Where can I learn more about Novartis financial results？

OurFinancial datasection provides links to：

上压式通风机和移动式通风机Event calendar。

How do you calculate your earning per share？

Basic earnings per share（EPS）is calculated by dividing net income attribuble 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 Company 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 in 2022and 2021the conversion of all potentially dilutive shares arising from options on Novartis shares that have been issued。At December312023，there were no options on Novartis shares issued or outstanding。

Nooptions were excluded from the calculation of diluted EPS in 2022or2021，as all options were dilutive in both years。

 202320222021
北美洲联盟（USD millions）   
-内容操作85686 04922908
-禁用操作6282906113
北美洲联盟（USD millions）148506 95524021

Number of shares（in millions）		   
基础施工人员的基础施工计划20772 1812243
预应力板，预应力板和预应力板1516第十七节：
加强的受热板，加强的受热板，加强的受热板209221972260

基本earnings per share（USD）		   
-内容操作4.132.7710.22
-禁用操作3.020.420.49
总基础设施（USD）7.153.1910.71

Diluted earnings per share（USD）		   
-内容操作4.102.7610.14
-禁用操作3.000.410.49
总排水弯管（USD）7.103.1710.63


Are there any limitations on voting rights for registered shareholders？

Novartis AG Articles of Incorporation state that no person or entity shall be registered with the right to vote for more than2%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 who owned2%or more of the Company’s capital at December312023，and were entitled to voting rights on all of their shares，excluding treasury shares held by Novartis AG or its fully owned subsidiaries

Shareholders registered for their own account：表面面积系数
Dec312023		表面面积系数
Dec312022
Emasan AG，Basel1个3.93.7
UBS Fund Management AG，Basel2.72.3
Credit Suisse Funds AG，Zurich2.22.1
  1. According to adisclosure notification filed with Novartis AG，the beneficial owner of the shares registered for Emasan AG is Sandoz–Fondation de Famille，Liechtenstein。


Novartis？

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

20232022and2021，for currencies most important to the Company:

Currency 2023
%		2022
%		2021
%
US dollar（USD）网络安全措施434138
 操作范围1个383838
Euro（EUR）网络安全措施第二十四节：第二十四节：27
 操作范围1个192122
Swiss franc（CHF）网络安全措施1个1个1个
 操作范围1个222220
中国有线电视新闻网网络安全措施777
 操作范围1个4个4个4个
Japanese yen（JPY）网络安全措施4个55
 操作范围1个223
Canadian dollar（CAD）网络安全措施222
 操作范围1个1个1个1个
GBP网络安全措施223
 操作范围1个522
Russian ruble（RUB）网络安全措施1个21个
 操作范围1个01个1个
BRL网络安全措施221个
 操作范围1个1个1个1个
Australian dollar（AUD）网络安全措施1个1个1个
 操作范围1个01个1个
Other currencies网络安全措施131314
 操作范围1个8个77

1.Operating expenses 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 Company’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 USdollars at the prevailing market exchange rates as of the relevant balance sheet date。For purposes of the Company’s consolidated income and cash flow statements，revenue，expense and cash flow items in local currencies are translated into USdollars 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 consolided financial statements。

Because our expenditure in Swiss francs is significantly high er than our revenue 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 redict。

Top10 questions from shareholders and our responses

上次更新：April2024

What is your position on over-boarding at Board level？

  • We review the external mandates of our Board members regularly and ensure that they are compliant with the Novartis articles of association，which allow for up to fouraditional mandates in other listed companies（whereas chair positions count as two mandates）。
  • Any potential mandate in listed and non-listed companies requires pre-approval，where Novartis assesses the overall mandates of a Board member as well as potential conflicts of interest。
  • We pay close attention to external commitments and time required for travel and the attendance record of our Board members。All Board members had100%attendance rate in 2023（for more information please see p.136of Annual Report）。

