Road Show presentation 1H 2015...This presentation and its related comments contain forward -looking statements, including statements about future events, future financial performance,

Road Show presentation 1H 2015

August 6th 2015

This presentation and its related comments contain forward-looking statements, including statements about future events, future financial performance, plans, strategies and expectations. Forward-looking statements are associated with words such as, but not limited to, "believe," "anticipate," "expect," "estimate," "intend," "plan," "project," "could," "may," "might" and

other words of similar meaning.

Forward-looking statements are by their very nature associated with risks and uncertainties that may cause actual results to differ materially from expectations, both positively and negatively. The risks and uncertainties may, among other things, include unexpected developments in i) the ability to develop and market new products; ii) the demand for Novozymes’

products, market-driven price decreases, industry consolidation, and launches of competing products or disruptive technologies in Novozymes’ core areas; iii) the ability to protect and enforce the company’s intellectual property rights; iv) significant litigation or breaches of contract; v) the materialization of the company’s growth platforms, notably the opportunity for marketing biomass conversion technologies or the development of microbial solutions for broad-acre crops; vi) the political conditions, such as acceptance of enzymes produced by genetically modified organisms; vii) the global economic and capital market conditions, including, but not limited to, currency exchange rates (USD/DKK and EUR/DKK in particular, but not exclusively), interest rates and inflation; viii) significant price decreases on input and materials that compete with Novozymes’ biological solutions. The company undertakes no obligation to update any forward-looking statements as a result of future developments or new information.

Forward-Looking Statements

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

Table of contents

1. 1H 2015 presentation

2. Novozymes Overview

3. Strategy

4. Segmental Overview

- Household Care

- Food & Beverages

- Bioenergy

- Agriculture & Feed

- Technical & Pharma

5. Sustainability

6. Financial Review

4

10

16

28

29

32

35

39

45

48

53

3


1H 2015 Summary

Strong earnings performance despite headwinds in

important markets

• 5% organic sales growth is below expectations. 15% growth in DKK

sales – highest-ever reported sales in six months

• Strong growth in Agriculture & Feed driven by performance. Good

contribution from Food & Beverages

• Uncertainty and challenging market environment in Household Care

and Bioenergy create headwinds

• ~20% EBIT growth and EBIT margin expansion of ~1 %-point,

adjusted for The BioAg Alliance agreement in Q1 2014

2015 profit outlook maintained. Sales expectations

lowered and reflect uncertain business climate

• Organic sales growth: 4-7%, revised from 7-9%

• DKK sales growth: 13-16%, revised from 16-18%

• EBIT growth maintained at 15-17%

• EBIT margin increased to 27-28%, up from ~27%

• Net profit growth maintained at 11-13%

• ROIC: 25-26%, unchanged

1.443

1.710 1.909

24,6% 28,1% 27,2%

10%

15%

20%

25%

30%

1H 2013 1H 2014 1H 20151.000

1.250

1.500

1.750

2.000

2.250

EBIT and EBIT margin 1H 2013 – 1H 2015

5.870 6.094

7.028 6%

8%

5%

0%

2%

4%

6%

8%

10%

1H 2013 1H 2014 1H 20154.000

5.000

6.000

7.000

8.000

Sales and organic growth 1H 2013 – 1H 2015

5

DKKm

DKKm

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

Sales growth slowed in Bioenergy

1H sales up by 2% organically

1. Challenging market dynamics: Volatile commodity prices and low ethanol margins have customers focusing on costs

2. Negative mix effect for Novozymes as some customers seek alternatives to yield solutions

3. Several innovations in test- marketing to accelerate growth by broadening scope of solutions to cater for more customer care-abouts

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

U.S. semi-annual ethanol volume growth rates and Novozymes Bioenergy organic sales growth

U.S. ethanol volume growth Novozymes org. Bioenergy growth


Sales & Markets

1H 2015 sales: DKK +15%, organic +5%

Q2 2015 sales: DKK +13%, organic +1% Household Care: Sales negatively impacted by uncertainty in emerging markets, a dynamic U.S. market and lower sales to one customer in particular. Strong growth with a number of important customers in other markets

Food & Beverages: Good performance across markets. Baking, healthy concepts and starch the most significant contributors to growth

Bioenergy: Growth tempered by strong cost focus by customers as they navigate volatile markets and low ethanol margins. U.S ethanol production estimated up by ~3%

Agriculture & Feed: A good North American season drives strong 1H performance in BioAg. Growth in animal feed more moderate following Q2 destocking

