Slide 1 First nine months of 2017 London 2 November 2017 Manato Ohara, diagnosed with type 1 diabetes Kanagawa, Japan
Slide 2 Agenda Highlights and key events Sales update R&D update Financials and outlook
Slide 3 Forward-looking statements Novo Nordisk s reports filed with or furnished to the US Securities and Exchange Commission (SEC), including the company s Annual Report 2016 and Form 20-F, which are both filed with the SEC in February 2017 in continuation of the publication of the Annual Report 2016, and 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 Risk Management on pp 40-43 of the Annual Report 2016. 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
Slide 4 Highlights First nine months of 2017 Sales development Sales increased by 2% in Danish kroner and 3% in local currencies International Operations grew by 5% and accounted for 97% share of growth in local currencies North America Operations sales were broadly unchanged and accounted for 3% share of growth in local currencies Tresiba and Victoza accounted for the largest share of growth and grew by 118% and 15% in local currencies, respectively Research and Development Semaglutide demonstrated superiority to dulaglutide in the SUSTAIN 7 trial on both glucose control and weight loss Semaglutide received a positive 16-0 vote in favour of approval from an FDA Advisory Committee Victoza approved in the US as the only GLP-1 with a label to include prevention of cardiovascular events Tresiba label update approved in the EU new label reflects significant reduction in the risk of severe hypoglycaemia Financials Operating profit increased by 5% in Danish kroner and 6% in local currencies Diluted earnings per share increased by 5% to 12.03 DKK per share 2017 financial outlook: Sales growth is now expected to be 2-3% measured in local currencies (now around 2% lower reported) Operating profit growth is now expected to be 3-6% measured in local currencies (now around 3% lower reported) 2018 preliminary financial outlook: Sales and operating profit growth in local currencies are expected to be low to mid single digit (around 3% and 4% lower reported, respectively)
Slide 5 Executive management as of 1 October 2017 President & CEO Lars Fruergaard Jørgensen Research & Development Product Supply Commercial Strategy & Corporate Affairs North America Operations International Operations Finance, Legal & Investor Relations Business Services & Compliance Mads Krogsgaard Thomsen Henrik Wulff Camilla Sylvest Doug Langa 1 Maziar Mike Doustdar 1 Jesper Brandgaard Lars Green 1 Not registered with the Danish Business Authority
Slide 6 Sales growth derived from diabetes and obesity care, driven by Tresiba, Victoza and Saxenda Sales as reported First nine months of 2017 Growth analysis First nine months of 2017 Human growth hormone (25%) Other biopharmaceuticals Haemophilia 3% 2% (54%) +1% 7% 6% Obesity 9% 11% +80% 2% 79% 81% Sales of DKK 83.7 billion (+2%) Diabetes care +6% Local currencies Growth Share of growth New-generation insulin 1 129% 165% Modern insulin (3%) (41%) Human insulin (5%) (19%) Victoza 15% 103% Other diabetes care 2 (3%) (4%) Total diabetes care 7% 204% Obesity (Saxenda ) 77% 37% Diabetes and obesity care total 8% 241% Haemophilia 3 1% 5% Human growth hormone products (24%) (73%) Other biopharmaceuticals 4 (54%) (73%) Biopharmaceuticals (18%) (141%) Total 3% 100% 1 Comprises Tresiba, Xultophy, Ryzodeg and Fiasp 2 Primarily NovoNorm and needles 3 Comprises NovoSeven, NovoEight and NovoThirteen 4 Primarily Vagifem and Activelle
