Novo Nordisk A/s Class B · OMXCOP:NOVO_B
Novo Nordisk A/s Class B — Q1 2020 Earnings Presentation
120 slides from Novo Nordisk A/s Class B's earnings presentation, May 6, 2020
Slide 1: Investor presentation First three months of 2020
Investor presentation First three months of 2020 ROSHNI Roshni is living with type 1 diabetes in India
Slide 2: Agenda
Investor presentation First three months 2020 Slide Slide 2 2 Agenda COVID-19 update Highlights Sales update R&D update Financials and outlook Strategic aspirations 2025
Slide 3: Forward-looking statements
Investor presentation First three months 2020 Slide 3 Forward-looking statements Novo Nordisk’s reports filed with or furnished to the US Securities and Exchange Commission (SEC), including this presentation as well as the company’s statutory Annual Report 2019 and Form 20-F, which are both expected
Slide 4: Novo Nordisk response to COVID-19 pandemic
Investor presentation First three months 2020 Slide 4 Novo Nordisk response to COVID-19 pandemic Novo Nordisk priorities during COVID-19 Novo Nordisk status across the value chain • All manufacturing sites operating Safeguard the health of our employees Production • Medicines available to patients w
Slide 5: Highlights first quarter 2020
Investor presentation First three months 2020 Slide 5 Strategic aspirations 2025 - Highlights first quarter 2020 Diabetes: • Rybelsus® received approval for the treatment of type 2 diabetes in the EU and the UK Additional US affordability offerings launched in Q1 • Ozempic® marketing authorisation a
Slide 6: Sales growth of 14% at CER – around 7% adjusted for COVID-19 related stocking
Investor presentation First three months 2020 Slide Slide 6 6 Sales growth of 14% at CER – around 7% adjusted for COVID-19 related stocking Reported sales split for the first quarter of 2020 Growth drivers for first quarter of 2020 Insulin GLP-1 Other diabetes Sales growth of 14% at CER, driven by s
Slide 7: Sales growth driven by all therapy areas
Investor presentation First three months 2020 Slide Slide 7 7 Sales growth driven by all therapy areas Added reported sales and growth per therapy area and Growth drivers for the first quarter of 2020 operational unit at CER International Operations North America Operations • COVID-19-related stocki
Slide 8: Early Rybelsus uptake further supports GLP-1 NBRx and TRx market leadership in the US
Investor presentation First three months 2020 Slide Slide 8 8 Early Rybelsus® uptake further supports GLP-1 NBRx and TRx market leadership in the US USA GLP-1 NBRx market share USA GLP-1 TRx market size and market share NN GLP-1 Ozempic® Rybelsus® NN GLP-1 Ozempic® Rybelsus® dulaglutide Victoza® dul
Slide 9: Novo Nordisk is growing its diabetes market share in International Operations
Investor presentation First three months 2020 Slide Slide 9 9 Novo Nordisk is growing its diabetes market share in International Operations Diabetes value market share and share of growth in IO Reported Insulin and GLP-1 sales, growth, and share of IO growth Market NN share of DKK NN market share In
Slide 10: Global rollout and promotional activities drive Saxenda sales growth of 30% at CER
Investor presentation First three months 2020 Slide Slide 10 10 Global rollout and promotional activities drive Saxenda® sales growth of 30% at CER Reported sales split in operational units Novo Nordisk remains global market leader International Operations North America Operations • Novo Nordisk exp
Slide 11: Biopharm sales growth of 16% at CER, driven by haemophilia and growth disorder products
Investor presentation First three months 2020 Slide Slide 11 11 Biopharm sales growth of 16% at CER, driven by haemophilia and growth disorder products Increase in reported Biopharm sales across products Biopharm sales driven by global commercial execution DKK Growth at CER Biopharm sales growth dri
Slide 12: Phase 2 trial investigating semaglutide in the treatment of NASH meets primary endpoint
Investor presentation First three months 2020 Slide 12 12 Phase 2 trial investigating semaglutide in the treatment of NASH meets primary endpoint Semaglutide NASH phase 2 trial design Semaglutide showed resolution of NASH with no worsening of fibrosis versus placebo in the trial 100% P=<.0001 Semagl
Slide 13: The semaglutide obesity STEP programme begins reporting results in the coming months
Investor presentation First three months 2020 Slide 13 The semaglutide obesity STEP programme begins reporting results in the coming months, starting with STEP 4 Phase 3 STEP programme 2019 2020 2021 Semaglutide 2.4 mg STEP 1: Weight management n=1,950 Placebo Duration: 68 weeks Semaglutide 1 mg STE
Slide 14: R&D milestones in 2020
Investor presentation First three months 2020 Slide Slide 14 14 R&D milestones in 2020 Clinical milestones1 Regulatory milestones1 Project Q1 2020 Q2 2020 Q3 2020 Q4 2020 Ozempic® CV label indication SUSTAIN FORTE – China submission Phase 3 results Xultophy® China submission Icodec Phase 2 resu
Slide 15: Financial results – First three months of 2020
Investor presentation First three months 2020 Slide Slide 15 15 Financial results – First three months of 2020 Change Change In DKK million 2020 2019 (reported) (CER) Sales 33,875 29,291 16% 14% Gross profit 28,489 24,559 8% Gross margin 84.1% 83.8% Sales and distribution costs 7,590 6,946 9% 7% Per
