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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 million202020192018
Gross sales298,187270,431230,701
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 sales126,946122,021111,831
Provisions for sales rebates
Provisions for sales rebates
DKK million202020192018
At the beginning of the year30,87825,76020,374
Additional provisions, including increases to existing provisions111,921102,78282,631
Amount paid during the year(106,116)(98,655)(78,647)
Adjustments, including unused amounts reversed during the year166381386
Effect of exchange rate adjustment(2,797)6101,016
At the end of the year34,05230,87825,760
DKK million
Provisions
for sales
rebates1
Provisions
for legal
disputes		Provisions
for product
returns
Other
provi-
sions2
2020
total		2019
total
At the beginning of the year30,8782,3751,0821,39835,73329,553
Additional provisions, including increases to existing provisions111,921662413814113,810104,621
Amount used during the year(106,116)(364)(694)(46)(107,220)(99,244)
Adjustments, including unused amounts reversed during the year166—(6)(82)78148
Effect of exchange rate adjustment(2,797)(222)—(42)(3,061)655
At the end of the year34,0522,4517952,04239,34035,733
Non-current liabilities3
3012,2092931,7234,5264,613
Current liabilities33,75124250231934,81431,120
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 careBiopharmTotal
DKK million202020192018202020192018202020192018
Total net sales108,020102,84093,90418,92619,18117,927126,946122,021111,831
Cost of goods sold17,71516,30914,7163,2173,7792,90120,93220,08817,617
Sales and distribution costs29,90328,72926,3963,0253,0943,00132,92831,82329,397
Research and development costs13,53512,12812,2221,9272,0922,58315,46214,22014,805
Administrative costs3,3873,3463,2665716616503,9584,0073,916
Other operating income, net2643095381962916144606001,152
Operating profit 43,74442,63737,84210,3829,8469,40654,12652,48347,248
Operating margin40.5 %41.5 %40.3 %54.9 %51.3 %52.5 %42.6 %43.0 %42.2 %
Depreciation, amortisation and impairment losses expensed4,6243,9163,2101,1291,7457155,7535,6613,925

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 OperationsTotal North America OperationsTotal Novo Nordisk
net sales
Total IOEMEAChinaRest of WorldTotal NAOOf which the US
DKK million202020192018202020192018202020192018202020192018202020192018202020192018202020192018
Diabetes and Obesity care segment:
Long-acting insulin9,9599,0357,9426,4515,9555,2891,4711,0598142,0372,0211,8398,48011,74112,9027,96211,27112,60018,43920,77620,844
 – of which Tresiba®
4,4073,4772,7642,5741,9831,47941887161,4151,4071,2694,5615,7825,2714,1915,5005,1928,9689,2598,035
 – of which Xultophy®
1,7891,4931,0851,6051,4071,0601——18386256557175296427085282,4442,2101,614
 – of which Levemir®
3,7634,0654,0932,2722,5652,7501,0529727984395285453,2645,2427,1023,1295,0636,8807,0279,30711,195
Premix insulin10,2469,7078,8622,9593,1603,0344,8524,3063,7832,4352,2412,0456798711,3326528391,29410,92510,57810,194
 – of which Ryzodeg®
1,291993714321237152394—931752562——————1,291993714
 – of which NovoMix®/NovoLog Mix®
8,9558,7148,1482,6382,9232,8824,8134,3023,7831,5041,4891,4836798711,3326528391,2949,6349,5859,480
Fast-acting insulin10,80810,3049,3326,5846,4225,9312,0751,7531,4502,1492,1291,9517,5058,99910,0217,1018,5929,63418,31319,30319,353
 – of which Fiasp®
832617357764585357———6832—5536262335195972111,3851,243590
 – of which NovoRapid®/NovoLog®
9,9769,6878,9755,8205,8375,5742,0751,7531,4502,0812,0971,9516,9528,3739,7886,5827,9959,42316,92818,06018,763
Human insulin7,3397,3617,3482,3702,4382,5922,6552,8472,8212,3142,0761,9351,5341,6751,9171,4311,5521,7788,8739,0369,265
Total insulin38,35236,40733,48418,36417,97516,84611,0539,9658,8688,9358,4677,77018,19823,28626,17217,14622,25425,30656,55059,69359,656
Victoza®
7,0957,2496,2404,2514,7134,3371,0338985211,8111,6381,38211,65214,68518,09311,29214,21717,56118,74721,93424,333
Ozempic®
3,6341,143393,1129693910——512174—17,57710,0941,75716,6509,5991,63421,21111,2371,796
Rybelsus®
36——36————————1,83750—1,82650—1,87350—
Total GLP-110,7658,3926,2797,3995,6824,3761,0438985212,3231,8121,38231,06624,82919,85029,76823,86619,19541,83133,22126,129
Other Diabetes care2,9463,3893,3607251,0521,0641,5461,6471,6726756906241,0858588909437057334,0314,2474,250
Total Diabetes care52,06348,18843,12326,48824,70922,28613,64212,51011,06111,93310,9699,77650,34948,97346,91247,85746,82545,234102,41297,16190,035
Obesity care (Saxenda®)
2,1182,0831,2111,12498154710919841,0936633,4903,5962,6583,2303,3482,4465,6085,6793,869
Diabetes and Obesity care total54,18150,27144,33427,61225,69022,83313,65212,51911,06212,91712,06210,43953,83952,56949,57051,08750,17347,680108,020102,84093,904
Biopharm segment:
Haemophilia5,7085,9465,5723,5793,6463,6043612841991,7682,0161,7693,9544,3354,0043,6754,0313,7239,66210,2819,576
 – of which NovoSeven®
3,9964,5024,4242,3522,5772,6943452691941,2991,6561,5363,2073,6173,4573,0893,4543,2787,2038,1197,881
 – of which NovoEight®
1,1271,1431,046790844836161553212842053353823083123582911,4621,5251,354
Growth disorders (Norditropin®)
4,8324,2254,0002,2201,9601,9726636202,5462,2292,0082,8723,0502,8342,8543,0352,8237,7047,2756,834
Other Biopharm1,1081,1221,0178869128175542172051964525035002082472621,5601,6251,517
Biopharm total11,64811,29310,5896,6856,5186,3934323252234,5314,4503,9737,2787,8887,3386,7377,3136,80818,92619,18117,927
Total sales by geographical area65,82961,56454,92334,29732,20829,22614,08412,84411,28517,44816,51214,41261,11760,45756,90857,82457,48654,488126,946122,021111,831
Total sales growth as reported6.9 %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 million202020192018
Employee costs (note 2.4)
6,2695,9686,288
Amortisation and impairment losses, intangible assets (note 3.1)
1,025522769
Depreciation and impairment losses, property, plant and equipment (note 3.1)
724783468
Other research and
development costs		7,4446,9477,280
Total research and development costs15,46214,22014,805
As percentage of net sales12.2 %11.7 %13.2 %
Employee Costs and Remuneration to Executive Management and Board of Directors
DKK million202020192018
Wages and salaries26,77825,33525,259
Share-based payment costs (note 5.1)
823363414
Pensions – defined contribution plans1,9611,9101,791
Pensions – defined benefit plans (note 3.5)
13815173
Other social security contributions1,8621,9631,901
Other employee costs2,0442,2032,087
Total employee costs for the year33,60631,92531,525
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		32,26730,47229,920
Included in the income statement:
Cost of goods sold8,8968,1348,164
Sales and distribution costs14,14613,46312,214
Research and development costs6,2695,9686,288
Administrative costs2,8482,6792,755
Other operating income, net108228499
Total employee costs in the
income statement		32,26730,47229,920


Number of employees202020192018
Average number of
full-time employees		43,75942,21842,881
Year-end number of
full-time employees		44,72342,70342,672
Employees (total)45,32343,25843,202
Remuneration to Executive Management and Board of Directors
DKK million202020192018
Salary and short-term incentive119120102
Pension262622
Benefits10144
Long-term incentive1
524022
Severance payments——28
Executive Management in total2
207200178
Fee to Board of Directors2
171917
Total224219195
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 million202020192018
Current tax on profit for the year11,55711,27510,469
Deferred tax on profit for the year1,105(1,559)(1,007)
Tax on profit for the year12,6629,7169,462
Current tax adjustments recognised for prior years(563)(191)(522)
Deferred tax adjustments recognised for prior years(1,107)7747
Income taxes in the
income statement		10,9929,6028,987
Tax on other comprehensive
income for the year,
(income)/expense		577231(755)
Income taxes paid
DKK million202020192018
Income taxes paid in Denmark for current year4,2627,7746,640
Income taxes paid outside Denmark for current year4,5082,2582,376
Income taxes paid/repayments relating to prior years1,336904598
Income taxes paid10,10610,9369,614
Computation of Effective Tax Rate
Computation of effective tax rate
DKK million202020192018
Statutory corporate income tax rate in Denmark22.0 %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 rate20.7 %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 millionProperty,
plant and
equipment		 Intangible
assets		Inventories
Liabilities		OtherOffset
within
countries		Total
2020
Net deferred tax asset/(liability) at 1 January(1,591)(718)1,8113,4521,087—4,041
Income/(charge) to the income statement(47)(2,883)9631,4495202
Income/(charge) to other comprehensive income—92(216)16(469)(577)
Income/(charge) to equity—(92)——20(72)
Acquisition of subsidiaries————276276
Effect of exchange rate adjustment241(2)(300)(30)(307)
Net deferred tax asset/(liability) at 31 December(1,614)(3,600)2,5564,6171,404—3,363
Classified as follows:
Deferred tax asset at 31 December755462,5684,8952,903(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)9732,402667—2,775
Change in accounting policy, leases(865)——865——
Income/(charge) to the income statement(5)(155)8201336891,482
Income/(charge) to other comprehensive income——1847(296)(231)
Income/(charge) to equity————1818
Disposal of subsidiaries———(18)—(18)
Effect of exchange rate adjustment(18)1—23915
Net deferred tax asset/(liability) at 31 December(1,591)(718)1,8113,4521,087—4,041
Classified as follows:
Deferred tax asset at 31 December769583,4283,5801,843(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).