finally, capital expenditure related to the establishment of an oral tablet facility near Durham, US for launch and commercial manufacturing of tablets. Accounting policies Property, plant and equipment is measured at historical cost less accumulated depreciation and any impairment loss. The cost of self-constructed assets includes costs directly and indirectly attributable to the construction of the assets. Any subsequent cost is included in the asset’s carrying amount or recognised as a separate asset only when it is probable that future economic benefits associated with the item will flow to Novo Nordisk and the cost of the item can be measured reliably. Depreciation is based on the straight-line method over the estimated useful lives of the assets (buildings: 12-50 years, plant and machinery: 5-25 years and other equipment: 3-10 years. Land is not depreciated). The depreciation commences when the asset is available for use, i.e. when it is in the location and condition necessary for it to be capable of operating in the manner intended by Management. The assets’ residual values and useful lives are reviewed and adjusted, if appropriate, at the end of each reporting period. If an asset’s carrying amount is higher than its estimated recoverable amount, it is written down to the recoverable amount. Plant and equipment with no alternative use developed as part of a research and development project are expensed. However, plant and equipment with an alternative use or used for general research and development purposes are capitalised and depreciated over the estimated useful life as research and development costs. 3.2 Leases Right-of-use assets in the balance sheet DKK million Land and buildings Other equipment Total 2020 Balance at 1 January 3,029 503 3,532 Additions during the year 660 318 978 Depreciation for the year (644) (320) (964) Effect of exchange rate adjustment (144) (22) (166) Balance at 31 December 2,901 479 3,380 2019 Balance at 1 January 3,291 487 3,778 Additions during the year 333 307 640 Depreciation for the year (564) (288) (852) Effect of exchange rate adjustment (31) (3) (34) Balance at 31 December 3,029 503 3,532 Amounts recognised in the income statement DKK million 2020 2019 Depreciation 964 852 Interest on lease liabilities 97 108 Variable lease expenses 135 113 Short-term leases 98 201 Lease of low value assets 79 63 Total amounts recognised in the 1,373 1,337 In 2020 the total cash outflow for leases amounted to DKK 1,367 million (DKK 1,295 million in 2019). Please refer to note 4.4 for a maturity analysis of lease payments. The lease costs for 2018 were DKK 1,299 million. Accounting policies Novo Nordisk mainly leases office buildings, warehouses, laboratories and vehicles. The right-of-use asset is presented in property, plant and equipment and the lease liability in borrowings. For contracts which are, or contain, a lease, the Group recognises a right-of-use asset and a lease liability. The right-of-use asset is initially measured at cost, being the initial amount of the lease liability. The right-of-use asset is subsequently depreciated using the straight-line method over the lease term. The right-of-use asset is periodically adjusted for certain remeasurements of the lease liability and reduced by any impairment losses. The lease term determined by the Group is the non-cancellable period of a lease, together with extension/termination option if these are reasonably certain to be exercised. When determining the term, Management considers multiple factors that create economic incentives to exercise an option to extend the lease or not to terminate the lease, including termination penalties, potential relocation costs and whether significant leasehold improvements have been capitalised on the lease, with a remaining useful life which exceeds the fixed minimum duration of the lease. For contracts with a rolling term (evergreen leases), the Group estimates the leasing period to be equal to the termination period if no probable scenario exists for estimating the leasing period. The lease liability is initially measured at the present value of the lease payments outstanding at the commencement date, discounted using the incremental borrowing rate. The lease liability is measured using the effective interest method. Variable lease payments not based on an index or a rate are recognised as an expense in the income statement as incurred. Residual value guarantees that are expected to be paid are included in the initial measurement of the lease liability. The lease liability is remeasured when there is a change in future lease payments, typically due to a change in index or rate (e.g. inflation) on property leases, or if there is a reassessment of whether an extension or termination option will be exercised. A corresponding adjustment is made to the right-of-use asset, or in the income statement when the right-of-use asset has been fully depreciated. New lease contracts with a lease term of 12 months or less and lease of low value assets are not recognised on the balance sheet. These are expensed on a straight-line basis over the lease term or another systematic basis. Lease of low value assets include personal computers, telephones and small items of office equipment. As of 31 December 2020, the lease liability excludes DKK 2,363 million (undiscounted) of potential lease payments related to lease term extension rights on properties which were not considered reasonably certain to be exercised (DKK 2,760 million in 2019). 3.3 Inventories DKK million 2020 2019 Raw materials 3,326 2,842 Work in progress 12,252 11,375 Finished goods 5,111 4,850 Total inventories (gross) 20,689 19,067 Write-downs at year-end (2,153) (1,426) Total inventories (net) 18,536 17,641 Indirect production costs included in work in 9,703 9,216 Share of total inventories (net) 52 % 52 % Movements in inventory write-downs: Write-downs at the beginning of the year 1,426 1,959 Write-downs during the year 1,628 414 Utilisation of write-downs (528) (68) Reversal of write-downs (373) (879) Write-downs at the end of the year 2,153 1,426 All write-downs in both 2020 and 2019 relate to fully impaired inventory. In 2019 a reversal of write-down on prelaunch inventory with a net positive income statement effect of DKK 510 million on research and development costs was recognised. Accounting policies Inventories are stated at cost or net realisable value, whichever is lower. Cost is determined using the first-in, first-out method. Cost comprises direct production costs such as raw materials, consumables and labour as well as indirect production costs. Production costs for work in progress and finished goods include indirect production costs such as employee costs, depreciation, maintenance, etc. If the expected sales price less completion costs to execute sales (net realisable value) is lower than the carrying amount, a write-down is recognised for the amount by which the carrying amount exceeds its net realisable value. Inventory manufactured prior to regulatory approval (prelaunch inventory) is capitalised but immediately provided for, until there is a high probability of regulatory approval for the product. A write-down is made against inventory, and the cost is recognised in the income statement as research and development costs. Once there is a high probability of regulatory approval being obtained, the write-down is reversed, up to no more than the original cost. Key accounting estimate of indirect production costs capitalised and inventory write-downs Indirect production costs account for approximately 50% of the net inventory value, reflecting a lengthy production process compared with low direct raw material costs. The production of both Diabetes and Obesity care and Biopharm products is highly complex from fermentation to purification and formulation, including quality control of all production processes. Furthermore, the process is very sensitive to manufacturing conditions. These factors all influence the parameters for capitalisation of indirect production costs at Novo Nordisk and the full cost of the products. Indirect production costs are measured using a standard cost method. This is reviewed regularly to ensure relevant measures of capacity utilisation, production lead time, cost base and other relevant factors, hence inventory is valued at actual cost. When calculating total inventory, Management must make judgements about cost of production, standard cost variances and idle capacity in estimating indirect production costs for capitalisation. Changes in the parameters for calculation of indirect production costs could have an impact on the gross margin and the overall valuation of inventories. 3.4 Trade receivables DKK million Gross carrying amount Loss allowance Net carrying amount 2020 Not yet due 27,511 (805) 26,706 1-90 days 1,000 (112) 888 91-180 days 188 (63) 125 181-270 days 44 (29) 15 271-360 days 51 (51) — More than 360 days past due 320 (320) — Trade receivables 29,114 (1,380) 27,734 EMEA 6,306 (781) 5,525 China 2,137 — 2,137 Rest of World 3,003 (580) 2,423 North America Operations 17,668 (19) 17,649 Trade receivables 29,114 (1,380) 27,734 2019 Not yet due 24,359 (763) 23,596 1-90 days 1,204 (127) 1,077 91-180 days 261 (69) 192 181-270 days 96 (49) 47 271-360 days 79 (79) — More than 360 days past due 397 (397) — Trade receivables 26,396 (1,484) 24,912 EMEA 7,104 (903) 6,201 China 1,760 — 1,760 Rest of World 3,084 (568) 2,516 North America Operations 14,448 (13) 14,435 Trade receivables 26,396 (1,484) 24,912 Movements in allowance for doubtful trade receivables DKK million 2020 2019 Carrying amount at the beginning of the year 1,484 1,370 Reversal of allowance on realised losses (108) (45) Net movement recognised in income statement 139 158 Effect of exchange rate adjustment (135) 1 Allowance at the end of the year 1,380 1,484 Novo Nordisk closely monitors the current economic conditions of countries impacted by currency fluctuations, high inflation and an unstable political climate. These indicators as well as payment history are taken into account in the valuation of trade receivables. During 2020 country risk ratings have been downgraded in a number of countries. However, despite of the COVID-19 pandemic, Novo Nordisk has not experienced significant increases in collectability issues on individual customers nor have we experienced significant deterioration in the ageing of receivables. Please refer to note 4.2 for the trade receivable programmes. Accounting policies Trade receivables are initially recognised at transaction price and subsequently measured at amortised cost using the effective interest method, less allowance for doubtful trade receivables. The allocation of trade receivables and allowance for trade receivables is based on the location of the customer. Before being sold, trade receivables in factoring portfolios are measured at fair value with changes recognised in other comprehensive income. The allowance for doubtful receivables is deducted from the carrying amount of trade receivables, and the amount of the loss is recognised in the income statement under sales and distribution costs. Subsequent recoveries of amounts previously written off are credited against sales and distribution costs. Novo Nordisk’s customer base comprises government agencies, wholesalers, retail pharmacies and other customers. Management makes allowance for doubtful trade receivables based on the simplified approach to provide for expected credit losses, which permits the use of the lifetime expected loss provision for all trade receivables. The allowance is an estimate based on shared credit risk characteristics and the days past due. Generally, invoices are due for payment within 90 days from shipment of goods. Loss allowance is calculated using an ageing factor, geographical risk and specific customer knowledge. The allowance is based on a provision matrix on days past due and a forward looking-element relating mainly to incorporation of the Dun & Bradstreet country risk rating and an individual assessment. Please refer to note 4.2 for a general description of credit risk. 3.5 Retirement benefit obligations Net retirement benefit obligations DKK million 2020 2019 Retirement benefit obligations 2,624 2,508 Fair value of plan assets 1,225 1,174 Net retirement benefit obligations 1,399 1,334 Key assumptions used for valuation and sensitivity analysis DKK million Key assumptions 1%-point increase 1%-point decrease 2020 Discount rate (decrease)/increase 1.0 % (403) 523 Future remuneration growth (decrease)/increase 2.2 % 116 (101) 2019 Discount rate (decrease)/increase 1.3 % (366) 465 Future remuneration growth (decrease)/increase 2.4 % 105 (94) The sensitivities consider the single change shown, with the other assumptions assumed to be unchanged. The table shows the NPV impact of net retirement liabilities. Defined contribution plans Novo Nordisk operates a number of defined contribution plans throughout the world. These plans are externally funded in entities that are legally separate from the Group. Defined benefit plans In a few countries, Novo Nordisk operates defined benefit plans, primarily located in the US, Germany, Switzerland and Japan. In Germany and Switzerland, the defined benefit plans are partly reimbursed by international insurance companies. The risk related to the plan assets in these countries is therefore limited to counterparty risk against these insurance companies. The total cost recognised for the year amounts to DKK 138 million (DKK 151 million in 2019). The present value of partly funded retirement benefit obligations amounts to DKK 1,953 million (DKK 1,845 million in 2019). The present value of unfunded retirement benefit obligations amounts to DKK 671 million (DKK 663 million in 2019). Net remeasurement is a loss of DKK 67 million (loss of DKK 187 million in 2019), primarily related to changes in financial assumptions (discount rate), and is included in other comprehensive income. Please refer to note 5.2 for a maturity analysis of the net retirement benefit obligation. Novo Nordisk does not expect the contributions over the next five years to differ significantly from current contributions. Accounting policies Defined contribution plans Novo Nordisk’s contributions to the defined contribution plans are charged to the income statement in the year to which they relate. Defined benefit plans The costs for the year for defined benefit plans are determined using the projected unit credit method. This reflects services rendered by employees to the valuation dates and is based on actuarial assumptions primarily regarding discount rates used in determining the present value of benefits and projected rates of remuneration growth. Discount rates are based on the market yields of high-rated corporate bonds in the country concerned. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income in the period in which they arise. Past service costs are recognised immediately in the income statement. Pension plan assets are only recognised to the extent that Novo Nordisk is able to derive future economic benefits such as refunds from the plan or reductions of future contributions. Costs recognised for retirement benefits are included in cost of goods sold, sales and distribution costs, research and development costs, and administrative costs. The net obligation recognised in the balance sheet is reported as non-current liabilities. Actuarial valuations are performed annually for all major defined benefit plans. Assumptions regarding future mortality are based on actuarial advice in accordance with published statistics and experience in each country. Other assumptions such as medical cost trend rate and inflation are also considered in the calculation. Significant actuarial assumptions for the determination of the retirement benefit obligation (not considering plan assets) are discount rate and expected future remuneration increases. The sensitivity analysis has been determined based on reasonably likely changes in the assumptions occurring at the end of the period. 3.6 Provisions and contingent liabilities DKK million Provisions for sales rebates 1 Provisions Provisions Other provi- sions 2 2020 2019 At the beginning of the year 30,878 2,375 1,082 1,398 35,733 29,553 Additional provisions, including increases to existing provisions 111,921 662 413 814 113,810 104,621 Amount used during the year (106,116) (364) (694) (46) (107,220) (99,244) Adjustments, including unused amounts reversed during the year 166 — (6) (82) 78 148 Effect of exchange rate adjustment (2,797) (222) — (42) (3,061) 655 At the end of the year 34,052 2,451 795 2,042 39,340 35,733 Non-current liabilities 3 301 2,209 293 1,723 4,526 4,613 Current liabilities 33,751 242 502 319 34,814 31,120 1. Provisions for sales rebates are related to US Managed Care, Medicare, Medicaid and other minor US rebate types, as well as rebates in a number of European countries and Canada. 2. Other provisions consists of various types of provision, including obligations in relation to employee benefits such as jubilee benefits, company-owned life insurance, etc. 3. For non-current liabilities, provision for sales rebates is expected to be settled after one year, provisions for product returns will be utilised in 2022 and 2023. In the case of provisions for legal disputes, the timing of settlement cannot be determined. Contingent liabilities Novo Nordisk is currently involved in pending litigations, claims and investigations arising out of the normal conduct of its business. While provisions that Management deems to be reasonable and appropriate have been made for probable losses, there are uncertainties connected with these estimates. Novo Nordisk does not expect the pending litigations, claims and investigations, individually and in the aggregate, to have a material impact on Novo Nordisk’s financial position, operating profit or cash flow in addition to the amounts accrued as provision for legal disputes. Pending litigation against Novo Nordisk Novo Nordisk, along with the majority of incretin-based product manufacturers in the United States, is a defendant in product liability lawsuits related to use of incretin-based medications. As of 1 February 2021, 384 plaintiffs have named Novo Nordisk in product liability lawsuits, predominantly claiming damages for pancreatic cancer that allegedly developed as a result of using Victoza ® and other GLP-1/DPP-IV incretin-based products. 236 of the Novo Nordisk plaintiffs have also named other defendants in their lawsuits. Most Novo Nordisk plaintiffs have filed suit in California federal and state courts. Novo Nordisk does not currently have any individual trials scheduled in 2021. Novo Nordisk does not expect the pending claims to have a material impact on its financial position, operating profit or cash flow. Since January 2017, several class action lawsuits have been filed against Novo Nordisk, former CEO Lars Rebien Sørensen, former CFO Jesper Brandgaard and former President of Novo Nordisk Inc. Jakob Riis in the United States District Court for the District of New Jersey on behalf of all purchasers of Novo Nordisk American Depositary Receipts between February 2015 and February 2017. All lawsuits have been consolidated into one case. The lawsuit alleges that Novo Nordisk artificially inflated its financial results, failed to disclose pricing pressure and rising rebate payments to PBMs, and made other materially misleading statements to potential investors. Novo Nordisk does not expect the litigation to have a material impact on Novo Nordisk’s financial position, operating profit or cash flow. In August 2019, a securities lawsuit was filed against Novo Nordisk in Denmark by a number of institutional shareholders. The claim is for a total amount of DKK 11.8 billion based on trading and holding of shares in Novo Nordisk during the period between February 2015 and February 2017. The lawsuit alleges that Novo Nordisk made misleading statements and did not make appropriate disclosures regarding its sales of insulin products in the US. It contains broadly similar allegations to those of the previously disclosed securities class action lawsuit filed in the US in 2017 on behalf of all purchasers of Novo Nordisk American Depository Receipts. Novo Nordisk does not expect the lawsuit to have a material impact on Novo Nordisk’s financial position, operating profit or cash flow. Novo Nordisk is currently defending six lawsuits, including two plead as putative class actions, relating to the pricing of diabetes medicines. Four of these cases are pending in New Jersey federal court; the other two are pending in Kentucky state court and Texas federal court. All pending matters also name as defendants Eli Lilly and Company and Sanofi-Aventis U.S. LLC; while certain matters also name Pharmacy Benefit Managers (PBMs) and related entities. Plaintiffs generally allege that the manufacturers and PBMs colluded to artificially inflate list prices paid by consumers for diabetes products, while offering reduced prices to PBMs through rebates used to secure formulary access. Novo Nordisk does not expect the lawsuits to have a material impact on Novo Nordisk’s financial position, operating profit or cash flow. In 2016, Novo Nordisk US received a Civil Investigative Demand from the U.S. Department of Justice (“DOJ CID”) relating to potential off-label marketing of NovoSeven ® (including high dose and for prophylactic use) and interactions with physicians and patients. The DOJ investigation was likely prompted by a lawsuit filed by |
Capital structure and financial
Capital structure and financial items | 12 Months Ended |
Dec. 31, 2020 | |
Share Capital, Reserves And Other Equity Interest And Financial Instruments [Abstract] | |
Capital structure and financial items | Capital structure and financial itemsEarnings per share, distributions to shareholders, treasury shares, share capital and other reserves Earnings per share DKK million 2020 2019 2018 Net profit 42,138 38,951 38,628 Average number of shares outstanding in million shares 2,333.9 2,374.3 2,419.6 Dilutive effect of average outstanding share pool 1 in million shares 6.1 4.4 4.8 Average number of shares outstanding, including dilutive effect of outstanding share pool in million shares 2,340.0 2,378.7 2,424.4 Basic earnings DKK 18.05 16.41 15.96 Diluted earnings DKK 18.01 16.38 15.93 1. For further information on the outstanding share pool, please refer to note 5.1. Accounting policies Earnings per share is presented as both basic and diluted earnings per share. Basic earnings per share is calculated as net profit divided by the monthly average number of shares outstanding. Diluted earnings per share is calculated as net profit divided by the sum of monthly average number of shares outstanding, including the dilutive effect of the outstanding share pool. Please refer to ‘Financial definitions’ for a description of calculation of the dilutive effect. Cash distribution to shareholders DKK million 2020 2019 2018 Interim dividend for the year 7,570 7,100 7,238 Dividend for prior year 12,551 12,309 11,810 Share repurchases for the year 16,855 15,334 15,567 Total 36,976 34,743 34,615 The net cash distribution to shareholders in the form of dividends and share repurchases amounts to DKK 36,976 million, compared with a free cash flow of DKK 28,565 million. This is in line with the guiding principle of paying out excess capital to investors after funding organic growth and potential acquisitions. The total dividend for 2020 amounts to DKK 21,066 million (DKK 9.10 per share). The 2020 final dividend of DKK 13,496 million (DKK 5.85 per share) is expected to be distributed pending approval at the Annual General Meeting. The interim dividend of DKK 7,570 million (DKK 3.25 per share) was paid in August 2020. The total dividend for 2019 was DKK 19,651 million (DKK 8.35 per share), of which the final dividend of DKK 12,551 million (DKK 5.35 per share) was paid in March 2020. No dividend is declared on treasury shares. According to Danish corporate law, reserves available for distribution as dividends are based on the financial statements of the parent company, Novo Nordisk A/S. Dividends are paid from distributable reserves. Share premium is a distributable reserve, and any former share premium reserve has been fully distributed. As at 31 December 2020, distributable reserves total DKK 51,858 million (DKK 40,801 million in 2019), corresponding to the parent company's retained earnings and cash flow hedge reserve. Treasury shares 2020 2019 Market value, Treasury shares in % Number of B shares of DKK 0.20 (million) Number of B shares of DKK 0.20 (million) Holding at the beginning of the year 18,613 2.0 % 48.1 55.8 Cancellation of treasury shares (19,333) (50.0) (50.0) Transfer regarding restricted stock units (148) (0.4) (2.6) Purchase during the year 16,855 39.8 44.9 Value adjustment 29 — — Holding at the end of the year 16,016 1.6 % 37.5 48.1 Treasury shares Treasury shares are primarily acquired to reduce the company’s share capital. In addition, a limited part is used to finance Novo Nordisk’s long-term share-based incentive programme (restricted stock units) and restricted stock units to employees. Treasury shares are deducted from the share capital on cancellation at their nominal value of DKK 0.20 per share. Differences between this amount and the amount paid to acquire or received for disposing of treasury shares are deducted directly in equity. Novo Nordisk’s guiding principle is that any excess capital after the funding of organic growth opportunities and potential acquisitions should be returned to investors. Novo Nordisk's dividend payouts are complemented by share repurchase programmes. The purchase of treasury shares during the year relates to the remaining part of the 2019 share repurchase programme, totalling DKK 0.9 billion and the DKK 17 billion Novo Nordisk B share repurchase programme for 2020, of which DKK 1 billion was outstanding at year-end. The programme ended on 1 February 2021. Transfer of treasury shares relates to the long-term share-based incentive programme and restricted stock units to employees. Share capital Total share capital DKK million A share B share Development in share capital: Share capital 2017 107 393 500 Cancelled in 2018 — (10) (10) Cancelled in 2019 — (10) (10) Share capital at the beginning 107 373 480 Cancelled in 2020 — (10) (10) Share capital at the end 107 363 470 At the end of 2020, the share capital amounted to DKK 107 million in A share capital (equal to 537 million A shares of DKK 0.20) and DKK 363 million in B share capital (equal to 1,813 million B shares of DKK 0.20). Each A share carries 200 votes and each B share carries 20 votes. Specification of Other reserves DKK million Exchange rate ad- Cash flow hedges Tax and other items Total Reserve at (1,556) 2,027 (32) 439 Other comprehensive income, net for 2018 491 (3,704) 728 (2,485) Reserve at (1,065) (1,677) 696 (2,046) Other comprehensive income, net for 2019 226 1,348 (222) 1,352 Reserve at (839) (329) 474 (694) Other comprehensive income, net for 2020 (1,689) 1,713 (567) (543) Transfer of cash flow hedge reserve to intangible assets 1 418 (92) 326 Reserve at (2,528) 1,802 (185) (911) 1. For information on derivatives refer to note 4.3 4.2 Financial risks Management has assessed the following key financial risks: Type Financial risk Foreign exchange risk High Credit risk Low Interest rate risk Low Liquidity risk Low Novo Nordisk has centralised management of the Group's financial risks. The overall objectives and policies for the company's financial risk management are outlined in an internal Treasury Policy, which is approved by the Board of Directors. The Treasury Policy consists of the Foreign Exchange Policy, the Investment Policy, the Financing Policy and the Policy regarding Credit Risk on Financial Counterparts, and includes a description of permitted use of financial instruments and risk limits. Novo Nordisk only hedges commercial exposures and consequently does not enter into derivative transactions for trading or speculative purposes. Novo Nordisk uses a fully integrated treasury management system to manage all financial positions, and all positions are marked-to-market. Foreign exchange risk Foreign exchange risk is the most important financial risk for Novo Nordisk and can have a significant impact on the income statement, statement of comprehensive income, balance sheet and cash flow statement. The overall objective of foreign exchange risk management is to reduce the short-term negative impact of exchange rate fluctuations on earnings and cash flow, thereby contributing to the predictability of the financial results. The majority of Novo Nordisk's sales are in USD, EUR, CNY, JPY, CAD and GBP. The foreign exchange risk is most significant in USD, CNY and JPY, while the EUR exchange rate risk is regarded as low because of Denmark's fixed exchange rate policy towards EUR. Novo Nordisk hedges existing assets and liabilities in key currencies as well as future expected cash flows up to a maximum of 24 months forward. Hedge accounting is applied to match the impact of the hedged item and the hedging instrument in the consolidated income statement. Management has chosen to classify the result of hedging activities as part of financial items. During 2020, the hedging horizon varied between 5 and 13 months for USD, CNY, JPY, CAD and GBP. The currency hedging strategy balances risk reduction and cost of hedging by use of foreign exchange forwards and foreign exchange options matching the due dates of the hedged items. Expected cash flows are continually assessed using historical inflows, budgets and monthly sales forecasts. Hedge effectiveness is assessed on a regular basis. There is no expected ineffectiveness at 31 December 2020, primarily because hedging instruments match currencies of hedged cash flows. The financial contracts existing at year-end cover the expected future cash flow for the following number of months: 2020 2019 USD 10 months 9 months CNY 1 6 months 7 months JPY 12 months 12 months CAD 9 months 9 months GBP 11 months 10 months 1. Chinese yuan traded offshore (CNH) is used to hedge Novo Nordisk's CNY currency exposure. Key currencies Exchange rate DKK per 100 2020 2019 2018 USD Average 654 667 631 Year-end 606 668 652 Year-end change (9.3 %) 2.5 % 5.1 % CNY Average 95 97 95 Year-end 93 96 95 Year-end change (3.1 %) 1.1 % (0.3 %) JPY Average 6.13 6.12 5.72 Year-end 5.88 6.11 5.91 Year-end change (3.8 %) 3.4 % 7.3 % CAD Average 488 503 487 Year-end 474 511 479 Year-end change (7.2 %) 6.7 % (3.2 %) GBP Average 839 852 842 Year-end 824 877 827 Year-end change (6.0 %) 6.0 % (1.4 %) Foreign exchange sensitivity analysis At year-end, an immediate 5% increase/decrease in the following currencies versus EUR and DKK would impact Novo Nordisk’s operating profit estimated by Management as outlined in the table below: Estimated for DKK million 2021 2020 USD 1,900 1,950 CNY 460 450 JPY 200 150 CAD 140 130 GBP 110 100 At year-end, an immediate 5% increase/decrease in all other currencies versus EUR and DKK would affect other comprehensive income and the income statement as outlined in the table below: DKK million Immediate Immediate 2020 Other comprehensive income (1,893) 1,893 Income statement 299 (299) Total (1,594) 1,594 2019 Other comprehensive income (1,811) 1,811 Income statement 199 (199) Total (1,612) 1,612 A 5% depreciation of USD versus EUR and DKK at 31 December 2020 would affect other comprehensive income by DKK 1,380 million (DKK 1,298 million in 2019) and the income statement by DKK -2 million (DKK 135 million in 2019). The foreign exchange sensitivity analysis comprises effects from the Group's cash, trade receivables and trade payables, current loans, current and non-current financial investments, lease liabilities, foreign exchange forwards and foreign exchange options at year-end. Anticipated currency transactions, investments and non-current assets are not included. Credit risk Credit risk arises from the possibility that transactional counterparties may default on their obligations, causing financial losses for the Group. Novo Nordisk considers its maximum credit exposure to financial counterparties to be DKK 15,089 million (DKK 15,663 million in 2019). In addition, Novo Nordisk considers its maximum credit exposure to trade receivables, other receivables (less prepayments and VAT receivables) and other financial assets to be DKK 29,522 million (DKK 26,622 million in 2019). Please refer to note 4.8 for details of the Group's total financial assets. To manage credit risk regarding financial counterparties, Novo Nordisk only enters into derivative financial contracts and money market deposits with financial counterparties possessing a satisfactory long-term credit rating from at least two out of the three selected ratings agencies: Standard and Poor's, Moody's and Fitch. Furthermore, maximum credit lines defined for each counterparty diversify the overall counterparty risk. The table below shows Novo Nordisk's credit exposure on cash and financial derivatives. Credit exposure for cash at bank and derivative financial instruments (market value) DKK million Cash at Derivative financial instruments Total 2020 AA range 7,296 989 8,285 A range 4,443 1,343 5,786 BBB range 212 — 212 Not rated or below BBB range 806 — 806 Total 12,757 2,332 15,089 2019 AA range 7,471 139 7,610 A range 7,145 49 7,194 BBB range 314 — 314 Not rated or below BBB range 545 — 545 Total 15,475 188 15,663 Outside the US, Novo Nordisk has no significant concentration of credit risk related to trade receivables or other receivables and prepayments, as the exposure in general is spread over a large number of counterparties and customers. In the US, the three major wholesalers account for a large proportion of total net sales, see note 2.1. However, US wholesaler credit ratings are monitored and part of the trade receivables are sold on full non-recourse terms; see below for details. Novo Nordisk continues to monitor the credit exposure in countries with increasing sales and low credit ratings. Trade receivable programmes Please refer to note 3.4 for the description of COVID-19's impact on trade receivables including the loss allowance for the Group and ageing analysis. Novo Nordisk's subsidiaries in the US and Japan employ trade receivable programmes in which trade receivables are sold on full non-recourse terms to optimise working capital. At year-end, the Group had derecognised receivables without recourse having due dates after 31 December 2020 amounting to: DKK million 2020 2019 2018 US 1,817 3,672 3,587 Japan 2,351 2,149 1,937 In addition, full non-recourse off-balance-sheet factoring arrangement programmes are occasionally applied by Novo Nordisk subsidiaries around the world, with limited impact on the Group's trade receivables. Please refer to note 3.4 for the split of allowance for trade receivables by geographical segment. Interest rate risk Novo Nordisk has no significant exposure to interest rate risk as Novo Nordisk does not hold any significant interest-bearing marketable securities or non-current loans. Furthermore, net interest costs have low sensitivity towards interest rates due to the capital structure. Liquidity risk The liquidity risk is considered to be low. Novo Nordisk ensures the availability of the required liquidity through a combination of cash management, highly liquid investment portfolios and both uncommitted and committed credit facilities. Novo Nordisk uses cash pools for optimisation and centralisation of cash management. 4.3 Derivative financial instruments Derivative financial instruments 2020 2019 DKK million Contract Positive Negative Contract Positive Negative Forward contracts USD 1 29,110 1,658 — 25,394 81 315 Forward contracts CNH, JPY, GBP and CAD 10,291 191 47 10,013 35 130 Forward contracts, cash flow hedges 39,401 1,849 47 35,407 116 445 Forward contracts USD 19,411 379 1,307 11,287 61 217 Forward contracts CNH, CAD, EUR, GBP and JPY 4,578 104 11 3,761 11 72 Forward contracts, fair value hedges 23,989 483 1,318 15,048 72 289 Total derivative financial instruments 63,390 2,332 1,365 50,455 188 734 Recognised in the income statement 483 1,318 72 289 Recognised in other comprehensive income 2 1,849 47 116 445 1. Average hedge rate for USD cash flow hedges is 640 at the end of 2020 and 654 at the end of 2019. 2. The fair value of cash flow hedges at year-end 2020, DKK 1,802 million, is recognised in other comprehensive income. In addition DKK 418 million in cash flow hedge losses on intangible asset purchases has been incurred for a total 2020 other comprehensive impact of DKK 1,384 million. The DKK 418 million deferred loss was transferred directly from the cash flow hedge reserve to the initial cost of the intangible assets. The financial contracts are expected to impact the income statement within the next 12 months, with deferred gains and losses on cash flow hedges then being transferred to financial income or financial expenses. Accounting policies Novo Nordisk uses financial instruments to reduce the impact of foreign exchange on financial results. Use of derivative financial instruments The derivative financial instruments are used to manage the exposure to market risk. None of the derivatives are held for trading. Novo Nordisk uses forward exchange contracts and, to a lesser extent, currency options to hedge forecast transactions, assets and liabilities. The overall policy is to hedge the majority of total currency exposure. Net investments in foreign subsidiaries are currently not hedged. Initial recognition and measurement On initiation of the contract, Novo Nordisk designates each derivative financial contract that qualifies for hedge accounting as one of: – hedges of the fair value of a recognised asset or liability (fair value hedge) – hedges of the fair value of a forecast financial transaction (cash flow hedge). All contracts are initially recognised at fair value and subsequently remeasured at fair value at the end of the reporting period. Fair value hedges Value adjustments of fair value hedges are recognised in the income statement along with any value adjustments of the hedged asset or liability that are attributable to the hedged risk. Cash flow hedges Value adjustments of the effective part of cash flow hedges are recognised directly in other comprehensive income. The cumulative value adjustment of these contracts is transferred from other comprehensive income to the income statement when the hedged transaction is recognised in the income statement. For cash flow hedges of foreign currency risk on highly probable non-financial asset purchases, the cumulative value adjustments are transferred directly from the cash flow hedge reserve to the initial cost of the asset when recognised. Discontinuance of cash flow hedging When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognised when the forecast transaction is ultimately recognised in the income statement. