Slide 1: Positive end to a challenging year. Pipeline supports return to historical organic growth
Positive end to a challenging year. Pipeline supports return to historical organic growth Conference call - Full year 2016 January 18, 2017
Slide 2: Organic growth: 2016 came in at +2%, EBIT margin highest ever
Organic growth Good progress on strategic priorities 5-year organic growth and DKKm 2016 came in at • Our pipeline of significant market-expanding +4% +7% +7% +4% +2% +2%. EBIT margin opportunities is advancing as planned expanded to the • 4 new products launched in Q4 2016; 8 total 14,002 14,142 la
Slide 3: Novozymes will keep investing in the future of biological solutions
Novozymes will keep investing in Novozymes will maintain a significant R&D investment Long-term targets: level the future of • Progress on adjusting pipeline and innovation programs Return biological to historical • Reallocation of resources to high-growth opportunities solutions and growth markets
Slide 4: Household Care grew 2% in 2016
Household Care Quarterly organic growth and DKKm grew 2% in 2016 Solid sales growth in Q4 taking 2016 to 2% growth +2% +5% +4% -5% +5% driven by U.S. and • This was driven by a strong contribution in Asia from new product launches in the liquid segment and good liquids in China underlying market gro
Slide 5: Technical & Pharma grew 13% in 2016 with solid growth across most segments
Technical & Pharma Technical & Pharma did well in 2016, while Q4 was down Quarterly organic growth and DKKm grew 13% in 2016 +21% +37% +9% +16% -12% • Good uptake of our Pharma enzymes and albumin. We also with solid growth saw increased royalties from GSK’s sale of Tanzeum® across most • In sales t
Slide 6: Bioenergy was up 7% in Q4 and down 3% for the full year
Bioenergy was up Market share in 2016 stable despite intense competition Quarterly organic growth and DKKm 7% in Q4 and 3% -15% -6% -6% -8% +7% • Full-year sales down 3%, despite ethanol production up 3% down ended down in the US, and 2% globally 3% for the full • Continued product trialing by ethan
Slide 7: Agriculture & Feed grew 5% in 2016, driven by strong growth in Q4
Agriculture & Feed 2016 showed solid performance of enzymes for Animal Feed Quarterly organic growth and DKKm grew 5% in 2016, +18% -8% +13% -3% +22% • Animal feed enzyme grew steadily across main markets, driven by strong plus good traction in trialing of our probiotics growth in Q4 • Modest growth
Slide 8: Food & Beverages grew 2% in 2016
Food & beverages Food & Beverages growth driven by emerging markets and Quarterly organic growth and DKKm grew 2% in 2016. sales to the starch industry +4% +2% +4% -2% +4% Beverages and • Strong growth in Asia Pacific, broadly across segments 947 with baking and starch in China as key drivers Starch
Slide 9: Strong pipeline of significant market-expanding growth opportunities
Strong pipeline of significant market- expanding growth opportunities On top of the flow of innovation to existing markets, Novozymes is currently investing in innovation to expand the market for enzyme and microbial technology and thereby grow sales. Most of the innovation programs below have the p
Slide 10: Significant market-expanding growth opportunities in Household Care getting ready for launch
Significant market-expanding growth opportunities in Household Care getting ready for launch Area Innovation Feasibility Discovery Development Launch Commercial Household Care Hygiene solutions Tailored emerging markets Household Care solutions • First product launch in the Hygiene segment towards t
Slide 11: Proof of concept reached in vegetable oil processing; new project in grain milling
Proof of concept has been reached in vegetable oil processing, while we have initiated a new project in grain milling Area Innovation Feasibility Discovery Development Launch Commercial Food & Beverages Vegetable oil processing Food & Beverages Grain milling • Commercial plant trials have been carri
Slide 12: Good progress in major concepts within Agriculture & Feed
Good progress in 3 major concepts within Agriculture & Feed Area Innovation Feasibility Discovery Development Launch Commercial Agriculture & Feed Natural growth promotion Agriculture & Feed Enhanced corn inoculant New transformative Agriculture & Feed BioAg solutions Bioenergy Biomass conversion •
Slide 13: EBIT margin, net profit growth and ROIC targets all reached as guided
EBIT margin, net profit growth and EBIT margin expanded through tight cost control Key financials Realized 2017 outlook ROIC targets all • Underlying gross margin on par with last year (DKKm) FY 2016 January 18 reached as guided • Adjusting for the restructuring in 2016, the EBIT Sales growth Organi
Slide 14: Forward-Looking Statements
Forward-Looking Statements 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, "bel
Slide 15: Positive end to a challenging year. Pipeline supports return to historical organic growth
• Positive end to a challenging year. Pipeline supports return to historical organic growth • Targets for EBIT margin, net profit growth, and ROIC were all achieved in line with guidance in January 2016; cash target exceeded • To invest in growth opportunities, we have to lay off 198 Zymers in other