Novo Nordisk A/s Class B · OMXCOP:NOVO_B

Novo Nordisk A/s Class B — Investor Presentation (March 2000)

32 slides from Novo Nordisk A/s Class B's investor presentation, March 2000

  1. Slide 1: Novo Nordisk Investor Presentation March 2000

    Novo Nordisk Investor Presentation March 2000 http://www.novo.dk 1

  2. Slide 2: Introduction

    Introduction Kurt Anker Nielsen CFO and Deputy CEO 2

  3. Slide 3: Group financial results 1999

    Group financial results 1999 DKK million 1999 1998 % chg. Net turnover 20,924 17,911 17 Operating profit as reported 4,214 3,536 19 Op. profit adj. for Restructuring costs*) 4,564 3,536 29 Op. profit adj. for Restruct. costs and Seroxat **) 3,838 2,873 34 Financial items (263) 204 - Profit before t

  4. Slide 4: Group operating profit 1995 - 1999

    Group operating profit 1995 - 1999 Excl. Seroxat royalty 4000 Operating Profit 25 Growth-Year-over-Year 20 3000 DKK Million 15 PCT 2000 10 1000 5 0 0 1995 1996 1997 1998 1999* *) Including restructuring costs. Compounded growth rate from 1995 -1999: 4

  5. Slide 5: Group financial results and targets

    Group financial results and targets 1999 1998 Target Growth in 19.2% 16.3%  15% operating profit Operating margin 20.1% 19.7%  20% RONFA 18.5% 16.1%  20% Return On Non-Financial Assets Free Cash Flow DKKM DKKM Positive after dividends 1,072 772 5

  6. Slide 6: Demerger process

    Demerger process Health Care Enzymes Novo Nordisk A/S Novozymes A/S Selected February 17, 2000 February 17, 2000 segmented data Detailed historic Demerger Document, Demerger Document financial data and Prospectus, Fall 2000 Fall 2000 Road shows Aug/Sept 2000 Nov/Dec 2000 Extraordinary Turn of 2000/2

  7. Slide 7: Enzyme Business

    Enzyme Business Steen Riisgaard Corporate Executive Vice President 7

  8. Slide 8: Enzyme Business: Segmented financial results 1997 - 1999

    Enzyme Business* Segmented financial results 1997 - 1999 DKK million 1999 1998 1997 Net turnover 4,501 4,264 4,347 Operating profit 687 603 601 Operating profit growth 14% 0% R&D costs ratio 13% 14% 13% Operating margin 15.3% 14.1% 13.8% Capital expenditures 567 403 732 Fixed assets 4,579 4,198 4,36

  9. Slide 9: Enzyme Business: Our product base

    Enzyme Business Our product base  Enzymes are natural and 100% biodegradable  Enzymes are made from renewable resources  The use of enzymes saves water, energy, chemicals, and waste. In short:  Enzymes are clean technology !! 9

  10. Slide 10: Enzyme Business: Our technology base

    Enzyme Business Our technology base  Traditional microbiology  Newest and most advanced diversity generating technologies  State-of-the-art expression systems  Highly efficient production plants  Application technology. In short:  The ability to develop and produce any industrial enzyme for wh

  11. Slide 11: Building the industrial enzyme market

    Building the industrial enzyme market 6 Market 5 Consolidation Denim Sales in DKK billion New etc 4 competitors 3 Detergent rebuild. HFCS 2 industry Allergy 1 scare 0 1969 1978 1981 1987 1990 1996 1999 1963 1966 1972 1975 1984 1993 HFCS is High Fructose Corn Syrup. 11

  12. Slide 12: Two ways to look at the textile market

    Enzyme Business Two ways to look at the textile market What we have Current market for Current market for textile enzymes textile chemicals DKK 680 million DKK 50,000 million What we don’t have 12

  13. Slide 13: Where does growth come from?

    Enzyme Business Where does growth come from ?  New markets  New products  New applications  New partners. 13

  14. Slide 14: Enzyme Business: Challenges for year 2000

    Enzyme Business Challenges for year 2000  Volume growth  Defending and improving margin  Further roll-out of e-commerce, B2B  GMO debate  Successful separate listing  Introduce new incentive programme  Continued strong free cash flow. 14

  15. Slide 15: Health Care

    Health Care Lars Rebien Sørensen Corporate Executive Vice President 15

  16. Slide 16: Health Care: Segmented financial results 1997 - 1999

    Health Care* Segmented financial results 1997 - 1999 DKK million 1999 1998 1997 Net turnover 16,423 13,647 12,585 Operating profit 3,150 2,270 1,823 Operating profit growth 39% 25% R&D cost ratio 17% 20% 17% Operating margin 19.2% 16.6% 14.5% Capital expenditures 1,362 1,767 1,950 Fixed assets 10,28

  17. Slide 17: Insulin market in volume

    Insulin market in volume (‘99/ ‘98 MAT Q3) % market size Market growth Novo Nordisk (‘99) (‘99/’98) Market share (‘99) USA 1.0% 21% 44% Europe 10.0% 60% 46% J apan 10.4% 81% 5% RoW 4.0% 60% 5% World 5.6% 44% 100% 17 Source: IMS. Industrialised world only.

