finance in novo nordisk

Transcription

1 JONATHAN CHARLESWORTH Healthy body, positive mind Jonathan has type 1 diabetes The Apis bull logo is a registered trademark of Novo Nordisk A/S finance in novo nordisk

2 Table of contents 1 Introduction 3 Department descriptions 47 World map

3 Novo Nordisk Novo Nordisk is a healthcare company and a world leader in diabetes care, with sales of more than DKK 65 billion. The company has the broadest diabetes product portfolio in the industry, including advanced products within the area of insulin delivery systems. In addition, Novo Nordisk has a leading position within areas such as haemostasis management, growth hormone therapy and hormone replacement therapy. Novo Nordisk manufactures and markets pharmaceutical products and services that make a significant difference to patients, the medical profession and society. Headquartered in Denmark, Novo Nordisk employs approximately 32,000 employees in over 70 countries, and markets its products in more than 180 countries. Finance in Novo Nordisk The finance organisation in Novo Nordisk totals more than 900 employees of which approximately 400 work at headquarters and the remaining work in the affiliates around the world. Corporate Finance is responsible for the finance strategy of the organisation and for driving the corporate processes, while the local finance units are responsible for managing the financial processes in local operations. Finance in Novo Nordisk focuses on driving the long-term financial targets of the company, including growth, profitability, financial return and generation of cash, while at the same time ensuring commitment to the Triple Bottom Line. The Finance Graduate Programme The Graduate Programme is a unique opportunity to start your career on a steep learning curve and the programme includes both professional and personal development. From the beginning, you will be assigned a personal mentor who will guide your career and support your development throughout the programme. Through a number of job rotations, you will be exposed to various types of tasks, gain international experience and start building a strong network. In each rotation, you will take up a full-time position and learn all relevant finance skills. Additionally, you will spend 30 80% of your time on key change projects. No matter where in the organisation you find yourself, you will be among passionate colleagues who share the Novo Nordisk values and work ethics with respect for society. A number of different Graduate Programmes exist in the finance organisation. No matter which programme you choose, you will have a wide range of international opportunities within the finance organisation. abroad during your career. Our most recent graduates have been on rotations in countries such as Brazil, China, India, Japan, USA and the UK. If you join our European Finance Graduate Programme, you will start your programme at the European regional headquarters in Zurich, have 1 rotation in Zurich, 1 rotation at the corporate headquarters in Denmark and 1 rotation in a large sales affiliate in Europe. When completing the programme, you will typically get your first permanent position in the European finance organisation. Other career opportunities Finance in Novo Nordisk is always looking for highly skilled employees who are open-minded and not afraid to challenge themselves and those around them, and all departments in the finance organisation frequently have open positions. Open positions are posted on the corporate web site or on local affiliate career sites. If you join the Corporate Finance Graduate Programme you will start in the corporate headquarters in Denmark, have 3 rotations in Denmark and 1 rotation outside Denmark and upon completing the programme, you will typically get your first permanent position in Denmark. Since Novo Nordisk is a global company there will of course always be plenty of opportunities to work In this pamphlet you can read more about the departments working with finance in Novo Nordisk. Their key tasks and processes are described, combined with the types of tasks and responsibilities a new employee could be exposed to and what competencies will be developed. 1 2

4 Business Assurance Management Support Safeguarding Novo Nordisk values and license to operate by driving integrated, efficient and value adding assurance Business Assurance delivers two kinds of services: Required Assurance the recurring assurance tasks to ensure compliance with external and internal requirements within the Novo Nordisk Way, organisational audit, business ethics and financial or IT processes. The key customers for these services are the Board of Directors, the Audit Committee and Executive Management. Beyond Required Assurance are the services requested by senior management or developed by Business Assurance to utilise internal competencies to the benefit of our stakeholders Management Support s role is to ensure efficient and effective processes and drive initiatives to continuously update and improve procedures and systems. In this way, management support enables facilitators and auditors to reach their business targets and helps to communicate the results to relevant stakeholders in the organisation Participate in the development of Business Assurance s strategy, Balanced Scorecard and budget Drive and participate in strategic projects Drive cross-functional processes e.g. monthly management reporting Facilitate management meetings, prepare presentations and follow-up on actions Execute ad hoc tasks Organisational overview Ability to structure and execute tasks Efficient stakeholder management by communicating to various stakeholders at different organisational levels Deep insight into Novo Nordisk systems and processes through participating in audits and facilitations 3 4

