Copenhagen, Denmark, April 12, 2023 /PRNewswire/ — Novo Holdings today announced its 2022 financial results, with negative -6% return on investment portfolio and total income and return DKK 3 trillion (€0.4 billion). of positive total income and returns DKK 3 trillion Novo is driven by the Group’s strong performance and flexibility in its investment portfolio, which has outperformed the benchmark.
of total income and returns DKK 3 trillion Income from dividends and share repurchase programs of Novo Group companies (Novo Nordisk A/S and Novozymes A/S), total DKK 14 trillion (€2.0 billion), and a return from the investment portfolio of -6% (against the benchmark of -7%), correspondingly DKK -11 trillion (€-1.6 billion). The 5- and 10-year trailing returns for the investment portfolio are 7% and 11%, respectively.
Novo Holdings closed with net assets of 2022 DKK 805 trillion (€108 billion).
Qasim KuteThe CEO of Novo Holdings said: “2022 was a very difficult year to navigate with significant declines in equity and bond markets. Despite this backdrop, Novo Holdings was still able to report positive total earnings and returns. Strong performances by Novo Nordisk and Novozymes, as well as investment A strong relative performance by the portfolio.”
“2022 demonstrated the importance of the geographic and asset class diversification strategy we launched back in 2019. In particular, our expansion into credit bonds, real estate and infrastructure helped the investment portfolio deliver better relative returns,” Qasim said.
Increasing focus on bioindustrial
Companies investing in bioindustrial or biosolutions companies that provide sustainable biological solutions to industry continued to form a substantial investment theme for Novo Holdings in 2022. With 22 bioindustrial companies in its investment portfolio, Novo Holdings is today one of the world’s most active investors in this sector. area.
December 12, 2022 It was a historic day for Novo Group and Novo Holdings with the announcement of the proposed merger of Novozymes and Chris. Hansen, two of Novo Holdings’ largest shareholdings. The combination will create an industrial biosolutions powerhouse strongly positioned to deliver long-term value to all stakeholders and contribute to the green transition.
“Bio-solutions are an important driver of the green transition of industry and society, and we are committed to maintaining our position as a world-leading investor in this sector,” said. Qasim Kute. “In late 2022 we established a dedicated bioindustrial investment team to better accommodate the growing portion of our portfolio.”
High activity despite market turbulence
Novo Holdings’ investment portfolio consists of life science investments (seed investments, growth investments, venture investments and principal investments), which make up 54% of the portfolio, and capital investments, which make up 46% of the portfolio.
In 2022, Life Science Investments reported negative DKK -6 trillion (€-0.9 billion) returns, and capital investment closed the year with negative DKK – 5 trillion (€-0.7 billion) back. By the end of the year, Novo Holdings had investments in 161 companies, up from 151 by the end of 2021.
“Despite the geopolitical and macroeconomic headwinds, I am pleased that Novo Holdings has managed to remain highly active and engaged on the investment front in 2022. Our lead investment team has invested DKK 13 billion (€1.8 billion) in three acquisitions. US-based companies. Our three Other life science investment verticals, namely Growth Investments, Venture Investments and Seed Investments, were also active throughout the year and welcomed many new companies to our portfolio, as well as managing several successful exits,” Qasim Kute said
“Our capital investment team closed out the year DKK 82 billion (€11.0 billion) of assets under management. The portfolio generated a return and profit of -6% DKK -5 billion (€-0.7 billion). The asset-class-weighted benchmark return for 2022 is -14%, so it’s fair to say that our capital investment team has successfully navigated the financial storms of 2022.”
- The Novo Group Companies, Novo Nordisk A/S and Novozymes A/S delivered historically strong results. Novo Nordisk’s sales grew by 26% in DKK and 16% at constant exchange rates, and Novozymes reported 9% organic sales growth in 2022, the highest organic sales growth in more than a decade.
- Capital investment Continued to expand its real estate portfolio in 2022, including increasing its stake in Dades, one of the largest real estate investment firms. Denmark. The capital investment team committed €700 million to 7 portfolio managers within real assets. A highlight was the €265 million commitment to Glentra, a newly established infrastructure fund and investment in 18 solar projects. Spain Through our investments Spain– Based Everwood Capital Fund V.
