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GETTING THE BE2T OUT 0F 1IFE 2CIENCE Annual Report 2012

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Contents 04 05 06 07 08 The Novo Group Novo A/S 2012 in brief Chr. Hansen Holding A/S Board of Directors 10 Management report 16 18 18 18 19 19 20 22 24 25 26 27 28 29 30 32 33 34 38 40 41 41 41 Novo Seeds Nurturing Nordic life science 2012 – a busy year for Novo Seeds Pre-seed grants outside Denmark Seed investments 2012 Novo Seeds portfolio 2012 Novo Seeds invests in medtech Novo Ventures A unique approach to venture investments Introducing the class of 2012 Biotech's role as an innovator for big pharma Exits and products brought to market in 2012 The portfolio in figures Active portfolio companies Portfolio company achievements in 2012 Apollo Endosurgery Karus Therapeutics Portfolio companies and selected exits Novo Growth Equity Growing out of Growth Equity Aerocrine AB Archimedes Pharma Ltd. Orexo AB 42 Novo Finance 44 Financial investments 46 47 48 49 The Novo Group The Novo Nordisk Foundation Novo Nordisk A/S Novozymes A/S 50 The team 52 Accounts, extracts 56 Corporate Social Responsibility

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N OVO AN N UA L R E P O RT 2 0 1 2 / THE NOVO G ROUP A ND NOVO A / S The Novo Group 100% ownership Share of capital 25.5% Share of votes 72.7% Share of capital 25.5% Share of votes 70.1% Novo A/S Seeds Ventures Growth Equity Financial investments 4

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Novo A/S Novo A/S is a Danish private limited liability company fully owned by the Novo Nordisk Foundation. It is the holding company of the Novo Group and, as such, the major shareholder in the publicly listed companies, Novo Nordisk A/S and Novozymes A/S. Novo A/S was established in 1999 prior to the demerger of Novo Nordisk, where Novozymes was established as a stand-alone, publicly listed company. Novo's objectives are to manage the Foundation's financial assets and to ensure the Foundation sufficient dividends to cover its grant obligations for scientific, social and humanitarian purposes and projects in Scandinavia and elsewhere. These objectives shall be attained through Novo's: • compliance with the rules and principles which are set out in the Articles of Association of the Novo Nordisk Foundation regarding exercise of the voting rights of A and B shares in Novo Nordisk and Novozymes, respectively; In 2012, Novo lived up to all of these objectives through: • voting at the annual general meetings of Novo Nordisk and Novozymes; • active involvement on the boards of Novo Nordisk and Novozymes by members of Novo's Board of Directors and management; • assurance that all companies in which the company has a material influence actively contribute to the development of the Novo Group and operate their business in accordance with the visions and values of the Novo Group; • pre-seed grants and seed investments in life sciences projects and companies together with the Novo Nordisk Foundation; • venture and growth equity investments • maintenance of a material influence on Novo Nordisk and Novozymes; and made with the objective of generating long-term profits; and • investment and financing business, including placing of capital in companies and real estate – in Denmark and abroad. • financial investments with returns on a current basis. 5

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NOVO AN NUA L R E P O RT 2 0 12 / 2012 I N B RI E F 2012 in brief Novo Nordisk A/S and Novozymes A/S Novo A/S is the majority shareholder in Novo Nordisk and Novozymes. Both companies achieved excellent financial results in 2012. Novo Nordisk increased its profit after tax by 25 %; and in Novozymes, the profit after tax increased by 10 %. The value of the shares in Novo Nordisk rose by 39 % and fell in Novozymes by 10 %. Seed investments To enable early investments in the life science area, the Novo Nordisk Foundation and Novo run a pre-seed and a seed programme. In 2012, four projects received grants from the pre-seed programme, and early-stage life science companies received DKK 31 million from the seed programme. Venture investments During 2012, Novo further consolidated its position as an active, international investor within life science ventures. This year, the Novo Ventures team invested in nine new companies, made follow-on investments in 21 of our existing portfolio companies, and successfully exited three companies. Our investments amounted to DKK 711 million, and exit proceeds were DKK 604 million. By the end of 2012, the market value of our venture portfolio was DKK 2 billion. Growth Equity investments In 2012, growth equity activities and investments focused on the consolidation and further support of the existing portfolio. We made follow-on investments in total of DKK 461 million in two companies. Financial investments In 2012, we further consolidated our global portfolio of financial investments. The main purpose of these investments is to spread Novo's financial risk and, at the same time, accumulate a substantial pool of financial resources. In 2012, our portfolio of financial investments yielded a return of 12 % and reached an accumulated value of DKK 18 billion. Development in assets (DKK billion) 2012 vs. 2011 180 170 160 150 140 130 120 110 100 90 80 70 60 50 40 30 20 10 2012 Financial investments at fair value Life science investments at fair value Shares in Chr. Hansen Holding A/S at fair value Shares in Novozymes A/S at fair value Shares in Novo Nordisk A/S at fair value 2011 6

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Chr. Hansen Holding A/S Chr. Hansen Holding A/S In 2012, Novo A/S acquired just over 25% of the shares in Chr. Hansen Holding A/S from Financière Star 1 S.A. At DKK 4.2 billion, the Chr. Hansen investment is by far the largest made by Novo to date. Chr. Hansen is a global bioscience company that develops natural ingredient solutions for the food, nutritional, pharmaceutical and agricultural industries. All solutions are based on strong research, development competencies and significant technological investments. The company enjoys market leadership in all its divisions: Cultures & Enzymes, Health & Nutrition and Natural Colours. We prefer to make our direct life science and bioindustrial investments where we can add most value as shareholders. Chr. Hansen is a well-run company and a good fit with our investment strategy. We are positive that this will prove an attractive investment for Novo, and we look forward to supporting Chr. Hansen as a long-term minority shareholder. A few facts on Chr. Hansen: • Founded in 1874 by the Danish pharmacist • Christian D. A. Hansen Headquartered in Denmark with development centres in Denmark, the US, France and Germany, and extraction and production plants on five continents 2,450 employees in 30 countries Turnover EUR 699 million Listed on NASDAQ OMX Søren Carlsen, Managing Partner in Novo A/S, was elected to the Board of Directors of Chr. Hansen Holding A/S at the annual general meeting in November 2012. • • • • For more information on Chr. Hansen Holding A/S, please visit www.chr-hansen.com Chr. Hansen: Frozen cultures 7

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NOVO AN NUA L R E P O RT 2 0 12 / B OA RD OF DI RE CTORS Board of Directors Ulf J. Johansson Chairman of the Board Ulf J. Johansson was born on 21 August 1945 and is a Swedish national. He holds an MSc in Electrical Engineering and a Doctor of Technology (Communication Theory) from the Royal Institute of Technology in Sweden. In 1990, he founded Europolitan Holdings AB, a Swedish GSM mobile telephone operator, which was publicly listed from 1994 to 2003. He resigned as Chairman of the Board of Europolitan Vodafone AB in 2005. Dr Johansson was a member of the Board of Directors of Novo Nordisk A/S from 1998 to 2005. In 2000, he joined the Board of Novo A/S, of which he has been Chairman since 2005. In 2005, he was also appointed Chairman of the Board of the Novo Nordisk Foundation. In 2005, Dr Johansson became a member of the Board of TelefonAB LM Ericsson. He is Chairman of the Board of Directors of Acando AB, Eurostep Group AB and Trimble Navigation Ltd. He served as Chairman of the Board of the Royal Institute of Technology in Stockholm from 1998 to 2003, and has been a member of the Swedish Academy of Engineering Sciences since 1990. In 2012, he became a member of the Governing Board of European Institute of Innovation and Technology (EIT). Jørgen Boe Board member Jørgen Boe was born on 24 March 1946 and is a Danish national. He holds a law degree and obtained right of audience before the Danish Supreme Court in 1976. Jørgen Boe has been a partner in the Danish law firm Kromann Reumert since 1977. From 1971 to 1989, he lectured in legal proceedings and commercial law at the University of Copenhagen and Copenhagen Business School (CBS). Jørgen Boe serves as Chairman of the Board of Directors of Axel Wirenfeldts Fond, Berger Plus Print Promotion A/S, Gudrun og Johannes Lehmanns Legat, Petax A/S and Totalkredit Pensionsreguleringsfond, and is Vice Chairman of the Board of the Novo Nordisk Foundation. Göran Ando Board member Göran A. Ando was born on 6 March 1949 and is a Swedish national. Dr Ando is a specialist in General Medicine and a Founding Fellow of the American College of Rheumatology in the US. Dr Ando is former Executive Vice President and President of Research & Development of Pharmacia Corporation, which was acquired by Pfizer Inc. in 2003. In April 2003, he was appointed CEO of the Celltech Group PLC in the UK until its acquisition in 2004 by UCB. Dr Ando is currently Chairman of the Board of Directors of Symphogen A/S and Vice Chairman of Novo Nordisk A/S. He is also a member of the Board of Directors of Molecular Partners and Archimedes Pharma. Dr Ando serves as a Senior Advisor to Essex Woodlands Health Ventures UK Ltd. He is also a member of the Scientific Advisory Board of Bausch + Lomb. In March 2013, Ulf J. Johansson resigned as Chairman from Novo's Board of Directors. Sten Scheibye was elected new Chairman, and Steen Riisgaard was elected new member of Novo's Board. 8

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Management Jeppe Christiansen Board member Jeppe Christiansen was born on 25 November 1959 and is a Danish national. He holds a MSc in Economics from the University of Copenhagen. Since 2004, Jeppe Christiansen has been CEO of Maj Invest A/S, of which he is also a co-founder. From 1986 to 1988, Jeppe Christiansen worked as an economist in Sparekassen SDS. He came to LD Pensions in 1988 where he became Head of Fund Management and later, as Executive Vice President, responsible for investments. From 1998 to 2004, Jeppe Christiansen worked as a Director in Danske Bank, responsible for international equity investments and corporate clients. Jeppe Christiansen is a member of the Board of Directors of Haldor Topsøe A/S, Kirkbi A/S and Symphogen A/S. Per Wold-Olsen Board member Per Wold-Olsen was born on 6 November 1947 and is a Norwegian national. He holds an MBA in Economics Administration as well as an MBA in Management and Marketing. Per Wold-Olsen joined Merck & Co. (MSD) in 1974. He became Managing Director of the Norwegian subsidiary in 1976 and Regional Director and Vice President of the Scandinavian region in 1986. In 1991, Per Wold-Olsen was appointed Senior Vice President for Worldwide Human Health Marketing of Merck & Co. Inc. in the US, and in 1994, he was appointed President of Human Health Europe of Merck & Co. Inc. In 1997, his region increased to include Eastern Europe, the Middle East and Africa, and Worldwide Human Health Marketing. In 2005, he was appointed President of the Human Health Intercontinental Region in Merck & Co. Inc. From 1994 to 2006, he was also a member of Merck's Management Committee. Per Wold-Olsen is Chairman of the Board of Directors of GN Store Nord A/S and serves on the Board of Directors of Exiqon A/S, Gilead Sciences Inc., Medicine for Malaria Venture and BioMalta. Henrik Gürtler CEO Henrik Gürtler was born on 11 August 1953 and is a Danish national. He holds a MSc in Chemical Engineering. In 1977, he joined Novo Industri A/S as an R&D chemist in the enzyme division. After a number of years in various positions within this area, Henrik Gürtler was appointed Corporate Vice President of HR Development in Novo Nordisk A/S in 1991, and became Corporate Vice President of Health Care Production in 1993. In 1996, he was appointed member of Corporate Management, and has served as CEO of Novo A/S since 2000. Henrik Gürtler is Chairman of the Board of Directors of Novozymes A/S, Copenhagen Airports A/S and COWI Holding A/S, and member of the Board of Directors of Novo Nordisk A/S. 9

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NOVO AN NUA L R E P O RT 2 0 12 / MA NAG E ME NT RE PORT MANAGEMENT REPORT Novo's Cornerstones In our interactions: Insight we strive to provide deep knowledge and innovative solutions. Commitment we strive to achieve groundbreaking and long-term results. Professionalism we act in a proper manner emphasising high integrity. Trust we emphasise building relationships based on mutual trust and respect. 10

