Novo Nordisk A/s Class B · OMXCOP:NOVO_B
Novo Nordisk A/s Class B — FY2020 Earnings Presentation
130 slides from Novo Nordisk A/s Class B's earnings presentation, February 2021
Slide 1: Novo Nordisk – a focused healthcare company
Novo Nordisk – a focused healthcare company Investor presentation Full year 2020 Team Novo Nordisk, the world’s first all-diabetes professional cycling team, are racing on their jersey to celebrate the 100-year anniversary of the discovery of insulin
Slide 2: Agenda
2 Investor presentation Full year 2020 Novo Nordisk® Progress on Strategic aspirations 2025 Agenda Agenda Commercial execution Innovation and therapeutic focus Financials
Slide 3: Forward-looking statements
3 Investor presentation Full year 2020 Novo Nordisk® Forward-looking statements Novo Nordisk’s reports filed with or furnished to the US Securities and Exchange Commission (SEC), including this presentation as well as the company’s statutory Annual Report 2020 and Form 20-F, which are both expected
Slide 4: Strategic aspirations 2025 - highlights for full year 2020
4 Investor presentation Full year 2020 Novo Nordisk® Strategic aspirations 2025 - highlights for full year 2020 Adding value to society: Diabetes: • New social responsibility strategy ‘Defeat Diabetes’ • Semaglutide 2.0 mg phase 3b trial successfully completed • Expansion of US affordability offerin
Slide 5: Executive Management as of March 2021
5 Novo Nordisk® Executive Management as of 1 March 2021 Lars Fruergaard Jørgensen President and chief executive officer (CEO) People & International Biopharm Finance, Legal & North America Development Research & Commercial Strategy & Product Supply, Organisation Operations Procurement Operations Ear
Slide 6: Sales growth of 7% driven by International Operations and GLP-1
6 Investor presentation Full year 2020 Novo Nordisk® Sales growth of 7% driven by International Operations and GLP-1 Reported geographic sales split for 2020 Added reported therapy area sales and growth DKK Insulin GLP-1 Other diabetes Obesity Biopharm DKK North America Operations International Oper
Slide 7: Diabetes value market leadership has increased to 29.3%
7 Investor presentation Full year 2020 Novo Nordisk® Diabetes value market leadership has increased by 0.7%-points to 29.3% Novo Nordisk global diabetes value market share Diabetes value market leadership expansion driven by the GLP-1 franchise 60% Diabetes GLP-1 Insulin Diabetes care sales grew by
Slide 8: Novo Nordisk increased market share in the US GLP-1 segment
8 Investor presentation Full year 2020 Novo Nordisk® In the last 12 months, Novo Nordisk increased market share in the fast-growing US GLP-1 segment US GLP-1 NBRx market share US GLP-1 TRx market size and market share NBRx share TRx share Ozempic® Rybelsus® dulaglutide Ozempic® Rybelsus® dulaglutide
Slide 9: Rybelsus launch uptake on par with SGLT-2 launches
9 Investor presentation Full year 2020 Novo Nordisk® Rybelsus® launch uptake on par with SGLT-2 launches Launch uptake of Rybelsus® vs SGLT-2s in the US1 In 2020, Rybelsus sales were DKK 1.87 billion Rybelsus ® SGLT-2s NBRx count No face-to-face In the US: 13 March, lockdown promotion 5,000 implemen
Slide 10: International Operations had solid diabetes sales growth across all regions
10 Investor presentation Full year 2020 Novo Nordisk® International Operations had solid diabetes sales growth across all regions and expanded Novo Nordisk market share Reported diabetes sales and growth per IO geography Diabetes value market share and share of growth in IO DKK Market billion Insuli
Slide 11: Saxenda sales growth of 3% impacted by COVID-19
11 Investor presentation Full year 2020 Novo Nordisk® Saxenda® sales growth of 3% is impacted by COVID-19 as fewer patients initiated treatment Reported sales split in operational units Novo Nordisk remains global market leader NAO IO Market share (RHS) Growth at CER DKK Market • Novo Nordisk expand
Slide 12: Biopharm sales growth of 1%
12 Investor presentation Full year 2020 Novo Nordisk® Biopharm sales growth of 1% driven by International Operations, Norditropin® and launches of new haemophilia products Added reported Biopharm sales (FY 2020 vs FY 2019) Biopharm sales driven by global commercial execution DKK Growth at CER Biopha
Slide 13: Semaglutide 2.0 mg s.c. and high dose oral sema
13 Investor presentation Full year 2020 Novo Nordisk® Semaglutide 2.0 mg s.c. and high dose oral sema hold potential to bring patients needing treatment intensification to target Phase 3 trial, SUSTAIN FORTE, completed and label application Phase 3 trial with oral semaglutide 25 mg and 50 mg in T2D
Slide 14: Once-weekly insulin icodec new treatment paradigms
14 Investor presentation Full year 2020 Novo Nordisk® Once-weekly insulin icodec represents one of several new treatment paradigms in the diabetes portfolio The phase 3 programme for insulin icodec has been initiated ONWARDS 1 970 people treatment naive, 78-week, vs. glargine U100 Two novel insulins
Slide 15: R&D milestones for Q4 2020 through 2021
15 Investor presentation Full year 2020 Novo Nordisk® R&D milestones for Q4 2020 through 2021 Clinical milestones1 Regulatory milestones1 Project Q4 2020 H1 2021 H2 2021 Diabetes care ✓SUSTAIN FORTE – Phase 3 Ozempic® results ✓US/EU submission US/EU decision Icodec ✓Phase 3 initiation Glucose sensit
Slide 16: Financial results – Full year of 2020
16 Investor presentation Full year 2020 Novo Nordisk® Financial results – Full year of 2020 Change Change In DKK million 2020 2019 (reported) (CER) Sales 126,946 122,021 4% 7% Gross profit 106,014 101,933 4% Gross margin 83.5% 83.5% Sales and distribution costs 32,928 31,823 3% 6% Percentage of sale