Technical & Pharma: Good performance driven by pharma sales

402

919

1.050

1.599

2.124

488

1.141

1.288

1.846

2.265

Technical &Pharma

Agriculture &Feed

Bioenergy

Food &Beverages

HouseholdCare

Sales by industry, DKKm

1H 2015 1H 2014

+23% / +2%

+15% / +5%

+7% / 0%

DKK growth org. growth

+21% / +6%

+24% /+19%


R&D Update

• Household Care: Working on new innovation for stain removal, hygiene improvement and dedicated emerging markets solutions to accelerate growth

• Bioenergy: Expect to launch one or more innovations during 2H 2015 to address changing demands from U.S. corn ethanol producers

• Animal Health & Nutrition: New Novozymes & Adisseo partnership to launch a probiotic for poultry

• New innovation campus in Denmark: Ready by 2018, campus to house 800 employees – predominantly R&D


http://www.adisseo.com/

1H 2015 Financial Performance & Outlook

Strong earnings performance in 1H 2015

• Gross margin slightly up

• Disregarding the net one-time impact from The BioAg Alliance,

EBIT grew by ~20%, mainly due to positive impact from currency

developments and operational efficiencies

• EBIT margin expansion of ~1 percentage point

• Net financial costs increased – impacted by currency hedging

• Net investments and cash flow generation on track

2015 outlook revised

• Organic sales growth lowered, as positive developments in

Agriculture & Feed and Food & Beverages cannot make up for

headwinds in Bioenergy and Household Care. Uncertainty has

increased

• Profit outlook maintained, as good productivity and further

operational efficiencies offset lower sales expectations, leading to

higher EBIT margin

Key

financials Realized

1H 2015 2015 Outlook

Aug. 6

2015 Outlook

Apr. 23

Sales growth, org. +5% 4-7% 7-9%

Sales growth, DKK +15% 13-16% 16-18%

EBIT growth +12% 15-17% 15-17%

EBIT margin 27.2% 27-28% ~27%

Net profit growth 8% 11-13% 11-13%

Net investments

excl. acq., DKKm 371 900-1,000 ~1,000

Free cash flow

before acq., DKKm 1,616 2,500-2,700 2,500-2,700

ROIC incl. goodwill 26.4% 25-26% 25-26%



Novozymes – the world leader in bioinnovation

Who are we?

QUARTERLY RESULTS • NOVOZYMES OVERVIEW • STRATEGY • SEGMENTAL OVERVIEW • SUSTAINABILITY • FINANCIAL REVIEW 11

Founded 1925

Listed 2000

Ticker NZYM B

Exchange Copenhagen

Market Cap* US$ ~15bn

Long-term targets

2015-2020:

8-10% organic sales

≥ 26% EBIT margin

≥ 25% ROIC

Household Care

Food & Beverages

Bioenergy Agriculture

& Feed Technical &

Pharma

Global R&D intensive Profitable Majority owner

Novo A/S

~6,500 employees,

700 products in

140 countries

~7,000 patents,

~14% of sales

spent on R&D

$2bn in sales and

27.2% EBIT margin

in 2014

controls 25.5% of

the capital and

70.4% of the votes

Experienced Leadership Team

Peder Holk Nielsen

President and CEO

Novozymes since 1984

Background: Chemical Engineering

Benny D. Loft

Executive Vice President,

CFO and Corporate Functions


Background: State-authorized public

accountant

Per Falholt


Research and Development


Background: Chemical engineering

Andrew Fordyce


Business Operations



Thomas Nagy


Supply Operations



Thomas Videbæk


Business Development




Uniquely Diversified Group – Creates Synergies and New Opportunities

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

• ~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

Household Care Food & Beverages Bioenergy Agriculture & Feed Technical & Pharma

Laundry & Dishwasher detergents,

Cleaning products

Baking, Starch to syrups, Brewing &

Alcohol, Healthy concepts

Corn ethanol

Cellulosic biofuels

Animal feed

BioAgriculture

Textile & Leather, Pulp & Paper,

Wastewater, Pharma ingredients

35% 26% 18% 14% 7%


Industry growth profiles and 5-yr org. CAGRs Region growth profiles and 5-yr LCY CAGRs

