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Introducing Novo Nordisk / Strategic Aspirations / Corporate governance / Consolidated statements / Additional informationNovo Nordisk Annual Repor t 2020 / 6We now also ask that by the end of the decade,progress with our ambition to secure sustainedour direct suppliers use only renewable powergrowth within our Biopharm division thanks towhen supplying us. It has been great to see somestrong demand for our growth hormone and newof our largest suppliers step up and meet thishaemophilia products.target already.I believe that our ability to meet the needs of ourDespite this encouraging progress, we canmillions of patients during the pandemic in 2020only fulfil our purpose and be respected forcomes as a consequence of our crystal-clearadding value to society if we deliver on our corepurpose and long-established company values. Wecontribution of scientific innovation. Thanks toare far from done and have many more millionsa strategy of targeted investment, our scientistsof patients for whom treatment is not accessibleare currently pursuing higher levels of innovationacross more therapy areas than at any point inthe company’s history. Consequently, I believe wetoday. So now is the time to continue to invest inOlivia Aka is living with type 1 diabetesand is enrolled in our Changing Diabetes in Children programme, Ivory Coastour people and in our organisation, creating aninclusive, diverse and safe working environmentin which colleagues have equal opportunities toare now well-positioned for success in the short,medium and long term.Our continued focus on external innovationWithin diabetes, we are further raising the in-led to the significant acquisitions of Corvidianovation bar with the roll-out of the world’s firstTherapeutics and Emisphere Technologies,once-daily GLP-1 tablet, Rybelsus , while at thestrengthening our positions in cutting-edge areassame time working on novel insulins, 100 yearsof cardiovascular medicine and drug deliveryafter the discovery of the molecule. Our Researchrespectively.& Development (R&D) colleagues are also pursuing greater weight loss in obesity, and in 2020 theyCommercially, 2020 was a challenging year asdemonstrated the potential of semaglutide 2.4 mglockdowns reduced the time doctors spent within the STEP phase 3 clinical trial programme.their patients, leading to fewer initiations ofnew treatments. Despite this, we expanded our“Over the past year we havestepped up our commitmentto our purpose by launchinga new Defeat Diabetes socialresponsibility strategy. Thissets out our ambition toaccelerate the preventionof type 2 diabetes, provideaccess to affordable care forvulnerable patients in everycountry and innovate toimprove lives."thrive and fulfil their potential.Looking to the future, I am confident that our clearcorporate strategy will make us a valued partner tosociety as the world continues on the long road torecovery from the pandemic.In closing, I would like to thank my colleaguesaround the world for their agility and commitmentduring this most challenging of years. Special thanksmust go to our partners and collaborators, withoutwhom we could not succeed. A sincere thank yougoes to our Board of Directors for their continuedCrucially, we also broadened our technologyleadership position in the diabetes market in termsplatforms and expanded our research intoof value, keeping us on track to reach a shareadjacent disease areas in 2020 includingof more than one third by 2025. Diabetes salescardiovascular disease, non-alcoholicwere driven by sales of GLP-1 products (Victoza ,steatohepatitis (NASH) and Alzheimer’s diseaseOzempic and Rybelsus ), which offset mixed– areas of huge unmet medical need and a greatmarket conditions for insulins. We continued toLars Fruergaard Jørgensenburden for patients, families and society alike.help more people living with obesity, while makingPresident & Chief Executive Officersupport and constructive challenging of the organisation. Finally, I would like to send a thank you to our shareholders for their continuous support.