Slide 17: Attractive capital allocation to shareholders
17 Investor presentation Full year 2020 Novo Nordisk® Attractive capital allocation to shareholders DKK Annual cash return to shareholders Cash return priorities billion 45 • The proposed total dividend per share increased 9.0% to DKK 9.10 (including interim dividend of DKK 3.25 per share paid in Au
Slide 18: Financial outlook for 2021
18 Investor presentation Full year 2020 Novo Nordisk® Financial outlook for 2021 Expectations 3 February 2021 Sales growth – at CER 5% to 9% Sales growth - reported Around 4 percentage points lower Operating profit growth – at CER 4% to 8% Operating profit growth - reported Around 6 percentage point
Slide 19: Currency headwinds negatively impacting Operating Profit
19 Investor presentation Full year 2020 Novo Nordisk® Currency headwinds negatively impacting Operating Profit 1 Avg. 2020 vs. Avg. 2019 Exp. Avg FY 2021 vs. FY 2020 2% 0% -2% Hedged -4% 2021 Outlook -6% -8% • Estimated negative impact on Operating Profit around DKK 3 billion USD/DKK CNY/DKK JPY/DKK
Slide 20: Strategic aspirations 2025
20 Investor presentation Full year 2020 Novo Nordisk® Strategic aspirations 2025 • Further raise the innovation-bar for diabetes treatment • Being respected for adding value to society • Develop a leading portfolio of superior treatment solutions for obesity • Progress towards zero environmental imp
Slide 21: Investor contact information
21 Investor presentation Full year 2020 Novo Nordisk® Investor contact information Share information Investor Relations contacts Novo Nordisk’s B shares are listed on the stock exchange in Copenhagen under the symbol ‘NOVO B’. Its ADRs are listed on the Novo Nordisk A/S New York Stock Exchange under
Slide 22: Agenda Appendix
22 Investor presentation Full year 2020 Novo Nordisk® Novo Nordisk corporate strategy 22 Diabetes care 34 Obesity care 51 Agenda Appendix Biopharm & Other serious chronic diseases 61 Regional information 77 Financials 110 Sustainability 117
Slide 23: Investor presentation Full year 2020
23 Investor presentation Full year 2020
Slide 24: Large unmet needs across all therapy areas in scope
24 Investor presentation Full year 2020 Novo Nordisk® Novo Nordisk’s opportunity is in the large unmet needs across all therapy areas in scope DIABETES OBESITY HAEMOPHILIA OTHER SERIOUS CHRONIC DISEASES ~650million 80%ofdiagnosedNASH patients are obese ~463million and 35%have T2DM 70%ofdiabetes ~0.5
Slide 25: Leading positions in diabetes, obesity and haemophilia
25 Investor presentation Full year 2020 Novo Nordisk® Novo Nordisk has leading positions in diabetes, obesity and haemophilia Diabetes care Obesity care Haemophilia DKK DKK DKK billion billion billion 700 #1 50% 12 #1 80% #2 80 50% 600 10 40% 40% 60% 60 500 8 400 30% 30% 6 40% 40 300 20% 20% 4 200 2
Slide 26: Continued single digit volume growth within the insulin segments
26 Investor presentation Full year 2020 Novo Nordisk® Continued single digit volume growth within the insulin segments globally Long-acting insulin Premix insulin Fast-acting insulin tMU tMU tMU 250 100% 160 100% 200 100% CAGR volume1: 4.8% CAGR volume1: 1.0% CAGR volume1: 4.4% MI penetration2: 77.5
Slide 27: Sales growth of 7% at CER, driven by Diabetes and Obesity care
27 Investor presentation Full year 2020 Novo Nordisk® Sales growth of 7% at CER, mainly driven by the Diabetes and Obesity care segment Novo Nordisk reported quarterly sales Reported sales for the full Reported sales and growth breakdown for DKK by therapy year of 2020 the full year of 2020 billion
Slide 28: Sales growth driven by IO and NAO
28 Investor presentation Full year 2020 Novo Nordisk® Sales growth of 7% at CER, driven by IO sales growth of 10% and 3% sales growth in NAO Historic sales by geography Reported sales for the full year Reported sales and growth breakdown for the of 2020 full year of 2020 8% RoW North America Sales S
Slide 29: Insulin sales share of revenue
29 Investor presentation Full year 2020 Novo Nordisk® Insulin sales remain important with more than 40% share of revenue but with less dependence on the US insulin sales Q4 2015 sales split Q4 2020 sales split 30% 30% 41% 56% 14% 29% IO insulin NAO insulin Other products
Slide 30: Strategic aspirations including innovation and therapeutic focus
30 Investor presentation Full year 2020 Novo Nordisk® Novo Nordisk has a set of strategic aspirations including an Innovation and therapeutic focus Develop a leading portfolio of Strengthen and Establish presence in Further raise the innovation superior treatment solutions for progress the Biopharm
Slide 31: Future of R&D: increasing the number of clinical assets
31 Investor presentation Full year 2020 Novo Nordisk® The future of R&D is to focus on increasing the number of clinical assets while maintaining industry-leading late-stage success R&D investments will expand Increased clinical assets Industry-leading success rate1 from beyond historic focus drivin
Slide 32: Pipeline supports growth across four strategic focus areas
32 Investor presentation Full year 2020 Novo Nordisk® Pipeline supports significant growth opportunities across all four strategic focus areas PHASE 1 PHASE 2 PHASE 3 SUBMITTED APPROVED NN1535 – Icosema (LAIsema) NN9838 – Amylin AM833 NN9924 – Oral Semaglutide 25 and 50 mg SUSTAIN FORTE - Semaglutid
Slide 33: Solid patent protection, high barriers to entry