35%

26%

18%

14%

7%

HHC

F&B

BioE

A&F

T&P

38%

34%

17%

11%

Europe, Middle East and Africa

North America

Asia Pacific

Latin America

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

0

1

2

3

4

5

2010 2011 2012 2013 2014

Bn

DK

K

HHC 9%

F&B 6%

BioE 8%

A&F 8%

T&P 3%

0

1

2

3

4

5

2010 2011 2012 2013 2014

Bn

DK

K

EMEA 8%

NA 6%

AP 5%

LA 18%

14

Industry Region


15

Global Production and R&D Setup



15 years of innovation-driven returns

Strong absolute returns since 2000

• 2.5x sales

• 4x EBIT

• 5x net profit

• DKK ~30bn In operating cash flows

Driven by topline and leverage

• ~7% organic sales CAGR

• +5.4 %-points gross margin

• +10.5 %-points EBIT margin

• +12.9 %-points ROIC

Innovation is the recipe

• DKK 16bn invested in R&D

• +100 new solutions marketed


10%

12%

14%

16%

18%

20%

22%

24%

26%

28%

30%

0

2.000

4.000

6.000

8.000

10.000

12.000

14.000Sales DKKm

EBIT margin

R&D/Sales

ROIC

Historical performance

Our set of competitive advantages across the value chain has led to a unique market-leading position

18

Scale Quality Sustainability High barriers

• Production: 5 core

plants in 3 regions

• Research &

Development: 2/3

of total investment

of industry

• Technical

services: half of

commercial

organization “on

site”

• Market &

technology

coverage

• Superior logistical

agility due to full

control of value

chain

• Right quality for

customers and

regulatory

requirements

• Triple bottom line

• Trusted long-term

partner

• Pioneering life

cycle assessment

documentation

• More than 7,000

patents

• Diverse biotech

know how and

investments

needed to

compete

• Customer

partnerships

• Manufacturing

expertise

48%

20%

6%

26%

NovozymesGenencor (DuPont)DSMOthers and captive

Source: Novozymes estimate

Novozymes

DSM

Others and captive

Genencor (DuPont)


DKK ~5bn spent on acquisitions

Investing for long-term growth; People, CAPEX and M&A

0

1000

2000

3000

4000

5000

6000

7000

2000 2014

2x employees – from 3,208 FTE to 6,454 FTE

Latin America

Asia Pacific

North America

Denmark (incl. EMEA)

>1.5bn DKK

> 500m DKK

>100m DKK

<100m DKK

BioAg

Enzymes

Biopharma

Biologicals

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Earth Bioscience

Philom Bios Turfal

EMD

CropBioscience

Natural

Industries

TJ

Technologies

BioAg Alliance with

Monsanto

Biocon Enzymes

BioGaia Delta GroPep Divestment Biopharma (Lund)

Iogen

Enzymes

Divestment Roots Octen Gamlen

BETA

Renewables

Sybron Jefferies Semco Roots


DKK ~11bn in CAPEX 2000-2014

2000-04

2005-09

2010-14

NA

LATAM APAC

EMEA

Growth until 2020 expected to be driven by established industries with additional growth from platforms

Novozymes’ organic growth average, 2010-2014

Growth platforms’ organic growth average, 2010-2014

Established industries’ organic growth average, 2010-2014

2010 2011 2012 2013 2014

Growth platforms

- BioAg

- Biomass Conversion

- Animal Health & Nutrition

- Pharma

Established industries

- Household Care

- Grain-based ethanol

- Food & Beverages

- Technical Long-term

organic growth target

8-10%

Established industries are the basis

for growth

Growth platforms expected to enable

8-10% growth

Diversification in revenue streams

important for solidity

2015 2016 2017 2018 2019 2020

1

2

3



Our new strategy puts partnerships front and center for success in creating impact


We expect the relative spend on R&D to fluctuate around

of sales

12%

13%

14%

15%

16%

0

200

400

600

800

1.000

1.200

1.400

1.600

1.800

2.000

R&D costs DKKmR&D/Sales

This will allow us to continue the trend of being the investment leader in microbial technologies and industrial enzyme innovation

Own estimates indicate that Novozymes spends 2/3 of the entire enzyme industry’s R&D spend on its 48% market share

R&D spend


R&D investments drive growth today and enhance technology leadership for long-term impact

Established business areas

Basic technologies Advance understanding, application support, development and formulation of biological systems

