1. Novo Nordisk Novo Nordisk Group 13DichowKasper GodotAlexis Gorgec Senem WoolmoreAshley UsandivarasJuan Human Resource Management

2. Agenda Basic approach Brief overview of Novo Nordisk Why France? Evolving benefits Adapting to the French Environment Translation of Scandinavian Values Some HR Challenges Conclusion Q&A

3. Our Approach Initial contact through Danish headquarters. Contact established with HR Manager for Western Europe. Several meetings and interviews  Senior VP Int’l MarketingJesperHØILAND  Western Europe HRMPatrick PAÏKINE  Product ManagerNille KLÆBEL Data collecting  Company published material  Internet search  Internal documents & working papersApproach Novo Nordisk Why France? Chg benefits AdaptingTranslationChallenges Take away

4. Brief overview of Novo Nordisk In 2003, Worldwide  Turnover: 3,5 Md€ (increase by 5%)  Net Income:675 M€ (increase by 19%)  Employees:18 756 (60% in Denmark) The French subsidiary  Turnover: 312 M€ (2002)  Employees:558 (420 in Chartres)  Head Office in La Defense  1 Plant in Chartres (1 st employer)Approach Novo Nordisk Why France? Chg benefits AdaptingTranslationChallenges Take away

5. Brief overview of Novo Nordisk Product areas  Diabetes care (70%)  Haemostasis management (14%)  Growth hormone therapy (8%)  Hormone replacement therapy (5%)Approach Novo Nordisk Why France? Chg benefits AdaptingTranslationChallenges Take away World leader in Diabetes care

6. History of Novo Nordisk Approach Novo Nordisk Why France? Chg benefits AdaptingTranslationChallenges Take away 1922: August Krogh (Nobel Prize winner in physiology) travels to the US with his wife who suffered from type-2 diabetes. Studies diabetes treatment and was later granted permission to produce insulin in Denmark. 1922: First insulin extracted. 1923: Creation of Nordisk. Harald Pedersen joins to construct machinery for production. 1924: Pedersen resigns after disagreements with Krogh and founds Novo as a direct competitor of Nordisk. 1989: After 65 years of rapid expansion, the two companies merge to create Novo Nordisk. 2000: Demerger of healthcare business, Novo Nordisk, and enzyme business, Novozymes.

7. Why France ? Approach Novo Nordisk Why France? Chg benefits AdaptingTranslationChallenges Take away France was the biggest market Access to large labor force with technical knowledge Expansion outside Denmark Soon other benefits emerged… Tax incentives Price negotiation with French medical authorities In 1959, Nordisk opened a subsidiary in France and the first production facilities outside Denmark.

8. Evolving Benefits Approach Novo Nordisk Why France? Chg benefits AdaptingTranslationChallenges Take away France selected due to large market  Later - easy access to rest of Central Europe Creation of jobs and presence in France has led to stronger negotiation power:  Relations with medical authorities  Within the region (taxation) Acknowledgement of the skilled workforce in France  Large workforce with highly skilled technicians  Though, high cost of labour  Interest in the industry  Provides opportunities for Danish employees

9. Adapting to the French Environment Approach Novo Nordisk Why France? Chg benefits AdaptingTranslationChallenges Take away Learning curve Initially, extensive use of expatriates Still expatriates but dominated by French managers Differences in mentality Language - French is the language of the French subsidiary, though English is the official company language The adoption of the 35-hour working week Introduction of a specific bonus system for the French sales workforce - Jackpot

10. Translation of Scandinavian Values Approach Novo Nordisk Why France? Chg benefits AdaptingTranslationChallenges Take away Corporate values  ” Being there…”, multiple stakeholder approach, ethics, human values Novo Nordisk perceived as Danish/Scandinavian  Positive perception, high ethic standards Mentality: democracy vs. discipline  Different approaches… Informality  Informal working environment (e.g., ”vous” is never used) Design of premises  Danish furniture and interior design  (light wood, open offices)

11. Some HR challenges Approach Novo Nordisk Why France? Chg benefits AdaptingTranslationChallenges Take away Implementation of the 35 hour week  Immediate negotiations with unions  First pharmaceutical company to reach agreement  Improved production by introducing flexible work schedules  Vacation of 17 days per year instead of 22 days  Tax subsidies Implementation of corporate values  Different perception - management and employees Training  Expensive external and internal training, Novo Learn, translation into French Performance appraisal  Cultural differences

12. ConclusionsApproach Novo Nordisk Why France? Chg benefits AdaptingTranslationChallenges Take away  Initial reasons for establishment in France have evolved over time, and new benefits have been developed  Benefits from skilled workforce and access to rest of Europe  Overall adaptation to the French environment  Successful implementation of the 35 hour week  Effective use of bargaining power with national medical authorities regional and regional tax authorities  Some considerable differences in HRM in France  Not a ”full implementation” of corporate values and company procedures

13. Q&A