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the income statement under financial income or financial expenses. Fair value determination The fair value of derivative financial instruments is measured on the basis of quoted market prices of financial instruments traded in active markets. If an active market exists, the fair value is based on the most recently observed market price at the end of the reporting period. If a financial instrument is quoted in a market that is not active, Novo Nordisk bases its valuation on the most recent transaction price. Adjustment is made for subsequent changes in market conditions, for instance by including transactions in similar financial instruments assumed to be motivated by normal business considerations. If an active market does not exist, the fair value of standard and simple financial instruments, such as foreign exchange forward contracts, interest rate swaps, currency swaps and unlisted bonds, is measured according to generally accepted valuation techniques. Market-based parameters are used to measure the fair value. 4.4 Borrowings Contractual undiscounted cashflows 2020 2019 DKK million Leases Loans Bank overdrafts 1 Total Leases Bank overdrafts 1 Total Within 1 year 855 5,577 1,107 7,539 847 659 1,506 1-3 years 1,247 — — 1,247 1,424 — 1,424 3-5 years 694 — — 694 734 — 734 More than 5 years 1,241 — — 1,241 1,140 — 1,140 Total contractual undiscounted cash flows 4,037 5,577 1,107 10,721 4,145 659 4,804 Contractual discounted cash flows included 3,672 5,577 1,107 10,356 3,824 659 4,483 Non-current liabilities 2,897 — — 2,897 3,009 — 3,009 Current liabilities 775 5,577 1,107 7,459 815 659 1,474 Reconciliation of liabilities arising from financing activities Non-cash movements DKK million Beginning of the year Cash flows Additions Disposals Exchange rates Other End of the year 2020 Lease liabilities 3,824 (950) 978 — (171) (9) 3,672 Loans — 5,582 — — (5) — 5,577 Bank overdrafts 1 595 100 — — (119) — 576 Liabilities arising from financing activities 4,419 4,732 978 — (295) (9) 9,825 Bank overdrafts 1 64 467 — — — — 531 Total borrowings 4,483 5,199 978 — (295) (9) 10,356 2019 Lease liabilities 3,988 (822) 640 (57) 63 12 3,824 Bank overdrafts 1 506 81 — — 8 — 595 Liabilities arising from financing activities 4,494 (741) 640 (57) 71 12 4,419 Bank overdrafts 1 9 55 — — — — 64 Total borrowings 4,503 (686) 640 (57) 71 12 4,483 4.5 Cash and cash equivalents, financial reserves and free cash flow DKK million 2020 2019 2018 Cash and cash equivalents Cash at bank (note 4.2) 12,757 15,475 15,638 Borrowings 1 (531) (64) (9) Cash and cash equivalents 12,226 15,411 15,629 Financial reserves Cash and cash equivalents 12,226 15,411 15,629 Undrawn committed credit facility 2 11,531 11,578 11,574 Undrawn bridge facility 3 5,577 — — Borrowings 1, 3 (576) (595) (506) Financial reserves 4 28,758 26,394 26,697 Free cash flow DKK million 2020 2019 2018 Net cash generated from 51,951 46,782 44,616 Net cash used in investing activities (22,436) (11,509) (12,080) Repayment on lease liabilities (950) (822) — Free cash flow 4 28,565 34,451 32,536 1. Bank overdrafts includes DKK 576 million classified as financing activities (DKK 595 million in 2019) and DKK 531 million classified as cash and cash equivalents (DKK 64 million in 2019). 2. The undrawn committed credit facility comprises a EUR 1,550 million facility (EUR 1,550 million in 2019 and EUR 1,550 million in 2018) committed by a portfolio of international banks. The facility matures in 2024. 3. The undrawn bridge facility included in financial reserves comprises the EUR 750 million (DKK 5,577 million) undrawn portion of EUR 1,500 million bridge facility. The facility is expected to mature in 2021 but the terms provide that the maturity can be extended, at the option of Novo Nordisk, through June 2022. Financial reserves include amounts undrawn under credit facilities and overdrafts where the repayment is not contractually required within 12 months. In accordance with IFRS, the DKK 5,577 million (EUR 750 million) drawn loan has been classified as current borrowings as it is Management's expectation that it will be repaid in 2021. 4. Additional non-IFRS financial measure; please refer to 'Non-IFRS financial measures', which is not part of the audited financial statements. 4.6 Change in working capital DKK million 2020 2019 2018 Inventories (895) (1,305) (963) Trade receivables (2,822) (2,126) (2,621) Other receivables and prepayments (419) (1,190) (662) Trade payables (641) (398) 1,146 Other liabilities 1,274 1,202 (348) Adjustment for payables related to non-current assets 879 295 84 Adjustment related to divestment of Group companies — (42) — Change in working capital including exchange rate adjustments (2,624) (3,564) (3,364) Exchange rate adjustments (1,729) 176 (6) Cash flow change in working capital (4,353) (3,388) (3,370) Accounting policies Working capital is defined as current assets less current liabilities and measures the liquid assets Novo Nordisk has available for the business. 4.7 Other non-cash items For the purpose of presenting the cash flow statement, non-cash items with effect on the income statement must be reversed to identify the actual cash flow effect from the income statement. The adjustments are specified as follows: DKK million 2020 2019 2018 Reversals of non-cash income statement items Interest income and interest expenses, net (note 4.9) 53 155 34 Capital gain/(loss) on investments, net etc (note 4.9) 195 145 (163) Result of associated company (note 4.9) (149) 137 (12) Share-based payment costs (note 5.1) 823 363 414 Income from the divestment of Group companies — (68) (122) Adjustment in non-cash items — 162 — Increase/(decrease) in provisions (note 3.6) and retirement benefit obligations (note 3.5) 3,605 6,071 5,503 Other 3,322 67 444 Total other non-cash items 7,849 7,032 6,098 4.8 Financial assets and liabilities Financial assets by category DKK million 2020 2019 Other financial assets 1 766 970 Derivative financial instruments (note 4.3) 2,332 188 Financial assets at fair value through the income statement 3,098 1,158 Other financial assets 1 300 364 Trade receivables 11,643 12,203 Other receivables and prepayments (current and non-current) 4,835 4,275 – less prepayments and VAT receivables (4,113) (3,899) Cash at bank (note 4.5) 12,757 15,475 Financial assets at amortised cost 25,422 28,418 Trade receivables in a factoring portfolio 2 16,091 12,709 Financial assets at fair value through OCI 16,091 12,709 Total financial assets at the end of the year by category 1 44,611 42,285 1. Financial assets with the exception of other financial assets and non-current part of other receivables and prepayments (DKK 674 million in 2020, DKK 841 million in 2019) are all due within one year. Other financial assets at amortised cost include DKK 280 million which are due in more than five years (DKK 327 million in 2019). Other financial assets measured at fair value through the income statement are minor shareholdings. 2. Trade receivables which are measured at fair value through OCI, which have no associated loss allowance. Refer to note 3.4. Financial liabilities by category DKK million 2020 2019 Derivative financial instruments (note 4.3) 1,365 734 Financial liabilities measured at 1,365 734 Borrowings (non-current) 2,897 3,009 Borrowings (current) 3 7,459 1,474 Trade payables 5,717 6,358 Other liabilities 17,005 15,085 – less VAT and duties payable (598) (478) Financial liabilities measured at 32,480 25,448 Total financial liabilities at the end of the year by category 4 33,845 26,182 3. The fair value of loans approximates the booked amount 4. Please refer to note 4.4 for a maturity analysis for non-current and current borrowings. All other financial liabilities are due within one year. Fair value measurement hierarchy DKK million 2020 2019 Active market data 634 846 Directly or indirectly observable market data 2,332 188 Not based on observable market data 5 16,223 12,833 Total financial assets at fair value 19,189 13,867 Active market data — — Directly or indirectly observable market data 1,365 734 Not based on observable market data — — Total financial liabilities at fair value 1,365 734 5. The fair value of trade receivables in a factoring portfolio is calculated based on the net invoice amount (invoice amount less charge-backs) less the fee payable to the factoring entity. The factoring fee is insignificant due to the short period between the time of sale to the factoring entity and the invoice due date and the rate applicable. Inputs into the estimate of US wholesaler charge-backs are described in note 2.1. Financial assets and liabilities measured at fair value can be categorised using the fair value measurement hierarchy above. There were no transfers between the ’Active market data’ and ’Directly or indirectly observable market data’ categories during 2020, 2019 or 2018. There are no significant intangible assets or items of property, plant and equipment measured at fair value. For a description of the credit quality of financial assets such as trade receivables, cash at bank, current debt and derivative financial instruments, refer to notes 4.2 and 4.3. Accounting policies Depending on purpose, Novo Nordisk classifies investments into the following categories: – Financial assets at fair value through the income statement – Financial assets at amortised cost – Financial assets at fair value through OCI Management determines the classification of its financial assets on initial recognition and re-evaluates this at the end of every reporting period to the extent that such a classification is permitted or required. Recognition and measurement Purchases and sales of financial assets are recognised on the settlement date. These are initially recognised at fair value. Fair value disclosures are made separately for each class of financial instruments at the end of the reporting period. Financial assets are removed from the balance sheet when the rights to receive cash flows have expired or have been transferred, and Novo Nordisk has transferred substantially all the risks and rewards of ownership. Financial assets 'at fair value through the income statement' Financial assets at fair value through the income statement consist of equity investments and forward exchange contracts. Equity investments are included in other financial assets unless management intends to dispose of the investment within 12 months of the end of the reporting period. In that case, the current part is included in other receivables and prepayments. Net gains and losses arising from changes in the fair value of financial assets are recognised in the income statement as financial income or expenses. The fair values of quoted investments are based on current bid prices at the end of the reporting period. Financial assets for which no active market exists are carried at fair value based on a valuation methodology. Financial assets 'at amortised cost' Financial assets at amortised cost are cash at bank and non-derivative financial assets solely with payments of principal and interest. Novo Nordisk normally 'holds-to-collect' the financial assets to attain the contractual cash flows. If collection is expected within one year (or in the normal operating cycle of the business if longer), they are classified as current assets. If not, they are presented as non-current assets. Trade receivables are initially recognised at transaction price and other receivables are recognised initially at fair value. Subsequently they are measured at amortised cost using the effective interest method, less allowance for doubtful receivables. Financial assets 'at fair value through other comprehensive income' Financial assets at fair value through other comprehensive income are trade receivables that are held to collect or to sell in factoring agreements. Financial liabilities 'at fair value through the income statement' Financial liabilities at fair value through the income statement consist of forward exchange contracts. Financial liabilities 'at amortised cost' Financial liabilities at amortised cost consist of bank overdrafts, trade payables and other liabilities. 4.9 Financial income and expenses Financial income DKK million 2020 2019 2018 Interest income 1 337 65 51 Foreign exchange gain (net) 1,142 — — Financial gain from forward contracts (net) — — 1,656 Financial gain from currency options (net) — — 152 Capital gain on investments, etc. — — 251 Result of associated companies 149 — 12 Total financial income 1,628 65 2,122 Financial expenses DKK million 2020 2019 2018 Interest expenses 1 390 220 85 Foreign exchange loss (net) — 539 1,510 Financial loss from forward contracts (net) 1,889 2,673 — Capital loss on investments, etc. 195 145 88 Result of associated companies — 137 — Other financial expenses 150 281 72 Total financial expenses 2,624 3,995 1,755 1. Total interest income and expenses is measured at amortised cost for financial assets and liabilities. Financial impact from forward contracts and currency options, specified DKK million 2020 2019 2018 Forward contracts Income/(loss) transferred from other comprehensive income (329) (1,677) 1,841 Value adjustment of transferred contracts 79 (1,609) (1,299) Unrealised fair value adjustments of forward contracts (835) (217) (143) Realised foreign exchange gain/(loss) on forward contracts (804) 830 1,257 Financial income/(expense) from forward contracts (1,889) (2,673) 1,656 Currency options Realised income/(loss) transferred from other comprehensive income — — 186 Value adjustment of transferred options — — (3) Foreign exchange gain/(loss) on currency options — — (31) Financial income/(expense) from currency options — — 152 Accounting policies As described in note 4.2 Management has chosen to classify the result of hedging activities as part of financial items in the income statement except for cash flow hedges of foreign currency risk 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. Finally, value adjustments of foreign currency assets and liabilities in non-hedged currencies will impact financial income and financial expenses. |
Other disclosures
Other disclosures | 12 Months Ended |
Dec. 31, 2020 | |
Additional information [abstract] | |
Other disclosures | Other disclosures 5.1 Share-based payment schemes Share-based payment expensed in the income statement DKK million 2020 2019 2018 Restricted stock units to employees 189 48 204 Long-term share-based incentive programme (Management Board) 1 162 86 48 Long-term share-based incentive programme (management group below Management Board) 436 195 145 Shares allocated to individual employees 36 34 17 Share-based payment expensed in the income statement 823 363 414 1. In 2017 Novo Nordisk introduced, for the first time, a share-based compensation programme with terms which amortises the grant date valuation over four years. The 2020 expense includes amortisation of the 2017, 2018, 2019 and 2020 programmes. Restricted stock units to employees In appreciation of the efforts of employees during recent years, as of 1 August 2019, all employees in the company were offered 75 restricted stock units. A restricted stock unit gives the holder the right to receive one Novo Nordisk B share free of charge in February 2023 subject to continued employment. The cost of the DKK 660 million programme is amortised over the vesting period. Long-term share-based incentive programme Management Board On 2 February 2021, the Board of Directors approved the allocation of a total of 370,038 Novo Nordisk B shares to the members of the Management Board for the 2020 financial year. The value at launch of the programme (adjusted for expected dividends) was DKK 152 million. On average, this corresponds to 14.9 months’ fixed base salary plus pension contribution for the CEO, 11.2 months’ fixed base salary plus pension contribution per executive vice president as of 1 March 2020 and 8.3 months’ fixed base salary plus pension for senior vice presidents. The cost of the 2020 programme is amortised over the vesting period of 2020-2023 at an annual amount of DKK 38 million. The amount of shares allocated may be reduced or increased by up to 30%, depending on whether the average sales growth per year in the three-year vesting period deviates from a target set by the Board of Directors. The grant date of the programme was February 2020, and the share price used for the determining the grant date fair value of the award was the average share price (DKK 435) for Novo Nordisk B shares on Nasdaq Copenhagen in the period 5-19 February 2020, adjusted for the expected dividend. Based on the split of participants when the share allocation was decided, 47% of the allocated shares will be allocated to members of Executive Management and 53% to other members of the Management Board. The shares allocated to the pool for 2017 were released to the individual participants subsequent to approval of the 2020 Annual Report by the Board of Directors and after the announcement of the 2020 full-year financial results on 3 February 2021. The shares allocated correspond to a value at launch of the programme of DKK 76 million, expensed over the vesting period of 2017-2020. The number of shares to be transferred (331,587 shares) is lower than the original number of shares allocated, as some participants had left the company before the programme's release conditions were met. All restricted stock units and shares allocated to Management are hedged by treasury shares. Management group below Management Board The management group below the Management Board has a share-based incentive programme with similar performance criteria. For 2020, a total of 1,011,692 shares were allocated to this group, corresponding to a value at launch of the programme (adjusted for expected dividends) of DKK 416 million. The cost of the 2020 programme is amortised over the vesting period of 2020-2023 at an annual amount of DKK 104 million. The amount of shares allocated may be reduced or increased by up to 30%, depending on whether the average sales growth per year in the three-year vesting period deviates from a target set by the Board of Directors. The shares allocated for 2017 were released to the individual participants subsequent to approval of the 2020 Annual Report by the Board of Directors and after the announcement of the 2020 full-year financial results on 3 February 2021. The shares allocated correspond to a value at launch of the programme of DKK 162 million amortised over the period 2017-2020. The number of shares to be transferred (635,516 shares) is lower than the original number of shares allocated, as some participants had left the company before the programme’s release conditions were met. Accounting policies Share-based compensation Novo Nordisk operates equity-settled, share-based compensation plans. The fair value of the employee services received in exchange for the grant of shares is recognised as an expense and allocated over the vesting period. The total amount to be expensed over the vesting period is determined by reference to the fair value of the shares granted, excluding the impact of any non-market vesting conditions. The fair value is fixed at the grant date, and adjusted for expected dividends during the vesting period. Non-market vesting conditions are included in assumptions about the number of shares that are expected to vest. At the end of each reporting period, Novo Nordisk revises its estimates of the number of shares expected to vest. Novo Nordisk recognises the impact of the revision of the original estimates, if any, in the income statement and in a corresponding adjustment to equity (change in proceeds) over the remaining vesting period. Adjustments relating to prior years are included in the income statement in the year of adjustment. General terms and conditions of launched programmes Restricted stock units to employees Shares for Management Board Shares for management group below Management Board Shares allocated to individual employees 2020 2019 2018 2020 2019 2018 2020 2019 2018 2020 2019 2018 Number of shares awarded in the year — 2,148,580 — 370,038 508,398 411,090 1,011,692 1,300,333 1,114,455 43,790 154,122 159,437 Value per share at launch (DKK) — 307 — 411 298 280 411 298 280 391 311 278 Total market value at launch (DKK million) — 660 — 152 152 115 416 387 312 17 48 44 Amortisation period of the programme 2019 to 2023 2020 to 2023 2019 to 2022 2018 to 2021 2020 to 2023 2019 to 2022 2018 to 2021 2020 to 2023 2019 to 2022 2018 to 2021 Allocated to recipients Feb 2023 Feb 2024 Feb 2023 Feb 2022 Feb 2024 Feb 2023 Feb 2022 2023 2022 2021 Vesting period — 3.5 years — 3 years 3 years 3 years 3 years 3 years 3 years 3 years 3 years 3 years Outstanding restricted stock units Total Restricted stock units to employees Shares for Management Board Shares for management group below Management Board Shares allocated to individual employees 2020 2019 2018 2020 2019 2018 2020 2019 2018 2020 2019 2018 2020 2019 2018 Outstanding at the beginning of the year 6,879,198 5,584,019 4,933,882 2,148,580 1,521,031 1,556,211 1,326,080 1,228,714 1,115,494 3,173,185 2,665,226 2,226,683 231,353 169,048 35,494 Released allocated shares (361,844) (2,553,658) (825,537) (29,250) (1,431,192) (35,180) (95,082) (378,421) (284,173) (171,162) (662,172) (480,301) (66,350) (81,873) (25,883) Cancelled allocated shares (129,713) (262,596) (209,308) — (89,839) — (12,700) (32,611) (13,697) (95,038) (130,202) (195,611) (21,975) (9,944) — Allocated in the year 1,425,520 4,111,433 1,684,982 — 2,148,580 — 370,038 508,398 411,090 1,011,692 1,300,333 1,114,455 43,790 154,122 159,437 Performance adjustment 1 863,557 — — — — — 239,567 — — 623,990 — — — — — Outstanding at the end of the year 8,676,718 6,879,198 5,584,019 2,119,330 2,148,580 1,521,031 1,827,903 1,326,080 1,228,714 4,542,667 3,173,185 2,665,226 186,818 231,353 169,048 1. Number of shares for Management Board and management group below Management board has been adjusted as the sales growth target set by the Board is expected to be exceeded for the 2018, 2019 and 2020 programmes. 5.2 Commitments Total contractual obligations and recognised non-current debt can be specified as follows (payments due by period): 2020 2019 DKK million Within 1-3 3-5 More Total Within 1-3 3-5 More Total Retirement benefit obligations 23 46 44 1,286 1,399 13 26 25 1,270 1,334 Leases (note 4.4) 855 1,247 694 1,241 4,037 847 1,424 734 1,140 4,145 Total obligations recognised in the balance sheet 878 1,293 738 2,527 5,436 860 1,450 759 2,410 5,479 Leases 1 152 198 134 280 764 128 229 199 376 932 Research and development obligations 2,733 3,460 905 137 7,235 2,600 3,258 1,493 29 7,380 Research and development – potential milestone payments 2 205 918 507 2,453 4,083 300 1,023 1,009 2,403 4,735 Commercial product launch – potential milestone payments 2 — — 212 5,893 6,105 — — — 3,468 3,468 Purchase obligations relating to invest- 339 — — — 339 172 — — — 172 Other purchase obligations 7,528 3,014 773 748 12,063 5,695 2,989 1,175 621 10,480 Total obligations not recognised in the balance sheet 10,957 7,590 2,531 9,511 30,589 8,895 7,499 3,876 6,897 27,167 Total contractual obligations 11,835 8,883 3,269 12,038 36,025 9,755 8,949 4,635 9,307 32,646 1. Predominantly relates to estimated variable property taxes, leases committed not yet commenced and low value assets. 2. Potential milestone payments are associated with uncertainty as they are linked to successful achievements in research activities. Contractual obligations The lease commitments are related to IFRS 16 leases primarily for premises and company cars and include the present value of future lease payments during the lease term. Approximately 75% of the commitments are related to leases outside Denmark. Research and development obligations include contingent payments related to achieving development milestones. Such amounts entail uncertainties in relation to the period in which payments are due because a proportion of the obligations are dependent on milestone achievements. Exercise fees and subsequent milestone payments under in-licensing option agreements are excluded, as Novo Nordisk is not contractually obligated to make such payments. Commercial product launch milestones include contingent payments solely related to achievement of a commercial product launch following regulatory approval. Commercial milestones, royalties and other payments based on a percentage of sales generated from sale of goods following marketing approval are excluded from the contractual commitments analysis because of their contingent nature, related to future sales. The due periods disclosed are based on Management’s best estimate. The purchase obligations primarily relate to purchase agreements regarding medical equipment and consumer goods. Novo Nordisk expects to fund these commitments with existing cash and cash flow from operations. Other guarantees Other guarantees amounts to DKK 1,117 million (DKK 906 million in 2019). Other guarantees primarily relate to performance guarantees issued by Novo Nordisk. World Diabetes Foundation (WDF) At the Annual General Meeting in 2020, a donation to WDF was approved, thereby replacing the remaining five years of the former donation approved by the Annual General Meeting in 2014, which covered the period 2018-2024. For the years 2020-2024, the donation is calculated as 0.085% of Novo Nordisk's total Diabetes care net sales. The annual donation cannot exceed DKK 91 million in 2020, DKK 92 million in 2021, DKK 93 million in 2022, DKK 94 million in 2023, ending at DKK 95 million in 2024, or 15% of the taxable income of Novo Nordisk A/S in the financial year in question, whichever is the lowest. In addition, in 2020 Novo Nordisk A/S granted a special one-off contribution of DKK 50 million. 5.3 Related party transactions Material transactions with related parties DKK million 2020 2019 2018 Novo Holdings A/S Purchase of Novo Nordisk B shares 5,963 4,894 4,207 Sale of NNIT B shares — — (368) Dividend payment to Novo Holdings A/S 5,767 5,580 5,496 NNIT Group Services provided by NNIT 775 941 1,052 Dividend payment from NNIT (18) (20) (19) Novozymes Group Services provided by Novo Nordisk (113) (132) (115) Services provided by Novozymes 72 103 121 CS Solar Fund XIV Purchase of shares by Novo Nordisk — 97 — Liability for capital commitment 1 — 389 — Distribution by CS Solar Fund XIV — (385) — 1. The liability disclosed for 2019 related to capital commitment was paid in 2020 (DKK 392 million). Novo Nordisk A/S is controlled by Novo Holdings A/S (incorporated in Denmark), which owns 28.1% of the share capital in Novo Nordisk A/S, representing 76.5% of the total number of votes. The remaining shares are widely held. The ultimate parent of the Group is the Novo Nordisk Foundation (incorporated in Denmark). Both entities are considered related parties. As associated companies of Novo Nordisk A/S, NNIT Group and Churchill Stateside Solar Fund XIV, LLC ('CS Solar Fund XIV') are considered related parties. As an associated company of Novo Holdings A/S, Unchained Labs, Inc. is considered a related party to Novo Nordisk A/S. As they share a controlling shareholder, the Novozymes Group, Sonion Group and Xellia Pharmaceuticals are also considered to be related parties as well as the Board of Directors or Executive Management of Novo Nordisk A/S. In 2020, Novo Nordisk A/S acquired 14,025,000 B shares, worth DKK 6.0 billion, from Novo Holdings A/S as part of the DKK 17.0 billion share repurchase programme. The transaction price for each transaction was calculated as the average market price in the open windows following the announcements of the financial results for the four quarters in 2020. In Novo Nordisk A/S, there were no transactions with the Board of Directors or Executive Management besides remuneration. There were no other transactions with the Board of Directors or Executive Management of NNIT A/S, Novozymes A/S, Novo Holdings A/S, the Novo Nordisk Foundation, Xellia Pharmaceuticals ApS, Unchained Labs, Sonion A/S or CS Solar Fund XIV. For information on remuneration of the Management of Novo Nordisk, please refer to note 2.4, ‘Employee costs’. There were no loans to the Board of Directors or Executive Management in 2020, nor were there any in 2019 or 2018. There were no material unsettled balances with related parties at the end of the year. 5.4 Fee to statutory auditors DKK million 2020 2019 2018 Statutory audit 26 26 25 Audit-related services 3 4 3 Tax advisory services 9 11 11 Other services 4 4 3 Total fee to statutory auditors 42 45 42 Fees for services other than statutory audit of the financial statements amount to DKK 16 million (DKK 19 million in 2019 and DKK 17 million in 2018). PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab (PricewaterhouseCoopers Denmark) provided other services in the amount of DKK 9 million (DKK 12 million in 2019 and DKK 9 million in 2018), which relate to tax compliance and transfer pricing, educational training, review of ESG data, due diligence and other assurance assessments and opinions. 5.5 General accounting policies Principles of consolidation The consolidated financial statements incorporate the financial statements of the parent company Novo Nordisk A/S and entities controlled by Novo Nordisk A/S. Control exists when Novo Nordisk has effective power over the entity and has the right to variable returns from the entity. Where necessary, adjustments are made to bring the financial statements of subsidiaries in line with the Novo Nordisk Group's accounting policies. All intra-Group transactions, balances, income and expenses are eliminated in full when consolidated. The results of subsidiaries acquired or disposed of during the year are included in the consolidated income statement from the effective date of acquisition and up to the effective date of disposal. Translation of foreign currencies Functional and presentation currency Items included in the financial statements of Novo Nordisk's entities are measured using the currency of the primary economic environment in which the entity operates (functional currency). The consolidated financial statements are presented in Danish kroner (DKK), which is also the functional and presentation currency of the parent company. Translation of transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the transaction dates. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities are recognised in the income statement. Foreign currency differences arising from the translation of effective qualifying cash flow hedges are recognised in other comprehensive income. Translation of Group companies Financial statements of foreign subsidiaries are translated into DKK at the exchange rates prevailing at the end of the reporting period for balance sheet items, and at average exchange rates for income statement items. All effects of exchange rate adjustments are recognised in other comprehensive income, i.e.: – The translation of foreign subsidiaries’ net assets at the beginning of the year to the exchange rates at the end of the reporting period. – The translation of foreign subsidiaries’ statements of comprehensive income at average to year-end exchange rates. 5.6 Companies in the Novo Nordisk Group Activity: • Sales and marketing • Production • Research and development • Services/investments Company and country Percentage of shares owned Activity Parent company Novo Nordisk A/S, Denmark • • • • Subsidiaries by geographical area North America Operations Novo Nordisk Canada Inc., Canada 100 • Novo Nordisk Inc., United States 100 • Novo Nordisk North America Operations A/S, Denmark 100 • Novo Nordisk Pharmaceutical Industries LP, United States 100 • Novo Nordisk Pharma, Inc., United States 100 • Novo Nordisk Research Center Indianapolis, Inc., United States 100 • Novo Nordisk Research Center Seattle, Inc., United States 100 • Novo Nordisk US Bio Production, Inc., United States 100 • Novo Nordisk US Commercial Holdings, Inc., United States 100 • Novo Nordisk US Holdings Inc., United States 100 • Corvidia Therapeutics, Inc., United States 100 • Emisphere Technologies, Inc., United States 100 • International Operations Novo Nordisk Pharmaceuticals A/S, Denmark 100 • Novo Nordisk Pharma Operations A/S, Denmark 100 • • Novo Nordisk Region AAMEO and LATAM A/S, Denmark 100 • Novo Nordisk Region Europe A/S, Denmark 100 • Novo Nordisk Region Japan & Korea A/S, Denmark 100 • EMEA Aldaph SpA, Algeria 100 • • Novo Nordisk Pharma GmbH, Austria 100 • S.A. Novo Nordisk Pharma N.V., Belgium 100 • Novo Nordisk Pharma d.o.o., Bosnia and Herzegovina 100 • Novo Nordisk Pharma EAD, Bulgaria 100 • Novo Nordisk Hrvatska d.o.o., Croatia 100 • Novo Nordisk s.r.o., Czech Republic 100 • Novo Nordisk Denmark A/S, Denmark 100 • Novo Nordisk Pharmatech A/S, Denmark 100 • • Novo Nordisk Egypt LLC, Egypt 100 • Novo Nordisk Farma OY, Finland 100 • Novo Nordisk, France 100 • Novo Nordisk Production SAS, France 100 • Novo Nordisk Pharma GmbH, Germany 100 • Novo Nordisk Hellas Epe., Greece 100 • Novo Nordisk Hungária Kft., Hungary 100 • Novo Nordisk Biopharm Limited, Ireland 100 • • Novo Nordisk Limited, Ireland 100 • Company and country Percentage of shares owned Activity Novo Nordisk Ltd, Israel 100 • Novo Nordisk S.P.A., Italy 100 • Novo Nordisk Kazakhstan LLP, Kazakhstan 100 • Novo Nordisk Kenya Ltd., Kenya 100 • Novo Nordisk Pharma SARL, Lebanon 100 • UAB Novo Nordisk Pharma, Lithuania 100 • Novo Nordisk Farma dooel, North Macedonia 100 • Novo Nordisk Pharma SAS, Morocco 100 • Novo Nordisk B.V., Netherlands 100 • Novo Nordisk Pharma Limited, Nigeria 100 • Novo Nordisk Norway AS, Norway 100 • Novo Nordisk Pharmaceutical Services Sp. z o.o., Poland 100 • Novo Nordisk Pharma Sp.z.o.o., Poland 100 • Novo Nordisk Comércio Produtos Farmacêuticos Lda., Portugal 100 • Novo Nordisk Farma S.R.L., Romania 100 • Novo Nordisk Limited Liability Company, Russia 100 • Novo Nordisk Production Support LLC, Russia 100 • Novo Nordisk Pharma d.o.o. Belgrade (Serbia), Serbia 100 • Novo Nordisk Slovakia s.r.o., Slovakia 100 • Novo Nordisk, d.o.o., Slovenia 100 • Novo Nordisk (Pty) Limited, South Africa 100 • Novo Nordisk Pharma S.A., Spain 100 • Novo Nordisk Scandinavia AB, Sweden 100 • Novo Nordisk Health Care AG, Switzerland 100 • • Novo Nordisk Pharma AG, Switzerland 100 • Novo Nordisk Tunisie SARL, Tunisia 100 • Novo Nordisk Saglik Ürünleri Tic. Ltd. Sti., Turkey 100 • Novo Nordisk Ukraine, LLC, Ukraine 100 • Novo Nordisk Pharma Gulf FZ-LLC, United Arab Emirates 100 • Novo Nordisk Holding Limited, United Kingdom 100 • Novo Nordisk Limited, United Kingdom 100 • Ziylo Limited, United Kingdom 100 • Region China Novo Nordisk (China) Pharmaceuticals Co., Ltd., China 100 • • Novo Nordisk Region China A/S, Denmark 100 • Beijing Novo Nordisk Pharmaceuticals Science & Technology Co., Ltd., China 100 • Novo Nordisk Hong Kong Limited, Hong Kong 100 • Novo Nordisk Pharma (Taiwan) Ltd., Taiwan 100 • Company and country Percentage of shares owned Activity Rest of World Novo Nordisk Pharma Argentina S.A., Argentina 100 • Novo Nordisk Pharmaceuticals Pty. Ltd., Australia 100 • Novo Nordisk Pharma (Private) Limited, Bangladesh 100 • Novo Nordisk Produção Farmacêutica do Brasil Ltda., Brazil 100 • Novo Nordisk Farmacêutica do Brasil Ltda., Brazil 100 • Novo Nordisk Farmacéutica Limitada, Chile 100 • Novo Nordisk Colombia SAS, Colombia 100 • Novo Nordisk India Private Limited, India 100 • Novo Nordisk Service Centre (India) Pvt. Ltd., India 100 • PT. Novo Nordisk Indonesia, Indonesia 100 • Novo Nordisk Pars, Iran 100 • • Novo Nordisk Pharma Ltd., Japan 100 • • Novo Nordisk Pharma (Malaysia) Sdn Bhd, Malaysia 100 • Novo Nordisk Pharma Operations (Business Area) Sdn Bhd, Malaysia 100 • Novo Nordisk Mexico S.A. de C.V., Mexico 100 • Novo Nordisk Pharmaceuticals Ltd., New Zealand 100 • Novo Nordisk Pharma (Private) Limited, Pakistan 100 • Novo Nordisk Panama S.A., Panama 100 • Novo Nordisk Peru S.A.C., Peru 100 • Novo Nordisk Pharmaceuticals (Philippines) Inc., Philippines 100 • Novo Nordisk Pharma (Singapore) Pte Ltd., Singapore 100 • Novo Investment Pte Limited, Singapore 100 • Novo Nordisk Pharma Korea Ltd., South Korea 100 • Novo Nordisk Lanka (PVT) Ltd, Sri Lanka 100 • Novo Nordisk Pharma (Thailand) Ltd., Thailand 93 • Novo Nordisk Venezuela Casa de Representación C.A., Venezuela 100 • Other subsidiaries and associated companies NNE A/S, Denmark 100 • NNIT A/S, Denmark 18 • Churchill Stateside Solar Fund XIV, LLC, United States 99 • Companies without significant activities are not included in the list. NNE A/S subsidiaries are not included in the list. |
Basis of preparation (Policies)
Basis of preparation (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Adoption of new or amended IFRSs | Management has assessed the impact of new or amended and revised accounting standards and interpretations (IFRSs) issued by the IASB and IFRSs endorsed by the European Union effective on or after 1 January 2020. The Group adopted the amendments to IFRS 3 for the first time in 2020. The amendments narrow and clarify the definition of a business and permit a simplified assessment of whether an acquired set of activities and assets is a group of assets rather than a business (concentration test). The amendments are applied prospectively to all business combinations and asset acquisitions with an acquisition date on or after 1 January 2020. It is assessed that application of other new amendments effective from 1 January 2020 has not had a material impact on the consolidated financial statements in 2020. Furthermore, Management does not anticipate any significant impact on future periods from the adoption of these new amendments. Adoption of new or amended IFRSs in prior periods As of 1 January 2019, Novo Nordisk applied IFRS 16 'Leases' for the first time. The standard was implemented using the modified retrospective approach. On transition to IFRS 16 the Group recognised an additional DKK 3,778 million of right-of-use assets and DKK 3,988 million of lease liabilities. The implementation did not have any impact on equity. As of 1 January 2018, Novo Nordisk applied IFRS 9 'Financial Instruments' and IFRS 15 'Revenue from contracts with customers' for the first time. The impact of the implementation of IFRS 9 and IFRS 15 was immaterial in relation to recognition and measurement. |
