Novo Nordisk A/s Class B · OMXCOP:NOVO_B
Novo Nordisk A/s Class B — H1 2013 Earnings Presentation
115 slides from Novo Nordisk A/s Class B's earnings presentation, August 2013
Slide 1: Investor presentation First six months of 2013
Slide 1 Investor presentation First six months of 2013
Slide 2: Content
Investor Presentation First six months of 2013 Slide 2 Content Highlights and key events Sales update R&D update Financials and outlook
Slide 3: Forward-looking statements
Investor Presentation First six months of 2013 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 2012 and Form 20-F, both filed with the SEC in February
Slide 4: Highlights – first six months of 2013
HIGHLIGHTS AND KEY EVENTS Investor Presentation First six months of 2013 Slide 4 Highlights – first six months of 2013 Sales development • Sales increased by 14% in local currencies and 11% in Danish kroner: • North America and International Operations grew by 23% and 17% in local currencies, respec
Slide 5: North America is the main contributor to growth
SALES UPDATE Investor Presentation First six months of 2013 Slide 5 North America is the main contributor to growth Sales as reported – first six months of 2013 Growth analysis – first six months of 2013 Japan & Korea Local currencies Growth Share of growth Region China (19%) North America 23% 70% +
Slide 6: Growth is driven by modern insulin and Victoza
SALES UPDATE Investor Presentation First six months of 2013 Slide 6 Growth is driven by modern insulin and Victoza® Sales as reported – first six months of 2013 Growth analysis – first six months of 2013 Other Local currencies Growth Share of growth Norditropin® +15% Modern insulin 15% 50% +8% 3% 7%
Slide 7: Modern insulin and Victoza constitute 75% of diabetes care sales
SALES UPDATE Investor Presentation First six months of 2013 Slide 7 Modern insulin and Victoza® constitute 75% of diabetes care sales Diabetes care sales as reported – first six months of 2013 MAT diabetes care sales development Protein related DKK Modern insulin Human insulin Victoza® (0%) billion
Slide 8: Novo Nordisk continues to expand leadership position within diabetes care
SALES UPDATE Investor Presentation First six months of 2013 Slide 8 Novo Nordisk continues to expand leadership position within diabetes care 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 No
Slide 9: Strong underlying insulin market growth and steady market share development
SALES UPDATE Investor Presentation First six months of 2013 Slide 9 Strong underlying insulin market growth and steady market share development Global insulin market Global modern insulin volume market shares Device penetration Modern Insulin penetration Novo Nordisk Sanofi Eli Lilly tMU Penetration
Slide 10: Novo Nordisk modern insulins gains market share in all insulin segments in the US
SALES UPDATE Investor Presentation First six months of 2013 Slide 10 Novo Nordisk modern insulins gains market share in all insulin segments in the US US long-acting insulin US rapid-acting insulin US premixed insulin Segment volume Segment volume Segment volume Levemir® market share NovoLog® market
Slide 11: Continued growth of Victoza - driven by North America and Europe
SALES UPDATE Investor Presentation First six months of 2013 Slide 11 Continued growth of Victoza® - driven by North America and Europe Victoza® regional sales split Victoza® reported sales (MAT) – First six months of 2013 DKK billion Japan & Region China 12 10.8 Korea 1% 10.2 International 10 9.5 Op
Slide 12: Continued expansion of the US GLP-1 market
DIABETES Investor Presentation First six months of 2013 Slide 12 Continued expansion of the US GLP-1 market Key observations for Victoza® US GLP-1 market in the US market GLP-1 TRx scripts GLP-1 % of diabetes care market • Victoza® market share within the GLP-1 segment is close to (thousands) 65%1 U
Slide 13: Victoza continues to expand the GLP-1 class in key European markets
SALES UPDATE Investor Presentation First six months of 2013 Slide 13 Victoza® continues to expand the GLP-1 class in key European markets Development in key European markets following Victoza® launch Victoza® Exenatide Lixisenatide Germany UK France Market value1: DKK 12 billion Market value1: DKK 6
Slide 14: Tresiba now launched in UK, Denmark, Japan, Mexico and Switzerland
SALES UPDATE Investor Presentation First six months of 2013 Slide 14 Tresiba® now launched in UK, Denmark, Japan, Mexico and Switzerland Tresiba® launch highlights Country Launch date Market access Market value1 Submission of formulary applications UK 28 Jan 2013 DKK 1.3 billion on-going2 Denmark 4
Slide 15: Update on Tresiba launch performance
SALES UPDATE Investor Presentation First six months of 2013 Slide 15 Update on Tresiba® launch performance Tresiba® launch in Japan, Basal insulin value market share in Japan key observations1 Novo Nordisk Tresiba® Levemir® NPH • 73% of target accounts opened glargine • Above 6,000 doctors are estim
Slide 16: Regulatory update for Tresiba and Ryzodeg