R&D investments in production systems and productivity

Growth platforms

Household

Care

Food &

Beverages

Grain-based

ethanol

BioAg

Biomass

Conversion

Animal

Health &

Nutrition

Biopharma

Emerging

industries

Technical

industries


Developing new technology and business platforms

Continued development in our technology base…

…creates opportunities to develop new business platform

Biomass

conversion

Bio-

Agriculture

Biopharma

Animal

Health &

Nutrition

Emerging

platforms

Molecular

biology

Bio-informatics

& Systems

biology

Screening

systems

Industrial-scale

fermentation

Strain development

using protein

engineering,

genetic

modification, DNA

sequencing, etc

Application of

computer

algorithms in the

computational

discovery of

enzymes in DNA

databases

Application of high-

throughput robotics

to find the best

enzyme candidates

Production of

enzymes and

proteins whilst

continuously

optimizing and

improving yields


Raw materials

Micro-organisms

Enzymes

Fermentation

Purification

Formulation

Fermentation technology – 3 levers to improves profitability

• All of Novozymes’ solutions are produced via fermentation

• Dedicated R&D investment (15-20% of R&D investment) goes to improving production systems

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

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


-0,2

0,0

0,2

0,4

0,6

0,8

1,0

-500

0

500

1.000

1.500

2.000

2.500

Net-Interest-Bearing-Debt/EBITDA NIBD DKKm

NIBD/EBITDA

Financial priorities; - Innovation, growth & shareholders

ROIC expected at ≥ 25%:

• Growth in net profit

• Deferred income from

The BioAg Alliance decreasing

• Less growth in invested capital

NIBD/EBITDA target: 0‒1

27

2015 to 2020: Organic

sales growth

R&D

8-10% ~14% ~8% 40% 2bn + CAPEX Dividend

payout ratio

2015 buyback

Initiatives & returns



Household Care Overview

of sales in 2014

Applications Laundry & dishwasher detergents Novozymes market share

>60%

Competition Dupont


Current Trends Growth Drivers Growth Barriers

• Better-performing laundry

detergents –also at low

temperature

• Optimization of detergent

formulations to decrease cost

and cost volatility

• More sustainable operations

and products

• Changing consumer

preferences toward liquids

and compacted products

• Innovation to raise detergent

performance at low

temperatures, to increase

sustainability and optimize

formulations

• Demand for better-performing

products in emerging markets

• GDP and population growth in

emerging markets

• Sustained low input costs that

compete with enzymes for

share of COGS

• Traditional consumer wash

habits

• Regulation favoring

surfactants over enzymes in

emerging market product

standards

• Technology development

needed to enable enzyme

performance in all liquid

detergent formats

3.324 3.514 3.973 4.222 4.353

13%

7% 11% 9%

4%

2010 2011 2012 2013 2014

Sales Sales DKKm ORG growth

A strong portfolio of innovation with global relevance – built over the last 50 years

300+ brands

~100 countries

Albania, Algeria, Argentina, Australia, Austria, Bangladesh, Belarus, Belgium, Bolivia, Bosnia-Herz., Brazil, Bulgaria, Cameroon, Canada, Chile, Colombia, Costa Rica, Croatia, Cyprus, Czech. Republic,

Denmark, Dominican Rep., Ecuador, Egypt, El Salvador, Estonia, Ethiopia, Finland, France, Germany, Great Britain, Greece, Guatemala, Honduras, Hong Kong, Hungary, India, Indonesia, Iran, Ireland, Israel,

Italy, Ivory Coast, Japan, Jordan, Kenya, Lebanon, Lithuania, Luxembourg, Malaysia, Mauritius, Mexico, Morocco, Myanmar, Netherlands, New Zealand, Nigeria, Norway, Oman, P.R. China, Pakistan,

Panama, Peru, Philippines, Poland, Portugal, Puerto Rico, Qatar, Romania, Russian Fed., Saudi Arabia, Serbia, Singapore, Slovakia, South Africa, South Korea, Spain, Sri Lanka, Sudan, Sweden,

Switzerland, Syria, Taiwan, Tanzania, Thailand, Trinidad &Tobago, Tunisia, Turkey, Uganda, Ukraine, United Arab Emirates, USA, Uzbekistan, Venezuela, Vietnam, Yemen

10 best-in-class

product families

Coronase®, Liquanase®, Savinase®, Stainzyme®, Amplify®, Lipex®, Carezyme®, Celluclean®, Mannaway®, xPect®,

Intensa Evity®, Blaze Evity®

New stabilization

technology Novozymes Evity® is a range of highly robust and stable enzymes

6 enzyme

classes

1 platform of enzyme and microbial technology

Protease Amylase Lipase Cellulase Mannase Pectate Lyase


In emerging as well as developed markets, we see large opportunities for increasing enzyme inclusion in every wash load

