Slide 1. Novo Nordisk Annual General Meeting. 18 March Shanghai part of Cities Changing Diabetes

Transcription

1 Slide 1 Novo Nordisk Annual General Meeting 18 March 2016 Shanghai part of Cities Changing Diabetes

2 Slide 2 Board of Directors Göran Ando Jeppe Christiansen Bruno Angelici Sylvie Grégoire Liz Hewitt Thomas Koestler Eivind Kolding Mary Szela Liselotte Hyveled Anne Marie Kverneland Søren Thuesen Pedersen Stig Strøbæk

3 Slide 3 Executive management Lars Rebien Sørensen Jesper Brandgaard Lars Fruergaard Jørgensen Jakob Riis Mads Krogsgaard Thomsen Maziar Mike Doustdar Jerzy Gruhn Jesper Høiland Henrik Wulff

4 Torben Jensen Slide 4

5 Klaus Søgaard Slide 5

6 Slide 6 Agenda - Annual General Meeting The Board of Directors oral report on the company s activities in the past financial year 2. Presentation and adoption of the audited Annual Report Approval of remuneration of the Board of Directors for 2015 and remuneration level for A resolution to distribute the profit according to the adopted Annual Report Election of members to the Board of Directors, including chairman and vice chairman 6. Appointment of auditor 7. Proposals from the Board of Directors 8. Any other business

7 Lars Rebien Sørensen President & CEO Slide 7

8 Slide 8 North America is the main contributor to growth Sales as reported Full year 2015 Region China +22% Japan & Korea +11% 9% 5% Growth analysis Full year 2015 Local currencies Growth Share of growth North America 11% 62% Europe 2% 4% International Operations +19% 14% 53% North America +32% International Operations 15% 26% Region China 4% 4% Europe +3% 19% Japan & Korea 5% 4% Total sales 8% 100% Sales of DKK billion (+22%)

9 Slide 9 Growth is driven by modern insulin and Victoza Sales as reported Full year 2015 Growth analysis Full year 2015 Other Norditropin +28% +20% 3% 7% 4% Haemophilia +14% 10% 11% 79% 79% Diabetes and obesity care +22% Sales of DKK billion (+22%) Local currencies Growth Share of growth New-generation insulin 1 109% 10% Modern insulin 7% 41% Human insulin (1%) (1%) Victoza 18% 32% Other diabetes and obesity care 2 5% 2% Diabetes and obesity care 9% 84% Haemophilia 3 3% 4% Norditropin 8% 7% Other biopharmaceuticals 4 13% 5% Biopharmaceuticals 6% 16% Total 8% 100% 1 Comprises Tresiba, Ryzodeg and Xultophy 2 Predominantly oral antidiabetic products, needles and Saxenda 3 Comprised NovoSeven, NovoEight and NovoThirteen 4 Predominantly hormone replacement therapy

10 Slide 10 Roll-out of Tresiba is progressing and Tresiba is now also launched in the US 35% 30% 25% 20% 15% 10% 5% 0% Switzerland Japan Tresiba value share of basal insulin segment in selected countries Mexico Netherlands 22% Sweden Denmark 25% 7% UK Argentina Months from launch Brazil India 27% Greece Italy 33% 15% 17% 13% 13% 5% 4% 4% Source: IMS Monthly value figures

11 Slide 11 Steady Saxenda uptake in the US since launch and Saxenda is now launched in five additional countries Prescription volume uptake of anti-obesity medications recently launched in the US TRx Volume(000) Contrave Belviq Qsymia March 2015 Note: IMS reporting for new launches may reflect data instability due to small volume and/or supplier reporting Source: IMS NPA TRx, weekly data, January 2016 Saxenda January 2016

12 Slide 12 R&D

13 Slide 13 Key milestones within research and development Approved in the US in September and launched in the US in January 2016 Launched in the first European countries and filed for approval in the US Faster-acting insulin aspart Injectable semaglutide Oral semaglutide Filed for approval in both the US and Europe following successful completion of phase 3a trials Showed superior efficacy over comparator products in phase 3 trials Phase 3 development initiated in 2016 following very encouraging results in proof-of-concept phase 2 trial Launched in the US in 2015

14 Multipurpose facility in Clayton, North Carolina, US Slide 14

15 Slide 15 Other major expansion projects announced in 2015 Diabetes and obesity filling facility in Hillerød, Denmark Tableting and packaging facility in Måløv, Denmark NovoSeven API facility in Kalundborg, Denmark

16 Slide 16 All Novo Nordisk production plants to run on renewable power in 2020

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18 Slide 18 Consolidated income statement DKK million Change in % Sales 107,927 88,806 22% Cost of goods sold 16,188 14,562 11% Sales and distribution costs 28,312 23,223 22% Research and development costs 13,608 13,762 (1%) Administration costs 3,857 3,537 9% Other operating income, net 3, N/A Non-recurring income from the IPO of NNIT 2, Operating profit 49,444 34,492 43% Net financials (5,961) (396) N/A Profit before income taxes 43,483 34,096 28% Income taxes 8,623 7,615 13% Net profit 34,860 26,481 32%

