Explanatory note
Table of contents
Introduction and use of certain terms
Forward-looking statements
Part I
Item 1. Identity of Directors, Senior Management and Advisers
Item 2. Offer Statistics and Expected Timetable
Item 3. Key Information
3.A [Reserved]
3.B Capitalization and indebtedness
3.C Reasons for the offer and use of proceeds
3.D Risk factors
Item 4. Information on the Company
4.A History and development of Novartis
4.B Business overview
Innovative Medicines
Compound/ product |
Common name |
Mechanism of action |
Potential indication |
Category |
Formulation/ route of administration |
Year project
entered current development phase |
Planned filing dates/current phase |
||||||||
AVXS-101
(OAV101) |
onasemno-
gene abepar- vovec |
Survival motor neuron
(SMN) gene therapy |
Spinal muscular atrophy
(IT formulation) |
Neuroscience
|
Intrathecal injection
|
2021
|
2025/III
|
||||||||
Beovu
|
brolucizumab
|
VEGF inhibitor
|
Diabetic retinopathy
|
Ophthalmology
|
Intravitreal injection
|
2020
|
2025/III
|
||||||||
CFZ533
|
iscalimab
|
CD40 inhibitor
|
Sjögren's syndrome
|
Immunology
|
Subcutaneous injection
|
2019
|
≥2026/II
|
||||||||
Coartem
|
artemether +
lumefantrine |
PGH-1 (artemisinin
combination therapy) |
Malaria,
uncomplicated (<5 kg patients) |
Global Health
|
Oral
|
2020
|
2024/III
|
||||||||
Cosentyx
|
secukinumab
|
IL‑17A inhibitor
|
Hidradenitis suppurativa
|
Immunology
|
Subcutaneous injection
|
2022
|
US/EU
registration |
||||||||
|
Giant cell arteritis
|
Immunology
|
Subcutaneous injection
|
2021
|
2025/III
|
||||||||||
|
Lupus nephritis
|
Immunology
|
Subcutaneous injection
|
2020
|
≥2026/III
|
||||||||||
|
Psoriatic arthritis (IV formulation)
|
Immunology
|
Intravenous infusion
|
2022
|
US registration
|
||||||||||
|
Ankylosing spondylitis (IV formulation)
|
Immunology
|
Intravenous infusion
|
2022
|
US registration
|
||||||||||
JDQ443
|
TBD
|
KRAS inhibitor
|
Non-small cell lung cancer, 2/3L 1
|
Solid Tumor
|
Oral
|
2022
|
2024/III
|
||||||||
KAE609
|
cipargamin
|
PfATP4 inhibitor
|
Malaria, uncomplicated
|
Global Health
|
Oral
|
2017
|
≥2026/II
|
||||||||
|
Malaria, severe
|
Global Health
|
Oral
|
2022
|
≥2026/II
|
||||||||||
KAF156
|
ganaplacide
|
Non-artemisinin
plasmodium falciparum inhibitor |
Malaria, uncomplicated
|
Global Health
|
Oral
|
2017
|
≥2026/II
|
||||||||
Kisqali
|
ribociclib
|
CDK4 inhibitor
|
Hormone receptor-positive
(HR+)/human epidermal growth factor receptor 2-negative (HER2-) early breast cancer (adjuvant) |
Solid Tumor
|
Oral
|
2018
|
2023/III
|
||||||||
Leqvio
|
inclisiran
|
siRNA
(regulation of LDL-C) |
Secondary prevention of cardiovascular
events in patients with elevated levels of LDL-C |
Cardiovascular
|
Subcutaneous injection
|
2018
|
≥2026/III
|
||||||||
LNA043
|
TBD
|
ANGPTL3 agonist
|
Knee osteoarthritis
|
Immunology
|
Intra-articular
|
2021
|
≥2026/II
|
||||||||
LNP023
|
iptacopan
|
CFB inhibitor
|
IgA nephropathy
|
Cardiovascular
|
Oral
|
2021
|
2024/III
|
||||||||
|
C3 glomerulopathy
|
Cardiovascular
|
Oral
|
2021
|
2024/III
|
||||||||||
|
Paroxysmal nocturnal hemoglobinuria
|
Hematology
|
Oral
|
2021
|
2023/III
|
||||||||||
|
Atypical hemolytic uremic syndrome
|
Hematology
|
Oral
|
2021
|
≥2026/III
|
||||||||||
LOU064
|
remibrutinib
|
BTK inhibitor
|
Chronic spontaneous urticaria
|
Immunology
|
Oral
|
2021
|
2024/III
|
||||||||
|
Sjögren's syndrome
|
Immunology
|
Oral
|
2019
|
≥2026/II
|
||||||||||
|
Multiple sclerosis
|
Neuroscience
|
Oral
|
2021
|
≥2026/III
|
||||||||||
Lutathera
|
lutetium
Lu 177 dotatate/ lutetium (177Lu) oxodotreotide |
Radioligand therapy
targeting SSTR |
Gastroenteropancreatic
neuroendocrine tumors, 1st line in G2/3 tumors |
Solid Tumor
|
Intravenous infusion
|
2020
|
2023/III
|
||||||||
LXE408
|
TBD
|
Proteasome inhibitor
|
Visceral leishmaniasis
|
Global Health
|
Oral
|
2022
|
≥2026/II
|
||||||||
MBG453
|
sabatolimab
|
TIM-3 antagonist
|
Myelodysplastic syndrome
|
Hematology
|
Intravenous infusion
|
2020
|
2024/III
|
||||||||
|
Unfit acute myeloid leukemia
|
Hematology
|
Intravenous infusion
|
2020
|
≥2026/II
|
||||||||||
MIJ821
|
onfasprodil
|
NR2B negative
allosteric modulator |
Major depressive disorder
|
Neuroscience
|
Intravenous infusion
|
2021
|
≥2026/II
|
||||||||
NIS793
|
TBD
|
TGF-beta 1 inhibitor
|
Pancreatic cancer, 1st line
|
Solid Tumor
|
Intravenous infusion
|
2021
|
2025/III
|
||||||||
Piqray
|
alpelisib
|
PI3K‑alpha inhibitor
|
Ovarian cancer
|
Solid Tumor
|
Oral
|
2021
|
2023/III
|
||||||||
Pluvicto
|
lutetium
Lu 177 vipivotide tetraxetan/ lutetium (177Lu) vipivotide tetraxetan |
Radioligand therapy
targeting PSMA |
Metastatic castration-resistant
prostate cancer, pre-taxane |
Solid Tumor
|
Intravenous infusion
|
2021
|
2023/III
|
||||||||
|
|
|
Metastatic hormone-sensitive
prostate cancer |
Solid Tumor
|
Intravenous infusion
|
2021
|
2024/III
|
||||||||
1 Project added to selected development projects table in 2022 – entered Confirmatory Development
|
Compound/ product |
Common name |
Mechanism of action |
Potential indication |
Category |
Formulation/ route of administration |
Year project
entered current development phase |
Planned filing dates/current phase |
||||||||
PPY988 2
|
TBD
|
Gene therapy -
complement factor I modulation |
Geographic atrophy
|
Ophthalmology
|
Subretinal injection
|
2022
|
≥2026/II
|
||||||||
QGE031
|
ligelizumab
|
IgE inhibitor
|
Food allergy
|
Immunology
|
Subcutaneous injection
|
2021
|
≥2026/III
|
||||||||
SAF312
|
libvatrep
|
TRPV1 antagonist
|
Chronic ocular surface pain
|
Ophthalmology
|
Topical
|
2016
|
≥2026/II
|
||||||||
Scemblix
|
asciminib
|
BCR‑ABL inhibitor
|
Chronic myeloid
leukemia, 1st line |
Hematology
|
Oral
|
2021
|
2025/III
|
||||||||
SKO136 3
|
ensovibep
|
Multispecific DARPin
|
Coronavirus infection
|
Global Health
|
Intravenous infusion
|
Not applicable
(N/A) |
TBD4/II
|
||||||||
TQJ230
|
pelacarsen
|
ASO targeting
lipoprotein(a) |
Secondary prevention of cardiovascular
events in patients with elevated levels of lipoprotein(a) |
Cardiovascular
|
Subcutaneous injection
|
2019
|
2025/III
|
||||||||
VAY736
|
ianalumab
|
BAFF-R inhibitor
|
Autoimmune hepatitis
|
Immunology
|
Subcutaneous injection
|
2018
|
≥2026/II
|
||||||||
|
Lupus nephritis 5
|
Immunology
|
Subcutaneous injection
|
2022
|
≥2026/III
|
||||||||||
|
Sjögren’s syndrome
|
Immunology
|
Subcutaneous injection
|
2022
|
≥2026/III
|
||||||||||
|
|
|
Warm autoimmune hemolytic anemia
(wAIHA) 5 |
Hematology
|
Intravenous infusion
|
2022
|
≥2026/III
|
||||||||
VDT482
|
tislelizumab
|
Anti-PD-1 monoclonal
antibody |
Esophageal cancer, 2nd line
|
Solid Tumor
|
Intravenous infusion
|
N/A
|
US/EU
registration |
||||||||
|
Non‑small cell lung cancer
|
Solid Tumor
|
Intravenous infusion
|
N/A
|
EU registration
|
||||||||||
|
Nasopharyngeal carcinoma, 1st line
|
Solid Tumor
|
Intravenous infusion
|
N/A
|
2023/III
|
||||||||||
|
Gastric cancer, 1st line
|
Solid Tumor
|
Intravenous infusion
|
N/A
|
2023/III
|
||||||||||
|
Esophageal cancer, 1st line
|
Solid Tumor
|
Intravenous infusion
|
N/A
|
2023/III
|
||||||||||
|
Localized esophageal cancer
|
Solid Tumor
|
Intravenous infusion
|
N/A
|
2024/III
|
||||||||||
|
Hepatocellular carcinoma, 1st line
|
Solid Tumor
|
Intravenous infusion
|
N/A
|
2023/III
|
||||||||||
|
Small cell lung cancer, 1st line
|
Solid Tumor
|
Intravenous infusion
|
N/A
|
2024/III
|
||||||||||
|
Urothelial cell carcinoma, 1st line 6
|
Solid Tumor
|
Intravenous infusion
|
N/A
|
≥2026/III
|
||||||||||
VPM087
|
gevokizumab
|
IL-1 beta antagonist
|
Colorectal cancer, 1st line
|
Solid Tumor
|
Intravenous infusion
|
2019
|
≥2026/I
|
||||||||
Xolair
|
omalizumab
|
IgE inhibitor
|
Food allergy
|
Immunology
|
Subcutaneous injection
|
2019
|
2023/III
|
||||||||
XXB750 5
|
TBD
|
NPR1 agonist
|
Hypertension
|
Cardiovascular
|
Subcutaneous injection
|
2022
|
≥2026/II
|
||||||||
2 Entered confirmatory development following the acquisition of Gyroscope Thereapeutics.
|
|||||||||||||||
3 In-licensed from Molecular Partners in 2021 (option deal)
|
|||||||||||||||
4 No definite submission date can be provided at this time
|
|||||||||||||||
5 Project added to selected development projects table in 2022 – entered Confirmatory Development
|
|||||||||||||||
6 Formerly “bladder urothelial cell carcinoma”. Indication language updated in 2022 to reflect latest development plan
|
|||||||||||||||
|
|||||||||||||||
|
Compound/product
|
Potential indication
|
Change
|
Reason
|
||||
ACZ885 (canakinumab)
|
Non‑small cell lung cancer, adjuvant
|
Removed
|
Development discontinued
|
||||
Beovu
|
Diabetic macular edema
|
Commercialized
|
|||||
CFZ533 (iscalimab)
|
Liver transplantation
|
Removed
|
Development discontinued
|
||||
Cosentyx
|
Ankylosing spondylitis head‑to‑head study versus Sandoz biosimilar Hyrimoz (adalimumab)
|
Removed
|
Development discontinued
|
||||
Cosentyx
|
Lichen Planus
|
Removed
|
Development discontinued
|
||||
CSJ117
|
Asthma
|
Removed
|
Development discontinued
|
||||
Jakavi
|
Acute graft‑versus‑host disease
|
Commercialized
|
|||||
Jakavi
|
Chronic graft‑versus‑host disease
|
Commercialized
|
|||||
Kymriah
|
Relapsed/refractory follicular lymphoma
|
Commercialized
|
|||||
LJN452
|
Nonalcoholic steatohepatitis
|
Removed
|
Development discontinued
|
||||
LMI070
|
Huntington's disease
|
Removed
|
Development discontinued
|
||||
LNP023
|
Membranous nephropathy
|
Removed
|
Development discontinued
|
||||
Vijoice 1
|
PIK3CA-related overgrowth spectrum
|
Commercialized
|
|||||
Piqray
|
Triple negative breast cancer
|
Removed
|
Development discontinued
|
||||
Piqray
|
Human epidermal growth factor receptor 2-positive (HER2+) advanced breast cancer
|
Removed
|
Development discontinued
|
||||
Pluvicto
|
Metastatic castration-resistant prostate cancer, post-taxane
|
Commercialized
|
|||||
QBW251 (icenticaftor)
|
Chronic obstructive pulmonary disease
|
Removed
|
Development discontinued
|
||||
QGE031 (ligelizumab)
|
Chronic spontaneous urticaria
|
Removed
|
Development discontinued
|
||||
QGE031 (ligelizumab)
|
Chronic inducible urticaria
|
Removed
|
Development discontinued
|
||||
Scemblix
|
Chronic myeloid leukemia, 3rd line
|
Commercialized
|
|||||
UNR844
|
Presbyopia
|
Removed
|
Development discontinued
|
||||
1 Formerly listed as BYL719
|
2022 net sales to third parties
|
|||||
USD millions
|
%
|
||||
United States
|
15 899
|
39
|
|||
Europe
|
13 554
|
33
|
|||
Asia, Africa, Australasia
|
8 929
|
22
|
|||
Canada and Latin America
|
2 914
|
6
|
|||
Total
|
41 296
|
100
|
|||
Of which in Established Markets 1
|
30 548
|
74
|
|||
Of which in Emerging Growth Markets 1
|
10 748
|
26
|
|||
1 Emerging Growth Markets comprise all markets other than the Established Markets of the US, Canada, Western Europe, Japan, Australia and New Zealand.
|
Sandoz
Product
|
Originator drug
|
Description
|
|||
Amoxicillin/clavulanic acid
|
Augmentin ®
|
Antibiotic
|
|||
Zoledronic acid
|
Aclasta
|
Osteoporosis treatment
|
|||
Acetylcysteine
|
Various
|
Mucolytic agent
|
|||
Tacrolimus
|
Various
|
Immunosuppressive agent
|
|||
Active ingredients
|
Description
|
||
Oral and sterile penicillins
|
Anti‑infectives
|
||
Oral and sterile cephalosporins
|
Anti‑infectives
|
||
Clavulanic acid and mixtures with clavulanic acid
|
Beta‑lactam inhibitors
|
||
Classical and semisynthetic macrolides
|
Anti‑infectives
|
||
Intermediates
|
Description
|
||
Various cephalosporin intermediates
|
Anti‑infectives
|
||
Macrolide base intermediates
|
Anti‑infectives
|
||
Various crude compounds produced by fermentation
|
Cyclosporine, ascomycin, rapamycin, mycophenolic acid, etc.
|
||
Product
|
Originator drug
|
Description
|
|||
Omnitrope
|
Genotropin ®
|
Recombinant human growth hormone to treat growth disorders and growth hormone deficiency
|
|||
Binocrit and Epoetin alfa Hexal
|
Eprex®/Erypo ®
|
Recombinant protein (erythropoiesis-stimulating) agent to treat anemia
|
|||
Zarzio, Zarxio and Filgrastim Hexal
|
Neupogen ®
|
Recombinant protein (granulocyte colony-stimulating factor, short-acting) used in oncology
|
|||
Glatopa
|
Copaxone ®
|
Treatment for relapsing forms of multiple sclerosis
|
|||
Erelzi 1
|
Enbrel ®
|
Fusion protein (TNF-alpha receptor) to treat multiple immune-mediated inflammatory diseases
|
|||
Rixathon
|
MabThera ®
|
Chimeric monoclonal antibody (directed against CD20 protein on B-cells) to treat blood cancers and immunological diseases
|
|||
Hyrimoz
|
Humira ®
|
Monoclonal antibody (TNF-alpha antibody) to treat multiple immune-mediated inflammatory diseases
|
|||
Zessly
|
Remicade ®
|
Monoclonal antibody (TNF-alpha antibody) to treat multiple immune-mediated inflammatory diseases
|
|||
Ziextenzo
|
Neulasta ®
|
PEGylated form of a recombinant human granulocyte colony-stimulating factor (long-acting) to reduce duration of chemotherapy-induced neutropenia and incidence of chemotherapy-induced febrile neutropenia
|
|||
1 Approved in the US in 2016. In patent litigation with Amgen, which markets Enbrel®, the US District Court of New Jersey ruled against Sandoz in August 2019, which was upheld on appeal. The decision is final and Sandoz cannot launch its Erelzi product in the US until 2029.
|
Project/
product |
Common
name (INN) |
Mechanism of action |
Potential indication/indications |
Therapeutic areas |
Route of
administration |
Current phase |
|||||||
GP2411
|
denosumab
|
Anti-RANKL monoclonal antibody
|
Osteoporosis (same as originator)
|
Endocrinology, Neurology
|
Subcutaneous
|
Phase III
|
|||||||
SOK583
|
aflibercept
|
Recombinant fusion protein that blocks VEGF-A
|
Ophthalmology indication (same as originator)
|
Ophthalmology
|
Intravitreal
|
Phase III
|
|||||||
EGI014A11
|
trastuzumab
|
Anti-HER2 recombinant IgG1, humanized monoclonal antibody
|
HER2+ cancer tumors
|
Oncology
|
Intravenous
|
Registration
|
|||||||
DST356A12
|
natalizumab
|
Anti-alpha4 integrin monoclonal antibody
|
Multiple sclerosis and Crohn’s disease
|
Neurology, Immunology (US only)
|
Intravenous
|
Registration
|
|||||||
HFT896, SMQ969, PYB1063
|
insulin glargine, lispro, aspart
|
Long-acting (HFT896)/ rapid-acting insulin
|
Diabetes
|
Endocrinology, Diabetology
|
Subcutaneous
|
Phase III/ Phase I
|
|||||||
VVF3794
|
bevacizumab
|
Recombinant humanized monoclonal antibody that blocks VEGF
|
Solid tumors
|
Oncology
|
Intravenous
|
Registration
|
|||||||
1 Development in collaboration with EirGenix, Inc.
|
|||||||||||||
2 Development in collaboration with Polpharma Biologics
|
|||||||||||||
3 Development in collaboration with Gan & Lee
|
|||||||||||||
4 Development in collaboration with Bio-Thera Solutions
|
2022 net sales to third parties
|
|||||
USD millions
|
%
|
||||
Europe
|
4 913
|
53
|
|||
United States
|
1 754
|
19
|
|||
Asia, Africa, Australasia
|
1 613
|
17
|
|||
Canada and Latin America
|
969
|
11
|
|||
Total
|
9 249
|
100
|
|||
Of which in Established Markets 1
|
6 460
|
70
|
|||
Of which in Emerging Growth Markets 1
|
2 789
|
30
|
|||
1 Emerging Growth Markets comprise all markets other than the Established Markets of the US, Canada, Western Europe, Japan, Australia and New Zealand.
|
4.C Organizational structure
4.D Property, plants and equipment
Location |
Size of site
(in square meters) |
Major activity |
|||
Basel, Switzerland – St. Johann
|
589 000
|
Global Group headquarters; global Innovative Medicines Division headquarters; global Sandoz Division headquarters; research and development; production of drug substances and drug intermediates
|
|||
Kundl and Schaftenau, Austria
|
480 000
|
Production of biotechnological products, drug products and finished products, anti‑infectives, active drug substances and nucleic acids; product development
|
|||
East Hanover, New Jersey
|
391 000
|
Innovative Medicines Division US headquarters; research and development
|
|||
Barleben, Germany
|
340 000
|
Production of broad range of generics finished dosage forms
|
|||
Cambridge, Massachusetts
|
201 800
|
Research and development
|
|||
Menges, Slovenia
|
133 763
|
Production of drug substances and drug intermediates
|
|||
Shanghai, China
|
106 500
|
Research and development
|
|||
Stein, Switzerland
|
64 700
|
Production of sterile vials, pre‑filled syringes and ampoules; inhalation capsules, tablets and transdermals; active pharmaceutical ingredients; and cell and gene therapies
|
|||
Holzkirchen, Germany
|
64 200
|
Sandoz Division production of transdermal delivery systems and certain international and global service functions.
|
|||
Huningue, France
|
35 000
|
Production of drug substances for clinical and commercial supply
|
|||
Durham, North Carolina
|
15 794
|
Manufacture, package and release commercial Zolgensma product and certain clinical development activities
|
|||
Princeton, New Jersey
|
14 300
|
Sandoz Division US headquarters
|
|||
Schweizerhalle, Switzerland
|
8 880
|
Manufacture of small-interfering RNA (siRNA) drug substance for Leqvio
|
|||
Item 4A. Unresolved Staff Comments
Item 5. Operating and Financial Review and Prospects
5.A Operating results
(USD millions unless indicated otherwise) |
Year ended Dec 31, 2022 |
Year ended Dec 31, 2021 |
Change in USD % |
Change in
constant currencies %1 |
|||||
Net sales to third parties
|
50 545
|
51 626
|
-2
|
4
|
|||||
Other revenues
|
1 283
|
1 251
|
3
|
4
|
|||||
Cost of goods sold
|
-15 486
|
-15 867
|
2
|
-4
|
|||||
Gross profit
|
36 342
|
37 010
|
-2
|
4
|
|||||
Selling, general and administration
|
-14 253
|
-14 886
|
4
|
-1
|
|||||
Research and development
|
-9 996
|
-9 540
|
-5
|
-9
|
|||||
Other income
|
805
|
1 852
|
-57
|
-54
|
|||||
Other expense
|
-3 701
|
-2 747
|
-35
|
-43
|
|||||
Operating income
|
9 197
|
11 689
|
-21
|
-13
|
|||||
% of net sales to third parties
|
18.2
|
22.6
|
|||||||
(Loss)/income from associated companies
|
-9
|
15 339
|
nm
|
nm
|
|||||
Interest expense
|
-837
|
-811
|
-3
|
-5
|
|||||
Other financial income and expense
|
20
|
-80
|
nm
|
nm
|
|||||
Income before taxes
|
8 371
|
26 137
|
-68
|
-64
|
|||||
Income taxes
|
-1 416
|
-2 119
|
33
|
25
|
|||||
Net income
|
6 955
|
24 018
|
-71
|
-67
|
|||||
Attributable to:
|
|||||||||
Shareholders of Novartis AG
|
6 955
|
24 021
|
-71
|
-67
|
|||||
Non-controlling interests
|
0
|
-3
|
nm
|
nm
|
|||||
Basic earnings per share (USD)
|
3.19
|
10.71
|
-70
|
-66
|
|||||
Net cash flows from operating activities
|
14 236
|
15 071
|
-6
|
||||||
Free cash flow 1
|
11 945
|
13 282
|
-10
|
||||||
1 For an explanation of non-IFRS measures and reconciliation tables, see "—Non-IFRS measures as defined by Novartis."
|
|||||||||
nm = not meaningful
|
(USD millions) |
Year ended Dec 31, 2022 |
Year ended Dec 31, 2021 |
Change in USD % |
Change in
constant currencies % |
|||||
Innovative Medicines
|
41 296
|
41 995
|
-2
|
4
|
|||||
Sandoz
|
9 249
|
9 631
|
-4
|
4
|
|||||
Net sales to third parties
|
50 545
|
51 626
|
-2
|
4
|
|||||
(USD millions) |
Year ended Dec 31, 2022 |
Year ended Dec 31, 20211 |
Change in USD % |
Change in
constant currencies % |
|||||
Cardiovascular
|
4 756
|
3 560
|
34
|
40
|
|||||
Immunology
|
7 287
|
7 205
|
1
|
7
|
|||||
Neuroscience
|
5 051
|
5 007
|
1
|
5
|
|||||
Solid Tumors
|
4 723
|
4 101
|
15
|
21
|
|||||
Hematology
|
6 452
|
6 430
|
0
|
7
|
|||||
Other Promoted Brands
|
3 127
|
3 451
|
-9
|
-1
|
|||||
Total Promoted Brands
|
31 396
|
29 754
|
6
|
12
|
|||||
Established Brands
|
9 900
|
12 241
|
-19
|
- 13
|
|||||
Total Innovative Medicines
|
41 296
|
41 995
|
-2
|
4
|
|||||
1 Reclassified to reflect the new Innovative Medicines divisional structures announced on April 4, 2022
|
US
|
Rest of world
|
Total
|
|||||||||||||||||||
Brands |
Brand classification by
therapeutic area, other promoted brands or established brands |
Key indications |
USD m |
% change USD/cc2 |
USD m |
% change USD |
% change cc2 |
USD m |
% change USD |
% change cc2 |
|||||||||||
Cosentyx
|
Immunology
|
Psoriasis (PsO), ankylosing spondylitis (AS), psoriatic arthritis (PsA), non-radiographic axial spondyloarthritis (nr-axSPA)
|
2 770
|
-4
|
2 018
|
10
|
20
|
4 788
|
1
|
5
|
|||||||||||
Entresto
|
Cardiovascular
|
Chronic heart failure, hypertension
|
2 354
|
38
|
2 290
|
25
|
37
|
4 644
|
31
|
37
|
|||||||||||
Promacta/Revolade
|
Hematology
|
Immune thrombocytopenia (ITP), severe aplastic anemia (SAA)
|
1 083
|
14
|
1 005
|
-6
|
5
|
2 088
|
4
|
9
|
|||||||||||
Gilenya
|
Neuroscience
|
Relapsing multiple sclerosis (RMS)
|
1 153
|
-19
|
860
|
-37
|
-29
|
2 013
|
-28
|
-24
|
|||||||||||
Tasigna
|
Hematology
|
Chronic myeloid leukemia (CML)
|
877
|
-1
|
1 046
|
-11
|
-2
|
1 923
|
-7
|
-1
|
|||||||||||
Lucentis
|
Other Promoted Brands
|
Age-related macular degeneration (AMD), diabetic macular edema (DME), retinal vein occlusion (RVO)
|
1 874
|
-13
|
-4
|
1 874
|
-13
|
-4
|
|||||||||||||
Tafinlar + Mekinist
|
Solid Tumors
|
BRAF V600+ metastatic adjuvant melanoma, advanced non-small cell lung cancer (NSCLC), tumor agnostic with BRAF mutation indication
|
678
|
12
|
1 092
|
0
|
10
|
1 770
|
5
|
11
|
|||||||||||
Jakavi
|
Hematology
|
Myelofibrosis (MF), polycytomia vera (PV), graft-versus-host disease (GvHD)
|
1 561
|
-2
|
9
|
1 561
|
-2
|
9
|
|||||||||||||
Zolgensma
|
Neuroscience
|
Spinal muscular atrophy (SMA)
|
434
|
-7
|
936
|
6
|
12
|
1 370
|
1
|
5
|
|||||||||||
Xolair 1
|
Immunology
|
Severe allergic asthma (SAA), chronic spontaneous urticaria (CSU), nasal polyps
|
1 365
|
-4
|
6
|
1 365
|
-4
|
6
|
|||||||||||||
Sandostatin
|
Established Brands
|
Carcinoid tumors, acromegaly
|
800
|
-5
|
438
|
-23
|
-16
|
1 238
|
-12
|
-10
|
|||||||||||
Kisqali
|
Solid Tumors
|
HR+/HER2- metastatic breast cancer
|
472
|
39
|
759
|
27
|
38
|
1 231
|
31
|
38
|
|||||||||||
Ilaris
|
Immunology
|
Auto-inflammatory (CAPS, TRAPS, HIDS/MKD, FMF, SJIA, AOSD, gout)
|
570
|
14
|
563
|
1
|
16
|
1 133
|
7
|
15
|
|||||||||||
Kesimpta
|
Neuroscience
|
Relapsing-remitting multiple sclerosis (RRMS)
|
921
|
165
|
171
|
nm
|
nm
|
1 092
|
194
|
200
|
|||||||||||
Galvus Group
|
Established Brands
|
Type 2 diabetes
|
859
|
-21
|
-12
|
859
|
-21
|
-12
|
|||||||||||||
Gleevec/Glivec
|
Established Brands
|
Chronic myeloid leukemia (CML), gastrointestinal stromal tumors (GIST)
|
205
|
-22
|
540
|
-29
|
-23
|
745
|
-27
|
-22
|
|||||||||||
Exforge Group
|
Established Brands
|
Hypertension
|
14
|
0
|
729
|
-18
|
-12
|
743
|
-18
|
-12
|
|||||||||||
Diovan Group
|
Established Brands
|
Hypertension
|
55
|
8
|
597
|
-17
|
-10
|
652
|
-16
|
-9
|
|||||||||||
Kymriah
|
Hematology
|
r/r pediatric and young adults acute lymphoblastic leukemia (ALL), diffuse large B-cell lymphoma (DLBCL), follicular lymphoma (FL)
|
196
|
-15
|
340
|
-5
|
7
|
536
|
-9
|
-2
|
|||||||||||
Afinitor/Votubia
|
Established Brands
|
Breast cancer/ tuberous sclerosis complex (TSC)
|
171
|
-67
|
341
|
-18
|
-8
|
512
|
-45
|
-41
|
|||||||||||
Top 20 brands total
|
12 753
|
6
|
19 384
|
-5
|
5
|
32 137
|
-1
|
5
|
|||||||||||||
Rest of portfolio
|
3 146
|
6
|
6 013
|
-9
|
0
|
9 159
|
-4
|
2
|
|||||||||||||
Total division net sales to third parties
|
15 899
|
6
|
25 397
|
-6
|
3
|
41 296
|
-2
|
4
|
|||||||||||||
1 Net sales to third parties reflect Xolair sales for all indications.
|
|||||||||||||||||||||
2 For an explanation of non-IFRS measures and reconciliation tables, see "—Non-IFRS measures as defined by Novartis."
|
|||||||||||||||||||||
nm = not meaningful
|
(USD millions) |
Year ended Dec 31, 2022 |
Year ended Dec 31, 2021 |
Change in USD % |
Change in
constant currencies % |
|||||
Retail Generics1
|
6 776
|
7 092
|
-4
|
4
|
|||||
Biopharmaceuticals
|
2 093
|
2 116
|
-1
|
9
|
|||||
Anti-Infectives (partner label/API)1
|
380
|
423
|
-10
|
-5
|
|||||
Total Sandoz
|
9 249
|
9 631
|
-4
|
4
|
|||||
|
|||||||||
1 Sandoz total anti-infectives net sales to third parties amounted to USD 1.2 billion (2021: USD 1.1 billion; 2020: USD 1.2 billion), of which USD 777 million (2021: USD 707 million; 2020: USD 694 million) is sold through the Retail Generics business franchise and USD 380 million (2021: USD 423 million; 2020: USD 474 million) is sold to other third-party companies through the Anti-Infectives business franchise.
|
(USD millions) |
Year ended Dec 31, 2022 |
% of
net sales to third parties |
Year ended Dec 31, 2021 |
% of
net sales to third parties |
Change in USD % |
Change in
constant currencies % |
|||||||
Innovative Medicines
|
8 786
|
21.3
|
10 688
|
25.5
|
-18
|
-9
|
|||||||
Sandoz
|
1 448
|
15.7
|
1 600
|
16.6
|
-10
|
-2
|
|||||||
Corporate
|
-1 037
|
-599
|
-73
|
-84
|
|||||||||
Operating income
|
9 197
|
18.2
|
11 689
|
22.6
|
-21
|
-13
|
|||||||
(USD millions unless indicated otherwise) |
Year ended Dec 31, 2022 |
Year ended Dec 31, 2021 |
Change in USD % |
Change in
constant currencies % |
|||||
Core gross profit
|
40 392
|
41 097
|
-2
|
4
|
|||||
Selling, general and administration
|
-14 190
|
-14 815
|
4
|
-1
|
|||||
Research and development
|
-9 088
|
-9 041
|
-1
|
-5
|
|||||
Other income
|
384
|
421
|
-9
|
-2
|
|||||
Other expense
|
-833
|
-1 074
|
22
|
17
|
|||||
Core operating income
|
16 665
|
16 588
|
0
|
8
|
|||||
As % of net sales to third parties
|
33.0
|
32.1
|
|||||||
1 For an explanation of non-IFRS measures and reconciliation tables, see "—Non-IFRS measures as defined by Novartis."
|
(USD millions) |
Year ended Dec 31, 2022 |
% of
net sales to third parties |
Year ended Dec 31, 2021 |
% of
net sales to third parties |
Change in USD % |
Change in
constant currencies % |
|||||||
Innovative Medicines
|
15 237
|
36.9
|
15 215
|
36.2
|
0
|
8
|
|||||||
Sandoz
|
1 903
|
20.6
|
2 064
|
21.4
|
-8
|
-1
|
|||||||
Corporate
|
-475
|
-691
|
31
|
28
|
|||||||||
Core operating income
|
16 665
|
33.0
|
16 588
|
32.1
|
0
|
8
|
|||||||
(USD millions unless indicated otherwise) |
Year ended Dec 31, 2022 |
Year ended Dec 31, 2021 |
Change in USD % |
Change in
constant currencies % |
|||||
Research and exploratory development
|
-2 938
|
-3 209
|
8
|
6
|
|||||
Confirmatory development
|
-6 234
|
-5 432
|
-15
|
-20
|
|||||
Total Innovative Medicines Division research and development expense
|
-9 172
|
-8 641
|
-6
|
-10
|
|||||
As % of Innovative Medicines net sales to third parties
|
22.2
|
20.6
|
|||||||
Core research and exploratory development1
|
-2 784
|
-2 809
|
1
|
-1
|
|||||
Core confirmatory development1
|
-5 483
|
-5 341
|
-3
|
-7
|
|||||
Total core Innovative Medicines Division research and development expense
|
-8 267
|
-8 150
|
-1
|
-5
|
|||||
As % of Innovative Medicines net sales to third parties
|
20.0
|
19.4
|
|||||||
1 Core results exclude impairments, amortization and certain other items. For an explanation of non-IFRS measures and reconciliation tables, see "—Non-IFRS measures as defined by Novartis."
