AI assistant
Novonesis AS Interim / Quarterly Report 2017
3377_rns_2017-08-11_e29ba169-3a67-4108-9aa7-9e8ee0f93846.pdf
Interim / Quarterly Report
Open in viewerOpens in your device viewer
1H 2017
August 11, 2017
Interim report for the first half of 2017. Company announcement No. 56
Good first half and momentum in the business
Good first half with 3% organic revenue growth which was better than expected. Household Care +1%, Food & Beverages +8%, Bioenergy +7%, Agriculture & Feed -6%, Technical & Pharma -4%. Excluding reorganization costs, the EBIT margin was 28.5% (1H 2016: ~28%). Maintained 2017 outlook of 2-5% organic sales growth, around 28% reported EBIT margin, DKK 2.0-2.2bn FCF bef. acq. and net profit growth of 2-5%.
Peder Holk Nielsen, President & CEO of Novozymes: "Overall, the first half was good, and better than expected. We had growth in the large segments and delivered 3% organic sales growth with a strong EBIT margin, excluding one-offs. We made important advances in our innovation pipeline within grain milling, vegetable oil and household care opening up new market segments. We should see growth pick up in the second half of the year, but also acknowledge the risk of agriculture-related markets changing swiftly. Consequently, we maintain our full-year expectation for organic growth, while DKK expectations have been adjusted to reflect weaker currencies."
Highlights:
- Organic revenue growth in 1H of 3% (Q2: 2%) and 3% in DKK (Q2: 3%)
- 3 out of 5 segments grew, with Food & Beverages and Bioenergy performing very well
- Agriculture & Feed down due to changed BioAg-sales cycle moving sales from 1H to 2H
- 1H EBIT growth of 3% with a reported EBIT margin of 27.1% (1H 2016: 27.2%)
- 1H EBIT margin at 28.5%, excluding reorganization costs (1H 2016: ~28%)
- Q2 EBIT margin at 28.2%, excluding reorganization costs (Q2 2016: 28.0%)
- Solid free cash flow generation with higher investments as expected
- Exciting pipeline development including 4 product launches in Q2 across segments
- Increasing emerging markets presence, including new application centers
- 2-5% organic growth outlook and ~28% EBIT margin for 2017 maintained. Pick-up in 2H growth still expected, although cautiousness applied for agriculture-related markets
- DKK expectations adjusted following weaker currencies, especially the US dollar
| Realized | 2017 outlook | 2017 outlook | ||
|---|---|---|---|---|
| 1H 2017 | 1H 2016 | August 11* | April 26 | |
| Sales growth, organic | 3% | 3% | 2-5% | 2-5% |
| Sales growth, DKK | 3% | 0% | 1-4% | 3-6% |
| EBIT growth | 3% | 0% | 1-4% | 3-6% |
| EBIT margin | 27.1% | 27.2% | ~28% | ~28% |
| Net profit growth | 1% | 8% | 2-5% | 2-5% |
| Free cash flow before acquisitions, DKKm | 1,325 | 1,354 | 2,000-2,200 | 2,000-2,200 |
*Assumes exchange rates for the company's key currencies remain at the closing rates on August 10th for the rest of 2017.
Novozymes A/S CVR number: 10 00 71 27 UD: 520900T6WNZXG2R3JW38
Rethink Tomorrow
novozymes
Interim report for the first half of 2017. Company announcement No. 56
2/23
Selected key data
| 1H 2017 | 1H 2016 | Q2 2017 | Q2 2016 | |
|---|---|---|---|---|
| Sales growth, organic | 3% | 3% | 2% | 4% |
| - Household Care | 1% | 4% | 1% | 4% |
| - Food & Beverages | 8% | 3% | 10% | 4% |
| - Bioenergy | 7% | -6% | 8% | -6% |
| - Agriculture & Feed | -6% | 1% | -16% | 13% |
| - Technical & Pharma | -4% | 22% | -7% | 9% |
| Sales, DKKm | 7,278 | 7,038 | 3,538 | 3,429 |
| Sales growth, DKK | 3% | 0% | 3% | -1% |
| Gross margin | 58.0% | 57.9% | 58.2% | 58.3% |
| EBITDA, DKKm | 2,471 | 2,375 | 1,206 | 1,194 |
| EBIT, DKKm | 1,973 | 1,911 | 963 | 961 |
| EBIT growth | 3% | 0% | 0% | 3% |
| EBIT margin | 27.1% | 27.2% | 27.2% | 28.0% |
| Net profit, DKKm | 1.507 | 1.496 | 735 | 751 |
| Net profit growth | 1% | 8% | -2% | 10% |
| Net investments excl. acquisitions, DKKm | 614 | 542 | 343 | 403 |
| Free cash flow before acquisitions, DKKm | 1,325 | 1,354 | 587 | 717 |
| Net debt/EBITDA (x) | 0.4 | 0.2 | ||
| ROIC (including goodwill) | 24.5% | 25.4% | ||
| Avg. USD/DKK | 687 | 668 | 676 | 659 |
| EPS, DKK | 5.07 | 4.94 | 2.49 | 2.49 |
| EPS (diluted), DKK | 5.05 | 4.90 | 2.47 | 2.46 |
Rethink Tomorrow
novozymes
Interim report for the first half of 2017. Company announcement No. 56
3/23
Sales and markets
Sales in DKK million and organic/DKK growth rates, 1H year-over-year (y/y) 2017
Distribution of sales, 1H 2017
Household Care
In the first half, sales to the Household Care industry increased by 1% organically and by 3% in DKK. In the second quarter, growth followed the same trends as seen in Q1 and was up 1% organically.
In the developed markets, modest growth was recorded in both North America and EMEA (Europe, the Middle East & Africa). Some large customers in these markets are going through cost-saving programs that affect Novozymes. Sales developed positively in Asia Pacific, with innovation continuing to support the shift from powder to liquid detergents, particularly in China. In Latin America, sales declined again in Q2, as consumers remain under pressure. Although from a lower base, sales for automatic and hand dishwash in Europe continued to drive good growth as customers increasingly focus on performance.
Our top-20 customer program is moving ahead, and we are discussing various tailored solutions, which will enable customers to improve and differentiate themselves in the marketplace.
In the second quarter, Novozymes launched two Household Care products for both emerging (Medley® 2.0) and developed (Progress® excel) markets. The first new product within the freshness and hygiene platform is on track to be launched toward the end of the year.
Household Care:
Organic: +1%
DKK: +3%
Rethink Tomorrow
novozymes
Interim report for the first half of 2017. Company announcement No. 56
4/23
Food & Beverages
Food & Beverages sales grew by 8% organically and by 10% in DKK compared with 1H last year. In Q2 y/y, organic growth stood at 10% and 12% in DKK.