Enzyme spend index per wash load

European high-

performance detergent

European average-


U.S. average-performance

detergent

Emerging markets average-


European high-


2008 2014

60

100

50 50

10

Average-performance detergents offer dual opportunities; to

penetrate more brands and to increase performance with enzyme-

including brands (in the EU, 70-75% contain enzymes today; in the

US, 65-70%)

Emerging markets offer vast

opportunities for increasing

penetration (~40% today) and

performance

All European high-performance detergents contain enzymes. Over

time, enzyme inclusion can increase with innovation


Food & Beverages Overview

of sales in 2014

Applications Baking / Starch conversion / Brewing / Beverage alcohol / Healthy concepts Novozymes market share ~40% Competition Dupont, DSM, regional


2.850 3.033 3.186 3.190 3.278

12% 8%

1% 3% 4%

2010 2011 2012 2013 2014

Sales Sales DKKm ORG growth


• Growth in processed foods in

emerging markets

• Food safety and informed

consumption

• Consumer demand for health

and wellness via food

• More convenience in food

preparation

• Food producer focus on cost

optimization and brand

building

• Consolidation of food &

beverage producers

• Sustainability in production

processes, packaging, etc

• High raw material prices

leading to production process

optimizations

• Focus on safe, healthy and

nutritional foods

• Clean labels

• Growth in grain and oil seed

processing

• GDP and population growth in

emerging markets

• Consumer preferences for

traditional foods and

skepticism about technology

in food & beverage production

• Conservative industries

• Fragmented and local markets

and dietary habits

We cover a broad set of end markets and applications – We operate in different parts of the value chain. Revenue-wise, the two parts are comparable

Processing of Ag inputs

A global business with global

solutions

Characteristics:

• Starch processing main

business

• Fewer product categories

• DuPont main competitor

• Fragmented global customer

base

• ~60% direct sales

• ~60% emerging markets

Food products

Product-driven for developed

markets

Characteristics:

• Baking main market

• Many products to many end

customers

• Competition more dispersed

and local

• ~80% direct sales

• ~30% emerging markets

Brewing

Starch processing

Beverage

alcohol

Oils & fats

processing

Juice & wine

Baking

Infant food

Acrylamide

reduction

Low lactose

Flavor

enhancement


Bioinnovation and Novozymes can have a greater impact on consumers and society

Four defining trends set the scope for future growth…

… and define innovation opportunities for the future

Unlock new

substrate streams

Enhance productivity offering

in existing markets

Freshkeeping

Remove

unwanted compounds

Health Emerging markets industrialization

More with less

Consumers wanting more natural foods


Bioenergy Overview

of sales in 2014

Applications Corn ethanol / Biomass conversion Novozymes market share ~60% Competition Dupont + regional niche

35

1.846 1.782 1.748 1.909

2.270

19%

1%

-9%

12% 19%

2010 2011 2012 2013 2014

Sales DKKm ORG growthSales


• Sustainable energy for

transportation as an alternative

to liquid fossil fuels

• Energy security

• Grain-based ethanol producers

looking to maximize yield and

decrease costs

• Advanced biofuels on the cusp

of commercialization

• Political mandates to drive

adoption of biofuels

• CO2 reduction from

transportation sector being

delivered today

• Focus on domestic job,

economy and energy creation

• Increasing cost competitiveness

of biofuels compared to

petrochemical alternatives

• An energy industry with vested

interest in traditional fossil fuels

• Lack of political commitment to

set mandates

• Competition with other

industries and technologies for

feedstock conversion

• Competition with other

transportation technologies for

“best way” to reduce CO2

emissions

• Lack of infrastructure for biofuel

adoption

• Industry conservatism


Ethanol production and outlook in the U.S. – Production has stabilized at 10% of U.S. gasoline consumption + exports

Sources: US Energy Information Agency; annual energy outlook, April 2015, US Department of Agriculture, F.O Licht, Renewable Fuel Association and Houston Biofuel Consultants LLC

0

20

40

60

80

100

120

2011 2013 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039

Ind

ex

Gasoline volumes are stable today. 2040 outlook is for lower volumes driven by mileage standards

0

5

10

15

20

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Billio

n G

allo

ns

U.S. ethanol production volumes have stabilized

0

200

400

600

800

1.000

1.200

1.400

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Millio

n G

allo

ns

U.S. ethanol exports have increased since 2009

0%

2%

4%

6%

8%

10%

12%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

U.S. Ethanol blend:

