In this chapter

Novozymes' stock

Print

Novozymes’ stock performed well in 2011, gaining 14%. A 1-to-5 split was carried out to make the stock more liquid and accessible to private investors.

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 DK0060336014. Novozymes is registered with the Danish Business Authority under 10 00 71 27.

Stock split

To make our B shares more liquid and more accessible to private investors, Novozymes carried out a 1-to-5 stock split with effect from November 28, 2011. The nominal value of Novozymes’ B shares listed on NASDAQ OMX Copenhagen changed from DKK 10 to DKK 2. The split also applied to the nontraded A shares. The common stock remains at DKK 650 million, but is now divided into 325 million instead of 65 million shares.

Share performance

Novozymes’ stock (DKK)*

2011

2010

Share price, year-end 177.3  155.4 
Total market value, year-end (billion)** 57.6 50.5
Earnings per share, diluted 5.71 5.05
Dividend per share 1.9*** 1.6
 
* All numbers restated to reflect the 1-to-5 stock split as of November 28, 2011.
** All A and B shares multiplied by the price of the B share.
*** Proposed.

The average daily trading volume of Novozymes’ stock in 2011 was 522,607 shares, or DKK 85 million, making it again the ninth most actively traded company on NASDAQ OMX Copenhagen. At year-end, the total market value of Novozymes’ B shares was DKK 48.1 billion and the implied value of the nontraded A shares was DKK 9.5 billion.

Novozymes’ share price increased by 14% during the year. In comparison, the OMXC20 fell 15%, the MSCI Pan Europe Index fell 10%, and the Dow Jones Sustainability World Index fell 10%.

Over the past 5 years, Novozymes’ stock has generated an average annual return to shareholders of 16% (18% including dividends). This can be compared to a 5-year average return of (2)% for the OMXC20, (4)% for the MSCI Pan Europe Index, and (5)% for the Dow Jones Sustainability World Index.

Adjustments to the capital structure

Despite several acquisitions, stock buyback programs, and an increased dividend payout ratio, Novozymes’ capital base has strengthened markedly since our stock exchange listing in November 2000. Given the expectation of a stable cash flow improvement over the next few years, it was decided in 2011 to initiate a new stock buyback program and to gradually increase the dividend payout ratio. The new initiatives will still allow Novozymes to maintain our financial flexibility when it comes to investment opportunities and long-term focus.

It is planned that the dividend payout ratio will be increased gradually over the next 2–3 years to around 35% of net profit, compared to the historic level of around 30%.

A new stock buyback program will be initiated in 2012, and the common stock will be reduced accordingly by canceling shares bought back within the program. The cancellation of shares will take place annually subject to approval at the Annual Shareholders’ Meeting. In accordance with this, Novozymes has decided to buy back shares worth up to DKK 2 billion over a 2-year period starting in 2012. The buyback program is contingent upon no major acquisitions being made.

To ensure there is no negative impact on the liquidity of Novozymes’ stock, our principal shareholder, Novo A/S, has agreed to keep its relative holding of B shares at the current level (25.5% of common stock) following Novozymes’ cancellation of shares as a result of the stock buyback program.

Dividends

The Board of Directors proposes that the Annual Shareholders’ Meeting approve a dividend of DKK 1.9 per share for the 2011 financial year. This will result in an expected total dividend payment of approximately DKK 599 million.

Distributions 2011 2010 2009 2008 2007
Dividends (DKK million) 599* 504 358 326 309
Stock buybacks (DKK million) 400 0 0 0 500
Total (DKK million) 999* 504 358 326 809
Net profit (DKK million) 1,828 1,614 1,194 1,062 1,042
Payout ratio 32.8%* 31.2% 30.0% 30.7% 29.7%
Number of shares outstanding,
year-end (million)**
315 315  311  310 309 
Dividend per share (DKK)** 1.9* 1.6 1.15 1.05 1.0
 
* Proposed.
** Restated to reflect the 1-to-5 stock split as of November 28, 2011.

