EDITING SLIDES IN THE NOVOZYMES TEMPLATE · 1. 9M 2014 presentation 2. Novozymes Overview 3. Strategy 4. Segmental Overview Household Care Food & Beverages Bioenergy Agriculture &

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ROADSHOW PRESENTATION 9M 2014

October 23, 2014

Table of Contents

2

Table of Contents

1. 9M 2014 presentation

2. Novozymes Overview

3. Strategy

4. Segmental Overview

Household Care

Food & Beverages

Bioenergy

Agriculture & Feed

Technical & Pharma

5. Sustainability

6. Financial Review

2

3-9

10-16

17-25

26

27-30

31-32

33-36

37-42

43-45

46-50

50-57

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QUARTERLY RESULTS • OVERVIEW • STRATEGY • SEGMENTAL OVERVIEW • SUSTAINABILITY • FINANCIAL REVIEW

6 1

QUARTERLY RESULTS


QUARTERLY RESULTS • NOVOZYMES OVERVIEW • STRATEGY • SEGMENTAL OVERVIEW • SUSTAINABILITY • FINANCIAL REVIEW

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9M 2014 Summary

2.074 2.198

2.541

24,6% 25,0%

27,4%

12%

14%

16%

18%

20%

22%

24%

26%

28%

30%

9M'2012 9M'2013 9M'2014

1.500

2.000

2.500

3.000

EBIT and EBIT margin 9M 2012 – 9M 2014

8.423

8.806

9.278

7% 6%

8%

0%

2%

4%

6%

8%

10%

9M'2012 9M'2013 9M'2014

8.000

8.400

8.800

9.200

9.600

Sales and organic growth 9M 2012 – 9M 2014

Sales growth on track

• 8% organic sales growth

• 3 %-points negative impact from currencies

• Sales growth as expected in Q3 with 9% organic sales growth

Continued strong financial performance

• EBIT: +16% driven by multiple factors: One-time effect from The BioAg Alliance, Other Operating income, favorable product mix changes, lower raw-mat costs and productivity improvements

• EBIT margin up by 2.4 %-points, half from the BioAg Alliance agreement, and half from underlying improvement

• DKK 4,319 million in free cash flow bef. acquisitions

FY-2014 Profit outlook increased

• EBIT: +14-15%

• EBIT margin of 26-27%

• Organic sales growth: +7-8% (~6% in DKK)

• Higher Cash flow and ROIC

+6%

+16%

DKKm

DKKm


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Sales & Markets

9M 2014 sales: DKK +5%, LCY +8%, organic +8%

Q3 2014 sales: DKK +8%, LCY +9%, organic +9%

601

1.286

1.369

2.394

3.156

629

1.306

1.630

2.451

3.262

Technical &

Pharma

Agriculture &

Feed

Bioenergy

Food &

Beverages

Household

Care

Sales by industry, DKKm

9M 2014 9M 2013

• Household Care: Sales as expected; Q3 growth up from Q2 due to innovation and growth in emerging markets. Developed markets remain dynamic.

+19%/+23%

+2%/+5%

+3%/+5%

DKK growth/LCY growth

+5%/+6%

+2%/+6%

• Food & Beverages: Growth across all main segments except starch conversion. Healthy concepts and baking were main growth drivers.

• Bioenergy: New innovation continued good performance and increased penetration on top of a strong U.S. ethanol production up ~10% in 2014.

• Agriculture & Feed: Strong sales development in feed, especially in the Americas. BioAg sales flat organically - still impacted negatively by timing.

• Technical & Pharma: Sales of pharma enzymes were the main growth driver. Other technical applications roughly flat.


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Business Development Update

• Novozymes recognized as world

leader for corporate action on

climate change by The Carbon

Disclosure Project (CDP), the

international NGO that drives

sustainable economies.

• Top 3 percentile in the Dow Jones

Sustainability index in new category

of chemicals.

Positive developments within Biomass conversion

• POET-DSM, Abengoa and Granbio started production in Q3.

• DuPont and Raizen expected to start up in Q4, 2014.

• New plant announced by EnergoChemica in Slovakia.

2014

2014

Under construction

In operation

2014


http://willwang2012.company.weiku.com/

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R&D Activity update

Ramp-up in BioAg R&D

• Good progress in the collaboration

with Monsanto.

• 170.000 field tests progressing as

planned.

• +80 people hired for new

Novozymes BioAg research unit in

North Carolina.

New innovation in Q3

• Household Care: Medley®; a blended formulation that enables

easier application of more enzymes. Medley is targeted toward

small and medium producers.