Revenue recognition | Revenue from sale of goods is recognised when Novo Nordisk has transferred control of products sold to the buyer and it is probable that Novo Nordisk will collect the consideration to which it is entitled for transferring the products. Control of the products is transferred at a point in time, typically on delivery. The amount of sales to be recognised is based on the consideration Novo Nordisk expects to receive in exchange for its goods. When sales are recognised, Novo Nordisk also records estimates for a variety of sales deductions, including product returns as well as rebates and discounts to government agencies, wholesalers, health insurance companies, managed healthcare organisations and retail customers. Sales deductions are recognised as a reduction of gross sales to arrive at net sales, by assessing the expected value of the sales deductions (variable consideration). Where contracts contain customer acceptance criteria, Novo Nordisk recognises sales when the acceptance criteria are satisfied. In some markets, Novo Nordisk sells products on a sale-or-return basis. Where there is historical experience or a reasonably accurate estimate of future returns, estimated product returns are recorded as a reduction in sales. Where shipments of new products are made on a sale-or-return basis, without sufficient historical experience for estimating sales returns, revenue is recorded based on estimated demand and acceptance rates for well-established products with similar market characteristics. If similar market characteristics do not exist, revenue is recorded when there is evidence of consumption or when the right of return has expired. Unsettled rebates are recognised as provisions when the timing or amount is uncertain (note 3.6). Where absolute amounts are known, the rebates are recognised as other liabilities. Wholesaler charge-backs are netted against trade receivable balances. |
Operating segments | Operating segments are reported in a manner consistent with the internal reporting provided to Executive Management and the Board of Directors. We consider Executive Management to be the operating decision-making body, as all significant decisions regarding business development and direction are taken in this forum. Geographical areas Sales to external customers attributed to the US are collectively the most material to the Group. The US and Mainland China are the only territories where sales contribute 10% or more of total net sales. In 2020 Novo Nordisk operated in two main commercial units: – International Operations – EMEA: Europe, the Middle East and Africa. – China: Mainland China, Hong Kong and Taiwan. – Rest of World: All other countries except for North America. – North America Operations (the US and Canada) International Operations was reorganised with effect from 1 April 2020, and the geographical reporting has been amended to reflect the new organisation. Amounts for 2018 and 2019 have been restated. Refer to note 5.6 for an overview of companies in the Novo Nordisk Group based on geographical areas. The country of domicile is Denmark, which is part of EMEA. Denmark is immaterial to Novo Nordisk’s activities in terms of sales as 99.7 % of total sales are realised outside Denmark. Sales are attributed to geographical areas according to the location of the customer. |
Research and development costs | DKK million 2020 2019 2018 Employee costs (note 2.4) 6,269 5,968 6,288 Amortisation and impairment losses, intangible assets (note 3.1) 1,025 522 769 Depreciation and impairment losses, property, plant and equipment (note 3.1) 724 783 468 Other research and 7,444 6,947 7,280 Total research and development costs 15,462 14,220 14,805 As percentage of net sales 12.2 % 11.7 % 13.2 % Novo Nordisk expenses all research costs. In line with industry practice, internal and subcontracted development costs are also expensed as they are incurred, due to significant regulatory uncertainties and other uncertainties inherent in the development of new products. This means that they do not qualify for capitalisation as intangible assets until marketing approval by a regulatory authority is obtained or considered highly probable. Costs for post-approval activities that are required by authorities as a condition for obtaining regulatory approval are recognised as research and development costs. Research and development costs primarily comprise employee costs, and internal and external costs related to execution of studies, including manufacturing costs and facility costs of the research centres. The costs also comprise amortisation, depreciation and impairment losses related to software and property, plant and equipment used in the research and development activities. Impairment losses recognised on intangible assets not yet available for use related to research and development projects are presented in research and development costs. Certain research and development activities are recognised outside research and development costs: – Royalty expenses paid to partners after regulatory approval are expensed as cost of goods sold. – Royalty income received from partners is recognised as part of other operating income, net. – Contractual research and development obligations to be paid in the future are disclosed separately as commitments in note 5.2. |
Employee costs and Retirement benefit obligations | Wages, salaries, social security contributions, annual leave and sick leave, bonuses and non-monetary benefits are recognised in the year in which the associated services are rendered by employees of Novo Nordisk. Where Novo Nordisk provides long-term employee benefits, the costs are accrued to match the rendering of the services by the employees concerned Key assumptions used for valuation and sensitivity analysis DKK million Key assumptions 1%-point increase 1%-point decrease 2020 Discount rate (decrease)/increase 1.0 % (403) 523 Future remuneration growth (decrease)/increase 2.2 % 116 (101) 2019 Discount rate (decrease)/increase 1.3 % (366) 465 Future remuneration growth (decrease)/increase 2.4 % 105 (94) The sensitivities consider the single change shown, with the other assumptions assumed to be unchanged. The table shows the NPV impact of net retirement liabilities. Defined contribution plans Novo Nordisk operates a number of defined contribution plans throughout the world. These plans are externally funded in entities that are legally separate from the Group. Defined benefit plans In a few countries, Novo Nordisk operates defined benefit plans, primarily located in the US, Germany, Switzerland and Japan. In Germany and Switzerland, the defined benefit plans are partly reimbursed by international insurance companies. The risk related to the plan assets in these countries is therefore limited to counterparty risk against these insurance companies. The total cost recognised for the year amounts to DKK 138 million (DKK 151 million in 2019). The present value of partly funded retirement benefit obligations amounts to DKK 1,953 million (DKK 1,845 million in 2019). The present value of unfunded retirement benefit obligations amounts to DKK 671 million (DKK 663 million in 2019). Net remeasurement is a loss of DKK 67 million (loss of DKK 187 million in 2019), primarily related to changes in financial assumptions (discount rate), and is included in other comprehensive income. Please refer to note 5.2 for a maturity analysis of the net retirement benefit obligation. Novo Nordisk does not expect the contributions over the next five years to differ significantly from current contributions. Accounting policies Defined contribution plans Novo Nordisk’s contributions to the defined contribution plans are charged to the income statement in the year to which they relate. Defined benefit plans The costs for the year for defined benefit plans are determined using the projected unit credit method. This reflects services rendered by employees to the valuation dates and is based on actuarial assumptions primarily regarding discount rates used in determining the present value of benefits and projected rates of remuneration growth. Discount rates are based on the market yields of high-rated corporate bonds in the country concerned. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income in the period in which they arise. Past service costs are recognised immediately in the income statement. Pension plan assets are only recognised to the extent that Novo Nordisk is able to derive future economic benefits such as refunds from the plan or reductions of future contributions. Costs recognised for retirement benefits are included in cost of goods sold, sales and distribution costs, research and development costs, and administrative costs. The net obligation recognised in the balance sheet is reported as non-current liabilities. |
Divested subsidiaries | Other operating income, net, comprises licence income and income of a secondary nature in relation to the main activities of Novo Nordisk. Licence income from royalties on net sales is recognised as the underlying customers' sale occurs and from sales milestones once the contingent sale milestone is achieved in accordance with the terms of the relevant agreement. Income from the transfer of the right to use intellectual property may contain development or regulatory milestones (variable consideration) on which the income is recognised when the significant uncertainties in achieving the milestones are resolved, due to the significant uncertainties inherent in the development of pharmaceutical products. Operating profit from the wholly owned subsidiary NNE A/S, not related to Novo Nordisk’s main activities, is recognised as other operating income. Other operating income also includes income from sale of intellectual property rights. |
Other operating income, net | Operating profit from the wholly owned subsidiary NNE A/S, not related to Novo Nordisk’s main activities, is recognised as other operating income. Other operating income also includes income from sale of intellectual property rights. |
Income taxes | The tax expense for the period comprises current and deferred tax. It also includes adjustments to previous years and changes in provisions for uncertain tax positions. Tax is recognised in the income statement except to the extent that it relates to items recognised in equity or other comprehensive income. Provisions for ongoing tax disputes are included as part of deferred tax assets, tax receivables and tax payables. |
Deferred income taxes | Deferred income taxes arise from temporary differences between the accounting and tax values of the individual consolidated companies and from realisable tax loss carry-forwards. The tax value of tax loss carry-forwards is included in deferred tax assets to the extent that these are expected to be utilised in future taxable income. The deferred income taxes are measured according to current tax rules and at the tax rates assumed in the year in which the assets are expected to be utilised. In general, the Danish tax rules related to dividends from group companies provide exemption from tax for most repatriated profits. A provision for withholding tax is only recognised if a concrete distribution of dividends is planned. The unrecognised potential withholding tax amounts to DKK 337 million (DKK 315 million in 2019). The value of future tax deductions in relation to share programmes is recognised as deferred tax, until the shares are paid out to the employees. Any estimated excess tax deduction compared to the costs realised in the income statement is charged to equity. |
Intangible assets | Patents and licences, including patents and licences acquired for research and development projects, are carried at historical cost less accumulated amortisation and any impairment loss. Upfront fees and acquisition costs are capitalised and subsequent milestone payments payable on achievement of a contingent event will be capitalised on the contingent event being probable of being achieved. Amortisation is based on the straight-line method over the estimated useful life. This means the legal duration or the economic useful life depending on which is shorter, and not exceeding 15 years. The amortisation of patents and licences begins after regulatory approval has been obtained. Internal development of software for internal use are recognised as intangible assets if the recognition criteria are met, for example a significant business system where the expenditure leads to the creation of a durable asset. Amortisation is based on the straight-line method over the estimated useful life of 3-15 years. The amortisation begins when the asset is in the location and condition necessary for it to be capable of operating in the manner intended by Management. Research and development projects Internal and subcontracted research costs are charged in full to the consolidated income statement in the period in which they are incurred. Consistent with industry practice, development costs are also expensed until regulatory approval is obtained or is probable; please refer to note 2.3. Payments to third parties under collaboration and licence agreements are assessed for the substance of their nature. Payments which represent subcontracted research and development are expensed as the services are received. Payments which represent rights to the transfer of intellectual property, developed at risk by the third party, are capitalised. For acquired research and development projects, patents and licences, the likelihood of obtaining future commercial sales is reflected in the cost of the asset, and thus the probability recognition criteria is always considered to be satisfied. As the cost of acquired research and development projects can often be measured reliably, these projects fulfil the capitalisation criteria as intangible assets on acquisition. Subsequent milestone payments payable on achievement of a contingent event (e.g. commencement of phase 3 trials) are accrued and capitalised into the cost of the intangible asset when the achievement of the event is probable. Development costs incurred subsequent to acquisition are treated consistently with internal project development costs. 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. – Changes in the legal framework covering patents, rights and licences – Advances in medicine and/or technology that affect the medical treatments. – Lower-than-predicted sales. – 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 – Changes or anticipated changes in participation rates or reimbursement policies. If the carrying amount of intangible assets exceeds the recoverable amount based on the existence of one or more of the above indicators of impairment, any impairment is measured based on discounted projected cash flows. Impairments are reviewed at each reporting date for possible reversal. Key accounting estimates and judgements on intangible assets In 2020, an impairment loss of DKK 350 million (DKK 982 million in 2019) was recognised, substantially all of which related to patents and licences. DKK 350 million (DKK 282 million in 2019) of the impairment was related to the Diabetes and Obesity care segment and none related to Biopharm (DKK 700 million in 2019). All the impairment loss in 2020 was recognised in research and development costs (DKK 529 million in cost of goods sold and DKK 450 million in research and development costs in 2019). The impairment was a result of Management’s review of expectations related to patents and licences not yet in use. No impairment related to marketable products was identified in 2020. Intangible assets with an indefinite useful life and intangible assets not yet available for use are not subject to amortisation. They are tested annually for impairment, irrespective of whether there is any indication that they may be impaired. Intangible assets not yet being amortised amounts to DKK 9,607 million (DKK 3,380 million in 2019), primarily patents and licences in relation to research and development projects. Impairment tests in 2020 and 2019 of patents and licences not yet in use are based on Management’s projections and anticipated net present value of estimated future cash flows from marketable products. Terminal values used are based on the expected life of products, forecasted life cycle and cash flow over that period, and the useful life of the underlying assets. In addition, Management makes judgements related to intangible assets when assessing whether a transaction is a business combination or an asset acquisition. An asset acquisition will arise when substantially all the transaction value is concentrated in a single asset or when there are no substantive business processes in the acquired entity. Judgements are also made in evaluating whether payments under collaboration arrangements are acquisition of assets or prepayment of R&D services. |
Property, plant and equipment | Property, plant and equipment is measured at historical cost less accumulated depreciation and any impairment loss. The cost of self-constructed assets includes costs directly and indirectly attributable to the construction of the assets. Any subsequent cost is included in the asset’s carrying amount or recognised as a separate asset only when it is probable that future economic benefits associated with the item will flow to Novo Nordisk and the cost of the item can be measured reliably. Depreciation is based on the straight-line method over the estimated useful lives of the assets (buildings: 12-50 years, plant and machinery: 5-25 years and other equipment: 3-10 years. Land is not depreciated).The depreciation commences when the asset is available for use, i.e. when it is in the location and condition necessary for it to be capable of operating in the manner intended by Management. The assets’ residual values and useful lives are reviewed and adjusted, if appropriate, at the end of each reporting period. If an asset’s carrying amount is higher than its estimated recoverable amount, it is written down to the recoverable amount. Plant and equipment with no alternative use developed as part of a research and development project are expensed. However, plant and equipment with an alternative use or used for general research and development purposes are capitalised and depreciated over the estimated useful life as research and development costs. |
Leases | Novo Nordisk mainly leases office buildings, warehouses, laboratories and vehicles. The right-of-use asset is presented in property, plant and equipment and the lease liability in borrowings. For contracts which are, or contain, a lease, the Group recognises a right-of-use asset and a lease liability. The right-of-use asset is initially measured at cost, being the initial amount of the lease liability. The right-of-use asset is subsequently depreciated using the straight-line method over the lease term. The right-of-use asset is periodically adjusted for certain remeasurements of the lease liability and reduced by any impairment losses. The lease term determined by the Group is the non-cancellable period of a lease, together with extension/termination option if these are reasonably certain to be exercised. When determining the term, Management considers multiple factors that create economic incentives to exercise an option to extend the lease or not to terminate the lease, including termination penalties, potential relocation costs and whether significant leasehold improvements have been capitalised on the lease, with a remaining useful life which exceeds the fixed minimum duration of the lease. For contracts with a rolling term (evergreen leases), the Group estimates the leasing period to be equal to the termination period if no probable scenario exists for estimating the leasing period. The lease liability is initially measured at the present value of the lease payments outstanding at the commencement date, discounted using the incremental borrowing rate. The lease liability is measured using the effective interest method. Variable lease payments not based on an index or a rate are recognised as an expense in the income statement as incurred. Residual value guarantees that are expected to be paid are included in the initial measurement of the lease liability. The lease liability is remeasured when there is a change in future lease payments, typically due to a change in index or rate (e.g. inflation) on property leases, or if there is a reassessment of whether an extension or termination option will be exercised. A corresponding adjustment is made to the right-of-use asset, or in the income statement when the right-of-use asset has been fully depreciated. New lease contracts with a lease term of 12 months or less and lease of low value assets are not recognised on the balance sheet. These are expensed on a straight-line basis over the lease term or another systematic basis. Lease of low value assets include personal computers, telephones and small items of office equipment. |
Inventories | Inventories are stated at cost or net realisable value, whichever is lower. Cost is determined using the first-in, first-out method. Cost comprises direct production costs such as raw materials, consumables and labour as well as indirect production costs. Production costs for work in progress and finished goods include indirect production costs such as employee costs, depreciation, maintenance, etc. If the expected sales price less completion costs to execute sales (net realisable value) is lower than the carrying amount, a write-down is recognised for the amount by which the carrying amount exceeds its net realisable value. Inventory manufactured prior to regulatory approval (prelaunch inventory) is capitalised but immediately provided for, until there is a high probability of regulatory approval for the product. A write-down is made against inventory, and the cost is recognised in the income statement as research and development costs. Once there is a high probability of regulatory approval being obtained, the write-down is reversed, up to no more than the original cost. |
Trade receivables | Trade receivables are initially recognised at transaction price and subsequently measured at amortised cost using the effective interest method, less allowance for doubtful trade receivables. The allocation of trade receivables and allowance for trade receivables is based on the location of the customer. Before being sold, trade receivables in factoring portfolios are measured at fair value with changes recognised in other comprehensive income. The allowance for doubtful receivables is deducted from the carrying amount of trade receivables, and the amount of the loss is recognised in the income statement under sales and distribution costs. Subsequent recoveries of amounts previously written off are credited against sales and distribution costs. Novo Nordisk’s customer base comprises government agencies, wholesalers, retail pharmacies and other customers. Management makes allowance for doubtful trade receivables based on the simplified approach to provide for expected credit losses, which permits the use of the lifetime expected loss provision for all trade receivables. The allowance is an estimate based on shared credit risk characteristics and the days past due. Generally, invoices are due for payment within 90 days from shipment of goods. Loss allowance is calculated using an ageing factor, geographical risk and specific customer knowledge. The allowance is based on a provision matrix on days past due and a forward looking-element relating mainly to incorporation of the Dun & Bradstreet country risk rating and an individual assessment. Please refer to note 4.2 for a general description of credit risk. |
Provisions and contingent liabilities | Provisions for sales rebates and discounts granted to government agencies, wholesalers, retail pharmacies, Managed Care and other customers are recorded at the time the related revenues are recorded or when the incentives are offered. Provisions are calculated based on historical experience and the specific terms in the individual agreements. Unsettled rebates are recognised as provisions when the timing or amount is uncertain. Where absolute amounts are known, the rebates are recognised as other liabilities. Please refer to note 2.1 for further information on sales rebates and provisions. Provisions for legal disputes are recognised where a legal or constructive obligation has been incurred as a result of past events and it is probable that there will be an outflow of resources that can be reliably estimated. In this case, Novo Nordisk arrives at an estimate based on an evaluation of the most likely outcome. Disputes for which no reliable estimate can be made are disclosed as contingent liabilities. Provisions are measured at the present value of the anticipated expenditure for settlement. This is calculated using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision for interest is recognised as a financial expense. Novo Nordisk issues credit notes for expired goods as a part of normal business. Where there is historical experience or a reasonably accurate estimate of expected future returns can otherwise be made, a provision for estimated product returns is recorded. The provision is measured at gross sales value. |
Treasury shares | Treasury shares are primarily acquired to reduce the company’s share capital. In addition, a limited part is used to finance Novo Nordisk’s long-term share-based incentive programme (restricted stock units) and restricted stock units to employees. Treasury shares are deducted from the share capital on cancellation at their nominal value of DKK 0.20 per share. Differences between this amount and the amount paid to acquire or received for disposing of treasury shares are deducted directly in equity. |
Earnings per share | Earnings per share is presented as both basic and diluted earnings per share. Basic earnings per share is calculated as net profit divided by the monthly average number of shares outstanding. Diluted earnings per share is calculated as net profit divided by the sum of monthly average number of shares outstanding, including the dilutive effect of the outstanding share pool. Please refer to ‘Financial definitions’ for a description of calculation of the dilutive effect. |
Derivative financial instruments | Derivative financial instruments 2020 2019 DKK million Contract Positive Negative Contract Positive Negative Forward contracts USD 1 29,110 1,658 — 25,394 81 315 Forward contracts CNH, JPY, GBP and CAD 10,291 191 47 10,013 35 130 Forward contracts, cash flow hedges 39,401 1,849 47 35,407 116 445 Forward contracts USD 19,411 379 1,307 11,287 61 217 Forward contracts CNH, CAD, EUR, GBP and JPY 4,578 104 11 3,761 11 72 Forward contracts, fair value hedges 23,989 483 1,318 15,048 72 289 Total derivative financial instruments 63,390 2,332 1,365 50,455 188 734 Recognised in the income statement 483 1,318 72 289 Recognised in other comprehensive income 2 1,849 47 116 445 1. Average hedge rate for USD cash flow hedges is 640 at the end of 2020 and 654 at the end of 2019. 2. The fair value of cash flow hedges at year-end 2020, DKK 1,802 million, is recognised in other comprehensive income. In addition DKK 418 million in cash flow hedge losses on intangible asset purchases has been incurred for a total 2020 other comprehensive impact of DKK 1,384 million. The DKK 418 million deferred loss was transferred directly from the cash flow hedge reserve to the initial cost of the intangible assets. Novo Nordisk uses financial instruments to reduce the impact of foreign exchange on financial results. Use of derivative financial instruments The derivative financial instruments are used to manage the exposure to market risk. None of the derivatives are held for trading. Novo Nordisk uses forward exchange contracts and, to a lesser extent, currency options to hedge forecast transactions, assets and liabilities. The overall policy is to hedge the majority of total currency exposure. Net investments in foreign subsidiaries are currently not hedged. Initial recognition and measurement On initiation of the contract, Novo Nordisk designates each derivative financial contract that qualifies for hedge accounting as one of: – hedges of the fair value of a recognised asset or liability (fair value hedge) – hedges of the fair value of a forecast financial transaction (cash flow hedge). All contracts are initially recognised at fair value and subsequently remeasured at fair value at the end of the reporting period. Fair value hedges Value adjustments of fair value hedges are recognised in the income statement along with any value adjustments of the hedged asset or liability that are attributable to the hedged risk. Cash flow hedges Value adjustments of the effective part of cash flow hedges are recognised directly in other comprehensive income. The cumulative value adjustment of these contracts is transferred from other comprehensive income to the income statement when the hedged transaction is recognised in the income statement. For cash flow hedges of foreign currency risk on highly probable non-financial asset purchases, the cumulative value adjustments are transferred directly from the cash flow hedge reserve to the initial cost of the asset when recognised. Discontinuance of cash flow hedging When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognised when the forecast transaction is ultimately recognised in the income statement. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the income statement under financial income or financial expenses. Fair value determination The fair value of derivative financial instruments is measured on the basis of quoted market prices of financial instruments traded in active markets. If an active market exists, the fair value is based on the most recently observed market price at the end of the reporting period. If a financial instrument is quoted in a market that is not active, Novo Nordisk bases its valuation on the most recent transaction price. Adjustment is made for subsequent changes in market conditions, for instance by including transactions in similar financial instruments assumed to be motivated by normal business considerations. |
Cash and cash equivalents, financial resources and free cash flow | The cash flow statement is presented in accordance with the indirect method commencing with net profit for the year. Cash flows in foreign currencies are translated to DKK at the average exchange rate for the respective year. Cash from operating activities converts income statement items from the accrual basis of accounting to cash basis. As such, starting with net profit, non-cash items are reversed and actual payments included. The change in working capital is also taken into account, as this shows the development in money tied up in the balance sheet. Cash from investing activities shows payments related to the purchase and sale of Novo Nordisk’s long-term investments. This includes fixed assets such as construction of new production sites, intangible assets such as patents and licences, and financial assets. Cash and cash equivalents consists of cash offset by short-term bank overdrafts. Where short-term bank overdrafts are consistently overdrawn, they are excluded from cash and cash equivalents. The movement in such facilities is presented under financing activities in the cash flow statement. Financial reserves comprise the sum of cash and cash equivalents at the end of the year and undrawn committed credit and loan facilities, with a maturity of more than 12 months, less loans and bank overdrafts classified as liabilities arising from financing activities contractually obliged for repayment within 12 months of the balance sheet date. |
Working capital | Working capital is defined as current assets less current liabilities and measures the liquid assets Novo Nordisk has available for the business. |
Financial assets | Depending on purpose, Novo Nordisk classifies investments into the following categories: – Financial assets at fair value through the income statement – Financial assets at amortised cost – Financial assets at fair value through OCI Management determines the classification of its financial assets on initial recognition and re-evaluates this at the end of every reporting period to the extent that such a classification is permitted or required. Recognition and measurement Purchases and sales of financial assets are recognised on the settlement date. These are initially recognised at fair value. Fair value disclosures are made separately for each class of financial instruments at the end of the reporting period. Financial assets are removed from the balance sheet when the rights to receive cash flows have expired or have been transferred, and Novo Nordisk has transferred substantially all the risks and rewards of ownership. Financial assets 'at fair value through the income statement' Financial assets at fair value through the income statement consist of equity investments and forward exchange contracts. Equity investments are included in other financial assets unless management intends to dispose of the investment within 12 months of the end of the reporting period. In that case, the current part is included in other receivables and prepayments. Net gains and losses arising from changes in the fair value of financial assets are recognised in the income statement as financial income or expenses. The fair values of quoted investments are based on current bid prices at the end of the reporting period. Financial assets for which no active market exists are carried at fair value based on a valuation methodology. Financial assets 'at amortised cost' Financial assets at amortised cost are cash at bank and non-derivative financial assets solely with payments of principal and interest. Novo Nordisk normally 'holds-to-collect' the financial assets to attain the contractual cash flows. If collection is expected within one year (or in the normal operating cycle of the business if longer), they are classified as current assets. If not, they are presented as non-current assets. Trade receivables are initially recognised at transaction price and other receivables are recognised initially at fair value. Subsequently they are measured at amortised cost using the effective interest method, less allowance for doubtful receivables. Financial assets 'at fair value through other comprehensive income' Financial assets at fair value through other comprehensive income are trade receivables that are held to collect or to sell in factoring agreements. |
Financial liabilities | Financial liabilities 'at fair value through the income statement' Financial liabilities at fair value through the income statement consist of forward exchange contracts. Financial liabilities 'at amortised cost' |
Financial income and expenses | As described in note 4.2 Management has chosen to classify the result of hedging activities as part of financial items in the income statement except for cash flow hedges of foreign currency risk 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. Finally, value adjustments of foreign currency assets and liabilities in non-hedged currencies will impact financial income and financial expenses. |
Share-based compensation | Share-based compensation Novo Nordisk operates equity-settled, share-based compensation plans. The fair value of the employee services received in exchange for the grant of shares is recognised as an expense and allocated over the vesting period. The total amount to be expensed over the vesting period is determined by reference to the fair value of the shares granted, excluding the impact of any non-market vesting conditions. The fair value is fixed at the grant date, and adjusted for expected dividends during the vesting period. Non-market vesting conditions are included in assumptions about the number of shares that are expected to vest. At the end of each reporting period, Novo Nordisk revises its estimates of the number of shares expected to vest. Novo Nordisk recognises the impact of the revision of the original estimates, if any, in the income statement and in a corresponding adjustment to equity (change in proceeds) over the remaining vesting period. Adjustments relating to prior years are included in the income statement in the year of adjustment. |
Principles of consolidation | The consolidated financial statements incorporate the financial statements of the parent company Novo Nordisk A/S and entities controlled by Novo Nordisk A/S. Control exists when Novo Nordisk has effective power over the entity and has the right to variable returns from the entity. Where necessary, adjustments are made to bring the financial statements of subsidiaries in line with the Novo Nordisk Group's accounting policies. All intra-Group transactions, balances, income and expenses are eliminated in full when consolidated. The results of subsidiaries acquired or disposed of during the year are included in the consolidated income statement from the effective date of acquisition and up to the effective date of disposal. |
Translation of foreign currencies | Functional and presentation currency Items included in the financial statements of Novo Nordisk's entities are measured using the currency of the primary economic environment in which the entity operates (functional currency). The consolidated financial statements are presented in Danish kroner (DKK), which is also the functional and presentation currency of the parent company. Translation of transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the transaction dates. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities are recognised in the income statement. Foreign currency differences arising from the translation of effective qualifying cash flow hedges are recognised in other comprehensive income. Translation of Group companies Financial statements of foreign subsidiaries are translated into DKK at the exchange rates prevailing at the end of the reporting period for balance sheet items, and at average exchange rates for income statement items. All effects of exchange rate adjustments are recognised in other comprehensive income, i.e.: – The translation of foreign subsidiaries’ net assets at the beginning of the year to the exchange rates at the end of the reporting period. |
Basis of preparation (Tables)
Basis of preparation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Key Accounting Estimates and Judgements | Principal accounting policies Key accounting estimates and judgements Note Estimation risk US net sales and rebates Estimate of US sales deductions and provisions for sales rebates 2.1 High Income taxes and deferred income taxes Judgement and estimate regarding deferred income tax assets and provision for uncertain tax positions 2.6 Medium Intangible assets Estimate regarding impairment of assets and judgement of whether a transaction is an asset acquisition or a business combination 3.1 Low Inventories Estimate of indirect production costs capitalised and inventory write-down 3.3 Low Provisions and contingent liabilities Estimate of ongoing legal disputes, litigation and investigations 3.6 Medium |
Results for the year (Tables)
Results for the year (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Analysis of income and expense [abstract] | |
Gross-To-Net Sales Reconciliation | Gross-to-net sales reconciliation DKK million 2020 2019 2018 Gross sales 298,187 270,431 230,701 US Managed Care and Medicare (96,716) (84,202) (65,207) US wholesaler charge-backs (37,036) (33,772) (29,469) US Medicaid rebates (17,307) (14,365) (11,950) Other US discounts and sales returns (10,867) (8,280) (6,606) Non-US rebates, discounts and sales returns (9,315) (7,791) (5,638) Total gross-to-net sales adjustments (171,241) (148,410) (118,870) Net sales 126,946 122,021 111,831 |
