Novo Nordisk A/s Class B · OMXCOP:NOVO_B
Novo Nordisk A/s Class B — Q1 2012 Earnings Presentation
84 slides from Novo Nordisk A/s Class B's earnings presentation, April 2012
Slide 1: Investor presentation: First three months of 2012
Investor Presentation Investor presentation First three months of 2012
Slide 2: Forward-looking statements
Investor Presentation First three months of 2012 Slide no 2 Forward-looking statements Novo Nordisk‟s reports filed with or furnished to the US Securities and Exchange Commission (SEC), including this document as well as the company‟s Annual Report 2011 and Form 20-F, both expected to be filed with
Slide 3: Content
Investor Presentation First three months of 2012 Slide no 3 Content Highlights and key events Sales update R&D update Financials and outlook
Slide 4: Highlights – first three months of 2012
Investor Presentation First three months of 2012 Slide no 4 Highlights – first three months of 2012 Sales development • Sales increased by 10% in local currencies driven by modern insulins and Victoza® • Victoza® grew 76% in local currencies and reached DKK 2 billion in sales • Healthcare reforms im
Slide 5: Modern insulins and Victoza continue to drive growth
Investor Presentation First three months of 2012 Slide no 5 Modern insulins and Victoza® continue to drive growth – first three months of 2012 Sales as reported Growth analysis Other Local currencies Growth Share of Norditropin® (3%) growth +8% 3% Modern insulins 14% 61% 8% Human insulins (1%) (1%)
Slide 6: Rebound in insulin sales growth rate
Investor Presentation First three months of 2012 Slide no 6 Rebound in insulin sales growth rate Novo Nordisk global quarterly insulin sales Key observations MAT growth rate Growth Elements driving rebound in insulin growth rate Quarter vs. same quarter previous year rate… • Annualisation of US heal
Slide 7: Encouraging script data on all modern insulin products in the US
Investor Presentation First three months of 2012 Slide no 7 Encouraging script data on all modern insulin products in the US US TRx and NBRx script volume market shares NovoLog® NovoLog® Mix Levemir® 80% 80% 80% segment (modern and human insulin) Script volume market share of total 70% TRx NBRx 70%
Slide 8: North America continues to drive sales growth
Investor Presentation First three months of 2012 Slide no 8 North America continues to drive sales growth – first three months of 2012 Sales as reported Growth analysis Japan & Korea Local currencies Growth Share of 0% growth Region China North America 17% 64% +17% 8% Europe 0% 1% 9% North America I
Slide 9: Novo Nordisk continues to expand leadership position within diabetes care
Investor Presentation First three months of 2012 Slide no 9 Novo Nordisk continues to expand leadership position within diabetes care Global diabetes care market Global diabetes care by treatment class value market share DKK billion Novo Nordisk Lilly BMS GLP-1 Insulin OAD Takeda Merck Novartis Tota
Slide 10: Victoza continues to exhibit solid underlying growth
Investor Presentation First three months of 2012 Slide no 10 Victoza® continues to exhibit solid underlying growth Reported Victoza® sales Victoza® Q1 2012 sales split per region DKK North America Europe China billion Int. Operations Japan & Korea 1% 5% 8% 25% 61% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Sales
Slide 11: Continued expansion of the US GLP-1 market
Investor Presentation First three months of 2012 Slide no 11 Continued expansion of the US GLP-1 market Key observations for Victoza® US GLP-1 market expansion in the US market GLP-1 TRx scripts (thousands) GLP-1 % of diabetes market value of TRx retail value (right axis) • 70% of new patients are n
Slide 12: Victoza continues to expand the GLP-1 class in key European markets
Investor Presentation First three months of 2012 Slide no 12 Victoza® continues to expand the GLP-1 class in key European markets Development in key European markets following Victoza® launch Germany UK France Market value*: DKK 10 billion Market value*: DKK 5 billion Market value*: DKK 7 billion Di