Introducing Novo Nordisk / Strategic Aspirations / Corporate governance / Consolidated statements / Additional informationNovo Nordiskat a glanceNovo Nordisk Annual Repor t 2020 / 7Our corporate strategyOur corporate strategy has four distinct focusWe aim to strengthen our leadership andareas in which we operate. It is built on ourtreatment options in Diabetes and Obesity care,purpose, the Novo Nordisk Way and our ambitionsecure leading positions within Biopharm andto be a sustainable business.establish a strong presence in other seriousNovo Nordisk is a global healthcare company,chronic diseases such as NASH, cardiovascular dis-headquartered in Denmark. Our key contribu-ease and Alzheimer’s disease. Succeeding in thistion is to discover and develop innovative bio-will drive sustainable growth for Novo Nordisk.logical medicines and make them accessibleto patients throughout the world. We aim tolead in all disease areas in which we are active.Diabetes careDKK million in net sales54,126Strengthen leadershipby offering innovativemedicines and drivingpatient outcomesDKK million in operating profit28,565DKK million in free cash flow45,323employees worldwide169BiopharmSecure a leading positionby leveraging full portfolioand expanding intoadjacent areasNovoNordisk WayDriving change todefeat diabetesand other seriouschronic diseasesSustasnes126,946Obesity carein a ble b usiStrengthen treatment o ptionsthrough market developmentand by offering innovativemedicines and drivingpatient outcomesOther seriouschronic diseases463million people live with diabetes1650million people live with obesity2450thousand people live withhaemophilia3Establish presence bybuilding competitive pipelineand scientific leadershipcountries with marketed products80countries with affiliates5countries with R&D facilities1. IDF Diabetes Atlas, 9th edition, 20192. WHO, Obesity and overweight, fact sheet, 20203. World Federation of Hemophilia, AnnualSurvey, 2018

Introducing Novo Nordisk / Strategic Aspirations / Corporate governance / Consolidated statements / Additional informationOur businessmodelNovo Nordisk Annual Repor t 2020 / 8Pioneering idea explorationand early research with a strongunderstanding of biologyResourcesResources going into our business model at differentstages:– I nsights from healthcareexperts, patients andOur business is built around our purpose:Driving change to defeat diabetes and otherpartnersserious chronic diseases. Our key contribution– E xpertise from public andis to discover and develop innovative biologicalEngineering and developingleading biologics withinchronic diseasesmedicines and make them accessible to patientsthroughout the world.private institutions– Diverse talent– R aw materials– Financial resourcesWe strive to be a sustainable business, creatingvalue to society and to our future business. Wedo business in a financially, environmentally andsocially responsible manner and we do this theNovo Nordisk Way. By succeeding in this, we willValuecreate long-term value to patients, employees,Value created from ourpartners, shareholders and society.business:Manufacturing biologicsat large scale, specificallywithin yeast– 3 2.8 million people usingour Diabetes care products– 4 3,500 patients participatingin our clinical trials– 4 5,323 employees, of whom5,446 were new hires in 2020– 60,000 direct suppliersDelivering high-volume productssuch as insulin and GLP-1, via anefficient supply chainExecuting commercially througha market-fit approach to ensurepatient access– 2 6,376 DKK million total taxcontribution– 3 6,976 DKK million to shareholders as dividendsand share repurchases

Introducing Novo Nordisk / Strategic Aspirations / Corporate governance / Consolidated statements / Additional informationPerformance highlightsStrategicAspirations 2025To reflect the broad aspects of NovoNordisk across therapy areas andgeographies, Novo Nordisk introduced in2019 a comprehensive approach describingthe future growth aspirations of thecompany under the headline StrategicAspirations 2025. The Strategic Aspirationsare objectives that Novo Nordisk intendsto work towards and are not a projectionof Novo Nordisk's financial outlook orexpected growth.Purpose and sustainabilityInnovation and therapeutic focus2025 Strategic Aspirations2020 highlights2025 Strategic Aspirations2020 highlights– B eing respected foradding value to society– Progress towards zeroenvironmental impact– Ensure distinct corecapabilities and evolvecultureAdding value to society:– Launch of new social responsibility strategy,Defeat Diabetes– Expansion of US affordability offerings– Societal contributions during COVID-19– Lowered ceiling price of human insulin in76 countriesEnvironment:– 100% renewable power across all productionsites– Launch of supplier target aiming at 100%renewable power by 2030Ensure distinct capabilities and evolve culture– Progress on diversity and inclusion agenda aswell as digitalisation capabilities– F urther raise theinnovation bar fordiabetes treatment– D evelop a leadingportfolio of superiortreatment solutions forobesity– S trengthen and progressthe Biopharm pipeline– E stablish presence inother serious chronicdiseases focusing oncardiovascular disease(CVD), NASH and chronickidney disease (CKD)Diabetes:– S emaglutide 2.0 mg phase 3b trialsuccessfully completed– O nce-weekly insulin icodec phase 3 trialprogramme initiated– R ybelsus approved in the EU, the UKand JapanObesity:– A pplications for semaglutide 2.4 mg submitted to FDA and EMA– A M833 semaglutide 2.4 mg phase 1 trialsuccessfully completedBiopharm:– M im8 phase 1/2 trial initiated– Concizumab phase 3 trial reinitiatedOther serious chronic disease:– S uccessful completion of phase 2 trials forziltivekimab and semaglutide in NASHCommercial execution1. CER: Constant Exchange Rate2. IO: International Operations3. NAO: North America OperationsNovo Nordisk Annual Repor t 2020 / 9Financials2025 Strategic Aspirations2020 highlights2025 Strategic Aspirations2020 highlights– S trengthen diabetesleadership – aim atglobal value marketshare of more than 1/3– Strengthen obesityleadership and double2019 reported sales– Secure a sustainedgrowth outlook forBiopharmDiabetes sales increased by 8% at CER1– Value market share leadership expanded by0.7 percentage points to 29.3%Obesity sales increased by 3% at CER toDKK 5.6 billionBiopharm sales increased by 1% at CER– D eliver solid sales andoperating profit growth:– D eliver 6–10% salesgrowth in IO2– T ransform 70% ofsales in the US (from2015 to 2022)– D rive operationalefficiencies across thevalue chain to enableinvestments in futuregrowth assets– D eliver free cash flow toenable attractive capitalallocation to shareholdersOperating profit increased by 7%at CER to DKK 54.1 billionSales increased by 7% at CER, toDKK 126.9 billion– 1 0% sales growth at CER in IO– 3 % sales growth at CER in NAO3, with 48% ofUS sales transformed to products launchedsince 2015Free cash flow of DKK 28.6 billion andDKK 37 billion returned to shareholders

