Back to Contents
`
`Consolidated financial statements Notes - Consolidated financial statements D
`
`1 Summary of significant accounting policies (continued)
`
`This impairment test is based upon management's projections
`and anticipated future cash flows. The most significant variables
`in determining cash flows are discount rates, terminal values, the
`number of years on which to base the cash flow projections, as
`well as the assumptions and estimates used to determine the
`cash inflows and outflows. Management determines the discount
`rates to be used based on the risk inherent in the related
`activity's current business model and industry comparisons.
`Terminal values are based on the expected life of products,
`forecasted lifecycle and forecasted cash flows over that period
`and the useful lives of the underlying assets.
`
`While the assumptions are believed to be appropriate, the
`amounts estimated could differ materially from what actually
`occurs in the future. These discounted cash flows are prepared
`at cash-generating-unit level. The cash- generating-units are the
`smallest group of identifiable assets that generates cash inflows
`from continuing use which are largely independent of the cash
`inflows from other assets or groups of assets.
`
`Financial assets
`The Group classifies its investments in the following categories:
`Financial assets at fair value through profit or loss (financial
`derivatives), Loans and receivables and Available-for-sale
`financial assets. The classification depends on the purpose for
`which the investments were acquired. Management determines
`the classification of its investments on initial recognition and re(cid:173)
`evaluates this designation at every reporting date to the extent
`that such a designation is permitted and required.
`
`Financial assets at fair value through profit or loss
`Financial derivatives used for hedging purposes are classified
`under financial assets at fair value through profit or loss even
`though financial derivatives used for hedging purposes, which do
`not qualify for hedge accounting, are regulated on equity. Assets
`in this category are classified as current assets.
`
`Loans and receivables
`Loans and receivables are non-derivative financial assets with
`fixed or determinable payments that are not quoted in an active
`market. Loans and receivables are included in Trade receivables
`and Other receivables in the Balance sheet.
`
`Trade receivables and other receivables are stated at amortised
`cost less allowances for doubtful trade receivables. The
`allowances are based on an individual assessment of each
`receivable.
`
`Available-for-sale financial assets
`
`Investments are derecognised when the rights to receive cash
`flows from the investments have expired or have been transferred
`and the Group has transferred substantially all risks and rewards
`of ownership.
`
`Inventories
`Raw materials and consumables are measured at cost assigned
`by using the first-in, first-out method.
`
`Work in progress and finished goods are stated at cost assigned
`by using the first-in, first-out method. Cost comprises direct
`production costs such as raw materials, consumables, energy
`and labour, and production overheads such as employee costs,
`depreciation, maintenance etc. The production overheads are
`measured based on a standard cost method which is reviewed
`regularly in order to ensure relevant measures of utilisation,
`production lead time etc.
`
`If the expected sales price less completion costs and costs to
`execute sales (net realisable value) is lower than the carrying
`amount, a write-down is recognised for the amount by which the
`carrying amount exceeds its net realisable value.
`
`Tax
`Income taxes in the Income statement include tax payable for
`the year with addition of the change in deferred tax for the year.
`
`Deferred income taxes arise from temporary differences between
`the accounting and tax balance sheets of the individual
`consolidated companies and from realisable tax-loss carry(cid:173)
`forwards, using the liability method. The tax value of tax-loss
`carry-forwards is included in deferred tax assets to the extent
`that the tax losses and other tax assets are expected to be
`utilised in the future taxable income. The deferred income taxes
`are measured according to current tax rules and at the tax rates
`expected to be in force on the elimination of the temporary
`differences.
`
`Unremitted earnings are retained by subsidiary companies for
`reinvestment. No provision is made for income taxes that would
`be payable upon the distribution of such earnings. If the earnings
`were remitted, an immaterial income tax charge would result,
`based on the tax statutes currently in effect.
`
`No deferred tax is calculated on differences associated with
`investments in subsidiaries, branches and associates as the
`differences by nature are permanent differences. However,
`deferred tax is calculated if the differences are tax deductible.
`
`Sanofi Exhibit 2136.124
`Mylan v. Sanofi
`IPR2018-01675
`
`