5 Cash Management & Banking Services We contribute to competitive business performance by providing group cash management and banking services solutions, as well as regional capital structure and financial resources solutions, while being a team-oriented and attractive place to work Cash Management & Banking Services is a part of Corporate Treasury and is, as business partner to the global Novo Nordisk organisation, responsible for providing efficient banking services and ensuring necessary liquidity, funding and capital to Novo Nordisk s affiliates As a business partner, we collaborate closely with many areas of Novo Nordisk globally and with banks on a global scale in solving a variety of financial issues Handle bank strategies and bank relationships as well as optimise global cash management structures Make capital structure decisions in affiliates, including funding of various investment projects on a global scale Repatriation of cash back to Novo Nordisk A/S Handle credit and payment risks within the Novo Nordisk group, including trade finance, credit insurance, guarantees, payment terms, ROIC improvements etc. Development of the Novo Nordisk in-house bank Various ad-hoc financial tasks and analysis Solid understanding of Corporate Treasury, including the link between Corporate Treasury and line of business Strong business understanding through tight collaboration with other Novo Nordisk units, also outside the finance area An extensive network within the global Novo Nordisk organisation and with external financial partners Deeper insight into the financial environment and the world of banking 5 6

6 Corporate Accounting Securing global compliance Corporate Accounting is responsible for the accounting infrastructure and for ensuring global accounting compliance Corporate Accounting consolidates the Novo Nordisk Group s accounting figures on a monthly, quarterly and yearly basis and performs the closing processes We also provide production cost and inventory valuation services for the Novo Nordisk Group Based on the consolidations, Corporate Accounting prepares the annual report and quarterly company announcements and thus takes care of the external reporting in line with IFRS In addition, Corporate Accounting is a global business partner and provides the Novo Nordisk accounting manual, accounting memos and advice Participating in consolidating figures and calculating different cost and inventory indicators Contributing to the Novo Nordisk annual report and other reports and announcements directed to external stakeholders Thorough understanding of the Novo Nordisk Group s accounting processes and complex accounting issues closely linked to current business developments related to new investments, partnerships and other special events Improvement of quantitative and IT skills Communicating effectively throughout the organisation 7 8

7 Corporate Controlling and Strategic Finance Be corporate business partner to the CFO by mitigating financial risks to ensure no surprises in corporate financial performance Corporate Controlling and Strategic Finance is responsible for the financial processes in Novo Nordisk including monthly and quarterly reporting to the Board of Directors and Executive Management as well as the corporate budget, balance scorecard processes and preparing the long-term financial outlook Priority number one is to support the CFO in ensuring sound financial management of the Group Pro-active follow up on the Group s financial performance, flagging of unwanted cost developments in due time and supporting the organisation in case of financial challenges Contribute to key financial processes such as monthly management reporting, rolling estimates and presentations to Executive Management and Board of Directors Drive and participate in different projects, including ad hoc support for management Help ensure that new knowledge and theories are brought into Novo Nordisk as well as help further develop a fun and rewarding workplace An overview of the entire Novo Nordisk organisation and all financial processes Strong insight into the current and future strategic priorities of the company as well as business challenges Learning what it requires to operate a multinational company in terms of financial structures and processes and how to be a valuable business partner in ensuring high quality analysis and challenges to the reported input 9 10

8 Corporate Sourcing Corporate Sourcing s vision is to be the preferred global sourcing partner Maximising value and enabling effective decision-making by: Securing favourable terms and spend optimisation Increasing data accuracy and transparency Driving establishment and anchoring of category strategies Managing and develop our supplier relationships Continuously developing our understanding of the businesses and needs of our customers Further, we drive transparent processes and providing guidance and support by: Managing and optimising indirect sourcing processes Securing clear roles and responsibilities Ensuring simple point of entry to line of business Linking the sourcing and procurement units closer together by sharing knowledge and best practices Prioritising both sourcing activities and improvement projects Participate in sourcing activities, e.g. negotiations and category strategies Analyse customer needs and market possibilities Drive and participate in sourcing projects Project and stakeholder management skills Negotiation skills obtained through training sessions, vendor meetings and contract settlements Business understanding of the areas in your span of responsibility Learning how to be a valuable sourcing partner to line of business globally Obtaining a global mindset through a global field of working 11 12