Slide 16: Financial outlook for 2020
Investor presentation First three months 2020 Slide Slide 16 16 Financial outlook for 2020 Expectations Expectations 6 May 2020 5 February 2020 Sales growth – at CER 3% to 6% 3% to 6% Sales growth - reported Around 1 percentage point higher Around 1 percentage point higher Operating profit growth –
Slide 17: Strategic aspirations for 2025 - Milestones expected for 2020
Investor presentation First three months 2020 Slide 17 Strategic aspirations for 2025 - Milestones expected for 2020 Diabetes: • Sema FORTE phase 3 results due Q4 2020 • Insulin icodec phase 3 initiation in the second half of Expansion of the US affordability offerings 2020 Obesity: Utilise solar en
Slide 18: Investor contact information
Investor presentation First three months 2020 Slide Slide 18 18 Investor contact information Share information Investor Relations contacts Novo Nordisk’s B shares are listed on the stock exchange in Novo Nordisk A/S Copenhagen under the symbol ‘NOVO B’. Its ADRs are listed on Investor Relations the
Slide 19: Appendix
Investor presentation First three months 2020 19 Appendix 1. Novo Nordisk corporate strategy 20 2. Diabetes 33 3. Obesity 51 4. Biopharm & Other serious chronic diseases 59 5. Regional information 72 6. Financials 104 7. Sustainability 113
Slide 20: Novo Nordisk corporate strategy
Diabetes care Obesity care Strengthen leadership by offering innovative medicines and driving patient outcomes Strengthen treatment options through market development and by offering innovative medicines and D rIvi NG driving patient cha nge to outcomes defeat diabetes and other serious chronic dise
Slide 21: Strategic aspirations 2025
Investor presentation First three months 2020 21 Strategic aspirations 2025 • Further raise the innovation-bar for diabetes treatment • Being respected for adding value to society • Develop a leading portfolio of superior treatment therapeutic focus solutions for obesity Innovation and • Progress to
Slide 22: Novo Nordisk's opportunity is in the large unmet needs across all therapy areas in scope
Investor presentation First three months 2020 22 Novo Nordisk’s opportunity is in the large unmet needs across all therapy areas in scope DIABETES OBESITY HAEMOPHILIA OTHER SERIOUS CHRONIC DISEASES ~650 million 80% of diagnosed NASH patients are obese ~463 million and 35% have T2DM 70% of diabetes ~
Slide 23: Novo Nordisk has leading positions in diabetes, obesity and haemophilia
Investor presentation First three months 2020 23 Novo Nordisk has leading positions in diabetes, obesity and haemophilia Diabetes care Obesity Haemophilia Market value Market value Market value DKK Novo Nordisk value market share DKK Novo Nordisk value market share DKK Novo Nordisk value market shar
Slide 24: Continued single digit volume growth within the insulin segments globally
Investor presentation First three months 2020 24 Continued single digit volume growth within the insulin segments globally Long-acting insulin Premix insulin Fast-acting insulin Segment volume Levemir® share Segment volume Ryzodeg® share Segment volume Fiasp® share Tresiba® share Combined NN NovoMix
Slide 25: Sales growth of 14% at CER, mainly driven by the diabetes care and obesity segments
Investor presentation First three months 2020 25 Sales growth of 14% at CER, mainly driven by the diabetes care and obesity segments Novo Nordisk reported quarterly sales Reported sales for the Growth breakdown for the First by therapy First three months 2020 three months 2020 Constant exchange rate
Slide 26: Sales growth of 14% at CER, driven by IO sales growth of 19% and 9% in NAO
Investor presentation First three months 2020 26 Sales growth of 14% at CER, driven by IO sales growth of 19% and 9% sales growth in NAO Reported sales for the first Reported sales and growth breakdown Historic sales by geography three months 2020 for the first months 2020 North America EMEA Region
Slide 27: Insulin sales remain important with 50% share of revenue
Investor presentation First three months 2020 27 Insulin sales remain important with 50% share of revenue but with less dependence on the US insulin sales Q1 2015 sales split Q1 2020 sales split 39% 31% 33% 53% 16% 28% IO insulin NAO insulin Other products
Slide 28: Novo Nordisk has a set of strategic aspirations with an innovation and therapeutic focus
Investor presentation First three months 2020 28 Novo Nordisk has a set of strategic aspirations with an innovation and therapeutic focus Further raise the innovation Develop a leading portfolio Strengthen and progress the Establish presence in Other bar for diabetes treatment of superior treatment
Slide 29: The future of R&D is to focus on increasing the number of clinical assets
Investor presentation First three months 2020 29 The future of R&D is to focus on increasing the number of clinical assets while maintaining industry-leading late-stage success R&D investments will expand Increased clinical assets Industry-leading success rate1 from beyond historic focus driving R&D
Slide 30: Pipeline supports significant growth opportunities across all four strategic focus areas
