Item 3.

Key Information

Item 3. Key Information

3.A Selected financial data
The selected financial information set out below has
All financial data should be read in conjunction with
been extracted from our consolidated financial state-
“Item 5. Operating and Financial Review and
ments prepared in accordance with IFRS as issued by
Prospects.” All financial data presented in this Form
the IASB. Our consolidated financial statements for the
20-F are quali- fied in their entirety by reference to the
years ended December 31, 2019, 2018 and 2017, are
consolidated financial statements and their notes.
included in “Item 18. Financial Statements” in this
Form 20-F.

Year ended December 31,

(USD millions, except per share information) 2019 2018 2017 2016 2015

INCOME STATEMENT DATA1

Net sales to third parties from continuing operations 47 445 44 751 42 338 41 975 42 641
Operating income from continuing operations 9 086 8 403 8 702 8 248 8 522
Income from associated companies 659 6 438 1 108 703 266
Interest expense – 850 – 932 – 750 – 675 – 637
Other financial income and expense 45 186 42 – 385 – 433
Income before taxes from continuing operations 8 940 14 095 9 102 7 891 7 718
Taxes – 1 793 – 1 – 1 – 1 – 1
295 603 095 066
Net income from continuing operations 7 147 12 800 7 499 6 796 6 652
Net (loss) / income from discontinued operations
before gain on distribution of Alcon Inc. to Novartis – 101 – 186 204 – 98 376
shareholders
Gain on distribution of Alcon Inc. to Novartis AG shareholders 4 691
Net income related to portfolio transformation transactions 10 766
Net income from discontinued operations 4 590 – 186 204 – 98 11 142
Group net income 11 737 12 614 7 703 6 698 17 794

Item 3. Key Information

3.A Selected financial data

The selected financial information set out below has been extracted from our consolidated financial state- ments prepared
in accordance with IFRS as issued by the IASB. Our consolidated financial statements for the years ended December 31,
2019, 2018 and 2017, are included in “Item 18. Financial Statements” in this Form 20-F.

All financial data should be read in conjunction with “Item 5. Operating and Financial Review and Prospects.” All financial
data presented in this Form 20-F are quali- fied in their entirety by reference to the consolidated financial statements and
their notes.

Year ended December 31

(USD millions, except per share information)

INCOME STATEMENT DATA1
Net sales to third parties from continuing operations
Operating income from continuing operations
Income from associated companies
Interest expense
Other financial income and expense
Income before taxes from continuing operations
Taxes
Net income from continuing operations
 Item 3. Key Information
Net (loss) / income from discontinued operations before gain on distribution of Alcon Inc. to Novartis shareholders
Gain on distribution of Alcon Inc. to Novartis AG shareholders
Net income related to portfolio transformation transactions
Net income from discontinued operations
Group net income

(USD millions)
BALANCE SHEET DATA
Cash, cash equivalents, and marketable securities and derivative financial instruments
Inventories
Other current assets
Non-current assets
Assets of disposal group held for sale1
Total assets
Trade accounts payable
Other current liabilities
Non-current liabilities
Liabilities of disposal group held for sale1
Total liabilities
Issued share capital and reserves attributable to shareholders of Novartis AG
Non-controlling interests
Total equity
Total liabilities and equity
Net assets
Outstanding share capital
Total outstanding shares (millions)
(USD millions) 2019 2018 2017 2016 2015

BALANCE SHEET DATA

Cash, cash equivalents, and marketable
securities and derivative financial instruments 11 446 15 964 9 485 7 777 5 447
Inventories 5 982 6 956 6 867 6 255 6 226
Other current assets 11 235 11 836 11 856 10 899 11 172
Non-current assets 88 866 110 104 105 108
000 871 193 711
Assets of disposal group held for sale 1 841 807
Total assets 118 370 145 133 130 131
563 079 124 556
Trade accounts payable 5 424 5 556 5 169 4 873 5 668
Other current liabilities 22 809 24 000 18 234 17 336 18 040
Non-current liabilities 34 555 37 264 35 449 33 024 30 726
Liabilities of disposal group held for sale 1 31 51
Total liabilities 62 819 66 871 58 852 55 233 54 434
Issued share capital and reserves attributable to
shareholders of Novartis AG 55 474 78 614 74 168 74 832 77 046
Non-controlling interests 77 78 59 59 76
Total equity 55 551 78 692 74 227 74 891 77 122
Total liabilities and equity 118 370 145 133 130 131
563 079 124 556
Net assets 55 551 78 692 74 227 74 891 77 122
Outstanding share capital 856 875 869 896 890
Total outstanding shares (millions) 2 265 2 311 2 317 2 374 2 374