XCSE:NSIS-B ESEF Annual Report
NOVOZYMES A/S (XCSE:NSIS-B)
ESEF Annual Report
2022-08-30
For: 2022-06-30
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Added on
September 23, 2026
Interim report for 1H 2022
Company Announcement no. 25 August 11, 2022 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
Ester Baiget, President & CEO:
“After a strong first half with 10% organic sales growth, and despite the volatile
market environment, we narrow our full-year organic sales growth outlook upwards to 6-8%. Our well-diversified
portfolio, end-market exposure, and operational excellence are key enablers to deliver value generating biotech-
solutions to customers. We continue to invest in the business in line with our strategic direction, and we expect
solid margins and returns despite the significant pressure from input and logistic costs”.
Sales and financial performance:
• Sales growth in DKK at 18% (10% organic, 7% currency, 1% M&A). Q2 DKK sales growth at 20% (10% organic,
9% currency, 1% M&A).
• Double-digit organic sales growth in four out of five business areas:
o Bioenergy 23% (Q2: 19%): Strong growth across regions led by North & South America with high demand
for innovation and value-enhancing solutions as well as for biodiesel production.
o Agriculture, Animal Health & Nutrition 14% (Q2: 17%): Strong performance with double-digit growth in
both Animal Health & Nutrition and Agriculture.
o Grain & Tech Processing 13% (Q2: 19%): Strong performance from innovation and yield solutions.
o Food, Beverages & Human Health 10% (Q2: 3%): Performance led by double-digit growth in Food and
Beverages.
o Household Care 0% (Q2: 4%): Performance in line with expectations, including a negative impact from
the war in Ukraine.
• Developed markets organic sales growth 10% (Q2: 9%); Emerging markets 10% (Q2:12%).
• EBIT margin at 26.0%, with Q2 roughly on par with Q1. Adjusted for provisions, the EBIT margin was closer to
27% both for the first half-year and for Q2. Lower year-on-year gross margin in line with expectations from
higher input and logistics costs. Slight positive impact from price increases in 1H expected to become more
visible in the second half of the year.
• ROIC incl. goodwill at 17.5%, lower year-on-year and mainly due to acquisitions and growth-investments.
• FCF before acquisitions at DKK 1.0 billion including higher CAPEX for the investment in the Advanced Protein
Solutions production line in Blair, Nebraska, as well as higher working capital.
• Solid balance sheet with a net-debt/EBITDA ratio of 1.1x
Key events:
• Six product launches in the first half of 2022, including four in the second quarter.
• New partnerships in Agriculture focusing on biocontrol and the exploration of post-harvest solutions.
• Participation in World Economic Forum annual meeting to discuss the potential of bio-solutions as an enabler
for a more sustainable world.
• Stock buyback program of DKK 500 million completed on June 27, 2022.
• As events after the interim period – an agreement was signed to invest intellectual property in 21
st
.BIO,
expected to be completed in the third quarter of 2022. The transaction is expected to generate a non-recurring
accounting gain under other operating income of DKK ~200 million and is a non-cash transaction. Additionally,
Novozymes’ minority ownership in Albumedix will be divested leading to a financial gain of DKK ~250m, and
the transaction is expected to close during the second half of the year.
2022 outlook:
• A strong first half and good momentum across the business leading to a narrowed organic sales growth
outlook from 4-8% to now 6-8%. Sales reported in Danish kroner expected to be around 8 percentage points
higher than the organic sales growth rate.
• EBIT margin outlook raised to 26-27% following the completion of the non-recurring accounting gain from
investing intellectual property in 21
st
.BIO expected in the third quarter (no cash impact).
• Outlook for ROIC incl. goodwill increased to 17-18% following the accounting gain, while free cash flow before
acquisitions is maintained.
1H 2022
1H
2021
Q2
2022
Q2
2021
2022
outlook
August 11
2022
outlook
April 26
Sales performance,
organic
%
10
6
10
9
6-8
4-8
EBIT margin
%
26.0
28.6
25.9
27.7
26-27
25-26
ROIC, incl goodwill
%
17.5
19.7
17-18
16-17
FCF, before acquisitions
DKKbn
1.0
1.8
0.6
1.1
1.7-2.1
1.7-2.1
1H 2022
10%
Organic sales
growth
26.0%
EBIT margin
1.0
FCF before
acq. DKKbn
17.5%
ROIC, incl.
goodwill
Full-year organic sales growth outlook narrowed upwards
to 6-8% after 10% growth in both 1H and in Q2
____________________________________________________________________________________________________________________________________________
Conference call
August 11, 2022
9.00 CEST
Please pre-register
for the call here
Webcast
Interim report for 1H 2022
Company Announcement no. 25 August 11 2022 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
2/26
Selected key data
1H 2022
1H 2021
Q2 2022
Q2 2021
Sales performance, organic
%
10
6
10
9
Household Care
%
0
-2
4
-6
Food, Beverages & Human Health
%
10
14
3
18
Bioenergy
%
23
16
19
54
Grain & Tech Processing
%
13
17
19
18
Agriculture, Animal Health & Nutrition
%
14
-9
17
-19
Sales
DKKm
8,657
7,356
4,286
3,580
Sales performance, DKK
%
18
3
20
7
Gross margin
%
55.5
58.4
55.5
58.7
EBITDA
DKKm
2,990
2,825
1,487
1,368
EBIT
DKKm
2,252
2,107
1,110
990
EBIT margin
%
26.0
28.6
25.9
27.7
Net profit
DKKm
1,656
1,679
817
794
Net profit performance
%
-1
15
3
23
Net investments excl. acquisitions
DKKm
1,233
411
844
217
Free cash flow before acquisitions
DKKm
969
1,846
583
1,142
NIBD/EBITDA
1.1
1.0
ROIC, incl. goodwill
17.5
19.7
EPS
5.92
6.02
2.92
2.85
EPS (diluted)
5.87
5.98
2.90
2.83
Avg. USD/DKK
680
617
699
617
Interim report for 1H 2022
Company Announcement no. 25 August 11 2022 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
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Sales by business area
Distribution of sales by business area, 1H 2022
Household Care
The first half organic sales performance for Household Care was flat while sales in reported DKK grew
4% compared to the same period of 2021. Emerging markets developed well during the period, driven
by solid performance in both Latin America and Asia Pacific. In developed markets, enzyme sales for
laundry & dishwash declined mainly due to the expected reduction in European market volumes, while
cleaning & professional performed well. The Freshness technology performed in line with expectations.
Second-quarter sales were up 4% organically and 9% in reported DKK year-on-year. The performance
was in line with expectations and included a negative impact from the war in Ukraine, which began to
show in the second quarter. Sales in emerging markets performed well, driven by a strong performance
in Latin America and Asia Pacific. Developed markets also grew in the second quarter despite the
aforementioned year-on year weakness in Europe, which eased compared to the first quarter.
