Frequently Asked Questions

Basic earnings per share (EPS) is calculated by dividing net income attributable to shareholders of Novartis AG by the weighted average number of shares outstanding in a reporting period. This calculation excludes the average number of issued shares purchased by the Group and held as treasury shares.

For diluted EPS, the weighted average number of shares outstanding is adjusted to assume the vesting of all restricted shares, restricted share units, and the conversion of all potentially dilutive shares arising from options on Novartis shares that have been issued.

No options were excluded from the calculation of diluted EPS in 2018, 2017 or 2016, as all options were dilutive in all years.

Per-share information

Learn more about share ownership

The Company’s Articles of Incorporation state that no person or entity shall be registered with the right to vote for more than 2% of the share capital, as set forth in the commercial register. In particular cases, the Board of Directors may allow exemptions from the limitation for registration in the Novartis Share Register.

According to the Novartis Share Register, shareholders owning 2% or more of the Company’s capital at December 31, 2018 and being entitled to voting rights on all of their shares, excluding treasury shares held by Novartis AG or its fully owned subsidiaries, are as follows:

We transact our business in many currencies other than the US dollar, our reporting currency.

The following provides an overview of net sales and operating expenses for our operations based on IFRS values for 2018, 2017 and 2016, for currencies most important to the Group:

Operating expenses in the above table include cost of goods sold, selling, general and administration, research and development, other income and other expense.

We prepare our consolidated financial statements in US dollars. As a result, fluctuations in the exchange rates between the US dollar and other currencies can have a significant effect on both the Group’s results of operations as well as the reported value of our assets, liabilities and cash flows. This in turn may significantly affect reported earnings (both positively and negatively) and the comparability of period-to-period results of operations.

For purposes of our consolidated balance sheets, we translate assets and liabilities denominated in other currencies into US dollars at the prevailing market exchange rates as of the relevant balance sheet date. For purposes of the Group’s consolidated income and cash flow statements, revenue, expense and cash flow items in local currencies are translated into US dollars at average exchange rates prevailing during the relevant period. As a result, even if the amounts or values of these items remain unchanged in the respective local currency, changes in exchange rates have an impact on the amounts or values of these items in our consolidated financial statements.

Because our expenditures in Swiss francs are significantly higher than our revenues in Swiss francs, volatility in the value of the Swiss franc can have a significant impact on the reported value of our earnings, assets and liabilities, and the timing and extent of such volatility can be difficult to predict. In addition, there is a risk that certain countries could take steps that could significantly impact the value of their currencies.

You will find detailed information about the 2018 Annual Report in our Annual Reporting Suite section.

The Annual General Meeting of shareholders held on February 28th, 2019 approved a gross divi-dend (before taxes and duties) of CHF 2.85 per dividend-bearing share of CHF 0.50 nominal value. The last trading day with entitlement to receive the dividend is March 1, 2019.

As from March 4, 2019 the shares will be traded ex-dividend. This dividend will be paid as of March 6, 2019 (the Swiss payment date).

As Novartis’s ADR depositary bank and US transfer agent, J.P. Morgan has a fiduciary obligation (as per the rules set by the Office of the Comptroller of the Currency – OCC) to make timely dividend payments to ADR holders and has determined that the existing process required a change.

On the Swiss payment date only 65% of the dividend is received. This amount will be converted into U.S. dollars and paid on the ADR payment date March 13, 2019.

The Swiss Tax Authorities require that a tax reclaim be completed prior to each payment for any amounts due above and beyond the non-treaty amount. Investors must certify and elect their entitlement and provide necessary disclosure documentation as required by the treaty between the US and Switzerland based upon their tax status.

No, the funds will be converted and paid to the holders.