Medley® Essential

Medley® Pure

Medley®

Brilliant

Whiteness, color & fabric care

Stain removal+

Stain removal

Removes most common stains efficiently

Enhanced performance boost with extra stain removal

The complete suite of enzymes for superior stain removal and fabric care


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9M 2014 Financial Performance

Strong financial performance in 9M’14

• +1 %-point underlying improvement in gross margin despite currency headwind due to continued productivity improvements, lower raw material costs and a favorable product mix

• ~1 %-point underlying EBIT margin improvement thanks to higher gross margin and higher other operating income

• Strong cash flow generation from The BioAg Alliance, higher profit, lower CAPEX and lower NWC ratio

2014 profit outlook increased

• Organic sales growth outlook narrowed in middle of previous range

• Higher EBIT and Net Profit growth due to favorable currency development and underlying performance

• Free cash flow increased by DKK 4-500 million due to lowered CAPEX, higher profit and lower NWC ratio

• ROIC outlook increased on the back of higher profit

Key financials Realized 9M 2014

2014 Outlook Oct. 23

2014 Outlook Aug. 14

Sales growth, DKK +5% ~6% 4-6%

Sales growth, LCY +8% ~7% 6-9%

Sales growth, org. +8% 7-8% 6-9%

EBIT growth +16% 14-15% 9-11%

EBIT margin 27.4% 26-27% ~26%

Net profit growth 17% 13-14% 9-11%

Net investments excl. acq. and impact from The BioAg Alliance, DKKm

355 600-700 700-800

Free cash flow before acq., DKKm

4,319 ~4,300 3,800-3,900

ROIC incl. goodwill 24.5% 22-23% ~22%


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6

INVESTOR PRESENTATION OVERVIEW


2


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Novozymes – The World Leader in Bioinnovation

Household Care

Food & Beverages

Bioenergy Agriculture

& Feed Technical &

Pharma

Who are we?

*A+B shares August, 2014

Founded 1925

Listed 2000

Ticker NZYM B

Exchange Copenhagen

Market Cap* US$ 15bn

Long-term targets: > 10% organic sales growth from 2015 > 24% EBIT margin > 22% ROIC

Global: +6,000 employees, 700 products in 140 countries

R&D intensive: ~7,000 patents, 13-14% of sales spent on R&D

Profitable: $2.1bn/€1.5bn in sales and 24.7% EBIT margin in 2013

Majority owner Novo A/S controls 25.9% of the capital and 70.5% of the votes


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Experienced Leadership Team Exploring Growth & Value Creation Opportunities

11

Per Falholt Andrew Fordyce Thomas Nagy

Peder Holk Nielsen Benny Loft

Thomas Videbæk

Peder Holk Nielsen President and CEO Novozymes since 1984 Background: Chemical Engineering

Benny D. Loft Executive Vice President, CFO and Corporate Functions Novozymes since 1998 Background: State-authorized public accountant

Per Falholt Executive Vice President, Research and Development Novozymes since 1984 Background: Chemical engineering

Andrew Fordyce Executive Vice President, Business Operations Novozymes since 1993 Background: Chemical Engineering

Thomas Nagy Executive Vice President, Supply Operations Novozymes since 1986 Background: Chemical Engineering

Thomas Videbæk Executive Vice President, Business Development Novozymes since 1988 Background: Chemical Engineering


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Delivering solutions from nature: food applications, detergents, pharmaceutical products, the energy sector and countless other applications

Helping companies become more efficient: energy efficiency, saving raw materials, reducing waste and replacing chemicals

This unique approach leads to: “more with less” higher quality, lower costs, better yields and a better environment

12

Delivering Tomorrow’s Solutions Today


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Bioenergy

• Corn ethanol • Cellulosic biofuels

• Unique biotech-focused business with a strong legacy of delivering growth, earnings, and cash flow

• ~13-14% of annual sales invested in R&D

• Global provider of enzymes to all market segments creates global market leader position

• Leveraging competencies across segments accelerates pace of innovation, reduces competition and creates

high barriers to entry

Uniquely Diversified Group - Creates Synergies and New Opportunities

Household Care

• Laundry & Dishwasher detergents

• Cleaning products

Food & Beverages

• Baking • Starch to syrups • Brewing & Alcohol • Healthy concepts

Agriculture & Feed

• Animal feed • BioAgriculture

Technical & Pharma

• Textile & Leather • Pulp & Paper • Wastewater • Pharma ingredients

13

16% 36% 27% 14% 7%


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• Sales FY 2013 of DKK 11.7 bn (USD ~ 2.1 bn)

• Strong profitability, 24.7% in EBIT margin FY 2013

• ROIC of 20% FY 2013

Diversification in Revenue Streams Underpins the Company’s Strong Financial Position

2013 Sales by geography

2013 Sales by industry

Europe,

Middle

East and

Africa

38%

North

America

33%

Asia

Pacific

19%

Latin

America

10%

14

+6%/+7%

+4%/+7%

+2%/+6%

+8%/+17%

DKK growth/LCY growth

4.222

3.190

1.909

1.668

757

Household

Care

Food &

Beverages

Bioenergy

Agriculture &

Feed

Technical &

Pharma

36%

27%

16%

14%

7%

Percentage of sales:

+7%/+10%

DKK growth/ LCY growth DKKm

+3%/+8%

+9%/+13%

0%/+3%

+6%/+9%


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Global Production and R&D Setup

Curitiba, Brazil Enzyme production BioAg production R&D

Bangalore, India Enzyme production R&D

Tokyo, Japan R&D

Bagsværd, Denmark Headquarters R&D Pilot plant Kalundborg, Denmark Enzyme production

Nottingham, England Biopharma production

(Albumin) R&D

Raleigh, North Carolina Enzyme production R&D Salem, Virginia • Microorganisms production

Pilar, Argentina BioAg production

Davis, California

R&D

Saskatoon, Canada BioAg production R&D

Beijing, China R&D Tianjin, China Enzyme production Biopharma production

(hyaluronic acid) Shanghai, China Enzyme production Shandong, China Innovation centre