Provisions for sales rebates | Provisions for sales rebates DKK million 2020 2019 2018 At the beginning of the year 30,878 25,760 20,374 Additional provisions, including increases to existing provisions 111,921 102,782 82,631 Amount paid during the year (106,116) (98,655) (78,647) Adjustments, including unused amounts reversed during the year 166 381 386 Effect of exchange rate adjustment (2,797) 610 1,016 At the end of the year 34,052 30,878 25,760 DKK million Provisions for sales rebates 1 Provisions Provisions Other provi- sions 2 2020 2019 At the beginning of the year 30,878 2,375 1,082 1,398 35,733 29,553 Additional provisions, including increases to existing provisions 111,921 662 413 814 113,810 104,621 Amount used during the year (106,116) (364) (694) (46) (107,220) (99,244) Adjustments, including unused amounts reversed during the year 166 — (6) (82) 78 148 Effect of exchange rate adjustment (2,797) (222) — (42) (3,061) 655 At the end of the year 34,052 2,451 795 2,042 39,340 35,733 Non-current liabilities 3 301 2,209 293 1,723 4,526 4,613 Current liabilities 33,751 242 502 319 34,814 31,120 1. Provisions for sales rebates are related to US Managed Care, Medicare, Medicaid and other minor US rebate types, as well as rebates in a number of European countries and Canada. 2. Other provisions consists of various types of provision, including obligations in relation to employee benefits such as jubilee benefits, company-owned life insurance, etc. 3. For non-current liabilities, provision for sales rebates is expected to be settled after one year, provisions for product returns will be utilised in 2022 and 2023. In the case of provisions for legal disputes, the timing of settlement cannot be determined. |
Information by Business Segment | Business segments – Key figures Diabetes and Obesity care Biopharm Total DKK million 2020 2019 2018 2020 2019 2018 2020 2019 2018 Total net sales 108,020 102,840 93,904 18,926 19,181 17,927 126,946 122,021 111,831 Cost of goods sold 17,715 16,309 14,716 3,217 3,779 2,901 20,932 20,088 17,617 Sales and distribution costs 29,903 28,729 26,396 3,025 3,094 3,001 32,928 31,823 29,397 Research and development costs 13,535 12,128 12,222 1,927 2,092 2,583 15,462 14,220 14,805 Administrative costs 3,387 3,346 3,266 571 661 650 3,958 4,007 3,916 Other operating income, net 264 309 538 196 291 614 460 600 1,152 Operating profit 43,744 42,637 37,842 10,382 9,846 9,406 54,126 52,483 47,248 Operating margin 40.5 % 41.5 % 40.3 % 54.9 % 51.3 % 52.5 % 42.6 % 43.0 % 42.2 % Depreciation, amortisation and impairment losses expensed 4,624 3,916 3,210 1,129 1,745 715 5,753 5,661 3,925 Novo Nordisk operates in two business segments based on therapies: Diabetes and Obesity care and Biopharm, representing the entirety of the Group's operations. The segments include research, development, manufacturing and marketing of products within the following areas – Diabetes and Obesity care: insulin, GLP-1 and related delivery systems, oral antidiabetic products (OAD), obesity and other serious chronic diseases. – Biopharm: haemophilia, growth disorders and hormone replacement therapy. Segment performance is evaluated on the basis of operating profit, consistent with the consolidated financial statements. Financial income and expenses, and income taxes are managed at Group level and are not allocated to business segments. There are no sales or other transactions between the business segments. Costs have been split between business segments according to a specific allocation. In addition, a small number of corporate overhead costs are allocated systematically between the segments. Other operating income has been allocated to the two segments based on the same principle. Accounting policies Operating segments are reported in a manner consistent with the internal reporting provided to Executive Management and the Board of Directors. We consider Executive Management to be the operating decision-making body, as all significant decisions regarding business development and direction are taken in this forum. Geographical areas Sales to external customers attributed to the US are collectively the most material to the Group. The US and Mainland China are the only territories where sales contribute 10% or more of total net sales. In 2020 Novo Nordisk operated in two main commercial units: – International Operations – EMEA: Europe, the Middle East and Africa. – China: Mainland China, Hong Kong and Taiwan. – Rest of World: All other countries except for North America. – North America Operations (the US and Canada) International Operations was reorganised with effect from 1 April 2020, and the geographical reporting has been amended to reflect the new organisation. Amounts for 2018 and 2019 have been restated. Refer to note 5.6 for an overview of companies in the Novo Nordisk Group based on geographical areas. The country of domicile is Denmark, which is part of EMEA. Denmark is immaterial to Novo Nordisk’s activities in terms of sales as 99.7 % of total sales are realised outside Denmark. Sales are attributed to geographical areas according to the location of the customer. Net sales – Business segments and geographical areas Total International Operations Total North America Operations Total Novo Nordisk Total IO EMEA China Rest of World Total NAO Of which the US DKK million 2020 2019 2018 2020 2019 2018 2020 2019 2018 2020 2019 2018 2020 2019 2018 2020 2019 2018 2020 2019 2018 Diabetes and Obesity care segment: Long-acting insulin 9,959 9,035 7,942 6,451 5,955 5,289 1,471 1,059 814 2,037 2,021 1,839 8,480 11,741 12,902 7,962 11,271 12,600 18,439 20,776 20,844 – of which Tresiba ® 4,407 3,477 2,764 2,574 1,983 1,479 418 87 16 1,415 1,407 1,269 4,561 5,782 5,271 4,191 5,500 5,192 8,968 9,259 8,035 – of which Xultophy ® 1,789 1,493 1,085 1,605 1,407 1,060 1 — — 183 86 25 655 717 529 642 708 528 2,444 2,210 1,614 – of which Levemir ® 3,763 4,065 4,093 2,272 2,565 2,750 1,052 972 798 439 528 545 3,264 5,242 7,102 3,129 5,063 6,880 7,027 9,307 11,195 Premix insulin 10,246 9,707 8,862 2,959 3,160 3,034 4,852 4,306 3,783 2,435 2,241 2,045 679 871 1,332 652 839 1,294 10,925 10,578 10,194 – of which Ryzodeg ® 1,291 993 714 321 237 152 39 4 — 931 752 562 — — — — — — 1,291 993 714 – of which NovoMix ® /NovoLog Mix ® 8,955 8,714 8,148 2,638 2,923 2,882 4,813 4,302 3,783 1,504 1,489 1,483 679 871 1,332 652 839 1,294 9,634 9,585 9,480 Fast-acting insulin 10,808 10,304 9,332 6,584 6,422 5,931 2,075 1,753 1,450 2,149 2,129 1,951 7,505 8,999 10,021 7,101 8,592 9,634 18,313 19,303 19,353 – of which Fiasp ® 832 617 357 764 585 357 — — — 68 32 — 553 626 233 519 597 211 1,385 1,243 590 – of which NovoRapid ® /NovoLog ® 9,976 9,687 8,975 5,820 5,837 5,574 2,075 1,753 1,450 2,081 2,097 1,951 6,952 8,373 9,788 6,582 7,995 9,423 16,928 18,060 18,763 Human insulin 7,339 7,361 7,348 2,370 2,438 2,592 2,655 2,847 2,821 2,314 2,076 1,935 1,534 1,675 1,917 1,431 1,552 1,778 8,873 9,036 9,265 Total insulin 38,352 36,407 33,484 18,364 17,975 16,846 11,053 9,965 8,868 8,935 8,467 7,770 18,198 23,286 26,172 17,146 22,254 25,306 56,550 59,693 59,656 Victoza ® 7,095 7,249 6,240 4,251 4,713 4,337 1,033 898 521 1,811 1,638 1,382 11,652 14,685 18,093 11,292 14,217 17,561 18,747 21,934 24,333 Ozempic ® 3,634 1,143 39 3,112 969 39 10 — — 512 174 — 17,577 10,094 1,757 16,650 9,599 1,634 21,211 11,237 1,796 Rybelsus ® 36 — — 36 — — — — — — — — 1,837 50 — 1,826 50 — 1,873 50 — Total GLP-1 10,765 8,392 6,279 7,399 5,682 4,376 1,043 898 521 2,323 1,812 1,382 31,066 24,829 19,850 29,768 23,866 19,195 41,831 33,221 26,129 Other Diabetes care 2,946 3,389 3,360 725 1,052 1,064 1,546 1,647 1,672 675 690 624 1,085 858 890 943 705 733 4,031 4,247 4,250 Total Diabetes care 52,063 48,188 43,123 26,488 24,709 22,286 13,642 12,510 11,061 11,933 10,969 9,776 50,349 48,973 46,912 47,857 46,825 45,234 102,412 97,161 90,035 Obesity care (Saxenda ® ) 2,118 2,083 1,211 1,124 981 547 10 9 1 984 1,093 663 3,490 3,596 2,658 3,230 3,348 2,446 5,608 5,679 3,869 Diabetes and Obesity care total 54,181 50,271 44,334 27,612 25,690 22,833 13,652 12,519 11,062 12,917 12,062 10,439 53,839 52,569 49,570 51,087 50,173 47,680 108,020 102,840 93,904 Biopharm segment: Haemophilia 5,708 5,946 5,572 3,579 3,646 3,604 361 284 199 1,768 2,016 1,769 3,954 4,335 4,004 3,675 4,031 3,723 9,662 10,281 9,576 – of which NovoSeven ® 3,996 4,502 4,424 2,352 2,577 2,694 345 269 194 1,299 1,656 1,536 3,207 3,617 3,457 3,089 3,454 3,278 7,203 8,119 7,881 – of which NovoEight ® 1,127 1,143 1,046 790 844 836 16 15 5 321 284 205 335 382 308 312 358 291 1,462 1,525 1,354 Growth disorders (Norditropin ® ) 4,832 4,225 4,000 2,220 1,960 1,972 66 36 20 2,546 2,229 2,008 2,872 3,050 2,834 2,854 3,035 2,823 7,704 7,275 6,834 Other Biopharm 1,108 1,122 1,017 886 912 817 5 5 4 217 205 196 452 503 500 208 247 262 1,560 1,625 1,517 Biopharm total 11,648 11,293 10,589 6,685 6,518 6,393 432 325 223 4,531 4,450 3,973 7,278 7,888 7,338 6,737 7,313 6,808 18,926 19,181 17,927 Total sales by geographical area 65,829 61,564 54,923 34,297 32,208 29,226 14,084 12,844 11,285 17,448 16,512 14,412 61,117 60,457 56,908 57,824 57,486 54,488 126,946 122,021 111,831 Total sales growth as reported 6.9 % 12.1 % 2.3 % 6.5 % 10.2 % 2.5 % 9.7 % 13.8 % 5.4 % 5.7 % 14.6 % (0.3 %) 1.1 % 6.2 % (1.9 %) 0.6 % 5.5 % (2.4 %) 4.0 % 9.1 % 0.1 % |
Research and Development Costs | DKK million 2020 2019 2018 Employee costs (note 2.4) 6,269 5,968 6,288 Amortisation and impairment losses, intangible assets (note 3.1) 1,025 522 769 Depreciation and impairment losses, property, plant and equipment (note 3.1) 724 783 468 Other research and 7,444 6,947 7,280 Total research and development costs 15,462 14,220 14,805 As percentage of net sales 12.2 % 11.7 % 13.2 % |
Employee Costs and Remuneration to Executive Management and Board of Directors | DKK million 2020 2019 2018 Wages and salaries 26,778 25,335 25,259 Share-based payment costs (note 5.1) 823 363 414 Pensions – defined contribution plans 1,961 1,910 1,791 Pensions – defined benefit plans (note 3.5) 138 151 73 Other social security contributions 1,862 1,963 1,901 Other employee costs 2,044 2,203 2,087 Total employee costs for the year 33,606 31,925 31,525 Employee costs capitalised as intangible assets and property, plant and equipment (1,279) (1,314) (1,500) Change in employee costs capitalised as inventories (60) (139) (105) Total employee costs 32,267 30,472 29,920 Included in the income statement: Cost of goods sold 8,896 8,134 8,164 Sales and distribution costs 14,146 13,463 12,214 Research and development costs 6,269 5,968 6,288 Administrative costs 2,848 2,679 2,755 Other operating income, net 108 228 499 Total employee costs in the 32,267 30,472 29,920 Number of employees 2020 2019 2018 Average number of 43,759 42,218 42,881 Year-end number of 44,723 42,703 42,672 Employees (total) 45,323 43,258 43,202 Remuneration to Executive Management and Board of Directors DKK million 2020 2019 2018 Salary and short-term incentive 119 120 102 Pension 26 26 22 Benefits 10 14 4 Long-term incentive 1 52 40 22 Severance payments — — 28 Executive Management in total 2 207 200 178 Fee to Board of Directors 2 17 19 17 Total 224 219 195 1. Please refer to note 5.1 for further information. 2. Total remuneration for registered members of Executive Management amounts to DKK 141 million (DKK 135 million in 2019 and DKK 142 million in 2018). All members of the Board of Directors are registered. |
Income Taxes Expensed and Paid | Income taxes expensed DKK million 2020 2019 2018 Current tax on profit for the year 11,557 11,275 10,469 Deferred tax on profit for the year 1,105 (1,559) (1,007) Tax on profit for the year 12,662 9,716 9,462 Current tax adjustments recognised for prior years (563) (191) (522) Deferred tax adjustments recognised for prior years (1,107) 77 47 Income taxes in the 10,992 9,602 8,987 Tax on other comprehensive 577 231 (755) Income taxes paid DKK million 2020 2019 2018 Income taxes paid in Denmark for current year 4,262 7,774 6,640 Income taxes paid outside Denmark for current year 4,508 2,258 2,376 Income taxes paid/repayments relating to prior years 1,336 904 598 Income taxes paid 10,106 10,936 9,614 |
Computation of Effective Tax Rate | Computation of effective tax rate DKK million 2020 2019 2018 Statutory corporate income tax rate in Denmark 22.0 % 22.0 % 22.0 % Deviation in foreign subsidiaries’ tax rates compared to the Danish tax rate (net) (2.5 %) (2.1 %) (1.9 %) Non-taxable income less non-tax-deductible expenses (net) (0.2 %) 0.1 % (0.2 %) Other adjustments (net) 1.4 % (0.2 %) (1.0 %) Effective tax rate 20.7 % 19.8 % 18.9 % The deviation in foreign subsidiaries' tax rates from the Danish tax rate is mainly driven by Swiss business activities. Other adjustments in 2020 comprise of tax related to acquisitions and subsequent transfers of intellectual property rights (around 4%) countered by clarification of tax uncertainties, settlement of tax cases and adjustment of prior years. |
Deferred Income Tax Assets and Liabilities and Specification of Tax Loss Carry-Forwards | Development in deferred income tax assets and liabilities DKK million Property, Intangible Inventories Other Offset Total 2020 Net deferred tax asset/(liability) at 1 January (1,591) (718) 1,811 3,452 1,087 — 4,041 Income/(charge) to the income statement (47) (2,883) 963 1,449 520 2 Income/(charge) to other comprehensive income — 92 (216) 16 (469) (577) Income/(charge) to equity — (92) — — 20 (72) Acquisition of subsidiaries — — — — 276 276 Effect of exchange rate adjustment 24 1 (2) (300) (30) (307) Net deferred tax asset/(liability) at 31 December (1,614) (3,600) 2,556 4,617 1,404 — 3,363 Classified as follows: Deferred tax asset at 31 December 755 46 2,568 4,895 2,903 (5,302) 5,865 Deferred tax liability at 31 December (2,369) (3,646) (12) (278) (1,499) 5,302 (2,502) 2019 Net deferred tax asset/(liability) at 1 January (703) (564) 973 2,402 667 — 2,775 Change in accounting policy, leases (865) — — 865 — — Income/(charge) to the income statement (5) (155) 820 133 689 1,482 Income/(charge) to other comprehensive income — — 18 47 (296) (231) Income/(charge) to equity — — — — 18 18 Disposal of subsidiaries — — — (18) — (18) Effect of exchange rate adjustment (18) 1 — 23 9 15 Net deferred tax asset/(liability) at 31 December (1,591) (718) 1,811 3,452 1,087 — 4,041 Classified as follows: Deferred tax asset at 31 December 769 58 3,428 3,580 1,843 (5,557) 4,121 Deferred tax liability at 31 December (2,360) (776) (1,617) (128) (756) 5,557 (80) The total tax value of unrecognised tax loss carry-forwards amounts to DKK 628 million in 2020 (DKK 144 million in 2019). |
Operating assets and liabilit_2
Operating assets and liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Intangible Assets and Property, Plant and Equipment | DKK million Patents and licences Software and other intangibles Total intangible assets Land and buildings Plant and machinery Other equipment Assets Property, plant and equipment 2020 Cost at the beginning of the year 7,270 2,560 9,830 30,260 27,594 6,215 20,351 84,420 Additions during the year 15,906 396 16,302 741 506 490 4,560 6,297 Disposals during the year (698) — (698) (119) (583) (122) (16) (840) Transfer and reclassifications — — — 7,440 4,586 515 (12,541) — Effect of exchange rate adjustment (74) (20) (94) (813) (600) (222) (1,556) (3,191) Cost at the end of the year 22,404 2,936 25,340 37,509 31,503 6,876 10,798 86,686 Amortisation/depreciation and impairment losses at the beginning of the year 2,643 1,352 3,995 11,528 18,888 3,453 — 33,869 Amortisation/depreciation for the year 889 207 1,096 1,859 1,500 821 — 4,180 Impairment losses for the year 350 — 350 14 69 28 16 127 Amortisation/depreciation and impairment losses reversed on disposals during the year (698) — (698) (119) (581) (115) (16) (831) Effect of exchange rate adjustment (49) (11) (60) (346) (432) (150) — (928) Amortisation/depreciation and impairment losses at the end of the year 3,135 1,548 4,683 12,936 19,444 4,037 — 36,417 Carrying amount at the end of the year 19,269 1,388 20,657 24,573 12,059 2,839 10,798 50,269 2019 Cost at the beginning of the year 5,247 2,412 7,659 25,401 25,412 4,779 16,846 72,438 Change in accounting policy, leases — — — 3,291 — 487 — 3,778 Additions during the year 1,958 221 2,179 555 350 498 7,580 8,983 Disposals during the year — (79) (79) (407) (504) (244) (74) (1,229) Transfer and reclassifications — — — 1,277 2,248 665 (4,190) — Effect of exchange rate adjustment 65 6 71 143 88 30 189 450 Cost at the end of the year 7,270 2,560 9,830 30,260 27,594 6,215 20,351 84,420 Amortisation/depreciation and impairment losses at the beginning of the year 1,390 1,124 2,514 9,770 17,871 2,906 — 30,547 Amortisation/depreciation for the year 312 175 487 1,818 1,410 743 — 3,971 Impairment losses for the year 914 68 982 57 70 20 74 221 Amortisation/depreciation and impairment losses reversed on disposals during the year — (18) (18) (160) (504) (229) (74) (967) Effect of exchange rate adjustment 27 3 30 43 41 13 — 97 Amortisation and impairment losses at the end of the year 2,643 1,352 3,995 11,528 18,888 3,453 — 33,869 Carrying amount at the end of the year 4,627 1,208 5,835 18,732 8,706 2,762 20,351 50,551 |
Amortisation and Impairment Losses | Amortisation and impairment losses DKK million 2020 2019 2018 Cost of goods sold 369 916 208 Sales and distribution costs 40 24 15 Research and development costs 1,025 522 769 Administrative costs 10 3 2 Other operating income, net 2 4 6 Total amortisation and impairment loss 1,446 1,469 1,000 Total amortisation 1,096 487 1,000 Total impairment losses 350 982 — |
Depreciation and Impairment Losses | Depreciation and impairment losses DKK million 2020 2019 2018 Cost of goods sold 2,729 2,656 2,312 Sales and distribution costs 403 354 69 Research and development costs 724 783 468 Administrative costs 433 376 70 Other operating income, net 18 23 6 Total depreciation and impairment losses 4,307 4,192 2,925 |
Right-of-Use Assets | Right-of-use assets in the balance sheet DKK million Land and buildings Other equipment Total 2020 Balance at 1 January 3,029 503 3,532 Additions during the year 660 318 978 Depreciation for the year (644) (320) (964) Effect of exchange rate adjustment (144) (22) (166) Balance at 31 December 2,901 479 3,380 2019 Balance at 1 January 3,291 487 3,778 Additions during the year 333 307 640 Depreciation for the year (564) (288) (852) Effect of exchange rate adjustment (31) (3) (34) Balance at 31 December 3,029 503 3,532 Amounts recognised in the income statement DKK million 2020 2019 Depreciation 964 852 Interest on lease liabilities 97 108 Variable lease expenses 135 113 Short-term leases 98 201 Lease of low value assets 79 63 Total amounts recognised in the 1,373 1,337 |
Lease Expense | Amounts recognised in the income statement DKK million 2020 2019 Depreciation 964 852 Interest on lease liabilities 97 108 Variable lease expenses 135 113 Short-term leases 98 201 Lease of low value assets 79 63 Total amounts recognised in the 1,373 1,337 |
Inventories | DKK million 2020 2019 Raw materials 3,326 2,842 Work in progress 12,252 11,375 Finished goods 5,111 4,850 Total inventories (gross) 20,689 19,067 Write-downs at year-end (2,153) (1,426) Total inventories (net) 18,536 17,641 Indirect production costs included in work in 9,703 9,216 Share of total inventories (net) 52 % 52 % Movements in inventory write-downs: Write-downs at the beginning of the year 1,426 1,959 Write-downs during the year 1,628 414 Utilisation of write-downs (528) (68) Reversal of write-downs (373) (879) Write-downs at the end of the year 2,153 1,426 |
Trade Receivables | DKK million Gross carrying amount Loss allowance Net carrying amount 2020 Not yet due 27,511 (805) 26,706 1-90 days 1,000 (112) 888 91-180 days 188 (63) 125 181-270 days 44 (29) 15 271-360 days 51 (51) — More than 360 days past due 320 (320) — Trade receivables 29,114 (1,380) 27,734 EMEA 6,306 (781) 5,525 China 2,137 — 2,137 Rest of World 3,003 (580) 2,423 North America Operations 17,668 (19) 17,649 Trade receivables 29,114 (1,380) 27,734 2019 Not yet due 24,359 (763) 23,596 1-90 days 1,204 (127) 1,077 91-180 days 261 (69) 192 181-270 days 96 (49) 47 271-360 days 79 (79) — More than 360 days past due 397 (397) — Trade receivables 26,396 (1,484) 24,912 EMEA 7,104 (903) 6,201 China 1,760 — 1,760 Rest of World 3,084 (568) 2,516 North America Operations 14,448 (13) 14,435 Trade receivables 26,396 (1,484) 24,912 Movements in allowance for doubtful trade receivables DKK million 2020 2019 Carrying amount at the beginning of the year 1,484 1,370 Reversal of allowance on realised losses (108) (45) Net movement recognised in income statement 139 158 Effect of exchange rate adjustment (135) 1 Allowance at the end of the year 1,380 1,484 |
Retirement Benefit Obligations | Net retirement benefit obligations DKK million 2020 2019 Retirement benefit obligations 2,624 2,508 Fair value of plan assets 1,225 1,174 Net retirement benefit obligations 1,399 1,334 |
Sensitivity Analysis | Key assumptions used for valuation and sensitivity analysis DKK million Key assumptions 1%-point increase 1%-point decrease 2020 Discount rate (decrease)/increase 1.0 % (403) 523 Future remuneration growth (decrease)/increase 2.2 % 116 (101) 2019 Discount rate (decrease)/increase 1.3 % (366) 465 Future remuneration growth (decrease)/increase 2.4 % 105 (94) |
Provisions for sales rebates | Provisions for sales rebates DKK million 2020 2019 2018 At the beginning of the year 30,878 25,760 20,374 Additional provisions, including increases to existing provisions 111,921 102,782 82,631 Amount paid during the year (106,116) (98,655) (78,647) Adjustments, including unused amounts reversed during the year 166 381 386 Effect of exchange rate adjustment (2,797) 610 1,016 At the end of the year 34,052 30,878 25,760 DKK million Provisions for sales rebates 1 Provisions Provisions Other provi- sions 2 2020 2019 At the beginning of the year 30,878 2,375 1,082 1,398 35,733 29,553 Additional provisions, including increases to existing provisions 111,921 662 413 814 113,810 104,621 Amount used during the year (106,116) (364) (694) (46) (107,220) (99,244) Adjustments, including unused amounts reversed during the year 166 — (6) (82) 78 148 Effect of exchange rate adjustment (2,797) (222) — (42) (3,061) 655 At the end of the year 34,052 2,451 795 2,042 39,340 35,733 Non-current liabilities 3 301 2,209 293 1,723 4,526 4,613 Current liabilities 33,751 242 502 319 34,814 31,120 1. Provisions for sales rebates are related to US Managed Care, Medicare, Medicaid and other minor US rebate types, as well as rebates in a number of European countries and Canada. 2. Other provisions consists of various types of provision, including obligations in relation to employee benefits such as jubilee benefits, company-owned life insurance, etc. 3. For non-current liabilities, provision for sales rebates is expected to be settled after one year, provisions for product returns will be utilised in 2022 and 2023. In the case of provisions for legal disputes, the timing of settlement cannot be determined. |
Capital structure and financi_2
Capital structure and financial items (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share Capital, Reserves And Other Equity Interest And Financial Instruments [Abstract] | |
Earnings Per Share | Earnings per share DKK million 2020 2019 2018 Net profit 42,138 38,951 38,628 Average number of shares outstanding in million shares 2,333.9 2,374.3 2,419.6 Dilutive effect of average outstanding share pool 1 in million shares 6.1 4.4 4.8 Average number of shares outstanding, including dilutive effect of outstanding share pool in million shares 2,340.0 2,378.7 2,424.4 Basic earnings DKK 18.05 16.41 15.96 Diluted earnings DKK 18.01 16.38 15.93 1. For further information on the outstanding share pool, please refer to note 5.1. |
Cash Distribution to Shareholders | Cash distribution to shareholders DKK million 2020 2019 2018 Interim dividend for the year 7,570 7,100 7,238 Dividend for prior year 12,551 12,309 11,810 Share repurchases for the year 16,855 15,334 15,567 Total 36,976 34,743 34,615 |
Treasury Shares | Treasury shares 2020 2019 Market value, Treasury shares in % Number of B shares of DKK 0.20 (million) Number of B shares of DKK 0.20 (million) Holding at the beginning of the year 18,613 2.0 % 48.1 55.8 Cancellation of treasury shares (19,333) (50.0) (50.0) Transfer regarding restricted stock units (148) (0.4) (2.6) Purchase during the year 16,855 39.8 44.9 Value adjustment 29 — — Holding at the end of the year 16,016 1.6 % 37.5 48.1 |
Share Capital | Share capital Total share capital DKK million A share B share Development in share capital: Share capital 2017 107 393 500 Cancelled in 2018 — (10) (10) Cancelled in 2019 — (10) (10) Share capital at the beginning 107 373 480 Cancelled in 2020 — (10) (10) Share capital at the end 107 363 470 |
Specification of Other Reserves | Specification of Other reserves DKK million Exchange rate ad- Cash flow hedges Tax and other items Total Reserve at (1,556) 2,027 (32) 439 Other comprehensive income, net for 2018 491 (3,704) 728 (2,485) Reserve at (1,065) (1,677) 696 (2,046) Other comprehensive income, net for 2019 226 1,348 (222) 1,352 Reserve at (839) (329) 474 (694) Other comprehensive income, net for 2020 (1,689) 1,713 (567) (543) Transfer of cash flow hedge reserve to intangible assets 1 418 (92) 326 Reserve at (2,528) 1,802 (185) (911) 1. For information on derivatives refer to note 4.3 |
Financial Risks | Management has assessed the following key financial risks: Type Financial risk Foreign exchange risk High Credit risk Low Interest rate risk Low Liquidity risk Low |
Financial Contracts | The financial contracts existing at year-end cover the expected future cash flow for the following number of months: 2020 2019 USD 10 months 9 months CNY 1 6 months 7 months JPY 12 months 12 months CAD 9 months 9 months GBP 11 months 10 months 1. Chinese yuan traded offshore (CNH) is used to hedge Novo Nordisk's CNY currency exposure. |
Key Currencies | Key currencies Exchange rate DKK per 100 2020 2019 2018 USD Average 654 667 631 Year-end 606 668 652 Year-end change (9.3 %) 2.5 % 5.1 % CNY Average 95 97 95 Year-end 93 96 95 Year-end change (3.1 %) 1.1 % (0.3 %) JPY Average 6.13 6.12 5.72 Year-end 5.88 6.11 5.91 Year-end change (3.8 %) 3.4 % 7.3 % CAD Average 488 503 487 Year-end 474 511 479 Year-end change (7.2 %) 6.7 % (3.2 %) GBP Average 839 852 842 Year-end 824 877 827 Year-end change (6.0 %) 6.0 % (1.4 %) |
Foreign Exchange Sensitivity Analysis | At year-end, an immediate 5% increase/decrease in the following currencies versus EUR and DKK would impact Novo Nordisk’s operating profit estimated by Management as outlined in the table below: Estimated for DKK million 2021 2020 USD 1,900 1,950 CNY 460 450 JPY 200 150 CAD 140 130 GBP 110 100 At year-end, an immediate 5% increase/decrease in all other currencies versus EUR and DKK would affect other comprehensive income and the income statement as outlined in the table below: DKK million Immediate Immediate 2020 Other comprehensive income (1,893) 1,893 Income statement 299 (299) Total (1,594) 1,594 2019 Other comprehensive income (1,811) 1,811 Income statement 199 (199) Total (1,612) 1,612 |
Credit Exposure | Credit exposure for cash at bank and derivative financial instruments (market value) DKK million Cash at Derivative financial instruments Total 2020 AA range 7,296 989 8,285 A range 4,443 1,343 5,786 BBB range 212 — 212 Not rated or below BBB range 806 — 806 Total 12,757 2,332 15,089 2019 AA range 7,471 139 7,610 A range 7,145 49 7,194 BBB range 314 — 314 Not rated or below BBB range 545 — 545 Total 15,475 188 15,663 |
Derecognised Receivables | At year-end, the Group had derecognised receivables without recourse having due dates after 31 December 2020 amounting to: DKK million 2020 2019 2018 US 1,817 3,672 3,587 Japan 2,351 2,149 1,937 |
Derivative Financial Instruments | Derivative financial instruments 2020 2019 DKK million Contract Positive Negative Contract Positive Negative Forward contracts USD 1 29,110 1,658 — 25,394 81 315 Forward contracts CNH, JPY, GBP and CAD 10,291 191 47 10,013 35 130 Forward contracts, cash flow hedges 39,401 1,849 47 35,407 116 445 Forward contracts USD 19,411 379 1,307 11,287 61 217 Forward contracts CNH, CAD, EUR, GBP and JPY 4,578 104 11 3,761 11 72 Forward contracts, fair value hedges 23,989 483 1,318 15,048 72 289 Total derivative financial instruments 63,390 2,332 1,365 50,455 188 734 Recognised in the income statement 483 1,318 72 289 Recognised in other comprehensive income 2 1,849 47 116 445 1. Average hedge rate for USD cash flow hedges is 640 at the end of 2020 and 654 at the end of 2019. 2. The fair value of cash flow hedges at year-end 2020, DKK 1,802 million, is recognised in other comprehensive income. In addition DKK 418 million in cash flow hedge losses on intangible asset purchases has been incurred for a total 2020 other comprehensive impact of DKK 1,384 million. The DKK 418 million deferred loss was transferred directly from the cash flow hedge reserve to the initial cost of the intangible assets. |
Borrowings | Contractual undiscounted cashflows 2020 2019 DKK million Leases Loans Bank overdrafts 1 Total Leases Bank overdrafts 1 Total Within 1 year 855 5,577 1,107 7,539 847 659 1,506 1-3 years 1,247 — — 1,247 1,424 — 1,424 3-5 years 694 — — 694 734 — 734 More than 5 years 1,241 — — 1,241 1,140 — 1,140 Total contractual undiscounted cash flows 4,037 5,577 1,107 10,721 4,145 659 4,804 Contractual discounted cash flows included 3,672 5,577 1,107 10,356 3,824 659 4,483 Non-current liabilities 2,897 — — 2,897 3,009 — 3,009 Current liabilities 775 5,577 1,107 7,459 815 659 1,474 Reconciliation of liabilities arising from financing activities Non-cash movements DKK million Beginning of the year Cash flows Additions Disposals Exchange rates Other End of the year 2020 Lease liabilities 3,824 (950) 978 — (171) (9) 3,672 Loans — 5,582 — — (5) — 5,577 Bank overdrafts 1 595 100 — — (119) — 576 Liabilities arising from financing activities 4,419 4,732 978 — (295) (9) 9,825 Bank overdrafts 1 64 467 — — — — 531 Total borrowings 4,483 5,199 978 — (295) (9) 10,356 2019 Lease liabilities 3,988 (822) 640 (57) 63 12 3,824 Bank overdrafts 1 506 81 — — 8 — 595 Liabilities arising from financing activities 4,494 (741) 640 (57) 71 12 4,419 Bank overdrafts 1 9 55 — — — — 64 Total borrowings 4,503 (686) 640 (57) 71 12 4,483 |
Cash and Cash Equivalents and Financial Resources | DKK million 2020 2019 2018 Cash and cash equivalents Cash at bank (note 4.2) 12,757 15,475 15,638 Borrowings 1 (531) (64) (9) Cash and cash equivalents 12,226 15,411 15,629 Financial reserves Cash and cash equivalents 12,226 15,411 15,629 Undrawn committed credit facility 2 11,531 11,578 11,574 Undrawn bridge facility 3 5,577 — — Borrowings 1, 3 (576) (595) (506) Financial reserves 4 28,758 26,394 26,697 Free cash flow DKK million 2020 2019 2018 Net cash generated from 51,951 46,782 44,616 Net cash used in investing activities (22,436) (11,509) (12,080) Repayment on lease liabilities (950) (822) — Free cash flow 4 28,565 34,451 32,536 1. Bank overdrafts includes DKK 576 million classified as financing activities (DKK 595 million in 2019) and DKK 531 million classified as cash and cash equivalents (DKK 64 million in 2019). 2. The undrawn committed credit facility comprises a EUR 1,550 million facility (EUR 1,550 million in 2019 and EUR 1,550 million in 2018) committed by a portfolio of international banks. The facility matures in 2024. 3. The undrawn bridge facility included in financial reserves comprises the EUR 750 million (DKK 5,577 million) undrawn portion of EUR 1,500 million bridge facility. The facility is expected to mature in 2021 but the terms provide that the maturity can be extended, at the option of Novo Nordisk, through June 2022. Financial reserves include amounts undrawn under credit facilities and overdrafts where the repayment is not contractually required within 12 months. In accordance with IFRS, the DKK 5,577 million (EUR 750 million) drawn loan has been classified as current borrowings as it is Management's expectation that it will be repaid in 2021. 4. Additional non-IFRS financial measure; please refer to 'Non-IFRS financial measures', which is not part of the audited financial statements. Restricted cash Cash and cash equivalents at 31 December 2020 includes DKK 653 million that is restricted (DKK 509 million in 2019). The restricted cash balance relates to subsidiaries in which availability of currency for remittance of funds is temporarily scarce. |
Free Cash Flow | Accounting policies The cash flow statement is presented in accordance with the indirect method commencing with net profit for the year. Cash flows in foreign currencies are translated to DKK at the average exchange rate for the respective year. Cash from operating activities converts income statement items from the accrual basis of accounting to cash basis. As such, starting with net profit, non-cash items are reversed and actual payments included. The change in working capital is also taken into account, as this shows the development in money tied up in the balance sheet. Cash from investing activities shows payments related to the purchase and sale of Novo Nordisk’s long-term investments. This includes fixed assets such as construction of new production sites, intangible assets such as patents and licences, and financial assets. Cash and cash equivalents consists of cash offset by short-term bank overdrafts. Where short-term bank overdrafts are consistently overdrawn, they are excluded from cash and cash equivalents. The movement in such facilities is presented under financing activities in the cash flow statement. Financial reserves comprise the sum of cash and cash equivalents at the end of the year and undrawn committed credit and loan facilities, with a maturity of more than 12 months, less loans and bank overdrafts classified as liabilities arising from financing activities contractually obliged for repayment within 12 months of the balance sheet date. |
Change in Working Capital | DKK million 2020 2019 2018 Inventories (895) (1,305) (963) Trade receivables (2,822) (2,126) (2,621) Other receivables and prepayments (419) (1,190) (662) Trade payables (641) (398) 1,146 Other liabilities 1,274 1,202 (348) Adjustment for payables related to non-current assets 879 295 84 Adjustment related to divestment of Group companies — (42) — Change in working capital including exchange rate adjustments (2,624) (3,564) (3,364) Exchange rate adjustments (1,729) 176 (6) Cash flow change in working capital (4,353) (3,388) (3,370) |
Other Non-Cash Items | The adjustments are specified as follows: DKK million 2020 2019 2018 Reversals of non-cash income statement items Interest income and interest expenses, net (note 4.9) 53 155 34 Capital gain/(loss) on investments, net etc (note 4.9) 195 145 (163) Result of associated company (note 4.9) (149) 137 (12) Share-based payment costs (note 5.1) 823 363 414 Income from the divestment of Group companies — (68) (122) Adjustment in non-cash items — 162 — Increase/(decrease) in provisions (note 3.6) and retirement benefit obligations (note 3.5) 3,605 6,071 5,503 Other 3,322 67 444 Total other non-cash items 7,849 7,032 6,098 |
Financial Assets | Financial assets by category DKK million 2020 2019 Other financial assets 1 766 970 Derivative financial instruments (note 4.3) 2,332 188 Financial assets at fair value through the income statement 3,098 1,158 Other financial assets 1 300 364 Trade receivables 11,643 12,203 Other receivables and prepayments (current and non-current) 4,835 4,275 – less prepayments and VAT receivables (4,113) (3,899) Cash at bank (note 4.5) 12,757 15,475 Financial assets at amortised cost 25,422 28,418 Trade receivables in a factoring portfolio 2 16,091 12,709 Financial assets at fair value through OCI 16,091 12,709 Total financial assets at the end of the year by category 1 44,611 42,285 1. Financial assets with the exception of other financial assets and non-current part of other receivables and prepayments (DKK 674 million in 2020, DKK 841 million in 2019) are all due within one year. Other financial assets at amortised cost include DKK 280 million which are due in more than five years (DKK 327 million in 2019). Other financial assets measured at fair value through the income statement are minor shareholdings. 2. Trade receivables which are measured at fair value through OCI, which have no associated loss allowance. Refer to note 3.4. |
Financial Liabilities | Financial liabilities by category DKK million 2020 2019 Derivative financial instruments (note 4.3) 1,365 734 Financial liabilities measured at 1,365 734 Borrowings (non-current) 2,897 3,009 Borrowings (current) 3 7,459 1,474 Trade payables 5,717 6,358 Other liabilities 17,005 15,085 – less VAT and duties payable (598) (478) Financial liabilities measured at 32,480 25,448 Total financial liabilities at the end of the year by category 4 33,845 26,182 3. The fair value of loans approximates the booked amount 4. Please refer to note 4.4 for a maturity analysis for non-current and current borrowings. All other financial liabilities are due within one year. |
Fair Value Measurement Hierarchy | Fair value measurement hierarchy DKK million 2020 2019 Active market data 634 846 Directly or indirectly observable market data 2,332 188 Not based on observable market data 5 16,223 12,833 Total financial assets at fair value 19,189 13,867 Active market data — — Directly or indirectly observable market data 1,365 734 Not based on observable market data — — Total financial liabilities at fair value 1,365 734 5. The fair value of trade receivables in a factoring portfolio is calculated based on the net invoice amount (invoice amount less charge-backs) less the fee payable to the factoring entity. The factoring fee is insignificant due to the short period between the time of sale to the factoring entity and the invoice due date and the rate applicable. Inputs into the estimate of US wholesaler charge-backs are described in note 2.1. |
Financial Income | Financial income DKK million 2020 2019 2018 Interest income 1 337 65 51 Foreign exchange gain (net) 1,142 — — Financial gain from forward contracts (net) — — 1,656 Financial gain from currency options (net) — — 152 Capital gain on investments, etc. — — 251 Result of associated companies 149 — 12 Total financial income 1,628 65 2,122 |
Financial Expenses | Financial expenses DKK million 2020 2019 2018 Interest expenses 1 390 220 85 Foreign exchange loss (net) — 539 1,510 Financial loss from forward contracts (net) 1,889 2,673 — Capital loss on investments, etc. 195 145 88 Result of associated companies — 137 — Other financial expenses 150 281 72 Total financial expenses 2,624 3,995 1,755 1. Total interest income and expenses is measured at amortised cost for financial assets and liabilities. |
