International Operations overview and strategy. Maziar Mike Doustdar EVP International Operations. Slide 1

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1 Slide 1 International Operations overview and strategy Maziar Mike Doustdar EVP International Operations KUALA LUMPUR Home of International Operations Business Area Southeast Asia

2 Slide 2 Forward-looking statements Novo Nordisk s reports filed with or furnished to the US Securities and Exchange Commission (SEC), as well as the company s Annual Report 2014 and Form 20-F, both filed with the SEC in February 2015, and presentations made, written information released, or oral statements made, to the public in the future by or on behalf of Novo Nordisk, may contain forward-looking statements. Words such as believe, expect, may, will, plan, strategy, prospect, foresee, estimate, project, anticipate, can, intend, target and other words and terms of similar meaning in connection with any discussion of future operating or financial performance identify forward-looking statements. Examples of such forward-looking statements include, but are not limited to: Statements of targets, plans, objectives or goals for future operations, including those related to Novo Nordisk s products, product research, product development, product introductions and product approvals as well as cooperation in relation thereto Statements containing projections of or targets for revenues, costs, income (or loss), earnings per share, capital expenditures, dividends, capital structure, net financials and other financial measures Statements regarding future economic performance, future actions and outcome of contingencies such as legal proceedings, and Statements regarding the assumptions underlying or relating to such statements. These statements are based on current plans, estimates and projections. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific. Novo Nordisk cautions that a number of important factors, including those described in this presentation, could cause actual results to differ materially from those contemplated in any forward-looking statements. Factors that may affect future results include, but are not limited to, global as well as local political and economic conditions, including interest rate and currency exchange rate fluctuations, delay or failure of projects related to research and/or development, unplanned loss of patents, interruptions of supplies and production, product recall, unexpected contract breaches or terminations, government-mandated or market-driven price decreases for Novo Nordisk s products, introduction of competing products, reliance on information technology, Novo Nordisk s ability to successfully market current and new products, exposure to product liability and legal proceedings and investigations, changes in governmental laws and related interpretation thereof, including on reimbursement, intellectual property protection and regulatory controls on testing, approval, manufacturing and marketing, perceived or actual failure to adhere to ethical marketing practices, investments in and divestitures of domestic and foreign companies, unexpected growth in costs and expenses, failure to recruit and retain the right employees, and failure to maintain a culture of compliance. Please also refer to the overview of risk factors in Be aware of the risk on p of the Annual Report 2014 on the company s website novonordisk.com. Unless required by law, Novo Nordisk is under no duty and undertakes no obligation to update or revise any forward-looking statement after the distribution of this presentation, whether as a result of new information, future events or otherwise. Important drug information Victoza (liraglutide 1.2 mg & 1.8 mg) is approved for the management of type 2 diabetes only Saxenda (liraglutide 3 mg) is approved in the US and EU for the treatment of obesity only

3 Slide 3 International Operations is a vast and diverse region of increasing importance to Novo Nordisk Key facts about International Operations (IO) Six business areas spanning 141 countries Sales: 11 bdkk YTD 1 (14% of Novo Nordisk sales) 5-year sales growth: 17% CAGR Share of Novo Nordisk growth (YTD 1 ): 27% Diabetes: 77%; Biopharm: 23% of sales Insulin volume market share: 55% (MAT) Six business areas; 141 countries; 5,128 employees 2 1 YTD = First nine months of 2015; reported sales; 2 Full time employee equivalents in Novo Nordisk s International Operations (excludes employees in headquarter and manufacturing) as of October 2015 Source: IMS monthly MAT volume figures, IMS only covers 13 markets in IO (retail data) Note: New IO structure. Australia and New Zealand are included in reported IO numbers until end 2015 whereafter these countries will be part of Region Pacific

4 Slide 4 Half of the people with diabetes live in IO and the number is growing faster than elsewhere in the world Million people Growth in number of people with diabetes estimated to continue CAGR 1 7.0% 1 st edition th edition nd edition th edition rd edition th edition th edition E 2030E 2040E Share of people 100% 80% 60% 40% 0% Distribution of people with diabetes International Operations China Japan & Korea Europe North America 49% 50% 56% E 1 CAGR for 15-year period. Note: For each edition prevalence for intervening years extrapolated by applying a constant growth factor. Source: IDF Diabetes Atlas edition 1-7, year , respectively. Note: age group Source: International Diabetes Foundation: Diabetes Atlas edition 1 and 7, year 2000 and 2015 respectively (regional breakdown does not reflect the Novo Nordisk regional breakdown entirely)

5 Slide 5 Novo Nordisk value growth in International Operations is driven by modern insulin tmu International Operations insulin market by segments CAGR volume 1 : 12.1% CAGR value 1 : 9.6% Fast-acting Premix Long-acting Device penetration Penetration 100% % 60% 40% 0% 1 CAGR for 5-year period Note: IMS only covers the following 13 markets in IO (retail data): Algeria, Argentina, Australia, Brazil, Colombia, Egypt, India, Mexico, New Zealand, Russia, Saudi Arabia, South Africa and Turkey Source: IMS Monthly MAT volume and value (DKK) figures DKK billion International Operations diabetes care sales development Diabetes care sales 9M % 16% Modern GLP-1 Human insulin 2 insulin 2 Includes new-generation insulin 3 Predominantly oral antidiabetic products, devices and needles Source: Novo Nordisk historical sales data, local currencies 14% 5% Share of growth Other Diabetes diabetes care sales care sales 3 9M 2015

