Novo Nordisk increased reported operating profit by 8% in the first six months of 2017 Sales increased by 4% measured in Danish kroner

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1 report for the period 1 January 2017 to 30 June August 2017 Novo Nordisk increased reported operating profit by 8% in the first six months of 2017 Sales increased by 4% measured in Danish kroner Sales increased by 4% in Danish kroner and by 3% in local currencies to DKK 57.1 billion. Sales of Tresiba increased by 155% to DKK 3.7 billion (149% in local currencies). Sales of Victoza increased by 21% to DKK 11.5 billion (18% in local currencies). Sales of Saxenda increased by 98% to DKK 1.2 billion (90% in local currencies) Sales in North America Operations increased by 5% (2% in local currencies). Sales in International Operations increased by 4% (5% in local currencies). Sales within diabetes and obesity care increased by 11% to DKK 47.5 billion (10% in local currencies). Sales within biopharmaceuticals declined by 19% to DKK 9.6 billion (20% in local currencies), primarily reflecting an impact from the introduction of a generic version of the hormone replacement therapy product Vagifem and from rebate adjustments for human growth hormone in Q1 2016, both in the USA, whereas sales within haemophilia were broadly unchanged. Operating profit increased by 8% reported in Danish kroner and by 6% in local currencies to DKK 26.9 billion. Net profit increased by 4% to DKK 20.1 billion. Diluted earnings per share increased by 6% to DKK In June, Victoza received a positive 17 2 vote from the FDA Advisory Committee acknowledging that clinical trial data provided substantial evidence of cardiovascular risk reduction. Furthermore, Novo Nordisk received EU approval for an update of both the Victoza and Saxenda labels reflecting the evidence of cardiovascular risk reduction. The Board of Directors has approved an interim dividend for 2017 of DKK 3.00 per share of DKK 0.20 that will be paid in August The financial outlook for 2017 has been updated and sales growth measured in local currencies is now expected to be in the range of 1% to 3% compared with the previous range of 0% to 3%. A negative currency impact of 3 percentage points is now expected, reflecting the recent and significant depreciation of the US dollar and most other key invoicing currencies versus the Euro and the Danish krone. Operating profit growth measured in local currencies is now expected to be in the range of 1% to 5% compared with the previous range of -1% to 3%. A negative currency impact of 4 percentage points is now expected. For 2018, formulary negotiations with Pharmacy Benefit Managers and managed care organisations in the USA are progressing. Subject to the final outcome of these negotiations, average prices after rebates are expected to be lower compared with the levels in 2017, predominantly driven by the basal insulin segment. The market access for Novo Nordisk s key products is, however, expected to remain broadly unchanged compared to Lars Fruergaard Jørgensen, president and CEO: We are well on track to deliver on our targets for 2017 based on sales growth driven by our new, innovative products within diabetes and obesity care and a continued focus on cost control. Although the formulary negotiations in the USA reflect the tough competitive environment, we remain confident that our long-term financial growth targets are achievable. Novo Nordisk A/S Investor Relations Novo Allé 2880 Bagsværd Denmark Telephone: CVR No:

2 report for the period 1 January 2017 to 30 June 2017 Page 2 of 33 ABOUT NOVO NORDISK Novo Nordisk is a global healthcare company with more than 90 years of innovation and leadership in diabetes care. This heritage has given us experience and capabilities that also enable us to help people defeat other serious chronic conditions: haemophilia, growth disorders and obesity. Headquartered in Denmark, Novo Nordisk employs approximately 41,400 people in 77 countries, and markets its products in more than 165 countries. Novo Nordisk s B shares are listed on Nasdaq Copenhagen (Novo-B). Its ADRs are listed on the New York Stock Exchange (NVO). For more information, visit novonordisk.com. CONFERENCE CALL DETAILS On 9 August 2017 at CEST, corresponding to 7.00 am EDT, a conference call will be held. Investors will be able to listen in via a link on novonordisk.com, which can be found under Investors. Presentation material for the conference call will be available approximately one hour before on the same page. WEBCAST DETAILS On 10 August 2017 at CEST, corresponding to 8.15 am EDT, management will give a presentation to institutional investors and sell-side analysts in London. A webcast of the presentation can be followed via a link on novonordisk.com, which can be found under Investors. Presentation material for the webcast will be made available on the same page. FINANCIAL CALENDAR 1 November 2017 Statement for first nine months of February 2018 Statement for 2017 CONTACTS FOR FURTHER INFORMATION Media: Katrine Sperling krsp@novonordisk.com Ken Inchausti (US) kiau@novonordisk.com Investors: Peter Hugreffe Ankersen phak@novonordisk.com Hanna Ögren haoe@novonordisk.com Anders Mikkelsen armk@novonordisk.com Christina Jensen cnje@novonordisk.com Kasper Veje (US) kpvj@novonordisk.com Further information about Novo Nordisk is available on novonordisk.com.

3 report for the period 1 January 2017 to 30 June 2017 Page 3 of 33 LIST OF CONTENTS FINANCIAL PERFORMANCE... 4 Consolidated financial statement for the first six months of Sales development... 5 Diabetes and obesity care, sales development... 6 Biopharmaceuticals, sales development Development in costs and operating profit items (net) Capital expenditure and free cash flow Key developments in the second quarter of OUTLOOK RESEARCH & DEVELOPMENT UPDATE Diabetes Obesity Biopharmaceuticals SUSTAINABILITY UPDATE EQUITY LEGAL MATTERS MANAGEMENT STATEMENT FINANCIAL INFORMATION Appendix 1: Quarterly numbers in DKK Appendix 2: Income statement and statement of comprehensive income Appendix 3: Balance sheet Appendix 4: Statement of cash flows Appendix 5: Statement of changes in equity Appendix 6: Regional sales split Appendix 7: Key currency assumptions Appendix 8: Quarterly numbers in USD (additional information) Appendix 9: Non-IFRS financial measures (additional information)... 33