Financial Impact From Forward Contracts and Currency Options, Specified | Financial impact from forward contracts and currency options, specified DKK million 2020 2019 2018 Forward contracts Income/(loss) transferred from other comprehensive income (329) (1,677) 1,841 Value adjustment of transferred contracts 79 (1,609) (1,299) Unrealised fair value adjustments of forward contracts (835) (217) (143) Realised foreign exchange gain/(loss) on forward contracts (804) 830 1,257 Financial income/(expense) from forward contracts (1,889) (2,673) 1,656 Currency options Realised income/(loss) transferred from other comprehensive income — — 186 Value adjustment of transferred options — — (3) Foreign exchange gain/(loss) on currency options — — (31) Financial income/(expense) from currency options — — 152 |
Other disclosures (Tables)
Other disclosures (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Additional information [abstract] | |
Expensed in the Income statement | Share-based payment expensed in the income statement DKK million 2020 2019 2018 Restricted stock units to employees 189 48 204 Long-term share-based incentive programme (Management Board) 1 162 86 48 Long-term share-based incentive programme (management group below Management Board) 436 195 145 Shares allocated to individual employees 36 34 17 Share-based payment expensed in the income statement 823 363 414 1. In 2017 Novo Nordisk introduced, for the first time, a share-based compensation programme with terms which amortises the grant date valuation over four years. The 2020 expense includes amortisation of the 2017, 2018, 2019 and 2020 programmes. |
General Terms and Conditions of Launched Programmes | General terms and conditions of launched programmes Restricted stock units to employees Shares for Management Board Shares for management group below Management Board Shares allocated to individual employees 2020 2019 2018 2020 2019 2018 2020 2019 2018 2020 2019 2018 Number of shares awarded in the year — 2,148,580 — 370,038 508,398 411,090 1,011,692 1,300,333 1,114,455 43,790 154,122 159,437 Value per share at launch (DKK) — 307 — 411 298 280 411 298 280 391 311 278 Total market value at launch (DKK million) — 660 — 152 152 115 416 387 312 17 48 44 Amortisation period of the programme 2019 to 2023 2020 to 2023 2019 to 2022 2018 to 2021 2020 to 2023 2019 to 2022 2018 to 2021 2020 to 2023 2019 to 2022 2018 to 2021 Allocated to recipients Feb 2023 Feb 2024 Feb 2023 Feb 2022 Feb 2024 Feb 2023 Feb 2022 2023 2022 2021 Vesting period — 3.5 years — 3 years 3 years 3 years 3 years 3 years 3 years 3 years 3 years 3 years |
Outstanding Restricted Stock | Outstanding restricted stock units Total Restricted stock units to employees Shares for Management Board Shares for management group below Management Board Shares allocated to individual employees 2020 2019 2018 2020 2019 2018 2020 2019 2018 2020 2019 2018 2020 2019 2018 Outstanding at the beginning of the year 6,879,198 5,584,019 4,933,882 2,148,580 1,521,031 1,556,211 1,326,080 1,228,714 1,115,494 3,173,185 2,665,226 2,226,683 231,353 169,048 35,494 Released allocated shares (361,844) (2,553,658) (825,537) (29,250) (1,431,192) (35,180) (95,082) (378,421) (284,173) (171,162) (662,172) (480,301) (66,350) (81,873) (25,883) Cancelled allocated shares (129,713) (262,596) (209,308) — (89,839) — (12,700) (32,611) (13,697) (95,038) (130,202) (195,611) (21,975) (9,944) — Allocated in the year 1,425,520 4,111,433 1,684,982 — 2,148,580 — 370,038 508,398 411,090 1,011,692 1,300,333 1,114,455 43,790 154,122 159,437 Performance adjustment 1 863,557 — — — — — 239,567 — — 623,990 — — — — — Outstanding at the end of the year 8,676,718 6,879,198 5,584,019 2,119,330 2,148,580 1,521,031 1,827,903 1,326,080 1,228,714 4,542,667 3,173,185 2,665,226 186,818 231,353 169,048 1. Number of shares for Management Board and management group below Management board has been adjusted as the sales growth target set by the Board is expected to be exceeded for the 2018, 2019 and 2020 programmes. |
Contractual Obligations and Recognised Non-Current Debt | Total contractual obligations and recognised non-current debt can be specified as follows (payments due by period): 2020 2019 DKK million Within 1-3 3-5 More Total Within 1-3 3-5 More Total Retirement benefit obligations 23 46 44 1,286 1,399 13 26 25 1,270 1,334 Leases (note 4.4) 855 1,247 694 1,241 4,037 847 1,424 734 1,140 4,145 Total obligations recognised in the balance sheet 878 1,293 738 2,527 5,436 860 1,450 759 2,410 5,479 Leases 1 152 198 134 280 764 128 229 199 376 932 Research and development obligations 2,733 3,460 905 137 7,235 2,600 3,258 1,493 29 7,380 Research and development – potential milestone payments 2 205 918 507 2,453 4,083 300 1,023 1,009 2,403 4,735 Commercial product launch – potential milestone payments 2 — — 212 5,893 6,105 — — — 3,468 3,468 Purchase obligations relating to invest- 339 — — — 339 172 — — — 172 Other purchase obligations 7,528 3,014 773 748 12,063 5,695 2,989 1,175 621 10,480 Total obligations not recognised in the balance sheet 10,957 7,590 2,531 9,511 30,589 8,895 7,499 3,876 6,897 27,167 Total contractual obligations 11,835 8,883 3,269 12,038 36,025 9,755 8,949 4,635 9,307 32,646 1. Predominantly relates to estimated variable property taxes, leases committed not yet commenced and low value assets. 2. Potential milestone payments are associated with uncertainty as they are linked to successful achievements in research activities. |
Material Transactions with Related Parties | Material transactions with related parties DKK million 2020 2019 2018 Novo Holdings A/S Purchase of Novo Nordisk B shares 5,963 4,894 4,207 Sale of NNIT B shares — — (368) Dividend payment to Novo Holdings A/S 5,767 5,580 5,496 NNIT Group Services provided by NNIT 775 941 1,052 Dividend payment from NNIT (18) (20) (19) Novozymes Group Services provided by Novo Nordisk (113) (132) (115) Services provided by Novozymes 72 103 121 CS Solar Fund XIV Purchase of shares by Novo Nordisk — 97 — Liability for capital commitment 1 — 389 — Distribution by CS Solar Fund XIV — (385) — 1. The liability disclosed for 2019 related to capital commitment was paid in 2020 (DKK 392 million). |
Schedule of Auditors' Remuneration | DKK million 2020 2019 2018 Statutory audit 26 26 25 Audit-related services 3 4 3 Tax advisory services 9 11 11 Other services 4 4 3 Total fee to statutory auditors 42 45 42 |
Schedule of Companies Included in Novo Nordisk Group | Activity: • Sales and marketing • Production • Research and development • Services/investments Company and country Percentage of shares owned Activity Parent company Novo Nordisk A/S, Denmark • • • • Subsidiaries by geographical area North America Operations Novo Nordisk Canada Inc., Canada 100 • Novo Nordisk Inc., United States 100 • Novo Nordisk North America Operations A/S, Denmark 100 • Novo Nordisk Pharmaceutical Industries LP, United States 100 • Novo Nordisk Pharma, Inc., United States 100 • Novo Nordisk Research Center Indianapolis, Inc., United States 100 • Novo Nordisk Research Center Seattle, Inc., United States 100 • Novo Nordisk US Bio Production, Inc., United States 100 • Novo Nordisk US Commercial Holdings, Inc., United States 100 • Novo Nordisk US Holdings Inc., United States 100 • Corvidia Therapeutics, Inc., United States 100 • Emisphere Technologies, Inc., United States 100 • International Operations Novo Nordisk Pharmaceuticals A/S, Denmark 100 • Novo Nordisk Pharma Operations A/S, Denmark 100 • • Novo Nordisk Region AAMEO and LATAM A/S, Denmark 100 • Novo Nordisk Region Europe A/S, Denmark 100 • Novo Nordisk Region Japan & Korea A/S, Denmark 100 • EMEA Aldaph SpA, Algeria 100 • • Novo Nordisk Pharma GmbH, Austria 100 • S.A. Novo Nordisk Pharma N.V., Belgium 100 • Novo Nordisk Pharma d.o.o., Bosnia and Herzegovina 100 • Novo Nordisk Pharma EAD, Bulgaria 100 • Novo Nordisk Hrvatska d.o.o., Croatia 100 • Novo Nordisk s.r.o., Czech Republic 100 • Novo Nordisk Denmark A/S, Denmark 100 • Novo Nordisk Pharmatech A/S, Denmark 100 • • Novo Nordisk Egypt LLC, Egypt 100 • Novo Nordisk Farma OY, Finland 100 • Novo Nordisk, France 100 • Novo Nordisk Production SAS, France 100 • Novo Nordisk Pharma GmbH, Germany 100 • Novo Nordisk Hellas Epe., Greece 100 • Novo Nordisk Hungária Kft., Hungary 100 • Novo Nordisk Biopharm Limited, Ireland 100 • • Novo Nordisk Limited, Ireland 100 • Company and country Percentage of shares owned Activity Novo Nordisk Ltd, Israel 100 • Novo Nordisk S.P.A., Italy 100 • Novo Nordisk Kazakhstan LLP, Kazakhstan 100 • Novo Nordisk Kenya Ltd., Kenya 100 • Novo Nordisk Pharma SARL, Lebanon 100 • UAB Novo Nordisk Pharma, Lithuania 100 • Novo Nordisk Farma dooel, North Macedonia 100 • Novo Nordisk Pharma SAS, Morocco 100 • Novo Nordisk B.V., Netherlands 100 • Novo Nordisk Pharma Limited, Nigeria 100 • Novo Nordisk Norway AS, Norway 100 • Novo Nordisk Pharmaceutical Services Sp. z o.o., Poland 100 • Novo Nordisk Pharma Sp.z.o.o., Poland 100 • Novo Nordisk Comércio Produtos Farmacêuticos Lda., Portugal 100 • Novo Nordisk Farma S.R.L., Romania 100 • Novo Nordisk Limited Liability Company, Russia 100 • Novo Nordisk Production Support LLC, Russia 100 • Novo Nordisk Pharma d.o.o. Belgrade (Serbia), Serbia 100 • Novo Nordisk Slovakia s.r.o., Slovakia 100 • Novo Nordisk, d.o.o., Slovenia 100 • Novo Nordisk (Pty) Limited, South Africa 100 • Novo Nordisk Pharma S.A., Spain 100 • Novo Nordisk Scandinavia AB, Sweden 100 • Novo Nordisk Health Care AG, Switzerland 100 • • Novo Nordisk Pharma AG, Switzerland 100 • Novo Nordisk Tunisie SARL, Tunisia 100 • Novo Nordisk Saglik Ürünleri Tic. Ltd. Sti., Turkey 100 • Novo Nordisk Ukraine, LLC, Ukraine 100 • Novo Nordisk Pharma Gulf FZ-LLC, United Arab Emirates 100 • Novo Nordisk Holding Limited, United Kingdom 100 • Novo Nordisk Limited, United Kingdom 100 • Ziylo Limited, United Kingdom 100 • Region China Novo Nordisk (China) Pharmaceuticals Co., Ltd., China 100 • • Novo Nordisk Region China A/S, Denmark 100 • Beijing Novo Nordisk Pharmaceuticals Science & Technology Co., Ltd., China 100 • Novo Nordisk Hong Kong Limited, Hong Kong 100 • Novo Nordisk Pharma (Taiwan) Ltd., Taiwan 100 • Company and country Percentage of shares owned Activity Rest of World Novo Nordisk Pharma Argentina S.A., Argentina 100 • Novo Nordisk Pharmaceuticals Pty. Ltd., Australia 100 • Novo Nordisk Pharma (Private) Limited, Bangladesh 100 • Novo Nordisk Produção Farmacêutica do Brasil Ltda., Brazil 100 • Novo Nordisk Farmacêutica do Brasil Ltda., Brazil 100 • Novo Nordisk Farmacéutica Limitada, Chile 100 • Novo Nordisk Colombia SAS, Colombia 100 • Novo Nordisk India Private Limited, India 100 • Novo Nordisk Service Centre (India) Pvt. Ltd., India 100 • PT. Novo Nordisk Indonesia, Indonesia 100 • Novo Nordisk Pars, Iran 100 • • Novo Nordisk Pharma Ltd., Japan 100 • • Novo Nordisk Pharma (Malaysia) Sdn Bhd, Malaysia 100 • Novo Nordisk Pharma Operations (Business Area) Sdn Bhd, Malaysia 100 • Novo Nordisk Mexico S.A. de C.V., Mexico 100 • Novo Nordisk Pharmaceuticals Ltd., New Zealand 100 • Novo Nordisk Pharma (Private) Limited, Pakistan 100 • Novo Nordisk Panama S.A., Panama 100 • Novo Nordisk Peru S.A.C., Peru 100 • Novo Nordisk Pharmaceuticals (Philippines) Inc., Philippines 100 • Novo Nordisk Pharma (Singapore) Pte Ltd., Singapore 100 • Novo Investment Pte Limited, Singapore 100 • Novo Nordisk Pharma Korea Ltd., South Korea 100 • Novo Nordisk Lanka (PVT) Ltd, Sri Lanka 100 • Novo Nordisk Pharma (Thailand) Ltd., Thailand 93 • Novo Nordisk Venezuela Casa de Representación C.A., Venezuela 100 • Other subsidiaries and associated companies NNE A/S, Denmark 100 • NNIT A/S, Denmark 18 • Churchill Stateside Solar Fund XIV, LLC, United States 99 • |
Basis of preparation - Impact f
Basis of preparation - Impact from IFRS 16 (Details) - DKK (kr) kr in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Right-of-use assets | kr 3,380 | kr 3,532 | kr 3,778 | |
Lease liabilities | kr 3,672 | kr 3,824 | ||
IFRS 16 | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Right-of-use assets | kr 3,778 | |||
Lease liabilities | kr 3,988 |
Results for the year - Net sale
Results for the year - Net sales and rebates - Gross-To-Net Sales Reconciliation (Details) - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Gross sales | kr 298,187 | kr 270,431 | kr 230,701 |
Total gross-to-net sales adjustments | (171,241) | (148,410) | (118,870) |
Net sales | 126,946 | 122,021 | 111,831 |
Reconciliation of changes in other provisions [abstract] | |||
At the beginning of the year | 35,733 | 29,553 | |
Additional provisions, including increases to existing provisions | 113,810 | 104,621 | |
Amount used during the year | (107,220) | (99,244) | |
Effect of exchange rate adjustment | (3,061) | 655 | |
At the end of the year | 39,340 | 35,733 | 29,553 |
US | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Net sales | 57,824 | 57,486 | 54,488 |
US Managed Care and Medicare | US | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Total gross-to-net sales adjustments | (96,716) | (84,202) | (65,207) |
US wholesaler charge-backs | US | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Total gross-to-net sales adjustments | (37,036) | (33,772) | (29,469) |
US Medicaid rebates | US | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Total gross-to-net sales adjustments | (17,307) | (14,365) | (11,950) |
Other | US | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Total gross-to-net sales adjustments | (10,867) | (8,280) | (6,606) |
Other | Non-US | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Total gross-to-net sales adjustments | (9,315) | (7,791) | (5,638) |
Provision for sales rebates | |||
Reconciliation of changes in other provisions [abstract] | |||
At the beginning of the year | 30,878 | 25,760 | 20,374 |
Additional provisions, including increases to existing provisions | 111,921 | 102,782 | 82,631 |
Amount used during the year | (106,116) | (98,655) | (78,647) |
Adjustments, including unused amounts reversed during the year | 166 | 381 | 386 |
Effect of exchange rate adjustment | (2,797) | 610 | 1,016 |
At the end of the year | kr 34,052 | kr 30,878 | kr 25,760 |
Results for the year - Net sa_2
Results for the year - Net sales and rebates - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
North America | |||
Disclosure of geographical areas [line items] | |||
Rebates (as a percent of gross sales) | 74.00% | 71.00% | 68.00% |
US Managed Care and Medicare | US | |||
Disclosure of geographical areas [line items] | |||
Period to settle | 100 days | ||
Non-government customers | Wholesaler charge-backs | US | |||
Disclosure of geographical areas [line items] | |||
Period to settle | 30 days | ||
Government customers | US Medicaid rebates | US | |||
Disclosure of geographical areas [line items] | |||
Period to settle | 150 days |
Results for the year - Segment
Results for the year - Segment information - Narrative (Details) kr in Millions | 12 Months Ended | ||
Dec. 31, 2020DKK (kr)wholesalersegmentcommercial_unit | Dec. 31, 2019DKK (kr) | Dec. 31, 2018 | |
Disclosure of geographical areas [line items] | |||
Number of major wholesalers distributing products | wholesaler | 3 | ||
Net sales expected to be recognised in next 12 months | kr 431 | kr 544 | |
Net sales expected to be recognised thereafter | kr 216 | 32 | |
Number of business segments | segment | 2 | ||
Number of main commercial units | commercial_unit | 2 | ||
Property, plant and equipment | kr 50,269 | 50,551 | |
Outside of Denmark | |||
Disclosure of geographical areas [line items] | |||
Total sales (as a percent) (more than for USA) | 99.70% | ||
USA and China | |||
Disclosure of geographical areas [line items] | |||
Total sales (as a percent) (more than for USA) | 10.00% | ||
Denmark | |||
Disclosure of geographical areas [line items] | |||
Property, plant and equipment | kr 44,431 | 28,322 | |
USA | |||
Disclosure of geographical areas [line items] | |||
Property, plant and equipment | kr 18,750 | kr 20,256 | |
Wholesaler 1 | |||
Disclosure of geographical areas [line items] | |||
Total sales (as a percent) (more than for USA) | 19.00% | 19.00% | 20.00% |
Wholesaler 2 | |||
Disclosure of geographical areas [line items] | |||
Total sales (as a percent) (more than for USA) | 13.00% | 14.00% | 13.00% |
Wholesaler 3 | |||
Disclosure of geographical areas [line items] | |||
Total sales (as a percent) (more than for USA) | 12.00% | 12.00% | 13.00% |
Results for the year - Segmen_2
Results for the year - Segment information - Business segments - Key figures (Details) kr in Millions | 12 Months Ended | ||
Dec. 31, 2020DKK (kr)segment | Dec. 31, 2019DKK (kr) | Dec. 31, 2018DKK (kr) | |
Disclosure of operating segments [line items] | |||
Total net sales | kr 126,946 | kr 122,021 | kr 111,831 |
Cost of goods sold | 20,932 | 20,088 | 17,617 |
Sales and distribution costs | 32,928 | 31,823 | 29,397 |
Research and development costs | 15,462 | 14,220 | 14,805 |
Administrative costs | 3,958 | 4,007 | 3,916 |
Other operating income, net | 460 | 600 | 1,152 |
Operating profit | kr 54,126 | kr 52,483 | kr 47,248 |
Operating margin (as a percent) | 42.60% | 43.00% | 42.20% |
Depreciation, amortisation and impairment losses expensed | kr 5,753 | kr 5,661 | kr 3,925 |
Number of business segments | segment | 2 | ||
Diabetes and Obesity care | |||
Disclosure of operating segments [line items] | |||
Total net sales | kr 108,020 | 102,840 | 93,904 |
Diabetes and Obesity care | Operating segments | |||
Disclosure of operating segments [line items] | |||
Total net sales | 108,020 | 102,840 | 93,904 |
Cost of goods sold | 17,715 | 16,309 | 14,716 |
Sales and distribution costs | 29,903 | 28,729 | 26,396 |
Research and development costs | 13,535 | 12,128 | 12,222 |
Administrative costs | 3,387 | 3,346 | 3,266 |
Other operating income, net | 264 | 309 | 538 |
Operating profit | kr 43,744 | kr 42,637 | kr 37,842 |
Operating margin (as a percent) | 40.50% | 41.50% | 40.30% |
Depreciation, amortisation and impairment losses expensed | kr 4,624 | kr 3,916 | kr 3,210 |
Biopharm | |||
Disclosure of operating segments [line items] | |||
Total net sales | 18,926 | 19,181 | 17,927 |
Biopharm | Operating segments | |||
Disclosure of operating segments [line items] | |||
Total net sales | 18,926 | 19,181 | 17,927 |
Cost of goods sold | 3,217 | 3,779 | 2,901 |
Sales and distribution costs | 3,025 | 3,094 | 3,001 |
Research and development costs | 1,927 | 2,092 | 2,583 |
Administrative costs | 571 | 661 | 650 |
Other operating income, net | 196 | 291 | 614 |
Operating profit | kr 10,382 | kr 9,846 | kr 9,406 |
Operating margin (as a percent) | 54.90% | 51.30% | 52.50% |
Depreciation, amortisation and impairment losses expensed | kr 1,129 | kr 1,745 | kr 715 |
Results for the year - Segmen_3
Results for the year - Segment Information - Net Sales - Business Segments and Geographical Areas (Details) - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of geographical areas [line items] | |||
Total net sales | kr 126,946 | kr 122,021 | kr 111,831 |
Total sales growth as reported (as a percent) | 4.00% | 9.10% | 0.10% |
Diabetes And Obesity Care | |||
Disclosure of geographical areas [line items] | |||
Total net sales | kr 108,020 | kr 102,840 | kr 93,904 |
Diabetes And Obesity Care | Long-acting insulin | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 18,439 | 20,776 | 20,844 |
Diabetes And Obesity Care | Tresiba | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 8,968 | 9,259 | 8,035 |
Diabetes And Obesity Care | Xultophy | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 2,444 | 2,210 | 1,614 |
Diabetes And Obesity Care | Levemir | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 7,027 | 9,307 | 11,195 |
Diabetes And Obesity Care | Premix insulin | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 10,925 | 10,578 | 10,194 |
Diabetes And Obesity Care | Ryzodeg | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 1,291 | 993 | 714 |
Diabetes And Obesity Care | NovoRapid/NovoLog | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 9,634 | 9,585 | 9,480 |
Diabetes And Obesity Care | Fast-acting insulin | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 18,313 | 19,303 | 19,353 |
Diabetes And Obesity Care | Fiasp | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 1,385 | 1,243 | 590 |
Diabetes And Obesity Care | U17 NovoLog/NovoRapid | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 16,928 | 18,060 | 18,763 |
Diabetes And Obesity Care | Human insulin | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 8,873 | 9,036 | 9,265 |
Diabetes And Obesity Care | Total insulin | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 56,550 | 59,693 | 59,656 |
Diabetes And Obesity Care | Total GLP-1 | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 41,831 | 33,221 | 26,129 |
Diabetes And Obesity Care | Victoza | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 18,747 | 21,934 | 24,333 |
Diabetes And Obesity Care | Ozempic | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 21,211 | 11,237 | 1,796 |
Diabetes And Obesity Care | Rybelsus | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 1,873 | 50 | 0 |
Diabetes And Obesity Care | Other Diabetes care | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 4,031 | 4,247 | 4,250 |
Diabetes And Obesity Care | Total Diabetes care | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 102,412 | 97,161 | 90,035 |
Diabetes And Obesity Care | Obesity care Saxenda | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 5,608 | 5,679 | 3,869 |
Biopharm | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 18,926 | 19,181 | 17,927 |
Biopharm | Haemophilia | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 9,662 | 10,281 | 9,576 |
Biopharm | NovoSeven | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 7,203 | 8,119 | 7,881 |
Biopharm | NovoEight | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 1,462 | 1,525 | 1,354 |
Biopharm | Growth disorders | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 7,704 | 7,275 | 6,834 |
Biopharm | Other Biopharm | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 1,560 | 1,625 | 1,517 |
International Operations | |||
Disclosure of geographical areas [line items] | |||
Total net sales | kr 65,829 | kr 61,564 | kr 54,923 |
Total sales growth as reported (as a percent) | 6.90% | 12.10% | 2.30% |
International Operations | Diabetes And Obesity Care | |||
Disclosure of geographical areas [line items] | |||
Total net sales | kr 54,181 | kr 50,271 | kr 44,334 |
International Operations | Diabetes And Obesity Care | Long-acting insulin | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 9,959 | 9,035 | 7,942 |
International Operations | Diabetes And Obesity Care | Tresiba | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 4,407 | 3,477 | 2,764 |
International Operations | Diabetes And Obesity Care | Xultophy | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 1,789 | 1,493 | 1,085 |
International Operations | Diabetes And Obesity Care | Levemir | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 3,763 | 4,065 | 4,093 |
International Operations | Diabetes And Obesity Care | Premix insulin | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 10,246 | 9,707 | 8,862 |
International Operations | Diabetes And Obesity Care | Ryzodeg | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 1,291 | 993 | 714 |
International Operations | Diabetes And Obesity Care | NovoRapid/NovoLog | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 8,955 | 8,714 | 8,148 |
International Operations | Diabetes And Obesity Care | Fast-acting insulin | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 10,808 | 10,304 | 9,332 |
International Operations | Diabetes And Obesity Care | Fiasp | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 832 | 617 | 357 |
International Operations | Diabetes And Obesity Care | U17 NovoLog/NovoRapid | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 9,976 | 9,687 | 8,975 |
International Operations | Diabetes And Obesity Care | Human insulin | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 7,339 | 7,361 | 7,348 |
International Operations | Diabetes And Obesity Care | Total insulin | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 38,352 | 36,407 | 33,484 |
International Operations | Diabetes And Obesity Care | Total GLP-1 | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 10,765 | 8,392 | 6,279 |
International Operations | Diabetes And Obesity Care | Victoza | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 7,095 | 7,249 | 6,240 |
International Operations | Diabetes And Obesity Care | Ozempic | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 3,634 | 1,143 | 39 |
International Operations | Diabetes And Obesity Care | Rybelsus | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 36 | 0 | 0 |
International Operations | Diabetes And Obesity Care | Other Diabetes care | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 2,946 | 3,389 | 3,360 |
International Operations | Diabetes And Obesity Care | Total Diabetes care | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 52,063 | 48,188 | 43,123 |
International Operations | Diabetes And Obesity Care | Obesity care Saxenda | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 2,118 | 2,083 | 1,211 |
International Operations | Biopharm | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 11,648 | 11,293 | 10,589 |
International Operations | Biopharm | Haemophilia | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 5,708 | 5,946 | 5,572 |
International Operations | Biopharm | NovoSeven | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 3,996 | 4,502 | 4,424 |
International Operations | Biopharm | NovoEight | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 1,127 | 1,143 | 1,046 |
International Operations | Biopharm | Growth disorders | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 4,832 | 4,225 | 4,000 |
International Operations | Biopharm | Other Biopharm | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 1,108 | 1,122 | 1,017 |
EMEA | |||
Disclosure of geographical areas [line items] | |||
Total net sales | kr 34,297 | kr 32,208 | kr 29,226 |
Total sales growth as reported (as a percent) | 6.50% | 10.20% | 2.50% |
EMEA | Diabetes And Obesity Care | |||
Disclosure of geographical areas [line items] | |||
Total net sales | kr 27,612 | kr 25,690 | kr 22,833 |
EMEA | Diabetes And Obesity Care | Long-acting insulin | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 6,451 | 5,955 | 5,289 |
EMEA | Diabetes And Obesity Care | Tresiba | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 2,574 | 1,983 | 1,479 |
EMEA | Diabetes And Obesity Care | Xultophy | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 1,605 | 1,407 | 1,060 |
EMEA | Diabetes And Obesity Care | Levemir | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 2,272 | 2,565 | 2,750 |
EMEA | Diabetes And Obesity Care | Premix insulin | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 2,959 | 3,160 | 3,034 |
EMEA | Diabetes And Obesity Care | Ryzodeg | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 321 | 237 | 152 |
EMEA | Diabetes And Obesity Care | NovoRapid/NovoLog | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 2,638 | 2,923 | 2,882 |
EMEA | Diabetes And Obesity Care | Fast-acting insulin | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 6,584 | 6,422 | 5,931 |
EMEA | Diabetes And Obesity Care | Fiasp | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 764 | 585 | 357 |
EMEA | Diabetes And Obesity Care | U17 NovoLog/NovoRapid | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 5,820 | 5,837 | 5,574 |
EMEA | Diabetes And Obesity Care | Human insulin | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 2,370 | 2,438 | 2,592 |
EMEA | Diabetes And Obesity Care | Total insulin | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 18,364 | 17,975 | 16,846 |
EMEA | Diabetes And Obesity Care | Total GLP-1 | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 7,399 | 5,682 | 4,376 |
EMEA | Diabetes And Obesity Care | Victoza | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 4,251 | 4,713 | 4,337 |
EMEA | Diabetes And Obesity Care | Ozempic | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 3,112 | 969 | 39 |
EMEA | Diabetes And Obesity Care | Rybelsus | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 36 | 0 | 0 |
EMEA | Diabetes And Obesity Care | Other Diabetes care | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 725 | 1,052 | 1,064 |
EMEA | Diabetes And Obesity Care | Total Diabetes care | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 26,488 | 24,709 | 22,286 |
EMEA | Diabetes And Obesity Care | Obesity care Saxenda | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 1,124 | 981 | 547 |
EMEA | Biopharm | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 6,685 | 6,518 | 6,393 |
EMEA | Biopharm | Haemophilia | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 3,579 | 3,646 | 3,604 |
EMEA | Biopharm | NovoSeven | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 2,352 | 2,577 | 2,694 |
EMEA | Biopharm | NovoEight | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 790 | 844 | 836 |
EMEA | Biopharm | Growth disorders | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 2,220 | 1,960 | 1,972 |
EMEA | Biopharm | Other Biopharm | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 886 | 912 | 817 |
China | |||
Disclosure of geographical areas [line items] | |||
Total net sales | kr 14,084 | kr 12,844 | kr 11,285 |
Total sales growth as reported (as a percent) | 9.70% | 13.80% | 5.40% |
China | Diabetes And Obesity Care | |||
Disclosure of geographical areas [line items] | |||
Total net sales | kr 13,652 | kr 12,519 | kr 11,062 |
China | Diabetes And Obesity Care | Long-acting insulin | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 1,471 | 1,059 | 814 |
China | Diabetes And Obesity Care | Tresiba | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 418 | 87 | 16 |
China | Diabetes And Obesity Care | Xultophy | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 1 | 0 | 0 |
China | Diabetes And Obesity Care | Levemir | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 1,052 | 972 | 798 |
China | Diabetes And Obesity Care | Premix insulin | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 4,852 | 4,306 | 3,783 |
China | Diabetes And Obesity Care | Ryzodeg | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 39 | 4 | 0 |
China | Diabetes And Obesity Care | NovoRapid/NovoLog | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 4,813 | 4,302 | 3,783 |
China | Diabetes And Obesity Care | Fast-acting insulin | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 2,075 | 1,753 | 1,450 |
China | Diabetes And Obesity Care | Fiasp | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 0 | 0 | 0 |
China | Diabetes And Obesity Care | U17 NovoLog/NovoRapid | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 2,075 | 1,753 | 1,450 |
China | Diabetes And Obesity Care | Human insulin | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 2,655 | 2,847 | 2,821 |
China | Diabetes And Obesity Care | Total insulin | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 11,053 | 9,965 | 8,868 |
China | Diabetes And Obesity Care | Total GLP-1 | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 1,043 | 898 | 521 |
China | Diabetes And Obesity Care | Victoza | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 1,033 | 898 | 521 |
China | Diabetes And Obesity Care | Ozempic | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 10 | 0 | 0 |
China | Diabetes And Obesity Care | Rybelsus | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 0 | 0 | 0 |
China | Diabetes And Obesity Care | Other Diabetes care | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 1,546 | 1,647 | 1,672 |
China | Diabetes And Obesity Care | Total Diabetes care | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 13,642 | 12,510 | 11,061 |
China | Diabetes And Obesity Care | Obesity care Saxenda | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 10 | 9 | 1 |
China | Biopharm | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 432 | 325 | 223 |
China | Biopharm | Haemophilia | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 361 | 284 | 199 |
China | Biopharm | NovoSeven | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 345 | 269 | 194 |
China | Biopharm | NovoEight | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 16 | 15 | 5 |
China | Biopharm | Growth disorders | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 66 | 36 | 20 |
China | Biopharm | Other Biopharm | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 5 | 5 | 4 |
Rest of World | |||
Disclosure of geographical areas [line items] | |||
Total net sales | kr 17,448 | kr 16,512 | kr 14,412 |
Total sales growth as reported (as a percent) | 5.70% | 14.60% | (0.30%) |
Rest of World | Diabetes And Obesity Care | |||
Disclosure of geographical areas [line items] | |||
Total net sales | kr 12,917 | kr 12,062 | kr 10,439 |
Rest of World | Diabetes And Obesity Care | Long-acting insulin | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 2,037 | 2,021 | 1,839 |
Rest of World | Diabetes And Obesity Care | Tresiba | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 1,415 | 1,407 | 1,269 |
Rest of World | Diabetes And Obesity Care | Xultophy | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 183 | 86 | 25 |
Rest of World | Diabetes And Obesity Care | Levemir | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 439 | 528 | 545 |
Rest of World | Diabetes And Obesity Care | Premix insulin | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 2,435 | 2,241 | 2,045 |
Rest of World | Diabetes And Obesity Care | Ryzodeg | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 931 | 752 | 562 |
Rest of World | Diabetes And Obesity Care | NovoRapid/NovoLog | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 1,504 | 1,489 | 1,483 |
Rest of World | Diabetes And Obesity Care | Fast-acting insulin | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 2,149 | 2,129 | 1,951 |
Rest of World | Diabetes And Obesity Care | Fiasp | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 68 | 32 | 0 |
Rest of World | Diabetes And Obesity Care | U17 NovoLog/NovoRapid | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 2,081 | 2,097 | 1,951 |
Rest of World | Diabetes And Obesity Care | Human insulin | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 2,314 | 2,076 | 1,935 |
Rest of World | Diabetes And Obesity Care | Total insulin | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 8,935 | 8,467 | 7,770 |
Rest of World | Diabetes And Obesity Care | Total GLP-1 | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 2,323 | 1,812 | 1,382 |
Rest of World | Diabetes And Obesity Care | Victoza | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 1,811 | 1,638 | 1,382 |
Rest of World | Diabetes And Obesity Care | Ozempic | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 512 | 174 | 0 |
Rest of World | Diabetes And Obesity Care | Rybelsus | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 0 | 0 | 0 |
Rest of World | Diabetes And Obesity Care | Other Diabetes care | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 675 | 690 | 624 |
Rest of World | Diabetes And Obesity Care | Total Diabetes care | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 11,933 | 10,969 | 9,776 |
Rest of World | Diabetes And Obesity Care | Obesity care Saxenda | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 984 | 1,093 | 663 |
Rest of World | Biopharm | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 4,531 | 4,450 | 3,973 |
Rest of World | Biopharm | Haemophilia | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 1,768 | 2,016 | 1,769 |
Rest of World | Biopharm | NovoSeven | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 1,299 | 1,656 | 1,536 |
Rest of World | Biopharm | NovoEight | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 321 | 284 | 205 |
Rest of World | Biopharm | Growth disorders | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 2,546 | 2,229 | 2,008 |
Rest of World | Biopharm | Other Biopharm | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 217 | 205 | 196 |
North America Operations | |||
Disclosure of geographical areas [line items] | |||
Total net sales | kr 61,117 | kr 60,457 | kr 56,908 |
Total sales growth as reported (as a percent) | 1.10% | 6.20% | (1.90%) |
North America Operations | Diabetes And Obesity Care | |||
Disclosure of geographical areas [line items] | |||
Total net sales | kr 53,839 | kr 52,569 | kr 49,570 |
North America Operations | Diabetes And Obesity Care | Long-acting insulin | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 8,480 | 11,741 | 12,902 |
North America Operations | Diabetes And Obesity Care | Tresiba | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 4,561 | 5,782 | 5,271 |
North America Operations | Diabetes And Obesity Care | Xultophy | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 655 | 717 | 529 |
North America Operations | Diabetes And Obesity Care | Levemir | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 3,264 | 5,242 | 7,102 |
North America Operations | Diabetes And Obesity Care | Premix insulin | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 679 | 871 | 1,332 |
North America Operations | Diabetes And Obesity Care | Ryzodeg | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 0 | 0 | 0 |
North America Operations | Diabetes And Obesity Care | NovoRapid/NovoLog | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 679 | 871 | 1,332 |
North America Operations | Diabetes And Obesity Care | Fast-acting insulin | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 7,505 | 8,999 | 10,021 |
North America Operations | Diabetes And Obesity Care | Fiasp | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 553 | 626 | 233 |
North America Operations | Diabetes And Obesity Care | U17 NovoLog/NovoRapid | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 6,952 | 8,373 | 9,788 |
North America Operations | Diabetes And Obesity Care | Human insulin | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 1,534 | 1,675 | 1,917 |
North America Operations | Diabetes And Obesity Care | Total insulin | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 18,198 | 23,286 | 26,172 |
North America Operations | Diabetes And Obesity Care | Total GLP-1 | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 31,066 | 24,829 | 19,850 |
North America Operations | Diabetes And Obesity Care | Victoza | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 11,652 | 14,685 | 18,093 |
North America Operations | Diabetes And Obesity Care | Ozempic | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 17,577 | 10,094 | 1,757 |
North America Operations | Diabetes And Obesity Care | Rybelsus | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 1,837 | 50 | 0 |
North America Operations | Diabetes And Obesity Care | Other Diabetes care | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 1,085 | 858 | 890 |
North America Operations | Diabetes And Obesity Care | Total Diabetes care | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 50,349 | 48,973 | 46,912 |
North America Operations | Diabetes And Obesity Care | Obesity care Saxenda | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 3,490 | 3,596 | 2,658 |
