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11/18/2010 Novozymes Welcome!

Novozymes - Diplomacy Matters Institutediplomacymatters.org/programs/nc/5 - Adam Monroe... · 2013. 9. 26. · 4 21/12/2010 novozymes presentation co 2 costs producing 1kg enzyme:

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  • 11/18/2010

    Novozymes

    Welcome!

  • Natures efficient technology

    NOVOZYMES PRESENTATION2 12/21/2010

  • NOVOZYMES PRESENTATION

    3

    12/21/2010

    Rethinking Tomorrow

    Unique technology platform

    • gene technology

    • microbial techniques

    • fermentation technology

  • NOVOZYMES PRESENTATION4 21/12/2010

    CO2 COSTS PRODUCING 1KG ENZYME:

    PLUS : 1-10 KG

    CO2 SAVINGS USING 1 KG ENZYME IN THE MANUFACTURING OF CONSUMER PRODUCTS :

    We reduce CO2 emissions together with our customers

    CEREAL FOOD

    3,800 KG

    ANIMAL FEED

    30 KG

    OILS & FATS

    1,300 KG

    FOOD

    200 KG

    TEXTILES

    100 KG

    LEATHER

    40 KG

    BIOETHANOL

    150 KG

    PAPER

    UP TO 600 KG BIOCATALYSIS

    3,400 KG

    DETERGENT

    150 KG

    28 Million Tons CO2 reduction in 2009

  • NOVOZYMES PRESENTATION5

    World leader in bioinnovation

    Business area

    Main markets Detergent

    Starch, textile, fuel

    ethanol

    Baking, brewing, food

    specialitiesAnimal feed

    Microorganisms within cleaning, plants, waste

    Biopharma-ceutical

    ingredients

    Market share 55-60% 50-55% 30-35% ~40% 30-40% Not disclosed

    % of total NZ sales (2007)

    30% 30% 23% 10% 4% 3%

    ENZYMES BIOBUSINESS

    24/11/2008

  • 6

    Novozymes vision

    ”We imagine a future where our biological solutions create the necessary balance between better business, cleaner environment and better lives”.

  • 7

    Novozymes in brief

    World leader in Industrial Enzymes & Microorganisms and Market leader in all main industries

    More than 700 products used in 130 countries in >40 different industries

    More than 5,000 employees world-wide Sales USD ~1.7bn (FY2009) Enzymes account for >90% of turnover Main production in USA, China and Denmark

    Enzymes for industrial use- market size approx.* ~USD 2.9 billion

    Novozymes business compositionSales 2008 ~ USD 1.5bn

    DSM

    6%

    Danisco

    21%

    Novozymes

    47%

    Others

    26%

    Source: Novozymes 2008 estimates

    Detergent31%

    Technical30%

    Food22%

    Feed9%

    Microorg.5%

    BPI3%

  • 8

    2010 Financial Outlook

    Key financials28.10.10

    Outlook

    12.08.10

    Outlook

    2009

    Realized

    Sales, DKKm - - 8,448

    Sales growth, DKK 12−13% 10−12% 4%

    Sales growth, LCY 9−10% 7−9% 2%

    Sales growth, organic 9−10% 7−9% -

    EBIT, DKKm - - 1,688

    EBIT growth 24−25% 20−22% 12%

    EBIT margin ~ 22% 21−22% 20.0%

    Net profit - - 1,194

    Net profit growth 28−29% 22−24% 12%

    Net investments, DKKm ~ 1,250 1,150−1,250 978

    Free cash flow, DKKm ~ 1,000 800−900 839

    ROIC ~ 22% 21−22% 20.3%

  • 9

    Total of 1,130 employees working in R&D, more than 40% outside Denmark. During 2008 we expanded our research staff by around 100 people.