6 Slide 6 Growth in IO in the first nine months of 2015 is driven by Latin America and the Middle East Sales as reported First nine months of 2015 Growth analysis First nine months of 2015 Local currencies Growth Share of growth Middle East & Russia 22% 10% 39% 14% 5% 25% 51% 16% Africa +15% India & Southeast Asia +31% Latin America +33% Middle East & Russia 14% 29% Latin America 46% 45% Africa 10% 14% India & Southeast Asia 12% 12% Total sales 19% 100% Sales of DKK 11.0 billion (+23%) Note: Breakdown excludes sales in Australia and New Zealand of DKK 842 million, which going forward will be part of Region Pacific

7 Slide 7 The vastness and complexity of IO is managed by market segmentation and the application of a uniform strategy 141 countries Three market tiers One strategy Note: Market tier plot is illustrative and only includes a sample of countries from each tier

8 Slide 8 IO markets are segmented in three tiers IO market tier plot Maturity High Brazil Mexico Vietnam India Turkey Colombia Myanmar Tier 1 Iran Uruguay Tier 2 Ghana Low Tier 3 Short-term Mid-term Long-term Return on Investment (ROI) Additional parameters on which IO markets differ Aside from the maturity level and investment horizon, IO markets differ on four parameters: Level of GDP and growth potential Level of healthcare coverage Level of risk and stability Level of Novo Nordisk presence and organisational maturity Note: Market tier plot is illustrative and only includes a sample of countries from each tier

9 Slide 9 The IOAmbition 2017 is the midterm strategy for realising the growth potential of International Operations IOAmbition 2017 Must Win Battles Launch excellence IO will have more than 100 product launches during Better treatment IO will improve patients lives by offering the best treatment possible and by constantly striving to have patients use the most effective treatment offered by Novo Nordisk. Access to care IO will focus on overcoming obstacles for patients to get access to Novo Nordisk s products. Best people, best organisation IO will attract, retain and develop committed people and build an organisation that outperforms competition.

10 Slide 10 Tresiba and Ryzodeg launches have driven market share gains in Latin America Tresiba is steadily increasing Novo Nordisk s modern basal insulin market share in Brazil % value market share 100% Tresiba Levemir glargine Ryzodeg has rapidly increased Novo Nordisk s modern premix market share in Mexico % value market share 100% Ryzodeg NovoMix Lispro Mix 80% 76% 80% 60% 60% 61% 40% 40% 0% % 11% % Aug % 15% 2015 Source: IMS monthly tember 2015 value figures, modern and new-generation insulin only Source: IMS monthly tember 2015 value figures, modern and new-generation insulin only

11 Slide 11 Upgrading to better treatment with modern insulin drives sales increase in Vietnam 100% 80% 60% 40% Split between Novo Nordisk human and modern insulin sales in Vietnam Share of insulin sales Modern insulin Human insulin Activities to expand coverage for modern insulin in Vietnam Reinforcement of product, scientific and value communication knowledge internally Dedicated scientific symposiums to increase awareness and understanding of modern insulins externally Local cost effectiveness workshops for payers and prescribers 0% E 2015E = estimated full year sales for 2015 Source: Novo Nordisk sales volume data

12 Slide 12 Novo Nordisk aims to close the gap in access to care in IO, particularly in least developed markets Seven Diabetes Support Centres launched in Ghana Base of the Pyramid programme aims to improve access to care in low income markets Business development initiative aiming to increase access to care in low income countries through interventions to: 1. Increase awareness of diabetes 2. Ensure early diagnosis of diabetes 3. Educate healthcare professionals to manage diabetes 4. Increase availability and accessibility of diabetes care products 5. Improve adherence through patient education and support Projects launched in Ghana, India, Kenya and Nigeria Free screening at Diabetes Support Centre in Accra, Ghana, April 2014

13 Slide 13 Concluding remarks Novo Nordisk is gaining insulin value market share in IO after a period of decline Value MS (%) 60% 50% 40% 30% Novo Nordisk Sanofi Eli Lilly Biocon 49% 33% IO key takeaways Steadily increasing value market share of 49% in IO driven by new product launches and modern insulin penetration 67% of insulin IO sales in 2015 are either modern or newgeneration insulin compared to 57% in Novo Nordisk product launches planned in IO for % 0% % 1% 2015 Source: IMS Monthly MAT value figures, numbers do not add up to 100% due to smaller insulin manufacturers. IMS only covers the following 13 markets in IO (retail data): Algeria, Argentina, Australia, Brazil, Colombia, Egypt, India, Mexico, New Zealand, Russia, Saudi Arabia, South Africa and Turkey