Slide 13: Research and Development update
Investor Presentation First three months of 2012 Slide no 13 Research and Development update Diabetes care and obesity • Tresiba® and Ryzodeg® have now been submitted in US, EU, Japan, Switzerland, Canada, South Africa, India, Australia, Brazil and Mexico. Tresiba® has also been submitted in Russia
Slide 14: Two clinical trials comparing Tresiba and insulin glargine published in the Lancet
Investor Presentation First three months of 2012 Slide no 14 Two clinical trials comparing Tresiba® (insulin degludec) and insulin glargine published in the Lancet The Lancet papers Excerpts from editorial ”Fear of hypoglycaemia or actual hypoglycaemia is commonly the greatest barrier to achievement
Slide 15: New position statement of the ADA and EASD on management of hyperglycaemia
Investor Presentation First three months of 2012 Slide no 15 New position statement of the ADA and EASD on management of hyperglycaemia in type 2 diabetes New type 2 diabetes treatment algorithm Key observations Mono- • Focus on consequences of frequent MET therapy hypoglycaemia including: MET + • W
Slide 16: Public Citizen's petition and Novo Nordisk's response
Investor Presentation First three months of 2012 Slide no 16 Public Citizen’s petition and Novo Nordisk’s response Public Citizen’s petition Novo Nordisk observations on Victoza® • Highlighted preclinical and clinical data known by the FDA upon approval of Victoza® • Two completed preclinical studie
Slide 17: Financial results – first three months of 2012
Investor Presentation First three months of 2012 Slide no 17 Financial results – first three months of 2012 DKK million Q1 2012 Q1 2011 Change Sales 17,751 15,693 13% Gross profit 14,348 12,576 14% Gross margin 80.8% 80.1% Sales and distribution costs 4,850 4,260 14% Percent of sales 27.3% 27.1% Res
Slide 18: US dollar and Japanese Yen currently above 2011 average
Investor Presentation First three months of 2012 Slide no 18 US dollar and Japanese Yen currently above 2011 average 650 Spot rates Quarterly average Annual average Currency 2011 2012 Current assumptions1 average average rate2 600 USD/DKK USD 536 567 565 550 JPY 6.73 7.12 6.96 CNY 83 90 90 500 GBP 8
Slide 19: Financial outlook 2012
Investor Presentation First three months of 2012 Slide no 19 Financial outlook 2012 Expectations Previous expectations 27 April 2012 2 February 2012 Sales growth - local currencies 8-11% 7-11% Around 4 percentage points higher than Around 4 percentage points higher than Sales growth - reported growt
Slide 20: Closing remarks
Investor Presentation First three months of 2012 Slide no 20 Closing remarks Solid market performance Promising pipeline • +10% annual diabetes care market growth • The only company with two new generation driven by diabetes prevalence1 insulins submitted for approval • 25% market share in diabetes
Slide 21: Investor information
Investor Presentation First three months of 2012 Slide no 21 Investor 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 St
Slide 22: Appendix
Investor Presentation First three months of 2012 Slide no 22 Appendix 1. Novo Nordisk at a glance 2. Diabetes 3. Biopharmaceuticals 4. Financials
Slide 23: Novo Nordisk at a glance
Investor Presentation First three months of 2012 Slide no 23 Novo Nordisk at a glance The core equity story Global leader in diabetes care Global insulin market share: 50% • A focused pharmaceutical company with leading positions in diabetes, haemophilia and hGH Europe: • Double digit top line growt
Slide 24: Novo Nordisk has leading positions in diabetes, haemophilia and growth disorders
Investor Presentation First three months of 2012 Slide no 24 Novo Nordisk has leading positions in diabetes, haemophilia and growth disorders Diabetes care Haemophilia hGH DKK Market value DKK Market value DKK Market value billion Novo Nordisk market share billion Novo Nordisk market share billion N