33 Investor presentation Full year 2020 Novo Nordisk® Novo Nordisk holds solid patent protection, high barriers to entry, and a collaborative approach to innovation Novo Nordisk’s position is protected Barriers to entry for biosimilar players Partnerships and acquisitions support by patents and valu
Slide 34: Core capabilities provide a competitive advantage
34 Investor presentation Full year 2020 Novo Nordisk® Novo Nordisk’s core capabilities provide a competitive advantage to continue to defeat diabetes Engineering, formulating, Efficient large-scale Global commercial reach and Deep disease developing and delivering production of proteins leader in ch
Slide 35: Diabetes care
Investor presentation Full year 2020 STRENGTHEN LEADERSHIP by offering innovative 1. Disease and market 35 medicines and driving 2. Insulin segment 43 patient outcomes 3. GLP-1 segment 44 46 Diabetes care
Slide 36: Diabetes – the inability to manage blood sugar levels
36 Investor presentation Full year 2020 Novo Nordisk® Diabetes – the inability to manage blood sugar levels appropriately Facts about diabetes Insulin action profiles Diabetes is a chronic disease that occurs either when the pancreas does not produce enough insulin or when the body cannot effectivel
Slide 37: GLP-1s have positive effects beyond glycaemic control
37 Investor presentation Full year 2020 Novo Nordisk® GLP-1s have positive effects beyond glycaemic control and treatment guidelines now reflect the CV risk benefits Medications for treatment of type 2 diabetes ADA/EASD diabetes treatment guidelines for second-line treatment with established ASCVC o
Slide 38: People with diabetes have increased mortality risk
38 Investor presentation Full year 2020 Novo Nordisk® People with diabetes have increased mortality risk with eight years shorter life expectancy, highlighting the importance of innovation Diabetes is associated with shorter life expectancy The unmet need remains large within diabetes and lower qual
Slide 39: Global diabetes prevalence is increasing
39 Investor presentation Full year 2020 Novo Nordisk® Global diabetes prevalence is increasing with 700 million people expected to have diabetes by 2045 The number of people with diabetes is expected to Of the 463 million, 32.8 million1 people are currently treated with increase 51% by 2045 Novo Nor
Slide 40: Diabetes requires treatment intensification over time
40 Investor presentation Full year 2020 Novo Nordisk® Diabetes is a chronic disease requiring treatment intensification over time Distribution of patients and value across treatment classes Diet and exercise 100% 5% OAD 18% -cell function 80% 44% GLP-1 14% 60% 21% 18% Insulin 40% 4% 8% 20% 41% 26%
Slide 41: Diabetes volume growth remains solid
41 Investor presentation Full year 2020 Novo Nordisk® Diabetes volume growth remains solid with 4% growth in a large USD 50 billion diabetes market The number of treated patients1 is expected to The diabetes realised value2 is expected to grow by Key trends in diabetes grow by 4% annually towards 20
Slide 42: Total branded diabetes market value DKK ~300 billion
42 Investor presentation Full year 2020 Novo Nordisk® The total branded diabetes market has a global value of DKK ~300 billion annually DKK Global diabetes market DKK The USA 0% billion billion 150 143 144 350 +6% 2018/19 2019/20 -13% 295 100 +21% 300 281 Growth at CER 60 52 55 -9% 45 +4% 50 22 20 1
Slide 43: Strong leadership position within growing diabetes market
43 Investor presentation Full year 2020 Novo Nordisk® Novo Nordisk has a strong leadership position within the growing diabetes market Global diabetes market by treatment class1 Novo Nordisk remains global diabetes Novo Nordisk market share and value market leader share of growth DKK billion 350 Mar
Slide 44: Global insulin market leadership expanded to 47.2%
44 Investor presentation Full year 2020 Novo Nordisk® Novo Nordisk global insulin market leadership expanded to 47.2% and the global insulin volume market grew by 2.0% Global North America Operations Market growth: 3.6% International Operations Market growth: 0.7% MS: 47.2% Market growth: 4.8% MS: 3
Slide 45: Insulin market size and volume share
45 Investor presentation Full year 2020 Novo Nordisk® Insulin market size and volume share of growth and market share Insulin market share and market size (DKK billion) Market Δ Market Insulin volume: Share of growth and growth share market share Total 44% 265 -0.2% -0.2% 80% 10% 64% 8% 60% Long- 37
Slide 46: Icodec once-weekly insulin phase 2 results
46 Investor presentation Full year 2020 Novo Nordisk® Icodec, a once-weekly insulin, improved PPG control, HbA1c, and increased the number of patients reaching target in a phase 2 trial Icodec showed statistically significant Numerical improvement in HbA1c The proportion of patients on icodec post p
Slide 47: GLP-1 effect dependent on blood glucose level
47 Investor presentation Full year 2020 Novo Nordisk® GLP-1 effect dependent on blood glucose level GLP-1 mechanism of action when blood Semaglutide holds a plethora of sugar levels increase therapeutic opportunities FORTE – Semaglutide 2.0 mg • Increases insulin secretion in the pancreas Semaglutid
Slide 48: Global GLP-1 market penetration varies across regions
48 Investor presentation Full year 2020 Novo Nordisk® The global GLP-1 market penetration varies across regions with Novo Nordisk having a best-in-class portfolio GLP-1 market growth and Novo Nordisk market share GLP-1 value and patient share1 of the total diabetes market 70% 30% 59.0% 26% 60% 25% 2
Slide 49: GLP-1 sourcing and line of usage
