DIRF Klaus Bülow Davidsen, Head of IR DIRF: Financial guidance 6 December 2018 Financial guidance DIRF Klaus Bülow Davidsen, Head of IR

DIRF: Financial guidance 6 December 2018 Guidance benchmark For most companies, quarterly guidance is not necessary. Annual guidance is acceptable, especially when quarterly updates on these goals are provided. Earnings should not be the primary focus. Buy-siders ascribe as much importance to margins and revenues and even more to strategic and operational objectives. Operational guidance is far more often considered reliable than financial guidance. Ranges rather than precise goals are intuitively more prudent and acceptable to investors. Whatever guidance is shared must be first thoroughly vetted internally so the company is absolutely certain goals communicated are ones that will be achieved. Source: Rivel Associates, ‘A closer look at compliance’, April 2011

Novo Nordisk’s guidance statement from the IR policy DIRF: Financial guidance 6 December 2018 Novo Nordisk’s guidance statement from the IR policy

Novo Nordisk’s two types of financial guidance DIRF: Financial guidance 6 December 2018 Novo Nordisk’s two types of financial guidance Long-term financial targets Detailed financial guidance for the year in progress

Long-term financial guidance DIRF: Financial guidance 6 December 2018 Long-term financial guidance Four elements included: Current targets Operating profit growth 15% Operating margin 35% Return on invested capital 70% Cash to earnings (three year average) 90%

Detailed financial guidance for the year in progress DIRF: Financial guidance 6 December 2018 Detailed financial guidance for the year in progress Example from Q3 2011 reporting:

Impact of currency movements DIRF: Financial guidance 6 December 2018 Impact of currency movements Example from Q3 2011 reporting:

DIRF: Financial guidance 6 December 2018 Preliminary guidance for the subsequent year in connection with Q3 reporting Example from Q3 2011 reporting:

Guidance process Preliminary guidance for subsequent year DIRF: Financial guidance 6 December 2018 Guidance process Q3 report Preliminary guidance for subsequent year Q4 report Detailed guidance for remainder of the year Q1 report Q2 report Detailed guidance on remainder of the year