Dividend dates 2012

 
Resolution adopted at the Annual Shareholders' Meeting February 29
Last day of trading with right to dividend for 2011 February 29
First day of trading without right to dividend for 2011 March 1
Disbursement of dividend March 6

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
• DnB NOR Markets
• Goldman Sachs
• Handelsbanken Capital Markets
• Jefferies & Company
• J.P. Morgan Securities
• Jyske Bank
• Morgan Stanley
• Nordea Markets
• Nykredit Markets 
• SEB Enskilda Equities
• Standard & Poor’s
• Sydbank
• UBS

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 2011, 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 10th time, and awarded a Gold Class rating for 2010 performance in SAM's Sustainability Yearbook 2011
  • Ranked 10th in the Carbon Disclosure Project’s Nordic Carbon Disclosure Leadership Index 2011 with a score of 85 out of 100
  • Re-awarded PRIME status by Oekom Research for being among the top 3 sustainability leaders in the Pharmaceuticals & Biotechnology industry
  • Reconfirmed as one of The Global 100 Most Sustainable Corporations in the World
  • Reconfirmed as a member of the ET Global 300 Carbon Index
  • Reconfirmed as a member company of the FTSE4Good Index
  • Reconfirmed as a member of the Ethibel EXCELLENCE Investment Register

Shareholders

Novozymes’ common stock consists of two types: A shares and B shares, both with a nominal value of DKK 2 per share. All A stock is held by Novo A/S, and an A share carries 10 times as many votes as a B share.

A stock B stock Total
Common stock (DKK) 107,487,200 542,512,800 650,000,000
Number of shares 53,743,600 271,256,400 325,000,000

Number of votes
1,074,872,000 542,512,800 1,617,384,800
Voting rights (%) 66.5 33.5 100

At the end of 2011, Novo A/S held 25.5% of the total common stock and, through its holding of the A stock and a proportion of the B stock (29,131,400 shares), controlled 70.1% of the votes. Novo A/S is wholly owned by the Novo Nordisk Foundation, and Novozymes is therefore included in the consolidated financial statements of the Novo Nordisk Foundation. Novo A/S is domiciled in Hellerup, Denmark.

At year-end, Novozymes had roughly 49,000 shareholders of whom 99% were private shareholders in Denmark. Twenty institutional investors, including Novo A/S, owned approximately 60% of the B shares. Around 65% of the B shares are held outside Denmark.

Novozymes held 3.7% of the B stock, equivalent to 3.1% of the total common stock.

No shareholders, except Novo A/S, held more than 5% of Novozymes’ common stock on December 31, 2011.

Financial calendar

Group financial statement for 2011 January 19, 2012
Annual Shareholders' Meeting February 29, 2012
Group financial statement for the first quarter of 2012 April 25, 2012
Group financial statement for the first half of 2012 August 16, 2012
Group financial statement for the first nine months of 2012    October 25, 2012
Group financial statement for 2012 January 21, 2013

Contact Investor Relations

Visit our Investor site at www.novozymes.com for investor relations guidelines, presentations, tools and downloads, Group financial statements, and other information for both private and institutional shareholders.

If you have questions for Investor Relations, please contact:

Martin Riise
Senior Investor Relations Manager, Europe
Tel.: +45 4446 0738
Fax: +45 4446 9999
E-mail: mrsn@novozymes.com

Thomas Steenbech Bomhoff
Senior Investor Relations Manager, USA
Tel.: +1 919 494 3483
Fax: +1 919 494 3473
E-mail: tsbm@novozymes.com

 

"Novozymes’ share price increased by 14% during the year. In comparison, the OMXC20 fell 15%."
"The Board of Directors proposes a dividend of DKK 1.9 per share for 2011."
"Over the past 5 years, Novozymes’ stock has generated an average annual return to shareholders of 16%."
  • 2011 INDEXED SHARE PRICE DEVELOPMENT
    Index

    Loading Chart...
    Novozymes B
    OMXC20
    MSCI Pan Europe
    DJSI
    FIVE-YEAR INDEXED SHARE PRICE DEVELOPMENT
    Index

    Loading Chart...
    Novozymes B
    OMXC20
    MSCI Pan Europe
    DJSI
    SHAREHOLDER DISTRIBUTION OF B COMMON STOCK

    Loading Chart...
    Denmark
    North America
    UK
    Novo A/S
    Treasury stock
    Rest of world
    Rest of Europe
2011 INDEXED SHARE PRICE DEVELOPMENT
Index

Loading Chart...
Novozymes B
OMXC20
MSCI Pan Europe
DJSI
FIVE-YEAR INDEXED SHARE PRICE DEVELOPMENT
Index

Loading Chart...
Novozymes B
OMXC20
MSCI Pan Europe
DJSI
SHAREHOLDER DISTRIBUTION OF B COMMON STOCK

Loading Chart...
Denmark
North America
UK
Novo A/S
Treasury stock
Rest of world
Rest of Europe