Slide 25: Double digit top line growth driven by diabetes pandemic
Investor Presentation First three months of 2012 Slide no 25 Double digit top line growth driven by diabetes pandemic Novo Nordisk reported quarterly The number of people with diabetes sales by therapy continues to grow DKK Million billion Diabetes care Haemophilia Growth disorders Other people Nort
Slide 26: Diabetes pandemic is fuelled by growing rates of obesity
Investor Presentation First three months of 2012 Slide no 26 Diabetes pandemic is fuelled by growing rates of obesity US CDC data on obesity and diabetes prevalence among adults 1994 2000 2009 Obesity (BMI ≥30 kg/m2) No Data <14.0% 14.0-17.9% 18.0-21.9% 22.0-25.9% >26.0% Diabetes No Data <4.5% 4.5-5
Slide 27: Insulin is the ultimate care for people with diabetes
Investor Presentation First three months of 2012 Slide no 27 Insulin is the ultimate care for people with diabetes Progression of type 2 diabetes and Distribution of patients and value across treatment intensification treatment classes Tablets GLP-1 Insulin Diet and excercise -cell function Tablets
Slide 28: Novo Nordisk is uniquely positioned with a full portfolio of modern insulins
Investor Presentation First three months of 2012 Slide no 28 Novo Nordisk is uniquely positioned being the only company with a full portfolio of modern insulins Brand share Sales of segment Patent Brand name Type Launch 2011 Feb 2012 expiration Fast-acting EU: 1999 12.8 bDKK EU: 2017* 48% insulin US
Slide 29: Significant growth opportunities fuelled by strong R&D pipeline
Investor Presentation First three months of 2012 Slide no 29 Significant growth opportunities fuelled by strong R&D pipeline Diabetes care NN1953 – oral NN1218 – ultra Tresiba®/ insulin fast acting insulin Ryzodeg® NN9926 – oral Liraglutide depot IdegLira GLP-1 NN9924 – oral Liraglutide for Semaglut
Slide 30: Growth opportunities supported by strong global presence in sales and manufacturing
Investor Presentation First three months of 2012 Slide no 30 Growth opportunities supported by strong global presence in both sales and manufacturing FTEs in sales regions excl. headquarter and manufacturing Global manufacturing setup • API production North America: ~4,200 • Formulation & filling •
Slide 31: High barriers to entry in biologics
Investor Presentation First three months of 2012 Slide no 31 High barriers to entry in biologics Novo Nordisk position is protected by ...and significant barriers to entry value chain setup, patents... for biosimilar players Unique value Chain position Patent protection1 Research & Development • Nee
Slide 32: Operating profit growth targeting 15%
Investor Presentation First three months of 2012 Slide no 32 Operating profit growth targeting 15%, driven by gross margin improvements and operational leverage The fundamental drivers of Operating profit operating profit growth DKK billion Gross margin improvement • On-going productivity improvemen
Slide 33: Operating profit after tax to net operating assets, and free cash flow to earnings
Investor Presentation First three months of 2012 Slide no 33 Operating profit after tax to net operating assets, and Free Cash flow to earnings both targeting 90% Operating profit after tax to net operating assets and Invested capital Free cash flow DKK DKK billion billion Note: Operating profit aft
Slide 34: Cash generated is returned to shareholders in form of dividends and share buybacks
Investor Presentation First three months of 2012 Slide no 34 Cash generated is returned to shareholders in form of dividends and share buybacks Dividend and payout ratio Share repurchases programmes DKK Payout DKK Share repurchase programme 2007-2010 Dividend paid Payout ratio billion ratio billion
Slide 35: Diabetes
Investor Presentation First three months of 2012 Slide no 35 Diabetes
Slide 36: Diabetes – the inability to manage blood sugar levels appropriately