`

`Available-for-sale financial assets are non-derivatives that are
`either designated in this category or not classified in any of the
`other categories. They are included in Other financial assets
`unless management intends to dispose of the investment within
`12 months of the balance sheet date. Marketable securities
`under current assets are classified as available-for-sale financial
`assets.
`
`Recognition and measurement
`Purchases and sales of investments are recognised on the
`settlement date. Investments are initially recognised at fair value
`plus transaction costs for all financial assets not classified as
`fair value through profit or loss.
`
`Currency options, available-for-sale financial assets and financial
`assets at fair value through profit or loss are subsequently
`carried at fair value. Loans and receivables are carried at
`amortised cost using the effective interest method.
`
`Unrealised gains and losses arising from changes in the fair
`value of financial assets classified as available-for-sale are
`recognised in equity. When financial assets classified as
`available-for-sale are sold or impaired, the accumulated fair value
`adjustments are included in the Income statement as gains and
`losses from available-for-sale financial assets.
`
`The fair values of quoted investments are based on current bid
`prices. Financial assets for which no active market exists are
`carried at cost if no reliable valuation model can be applied
`(unlisted shares).
`
`The Group assesses at each balance sheet date whether there
`is objective evidence that a financial asset or a group of financial
`assets have been impaired. If any such evidence exists for
`available-for-sale financial assets, the cumulative loss is removed
`from equity and recognised in the Income statement. Impairment
`losses recognised in the Income statement on equity
`instruments are not reversed through the Income statement.
`
`Employee benefits
`Wages, salaries, social security contributions, paid annual leave
`and sick leave, bonuses and non-monetary benefits are accrued
`in the year in which the associated services are rendered by
`employees of the Group. Where the Group provides long-term
`employee benefits, the costs are accrued to match the rendering
`of the services by the employees concerned.
`
`Pensions
`The Group operates a number of defined contribution plans
`throughout the world. In a few countries the group still operates
`defined benefit plans. The costs for the year for defined benefit
`plans are determined using the projected unit credit method.
`This reflects services rendered by employees to the dates of
`valuation and is based on actuarial assumptions primarily
`regarding discount rates used in determining the present value of
`benefits, projected rates of remuneration growth and long-term
`expected rates of return for plan assets. Discount rates are
`based on the market yields of high-rated corporate bonds in the
`country concerned.
`
`Actuarial gains and losses are recognised as income or expense
`when the net cumulative unrecognised actuarial gains and
`losses for each individual plan at the end of the previous
`reporting period exceeded 10% of the higher of the defined
`benefit obligation and the fair value of plan assets at that date.
`These gains or losses are recognised over the expected average
`remaining working lives of the employees participating in the
`plans.
`
`Past service costs are allocated over the average period until the
`benefits become vested.
`
`Pension assets and liabilities in different defined benefit
`schemes are not offset unless the Group has a legally
`enforceable right to use the surplus in one plan to settle
`obligations in the other plan. Pension assets are only recognised
`to the extent that the Group is able to derive future economic
`benefits in the way of refunds from the plan or reductions of
`future contributions.
`
`Novo Nordisk Annual Report 2008
`
`59
`
`Sanofi Exhibit 2136.125
`Mylan v. Sanofi
`IPR2018-01675
`
`