4 report for the period 1 January 2017 to 30 June 2017 Page 4 of 33 FINANCIAL PERFORMANCE CONSOLIDATED FINANCIAL STATEMENT FOR THE FIRST SIX MONTHS OF 2017 These unaudited consolidated financial statements for the first six months of 2017 have been prepared in accordance with IAS 34 Interim Reporting and on the basis of the same accounting policies as were applied in the Annual Report 2016 of Novo Nordisk. Novo Nordisk has adopted all new, amended or revised accounting standards and interpretations ( IFRSs ) as published by the IASB that are endorsed by the EU and effective for the accounting period beginning on 1 January These IFRSs have not had a significant impact on the consolidated financial statements for the first six months of The impact of the new standards IFRS 9, IFRS 15 and IFRS 16, which are issued, but have not yet come into effect, is described in the Annual Report The assessment of the impact is unchanged. Furthermore, the financial report including the consolidated financial statements for the first six months of 2017 and Management s review have been prepared in accordance with additional Danish disclosure requirements for interim reports of listed companies. Amounts in DKK million, except number of shares, earnings per share and full-time equivalent employees. PROFIT AND LOSS H H % change H to H DKK million Net sales 57,090 54,671 4% Gross profit 48,430 46,392 4% Gross margin 84.8% 84.9% Sales and distribution costs 13,548 13,608 (0%) Percent of sales 23.7% 24.9% Research and development costs 6,703 6,635 1% Percent of sales 11.7% 12.1% Administrative costs 1,770 1,781 (1%) Percent of sales 3.1% 3.3% Other operating income, net % Operating profit 26,876 24,806 8% Operating margin 47.1% 45.4% items (net) (1,229) (251) 390% Profit before income taxes 25,647 24,555 4% Income taxes 5,540 5,132 8% Effective tax rate 21.6% 20.9% Net profit 20,107 19,423 4% Net profit margin 35.2% 35.5% OTHER KEY NUMBERS Depreciation, amortisation and impairment losses 1,571 1,341 17% Capital expenditure (tangible assets) 3,538 2,775 27% Net cash generated from operating activities 22,215 21,972 1% Free cash flow 18,792 19,102 (2%) Total assets 97,825 88,269 11% Equity 48,436 42,585 14% Equity ratio 49.5% 48.2% Average number of diluted shares outstanding (million) 2, ,545.4 (2%) Diluted earnings per share / ADR (in DKK) % Full-time equivalent employees end of period 41,385 42,265 (2%)

5 report for the period 1 January 2017 to 30 June 2017 Page 5 of 33 SALES DEVELOPMENT Sales increased by 4% measured in Danish kroner and by 3% in local currencies. Sales growth was realised within diabetes and obesity care with the majority of growth originating from Tresiba, Victoza, NovoRapid and Saxenda, partly offset by declining sales of Levemir. Sales within biopharmaceuticals declined, reflecting lower sales of human growth disorder products, Vagifem and NovoSeven. Sales split per therapy Sales H DKK million Growth as reported Growth in local currencies Share of growth in local currencies The diabetes and obesity care segment New-generation insulin 4, % 155% 144% - Tresiba 3, % 149% 125% - Xultophy % 219% 11% - Ryzodeg % 164% 7% Modern insulin 23,381 (1%) (1%) (20%) - NovoRapid 10,403 9% 8% 45% - Levemir 7,609 (12%) (13%) (68%) - NovoMix 5,369 0% 1% 3% Human insulin 5,123 (5%) (4%) (13%) Total insulin 32,689 7% 6% 111% Victoza 11,525 21% 18% 100% Other diabetes care 1) 2,092 (3%) (2%) (3%) Total diabetes care 46,306 10% 9% 208% Obesity (Saxenda ) 1,225 98% 90% 32% Diabetes and obesity care total 47,531 11% 10% 240% The biopharmaceuticals segment Haemophilia 2) 5,315 (1%) (2%) (8%) - NovoSeven 4,663 (5%) (6%) (18%) - NovoEight % 42% 10% Human growth disorders 3,325 (27%) (28%) (74%) Other biopharmaceuticals 3) 919 (52%) (53%) (58%) Biopharmaceuticals total 9,559 (19%) (20%) (140%) Total sales 57,090 4% 3% 100% 1) Primarily NovoNorm and needles. 2) Comprises NovoSeven, NovoEight and NovoThirteen. 3) Primarily Vagifem and Activelle. Both International Operations and North America Operations contributed to sales growth with 68% and 32% respectively. Within International Operations, the main growth contributors were Region Europe, Region China and Region AAMEO (Africa, Asia, Middle East and Oceania). Sales growth in North America Operations was negatively impacted

6 report for the period 1 January 2017 to 30 June 2017 Page 6 of 33 by approximately 5 percentage points due to non-recurring adjustments to rebates in the Medicaid patient segment in the first quarter of 2016 predominantly related to Norditropin and the negative impact from the launch of a generic version of Vagifem, both in the USA. Sales split per region Sales H DKK million Growth as reported Growth in local currencies Share of growth in local currencies North America Operations 30,043 5% 2% 32% - USA 28,985 5% 2% 28% International Operations 27,047 4% 5% 68% - Region Europe 10,581 3% 4% 24% - Region AAMEO 6,021 3% 4% 13% - Region China 5,668 5% 7% 22% - Region Japan & Korea 3,040 3% 1% 1% - Region Latin America 1,737 14% 9% 8% Total sales 57,090 4% 3% 100% Please refer to appendix 6 for further details on sales in the first six months of In the following sections, unless otherwise noted, market data are based on moving annual total (MAT) from May 2017 and May 2016 provided by the independent data provider IMS Health. DIABETES AND OBESITY CARE, SALES DEVELOPMENT Sales of diabetes and obesity care products increased by 11% measured in Danish kroner and by 10% in local currencies to DKK 47,531 million. Novo Nordisk is the world leader in diabetes care with a global value market share of 27%. Insulin Sales of insulin increased by 7% measured in Danish kroner and 6% in local currencies to DKK 32,689 million. Measured in local currencies, sales growth was driven by both North America Operations and International Operations where Region AAMEO, Region Latin America, Region China and Region Europe contributed to growth. Novo Nordisk is the global leader with 46% of the total insulin market and 44% of the market for modern insulin and new-generation insulin, both measured in volume. Sales of new-generation insulin (Tresiba, Xultophy, Ryzodeg and Fiasp ) reached DKK 4,185 million compared with DKK 1,609 million in Sales of Tresiba (insulin degludec), the once-daily new-generation insulin, reached DKK 3,689 million compared with DKK 1,448 million in The roll-out of Tresiba continues and the product has now been launched in 56 countries. In the USA where Tresiba was launched broadly in January 2016, the product maintains wide commercial and Medicare Part D formulary coverage. In Japan where Tresiba was launched in