Introducing Novo Nordisk / Strategic Aspirations / Corporate governance / Consolidated statements / Additional informationPerformance 1122,021126,946Sales growth as reported3.6%(0.1%)0.1%9.1%4.0%Sales growth in constant exchange rates 54,126(2.0%)1.1%(3.5%)11.1%3.1%DKK millionFinancialhighlights2019–2020Financial performanceChangeNet salesOperating profitOperating profit growth as reportedOperating profit growth in constant exchange rates (CER)1Depreciation, amortisation and impairment lossesNet financialsEMEARegion ChinaRest of World48%27%Sales by therapeutic areaObesity 8,13038,62838,95142,1388%Purchase of intangible assets1,1991,0222,7742,29916,256607%Purchase of property, plant and equipment27,0687,6269,6368,9325,825(35%)Free cash flow139,99132,58832,53634,45128,565(17%)Total 5,26949,81551,83957,59363,32510%Gross margin284.6%84.2%84.2%83.5%83.5%Sales and distribution costs in percentage of sales25.4%25.4%26.3%26.1%25.9%Research and development costs in percentage of sales13.0%12.5%13.2%11.7%12.2%Operating margin243.3%43.8%42.2%43.0%42.6%Net profit margin233.9%34.1%34.5%31.9%33.2%Cash to earnings1105.4%85.5%84.2%88.4%67.8%Operating profit after tax to net operating 50.5%50.0%211%2.8%3,92548,680Net profit14%4.8%3,1823%(634)Effective tax rate2North America0,2%3,1934%47,798Profit before income taxesSales by geographic areaDiabetes careNovo Nordisk Annual Repor t 2020 / 109%Financial ratiosDividend payout ratio2Share performance15%4%Basic earnings per share/ADR in DKK214.9915.4215.9616.4118.0510%Diluted earnings per share/ADR in DKK214.9615.3915.9316.3818.0110%Total number of shares (million), 31 .103Total dividend (DKK million)19,04819,20619,54719,65121,0663Share repurchases (DKK 38742710%Dividend per share in DKKClosing share price (DKK)81%(2%)9%7%1. See 'Non-IFRS financial measures' 2. See 'Financial definitions'. 3. Total dividend for the year including interim dividend of DKK 3.25 per share, corresponding to DKK 7,570 million, which was paid inAugust 2020. The remaining DKK 5.85 per share, corresponding to DKK 13,496 million, will be paid subject to approval at the Annual General Meeting.