Investor presentation First three months 2020 30 Pipeline supports significant growth opportunities across all four strategic focus areas PHASE 1 PHASE 2 PHASE 3 SUBMITTED APPROVED NN1535 – Icosema (LAIsema) NN1436 – Icodec (LAI287) Semaglutide obesity Somapacitan – QW AGHD1 Tresiba® NN1965 – Insuli
Slide 31: Novo Nordisk holds solid patent protection, high barriers to entry, and a collaborative approach
Investor presentation First three months 2020 31 Novo Nordisk holds solid patent protection, high barriers to entry, and a collaborative approach to innovation Novo Nordisk’s position is protected Barriers to entry for biosimilar Partnerships support future R&D by patents and value chain setup playe
Slide 32: Novo Nordisk's core capabilities provide a competitive advantage
Investor presentation First three months 2020 32 Novo Nordisk’s core capabilities provide a competitive advantage to continue to defeat diabetes Engineering, Efficient large-scale Global commercial reach Deep disease formulating, developing production of proteins and leader in chronic understanding
Slide 33: Diabetes
33 1. Disease and market 34 2. Insulin segment 44 3. GLP-1 segment 45
Slide 34: Diabetes – the inability to manage blood sugar levels appropriately
Investor presentation First three months 2020 34 Diabetes – the inability to manage blood sugar levels appropriately Facts about diabetes Insulin action profiles Diabetes is a chronic disease that occurs either when the pancreas does not produce enough insulin or when the body cannot effectively use
Slide 35: GLP-1s have positive effects beyond glycaemic control
Investor presentation First three months 2020 35 GLP-1s have positive effects beyond glycaemic control and treatment guidelines now reflect the CV risk benefits Medications for treatment of type 2 diabetes ADA/EASD diabetes treatment guidelines for second- line treatment with established ASCVC or CK
Slide 36: People with diabetes have increased mortality risk
Investor presentation First three months 2020 36 People with diabetes have increased mortality risk with eight years shorter life expectancy, highlighting the importance of innovation Diabetes is associated with shorter life The unmet need remains large within diabetes expectancy and lower quality o
Slide 37: Global diabetes prevalence is increasing
Investor presentation First three months 2020 37 Global diabetes prevalence is increasing and 700 million people are expected to have diabetes by 2045 The number of people with diabetes is expected Of the 463 million, around 30 million1 people are currently to increase 51% by 2045 treated with Novo
Slide 38: Diabetes volume growth remains solid with 4% growth in a large USD 48 billion market
Slide 38 38 Diabetes volume growth remains solid with 4% growth in a large USD 48 billion diabetes market The number of treated patients1 is expected The diabetes realised value2 is expected to to grow by 4% annually towards 2025 grow by 4% annually towards 2025 Key trends in diabetes CAGR: +3% Inno
Slide 39: The total branded diabetes market has a global value of DKK ~293 billion annually
Investor presentation First three months 2020 39 The total branded diabetes market has a global value of DKK ~293 billion annually 2018/19 2019/20 Growth at CER +8% Global diabetes market DKK 4% The USA DKK billion billion 271 293 140 146 150 -8% +27% 250 100 62 57 -9% +14% 41 52 50 23 21 14 16 200
Slide 40: Novo Nordisk has a strong leadership position within the growing diabetes market
Investor presentation First three months 2020 40 Novo Nordisk has a strong leadership position within the growing diabetes market Novo Nordisk remains global diabetes Global diabetes market by treatment class value market leader DKK OAD GLP-1 Insulin Novo Nordisk Sanofi Eli Lilly Merck Takeda billio
Slide 41: Novo Nordisk has a broad portfolio of products to target all segments in diabetes
Investor presentation First three months 2020 41 Novo Nordisk has a broad portfolio of products to target all segments in diabetes Distribution of patients and value across Novo Nordisk is well positioned across the diabetes segments with treatment classes the only oral GLP-1 and an innovative injec
Slide 42: Diabetes market share and market growth
Investor presentation First three months 2020 42 Diabetes market share and market growth Diabetes market growth and Novo Nordisk market share Diabetes market size and growth 80% DKK billion ~14% 29 610 20 25 60% 535 40% 34% 20% 29% ~17% 20% 28.0% 28.7% 0% Feb Feb Feb Lilly Novo Others Feb 2017 2020
Slide 43: Novo Nordisk global insulin market leadership expanded to 46.5%
Investor presentation First three months 2020 43 Novo Nordisk global insulin market leadership expanded to 46.5% and the global insulin volume market grew by 1.6% Global Market growth: 1.6% International Operations MS: 46.5% North America Operations Market growth: 2.5% MS gain/loss1: +0.1%-p Market
Slide 44: Insulin market size and volume share of growth and market share
Investor presentation First three months 2020 44 Insulin market size and volume share of growth and market share Market Δ Market Insulin volume: Share of growth and Insulin market share and market size (DKK billion) growth share market share +0.6% 80% 10% Total 45% 266 5% 57% 8% 60% Basal 38% 131 7%
Slide 45: GLP-1 effect dependent on level of blood glucose