R&D UPDATE Investor Presentation First six months of 2013 Slide 16 Regulatory update for Tresiba® and Ryzodeg® Submitted1 Approved Launched5 US2 Malaysia Canada2 Philippines South Africa Bangladesh Japan EU Australia Indonesia UK Brazil Norway Kazakhstan Denmark Russia Iceland Chile Mexico Argentina
Slide 17: Outline of Tresiba cardiovascular outcomes trial
R&D UPDATE Investor Presentation First six months of 2013 Slide 17 Outline of Tresiba® cardiovascular outcomes trial Illustration of FDA criteria for evaluating Characteristics of CV outcomes trial cardiovascular risk in Type 2 Diabetes1 Design and requirements: 1.3 ruled out at 1.8 ruled out at • T
Slide 18: Liraglutide 3 mg phase 3a programme completed
R&D UPDATE Investor Presentation First six months of 2013 Slide 18 Liraglutide 3 mg phase 3a programme completed - submission expected around the turn of the year Trial Arms Duration Status • Liraglutide 3 mg (n=210) 56 weeks + 12 Completed in SCALETM-Maintenance • Placebo (n=210) weeks follow-up Q3
Slide 19: People with obesity achieved 8% weight loss with liraglutide 3 mg in SCALE-obesity
R&D UPDATE Investor Presentation First six months of 2013 Slide 19 People with obesity achieved 8% weight loss with liraglutide 3 mg in SCALETM-obesity trial SCALETM-obesity (NN8022-1839) trial design Headline results 56 weeks 3,731 people with obesity1: With and without pre- Placebo Liraglutide dia
Slide 20: FIAsp completes phase 1 pump study in people with type 1 diabetes
R&D UPDATE Investor Presentation First six months of 2013 Slide 20 FIAsp completes phase 1 pump study in people with type 1 diabetes Key results of NN1218-3930 phase 1 trial Incremental Meal-test Glucose Profiles in 42 people with type 1 diabetes FIAsp NovoRapid® • Exploratory double blinded cross o
Slide 21: Positive results from phase 3 trial with long-acting factor IX
R&D UPDATE Investor Presentation First six months of 2013 Slide 21 Positive results from phase 3 trial with long-acting factor IX for treatment of haemophilia B ParadigmTM 2 (NN7999 - 3747) trial design Headline results 74 patients with haemophilia B: • Median bleeding rate for patients treated on d
Slide 22: Other key events within Research and Development
R&D UPDATE Investor Presentation First six months of 2013 Slide 22 Other key events within Research and Development Diabetes care • Global 26-week phase 3 trial comparing Tresiba® and insulin glargine initiated in June 2013; includes patients from China and expected to provide the basis for a regula
Slide 23: Financial results – first six months of 2013
FINANCIALS AND OUTLOOK Investor Presentation First six months of 2013 Slide 23 Financial results – first six months of 2013 DKK million H1 2013 H1 2012 Change Sales 41,363 37,219 11% Gross profit 34,148 30,392 12% Gross margin 82.6% 81.7% Sales and distribution costs 11,364 10,053 13% Percentage of
Slide 24: Current rates for US dollar and Japanese Yen are below 2012 average
FINANCIALS AND OUTLOOK Investor Presentation First six months of 2013 Slide 24 Current rates for US dollar and Japanese Yen are below 2012 average 650 Spot rates Quarterly average Annual average Currency 2012 2013 Current assumptions1 average average2 rate2 600 USD/DKK USD 579 568 562 550 JPY 7.27 5
Slide 25: Financial outlook for 2013
FINANCIALS AND OUTLOOK Investor Presentation First six months of 2013 Slide 25 Financial outlook for 2013 Expectations Previous expectations 8 August 2013 1 May 2013 Sales growth - local currencies 11-13% 9-11% Sales growth - reported Around 4 percentage points lower Around 3 percentage points lower
Slide 26: Closing remarks
FINANCIALS AND OUTLOOK Investor Presentation First six months of 2013 Slide 26 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 • 27% market share in
Slide 27: Investor contact information
FINANCIALS AND OUTLOOK Investor Presentation First six months of 2013 Slide 27 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
Slide 28: Appendix
Investor Presentation First six months of 2013 Slide 28 Appendix 1. Novo Nordisk at a glance 2. Diabetes 3. Biopharmaceuticals 4. Financials
Slide 29: Novo Nordisk at a glance
NOVO NORDISK AT A GLANCE Investor Presentation First six months of 2013 Slide 29 Novo Nordisk at a glance The core equity story Global leader in diabetes care • A focused pharmaceutical company with leading positions Global insulin market share: 49% in diabetes, haemophilia and hGH Europe: • Double
Slide 30: Novo Nordisk's strategy: five strategic focus areas
NOVO NORDISK AT A GLANCE Investor Presentation First six months of 2013 Slide 30 Novo Nordisk’s strategy: five strategic focus areas Strategic focus areas Core capabilities Engineering, Deep Efficient Planning Building formulating, disease large-scale Expand and leadership and developing under- prod
Slide 31: Novo Nordisk has leading positions in diabetes, haemophilia and growth disorders
NOVO NORDISK AT A GLANCE Investor Presentation First six months of 2013 Slide 31 Novo Nordisk has leading positions in diabetes, haemophilia and growth disorders Growth hormone Diabetes Haemophilia deficiency DKK Market value DKK Market value DKK Market value billion Novo Nordisk market share billio