`

`Back to Contents
`
`D Consolidated financial statements Notes - Consolidated financial statements
`
`1 Summary of significant accounting policies
`(continued)
`
`3 Critical accounting estimates and judgements
`
`The Group's contributions to the defined contribution plans are
`charged to the Income statement in the year to which they
`relate.
`
`Share-based compensation
`The Group operates equity-settled, share-based compensation
`plans. The fair value of the employee services received in
`exchange for the grant of the options or shares is recognised as
`an expense and allocated over the vesting period.
`
`The total amount to be expensed over the vesting period is
`determined by reference to the fair value of the options or shares
`granted, excluding the impact of any non-market vesting
`conditions. The fair value is fixed at grant date. Non-market
`vesting conditions are included in assumptions about the number
`of options or shares that are expected to become exercisable.
`At each balance sheet date, the Group revises its estimates of
`the number of options or shares that are expected to become
`exercisable. Novo Nordisk recognises the impact of the revision
`of the original estimates, if any, in the Income statement and a
`corresponding adjustment to equity over the remaining vesting
`period. Adjustments relating to prior years are included in the
`Income statement in the year of adjustment.
`
`Liabilities
`Generally, liabilities are stated at amortised cost unless
`specifically mentioned otherwise.
`
`Equity
`Treasury shares
`Treasury shares are deducted from the share capital at their
`nominal value of DKK 1 per share. Differences between this
`amount and the amount paid for acquiring, or received for
`disposing of, treasury shares are deducted from retained
`earnings.
`
`The preparation of financial statements in conformity with
`generally accepted accounting principles requires management
`to make estimates and assumptions that affect the reported
`amounts of assets and liabilities and disclosure of contingent
`assets and liabilities at the date(s) of the financial statements
`and the reported amounts of revenues and expenses during the
`reporting period(s). Management bases its estimates on
`historical experience and various other assumptions that are
`believed to be reasonable under the circumstances, the results
`of which form the basis for making judgements about the
`reported carrying amounts of assets and liabilities and the
`reported amounts of revenues and expenses that may not be
`readily apparent from other sources. Actual results could differ
`from those estimates. Novo Nordisk believes the following are
`the critical accounting estimates and judgements used in the
`preparation of its consolidated financial statements.
`
`Non-recurring costs related to discontinuation of all
`pulmonary diabetes projects
`Towards the end of 2007, Novo Nordisk conducted a detailed
`analysis of the future prospects for inhaled insulin and a review of
`the medical and commercial potential of the AERx® iDMS
`inhaled insulin system (AERx®).
`
`This analysis resulted in a non-recurring impairment cost
`regarding intangible assets and manufacturing activities related
`to the AERx® system and cost of discontinuing all clinical
`development in the amount of DKK 1,325 million, which were
`recorded and negatively impacted operating profit in 2007.
`
`In April 2008, Novo Nordisk also decided to discontinue the
`remaining part of its pulmonary activities.
`
`As a result of these decisions an additional cost of DKK 325
`million was included in Research and development costs in the
`2008 Annual Report.
`
`Other reserves
`Other reserves consist of exchange rate adjustments, cash flow
`hedging reserve and other adjustments.
`
`In 2008 and 2007, Novo Nordisk recorded the following charges
`related to the impairment of pulmonary diabetes projects.
`
`Dividends
`Dividends are recognised as a liability in the period in which they
`are declared at the Annual General Meeting.
`
`Consolidated statement of cash flows and financial
`resources
`The Consolidated statement of cash flows and financial
`resources is presented in accordance with the indirect method
`commencing with net profit. The statement shows cash flows for
`the year, the net change in cash and cash equivalents for the
`
`DKK million
`
`2008
`
`2007
`
`Impairment of intangible assets
`Severance pay and other employee
`related costs
`Impairment of tangible assets
`Commitments regarding clinical trials
`Leasing and investment commitments
`Other cost related to closure of
`pulmonary diabetes projects
`
`155
`
`53
`
`42
`
`75
`
`117
`
`753
`326
`129
`
`Sanofi Exhibit 2136.126
`Mylan v. Sanofi
`IPR2018-01675
`
`

`

`year, and cash and cash equivalents at the beginning and the
`end of the year.
`
`Cash and cash equivalents consist of cash and marketable
`securities, with original maturity of less than three months, less
`short-term bank loans. Financial resources consist of cash and
`cash equivalents, bonds with original term to maturity exceeding
`three months, and undrawn committed credit facilities expiring
`after more than one year.
`
`2 Changes in the scope of consolidation
`
`In 2008, no changes in the scope of consolidation occurred.
`
`In 2007, the Novo Nordisk subsidiary NNE A/S (NNE
`Pharmaplan A/S) completed the acquisition of the engineering
`activities in Pharmaplan GmbH from the German medical group
`Fresenius. The cost of the business combination was DKK 59
`million. The purchase price was paid in cash. The net assets
`were included in the consolidation as from 1 April 2007.
`
`In 2006, no changes in the scope of consolidation occurred.
`
`60 Novo Nordisk Annual Report 2008
`
`Total costs
`
`325
`
`1,325
`
`These charges were included in Research and development
`costs. In addition, a cost of DKK 52 million, related to the
`AERx® discontinuation, was included as financial expense in
`2007.
`
`Sales rebate accruals and provisions
`Sales rebate accruals and provisions are established in the
`same period as the related sales. The sales rebate accruals and
`provisions are recorded as a reduction in sales and are included
`in other provisions and Other liabilities.
`
`The accruals and provisions are based upon historical rebate
`payments. They are calculated based upon a percentage of
`sales for each product as defined by the contracts with the
`various customer groups.
`
`Factors that complicate the rebate calculations are:
`
`• Identification of the products which have been sold subject to a
`rebate
`• The customer or government price terms which apply
`• The estimated time lag between sale and payment of a rebate
`
`The US market has the most complex arrangements for rebates,
`discounts and allowances.
`
`Sanofi Exhibit 2136.127
`Mylan v. Sanofi
`IPR2018-01675
`
`

