Novo Nordisk A/s Class B · OMXCOP:NOVO_B
Novo Nordisk A/s Class B — FY2017 Earnings Presentation
111 slides from Novo Nordisk A/s Class B's earnings presentation, Feb 1, 2018
Slide 1: Investor presentation Full year 2017
Slide 1 Investor presentation Full year 2017 Manato Ohara, diagnosed with type 1 diabetes Kanagawa, Japan
Slide 2: Agenda
Investor Presentation Full year 2017 Slide 2 Agenda Highlights and key events Sales update R&D update Financials and outlook
Slide 3: Forward-looking statements
Investor Presentation Full year 2017 Slide 3 Forward-looking statements Novo Nordisk’s reports filed with or furnished to the US Securities and Exchange Commission (SEC), including the company’s Annual Report 2016 and Form 20-F, which are both filed with the SEC in February 2017 in continuation of t
Slide 4: Highlights – Full year 2017
Investor Presentation Full year 2017 Slide 4 Highlights – Full year 2017 Sales development • Sales increased by 2% in local currencies and were unchanged in Danish kroner • International Operations grew by 5% in local currencies • North America Operations sales were unchanged in local currencies • T
Slide 5: Executive management as of February 2018
Investor Presentation Full year 2017 Slide 5 Executive management as of 15 February 2018 President & CEO Lars Fruergaard Jørgensen Research & Product Supply Commercial North America International Biopharm & Finance, Investor Business Development Strategy & Operations Operations Legal Affairs Relatio
Slide 6: Sales growth driven by International Operations
Investor Presentation Full year 2017 Slide 6 Sales growth driven by International Operations Sales as reported – full year 2017 Growth analysis – full year 2017 Region Region Latin America Local currencies Growth Share of growth Japan & Korea +3% North America Operations (0.2%) (5%) (2%) 3% Hereof U
Slide 7: Sales growth derived from diabetes care and obesity
Investor Presentation Full year 2017 Slide 7 Sales growth derived from diabetes care and obesity, driven by Tresiba®, Victoza® and Saxenda® Sales as reported – full year 2017 Growth analysis – full year 2017 Growth Other Local currencies Growth Share of growth hormone biopharmaceuticals New-generati
Slide 8: Basal insulin market penetration with Tresiba supported by Xultophy launches
Investor Presentation Full year 2017 Slide 8 Basal insulin market penetration with Tresiba® supported by Xultophy® launches Tresiba® value market share of basal insulin Combined value market share of Tresiba® and segment in selected countries outside the US Xultophy® in selected countries Switzerlan
Slide 9: Total Novo Nordisk basal insulin volume market share has increased to 34% in the US
Investor Presentation Full year 2017 Slide 9 Total Novo Nordisk basal insulin volume market share has increased to 34% in the US Weekly TRx volume market shares in the US Tresiba® launch in the US glargine U100 NN Total Basal Levemir® • The ambition to reach 10% Tresiba® TRx volume market Basal volu
Slide 10: Victoza continues strong growth trajectory in the US
Investor Presentation Full year 2017 Slide 10 Victoza® continues strong growth trajectory in the US driven by GLP-1 market volume growth of 23% US GLP-1 market development US GLP-1 market monthly TRx US GLP-1 volume market share MAT GLP-1 Total TRx Growth rate GLP-1 TRx Victoza® exenatide GLP-1 TRx
Slide 11: Ozempic approved in the USA and positive CHMP opinion issued in the EU
Investor Presentation Full year 2017 Slide 11 approved in the USA and positive CHMP opinion issued in the EU CHMP endorsed inclusion of CV data Ozempic® label in the USA from SUSTAIN 6 trial in Ozempic® EU label • Reduction in HbA1c vs comparators1 Ozempic® label Victoza® label Efficacy Safety • Red
Slide 12: Large cardiovascular outcomes study, SOUL, to be initiated mid 2018
Investor Presentation Full year 2017 Slide 12 Large cardiovascular outcomes study, SOUL, to be initiated mid 2018 with SOUL study design Study purpose and end-points • Purpose: To confirm that treatment with Ozempic® results in decreased cardiovascular risk compared to placebo ~13,000 Ozempic® 1.0 m
Slide 13: Phase 3a programme STEP and CV outcomes study SELECT
Investor Presentation Full year 2017 Slide 13 Phase 3a programme STEP and CV outcomes study SELECT with semaglutide 2.4 mg in obesity to be initiated Semaglutide in obesity phase 3a programme, Cardiovascular outcomes study, SELECT, STEP, expected to include ~4,500 patients1 planned for semaglutide i
Slide 14: Key development milestones reached
Investor Presentation Full year 2017 Slide 14 Key development milestones reached • Results from onset 5 phase 3b trial with Fiasp® compared to NovoRapid® in adults with type 1 diabetes • DUAL II Japan phase 3a trial with Xultophy® completed Diabetes • Data from the DEVOTE trial submitted for inclusi
Slide 15: R&D milestones in 2018
Investor Presentation Full year 2017 Slide 15 R&D milestones in 2018 Results available1 Regulatory milestone Project Q1 2018 Q2 2018 Q3 2018 Q4 2018 DEVOTE and SWITCH Tresiba® vs insulin Tresiba® US regulatory decision glargine U300 data DUAL I Japan Phase 3a Xultophy® Japan submission DUAL II Japan
Slide 16: Financial results – full year 2017
Investor Presentation Full year 2017 Slide 16 Financial results – full year 2017 DKK million Change Change FY 2017 FY 2016 (reported DKK) (local currency) Sales 111,696 111,780 (0%) 2% Gross profit 94,064 94,597 (1%) 2% Gross margin 84.2% 84.6% Sales and distribution costs 28,340 28,377 (0%) 2% Perc
Slide 17: Unfavourable currency impact in 2017
Investor Presentation Full year 2017 Slide 17 Unfavourable currency impact in 2017 driven by development in both hedged and unhedged currencies USD/DKK CNY/DKK JPY/DKK GBP/DKK CAD/DKK 120 Hedged 2016 2017 Spot Impact of a Hedging Index (1 Jan 2016= 100) Currencies average average2 rate2 5% move3 (mo
Slide 18: Financial outlook for 2018
Investor Presentation Full year 2017 Slide 18 Financial outlook for 2018 Expectations 1 February 2018 Sales growth - local currencies 2% to 5% Sales growth - reported Around 7 percentage points lower Operating profit growth - local currencies 1% to 5% Operating profit growth - reported Around 10 per
Slide 19: Cash return to shareholders in 2018
Investor Presentation Full year 2017 Slide 19 Cash return to shareholders in 2018 Annual cash return to shareholders Cash return priorities DKK Share repurchase Interim dividend Dividend • New share repurchase programme of up to DKK 14 billion billion Free cash flow Free cash flow guidance to be exe
Slide 20: Closing remarks
Investor Presentation Full year 2017 Slide 20 Closing remarks Solid leadership positions and continued market opportunities Promising pipeline and product launches 27% Novo Nordisk value market share in diabetes • The only company with a full portfolio of novel > > care and solid leadership position
Slide 21: Investor contact information
Investor Presentation Full year 2017 Slide 21 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 New York Stock Exc
Slide 22: Appendix
Investor Presentation Full year 2017 Slide 22 Appendix 1. Novo Nordisk at a glance 23 2. Diabetes 37 3. Obesity 80 4. Biopharmaceuticals 88 5. Other serious chronic diseases 98 6. Financials 100 7. Sustainable business 108
Slide 23: Novo Nordisk at a glance
Investor Presentation Full year 2017 Slide 23 Novo Nordisk at a glance Global leader in diabetes care Global insulin market leadership • A focused pharmaceutical company with leading positions in Global insulin market share: 46% diabetes, haemophilia and growth hormone Region Europe: Market share 44
Slide 24: Novo Nordisk strategic foundation
Investor Presentation Full year 2017 Slide 24 Novo Nordisk strategic foundation STRATEGIC PRIORITIES CORE CAPABILITIES Engineering, Deep disease Efficient Global Expand leadership in formulating, understanding large-scale commercial DIABETES leadership in Strengthen developing production of reach an
Slide 25: Top line growth driven by the diabetes pandemic
Investor Presentation Full year 2017 Slide 25 Top line growth driven by the diabetes pandemic Novo Nordisk reported quarterly sales Reported sales split by product segments for by therapy the full year of 2017 DKK Diabetes and obesity Haemophilia2 New-generation insulin Modern insulin Human insulin
Slide 26: Novo Nordisk has leading positions in diabetes, haemophilia and obesity
Investor Presentation Full year 2017 Slide 26 Novo Nordisk has leading positions in diabetes, haemophilia and obesity Diabetes Obesity Haemophilia DKK Market value DKK Market value DKK Market value billion Novo Nordisk value market share billion Novo Nordisk value market share billion Novo Nordisk v
Slide 27: Global diabetes prevalence is increasing
Investor Presentation Full year 2017 Slide 27 Global diabetes prevalence is increasing and 629 million people are expected to have diabetes by 2045 The number of people with diabetes is expected Around 10% of all adults globally have diabetes to increase by 48% by 2045 North America Region Europe Re
Slide 28: Focus on driving global insulin growth
Investor Presentation Full year 2017 Slide 28 Focus on driving global insulin growth by increasing the number of people benefitting from Novo Nordisk products Around 26 million people are currently treated Only 6% of all people with diabetes are treated with Novo Nordisk insulin and GLP-1 products w
Slide 29: Strong leadership position within the growing diabetes care market
Investor Presentation Full year 2017 Slide 29 Novo Nordisk has a strong leadership position within the growing diabetes care market Global diabetes care market Global diabetes care by treatment class value market share DKK OAD GLP-1 Insulin Novo Nordisk Sanofi Eli Lilly Merck J&J billion AstraZeneca
Slide 30: Continued single digit volume growth within the insulin segments
Investor Presentation Full year 2017 Slide 30 Continued single digit volume growth within the insulin segments globally Fast-acting insulin Premix insulin Long-acting insulin Segment volume Segment volume Segment volume Levemir® share NovoRapid® market share NovoMix® market share Tresiba® share tMU
Slide 31: Biopharm strategy to return to growth
Investor Presentation Full year 2017 Slide 31 Biopharm constitutes 17% of Novo Nordisk sales and a strategy has been defined to return to growth NovoSeven® and Norditropin® ‘Return to Growth’ strategy builds on organic, account for 84% of Biopharm sales1 non-organic and organisational initiatives DK
Slide 32: Novo Nordisk Corporate Strategy and R&D strategy
Investor Presentation Full year 2017 Slide 32 Novo Nordisk Corporate Strategy R&D strategy and priorities STRATEGIC PRIORITIES R&D PRIORITIES • Develop disruptive insulin and GLP-1 based products with distinct clinical and/or delivery advantages Strengthen leadership in DIABETES CARE • Develop novel
Slide 33: Significant growth opportunities fuelled by strong pipeline
Investor Presentation Full year 2017 Slide 33 Significant growth opportunities fuelled by strong pipeline across all four strategic focus areas PHASE 1 PHASE 2 PHASE 3 SUBMITTED APPROVED NN1436 – LAI287 Anti-IL-21 and liraglutide Oral semaglutide Semaglutide – QW GLP-1 Levemir® NN1406 – PI406 Semagl
Slide 34: Strong global presence in both sales and manufacturing
Investor Presentation Full year 2017 Slide 34 Growth opportunities supported by strong global presence in both sales and manufacturing FTEs in sales regions1 Global manufacturing setup Denmark (~9,750 FTEs) Kaluga, Russia (~250 FTEs) North America Operations: ~4,800 • Diabetes and biopharmaceutical
Slide 35: Solid patent protection of innovative drugs
Investor Presentation Full year 2017 Slide 35 Solid patent protection of innovative drugs Novo Nordisk’s position is protected by patents and value chain setup Barriers to entry for biosimilar players EU patent protection1 US patent protection1 Research & Development 20312 203222 • Need to show comp
Slide 36: Key assumptions supporting the long-term financial target
Investor Presentation Full year 2017 Slide 36 Key assumptions supporting the long-term financial target of an average of 5% operating profit growth1 Expected future sales drivers Expected future cost drivers • Continued underlying 3-4% volume growth • Expected to decline with approximately 1-3%- of
Slide 37: Diabetes
CARLA PRISCO, Brazil Full year 2017 Slide 37 Carla Prisco has type 1 diabetes Diabetes
Slide 38: Diabetes – the inability to manage blood sugar levels
Investor Presentation Full year 2017 Slide 38 Diabetes – the inability to manage blood sugar levels appropriately The aim of insulin therapy is to recreate normal Facts about diabetes blood insulin profile Diabetes is a chronic disease that occurs either when the pancreas does not produce enough ins
Slide 39: Diabetes pandemic is fuelled by growing rates of obesity
Investor Presentation Full year 2017 Slide 39 Diabetes pandemic is fuelled by growing rates of obesity US CDC data on obesity and diabetes prevalence among adults 1994 2000 2014 Obesity prevalence (BMI ≥30 kg/m2) <14.0% 14.0-17.9% 18.0-21.9% 22.0-25.9% 26.0-29.9% ≥30% Diabetes prevalence <4.5% 4.5-5
Slide 40: Poor diagnosis rates and glycaemic control remain global problems
Investor Presentation Full year 2017 Slide 40 Poor diagnosis rates, lack of access to optimal treatment and poor glycaemic control remain global problems Diagnosis and optimal treatment The worldwide challenge of glycaemic control: remains a challenge – the rule of halves Mean HbA1C in type 2 diabet
Slide 41: Insulin is the ultimate care for people with diabetes
Investor Presentation Full year 2017 Slide 41 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 OAD 100% Diet and exercise 80% 37% -cell function OAD 68% 60% GL
Slide 42: The insulin market is comprised of three segments
Investor Presentation Full year 2017 Slide 42 The insulin market is comprised of three segments Insulin action profiles Global insulin volume market by segment tMU CAGR volume1: 4.4% 500 CAGR value1: 16.8% Fast-acting 400 35% Fast-acting 300 34% Premix 26% 200 Premix 29% Long-acting 100 Long-acting
Slide 43: Medications used for the treatment of type 2 diabetes
Investor Presentation Full year 2017 Slide 43 Medications used for the treatment of type 2 diabetes Commonly prescribed product classes for the treatment of type 2 diabetes HbA1C Hypoglycae- Weight Dosing Contraindication/ Class CVD risk change mia risk change (pr. day) undesired effects Metformin 1
Slide 44: Current and future product portfolio covers type 2 diabetes treatment cascade
Investor Presentation Full year 2017 Slide 44 Novo Nordisk current and future product portfolio covers the type 2 diabetes treatment cascade1 Overview of current and future products in Novo Nordisk’s diabetes portfolio When basal insulin is not enough When When it's time metformin is for insulin Onc
Slide 45: Broad insulin portfolio with three generations of products
Investor Presentation Full year 2017 Slide 45 Novo Nordisk holds a broad insulin portfolio with three generations of products covering the treatment cascade Novo Nordisk product portfolio includes three Commercial focus depends on market maturity generations of insulin products and market access sit
Slide 46: Stable global insulin volume growth
Investor Presentation Full year 2017 Slide 46 Stable global insulin volume growth Regional insulin volume growth Regional insulin volume market split North America Region Europe Region AAMEO North America Region Europe Region AAMEO Region China Region J&K Region LATAM Region China Region J&K Region
Slide 47: Maintaining global insulin leadership
Investor Presentation Full year 2017 Slide 47 Maintaining global insulin leadership by sustaining modern and new-generation insulin market share Novo Nordisk global volume market share across insulin classes volume Novo Nordisk market share (%) tMU tMU Modern and new- tMU 500 Human insulin1 100% 500
Slide 48: Strong underlying insulin market growth and sustained market share
Investor Presentation Full year 2017 Slide 48 Strong underlying insulin market growth and sustained global volume market share Global modern and new-generation insulin Global insulin market volume market shares Device penetration Modern insulin penetration1 Novo Nordisk Sanofi Eli Lilly tMU Penetrat
Slide 49: Market leader in the USA within modern and new-generation insulin
Investor Presentation Full year 2017 Slide 49 Novo Nordisk is now the market leader in the USA within the modern and new-generation insulin segment Modern insulin and new-generation insulin USA insulin market by segment volume market shares in the USA Device penetration Modern Insulin penetration No
Slide 50: Modern and new generation insulins maintain market share in the US
Investor Presentation Full year 2017 Slide 50 Novo Nordisk’s modern and new generation insulins maintain market share in the US insulin market US fast-acting insulin US premix insulin US long-acting insulin Segment volume Segment volume Segment volume Levemir® share NovoLog® share NovoLog® Mix 70/30
Slide 51: US health insurance dominated by few large commercial payers
Investor Presentation Full year 2017 Slide 51 US health insurance is dominated by few large commercial payers with slow expansion of public insurance coverage US population by health insurance status In 2017, PBMs covered 285 million lives and expected to remain stable in coming years the market has
Slide 52: Key diabetes care products remain broadly available in the USA
Investor Presentation Full year 2017 Slide 52 Key Novo Nordisk diabetes care products remain broadly available in the USA Value market shares of key % share of unrestricted market access of key Novo Nordisk products in the USA Novo Nordisk products in the USA Value market Victoza® NovoLog® Levemir®
Slide 53: Leadership in the European insulin market
Investor Presentation Full year 2017 Slide 53 Sustained leadership position in the European modern and new-generation insulin market European modern insulin and new-generation European insulin market by segment insulin volume market shares Device penetration MI and NGI penetration Novo Nordisk Sanof
Slide 54: Stable insulin leadership in Region AAMEO
Investor Presentation Full year 2017 Slide 54 Stable insulin leadership position in Region AAMEO comprising Africa, Asia, Middle-East and Oceania Region AAMEO modern and new-generation Region AAMEO insulin market by segment insulin volume market shares Device penetration MI and NGI penetration Novo
Slide 55: Solid insulin market leadership in Region Japan & Korea
Investor Presentation Full year 2017 Slide 55 Solid insulin market leadership position in Region Japan & Korea Japan & Korea modern and new-generation Japan & Korea insulin market by segment insulin volume market shares Device penetration MI and NGI penetration Novo Nordisk Sanofi Eli Lilly tMU CAGR
Slide 56: Solid Tresiba performance strengthens basal insulin share in Japan
Investor Presentation Full year 2017 Slide 56 Solid Tresiba® performance strengthens basal insulin market share in Japan Japanese basal value market shares Japanese total insulin value market shares Tresiba® Levemir® glargine U100 glargine U300 Novo Nordisk Eli Lilly Sanofi NPH biosimilar glargine U
Slide 57: Solid volume growth in the Chinese insulin market
Investor Presentation Full year 2017 Slide 57 Solid volume growth in the Chinese insulin market Chinese insulin market by segment Chinese insulin volume market shares Device penetration Modern insulin penetration Novo Nordisk Eli Lilly Tonghua Dongbao tMU Penetration Sanofi Gan & Lee Other CAGR volu
Slide 58: Continued value growth in the Chinese long-acting insulin segment
Investor Presentation Full year 2017 Slide 58 Continued value growth in the Chinese long-acting insulin segment Chinese insulin market by segment Chinese total insulin value market shares Device penetration Modern insulin penetration Novo Nordisk Eli Lilly Tonghua Dongbao bDKK Penetration Sanofi Gan
Slide 59: Strengthened insulin volume market share in Region Latin America
Investor Presentation Full year 2017 Slide 59 Strengthened insulin volume market share in Region Latin America Latin America modern and new-generation Latin America insulin market by segment insulin volume shares Device penetration Modern insulin penetration Novo Nordisk Eli Lilly Sanofi tMU CAGR vo
Slide 60: Tresiba sets a new standard for basal insulin initiation
Investor Presentation Full year 2017 Slide 60 Tresiba® sets a new standard for basal insulin initiation by lowering the risk of hypoglycaemia Tresiba® is a leap on the innovation ladder by Tresiba® has consistently demonstrated further reducing nocturnal hypoglycaemia relevant reductions in severe h
Slide 61: Competitive Tresiba label across all three triad markets
Investor Presentation Full year 2017 Slide 61 Competitive Tresiba® label across all three triad markets Tresiba® label characteristics in triad markets US Europe Japan • Duration of action up to 26 hours in • Half-life of 25 hours and duration of • Duration of action beyond 42 hours Japanese patient
Slide 62: GLP-1 effect dependent on level of blood glucose
Investor Presentation Full year 2017 Slide 62 GLP-1 effect dependent on level of blood glucose GLP-1 mechanism of action when blood GLP-1 lowers blood glucose in patients sugar levels increase with type 2 diabetes • Increases insulin secretion in the pancreas Glucose Type 2 diabetes patients, no GLP
Slide 63: The GLP-1 segment accounts for 12% of global diabetes care market value
Investor Presentation Full year 2017 Slide 63 The GLP-1 segment accounts for 12% of the global diabetes care market value GLP-1 value and patient share of the total Global GLP-1 market diabetes care market GLP-1 value Victoza® dulaglutide Share of total Share of total GLP-1 value share of total diab
Slide 64: Strong GLP-1 volume growth in all regions
Investor Presentation Full year 2017 Slide 64 Strong GLP-1 volume growth in all regions Regional GLP-1 volume growth Regional GLP-1 volume market split North America Region Europe Region AAMEO North America Region Europe Region AAMEO Region China Region J&K Region LATAM Region China Region J&K Regio
Slide 65: Victoza maintains a 14% value market share
Investor Presentation Full year 2017 Slide 65 Victoza® maintains a 14% value market share in the GLP-1, SGLT-2 and DPP-IV segment Segment value Share of segment value growth Segment value market shares DKK Victoza® Other GLP-1 SGLT-2 DPP-IV billion 250 100% 100% 12% 12% 200 80% 80% CAGR1 value: 26.1
Slide 66: GLP-1 patients primarily switch from OADs
Investor Presentation Full year 2017 Slide 66 GLP-1 patients primarily switch from OADs and untapped potential is large with many OAD patients not in control GLP-1 source of business Share of patients on OADs achieving (new-to-brand prescription market share) HbA1c below 7% in major European countri
Slide 67: Significant growth in GLP-1 market with leading share for Victoza
Investor Presentation Full year 2017 Slide 67 Significant growth in GLP-1 market with leading market share for Victoza® Global GLP-1 market value and share of total Victoza® sales and GLP-1 value market share diabetes care market value leading in all regions Victoza® dulaglutide exenatide Victoza® G
Slide 68: Ambition for Ozempic to become leading weekly GLP-1
Investor Presentation Full year 2017 Slide 68 Ambition for Ozempic® to become leading weekly GLP-1, with daily GLP-1 use shifting to oral semaglutide Promotional focus to shift from Victoza® Aim for Ozempic® and oral semaglutide towards Ozempic® as market access emerges to replace Victoza® as market
Slide 69: GLP-1 segment in North America
Investor Presentation Full year 2017 Slide 69 The GLP-1 segment accounts for 14% of total diabetes care market value in North America North America GLP-1 market Key observations for Victoza® in the US market GLP-1 value Victoza® dulaglutide Share of total in bDKK exenatide other diabetes care • Vict
Slide 70: GLP-1 segment in Europe
Investor Presentation Full year 2017 Slide 70 The GLP-1 segment accounts for around 11% of total diabetes care market value in Europe European GLP-1 market Victoza® value market share in Europe GLP-1 value Victoza® dulaglutide Share of total GLP-1 value Victoza® dulaglutide in bDKK exenatide other d
Slide 71: GLP-1 segment in Region AAMEO
Investor Presentation Full year 2017 Slide 71 The GLP-1 segment accounts for 3% of total diabetes care market value in Region AAMEO Region AAMEO GLP-1 market Victoza® value market share in Region AAMEO GLP-1 value Victoza® dulaglutide Share of total GLP-1 value Victoza® dulaglutide in bDKK exenatide
Slide 72: GLP-1 segment in Region China
Investor Presentation Full year 2017 Slide 72 The GLP-1 segment accounts for around 1% of the total diabetes care market value in Region China China GLP-1 market Victoza® value market share in China GLP-1 value Victoza® exenatide Share of total GLP-1 value Victoza® exenatide in bDKK diabetes care ma
Slide 73: GLP-1 segment in Region Japan & Korea
Investor Presentation Full year 2017 Slide 73 The GLP-1 segment accounts for around 5% of the total diabetes care market in Region Japan & Korea Japan & Korea GLP-1 market Victoza® value market share in Japan & Korea GLP-1 value Victoza® dulaglutide Share of total GLP-1 value Victoza® dulaglutide in
Slide 74: Strong Victoza market leadership in Region Latin America
Investor Presentation Full year 2017 Slide 74 Strong Victoza® market leadership in Region Latin America Latin America GLP-1 market Victoza® value market share in Latin America GLP-1 value Victoza® dulaglutide Share of total GLP-1 value Victoza® dulaglutide in bDKK exenatide other diabetes care marke
Slide 75: SUSTAIN phase 3a trials with semaglutide successfully completed
Investor Presentation Full year 2017 Slide 75 SUSTAIN phase 3a trials with semaglutide successfully completed SUSTAIN 1 2 3 4 5 6 Baseline 8.1% 8.1% 8.3% 8.2% 8.4% 8.7% 0.0 -0.1 -0.5 Change in -0.8 -0.4 -0.9 HbA1c (%) -1.1 -1.3 -1.2 -1.4 -1.4 -1.6 -1.5 -1.5 * -1.6 * -1.6 * * * -1.8 * * * * * * Basel
Slide 76: Semaglutide superiority vs dulaglutide in SUSTAIN 7
Investor Presentation Full year 2017 Slide 76 Semaglutide demonstrated superiority on both glucose control and weight loss vs dulaglutide in SUSTAIN 7 trial dulaglutide 0.75 mg dulaglutide 1.5 mg semaglutide 0.5 mg semaglutide 1.0 mg HbA1c (%) Weight loss (kg) 8.5 0.0 8.0 -2.3 kg -2.0 -3.0 kg 7.5 7.
Slide 77: Oral semaglutide reduced HbA1c and body weight in phase 2 trial
Investor Presentation Full year 2017 Slide 77 Oral semaglutide reduced HbA1c and body weight in a 26-week phase 2 trial in type 2 diabetes HbA1c reduction from a mean baseline of 7.9% Weight loss from a mean base line of 92 kg Placebo Sema 2.5 mg Sema 5 mg Sema 10 mg Sema 20 mg Sema 40 mg Sema 1 mg
Slide 78: Preparation of global filing of oral semaglutide expected during 2019
Investor Presentation Full year 2017 Slide 78 Preparation of global filing of oral semaglutide expected during 2019 pending successful completion of phase 3 trials 2018 2018 2018 2018 2016 2017 Q11 Q21 Q31 Q41 2019 2020+ PIONEER 1: Monotherapy PIONEER 2: vs empagliflozin PIONEER 3: vs sitagliptin PI
Slide 79: Competitive USA label for Ozempic
Investor Presentation Full year 2017 Slide 79 Competitive USA label for Ozempic® Ozempic® approved in the USA • Ozempic® is indicated as an adjunct to diet and exercise to improve glycaemic control in adults with Profile type 2 diabetes • Ozempic® is approved for use in two therapeutic dosages, 0.5
Slide 80: Obesity
Investor Presentation Full year 2017 Slide 80 Financials Obesity
Slide 81: Obesity is a chronic disease that requires treatment
Investor Presentation Full year 2017 Slide 81 Obesity is a chronic disease that requires treatment The set-point theory portrays how metabolic The body fights weight loss for changes affect the ability to lose weight people with obesity • The body “remembers” its highest body weight and defends Diet
Slide 82: Treatment rate is low and requires a change of mindset
Investor Presentation Full year 2017 Slide 82 Treatment rate is low and an increase requires a change of mindset and physician engagement Only 2% of the 650 million people with obesity are treated with prescription medication Key barriers to effective obesity management 650 million • Belief that obe
Slide 83: Healthcare cost associated with obesity expected to increase
Investor Presentation Full year 2017 Slide 83 The healthcare cost associated with obesity expected to increase Global healthcare costs related to obesity Increase in healthcare costs primarily driven expected to increase by 50% by 2025 by obesity-related comorbidities • Today, 650 million people hav
Slide 84: Saxenda now launched in 25 countries
Investor Presentation Full year 2017 Slide 84 Saxenda® now launched in 25 countries Saxenda® value share of anti-obesity medications in selected countries Countries with highest Saxenda® sales in 20171 Mexico Australia USA Canada DKK Saxenda® value market share Germany Italy Brazil Denmark million 5
Slide 85: Saxenda has rapidly grown value market share
Investor presentation Full year 2017 Slide 85 Saxenda® has rapidly grown value market share, but market development efforts are required to expand the market Despite strong Saxenda® growth, US obesity Novo Nordisk is investing in overcoming the care market remains small at USD ~700 million barriers
Slide 86: The obesity pipeline
Investor Presentation Full year 2017 Slide 86 The obesity pipeline consists of projects addressing both appetite reduction and energy expenditure How to address obesity from a medical perspective Novo Nordisk obesity products and pipeline Projects: Status: 2018 expected: Saxenda® Launched Weight Wei
Slide 87: Semaglutide demonstrated unprecedented weight loss in phase 2 obesity trial
Investor Presentation Full year 2017 Slide 87 Semaglutide demonstrated unprecedented weight loss in 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 sema 0.05 mg sema 0.1 mg • Participants in the highest dose
Slide 88: Biopharm
Slide 88 Biopharm ADMIRE MUSHURWA, UK Admire has haemophilia A with inhibitors
Slide 89: Biopharm R&D efforts
Investor Presentation Full year 2017 Slide 89 Biopharm R&D efforts reflect Novo Nordisk’s commitment to satisfy unmet patient needs Aim to develop subcutaneous haemophilia products and long-acting growth hormone Novo Nordisk Biopharm portfolio Haemophilia Growth hormone Pursue subcutaneous delivery
Slide 90: Haemophilia is a rare disease with severe unmet medical needs
Investor Presentation Full year 2017 Slide 90 Haemophilia is a rare disease with severe unmet medical needs Number of people with haemophilia A and B Low diagnosis and treatment rates and haemophilia with inhibitors within haemophilia Number of Average percentage of people people (000) with haemophi
Slide 91: Global haemophilia market is growing by high-single digit
Investor Presentation Full year 2017 Slide 91 Global haemophilia market is growing by high-single digit Strategic positioning of Novo Nordisk’s Sales of recombinant coagulation factors haemophilia portfolio NovoSeven® Recombinate®/Advate® Idelvion® Novo Nordisk Coagil VII® Kogenate®/Helixate® Rixubi
Slide 92: ~50% of historic NovoSeven sales exposed to competition
Investor Presentation Full year 2017 Slide 92 ~50% of historic NovoSeven® sales exposed to competition, but opportunities remain in other indications Opportunities and challenges for Estimated NovoSeven® sales by indication1 NovoSeven® franchise CHwI PPx (A&B) CHwI on demand (A&B) Challenge CHwI sur
Slide 93: NovoEight volumes continue to grow
Investor Presentation Full year 2017 Slide 93 NovoEight® volumes continue to grow despite increasing penetration of long-acting FVIII products NovoEight® roll-out continues and the number NovoEight® has potential to increase volume of patients has steadily increased share in select segments and mark
Slide 94: Refixia/Rebinyn set for launch in the EU and the USA
Investor Presentation Full year 2017 Slide 94 Strong growth among long-acting haemophilia B products as Refixia®/Rebinyn® is set for launch in the EU and the USA Reported recombinant FIX sales Refixia®/Rebinyn® launched in first countries Sales Benefix® Alprolix® Idelvion® • Launched in the first EU
Slide 95: N8-GP reduces median bleeding rate in phase 3 trial
Investor Presentation Full year 2017 Slide 95 N8-GP administered every fourth day reduces median bleeding rate to 1.3 episode per year in phase 3 trial N8-GP phase 1 pharmacokinetics Pathfinder 2 headline results (phase 3) FVIII activity FVIII N8-GP • PK documented single dose half-life of 18.4 hour
Slide 96: Novo Nordisk maintains leadership within growth hormone market
Investor Presentation Full year 2017 Slide 96 Novo Nordisk maintains leadership within growth hormone market Development in global growth hormone market Growth hormone volume market share DKK MAT volume kg MAT value DKK Novo Nordisk Pfizer Sandoz billion kg Eli Lilly Merck Kgaa CAGR volume1: 7.5% 20
Slide 97: Somapacitan phase 3 extension and phase 2 trials