Slide 7 Total Novo Nordisk basal insulin volume market share in the US of 32% Weekly TRx volume market shares in the US glargine U100 Basal volume TRx MS 70% 60% 50% 40% 30% 20% 10% 0% 01/01/2016 Jan 2016 NN Total Basal Levemir Tresiba glargine U300 biosimilar glargine U100 Oct 2017 Note: The graph does not show NPH, which accounts for the residual market share Source: IMS weekly Xponent Plantrak (excludes Medicaid), 13 Oct 2017 TRx volume: Insulin volume in mega units (MU) associated with total number of prescriptions; MS: Market share 49% 32% 22% 9% 9% 4% Tresiba launch in the US Tresiba New-to-Brand Prescriptions market share of around 12% Tresiba TRx volume market share is now 9.2% and Novo Nordisk aims to reach a TRx volume market share of around 10% by the end of 2017 Tresiba formulary access expected to remain largely unchanged at around 70% for commercial and Medicare Part D combined in 2018 Recently announced Part D changes to the formulary access for competing basal insulins provide opportunity for Tresiba to grow volume market share in 2018 Source: IMS weekly Xponent Plantrak (excludes Medicaid), 13 Oct 2017
Slide 8 Victoza continues strong growth trajectory in the US driven by GLP-1 market volume growth of 24% US GLP-1 market development MAT GLP-1 TRx volume (million) 10 8 6 4 2 0 Aug 2014 Total TRx Growth rate MAT volume growth rate 35% Aug 2017 30% 25% 20% 15% 10% 5% 0% US GLP-1 market monthly TRx GLP-1 TRx volume (000) 400 350 300 250 200 150 100 50 0 Aug 2014 Victoza albiglutide exenatide dulaglutide Aug 2017 US GLP-1 volume market share GLP-1 TRx market share 100% 80% 60% 40% 20% 0% Aug 2014 Victoza albiglutide exenatide dulaglutide 44% 37% 15% 4% Aug 2017 Source: IMS NPA monthly, Aug 2017
Slide 9 Sales growth driven by International Operations with all regions contributing to growth Sales as reported First nine months of 2017 Region Region Latin America Japan & Korea +16% (1%) Region China +4% Region AAMEO +4% Region Europe +2% 10% 11% 19% 5% 3% 52% Sales of DKK 83.7 billion (+2%) North America Operations +0% Growth analysis First nine months of 2017 Local currencies Growth Share of growth North America Operations 0% 3% Hereof USA 0% (1%) International Operations 5% 97% Region Europe 4% 26% Region AAMEO 6% 25% Region China 6% 24% Region Japan & Korea 2% 4% Region Latin America 17% 18% Total sales 3% 100% AAMEO: Africa, Asia, Middle East & Oceania
Slide 10 Basal insulin market penetration with Tresiba supported by Xultophy launches Tresiba value market share of basal insulin segment in selected countries outside the US 40% Switzerland Japan Mexico Netherlands Spain Denmark UK Argentina Brazil Greece Italy 41% Combined value market share of Tresiba and Xultophy in selected countries Switzerland Sweden Greece Tresiba share France (Xultophy only) 60% 58% 30% 20% 10% 12% 30% 24% 23% 19% 11% 30% 28% 21% 6% 40% 20% 12% 41% 23% 0% 0 10 20 30 40 50 Months from launch 0% 0 10 20 30 40 50 Months from launch 1 Note: Limited IMS coverage in India Source: IMS Monthly value figures, Aug 2017 Source: IMS Monthly value figures, Aug 2017 1 Switzerland, Sweden and Greece: Months from Tresiba launch. France: Months from Xultophy launch (Tresiba is not launched in France).
Slide 11 Semaglutide demonstrates superiority to dulaglutide in SUSTAIN 7 trial on both glucose control and weight loss SUSTAIN 7 trial design Key results and next steps 1,196 people with type 2 diabetes 1 Semaglutide 0.5 mg Dulaglutide 0.75 mg Semaglutide 1.0 mg Dulaglutide 1.5 mg 40 weeks Sema 0.5 mg Dula 0.75 mg Sema 1.0 mg Dula 1.5 mg HbA 1c reduction 1.5% * 1.1% 1.8% * 1.4% HbA 1c 7% 68% 52% 79% 67% HbA 1c 6.5% 49% 34% 67% 47% Weight loss 4.6 kg * 2.3 kg 6.5 kg * 3.0 kg Weight loss 5% 44% 23% 63% 30% 1 Inclusion criteria: Male or female, age 18 yrs, stable treatment with metformin, HbA1c 7.0 10.5% Note: The study includes comparison of high dose semaglutide with high dose dulaglutide and low dose semaglutide with low dose dulaglutide Next steps: Regulatory feedback expected in both the US and the EU in Q4 2017 * Statistically significant greater reduction than dulaglutide Sema: Semaglutide; Dula: Dulaglutide