Investor Presentation First three months of 2012 Slide no 36 Diabetes – the inability to manage blood sugar levels appropriately Definition Insulin secretion profile ‟A metabolic disorder of multiple aetiology characterised by chronic hyperglycaemia with disturbances of carbohydrate, fat and protein
Slide 37: UKPDS: Tight glycaemic control reduces risk of complications
Investor Presentation First three months of 2012 Slide no 37 UKPDS: Tight glycaemic control reduces risk of micro- and macro-vascular complications UKPDS 10 year follow-up: Risk reduction by lowering HbA1c by 1% Legacy effect of tight glycaemic control Diabetes- Peripheral related Myocardial Microva
Slide 38: Insulin – a hormone enabling blood sugar to enter cells
Investor Presentation First three months of 2012 Slide no 38 Insulin – a hormone enabling blood sugar to enter cells The aim of insulin therapy is to recreate Insulin enables food to become energy normal blood insulin profile • Facilitates uptake of blood sugar into cells 70 Short-lived, rapidly gen
Slide 39: Global insulin volume growth remains above 6%
Investor presentation First six months of 2011 Slide no 39 Global insulin volume growth remains above 6% Regional insulin volume growth Regional insulin volume market shares North America China IO North America China Europe Japan & Korea Europe International Operations 6% Japan & Korea World 17% 4%
Slide 40: The insulin market is comprised of three segments
Investor Presentation First three months of 2012 Slide no 40 The insulin market is comprised of three segments Global insulin volume market by segments Action profiles of insulins tMU CAGR volume: 7.5% CAGR value*: 14.1% Fast acting 33% Fast acting 32% Premix 30% Premix 34% Long acting 37% Long acti
Slide 41: Sustained double-digit insulin market growth
Investor Presentation First three months of 2012 Slide no 41 Sustained double-digit insulin market growth Global insulin market growth The fundamental growth drivers 2007-2012 of the insulin market DKK billion CAGR: CAGR: Volume 6.7%* 14.1%* • Prevalence of diabetes CAGR: 20.8 • Rising diagnosis rat
Slide 42: Value growth driven by conversion to modern insulins and better devices
Investor Presentation First three months of 2012 Slide no 42 Value growth driven by conversion to modern insulins and better devices 2007 North America Japan & Korea China 2012 Europe IO Global Modern insulin volume penetration Device volume penetration Note: Monthly MAT Feb 2012, volume figures. Si
Slide 43: Solid insulin growth across diverse regions
Investor Presentation First three months of 2012 Slide no 43 Solid insulin growth across diverse regions Market Market volume Novo Nordisk volume value size & growth composition market share 16% Basal Novo Nordisk 49.8 5% 6% 54.9 North America 37% 47% Fast-acting 59% 41% Rest Premix 23.8 3% 1% 24.7
Slide 44: Maintaining insulin leadership by sustaining modern insulin market share
Investor Presentation First three months of 2012 Slide no 44 Maintaining insulin leadership by sustaining modern insulin market share Novo Nordisk volume market share across insulin classes Novo Nordisk Sanofi Eli Lilly Class % of total market Human insulin Modern insulin Total insulin Market value*
Slide 45: Significant potential on the US modern insulin market
Investor Presentation First three months of 2012 Slide no 45 Still a significant potential for Novo Nordisk on the US modern insulin market US insulin market by segments US modern insulin volume market shares Modern insulin penetration tMU Penetration Novo Nordisk Sanofi Eli Lilly Device penetration
Slide 46: Solid leadership position on the European modern insulin market
Investor Presentation First three months of 2012 Slide no 46 Maintaining the solid leadership position on the European modern insulin market EU insulin market by segments EU modern insulin volume market shares Modern insulin penetration tMU Penetration Novo Nordisk Sanofi Eli Lilly Device penetratio
Slide 47: Stable leadership position on the Chinese insulin market
