Investor Presentation Full Year 2017 slide image

Investor Presentation Full Year 2017

Investor Presentation Full year 2017 Slide 36 Key assumptions supporting the long-term financial target of an average of 5% operating profit growth¹ Expected future sales drivers • Insulin • GLP-1 . Continued underlying 3-4% volume growth of the global insulin market Market share gains and value upgrades driven by the new-generation franchise Continued expansion of the GLP-1 market with underlying volume growth of >10% annually • Solid market leadership with Victoza® and OzempicⓇ GM S&D Obesity Continued expansion of the obesity market with SaxendaⓇ in the US R&D • Successful launches in new markets Biopharm Limited growth of the biopharm franchise mainly due to increased competition in the haemophilia space Admin • • Expected future cost drivers Expected to decline with approximately 1-3%- points over the next 3-4 years Lower realised prices and new product launches expected to negatively impact gross margin partly offset by product mix and manufacturing efficiency To be streamlined leading to savings of 1-2%- points over the next 3-4 years Expected to remain unchanged around 13%, but flexible should external opportunities arise • Refocused research efforts free up resources for investment in other serious chronic disease areas Continued focus on administration costs leading to savings and an administration cost to sales ratio approaching 3% Potential for bolt-on activity to support growth 1 New long term financial target established in connection with the Q3 2016 report. The target of 5% operating profit growth is an average for the period of 4-5 years, with 2015 as the base year. Note: Guidance provided at the Capital Markets Day, 21 November, 2017 GM: Gross margin; S&D: Sales and distribution cost novo nordisk
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