Novonesis AS — Earnings Release 2016

Apr 20, 2016

Q1 sales growth as expected; 2016 full-year organic sales growth and net profit
outlook maintained

In the first quarter of 2016, sales grew by 2% organically and by 1% in DKK
compared with the first quarter of 2015. EBIT contracted by 3%, and the EBIT
margin was 26.3%, a contraction of ~1 percentage point compared with the first
quarter of 2015. Adjusting for the extraordinary costs related to the
reorganization, the EBIT margin would have expanded to around 28%, and EBIT
growth would have been around 4% compared with the first quarter of 2015. Net
profit grew by 5%. Net investments were DKK 139 million, free cash flow before
acquisitions was DKK 637 million and ROIC (incl. goodwill) was 25.0%.

The outlook for full-year organic sales growth and for net profit growth is
unchanged. The outlook for sales and EBIT growth in DKK is adjusted from 3-5%
to 1-3% to account for the lower currency exchange rates. The outlook for net
investments, free cash flow and ROIC are all unchanged.

Peder Holk Nielsen, President & CEO of Novozymes, comments:
“I’m very satisfied with our sales growth in the first quarter of 2016, given
the tough comparables from the first quarter of last year. We expect that
organic sales growth in the second quarter will be stronger than in the first
quarter. Our profitability is also in line with our expectations, so we’re on
track to deliver on the targets that we set in January.”