Investor Presentation First three months of 2012 Slide no 47 Stable leadership position on the rapidly growing Chinese insulin market China insulin market by segments China insulin volume market shares Modern insulin penetration Novo Nordisk Sanofi Eli Lilly tMU Penetration Device penetration Shangh
Slide 48: Stable leadership position in International Operations
Investor Presentation First three months of 2012 Slide no 48 Stable leadership position in International Operations International Operations insulin market by International Operations insulin volume segments market shares Modern insulin penetration Novo Nordisk Sanofi tMU Penetration Device penetrat
Slide 49: Sustained leadership position in Japan
Investor Presentation First three months of 2012 Slide no 49 Sustained leadership position in Japan Japan insulin market by segments Japan modern insulin volume market shares Modern insulin penetration Novo Nordisk Sanofi Eli Lilly tMU Penetration Device penetration CAGR volume: 3.1% CAGR value*: 10
Slide 50: Phase 3a programmes for Tresiba and Ryzodeg completed in less than 18 months
Investor Presentation First three months of 2012 Slide no 50 Phase 3a programmes for Tresiba® and Ryzodeg® completed in less than 18 months BEGINTM and BOOSTTM timeline NN1250-3579: 12 mth vs. IGlar, T2 (N=1030) NN1250-3582: 12 mth vs. IGlar, T2 (N=1006) NN1250-3583 : 12 mth vs. IGlar, T1 (N=629) NN
Slide 51: BEGIN and BOOST confirm the profiles of Tresiba and Ryzodeg
Investor Presentation First three months of 2012 Slide no 51 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 and • First basal-prandial combination product of a doubl
Slide 52: Tresiba and Ryzodeg current phase 3b trials
Investor Presentation First three months of 2012 Slide no 52 Tresiba® and Ryzodeg® current phase 3b trials Tresiba® Trial ID Comparator Purpose Participants Duration LPLV NN1250-3948 Tresiba® +NovoRapid® Victoza® add-on to Tresiba® N = 420, T2 26 weeks H2 2012 NN1250-3923 Tresiba® Compare formulatio
Slide 53: Assessment of the insulin industry
Investor Presentation First three months of 2012 Slide no 53 Assessment of the insulin industry • Suppliers Resistor Enabler for biosimilar competitor Driver Uniqueness of suppliers High Low • Customers Size of target audience Large Small Administration of drug Patients Physicians Cost pressure from
Slide 54: GLP-1 effect dependent on level of blood glucose
Investor Presentation First three months of 2012 Slide no 54 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 Type 2 diabetes patients, no
Slide 55: Victoza, the only once-daily human GLP-1 analogue for type 2 diabetes
Investor Presentation First three months of 2012 Slide no 55 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 • Re
Slide 56: The global GLP-1 market continues to expand
Investor Presentation First three months of 2012 Slide no 56 The global GLP-1 market continues to expand Victoza® is driving the expansion of North America constitutes the majority of the global GLP-1 market the GLP-1 value market* GLP-1 sales in bDKK (right axis) DKK billion Other 8% Diabetes marke
Slide 57: R&D pipeline: Diabetes and obesity
Investor Presentation First three months of 2012 Slide no 57 R&D pipeline: Diabetes and obesity Compound Type Indication Status (phase) 1 2 3 Filed Appr. Tresiba® Ultra-long-acting basal insulin Type 1+2 Ryzodeg® Ultra-long-acting basal insulin with a bolus boost Type 1+2 IDegLira GLP-1 and basal in
Slide 58: Biopharmaceuticals
Investor Presentation First three months of 2012 Slide no 58 Biopharmaceuticals
Slide 59: Biopharmaceuticals – global leadership in select, high-value disease areas
Investor Presentation First three months of 2012 Slide no 59 Biopharmaceuticals – global leadership in select, high-value disease areas Haemophilia Growth Hormone Inflammation with inhibitors Therapy 2011 sales: DKK 8.3 billion 2011 sales: DKK 5.0 billion 2011 sales: DKK 0 Global market position: #1
Slide 60: Haemophilia – a significant market suited for Novo Nordisk's core strengths
Investor Presentation First three months of 2012 Slide no 60 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 USD Novoseven® Xyntha®/Ref