7 report for the period 1 January 2017 to 30 June 2017 Page 7 of 33 March 2013 with similar reimbursement as insulin glargine U100, its share of the basal insulin market has grown steadily, and Tresiba has now captured 41% of the basal insulin market measured in monthly value market share. Similarly, Tresiba has shown solid penetration in other markets with reimbursement at a similar level to insulin glargine U100, whereas penetration remains modest in markets with restricted market access. Sales of Xultophy (IDegLira), a once-daily single-injection combination of insulin degludec (Tresiba ) and liraglutide (Victoza ), reached DKK 284 million compared with DKK 89 million in Sales growth was driven by both North America Operations and International Operations where predominantly Region Europe contributed to growth. Xultophy has been launched in 15 countries; in the USA launched under the brand name Xultophy 100/3.6 in May Sales of Ryzodeg, a soluble formulation of insulin degludec and insulin aspart, reached DKK 196 million compared with DKK 72 million in Sales growth was driven by International Operations, where Region Japan & Korea and Region AAMEO contributed to growth. Ryzodeg has now been marketed in 14 countries, and feedback from patients and prescribers is encouraging. The novel mealtime insulin Fiasp, fast-acting insulin aspart, received marketing authorisation from the European Commission on 9 January 2017 and approvals were also received in Norway, Iceland and Canada. Fiasp has now been launched in four countries including recent launches in the UK and Germany. Sales of modern insulin decreased by 1% in both Danish kroner and in local currencies to DKK 23,381 million. The declining sales were driven by North America Operations reflecting the lower sales of Levemir following the introduction of the new-generation insulin Tresiba partly offset by sales growth in International Operations, where Region China and Region AAMEO were the main contributors to growth. Sales of modern insulin and new-generation insulin in total constitute 84% of Novo Nordisk s sales of insulin measured in value. INSULIN MARKET SHARES (volume, MAT) Novo Nordisk s share of total insulin market Novo Nordisk s share of the modern insulin and new-generation insulin market May May May May Global 46% 47% 44% 45% North America Operations 37% 38% 38% 38% USA 37% 37% 38% 38% International Operations 50% 51% 48% 49% Region Europe 45% 46% 44% 46% Region China* 59% 60% 61% 61% Region AAMEO** 57% 57% 51% 52% Region Japan & Korea 49% 49% 49% 48% Region Latin America*** 42% 40% 40% 41% Source: IMS, May 2017 data. * Data for mainland China, excluding Hong Kong and Taiwan. ** Data for 11 selected private markets representing approximately 70% of total Novo Nordisk s diabetes care sales in the region. *** Data for three selected private markets representing approximately 70% of total Novo Nordisk s diabetes care sales in the region.

8 report for the period 1 January 2017 to 30 June 2017 Page 8 of 33 North America Operations Sales of insulin in North America Operations increased by 10% in Danish kroner and by 7% in local currencies. Sales growth was driven by higher sales of Tresiba and NovoLog due to underlying volume growth of both the basal and short-acting insulin market and market share gain in the basal insulin segment. Sales growth was partly countered by lower Levemir sales due to the introduction of Tresiba as well as lower realised prices for basal insulin. 56% of Novo Nordisk s volume of the new-generation insulin and modern insulin in the USA is used in the prefilled devices FlexPen and FlexTouch. International Operations Sales of insulin in International Operations increased by 5% in Danish kroner and by 6% in local currencies. Sales growth was driven by both new-generation insulin and modern insulin, partly offset by declining human insulin sales. Region Europe Sales of insulin in Region Europe increased by 2% in Danish kroner and by 4% in local currencies. Sales were driven by the penetration of Tresiba as well as a positive contribution from Xultophy and NovoRapid across the region, partly offset by contracting Levemir sales reflecting the continued roll-out of Tresiba as well as declining human insulin and NovoMix sales. Region China Sales of insulin in Region China increased by 6% in Danish kroner and by 8% in local currencies. The sales growth is driven by continued growth in the modern insulin products, where Novo Nordisk has improved its market share in each insulin segment, partly offset by declining human insulin sales. Region AAMEO Sales of insulin in Region AAMEO increased by 7% in Danish kroner and by 9% in local currencies. The sales growth is driven by growth of the overall diabetes care market with solid contribution from NovoRapid, NovoMix and the new-generation insulin Tresiba and Ryzodeg. Currently, 63% of Novo Nordisk s insulin volume in the major private markets in Region AAMEO is used in devices. Region Japan & Korea Sales of insulin in Region Japan & Korea increased by 1% in Danish kroner and decreased by 1% in local currencies. The sales development in local currencies reflects lower modern insulin and human insulin sales in the region reflecting the declining insulin volume market in Japan which is offset by continued uptake of Ryzodeg and Tresiba in Japan. Region Latin America Sales of insulin in Region Latin America increased by 14% in Danish kroner and by 11% in local currencies. The sales development reflects strong uptake of Tresiba in selected countries and continued growth of both modern and human insulin. Currently, 46% of Novo Nordisk s insulin volume in the major private markets in Region Latin America is used in devices, primarily FlexPen and FlexTouch.