Slide 32: Double digit top line growth driven by diabetes pandemic
NOVO NORDISK AT A GLANCE Investor Presentation First six months of 2013 Slide 32 Double digit top line growth driven by diabetes pandemic Novo Nordisk reported quarterly sales The number of people with diabetes by therapy according to IDF Diabetes care Haemophilia Growth Disorders Other North Americ
Slide 33: Novo Nordisk continues to expand leadership position within diabetes care
SALES UPDATE Investor Presentation First six months of 2013 Slide 33 Novo Nordisk continues to expand leadership position within diabetes care Global diabetes care market Global diabetes care by treatment class value market share DKK GLP-1 Insulin OAD Novo Nordisk Lilly BMS billion Takeda Merck Nova
Slide 34: Diabetes pandemic is fuelled by growing rates of obesity
NOVO NORDISK AT A GLANCE Investor Presentation First six months of 2013 Slide 34 Diabetes pandemic is fuelled by growing rates of obesity US CDC data on obesity and diabetes prevalence among adults 1994 2000 2010 Obesity (BMI ≥30 kg/m2) No Data <14.0% 14.0-17.9% 18.0-21.9% 22.0-25.9% >26.0% Diabetes
Slide 35: Insulin is the ultimate care for people with diabetes
NOVO NORDISK AT A GLANCE Investor Presentation First six months of 2013 Slide 35 Insulin is the ultimate care for people with diabetes Progression of type 2 diabetes and treatment Distribution of patients and value across intensification treatment classes Insulin GLP-1 Tablets 100% Diet and excercis
Slide 36: Novo Nordisk is uniquely positioned with a full portfolio of modern insulin
NOVO NORDISK AT A GLANCE Investor Presentation First six months of 2013 Slide 36 Novo Nordisk is uniquely positioned being the only company with a full portfolio of modern insulin Brand share of Sales segment Brand name Type Launch 2012 May 2013 Patent expiration Fast-acting EU: 1999 15.7 bDKK EU: 2
Slide 37: Significant growth opportunities fuelled by strong R&D pipeline
NOVO NORDISK AT A GLANCE Investor Presentation First six months of 2013 Slide 37 Significant growth opportunities fuelled by strong R&D pipeline OI338GT - OG987GT - Semaglutide - IDegLira - GLP-1 & Oral insulin Oral GLP-1 Long-acting GLP-1 basal insulin combo OI362GT - OG217SC - Liraglutide 3 mg - T
Slide 38: Growth opportunities supported by strong global presence in sales and manufacturing
NOVO NORDISK AT A GLANCE Investor Presentation First six months of 2013 Slide 38 Growth opportunities supported by strong global presence in both sales and manufacturing FTEs in sales regions excl. headquarter and manufacturing Global manufacturing setup North America: ~5,100 • API production • Form
Slide 39: High barriers to entry in biologics
NOVO NORDISK AT A GLANCE Investor Presentation First six months of 2013 Slide 39 High barriers to entry in biologics Novo Nordisk position is protected by patents ...and significant barriers to entry for and value chain setup... biosimilar players Patent protection1 Unique value Chain position EU/US
Slide 40: Operating profit continues to grow, driven by gross margin improvements
NOVO NORDISK AT A GLANCE Investor Presentation First six months of 2013 Slide 40 Operating profit continues to grow, driven by gross margin improvements and operational leverage The fundamental drivers of Operating profit operating profit growth DKK Operating profit Operating profit as % of sales Gr
Slide 41: Stable net operating assets drive growth in returns and free cash flow
NOVO NORDISK AT A GLANCE Investor Presentation First six months of 2013 Slide 41 Stable net operating profit assets drives growth in Operating profit after tax to net operating assets and free cash flow Operating profit after tax to net operating assets Free cash flow DKK Net operating assets DKK Fr
Slide 42: Cash generated is returned to shareholders in dividends and share buybacks
NOVO NORDISK AT A GLANCE Investor Presentation First six months of 2013 Slide 42 Cash generated is returned to shareholders in the form of dividends and share buybacks Dividend and payout ratio Share repurchases programmes (year of dividend pay) (year of repurchase) DKK Dividend paid Payout ratio DK
Slide 43: Diabetes
Investor Presentation First six months of 2013 Slide 43 Diabetes
Slide 44: Diabetes – the inability to manage blood sugar levels appropriately
DIABETES Investor Presentation First six months of 2013 Slide 44 Diabetes – the inability to manage blood sugar levels appropriately Definition Insulin secretion profile ’A metabolic disorder of multiple aetiology characterised by 70 chronic hyperglycaemia with disturbances of carbohydrate, fat and
Slide 45: Insulin – a hormone enabling blood sugar to enter cells
DIABETES Investor Presentation First six months of 2013 Slide 45 Insulin – a hormone enabling blood sugar to enter cells The aim of insulin therapy is to recreate normal Insulin enables food to become energy blood insulin profile 70 Short-lived, rapidly generated • Facilitates uptake of blood sugar
