Roadshow presentation Q1 2021

Roadshow presentation Q1 2021

Released on April 27, 2021

Further investor relations information is available from the company’s website at investors.novozymes.com

2

Table of Content

Roadshow presentation

• Latest results 4

• Equity story 14

• Business overview 27

• ESG overview 53

• Financial overview 60

Disclaimer

Forward Looking Statement

This presentation and its related comments contain forward-looking statements, including statements about future events, future financial performance, plans, strategies and expectations. Forward-lookingstatements 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 anduncertainties 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, industryconsolidation, 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 orbreaches 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-acrecrops; 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, currencyexchange 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. Thecompany undertakes no obligation to update any forward-looking statements as a result of future developments or new information.

3

44

Latest results

Highlights

Stronger-than-expected start to the year; 3% organic sales growth and strong earnings. 2021 outlook maintained

• Organic Q1 sales y/y: 3%.

• Better-than-expected performance due to customer stock building, a faster-than-anticipated recovery in emerging markets, and a better underlying performance in some businesses.

• EBIT margin strong at 29.6%, ROIC incl. goodwill at 23.4% and free cash flow before acquisitions at DKK 0.7 billion.

• Launched three products, including ProAct™ 360 in animal nutrition.

• Closing of Microbiome Labs acquisition; Biota data science platform purchased.

• Consolidation of R&D locations and activities for higher efficiency and focus.

• Amy Byrick and Morten Enggaard Rasmussen joined the executive leadership team on April 1 as new EVPs of Strategy & Business Transformation and People, Sustainability & Brand, respectively.

• 2021 outlook maintained considering timing effects, supply-chain volatility and high COVID-19 uncertainty.

5

Q1 2021 Realized

Q1 2020Realized

Sales performance, organic % 3 10

EBIT margin % 29.6 28.9

ROIC incl. goodwill % 23.4 21.3

Free cash flow before acquisitions DKKbn 0.7 0.8

Latest results

2%

11%

-9%

16%

3%

Agriculture, Animal Health & Nutrition

NovozymesFood, Beverages & Human Health

Household Care Grain & Tech Processing

Bioenergy

0%

Q1 y/y organic sales performance by business area

• Latestresults

• Equity story • Business overview

• ESG overview

• Financial overview

6

Household Care

Latest results

Growth above expectations mainly due to timing, especially in

emerging markets


• Penetration in emerging markets and the rollout of the

Freshness technology in Europe contributed to growth, as

expected.

• Positive effect from customer stock building, especially in

emerging markets, as well as a faster recovery in China.

Organic sales performance (y/y)

33% of sales

11%

Q1’20 Q4’20Q2’20 Q3’20 Q1’21

11%

-1%

0%2%

SDG impact

Our solutions contribute to reducing chemical use and aquatic pollution. Use of enzymes can save 130 kg of CO2

emissions and 50 kg of chemicals per ton of detergent when used as replacement to surfactants in laundry detergents.

2021 perspectives

• Enzyme penetration in emerging markets

• Freshness rollout with broad market launch

• High sustainability focus

• Latestresults


• ESG overview


7

Food, Beverages & Human Health

Latest results

Strong performance, significantly above expectations


• Performance benefitted from customer stock building, faster

emerging market recovery, and a better momentum in

underlying performance.

• Food; strong performance in dairy and protein ingredients

while baking declined, as expected.

• Beverages grew slightly; brewing in modest decline.

• Strong performance in Human Health driven by innovation,

cross-selling and customer stock building.

23% of sales

2021 perspectives

• Food performance driven by innovation and emerging

markets penetration.

• Beverages growing from gradual recovery in brewing.

• Integration of Human Health acquisitions according to plan.

Growth driven by innovation and cross-selling.


Q1’21Q1’20 Q2’20

3%

Q3’20 Q4’20

-5%

11%

-4%

11%

SDG impact

Our solutions contribute to making food production systems more sustainable by improving yields and saving energy and water during industrial processing.In addition, our solutions enable consumers to live healthier lives free from additives, unwanted compounds and by adding dietary beneficial bacteria and enzymes for improved gut health.

• Latestresults


• ESG overview


Novozymes promotes the development and deployment of low-carbon fuels for the transport sector.

Enzymes and yeasts are critical for converting grains and straw into fuel ethanol, enabling a saving of 1100–2200 kg of CO2 emissions per 1000 liters of gasoline.

SDG impact

8

Bioenergy

Latest results

U.S. ethanol recovery continued but remains affected by

COVID-19 restrictions

• Organic Q1 sales y/y: -9%.

• U.S. ethanol demand and production remained weak due to

COVID-19 restrictions. Novozymes’ U.S. business below

external first-quarter estimates for the industry’s production

decline due to a more difficult comparator.

• Growth outside the U.S. mainly driven by Latin America

15% of sales

2021 perspectives

• The U.S. ethanol production expected to gradually

recover as COVID-19 restrictions are lifted.

• Innovation and capacity expansion in Latin America

contributing to growth.

• Full-year performance mainly dependent on the level of

recovery in U.S. ethanol production.

Q1’20 Q2’20 Q3’20

12%

Q4’20 Q1’21

-4%

-36%

-4%

-9%


• Latestresults


• ESG overview


Our solutions in grain processing improve yields and save energy. Our solutions for technical industries help save chemicals, water, steam and electricity. For example, one of our solutions for textile production saves 350 kg CO2 per ton of fabric produced.

SDG impact

9

Grain & Tech Processing

Strong growth, significantly above expectations


• Performance benefitted from customer stock building, faster

emerging market recovery, and a better underlying

momentum.

• Grain; grain milling, vegetable oil processing and starch

processing all supported growth.

• Tech; strong growth driven by textile recovery and sales of

diagnostics enzymes for COVID-19 test kits.

Latest results

16% of sales


2021 perspectives

• Growth in grain led by grain milling and vegetable oil

processing.

• Gradual recovery in global textile production will

contribute to growth in tech.

Q4’20

-9%

Q1’20

9%

Q3’20Q2’20

2%

Q1’21

-4%

16%

• Latestresults


• ESG overview


Our bio-based solutions improve yields in agriculture by improving plants’ access to nutrients in the soil and by improving animals’ access to energy, proteins and minerals in the feed. This saves agricultural land for food and feed production and reduces emissionsto the environment from manure in livestock production. Enzymes can save approximately 130 kg of CO2 emissions per 1000 chickens by increasing the animals’ access to starch in the feed.

SDG impact

10


Latest results

Customer stock building benefitted performance above

expectation


• Performance above expectations due to timing of orders in the

value-chain.

• Growth in agriculture driven by both corn and soy solutions

• Launch of ProAct™ 360 in animal nutrition.

13% of sales

2021 perspectives

• Double-digit underlying growth in agriculture from

expansion across crops and regions.

• Animal health & nutrition sales expected to improve

throughout the year supported by the rollout of

Balancius™.