9 report for the period 1 January 2017 to 30 June 2017 Page 9 of 33 Victoza (GLP-1 therapy for type 2 diabetes) Victoza sales increased by 21% in Danish kroner and by 18% in local currencies to DKK 11,525 million. Sales growth is predominantly driven by North America Operations comprising 91% share of growth. The GLP-1 segment s value share of the total diabetes care market has increased to 10.7% compared with 8.8% 12 months ago. Victoza is the market leader in the GLP-1 segment with a 54% value market share. GLP-1 MARKET SHARES (value, MAT) GLP-1 share of total diabetes care market Victoza share of GLP-1 market May May May May Global 10.7% 8.8% 54% 62% North America Operations 12.6% 10.1% 52% 60% USA 12.7% 10.2% 52% 59% International Operations 6.1% 5.5% 61% 70% Region Europe 10.0% 9.2% 61% 70% Region China* 0.9% 0.8% 61% 53% Region AAMEO** 2.5% 2.1% 51% 58% Region Japan & Korea 4.0% 2.8% 50% 67% Region Latin America*** 4.9% 3.9% 83% 92% Source: IMS, May 2017 data. * Data for mainland China, excluding Hong Kong and Taiwan. ** Data for 11 selected private markets representing approximately 70% of Novo Nordisk s total diabetes care sales in the region. *** Data for three selected private markets representing approximately 70% of Novo Nordisk s total diabetes care sales in the region. North America Operations Sales of Victoza in North America Operations increased by 26% in Danish kroner and by 23% in local currencies. Sales growth is driven by an underlying prescription volume growth of the GLP-1 class of more than 25% in the USA, a positive impact from higher realised prices and inventory build-up. The growth of the GLP-1 market continues to be driven by competing once-weekly products and Victoza. The value share of the GLP-1 class of the total North American diabetes care market has increased to 12.6%. Despite intensified competition, Victoza is still the market leader with a 52% value market share. International Operations Sales of Victoza in International Operations increased by 6% in both Danish kroner and in local currencies. Sales growth is driven by growth in Region AAMEO, Region Latin America and Region China, partly offset by declining sales in Region Europe. The value share of the GLP-1 class of the total International Operations diabetes care market has increased to 6.1% from 5.5% in Victoza is the market leader with a 61% value market share. Region Europe Sales in Region Europe decreased by 2% in Danish kroner and by 1% in local currencies. The sales development reflects intensified competition from a recently introduced once-weekly, partly offset by growth in Germany and the Nordic countries. In Region Europe, the share of the GLP-1 class of the total diabetes care market in value has increased to 10.0%. Despite intensified competition, Victoza remains the market leader in Region Europe with a 61% value market share.

10 report for the period 1 January 2017 to 30 June 2017 Page 10 of 33 Region China Sales in Region China increased by 29% in Danish kroner and by 28% in local currencies. In China, the GLP-1 class represents a modest 0.9% of the total diabetes care market measured in value, and Victoza holds a GLP-1 value market share of 61%. In July 2017, Victoza was the first GLP-1 to be listed on the Chinese National Reimbursement Drug List, and reimbursement is expected to be obtained across China as the provincial drug reimbursement lists are updated accordingly. Region AAMEO Sales in Region AAMEO increased by 32% in Danish kroner and by 31% in local currencies. Sales growth is primarily driven by a number of countries in the Middle East. The value share of the GLP-1 class of the total diabetes care market increased to 2.5%. Victoza is the GLP-1 market leader across Region AAMEO with a value market share of 51%. Region Japan & Korea Sales in Region Japan & Korea increased by 1% in Danish kroner and decreased by 1% in local currencies. The sales development measured in local currencies reflects the intensified competition partly offset by continued expansion of the GLP-1 market in Japan. In Region Japan & Korea, the GLP-1 class represents 4.0% of the total diabetes care market value compared with 2.8% in Victoza remains the leader in the class with a value market share of 50%. Region Latin America Sales in Region Latin America increased by 32% in Danish kroner and by 18% in local currencies. The sales growth reflects the continued expansion of the GLP-1 markets across the region. In Region Latin America, the GLP-1 class represents 4.9% of the total diabetes care market value compared with 3.9% in Victoza remains the leader in the class with a value market share of 83%. Other diabetes care Sales of other diabetes care products, which predominantly consist of oral antidiabetic products and needles, declined by 3% in Danish kroner and by 2% in local currencies to DKK 2,092 million. Declining sales were seen in International Operations, where all regions apart from Region Latin America experienced lower sales, partly offset by increased sales in North America Operations. Saxenda (obesity care) Sales of Saxenda, liraglutide 3 mg for weight management, increased by 98% in Danish kroner and by 90% in local currencies to DKK 1,225 million. Sales growth was driven by both North America Operations and International Operations, where Region Latin America, Region AAMEO and Region Europe contributed to growth. Saxenda was launched in May 2015 in the USA and has obtained broad commercial formulary market access. Saxenda has now been launched in 19 countries.

