Novo Nordisk A/s Class B · OMXCOP:NOVO_B
Novo Nordisk A/s Class B — Non-Deal Roadshow (April 2004)
68 slides from Novo Nordisk A/s Class B's roadshow presentation, Apr 6, 2004
Slide 1: Novo Nordisk: A focused healthcare company
Novo Nordisk A focused healthcare company - committed to building a sustainable business Investor presentation, London, April 2004
Slide 2: Agenda
Agenda • Novo Nordisk in brief • The Novo Nordisk way of doing business • Taking responsibility • Acting on our commitments • Accounting for our performance • Shaping our future Slide No. 2 • Investor presentation, London • 6 April 2004
Slide 3: Novo Nordisk in brief
Novo Nordisk in brief Slide No. 3 • Investor presentation, London • 6 April 2004
Slide 4: Novo Group ownership structure
Novo Group ownership structure Novo Nordisk Foundation 26.7% of shares Novo A/S 70.4% of votes B-shareholders Novo Nordisk A/S Novo Nordisk Affiliates Service Companies Slide No. 4 • Investor presentation, London • 6 April 2004
Slide 5: Sales in 2003 - by segment and region
Sales in 2003 - by segment and region Diabetes care Biopharmaceuticals* International Japan & Operations Oceania Europe +9% (+21%) +2% (+11%) +10% (+13%) Europe Japan & +1% (+3%) Oceania -6% (+3%) International Operations +2% (+18%) North America North America +5% (+24%) +12% (+33%) Total DKK 18,723
Slide 6: Global expansion
Global expansion Production Sales & Marketing New affiliates New offices in Venezuela, Chile, Iran, Iraq and Tunisia in 2004 Slide No. 6 • Investor presentation, London • 6 April 2004
Slide 7: The Novo Nordisk way of doing business
The Novo Nordisk way of doing business • Taking responsibility • Acting on our commitments • Accounting for our performance Slide No. 7 • Investor presentation, London • 6 April 2004
Slide 8: Taking responsibility
Taking responsibility ”To me, Novo Nordisk’s promise of being there is about being responsible, committed and accountable. To people whose healthcare needs we serve, to employees, to our shareholders, and to society at large.” Lars Rebien Sørensen, president and CEO Slide No. 8 • Investor presentati
Slide 9: Our sustainability vision
Our sustainability vision To position Novo Nordisk as the leader in the fight against diabetes and a model for 21st century business: a truly sustainable company, a preferred business partner and one that is recognised as a pharmaceutical company with a heart. Slide No. 9 • Investor presentation, Lo
Slide 10: Pharma business model under pressure
Pharma business model under pressure Clinical trials Patents GMOs Corporation Pricing scientists/MDs Research & IPR, Quality Production Marketing Sales Development & Regulatory Animal Regulatory Resource Ethics Generics testing processess consumption Slide No. 10 • Investor presentation, London • 6
Slide 11: Dealing with dilemmas
Dealing with dilemmas Slide No. 11 • Investor presentation, London • 6 April 2004
Slide 12: Our guiding principles
Our guiding principles Slide No. 12 • Investor presentation, London • 6 April 2004
Slide 13: The Novo Nordisk Way of Management
The Novo Nordisk Way of Management Vision Values (Accountable, ambitious, responsible, engaged with stakeholders, open & honest, ready for change) Fundamentals Commitments (Economic, environmental and social responsibility) Methodology Sustainability Balanced Business Facilitations reporting Scoreca
Slide 14: Building a sustainable business
Building a sustainable business Level of integration Environmental management Strategy revisited Health and safety, bioethics Full business integration Social responsibility (incl. human rights, Embedding in the organisation access to health and diversity) Socio-economics Indicators, data and target
Slide 15: Acting on our commitments – 2003 update
Acting on our commitments – 2003 update Slide No. 15 • Investor presentation, London • 6 April 2004
Slide 16: Living our values
Living our values • Suppliers are evaluated on social and environmental performance • 2003: 31% of total purchasing value • 87.6% satisfactory performance • Novo Nordisk has joined the Business Leaders’ Initiative on Human Rights • Employees engage in TakeAction! Slide No. 16 • Investor presentation
Slide 17: Access to health
Access to health Slide No. 17 • Investor presentation, London • 6 April 2004
Slide 18: Diabetes – an emerging epidemic
Diabetes – an emerging epidemic 333 million people with diabetes expected by 2025 # of people with diabetes (million) 300 2000 250 2025 200 150 100 50 0 US Japan Europe Rest of the world Source: WHO and IDF, December 2003 Slide No. 18 • Investor presentation, London • 6 April 2004
Slide 19: Our strategy for global health
Our strategy for global health WHO priorities: Novo Nordisk’s response: Development of national healthcare strategies National Diabetes Programme and Building national DAWN healthcare capacity Best possible pricing Best possible pricing in LDCs Additional funding World Diabetes Foundation Slide No.
Slide 20: Improved diabetes care in Tanzania
Improved diabetes care in Tanzania Slide No. 20 • Investor presentation, London • 6 April 2004
Slide 21: Benefits people with diabetes and society
Benefits people with diabetes and society…. National Diabetes Programme Better Better quality E arlier health of life Earlier reatment More n os is t ess diag a re n Aw Slide No. 21 • Investor presentation, London • 6 April 2004
Slide 22: Builds sustainable competitive business advantage
.. and builds sustainable competitive business advantage t Marke U p graded & sale s e r on s& E arl i e t s i n s u li n growth Earl i e r ta b l d evices More o s is in s u lin diagn & wa re ness A Slide No. 22 • Investor presentation, London • 6 April 2004
Slide 23: Novo Nordisk’s economic stakeholder model
Novo Nordisk’s economic stakeholder model
Slide 24: Our employees
Our employees Slide No. 24 • Investor presentation, London • 6 April 2004
Slide 25: Employee initiatives
Employee initiatives • Equal Opportunities programme roll-out • 2003: 89% of targets in SVP action plans met • Women in management, ethnic minorities, compliance • Preventative health and safety work • 2003: frequency of occupational injuries down to 5.4% per million work hours (from 8.9% in 2002) •
Slide 26: Our use of animals
Our use of animals Slide No. 26 • Investor presentation, London • 6 April 2004
Slide 27: ’reduce, replace, refine’
’reduce, replace, refine’ • Lobbying for higher standards • Re-socialisation of animals • New state-of-the art facility for rodents and a new rabbit facility • 2003: 73% of animal test types removed from external and internal specifications Slide No. 27 • Investor presentation, London • 6 April 2004
Slide 28: Eco-efficiency and compliance
Eco-efficiency and compliance Slide No. 28 • Investor presentation, London • 6 April 2004
Slide 29: Trend 2000 – 2003
Trend 2000 – 2003 - Energy use per production unit 1,6 Energy efficiency index 2000 = 1,00 1,4 53% 1,2 1 0,8 2000 2001 2002 2003 Slide No. 29 • Investor presentation, London • 6 April 2004
Slide 30: Beyond compliance
Beyond compliance • Revised Environmental Strategy; 5-year perspective • Eight focus areas • Strategy for CO2 reduction (climate change) • Eco-productivity for water and energy • 2003: Water 110; energy 124 • Compliance • 2003: Breaches of regulatory limit values 105 too many • 20 accidental release
Slide 31: Accounting for our performance
Accounting for our performance Slide No. 31 • Investor presentation, London • 6 April 2004
Slide 32: Performance highlights
Performance highlights 2003 • Living our values +++ • Access to health - - • Our employees ++++ • Our use of animals ++ • Eco-efficiency and compliance ++- - + • Economic contribution +++++ * Indicators of Triple Bottom Line performance, covering six strategic areas. + = satisfactory performance, on
Slide 33: Benchmarks and ratings
Benchmarks and ratings Slide No. 33 • Investor presentation, London • 6 April 2004
Slide 34: Novo Nordisk is included in leading indices
Novo Nordisk is included in leading indices • The Dow Jones Sustainability World Indexes (DJSI World) • The European Dow Jones STOXX Sustainability Indexes (DJSI STOXX) • FTSE4Good Index • E. Capital Partners’ Ethical Index Global • Ethibel Investment Register and Ethibel Sustainability Indexes • No
Slide 35: Shaping our future
Shaping our future Slide No. 35 • Investor presentation, London • 6 April 2004
Slide 36: Future challenges
Future challenges • Respond to material issues • Define new indicators for global health initiatives, CO2 and knowledge & learning • Utilise socio-economic analyses for business- building • Measure impacts in financial terms • Be the business case • Keep up high performance and high level of ambitio
Slide 37: Rationales for scenario planning
Rationales for scenario planning • Encourage creativity and broader thinking • Explore how the future may affect our business • Avoid being taken by surprise • Strengthen our ability to spot, interpret and act on early signals of change • Make planning processes more holistic • Be willing to experim
Slide 38: Diabetes 2020 – a structured process
Diabetes 2020 – a structured process Slide No. 38 • Investor presentation, London • 6 April 2004
Slide 39: Selected forecast topics
Diabetes 2020 Selected forecast topics Corporate social The economy responsibility • Reporting and accountability • Consumerism • Consumer power • Globalism • Investor pressure • Science and technology • Corporations and politics • From sick care to health care • Stakeholder partnerships • Stakehold
Slide 40: Scenario – ’Utopia’
Diabetes 2020 Scenario 3 – ’Utopia’ • The economy • Nutrition, culture • Corporate social responsibility • Healthcare delivery and stakeholder roles • Diabetes advances • Business forces & models Slide No. 40 • Investor presentation, London • 6 April 2004
Slide 41: The case for sustainability and business development
The case for sustainability and business development • Living the values • Supporting innovation • Earning trust • Managing risks • Gaining leadership • Attracting and motivating employees • Growing customer loyalty • Building strategic • Ensuring good governance partnerships • Performing beyond com
Slide 42: Building a sustainable business
Building a sustainable business Dealing with the key issues is effective risk management… …making sustainability thinking part of everyday business practice offers new opportunities. Slide No. 42 • Investor presentation, London • 6 April 2004
Slide 43: Investor information
Investor information Share information Contacts Novo Nordisk’s B shares are Novo Nordisk A/S listed on the stock exchanges Investor Relations Novo Allé, DK2880 Bagsværd in Copenhagen and London. Fax (+45) 4443 6633 Its ADRs are listed on the Peter Haahr New York Stock Exchange Tel (direct): (+45) 4
Slide 44: Appendix
Appendix Slide No. 44 • Investor presentation, London • 6 April 2004
Slide 45: Corporate governance issues
Corporate governance issues • Ownership structure • Articles of Association • Board of Directors • Remuneration and incentive structure • Internal control and audits • Audit Committee • Organisational audits • Group Internal Audit • External financial audit • Assurance of Sustainability Report Slide
Slide 46: Risk management
Risk management • Risk Management Committee • High-level risk areas • Corporate ethics and human resources • Development of new drugs • Manufacturing and quality • Competition • Security, litigation and financial risks Slide No. 46 • Investor presentation, London • 6 April 2004
Slide 47: Good manufacturing practice
Good manufacturing practice • Quality Mindset • ”Everyone must continuously improve the quality of their work” • ISO 9001/9002 • ISO 14001 • NN has passed all current FDA inspections and never received a warning letter Slide No. 47 • Investor presentation, London • 6 April 2004
Slide 48: Litigation
Litigation • Efficient Customer Complaints Centre • reports to national authorities • Monitoring of industry litigation issues • Predetermined handling of product liability • average of 50 customer complaints per year submitted to Corporate Legal Affairs • Proactive settlement policy Slide No. 48 •
Slide 49: Medical ethics: Clinical trials – the key issues
Medical ethics: Clinical trials – the key issues • Informed consent • Authorities • Indemnity and payment issues • Competencies • Drug supply Slide No. 49 • Investor presentation, London • 6 April 2004
Slide 50: Novo Nordisk measures
Novo Nordisk measures • Global SOP system according to cGCP and Helsinki Declaration • Centres of excellence – trial units • 15% of clinical trials in developing countries • Training of investigators, dialogue with authorities • Patient information • Audits • only minor issues reported • Training of
Slide 51: Medical ethics: Stem cell research – key issues
Medical ethics: Stem cell research – key issues • Use of human embryos • Ethical guidelines and regulation • National legislation and public control • Reproductive cloning Slide No. 51 • Investor presentation, London • 6 April 2004
Slide 52: Medical ethics: Novo Nordisk’s positions
Medical ethics: Novo Nordisk’s positions • In vitro fertilised embryos • stem cell transplantation for type 1 diabetes • reduced need for animal experimentation • Investments in research partnership with US National Institutes of Health • Supports Danish and EU regulation • Supports biobanks and inc
Slide 53: A model for sustainable diabetes care in developing countries
A model for sustainable diabetes care in developing countries Slide No. 53 • Investor presentation, London • 6 April 2004
Slide 54: Defeating diabetes in China
Defeating diabetes in China ”We want to improve the conditions for people with diabetes, and you can’t do that by just peddling your product.” Thorkil Kastberg Christensen Slide No. 54 • Investor presentation, London • 6 April 2004
Slide 55: Diabetes in China
Diabetes in China • The hard facts: • 1.3 billion people • 30 to 40 million are estimated to have Type 2 diabetes • Diagnosis rate for Type 2 is 10-15% (50% in Europe) • GDP growth at 7% (3% in OECD) Slide No. 55 • Investor presentation, London • 6 April 2004
Slide 56: Diabetes in China
Diabetes in China • The prevalence of diabetes increased nearly 3-folds in China from 1980 to 1994 • The current estimate by the Chinese Diabetes Association is that China has 30 to 40 million diabetics plus an additional 30 million IGT individuals • The Shanghai Diabetes Association reports that th
Slide 57: Insulin consumption per capita per year
Insulin consumption per capita per year US & North Europe 200+ Rest of Europe 100-200 Japan, Hong Kong, Singapore 50 China 4 Slide No. 57 • Investor presentation, London • 6 April 2004
Slide 58: Defeating diabetes in China – Novo Nordisk’s response
Defeating diabetes in China • Novo Nordisk’s response • Presence in China since 1994 • R&D centre established in 1997 • New packaging and QA plant in 2003 (capacity 20 million units per year) • Representation in all provinces • Novo Nordisk Way of Management Slide No. 58 • Investor presentation, Lon
Slide 59: Investing in knowledge
Investing in knowledge Slide No. 59 • Investor presentation, London • 6 April 2004
Slide 60: Social investments in China
Social investments in China • Education of healthcare professionals is key • 35,000 doctors educated in past 5 years • Nurse education programmes – focus on teamwork Slide No. 60 • Investor presentation, London • 6 April 2004
Slide 61: Social investments in China
Social investments in China • Tackling people’s lack of awareness • 70 patient education centres in 47 cities => 50,000 patients per year • Greater degree of self-care – an innovative concept • First Chinese-language website on diabetes • 30,000 members of NovoCare Club • Media outreach • Sponsoring
Slide 62: Social investments in China
Social investments in China • Partnership with Ministry of Health • National Diabetes Management Programme • Aim to educate 20,000-30,000 doctors per year in 2003-2004 Slide No. 62 • Investor presentation, London • 6 April 2004
Slide 63: Environmental Strategy 2003 - 2008
Environmental Strategy 2003 - 2008 Focus areas: • Climate change initiative • Use of natural resources • Management of pollution • Ozone-depleting substances • Land use and biodiversity • Environmental legislation • Gene technology • Stakeholder engagement Slide No. 63 • Investor presentation, Londo
Slide 64: Trend 2000 – 2003
Trend 2000 – 2003 - Energy use and value created 30% 4% Slide No. 64 • Investor presentation, London • 6 April 2004
Slide 65: Influence on the environmental impact
Influence on the environmental impact ... defines the product’s potential life-cycle Research environmental impact ... determines the need for resources for Development production, identifies potential suppliers, related emissions and waste Production and ... environmentally sound design of the dist
Slide 66: Product stewardship – Impact of treatment
Product stewardship – Impact of treatment Impact = Energy input + waste generated One week of FlexPen treatment is equivalent to 10 km / 3 miles 1 km / 0.3 miles 2 km / 0.6 miles The energy/plastic material in ¾ plastic bag Slide No. 66 • Investor presentation, London • 6 April 2004
Slide 67: Supplier Responsibility Programme Key activities in 2004
Supplier Responsibility Programme Key activities in 2004 • Launch of S&E audits • Launch of programme in R&D • Launch of programme in Int’l Marketing • Launch of programme in affiliates worldwide • Launch of website for suppliers • Development and production of booklet for suppliers • Roundtable for
Slide 68: Reporting
Reporting • Environmental reporting since 1994 • Social reporting since 1998 • Integrated reporting on the Triple Bottom Line since 2001 • Independent assurance (since 2002: according to AA1000) • Pilot member of Global Reporting Initiative (since 2002: according to GRI) • Subscriber to Global Compa