Food, Beverages & Human Health
Food, Beverages & Human Health grew 10% organically in the first half of 2022 compared to the same
period last year. Sales in reported DKK grew 21% in the first half, supported by the acquisition of
Synergia Life Sciences. The performance was strong, driven by Food and Beverages, and included a
first-quarter positive timing effect of roughly 2 percentage points of the first-half organic sales growth
in the business area. Growth in Food was broad-based across sub-areas and supported by ingredient
substitution and raw material optimization. Beverages performed well, especially in the low-calorie
brewing segment. Both Food and Beverages benefitted from favorable market conditions and strong
consumer demand. Human Health performed well with solid underlying in-market demand, although
with a somewhat soft organic performance due to a strong comparator from last year.
In the second quarter of 2022, Food, Beverages & Human Health grew 3% organically year-on-year, on
top of a high 18% comparator from last year, and sales in reported DKK grew 14%. The performance
in the second quarter was in line with expectations and driven by growth in Food and Beverages, while
Human Health performed well on top of a strong comparator from last year.
Bioenergy
Sales in Bioenergy grew 23% organically and 35% in reported DKK in the first half of the year compared
to the same period last year. The strong performance was supported by recovering U.S. ethanol
production and capacity expansion of corn-based ethanol production in Latin America. According to
the US EIA, U.S. ethanol production increased by an estimated 6-7% in the first half of 2022 compared
to the first half of 2021. Novozymes’ performance in the period benefitted from a broad, innovative
solution toolbox allowing for higher yields, throughput and by-product value capture for producers
experiencing solid crush margins in the current environment. Sales of solutions for Biodiesel
28%
24%
19%
16%
13%
Household Care
Food, Beverages & Human Health
Bioenergy
Grain & Tech Processing
Agriculture, Animal Health & Nutrition
Organic performance / Performance in DKK
14% / 21%
0% / 4%
13% / 20%
10% / 21%
23% / 35%
Total sales 1H y/y
Organic: 10%
DKK: 18%
Household Care 1H y/y
Organic: 0%
DKK: 4%
Food, Beverages & Human
Health 1H y/y
Organic: 10%
DKK: 21%
Bioenergy 1H y/y
Organic: 23%
DKK: 35%
Interim report for 1H 2022
Company Announcement no. 25 August 11 2022 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
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production grew by double digits and contributed positively to the strong performance, although from
a relatively small base.
Second-quarter sales in Bioenergy grew 19% organically and 34% in reported DKK year-on-year. The
broad solution toolbox and innovations were the main drivers of the strong performance that was
supported by volume growth in the U.S. ethanol industry, an estimated 1-2% year-on-year according
to the US EIA, and sales outside the U.S. also contributed positively led by strong growth in Latin
America.
Grain & Tech Processing
Grain & Tech Processing sales grew 13% organically in the first half and 20% in reported DKK year-on-
year with strong performance in grain and solid performance in tech. The strong performance in grain
was driven by innovation in starch and grain milling as well as increased market penetration in
vegetable oil processing. The overall favorable end-market demand for grain-derived products also
supported performance. Sales in Tech increased, partly driven by stronger sales of diagnostic enzymes.
In the second quarter, Grain & Tech Processing sales grew 19% organically and 28% in reported DKK
compared to the same period last year. The strong performance was driven by grain for the same
reasons as those explaining the first half-year developments, whereas strong tech performance was
driven partly by a more normalized comparator from last year, as well as solid underlying demand
across sub-segments, particularly in diagnostic enzymes.
Agriculture, Animal Health & Nutrition
Sales in Agriculture, Animal Health & Nutrition grew 14% organically and 21% in reported DKK in the
first half compared to the same period last year. Growth was led by Animal Health & Nutrition and
Agriculture also grew double digits during the period. Innovation and favorable market conditions,
partly linked to higher soft commodity prices, boosted demand for yield-enhancing solutions across
subareas.
Second-quarter sales grew 17% organically and 26% in reported DKK compared to the same quarter
last year. The strong performance was driven by both Agriculture and Animal Health & Nutrition,
continuously supported by innovation and the additional customer focus on yield-enhancing solutions.
Sales by geography
Distribution of sales by geography, 1H 2022
Novozymes’ organic sales grew 10% year-on-year in the first half of 2022. Sales growth was strong at
10% in both emerging and developed markets. Growth in developed markets was mainly driven by
Bioenergy, while Household Care declined slightly. In emerging markets, all five business areas
delivered growth, with Food, Beverages & Human Health as the main driver.
In the second quarter, emerging markets grew 12% and developed markets grew 9% organically. As
for the first half, growth in emerging markets was broad-based, with all five business areas
36%
32%
21%
11%
Europe, the Middle East & Africa
North America
Asia Pacific
Latin America
Grain & Tech Processing
1H y/y
Organic: 13%
DKK: 20%
Agriculture, Animal Health &
Nutrition 1H y/y
Organic: 14%
DKK: 21%
19% / 33%
Organic performance / Performance in DKK
7% / 8%
12% / 24%
9% / 19%
Interim report for 1H 2022
Company Announcement no. 25 August 11 2022 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
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contributing. In developed markets, growth was mainly driven by a strong performance in Bioenergy
and supported by very solid performance in Grain & Tech Processing as well as in Agriculture, Animal
Health & Nutrition.
Europe, the Middle East & Africa
Sales grew 7% organically in the first half of the year compared to the same period last year. Growth
was broad-based, with four out of the five business areas growing double digits. Agriculture, Animal
Health & Nutrition was the main growth driver for the region, while Household Care declined due to
the expected reduction in European market volumes.
Second-quarter sales grew 3% organically compared to the second quarter last year. As for the first
half, growth was driven by strong performance in Agriculture, Animal Health & Nutrition while
Household Care declined slightly.
North America
In North America, organic sales grew by 12% in the first half compared to the same period last year.
Growth was primarily driven by the strong performance in Bioenergy but was also supported by strong
growth in Grain & Tech Processing.
In the second quarter, organic sales in North America grew 14%. As for the first half, growth was led
by strong performance in Bioenergy and Grain & Tech Processing.
Asia Pacific
Sales grew 9% organically in the first half of 2022, driven by solid performance across all main business
areas. Growth was particularly strong in Food, Beverages & Human Health, with double-digit growth
across all three subareas.
Sales in the second quarter grew 13% organically with Food, Beverages & Human Health, Grain & Tech
Processing and Household Care growing at or close to double digits.
Latin America
Organic sales grew 19% year-on-year in Latin America in the first half of the year. Growth was broad-
based with four out of five business areas growing double digits. Strong performance in Food,
Beverages & Human Health and the continued capacity expansion of corn-based ethanol production
were the main drivers.
In the second quarter, organic sales grew 23% with strong performance across Food, Beverages &
Human Health, Bioenergy and Household Care.