11 report for the period 1 January 2017 to 30 June 2017 Page 11 of 33 BIOPHARMACEUTICALS, SALES DEVELOPMENT Sales of biopharmaceutical products declined by 19% measured in Danish kroner and by 20% in local currencies to DKK 9,559 million. Declining sales were observed in both North America Operations and International Operations. Haemophilia Sales of haemophilia products decreased by 1% measured in Danish kroner and by 2% in local currencies to DKK 5,315 million. The sales decline was primarily driven by lower NovoSeven sales in Region AAMEO, Region Latin America and Region Japan & Korea as well as North America Operations. This was partly offset by a positive contribution from NovoSeven and the roll-out of NovoEight in Region Europe. Human growth disorders Sales of human growth disorder products decreased by 27% measured in Danish kroner and by 28% in local currencies to DKK 3,325 million. The sales decline reflects the significant positive non-recurring adjustment in the USA in the first quarter of 2016, related to rebates in the Medicaid patient segment for the period , as well as an impact from intensified competition impacting realised prices and to some extent volumes in the USA. The sales decline has been partly offset by a positive impact from International Operations driven by Region Japan & Korea and Region Latin America. Novo Nordisk is the leading company in the global human growth disorder market with a 29% market share measured in volume. Other biopharmaceuticals Sales of other products within biopharmaceuticals, which predominantly consist of hormone replacement therapy-related (HRT) products, declined by 52% measured in Danish kroner and by 53% in local currencies to DKK 919 million. The sales decline reflects a negative impact from the launch of a generic version of Vagifem in the USA in the fourth quarter of DEVELOPMENT IN COSTS AND OPERATING PROFIT The cost of goods sold increased by 5% both in Danish kroner and local currencies to DKK 8,660 million, resulting in a gross margin of 84.8% measured in Danish kroner and 84.5% in local currencies, compared with 84.9% in The gross margin was negatively impacted by lower prices primarily reflecting intensified competition in the insulin segment and lower prices following the non-recurring Medicaid rebate adjustments in 2016, both in the USA, as well as slightly lower capacity utilisation for certain products. The gross margin was impacted by positive contribution from product mix due to higher Tresiba and Victoza sales, partly countered by lower sales of Vagifem following the launch of a generic version in the USA. Sales and distribution costs were broadly unchanged in Danish kroner and declined by 1% in local currencies to DKK 13,548 million. The decline in sales and distribution costs measured in local currencies reflects lower promotional activities in the USA following the Tresiba launch in 2016 and broad cost control initiatives, partly offset by higher

12 report for the period 1 January 2017 to 30 June 2017 Page 12 of 33 costs for legal cases and increased sales and distribution costs in International Operations across all regions. Research and development costs increased by 1% in both Danish kroner and local currencies to DKK 6,703 million. The increase in costs reflects higher development costs due to the initiation of the PIONEER programme for oral semaglutide, where all 10 planned trials have been initiated and a large part of patients are enrolled, partly countered by lower costs related to the completion of the cardiovascular outcomes trial DEVOTE and by lower biopharmaceuticals development costs. The increase in development costs were partially offset by lower research costs following the updated R&D strategy announced in October 2016 leading to the discontinuation of a number of research projects. Administration costs decreased by 1% in Danish kroner and by 2% in local currencies to DKK 1,770 million. The lower administrative costs are mainly related to general cost control initiatives. Other operating income (net) was DKK 467 million compared with DKK 438 million in Operating profit increased by 8% in Danish kroner and by 6% in local currencies to DKK 26,876 million. FINANCIAL ITEMS (NET) items (net) showed a net loss of DKK 1,229 million compared with a net loss of DKK 251 million in In line with Novo Nordisk s treasury policy, the most significant foreign exchange risks for the group have been hedged, primarily through foreign exchange forward contracts. The foreign exchange result was a loss of DKK 1,161 million compared with a loss of DKK 222 million in The development in the first half of 2017 reflects loss on foreign exchange hedging involving especially the US dollar and Chinese yuan versus the Danish krone. The result of net financial items as per 30 June 2017 is reflecting that deferred gains on financial contracts of approximately DKK 1.6 billion, hereof approximately DKK 600 million related to the second half of 2017 and approximately DKK 1 billion related to 2018, have been deferred for later income recognition as the hedged cash flow materialises. CAPITAL EXPENDITURE AND FREE CASH FLOW Net capital expenditure for property, plant and equipment was DKK 3.5 billion compared with DKK 2.8 billion in Net capital expenditure was primarily related to investments in a new production facility for a range of diabetes active pharmaceutical ingredients in Clayton, North Carolina, USA, a new diabetes care filling capacity in

13 report for the period 1 January 2017 to 30 June 2017 Page 13 of 33 Hillerød, Denmark and an expansion of the manufacturing capacity for biopharmaceutical products in Kalundborg, Denmark. Free cash flow was DKK 18.8 billion compared with DKK 19.1 billion in The decrease of 2% compared with 2016 primarily reflects a negative impact from higher income taxes paid. KEY DEVELOPMENTS IN THE SECOND QUARTER OF 2017 Please refer to appendix 1 for an overview of the quarterly numbers in DKK and to appendix 6 for details on sales in the second quarter of Sales in the second quarter of 2017 increased by 4% in Danish kroner and by 3% in local currencies compared with the same period in The growth was driven by new-generation insulin, Victoza and Saxenda partly offset by Vagifem, modern insulin and human growth disorders. From a geographic perspective, sales growth in local currencies was driven by both International Operations and North America Operations, growing by 5% and 2%, respectively. The gross margin was 84.6% in the second quarter of 2017 compared with 85.3% in the same period last year. The decline of 0.7 percentage point of the gross margin reflects a negative price effect in the USA as well as slightly lower capacity utilisation for certain products, partly offset by a positive impact from product mix. Sales and distribution costs decreased by 2% in both Danish kroner and local currencies compared with the same period in 2016 reflecting lower promotional activities in the USA following the Tresiba launch in 2016 and broad cost control initiatives, partly offset by increased sales and distribution costs in International Operations, mainly in Region AAMEO. Research and development costs increased by 2% in both Danish kroner and local currencies compared with the same period in The increase in costs is driven by increased research costs for the early diabetes and obesity portfolio as well as increased development costs for oral semaglutide and other diabetes care development programmes partly offset by lower costs related to the completion of the cardiovascular outcomes trial DEVOTE. Administrative costs decreased by 2% in Danish kroner and by 3% in local currencies compared with the same period in 2016 mainly related to general cost control initiatives. Other operating income (net) was DKK 189 million in the second quarter of 2017 compared with DKK 154 million in the same period last year. Operating profit increased by 7% in Danish kroner and by 6% in local currencies compared with the same period in 2016.