~10% of gasoline consumption

CAGR +0.3%


New Opportunities – Explore biodiesel and sugar cane • Enzymatic Biodiesel

– Exploring cleaner and cheaper concept • Exploring solutions for sugar cane

14 7

7 2

Bioenergy Strategy Overview

Grain Ethanol (1G) – Drive more yield • Recent introductions delivered significant

yield and value capture • More innovation to unlock higher yields

expected over the coming period

Biomass Conversion (2G) – Enable commercialization • Strong focus on delivering CTec4you

solutions for different pre-treatment processes

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

40

60

80

100

120

140

160

2005 2010 2015 2020

Total production cost development

Enzyme Developments

Enzyme Developments

Enzyme and Process Developments

Other

ethanol Biodiesel

Sugar

cane

ethanol Corn

ethanol 2.70

gal/bu

2.85

gal/bu

3.00

gal/bu

Avantec®,

Spirizyme

Achieve®

& Olexa®

New Innovation

2012-2014 2015-2017

Eth

an

ol yie

ld

per

bu

sh

el o

f co

rn

2013 Global

biofuels production, ~30 bn gallons*


Project pipeline Biomass conversion

Novozymes serves 5 out of 7 commercial facilities

While several biomass conversion ethanol plants are already operating, more than 20 solid biomass conversion

projects are under development globally (not all publicly announced) Different business models: • Co-marketing with Beta

Renewables • Project development • Large strategic partners e.g. Raízen

38

Publicly announced, commercial biomass conversion projects under development by region (Q1/2015)*

Brazil − Raízen

− GranBio

− Rhodia

− CTC

− Odebrecht

− Abengoa

United States − Beta Renewables

− Canergy

− Fiberight

Italy − Beta Renewables

− Maabjerg Bioenergy

− ST1

− Ethanol Europe

− Energo Chemica

India − Beta Renewables

− Hock Lee Group of

Companies

− Teck Guan

− MyBiomass

China − Beta Renewables

− Petro China

− Cofco

− Tianguan Group

− M&G Chemicals

*Non-exhaustive


Agriculture & Feed Overview

of sales in 2014

39

Feed alliance The BioAg Alliance

Applications Enzymes for

nutritive

enhancement of

feed for pigs and

chicken

Microbes for crop yield

enhancement and to

fend off pests and

diseases

Market

share

~20%

(enzymes only)

Leading producer of

inoculants. Small

presence in biopesticides

Competition Dupont, AB

Vista, regional

BASF, Bayer, regional

956

1.371 1.617 1.668 1.728

2%

11% 13%

5% 7%

2010 2011 2012 2013 2014

Sales DKKm ORG growthSales


• Rising demand for food as

population grows

• Pressure on available land to

farm

• Sustainability in farming

• Focus on yield maximization

• Global surge in protein

consumption due to change in

dietary habits

• Increasing consumer

awareness of food supply

origins and integrity

• High input costs for farmers

• Emerging markets’ GDP and

population growth

• Increased demand for food

and protein

• Regulatory requirements for

more sustainable farming

practices

• Consumers demanding better

and more sustainable foods

• Biological solutions at

relatively early stage of

development

• Low pricing for traditional input

and crops

• 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.

40

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


Inoculants hold significant opportunity for market expansion across crops and geographies

Soybean Pulses Alfafa Canola Corn Wheat Cotton Rice Factors driving inoculant growth:

Global Planted Acres1

(5 year avg. 2009–2013) ~ 260m ~190m ~15m ~85m ~425m ~549m ~80m ~400m Market expansion

• Significant opportunity across crops and geographies Inoculants Treated

Acres2 ~55-60% ~ 15% ~50% ~ 5% ~ 5% <1% <1% <1%

BioAg Existing Product Portfolio

Immediate commercial portfolio

• Working from strong starting position with existing commercial products NA

LATAM

RoW

Current Inoculants Treatment Regime

Advantageous commercial footprint

• Monsanto’s broad global footprint enabling upstream distribution and leveraging relationships with distributor and retail channels

Upstream (Seed Company)

Midstream (Distributor/Retailer)

Downstream (Grower)

1. Source: FAO stats and Internal estimates 2. Internal Estimates Strong product position Moderate product position Minor product position No current product position

1

2

3


A unique opportunity…to combine Novozymes’ and Monsanto’s capabilities and establish 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 power of The BioAg Alliance

42

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


Building a stronger offering within animal farming

“To help feed a growing world, we work with partners to develop and drive adoption of proven biological innovations that improve feed efficiency and animal health”

43

Partner model

Novozymes

• Screening & in vitro

• Upscaling & production

• A shared vision • Aligned strategic interests in the project and the product • Willingness to invest • Complementary capabilities