19 Slide 19 Consolidated statement of changes in equity DKK million Equity at the beginning of the year 40,294 42,569 Net profit for the year 34,860 26,481 Dividends (12,905) (11,866) Purchase of treasury shares (17,229) (14,728) Share-based payment Movement in deferred gain/loss on cash flow hedges 1,535 (3,454) Other adjustments (28) 921 Equity at the end of the year 46,969 40,294 Equity ratio 51% 52%

20 Slide 20 Consolidated balance sheet per 31 December 2015 Assets (DKK million) Liabilities (DKK million) Non-current assets 36,659 30,769 Equity 46,969 40,294 Inventories, trade receivables and other current assets Cash at bank and on hand 38,217 31,897 Non-current liabilities 3,957 3,079 16,923 14,396 Current liabilities 40,873 33,689 Total assets 91,799 77,062 Total equity and liabilities 91,799 77,062

21 Slide 21 Remuneration of executives for 2015 Fixed base salary Between DKK 2.5 and DKK 10.6 million Short-term cash-based incentive programme Between DKK 2.8 and DKK 10.6 million Long-term share-based incentive programme Novo Nordisk B shares corresponding to 12 months of fixed base salary plus pension contribution for the CEO, 9 months of fixed base salary plus pension contribution for the other registered members of Executive Management as per March 1, 2015 and 8 months of fixed base salary plus pension contribution for the non-registered members of Executive Management Pension & other benefits

22 Slide 22 Financial outlook for 2016 Sales growth - local currencies Sales growth - reported Operating profit growth - local currencies Operating profit growth - reported Net financials Effective tax rate Capital expenditure Depreciation, amortisation and impairment losses Free cash flow Expectations 3 February % Around 1 percentage point lower 5-9% Around 1 percentage point lower Loss of around DKK 1.3 billion 20-22% Around DKK 7.0 billion Around DKK 3.0 billion DKK 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 1 February 2016

23 Slide 23 Updated long-term financial targets Performance against long-term financial targets Average Result Previous Target 2 Updated Target Operating profit growth 23% Operating profit growth in local currencies 3 15% 43% 14% 15% 10% Operating margin 40% 46% 40% N/A 4 Operating profit after tax to net operating assets 111% 149% 125% 125% Cash to earnings (three year average) 97% 97% 90% 90% Note: The targets have been revised based on an assumption of a continuation of the current business environment 1 Simple average of reported figures ; 2 The long-term financial targets were last updated in connection with the 2012 annual results; 3 Adjusted for the partial divestment of NNIT in 2015; 4 A new target has not been established, as operating margin is expected to remain around 44%

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25 Slide 25 E-voter voting device

26 Slide 26 Agenda item 2 Adoption of the audited Annual Report 2015

27 Slide 27 Agenda item 2 Dagsordenens punkt 2 Adoption of the audited Annual Report 2015 Godkendelse af den reviderede årsrapport for 2015 Votes (stemmer) % of cast votes (% af afgivne stemmer) For (For) 126,516,259, % Against (Imod) 3,038, % Blank (Blank) 58,401, %

28 Slide 28 Agenda item Approval of actual remuneration for 2015 Board Audit Committee Nomination Committee Remuneration Committee Multiplier 1 DKK Multiplier 1 DKK Multiplier 1 DKK Multiplier 1 DKK Chair ,800, , , ,000 2 Vice chair ,200,000 N/A N/A N/A N/A N/A N/A Member , , , ,000 Travel allowances for international board members for meetings held in Denmark EU-based Board members EUR 3,000 per meeting Non EU-based Board members EUR 6,000 per meeting Social security taxes 1 Multipliers of the fixed annual base fee 2 Chaired by the Chairman of the Board and therefore no additional fee is paid in 2015

29 Slide 29 Agenda item Approval of remuneration level for 2016 Board Audit Committee Nomination Committee Remuneration Committee Multiplier 1 DKK Multiplier 1 DKK Multiplier 1 DKK Multiplier 1 DKK Chair ,800, , , ,000 Vice chair ,200,000 N/A N/A N/A N/A N/A N/A Member , , , ,000 Proposed changes Multipliers for the Remuneration Committee increased The Board chairman shall receive a fee if the Board chairman is also a member of the Remuneration Committee or Nomination Committee 1 Multipliers of the fixed annual base fee

30 Slide 30 Agenda item Approval of remuneration level for 2016 Travel allowances for board members and board committee members In home country with 5 hours or more air travel Outside home country but on home continent On another continent than the home country EUR 5,000 per meeting EUR 5,000 per meeting EUR 10,000 per meeting Proposed changes General level of travel allowances increased Travel allowances now also provided for board committee members when traveling to committee meetings and for Danish based board members

