How Novo Nordisk Legal manage external counsel Presentation

How Novo Nordisk Legal 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

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 November 2014 2

Presentation to Advokatsamfundet November 2014 Novo Nordisk has an ambitious target to keep global legal and compliance spend below 0. 5% of turnover In 2014 ~DKK 450 m 3

Presentation to Advokatsamfundet November 2014 The split between internal and external legal spend has been fairly constant for years ~DKK 450 m Internal cost • ~90% salary and other compensation • Travel • Training • IT External cost • External counsel • Discovery vendors • Court fees 40% 60% 4

Presentation to Advokatsamfundet November 2014 Internally, the Global Legal organisation consists of 125 lawyers and 74 non-lawyers Lawyers Non lawyers North America Corporate Legal Europe Corporate BECO China Japan & Korea NNIT NNEPP GL GSC Bangalore International Operations 5

Presentation to Advokatsamfundet November 2014 Externally, we have classified our advisors in three segments Setup Strategic • • • 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 Aim: >80% of spend Preferred suppliers Global engagement letters Supplier relationship manager Partnership 6

Presentation to Advokatsamfundet November 2014 Externally, we have classified our advisors in three segments Setup Strategic • • • 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 Aim: >80% of spend Preferred suppliers Global engagement letters Supplier relationship manager Partnership Strategic law firms Global: • Baker Mc. Kenzie • 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: • Gorrissen Federspiel 7

Presentation to Advokatsamfundet November 2014 To ensure enhanced quality and cost competitive service, Novo Nordisk has been consolidating to even fewer firms HQ NA EU IO J&K China Global Total 211 Total number of law firms used in 2013 97 Number of approved law firms for 2015 8

Presentation to Advokatsamfundet November 2014 Example: In the US, we have defined the firms to be used by practice area 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 Compliance Hyman Phelps Morgan Lewis Reed Smith Sidley Austin Gibbons Fraud & Abuse Hyman Phelps King & Spalding Morgan Lewis Sidley Austin Arnold Porter Litigation (Products) Privacy DLA Piper Sidley Austin Drinker Biddle Quarles & Brady Advice & Counsel DLA Piper Covington Burling Litigation (Patent) Sullivan & Cromwell White & Case Real Estate Reed Smith Corporate/SEC Davis Polk Morgan Lewis Gov’t Affairs Hyman Phelps Alston Bird Quarles & Brady Ryan Mac. Kinno* Customs/Export Reed Smith Gov’t Investigations Sidley Austin DLA Piper King & Spalding Reed Smith Baker Sterchi Bowman Brooke Shook Hardy 9 Strategic 16 Approved 9

Presentation to Advokatsamfundet November 2014 Global strategic suppliers: A mutually beneficial relationship Law Firm Benefits • Greater opportunities for business • Increased revenue potential • Ability to market to global affiliates • Ability to market expanded areas of practice • Fewer competitors Novo Nordisk Benefits • 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 10

Presentation to Advokatsamfundet November 2014 All steps in the process of working with external suppliers are supported by corporate initiatives Process for use of external suppliers • Request for Proposals Screening for world class • Negotiate price • Alternative fee arrangements suppliers • Evaluations • On going dialogue with relationship partners Evaluate supplier performance Specify terms and deliverables • Statement of work • Serengeti Detailed on the next slide 11

Presentation to Advokatsamfundet November 2014 Work with law firms are controlled through a statement-of-work model Key principles 1) Details deliverables, scope and capped fee 2) No work may be commenced without a So. W 3) Total amount invoiced cannot exceed the cap Statement-of-work 12

Presentation to Advokatsamfundet November 2014 Work with law firms are controlled through a statement-of-work model Key principles 1) Details deliverables, scope and capped fee 2) No work may be commenced without a So. W 3) Total amount invoiced cannot exceed the cap Statement-of-work 13

Presentation to Advokatsamfundet November 2014 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) 14