Investor presentation First three months 2020 45 GLP-1 effect dependent on level of blood glucose GLP-1 mechanism of action when blood Semaglutide holds a plethora of therapeutic sugar levels increase opportunities • Increases insulin secretion in the pancreas FOCUS - Diabetic retinopathy outcomes t
Slide 46: The global GLP-1 market has accelerated over time
Investor presentation First three months 2020 46 The global GLP-1 market has accelerated over time following a string of key events and Novo Nordisk has a best-in-class portfolio GLP-1 value and patient share of the total diabetes Novo Nordisk’s diabetes GLP-1 portfolio market Continued expansion in
Slide 47: GLP-1 sourcing is primarily from outside the class
Investor presentation First three months 2020 47 GLP-1 sourcing is primarily from outside the class but GLP-1s are still typically used after failure on other products Share of patients on OADs achieving GLP-1 source of business US ‘line of usage’ across product classes (new-to-brand prescription Hb
Slide 48: SUSTAIN trials with semaglutide
Investor presentation First three months 2020 48 SUSTAIN trials with semaglutide SUSTAIN 1 2 3 4 5 6 7 Baseline 8.1% 8.1% 8.3% 8.2% 8.4% 8.7% 8.2% 0.0 -0.1 -0.4 -0.5 Change in HbA1c (%) -0.9 -0.8 -1.1* -1.1 -1.3* -1.2* -1.4* -1.3 -1.5* -1.5* -1.4* -1.6* -1.6* -1.5* -1.6* -1.8* -1.8* 1.2 Baseline 92
Slide 49: PIONEER programme completed for oral semaglutide
Investor presentation First three months 2020 49 PIONEER programme completed for oral semaglutide and global trials showed consistent efficacy profile PIONEER 1 2 3 4 5 7 8 Baseline 8.0% 8.1% 8.3% 8.0% 8.0% 8.3% 8.2% -0.1 -0.1 -0.1 Change in -0.5 HbA1c (%) -0.6 -0.8 -0.8 -0.7 -0.9 -1.0 -1.1 -1.3 -1.
Slide 50: GLP-1 market share and market growth
Investor presentation First three months 2020 50 GLP-1 market share and market growth GLP-1 market growth and Novo Nordisk market share GLP-1 market size and growth 70% DKK billion ~42% 54.4% 16 116 50% 47% 18 0 43.1% 81 36.5% 30% ~49% 48.3% 46.1% 10% Feb Feb Feb Novo Lilly Others Feb 2017 2020 2019
Slide 51: Obesity
Slide 51 1. Obesity disease and market 52 2. Obesity market development 54 3. Innovation 55
Slide 52: People with obesity are at an increased risk of developing severe comorbidities
Investor presentation First three months 2020 52 People with obesity are at an increased risk of developing severe comorbidities that are life-threatening and costly for society Global healthcare cost related to obesity US obesity care market remains small Increased risk of type expected to increase
Slide 53: Saxenda addresses a global unmet need for medical weight management
Investor presentation First three months 2020 53 Saxenda® addresses a global unmet need for medical weight management Global obesity prevalence Saxenda® launched countries Reported Saxenda® sales for Q1 2020 DKK Saxenda® launched countries billion Growth at CER 2.0 30% Operations IO areas 1.5 30% 1.
Slide 54: Making obesity a healthcare priority requires stakeholder engagement
54 Making obesity a healthcare priority requires stakeholder engagement HCPs take action by referring or managing Addressing market development barriers obesity as any other chronic disease Stigma is socially unacceptable Patient demand and support 1 Reduce stigma and bias and engage Willingness to
Slide 55: Novo Nordisk obesity pipeline supports efforts to close the treatment gap
Investor presentation First three months 2020 55 Novo Nordisk obesity pipeline supports efforts to close the treatment gap Innovation curve Addressing the gap between today’s medication and bariatric surgery Body weight set-point and counter regulation % Launched 0 Normalised Saxenda® 5-10% Today’s
Slide 56: Semaglutide demonstrated unprecedented weight loss in a phase 2 obesity trial
Investor presentation First three months 2020 56 Semaglutide demonstrated unprecedented weight loss in a phase 2 obesity trial 16.2% weight reduction with the highest semaglutide dose in phase 2 obesity trial Key results and next steps Change in body • Participants in the highest dose arms continued
Slide 57: Promising phase 1 results for AM833 and the phase 2 trial is ongoing
57 Promising phase 1 results for AM833 and the phase 2 trial is ongoing Key points and next steps Weight loss for different doses of AM833 in phase 1 Amylin directly targets the central Change in body nervous system to reduce appetite weight (%) and body weight 3 AM833 is a long-acting human 0 amyli
Slide 58: Obesity market share and market growth
Investor presentation First three months 2020 58 Obesity market share and market growth Obesity market growth and Novo Nordisk market share Obesity market size and growth 80% 60% DKK billion 59% ~12% 60% 10 40% 9 1 -0.4 40% 20% ~30% 20% 12% 59% 51% 0% 0% Feb Feb Feb 2019 Saxenda® Others Feb 2020 201
Slide 59: Biopharm & Other serious chronic diseases
Slide 59 1. Haemophilia 61 2. Growth hormone 62 3. Biopharm innovation 64
Slide 60: Biopharm sustained growth outlook is supported by innovation and core capabilities
Investor presentation First three months 2020 60 Biopharm sustained growth outlook is supported by innovation and utilisation of core capabilities Internal and external innovation to drive Core capabilities within research and long-term growth development to drive long-term growth Bringing internal
