Novo Nordisk A/s Class B · OMXCOP:NOVO_B
Novo Nordisk A/s Class B — FY2011 Earnings Presentation
80 slides from Novo Nordisk A/s Class B's earnings presentation, February 2012
Slide 1: Investor presentation Full year 2011
Slide no 1 Investor presentation Full year 2011
Slide 2: Agenda
Investor Presentation Full year 2011 Slide no 2 Agenda Introduction and highlights by Lars Rebien Sørensen, CEO Sales update by Kåre Schultz, COO Sustainability update by Lise Kingo, CoS R&D update by Mads Krogsgaard Thomsen, CSO Financials and outlook by Jesper Brandgaard, CFO Questions & answers s
Slide 3: Forward-looking statements
Investor Presentation Full year 2011 Slide no 3 Forward-looking statements Novo Nordisk‟s reports filed with or furnished to the US Securities and Exchange Commission (SEC), including this document as well as the company‟s Annual Report 2011 and Form 20-F, both expected to be filed with the SEC in F
Slide 4: Highlights - full year 2011
Investor Presentation Full year 2011 Slide no 4 Highlights - full year 2011 Sales development • Sales increased by 11% in local currencies driven by Victoza® and modern insulins • Victoza® sales reached DKK 5,991 million (growth of 159% in DKK) • Healthcare reforms impacted sales growth negatively w
Slide 5: Victoza and modern insulins continue to drive growth
Investor Presentation Full year 2011 Slide no 5 Victoza® and modern insulins continue to drive growth – full year 2011 Sales as reported Growth analysis Other Local currencies Growth Share of Norditropin® +13% growth +5% 4% Modern insulins 11% 41% 8% Human insulins (8%) (14%) NovoSeven® +4% Victoza®
Slide 6: Novo Nordisk strategic injectable therapies exhibit steady sales growth
Investor Presentation Full year 2011 Slide no 6 Novo Nordisk strategic injectable therapies exhibit steady sales growth Sales as reported Key growth drivers DKK billion • Steady growth in global diabetes prevalence • Clear strategic focus on expanding and Total: achieving leadership in CAGR 21.3%1 •
Slide 7: Novo Nordisk continues to expand leadership position within diabetes care
Investor Presentation Full year 2011 Slide no 7 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 30% Takeda Merck Novartis Total market
Slide 8: Global insulin volume continues to grow as the diabetes pandemic expands
Investor Presentation Full year 2011 Slide no 8 Global insulin volume continues to grow as the diabetes pandemic expands Number of people with diabetes Regional insulin volume growth continues to grow North America China Million people North America Europe China Europe International Operations Japan
Slide 9: Victoza reached blockbuster status in 2011
Investor Presentation Full year 2011 Slide no 9 Victoza® reached blockbuster status in 2011 Reported Victoza® sales Victoza® sales split per region DKK North America Europe billion Int. Operations Japan & Korea 5% 6% 27% 62% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY 2011 sales of DKK 6.0 billion 2009 2010 2011
Slide 10: Victoza continues to drive the growth of the GLP-1 class in the US
Investor Presentation Full year 2011 Slide no 10 Victoza® continues to drive the growth of the GLP-1 class in the US Expansion of the GLP-1 market Key observations for the US market GLP-1 TRx scripts (thousands) GLP-1 % of diabetes market value (right axis) • Close to 70% of new patients come from O
Slide 11: In key European markets Victoza has expanded the GLP-1 class to nearly 10% of the diabetes market
Investor Presentation Full year 2011 Slide no 11 In key European markets Victoza® has expanded the GLP-1 class to nearly 10% of the diabetes market Development in key European GLP-1 markets following Victoza® launch Germany UK France Market value*: DKK 10 billion Market value*: DKK 5 billion Market
Slide 12: Sustainability highlights - full year 2011
Investor Presentation Full year 2011 Slide no 12 Sustainability highlights - full year 2011 Social performance - patients • Active contribution to UN High-Level Meeting call to action on non-communicable diseases, incl. diabetes • Capacity-building scaled up: more than 800,000 healthcare professiona
Slide 13: Case studies document shared value
Investor Presentation Full year 2011 Slide no 13 Case studies document shared value 02: Changing diabetes in China A business case study to explore the value of educating patients and health care professionals and building strong relations with local stakeholders 03: Creating shared value in the Uni
Slide 14: US Blueprint for Change: Creating shared value
Investor Presentation Full year 2011 Slide no 14 US Blueprint for Change: Creating shared value value to value to society Novo Nordisk • Strengthened healthcare system Increased market potential and market share • Intensive health care professional training programmes • Leading innovation • Increa
Slide 15: Emphasis on Triple Bottom Line underpins business success
Investor Presentation Full year 2011 Slide no 15 Emphasis on Triple Bottom Line underpins business success Ranked #1 in 2012 Global 100 US insulin market ‘clean capitalism’ index Index volume Novo Nordisk Total market • Energy productivity • Carbon productivity • Pay equity • CEO remuneration linked
