Road Show presentation Q3 2016...• Novozymes has acquired the Germany-based Organo Balance to strengthen our microbial platform • Novozymes got a record-high score in the DJ Sustainability

Road Show presentation Q3 2016

October 26th 2016

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

other words of similar meaning.

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

products, market-driven price decreases, industry consolidation, and launches of competing products or disruptive technologies in Novozymes’ core areas; iii) the ability to protect and enforce the company’s intellectual property rights; iv) significant litigation or breaches of contract; v) the materialization of the company’s growth platforms, notably the opportunity for marketing biomass conversion technologies or the development of microbial solutions for broad-acre crops; vi) the

political conditions, such as acceptance of enzymes produced by genetically modified organisms; vii) the global economic and capital market conditions, including, but not limited to, currency exchange rates (USD/DKK and EUR/DKK in particular, but not exclusively), interest rates and inflation; viii) significant price decreases on input and materials that compete with Novozymes’ biological solutions. The company undertakes no obligation to update any forward-looking statements as a result of future developments or new information.

Forward-Looking Statements

2

Table of contents

1. Latest results

2. Novozymes Overview

3. Strategy

4. Market Overview

- Household Care

- Food & Beverages

- Bioenergy

- Agriculture & Feed

- Technical & Pharma

5. Sustainability

6. Financial Review

4

12

19

30

31

35

38

42

49

51

56

3

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

9M 2016 summary

2,541 2,922 2,884

27.4%*

27.7% 27.7%**

25%

26%

27%

28%

29%

9M 2014 9M 2015 9M 20162.000

2.500

3.000

3.500

4.000

EBIT and EBIT margin 9M 2014 – 9M 2016 Adjusted EBIT

Reported EBIT

9M sales lower than expected; EBIT & EBIT margin are

on par with last year

• 1% organic sales growth and -1% in DKK in the first 9 months of 2016.

Growth driven by Household Care, F&B and Technical & Pharma

• Bioenergy and BioAg continue to be low due to challenged ethanol plant

economics and slower uptake in BioAg in both the U.S. and Latin America

• Adjusting for the negative impact from the reorganization in Q1, EBIT

grew by more than 1% and the EBIT margin expanded to above 28%

Good progress on strategic priorities

• Novozymes has acquired the Germany-based Organo Balance to

strengthen our microbial platform

• Novozymes got a record-high score in the DJ Sustainability Index and

made it to the “A-list” in the CDP 2016 Climate Change Assessment

• Several innovations expected to be launched in Q4

2016 organic sales guidance around 2%; earnings

outlook adjusted within range

• Organic sales ~2% (prev. 2-4%); sales in DKK 0-1% (prev. 1-3%)

• EBIT margin, CAPEX, cash flow and ROIC all maintained

9,278 10,550 10,428

8%

4%

1%

-2%

0%

2%

4%

6%

8%

10%

9M 2014 9M 2015 9M 20168.000

8.500

9.000

9.500

10.000

10.500

11.000

Sales and organic growth 9M 2014 – 9M 2016

5

DKKm

DKKm

* Adjusted for the BioAg Alliance, the

EBIT margin would have been ~26.2% ** Adjusted for the reorganization,

the EBIT margin would have been ~28.3%


Household Care & Technical

Household Care

• Continued strong momentum in China and South East Asia, driven

by increased penetration in liquid detergents. Growth offset by weaker performance in Europe

• Premium detergents still in demand in North America, driving solid sales, while Latin America is negative

Technical

• Textiles continue to do well, while sales to wastewater treatment and leather are flatter compared with last year

Pharma

• Strong growth in Pharma, driven by higher demand for albumin and pharma enzymes as well as increased royalties from GSK’s sale of Tanzeum®. Final sales of HA in Q1

3.484

836

3.484

718

Household Care Technical & Pharma

9M 2016

9M 2015

6

+1% / 0%

+20% / +16%

Organic growth / DKK growth


Hygiene solutions to deliver the next wave of growth for laundry in both developed and emerging markets

Traditional enzyme solutions have enabled a switch to cold washing

Four key trends are increasing consumers’ laundry hygiene concerns

Novozymes invests to ensure innovative, safe and natural solutions to address consumers’ hygiene concerns

Cold wash

Rise of liquids

Changing textiles

Urbanization

Liquid detergents are a premium product and more user-friendly

The lower cost and higher flexibility of synthetics are driving more textile production using these materials

An increasing population searching for opportunities in the cities

Novozymes is a first mover in hygiene and has a dedicated team of scientists working on solutions that improve laundry hygiene

Novozymes expects to launch a portfolio of innovations within the hygiene platform over the coming period

2

1

3

4

QUARTERLY RESULTS • NOVOZYMES OVERVIEW • STRATEGY • MARKET OVERVIEW • SUSTAINABILITY • FINANCIAL REVIEW 7

Agriculture & Bioenergy

Bioenergy

• U.S. ethanol producers’ margins remain low, and producers are

continuing their optimization programs and cost reductions, resulting in further downtrading