Slide 61: Haemophilia is a rare disease with severe unmet medical needs
Investor presentation First three months 2020 61 Haemophilia is a rare disease with severe unmet medical needs and the market is highly competitive Low diagnosis and treatment rates within haemophilia Sales of recombinant haemophilia products Number of NovoSeven® NovoEight® Refixia®/Rebinyn® Haemoph
Slide 62: Biopharm sales growth of 16% driven by solid commercial execution
Investor presentation First three months 2020 62 Biopharm sales growth of 16% driven by solid commercial execution with key brands being NovoSeven® and Norditropin® NovoSeven® and Norditropin® Added sales in the haemophilia product portfolio account for 80% of Biopharm sales Other biopharm Norditrop
Slide 63: Solid commercial execution is driving 4% sales growth in 2019
Investor presentation First three months 2020 63 Solid commercial execution is driving 4% sales growth in 2019 Historic reported sales Norditropin® value leadership maintained Continue frequent launches with new for Norditropin® despite increasing competition indications and device upgrades DKK Nord
Slide 64: Innovation in haemophilia
Investor presentation First three months 2020 64 Scientific excellence ensures an innovative and competitive pipeline with therapeutic solutions for severe conditions More than 35 years of innovation Biopharm pipeline Current phases 2018 2019 2020 2021 Curative therapy Concizumab Phase 3a HA and HB1
Slide 65: Mim8 haemophilia A antibody
Investor presentation First three months 2020 65 Win with easy to use products, maximum weight loss and SUPPORT SOLUTIONS FOR PATIENTS Thrombin generation assay Thromboelastography Characteristics 400 HA plasma + FVIII 150 HA • Strong activity at site of bleeding Clot time, R-time (min) Thrombin Pea
Slide 66: Once-weekly somapacitan has entered phase 3 for GHD and is filed for AGHD
Investor presentation First three months 2020 66 Once-weekly, biodegradable somapacitan has entered phase 3 for GHD and is filed with the FDA and EMA for AGHD indication Somapacitan Phase 2 trial in GHD with 1-year efficacy and safety 16 * 11.5 Albumin binding 14 side chain securing 10.01 Growth hor
Slide 67: Novo Nordisk and bluebird bio join forces in next-generation genome editing
Investor presentation First three months 2020 67 Novo Nordisk and bluebird bio join forces in next-generation genome editing for children and adult patients with haemophilia A Potential curative bluebird bio/Novo Nordisk’s treatment in haemophilia A Gene Targeting megaTAL mRNA joint approach AAV + L
Slide 68: Other serious chronic diseases
68 1. The unmet needs 69 2. Non-alcoholic steatohepatitis (NASH) 70 3. Cardiovascular disease 71 NADIA SADI, Nadia lives with NASH Denmark
Slide 69: Novo Nordisk is expanding into other serious chronic diseases
Investor presentation First three months 2020 69 Novo Nordisk is expanding into other serious chronic diseases Serious chronic diseases are often associated with New therapeutic areas represent patient populations diabetes and obesity with high unmet medical needs • 70% of people with diabetes Estim
Slide 70: The collaboration with Gilead aims to bring therapies to people living with NASH
Investor presentation First three months 2020 70 The collaboration with Gilead aims to bring therapies to people living with NASH Gilead possess complementary Novo Nordisk and Gilead Semaglutide in NASH skillsets clinical collaboration Leader in hepatology and Semaglutide Firsocostat Cilofexor combi
Slide 71: Novo Nordisk is addressing the unmet need in CVD via internal and external innovation
Investor presentation First three months 2020 71 Novo Nordisk is addressing the significant unmet need in CVD via internal and external innovation Semaglutide paves the way for Unique PCSK9i Novo Nordisk and Staten entering CVD mimetic peptide approach exclusive option agreement LDL-cholesterol PCSK
Slide 72: Regional information
72 1. International Operations growth 73 Strictly confidential 2. International Operations at a glance 75 3. EMEA 80 4. Region China 85 5. ROW 89
Slide 73: Sales growth has historically been 4-6% but growth momentum has increased
Investor presentation First three months 2020 73 Sales growth has historically been 4-6% but growth momentum has increased driven by demographics and the Market Fit approach International Operations is diverse Historic growth has been in the Growth momentum has benefitted and covers 190 markets rang
Slide 74: The medium-term growth is expected to be 6-10% annually
Investor presentation First three months 2020 74 The medium-term growth is expected to be 6-10% annually driven by securing the base and three future growth enablers Sales have increased by 5% since 2013, while ILLUSTRATIVE Secure the sales base by leveraging biopharm and medium-term growth is expec
Slide 75: International Operations at a glance
Investor presentation First three months 2020 75 International Operations at a glance Diabetes market by value and Novo Diabetes trend Nordisk market share Novo Nordisk reported sales Population with diabetes NN Insulin MS NN GLP-1 MS DKK NN OAD MS Sales Million Diabetes growth rate First three mont
Slide 76: Diabetes market share and market growth in International Operations