Europe, the Middle East &
Africa 1H y/y
Organic: 7%
DKK: 8%
North America 1H y/y
Organic: 12%
DKK: 24%
Asia Pacific 1H y/y
Organic: 9%
DKK: 19%
Latin America 1H y/y
Organic: 19%
DKK: 33%
Interim report for 1H 2022
Company Announcement no. 25 August 11 2022 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
6/26
Income statement
Total costs excluding net other operating income, net financials, share of losses in associates and taxes
amounted to DKK 6,436 million in the first half and DKK 3,195 million in the second quarter of 2022.
This was DKK 1,047 million (19%) and DKK 586 million (22%) higher, respectively, than in the
corresponding periods of 2021. The year-on-year increases in the first half and in the second quarter
were mainly due to the higher cost of goods sold, which increased as a function of higher sales as well
as higher input and logistics costs.
The gross margin was 55.5% both in the first half and in the second quarter of 2022, decreasing by 2.9
and 3.2 percentage points, compared to the respective periods of 2021, where the gross margin was
strong both in the first half and the second quarter. The lower year-on-year gross margin was mainly a
result of higher input and logistics costs that were partly offset by productivity improvements and
operating leverage. Currencies provided a slight tailwind in both the first half and the second quarter,
while the effect of changes in sales prices was slightly positive in the first half, driven by developments
in the second quarter. In addition, the second quarter gross margin was negatively impacted by around
1 percentage point due to a provision for scrapping of inventory in Agriculture.
Operating costs totaled DKK 2,585 million in the first half and DKK 1,288 million in the second quarter
of 2022. This marked an increase of DKK 255 million (11%) and DKK 158 million (14%), respectively,
compared to the same periods of 2021. The first half increase in operating costs was mainly due to
higher sales and distribution costs as well as higher administrative costs and partly offset by somewhat
lower research and development costs. M&A-related effects from the recent acquisition of Synergia
Life Sciences impacted all three operating cost lines slightly. In addition, the increase in sales and
distribution costs was due to higher logistics costs, continued investments in commercial activities and
the first quarter provision related to doubtful receivables from customers in Russia. As in the first half,
the second quarter increase in operating costs was mainly driven by higher sales and distribution costs
as well as higher administrative costs. Year-on-year currency developments added to the higher
operating costs in both the first half and the second quarter.
• Sales and distribution costs increased by 31% to make up 13% of sales during the first half of
the year and increased by 28% to make up 13% of sales in the second quarter.
• Research and development costs decreased by 7% to make up 11% of sales in the first half of
the year and were flat and made up 12% of sales in the second quarter.
• Administrative costs increased by 15% to make up 5% of sales in the first half of the year and
increased by 20% to make up 6% of sales in the second quarter.
Other operating income amounted to DKK 31 million in the first half of 2022. This was a decrease of
DKK 109 million compared to the same period of 2021. The decrease is explained by higher other
operating income in the first quarter of last year, which included contingent income from the divested
pharma-related royalty and proceeds from the sale of a non-core administrative building. Other
operating income amounted to DKK 19 million in the second quarter and was on par with the
corresponding period of 2021.
Depreciation and amortization amounted to DKK 738 million in the first half, corresponding to an
increase of 3% compared to the first half of 2021. In the second quarter, depreciation and amortization
amounted to DKK 377 million, which was on par with the second quarter of 2021.
EBIT was DKK 2,252 million in the first half and DKK 1,110 million in the second quarter of 2022,
corresponding to an EBIT margin of 26.0% and 25.9%, respectively. This was an increase of DKK 145
million and a decrease of 2.6 percentage points for the first half of 2022 and an increase of DKK 120
million and a decrease of 1.8 percentage points for the second quarter compared to the EBIT and the
EBIT margin for the corresponding periods of 2021. The first-half EBIT margin decrease was mainly
the result of a reduced gross margin and lower other operating income. The aforementioned provision
for uncertain receivables in Q1, included in operating costs, and the provision related to the scrapping
of inventory in Agriculture impacting the gross margin in Q2, had a negative effect of close to 1
Total costs
DKK 6,436 million
Gross margin
55.5%
Operating costs
DKK 2,585 million
Depreciation and amortization
DKK 738 million
EBIT
DKK 2,252 million
EBIT margin
26.0%
Interim report for 1H 2022
Company Announcement no. 25 August 11 2022 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
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percentage point on the reported EBIT margin in the first half of 2022. Adjusting for the provisions in
both Q1 and Q2, the EBIT margin was ~27% for the first half of 2022. This was around 1 percentage
point lower than the underlying EBIT margin in the first half of last year. M&A-related effects had a
roughly neutral effect, while currencies provided a tailwind.
The second quarter EBIT margin decrease was mainly due to a lower gross margin, including the
provision related to the scrapping of inventory in Agriculture, and somewhat mitigated by an improved
operating-cost-to-sales ratio and a tailwind from currencies and M&A. Adjusting for the second quarter
provision, the EBIT margin was ~27% and around 1 percentage point lower than the underlying EBIT
margin in the second quarter of last year.
Net financial costs and the share of losses in associates amounted to DKK 129 million in the first half
and DKK 63 million in the second quarter of 2022. The DKK 121 million and DKK 66 million higher
costs compared to the respective corresponding periods of 2021 were mainly due to losses on currency
hedges relating to the US dollar.
Profit before tax amounted to DKK 2,123 million in the first half and DKK 1,047 million in the second
quarter of 2022. This was DKK 24 million (1%) and DKK 54 million (5%) higher, respectively, than in
the corresponding periods of 2021. In both the first half and the second quarter, the increase was
driven by higher EBIT, despite the increase in net financial costs.
The effective tax rate was 22.0% both in the first half year and in the second quarter of 2022. This was
2 percentage points higher than the respective corresponding periods of last year. The 22% is equal
to the corporate tax rate in Denmark and the difference compared to last year is explained by the
transfer of intellectual property from Switzerland to Denmark during 2017-2021, which supported the
effective tax rate during that period.
Net profit totaled DKK 1,656 million in the first half and DKK 817 million in the second quarter of 2022.
This was DKK 23 million (-1%) lower and DKK 23 million (3%) higher than in the respective
corresponding periods of 2021. The lower first-half net profit is explained by the aforementioned
increase in effective tax that reduced the slightly higher profit before tax.
Cash flows and balance sheet
Cash flow from operating activities amounted to DKK 2,202 million in the first half and DKK 1,427
million in the second quarter of 2022. This was a decrease of DKK 55 million and an increase of DKK
68 million respectively compared to the corresponding periods of 2021. The first-half developments
were mainly due to a change in working capital driven by higher inventories resulting from higher input
costs and currencies, and a slightly lower net profit, somewhat offset by reversals of non-cash items.
The second-quarter increase was driven by reversals of non-cash items and higher net profit despite
the effect from higher inventories due to higher input costs and currencies.