• Avantec® Amp progressing better, but uptake still slower than

expected. Liquozyme® LpH doing well in the competitive liquefaction market

BioAg

• Sales in BioAg are down from last year, mainly due to changes in sales pattern. In addition, the lower commodity prices continued to impact in particular the premium inoculant segment

Animal Health & Nutrition

• Solid performance in Feed driven by strong in-market sales and

inventory building

• Alterion® launch is progressing according to plan

8

1.775 1.530

1.927 1.606

Bioenergy Agriculture & Feed

9M 2016

9M 2015

-7% / -8 % 0% / -5%



Food & Beverages

Baking

• Baking marginally below last year, as good growth in Europe and

Asia-Pacific was outweighed by increasing competition in the Americas

Starch

• Solid growth in starch driven by increasing penetration across markets and application segments

Food & Nutrition

• Food & Nutrition continues to be negative with sales in the infant nutrition segment down significantly in the first nine months, partly

offset by strong growth in lactose reduction

Beverages

• Beverages are delivering solid growth across segments, mainly driven by sales in raw material optimizations for brewing

9

2.802 2.815

Food & Beverages

9M 2016

9M 2015

+1% / 0%



Research & Innovation update

Strengthening our microbial platform

• Germany-based Organo Balance will be integrated as part of Novozymes’ global R&D organization, enhancing our capabilities within microbial technology

• Access to a large collection of strains and capabilities in microbial screening and assay technology

• Applications and know-how within microbial solutions across a number of industries, incl. Food, Feed and Animal Health & Nutrition

Exciting new launches expected in Q4

• SAT B-300 – new upstream inoculant to be launched with Monsanto’s Acceleron® corn brand

• A number of new innovations in Food & Beverages, mainly within starch and oil-seed refining

• First new product within sugarcane-based ethanol

for biofuels

10

Acquisition of Organo Balance Innovation


Financial performance & outlook

9M 2016: Earnings on par with last year

• Gross margin roughly on par with last year, as productivity

improvements offset the one-time reorganization cost incurred in Q1

• Adjusting for negative one-time impact following the reorganization in

Q1, EBIT grew by more than 1%, while the EBIT margin expanded to

above 28%

• Net profit grew by 5% in the first 9 months

2016 organic sales guidance around 2%; earnings

outlook adjusted within range

• Organic sales growth outlook adjusted to ~2% from 2-4% previously;

sales growth in DKK adjusted to 0-1% from 1-3% previously

• Sales expected to pick up in Q4, driven by BioAg ramp-up to the

2017 season

• EBIT and net profit adjusted within previous guided range to reflect

lower sales growth

Key

financials Realized

9M 2016 2016 outlook

October 26

Sales growth, org. +1% ~2%

Sales growth, DKK (1%) 0-1%

EBIT growth (1%) 1-2%

EBIT margin 27.7% ~28%

Net profit growth 5% 8-9%

Net investments excl.

acq., DKKm 746 1,100-1,200

Free cash flow before

acq., DKKm 2,222 2,400-2,600

ROIC incl. goodwill 25.3% 25-26%

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


Novozymes – the world leader in bioinnovation

Who are we?

13

Founded 1925

Listed 2000

Ticker NZYM B

Exchange Copenhagen

Market Cap US$ ~11bn

Household Care & Technical

Industries Food & Beverage


Research, Innovation &

Supply

Corporate Functions

Global R&D intensive Profitable Majority owner

Novo A/S

~6,500 employees,

700 products in

140 countries

~7,000 patents,

~14% of sales

spent on R&D

$2bn in sales and

27.7% EBIT margin

in 2015

controls 25.5% of

the capital and

70.4% of the votes


Foundation ownership advocates long-term focus

14

0

50

100

150

200

250

300

A-shares B-shares

No

of

sh

are

s –

mil

lio

ns

Free-float

Treasury

Foundation100% 10%

(Holding company)

Large investments: Sonion

Chr. Hansen

Xellia

Financial investments Venture capital

Seed capital

Novo Group companies:

Novo A/S

controls

25.5% of

Novozymes’

capital and

70.7% of the

votes

Purpose of the Foundation: 1. provide a stable basis for the commercial

and research activities of the companies in Novo A/S

2. support physiological, endocrinological, metabolic and other medical research

3. contribute to the preservation and operation of Novo Nordisk A/S' research hospital activities

4. support other scientific as well as humanitarian and social purposes


Experienced leadership team – with more than 23 years seniority on average with the business

Tina S. Fanø

Executive Vice President,


Novozymes since 1993

Peder Holk Nielsen

CEO & President


Thomas Videbæk

COO & Executive Vice President,

Research, Innovation & Supply


Anders Lund


Household Care &

Technical Industries


Benny D. Loft

CFO & Executive Vice President,

Corporate Functions


Andrew Fordyce


Food & Beverages



Uniquely diversified group – Creates synergies and new opportunities

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

• ~14% of annual sales invested in R&D

• Global provider of enzymes to all market segments creates global market leader position

• Leveraging competencies across segments accelerates pace of innovation, reduces competition and creates high barriers to entry