Slide 46: The diabetes pandemic and poor glycaemic control remain global problems
DIABETES Investor Presentation First six months of 2013 Slide 46 The diabetes pandemic and poor glycaemic control remain global problems Number of people with diabetes according to Differences in glycaemic control between IDF (Novo Nordisk reported regions) select countries North America Europe Japa
Slide 47: Poor diabetes diagnosis rates leading to death and significant costs
DIABETES Investor Presentation First six months of 2013 Slide 47 Poor diabetes diagnosis rates is leading to death and significant costs to world society Diabetes prevalence and diagnosis rates by IDF Comments to the diabetes pandemic and reported regions impact on society made by IDF Diabetes Preva
Slide 48: Diabetes pandemic is fuelled by growing rates of obesity
NOVO NORDISK AT A GLANCE Investor Presentation First six months of 2013 Slide 48 Diabetes pandemic is fuelled by growing rates of obesity US CDC data on obesity and diabetes prevalence among adults 1994 2000 2010 Obesity (BMI ≥30 kg/m2) No Data <14.0% 14.0-17.9% 18.0-21.9% 22.0-25.9% >26.0% Diabetes
Slide 49: UKPDS: Tight glycaemic control reduces risk of complications
DIABETES Investor Presentation First six months of 2013 Slide 49 UKPDS: Tight glycaemic control reduces risk of micro- and macrovascular complications UKPDS 10 year follow-up: Risk reduction by lowering HbA1c by 1% Legacy effect of tight glycaemic control Diabetes- Peripheral related Myocardial Micr
Slide 50: Insulin is the ultimate care for people with diabetes
NOVO NORDISK AT A GLANCE Investor Presentation First six months of 2013 Slide 50 Insulin is the ultimate care for people with diabetes Progression of type 2 diabetes and treatment Distribution of patients and value across intensification treatment classes Insulin GLP-1 Tablets 100% Diet and excercis
Slide 51: Medications used for the treatment of type 2 diabetes
DIABETES Investor Presentation First six months of 2013 Slide 51 Medications used for the treatment of type 2 diabetes Commonly prescribed products for the treatment of type 2 diabetes HbA1C Hypo- Weight CVD risk Dosing Contraindication/ Class change glycaemia change factors (pr. day) undesired effe
Slide 52: Novo Nordisk continues to expand leadership position within diabetes care
SALES UPDATE Investor Presentation First six months of 2013 Slide 52 Novo Nordisk continues to expand leadership position within diabetes care 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 N
Slide 53: Sustained double-digit insulin market growth
DIABETES Investor Presentation First six months of 2013 Slide 53 Sustained double-digit insulin market growth Global insulin market growth The fundamental growth drivers 2008-2013 of the insulin market DKK Volume billion CAGR: CAGR: 9.7%1 16.1%1 • Prevalence of diabetes 120 • Rising diagnosis rates
Slide 54: Solid insulin growth across diverse regions
DIABETES Investor Presentation First six months of 2013 Slide 54 Solid insulin growth across diverse regions Novo Nordisk Market Market volume Volume market regions value size & growth composition shares 60.3 5% 21% 75.7 14% Basal Novo Nordisk North America 39% 59% 41% 37% Fast acting Rest 24.9 2% 1
Slide 55: Global insulin volume growth remains at around 5%
Investor Presentation First six months of 2013 Slide 55 Global insulin volume growth remains at around 5% Regional insulin volume growth Regional insulin volume market split North America Europe Int. Operations North America Europe Int. Operations China Japan & Korea World China Japan & Korea 40% 10
Slide 56: The insulin market is comprised of three segments
DIABETES Investor Presentation First six months of 2013 Slide 56 The insulin market is comprised of three segments Action profiles of insulin Global insulin volume market by segments tMU CAGR volume1: 6.4% Fast acting CAGR value1: 16.2% 400 350 34% 300 Fast acting Premix 250 32% 200 28% 150 33% Prem
Slide 57: Maintaining insulin leadership by sustaining modern insulin market share
DIABETES Investor Presentation First six months of 2013 Slide 57 Maintaining insulin leadership by sustaining modern insulin market share Novo Nordisk volume market share across insulin classes Novo Nordisk segment MS (%) Segment volume tMU Human insulin tMU Modern insulin tMU Total insulin 450 100%
Slide 58: Novo Nordisk is uniquely positioned with a full portfolio of modern insulin
NOVO NORDISK AT A GLANCE Investor Presentation First six months of 2013 Slide 58 Novo Nordisk is uniquely positioned being the only company with a full portfolio of modern insulin Brand share of Sales segment Brand name Type Launch 2012 May 2013 Patent expiration Fast-acting EU: 1999 15.7 bDKK EU: 2
Slide 59: Novo Nordisk modern insulin performance within the respective segments
DIABETES Investor Presentation First six months of 2013 Slide 59 Novo Nordisk modern insulin performance within the respective segments Long acting insulin Rapid-acting insulin Premixed insulin Segment volume Segment volume Segment volume Levemir® market share NovoRapid® market share Novomix® market