49 Investor presentation Full year 2020 Novo Nordisk® GLP-1 sourcing is primarily from outside the class but GLP-1s are still typically used after failure on other products US ‘line of usage’ across product classes Share of patients on OADs achieving GLP-1 source of business HbA1c below 7% in major
Slide 50: SUSTAIN trials with subcutaneous semaglutide
50 Investor presentation Full year 2020 Novo Nordisk® SUSTAIN trials with subcutaneous semaglutide SUSTAIN 1 2 3 4 5 6 7 8.1% 8.1% 8.3% 8.2% 8.4% 8.7% 8.2% Baseline -0.1 -0.4 -0.5 Change in HbA1c (%) -0.8 -0.9 -1.1 -1.1 -1.2 -1.3 -01 -1.4 -1.4 -1.5 -1.5 -1.8 -1.8 -1.5 -1.6 -1.6 -1.6 1.2 92 kg 89 kg
Slide 51: PIONEER programme with oral semaglutide
51 Investor presentation Full year 2020 Novo Nordisk® PIONEER programme with oral semaglutide PIONEER 1 2 3 4 5 7 8 8.0% 8.1% 8.3% 8.0% 8.0% 8.3% 8.2% Baseline -0.1 -0.1 -0.1 Change in -0.5 -0.6 -0.7 HbA1c (%) -0.8 -0.8 -1.0 -0.9 -1.1 -1.1 -1.1 -1.3 -1.4 -1.4 -1.3 -1.4 -1.4 0.6 88 kg 92kg 91 kg 94 k
Slide 52: Obesity care
Investor presentation Full year 2020 STRENGTHEN TREATMENT OPTIONS THROUGH MARKET DEVELOPMENT AND BY OFFERING INNOVATIVE MEDICINES AND DRIVING PATIENT OUTCOMES 1. Obesity disease and market 52 2. Obesity market development 53 3. Innovation 55 Obesity care
Slide 53: People with obesity at increased risk of severe comorbidities
53 Investor presentation Full year 2020 Novo Nordisk® People with obesity are at an increased risk of developing severe comorbidities that are life-threatening and costly for society Only 2% of the 650 million people with obesity Global healthcare cost related to obesity are treated with prescriptio
Slide 54: Saxenda addresses a global unmet need
54 Investor presentation Full year 2020 Novo Nordisk® Saxenda® addresses a global unmet need for medical weight management Global obesity prevalence Saxenda® launched countries Global reimbursement status 70% access in commercial channel, but due to employer opt-in, effective access is around 20% Re
Slide 55: Global obesity market share, growth and US market
55 Investor presentation Full year 2020 Novo Nordisk® Global obesity market share, market growth, and US volume and value market Obesity market growth and Novo Nordisk Obesity market size and growth US obesity care market remains small at market share around USD 853 million DKK TRx SU mUSD/value bil
Slide 56: Making obesity a healthcare priority requires stakeholder engagement
56 Investor presentation Full year 2020 Novo Nordisk® Making obesity a healthcare priority requires stakeholder engagement HCPs take action by referring or managing Addressing market development barriers obesity as any other chronic disease Stigma is socially unacceptable • Activate people with obes
Slide 57: STEP trials weight loss with semaglutide 2.4 mg
57 Investor presentation Full year 2020 Novo Nordisk® Across the STEP 1, 3, and 4 trials, a weight loss of 16.9% to 18.2% was reported for people treated with semaglutide 2.4 mg STEP 1 STEP 3 STEP 4 STEP 2 Weight Weight management Sustained weight management Weight management with management with IB
Slide 58: STEP 1 weight loss up to 16.9%
58 Investor presentation Full year 2020 Novo Nordisk® In STEP 1, people treated with semaglutide had a superior weight loss of up to 16.9% The pivotal STEP 1 trial showed greater than 16% weight loss Data from STEP 1 % change in body weight 0 • Average age 46 -2 Placebo: -2.4% • 74.1% women -4 • Ave
Slide 59: STEP 1 categorical weight loss and quality of life
59 Investor presentation Full year 2020 Novo Nordisk® In STEP 1, 34.8% of patients treated with semaglutide reached ≥20% weight loss and reported improved quality of life versus placebo Categorical weight loss Sema 2.4 mg showed a statistically significant treatment difference versus placebo in the
Slide 60: AM833 phase 2 and combination with semaglutide
60 Investor presentation Full year 2020 Novo Nordisk® The AM833 phase 2 monotherapy trial and phase 1 combination with semaglutide trial decreased weight by 10.8% and 17.1% Weight loss for AM833 plus lifestyle intervention1 Weight loss for AM833 and semaglutide in phase 12 % change in % change in bo
Slide 61: Obesity pipeline supports efforts to close the treatment gap
Novo Nordisk® Novo Nordisk obesity pipeline supports efforts to close the treatment gap Innovation curve Novo Nordisk’s current pipeline is closing the % treatment gap New body weight set point 0 Established prediction Increase weight loss towards 15- 5 of WL outcome 30% Today’s marketed treatment o
Slide 62: Biopharm
Investor presentation Full year 2020 SECURE A LEADING POSITION BY LEVERAGING FULL PORTFOLIO AND EXPANDING INTO ADJACENT AREAS 1. Haemophilia 63 2. Growth hormone disorders 65 3. Biopharm innovation 66 Biopharm
Slide 63: Biopharm sustained growth outlook supported by innovation
63 Investor presentation Full year 2020 Novo Nordisk® Biopharm sustained growth outlook is supported by innovation and utilisation of core capabilities Internal and external innovation to drive Core capabilities within research and long-term growth development to drive long-term growth Bringing Ensu
Slide 64: Haemophilia is a rare disease with severe unmet needs
64 Investor presentation Full year 2020 Novo Nordisk® Haemophilia is a rare disease with severe unmet medical needs and the market is highly competitive Low diagnosis and treatment rates Sales of recombinant haemophilia products Number of within haemophilia DKK billion people (000) 500 40 400 30 300
Slide 65: Biopharm sales growth of 1%
