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ROADSHOW PRESENTATION Q1 2014

April 24, 2014

Table of Contents

2

Table of Contents

1. Q1 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

27-29

30-31

32-35

36-41

42-44

45-49

50-56

1 2 3 4 5




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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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guide 4

Safe Harbor Statement

This presentation and its related comments contain forward-looking statements, including financial expectations.

Forward-looking statements are by their very nature associated with risks and uncertainties that may cause actual results to differ materially from expectations.

The uncertainties may include unexpected developments in the international currency exchange and securities markets, market-driven price decreases for Novozymes’ products, and the launch of competing products in Novozymes’ core areas.


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Q1 2014 Summary

680 709

923

24.9% 24.9%

30.4%

12%

14%

16%

18%

20%

22%

24%

26%

28%

30%

32%

34%

Q1'2012 Q1'2013 Q1'2014

300

600

900

1,200

EBIT and EBIT margin Q1 2012- Q1 2014

2,734

2,845

3,033

0%

5%

11%

0%

2%

4%

6%

8%

10%

12%

Q1'2012 Q1'2013 Q1'2014

2,500

3,000

3,500

Sales and organic growth Q1 2012- Q1 2014

Strong first quarter performance

• 11% organic sales growth (DKK=7%). Strong as expected, driven by Household Care, Bioenergy and solid performance across markets

• 30% EBIT growth driven by one-time effect from The BioAg Alliance coupled with better than expected underlying earnings development

• The Bioag Alliance net impact on EBIT margin in Q1 is positive with around 4 %-points

• DKK 2,230 million in free cash flow bef. acquisitions

Important business milestones

• The BioAg Alliance approved and initiated

• Biopharma: Veltis® albufuse technology platform for half-life extension gets first market approval

FY-2014 profit expectations increased

• EBIT growth: + 8-10% • EBIT margin: ~26% • Net profit growth: + 8-10% • 6-9% organic sales growth unchanged. Sales growth

in DKK adjusted to 4-6% due to currencies

+4%

+30%

DKKm

DKKm


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Sales & Markets

Q1 2014 sales: DKK +7%, LCY +10%, organic +11%

162

510

398

762

1,013

187

455

514

797

1,080

Technical &

Pharma

Agriculture &

Feed

Bioenergy

Food &

Beverages

Household

Care

Sales by industry, DKKm

Q1 2014 Q1 2013

• Household Care: Sales continued on growth track, as customer interest in optimizing formulations for performance, low temperature wash, and chemical replacement remain unchanged

+29%/+34%

+5%/+8%

+7%/+10%

DKK growth/LCY growth

+15%/+19%

(11)%/(6)%

• Food & Beverages: Growth in all markets, primarily driven by baking and healthy concepts

• Bioenergy: Penetration of Avantec®, Spirizyme® Achieve & Olexa® continued to increase in a quarter with good underlying volume growth in US

• Agriculture & Feed: Reported numbers impacted by BioAg Alliance. Organically, sales were down by 1% due to timing. Feed contributed positively

• Technical & Pharma: Sales of pharma enzymes for the manufacture of pharmaceuticals were the main growth driver


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Business Development Activity Update

The BioAg Alliance initiated

Biomass Conversion industry under establishment

Biopharma technology gets stamp of approval

• The BioAg Alliance approved and initiated February 10

• Intangible assets and ~130 employees transferred to Monsanto

• Upfront payment received

• Good progress on integration and execution of 2014 plan

5 new commercial scale biomass conversion plants to come on-stream globally in 2014.

• Abengoa, USA

• POET-DSM*, USA

• Dupont, USA

• GranBio*, Brazil

• Raízen*, Brazil

• GlaxoSmithkline’s GLP-1 product, Albiglutide, approved in the EU mid-March and in the US April 15, 2014

• Drug to reach markets in second half of 2014

• Albiglutide is based on Novozymes’ albumin-based half-life extension technology Veltis®

*NZ to supply enzymes


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R&D Activity Update

BioChemicals: Termination of Bio-

polypropylene project

• Termination of R&D project with Braskem on the development of bio-based polypropylene

• Technical milestone deemed too hard to achieve vs. investment

• Still committed to other biochemicals projects

R&D gears up for The BioAg Alliance

• BioAg R&D focus on building new organization. First line of management in place

• New R&D site to be established on US East coast. Focus on BioAg. New employees primarily to join this site

• 2014 R&D ambition:

• Get daily working relationship up and running (governance, knowledge management, plans, reporting etc.)

• Ensure early pipeline development

• Strains already delivered to Monsanto for 2014 field trials


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Q1 2014 Financial Performance

Strong results for Q1 2014

• Double digit organic sales growth

• The BioAg Alliance gave one-time boost to profit and cash flow

• Better than expected underlying earnings development drive increased FY 2014 expectations

• Negative net investments due to transfer of assets to Monsanto and slow start to the CAPEX year

2014 profit outlook increased

• ~26% EBIT margin

• 8-10% EBIT and net profit growth

• 21-22% ROIC

• 6-9% organic sales growth maintained. Sales growth in DKK adjusted to 4-6% due to currency headwind

DKK 2 Bn share buy-back program initiated

• DKK 313 million spent in Q1, 2014.