-19%

Q1’21Q3’20Q1’20 Q2’20 Q4’20

8%

27%

-6%

0%

• Latestresults


• ESG overview


11

Financials – Performance Q1

Stronger start to the year than expected. 3% organic sales growth and 29.6% EBIT margin

• Organic Q1 sales y/y: 3%. DKK sales flat including 3pp net negative impact from currencies and M&A.

• Integration of recent Human Health acquisitions progressing well and according to plan.

• Gross margin at 58.2% — 110bps above last year despite currency headwinds, driven by higher

production efficiency and productivity improvements; recent acquisitions also beneficial.

• EBIT margin at 29.6% — 70bps above last year, driven by higher gross margin and higher other

operating income, somewhat offset by higher R&D costs, currency headwinds and negative

acquisition-related effects.

• Solid free cash flow before acquisitions at DKK 0.7 billion.

• ROIC incl. goodwill at 23.4% — driven by higher net profit and despite higher average invested capital.

Latest results

Key financials Q1 2021 Q1 2020

Sales performance, organic % 3 10

Gross margin % 58.2 57.1

EBIT margin % 29.6 28.9

ROIC incl. goodwill % 23.4 21.3

Net investments excl. acquisitions DKKbn 0.2 0.1

Free cash flow before acquisitions DKKbn 0.7 0.8

• Latestresults


• ESG overview


12

Outlook 2021

Outlook maintained across key parameters

• The better underlying momentum in the first quarter in some businesses does not change the full-year sales

outlook due to timing factors, supply-chain volatility and continued COVID-19 related uncertainty.

• Organic sales growth of 2% to 6% — ~1pp less in reported DKK net of currency and M&A.

• EBIT margin at 25% to 26% — including ~2pp negative year-on-year currency and M&A-related effects.

First quarter one-offs, net, benefit full-year EBIT margin, still maintained within range.

• FCF before acquisitions at DKK 2.7 to 3.1bn.

• ROIC incl. goodwill at ~19%.

Latest results

2021 outlook April 27* February 2

Sales performance, organic % 2 to 6 2 to 6

EBIT margin % 25 to 26 25 to 26

ROIC (including goodwill) % ~19 ~19

Free cash flow before acquisitions DKKbn 2.7 to 3.1 2.7 to 3.1

For modeling purposes:

Effective tax rate % ~20 ~20

Net financial costs DKKbn ~ 0.075 ~ 0.05

Net investments DKKbn 1.0 to 1.2 1.0 to 1.2

Stock buyback program DKKbn up to 1.5 up to 1.5

*Assumes constant currencies from the time of this announcement and for the remainder of the year

• Latestresults


• ESG overview


13

Summary

Stronger-than-expected start to the year; 3% organic sales growth and strong earnings. 2021 outlook maintained

• Better-than-expected performance in the first quarter due to customer stock building, a faster-than-anticipated recovery in emerging markets, and better underlying performance in some businesses.

• 2021 outlook maintained considering timing effects, global supply-chain volatility and COVID-19 uncertainty.

Latest results

Better businesswith biology

• Latestresults


• ESG overview


1414

Equity story

Novozymes – the world leader in BioinnovationInnovation-driven company with strong financials, market leadership and world-class ESG profile

15

Equity story

• Latest results


• ESG overview


10

28%

2

4

10%0

6

8

12

14

16 30%

12%

14%

16%

18%

20%

22%

24%

26%

2020

DK

Kb

n

2010 201420132011 2012 2015 2016 2017 2018 2019

Sales (left axis) EBIT margin (right axis)

+10 years of innovation-driven growth and margin expansion

Market leader

Strong financials*

R&D at the core

• EBIT margin of 26%

• ROIC incl. goodwill of 19%

• Cash-flow-to-Sales ratio of 24% **

* 2020 realized numbers** Free cash flow before acquisitions

• Market leader and strong positions across business areas

• Serving +30 industries

• >1,500 people employed in R&D

• ~14% of sales invested in R&D*

• >6,500 granted or pending patents

Our products are used in +30 industries across 140 countriesWe launch 15-20 new products annually

16

Equity story

• Latest results


• ESG overview


Agriculture & Industrial BiosolutionsIn Agriculture and Industrial Biosolutions, we focus on improved performance in agriculture and industrial processes, including higher yields, less waste and better health for plants and animals.

Consumer BiosolutionsConsumer Biosolutions unites consumer-facing industries at the front of the value chain such as Household Care, Baking, Beverages, Food and Protein, with a focus on making consumer products better, healthier and higher performing, based on clear end-consumer needs.

The world leader in industrial enzymes and microbes across the value chainWe are uniquely positioned to drive innovation opportunities

17

• Strong R&D organization and broad technology platform supports continued product development

• Forefront of technology to secure our leading position through innovation allowing for massive parallel screening: bigger libraries, better answers

Best-in-class productionInnovation leadership Diversified global presence

• Cutting-edge protein engineering improves enzyme efficacy

• Genetic engineering of host organisms and production process optimization is driving higher throughput

• Highly skilled technical sales and service teams enables long-standing customer relationships

• Highly diversified selling to +2,000 customers covering +30 industries in ~140 countries

Equity story

Increased pipeline selectivity to accelerate time to market from ~5 years to ~3 years

The world’s largest producer of fermented proteins. Efficiency gain have doubled the available capacity

Market leader and strong positions across business areas

2X

1. Novozymes market share within industrial enzymes

• Latest results


• ESG overview


Novozymes is about turning amazing science into sustainable biological solutions

• Capitalize on critical mass and expertise to develop new cutting-edge technology and innovation

• Enable cross-fertilization to leverage innovation and synergies across industries

• Secure technology leadership through continued investments and technology scouting

18

2017

17

2015 20192016 2018 2020

18

20

13

20

18

Non-public

Public

Balanced customer-approach to new product launches

We continue to find new uses for our technology within existing industries

Household Care case

Protease

Amylase

Lipase

Cellulase

Mannanase

Pectatelyase

Freshness

BuildInternally generated ideas

BuyUniversities, incubators and

start ups

Borrow (collaborate)

Customers and partners, Hello Science

Novozymes’ stage-gate model secures an efficient and standardized evaluation of new pipeline candidates

Equity story

CommercialLaunchDevelopmentDiscoveryFeasibility

• Latest results


• ESG overview


Enzyme technology improves Novozymes’ gross margin and profitabilityWe re-invest 13-14% of sales into R&D projects for product innovation and productivity improvement

19

Equity story

Process innovation

1. Improve production strain

Micro-organismsRaw materials

Fermentation

FormulationPurification

2. Optimize industrial production

3. Improve enzyme efficacy

Technology development

Molecular biologyStrain development using protein engineering, genetic modification, DNA sequencing, etc.