65 Investor presentation Full year 2020 Novo Nordisk® Biopharm sales growth of 1% driven by solid commercial execution with key brands being NovoSeven® and Norditropin® NovoSeven® and Norditropin® account for 80% of Biopharm sales Added sales in the haemophilia product portfolio DKK DKK billion bill
Slide 66: Norditropin sales growth of 8%
66 Investor presentation Full year 2020 Novo Nordisk® Solid commercial execution is driving 8% Norditropin® sales growth for the full year of 2020 Historic reported sales Norditropin® value leadership maintained Continue frequent launches with new for Norditropin® despite increasing competition indi
Slide 67: Innovation in haemophilia
67 Investor presentation Full year 2020 Novo Nordisk® Scientific excellence ensures an innovative and competitive pipeline with therapeutic solutions for severe conditions More than 35 years of innovation Biopharm pipeline Curative Current 2018 2019 2020 2021 2022 therapy phases Non-invasive Concizu
Slide 68: Concizumab phase 3 programme
68 Investor presentation Full year 2020 Novo Nordisk® Phase 3 programme on-going investigating concizumab for haemophilia A and B irrespective of inhibitor status Phase 3 trials with data expected first half of 2022 Arm 1: No prophylaxis Exp7 and Exp8: Characteristics and next steps On-demand treatm
Slide 69: Mim8 bispecific antibody for haemophilia A
69 Investor presentation Full year 2020 Novo Nordisk® Next-generation FVIII mimentic, Mim8, is a bispecific antibody for s.c. prophylaxis treatment in people with haemophilia A Thrombin generation assay Thromboelastography Characteristics • Strong activity at site of bleeding 400 HA plasma + FVIII 1
Slide 70: Once-weekly somapacitan phase 3 for GHD
70 Investor presentation Full year 2020 Novo Nordisk® Once-weekly, biodegradable somapacitan has entered phase 3 for GHD and is approved for AGHD indication Phase 2 trial in GHD with 1-year efficacy and safety Somapacitan 16 * 11.5 14 10.01 9.7 Growth hormone with a Albumin binding side 12 height ve
Slide 71: Novo Nordisk and bluebird bio genome editing
71 Investor presentation Full year 2020 Novo Nordisk® Novo Nordisk and bluebird bio join forces in next-generation genome editing for children and adult patients with haemophilia A Potential curative treatment in bluebird bio/Novo Nordisk’s joint haemophilia A approach • megaTAL: Proprietary, paten
Slide 72: Other serious chronic diseases
Investor presentation Full year 2020 72 ESTABLISH PRESENCE BY BUILDING COMPETITIVE PIPELINE AND SCIENTIFIC LEADERSHIP 1. The unmet needs 72 2. Cardiovascular disease 73 3. Non-alcoholic steatohepatitis 74 4. Stem cells 76 Other serious chronic diseases
Slide 73: Expanding into other serious chronic diseases
73 Investor presentation Full year 2020 Novo Nordisk® Novo Nordisk is expanding into other serious chronic diseases Serious chronic diseases are often associated with diabetes and obesity New therapeutic areas represent patient populations with high unmet medical needs Estimated patients Number of r
Slide 74: Ambition within cardiovascular disease
74 Investor presentation Full year 2020 Novo Nordisk® Novo Nordisk’s ambition within cardiovascular disease In-licensing/acquisition of mid-stage assets At least one product launched between 2024-2028 targeting atherosclerotic cardiovascular disease or heart failure with a highly innovative, first t
Slide 75: Ziltivekimab phase 2b RESCUE trial
75 Investor presentation Full year 2020 Novo Nordisk® Ziltivekimab phase 2b RESCUE trial was successfully completed In the RESCUE trial, zilti QM showed reduction in hsCRP at all dose levels placebo ziltivekimab 7.5 mg ziltivekimab 15 mg ziltivikemab 30 mg Zilti QM showed reductions in inflammation
Slide 76: Semaglutide NASH resolution results
76 Investor presentation Full year 2020 Novo Nordisk® Semaglutide showed significant improvements in NASH resolution and could play a role in preventing disease progression Semaglutide showed resolution of NASH with no worsening of fibrosis versus placebo in the phase 2 trial1 Proportion • NASH reso
Slide 77: Stem cell platform
77 Investor presentation Full year 2020 Novo Nordisk® The stem cell platform has the potential to solve unmet needs for people with serious chronic diseases STEM CELL TECHNOLOGY Parkinson’s disease Differentiate Treatment Patient Collaboration with Lund University Cell bank of Blastocyst Pluripotent
Slide 78: International Operations
Investor presentation Full year 2020 1. International Operations growth 78 2. International Operations at a glance 80 3. EMEA 85 4. Region China 90 5. RoW 94 International Operations
Slide 79: Growth momentum driven by demographics and Market Fit approach
79 Investor presentation Full year 2020 Novo Nordisk® Growth momentum has increased driven by demographics and the Market Fit approach International Operations is diverse and Historic growth has been in the Growth momentum has benefitted from covers 190 markets range of 4-6% the Market Fit approach
Slide 80: Medium-term growth expected 6-10% annually
80 Investor presentation Full year 2020 Novo Nordisk® The medium-term growth is expected to be 6-10% annually driven by securing the base and three future growth enablers Sales have increased by 5% since 2013, while ILLUSTRATIVE Secure the sales base by leveraging biopharm and portfolio of medium-te
Slide 81: International Operations at a glance
81 Investor presentation Full year 2020 Novo Nordisk® International Operations at a glance Diabetes trend Diabetes market by value and Novo Novo Nordisk reported sales Million DKK Nordisk market share Sales billion Full year 2020 Growth2 22% (mDKK) 700 200 80% Long-acting insulin3 9,959 13% 600 26%