Slide 16: Degludec and DegludecPlus regulatory update
Investor Presentation Full year 2011 Slide no 16 Degludec and DegludecPlus regulatory update • New drug applications (NDA) submitted to FDA on 29 September 2011 USA • FDA review ongoing, PDUFA action date set for 29 July 2012 • NDA submitted to EMA on 26 September 2011 EU • EMA review ongoing, ‘Day
Slide 17: Research and Development update
Investor Presentation Full year 2011 Slide no 17 Research and Development update Diabetes care and obesity • Degludec and DegludecPlus regulatory process progressing according to plan in Europe, US, Japan1 Switzerland and Canada • In two 52+52 weeks extension trials2 in people with type 1 and type 2
Slide 18: Financial results – full year 2011
Investor Presentation Full year 2011 Slide no 18 Financial results – full year 2011 DKK million 2011 2010 Change Sales 66,346 60,776 9% Gross profit 53,757 49,096 9% Gross margin 81.0% 80.8% Sales and distribution costs 19,004 18,195 4% Percent of sales 28.6% 29.9% Research and development costs 9,6
Slide 19: US dollar and Japanese Yen currently above 2011 average
Investor Presentation Full year 2011 Slide no 19 US dollar and Japanese Yen currently above 2011 average 650 Spot rates Quarterly average Annual average Currency 2010 2011 Current assumptions1 average average rate2 600 USD/DKK USD 562 535 567 550 JPY 6.42 6.73 7.39 CNY 83 83 90 500 GBP 869 859 890 1
Slide 20: Cash generated is returned to shareholders in form of dividends and share buybacks
Investor Presentation Full year 2011 Slide no 20 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 Expansion fo
Slide 21: Financial outlook 2012
Investor Presentation Full year 2011 Slide no 21 Financial outlook 2012 Expectations 2 February 2012 Sales growth - local currencies 7-11% Around 4 percentage points higher than Sales growth - reported growth in local currencies Operating profit growth - local Around 10% currencies Operating profit
Slide 22: Closing remarks
Investor Presentation Full year 2011 Slide no 22 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 • 24% market share in diabetes care and • G
Slide 23: Investor information
Investor Presentation Full year 2011 Slide no 23 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 Stock Exchange
Slide 24: Appendix
Investor Presentation Full year 2011 Slide no 24 Appendix 1. Novo Nordisk at a glance 2. Diabetes 3. Biopharmaceuticals 4. Financials
Slide 25: Novo Nordisk at a glance
Investor Presentation Full year 2011 Slide no 25 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 growth, driven by
Slide 26: Novo Nordisk has leading positions in diabetes, haemophilia and growth disorders
Investor Presentation Full year 2011 Slide no 26 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 Novo Nordisk
Slide 27: Double digit top line growth driven by diabetes pandemic
Investor Presentation Full year 2011 Slide no 27 Double digit top line growth driven by diabetes pandemic Novo Nordisk reported quarterly Number of people with diabetes sales by therapy continues to grow DKK Million billion Diabetes care Haemophilia Growth disorders Other people North America Europe
Slide 28: Diabetes pandemic is fuelled by growing rates of obesity
Investor Presentation Full year 2011 Slide no 28 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% 4.5-5.9% 6.0-7.4%
Slide 29: Insulin is the ultimate care for people with diabetes
Investor Presentation Full year 2011 Slide no 29 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 GLP-1 Insul
Slide 30: Novo Nordisk is uniquely positioned being the only company with a full portfolio of modern insulins
Investor Presentation Full year 2011 Slide no 30 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 Nov 2011 expiration Fast-acting EU: 1999 12.8 bDKK EU: 2017* 47% insulin US: 2001 (+8%)
Slide 31: Significant growth opportunities fuelled by strong R&D pipeline
Investor Presentation Full year 2011 Slide no 31 Significant growth opportunities fuelled by strong R&D pipeline Diabetes care Degludec/ NN1218 – ultra NN1953 – oral DegludecPlus fast acting insulin insulin NN9926 – oral IdegLira Liraglutide depot GLP-1 Liraglutide for NN9924 – oral Semaglutide obes
Slide 32: Growth opportunities supported by strong global presence in both sales and manufacturing
Investor Presentation Full year 2011 Slide no 32 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 • Assembly • P
Slide 33: High barriers to entry in biologics
Investor Presentation Full year 2011 Slide no 33 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 • Need to show co
Slide 34: Operating profit growth targeting 15%, driven by gross margin improvements and operational leverage
Investor Presentation Full year 2011 Slide no 34 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 improvements of manufa
Slide 35: Operating profit after tax to net operating assets, and Free Cash flow to earnings both targeting 90%
Investor Presentation Full year 2011 Slide no 35 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 after tax to ne
Slide 36: Cash generated is returned to shareholders in form of dividends and share buybacks