`

`Back to Contents
`
`Consolidated financial statements Notes - Consolidated financial statements D
`
`3 Critical accounting estimates and judgements (continued)
`
`Significant sales rebate and discount amount are rebates from
`sales covered by Medicaid and Medicare, the US public
`healthcare insurance system. Provisions for Medicaid and
`Medicare rebates have been calculated using a combination of
`historical experience, product and population growth, price
`increases, the impact of contracting strategies and specific
`terms in the individual agreements. For Medicaid, the calculation
`of rebates involves interpretation of relevant regulations, which
`are subject to challenge or change in interpretative guidance by
`government authorities. Although accruals are made for Medicaid
`and Medicare rebates at the time sales are recorded, the
`Medicare and Medicaid rebates related to the specific sale will
`typically be invoiced to Novo Nordisk up to six months later. Due
`to the time lag, in any particular period the rebate adjustments to
`sales may incorporate revisions of accruals for prior periods.
`
`Customer rebates are offered to a number of managed
`healthcare plans. These rebate programmes provide that the
`customer receives a rebate after attaining certain performance
`parameters relating to product purchases, formulary status and
`pre-established market share milestones relative to competitors.
`Since rebates are contractually agreed upon, rebates are
`estimated based on the specific terms in each agreement,
`historical experience, anticipated channel mix, product growth
`rates and market share information. Novo Nordisk considers the
`sales performance of products subject to managed healthcare
`rebates and other contract discounts and adjusts the provision
`periodically to reflect actual experience.
`
`Wholesaler charge-backs relate to contractual arrangements
`Novo Nordisk has with indirect customers, mainly in the US, to
`sell products at prices that are lower than the list price charged
`to wholesalers. A wholesaler charge-back represents the
`difference between the invoice price to the wholesaler and the
`indirect customer's contract price. Provisions are calculated for
`estimated charge-back using a combination of factors such as
`historical experience, current wholesaler inventory levels,
`contract terms and the value of claims received yet not
`processed. Wholesaler charge-backs are generally settled within
`one to three months of incurring the liability.
`
`Novo Nordisk believes that the accruals and provisions
`established for sales rebates are reasonable and appropriate
`based on current facts and circumstances. However, the actual
`amount of rebates and discounts may differ from the amounts
`estimated by management.
`
`A reconciliation of gross sales to net sales for North America
`(includes the US and Canada) is as follows:
`
`DKK million
`
`2008
`
`2007
`
`2006
`
`IPCs are measured based on a standard cost method which is
`reviewed regularly in order to ensure relevant measures of
`utilisation, production lead time and other relevant factors.
`Changes in the parameters for calculation of IPCs, including
`utilisation levels, production lead time etc could have an impact
`on the gross margin and the overall valuation of inventories. The
`carrying amount of IPCs is DKK 4,633 million at 31 December
`2008. Please refer to note 18 for further information.
`
`Allowances for doubtful trade receivables
`Trade receivables are stated at amortised cost less allowances
`for potential losses on doubtful trade receivables.
`
`Novo Nordisk maintains allowances for doubtful trade receivables
`for estimated losses resulting from the subsequent inability of
`the customers to make required payments. If the financial
`conditions of the customers were to deteriorate, resulting in an
`impairment of their ability to make payments, additional
`allowances may be required in future periods. Management
`specifically analyses trade receivables and analyses historical
`bad debt, customer concentrations, customer creditworthiness,
`current economic trends and changes in the customer payment
`terms when evaluating the adequacy of the allowance for doubtful
`trade receivables.
`
`The uncertainty connected with the allowance for doubtful trade
`receivables is considered limited. The carrying amount of
`allowances for doubtful trade receivables is DKK 602 million at
`31 December 2008. Please refer to note 19 for further
`information.
`
`Income taxes
`Management judgement is required in determining the Group's
`provision for deferred income tax assets and liabilities. Novo
`Nordisk recognises deferred income tax assets if it is probable
`that sufficient taxable income will be available in the future
`against which the temporary differences and unused tax losses
`can be utilised. Management has considered future taxable
`income in assessing whether deferred income tax assets should
`be recognised.
`
`The carrying amount of deferred income tax assets and deferred
`income tax liabilities is DKK 1,696 million and DKK 2,404 million
`respectively at 31 December 2008. Please refer to note 23 for
`further information.
`
`Provisions and contingencies
`As part of normal business Novo Nordisk issues credit notes for
`expired goods. Consequently a provision for future returns is
`made, based on historical statisti cal product returns.
`
`Gross sales
`
`22,639
`
`20,109
`
`17,196
`
`Revenue recognition for new product launches is based on
`specific facts and circumstances for the specific products,
`
`Sanofi Exhibit 2136.128
`Mylan v. Sanofi
`IPR2018-01675
`
`