Net investments excluding acquisitions totaled DKK 1,233 million in the first half and DKK 844 million
in the second quarter of 2022. This was DKK 822 million and DKK 627 million higher respectively
compared to the corresponding periods of 2021. In both the first half and the second quarter, the
increase was mainly due to higher CAPEX investments in the new production line for Advanced Protein
Solutions in Blair, Nebraska, U.S.
Free cash flow before acquisitions was DKK 969 million in the first half and DKK 583 million in the
second quarter of 2022. The declines of DKK 877 million and DKK 559 million respectively compared
to the corresponding periods of 2021 were mainly due to higher net investments and a reduced cash
flow from operating activities due to the increased working capital.
Total equity was DKK 12,493 million at June 30, 2022, corresponding to an equity ratio of 47.2%. This
was an increase of DKK 1,579 million and a decrease of 3.3 percentage points respectively compared
to the total equity of DKK 10,914 million and the 50.5% equity ratio reported at June 30, 2021.
Net financial costs and share
of losses in associates
DKK 129 million
Effective tax rate
22.0%
Net profit
DKK 1,656 million
Operating cash flow
DKK 2,202 million
Net investments excluding
acquisitions
DKK 1,233 million
Free cash flow before
acquisitions
DKK 969 million
Equity ratio
47.2%
Interim report for 1H 2022
Company Announcement no. 25 August 11 2022 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
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Net interest-bearing debt (NIBD) and the NIBD-to-EBITDA ratio were DKK 6,298 million and 1.1x
respectively at June 30, 2022 and in line with Novozymes’ capital structure target. This was an increase
of DKK 1,028 million in NIBD and an increase of 0.1x in the NIBD-to-EBITDA ratio compared to June
30, 2021, as the positive cash flow from operating activities was more than offset by cash outflows
from dividend payments, stock buybacks, capital expenditures and the acquisition of Synergia Life
Sciences.
Return on invested capital (ROIC) including goodwill was 17.5% in the first half of 2022. This was 2.2
percentage points lower than in the corresponding period of 2021 mainly due to the increase in
invested capital, including acquisitions and growth investments.
The holding of treasury stock at June 30, 2022 was 4,692,439 B shares, which was equivalent to 1.7%
of the common stock.
Sales Outlook
Novozymes has a well-diversified product portfolio and broad industry exposure. Based on the solid
first-half year performance of 10% organic sales growth, Novozymes narrows the full-year outlook
range from 4-8% to now 6-8%. This includes the previously mentioned negative full-year impact of
around 1 percentage point from the Ukraine war, mainly impacting Household Care. Novozymes is
experiencing good momentum across a large part of its portfolio with the focus on innovations and
market penetration combined with supportive market conditions. Sales in DKK are expected to be
around 8% higher than the organic sales growth outlook. Business areas and subsegments where yield
and throughput are more relevant are benefitting relatively more from the current market conditions.
While sales prices were roughly neutral in the first quarter, Novozymes is experiencing good traction
on the ongoing price initiatives and dialogues in collaboration with customers across business areas.
Pricing in the second quarter was slightly positive year-on-year, and the price initiatives are expected
to have a stronger impact as the year progresses, leading to a slightly positive impact for the full year
as well. The sales growth range includes uncertainties associated with current market conditions,
including global supply chain constraints.
Household Care (organic 0% in 1H 2022) organic sales in 2022 are indicated to be ‘flat to 2%’, including
a negative impact of the war in Ukraine. Growth will be driven by enzymatic penetration in emerging
markets, primarily within the laundry category, and includes expectations of roughly flat developments
in European detergent volumes. The Freshness technology is expected to contribute positively to
performance in both emerging and developed markets. Outside of laundry, professional & medical
cleaning is expected to perform well.
Food, Beverages & Human Health (organic 10% in 1H 2022) organic sales growth is indicated to be
broad-based with the full-year indication maintained in the ‘low teens’, and with Food and Human
Health as the main drivers. Growth in Food is expected to be driven primarily by our health-focused
solutions, including strong performance in baking, dairy and plant protein, benefitting from raw
material optimization and ingredient substitutions. Beverages is expected to grow, driven by market
penetration and supported by commodity price tailwinds. Human Health is expected to grow
organically in the solid double-digits, driven by cross-selling in regions and channels.
Bioenergy (organic 23% in 1H 2022) organic sales growth is expected to be supported by the continued
recovery of U.S. ethanol production, market penetration enabled by innovation, capacity expansion of
corn-based ethanol production in Latin America, and market penetration with enzymatic solutions for
biodiesel production. The full-year organic sales growth indication is raised from ‘high-single-digit”
organic sales growth to now ‘mid-teens’ as a result of the good start to the year with more favorable
market conditions, but it also reflects a more difficult comparator in the second half of last year.
NIBD/EBITDA
1.1x
ROIC incl. goodwill
17.5%
Treasury stock
1.7%
Interim report for 1H 2022
Company Announcement no. 25 August 11 2022 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
9/26
Grain & Tech Processing (organic 13% in 1H 2022) organic sales growth is expected to be broad-based
with growth across most subareas of both Grain and Tech. Performance in Grain is expected to be led
by market penetration in vegetable oil processing and innovation in starch supported by strong end-
market demand. Growth in Tech is expected to be broad-based, including volume recovery in the global
textile industry. As a result of the strong first half-year performance with more favorable market
conditions, the full-year organic sales growth indication for Grain & Tech Processing is raised from
‘low-single to mid-single-digit growth’ to now ‘high-single digit growth’.
Agriculture, Animal Health & Nutrition (organic 14% in 1H 2022) organic sales growth will be led by
solid growth in Animal Health & Nutrition complemented by double-digit growth in Agriculture.
Innovation and a more diversified commercial model will be key enablers for increased market
penetration for both bio-yield and bio-control solutions in Agriculture. Growth in Animal Health &
Nutrition will primarily be driven by innovation as well as end-market-driven volume growth. The full-
year organic sales growth indication for Agriculture, Animal Health & Nutrition is maintained at a rate
in the ‘high-single-digits to low-teens’.
Financial outlook
For 2022, Novozymes expects a solid EBIT margin of 26% to 27% (2021: 26.8%). This is an increase
compared to the previous outlook of 25% to 26% reflecting the expected non-cash accounting gain
related to the 21st.BIO agreement. Compared to 2021, the EBIT margin will benefit from sales growth
and productivity improvements, targeted price increases, as well as a net positive currency effect.
Significantly higher input and logistics costs and continued investments in the business are expected
to have a negative year-on-year impact. Due to the aforementioned increase in input costs, the gross
margin is expected to decline by ~2 percentage points compared to 2021. In addition, the agreement
to invest intellectual property in 21
st
.BIO is expected to be completed in the third quarter of 2022 and
the transaction is expected to generate a non-recurring accounting gain under other operating income
of DKK ~200 million and is a non-cash transaction.
Return on invested capital (ROIC), including goodwill, is now expected at 17% to 18% (2021: 19.3%).