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

Laundry & Dishwasher detergents,

Cleaning products

Baking, Starch to syrups, Brewing &

Alcohol, Healthy concepts

Corn ethanol

Cellulosic biofuels

Animal feed

BioAgriculture

Textile & Leather, Pulp & Paper,

Wastewater, Pharma ingredients

33% 27% 18% 15% 7%


Industry growth profiles and 5-yr organic averages Region growth profiles and 5-yr DKK averages

33%

27% 18%

15%

7%

HHC

F&B

BioE

A&F

T&P

35%

36%

19%

10%

Europe, Middle East and Africa

North America

Asia Pacific

Latin America

Diversification in revenue streams underpins the company’s strong financial position

0

1

2

3

4

5

2011 2012 2013 2014 2015

Bn

DK

K

HHC 6%

F&B 4%

BioE 4%

A&F 11%

T&P 5%

0

1

2

3

4

5

6

2011 2012 2013 2014 2015

Bn

DK

K

EMEA 6%

NA 7%

AP 8%

LA 14%

17

Industry Region


18

Satellite production site

Core production plant

Main R&D center

Satellite R&D site

Beijing + Tianjin, China

Hongda, China

Copenhagen, Denmark HQ+R&D+Production

Global production and R&D setup - 5 Core production plants and 3 satellites - 3 Main R&D centers and 4 satellites



16 years of innovation-driven returns

Strong absolute returns since 2000

• 2.8x sales

• 4.6x EBIT

• 5.9x net profit

• DKK ~32bn In operating cash flows

Driven by topline and leverage

• ~7% organic sales CAGR

• +5.8 %-points gross margin

• +11.0 %-points EBIT margin

• +15.9 %-points ROIC

Innovation is the recipe

• DKK 18bn invested in R&D

• +100 new solutions marketed

20

10%

12%

14%

16%

18%

20%

22%

24%

26%

28%

30%

0

2.000

4.000

6.000

8.000

10.000

12.000

14.000Sales DKKm

EBIT margin

R&D/Sales

ROIC

Historical performance


Novozymes’ purpose


Our strategy puts partnerships front and centre


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

23

Scale Quality Sustainability High barriers

• Production: 5 core

plants in 3 regions

• Research &

Development: 2/3

of total investment

of industry

• Technical

services: half of

commercial

organization “on

site”

• Market &

technology

coverage

• Superior logistical

agility due to full

control of value

chain

• Right quality for

customers and

regulatory

requirements

• Triple bottom line

• Trusted long-term

partner

• Pioneering life

cycle assessment

documentation

• More than 7,000

patents

• Diverse biotech

know how and

investments

needed to

compete

• Customer

partnerships

• Manufacturing

expertise

48%

20%

32%

Source: Novozymes estimate

Novozymes Others

Genencor (DuPont)


~ ~

~

Global enzyme

market DKK ~25 bn

Financial priorities and long-term targets; - Innovation, growth & shareholders

~14% R&D/sales

<8% CAPEX/

sales

~40% Dividend

payout

≥25% ROIC

incl. goodwill

>26% EBIT margin

6-7% Org. sales

growth

8-10% Org. Sales growth ambition

Accumulated buybacks end of 2015 since IPO were DKK ~10 billion

Accumulated dividend and stock buybacks of ~DKK 17 billion since 2000

Total shareholder return 2000-2015 of ~17% per year CAGR

QUARTERLY RESULTS • NOVOZYMES OVERVIEW • STRATEGY • MARKET OVERVIEW • SUSTAINABILITY • FINANCIAL REVIEW 24

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

Established business areas

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

R&D investments in production systems and productivity

Growth platforms

Household

Care

Food &

Beverages

Grain-based

ethanol BioAg

Biomass

Conversion

Animal

Health &

Nutrition

Emerging

industries Technical

industries


Developing new technology and business platforms

Continued development in our technology base…

…creates opportunities to develop new business platform

Biomass

conversion

Bio-

Agriculture

Animal

Health &

Nutrition

Emerging

platforms

Molecular

biology

Bio-informatics

& Systems

biology

Screening

systems

Industrial-scale

fermentation

Strain development

using protein

engineering,

genetic

modification, DNA

sequencing, etc

Application of

computer

algorithms in the

computational

discovery of

enzymes in DNA

databases

Application of high-

throughput robotics

to find the best

enzyme candidates

Production of

enzymes and

proteins whilst

continuously

optimizing and

improving yields


Area Innovation Feasibility Discovery Development Launch Commercial

Household Care Hygiene solutions

Household Care

Tailored emerging markets solutions

Food & Beverage

Vegetable oil processing

Bioenergy Biomass conversion

Agriculture & Feed

Natural growth promotion

Agriculture & Feed

Enhanced corn inoculant

Agriculture & Feed

New transformative BioAg solutions

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. Each of the innovation clusters below can potentially make a significant positive impact on sustainability and sales.