|
(USD millions unless indicated otherwise) |
Year ended Dec 31, 2022 |
Year ended Dec 31, 2021 |
Change in USD % |
Change in
constant currencies % |
|||||
Operating income
|
9 197
|
11 689
|
-21
|
-13
|
|||||
(Loss)/income from associated companies
|
-9
|
15 339
|
nm
|
nm
|
|||||
Interest expense
|
-837
|
-811
|
-3
|
-5
|
|||||
Other financial income and expense
|
20
|
-80
|
nm
|
nm
|
|||||
Income before taxes
|
8 371
|
26 137
|
-68
|
-64
|
|||||
Income taxes
|
-1 416
|
-2 119
|
33
|
25
|
|||||
Net income
|
6 955
|
24 018
|
-71
|
-67
|
|||||
Attributable to:
|
|||||||||
Shareholders of Novartis AG
|
6 955
|
24 021
|
-71
|
-67
|
|||||
Non-controlling interests
|
0
|
-3
|
nm
|
nm
|
|||||
Basic earnings per share (USD)
|
3.19
|
10.71
|
-70
|
-66
|
|||||
nm = not meaningful
|
(USD millions unless indicated otherwise) |
Year ended Dec 31, 2022 |
Year ended Dec 31, 2021 |
Change in USD % |
Change in
constant currencies % |
|||||
Core operating income
|
16 665
|
16 588
|
0
|
8
|
|||||
Core (loss)/income from associated companies
|
-9
|
993
|
nm
|
nm
|
|||||
Core interest expense
|
-837
|
-811
|
-3
|
-5
|
|||||
Core other financial income and expense
|
141
|
-41
|
nm
|
nm
|
|||||
Core income before taxes
|
15 960
|
16 729
|
-5
|
3
|
|||||
Core income taxes
|
-2 608
|
-2 635
|
1
|
-7
|
|||||
Core net income
|
13 352
|
14 094
|
-5
|
3
|
|||||
Core basic earnings per share (USD)
|
6.12
|
6.29
|
-3
|
6
|
|||||
nm = not meaningful
|
Excluding Roche investment impacts2
|
|||||||||
Year ended
Dec 31, 2022 |
Year ended
Dec 31, 2021 |
% change
USD |
% change
cc1 |
||||||
Operating income
|
9 197
|
11 689
|
-21
|
-13
|
|||||
Loss from associated companies
|
-9
|
-2
|
nm
|
nm
|
|||||
Interest expense
|
-837
|
-811
|
-3
|
-5
|
|||||
Other financial income and expense
|
20
|
-96
|
nm
|
nm
|
|||||
Income taxes
|
-1 416
|
-2 119
|
33
|
25
|
|||||
Net income
|
6 955
|
8 661
|
-20
|
-9
|
|||||
Basic earnings per share (USD)
|
3.19
|
3.86
|
-17
|
-7
|
|||||
Net cash flows from operating activities
|
14 236
|
14 549
|
-2
|
||||||
Free cash flow 1
|
11 945
|
12 760
|
-6
|
||||||
|
|||||||||
Core 1
|
|||||||||
Core operating income
|
16 665
|
16 588
|
0
|
8
|
|||||
Core net income
|
13 352
|
13 099
|
2
|
11
|
|||||
Core basic earnings per share (USD)
|
6.12
|
5.84
|
5
|
14
|
|||||
1 For an explanation of non-IFRS measures and reconciliation tables, see "—Non-IFRS measures as defined by Novartis."
|
|||||||||
2 For a reconciliation of 2021 IFRS results and non-IFRS measures core results and free cash flow to exclude the impacts of the 2021 divestment of our Roche investment, see "—Non-IFRS measures as defined by Novartis."
|
|||||||||
nm = not meaningful
|
(USD millions)
|
2022
|
2021
|
|||
Operating income
|
9 197
|
11 689
|
|||
Depreciation of property, plant and equipment
|
1 163
|
1 208
|
|||
Depreciation of right-of-use assets
|
300
|
318
|
|||
Amortization of intangible assets
|
3 982
|
3 903
|
|||
Impairments of property, plant and equipment, right-of-use assets and intangible assets 1
|
1 736
|
684
|
|||
EBITDA
|
16 378
|
17 802
|
|||
1 There were no impairments of right-of-use assets in 2021.
|
(USD millions)
|
Dec 31, 2022
|
Dec 31, 2021
|
|||
Market capitalization
|
191 530
|
196 107
|
|||
Non-controlling interests
|
81
|
167
|
|||
Non-current financial debts
|
20 244
|
22 902
|
|||
Current financial debts and derivative financial instruments
|
5 931
|
6 295
|
|||
Marketable securities, commodities, time deposits and derivative financial instruments
|
-11 413
|
-15 922
|
|||
Cash and cash equivalents
|
-7 517
|
-12 407
|
|||
Enterprise value
|
198 856
|
197 142
|
|||
|
Innovative Medicines
|
Sandoz
|
Corporate
|
Group
|
||||||||||||||
(USD millions unless indicated otherwise)
|
2022
|
2021
|
2022
|
2021
|
2022
|
2021
|
2022
|
2021
|
|||||||||
IFRS operating income
|
8 786
|
10 688
|
1 448
|
1 600
|
-1 037
|
-599
|
9 197
|
11 689
|
|||||||||
Amortization of intangible assets
|
3 585
|
3 528
|
221
|
236
|
3 806
|
3 764
|
|||||||||||
Impairments
|
|||||||||||||||||
Intangible assets
|
1 291
|
360
|
25
|
27
|
2
|
1 318
|
387
|
||||||||||
Property, plant and equipment related to the Group-wide rationalization of manufacturing sites
|
286
|
219
|
-2
|
7
|
284
|
226
|
|||||||||||
Other property, plant and equipment
|
85
|
40
|
85
|
40
|
|||||||||||||
Total impairment charges
|
1 662
|
619
|
23
|
34
|
2
|
1 687
|
653
|
||||||||||
Acquisition or divestment of businesses and related items
|
|||||||||||||||||
- Income
|
-2
|
-4
|
-64
|
-4
|
-66
|
||||||||||||
- Expense
|
8
|
1
|
106
|
8
|
107
|
||||||||||||
Total acquisition or divestment of businesses and related items, net
|
8
|
-1
|
-4
|
42
|
4
|
41
|
|||||||||||
Other items
|
|||||||||||||||||
Divestment gains
|
-161
|
-649
|
-4
|
-5
|
-75
|
-166
|
-728
|
||||||||||
Financial assets - fair value adjustments
|
134
|
-43
|
126
|
5
|
260
|
-38
|
|||||||||||
Restructuring and related items
|
|||||||||||||||||
- Income
|
-33
|
-32
|
-14
|
-36
|
-1
|
-6
|
-48
|
-74
|
|||||||||
- Expense
|
1 572
|
833
|
167
|
193
|
449
|
32
|
2 188
|
1 058
|
|||||||||
Legal-related items
|
|||||||||||||||||
- Income
|
-51
|
-11
|
-51
|
-11
|
|||||||||||||
- Expense
|
364
|
170
|
56
|
53
|
420
|
223
|
|||||||||||
Additional income
|
-692
|
-139
|
-6
|
-1
|
-6
|
-138
|
-704
|
-278
|
|||||||||
Additional expense
|
63
|
241
|
8
|
1
|
48
|
72
|
289
|
||||||||||
Total other items
|
1 196
|
381
|
211
|
194
|
564
|
-134
|
1 971
|
441
|
|||||||||
Total adjustments
|
6 451
|
4 527
|
455
|
464
|
562
|
-92
|
7 468
|
4 899
|
|||||||||
Core operating income
|
15 237
|
15 215
|
1 903
|
2 064
|
-475
|
-691
|
16 665
|
16 588
|
|||||||||
as % of net sales
|
36.9%
|
36.2%
|
20.6%
|
21.4%
|
33.0%
|
32.1%
|
|||||||||||
(Loss)/income from associated companies
|
-2
|
5
|
2
|
2
|
-9
|
15 332
|
-9
|
15 339
|
|||||||||
Core adjustments to income from associated companies, net of tax
|
-14 346
|
-14 346
|
|||||||||||||||
Interest expense
|
-837
|
-811
|
|||||||||||||||
Other financial income and expense
|
20
|
-80
|
|||||||||||||||
Core adjustments to other financial income and expense
|
121
|
39
|
|||||||||||||||
Income taxes, adjusted for above items (core income taxes)
|
-2 608
|
-2 635
|
|||||||||||||||
Core net income
|
13 352
|
14 094
|
|||||||||||||||
Core net income attributable to shareholders of Novartis AG
|
13 352
|
14 097
|
|||||||||||||||
Core basic EPS (USD) 1
|
6.12
|
6.29
|
|||||||||||||||
1 Earnings per share (EPS) is calculated on the amount of net income attributable to shareholders of Novartis AG.
|
2022 (USD millions unless indicated otherwise) |
IFRS results |
Amortization of intangible assets1 |
Impairments2 |
Acquisition or
divestment of businesses and related items3 |
Other items4 |
Core results |
|||||||
Gross profit
|
36 342
|
3 648
|
338
|
64
|
40 392
|
||||||||
Operating income
|
9 197
|
3 806
|
1 687
|
4
|
1 971
|
16 665
|
|||||||
Income before taxes
|
8 371
|
3 806
|
1 687
|
4
|
2 092
|
15 960
|
|||||||
Income taxes 5
|
-1 416
|
-2 608
|
|||||||||||
Net income
|
6 955
|
13 352
|
|||||||||||
Basic EPS (USD) 6
|
3.19
|
6.12
|
|||||||||||
The following are adjustments to arrive at core gross profit
|
|||||||||||||
Other revenues
|
1 283
|
-86
|
1 197
|
||||||||||
Cost of goods sold
|
-15 486
|
3 648
|
338
|
150
|
-11 350
|
||||||||
The following are adjustments to arrive at core operating income
|
|||||||||||||
Selling, general and administration
|
-14 253
|
63
|
-14 190
|
||||||||||
Research and development
|
-9 996
|
158
|
954
|
-204
|
-9 088
|
||||||||
Other income
|
805
|
-3
|
-4
|
-414
|
384
|
||||||||
Other expense
|
-3 701
|
398
|
8
|
2 462
|
-833
|
||||||||
The following are adjustments to arrive at core income before taxes
|
|||||||||||||
Other financial income and expense
|
20
|
121
|
141
|
||||||||||
1 Amortization of intangible assets: cost of goods sold includes the amortization of acquired rights to currently marketed products and other production-related intangible assets; research and development includes the amortization of acquired rights for technologies
|
|||||||||||||
2 Impairments: cost of goods sold, research and development and other expense include impairment charges related to intangible assets; other income and other expense include net impairment charges related to property, plant and equipment
|
|||||||||||||
3 Acquisition or divestment of businesses and related items, including restructuring and integration charges: other income and other expense include transitional service fee income and charges related to divestments; other income also includes adjustments to provisions; other expense includes stamp duties related to an acquisition
|
|||||||||||||
4 Other items: other revenues includes a net income from an outlicensing agreement; cost of goods sold, selling, general and administration, research and development, other income and other expense include restructuring income and charges related to the restructuring initiative to implement a new streamlined organizational model, the Sandoz strategic review, the Group-wide rationalization of manufacturing sites and other net restructuring charges and related items; cost of goods sold, selling, general and administration, research and development and other expense include adjustments to provisions and related items; cost of goods sold and research and development also include contingent consideration adjustments; other income and other expense include fair value adjustments and divestment gains and losses on financial assets and legal-related items; other income also includes gains from the divestment of products and property, curtailment gains and an adjustment to an environmental provision; other expense includes a reversal of an accrual and other costs and items; other financial income and expense includes the monetary loss on the restatement of non-monetary items for subsidiaries in hyperinflationary economies and a revaluation impact of a financial liability incurred through the Alcon distribution
|
|||||||||||||
5 Taxes on the adjustments between IFRS and core results take into account, for each individual item included in the adjustment, the tax rate that will finally be applicable to the item based on the jurisdiction where the adjustment will finally have a tax impact. Generally, this results in amortization and impairment of intangible assets and acquisition-related restructuring and integration items having a full tax impact. There is usually a tax impact on other items, although this is not always the case for items arising from legal settlements in certain jurisdictions. Adjustments related to income from associated companies are recorded net of any related tax effect. Due to these factors and the differing effective tax rates in the various jurisdictions, the tax on the total adjustments of USD 7.6 billion to arrive at the core results before tax amounts to USD 1.2 billion. The average tax rate on the adjustments is 15.7% since the full year core tax charge of 16.3% has been applied to the pre-tax income of the period.
|
|||||||||||||
6 Earnings per share (EPS) is calculated on the amount of net income attributable to shareholders of Novartis AG.
|
2021 (USD millions unless indicated otherwise) |
IFRS results |
Amortization of intangible assets1 |
Impairments2 |
Acquisition or
divestment of businesses and related items3 |
Other items4 |
Core results |
|||||||
Gross profit
|
37 010
|
3 655
|
18
|
414
|
41 097
|
||||||||
Operating income
|
11 689
|
3 764
|
653
|
41
|
441
|
16 588
|
|||||||
Income before taxes
|
26 137
|
3 974
|
653
|
-14 531
|
496
|
16 729
|
|||||||
Income taxes 5
|
-2 119
|
-2 635
|
|||||||||||
Net income
|
24 018
|
14 094
|
|||||||||||
Basic EPS (USD) 6
|
10.71
|
6.29
|
|||||||||||
The following are adjustments to arrive at core gross profit
|
|||||||||||||
Cost of goods sold
|
-15 867
|
3 655
|
18
|
414
|
-11 780
|
||||||||
The following are adjustments to arrive at core operating income
|
|||||||||||||
Selling, general and administration
|
-14 886
|
71
|
-14 815
|
||||||||||
Research and development
|
-9 540
|
109
|
369
|
21
|
-9 041
|
||||||||
Other income
|
1 852
|
-100
|
-66
|
-1 265
|
421
|
||||||||
Other expense
|
-2 747
|
366
|
107
|
1 200
|
-1 074
|
||||||||
The following are adjustments to arrive at core income before taxes
|
|||||||||||||
Income from associated companies
|
15 339
|
210
|
-14 556
|
993
|
|||||||||
Other financial income and expense
|
-80
|
-16
|
55
|
-41
|
|||||||||
1 Amortization of intangible assets: cost of goods sold includes the amortization of acquired rights to currently marketed products and other production-related intangible assets; research and development includes the amortization of acquired rights for technologies; income from associated companies includes USD 210 million for the Novartis share of the estimated Roche core items
|
|||||||||||||
2 Impairments: cost of goods sold and research and development include impairment charges related to intangible assets; other income and other expense include reversals of impairment charges and impairment charges related to property, plant and equipment
|
|||||||||||||
3 Acquisition or divestment of businesses and related items, including restructuring and integration charges: other income includes adjustments to portfolio transformation and Alcon spin-off accruals; other income and other expense include transitional service-fee income and expenses related to the Alcon distribution; other expense also includes adjustments to provisions; income from associated companies includes the gain related to the divestment of our investment in Roche; other financial income and expense includes other financial gains related to the divestment of our investment in Roche
|
|||||||||||||
4 Other items: cost of goods sold, research and development, other income and other expense include net restructuring and other charges related to the Group-wide rationalization of manufacturing sites; cost of goods sold, selling, general and administration, other income and other expense include other restructuring income and charges and related items; cost of goods sold, research and development, other income and other expense also include adjustments to contingent consideration; selling, general and administration, research and development, other income and other expense include adjustments to provisions; other income and other expense also include gains and losses from the divestment of products and financial assets and fair value adjustments on financial assets, adjustments to environmental provisions and legal-related items; other financial income and expense includes a charge related to the monetary loss due to hyperinflation in Argentina and Venezuela and a revaluation impact of a financial liability incurred through the Alcon distribution
|
|||||||||||||
5 Taxes on the adjustments between IFRS and core results take into account, for each individual item included in the adjustment, the tax rate that will finally be applicable to the item based on the jurisdiction where the adjustment will finally have a tax impact. Generally, this results in amortization and impairment of intangible assets and acquisition-related restructuring and integration items having a full tax impact. There is usually a tax impact on other items, although this is not always the case for items arising from legal settlements in certain jurisdictions. Adjustments related to income from associated companies are recorded net of any related tax effect. Due to these factors and the differing effective tax rates in the various jurisdictions, the tax on the total adjustments of USD 9.4 billion to arrive at the core results before tax amounts to USD 516 million. Excluding the gain on the divestment of our investment in Roche, the tax on the total adjustments of USD 5.2 billion to arrive at the core results before tax amounts to USD 516 million and the average tax rate on the adjustments was 10.0%.
|
|||||||||||||
6 Earnings per share (EPS) is calculated on the amount of net income attributable to shareholders of Novartis AG.
|
2022 (USD millions) |
IFRS results |
Amortization of intangible assets1 |
Impairments2 |
Acquisition or
divestment of businesses and related items3 |
Other items4 |
Core results |
|||||||
Gross profit
|
31 801
|
3 427
|
314
|
-29
|
35 513
|
||||||||
Operating income
|
8 786
|
3 585
|
1 662
|
8
|
1 196
|
15 237
|
|||||||
The following are adjustments to arrive at core gross profit
|
|||||||||||||
Other revenues
|
1 249
|
-86
|
1 163
|
||||||||||
Cost of goods sold
|
-11 569
|
3 427
|
314
|
57
|
-7 771
|
||||||||
The following are adjustments to arrive at core operating income
|
|||||||||||||
Selling, general and administration
|
-11 679
|
50
|
-11 629
|
||||||||||
Research and development
|
-9 172
|
158
|
953
|
-206
|
-8 267
|
||||||||
Other income
|
531
|
-1
|
-311
|
219
|
|||||||||
Other expense
|
-2 695
|
396
|
8
|
1 692
|
-599
|
||||||||
1 Amortization of intangible assets: cost of goods sold includes the amortization of acquired rights to currently marketed products and other production-related intangible assets; research and development includes the amortization of acquired rights for technologies
|
|||||||||||||
2 Impairments: cost of goods sold, research and development and other expense include impairment charges related to intangible assets; other income and other expense include net impairment charges related to property, plant and equipment
|
|||||||||||||
3 Acquisition or divestment of businesses and related items, including restructuring and integration charges: other expense includes stamp duties related to an acquisition and transitional service fee charges related to divestments
|
|||||||||||||
4 Other items: other revenues includes a net income from an outlicensing agreement; cost of goods sold, selling, general and administration, research and development, other income and other expense include restructuring income and charges related to the initiative to implement a new streamlined organizational model, the Group-wide rationalization of manufacturing sites and other net restructuring charges and related items; cost of goods sold and research and development also include contingent consideration adjustments and adjustments to provisions and related items; other income and other expense include fair value adjustments and divestment gains and losses on financial assets and legal-related items; other income also includes gains from the divestment of products and property, curtailment gains and an adjustment to an environmental provision; other expense includes a reversal of an accrual and other costs and items
|
2021 (USD millions) |
IFRS results |
Amortization of intangible assets1 |
Impairments2 |
Acquisition or
divestment of businesses and related items3 |
Other items4 |
Core results |
|||||||
Gross profit
|
32 218
|
3 419
|
344
|
35 981
|
|||||||||
Operating income
|
10 688
|
3 528
|
619
|
-1
|
381
|
15 215
|
|||||||
The following are adjustments to arrive at core gross profit
|
|||||||||||||
Cost of goods sold
|
-11 751
|
3 419
|
344
|
-7 988
|
|||||||||
The following are adjustments to arrive at core operating income
|
|||||||||||||
Selling, general and administration
|
-12 306
|
71
|
-12 235
|
||||||||||
Research and development
|
-8 641
|
109
|
360
|
22
|
-8 150
|
||||||||
Other income
|
1 149
|
-45
|
-2
|
-837
|
265
|
||||||||
Other expense
|
-1 732
|
304
|
1
|
781
|
-646
|
||||||||
1 Amortization of intangible assets: cost of goods sold includes the amortization of acquired rights to currently marketed products and other production-related intangible assets; research and development includes the amortization of acquired rights for technologies
|
|||||||||||||
2 Impairments: research and development includes impairment charges related to intangible assets; other income and other expense include reversals of impairment charges and impairment charges related to property, plant and equipment
|
|||||||||||||
3 Acquisition or divestment of businesses and related items, including restructuring and integration charges: other income and other expense include transitional service fee income and expenses related to the Alcon distribution
|
|||||||||||||
4 Other items: cost of goods sold, research and development, other income and other expense include net restructuring and other charges related to the Group-wide rationalization of manufacturing sites; cost of goods sold, selling, general and administration, other income and other expense include other restructuring income and charges and related items; cost of goods sold, research and development and other expense include adjustments to contingent consideration; selling, general and administration, research and development and other expense include adjustments to provisions; other income and other expense include gains and losses from the divestment of products and financial assets and fair value adjustments on financial assets; other expense also includes legal-related items and adjustments to environmental provisions
|
2022 (USD millions) |
IFRS results |
Amortization of intangible assets1 |
Impairments2 |
Acquisition or
divestment of businesses and related items |
Other items3 |
Core results |
|||||||
Gross profit
|
4 504
|
221
|
24
|
93
|
4 842
|
||||||||
Operating income
|
1 448
|
221
|
23
|
211
|
1 903
|
||||||||
The following are adjustments to arrive at core gross profit
|
|||||||||||||
Cost of goods sold
|
-4 978
|
221
|
24
|
93
|
-4 640
|
||||||||
The following are adjustments to arrive at core operating income
|
|||||||||||||
Selling, general and administration
|
-2 062
|
9
|
-2 053
|
||||||||||
Research and development
|
-824
|
1
|
2
|
-821
|
|||||||||
Other income
|
103
|
-2
|
-14
|
87
|
|||||||||
Other expense
|
-273
|
121
|
-152
|
||||||||||
1 Amortization of intangible assets: cost of goods sold includes the amortization of acquired rights to currently marketed products and other production-related intangible assets
|
|||||||||||||
2 Impairments: cost of goods sold and research and development include impairment charges related to intangible assets; other income includes a reversal of an impairment charge related to property, plant and equipment
|
|||||||||||||
3 Other items: cost of goods sold, selling, general and administration, research and development, other income and other expense include charges related to the Sandoz strategic review, the Group-wide rationalization of manufacturing sites and other net restructuring charges and related items; other expense also includes legal-related items; cost of goods sold and selling, general and administration include adjustments to provisions and related items
|
2021 (USD millions) |
IFRS results |
Amortization of intangible assets1 |
Impairments2 |
Acquisition or
divestment of businesses and related items |
Other items3 |
Core results |
|||||||
Gross profit
|
4 725
|
236
|
18
|
70
|
5 049
|
||||||||
Operating income
|
1 600
|
236
|
34
|
194
|
2 064
|
||||||||
The following are adjustments to arrive at core gross profit
|
|||||||||||||
Cost of goods sold
|
-5 147
|
236
|
18
|
70
|
-4 823
|
||||||||
The following are adjustments to arrive at core operating income
|
|||||||||||||
Research and development
|
-899
|
9
|
-1
|
-891
|
|||||||||
Other income
|
233
|
-55
|
-51
|
127
|
|||||||||
Other expense
|
-397
|
62
|
176
|
-159
|
|||||||||
1 Amortization of intangible assets: cost of goods sold includes the amortization of acquired rights to currently marketed products and other production-related intangible assets
|
|||||||||||||
2 Impairments: cost of goods sold and research and development include impairment charges related to intangible assets; other income and other expense include reversals of impairment charges and impairment charges related to property, plant and equipment
|
|||||||||||||
3 Other items: cost of goods sold, other income and other expense include net restructuring and other charges related to the Group-wide rationalization of manufacturing sites and other restructuring income and charges and related items; research and development includes adjustments to provisions; other income includes net gains from the divestment of a product; other income and other expense include legal-related items
|
2022 (USD millions) |
IFRS results |
Amortization of intangible assets |
Impairments1 |
Acquisition or
divestment of businesses and related items2 |
Other items3 |
Core results |
|||||||
Gross profit
|
37
|
37
|
|||||||||||
Operating loss
|
-1 037
|
2
|
-4
|
564
|
-475
|
||||||||
The following are adjustments to arrive at core operating loss
|
|||||||||||||
Selling, general and administration
|
-512
|
4
|
-508
|
||||||||||
Other income
|
171
|
-4
|
-89
|
78
|
|||||||||
Other expense
|
-733
|
2
|
649
|
-82
|
|||||||||
1 Impairments: other expense includes impairment charges related to intangible assets
|
|||||||||||||
2 Acquisition or divestment of businesses and related items, including restructuring and integration charges: other income includes adjustments to provisions and transitional service fee income related to divestments
|
|||||||||||||
3 Other items: selling, general and administration, other income and other expense include restructuring income and charges related to the initiative to implement a new streamlined organizational model, the Sandoz strategic review and other net restructuring charges and related items; other income and other expense also include fair value adjustments and divestment gains and losses on financial assets; other income also includes a curtailment gain
|
2021 (USD millions) |
IFRS results |
Amortization of intangible assets |
Impairments |
Acquisition or
divestment of businesses and related items1 |
Other items2 |
Core results |
|||||||
Gross profit
|
67
|
67
|
|||||||||||
Operating loss
|
-599
|
42
|
-134
|
-691
|
|||||||||
The following are adjustments to arrive at core operating loss
|
|||||||||||||
Other income
|
470
|
-64
|
-377
|
29
|
|||||||||
Other expense
|
-618
|
106
|
243
|
-269
|
|||||||||
1 Acquisition or divestment of businesses and related items, including restructuring and integration charges: other income includes adjustments to portfolio transformation and Alcon spin-off accruals; other income and other expense include transitional service fee income and expenses related to the Alcon distribution; other expense also includes adjustments to provisions
|
|||||||||||||
2 Other items: other income includes an adjustment to a contingent consideration receivable; other income and other expense include fair value adjustments and divestment gains and losses on financial assets, adjustments to environmental provisions and restructuring income and charges and related items
|
2021
|
|||||||||
(USD millions unless indicated otherwise) |
Results as published |
Our Roche investment impacts excluding the divestment gain |
Gain on divestment of our investment in Roche |
Results
excluding impacts from the divestment of our Roche investment |
|||||
Operating income
|
11 689
|
11 689
|
|||||||
Income from associated companies
|
15 339
|
-785
|
-14 556
|
-2
|
|||||
Interest expense and other financial income and expense
|
-891
|
-16
|
-907
|
||||||
Income before tax
|
26 137
|
-785
|
-14 572
|
10 780
|
|||||
Income taxes
|
-2 119
|
-2 119
|
|||||||
Net income
|
24 018
|
-785
|
-14 572
|
8 661
|
|||||
Basic earnings per share (USD)
|
10.71
|
-0.35
|
-6.50
|
3.86
|
|||||
Effective tax rate 1
|
8.1%
|
19.7%
|
|||||||
|
|||||||||
Core operating income
|
16 588
|
16 588
|
|||||||
Core income from associated companies
|
993
|
-995
|
-2
|
||||||
Core interest expense and core other financial income and expense
|
-852
|
-852
|
|||||||
Core income before tax
|
16 729
|
-995
|
15 734
|
||||||
Core income taxes
|
-2 635
|
-2 635
|
|||||||
Core net income
|
14 094
|
-995
|
13 099
|
||||||
Core basic earnings per share (USD)
|
6.29
|
-0.45
|
5.84
|
||||||
Core effective tax rate 2
|
15.8%
|
16.7%
|
|||||||
|
|||||||||
Free cash flow 3
|
13 282
|
-522
|
12 760
|
||||||
1 Effective tax rate is calculated as Income taxes divided by Income before tax.
|
|||||||||
2 Core effective tax rate is calculated as Core income taxes divided by Core income before tax.
|
|||||||||
3 The free cash flow impact represents the dividend received in Q1 2021 from Roche in relation to the distribution of its 2020 net income.
|
2021
|
|||||||||||
(USD millions) |
Free cash flow as published |
Dividends
received from Roche in relation to the distribution of its 2020 net income1 |
Free cash flow excluding dividends received from Roche |
||||||||
Operating income
|
11 689
|
11 689
|
|||||||||
Adjustments for non-cash items
|
7 030
|
7 030
|
|||||||||
Operating income adjusted for non-cash items
|
18 719
|
18 719
|
|||||||||
Dividends received from associated companies and others
|
525
|
-522
|
3
|
||||||||
Interest and other financial payments, net
|
-953
|
-953
|
|||||||||
Income taxes paid
|
-2 342
|
-2 342
|
|||||||||
Other operating cash flow items, net
|
-878
|
-878
|
|||||||||
Net cash flows from operating activities
|
15 071
|
-522
|
14 549
|
||||||||
Net purchases of property, plant and equipment, intangible assets, financial assets and other non-current assets
|
-1 789
|
-1 789
|
|||||||||
Free cash flow
|
13 282
|
-522
|
12 760
|
||||||||
1 In 2021, the dividend received from Roche in relation to the distribution of its 2020 net income was received in Q1 2021.
|
In USD
|
In constant currencies
|
||||||||||||
% change as published 2022 |
% change
excluding impacts from the divestment of our Roche investment 2022 |
Percentage point impact 2022 |
% change as published 2022 |
% change
excluding impacts from the divestment of our Roche investment 2022 |
Percentage point impact 2022 |
||||||||
Net income
|
-71
|
-20
|
-51
|
-67
|
-9
|
-58
|
|||||||
Basic earnings per share (USD)
|
-70
|
-17
|
-53
|
-66
|
-7
|
-59
|
|||||||
Free cash flow
|
-10
|
-6
|
-4
|
||||||||||
Core net income
|
-5
|
2
|
-7
|
3
|
11
|
-8
|
|||||||
Core basic earnings per share (USD)
|
-3
|
5
|
-8
|
6
|
14
|
-8
|
|||||||
5.B Liquidity and capital resources
(USD millions)
|
2022
|
2021
|
|||
Net cash flows from operating activities
|
14 236
|
15 071
|
|||
Net cash flows from investing activities
|
1 468
|
4 208
|
|||
Net cash flows used in financing activities
|
-20 562
|
-16 264
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
-32
|
-266
|
|||
Net change in cash and cash equivalents
|
-4 890
|
2 749
|
|||
Change in marketable securities, commodities, time deposits and derivative financial instruments
|
-4 509
|
14 017
|
|||
Change in current and non-current financial debts and derivative financial instruments
|
3 022
|
6 847
|
|||
Change in net debt
|
-6 377
|
23 613
|
|||
Net debt at January 1
|
-868
|
-24 481
|
|||
Net debt at December 31
|
-7 245
|
-868
|
|||
2022
|
2021
|
||||||||||||
(USD millions) |
IFRS
cash flow |
Adjustments |
Free
cash flow |
IFRS
cash flow |
Adjustments |
Free
cash flow |
|||||||
Net cash flows from operating activities
|
14 236
|
14 236
|
15 071
|
15 071
|
|||||||||
|
|||||||||||||
Net cash flows from/(used in) investing activities 1
|
1 468
|
-3 759
|
-2 291
|
4 208
|
-5 997
|
-1 789
|
|||||||
|
|||||||||||||
Net cash flows used in financing activities 2
|
-20 562
|
20 562
|
0
|
-16 264
|
16 264
|
0
|
|||||||
|
|||||||||||||
Free cash flow
|
11 945
|
13 282
|
|||||||||||
1 Excluded from the free cash flow are cash flows from investing activities associated with acquisitions and divestments of businesses and of interest in associated companies, purchases and sales of marketable securities, commodities and time deposits.