Bio-informatics & Systems biologyApplication of computer algorithms in the computational discovery of enzymes in DNA databases

Screening systemsApplication of high-throughput robotics to find the best enzyme candidates

Industrial-scale fermentationProduction of enzymes and proteins whilst continuously optimizing and improving yields

1/3

Product innovation

2/3

Customer needs• Fight for profitability• Global race for consumer preferences• More regulation and standards

Planet needs• Global climate change• Societies stuck on oil• Biodiversity under threat

Consumer needs• Nine billion people by 2050• Increasing urbanization• Growing demand for food, water and health

• Latest results


• ESG overview


Solid global presenceDecentralized R&D meets local needs faster and better

20

Latest results

32%of 2020 sales

North America~1,200 FTE’s

HQ, Multi-purpose production, R&D-1%5Y avg. organic

sales perf.

39%of 2020 sales

Europe, Middle East & Africa~2,800 FTE’s

HQ, Multi-purpose production, R&D

+3%5Y avg. organic

sales perf.

20%of 2020 sales

+3%5Y avg. organic

sales perf.9%of 2020 sales

+4%5Y avg. organic

sales perf.

• Latestresults


• ESG overview


Asia Pacific~1,800 FTE’s

Multi-purpose production, R&D

Latin America~300 FTE’s

Regional production

Main sites with production and R&D

Satellite production site

Satellite R&D site

Emerging markets 34% of 2020 sales

Developed markets 66% of 2020 sales

Uniquely diversified group creating synergies and opportunitiesWe launch technologies in five main business areas

21

4%

2017

-1%

2.4

2016 2018

8%

3%

2019

1%

2020

2.6 2.72.6 2.8

20202018

2%

9%

2019

2.37%

2.5

2016 2017

-9%

-1%

2.42.1 2.0

5%

-5%

2016

-3%

2017

3%2.1 1%

2018 2019 2020

2.2 2.0 1.9 1.8

12%

2019

-3%

2016

2.4

0%

11%

2017 2018

-9%

2020

2.7 2.8 2.92.5

Household Care Food, Beverages & Human Health

Bioenergy Grain & Tech Processing

LaundryAutomatic dishwash

Hand dishwashProfessional cleaning

BakingFood & protein

BeveragesHuman health

Conventional biofuelsBiomass conversion

Biodiesel

Grain milling & starch processing Distilling

Vegetable oil processing Textile, Leather and Forrest

Water

BioAgricultureAnimal health

Animal nutrition

Equity story


Sales in DKKbn and organic sales performance Sales in DKKbn and organic sales performance Sales in DKKbn and organic sales performance Sales in DKKbn and organic sales performance Sales in DKKbn and organic sales performance

• Latestresults


• ESG overview


35% of 2020 sales 20% of 2020 sales 13% of 2020 sales18% of 2020 sales 14% of 2020 sales

20182017

2%

2016

1% 1%0%

2019

5%

2020

4.7 4.7 4.6 4.8 4.9

Delivering sustainability impact through our productsWe are reducing CO2 emissions together with our customers

22

Paper making

150 kg CO2per ton of pulp

Beverage

25 kg CO2per 1000 liters of beer

Animal feed

130 kg CO2per 1000 chicken

Leather

50 kg CO2per ton of hide

Textile

350 kg CO2per ton of fabric

Biomass based biofuel

2200 kg CO2per 1000 liters of ethanol

Agriculture

15 kg CO2per ton of corn

Detergent

100 kg CO2per ton of laundry

Vegetable oil

44 kg CO2per ton of oil

ESG overview

Enabling a low carbon future

Fewer chemicals, cleaner water

Enabling customers to produce more from less

In 2020, we saved 49 million tons of CO2 by enabling low carbon fuels in the transport sector.

In 2020, we managed to reach 3.98billion people with our laundry solutions that help reduce chemicals and aquatic pollution.

In 2020, we estimate that 136,000 tons offood was gained using our solutions.

• Latest results


• ESG overview


These reductions are estimates from third party reviewed Life Cycle Analysis studies for representative products in Novozymes

Historical performance demonstrates delivery track record

23

Sales performance Net working capitalEBIT margin

0%

10%

20%

30%

40%

1

0

3

2

7

4

5

6

28.1%28.3%

DKKbnEBIT

margin

2016

22.3%

2011

24.4%

2012 2020

24.7%

27.9%

2013

27.2%

2014

27.7%

2015

27.9%

2017 2018 2019

26.1%

EBIT margin EBIT

-10%

0%

10%

20%

15

0

20

5

10

2019

-1%

DKKbnOrganic sales performance

7%

2011

4% 4%

2012 20152013

7%

2014

7%

2%

2016

4%

2017

4%

2018

0%

2020

Organic sales performance Sales

5%

10%

15%

20%

25%

30%

6

1

3

0

2

4

5

7

19%

15%

19%

23%

DKKbnNWC/Sales

2011

21%20%

2012 2013

9%

2014

12%

2015 2016

14%

2017 2018

24%

2019 2020

NWC/Sales NWC

Net interest-bearing debt

0.30.4

0.2

0.1

0.2

0.3

0.8 0.8

-0.4

-0.2

0.0

0.2

0.4

0.6

0.8

1.06

4

1

-1

5

0

2

3

NIBD/EBITDA

-0.2

20182011

DKKbn

20172012 2013 2014 2015 2016

0.5

2019 2020

Net interest-bearing debtNIBD/EBITDA

33% 34% 36% 37% 38% 39%42%

45%47%

52%

1

0

4

3

2

5

6

7

50%

0%

60%

10%

20%

30%

40%

3.5

DKKbn

3.3

20182011 20132012 2014 2015 2016 20192017 2020

1.0

1.5

3.0

0.8

2.9 3.1 3.23.4

Payout ratio

Payout ratio (right axis)Buyback Dividend

Shareholder payoutFree cash flow before acquisitions

0%

10%

20%

30%

40%

6

0

3

1

2

7

5

4

2012 2020

DKKbnFCF before acq.

/Sales

13%

2011 2018

14%

1.6

2017

15%

2013

34%

2014*

17%

2015

19%

2016

17% 16% 15%2.3

2019

24%

1.41.8

4.2

2.72.22.4 2.3

3.4

FCF before acq./Sales

FCF before acq.