15

Blair, Nebraska

Enzyme production

Ottawa, Canada Enzyme production

Milwaukee, Wisconsin BioAg production

Houston, Texas

BioAg production

Shenyang, China Microorganisms

production


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INVESTOR PRESENTATION STRATEGY



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Novozymes

48%

Genencor

(DuPont) 20%

DSM

6%

Others and

captive 26%

Undisputed Market Leader Expanding Enzyme Application

Market potential*

Global enzyme market value 2013: USD ~ 3.8bn

Current enzyme market USD ~ 3.8bn

Untapped market Multi-billion (US$)

2000: USD ~ 2.0bn

2013: USD ~ 3.8bn

Novozymes 42%

Novozymes 48% Rest of

market

58%

Rest of market

52%

Rules of competition dictated by innovation

*Global markets for chemicals, food ingredients, feed additives, etc. 17

Global enzyme market value:


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Multiple Drivers Create a Sustainable Business with Significant Growth Potential

18

Drivers

• Energy efficiency

• Cost/performance

• Waste reduction

• Sustainability

• Scarce raw materials

• Replacing chemicals

Ambition

Long-term financial targets: > 10% sales growth

from 2015

> 24% EBIT margin

> 22% ROIC


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• History shows potential to grow 10% from a diversified set of industries, but not consistently

• Consistent performance in existing business will lay foundation for +10%

• Growth platforms will add layers of growth to enable +10%

• All 5 sales areas have the potential to deliver +10% growth within the 5-year period

How Do We Get To +10% from 2015?

Historic performance & size of areas, 2013 DKKm Future growth to come from

757

1.668

1.909

3.190

4.222

Technical &

Pharma

Agriculture &

Feed

Bioenergy

Food &

Beverages

Household Care

Established businesses • Household Care • 1G bioenergy • Food & Beverages + Technical

+

1%

6%

5%

5%

9%

2008-2013 Organic CAGR:

Gro

wth

pla

tform

s

Transformational opportunities

Biomass Conversion

BioAg

Growth contributors

Animal Health & Nutrition

Biopharma


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• Achieving growth through R&D investment remains a fundamental priority

• >50 new product in the last 5 years, ~100 active projects in current portfolio

• R&D investment-reaping rewards with increasing diverse revenue streams

1. Drive Innovation – Because Innovation Drives Top-Line Growth

R&D Expenditure 2009−2013 (DKK million)

2000−2013 Sales CAGR of ~7%

1.207 1.360

1.464 1.527 1.528

2009 2010 2011 2012 2013

10%

12%

14%

16%

18%

20%

22%

24%

26%

0

2.000

4.000

6.000

8.000

10.000

12.000

14.000

Sales DKKm EBIT margin R&D/Sales ROIC

20


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2. Expand Opportunities; Developing new technology and business platforms

Continued development in our technology base…

…creates opportunities to develop new business platform

Molecular

biology

Strain development using

protein engineering, genetic

modification, DNA sequencing,

etc.

Bio-informatics

& Systems biology

Application of computer

algorithms in the

computational discovery of

enzymes in DNA databases

Screening systems

Application of high-throughput

robotics to find the best

enzyme candidates

Industrial-scale

fermentation

Production of enzymes and

proteins whilst continuously

optimizing and improving

yields

21

Biomass conversion

Bio-Agriculture

Biopharma

Animal Health & Nutrition

Emerging platforms


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Innovation clusters

• Customers

• Academia

• Radical ideas

• Internal ideas

Emerging platforms

• Undisclosed projects

Growth platforms

• Biomass conversion

• BioAg

• Animal Health & Nutrition

• Biopharma

• Responsible for new business areas and Novozymes’ entire pipeline prioritization

• Close coordination on pipeline, resource allocation and customers

• Business development organization to cater for alternative business models and new business areas

• Innovation & business development crucial in all industries Novozymes serves

Business Development Nurtures Tomorrow’s Business for Novozymes

Established businesses: • HHC • F&B • 1G fuel • Technical

Business Development

Business Operations

M&A + partnerships


22

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RAW MATERIALS

FERMENTATION

MICRO- ORGANISMS

PURIFICATION

FORMULATION

ENZYMES

Improve production strain Ability to produce more enzymes per m3 fermentation tank

through genetic engineering of host organism

Optimize industrial production • Process optimization • Equipment optimization • Input optimization

Improve enzyme efficacy Protein engineering of

enzymes improves efficacy. Customers buy efficacy, not volume

• Focused on improving margins through sophisticated technological solutions

• Achieved sales CAGR of 7% since 2000 with improving margins

• Roughly 20% of the R&D spend goes into productivity improvements

3. Enzyme Technology Improves Profitability

3 ways to gain productivity improvements

23

1

3

2


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0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

Cash for growth and shareholders

Dividends Capex Acquisitions Buybacks

24

Cash Generation, Use, Capex and Future Priorities – DKK billion

CAPEX 2002-2013 DK & new facilities

2014-2018; DKK +15bn* in operational cash flow to be invested in:

1. Innovation

2. Business development

3. Acquisitions

4. CAPEX as needed

5. Return to shareholders

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

Cash generation has tracked EBIT

EBIT Operational cash flow1 2

3 4

* Estimated as a simple progression of current operational cash flow with 10% growth p.a.