9 Corporate Strategy Corporate Strategy s ambition is to provide strategic direction for Novo Nordisk on how to grow our business in the best way possible Corporate Strategy is part of Corporate Development and is responsible for driving the 10-year business goals and how we will grow our business in line with the Novo Nordisk Way. Each year this strategy is updated through the strategic planning process, and then provides direction for the Balanced Scorecard in the following calendar year Furthermore, we are responsible for planning and executing ad hoc strategy projects for Executive Management including merger and acquisition projects, sales and divestures and strategic collaborations. We also provide support to line of business on strategic matters Analyse, structure, coordinate and execute projects of significant importance to Novo Nordisk In connection with the strategic planning process or in ad hoc projects for Executive Management, take the lead on key work streams liaising with many parts of the organisation, whereby ensuring a holistic strategic solution to often multifaceted business problems Build close relationships with internal and external stakeholders to achieve optimal solutions and ensure anchoring of projects Broad business understanding and insight into strategic considerations regarding the Novo Nordisk portfolio Insight into the current and future Novo Nordisk product portfolio Communication, collaboration and stakeholder management skills obtained via continuous dialogue with colleagues across the organisation and geographies, together with investment banks and other external stakeholders Project skills 13 14

10 Corporate Tax Our mission is to provide Novo Nordisk with a competitive tax level in a responsible way Competitive tax level implies achieving a tax level at or below the peer group average Responsible way implies doing business in a way that meets expectations for a good corporate citizen. This means paying taxes where profits are earned in accordance with international transfer pricing rules. It means having a balanced tax risk profile and not engaging in tax avoidance activities Key tasks are direct/indirect strategy development, project implementation, financial reporting incl. tax/transfer pricing questionnaires, contract review, affiliate review, transfer pricing documentation and new legislation Corporate Tax works with tax compliance, indirect taxes and transfer pricing. You will be part of the dynamic global tax group and our key stakeholders are affiliates in all regions/business areas. You will get a chance to work with: The tax strategy The quarterly and annual reporting The transfer pricing review, documentation and reporting The APA (Advanced Pricing Agreement) projects The intercompany transactions and contracts Become a valuable partner to the finance organisation by providing high quality analysis Obtain unique insight in the Novo Nordisk legal structure and transactions between the business units Develop communication and stakeholder management skills 15 16

11 Finance Projects We will be the leading management support and project department in Novo Nordisk We will improve the performance of Novo Nordisk Finance substantially and drive the finance strategy by focusing on: Project execution: Drive all types of projects, deliver in-depth knowledge, exercise thought leadership and ensure high impact Project governance: Manage governance of projects and project resources and identify improvement opportunities Project competencies: Develop and provide tools and methods, conduct training, and facilitate knowledge sharing People development: Attract and develop highly skilled and engaged employees and act as a natural talent pool for management staff in Novo Nordisk Finance Participate as project associate in a project team and participate in the full value chain of a project. Tasks will be similar to starting in a management consultancy i.e.: Identify and structure problems, plan and prioritise work and collect data to analyse hypotheses (primarily using Excel) Build storyline and structure findings (primarily using PowerPoint). Present and discuss findings with relevant management Interview and challenge process owners to gain knowledge of relevant processes Superior project management methodology Strong communication skills Insight into the key processes the project(s) focus on 17 18

12 Financial Accounting & SAP Services Financial Accounting & SAP Services will drive global accounting and SAP value creation by ensuring that Novo Nordisk has the optimal accounting environment with unmatched levels of compliance and professionalism Our key tasks and processes can be divided into the following four categories and corresponding focus areas: SAP support & projects: Process optimisation, SAP experts and project implementation Novo Nordisk A/S: Royalty, month end closing and annual report for Novo Nordisk A/S Link transactions and reporting: Global expertise / process, IFRS expertise, accounting infrastructure, compliance by controlling and VAT Global: Segregation of duties, investments, accounts receivables, global guidelines and monthly management reporting Contribute to the key financial processes in Financial Accounting & SAP Services such as monthly and quarterly closing of the parent company and reporting to management Drive and participate in different ambitious local and global projects, including ad hoc support for management An overview of the parent company and the link between accounting practice, SAP and management reporting SAP competencies Insight into global accounting processes Insight into the transparent accounting structure of Novo Nordisk processes and systems Development of project and stakeholder management competencies 19 20

