Novozymes
a world leader in bioinnovation
Dr. Peder Holk Nielsen,
Executive Vice President & Head of Enzyme Business
December 2, 2008
Nasdaq OMX, London

Novozymes – (NZYM B) NASDAQ OMX Copenhagen
Sales USD ~1.5 billion (FY 2007)
Strong profitability (19.9% FY 2007) and solid
generation of cash flow
5,000+ employees
World leader in Industrial Enzymes
(47% global market share)
More than 700 products used in 130 countries
in >30 different industries
Global production and operations RECOGNIZED
LEADER IN
~13% of sales invested in R&D,
SUSTAINABILITY
~1,000 people employed in R&D
More than 5,000 granted patents and pending
patent applications
IN GLOBAL TOP 5 OF MOST
PATENT-ACTIVE COMPANIES
WITHIN BIOTECH
2

Enzymes – Novozymes’ main product area
What are enzymes?
Biological catalysts, speeding up
processes, found in nature in the form
of proteins driving chemical reactions.
All living organisms use enzymes to
chop up biological matter into energy
and to convert one substance to
another
Illustration of an enzyme
3

Everything you see in the picture below has been produced
with the help of Novozymes’ enzymes and microorganisms.
And it all starts with what we find in a handful of soil or a
compost heap.
4

Global coverage to support diversified
growth
Turnover by product area 9M08
Detergent
Technical
enzymes
enzymes
31%
29%
Food
Biopharma
enzymes
ceutical
Micro
Ingredients
23%
organisms Feed
2%
6%
enzymes
9%
Turnover by region 9M08
Europe,
Latin
Middle
Asia Pacific America
East and
18% 7%
Africa
Sales Offices 39%
Production
Research
North
America
36%
5

The Novozymes business case
A unique triple leverage on
its biotech expertise
…benefits the financials
Innovation-driven top-line growth
Gives growth in sales and growth
New products, applications, markets, in earnings
all expanding the use of industrial
17 years sales CAGR of 8%
biotechnology with a green,
sustainable potential 7 years EBIT CAGR of 10%
Productivity improvements Improves margins and reduces
Systematic production optimization CAPEX
provides higher profitability and asset
Year 2000: 16.7% Operating Margin
productivity; liberates capacity, delays
Year 2007: 19.9% Operating Margin
investments, ensures high cash flow
…despite USD/DKK development
Year 2000: ROIC 10.2%
Application of technology base Year 2007: ROIC 21.7%
outside core areas
Adds additional growth
Strategy to leverage expertise outside opportunities outside enzymes and
enzymes - acquisition-based micro- diversifies the business
organisms business and projects in
Microorganisms
biopolymers and biopharmaceuticals
Biopharmaceutical Ingredients
6

Novozymes’ capabilities in enzyme
production improves profitability
Basic raw materials input
~20% of total R&D cost is spent on
Carbonhydrates ~50% of raw material
productivity improvements
input (e.g., sucrose, maltose, glucose,
starch)
Productivity Improvements I
Raw
materials
- optimizing the industrial production
30%
Indirect Traditional production optimization
production
Energy/ • Process optimization
cost
utilities
50%
• Equipment optimization
20%
• Input optimization
FERMENTATION
READY TO SELL
FORMULATION
PRODUCTS
RAW MATERIALS
PURIFICATION
LIQUID PRODUCT
MICROORGANISMS
MICROORGANISMS
TO BE INACTIVATED
GRANULATED PRODUCT
Productivity Improvements II
Productivity Improvements III
- improving the production host
- improving the enzyme produced
Improving the microorganisms’ ability to
Improving the efficacy of the enzymes
produce more enzymes per m² fermentation
through Protein Engineering. Customers buy
7 tank through Genetic Engineering
efficacy, not volume

Exciting growth opportunities
The fundamentals are still the same since 60 years back
Supplying cost efficient biological catalysts to replace
chemicals/energy
food additives
feed ingredients
Possible through our ability to be cost competitive:
new technologies/new areas to apply our technology
close collaborations
focused organization
strong optimization abilities
Added to this – the world is increasingly
focusing on global environmental issues
8