`

`Gross-to-net sales
`adjustments:
`Medicaid and Medicare
`rebates
`Managed healthcare
`rebates
`Wholesaler charge-backs
`Cash discounts
`Sales returns
`Other rebates and
`allowances
`
`Total gross-to-net sales
`adjustments
`
`(1,672)
`
`(1,279)
`
`(1,186)
`
`(1,543)
`
`(2,949)
`(433)
`(512)
`
`(376)
`
`(1,333)
`
`(2,594)
`(381)
`(432)
`
`(344)
`
`(1,073)
`
`(2,074)
`(310)
`(116)
`
`(157)
`
`(7,485)
`
`(6,363)
`
`(4,916)
`
`Net sales
`
`15,154
`
`13,746
`
`12,280
`
`The carrying amount of sales rebate accruals and provisions is
`DKK 2,400 million at 31 December 2008. Please refer to notes 5
`and 25 for further information on sales accruals and provisions.
`
`Indirect production costs (IPCs)
`Work in progress and finished goods are stated at cost assigned
`by using the first-in, first-out method. Cost comprises direct
`production costs such as raw materials, consumables, energy
`and labour, as well as I PCs such as employee costs,
`depreciation, maintenance etc.
`
`including estimated demand and acceptance rates from well(cid:173)
`established products with similar market characteri sties. In
`recent years the products launched by Novo Nordisk have been
`comparable with either other products already on the market or
`products in therapy areas well known to Novo Nordisk, and
`therefore uncertainties surrounding products launched have been
`limited.
`
`The carrying amount of provision for returned products is DKK
`594 million at 31 December 2008. Please refer to note 25 for
`further information.
`
`Management of the Group makes judgements about provisions
`and contingencies, including the probability of pending and
`potential future litigation outcomes that in nature are dependent
`on future events that are inherently uncertain. In making its
`determinations of likely outcomes of litigation etc, management
`considers the evaluation of external counsel knowledgeable
`about each matter, as well as known outcomes in case law.
`Provisions for pending litigations are recognised under Other
`provisions. Please refer to notes 25 and 36 for a description of
`significant litigations pending.
`
`Novo Nordisk Annual Report 2008
`
`61
`
`Sanofi Exhibit 2136.129
`Mylan v. Sanofi
`IPR2018-01675
`
`