Food & Beverages:
Organic: +8%
DKK: +10%
Growth in Food & Beverages came across most categories. Nutrition, starch and beverages contributed the most in the first half. Baking performed very well in the second quarter, with strong EMEA performance more than offsetting the negative impact from the announced price reductions in the North American freshkeeping market.
Nutrition sales continued to perform solidly into Q2, mainly in the developed markets, driven by increased demand for lactose reduction in dairy and a recovery in enzymes for infant nutrition. Starch contributed to growth, driven by China and North America, although growth in the second quarter was more modest than the high rate experienced in the first quarter. Lastly, sales for Beverages in the first half increased over last year, with sales for distilling and juice and wine as the main contributors. Brewing was on par with last year after a soft second quarter.
Bioenergy
Bioenergy sales grew by 7% organically and by 9% in DKK compared with the first half of last year. In Q2 y/y, organic growth stood at 8% and 10% in DKK.
Bioenergy sales continued the positive development of the first quarter. Sales for US conventional biofuels benefited from continued high production of ethanol and are estimated to have increased by around 4% in the second quarter year-on-year, a similar growth level to the first quarter. Other geographies showed good growth, but represent a smaller part of overall Bioenergy sales.
Sales of enzymes for biomass conversion continued to contribute to Bioenergy sales growth in the second quarter, but still make up a small proportion of Bioenergy sales. Novozymes currently supplies five biomass conversion facilities.
Agriculture & Feed
In Agriculture & Feed, sales declined by 6% both organically and in DKK compared with the first half of last year. Organic growth in Q2 y/y ended down 16%, while growth in DKK was down 14%.
In the first quarter, sales to the animal feed industry were positively impacted by inventory building at our distribution partner. As expected, the inventory level was reduced in the second quarter. For the half year, Novozymes realized moderate sales growth in Feed.
Feed enzymes in-market sales grew satisfactorily, driven by stable demand in the underlying feed market. Within animal probiotics, sales developed positively from a small base as products are being rolled out in the marketplace.
In BioAg, sales declined as expected also in the second quarter of 2017 due to the ongoing change in sales cycles for parts of the business. From a market perspective, farm economics have not improved. Despite these headwinds, we expect an increase in revenue in the second half of the year compared with the year before as a result of both the change in sales cycles, which is shifting sales from the first to the second half of the year, and increased demand for our product Acceleron® B-300 SAT.
BioAg in-market sales grew satisfactorily from an Alliance point of view, despite current headwinds in the agricultural markets. Focus on development and rollout of new products and expanding into new regions to drive long-term growth in BioAg is a key priority.
Bioenergy:
Organic: +7%
DKK: +9%
Agriculture & Feed:
Organic: -6%
DKK: -6%
Rethink Tomorrow
novozymes
Interim report for the first half of 2017. Company announcement No. 56
5/23
In the first half of 2017, Novozymes recognized DKK 63 million (Q1: DKK 30 million) of deferred income as revenue, compared with DKK 84 million (Q1: DKK 52 million) in the first half of 2016.
Technical & Pharma
Sales to Technical & Pharma were down 4% organically and 10% in DKK compared with the first half of 2016. In Q2 y/y, sales declined by 7% both organically and in DKK.
Sales were generally weak in both Pharma and the technical areas, which was partly related to timing.
Technical & Pharma:
Organic: -4%
DKK: -10%
Sales by geography, first half 2017
In the first half, Europe/MEA and Asia Pacific posted good mid-single organic growth, whereas North America and Latin America were on par with last year. Emerging markets grew organically by 2% in the first half of the year, whereas the developed markets grew by 3%.
Europe, the Middle East & Africa
Food & Beverages and Bioenergy posted good growth, whereas Household Care posted modest growth in the first half. Agriculture & Feed and Technical & Pharma declined compared with the first half of 2016.
Europe/MEA 1H y/y:
Organic: +4%
DKK: +3%
North America
Bioenergy, Household Care and Food & Beverages all contributed to growth, whereas Agriculture & Feed and Technical & Pharma declined compared with the same period last year. In particular, BioAg within the Agriculture & Feed segment was down double-digit in both the first and second quarters due to a change in sales cycles.
North America 1H y/y:
Organic: 0%
DKK: +1%
Asia Pacific
In general, there was good traction across segments in Asia Pacific in the first half, with all the large segments contributing to growth. Technical & Pharma was lower, mainly due to lower Pharma sales.
Asia Pacific 1H y/y:
Organic: +5%
DKK: +6%
Latin America
While consumer confidence seems to be improving slowly in Latin America, many markets remain challenged. The flat sales performance in the first half was mainly caused by a negative development in Food & Beverages, while Bioenergy contributed most to growth.
Latin America 1H y/y:
Organic: 0%
DKK: +8%
Rethink Tomorrow
novozymes
Interim report for the first half of 2017. Company announcement No. 56
6/23
Costs and profit
Total costs excluding net financials, share of losses in associates and tax were DKK 5,305 million, an increase of 3% or DKK 178 million compared with the first half of 2016.
Gross profit increased by 3%, and the gross margin was 58.0% in the first half of 2017, up slightly on 57.9% last year. Productivity improvements had a positive impact on the gross margin, somewhat offset by unfavorable mix and price changes.
Operating costs were DKK 2,270 million, an increase of 3% or DKK 70 million, mainly caused by higher sales and distribution costs as well as reorganizations. Operating costs as a percentage of sales were 31%, on par with the first half of 2016.
- Sales and distribution costs increased by 4%, representing 11.6% of sales
- R&D costs increased by 2%, representing 13.5% of sales
- Administrative costs increased by 3%, representing 6.1% of sales, and include the impact of the change to the Executive Leadership Team (DKK 34 million negative impact in Q2 2017)
Other operating income totaled DKK 24 million in the first half of 2017, compared with DKK 34 million in the same period last year.
Depreciation, write-downs and amortization were DKK 498 million, an increase of 7% from DKK 464 million in the first half of 2016. The increase in depreciation was partly attributable to the acquisition of Organobalance last year.
EBIT increased by 3% to DKK 1,973 million, up from DKK 1,911 million in 1H 2016, and the EBIT margin at 27.1% was roughly on par with 27.2% last year. Excluding the extraordinary costs relating to lay-offs in the first quarter of 2017 as well as the cost associated with the change to the Executive Leadership Team in the second quarter, the EBIT margin would have been 28.5% (1H 2016: ~28%). For the second quarter in isolation, excluding the cost associated with the change to the Executive Leadership Team, the EBIT margin would have been 28.2% (Q2 2016: 28.0%).
