Group financial statement for 2010

Strong full-year 2010 performance and exciting outlook for 2011

Sales and earnings grew strongly in 2010. Overall demand was high in the enzyme business, and costs were kept under control. For 2011, sales are expected to grow by 7–10% in DKK, local currency (LCY) and organically. We expect EBIT to grow by 8–11%, and we expect an EBIT margin of 21–22%, including an investment of DKK 150 million in additional initiatives in R&D and business-building activities. Net profit is expected to grow by 8–11%, with investments of around DKK 1,400 million and free cash flow before acquisitions of DKK 900–1,000 million. The outlook for 2011 excludes any potential impact from the EMD/Merck Crop BioScience acquisition.
In 2010: 
    • Sales grew by 15% in DKK, 10% in LCY, and 11% organically compared to 2009
    • The gross margin was 55.7%, compared to 55.6% in 2009
    • EBIT came to DKK 2,117 million, an increase of 25% compared to 2009
    • The EBIT margin was 21.8%, against 20.0% in 2009
    • Net profit came to DKK 1,614 million, an increase of 35% compared to 2009
    • Net investments excl. acquisitions totaled DKK 1,326 million, against DKK 978 million in 2009
    • Free cash flow before acquisitions was DKK 998 million, against DKK 839 million in 2009
    • ROIC was 22.2%, against 20.3% in 2009, incl. goodwill
It has been a very good year for Novozymes, and I can’t be anything but very pleased that already in 2010 we were able to live up to the long-term financial targets set at the beginning of 2009. We performed very well in terms of sales, earnings, cash flow, and sustainability," says Steen Riisgaard, President & CEO. "I'm also delighted that, in late December, we signed an agreement with the intention to acquire EMD/Merck Crop BioScience in the exciting and promising field of agricultural biologicals. We expect continued positive sales growth in 2011, and although we will be stepping up our activity levels, we still envisage a very healthy profit margin in 2011 above our long-term target.”