Equity story

* BioAg Alliance initiation

• Latest results


• ESG overview


Finding sustainable answers to the world’s problems is core to NovozymesWe are gearing the business for sustainable growth

24

Equity story

Sustainable agriculture

Water scarcity

Shifting demographics

Energytransition

Digitalizationand automatization

• Latest results


Commercial investments

• Broader commercial footprint and customer innovation hubs in India, China and Turkey driving penetration in emerging markets

• Digitalization of basic sales and technical service tasks will allow more time to raise the bar for each customer

Innovation platform roll-outs

• The Freshness platform is the most revolutionary Household Care innovation in the past +20 years

• Improving animal health by way of biological solutions is good for business and good for animal wellbeing

• Responsible production of vegetable oils is key to cleaner and more sustainable foods

Strategic opportunity areas

• Increasing health and wellbeing with clinically proven products for human oral and gut health

• Feeding the world by providing alternative specialty protein for food ingredients via fermentation

• ESG overview


Measuring our future success‘Better business with biology’ mid-term targets 2020-2022

25

BusinessWorld Zymers

CLIMATE

Save 60 million tons CO2

by enabling low-carbon fuels in the transport sector in 2022

WATER

Reach > 4 billion peopleby providing laundry solutions that replace chemicals in 2022

PRODUCTION & CONSUMPTION

Gain 500,000 tons of food

by improving efficiency from farm to table in 2022

Organic sales growth

5+% per year

EBIT margin

28% or higher by 2022

ROIC incl. goodwill

23% or higher by 2022

Model assumptionsNet working capital/Sales (improving as % of sales)Net investments/Sales (8% or below)Effective tax rate (21-22%)NIBD/EBITDA (~1x)Dividend payout ratio over the coming years (~50%)

Enable learningScore survey in 2022

Nurture diversity

Score 86 in our diversity index by 2022

Ensure wellbeingImprove safety by reducing the number of accidents by 2022

Inspire the worldPledge 1% of our time to local outreach activities by 2022

Equity story

• Latest results


• ESG overview


World leader in BioinnovationGlobal leadership in enzyme and microbe development arise through a combination of competitive advantages

26

Equity story

• Latest results


• ESG overview


Innovation leadership

Best-in-class production

Diversified globalpresence

4

10

12

16%

14

0

16

8

12%2

6

24%

10%

14%

18%

20%

22%

26%

28%

30%

2012

DK

Kb

n

2010 202020152014 201920172011 2013 2016 2018

Sales (left axis)

EBIT margin

R&D/Sales

ROIC

+10 years of innovation-driven growth and margin expansion

* 2020 realized numbers

Unique sustainability profile*

• 3.98 billion people reached with our laundry solutions that replace chemicals and contribute to cleaner water

• 49,000,000 tons of CO2 emissions saved in global transport

• 136,000 tons of food gained by improving efficiency from farm to table

Mastering the full value chain

2727

Business overview

Household Care

Our solutions contribute to reducing chemical use and aquatic pollution. Use of enzymes can save 130 kg of CO2 emissions and 50 kg of chemicals per ton of detergent when used as replacement to surfactants in laundry detergents.

SDG impact

28

Laundry

Automaticdishwash

Hand dishwash

Professional cleaning

The value we create

Innovative brands help grow your market share. We work with you to ensure our biological solutions make your products stand out

Deal with complex hygiene issues

Eliminateharsh chemicals

Save energy, water, time

Decrease dose, increase performance

Preserve fabrictexture, color

Remove stains,boost whiteness

• Latest results


• ESG overview


29

Household Care overview

Key trends

• Strong interest in freshness solutions for the removal of malodor and grime in clothing

• Renewed industry focus on sustainable detergents by replacing chemicals with biological alternatives

• Increased focus on household cleaning during COVID-19 pandemic

• Compaction of laundry detergents remains a strong trend, driven in part by increased sales through online retailers

• Growing consumer and professional interest in microbial and bio-based cleaning solutions

Growth drivers

• Higher enzyme inclusion and innovation addressing key consumer pain points e.g. improved wash performance also at low temperatures, improve sustainability profile and enabling optimized formulations

• Demand for better-performing products, GDP and population growth in emerging markets

• Increasing investor, regulatory, customer, retailer, and consumer focus on sustainability and ingredient transparency

Growth barriers

• Traditional consumer washing habits, e.g. high temperatures

• Middle-class consumers’ ability to differentiate brand performance

• Regulations favoring surfactants over enzymes in emerging market product standards

• Sustained low petrochemical input costs reducing the adoption rate of high-performance enzymes

5Y average organic sales performance

+2%

0%

1%

2%

3%

4%

5%

4.0

3.5

5.0

4.5

2%

2016

4.6

DKKbnOrganic salesperformance

1%

2017

0%

4.8

2018

1%

2019

5%

2020

4.7 4.7

4.9

5Y sales overview

35%of 2020 sales

Business overview

• Latest results


• ESG overview


30

Growth driver Freshness platform Lifestyle changes are spurring demand for freshness, and we are on track to deliver DKK 1bn

Consumers’ lifestyle changes are the drivers of growing hygiene needs…

Colder and shorter wash cycles

Shift in detergent format preferences

Increase in synthetic fabrics

Urbanization increasing density

(Reoccurring) malodor formation

Yellowing & greying/ color dullness

Layers of build up human body grime

Sources: Novozymes consumer study; Euromonitor, Jan 2018; Mintel GNPD, April 2018; UNFPA, April 2018; Grand View Research; April 2018

…which center around issues of odor and grime left on clothes even after wash…

…are key consumer concerns identified by Novozymes

Business overview

• Equity story • ESG overview

• Latest results


• Business overview

31

Growth driver Enzyme inclusionWe see large potential for future enzyme inclusion, especially in emerging markets

Significant up-dosing and penetration potential in emerging markets in general and in Asia Pacific in particular

0

20

40

60

80

100

10

6

0

14

2

4

8

12

Bill

ion

to

ns

Do

sin

g (i

nd

exed

)

Western Europe North America Middle East and Africa

Latin America Eastern Europe Asia Pacific

5x volume opportunity

7x enzyme up-dosing opportunity

Detergent volume (left axis) Enzyme dosing index

Sources: Euromonitor, May 2019; Novozymes analysis

• Strong and expanding sales presence and operational footprint in emerging markets

• Strategic focus on developing emerging market-specific solutions

• Innovation hubs in China, India and Brazil

• Partnership with Givaudan enabling broader access to target customer base and development of innovative solutions

Presence and emerging market solutions to unlock potential

⚫⚫

⚫⚫

⚫

⚫ Innovation hub ⚫ Sales office

⚫

⚫⚫

⚫

⚫⚫

⚫⚫⚫ ⚫ ⚫

⚫

Business overview

• Latest results


• ESG overview


32

Growth driver Detergent compactionWe believe enzymes can contribute even more to a detergent and to compaction

Surfactants

Enzymes

Polymers

Builders

Perfume

Other

Sources: IHS chemical 2014; Euromonitor, 2019; expert interviews, 2019 *EU representative example, value as percentage.

Surfactants

Multienzymes

Polymers

Builders

Perfume

Other

• Using new as well as existing enzymes in higher dosage to keep cleaning performance in lower surfactant environment

• Using enzymes to compensate for performance loss when reducing pH level and the need for builders

• Freshness solutions to reduce the need for perfume

• Enzymes to replace polymer functions, such as fabric care and whiteness

Business overview

• Equity story • ESG overview

• Latest results


• Business overview

Food, Beverages & Human Health

Our solutions contribute to making food production systems more sustainable by improving yields and saving energy and water during industrial processing.In addition, our solutions enable consumers to live healthier lives free from additives, unwanted compounds and by adding dietary beneficial bacteria and enzymes for improved gut health.

SDG impact

Optimize raw material use

Meet demand for new product claims

33

Baking

Food & protein

Beverages

Human Health

The value we create

Consumer trends in the Food & Beverages space are constantly evolving. Stay ahead using leading biological innovation to both meet demand with new product claims and by getting more out of your raw materials.