Business development

Adjacency:

enabling

new feed

ingredients

Adjacency:

animal health

additives

(e.g..probiotic

with Adisseo)

Enzymes for

nutritional

enhancement of feed

– a strong core built

over 20 years

• Upgrading of co-and by-products to higher value products, enabling category shifts

• Leveraging existing market access, customer relationships and our strong technical capabilities within raw material processing from adjacent industries

• Enzymatic and microbial solutions for natural growth promotion

• Leveraging large collection of microbial diversity and strong technical capabilities in microbe ecology, analytics and production

Partner

• In vivo & application

• Sales & marketing


Attractive Value Propositions in Animal Feed enzymes

• 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

• 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

• 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

Phytase – phosphate ProAct® – protein Others – energy


Sales Technical & Pharma Overview

of sales in 2014

Applications Textiles / Leather / Pulp & Paper Albumin / Hyaluronic acid / Biocatalysis Novozymes market share ~50% Competition Dupont + regional

45


• Better and more sustainable

drug delivery and formulation

• Technical industries drive for

low cost

• Sustainability in technical

industries

• Non-animal-derived,

recombinant input sources in

pharma

• Better drug delivery dosing

regimes

• Fragmented and chemically

driven technical industries

• Conservatism in pharma

production

• Long and resource-intensive

development cycles in pharma

748 810 710 757

830

-6%

11%

-5%

6% 9%

2010 2011 2012 2013 2014

Sales DKKm ORG growth


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

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

The classic pharma value chain

Novozymes

Drug Discovery Drug Development Manufacturing Distribution Sales and Marketing


Partner Drug PI PII PIII MA Market

Tanzeum/Eperzan (Albiglutide) - GLP1 for Diabetes

rIX-FP - Once weekly for Hemophilia B

Albutropin - Growth hormone deficiency

rVIIa-FP - Novel drug for Hemophilia A+B

Multiple opportunities and potential revenue streams in Pharma from Albumin

Partner Drug PI PII PIII MA Market

MMR Vaccine

IVF media

Surgical sealent

N/A Cardiovascular surgey device coating

N/A Artificial lung/ lung damage

N/A Stem cell media

N/A Anemia

N/A Urology

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

47

+7 projects in pre-clinical to phase 2 with partners such as R-tech Ueno, etc.

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

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


http://www.google.dk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.companyspotlight.com/28885/vitrolife-ab&ei=MZrtVIS7NMSZygP7_YCABQ&bvm=bv.86956481,d.bGQ&psig=AFQjCNES2UFctny_pmVdk5JhLQPwiWq0jw&ust=1424944023485075


New long-term targets focus on world impact

New IMPACT targets

Company performance – the traditional view on sustainbaility

World needs – areas where we can make an impact

Social Environmental

• 10 transformative innovations • 5 partnerships for change • Educate 1 million people • Enable Zymers to develop

• Save 100 million tons of CO2 • Reach 6 billion people with our

biological solutions

Sustainable

raw materials

Resource

efficiency

Product

stewardship

Health &

Safety

Human &

labor rights

Employee

satisfaction

Sustainable

growth Education

Health and

livelihoods

Climate

change

Novozymes’ unique contribution:

Updated operational targets Environment • Energy efficiency • Water efficiency • Reduction in CO2 intensity • Renewable energy • Supplier program • Gold Class RobecoSAM rating • Carbon Disclosure Project A List

People • Occupational accidents • Employee absence • Employee “satisfaction and

motivation” • Employee “opportunities for

development” • Women in senior management

Governance (economic)

Corporate

governance

Business

integrity &

antitrust

Economic

growth

Job

creation

Supplychain

management


Steady improvement in employee metrics

0

2

4

6

8

10

12

We plan to continue our journey of operational excellence

Decoupling resource consumption from economic growth

0%

20%

40%

60%

80%

100%

120%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

% c

han

ge

fro

m 2

00

5 b

as

eli

ne

Sales

Gross profit

Water

Energy

CO2 emissions

2000 2014 2010 2005

1,0%

3,5%

0,5%

2,5%

2,0%

3,0%

1,5%

0,0%

Employee

absence (%)

Occupational accidents

per million working hours


Remuneration Principles for Executive Leadership

• 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 2014, Executive leadership team of 6 received DKK 48 million in remuneration (incl. pension) + DKK 28 million in expensed stock/based incentive programs

Annual remuneration scheme

Long term incentive program (2014-2016)