    Major R&D sites in Denmark, the US (Davis CA and Franklinton NC) as well as in China, Japan and India

    Aggressive pursuit of new biotechnology:~ 14 % of turn over spent on R&D

    6-8 new products launched every year

    Very comprehensive technology platform: More than 6,000 granted or pending patents

    40-year commitment to innovation

    Continuing to Innovate –Novozymes Research & Development

  • NOVOZYMES PRESENTATION

    1021/12/2010

    Global Presence

    Sales Offices

    Production

    Research

  • 11

    Novozymes in the US

    • Franklinton, North Carolina• Salem, Virginia

    • Davis, California• New York, New York

    • Ames, Iowa•Boston, Massachusetts

    •Saskatoon, Canada

    * Davis, CA

    * Salem, VA

    * Franklinton, NC

    * New York, NY* Ames, IA

    * Boston, MA

    * Saskatoon, Canada

    *Blair, NE(under construction)

  • NC & Novozymes:A great partnership

  • 1977 We started in a soybean field…

    15 MUSD45 EmployeesRaleigh – 150,000

  • 1982 15 MUSD Expansion1993 100 MUSD Expansion175 EmployeesRaleigh – 214,410

  • 1995Relocate Sales, Marketing, Technical Service. R&D Unit established>200 EmployeesRaleigh – 214,410

  • 2008 R&D Expansion>450 EmployeesRaleigh – 405,000

  • Site Franklinton –Regional Headquarters

  • NOVOZYMES PRESENTATION18 12/21/2010Change the worldtogether with our customersthrough insight and solutions

    >10%

    in organic sales growth p.a., excluding sales of enzymes for conversion of biomass and excluding acquisitions

    Deliver radical innovation to our customers and their industries

    Drive the world toward sustainability

    million tons reduction in CO2 emissions enabled by customers use of our solutions by 2015

    Make it great to be a Zymer

    >75

    in employee score for “satisfaction and motivation” by 2010

    How to measure success:

    >75

    Customer

    Industry

    World

  • Site Franklinton – North American Headquarters

    • Production

    (Pilot Plant, Fermentation, Recovery,

    Granulation)

    • Sales

    • Marketing

    • Technical Services

    • R&D

    • Quality Control

    • Finance

    • Purchasing

    • Regulatory

    • Information Technology

    • Maintenance/Engineering

    • Human Resources

    Largest multi-purpose

    enzyme manufacturing

    plant in the United

    States – representing

    all business areas:

  • NOVOZYMES PRESENTATION21 12/21/2010Change the worldtogether with our customersthrough insight and solutions

    Customer

    Industry

    World

    Deliver radical innovation to customers

    Drive the world toward sustainability

    Make it great to be a Zymer

    Develop great leaders

    Deepen our relationship-based culture

    Be a company people want to work for

    Simplify how we work together

    Be smart and efficient as we grow

    Build relations and partnerships for growth

    Develop new enzyme growth engines

    Build BioBusiness

    Win in biomass

    Become a voice on the world stage

    Sustainable solutions drivenew business

    Build sustainability capabilities

  • NOVOZYMES PRESENTATION22 12/21/2010

    Sustainability –Not just a drop in the ocean

    NZ recognized as a company that goes above and beyond legal compliance in our financial, social and environmental activities.

    We conduct our business in a responsible and transparent manner.

    We engage in innovation partnerships and open dialogue with customers, NGOs, governments and our surrounding society to find solutions to some of the world‟s biggest problems like climate change, energy deficiency and human rights violations

  • Product launches in 2008 and 2009

    NOVOZYMES PRESENTATION23 12/21/2010

    2008

    Celluclean®, a detergent enzyme that provides strong whiteness and anti-graying effect, thus enhancing the effect from bleach.

    Attenuzyme® Flex, an enzyme for shortened process time and better control in the production of light and low-carb beers.

    CellPrime ® rTransferrin AF, a recombinant animal-free cell culture supplement, enhancing the growth and productivity of cells during the manufacture of biopharmaceutical products through improved iron transport.

    RONOZYME® ProAct, a feed enzyme optimizing protein utilization, improving nutritional value, and enhancing animal performance, leading to cost savings.

    Lactose Oxidase, a food enzyme allowing the dairy industry to add value to the whey stream. Whey is a by-product of cheesemaking.

    Pectinex® Ultra Mash, an enzyme applied to improve the yields in apple juice production during mashing, offering increased yield and smoother processing in comparison to existing enzyme solutions.

    Novozym® 12001, a food enzyme that allows the use of soya protein in a broad range of food applications, making them healthier and improving taste.

    FiberCare® D, an enzyme for use in the pulp and paper industry. The enzyme improves drainage performance in paper mills producing paper and cardboard from recycled paper and cardboard. Benefits include improved process time.

    Cellic™ CTec, a unique cellulase complex for cost-effective hydrolysis for production of bioethanol from cellulosic feedstock

    Cellic™ HTec, a hemicellulase complex that provides a hydrolysis boost option over Cellic CTec, i.e., improves C5 sugar yields

    2009

    Cellic™ CTec, a unique cellulase complex for cost-effective hydrolysis for production of bioethanol from cellulosic feedstock. High conversion efficiency on acid and neutral pretreated feedstocks.

