Expectations for 2007

Novozymes has the following expectations for its financial, social and environmental performance in 2007:

Financial expectations

• Growth in sales of 8-10% in local currencies, or 7-9% in DKK terms at current exchange rates
• Growth in operating profit of 5-7%. Exchange rate movements are expected to have a negative impact on growth in operating profit in 2007. All other things being equal, the sensitivity of operating profit to fluctuations in exchange rates in 2007 is expected to be DKK 35-45 million for the USD and DKK 5-10 million for the JPY, based on a 5% change in the exchange rate
• Operating profit margin of around 19%
• Net financial costs of DKK around 110 million
• Growth in net profit of 5-7% 
• Return on invested capital after tax of 19-20%
• Free cash flow before acquisitions of DKK 800-900 million
• Investments in property, plant and equipment before acquisitions in the region of DKK 600-700 million

Since around 98% of Novozymes’ sales take place outside Denmark, fluctuations in the exchange rates for the most important sales currencies will have a significant impact on the financial results for 2007. The company’s financial expectations are based on the spot rate on January 24, 2007 for its most important currencies, including the USD and JPY.

Social and environmental expectations
Novozymes’ environmental and social goals include both quantitative targets and qualitative targets for the development of the business in terms of social responsibility.

Quantitative targets for 2007

• Limit the increase in water consumption to a maximum of 1% less than realised sales growth in local currencies
• Limit the increase in energy consumption to a maximum of 1% less than realised sales growth in local currencies
• Achieve a percentage of waste recycled of more than 40% 
• Limit emissions of ozone-depleting HCFCs to below 2,300 kg
• Avoid significant spills/releases 
• Keep employee turnover below 8%
• Keep employee absence below 3%
• Avoid fatal occupational accidents 
• Avoid life-threatening or serious occupational accidents 
• Keep the frequency of occupational accidents below 4.5 per million working hours

Qualitative targets for 2007
Novozymes has a goal of increasing its contribution to sustainable development and working together with both customers and suppliers in this respect. There will be a particular focus on reducing emissions of greenhouse gases.

• Develop a method of indicating the potential of enzyme products to reduce emissions of greenhouse gases
• Reduce greenhouse gas emissions by more than 35,000 tons through growth in selected industries
• Develop a step-by-step approach to how and when collaboration with suppliers on sustainability issues is to be further developed