• Economic profit as measurement • 50% stock options, 50% stocks • Opportunity to double annual remuneration • Maximum clause caps upside (max. cap = 2x

intrinsic value at establishment ex. inflation) • Stock options awarded annually (3-year vesting

period), stocks in 2017 (no vesting period)

0

2

4

6

8

10

12

14

16

18

Mo

nth

s o

f sala

ry p

er

year

Max 2 months ofbase salary cashbonus linked tofulfilment of EBITand sustainabilitytargets

Max 3 months ofbase salary cashbonus linked tofulfilment ofpersonal targets

Base salary

0

10

20

30

40

50

60

70

80

90

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 &

op

tio

ns a

ward

ed

Bn DKK of accumulated economic profit


Cereals:

110 kg CO2 per ton of bread

Detergent:

50-150 kg CO2 per ton of laundry

Beverage:

25 kg CO2 per 1000 litre of beer

Vegetable oil:

44 kg CO2 per ton of oil

Dairy:

230 kg CO2 per ton of mozzarella

Margarine:

23 kg CO2 per ton of hardstock

Animal feed:

80 kg CO2 per ton of feed

Textile:

1100 kg CO2 per ton of fabric

Agriculture:

15 kg CO2 per ton of corn

Leather:

100 kg CO2 per ton of hide

Paper making:

150 kg CO2 per ton of pulp

Cosmetics:

190 kg CO2 per ton of fatty acid ester

Reducing CO2 Emissions Together with our Customers

In 2014, Novozymes helped customers save

tons of CO2 through the application of

Novozymes’ products, equivalent to taking 25 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



Historical Performance Demonstrates Track Record of Delivery – I/II

0%

4%

8%

12%

16%

20%

0

3.000

6.000

9.000

12.000

15.000

2000-2014 sales Sales DKKm Growth

16%

18%

20%

22%

24%

26%

28%

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%

57,4%

50%

52%

54%

56%

58%

60%

Gross margin

4%6%8%

10%12%14%16%18%

Cost ratios S&D ratio R&D ratio Adm ratio


Historical Performance Demonstrates Track Record of Delivery – II/II

0

750

1.500

2.250

3.000

3.750

4.500

8%12%16%20%24%28%32%36%

Free Cash Flow FCF bef. acq. DKKm FCF bef. acq./sales

0%

4%

8%

12%

16%

20%

0

300

600

900

1.200

1.500

CAPEX Capex DKKm CAPEX/sales

0

3.000

6.000

9.000

12.000

15.000

8%

12%

16%

20%

24%

28%

ROIC Inv.Cap. DKKm ROIC, incl. goodwill

-0,2

0,0

0,2

0,4

0,6

0,8

1,0

-500

0

500

1.000

1.500

2.000

2.500

NIBD NIBD DKKm NIBD/EBITDA


Low Exposure to Raw Material Fluctuations

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

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

35%

20%

45%

Split of COGs

56

Raw materials

Energy, utilities & others

Indirect production costs


Dividend and Stock Buyback History

• DKK 3.00 dividend per share paid out for 2014 up 20%, payout ratio 36.6%

• Dividend pay-out ratio to increase to ~40% over next couple of years

• Expected buyback program in 2015 of up to DKK 2 billion

• Accumulated buybacks end of 2014 since IPO were DKK 7.7 billion

• Accumulated dividend and stock buybacks of ~ DKK 13.7 billion since 2000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Buyback 8 424 185 392 847 1.053 1.107 500 0 0 0 400 832 0 2.000

Dividend 124 146 162 217 231 255 278 309 326 358 504 600 687 786 925

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 3,00

0,00

0,50

1,00

1,50

2,00

2,50

3,00

3,50

0

500

1.000

1.500

2.000

2.500

3.000

3.500

Div

iden

d p

er

sh

are

, D

KK

DK

K m

illio

n

Dividend / Buybacks

Dividend Buyback DPS

57

Buyback

Dividend

DPS


Shareholder Distribution

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

• As of December 2014, Novo A/S owns 25.5% of the share capital and controls 70.4% of votes (All A shares & ~10% of B shares)

21%

32% 4%

11%

18%

10% 4%

Shareholder distribution

of B common stock*

*Distribution equals where shares are managed, December 2015

58

Denmark

Rest of world

Novo A/S

North America

Rest of Europe

Own shares

UK


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


Klaus Sindahl

Mobile (DK): +45 5363 0134


Investor Relations Contacts

Further investor relations information is available from the company homepage at www.novozymes.com/investor


Documents

Road Show presentation 1H 2015...This presentation and its related comments contain forward -looking statements, including statements about future events, future financial performance,