2002-04

2005-07

2011-13

2008-10

LATAM

EMEA

NA

APAC

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INVESTOR PRESENTATION SEGMENTAL OVERVIEW



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Household Care (36% of 2013 sales)

Household Care Overview

Household Care Sales

Application Laundry & dishwasher detergents Microbials for cleaning solutions

Competitors Genencor (Dupont)

Growth Drivers

Performance claims / GDP & Population / Sustainability / Replacement of

traditional chemicals / Oil price volatility

Growth Barriers

Sustained low oil price / Economical slowdown / Consumer preferences &

behavior / Competition

Recent Launches

Medley®, Evity® plaform for laundry, Blaze Evity for ADW, Cellusoft@LT,

Lipoclean®, Xpect®

2.853

3.324 3.514

3.973

4.222

4%

13% 7% 11%

9%

0%

5%

10%

15%

20%

25%

30%

35%

40%

-

250

500

750

1.000

1.250

1.500

1.750

2.000

2.250

2.500

2.750

3.000

3.250

3.500

3.750

4.000

4.250

4.500

2009 2010 2011 2012 2013

Sales DKK LCY growth


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Technology Adoption – Novozymes Goes to Market With a Unique and Synergistic Enzyme System

Source: NZ Technical

Performance

Multi- enzyme solution

Enzyme synergy

Protease

Proteins

• Sebum

• Blood

• Grass

• Milk

• Egg

• Meat

Amylase

Starches

• Wheat

• Corn

• Potato

• Sauces

• Processed

foods

Lipase

Natural

fats/oils

• Oil/lard

• Sebum

• Personal

care

• Lotions

Cellulase

Cellulose and

beta-glucan

• Cereals

• Baby food

• Fabric and

color care

• Whiteness

Mannanase

Thickeners

• Processed

foods

• Chocolate

and drinks

• Ice-cream

• Lotions

Pectinase

Pectin

• Fruits

• Fruit/jam stains

• Veg. stains

• Yoghurt

Sum


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Future

Enzymes 0-20% of raw material costs

Enzymes >10% of raw materials globally

Today

Enzymes 0-12% of raw material costs

Enzymes 3-5% of raw materials globally

28

Source: Agglomerations and Novozymes estimates

Surfactants 37%

Builders 34%

Enzymes 6%

Others 23%

Raw mat. cost distribution in top-tier powder detergent

Surfactants 68%

Enzymes 12%

Others 12%

Raw mat. cost distribution in top-tier liquid detergent


Enzyme Systems are an Important, Yet Still Relatively Low Part of Detergent Raw Material Costs

Builders 8%

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Three Game Plans Drive Growth in Household Care

Time

Enzyme inclusion

1

3

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2000

2005

2010

2015

Share of detergents with enzymes

0

100

200

300

400

500

600

700

800

900

1000

2000

2002

2004

2006

2008

2010

2012

# of detergents containing enzymes launched globally

Europe

LATAM

AP

MEA

NA

Penetrate new brands

Move brands to higher inclusion formulations

• Serving ~300 customers across brands and tiers

• Enzymes included in +100 countries

• +15,000 full-scale wash tests conducted per year

2

Drive innovation and set new standards

• +50 years experience

• 6 enzyme classes, 23 product lines

• 9 new products (non-exclusive) and 2 technology platforms launched within last 5 years

• R&D partnerships with global leaders

• Received innovation awards from P&G, Unilever, Henkel within last 3 years

• Strong patent portfolio across enzymes, basic technology, formulation and production

Drive innovation & new standards

Move brands to higher enzyme inclusion

Penetrate new brands


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Food & Beverages (27% of 2013 sales)

Food & Beverages Overview

Food & Beverages Sales

Application Baking / Starch conversion / Brewing / Beverage alcohol / Healthy concepts

Competitors DSM, Genencor (Dupont), AB Enzymes

Growth drivers

BAKING: GDP / Convenience / Whole grain breads / Healthy foods / Raw

material replacement BREWING: Alternative raw materials /

Process Streamlining / Branding / Emerging markets / Sustainability

OTHERS: Healthy foods & concepts / Yield improvement / High sugar price

Growth barriers

BAKING: Competition BREWING: Enduring low malt prices / Changing legislations about min. malt content & alcohol taxation / Brewing

traditions – OTHERS: Lack of regulations

Recent Launches

Sensea® Attenuzyme® Novamyl® Pro Panazea® Opticake® Fresh

2.466

2.850 3.033

3.186 3.190

0%

11%

8%

1%

3%

0%

5%

10%

15%

20%

25%

30%

35%

40%

-

250

500

750

1.000

1.250

1.500

1.750

2.000

2.250

2.500

2.750

3.000

3.250

3.500

3.750

4.000

2009 2010 2011 2012 2013



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Fill and Manage the Pipeline - Enzyme Innovation to the Food Industry

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New economies and urbanization

Health & Wellbeing Convenience Informed

consumption

Reinforce customers’ brand

• Claims

• Safety

• Sustainability

Reduce costs

• Process streamlining

• Improve Raw mat utilization

Apply regionally

• Enzyme applications vary with geography


31

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Bioenergy (16% of 2013 sales)