13 Financial Risk Management We contribute to competitive business performance by providing financial risk management, competitive cost of capital and sufficient financial resources for Novo Nordisk, while being a team-oriented and attractive place to work Financial Risk Management is a part of Corporate Treasury and is responsible for handling Novo Nordisk s financial risk at a group level. The department manages exchange rate risk, interest rate risk, financing and the capital structure of the company The processes include trading foreign exchange products and interest rate products. Furthermore, we analyse and provide inputs to management about developments in the financial markets and how these developments affect Novo Nordisk Be part of a team that: manages the exchange rate and interest rate exposure handles daily group liquidity management gives advice to other units in Novo Nordisk on matters relating to financial markets and Novo Nordisk s equity supports Novo Nordisk s capital structure, e.g. via the share repurchase programme is responsible for the controlling and reporting of our financial risk Strong understanding of the financial markets in general and how they impact the earnings of Novo Nordisk First-hand experience with the financial markets Insight into Novo Nordisk s capital structure Interaction with key internal stakeholders, e.g. the Senior Vice President of Corporate Finance and the CFO, and important external stakeholders like Novo Nordisk s international banks 21 22

14 Group Internal Audit Safeguarding the Novo Nordisk values and license to operate by driving integrated, efficient and value adding assurance Business Assurance delivers two types of services: Required Assurance the recurring assurance tasks to ensure compliance with external and internal requirements within the Novo Nordisk Way, organisational audit, business ethics and financial or IT processes. The key customers for these services are the Board of Directors, Audit Committee and Executive Management. Beyond Required Assurance are the services requested by senior management or developed by Business Assurance to utilise internal competencies to the benefit of our stakeholders All the assurance audits conducted involve preparation and collection of data, onsite visits including interviews and possibly additional data collection. They culminate with a written report and closing meeting. After the close, follow-up may also be involved Participate in audits of Novo Nordisk sales and marketing units across the world Participate in investigations of misconduct cases Drive/participate in projects across Business Assurance Conduct financial and contractual analyses Execute ad hoc tasks Organisational overview Ability to structure and execute tasks as a result of driving diverse projects Efficient stakeholder management Deep insight into Novo Nordisk systems and processes through conducting audits in various business units 23 24

15 New Product Planning New Product Planning is an executive staff function providing strategic recommendations on early stage assets and portfolios, as well as rational, cutting edge commercial assessments to support senior management decision-making New Product Planning provides commercial guidance and insight into the early portfolio of Novo Nordisk in close collaboration with R&D. New Product Planning is also a partner to the Chief Operating Officer and Development Portfolio Committee to whom we strive to deliver high quality proactive input to support strategic decisions regarding development projects. It is our ambition to ensure senior management decision making based on balanced and risk-adjusted assessments to secure the long-term outlook for the company The more formal processes include financial valuation of the development portfolio and commercial input to milestone 1 (M1) and milestone 3 (M3) decision points for development projects Support project and portfolio level decisions that maximise potential commercial value and ensure optimal prioritization between projects Contribute to the key project and portfolio assessments and financial analyses of investments in projects Drive and participate in different ambitious projects, including ad hoc support for management An overview of the full value chain of pharmaceutical development, working with R&D organisation and Global Marketing and support strategic decisions pertaining to the R&D portfolio Insight into the future product portfolio of the company Learning how to be a valuable partner to R&D and Global Marketing by providing proactive support and challenge based on high quality analyses Gain extensive experience with working in cross-functional teams 25 26

