Our Financial Data section provides links to:
- Annual Results and Quarterly Results, including a five-years results archive
- Novartis SEC Filings
- The Novartis Annual Reporting Suite
- Latest Top 20 Product Sales
- Fixed-Income Securities information
- And monthly information about the Expected Currency Impact on our results
Upcoming releases and more events are listed in our Event Calendar.
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.
|Net income attributable to shareholders of Novartis AG (USD millions)||12 611||7 703||6 712|
|Number of shares (in millions)
Weighted average number of shares outstanding used in basic earnings per share (in millions)
|2 319||2 346||2 378|
|Adjustment for vesting of restricted shares, restricted share units and dilutive shares from options||25||25||22|
|Weighted average number of shares in diluted earnings per share||2 344||2 371||2 400|
|Basic earnings per share (USD)||5.44||3.28||2.82|
|Diluted earnings per share (USD)||5.38||3.25||2.80|
Novartis uses the 12-month calendar year, ending December 31, as its fiscal year.
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:
|% holding of share capital
December 31, 2018
|% holding of share capital
December 31, 2017
|Emasan AG, Basel||3.5||3.4|
|Novartis Foundation for Employee Participation, Basel||2.3||2.5|
|UBS Fund Management (Switzerland) AG, Basel||2.2||2.0|
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:
|US dollar (USD)||Net sales||37||37||38|
|Euro (EUR)||Net sales||27||26||26|
|Swiss franc (CHF)||Net sales||2||2||2|
|Japanese yen (JPY)||Net sales||6||6||7|
|Chinese yuan (CNY)||Net sales||5||4||4|
|British pound (GBP)||Net sales||2||2||3|
|Canadian dollar (CAD)||Net sales||3||3||3|
|Brazilian real (BRL)||Net sales||2||2||2|
|Australian dollar (AUD)||Net sales||2||2||2|
|Russian ruble (RUB)||Net sales||2||2||1|
|Other currencies||Net sales||12||14||12|
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.
Our significant accounting policies are set out in “Item 18. Financial Statements—Note 1. Significant accounting policies,” which are prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).
Given the uncertainties inherent in our business activities, we must make certain estimates and assumptions that require difficult, subjective and complex judgments. Because of uncertainties inherent in such judgments, actual outcomes and results may differ from our assumptions and estimates, which could materially affect the Group’s consolidated financial statements. Application of the following accounting policies requires certain assumptions and estimates that have the potential for the most significant impact on our consolidated financial statements.