Novo Nordisk A/s Class B · OMXCOP:NOVO_B
Novo Nordisk A/s Class B — H1 2014 Earnings Presentation
23 slides from Novo Nordisk A/s Class B's earnings presentation, Aug 8, 2014
Slide 1: Investor presentation First six months of 2014
Slide 1 Investor presentation First six months of 2014 08 August London
Slide 2: Agenda
Investor presentation First six months of 2014 Slide 2 Agenda Highlights and key events by Lars Rebien Sørensen, CEO Sales update by Kåre Schultz, President and COO R&D update by Mads Krogsgaard Thomsen, CSO Financials and outlook by Jesper Brandgaard, CFO Questions & answers session
Slide 3: Forward-looking statements
Investor presentation First six months of 2014 Slide 3 Forward-looking statements Novo Nordisk’s reports filed with or furnished to the US Securities and Exchange Commission (SEC), including this document as well as the company’s Annual Report 2013 and Form 20-F, both filed with the SEC in February
Slide 4: Highlights – first six months of 2014
Investor presentation First six months of 2014 Slide 4 Highlights – first six months of 2014 Sales development • Sales increased by 7% in local currencies and 1% in Danish kroner • North America, International Operations and Region China grew by 9%, 11% and 17% in local currencies, respectively • Mo
Slide 5: Novo Nordisk works with five strategic focus areas based on five core capabilities
Investor presentation First six months of 2014 Slide 5 Novo Nordisk works with five strategic focus areas based on five core capabilities Strategic focus areas Core capabilities Engineering, Deep Efficient Planning Building formulating, disease large-scale and Expand leadership and developing under-
Slide 6: Diabetes pandemic remains a major burden
Investor presentation First six months of 2014 Slide 6 Diabetes pandemic remains a major burden The number of people with diabetes Diagnosis and optimal treatment according to IDF remains a challenge – the rule of halves North America Europe Japan & Korea Million 100% people China International Oper
Slide 7: Novo Nordisk has delivered sustained double digit growth throughout the last decade
Investor presentation First six months of 2014 Slide 7 Novo Nordisk has delivered sustained double digit growth throughout the last decade Sales growth in local currencies Operating profit growth in local currencies from 2004 to 2013 from 2004 to 2013 Sales growth Average growth Operating profit gro
Slide 8: Novo Nordisk has a strong leadership position within the growing diabetes care market
Investor presentation First six months of 2014 Slide 8 Novo Nordisk has a strong leadership position within the growing diabetes care market Global diabetes care market Global diabetes care by treatment class value market share DKK GLP-1 Insulin OAD Novo Nordisk Sanofi Merck Lilly billion Takeda Nov
Slide 9: High barriers to entry in biologics
Investor presentation First six months of 2014 Slide 9 High barriers to entry in biologics Novo Nordisk’s position is protected Significant barriers to entry by patents and value chain setup for biosimilar players Patent protection1 Unique value chain position EU/US0 Research & Development Research
Slide 10: North America remains the main contributor to growth
Investor presentation First six months of 2014 Slide 10 North America remains the main contributor to growth Sales as reported – first six months of 2014 Growth analysis – first six months of 2014 Japan & Korea Local currencies Growth Share of growth Region China (10%) North America 9% 61% +13% 6% 1
Slide 11: Growth is driven by modern insulin and Victoza
Investor presentation First six months of 2014 Slide 11 Growth is driven by modern insulin and Victoza® Sales as reported – first six months of 2014 Growth analysis – first six months of 2014 Other Local currencies Growth Share of growth Norditropin® +2% New-generation insulin n/a 7% 0% 3% 3% Modern
Slide 12: Tresiba roll-out continues with encouraging performance in countries with competitive reimbursement