Investor presentation First three months 2020 76 Diabetes market share and market growth in International Operations Diabetes market growth and Novo Nordisk market share Diabetes market size and growth 30% DKK billion 22% ~12% 10 166 20% 23% 149 4 3 12% 10% 12% ~12% 22.0% 22.1% 0% Feb Feb Feb Novo L
Slide 77: Insulin market size and volume share in International Operations
Investor presentation First three months 2020 77 Insulin market size and volume share of growth and market share in International Operations Insulin market share and market size (DKK billion) Market Δ Market Insulin volume: Share of growth and growth share1 market share +0.7% 100% 10% Total 48% 58 5
Slide 78: GLP-1 market share and market growth in International Operations
Investor presentation First three months 2020 78 GLP-1 market share and market growth in International Operations GLP-1 market growth and Novo Nordisk market share GLP-1 market size and growth 80% DKK billion ~34% 60% 2 51% 16 2 0 51% 12 40% 34% 34% ~34% 20% 51.2% 51.2% 0% Feb Feb Feb Novo Lilly Oth
Slide 79: Obesity market share and market growth in International Operations
Investor presentation First three months 2020 79 Obesity market share and market growth in International Operations Obesity market growth and Novo Nordisk market share Obesity market size and growth 50% 60% DKK 38% billion 40% ~12% 4 40% 3 0 30% -0.1 20% 20% 12% 10% ~35% 32% 39% 0% 0% Feb Feb Feb Sa
Slide 80: EMEA at a glance
Investor presentation First three months 2020 80 EMEA at a glance Diabetes market by value and Novo Diabetes trend Nordisk market share Novo Nordisk reported sales Population with diabetes NN Insulin MS NN GLP-1 MS Sales Diabetes growth rate NN OAD MS First three months 2020 Growth2 Million bDKK (mD
Slide 81: Diabetes market share and market growth in EMEA
Investor presentation First three months 2020 81 Diabetes market share and market growth in EMEA Diabetes market growth and Novo Nordisk market share Diabetes market size and growth 40% DKK 29% billion ~10% 27% 2 3 87 20% 79 2 10% 10% 0% ~10% 26.8% 27.0% -20% Feb Feb Feb Novo Lilly Others Feb 2017 2
Slide 82: Insulin market size and volume market share in EMEA
Investor presentation First three months 2020 82 Insulin market size and volume market share in EMEA Insulin market share and market size (DKK billion) Market Δ Market growth share1 Insulin volume: market share +0.9% 80% 10% Total 47% 37 3% 8% 60% 6% Basal 37% 18 6% +2.1% 47% 4% 40% 1% 2% Bolus 56%
Slide 83: GLP-1 market share and market growth in EMEA
Investor presentation First three months 2020 83 GLP-1 market share and market growth in EMEA GLP-1 market growth and Novo Nordisk market share GLP-1 market size and growth 80% DKK billion 53% ~32% 50% 2 50% 11 32% 1 0 9 20% 30% ~30% -10% 53.1% 54.1% -40% Feb Feb Feb Novo Lilly Others Feb 2017 2020
Slide 84: Obesity market share and market growth in EMEA
Investor presentation First three months 2020 84 Obesity market share and market growth in EMEA Obesity market growth and Novo Nordisk market share Obesity market size and growth 70% 50% 63% DKK 60% billion ~17% 50% 0.9 30% 0.8 0.1 40% 30% 17% ~28% 10% 20% 63% 10% 57% 0% -10% Feb Feb Feb Saxenda® Ot
Slide 85: Region China at a glance
Investor presentation First three months 2020 85 Region China at a glance Diabetes market by value and Novo Diabetes trend in population Nordisk market share Novo Nordisk reported sales Population with diabetes NN Insulin MS NN GLP-1 MS Sales Diabetes growth rate NN OAD MS First three months 2020 Gr
Slide 86: Diabetes market share and market growth in Region China
Investor presentation First three months 2020 86 Diabetes market share and market growth in Region China Diabetes market growth and Novo Nordisk market share Diabetes market size and growth 40% DKK billion ~20% 30% 27% 2 21 1 0 17 22% 20% 20% 10% 16% ~16% 28.2% 27.2% 0% Feb Feb Feb Novo Hangzhou Oth
Slide 87: Insulin market size and volume share in Region China
Investor presentation First three months 2020 87 Insulin market size and volume share of growth and market share in Region China Insulin market share and market size (DKK billion) Market Δ Market Insulin volume: Share of growth and growth share1 market share -0.9% 80% 50% Total 47% 10 15% 15% 40% 60
Slide 88: GLP-1 market share and market growth in Region China
Investor presentation First three months 2020 88 GLP-1 market share and market growth in Region China GLP-1 market growth and Novo Nordisk market share GLP-1 market size and growth DKK 160% billion ~81% 120% 0.2 0.0 0.5 93% 0.0 80% 89% 0.3 ~90% 93.4% 40% 89.2% 0% Feb Feb Feb Novo Lilly Others Feb 20
Slide 89: Rest of the world at a glance
Investor presentation First three months 2020 89 Rest of the world at a glance Diabetes market by value and Novo Diabetes trend Nordisk market share Novo Nordisk reported sales Population with diabetes NN Insulin MS NN GLP-1 MS Sales Diabetes growth rate NN OAD MS First three months 2020 Growth2 Mil
Slide 90: Diabetes market share and market growth in Rest of World
Investor presentation First three months 2020 90 Diabetes market share and market growth in Rest of World Diabetes market growth and Novo Nordisk market share Diabetes market size and growth 20% DKK 16% billion ~12% 4 59 10% 13% 52 1 1 0% ~16% 12.6% 13.0% -10% Feb Feb Feb Novo Boehringer Others Feb