This is an increase compared to the previous outlook of 16% to 17% due to the expected non-cash
accounting gain related to the 21st.BIO agreement. A higher NOPAT, including the accounting gain
relating to 21
st
.BIO, and higher invested capital, mainly from acquisitions, are the main drivers of the
expected year-on-year development in ROIC, including goodwill.
Free cash flow (FCF) before acquisitions is expected at from DKK 1.7 to 2.1 billion (2021: DKK 2.9
billion), mainly impacted by higher net investments to support long-term growth ambitions.
For modeling purposes, the following is provided:
The effective tax rate is expected at around 20% for 2022 (2021: 20%) following the 21
st
.BIO agreement
and divestment of minority ownership in Albumedix, which are both tax-exempt.
Net financial costs are expected to be around DKK 200 million (2021: DKK 83 million) as a result of
increased hedging costs, primarily related to USD forward contracts, and benefitting from the
divestment of the minority-ownership in Albumedix expected in the second-half of the year.
Net investments in 2022 are expected at from DKK 2.6 to 2.9 billion (2021: DKK 1.1 billion). This reflects
maintenance, optimization and expansion investments, including in new Food and health-related
customer co-creation centers, as well as roughly DKK 1 billion related to the investment in a new state-
of-the-art production line for Advanced Protein Solutions at Blair, Nebraska.
EBIT margin
26% to 27%
ROIC, incl. goodwill
17% to 18%
FCF before acquisitions
DKK 1.7 to 2.1 billion
Effective tax rate
~20%
Net financial costs
DKK 200 million
Net investments
DKK 2.6 to 2.9 billion
Interim report for 1H 2022
Company Announcement no. 25 August 11 2022 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
10/26
The stock buyback program of up to DKK 500 million was initiated effective February 21, 2022 and
completed on June 27, 2022.
2022
outlook
August 11
2022
outlook
April 26
2022
outlook
February 1
Sales performance, organic
%
6-8
4-8
3-7
EBIT margin
%
26-27
25-26
25-26
ROIC, incl goodwill
%
17-18
16-17
16-17
FCF, before acquisitions
DKKbn
1.7-2.1
1.7-2.1
1.7-2.1
For modeling purposes
Effective tax rate
%
~20
~22
~22
Net financial costs
DKKmn
200
350
250
Net investments
DKKbn
2.6-2.9
2.6-2.9
2.5-2.8
Stock buyback program
DKK 500 million completed
Interim report for 1H 2022
Company Announcement no. 25 August 11 2022 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
11/26
Sustainability outlook
With our refreshed strategy, ‘Unlocking growth – powered by biotech’, we introduced a new set of long-
term commitments to a healthy planet. The commitments will help accelerate towards a climate-
neutral society, transform food systems, and enable healthier lives. We also recognize the urgent need
for action and are raising our commitment to climate change to include all emissions from our supply
chain as well, and we will now strive for a 50% reduction in absolute emissions from operations &
supply chain across Scopes 1, 2 and 3 by 2030. This is in line with the climate guidance from the Science
Based Targets Initiative defined in 2021. We are also committed to continue to ensure that our
employees develop in a thriving, diverse and inclusive community. For the post-2022 period, we will
communicate new non-financial targets and milestones to further guide our journey towards our long-
term commitments. You can find more information about our long-term commitments in our 2021
Annual Report.
In 2022, we will continue to work towards our long-term commitments by investing in the development
of solutions that contribute to a healthy planet, improve our climate, water and waste footprints as
well as promoting an inclusive and diverse workplace where employees can stay safe, thrive and grow.
We will develop our roadmap further towards net zero emissions by 2050 and implement employee
programs focused on inclusion. Furthermore, we will continue to work together with partners to drive
the global sustainability agenda, such as the U.N. Global Compact, World Wide Fund for Nature, World
Economic Forum, The B-team and the Science-Based Targets Initiative.
Milestones
2022 Targets
Status
Zymers &
Society
Nurture diversity
1
86
On track
Occupational injury
2
≤1.5
On track
Zymer spirit index score
3
81
On track
Enable learning
3
80
On track
Pledge our time to local outreach activities
1% of time
4
On track
Operations
Reduce absolute CO
2
emissions from
operations
5
40%
On track
Develop context-based water management
programs
100% of sites
6
On track
Manage biomass in circular systems
100%
On track
Develop circular management plans for key
packaging materials
100%
On track
Develop programs to reach zero waste by
2030
100% of sites
6
On track
World
Save CO
2
emissions by enabling low-carbon
fuels in the transport sector
60 million
tonnes of CO
2
On track
Reach people by providing laundry solutions
that replace chemicals
>4 billion
people
On track
Gain food by improving efficiency from farm
to table
500,000 tonnes
of food
More to do
1
Index calculated based on gender and national representation at various professional levels.
2
Defined as three-year rolling average of lost time injuries per million working hours.
3
Measured by score to relevant questions in annual survey.
4
Qualitative reporting only.
5
From a 2018 baseline.
6
The targets do not include sites with activities not considered to have a significant environmental impact, e.g. sales offices, R&D labs, etc.
Interim report for 1H 2022
Company Announcement no. 25 August 11 2022 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
12/26
Currency exposure
Sales by currency, 1H 2022
Other things equal, a 5% movement in USD/DKK is expected to have an annual positive/negative
impact on EBIT of around DKK 130-160 million, and a 5% movement in EUR/DKK is expected to have
an annual positive/negative impact on EBIT of DKK ~200 million.
Hedging of net currency exposure and currency exchange rates
The currency exposure was hedged at 100% at an average of USD/DKK 6.30 in 2022.
The 2022 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, 1H 2022
744
680
134
105
Average exchange rate, 1H 2021
744
617
115
95
Average exchange rate, 1H 2022 compared to
1H 2021
0%
10%
17%
11%
Estimated average exchange rate 2022*
744
704
138
106
Estimated average exchange rate 2022
compared to 2021
0%
12%
18%
9%
*On August 10, 2022.
Events occurring after the first-half interim period
On August 10, 2022, Novozymes signed an agreement to invest intellectual property in 21
st
.BIO as a
related party transaction with Novo Holding. The agreement is expected to be completed in the third
quarter of 2022 and the transaction is expected to generate a non-recurring accounting gain of DKK
~200 million recognized under other operating income. The accounting gain is a non-cash transaction
with no cash flow impact, but with a positive impact of around 1% on both the EBIT margin and ROIC
incl. goodwill. Additionally, the effective tax rate for the year is expected to be positively affected by
around 1 percentage point as the transaction is tax-exempt.
Following the announced sale of Albumedix, Novozymes will as part of the agreement divest its 8%
ownership in Albumedix, a company built with Novozymes’ technology platform. The acquisition is
subject to customary closing conditions and is expected to close during the second half of the year.