|
|||||||||||||
2 Net cash flows used in financing activities are excluded from the free cash flow.
|
|||||||||||||
|
(USD millions)
|
2022
|
2021
|
|||
Operating income
|
9 197
|
11 689
|
|||
Adjustments for non-cash items
|
|||||
Depreciation, amortization and impairments
|
7 441
|
6 075
|
|||
Change in provisions and other non-current liabilities
|
1 403
|
896
|
|||
Other
|
460
|
59
|
|||
Operating income adjusted for non-cash items
|
18 501
|
18 719
|
|||
Dividends received from associated companies and others
|
1
|
525
|
|||
Interest and other financial receipts
|
325
|
13
|
|||
Interest and other financial payments
|
-728
|
-966
|
|||
Income taxes paid
|
-1 975
|
-2 342
|
|||
Payments out of provisions and other net cash movements in non-current liabilities
|
-885
|
-1 119
|
|||
Change in inventories and trade receivables less trade payables
|
-1 467
|
-329
|
|||
Change in other net current assets and other operating cash flow items
|
464
|
570
|
|||
Net cash flows from operating activities
|
14 236
|
15 071
|
|||
Purchases of property, plant and equipment
|
-1 198
|
-1 378
|
|||
Proceeds from sale of property, plant and equipment
|
167
|
240
|
|||
Purchases of intangible assets
|
-1 473
|
-1 593
|
|||
Proceeds from sale of intangible assets
|
202
|
748
|
|||
Purchases of financial assets
|
-121
|
-191
|
|||
Proceeds from sale of financial assets
|
133
|
442
|
|||
Purchases of other non-current assets
|
-1
|
-61
|
|||
Proceeds from sale of other non-current assets
|
4
|
||||
Free cash flow
|
11 945
|
13 282
|
|||
(USD millions)
|
Dec 31, 2022
|
Dec 31, 2021
|
|||
Assets
|
|||||
Property, plant and equipment
|
10 764
|
11 545
|
|||
Right-of-use assets
|
1 431
|
1 561
|
|||
Goodwill
|
29 301
|
29 595
|
|||
Intangible assets other than goodwill
|
31 644
|
34 182
|
|||
Investments in associated companies
|
143
|
205
|
|||
Deferred tax assets
|
3 739
|
3 743
|
|||
Financial assets and other non-current assets
|
3 521
|
5 246
|
|||
Total non-current assets
|
80 543
|
86 077
|
|||
Inventories
|
7 175
|
6 666
|
|||
Trade receivables
|
8 066
|
8 005
|
|||
Other current assets and income tax receivables
|
2 739
|
2 718
|
|||
Marketable securities, commodities, time deposits and derivative financial instruments
|
11 413
|
15 922
|
|||
Cash and cash equivalents
|
7 517
|
12 407
|
|||
Total current assets
|
36 910
|
45 718
|
|||
Total assets
|
117 453
|
131 795
|
|||
Equity and liabilities
|
|||||
Total equity
|
59 423
|
67 822
|
|||
Liabilities
|
|||||
Financial debts
|
20 244
|
22 902
|
|||
Lease liabilities
|
1 538
|
1 621
|
|||
Deferred tax liabilities
|
2 686
|
3 070
|
|||
Provisions and other non-current liabilities
|
4 906
|
6 172
|
|||
Total non-current liabilities
|
29 374
|
33 765
|
|||
Trade payables
|
5 146
|
5 553
|
|||
Financial debts and derivative financial instruments
|
5 931
|
6 295
|
|||
Lease liabilities
|
251
|
275
|
|||
Provisions and other current liabilities and current income tax liabilities
|
17 328
|
18 085
|
|||
Total current liabilities
|
28 656
|
30 208
|
|||
Total liabilities
|
58 030
|
63 973
|
|||
Total equity and liabilities
|
117 453
|
131 795
|
|||
Number of outstanding shares (in millions)
|
Equity attributable to Novartis AG shareholders
|
||||||||
2022 |
2021 |
2022
USD millions |
2021
USD millions |
||||||
Balance at beginning of year
|
2 234.9
|
2 256.8
|
67 655
|
56 598
|
|||||
Shares acquired to be canceled
|
-126.2
|
-30.7
|
-10 787
|
-2 775
|
|||||
Other share purchases
|
-1.4
|
-1.5
|
-123
|
-145
|
|||||
Exercise of options and employee transactions
|
1.9
|
0.6
|
88
|
39
|
|||||
Equity-based compensation
|
10.4
|
9.6
|
854
|
745
|
|||||
Shares delivered to Alcon employees as a result of the Alcon spin-off
|
0.0
|
0.1
|
5
|
17
|
|||||
Taxes on treasury share transactions
|
14
|
1
|
|||||||
Decrease/(increase) of treasury share repurchase obligation under a share buyback trading plan
|
2 809
|
-1 040
|
|||||||
Transaction costs, net of taxes
|
12
|
||||||||
Dividends
|
-7 506
|
-7 368
|
|||||||
Net income of the year attributable to shareholders of Novartis AG
|
6 955
|
24 021
|
|||||||
Other comprehensive income attributable to shareholders of Novartis AG
|
-839
|
-2 493
|
|||||||
Impact of change in ownership of consolidated entities
|
-5
|
||||||||
Other movements 1
|
217
|
48
|
|||||||
Balance at end of year
|
2 119.6
|
2 234.9
|
59 342
|
67 655
|
|||||
1 Impact of hyperinflationary economies (see “Item 18. Financial Statements—Note 1. Significant accounting policies").
|
2022
|
2021
|
||||||||
Currency |
Net sales % |
Operating
expenses %1 |
Net sales % |
Operating
expenses %1 |
|||||
US dollar (USD)
|
37
|
36
|
35
|
35
|
|||||
Euro (EUR)
|
27
|
24
|
29
|
26
|
|||||
Swiss franc (CHF)
|
2
|
20
|
2
|
18
|
|||||
Chinese yuan (CNY)
|
6
|
4
|
6
|
3
|
|||||
Japanese yen (JPY)
|
4
|
2
|
5
|
3
|
|||||
Canadian dollar (CAD)
|
3
|
1
|
3
|
2
|
|||||
British pound (GBP)
|
2
|
2
|
3
|
2
|
|||||
Russian ruble (RUB)
|
2
|
1
|
2
|
1
|
|||||
Brazilian real (BRL)
|
2
|
1
|
1
|
1
|
|||||
Australian dollar (AUD)
|
1
|
1
|
1
|
1
|
|||||
Other currencies
|
14
|
8
|
13
|
8
|
|||||
1 Operating expenses include cost of goods sold; selling, general and administration; research and development; other income and other expense.
|
Average for year
|
Year-end
|
||||||||||||
USD per unit
|
2022
|
2021
|
Change in %
|
2022
|
2021
|
Change in %
|
|||||||
Australian dollar (AUD)
|
0.695
|
0.752
|
-8
|
0.678
|
0.726
|
-7
|
|||||||
Brazilian real (BRL)
|
0.194
|
0.186
|
4
|
0.189
|
0.180
|
5
|
|||||||
Canadian dollar (CAD)
|
0.769
|
0.798
|
-4
|
0.738
|
0.785
|
-6
|
|||||||
Swiss franc (CHF)
|
1.048
|
1.094
|
-4
|
1.081
|
1.093
|
-1
|
|||||||
Chinese yuan (CNY)
|
0.149
|
0.155
|
-4
|
0.144
|
0.157
|
-8
|
|||||||
Euro (EUR)
|
1.054
|
1.183
|
-11
|
1.065
|
1.131
|
-6
|
|||||||
British pound (GBP)
|
1.237
|
1.376
|
-10
|
1.207
|
1.351
|
-11
|
|||||||
Japanese yen (JPY (100))
|
0.766
|
0.912
|
-16
|
0.757
|
0.868
|
-13
|
|||||||
Russian ruble (RUB (100))
|
1.481
|
1.357
|
9
|
1.380
|
1.336
|
3
|
|||||||
Change in USD % 2022 |
Change in
constant currencies % 2022 |
Percentage
point currency impact 2022 |
Change in USD % 2021 |
Change in
constant currencies % 2021 |
Percentage
point currency impact 2021 |
||||||||
Total Group
|
|||||||||||||
Net sales to third parties
|
-2
|
4
|
-6
|
6
|
4
|
2
|
|||||||
Operating income
|
-21
|
-13
|
-8
|
15
|
13
|
2
|
|||||||
Net income
|
-71
|
-67
|
-4
|
198
|
195
|
3
|
|||||||
Basic earnings per share (USD)
|
-70
|
-66
|
-4
|
202
|
200
|
2
|
|||||||
Core operating income
|
0
|
8
|
-8
|
8
|
6
|
2
|
|||||||
Core net income
|
-5
|
3
|
-8
|
7
|
5
|
2
|
|||||||
Core basic earnings per share (USD)
|
-3
|
6
|
-9
|
9
|
7
|
2
|
|||||||
|
|||||||||||||
Innovative Medicines
|
|||||||||||||
Net sales to third parties
|
-2
|
4
|
-6
|
8
|
6
|
2
|
|||||||
Operating income
|
-18
|
-9
|
-9
|
17
|
15
|
2
|
|||||||
Core operating income
|
0
|
8
|
-8
|
12
|
10
|
2
|
|||||||
|
|||||||||||||
Sandoz
|
|||||||||||||
Net sales to third parties
|
-4
|
4
|
-8
|
0
|
-2
|
2
|
|||||||
Operating income
|
-10
|
-2
|
-8
|
53
|
48
|
5
|
|||||||
Core operating income
|
-8
|
-1
|
-7
|
-12
|
-14
|
2
|
|||||||
|
|||||||||||||
Corporate
|
|||||||||||||
Operating loss
|
-73
|
-84
|
11
|
nm
|
nm
|
nm
|
|||||||
Core operating loss
|
31
|
28
|
3
|
-23
|
-20
|
-3
|
|||||||
|
|||||||||||||
nm = not meaningful
|
(USD millions)
|
2022
|
2021
|
|||
Non-current financial debts
|
-20 244
|
-22 902
|
|||
Current financial debts and derivative financial instruments
|
-5 931
|
-6 295
|
|||
Total financial debts
|
-26 175
|
-29 197
|
|||
Less liquidity
|
|||||
Cash and cash equivalents
|
7 517
|
12 407
|
|||
Marketable securities, commodities, time deposits and derivative financial instruments
|
11 413
|
15 922
|
|||
Total liquidity
|
18 930
|
28 329
|
|||
Net debt at December 31 1
|
-7 245
|
-868
|
|||
1 For further information about the net debt measure, which is a non-IFRS measure, see “—Item 5.A Operating results—Non-IFRS measures as defined by Novartis—Net debt.”
|
Liquidity in % 20221 |
Liquidity in % 20211 |
Financial
debt in % 20222 |
Financial
debt in % 20212 |
||||||
USD
|
85
|
92
|
62
|
57
|
|||||
CHF
|
4
|
4
|
6
|
12
|
|||||
EUR
|
7
|
2
|
29
|
27
|
|||||
JPY
|
1
|
1
|
|||||||
Other
|
4
|
2
|
2
|
3
|
|||||
|
100
|
100
|
100
|
100
|
|||||
1 Liquidity includes cash and cash equivalents and marketable securities, including debt securities, commodities and time deposits.
|
|||||||||
2 Financial debt includes non-current and current financial debt.
|
Payments due by period
|
|||||||||||
(USD millions) |
Total |
Less than
1 year |
2–3 years |
4–5 years |
After
5 years |
||||||
Non-current financial debt, including current portion
|
22 485
|
2 241
|
5 428
|
3 547
|
11 269
|
||||||
Interest on non-current financial debt, including current portion
|
5 532
|
476
|
821
|
611
|
3 624
|
||||||
Lease liabilities, non-current and current portion
|
1 789
|
251
|
357
|
259
|
922
|
||||||
Interest on lease liabilities, non-current and current portion
|
1 416
|
46
|
76
|
67
|
1 227
|
||||||
Commitments for leases not yet commenced
|
83
|
10
|
14
|
15
|
44
|
||||||
Unfunded pensions and other post-employment benefit plans
|
1 281
|
115
|
215
|
204
|
747
|
||||||
Research and development potential milestone commitments
|
5 814
|
420
|
1 256
|
969
|
3 169
|
||||||
Contingent consideration liabilities
|
835
|
131
|
339
|
98
|
267
|
||||||
Property, plant and equipment purchase commitments
|
549
|
441
|
93
|
15
|
|||||||
Total contractual cash obligations
|
39 784
|
4 131
|
8 599
|
5 785
|
21 269
|
||||||
5.C Research and development, patents and licenses
5.D Trend information
5.E Critical accounting estimates
Item 6. Directors, Senior Management and Employees
6.A Directors and senior management
6.B Compensation
Compensation at a glance
CHF 000s |
2022
total compensation1 |
||
Board Chair
|
3 804
|
||
Other members of the Board
|
4 703
|
||
Total
|
8 506
|
||
1 Includes an amount of CHF 29 250 for mandatory employer contributions for all Board members paid by Novartis to Swiss governmental social security systems. This amount is out of total employer contributions of CHF 453 083 and provides a right to the maximum future insured government pension benefit for the Board members.
|
|||
|
CHF 000s |
AGM 2023-2024
annual fee |
||
Board Chair
|
3 800
|
||
Board membership
|
280
|
||
Vice-Chair
|
50
|
||
Lead Independent Director
|
20
|
||
Chair of the Audit and Compliance Committee
|
130
|
||
Chair of the Compensation Committee
|
90
|
||
Chair of the following committees:
• Governance, Sustainability and Nomination Committee • Science & Technology Committee • Risk Committee |
70 |
||
Membership of the Audit and Compliance Committee
|
70
|
||
Membership of the following committees:
• Compensation Committee • Governance, Sustainability and Nomination Committee • Science & Technology Committee • Risk Committee |
40 |
||
|
Executive Committee compensation philosophy and principles
2022 Executive Committee compensation
Name
|
Date of appointment
|
Currency
|
Cash payments
|
Equity awards
|
Total value at grant
|
|||
Shreeram Aradhye, President, Global Drug Development and Chief Medical Officer
|
May 16, 2022
|
CHF
|
No cash buyout
|
5 708 RSUs, vesting over the period 2023-2026
|
491 915
|
|||
Aharon Gal, Chief Strategy & Growth Officer
|
July 18, 2022
|
CHF
|
818 202
|
43 253 RSUs, vesting over the period 2022-2023
|
4 353 702
|
|||
Fiona Marshall, President, Novartis Institutes for BioMedical Research
|
November 1, 2022
|
USD
|
522 000 to be paid out in March 2023
|
31 861 RSUs and 9 649 PSUs, vesting over the period 2023-2026
|
3 886 801
|
|||
2022 annual base salary
|
2022 pension benefits1
|
2022 Annual Incentive
|
Long-Term Incentives LTPP 2020 - 2022 cycle
|
Other 2022 compensation
|
|||||||||||||
Currency |
Cash (amount) |
Amount |
Cash |
Equity2 |
Equity (value at vesting date)3 |
Amount4,5 |
Total realized
compensation (incl. share price movement)6 |
||||||||||
Executive Committee members
|
|||||||||||||||||
Vasant Narasimhan (CEO)
|
CHF
|
1 786 500
|
174 488
|
1 342 125
|
1 342 196
|
3 307 422
|
499 445
|
8 452 176
|
|||||||||
Aggregate realized compensation of the other 15 Executive Committee members, including the members who stepped down during the financial year 2022 7,8
|
CHF
|
9 122 792
|
1 978 304
|
4 211 841
|
5 918 318
|
10 025 047
|
9 716 294
|
40 972 595
|
|||||||||
Total
|
CHF
|
10 909 292
|
2 152 792
|
5 553 966
|
7 260 514
|
13 332 469
|
10 215 739
|
49 424 771
|
|||||||||
See 2021 realized compensation for the CEO and other Executive Committee members for 2021 comparative figures.
|
|||||||||||||||||
1 Includes mandatory employer contributions of CHF 4 560 for the CEO and CHF 67 148 for the other current Executive Committee members paid by Novartis to governmental social security systems. This amount is out of total employer contributions of CHF 3 937 537 paid in 2022 for all Executive Committee members, and provides a right to the maximum future insured government pension benefit.
|
|||||||||||||||||
2 The portion of the Annual Incentive delivered in equity is rounded up to the nearest share, based on the closing share price on the grant date (January 25, 2023) of CHF 85.30 per Novartis share and USD 92.81 per ADR.
|
|||||||||||||||||
3 The amounts represent the underlying share value of the 97 361 LTPP PSUs vesting on January 25, 2023, to the CEO and other Executive Committee members for the 2020-2022 performance cycle and dividend equivalents for the three-year cycle (for details, see ''—LTPP performance outcomes''). The taxable value is determined using the closing share price on the day the Novartis Board of Directors approved the final LTPP performance factor (i.e., January 25, 2023) of CHF 85.30 per Novartis share and USD 92.81 per ADR. Robert Kowalski was promoted to the Executive Committee during the course of the 2021 performance period and Victor Bulto during the course of the 2022 performance period, and as such, the information disclosed reflects their pro-rata LTPP 2020-2022 payout attributable to the period in which they were members of the Executive Committee. Shreeram Aradhye rejoined Novartis and Karen Hale, Aharon Gal and Fiona Marshall joined Novartis after the 2020 LTI awards were made and hence did not receive an LTPP award for the 2020-2022 performance period.
|
|||||||||||||||||
4 Includes any other perquisites, benefits in kind, and international assignment benefits as per the global mobility policy (e.g., housing, international health insurance, children's school fees, tax equalization). The 2022 tax payments were CHF 221 633 for Richard Saynor, as well as CHF 533 927 for Victor Bulto, CHF 127 980 for Robert Kowalski, CHF 109 966 for Aharon Gal, and CHF 417 826 for Vas Narasimhan.
|
|||||||||||||||||
5 Includes 696 vested RSUs and 2 765 PSUs (for a total value of CHF 268 158), which vested on March 13, 2022, to John Tsai in lieu of the LTI that he forfeited when leaving his previous employer. Also includes 2 348 vested RSUs and 1 586 vested PSUs (for a total value of CHF 313 815), which vested on February 13, 2022, to Richard Saynor in lieu of the LTI that he forfeited when leaving his previous employer, and 3 675 vested PSUs (CHF 287 238) on January 18, 2022, to Klaus Moosmayer in lieu of the LTI he forfeited when leaving his previous employer as well as 15 448 RSUs (CHF 1 292 225), which vested on December 1, 2022, to Aharon Gal in lieu of the LTI that he forfeited when leaving his previous employer.
|
|||||||||||||||||
6 All amounts are before deduction of the social security contribution and income tax due from the Executive Committee member.
|
|||||||||||||||||
7 Includes compensation of the following members who stepped down from the ECN: Richard Saynor, Sandoz CEO designate, James Bradner, former President NIBR, Susanne Schaffert, former CEO Oncology, John Tsai, former Global Head of Drug Development and Chiel Medical Officer and Robert Weltevreden, former Head of Customer and Technology Solutions, including the vesting of their Long-Term Incentives for 2020-2022 performance cycle, as per the plan rules. The compensation and benefits elements related to the period after the step-down dates are reported under the 'other 2022 compensation' column. See “—2022 Executive Committee member departures" for details.
|
|||||||||||||||||
8 Amounts for Executive Committee members paid in USD were converted at a rate of USD 1.00 = CHF 0.9548, which is the same average exchange rate used in the Group's 2022 consolidated financial statements (a similar rule applies to payments made in other currencies during the year).
|
PSUs at grant
|
Shares delivered at vesting
|
||||||||||||||||
PSUs (target number) |
PSUs (target value at grant date) (CHF)2 |
Payout factor for ECN LTPP (% of target) |
Performance shares delivered at vesting (number) |
Performance shares delivered at vesting (value at vesting date) (CHF)3 |
Dividend equivalent shares delivered at vesting (number)4 |
Dividend
equivalent shares delivered at vesting (value at vesting date) (CHF) |
Total shares
delivered at vesting (value at vesting date) (CHF) |
||||||||||
Executive Committee members 1
|
|||||||||||||||||
Vasant Narasimhan
|
61 498
|
5 712 549
|
57%
|
35 054
|
2 990 106
|
3 720
|
317 316
|
3 307 422
|
|||||||||
Other 15 Executive Committee members, including the members who stepped down during the financial year 2022 5
|
183 733
|
17 005 806
|
57%
|
105 530
|
9 058 150
|
11 156
|
966 897
|
10 025 047
|
|||||||||
Total
|
245 231
|
22 718 356
|
140 584
|
12 048 256
|
14 876
|
1 284 213
|
13 332 469
|
||||||||||
1 Robert Kowalski and Victor Bulto joined the Executive Committee during the course of the 2020-2022 performance period. As such, the information disclosed reflects their pro-rata LTPP 2020-2022 attributable to the period in which they were members of the Executive Committee. Karen Hale, Aharon Gal, Fiona Marshall and Shreeram Aradhye joined Novartis after the 2020-2022 LTPP awards were made and hence did not receive an LTPP award for this performance period.
|
|||||||||||||||||
2 The shown amounts represent the underlying share value of the target number of PSUs granted to each Executive Committee member for the 2020-2022 performance period, based on the closing share price on the grant date (January 21, 2020) of CHF 92.89 per Novartis share and USD 95.19 per ADR.
|
|||||||||||||||||
3 The shown amounts represent the underlying share value of the number of PSUs vested for the 2020-2022 performance period, based on the closing share price on the day the Novartis Board of Directors approved the final LTPP performance payout factor (i.e., January 25, 2023) of CHF 85.30 per Novartis share and USD 92.81 per ADR.
|
|||||||||||||||||
4 Dividend equivalent shares are calculated on the dividend each member of the Executive Committee would have received, based on the actual number of shares delivered at the end of the 2020-2022 performance period. At vesting, the dividend equivalents are credited in shares or ADRs.
|
|||||||||||||||||
5 Includes the LTPP vesting for Richard Saynor, Sandoz CEO Designate, James Bradner, former President NIBR, Susanne Schaffert, former CEO Oncology, John Tsai, former Global Head of Drug Development and Chiel Medical Officer and Robert Weltevreden, former Head of Customer and Technology Solutions for the 2020-2022 performance cycle, as per the plan rules.
|
2021 annual base salary
|
2021 pension benefits1
|
2021 Annual Incentive
|
Long-Term Incentives
|
Other 2021 compensation
|
|||||||||||||
LTPP 2019-2021 cycle
|
|||||||||||||||||
Currency |
Cash (amount) |
Amount |
Cash |
Equity2 |
Equity (value at vesting date)3 |
Amount2,4,5 |
Total realized
compensation (incl. share price movement)6 |
||||||||||
Executive Committee members
|
|||||||||||||||||
Vasant Narasimhan (CEO)
|
CHF
|
1 769 200
|
176 731
|
1 328 625
|
1 328 642
|
6 356 128
|
265 401
|
11 224 727
|
|||||||||
Aggregate realized compensation of the other 14 Executive Committee members, including the members who stepped down during the financial year 2021 7,8
|
CHF
|
8 983 841
|
2 065 561
|
4 174 006
|
5 400 015
|
18 770 029
|
6 021 712
|
45 415 164
|
|||||||||
Total
|
CHF
|
10 753 041
|
2 242 292
|
5 502 631
|
6 728 657
|
25 126 157
|
6 287 113
|
56 639 891
|
|||||||||
1 Includes mandatory employer contributions of CHF 5 498 for the CEO and CHF 53 693 for the other Executive Committee members paid by Novartis to governmental social security systems. This amount is out of total employer contributions of CHF 4 966 397 paid in 2021 for all Executive Committee members, and provides a right to the maximum future insured government pension benefit.
|
|||||||||||||||||
2 The portion of the Annual Incentive delivered in equity is rounded up to the nearest share, based on the closing share price on the grant date (January 26, 2022) of CHF 78.16 per Novartis share and USD 84.24 per ADR.
|
|||||||||||||||||
3 The amounts represent the underlying share value of the 296 741 LTPP PSUs vested on January 22, 2022, to the CEO and other Executive Committee members for the 2019-2021 performance cycle, inclusive of earned Alcon Keep Whole awards and dividend equivalents for the three-year cycle (for details, see ''—LTPP performance outcomes''). The taxable value is determined using the closing share price on the day the Novartis Board of Directors approved the final LTPP performance factor (i.e., January 26, 2022) of CHF 78.16 per Novartis share and USD 84.24 per ADR. Marie-France Tschudin and Robert Kowalski were promoted to the Executive Committee during the course of the 2019-2021 performance period, and as such, the information disclosed reflects their pro-rata LTPP 2019-2021 payout attributable to the period in which they were members of the Executive Committee. Richard Saynor and Karen Hale joined Novartis after the 2019 LTI awards were made and hence did not receive an LTPP award for the 2019-2021 performance period.
|
|||||||||||||||||
4 Includes any other perquisites, benefits in kind, and international assignment benefits as per the global mobility policy (e.g., housing, international health insurance, children's school fees, tax equalization). The 2021 tax payments were CHF 127 009 for Mr. Saynor, as well as CHF 822 808 for Susanne Schaffert, and CHF 156 788 for Vas Narasimhan.
|
|||||||||||||||||
5 Includes 6 128 vested RSUs and 3 546 PSUs (for a total value of CHF 782 649), which vested partially on March 13, 2021, and partially on July 28, 2021, to John Tsai in lieu of the LTI that he forfeited when leaving his previous employer. Also includes 2 584 vested RSUs and 2 043 vested PSUs (for a total value of CHF 379 414), which vested on February 14, 2021, to Mr. Saynor in lieu of the LTI that he forfeited when leaving his previous employer, and 4 313 vested PSUs (CHF 370 961) on January 18, 2021, to Klaus Moosmayer in lieu of the LTI he forfeited when leaving his previous employer.
|
|||||||||||||||||
6 All amounts are before deduction of the social security contribution and income tax due from the Executive Committee member.
|
|||||||||||||||||
7 Includes the first six weeks of Karen Hale's compensation, before her appointment to the Executive Committee, under other compensation. Comprises the compensation of Bertrand Bodson, former Chief Data Officer and Steven Baert, former Chief People & Organization Officer, including the vesting of their Long-Term Incentives for 2019-2021 performance cycle, as per the plan rules. The compensation and benefits elements related to the period after the step-down dates are reported under the other compensation column. Unvested shares for Shannon Klinger were forfeited upon her departure from the Company. See “—2021 Executive Committee member departures" for details.
|
|||||||||||||||||
8 Amounts for Executive Committee members paid in USD were converted at a rate of USD 1.00 = CHF 0.9139, which is the same average exchange rate used in the Group's 2021 consolidated financial statements (a similar rule applies to payments made in other currencies during the year).
|
Fixed compensation and pension benefits
|
Variable compensation
|
||||||||||||||||
Actual compensation paid or granted for 2022
|
Long-Term Incentive 2022-2024 cycle grants at target
|
||||||||||||||||
2022 annual base salary
|
2022 pension benefits
|
2022 Annual Incentive (performance achieved)
|
LTPP 2022-2024 cycle
|
Other 2022 compensation
|
Total compensation paid, promised or granted 2022
|
||||||||||||
Currency |
Cash (amount) |
Amount1 |
Cash (amount) |
Equity
(value at grant date)2 |
PSUs
(target value at grant date)3 |
Amount4 |
Amount5 |
||||||||||
Executive Committee members active on December 31, 2022
|
|||||||||||||||||
Vasant Narasimhan
|
CHF
|
1 786 500
|
174 488
|
1 342 125
|
1 342 196
|
5 815 886
|
499 445
|
10 960 639
|
|||||||||
Shreeram Aradhye (from May 16, 2022) 6
|
CHF
|
538 656
|
110 041
|
270 959
|
270 998
|
1 629 233
|
581 328
|
3 401 215
|
|||||||||
Victor Bulto (from May 1, 2022) 7, 8
|
USD
|
622 596
|
49 434
|
310 445
|
310 449
|
873 500
|
782 443
|
2 948 867
|
|||||||||
Aharon Gal (from July 18, 2022) 9
|
CHF
|
363 441
|
78 083
|
150 000
|
150 043
|
-
|
4 576 719
|
5 318 285
|
|||||||||
Karen Hale
|
CHF
|
845 834
|
215 842
|
-
|
935 059
|
1 700 058
|
146 154
|
3 842 946
|
|||||||||
Harry Kirsch
|
CHF
|
1 082 250
|
177 526
|
655 820
|
655 872
|
2 818 450
|
36 456
|
5 426 373
|
|||||||||
Robert Kowalski
|
CHF
|
705 833
|
207 628
|
349 965
|
349 986
|
1 272 601
|
307 969
|
3 193 982
|
|||||||||
Steffen Lang
|
CHF
|
840 833
|
180 675
|
165 136
|
935 826
|
1 722 021
|
14 431
|
3 858 923
|
|||||||||
Fiona Marshall (from November 1, 2022) 8, 9
|
USD
|
186 154
|
16 222
|
101 085
|
101 163
|
-
|
3 961 064
|
4 365 688
|
|||||||||
Klaus Moosmayer
|
CHF
|
580 000
|
181 112
|
313 740
|
313 819
|
1 045 859
|
32 026
|
2 466 555
|
|||||||||
Marie-France Tschudin
|
CHF
|
951 250
|
164 480
|
527 209
|
527 239
|
2 220 057
|
8 804
|
4 399 040
|
|||||||||
Total
|
8 466 817
|
1 552 567
|
4 167 896
|
5 874 057
|
19 058 209
|
10 732 583
|
49 852 130
|
||||||||||
|
|||||||||||||||||
Executive Committee members who stepped down during 2022
|
|||||||||||||||||
James Bradner (until October 31, 2022) 8, 10
|
USD
|
1 006 294
|
280 763
|
605 668
|
605 771
|
3 030 029
|
651 499
|
6 180 024
|
|||||||||
Richard Saynor (until October 25, 2022) 11
|
CHF
|
641 721
|
150 920
|
383 977
|
384 021
|
1 493 403
|
706 394
|
3 760 436
|
|||||||||
Susanne Schaffert (until April 4, 2022) 12
|
CHF
|
292 466
|
59 180
|
161 112
|
161 217
|
2 138 458
|
1 306 257
|
4 118 690
|
|||||||||
John Tsai (until May 15, 2022) 13
|
CHF
|
321 967
|
67 322
|
161 031
|
161 132
|
2 192 544
|
1 396 407
|
4 300 403
|
|||||||||
Robert Weltevreden (until April 4, 2022) 14
|
CHF
|
225 479
|
54 721
|
101 638
|
101 678
|
1 374 053
|
1 029 246
|
2 886 815
|
|||||||||
Subtotal
|
2 442 475
|
600 225
|
1 386 070
|
1 386 456
|
10 091 626
|
5 060 376
|
20 967 229
|
||||||||||
Total
|
10 909 292
|
2 152 792
|
5 553 966
|
7 260 514
|
29 149 836
|
15 792 959
|
70 819 358
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
Based on assumption of 100% payout at target. Actual payout (0-200% of target) will be known at the end of the three-year cycle in January 2025
|
|
|
|
|||
See next page for 2021 comparative figures.
|
|||||||||||||||||
1 Includes mandatory employer contributions of CHF 4 560 for the CEO and CHF 67 148 for the other current Executive Committee members paid by Novartis to governmental social security systems. This amount is out of total employer contributions of CHF 3 937 537 paid in 2022 for all Executive Committee members, and provides a right to the maximum future insured government pension benefit.
|
|||||||||||||||||
2 The portion of the Annual Incentive delivered in equity is rounded up to the nearest share, based on the closing share price on the grant date (January 25, 2023) of CHF 85.30 per Novartis share and USD 92.81 per ADR.
|
|||||||||||||||||
3 The amounts represent the underlying share value of the target number of PSUs granted to Executive Committee members for the 2022-2024 performance cycle, based on the closing share price on the grant date (January 26, 2022) of CHF 78.16 per Novartis share and USD 84.24 per ADR for all members.
|
|||||||||||||||||
4 Includes any other perquisites, benefits in kind, and international assignment benefits as per the global mobility policy (e.g., housing, international health insurance, children's school fees, tax equalization). The compensation and benefits elements related to the period after the step-down dates are also reported under ‘other 2022 compensation’.
|
|||||||||||||||||
5 All amounts are before deduction of the social security contribution and income tax due by the Executive Committee member.
|
|||||||||||||||||
6 Shreeram Aradhye received a pro-rata LTPP award of 18 905 PSUs on June 1, 2022 (at CHF 86.18 closing share price on grant date) upon joining the organization, as per contractual entitlement.
|
|||||||||||||||||
7 Victor Bulto received his 2022 LTPP grant before his appointment to Executive Committee, therefore the reported LTPP amount is pro-rated to reflect his time as Executive Committee member over the full performance cycle.
|
|||||||||||||||||
8 Amounts in USD for Victor Bulto, Fiona Marshall and James Bradner were converted at a rate of CHF 1.00 = USD 1.0473, which is the average rate used in the Group’s 2022 consolidated financial statements.
|
|||||||||||||||||
9 Aharon Gal and Fiona Marshall did not receive a pro-rata LTPP award upon joining the organization, as they received buyout grants for their forfeited awards upon joining.
|
|||||||||||||||||
10 James Bradner stepped down from the Executive Committee on October 31, 2022 and will end his notice period on October 31, 2023, in line with his contractual notice period (for more details, see “—2022 Executive Committee member departures”). The LTPP grant for the 2022-2024 performance cycle, included in the table above, will vest at the end of the performance cycle on a pro-rata basis subject to the plan rules.
|
|||||||||||||||||
11 Richard Saynor left the Executive Committee on October 25, 2022. The LTPP grant for the 2022-2024 performance cycle, included in the table above, will vest at the end of the performance cycle, subject to the plan rules.
|
|||||||||||||||||
12 Susanne Schaffert stepped down from the Executive Committee on April 4, 2022 and will end her notice period on April 30, 2023, in line with her contractual notice period (for more details, see “—2022 Executive Committee member departures”). The LTPP grant for the 2022-2024 performance cycle, included in the table above, will vest at the end of the performance cycle on a pro-rata basis subject to the plan rules.
|
|||||||||||||||||
13 John Tsai stepped down from the Executive Committee on May 15, 2022 and will end his notice period on May 15, 2023, in line with his contractual notice period (for more details, see “—2022 Executive Committee member departures”). The LTPP grant for the 2022-2024 performance cycle, included in the table above, will vest at the end of the performance cycle on a pro-rata basis subject to the plan rules.
|
|||||||||||||||||
14 Robert Weltevreden stepped down from the Executive Committee on April 4, 2022 and will end his notice period on April 30, 2023, in line with his contractual notice period (for more details, see “—2022 Executive Committee member departures”). The LTPP grant for the 2022-2024 performance cycle, included in the table above, will vest at the end of the performance cycle on a pro-rata basis subject to the plan rules.
