Novozymes' stock

Novozymes' stock performed well in 2010, with a 44% increase in price. The stock peaked at DKK 782 in early December.

Novozymes’ overall financial ambition is to provide our shareholders with competitive returns. Shareholder value is created through share price appreciation, dividend payments, and stock buybacks.

Novozymes’ stock is listed on NASDAQ OMX Copenhagen and included in the OMX Copenhagen 20 index (OMXC20). The stock is listed under ticker code NZYM B and ISIN DK0010272129. Novozymes is registered with the Danish Commerce and Companies Agency under 10 00 71 27.

Share performance

Novozymes had common stock of DKK 650 million, or 65 million shares, at the end of 2010, unchanged from the level at the end of 2009.

Novozymes’ stock (DKK) 2010 2009 Share price, year-end 777 540 Total market value, year-end (billion)*  42.15 29.3 Earnings per share, diluted 25.25 18.93 Dividend per share 8.00** 5.75 * B shares only ** Proposed

 
The average daily trading volume of Novozymes’ stock in 2010 was 110,509 shares, or DKK 73 million, making it the ninth most actively traded stock on NASDAQ OMX Copenhagen. At year-end, the total market value of Novozymes’ B shares was DKK 42.15 billion.

Novozymes’ share price increased by 44% during the year. In comparison, the OMXC20 gained 36%, the MSCI Pan Europe Index 6%, the Dow Jones World Sustainability Index 4%, and the MSCI Materials Index 19%.

Over the past five years, Novozymes’ stock has generated an average annual return to shareholders, including dividends, of more than 25%. This can be compared to a five-year average return of 3% for the OMXC20, -3% for the MSCI Pan Europe Index, 0% for the Dow Jones World Sustainability Index, and 11% for the MSCI Materials Index.

Dividends

Novozymes’ dividend policy is a payout ratio of around 30% of net profit. The Board of Directors proposes that the Annual Shareholders’ Meeting approve a dividend of DKK 8.00 per share for the 2010 financial year. This will result in an expected total dividend payment of approximately DKK 504 million.

Distributions 2010 2009 2008 2007 2006 Dividends (DKK million) 504* 358 326 309 278 Stock buybacks (DKK million) 0 0 0 500 1,107 Total (DKK million) 504* 358 326 809 1,385 Net profit (DKK million) 1,614 1,194 1,062 1,042 911 Payout ratio 31.2%* 30.0% 30.7% 29.7% 30.5% Number of shares outstanding, year-end (million) 62.9 62.2 62.0 61.8 61.8 Dividend per share (DKK) 8.00* 5.75 5.25 5.0 4.5 * Proposed    * Proposed

In general, Novozymes’ decision to buy back stock is based on an assessment of the need for capital structure optimization, and whether excess capital can be invested in profitable growth opportunities. Stock buy-backs may also be carried out to cover employee stock option obligations.

Dividend dates, 2011   Resolution adopted at the Annual Shareholders' Meeting   March 2 Last day of trading with right to dividend for 2010 March 2 First day of trading without right to dividend for 2010 March 3 Disbursement of dividend March 8

 

Equity analysts

The following companies have analysts covering Novozymes’ stock:

• ABG Sundal Collier
• Alm. Brand Markets
• Carnegie
• Cheuvreux
• Credit Suisse
• Danske Markets Equities
• Deutsche Bank
• Goldman Sachs
• Handelsbanken Capital Markets
• Jefferies & Company Inc.
• J.P. Morgan Securities
• Jyske Bank
• Nordea Markets
• Nykredit Markets 
• SEB Enskilda Equities
• Standard & Poor’s Investment Services Equity Research
• Sydbank
• UBS
• Vontobel

Sustainability ratings

Providing information on sustainability performance to analysts, rating agencies, and asset managers is an important element of Novozymes’ interaction with shareholders. Novozymes continuously seeks to improve our sustainability reporting and processes, and values this interaction highly. In 2010, Novozymes was:

• Reconfirmed as a member of the Dow Jones Sustainability World Index and the Dow Jones Sustainability STOXX Index, named sector leader for the ninth time, and awarded a Gold Class rating
• Awarded PRIME status by Oekom Research for being among the sustainability leaders in the Pharmaceuticals & Biotechnology industry
• Ranked among The Global 100 Most Sustainable Corporations in the World for the fifth consecutive year
• Ranked in the top 1% in the ET Global 1000 Carbon Index, and received the Environmental Tracking Carbon Verification Leaders Award 2010
• Reconfirmed as a member of the OMX GES Nordic Sustainability Index
• Awarded a score of 77 out of 100 in the Carbon Disclosure Project
• Reconfirmed as a member company of the FTSE4Good Index