Interim Results

Novo Nordisk increased sales by 14% in the first half of 2005

Expectation for operating profit growth increased to around 10% for 2005

 

o        Sales of insulin analogues increased by 67%

o        Sales of NovoSeven® increased by 14%

o        Sales in North America increased by 28%

 

 

 

 

 

 

Financial statement for the first six months of 2005

This interim report has been prepared in accordance with International Financial Reporting Standards (IFRS). The accounting policies used in the interim report are consistent with those used in the Annual Report 2004, which includes the expense impact of share-based payment schemes. The interim report has not been audited.

Amounts in DKK million, except average number of shares outstanding, earnings per share and full-time employees.

 

Sales development by segments

Sales in the first six months of 2005 increased by 15% measured in local currencies and by 14% in Danish kroner. Growth was realised both within diabetes care and biopharmaceuticals - primarily driven by strategically important products such as the insulin analogues as well as NovoSeven®. Furthermore, sales of growth hormone therapy products also contributed to growth.

 

 

 

Sales growth was realised in all regions and North America now constitutes 28% of total sales.  

 

Sales of diabetes care products increased by 16% in local currencies compared to the first six months of 2004 and by 15% in Danish kroner to DKK 11,006 million.

 

Sales of insulin analogues, human insulin and insulin-related products increased by 18% measured in local currencies and by 17% to DKK 10,239 million in Danish kroner. All regions contributed to growth measured in local currencies as well as in Danish kroner.

 

Novo Nordisk continues to be the global leader in the insulin market with a total market share of 50% and an insulin analogue market share of more than 30%, measured in volume.

 

Sales of insulin analogues increased by 67% in local currencies and by 63% in Danish kroner to DKK 3,140 million in the first six months of 2005. Sales of insulin analogues contributed with 62% of the overall growth in local currencies and constitute more than 30% of Novo Nordisk's total sales of all insulin and insulin-related products.

 

Sales in North America increased by 45% in local currencies in the first six months of 2005 and by 39% in Danish kroner, reflecting solid penetration of the insulin analogues NovoLog® and NovoLog® Mix 70/30. In the US market, Novo Nordisk now holds more than 36% of the total insulin market and over 20% of the analogue market, measured by volume. Sales of human insulin products also increased due to increased volumes and higher average prices.

 

Sales in Europe increased by 8% in local currencies and by 9% in Danish kroner, with growth primarily driven by the portfolio of insulin analogues, including Levemir®, which has now been introduced in 11 European countries.

 

Sales in Japan & Oceania increased by 13% in local currencies and by 11% in Danish kroner, with growth primarily reflecting sales of NovoRapid® and NovoRapid® Mix 30, supported by the continued switch from durable to prefilled devices.

 

Sales in International Operations increased by 21% in local currencies and by 19% in Danish kroner. Sales were dominated by human insulin but insulin analogues continue to add to overall growth in the region. China was the primary growth driver and contributed more than 15% of total sales in International Operations in the first six months of 2005.  

 

Sales of oral antidiabetic products decreased compared to the same period in 2004 by 2% in local currencies and 4% in Danish kroner to DKK 767 million. While the sales development was positive both in Europe and International Operations, the overall decrease in sales compared to the same period last year mainly reflects lower sales to wholesalers in the US market during the first six months of 2005.

 

Sales of biopharmaceutical products increased by 12% in local currencies compared to the first six months of 2004 and by 10% in Danish kroner to DKK 4,535 million.

 

Sales of NovoSeven® increased by 14% in local currencies compared to the same period last year and by 11% in Danish kroner to DKK 2,338 million, with sales growth primarily driven by North America, but also International Operations and Japan & Oceania contributed to growth. In Europe, sales growth resumed during the second quarter of 2005.  

 

The sales growth of NovoSeven® was influenced by several factors during the first six months of 2005. Due to the high penetration within spontaneous bleeds in congenital inhibitor patients, the predominant part of the growth within the inhibitor segment has been generated by treatment of acquired haemophilia patients and usage of NovoSeven® in connection with elective surgery. Treatment of spontaneous bleeds for congenital inhibitor patients remains the largest area of use. In addition, sales are perceived to have been positively affected by increased investigational use of NovoSeven®.  

 

Sales of growth hormone therapy products increased by 19% in local currencies and by 17% in Danish kroner to DKK 1,300 million. All regions contributed to the sales increase compared to the same period last year, with North America and Europe as the main growth drivers. Sales have been positively impacted by the NordiFlex® prefilled delivery device.

