Novo Nordisk A/s Class B · OMXCOP:NOVO_B
Novo Nordisk A/s Class B — Non-Deal Roadshow (May 2010)
44 slides from Novo Nordisk A/s Class B's roadshow presentation, May 7, 2010
Slide 1: Triple Bottom Line performance
May 2010 Triple Bottom Line performance Lise Kingo EVP Corporate Relations
Slide 2: Forward-looking statements
May 2010 Slide no 2 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 2009 and Form 20-F, both filed with the SEC in February 2010, and written information relea
Slide 3: The Triple Bottom Line principle
May 2010 Slide no 3 The Triple Bottom Line principle Financially responsible Articles of Association Competitive financial performance The company seeks to conduct its business in a financially, environmentally and socially responsible way. Patients Novo Nordisk is a signatory to the United Nations
Slide 4: Novo Nordisk's current TBL agenda
May 2010 Slide no 4 Novo Nordisk’s current TBL agenda Level of Occupational health & safety integration Environmental management Strategy revisited Bioethics Access to health Diversity Full business integration globally Responsible sourcing Employee wellness Embedding in the organisation (1-3) Clima
Slide 5: Social responsibility and sound business
May 2010 Slide no 5 Social responsibility and sound business
Slide 6: Insulin leadership position in all regions
May 2010 Slide no 6 Insulin leadership position in all regions Global diabetes pandemic driven by International Operations North America Europe Market share 43% Market share 54% People with diabetes: People with diabetes: 2010: 30 mill. 2010: 35 mill. 2030: 41 mill. Japan & Korea 2030: 40 mill. Mark
Slide 7: The global diabetes burden
May 2010 Slide no 7 The global diabetes burden A time bomb that must be managed Million people with diabetes Estimated costs of diabetes 2010 2030 400 • Global diabetes healthcare costs 350 increase: million people with diabetes 300 Worldwide: • 2010: 376 billion USD 250 2010: 285 million • 2030: 49
Slide 8: Changing Diabetes - our response to the global challenge
May 2010 Slide no 8 Changing Diabetes® - our response to the global challenge
Slide 9: A promise and a business proposition
May 2010 Slide no 9 A promise and a business proposition Health outcome, market access and growth
Slide 10: Changing Diabetes through facts
May 2010 Slide no 10 Changing Diabetes through facts
Slide 11: Engaging key stakeholders in change
May 2010 Slide no 11 Engaging key stakeholders in change Since 2005, Novo Nordisk has engaged … more than 5,000 key stakeholders and policy-makers … in 25 Changing Diabetes® Leadership Forums and regional or national roundtables … in 15 countries … … reaching consensus for what it will take to chang
Slide 12: Two cases: Winning market leadership in US and China
May 2010 Slide no 12 Two cases: Winning market leadership in US and China
Slide 13: Changing diabetes in the US
May 2010 Slide no 13 Changing diabetes in the US
Slide 14: Projected diabetes prevalence in the US
May 2010 Slide no 14 Projected diabetes prevalence in the US 2009-2034 50 45 40 35 Millions of People 30 25 20 15 10 Newly Diagnosed 5 Established cases Undiagnosed 0 33 27 29 31 15 17 19 21 23 25 09 11 13 20 20 20 20 20 20 20 20 20 20 20 20 20 Source: Huang et al, Projecting the Future Diabetes Pop
Slide 15: US obesity rates
May 2010 Slide no 15 US obesity rates Rapid growth drives diabetes epidemic 1988 2008 No Data <10% 10%–14% 15%–19% 20%–24% 25%–29% ≥30% Source: US Centers for Disease Control
Slide 16: Novo Nordisk US 2008-2009 growth
May 2010 Slide no 16 Novo Nordisk US 2008-2009 growth - industry-leading performance 23% 20% 17% Novo Nordisk Inc 13% 12% 10% 9% 9% 7% 4% 5% 0% -0.2% Roche/Genentech Takeda Sanofi-Aventis Pfizer/Wyeth BMS Novartis Boehringer Ingelheim AstraZeneca Teva Avg. Pharmaceutical Eli Lilly Abbott -6%-6% Merc
Slide 17: Significant potential on the US modern insulin market
May 2010 Slide no 17 Still a significant potential for Novo Nordisk on the US modern insulin market US insulin market by segments US modern insulin market shares Modern insulin penetration Novo Nordisk Sanofi-Aventis Eli Lilly tMU Penetration 30 80% 60% CAGR volume: 5.8% CAGR value*: 17.8% 70% 25 50
Slide 18: Novo Nordisk US – Key facts
May 2010 Slide no 18 Novo Nordisk US – Key facts • Almost 4,000 employees • Sales offices in Princeton, NJ • >500% increase in field presence in last decade • Production site, Clayton, NC • Inflammation research centre, Seattle • #25 on Fortune 100 Best Companies to Work For 2010 (up from #57 in 200
Slide 19: Driving change
May 2010 Slide no 19 Driving change • Medical education, scholarships • Patient-centered care • Patient education tools and support • Patient assistance programme • Medicare Diabetes Screening Project (MDSP) • National coalition of 20+ organisations co-chaired by the American Diabetes Association, H
Slide 20: Changing the way policy makers think about diabetes
March May 2010 Slide no 20 Changing the way policy makers think about diabetes • Advocated on overall health care legislation and four diabetes bills, parts of which are in either the House or Senate bills: • Bill 1: key provision: promote Medicare and CDC collaboration to find the more than 70% of
Slide 21: Changing Diabetes in China
May 2010 Slide no 21 Changing Diabetes in China
Slide 22: Stable leadership position on the Chinese insulin market
May 2010 Slide no 22 Stable leadership position on the rapidly growing Chinese insulin market China insulin market by segments China insulin market shares Modern insulin penetration Novo Nordisk Sanofi-Aventis Eli Lilly tMU Penetration Shanghai Fosun Tonghua Dongbao 5 70% 70% CAGR volume: 23.0% CAGR
Slide 23: Sustaining market leadership in China