Slide 82: Diabetes market share and growth in International Operations
82 Investor presentation Full year 2020 Novo Nordisk® Diabetes market share and market growth in International Operations Diabetes market growth and Novo Nordisk market share Diabetes market size and growth DKK billion ~7% 40% 3 4 172 37% 161 4 30% 20% 23% 12% 10% ~12% 12% 22.0% 23.0% 0% Nov Nov Nov
Slide 83: Insulin market in International Operations
83 Investor presentation Full year 2020 Novo Nordisk® Insulin market size and volume share of growth and market share in International Operations Insulin market share and market size (DKK billion) Market Δ Market Insulin volume: Share of growth and growth share market share 4% +0.8% 80% 10% Total 49
Slide 84: GLP-1 market share and market growth
84 Investor presentation Full year 2020 Novo Nordisk® GLP-1 market share and market growth GLP-1 market growth and Novo Nordisk market share GLP-1 market size and growth DKK 80% billion ~28% 2 19 64% 3 0 60% 15 54% 40% 35% ~35% 28% 20% 53.6% 50.6% 0% Nov Nov Nov Novo Nordisk Eli Lilly Others Nov NN
Slide 85: Obesity market in International Operations
85 Investor presentation Full year 2020 Novo Nordisk® Obesity market share and market growth in International Operations Obesity market growth and Novo Nordisk market share Obesity market size and growth DKK billion ~3% 4 0 4 50% 60% 39% 50% 40% 40% 30% 30% 20% 20% ~5% 10% 10% 37% 40% -3% 0% 0% -10%
Slide 86: EMEA at a glance
86 Investor presentation Full year 2020 Novo Nordisk® EMEA at a glance Diabetes trend Diabetes market by value and Novo Novo Nordisk reported sales Nordisk market share Million DKK Sales billion Full year 2020 Growth2 250 (mDKK) 31% 100 80% Long-acting insulin3 6,451 11% 200 28% Premix insulin4 2,95
Slide 87: Diabetes market share and growth in EMEA
87 Investor presentation Full year 2020 Novo Nordisk® Diabetes market share and market growth in EMEA Diabetes market growth and Novo Nordisk market share Diabetes market size and growth 37% DKK 40% ~8% billion 3 92 3 2 85 20% 0% 8% ~11% 26.9% 27.6% -20% Nov Nov Nov Novo Nordisk BI Others Nov 2017 2
Slide 88: Insulin market in EMEA
88 Investor presentation Full year 2020 Novo Nordisk® Insulin market size and volume market share in EMEA Insulin market share and market size (DKK billion) Market Δ Market Insulin volume: market share growth share 80% 12% Total 48% 37 2% +1.0% 10% 60% 8% Long- 38% 18 5% +1.6% acting 48% 6% 40% 6% 4
Slide 89: GLP-1 market in EMEA
89 Investor presentation Full year 2020 Novo Nordisk® GLP-1 market share and market growth in EMEA GLP-1 market growth and Novo Nordisk market share GLP-1 market size and growth 80% DKK ~28% billion 1 14 55% 2 0 50% 11 34% 20% 28% ~34% -10% 55.1% 52.9% -40% Nov Nov Nov Novo Nordisk Eli Lilly Others
Slide 90: Obesity market in EMEA
90 Investor presentation Full year 2020 Novo Nordisk® Obesity market share and market growth in EMEA Obesity market growth and Novo Nordisk market share Obesity market size and growth DKK billion ~4% 80% 50% 0.9 0.9 0.1 70% 67% 40% 60% 50% 30% ~13% 40% 30% 20% 67% 20% 62% 10% 10% 4% 0% 0% Nov Nov No
Slide 91: Region China at a glance
91 Investor presentation Full year 2020 Novo Nordisk® Region China at a glance Diabetes trend Diabetes market by value and Novo Novo Nordisk reported sales Nordisk market share Million DKK Sales Full year 2020 Growth2 billion (mDKK) 250 25 100% 8% Long-acting insulin3 1,471 41% 21% Premix insulin4 4
Slide 92: Diabetes market in Region China
92 Investor presentation Full year 2020 Novo Nordisk® Diabetes market share and market growth in Region China Diabetes market growth and Novo Nordisk market share Diabetes market size and growth DKK ~8% 70% billion 1 1 21 60% 20 60% -1 50% 40% 16% 30% 30% 20% ~17% 10% 27.4% 29.7% 7% 0% Nov Nov Nov N
Slide 93: Insulin market in Region China
93 Investor presentation Full year 2020 Novo Nordisk® Insulin market size and volume share of growth and market share in Region China Insulin market share and market size (DKK billion) Market Δ Market Insulin volume: market share growth share 80% 50% Total 47% 11 14% +0.4% 40% 18% 60% Long– 50% 4 19
Slide 94: GLP-1 market in Region China
94 Investor presentation Full year 2020 Novo Nordisk® GLP-1 market share and market growth in Region China GLP-1 market growth and Novo Nordisk market share GLP-1 market size and growth DKK ~54% billion 0.0 0.0 0.6 100% 0.2 90% 80% 0.4 60% ~50% 91% 40% 50% 54% 93% 20% 0% Nov NN market share Market g
Slide 95: Rest of World at a glance
95 Investor presentation Full year 2020 Novo Nordisk® Rest of World at a glance Diabetes trend Diabetes market by value and Novo Nordisk reported sales Novo Nordisk market share Million DKK Sales billion Full year 2020 Growth2 (mDKK) 30% 200 Long-acting insulin3 2,037 7% 70 80% Premix insulin4 2,435
Slide 96: Diabetes market in Rest of World
96 Investor presentation Full year 2020 Novo Nordisk® Diabetes market share and market growth in Rest of World Diabetes market growth and Novo Nordisk market share Diabetes market size and growth ~5% 20% 1 1 60 57 1 15% 13% 10% 10% 5% 5% 0% -5% ~10% 12.8% 13.4% -10% Nov Nov Nov Novo Nordisk BI Other
Slide 97: Insulin market in Rest of World
97 Investor presentation Full year 2020 Novo Nordisk® Insulin market size and volume market share in Rest of World Insulin market share and market size (DKK billion) Market Δ Market Insulin volume: market share growth share 80% 20% Total 56% 11 2% +0.8% 60% 57% 15% Fast- 1% +0.6% 38% 4 acting 40% 9%
Slide 98: GLP-1 market in Rest of World
