How Novo Nordisk Legal manage external counsel

1. How Novo NordiskLegal manage external counsel Presentation to Advokatsamfundet General Counsel, Ole F. Ramsby November 2014 Kristian Krag Nielsen & Alessia Ignazzi, Corporate Financial Planning – featured on the Global Finance Career site

2. Presentation to Advokatsamfundet Introduction • Ole F. Ramsby, SVP, General Counsel • Company Secretary • Directly responsible for Corporate Legal • Functional responsibility for Global Legal • Previously: Mærsk and FLSmidth • Joined Novo Nordisk as GC in 1997 • Global Legal 1997: 127 lawyers • Global Legal 2014: 125 lawyers

3. Presentation to Advokatsamfundet Novo Nordisk has an ambitious target to keep global legal and compliance spend below 0.5% of turnover In 2014 ~DKK 450m

4. Presentation to Advokatsamfundet The split between internal and external legal spend has been fairly constant for years ~DKK 450m Internal cost • ~90% salary and other compensation • Travel • Training • IT External cost • External counsel • Discovery vendors • Court fees 40% 60%

5. Presentation to Advokatsamfundet Internally, the Global Legal organisation consists of 125 lawyers and 74 non-lawyers Lawyers Non-lawyers Corporate BECO Corporate Legal North America Europe China Japan & Korea GL GSC Bangalore NNIT International Operations NNEPP International Operations International Operations

6. Presentation to Advokatsamfundet Externally, we have classified our advisors in three segments Setup Strategic • Aim: >80% of spend • Preferred suppliers • Global engagement letters • Supplier relationship manager • Partnership Approved • Aim: <20% of spend • 5-20 law firms per region • For use when no strategic firm can deliver Other • Aim: <10% of spend • Use only in geographies where no approved supplier is available

7. Presentation to Advokatsamfundet Externally, we have classified our advisors in three segments Setup Strategic law firms Strategic • Aim: >80% of spend • Preferred suppliers • Global engagement letters • Supplier relationship manager • Partnership Global: • Baker McKenzie • Clifford chance • DLA Piper • Davis Polk • Hyman Phelps • King Spalding • Morgan Lewis & Bockius • Reed Smith • Sidley Austin Brown & Wood • Sullivan & Cromwell • White and Case HQ: • GorrissenFederspiel Approved • Aim: <20% of spend • 5-20 law firms per region • For use when no strategic firm can deliver Other • Aim: <10% of spend • Use only in geographies where no approved supplier is available

8. 8 Presentation to Advokatsamfundet To ensure enhanced quality and cost competitive service, Novo Nordisk has been consolidating to even fewer firms NA EU IO J&K China Global Total HQ 211 Total number of law firms used in 2013 97 Number of approved law firms for 2015

9. Presentation to Advokatsamfundet Example: In the US, we have defined the firms to be used by practice area 9 Strategic Anti-Trust/Pricing Hyman Phelps King & Spalding Reed Smith Sidley Austin Arnold Porter Covington Burling Employment Morgan Lewis Reed Smith Drinker Biddle Hill Wallack Palmieri Eisenberg Litigation (General) DLA Piper King & Spalding Reed Smith Bowman Brooke Drinker Biddle Gibbons Patent/Trademark Hyman Phelps Sullivan & Cromwell Baker Botts Baker Hostetler Meagher Emanuel Pearl Cohen Regulatory/FDA Morgan Lewis Sidley Austin Arnold Porter Covington & Burling 16 Approved Compliance Hyman Phelps Morgan Lewis Reed Smith Sidley Austin Gibbons Fraud & Abuse Hyman Phelps King & Spalding Morgan Lewis Sidley Austin Arnold Porter Advice & Counsel DLA Piper Covington Burling Litigation(Products) DLA Piper King & Spalding Reed Smith Baker Sterchi Bowman Brooke Shook Hardy Privacy DLA Piper Sidley Austin Drinker Biddle Quarles & Brady Gov’t Affairs Hyman Phelps Alston Bird Quarles & Brady Ryan MacKinno* Corporate/SEC Davis Polk Morgan Lewis Real Estate Reed Smith Litigation(Patent) Sullivan & Cromwell White & Case Customs/Export Reed Smith Gov’t Investigations Sidley Austin *Patent use only **Gov’t Affairs use only ***Added in 2014 9

10. Presentation to Advokatsamfundet Global strategic suppliers: A mutually beneficial relationship Law Firm Benefits Novo Nordisk Benefits • Greater opportunities for business • Increased revenue potential • Ability to market to global affiliates • Ability to market expanded areas of practice • Fewer competitors • Develop stronger relationships • Deeper subject matter expertise • Minimize learning curve costs • Greater leverage for competitive rates and discounts • Ability to reduce frequency and size of rate increases • Ensure greater accountability • Supports future Novo Nordisk growth model

11. Presentation to Advokatsamfundet All steps in the process of working with external suppliers are supported by corporate initiatives Detailed on the next slide Process for use of external suppliers • Request for Proposals • Negotiate price • Alternative fee arrangements • Evaluations • On-going dialogue with relationship partners • Statement of work • Serengeti

12. Presentation to Advokatsamfundet Work with law firms are controlled through a statement-of-work model Key principles Statement-of-work Details deliverables, scope and capped fee No work may be commenced without a SoW Total amount invoiced cannot exceed the cap

13. Presentation to Advokatsamfundet Work with law firms are controlled through a statement-of-work model Key principles Statement-of-work Details deliverables, scope and capped fee No work may be commenced without a SoW Total amount invoiced cannot exceed the cap

14. Presentation to Advokatsamfundet Outcome • Novo Nordisk only works with world class law firms • We have high transparency and predictability of our legal spend • We enforce strict cost control • This ultimately leads to both improved quality and cost savings • Legal services should be highly value adding (and not commodity based)