Net financial costs were DKK 59 million in the first half of 2017, compared with net financial income of DKK 9 million in the same period last year. The higher net financial costs were mainly the result of losses of DKK 27 million on currency hedging/revaluation compared with a gain of DKK 33 million in the first half of 2016. The increase in Other financial items was mainly a result of higher costs associated with employee stock appreciation rights (SARs) of DKK 6 million, compared with a gain of DKK 6 million in 1H 2016. The share of losses in associates was DKK 6 million, compared with a loss of DKK 14 million in the first half of 2016.
Profit before tax was DKK 1,908 million, on par with DKK 1,906 million in the first half of 2016.
The effective tax rate was 21%, compared with 21.5% in the first half of 2016.
Net profit was DKK 1,507 million, an increase of 1% from DKK 1,496 million in the first half of 2016, driven by higher EBIT and a lower tax rate, but partly offset by higher net financial costs due to higher costs associated with currency hedging.
Total costs: +3%
Gross margin: 58.0%
Operating costs: +3%
Depreciation, write-downs and amortization: DKK 498 million
EBIT: DKK 1,973 million
EBIT margin: 27.1%
Net financial costs and share of losses in associates: DKK (65) million
Effective tax rate: 21%
Net profit: DKK 1,507 million
Rethink Tomorrow
novozymes
Interim report for the first half of 2017. Company announcement No. 56
7/23
Cash flow and balance sheet
Cash flow from operating activities was DKK 1,939 million after the first half of 2017, compared with DKK 1,896 million for the same period last year. The higher operating cash flow was mainly the result of a good development in net working capital.
Net investments excluding acquisitions totaled DKK 614 million, compared with DKK 542 million in the first half of 2016. Progress is being made with the new facility in India, our expansion in Nebraska, US, and our innovation campus in Denmark.
Free cash flow before acquisitions decreased by DKK 29 million, or 2%, to DKK 1,325 million, and was driven by higher net investments, partly offset by higher operating cash flow compared with the same period last year.
Shareholders' equity at June 30, 2017 stood at DKK 10,676 million, down 9% from year-end 2016 because of Novozymes returning more than DKK 2.25 billion to shareholders in the first half of 2017 through dividends and stock buybacks. Shareholders' equity was 59% of the balance sheet total, a decrease of 4 percentage points from year-end 2016.
At June 30, 2017, Novozymes had net interest-bearing debt of DKK 1,842 million, compared with DKK 990 million at year-end 2016. Net interest-bearing debt-to-EBITDA was 0.4, compared with 0.2 at year-end 2016.
Return on invested capital (ROIC) including goodwill was 24.5%, compared with 25.4% in the first half of 2016.
At June 30, 2017, the holding of treasury stock was 9,804,685 B shares, equivalent to 3.2% of the common stock. In the first half of 2017, Novozymes repurchased 3,762,914 B shares with a transaction value of DKK 1,061,593 million under the stock buyback program initiated on January 25, 2017.
Operating cash flow: DKK 1,939 million
Net investments: DKK 614 million
Free cash flow before acquisitions: DKK 1,325 million
Equity ratio: 59%
Net interest-bearing debt-to-EBITDA: 0.4
ROIC: 24.5%
Treasury stock: 3.2%
Sustainability
Sustainability performance in the first half of 2017 varied. Performance in occupational accidents relative to target was better, whereas absence was slightly elevated. Water efficiency improvement was also below target. Novozymes expects most of the sustainability targets to be met for the full year, although the water efficiency improvement target might be somewhat challenging following higher utilization rates than expected.
| 1H 2017 | 2017 target | |
|---|---|---|
| Water efficiency improvement on 2014 | 1% | 4% |
| Energy efficiency improvement on 2014 | 7% | 7% |
| CO_{2} intensity reduction on 2014 | 13% | 9% |
| Energy from renewable sources | 23% | 24% |
| Occupational accidents with absence per million working hours | 1.4 | ≤ 2.0 |
| Rate of absence | 2.1% | ≤ 2.0% |
Rethink Tomorrow
novozymes
Interim report for the first half of 2017. Company announcement No. 56
8/23
2017 outlook
| | 2017 outlook
August 11* | 2017 outlook
April 26 | 2017 outlook
January 17 |
| --- | --- | --- | --- |
| Sales growth, organic | 2-5% | 2-5% | 2-5% |
| Sales growth, DKK | 1-4% | 3-6% | 3-6% |
| EBIT growth | 1-4% | 3-6% | 3-6% |
| EBIT margin | ~28% | ~28% | ~28% |
| Net profit growth | 2-5% | 2-5% | 2-5% |
| Net investments excl. acquisitions, DKKm | 1,700-1,900 | 1,700-1,900 | 1,700-1,900 |
| Free cash flow before acquisitions, DKKm | 2,000-2,200 | 2,000-2,200 | 2,000-2,200 |
| ROIC (including goodwill) | 24-25% | 24-25% | 24-25% |
| Avg. USD/DKK | 661 | 687 | 696 |
- Assumes that exchange rates for the company's key currencies remain at the closing rates on August 10 for the rest of 2017.
Sales outlook
Novozymes maintains its full-year organic sales growth outlook of 2-5%. We continue to expect higher second-half y/y organic growth relative to the 3% delivered in the first half y/y, but we also acknowledge the risk of agriculture-related industries changing swiftly. In Food & Beverages we are encouraged by the strong first-half performance and are optimistic about the year, while still acknowledging that it may be difficult to maintain the high growth level for the rest of the year.
The full-year outlook for sales growth in DKK is adjusted due to a weaker currency environment, especially for the USD. Based on current spot rates, DKK growth is now expected at 1-4%.
Household Care (organic: +1% 1H y/y, +1% Q2 y/y) is expected to post modest organic growth for the full year. Emerging markets are increasingly seeing the benefits of enzymatic solutions, and the move from powder to liquid formulations offers interesting opportunities. Developed markets are expected to grow but are currently somewhat challenged by some customers' cost-saving programs. While these dynamics continue for the time being, innovation, performance and differentiation remain in focus.
We continue to focus on innovation in both existing and new enzyme technologies, unlocking higher enzyme penetration and providing support to our market position. The first product launch from the freshness and hygiene platform is expected toward the end of 2017.
Food & Beverages (organic: +8% 1H y/y, +10% Q2 y/y) organic sales growth is expected to be driven primarily by new products launched in the grain-processing industry in 2016 and 2017. Baking is still expected to be impacted by price reductions in the North American freshkeeping market, while sales are expected to perform well in other markets. In general, most of the industries within Food & Beverages are doing well after the first half. We are encouraged by the strong first-half performance and are optimistic about the year, while still acknowledging that it may be difficult to maintain the high growth level for the rest of the year.