Raw materials

Micro-organisms

Enzymes

Fermentation

Purification

Formulation

Fermentation technology – 3 levers to improve profitability

• All of Novozymes’ solutions are produced via fermentation

• Dedicated R&D investment (10-15% of R&D investment) goes to improving production systems

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

Improve

production strain

Ability to produce more

enzymes per m3

fermentation tank through

genetic engineering of

host organism

Optimize

industrial production

Process optimization

Equipment optimization

Input optimization

Improve

enzyme efficacy

Protein engineering of

enzymes improves

efficacy. Customers

buy efficacy, not

volume


DKK ~5bn spent on acquisitions

Investing for long-term growth; People, CAPEX and M&A, 2000-2015

0

1000

2000

3000

4000

5000

6000

7000

2000 2015

2x employees – from 3,208 FTE to 6,485 FTE

Latin America

Asia Pacific

North America

Denmark & EMEA

>1.5bn DKK

> 500m DKK

>100m DKK

<100m DKK

BioAg

Enzymes

Biopharma

Biologicals

2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6

Earth Bioscience

Philom Bios Turfal

EMD

CropBioscience

Natural

Industries

TJ

Technologies

BioAg Alliance

with Monsanto

Biocon Enzymes

BioGaia Delta GroPep

Iogen

Enzymes

Divestment Roots Octen Gamlen

BETA

Renewables

Sybron Jefferies Semco Roots

29

DKK ~12bn in CAPEX 2000-2015

Pacific Vet


NA 2000-04

2005-09

2010-14

LATAM

APAC

Denmark & EMEA

2015

Divestment Biopharma (Lund) Organo Balance


Market overview

33% of sales in 2015

Household Care Overview

Applications Laundry & dishwasher detergents Novozymes market share

>60% Competition Dupont

31

Current Trends Growth Drivers Growth Barriers

• Better-performing laundry

detergents – also at low

temperatures, reducing water

and energy usage

• Optimization of detergent

formulations to decrease cost

and cost volatility

• More sustainable operations

and products

• Changing consumer

preferences toward liquids

and compacted products

• Customer consolidation

• Sustained low surfactant

prices

• Higher enzyme inclusion and

innovation to improve wash

performance at low

temperatures, improve

sustainability and optimize

formulations

• Demand for better-performing

products in emerging markets

• GDP and population growth in

emerging markets

• Traditional consumer washing

habits, e.g. high temperatures

• Regulations favoring

surfactants over enzymes in

emerging market product

standards

• Technology development

needed to boost enzyme

performance in liquid

detergents

• Sustained low petrochemical

input costs reducing the

adoption rate of high-

performance enzymes

3.514 3.973 4.222 4.353 4.632

7% 11% 9%

4% 1%

2011 2012 2013 2014 2015

Sales Sales DKKm ORG growth


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

300+ brands

~100 countries

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

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

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

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

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

10 best-in-class

product families

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

Intensa Evity®, Blaze Evity®

New stabilization

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

6 enzyme

classes

1 platform of enzyme and microbial technology

Protease Amylase Lipase Cellulase Mannase Pectate Lyase


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

Enzyme spend index per wash load

European high-

performance detergent

European average-


U.S. average-performance

detergent

Emerging markets average-


European high-


2008 2014

60

100

50 50

10

Average-performance detergents offer dual opportunities; to

penetrate more brands and to increase performance with enzyme-

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

US, 65-70%)

Emerging markets offer vast

opportunities for increasing

penetration (~40% today) and

performance

All European high-performance detergents contain enzymes. Over

time, enzyme inclusion can increase with innovation


34

Household Care: Hygiene solutions

Approach and status

• We focus on establishing a

portfolio of solutions

targeting the hygiene

issues i.e. odor and deep-

cleaning and other related

issues

• Hygiene solutions will

allow our customers to

differentiate in the laundry

detergent market through

new claims. Our

experience within laundry,

including sensory and

other assay knowhow puts

us is a good position to

address the issues

• We are exploring a number

of technologies to develop

hygiene solutions together

with our customers

Relevance of

innovation cluster

• The laundry industry is

moving towards cold wash

and less water usage –

both positive trends from a

sustainability perspective

• Especially cold wash result

in increased bacteria-

related odor issues and

general challenges in wash

performance

• Hygiene solutions

addressing these related

issues and challenges

would potentially truly

enable the sustainable

cold wash trend in laundry

and can also enable fewer

re-washes

Next steps

• Identification of the root

causes leading to laundry

hygiene issues (as these

are very different

compared to the traditional

stain cleaning)

• Together with our

customers to develop the

right solutions addressing

unmet consumer needs

and ways to position the

products in the market in

the right way

• Establish a hygiene

platform (portfolio of

technologies and products)

- first products within the

platform are expected

launched within the next 3

years



Food & Beverages Overview

Applications Baking / Starch conversion / Brewing / Beverage alcohol / Healthy concepts Novozymes market share 30-40% Competition DSM, Dupont, regional

35

3.033 3.186 3.190 3.278 3.715

8%

1% 3% 4% 5%

2011 2012 2013 2014 2015

Sales Sales DKKm ORG growth


• Sustainability in production

processes, packaging, etc.