• DKK 2 billion to be spent in total in 2014

Key financials Realized Q1 2014

2014 Outlook April 24

2014 Outlook Jan. 21

Sales growth, DKK +7% 4-6% 4-7%

Sales growth, LCY +10% 6-9% 6-9%

Sales growth, org. +11% 6-9% 6-9%

EBIT growth +30% 8-10% 6-9%

EBIT margin 30.4% ~26% 25-26%

Net profit growth 35% 8-10% 6-9%

Net investments excl. acq., DKKm

(334) 900-1,000 900-1,100

Free cash flow before acq., DKKm

2,230 3,300-3,400 3,200-3,300

ROIC incl. goodwill 25.6% 21-22% ~21%


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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 Apr, 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

12

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

13

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

14

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%

15

+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

16

Blair, Nebraska

Enzyme production

Ottawa, Canada Enzyme production

Milwaukee, Wisconsin BioAg production

Houston, Texas

BioAg production

Shenyang, China Microorganisms

production


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6 3

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: DKK ~ 22bn

Current enzyme market DKK ~ 22bn

Untapped market Multi-billion (US$)

2000: DKK ~ 12bn

2013: DKK ~ 22bn

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. 18

Global enzyme market value:


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Multiple Drivers Create a Sustainable Business with Significant Growth Potential

19

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

21


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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

22

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


23

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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

24

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

25

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

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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Enzymes are Gaining Traction in Detergents

The advantages of enzymes..

..drive new product launches..

..increasing the overall penetration

of enzymes

Chemicals

replacement

Surfactants

Builders

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

Compaction

Cost stability

Wash performance

Europe

LATAM

NA

AP MEA

Source: Novozymes estimates and Mintel


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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

29

Replacing Chemicals in Detergents

Source: Agglomerations and Novozymes estimates Enzyme classes in toolbox: Proteases, amylases, mannanases, lipases, pectinases, cellulases

Surfactants 37%

Builders 34%

Enzymes 6%

Perfume 4%

Others 7%

Bleach 8%

Polymers 4%

Raw mat. cost distribution in top-tier powder detergent

Surfactants 68%

Builders 8%

Enzymes 12%

Perfume 7%

Others 4% Polymers 1%

Raw mat. cost distribution in top-tier liquid detergent Benefits:

• Reduce oil price sensitivity • Improve wash performance - e.g. cold-water wash • Compaction • Sustainability

Surfactan

ts

Builders

Novozymes’ unique enzyme toolbox can replace a part of the

chemical surfactants & builders


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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



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

33

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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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• A transformational opportunity for Novozymes • Turning renewable low-value carbon into high-value product is revolutionary • Enzymes poised to be a leading conversion technology • Entire field to be the focus of significant innovation once commercialization has caught on

Biomass Conversion; Food, Feed, Fuel, Chemicals and Materials Made from Biomass and Waste

Potential offered by biorefining by 2030:

• ~8.2 million man-years employment

• 475 million tons CO2 reductions/year

• $3,000 billion in accrued revenue for a $500 billion investment

Source: ”Moving Towards a Next-Generation Ethanol Economy,” Bloomberg New Energy Finance, 2012


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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



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The BioAg Alliance with Monsanto - Aiming to Build Next Important Yield Platform for Farmers

BIOTECHNOLOGY BREEDING AGRONOMICS CHEMISTRY

INTEGRATED SYSTEM EMERGING TRENDS

• Plant health & bionutrients

• Extended disease protection

• In-season insect control

• Improved biofertility

BIOLOGICALS

• Multiple components converging to drive yield and productivity with more platforms coming together in more ways than ever

• Biologicals offer farmers another tool to improve yield

• Replacing agricultural inputs with sustainable, cost-effective solutions that can increase yield using less input

• Increasing pressure to bring market solutions with faster development cycles compared with other Ag innovations


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Combined Leadership: Combination of Novozymes and Monsanto Establishes Industry's Most Advanced Microbials Platform

The BioAg

Alliance

ELEVATES MICROBIALS AS NEXT MAJOR “BEYOND-THE-SEED”

OPPORTUNITY TO DRIVE YIELD AND SUSTAINABILITY

PLATFORM Industry’s only integrated platform with established capability in discovery,

development and commercialization of microbial solutions

PRODUCTS Current commercial product portfolio that generated ~$120M in 2012 revenue