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N OVO AN N UA L R E P O RT 2 0 1 2 / MA NAG E ME NT RE PORT Management report 2012 was another good year for Novo A/S. Both Novo Nordisk A/S and Novozymes A/S delivered excellent business results, as did Chr. Hansen Holding A/S in which Novo acquired just over 25% in 2012. Returns on the liquid financial investments comfortably exceeded benchmarks. These achievements allowed us to increase our commitment to the life science area. Novo invested in three new seed projects, and venture investments were made in nine new companies – seven in the US and two in Europe – and follow-on investments in 21 portfolio companies. Furthermore, growth equity follow-on investments were made in two companies. Thus, by the end of the year, the value of our life science investments totalled DKK 4.6 billion, further strengthening our position as an international seed, venture and growth equity investor. With regard to Novo's financial investments, the diversification of the assets continued through new investments, primarily in public shares and corporate bonds. The value of Novo's financial investments increased by 22 % to DKK 18.5 billion in 2012. The two companies in which Novo is the major shareholder, Novo Nordisk and Novozymes, experienced strong growth in both sales and earnings in 2012. Novo Nordisk's profit after tax increased by 25 %, and in Novozymes, the profit after tax increased by 10 %. In its financial year 2011/2012, Chr. Hansen's profit after tax increased by 11 %, and the share price increased by 49 %. 32 % increase in total assets By the end of the year, Novo's assets totalled DKK 174 billion, of which liquid and investment assets at fair value amounted to DKK 30 billion. In 2012, the value of Novo's shares in Novo Nordisk increased by 34 % to DKK 131 billion. We received dividends of DKK 2,071 million – an increase of 35 % compared to 2011. As part of Novo Nordisk's share buyback programme, we sold 5,100,000 B shares to Novo Nordisk, yielding DKK 4.2 billion. By the end of the year, we held 107,487,200 A shares and 35,312,800 B shares, equivalent to 25.5 % of the share capital and 72.7 % of the votes in Novo Nordisk. The value of Novo's shares in Novozymes decreased by 10 % in 2012. By the end of the year, the value of our holding in Novozymes amounted to DKK 13 billion. We received dividends of DKK 157 million – an increase of 18 % compared to the previous year. By 31 December 2012, we held 53,743,600 A shares and 29,131,400 B shares, equivalent to 25.5 % of the share capital and 70.1% of the votes in Novozymes. Investment process Novo carries out extensive due diligence in connection with investments in new companies. In addition to scientific and business-related issues, our due diligence inquiries establish whether the company operates according to values and principles that correspond to those of the Novo Group. A bioethical perspective helps to evaluate whether the companies – in connection with clinical trials and potential use of biological material – comply with ethical standards and international conventions. Assets DKK million B shares in Novo Nordisk A/S at market price A shares in Novo Nordisk A/S1) B shares in Novozymes A/S at market price A shares Novozymes A/S1) Shares in Chr. Hansen Holding A/S Other investment assets at market price Other net assets Total 2012 32.364 98.512 4.638 8.556 6.506 23.065 (22) 173.619 2011 26,672 70,942 5,156 9,513 19,277 (40) 131,520 Asset composition 2012 Novo Nordisk A/S at market price 75 % Novozymes A/S at market price 8 % Chr. Hansen Holding A/S 4 % Other investment assets 13 % 1) The A shares are non-negotiable; the value stated applies when the share price of the B shares is used. 12

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Seed investments Novo A/S runs a seed investment programme that supports early-stage life science projects in Scandinavia. In addition, Novo assists the Novo Nordisk Foundation in a pre-seed programme that aims to identify and support academic research with commercial potential. This programme provides managerial and strategic support to early-stage projects, and funding is given as grants in the same manner as other grants offered by the Novo Nordisk Foundation. The seed programme supports more advanced projects and operates on commercial terms. Support is given to projects and companies in exchange for ownership or other rights to the company or project in question. In 2012, the Novo Nordisk Foundation's pre-seed programme provided grants of DKK 10 million to four projects, and Novo's seed programme invested DKK 31 million in seven companies. Through these investments, Novo Seeds have contributed to the creation of jobs in Denmark. Venture investments In 2012, Novo continued its strong commitment to life science ventures by making new and follow-on investments, consolidating our position as a recognised, international investor within life science ventures. We invested DKK 711 million as venture capital, DKK 353 million in new companies, and DKK 358 million as follow-on investments in existing portfolio companies. We also sold three of our portfolio companies to pharmaceutical companies, and exit proceeds received in 2012 amounted to DKK 604 million. By the end of the year, the total book value of our venture investments reached DKK 2 billion. Growth Equity investments During 2012, Novo focused its activities on the existing portfolio, to which no new additions were made. The year's growth equity investments, totalling DKK 461 million, were made as follow-on investments in two portfolio companies to support them in reaching decisive milestones. By the end of 2012, the Board decided to redirect Novo's growth equity investments from early-stage commercial companies towards well-established, cash-flow positive companies with strongly positioned products and attractive long-term prospects. Chr. Hansen Holding A/S Chr. Hansen is a Danish bioscience company that develops natural ingredient solutions for the food, nutritional, pharmaceutical and agricultural industries. In the first quarter of 2012, Novo acquired just over 25% of Chr. Hansen for approximately DKK 4.2 billion. By the end of the year, the value of this investment had increased by 56 % to DKK 6.5 billion. Financial investments The aim of our financial investments is to diversify our entire investment portfolio, thereby spreading the risk and still achieving high returns. Since Novo is fully equity financed and our external obligations minimal, we are in a position to adopt a long-term investment perspective. Our investment rationale is primarily based on the assumption that, in the long term, shares give a higher return than bonds. After a cautious 2011, Novo's allocation to equities and corporate bonds increased in 2012, whereas the allocation to short Danish government and real estate bonds was reduced. In the years to come, the level of financial investments is expected to increase. In 2012, the liquid financial investments generated a return of DKK 1,958 million, equivalent to 11,7 % – which was 1,3 % better than the weighted benchmark. The total book value of the financial investments, including cash, reached DKK 18.5 billion by the end of the year. Financial results As for all other companies in the Novo Group, Novo's accounts are presented in accordance with International Financial Reporting Standards (IFRS). Life science investments DKK million Value of investments at the beginning of the year Investments during the year Disposals during the year at cost price Value adjustments Currency adjustments during the year 2012 4,149 1,577 (312) (853) 8 2011 3,308 (72) (426) 100 4,149 2010 2,247 (349) (30) 132 3,308 Value of investments at the end of the year Investment

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NOVO AN NUA L R E P O RT 2 0 12 / MA NAG E ME NT RE PORT Basic research Pre-seed projects Life science investments in Seeds, Ventures and larger companies Financial markets Research grants Pre-seed grants Life science investments / returns Financial investments / returns Dividend Dividend Cash flows in Novo A/S The funds flowing into Novo primarily originate from four sources: • As in previous years, the largest cash contribution originated from the sale of B shares in Novo Nordisk. In 2012, Novo Nordisk reduced its share capital following a share buy-back programme. As a result, Novo's ownership in the company increased above the targeted level of slightly over 25%. Consequently, and as a means of diversifying, the level was brought back to the original targeted level. In 2012, this resulted in proceeds of DKK 4.2 billion. • In 2012, Novo received dividends from Novo Nordisk and Novozymes of DKK 2,228 million, equivalent to a DKK 565 million increase from 2011. • Exits from venture investments yielded DKK 604 million in 2012, compared to DKK 592 million in 2011. • Return on financial investments amounted to DKK 2,035 million in 2012, compared to DKK 31 million in 2011. In addition to operating costs, Novo had three main categories of cash outflows and investments in 2012. They were: • the investments in Seeds (DKK 31 million), in Ventures (DKK 711 million) and in Growth Equity (DKK 461 million) • the investment in Chr. Hansen (DKK 4.2 billion) • the increase in net financial investments (DKK 3.4 billion) Governance in the Novo Group Novo's role in the Novo Group is enacted through representation on the boards of the two publicly listed companies, Novo Nordisk and Novozymes. At their annual general meetings in 2012, three board positions in Novo Nordisk and two in Novozymes were filled by individuals who were either members of Novo's management, its Board of Directors, or members of the Board of Directors of the Novo Nordisk Foundation. Corporate Social Responsibility in Novo CSR is an integral part of Novo's value-based governance framework. This framework provides the direction for the company and its employees as well as guidance in good business conduct. Please turn to pages 56 – 57 to see the full 2012 CSR report. Knowledge resources Novo depends on highly specialised knowledge. For this reason, the professional competences of our employees are of great strategic importance. We focus on continuing education to allow the individual employee to increase his or her value to Novo and the labour market in general. To ensure the best combination of competences to serve the large number and complexity of Novo's portfolio companies, our life science teams include people whose professional experience has been gained inside as well as outside the Novo Group – in the healthcare sector, the biotech industry or in other international companies. In addition to the Board of Directors, Novo has formed an advisory group of external life science professionals who meet on a regular basis to provide Novo with feedback and advice on life science investment projects. In finance and administration, our employees have specialist knowledge within all the asset classes relevant to investment management, and relevant qualifications in accounting, auditing, taxation, legal affairs, HR and IT. 14

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Focusing on the way we work and following up on improvement measures are important items on the management agenda in Novo. We wish to cultivate a positive and inspiring work environment with respect for health and safety. Regular evaluation of methods and effects ensure that we continuously improve the way we work. Business and financial risks The highest risks to which Novo is exposed are related to the business risks of the two operating companies, Novo Nordisk and Novozymes. The business risks vary in the two subsidiaries as a consequence of their different activities. Novo Nordisk's performance is subject to a number of risks relating to activities throughout its value chain. Developing and bringing new treatments to market involve regulatory and production risks. Product safety is directly linked to patient well-being, which means that safety and product quality are of paramount concern from both a financial and reputational perspective. While the gross risk is very high, with product safety having the potential to adversely affect operations, Novo Nordisk believes that vigorous efforts to manage and mitigate this risk effectively reduce the company's net risk profile. Other risks include pricing and reimbursement reforms, competition from new products or biosimilar medicines, supply disruption, financial risks, business ethics and legal risks. Novozymes' revenue in certain product areas is concentrated on a relatively small number of customers, which means that Novozymes is affected by trends in these customers' markets. Most of Novozymes' production involves the use of genetically modified organisms. For this reason, acceptance of industrial use of this technology is of great importance. In both companies, currency is a considerable risk factor due to their extensive global operations. Both subsidiaries protect themselves against currency fluctuations through hedging, particularly with respect to the US dollar and the Japanese yen. For more information on Novo Nordisk and Novozymes and their approach to risk management, please see the articles on pages 48 – 49 or consult the companies' Annual Reports 2012. Chr. Hansen has established a clinical study programme to further improve the documentation of health claims for their probiotic products. Pending the results of these studies, Chr. Hansen will evaluate whether to file for approval of health claims with the European Food Safety Authority (EFSA). Other risks for the company relate to issues such as product safety, attracting highly skilled employees, health and safety, tax and transfer pricing, and legal risks. For more information, please consult Chr. Hansen’s latest Annual Report. Finally, Novo also incurs financial risks in connection with investments in life science companies and in financial assets. The future Novo's financial prospects are highly dependent on the results of Novo Nordisk and Novozymes. For further information on the outlook for 2013 for the two companies, please consult their respective Annual Reports 2012. Furthermore, the financial results of Chr. Hansen will also play a role for Novo's future results. The value of Novo's venture investments is significantly influenced by changes in the US dollar exchange rate since two thirds of our investments are made in US dollar. Although the financial crisis and health care reforms are putting pressure on the biotech industry, we believe that the underlying long-term trends are positive. Encouraging developments in the venture portfolio combined with a number of strong exits in the last three years provide the basis for our continued optimism. In 2013, Novo plans to invest approximately DKK 800 million in venture companies and significant amounts in larger life science investments. Together with the Novo Nordisk Foundation, we will allocate up to DKK 115 million to investments through the pre-seed and seed programmes. Finally, we plan to continue to grow our portfolio of financial investments. At their ann