Freshnessand taste

Health, safety and sustainability

• Latest results


• ESG overview


34

Food, Beverages & Human Health overview

Business overview

+3%

5Y sales overview

20%of 2020 sales

2

3

2%

0%

-2%

6%

8%

10%

4%

2.8

2017

DKKbn

2.4

2019

2.7

8%

Organic salesperformance

-1%

2016

4%

2018

3%

1%

2020

2.62.6

Growth drivers

• Demand for better and more convenient food with awareness about food safety and “naturally healthy” products

• Increasing demand for vegetable proteins

• Growing demand for probiotics and other biological health solutions fueled by aging demographic, better consumer understanding and stronger product health benefits

• Optimization of Emerging Market food value chains

Growth barriers

• Conservative industries with consumer preference for traditional foods

• Consumer and industry skepticism about technology in food and beverages production

• Fragmented local markets and dietary habits as well as regulation


• Latest results


• ESG overview


Key trends

• Strong consumer demand for new plant-based proteins drives industry innovation

• Focus on improved product quality and taste

• Consumers demand better and more convenient food with attention to natural, healthy and sustainable ingredients

• The healthcare industry is pivoting from symptoms treatment towards preventive measures with biology as a key part of the solution

35

Growth driver Human HealthNovozymes entering the attractive dietary supplement market through organic and inorganic growth

Business overview

• Latest results


• ESG overview


Novozymes OneHealth will help people live healthier and better lives by rethinking tomorrow within human health, and finding the one-in-a-trillion verifiable solutions of probiotics and enzymes that can be proven to solve profound health challenges related to modern lifestyles.

2020Acquisition of

Acquisition of

Public announcement of

2019Human health as a strategic opportunity area

2016Acquisition of

Novozymes OneHealth will help people live healthier and better lives by rethinking tomorrow within human health, and finding the one-in-a-trillion verifiable solutions of probiotics and enzymes that can be proven to solve profound health challenges related to modern lifestyles

36

Growth driver Human Health Strong innovation engine and multichannel strategy deliver products for consumer health

Business overview

• Latest results


• ESG overview


Strategic portfolio addressing broad health categories

Oral Care

Digestive and Gut Health

Immune Health

Metabolic Health

Cognitive Health

With multichannel strategy represented by the 3 brands

B2B

B2C

37

Growth driver Alternative Specialty ProteinFermentation-based specialty protein ingredients to address consumer needs

Business overview

• Latest results


• ESG overview


Consumers are actively looking to replace animal-based proteins, mainly due to concerns on

Health Sustainability

Yet many consumer feel current alternatives require compromises on

Taste Nutrition

Fermented-based protein ingredients and food products can address current unmet needs

Bioenergy

Novozymes promotes the development and deployment of low-carbon fuels for the transport sector.

Enzymes and yeasts are critical for converting grains and straw into fuel ethanol, enabling a saving of 1100–2200 kg of CO2 emissions per 1000 liters ofgasoline.

SDG impact

38

Conventionalbiofuels

Biomassconversion

The value we create

You work hard to create the most value at the lowest cost and to stay flexible enough to adapt to changing markets. We work hard to deliver solutions and services that will help you succeed

Eliminate operation stress

Superior viscosity reduction

Reduced chemical spend

Yield improvement

• Latest results


• ESG overview


Biodiesel

39

Bioenergy overview

Key trends

• US ethanol industry is under strong pressure due to the COVID-19 pandemic induced drop in gasoline consumption, the many small refinery exemptions from blending mandates and reduced exports due to trade barriers

• Climate change is high on public agendas, leading to growing demand for clean energy

• Follow-through on increased biofuel mandates and capacity expansions in key emerging markets

+2%

5Y sales overview

18%of 2020 sales

-10%

-5%

0%

5%

10%

15%3.0

2.3

2.9

2.4

2.5

2.8

2.6

2.7

0%

-5%


2016

11%

2017

-3%

2018

2.7

2019

-9%

2020

2.4

2.8

2.9

2.5

Business overview

Growth drivers

• Industry consolidation and focus on process economics driving demand for biological solutions that enhance yield

• Innovation for yield enhancement and chemical cost reduction remains a strong differentiator

• Demand for reducing CO2 emissions in transport sector

Growth barriers

• Inconsistent political commitment to set and enforce blending mandates

• An energy industry with a vested interest in traditional fuels

• Competition with other transport technologies for “best way” to reduce CO2 emissions

• Competition with other industries and technologies for feedstock conversion


• Latest results


• ESG overview


40

Market BioenergyMarket growth likely to be centered in Latin America

⁓1.5bn

⁓16bn

⁓9bn

⁓0.9bn

⁓0.5bn

ChinaAmbition to achieve E10 likely to see reduced focus

European UnionKey legislation: Renewable Energy Directive

IndiaGovernmental push for public

investment in 1G and 2G

Latin AmericaKey legislation: RenovaBio

North AmericaKey legislation:

Renewable Fuel Standard

Business overview

⚫ = Production in bn gal per year

• Latest results


• ESG overview


41

Case Ethanol production

-0.2

-0.1

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

2016 2019

Co

ntr

ibu

tio

n m

argi

n (

USD

per

gal

)

2015 2017 2018 2020

28

22

14

16

24

18

26

20

2017 20202019

Bar

rels

in m

illio

ns

2015 2016 2018

25

0

5

35

10

30

15

20

40

Bill

ion

gal

lon

s

6.87.2

14.8

20162015

15.4

6.9

29.1

15.9

2017

7.9

16.1

2018

8.6

15.8

2019

25.8 26.2 26.828.6

EURest of World China Brazil US

US ethanol inventoriesPrice developments for ethanol and corn

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

2017 20202018

USD

per

gal

/bu

2015 2016 2019

Ethanol Corn

Global ethanol production US ethanol producer margin

Business overview

Sources: Renewable Fuels Association (RFA), Center for Agricultural and Rural Development (CARD), Iowa State University, and U.S. Energy Information Administration (EIA). Data on 2020 global ethanol production to be released from the RFA later in the year

• Latest results


• ESG overview


2021 2021

2021

42

Growth driverTailoring biology to maximize output for each plant

Business overview

The ethanol process

• Enzymes are applied in multiple stages, along with yeast in fermentation

• Using our data insights we deliver custom fermentation solutions, tailored to a plant’s unique operating conditions

1. PastBasic products for liquefaction and saccharification

2. PresentMultiple offerings across liquefaction, saccharification and now also yeast

3. FutureIncreasingly customized solutions that pair yeast & enzymes, novel solutions for fiber ethanol and protein

Convert feedstock into fermentable sugars Ferment sugars to EtOH

Slurry Jet cooker Liquefaction Fermentation Distillation Ethanol

SaccharificationLiquefaction

From standard to more customized solutions

• Latest results


• ESG overview


Grain & Tech Processing

Our solutions in grain processing improve yields and save energy. Our solutions for technical industries help save chemicals, water, steam and electricity. For example, one of our solutions for textile production saves 350 kg CO2 per ton of fabric produced.