 

Other products

Sales of other products within biopharmaceuticals, which predominantly consist of hormone replacement therapy (HRT) related products, increased by 1% in local currencies and decreased by 1% in Danish kroner to DKK 897 million. While total sales of HRT products continue to be negatively impacted by challenging market conditions, sales in the US increased during the first six months due to higher market share and higher average prices.

 

Costs, licence fees and other operating income

The cost of goods sold increased by 13% to DKK 4,295 million, leaving the gross margin at 72.4%, compared to 72.2% in the first six months of 2004. The gains from an improved product mix and increased productivity were partially offset by an adverse currency impact, leaving the underlying gross margin improvement at 0.4 percentage point. The gross margin was negatively impacted by a write-down on inventories of animal insulin crystals, which has been included in the cost of goods sold.

 

Total non-production-related costs increased by 13% to DKK 7,662 million. The increase in non-production-related costs reflects especially costs related to sales and distribution, which increased in line with sales. This reflects the increase in the US diabetes care sales force implemented during the second quarter of 2004 as well as costs related to the launch of Levemir® in the European market.

 

Licence fees and other operating income in the first six months of 2005 were DKK 269 million, compared to DKK 303 million in the same period last year. In the second quarter of 2005 a non-recurring income of around DKK 100 million was realised from a sale-and-leaseback transaction involving certain office buildings in Denmark.  

 

Net financials

Net financials showed an income of DKK 278 million in the first six months of 2005 compared to an income of DKK 107 million in the same period in 2004. A non-recurring gain of around DKK 250 million was recorded in the first quarter of 2005 from the sale of shares in Ferrosan A/S.

 

The foreign exchange gains were DKK 135 million compared to a gain of DKK 195 million in the same period last year. The lower level of foreign exchange gains mainly reflects lower income from foreign exchange hedging activities, which include forward contracts and foreign exchange options. The effect of these hedging activities has been negatively impacted by the higher level of the US dollar versus the Danish krone in the first six months of 2005 compared to the level prevailing in 2004. At the end of June 2005, an unrealised loss of DKK 386 million has, in accordance with IFRS, been deferred for profit and loss recognition in the period when hedged cash flows occur.   

 

Reflecting the continued appreciation of the US dollar and related currencies, Novo Nordisk now expects to report Danish kroner sales growth in 2005 of 12-15%, and a similar level of growth measured in local currencies.

 

The expectation for reported operating profit growth is increased from around 5% to around 10%. This reflects the improved exchange rate environment as well as the non-recurring income from the sale-and-leaseback transaction and also the expected costs related to a planned employee share offering during the fourth quarter of 2005 - as further described below under 'Employee share programme'. Excluding the impact from currency movements and non-recurring items, underlying operating profit is still expected to grow by around 15%.  

 

 

Novo Nordisk now expects the tax rate for 2005 to be slightly below 29% as a consequence of the reduction in the Danish corporate income tax rate from 30% to 28%, effective for the income year 2005, which was formally approved by the Danish parliament (Folketinget) in June 2005.

 

As previously communicated, the expected tax rate for 2005 is reduced by close to two percentage points by two factors of a non-recurring nature, each of which account for close to one percentage-point reduction in the tax rate:

 

Furthermore, the tax-exempt status of the accounting gain related to ZymoGenetics' public offering of new shares will reduce the expected tax rate for 2005 by around half a percentage point on a non-recurring basis.

 

Novo Nordisk still expects capital expenditure of close to DKK 4 billion in 2005. Depreciations, amortisation and impairment losses are still expected to be around DKK 1.9 billion, whereas free cash flow is now expected to be around DKK 3 billion.

 

All of the above expectations are provided that currency exchange rates remain at the current level for the rest of 2005.

 

Novo Nordisk has hedged expected net cash flows in relation to US dollars, Japanese yen and British pounds for 10, 9 and 9 months, respectively. In accordance with IFRS, the financial impact from foreign exchange hedging contracts will be included in 'Net financials' as the underlying future operational cash flow materialises.  

 

 

As previously communicated, Levemir® was approved by the US Food and Drug Administration (FDA) in June 2005, and Novo Nordisk is thereby the only company with a complete range of insulin analogues approved in the US, encompassing rapid-acting NovoLog®, premixed NovoLog® Mix 70/30 and now also the long-acting analogue Levemir®. Novo Nordisk expects to launch Levemir® in the US market within 12 months following the approval.