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NOVO AN NUA L R E P O RT 2 0 12 / NOVO SE E D S NOVO SEEDS NOuRiShiNG ExcEllENcE iN EARly-STAGE lifE SciENcE

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NOVO AN NUA L R E P O RT 2 0 12 / NOVO SE E D S Nurturing Nordic life science Launched in 2007 by the Novo Nordisk Foundation and Novo A/S, Novo Seeds invests in early-stage life science research. We contribute to a dynamic Nordic life science investment environment through two investment programmes that target different types of projects. Our pre-seed grant programme supports early-stage applied research that shows commercial potential. The aim with a grant is to mature the given project for seed financing. We administer the pre-seed programme on behalf of the Novo Nordisk Foundation, and award grants to researchers at universities or medical staff at hospitals to allow them to take their projects to the next level. Novo Seeds also invests in early-stage companies through our seed investment programme. Unlike the pre-seed programme, our seed investments operate on commercial terms. We invest in advanced research projects that show significant commercial potential and typically take an equity position in the company, working actively with their team through our board position and other interactions. 2012 – a busy year for Novo Seeds In 2012, Novo Seeds expanded its focus area to include medtech projects and companies. Medtech consists of subgroups like in vivo and in vitro diagnostics, life science instruments and implants – and Scandinavian companies are famous for their first-class solutions in these sectors. With this initiative, we hope to exploit the commercial potential within medtech as well as diversify our current drug development portfolio. The Swedish company, Denator AB and Danish based Reapplix are our first investments in the medtech space. In addition to embracing medtech, we have focused on the commercial potential and validation of our existing portfolio. We have held regular presentations of selected portfolio companies for Novo Ventures and set up a business panel of experienced industry people who have given some of our portfolio companies advice on their commercial strategy and potential. Scandinavian universities have many valuable projects that they may not have time or staff resources to explore. Helping such projects to mature is a great way of making Scandinavian biotech flourish. E.g. Professor Stroemgaard and his post doc, Anders Bach received an exploratory pre-seed grant in January 2012. The aim was to obtain in vivo proof of concept for their dimeric peptides. Based on some very interesting positive data, Avilex Pharma was founded at the end of 2012 with a Novo Seed investment. We believe 2013 holds great promise for both pre-seed projects and early-stage companies. Pre-seed grants In 2012, Novo Seeds awarded four pre-seed grants. While the projects have diverse focus areas, they all share the use of innovative science to develop radically new products and technologies. The projects are: OptoRobotix originates from basic research conducted at the Department of Photonics Engineering at the Technical University of Denmark (DTU). The project aims to develop a cell sorting instrument based on optical catapult technology that can move small objects purely by the use of light. Evertogen was initiated at Odense University Hospital (OUH). The project explores a novel pathway for the treatment of glioblastoma, a severe form of brain tumor. VAR2 stems from the University of Copenhagen. It is based on discoveries of Malaria associated proteins that show high affinity and specific binding to cancer targets. InProTher is based on research conducted at the University of Copenhagen. The project develops a novel therapeutic vaccine against human papilloma virus (HPV). The vaccine is designed to provide broad coverage against circulating strains of HPV. Please visit www.novonordiskfonden.dk for more information on pre-seed grants. 18

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Seed investments 2012 Denator AB develops, markets and sells instruments and consumables to life science researchers. The company's products enable scientists to stabilize biological samples – such as tissue sections or cellular biopsies – from the moment of sampling. Normal degradation processes are stopped instantaneously and permanently, preventing the distortion of subsequent analytical results, thus revealing the true in vivo status of every sample. www.denator.com Avilex aims to obtain in vivo proof of concept for their dimeric peptides. Avilex Pharma was founded at the end of 2012 with a Novo Seed investment. Reapplix is a medical device company developing a device for autologous active wound care. In a simple process, Reapplix produces a three-layered biological patch out of a patient's own blood, within 20 minutes without using additives. The patch is developed for difficult-to-heal diabetic foot ulcers. Novo Seeds portfolio 2012 Acesion Pharma develops new treatments for the acute cardioversion of atrial fibrillation. www.acesionpharma.com Adenium Biotech develops broad-spectrum antibiotics for the treatment of Gram-negative bacterial infection. The lead programme has shown in vivo efficacy against a broad range of Gram-negative pathogens. www.adeniumbiotech.com Aros Pharma develops a new pharmaceutical product for relief of visceral pain. The company initiated its first clinical study in 2011, and a second clinical study in late 2012. www.arospharma.com Avilex develops dimeric peptides that target PSD95 for the treatment of neuropathic pain. Cytoguide's antibody-drug conjugate technology targets macrophages to treat inflammatory diseases and other indications where macrophages are involved (for example, cancer). www.cytoguide.dk C10 Pharma develops new macrolide antibiotics to combat severe respiratory infections caused by Gram-positive bacteria. www.c10pharma.com Concit Pharma identifies and develops innovative drug combinations for the treatment of movement disorders and pain. www.concitpharma.com Denator AB develops, markets and sells instruments that help scientists stabilize biological samples from the moment of sampling. www.denator.com EpiTherapeutics develops new cancer drugs to regulate epigenetic mechanisms. The company’s two most advanced programmes target breast cancer and esophagous cancer. www.epitherapeutics.dk Galecto Biotech develops anti-inflammatory treatments based on small molecules of galectin modulators. The company’s lead programme is in development for idiopathic pulmonary fibrosis (IPF). www.galecto.com Inagen develops new anti-viral treatments. The company’s primary drug candidate targets cells infected with cytomegalo virus (CMV). www.inagen.com Pcovery develops new broad-spectrum anti-fungal drugs targeting a proton pump essential for fungal survival. www.pcovery.com Reapplix develops a device for autologous active wound care. In a simple process, Reapplix produces a three-layered biological patch out of a patient's own blood. The patch is developed for difficult-to-heal diabetic foot ulcers. www.reapplix.com Thrombologic develops treatments for critically ill patients at risk of multiple organ failure. The lead programme, which is based on a combination of two approved drugs, is in clinical trial for severe bacterial pneumonia. www.thrombologic.com 19

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NOVO AN NUA L R E P O RT 2 0 12 / NOVO SE E D S NOVO SEEDS iNVESTS iN MEDTEch In March 2012, Novo Seeds added a new company – and a new sector – to its investment portfolio. Swedish Denator develops and markets instruments to stabilize biological tissue and fluids from the moment of sampling. Founded in 2004, this innovative medtech has already achieved great scientific and commercial results, making the company a perfect match for Novo Seeds’ investment programme. • Founded: 2004 • Founders: Karl Sköld and Olof Sköld • Management and board: Olof Sköld (CEO), Wenche Rolfsen (Chairman), Henrik Wingstrand (T-bolaget AB), Johan Crona (Almi Invest), Søren Møller (Novo A/S), Martin Nicklasson and Nils Kristensen (independent board members). Karl Sköld represents the founders on the board. • Number of employees: 12 • Location: Headquarters in Gothenburg, Sweden and additional research and applications facilities at the Uppsala Science Park, Sweden. 20

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The importance of proteins Whether they are building and repairing muscles, building structures, enzymes and antibodies, or promoting repair, maintenance and growth in the body – proteins play a vital role in living organisms. Without them, there would be no cell growth or maintenance. And without cells, there would be no life. It's as simple as that. The large-scale study of proteins – known as proteomics – is currently one of the most dynamic fields in life science. By unravelling protein expression, functions and modifications, researchers can show how proteins can be used for drug development, diagnostics, and as biomarkers for diseases such as cancer, as well as cardiovascular and neurodegenerative conditions. Researchers use biological samples to understand the molecular processes in both healthy and diseased cells. The problem is, however, that protein profiles begin to change within seconds of the tissue being removed from the organism. This means that vital information about the proteins may be lost or distorted, leading to incorrect data interpretation, and potentially misleading scientific conclusions. Researchers have tried to stop the degradation process by using rapid freezing or toxic inhibitors, but these techniques interfere with the biological sample and ultimately distort the subsequent analysis. Enter Denator In 2003 Karl Sköld, Swedish scientist and co-founder of Denator, discovered a simple solution to this problem. By subjecting the biological sample to rapid heat stabilization, it is possible to instantly and permanently denature the enzymes responsible for the biological changes, hereby preserving the true nature of the proteins in the sample. Joining forces with his brother Olof, an entrepreneur with astute business acumen, the Sköld brothers managed to turn Karl's discovery into the blueprint for a new medtech company, which they named Denator after the method of heat denaturation. Breakthrough technology In August 2008, Denator launched StabilizorTM – the instrument that performs the heat stabilization. By using Denator's heat stabilization technology, researchers can reveal in vivo protein profiles and identify new biological molecules that would have previously been lost due to rapid degradation. Such information is of particular significance to areas such as neuroscience and proteomics research, where short-lived molecules and potential biomarkers need to be confidently identified to understand disease mechanisms and identify potential drug targets or disease markers. Upstream stability ensures downstream reliability Denator's technology has already been implemented in laboratory workflows at research institutions in North America, Australia, and Europe. The products have been very well received by customers, who are delighted with the technology's performance. Professor Michael Dunn from the Proteome Research Centre at University College, Dublin – the first in a series of reference centres for the Stabilizor system – commends the instrument: ‘Denator's rapid heat inactivation technology is an important tool that will help further our understanding of the molecular basis of biological processes in healthy as well as diseased cells.’ Professor Jesper Velgaard Olsen, Vice Director at NNF Centre for Protein Research seconds Professor Dunn's praise. His research team is currently engaged in compiling a proteomic database that researchers can consult to get the full protein profile of the tissue in any organ in rats. ‘Denator's heat stabilization technology was valuable to our extensive mapping project. When building a reference database we needed to ensure the best possible correlation with the in vivo situation, and Denator's technology enabled us to do that.’ A perfect match Denator aims to be the leading supplier of heat stabilization instruments – and Novo Seeds is there to offer the support the company needs to reach that goal. ‘As an active investor, we're helping Denator consolidate its positi

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NOVO AN NUA L R E P O RT 2 0 12 / NOVO VE NTURE S NOVO VENTuRES iNVESTiNG iN biOTEch TO bRiNG iNNOVATiVE PRODucTS TO PATiENTS

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NOVO AN NUA L R E P O RT 2 0 12 / NOVO VE NTURE S A unique approach to venture investments Successful track record Novo's venture activities have produced a positive track record and established Novo as an important player in the international life science venture capital industry. After 13 years in the business, we have invested DKK 4.4 billion in 83 companies and successfully exited 29 companies primarily through trade sales and a few IPOs. Today, we have a diversified portfolio and a history of successful exits. The companies we have exited have produced positive financial results. At the same time, they have brought revolutionising products and technologies to market, improving the lives of thousands of people around the world. Creating value Novo's approach to venture capital investments is unique due to our special ownership structure. Novo has significant shareholdings in Novo Nordisk A/S and Novozymes A/S, but our venture investments are fully independent of the two major Novo Group companies. We focus on building and realising financial value in our portfolio as a specialised life science venture capital investor. In order to sustain the focus on financial return, all venture partners have a carried interest in the financial result of Novo's venture activities. Investing up to DKK 800 million annually Novo's venture investment activity is structured as an open evergreen fund with Novo as the only investor. This unique funding structure allows us to assume a long-term perspective when we make our investments; it also exempts us from the frameworks that many traditional venture capital funds are bound by. An international investor With activities in Copenhagen, San Francisco and London, Novo is positioned to reach the major global hubs of life science. Through its venture activities, Novo invests in biotechnology and life science companies in the US and Europe. As a key venture player with a strong network on both continents, Novo Ventures can quickly respond to new, interesting investment opportunities wherever they emerge. Our team also provides qualified on-site support to our portfolio companies by leveraging experiences gained from our broad-based life science portfolio. Portfolio 2000 – 2012 / Geographical allocation by DKK invested Portfolio 2000 – 2012 / Exits and IPOs by DKK invested USA 66% Denmark 16% United Kingdom 8% Canada 2% France 2% Finland 2% Switzerland 2% Austria 1% Sweden 1% Sold for cash 49% Liquidated 25% Sold for public shares 9% IPO not sold 9% Sold for private shares 8% 24

