The Novozymes stock


Audited by PwC

Novozymes’ stock performed well in 2009, with a 29% increase in price. Performance was especially strong in the last two months of the year.

The Novozymes stock is listed on NASDAQ OMX Copenhagen A/S 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’ overall financial ambition is to provide its shareholders with competitive returns. Shareholder value is created by share price appreciation, dividend payments, and stock buy-backs.

Novozymes’ share price development

At the end of 2009, the common stock of DKK 650 million, or 65 million shares, was unchanged from the level at the end of 2008.

Novozymes’ stock (DKK)

2009

2008

Price, year-end  540 418
Total market value, year-end (billion)*  29.3 22.7
Earnings per share, diluted 18.93 16.86
Dividend per share 5.75**  5.25

* B shares    
** Proposed

The average daily trading volume of Novozymes’ stock in 2009 was 164,441 shares, or DKK 72 million, making it the eighth most actively traded stock on NASDAQ OMX Copenhagen A/S. At year-end 2009, the total market value of Novozymes B shares was DKK 29.3 billion.

Novozymes’ share price increased by 29% during the year. In comparison, the increase in the OMXC20 was 36%, Dow Jones Chemicals Europe Index 44%, and NASDAQ Biotechnology Index 16%.

Over the last five years, Novozymes’ stock has generated an average annual return to shareholders, including dividends, of more than 20%. This can be compared to the five-year average return of 3% for the OMXC20, 0% for MSCI PAN Europe, -1% for Dow Jones World Sustainability Index, 16% for Dow Jones Chemicals Europe Index, and 2% for NASDAQ Biotechnology Index.

Dividend

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 5.75 per share for the 2009 financial year. This will result in an expected total dividend payment of approximately DKK 358 million.

Distribution (DKK) 2009 2008 2007 2006 2005
Dividend (million) 358* 326 309 278 255
Stock buy-back (million) 0 0 500 1,107 1,053
Total (million) 358* 326 809 1,385 1,308
Net profit (million) 1,194 1,062 1,042 911 861
Payout ratio 30.0%* 30.7% 29.7% 30.5% 29.7%
Number of shares outstanding,
year-end (million) 
62.2 62.0 61.8 61.8 63.9
Dividend per share 5.75* 5.25 5.0 4.5 4.0

* 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-back may also be carried out to cover employee stock option obligations.

Dividend dates, 2010

 
Resolution adopted at the Annual Shareholders' Meeting March 3
Last day of trading with right to dividend for 2009 March 3
First day of trading without right to dividend for 2009 March 4
Disbursement of dividend March 9

My Report
2009 INDEXED SHARE PRICE DEVELOPEMENT
Index
FusionCharts.
Novozymes B
Dow Jones Sustainability World Index
NASDAQ Biotech
Dow Jones Chemicals Europe
OMXC20
MSCI PAN Europe
FIVE-YEAR INDEXED SHARE PRICE DEVELOPMENT
Index
FusionCharts.
Novozymes B
Dow Jones Sustainability World Index
NASDAQ Biotech
Dow Jones Chemicals Europe
OMXC20
MSCI Pan Europe