`

`Back to Contents
`
`D Consolidated financial statements Notes - Consolidated financial statements
`
`4 Segment information
`
`Business segments
`
`For management reporting purposes, the Group operates in two
`global business segments based on different therapies:
`
`Diabetes care:
`The business segment includes discovery, development,
`manufacturing and marketing of products within the areas of
`insulin, GLP-1 and related delivery systems as well as oral
`antidiabetic products (OAD).
`
`Biopharmaceuticals:
`The business segment includes discovery, development,
`manufacturing and marketing of products within the therapy
`areas haemostasis management,
`
`growth hormone therapy, hormone replacement therapy,
`inflammation therapy and other therapy areas.
`
`No operating segments have been aggregated to form the above
`reportable operating segments.
`
`Management monitors the operating result of its business
`segments separately for the purpose of making decisions about
`resource allocation and performance assessment. Segment
`performance is evaluated based on operating profit consistent
`with the consolidated financial statements. Group financing
`(including financial expense and financial income) and income
`taxes are managed on a group basis and are not allocated to
`operating segments.
`
`Business segments
`
`DKK million
`
`Segment sales and results
`
`Sales
`Modern insulins (insulin analogues)
`Human insulins
`Insulin-related sales
`Oral antidiabetic products (OAD)
`
`Diabetes care total
`
`Haemostasis management
`Growth hormone therapy
`Hormone replacement therapy
`Other products
`
`Biopharmaceuticals total
`
`Sales
`Change in DKK (%)
`Change in local currencies(%)
`Cost of goods sold
`Sales and distribution costs
`Research and development costs
`- hereof costs related to discontinuation of all pulmonary
`diabetes projects
`Administrative expenses
`Licence fees and other operating income
`Operating profit
`
`2008
`
`2007
`
`2006
`
`Diabetes care
`
`17,317
`11,804
`1,844
`2,391
`
`14,008
`12,572
`1,749
`2,149
`
`10,825
`13,451
`1,606
`1,984
`
`33,356
`
`30,478
`
`27,866
`
`33,356
`9.4%
`12.7%
`8,705
`10,497
`4,791
`(325)
`
`1,936
`142
`7,569
`
`30,478
`9.4%
`14.1%
`8,404
`9,962
`6,116
`(1,325)
`
`1,916
`179
`4,259
`
`27,866
`16.1%
`17.0%
`8,123
`9,257
`3,898
`
`1,748
`142
`4,982
`
`Sanofi Exhibit 2136.130
`Mylan v. Sanofi
`IPR2018-01675
`
`

`

`Operating profit (excl cost related to discontinuation of all pulmonary
`diabetes projects)
`
`7,894
`
`5,584
`
`Share of profit in associated companies
`Financial income (net)
`Profit before income taxes
`Income taxes
`
`Net profit
`
`Other segment items
`
`Depreciation and amortisation
`Impairment losses in the Income statement
`Additions to property, plant and equipment and intangible
`assets (net)
`Long-term assets
`Total assets
`Total liabilities
`
`1,899
`208
`1,628
`
`16,037
`30,468
`8,398
`
`1,774
`931
`1,995
`
`16,884
`30,257
`7,980
`
`1,632
`45
`2,499
`
`17,606
`29,714
`7,470
`
`Geographical information
`
`2008
`
`2007
`
`2006
`
`2008
`
`2007
`
`2006
`
`DKK million
`
`Europe*)
`
`North America
`
`Sales
`Change in DKK (%)
`Change in local currencies(%)
`Additions to property, plant and equipment and intangible
`assets (net)
`Property, plant and equipment
`Total assets
`
`17,219
`5.3%
`6.7%
`1,458
`
`15,624
`40,849
`
`16,350
`6.9%
`6.8%
`1,651
`
`16,398
`38,428
`
`15,300
`9.1%
`8.9%
`2,065
`
`16,765
`35,232
`
`15,154
`10.2%
`17.7%
`137
`
`973
`3,532
`
`13,746
`11.9%
`21.8%
`509
`
`998
`2,873
`
`12,280
`28.8%
`29.4%
`460
`
`1,480
`3,819
`
`*) The country of domicile for Novo Nordisk is disclosed as Europe in the geographical information.
`
`62 Novo Nordisk Annual Report 2008
`
`Sanofi Exhibit 2136.131
`Mylan v. Sanofi
`IPR2018-01675
`
`