Investor Presentation Full year 2011 Slide no 36 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 Expansion fo
Slide 37: Diabetes
Investor Presentation Full year 2011 Slide no 37 Diabetes
Slide 38: Diabetes – the inability to manage blood sugar levels appropriately
Investor Presentation Full year 2011 Slide no 38 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 metabolism
Slide 39: UKPDS: Tight glycaemic control reduces risk of micro- and macro-vascular complications
Investor Presentation Full year 2011 Slide no 39 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 Microvascular vascu
Slide 40: Insulin – a hormone enabling blood sugar to enter cells
Investor Presentation Full year 2011 Slide no 40 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 generated meal-
Slide 41: The insulin market is comprised of three segments
Investor Presentation Full year 2011 Slide no 41 The insulin market is comprised of three segments Global insulin volume market by segments Action profiles of insulins tMU CAGR volume: 7.7% CAGR value*: 14.0% Fast acting 33% Fast acting 32% Premix 30% Premix 35% Long acting 37% Long acting 33% Nov N
Slide 42: Sustained double-digit insulin market growth
Investor Presentation Full year 2011 Slide no 42 Sustained double-digit insulin market growth Global insulin market growth The fundamental growth drivers 2006-2011 of the insulin market DKK billion Volume CAGR: CAGR: 6.3%* 14.0%* • Prevalence of diabetes 19.2 • Rising diagnosis rates and treatment r
Slide 43: Value growth driven by conversion to modern insulins and better devices
Investor Presentation Full year 2011 Slide no 43 Value growth driven by conversion to modern insulins and better devices 2006 North America Japan & Korea China 2011 Europe IO Global Modern insulin volume penetration Device volume penetration Note: Monthly MAT Nov 2011, volume figures. Size of bubble
Slide 44: Maintaining insulin leadership by sustaining modern insulin market share
Investor Presentation Full year 2011 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*: DKK 16 bil
Slide 45: Solid insulin growth across diverse regions
Investor Presentation Full year 2011 Slide no 45 Solid insulin growth across diverse regions Market Market volume Novo Nordisk volume value size & growth composition market share 16% Basal Novo Nordisk 47.1 5% 7% 52.7 47% North America 37% Fast-acting 59% 41% Rest Premix 23.5 3% 2% 24.5 26% Europe 3
Slide 46: Still a significant potential for Novo Nordisk on the US modern insulin market
Investor Presentation Full year 2011 Slide no 46 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 120 80% 60%
Slide 47: Maintaining the solid leadership position on the European modern insulin market
Investor Presentation Full year 2011 Slide no 47 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 penetration 160 100% 6
Slide 48: Stable leadership position on the rapidly growing Chinese insulin market
Investor Presentation Full year 2011 Slide no 48 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 Shanghai Fosun Ton
Slide 49: Stable leadership position in International Operations
Investor Presentation Full year 2011 Slide no 49 Stable leadership position in International Operations International Operations insulin market by International Operation insulin volume segments market shares Modern insulin penetration Novo Nordisk Sanofi tMU Penetration Device penetration Eli Lilly
Slide 50: Sustained leadership position in Japan
Investor Presentation Full year 2011 Slide no 50 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 16 100% 70% 14 CAGR volume: 3.3% 60% CAGR val
Slide 51: Phase 3a programmes for Degludec and DegludecPlus completed in less than 18 months
Investor Presentation Full year 2011 Slide no 51 Phase 3a programmes for Degludec and DegludecPlus 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) NN1250-366
Slide 52: BEGIN and BOOST confirm the profiles of Degludec and DegludecPlus
Investor Presentation Full year 2011 Slide no 52 BEGINTM and BOOSTTM confirm the profiles of Degludec and DegludecPlus Degludec OD vs insulin glargine OD1 DegludecPlus BD vs NovoMix® BD2 • Basal insulin with flatter, less variable profile and • First basal-prandial combination product of a doubling
Slide 53: Degludec and DegludecPlus current phase 3b trials
Investor Presentation Full year 2011 Slide no 53 Degludec and DegludecPlus current phase 3b trials Degludec Trial ID Comparator Purpose Participants Duration LPLV NN1250-3948 Degludec+NovoRapid® Victoza® add-on to Degludec N = 420, T2 26 weeks H2 2012 NN1250-3923 Degludec Compare formulations N = 40
Slide 54: Assessment of the insulin industry
Investor Presentation Full year 2011 Slide no 54 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 payers Low
Slide 55: GLP-1 effect dependent on level of blood glucose - which reduces risk of hypoglycaemia
Investor Presentation Full year 2011 Slide no 55 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 GLP-1 • Inc
Slide 56: Victoza, the only once-daily human GLP-1 analogue for type 2 diabetes
Investor Presentation Full year 2011 Slide no 56 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 • Reduces systol