North America Operations | Biopharm | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 7,278 | 7,888 | 7,338 |
North America Operations | Biopharm | Haemophilia | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 3,954 | 4,335 | 4,004 |
North America Operations | Biopharm | NovoSeven | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 3,207 | 3,617 | 3,457 |
North America Operations | Biopharm | NovoEight | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 335 | 382 | 308 |
North America Operations | Biopharm | Growth disorders | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 2,872 | 3,050 | 2,834 |
North America Operations | Biopharm | Other Biopharm | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 452 | 503 | 500 |
Of which the US | |||
Disclosure of geographical areas [line items] | |||
Total net sales | kr 57,824 | kr 57,486 | kr 54,488 |
Total sales growth as reported (as a percent) | 0.60% | 5.50% | (2.40%) |
Of which the US | Diabetes And Obesity Care | |||
Disclosure of geographical areas [line items] | |||
Total net sales | kr 51,087 | kr 50,173 | kr 47,680 |
Of which the US | Diabetes And Obesity Care | Long-acting insulin | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 7,962 | 11,271 | 12,600 |
Of which the US | Diabetes And Obesity Care | Tresiba | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 4,191 | 5,500 | 5,192 |
Of which the US | Diabetes And Obesity Care | Xultophy | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 642 | 708 | 528 |
Of which the US | Diabetes And Obesity Care | Levemir | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 3,129 | 5,063 | 6,880 |
Of which the US | Diabetes And Obesity Care | Premix insulin | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 652 | 839 | 1,294 |
Of which the US | Diabetes And Obesity Care | Ryzodeg | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 0 | 0 | 0 |
Of which the US | Diabetes And Obesity Care | NovoRapid/NovoLog | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 652 | 839 | 1,294 |
Of which the US | Diabetes And Obesity Care | Fast-acting insulin | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 7,101 | 8,592 | 9,634 |
Of which the US | Diabetes And Obesity Care | Fiasp | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 519 | 597 | 211 |
Of which the US | Diabetes And Obesity Care | U17 NovoLog/NovoRapid | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 6,582 | 7,995 | 9,423 |
Of which the US | Diabetes And Obesity Care | Human insulin | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 1,431 | 1,552 | 1,778 |
Of which the US | Diabetes And Obesity Care | Total insulin | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 17,146 | 22,254 | 25,306 |
Of which the US | Diabetes And Obesity Care | Total GLP-1 | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 29,768 | 23,866 | 19,195 |
Of which the US | Diabetes And Obesity Care | Victoza | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 11,292 | 14,217 | 17,561 |
Of which the US | Diabetes And Obesity Care | Ozempic | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 16,650 | 9,599 | 1,634 |
Of which the US | Diabetes And Obesity Care | Rybelsus | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 1,826 | 50 | 0 |
Of which the US | Diabetes And Obesity Care | Other Diabetes care | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 943 | 705 | 733 |
Of which the US | Diabetes And Obesity Care | Total Diabetes care | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 47,857 | 46,825 | 45,234 |
Of which the US | Diabetes And Obesity Care | Obesity care Saxenda | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 3,230 | 3,348 | 2,446 |
Of which the US | Biopharm | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 6,737 | 7,313 | 6,808 |
Of which the US | Biopharm | Haemophilia | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 3,675 | 4,031 | 3,723 |
Of which the US | Biopharm | NovoSeven | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 3,089 | 3,454 | 3,278 |
Of which the US | Biopharm | NovoEight | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 312 | 358 | 291 |
Of which the US | Biopharm | Growth disorders | |||
Disclosure of geographical areas [line items] | |||
Total net sales | 2,854 | 3,035 | 2,823 |
Of which the US | Biopharm | Other Biopharm | |||
Disclosure of geographical areas [line items] | |||
Total net sales | kr 208 | kr 247 | kr 262 |
Results for the year - Research
Results for the year - Research and Development Costs - Research and Development Costs (Details) - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Analysis of income and expense [abstract] | |||
Employee costs (note 2.4) | kr 6,269 | kr 5,968 | kr 6,288 |
Amortisation and impairment losses, intangible assets (note 3.1) | 1,025 | 522 | 769 |
Depreciation and impairment losses, property, plant and equipment (note 3.1) | 724 | 783 | 468 |
Other research and development costs | 7,444 | 6,947 | 7,280 |
Total research and development costs | kr 15,462 | kr 14,220 | kr 14,805 |
As percentage of net sales | 12.20% | 11.70% | 13.20% |
Results for the year - Employee
Results for the year - Employee costs - Employee Costs (Details) kr in Millions | 12 Months Ended | ||
Dec. 31, 2020DKK (kr)employee | Dec. 31, 2019DKK (kr)employee | Dec. 31, 2018DKK (kr)employee | |
Analysis of income and expense [abstract] | |||
Wages and salaries | kr 26,778 | kr 25,335 | kr 25,259 |
Share-based payment costs (note 5.1) | 823 | 363 | 414 |
Pensions – defined contribution plans | 1,961 | 1,910 | 1,791 |
Pensions – defined benefit plans (note 3.5) | 138 | 151 | 73 |
Other social security contributions | 1,862 | 1,963 | 1,901 |
Other employee costs | 2,044 | 2,203 | 2,087 |
Total employee costs for the year | 33,606 | 31,925 | 31,525 |
Employee costs capitalised as intangible assets and property, plant and equipment | (1,279) | (1,314) | (1,500) |
Change in employee costs capitalised as inventories | (60) | (139) | (105) |
Total employee costs in the income statement | 32,267 | 30,472 | 29,920 |
Cost of goods sold | 8,896 | 8,134 | 8,164 |
Sales and distribution costs | 14,146 | 13,463 | 12,214 |
Research and development costs | 6,269 | 5,968 | 6,288 |
Administrative costs | 2,848 | 2,679 | 2,755 |
Other operating income, net | kr 108 | kr 228 | kr 499 |
Number of employees | |||
Average number of full-time employees | employee | 43,759 | 42,218 | 42,881 |
Year-end number of full-time employees | employee | 44,723 | 42,703 | 42,672 |
Employees (total) | employee | 45,323 | 43,258 | 43,202 |
Results for the year - Employ_2
Results for the year - Employee costs - Remuneration to Executive Management and Board of Directors (Details) - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of transactions between related parties [line items] | |||
Total | kr 224 | kr 219 | kr 195 |
Key management personnel compensation | 224 | 219 | 195 |
Executive Management | |||
Disclosure of transactions between related parties [line items] | |||
Salary and short-term incentive | 119 | 120 | 102 |
Pension | 26 | 26 | 22 |
Benefits | 10 | 14 | 4 |
Share-based incentive | 52 | 40 | 22 |
Severance payments | 0 | 0 | 28 |
Board of Directors | |||
Disclosure of transactions between related parties [line items] | |||
Total | 17 | 19 | 17 |
Key management personnel compensation | 17 | 19 | 17 |
Executive Management | |||
Disclosure of transactions between related parties [line items] | |||
Total | 207 | 200 | 178 |
Key management personnel compensation | 207 | 200 | 178 |
Registered Executive Management | |||
Disclosure of transactions between related parties [line items] | |||
Total | 141 | 135 | 142 |
Key management personnel compensation | kr 141 | kr 135 | kr 142 |
Results for the year - Income t
Results for the year - Income taxes and deferred income taxes - Income Taxes Expensed (Details) - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Analysis of income and expense [abstract] | |||
Current tax on profit for the year | kr 11,557 | kr 11,275 | kr 10,469 |
Deferred tax on profit for the year | 1,105 | (1,559) | (1,007) |
Tax on profit for the year | 12,662 | 9,716 | 9,462 |
Current tax adjustments recognised for prior years | (563) | (191) | (522) |
Deferred tax adjustments recognised for prior years | (1,107) | 77 | 47 |
Income taxes in the income statement | 10,992 | 9,602 | 8,987 |
Tax on other comprehensive income for the year, (income)/expense | kr 577 | kr 231 | kr (755) |
Results for the year - Income_2
Results for the year - Income taxes and deferred income taxes - Computation of Effective Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of average effective tax rate and applicable tax rate [abstract] | |||
Statutory corporate income tax rate in Denmark | 22.00% | 22.00% | 22.00% |
Deviation in foreign subsidiaries’ tax rates compared to the Danish tax rate (net) | (2.50%) | (2.10%) | (1.90%) |
Non-taxable income less non-tax-deductible expenses (net) | (0.20%) | 0.10% | (0.20%) |
Other adjustments (net) | 1.40% | (0.20%) | (1.00%) |
Effective tax rate | 20.70% | 19.80% | 18.90% |
Results for the year - Income_3
Results for the year - Income taxes and deferred income taxes - Income Taxes Paid (Details) - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Analysis of income and expense [abstract] | |||
Income taxes paid in Denmark for current year | kr 4,262 | kr 7,774 | kr 6,640 |
Income taxes paid outside Denmark for current year | 4,508 | 2,258 | 2,376 |
Income taxes paid/repayments relating to prior years | 1,336 | 904 | 598 |
Income taxes paid | kr 10,106 | kr 10,936 | kr 9,614 |
Results for the year - Income_4
Results for the year - Income taxes and deferred income taxes - Narrative (Details) kr in Millions | Dec. 31, 2020DKK (kr) | Dec. 31, 2019DKK (kr) |
Analysis of income and expense [abstract] | ||
Other tax adjustments (in percentage) | 0.04 | |
Potential withholding tax amounts related to distribution of earnings | kr 337 | kr 315 |
Unrecognised tax loss carry-forwards | kr 628 | kr 144 |
Results for the year - Income_5
Results for the year - Income taxes and deferred income taxes - Development in Deferred Income Tax Assets and Liabilities (Details) - DKK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Net deferred tax asset/(liability) at 1 January | kr 4,041 | kr 2,775 |
Income/(charge) to the income statement | 2 | 1,482 |
Income/(charge) to other comprehensive income | (577) | (231) |
Income/(charge) to equity | (72) | 18 |
Acquisition of subsidiaries | 276 | |
Disposal of subsidiaries | (18) | |
Effect of exchange rate adjustment | (307) | 15 |
Net deferred tax asset/(liability) at 31 December | 3,363 | 4,041 |
Deferred income tax assets | 5,865 | 4,121 |
Deferred tax liability at 31 December | (2,502) | (80) |
Before Offset with countries | Property, plant and equipment | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Net deferred tax asset/(liability) at 1 January | (1,591) | (703) |
Income/(charge) to the income statement | (47) | (5) |
Income/(charge) to other comprehensive income | 0 | 0 |
Income/(charge) to equity | 0 | 0 |
Acquisition of subsidiaries | 0 | |
Disposal of subsidiaries | 0 | |
Effect of exchange rate adjustment | 24 | (18) |
Net deferred tax asset/(liability) at 31 December | (1,614) | (1,591) |
Deferred income tax assets | 755 | 769 |
Deferred tax liability at 31 December | (2,369) | (2,360) |
Before Offset with countries | Intangible assets | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Net deferred tax asset/(liability) at 1 January | (718) | (564) |
Income/(charge) to the income statement | (2,883) | (155) |
Income/(charge) to other comprehensive income | 92 | 0 |
Income/(charge) to equity | (92) | 0 |
Acquisition of subsidiaries | 0 | |
Disposal of subsidiaries | 0 | |
Effect of exchange rate adjustment | 1 | 1 |
Net deferred tax asset/(liability) at 31 December | (3,600) | (718) |
Deferred income tax assets | 46 | 58 |
Deferred tax liability at 31 December | (3,646) | (776) |
Before Offset with countries | Inventories | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Net deferred tax asset/(liability) at 1 January | 1,811 | 973 |
Income/(charge) to the income statement | 963 | 820 |
Income/(charge) to other comprehensive income | (216) | 18 |
Income/(charge) to equity | 0 | 0 |
Acquisition of subsidiaries | 0 | |
Disposal of subsidiaries | 0 | |
Effect of exchange rate adjustment | (2) | 0 |
Net deferred tax asset/(liability) at 31 December | 2,556 | 1,811 |
Deferred income tax assets | 2,568 | 3,428 |
Deferred tax liability at 31 December | (12) | (1,617) |
Before Offset with countries | Liabilities | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Net deferred tax asset/(liability) at 1 January | 3,452 | 2,402 |
Income/(charge) to the income statement | 1,449 | 133 |
Income/(charge) to other comprehensive income | 16 | 47 |
Income/(charge) to equity | 0 | 0 |
Acquisition of subsidiaries | 0 | |
Disposal of subsidiaries | (18) | |
Effect of exchange rate adjustment | (300) | 23 |
Net deferred tax asset/(liability) at 31 December | 4,617 | 3,452 |
Deferred income tax assets | 4,895 | 3,580 |
Deferred tax liability at 31 December | (278) | (128) |
Before Offset with countries | Other | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Net deferred tax asset/(liability) at 1 January | 1,087 | 667 |
Income/(charge) to the income statement | 520 | 689 |
Income/(charge) to other comprehensive income | (469) | (296) |
Income/(charge) to equity | 20 | 18 |
Acquisition of subsidiaries | 276 | |
Disposal of subsidiaries | 0 | |
Effect of exchange rate adjustment | (30) | 9 |
Net deferred tax asset/(liability) at 31 December | 1,404 | 1,087 |
Deferred income tax assets | 2,903 | 1,843 |
Deferred tax liability at 31 December | (1,499) | (756) |
Offset within countries | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Net deferred tax asset/(liability) at 1 January | 0 | 0 |
Disposal of subsidiaries | ||
Net deferred tax asset/(liability) at 31 December | 0 | 0 |
Deferred income tax assets | 5,302 | 5,557 |
Deferred tax liability at 31 December | (5,302) | (5,557) |
IFRS 16 | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Net deferred tax asset/(liability) at 1 January | 0 | |
Net deferred tax asset/(liability) at 31 December | 0 | |
IFRS 16 | Before Offset with countries | Property, plant and equipment | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Net deferred tax asset/(liability) at 1 January | (865) | |
Net deferred tax asset/(liability) at 31 December | (865) | |
IFRS 16 | Before Offset with countries | Intangible assets | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Net deferred tax asset/(liability) at 1 January | 0 | |
Net deferred tax asset/(liability) at 31 December | 0 | |
IFRS 16 | Before Offset with countries | Inventories | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Net deferred tax asset/(liability) at 1 January | 0 | |
Net deferred tax asset/(liability) at 31 December | 0 | |
IFRS 16 | Before Offset with countries | Liabilities | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Net deferred tax asset/(liability) at 1 January | 865 | |
Net deferred tax asset/(liability) at 31 December | 865 | |
IFRS 16 | Before Offset with countries | Other | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Net deferred tax asset/(liability) at 1 January | kr 0 | |
Net deferred tax asset/(liability) at 31 December | kr 0 |
Operating assets and liabilit_3
Operating assets and liabilities - Intangible assets and property, plant and equipment - Intangible assets and property, plant and equipment (Details) - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Cost at the beginning of the year | kr 20,657 | kr 5,835 | |
Change in accounting policy, leases | 978 | 640 | |
Total amortisation | 1,096 | 487 | kr 1,000 |
Total impairment losses | 350 | 982 | 0 |
Intangible assets other than goodwill | 20,657 | 5,835 | |
Reconciliation of changes in property, plant and equipment [abstract] | |||
Cost at the beginning of the year | 50,551 | ||
Change in accounting policy, leases | 978 | 640 | |
End of the year | 50,269 | 50,551 | |
Land and buildings | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Cost at the beginning of the year | 18,732 | ||
End of the year | 24,573 | 18,732 | |
Plant and machinery | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Cost at the beginning of the year | 8,706 | ||
End of the year | 12,059 | 8,706 | |
Other equipment | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Cost at the beginning of the year | 2,762 | ||
End of the year | 2,839 | 2,762 | |
Assets under construction | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Cost at the beginning of the year | 20,351 | ||
End of the year | 10,798 | 20,351 | |
Patents and licences | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Cost at the beginning of the year | 19,269 | 4,627 | |
Total impairment losses | 350 | 982 | |
Intangible assets other than goodwill | 19,269 | 4,627 | |
Software and other intangibles | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Cost at the beginning of the year | 1,388 | 1,208 | |
Intangible assets other than goodwill | 1,388 | 1,208 | |
Gross carrying amount | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Cost at the beginning of the year | 25,340 | 9,830 | 7,659 |
Change in accounting policy, leases | 3,778 | ||
Additions during the year | 16,302 | 2,179 | |
Disposals during the year | (698) | (79) | |
Transfer and reclassifications | 0 | 0 | |
Effect of exchange rate adjustment | (94) | 71 | |
Intangible assets other than goodwill | 25,340 | 9,830 | 7,659 |
Reconciliation of changes in property, plant and equipment [abstract] | |||
Cost at the beginning of the year | 84,420 | 72,438 | |
Change in accounting policy, leases | 3,778 | ||
Additions during the year | 6,297 | 8,983 | |
Disposals, property, plant and equipment | (840) | (1,229) | |
Transfer and reclassifications | 0 | 0 | |
Effect of exchange rate adjustment | (3,191) | 450 | |
End of the year | 86,686 | 84,420 | 72,438 |
Gross carrying amount | Land and buildings | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Change in accounting policy, leases | 3,291 | ||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Cost at the beginning of the year | 30,260 | 25,401 | |
Change in accounting policy, leases | 3,291 | ||
Additions during the year | 741 | 555 | |
Disposals, property, plant and equipment | (119) | (407) | |
Transfer and reclassifications | 7,440 | 1,277 | |
Effect of exchange rate adjustment | (813) | 143 | |
End of the year | 37,509 | 30,260 | 25,401 |
Gross carrying amount | Plant and machinery | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Change in accounting policy, leases | 0 | ||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Cost at the beginning of the year | 27,594 | 25,412 | |
Change in accounting policy, leases | 0 | ||
Additions during the year | 506 | 350 | |
Disposals, property, plant and equipment | (583) | (504) | |
Transfer and reclassifications | 4,586 | 2,248 | |
Effect of exchange rate adjustment | (600) | 88 | |
End of the year | 31,503 | 27,594 | 25,412 |
Gross carrying amount | Other equipment | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Change in accounting policy, leases | 487 | ||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Cost at the beginning of the year | 6,215 | 4,779 | |
Change in accounting policy, leases | 487 | ||
Additions during the year | 490 | 498 | |
Disposals, property, plant and equipment | (122) | (244) | |
Transfer and reclassifications | 515 | 665 | |
Effect of exchange rate adjustment | (222) | 30 | |
End of the year | 6,876 | 6,215 | 4,779 |
Gross carrying amount | Assets under construction | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Change in accounting policy, leases | 0 | ||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Cost at the beginning of the year | 20,351 | 16,846 | |
Change in accounting policy, leases | 0 | ||
Additions during the year | 4,560 | 7,580 | |
Disposals, property, plant and equipment | (16) | (74) | |
Transfer and reclassifications | (12,541) | (4,190) | |
Effect of exchange rate adjustment | (1,556) | 189 | |
End of the year | 10,798 | 20,351 | 16,846 |
Gross carrying amount | Patents and licences | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Cost at the beginning of the year | 22,404 | 7,270 | 5,247 |
Change in accounting policy, leases | 0 | ||
Additions during the year | 15,906 | 1,958 | |
Disposals during the year | (698) | 0 | |
Transfer and reclassifications | 0 | 0 | |
Effect of exchange rate adjustment | (74) | 65 | |
Intangible assets other than goodwill | 22,404 | 7,270 | 5,247 |
Reconciliation of changes in property, plant and equipment [abstract] | |||
Change in accounting policy, leases | 0 | ||
Gross carrying amount | Software and other intangibles | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Cost at the beginning of the year | 2,936 | 2,560 | 2,412 |
Change in accounting policy, leases | 0 | ||
Additions during the year | 396 | 221 | |
Disposals during the year | 0 | (79) | |
Transfer and reclassifications | 0 | 0 | |
Effect of exchange rate adjustment | (20) | 6 | |
Intangible assets other than goodwill | 2,936 | 2,560 | 2,412 |
Reconciliation of changes in property, plant and equipment [abstract] | |||
Change in accounting policy, leases | 0 | ||
Gross carrying amount | Intangible assets and goodwill | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Change in accounting policy, leases | 0 | ||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Change in accounting policy, leases | 0 | ||
Depreciation and impairment losses | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Cost at the beginning of the year | (4,683) | (3,995) | (2,514) |
Effect of exchange rate adjustment | (60) | 30 | |
Total amortisation | 1,096 | 487 | |
Total impairment losses | 350 | 982 | |
Amortisation/depreciation and impairment losses reversed on disposals during the year | (698) | (18) | |
Intangible assets other than goodwill | (4,683) | (3,995) | (2,514) |
Reconciliation of changes in property, plant and equipment [abstract] | |||
Cost at the beginning of the year | (33,869) | (30,547) | |
Effect of exchange rate adjustment | (928) | 97 | |
Amortisation/depreciation for the year | 4,180 | 3,971 | |
Impairment losses for the year | 127 | 221 | |
Reversal of impairment loss recognised in profit or loss, property, plant and equipment | (831) | (967) | |
End of the year | (36,417) | (33,869) | (30,547) |
Depreciation and impairment losses | Land and buildings | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Cost at the beginning of the year | (11,528) | (9,770) | |
Effect of exchange rate adjustment | (346) | 43 | |
Amortisation/depreciation for the year | 1,859 | 1,818 | |
Impairment losses for the year | 14 | 57 | |
Reversal of impairment loss recognised in profit or loss, property, plant and equipment | (119) | (160) | |
End of the year | (12,936) | (11,528) | (9,770) |
Depreciation and impairment losses | Plant and machinery | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Cost at the beginning of the year | (18,888) | (17,871) | |
Effect of exchange rate adjustment | (432) | 41 | |
Amortisation/depreciation for the year | 1,500 | 1,410 | |
Impairment losses for the year | 69 | 70 | |
Reversal of impairment loss recognised in profit or loss, property, plant and equipment | (581) | (504) | |
End of the year | (19,444) | (18,888) | (17,871) |
Depreciation and impairment losses | Other equipment | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Cost at the beginning of the year | (3,453) | (2,906) | |
Effect of exchange rate adjustment | (150) | 13 | |
Amortisation/depreciation for the year | 821 | 743 | |
Impairment losses for the year | 28 | 20 | |
Reversal of impairment loss recognised in profit or loss, property, plant and equipment | (115) | (229) | |
End of the year | (4,037) | (3,453) | (2,906) |
Depreciation and impairment losses | Assets under construction | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Cost at the beginning of the year | 0 | 0 | |
Effect of exchange rate adjustment | 0 | 0 | |
Amortisation/depreciation for the year | 0 | 0 | |
Impairment losses for the year | 16 | 74 | |
Reversal of impairment loss recognised in profit or loss, property, plant and equipment | (16) | (74) | |
End of the year | 0 | 0 | 0 |
Depreciation and impairment losses | Patents and licences | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Cost at the beginning of the year | (3,135) | (2,643) | (1,390) |
Effect of exchange rate adjustment | (49) | 27 | |
Total amortisation | 889 | 312 | |
Total impairment losses | 350 | 914 | |
Amortisation/depreciation and impairment losses reversed on disposals during the year | (698) | 0 | |
Intangible assets other than goodwill | (3,135) | (2,643) | (1,390) |
Depreciation and impairment losses | Software and other intangibles | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Cost at the beginning of the year | (1,548) | (1,352) | (1,124) |
Effect of exchange rate adjustment | (11) | 3 | |
Total amortisation | 207 | 175 | |
Total impairment losses | 0 | 68 | |
Amortisation/depreciation and impairment losses reversed on disposals during the year | 0 | (18) | |
Intangible assets other than goodwill | kr (1,548) | kr (1,352) | kr (1,124) |
Operating assets and liabilit_4
Operating assets and liabilities -Intangible assets and property, plant and equipment - Intangible assets - Amortisation and impairment losses (Details) - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |||
Total amortisation and impairment loss | kr 1,446 | kr 1,469 | kr 1,000 |
Total amortisation | 1,096 | 487 | 1,000 |
Total impairment losses | 350 | 982 | 0 |
Cost of goods sold | |||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |||
Total amortisation and impairment loss | 369 | 916 | 208 |
Sales and distribution costs | |||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |||
Total amortisation and impairment loss | 40 | 24 | 15 |
Research and development costs | |||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |||
Total amortisation and impairment loss | 1,025 | 522 | 769 |
Administrative costs | |||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |||
Total amortisation and impairment loss | 10 | 3 | 2 |
Other operating income, net | |||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |||
Total amortisation and impairment loss | kr 2 | kr 4 | kr 6 |
Operating assets and liabilit_5
Operating assets and liabilities - Intangible assets and property, plant and equipment - Intangible assets - Narrative (Details) kr in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2020DKK (kr) | Dec. 31, 2020USD ($) | Dec. 31, 2019DKK (kr) | Dec. 31, 2018DKK (kr) | |
Disclosure of detailed information about intangible assets [line items] | ||||
Purchase of intangible assets, classified as investing activities | kr 16,256 | kr 2,299 | kr 2,774 | |
Intangible assets | 20,657 | 5,835 | ||
Total impairment losses | 350 | 982 | 0 | |
Impairment loss recognised in cost of goods sold intangible assets other than goodwill | 529 | |||
Impairment loss recognised in research and development intangible assets other than goodwill | 450 | |||
Gross carrying amount | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Additions during the year | 16,302 | 2,179 | ||
Intangible assets | kr 25,340 | 9,830 | 7,659 | |
Emisphere | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Purchase of intangible assets, classified as investing activities | $ | $ 1,335 | |||
Remaining amortisation period of intangible assets material to entity | 14 years | 14 years | ||
Emisphere | Gross carrying amount | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Intangible assets | kr 7,716 | |||
MHR Fund Management | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Purchase of intangible assets, classified as investing activities | $ | $ 450 | |||
Internally generated | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Additions during the year | 396 | 221 | ||
Corvidia Therapeutics, Inc., United States | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Increase (decrease) in intangible assets other than goodwill | 4,580 | |||
Patents and licences | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Intangible assets | 19,269 | 4,627 | ||
Total impairment losses | 350 | 982 | ||
Intangible assets not yet in use | 9,607 | 3,380 | ||
Patents and licences | Gross carrying amount | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Additions during the year | 15,906 | 1,958 | ||
Intangible assets | 22,404 | 7,270 | kr 5,247 | |
Patents and licences | Emisphere | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Additions during the year | 11,060 | |||
Additions other than through Business Combinations, Intangible Assets other than Goodwill, not yet in use | kr 2,467 | |||
Patents and licences | Top of range | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Useful life | 15 years | 15 years | ||
Computer software | Bottom of range | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Useful life | 3 years | 3 years | ||
Computer software | Top of range | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Useful life | 15 years | 15 years | ||
Diabetes and Obesity care | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Total impairment losses | kr 350 | 282 | ||
Biopharm | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Total impairment losses | kr 700 |
Operating assets and liabilit_6
Operating assets and liabilities - Intangible assets and property, plant and equipment - Property, plant and equipment - Depreciation and impairment losses (Details) - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Total depreciation and impairment losses | kr 4,307 | kr 4,192 | kr 2,925 |
Cost of goods sold | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Total depreciation and impairment losses | 2,729 | 2,656 | 2,312 |
Sales and distribution costs | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Total depreciation and impairment losses | 403 | 354 | 69 |
Research and development costs | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Total depreciation and impairment losses | 724 | 783 | 468 |
Administrative costs | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Total depreciation and impairment losses | 433 | 376 | 70 |
Other operating income, net | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Total depreciation and impairment losses | kr 18 | kr 23 | kr 6 |
Operating assets and liabilit_7
Operating assets and liabilities - Intangible assets and property, plant and equipment - Property, plant and equipment - Narrative (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Buildings | Bottom of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 12 years |
Buildings | Top of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 50 years |
Plant and machinery | Bottom of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 5 years |
Plant and machinery | Top of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 25 years |
Other equipment | Bottom of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 3 years |
Other equipment | Top of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 10 years |
Operating assets and liabilit_8
Operating assets and liabilities - Leases - Right-of-use assets in the balance sheet (Details) - DKK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of quantitative information about right-of-use assets [line items] | ||
Balance at 1 January | kr 3,532 | kr 3,778 |
Change in accounting policy, leases | 978 | 640 |
Depreciation for the year | (964) | (852) |
Effect of exchange rate adjustment | (166) | (34) |
Balance at 31 December | 3,380 | 3,532 |
Land and buildings | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Balance at 1 January | 3,029 | 3,291 |
Change in accounting policy, leases | 660 | 333 |
Depreciation for the year | (644) | (564) |
Effect of exchange rate adjustment | (144) | (31) |
Balance at 31 December | 2,901 | 3,029 |
Other equipment | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Balance at 1 January | 503 | 487 |
Change in accounting policy, leases | 318 | 307 |
Depreciation for the year | (320) | (288) |
Effect of exchange rate adjustment | (22) | (3) |
Balance at 31 December | kr 479 | kr 503 |
Operating assets and liabilit_9
Operating assets and liabilities - Leases - Amounts recognised in the income statement (Details) - DKK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | ||
Depreciation | kr 964 | kr 852 |
Interest on lease liabilities | 97 | 108 |
Variable lease expenses | 135 | 113 |
Short-term leases | 98 | 201 |
Lease of low value assets | 79 | 63 |
Total amounts recognised in the income statement | kr 1,373 | kr 1,337 |
Operating assets and liabili_10
Operating assets and liabilities - Leases - Narrative (Details) - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Subclassifications of assets, liabilities and equities [abstract] | |||
Cash outflow for leases | kr 1,367 | kr 1,295 | |
Lease costs | kr 1,299 | ||
Lease liability, amount excluded | kr 2,363 | kr 2,760 |
Operating assets and liabili_11
Operating assets and liabilities - Inventories - Inventories (Details) - DKK (kr) kr in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Inventory, Current [Line Items] | ||||
Total current inventories | kr 17,641 | kr 17,641 | kr 18,536 | kr 17,641 |
Indirect production costs included in work in progress and finished goods | kr 9,703 | kr 9,216 | ||
Share of total inventories (net) | 52.00% | 52.00% | ||
Movements In Inventory Write-Downs [Roll Forward] | ||||
Inventories at the beginning of the year | 17,641 | |||
Write-downs during the year | 1,628 | 414 | ||
Utilisation of write-downs | (528) | (68) | ||
Reversal of write-downs | (373) | (879) | ||
Inventories at the end of the year | 18,536 | 17,641 | ||
Gross amount | ||||
Inventory, Current [Line Items] | ||||
Raw materials | kr 3,326 | kr 2,842 | ||
Work in progress | 12,252 | 11,375 | ||
Finished goods | 5,111 | 4,850 | ||
Total current inventories | 19,067 | 19,067 | 20,689 | 19,067 |
Movements In Inventory Write-Downs [Roll Forward] | ||||
Inventories at the beginning of the year | 19,067 | |||
Inventories at the end of the year | 20,689 | 19,067 | ||
Inventory write-downs | ||||
Inventory, Current [Line Items] | ||||
Total current inventories | (1,426) | (1,959) | kr (2,153) | kr (1,426) |
Movements In Inventory Write-Downs [Roll Forward] | ||||
Inventories at the beginning of the year | (1,426) | (1,959) | ||
Inventories at the end of the year | kr (2,153) | kr (1,426) |
Operating assets and liabili_12
Operating assets and liabilities - Inventories - Narrative (Details) - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of intangible assets material to entity [line items] | |||
Research and development costs | kr 15,462 | kr 14,220 | kr 14,805 |
Indirect production costs (as a percent of net inventory value) | 50.00% | ||
Prelaunch Inventory | |||
Disclosure of intangible assets material to entity [line items] | |||
Research and development costs | kr 510 |
Operating assets and liabili_13
Operating assets and liabilities - Trade receivables - Trade receivables (Details) - Trade receivables - DKK (kr) kr in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Gross carrying amount | kr 29,114 | kr 26,396 | ||
Loss allowance | kr (1,484) | kr (1,370) | (1,380) | (1,484) |
Net carrying amount | 27,734 | 24,912 | ||
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | ||||
Carrying amount at the beginning of the year | (1,484) | (1,370) | ||
Reversal of allowance on realised losses | (108) | (45) | ||
Net movement recognised in income statement | 139 | 158 | ||
Effect of exchange rate adjustment | (135) | 1 | ||
Allowance at the end of the year | (1,380) | (1,484) | ||
Gross carrying amount | 29,114 | 26,396 | ||
Trade receivables | 27,734 | 24,912 | ||
Not yet due | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Gross carrying amount | 27,511 | 24,359 | ||
Loss allowance | (763) | (763) | (805) | (763) |
Net carrying amount | 26,706 | 23,596 | ||
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | ||||
Carrying amount at the beginning of the year | (763) | |||
Allowance at the end of the year | (805) | (763) | ||
Gross carrying amount | 27,511 | 24,359 | ||
Trade receivables | 26,706 | 23,596 | ||
1-90 days | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Gross carrying amount | 1,000 | 1,204 | ||
Loss allowance | (127) | (127) | (112) | (127) |
Net carrying amount | 888 | 1,077 | ||
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | ||||
Carrying amount at the beginning of the year | (127) | |||
Allowance at the end of the year | (112) | (127) | ||
Gross carrying amount | 1,000 | 1,204 | ||
Trade receivables | 888 | 1,077 | ||
91 to 180 days | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Gross carrying amount | 188 | 261 | ||
Loss allowance | (69) | (69) | (63) | (69) |
Net carrying amount | 125 | 192 | ||
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | ||||
Carrying amount at the beginning of the year | (69) | |||
Allowance at the end of the year | (63) | (69) | ||
Gross carrying amount | 188 | 261 | ||
Trade receivables | 125 | 192 | ||
181 to 270 days | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Gross carrying amount | 44 | 96 | ||
Loss allowance | (49) | (49) | (29) | (49) |
Net carrying amount | 15 | 47 | ||
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | ||||
Carrying amount at the beginning of the year | (49) | |||
Allowance at the end of the year | (29) | (49) | ||
Gross carrying amount | 44 | 96 | ||
Trade receivables | 15 | 47 | ||
271 to 360 days | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Gross carrying amount | 51 | 79 | ||
Loss allowance | (79) | (79) | (51) | (79) |
Net carrying amount | 0 | 0 | ||
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | ||||
Carrying amount at the beginning of the year | (79) | |||
Allowance at the end of the year | (51) | (79) | ||
Gross carrying amount | 51 | 79 | ||
Trade receivables | 0 | 0 | ||
More than 360 days past due | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Gross carrying amount | 320 | 397 | ||
Loss allowance | (397) | (397) | (320) | (397) |
Net carrying amount | 0 | 0 | ||
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | ||||
Carrying amount at the beginning of the year | (397) | |||
Allowance at the end of the year | (320) | (397) | ||
Gross carrying amount | 320 | 397 | ||
Trade receivables | 0 | 0 | ||
EMEA | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Gross carrying amount | 6,306 | 7,104 | ||
Loss allowance | (903) | (903) | (781) | (903) |
Net carrying amount | 5,525 | 6,201 | ||
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | ||||
Carrying amount at the beginning of the year | (903) | |||
Allowance at the end of the year | (781) | (903) | ||
Gross carrying amount | 6,306 | 7,104 | ||
Trade receivables | 5,525 | 6,201 | ||
China | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Gross carrying amount | 2,137 | 1,760 | ||