    CellPrime™ rAlbumin AF-G, a recombinant animal-free cell culture supplement replacing human- or bovine-derived serum albumin in industrial-scale mammalian cell culture applications. This is the third product in the CellPrime range offered through the alliance with Millipore and designed for large-scale industrial bioprocessing applications.

  • NOVOZYMES PRESENTATION24 24/11/2008

    What are enzymes?

    Naturally occurring proteins which are found in every living organism: man, animals, plants, or microorganisms such as bacteria and fungi

    “Nature‟s tools” - enzymes „cut and paste‟ substances and speed up all vital biological processes

    The enzymes in the stomach, for instance, ensure that food is cut into tiny pieces that can be digested by the body

    Enzymes make better use of raw materials and create „more from less‟

    Novozymes‟ enzymes‟ help make industry more efficient and less polluting

  • Novozymes‟ first enzyme was a protease used in hospitals to remove blood stains from linen

    Today, enzymes enable laundry to be washed at much lower temperatures by „cutting up‟ stains and grease. Enzymes are effective down to 15°C

    Lowering washing temperature from 40 to 30°C reduces electricity consumption by 30% - while keeping clothes clean

    Enzymes replace oil-based chemicals previously used in detergents

    Do our laundry

    NOVOZYMES PRESENTATION25 24/11/2008

  • Pigs and poultry stomachs not capable of breaking down plant cell walls. Nutrients, especially phosphates, pass right through the animals without being utilized

    Phosphates in animal dung pollute rivers and lakes and cause algae growth

    Farmers have to add expensive inorganic phosphates to animal feed

    By adding enzymes to the feed, almost all the nutrients are released

    This saves costs for the farmers and reduces pollution

    Improve animal feed

    NOVOZYMES PRESENTATION26 24/11/2008

  • NOVOZYMES PRESENTATION27

    Enzymes can replace artificial colorings, flavorings and preservatives

    Cheese, beer and wine cannot be made without enzymes

    Creates “low-carb” or “light beer”

    Makes sugar sweeter: glucose to fructose

    Removes harmful trans-fats from cooking oil

    Keeps bread fresher for longer – less waste

    Produces more beer from less malt

    Food production

    24/11/2008

  • NOVOZYMES PRESENTATION28 12/21/2010

    Appendix

  • Our sustainability approach

    ”We imagine a future where our

    biological solutions create the necessary

    balance between better business,

    cleaner environment, and better lives.”

    Integrated reporting

    Values

    Policies, standards-

    Sustainability is

    how we do

    business

    Sustainability is

    fully integrated in

    our business

    processesStrategies

    Novozymes in Denmark

    will be CO2 neutral for

    electricity by 2012

    Sustainability

    bonus scheme

    +

    Stock option

    program

  • Novozymes has been recognized on several occasions for its efforts in corporate responsibility:

    Recognized as a leader in sustainability

    NOVOZYMES PRESENTATION30

    Novozymes has a sector leader position in the Dow Jones Sustainability Group Index in the biotech sector for 7 consecutive years

    Novozymes is member of the FTSE4Good Global and Europe indexes

    SustainableBusiness.com recognized Novozymes among the top 20 companies on their 2007 SB20 list - The World's Top Sustainable Business Stocks

    Novozymes qualified to be considered “best in class” by Storebrand Investments SRI

    Selected on the Global 100 list by Innovest Strategic Value Advisors and Corporate Knights

    Ranked as No 8 (Pharmaceuticals & Biotechnology) in the Carbon Disclosure Project, Nordic Report 2007, for Carbon-Intensive Sector Companies

  • 12/21/2010

    Our workplace

  • NOVOZYMES PRESENTATION32 12/21/2010

    How we work together

    At Novoyzmes, we believe strong players need strong teams. From the word "Go," we‟ll trust and support each other to tackle big challenges.

    We are a team of sparky and dedicated colleagues who challenge each other to perform our best and care for each other along the way.

    Novozymes hires the best, so from the first day newcomers should expect to be given a lot of responsibility and to make a positive contribution.

  • NOVOZYMES PRESENTATION33 12/21/2010

    Our mindset

    Every day you work for Novozymes you get a golden opportunity to achieve something extraordinary. On a daily basis we find inspiration by challenging conventions. This leads to exhilarating ideas that echo around the world.