SDG impact

Textile, Leather and Forrest

Vegetable oil processing

43

The value we create

We help optimize starch and grain processing, improve industry profitability and produce the highest value output possible. In the technical areas, our enzymatic and microbial solutions target customers’ unmet needs across global markets and reduce water and energy consumption.

Biological water treatment

Improve the strength of your fabric

Longer-lasting and more sustainable

textiles

Reduced chemical usage

• Latest results


• ESG overview


Grain milling & starch processing

Water

Distilling

Productivityand yield

New substratestreams

44

Grain & Tech Processing overview

Key trends

• Focus on cost reduction, process optimization and yield enhancement including higher protein extraction from grain processing

• Increased demand for sugar replacement

• Water scarcity and pollution driving legislation and demand for solutions that reduce water consumption and improve water quality

• Increased public interest for sustainability in fashion leading to consumer pull and renewed interest for biological alternatives to the harsh chemicals currently being used

+2%

5Y sales overview

14%of 2020 sales

-10%

-5%

0%

5%

10%

15%

1.6

1.7

1.9

1.8

2.0

2.3

2.2

2.1

2.4

2.5

2017

2.4


9%

2016

7%

2%2.1

2.5

2018

-9%

2019

-1%

2020

2.3

2.0

Business overview

Growth drivers

• Demand for optimization of starch processes continues in current environment

• Demand for animal protein substitutes

• Consumer demand for improved textile quality and longevity drives focus on sustainability in textiles

• Demand for wastewater solutions due to increasing water scarcity and pollution cleanup regulations

Growth barriers

• Outside grain, fragmented and chemically-driven technical industries

• Water prices potentially so low that there is no incentive to invest in water-saving solutions

• Price-driven acceptance of low quality textiles and raw materials in emerging markets

• Preference for lower-cost, chemical solutions to enable market growth


• Latest results


• ESG overview


45

Growth driver The grain value chain

Grain milling Starch processing

Corn

Liquefaction

LpHera®

Isomerization

Sweetzyme®

Saccharification

Extenda®

Secura®

Starch slurryfrom wet mill

Gluten

Fiber

Starch

Milling

Frontia®

Purification

Maltose syrups

Mixed syrups

Glucose syrups

Refining

Fructose syrups

Starch

Wet

mill

Ref

iner

y

Novozymes offers multiple solutions across the value chain

• Significant presence in starch. Industry leaders in enzymatic starch conversion for sweeteners

• Portfolio that includes LpHera®, Extenda®, Secura® and Sweetzyme®

• Frontia® opens a new opportunity with our starch customers in wet milling, enhancing the yield of key value streams in protein and starch

Business overview

• Latest results


• ESG overview


46

Growth driver Vegetable oil processing Enzymatic applications for vegetable oil processing has vast potential

Oilseed

• Cooking oil• Margarine & shortenings• CBE• OPO, etc.• Low transfat & 3-MCPD

• Fatty acids• Fatty alcohols• Food & non-food additives• MCT

End products

Business overview

RefineryRefining

MillExtraction

Specialty fats producerSpecialty oils & fats

Oleo playerOleochemicals

New agro-processing applications

• Novozymes offers multiple solutions across the value chain (i.e., from higher yields in oil extraction & refining to transformation of oils & fats into specialty products for Food, HPC and industrial applications)

• Improving efficiency (process optimization and yield enhancement) in vegetable oil production is a >DKK 1bn opportunity

• Replacing chemical catalysts for specialties applied into Food, Nutrition, Personal care and Industrial applications is a >DKK 400m opportunity

• Our enzymatic solution for the production of Biodiesel from waste oils & fats has been adopted by +10 plants over the last 2 years and we believe we have a scalable business model for next wave of Biodiesel plants (DKK 400m)

• NZ overall market penetration today is less than 5%

• Latest results


• ESG overview



Our bio-based solutions improve yields in agriculture by improving plants’ access to nutrients in the soil and by improving animals’ access to energy, proteins and minerals in the feed. This saves agricultural land for food and feed production and reduces emissionsto the environment from manure in livestock production. Enzymes can save approximately 130 kg of CO2 emissions per 1000 chickens by increasing theanimals’ access to starch in the feed.

SDG impact

Animal health

Animal nutrition

47

BioAgriculture

The value we create

Enzymes and microbes are nature's own perfect tools. We put them to work in agricultural solutions that increase the efficiency of crop and livestock production.

Improve feed and gut functionality

Improve animal gut health

Bioyield enhancement

Powerful protection

• Latest results


• ESG overview


48

Agriculture, Animal Health & Nutrition overview

Key trends

• World population growth and changing dietary habits affecting demand for protein and other food sources

• Stricter regulatory requirements for more sustainable farming practices and animal welfare with less use of antibiotics

• Continued focus on animal nutrition, soil health and agricultural yield efficiency

0%

5Y sales overview

13% of 2020 sales

-10%

-5%

0%

5%

1.7

2.3

1.8

1.6

2.4

2.1

1.9

2.0

2.2

20182017


5%

2016

1.8

2.2

-3%

3%

-5%

2019

1%

2020

2.1

2.0

1.9

Business overview

Growth drivers

• Governments in emerging economies focusing on agriculture productivity

• Increased demand for alternatives to chemical pesticides and fertilizers

• Regulatory requirements for more sustainable farming practices as well as focus on animal welfare and reduction of antibiotics

• Increased demand for food and protein due to changes in dietary habits

Growth barriers

• Low pricing for traditional fertilizers, pesticides and crops

• Incomplete scientific understanding of plant and animal microbiome

• Fragmented and complicated regulation in local markets


• Latest results


• ESG overview


49

Case Our BioAg setup

Business overview

• Latest results


• ESG overview


We have increased our focus on biocontrol to

complement our leading bioyield technology base

BIOYIELDEnhance plant nutrition and

stimulate plantgrowth

BIOCONTROLControl of insects

and microbial diseases

Commercial and innovationcollaboration

Future development and commercial relationships

Enzyme biocontrol (diamides and ASR)

Commercial partnership for downstream products in Canada

Commercial and innovation partnership, including in upstream corn

Taegro biofungicide global partnership

50

Case We are committed to our core technologies and partner with industry leaders to win

Feed and animal gut health enzymes

Bacillus for monogastrics

Hatchery probiotics

Natural solutions for ruminants

We develop and commercialize these technologies together with our partners, who are leading players in their respective industry

Enzymes

• Full portfolio of feed enzymes through DSM Alliance

• Recently launched game-changing innovation

• Improve the sustainability of livestock production

Probiotics

• Growing area for Novozymes with pipeline of products

• Alterion® tracking well

• Support the trend of reducing antibiotic use in animal farming

Business overview

• Latest results


• ESG overview


51

Case Scientific evidence supports enzyme penetration We enable livestock farmers to reduce feed costs