Slide 61: Haemophilia: Location of bleedings and the consequences
Investor Presentation First three months of 2012 Slide no 61 Haemophilia: Location of bleedings and the consequences Head and neck • Bleeding in the joint space causes a strong Nose and gums inflammatory reaction which predisposes to further bleeding Joints • Inadequate or delayed treatment of repea
Slide 62: Characteristics of the haemophilia market
Investor Presentation First three months of 2012 Slide no 62 Characteristics of the haemophilia market • Hereditary disease with an increasing life expectancy leading to steady growing patient population • Relative few haemophilia physicians, i.e. a small target audience • Chronic disease leading to
Slide 63: NovoSeven – a unique biologic for the treatment of a rare bleeding disorders
Investor Presentation First three months of 2012 Slide no 63 NovoSeven® - a unique biologic for the treatment of a rare bleeding disorders Reported sales Key NovoSeven® properties DKK billion 2.2 CAGR 6.2% • Product characteristics: powder and solvent for solution for i.v. injection, available 2.0 i
Slide 64: Characteristics of the haemophilia market
Investor Presentation First three months of 2012 Slide no 64 Characteristics of the haemophilia market • Suppliers Resistor Enabler for biosimilar competitor Driver Uniqueness of suppliers High Low • Customers Size of target audience Large Small Administration of drug Patients Physicians Cost pressu
Slide 65: Core capabilities applied within haemophilia to expand the product portfolio
Investor Presentation First three months of 2012 Slide no 65 Core capabilities are applied within haemophilia to expand the product portfolio development Plasma- Recombinant FVIIa Recombinant FVIIa Market Factor VIIa derived analogues FVIIa* development Plasma-derived Recombinant Longer-acting Marke
Slide 66: Vatreptacog alfa phase 2: Very low treatment failure rate
Investor Presentation First three months of 2012 Slide no 66 Vatreptacog alfa1 phase 2: Very low treatment failure rate Comparison of treatment failure2 rate between Vatreptacog alfa and rFVIIa Summary and conclusions Treatment failure rate 12% • Vatreptacog alfa was well-tolerated at all doses 10.5
Slide 67: Profile of turoctocog alfa, a recombinant FVIII
Investor Presentation First three months of 2012 Slide no 67 Profile of turoctocog alfa, a recombinant FVIII Phase 1 data shows bioequivalence between Completed phase 3a trial programme for turoctocog alfa and existing rFVIII product turoctocog alfa Mean plasma concentration versus time Design: • Tu
Slide 68: NN7999 appears to have a very long acting profile
Investor Presentation First three months of 2012 Slide no 68 Based on phase 1 data NN7999* appears to have a very long acting profile PK profile of FIX products (normalised to 50 U/kg) Phase 3a trial programme FIX (U/mL) • Design: 0.8 • Uncontrolled three arm trial Treatment • NN7999 on-demand 0.7 N
Slide 69: Human growth hormone market
Investor Presentation First three months of 2012 Slide no 69 Human growth hormone market Development in global hGH market Growth hormone volume market share MAT volume kg (left axis) Pfizer Novo Nordisk kg bDKK Eli Lilly Roche MAT Value DKK (right axis) Merck Kgaa Sandoz 40% 35% 30% CAGR volume: 4.2
Slide 70: Solid Norditropin sales growth
Investor Presentation First three months of 2012 Slide no 70 Solid Norditropin® sales growth Reported Norditropin® sales Key Norditropin® properties DKK billion 1.5 • Product characteristics: Premixed, prefilled CAGR 11.4% multi-use delivery systems available in multiple strengths, some stable at ro
Slide 71: R&D pipeline: Haemophilia and hGH
Investor Presentation First three months of 2012 Slide no 71 R&D pipeline: Haemophilia and hGH Compound Type Indication Status (phase) 1 2 3 Filed Appr. Catridecacog rFXIII Congenital FXIII deficiency Turoctocog alfa rFVIII Haemophilia A N9-GP Long-acting rFIX derivative Haemophilia B Vatreptacog al
