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Stanford Engineering,European Entrepreneurship& InnovationClaus Crone FuglsangManaging Director January 30th 2012Novozymes Inc.
A growing globalpopulation puts pressureon our natural resources.With bioinnovation in theform of, for example,industrial enzymes andmicroorganisms, industriescan rethink their processesand products, and producemore with less. 2
Novozymes –The World Leader in Bioinnovation• Business consists of two segments: Enzyme Business and BioBusiness Founded 1941• 2011 sales: USD ~ 2 billion Listed 2000• 2011 EBIT margin: 22.3% Ticker NZYM B Exchange Copenhagen• More than 700 products used in 130 countries in over 40 different industries Market Cap* ~ 10 Billion USD• ~ 7,000 granted and pending patents• + 5,800 employees• Two share classes; A and B shares • A share capital and 11% of B shares (25.5% of O/S; 70.1% of votes) held by Enzyme Business BioBusiness Novo A/S, the management company of the Novo Nordisk Foundation Household Food & Feed & Micro- Bioenergy Biopharma Care Beverages other Tech. organisms *A+B shares January, 2012 3
Uniquely Diversified Group Creates Synergies andNew Opportunities• Unique biotech-focused business with a strong legacy of delivering growth, earnings, and cash flow• ~ 14% of annual sales invested in R&D• Global provider of enzymes to all market segments creates global market leader position• Leveraging competencies across segments accelerates pace of innovation, reduces competition and creates high barriers to entry 31% 29% 17% 13% 7% 3% Household Food & Bioenergy Feed & other Micro- Biopharma Care Beverages Technical organisms enzymes • Laundry & • Baking • Corn ethanol • Animal feed • BioAgriculture • Drug delivery & Dishwasher • Brewing • Cellulosic • Textile • Wastewater formulation detergents • Starch to biofuels • Leather • Institutional • Medical devices syrups • Pulp & Paper & household • Wine & juice cleaning Enzyme Business BioBusiness 4
Diversification in Revenue Streams Underpinsthe Company’s Strong Financial Position• Enzymes account for 90% of turnover• Sales FY 2011 of DKK 10,510 billion (USD ~ 2 billion)• Strong profitability, ~ 22% in EBIT margin FY 2011• ROIC of ~ 21% for FY 2011 2011 Sales by geography 2011 Sales by industry Biopharma Microorga 3% nisms Feed & 7% other Latin Tech. America enzymes 10% Europe, 13% Household Middle Asia Care East and Pacific enzymes Africa 19% 31% 36% Bioenergy enzymes 19% Food & North Beverages America enzymes 35% 29% 5
Undisputed Market LeaderExpanding Enzyme ApplicationGlobal enzyme market value: 2000: 2011: Global enzyme market value DKK ~ 12bn DKK ~ 20bn 2011: DKK ~ 20bn Novozymes Rest of Novozymes Rest of 47% Others and 42% market market 53% captive 58% 26% Novozymes 47% DSM 6% Market potential* Genencor Current enzyme market (DuPont) DKK ~ 20bn 21% Untapped market Multi-billion (US$) Rules of competition dictated by innovation *Global markets for chemicals, food ingredients, feed additives, etc. 6
R&D on the geographical map- 9 global competence centers / 1000 employees 105 employees 30 employees 553 employees Strain dev. Pharma center All basic technologies Bioinformatics Albumin and All application Protein Engineering Albufusion technologies except Protein Chemistry Patent and regulatory textile Biomass Patent and regulatory 37 employees Metabolic Engineering Strain development Patent Protein Engineering New applications Regulatory 58 Employees Strain discovery Microbial physiology of mixed cultures Microbial ecology Microbe application expertise within technical microbes & BioAg 77 employees 66 employees Fungal screening Biofuel 27 employees New applications New Industries Protein Engineering Detergents Renewal of chemicals Protein Chemistry Textiles 7employees Application dev. W&J Biomass Patent and Regulatory Biofuel Surface fermentation Patent and Regulatory
From gene-bank to product in 12 monthsTechnologies ProcessIndividual shufflingFamily shuffling Creating Biological Nature’s diversity DiversityBioinformatics Molecular evolutionMega libraries (int. and ext.) 1° ScreeningProtein Engineering Screening technology 2° Screening •High throughput screening: Microbial and Molecular level •Targeted assay Creating ExpressionExpression (bacterial, fungal) System Fermentation Up-scaling Process PurificationLab fermentationPilot and tox material Production FormulationFull scale application test Biosolution based on Novozymes Technology
Novozymes, Inc Our key core technologiesNZCA: today cover: Established in 1992 Located in Davis, CA System Biology, Genomics & 45% males : 55 % females Bioinformatics We have around 110 FTE Fungal & Bacterial Expression Average seniority: 8 years Technology Historically we file 12-25 Metabolic engineeringpatents/year Microbial Physiology & Fermentation Robotics, Assay Technology & HTS Protein Chemistry Artificial evolution
10Significant achievementsCTec1 and CTec2 incl. discovery of GH61Numerous improved production strains and molecular tools• Savinase, Polarzyme, Everlase, Pullulanase, Novamyl• Improved promoters, genomic loci for expressionGenome sequencing and systems biology• Sequencing the genomes of more than 30 NZ organisms; host strains and BioAg strains incl. collaboration with JGI on T. reesei TV10• Developed technology to identify specific nucleotide changes conferring improved yields in Bacillus strainsMetabolic engineering• HA-strain development• CoRe projects established and running with 3 major partners: Cargill (3-HP), ADM, Braskem (Green PP)