Investor presentation First six months of 2014 Slide 12 Tresiba® roll-out continues with encouraging performance in countries with competitive reimbursement Tresiba® value market share in basal insulin segment in selected markets Key launch observations Switzerland Mexico Japan • Tresiba® grows shar
Slide 13: Significant growth opportunities fuelled by strong R&D pipeline
Investor presentation First six months of 2014 Slide 13 Significant growth opportunities fuelled by strong R&D pipeline in diabetes, obesity, haemophilia and inflammation PHASE 1 PHASE 2 PHASE 3 SUBMITTED APPROVED3 OG217GT – Oral GLP-1 OG217SC - Oral GLP-1 Faster-acting insulin aspart Xultophy® (EU2
Slide 14: DEVOTE data to support pre-specified interim analysis for Tresiba now expected around turn of 2014/15
Investor presentation First six months of 2014 Slide 14 DEVOTE data to support pre-specified interim analysis for Tresiba® now expected around the turn of the year 2014/15 DEVOTE (EX1250-4080) trial design Status and timeline • Recruitment progressing ahead of plans and more than half 7,500 people T
Slide 15: Key development milestones within Diabetes & Obesity
Investor presentation First six months of 2014 Slide 15 Key development milestones within Diabetes & Obesity Xultophy® (IDegLira) receives positive opinion from European regulatory authorities (CHMP) Liraglutide 3 mg FDA Advisory Committee meeting scheduled on 11 September 2014 Phase 3a study with f
Slide 16: Key development milestones within Biopharmaceuticals
Investor presentation First six months of 2014 Slide 16 Key development milestones within Biopharmaceuticals Positive results from phase 3a paediatric trial and phase 3 extension trial with N9-GP for haemophilia B treatment Successful completion of phase 3a surgery trial with N8-GP in people with ha
Slide 17: Upcoming key milestones within diabetes and obesity
Investor presentation First six months of 2014 Slide 17 Upcoming key milestones within diabetes and obesity Clinical Commercial Regulatory Project 2014 2015 2016 Ryzodeg® First commercial launch IDegLira EU Commission approval Liraglutide 3 mg US & EU approval decisions Tresiba® DEVOTE interim resul
Slide 18: Financial results – first six months of 2014
Investor presentation First six months of 2014 Slide 18 Financial results – first six months of 2014 DKK million H1 2014 H1 2013 Change Sales 41,972 41,363 1% Gross profit 34,835 34,148 2% Gross margin 83.0% 82.6% Sales and distribution costs 10,645 11,364 (6%) Percentage of sales 25.4% 27.5% Resear
Slide 19: Non-hedged currencies
Investor presentation First six months of 2014 Slide 19 Average rates year to date for US dollar, Japanese yen and major non-hedged currencies remains below 2013 average 130 USD/DKK CNY/DKK JPY/DKK GBP/DKK CAD/DKK Index (1 Jan 2013 = 100) Hedged 2013 2014 Spot Impact of a Hedging 120 Currencies aver
Slide 20: Financial outlook for 2014
Investor presentation First six months of 2014 Slide 20 Financial outlook for 2014 Expectations Previous expectations 7 Aug 2014 1 May 2014 Sales growth - local currencies 7-10% 7-10% Sales growth - reported Around 3 percentage points lower Around 4.5 percentage points lower Operating profit growth
Slide 21: Long-term financial targets
Investor presentation First six months of 2014 Slide 21 Long-term financial targets Performance against long-term financial targets Average Result Target2 2009-20131 2013 Operating profit growth 21% 7% 15% Operating profit growth in local currencies 18% 15% Operating margin 34% 38% 40% Operating pro
Slide 22: Closing remarks
Investor presentation First six months of 2014 Slide 22 Closing remarks Solid market performance Promising pipeline >10% annual diabetes care market growth driven •> • The only company with a full portfolio of novel by diabetes prevalence insulin products • 28% market share in diabetes care and soli
Slide 23: Schedules for group sessions shown on postcards
Investor presentation First six months of 2014 Slide 23 Schedules for group sessions shown on postcards Group sessions to start 12.45 Group A to start in Bishopsgate Group B to start in Exchange Group C to start in Fenchurch Group D to start in Moorgate