Board Members？

  • The Board has ultimate responsibility forour ESG strategy and has delegated certain duties and responsibilities related to ESG to some of its committees。ast importantly，the Governance，Sustainability and Nomination Committee（GSNC）oversees the ESG strategy and governance，and the Audit and Compliance Committee（ACC）is responsible for internal controls and reviews non-financial performance indicators。动力箱支座集成报告（page68）。
  • Several of our Board members have direct ESG experience，as noted on our website and in our Annual Report（as of 2023:61%）。
  • We have an active program of Board education on key topics including ESG。In2023，the full Board attended an education session，jointly organized by the ACC and GSNC，on the evolving regulatory landscape in ESG。We will continue to invest in the education of our Board members through additional sessions in 2024and beyond，addressing material topics such as“Impact of Climate Change on Health and Business”。These sessions will be supported by key experts in the respective fields。

What is your policy on Board gender diversity？

  • The Governance，Sustainability and Nomination Committee（GSNC）assesses the Board’s competencies and skills annually to ensure that an appropriate balance of skills，expertise，experience and diversity is represented。Diversity is also a consideration when discussing existing Board composition and future candidates。
  • We have pledged to continuously advance our efforts to promote gender parity in the composition of our Board of Directors（at50%within a range of+/-10%）。
  • While we are pleased with the support of the re-election of all members of our Board of Directors at our recent AGM，we acknowledge feedback from investors regarding providing more clarity on our future direction and commitment to gender parity。

How do you protect IP using AI？

  • We have a comprehensive approach to protecting IP that combines legal，technical，and operational measures。To protect our proprietary information and IP shared with third parties，we ensure that transactional requirements are in place。For example，these requirements include confidentiality obligations，appropriate data ownership provisions，and restrictions on use and data access。
  • We continue to rely on patents，trademarks，copyright，and other intellectual property rights to protect our innovative and creative works to support our business model and objectives。

Can you share Novartis approach to ethical clinical trials？

  • We are seeking input and preferences from the patient community early in the drug development process and continuously improving how we share information with patients before，during and after clinical trials。Novartis commitment to patients and caregivers can be foundhere，here。
  • We are also aiming to improve access to and participation in clinical trials by using insights from the patient community in trial design，exploring technology-enabled solutions，and implementing strategies to ensure that our trials reflect the diversity of patients。
  • We remain committed to环形变压器to advance public health。After completion，we publish clinical trials results onclinicaltrials.govand，andEudraCT，including requesting that allInvestigator Initiated Trials（IIT）supported by Novartis make results public。
  • After successful completion of clinical programs，we register our new medicines in every country where patients have participated in trials。Where a medicine is registered and not commercially available，we commit to providing it，as permitted by local legislation，to patients who participated in trials to ensure their treatment is not interrupted。

Why did the number of Speak Up cases increase in 2023 vs.2022？

  • Speak Up cases either come directly from reporters toour“SpeakUp office”or through internal controls or detection mechanisms（e.g.Finance/Compliance/IT teams conducting the monitoring）。
  • The increase was driven by the latter–improvement in detection mechanism。In mid-2022，our IT function enhanced its protective measures and monitoring systems。数据security cases are classified as high risk，and also have a high substantiation rate due to the automated detection measures。
  • The number of substantiated cases indicates the detection measures were effective at identifying security breaches。In addition，regular mandatory training on information management，data privacy and data use is in place to raise awareness。We also believe that the increase in no.of cases is partly a result of our ongoing campaign to encourage reporting。

ATMI？Can you remind us why your ATMI ranking declined in 2022 vs.2020？

  • We acknowledge that third-party ESG ratings are important because they provide an independent assessment of companies，which can be useful for investors。We are pleased to have had a leading ranking in ATMI over the last decade。We believe that this is aby-product of our consistent efforts towards improving access to medicines in low-and middle-income countries（LMICs）。
  • Our2022 ATMI rating declined from second to fourth due to the negative impact of alegacy Alcon issue that occurred between2011and2016（Alcon was spun offin2019）。We recently submitted our responses for the 2024 ATMI cycle to the Access to Medicines Foundation（ATMF），with results expected to be published in Q4 2024。Due to the approach to scoring by the ATMF and new indicators/requirements，we cannot predict what our2024rating will be。
  • Novartis remains dedicated to providing access to patients in LMICs，as evidenced byour reaching284million patients globally with our innovative medicines（out of which33.2million are through access approaches in LMICs）。