14 report for the period 1 January 2017 to 30 June 2017 Page 14 of 33 OUTLOOK OUTLOOK 2017 The current expectations for 2017 are summarised in the table below: Expectations are as reported, if not otherwise stated Expectations 9 August 2017 Expectations 3 May 2017 Sales growth in local currencies 1% to 3% 0% to 3% as reported Around 3 percentage points lower Around 1 percentage point higher Operating profit growth in local currencies 1% to 5% -1% to 3% as reported Around 4 percentage points lower Around 1 percentage point higher items (net) Loss of around DKK 0.2 billion Loss of around DKK 1.8 billion Effective tax rate 21% to 22% 21% to 23% Capital expenditure Around DKK 9.5 billion Around DKK 10.0 billion Depreciation, amortisation and impairment losses Around DKK 3.0 billion Around DKK 3.0 billion Free cash flow DKK billion DKK billion For 2017, sales growth is now expected to be in the range of 1% to 3% growth, measured in local currencies. This reflects expectations for continued robust performance for Victoza and Tresiba as well as a contribution from Saxenda and Xultophy. This is expected to be partly countered by an impact from lower realised prices in the USA, especially in the basal insulin and growth hormone segments, the loss of exclusivity for Vagifem in the USA, further intensifying competition within diabetes and biopharmaceuticals especially in the USA, as well as adverse macroeconomic conditions in several markets in International Operations. Given the significant 8% depreciation of the US dollar and most other key invoicing currencies versus the Euro and the Danish krone since the report for the first three months of 2017, growth reported in DKK is now expected to be around 3 percentage points lower than the local currency level. For 2018, formulary negotiations with Pharmacy Benefit Managers and managed care organisations in the USA are progressing. Subject to the final outcome of these negotiations, average prices after rebates are expected to be lower compared with the levels in 2017, predominantly driven by the basal insulin segment. The market access for Novo Nordisk s key products is, however, expected to remain broadly unchanged compared to For 2017, operating profit growth is now expected to be in the range of 1% to 5% growth, measured in local currencies. The expectation for operating profit growth primarily reflects the modest outlook for sales growth. The outlook also reflects an increase in second half of 2017 in the sales and distribution cost ratio to support commercialisation efforts for key products as well as in the research and development cost ratio to support the progress of Novo Nordisk s pipeline. Given the current Outlook R&D Sustainability Equity Corporate governance Legal

15 report for the period 1 January 2017 to 30 June 2017 Page 15 of 33 exchange rates versus the Danish krone, growth reported in DKK is now expected to be around 4 percentage points lower than the local currency level. For 2017, Novo Nordisk now expects financial items (net) to amount to a loss of around DKK 0.2 billion. The current expectation reflects losses on non-hedged currencies partly offset by gains associated with foreign exchange hedging contracts, mainly related to the US dollar and Japanese yen versus the Danish krone. The effective tax rate for 2017 is now expected to be in the range of 21-22%, a level broadly similar to the statutory corporate tax rate in Denmark of 22%. Capital expenditure is now expected to be around DKK 9.5 billion in 2017, primarily related to investments in additional capacity for active pharmaceutical ingredient production within diabetes care, a capacity expansion of the diabetes care filling and an expansion of the manufacturing capacity for biopharmaceutical products. Depreciation, amortisation and impairment losses are still expected to be around DKK 3.0 billion. Free cash flow is still expected to be DKK billion. All of the above expectations are based on the assumptions that the global economic and political environment will not significantly change business conditions for Novo Nordisk during 2017, and that currency exchange rates, especially the US dollar, will remain at the current level versus the Danish krone. Please refer to appendix 7 for key currency assumptions. Novo Nordisk has hedged expected net cash flows in a number of invoicing currencies and, all other things being equal, movements in key invoicing currencies will impact Novo Nordisk s operating profit as outlined in the table below. Key invoicing currencies Annual impact on Novo Nordisk s operating profit of a 5% movement in currency Hedging period (months) USD DKK 1,900 million 12 CNY DKK 305 million 6* JPY DKK 185 million 12 GBP DKK 85 million 13 CAD DKK 80 million 11 * Chinese yuan traded offshore (CNH) used as proxy when hedging Novo Nordisk s CNY currency exposure The financial impact from foreign exchange hedging is included in items (net). Outlook R&D Sustainability Equity Corporate governance Legal

16 report for the period 1 January 2017 to 30 June 2017 Page 16 of 33 RESEARCH & DEVELOPMENT UPDATE DIABETES Novo Nordisk submits applications in the USA and the EU for including data from the DEVOTE trial in the Tresiba (NN1250) label In May 2017, Novo Nordisk announced the submission of a supplemental application to the US Food and Drug Administration (FDA) for including data in the label for Tresiba (insulin degludec) from the DEVOTE trial, a long-term, randomised, double-blinded and event-driven trial conducted to confirm the cardiovascular safety of Tresiba compared to insulin glargine U100 when added to standard of care, in people with type 2 diabetes. Furthermore, in June 2017 Novo Nordisk announced the submission of a Type II variation application to the European Medicines Agency (EMA) for including data from the DEVOTE trial in the label for Tresiba. In the DEVOTE trial, the primary endpoint was achieved by demonstrating noninferiority of major adverse cardiovascular events (MACE) with Tresiba compared to insulin glargine U100. The trial thereby confirmed the results of the DEVOTE interim analysis submitted to the FDA in March 2015, on the basis of which Tresiba and Ryzodeg 70/30 were approved in the US in September The primary endpoint of the DEVOTE study was defined as the composite MACE outcome of the first occurrence of cardiovascular death, non-fatal myocardial infarction or non-fatal stroke and showed a hazard ratio of 0.91 in favour of Tresiba relative to insulin glargine U100, with no statistically significant difference between the two treatments. From a mean HbA 1c baseline of 8.4%, the trial showed a similar blood sugar reduction with Tresiba compared to insulin glargine U100 with an end-of-trial treatment difference of 0.01 percentage point between the two treatment arms, thus fulfilling the requirements for objectively comparing hypoglycaemia rates between the two treatments. In the trial, Tresiba demonstrated superiority on the secondary confirmatory endpoint of severe hypoglycaemia: 27% fewer patients in the group treated with Tresiba experienced an episode of severe hypoglycaemia, resulting in a 40% overall rate reduction of total episodes of adjudicated severe hypoglycaemia. Furthermore, patients in the group treated with Tresiba experienced a 53% relative reduction in the rate of nocturnal severe hypoglycaemia. These differences were all statistically significant. Tresiba appeared to have a safe and well-tolerated profile consistent with previous clinical studies conducted with Tresiba. Review of Novo Nordisk s application in the USA for including data from the two SWITCH trials and the DEVOTE trial in the Tresiba (NN1250) label continues Outlook R&D Sustainability Equity Corporate governance Legal

