Chr. Hansen Holding — Earnings Release 2016

Jan 14, 2016

Company announcement no.02/2016

“We experienced a strong start to 2015/16, and 14% organic revenue growth in Q1
underlines our unique position in markets within microbial and natural color
solutions with attractive growth opportunities. We continue to implement our
Nature’s No. 1 strategy, and I’m very pleased with the progress. We have signed
an agreement to acquire Nutrition Physiology Company, which will expand our
current activities in animal health, and we have entered into our first
commercial partnership in the human microbiome initiative,” says CEO Cees de
Jong.

“Profitability increased in Q1, not least due to the positive impact from the
scalability of our production platform in cultures and enzymes. As a result,
the EBIT margin before special items increased by 2 percentage points to
25.2%”.

“Based on the strong start to the year, we now expect organic revenue growth of
9-11% while the EBIT margin before special items is still expected to be above
the 27.1% achieved in 2014/15.”

2015/16 IN BRIEF

Q1 results

-- Revenue of EUR 214 million, compared to EUR 188 million in 2014/15,
corresponding to organic growth of 14%
-- EBIT before special items of EUR 54 million,
compared to EUR 44 million in 2014/15, an increase of 24%. The EBIT margin
before special items was 25.2%, compared to 23.1% in 2014/15
-- Income taxes of EUR 13 million, equivalent to an effective tax rate of 25%,
compared to 26% in 2014/15
-- Profit for the period of EUR 39 million, compared to EUR 30 million in
2014/15, an increase of 31%
-- Negative free cash flow of EUR 17 million, compared to a negative EUR 30
million in 2014/15
-- Net interest-bearing debt of EUR 513 million, or 1.7x EBITDA, compared to
EUR 432 million, or 1.7x EBITDA, at 30 November 2014.

Progress on Nature’s No. 1

-- On 13 January 2016, Chr. Hansen announced an agreement to acquire Nutrition
Physiology Company (NPC) for a cash consideration reflecting an enterprise
value of USD 185 million, and an EV/EBITDA multiple of 15.9x based on
full-year 2016 estimates before synergies. The details of the agreement are
described in announcement 1/2016 of 13 January 2016, which is attached to
this report as an appendix
-- Chr. Hansen continues to discuss potential partnerships with various
companies within the human microbiome initiative and has signed an
agreement with Caelus Health to develop a production process and pilot
material for clinical trials to explore the use of Eubacterium hallii for
prevention and treatment of metabolic disease
-- Chr. Hansen will hold a Capital Markets Day on 12 April 2016 in Copenhagen
to provide an update on the Nature’s No. 1 strategy.

OUTLOOK FOR 2015/16

The outlook for 2015/16 has been adjusted compared to the announcement of 21
October 2015 (). The agreement to acquire Nutrition Physiology Company is not
impacting the outlook.

Organic revenue growth: 9-11% (previously 8-10%)

Research & development expenditures incurred (% of revenue): 6.5-7.0%
(previously 6.5-7.0%)

EBIT margin before special items: above 2014/15 (previously above 2014/15)

Free cash flow before acquisitions, divestments and special items: above
2014/15 (previously above 2014/15

For further information, please contact:

Anders Mohr Christensen, Senior Director, Investor Relations
Tel: +45 4574 7618

Klara Halkjaer, Head of media relations

Tel: +45 4574 7474

About Chr. Hansen

Chr. Hansen is a global bioscience company that develops natural ingredient
solutions for the food, nutritional, pharmaceutical and agricultural
industries. The products include cultures, enzymes, probiotics and natural
colors, and all solutions are based on strong research and development
competencies coupled with significant technology investments. Revenue in the
2014/15 financial year was EUR 859 million. The company has more than 2,600
dedicated employees in 30 countries and main production facilities in Denmark,
France, USA and Germany. Chr. Hansen was founded in 1874 and is listed on
Nasdaq Copenhagen. For further information, please visit www.chr-hansen.com.