16 Operations Finance Business partnering with the world Operations Finance is first and foremost a business partner to the Operations organisation, which includes the sales, marketing and production organisation, to whom we strive to deliver high quality proactive support. Furthermore, it is our ambition to ensure transparent communication that enhances business and market understanding in headquarter and it is our responsibility to monitor and flag unwanted sales and cost developments in due time. As a business partner we are also present in several key management groups The more formal processes include detailed facilitation of budget and balance scorecard processes together with challenging reported figures, preparing statements and present conclusions Business partner for one area within Operations (sales, marketing or product supply), with the primary goal of being the area s expert on providing business support related to financial and ad hoc issues Contribute to the key financial processes such as monthly, quarterly reporting and annual budgeting Drive and participate in different ambition projects, including ad hoc support for management An overview of Operations and insight into the strategic considerations regarding sales, marketing and product supply Profound understanding of Novo Nordisk s line of business worldwide Competencies within financial planning and business partnering as well as obtaining a thorough understanding of your operational area 27 28

17 Launch Strategy & Planning Launch Strategy & Planning contributes to a world-class launch of next generation modern insulins by being the glue that connects management with affiliates; planning to execution The Launch team in Global Marketing is responsible for ensuring the commercial success of next generation modern insulins The unit is responsible for driving the strategic and operational planning of pre-launch/launch activities, carry out launch readiness reporting and deliver financial management for allocating market investments to subsidiaries The department is a cross-functional entity which coordinates the commercialisation project with senior management across headquarter functions and foreign subsidiaries Deliver key financial processes such as annual budgets and rolling estimates Develop monthly and quarterly reports to senior management Contribute to analytical projects such as the development of global key performance indicators, launch tracking, financial risk management, sales forecast challenge or business planning process Support with ad hoc management request Experience with the key steps of bringing a pharmaceutical drug to market and what it takes to secure a successful launch Insight into Global Marketing and key strategic processes Learning how strategy, marketing and finance coincides in a top pharmaceutical company End-to-end insight into the financial management of a launch project from budgets to follow-up and analysis tasks 29 30

18 Product Supply Finance It is the ambition of Product Supply Finance to support Product Supply in ensuring profitability by balancing short term performance and long term growth Besides working in Product Supply Finance in headquarter as described here, there is also an opportunity to experience the finance-related production challenges first-hand by working on-site at one of the various production facilities abroad. Product Supply Finance is the central finance function of Product Supply (PS). The organisation covers approx. 120 employees and has three main responsibilities in PS: Financial Controlling and Planning: Monitor and ensure action by setting targets and challenging progress during the monthly management reporting- and planning processes and the ad hoc analyses. Coordinate and assess major risks in PS and the link between PS expenditure and the overall cost of goods sold for Novo Nordisk Performance Management: Define strategic targets, Balanced Scorecards and follow-up on these. Create transparency by enabling high quality data and processes in our business intelligence systems and deliver high quality business analysis Product Costing: Responsible for all standard costing including master data and global average manufacturing costs. Responsible for accounting related to site inventories in Denmark and abroad and for controlling of price differences, production variances, inventory adjustments as well as provisions. Support decision-making by the SAP Controlling model across the global PS organisation Participate in and contribute to key costing, planning and management reporting processes Drive optimisation and projects as well as analyses and ad hoc support for management Challenge management reporting and planning from the different parts of the PS organisation Participate in the development of guidelines and training of the PS finance organisation An overview of the PS organisation and detailed knowledge of its business drivers as well as insight to the full supply chain of Novo Nordisk An understanding of good manufacturing practice and production insight Controlling, accounting, project management, business intelligence, business analysis and risk management as well as stakeholder management skills 31 32

19 R&D Finance It is R&D Finance s ambition to ensure cost-effective use of resources in R&D within Novo Nordisk and be R&D s finance partner by creating value through and beyond recurring tasks R&D Finance is first and foremost a finance partner to the R&D organisation to whom we strive to deliver high quality proactive support. It is our ambition to ensure cost-effective use of R&D resources and it is our responsibility to monitor and flag unwanted cost developments in due time. As finance partner, we are also present in several key management groups The more formal processes include detailed facilitation of budget and balance scorecard processes together with challenging reported figures, preparing statements and present conclusions Facilitate monthly department meetings and monthly reports Contribute to the key financial processes such as monthly and annual budgets Drive and participate in different ambitious projects, including ad hoc support to management An overview of the R&D organisation and insight into project governance and strategic considerations regarding the R&D portfolio Insight into the current and future product portfolio Learning how to be a valuable finance partner by providing your counterpart with proactive support through ensuring high quality analyses and challenging reported budget input 33 34