Bioenergy (organic: +7% 1H y/y, +8% Q2 y/y) organic sales growth is expected to be driven by new product launches and to some extent by market share gains. After the first half, US ethanol production was up around 4% y/y (Q2 y/y ~4%). We expect US ethanol production for 2017 to be slightly up on 2016. We note relatively high US ethanol inventory levels and expect lower 2H y/y
Organic sales growth: 2-5%
DKK sales growth: 1-4%
Rethink Tomorrow
novozymes
Interim report for the first half of 2017. Company announcement No. 56
9/23
US ethanol production growth relative to what we have seen in 1H y/y. Global sales to the emerging biomass conversion industry are expected to contribute to sales growth, although still at a low level. For biomass conversion, we started to see increasing capacity utilization in the fourth quarter of 2016.
Agriculture & Feed (organic: -6% 1H y/y, -16% Q2 y/y) organic sales growth is expected to be driven mainly by animal feed. For BioAg, farm economics remain challenged, resulting in modest expectations for BioAg. For the second half, and due to a change in sales cycles from the first to the second half, we should see a rebound in sales after the negative first-half performance. Novozymes expects to recognize around DKK 200 million of the deferred BioAg income as sales in 2017. Deferred income does not impact the calculation of organic sales growth rates; it impacts realized sales growth in DKK and has no cash flow impact.
Technical & Pharma (organic: -4% 1H y/y, -7% Q2 y/y) organic sales growth is expected to be roughly on par with 2016. Revenue is volatile in the Pharma part of the business (~1/3 of full-year segment sales) due to the relatively high value of small batches with limited predictability in the quarterly offtake.
Profit outlook
Underlying EBIT growth outlook for the full year is maintained. EBIT growth in DKK is now expected at 1-4% from previously 3-6%. This adjustment is fully related to a weaker currency environment and is similar to the updated sales growth outlook in DKK of 1-4%. The change to the Executive Leadership Team announced in June has an impact of roughly half a percentage point on the EBIT growth guidance.
EBIT margin (27.1% reported after the first half) guidance is maintained at around 28% for the full year, which implies an improvement in the reported EBIT margin in the second half of the year. Excluding reorganization costs, the first-half EBIT margin was 28.5%. We expect margins to benefit from sales growth and productivity improvements, while we invest further to increase our presence in emerging markets to support higher sales growth.
The effective tax rate for the year is expected to be around 21%.
Net profit is expected to grow by 2-5%.
Net investments are expected to be DKK 1,700-1,900 million. Maintenance investments and manufacturing capacity expansions will drive investments, along with expansions in R&D, notably the new innovation campus in Denmark.
Free cash flow before acquisitions is expected to be DKK 2,000-2,200 million.
Return on invested capital including goodwill is expected at 24-25%.
EBIT growth: 1-4%
EBIT margin: ~28%
Effective tax rate: ~21%
Net profit growth: 2-5%
Free cash flow before acq.: DKK 2,000-2,200 million
ROIC: 24-25%
Rethink Tomorrow
novozymes
Interim report for the first half of 2017. Company announcement No. 56
10/23
Currency exposure
Sales by currency, 2016
From a currency perspective, we expect 2017 EBIT to be most exposed to fluctuations in the USD and EUR.
Other things being equal, a +5% movement in USD/DKK is expected to have an annual positive impact on EBIT of DKK 100-120 million, and vice versa.
Other things being equal, a +5% movement in EUR/DKK is expected to have an annual positive impact on EBIT of DKK 150-200 million, and vice versa.
Hedging of net currency exposure
| 2017 | ||||
|---|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | |
| USD | ~100% hedged; ~90% via forward contracts at 6.66 USD/DKK and ~10% via options at 6.60 | |||
| EUR | - | - | - | - |
The outlook is based on exchange rates for the company's key currencies remaining at the closing rates on August 10 for the full year.
| (DKK) | EUR | USD | BRL | CNY |
|---|---|---|---|---|
| Average exchange rate 2016 | 745 | 673 | 194 | 101 |
| Average exchange rate, 1H 2016 | 745 | 668 | 181 | 102 |
| Average exchange rate, 1H 2017 | 744 | 687 | 216 | 101 |
| Estimated average exchange rate 2017 at April 25th | 744 | 687 | 218 | 100 |
| Closing rate August 10, 2017 | 744 | 634 | 201 | 95 |
| Estimated average exchange rate 2017* | 744 | 661 | 209 | 98 |
| Change in estimated exchange rate 2017 compared with estimated average exchange rate at April 25th | 0% | -4% | -4% | -2% |
- Estimated average exchange rate is the average exchange rate year-to-date June and closing rate on August 10, 2017 for the remainder of the year
Rethink Tomorrow
novozymes
Interim report for the first half of 2017. Company announcement No. 56
11/23
Pipeline update
Novozymes' pipeline contains more than 100 research projects across the business. The chart below shows some of the major innovation areas in which Novozymes is investing. These innovation programs represent significant market-expanding growth opportunities in terms of sales, and have the potential to significantly improve sustainability. Many exciting advancements took place during Q2 2017, with Novozymes' grain-milling and vegetable oil-processing programs moving from the "Development" to the "Launch" stage.
Developments so far in 2017 in the "major innovation areas:"
In the first quarter:
1) The enhanced corn inoculant advanced to "Commercial" stage with the launch of Acceleron® B-300 SAT by The BioAg Alliance.
2) The grain-milling program advanced from "Discovery" to "Development."
In the second quarter:
1) Vegetable oil-processing technology for enhancing yields and process improvements in palm oil production moved to "Launch" stage (Palmora®).
2) Grain-milling technology moved to "Launch" stage. In particular, the enzymatic technology provides better yield and process improvements (Frontia®).
| Area | Innovation | Feasibility | Discovery | Development | Launch | Commercial |
|---|---|---|---|---|---|---|
| Household Care | Enzyme solutions | ☑ | ☑ | ☐ | ☐ | ☐ |
| Household Care | Tailored emerging markets solutions | ☑ | ☑ | ☐ | ☐ | ☐ |
| Food & Beverages | Vegetable oil processing | ☑ | ☑ | ☑ | → | ☐ |
| Food & Beverages | Grain milling | ☑ | ☑ | ☑ | → | ☐ |
| Agriculture & Feed | Natural growth promotion | ☑ | ☑ | ☑ | ☐ | ☐ |
| Agriculture & Feed | Enhanced corn inoculant | ☑ | ☑ | ☑ | ☑ | ☐ |
| Agriculture & Feed | New maintenance living solutions | ☑ | ☐ | ☐ | ☐ | ☐ |
| Bioenergy | Biomass conversion | ☑ | ☑ | ☑ | ☐ | ☐ |
In the second quarter, we also launched two products in Household Care:
Medley® 2.0 – a combined enzyme solution for better wash performance targeting small and medium-sized producers in emerging markets.