Loss allowance | 0 | 0 | 0 | 0 |
Net carrying amount | 2,137 | 1,760 | ||
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | ||||
Carrying amount at the beginning of the year | 0 | |||
Allowance at the end of the year | 0 | 0 | ||
Gross carrying amount | 2,137 | 1,760 | ||
Trade receivables | 2,137 | 1,760 | ||
Rest of World | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Gross carrying amount | 3,003 | 3,084 | ||
Loss allowance | (568) | (568) | (580) | (568) |
Net carrying amount | 2,423 | 2,516 | ||
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | ||||
Carrying amount at the beginning of the year | (568) | |||
Allowance at the end of the year | (580) | (568) | ||
Gross carrying amount | 3,003 | 3,084 | ||
Trade receivables | 2,423 | 2,516 | ||
North America Operations | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Gross carrying amount | 17,668 | 14,448 | ||
Loss allowance | (13) | (13) | (19) | (13) |
Net carrying amount | 17,649 | 14,435 | ||
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | ||||
Carrying amount at the beginning of the year | (13) | |||
Allowance at the end of the year | kr (19) | kr (13) | ||
Gross carrying amount | 17,668 | 14,448 | ||
Trade receivables | kr 17,649 | kr 14,435 |
Operating assets and liabili_14
Operating assets and liabilities - Retirement benefit obligations - Net retirement benefit obligations (Details) - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of defined benefit plans [line items] | |||
Net defined benefit liability (asset) | kr 1,399 | kr 1,334 | |
Net remeasurement gain (loss) primarily related to changes in financial assumptions | (67) | 187 | |
Post-employment benefit expense, defined benefit plans | 138 | 151 | kr 73 |
Partly funded | |||
Disclosure of defined benefit plans [line items] | |||
Defined benefit obligation, at present value | 1,953 | 1,845 | |
Unfunded | |||
Disclosure of defined benefit plans [line items] | |||
Defined benefit obligation, at present value | 671 | 663 | |
Present value of defined benefit obligation | |||
Disclosure of defined benefit plans [line items] | |||
Net defined benefit liability (asset) | 2,624 | 2,508 | |
Plan assets | |||
Disclosure of defined benefit plans [line items] | |||
Net defined benefit liability (asset) | kr 1,225 | kr 1,174 |
Operating assets and liabili_15
Operating assets and liabilities - Retirement benefit obligations - Key assumptions used for valuation and sensitivity analysis (Details) - DKK (kr) kr in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Actuarial assumption of discount rates | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Discount rate | 1.00% | 1.30% |
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption | kr (403) | kr (366) |
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption | kr 523 | kr 465 |
Percentage of reasonably possible increase in actuarial assumption | 1.00% | |
Percentage of reasonably possible decrease in actuarial assumption | 1.00% | |
Actuarial assumption of expected rates of salary increases | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Future remuneration | 2.20% | 2.40% |
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption | kr 116 | kr 105 |
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption | kr (101) | kr (94) |
Percentage of reasonably possible increase in actuarial assumption | 1.00% | |
Percentage of reasonably possible decrease in actuarial assumption | 1.00% |
Operating assets and liabili_16
Operating assets and liabilities - Provisions and contingent liabilities - Provisions (Details) - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of changes in other provisions [abstract] | |||
At the beginning of the year | kr 35,733 | kr 29,553 | |
Additional provisions, including increases to existing provisions | 113,810 | 104,621 | |
Amount used during the year | (107,220) | (99,244) | |
Adjustments, including unused amounts reversed during the year | 78 | 148 | |
Effect of exchange rate adjustment | (3,061) | 655 | |
At the end of the year | 39,340 | 35,733 | kr 29,553 |
Non-current liabilities | 4,526 | 4,613 | |
Current liabilities | 34,814 | 31,120 | |
Provision for sales rebates | |||
Reconciliation of changes in other provisions [abstract] | |||
At the beginning of the year | 30,878 | 25,760 | 20,374 |
Additional provisions, including increases to existing provisions | 111,921 | 102,782 | 82,631 |
Amount used during the year | (106,116) | (98,655) | (78,647) |
Adjustments, including unused amounts reversed during the year | 166 | ||
Effect of exchange rate adjustment | (2,797) | 610 | 1,016 |
At the end of the year | 34,052 | 30,878 | kr 25,760 |
Non-current liabilities | 301 | ||
Current liabilities | 33,751 | ||
Provisions for legal disputes | |||
Reconciliation of changes in other provisions [abstract] | |||
At the beginning of the year | 2,375 | ||
Additional provisions, including increases to existing provisions | 662 | ||
Amount used during the year | (364) | ||
Adjustments, including unused amounts reversed during the year | 0 | ||
Effect of exchange rate adjustment | (222) | ||
At the end of the year | 2,451 | 2,375 | |
Non-current liabilities | 2,209 | ||
Current liabilities | 242 | ||
Provisions for product returns | |||
Reconciliation of changes in other provisions [abstract] | |||
At the beginning of the year | 1,082 | ||
Additional provisions, including increases to existing provisions | 413 | ||
Amount used during the year | (694) | ||
Adjustments, including unused amounts reversed during the year | 6 | ||
Effect of exchange rate adjustment | 0 | ||
At the end of the year | 795 | 1,082 | |
Non-current liabilities | 293 | ||
Current liabilities | 502 | ||
Other provisions | |||
Reconciliation of changes in other provisions [abstract] | |||
At the beginning of the year | 1,398 | ||
Additional provisions, including increases to existing provisions | 814 | ||
Amount used during the year | (46) | ||
Adjustments, including unused amounts reversed during the year | 82 | ||
Effect of exchange rate adjustment | (42) | ||
At the end of the year | 2,042 | kr 1,398 | |
Non-current liabilities | 1,723 | ||
Current liabilities | kr 319 |
Operating assets and liabili_17
Operating assets and liabilities - Provisions and contingent liabilities - Narrative (Details) kr in Billions | 1 Months Ended | ||
Aug. 31, 2019DKK (kr) | Feb. 03, 2021plaintiff | Dec. 31, 2020segmentlawsuitnumberOfMotions | |
Disclosure of contingent liabilities [line items] | |||
Number of plaintiffs | plaintiff | 384 | ||
Number of plaintiffs who named other defendants | plaintiff | 236 | ||
Number of lawsuits | lawsuit | 6 | ||
Number of putative class action lawsuits | lawsuit | 2 | ||
Number of motions filed by Novo Nordisk | numberOfMotions | 2 | ||
NEW JERSEY | |||
Disclosure of contingent liabilities [line items] | |||
Number of lawsuits | segment | 4 | ||
KENTUCKY | |||
Disclosure of contingent liabilities [line items] | |||
Number of lawsuits | segment | 2 | ||
Product liability lawsuits | |||
Disclosure of contingent liabilities [line items] | |||
Claim total | kr | kr 11.8 |
Capital structure and financi_3
Capital structure and financial items - Earnings per share, distributions to shareholders, treasury shares, share capital and other reserves - Earnings per share (Details) - DKK (kr) kr / shares in Units, shares in Millions, kr in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Capital, Reserves And Other Equity Interest And Financial Instruments [Abstract] | |||
Net profit | kr 42,138 | kr 38,951 | kr 38,628 |
Average number of shares outstanding (in shares) | 2,333.9 | 2,374.3 | 2,419.6 |
Dilutive effect of average outstanding joint share pool (in shares) | 6.1 | 4.4 | 4.8 |
Average number of shares outstanding, including dilutive effect of outstanding joint share pool (in shares) | 2,340 | 2,378.7 | 2,424.4 |
Basic earnings per share (DKK per share) | kr 18.05 | kr 16.41 | kr 15.96 |
Diluted earnings per share (DKK per share) | kr 18.01 | kr 16.38 | kr 15.93 |
Capital structure and financi_4
Capital structure and financial items - Earnings per share, distributions to shareholders, treasury shares, share capital and other reserves - Cash distribution to shareholders (Details) - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Capital, Reserves And Other Equity Interest And Financial Instruments [Abstract] | |||
Interim dividend for the year | kr 7,570 | kr 7,100 | kr 7,238 |
Dividend for prior year | 12,551 | 12,309 | 11,810 |
Share repurchases for the year | 16,855 | 15,334 | 15,567 |
Total | kr 36,976 | kr 34,743 | kr 34,615 |
Capital structure and financi_5
Capital structure and financial items - Earnings per share, distributions to shareholders, treasury shares, share capital and other reserves - Narrative (Details) - DKK (kr) | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of classes of share capital [line items] | |||||
Net cash distribution to shareholders in the form of dividends and share repurchases | kr 36,976,000,000 | kr 34,743,000,000 | kr 34,615,000,000 | ||
Free cash flow | 28,565,000,000 | 34,451,000,000 | 32,536,000,000 | ||
Total dividend for year | kr 21,066,000,000 | kr 19,651,000,000 | |||
Dividends Paid, Ordinary Shares Per Share, Pending Approval | kr 5.85 | ||||
Interim dividend (DKK per share) | kr 3.25 | kr 5.35 | kr 9.10 | kr 8.35 | |
Dividends proposed | kr 13,496,000,000 | ||||
Total dividend | kr 7,570,000,000 | kr 12,551,000,000 | 20,121,000,000 | kr 19,409,000,000 | kr 19,048,000,000 |
Distributable reserves | kr 51,858,000,000 | kr 40,801,000,000 | |||
Treasury shares | |||||
Disclosure of classes of share capital [line items] | |||||
Value of shares (DKK per share) | kr 0.20 | kr 0.20 | |||
Share repurchase programme of Novo Nordisk B shares | |||||
Disclosure of classes of share capital [line items] | |||||
Share repurchase programme, authorized amount | kr 17,000,000,000 | kr 900,000,000 | |||
Share repurchase programme, outstanding at year-end | kr 1,000,000,000 |
Capital structure and financi_6
Capital structure and financial items - Earnings per share, distributions to shareholders, treasury shares, share capital and other reserves - Treasury shares (Details) - DKK (kr) kr / shares in Units, shares in Millions, kr in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in market value of treasury shares | |||
Beginning of the year | kr 57,593 | kr 51,839 | kr 49,815 |
Purchase during the year | 16,855 | 15,334 | 15,567 |
Balance at the end of the year | 63,325 | 57,593 | kr 51,839 |
Treasury shares | |||
Changes in market value of treasury shares | |||
Beginning of the year | 18,613 | ||
Cancellation of treasury shares | (19,333) | ||
Transfer regarding restricted stock units | (148) | ||
Purchase during the year | 16,855 | ||
Value adjustment | 29 | ||
Balance at the end of the year | kr 16,016 | kr 18,613 | |
As % of share capital | |||
Equity, As A Percentage Of Share Capital | 2.00% | ||
Equity, As A Percentage Of Share Capital, After Cancellation Of Treasury Shares | 1.60% | ||
B shares | Treasury shares | |||
Reconciliation of number of shares outstanding [abstract] | |||
Holding at the beginning of the year (in shares) | 48.1 | 55.8 | |
Cancellation of treasury shares (in shares) | (50) | (50) | |
Transfer regarding restricted stock units (in shares) | (0.4) | (2.6) | |
Purchase during the year (in shares) | 39.8 | 44.9 | |
Value adjustment (in shares) | 0 | 0 | |
Holding at the end of the year (in shares) | 37.5 | 48.1 | 55.8 |
Treasury shares [member] | |||
Disclosure of classes of share capital [line items] | |||
Value of shares (DKK per share) | kr 0.20 | kr 0.20 |
Capital structure and financi_7
Capital structure and financial items - Earnings per share, distributions to shareholders, treasury shares, share capital and other reserves - Share capital (Details) - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of classes of share capital [line items] | |||
Beginning of the year | kr 57,593 | kr 51,839 | kr 49,815 |
Cancelled during the period | 0 | 0 | 0 |
Balance at the end of the year | 63,325 | 57,593 | 51,839 |
Share capital | |||
Disclosure of classes of share capital [line items] | |||
Beginning of the year | 480 | 490 | 500 |
Cancelled during the period | (10) | (10) | (10) |
Balance at the end of the year | 470 | 480 | 490 |
Share capital | A share capital | |||
Disclosure of classes of share capital [line items] | |||
Beginning of the year | 107 | 107 | |
Cancelled during the period | 0 | 0 | 0 |
Balance at the end of the year | 107 | 107 | |
Share capital | B share capital | |||
Disclosure of classes of share capital [line items] | |||
Beginning of the year | 373 | 393 | |
Cancelled during the period | (10) | (10) | kr (10) |
Balance at the end of the year | kr 363 | kr 373 |
Capital structure and financi_8
Capital structure and financial items- Share capital Narrative (Details) kr / shares in Units, kr in Millions | Dec. 31, 2020DKK (kr)votekr / sharesshares | Dec. 31, 2019DKK (kr) | Dec. 31, 2018DKK (kr) | Dec. 31, 2017DKK (kr) |
Disclosure of classes of share capital [line items] | ||||
Equity | kr 63,325 | kr 57,593 | kr 51,839 | kr 49,815 |
Share capital | ||||
Disclosure of classes of share capital [line items] | ||||
Equity | 470 | 480 | kr 490 | 500 |
A share capital | Share capital | ||||
Disclosure of classes of share capital [line items] | ||||
Equity | kr 107 | 107 | 107 | |
Number of shares outstanding (in shares) | shares | 537,000,000 | |||
Value of shares (DKK per share) | kr / shares | kr 0.20 | |||
Number of votes | vote | 200 | |||
B share capital | Share capital | ||||
Disclosure of classes of share capital [line items] | ||||
Equity | kr 363 | kr 373 | kr 393 | |
Number of shares outstanding (in shares) | shares | 1,813,000,000 | |||
Value of shares (DKK per share) | kr / shares | kr 0.20 | |||
Number of votes | vote | 20 |
Capital structure and financi_9
Capital structure and financial items - Earnings per share, distributions to shareholders, treasury shares, share capital and other reserves - Specification of Other reserves (Details) - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of reserves within equity [line items] | |||
Beginning of the year | kr 57,593 | kr 51,839 | kr 49,815 |
Other comprehensive income for the year | (610) | 1,165 | (2,398) |
Transfer of cash flow hedge reserve to intangible assets | 326 | ||
Balance at the end of the year | 63,325 | 57,593 | 51,839 |
Transfer of cash flow hedge reserve to intangible assets | 326 | ||
Total other reserves | |||
Disclosure of reserves within equity [line items] | |||
Beginning of the year | (694) | (2,046) | 439 |
Other comprehensive income for the year | (543) | 1,352 | (2,485) |
Transfer of cash flow hedge reserve to intangible assets | 326 | ||
Balance at the end of the year | (911) | (694) | (2,046) |
Transfer of cash flow hedge reserve to intangible assets | 326 | ||
Retained earnings | |||
Disclosure of reserves within equity [line items] | |||
Beginning of the year | 57,817 | 53,406 | 48,887 |
Other comprehensive income for the year | (67) | (187) | 87 |
Balance at the end of the year | kr 63,774 | kr 57,817 | kr 53,406 |
Capital structure and financ_10
Capital structure and financial items - Financial risks - Narrative (Details) - DKK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Top of range | ||
Disclosure of detailed information about hedges [line items] | ||
Period to cover expected future cash flow | 24 months | |
USD, CNY, JPY, GBP, and CAD | Top of range | ||
Disclosure of detailed information about hedges [line items] | ||
Period to cover expected future cash flow | 13 months | |
USD, CNY, JPY, GBP, and CAD | Bottom of range | ||
Disclosure of detailed information about hedges [line items] | ||
Period to cover expected future cash flow | 5 months | |
USD | ||
Disclosure of detailed information about hedges [line items] | ||
Period to cover expected future cash flow | 10 months | 9 months |
Foreign exchange risk | ||
Disclosure of detailed information about hedges [line items] | ||
Percent increase/decrease that would impact results | 5.00% | |
Financial counterparties | Credit risk | ||
Disclosure of detailed information about hedges [line items] | ||
Maximum exposure to credit risk | kr 15,089 | kr 15,663 |
Trade receivables, Other receivables less prepayments and VAT and Other financial assets | Credit risk | ||
Disclosure of detailed information about hedges [line items] | ||
Maximum exposure to credit risk | 29,522 | 26,622 |
5% increase in all other currencies | Foreign exchange risk | ||
Disclosure of detailed information about hedges [line items] | ||
Impact on income statement | 299 | 199 |
5% increase in all other currencies | Foreign exchange risk | USD | ||
Disclosure of detailed information about hedges [line items] | ||
Impact on equity | 1,380 | 1,298 |
Impact on income statement | kr (2) | kr 135 |
Capital structure and financ_11
Capital structure and financial items - Financial risks - Financial contracts (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
USD | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Period to cover expected future cash flow | 10 months | 9 months |
CNY | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Period to cover expected future cash flow | 6 months | 7 months |
JPY | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Period to cover expected future cash flow | 12 months | 12 months |
CAD | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Period to cover expected future cash flow | 9 months | 9 months |
GBP | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Period to cover expected future cash flow | 11 months | 10 months |
Capital structure and financ_12
Capital structure and financial items - Financial risks - Key currencies (Details) - Foreign exchange risk | 12 Months Ended | ||
Dec. 31, 2020kr / ¥kr / $kr / £kr / $kr / ¥ | Dec. 31, 2019kr / $kr / £kr / ¥kr / $kr / ¥ | Dec. 31, 2018kr / $kr / £kr / ¥kr / $kr / ¥ | |
USD | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Average | kr / $ | 654 | 667 | 631 |
Year-end | kr / $ | 606 | 668 | 652 |
Year-end change (as a percent) | (9.30%) | 2.50% | 5.10% |
CNY | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Average | kr / ¥ | 95 | 97 | 95 |
Year-end | kr / ¥ | 93 | 96 | 95 |
Year-end change (as a percent) | (3.10%) | 1.10% | (0.30%) |
JPY | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Average | kr / ¥ | 6.13 | 6.12 | 5.72 |
Year-end | kr / ¥ | 5.88 | 6.11 | 5.91 |
Year-end change (as a percent) | (3.80%) | 3.40% | 7.30% |
CAD | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Average | kr / $ | 488 | 503 | 487 |
Year-end | kr / $ | 474 | 511 | 479 |
Year-end change (as a percent) | (7.20%) | 6.70% | (3.20%) |
GBP | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Average | kr / £ | 839 | 852 | 842 |
Year-end | kr / £ | 824 | 877 | 827 |
Year-end change (as a percent) | (6.00%) | 6.00% | (1.40%) |
Capital structure and financ_13
Capital structure and financial items - Financial risks - Foreign exchange sensitivity analysis (Details) - Foreign exchange risk - DKK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
USD | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Impact on operating profit | kr 1,900 | kr 1,950 |
CNY | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Impact on operating profit | 460 | 450 |
JPY | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Impact on operating profit | 200 | 150 |
CAD | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Impact on operating profit | 140 | 130 |
GBP | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Impact on operating profit | 110 | 100 |
Immediate 5% increase | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Other comprehensive income | (1,893) | (1,811) |
Income statement | 299 | 199 |
Total | (1,594) | (1,612) |
Immediate 5% increase | USD | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Income statement | (2) | 135 |
Immediate 5% decrease | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Other comprehensive income | 1,893 | 1,811 |
Income statement | (299) | (199) |
Total | kr 1,594 | kr 1,612 |
Capital structure and financ_14
Capital structure and financial items - Financial risks - Credit exposure for cash at bank and derivative financial instruments (Details) - DKK (kr) kr in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of external credit grades [line items] | ||
Credit exposure | kr 15,089 | kr 15,663 |
AA range | ||
Disclosure of external credit grades [line items] | ||
Credit exposure | 8,285 | 7,610 |
A range | ||
Disclosure of external credit grades [line items] | ||
Credit exposure | 5,786 | 7,194 |
BBB range | ||
Disclosure of external credit grades [line items] | ||
Credit exposure | 212 | 314 |
Not rated or below BBB range | ||
Disclosure of external credit grades [line items] | ||
Credit exposure | 806 | 545 |
Cash at bank | ||
Disclosure of external credit grades [line items] | ||
Credit exposure | 12,757 | 15,475 |
Cash at bank | AA range | ||
Disclosure of external credit grades [line items] | ||
Credit exposure | 7,296 | 7,471 |
Cash at bank | A range | ||
Disclosure of external credit grades [line items] | ||
Credit exposure | 4,443 | 7,145 |
Cash at bank | BBB range | ||
Disclosure of external credit grades [line items] | ||
Credit exposure | 212 | 314 |
Cash at bank | Not rated or below BBB range | ||
Disclosure of external credit grades [line items] | ||
Credit exposure | 806 | 545 |
Derivative financial instruments | ||
Disclosure of external credit grades [line items] | ||
Credit exposure | 2,332 | 188 |
Derivative financial instruments | AA range | ||
Disclosure of external credit grades [line items] | ||
Credit exposure | 989 | 139 |
Derivative financial instruments | A range | ||
Disclosure of external credit grades [line items] | ||
Credit exposure | 1,343 | 49 |
Derivative financial instruments | BBB range | ||
Disclosure of external credit grades [line items] | ||
Credit exposure | 0 | 0 |
Derivative financial instruments | Not rated or below BBB range | ||
Disclosure of external credit grades [line items] | ||
Credit exposure | kr 0 | kr 0 |
Capital structure and financ_15
Capital structure and financial items - Financial risks - Derecognised receivables (Details) - Later than one year - Receivables - DKK (kr) kr in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
US | |||
Disclosure of continuing involvement in derecognised financial assets [line items] | |||
Derecognised receivables without recourse | kr 1,817 | kr 3,672 | kr 3,587 |
JAPAN | |||
Disclosure of continuing involvement in derecognised financial assets [line items] | |||
Derecognised receivables without recourse | kr 2,351 | kr 2,149 | kr 1,937 |
Capital structure and financ_16
Capital structure and financial items - Derivative financial instruments - Derivative financial instruments (Details) kr in Millions | 12 Months Ended | |
Dec. 31, 2020DKK (kr) | Dec. 31, 2019DKK (kr) | |
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount at year-end | kr 63,390 | kr 50,455 |
Positive fair value at year-end | 2,332 | 188 |
Negative fair value at year-end | 1,365 | 734 |
Recognised in Other comprehensive income, asset | 1,802 | |
Cash flow hedges | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Recognised in Other comprehensive income, asset | 1,384 | |
Cash flow hedges | Other intangible assets [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Recognised in Other comprehensive income, asset | 418 | |
Cash flow hedges | Forward contracts | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount at year-end | 39,401 | 35,407 |
Positive fair value at year-end | 1,849 | 116 |
Negative fair value at year-end | 47 | 445 |
Cash flow hedges | Forward contracts | USD | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount at year-end | 29,110 | 25,394 |
Positive fair value at year-end | 1,658 | 81 |
Negative fair value at year-end | kr 0 | kr 315 |
Average price of hedging instrument | 640 | 654 |
Cash flow hedges | Forward contracts | CNH, JPY, GBP And CAD | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount at year-end | kr 10,291 | kr 10,013 |
Positive fair value at year-end | 191 | 35 |
Negative fair value at year-end | 47 | 130 |
Fair value hedges | Forward contracts | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount at year-end | 23,989 | 15,048 |
Positive fair value at year-end | 483 | 72 |
Negative fair value at year-end | 1,318 | 289 |
Fair value hedges | Forward contracts | USD | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount at year-end | 19,411 | 11,287 |
Positive fair value at year-end | 379 | 61 |
Negative fair value at year-end | 1,307 | 217 |
Fair value hedges | Forward contracts | CNH, CAD, EUR, GBP And JPY | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount at year-end | 4,578 | 3,761 |
Positive fair value at year-end | 104 | 11 |
Negative fair value at year-end | 11 | 72 |
Derivative financial instruments | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Recognised in the Income statement, liability | 1,318 | 289 |
Recognised in Other comprehensive income, liability | 47 | 445 |
Derivative financial instruments | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Recognised in the Income statement, asset | 483 | 72 |
Recognised in Other comprehensive income, asset | kr 1,849 | kr 116 |
Capital structure and financ_17
Capital structure and financial items - Borrowings - Contractual undiscounted cashflows (Details) - DKK (kr) kr in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Gross lease liabilities | kr 4,037 | kr 4,145 | |
Lease liabilities | 3,672 | 3,824 | |
Leases, Non-current liabilities | 2,897 | 3,009 | |
Leases, Current liabilities | 775 | 815 | |
Gross loan commitments | 5,577 | ||
Loans received | 5,577 | ||
Non-current portion of non-current loans received | 0 | ||
Current loans received and current portion of non-current loans received | 5,577 | ||
Non-current portion of non-current borrowings | 2,897 | 3,009 | |
Current borrowings | 7,459 | 1,474 | |
Total, undiscounted cash flow | 10,721 | 4,804 | |
Total, Contractual discounted cashflows included in the balance sheet at the end of the year | 10,356 | 4,483 | kr 4,503 |
Within 1 year | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Gross lease liabilities | 855 | 847 | |
Gross loan commitments | 5,577 | ||
Total, undiscounted cash flow | 7,539 | 1,506 | |
1-3 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Gross lease liabilities | 1,247 | 1,424 | |
Gross loan commitments | 0 | ||
Total, undiscounted cash flow | 1,247 | 1,424 | |
3-5 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Gross lease liabilities | 694 | 734 | |
Gross loan commitments | 0 | ||
Total, undiscounted cash flow | 694 | 734 | |
More than 5 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Gross lease liabilities | 1,241 | 1,140 | |
Gross loan commitments | 0 | ||
Total, undiscounted cash flow | 1,241 | 1,140 | |
Bank overdrafts | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Borrowings, undiscounted cash flows | 1,107 | 659 | |
Non-current portion of non-current borrowings | 0 | 0 | |
Current borrowings | 1,107 | 659 | |
Total, Contractual discounted cashflows included in the balance sheet at the end of the year | 1,107 | 659 | |
Bank overdrafts | Within 1 year | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Borrowings, undiscounted cash flows | 1,107 | 659 | |
Bank overdrafts | 1-3 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Borrowings, undiscounted cash flows | 0 | 0 | |
Bank overdrafts | 3-5 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Borrowings, undiscounted cash flows | 0 | 0 | |
Bank overdrafts | More than 5 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Borrowings, undiscounted cash flows | kr 0 | kr 0 |
Capital structure and financ_18
Capital structure and financial items - Borrowings - Reconciliation of liabilities arising from financing activities (Details) - DKK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Additions | kr 978 | kr 640 |
Disposals | 0 | (57) |
Exchange rates | (295) | 71 |
Other | (9) | 12 |
Borrowings, Beginning of the year | 4,483 | 4,503 |
Borrowings, Cash flows | 5,199 | (686) |
Borrowings, End of the year | 10,356 | 4,483 |
Lease liabilities | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Liabilities arising from financing activities at beginning of period | 3,824 | 3,988 |
Cash flows | (950) | (822) |
Additions | 978 | 640 |
Disposals | 0 | (57) |
Exchange rates | (171) | 63 |
Other | (9) | 12 |
Liabilities arising from financing activities at end of period | 3,672 | 3,824 |
Loans | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Liabilities arising from financing activities at beginning of period | 0 | |
Cash flows | 5,582 | |
Additions | 0 | |
Disposals | 0 | |
Exchange rates | (5) | |
Other | 0 | |
Liabilities arising from financing activities at end of period | 5,577 | 0 |
Bank overdrafts | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Liabilities arising from financing activities at beginning of period | 595 | 506 |
Cash flows | 100 | 81 |
Additions | 0 | 0 |
Disposals | 0 | 0 |
Exchange rates | (119) | 8 |
Other | 0 | 0 |
Liabilities arising from financing activities at end of period | 576 | 595 |
Liabilities Arising From Financing Activities | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Liabilities arising from financing activities at beginning of period | 4,419 | 4,494 |
Cash flows | 4,732 | (741) |
Additions | 978 | 640 |
Disposals | 0 | (57) |
Exchange rates | (295) | 71 |
Other | (9) | 12 |
Liabilities arising from financing activities at end of period | 9,825 | 4,419 |
Bank Overdrafts, Liabilities Not Arising From Financing Activities | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Borrowings, Beginning of the year | 64 | 9 |
Bank overdrafts, cash flows | 467 | 55 |
Borrowings, End of the year | kr 531 | kr 64 |
Capital structure and financ_19
Capital structure and financial items - Cash and cash equivalents, financial resources and free cash flow - Cash and cash equivalents and financial resources (Details) | 12 Months Ended | ||||||
Dec. 31, 2020DKK (kr) | Dec. 31, 2019DKK (kr) | Dec. 31, 2020EUR (€) | Dec. 31, 2019EUR (€) | Dec. 31, 2018DKK (kr) | Dec. 31, 2018EUR (€) | Dec. 31, 2017DKK (kr) | |
Cash and cash equivalents | |||||||
Cash at bank | kr 12,757,000,000 | kr 15,475,000,000 | kr 15,638,000,000 | ||||
Current debt (bank overdrafts) | (531,000,000) | (64,000,000) | (9,000,000) | ||||
Cash and cash equivalents | 12,226,000,000 | 15,411,000,000 | 15,629,000,000 | kr 17,158,000,000 | |||
Financial reserves | |||||||
Cash and cash equivalents | 12,226,000,000 | 15,411,000,000 | 15,629,000,000 | kr 17,158,000,000 | |||
Undrawn committed credit facility | 11,531,000,000 | 11,578,000,000 | 11,574,000,000 | ||||
Undrawn bridge facility | 5,577,000,000 | 0 | 0 | ||||
Borrowings | (576,000,000) | (595,000,000) | (506,000,000) | ||||
Financial reserves | 28,758,000,000 | 26,394,000,000 | kr 26,697,000,000 | ||||
Disclosure of detailed information about borrowings [line items] | |||||||
Bank loan classified as financing activities | 576,000,000 | 595,000,000 | |||||
Bank loan classified as cash and cash equivalents | 531,000,000 | kr 64,000,000 | |||||
Bridge Facility | € | € 1,500,000,000 | ||||||
Drawn Bridge Facility | 5,577,000,000 | 750,000,000 | |||||
Undrawn Bridge Facility | kr 5,577,000,000 | 750,000,000 | |||||
EUR Undrawn committed credit facility | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Maximum borrowing capacity | € | € 1,550,000,000 | € 1,550,000,000 | € 1,550,000,000 |
Capital structure and financ_20
Capital structure and financial items - Cash and cash equivalents, financial resources and free cash flow - Free cash flow (Details) - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Capital, Reserves And Other Equity Interest And Financial Instruments [Abstract] | |||
Net cash generated from operating activities | kr 51,951 | kr 46,782 | kr 44,616 |
Net cash used in investing activities | (22,436) | (11,509) | (12,080) |
Repayment on lease liabilities | (950) | (822) | 0 |
Free cash flow | kr 28,565 | kr 34,451 | kr 32,536 |
Capital structure and financ_21
Capital structure and financial items - Cash and cash equivalents, financial resources and free cash flow- Narrative (Details) - DKK (kr) kr in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Share Capital, Reserves And Other Equity Interest And Financial Instruments [Abstract] | ||
Restricted cash and cash equivalents | kr 653 | kr 509 |
Capital structure and financ_22
Capital structure and financial items - Change in working capital - Change in working capital (Details) - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Capital, Reserves And Other Equity Interest And Financial Instruments [Abstract] | |||
Inventories | kr (895) | kr (1,305) | kr (963) |
Trade receivables | (2,822) | (2,126) | (2,621) |
Other receivables and prepayments | (419) | (1,190) | (662) |
Trade payables | (641) | (398) | 1,146 |
Other liabilities | 1,274 | 1,202 | (348) |
Adjustment for payables related to non-current assets | 879 | 295 | 84 |
Adjustment related to divestment of Group companies | 0 | (42) | 0 |
Change in working capital including exchange rate adjustments | (2,624) | (3,564) | (3,364) |
Exchange rate adjustments | (1,729) | 176 | (6) |
Cash flow change in working capital | kr (4,353) | kr (3,388) | kr (3,370) |
Capital structure and financ_23
Capital structure and financial items - Other non-cash items - Other non-cash items (Details) - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reversals of non-cash income statement items | |||
Interest income and interest expenses, net (note 4.9) | kr (53) | kr (155) | kr (34) |
Capital gains/(loss) on investments, net etc (note 4.9) | 195 | 145 | (163) |
Result of associated company (note 4.9) | (149) | 137 | (12) |
Share-based payment costs (note 5.1) | 823 | 363 | 414 |
Income from the divestment of Group companies | 0 | (68) | (122) |
Adjustment in non-cash items related to divestment of group companies | 0 | 162 | 0 |
Increase/(decrease) in provisions (note 3.6) and retirement benefit obligations (note 3.5) | 3,605 | 6,071 | 5,503 |
Other | 3,322 | 67 | 444 |
Total other non-cash items | kr 7,849 | kr 7,032 | kr 6,098 |
Capital structure and financ_24
Capital structure and financial items - Financial assets and liabilities - Financial assets by category (Details) - DKK (kr) kr in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of financial assets [line items] | ||
Financial assets | kr 44,611 | kr 42,285 |
Financial assets at fair value through the income statement | ||
Disclosure of financial assets [line items] | ||
Financial assets | 3,098 | 1,158 |
Financial assets at fair value through the income statement | Other financial assets | ||
Disclosure of financial assets [line items] | ||
Financial assets | 766 | 970 |
Financial assets at fair value through the income statement | Derivative financial instruments | ||
Disclosure of financial assets [line items] | ||
Financial assets | 2,332 | 188 |
Financial assets at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 25,422 | 28,418 |
Non-current financial assets | 280 | 327 |
Financial assets at amortised cost | Other financial assets | ||
Disclosure of financial assets [line items] | ||
Financial assets | 300 | 364 |
Financial assets at amortised cost | Trade receivables | ||
Disclosure of financial assets [line items] | ||
Financial assets | 11,643 | 12,203 |
Financial assets at amortised cost | Other receivables and prepayments (current and non-current) | ||
Disclosure of financial assets [line items] | ||
Financial assets | 4,835 | 4,275 |
Financial assets at amortised cost | Other receivables - less prepayments and VAT receivables | ||
Disclosure of financial assets [line items] | ||
Financial assets | (4,113) | (3,899) |
Financial assets at amortised cost | Cash at bank | ||
Disclosure of financial assets [line items] | ||
Financial assets | 12,757 | 15,475 |
Financial assets at amortised cost | Other Financial Assets, Other Receivables, Non-Current And Prepayments | ||
Disclosure of financial assets [line items] | ||
Financial assets | 674 | 841 |
Financial assets at fair value through OCI | ||
Disclosure of financial assets [line items] | ||
Financial assets | 16,091 | 12,709 |
Financial assets at fair value through OCI | Trade receivables | ||
Disclosure of financial assets [line items] | ||
Financial assets | kr 16,091 | kr 12,709 |
Capital structure and financ_25
Capital structure and financial items - Financial assets and liabilities - Financial liabilities by category (Details) - DKK (kr) kr in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of financial liabilities [line items] | ||
Financial liabilities | kr 33,845 | kr 26,182 |
Financial liabilities measured at fair value through the income statement | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 1,365 | 734 |
Financial liabilities measured at fair value through the income statement | Derivative financial instruments | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 1,365 | 734 |
Financial liabilities measured at amortised cost | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 32,480 | 25,448 |
Financial liabilities measured at amortised cost | Borrowings (non-current) | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 2,897 | 3,009 |
Financial liabilities measured at amortised cost | Borrowings (current) | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 7,459 | 1,474 |
Financial liabilities measured at amortised cost | Trade payables | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 5,717 | 6,358 |
Financial liabilities measured at amortised cost | Other liabilities | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 17,005 | 15,085 |
Financial liabilities measured at amortised cost | Other liabilities- less VAT and duties payable | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | kr (598) | kr (478) |
Capital structure and financ_26
Capital structure and financial items - Financial assets and liabilities - Fair value measurement hierarchy (Details) - DKK (kr) kr in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about financial instruments [line items] | ||
Total financial assets at fair value | kr 19,189 | kr 13,867 |
Total financial liabilities at fair value | 1,365 | 734 |
Active market data | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial assets at fair value | 634 | 846 |
Total financial liabilities at fair value | 0 | 0 |
Directly or indirectly observable market data | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial assets at fair value | 2,332 | 188 |
Total financial liabilities at fair value | 1,365 | 734 |
Not based on observable market data | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial assets at fair value | 16,223 | 12,833 |
Total financial liabilities at fair value | kr 0 | kr 0 |
Capital structure and financ_27
Capital structure and financial items - Financial income and expenses - Financial income (Details) - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Capital, Reserves And Other Equity Interest And Financial Instruments [Abstract] | |||