• Food safety and informed food

consumption

• Consumer interest in health

and wellness properties of

food

• More convenience in food

preparation

• Food producer focus on cost

optimization, processing aids

and brand building

• Consolidation of food &

beverage producers

• Growth in processed foods in

emerging markets

• High raw material prices

leading to demand for

production process

optimizations

• Enzymes for safer and

healthier foods

• Growth in grain and oil-seed

processing

• GDP and population growth

as well as industrialization in

emerging markets

• Consumer preferences for

traditional foods

• Consumer skepticism about

technology in food & beverage

production

• Conservative industries

• Fragmented and local markets

and dietary habits


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

Processing of Ag inputs

A global business with global

solutions

Characteristics:

• Starch processing main

business

• Fewer product categories

• DuPont main competitor

• Fragmented global customer

base

• ~60% direct sales

• ~60% emerging markets

Food products

Product-driven for developed

markets

Characteristics:

• Baking main market

• Many products to many end

customers

• Competition more dispersed

and local

• ~80% direct sales

• ~30% emerging markets

Brewing

Starch processing

Beverage

alcohol

Oils & fats

processing

Juice & wine

Baking

Infant food

Acrylamide

reduction Low lactose

Flavor

enhancement


Food & Beverages: Vegetable oil processing

37

Approach and status - Palm Oil Extraction as an

example of activities

• The palm oil industry seeks

to improve its sustainability

footprint. Novozymes is

working together with our

customers to develop the

optimal product solutions in

support of that process

• This could enable palm oil

millers to extract more oil

from existing plant

installations, which is a

significant economic and

sustainability driver for

countries like Malaysia and

Indonesia

• Today ~240 Mln tonnes of

fresh fruit bunch are

harvested and processed

per year. The market is

expected to grow ~5% until

2020

Relevance of

innovation cluster

• Novozymes believes our

technology has the

potential to improve

industrial processes in the

vegetable oil processing –

enabling millers of

vegetable oils such as

palm, soy and rapeseed to

produce more oil with the

same or less input thereby

improving the economic as

well as environmental

footprint of their industry

• We are currently marketing

solutions for soy and

rapeseed processing, and

are exploring additional

applications in these

substrates as well as in

palm processing

Next steps

• Currently Novozymes is

running proof-of-concept

on our first products within

palm oil extraction with

selected customers to

validate performance

improvement

• Developing next

generation solutions for

soy and rapeseed for

broader scope of

application



Bioenergy Overview

Applications Corn ethanol / Biomass conversion -Mainly a U.S. business today Novozymes U.S. market share ~55% Competition Dupont + regional niche

38

1.782 1.748 1.909 2.270

2.543

1%

-9%

12% 19%

-5%

2011 2012 2013 2014 2015

Sales DKKm ORG growthSales


• U.S. corn ethanol industry

affected by overcapacity and

low margins

• Advanced second-generation

biofuels not fully

commercialized

• Low oil prices, putting pressure

on ethanol prices

• Stable and coherent political

mandate to drive adoption of

biofuels

• Innovation for yield

enhancement and chemical

cost reduction

• Demand for CO2 reductions in

transportation sector

• Focus on domestic economy,

energy and job creation

• Lack of political commitment to

set and enforce blending

mandates

• An energy industry with a

vested interest in traditional

fuels

• Competition with other

industries and technologies

• for feedstock conversion

• Competition with other

transportation technologies for

“best way” to reduce CO2

emissions

• Customers focusing on costs in

a low-margin environment

• Low oil prices


Increasing complexity in ethanol production

Advancing enzyme design: Using our diagnostic program to deliver custom

fermentation solutions, tailored to a plant’s unique operating conditions

Why utilize the Custom Solutions program?

• Increasingly unique operating conditions require more targeted solutions to maximize performance

• Operational targets also change with market conditions

• Ability to access Novozymes library including over 25 unique molecules for commercial ethanol production


Past

Basic products for liquefaction

and saccharification

Present

Multiple offerings across

liquefaction and saccharification

Future

Increasingly customized

solutions for liq and sacc, novel

solutions for other process steps

From standard to more customized solutions

The Ethanol Process: Enzymes are applied in multiple stages, along with yeast in fermentation

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

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

0

20

40

60

80

100

120

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

Ind

ex

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

0

5

10

15

20

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

Billio

n G

allo

ns

U.S. ethanol production volumes have stabilized

0

200

400

600

800

1.000

1.200

1.400

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

Millio

n G

allo

ns

U.S. ethanol exports have increased since 2009

0%

2%

4%

6%

8%

10%

12%

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

U.S. Ethanol blend:

~10% of gasoline consumption


Project pipeline biomass conversion

Novozymes serves 5 out of 8 commercial facilities

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

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

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

41

Publicly announced, commercial biomass conversion projects under development by region*

