Key performance indicators consolidated highlights

Financial

Key figures1
(in USD millions, unless indicated otherwise)

 

 

 

% Change

 

2019

2018

USD

Constant
currencies

1

This Novartis Annual Review 2019 includes non-IFRS financial measures such as core results, constant currencies and free cash flow. Novartis believes that investor understanding of the Group’s performance is enhanced by disclosing these non-IFRS measures. A definition of non-IFRS measures used by Novartis, and further details, including reconciliation tables, can be found in “Item 5. Operating and Financial Review and Prospects” of the Novartis Annual Report 2019.

2

2019 weighted average number of shares outstanding: 2 291 million (2018: 2 319 million)

Net sales to third parties from continuing operations

47 445

44 751

6

9

Operating income from continuing operations

9 086

8 403

8

14

Return on net sales (%)

19.2

18.8

 

 

Net income from continuing operations

7 147

12 800

–44

–41

Net income from discontinued operations

4 590

–186

nm

nm

Net income

11 737

12 614

–7

–3

Basic earnings per share2 (USD) from continuing operations

3.12

5.52

–43

–40

Basic earnings per share2 (USD) from discontinued operations

2.00

–0.08

nm

nm

Basic earnings per share2 (USD)

5.12

5.44

–6

–2

Core operating income from continuing operations

14 112

12 557

12

17

Core return on net sales (%)

29.7

28.1

 

 

Core net income from continuing operations

12 104

10 920

11

15

Core earnings per share2 from continuing operations (USD)

5.28

4.71

12

17

Free cash flow from continuing operations

12 937

11 256

15

 

Share information

 

2019

2018

% Change

 

3

The share price and ADR price at year-end 2019 exclude the business of Alcon, which was spun off in April 2019 into a separately traded standalone company.

4

Dividend 2019: proposal to shareholders for approval at the Annual General Meeting on February 28, 2020

Share price at year-end (CHF)3

91.90

84.04

9

 

ADR price at year-end (USD)3

94.69

85.81

10

 

Dividend4 (CHF)

2.95

2.85

4

 

Innovation

Key figures1

 

2019

2018

1

Includes Innovative Medicines and Sandoz biosimilars only

2

Includes programs entering confirmatory development, based on internal R&D activities. First patient, first visit (FPFV) has occurred in post-proof-of-concept stage after NIBR or external entry.

3

Includes projects with FPFV in a Phase III study but not yet filed in the US, EU, Japan or China

4

Number of breakthrough therapy designations granted by the US Food and Drug Administration for therapies under development by Novartis

5

Includes small molecules, biologics; new fixed-dose combinations of existing APIs; and new target indications, defined as new disease or new line of treatment (e.g., first line vs. second line)

6

Includes NMEs such as small molecules, biologics; in the EU, new fixed-dose combinations of existing APIs

Projects entering development pipeline2

8

8

Ongoing Phase III programs3

38

35

US FDA breakthrough therapy designations4

3

4

Major submissions (US, EU, JP, China)5

33

27

Major approvals (US, EU, JP, China)5

24

30

New molecular entity (NME) approvals6

5

3

Social

Access7

 

2019

2018

7

Data represent continuing operations.

8

Novartis Social Business, local brands, patient assistance programs, donations

9

Our patient reach has steadily declined over the past five years, due to the increasing availability of WHO prequalified generic ACTs, eligible for international donor-funded procurement. In addition, to harmonize the patient reach calculation methodology across Novartis, the malaria patient reach calculation was revised. We no longer consider a time lag between treatment shipment and patient reached. The calculation for malaria is now based on the treatments shipped in the respective calendar year.

10

Programs run by Novartis Social Business

Total patients reached (millions)

799

765

Patients reached through access-to-healthcare8 programs (millions)

169

25

People reached through training and health education programs (millions)10

10

8

People7

 

2019

2018

7

Data represent continuing operations.

11

Headcount reflects the total number of associates in our payroll systems. Full-time equivalent adjusts headcount for associates working less than 100%. All data as of December 31

12

Data represent continuing and discontinued operations.

13

Management defined by Global Job Level Architecture and Novartis Top Leaders

14

Novartis Top Leaders comprise the approximately 350 most senior managers at Novartis, including the Executive Committee of Novartis.

15

Decrease in number of misconduct cases reported is due to change in methodology: As of January 1, 2019, we only report on central matters (higher-risk cases). A central matter applies to a senior leader or manager, potentially disruptive reputational impact, sexual harassment, discrimination, retaliation and financial significance.

16

The number of misconduct cases reported may change, as matters may be reassessed in the course of the case lifecycle. The number of substantiated allegations may change due to the fact that investigation reports with assessments are received on an ongoing basis, which potentially leads to a difference in numbers at a later stage. A case can have more than one allegation and therefore the number of allegations is higher than the actual number of cases.

Full-time equivalent positions / headcount11

103 914/108 775

125 16112/129 92412

Turnover: % voluntary / % overall

7.0/14.0

7.112/11.512

Women in management: % of management13 / % of Novartis Top Leaders14 / % of Board of Directors

44/31/25

41/2712/2312

Misconduct cases (central matters)15 reported / allegations substantiated16

205/113

289/356

Health, safety and environment7,17

 

2019

2018

7

Data represent continuing operations.

17

The 2019 environmental sustainability data published in this report are actual data for the period from January through September, and best estimates for the period from October through December, which will be updated with actual data in the first quarter of 2020. Significant deviations will be reported on our website and restated in next year’s end-of-year reports.

18

Data include Novartis associates and third-party personnel managed by Novartis associates.

19

Scope 1: combustion and process, and vehicles; Scope 2: purchased energy

Lost-time injury and illness rate (per 200 000 hours worked)18

0.18

0.16

Greenhouse gas emissions, total Scope 1 and Scope 2 (1 000 t)19

895.1

931.2