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Introducing the class of 2012 During 2012, Novo added nine new companies to its venture portfolio. Novo played a key role as lead or co-lead investor in all of these financings. Seven of the new portfolio companies are located in the US, while the two others are located in the UK. The new companies develop therapies for a variety of indications including cancer, skin diseases and endoscopic surgery. Novo was the lead investor in Alder Biopharmaceuticals Inc., which develops and manufactures novel antibody therapeutics to alleviate human suffering in cancer, pain, cardiovascular, autoimmune and inflammatory disease areas. Its lead project is in phase 2 development for the treatment of rheumatoid arthritis and cancer. Alder is located in Washington, US. Novo was the lead investor Allakos Inc., which develops monoclonal antibody-based therapies to target eosinophils and mast cells, two key pathogenic cell types in indications where there is significant unmet medical need. Its lead programme is in pre-clinical development. Allakos is located in California, US. Novo was a co-lead investor in Apollo Endosurgery Inc., which is a medical device company dedicated to flexible surgery emerging from the convergence of laparoscopic surgery and therapeutic gastroenterology. The lead product OverStitchTM is a 510(k) approved endoscopic suturing device for endoscopic placement of sutures and approximation of soft tissue. Apollo is located in Texas, US. Novo was the lead investor in Ceterix Orthopaedics Inc., whose lead product is an arthroscopic suturing device developed to be broadly applicable for joint repair. Ceterix is located in California, US. Novo was the lead investor in Flexion Therapeutics Inc., which discovers and develops a pipeline of sustained release drugs for intra-articular injection to treat osteoarthritis. Its lead programmes are in phase 2 clinical development. Flexion is located in Massachusetts, US. Novo was a co-lead investor in Karus Therapeutics Ltd., which develops innovative therapies for the treatment of inflammation and cancer. Its lead programmes of histone deacetylase and phosphoinositide 3-kinase inhibitors are in pre-clinical development. Karus is located in Hampshire, UK. Novo was the founding lead investor in NeRRe Therapeutics Ltd., a company based on clinical stage NK1 receptor antagonists. With the proceeds of this investment, NeRRe's lead project will enter phase 2 development for the treatment of an undisclosed orphan disease. NeRRe is located in Stevenage, UK. Novo was the lead investor in Thesan Pharmaceuticals Inc., which focuses on dermatology. Thesan's lead project is in pre-clinical development for the treatment of atopic dermatitis, which is a relapsing, chronic, inflammatory skin disorder characterised by flaky skin lesions and intense itching. Thesan is located in California, US. New portfolio company Alder Allakos Apollo Ceterix Flexion Karus NeRRe Thesan Focus area Rheumatoid arthritis and cancer Monoclonal antibody-based therapies Endoscopic surgery Joint repair Osteoarthritis Inflammation and cancer Orphan disease Atopic dermatitis Novo's role Lead investor Lead investor Co-lead investor Lead investor Lead investor Co-lead investor Founding lead investor Lead investor 25

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NOVO AN NUA L R E P O RT 2 0 12 / NOVO VE NTURE S Biotech's role as an innovator for big pharma Big pharma's challenges 2012 was the year in which the historic ‘patent cliff’ precipice was reached with generics to Plavix®, Seroquel®, Singulair® and Lexapro®, among others, entering the market. With over USD 290 billion of sales at risk from patent expirations in 2012-18, the patent cliff is indeed re-shaping the industry.1 The new big pharma For several years now, big pharma has been going through a transformation driven by looming patent cliffs, increasing emphasis on pharmaco-economics, genomics, healthcare reform and heightened regulatory pressures. Consequently, big pharma strategy is being revised, shifting from products prescribed by Primary Care Physicians (PCPs), which address common ailments, to smaller specialised drugs addressing well defined populations with clear unmet needs. Traditionally, the specialty pharma model revolved around in-licensed, re-positioned or reformulated molecules with low development risk. Today, however, big pharma has replaced that definition with one focusing on innovative niche products in areas such as oncology, virology, neurology and rare diseases. The specialty pharma paradigm Several factors have influenced big pharma's shift in strategy towards specialty care: Cost efficiencies in marketing and sales Companies can utilise specialised sales forces with fewer representatives, and support them with lower expenditures, in contrast to the large numbers of sales representatives needed to call on primary care physicians. Lower R&D costs Improving on current PCP drugs requires large clinical studies to demonstrate small, incremental benefits and clean safety profiles. This requires higher development costs with a limited return on investment. By contrast, R&D efforts in specialty medicine often demonstrate significant differences over shorter timeframes and with fewer patients. Consequently, these products are both less expensive and offer nearer-term opportunities for recovering the R&D investment. Less pricing pressure on reimbursement Due to lower generic competition, pricing pressure from payers is not as pronounced in the specialty drug market due to lower generic competition. Over the past few years, spending on traditional drugs increased by 0.1%, while spending on specialty drugs has increased by rates in the high teens for several years.2 Additionally, payers are often less concerned about specialty drug prices because the overall cost of treating a condition with relatively few patients frequently does not cause the same rigorous payer scrutiny as that which typically accompanies expensive new therapies in more widespread conditions. Americans have one of the nearly 7,000 diseases that are officially deemed ‘rare’ because each disease singularly affects fewer than 200,000 people. In 2011, more than 450 drugs were in development in the areas of rare cancers, genetic disorders, neurological and infectious diseases.4 All of the above-mentioned benefits of specialty drug development apply to, and are amplified in the rare disease space. Biotech's opportunity and Novo's venture commitment Big pharma is focused on replenishing its pipelines and increasingly relying on biotech to help fill the void. As big pharma further embraces specialty pharmaceuticals, windows of opportunity open up for smaller biotech companies to provide innovative solutions. The development of innovative specialty products – based on deep scientific understanding, known targets and high unmet clinical need – is indeed a task ideally suited for small biotech companies. Novo continues to partner with both pharma and biotech companies, facilitating innovation through funding companies with innovative science that target areas of significant unmet need in e.g. oncology, virology, inflammation, CNS disorders or the orphan disease area. With our financial strength and long terminvestment philosophy, Novo's venture activi

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Exits and products brought to market in 2012 In addition to financial success, our life science investments have resulted in a number of tangible products that improve the quality of life for patients. Approval of Seebri® Brezhaler® from Arakis 2012 was the year when the lead product from a previous exit from Novo's venture portfolio, Arakis got approval in Europe and Japan. In 2005, Novartis in-licensed the product rights to inhaled glycopyrronium bromide after a positive phase 2a study in patients with chronic obstructive pulmonary disease (COPD). Novartis successfully advanced the product candidate through further clinical studies and is now ready to market the drug for patients with COPD under ® the name Seebri® Breezhaler. This product contains a long-acting muscarinic antagonist, which, used once daily, is well suited for maintenance treatment of COPD. Phase 3 studies showed clinically significant superiority of glycopyrronium versus placebo for lung function improvements. Glycopyrronium exhibited a rapid onset of action within five minutes at first dose and reduced exacerbations. The product also demonstrated significant benefits in terms of reducing breathlessness, subsequently improving quality of life compared to placebo. In all studies, glycopyrronium was shown to have an overall safety profile similar to placebo. Novartis paid USD 375 million for the license for this potential blockbuster, including a USD 30 million upfront payment. Three Novo venture portfolio companies sold during 2012 Elevation Pharmaceuticals also develops inhaled glycopyrronium bromide for the treatment of COPD but in a nebulised form, which is different to the dry powder that Novartis now markets. The nebulised form is better suited for patients who are sicker, have cognitive impairment or a lower level of lung function. Sunovion Pharmaceuticals was convinced of inhaled glycopyrronium bromide's potential after seeing data from a seven-day phase 2b study with multiple dosages, placebo and active comparator. They paid USD 100 million upfront with an earn-out of another USD 300 million. Novo achieved a satisfactory multiple return from the upfront payment and can expect attractive earnings if further milestones are achieved. Funxional Therapeutics sold the rights to their lead programme, FX125L as well as their somatotaxin programme to Boehringer Ingelheim for an undisclosed upfront payment and earn-out, providing an immediate positive return for Novo A/S. Funxional Therapetics' lead programme, FX125L had shown positive effects in several different preclinical models covering a range of inflammatory diseases. It had also demonstrated good properties in phase 1 studies. Boehringer Ingelheim have a particular interest in advancing the drug in respiratory indications such as asthma and COPD. NeoMend was acquired by C. R. Bard in the last part of the year. In 2010, NeoMend achieved approval for ProGelTM, an advanced hydrogel used to seal air leaks after lung surgery. The launch went well and NeoMend initiated efforts and trials to expand the use of the product to other types of surgery. A focused effort on the operational side also resulted in good margins for the product. Finding the technology attractive, C.R. Bard put in a bid for the company of USD 140 million upfront and another USD 25 million in earn-out. Development of Novo Ventures' investments by number of companies ( 2000 – 2012) 55 50 45 40 35 30 25 20 15 10 5 0 00 Europe active portfolio Europe exits and IPOs 55 50 45 40 35 30 25 20 15 10 5 0 North America active portfolio North America exits and IPOs 01 02 03 04 05 06 07 08 09 10 11 12 00 01 02 03 04 05 06 07 08 09 10 11 12 27

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NOVO AN NUA L R E P O RT 2 0 12 / NOVO VE NTURE S The portfolio in figures Portfolio companies Location Novo capital injection DKK million Initial investment date % of shares owned Novo A/S on board (x) denotes observer post 15 –20 >20 <10 10 – 25 25 – 50 50 –75 >75 < 5% 5 –10 10–15 Alder Alios Allakos Allocure AnaptysBio Apollo Asante Biotie Cardeas Ceterix Cianna Delenex Epsilon-3 Bio F-star FLAPCo Flexion HTG Imagen Inogen KalVista Karus Lux Metabolex NeRRe NeuroTherapeutics Ophthotech Orphazyme Otonomy Panmira ProteinSimple PTC Reata Santaris Tarsa Thesan Tobira Vantia Veloxis Xenon USA USA USA USA USA USA USA FIN USA USA USA CH UK A USA USA USA USA USA UK UK USA USA UK USA USA DK USA USA USA USA USA DK USA USA USA UK DK CAN 2012 2008 2012 2008 2007 2012 2005 2006 2011 2012 2011 2011 2011 2007 2011 2012 2011 2011 2006 2011 2012 2006 2004 2012 2006 2007 2011 2010 2011 2003 2001 2006 2000 2009 2012 2010 2008 2003 2001 x x x x x x x x x x x x x x x x x x x x x (x) x x x x x x x x x x x x x x x 28

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Active portfolio companies North America Alder Alios Allakos AlloCure AnaptysBio Apollo Asante Cardeas Ceterix Cianna FLAPCo Flexion HTG Imagen Inogen Lux Metabolex NeuroTherapeutics Ophthotech Otonomy Panmira ProteinSimple PTC Reata Tarsa Thesan Tobira Xenon Bothell, WA, USA South San Francisco, CA, USA San Francisco, CA, USA Burlington, MA, USA San Diego, CA, USA Austin, TX, USA Sunnyvale, CA, USA Seattle, WA, USA Menlo Park, CA, USA Aliso Viejo, CA, USA San Diego, CA, USA Woburn, MA, USA Tucson, AZ, USA New York, NY, USA Goleta, CA, USA Jersey City, NJ, USA Hayward, CA, USA Chicago, IL, USA Princeton, NJ, USA San Diego, CA, USA San Diego, CA, USA Santa Clara, CA, USA South Plainfield, NJ, USA Irving, TX, USA Philadelphia, PA, USA Irvine, CA, USA South San Francisco, CA, USA Burnaby, BC, CAN Europe Biotie Delenex Epsilon-3 Bio F-star KalVista Karus NeRRe Orphazyme Santaris Vantia Veloxis Turku, FI Zürich, CH Cambridge, Cambridgeshire, UK Vienna, AT Porton Down, Wiltshire, UK Southampton, Hampshire, UK Stevenage, Hertfordshire, UK Copenhagen, DK Copenhagen, DK Southampton, Hampshire, UK Copenhagen, DK 29

