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.
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.
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.
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.
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.
The following companies have analysts covering Novozymes’ stock:
• ABG Sundal Collier
• Alm. Brand Markets
• 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
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: