Novo Nordisk A/s Class B · OMXCOP:NOVO_B
Novo Nordisk A/s Class B — Shareholder Meeting (March 2020)
44 slides from Novo Nordisk A/s Class B's shareholder meeting presentation, Mar 26, 2020
Slide 1: Novo Nordisk Annual General Meeting
Novo Nordisk Annual General Meeting 26 March 2020 ROSHNI Roshni is living with type 1 diabetes in India
Slide 2: Novo Nordisk – Changing Diabetes
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Slide 3: Board of Directors
Annual General Meeting 2020 3 Board of Directors Helge Lund Jeppe Christiansen Brian Daniels Laurence Debroux Andreas Fibig Sylvie Grégoire Liz Hewitt Kasim Kutay Martin Mackay Anne Marie Mette Bøjer Jensen Thomas Rantzau Stig Strøbæk Kverneland
Slide 4: Executive Management
Annual General Meeting 2020 4 Executive Management President & CEO Lars Fruergaard Jørgensen People & International Biopharm Chief Financial North America Commercial Chief Science Product Supply, Organisation Operations Officer Operations Strategy & Officer Quality & IT Corporate Affairs Monique Car
Slide 5: Mogens Mogensen and Mads Melgaard, PriceWaterHouse
Mogens Mogensen and Mads Melgaard PriceWaterHouse
Slide 6: Klaus Søgaard, Gorrissen Federspiel
Klaus Søgaard Gorrissen Federspiel
Slide 7: Agenda
Annual General Meeting 2020 7 Agenda Annual General Meeting 2020 1. The Board of Directors’ oral report on the company’s activities in the past financial year 2. Presentation and adoption of the statutory Annual Report 2019 3. Remuneration, including presentation of Remuneration Report 2019, approva
Slide 8: Novo Nordisk – Changing Diabetes
; ® novo nordisk changin diabstes
Slide 9: Sustained growth opportunities – strategic aspirations for 2025
Annual General Meeting 2020 SLIDE 9 Sustained growth opportunities – strategic aspirations for 2025 Purpose and Innovation and sustainability therapeutic focus Commercial execution Financials
Slide 10: Strategic aspirations for 2025: Highlights 2019
Annual General Meeting 2020 10 Strategic aspirations for 2025 Highlights 2019 Diabetes: Patients reached with Novo Nordisk products • Rybelsus® received approval for the treatment of increased by 3% to 30 million type 2 diabetes in the US and positive EU CHMP opinion • Ozempic® approved in the US fo
Slide 11: Sales growth of 6% driven by solid sales growth in International Operations
Annual General Meeting 2020 Slide 11 11 Sales growth of 6% driven by solid sales growth in International Operations Reported sales split for FY 2019 Added reported sales and growth per therapy area and operational unit at CER Insulin GLP-1 Other diabetes International Operations North America Operat
Slide 12: Innovative GLP-1 portfolio drives sales growth and market share gains globally
Annual General Meeting 2020 Slide 12 12 Novo Nordisk innovative GLP-1 portfolio drives sales growth and market share gains globally USA GLP-1 NBRx market share USA GLP-1 TRx market growth and Reported GLP-1 sales per region in market share International Operations NN GLP-1 Ozempic® Rybelsus® NN GLP-
Slide 13: Key clinical milestones within research and development in 2019
Annual General Meeting 2019 13 Key clinical milestones within research and development in 2019 Diabetes Insulin icodec – phase 2 results Obesity PYY 1562 and PYY 1875 – phase 1 results Insulin intended for once-weekly treatment Icosema – phase 1 results Haem- Concizumab – phase 3 initiation, paused
Slide 14: Milestones expected for 2020
Annual General Meeting 2020 14 Strategic aspirations for 2025 Milestones expected for 2020 Diabetes: • Sustain FORTE phase 3 results due Q4 2020 • Insulin icodec phase 3 initiation due in the second Expansion of the US affordability offerings half of 2020 Obesity: Utilise solar energy power across a
Slide 15: Novo Nordisk – Changing Diabetes
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Slide 16: Consolidated income statement
Annual General Meeting 2020 16 Consolidated income statement DKK million 2019 2018 Change Sales 122,021 111,831 9% Cost of goods sold 20,088 17,617 14% Sales and distribution costs 31,823 29,397 8% Research and development costs 14,220 14,805 (4%) Administration costs 4,007 3,916 2% Other operating
Slide 17: Consolidated balance sheet per 31 December
Annual General Meeting 2020 17 Consolidated balance sheet per 31 December Assets Equity and liabilities (DKK million) 2019 2018 (DKK million) 2019 2018 Non-current assets 63,156 51,702 Equity 57,593 51,839 Inventories, trade receivables and other 46,981 43,429 Non-current liabilities 9,036 4,766 cur
Slide 18: Expected cash return to shareholders in 2020 and former long-term targets met
Annual General Meeting 2020 18 Expected cash return to shareholders in 2020 and former long- term financial targets have been met Annual cash return to shareholders Novo Nordisk has met its previous long-term financial targets DKK Share repurchase Interim dividend Dividend billion Free cash flow Fre
Slide 19: Financial outlook for 2020
Annual General Meeting 2020 19 Financial outlook for 2020 Expectations 5 Feb 2020 Sales growth – at CER 3% to 6% Sales growth - reported Around 1 percentage point higher Operating profit growth – at CER 1% to 5% Operating profit growth - reported Around 1 percentage point higher Financial items (net
Slide 20: Novo Nordisk – Changing Diabetes
; ® novo nordisk changin diabstes
Slide 21: Agenda item 3.1: Presentation of the Remuneration Report 2019
Annual General Meeting 2020 21 Agenda item 3.1 Presentation of the Remuneration Report 2019 Executive remuneration for 2019 DKK billion Base salary Benefits STI LTI1 70 60 92%3 50 40 30 93%3 20 10 0 Minimum Target Maximum Actual Minimum Target Maximum Actual Chief executive officer Other registered
Slide 22: Agenda item 3.2 a): Board remuneration for 2019
Annual General Meeting 2020 22 Agenda item 3.2 a) Approval of remuneration of the Board of Directors for 2019 Audit Nomination Remuneration R&D Board Committee Committee Committee Committee Multiplier DKK Multiplier DKK Multiplier DKK Multiplier DKK Multiplier DKK Chair 3.00 2,100,000 1.00 700,000 0
Slide 23: Agenda item 3.2 b): Board remuneration level for 2020
Annual General Meeting 2020 23 Agenda item 3.2 b) Approval of remuneration level for 2020 for the Board of Directors Audit Nomination Remuneration R&D Board Committee Committee Committee Committee Multiplier DKK Multiplier DKK Multiplier DKK Multiplier DKK Multiplier DKK Chair 3.00 2,160,000 1.00 72
Slide 24: Agenda item 3.3: Adoption of the Remuneration Policy
Annual General Meeting 2020 24 Agenda item 3.3 Adoption of the Remuneration Policy Background for the new Remuneration Policy – executive remuneration • New Remuneration Policy to replace current Remuneration Principles • Continuation of current approaches with no change in overall remuneration leve
Slide 25: Agenda item 3.3 - continued
Annual General Meeting 2020 25 Agenda item 3.3 - continued Adoption of the Remuneration Policy Substantive differences to the current Renumeration Principles for the executives Examples • Base salary to be adjusted given the change in pension contribution • Pension contribution reduced to the same l
Slide 26: Agenda item 3.4: Amendment of the Articles of Association
Annual General Meeting 2020 26 Agenda item 3.4 Amendment of the Articles of Association • Reference to the current Remuneration Principles to be deleted • Standard Annual General Assembly agenda to include advisory vote on the Remuneration Report LTI: Long-term cash-based incentives; STI: Short-term
Slide 27: Agenda item 4: Distribution of profit