 

In June 2005, Novo Nordisk received a positive opinion from the European regulatory authorities' Committee for Medicinal Products for Human Use (CHMP) for the premixed analogue insulin products NovoMix® 50 and NovoMix® 70. Following the positive opinion from CHMP, Novo Nordisk expects to receive marketing authorisation from the European Commission for NovoMix® 50 and NovoMix® 70 in the second half of 2005.

 

In June 2005, Novo Nordisk filed an application with the FDA for marketing approval of NovoLog® Mix 50/50 and NovoLog® Mix 30/70 (the US trade names for NovoMix® 50 and NovoMix® 70).

 

As previously communicated, Novo Nordisk filed an application with EMEA (The European Medicines Agency) in January 2005 for marketing approval for the use of NovoSeven® in blunt trauma. The filing was based on results obtained from a phase 2 clinical study. As a consequence of subsequent feedback from EMEA, Novo Nordisk has, however, decided to voluntarily withdraw the registration file.

 

To support an updated European filing at a later stage, Novo Nordisk has, as previously announced, initiated a confirmatory phase 3 study in the EU and other countries outside the US. This study is now expected to encompass around 1,000 patients.

 

In the US, the current FDA-guided phase 3 study design for the use of NovoSeven® in trauma is being evaluated in terms of implied patient benefits versus potential number of patients in the study and related timelines. An update on the US clinical strategy is expected to be provided in connection with the release of financial results for the first nine months of 2005.

 

Novo Nordisk still expects to file an application in Europe for marketing approval for the use of NovoSeven® in connection with intracerebral haemorrhage (ICH). The filing, which will be based on clinical data from phase 2 studies, is now expected to take place during the fourth quarter of 2005. The filing may, as previously announced, be supported by additional safety data from the ongoing global confirmatory phase 3 study. 

 

This phase 3 study has been initiated both in Europe and the US. It is now expected to encompass around 675 patients in clinical centres located in the US, Europe, South America and Asia. The clinical results from the study will be pivotal to the future filing with the FDA for US marketing approval for the use of NovoSeven® in connection with ICH.

 

Within HRT Novo Nordisk has completed a successful phase 3 study and, based on this, expects to file in the fourth quarter of 2005 for marketing approval with EMEA and the FDA of an ultra-low dose version of Activelle® (Activella® in the US), Novo Nordisk's continuous-combined HRT product. This is expected to support the move towards even lower-dose versions of HRT products.

 

Total equity was DKK 25,620 million at the end of the first six months of 2005, equal to 67.9% of total assets, compared to 70.8% at the end of 2004. Please refer to appendix 5 for further elaboration of changes in equity during 2005.

 

Treasury shares and share repurchase programme

As per 10 August 2005, Novo Nordisk A/S and its wholly-owned affiliates owned 28,268,127 of its own B shares, corresponding to 7.97% of the total share capital.

 

In 2005, Novo Nordisk has so far repurchased 5.9 million B shares at a cash value of DKK 1.8 billion, and the company still expects to repurchase additional B shares during the remaining part of 2005 equivalent to a cash value of DKK 1.2 billion.

 

Employee share programme

To stimulate the ownership interest in the company and to give an incentive to the employees, the Board of Directors has approved a global offering of shares to the employees in the autumn of 2005. The offering is expected to include approximately 1 million B shares (equivalent to around 0.3% of the total share capital), which will be sold from the company's holding of treasury shares at a price of DKK 150 per share. The shares in the programme will generally have a minimum restricted period of five years for employees in Denmark and three years for employees outside Denmark.

 

The accounting impact of the offering will be calculated based on the average market price in the offering period. The estimated pre-tax cost of the offering will be in the range of DKK 150-200 million.

 

 

During the second half of 2004 there was an increasing demand from medical journals, industry associations and general media for investigators and pharmaceutical companies to ensure public access to clinical trial data. This includes information on study protocols for clinical trials to be initiated or presently ongoing and, furthermore, providing public access to results from all trials that have been executed for products marketed in at least one country.

 

Novo Nordisk has decided to fulfil these requirements by submitting the data to two external databases; www.clinicaltrials.gov and www.clinicalstudyresults.org.

