Key performance indicators consolidated highlights

Financial

Key figures1
(in USD millions, unless indicated otherwise)

 

 

 

% Change

 

2020

2019

USD

Constant
currencies

Net sales to third parties from continuing operations

48 659

47 445

3

3

Operating income from continuing operations

10 152

9 086

12

19

% of net sales to third parties

20.9

19.2

 

 

Net income from continuing operations

8 071

7 147

13

20

Net income from discontinued operations

 

4 590

nm

nm

Net income

8 071

11 737

–31

–27

Basic earnings per share2 (USD) from continuing operations

3.55

3.12

14

21

Basic earnings per share2 (USD) from discontinued operations

 

2.00

nm

nm

Basic earnings per share2 (USD)

3.55

5.12

–31

–26

Core operating income from continuing operations

15 416

14 112

9

13

% of net sales to third parties

31.7

29.7

 

 

Core net income from continuing operations

13 158

12 104

9

12

Core earnings per share2 from continuing operations (USD)

5.78

5.28

9

13

Free cash flow from continuing operations

11 691

12 937

–10

 

 

nm = not meaningful

1

This Novartis Annual Review 2020 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 2020.

2

2020 weighted average number of shares outstanding: 2 277 million (2019: 2 291 million)

Share information

 

2020

2019

% Change

 

Share price at year-end (CHF)3

83.65

91.90

–9

 

ADR price at year-end (USD)3

94.43

94.69

0

 

Dividend4 (CHF)

3.00

2.95

2

 

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 2020: proposal to shareholders for approval at the Annual General Meeting on March 2, 2021

Innovation

Key figures1

 

2020

2019

Projects entering development pipeline2

6

8

Ongoing Phase III programs3

44

38

US FDA breakthrough therapy designations4

2

3

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

13

33

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

26

24

New molecular entity (NME) approvals6

4

5

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

Social

Access

 

2020

2019

Total patients reached (millions)

769

799

Patients reached through access-to-healthcare7 activities (millions)

66

16

7

Novartis Global Health, local brands, patient assistance programs, donations

People

 

2020

2019

Full-time equivalent positions/headcount8

105 794/
110 738

103 914/
108 776

Turnover: % voluntary/% overall

5.2/10.1

7.0/14.0

Women in management: % of management9/% of Novartis Top Leaders10/% of Board of Directors

45/33/29

44/31/25

Misconduct cases (central matters)11 reported to the SpeakUp Office 12, 13

142

209

8

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

9

Management defined by Global Job Level Architecture and Novartis Top Leaders

10

Novartis Top Leaders comprise the approximately 300 most senior managers at Novartis, including the Executive Committee of Novartis.

11

A central matter applies to a senior leader or manager, potentially disruptive reputational impact, sexual harassment, discrimination, retaliation and significant financial impact.

12

The number of misconduct cases reported may change year-on-year as matters may be reassessed in the course of the case lifecycle.

13

The decrease in number of misconduct cases reported is due to a new risk assessment as of 2019.

Health, safety and environment14

 

2020

2019

Lost-time injury and illness rate (per 200 000 hours worked)15

0.13

0.18

Greenhouse gas emissions, total Scope 1 and Scope 2 (1 000 t)16

788.6

896.6

14

The 2020 environmental and resource data published in the Annual Report and in the Novartis in Society Report are actual data for the period from January through September, and best estimates for the period from October through December. This data will be updated with actual data in the first quarter of 2021. Significant deviations will be reported on our website and restated in next year’s Annual Report.

15

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

16

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