Slide 91: Insulin market size and volume market share in Rest of World
Investor presentation First three months 2020 91 Insulin market size and volume market share in Rest of World Insulin market share and market size (DKK billion) Market Δ Market growth share1 Insulin volume: market share +1.4% 80% 20% Total 47% 10 8% 15% 60% 57% 15% Basal 4 7% +0.8% 40% 10% 80% Bolus
Slide 92: GLP-1 market share and market growth in Rest of World
Investor presentation First three months 2020 92 GLP-1 market share and market growth in Rest of World GLP-1 market growth and Novo Nordisk market share GLP-1 market size and growth 80% DKK billion 60% ~37% 0.6 3.8 45% 40% 0.5 -0.1 2.8 42% 20% 0% ~42% 40.4% 38.8% -20% Feb Feb Feb Novo Lilly Others F
Slide 93: Obesity market share and market growth in Rest of World
Investor presentation First three months 2020 93 Obesity market share and market growth in Rest of World Obesity market growth and Novo Nordisk market share Obesity market size and growth 40% 30% DKK 31% billion 20% ~10% 2.9 2.7 0.3 10% 20% 10% 0% ~40% 24% 31% 0% -10% Feb Feb Feb Saxenda® Others Feb
Slide 94: US growth drivers, healthcare system, North America Operations
SLIDE 94 1. US growth drivers 95 2. US healthcare system 96 3. North America Operations at a glance 98
Slide 95: Innovation drives the largest transition in the history of Novo Nordisk USA
Investor presentation First three months 2020 95 Innovation drives the largest transition in the history of Novo Nordisk USA, turning around 70% of sales in just seven years Directional growth drivers and catalysts Relative sales composition GLP-1 Obesity Insulin Biopharm ILLUSTRATIVE 100% • Ozempic
Slide 96: US health insurance is dominated by few large commercial payers
Investor presentation First three months 2020 96 US health insurance is dominated by few large commercial payers with slow expansion of public insurance coverage The US population by health insurance status expected In 2018, PBMs covered 288 million lives and the market to remain stable in coming ye
Slide 97: The US healthcare system is complex and rebates paid have increased
Investor presentation First three months 2020 97 The US healthcare system is complex and rebates paid by Novo Nordisk have increased significantly in recent years Illustrative example of the Development of Novo Nordisk rebates US healthcare system and net sales in the USA US net sales US rebates Pro
Slide 98: North America Operations at a glance
Investor presentation First three months 2020 98 North America Operations at a glance Diabetes market by value and Novo Diabetes trend in population Nordisk market share Novo Nordisk reported sales Population with diabetes NN Insulin MS NN GLP-1 MS Diabetes growth rate DKK NN OAD MS First three mont
Slide 99: Diabetes market share and market growth in North America Operations
Investor presentation First three months 2020 99 Diabetes market share and market growth in North America Operations Diabetes market growth and Novo Nordisk market share Diabetes market size and growth 50% DKK billion 40% 37% ~15% 17 19 444 31% 386 21 30% 20% 10% ~18% 30.4% 31.2% 0% Feb Feb Feb Novo
Slide 100: Novo Nordisk volume market shares in the three insulin segments
Investor presentation First three months 2020 100 Novo Nordisk volume market shares in the three insulin segments USA long-acting insulin USA premix insulin USA fast-acting insulin Segment volume Levemir® share Segment volume Segment volume Fiasp® share Tresiba® share Combined NN NovoLog® Mix 70/30
Slide 101: Insulin market size and volume market share in North America Operations
Investor presentation First three months 2020 101 Insulin market size and volume market share in North America Operations Insulin market share and market size (DKK billion) Market Δ Market growth share1 Insulin volume: market share +0.5% 60% 10% Total 44% 209 5% 8% 40% 6% Basal 39% 105 7% +0.9% 40%
Slide 102: GLP-1 market share and market growth in North America Operations
Investor presentation First three months 2020 102 GLP-1 market share and market growth in North America Operations GLP-1 market growth and Novo Nordisk market share GLP-1 market size and growth 70% DKK billion 54% ~45% 14 100 50% 47% 16 0 44% 70 30% ~50% 47.8% 45.2% 10% Feb Feb Feb Novo Lilly Others
Slide 103: Obesity market share and market growth in North America Operations
Investor presentation First three months 2020 103 Obesity market share and market growth in North America Operations Obesity market growth and Novo Nordisk market share Obesity market size and growth 80% 200% 72% DKK billion 154% 160% ~12% 60% 6 120% 6 1 -0.3 40% 80% ~29% 20% 72% 40% 62% 12% 0% 0% F
Slide 104: Financials
Slide 104 SLIDE 104 Novo Nordisk current growth outperforms competition in all modern insulin segments in China 1. Profit and loss, capital allocation 105 2. Currencies 110 3. Ownership structure 112
Slide 105: Solid sales growth driven by diabetes and obesity
Investor presentation First three months 2020 105 Solid sales growth driven by diabetes and obesity Reported annual sales 2015-2019 Financial focus DKK billion Diabetes and obesity care CAGR1 2.5% Biopharm Rx Focus on driving solid sales growth 120 16% 100 17% 16% Gross margin to remain broadly stab