    At Novozymes, we make a big difference because we do things differently.

  • NOVOZYMES PRESENTATION34 12/21/2010

    What motivates us

    At Novozymes we turn the challenges of today into opportunities to create a better future. Always focused on what‟s next, we network with our partners to develop the bioinnovations of tomorrow.

    If you dream of shaping a brighter future, there‟s no better place to do it than at Novozymes.

    We expect employees to be aware of what‟s going on in the world, who‟s shaping public opinion, and to engage in the dialog.

  • NOVOZYMES PRESENTATION35 12/21/2010

    Leadership is for everyone

    Dedicated to reinforcing our position as the market leader, we are passionate about encouraging initiative and thought leadership.

    As a result, everyone at Novozymes is expected to create their own opportunities and develop their own path. Ultimately, we‟ll help and support them realize their full potential.

  • 12/21/2010

    The regions

  • Novozymes in Europe

    NOVOZYMES PRESENTATION37 12/21/2010

    Market presence:

    Europe (EMEA – Europe, Middle East & Africa) is the largest regional market for Novozymes

    EMEA sales were 38% of total 2008 revenue

    Main markets are: feed, cereal food, detergents, starch, BPI

    Industries in focus: Bioethanol, Detergents

    Employees:

    Number of employees: 2,791 in EMEA (year-end 2008

    About 54% of Novozymes‟ total employee cost is in EMEA

  • Novozymes in Europe

    NOVOZYMES PRESENTATION38 12/21/2010

    Locations:

    Bagsvaerd(Head office)

    Kalundborg(Enzyme production since 1969)

    Fuglebakken in Copenhagen (Enzyme production since 1941)

    Lund, Sweden (Biopharmaceutical products)

    Nottingham, UK (Biopharmaceutical production and Biopharmaceutical headquarters)

    Switzerland (Marketing)

    Paris (Regional headquarters, EEMEA)

    Vienna (Regional headquarters, CWE)

    About 60% of Novozymes‟ total assets are in Europe

    Key partners:Unilever, Proctor & Gamble, Chr. Hansen

  • Novozymes in North America

    NOVOZYMES PRESENTATION39 12/21/2010

    Market presence:

    The US is the largest national market for Novozymes

    North American sales were 27% of total 2008 revenue; Canada contributed only a minor part

    Main markets are: bioethanol, detergents, baking, starch, microorganisms, BPI

    Industry in focus: Bioethanol

    Market share in bioethanol: ~60%; other market shares are not quantified for the US

  • Novozymes in North America

    NOVOZYMES PRESENTATION40 12/21/2010

    Employees:

    Number of employees: 750 in North America

    About 19% of Novozymes‟ total employee cost is in North America

    Locations:

    NYC (Patent office)

    Franklinton, NC (Production and Administration; both since 1979)

    Davis, CA (R&D)

    Boston, MA (BPI marketing and sales)

    Salem, VA

    Saskatoon, Canada

    Blair, Nebraska (Production, construction began in 2009)

    About 17% of Novozymes‟ total assets are in North America

    Key partners: POET, ICM

  • Novozymes in Latin America

    NOVOZYMES PRESENTATION41 12/21/2010

    Market presence:

    Brazil is a major producer of sugarcane and provides potential as a locally grown source for producing second-generation bioethanol

    Latin American sales were 7% of total 2008 revenue

    Main markets are: detergents, feed enzymes

    Industry in focus: Biofuel

    Brazil is the major producer and user of flex-fuel cars, which can use ethanol not only as an effective fuel extender to make gasoline supplies last longer, but also as an octane booster

  • Novozymes in Latin America

    NOVOZYMES PRESENTATION42 12/21/2010

    Employees:

    Number of employees: 180 in Brazil and 13 in Mexico

    ~3% of Novozymes‟ total employee cost is in Latin America

    Locations:

    Brazil, NZBR (Production, Administration, Sales, and Customer Solutions since 1989; R&D since 2008)

    Mexico, NZMX (Sales office and Re-filling)

    Key partners: CTC (Centro de Tecnologia Canavieira), Petrobras, and UFPR (Federal University of Paraná)

  • Novozymes in China

    NOVOZYMES PRESENTATION43 12/21/2010

    Market presence:

    Novozymes is one of the largest Danish businesses in China

    China is the second largest national market for Novozymes, after the US

    Asia Pacific sales were 18% of total 2008 revenue

    Main markets are: textiles, starch, detergents, brewing

    Industries in focus: Detergents, Textiles, Bioethanol

    Competitors: Danisco/Genencor and local enzyme producers

  • Novozymes in China

    NOVOZYMES PRESENTATION44 12/21/2010

    Employees:

    Number of employees: 1,300 in Asia Pacific

    About 26% of Novozymes‟ total employee cost is in Asia Pacific

    Locations:

    Beijing (Main site, R&D, Finance and Sales; all since 1991)

    Tianjin (MPP, HA)

    Suzhou Hongda(largest enzyme fermentation facility in the world)

    Shenyang (Biologicals)

    Key partners:COFCO, Sinopec

  • 12/21/2010

    Business areas

  • Enzymes BusinessWorld leader in industrial enzymes

    NOVOZYMES PRESENTATION46 12/21/2010

    Enzymes are the tools of nature. They “cut and paste” all kinds of biological materials and kick-start all biological processes.

  • NOVOZYMES PRESENTATION21/12/201047

    Enzymes create “more from less”

    Enzyme technology is green technology

    Enzymes save energy

    Enzymes save chemicals

    Enzymes save raw materials

    Enzymes save limited resources and reduce water pollution

  • Detergent enzymes

    Technical enzymes

    Food enzymes

    Feed enzymes

    Enzyme Business (EB) operates in four main areas

    NOVOZYMES PRESENTATION48 21/12/2010

  • Detergent enzymes are used in household and industrial laundry and dishwashing detergents.

    For example in the process of washing clothes, certain enzymes break down water-insoluablestains into water-soluble molecules that can be rinsed away by the wash water.

    NOVOZYMES PRESENTATION49 12/21/2010

    Detergent enzymes

  • Technical enzymes are used, among other things, in the transformation of starch into different kinds of sugars.

    This functionality is used in the starch and fuel industries.

    However, technical enzymes are also used for many other applications in, for example, the leather, textile, and forest product industries.

    NOVOZYMES PRESENTATION50 12/21/2010

    Technical enzymes

  • Food enzymes for the food industry enhance quality and/or efficiency in the manufacture of food products such as bread, wine, juice, beer, noodles, pasta, and alcohol.

    NOVOZYMES PRESENTATION51 12/21/2010

    Food enzymes

  • Feed enzymes when added to animal feed increases the nutritional value of the feed.

    This leads to faster growth of the animals and better utilization of the feed, and improves the environment as less phosphorus is released via manure.

    NOVOZYMES PRESENTATION52 12/21/2010

    Feed enzymes

  • We use fermentation technology to produce proteins other than industrial enzymes that are then, for example, used in the pharmaceutical and cosmetic industries and within agriculture.

    BioBusiness

    NOVOZYMES PRESENTATION53 12/21/2010

  • Microorganisms

    Biopharmaceutical ingredients

    BioBusiness operatess in two main areas

    NOVOZYMES PRESENTATION54 21/12/2010

  • Microorganisms are a diverse group of microscopic organisms such as bacteria and fungi.

    Our microorganisms are used in industrial and household applications (such as odor control and cleaning of drain lines); for reduction of harmful compounds in industrial and municipal wastewater; to improve yields and crop health in aquaculture; and to improve yield in agriculture while minimizing the environmental footprint.

    NOVOZYMES PRESENTATION55 12/21/2010

    Microorganisms

  • Biopharma produces proteins and other biological substances used in the pharmaceutical industry. Our products are produced recombinantly from non-animal sources, eliminating any contamination risk.

    NOVOZYMES PRESENTATION56 12/21/2010

    Biopharmaceutical ingredients

  • We see many opportunities to use our existing technologies to cultivate BioBusiness across a broader range of applications.

    Conversion of Renewable sources to chemicals (CoRe) is one of our business development platforms. Within CoRe we have an agreement with Cargill to develop technology for production of acrylic acid from renewable raw materials. Specifically, fermentation of sugar into 3-hydroxypropionic acid (3HPA) using an engineered microorganism. 3HPA can subsequently be transformed into a range of valuable chemical derivatives, including acrylic acid.

