Innovation, deployment and ambitious

policy targets:

- Towards a bio-based economy

Innovation, deployment and ambitious

policy targets:

- Towards a bio-based economy

17. March 2011, EP

Kåre Riis Nielsen, Director of European Affairs, Novozymes A/S

GLOBAL PRESENCE

Global leader in Industrial Enzymes & Microorganisms

More than 700 products used in 130 countries within >30 different industries 5,200 employees worldwide

Novozymes in brief

2009 Novozymes sales by industry

2009 market share of enzymes (industrial

use)

R&D Market leader in all main industries

47% global market share within industrial enzymes ~14% of sales invested in R&D >6,000 patents in place

PERFORMANCE 2009 global sales USD 1.6B (FY 2009) Operating profit margin 20% (FY2009) ROIC 20.3% (FY2009)

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Challenges:Limited resourcesGrowing population

Pressure on:FoodNatural resourcesClimate

Global challenges

THE ERA OF FOSSIL FUELS IS RUNNING OUT

…and the bio-based economy is taking-off

Available today: next-generation biofuels

Underutilized agriculture

EU’s agricultural residues presents a unique opportunity for the agricultural sector to:

• Innovate using available industrial biotech solutions;

• Invest in tomorrow’s rural infrastructure of biorefineries;

• Reduce GHG emissions, job creation and enhance energy security;

• Start the transformation towards a competitive bio-based economy

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7 NOVOZYMES PRESENTATION

Biorefinery concept

• Bio-innovation: from renewables to consumer and industrial markets

Focus on the bio-based economy

OECD:Biotech excl. biofuels can contribute more than 2,7 of GDP by 2030

World Economic Forum:Revenue potential USD230 billions by 2020

WWF:Industrial biotechnology can save 1-2.5 bn tonnes CO2 by 2030

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WWF: Four industrial biotech cornerstones provide up to 2.5 billion tons of CO2 reductions

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Industrial biotechnology results in more efficient use of natural resources and reduced energy consumption

Potential CO2 savings by year 2030:

204 million tons

Cornerstone 1: Improved efficiency

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• Rapid deployment of next-generation biofuels has potential to deliver about 1 billion tons of emission reductions by 2030

Biofuels help to develop the technologies and infra- structures that establish a stronger market for bio-based materials Potential CO2 savings by year 2030:

1,024 million tons

Cornerstone 2: Switching to biofuels

Next-generation ethanol a golden opportunity for Europe

• Resource: 25% of the available agricultural residues

• Energy security: Replace 62% of gasoline consumption by 2020

• Jobs: Up to 1 million jobs, mainly non- outsourcable jobs in rural areas

• Growth: revenues of €31bn instead of oil import of €49bn

• Climate: reduce road transport GHG emission by 16%

Next-generation ethanol & biochemicals: What’s in it for Europe

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Substitution of petrochemicals with bio-based processes and ingrediences can produce significant GHG emission reductions

Biorefineries can produce a broad range of end roducts and create production systems that dramatically reduce waste

Potential CO2 savings by year 2030:

668 million tons

Cornerstone 3: Replacing petrochemicals with bio-based materials

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Future perspectives and deployment – The way forward will be in phases

Renewable chemicals are in their infancy

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• Renewable chemicals have to compete on price and performance

• No subsidies

• New infrastructure

Leve

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tim

izat

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Time

Petroleum-based chemistry

Renewable chemicals industry

Cha

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Selected projects: ”Untraditional partnerships”

DuPont/BP: Butanol

Danisco/Goodyear: Isoprene

Amyris Biotechnologies: Isoprene, alternative fuel

LS-9: alternative fuels

Roquette/DSM: Bio-Succinic

Metabolics Explorer: L-methionine, 1,2-propanediol, 1,3-propanediol, N-butanol, glycolic acid

Genomatica: 1,4-butanediol

Slide 17

Next-generation biofuels will drive the infrastructure towards the bio-based economy

A call for action

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Political leadership:Do not waste a goodcrisis to transform Europe into a bio-based economy

• Full-scale deployment of next-generation biofuels

• Further R&D for industrial biotechnology and biorefineries

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