The next 50 years!
x5 If business
Pollution and as usual
the
use of natural
resources
Enzymatic
If business
and
as usual
x 10
microbial
solutions
If business
as usual
Economic growth
x2
THERE IS A STRONG NEED FOR SUSTAINABLE SOLUTIONS
9

One of the added benefits using enzymes,
reduced carbon dioxide emissions
CO2 EMISSION PRODUCING 1 KG ENZYME:
PLUS 1-10 KG
-3,800 KG
-3,400 KG
CO2 REDUCTION USING 1 KG ENZYME
IN DIFFERENT INDUSTRIES :
-1,300 KG
MINUS CEREAL
UP TO
BIOCATALYSIS
-600 KG
-200 KG
-150 KG -150 KG
-100 KG
-40 KG
-30 KG
OIL & FATS
PAPER
FOOD
BIOETHANOL DETERGENT
TEXTILES
LEATHER
ANIMAL FEED
10

An exciting future
The pipeline:
100+ active projects
The past: Some selected key projects:
1990-2007 sales CAGR of 8%
Enzymes
8,000 20%
Sales
Converting biomass into sugars
18%
7,000
Operating margin
Replacing surfactants in detergents
16%
6,000
Healthier & more functional food
14%
5,000
DKK million
Enhanced diet utilization in animal feed
12%
4,000 10%
8%
Microorganisms
3,000
6%
Biological agriculture
2,000
4%
1,000
2%
Biopharmaceutical Ingredients
0 0%
Concept of going animal-free in the
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
production of biopharmaceutical drugs
Year
The potential:
Worldwide markets for
chemicals, food ingredients,
feed additivies, etc.
11

Enzymes for bioethanol is one key project
Starch-based bioethanol,~13% of total 2007 sales (15% 9M08)
Market leader in enzymes to starch-based bioethanol
Continuous work on improving efficiency of starch-based
ethanol production, i.e., reducing energy need, output yields ……
We have an extensive R&D focus on developing
cellulosic bioethanol:
Received DoE/NREL grant 2001-2004, which resulted in 30-fold
cost reduction (within grant specifications)
New DoE grant, USD 12.3m announced October 9 (2008−2011)
Work with 30+ partners within business and academia
100 people working on biomass (i.e., cellulosic ethanol)
We can supply commercial scale cellulosic ethanol
enzymes in 2010
12

The cellulosic ethanol opportunity is global
16bn
gallons
CEO Jeff Broin:
RFS-mandated 2G
40
1G & 2G bioethanol “The company remains
use in the US
35
on track to
30
commercialize the (2G)
0.1bn process in 2011 with
25
gallons
BN gallons
hopes that corn cobs
20
could be turned into 5
billion gallons of
15
ethanol a year. Turning
10
plant matter into fuel
requires enzymes to
5
extract sugars and the
0
deployment of yeast.”
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Corn Oth. Biofuels Cellulosic
Sugarcane bagasse
in Brazil
COFCO’s vision: 1 million
MT 2G bioethanol (335
MGY) from corn stovers by
2012
13

Biofuels are supported globally
CHINA
EU
• E10 IMPLEMENTED IN 9
USA • 2020 TARGET OF MIN. 10% PROVINCES
BIOFUEL COVERS
• RSF CALLS FOR 36bn
• 2020 TARGET OF 10m T,
TRANSPORTATION
GALLONS OF BIOFUEL,
3.5 FROM 1G, 6.5 FROM 2G
ENERGY USE (PER
HEREOF 15bn FROM 1G,
MEMBER STATE) TO BE
16bn FROM 2G
JAPAN
IMPLEMENTED AT EACH
• FARM BILL FOR 2009-12
STATE’S DISCRETION • AIMS AT ACHIEVING E3 BY
INCLUDES BIOETHANOL
IMPORT OF BRAZILIAN
TAX CREDITS OF 0.45 $/
ETHANOL (LIMITED
GALLON (1G), 1.01 $/
FEEDSTOCK AVAILABLE IN
GALLON (2G)
JAPAN)
SOUTH EAST ASIA
BRAZIL
• INDIA AIMS AT E10 BY
• (1G) ETHANOL-BASED 2010, CURRENTLY E5 IN 9
ECONOMY ON FFV PROVINCES
• E20-25 MANDATORY FOR • THAILAND AIMS AT E5
GASOLINE CARS NATIONWIDE BY 2011
• ALTERNATIVELY 100% • MALAYSIA TARGET TO
ETHANOL OR BECOME WORLD’S NO. 1
DIESEL/BIODIESEL BIODIESEL EXPORTER
• AUSTRALIA NO TARGET
14