 

Novo Nordisk posted the first clinical trial results in April 2005 and expects to achieve full compliance by 1 October 2005. All hypothesis testing clinical trials to be initiated after 1 July 2005 are being registered prior to patient enrolment, and registration of currently ongoing trials will be fully implemented by the deadline set by the ICMJE (International Committee of Medical Journal Editors) of 13 September 2005.

 

At 14.00 CET today, corresponding to 8.00 am New York time, a conference call will be held. Investors will be able to listen in via a link on novonordisk.com, which can be found under 'Investors - Conference calls'. Presentation material for the conference call will be made available approximately one hour before on the same page.

 

The above sections contain forward-looking statements as the term is defined in the US Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations or forecasts of events such as new product introductions, product approvals and financial performance.

 

Such forward-looking statements are subject to risks, uncertainties and inaccurate assumptions. This may cause actual results to differ materially from expectations. Factors that may affect future results include interest rate and currency exchange rate fluctuations, delay or failure of development projects, production problems, unexpected contract breaches or terminations, government-mandated or market-driven price decreases for Novo Nordisk's products, introduction of competing products, Novo Nordisk's ability to successfully market both new and existing products, exposure to product liability and other lawsuits, changes in reimbursement rules and governmental laws and related interpretation thereof, and unexpected growth in costs and expenses. 

 

Risks and uncertainties are further described in reports filed by Novo Nordisk with the US Securities and Exchange Commission (SEC) including the company's Form 20-F, which was filed on 21 February 2005. Please also refer to the section 'Risk Management' in the Annual Report 2004. Novo Nordisk is under no duty to update any of the forward-looking statements or to conform such statements to actual results, unless required by law.

 

 

 

Management statement

Today, the Board of Directors and Executive Management reviewed and approved the interim report and accounts of Novo Nordisk A/S for the first six months of 2005.

The interim report and accounts have been prepared in accordance with International Financial Reporting Standards and the additional Danish disclosure requirements applying to listed companies' interim reports and accounts. The interim report has not been audited.

In our opinion the accounting policies used are appropriate and the overall presentation of the interim report and accounts is adequate. Furthermore, in our opinion the interim report and accounts give a true and fair view of the Group's assets, liabilities, financial position and of the results of the operations and consolidated cash flows for the period under review.

 

Bagsværd 11 August 2005

 

 

 

Contacts for further information:
 

Media:	Investors:
Outside North America:	Outside North America:
Mike Rulis	Mogens Thorsager Jensen
Tel: (+45) 4442 3573	Tel: (+45) 4442 7945
E-mail: mike@novonordisk.com	E-mail: mtj@novonordisk.com
	Mads Veggerby Lausten
	Tel: (+45) 4443 7919
	E-mail: mlau@novonordisk.com
In North America:	In North America:
Susan T Jackson	Any of the above contacts or
Tel: (+1) 609 919 7776 E-mail: stja@novonordisk.com	tel: (+1) 609 919 7937

 

 

Further information on Novo Nordisk is available on the company's internet homepage at the address: novonordisk.com

 

 

Appendix 1:

Quarterly numbers in DKK
(Amounts in DKK million, except number of employees, earnings per share and number of shares outstanding.)
									% change
	2005			2004					Q2 2004 -
	Q2	Q1		Q4	Q3	Q2	Q1		Q2 2005
Sales	8,283	7,258		7,944	7,408	7,164	6,515		16%
Gross profit	6,073	5,173		5,783	5,318	5,219	4,661		16%
Gross margin	73.3%	71.3%		72.8%	71.8%	72.9%	71.5%
Sales and distribution costs	2,267	2,139		2,364	2,039	1,991	1,886		14%
Percent of sales	27.4%	29.5%		29.8%	27.5%	27.8%	28.9%
Research and development costs	1,197	1,106		1,243	1,086	983	1,040		22%
Percent of sales	14.5%	15.2%		15.6%	14.7%	13.7%	16.0%
Administrative expenses	470	483		534	502	431	477		9%
Percent of sales	5.7%	6.7%		6.7%	6.8%	6.0%	7.3%
Licence fees and other operating income (net)	202	67		213	59	71	232		185%
Operating profit	2,341	1,512		1,855	1,750	1,885	1,490		24%
Operating margin	28.3%	20.8%		23.4%	23.6%	26.3%	22.9%
Share of profit/(loss) in associated companies	(43)	238		(20)	12	(40)	(69)		8%
Financial income	238	114		491	125	104	178		129%
Financial expenses	193	76		186	52	44	22		339%
Profit before taxation	2,343	1,788		2,140	1,835	1,905	1,577		23%
Net profit	1,684	1,232		1,462	1,226	1,272	1,053		32%
Depreciation, amortisation and impairment losses	422	412		549	576	387	380		9%
Capital expenditure	735	723		1,092	873	642	392		14%
Cash flow from operating activities	2,105	1,343		2,103	2,426	1,710	1,350		23%
Free cash flow	1,332	614		903	1,533	956	886		39%
Equity	25,620	25,729		26,504	25,557	24,827	23,942		3%
Total assets	37,731	36,497		37,433	35,587	34,248	33,838		10%
Equity ratio	67.9%	70.5%		70.8%	71.8%	72.5%	70.8%
Full-time employees at the end of the period	21,246	20,942		20,285	20,001	19,631	19,179		8%
Diluted earnings per share (in DKK)*	5.09	3.70		4.37	3.63	3.74	3.10		36%
Average number of shares outstanding (million)*
- used for diluted earnings per share	330.8	333.2		334.7	338.2	339.8	339.8		-3%
Sales by business segments:
Insulin analogues	1,692	1,448		1,332	1,252	1,037	886		63%
Human insulin and insulin-related sales	3,753	3,346		3,944	3,593	3,640	3,206		3%
Oral antidiabetic products (OAD)	391	376		403	445	379	416		3%
Diabetes care total	5,836	5,170		5,679	5,290	5,056	4,508		15%
NovoSeven®	1,248	1,090		1,170	1,086	1,084	1,019		15%
Growth hormone therapy	704	596		651	559	557	550		26%
Hormone replacement therapy	410	328		364	396	389	339		5%
Other products	85	74		80	77	78	99		9%
Biopharmaceuticals total	2,447	2,088		2,265	2,118	2,108	2,007		16%
Sales by geographic segments:
Europe	3,405	3,006		3,364	3,057	3,106	2,884		10%
North America	2,282	2,092		1,816	2,098	1,837	1,727		24%
International Operations	1,395	1,128		1,559	1,171	1,134	980		23%
Japan & Oceania	1,201	1,032		1,205	1,082	1,087	924		10%
Segment operating profit:
Diabetes care	1,235	750		1,047	746	936	675		32%
Biopharmaceuticals	1,106	762		808	1,004	949	815		17%
*) For Q2 2005 diluted earnings per share/ADR of a nominal value of DKK 2, which include options on Novo Nordisk's treasury
shares with an exercise price below current market value, have been based on an average number of shares of 330,804,579.

 

Appendix 2:

Quarterly numbers in EUR
(Amounts in EUR million, except number of employees, earnings per share and number of shares outstanding.)
Key figures are translated into EUR as supplementary information - the translation is based on average exchange rate
for income statement and exchange rate at the balance sheet date for balance sheet items.
									% change
	2005			2004					Q2 2004 -
	Q2	Q1		Q4	Q3	Q2	Q1		Q2 2005
Sales	1,113	975		1,068	997	962	875		16%
Gross profit	816	695		778	715	701	626		16%
Gross margin	73.3%	71.3%		72.8%	71.8%	72.9%	71.5%
Sales and distribution costs	305	287		318	274	268	253		14%
Percent of sales	27.4%	29.5%		29.8%	27.5%	27.8%	28.9%
Research and development costs	160	149		167	146	132	140		22%
Percent of sales	14.5%	15.2%		15.6%	14.7%	13.7%	16.0%
Administrative expenses	63	65		72	67	58	64		9%
Percent of sales	5.7%	6.7%		6.7%	6.8%	6.0%	7.3%
Licence fees and other operating income (net)	27	9		28	8	10	31		185%
Operating profit	315	203		249	236	253	200		24%
Operating margin	28.3%	20.8%		23.4%	23.6%	26.3%	22.9%
Share of profit in associated R&D companies	(6)	32		(1)	-	(5)	(9)		8%
Financial income	32	15		65	17	14	24		129%
Financial expenses	26	10		25	7	6	3		339%
Profit before taxation	315	240		288	246	256	212		23%
Net profit	226	166		197	165	171	141		32%
Depreciation, amortisation and impairment losses	57	55		74	77	52	51		9%
Capital expenditure	99	97		147	117	86	53		14%
Cash flow from operating activities	283	180		283	326	230	181		23%
Free cash flow	179	82		121	207	128	119		39%
Equity	3,438	3,454		3,563	3,434	3,340	3,216		3%
Total assets	5,064	4,899		5,033	4,782	4,608	4,545		10%
Equity ratio	67.9%	70.5%		70.8%	71.8%	72.5%	70.8%
Full-time employees at the end of the period	21,246	20,942		20,285	20,001	19,631	19,179		8%
Diluted earnings per share (in EUR)*	0.68	0.50		0.58	0.49	0.50	0.42		36%
Average number of shares outstanding (million)*
- used for diluted earnings per share	330.8	333.2		334.7	338.2	339.8	339.8		-3%
Sales by business segments:
Insulin analogues	227	195		179	169	139	119		63%
Human insulin and insulin-related sales	504	450		531	483	489	430		3%
Oral antidiabetic products (OAD)	52	51		54	60	51	56		3%
Diabetes care total	783	696		764	712	679	605		15%
NovoSeven®	168	146		157	147	145	137		15%
Growth hormone therapy	95	80		87	75	75	74		26%
Hormone replacement therapy	55	44		49	53	52	46		5%
Other products	12	9		11	10	11	13		9%
Biopharmaceuticals total	330	279		304	285	283	270		16%
Sales by geographic segments:
Europe	457	404		452	411	418	387		10%
North America	307	281		244	282	247	232		24%
International Operations	187	152		210	157	152	132		23%
Japan & Oceania	162	138		162	147	145	124		10%
Segment operating profit:
Diabetes care	166	101		141	101	125	91		32%
Biopharmaceuticals	149	102		108	135	128	109		17%
*) For Q2 2005 diluted earnings per share/ADR of a nominal value of DKK 2, which include options on Novo Nordisk's treasury
shares with an exercise price below current market value, have been based on an average number of shares of 330,804,579.

 

Appendix 3:

Income statement
	H1	H1		Q2	Q2
DKK million	2005	2004		2005	2004
Sales	15,541	13,679		8,283	7,164
Cost of goods sold	4,295	3,799		2,210	1,945
Gross profit	11,246	9,880		6,073	5,219
Sales and distribution costs	4,406	3,877		2,267	1,991
Research and development costs	2,303	2,023		1,197	983
Administrative expenses	953	908		470	431
Licence fees and other operating income (net)	269	303		202	71
Operating profit	3,853	3,375		2,341	1,885
Share of profit/(loss) in associated companies	195	(109)		(43)	(40)
Financial income	352	282		238	104
Financial expenses	269	66		193	44
Profit before taxation	4,131	3,482		2,343	1,905
Income taxes *)	1,215	1,157		659	633
NET PROFIT	2,916	2,325		1,684	1,272
Basic earnings per share (DKK)	8.81	6.87		5.11	3.76
Diluted earnings per share diluted (DKK)	8.78	6.84		5.09	3.74
Segment sales:
Diabetes care	11,006	9,564		5,836	5,056
Biopharmaceuticals	4,535	4,115		2,447	2,108
Segment operating profit:
Diabetes care	1,985	1,611		1,235	936
Operating margin	18.0%	16.8%		21.2%	18.5%
Biopharmaceuticals	1,868	1,764		1,106	949
Operating margin	41.2%	42.9%		45.2%	45.0%
*)  The effective tax rate for the first half of 2005 of 29.4% is based on the expected effective tax rate for the full year of 2005 including the effect of the reduction in the Danish corporate income tax and including the tax-exempt status of the capital gain on the sale of shares in Ferrosan A/S, but excluding the effect of the tax-exempt status of the accounting gain related to ZymoGenetics' public offering of new shares, which was concluded in August 2005.   Appendix 4: Balance sheet DKK million 30 Jun 2005 31 Dec 2004 ASSETS Intangible assets              411              314 Property, plant and equipment          18,799          17,559 Investments in associated companies              770              883 Deferred tax assets              810              769 Other financial assets              189              159 TOTAL LONG-TERM ASSETS           20,979           19,684 Inventories           7,670           7,163 Trade receivables           4,681           4,062 Tax receivables                22              710 Other receivables           1,404           1,855 Marketable securities              524              526 Cash at bank and in hand           2,451           3,433 TOTAL CURRENT ASSETS           16,752           17,749 TOTAL ASSETS           37,731           37,433 EQUITY AND LIABILITIES Share capital              709              709 Treasury shares              (56)              (45) Share premium account                 -           2,565 Retained earnings          25,099          22,671 Other comprehensive income             (132)              604 TOTAL EQUITY           25,620           26,504 Long-term debt           1,272           1,188 Deferred tax liabilities           1,328           1,853 Provision for pensions              300              250 Other provisions              267              358 Total long-term liabilities             3,167             3,649 Short-term debt              600              507 Trade payables           1,191           1,061 Tax payables              709              631 Other liabilities           4,678           3,721 Other provisions           1,766           1,360 Total current liabilities             8,944             7,280 TOTAL LIABILITIES           12,111           10,929 TOTAL EQUITY AND LIABILITIES           37,731           37,433