Brazil 4. Raízen

5. GranBio

− Solvay

− CTC

United States 1. POET/DSM

2. Dupont

3. Abengoa

− Beta Renewables

− ZeaChem

− ICM

− Sweetwater

Europe 6. Beta Renewables

7. ST1

− Maabjerg Bioenergy

− Ethanol Europe

− Energo Chemica

India and South East Asia

− Beta Renewables

− India Oil

− CVC India

− Brooke Sarawak

China 8. Longlive

− Petro China

− Cofco

− Tianguan Group

− M&G Chemicals

− NTL

*Non-exhaustive



Agriculture & Feed Overview

42

Feed alliance The BioAg Alliance

Applications Enzymes for

nutritive

enhancement of

feed for pigs and

chicken

Microbes for crop yield

enhancement and to

fend off pests and

diseases

Market

share

25-30%

(enzymes only)

Leading producer of

inoculants. Small

presence in biopesticides

Competition Dupont, AB

Vista, regional

BASF, Bayer, regional

956

1.371 1.617 1.668 1.728

2.130

2%

11% 13%

5% 7%

19%

2010 2011 2012 2013 2014 2015

Sales DKKm ORG growthSales


• Rising demand for food and

feed as populations grow

• Pressure on available land to

farm and sustainability in

farming

• Focus on yield maximization

• Global growth in protein

consumption due to change in

dietary habits

• Increasing consumer

awareness of food supply

origins and integrity

• Growing demand for reduced

use of antibiotics in farm

animals

• High input costs for farmers

• GDP and population growth in

emerging markets

• Increased demand for food

and protein

• Regulatory requirements for

more sustainable farming

practices

• Consumers demanding better

and more sustainable foods

• Focus on animal welfare

• Increased chemical and

fertilizer scarcity

• Low pricing for traditional

fertilizers, pesticides and

crops

• Biotechnology solutions at

relatively early stage of

development

• Technology robustness

• Incomplete scientific

understanding of plant and

animal microbiome

• Unclear regulation


There are approximately

in 1 tablespoon of soil1

Microbial solutions for agriculture

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

43

1. North Carolina State

University Cooperative

Extension

How are microbials applied?

Seed treatment

Foliar

In-furrow

BioControl

• Complements or potentially replaces

chemical pesticides

• Provides additional modes of action

BioYield

• Utilizes nutrients in the soil

• Creates stronger, healthier plants

• Provides new options for sustainable

agriculture


Inoculants hold significant opportunity for market expansion across crops and geographies

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

Global Planted Acres1

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

• Significant opportunity across crops and geographies Inoculants Treated

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

BioAg Existing Product Portfolio

Immediate commercial portfolio

• Working from strong starting position with existing commercial products NA

LATAM

RoW

Current Inoculants Treatment Regime

Advantageous commercial footprint

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

Upstream (Seed Company)

Midstream (Distributor/Retailer)

Downstream (Grower)

1. Source: FAO stats and Internal estimates 2. Internal 2014 estimates

Strong product position Moderate product position Minor product position No current product position

1

2

3


A unique opportunity…to combine Novozymes’ and Monsanto’s capabilities and establish industry's most advanced microbial platform

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

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

The power of The BioAg Alliance

45

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

REGULATORY

REGISTRATIONS

PROCESS

OPTIMIZATION

Extensive microbial library

Strain optimization & formulation

World-class fermentation

Existing microbial products

Unique microbial library

Leading field testing network

Global commercial footprint

Ability to unlock placement with precision

agriculture

The BioAg Alliance

+

DIS

CO

VE

RY

COMMERCIALIZATION

MANUFACTURING SELECTED

MICROBES CUSTOMERS

FIELD

TESTING

SMALL-SCALE

FERMENTATION

DISCOVERY

COLLABORATIONS

IN-LICENSING PRODUCTS &

COMPLEMENTARY TECHNOLOGIES

OUT-LICENSING

OPPORTUNITIES


Building a stronger offering within animal farming

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

46

Partner model

Novozymes

• Screening & in vitro

• Upscaling & production

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

Business development

Adjacency:

enabling

new feed

ingredients

Adjacency:

animal health

additives

(e.g..probiotics

with Adisseo &

PVG acquisition)

Enzymes for

nutritional

enhancement of feed

– a strong core built

over 20 years

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

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

• Enzymatic and microbial solutions for natural growth promotion

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

Partner

• In vivo & application

• Sales & marketing


Attractive value propositions in animal feed enzymes

• Only 3-30%* of phosphate in feed is available to the animal

• Ronozyme NP® releases half of the phosphate bound – Ronozyme HiPhos® releases nearly all of it

• Farmers can save 25-100%* of added mineral phosphate

• Significant reduction in phosphorous excretion from animals

• Maximizing protein utilization and improving nutritional value

• Targets nearly all protein sources in feed • Improves protein digestibility by > 20%*,

increasing feed conversion • Reduces need for additional protein feed,

such as soybean meal

• Xylanase & glucanase increase non-starch polysaccharide digestion

• Amylase improves starch digestibility, releasing more energy

• Cellulase improves fiber digestion • Grain feed savings of ~ 2.5%* • Less pollution (ammonia, nitrate, nitrous

oxide and CO2)

* Dependent on multiple factors – animal species, age, feed composition and other additives

Phytase – phosphate ProAct® – protein Others – energy



Ag & Feed: Natural Growth Promotion

48

Approach and status

As part of our efforts to leverage biological solutions to enable efficiency gains

in animal products, we aim to leverage our capabilities to develop additives for

natural growth promotion

In 2015 we initiated a partnership with Adisseo with the shared ambition to

enter and develop the market for probiotics

In 2016 H1, Alterion® was released together with Adiesseo which is a probiotic

for poultry, as the first product in our innovation cluster “Natural growth

promotion”.