Slide 60: Still a significant potential on the US modern insulin market
DIABETES Investor Presentation First six months of 2013 Slide 60 Still a significant potential for Novo Nordisk on the US modern insulin market US insulin market by segments US modern insulin volume market shares Device penetration Modern Insulin penetration Novo Nordisk Sanofi Eli Lilly tMU CAGR vo
Slide 61: Maintaining the solid leadership position on the European modern insulin market
DIABETES Investor Presentation First six months of 2013 Slide 61 Maintaining the solid leadership position on the European modern insulin market European modern insulin European insulin market by segments volume market shares Device penetration Modern Insulin penetration Novo Nordisk Sanofi Eli Lill
Slide 62: Stable leadership position on the rapidly growing Chinese insulin market
DIABETES Investor Presentation First six months of 2013 Slide 62 Stable leadership position on the rapidly growing Chinese insulin market Chinese insulin market by segments Chinese insulin volume market shares Device penetration Modern Insulin penetration Novo Nordisk Sanofi Eli Lilly Shanghai Fosun
Slide 63: Stable leadership position in International Operations
DIABETES Investor Presentation First six months of 2013 Slide 63 Stable leadership position in International Operations International Operations insulin International Operations insulin market by segments volume market shares Device penetration Modern Insulin penetration Novo Nordisk Sanofi Lilly tM
Slide 64: Sustained leadership position in Japan
DIABETES Investor Presentation First six months of 2013 Slide 64 Sustained leadership position in Japan Japanese insulin market by segments Japanese modern insulin volume market shares Device penetration Modern Insulin penetration Novo Nordisk Sanofi Eli Lilly tMU CAGR volume1: 1.7% Penetration 14 C
Slide 65: GLP-1 effect dependent on level of blood glucose
DIABETES Investor Presentation First six months of 2013 Slide 65 GLP-1 effect dependent on level of blood glucose -which reduces risk of hypoglycaemia When blood sugar levels increase then GLP-1 GLP-1 lowers blood glucose in patients with does the following: type 2 diabetes • Increases insulin secre
Slide 66: Victoza, the only once-daily human GLP-1 analogue for type 2 diabetes
DIABETES Investor Presentation First six months of 2013 Slide 66 Victoza®, the only once-daily human GLP-1 analogue for type 2 diabetes Characteristics of Victoza® • Reduces blood glucose levels with a very low risk of hypoglycaemia • 13 hours half-life allows for once-daily dosing • Reduces weight
Slide 67: The global GLP-1 market continues to expand
DIABETES Investor Presentation First six months of 2013 Slide 67 The global GLP-1 market continues to expand Victoza® is driving the expansion of the global North America constitutes the majority of the GLP-1 market GLP-1 value market1 GLP-1 sales in bDKK (right axis) North America Europe Internatio
Slide 68: Continued expansion of the US GLP-1 market
DIABETES Investor Presentation First six months of 2013 Slide 68 Continued expansion of the US GLP-1 market Key observations for Victoza® US GLP-1 market in the US market GLP-1 TRx scripts GLP-1 % of diabetes care market • Victoza® market share within the GLP-1 segment is close to (thousands) 65%1 U
Slide 69: Victoza continues to expand the GLP-1 class in key European markets
SALES UPDATE Investor Presentation First six months of 2013 Slide 69 Victoza® continues to expand the GLP-1 class in key European markets Development in key European markets following Victoza® launch Victoza® Exenatide Lixisenatide Germany UK France Market value1: DKK 12 billion Market value1: DKK 6
Slide 70: R&D pipeline: Diabetes and obesity
DIABETES Investor Presentation First six months of 2013 R&D pipeline: Diabetes and obesity Compound Type Indication Status (phase) 1 2 3 Filed Appr. Tresiba® (NN1250)1 Ultra long-acting basal insulin Type 1+2 Ryzodeg® (NN5401)1 Ultra long-acting basal insulin with a bolus boost Type 1+2 IDegLira (NN
Slide 71: BEGIN and BOOST confirm the profiles of Tresiba and Ryzodeg
DIABETES Investor Presentation First six months of 2013 Slide 71 BEGINTM and BOOSTTM confirm the profiles of Tresiba® and Ryzodeg® Tresiba® OD vs insulin glargine OD1 Ryzodeg® BD vs NovoMix® BD2 • Basal insulin with flatter, less variable profile • First basal-prandial combination product and a doub
Slide 72: Meta-analysis confirms hypoglycaemic profile of insulin degludec
DIABETES Investor Presentation First six months of 2013 Slide 72 Meta-analysis across type 1 and type 2 diabetes trials confirms hypoglycaemic profile of insulin degludec = statistical significance Confirmed hypoglycaemia Nocturnal hypoglycaemia Total period Maintenance period2 Total period Maintena
Slide 73: Competitive label for Tresiba in Europe and Japan
