novo-2016-investments-11.html
Novo Annual Review 2016
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for the year. therefore, a negative return of
dkk
-1.5 billion was realized in 2016 versus a return of
dkk
8.6 billion in 2015. however, and more importantly, the returns from this business area remain strong, with the five and 10 year irr standing at a highly attractive 21% and 16%, respectively. despite recent volatility, today?s market value of
investments
such as chr. hansen is substantially higher than
novo
a/s? entry cost, resulting in this strong irr performance. financial
investments
contributed with a very satisfactory result of
dkk
2.8 billion in 2016, thereby delivering a return in line with the average returns for the past five and 10 years of 11% and 8%, respectively. the favourable development in the shareholding in flsmidth a/s contributed to the good performance in 2016. a 27% decrease in total assets but the highest cash inflow ever at the end of the year,
novo
a/s? assets totalled
dkk
275.7 billion, of which
investments
outside the
novo
group companies amounted to
dkk
76.5 billion. in 2016, the value of
novo
a/s? holdings in
novo
nordisk and
novo
zymes decreased by 35% to
dkk
198.0 billion, whereas the value of
novo
a/s? holding in nnit increased by
dkk
0.09 billion.
novo
received dividends of
dkk
6.9 billion ? an increase of 84% over 2015, helped by the interim dividend pay-out from
novo
nordisk in august 2016. as in 2015, we decided not to participate in
novo
nordisk?s share buy- back programme in 2016. at the end of the year, we held 537,436,000 a shares and 163,814,000 b shares, equivalent to 27.5% of the share capital and 75.0% of the votes in
novo
nordisk. as announced in january 2014,
novo
a/s has informed
novo
nordisk that it intends to consider its participation in the
novo
nordisk share repurchase programme on a case- by-case basis. for 2017,
novo
a/s has informed
novo
nordisk that it does not plan to participate in the share repurchase programme.
novo
a/s currently owns 27.5% of
novo
nordisk, with 25.5% being the targeted minimum and historical ownership level, and the additional 2.0%-point of the current ownership being part of the liquidity reserve of
novo
a/s.
novo
a/s has the ambition to build on its position as a world-leading life science investor. this will primarily be pursued via larger
investments
in life science companies. to fund this strategy,
novo
a/s might in the future consider reducing its holding of
novo
nordisk b-shares. over time, this could bring the current ownership towards the minimum targeted and historical ownership level of 25.5%. as part of
novo
zymes? share buy-back programme, we sold 765,000 b shares, yielding
dkk
0.2 billion. at the end of the year, we held 53,743,600 a shares and 25,306,400 b shares, equivalent to 25.5% of the share capital and 70.9% of the votes in
novo
zymes. the value of the investment portfolio increased during 2016 to
dkk
76.5 billion, up from
dkk
69.8 billion in 2015. this was primarily due to the allocation of significant
investments
in synlab, a market leader in laboratory services, and in ert, a leading clinical trial cloud platform provider, as well as increased activity within venture
investments
in the us. in 2016, eight of
novo
a/s? venture portfolio companies undertook a public listing. our cash inflow from the
novo
group in 2016 amounted to
dkk
7.1 billion, which is the highest inflow
novo
a/s has received since its establishment.
novo
a/s? cash inflows primarily comprised dividends from
novo
nordisk and
novo
zymes and participation in
novo
zymes? share buy-back programme. in 2016,
novo
a/s paid
dkk
3.0 billion in dividends to the
novo
nordisk foundation, which, in accordance with its statutes, provides grants for scientific, humanitarian and social purposes. since 2010, the foundation has issued more than
dkk
10.0 billion in grants, primarily for public research, education, innovation, treatment, social and humanitarian purposes in denmark and scandinavia. investing in life science for future growth as part of life science
investments
, we provide both seed and venture capital to development-stage companies and take significant ownership positions in well-established companies. it is
novo
a/s? vision to build on its position as a world leading life science investor, with a focus on creating long-term value.
novo
divides its life science
investments
into three distinct areas: large
investments
focuses on established companies;
novo
ventures focuses on venture
investments
primarily in the us and europe; and
novo
seeds focuses on early start ups primarily in the nordic region. by the end of 2016,
novo
had
dkk
37.7 billion allocated to life science
investments
.
dkk
billion 2016 2015 income from the
novo
group 7.1 4.3 return from life science
investments
-1.5 8.6 return from financial
investments
2.8 2.9 income and investment return 8.4 15.8 note: income from the
novo
group include dividend and income related to sales of shares in
novo
group companies, whereas the returns from life science
investments
and financial
investments
represent realised and unrealised gains and losses during 2016.
dkk
billion 2016 2015
novo
group 199.2 308.0 life science
investments
37.7 31.9 financial
investments
38.8 37.9 total holdings and investment assets 275.7 377.8 note: shares in
novo
nordisk and
novo
zymes in this table reflect the value of all a and b shares based on the market value per b share at closing on 31 december 2016. 12
novo
a/s 2016
investments-2016-companies-13.html