Introducing Novo Nordisk / Strategic Aspirations — Purpose and sustainability / Corporate governance / Consolidated statements / Additional informationPurpose and sustainabilityAdding value to societyand to our futurebusinessSociallyresponsibleResponding to COVID-19During 2020, COVID-19 led to a cascade of criticalneeds around the world and we used our expertise, resources and global reach to contribute tothe response. Our highest priority was to ensureNovoNothe safety of our employees and the uninterruptedsupply of life-saving medicines for our patients. Inaddition, we focused our resources on donationstowards global relief efforts and activated our research and development organisation to performCOVID-19 testing following a request for supportfrom the Danish government.Leading a sustainable businessDemands on companies are changing fast as the world is faced withextraordinary challenges. Threats like the COVID-19 pandemic andclimate change mean that 'business as usual' is no longer an option.The stakes are high and we are determined to be a sustainablebusiness by adding value to society and to our future business.Novo Nordisk Annual Repor t 2020 / 11Our purpose is to drive change to defeatrdisk WayDriving change todefeat diabetesand other seriouschronic diseasesSustaina bl e b u iblediabetes and other serious chronic diseases.To maximise our positive impact, we must offersolutions beyond providing medicines to helptackle the global societal challenges of growthin non-communicable diseases, lack of access toaffordable care and the impacts of climate change.The rapid outbreak of COVID-19 during 2020 putthe potential vulnerability of people living withWe are committed to being a sustainable business.With that, we lead towards our StrategicPurpose anddiseases, including diabetes and obesity, firmly inTo us, this means that we add value to society andAspirations within purpose and sustainability.sustainabilitythe spotlight. At the same time, climate changeto our future business. To achieve this ambition,remains an urgent challenge. These challenges callwe do business in a financially, environmentallyThis is what ESG – Environmental, Social andfor corporations to step up and take a leading roleand socially responsible way, as reflected in ourGovernance – means to us.in delivering and adopting solutions.Articles of Association and the Novo Nordisk Way.2025 Strategic Aspirations– Being respected foradding value to societyThis approach is integrated into every aspect ofRead more about ESG in the following sectionsIn 2020 we addressed these challenges byour decision-making, in strategies and actions,and in the consolidated ESG statement.– Progress towards zeroenvironmental impactincreasing access to our medicines across thealways keeping in mind what is best in the longcapabilities and evolveworld, pursuing zero environmental impact, andterm for the patients we serve, our shareholders,culturetaking steps towards creating a more sustainableour employees, the communities in which we areand inclusive workplace.present and the global society we are part of. – Ensure distinct core

Introducing Novo Nordisk / Strategic Aspirations — Purpose and sustainability / Corporate governance / Consolidated statements / Additional informationPurpose and sustainabilityOurenvironmentalresponsibilityEach year, billions of Novo Nordisk tablets,vials and injection pens are distributed topatients and demand for them is growing.This puts us in the front line of someof the most challenging environmentalissues including climate change, waterand resource scarcity, pollution and plasticwaste. Our ambition is bold and simple: tohave zero environmental impact.To get there, we are adopting a circular mindset,suppliers to encourage them to shift to sustainablyOur environmental strategy,sourced materials, thus reducing our environmen-Circular for Zero and 2030tal impact. In 2020 we set an ambitious target thatambitionsall our direct suppliers should source 100% renewable power by 2030 when supplying us. To achievethis, we will work with our suppliers to help themin this transition to renewable power. Successfulconversion among our 60,000 suppliers wouldresult in around 300,000 tonnes of CO2 being elim-inated from our direct suppliers each year.Circular companyWe work to reduce our environmentalimpact across all areas of our operations andminimise consumption and eliminate waste, andworking with suppliers who share our ambition.We call our environmental strategy Circular forCircular supply:Proactive collaboration with suppliersto embed circular thinking for reducedenvironmental impact across the valuechain and move towards circularsourcing and procurementtransportation. In 2020, total CO2 emissions acrossHorns Rev 3 wind farm, North Sea, is one of the locations fromwhich we receive renewable powerDue to COVID-19, CO2 emissions from businessflights were reduced to 19,000 tonnes CO2,

Annual Report 2020 Team Novo Nordisk, the world's first all-diabetes professional cycling team, are racing with 100 on their jersey to celebrate the 100-year anniversary of the discovery of insulin . scientific innovation and sustainability - both of which are vital to ensure the future of the company . It is therefore satisfying to see a .