PIPELINE Complementary organizations to co-fund significant R&D effort and leverage

existing microbials from both companies for industry’s most advanced microbials

pipeline

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

+


BASIC LAYOUT


guide 39

Power of Microbial Technology: Novozymes’ Proven Microbials portfolio

Nitrogen

fixation

Biofertility

products

Bioyield

enhancers

Biocontrol

products

Biofungicides Bioinsecticides Phosphate

solubilization

• A phosphate

inoculant that grows

along the roots,

making more soil and

fertilizer phosphate

available to the plant

• Nitrogen-fixating

inoculants

• Combined products

utilize a combination

of traditional nitrogen

inoculant with LCO

(lipochitooligo-

saccharide) &

JumpStart

• Unique LCO molecule

enhances nutritional

capabilities, driving

natural growth

processes, which

enhances plant health

and crop performance

• Microbial seed

inoculant for increased

yield

• Slows down the

resistance of current

spray chemicals,

thereby extending the

life of those

chemicals, within

high-value fruits and

vegetables

• Bacterial-based

biofungicide for

disease control

• Wide mode of action

to help break

resistance in current

chemical products

within high-value

fruits and vegetables

as well as turf and

ornamentals

Taegro®, Actinovate® MET52® Torque®, Proventus®,

Ratchet®, QuickRoots®

JumpStart® TagTeam®,

Cell-Tech®, Optimize®

3 2 1

Plant growth

& health

CURRENT PRODUCT PORTFOLIO CASE: JUMPSTART ®

1. Microorganism applied to the seed

before planting

2.

The active ingredient, a soil fungus,

grows on the roots and solubilizes the

residual soil phosphate, unavailable for

plant use

3. Yield increases due to superior nutrient

uptake in plant’s early life stage

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


BASIC LAYOUT


guide

NOVOZYMES BIOAG’s SALES DEVELOPMENT2

2003 – 2012 HISTORICAL RESULTS: 2003 = 100

FACTORS:

• Novozymes BioAg 2012 annual revenue of approximately $120 million

• North America accounts for roughly 2/3 of sales

• Innoculants for nitrogen fixation for soy and other pulse crops account

for the single biggest application

0

50

100

150

200

250

300

350

400

450

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

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

2. Novozymes Internal analysis. Combined sales development from the combined business of EMD/Merck Crop Bioscience, Philom Bios, EBS and Turfal. Does not include Natural Industries and TJ

Technology

40

Ag Biologicals Market: Novozymes Has Developed a Significant Business in Fast Growth Market

NOVOZYMES BIOAG SALES GROWTH: Fast growth through key investments and core

competencies in Microbials

AG BIOLOGICALS MARKET1 Market Segmented by Product Class

MARKET ECONOMICS:

Industry growth driven by increasing

demand for green ag chemical options

Annual Growth Mid-Teens CAGR

Microbial Pesticides

Microbial Innoculants

Beneficial Insects

Biochemical

Other

IND

EX

ED

RE

VE

NU

E

2012

Estimated Sales $2.3B

2/3rd Microbials


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

Feed & Other Tech. Enzymes 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

Bacillus-derived hyaluronic acid offering superior safety, consistency and performance offers cost savings and minimized risk

• Used as an ingredient in medical devices and pharmaceutical products

• Next generation albumin-based technology to create longer-lasting drugs through albumin fusion or chemical conjugation

• Improved dosing regimes for increased patient compliance

• High quality and animal-free recombinant albumins developed to provide customers with a safe and consistent, regulatory compliant product

• Used as an ingredient to stabilise drug and vaccine products and in medical devices

• Comprehensive biocatalysis enzyme portfolios including lipases, proteases, esterases, oxido-reductases and amylolytic enzymes

• Improved yields, simplified processes and fewer byproducts in API manufacturing


Hyaluronic Acid Recombinant Albumin

VELTIS® Enzymes for Biocatalysis

Novozymes

Drug Discovery Drug

Development Manufacturing Distribution

Sales and Marketing

The classic pharma value chain

BASIC LAYOUT


guide

Company Deal Drug Target Pre-clin

PI PII PIII MAA stage

Fusion + expression

Several molecules (G-CSF, BNP, …)

Bio- betters

X X X

Fusion Blood coagulation factors

FIX, FVIIa, + others

X X X

Fusion + expression

Kunitz Domain proteins and antibody fragment

Several X

Publicly available information on companies using Novozymes’ VELTIS® technology:

A number of VELTIS® candidates are in clinical development

44

Albiglutide® (GLP-1 albumin fusion) for diabetes type II, approved in both the EU and the US in 1H 2014

http://www.gsk.com/index.htm

http://www.cslbehring.com/s1/cs/enco/1151443990667/content/1151443991017/home.htm

1 2 3 4 5




guide


6 5

INVESTOR PRESENTATION SUSTAINABILITY



BASIC LAYOUT


guide 46

Best in Class Storebrand SRI

Member of FTSE4Good Global and Europe

Member of SB20 by SustainableBusiness.com

PRIME status by oekom research

# 3 in Carbon Disclosure Project Annual Nordic Leadership Index

Novozymes in the Dow Jones Sustainability Indexes (DJSI): • Included in DJSI Biotechnology sector since

2000, and sector leader 2000-2007 and 2009-2013

• ‘Gold Class’ rating in 2010-2014 in Sustainable Asset Management (SAM) Sustainability Yearbook

Founding member of the Sustainability Consortium

Recognized as a Sustainability-Driven Organization


BASIC LAYOUT


guide 47

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

• 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 - Good progress om 2013, but not all targets met

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

19%

UK

37% Own

shares 2%

Rest of

Europe

13%

North

America 15%

Novo A/S

11%

Rest of

World 3%

*Distribution equals where shares are managed, January 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


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