Interest income | kr 337 | kr 65 | kr 51 |
Foreign exchange gain (net) | 1,142 | 0 | 0 |
Financial gain from forward contracts (net) | 0 | 0 | 1,656 |
Financial gain from currency options (net) | 0 | 0 | 152 |
Capital gain on investments, etc. | 0 | 0 | 251 |
Result of associated company | 149 | 0 | 12 |
Total financial income | kr 1,628 | kr 65 | kr 2,122 |
Capital structure and financ_28
Capital structure and financial items - Financial income and expenses - Financial expenses (Details) - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Capital, Reserves And Other Equity Interest And Financial Instruments [Abstract] | |||
Interest expenses | kr 390 | kr 220 | kr 85 |
Foreign exchange loss (net) | 0 | 539 | 1,510 |
Financial loss from forward contracts (net) | 1,889 | 2,673 | 0 |
Capital loss on investments, net | 195 | 145 | 88 |
Result of associated companies | 0 | 137 | 0 |
Other finance cost | 150 | 281 | 72 |
Total financial expenses | kr 2,624 | kr 3,995 | kr 1,755 |
Capital structure and financ_29
Capital structure and financial items - Financial income and expenses - Financial impact from forward contracts and currency options, specified (Details) - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change in value of forward elements of forward contracts [abstract] | |||
Income/(loss) transferred from other comprehensive income | kr (329) | kr (1,677) | kr 1,841 |
Value adjustment of transferred contracts | 79 | (1,609) | (1,299) |
Unrealised fair value adjustments of forward contracts | (835) | (217) | (143) |
Realised foreign exchange gain/(loss) on forward contracts | (804) | 830 | 1,257 |
Financial income/(expense) from forward contracts | (1,889) | (2,673) | 1,656 |
Change In Value Of Currency Options [Abstract] | |||
Realised income/(loss) transferred from other comprehensive income | 0 | 0 | 186 |
Value adjustment of transferred options | 0 | 0 | (3) |
Foreign exchange gain/(loss) on currency options | 0 | 0 | (31) |
Financial income/(expense) from currency options | kr 0 | kr 0 | kr 152 |
Other disclosures - Share-based
Other disclosures - Share-based payment schemes - Share-based payment Expensed in the Income statement (Details) - DKK (kr) kr in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Expensed in the Income statement | kr 823 | kr 363 | kr 414 | |
Restricted stock units to employees | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Expensed in the Income statement | 189 | 48 | 204 | |
Long-term share-based incentive programme (Management Board) | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Expensed in the Income statement | 162 | 86 | 48 | |
Amortisation period | 4 years | |||
Long-term share-based incentive programme (management group below Senior Management Board) | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Expensed in the Income statement | 436 | 195 | 145 | |
Shares allocated to individual employees | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Expensed in the Income statement | kr 36 | kr 34 | kr 17 |
Other disclosures - Share-bas_2
Other disclosures - Share-based payment schemes - Restricted stock units to employees (Details) - Restricted stock units to employees kr in Millions | Aug. 01, 2019DKK (kr)shares |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Number of awards offered, each (in shares) | 75 |
Conversion (in shares) | 1 |
Cost of programme amortised over the vesting period | kr | kr 660 |
Other disclosures - Share-bas_3
Other disclosures - Share-based payment schemes - Long-term share-based incentive programme (Details) | 1 Months Ended | 12 Months Ended | ||||
Feb. 19, 2020 | Feb. 28, 2019kr / shares | Dec. 31, 2020DKK (kr)shares | Dec. 31, 2019DKK (kr)shares | Dec. 31, 2018DKK (kr)shares | Dec. 31, 2017shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Allocated in the year | shares | 1,425,520 | 4,111,433 | 1,684,982 | |||
Expensed in the Income statement | kr 823,000,000 | kr 363,000,000 | kr 414,000,000 | |||
Outstanding at the end of the year (in shares) | shares | 8,676,718 | 6,879,198 | 5,584,019 | 4,933,882 | ||
Long-term share-based incentive programme (Management Board) | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Expensed in the Income statement | kr 162,000,000 | kr 86,000,000 | kr 48,000,000 | |||
Long-term share-based incentive programme (Management Board) | 2019 Shares allocated to pool | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Allocated in the year | shares | 370,038 | 508,398 | ||||
Total market value at launch (DKK million) | kr 152,000,000 | kr 152,000,000 | ||||
Percent of increase (decrease) in share allocation | 30.00% | |||||
Vesting period | 3 years | 3 years | ||||
Outstanding at the end of the year (in shares) | shares | 1,326,080 | 1,228,714 | ||||
Percent of increase (decrease) in share allocation | 30.00% | |||||
Long-term share-based incentive programme (Management Board) | 2016 Shares allocated to pool | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Allocated in the year | shares | 331,587 | |||||
Total market value at launch (DKK million) | kr 76,000,000 | |||||
Long-term share-based incentive programme (Management Board) | Novo Nordisk B Shares | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Value per share at launch (DKK per share) | kr / shares | kr 435 | |||||
Long-term share-based incentive programme (Management Board) | Executive Management | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Fixed base salary plus pension contribution period | 336 days | |||||
Percent of pool allocation | 47.00% | |||||
Long-term share-based incentive programme (Management Board) | Senior Management Board | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Percent of pool allocation | 53.00% | |||||
Long-term share-based incentive programme (Management Board) | Senior Vice Presidents | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Fixed base salary plus pension contribution period | 249 days | |||||
Long-term share-based incentive programme (Management Board) | Chief Executive Officer | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Fixed base salary plus pension contribution period | 447 days | |||||
Long-term share-based incentive programme (management group below Senior Management Board) | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Expensed in the Income statement | kr 436,000,000 | kr 195,000,000 | kr 145,000,000 | |||
Long-term share-based incentive programme (management group below Senior Management Board) | 2019 Shares allocated to pool | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Allocated in the year | shares | 1,011,692 | 1,300,333 | ||||
Total market value at launch (DKK million) | kr 416,000,000 | kr 387,000,000 | ||||
Vesting period | 3 years | 3 years | ||||
Outstanding at the end of the year (in shares) | shares | 3,173,185 | 2,665,226 | ||||
Long-term share-based incentive programme (management group below Senior Management Board) | 2016 Shares allocated to pool | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Outstanding at the end of the year (in shares) | shares | 635,516 | |||||
Long-Term Share-Based Incentive Programme - Below Management Board [Member] | 2019 Shares allocated to pool | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Percent of increase (decrease) in share allocation | 30.00% | |||||
Percent of increase (decrease) in share allocation | 30.00% | |||||
Vesting Period 2019 - 2022 | Long-term share-based incentive programme (Management Board) | 2019 Shares allocated to pool | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Expensed in the Income statement | kr 38,000,000 | |||||
Vesting Period 2019 - 2022 | Long-term share-based incentive programme (management group below Senior Management Board) | 2019 Shares allocated to pool | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Expensed in the Income statement | 104,000,000 | |||||
Amortisation Period 2016 - 2019 | Long-term share-based incentive programme (management group below Senior Management Board) | 2016 Shares allocated to pool | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Total market value at launch (DKK million) | kr 162,000,000 |
Other disclosures - Share-bas_4
Other disclosures - Share-based payment schemes - General Terms and Conditions of Launched Programmes (Details) | 12 Months Ended | |||
Dec. 31, 2020DKK (kr)shareskr / shares | Dec. 31, 2019DKK (kr)shareskr / shares | Dec. 31, 2018DKK (kr)shareskr / shares | Aug. 01, 2019DKK (kr) | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of shares awarded in the year (in shares) | 1,425,520 | 4,111,433 | 1,684,982 | |
Restricted stock units to employees | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Total market value at launch (DKK million) | kr | kr 660,000,000 | |||
2020 Shares allocated to pool | Restricted stock units to employees | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of shares awarded in the year (in shares) | 0 | |||
2020 Shares allocated to pool | Shares for Management Board | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of shares awarded in the year (in shares) | 370,038 | |||
Value per share at launch (DKK) | kr / shares | kr 411 | |||
Total market value at launch (DKK million) | kr | kr 152,000,000 | |||
Vesting period | 3 years | |||
2020 Shares allocated to pool | Shares for management group below Management Board | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of shares awarded in the year (in shares) | 1,011,692 | |||
Value per share at launch (DKK) | kr / shares | kr 411 | |||
Total market value at launch (DKK million) | kr | kr 416,000,000 | |||
Vesting period | 3 years | |||
2020 Shares allocated to pool | Shares allocated to individual employees | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of shares awarded in the year (in shares) | 43,790 | |||
Value per share at launch (DKK) | kr / shares | kr 391 | |||
Total market value at launch (DKK million) | kr | kr 17,000,000 | |||
Vesting period | 3 years | |||
2019 Shares allocated to pool | Restricted stock units to employees | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of shares awarded in the year (in shares) | 2,148,580 | |||
Value per share at launch (DKK) | kr / shares | kr 307 | |||
Total market value at launch (DKK million) | kr | kr 660,000,000 | |||
Vesting period | 3 years 6 months | |||
2019 Shares allocated to pool | Shares for Management Board | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of shares awarded in the year (in shares) | 370,038 | 508,398 | ||
Value per share at launch (DKK) | kr / shares | kr 298 | |||
Total market value at launch (DKK million) | kr | kr 152,000,000 | kr 152,000,000 | ||
Vesting period | 3 years | 3 years | ||
2019 Shares allocated to pool | Shares for management group below Management Board | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of shares awarded in the year (in shares) | 1,011,692 | 1,300,333 | ||
Value per share at launch (DKK) | kr / shares | kr 298 | |||
Total market value at launch (DKK million) | kr | kr 416,000,000 | kr 387,000,000 | ||
Vesting period | 3 years | 3 years | ||
2019 Shares allocated to pool | Shares allocated to individual employees | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of shares awarded in the year (in shares) | 154,122 | |||
Value per share at launch (DKK) | kr / shares | kr 311 | |||
Total market value at launch (DKK million) | kr | kr 48,000,000 | |||
Vesting period | 3 years | |||
2018 Shares allocated to pool | Restricted stock units to employees | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of shares awarded in the year (in shares) | 0 | |||
2018 Shares allocated to pool | Shares for Management Board | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of shares awarded in the year (in shares) | 411,090 | |||
Value per share at launch (DKK) | kr / shares | kr 280 | |||
Total market value at launch (DKK million) | kr | kr 115,000,000 | |||
Vesting period | 3 years | |||
2018 Shares allocated to pool | Shares for management group below Management Board | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of shares awarded in the year (in shares) | 1,114,455 | |||
Value per share at launch (DKK) | kr / shares | kr 280 | |||
Total market value at launch (DKK million) | kr | kr 312,000,000 | |||
Vesting period | 3 years | |||
2018 Shares allocated to pool | Shares allocated to individual employees | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of shares awarded in the year (in shares) | 159,437 | |||
Value per share at launch (DKK) | kr / shares | kr 278 | |||
Total market value at launch (DKK million) | kr | kr 44,000,000 | |||
Vesting period | 3 years |
Other disclosures - Share-bas_5
Other disclosures - Share-based payment schemes - Outstanding Restricted Stock Units (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Outstanding at the beginning of the year (in shares) | 6,879,198 | 5,584,019 | 4,933,882 |
Released allocated shares (per share) | (361,844) | (2,553,658) | (825,537) |
Cancelled allocated shares (per share) | (129,713) | (262,596) | (209,308) |
Allocated in the year | 1,425,520 | 4,111,433 | 1,684,982 |
Performance adjustment | 863,557 | ||
Outstanding at the end of the year (in shares) | 8,676,718 | 6,879,198 | 5,584,019 |
Restricted stock units to employees | 2020 Shares allocated to pool | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Outstanding at the beginning of the year (in shares) | 2,148,580 | ||
Released allocated shares (per share) | (29,250) | ||
Cancelled allocated shares (per share) | 0 | ||
Allocated in the year | 0 | ||
Outstanding at the end of the year (in shares) | 2,119,330 | 2,148,580 | |
Restricted stock units to employees | 2019 Shares allocated to pool | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Outstanding at the beginning of the year (in shares) | 2,148,580 | 1,521,031 | |
Released allocated shares (per share) | (1,431,192) | ||
Cancelled allocated shares (per share) | (89,839) | ||
Allocated in the year | 2,148,580 | ||
Outstanding at the end of the year (in shares) | 2,148,580 | 1,521,031 | |
Restricted stock units to employees | 2018 Shares allocated to pool | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Outstanding at the beginning of the year (in shares) | 1,521,031 | 1,556,211 | |
Released allocated shares (per share) | (35,180) | ||
Cancelled allocated shares (per share) | 0 | ||
Allocated in the year | 0 | ||
Outstanding at the end of the year (in shares) | 1,521,031 | ||
Shares for Management Board | 2020 Shares allocated to pool | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Outstanding at the beginning of the year (in shares) | 1,326,080 | ||
Released allocated shares (per share) | (95,082) | ||
Cancelled allocated shares (per share) | (12,700) | ||
Allocated in the year | 370,038 | ||
Performance adjustment | 239,567 | ||
Outstanding at the end of the year (in shares) | 1,827,903 | 1,326,080 | |
Shares for Management Board | 2019 Shares allocated to pool | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Outstanding at the beginning of the year (in shares) | 1,326,080 | 1,228,714 | |
Released allocated shares (per share) | (378,421) | ||
Cancelled allocated shares (per share) | (32,611) | ||
Allocated in the year | 370,038 | 508,398 | |
Outstanding at the end of the year (in shares) | 1,326,080 | 1,228,714 | |
Shares for Management Board | 2018 Shares allocated to pool | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Outstanding at the beginning of the year (in shares) | 1,228,714 | 1,115,494 | |
Released allocated shares (per share) | (284,173) | ||
Cancelled allocated shares (per share) | (13,697) | ||
Allocated in the year | 411,090 | ||
Outstanding at the end of the year (in shares) | 1,228,714 | ||
Shares for management group below Management Board | 2020 Shares allocated to pool | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Outstanding at the beginning of the year (in shares) | 3,173,185 | ||
Released allocated shares (per share) | (171,162) | ||
Cancelled allocated shares (per share) | (95,038) | ||
Allocated in the year | 1,011,692 | ||
Performance adjustment | 623,990 | ||
Outstanding at the end of the year (in shares) | 4,542,667 | 3,173,185 | |
Shares for management group below Management Board | 2019 Shares allocated to pool | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Outstanding at the beginning of the year (in shares) | 3,173,185 | 2,665,226 | |
Released allocated shares (per share) | (662,172) | ||
Cancelled allocated shares (per share) | (130,202) | ||
Allocated in the year | 1,011,692 | 1,300,333 | |
Outstanding at the end of the year (in shares) | 3,173,185 | 2,665,226 | |
Shares for management group below Management Board | 2018 Shares allocated to pool | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Outstanding at the beginning of the year (in shares) | 2,665,226 | 2,226,683 | |
Released allocated shares (per share) | (480,301) | ||
Cancelled allocated shares (per share) | (195,611) | ||
Allocated in the year | 1,114,455 | ||
Outstanding at the end of the year (in shares) | 2,665,226 | ||
Shares allocated to individual employees | 2020 Shares allocated to pool | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Outstanding at the beginning of the year (in shares) | 231,353 | ||
Released allocated shares (per share) | (66,350) | ||
Cancelled allocated shares (per share) | (21,975) | ||
Allocated in the year | 43,790 | ||
Outstanding at the end of the year (in shares) | 186,818 | 231,353 | |
Shares allocated to individual employees | 2019 Shares allocated to pool | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Outstanding at the beginning of the year (in shares) | 231,353 | 169,048 | |
Released allocated shares (per share) | (81,873) | ||
Cancelled allocated shares (per share) | (9,944) | ||
Allocated in the year | 154,122 | ||
Outstanding at the end of the year (in shares) | 231,353 | 169,048 | |
Shares allocated to individual employees | 2018 Shares allocated to pool | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Outstanding at the beginning of the year (in shares) | 169,048 | 35,494 | |
Released allocated shares (per share) | (25,883) | ||
Cancelled allocated shares (per share) | 0 | ||
Allocated in the year | 159,437 | ||
Outstanding at the end of the year (in shares) | 169,048 |
Other disclosures - Commitments
Other disclosures - Commitments - Contractual Obligations and Recognised Non-Current Debt (Details) - DKK (kr) kr in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of maturity analysis of operating lease payments [line items] | ||
Retirement benefit obligations | kr 1,399 | kr 1,334 |
Leases (note 4.4) | 4,037 | 4,145 |
Total obligations recognised in the balance sheet | 5,436 | 5,479 |
Leases | 764 | 932 |
Research and development obligations | 7,235 | 7,380 |
Research and development - potential milestone payments | 4,083 | 4,735 |
Commercial product launch - potential milestone payments | 6,105 | 3,468 |
Purchase obligations relating to invest- ments in property, plant and equipment | 339 | 172 |
Other purchase obligations | 12,063 | 10,480 |
Total obligations not recognised in the balance sheet | 30,589 | 27,167 |
Total contractual obligations | 36,025 | 32,646 |
Within 1 year | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Retirement benefit obligations | 23 | 13 |
Leases (note 4.4) | 855 | 847 |
Total obligations recognised in the balance sheet | 878 | 860 |
Leases | 152 | 128 |
Research and development obligations | 2,733 | 2,600 |
Research and development - potential milestone payments | 205 | 300 |
Commercial product launch - potential milestone payments | 0 | 0 |
Purchase obligations relating to invest- ments in property, plant and equipment | 339 | 172 |
Other purchase obligations | 7,528 | 5,695 |
Total obligations not recognised in the balance sheet | 10,957 | 8,895 |
Total contractual obligations | 11,835 | 9,755 |
1-3 years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Retirement benefit obligations | 46 | 26 |
Leases (note 4.4) | 1,247 | 1,424 |
Total obligations recognised in the balance sheet | 1,293 | 1,450 |
Leases | 198 | 229 |
Research and development obligations | 3,460 | 3,258 |
Research and development - potential milestone payments | 918 | 1,023 |
Commercial product launch - potential milestone payments | 0 | 0 |
Purchase obligations relating to invest- ments in property, plant and equipment | 0 | 0 |
Other purchase obligations | 3,014 | 2,989 |
Total obligations not recognised in the balance sheet | 7,590 | 7,499 |
Total contractual obligations | 8,883 | 8,949 |
3-5 years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Retirement benefit obligations | 44 | 25 |
Leases (note 4.4) | 694 | 734 |
Total obligations recognised in the balance sheet | 738 | 759 |
Leases | 134 | 199 |
Research and development obligations | 905 | 1,493 |
Research and development - potential milestone payments | 507 | 1,009 |
Commercial product launch - potential milestone payments | 212 | 0 |
Purchase obligations relating to invest- ments in property, plant and equipment | 0 | 0 |
Other purchase obligations | 773 | 1,175 |
Total obligations not recognised in the balance sheet | 2,531 | 3,876 |
Total contractual obligations | 3,269 | 4,635 |
More than 5 years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Retirement benefit obligations | 1,286 | 1,270 |
Leases (note 4.4) | 1,241 | 1,140 |
Total obligations recognised in the balance sheet | 2,527 | 2,410 |
Leases | 280 | 376 |
Research and development obligations | 137 | 29 |
Research and development - potential milestone payments | 2,453 | 2,403 |
Commercial product launch - potential milestone payments | 5,893 | 3,468 |
Purchase obligations relating to invest- ments in property, plant and equipment | 0 | 0 |
Other purchase obligations | 748 | 621 |
Total obligations not recognised in the balance sheet | 9,511 | 6,897 |
Total contractual obligations | kr 12,038 | kr 9,307 |
Other disclosures - Commitmen_2
Other disclosures - Commitments - Narrative (Details) - DKK (kr) kr in Millions | 12 Months Ended | 60 Months Ended | ||||||
Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2024 | |
Disclosure of geographical areas [line items] | ||||||||
Other guarantees | kr 1,117 | kr 906 | ||||||
Maximum allowable annual donation | 91 | |||||||
One-off Contribution | 50 | |||||||
Donations amounts | kr 138 | kr 86 | kr 85 | |||||
Forecast | ||||||||
Disclosure of geographical areas [line items] | ||||||||
Annual donation as a percent of net insulin sales | 0.085% | |||||||
Maximum allowable annual donation | kr 95 | kr 94 | kr 93 | kr 92 | ||||
Annual donation as a percent of taxable income | 15.00% | |||||||
Annual donation as a percent of net insulin sales | 0.085% | |||||||
Outside of Denmark | ||||||||
Disclosure of geographical areas [line items] | ||||||||
Commitments related to leases (as a percent) | 75.00% |
Other disclosures - Related par
Other disclosures - Related party transactions - Material Transactions with Related Parties (Details) - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Parent | Novo Holdings A/S | |||
Disclosure of transactions between related parties [line items] | |||
Purchase of Novo Nordisk B shares | kr 5,963 | kr 4,894 | kr 4,207 |
Sale of NNIT B shares | 0 | 0 | (368) |
Dividend payment to Novo Holdings A/S | 5,767 | 5,580 | 5,496 |
Associates | NNIT Group | |||
Disclosure of transactions between related parties [line items] | |||
Services provided by related party | 775 | 941 | 1,052 |
Dividend payment from NNIT | (18) | (20) | (19) |
Related parties | Novozymes Group | |||
Disclosure of transactions between related parties [line items] | |||
Services provided by related party | 72 | 103 | 121 |
Services provided by Novo Nordisk | (113) | (132) | (115) |
Related parties | CS Solar Fund XIV | |||
Disclosure of transactions between related parties [line items] | |||
Purchase of Novo Nordisk B shares | 0 | 97 | 0 |
Liability for capital commitment1 | 0 | 389 | 0 |
Distribution by CS Solar Fund XIV | 0 | (385) | 0 |
Liability For Capital Commitment, Related Party Transactions, Payment | 392 | ||
Liability for capital commitment1 | kr 0 | kr 389 | kr 0 |
Other disclosures - Related p_2
Other disclosures - Related party transactions - Narrative (Details) - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share repurchase programme of Novo Nordisk B shares | |||
Disclosure of subsidiaries [line items] | |||
Share repurchase programme, authorized amount | kr 17,000 | kr 900 | |
Parent | Novo Holdings A/S | |||
Disclosure of subsidiaries [line items] | |||
Share capital owned (as a percent) | 28.10% | ||
Number of votes (as a percent) | 76.50% | ||
Purchase of Novo Nordisk B shares | kr 5,963 | kr 4,894 | kr 4,207 |
Parent | Novo Holdings A/S | B shares | |||
Disclosure of subsidiaries [line items] | |||
Number of shares acquired (in shares) | 14,025,000 |
Other disclosures - Fee to stat
Other disclosures - Fee to statutory auditors - Fee to statutory auditors (Details) - DKK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Additional information [abstract] | |||
Statutory audit | kr 26 | kr 26 | kr 25 |
Audit-related services | 3 | 4 | 3 |
Tax advisory services | 9 | 11 | 11 |
Other services | 4 | 4 | 3 |
Total fee to statutory auditors | 42 | 45 | 42 |
Fees for other services than statutory audit | 16 | 19 | 17 |
Other services | kr 9 | kr 12 | kr 9 |
Other disclosures - Companies i
Other disclosures - Companies in the Novo Nordisk Group (Details) | 12 Months Ended |
Dec. 31, 2020 | |
North America | Novo Nordisk Canada Inc., Canada | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
North America | Novo Nordisk Inc., United States | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
North America | Novo Nordisk North America Operations A/S, Denmark | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
North America | Novo Nordisk Pharmaceutical Industries LP, United States | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
North America | Novo Nordisk Pharma, Inc., United States | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
North America | Novo Nordisk Research Center Indianapolis, Inc., United States | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
North America | Novo Nordisk Research Center Seattle, Inc., United States | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
North America | Novo Nordisk US Bio Production, Inc., United States | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
North America | Novo Nordisk US Commercial Holdings, Inc., United States | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
North America | Novo Nordisk US Holdings Inc., United States | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
North America | Corvidia Therapeutics, Inc., United States | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
North America | Emisphere Technologies, Inc., United States | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
International Operations | Novo Nordisk Pharmaceuticals A/S, Denmark | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
International Operations | Novo Nordisk Pharma Operations A/S, Denmark | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
International Operations | Novo Nordisk Region AAMEO and LATAM A/S, Denmark | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
International Operations | Novo Nordisk Region Europe A/S, Denmark | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Japan and Korea | Novo Nordisk Region Japan & Korea A/S, Denmark | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Europe | Novo Nordisk Pharma GmbH, Austria | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Europe | S.A. Novo Nordisk Pharma N.V., Belgium | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Europe | Novo Nordisk Pharma d.o.o., Bosnia and Herzegovina | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Europe | Novo Nordisk Pharma EAD, Bulgaria | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Europe | Novo Nordisk Hrvatska d.o.o., Croatia | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Europe | Novo Nordisk s.r.o., Czech Republic | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Europe | Novo Nordisk Denmark A/S, Denmark | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Europe | Novo Nordisk Pharmatech A/S, Denmark | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Europe | Novo Nordisk Egypt LLC, Egypt | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Europe | Novo Nordisk Farma OY, Finland | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Europe | Novo Nordisk, France | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Europe | Novo Nordisk Production SAS, France | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Europe | Novo Nordisk Pharma GmbH, Germany | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Europe | Novo Nordisk Hellas Epe., Greece | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Europe | Novo Nordisk Hungária Kft., Hungary | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Europe | Novo Nordisk Biopharm Limited, Ireland | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Europe | Novo Nordisk Limited, Ireland | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Europe | Novo Nordisk Ltd, Israel | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Europe | Novo Nordisk S.P.A., Italy | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Europe | UAB Novo Nordisk Pharma, Lithuania | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Europe | Novo Nordisk Farma dooel, North Macedonia | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Europe | Novo Nordisk B.V., Netherlands | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Europe | Novo Nordisk Norway AS, Norway | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Europe | Novo Nordisk Pharmaceutical Services Sp. z o.o., Poland | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Europe | Novo Nordisk Pharma Sp.z.o.o., Poland | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Europe | Novo Nordisk Comércio Produtos Farmacêuticos Lda., Portugal | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Europe | Novo Nordisk Farma S.R.L., Romania | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Europe | Novo Nordisk Pharma d.o.o. Belgrade (Serbia), Serbia | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Europe | Novo Nordisk Slovakia s.r.o., Slovakia | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Europe | Novo Nordisk, d.o.o., Slovenia | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Europe | Novo Nordisk Pharma S.A., Spain | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Europe | Novo Nordisk Scandinavia AB, Sweden | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Europe | Novo Nordisk Health Care AG, Switzerland | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Europe | Novo Nordisk Pharma AG, Switzerland | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Europe | Novo Nordisk Holding Limited, United Kingdom | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Europe | Novo Nordisk Limited, United Kingdom | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Europe | Ziylo Limited, United Kingdom | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Region Africa, Asia, Middle East And Oceania | Aldaph SpA, Algeria | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Region Africa, Asia, Middle East And Oceania | Novo Nordisk Kazakhstan LLP, Kazakhstan | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Region Africa, Asia, Middle East And Oceania | Novo Nordisk Kenya Ltd., Kenya | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Region Africa, Asia, Middle East And Oceania | Novo Nordisk Pharma SARL, Lebanon | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Region Africa, Asia, Middle East And Oceania | Novo Nordisk Pharma SAS, Morocco | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Region Africa, Asia, Middle East And Oceania | Novo Nordisk Pharma Limited, Nigeria | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Region Africa, Asia, Middle East And Oceania | Novo Nordisk Limited Liability Company, Russia | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Region Africa, Asia, Middle East And Oceania | Novo Nordisk Production Support LLC, Russia | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Region Africa, Asia, Middle East And Oceania | Novo Nordisk (Pty) Limited, South Africa | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Region Africa, Asia, Middle East And Oceania | Novo Nordisk Tunisie SARL, Tunisia | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Region Africa, Asia, Middle East And Oceania | Novo Nordisk Saglik Ürünleri Tic. Ltd. Sti., Turkey | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Region Africa, Asia, Middle East And Oceania | Novo Nordisk Ukraine, LLC, Ukraine | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Region Africa, Asia, Middle East And Oceania | Novo Nordisk Pharma Gulf FZ-LLC, United Arab Emirates | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
China | Novo Nordisk (China) Pharmaceuticals Co., Ltd., China | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
China | Novo Nordisk Region China A/S, Denmark | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
China | Beijing Novo Nordisk Pharmaceuticals Science & Technology Co., Ltd., China | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
China | Novo Nordisk Hong Kong Limited, Hong Kong | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
China | Novo Nordisk Pharma (Taiwan) Ltd., Taiwan | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Rest of World | Novo Nordisk Pharma Argentina S.A., Argentina | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Rest of World | Novo Nordisk Pharmaceuticals Pty. Ltd., Australia | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Rest of World | Novo Nordisk Pharma (Private) Limited, Bangladesh | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Rest of World | Novo Nordisk Produção Farmacêutica do Brasil Ltda., Brazil | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Rest of World | Novo Nordisk Farmacêutica do Brasil Ltda., Brazil | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Rest of World | Novo Nordisk Farmacéutica Limitada, Chile | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Rest of World | Novo Nordisk Colombia SAS, Colombia | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Rest of World | Novo Nordisk India Private Limited, India | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Rest of World | Novo Nordisk Service Centre (India) Pvt. Ltd., India | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Rest of World | PT. Novo Nordisk Indonesia, Indonesia | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Rest of World | Novo Nordisk Pars, Iran | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Rest of World | Novo Nordisk Pharma Ltd., Japan | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Rest of World | Novo Nordisk Pharma (Malaysia) Sdn Bhd, Malaysia | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Rest of World | Novo Nordisk Pharma Operations (Business Area) Sdn Bhd, Malaysia | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Rest of World | Novo Nordisk Mexico S.A. de C.V., Mexico | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Rest of World | Novo Nordisk Pharmaceuticals Ltd., New Zealand | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Rest of World | Novo Nordisk Pharma (Private) Limited, Pakistan | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Rest of World | Novo Nordisk Panama S.A., Panama | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Rest of World | Novo Nordisk Peru S.A.C., Peru | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Rest of World | Novo Nordisk Pharmaceuticals (Philippines) Inc., Philippines | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Rest of World | Novo Nordisk Pharma (Singapore) Pte Ltd., Singapore | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Rest of World | Novo Investment Pte Limited, Singapore | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Rest of World | Novo Nordisk Pharma Korea Ltd., South Korea | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Rest of World | Novo Nordisk Lanka (PVT) Ltd, Sri Lanka | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Rest of World | Novo Nordisk Pharma (Thailand) Ltd., Thailand | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 93.00% |
Rest of World | Novo Nordisk Venezuela Casa de Representación C.A., Venezuela | |
Disclosure of subsidiaries [line items] | |
Percentage of shares owned | 100.00% |
Denmark | NNIT A/S, Denmark | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in associate | 18.00% |
Denmark | NNE A/S, Denmark | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in associate | 100.00% |
US | Churchill Stateside Solar Fund XIV, LLC, United States | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in associate | 99.00% |
Uncategorized Items - nvo-20201
Label | Element | Value |
Other reserves [member] | Reserve of cash flow hedges [member] | ||
Equity | ifrs-full_Equity | kr 1,802,000,000 |
Equity | ifrs-full_Equity | (1,677,000,000) |
Equity | ifrs-full_Equity | (329,000,000) |
Equity | ifrs-full_Equity | 2,027,000,000 |
Other comprehensive income | ifrs-full_OtherComprehensiveIncome | 1,348,000,000 |
Other comprehensive income | ifrs-full_OtherComprehensiveIncome | 1,713,000,000 |
Other comprehensive income | ifrs-full_OtherComprehensiveIncome | (3,704,000,000) |
Amount removed from reserve of cash flow hedges and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied | ifrs-full_AmountRemovedFromReserveOfCashFlowHedgesAndIncludedInInitialCostOrOtherCarryingAmountOfNonfinancialAssetLiabilityOrFirmCommitmentForWhichFairValueHedgeAccountingIsApplied | 418,000,000 |
Other reserves [member] | Reserve of exchange differences on translation [member] | ||
Equity | ifrs-full_Equity | (1,065,000,000) |
Equity | ifrs-full_Equity | (839,000,000) |
Equity | ifrs-full_Equity | (1,556,000,000) |
Equity | ifrs-full_Equity | (2,528,000,000) |
Other comprehensive income | ifrs-full_OtherComprehensiveIncome | (1,689,000,000) |
Other comprehensive income | ifrs-full_OtherComprehensiveIncome | 226,000,000 |
Other comprehensive income | ifrs-full_OtherComprehensiveIncome | 491,000,000 |
Other reserves [member] | Miscellaneous other reserves [member] | ||
Equity | ifrs-full_Equity | 474,000,000 |
Equity | ifrs-full_Equity | (32,000,000) |
Equity | ifrs-full_Equity | (185,000,000) |
Equity | ifrs-full_Equity | 696,000,000 |
Other comprehensive income | ifrs-full_OtherComprehensiveIncome | (222,000,000) |
Other comprehensive income | ifrs-full_OtherComprehensiveIncome | 728,000,000 |
Other comprehensive income | ifrs-full_OtherComprehensiveIncome | (567,000,000) |
Amount removed from reserve of cash flow hedges and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied | ifrs-full_AmountRemovedFromReserveOfCashFlowHedgesAndIncludedInInitialCostOrOtherCarryingAmountOfNonfinancialAssetLiabilityOrFirmCommitmentForWhichFairValueHedgeAccountingIsApplied | kr (92,000,000) |