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NOVO AN NUA L R E P O RT 2 0 12 / NOVO VE NTURE S Portfolio company achievements in 2012 Business news AlloCure raised USD 25 million in a Series B venture financing to support the phase 2 trial of a novel therapy for acute kidney injury. AnaptysBio announced antibody discovery partnerships with Novartis, Gilead Sciences and Celgene Corporation to develop novel antibody therapeutics. Apollo received 510(k) clearance by the FDA for its SuMO™ endoscopic tissue access and resection system. Elevation was acquired by Sunovion Pharmaceuticals Inc. with an upfront payment of USD 100 million and potential additional milestone payments totaling USD 300 million. Funxional sold its lead asset to Boehringer Ingelheim GmbH and a distribution was made to shareholders. HTG established a collaborative programme with Sanofi to identify biomarkers that may lead to the development of a molecular companion diagnostic test. This test will help to identify the patients most likely to respond to a novel Sanofi investigational agent KalVista and JDRF formed a research partnership to develop a novel approach for treating diabetic eye disease. NeoMend received the European Union CE Mark for the company's Progel® Adhesion Barrier product and was acquired later in the year by C.R. Bard for an upfront payment of USD 140 million, with USD 25 million in milestones. Tarsa completed a USD 28 million Series B financing and signed a commercial supply agreement with QS Pharma for its OSTORA™ oral calcitonin product. Veloxis announced an agreement with Chiesi Farmaceutici S.p.A. to commercialise and distribute its investigational drug candidate, LCP-Tacro™ in Europe, Turkey and CIS countries. Product development Alios and Vertex Pharmaceuticals announced positive results from a seven-day viral kinetic study of the nucleotide analogue ALS-2200 for the treatment of hepatitis C. AlloCure initiated a phase 2 clinical trial of AC607 as a potential treatment for acute kidney injury and received 'Fast Track' designation by the FDA. Biotie's tozadenant met primary and multiple secondary endpoints in a phase 2b study in Parkinson's disease. Cardeas initiated a clinical trial of inhaled antibiotics as a potential treatment for ventilator associated pneumonia. Elevation announced positive phase 2b results for EP-101 for the treatment of chronic obstructive pulmonary disease. Ophthotech announced results from a phase 2b clinical trial to show statistically significant superior efficacy of Fovista and Lucentis combination therapy over Lucentis® (ranibizumab) monotherapy for the treatment of neovascular age-related macular degeneration. ProteinSimple introduced Sally and Peggy as the next members of the revolutionary Simple Western product family. PTC announced top-line data demonstrating positive trends from a phase 3 trial of ataluren in patients with nonsense mutation cystic fibrosis. Tarsa reported positive results from a phase 2 trial of its oral calcitonin for the prevention of post-menopausal osteoporosis. Tobira's lead programme Cencriviroc met the primary endpoint of non-inferiority to Sustiva in a phase 2b study. 30

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Accumulated number of companies (as of 31 December 2012) 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 0 20 40 60 80 Accumulated cost of investments DKK million (as of 31 December 2012) 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 Active Exits: IPOs, trade sales and liquidations Venture funds Direct Investments 31

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NOVO AN NUA L R E P O RT 2 0 12 / NOVO VE NTURE S Apollo Endosurgery – providing instruments for incision-less surgery Innovation developed for non-invasive GI tract procedures Apollo Endosurgery was founded in 2006 to commercialise a set of innovations from the Apollo Group, a team of gastroenterologists and surgeons from leading universities and medical institutions in the US and Hong Kong. The Apollo Group believed the endoscope could potentially be used for surgical procedures in the gastrointestinal (GI) tract. Until then, the instrument had only been used for diagnostic procedures – mostly to visualise and subsequently obtain esophageal or intestinal samples for testing. The Apollo Group was inspired by the adoption of minimally invasive abdominal surgery, also known as laparoscopic surgery. This type of surgery has been used over the last couple of decades with increasing frequency rather than traditional open abdominal surgery. Laparoscopic procedures are done through small incisions in the abdomen, and the benefits of laparoscopic procedures over open surgery includes faster recovery times, smaller incisions and scars, less haemorrhaging and, not least, less pain. There have been attempts in the past to develop devices for surgical GI interventions. However, these have generally been designed for a very specific use or have involved complex engineering solutions with significant cost of goods, which has prevented widespread adoption. OverStitchTM enables surgery within the GI tract The result from the Apollo collaboration culminated in 2012 when Apollo Endosurgery launched the new generation OverStitchTM device, moving the endoscopic procedures from being limited to diagnostic procedures and tissue sampling to include surgical procedures from within the GI tract. OverStitchTM is essentially an elegantly designed curved suturing needle that can be placed at the tip of a commercially available endoscope. Through manipulation with wires, the surgeon makes sutures in the GI tract. Surgeons have successfully used the device for a range of endogastric procedures, for instance bariatric repair, GI bleedings, fixation of GI stents, closing of fistulas, and for the treatment of gastroesophageal reflux disease. Apollo Endosurgery also markets newly developed auxiliary tools such as the HelixTM to help manipulate tissue during GI surgery. Approved and launched at the end of 2012, the Apollo OvertubeTM is used to protect the esophagus while delivering a flexible endoscope and surgical instruments to the GI tract. All the tools are compatible with existing flexible endoscope technology. CEO Dennis McWilliams says the company is focused on commercialising its products and making the tools available for surgeons around the world. They are also keen to interact with surgeons to develop new surgical procedures that can treat patients in more effective, safe and less traumatic ways. The company recently named former Covidien Chairman and CEO Richard Meelia to its board of directors. Apollo Endosurgery • Founded in 2006 to commercialise a set of innovations from the Apollo Group, a team of gastroenterologists and surgeons from leading universities and medical institutions in the US and Hong Kong • Located in Texas, US • Major investors: Novo A/S, PTV, H.I.G, Remeditex, CPMG Apollo's OverStitchTM and HelixTM enable surgeons to perform advanced suturing in the GI tract. 32

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Karus Therapeutics – creating innovative treatments for inflammatory diseases and cancer Targeted approaches in immunology and oncology Karus is developing innovative first and best-in-class small molecule drugs to treat inflammatory diseases and cancer. These programmes build on the company's scientific heritage in epigenetics and lipid kinase signalling that influences a variety of cellular functions. They also rely on management's detailed understanding of the underlying biology and a proven track record of drug design. Originally a spin-out from the University of Southampton UK, Karus was established in 2005 to develop a research-stage cancer programme. In 2008, Karus's CEO Simon Kerry persuaded Stephen Shuttleworth to join the company and the combination of Simon's business experience and Stephen's trackrecord in the design of new drugs transformed Karus into a company with two innovative, first-in-class drug programmes. Following a successful Series B financing, Karus is in the process of finalising its development candidates and planning IND-enabling studies as a precursor to human trials. A strong demand for innovative, selective and potent drugs The development of an oral anti-inflammatory drug that has the efficacy and safety profile of the current best-in-class injectable biologics (e.g. Enbrel) remains a significant challenge to the pharmaceutical industry. However, current data from Karus's therapeutic programmes indicate that this goal is within reach. Karus is able to design new drugs with an optimal selectivity profile that maximises efficacy and minimises side-effects. The company anticipates that its drug candidates will be able to treat a wide variety of inflammatory diseases, including rheumatoid arthritis, psoriasis, multiple sclerosis and chronic asthma. Karus is also exploring the use of its drug candidates in treating selected solid and haematological tumours. Karus is a semi-virtual company, retaining key chemistry and biology functions in-house, whilst working alongside an international network of academic groups and contract research organisations. Karus Therapeutics • Founded in 2005 as a spin-out from the University of Southampton, UK • Key management: Simon Kerry (CEO) and Stephen Shuttleworth (CSO) • Located in Southampton, UK • Employs nine people, of which seven are scientists • Discovers and develops innovative, selective inhibitors of PI3K and HDAC6 for the treatment of inflammatory disease and cancer • Major investors: Novo A/S, SV Life Sciences, New Leaf Venture Partners and IP Group A lipid kinase is an enzyme that adds phosphate groups to fat molecules, thus changing their properties. Epigenetics is the study of inherited traits that are due to factors other than changes in DNA sequence. The cover of Molecular Cancer Therapeutics, a publication issued by the American Association for Cancer Research, presents an image of the PI3K inhibitor that was designed by Dr. Stephen Shuttleworth, now the CSO of Karus. 33

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NOVO AN NUA L R E P O RT 2 0 12 / NOVO VE NTURE S Portfolio companies Private Alder Biopharmaceuticals Inc. develops novel antibody therapeutics to treat cancer, pain, cardiovascular and inflammatory diseases. Its lead programmes are in phase 2 development for the treatment of rheumatoid arthritis and cancer. www.alderbio.com Asante Solutions Inc. has developed an easy-to-use, disposable insulin pump that is both affordable and reliable. The pump is 510(k) approved in the US and CE marked in Europe. The company is in pre-launch phase. www.asantesolutions.com FLAPCo LLC is a non-operational entity that was set up after the acquisition of Amira by BristolMyers Squibb Inc. FLAPCo holds the rights to the FLAP antagonists licensed to GlaxoSmithKline by Amira Pharmaceuticals Inc. Alios BioPharma Inc. develops novel treatments against viral diseases. Its lead programme is in phase 2 clinical development targeting HCV polymerase and is partnered with Vertex. www.aliosbiopharma.com Cardeas Pharma Inc. develops a treatment for the prevention of ventilator associated pneumonia. Its lead product is in phase 1 clinical development. www.cardeaspharma.com Flexion Therapeutics Inc. discovers and develops a pipeline of sustained release drugs for intra-articular injection to treat osteoarthritis. Its lead programmes are in phase 2 clinical development. www.flexiontherapeutics.com Allakos Inc. develops monoclonal antibody-based therapies to target eosinophils and mast cells, two key pathogenic cell types in indications where there is significant unmet medical need. Its lead programme is in pre-clinical development. www.allakos.com Ceterix Orthopaedics Inc. develops novel surgical tools for arthroscopic procedures. This technology has applications in numerous arthroscopic procedures in knees, hips and shoulders. www.ceterix.com HTG Molecular Diagnostics Inc. develops and sells assays for quantification of gene expression. The assays are used for clinical diagnostics and in research. www.htgmolecular.com AlloCure Inc. is dedicated to developing adult stem cell therapies. The lead programme is in phase 2 clinical development in the field of acute renal failure. www.allocure.com Cianna Medical Inc. is a medical device company that manufactures and markets the SAVI breast brachytherapy applicator, for the delivery of radiation after lumpectomy surgery. www.ciannamedical.com Imagen Biotech Inc. aims to develop treatments for dry age-related macular degeneration. www.imagenbiotech.com AnaptysBio Inc. is an antibody therapeutics company and emerging leader in antibody discovery and optimisation. www.anaptysbio.com Delenex Therapeutics AG develops therapeutic antibody fragments targeting diseases with unmet need. These antibody fragments are being designed for local/topical use. www.delenex.com Inogen Inc. is developing, manufacturing and marketing lightweight, portable oxygen therapy devices to improve quality of life and increase mobility for patients with chronic obstructive pulmonary disease. www.inogen.net Epsilon-3 Bio Ltd. Apollo Endosurgery Inc. is a medical device company dedicated to flexible surgery and has launched OverStitchTM, a 510(k) approved endoscopic suturing device. www.apolloendo.com Epsilon-3 Bio Ltd. develops compounds targeting the removal of cellular debris in chronic inflammatory and autoimmune disorders. The lead compound is in pre-clinical development. KalVista Pharmaceuticals Ltd. develops plasma kallikrein inhibitors for the treatment of diabetic macular oedema. Its lead programme is in pre-clinical development. www.kalvista.com F-star GmbH develops improved therapeutic antibody fragments based on its unique modular antibody technology. Its lead compound is in preclinical development. www.f-star.com Karus Therapeutics Ltd. develops innovative therapies for the treatment of inflammation and cancer. Its lead programmes are in pre-clinical development and focus on histone deacetylase and phosphoinositide 3-kinase inhibitors. w