Market is sensitive to feed and meat price changes

Low margins leave the producers with different options

Scientific education of customers to increase penetration

70% of the total cost of poultry production is feed including additives which accounts for around 5%

Poultry producer margins are low when:

• Feed prices are high• Meat prices are low

Feed formulation is an art and the nutritionist is often the decision maker. The scientific and nutritional philosophies combined with commodity prices determine enzyme inclusion levels

During tough conditions, producers see two options:

• Cost out = reduce enzyme inclusion • Increase efficiencies = increase enzyme inclusion

The degree of enzymatic and nutritional understanding determines the decision:

• Advanced/’modern’ customers increase enzyme inclusion

• Simple/traditional customers reduce enzyme inclusion

• Enzyme inclusion increases the efficiency of poultry producers

• Lack of scientific understanding drives uneconomical customer decisions

Business overview

• Latest results


• ESG overview


52

Attractive benefits of feed enzymes remain important driver for products across species

Phytase Protease Carbohydrase

90%

10-15%

60%

Estimated penetration across species

Protease - Protein• Maximizes protein utilization and improves nutritional value• ProAct® Improves protein digestibility by 3-5%• Allows reduced inclusion levels of protein feed, such as soybean

meal, leading to lower feed cost• Reduces nitrogen excretion to the environment, thereby

lowering greenhouse emissions and reducing water pollution

Phytase - Phosphate• Only limited amount of phosphate in feed is available to the

animal• Farmers can save 25-100% of added inorganic phosphate• HiPhos® releases >80% of the bound phosphorous and lowers

the antinutritional effect of phytic acid• Significantly reduces phosphorous excretion from animals,

thereby lowering phosphorus emissions to water bodies

Carbohydrases - Energy• Xylanase, glucanase, pectinase and hemicellulases increase

digestibility of non-starch polysaccharides in grains and vegetable protein

• Increase nutrient availability and metabolic energy up to 10%• Amylase improves starch digestibility, releasing more energy• Grain feed savings of ~2.5% and less environmental pollution

Business overview

• Latest results


• ESG overview


5353

ESG overview

Our solutions support sustainable food

production and resilient agricultural practices

Our solutions improve yields and reduce the use

of chemicals, energy and aquatic pollution in

industrial tech and food processing

Committed to making a better worldNovozymes is positioned to deliver on the world’s most pressing problems

54

ESG overview

• Latest results


• ESG overview


Sustainability is deeply integrated in our purpose

Sustainability drives how operate - Let’s rethink tomorrow

Sustainability drives the way we do business

Our solutions contribute to reducing aquatic

pollution, among other things

Our enzymes and dietary beneficial bacteria

contribute to make food production systems

more sustainable and healthy

Novozymes promotes the development and

deployment of low-carbon transportation

fuels

55

ESG overview

The worldMeasuring our success

Our operationsMeasuring our success

Novozymes is committed to help solving three global challenges: Climate, Water and sustainable Production & Consumption

We hold ourselves accountable for reducing the negative impact from our operations in these areas

Save 60 million tons CO2

by enabling low-carbon fuels in the transport sector in 2022

Reach > 4 billion people by providing laundry solutions that replace chemicals in 2022

Gain 500,000 tons of food by improving efficiency from farm to table in 2022

Reduce absolute CO2 emissions from operations by 40% by 20222

Develop context-based water management programs at 100% of sites by 20223

Achieve 100% circular management of our biomass by 2022

Climate

Limit global warming increase to 1.5 degrees

Climate

50% reduction in absolute CO2 emissions from operations by

2030 on our way to becoming carbon neutral in 20501

Water

Ensure clean and efficient water use

Water

100% of sites manage water in

balance with local conditions3

Production & consumption

Produce more and better products with less impact

Production & consumption

100% of key materials and waste

managed in circular systems

1. Compared to a 2018 baseline and is being verified by SBTi2. Compared to a 2018 baseline

• Latest results


• ESG overview


3. The target does not include sites with activities considered not to have significant environmental impact, e.g. sales offices, R&D labs, etc.

Environment: We continued to reduce the environmental impact of our operationsDecoupling resource consumption from economic growth

56

We have stepped up on our commitments to address climate, water and production and consumption

2%Increase (year-on-year) in absolute water consumption

69%Renewable electricity2030 target: 100%

2%Reduction (year-on-year) in absolute energy consumption

29%Reduction (year-on-year) in absolute CO2

emissions

ESG overview

• Latest results


• ESG overview


-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

2016201420132010 20172011 20152012 2018 2019 2020

Ch

ange

sin

ce 2

00

5

Sales

Gross Profit

Water

Energy

CO2 emissions

97%Circular management of our biomass waste with nutrients, such as nitrogen and phosphorus, being used in agriculture

✓ Our CO2 reduction targets are science-based targets validated by the Science Based Targets Initiative and aligned with a 1.5° pathway

✓ We have committed to RE100

✓ We are signatory to the UNGC CEO Water Mandate

✓ Joined the Science Based Targets Network’s (SBTN) Freshwater Hub working group to develop and promote context-based water management

✓ Partnered with WWF to develop context-based water management plans for our sites

Social: We plan to continue investing in the development of our employeesSince 2010, see a steady improvement on our key employee engagement metrics

57

33%Women in senior management

81Employee satisfaction

1.3 per million working hours

Lost time injuries

1.9%Employee absence

ESG overview

• Latest results


• ESG overview


We made good progress on our employee targets for 2022

✓ Enable learning score: 78 achieved in our employment survey

✓ Nurture Diversity score: 83 on our diversity index, based on gender and nationality

✓ Conducted the Human Rights impact assessment for the Americas

✓ Rate of employee turnover decreased to 8.7% from 12.7% in 2019

✓ 100% of the palm oil we sourced in 2020 was RSPO-certified

0%

1%

2%

3%

0

1

2

3

4

5

6

7

8

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Employee absence (right axis)

Accidents per million working hours

Governance: Keeping the organization accountableSustainability activities and targets are anchored and executed across the organization

58

Strong oversight of sustainability performance across Novozymes

ESG overview

Sustainability is integrated into long-term incentive programs

40%

40%

20%

Organicsales growth

Economic Profit

Sustainability

Novozymes’ new long-term incentive programs covers the Executive Leadership Team, the Senior Leadership Team and directors, and other employees

Sustainability targets, in line with ‘Better business with biology’, will be allocated if performance targets achieved on four sustainability parameters; climate, water & circular, workplace, and Zymers by the end of 2022

The sustainability component will only be unlocked if Novozymes performs above the floor levels across all four parameters

Weighting in long-term

incentive plan

• Latest results


• ESG overview


Board of DirectorsProvides input to executive management on overall approach to sustainability, and signs off on remuneration policy

Executive Leadership Team

Signs off on Novozymes’ overall approach to sustainability, sets new targets and reviews performance on a quarterly basis

Functional / Divisional level

Develops and executes sustainability roadmaps, recommends new targets and reviews performance on a quarterly basis

Team / Site levelImplements sustainability activities in the roadmap

Continuing our commitment to good performance on material sustainability issuesESG rating agencies have recognized and endorsed our strong commitment to ESG issues

59

Our climate targets are validated by the Science Based Targets initiative.