Slide 106: Solid operating profit growth driven by diabetes
Investor presentation First three months 2020 106 Solid operating profit growth driven by diabetes Operating profit Operating profit split per franchise DKK Operating profit Operating profit as % of sales Diabetes and obesity care Biopharm billion Reported operating profit growth 60 Operating profit
Slide 107: Higher profitability in the biopharmaceuticals segment driven by lower S&D costs
Investor presentation First three months 2020 107 Higher profitability in the biopharmaceuticals segment driven by lower S&D costs Diabetes & Obesity care P&L – full year 2019 Biopharm P&L – full year 2019 DKK DKK billion Sales ratios billion Sales ratios -16% -20% 120 20 100 -28% -16% 15 -11% 80 -1
Slide 108: Stable COGS level as percentage of sales and decreasing CAPEX level
Investor presentation First three months 2020 108 Stable COGS level as percentage of sales and decreasing CAPEX level Cost of goods sold Capital expenditure DKK COGS DKK CAPEX Expected CAPEX billion billion COGS as % of sales (RHS) CAPEX as % of sales (RHS) 20 25% 12 10% 10 8% 20% 15 8 15% 6% 10 6 1
Slide 109: Cash return to shareholders in 2020
Investor presentation First three months 2020 109 Cash return to shareholders in 2020 Annual cash return to shareholders Cash return priorities Share Interim dividend Dividend • Share repurchase programme of up to DKK 17 billion to be DKK repurchase executed during 12 months, starting 5 February 202
Slide 110: Currency impact on Novo Nordisk's P/L
Investor presentation First three months 2020 110 EXAMPLE Currency impact on Novo Nordisk’s P/L Operational currency impact Financial currency impact • All movements in currencies will directly • All gain/losses from hedging contracts are impact the individual reported functional lines included in t
Slide 111: Favourable currency impact on operating profit in first quarter of 2020
Investor presentation First three months 2020 111 Favourable currency impact on operating profit in first quarter of 2020 driven by hedged currencies Avg. Q1 2020 vs. Q1 2019 Exp. avg. FY 20201 vs. FY 2019 Hedged Q1 2019 Q1 2020 Impact of a Hedging currencies avg. avg. Spot rate3 5% move4 (months) 5
Slide 112: Stable ownership structure
Investor presentation First three months 2020 112 Stable ownership structure - secured through A and B-share structure Share structure The Novo Nordisk Foundation • The Novo Nordisk Foundation is a self-governing institution Novo Nordisk Foundation that Institutional and private • provides a stable
Slide 113: Sustainability
113 Sustainability 1. Sustainable business 114 2. Social responsibility 115 3. Environmental responsibility 120
Slide 114: Delivering on our purpose
Investor presentation First three months 2020 114 Delivering on our purpose Novo Nordisk is committed to be a sustainable business that adds value to society By sustainable business, we mean Guided by the Novo Nordisk Way Integrating sustainability into every The Novo Nordisk Way guides how we aspec
Slide 115: Social responsibility is core to Novo Nordisk
Investor presentation First three months 2020 115 Social responsibility is core to Novo Nordisk and initiatives focus on prevention, access and innovation Support prevention by Ensuring access by making Develop new and innovative building capacity in health Novo Nordisk medicines treatments until di
Slide 116: Enhancing access to affordable medicines is a key priority
Investor presentation First three months 2020 116 Enhancing access to affordable medicines is a key priority Product quality and patient safety is material Access to insulin commitment expanded 30.0 million 2.2 million Novo Nordisk guarantees to make low-priced human insulin patients reached people
Slide 117: Novo Nordisk offers affordability programmes to increase support to patients
Investor presentation First three months 2020 117 Novo Nordisk offers affordability programmes to increase support to patients inside and outside the system Increase support for patients inside the Expand support for patients outside insurance system the system Supporting Affordable Patient Access P
Slide 118: Cities Changing Diabetes aims to break the 'Rule of Halves'
Investor presentation First three months 2020 118 Cities Changing Diabetes aims to break the ‘Rule of Halves’ by tackling urban diabetes Global partnership platform to develop At present 25 partner cities an approach to fight urban diabetes with more than 150 million citizens Founding partners • Map
Slide 119: Novo Nordisk offers a healthy, engaging and inclusive workplace
Investor presentation First three months 2020 119 Novo Nordisk offers a healthy, engaging and inclusive workplace with development opportunities for employees Employee health, safety and engagement Novo Nordisk is committed to building are key focus areas for management a diverse and inclusive cultu
Slide 120: Zero negative environmental impact through Circular for Zero strategy
Investor presentation First three months 2020 120 Novo Nordisk has set a bold ambition to have zero negative environmental impact, executed through Circular for Zero strategy Focus on circular principles related to Progress towards 2030 target of zero emissions from waste, resource use and emissions