The sale will lead to a tax-exempt financial gain and upon closing a cash flow of around DKK 250
million. The transaction will not impact Free Cash Flow before acquisitions, divestments and purchase
of financial assets but will improve financial items by approximately DKK 250 million and the effective
tax rate for 2022 by around 1 percentage point.
~35%
~36%
~9%
~6%
~14%
EUR
USD
CNY
DKK
Others
Interim report for 1H 2022
Company Announcement no. 25 August 11 2022 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
13/26
Accounting policies
The interim report for the first half of 2022 has been prepared in accordance with IAS 34 and
additional Danish regulations for the presentation of quarterly interim reports by listed companies.
The accounting policies applied in the interim report for the first half of 2022 are consistent with those
applied in the annual report for 2021, 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, 2022. These IFRSs have not had any impact on the Group’s interim report.
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 business 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 (U.S.)
+45 3077 8682
Carl Ahlgren
+45 3077 2783
Media Relations
Lina Danstrup
+45 3077 0552
lind@novozymes.com
Interim report for 1H 2022
Company Announcement no. 25 August 11 2022 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
14/26
Statement of the Board of Directors and the Executive
Management
Bagsværd, August 10, 2022
EXECUTIVE MANAGEMENT
Ester Baiget
President & CEO
Lars Green
CFO
BOARD OF DIRECTORS
Jørgen Buhl Rasmussen
Chair
Cornelis (Cees) de Jong
Vice Chair
Anne Breum
Heine Dalsgaard
Sharon James
Anders Hentze Knudsen
Kasim Kutay
Preben Nielsen
Morten Alexander Sommer
Kim Stratton
Jens Øbro
Interim report for 1H 2022
Company Announcement no. 25 August 11 2022 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
15/26
Appendices
Appendix 1 Main items and key figures 16
1.1 Key figures 16
1.2 Income statement 17
1.3 Statement of comprehensive income 18
Appendix 2 Distribution of sales 19
2.1 Business areas 19
2.2 Geography 20
Appendix 3 Statement of cash flows 21
3.1 Statement of cash flows 21
Appendix 4 Balance sheet and Statement of equity 22
4.1 Balance sheet, Assets 22
4.2 Balance sheet, Liabilities 23
4.3 Statement of equity 24
Appendix 5 Miscellaneous 25
5.1 Publicly announced product launches in 2022 25
5.2 Company announcements made in the 2022 financial year 26
5.3 Subsequent events 26
Interim report for 1H 2022
Company Announcement no. 25 August 11 2022 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
16/26
Appendix 1 Main items and key figures
Key figures
DKK million 1H 2022 1H 2021 % change Q2 2022 Q2 2021 % change
Revenue 8.657 7.356 18% 4.286 3.580 20%
Gross profit 4.806 4.297 12% 2.379 2.101 13%
Gross margin 55,5% 58,4% 55,5% 58,7%
EBITDA 2.990 2.825 6% 1.487 1.368 9%
EBITDA margin 34,5% 38,4% 34,7% 38,2%
Operating profit / EBIT 2.252 2.107 7% 1.110 990 12%
EBIT margin 26,0% 28,6% 25,9% 27,7%
Share of result in associates (3) (2) (2) (1)
Net financials (126) (6) (61) 4
Profit before tax 2.123 2.099 1% 1.047 993 5%
Tax (467) (420) 11% (230) (199) 16%
Net profit 1.656 1.679 (1)% 817 794 3%
Earnings per DKK 2 share 5,92 6,02 (2)% 2,92 2,85 2%
Earnings per DKK 2 share (diluted) 5,87 5,98 (2)% 2,90 2,83 2%
Net investments excl. acq. 1.233 411 200% 844 217 289%
Free cash flow before net acq. and
purchase of financial assets
969 1.846 (48)% 583 1.142 (49)%
Return on invested capital (ROIC)
incl. goodwill
17,5% 19,7%
Net interest-bearing debt 6.298 5.270
Equity ratio 47,2% 50,5%
Return on equity 27,0% 28,0%
Debt-to-equity 50,4% 48,3%
NIBD / EBITDA 1,1 1,0
Number of employees 6.657 6.290
Novozymes' stock
Jun. 30,
2022
Jun. 30,
2021
Common stock (million)
281,0 282,0
Net worth per share (DKK)
43,06 38,66
Denomination of share (DKK)
2,00 2,00
Nominal value of common stock
(DKK million)
562,0 564,0
Treasury stock (million)
4,7 4,5
Interim report for 1H 2022
Company Announcement no. 25 August 11 2022 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
17/26
Income statement
DKK million 1H 2022 1H 2021 Q2 2022 Q2 2021
Revenue 8.657 7.356 4.286 3.580
Cost of goods sold (3.851 ) (3.059 ) (1.907) (1.479)
Gross profit 4.806 4.297 2.379 2.101
Sales and distribution costs (1.137 ) (871 ) (552) (432)
Research and development costs (991 ) (1.062 ) (498) (499)
Administrative costs (457 ) (397 ) (238) (199)
Other operating income, net 31 140 19 19
Operating profit / EBIT 2.252 2.107 1.110 990
Share of result in associates (3 ) (2 ) (2) (1)
Net financials (126 ) (6 ) (61) 4
Profit before tax 2.123 2.099 1.047 993
Tax (467 ) (420 ) (230) (199)
Net profit 1.656 1.679 817 794
Attributable to
Shareholders in Novozymes A/S 1.641 1.679 809 794
Non-controlling interests 15 - 8 -
Specification of net financials
Foreign exchange gain/(loss), net (128 ) 61 (82) 34
Interest income/(costs) (21 ) (22 ) (11) (12)
Other financial items 23 (45 ) 32 (18)
Net financials (126 ) (6 ) (61) 4
Earnings per DKK 2 share 5,92 6,02 2,92 2,85
Average no. of A/B shares outstanding (million) 277,1 278,8 277,0 278,3
Earnings per DKK 2 share (diluted) 5,87 5,98 2,90 2,83