Slide 12 Recent regulatory approvals obtained for Victoza, Fiasp and Tresiba Victoza CV indication approved in the US Fiasp approved in the US Tresiba hypoglycaemia label updated in the EU Victoza the only type 2 diabetes treatment indicated to reduce MACE New fast-acting mealtime insulin Fiasp approved in the US Tresiba label update in the EU to include significant reduction in the risk of severe hypoglycaemia Updated Victoza label: 13% reduction of the risk of major adverse cardiovascular events vs placebo 22% reduction in cardiovascular death vs placebo Next steps: Launch of Fiasp in the US expected in Q4 2017 Updated Tresiba label: 40% reduction of severe hypoglycaemia vs glargine U100 53% reduction of nocturnal severe hypoglycaemia vs glargine U100 CV: Cardiovascular; MACE: Major adverse cardiovascular events
Slide 13 Other key development milestones Semaglutide received positive 16-0 vote in favour of approval from an FDA Advisory Committee Main phase of the phase 3a trial with NovoEight in paediatric previously untreated patients with haemophilia A completed Concizumab phase 2 trials initiated in patients with Haemophilia A and patients with Haemophilia A and B patients with inhibitors FDA: Food and Drug Administration
Slide 14 Significant regulatory news flow in 2017 Project Q1 2017 Q2 2017 Q3 2017 Q4 2017 Tresiba Once-weekly semaglutide Victoza Fiasp Semaglutide obesity N9-GP Concizumab Somapacitan Japan submission EU approval US resubmission Phase 1 data Diabetes Obesity Haemophilia Growth disorders US & EU submission of DEVOTE data 1 EU SWITCH approval Phase 2 data US approval EU approval REAL 1 phase 3a data 2 Results available EU DEVOTE SUSTAIN 7 phase 3b data LEADER US approval LEADER EU approval US regulatory decision Japan submission 1 It is Novo Nordisk s assessment that FDA plans to review the SWITCH studies in the context of the data from the recently submitted DEVOTE trial. Feedback expected by the end of Q1 2018. 2 Study conducted in adult growth hormone disorder CHMP: Committee for Medicinal Products for Human Use in the EU Regulatory milestone FDA Advisory Committee US regulatory decision CHMP opinion
Slide 15 Financial results first nine months 2017 DKK million 9M 2017 9M 2016 Change (reported DKK) Change (local currency) Sales 83,704 82,208 2% 3% Gross profit 70,772 69,943 1% 2% Gross margin 84.6% 85.1% Sales and distribution costs 20,045 20,468 (2%) (1%) Percentage of sales 23.9% 24.9% Research and development costs 10,031 10,093 (1%) 0% Percentage of sales 12.0% 12.3% Administration costs 2,666 2,796 (5%) (4%) Percentage of sales 3.2% 3.4% Other operating income, net 890 640 39% 41% Operating profit 38,920 37,226 5% 6% Operating margin 46.5% 45.3% Financial items (net) (811) (370) Profit before income tax 38,109 36,856 3% Income taxes 8,232 7,630 8% Effective tax rate 21.6% 20.7% Net profit 29,877 29,226 2% Diluted earnings per share (DKK) 12.03 11.50 5%
Non-hedged currencies Index (1 Jan 2016 = 100) Hedged currencies Index (1 Jan 2016= 100) Investor presentation First nine months of 2017 Slide 16 Currency impact in 2017 driven by development in both hedged and unhedged currencies 120 115 110 105 100 95 90 85 80 75 USD/DKK CNY/DKK JPY/DKK GBP/DKK CAD/DKK Hedged 2016 Currencies average 2017 average 2 Spot rate 2 Impact of a 5% move 3 Hedging (months) USD 1 667 666 641 1,900 12 CNY 1 100 98.0 96.4 305 6 4 JPY 1 6.5 5.9 5.6 185 12 GBP 1 876 851 839 85 12 CAD 1 511 508 498 80 11 160 140 RUB/DKK INR/DKK ARS/DKK BRL/DKK TRY/DKK Non-hedged 2016 Currencies average 2017 average 2 Spot rate 2 ARS 1 0.4 0.4 0.4 120 TRY 1 224.9 184.6 167.6 100 INR 1 10.0 10.2 9.9 80 RUB 1 10.3 11.4 11.0 60 BRL 1 205.5 209.8 194.6 40 1 2 3 4 1 2 2016 2017 3 1 DKK per 100; 2 As of 27 October 2017; 3 Impact on operating profit in the next 12 months of a 5% immediate currency move. DKK million per annum; 4 Chinese Yuan traded offshore (CNH) Note: Operating profit impact of one of the non-hedged currencies appreciating 5% is in the range of DKK -15 to +40 million