Investor Presentation Full year 2017 Slide 97 Phase 3 extension trial in adults and phase 2 trial in children for once-weekly somapacitan to conclude in 2018 Somapacitan IGF-1 levels similar to daily Phase 3a AGHD trial succesfully completed, Norditropin® in REAL 1 phase 3 AGHD trial phase 2 GHD rea
Slide 98: Other serious chronic diseases
Investor Presentation Full year 2017 Slide 98 Other serious chronic diseases Serious chronic diseases are often associated New therapeutic areas represent patient with diabetes and obesity populations with high unmet medical needs • 70% of people with diabetes Estimated patients Number of related de
Slide 99: Trials building on the semaglutide molecule
Investor Presentation Full year 2017 Slide 99 Trials in obesity and other serious chronic disease areas building on the semaglutide molecule Planned or ongoing trials with semaglutide Ongoing phase 2 trial with daily semaglutide vs addressing other serious chronic diseases placebo in patients with N
Slide 100: Financials
Investor Presentation Full year 2017 Slide 100 Financials Financials
Slide 101: Solid sales growth driven by the US
Investor Presentation Full year 2017 Slide 101 Solid sales growth driven by the US Reported annual sales 2013-2017 Reported annual sales split by region DKK North America Region Europe Region AAMEO billion Diabetes Biopharmaceuticals Region China Region J&K Region LATAM 120 CAGR1 7.5% 3% 3% Thousand
Slide 102: Victoza accounts for 21% of total sales in 2017
Investor Presentation Full year 2017 Slide 102 Victoza® accounts for 21% of total sales in 2017 Reported currencies Sales full year 2017 (mDKK) Sales split Sales Q4 2017 (mDKK) Sales split Tresiba® 7,327 7% 1,880 7% Levemir® 14,118 13% 3,346 12% NovoRapid® 20,025 18% 4,568 16% NovoMix® 10,257 9% 2,4
Slide 103: Solid operating profit growth driven by diabetes
Investor Presentation Full year 2017 Slide 103 Solid operating profit growth driven by diabetes Operating profit Operating profit therapy split DKK Operating profit Operating profit as % of sales Diabetes Biopharm billion Reported operating profit growth 60 Operating profit growth in local currencie
Slide 104: Higher profitability in the biopharmaceuticals segment
Investor Presentation Full year 2017 Slide 104 Higher profitability in the biopharmaceuticals segment driven by lower COGS and S&D costs Diabetes & Obesity P&L – full year 2017 Biopharmaceuticals P&L – full year 2017 DKK DKK billion Sales ratios billion Sales ratios 100 -16% 30 -27% 80 24 -14% 60 -1
Slide 105: Stable COGS level and increasing CAPEX level
Investor Presentation Full year 2017 Slide 105 Stable COGS level as % of sales and increasing CAPEX level Cost of Goods Sold (COGS) Capital Expenditure (CAPEX) DKK COGS as % of sales DKK CAPEX Expected CAPEX CAPEX as % of sales billion COGS billion 20 25% Thousands 12 10% 20% 15 10 8% 15% 8 10 6% 10
Slide 106: Long-term financial targets
Investor Presentation Full year 2017 Slide 106 Long-term financial targets support focus on profitable growth, capital allocation and cash conversion Operating profit growth in Operating profit after tax to Cash to earnings local currencies net operating assets (three-year average) Current long-term
Slide 107: Stable ownership structure
Investor Presentation Full year 2017 Slide 107 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 ba
Slide 108: Sustainable business
Investor Presentation Full year 2017 Slide 108 Sustainable business The Novo Nordisk Way The Triple Bottom Line Business Principle Financially responsible Socially Environmentally responsible responsible We build on the purpose set by our founders and live by their The Triple Bottom Line Principle,
Slide 109: Healthy, engaging and inclusive workplace
Investor Presentation Full year 2017 Slide 109 Novo Nordisk offers a healthy, engaging and inclusive workplace with development opportunities for employees Employee health and safety and engagement Novo Nordisk is committed to building a are key focus areas for management diverse and inclusive organ
Slide 110: Shaping and adapting to conditions in the business environment
Investor Presentation Full year 2017 Slide 110 Shaping and adapting to conditions in the business environment Enhancing access to affordable, high quality Cities Changing Diabetes works to insulin is a key priority bend the curve on urban diabetes 5 million people 6 product recalls with diabetes 0 f
Slide 111: Minimisation in use of scarce natural resources
Investor Presentation Full year 2017 Slide 111 Novo Nordisk prioritises minimisation in use of non-depletable or scarce natural resources Least possible use of resources, lower On track to have all production sites emissions and less waste are priorities run 100% on renewable power by 2020 Target Re