Mikroorganismer Fremtidens arbejdskraft

Tina Sejersgård Fanø EVP, Agriculture and Bioenergy Planteavlsdag 2017

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Novozymes at a glance

World leader in Bioinnovation

Listed 2000

Ticker NZYM B

Exchange Nasdaq Copenhagen

CEO Peder Holk Nielsen

(since 2013)

• ~6,500 employees

• ~700 products sold in 140 countries

• Major production footprint in 3 regions

Global

Profitable

Majority owner Novo A/S

R&D intensive

• ~1,400 people employed in R&D

• ~7,000 patents

• ~ 13% of sales invested in R&D

• Innovation focused on enzymes and microbes

• Controls 25.5% of the capital

• ~70% of the votes

• 2 seats on the board of directors

11,234 11,746

12,459

14,002 14,142

20%

22%

24%

26%

28%

30%

32%

34%

36%

2012 2013 2014 2015 2016

EBIT margin

• USD 2bn in sales

• ~28% EBIT margin

• ~25% ROIC

DK

Km

5 years of organic growth & EBIT

+4% +7% +7% +4% +2%

Market Leader in industrial enzymes • ~48% Novozymes

• ~19% DuPont

• ~33% Others incl. DSM, Chinese, captive etc.

Company background

2 LATEST RESULTS • OVERVIEW AND STRATEGY • MARKET OVERVIEW • SUSTAINABILITY • FINANCIALS AND GOVERNANCE

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A unique partnership combing Novozymes’ and Monsanto’s world class capabilities forming the industry's most advanced microbial platform

A premier vehicle for bringing microbes to market and a sustainable Agriculture platform for farmers to produce more

with less

A joint focus to transition this small niche into mainstream Ag practice

The Novozymes – Monsanto BioAg Alliance

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ESTABLISHED MICROBIAL LEADERSHIP INDUSTRY-LEADING R&D CAPABILITY AND COMMERCIAL FOOTPRINT

REGULATORY

REGISTRATIONS

PROCESS

OPTIMIZATION

Extensive microbial library

Strain optimization & formulation

World-class fermentation

Existing microbial products

Unique microbial library

Leading field testing network

Global commercial footprint

Ability to unlock placement with precision

agriculture

The BioAg Alliance

+

DIS

CO

VE

RY

COMMERCIALIZATION

MANUFACTURING SELECTED

MICROBES CUSTOMERS

FIELD

TESTING

SMALL-SCALE

FERMENTATION

DISCOVERY

COLLABORATIONS

IN-LICENSING PRODUCTS &

COMPLEMENTARY TECHNOLOGIES

OUT-LICENSING

OPPORTUNITIES

BioAg Alliance: Initiation 2014 Establishment of Alliance in 2014 to drive microbials as

industry platform for next wave of yield and sustainability solutions

Leveraging Alliance Capabilities and

Establishing Microbial Platform of

Seed Applied Solutions for Core

Crops of Corn, Soy, Wheat and

Canola/OSR

MA

RK

ET

RE

AC

H

Expanding Market Opportunity

including Fruits & Vegetables,

Rice, Cotton and Improved

Core Crop Products

NEAR-TERM MID-TERM LONG-TERM

Precision Agriculture

focusing on advanced

microbial solutions with

significant product offerings

BioAg Alliance Opportunity Began in 2014 with the goal of transitioning Ag Microbials from an Ag niche into mainstream Ag practice

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+260bn USD market potential driven by favorable underlying mega trends

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RISING

population

1980

4.4B

TODAY

7.1B

2050

9.6B+

CHANGING

economies & diets

9% in 1965

14% in 2030

DIETARY PERCENTAGE OF MEAT

DECLINING

arable land

1 ACRE per person in

1961

less than

1/3 ACRE per person in

2050

54

185

20

Market size of

>260bn USD

Crop Protection Yield Fertilizer CROP PRODUCTION WILL NEED TO DOUBLE

BY 2050

Main challenges within BioAg

Growth Barriers

• Unclear regulatory environments

• Need for education of stakeholders

regarding this long-term sustainable

production method

• Biotechnology solutions at relatively early

stage of development

• Technology robustness

There are approximately

in 1 tablespoon of soil1

Microbial solutions for agriculture

Microbials, notably bacteria and fungi, are types of agricultural biologicals that protect crops from pests and diseases and enhance plant productivity and fertility.

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1. North Carolina State

University Cooperative

Extension

How are microbials applied?

Seed treatment

Foliar

In-furrow

BioControl

• Complements or potentially replaces

chemical pesticides

• Provides additional modes of action

BioYield

• Utilizes nutrients in the soil

• Creates stronger, healthier plants

• Provides new options for sustainable

agriculture

Integrated solutions - Biologicals complement a systems approach to increasing yield

Breeding Biotechnology Biologicals Chemistry Agronomics

Highest yielding

genetics for the

environment:

conventional

breeding gains

and natural

disease

resistance

Complementary agronomic and yield enhancing traits

Derived from natural materials or based on natural processes to support plant health and pest protection

Seed treatments and selective chemistries protect the crop from pests, weeds and diseases

Optimizing farm management practices, including rotations, soil management, cover crops

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Location based performance

Performance under

insect/disease pressure

Approved

Global Corn BreedingGlobal Environment & Modeling

Monsanto Company Confidential

Soil & environmental interactions

(within field variability)

Macro-zone based performance

Extensive field testing on a scale never seen before for microbials

One-of-a-Kind R&D approach Leveraging the combined strengths of Novozymes and Monsanto

Alliance’s unique “Field Yield Testing” approach tests 1000’s of microbials across 10’s of

thousands of locations

• Microbes are isolated from diverse environments and for

each the genus, species and molecular sequence are

identified

• >16.000 new diverse isolates and ~5.800 fermentations

delivered for seed treatment between 2013-2016 field trials.

• Microbials applied on corn, soy and wheat seed and tested in

real soils to see if they can compete in a natural environment

while also colonizing roots

• Linking field data to performance & genomes to accelerate

innovation with complete data mining efforts to understand

performance drivers

• Early results are promising - Corn microbial yield product

concept advanced to Phase 2 and promising hits in soy.

A unique transformational R&D program for broad acre product development and prescriptive deployment

Monsanto’s field testing network is the largest in the world

Significant early breakthroughs have demonstrated the promising future of The BioAg Alliance.

Acceleron® B-300 SAT – A breakthrough corn inoculant

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Trials demonstrated significant corn root development

Acceleron SAS +

Acceleron B-300 SAT

Acceleron

SAS Control

Field Testing Results show improved nutrient access

200

205

210

2 year average yield data across

78 locations supports >3 BU/AC

average yield advantage

Acceleron SAS1

Control

Acceleron SAS1 +

Acceleron B-300 SAT

First microbial on-seed inoculant having more than two years on-seed stability and consistent yield benefit

Represents the first Alliance microbial seed treatment for corn

Global expansion in progress with the potential to penetrate >90M acres– making it one of the largest biological products in the ag industry

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