`

`Back to Contents
`
`Consolidated financial statements Notes - Consolidated financial statements D
`
`4 Segment information (continued)
`
`There are no sales or other transactions between the business
`segments. Costs have been split between business segments
`based on a specific allocation with the addition of a minor
`number of corporate overheads allocated systematically to the
`segments. Other operating income has been allocated to the two
`segments based on the same principle. Segment assets
`comprise the assets that are applied directly to the activities of
`the segment, including intangible assets, property, plant and
`equipment, long-term financial assets, inventories, trade
`receivables and other receivables. Segment liabilities comprise
`liabilities derived from the activities of the segment, including
`provisions, trade payables and other liabilities.
`
`No single customer represents 10% or more of the total revenue.
`
`Geographical information
`
`The Group operates in four main geographical areas:
`
`Europe: EU, EFTA, Albania, Bosnia-Herzegovina, Croatia,
`Macedonia, Serbia & Montenegro and Kosovo
`North America: The US and Canada
`Japan & Oceania: Japan, Australia and New Zealand
`International Operations: All other countries
`
`Sales are attributed to geographical regions based on the
`location of the customer. There are no sales between regions.
`Total assets and additions to property, plant and equipment and
`intangible assets are based on the location of the assets.
`
`2008
`
`2007
`
`2006
`
`2008
`
`2007
`
`2006
`
`2008
`
`2007
`
`2006
`
`Biopharmaceuticals
`
`Corporate/unallocated
`
`Total
`
`17,317
`
`14,008
`
`10,825
`
`11,804
`
`12,572
`
`13,451
`
`1,844
`
`2,391
`
`1,749
`
`2,149
`
`1,606
`
`1,984
`
`33,356
`
`30,478
`
`27,866
`
`6,396
`
`3,865
`
`1,612
`
`324
`
`5,865
`
`3,511
`
`1,668
`
`309
`
`5,635
`
`3,309
`
`1,607
`
`326
`
`6,396
`
`3,865
`
`1,612
`
`324
`
`5,865
`
`3,511
`
`1,668
`
`309
`
`5,635
`
`3,309
`
`1,607
`
`326
`
`12,197
`
`11,353
`
`10,877
`
`12,197
`
`11,353
`
`10,877
`
`Sanofi Exhibit 2136.132
`Mylan v. Sanofi
`IPR2018-01675
`
`

`

`12,197
`12,197
`
`11,353
`11,353
`
`10,877
`10,877
`
`7.4%
`7.4%
`11.1%
`11.1%
`1,404
`1,404
`
`2,369
`2,369
`
`3,065
`3,065
`
`_
`
`699
`699
`
`144
`144
`
`4,804
`4,804
`
`4,804
`4,804
`
`4.4%
`4.4%
`9.9%
`9.9%
`1,389
`1,389
`
`2,409
`2,409
`
`2,422
`2,422
`
`_
`
`592
`592
`
`142
`142
`
`4,683
`4,683
`
`4.683
`4,683
`
`11.6%
`11.6%
`12.7%
`12.7%
`1,462
`1,462
`
`2,351
`2,351
`
`2,418
`2,418
`
`_
`
`639
`639
`
`130
`130
`
`4,137
`4,137
`
`—
`
`45,553
`45,553
`
`41,831
`41,831
`
`38,743
`38,743
`
`8.9%
`8.9%
`12.2%
`12.2%
`10,109
`10,109
`
`8.0%
`8.0%
`12.9%
`12.9%
`9,793
`9,793
`
`14. 8%
`14.8%
`15.7%
`15.7%
`9,585
`9,585
`
`12,866
`12,866
`
`12,371
`12,371
`
`11,608
`11,608
`
`7,856
`7,856
`
`8,538
`8,538
`
`6,316
`6,316
`
`(325)
`(325 J
`
`(1,325)
`(1, 325 )
`
`—
`
`2,635
`2,635
`
`286
`286
`
`2, 508
`2,508
`
`321
`321
`
`12,373
`12,373
`
`8,942
`8,942
`
`12,698
`12,698
`
`10, 267
`10,267
`
`(124)
`[124]
`
`446
`446
`
`1,233
`1.233
`
`796
`796
`
`(260)
`(260)
`
`305
`305
`
`(124)
`[124)
`
`446
`446
`
`1,233
`1,233
`
`796
`796
`
`10,971
`10,971
`
`2, 387
`2,387
`
`272
`272
`
`9,119
`9,119
`
`—
`
`(260)
`(260)
`
`305
`305
`
`3,050
`3,050
`
`2.449
`2,449
`
`2,712
`2,712
`
`3,050
`3,050
`
`2,449
`2,449
`
`12,695
`12,695
`
`9,164
`9,164
`
`2,712
`2,712
`
`9,645
`9,645
`
`8,522
`8,522
`
`6,452
`6,452
`
`284
`284
`
`3
`3
`
`329
`329
`
`3,220
`3,220
`
`6,640
`6,640
`
`2,448
`2,448
`
`263
`263
`
`—
`
`391
`391
`
`3,470
`3,470
`
`6,685
`6,685
`
`2,488
`2,488
`
`291
`291
`
`—
`
`509
`509
`
`47
`47
`
`1
`1
`
`-
`
`37
`37
`
`2
`2
`
`~
`
`40
`40
`
`1 34
`134
`
`1
`
`2,230
`2,230
`
`21 2
`212
`
`2,074
`2,074
`
`933
`933
`
`1,963
`1,963
`
`1 79
`179
`
`1,957
`1,957
`
`2, 386
`2,386
`
`3, 009
`3,009
`
`3, 684
`3,684
`
`2,282
`2,282
`
`3, 075
`3,075
`
`2, 567
`2,567
`
`21,539
`21,539
`
`23, 429
`23,429
`
`23,857
`23,857
`
`6,783
`6,783
`
`13,495
`1 3,495
`
`10, 789
`10,789
`
`8,195
`8,195
`
`50,603
`50,603
`
`47, 731
`47,731
`
`44,692
`44,692
`
`2,269
`2,269
`
`6,778
`6,778
`
`5,081
`5,081
`
`4,831
`4,831
`
`17,624
`17,624
`
`15,549
`15,549
`
`14,570
`14,570
`
`Sanofi Exhibit 2136.133
`Sanofi Exhibit 2136.133
`Mylan v. Sanofi
`Mylan v. Sanofi
`IPR2018-01675
`IPR2018-01675
`
`