We have joined the RE100 coalition and committed to 100% renewable electricity by 2030.

We have joined the CEO Water Mandate to promote water stewardship.

We are a signatory to the WEP and support the principles through our policies.

We strongly support the TCFD recommendations and will improve reporting on it in 2021.

… and we continue to support the global call for collective action on material ESG issues

Our strong ESG performance is endorsed by rating agencies...

• AAA rating (2020)

• ESG rating: Low Risk (2020)

• B (Climate Change 2020)• B (Water Security 2020)

• Constituent of FTSE4Good Index Series

• Constituent of the Ethibel Sustainability Index (ESI) Excellence Global and Europe

6060

Financial overview

Multiple tools to optimize cost base

61

Financial overview

Factors impacting our input pricesFactors impacting COGS Split of Cost of Goods Sold

Indirectproduction

costs

~20%

~40%

RawMaterials

Energy/Utilities & others

~40%

Raw materials consist primarily of different chemicals and carbohydrates e.g. sucrose, maltose, glucose and starchGeographical location, i.e., differences

in input

Note: accounting practice implies that there is a time lag between current price levels and COGS

Contractual agreements, i.e., timing and duration

Substitution possibilities, i.e., flexibility in use of different inputs, not dependent upon one source

Price developments for other products produced by our suppliers from the same input

Currency

Productivity improvements

Input prices

USD

Approximately split of COGS

• Latest results


• ESG overview


Historical performance demonstrates delivery track recordMid-term targets 2020-2022

62

21%20% 20%

23%

26% 25% 26%24%

19%

0%

10%

20%

30%20

5

10

0

15

DKKbn

21%

2015 2018 20192012

ROIC

2011 2013 2014 2016 2017 2020

ROIC incl. goodwill

Average invested capital

Sales performance

ROIC incl. goodwillEBIT margin

Financial overview

DKKEBIT margin at or higher than 28% by 2022

ROIC incl. goodwill at or higher than 23% by 2022

Sales performance Organic revenue growth of +5% per year

7%

4%

7% 7%

4%2%

4% 4%

-1%0%

-10%

0%

10%

20%25

0

5

15

10

20

201920182016

Organic sales performanceDKKbn

2011 2012 2013 2014 2015 2017 2020

14.114.0

10.5

11.2

11.7

14.012.5

14.5 14.4 14.4

Organic sales performance

Sales

0%

10%

20%

30%

40%

2

0

1

3

4

6

5

7

27.7% 28.3%

DKKbn

2014

EBITmargin

22.3%

2011

24.4%

2012

24.7%

2013

27.2%

2015

27.9%

2016

27.9%

2017 2018

28.1%

2019

26.1%

2020

EBIT margin EBIT

• Latest results


• ESG overview


Historical performance demonstrates delivery track recordModel assumptions 2020-2022

Net investments CAPEX to sales at or less than 8%

63

Net working capital

Net investments

19%20%

23%

15%

24%

21%

5%

10%

15%

20%

25%

30%

1.0

0.5

0.0

3.5

1.5

2.0

2.5

3.0

4.0

4.5

5.0

19%

2018

9%

2019

DKKbn NWC/Sales

2011 2012 2013 2014

12%

2015 2016 2017

14%

2020

NWC/Sales NWC

13%

11%

7%6%

7%8%

12%

10%

7% 7%

-2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

2.0

0.0

3.0

1.5

0.5

1.0

2.5

2013 20162011

DKKbn CAPEX/Sales

2012 2014 2015 2017 2018 2019 2020

CAPEX/Sales CAPEX


0.30.4

0.2

0.1

0.2

0.3

0.5

0.8

-0.4

-0.2

0.0

0.2

0.4

0.6

0.8

1.0

2.5

-0.5

-1.0

1.5

0.5

0.0

4.0

1.0

2.0

3.0

3.5

4.5

NIBD/EBITDA

20192017 20182011

DKKbn

2020

0.8

2012 20162013

-0.2

2014 2015

NIBD/EBITDA


Financial overview

DKK Net interest-bearing debt ~1x NIBD/EBITDA

Net working capital Improving as a percentage of sales

• Latest results


• ESG overview


Shareholder distribution and dividend payouts

64

Financial overview

As of December 2020• Novo Holdings held 25.5% of the share capital and controlled 72.4% of votes (all A shares and 8.2% of B shares)

• Novozymes had more than 54,000 shareholders of whom 95% were private shareholders in Denmark

24%

30%20%

22%

4%

UK & Ireland

Rest of EuropeDenmark Rest of World

North America

Shareholder distribution of B sharesNovo Holdings was the only major shareholder holding more than 5% of Novozymes’ common stock

33%34%

36% 37% 38%39%

42%45%

47%

52%

2

0%

10%1

0

3

4

5

50%

30%

20%

6

7

40%

60%

1.1

1.5

2.0

0.6

2017

DKKbn

2012

0.81.2

1.0

Payout ratio

0.8

2.0

0.4

3.5

2011

0.9

0.8

0.7

20152013

2.0

2014

2.02.0

2016

1.3

3.2

2.0

1.4

2.9

2018

1.5

2019

1.5

1.5

2020

3.13.3 3.4

3.0

Buyback Dividend Payout ratio (right axis)

DKK ~25.7bn returned to shareholders since 2011All B shares listed in Copenhagen under the symbol ‘NZYM B’ and all A share capital and 18,931,400 B shares held by Novo Holdings, who is wholly owned by the Novo Nordisk Foundation

• Latest results


• ESG overview


Foundation ownership advocates long-term focus

65

Structure and ownership

Novo Nordisk Foundation

Institutional and private investors

Novo Holdings A/S

25.5% of total shares72.4% of votes

74.5% of total shares27.6% of votes

Purpose of the Foundation

The Novo Nordisk Foundation is an independent Danish foundation with corporate interests. The objective of the Novo Nordisk Foundation is twofold:

• To provide a stable basis for the commercial and research activities conducted by the companies of the Novo Group

• To support scientific and humanitarian purposes

140

100

0

20

40

80

60

120

160

180

200

220

240

Nu

mb

er o

f sh

ares

(m

illio

ns)

A shares Bshares

Foundation

Treasury

Free-float

Financial overview

• Latest results


• ESG overview


Our investor relations teamFurther investor relations information is available from the company’s website at investors.novozymes.com

66

Tobias BjörklundHead of Investor relations+45 3077 [email protected]

Naja WivelCoordinator+45 3077 [email protected]

Carl AhlgrenIR officer (US)+1 919 702 [email protected]

Ulrik Wu SvareIR officer+45 3077 [email protected]

Financial overview

• Latest results


• ESG overview


Roadshow presentation Q1 2021

Documents

Transcript of Roadshow presentation Q1 2021