    Developing BioBusiness

    NOVOZYMES PRESENTATION57 12/21/2010

  • Bioethanol

    NOVOZYMES PRESENTATION21/12/201058

  • Novozymes and biofuel

    Leader in enzymes for first- and second-generation biofuels

    Current first-generation enzyme business (starch-to-ethanol) mainly a US affair

    ~17% of Novozymes‟ total revenue in 2008

    Largest supplier of enzymes to the fuel ethanol industry

    Three out of four new starch-based fuel ethanol plants have started using enzymes from Novozymes

    150 people working on cellulosic ethanol

    Novozymes will be the first company to supply commercial quantities of enzymes to make second generation of bioethanol by 2010

  • Stabilizing climate change: a 42 Gt reduction of CO2 emissions is needed compared to 2005 levels

    The biofuel industry is

    ahead of the curve – and

    delivers significant CO2

    reductions already today

    Energy efficiency

    Electric and plug-in vehicles

    Hydrogen fuel cell vehicles

    BiofuelsBuildings, 20%

    Industry, 14%

    Power, 36%

    Gt CO2reduction

    Total reduction = 42 Gt

    Transport, 30%

    Emission peak in 2012 at 30 Gt

    Today: 1−2% share of global transport fuel – delivering GHG emission reductions up to 67% for US-produced and up to 90% for Brazilian bioethanol

    2010: Novozymes ready with enzymes for commercial-scale production of 2G

    2022: Biofuel will make up 25% of US transportation fuel use – about half will be 2G (cellulosic ethanol)

    Sources: IEA, OECD, Argonne National Laboratory, US Energy Security and Independence Act, Liska

  • Bioenthanol addresses a number of issues on the global agenda

    Bioethanol

    Improved

    energy

    security

    GHG

    reductions in

    transport

    Economic

    development

    Step towards

    a biobased

    society

    • Diversify energy/fuel supply

    • Reduce exposure to oil price

    • Transport: 2nd largest and fastest

    growing source of CO2 emissions

    • Bioethanol: Today’s only option for

    large scale replacement of gasoline

    • Stimulate growth in

    agriculture and industry

    • Improve trade balance

    • Roll-out ‘sugar-base’

    technology

    • Establish supply-chains

    Sustainability

    • Sustainability criteria and certification schemes will promote sustainable biofuels

    • Biofuel has evoked an attention to sustainability that will have positive spill-over

    effects on agriculture in general

  • Biofuel - key to reducing global oil dependency

    Many countries are highly dependent on imported oil:

    US (2008): +60%

    China (2006): 47%

    EU (2005): 82%

    Half the world‟s poorest countries import all their oil: and a $10/barrel oil price increase cuts their GDP by 1.6%

    Oil resources are running dry – price volatility

    In nine out of 12 scenarios conventional oil production peaks before 2050

    Shell expects a supply gap by 2015

    Sandia/GM study: Capital needed for replacing 30% of gasoline in the US with 2G - same as for equivalent amount of oil.

    2007: biofuel production replaced 1 million barrels of crude oil – every day

    Enough biomass availability exists in the US and EU to meet at least 25% of their needs for transport fuel in 2030 – without significant increase in acreage used for biofuel feedstocks

    Sources: US DofE, University of Nebraska, IEA, EU Commission (Refuel project), EUROSTAT

  • Green economy and green collar jobs:Impact of the RFS towards 2022

    State economy:

    • Impact 2022: $150 billion

    • GDP $1.23 trillion

    Green collar job creation

    • 2012: 100.000 jobs

    • 2022: 800.000 jobs

    State economy:

    • Net benefit $7 billion

    • Return on investment $1 =

    $2.5

    • GDP $66 billion

    Reduced oil import:

    • 13 BnG (5% of US oil import)

    • worth $32 billion

    Jobs:

    • 500.000 supported

    2008 2012-2022

  • Developing countries economic boost

    Biofuel production can help drive rural

    economies in developing countries:

    New markets for agricultural

    products enable adoption of better

    and more efficient farming

    Direct and indirect job-creation in

    farming and biofuel production

    Reduced dependency on imported

    energy

    Corn yield (kg/ha)

    0

    2500

    5000

    7500

    10000

    '61 '66 '71 '76 '81 '86 '91 '96 '01 '06

    US

    W Europe

    China

    E Europe

    „06 world average

    Brazil

    Africa

  • .