|
Executive Committee member compensation at grant for financial year 2021
|
||||||||||||||||||||||||||||||||||
Fixed compensation and pension benefits
|
Variable compensation
|
|||||||||||||||||||||||||||||||||
Actual compensation paid or granted for 2021
|
Long-Term Incentive 2021-2023 cycle grants at target
|
|||||||||||||||||||||||||||||||||
2021 annual base salary
|
2021 pension benefits
|
2021 Annual Incentive (performance achieved)
|
LTPP 2021-2023 cycle
|
Other 2021 compensation
|
Total compensation paid, promised or granted 2021
|
|||||||||||||||||||||||||||||
Currency |
Cash (amount) |
Amount1 |
Cash (amount) |
Equity
(value at grant date)2 |
PSUs
(target value at grant date)3 |
Amount4 |
Amount5 |
|||||||||||||||||||||||||||
Executive Committee members active on December 31, 2021
|
||||||||||||||||||||||||||||||||||
Vasant Narasimhan
|
CHF
|
1 769 200
|
176 731
|
1 328 625
|
1 328 642
|
5 757 423
|
265 401
|
10 626 023
|
||||||||||||||||||||||||||
James Bradner 6
|
USD
|
1 184 462
|
367 246
|
712 802
|
712 839
|
2 970 016
|
92 286
|
6 039 652
|
||||||||||||||||||||||||||
Karen Hale (from May 15, 2021) 7
|
CHF
|
519 750
|
85 987
|
261 062
|
261 133
|
1 442 371
|
542 689
|
3 112 992
|
||||||||||||||||||||||||||
Harry Kirsch
|
CHF
|
1 072 084
|
177 174
|
354 255
|
1 062 820
|
2 791 111
|
43 617
|
5 501 060
|
||||||||||||||||||||||||||
Robert Kowalski (from September 1, 2021) 8
|
CHF
|
233 333
|
49 692
|
105 288
|
105 360
|
448 824
|
180 428
|
1 122 925
|
||||||||||||||||||||||||||
Steffen Lang
|
CHF
|
780 833
|
180 413
|
508 680
|
763 076
|
1 570 027
|
14 430
|
3 817 459
|
||||||||||||||||||||||||||
Klaus Moosmayer
|
CHF
|
566 667
|
198 992
|
253 000
|
253 004
|
1 035 044
|
49 850
|
2 356 557
|
||||||||||||||||||||||||||
Richard Saynor
|
CHF
|
785 000
|
190 263
|
196 500
|
196 572
|
1 493 478
|
416 693
|
3 278 506
|
||||||||||||||||||||||||||
Susanne Schaffert
|
CHF
|
881 333
|
180 837
|
88 250
|
794 262
|
2 118 082
|
856 650
|
4 919 415
|
||||||||||||||||||||||||||
John Tsai
|
CHF
|
875 834
|
186 807
|
306 950
|
307 012
|
2 192 567
|
201 307
|
4 070 477
|
||||||||||||||||||||||||||
Marie-France Tschudin
|
CHF
|
881 333
|
164 980
|
706 000
|
706 019
|
2 029 750
|
-
|
4 488 083
|
||||||||||||||||||||||||||
Robert Weltevreden
|
CHF
|
673 333
|
171 352
|
299 200
|
299 275
|
1 292 042
|
-
|
2 735 202
|
||||||||||||||||||||||||||
Total
|
10 121 211
|
2 098 866
|
5 059 259
|
6 728 657
|
24 885 096
|
2 655 408
|
51 548 498
|
|||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||
Executive Committee members who stepped down during 2021
|
||||||||||||||||||||||||||||||||||
Steven Baert (until June 30, 2021) 9
|
CHF
|
400 277
|
87 753
|
399 887
|
-
|
422 223
|
1 831 302
|
3 141 442
|
||||||||||||||||||||||||||
Bertrand Bodson (until January 31, 2021) 10
|
CHF
|
54 451
|
15 240
|
43 485
|
-
|
-
|
1 339 471
|
1 452 647
|
||||||||||||||||||||||||||
Shannon Thyme Klinger (until March 15, 2021) 11
|
CHF
|
177 102
|
40 434
|
-
|
-
|
279 791
|
2 018 161
|
2 515 487
|
||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||
Subtotal
|
631 830
|
143 427
|
443 372
|
0
|
702 014
|
5 188 934
|
7 109 576
|
|||||||||||||||||||||||||||
Total
|
10 753 041
|
2 242 292
|
5 502 631
|
6 728 657
|
25 587 110
|
7 844 343
|
58 658 074
|
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
Based on assumption of 100% payout at target. Actual payout (0-200% of target) will be known at the end of the three-year cycle in January 2024
|
|
|
|
||||||||||||||||||||
1 Includes mandatory employer contributions of CHF 5 498 for the CEO and CHF 53 693 for the other Executive Committee members paid by Novartis to governmental social security systems. This amount is out of total employer contributions of CHF 4 966 397 paid in 2021 for all Executive Committee members, and provides a right to the maximum future insured government pension benefit.
|
||||||||||||||||||||||||||||||||||
2 The portion of the Annual Incentive delivered in equity is rounded up to the nearest share, based on the closing share price on the grant date (January 26, 2022) of CHF 78.16 per Novartis share and USD 84.24 per ADR.
|
||||||||||||||||||||||||||||||||||
3 The amounts represent the underlying share value of the target number of PSUs granted to Executive Committee members for the 2021-2023 performance cycle, based on the closing share price on the grant date (January 20, 2021) of CHF 86.01 per Novartis share and USD 96.92 per ADR for all members.
|
||||||||||||||||||||||||||||||||||
4 Includes any other perquisites, benefits in kind, and international assignment benefits as per the global mobility policy (e.g., housing, international health insurance, children's school fees, tax equalization). The compensation and benefits elements related to the period after the step-down dates are also reported under ‘other 2021 compensation’.
|
||||||||||||||||||||||||||||||||||
5 All amounts are before deduction of the social security contribution and income tax due by the Executive Committee member.
|
||||||||||||||||||||||||||||||||||
6 Amounts in USD for James Bradner were converted at a rate of CHF 1.00 = USD 1.0942, which is the average rate used in the Group’s 2021 consolidated financial statements.
|
||||||||||||||||||||||||||||||||||
7 Karen Hale received a pro-rata LTPP award of 18 639 PSUs on Apr-2, 2021 (at CHF 81.15 share price at grant) upon joining the organization, as per contractual entitlement. The other compensation amount includes the first six weeks of compensation before her appointment to the Executive Committee.
|
||||||||||||||||||||||||||||||||||
8 Robert Kowalski received his 2021 LTPP grant before his appointment to Executive Committee, therefore the reported LTPP amount is pro-rated to reflect his time as Executive Committee member over the full performance cycle.
|
||||||||||||||||||||||||||||||||||
9 Steven Baert left the Executive Committee on June 30, 2021 and ended his notice period on September 30, 2021, in line with his reduced contractual notice period (for more details, see “—2021 Executive Committee member departures”). He received his 2021 Annual Incentive 100% in cash on a pro-rata basis, and the LTPP grant for the 2021-2023 performance cycle, included in the table above, will vest at the end of the performance cycle on a pro-rata basis subject to the plan rules.
|
||||||||||||||||||||||||||||||||||
10 Bertrand Bodson left the Executive Committee on January 31, 2021 and ended his notice period on November 30, 2021, in line with his reduced contractual notice period (for more details, see “—2021 Executive Committee member departures”). He received his 2021 Annual Incentive 100% in cash on a pro-rata basis, and no LTPP was granted for the 2021-2023 performance cycle.
|
||||||||||||||||||||||||||||||||||
11 Shannon Klinger resigned as Chief Legal Officer as of March 15, 2021, and left the Company on May 31, 2021, in line with her reduced contractual notice period (for more details, see “—2021 Executive Committee member departures”). The 2021 Annual Incentive and LTPP 2021-2023 cycle grant (23 586 PSUs), displayed at pro-rata value for the time she was in her role in 2021, were forfeited in full upon her departure.
|
Variable compensation1
|
|||||||
2022 Annual Incentive (performance achieved)
|
LTPP 2022-2024 cycle
|
Other
|
|||||
Equity
(number)2 |
PSUs
(target number)3 |
Equity/PSUs
(number) |
|||||
Executive Committee members active on December 31, 2022
|
|||||||
Vasant Narasimhan
|
15 735
|
74 410
|
0
|
||||
Shreeram Aradhye (from May 16, 2022)
|
3 177
|
18 905
|
5 708
|
||||
Victor Bulto (from May 1, 2022)
|
3 345
|
10 671
|
0
|
||||
Aharon Gal (from July 18, 2022)
|
1 759
|
0
|
43 253
|
||||
Karen Hale
|
10 962
|
21 751
|
0
|
||||
Harry Kirsch
|
7 689
|
36 060
|
0
|
||||
Robert Kowalski
|
4 103
|
16 282
|
0
|
||||
Steffen Lang
|
10 971
|
22 032
|
0
|
||||
Fiona Marshall (from November 1, 2022)
|
1 090
|
0
|
41 510
|
||||
Klaus Moosmayer
|
3 679
|
13 381
|
0
|
||||
Marie-France Tschudin
|
6 181
|
28 404
|
0
|
||||
Total
|
68 691
|
241 896
|
90 471
|
||||
|
|||||||
Executive Committee members who stepped down during 2022
|
|||||||
James Bradner (until October 31, 2022) 4
|
6 527
|
35 969
|
0
|
||||
Richard Saynor (until October 25, 2022) 5
|
4 502
|
19 107
|
0
|
||||
Susanne Schaffert (until April 4, 2022) 6
|
1 890
|
27 360
|
0
|
||||
John Tsai (until May 15, 2022) 7
|
1 889
|
28 052
|
0
|
||||
Robert Weltevreden (until April 4, 2022) 8
|
1 192
|
17 580
|
0
|
||||
Subtotal
|
16 000
|
128 068
|
0
|
||||
Total
|
84 691
|
369 964
|
90 471
|
||||
See next page for 2021 comparative figures.
|
|||||||
1 The values of the awards are reported in the table "2022 compensation at grant value for the CEO and other Executive Committee members."
|
|||||||
2 Vested shares, restricted shares and/or RSUs granted under the Annual Incentive for the 2022 performance period.
|
|||||||
3 Target number of PSUs granted under the LTPP as applicable for the 2022-2024 performance cycle.
|
|||||||
4 James Bradner stepped down from the Executive Committee on October 31, 2022 and will end his notice period on October 31, 2023, in line with his contractual notice period (for more details, see “—2022 Executive Committee member departures”). The LTPP grant for the 2022-2024 performance cycle, included in the table above, will vest at the end of the performance cycle on a pro-rata basis subject to the plan rules.
|
|||||||
5 Richard Saynor left the Executive Committee on October 25, 2022. The LTPP grant for the 2022-2024 performance cycle, included in the table above, will vest at the end of the performance cycle, subject to the plan rules.
|
|||||||
6 Susanne Schaffert stepped down from the Executive Committee on April 4, 2022 and will end her notice period on April 30, 2023, in line with her contractual notice period (for more details, see “—2022 Executive Committee member departures”). The LTPP grant for the 2022-2024 performance cycle, included in the table above, will vest at the end of the performance cycle on a pro-rata basis subject to the plan rules.
|
|||||||
7 John Tsai stepped down from the Executive Committee on May 15, 2022 and will end his notice period on May 15, 2023, in line with his contractual notice period (for more details, see “—2022 Executive Committee member departures”). The LTPP grant for the 2022-2024 performance cycle, included in the table above, will vest at the end of the performance cycle on a pro-rata basis subject to the plan rules.
|
|||||||
8 Robert Weltevreden stepped down from the Executive Committee on April 4, 2022 and will end his notice period on April 30, 2023, in line with his contractual notice period (for more details, see “—2022 Executive Committee member departures”). The LTPP grant for the 2022-2024 performance cycle, included in the table above, will vest at the end of the performance cycle on a pro-rata basis subject to the plan rules.
|
Variable compensation1
|
|||||||
2021 Annual Incentive (performance achieved)
|
LTPP 2021-2023 cycle
|
Other
|
|||||
Equity
(number)2 |
PSUs
(target number)3 |
Equity/PSUs
(number) |
|||||
Executive Committee members active on December 31, 2021
|
|||||||
Vasant Narasimhan
|
16 999
|
66 939
|
0
|
||||
James Bradner
|
8 462
|
30 644
|
0
|
||||
Karen Hale (from May 15, 2021)
|
3 341
|
17 823
|
0
|
||||
Harry Kirsch
|
13 598
|
32 451
|
0
|
||||
Robert Kowalski (from September 1, 2021)
|
1 348
|
5 067
|
0
|
||||
Steffen Lang
|
9 763
|
18 254
|
0
|
||||
Klaus Moosmayer
|
3 237
|
12 034
|
0
|
||||
Richard Saynor
|
2 515
|
17 364
|
0
|
||||
Susanne Schaffert
|
10 162
|
24 626
|
0
|
||||
John Tsai
|
3 928
|
25 492
|
0
|
||||
Marie-France Tschudin
|
9 033
|
23 599
|
0
|
||||
Robert Weltevreden
|
3 829
|
15 022
|
0
|
||||
Total
|
86 215
|
289 315
|
0
|
||||
|
|||||||
Executive Committee members who stepped down during 2021
|
|||||||
Steven Baert (until June 30, 2021) 4
|
0
|
4 909
|
0
|
||||
Bertrand Bodson (until January 31, 2021) 5
|
0
|
0
|
0
|
||||
Shannon Thyme Klinger (until March 15, 2021) 6
|
0
|
3 253
|
0
|
||||
Subtotal
|
0
|
8 162
|
0
|
||||
Total
|
86 215
|
297 477
|
0
|
||||
1 The values of the awards are reported in the table "2021 compensation at grant value for the CEO and other Executive Committee members."
|
|||||||
2 Vested shares, restricted shares and/or RSUs granted under the Annual Incentive for the 2021 performance period.
|
|||||||
3 Target number of PSUs granted under the LTPP as applicable for the 2021-2023 performance cycle.
|
|||||||
4 Steven Baert left the Executive Committee on June 30, 2021 and ended his notice period on September 30, 2021, in line with his reduced contractual notice period (for more details, see “—2021 Executive Committee member departures”). The LTPP grant for the 2021-2023 performance cycle, included in the table above, will vest at the end of the performance cycle on a pro-rata basis subject to the plan rules.
|
|||||||
5 Bertrand Bodson left the Executive Committee on January 31, 2021 and ended his notice period on November 30, 2021, in line with his reduced contractual notice period (for more details, see “—2021 Executive Committee member departures”). No LTPP was granted for the 2021-2023 performance cycle.
|
|||||||
6 Shannon Klinger resigned as Chief Legal Officer as of March 15, 2021, and left the Company on May 31, 2021, in line with her reduced contractual notice period (for more details, see “—2021 Executive Committee member departures”). The LTPP 2021-2023 cycle grant (23 586 PSUs), displayed at pro-rata value for the time she was in her role in 2021, was forfeited in full upon her departure.
|
Function
|
Ownership level
|
||
CEO
|
5 x base compensation
|
||
Other Executive Committee members
|
3 x base compensation
|
||
Vested shares and ADRs1 |
Unvested shares and other equity rights2 |
Equity ownership level
as a multiple of annual base salary3 |
Unvested target PSUs (e.g., LTPP)4 |
Total as at
December 31, 2022 |
|||||||
Vasant Narasimhan
|
228 614
|
69 687
|
13x
|
108 201
|
406 502
|
||||||
Shreeram Aradhye (from May 16, 2022)
|
1 241
|
8 885
|
0x
|
4 268
|
14 394
|
||||||
Victor Bulto (from May 1, 2022)
|
0
|
21 292
|
2x
|
15 094
|
36 386
|
||||||
Aharon Gal (from July 18, 2022)
|
17 948
|
45 012
|
6x
|
0
|
62 960
|
||||||
Karen Hale
|
0
|
9 458
|
0x
|
19 110
|
28 568
|
||||||
Harry Kirsch
|
312 682
|
34 816
|
26x
|
52 450
|
399 948
|
||||||
Robert Kowalski
|
0
|
17 398
|
2x
|
15 097
|
32 495
|
||||||
Steffen Lang
|
118 057
|
27 383
|
14x
|
28 797
|
174 237
|
||||||
Fiona Marshall (from November 1, 2022)
|
0
|
32 951
|
2x
|
2 029
|
34 980
|
||||||
Klaus Moosmayer
|
16 713
|
12 524
|
4x
|
18 184
|
47 421
|
||||||
Marie-France Tschudin
|
52 818
|
28 447
|
6x
|
46 699
|
127 964
|
||||||
Subtotal
|
748 073
|
307 853
|
309 929
|
1 365 855
|
|||||||
|
|||||||||||
Executive Committee members who stepped down during 2022
|
|||||||||||
James Bradner (until October 31, 2022)
|
0
|
34 231
|
2x
|
70 171
|
104 402
|
||||||
Richard Saynor (until October 25, 2022)
|
0
|
16 843
|
1x
|
48 117
|
64 960
|
||||||
Susanne Schaffert (until April 4, 2022)
|
142 844
|
26 245
|
15x
|
44 981
|
214 070
|
||||||
John Tsai (until May 15, 2022)
|
13 550
|
21 812
|
3x
|
49 826
|
85 188
|
||||||
Robert Weltevreden (until April 4, 2022)
|
28 755
|
14 436
|
5x
|
27 317
|
70 508
|
||||||
Subtotal
|
185 149
|
113 567
|
240 412
|
539 128
|
|||||||
Total
|
933 222
|
421 420
|
550 341
|
1 904 983
|
|||||||
1 Includes holdings of "persons closely linked" to Executive Committee members (see the ‘persons closely linked’ definition).
|
|||||||||||
2 Includes unvested shares and ADRs as well as other equity rights applicable for the determination of equity amounts for the share ownership requirements, as per the definition above.
|
|||||||||||
3 The multiple is calculated based on the full-year annual base salary and the closing share price as at the end of the 2022 financial year. The share price on the final trading day of 2022 was CHF 83.59 / USD 90.72 as at December 31, 2022.
|
|||||||||||
4 The target number of PSUs is disclosed pro-rata to December 31, 2022, unless the award qualified for full vesting under the relevant plan rules.
|
Annual
base salary1 |
Variable
compensation2 |
||||
Vasant Narasimhan
|
16.6%
|
83.4%
|
|||
Shreeram Aradhye (from May 16, 2022)
|
16.4%
|
83.6%
|
|||
Victor Bulto (from May 1, 2022)
|
21.5%
|
78.5%
|
|||
Aharon Gal (from July 18, 2022)
|
6.9%
|
93.1%
|
|||
Karen Hale
|
23.3%
|
76.7%
|
|||
Harry Kirsch
|
20.6%
|
79.4%
|
|||
Robert Kowalski
|
23.6%
|
76.4%
|
|||
Steffen Lang
|
22.9%
|
77.1%
|
|||
Fiona Marshall (from November 1, 2022)
|
4.3%
|
95.7%
|
|||
Klaus Moosmayer
|
25.4%
|
74.6%
|
|||
Marie-France Tschudin
|
22.5%
|
77.5%
|
|||
Total 3
|
17.5%
|
82.5%
|
|||
1 Excludes pension and other benefits and is pro-rated for ECN time.
|
|||||
2 See the table “2022 compensation at grant value for the CEO and other Executive Committee members” with regard to the disclosure principles of variable compensation.
|
|||||
3 Excludes members, who stepped down during the year.
|
Performance measures
|
Tracking
|
||
Net sales CAGR (25%)
|
![]() |
||
Core operating income CAGR (25%)
|
![]() |
||
Innovation (25%)
|
![]() |
||
Relative TSR (25%)
|
![]() |
||
CAGR = compound annual growth rate
|
Performance measures
|
Tracking
|
||
Net sales CAGR (25%)
|
![]() |
||
Core operating income CAGR (25%)
|
![]() |
||
Innovation (25%)
|
![]() |
||
Relative TSR (25%)
|
![]() |
||
CAGR = compound annual growth rate
|
2023 Executive Committee compensation
2022 Board compensation
CHF 000s |
2022-2023 AGM
annual fee |
||
Board Chair
|
3 800
|
||
Board membership
|
280
|
||
Vice-Chair
|
50
|
||
Lead Independent Director
|
20
|
||
Chair of the Audit and Compliance Committee
|
130
|
||
Chair of the Compensation Committee
|
90
|
||
Chair of the following committees:
• Governance, Nomination and Corporate Responsibilities Committee • Science & Technology Committee • Risk Committee |
70 |
||
Membership of the Audit
and Compliance Committee |
70 |
||
Membership of the following committees:
• Compensation Committee • Governance, Nomination and Corporate Responsibilities Committee • Science & Technology Committee • Risk Committee |
40 |
||
Board membership
|
Audit and Compliance Committee
|
Compensation Committee
|
Governance, Sustainability and Nomination Committee
|
Science & Technology Committee
|
Risk Committee
|
Shares (number)1
|
Cash (CHF) (A)
|
Shares (CHF) (B)
|
Other (CHF) (C)2
|
Total (CHF) (A)+(B)+(C)3
|
|||||||||||||
Board members active on December 31, 2022
|
|||||||||||||||||||||||
Joerg Reinhardt 4
|
Board Chair
|
Chair
|
23 574
|
1 900 000
|
1 900 000
|
3 670
|
3 803 670
|
||||||||||||||||
Simon Moroney
|
Vice-Chair 6
|
Chair
|
•
|
2 695
|
225 834
|
225 834
|
4 560
|
456 228
|
|||||||||||||||
Patrice Bula
|
Lead Independent Director 6
|
•
|
Chair 6
|
2 259
|
197 500
|
197 500
|
3 670
|
398 670
|
|||||||||||||||
Nancy C. Andrews
|
•
|
•
|
•
|
2 233
|
180 000
|
180 000
|
-
|
360 000
|
|||||||||||||||
Ton Buechner
|
•
|
•
|
Chair
|
2 605
|
210 000
|
210 000
|
4 560
|
424 560
|
|||||||||||||||
Elizabeth Doherty
|
•
|
Chair
|
•
|
2 791
|
225 000
|
225 000
|
-
|
450 000
|
|||||||||||||||
Bridgette Heller
|
•
|
•
|
•
|
• 6
|
2 541
|
211 667
|
211 667
|
-
|
423 334
|
||||||||||||||
Daniel Hochstrasser
|
• 6
|
856
|
116 667
|
116 667
|
4 560
|
237 894
|
|||||||||||||||||
Frans van Houten
|
•
|
•
|
•
|
4 838
|
-
|
390 000
|
-
|
390 000
|
|||||||||||||||
Ana de Pro Gonzalo
|
• 6
|
•
|
•
|
1 192
|
162 500
|
162 500
|
4 560
|
329 560
|
|||||||||||||||
Andreas von Planta
|
•
|
•
|
•
|
2 327
|
182 500
|
182 500
|
3 670
|
368 670
|
|||||||||||||||
Charles L. Sawyers
|
•
|
•
|
•
|
2 233
|
180 000
|
180 000
|
-
|
360 000
|
|||||||||||||||
William T. Winters
|
•
|
•
|
•
|
4 466
|
-
|
360 000
|
-
|
360 000
|
|||||||||||||||
Subtotal
|
54 610
|
3 791 668
|
4 541 668
|
29 250
|
8 362 586
|
||||||||||||||||||
|
|||||||||||||||||||||||
Board members who stepped down at the 2022 AGM
|
|||||||||||||||||||||||
Ann Fudge 5
|
1 132
|
30 000
|
30 000
|
-
|
60 000
|
||||||||||||||||||
Enrico Vanni 5
|
1 509
|
40 000
|
40 000
|
3 670
|
83 670
|
||||||||||||||||||
Subtotal
|
2 641
|
70 000
|
70 000
|
3 670
|
143 670
|
||||||||||||||||||
Total
|
57 251
|
3 861 668
|
4 611 668
|
32 919
|
8 506 255
|
||||||||||||||||||
See next page for 2021 comparative figures.
|
|||||||||||||||||||||||
1 The shown amounts represent the gross number of shares delivered to each Board member in 2022 for the respective Board member’s service period. The number of shares reported in this column represent: (i) the second and final equity installment delivered in February 2022 for the services from the 2021 AGM to the 2022 AGM, and (ii) the first of two equity installments delivered in August 2022 for the services from the 2022 AGM to the 2023 AGM. The second and final equity installment for the services from the 2022 AGM to the 2023 AGM will take place in February 2023.
|
|||||||||||||||||||||||
2 Includes an amount of CHF 29 250 for mandatory employer contributions for all Board members paid by Novartis to Swiss governmental social security systems. This amount is out of total employer contributions of CHF 453 083 and provides a right to the maximum future insured government pension benefit for the Board members.
|
|||||||||||||||||||||||
3 All amounts are before deduction of the social security contribution and income tax due by the Board member.
|
|||||||||||||||||||||||
4 No additional committee fees for chairing the Science & Technology Committee were delivered to Joerg Reinhardt.
|
|||||||||||||||||||||||
5 Until March 4, 2022.
|
|||||||||||||||||||||||
6 From March 4, 2022.
|
Board membership
|
Audit and Compliance Committee
|
Compensation Committee
|
Governance, Sustainability and Nomination Committee
|
Science & Technology Committee
|
Risk Committee
|
Shares (number)1
|
Cash (CHF) (A)
|
Shares (CHF) (B)
|
Other (CHF) (C)2
|
Total (CHF) (A)+(B)+(C)3
|
|||||||||||||
Board members active on December 31, 2021
|
|||||||||||||||||||||||
Joerg Reinhardt 4
|
Chairman
|
Chair
|
22 830
|
1 900 000
|
1 900 000
|
4 560
|
3 804 560
|
||||||||||||||||
Enrico Vanni
|
Vice Chairman / Lead Independent Director7
|
•
|
•
|
•
|
3 035
|
244 167
|
244 167
|
3 670
|
492 004
|
||||||||||||||
Nancy C. Andrews
|
•
|
•
|
•
|
2 162
|
180 000
|
180 000
|
-
|
360 000
|
|||||||||||||||
Ton Buechner
|
•
|
•
|
Chair 6
|
3 625
|
175 000
|
240 000
|
4 560
|
419 560
|
|||||||||||||||
Patrice Bula
|
•
|
•
|
1 922
|
160 000
|
160 000
|
4 560
|
324 560
|
||||||||||||||||
Elizabeth Doherty
|
•
|
Chair
|
•
|
3 391
|
206 250
|
243 750
|
-
|
450 000
|
|||||||||||||||
Ann Fudge
|
•
|
•
|
•
|
2 162
|
180 000
|
180 000
|
-
|
360 000
|
|||||||||||||||
Bridgette Heller
|
•
|
• 6
|
•
|
2 128
|
189 167
|
189 167
|
-
|
378 334
|
|||||||||||||||
Frans van Houten
|
•
|
• 6
|
•
|
4 257
|
-
|
378 333
|
-
|
378 333
|
|||||||||||||||
Simon Moroney
|
•
|
Chair 6
|
•
|
2 187
|
197 500
|
197 500
|
4 560
|
399 560
|
|||||||||||||||
Andreas von Planta
|
•
|
Chair
|
•
|
2 556
|
200 833
|
200 833
|
3 670
|
405 336
|
|||||||||||||||
Charles L. Sawyers
|
•
|
•
|
•
|
2 162
|
180 000
|
180 000
|
-
|
360 000
|
|||||||||||||||
William T. Winters
|
•
|
•
|
•
|
4 325
|
-
|
360 000
|
-
|
360 000
|
|||||||||||||||
Subtotal
|
56 742
|
3 812 917
|
4 653 750
|
25 580
|
8 492 247
|
||||||||||||||||||
|
|||||||||||||||||||||||
Board members who stepped down at the 2021 AGM
|
|||||||||||||||||||||||
Srikant Datar 5
|
1 970
|
23 000
|
53 667
|
-
|
76 667
|
||||||||||||||||||
Subtotal
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Total
|
58 712
|
3 835 917
|
4 707 417
|
25 580
|
8 568 914
|
||||||||||||||||||
1 The shown amounts represent the gross number of shares delivered to each Board member in 2021 for the respective Board member’s service period. The number of shares reported in this column represent: (i) the second and final equity installment delivered in February 2021 for the services from the 2020 AGM to the 2021 AGM, and (ii) the first of two equity installments delivered in August 2021 for the services from the 2021 AGM to the 2022 AGM. The second and final equity installment for the services from the 2021 AGM to the 2022 AGM will take place in February 2022.
|
|||||||||||||||||||||||
2 Includes an amount of CHF 25 580 for mandatory employer contributions for all Board members paid by Novartis to governmental social security systems. This amount is out of total employer contributions of CHF 435 204 and provides a right to the maximum future insured government pension benefit for the Board member.
|
|||||||||||||||||||||||
3 All amounts are before deduction of the social security contribution and income tax due by the Board member.
|
|||||||||||||||||||||||
4 No additional committee fees for chairing the Science & Technology Committee were delivered to Joerg Reinhardt.
|
|||||||||||||||||||||||
5 Until March 2, 2021.
|
|||||||||||||||||||||||
6 From March 2, 2021.
|
|||||||||||||||||||||||
7 No additonal compensation was paid for the Lead Independent Director role.
|
Number of shares
at December 31, 20221,2 |
|||
Joerg Reinhardt
|
632 730
|
||
Simon Moroney
|
4 102
|
||
Patrice Bula
|
8 802
|
||
Nancy C. Andrews
|
8 931
|
||
Ton Buechner
|
20 461
|
||
Elizabeth Doherty
|
12 836
|
||
Bridgette Heller
|
4 296
|
||
Daniel Hochstrasser
|
804
|
||
Frans van Houten
|
14 442
|
||
Ana de Pro Gonzalo
|
823
|
||
Andreas von Planta
|
168 717
|
||
Charles L. Sawyers
|
15 888
|
||
William T. Winters
|
27 659
|
||
Sub-Total
|
920 491
|
||
|
|||
Board members who stepped down at the 2022 AGM
|
|||
Enrico Vanni
|
32 078
|
||
Ann Fudge
|
12 751
|
||
Sub-Total
|
44 829
|
||
Total
|
965 320
|
||
1 Includes holdings of "persons closely linked" to Board members (see definition “Persons closely linked").
|
|||
2 Each share provides entitlement to one vote.
|
Compensation governance
Decision on
|
Decision-making authority
|
||
Compensation of Board Chair and other Board members
|
Board of Directors
|
||
Compensation of CEO
|
Board of Directors
|
||
Compensation of other Executive Committee members
|
Compensation Committee
|
||
6.C Board practices
% holding of
share capital Dec 31, 2022 |
|||
Shareholders registered for their own account:
|
|||
Emasan AG, Basel
|
3.7
|
||
UBS Fund Management (Switzerland) AG, Basel
|
2.3
|
||
Credit Suisse Funds AG, Zurich
|
2.1
|
||
% holding of
share capital Dec 31, 2022 |
|||
Shareholders registered as nominees:
|
|||
Chase Nominees Ltd., London
|
8.4
|
||
Nortrust Nominees Ltd., London
|
3.8
|
||
The Bank of New York Mellon, New York
|
2.9
|
||
Through The Bank of New York Mellon, Everett
|
1.6
|
||
Through The Bank of New York Mellon, New York
|
0.9
|
||
Through The Bank of New York Mellon, SA/NV, Brussels
|
0.4
|
||
Shareholder acting as American Depositary Share (ADS) depositary:
|
|||
JPMorgan Chase Bank, N.A., New York
|
9.4
|
||
As of December 31, 20221 |
Number of
registered shareholders |
% of share capital |
|||
1–100
|
34 085
|
0.08
|
|||
101–1 000
|
110 467
|
1.86
|
|||
1 001–10 000
|
37 732
|
4.32
|
|||
10 001–100 000
|
3 212
|
3.39
|
|||
100 001–1 000 000
|
475
|
5.85
|
|||
1 000 001–5 000 000
|
68
|
5.39
|
|||
5 000 001 or more 2
|
29
|
46.14
|
|||
Total registered shareholders/shares
|
186 068
|
67.03
|
|||
Unregistered shares
|
32.97
|
||||
Total
|
100.00
|
||||
1 At the record date of the 2022 Annual General Meeting of Shareholders (AGM), unregistered shares amounted to 17.0%.
|
|||||
2 Including significant registered shareholders as listed above
|
As of December 31, 2022
|
Shareholders in %
|
Shares in %
|
|||
Individual shareholders
|
96.71
|
15.61
|
|||
Legal entities 1
|
3.25
|
37.69
|
|||
Nominees, fiduciaries and ADS depositary
|
0.04
|
46.70
|
|||
Total
|
100.00
|
100.00
|
|||
1 Excluding 7.7% of the share capital held as treasury shares by Novartis AG or its fully owned subsidiaries. As of the entry into force of the revised Swiss Code of Obligations on January 1, 2023, Novartis ordinary shares held by certain Swiss foundations controlled by Novartis also no longer carry the right to vote and therefore will be treated for this calculation as treasury shares going forward.
|
As of December 31, 2022
|
Shareholders in %
|
Shares in %
|
|||
Belgium
|
0.11
|
0.77
|
|||
France
|
1.97
|
0.36
|
|||
Germany
|
5.72
|
1.82
|
|||
Japan
|
0.17
|
0.45
|
|||
Luxembourg
|
0.06
|
0.79
|
|||
Switzerland 2
|
87.14
|
48.39
|
|||
United Kingdom
|
0.63
|
23.68
|
|||
United States
|
0.25
|
21.29
|
|||
Other countries
|
3.95
|
2.45
|
|||
Total
|
100.00
|
100.00
|
|||
1 Registered shares held by nominees are shown in the country where the company/affiliate entered in the Share Register as shareholder has its registered seat.
|
|||||
2 Excluding 7.7% of the share capital held as treasury shares by Novartis AG or its fully owned subsidiaries. As of the entry into force of the revised Swiss Code of Obligations on January 1, 2023, Novartis ordinary shares held by certain Swiss foundations controlled by Novartis also no longer carry the right to vote and therefore will be treated for this calculation as treasury shares going forward.