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Private Lux Biosciences Inc. is dedicated to the development and commercialisation of products for the treatment of ophthalmic diseases. www.luxbio.com Panmira Pharmaceuticals LLC was created after the acquisition of Amira Pharmaceuticals Inc. by Bristol-Myers Squibb Inc. Panmira holds a number of anti-inflammatory assets that were spun out of Amira, and the company seeks to partner these programmes. www.panmira.com Tobira Therapeutics Inc. develops products for the treatment of viral diseases. The lead compound, a CCR5 antagonist for the treatment of HIV infection, is in phase 2b clinical development. www.tobiratherapeutics.com Metabolex Inc. develops novel therapeutics to treat metabolic disorders. Its lead programme is in phase 2 clinical development. www.metabolex.com ProteinSimple develops instrumentation systems, software and assay products targeting protein research, biomarker discovery and personalised medicine. www.proteinsimple.com Vantia Therapeutics Ltd. develops small molecule agonists of vasopressin receptors. Its lead asset is in phase 2 clinical development for the treatment of nocturia. www.vantiatherapeutics.com NeRRe Therapeutics Ltd. is based on clinical stage NK1 receptor antagonists. Its lead project will enter phase 2 development for the treatment of an undisclosed orphan disease. PTC Therapeutics Inc. discovers and develops small molecule drugs that modulate gene expression. Its lead programmes are in pivotal clinical development for the treatment of Duchenne muscular dystrophy and cystic fibrosis. www.ptcbio.com Xenon Pharmaceuticals Inc. is a geneticsbased drug development company, discovering innovative drugs. Its lead compound is in clinical development for the treatment of pain. www.xenon-pharma.com NeuroTherapeutics Pharma Inc. is focused on developing novel small molecule therapeutics for diseases associated with CNS hyperexcitability, including epilepsy and pain. Its lead candidate is in pre-clinical development. www.ntprx.com Reata Pharmaceuticals Inc. develops new drugs for the treatment of kidney disease and inflammatory diseases. www.reatapharma.com Ophthotech Corporation is focused on developing improved therapies for wet age-related macular degeneration. Its lead compound has completed phase 2 clinical development. www.ophthotech.com Orphazyme ApS develops novel therapeutics for the treatment of lysosomal storage diseases. Its lead programme is in pre-clinical development. www.orphazyme.com Santaris Pharma A/S is in clinical development of RNA antagonist drugs against metabolic disorders and viral disease. Its lead programme is in phase 2 clinical development for the treatment of hepatitis C. www.santaris.com Otonomy Inc. develops novel drug therapies for disorders of the inner and middle ear. Its lead candidate is ready to enter phase 2 clinical development for the treatment of Ménière's disease. www.otonomy.com Tarsa Therapeutics Inc. develops an oral calcitonin for the treatment of osteoporosis and has announced positive phase 3 data. www.tarsatherapeutics.com Thesan Pharmaceuticals Inc. develops novel treatments of dermatological disorders. Its lead project is in pre-clinical development. www.thesanpharma.com 35

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NOVO AN NUA L R E P O RT 2 0 12 / NOVO VE NTURE S Portfolio companies Public Biotie Therapies Corporation is focused on the development of drugs for neurodegenerative and psychiatric disorders. www.biotie.com Veloxis Pharmaceuticals A/S has a new and improved once-daily tacrolimus product in latestage clinical development, based on a novel drug delivery platform. www.veloxis.com 36

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Selected exits ActivX Biosciences Inc. was acquired by Kyorin Pharmaceutical Co. Ltd. in 2004. Amira Pharmaceuticals was acquired by BristolMyers Squibb in 2011. Arakis Ltd. was acquired by Sosei Co. Ltd. in 2005. Arpida Ltd. went public in 2007. Cabrellis Pharmaceuticals Corp. was acquired by Pharmion Corporation in 2006. Combio A/S was acquired by Arpida Ltd. in 2004. Conforma Therapeutics Corp. was acquired by Biogen Idec in 2006. Corus Pharma Inc. was acquired by Gilead Sciences Inc. in 2006. Elevation Pharmaceuticals Inc. was acquired by Sunovion Pharmaceuticals Inc. in 2012. FoldRx Pharmaceuticals Inc. was acquired by Pfizer Inc. in 2010. Funxional Therapeutics Ltd. sold its lead asset to Boehringer Ingelheim GmbH in 2012 and a distribution was made to shareholders. Gloucester Pharmaceuticals was acquired by Celgene Corporation in 2010. InSound Medical Inc. was acquired by Sonova Holding AG in 2010. NeoMend Inc. was acquired by C.R. Bard Inc. in 2012. Neurodan A/S was acquired by Otto Bock GmbH in 2005. Novexel S.A. was acquired by AstraZeneca in 2010. Panacos Pharmaceuticals Inc. went public in 2007. Protein Forest Inc. was acquired by ProteinSimple Inc. in 2009. Salmedix Inc. was acquired by Cephalon Inc. in 2005. Sapphire Therapeutics Inc. was acquired by Helsinn Healthcare SA in 2009. Sosei Co. Ltd. acquired Arakis Ltd. in 2005. Synosia Therapeutics was acquired by Biotie Therapies Corporation in 2011. Thiakis Ltd. was acquired by Wyeth Pharmaceuticals in 2008. ZymoGenetics Inc. was acquired by BristolMyers Squibb in 2010. 37

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NOVO AN NUA L R E P O RT 2 0 12 / NOVO G ROWTH E QUI TY NOVO GROWTh EQuiTy DRiViNG chANGE – fROM PRODucT TO PROfiT

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N OVO AN N UA L R E P O RT 2 0 1 2 / NOVO G ROWTH E QUI TY Growing out of Growth Equity Larger investments, later stage Since 2009, Novo's Growth Equity team has headed our late-stage investments in earlystage commercial companies. During 2012, the Board of Novo reconfirmed the strategy to keep our financial capacity ‘active’ by reinvesting yields in promising companies within the life sciences sector, rather than accumulate financial holdings. This strategy will secure diversity in Novo's portfolio of investments and help achieve attractive long-term financial yields. Novo's late-stage investment activities will now be targeted towards well-established life science enterprises that have positive cash flow, strongly positioned products and attractive long-term prospects. The goal for Novo is to create value through active support and long-term ownership. These late-stage investments may amount to several billion DKK per company in exchange for influential equity ownership stakes in both publicly listed and privately owned companies. This strategy is exemplified by Novo's recent move to become the major shareholder in Chr. Hansen Holding A/S. 40

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Aerocrine AB A medical technology company focused on improving treatment for patients with inflamed airways. Archimedes Pharma Ltd. A specialty pharmaceutical company focused on the oncology, pain, neurology and critical care sectors. Orexo AB A specialty pharmaceutical company focused on the therapeutic areas of pain and inflammation. Facts about Aerocrine AB: • Founded in 1997 • Headquartered in Solna, Sweden • Major investors include Novo A/S and Investor AB • Public company. Listed on the Stockholm Stock Exchange since 2005. Code: AERO • Turnover ~USD 22 million • Novo affiliated board member: Scott Beardsley, Partner, Novo Ventures (US) Inc. • www.aerocrine.com News and achievements in 2012: • March: Aerocrine launched fully underwritten rights issue of SEK 259 million. • April: The American Academy and the American College of Allergy, Asthma and Immunology issued a joint position statement in support of the American Thoracic Society Guidelines on FeNO. • May: NIOX MINO® received marketing approval for the Australian market. • August: Aerocrine and Stallergenes signed an exclusive distribution agreement to initially cover the markets of France, Italy, Poland, Turkey and the Middle East. • September: Aerocrine signed an import and distribution agreement with Shanghai Pharmaceuticals Holding Co. Ltd. for the Chinese market. Facts about Archimedes Pharma Ltd.: • Founded in 2004 • Headquartered in Reading, UK • The company is fully owned by Novo A/S • Private company • Turnover ~USD 50 million • Novo's representatives on the board: Göran Ando, member of the Board of Novo A/S, and Ulrik Spork, Managing Partner, Novo A/S • www.archimedespharma.com News and achievements in 2012: • May: Timothy Rothwell was appointed non-executive Chairman. • June: In response to unexpected high entry barriers for the commercialisation , activities in the of key product Lazanda® US subsidiary were restructured. • July: Signed licensing agreement with Astra-Zeneca for the commercialisation of PecFent® in Australia and New Zealand. Facts about Orexo AB: • Founded in 1995 • Headquartered in Uppsala, Sweden • Major investors include Novo A/S and HealthCap • Public company. Listed on the Stockholm Stock Exchange since 2005. Code: ORX • Turnover ~USD 50 million • Novo affiliated board member: Michael Shalmi, Senior Partner, Novo A/S • www.orexo.com News and achievements in 2012: • January: Orexo and Janssen Pharmaceuticals, Inc. end research collaboration. • May: Company sharpened focus on development and commercialisation of proprietary products, and accelerated the development of OX219. • June: Acquired US commercial rights of Abstral. ProStrakan acquired the corresponding rights in the EU and rest of the world. • October: Guggenheim Securities LLC was retained to explore strategic alternatives for commercialisation in the US. • November: The FDA accepted the application for registration of Zubsolv™ (OX219) five months earlier than planned. 41

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NOVO AN NUA L R E P O RT 2 0 12 / NOVO FI NA NC E NOVO fiNANcE PERfORMANcE iS MEASuRED AGAiNST A NuMbER Of bENchMARkS

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N OVO AN N UA L R E P O RT 2 0 1 2 / NOVO FI NA NC E Financial investments Developments in the financial markets Despite concern at the beginning of the year, 2012 turned out to be a great year for most asset classes in the financial markets. In the early months of the year, the crisis in Southern Europe escalated, and most market participants were anxious to see how the Greek debt restructuring would turn out. Investors in particular were very concerned about the financial situation in Greece, Portugal, Ireland, Italy and Spain. The US economy was in better shape, but still struggling with problems of its own: high unemployment, a weak housing market and a massive government debt burden and fiscal deficit. As a result of this apprehensive atmosphere, we started the year with an underweight in risky assets such as equities and credit bonds, and with a corresponding overweight in more secure assets such as Danish government and mortgage bonds. As we have seen several times in the past, the financial markets were rescued by a central bank providing new liquidity to the financial system. This time, it was the European Central Bank (ECB) that stepped in, launching the so-called Longer-Term Refinancing Operations (LTRO). This programme allowed European banks to get access to cheap liquidity for a three-year period – which solved an immediate liquidity problem particularly for the weaker banks. The first round of LTRO was announced just before Christmas 2011, and the second round was announced in February 2012. Although the fundamental problems in the European economy remained unsolved, the ECB actions provided significant optimism in the financial markets. While we were surprised by the strong rally in most asset prices, we stayed loyal to our preferred way of investing, which is bottom-up security selection. This approach gave us several excellent investment opportunities in the first quarter of 2012. Our big opportunity came in the second quarter of 2012 when the financial markets unexpectedly changed its focus. Europe was on the ‘problem agenda’ once again, and we used this market setback as an opportunity to invest more than DKK 1.5 billion in stocks and credit bonds. Once again, we reaped the benefits of having sufficient dry powder to invest. During this period, Denmark and a few other European countries were considered to be a safe haven. For the first time ever, this drove short-term government bond yields into negative territory. Consequently, Denmark experienced a considerable inflow of foreign currency, which significantly increased the currency reserves and resulted in an upward pressure on the Danish krone. To stabilise the krone, the Danish Central Bank responded by lowering the leading interest rates. ‘Whatever it takes to save the Euro’, ECB President Draghi famously declared in July, a statement that initiated the rally in most asset prices in the second half of 2012. This was further supported by another round of quantitative stimulus from the Fed, known as QE3. Perhaps the market's anticipation and reaction to such measures was somewhat subdued compared to the past, but nonetheless it provided a supportive environment for more risky assets. In our view, we are still looking at a world with too much debt in most developed countries, which makes it difficult for most of them to kick-start their economies. Although the actions taken by the central banks help to stimulate economic growth, we do not believe this is adequate. If we are to get our hopes up, we need to see more momentum in the real underlying economy, e.g. productivity gains and new job creation. In the final months of the year, the US housing market showed signs of improvement, which could be the turning point for the US economy. For the coming year, we expect low returns on most asset classes coupled with a general high-risk level, which consequently makes us cautious when we assess new investments. Summing up 2012 By the end of 2012, the S&P 500 Index