Progress® excel – a premium protease allowing formulation flexibility with premium wash performance at all temperatures.
Rethink Tomorrow
novozymes
Interim report for the first half of 2017. Company announcement No. 56
12/23
Accounting policies
The interim report for the first six months of 2017 has been prepared in accordance with IAS 34 and the additional Danish regulations for the presentation of quarterly interim reports by listed companies. The interim report for the first six months of 2017 follows the same accounting policies as the annual report for 2016, except for all new, amended or revised accounting standards and interpretations (IFRSs) endorsed by the EU effective for the accounting period beginning on January 1, 2017. These IFRSs have not had any impact on the Group's interim report. In the event of any inconsistencies between this stock exchange announcement and the Danish stock exchange announcement, this document shall prevail.
Forward-looking statements
This company announcement 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 market-expanding growth platforms, notably the development of microbial solutions for broad-acre crops; vi) political conditions, such as acceptance of enzymes produced by genetically modified organisms; vii) 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 for inputs 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.
Contact information
| Investor Relations: | ||
|---|---|---|
| Tobias Bjorklund | +45 3077 8682 | [email protected] |
| Klaus Sindahl | +45 5363 0134 | [email protected] |
| Elsebeth Kjaersgaard | [email protected] | |
| Press and media: | ||
| Rene Tronborg (DK) | +45 3077 2274 | [email protected] |
| Frederik Bjoerndal (US) | +1 646 671 3897 | [email protected] |
| Johan Melchior (DK) | +45 3077 0690 | [email protected] |
Rethink Tomorrow
novozymes
Interim report for the first half of 2017. Company announcement No. 56
13/23
Statement of the Board of Directors and Executive Leadership Team
The Board of Directors and the Executive Leadership Team have considered and approved the interim report for Novozymes A/S for the first six months of 2017. The interim report has not been audited or reviewed by the company's independent auditor.
The interim report for the first six months of 2017 has been prepared in accordance with IAS 34 and the additional Danish regulations for the presentation of quarterly interim reports by listed companies.
In our opinion the accounting policies used are appropriate, the Group's internal controls relevant to preparation and presentation of an interim report are adequate, and the interim report gives a true and fair view of the Group's assets, liabilities, net profit and financial position at June 30, 2017, and of the results of the Group's operations and cash flow for the first six months of 2017.
We further consider that the Management review in the preceding pages gives a true and fair view of the development in the Group's activities and business, the profit for the period and the Group's financial position as a whole, and a description of the most significant risks and uncertainties to which the Group is subject.
Bagsvaerd, August 11, 2017
EXECUTIVE MANAGEMENT
Peder Holk Nielsen
President & CEO
Thomas Videbæk
COO
BOARD OF DIRECTORS
Jørgen Buhl Rasmussen
Chairman
Agnete Raaschou-Nielsen
Vice Chairman
Lars Green
Lena Bech Holskov
Anders Hentze Knudsen
Kasim Kutay
Lars Bo Køppler
Kim Stratton
Mathias Uhlén
Rethink Tomorrow
novozymes
Interim report for the first half of 2017. Company announcement No. 56
14/23
Appendices
| Appendix 1 | Main items and key figures | 15 |
|---|---|---|
| 1.1 Key figures | 15 | |
| 1.2 Income statement | 16 | |
| 1.3 Statement of comprehensive income | 17 | |
| Appendix 2 | Distribution of revenue | 18 |
| 2.1 By industry | 18 | |
| 2.2 By geography | 18 | |
| Appendix 3 | Statement of cash flows | 19 |
| 3.1 Statement of cash flows | 19 | |
| Appendix 4 | Balance sheet and Statement of shareholders’ equity | 20 |
| 4.1 Balance sheet, Assets | 20 | |
| 4.2 Balance sheet, Liabilities | 21 | |
| 4.3 Statement of shareholders’ equity | 22 | |
| Appendix 5 | Miscellaneous | 23 |
| 5.1 Product launches in 2017 | 23 | |
| 5.2 Company announcements for the fiscal year 2017 | 23 | |
| 5.3 Financial calendar | 23 |
Novozymes A/S CVR number: 10 00 71 27 UD: 520900TBWNZX02R3JW38
Rethink Tomorrow
novozymes
Interim report for the first half of 2017. Company announcement No. 56
15/23
Appendix 1 Main items and key figures
1.1 Key figures
| (DKK million) | 1H 2017 | 1H 2016 | % change | Q2 2017 | Q2 2016 | % change |
|---|---|---|---|---|---|---|
| Revenue | 7,278 | 7,038 | 3% | 3,538 | 3,429 | 3% |
| Gross profit | 4,219 | 4,077 | 3% | 2,058 | 1,998 | 3% |
| Gross margin | 58.0% | 57.9% | 58.2% | 58.3% | ||
| EBITDA | 2,471 | 2,375 | 4% | 1,206 | 1,194 | 1% |
| EBITDA margin | 34.0% | 33.7% | 34.1% | 34.8% | ||
| Operating profit / EBIT | 1,973 | 1,911 | 3% | 963 | 961 | 0% |
| EBIT margin | 27.1% | 27.2% | 27.2% | 28.0% | ||
| Share of losses in associates | (6) | (14) | (3) | (4) | ||
| Net financials | (59) | 9 | (29) | (6) | ||
| Profit before tax | 1,908 | 1,906 | 0% | 931 | 951 | (2)% |
| Tax | (401) | (410) | (2)% | (196) | (200) | (2)% |
| Net profit | 1,507 | 1,496 | 1% | 735 | 751 | (2)% |
| Earnings per DKK 2 share | 5.07 | 4.94 | 3% | 2.49 | 2.49 | (0)% |
| Earnings per DKK 2 share (diluted) | 5.05 | 4.90 | 3% | 2.47 | 2.46 | 0% |
| Net investments | 614 | 542 | ||||
| Free cash flow before acq. and purchase of financial assets | 1,325 | 1,354 | ||||