Bioenergy Overview

Bioenergy Sales

Application Corn ethanol / Biomass conversion

Competitors Genencor (Dupont), Captive producers

Growth drivers

Sustainability & CO2 / High oil price / Raw material prices / Political mandate /

Energy security / Rural development

Growth barriers

Sustained low oil price / Competing technologies / Lack of infrastructure /

Blend wall & ILUC Public debate / Loss of political support

Recent launches

Avantec® , Olexa® Spirizyme® Achieve

1.480

1.846 1.782 1.748

1.909

3%

19%

1%

-9%

13%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

-

250

500

750

1.000

1.250

1.500

1.750

2.000

2.250

2.500

2009 2010 2011 2012 2013



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R&D Activity Update: Bioenergy Strategy Overview

Grain Ethanol (1G) - Drive more yield

Biomass Conversion (2G) - Enable commercialization

New Opportunities - Explore biodiesel and sugar cane

• Recent introductions delivered significant yield and value capture

• More innovation to unlock higher yields expected over the coming period

• Strong focus on delivering CTec4you solutions for different pre-treatment processes

• Partnering to optimize total value chain and drive down total production costs

• Enzymatic Biodiesel – Exploring cleaner and cheaper concept

• Exploring solutions for sugar cane

40

60

80

100

120

140

160

2005 2010 2015 2020

Enzyme Developments

Enzyme Developments

Enzyme and ProcessDevelopments

Total production cost development 2013 Global biofuels production, ~30 bn gallons*

* Sources: RFA, F.O.Licht, & Oilworld.de

Other ethanol 2

Biodiesel 7

Sugar cane ethanol 7

Corn ethanol 14

2.70 gal/bu

2.85 gal/bu

Eth

anol yie

ld p

er

bushel of

corn

3.00 gal/bu

Avantec®, Spirizyme Achieve® &

Olexa®

New Innovation

2012-2014 2014-2016


Raw material Production process

Enzymes

Enzymes

Enzymes

Sugarcane

Classical corn

Raw corn starch hydrolysis

Biomass

Other crops

Ethanol

Butanol

Biogas

Polypropylene

Acrylic acid

Etc.

Co-products DDGS; Feed,

Corn oil

Co-products Bagasse; Energy

Co-products DDGS; Feed

Co-products * Lignin; Energy,

biochemical

End product

Extraction

Milling

Milling

Collection

Cooking

Cooking Cooking

Pretreatment

Ferm

enta

ble

sugar

*In the US Department of Energy Biomass-model the lignin residue is burned to power the production plant

Milling Enzymes

Co-products DDGS; Feed,

Corn oil


Production of Biofuels and Beyond

34

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• The number of projects choosing enzymatic hydrolysis conversion has increased from 7 in 2008 to 26 in 2013

• In addition to projects publicly announced, there is a significantly larger pipeline of projects in the making

• The market has shifted from a U.S. play to a global opportunity

• Important to note that not all facilities on the drawing board will make it commercially

Many More Potential Customers Are Interested in Biomass Conversion Today Than 5 Years Ago

Commercial projects by region, 2013

2 - Crescentino - Maabjerg

2 - MYBiomass - Sabah

9 - Cofco/Sinopec - SQ - Datang - Dacheng - HNTG - Longlive - ZTE - Stategrid - Jilin Fuel

7 - POET-DSM - DuPont - Project Alpha - Fiberight - Abengoa - Canergy - Greenfield

6 - GranBio - Raizen - OAI - Rhodia - TMO - Colbiocel

Commercial projects: Projects either completed, under construction or publicly announced using enzymatic hydrolysis


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Agriculture & Feed (14% of 2013 sales)

Agriculture & Feed Overview

Agriculture & Feed Sales

Application

FEED: Monogastric animals / Substituting phosphate / Enhancing protein uptake

AGRICULTURE: Agricultural Biologicals, innoculants etc./ Aquaculture

Competitors FEED: Genencor (Dupont)

AGRICULTURE: BASF, Bayer CropScience and smaller regional players

Growth drivers

FEED: Feed to meat conversion / Phosphate prices / Grain prices / Growing

meat consumption / Regulatory requirements AGRICULTURE: Yield enhancement / High fertilizer prices /

High Ag commodity prices /

Growth barriers

FEED: Low feed ingredient prices / Competitive pressure / Lower meat

consumption AGRICULTURE: Low raw material prices / Small but emerging field

Recent launches

Ronozyme® HiPhos® , Ronozyme® ProAct®

MET52®, Taegro®

872 956

1.371

1.617 1.668

1% 3%

48%

14%

8%

-2%

8%

18%

28%

38%

48%

58%

68%

78%

88%

-

250

500

750

1.000

1.250

1.500

1.750

2.000

2009 2010 2011 2012 2013



BASIC LAYOUT


guide

AG BIOLOGICALS MARKET1

MARKET SEGMENTED BY PRODUCT CLASS

2/3rd Microbials

Microbial Pesticides

Microbial Inoculants

Beneficial Insects

Biochemical

Other

AG MICROBIALS OPPORTUNITY

EXAMPLE: TRADITIONAL CHEMICALS & PESTICIDES2

VS. AG MICROBIALS MARKET1

Industry growth driven by increasing demand for new sustainable options

AG MICROBIALS MARKET1

MARKET SEGMENTED BY CROP

Fruits and Vegetables

Soybeans

Cotton

Corn

Rice

Other Crops

Annual Growth Mid-Teens CAGR

2013 Estimated Sales $2.6B

SALES (

USD

) There’s significant opportunity for ag Microbial market expansion:

Pesticides ($54 billion)

Nitrogen

Phosphate

Potassium

Biopesticides

Inoculants

~$1.8 billion

~$240 billion

Ferti

lizers

($

18

3 b

illio

n)

• Microbials can be a range of products that can be complementary to, or replace, traditional chemistry options

• Today the ag microbial market is approximately $1.8 billion in sales, while traditional chemicals and pesticides total approximately $240 billion

Today, majority of ag microbials are used in the fruits and vegetables market, we see significant opportunity in broad acre field crops like corn, soy, cotton and canola

Opportunity: Core Crops

1. Monsanto estimates of Ag Biologicals industry based on a combination of research data from DunhamTrimmer, Agrow, MarketsandMarkets, Frost & Sullivan, Boston Consulting Group, BCC Research, Philips McDougall, Global Industry Analysts 2. MarketLine and Phillips McDougal market data

TRADITIONAL CHEMICALS & PESTICIDES AG MICROBIALS


37

Agricultural Biologicals is a Niche Market with Significant Opportunities

BASIC LAYOUT


guide

Combination of Novozymes and Monsanto Capabilities Establishes Industry's Most Advanced Microbial Platform

ESTABLISHED MICROBIAL LEADERSHIP

• World leader in microbial technology; discovery, development and production

• Existing microbial business including stand-alone pipeline, extensive microbial libraries and intellectual property

• Current commercial portfolio including products and infrastructure

INDUSTRY-LEADING R&D CAPABILITY AND COMMERCIAL FOOTPRINT

• Industry-leading R&D network that allows for scaled testing and development

• Complementary microbial assets including extensive microbial libraries and intellectual property

• Global commercial reach across crops, brands and geographies to drive commercial opportunity

+


38

The BioAg Alliance

BASIC LAYOUT


guide 39

Power of Microbial Technology: Novozymes’ Proven Microbial Portfolio

Nutrient efficiency

Inoculants

Biofungicides Bioinsecticides Nitrogen fixation

Enhances nutrient efficiency of key nutrients and plant health incl. phosphate

Nitrogen-fixating inoculants

Provides disease control for fruits and vegetables

Provides insect control for fruits and vegetables as well as turf and ornamentals

Actinovate® MET52® JumpStart® Torque®, QuickRoots® Ratchet®

TagTeam®, Cell-Tech®, Optimize®

1

CURRENT PRODUCT PORTFOLIO


Biocontrol products

2

Microorganism applied to the seed before planting

The active ingredient, a soil fungus, grows on the roots and solubilizes the residual soil phosphate, unavailable for plant use

Yield increases due to superior nutrient uptake in plant’s early life stage

CASE: JUMPSTART® CASE: MET52® - mites on strawberry

TREATED UNTREATED

BASIC LAYOUT


guide

Bridging BioAg Revenue in The BioAg Alliance

COGS

Contribution to serve

R&D, Adm. & Profit

Sales & distribution

2013 revenue before Alliance

Monsanto share of revenue to serve Sales &

Distribution, R&D & profit

COGS


R&D, Adm. & Profit

In Alliance

Deferred income

COGS


R&D, Adm. & Profit

+ Deferred income

Deferred income

COGS


R&D, Adm. & Profit

2014 revenue

*excl. growth

Gap to 2013

revenue

Deferred income counters some of lost revenue and gross profit R&D investment will determine absolute EBIT contribution


40

BASIC LAYOUT


guide 41

Attractive Value Propositions in Animal Feed

Phytase – phosphate • Only 3-30%* of phosphate in feed is available to the animal

• Ronozyme NP® releases half of the phosphate bound – Ronozyme HiPhos® releases nearly all of it

• Farmers can save 25-100%* of added mineral phosphate

• Significant reduction in phosphorous excretion from animals

ProAct® – protein • Maximizing protein utilization and improving nutritional value

• Targets nearly all protein sources in feed

• Improves protein digestibility by > 20%*, increasing feed conversion

• Reduces need for additional protein feed, such as soybean meal

Others – energy • Xylanase & glucanase increase non-starch polysaccharide digestion

• Amylase improves starch digestibility, releasing more energy

• Cellulase improves fiber digestion

• Grain feed savings of ~ 2.5%*

• Less pollution (ammonia, nitrate, nitrous oxide and CO2)

* dependent on multiple factors – animal species, age, feed composition and other additives


BASIC LAYOUT


guide 42

Technical & Pharma (14% of 2013 sales)

Technical & Pharma Overview

Technical & Pharma Sales

Application TECH: Textiles / Leather / Pulp & Paper PHARMA: Albumin / Hyaluronic acid /

Biocatalysis

Competitors Genencor (Dupont), Alternative technologies and products

Growth drivers

TEXTILE: Lighter textile shades / Sustainability PHARMA: Animal free

materials / Consistent quality / Reliable sustained supply / Collaborative

partnerships

Growth barriers

TEXTILE: Fashion cycles / Fragmented industry PHARMA: Long sales cycle times / Competing and emerging

technologies

Recent launches

Peltec® X-Zyme® Terminox® Supreme

Hyasis® Albuflex®

777

748

810

710

757

-2%

-9%

11%

-17%

10%

-25%

-15%

-5%

5%

15%

25%

35%

45%

500

750

1.000

2009 2010 2011 2012 2013



BASIC LAYOUT


guide 43

Pharma Overview. Four technology offerings

Existing business

Emerging business

VELTIS® Hyaluronic Acid

Albumin-based technology for half-life extension through albumin fusion or chemical conjugation.