20 Risk Office Efficient Enterprise Risk Management How to avoid the Black Swans The Risk Office s primary responsibility is to support the organisation in fulfilment of their Enterprise Risk Management (ERM) roles. This includes implementing and maintaining a global ERM process covering all aspects of the value chain, supporting the business where necessary by facilitating workshops and training in regional and functional business areas The Risk Office is the secretariat of the Risk Management Board (RMB), which is chaired by the CFO. For the RMB, Risk Office performs quarterly risk reporting which entails reviewing and challenging global risk reports from all parts of the business. The Top10 and Top25 consolidated risk profiles for the entire company are delivered and presented to the RMB and subsequently the Board of Directors and the Audit Committee. This work is carried out in a close collaboration with a network of about 30 dedicated risk coordinators representing the entire global organisation Manage and coordinate projects related to developing the ERM system Dive into specific risks through focus reports to obtain a more comprehensive insight of specific areas of the business Train the network of risk coordinators through workshops, annual network days and virtual sessions Review and challenge risk reports from regions/areas during quarterly risk reporting Provide ongoing support for the director, e.g. preparing presentations and memos Broad business understanding of value chain and market insight achieved by working with top risks across all business areas and regions Project and stakeholder management skills Communication skills obtained through training sessions, presentations, workshops and continuous dialogue with risk coordinators from all over the world 35 36

21 Sarbox Consulting We ensure a strong control environment that prevents significant accounting mistakes and fraud The number one priority in Sarbox Consulting is to secure efficient Sarbanes Oxley compliance in relation to internal controls over financial reporting. This is done by ensuring global presence in the finance organisation and by continually maintaining the Sarbanes Oxley awareness. Changes to IT systems and manual processes often compose a significant risk to Sarbanes Oxley compliance, which is why these changes are monitored proactively Sarbox Consulting also utilises knowledge from the internal controls over financial reporting (Sarbanes Oxley) to implement and drive other compliance and best practice programmes. This includes best practice over internal controls and non-financial reporting in order to leverage experience from the Sarbanes Oxley implementation and in order to ensure transparency in the financial processes Responsible for Sarbanes Oxley areas in headquarter and affiliates including business trips to the US, Japan, China, Germany, France and UK. Investigation and description of incidents that could lead to non-compliance with Sarbanes Oxley Provide support to line of business regarding interaction with Group Internal Audit and external auditors in relation to issues identified in audits Responsible for non-financial reporting areas in headquarter and affiliates Understanding of how Novo Nordisk complies with Sarbanes Oxley and how the top-down-risk-based approach used in relation to our internal controls over financial reporting (Sarbanes Oxley compliance) can be used on many other projects Broad business understanding of how processes, manual controls and IT application controls are performed across the finance organisation of Novo Nordisk Stakeholder management skills through interaction with line of business, IT and Corporate Development, Group Internal Audit and external auditors 37 38

22 Staffs Finance It is Staffs Finance s ambition to drive financial decisionmaking in the staffs areas by creating transparency and ensuring financial knowledge through engaging with our customers and identifying solutions for their needs Staffs Finance is finance partner to the staffs areas (Corporate Relations, Finance, Legal, IT and Corporate Development) We each represent one or more areas within the staffs areas and are represented at senior management team meetings where we support the areas on financial matters The key processes we facilitate are budgeting, monthly follow up on budgets and the Balanced Scorecard process In addition to the standard processes a great deal of our time is spent providing support to the organisation on various ad hoc matters A new employee in Staffs Finance will take over one or more Corporate- or Senior Vice President areas where the employee will be the key contact for the area(s) with regards to financial matters The employee will be part of the management team meetings and will be responsible for running the standard processes in his or her area(s) Learning how to engage with colleagues at many different levels in the organisation Practising being a valuable finance partner by providing your customer with proactive support Gaining thorough knowledge of the areas you work with which will help you increase your non-financial business understanding 39 40

