Results for the year (Tables)

12 Months Ended

Dec. 31, 2021

Analysis of income and expense [abstract]

Gross-to-net sales reconciliation

Gross-to-net sales reconciliation
DKK million	2021	2020	2019
Gross sales	340,180	298,187	270,431
US Managed Care and Medicare	(112,929)	(96,716)	(84,202)
US wholesaler charge-backs	(40,354)	(37,036)	(33,772)
US Medicaid rebates	(19,810)	(17,307)	(14,365)
Other US discounts and sales returns	(14,119)	(10,867)	(8,280)
Non-US rebates, discounts and sales returns	(12,168)	(9,315)	(7,791)
Total gross-to-net sales adjustments	(199,380)	(171,241)	(148,410)
Net sales	140,800	126,946	122,021

Provisions for sales rebates

Provisions for sales rebates
DKK million	2021	2020	2019
At the beginning of the year	34,052	30,878	25,760
Additional provisions, including increases to existing provisions	155,602	111,921	102,782
Amount paid during the year	(141,370)	(106,116)	(98,655)
Adjustments, including unused amounts reversed during the year	(284)	166	381
Effect of exchange rate adjustment	2,822	(2,797)	610
At the end of the year	50,822	34,052	30,878

DKK million	Provisions for sales rebates1	Provisions for legal disputes	Provisions for product returns	Other provi- sions2	2021 Total	2020 Total
At the beginning of the year	34,052	2,451	795	2,042	39,340	35,733
Additional provisions, including increases to existing provisions	155,602	608	493	461	157,164	113,810
Amount used during the year	(141,370)	(657)	(450)	(214)	(142,691)	(107,220)
Adjustments, including unused amounts reversed during the year	(284)	(419)	13	(280)	(970)	78
Effect of exchange rate adjustment	2,822	174	7	48	3,051	(3,061)
At the end of the year	50,822	2,157	858	2,057	55,894	39,340
Non-current liabilities3	255	1,895	316	1,908	4,374	4,526
Current liabilities	50,567	262	542	149	51,520	34,814
1. Provisions for sales rebates are related to US Managed Care, Medicare, Medicaid and other 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 2023 and 2024. 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	2021		2020		2019		2021		2020		2019		2021		2020		2019
Total net sales	121,597		108,020		102,840		19,203		18,926		19,181		140,800		126,946		122,021
Cost of goods sold	(19,363)		(17,715)		(16,309)		(4,295)		(3,217)		(3,779)		(23,658)		(20,932)		(20,088)
Sales and distribution costs	(33,791)		(29,903)		(28,729)		(3,217)		(3,025)		(3,094)		(37,008)		(32,928)		(31,823)
Research and development costs	(15,600)		(13,535)		(12,128)		(2,172)		(1,927)		(2,092)		(17,772)		(15,462)		(14,220)
Administrative costs	(3,504)		(3,387)		(3,346)		(546)		(571)		(661)		(4,050)		(3,958)		(4,007)
Other operating income and expenses	199		264		309		133		196		291		332		460		600
Operating profit	49,538		43,744		42,637		9,106		10,382		9,846		58,644		54,126		52,483
Operating margin	40.7	%	40.5	%	41.5	%	47.4	%	54.9	%	51.3	%	41.7	%	42.6	%	43.0	%
Depreciation, amortisation and impairment losses expensed	(4,895)		(4,624)		(3,916)		(1,130)		(1,129)		(1,745)		(6,025)		(5,753)		(5,661)