Slide 57: The global GLP-1 market is expanding
Investor Presentation Full year 2011 Slide no 57 The global GLP-1 market is expanding 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 5% 9 Other 8 6% Diabetes market share (val
Slide 58: R&D pipeline: Diabetes and obesity
Investor Presentation Full year 2011 Slide no 58 R&D pipeline: Diabetes and obesity Compound Type Indication Status (phase) 1 2 3 Filed Appr. Degludec Ultra-long-acting basal insulin Type 1+2 DegludecPlus Ultra-long-acting basal insulin with a bolus boost Type 1+2 IDegLira GLP-1 and basal insulin co
Slide 59: Biopharmaceuticals
Investor Presentation Full year 2011 Slide no 59 Biopharmaceuticals
Slide 60: Biopharmaceuticals – global leadership in select, high-value disease areas
Investor Presentation Full year 2011 Slide no 60 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 Global mark
Slide 61: Haemophilia – a significant market suited for Novo Nordisk's core strengths within human proteins
Investor Presentation Full year 2011 Slide no 61 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®/Refacto® Benefi
Slide 62: Haemophilia: Location of bleedings and the consequences
Investor Presentation Full year 2011 Slide no 62 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 repeated Gut Join
Slide 63: Characteristics of the haemophilia market
Investor Presentation Full year 2011 Slide no 63 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 life-long p
Slide 64: NovoSeven - a unique biologic for the treatment of a rare bleeding disorders
Investor Presentation Full year 2011 Slide no 64 NovoSeven® - a unique biologic for the treatment of a rare bleeding disorders Reported sales Key NovoSeven® proporties DKK billion 2.2 CAGR 7.7% • Product characteristics: powder and solvent for solution for i.v. injection, available 2.0 in multiple d
Slide 65: Characteristics of the haemophilia market
Investor Presentation Full year 2011 Slide no 65 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 pressure from paye
Slide 66: Vatreptacog alfa phase 2: Very low treatment failure rate
Investor Presentation Full year 2011 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% investigat
Slide 67: Human growth hormone market
Investor Presentation Full year 2011 Slide no 67 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% 25% CAGR v
Slide 68: Solid Norditropin sales growth
Investor Presentation Full year 2011 Slide no 68 Solid Norditropin® sales growth Reported Norditropin® sales Key Norditropin® properties DKK billion 1.5 • Product characteristics: Premixed, prefilled CAGR 8.4% multi-use delivery systems available in multiple strengths, some stable at room- temperatu
Slide 69: R&D pipeline: Haemophilia and hGH
Investor Presentation Full year 2011 Slide no 69 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 alfa rFVIIa Ha
Slide 70: Inflammation well suited to leverage Novo Nordisk's core capabilities
Investor Presentation Full year 2011 Slide no 70 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 diseases ther
Slide 71: R&D pipeline: Inflammation
Investor Presentation Full year 2011 Slide no 71 R&D pipeline: Inflammation Compound Type Indication Status (phase) 1 2a 2b 3 Filed Appr. Anti-NKG2D Monoclonal antibody Rheumatoid arthritis Anti-NKG2D Monoclonal antibody Crohn‟s disease Anti-IL-20 Monoclonal antibody Rheumatoid arthritis Anti-C5aR M
Slide 72: Financial performance
Investor Presentation Full year 2011 Slide no 72 Financial performance
Slide 73: Solid sales growth driven by North America and International Operations
Investor Presentation Full year 2011 Slide no 73 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% 8% 11% 9% 39
Slide 74: Solid operating profit growth driven by diabetes
Investor Presentation Full year 2011 Slide no 74 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 2008.
Slide 75: Profitability per segment
Investor Presentation Full year 2011 Slide no 75 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 R&D Admin OO
Slide 76: Continued gross margin improvement combined with stable investment level
Investor Presentation Full year 2011 Slide no 76 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 2011 2007 200
Slide 77: Growing profits converted into free cash flow
Investor Presentation Full year 2011 Slide no 77 Growing profits converted into free cash flow Net profit Free cash flow (absolute) DKK DKK billion DKK billion Free cash flow Free cash flow as % of net profit 20 140% 18 120% 16 14 100% 12 80% 10 60% 8 6 40% 4 20% 2 0 0% 2007 2008 2009 2010 2011
Slide 78: Long term financial targets: Operating profit growth and operating margin
Investor Presentation Full year 2011 Slide no 78 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 term financial
Slide 79: Long term financial targets: Operating profit after tax to net operating assets, and cash to earnings
Investor Presentation Full year 2011 Slide no 79 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 financial tar
Slide 80: Stable ownership structure
Investor Presentation Full year 2011 Slide no 80 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 investors • provide