Annual General Meeting 2020 27 Agenda item 4 Adoption of the resolution to distribute the profit according to the adopted statutory Annual Report 2019 DKK million 2019 Net profit in the parent company, Novo Nordisk A/S 39,252 Proposed appropriation Interim dividend for the year – DKK 3.00 paid in Au
Slide 28: Novo Nordisk – Changing Diabetes
; ® novo nordisk changin diabstes
Slide 29: Agenda item 5: Election of Board members
Annual General Meeting 2020 29 Agenda item 5 Election of members to the Board of Directors, including chair and vice-chair • Item 5.1 – Election of chair • Item 5.2 – Election of vice-chair • Item 5.3 – Election of other members to the Board of Directors
Slide 30: Novo Nordisk – Changing Diabetes
; ® novo nordisk changin diabstes
Slide 31: Helge Lund, Chair
Helge Lund Chair
Slide 32: Jeppe Christiansen, Vice-chair
Jeppe Christiansen Vice-chair
Slide 33: Brian Daniels, Laurence Debroux, Andreas Fibig and other candidates
Brian Daniels, Laurence Debroux, Andreas Fibig, Sylvie Grégoire, Liz Hewitt, Kasim Kutay and Martin Mackay
Slide 34: Novo Nordisk – Changing Diabetes
; ® novo nordisk changin diabstes
Slide 35: Mette Bøjer Jensen, Anne Marie Kverneland, Thomas Rantzau and Stig Strøbæk
Mette Bøjer Jensen, Anne Marie Kverneland, Thomas Rantzau and Stig Strøbæk
Slide 36: Agenda item 6: Re-appointment of auditor
Annual General Meeting 2020 36 Agenda item 6 Re-appointment of PriceWaterhouseCoopers as auditor
Slide 37: Agenda item 7: Proposals from the Board of Directors
Annual General Meeting 2020 37 Agenda item 7 Proposals from the Board of Directors • Item 7.1 – Reduction of the Company’s B share capital • Item 7.2 – Authorisation to the Board of Directors to repurchase own shares • Item 7.3 – Authorisation to the Board of Directors to increase the share capital
Slide 38: Agenda item 7.1: Reduction of B share capital
Annual General Meeting 2020 38 Agenda item 7.1 Reduction of the Company’s B share capital • Reduction of the Company’s B share capital from DKK 372,512,800 to DKK 362,512,800 by cancellation of part of the Company’s own holding of B shares at a nominal value of DKK 10,000,000 divided into 50,000,000
Slide 39: Agenda item 7.2: Authorisation to repurchase own shares
Annual General Meeting 2020 39 Agenda item 7.2 Authorisation to the Board of Directors to repurchase own shares • Authorisation of the Board of Directors, until the Annual General Meeting in 2021, to allow the Company to repurchase own shares of up to 10% of the share capital, subject to a holding l
Slide 40: Agenda item 7.3: Authorisation to increase the share capital
Annual General Meeting 2020 40 Agenda item 7.3 Authorisation to the Board of Directors to increase the share capital • Extend the Board of Directors' authorisations in Article 5.3 (issue of new shares to employees without pre-emptive rights for shareholders) for a period of one year until 26 March 2
Slide 41: Agenda item 7.4: Donation to the World Diabetes Foundation
Annual General Meeting 2020 41 Agenda item 7.4 Approval of the donation to the World Diabetes Foundation • Replacement of the remaining 5 years of the donation with a new 5-year donation for the period 2020-2024, and to calculate the yearly donations under this as 0.085% of the total diabetes net sa
Slide 42: Agenda item 8.1: Shareholder proposal from Frank Aaen
Annual General Meeting 2020 42 Agenda item 8.1 Shareholder proposal from Frank Aaen The shareholder proposes that Novo Nordisk in the annual report discloses the ratio between the CEO’s as well as the Executive Management’s average remuneration and the remuneration of an average employee and the med
Slide 43: Agenda item 9: Any other business
Annual General Meeting 2020 43 Agenda item 9 Any other business
Slide 44: Novo Nordisk – Changing Diabetes
; ® novo nordisk changin diabstes