17 report for the period 1 January 2017 to 30 June 2017 Page 17 of 33 In September 2016, Novo Nordisk announced the submission of a supplemental application to the FDA for including data from the two SWITCH phase 3b trials in the label for Tresiba. In the SWITCH trials, the safety profile and efficacy of Tresiba was compared with insulin glargine U100. FDA is continuing the review of the SWITCH application and it is Novo Nordisk s assessment that FDA now plans to review the SWITCH studies in the context of the data from the recently submitted DEVOTE trial. Victoza (NN2211) approved in the EU as the only GLP-1 with a label to include prevention of cardiovascular events In July 2017, the European Commission approved an update to the Victoza (liraglutide) EU label that expands the indication to reflect both improving blood sugar and cardiovascular (CV) events as integral parts of type 2 diabetes treatment. Victoza is the only GLP-1 that is proven to prevent CV events in people with type 2 diabetes and high CV risk. The update of the label was based on the results from the LEADER trial. The trial investigated the long-term effects of Victoza in more than 9,300 people with type 2 diabetes, at high risk of major CV events. In the LEADER trial, Victoza (liraglutide up to 1.8 mg) statistically significantly reduced the risk of CV death, non-fatal myocardial infarction (heart attack) or non-fatal stroke by 13% versus placebo, when added to standard of care. The overall risk reduction was driven by a statistically significant 22% reduction in CV death with Victoza treatment versus placebo and non-significant reductions in non-fatal myocardial infarction and non-fatal stroke. Novo Nordisk received positive 17-2 vote from FDA Advisory Committee that Victoza (NN2211) provides substantial evidence of cardiovascular risk reduction in patients with type 2 diabetes In June 2017, Novo Nordisk announced that the Endocrinologic and Metabolic Drugs Advisory Committee (EMDAC) of the FDA had completed its meeting regarding the supplemental New Drug Application (snda) for inclusion of the data from the cardiovascular outcomes trial LEADER in the label for Victoza. The Advisory Committee voted 19-0 in favour of Victoza on the question: "Do the results of LEADER establish that use of Victoza in patients with type 2 diabetes is not associated with excess cardiovascular risk?" The Advisory Committee voted 17-2 in favour of Victoza on the question: "Does the LEADER trial provide the substantial evidence needed to establish that Victoza (liraglutide 1.8 mg) reduces cardiovascular risk in patients with type 2 diabetes?" The snda for Victoza was submitted to the FDA in October 2016 and regulatory feedback in the US is expected in Q Outlook R&D Sustainability Equity Corporate governance Legal

18 report for the period 1 January 2017 to 30 June 2017 Page 18 of 33 American Diabetes Association (ADA) meeting 9-13 June 2017 in San Diego, California, USA At the 77th annual meeting of the ADA held in San Diego, California, USA results from Novo Nordisk s research and development activities were presented in 60 accepted abstracts. Among the key presentations was an ADA-hosted symposium where detailed data from the DEVOTE study were presented. DEVOTE is the first randomised, doubleblind, treat-to-target, event-driven trial comparing two basal insulins, Tresiba and insulin glargine U100, in adults with type 2 diabetes at high risk of CV disease. The results presented at ADA also comprised additional results from the LEADER trial with Victoza and a cross-trial comparison of the SUSTAIN 1 to 5 with the once-weekly GLP-1 analogue semaglutide. In addition, the phase 3b results from the DUAL VII trial were presented, demonstrating that Xultophy 100/3.6 reduced the risk of hypoglycaemic events and lowered body weight compared with a basal-bolus treatment in people with type 2 diabetes. OBESITY CHMP endorses EU label update of Saxenda (NN8022) based on the LEADER trial In June 2017, Novo Nordisk announced that CHMP, under the EMA, had endorsed an update of the EU label for Saxenda. The update was based on the results from the LEADER trial which investigated the long-term effects of Victoza in people with type 2 diabetes and established cardiovascular disease. The CHMP has previously concluded that, although the Saxenda dosing of liraglutide 3.0 mg was not investigated in the LEADER trial, the results would also be supportive for the assessment of Saxenda for any potential cardiovascular risk. The Saxenda label has been updated with immediate effect to reflect the primary outcome of the LEADER trial. Novo Nordisk reports up to 13.8% weight loss in people with obesity receiving semaglutide (NN9536) in phase 2 trial In June 2017, Novo Nordisk announced the headline results from a 52-week doubleblind phase 2 clinical trial with once-daily subcutaneous semaglutide investigating safety and potential for inducing and maintaining weight loss in people with obesity. In the trial, 957 people with obesity were randomised to treatment with doses of semaglutide between 0.05 to 0.4 mg/day or placebo. Liraglutide 3.0 mg/day was included for comparison. Approximately 100 people were included in each active treatment arm in combination with diet and exercise. All people in the trial were treated for 52 weeks followed by a 7-week follow-up period. From a mean baseline weight of around 111 kg and a body mass index of approximately 39 kg/m2, a weight loss up to 17.8 kg was observed after 52 weeks of treatment with semaglutide. This corresponded to an estimated 13.8% weight loss compared to the weight loss of 2.3% achieved by diet, exercise and placebo alone, with all treatment Outlook R&D Sustainability Equity Corporate governance Legal

