Novonesis AS

Earnings Release • Jan 19, 2016

Solid financial results in 2015; 2016 outlook of 8-10% growth in net profit
despite expectations of a challenging year for sales growth

2015: Sales in 2015 grew by 4% organically and by 12% in DKK. EBIT grew by 15%,
and
the EBIT margin was 27.7%. Net profit grew by 12%. In Q4, sales grew by 2%
organically
and by 9% in DKK compared with Q4 2014.

2016: In 2016, organic sales growth is expected at 3-5% (3-5% in DKK). Growth
in EBIT is
also expected at 3-5%, and the EBIT margin is expected to be on par with 2015
at ~28%.
Net profit growth is expected at 8-10%.

Long-term targets: Novozymes maintains its ambition to accelerate sales growth
to 8-
10% organically. However, as a result of the current depressed commodity prices
and the
uncertainties these entail for Bioenergy and growth in emerging markets,
Novozymes
expects annual organic sales growth from 2017 through to the end of the decade
to be in
line with the historical performance of 6-7%. The long-term targets for EBIT
margin, ROIC
and sustainability are unchanged. A new stock buyback program worth up to DKK 2
billion is planned for 2016.

Peder Holk Nielsen, President & CEO of Novozymes, comments:
“We delivered solid financial results in 2015, despite challenges in growing
our sales, particularly in Bioenergy. In 2016, we expect to work our way
through these challenges and deliver solid organic sales growth in the majority
of our business. The focus in 2016 is to get growth back up as soon as
possible, while continuing our cautious cost approach. Profitability is
expected to remain high, enabling us to secure close to double-digit growth in
net profit, and the strength of our balance sheet enables a new 2 billion
kroner stock buyback program.”

Read the full announcement in PDF format.