May 2010 Slide no 23 Sustaining market leadership in China • Novo Nordisk China established in 1994 • >2,500 employees, half of whom in sales • Regional offices in 6 cities • Presence in all provinces • 1997/2005/2006: Production plant in Tianjin • 2.4 billion DKK investment • 500 new employees • 20
Slide 24: 15 years of improving lives of people with diabetes in China
May 2010 Slide no 24 15 years of improving lives of people with diabetes in China • Educated more than 200,000 healthcare professionals • Novo Nordisk Foundation funds Steno Application of Resources (STAR) Programme, run in cooperation with Ministry of Health. • Novo Nordisk Diabetes Executive Manag
Slide 25: It is all about people
May 2010 Slide no 25 It is all about people • Retention rate of 85% • MBA programme at Peking University • Talent programme • Training programmes • E-learning • Mentoring programme • Total reward communication • Employer branding • NovoHealth promotion
Slide 26: A business case for climate action
May 2010 Slide no 26 A business case for climate action: Profitability and societal value
Slide 27: Carbon reduction target surpassed – with documented ROI
May 2010 Slide no 27 Carbon reduction target surpassed – with documented ROI sales development • 100 million DKK invested CO2 emissions development Index (2004=100) 2014 CO2 emissions target 120 million DKK saved 200 future cost savings of approx 32 million DKK annually 175 150 • >200 energy-saving
Slide 28: Partnerships drive innovation
May 2010 Slide no 28 Partnerships drive innovation
Slide 29: Next-generation strategy links climate and health
May 2010 Slide no 29 Next-generation strategy focuses on links between climate and health Mitigation Adaptation • Continued focus on • Promotion of healthy energy efficiency across lifestyles the organisation • leverage the link • ambitious long-term between diabetes target prevention and low-carbon
Slide 30: Sustainability update
May 2010 Slide no 30 Sustainability update
Slide 31: Social performance in 2009 – Patient focus
May 2010 Slide no 31 Social performance in 2009 – Patient focus Changing diabetes® for better outcomes • Access to diabetes care • Best possible pricing scheme in the world’s 49 poorest countries; insulin sold at reduced prices in 36 of these • Driving health outcomes • Changing Diabetes® Barometer
Slide 32: Changing Diabetes in children
May 2010 Slide no 32 Changing Diabetes in children Programme rolled out in 6 countries: Bangladesh Cameroon Guinea Mozambique Tanzania Uganda Children in scope 2009: 400 children Children enrolled to date: 436 children Ambition: 10,000 children enrolled in programme
Slide 33: Changing Diabetes during pregnancy
May 2010 Slide no 33 Changing Diabetes during pregnancy To defeat diabetes, we must start with the next generation Foetal programming puts children at higher risk of type 2 diabetes later in life due to over- and under-nourishment Each year 10 million women get gestational diabetes Millions of women
Slide 34: Social performance in 2009 – People
May 2010 Slide no 34 Social performance in 2009 – People An attractive and healthy place to work 2007 2008 2009 Engaging culture Employee engagement (scale 1-5) 4.1 4.2 4.3 Employee turnover (%) 11.6 12.1 8.3 Diversity Diverse senior management teams - 12 14 Health & safety Frequency of occupational
Slide 35: Diversity strategy prepares the organisation for future growth
May 2010 Slide no 35 Diversity strategy prepares the organisation for future growth
Slide 36: Global standards for responsible practices across the value chain
May 2010 Slide no 36 Global standards for responsible practices across the value chain • Responsible sourcing • Business ethics • Bioethics • Environmental management • OH&S • Quality mindset
Slide 37: Business ethics
May 2010 Slide no 37 Business ethics Policy and approach • Part of Novo Nordisk Way of Management and Quality system • Global standards • Workshops and e-learning • 91% of all managers trained via e-learning • 99% of all first-line sales managers participated in face-to-face training • Business Ethi
Slide 38: Responsible sourcing focuses on continuous improvement
May 2010 Slide no 38 Responsible sourcing focuses on continuous improvement how do we what is engage the risk? suppliers? how do we measure progress?
Slide 39: Managing risks in the supply chain
May 2010 Slide no 39 Managing risks in the supply chain Risk assessment criteria: • Where was the Materials for production 34 high risk suppliers out of a total product made? 381 • Are there any sector- specific or category risks? • Is there a connection between the product and our brand? • Do we ha
Slide 40: Responsible sourcing
May 2010 Slide no 40 Responsible sourcing An example of our approach to continuous improvement The challenge Our response • Annual sourcing spend: • Risk mitigation to protect 16.9 billion DKK and enhance business value • One third of total sales • Global standards for responsible sourcing • Global
Slide 41: Pursuing innovation leadership
May 2010 Slide no 41 Financial Pursuing innovation leadership
Slide 42: Making the value case: 'Blueprints' for change
May 2010 Slide no 42 Making the value case: ‘Blueprints’ for change • Measuring value creation - for the business and for society • Market performance US, China Tanzania, Bangla Desh • Access to diabetes care Achievements 2001-2009 Impact of flagship programmes • Climate action Achievements 2005-200
Slide 43: Accounting for performance
May 2010 Slide no 43 Accounting for performance
Slide 44: Investor information
May 2010 Slide no 44 Investor information Share information Investor Relations Novo Nordisk’s B shares are listed contacts on the stock exchange in Novo Nordisk A/S Investor Relations Copenhagen. Its ADRs are listed on Novo Allé, DK-2880 Bagsværd the New York Stock Exchange under Fax (+45) 4444 6626