Average no. of A/B shares, diluted (million) 279,4 280,8 279,4 280,7
Interim report for 1H 2022
Company Announcement no. 25 August 11 2022 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
18/26
Statement of comprehensive income
DKK million 1H 2022 1H 2021 Q2 2022 Q2 2021
Net profit
Currency translation of subsidiaries and non-controlling interests
Currency translation adjustments
Fair value adjustments
(157 ) (79 ) (134) 23
Tax on fair value adjustments
Cash flow hedges reclassified to financial costs 109 (70 ) 61 (28)
Tax on reclassified fair value adjustments
(24 ) 15 (13) 6
Cash flow hedges
(37 ) (116 ) (56) (3)
Other comprehensive income
Comprehensive income
Attributable to
Shareholders in Novozymes A/S 2.307 1.857 1.185 747
Non-controlling interests 16 1 9 -
Interim report for 1H 2022
Company Announcement no. 25 August 11 2022 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
19/26
Appendix 2 Distribution of sales
Business areas
2022
2021 % change % currency % M&A % organic
DKK million 1H 1H impact impact growth
Consumer Biosolutions
Household Care 2,458 2,366 4 4 0 0
Food, Beverages & Human Health 2,103 1,743 21 6 5 10
Agriculture & Industrial Biosolutions
Bioenergy
1,671 1,239 35 12 0 23
Grain & Tech Processing
1,347 1,118 20 7 0 13
Agriculture, Animal Health & Nutrition
1,078 890 21 7 0 14
Sales 8,657 7,356 18 7 1 10
2022
2021 % change % currency % M&A % organic
DKK million Q2 Q2 impact impact growth
Consumer Biosolutions
Household Care
1,228 1,125 9 5 0 4
Food, Beverages & Human Health
1,004 878 14 7 4 3
Agriculture & Industrial Biosolutions
Bioenergy
874 651 34 15 0 19
Grain & Tech Processing
679 529 28 9 0 19
Agriculture, Animal Health & Nutrition
501 397 26 9 0 17
Sales 4,286 3,580 20 9 1 10
% change
DKK million Q2 Q1 Q4 Q3 Q2 Q1 Q2/Q2
Consumer Biosolutions
Household Care
1,228 1,230 1,150 1,247 1,125 1,241 9
Food, Beverages & Human Health
1,004 1,099 851 870 878 865 14
Agriculture & Industrial Biosolutions
Bioenergy
874 797 788 675 651 588 34
Grain & Tech Processing
679 668 579 539 529 589 28
Agriculture, Animal Health & Nutrition
501 577 466 430 397 493 26
Sales 4,286 4,371 3,834 3,761 3,580 3,776 20
2021
2022
Interim report for 1H 2022
Company Announcement no. 25 August 11 2022 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
20/26
Geography
2022
2021
% change % currency % M&A % organic
DKK million 1H 1H impact impact growth
Europe, Middle East & Africa 3,102 2,866 8 1 0 7
North America 2,781 2,242 24 10 2 12
Asia Pacific 1,807 1,519 19 8 2 9
Latin America 967 729 33 13 1 19
Sales 8,657 7,356 18 7 1 10
Developed markets 5,482 4,706 16 5 1 10
Emerging markets 3,175 2,650 20 9 1 10
Sales 8,657 7,356 18 7 1 10
2022
2021 % change % currency % M&A % organic
DKK million Q2 Q2 impact impact growth
Europe, Middle East & Africa 1,469 1,409 4 1 0 3
North America 1,395 1,076 30 14 2 14
Asia Pacific 913 733 25 10 2 13
Latin America 509 362 41 18 0 23
Sales 4,286 3,580 20 9 1 10
Developed markets 2,688 2,289 17 7 1 9
Emerging markets 1,598 1,291 24 11 1 12
Sales 4,286 3,580 20 9 1 10
% change
DKK million Q2 Q1 Q4 Q3 Q2 Q1 Q2/Q2
Europe, Middle E ast & Africa 1,469 1,633 1,372 1,443 1,409 1,457 4
North America 1,395 1,386 1,310 1,131 1,076 1,166 30
Asia Pacific 913 894 762 728 733 786 25
Latin America 509 458 390 459 362 367 41
Sales 4,286 4,371 3,834 3,761 3,580 3,776 20
Developed markets 2,688 2,794 2,486 2,311 2,289 2,417 17
Emerging markets 1,598 1,577 1,348 1,450 1,291 1,359 24
Sales 4,286 4,371 3,834 3,761 3,580 3,776 20
2021
2022
Interim report for 1H 2022
Company Announcement no. 25 August 11 2022 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
21/26
Appendix 3 Statement of cash flows
Statement of cash flows
DKK million 1H 2022 1H 2021 Q2 2022 Q2 2021
Net profit
Reversals of non-cash items
Tax paid
(345 ) (220 ) (60) (25)
Interest received
Interest paid
(25 ) (25 ) (10) (12)
Cash flow before change in working capital
Change in working capital
(Increase)/decrease in receivables and contract assets
(121 ) (157 ) 155 185
(Increase)/decrease in inventories
(416 ) (297 ) (357) (256)
Increase/(decrease) in payables, deferred income and
contract liabilities
Currency translation adjustments
Cash flow from operating activities
Investments
Purchase of intangible assets
(41 ) (73 ) (31) (28)
Sale of property, plant and equipment
Purchase of property, plant and equipment
(1.193 ) (340 ) (813) (190)
(1.233 ) (411 ) (844) (217)
Business acquisitions, divestments and purchase of financial
assets
(77 ) (761 ) (22) (8)
Free cash flow
Financing
Borrowings
Repayment of borrowings
(846 ) (533 ) (726) (467)
Overdraft facilities, net
Repayment of lease liabilities
(58 ) (52 ) (30) (29)
Shareholders:
Purchase of treasury stock
(500 ) (1.132 ) (360) (848)
Sale of treasury stock
Dividend paid
(1.525 ) (1.466 ) (1) (1)
Withheld dividend tax
Cash flow from financing activities
(859 ) (1.290 ) (667) (1.216)
Net cash flow
Unrealized gain/(loss) on currencies and financial assets,
included in cash and cash equivalents
Change in cash and cash equivalents, net
Cash and cash equivalents - Beginning of period
Cash and cash equivalents at June 30
Undrawn committed credit facilities at June 30, 2022 were DKK 3,448 million.