| Return on invested capital (ROIC) incl. goodwill | 24.5% | 25.4% | ||||
| Net interest-bearing debt | 1,842 | 1,136 | ||||
| Equity ratio | 59.1% | 61.7% | ||||
| Return on equity | 26.9% | 26.5% | ||||
| Debt-to-equity | 17.3% | 10.4% | ||||
| NIBD / EBITDA | 0.4 | 0.2 | ||||
| Number of employees | 6,284 | 6,385 | ||||
| Novozymes' stock | Jun. 30, 2017 | Jun. 30, 2016 | ||||
| --- | --- | --- | ||||
| Common stock (million) | 305.0 | 310.0 | ||||
| Net worth per share (DKK) | 34.96 | 35.32 | ||||
| Denomination of share (DKK) | 2.00 | 2.00 | ||||
| Nominal value of common stock (DKK million) | 610.0 | 620.0 | ||||
| Treasury stock (million) | 9.8 | 9.6 |
Rethink Tomorrow
novozymes
Interim report for the first half of 2017. Company announcement No. 56
16/23
1.2 Income statement
| (DKK million) | 1H 2017 | 1H 2016 | Q2 2017 | Q2 2016 |
|---|---|---|---|---|
| Revenue | 7,278 | 7,038 | 3,538 | 3,429 |
| Cost of goods sold | (3,059) | (2,961) | (1,480) | (1,431) |
| Gross profit | 4,219 | 4,077 | 2,058 | 1,998 |
| Sales and distribution costs | (846) | (810) | (405) | (392) |
| Research and development costs | (980) | (958) | (477) | (456) |
| Administrative costs | (444) | (432) | (224) | (214) |
| Other operating income, net | 24 | 34 | 11 | 25 |
| Operating profit / EBIT | 1,973 | 1,911 | 963 | 961 |
| Share of losses in associates | (6) | (14) | (3) | (4) |
| Net financials | (59) | 9 | (29) | (6) |
| Profit before tax | 1,908 | 1,906 | 931 | 951 |
| Tax | (401) | (410) | (196) | (200) |
| Net profit | 1,507 | 1,496 | 735 | 751 |
| Attributable to | ||||
| Shareholders in Novozymes A/S | 1,507 | 1,494 | 736 | 750 |
| Non-controlling interests | - | 2 | (1) | 1 |
| Specification of net financials | ||||
| Foreign exchange gain/ (loss), net | (27) | 33 | (15) | 17 |
| Interest income/ (costs) | (11) | (13) | (5) | (8) |
| Other financial items | (21) | (11) | (9) | (15) |
| Net financials | (59) | 9 | (29) | (6) |
| Earnings per DKK 2 share | 5.07 | 4.94 | 2.49 | 2.49 |
| Average no. of A/B shares outstanding (million) | 297.0 | 302.3 | 296.2 | 301.4 |
| Earnings per DKK 2 share (diluted) | 5.05 | 4.90 | 2.47 | 2.46 |
| Average no. of A/B shares, diluted (million) | 298.5 | 305.2 | 298.0 | 304.4 |
Rethink Tomorrow
novozymes
Interim report for the first half of 2017. Company announcement No. 56
17/23
1.3 Statement of comprehensive income
| (DKK million) | 1H 2017 | 1H 2016 | Q2 2017 | Q2 2016 |
|---|---|---|---|---|
| Net profit | 1,507 | 1,496 | 735 | 751 |
| Currency translation of subsidiaries and non-controlling interests | (620) | (154) | (583) | 169 |
| Tax on currency translation of subsidiaries | 19 | 2 | 15 | (8) |
| Currency translation adjustments | (601) | (152) | (568) | 161 |
| Fair value adjustments | 92 | 29 | 70 | (16) |
| Tax on fair value adjustments | (20) | (7) | (15) | 2 |
| Fair value adjustments reclassified to Financial income/ costs | 32 | (26) | 8 | (33) |
| Tax on reclassified fair value adjustments | (7) | 6 | (2) | 8 |
| Cash flow hedges | 97 | 2 | 61 | (39) |
| Other comprehensive income | (504) | (150) | (507) | 122 |
| Comprehensive income | 1,003 | 1,346 | 228 | 873 |
| Attributable to | ||||
| Shareholders in Novozymes A/S | 1,003 | 1,345 | 229 | 873 |
| Non-controlling interests | - | 1 | (1) | - |
Rethink Tomorrow
novozymes
Interim report for the first half of 2017. Company announcement No. 56
18/23
Appendix 2 Distribution of revenue
2.1 By industry
| (DKK million) | 2017 1H | 2016 1H | % change | % currency impact | % M&A impact | % organic growth |
|---|---|---|---|---|---|---|
| Household Care | 2,397 | 2,330 | 3 | 2 | 0 | 1 |
| Food & Beverages | 2,042 | 1,856 | 10 | 2 | 0 | 8 |
| Bioenergy | 1,309 | 1,196 | 9 | 2 | 0 | 7 |
| Agriculture & Feed | 1,010 | 1,078 | (6) | 0 | 0 | (6) |
| Technical & Pharma | 520 | 578 | (10) | 1 | (7) | (4) |
| Sales | 7,278 | 7,038 | 3 | 1 * | (1) | 3 |
- The effect from changes in deferred income in BioAg is included in the currency impact. Realized currency impact was 1.7%.
| (DKK million) | 2017 Q2 | 2016 Q2 | % change | % currency impact | % M&A impact | % organic growth |
|---|---|---|---|---|---|---|
| Household Care | 1,181 | 1,154 | 2 | 1 | 0 | 1 |
| Food & Beverages | 1,041 | 930 | 12 | 2 | 0 | 10 |
| Bioenergy | 628 | 570 | 10 | 2 | 0 | 8 |
| Agriculture & Feed | 428 | 496 | (14) | 2 | 0 | (16) |
| Technical & Pharma | 260 | 279 | (7) | 0 | 0 | (7) |
| Sales | 3,538 | 3,429 | 3 | 1 * | 0 | 2 |
- The effect from changes in deferred income in BioAg is included in the currency impact. Realized currency impact was 1.4%.
| (DKK million) | 2017 | 2016 | % change | ||||
|---|---|---|---|---|---|---|---|
| Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q2/Q2 | |
| Household Care | 1,181 | 1,216 | 1,218 | 1,154 | 1,154 | 1,176 | 2 |
| Food & Beverages | 1,041 | 1,001 | 937 | 947 | 930 | 926 | 12 |
| Bioenergy | 628 | 681 | 663 | 579 | 570 | 626 | 10 |
| Agriculture & Feed | 428 | 582 | 676 | 452 | 496 | 582 | (14) |
| Technical & Pharma | 260 | 260 | 220 | 258 | 279 | 299 | (7) |
| Sales | 3,538 | 3,740 | 3,714 | 3,390 | 3,429 | 3,609 | 3 |
2.2 By geography
| (DKK million) | 2017 1H | 2016 1H | % change | % currency impact | % M&A impact | % organic growth |
|---|---|---|---|---|---|---|
| Europe, Middle East & Africa | 2,651 | 2,586 | 3 | 1 | (2) | 4 |
| North America | 2,452 | 2,416 | 1 | 1 | 0 | 0 |
| Asia Pacific | 1,475 | 1,387 | 6 | 1 | 0 | 5 |
| Latin America | 700 | 649 | 8 | 8 | 0 | 0 |
| Sales | 7,278 | 7,038 | 3 | 1 * | (1) | 3 |
- The effect from changes in deferred income in BioAg is included in the currency impact. Realized currency impact was 1.7%.