Bacillus-derived hyaluronic acid to be used as an ingredient in medical devices and pharmaceutical products.

Benefits: • Improved dosing regimes • Increased patient

compliance • Natural alternative to

existing technologies

Benefits: • Superior safety • Consistency • Minimized risk


Drug Discovery Drug

Development Manufacturing Distribution

Sales and Marketing

The classic pharma value chain

Novozymes

Enzymes for Biocatalysis

Recombinant Albumin

Enzyme portfolio used as catalysts for the production of pharmaceuticals.

Recombinant albumins used as ingredients to stabilize drug and vaccine products and in medical devices.

Benefits: • Improved yields • Simplified processes • Fewer byproducts in API

manufacturing

Benefits: • High consistent quality • Safe and animal-free

BASIC LAYOUT


guide 44

Veltis® pipeline – Drug candidates using Novozymes ‘albumin technologies for half-life extension

Partner Drug PI PII PIII MA Market

Tanzeum/Eperzan (Albiglutide) - GLP1 for Diabetes

Egranli Balugrastim (Neugranin) - Biosimilar for cancer treatment

rIX-FP - Once weekly for Hemophilia B

rVIIa-FP - Novel drug for Hemophilia A & B

8 projects in feasibility & preclinical with partners such as CSL, Teva, Epivax, Top-10 pharma company etc.

Multiple opportunities and potential revenue streams in Pharma from Albumin

Recombumin® – Drugs manufactured or formulated using Novozymes’ recombinant albumin providing running revenue

Partner Drug PI PII PIII MA Market

MMR vaccine

N/A Childhood vaccine

Surgical sealent

N/A Urology

5 projects in pre-clinical to phase 2 with partners such as R-tech Uno, etc.

1

2


1 2 3 4 5




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6 5

INVESTOR PRESENTATION SUSTAINABILITY & CORP. GOVERNANCE



BASIC LAYOUT


guide 46

Scientific approach

Governance structure

Green technology

Three-pronged Core of Novozymes’ Sustainability

Green means business

Our innovative green solutions embed sustainability and drive new business opportunities

Sustainability is in our DNA

- Corp. Governance structure - Sustainability department - Mission, Vision, Values - Compensation

It’s all in the numbers

- All products are life-cycle assessed (LCA) - LCA integrated in value chain from R&D to S&M - Carbon footprint and emissions abatement

Use of natural resources

Economic growth

Bioinnovation

TIME

Risk mitigation

Cost reduction

Business dev.


BASIC LAYOUT


guide 47

• Novozymes’ principles for Executive Leadership remuneration ensure close alignment with long-term shareholder interests, links remuneration to shareholder gains and losses, and ensures management retention

• In 2013, Executive leadership team of 6 received DKK 43 million in remuneration (incl. pension) + DKK 35 million in expensed stock/based incentive programs

Remuneration Principles for Executive Leadership

Annual remuneration scheme Long term incentive program (2014-2016)

0

2

4

6

8

10

12

14

16

18

Month

s o

f sala

ry p

er

year

Max 2 months of base

salary cash bonus linked

to fulfilment of EBIT and

sustainability targets

Max 3 months of base

salary cash bonus linked

to fulfilment of personal

targets

Base salary

0

20

40

60

80

100

0,0 0,5 1,0 1,5 2,0 2,5 3,0 3,5 4,0 4,5 5,0 5,5 6,0% s

tock &

options

aw

ard

ed

Bn DKK of accumulated economic profit

• Economic profit as measurement

• 50% stock options, 50% stocks

• Opportunity to double annual remuneration

• Maximum clause caps upside (100% = DKK 134m

at establishment, maximum cap 2x intrinsic value)

• Stock options awarded annually (3-year vesting

period), stocks in 2017 (no vesting period)


BASIC LAYOUT


guide

• In 2013, Novozymes helped customers save 52 million tons of CO2 through the application of Novozymes’

products, equivalent to taking 20 million cars off the road

Novozymes’ vision: working towards a future where biological solutions create the necessary balance

between a better business, a cleaner environment and better lives

Reducing CO2 Emissions Together with our Customers

Net CO2 saving using 1kg enzyme in different production processes

30 kg

ANIMAL FEED

40 kg

LEATHER

100 kg

TEXTILES

150 kg

BIOETHANOL

150 kg

DETERGENT

200 kg

FOOD

Up to 600 kg

PAPER

1300 kg

OILS & FATS

3400 kg

BIOCATALYSIS

3800 kg

CEREAL FOOD

48


BASIC LAYOUT


guide 49

Sustainability Performance and Targets

Targets 2013

targets 2013

realized 2014 target

Water efficiency (index 2005) 35% 33% 34%

Energy efficiency (index 2005) 42% 40% 42%

CO2 efficiency (index 2005) 50% 54% >50%

Million tons CO2 emission reduced 50 52 56

Occupational accidents per mio. working hours

<3.0 2.4 <3.0

Rate of absence <3% 1.8% <3%

Employee turnover 4-9% 7.5% 4-9%

Supplier adherence to our supplier

program 95% 97% 97.5%

“Satisfaction and motivation” score in

employee survey 75 77 75

“Opportunities for professional and

personal development” score in employee

survey

75 74 75

New leaders appointed who are women 30% 26% 30%

New leaders appointed of a nationality

other than Danish 55% 44% 55%

Rating from SAM in the Sustainability

Yearbook 2014 Gold Gold

Medal class rating

Long-term sustainability targets • Be recognized as a global leader within

sustainability

• Be a globally preferred employer, attracting global talent as a diverse and inclusive workplace