Relevance of innovation cluster

The world needs sustainable efficiency gains in animal production

• 9+ billion people by 2050

• Protein demand to double next 40 years

• Feed costs in 50% of costs in animal production

• Arable land per capita expected to decrease by 35% from 2000 to 2050

• Antibiotic resistance and regulation are driving the need for alternatives

to antibiotics

Improving the yield in animal production would have significantly positive

impact in terms of global warming and use of agricultural land

Alterion® consistently improves the gut health of poultry which yields a lower Feed Conversion Ratio (FCR) and increase Body Weight Gain (BWG).

7% of sales in 2015

Sales Technical & Pharma Overview

Applications Textiles / Leather / Pulp & Paper Albumin / Biocatalysis Novozymes market share ~50% (enzymes only) Competition Dupont + regional

49


• Better and more sustainable

drug delivery and formulation

• Cost-cutting in technical

industries

• Consumer demand in

emerging markets for

improved textile quality and

longevity

• Sustainability in technical

industries such as textiles

• Non-animal, recombinant

input sources in pharma

• Better drug-delivery dosing

regimes

• Fragmented and chemically

driven technical industries

• Conservatism in pharma

production

• Long and resource-intensive

development cycles in pharma

810 710 757

830 982

11%

-5%

6% 9% 6%

2011 2012 2013 2014 2015

Sales DKKm ORG growth


Partner Drug PI PII PIII MA Market

Tanzeum/Eperzan (Albiglutide) - GLP1 for Diabetes

rIX-FP - Once weekly for Hemophilia B

rVIIa-FP - Novel drug for Hemophilia A+B

Albumedix works as a stand-alone pharma company, maturing opportunities within Albumin to maximize value creation

Partner Drug PI PII PIII MA Market

MMR Vaccine and ProQuad

IVF media

Surgical sealent

N/A Cardiovascular surgey device coating

N/A Artificial lung/ lung damage

N/A Stem cell media

N/A Anemia

N/A Urology

N/A Blood marrow / bone cancer

Recombumin® – Drugs manufactured or formulated using Albumedix’ recombinant albumin (product sales revenue)

50

several projects in pre-clinical to PII with large/medium pharma and smaller biotech

Several projects in feasibility and pre-clinical with large/medium pharma and smaller biotech.

Veltis® – Drug candidates using Albumedix’ albumin technologies for half-life extension (license revenue)


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


New long-term targets focus on world impact

New IMPACT targets

Company performance – the traditional view on sustainbaility

World needs – areas where we can make an impact

Social Environmental

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

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

biological solutions

Sustainable

raw materials

Resource

efficiency

Product

stewardship

Health &

Safety

Human &

labor rights

Employee

satisfaction

Sustainable

growth Education

Health and

livelihoods

Climate

change

Novozymes’ unique contribution:

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

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

motivation” • Employee “opportunities for

development” • Women in senior management

Governance (economic)

Corporate

governance

Business

integrity &

antitrust

Economic

growth

Job

creation

Supplychain

management


Steady improvement in employee metrics

We plan to continue our journey of operational excellence

Decoupling resource consumption from economic growth

0%

20%

40%

60%

80%

100%

120%

140%

160%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

% c

han

ge

fro

m 2

00

5 b

as

eli

ne

Sales

Gross profit

Water

Energy

CO2 emissions


0,0%

0,5%

1,0%

1,5%

2,0%

2,5%

3,0%

3,5%

0

2

4

6

8

10

12

Occupational accidentsper million working hours

Employee absence (%)

Remuneration principles for executive leadership

• Novozymes’ principles for Executive Leadership remuneration ensure close alignment with long-term shareholder interests, links remuneration to shareholder gains and losses, and ensures management retention

• In 2015, Executive leadership team of 6 received DKK 51 million in remuneration (incl. pension) + DKK 34 million in expensed stock/based incentive programs

Annual remuneration scheme

Long term incentive program (2014-2016)

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

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

period), stocks in 2017 (no vesting period)

0

2

4

6

8

10

12

14

16

18

Mo

nth

s o

f sala

ry p

er

year

Max 2 months ofbase salary cashbonus linked tofulfilment of EBITand sustainabilitytargets

Max 3 months ofbase salary cashbonus linked tofulfilment ofpersonal targets

Base salary

0

10

20

30

40

50

60

70

80

90

100

0,0 0,5 1,0 1,5 2,0 2,5 3,0 3,5 4,0 4,5 5,0 5,5 6,0

% s

tock &

op

tio

ns a

ward

ed

Bn DKK of accumulated economic profit


Cereals:

110 kg CO2 per ton of bread

Detergent:

50-150 kg CO2 per ton of laundry

Beverage:

25 kg CO2 per 1000 litre of beer

Vegetable oil:

44 kg CO2 per ton of oil

Dairy:

230 kg CO2 per ton of mozzarella

Margarine:

23 kg CO2 per ton of hardstock

Animal feed:

80 kg CO2 per ton of feed

Textile:

1100 kg CO2 per ton of fabric

Agriculture:

15 kg CO2 per ton of corn

Leather:

100 kg CO2 per ton of hide

Paper making:

150 kg CO2 per ton of pulp

Cosmetics:

190 kg CO2 per ton of fatty acid ester

Reducing CO2 emissions together with our customers

In 2015, Novozymes helped customers save

tons of CO2 through the application of

Novozymes’ products, equivalent to taking 25 million cars off the road

Novozymes’ vision: working towards a future where biological solutions create

the necessary balance between a better business, a cleaner environment and better lives



Historical performance demonstrates track record of delivery – I/II

-2%

2%

6%

10%

14%

18%

0

3.000

6.000

9.000

12.000

15.000

Sales Sales DKKm Growth

16%

18%

20%

22%

24%

26%

28%

0

1.000

2.000

3.000

4.000

5.000

EBIT EBIT DKKm EBIT margin

52,0%

52,4%

51,8%

51,8%

52,6%

53,3%

53,7%

53,1%

53,5%

55,6%

55,7%

56,2%

57,2%

57,2%

57,4%

58,1%

50%

52%

54%

56%

58%

60%

Gross margin

4%6%8%

10%12%14%16%18%

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


Historical performance demonstrates track record of delivery – II/II

0

750

1.500

2.250

3.000

3.750

4.500

8%

16%

24%

32%

40%

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

0%

4%

8%

12%

16%

20%

0

300

600

900

1.200

1.500

CAPEX Capex DKKm CAPEX/sales

0

3.000

6.000

9.000

12.000

15.000

8%

12%

16%

20%

24%

28%

ROIC Inv.Cap. DKKm ROIC, incl. goodwill

-0,2

0,0

0,2

0,4

0,6

0,8

1,0

-500

0

500

1.000

1.500

2.000

2.500

NIBD NIBD DKKm NIBD/EBITDA


Limited exposure to raw material fluctuations

Factors impacting COGS development: • Productivity improvements, input prices, currency • Note: accounting practice implies that there is a

time lag between current price levels and COGS Factors impacting Novozymes’ input prices: • Geographical location, e.g., differences in input • Contractual agreements, e.g., timing, duration • Substitution possibilities, i.e., flexibility in use of

different inputs, not dependent upon one source • Price development on other products produced by

our suppliers from the same input

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

35%

20%

45%

Split of COGs

59

Raw materials

Energy, utilities & others

Indirect production costs


Dividend and stock buyback history

• DKK 3.50 dividend per share paid for 2015 up 17%, payout ratio 37.6%

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

• Expected buyback program in 2016 of up to DKK 2 billion

• Accumulated buybacks end of 2015 since IPO were DKK 9.7 billion

• Accumulated dividend and stock buybacks of ~ DKK 16.7 billion since 2000

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

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

Dividend 124 146 162 217 231 255 278 309 326 358 504 600 687 786 925 1.062

DPS 0,33 0,40 0,45 0,63 0,70 0,80 0,90 1,00 1,05 1,15 1,60 1,90 2,20 2,50 3,00 3,50

0,00

0,50

1,00

1,50

2,00

2,50

3,00

3,50

0

500

1.000

1.500

2.000

2.500

3.000

3.500

Div

iden

d p

er

sh

are

, D

KK

DK

K m

illio

n

Dividend / Buybacks

Dividend Buyback DPS

60

Buyback

Dividend

DPS


Shareholder distribution

B shares listed in Copenhagen under the symbol “NZYM B” • Two share classes; A and B shares

• B shares listed in Copenhagen under the symbol “NZYM B”

• “A” share capital and 26,071,400 B shares held by Novo A/S, the management company of the Novo Nordisk Foundation

• As of Aug 2016, Novo A/S owns 25.5% of the share capital and controls 71% of votes (All A shares & ~10% of B shares)

19%

32%

3%

11%

21%

10% 4%

Shareholder distribution

of B common stock*

*Distribution equals where shares are managed, Aug 2016

61

Denmark

Rest of world

Novo A/S

North America

Rest of Europe

Own shares

UK


Nicolai Kobborg

Mobile (DK): +45 3077 1348

E-mail: [email protected]

Martin Riise

Mobile (DK): +45 3077 0738


Klaus Sindahl

Mobile (DK): +45 5363 0134


Investor Relations contacts

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

62

Documents

Road Show presentation Q3 2016...• Novozymes has acquired the Germany-based Organo Balance to strengthen our microbial platform • Novozymes got a record-high score in the DJ Sustainability