DIABETES Investor Presentation First six months of 2013 Slide 73 Competitive label for Tresiba® in Europe and Japan European label Japanese label • Duration of action beyond 42 hours • Duration of action tested up to 26 hours in Japanese patients • Four times lower day-to-day variability compared to
Slide 74: Competitive label for Ryzodeg in Europe and Japan
DIABETES Investor Presentation First six months of 2013 Slide 74 Competitive label for Ryzodeg® in Europe and Japan European label Japanese label • Duration of action beyond 24 hours with a single injection • Duration of action beyond 24 hours in Japanese patients with a • An action profile reflecti
Slide 75: Early feedback from launch markets shows strong execution of Tresiba strategy
DIABETES Investor Presentation First six months of 2013 Slide 75 Early feedback from launch markets shows strong execution of Tresiba® strategy Most recalled messages1 Example of Tresiba® promotional detail aid in the UK • Less hypoglycaemia (incl. nocturnal) • Long duration of action • Flexible in
Slide 76: IDegLira phase 3 trial programme – published trials
DIABETES Investor Presentation First six months of 2013 Slide 76 IDegLira phase 3 trial programme – published trials Trial ID Phase Trial arms Trial Purpose Participants Duration LPLV IDegLira vs. NN9068-3697 3a IDeg vs. Pivotal: Compare efficacy and safety N = 1663, T2 52 weeks1 Reported liraglutid
Slide 77: In DUAL I, IDegLira lowered HbA1c while reducing weight and hypoglycaemia risk
DIABETES Investor Presentation First six months of 2013 Slide 77 In DUALTM I, IDegLira successfully lowered HbA1c while reducing weight and the risk of hypoglycaemia DUALTM I (NN9068-3697) trial design Headline results Tresiba® Victoza® IDegLira IDegLira once-daily (n=834) Baseline HbA1c 8.3% 8.3% 8
Slide 78: DUAL II completes the pivotal programme for IDegLira
DIABETES Investor Presentation First six months of 2013 Slide 78 DUALTM II completes the pivotal programme for IDegLira, a fixed ratio combination of Victoza® and Tresiba® DUALTM II (NN9068-3912) trial design Headline results IDegLira2 398 people IDegLira once-daily2 (n=199) Baseline HbA1c 8.7% with
Slide 79: FIAsp completes phase 1 pump study in people with type 1 diabetes
R&D UPDATE Investor Presentation First six months of 2013 Slide 79 FIAsp completes phase 1 pump study in people with type 1 diabetes Key results of NN1218-3930 phase 1 trial Incremental Meal-test Glucose Profiles in 42 people with type 1 diabetes FIAsp NovoRapid® • Exploratory double blinded cross o
Slide 80: Semaglutide selected as once-weekly GLP-1 candidate
DIABETES Investor Presentation First six months of 2013 Slide 80 Semaglutide selected as Novo Nordisk’s once- weekly GLP-1 candidate Comparison of HbA1c reductions over 12 weeks Summary and conclusions Semaglutide Liraglutide • 12-week, randomised, double-blind, placebo-controlled phase 2 trial in 4
Slide 81: First phase 3a trial with semaglutide initiated in February 2013
DIABETES Investor Presentation First six months of 2013 Slide 81 First phase 3a trial with semaglutide initiated in February 2013 SUSTAIN™ 6 (NN9535-3744) trial design Trial rationale and objective Trial rationale Semaglutide 1.0 mg • To assess the long-term effect of semaglutide on cardiovascular a
Slide 82: The oral project portfolio is expanding
DIABETES Investor Presentation First six months of 2013 Slide 82 The oral project portfolio is expanding Overview of oral insulin projects1 Overview of oral GLP-1 projects2 OI338GT OI362GT OI287GT OG217SC OG217GT OG987SC OG987GT (NN1953) (NN1954 (NN1956) (NN9924) (NN9928) (NN9927) (NN9926) Molecule
Slide 83: Liraglutide 3 mg phase 3a programme completed
R&D UPDATE Investor Presentation First six months of 2013 Slide 83 Liraglutide 3 mg phase 3a programme completed - submission expected around the turn of the year Trial Arms Duration Status • Liraglutide 3 mg (n=210) 56 weeks + 12 Completed in SCALETM-Maintenance • Placebo (n=210) weeks follow-up Q3
Slide 84: Liraglutide 3 mg promoted weight maintenance in a 56-week trial
DIABETES Investor Presentation First six months of 2013 Slide 84 In a 56-week trial, liraglutide 3 mg promoted weight maintenance and additional weight loss in obese adults Conclusions on the Change in body weight by week SCALETM-Maintenance trial • Subjects lost >5% (6 kg) during 12 week hypo-calor
Slide 85: Type 2 diabetes patients achieved 6% weight loss in SCALE-diabetes
DIABETES Investor Presentation First six months of 2013 Slide 85 People with type 2 diabetes achieved 6% weight loss with liraglutide 3 mg in SCALETM-diabetes trial SCALETM-diabetes (NN8022-1922) trial design Headline results Placebo Liraglutide Liraglutide Liraglutide 3 mg (n=422) 1.8 mg 3 mg 846 p
Slide 86: People with obesity achieved 8% weight loss in SCALE-obesity
R&D UPDATE Investor Presentation First six months of 2013 Slide 86 People with obesity achieved 8% weight loss with liraglutide 3 mg in SCALETM-obesity trial SCALETM-obesity (NN8022-1839) trial design Headline results 56 weeks 3,731 people with obesity1: With and without pre- Placebo Liraglutide dia