`

`2008
`
`2007
`
`2006
`
`2008
`
`2007
`
`2006
`
`2008
`
`2007
`
`2006
`
`International Operations
`
`Japan & Oceania
`
`Total
`
`8,425
`
`7,295
`
`6,494
`
`4,755
`
`4,440
`
`4,669
`
`45,553
`
`41,831
`
`38,743
`
`15.5%
`20.5%
`354
`
`1,827
`
`5,267
`
`12.3%
`17.8%
`222
`
`2,031
`
`5,648
`
`18.1%
`18.7%
`465
`
`1,897
`
`4,618
`
`7.1%
`2.1%
`8
`
`215
`
`955
`
`(4.9%)
`3.1%
`4
`
`178
`
`782
`
`(0.9%)
`5.0%
`19
`
`8.9%
`12.2%
`1,957
`
`8.0%
`12.9%
`2,386
`
`14.8%
`15.7%
`3,009
`
`208
`
`18,639
`
`19,605
`
`20,350
`
`1,023
`
`50,603
`
`47,731
`
`44,692
`
`Novo Nordisk Annual Report 2008
`
`63
`
`Sanofi Exhibit 2136.134
`Mylan v. Sanofi
`IPR2018-01675
`
`

`

`Sanofi Exhibit 2136.135
`Sanofi Exhibit 2136.135
`Mylan v. Sanofi
`Mylan v. Sanofi
`IPR2018-01675
`|PR2018-01675
`
`

`

`Back to Contents
`
`D Consolidated financial statements Notes - Consolidated financial statements
`
`5 Sales rebate accruals and provisions
`
`DKK million
`
`2008
`
`2007
`
`2006
`
`At the beginning of the
`year
`Additional rebates
`deducted from sales
`Adjustments to previous
`year's accruals and
`provisions
`Payments and grants of
`rebates during the year
`Exchange rate
`adjustments
`
`1,833
`
`1,847
`
`1,872
`
`4,157
`
`3,176
`
`2,761
`
`(209)
`
`(168)
`
`(218)
`
`(3,469)
`
`(2,835)
`
`(2,372)
`
`88
`
`(187)
`
`(196)
`
`At the end of the year
`
`2,400
`
`1,833
`
`1,847
`
`7 Depreciation, amortisation and impairment
`losses
`
`DKK million
`
`2008
`
`2007
`
`2006
`
`Included in the Income
`statement under the
`following headings:
`Cost of goods sold
`Sales and distribut