| (DKK million) | 2017 Q2 | 2016 Q2 | % change | % currency impact | % M&A impact | % organic growth |
|---|---|---|---|---|---|---|
| Europe, Middle East & Africa | 1,303 | 1,246 | 5 | 1 | 0 | 4 |
| North America | 1,161 | 1,141 | 2 | 1 | 0 | 1 |
| Asia Pacific | 739 | 695 | 6 | 1 | 0 | 5 |
| Latin America | 335 | 347 | (3) | 9 | 0 | (12) |
| Sales | 3,538 | 3,429 | 3 | 1 * | 0 | 2 |
- The effect from changes in deferred income in BioAg is included in the currency impact. Realized currency impact was 1.4%.
| (DKK million) | 2017 | 2016 | % change | ||||
|---|---|---|---|---|---|---|---|
| Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q2/Q2 | |
| Europe, Middle East & Africa | 1,303 | 1,348 | 1,260 | 1,261 | 1,246 | 1,340 | 5 |
| North America | 1,161 | 1,291 | 1,276 | 1,063 | 1,141 | 1,275 | 2 |
| Asia Pacific | 739 | 736 | 731 | 673 | 695 | 692 | 6 |
| Latin America | 335 | 365 | 447 | 393 | 347 | 302 | (3) |
| Sales | 3,538 | 3,740 | 3,714 | 3,390 | 3,429 | 3,609 | 3 |
Rethink Tomorrow
novozymes
Interim report for the first half of 2017. Company announcement No. 56
19/23
Appendix 3 Statement of cash flows
3.1 Statement of cash flows
| (DKK million) | 1H 2017 | 1H 2016 |
|---|---|---|
| Net profit | 1,507 | 1,496 |
| Reversals of non-cash items | 862 | 937 |
| Tax paid | (284) | (295) |
| Interest received | 3 | 2 |
| Interest paid | (16) | (15) |
| Cash flow before change in working capital | 2,072 | 2,125 |
| Change in working capital | ||
| (Increase)/ decrease in receivables | 22 | 103 |
| (Increase)/ decrease in inventories | (122) | (74) |
| Increase/ (decrease) in trade payables and other liabilities | (39) | (266) |
| Increase/ (decrease) in exchange gain/ loss | 6 | 8 |
| Cash flow from operating activities | 1,939 | 1,896 |
| Investments | ||
| Purchase of intangible assets | (44) | (59) |
| Sale of property, plant and equipment | 21 | 17 |
| Purchase of property, plant and equipment | (591) | (500) |
| Cash flow from investing activities before acquisitions and purchase of financial assets | (614) | (542) |
| Free cash flow before acquisitions and purchase of financial assets | 1,325 | 1,354 |
| Business acquisitions and purchase of financial assets | (3) | - |
| Free cash flow | 1,322 | 1,354 |
| Financing | ||
| Borrowings | 650 | 1,196 |
| Repayments of borrowings | (137) | (692) |
| Purchase of treasury stock | (1,062) | (1,020) |
| Sale of treasury stock | 94 | 26 |
| Dividend paid | (1,192) | (1,061) |
| Cash flow from financing activities | (1,647) | (1,551) |
| Net cash flow | (325) | (197) |
| Unrealized gain/ (loss) on currencies and financial assets, included in cash and cash equivalents | (15) | (3) |
| Change in cash and cash equivalents, net | (340) | (200) |
| Cash and cash equivalents, net, at January 1 | 805 | 796 |
| Cash and cash equivalents, net, at June 30 | 465 | 596 |
Undrawn committed credit facilities at June 30, 2017, were DKK 2,910 million.
Rethink Tomorrow
novozymes
Interim report for the first half of 2017. Company announcement No. 56
Appendix 4 Balance sheet and Statement of shareholders' equity
4.1 Balance sheet, Assets
| (DKK million) | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 |
|---|---|---|---|
| Completed IT development projects | 121 | 113 | 125 |
| Acquired patents, licenses and know-how | 1,280 | 1,324 | 1,404 |
| Goodwill | 1,132 | 1,122 | 1,159 |
| IT development projects in progress | 64 | 20 | 49 |
| Intangible assets | 2,597 | 2,579 | 2,737 |
| Land and buildings | 2,775 | 2,831 | 2,931 |
| Plant and machinery | 3,976 | 4,096 | 4,239 |
| Other equipment | 527 | 575 | 615 |
| Assets under construction and prepayments | 1,229 | 705 | 856 |
| Property, plant and equipment | 8,507 | 8,207 | 8,641 |
| Deferred tax assets | 578 | 462 | 607 |
| Other financial assets (non-interest-bearing) | 138 | 139 | 151 |
| Investment in associate | 66 | 76 | 73 |
| Other receivables | 28 | 76 | 57 |
| Non-current assets | 11,914 | 11,539 | 12,266 |
| Raw materials and consumables | 344 | 325 | 327 |
| Goods in progress | 666 | 615 | 671 |
| Finished goods | 1,550 | 1,401 | 1,490 |
| Inventories | 2,560 | 2,341 | 2,488 |
| Trade receivables | 2,536 | 2,471 | 2,680 |
| Tax receivables | 90 | 372 | 142 |
| Other receivables | 278 | 311 | 267 |
| Receivables | 2,904 | 3,154 | 3,089 |
| Other financial assets (non-interest-bearing) | 35 | 12 | 4 |
| Other financial assets | 35 | 12 | 4 |
| Cash and cash equivalents | 647 | 711 | 812 |
| Current assets | 6,146 | 6,218 | 6,393 |
| Assets | 18,060 | 17,757 | 18,659 |
Rethink Tomorrow
novozymes
Interim report for the first half of 2017. Company announcement No. 56
21/23
4.2 Balance sheet, Liabilities
| (DKK million) | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 |
|---|---|---|---|
| Common stock | 610 | 620 | 620 |
| Currency translation adjustments | 69 | 387 | 670 |
| Cash flow hedges | 56 | 22 | (41) |
| Retained earnings | 9,928 | 9,920 | 10,483 |
| Equity attributable to shareholders in Novozymes A/ S | 10,663 | 10,949 | 11,732 |
| Non-controlling interests | 13 | 14 | 13 |
| Shareholders' equity | 10,676 | 10,963 | 11,745 |
| Deferred tax liabilities | 867 | 733 | 854 |
| Provisions | 198 | 188 | 231 |
| Deferred income | 484 | 678 | 540 |
| Other financial liabilities (interest-bearing) | 1,688 | 1,717 | 1,713 |
| Other financial liabilities (non-interest-bearing) | 9 | 21 | 14 |
| Non-current liabilities | 3,246 | 3,337 | 3,352 |
| Other financial liabilities (interest-bearing) | 801 | 130 | 89 |
| Other financial liabilities (non-interest-bearing) | 5 | 27 | 111 |
| Provisions | 86 | 68 | 61 |
| Trade payables | 1,134 | 1,060 | 1,194 |
| Deferred income | 245 | 226 | 248 |
| Tax payables | 421 | 662 | 437 |