Slide 87: Obesity and Obstructive Sleep Apnoea (OSA)
Investor Presentation First six months of 2013 Slide 87 Obesity and Obstructive Sleep Apnoea (OSA) – a common sleep related breathing disorder Prevalence and description Treatment • Affects at least 5-10 million (2–4%) adults in the US1 • The Gold Standard treatment for moderate to severe OSA is pos
Slide 88: Obesity burden – US market
DIABETES Investor Presentation First six months of 2013 Slide 88 Obesity burden – US market US obesity market statistics Comments to the US obesity burden • Cost of obesity to health care systems of US $147 billion Obese Over- annually2 with continued growth Million weight Class I Class II Class III
Slide 89: US obesity medication market is small and declining
DIABETES Investor Presentation First six months of 2013 Slide 89 ~35% of the US adult population is obese, but the market for obesity medication is small and declining Factors that have impacted the obesity market US obesity market statistics in recent years DKK Global US • Safety concerns with mark
Slide 90: Biopharmaceuticals
Investor Presentation First six months of 2013 Slide 90 Biopharmaceuticals
Slide 91: Biopharmaceuticals – global leadership in select, high-value disease areas
BIOPHARMACEUTICALS Investor Presentation First six months of 2013 Slide 91 Biopharmaceuticals – global leadership in select, high-value disease areas Haemophilia Growth Hormone Inflammation with inhibitors Therapy 2012 sales: DKK 8.9 billion 2012 sales: DKK 5.7 billion 2012 sales: DKK 0 Global marke
Slide 92: Haemophilia: Location of bleedings and the consequences
BIOPHARMACEUTICALS Investor Presentation First six months of 2013 Slide 92 Haemophilia: Location of bleedings and the consequences Locations Consequences of bleedings • Bleeding in the joint space causes a strong inflammatory reaction which predisposes to further bleeding Head and neck Nose and gums
Slide 93: Haemophilia – a significant market suited for core strengths
BIOPHARMACEUTICALS Investor Presentation First six months of 2013 Slide 93 Haemophilia – a significant market suited for Novo Nordisk’s core strengths within human proteins Number of people with haemophilia A and B and haemophilia with inhibitors Sales of recombinant coagulation factors Novoseven® X
Slide 94: NovoSeven – a unique biologic for rare bleeding disorders
BIOPHARMACEUTICALS Investor Presentation First six months of 2013 Slide 94 NovoSeven® - a unique biologic for the treatment of a rare bleeding disorders Reported sales Key NovoSeven® properties DKK • Product characteristics: powder and solvent for solution billion for i.v. injection, available in mu
Slide 95: Core capabilities applied within haemophilia to expand the product portfolio
BIOPHARMACEUTICALS Investor Presentation First six months of 2013 Slide 95 Core capabilities are applied within haemophilia to expand the product potfolio development development development development Plasma- Recombinant FVIIa Recombinant FVIIa Market Factor VIIa derived analogues FVIIa1 Plasma-de
Slide 96: R&D pipeline: Haemophilia and hGH
BIOPHARMACEUTICALS Investor Presentation First six months of 2013 Slide 96 R&D pipeline: Haemophilia and hGH Compound Type Indication Status (phase) 1 2 3 Filed Appr. Catridecacog1 (NN1841) rFXIII Congenital FXIII deficiency Turoctocog alfa (NN7008) rFVIII Haemophilia A N9-GP (NN7999) Long-acting rF
Slide 97: Phase 1 trial: turoctocog alfa bioequivalence with existing rFVIII
BIOPHARMACEUTICALS Investor Presentation First six months of 2013 Slide 97 In a phase 1 trial turoctocog alfa showed bioequivalence with existing rFVIII product PK profile of rFVIII products from phase 1 trial Key results from phase 3a trial programme FVIII turoctocog alfa Advate® • Positive safety
Slide 98: Phase 1 trial: N8-GP pharmacokinetic profile supports less frequent dosing
BIOPHARMACEUTICALS Investor Presentation First six months of 2013 Slide 98 In a phase 1 trial the pharmacokinetic profile of N8-GP supported less frequent dosing PK profile of N8-GP1 compared with other rFVIII product Key results from phase 1 trial FVIII 25 IU/kg previous FVIII product • N8-GP was w
Slide 99: Positive results from phase 3 trial with long-acting factor IX
R&D UPDATE Investor Presentation First six months of 2013 Slide 99 Positive results from phase 3 trial with long-acting factor IX for treatment of haemophilia B ParadigmTM 2 (NN7999 - 3747) trial design Headline results 74 patients with haemophilia B: • Median bleeding rate for patients treated on d
Slide 100: NovoThirteen provides efficacious and safe haemostatic coverage
BIOPHARMACEUTICALS Investor Presentation First six months of 2013 Slide 100 NovoThirteen®, a recombinant FXIII, provides efficacious and safe haemostatic coverage FXIII activity levels in mentor™ 1 phase 3 trial Key results from pivotal phase 3 trial Berichrom FXIII • NovoThirteen® was effective in
Slide 101: Novo Nordisk maintains stable position in the human growth hormone market