31 Slide 31 Agenda item 3.2 Adoption of the remuneration level for 2016 for the Board of Directors

32 Agenda item 4 Adoption of the resolution to distribute the profit according to the adopted Annual Report 2015 Slide 32 DKK million 2015 Net profit in the parent company 34,623 Proposed appropriation: Transfer to net revaluation reserve (3,050) Transfer to retained earnings 21,443 Proposed dividends 16,230 Total appropriation 34,623 Proposed dividend/net profit (payout ratio) 46.6% Proposed dividend per share in DKK 6.40

33 Slide 33 Agenda item 4 Adoption of the resolution to distribute the profit according to the adopted Annual Report 2015

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35 Slide 35 Agenda item 5 Election of members to the Board of Directors, including chairman and vice chairman 5.1 Election of chairman 5.2 Election of vice chairman 5.3 Election of other members to the Board of Directors

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37 Göran Ando Chairman Slide 37

38 Jeppe Christiansen Vice chairman Slide 38

39 Bruno Angelici, Sylvie Grégoire, Liz Hewitt & Mary Szela Slide 39

40 Brian Daniels Slide 40

41 Slide 41 Brian Daniels Management duties Senior advisor with the Boston Consulting Group, US Venture partner with 5AM Venture Management, LLC, US Member of the Scientific Advisory Board of Novira Therapeutics Inc., US Former positions Various management positions at Bristol-Myers Squibb Pharmaceutical group, US, from 2000 to 2014, including: Senior Vice President for Global Development and Medical Affairs from 2008 to 2014 Senior Vice President for Global Development of Operations from 2004 to 2008 Education M.D., Washington University, St. Louis, US, 1987 B.S in Life Sciences, Massachusetts Institute of Technology (MIT), Cambridge, US, 1981 M.A. in Metabolism and Nutritional biochemistry, MIT, Cambridge, US, 1981 Born February 1959, US national

42 Liselotte Hyveled, Anne Marie Kverneland, Søren Thuesen Pedersen & Stig Strøbæk Slide 42

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44 Slide 44 Agenda item 6 Appointment of PricewaterhouseCoopers as auditor

45 Slide 45 Agenda item 7 Proposals from the Board of Directors Re item 7.1 Reduction of the Company s B share capital Re item 7.2 Amendment to the Articles of Association; abolishment of bearer shares Re item 7.3 Authorisation to the Board of Directors to increase the Company s share capital Re item 7.4 Authorisation to repurchase own shares Re item 7.5 Amendments to the Articles of Association Re item 7.6 Adoption of revised Remuneration Principles

46 Slide 46 Agenda item 7.1 Reduction of the Company s B share capital Reduction of the Company s B share capital from DKK 412,512,800 to DKK 402,512,800 by cancellation of 50,000,000 B shares of DKK 0.20 each from the Company s own holdings of B shares at a nominal value of DKK 10,000,000. After reduction of the B share capital, the Company s share capital will amount to DKK 510,000,000, divided into A share capital of DKK 107,487,200 and B share capital of DKK 402,512,800.

47 Slide 47 Agenda item 7.2 Amendment of the Articles of Association; abolishment of bearer shares

48 Slide 48 Agenda item 7.3 Authorisation to the Board of Directors to increase the Company s share capital Extension of the authorisations of the Board of Directors, for a period of three years until 18 March 2019, to increase the share capital. The maximum share capital increase is limited to a total of nominally DKK 53,000,000.

49 Slide 49 Agenda item 7.4 Authorisation of the Board of Directors to repurchase own shares Authorisation of the Board of Directors, until the next Annual General Meeting, to allow the Company to repurchase own shares of up to 10% of the share capital, subject to a holding limit of 10% of the share capital. The repurchase must take place at a price equal to the share price quoted at the time of the repurchase with a deviation of up to 10%.

50 Slide 50 Agenda item a - Amendment of the Articles of Association; legal name change of NASDAQ OMX Copenhagen A/S

51 Slide 51 Agenda item b - Amendment of the Articles of Association; registration of the Executive Management

52 Slide 52 Agenda item c - Amendment of the Articles of Association; company announcements in English

53 Slide 53 Agenda item 7.6 Adoption of revised Remuneration Principles General amendments: The Remuneration Committee recommends remuneration (instead of the Chairmanship) Amendments for the Board: The Board chairman receives fee if also member of the Remuneration or Nomination Committee Multipliers for the Remuneration Committee increased Travel allowance to Danish based Board members and for Board committee meetings Amendments for executives: Abolishment of assessment of executive remuneration against specific Danish benchmarks Reflection of the remuneration package on international assignments Pension up to 25% (instead of 25-30%)

54 Slide 54 Agenda item 7.6 Adoption of revised Remuneration Principles

55 Slide 55 Agenda item 7.6 Dagsordenens punkt 7.6 Adoption of revised Remuneration Principles Godkendelse af reviderede aflønningsprincipper Votes (stemmer) % of cast votes (% af afgivne stemmer) For (For) 124,611,445, % Against (Imod) 1,177,862, % Blank (Blank) 169,715, %

56 Slide 56 Agenda item 8 Any other business

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58 Tom Koestler & Eivind Kolding Slide 58

59 Slide 59