Novonesis AS

Earnings Release • Jan 21, 2013

EBIT up 17%, exceeding outlook; long-term financial targets adjusted

Organic sales growth was 4% (7% DKK, 3% LCY) compared with 2011. EBIT increased
by 17%, raising the EBIT margin to 24.4%. Net profit grew by 10%. Strong free
cash flow before acquisitions of DKK 1,581 million exceeded the outlook. For
2013, the EBIT margin is expected to remain at its current high level, while
organic sales growth is expected to increase to 5-8%. Long-term financial
targets adjusted to reflect high profitability and timing of sales growth.

In 2012:

-- Sales grew by 7% in DKK, 3% in LCY and 4% organically vs. 2011
-- The gross margin was 57.2%, 1 %-point up on 2011
-- EBIT was DKK 2,745 million, an increase of 17% compared with 2011
-- The EBIT margin was 24.4%, 2.1 %-points up on 2011
-- Net profit was DKK 2,016 million, an increase of 10% compared with 2011
-- Free cash flow before acquisitions was DKK 1,581 million, vs. DKK 1,393
million for 2011
-- ROIC (including goodwill) was 19.9%, against 21.3% for 2011

“We delivered strong earnings growth and record profitability in a year when
organic sales growth was challenged and came in at 4% – below our ambition,”
says Steen Riisgaard, President & CEO. “With 2012 behind us, we have reviewed
our long-term growth scenarios and decided to adjust our long-term financial
targets. We are still confident that we can reach the long-term average sales
growth target of more than 10%, although not until 2015. Meanwhile,
profitability will remain at current levels, and we are raising our target for
EBIT margin to more than 24%. The ROIC target is confirmed as more than 22%.
The company’s strategy is unchanged and, under the leadership of the new
President & CEO Peder Holk Nielsen, Novozymes will continue to focus on
innovation, partnerships and sustainability.”