BIOPHARMACEUTICALS Investor Presentation First six months of 2013 Slide 101 Novo Nordisk maintains stable market position in the human growth hormone market Development in global hGH market Growth hormone volume market share MAT value DKK (left axis) Novo Nordisk Pfizer Sandoz MAT Volume kg (right a
Slide 102: Solid Norditropin sales growth
BIOPHARMACEUTICALS Investor Presentation First six months of 2013 Slide 102 Solid Norditropin® sales growth Reported Norditropin® sales Key Norditropin® properties • Product characteristics: Premixed, prefilled multi-use DKK delivery systems available in multiple strengths, some stable billion CAGR
Slide 103: R&D pipeline: Inflammation
BIOPHARMACEUTICALS Investor Presentation First six months of 2013 Slide 103 R&D pipeline: Inflammation Type Indication Status (phase) 1 2a 2b 3 Filed Appr. Anti-IL-20 (NN8226) Monoclonal antibody Rheumatoid arthritis Anti-IL-21 (NN8828) Monoclonal antibody Rheumatoid arthritis Anti-IL-21 (NN8828) Mo
Slide 104: Inflammation well suited to leverage core capabilities
BIOPHARMACEUTICALS Investor Presentation First six months of 2013 Slide 104 Inflammation well suited to leverage Novo Nordisk’s core capabilities Protein focus • Mainstay of modern anti-inflammatory therapies Immunology focus • Novo Nordisk core competence • Direct pathogenic mechanism for Protein a
Slide 105: Financials
Investor Presentation First six months of 2013 Slide 105 Financials
Slide 106: Solid sales growth with North America, International Operations and China expanding
FINANCIALS Investor Presentation First six months of 2013 Slide 106 Solid sales growth with especially North America, International Operations and China expanding Reported annual sales Reported annual sales split by region Diabetes Biopharmaceuticals North America Europe Japan & Korea DKK China Int.
Slide 107: Solid operating profit growth driven by diabetes
FINANCIALS Investor Presentation First six months of 2013 Slide 107 Solid operating profit growth driven by diabetes Operating profit Operating profit therapy split Operating profit Operating profit as % of sales Diabetes Biopharm DKK Operating profit growth vs. last year billion 35 45% 32% 40% 30 3
Slide 108: Profitability per segment
FINANCIALS Investor Presentation First six months of 2013 Slide 108 Profitability per segment Diabetes P&L, 2012 Biopharmaceuticals P&L, 2012 DKK DKK billion billion 70 70 -19% 60 60 -31% 50 50 40 40 -12% 30 30 -4% +1% 35% 20 20 -12% -16% -15% -4% +1% 55% 10 10 0 0 Sales COGS S&D R&D Admin OOI OP Sa
Slide 109: Continued decline in relative COGS level combined with stable investment level
FINANCIALS Investor Presentation First six months of 2013 Slide 109 Continued decline in relative COGS level combined with stable investment level Cost of Goods Sold (COGS) Capital expenditures (CAPEX) COGS as % of sales CAPEX as % of sales DKK COGS DKK CAPEX billion billion 14 25% 4 6% Thousands 12
Slide 110: Growing profits converted into free cash flow
FINANCIALS Investor Presentation First six months of 2013 Slide 110 Growing profits converted into free cash flow Net profit Free cash flow (absolute) Net profit Free cash flow as % of net profit DKK EPS diluted DKK Free cash flow billion billion 25 45 20 140% Thousands 40 18 120% 20 35 16 14 100% 3
Slide 111: Long-term financial targets
FINANCIALS Investor Presentation First six months of 2013 Slide 111 Long-term financial targets Performance against long-term financial targets Average Result Previous Updated 2008-20121 2012 targets targets2 Operating profit growth 27% 32% 15% 15% Operating margin 32% 38% 35% 40% Operating profit a
Slide 112: Long term financial targets: Operating profit growth and operating margin
FINANCIALS Investor Presentation First six months of 2013 Slide 112 Long term financial targets: Operating profit growth and operating margin Operating profit growth Operating margin New long term financial target New long term financial target Previous long term financial targets Previous long term
Slide 113: Long term financial targets: Returns and cash to earnings
FINANCIALS Investor Presentation First six months of 2013 Slide 113 Long term financial targets: Operating profit after tax to net operating assets, and cash to earnings Operating profit after tax to net operating Cash to earnings assets (three years’ average) New long term financial target New long
Slide 114: Cash generated is returned to shareholders in dividends and share buybacks
NOVO NORDISK AT A GLANCE Investor Presentation First six months of 2013 Slide 114 Cash generated is returned to shareholders in the form of dividends and share buybacks Dividend and payout ratio Share repurchases programmes (year of dividend pay) (year of repurchase) DKK Dividend paid Payout ratio D
Slide 115: Stable ownership structure
FINANCIALS Investor Presentation First six months of 2013 Slide 115 Stable ownership structure - secured through A and B-share structure Share structure The Novo Nordisk Foundation Novo Nordisk • The Novo Nordisk Foundation is a self-governing institution Foundation that: Institutional and • provide