Slide 17 Financial outlook for 2017 Sales growth - local currencies Expectations 1 November 2017 2% to 3% Previous expectations 9 August 2017 1% to 3% Sales growth - reported Operating profit growth - local currencies Operating profit growth - reported Financial items (net) Effective tax rate Capital expenditure Depreciation, amortisation and impairment losses Free cash flow Around 2 percentage points lower 3% to 6% Around 3 percentage points lower Loss of around DKK 0.3 billion 21-22% Around DKK 9 billion Around DKK 3.5 billion Around DKK 30-34 billion Around 3 percentage points lower 1% to 5% Around 4 percentage points lower Loss of around DKK 0.2 billion 21-22% Around DKK 9.5 billion Around DKK 3 billion Around DKK 29-33 billion The financial outlook is based on an assumption of a continuation of the current business environment and given the current scope of business activities and has been prepared assuming that currency exchange rates remain at the level as of 27 October 2017
Slide 18 The share repurchase programme for 2017 expanded due to the increased expectations for cash flow generation DKK billion 45 40 35 30 25 20 15 10 5 0 Annual cash return to shareholders 14 Share repurchase Free cash flow 15 17 10 12 13 Interim dividend Free cash flow guidance 15 8 16 Dividend 17 7 11 2013 2014 2015 2016 2017 Cash return priorities The total 2017 share repurchase programme has been expanded based on the increased expectations for cash flow generation in 2017 with DKK 1.0 billion to DKK 17 billion Dividend to match pharma peer-group Dividend distributed twice a year as interim in August and final in connection with the Annual General Meeting in March the following year Share repurchase to at least correspond to remaining cash flow Note: Interim dividend for 2017 of DKK 3.00 per share of DKK 0.20 was paid in August 2017. For 2017 expected free cash flow is DKK 30-34 billion. Share repurchase programmes run for 12 months starting February until end January of the following year.
Slide 19 Closing remarks > Solid leadership positions and continued market opportunities 27% Novo Nordisk value market share in diabetes care and solid leadership position ~4% insulin market volume growth 45% Novo Nordisk insulin volume market share with leadership position across all regions >20% GLP-1 volume market growth 51% Novo Nordisk GLP-1 volume market share with global leadership position 23 countries successfully launched Saxenda Promising pipeline and product launches The only company with a full portfolio of novel insulin and GLP-1 products Semaglutide portfolio offers expansion opportunity with both injectable and oral administration Xultophy supports promising outlook for insulin and GLP-1 combination therapy Saxenda and multiple clinical stage development projects hold potential within obesity Broad pipeline within haemophilia Source: IMS MAT Aug 2017 volume and value (DKK) figures
Slide 20 Investor contact information Share information Novo Nordisk s B shares are listed on the stock exchange in Copenhagen under the symbol NOVO B. Its ADRs are listed on the New York Stock Exchange under the symbol NVO. For further company information, visit Novo Nordisk on the internet at: novonordisk.com Upcoming events 21 Nov 2017 Capital Markets Day 01 Feb 2018 Financial statement for 2017 22 Mar 2018 Annual General Meeting 02 May 2018 Financial statement for the first three months of 2018 08 Aug 2018 Financial statement for the first six months of 2018 01 Nov 2018 Financial statement for the first nine months of 2018 Investor Relations contacts Novo Nordisk A/S Investor Relations Novo Allé, DK-2880 Bagsværd Peter Hugreffe Ankersen +45 3075 9085 phak@novonordisk.com Hanna Ögren +45 3079 8519 haoe@novonordisk.com Anders Mikkelsen +45 3079 4461 armk@novonordisk.com Christina Kjær +45 3079 3009 cnje@novonordisk.com In North America: Kasper Veje +1 609 235 8567 kpvj@novonordisk.com