Net sales – Business segments and geographical areas
	Total International Operations																								Total North America Operations												Total Novo Nordisk net sales
	Total IO						EMEA						China						Rest of World						Total NAO						Of which the US
DKK million	2021		2020		2019		2021		2020		2019		2021		2020		2019		2021		2020		2019		2021		2020		2019		2021		2020		2019		2021		2020		2019
Diabetes and Obesity care segment:
Rybelsus®	524		36		—		289		36		—		—		—		—		235		—		—		4,314		1,837		50		4,243		1,826		50		4,838		1,873		50
Ozempic®	8,856		3,634		1,143		6,393		3,112		969		303		10		—		2,160		512		174		24,849		17,577		10,094		23,168		16,650		9,599		33,705		21,211		11,237
Victoza®	6,726		7,095		7,249		3,527		4,251		4,713		1,544		1,033		898		1,655		1,811		1,638		8,328		11,652		14,685		8,031		11,292		14,217		15,054		18,747		21,934
Total GLP-1	16,106		10,765		8,392		10,209		7,399		5,682		1,847		1,043		898		4,050		2,323		1,812		37,491		31,066		24,829		35,442		29,768		23,866		53,597		41,831		33,221
Long-acting insulin	11,074		9,959		9,035		6,729		6,451		5,955		2,080		1,471		1,059		2,265		2,037		2,021		6,990		8,480		11,741		6,412		7,962		11,271		18,064		18,439		20,776
– of which Tresiba®	5,486		4,407		3,477		2,979		2,574		1,983		1,095		418		87		1,412		1,415		1,407		4,243		4,561		5,782		3,793		4,191		5,500		9,729		8,968		9,259
– of which Xultophy®	2,135		1,789		1,493		1,693		1,605		1,407		3		1		—		439		183		86		522		655		717		512		642		708		2,657		2,444		2,210
– of which Levemir®	3,453		3,763		4,065		2,057		2,272		2,565		982		1,052		972		414		439		528		2,225		3,264		5,242		2,107		3,129		5,063		5,678		7,027		9,307
Premix insulin	10,512		10,246		9,707		2,879		2,959		3,160		5,224		4,852		4,306		2,409		2,435		2,241		691		679		871		665		652		839		11,203		10,925		10,578
– of which Ryzodeg®	1,711		1,291		993		392		321		237		283		39		4		1,036		931		752		—		—		—		—		—		—		1,711		1,291		993
– of which NovoMix®	8,801		8,955		8,714		2,487		2,638		2,923		4,941		4,813		4,302		1,373		1,504		1,489		691		679		871		665		652		839		9,492		9,634		9,585
Fast-acting insulin	10,903		10,808		10,304		6,454		6,584		6,422		2,288		2,075		1,753		2,161		2,149		2,129		6,784		7,505		8,999		6,357		7,101		8,592		17,687		18,313		19,303
– of which Fiasp®	1,106		832		617		965		764		585		—		—		—		141		68		32		642		553		626		605		519		597		1,748		1,385		1,243
– of which NovoRapid®	9,797		9,976		9,687		5,489		5,820		5,837		2,288		2,075		1,753		2,020		2,081		2,097		6,142		6,952		8,373		5,752		6,582		7,995		15,939		16,928		18,060
Human insulin	7,453		7,339		7,361		2,152		2,370		2,438		2,692		2,655		2,847		2,609		2,314		2,076		1,599		1,534		1,675		1,515		1,431		1,552		9,052		8,873		9,036
Total insulin	39,942		38,352		36,407		18,214		18,364		17,975		12,284		11,053		9,965		9,444		8,935		8,467		16,064		18,198		23,286		14,949		17,146		22,254		56,006		56,550		59,693
Other Diabetes care	2,644		2,946		3,389		713		725		1,052		1,432		1,546		1,647		499		675		690		950		1,085		858		806		943		705		3,594		4,031		4,247
Total Diabetes care	58,692		52,063		48,188		29,136		26,488		24,709		15,563		13,642		12,510		13,993		11,933		10,969		54,505		50,349		48,973		51,197		47,857		46,825		113,197		102,412		97,161
Obesity care (Saxenda® and Wegovy®)	3,117		2,118		2,083		1,809		1,124		981		61		10		9		1,247		984		1,093		5,283		3,490		3,596		4,912		3,230		3,348		8,400		5,608		5,679
Diabetes and Obesity care total	61,809		54,181		50,271		30,945		27,612		25,690		15,624		13,652		12,519		15,240		12,917		12,062		59,788		53,839		52,569		56,109		51,087		50,173		121,597		108,020		102,840
Biopharm segment:
Rare blood disorders	5,784		5,708		5,946		3,712		3,579		3,646		222		361		284		1,850		1,768		2,016		4,433		3,954		4,335		4,170		3,675		4,031		10,217		9,662		10,281
– of which Haemophilia A	1,625		1,332		1,176		1,162		983		877		24		16		15		439		333		284		487		381		382		460		358		358		2,112		1,713		1,558
– of which Haemophilia B	400		306		197		268		199		149		4		—		—		128		107		48		237		212		185		102		86		77		637		518		382
– of which NovoSeven®	3,673		3,996		4,502		2,225		2,352		2,577		194		345		269		1,254		1,299		1,656		3,548		3,207		3,617		3,461		3,089		3,454		7,221		7,203		8,119
Rare endocrine disorders	4,880		4,832		4,225		2,212		2,220		1,960		167		66		36		2,501		2,546		2,229		2,423		2,875		3,052		2,400		2,857		3,037		7,303		7,707		7,277
Other Biopharm	1,064		1,108		1,122		837		886		912		6		5		5		221		217		205		619		449		501		330		205		245		1,683		1,557		1,623
Biopharm total	11,728		11,648		11,293		6,761		6,685		6,518		395		432		325		4,572		4,531		4,450		7,475		7,278		7,888		6,900		6,737		7,313		19,203		18,926		19,181
Total sales by geographical area	73,537		65,829		61,564		37,706		34,297		32,208		16,019		14,084		12,844		19,812		17,448		16,512		67,263		61,117		60,457		63,009		57,824		57,486		140,800		126,946		122,021
Total sales growth as reported	11.7	%	6.9	%	12.1	%	9.9	%	6.5	%	10.2	%	13.7	%	9.7	%	13.8	%	13.5	%	5.7	%	14.6	%	10.1	%	1.1	%	6.2	%	9.0	%	0.6	%	5.5	%	10.9	%	4.0	%	9.1	%

Research and development costs

DKK million	2021		2020		2019
Employee costs (note 2.4)	7,328		6,269		5,968
Amortisation and impairment losses, intangible assets (note 3.1)	744		1,025		522
Depreciation and impairment losses, property, plant and equipment (note 3.1)	736		724		783
Other research and development costs	8,964		7,444		6,947
Total research and development costs	17,772		15,462		14,220
As percentage of net sales	12.6	%	12.2	%	11.7	%