|
AGM |
Shareholder decision |
Shares canceled |
Average repurchase
share price (CHF)1 |
||||
2020
|
• Capital reduction by CHF 30.16 million (from CHF 1 263 687 410 to CHF 1 233 530 460)
|
60 313 900
|
88.18
|
||||
2021
|
• Capital reduction by CHF 16.32 million (from CHF 1 233 530 460 to CHF 1 217 210 460)
• Authorization of the Board to repurchase shares up to a maximum of CHF 10 billion between the 2021 AGM and the 2024 AGM |
32 640 000
|
80.57
|
||||
2022
|
• Capital reduction by CHF 15.35 million (from CHF 1 217 210 460 to CHF 1 201 860 626)
• Authorization of the Board to repurchase shares up to a maximum of CHF 10 billion between the 2022 AGM and the 2025 AGM2 |
30 699 668
|
81.82
|
||||
|
|||||||
AGM |
Proposal to the shareholders |
Shares to be canceled |
Average repurchase
share price (CHF)1 |
||||
2023
|
• Capital reduction by CHF 63.12 million (from CHF 1 201 860 626 to CHF 1 138 738 876)
• Authorization of the Board to repurchase shares up to a maximum of CHF 10 billion between the 2023 AGM and the 2026 AGM3 |
126 243 500
|
81.56
|
||||
1 All shares were repurchased on the SIX Swiss Exchange second trading line.
|
|||||||
2 In addition to the remaining authorization from the 2021 AGM
|
|||||||
3 In addition to the remaining authorization from the 2022 AGM
|
2022
|
2021
|
2020
|
|||||
Issued shares
|
2 403 721 252
|
2 434 420 920
|
2 467 060 920
|
||||
Treasury shares 1
|
284 112 195
|
199 480 972
|
210 238 872
|
||||
Outstanding shares at December 31
|
2 119 609 057
|
2 234 939 948
|
2 256 822 048
|
||||
Weighted average number of shares outstanding
|
2 181 180 341
|
2 242 601 173
|
2 277 041 940
|
||||
1 Approximately 99 million treasury shares (2021: 102 million, 2020: 103 million) are held in Novartis entities that restrict their availability for use.
|
2022
|
2021
|
2020
|
|||||
Basic earnings per share from continuing operations (USD)
|
3.19
|
10.71
|
3.55
|
||||
Diluted earnings per share from continuing operations (USD)
|
3.17
|
10.63
|
3.52
|
||||
Net cash flows from operating activities from continuing operations (USD)
|
6.53
|
6.72
|
5.99
|
||||
Year-end equity for Novartis AG shareholders (USD)
|
28.00
|
30.31
|
25.07
|
||||
Dividend (CHF) 2
|
3.20
|
3.10
|
3.00
|
||||
Dividend (USD) 3
|
3.46
|
3.33
|
3.20
|
||||
1 Calculated on the weighted average number of shares outstanding, except year-end equity
|
|||||||
2 2022: proposal to shareholders for approval at the AGM on March 7, 2023.
|
|||||||
3 Translated into US dollars at the December 31, 2022, rate of USD 1.081 to the Swiss franc. This translation is an example only, and should not be construed as a representation that the Swiss franc amount represents, or has been or could be converted into US dollars at that or any other rate. 2021 and 2020, dividends are translated into US dollars at the Bloomberg Market System Rate on the payment date.
|
2022
|
2021
|
2020
|
|||||
Price/earnings ratio 1
|
28.3
|
8.2
|
26.7
|
||||
Dividend yield (%) 1
|
3.8
|
3.9
|
3.6
|
||||
1 Based on the Novartis share price at December 31 of each year
|
2022
|
2021
|
2020
|
|||||
Year-end ADR price (USD)
|
90.72
|
87.47
|
94.43
|
||||
High 1
|
93.75
|
98.47
|
99.01
|
||||
Low 1
|
74.61
|
79.70
|
70.67
|
||||
Number of ADRs outstanding 2
|
225 435 680
|
269 891 321
|
288 755 853
|
||||
|
|||||||
1 Based on daily closing prices
|
|||||||
2 The depositary, JPMorgan Chase Bank, N.A., holds one Novartis AG share for every ADR issued.
|
2022
|
2021
|
2020
|
|||||
Year-end share price
|
83.59
|
80.28
|
83.65
|
||||
High 1
|
87.82
|
86.75
|
95.82
|
||||
Low 1
|
73.98
|
73.44
|
69.96
|
||||
Year-end market capitalization (USD billions) 2
|
191.5
|
196.1
|
214.3
|
||||
Year-end market capitalization (CHF billions) 2
|
177.2
|
179.4
|
188.8
|
||||
|
|||||||
1 Based on daily closing prices
|
|||||||
2 Market capitalization is calculated based on the number of shares outstanding (excluding treasury shares). Market capitalization in USD is based on the market capitalization in CHF converted at the year-end CHF/USD exchange rate.
|
Shareholder participation
Members of the Board of Directors
Name |
Position |
Board |
Audit and Compliance Committee |
Compensation Committee |
Governance,
Sustainability and Nomination Committee |
Risk Committee |
Science & Technology Committee |
||||||||
J. Reinhardt
|
Board Chair
|
10/10
|
4/4
|
||||||||||||
S. Moroney
|
Vice-Chair
|
10/10
|
7/7
|
4/4
|
|||||||||||
P. Bula
|
Lead Independent Director
|
10/10
|
7/7
|
3/3
|
|||||||||||
N. Andrews
|
Member
|
9/10
|
5/5
|
4/4
|
|||||||||||
T. Buechner
|
Member
|
10/10
|
7/7
|
5/5
|
|||||||||||
E. Doherty
|
Member
|
10/10
|
7/7
|
5/5
|
|||||||||||
B. Heller
|
Member
|
10/10
|
7/7
|
7/7
|
3/3
|
||||||||||
F. van Houten
|
Member
|
10/10
|
7/7
|
3/4
|
|||||||||||
D. Hochstrasser 1
|
Member
|
8/8
|
|||||||||||||
A. von Planta
|
Member
|
10/10
|
3/3
|
5/5
|
|||||||||||
A. de Pro Gonzalo 1
|
Member
|
8/8
|
5/5
|
5/5
|
|||||||||||
C. Sawyers
|
Member
|
10/10
|
3/3
|
4/4
|
|||||||||||
W. Winters
|
Member
|
9/10
|
6/7
|
3/3
|
|||||||||||
1 Ms. de Pro Gonzalo and Mr. Hochstrasser were elected at the 2022 AGM.
|
|||||||||||||||
|
|||||||||||||||
Further details can be found on pages 140 – 145.
|
Maximum number
of mandates |
|||
Mandates
|
10
|
||
Other listed companies 1
|
4
|
||
1 Holding a chair position of the board of directors in other listed companies counts as two mandates.
|
Maximum number
of mandates |
|||
Mandates in companies that are controlled by Novartis AG
|
No limit
|
||
Mandates held at the request of Novartis AG or companies controlled by it
|
5
|
||
Mandates in associations, charitable organizations, foundations, trusts and employee welfare foundations
|
10
|
||
Executive Committee
Maximum number
of mandates |
|||
Mandates
|
6
|
||
Other listed companies 1
|
2
|
||
1 Holding a chair position of the board of directors in other listed companies is not allowed.
|
Maximum number
of mandates |
|||
Mandates in companies that are controlled by Novartis AG
|
No limit
|
||
Mandates held at the request of Novartis AG or companies controlled by it
|
5
|
||
Mandates in associations, charitable organizations, foundations, trusts and employee welfare foundations
|
10
|
||
Members of the Executive Committee
Information and control systems
Auditors
2022
USD million |
2021
USD million |
||||
Audit services
|
22.5
|
22.2
|
|||
Audit-related services
|
0.7
|
1.5
|
|||
Tax services
|
1.2
|
0.1
|
|||
Other services
|
0.0
|
1.4
|
|||
Total
|
24.4
|
25.2
|
|||
|
Information policy
Topic
|
Information
|
||
Share capital
|
Articles of Incorporation of Novartis AG
www.novartis.com/investors/company-overview/corporate-governance Novartis key share data www.novartis.com/investors/share-data-analysis |
||
Shareholder rights
|
Articles of Incorporation of Novartis AG
www.novartis.com/investors/company-overview/corporate-governance |
||
Annual General Meeting of Shareholders
|
Annual General Meeting of Shareholders
www.novartis.com/investors/shareholder-information/annual-general-meeting |
||
Board Regulations
|
Board Regulations
www.novartis.com/investors/company-overview/corporate-governance |
||
Novartis code for senior financial officers
|
Novartis Code of Ethical Conduct for CEO and Senior Financial Officers
www.novartis.com/investors/company-overview/corporate-governance |
||
Novartis in Society Integrated Report
|
Novartis in Society Integrated Report
www.reporting.novartis.com |
||
Novartis financial data
|
Novartis financial data
www.novartis.com/investors/financial-data |
||
Press releases
|
Press releases
www.novartis.com/news/news-archive?type=media_release Email service www.novartis.com/news/stay-up-to-date |
||
Additional information
(including Novartis investor event calendar, registered office, contact and email addresses, phone numbers, etc.) |
Novartis Investor Relations
www.novartis.com/investors |
||
Quiet periods
6.D Employees
For the year ended
December 31, 2022 (full-time equivalents) |
Marketing and sales |
Production and supply |
Research and development |
Operations1 |
General and administration |
Total |
|||||||
USA
|
6 003
|
1 740
|
5 358
|
825
|
599
|
14 525
|
|||||||
Canada and Latin America
|
2 678
|
809
|
514
|
1 071
|
270
|
5 342
|
|||||||
Europe
|
14 078
|
18 781
|
10 483
|
5 028
|
2 483
|
50 853
|
|||||||
Asia/Africa/Australasia
|
15 856
|
3 841
|
4 841
|
5 513
|
932
|
30 983
|
|||||||
Total
|
38 615
|
25 171
|
21 196
|
12 437
|
4 284
|
101 703
|
|||||||
|
|||||||||||||
|
|||||||||||||
For the year ended
December 31, 2021 (full-time equivalents) |
Marketing and sales |
Production and supply |
Research and development |
Operations1 |
General and administration |
Total |
|||||||
USA
|
6 074
|
1 938
|
5 324
|
879
|
654
|
14 869
|
|||||||
Canada and Latin America
|
3 116
|
1 426
|
510
|
1 116
|
370
|
6 538
|
|||||||
Europe
|
15 163
|
17 630
|
10 307
|
5 108
|
2 613
|
50 821
|
|||||||
Asia/Africa/Australasia
|
16 927
|
3 570
|
4 812
|
5 696
|
1 090
|
32 095
|
|||||||
Total
|
41 280
|
24 564
|
20 953
|
12 799
|
4 727
|
104 323
|
|||||||
|
|||||||||||||
|
|||||||||||||
For the year ended
December 31, 2020 (full-time equivalents) |
Marketing and sales |
Production and supply |
Research and development |
Operations1 |
General and administration |
Total |
|||||||
USA
|
5 978
|
2 954
|
5 554
|
636
|
820
|
15 942
|
|||||||
Canada and Latin America
|
3 405
|
1 286
|
504
|
928
|
401
|
6 524
|
|||||||
Europe
|
16 066
|
18 628
|
10 043
|
4 506
|
2 852
|
52 095
|
|||||||
Asia/Africa/Australasia
|
17 240
|
3 346
|
4 537
|
4 991
|
1 119
|
31 233
|
|||||||
Total
|
42 689
|
26 214
|
20 638
|
11 061
|
5 192
|
105 794
|
|||||||
1 relates to full time equivalent employees (FTEs) from our Operations unit, excluding the Operations units’ production and supply FTEs
|
6.E Share ownership
Item 7. Major Shareholders and Related Party Transactions
7.A Major shareholders
% of respective share capital beneficially owned as of:
|
|||||||||
Ordinary shares
beneficially owned as of Dec 31, 2022 |
|
Dec 31, 2022 |
|
Dec 31, 2021 |
|
Dec 31, 2020 |
|||
Shareholders registered for their own account:
|
|||||||||
Emasan AG, Basel, Switzerland
|
89 135 960
|
3.7
|
3.7
|
3.6
|
|||||
UBS Fund Management (Switzerland) AG, Basel, Switzerland
|
55 906 821
|
2.3
|
2.3
|
2.3
|
|||||
Credit Suisse Funds AG, Zurich, Switzerland
|
49 335 879
|
2.1
|
2.1
|
2.0
|
|||||
% of respective share capital held as of:
|
|||||||||
Ordinary shares
held as of Dec 31, 2022 |
Dec 31, 2022 |
Dec 31, 2021 |
Dec 31, 2020 |
||||||
Shareholders registered as nominees:
|
|||||||||
Chase Nominees Ltd., London, England
|
201 853 725
|
8.4
|
8.8
|
9.6
|
|||||
Nortrust Nominees Ltd., London, England
|
90 962 072
|
3.8
|
4.2
|
4.2
|
|||||
The Bank of New York Mellon, New York, NY
|
68 638 910
|
2.9
|
3.0
|
3.4
|
|||||
Through The Bank of New York Mellon, Everett, MA
|
37 227 478
|
1.6
|
1.6
|
1.7
|
|||||
Through The Bank of New York Mellon, New York, NY
|
22 583 699
|
0.9
|
1.1
|
1.2
|
|||||
Through The Bank of New York Mellon, SA/NV, Brussels, Belgium
|
8 827 733
|
0.4
|
0.3
|
0.5
|
|||||
Shareholder acting as American Depositary Share (ADS) depositary:
|
|||||||||
JPMorgan Chase Bank, N.A., New York, NY
|
225 529 101
|
9.4
|
11.1
|
11.7
|
|||||
7.B Related party transactions
7.C Interests of experts and counsel
Item 8. Financial Information
8.A Consolidated statements and other financial information
8.B Significant changes
Item 9. The Offer and Listing
9.A Offer and listing details
9.B Plan of distribution
9.C Markets
9.D Selling shareholders
9.E Dilution
9.F Expenses of the issue
Item 10. Additional Information
10.A Share capital
10.B Memorandum and articles of association
10.C Material contracts
10.D Exchange controls
10.E Taxation
10.F Dividends and paying agents
10.G Statement by experts
10.H Documents on display
10.I Subsidiary information
Item 11. Quantitative and Qualitative Disclosures About Market Risk
Item 12. Description of Securities Other Than Equity Securities
12.A Debt securities
12.B Warrants and rights
12.C Other securities
12.D American Depositary Shares
Category
|
Depositary actions
|
Associated fee
|
|||
Depositing or substituting
underlying shares |
Acceptance of shares surrendered, and issuance of ADRs in exchange,
including surrenders and issuances in respect of: — Share distributions — Stock split — Rights — Merger — Exchange of shares or any other transaction or event or other distribution affecting the ADSs or the deposited shares |
USD 5.00 for each 100 ADSs
(or portion thereof) evidenced by the new ADRs delivered |
|||
Withdrawing
underlying shares |
Acceptance of ADRs surrendered for withdrawal of deposited shares
|
USD 5.00 for each 100 ADSs
(or portion thereof) evidenced by the ADRs surrendered |
|||
Selling or
exercising rights |
Distribution or sale of shares, the fee being in an amount equal to the fee
for the execution and delivery of ADRs that would have been charged as a result of the deposit of such shares |
USD 5.00 for each 100 ADSs
(or portion thereof) |
|||
Transferring,
splitting or grouping receipts |
Transfers, combining or grouping of depositary receipts
|
USD 1.50 per ADR
|
|||
Expenses of the
depositary |
Expenses incurred on behalf of holders in connection with:
— Compliance with foreign exchange control regulations or any law or regulation relating to foreign investment — The depositary’s or its custodian’s compliance with applicable law, rule or regulation — Stock transfer or other taxes and other governmental charges — Cable, telex and facsimile transmission and delivery — Expenses of the depositary in connection with the conversion of foreign currency into US dollars (which are paid out of such foreign currency) — Any other charge payable by any of the depositary or its agents |
Expenses payable at the sole
discretion of the depositary by billing holders or by deducting charges from one or more cash dividends or other cash distributions |
|||
Advance tax relief
|
Tax relief/reclamation process for qualified holders
|
A depositary service charge
of USD 0.008 per ADS |
|||
PART II
Item 13. Defaults, Dividend Arrearages and Delinquencies
Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds
Item 15. Controls and Procedures
Item 16A. Audit Committee Financial Expert
Item 16B. Code of Ethics
Item 16C. Principal Accountant Fees and Services
Item 16D. Exemptions from the Listing Standards for Audit Committees
Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers
2022 |
Total number of shares purchased (a)1 |
Average price paid per share in USD (b) |
Total number of shares purchased as part of publicly announced plans or programs (c)2 |
Maximum
approximate value of shares that may yet be purchased under the plans or programs (CHF millions) (d) |
Maximum
approximate value of shares that may yet be purchased under the plans or programs (USD millions) (e)3 |
||||||
Jan. 1-31
|
10 746 816
|
87.76
|
9 773 500
|
7 831
|
8 405
|
||||||
Feb. 1-28
|
10 160 538
|
86.73
|
10 000 000
|
7 030
|
7 594
|
||||||
Mar. 1-31
|
11 494 338
|
85.43
|
11 470 000
|
16 119
|
17 451
|
||||||
Apr. 1-30
|
9 534 769
|
90.61
|
9 500 000
|
15 305
|
15 756
|
||||||
May 1-31
|
10 521 350
|
88.04
|
10 500 000
|
14 399
|
14 996
|
||||||
Jun. 1-30
|
10 524 101
|
84.79
|
10 500 000
|
13 535
|
14 164
|
||||||
Jul. 1-31
|
10 525 453
|
85.10
|
10 500 000
|
12 670
|
13 329
|
||||||
Aug. 1-31
|
11 045 776
|
84.91
|
11 000 000
|
11 775
|
12 098
|
||||||
Sep. 1-30
|
11 035 057
|
79.65
|
11 000 000
|
10 922
|
11 172
|
||||||
Oct. 1-31
|
10 524 526
|
77.45
|
10 500 000
|
10 113
|
10 118
|
||||||
Nov. 1-30
|
11 021 724
|
84.64
|
11 000 000
|
9 216
|
9 675
|
||||||
Dec. 1-31
|
10 520 012
|
91.17
|
10 500 000
|
8 324
|
8 999
|
||||||
|
|||||||||||
Total
|
127 654 460
|
85.45
|
126 243 500
|
||||||||
1 Column (a) shows shares repurchased on the SIX Swiss Exchange second trading line plus shares we purchased from employees who had obtained the shares through a Novartis Employee Ownership Plan. See "Item 18. Financial Statements - Note 26 Equity-based participation plans for employees."
|
|||||||||||
2 Column (c) shows shares repurchased on the SIX Swiss Exchange second trading line under the CHF 10 billion share buyback authority approved at the 2021 AGM and under the additional CHF 10 billion share buyback authority approved at the 2022 AGM for transactions in 2022. See "Item 6. Directors, Senior Management and Employees - Item 6C. Board Practices - Our capital structure - Changes in capital."
|
|||||||||||
3 Column (e) shows the Swiss franc amount from column (d) converted into US dollars as of the month-end, using the Swiss franc/US dollar exchange rate at the applicable month-end
|
Item 16F. Change in Registrant’s Certifying Accountant
Item 16G. Corporate Governance
Item 16H. Mine Safety Disclosure
Item 16I. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
PART III
Item 17. Financial Statements
Item 18. Financial Statements
Item 19. Exhibits
SIGNATURES
Novartis Group consolidated financial statements
(USD millions unless indicated otherwise)
|
Note
|
2022
|
2021
|
2020
|
|||||
Net sales to third parties
|
3
|
|
|
|
|||||
Other revenues
|
3
|
|
|
|
|||||
Cost of goods sold
|
-
|
-
|
-
|
||||||
Gross profit
|
|
|
|
||||||
Selling, general and administration
|
-
|
-
|
-
|
||||||
Research and development
|
-
|
-
|
-
|
||||||
Other income
|
|
|
|
||||||
Other expense
|
-
|
-
|
-
|
||||||
Operating income
|
|
|
|
||||||
(Loss)/income from associated companies
|
4
|
-
|
|
|
|||||
Interest expense
|
5
|
-
|
-
|
-
|
|||||
Other financial income and expense
|
5
|
|
-
|
-
|
|||||
Income before taxes
|
|
|
|
||||||
Income taxes
|
6
|
-
|
-
|
-
|
|||||
Net income
|
|
|
|
||||||
Attributable to:
|
|||||||||
Shareholders of Novartis AG
|
|
|
|
||||||
Non-controlling interests
|
|
-
|
-
|
||||||
|
|||||||||
Basic earnings per share (USD)
|
7
|
|
|
|
|||||
|
|||||||||
Diluted earnings per share (USD)
|
7
|
|
|
|
|||||
The accompanying Notes form an integral part of the consolidated financial statements.
|
(USD millions)
|
Note
|
2022
|
2021
|
2020
|
|||||
Net income
|
|
|
|
||||||
|
|||||||||
Other comprehensive income
|
|||||||||
Items that are or may be recycled into the consolidated income statement
|
|||||||||
Novartis share of other comprehensive income recognized by associated companies, net of taxes
|
4
|
|
-
|
||||||
Net investment hedge, net of taxes
|
8
|
|
|
-
|
|||||
Currency translation effects, net of taxes
|
8
|
-
|
-
|
|
|||||
Total of items that are or may be recycled
|
-
|
-
|
|
||||||
|
|||||||||
Items that will never be recycled into the consolidated income statement
|
|||||||||
Actuarial (losses)/gains from defined benefit plans, net of taxes
|
8
|
-
|
|
|
|||||
Fair value adjustments on equity securities, net of taxes
|
8
|
-
|
|
|
|||||
Total of items that will never be recycled
|
-
|
|
|
||||||
|
|||||||||
Total comprehensive income
|
|
|
|
||||||
Attributable to:
|
|||||||||
Shareholders of Novartis AG
|
|
|
|
||||||
Non-controlling interests
|
-
|
-
|
-
|
||||||
The accompanying Notes form an integral part of the consolidated financial statements.
|
(USD millions)
|
Note
|
2022
|
2021
|
||||
Assets
|
|||||||
Non-current assets
|
|||||||
Property, plant and equipment
|
9
|
|
|
||||
Right-of-use assets
|
10
|
|
|
||||
Goodwill
|
11
|
|
|
||||
Intangible assets other than goodwill
|
11
|
|
|
||||
Investments in associated companies
|
4
|
|
|
||||
Deferred tax assets
|
12
|
|
|
||||
Financial assets
|
13
|
|
|
||||
Other non-current assets
|
13
|
|
|
||||
Total non-current assets
|
|
|
|||||
Current assets
|
|||||||
Inventories
|
14
|
|
|
||||
Trade receivables
|
15
|
|
|
||||
Income tax receivables
|
|
|
|||||
Marketable securities, commodities, time deposits and derivative financial instruments
|
16
|
|
|
||||
Cash and cash equivalents
|
16
|
|
|
||||
Other current assets
|
17
|
|
|
||||
Total current assets
|
|
|
|||||
Total assets
|
|
|
|||||
|
|||||||
Equity and liabilities
|
|||||||
Equity
|
|||||||
Share capital
|
18
|
|
|
||||
Treasury shares
|
18
|
-
|
-
|
||||
Reserves
|
|
|
|||||
Equity attributable to Novartis AG shareholders
|
|
|
|||||
Non-controlling interests
|
|
|
|||||
Total equity
|
|
|
|||||
Liabilities
|
|||||||
Non-current liabilities
|
|||||||
Financial debts
|
19
|
|
|
||||
Lease liabilities
|
10
|
|
|
||||
Deferred tax liabilities
|
12
|
|
|
||||
Provisions and other non-current liabilities
|
20
|
|
|
||||
Total non-current liabilities
|
|
|
|||||
Current liabilities
|
|||||||
Trade payables
|
|
|
|||||
Financial debts and derivative financial instruments
|
21
|
|
|
||||
Lease liabilities
|
10
|
|
|
||||
Current income tax liabilities
|
|
|
|||||
Provisions and other current liabilities
|
22
|
|
|
||||
Total current liabilities
|
|
|
|||||
Total liabilities
|
|
|
|||||
Total equity and liabilities
|
|
|
|||||
The accompanying Notes form an integral part of the consolidated financial statements.
|
Reserves
|
|||||||||||||||||
(USD millions) |
Note |
Share capital |
Treasury shares |
Retained earnings |
Total value adjustments |
Equity
attributable to Novartis shareholders |
Non- controlling interests |
Total equity |
|||||||||
Total equity at January 1, 2020
|
|
-
|
|
-
|
|
|
|
||||||||||
Net income
|
|
|
-
|
|
|||||||||||||
Other comprehensive income
|
8
|
-
|
|
|
-
|
|
|||||||||||
Total comprehensive income
|
|
|
|
-
|
|
||||||||||||
Dividends
|
18.1
|
-
|
-
|
-
|
|||||||||||||
Purchase of treasury shares
|
18.2
|
-
|
-
|
-
|
-
|
||||||||||||
Reduction of share capital
|
18
|
-
|
|
-
|
|||||||||||||
Exercise of options and employee transactions
|
18.2
|
|
|
|
|
||||||||||||
Repurchase of options
|
18.4
|
-
|
-
|
-
|
|||||||||||||
Equity-based compensation
|
18.2
|
|
|
|
|
||||||||||||
Shares delivered to Alcon employees as a result of the Alcon spin-off
|
18.2
|
|
|
|
|
||||||||||||
Taxes on treasury share transactions
|
|
|
|
||||||||||||||
Increase of treasury share repurchase obligation under a share buyback trading plan
|
18.3
|
-
|
-
|
-
|
|||||||||||||
Fair value adjustments on financial assets sold
|
8
|
|
-
|
||||||||||||||
Value adjustments related to divestments
|
8
|
-
|
|
||||||||||||||
Impact of change in ownership of consolidated entities
|
18.5
|
|
-
|
|
-
|
-
|
|||||||||||
Other movements
|
18.7
|
|
|
|
|||||||||||||
Total of other equity movements
|
-
|
|
-
|
-
|
-
|
-
|
-
|
||||||||||
Total equity at December 31, 2020
|
|
-
|
|
-
|
|
|
|
||||||||||
Net income
|
|
|
-
|
|
|||||||||||||
Other comprehensive income
|
8
|
|
-
|
-
|
-
|
-
|
|||||||||||
Total comprehensive income
|
|
-
|
|
-
|
|
||||||||||||
Dividends
|
18.1
|
-
|
-
|
-
|
|||||||||||||
Purchase of treasury shares
|
18.2
|
-
|
-
|
-
|
-
|
||||||||||||
Reduction of share capital
|
18
|
-
|
|
-
|
|||||||||||||
Exercise of options and employee transactions
|
18.2
|
|
|
|
|
||||||||||||
Equity-based compensation
|
18.2
|
|
|
|
|
||||||||||||
Shares delivered to Alcon employees as a result of the Alcon spin-off
|
18.2
|
|
|
|
|
||||||||||||
Taxes on treasury share transactions
|
|
|
|
||||||||||||||
Increase of treasury share repurchase obligation under a share buyback trading plan
|
18.3
|
-
|
-
|
-
|
|||||||||||||
Transaction costs, net of taxes
|
18.8
|
|
|
|
|||||||||||||
Changes in non-controlling interests
|
18.6
|
-
|
-
|
||||||||||||||
Fair value adjustments on financial assets sold
|
8
|
|
-
|
||||||||||||||
Value adjustments related to divestments
|
8
|
|
-
|
||||||||||||||
Impact of change in ownership of consolidated entities
|
18.5
|
-
|
|
-
|
|
|
|||||||||||
Other movements
|
18.7
|
|
|
|
|||||||||||||
Total of other equity movements
|
-
|
|
-
|
-
|
-
|
|
-
|
||||||||||
Total equity at December 31, 2021
|
|
-
|
|
-
|
|
|
|
||||||||||
Net income
|
|
|
|
|
|||||||||||||
Other comprehensive income
|
8
|
-
|
-
|
-
|
-
|
||||||||||||
Total comprehensive income
|
|
-
|
|
-
|
|
||||||||||||
Dividends
|
18.1
|
-
|
-
|
-
|
|||||||||||||
Purchase of treasury shares
|
18.2
|
-
|
-
|
-
|
-
|
||||||||||||
Reduction of share capital
|
18
|
-
|
|
-
|
|||||||||||||
Exercise of options and employee transactions
|
18.2
|
|
|
|
|
||||||||||||
Equity-based compensation
|
18.2
|
|
|
|
|
||||||||||||
Shares delivered to Alcon employees as a result of the Alcon spin-off
|
18.2
|
|
|
|
|
||||||||||||
Taxes on treasury share transactions
|
|
|
|
||||||||||||||
Decrease of treasury share repurchase obligation under a share buyback trading plan
|
18.3
|
|
|
|
|||||||||||||
Changes in non-controlling interests
|
18.6
|
-
|
-
|
||||||||||||||
Fair value adjustments on financial assets sold
|
8
|
|
-
|
||||||||||||||
Value adjustments related to divestments
|
8
|
-
|
|
||||||||||||||
Other movements
|
18.7
|
|
|
|
|||||||||||||
Total of other equity movements
|
-
|
-
|
-
|
|
-
|
-
|
-
|
||||||||||
Total equity at December 31, 2022
|
|
-
|
|
-
|
|
|
|
||||||||||
The accompanying Notes form an integral part of the consolidated financial statements.
|
(USD millions)
|
Note
|
2022
|
2021
|
2020
|
|||||
Net income
|
|
|
|
||||||
Adjustments to reconcile net income to net cash flows from operating activities
|
|||||||||
Reversal of non-cash items and other adjustments
|
23.1
|
|
-
|
|
|||||
Dividends received from associated companies and others
|
|
|
|
||||||
Interest received
|
|
|
|
||||||
Interest paid
|
-
|
-
|
-
|
||||||
Other financial receipts
|
|
|
|||||||
Other financial payments
|
-
|
-
|
-
|
||||||
Income taxes paid
|
23.2
|
-
|
-
|
-
|
|||||
Net cash flows from operating activities before working capital and provision changes
|
|
|
|
||||||
Payments out of provisions and other net cash movements in non-current liabilities
|
-
|
-
|
-
|
||||||
Change in net current assets and other operating cash flow items
|
23.3
|
-
|
|
-
|
|||||
Net cash flows from operating activities
|
|
|
|
||||||
Purchases of property, plant and equipment
|
-
|
-
|
-
|
||||||
Proceeds from sale of property, plant and equipment
|
|
|
|
||||||
Purchases of intangible assets
|
-
|
-
|
-
|
||||||
Proceeds from sale of intangible assets
|
|
|
|
||||||
Purchases of financial assets
|
-
|
-
|
-
|
||||||
Proceeds from sale of financial assets
|
|
|
|
||||||
Purchases of other non-current assets
|
-
|
-
|
-
|
||||||
Proceeds from sale of other non-current assets
|
|
|
|||||||
Acquisitions and divestments of interests in associated companies, net
|
23.4
|
-
|
|
-
|
|||||
Acquisitions and divestments of businesses, net
|
23.5
|
-
|
-
|
-
|
|||||
Purchases of marketable securities, commodities and time deposits
|
-
|
-
|
-
|
||||||
Proceeds from sale of marketable securities, commodities and time deposits
|
|
|
|
||||||
Net cash flows from/(used in) investing activities from continuing operations
|
|
|
-
|
||||||
Net cash flows used in investing activities from discontinued operations
|
23.7
|
-
|
|||||||
Net cash flows from/(used in) investing activities
|
|
|
-
|
||||||
Dividends paid to shareholders of Novartis AG
|
-
|
-
|
-
|
||||||
Acquisitions of treasury shares
|
-
|
-
|
-
|
||||||
Proceeds from exercised options and other treasury share transactions, net
|
|
|
|
||||||
Increase in non-current financial debts
|
23.6
|
|
|
|
|||||
Repayments of the current portion of non-current financial debts
|
23.6
|
-
|
-
|
-
|
|||||
Change in current financial debts
|
23.6
|
|
-
|
|
|||||
Payments of lease liabilities
|
23.6
|
-
|
-
|
-
|
|||||
Impact of change in ownership of consolidated entities
|
-
|
-
|
|||||||
Other financing cash flows, net
|
|
|
-
|
||||||
Net cash flows used in financing activities from continuing operations
|
-
|
-
|
-
|
||||||
Net cash flows used in financing activities from discontinued operations
|
23.7
|
-
|
|||||||
Net cash flows used in financing activities
|
-
|
-
|
-
|
||||||
Net change in cash and cash equivalents before effect of exchange rate changes
|
-
|
|
-
|
||||||
Effect of exchange rate changes on cash and cash equivalents
|
-
|
-
|
|
||||||
Net change in cash and cash equivalents
|
-
|
|
-
|
||||||
Cash and cash equivalents at January 1
|
|
|
|
||||||
Cash and cash equivalents at December 31
|
|
|
|
||||||
The accompanying Notes form an integral part of the consolidated financial statements.