    2G will significantly increase CO2 reduction compared to 1G technologies

    20

    30

    40

    10

    0

    60

    70

    80

    5090%

    saving

    70%

    saving

    50%

    saving

    30%

    saving

    Gasoline 1G (corn) 2G (corn cobs) Reduction in GHG emission

    from substituting

    gasoline

    g CO2equiv. per MJ

    CHP(fossil)

  • CO2 savings from the RFS2009-2022 bioethanol will displace the equivalent

    of 500 BnG of oil – and in 2022 make up >20% of US gasoline for road transportation

    CO2 savings from the RFS

  • Bioethanol: Making more with less

    It takes 0,8 MJ to produce 1 MJ of bioethanol – and only 0,14 unit crude oil

    Gasoline‟s energy balance worsen as less accessible petroleum sources gets exploited

    Bioethanol‟s energy balance improve e.g. as enzymes enable lower temperature processes and the production of cellulosic bioethanol

    Bioethanol continues to produce more with less

    1 energy unit fuel

    Fossil energy units used pr. energy unit of fuel produced

    TimeNow

    1GBioethanol

    Oil

    2GBioethanol

    6721/12/2010

    Bioethanol has an increasingly better energy balance than gasoline

    The opportunities of biofuel

  • Total production costs for 2G ethanol will be comparable to 1G already by 2010

    The costs have been halved over the last 3 years

    This means that commercialization of 2G is just around the corner

    Total production costs for 2G ethanol is approaching 1G rapidlyNovozymes estimate that by 2015, 2G could work without subsidies in the US with an oil price of USD $80-120/gallon

    USD/EUR exchange rate from xe.com (25th march)

  • Novozymes‟ position is clear: All agricultural products,

    including biofuels, must be produced in a sustainable way

    Policy-makers, the agricultural sector, and the biofuel

    industry have a shared and global responsibility to ensure:

    Incentives to adopt the most sustainable and most GHG-

    reducing biofuels

    Adoption of good agricultural practices – leading to increased

    and sustainable food and fuel production

    Certification of sustainable biofuels could pave the way for

    increased sustainability of the entire agricultural sector

    Novozymes participates actively in the development of

    sustainability criteria and certification schemes for biofuel*

    NZ strongly supports that biofuels should be produced environmentally sustainably

    * For example by participating in the Roundtable for Sustainable Biofuels and the Global Bioenergy Partnership

  • A more sustainable and less oil-dependent

    energy system is needed

    For the transport sector biofuel is the only

    pathway currently available

    Enzyme technology is constantly

    developing – making bioethanol even

    more sustainable and climate friendly

    Industrial biotechnology enables not only

    bioethanol – but sustainable solutions

    across a range of industries

    Rethink tomorrow and help create a more secure, sustainable biobased society

  • 12/21/2010

    Key facts

  • NOVOZYMES PRESENTATION72 12/21/2010

    Research & Development

    • About14% of our revenue is spent on research and development.

    • More than 6,000 patents in place.

    • Total of 1,130 employees working in R&D, more than 40% outside Denmark. During 2008 we expanded our research staff by around 100 people.

    • Our R&D projects are carried out in partnerships or by us alone.

  • NOVOZYMES PRESENTATION73 21/12/2010

    Employees

    More than 5,000 employeesworldwide

    Around 50% working in Denmark

    Research and

    Developement

    15%

    Production

    50%

    Sales,

    Marketing and

    Corporate staff

    35%

  • NOVOZYMES PRESENTATION74 21/12/2010

    Global presence

    Sales Offices

    Production

    Research

  • Development, production, and distribution of enzymes are a major part of our business

    Enzymes are readily biodegradable proteins that are found in all living organisms and catalyse biochemical reactions

    Enzyme technology can typically replace conventional chemicals, improving resource efficiency and generally reducing environmental impact

    Enzymes Business accounts for more than 90% of sales

    Enzymes Business is divided into four areas: Detergent enzymes (31%), Technical enzymes (30%), Food enzymes (22%) and Feed enzymes (9%)

    Enzyme Business

    NOVOZYMES PRESENTATION75 21/12/2010

  • BioBusiness

    NOVOZYMES PRESENTATION76 21/12/2010

    We use fermentation technology to produce proteins other than enzymes that are then, for example, used in the pharmaceutical and cosmetic industries and within agriculture

    We also sell microorganisms for various applications in a range of industries. We see a lot of opportunities to use our existing technologies to cultivate BioBusinessacross a broader range of applications

    Bio Business is divided into two areas: Microorganisms (5%) and Biopharmaceutical ingredients (3%)

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