Slide 72: Inflammation well suited to leverage Novo Nordisk's core capabilities
Investor Presentation First three months of 2012 Slide no 72 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 Protein for all autoimmune d
Slide 73: R&D pipeline: Inflammation
Investor Presentation First three months of 2012 Slide no 73 R&D pipeline: Inflammation Compound Type Indication Status (phase) 1 2a 2b 3 Filed Appr. Anti-NKG2D Monoclonal antibody Crohn‟s disease Anti-IL-20 Monoclonal antibody Rheumatoid arthritis Anti-C5aR Monoclonal antibody Rheumatoid arthritis
Slide 74: Financial performance
Investor Presentation First three months of 2012 Slide no 74 Financial performance
Slide 75: Solid sales growth driven by North America and International Operations
Investor Presentation First three months of 2012 Slide no 75 Solid sales growth driven by North America and International Operations Reported annual sales Reported annual sales split by region DKK Diabetes Biopharmaceuticals billion North America Europe China Int. Operations Japan CAGR 9.7% 17% 14%
Slide 76: Solid operating profit growth driven by diabetes
Investor Presentation First three months of 2012 Slide no 76 Solid operating profit growth driven by diabetes Operating profit Operating profit therapy split DKK billion Diabetes Biopharm 54% 46% 65% 35% 2007 2011 Note: Excl. cost related to discontinuation of all pulmonary activities in 2007 and 20
Slide 77: Profitability per segment
Investor Presentation First three months of 2012 Slide no 77 Profitability per segment Diabetes P&L, 2011 Biopharmaceuticals P&L, 2011 DKK DKK billion billion 60 60 -21% 50 50 -33% 40 40 30 30 -13% 20 -5% 20 -11% +1% 29% -16% -20% 10 10 -5% +1% 49% 0 0 Sales COGS S&D R&D Admin OOI OP Sales COGS S&D
Slide 78: Continued gross margin improvement combined with stable investment level
Investor Presentation First three months of 2012 Slide no 78 Continued gross margin improvement combined with stable investment level COGS CAPEX DKK DKK billion billion COGS COGS as % of sales CAPEX CAPEX as % of sales 12 25% 4 6% 10 20% 3 8 4% 15% 6 2 10% 4 2% 1 5% 2 0 0% 0 0% 2007 2008 2009 2010 2
Slide 79: Growing profits converted into free cash flow
Investor Presentation First three months of 2012 Slide no 79 Growing profits converted into free cash flow Net profit Free cash flow (absolute) DKK DKK billion DKK billion
Slide 80: Long-term financial targets
Investor Presentation First three months of 2012 Slide no 80 Long-term financial targets Performance against long-term financial targets Average Result Previous Updated 2007-2011** 2011 targets targets Operating profit growth 20% 18% 15% 15%* Operating margin 29% 34% 35% 35%* Operating profit after
Slide 81: Long term financial targets: Operating profit growth and operating margin
Investor Presentation First three months of 2012 Slide no 81 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 30% Previous long term financial targets 40% Previous long ter
Slide 82: Long term financial targets: Operating profit after tax to net operating assets, cash to earnings
Investor Presentation First three months of 2012 Slide no 82 Long term financial targets: Operating profit after tax to net operating assets, and cash to earnings Operating profit after tax to net Cash to earnings operating assets (three years’ average) New long term financial target New long term f
Slide 83: Cash generated is returned to shareholders in form of dividends and share buybacks
Investor Presentation First three months of 2012 Slide no 83 Cash generated is returned to shareholders in form of dividends and share buybacks Dividend and payout ratio Share repurchases programmes DKK Payout DKK Share repurchase programme 2007-2010 Dividend paid Payout ratio billion ratio billion
Slide 84: Stable ownership structure
Investor Presentation First three months of 2012 Slide no 84 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- Foundation Institutional and governing institution that: private investo