|
Notes to the Novartis Group consolidated financial statements
Useful life
|
|||
Buildings
|
20 to 40 years
|
||
Machinery and other equipment
|
|||
Machinery and equipment
|
7 to 20 years
|
||
Furniture and vehicles
|
5 to 10 years
|
||
Computer hardware
|
3 to 7 years
|
||
Useful life |
Income statement line
for amortization and impairment charges |
||||
Currently marketed products
|
5 to 20 years
|
"Cost of goods sold"
|
|||
Technologies
|
10 to 20 years
|
"Cost of goods sold" or "Research and development"
|
|||
Other (including software)
|
3 to 12 years
|
In the relevant functional expense
|
|||
Innovative Medicines
|
Sandoz
|
Corporate (including eliminations)1
|
Group
|
||||||||||||||
(USD millions)
|
2022
|
2021
|
2022
|
2021
|
2022
|
2021
|
2022
|
2021
|
|||||||||
Net sales to third parties
|
|
|
|
|
|
|
|||||||||||
Sales to other segments
|
|
|
|
|
-
|
-
|
|||||||||||
Net sales
|
|
|
|
|
-
|
-
|
|
|
|||||||||
Other revenues
|
|
|
|
|
|
|
|
|
|||||||||
Cost of goods sold
|
-
|
-
|
-
|
-
|
|
|
-
|
-
|
|||||||||
Gross profit
|
|
|
|
|
|
|
|
|
|||||||||
Selling, general and administration
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||
Research and development
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Other income
|
|
|
|
|
|
|
|
|
|||||||||
Other expense
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||
Operating income
|
|
|
|
|
-
|
-
|
|
|
|||||||||
(Loss)/income from associated companies
|
-
|
|
|
|
-
|
|
-
|
|
|||||||||
Interest expense
|
-
|
-
|
|||||||||||||||
Other financial income and expense
|
|
-
|
|||||||||||||||
Income before taxes
|
|
|
|||||||||||||||
Income taxes
|
-
|
-
|
|||||||||||||||
Net income
|
|
|
|||||||||||||||
Attributable to:
|
|||||||||||||||||
Shareholders of Novartis AG
|
|
|
|||||||||||||||
Non-controlling interests
|
|
-
|
|||||||||||||||
|
|||||||||||||||||
Included in net income are:
|
|||||||||||||||||
Interest income
|
|
|
|||||||||||||||
Depreciation of property, plant and equipment
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||
Depreciation of right-of-use assets
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||
Amortization of intangible assets
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||
Impairment charges on property, plant and equipment, net
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Impairment of right-of-use assets
|
-
|
-
|
|||||||||||||||
Impairment charges on intangible assets, net
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||
Impairment charges and fair value changes on financial assets, net
|
-
|
|
-
|
-
|
-
|
|
|||||||||||
Additions to restructuring provisions
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||
Equity-based compensation of Novartis equity plans
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||
|
|||||||||||||||||
1 Eliminations mainly relate to the elimination of sales to other segments and the corresponding cost of goods sold.
|
|||||||||||||||||
|
Innovative Medicines
|
Sandoz
|
Corporate (including eliminations)1
|
Group
|
||||||||||||||
(USD millions)
|
2021
|
2020
|
2021
|
2020
|
2021
|
2020
|
2021
|
2020
|
|||||||||
Net sales to third parties
|
|
|
|
|
|
|
|||||||||||
Sales to other segments
|
|
|
|
|
-
|
-
|
|||||||||||
Net sales
|
|
|
|
|
-
|
-
|
|
|
|||||||||
Other revenues
|
|
|
|
|
|
|
|
|
|||||||||
Cost of goods sold
|
-
|
-
|
-
|
-
|
|
|
-
|
-
|
|||||||||
Gross profit
|
|
|
|
|
|
|
|
|
|||||||||
Selling, general and administration
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||
Research and development
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Other income
|
|
|
|
|
|
|
|
|
|||||||||
Other expense
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||
Operating income
|
|
|
|
|
-
|
-
|
|
|
|||||||||
Income from associated companies
|
|
|
|
|
|
|
|
|
|||||||||
Interest expense
|
-
|
-
|
|||||||||||||||
Other financial income and expense
|
-
|
-
|
|||||||||||||||
Income before taxes
|
|
|
|||||||||||||||
Income taxes
|
-
|
-
|
|||||||||||||||
Net income
|
|
|
|||||||||||||||
Attributable to:
|
|||||||||||||||||
Shareholders of Novartis AG
|
|
|
|||||||||||||||
Non-controlling interests
|
-
|
-
|
|||||||||||||||
|
|||||||||||||||||
Included in net income are:
|
|||||||||||||||||
Interest income
|
|
|
|||||||||||||||
Depreciation of property, plant and equipment
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||
Depreciation of right-of-use assets
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||
Amortization of intangible assets
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||
Impairment charges on property, plant and equipment, net
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||
Impairment charges on intangible assets, net
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||
Impairment charges and fair value changes on financial assets, net
|
|
|
-
|
|
|
|
|||||||||||
Additions to restructuring provisions
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||
Equity-based compensation of Novartis equity plans
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||
1 Eliminations mainly relate to the elimination of sales to other segments and the corresponding cost of goods sold.
|
|||||||||||||||||
|
Innovative Medicines
|
Sandoz
|
Corporate (including eliminations)1
|
Group
|
||||||||||||||
(USD millions)
|
2022
|
2021
|
2022
|
2021
|
2022
|
2021
|
2022
|
2021
|
|||||||||
Total assets
|
|
|
|
|
|
|
|
|
|||||||||
Total liabilities
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||
Total equity
|
|
|
|||||||||||||||
Net debt 2
|
|
|
|
|
|||||||||||||
Net operating assets
|
|
|
|
|
-
|
-
|
|
|
|||||||||
|
|||||||||||||||||
Included in assets and liabilities are:
|
|||||||||||||||||
Total property, plant and equipment
|
|
|
|
|
|
|
|
|
|||||||||
Additions to property, plant and equipment 3
|
|
|
|
|
|
|
|
|
|||||||||
Total right-of-use assets
|
|
|
|
|
|
|
|
|
|||||||||
Additions to right-of-use assets 3
|
|
|
|
|
|
|
|
|
|||||||||
Total goodwill and intangible assets
|
|
|
|
|
|
|
|
|
|||||||||
Additions to goodwill and intangible assets 3
|
|
|
|
|
|
|
|
|
|||||||||
Total investment in associated companies
|
|
|
|
|
|
|
|
|
|||||||||
Additions to investment in associated companies
|
|
|
|
|
|
|
|||||||||||
Cash and cash equivalents, marketable securities, commodities, time deposits and derivative financial instruments
|
|
|
|
|
|||||||||||||
Financial debts and derivative financial instruments
|
|
|
|
|
|||||||||||||
Current income tax liabilities and deferred tax liabilities
|
|
|
|
|
|||||||||||||
1 Eliminations mainly relate to the elimination of intercompany receivables and payables to other segments and inventories
|
|||||||||||||||||
2 Note 29 provides additional disclosures related to net debt
|
|||||||||||||||||
3 Excluding the impact of business acquisitions
|
Net sales to third parties1
|
Total of selected non-current assets2
|
||||||||||||||||||||
(USD millions)
|
2022
|
%
|
2021
|
%
|
2020
|
%
|
2022
|
%
|
2021
|
%
|
|||||||||||
Country
|
|||||||||||||||||||||
Switzerland
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
United States
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
France
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Germany
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
China
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Japan
|
|
|
|
|
|
|
|
|
|||||||||||||
Other
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Group
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|||||||||||||||||||||
Region
|
|||||||||||||||||||||
Europe
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Americas
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Asia/Africa/Australasia
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Group
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|||||||||||||||||||||
1 Net sales to third parties by location of customer
|
|||||||||||||||||||||
2 Total of property, plant and equipment; right-of-use assets; goodwill; intangible assets; investment in associated companies and other non-current assets excluding post-employment benefit assets
|
2022 USD m |
2021 USD m |
Change
(2021 to 2022) USD % |
2020 USD m |
Change
(2020 to 2021) USD % |
|||||||
Innovative Medicines
|
|||||||||||
Europe
|
|
|
-
|
|
|
||||||
US
|
|
|
|
|
|
||||||
Asia/Africa/Australasia
|
|
|
-
|
|
|
||||||
Canada and Latin America
|
|
|
|
|
|
||||||
Total
|
|
|
-
|
|
|
||||||
Of which in Established Markets
|
|
|
-
|
|
|
||||||
Of which in Emerging Growth Markets
|
|
|
|
|
|
||||||
|
|||||||||||
Sandoz
|
|||||||||||
Europe
|
|
|
-
|
|
|
||||||
US
|
|
|
-
|
|
-
|
||||||
Asia/Africa/Australasia
|
|
|
-
|
|
|
||||||
Canada and Latin America
|
|
|
|
|
|
||||||
Total
|
|
|
-
|
|
|
||||||
Of which in Established Markets
|
|
|
-
|
|
-
|
||||||
Of which in Emerging Growth Markets
|
|
|
|
|
|
||||||
|
|||||||||||
Group
|
|||||||||||
Europe
|
|
|
-
|
|
|
||||||
US
|
|
|
|
|
|
||||||
Asia/Africa/Australasia
|
|
|
-
|
|
|
||||||
Canada and Latin America
|
|
|
|
|
|
||||||
Total
|
|
|
-
|
|
|
||||||
Of which in Established Markets
|
|
|
-
|
|
|
||||||
Of which in Emerging Growth Markets
|
|
|
|
|
|
||||||
1 Net sales to third parties by location of customer. Emerging Growth Markets comprise all markets other than the Established Markets of the US, Canada, Western Europe, Japan, Australia and New Zealand.
|
|||||||||||
|
2022 USD m |
2021 USD m1 |
Change
(2021 to 2022) USD % |
2020 USD m1 |
Change
(2020 to 2021) USD % |
|||||||
Cardiovascular
|
|||||||||||
Entresto
|
|
|
|
|
|
||||||
Leqvio
|
|
|
nm
|
nm
|
|||||||
Total Cardiovascular
|
|
|
|
|
|
||||||
|
|||||||||||
Immunology
|
|||||||||||
Cosentyx
|
|
|
|
|
|
||||||
Xolair 2
|
|
|
-
|
|
|
||||||
Ilaris
|
|
|
|
|
|
||||||
Other
|
|
nm
|
nm
|
||||||||
Total Immunology
|
|
|
|
|
|
||||||
|
|||||||||||
Neuroscience
|
|||||||||||
Gilenya
|
|
|
-
|
|
-
|
||||||
Zolgensma
|
|
|
|
|
|
||||||
Kesimpta
|
|
|
|
|
nm
|
||||||
Mayzent
|
|
|
|
|
|
||||||
Aimovig
|
|
|
|
|
|
||||||
Other
|
|
|
|
nm
|
|||||||
Total Neuroscience
|
|
|
|
|
|
||||||
Solid Tumors
|
|||||||||||
Tafinlar + Mekinist
|
|
|
|
|
|
||||||
Kisqali
|
|
|
|
|
|
||||||
Votrient
|
|
|
-
|
|
-
|
||||||
Lutathera
|
|
|
-
|
|
|
||||||
Piqray
|
|
|
|
|
|
||||||
Pluvicto
|
|
nm
|
|
nm
|
|||||||
Tabrecta
|
|
|
|
|
|
||||||
Total Solid Tumors
|
|
|
|
|
|
||||||
|
|||||||||||
Hematology
|
|||||||||||
Promacta/Revolade
|
|
|
|
|
|
||||||
Tasigna
|
|
|
-
|
|
|
||||||
Jakavi
|
|
|
-
|
|
|
||||||
Kymriah
|
|
|
-
|
|
|
||||||
Adakveo
|
|
|
|
|
|
||||||
Scemblix
|
|
|
nm
|
nm
|
|||||||
Other
|
|
|
|
|
-
|
||||||
Total Hematology
|
|
|
|
|
|
||||||
2022 USD m |
2021 USD m1 |
Change
(2021 to 2022) USD % |
2020 USD m1 |
Change
(2020 to 2021) USD % |
|||||||
Other Promoted Brands
|
|||||||||||
Lucentis
|
|
|
-
|
|
|
||||||
Xiidra
|
|
|
|
|
|
||||||
Ultibro Group
|
|
|
-
|
|
-
|
||||||
Beovu
|
|
|
|
|
-
|
||||||
Other respiratory
|
|
|
|
|
|
||||||
Total Other Promoted Brands
|
|
|
-
|
|
|
||||||
|
|||||||||||
Total Promoted Brands
|
|
|
|
|
|
||||||
|
|||||||||||
Established Brands
|
|||||||||||
Sandostatin
|
|
|
-
|
|
-
|
||||||
Galvus Group
|
|
|
-
|
|
-
|
||||||
Gleevec/Glivec
|
|
|
-
|
|
-
|
||||||
Exforge Group
|
|
|
-
|
|
-
|
||||||
Diovan Group
|
|
|
-
|
|
-
|
||||||
Afinitor/Votubia
|
|
|
-
|
|
-
|
||||||
Voltaren/Cataflam
|
|
|
-
|
|
|
||||||
Zortress/Certican
|
|
|
-
|
|
-
|
||||||
Exjade/Jadenu
|
|
|
-
|
|
-
|
||||||
Neoral/Sandimmun(e)
|
|
|
-
|
|
-
|
||||||
Contract manufacturing
|
|
|
|
nm
|
|||||||
Other
|
|
|
-
|
|
-
|
||||||
Total Established Brands
|
|
|
-
|
|
-
|
||||||
|
|||||||||||
Total division net sales to third parties
|
|
|
-
|
|
|
||||||
1 Reclassified to reflect the new Innovative Medicines divisional structures announced on April 4, 2022
|
|||||||||||
2 Net sales to third parties reflect Xolair sales for all indications.
|
|||||||||||
|
Brands |
Brand classification by
therapeutic area, other promoted brands or established brands |
Key indications |
US USD m |
Rest of world USD m |
Total USD m |
||||||
Cosentyx
|
Immunology
|
Psoriasis (PsO), ankylosing spondylitis (AS), psoriatic arthritis (PsA), non-radiographic axial spondyloarthritis (nr-axSPA)
|
|
|
|
||||||
Entresto
|
Cardiovascular
|
Chronic heart failure, hypertension
|
|
|
|
||||||
Promacta/Revolade
|
Hematology
|
Immune thrombocytopenia (ITP), severe aplastic anemia (SAA)
|
|
|
|
||||||
Gilenya
|
Neuroscience
|
Relapsing multiple sclerosis (RMS)
|
|
|
|
||||||
Tasigna
|
Hematology
|
Chronic myeloid leukemia (CML)
|
|
|
|
||||||
Lucentis
|
Other Promoted Brands
|
Age-related macular degeneration (AMD), diabetic macular edema (DME), retinal vein occlusion (RVO)
|
|
|
|||||||
Tafinlar + Mekinist
|
Solid Tumors
|
BRAF V600+ metastatic adjuvant melanoma, advanced non-small cell lung cancer (NSCLC), tumor agnostic with BRAF mutation indication
|
|
|
|
||||||
Jakavi
|
Hematology
|
Myelofibrosis (MF), polycytomia vera (PV), graft-versus-host disease (GvHD)
|
|
|
|||||||
Zolgensma
|
Neuroscience
|
Spinal muscular atrophy (SMA)
|
|
|
|
||||||
Xolair 1
|
Immunology
|
Severe allergic asthma (SAA), chronic spontaneous urticaria (CSU), nasal polyps
|
|
|
|||||||
Sandostatin
|
Established Brands
|
Carcinoid tumors, acromegaly
|
|
|
|
||||||
Kisqali
|
Solid Tumors
|
HR+/HER2- metastatic breast cancer
|
|
|
|
||||||
Ilaris
|
Immunology
|
Auto-inflammatory (CAPS, TRAPS, HIDS/MKD, FMF, SJIA, AOSD, gout)
|
|
|
|
||||||
Kesimpta
|
Neuroscience
|
Relapsing-remitting multiple sclerosis (RRMS)
|
|
|
|
||||||
Galvus Group
|
Established Brands
|
Type 2 diabetes
|
|
|
|||||||
Gleevec/Glivec
|
Established Brands
|
Chronic myeloid leukemia (CML), gastrointestinal stromal tumors (GIST)
|
|
|
|
||||||
Exforge Group
|
Established Brands
|
Hypertension
|
|
|
|
||||||
Diovan Group
|
Established Brands
|
Hypertension
|
|
|
|
||||||
Kymriah
|
Hematology
|
r/r pediatric and young adults acute lymphoblastic leukemia (ALL), diffuse large B-cell lymphoma (DLBCL), follicular lymphoma (FL)
|
|
|
|
||||||
Afinitor/Votubia
|
Established Brands
|
Breast cancer/ tuberous sclerosis complex (TSC)
|
|
|
|
||||||
Top 20 brands total
|
|
|
|
||||||||
Rest of portfolio
|
|
|
|
||||||||
Total division net sales to third parties
|
|
|
|
||||||||
1 Net sales to third parties reflect Xolair sales for all indications.
|
Brands |
Brand classification by
therapeutic area, other promoted brands or established brands1 |
Key indications |
US USD m |
Rest of world USD m |
Total USD m |
||||||
Cosentyx
|
Immunology
|
Psoriasis (PsO), ankylosing spondylitis (AS), psoriatic arthritis (PsA), non-radiographic axial spondyloarthritis (nr-axSPA)
|
|
|
|
||||||
Entresto
|
Cardiovascular
|
Chronic heart failure
|
|
|
|
||||||
Gilenya
|
Neuroscience
|
Relapsing multiple sclerosis (RMS)
|
|
|
|
||||||
Lucentis
|
Other Promoted Brands
|
Age-related macular degeneration (AMD)
|
|
|
|||||||
Tasigna
|
Hematology
|
Chronic myeloid leukemia (CML)
|
|
|
|
||||||
Promacta/Revolade
|
Hematology
|
Immune thrombocytopenia (ITP), severe aplastic anemia (SAA)
|
|
|
|
||||||
Tafinlar + Mekinist
|
Solid Tumors
|
BRAF V600+ metastatic adjuvant melanoma, advanced non-small cell lung cancer (NSCLC)
|
|
|
|
||||||
Jakavi
|
Hematology
|
Myelofibrosis (MF), polycythemia vera (PV)
|
|
|
|||||||
Xolair 2
|
Immunology
|
Severe allergic asthma (SAA), chronic spontaneous urticaria (CSU), nasal polyps
|
|
|
|||||||
Sandostatin
|
Established Brands
|
Carcinoid tumors, acromegaly
|
|
|
|
||||||
Zolgensma
|
Neuroscience
|
Spinal muscular atrophy (SMA)
|
|
|
|
||||||
Galvus Group
|
Established Brands
|
Type 2 diabetes
|
|
|
|||||||
Ilaris
|
Immunology
|
Auto-inflammatory (CAPS, TRAPS, HIDS/MKD, FMF, SJIA, AOSD, gout)
|
|
|
|
||||||
Gleevec/Glivec
|
Established Brands
|
Chronic myeloid leukemia (CML), gastrointestinal stromal tumors (GIST)
|
|
|
|
||||||
Afinitor/Votubia
|
Established Brands
|
Breast cancer/ tuberous sclerosis complex (TSC)
|
|
|
|
||||||
Kisqali
|
Solid Tumors
|
HR+/HER2- metastatic breast cancer
|
|
|
|
||||||
Exforge Group
|
Established Brands
|
Hypertension
|
|
|
|
||||||
Diovan Group
|
Established Brands
|
Hypertension
|
|
|
|
||||||
Kymriah
|
Hematology
|
r/r pediatric and young adults acute lymphoblastic leukemia (ALL), diffuse large B-cell lymphoma (DLBCL)
|
|
|
|
||||||
Ultibro Group
|
Other Promoted Brands
|
Cronic obstructive pulmonary disease (COPD)
|
|
|
|||||||
Top 20 products total
|
|
|
|
||||||||
Rest of portfolio
|
|
|
|
||||||||
Total division net sales to third parties
|
|
|
|
||||||||
1 Brand classifications have been changed to reflect the new Innovative Medicines divisional structures announced on April 4, 2022.
|
|||||||||||
2 Net sales to third parties reflect Xolair sales for all indications.
|
Brands |
Brand classification by
therapeutic area, other promoted brands or established brands1 |
Key indications |
US USD m |
Rest of world USD m |
Total USD m |
||||||
Cosentyx
|
Immunology
|
Psoriasis (PsO), ankylosing spondylitis (AS), psoriatic arthritis (PsA)
|
|
|
|
||||||
Gilenya
|
Neuroscience
|
Relapsing multiple sclerosis (RMS)
|
|
|
|
||||||
Entresto
|
Cardiovascular
|
Chronic heart failure
|
|
|
|
||||||
Tasigna
|
Hematology
|
Chronic myeloid leukemia (CML)
|
|
|
|
||||||
Lucentis
|
Other Promoted Brands
|
Age-related macular degeneration (AMD)
|
|
|
|||||||
Promacta/Revolade
|
Hematology
|
Immune thrombocytopenia (ITP), severe aplastic anemia (SAA)
|
|
|
|
||||||
Tafinlar + Mekinist
|
Solid Tumors
|
BRAF V600+ metastatic adjuvant melanoma, advanced non-small cell lung cancer (NSCLC)
|
|
|
|
||||||
Sandostatin
|
Established Brands
|
Carcinoid tumors, acromegaly
|
|
|
|
||||||
Jakavi
|
Hematology
|
Myelofibrosis (MF), polycythemia vera (PV)
|
|
|
|||||||
Xolair 2
|
Immunology
|
Severe allergic asthma (SAA), chronic spontaneous urticaria (CSU)
|
|
|
|||||||
Galvus Group
|
Established Brands
|
Type 2 diabetes
|
|
|
|||||||
Gleevec/Glivec
|
Established Brands
|
Chronic myeloid leukemia (CML), gastrointestinal stromal tumors (GIST)
|
|
|
|
||||||
Afinitor/Votubia
|
Established Brands
|
Breast cancer/ tuberous sclerosis complex (TSC)
|
|
|
|
||||||
Diovan Group
|
Established Brands
|
Hypertension
|
|
|
|
||||||
Exforge Group
|
Established Brands
|
Hypertension
|
|
|
|
||||||
Zolgensma
|
Neuroscience
|
Spinal muscular atrophy (SMA)
|
|
|
|
||||||
Ilaris
|
Immunology
|
Auto-inflammatory (CAPS, TRAPS, HIDS/MKD, FMF, SJIA, AOSD gout)
|
|
|
|
||||||
Kisqali
|
Solid Tumors
|
HR+/HER2- metastatic breast cancer
|
|
|
|
||||||
Exjade/Jadenu
|
Established Brands
|
Chronic iron overload
|
|
|
|
||||||
Votrient
|
Solid Tumors
|
Renal cell carcinoma (RCC)
|
|
|
|
||||||
Top 20 products total
|
|
|
|
||||||||
Rest of portfolio
|
|
|
|
||||||||
Total division net sales to third parties
|
|
|
|
||||||||
1 Brand classifications have been changed to reflect the new Innovative Medicines divisional structures announced on April 4, 2022.
|
|||||||||||
2 Net sales to third parties reflect Xolair sales for all indications.
|
2022 USD m |
2021 USD m |
Change
(2021 to 2022) USD % |
2020 USD m |
Change
(2020 to 2021) USD % |
|||||||
Retail Generics 1
|
|
|
-
|
|
-
|
||||||
Biopharmaceuticals
|
|
|
-
|
|
|
||||||
Anti-Infectives 1
|
|
|
-
|
|
-
|
||||||
Total division net sales to third parties
|
|
|
-
|
|
|
||||||
1
Sandoz total anti-infectives net sales to third parties amounted to USD
|
Innovative Medicines
|
Sandoz
|
Corporate (including eliminations)
|
Group
|
||||||||||||||||||||||
(USD millions)
|
2022
|
2021
|
2020
|
2022
|
2021
|
2020
|
2022
|
2021
|
2020
|
2022
|
2021
|
2020
|
|||||||||||||
Profit-sharing income
|
|
|
|
|
|
|
|||||||||||||||||||
Royalty income
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Milestone income
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Other 1
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Total other revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
1 Other includes revenue from activities such as manufacturing or other services rendered, to the extent such revenue is not recorded under net sales to third parties.
|
Net income statement effect
|
Other comprehensive income effect 1
|
Total comprehensive income effect
|
|||||||||||||||||
(USD millions)
|
2022
|
2021
|
2020
|
2022
|
2021
|
2020
|
2022
|
2021
|
2020
|
||||||||||
Roche Holding AG, Switzerland
|
|
|
|
-
|
|
|
|||||||||||||
Others
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||
Associated companies
|
-
|
|
|
|
-
|
-
|
|
|
|||||||||||
1
In 2021, Novartis share of other comprehensive income recognized by associated companies, net of taxes of USD
|
(USD millions)
|
2021
|
2020
|
|||
Novartis share of Roche's estimated current-year consolidated net income
|
|
|
|||
Prior-year adjustment
|
|
-
|
|||
Amortization of fair value adjustments relating to intangible assets, net of taxes of 2021: USD
|
-
|
-
|
|||
Gain on divestment of the investment in Roche 1
|
|
||||
Net income effect
|
|
|
|||
1
The gain on divestment of the investment in Roche includes the recycling of currency translation effects (see Note 8.1) and other comprehensive income effects totaling USD
|
(USD millions)
|
2022
|
2021
|
2020
|
||||
Interest expense
|
-
|
-
|
-
|
||||
Interest expense on lease liabilities
|
-
|
-
|
-
|
||||
Expense arising from discounting long-term liabilities and capitalized borrowing costs
|
-
|
-
|
-
|
||||
Total interest expense
|
-
|
-
|
-
|
||||
(USD millions)
|
2022
|
2021
|
2020
|
||||
Interest income
|
|
|
|
||||
Other financial income
|
|
|
|
||||
Financial expense
|
-
|
-
|
-
|
||||
Currency result, net
|
-
|
-
|
-
|
||||
Total other financial income and expense
|
|
-
|
-
|
||||
(USD millions)
|
2022
|
2021
|
2020
|
||||
Switzerland 1
|
|
|
|
||||
Foreign
|
|
|
|
||||
Income before taxes
|
|
|
|
||||
1
The 2021 income before taxes in Switzerland includes a USD
|
(USD millions)
|
2022
|
2021
|
2020
|
||||
Switzerland
|
-
|
-
|
-
|
||||
Foreign
|
-
|
-
|
-
|
||||
Current income tax expense
|
-
|
-
|
-
|
||||
Switzerland
|
-
|
|
-
|
||||
Foreign
|
|
|
|
||||
Deferred tax income
|
|
|
|
||||
Income tax expense
|
-
|
-
|
-
|
||||
(As a percentage)
|
2022
|
2021
|
2020
|
||||
Applicable tax rate
|
|
|
|
||||
Effect of disallowed expenditures
|
|
|
|
||||
Effect of utilization of previously unrecognized tax losses brought forward from prior periods
|
|
|
-
|
||||
Effect of income taxed at reduced rates
|
-
|
-
|
-
|
||||
Effect of income not subject to tax 1
|
-
|
-
|
-
|
||||
Effect of tax credits and allowances
|
-
|
-
|
-
|
||||
Effect of release of contingent consideration liability
|
-
|
-
|
-
|
||||
Effect of tax rate change on current and deferred tax assets and liabilities
|
-
|
|
|
||||
Effect of derecognition and reversals of derecognition of deferred tax assets
|
|
|
|
||||
Effect of write-down and reversal of write-down of investments in subsidiaries
|
|
|
-
|
||||
Effect of prior-year items
|
-
|
|
|
||||
Effect of changes in uncertain tax positions
|
|
|
|
||||
Effect of other items
|
|
|
-
|
||||
Effective tax rate
|
|
|
|
||||
|
|||||||
1
2021 includes the effect of income not subject to tax (-
|
2022
|
2021
|
2020
|
|||||
Net income attributable to shareholders of Novartis AG (USD millions)
|
|
|
|
||||
|
|||||||
Number of shares (in millions)
|
|||||||
Weighted average number of shares outstanding used in basic earnings per share
|
|
|
|
||||
Adjustment for vesting of restricted shares, restricted share units and dilutive shares from options
|
|
|
|
||||
Weighted average number of shares in diluted earnings per share
|
|
|
|
||||
|
|||||||
Basic earnings per share (USD)
|
|
|
|
||||
|
|||||||
Diluted earnings per share (USD)
|
|
|
|
||||
(USD millions) |
Note |
Fair value adjustments on financial instruments |
Actuarial gains/(losses) from defined benefit plans |
Cumulative currency translation effects |
Total value
adjustments attributable to Novartis AG shareholders |
Non- controlling interest |
Total value adjustments |
||||||||
Value adjustments at December 31, 2019
|
|
-
|
|
-
|
-
|
-
|
|||||||||
Fair value adjustments on equity securities, net of taxes of USD -
|
|
|
|
||||||||||||
Net investment hedge
|
-
|
-
|
-
|
||||||||||||
Defined benefit plans, net of taxes of USD -
|
|
|
-
|
|
|||||||||||
Currency translation effects, net of taxes of USD
|
8.1
|
|
|
|
|
||||||||||
Total value adjustments in 2020
|
|
|
|
|
-
|
|
|||||||||
Fair value adjustments on equity securities sold, reclassified to retained earnings
|
-
|
-
|
-
|
||||||||||||
Value adjustments related to divestments
|
|
|
|
||||||||||||
Impact of change in ownership of consolidated entities
|
-
|
-
|
|
||||||||||||
Value adjustments at December 31, 2020
|
|
-
|
|
-
|
-
|
-
|
|||||||||
Fair value adjustments on equity securities, net of taxes of USD -
|
|
|
|
||||||||||||
Net investment hedge, net of taxes of USD
|
|
|
|
||||||||||||
Defined benefit plans, net of taxes of USD -
|
|
|
|
|
|||||||||||
Currency translation effects, net of taxes of USD
|
8.1
|
-
|
-
|
-
|
-
|
||||||||||
Total value adjustments in 2021
|
|
|
-
|
-
|
-
|
-
|
|||||||||
Fair value adjustments on equity securities sold, reclassified to retained earnings net of taxes of USD
|
-
|
-
|
-
|
||||||||||||
Value adjustments related to divestments
|
-
|
-
|
-
|
-
|
|||||||||||
Value adjustments at December 31, 2021
|
|
-
|
-
|
-
|
-
|
-
|
|||||||||
Fair value adjustments on equity securities, net of taxes of USD
|
-
|
-
|
-
|
||||||||||||
Net investment hedge, net of taxes of USD -
|
|
|
|
||||||||||||
Defined benefit plans, net of taxes of USD -
|
-
|
-
|
|
-
|
|||||||||||
Currency translation effects, net of taxes of USD
|
8.1
|
-
|
-
|
-
|
-
|
||||||||||
Total value adjustments in 2022
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||
Fair value adjustments on equity securities sold, reclassified to retained earnings net of taxes of
|
-
|
-
|
-
|
||||||||||||
Value adjustments related to divestments, net of taxes of USD -
|
|
|
|
||||||||||||
Value adjustments at December 31, 2022
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||
1 Includes fair value adjustments on equity securities designated as financial assets valued at fair value through other comprehensive income with no subsequent recycling into the consolidated income statement
|
(USD millions) |
Land |
Buildings |
Construction in progress |
Machinery
and other equipment |
Total |
||||||
At January 1, 2022
|
|||||||||||
Cost
|
|
|
|
|
|
||||||
Accumulated depreciation and impairment
|
-
|
-
|
-
|
-
|
-
|
||||||
Net book value
|
|
|
|
|
|
||||||
|
|||||||||||
At January 1, 2022
|
|
|
|
|
|
||||||
Impact of acquisitions of businesses
|
|
|
|||||||||
Reclassifications
|
|
-
|
|
||||||||
Additions
|
|
|
|
|
|
||||||
Disposals and derecognitions
|
-
|
-
|
-
|
-
|
-
|
||||||
Depreciation charge
|
-
|
-
|
-
|
||||||||
Impairment charge
|
-
|
-
|
-
|
-
|
-
|
||||||
Reversal of impairment charge
|
|
|
|
|
|||||||
Currency translation effects
|
-
|
-
|
-
|
-
|
-
|
||||||
At December 31, 2022
|
|
|
|
|
|
||||||
|
|||||||||||
At December 31, 2022
|
|||||||||||
Cost
|
|
|
|
|
|
||||||
Accumulated depreciation and impairment
|
-
|
-
|
-
|
-
|
-
|
||||||
Net book value
|
|
|
|
|
|
||||||
Commitments for purchases of property, plant and equipment
|
|
||||||||||
Capitalized borrowing costs
|
|
||||||||||
(USD millions) |
Land |
Buildings |
Construction in progress |
Machinery
and other equipment |
Total |
||||||
At January 1, 2021
|
|||||||||||
Cost
|
|
|
|
|
|
||||||
Accumulated depreciation and impairment
|
-
|
-
|
-
|
-
|
-
|
||||||
Net book value
|
|
|
|
|
|
||||||
|
|||||||||||
At January 1, 2021
|
|
|
|
|
|
||||||
Reclassifications
|
|
-
|
|
||||||||
Additions
|
|
|
|
|
|
||||||
Disposals and derecognitions
|
-
|
-
|
-
|
-
|
-
|
||||||
Depreciation charge
|
-
|
-
|
-
|
||||||||
Impairment charge
|
-
|
-
|
-
|
-
|
-
|
||||||
Reversal of impairment charge
|
|
|
|
|
|
||||||
Currency translation effects
|
-
|
-
|
-
|
-
|
-
|
||||||
At December 31, 2021
|
|
|
|
|
|
||||||
|
|||||||||||
At December 31, 2021
|
|||||||||||
Cost
|
|
|
|
|
|
||||||
Accumulated depreciation and impairment
|
-
|
-
|
-
|
-
|
-
|
||||||
Net book value
|
|
|
|
|
|
||||||
Commitments for purchases of property, plant and equipment
|
|
||||||||||
Capitalized borrowing costs
|
|
||||||||||
Impairment charges
|
Impairment reversals
|
||||||||||||
(USD millions)
|
2022
|
2021
|
2020
|
2022
|
2021
|
2020
|
|||||||
Innovative Medicines
|
-
|
-
|
-
|
|
|
|
|||||||
Sandoz
|
-
|
-
|
-
|
|
|
|
|||||||
Corporate
|
-
|
||||||||||||
Total
|
-
|
-
|
-
|
|
|
|
|||||||
(USD millions)
|
2022
|
2021
|
|||
Right-of-use assets at January 1
|
|
|
|||
Impact of acquisitions of businesses
|
|
||||
Additions
|
|
|
|||
Depreciation charge
|
-
|
-
|
|||
Impairment charge 1
|
-
|
||||
Lease contract terminations 2
|
-
|
-
|
|||
Currency translation effects
|
-
|
-
|
|||
Total right-of-use assets at December 31
|
|
|
|||
1 Impairment charges in 2022 were recorded in the Innovative Medicines segment.
|
|||||
2 Lease contract terminations also includes modifications to existing leases that result in reductions to the right-of-use assets, and reductions due to sub-leasing.