Cash flow from investing activities before acquisitions,
divestments and purchase of financial assets
Free cash flow before acquisitions, divestments and
purchase of financial assets
Interim report for 1H 2022
Company Announcement no. 25 August 11 2022 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
22/26
Appendix 4 Balance sheet and Statement of equity
Balance sheet, Assets
DKK million
Jun. 30,
2022
Jun. 30,
2021
Dec. 31,
2021
Completed IT development projects 223 185 200
Acquired patents, licenses and know-how
Goodwill
IT development projects in progress
Intangible assets 4.967 3.573 5.024
Land and buildings
Plant and machinery
Other equipment 1.045 969 1.039
Assets under construction and prepayments
Property, plant and equipment 11.254 9.681 10.185
Deferred tax assets 1.565 1.198 1.637
Other financial assets (non-interest-bearing) 86 29 30
Investment in associate 26 31 29
Other receivables
Non-current assets 17.935 14.542 16.944
Raw materials and consumables 518 373 433
Goods in progress 1.187 861 979
Finished goods
Inventories 3.466 2.701 2.992
Trade receivables 3.395 2.798 2.948
Contract assets 67 15 40
Tax receivables 263 292 286
Other receivables
Receivables 4.017 3.366 3.793
Other financial assets (non-interest-bearing) 64 28 75
Cash and cash equivalents 1.013 969 963
Assets held for sale
Current assets 8.560 7.075 7.823
Assets 26.495 21.617 24.767
Interim report for 1H 2022
Company Announcement no. 25 August 11 2022 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
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Balance sheet, Liabilities
DKK million
Jun. 30,
2022
Jun. 30,
2021
Dec. 31,
2021
Common stock 562 564 564
Currency translation adjustments 695 (433 ) (8 )
Cash flow hedges (69 ) 11 (32 )
Retained earnings
Equity attributable to shareholders in Novozymes A/S
Non-controlling interests
Total equity 12.493 10.914 12.206
Share purchase liability 775 - 717
Deferred tax liabilities 1.381 857 1.337
Provisions 152 112 153
Contingent consideration 218 567 543
Deferred income 107 - 98
Other financial liabilities (interest-bearing) 3.864 3.832 3.676
Other financial liabilities (non-interest-bearing) - 12 4
Non-current lease liabilities
Non-current liabilities 6.840 5.773 6.888
Other financial liabilities (interest-bearing) 2.976 1.858 2.030
Other financial liabilities (non-interest-bearing) 197 44 109
Lease liabilities 128 156 122
Provisions 26 23 21
Contingent consideration 377 - -
Trade payables 1.597 1.144 1.490
Contract liabilities 114 145 129
Deferred income 25 32 34
Tax payables 510 346 486
Other payables
Current liabilities 7.162 4.930 5.673
Liabilities 14.002 10.703 12.561
Liabilities and equity 26.495 21.617 24.767
Interim report for 1H 2022
Company Announcement no. 25 August 11 2022 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
24/26
Statement of equity
DKK million
Common
stock
Currency
translation
adjustments
Cash flow
hedges
Retained
earnings
Total
Non-
controlling
interests
Total
Equity at January 1, 2022
Net profit for the period
Other comprehensive income for the period
Total comprehensive income for the period
Purchase of treasury stock
(500 ) (500 ) (500 )
Sale of treasury stock
Write-down of common stock
(2 ) 2 - -
Dividend
(1.524 ) (1.524 ) (1 ) (1.525 )
Stock-based payment
Non-controlling interests and share purchase liability
(58 ) (58 ) - (58 )
Tax related to equity items
(93 ) (93 ) (93 )
Changes in equity
(2 ) 703 (37 ) (392 ) 272 15 287
Equity at June 30, 2022
Equity at January 1, 2021
Net profit for the period
Other comprehensive income for the period
Total comprehensive income for the period
Purchase of treasury stock
(1.132 ) (1.132 ) (1.132 )
Sale of treasury stock
Write-down of common stock
(6 ) 6 - -
Dividend
(1.465 ) (1.465 ) (1 ) (1.466 )
Stock-based payment
Tax related to equity items
Changes in equity
(6 ) 294 (116 ) (502 ) (330 ) - (330 )
Equity at June 30, 2021
Attributable to shareholders in Novozymes A/S
Interim report for 1H 2022
Company Announcement no. 25 August 11 2022 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
25/26
Appendix 5 Miscellaneous
Publicly announced product launches in 2022
We have launched the following products in 2022.
Product
Description
Sustainability benefit*
HiPhorius™
HiPhorius
TM
is a fourth generation phytase
resulting from the Feed Alliance with
DSM.
Phosphorus is essential for animal
metabolism but is often inaccessible to
swine and poultry in the most common
animal feedstocks. Farmers often add
inorganic phosphates, but this increases
feed costs and leads to environmental
pollution through phosphorous emissions.
A phytase is an enzyme that releases
natural-bound phosphorus from raw
materials in feed. This reduces the need
for inorganic phosphorus
supplementation. The primary benefit is
the saving of rare phosphorus resources
and lower phosphorous emissions to
water bodies and reduced algae growth.
Valena Pulse G
Valena Pulse G enables better inclusion of
pulse ingredients in bread and reduces
reliance on emulsifiers. Inclusion of pulses
in bread increases the protein and fiber
content of breads while reducing
carbohydrates and retaining texture and
appearance.
Inclusion of pulses in bread addresses
the plant-based food segment and may
potentially result in a reduction of
greenhouse gas emissions. Pulses
improve the soil’s ability to absorb
natural CO
2
emissions. Because pulses
can fix nitrogen, they also need less
fertilizer. Fixing nitrogen makes the soil
more fertile, which helps other plants
flourish. Furthermore, when pulses are
sourced locally, the need for
transportation of crops is also reduced.
Innova® Turbo
Innova® Turbo is a fast and high -yielding
advanced yeast solution that enables
ethanol producers to make more faster
and without any conversion trade-offs.
Innova® Turbo improves energy
efficiency due to shorter fermentation
times, reduced need for DGS drying and
higher ethanol yield. This in turn results
in a lower carbon intensity of the
ethanol. Also, reduced emissions of
acetaldehyde from the fermentation off-
gas may reduce potential photochemical
smog.
Innova® Apex
Innova® Apex is a robust yeast solution
that allows ethanol producers to
maneuver through process turns
confidently with sustained top
performance.
Due to the higher ethanol yield obtained
with Innova® Apex, the carbon intensity
of the ethanol is reduced.
Progress Crystal
Progress Crystal is a protease for the soap
bar segment with excellent enzyme
activity and stability, resulting in strong
washing performance even when the soap
bar is stored over long periods of time.
Progress Crystal enables the soap bar
producers to eliminate the stabilizers
that they would need with traditional
protease formulations to keep the
protease stable in the soap bar.
Foliar LCO
Torque® IF and Ratchet® are two new
LCO promoters for BioAg that improve
yields by stimulating the natural growth
process above and below the soil for corn
and other key broad-acres crops.
The ability to achieve higher yields with
unchanged agricultural inputs results in
several environmental benefits including
reduced GHG emissions per kg of crop
produced and reduced pressure on
natural habitats.
* The sustainability benefits are based on quantitative and/or qualitative evaluations. Novozymes does not have quantifiable data or
documentation to verify the benefits of all product launches.
Interim report for 1H 2022
Company Announcement no. 25 August 11 2022 Novozymes A/S CVR number: 10 00 71 27 Krogshoejvej 36 2880 Bagsvaerd Phone +45 4446 0000
26/26
Company announcements made in the 2022 financial year
(Excluding Management's trading in the Novozymes stock, major shareholder announcements and stock buyback status)
February 1, 2022
Group financial statement for 2021
February 21, 2022
Initiation of stock buyback
March 16, 2022
Resolutions from Novozymes A/S’ Annual Shareholders' Meeting 2022
April 20, 2022
Reduction of share capital
April 26, 2022
Interim report for Q1 2022
June 29, 2022
Novozymes’ financial calendar 2023
Subsequent events
After the balance sheet date Novozymes has signed an agreement to invest intellectual property in
21
st
.BIO. For further information reference is made to the management review.
Novozymes has a minority shareholding in Albumedix. Following the announced sale of Albumedix to
Sartorius on August 9, 2022, Novozymes will as part of the agreement sell the minority shares in
Albumedix. For further information reference is made to the management review.