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In general, the credit spread tightened in 2012. Today, the level of credit spread for corporate credits is close to the long-term average, whereas the spread for emerging market debt is closer to the levels before the financial crisis. However, taking into account the low underlying yield, the all-in yield is now well below the long-term average for both credit areas. Asset management Novo's financial investments are managed internally and externally through portfolio managers. We wish to build long-term relationships with our external portfolio managers, and we are very careful to select the right people. Our portfolio managers must have: • a coherent and well-defined investment strategy that has proven successful over a number of years; • a business-like investment approach with a long-term investment horizon; • a passion for investments and a high level of integrity; • a large part of their private wealth invested alongside Novo's; • a limited amount of assets under management; and • a fair fee structure. At the end of 2012, our investments in equities were split between 13 active external managers in a mix of global, regional and country-specific mandates. In addition to the active managers, we have a portfolio of index mandates. By the end of the year, the global equity mandates amounted to DKK 2,410 million, while region or country-specific mandates amounted to DKK 4,920 million. The index mandates totalled DKK 3,220 million. Our Danish bond portfolio mostly consists of listed government and mortgage bonds and is managed internally. By 31 December 2012, the bond portfolio and fixed-term deposits amounted to DKK 3,630 million. Novo's portfolio of credit bonds includes six external mandates, which amounted to DKK 2,570 million at the end of the year. We also have one external mandate on emerging markets bonds, totalling DKK 725 million. Benchmarks Novo's investment performance is evaluated against a number of benchmarks. We use the MSCI World Index to evaluate listed equities; Danish bonds are measured against the EFFAS 1-3 Index; and the Merrill Lynch Global High Yield Index is used as the benchmark for credit. We use the J.P. Morgan Emerging Market Bond Index to evaluate our performance for emerging market debt. Illiquid investments Novo has invested a small percentage of its financial investments in illiquid assets. As of 31 December 2012, the total commitment to private equity was unchanged at DKK 875 million, of which DKK 550 million was committed to direct private equity funds and DKK 325 million to fund-of-funds. The commitment to credit funds and real estate funds also remained unchanged at DKK 430 million and DKK 449 million by the end of the year. Most of the commitments to illiquid financial investments were made during the period 2005 – 2010, and the portfolio has now entered a mature stage, where the drawdowns are declining and cash is being returned. Within private equity, we have invested DKK 869 million out of a total commitment of DKK 1,309 million. Within real estate, we have invested DKK 390 million out of a total commitment of DKK 449 million. Returns Novo's portfolio outperformed the relevant benchmarks in 2012. This year, the time weighted return on the portfolio was 11.7 %, against a weighted benchmark of 10.4 %. Since 2005 when Novo expanded the scope of its financial investments, the annual average return has been 6.0 % against an annual benchmark return of 3.2 % over the same period. Novo's portfolio has performed better than the benchmark portfolio, mainly because our portfolio managers have performed better than benchmark despite a risk profile that was lower than benchmark. The lower risk is explained by a periodical underweight in listed equities and an overweight in government and mortgage bonds. Moreover, the dividends from Novo Nordisk and Novozymes, as well as revenue from the sale of Novo Nordisk B shares, have been invested at a gradual pace. This has contributed to an average underweig

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NOVO AN NUA L R E P O RT 2 0 12 / THE NOVO G ROUP ThE NOVO GROuP Charter for Companies in the Novo Group The Charter for Companies in the Novo Group describes the common set of values for companies in the Novo Group. Present as well as future companies in the Novo Group must demonstrate willingness, ability and resolve to meet the following criteria: • Company products and services make a significant difference in improving the way people live and work. • The company is perceived to be an innovator – in technology, in products, in services and/or in market approach. • The company is among the best in its business and a challenging place to work. • The company delivers competitive financial performance. Companies in the Novo Group commit to: • Value-based management; • Open and honest dialogue with its stakeholders; • Continuous improvement of financial performance / environmental performance / social performance; and • Reporting in accordance with relevant, internationally approved, conventions. 46

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The Novo Nordisk Foundation How can we combat diseases more effectively and use natural resources more intelligently? How can we facilitate innovation? How do we get biomedical and biotechnological research to blossom? How do we attract and retain the best researchers? These are some of the important challenges, the Novo Nordisk Foundation wishes to address. The main objectives of the Foundation are to: • provide a stable basis for the commercial and research activities conducted by the companies in the Novo Group; and • support scientific, humanitarian and social causes. The Foundation's history dates back to the 1920s and ever since Nobel laureate August Krogh, one of the Foundation founders, got permission to produce insulin in the Nordic countries, the Foundation has been focused on giving back to society by supporting research that improves the health and welfare of people. The Foundation aims to use its independence, flexibility and long-term perspective to promote and support world-class research within biomedicine and biotechnology. Further, it is the ambition of the Foundation that by generating research-based products and services, the Novo Group companies will position themselves as internationally recognized actors in the combatting of diseases and the more intelligent use of natural resources. Today, the Foundation has become one of the largest private Danish contributors of funding to biomedical and biotechnological research in the public sector. Respecting free and independent research The Board of the Novo Nordisk Foundation specifies the grant areas, grant types and financial terms for funding. Within this framework, the Foundation ensures that each project is assessed by experts who evaluate the project on the basis of its quality, potential and feasibility – as well as the applicant's qualifications – before a grant decision is made. For this purpose, the Foundation has 10 committees consisting of a total of 45 experts at a high international level, just as the Foundation makes use of external, international experts. All grants awarded by the Foundation support free and independent research of high quality. The researchers decide their research priorities; they are able to publish as they wish; and the IPR belongs to them. According to the Articles of Association, the Foundation supports: • biomedical research, including basic, translational, clinical, and public health science research; • research hospital activities at Steno Diabetes Center; and • other scientific as well as humanitarian and social purposes. The Foundation finances its activities by actively administrating its assets via its fully owned company, Novo A/S. The income consists of: • dividends from wholly and partly owned companies; and • returns from financial investments. The Novo Nordisk Foundation Research Centre Cluster Since 2007, the Foundation has donated a total of DKK 3.1 billion (Euro 420 million) to establish a national biobank and four major research centers within stem cells, proteins, metabolism and biosustainability. The research centers are established at universities in the Greater Copenhagen area. The ambition is to develop and strengthen the scientific competencies in the region and achieve world-class scientific results. Selected grant activities 2012 In 2012, the Novo Nordisk Foundation has awarded grants of in total DKK 961 million, including: • DKK 411 million to an expansion and a further internationalisation of the Novo Nordisk Foundation Center for Biosustainability • DKK 276 million to individual research projects and scholar- and fellowships awarded through the Foundation's committees • DKK 202 million to establish the Danish Diabetes Academy • DKK 48 million to the Steno Diabetes Center • DKK 10 million to pre-seed projects (in collaboration with Novo Seeds) • DKK 4 million to art related research • DKK 3 million for humanitarian and social causes. Learn more about the Novo Nordisk Foundation at www.novonordiskfo

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N OVO AN N UA L R E P O RT 2 0 1 2 / THE NOVO G ROUP Novo Nordisk A/S Novo Nordisk is a global healthcare company with 90 years of innovation and leadership in diabetes care. The company also has leading positions within haemophilia care, growth hormone therapy and hormone replacement therapy. The company’s key contribution is to discover and develop innovative biological medicines and make them available to patients throughout the world. This purpose is stated in the Novo Nordisk Way, which describes the ambitions and the values that characterise the company. The Novo Nordisk Way also emphasises the importance of accounting for financial, social and environmental performance in accordance with the Triple Bottom Line business principle that is anchored in the company’s Articles of Association. accounts for 49%, oral diabetes products for 45% and GLP-1 products for 6%. The main contributors to growth were Victoza®, GLP-1 therapy for type 2 diabetes, and the company’s portfolio of modern insulins. Sales of biopharmaceutical products increased by 8% measured in Danish kroner to DKK 17,139 million and by 2% measured in local currencies, primarily driven by higher sales in the US, partly countered by lower sales in Europe. A major accomplishment in 2012 was the approval of the two new-generation insulins Tresiba® (insulin degludec) and Ryzodeg® (insulin degludec/insulin aspart) in Japan and Mexico as well as in the EU in January 2013, alongside the FDA Advisory Committee’s positive votes on the two products in the US. Also in biopharmaceuticals, important headway was made. For the marketed product for haemophilia with inhibitors, NovoSeven®, marketing authorisations for a new administration system for intravenous infusion were obtained in both the EU and the US. Sustainable growth wins recognition In 2012 Novo Nordisk was named the ‘most sustainable company on Earth,’ earning a number one position in the Global 100 ranking based on a rigorous benchmark analysis on a set of performance indicators across all three bottom lines. This recognition was one of several during the year in which Novo Nordisk could also mark its 20 years in the business of sustainability. The number one priority is the social responsibility towards the patients who rely on Novo Nordisk’s products. The company estimates that it provides therapeutic treatments for approximately 23 million people with diabetes worldwide. Of the 371 million people with diabetes, it is known that a large proportion is undiagnosed. Therefore, Novo Nordisk is determined to help close the gap between health needs and healthcare and has established a goal of reaching an estimated 40 million patients with medical care by 2020. For more information, please see Novo Nordisk’s Annual Report 2012 at novonordisk.com/annualreport Strong sales growth and significant progress in the pipeline 2012 was a positive year for Novo Nordisk with strong sales growth, robust performance against long-term financial and social targets, and significant progress in the clinical development pipeline. Sales increased by 18% measured in Danish kroner and by 12% in local currencies in 2012 compared to 2011. Operating profit increased by 32% to DKK 29,474 million. In local currencies, the growth was 20%. Sales of diabetes care products increased by 21% measured in Danish kroner to DKK 60,887 million and by 15% in local currencies. Novo Nordisk is the world leader in diabetes care and now holds a global value market share of 26% compared to 24% at the same time the year before. The market has been growing by around 10% annually in recent years. Of this global market, insulin 48

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Novozymes A/S Novozymes is the world leader in bioinnovation and produces industrial enzymes, microorganisms and biopharmaceutical ingredients. The company provides business-to-business biological solutions used in the manufacture of numerous products in industries such as household care, bioenergy and agriculture. Enzyme technologies generally simplify and make customers’ production processes more efficient; they typically replace conventional chemicals and minimize environmental impact. Novozymes’ biosolutions enable its customers to save energy and raw materials, and reduce waste. In 2012 alone, the worldwide application of Novozymes’ products helped its customers reduce their CO2 emissions by an estimated 48 million tons. Solid earnings growth in 2012 Even in a challenging global economy, Novozymes was able to deliver on both sales and earnings expectations in 2012. EBIT and net profit grew strongly, but organic sales growth was challenged. Total sales in 2012 were DKK 11,234 million, an increase of 7% compared with 2011. Exchange rates impacted sales positively, and sales in LCY were up by 3%. Acquisitions and divestments had a minor negative net impact on sales growth, and sales grew by 4% organically. EBIT grew by 17% to DKK 2,745 million, up from DKK 2,340 million in 2011. The EBIT margin was 24.4% in 2012, an increase of 2.1 percentage points compared with 2011. All sustainability targets except one were met. Novozymes received a Sector Leader position in the Dow Jones Sustainability Indexes 2012 and was awarded a Gold Class rating by the RobecoSAM investment group in its 2013 Sustainability Yearbook. Household care enzymes and microorganisms largest growth contributors Enzyme Business sales were DKK 10,163 million, up by 7% compared with 2011. The strong sales growth within Household Care Enzymes, 14% in DKK, was driven by a continued increase in penetration of enzymes across detergent tiers, as well as sales to emerging markets. The global market for industrial enzymes grew by an estimated 7% to DKK 21 billion in 2012. Novozymes retained its market share at 47%. BioBusiness sales were DKK 1,071 million, up by 5% compared with 2011. Microorganisms sales to the BioAg industry were the strongest growth driver in 2012 as a result of positive sales developments in Latin America, Europe and Asia. Focus on partnerships 2012 was a strategically important year for Novozymes as the company entered into a record number of partnerships with leading global companies, including Syngenta, Beta Renewables and BASF. The ability to foster close partner and customer relationships has long been regarded as a competitive advantage, enabling Novozymes to reduce business complexity, share knowledge and align interests. Change in leadership The Board of Directors of Novozymes has appointed Peder Holk Nielsen as President and Chief Executive Officer, effective April 1, 2013. Mr. Nielsen will replace the current President and CEO, Steen Riisgaard, who after 12 years as CEO and 33 years in Novozymes and Novo Industri/Novo Nordisk steps down according to plan. Novozymes' risk profile Novozymes has identified risks relating to the market, customers, and environmental and social aspects, among other things, and has implemented measures to limit these. For example, a significant proportion of Novozymes’ raw materials is derived from agricultural produce, and fluctuations in prices for these commodities will therefore affect the cost of goods sold. Novozymes seeks to reduce the risk of a negative impact on costs by optimizing the production process, for example by using gene technology, and by ensuring the greatest possible flexibility in the use of raw materials. Due to Novozymes' international operations, the income statement and balance sheet are exposed to a number of financial risk factors. Financial risks are managed centrally for the entire Group. Financial instruments are used to hedge existing assets and liabilities, and expected future n