Appendix 5:

Statement of changes in equity
						Other comprehensive income
DKK million	Share capital	Treasury shares	Share premium account	Retained earnings	Exchange rate adjust-ments	Deferred gain/loss on cash flow hedges	Other adjust-ments	Total
H1 2005
Balance at the beginning of the year	709	(45)	2,565	22,671	(40)	461	183	26,504
Exchange rate adjustment of investments in subsidiaries					98			98
Deferred (gain)/loss on cash flow hedges at the beginning of the year recognised in the Income statement for the period						(461)		(461)
Deferred gain/(loss) on cash flow hedges at the end of the period						(386)		(386)
Other adjustments				96			13	109
Net income recognised directly in equity	-	-	-	96	98	(847)	13	(640)
Net profit for the period				2,916				2,916
Total income for the period	-	-	-	3,012	98	(847)	13	2,276
Cost of share-based payment				40				40
Purchase of treasury shares		(11)		(1,636)				(1,647)
Sale of treasury shares		-		41				41
Transfer of share premium account to retained earnings *)			(2,565)	2,565				-
Dividends				(1,594)				(1,594)
Balance at the end of the period	709	(56)	-	25,099	58	(386)	196	25,620
*) In accordance with changes in the Danish Companies Act the share premium account is transferred to retained earnings.
H1 2004
Balance at the beginning of the year	709	(33)	2,565	20,925	(79)	513	176	24,776
Exchange rate adjustment of investments in subsidiaries					(18)			(18)
Deferred (gain)/loss on cash flow hedges at the beginning of the year recognised in the Income statement for the period						(513)		(513)
Deferred gain/(loss) on cash flow hedges at the end of the period						77		77
Other adjustments							(3)	(3)
Net income recognised directly in equity	-	-	-	-	(18)	(436)	(3)	(457)
Net profit for the period				2,325				2,325
Total income for the period	-	-	-	2,325	(18)	(436)	(3)	1,868
Cost of share-based payment				52				52
Purchase of treasury shares		(3)		(425)				(428)
Sale of treasury shares		-		47				47
Dividends				(1,488)				(1,488)
Balance at the end of the period	709	(36)	2,565	21,436	(97)	77	173	24,827

 

Appendix 6:

Condensed cash flow statement
DKK million	H1 2005	H1 2004
Net profit	2,916	2,325
Net reversals with no effect on cash flow	2,145	2,540
Income taxes paid and net interest received	(926)	(1,311)
Cash flow before change in working capital	4,135	3,554
Net change in working capital	(687)	(494)
Cash flow from operating activities	3,448	3,060
Net investments in intangible assets and long-term financial assets	(44)	(184)
Capital expenditure for property, plant and equipment	(1,458)	(1,034)
Net change in marketable securities (>3 months)	-	1,304
Total cash flow from investing activities	(1,502)	86
Cash flow from financing activities	(3,219)	(2,202)
NET CASH FLOW	(1,273)	944
Unrealised gain/(loss) on exchange rates in cash and cash equivalents	161	(16)
Net change in cash and cash equivalents	(1,112)	928
Cash and cash equivalents at the beginning of the year	2,963	841
Cash and cash equivalents at the end of the period	1,851	1,769
Bonds with original term to maturity exceeding three months	507	506
Undrawn committed credit facilities	6,706	6,689
FINANCIAL RESOURCES AT THE END OF THE PERIOD	9,064	8,964
FREE CASH FLOW*	1,946	1,842
*) Cash flow from operating activities + Cash flow from investing activities - Net change in marketable securities (>3 months)

 

Stock Exchange Announcement No 20 / 2005