- A major investment deployed DKK 13 trillion of equity in three private US controlling investments (Medical Knowledge Group, The Retedose Corporation, and KabaFusion) and four investments in publicly listed US companies. The most significant exit occurred in the second half of the year, involving Envirotainer, a global provider of mission-critical, temperature-controlled air cargo services for the pharmaceutical industry. Owned by Novo Holdings and Cinven, Envirotainer was sold to EQT and Mubadala for an enterprise value of €2.8 billion, generating an IRR of 28.9%.
- growth investment Implemented 4 new investments and 8 follow-on investments in 2022, deployment DKK 2 trillion. The value of the growth investment portfolio was DKK 8 trillion At the end of 2022, slightly more than at the end of 2021. At year-end, the growth investment portfolio included investments in 26 companies.
- Venture investment Implementation, deployment of 38 investments during 2022 DKK 3 trillion. During the year, the Venture Investment team helped Arcellx execute its initial public offering (IPO). Later in 2022, Arcellx completed a follow-on offer, raising USD 270 million Total in public capital markets in 2022. At the end of 2022, the value of the portfolio DKK 11.2 trillion. The portfolio consisted of 54 companies, of which 57% were public and 43% were private.
- seed investment Invested in three new companies, including the launch of Breye Therapeutics. Furthermore, Team Sound was one of the cornerstone investors in BioVentures’ Fund I. The seed investment team divested two portfolio companies: Syndesi Therapeutics was acquired by AbbVie. 1 billion US dollars and USD 130 million in front BioPhero ApS was almost acquired by FMC Corporation USD 200 million. By the end of 2022, the seed portfolio counted 40 companies, and its value DKK 3 trillion.
Return on investment portfolio:
The table shows the 5- and 10-year returns for life science investments, capital investments and the total investment portfolio. Results for 2021 are included for comparison with long-term returns.
Income and return on investment (in DKK (EUR) billions):
As a holding and investment company, Novo Holdings invests to generate long-term returns. The total value of holdings and investment assets was DKK 805 trillion (EUR 108 billion) at the end of 2022.
Notes: Novo Group income includes dividends from Novo Nordisk A/S and Novozymes A/S, as well as income related to the sale of shares in Novo Group companies. In the investment property overview, Novo Group’s value is presented with both A and B shares valued at the closing price of B shares. 31 December 2022 and 31 December 2021. Income and investment returns as well as total holdings and investment assets include the Novo Nordisk Foundation’s share of returns and assets.
About performance overview of investment portfolio:
All returns are calculated in DKK and reflect total returns excluding internal costs. Returns on life science investments are calculated as the internal rate of return (IRR) based on the book value at the end of the measurement period and the cash flows within the measurement period compared to the book value at the beginning of the measurement period. Return on capital investment and investment portfolio return are based on Time Weighted Return (TWR).
Read Novo Holdings Annual Report 2022 here.
About Novo Holdings A/S
Novo Holdings is a holding and investment company responsible for managing the property and assets of the Novo Nordisk Foundation. Novo Holdings aims to improve the health of people and the sustainability of society and the planet by generating attractive long-term returns on the assets of the Novo Nordisk Foundation.
Novo Holdings, wholly owned by the Novo Nordisk Foundation, is the controlling shareholder of Novo Nordisk and Novozymes (Novo Group companies) and manages investment portfolios with a long-term return perspective. Novo Holdings invests in life science companies at all stages of development and also manages a broad portfolio of equity, bond, real estate and infrastructure assets as well as private equity investments.
Novo Holdings had total assets of €108 billion at the end of 2022. More information: www.novoholdings.dk.
About the Novo Nordisk Foundation
was established in Denmark In 1924, the Novo Nordisk Foundation is an enterprise foundation with philanthropic objectives. The foundation’s vision is to improve people’s health and the sustainability of society and the planet. The foundation’s mission is to advance knowledge and solutions to support the green transformation of society, along with research and innovation in the prevention and treatment of cardiometabolic and infectious diseases.
Source Novo Holdings