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NOVO AN NUA L R E P O RT 2 0 12 / THE TE A M The team Tiba Aynechi Principal Novo Ventures (US) Inc.* Scott Beardsley Partner Novo Ventures (US) Inc.* Peter Bisgaard Partner Novo Ventures (US) Inc.* Johan Brønnum-Schou Investment Director Finance Søren Carlsen Managing Partner Ventures / Seeds Thorkil Kastberg Christensen CFO Finance Stephan Christgau Investment Director Seeds Kim L. Dueholm Partner Ventures Thomas Dyrberg Senior Partner Ventures Martin Edwards Senior Partner Ventures Hanne Falk Estrup Administrative Coordinator Finance Henrik Gürtler CEO Management Casper Tind Hansen Principal Ventures Inge Hoffmann Personal Assistant Management Morten Beck Jørgensen Investment Director Finance Heather Ludvigsen Venture Auditor Ventures 50

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Heath Lukatch Partner Novo Ventures (US) Inc.* Nanna L. Lüneborg Principal Seeds Max Løwe Controller Finance Dorte Barlebo Madsen HR Director Finance Berit Mikkelsen Coordinator Seeds Peter Moldt Partner Novo Ventures (US) Inc.* Søren Møller Managing Investment Director Seeds Jack B. Nielsen Partner Ventures Lone Penby Venture Coordinator Ventures Birgitta Ravn-Holm Executive Assistant Management Henrijette Richter Investment Director Seeds Dorrit Ryd IT Manager Finance Jørgen Rønnow General Counsel Finance Susanne Schou Administrative Coordinator Growth Equity Michael Shalmi Senior Partner Growth Equity Bobby Soni Principal Seeds * Novo Ventures (US) Inc. is a separate legal entity that provides certain consultancy Ulrik Spork Managing Partner Growth Equity Nicole Zilveti Office Manager Novo Ventures (US) Inc.* services to Novo A/S, mainly within the area of identifying, analysing and negotiating investment opportunities among life science and biotech companies in the US. They also conduct related follow-up activities, such as board memberships and control and reporting efforts. 51

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NOVO AN NUA L R E P O RT 2 0 12 / AC COUNTS E XTRACTS AccOuNTS, ExTRAcTS The following pages contain extracts of Novo A/S' annual report in accordance with IFRS which has been prepared in Danish and submitted to The Danish Commerce and Companies Agency in a separate document. These extracts differ from IFRS with regard to specifications and layout as only the statement of comprehensive income, balance sheet and cash flow statement have been included. 52

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Cash flow statement 1 January to 31 December 2012 DKK million 10,198 2011 DKK million 4,337 Net profit Gain from sale of shares in Novo Group companies Proceeds from sale of shares in Novo Group companies Purchase of shares in associates Sale of shares relating to life science investments Purchase of shares relating to life science investments Purchase of securities Sale of securities Reversal with no effect on cash flow: Non-cash adjustments of other investments Increase/(decrease) in other provisions Corporation tax Cash flow before change in working capital (4,093) 4,198 (4,171) 604 (1,576) (6,293) 3,657 (2,807) 2,912 0 592 (1,256) (6,849) 6,342 (3,524) (24) 23 (1,001) 336 29 (8) 3,645 Change in working capital: (Increase)/decrease in accounts with affiliated companies (Increase)/decrease in other receivables Increase/(decrease) in other liabilities Cash flow from operating activities 1 (11) 3 (1,008) (4) 87 0 3,728 Financing activities: Dividends paid Cash flow from financing activities 0 0 (1,657) (1,657) Net cash flow (1,008) 2,071 Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 2,106 1,098 35 2,106 53

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NOVO AN NUA L R E P O RT 2 0 12 / AC COUNTS E XTRACTS Statement of comprehensive income 1 January to 31 December 2012 DKK million 6,321 2011 DKK million 4,470 Result from the Novo Nordisk A/S and Novozymes A/S Results from other investments Income from life science investments and securities Costs to life science investments and securities Results from other investments Result from associates Result from investment activities 2,749 (1,264) 1,485 2,438 10,244 1,445 (1,545) (100) 0 4,370 Administration costs Operating profit (43) 10,201 (45) 4,325 Financial income Financial expenses Profit before taxation 11 4 10,211 4,328 Corporation tax Net profit (13) 10,198 9 4,337 Proposed appropriation of net profit: Proposed dividend Retained earnings 1,949 8,249 0 4,337 54

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Balance sheet As per 31 December 2012 DKK million 2011 DKK million Assets Investments in subsidiaries Investments in associates Deferred tax assets Other investments Total non-current assets 3,714 6,506 18 21,967 32,205 3,819 0 24 17,170 21,013 Amounts owed by affiliated companies Other receivables Cash at bank Total current assets Total assets 8 49 1,098 1,155 33,360 8 38 2,106 2,152 23,165 Equity and liabilities Share capital Retained earnings Total equity 500 32,766 33,266 500 22,568 23,068 Other liabilities Total non-current liabilities 2 2 2 2 Trade payables Amounts owed to affiliated companies Tax payables Other liabilities Other provisions Total current liabilities Total liabilities Total equity and liabilities 3 2 28 23 36 92 94 33,360 1 1 11 22 60 95 97 23,165 55

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NOVO AN NUA L R E P O RT 2 0 12 / CORPORATE S OC I A L RE SPONSI B I LITY Corporate Social Responsibility in Novo A/S CSR is an integral part of Novo's value-based governance framework. It consists of four elements, which collectively set the direction for our company: • The Charter for Companies in the Novo Group • Novo's Mission • Novo's Cornerstones • Novo's Investment Strategy In addition to providing overall direction for the company, the framework provides direction for its employees as well as guidance in good business conduct and CSR. The Charter describes the common set of values for companies in the Novo Group. It constitutes the foundation for each company in the Group and acts as a professional framework for Novo Group employees. The Charter will drive the Group's longterm sustainable development and growth and ensure its commitment to continuous improvement and reporting on financial, environmental and social performance. Novo's Mission is to represent the economic interests of the Novo Nordisk Foundation. This includes management of the Foundation's assets, ensuring the Foundation sufficient dividends to cover its grant obligations, and maintaining the Charter for Companies in the Novo Group. Novo's Cornerstones are Insight, Professionalism, Commitment and Trust. These values guide our interactions – internally and externally – and our approach to management. Novo's Investment Strategy sets the guidelines for the allocation of financial resources between our investment areas. It also describes the investment objectives and the governance requirements for each investment area. Novo has four CSR core beliefs. In accordance with Novo's Mission and the Vision of the Novo Nordisk Foundation, these beliefs describe our approach to CSR: • Responsible use of biotechnology in its broadest sense will benefit society at large as well as Novo and its stakeholders. • CSR is a prerequisite for sustainable success and long-term value creation. • CSR will increase transparency, accountability and trust, and thereby improve performance and reduce risk. • CSR will benefit society at large as well as Novo and its stakeholders. To support the governance framework and enable regular reporting and monitoring of performance, Novo has integrated CSR into its general business and investment processes. This ensures value-based governance on a day-to-day basis. Reporting on CSR For 2012, Novo has selected five CSR focus areas. These are consistent with the focus areas in 2011 and considered to be the most important areas in which CSR can impact the company's overall business performance. For each focus area, Novo reports its policies, activities and the effect of these activities. To align our CSR reporting with our overall business performance, Novo re-evaluates and, if necessary, adjusts these issues each year. With its Seeds and Venture investments, Novo helps to translate academic research into viable commercial applications. In addition to our financial commitment, we are actively involved in supporting our portfolio companies in setting up their business. 56

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CSR FOCUS AREAS Responsible investment process WHy IS THIS IMPORTANT POLICIES ACTIVITIES RESULTS Novo's core business is investing. This must be conducted in a socially and environmentally responsible manner. Novo's impact on society depends on how well it deploys its financial resources. Novo wants to be a responsible investor incorporating CSR into all its investment processes. Integrate and document CSR as part of our business and investment processes All new investment opportunities have been screened for potential CSR issues (including bioethical and corporate governance issues). Three investment cases were rejected on this basis. Impact on society through investment activities Novo wants to leave a positive footprint on society. Start new life science companies Invest in life science companies Pay taxes In total for 2012, Novo helped start six new companies and invested DKK 1,577 million in 13 new and 31 existing portfolio companies. More than 20 new drugs and devices originating from Novo portfolio companies are on the market. In 2012 the Novo Group directly and indirectly paid tax amounting to 7.5 DKK billion. Novo collects feedback from stakeholders including annual feedback from board members and co-investors in portfolio companies where relevant and where Novo holds board positions. All of the companies responded. Novo received favourable assessment of the quality of our input as investors and board members. The Novo Group companies, Novo Nordisk and Novozymes, have each performed internal board evaluations. Reputation Reputation is of great importance to Novo. It has an impact on all Novo Group companies as well as on value creation, market value, brand, hiring capacity, etc. Novo is a value-based organisation. It is important to Novo's performance that all employees understand and adhere to Novo's Charter and Cornerstones. Novo's main non-financial operational asset is its employees. To ensure optimal workplace conditions, CSR is part of our management system. Novo wants to be a well reputed company. Act as a responsible shareholder Charter and Cornerstones All employees must know, understand and adhere to the Charter and Cornerstone principles. Monitor that the organisation adheres to the Charter and Cornerstone principles. Novo's Charter: The Novo Group companies (Novo Nordisk and Novozymes) each adhere to the Charter, while the portfolio companies are not opposed to the Charter. Novo's Cornerstones: Each Novo employee has discussed the Cornerstones with his/her manager during their individual Dialogue Discussion. This discussion also includes job description, targets, development plan and working conditions. Employees Novo wants to be a responsible employer. Conduct work place evaluations Novo's annual workplace evaluations includes measuring sick leave and resources/time devoted to training. In 2012, the sick leave was less than 0,9 % of total days worked. External training amounted to 1.3 % of total days worked. 57

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Graphic design: liebling Photos of Novo A/S' Board of Directors and employees: Jon Nordahl Nature photos: Jon Nordahl Denator photo: Jon Nordahl Other photos were kindly made available by the portfolio companies Print: Scanprint 58

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Management Henrik Gürtler, CEO hgu@novo.dk Novo Finance Thorkil Kastberg Christensen, CFO tkc@novo.dk Novo Ventures & Novo Seeds Søren Carlsen, Managing Partner sc@novo.dk Novo Growth Equity Ulrik Spork, Managing Partner us@novo.dk Novo A/S Tuborg Havnevej 19 DK-2900 Hellerup Tel.: +45 3527 6500 Fax: +45 3527 6510 www.novo.dk CVR no.: 24257630