Can you provide an update on your SBTi net zero targets？

  • We have a near-term target approved by the Science Based Targets initiative（SBTi）。We have committed to reach carbon neutrality by2030across Scopes1,2and3and to achievenet-zero across our value chain by2040。Our2025target is to become carbon neutral in our own operations from energy（Scopes1and2）。
  • We are in the process of updating our near-term target for 2030 in accordance with the latest SBTi Corporate Net-Zero Standard。We have submitted the 2030 near-term and 2040net-zero targets to SBTi for validation。

Can you explain why the percentage of sites eliminating PVC decreased from 90%in 2022 to 78%in 2023？

  • The decrease in the percentage of sites eliminating PVC was primarily due to the expansion of our analysis scope in 2023 to include additional sites。
  • Previously，our focus was solely on packaging sites utilizing PVCs in secondary and tertiary packaging，i.e.where actions were required for elimination to deliver our2025target。However，beginning in2023，we broadended our scope to encompass all product packaging sites to prevent any potential reintroduction of PVC。We also expanded the scope to include new sites。
  • We remain on track to eliminate PVC in secondary and tertiary packaging by2025。

水上quality between2022and2023？

  • 88%of our high-risk suppliers met our water quality standards in 2023，compared with26%in 2022。This was driven by two main factors：
    • We began engaging with our suppliers on water quality topics in 2021，investing a significant amount of time in onboarding and engaging them on this topic during 2021and 2022。This effort involved capability-building and providing support to meet the required standards。This has motivated our suppliers to take concrete actions to meet water quality standards and we will continue this engagement in coming years。
    • We continue to look for opportunities to reduce our supply chain complexity。As part of this strategic initiative，we consolidate our supplier base by reducing the number of suppliers every year。In2023，one of the impacts of this strategic project was the exit of several high-risk suppliers。

Novartis and Sandoz shares following the spin-off of Sandoz from Novartis？

Information about allocation of tax basis for U.S.holders may be found in theForm8937:Basis of Securities（PDF0.1MB）.With regard to non-U.S.holders，please note that the allocation of tax basis for Novartis and Sandoz shares following the spin-off depend on the applicable local tax provisions and each shareholder’s individual circumstances。Accordingly，all shareholders and ADR holders are asked to consult their own tax advisor regarding the tax basis allocation calculations。

何为Novartis shares traded？

Novartis shares are listed and traded on the SIX Swiss Exchange（Valor No.00120526，ISIN CH001205267，symbol:NOVN）as well as on the NYSE in the form of American Depositary Receipts（ADR）（Valor No.567514，ISIN US66987V1098，symbol:NVS）。

Novartis？

SharesSIX（Reuters/Bloomberg）NOVN。S/NOVN SW
ADRsNYSE（Reuters/Bloomberg）NVS/NVS US


What is an ADR/ADS？

ADR stands for American Depositary Receipt。ADS stands for American Depositary Share。An ADR is a receipt for a number of shares of a foreign-based corporation held by a US depositary bank，entitling the ADR holder to all dividends and capital gains。

What is the number of outstanding shares in Novartis？

Key Novartis share data

 202320222021
Issued shares2 277 477 75224037215222434420920
Treasury shares1个233瀳443瀳766284Ĝ112渣199潀480焬972
出站shares at December312 044 \u003c033 \u003; 9862瀹119瀹609瀹0572瀹234瀹939瀹948
表面表面表面平整度2瀹076瀹794瀹1402 181炻180炻3412瀰242瀰601瀰173


1.Approximately94million treasury shares（2022:99million 2021:102million）are held in Novartis entities that restrict their availbility foruse。

What is the number of outstanding ADRs in Novartis？

在美国，在美国

 202320222021
Year-end ADR price（USD）100.9790.7287.47
空气出口定位1个189633 312225435680269 891 321


1.The depositary，JPMorgan Chase Bank，N.A.，holds one Novartis AG share for every ADR issued。