  18. Slide 18: Health Care Sales USA and Japan 1996-99

    Health Care Sales USA and Japan 1996-99 4000 3500 3000 DKK million 2500 USA +85% 2000 Japan +34% 1500 1000 500 0 1996 1997 1998 1999 18

  19. Slide 19: Health Care US Strategy

    Health Care US Strategy 19

  20. Slide 20: US therapies and market approach

    US therapies and market approach Therapies Market approach Diabetes Care See following slides NovoSeven® Novo Nordisk alone Glucagen Out-licensed to Ben Venue hGH Novo Nordisk alone HRT Out-licensed to Pharmacia & Upjohn 20

  21. Slide 21: History of Prandin launch

    History of PrandinTM launch  Co-promotion with SP January 1998  Schering-Plough 450 representatives mainly covering GPs  Novo Nordisk 200 representatives mainly covering specialists  Detailing PrandinTM (1st) and insulin (2nd)  Fee paid per visit and per script generated.  PrandinTM launched A

  22. Slide 22: Now what?

    Now what ?  Dissolve Schering-Plough agreement:  End March 2000  No indemnities involved  Friendly separation  Transfer of all data and contacts from Schering-Plough  Novo Nordisk has option to take over Schering-Plough diabetes care collaborations, eg with Joslin Diabetes Center and ADA. 22

  23. Slide 23: USA going forward: Products (1 of 2)

    USA going forward Products (1 of 2) Insulin  Pen penetration increasing  From 2% of market to 5% of market in 1999  Novo Nordisk has 3%-points and Eli Lilly has 2%-points of the pen market.  Insulin analogues  Short-acting insulin analogue NovoLog® (approval pending)  Short-acting insulin anal

  24. Slide 24: USA going forward: Products (2 of 2)

    USA going forward Products (2 of 2)  Other diabetes products  PrandinTM  Insulin sensitisers (Phase 1)  GLP-1 (Phase 1)  Other oral products, eg NN4201 (Phase 1).  Other products  NovoSeven®  Human growth hormone, Norditropin®  Liquid growth hormone (filed). 24

  25. Slide 25: US going forward: Expanding sales force

    US going forward Expanding sales force  Current sales force: 200  Extra reps. 2000 300 - 400  Extra reps. 2001 – 2004 ~ 400  Target by end 2004 Up to 1,000  Focus:  1st detail Insulin, devices, pulmonary  2nd detail PrandinTM. 25

  26. Slide 26: Financial implications

    Financial implications  Impact on operating profit in 2000  Savings from cancelled Schering-Plough deal  Cost from additional representatives  Net effect neutral  Maintaining expectations for Year 2000.  Impact on operating profit in 2001 and beyond  Expected increased insulin market share 

  27. Slide 27: Examples of future diabetes products

    Examples of future diabetes products Cell-based Vaccine for T1 therapy diabetes Acute-acting insulin sensitiser Appetite Insulin -cell regulating mimetic stress agent Complexity reducer Hepatic Lipid-regulating glucose inhibitor agent Closed-loop insulin GLP-1 pump analogue Functional insulin mimet

  28. Slide 28: NovoSeven quarterly sales 1998 - 1999

    NovoSeven® Quarterly sales 1998 - 1999 Sales in DKK million  Current indication 389  Haemophiliacs with 362 1998 inhibitors to Factors VIII 1999 and IX 293 268  Market potential estimated: USD 250 million  Europe: Year-over-Year 178 growth +40% 148 135 115  USA: Strong penetration, launch April

  29. Slide 29: Potential NovoSeven markets - Examples

    Potential NovoSeven® markets - Examples NovoSeven Market segmentation for bleedings Coagulation Factor Thrombocytes Haemostasis Deficiency Single Multiple Lack of Defective Surgical Spontaneous Factor Factors platelets platelets bleeding bleeding Haemophilia with Liver Disease Chemotherapy Glanzman

  30. Slide 30: Challenges for year 2000

    Challenges for year 2000  New US strategy  Expanding the insulin market  Continued launch of NovoRapid® /NovoLog®  NovoSeven® launch in Japan  Expected launch of SimpleXx™ in USA and Japan  Launch of new devices  Continued strong progress in pipeline  Positioning as pure play health care com

  31. Slide 31: Outlook Year 2000

    Outlook Year 2000  Operating profit  Growth in operating profit at the level of 10% provided current exchange rates remain constant throughout the year  Adjusting for restructuring costs and Seroxat royalty income in 1999, the expected growth in operating profit is at the level of 20%.  Financi

  32. Slide 32: Forward-looking statements

    Forward-looking statements This presentation contains forward-looking statements as the term is defined in the US Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risk and uncertainties that may cause actual results to differ materially from expectatio

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