| Other payables | 1,446 | 1,284 | 1,422 |
| Current liabilities | 4,138 | 3,457 | 3,562 |
| Liabilities | 7,384 | 6,794 | 6,914 |
| Liabilities and shareholders' equity | 18,060 | 17,757 | 18,659 |
Rethink Tomorrow
novozymes
Interim report for the first half of 2017. Company announcement No. 56
22/23
4.3 Statement of shareholders' equity
| (DKK million) | Attributable to shareholders in Novozymes A/S | Non-controlling interests | Total | ||||
|---|---|---|---|---|---|---|---|
| Common stock | Currency translation adjustments | Cash flow hedges | Retained earnings | Total | |||
| Shareholders' equity at January 1, 2017 | 620 | 670 | (41) | 10,483 | 11,732 | 13 | 11,745 |
| Net profit for the period | 1,507 | 1,507 | - | 1,507 | |||
| Other comprehensive income for the period | (601) | 97 | (504) | - | (504) | ||
| Total comprehensive income for the period | (601) | 97 | 1,507 | 1,003 | - | 1,003 | |
| Purchase of treasury stock | (1,062) | (1,062) | (1,062) | ||||
| Sale of treasury stock | 94 | 94 | 94 | ||||
| Write-down of common stock | (10) | 10 | - | - | |||
| Dividend | (1,192) | (1,192) | - | (1,192) | |||
| Stock-based payment | 46 | 46 | 46 | ||||
| Tax related to equity items | 42 | 42 | 42 | ||||
| Changes in shareholders' equity | (10) | (601) | 97 | (555) | (1,069) | - | (1,069) |
| Shareholders' equity at June 30, 2017 | 610 | 69 | 56 | 9,928 | 10,663 | 13 | 10,676 |
| Shareholders' equity at January 1, 2016 | 626 | 538 | 20 | 10,396 | 11,580 | 13 | 11,593 |
| Net profit for the period | 1,494 | 1,494 | 2 | 1,496 | |||
| Other comprehensive income for the period | (151) | 2 | (149) | (1) | (150) | ||
| Total comprehensive income for the period | - | (151) | 2 | 1,494 | 1,345 | 1 | 1,346 |
| Purchase of treasury stock | (1,020) | (1,020) | (1,020) | ||||
| Sale of treasury stock | 26 | 26 | 26 | ||||
| Write-down of common stock | (6) | 6 | - | - | |||
| Dividend | (1,061) | (1,061) | - | (1,061) | |||
| Stock-based payment | 84 | 84 | 84 | ||||
| Tax related to equity items | (5) | (5) | (5) | ||||
| Changes in shareholders' equity | (6) | (151) | 2 | (476) | (631) | 1 | (630) |
| Shareholders' equity at June 30, 2016 | 620 | 387 | 22 | 9,920 | 10,949 | 14 | 10,963 |
Rethink Tomorrow
novozymes
Interim report for the first half of 2017. Company announcement No. 56
23/23
Appendix 5 Miscellaneous
5.1 Product launches in 2017
| Q1 2017 | Acceleron® B-200 SAT – an enhanced isoflavonoid formulation that enables additional upstream treatment in soybeans. The product stimulates the growth of beneficial microbes in the soil to improve nutritional uptake, leading to improved plant health. |
|---|---|
| Q1 2017 | Spirizyme® T – an advanced suite of glucoamylase enzymes with trehalase, which is an enzyme that converts trehalose, a type of sugar that is normally hard to ferment into ethanol, thus reducing residual starch and sugars and increasing ethanol yield. |
| Q2 2017 | Medley® 2.0 – second generation of our blended enzyme solutions. Medley® is a plug-and-play solution that ensures stability, performance and cost savings across the value chain, targeting small and medium-sized players in emerging markets. |
| Q2 2017 | Progress® excel – a new premium liquid protease that enables premium wash performance at all temperatures with increased flexibility. |
| Q2 2017 | Palmora® – the first Novozymes offering for the palm oil industry. Palmora® improves yield and process for palm oil producers. |
| Q2 2017 | Frontia® – a new technology for the grain-milling process based on Novozymes' capabilities within complex fiber and biomass structures. It delivers better yields and process improvements, adding to the competitiveness of our customers' operations. |
5.2 Company announcements for the fiscal year 2017
(Excluding Management’s trading in Novozymes’ stock, major shareholder announcements and stock buyback status)
| January 17, 2017 | Group financial statement for 2016 |
|---|---|
| January 24, 2017 | Initiation of stock buyback program |
| January 31, 2017 | Election of employee representatives to the Board of Directors |
| February 22, 2017 | Novozymes A/S Annual Shareholders’ Meeting 2017 |
| March 24, 2017 | Reduction of common stock |
| April 26, 2017 | Interim report for the first three months of 2017 |
| June 8, 2017 | Changes to the Board of Directors |
| June 15, 2017 | Changes to the Executive Leadership Team |
| August 11, 2017 | Interim report for the first half of 2017 |
5.3 Financial calendar
| October 25, 2017 | Interim report for the first nine months of 2017 |
|---|---|
| February 7, 2018 | Group financial statement for 2017 |
| March 13, 2018 | Novozymes A/S Annual Shareholders’ Meeting 2018 |
| April 25, 2018 | Interim report for the first three months of 2018 |
| August 10, 2018 | Interim report for the first half of 2018 |
| October 24 2018 | Interim report for the first nine months of 2018 |
| February 6, 2019 | Group financial statement for 2018 |
| March 6, 2019 | Annual Shareholders’ Meeting 2019 |
About Novozymes
Novozymes is the world leader in biological solutions. Together with customers, partners and the global community, we improve industrial performance while preserving the planet's resources and helping build better lives. As the world's largest provider of enzyme and microbial technologies, our bioinnovation enables higher agricultural yields, low-temperature washing, energy-efficient production, renewable fuel and many other benefits that we rely on today and in the future. We call it Rethink Tomorrow. www.novozymes.com
Novozymes A/S
Krogshoejvej 36
2880 Bagsvaerd
Denmark
Phone: +45 4446 0000
Novozymes A/S CVR number: 10 00 71 27, 201600502-01-10-52990076WMZKD2R10438
Rethink Tomorrow
novozymes