When is your dividend going to be paid？

The dividend payment date has been set for March112024。

Novartis shares为What is the dividend history for Novartis shares？

Shareholders approved the 27th consecutive dividend increase per share since the creation of Novartis in1996，with an increase of 3.1%to CHF3.30per share for 2023。

Learn more about dividend information

我不知道你是谁？

Information about allocation of tax basis for U.S.holders may be found in theForm8937:Basis of Securities（PDF0.1MB）.With regard to non-U.S.holders，please note that the allocation of tax basis for Novartis and Alcon shares following the spin-off depend on the applicable local tax provisions and each shareholder’s individual circumstances。Accordingly，all shareholders and ADR holders are asked to consult their own tax advisor regarding the tax basis allocation calculations。

What are the income tax implications to Canadian shareholders due to the Alcon spin-off？

Canada income tax guidelines and tax election letters related to the Alcon Spin-off for Canadian resident shareholders：

Canada Income Tax Alcon Spin-off FAQ-English（PDF0.1MB）

Canada Income Tax Alcon Spin-off FAQ-French（PDF0.1MB）

PDF0.1MB

ZIP0.1MB

 

What is the amount and timing of the next dividend payment？

The Novartis Board of Directors proposed a dividend of CHF3.30per share to the shareholders for approval at the Annual General Meeting held on March052024。This proposal was approved。The dividend will be paid as from March112024。The last trading day with entitlement to receive the dividend is March062024。As from March072024，the shares will be traded ex-dividend。

Is the dividend on the Novartis ordinary share and the Novartis ADR the same？

Yes，however，since ADR holders will receive their dividend in USdollars，the amount received will be impacted by currency exchange rates，as well asby a handling fee（historically，$0.01per share）associated with the ADR dividend。An estimate of the amount of the US dollar dividend for the ADR will be calculated on the day of the dividend announcement based on that day’s exchange rates。The actual exchange rate will be determined once all funds are received and exchanged by J.P.Morgan，the depositary bank。

Will the rate recently announced for the ADRs change between now and the ADR payment date？

Yes，the preliminary announcement only provides an estimated rate based on a current FX rate。The actual rate will be determined when the Swiss francs are converted to US dollars once all the funds are received by J.P.Morgan。

Will the dividend on the Novartis ADR be paid out on the Swiss payment date of March 112024？

No，the dividend on the Novartis ADR will be paid out only after a tax reclaim has been completed and once any such reclaimed funds have been received by J.P.Morgan from the Swiss Tax Authorities。Once the funds are received and converted into USdollars a payment will be made shortly thereafter to any ADR holders entitled thereto。The ADR Payment date is estimated to be on or around April252024。

Will the entire dividend amount be converted into USdollars after the Swiss tax reclaim has been completed？

No.On the Swiss payment date65%of the dividend is received by JP Morgan。This amount will be converted into USdollars at or after such time。

Why can’t J.P.Morgan receive all of the funds on the Swiss payment date？

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 USand Switzerland based upon their tax status。

什么是Swiss Tax Authorities？

Holders of ADRs entitled to receive the dividend are not able to elect until after the ADR record date which is just one（1）day prior to the Swiss payment date。Eligible holders of ADRs are given10 days to complete and submit their election。Once any reclaims are submitted to the Swiss Tax Authorities it takes approximately15days for such authorities to process the reclaim。

When will the final/definitive rate and ADR Payment Date de termined？ 

The final/definitive rate and ADR Payment Date will be determined once all of the funds that comprise the dividend are received by J.P Morgan and converted into USdollars。 

Will another announcement be made once the tax reclaim funds are received？

Yes，once all the funds have been received and converted，and the final/definitive rate is determined，anew announcement will be made by J.P Morgan。

How does the tax reclaim process work？

There is a process for banks and brokers within Depository Trust Company to elect their clients’correct tax status electronically and to provide documentation on behalf of their clients。J.P.Morgan elects on behalf of registered holders based upon their tax status。Please contact J.P.Morgan/Goal Group Recoveries，Inc.，New York at phone:+12122489120 or email:已保护for further questions。