|
(USD millions) |
December 31,
2022 carrying value |
Depreciation
charge 2022 |
December 31,
2021 carrying value |
Depreciation
charge 2021 |
|||||
Land
|
|
|
|
|
|||||
Buildings
|
|
|
|
|
|||||
Vehicles
|
|
|
|
|
|||||
Machinery and equipment, and other assets
|
|
|
|
|
|||||
Total right-of-use assets
|
|
|
|
|
|||||
(USD millions) |
Lease liabilities 2022 |
Lease liabilities
undiscounted 2022 |
Lease liabilities 2021 |
Lease liabilities
undiscounted 2021 |
|||||
Less than one year
|
|
|
|
|
|||||
Between one and two years
|
|
|
|
|
|||||
Between two and three years
|
|
|
|
|
|||||
Between three and four years
|
|
|
|
|
|||||
Between four and five years
|
|
|
|
|
|||||
After five years
|
|
|
|
|
|||||
Total lease liabilities
|
|
|
|
|
|||||
Less current portion of lease liabilities
|
-
|
-
|
-
|
-
|
|||||
Non-current portion of lease liabilities
|
|
|
|
|
|||||
Commitments for leases not yet commenced
|
|
|
|||||||
(USD millions)
|
2022
|
2021
|
2020
|
||||
Interest expense on lease liabilities 1
|
|
|
|
||||
Expense on short-term leases
|
|
|
|
||||
Expense on low-value leases
|
|
|
|
||||
Total cash outflows for leases
|
|
|
|
||||
Thereof:
|
|||||||
Cash outflows for short-term leases and low-value leases 2
|
|
|
|
||||
Payments of interest 3
|
|
|
|
||||
Payments of lease liabilities 4
|
|
|
|
||||
1
The weighted average interest rate is
|
|||||||
2 Cash flows from short-term and low-value leases are included within total net cash flows from operating activities. The portfolio of short-term leases to which the Group is committed to at December 31, 2022, 2021 and 2020, is similar to the portfolio of short-term leases the Group entered into during 2022, 2021 and 2020.
|
|||||||
3 Included within total net cash flows from operating activities
|
|||||||
4 Reported as cash outflows in financing activities net of lease incentives received, if any.
|
Goodwill
|
Intangible assets other than goodwill
|
||||||||||||
(USD millions) |
Total |
In-process
research and development |
Technologies |
Currently
marketed products |
Other
intangible assets |
Total |
|||||||
At January 1, 2022
|
|||||||||||||
Cost
|
|
|
|
|
|
|
|||||||
Accumulated amortization and impairment
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||
Net book value
|
|
|
|
|
|
|
|||||||
|
|||||||||||||
At January 1, 2022
|
|
|
|
|
|
|
|||||||
Impact of acquisitions of businesses
|
|
|
|
||||||||||
Reclassifications 1
|
-
|
|
|
|
|||||||||
Additions
|
|
|
|
|
|||||||||
Disposals and derecognitions 2
|
-
|
-
|
-
|
-
|
-
|
||||||||
Amortization charge
|
-
|
-
|
-
|
-
|
|||||||||
Impairment charge
|
-
|
-
|
-
|
-
|
-
|
||||||||
Currency translation effects
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||
At December 31, 2022
|
|
|
|
|
|
|
|||||||
|
|||||||||||||
At December 31, 2022
|
|||||||||||||
Cost
|
|
|
|
|
|
|
|||||||
Accumulated amortization and impairment
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||
Net book value
|
|
|
|
|
|
|
|||||||
1 Reclassifications between various asset categories as a result of product launches of acquired in-process research and development and completion of software development
|
|||||||||||||
2 Derecognition of assets that are no longer being used or developed and are not considered to have a significant disposal value or other alternative use
|
Goodwill
|
Intangible assets other than goodwill
|
||||||||||||
(USD millions) |
Total |
In-process
research and development |
Technologies |
Currently
marketed products |
Other
intangible assets |
Total |
|||||||
At January 1, 2021
|
|||||||||||||
Cost
|
|
|
|
|
|
|
|||||||
Accumulated amortization and impairment
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||
Net book value
|
|
|
|
|
|
|
|||||||
|
|||||||||||||
At January 1, 2021
|
|
|
|
|
|
|
|||||||
Impact of acquisitions of businesses
|
|
|
|
|
|
||||||||
Reclassifications 1
|
-
|
|
|
||||||||||
Additions
|
|
|
|
|
|||||||||
Disposals and derecognitions 2
|
-
|
-
|
-
|
||||||||||
Amortization charge
|
-
|
-
|
-
|
-
|
|||||||||
Impairment charge
|
-
|
-
|
-
|
-
|
-
|
||||||||
Currency translation effects
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||
At December 31, 2021
|
|
|
|
|
|
|
|||||||
|
|||||||||||||
At December 31, 2021
|
|||||||||||||
Cost
|
|
|
|
|
|
|
|||||||
Accumulated amortization and impairment
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||
Net book value
|
|
|
|
|
|
|
|||||||
1 Reclassifications between various asset categories as a result of product launches of acquired in-process research and development and completion of software development
|
|||||||||||||
2 Derecognition of assets that are no longer being used or developed and are not considered to have a significant disposal value or other alternative use
|
Goodwill1
|
Intangible assets other than goodwill
|
||||||||||||
(USD millions) |
Total |
In-process
research and development |
Technologies |
Currently
marketed products |
Other
intangible assets |
Total |
|||||||
Innovative Medicines
|
|
|
|
|
|
|
|||||||
Sandoz
|
|
|
|
|
|
|
|||||||
Corporate
|
|
|
|||||||||||
Net book value at December 31, 2022
|
|
|
|
|
|
|
|||||||
1 The Innovative Medicines and Sandoz Divisions’ represent the grouping of cash-generating units, to which goodwill is allocated.
|
Goodwill1
|
Intangible assets other than goodwill
|
||||||||||||
(USD millions) |
Total |
In-process
research and development |
Technologies |
Currently
marketed products |
Other
intangible assets |
Total |
|||||||
Innovative Medicines
|
|
|
|
|
|
|
|||||||
Sandoz
|
|
|
|
|
|
|
|||||||
Corporate
|
|
|
|
||||||||||
Net book value at December 31, 2021
|
|
|
|
|
|
|
|||||||
1 The Innovative Medicines and Sandoz Divisions’ and Corporate represent the grouping of cash-generating units, to which goodwill is allocated.
|
(As a percentage) |
Innovative
Medicines |
Sandoz |
|||
Terminal growth rate
|
|
|
|||
Discount rate (post-tax)
|
|
|
|||
Impairment charges
|
Impairment reversals
|
||||||||||||
(USD millions)
|
2022
|
2021
|
2020
|
2022
|
2021
|
2020
|
|||||||
Innovative Medicines 1
|
-
|
-
|
-
|
||||||||||
Sandoz
|
-
|
-
|
-
|
||||||||||
Corporate
|
-
|
-
|
-
|
||||||||||
Total
|
-
|
-
|
-
|
||||||||||
1
2022 includes an impairment of USD
|
|||||||||||||
2021 includes an impairment of USD
|
|||||||||||||
2020 includes an impairment of USD
|
(USD millions) |
Property, plant and equipment |
Intangible assets |
Pensions and
other benefit obligations of employees |
Inventories |
Tax loss carry- forwards |
Other assets, provisions and accruals |
Total |
||||||||
Gross deferred tax assets at January 1, 2022
|
|
|
|
|
|
|
|
||||||||
Gross deferred tax liabilities at January 1, 2022
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||
Net deferred tax balance at January 1, 2022
|
-
|
-
|
|
|
|
|
|
||||||||
|
|||||||||||||||
At January 1, 2022
|
-
|
-
|
|
|
|
|
|
||||||||
Credited/(charged) to income
|
|
|
-
|
-
|
|
|
|
||||||||
Charged to equity
|
|
|
|||||||||||||
Credited/(charged) to other comprehensive income
|
-
|
-
|
|
-
|
|||||||||||
Impact of acquisitions of businesses
|
-
|
|
|
-
|
|||||||||||
Other movements
|
|
|
-
|
-
|
-
|
|
|
||||||||
Net deferred tax balance at December 31, 2022
|
-
|
-
|
|
|
|
|
|
||||||||
|
|||||||||||||||
Gross deferred tax assets at December 31, 2022
|
|
|
|
|
|
|
|
||||||||
Gross deferred tax liabilities at December 31, 2022
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||
Net deferred tax balance at December 31, 2022
|
-
|
-
|
|
|
|
|
|
||||||||
|
|||||||||||||||
After offsetting the following amount of deferred tax assets and liabilities within the same tax jurisdiction, the balance amounts to:
|
|
||||||||||||||
Deferred tax assets at December 31, 2022
|
|
||||||||||||||
Deferred tax liabilities at December 31, 2022
|
-
|
||||||||||||||
Net deferred tax balance at December 31, 2022
|
|
||||||||||||||
|
|||||||||||||||
Gross deferred tax assets at January 1, 2021
|
|
|
|
|
|
|
|
||||||||
Gross deferred tax liabilities at January 1, 2021
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||
Net deferred tax balance at January 1, 2021
|
-
|
-
|
|
|
|
|
|
||||||||
|
|||||||||||||||
At January 1, 2021
|
-
|
-
|
|
|
|
|
|
||||||||
Credited/(charged) to income
|
-
|
|
-
|
-
|
-
|
|
|
||||||||
Charged to equity
|
-
|
-
|
|||||||||||||
Credited/(charged) to other comprehensive income
|
-
|
|
-
|
||||||||||||
Impact of acquisitions of businesses
|
-
|
|
-
|
||||||||||||
Other movements
|
|
|
-
|
-
|
-
|
-
|
-
|
||||||||
Net deferred tax balance at December 31, 2021
|
-
|
-
|
|
|
|
|
|
||||||||
|
|||||||||||||||
Gross deferred tax assets at December 31, 2021
|
|
|
|
|
|
|
|
||||||||
Gross deferred tax liabilities at December 31, 2021
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||
Net deferred tax balance at December 31, 2021
|
-
|
-
|
|
|
|
|
|
||||||||
|
|||||||||||||||
After offsetting the following amount of deferred tax assets and liabilities within the same tax jurisdiction, the balance amounts to:
|
|
||||||||||||||
Deferred tax assets at December 31, 2021
|
|
||||||||||||||
Deferred tax liabilities at December 31, 2021
|
-
|
||||||||||||||
Net deferred tax balance at December 31, 2021
|
|
||||||||||||||
|
|||||||||||||||
|
(USD millions)
|
Unrecognized
|
Recognized
|
2022 total
|
||||
One year
|
|
|
|
||||
Two years
|
|
|
|
||||
Three years
|
|
|
|
||||
Four years
|
|
|
|
||||
Five years
|
|
|
|
||||
More than five years
|
|
|
|
||||
Not subject to expiry
|
|
|
|
||||
Total
|
|
|
|
||||
(USD millions)
|
Unrecognized
|
Rcognized
|
2021 total
|
||||
One year
|
|
|
|
||||
Two years
|
|
|
|
||||
Three years
|
|
|
|
||||
Four years
|
|
|
|
||||
Five years
|
|
|
|
||||
More than five years
|
|
|
|
||||
Not subject to expiry
|
|
|
|
||||
Total
|
|
|
|
||||
(USD millions)
|
2022
|
2021
|
2020
|
||||
Tax losses carried forward that expired
|
|
|
|
||||
(USD millions)
|
2022
|
2021
|
|||
Equity securities
|
|
|
|||
Debt securities
|
|
|
|||
Fund investments
|
|
|
|||
Total financial investments
|
|
|
|||
Long-term receivables from finance subleases
|
|
|
|||
Other long-term receivables
|
|
|
|||
Contingent consideration receivables 1
|
|
|
|||
Long-term loans, advances and security deposits
|
|
|
|||
Total financial assets
|
|
|
|||
1 Note 29 provides additional disclosures related to contingent consideration.
|
(USD millions)
|
2022
|
2021
|
|||
Deferred compensation plans
|
|
|
|||
Prepaid post-employment benefit plans 1
|
|
|
|||
Other non-current assets
|
|
|
|||
Total other non-current assets
|
|
|
|||
1 Note 25 provides additional disclosures related to post-emplyment benefits.
|
(USD millions)
|
2022
|
2021
|
|||
Raw material, consumables
|
|
|
|||
Work in progress
|
|
|
|||
Finished products
|
|
|
|||
Total inventories
|
|
|
|||
(USD billions)
|
2022
|
2021
|
2020
|
||||
Cost of goods sold
|
-
|
-
|
-
|
||||
(USD millions)
|
2022
|
2021
|
2020
|
||||
Inventory provisions
|
-
|
-
|
-
|
||||
Reversals of inventory provisions
|
|
|
|
||||
(USD millions)
|
2022
|
2021
|
|||
Total gross trade receivables
|
|
|
|||
Provisions for doubtful trade receivables
|
-
|
-
|
|||
Total trade receivables, net
|
|
|
|||
(USD millions)
|
2022
|
2021
|
2020
|
||||
January 1
|
-
|
-
|
-
|
||||
Provisions for doubtful trade receivables charged to the consolidated income statement
|
-
|
-
|
-
|
||||
Utilization of provisions for doubtful trade receivables
|
|
|
|
||||
Reversal of provisions for doubtful trade receivables credited to the consolidated income statement
|
|
|
|
||||
Currency translation effects
|
|
|
-
|
||||
December 31
|
-
|
-
|
-
|
||||
(USD millions)
|
2022
|
2021
|
|||
Not overdue
|
|
|
|||
Past due for not more than one month
|
|
|
|||
Past due for more than one month but less than three months
|
|
|
|||
Past due for more than three months but less than six months
|
|
|
|||
Past due for more than six months but less than one year
|
|
|
|||
Past due for more than one year
|
|
|
|||
Provisions for doubtful trade receivables
|
-
|
-
|
|||
Total trade receivables, net
|
|
|
|||
(USD millions)
|
2022
|
2021
|
|||
US dollar (USD)
|
|
|
|||
Euro (EUR)
|
|
|
|||
Russian ruble (RUB)
|
|
|
|||
Japanese yen (JPY)
|
|
|
|||
British pound (GBP)
|
|
|
|||
Chinese yuan (CNY)
|
|
|
|||
Canadian dollar (CAD)
|
|
|
|||
Brazilian real (BRL)
|
|
|
|||
Australian dollar (AUD)
|
|
|
|||
Swiss franc (CHF)
|
|
|
|||
Other currencies
|
|
|
|||
Total trade receivables, net
|
|
|
|||
(USD millions)
|
2022
|
2021
|
|||
Commodities
|
|
|
|||
Debt securities
|
|
|
|||
Time deposits and short-term investments with original maturity more than 90 days
|
|
|
|||
Derivative financial instruments
|
|
|
|||
Total marketable securities, commodities, time deposits and derivative financial instruments
|
|
|
|||
(USD millions)
|
2022
|
2021
|
|||
Current accounts
|
|
|
|||
Time deposits and short-term investments with original maturity less than 90 days
|
|
|
|||
Total cash and cash equivalents
|
|
|
|||
(USD millions)
|
2022
|
2021
|
|||
VAT receivable
|
|
|
|||
Withholding tax recoverable
|
|
|
|||
Prepaid expenses
|
|
|
|||
Contingent consideration receivable 1
|
|
||||
Other receivables and current assets
|
|
|
|||
Total other current assets
|
|
|
|||
1 Note 29 provides additional disclosures related to contingent consideration.
|
(USD millions) |
Jan 1, 2020 |
Movement
in year |
Dec 31, 2020 |
Movement
in year |
Dec 31, 2021 |
Movement
in year |
Dec 31, 2022 |
||||||||
Share capital 1
|
|
-
|
|
-
|
|
-
|
|
||||||||
Treasury shares
|
-
|
|
-
|
|
-
|
-
|
-
|
||||||||
Outstanding share capital
|
|
|
|
-
|
|
-
|
|
||||||||
1
The Novartis AG share capital consists of registered shares with a nominal value of CHF
|
2022
|
2021
|
2020
|
|||||||||||||||||||
Number of outstanding shares (in millions) |
Note |
Total
Novartis shares |
Total
treasury shares1 |
Total
outstanding shares |
Total
Novartis shares |
Total
treasury shares1 |
Total
outstanding shares |
Total
Novartis shares |
Total
treasury shares1 |
Total
outstanding shares |
|||||||||||
Balance at beginning of year
|
|
-
|
|
|
-
|
|
|
-
|
|
||||||||||||
Shares canceled for capital reduction 2
|
-
|
|
-
|
|
-
|
|
|||||||||||||||
Shares acquired to be canceled 3
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Other share purchases 4
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Exercise of options and employee transactions 5
|
18.9
|
|
|
|
|
|
|
||||||||||||||
Equity-based compensation 5
|
|
|
|
|
|
|
|||||||||||||||
Shares delivered to Alcon employees
|
|
|
|
|
|
|
|||||||||||||||
Total movements
|
-
|
-
|
-
|
-
|
|
-
|
-
|
|
-
|
||||||||||||
Balance at end of year
|
|
-
|
|
|
-
|
|
|
-
|
|
||||||||||||
1
Approximately
|
|||||||||||||||||||||
2 Novartis reduced its share capital by canceling shares that were repurchased on the SIX Swiss Exchange second trading line during previous years.
|
|||||||||||||||||||||
3
Shares repurchased on the SIX Swiss Exchange second trading line under a CHF
|
|||||||||||||||||||||
4 Shares acquired from employees, which were previously granted to them under the respective equity-based participation plans
|
|||||||||||||||||||||
5 Shares delivered as a result of options being exercised and physical share deliveries related to equity-based participation plans
|
|||||||||||||||||||||
|
2022
|
2021
|
2020
|
|||||
Dividend per share (in CHF)
|
|
|
|
||||
Total dividend payment (in USD billion)
|
|
|
|
||||
2022
|
2021
|
2020
|
|||||||||||||
Note |
Number of
outstanding shares (in millions) |
Equity impact USD m |
Number of
outstanding shares (in millions) |
Equity impact USD m |
Number of
outstanding shares (in millions) |
Equity impact USD m |
|||||||||
Shares acquired to be canceled 1
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||
Other share purchases 2
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||
Purchase of treasury shares
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||
Exercise of options and employee transactions 3
|
18.9
|
|
|
|
|
|
|
||||||||
Equity-based compensation 4
|
|
|
|
|
|
|
|||||||||
Shares delivered to Alcon employees
|
|
|
|
|
|
|
|||||||||
Total
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||
1
Shares repurchased on the SIX Swiss Exchange second trading line under a CHF
|
|||||||||||||||
2 Shares acquired from employees, which were previously granted to them under the respective equity-based participation plans
|
|||||||||||||||
3 Shares delivered as a result of options being exercised related to equity-based participation plans and the delivery of treasury shares. The average share price of the shares delivered was significantly below market price, reflecting the strike price of the options exercised.
|
|||||||||||||||
4 Equity-settled share-based compensation is expensed in the consolidated income statement in accordance with the vesting period of the share-based compensation plans. The value for the shares and options granted is credited to consolidated equity over the respective vesting period. In addition, tax benefits arising from tax-deductible amounts exceeding the expense recognized in the income statement are credited to equity.
|
|||||||||||||||
|
(USD millions)
|
2022
|
2021
|
|||
Straight bonds
|
|
|
|||
Liabilities to banks and other financial institutions 1
|
|
|
|||
Total, including current portion of non-current financial debt
|
|
|
|||
Less current portion of non-current financial debt
|
-
|
-
|
|||
Total non-current financial debt
|
|
|
|||
1
Average interest rate
|
Coupon |
Currency |
Notional
amount (millions) |
Issuance year |
Maturity year |
Issuer |
Issue price |
2022
(USD millions) |
2021
(USD millions) |
|||||||||
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|||||||||
Total straight bonds
|
|
|
|||||||||||||||
1
The EUR
|
(USD millions)
|
2022
|
2021
|
|||
2022
|
|
||||
2023
|
|
|
|||
2024
|
|
|
|||
2025
|
|
|
|||
2026
|
|
|
|||
2027
|
|
|
|||
After 2027
|
|
|
|||
Total
|
|
|
|||
(USD millions)
|
2022
|
2021
|
|||
US dollar (USD)
|
|
|
|||
Euro (EUR)
|
|
|
|||
Japanese yen (JPY)
|
|
|
|||
Swiss franc (CHF)
|
|
|
|||
Others
|
|
|
|||
Total
|
|
|
|||
(USD millions) |
2022
Balance sheet |
2022
Fair values |
2021
Balance sheet |
2021
Fair values |
|||||
Straight bonds
|
|
|
|
|
|||||
Others
|
|
|
|
|
|||||
Total
|
|
|
|
|
|||||
(USD millions)
|
2022
|
2021
|
|||
Accrued liability for employee benefits:
|
|||||
Defined benefit pension plans 1
|
|
|
|||
Other long-term employee benefits and deferred compensation
|
|
|
|||
Other post-employment benefits 1
|
|
|
|||
Environmental remediation provisions
|
|
|
|||
Provisions for product liabilities, governmental investigations and other legal matters
|
|
|
|||
Contingent consideration 2
|
|
|
|||
Other non-current liabilities
|
|
|
|||
Total provisions and other non-current liabilities
|
|
|
|||
1 Note 25 provides additional disclosures related to post-employment benefits.
|
|||||
2 Note 29 provides additional disclosures related to contingent consideration.
|
(USD millions)
|
2022
|
2021
|
2020
|
||||
January 1
|
|
|
|
||||
Cash payments
|
-
|
-
|
-
|
||||
Releases
|
-
|
-
|
-
|
||||
Additions
|
|
|
|
||||
Currency translation effects
|
-
|
-
|
|
||||
December 31
|
|
|
|
||||
Less current provision
|
-
|
-
|
-
|
||||
Non-current environmental remediation provisions at December 31
|
|
|
|
||||
(USD millions) |
Expected
cash outflows |
||
Due within two years
|
|
||
Due later than two years, but within five years
|
|
||
Due later than five years, but within 10 years
|
|
||
Due after 10 years
|
|
||
Total environmental remediation provisions
|
|
||
(USD millions)
|
2022
|
2021
|
2020
|
||||
January 1
|
|
|
|
||||
Impact of acquisitions of businesses
|
|
|
|||||
Cash payments
|
-
|
-
|
-
|
||||
Releases of provisions
|
-
|
-
|
-
|
||||
Additions to provisions
|
|
|
|
||||
Currency translation effects
|
-
|
-
|
-
|
||||
December 31
|
|
|
|
||||
Less current portion
|
-
|
-
|
-
|
||||
Non-current product liabilities, governmental investigations and other legal matters provisions at December 31
|
|
|
|
||||
(USD millions)
|
2022
|
2021
|
|||
Interest-bearing accounts of employees payable on demand 1
|
|
||||
Bank and other financial debt 2
|
|
|
|||
Commercial paper
|
|
|
|||
Current portion of non-current financial debt
|
|
|
|||
Derivative financial instruments
|
|
|
|||
Total current financial debt and derivative financial instruments
|
|
|
|||
1
Weighted average interest rate
|
|||||
2
Weighted average interest rate
|
(USD millions)
|
2022
|
2021
|
|||
Taxes other than income taxes
|
|
|
|||
Restructuring provisions
|
|
|
|||
Accrued expenses for goods and services received but not invoiced
|
|
|
|||
Accruals for royalties
|
|
|
|||
Accrued interests on financial debt
|
|
|
|||
Provisions for deductions from revenue
|
|
|
|||
Accruals for compensation and benefits, including social security
|
|
|
|||
Environmental remediation provisions
|
|
|
|||
Deferred income
|
|
|
|||
Provisions for product liabilities, governmental investigations and other legal matters 1
|
|
|
|||
Accrued share-based payments
|
|
|
|||
Contingent consideration 2
|
|
|
|||
Commitment for repurchase of own shares 3
|
|
||||
Other payables
|
|
|
|||
Total provisions and other current liabilities
|
|
|
|||
|
|||||
1 Note 20 provides additional disclosures related to legal provisions.
|
|||||
2 Note 29 provides additional disclosures related to contingent consideration.
|
|||||
3 Note 18.3 provides additional disclosures related to commitment for repurchase of own shares.
|
|||||
|
(USD millions)
|
2022
|
2021
|
2020
|
||||
January 1
|
|
|
|
||||
Effect of currency translation, business combinations
|
-
|
-
|
|
||||
Payments/utilizations
|
-
|
-
|
-
|
||||
Adjustments of prior years charged to income statement
|
-
|
-
|
-
|
||||
Current year income statement charge
|
|
|
|
||||
Change in provisions offset against gross trade receivables
|
-
|
|
|
||||
December 31
|
|
|
|
||||
(USD millions)
|
2022
|
2021
|
2020
|
||||
January 1
|
|
|
|
||||
Additions
|
|
|
|
||||
Cash payments
|
-
|
-
|
-
|
||||
Releases
|
-
|
-
|
-
|
||||
Transfers
|
-
|
-
|
|||||
Currency translation effects
|
-
|
-
|
|
||||
December 31
|
|
|
|
||||
(USD millions)
|
2022
|
2021
|
2020
|
||||
Depreciation, amortization and impairments on:
|
|||||||
Property, plant and equipment
|
|
|
|
||||
Right-of-use assets
|
|
|
|
||||
Intangible assets
|
|
|
|
||||
Financial assets 1
|
|
-
|
-
|
||||
Change in provisions and other non-current liabilities
|
|
|
|
||||
Gains on disposal and other adjustments on property, plant and equipment; intangible assets; financial assets; and other non-current assets, net
|
-
|
-
|
-
|
||||
Equity-settled compensation expense
|
|
|
|
||||
Loss/(income) from associated companies 2
|
|
-
|
-
|
||||
Income taxes
|
|
|
|
||||
Net financial expense
|
|
|
|
||||
Other
|
-
|
||||||
Total
|
|
-
|
|
||||
1 Includes fair value changes
|
|||||||
2
2021 included the gain of USD
|
(USD millions)
|
2022
|
2021
|
2020
|
||||
(Increase)/decrease in inventories
|
-
|
|
-
|
||||
(Increase)/decrease in trade receivables
|
-
|
-
|
|
||||
Decrease in trade payables
|
-
|
-
|
-
|
||||
Change in other current and non-current assets
|
-
|
-
|
|
||||
Change in other current liabilities
|
|
|
|
||||
Other adjustments, net
|
|
-
|
|||||
Total
|
-
|
|
-
|
||||
(USD millions)
|
Note
|
2022
|
2021
|
2020
|
|||||
Net assets recognized as a result of acquisitions of businesses
|
24
|
-
|
-
|
-
|
|||||
Fair value of previously held equity interests
|
|
|
|
||||||
Contingent consideration payables, net
|
|
|
|
||||||
Payments, deferred consideration and other adjustments, net
|
-
|
|
|
||||||
Cash flows used for acquisitions of businesses
|
-
|
-
|
-
|
||||||
Cash flows (used for)/from divestments of businesses, net 1
|
-
|
|
|
||||||
Cash flows used for acquisitions and divestments of businesses, net
|
-
|
-
|
-
|
||||||
1
In 2022, USD
|
|||||||||
In 2022, the net identifiable assets of divested businesses amounted to USD
|
|||||||||
In 2021, USD
|
|||||||||
In 2020, USD
|
(USD millions) |
Non-current financial debts |
Current
financial debts and derivative financial instruments |
Non-current lease liabilities |
Current lease liabilities |
|||||
January 1, 2022
|
|
|
|
|
|||||
Increase in non-current financial debts
|
|
||||||||
Repayments of the current portion of non-current financial debts
|
-
|
||||||||
Change in current financial debts 1
|
|
||||||||
Payments of lease liabilities
|
-
|
||||||||
Interest payments for amounts included in lease liabilities classified as cash flows from operating activities
|
-
|
||||||||
New, modified and terminated leases, net
|
|
|
|||||||
Impact of acquisitions and divestments of businesses, net
|
|
|
|||||||
Changes in fair values, lease interest and other changes, net
|
-
|
|
|||||||
Amortization of bonds discount
|
|
|
|||||||
Currency translation effects
|
-
|
-
|
-
|
-
|
|||||
Reclassification from non-current to current, net
|
-
|
|
-
|
|
|||||
December 31, 2022
|
|
|
|
|
|||||
1
Change in current financial debts included net cash outflows from interest-bearing accounts of employees payable on demand amounting to USD
|
(USD millions) |
Non-current financial debts |
Current
financial debts and derivative financial instruments |
Non-current lease liabilities |
Current lease liabilities |
|||||
January 1, 2021
|
|
|
|
|
|||||
Increase in non-current financial debts
|
|
||||||||
Repayments of the current portion of non-current financial debts
|
-
|
||||||||
Change in current financial debts
|
-
|
||||||||
Payments of lease liabilities, net
|
-
|
||||||||
Interest payments for amounts included in lease liabilities classified as cash flows from operating activities
|
-
|
||||||||
New, modified and terminated leases, net
|
|
|
|||||||
Impact of acquisitions of businesses
|
|
||||||||
Changes in fair values, lease interest and other changes, net
|
-
|
|
|||||||
Amortization of bonds discount
|
|
|
|||||||
Currency translation effects
|
-
|
-
|
-
|
-
|
|||||
Reclassification from non-current to current, net
|
-
|
|
-
|
|
|||||
December 31, 2021
|
|
|
|
|
|||||
(USD millions) |
Non-current financial debts |
Current
financial debts and derivative financial instruments |
Non-current lease liabilities |
Current lease liabilities |
|||||
January 1, 2020
|
|
|
|
|
|||||
Increase in non-current financial debts
|
|
||||||||
Repayments of the current portion of non-current financial debts
|
-
|
||||||||
Change in current financial debts
|
|
||||||||
Payments of lease liabilities, net
|
-
|
||||||||
Interest payments for amounts included in lease liabilities classified as cash flows from operating activities
|
-
|
||||||||
New, modified and terminated leases, net
|
|
|
|||||||
Impact of acquisitions of businesses
|
|
|
|
||||||
Changes in fair values, lease interest and other changes, net
|
-
|
-
|
|
||||||
Amortization of bonds discount
|
|
|
|||||||
Currency translation effects
|
|
|
|
|
|||||
Reclassification from non-current to current, net
|
-
|
|
-
|
|
|||||
December 31, 2020
|
|
|
|
|
|||||
(USD millions)
|
2022
|
2021
|
2020
|
||||
Property, plant and equipment
|
|
|
|||||
Right-of-use assets
|
|
|
|||||
Currently marketed products
|
|
|
|||||
Acquired research and development
|
|
|
|
||||
Other intangible assets
|
|
|
|||||
Deferred tax assets
|
|
|
|
||||
Non-current financial and other assets
|
|
||||||
Inventories
|
|
||||||
Trade receivables and financial and other current assets
|
|
|
|
||||
Cash and cash equivalents
|
|
|
|
||||
Deferred tax liabilities
|
-
|
-
|
-
|
||||
Current and non-current financial debts
|
-
|
-
|
|||||
Current and non-current lease liabilities
|
-
|
-
|
|||||
Trade payables and other liabilities
|
-
|
-
|
-
|
||||
Net identifiable assets acquired
|
|
|
|
||||
Acquired cash and cash equivalents
|
-
|
-
|
-
|
||||
Non-controlling interests
|
-
|
||||||
Goodwill
|
|
|
|
||||
Net assets recognized as a result of acquisitions of businesses
|
|
|
|
||||
Pension plans
|
Other post-employment benefit plans
|
||||||||
(USD millions)
|
2022
|
2021
|
2022
|
2021
|
|||||
Benefit obligation at January 1
|
|
|
|
|
|||||
Current service cost
|
|
|
|
|
|||||
Interest cost
|
|
|
|
|
|||||
Past service costs and settlements
|
-
|
|
|
-
|
|||||
Administrative expenses
|
|
|
|||||||
Remeasurement gains arising from changes in financial assumptions 1
|
-
|
-
|
-
|
-
|
|||||
Remeasurement (gains)/losses arising from changes in demographic assumptions
|
-
|
-
|
|
||||||
Experience-related remeasurement losses/(gains)
|
|
|
-
|
-
|
|||||
Currency translation effects
|
-
|
-
|
-
|
-
|
|||||
Benefit payments
|
-
|
-
|
-
|
-
|
|||||
Contributions of employees
|
|
|
|||||||
Effect of acquisitions, divestments or transfers
|
-
|
|
|||||||
Benefit obligation at December 31
|
|
|
|
|
|||||
Fair value of plan assets at January 1
|
|
|
|
|
|||||
Interest income
|
|
|
|
|
|||||
Return on plan assets excluding interest income
|
-
|
|
-
|
|
|||||
Currency translation effects
|
-
|
-
|
|||||||
Novartis Group contributions
|
|
|
|
|
|||||
Contributions of employees
|
|
|
|||||||
Settlements
|
-
|
-
|
|||||||
Benefit payments
|
-
|
-
|
-
|
-
|
|||||
Effect of acquisitions, divestments or transfers
|
|||||||||
Fair value of plan assets at December 31
|
|
|
|
|
|||||
Funded status
|
|
-
|
-
|
-
|
|||||
Limitation on recognition of fund surplus at January 1
|
-
|
-
|
|||||||
Change in limitation on recognition of fund surplus
|
-
|
-
|
|||||||
Currency translation effects
|
-
|
|
|||||||
Interest income on limitation of fund surplus
|
-
|
-
|
|||||||
Limitation on recognition of fund surplus at December 31 2
|
-
|
-
|
|||||||
Net liability in the balance sheet at December 31
|
-
|
-
|
-
|
-
|
|||||
1 The remeasurement gains arising from changes in financial assumptions is driven mainly by changes in the actuarial discount rates used to determine the benefit obligation.