Imagine a world based on
sustainable production …
15

Example of renewable-based chemical
Novozymes – Cargill collaboration on acrylic acid
Current petro-route for production of acrylic acid
Propylene acrylic acid
New fermentation enabled route to acrylic acid
Starch, Bio-acrylic
3-Hydroxy-
Glucose propionic acid
Biomass acid
Chemical
Novozymes’ technology-
Enzymatic
downstream
optimized pathways
process
process
16

9M08 sales growth: +16% in LCY, +9% in DKK.
Acquisitions ~3%-points
High petro-
US
chemicals
bioethanol
prices
High grain
prices
INCREASED INPUT PRICES
has driven an accelerated
15% 17%
penetration of enzymes across
High
13% 7% High
industries from increased
phosphate fertilizer
prices willingness to use enzymes
15% prices
10%
Enzymes provide:
• Cost savings
• Price predictability
19% • Added benefits
50%
11% 39%
The value of cost savings offered
1,916
1,780
1,700
1,660
has increased however, enzymes
1,397
provide savings at price levels
1,271
applicable 2+ years back
201
572
516
115
341
246
Detergent Technical Food Feed Microorg. BPI
9M'07 9M'08
LCY growth
DKK growth
17

Highlights 9M08
Key financials Outlook Realized Outlook
31.10.08 9M08 14.08.08
Sales, DKKm 6,121
Record-high sales growth
Sales growth, LCY 13-15% 16% 13-15%
Sales growth, DKK 9-11% 9% 8-10%
Good earnings
development
EBIT, DKKm 1,134
EBIT margin ~18% 18.5% ~18%
2008 outlook increased
in DKK from improved EBIT growth* 5-7% 6% 4-6%
exchange rates
Net profit, DKKm 821
Net profit growth* 6-8%
7-9% 9%
* 2007 basis excl. one-off
income
18

Novozymes and the current markets 8,000 20%
Sales
18%
7,000
Operating margin
16%
6,000
14%
5,000
Opportunities remain,
DKK million
12%
4,000 10%
despite global uncertainty 8%
3,000
6%
2,000
4%
1,000
2%
0 0%
Novozymes’ characteristics:
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Year
Historically, fairly robust towards Capital structure target:
downturn (i.e., supply to basic ~45% equity ratio
goods production) Balance per 30.09.2008
Equity ratio of 43%
Diversified NZ business Net debt-to-equity ratio of 38%
Cautious gearing approach => Debt position
Net interest-bearing debt of DKK 1,580m (down 11% vs. end 2007)
strong balance sheet, low net debt
DKK 200m due in 2008
Undrawn committed credit facilities DKK 3,000m
Cash position ~DKK 800m
Our growth focus will 10
continue 10
7 9
=> high investment level will
7
5
continue 5
735
627
515
476
392
333
335
2003 2004 2005 2006 2007 9M'07 9M'08
19
Capex Capex to Sales %

Summary
Strong position
Market leader
Strong optimization abilities
Strong R&D capabilities
Preferred partner
Strong financial performance
Allows us to invest in additional future
growth opportunities
Exciting momentum
Cost competitive biological solutions for
multiple application areas
Technological advancements
A need to produce more with less
20

Forward-looking statements
This presentation and its related comments contain forward-
looking statements, including financial expectations.
Forward-looking statements are by their very nature associated
with risks and uncertainties that may cause actual results to
differ materially from expectations.
The uncertainties may include unexpected developments in the
international currency exchange and securities markets, market-
driven price decreases for Novozymes’ products and the
introduction of competing products within Novozymes’ core areas.
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