Employee costs and remuneration to executive management and board of directors

DKK million	2021	2020	2019
Wages and salaries	28,939	26,778	25,335
Share-based payment costs (note 5.1)	1,040	823	363
Pensions – defined contribution plans	2,022	1,961	1,910
Pensions – defined benefit plans (note N/A)	139	138	151
Other social security contributions	2,203	1,862	1,963
Other employee costs	2,189	2,044	2,203
Total employee costs for the year	36,532	33,606	31,925
Employee costs capitalised as intangible assets and property, plant and equipment	(1,240)	(1,279)	(1,314)
Change in employee costs capitalised as inventories	(56)	(60)	(139)
Total employee costs in the income statement	35,236	32,267	30,472
Included in the income statement:
Cost of goods sold	9,611	8,896	8,134
Sales and distribution costs	15,003	14,146	13,463
Research and development costs	7,328	6,269	5,968
Administrative costs	3,098	2,848	2,679
Other operating income and expenses	196	108	228
Total employee costs in the income statement	35,236	32,267	30,472

Number of employees	2021	2020	2019
Average number of full-time employees	46,171	43,759	42,218
Year-end number of full-time employees	47,792	44,723	42,703
Employees (total)	48,478	45,323	43,258

Remuneration to Executive Management and Board of Directors
DKK million	2021	2020	2019
Salary and short-term incentive	126	119	120
Pension	12	26	26
Benefits	10	10	14
Long-term incentive1	100	52	40
Severance payments	29	—	—
Executive Management in total2	277	207	200
Fee to Board of Directors2	17	17	19
Total	294	224	219
1. Please refer to note 5.1 for further information. 2. Total remuneration for registered members of Executive Management amounts to DKK 202 million (DKK 141 million in 2020 and DKK 135 million in 2019). All members of the Board of Directors are registered.

Income taxes expensed and paid

Income taxes expensed
DKK million	2021	2020	2019
Current tax on profit for the year	13,871	11,557	11,275
Deferred tax on profit for the year	(1,528)	1,105	(1,559)
Tax on profit for the year	12,343	12,662	9,716
Current tax adjustments recognised for prior years	(603)	(563)	(191)
Deferred tax adjustments recognised for prior years	(417)	(1,107)	77
Income taxes in the income statement	11,323	10,992	9,602
Tax on other comprehensive income for the year, (income)/expense	(1,005)	577	231

Income taxes paid
DKK million	2021	2020	2019
Income taxes paid in Denmark for current year	9,703	4,262	7,774
Income taxes paid outside Denmark for current year	3,439	4,508	2,258
Income taxes paid/repayments relating to prior years	1,296	1,336	904
Income taxes paid	14,438	10,106	10,936

Computation of effective tax rate

Computation of effective tax rate
DKK million	2021		2020		2019
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)	(1.5	%)	(2.5	%)	(2.1	%)
Non-taxable income less non-tax-deductible expenses (net)	(0.3	%)	(0.2	%)	0.1	%
Other adjustments (net)	(1.0	%)	1.4	%	(0.2	%)
Effective tax rate	19.2	%	20.7	%	19.8	%

Development in deferred income tax assets and liabilities

Development in deferred income tax assets and liabilities
DKK million	Property, plant and equipment	Intangible assets	Inventories	Liabilities	Other	Offset within countries	Total
2021
Net deferred tax asset/(liability) at 1 January	(1,614)	(3,600)	2,556	4,617	1,404	—	3,363
Income/(charge) to the income statement	(330)	632	387	2,037	(781)		1,945
Income/(charge) to other comprehensive income	—	2	251	(41)	793		1,005
Income/(charge) to equity	—	(2)	—	—	194		192
Additions from acquisitions	—	(4,456)	—	—	976		(3,480)
Effect of exchange rate adjustment	(36)	49	1	319	43		376
Net deferred tax asset/(liability) at 31 December	(1,980)	(7,375)	3,195	6,932	2,629	—	3,401
Classified as follows:
Deferred tax asset at 31 December	719	109	3,210	7,223	3,541	(6,130)	8,672
Deferred tax liability at 31 December	(2,699)	(7,484)	(15)	(291)	(912)	6,130	(5,271)
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)
Additions from acquisitions	—	—	—	—	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)

Earnings per share

		2021	2020	2019
Net profit		47,757	42,138	38,951
Average number of shares outstanding	in million shares	2,296.6	2,333.9	2,374.3
Dilutive effect of average outstanding share pool1,2	in million shares	6.5	6.1	4.4
Average number of shares outstanding, including dilutive effect of outstanding share pool	in million shares	2,303.1	2,340.0	2,378.7
Basic earnings per share	DKK	20.79	18.05	16.41
Diluted earnings per share	DKK	20.74	18.01	16.38
1. For further information on the development in treasury shares, please refer to note 4.2 2. For further information on the outstanding share pool, please refer to note 5.1.