|
|||||||||
2
As of December 31, 2022, the most significant pension plans where the asset ceiling was required to be applied were in Switzerland and amounted to USD
|
Pension plans
|
Other post-employment benefit plans
|
||||||||
(USD millions)
|
2022
|
2021
|
2022
|
2021
|
|||||
Net liability at January 1
|
-
|
-
|
-
|
-
|
|||||
Current service cost
|
-
|
-
|
-
|
-
|
|||||
Net interest expense
|
-
|
-
|
-
|
-
|
|||||
Administrative expenses
|
-
|
-
|
|||||||
Past service costs and settlements
|
|
-
|
-
|
|
|||||
Remeasurements
|
|
|
|
|
|||||
Currency translation effects
|
|
|
|
|
|||||
Novartis Group contributions
|
|
|
|
|
|||||
Effect of acquisitions, divestments or transfers
|
|
-
|
|||||||
Change in limitation on recognition of fund surplus
|
-
|
-
|
|||||||
Net liability at December 31
|
-
|
-
|
-
|
-
|
|||||
|
|||||||||
Amounts recognized in the consolidated balance sheet
|
|||||||||
Prepaid benefit cost
|
|
|
|||||||
Accrued benefit liability
|
-
|
-
|
-
|
-
|
|||||
|
2022
|
2021
|
||||||||||||||||
(USD millions) |
Switzerland |
United
States |
Rest of
the world |
Total |
Switzerland |
United
States |
Rest of
the world |
Total |
|||||||||
Benefit obligation at December 31
|
|
|
|
|
|
|
|
|
|||||||||
Thereof unfunded
|
|
|
|
|
|
|
|||||||||||
By type of member
|
|||||||||||||||||
Active
|
|
|
|
|
|
|
|
|
|||||||||
Deferred pensioners
|
|
|
|
|
|
|
|||||||||||
Pensioners
|
|
|
|
|
|
|
|
|
|||||||||
Fair value of plan assets at December 31
|
|
|
|
|
|
|
|
|
|||||||||
Funded status
|
|
-
|
-
|
|
|
-
|
-
|
-
|
|||||||||
2022
|
2021
|
||||||||||||
(USD millions) |
United
States |
Rest of
the world |
Total |
United
States |
Rest of
the world |
Total |
|||||||
Benefit obligation at December 31
|
|
|
|
|
|
|
|||||||
Thereof unfunded
|
|
|
|
|
|
|
|||||||
By type of member
|
|||||||||||||
Active
|
|
|
|
|
|
|
|||||||
Deferred pensioners
|
|
|
|
|
|
|
|||||||
Pensioners
|
|
|
|
|
|
|
|||||||
Fair value of plan assets at December 31
|
|
|
|
|
|
|
|||||||
Funded status
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||
Pension plans
|
Other post-employment benefit plans
|
||||||||||||
2022
|
2021
|
2020
|
2022
|
2021
|
2020
|
||||||||
Weighted average assumptions used to determine benefit obligations at December 31
|
|||||||||||||
Discount rate
|
|
|
|
|
|
|
|||||||
Expected rate of pension increase
|
|
|
|
||||||||||
Expected rate of salary increase
|
|
|
|
||||||||||
Interest on savings account
|
|
|
|
||||||||||
Current average life expectancy for a 65-year-old male in years
|
|
|
|
|
|
|
|||||||
Current average life expectancy for a 65-year-old female in years
|
|
|
|
|
|
|
|||||||
(USD millions) |
Change in 2022
year-end defined benefit pension obligation |
Change in 2021
year-end defined benefit pension obligation |
|||
25 basis point increase in discount rate
|
-
|
-
|
|||
25 basis point decrease in discount rate
|
|
|
|||
One-year increase in life expectancy
|
|
|
|||
25 basis point increase in rate of pension increase
|
|
|
|||
25 basis point decrease in rate of pension increase
|
-
|
-
|
|||
25 basis point increase of interest on savings account
|
|
|
|||
25 basis point decrease of interest on savings account
|
-
|
-
|
|||
25 basis point increase in rate of salary increase
|
|
|
|||
25 basis point decrease in rate of salary increase
|
-
|
-
|
|||
2022
|
2021
|
2020
|
|||||
Healthcare cost trend rate assumed for next year
|
|
|
|
||||
Rate to which the cost trend rate is assumed to decline
|
|
|
|
||||
Year that the rate reaches the ultimate trend rate
|
|
|
|
||||
Pension plans
|
|||||||||
(as a percentage) |
Long-term
target minimum |
Long-term
target maximum |
2022 |
2021 |
|||||
Equity securities
|
|
|
|
|
|||||
Debt securities
|
|
|
|
|
|||||
Real estate
|
|
|
|
|
|||||
Alternative investments
|
|
|
|
|
|||||
Cash and other investments
|
|
|
|
|
|||||
Total
|
|
|
|||||||
December 31,
2022 |
December 31,
2021 |
||||
Investment in shares of Novartis AG
|
|||||
Number of shares (in millions)
|
|
|
|||
Market value (in USD billions)
|
|
|
|||
(USD millions) |
Pension plans |
Other post-
employment benefit plans |
|||
Novartis Group contributions
|
|||||
2023 (estimated)
|
|
|
|||
Expected future benefit payments
|
|||||
2023
|
|
|
|||
2024
|
|
|
|||
2025
|
|
|
|||
2026
|
|
|
|||
2027
|
|
|
|||
2028–2032
|
|
|
|||
(USD millions)
|
2022
|
2021
|
2020
|
||||
Contributions for defined contribution plans
|
|
|
|
||||
(USD millions)
|
2022
|
2021
|
2020
|
||||
Expense related to equity-based participation plans
|
|
|
|
||||
Liabilities arising from equity-based payment transactions
|
|
|
|
||||
2022
|
2021
|
||||||||
Options (millions) |
Weighted
average exercise price (USD) |
Options (millions) |
Weighted
average exercise price (USD) |
||||||
Options outstanding at January 1
|
|
|
|
|
|||||
Sold or exercised
|
-
|
|
-
|
|
|||||
Outstanding at December 31
|
|
|
|
|
|||||
Exercisable at December 31
|
|
|
|
|
|||||
2022
|
2021
|
||||||||
ADR options (millions) |
Weighted
average exercise price (USD) |
ADR options (millions) |
Weighted
average exercise price (USD) |
||||||
Options outstanding at January 1
|
|
|
|
|
|||||
Sold or exercised
|
-
|
|
-
|
|
|||||
Outstanding at December 31
|
|
|
|
|
|||||
Exercisable at December 31
|
|
|
|
|
|||||
2022
|
2021
|
||||||||
Number of shares in millions |
Weighted
average fair value at grant date in USD |
Number of shares in millions |
Weighted
average fair value at grant date in USD |
||||||
Annual Incentive
|
|||||||||
– RSU
|
|
|
|
|
|||||
– Restricted shares
|
|
|
|
|
|||||
Share savings plans
|
|||||||||
– RSU
|
|
|
|
|
|||||
– Shares
|
|
|
|
|
|||||
Novartis Employee Share Purchase Plan
|
|
|
|||||||
Select North America (RSU)
|
|
|
|
|
|||||
Select outside North America
|
|||||||||
– RSU
|
|
|
|
|
|||||
– Restricted shares
|
|
|
|
|
|||||
Long-Term Performance Plan (PSU)
|
|
|
|
|
|||||
Other share awards
|
|||||||||
– RSU
|
|
|
|
|
|||||
– Restricted shares
|
|
|
|||||||
– Shares
|
|
|
|
|
|||||
Executive Officers
|
Non-Executive Directors
|
Total
|
|||||||||||||||||
(USD millions)
|
2022
|
2021
|
2020
|
2022
|
2021
|
2020
|
2022
|
2021
|
2020
|
||||||||||
Cash and other compensation
|
|
|
|
|
|
|
|
|
|
||||||||||
Post-employment benefits
|
|
|
|
|
|
|
|||||||||||||
Equity-based compensation
|
|
|
|
|
|
|
|
|
|
||||||||||
Total
|
|
|
|
|
|
|
|
|
|
||||||||||
Currency
|
2022
|
2021
|
2020
|
||||||
Dr. Krauer
|
CHF
|
|
|
||||||
(USD millions)
|
2022
|
||
2023
|
|
||
2024
|
|
||
2025
|
|
||
2026
|
|
||
2027
|
|
||
Thereafter
|
|
||
Total
|
|
||
2022
|
|||||||||||
(USD millions) |
Note |
Financial instruments at amortized costs |
Financial instruments at fair value through other comprehensive income |
Financial
instruments at fair value through the consolidated income statement |
Other financial liabilities at amortized costs |
||||||
Cash and cash equivalents
|
16
|
|
|||||||||
Time deposits and short-term investments with original maturity more than 90 days
|
16
|
|
|||||||||
Trade receivables
|
15
|
|
|||||||||
Other receivables and current assets
|
17
|
|
|||||||||
Marketable securities - debt securities
|
16
|
|
|||||||||
Long-term financial investments - equity securities
|
13
|
|
|
||||||||
Long-term financial investments - debt securities
|
13
|
|
|||||||||
Long-term financial investments - fund investments
|
13
|
|
|||||||||
Long-term loans, advances, security deposits and other long-term receivables
|
13
|
|
|||||||||
Associated companies at fair value through profit and loss
|
|
||||||||||
Derivative financial instruments
|
16
|
|
|||||||||
Contingent consideration receivables
|
13/17
|
|
|||||||||
Total financial assets
|
|
|
|
||||||||
|
|||||||||||
Bank and other short-term financial debt
|
21
|
|
|||||||||
Commercial paper
|
21
|
|
|||||||||
Straight bonds
|
19
|
|
|||||||||
Long-term liabilities to banks and other financial institutions
|
19
|
|
|||||||||
Trade payables
|
|
||||||||||
Contingent consideration liabilities (see Note 20/22) and other financial liabilities
|
|
||||||||||
Derivative financial instruments
|
21
|
|
|||||||||
Lease liabilities
|
10
|
|
|||||||||
Total financial liabilities
|
|
|
|
||||||||
2021
|
|||||||||||
(USD millions) |
Note |
Financial instruments at amortized costs |
Financial instruments at fair value through other comprehensive income |
Financial
instruments at fair value through the consolidated income statement |
Other financial liabilities at amortized costs |
||||||
Cash and cash equivalents 1
|
16
|
|
|
||||||||
Time deposits and short-term investments with original maturity more than 90 days
|
16
|
|
|||||||||
Trade receivables
|
15
|
|
|||||||||
Other receivables and current assets
|
17
|
|
|||||||||
Marketable securities - debt securities
|
16
|
|
|||||||||
Long-term financial investments - equity securities
|
13
|
|
|
||||||||
Long-term financial investments - debt securities
|
13
|
|
|||||||||
Long-term financial investments - fund investments
|
13
|
|
|||||||||
Long-term loans, advances, security deposits and other long-term receivables
|
13
|
|
|||||||||
Associated companies at fair value through profit and loss
|
|
||||||||||
Derivative financial instruments
|
16
|
|
|||||||||
Contingent consideration receivables
|
13
|
|
|||||||||
Total financial assets
|
|
|
|
||||||||
|
|||||||||||
Interest-bearing accounts of employees payable on demand
|
21
|
|
|||||||||
Bank and other short-term financial debt
|
21
|
|
|||||||||
Commercial paper
|
21
|
|
|||||||||
Straight bonds
|
19
|
|
|||||||||
Long-term liabilities to banks and other financial institutions
|
19
|
|
|||||||||
Trade payables
|
|
||||||||||
Commitment for repurchase of own shares
|
18/22
|
|
|||||||||
Contingent consideration liabilities (see Note 20/22) and other financial liabilities
|
|
||||||||||
Derivative financial instruments
|
21
|
|
|||||||||
Lease liabilities
|
10
|
|
|||||||||
Total financial liabilities
|
|
|
|
||||||||
1 Includes short-term highly rated government-backed debt securities, with an original maturity of three months or less
|
Contract or underlying principal amount
|
Positive fair values
|
Negative fair values
|
|||||||||||
(USD millions)
|
2022
|
2021
|
2022
|
2021
|
2022
|
2021
|
|||||||
Forward foreign exchange rate contracts
|
|
|
|
|
-
|
-
|
|||||||
Commodity purchase contract
|
|
|
|
|
|||||||||
Options on equity securities
|
|
|
-
|
-
|
|||||||||
Total derivative financial instruments included in marketable securities and in current financial debts
|
|
|
|
|
-
|
-
|
|||||||
2022
|
|||||||||
(USD millions)
|
EUR
|
USD
|
Other
|
Total
|
|||||
Forward foreign exchange rate contracts
|
|
|
|
|
|||||
Commodity purchase contract
|
|
|
|
||||||
Options on equity securities
|
|
|
|||||||
Total derivative financial instruments
|
|
|
|
|
|||||
2021
|
|||||||||
(USD millions)
|
EUR
|
USD
|
Other
|
Total
|
|||||
Forward foreign exchange rate contracts
|
|
|
|
|
|||||
Commodity purchase contract
|
|
|
|||||||
Options on equity securities
|
|
|
|||||||
Total derivative financial instruments
|
|
|
|
|
|||||
2022
|
|||||||||
(USD millions)
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||
Financial assets
|
|||||||||
Marketable securities
|
|||||||||
Debt securities
|
|
|
|||||||
Derivative financial instruments
|
|
|
|||||||
Total marketable securities and derivative financial instruments at fair value
|
|
|
|||||||
Current contingent consideration receivables
|
|
|
|||||||
Long-term financial investments
|
|||||||||
Debt and equity securities
|
|
|
|
|
|||||
Fund investments
|
|
|
|
||||||
Non-current contingent consideration receivables
|
|
|
|||||||
Total long-term financial investments at fair value
|
|
|
|
|
|||||
Associated companies at fair value through profit and loss
|
|
|
|||||||
|
|||||||||
Financial liabilities
|
|||||||||
Current contingent consideration liabilities
|
-
|
-
|
|||||||
Derivative financial instruments
|
-
|
-
|
|||||||
Total current financial liabilities at fair values
|
-
|
-
|
-
|
||||||
Non-current contingent consideration liabilities
|
-
|
-
|
|||||||
Other financial liabilities
|
-
|
-
|
|||||||
Total non-current financial liabilities at fair value
|
-
|
-
|
|||||||
2021
|
|||||||||
(USD millions)
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||
Financial assets
|
|||||||||
Cash and cash equivalents
|
|||||||||
Debt securities 1
|
|
|
|||||||
Total cash and cash equivalents at fair value
|
|
|
|||||||
Marketable securities and derivative financial instruments
|
|||||||||
Debt securities
|
|
|
|
||||||
Derivative financial instruments
|
|
|
|||||||
Total marketable securities and derivative financial instruments at fair value
|
|
|
|
||||||
Long-term financial investments
|
|||||||||
Debt and equity securities
|
|
|
|
||||||
Fund investments
|
|
|
|
||||||
Contingent consideration receivables
|
|
|
|||||||
Total long-term financial investments at fair value
|
|
|
|
||||||
Associated companies at fair value through profit and loss
|
|
|
|||||||
|
|||||||||
Financial liabilities
|
|||||||||
Contingent consideration payables
|
-
|
-
|
|||||||
Derivative financial instruments
|
-
|
-
|
|||||||
Other financial liabilities
|
-
|
-
|
|||||||
Total financial liabilities at fair value
|
-
|
-
|
-
|
||||||
1 Includes short-term highly rated government-backed debt securities, with an original maturity of three months or less
|
2022
|
|||||||||||||
(USD millions) |
Associated
companies at fair value through profit and loss |
Fund investments |
Long-term financial investments |
Contingent consideration receivables |
Contingent consideration liabilities |
Other financial liabiltiies |
|||||||
January 1
|
|
|
|
|
-
|
-
|
|||||||
Fair value gains and other adjustments, including from divestments recognized in the consolidated income statement
|
|
|
|
|
|
||||||||
Fair value losses (including impairments and amortizations) and other adjustments recognized in the consolidated income statement
|
-
|
-
|
-
|
-
|
-
|
||||||||
Fair value adjustments recognized in the consolidated statement of comprehensive income, including currency translation effects
|
|
|
|||||||||||
Purchases
|
|
|
|
-
|
-
|
||||||||
Cash receipts and payments
|
-
|
|
|
||||||||||
Disposals
|
-
|
-
|
|||||||||||
Reclassification
|
-
|
-
|
-
|
||||||||||
December 31
|
|
|
|
|
-
|
-
|
|||||||
|
|||||||||||||
Total of fair value gains and losses recognized in the consolidated income statement for assets and liabilities held at December 31, 2022
|
-
|
-
|
-
|
|
|
-
|
|||||||
2021
|
|||||||||||
(USD millions) |
Associated
companies at fair value through profit and loss |
Fund investments |
Long-term financial investments |
Contingent consideration receivables |
Contingent consideration payables |
||||||
January 1
|
|
|
|
|
-
|
||||||
Fair value gains and other adjustments, including from divestments recognized in the consolidated income statement
|
|
|
|
|
|
||||||
Fair value losses (including impairments and amortizations) and other adjustments recognized in the consolidated income statement
|
-
|
-
|
-
|
-
|
-
|
||||||
Fair value adjustments recognized in the consolidated statement of comprehensive income, including currency translation effects
|
-
|
-
|
|
-
|
|
||||||
Purchases
|
|
|
|
-
|
|||||||
Cash receipts and payments
|
-
|
|
|||||||||
Disposals
|
-
|
-
|
-
|
||||||||
Reclassification
|
-
|
-
|
|||||||||
December 31
|
|
|
|
|
-
|
||||||
|
|||||||||||
Total of fair value gains and losses recognized in the consolidated income statement for assets and liabilities held at December 31, 2021
|
-
|
|
|
|
-
|
||||||
(USD millions)
|
2022
|
2021
|
|||
Listed equity securities
|
|
|
|||
Non-listed equity securities
|
|
|
|||
Total equity securities
|
|
|
|||
|
2022
|
|||||||||||||
(USD millions) |
Due within one month |
Due later than
one month but less than three months |
Due later than
three months but less than one year |
Due later than
one year but less than five years |
Due after five years |
Total |
|||||||
Current assets
|
|||||||||||||
Marketable securities, time deposits and short-term investments with original maturity more than 90 days and accrued interest
|
|
|
|
|
|
||||||||
Commodities
|
|
|
|||||||||||
Derivative financial instruments
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
|
|
|
||||||||||
Total current financial assets
|
|
|
|
|
|
||||||||
|
|||||||||||||
Non-current liabilities
|
|||||||||||||
Financial debt
|
-
|
-
|
-
|
||||||||||
Financial debt - undiscounted
|
-
|
-
|
-
|
||||||||||
Total non-current financial debt
|
-
|
-
|
-
|
||||||||||
|
|||||||||||||
Current liabilities
|
|||||||||||||
Financial debt
|
-
|
-
|
-
|
-
|
|||||||||
Financial debt - undiscounted
|
-
|
-
|
-
|
-
|
|||||||||
Derivative financial instruments
|
-
|
-
|
-
|
-
|
|||||||||
Total current financial debt
|
-
|
-
|
-
|
-
|
|||||||||
|
|||||||||||||
Net debt
|
|
|
-
|
-
|
-
|
-
|
|||||||
2021
|
|||||||||||||
(USD millions) |
Due within one month |
Due later than
one month but less than three months |
Due later than
three months but less than one year |
Due later than
one year but less than five years |
Due after five years |
Total |
|||||||
Current assets
|
|||||||||||||
Marketable securities, time deposits and short-term investments with original maturity more than 90 days and accrued interest
|
|
|
|
|
|
|
|||||||
Commodities
|
|
|
|||||||||||
Derivative financial instruments
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
|
|
|
||||||||||
Total current financial assets
|
|
|
|
|
|
|
|||||||
|
|||||||||||||
Non-current liabilities
|
|||||||||||||
Financial debt
|
-
|
-
|
-
|
||||||||||
Financial debt - undiscounted
|
-
|
-
|
-
|
||||||||||
Total non-current financial debt
|
-
|
-
|
-
|
||||||||||
|
|||||||||||||
Current liabilities
|
|||||||||||||
Financial debt
|
-
|
-
|
-
|
-
|
|||||||||
Financial debt - undiscounted
|
-
|
-
|
-
|
-
|
|||||||||
Derivative financial instruments
|
-
|
-
|
-
|
-
|
|||||||||
Total current financial debt
|
-
|
-
|
-
|
-
|
|||||||||
|
|||||||||||||
Net debt
|
|
|
-
|
-
|
-
|
-
|
|||||||
2022
|
|||||||||
(USD millions) |
Due within one month |
Due later than
one month but less than three months |
Due later than
three months but less than one year |
|
Total |
||||
Derivative financial instruments and accrued interest on derivative financial instruments
|
|||||||||
Potential outflows in various currencies - from financial derivative liabilities
|
-
|
-
|
-
|
-
|
|||||
Potential inflows in various currencies - from financial derivative assets
|
|
|
|
|
|||||
2021
|
|||||||||
(USD millions) |
Due within one month |
Due later than
one month but less than three months |
Due later than
three months but less than one year |
|
Total |
||||
Derivative financial instruments and accrued interest on derivative financial instruments
|
|||||||||
Potential outflows in various currencies - from financial derivative liabilities
|
-
|
-
|
-
|
-
|
|||||
Potential inflows in various currencies - from financial derivative assets
|
|
|
|
|
|||||
2022
|
|||||||||||
(USD millions) |
Due within three months |
Due later than
three months but less than one year |
Due later than
one year but less than five years |
Due after five years |
Total |
||||||
Contractual interest on non-current liabilities
|
-
|
-
|
-
|
-
|
-
|
||||||
Lease liabilities 1
|
-
|
-
|
-
|
-
|
-
|
||||||
Trade payables
|
-
|
-
|
-
|
||||||||
Contingent consideration liabilities
|
-
|
-
|
-
|
-
|
-
|
||||||
1 Note 10 provides additional disclosures related to lease liabilities.
|
2021
|
|||||||||||
(USD millions) |
Due within three months |
Due later than
three months but less than one year |
Due later than
one year but less than five years |
Due after five years |
Total |
||||||
Contractual interest on non-current liabilities
|
-
|
-
|
-
|
-
|
-
|
||||||
Lease liabilities 1
|
-
|
-
|
-
|
-
|
-
|
||||||
Trade payables
|
-
|
-
|
-
|
||||||||
Commitment for repurchase of own shares
|
-
|
-
|
|||||||||
Contingent consideration liabilities
|
-
|
-
|
-
|
-
|
-
|
||||||
1 Note 10 provides additional disclosures related to lease liabilities.
|
(USD millions)
|
2022
|
2021
|
|||
5% increase in foreign currency exchange rates against USD
|
-
|
|
|||
5% decrease in foreign currency exchange rates against USD
|
|
-
|
|||
(USD millions)
|
2022
|
2021
|
|||
5% increase in foreign currency exchange rates against USD
|
|
|
|||
5% decrease in foreign currency exchange rates against USD
|
-
|
-
|
|||
(USD millions)
|
2022
|
2021
|
|||
15% increase in equity prices
|
|
|
|||
15% decrease in equity prices
|
-
|
-
|
|||
(USD millions)
|
2022
|
2021
|
|||
15% increase in equity prices
|
|
|
|||
15% decrease in equity prices
|
-
|
-
|
|||
As at December 31, 2022 |
Share
capital1 |
Equity
interest |
|||||||
Algeria
|
|||||||||
|
|
DZD
|
|
m
|
|
||||
Argentina
|
|||||||||
|
|
ARS
|
|
m
|
|
||||
Australia
|
|||||||||
|
|
AUD
|
|
|
|||||
|
|
AUD
|
|
m
|
|
||||
|
|
AUD
|
|
m
|
|
||||
Austria
|
|||||||||
|
|
EUR
|
|
m
|
|
||||
|
|
EUR
|
|
m
|
|
||||
|
|
EUR
|
|
m
|
|
||||
|
|
EUR
|
|
m
|
|
||||
Bangladesh
|
|||||||||
|
|
BDT
|
|
m
|
|
||||
Belgium
|
|||||||||
|
|
EUR
|
|
m
|
|
||||
|
|
EUR
|
|
m
|
|
||||
|
|
EUR
|
|
m
|
|
||||
Bermuda
|
|||||||||
|
|
USD
|
|
|
|||||
|
|
CHF
|
|
|
|||||
|
|
CHF
|
|
|
|||||
|
|
CHF
|
|
m
|
|
||||
|
|
USD
|
|
|
|||||
Brazil
|
|||||||||
|
|
BRL
|
|
m
|
|
||||
|
|
BRL
|
|
m
|
|
||||
Canada
|
|||||||||
|
|
CAD
|
|
m
|
|
||||
|
|
CAD
|
|
m
|
|
||||
Chile
|
|||||||||
|
|
CLP
|
|
bn
|
|
||||
China
|
|||||||||
|
|
USD
|
|
m
|
|
||||
|
|
HKD
|
|
|
|||||
|
|
USD
|
|
m
|
|
||||
|
|
USD
|
|
m
|
|
||||
|
|
USD
|
|
m
|
|
||||
|
|
USD
|
|
m
|
|
||||
Colombia
|
|||||||||
|
|
COP
|
|
bn
|
|
||||
Croatia
|
|||||||||
|
|
HRK
|
|
m
|
|
||||
Czech Republic
|
|||||||||
|
|
CZK
|
|
m
|
|
||||
|
|
CZK
|
|
m
|
|
||||
Denmark
|
|||||||||
|
|
DKK
|
|
m
|
|
||||
|
|
DKK
|
|
m
|
|
||||
Ecuador
|
|||||||||
|
|
USD
|
|
m
|
|
||||
Egypt
|
|||||||||
|
|
EGP
|
|
bn
|
|
||||
|
|
EGP
|
|
|
|||||
Finland
|
|||||||||
|
|
EUR
|
|
|
|||||
As at December 31, 2022 |
Share
capital1 |
Equity
interest |
|||||||
France
|
|||||||||
|
|
EUR
|
|
m
|
|
||||
|
|
EUR
|
|
m
|
|
||||
|
|
EUR
|
|
|
|||||
|
|
EUR
|
|
m
|
|
||||
|
|
EUR
|
|
m
|
|
||||
|
|
EUR
|
|
m
|
|
||||
|
|
EUR
|
|
m
|
|
||||
Germany
|
|||||||||
|
|
EUR
|
|
m
|
|
||||
|
|
EUR
|
|
|
|||||
|
|
EUR
|
|
m
|
|
||||
|
|
EUR
|
|
m
|
|
||||
|
|
EUR
|
|
|
|||||
|
|
EUR
|
|
|
|||||
|
|
EUR
|
|
m
|
|
||||
|
|
EUR
|
|
m
|
|
||||
|
|
EUR
|
|
|
|||||
Greece
|
|||||||||
|
|
EUR
|
|
m
|
|
||||
Hungary
|
|||||||||
|
|
HUF
|
|
m
|
|
||||
|
|
HUF
|
|
m
|
|
||||
India
|
|||||||||
|
|
INR
|
|
m
|
|
||||
|
|
INR
|
|
m
|
|
||||
|
|
INR
|
|
m
|
|
||||
Indonesia
|
|||||||||
|
|
IDR
|
|
bn
|
|
||||
Ireland
|
|||||||||
|
|
EUR
|
|
|
|||||
|
|
EUR
|
|
|
|||||
|
|
EUR
|
|
|
|||||
Israel
|
|||||||||
|
|
ILS
|
|
|
|||||
Italy
|
|||||||||
|
|
EUR
|
|
m
|
|
||||
|
|
EUR
|
|
|
|||||
|
|
EUR
|
|
m
|
|
||||
Japan
|
|||||||||
|
|
JPY
|
|
m
|
|
||||
|
|
JPY
|
|
m
|
|
||||
|
|
JPY
|
|
m
|
|
||||
Latvia
|
|||||||||
|
|
EUR
|
|
m
|
|
||||
Luxembourg
|
|||||||||
|
|
USD
|
|
m
|
|
||||
|
|
USD
|
|
|
|||||
Malaysia
|
|||||||||
|
|
MYR
|
|
m
|
|
||||
Mexico
|
|||||||||
|
|
MXN
|
|
m
|
|
||||
|
|
MXN
|
|
m
|
|
||||
Morocco
|
|||||||||
|
|
MAD
|
|
m
|
|
||||
Netherlands
|
|||||||||
|
|
EUR
|
|
m
|
|
||||
|
|
EUR
|
|
m
|
|
||||
|
|
EUR
|
|
|
|||||
|
|
EUR
|
|
|
|||||
New Zealand
|
|||||||||
|
|
NZD
|
|
|
|||||
As at December 31, 2022 |
Share
capital1 |
Equity
interest |
|||||||
Norway
|
|||||||||
|
|
NOK
|
|
m
|
|
||||
Pakistan
|
|||||||||
|
|
PKR
|
|
bn
|
|
||||
Panama
|
|||||||||
|
|
USD
|
|
|
|||||
Philippines
|
|||||||||
|
|
PHP
|
|
m
|
|
||||
|
|
PHP
|
|
m
|
|
||||
Poland
|
|||||||||
|
|
PLN
|
|
m
|
|
||||
|
|
PLN
|
|
m
|
|
||||
|
|
PLN
|
|
m
|
|
||||
Portugal
|
|||||||||
|
|
EUR
|
|
|
|||||
|
|
EUR
|
|
m
|
|
||||
|
|
EUR
|
|
|
|||||
Romania
|
|||||||||
|
|
RON
|
|
m
|
|
||||
|
|
RON
|
|
m
|
|
||||
Russian Federation
|
|||||||||
|
|
RUB
|
|
m
|
|
||||
|
|
RUB
|
|
m
|
|
||||
|
|
RUB
|
|
m
|
|
||||
Saudi Arabia
|
|||||||||
|
|
SAR
|
|
m
|
|
||||
Singapore
|
|||||||||
|
|
SGD
|
|
|
|||||
|
|
SGD
|
|
m
|
|
||||
|
|
SGD
|
|
m
|
|
||||
Slovakia
|
|||||||||
|
|
EUR
|
|
m
|
|
||||
Slovenia
|
|||||||||
|
|
EUR
|
|
m
|
|
||||
|
|
EUR
|
|
m
|
|
||||
South Africa
|
|||||||||
|
|
ZAR
|
|
m
|
|
||||
|
|
ZAR
|
|
m
|
|
||||
South Korea
|
|||||||||
|
|
KRW
|
|
bn
|
|
||||
Spain
|
|||||||||
|
|
EUR
|
|
m
|
|
||||
|
|
EUR
|
|
m
|
|
||||
|
|
EUR
|
|
|
|||||
|
|
EUR
|
|
m
|
|
||||
|
|
EUR
|
|
m
|
|
||||
Sweden
|
|||||||||
|
|
SEK
|
|
m
|
|
||||
Switzerland
|
|||||||||
|
|
CHF
|
|
m
|
|
||||
|
|
CHF
|
|
m
|
|
||||
|
|
CHF
|
|
|
|||||
|
|
CHF
|
|
|
|||||
|
|
--
|
--
|
--
|
|||||
|
|
--
|
--
|
--
|
|||||
|
|
--
|
--
|
--
|
|||||
|
|
--
|
--
|
--
|
|||||
|
|
--
|
--
|
--
|
|||||
|
|
CHF
|
|
m
|
|
||||
|
|
CHF
|
|
|
|||||
|
|
CHF
|
|
m
|
|
||||
|
|
CHF
|
|
m
|
|
||||
|
|
CHF
|
|
m
|
|
||||
|
|
CHF
|
|
|
|||||
|
|
CHF
|
|
m
|
|
||||
|
|
CHF
|
|
|
|||||
|
|
CHF
|
|
|
|||||
|
|
CHF
|
|
|
|||||
|
|
CHF
|
|
m
|
|
||||
|
|
CHF
|
|
m
|
|
||||
|
|
CHF
|
|
|
|||||
As at December 31, 2022 |
Share
capital1 |
Equity
interest |
|||||||
Taiwan
|
|||||||||
|
|
TWD
|
|
m
|
|
||||
Thailand
|
|||||||||
|
|
THB
|
|
m
|
|
||||
Turkey
|
|||||||||
|
|
TRY
|
|
m
|
|
||||
|
|
TRY
|
|
m
|
|
||||
|
|
TRY
|
|
m
|
|
||||
|
|
TRY
|
|
m
|
|
||||
Ukraine
|
|||||||||
|
|
UAH
|
|
m
|
|
||||
United Arab Emirates
|
|||||||||
|
|
AED
|
|
m
|
|
||||
United Kingdom
|
|||||||||
|
|
GBP
|
|
m
|
|
||||
|
|
GBP
|
|
m
|
|
||||
|
|
GBP
|
|
m
|
|
||||
|
|
GBP
|
|
|
|||||
|
|
GBP
|
|
m
|
|
||||
|
|
GBP
|
|
|
|||||
|
|
GBP
|
|
m
|
|
||||
United States of America
|
|||||||||
|
|
USD
|
|
m
|
|
||||
|
|
USD
|
|
|
|||||
|
|
USD
|
|
|
|||||
|
|
USD
|
|
|
|||||
|
|
--
|
--
|
--
|
|||||
|
|
USD
|
|
|
|||||
|
|
USD
|
|
|
|||||
|
|
USD
|
|
|
|||||
|
|
--
|
--
|
--
|
|||||
|
|
USD
|
|
|
|||||
|
|
USD
|
|
|
|||||
|
|
USD
|
|
|
|||||
|
|
USD
|
|
|
|||||
|
|
USD
|
|
|
|||||
|
|
USD
|
|
|
|||||
|
|
USD
|
|
m
|
|
||||
|
|
USD
|
|
|
|||||
|
|
USD
|
|
|
|||||
Venezuela
|
|||||||||
|
|
VES
|
|
|
|||||
Vietnam
|
|||||||||
|
|
VND
|
|
bn
|
|
||||
In addition, the Group is represented by subsidiaries and associated companies with total assets or net sales to third parties below USD 25 million in the following countries: Bosnia and Herzegovina, Bulgaria, Cameroon, Dominican Republic, Ghana, Guatemala, Ivory Coast, Kazakhstan, Kenya, Kuwait, North Macedonia, Nigeria, Peru, Senegal and Uruguay.
|
|||||||||
1 Share capital may not reflect the taxable share capital and does not include any paid-in surplus.
|
|||||||||
2 Significant subsidiary under SEC Regulation S-X Rule 1-02(w)
|
|||||||||
3 Fully consolidated Foundation
|
|||||||||
m = million; bn = billion
|
Report of Independent Registered Public Accounting Firm
Report of Independent Registered Public Accounting Firm