19 report for the period 1 January 2017 to 30 June 2017 Page 19 of 33 arms adjusted for people discontinuing treatment in the study. The results from the liraglutide 3.0 mg treatment arm were broadly in line with previously reported data. In the trial, once-daily semaglutide appeared to have a well-tolerated safety profile, with the most common adverse events being gastrointestinal side effects. Novo Nordisk is now preparing the phase 3 programme with semaglutide with the objective to confirm the results, and the phase 3 programme is expected to begin in 2018 BIOPHARMACEUTICALS Novo Nordisk received US FDA approval of REBINYN (nonacog beta pegol; N9-GP; NN7999) In May 2017, Novo Nordisk announced that the FDA had approved the Biologics License Application for REBINYN for the treatment of adults and children with haemophilia B. REBINYN is the brand name for nonacog beta pegol, N9-GP, in the USA. REBINYN is indicated for on-demand treatment and control of bleeding episodes and the perioperative management of bleeding around the time of surgery in adults and children with haemophilia B. The efficacy and safety evaluation was based on 115 patients across the five paradigm clinical trials, and the approval follows the Blood Products Advisory Committee meeting held 4 April Novo Nordisk received EU approval of Refixia (nonacog beta pegol; N9-GP; NN7999) In June 2017, Novo Nordisk announced that the European Commission had granted marketing authorisation for Refixia for the treatment of adolescents and adults with haemophilia B. The authorisation covers all 28 European Union member states. Refixia is the brand name for nonacog beta pegol, N9-GP, in the EU. Refixia is indicated for prophylaxis, on-demand treatment of bleeding and surgical procedures in adolescent (>12 years of age) and adult patients with haemophilia B (congenital factor IX deficiency). The efficacy and safety evaluation was based on 115 patients across the five paradigm clinical trials, and the marketing authorisation follows the positive opinion from the CHMP, under the EMA, provided 24 March Novo Nordisk submits New Drug Application for nonacog beta pegol (N9-GP; N7999) in Japan In July 2017, Novo Nordisk submitted the New Drug Application (NDA) to the Japanese Ministry of Health, Labour and Welfare for nonacog beta pegol (N9-GP). The filing of nonacog beta pegol is based on the results from the paradigm clinical trial programme, which involved 115 patients with severe or moderately severe haemophilia B. Nonacog beta pegol was found to be efficacious in routine prophylaxis, treatment of bleeding episodes and surgery for adults, adolescents and children. Furthermore, nonacog beta pegol appeared to be well-tolerated and no safety concerns were identified. Outlook R&D Sustainability Equity Corporate governance Legal

20 report for the period 1 January 2017 to 30 June 2017 Page 20 of 33 Positive results from phase 3 trial with long-acting growth hormone somapacitan (NN8640) for treatment of Adult Growth Hormone Deficiency (AGHD). In August 2017, Novo Nordisk completed the main phase of REAL 1, the pivotal phase 3 trial with the long-acting recombinant growth hormone, somapacitan. REAL 1 was a 34- week trial that enrolled 301 treatment-naïve adults with growth hormone deficiency. The trial was a placebo-controlled efficacy trial with the primary endpoint being change in truncal fat percentage from baseline to 34 weeks. At the end of the trial, there was a statistically significant difference between somapacitan and placebo, with the somapacitan-treated patients showing a greater reduction in truncal fat percentage. Somapacitan also demonstrated significant beneficial effects on other body composition measures such as lean body mass (LBM) and visceral fat tissue. The safety profile observed in this study was consistent with that known for Norditropin. Novo Nordisk will soon finalise recruitment in REAL 3, a phase 2 study in prepubertal growth hormone deficient (GHD) children evaluating weekly treatment with once-weekly somapacitan versus daily injections of Norditropin. In addition, Novo Nordisk is planning for the pivotal phase 3 somapacitan programs in GHD children as well as in children born small for gestational age (SGA). SUSTAINABILITY UPDATE The number of employees in Novo Nordisk decreased by 2.2% The number of full-time equivalent employees at the end of the first six months of 2017 decreased by 2.2% compared with 12 months ago. The total number of employees was 41,833, corresponding to 41,385 full-time positions. The decrease is the result of workforce reductions, effectuated in the last quarter of 2016, in North America Operations, Region Europe and R&D, and the transfer of the activities and employees of the Steno Diabetes Center to the Capital Region of Denmark. Areas in which there was notable growth include Region AAMEO and the Global Service Centre in Bangalore. Novo Nordisk replaces cartridge holders for insulin pens to protect patient safety In June 2017, Novo Nordisk detected a potential safety issue with some batches of NovoPen Echo and NovoPen 5, used for insulin treatment by people with diabetes. The insulin cartridge holder may crack or break if exposed to certain chemicals in for example cleaning agents, and as a result the pen may give a slightly smaller dose of insulin than expected. The risk that a patient will experience high blood sugar over the lifetime of an affected pen is less than 0.1%. The affected pens had been distributed in 38 countries. In the interest of patient safety, Novo Nordisk immediately put in place measures by which cartridge holders distributed to patients could be replaced. Affected pens in stock at wholesalers and pharmacies have been recalled. The issue has thereby been mitigated. Novo Nordisk signs agreement that secures CO 2 neutral steam and heating for the company s largest production facility In June 2017, Novo Nordisk signed a 20-year contract with the Danish energy company, DONG Energy, to secure stable supplies of CO 2 neutral steam and heating to the Outlook R&D Sustainability Equity Corporate governance Legal