23 Regional Finance The Regional Finance units are the finance functions of the Regions which are responsible for consolidating and analysing financial input from their Business Areas. Thereby Regional Finance serves as the link between corporate headquarters and line of business and provides input for strategic decision-making In Novo Nordisk the sales organisation is divided into Regions, Business Areas and Affiliates. There are 5 Regions covering more than 10 Business Areas which again consist of over 40 Affiliates. This description will serve as an example of a Regional Finance unit. Ensure that regional financial and performance related targets are met through cost effective use of resources Serve as finance partner for local line of business and management in terms of providing high quality reporting and proactive support Tax and treasury management in cooperation with headquarters, and by engagement with local authorities Accounting processes and compliance with local and global financial standards People development in order to attract and develop highly skilled employees that will excel in the Novo Nordisk Finance organisation Take up responsibility for one or more core controlling tasks, such as monthly management reports, sales forecasting and analysis of divisional cost Contribute to the regional financial budgeting processes by challenging budget input and preparing financial overviews Engaging with management to become part of the decision making process Drive and participate in different regional change projects, including ad hoc support for management Learning how to be a valuable finance partner to line of business Broad competencies in several aspects of financial management Strong ability to communicate with stakeholders Insight into the dynamics and drivers of several local markets and healthcare systems Solid understanding of marketing and sales, including which factors drive sales and how marketing activities are conducted and impact sales 41 42

24 Business Area Finance The main responsibility of the Business Area Finance units is to support the link between local Affiliates and Regional offices. The Business Area Finance units consolidate and analyse financial input from Affiliates which is reported to the Regional offices In Novo Nordisk the sales organisation is divided into Regions, Business Areas and Affiliates. There are 5 Regions covering more than 10 Business Areas which again consist of over 40 Affiliates. This description will serve as an example of a Business Area Finance unit. Business Areas are coordinating activities in a number of Affiliates linked together by their geographical location. The finance role in a Business Area is different from the Affiliates, but still very close to the markets. Business Area Finance focuses on the consolidation and challenge of financial data from the Affiliates within the Business Area With its intermediary role between Regions and Affiliates, the Business Area is a key player in coordinating the activities across Affiliates and securing the roll out of financial regulations and changes from headquarters or the Region Business Areas serve as the contact for the Affiliates finance units as well as having its own local finance function : Controlling and follow-up on sales and costs in Affiliates as well as on Business Area level Develop and drive projects and monthly reports Develop tools to facilitate management reporting Track the Balanced Scorecard for Affiliates and Business Area Contribute to key financial processes, e.g. rolling estimates and anchor budget In-depth understanding of the market conditions and challenges in several countries International communication and negotiation skills as the coordinating person among several Affiliates Deep insight into Novo Nordisk financial systems (e.g. SAP) and processes (e.g. anchor budget, rolling estimates, monthly management reporting, Balanced Scorecard, etc.) through daily finance operations 43 44

25 Affiliate Finance The Affiliate Finance units support day-to-day business in the Affiliates by analysing and evaluating developments in sales, costs and profits. Affiliate Finance thereby supports the daily interaction with the market and customers while also facilitating the linkage to the Business Area In Novo Nordisk the sales organisation is divided into Regions, Business Areas and Affiliates. There are 5 Regions covering more than 10 Business Areas which again consist of over 40 Affiliates. This description will serve as an example of an Affiliate Finance unit. The Affiliate Finance function includes finance, IT and logistics and is closely interlinked with other departments in the Affiliate Key processes of the Affiliate Finance area include all financial transactions such as accounts receivables and accounts payables as well as sales Responsibility for the distribution network covering both the supply from production sites and delivery to the customers Inventory management and securing a sufficient level of stock : Interaction with distributors and coordination with headquarters to manage inventory levels and supply chain 3rd party due diligence and contract management Cost management to ensure that cost and sales targets are met Participate and drive cross functional projects Updating and reconciliation of accounts Processing of expense reports and payment runs Supporting financial processes such as monthly management reports, anchor budget, rolling estimates and year-end closure In-depth understanding of local market and Novo Nordisk products System knowledge of SAP and SAP Business Warehouse Practical controlling experience Business understanding of sales, marketing and market access Efficient communication with various stakeholders including senior management Knowledge of country-specific distributional and financial setup 45 46

26 Novo Nordisk Organisation Region North America Region Europe Region International Operations Region Japan & Korea Region China 47 Headquarters and corporate hubs Research and development centres Production facilities Business Areas and Affiliates Representative offices 48