98 Investor presentation Full year 2020 Novo Nordisk® GLP-1 market share and market growth in Rest of World GLP-1 market growth and Novo Nordisk market share GLP-1 market size and growth ~24% 80% DKK 0.3 4.4 64% billion 0.5 -0.1 60% 3.5 39% 44% 40% 20% 24% ~39% 0% 43.6% 38.8% -20% Nov Nov Nov Novo N
Slide 99: Obesity market in Rest of World
99 Investor presentation Full year 2020 Novo Nordisk® Obesity market share and market growth in Rest of World Obesity market growth and Novo Nordisk market share Obesity market size and growth DKK ~(5%) 40% 20% billion 3.0 0.1 2.8 31% 15% 30% 10% 20% 5% 0% 10% ~0.4% -5% -5% 30% 32% 0% -10% Nov NN ma
Slide 100: North America Operations
Investor presentation Full year 2020 1. US growth drivers 100 2. US healthcare system 101 3. North America operations at glance 104 North America Operations
Slide 101: Innovation drives largest transition in history of Novo Nordisk USA
101 Investor presentation Full year 2020 Novo Nordisk® Innovation drives largest transition in the history of Novo Nordisk USA, turning around 70% of sales in just seven years Directional growth drivers and catalysts Relative sales composition – 48% transformation complete 100% GLP-1 Obesity Insulin
Slide 102: US health insurance dominated by few large commercial payers
102 Investor presentation Full year 2020 Novo Nordisk® US health insurance is dominated by few large commercial payers with slow expansion of public insurance coverage The US population by health insurance status expected to remain In 2018, PBMs covered 288 million lives and the market has stable in
Slide 103: US healthcare system is complex and rebates have increased
103 Investor presentation Full year 2020 Novo Nordisk® The US healthcare system is complex and rebates paid by Novo Nordisk have increased significantly over the years Illustrative example of the Development of Novo Nordisk rebates US healthcare system and net sales in the USA US net sales US rebate
Slide 104: North America Operations at a glance
104 Investor presentation Full year 2020 Novo Nordisk® North America Operations at a glance Diabetes trend in population Diabetes market by value and Novo Nordisk reported sales Novo Nordisk market share Million DKK Sales billion Full year 2020 Growth2 (mDKK) 70 13% 600 70% Long-acting insulin3 8,48
Slide 105: Diabetes market in North America Operations
105 Investor presentation Full year 2020 Novo Nordisk® Diabetes market share and market growth in North America Operations Diabetes market growth and Novo Nordisk market share Diabetes market size and growth 50% DKK ~11% billion 16 477 13 16 431 40% 36% 32% 30% 20% 12% ~12% 10% 11% 31.5% 31.1% 0% No
Slide 106: Volume market shares in the three insulin segments
106 Investor presentation Full year 2020 Novo Nordisk® Novo Nordisk volume market shares in the three insulin segments USA long-acting insulin USA premix insulin USA fast-acting insulin tMU tMU tMU 100 80% 80 80% 80 100% CAGR volume1: 1.3% CAGR volume1: (6.8%) CAGR volume1: 2.0% MI penetration2: 67.
Slide 107: Insulin market in North America Operations
107 Investor presentation Full year 2020 Novo Nordisk® Insulin market size and volume market share in North America Operations Insulin market share and market size (DKK billion) Market Δ Market Insulin volume: market share growth share 60% 10% Total 43% 206 -1% -0.5% 50% 8% Long- 40% 6% 38% 105 1% -
Slide 108: GLP-1 market in North America Operations
108 Investor presentation Full year 2020 Novo Nordisk® GLP-1 market share and market growth in North America Operations GLP-1 market growth and Novo Nordisk market share GLP-1 market size and growth DKK ~44% billion 14 124 60% 58% 0 19 50% 92 40% 35% ~35% 20% 49.9% 47.0% 0% Nov NN market share NN sh
Slide 109: Obesity market in North America Operations
109 Investor presentation Full year 2020 Novo Nordisk® Obesity market share and market growth in North America Operations Obesity market growth and Novo Nordisk market share Obesity market size and growth DKK ~(2%) 100% 30% billion 6 1 6 80% 80% 20% ~13% 60% 10% 40% -2% 80% 70% 0% 20% 0% -10% Nov No
Slide 110: Financials
Investor presentation Full year 2020 1. Profit and loss, capital allocation 111 2. Currencies 115 3. Ownership structure 116
Slide 111: Solid sales growth driven by Diabetes and Obesity care
111 Investor presentation Full year 2020 Novo Nordisk® Solid sales growth driven by Diabetes and Obesity care Reported annual sales 2016-2020 Financial focus DKK billion CAGR1 2.6% 120 17% 15% • Focus on driving solid sales growth 100 20% 17% 16% • Gross margin to remain broadly stable 80 • Over tim
Slide 112: Solid operating profit growth driven by Diabetes care
112 Investor presentation Full year 2020 Novo Nordisk® Solid operating profit growth driven by Diabetes care Operating profit Operating profit split per franchise DKK billion 60 60% 50 50% 40 40% 19% 28% 30 30% 20 4% 1% -4% 11% 3% 20% 72% 81% 10 6% 5% 3% 6% 7% 10% 0 0% 2016 2017 2018 2019 2020 Opera
Slide 113: Higher profitability in the Biopharm segment
113 Investor presentation Full year 2020 Novo Nordisk® Higher profitability in the biopharm segment driven by lower S&D costs Diabetes and Obesity care P&L – full year 2020 Biopharm P&L – full year 2020 DKK DKK billion billion 120 -16% Sales ratios 20 -17% Sales ratios 100 -28% -16% 15 80 -10% -13%
Slide 114: Stable COGS level as percentage of sales
114 Investor presentation Full year 2020 Novo Nordisk® Stable COGS level as percentage of sales Cost of goods sold Capital expenditure DKK DKK billion billion 25 25% 12 10% 10 20 20% 8% 8 15 15% 6% 6 10 10% 4% 4 5 5% 2% 2 0 0% 0 0% 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2021 COGS COGS as