• Ensure 100% supplier adherence to Novozymes’ supplier program for commercial, quality and sustainability performance in 2015

• Champion the inclusion of biofuels as a

high-impact opportunity area in the U.N.’s Sustainable Energy for All initiative in 2015


1 2 3 4 5




guide


6

INVESTOR PRESENTATION FINANCIAL REVIEW

6



BASIC LAYOUT


guide 51

Historical Performance Demonstrates Track Record of Delivery

0%

4%

8%

12%

16%

20%

0

3.000

6.000

9.000

12.000

15.000

2000-2013 sales CAGR of ~7%

Sales DKKm Growth

16%

18%

20%

22%

24%

26%

0

1.000

2.000

3.000

4.000

EBIT

EBIT DKKm EBIT margin

52,0%

52,4%

51,8%

51,8%

52,6%

53,3%

53,7%

53,1%

53,5%

55,6%

55,7%

56,2%

57,2%

57,2%

50%

52%

54%

56%

58%Gross margin

0

500

1.000

1.500

2.000

8%

12%

16%

20%

24%

Free Cash Flow

FCF bef. acq. DKKm FCF bef. acq./sales

4%

8%

12%

16%

0

300

600

900

1.200

1.500

CAPEX

Capex DKKm CAPEX/sales

0

3.000

6.000

9.000

12.000

8%

12%

16%

20%

24%

28%

ROIC

Inv.Cap. DKKm ROIC, incl. goodwill


BASIC LAYOUT


guide 52

Low Exposure to Raw Material Fluctuations

35%

20%

45%

Raw materials

Energy/utilities & others

Indirect production cost

• Factors impacting COGS development:

• Productivity improvements, input prices,

currency

• Note: accounting practice implies that

there is a time lag between current price

levels and COGS

• Factors impacting Novozymes’ input prices:

• Geographical location, e.g.,

differences in input

• Contractual agreements, e.g., timing,

duration

• Substitution possibilities, i.e., flexibility

in use of different inputs, not dependent

upon one source

• Price development on other products

produced by our suppliers from the same

input

Split of COGS

Raw materials consist primarily of different carbohydrates. Approximately 50% of raw material input are e.g., sucrose, maltose,

glucose, starch.


BASIC LAYOUT


guide 53

Dividend and Stock Buyback History

• 2013 dividend per share DKK 2.50, up 13%, payout ratio 35.7%

• Expected buyback program in 2014 of up to DKK 2 billion

• Accumulated buybacks end of 2013 since IPO were DKK 5.7 billion

• Accumulated dividend and stock buybacks of ~ DKK 10.7 billion since 2000

Dividend / Buybacks

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Buyback 8 424 185 392 847 1.05 1.10 500 0 0 0 400 832 0

Dividend 124 146 162 217 231 255 278 309 326 358 504 600 687 786

DPS 0,33 0,40 0,45 0,63 0,70 0,80 0,90 1,00 1,05 1,15 1,60 1,90 2,20 2,50

0,00

0,50

1,00

1,50

2,00

2,50

3,00

0

200

400

600

800

1.000

1.200

1.400

1.600

Dividend per share, DKK

DKK million

Dividend Buyback DPS


BASIC LAYOUT


guide 54

B shares listed in Copenhagen under the symbol “NZYM B”

• Two share classes; A and B shares

• B shares listed in Copenhagen under the symbol “NZYM B”

• “A” share capital and 27,779,900 B shares held by Novo A/S, the management company of the Novo Nordisk Foundation

• Novo A/S owns 25.5% of the share capital and controls 70.4% of votes (All A shares & ~11% of B shares)

Shareholder Distribution

Shareholder distribution of B common stock*

Denmark

20%

UK

35% Own

shares 3%

Rest of

Europe 10%

North

America 16%

Novo A/S

11%

Rest of

World 5%

*Distribution equals where shares are managed, June 2014


BASIC LAYOUT


guide

Klaus Sindahl

Mobile (DK): +45 5363 0134 E-mail: [email protected]

Thomas Steenbech Bomhoff

Mobile (DK):+45 3077 1226 E-mail: [email protected]

Martin Riise

Mobile (USA): +1 919 649 2565 Mobile (DK): +45 3077 0738

E-mail: [email protected]

Investor Relations Contacts

Further investor relations information is available from the company homepage at

www.novozymes.com/investor

55


Documents

EDITING SLIDES IN THE NOVOZYMES TEMPLATE · 1. 9M 2014 presentation 2. Novozymes Overview 3. Strategy 4. Segmental Overview Household Care Food & Beverages Bioenergy Agriculture &