Slide 115: Currency impact on Novo Nordisk's P/L
115 Investor presentation Full year 2020 Novo Nordisk® Currency impact on Novo Nordisk’s P/L Operational currency impact Financial currency impact • All movements in currencies will directly impact the • All gain/losses from hedging contracts are included in the individual reported functional lines
Slide 116: Sustainability
Investor presentation Full year 2020 116 116 Novo Nordisk® Sustainability 1. Sustainable business 118 3. Environmental responsibility 121 2. Social responsibility 123 2. Governance 129
Slide 117: Long-term value to society driven by strong sense of purpose
117 Investor presentation Full year 2020 Novo Nordisk® Long-term value to society is driven by a strong sense of purpose and by being a responsible business Foundation ownership allows for long-term strategies, while Financial, environmental and social responsibility anchored still supporting agile
Slide 118: 2020 assured sustainability performance on key metrics
118 Investor presentation Full year 2020 Novo Nordisk® 2020 assured sustainability performance on key metrics 2020 2019 2018 Resources Energy consumption for operations (1,000 GJ) 3,191 2,993 3,099 Share of renewable power for production sites 100% 76% 77% Environmental Water consumption for product
Slide 119: Circular for Zero environmental impact
119 Investor presentation Full year 2020 Novo Nordisk® With Circular for Zero, Novo Nordisk aspires to have zero environmental impact Environmental aspirations Circular products Upgrade existing and design new products based on circular principles and solve the end-of-life product waste challenge to
Slide 120: Progressing towards zero CO2 emissions
120 Investor presentation Full year 2020 Novo Nordisk® Progressing towards zero CO2 emissions by addressing emissions in and beyond production Mapping CO2 emissions is the CO2 emissions from operations & Activities to meet zero CO2 from operations first step in finding solutions transport declined 4
Slide 121: Social responsibility initiatives
121 Investor presentation Full year 2020 Novo Nordisk® Social responsibility is core to Novo Nordisk and initiatives focus on prevention, access and innovation …accelerating …providing access to …innovating to prevention to affordable care for vulnerable improve lives… bend the curve… patients in ev
Slide 122: Providing access to affordable care for vulnerable patients
122 Investor presentation Full year 2020 Novo Nordisk® Providing access to affordable care for vulnerable patients in every country Finding solutions to improve care for vulnerable patients in every country Partnerships are essential to requires a multi-faceted approach and actions reach vulnerable
Slide 123: US insulin net prices and affordability offerings
123 Investor presentation Full year 2020 Novo Nordisk® US insulin net prices have declined in recent years, but vulnerable patients rely on our affordability offerings The US population by health Net price development for Novo Nordisk insulin affordability insurance coverage NovoLog® vial offerings
Slide 124: Defeating diabetes starts with preventive measures
124 Investor presentation Full year 2020 Novo Nordisk® Defeating diabetes starts by taking preventive measures Global obesity burden is part of the cause for rising Strengthen prevention by focusing diabetes prevalence for both adults and children on health inequality in cities The global obesity Be
Slide 125: Aspiration to be a sustainable workplace
125 Investor presentation Full year 2020 Novo Nordisk® The aspiration is to be a sustainable workplace Organise to win by accelerating Grow our people and be a Drive cultural evolution to be diversity and inclusion talent incubator an employer for the future Aspiring for balanced gender An organisat
Slide 126: Diversity and inclusion is a key focus area
126 Investor presentation Full year 2020 Novo Nordisk® Diversity and inclusion is a key focus area for Novo Nordisk Novo Nordisk is committed to building Driving an inclusive and diverse workplace a diverse and inclusive culture • Aspiring for balanced gender representation at all managerial levels
Slide 127: Structure in place to ensure corporate governance
127 Investor presentation Full year 2020 Novo Nordisk® Structure in place to ensure corporate governance Rules and Regulations Governance structure Assurance measures Shareholders A and B share structure Danish and foreign laws and Audit financial data and review regulations social and environmental
Slide 128: Sustainable tax approach
128 Investor presentation Full year 2020 Novo Nordisk® Novo Nordisk has a sustainable tax approach Sustainable tax approach approved by the BoD Corporate income taxes by region – three year average in DKK billion 1 | Commercially driven Corporate Region IP rights1 Production2 Sales3 income taxes • B
Slide 129: Global Business Ethics Code of Conduct
129 Investor presentation Full year 2020 Novo Nordisk® Global Business Ethics Code of Conduct based on the Novo Nordisk Way Novo Nordisk Way Business ethics compliance framework “We never compromise on quality and business ethics” Identify • Trends such as increased focus on anti-bribery and anti-co
Slide 130: Purpose driven culture supported by facilitation
130 Investor presentation Full year 2020 Novo Nordisk® A purpose driven culture is supported by facilitation to safeguard Novo Nordisk values Facilitation purpose Facilitations – Ensure we walk the talk • A systematic approach to follow up on how the Novo Nordisk Way is embedded in the organisation