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Biomass ConversionOn the cusp ofcommercializationSebastian Søderberg,Vice President BiomassConversion, NovozymesClaus Crone Fuglsang,Vice President R&D, NovozymesJoão Alberto F. de Abreu,Executive Director Agroindustrial,Raízen

Forward-Looking StatementsThis presentation and its related comments contain forward-looking statements, including statements about future events,future financial performance, plans, strategies and expectations. Forward-looking statements are associated with wordssuch as, but not limited to, "believe," "anticipate," "expect," "estimate," "intend," "plan," "project," "could," "may," "might"and other words of similar meaning.Forward-looking statements are by their very nature associated with risks and uncertainties that may cause actual resultsto differ materially from expectations, both positively and negatively. The risks and uncertainties may, among other things,include unexpected developments in i) the ability to develop and market new products; ii) the demand for Novozymes’products, market-driven price decreases, industry consolidation, and launches of competing products or disruptivetechnologies in Novozymes’ core areas; iii) the ability to protect and enforce the company’s intellectual property rights; iv)significant litigation or breaches of contract; v) the materialization of the company’s growth platforms, notably theopportunity for marketing biomass conversion technologies or the development of microbial solutions for broad-acre crops;vi) the political conditions, such as acceptance of enzymes produced by genetically modified organisms; vii) the globaleconomic and capital market conditions, including, but not limited to, currency exchange rates (USD/DKK and EUR/DKK inparticular, but not exclusively), interest rates and inflation; viii) significant price decreases on input and materials thatcompete with Novozymes’ biological solutions. The company undertakes no obligation to update any forward-lookingstatements as a result of future developments or new information.2

Session outline Progress and challengeslast 18 months Reasons to believe in biomassconversion Innovation priorities Raízen: Views from leadingbrazilian sugar cane crusherand biomass conversionpioneer3

15 years of continuous development and oneof our largest R&D investments2001One of largest R&Dinvestments inNovozymes’ historywas initiatedFoundation42005200920122013Biomass conversionpilot plants worldwidetesting NovozymesenzymesLaunch of Cellic CTec for the firstcellulosic ethanoldemonstration plantsThe first commercialcellulosic ethanolplant: Crescentino –using Novozymes’Cellic technologyExclusive partnershipwith Brazil’s largestsugar-based ethanolproducerPilot stageDemo stageBusiness Development – BioAgriculture – Biomass Conversion – Animal Health & NutritionInitial commercial stage2015Five of seven largescale biomassconversion ethanolplants globally useCellic technologyOptimization stage

Progress towards commercialization sinceCapital Markets Day 20135Biomass conversion industry in fall 2013Biomass conversion industry today Beta Renewables’ Crescentino plant is the world’s firstand only commercially operating cellulosic ethanol plant Six commercial plants are in operation with Novozymessupplying five of them. DuPont to be #7 Three plants under construction in the US and two in LA All process steps undergoing optimizations Large number of publicly announced biomass conversionprojects 20 solid biomass conversion projects are underdevelopment globally (not all publicly announced) Expectation of a relatively fast industry commercialization Novozymes’ Cellic CTec3 is the leading enzymetechnology (one size fits all enzyme product)Recognition that industry commercialization will takelonger Novozymes is committed to pursue further processoptimizations beyond enzymes. Our customized nextgeneration Cellic enzyme solutions are being launched Novozymes heavily engaged in project development with“boots on the ground” globallyBusiness Development – BioAgriculture – Biomass Conversion – Animal Health & Nutrition

Headwinds and longer timelines than anticipated, butseveral reasons lead us to believe that these will be overcomeProlonged industry ramp-up Up-scaling of commercial plants takes longer thanexpected. From serving 15 plants by 2017 to anassumption of 15 by 2020New industries take time– it’s a marathon, not a sprint Many industries deliver lower Capex over time New projects struggle to find financing, as everyone isin waiting mode to get confirmation of the economics Novozymes as a full biotech solutions provider to bolsterbiomass conversion process optimization Some projects have been cancelled or on hold Healthy project pipeline continues to mature Expectation that internal combustion engines / liquidfuels will play a substantial role in the future National blending mandates in the EU(Italy announced, more in the making) Brazil ethanol blending mandate increase to E27Macro and regulatory uncertainty 6 Lower oil price casts uncertainty and makes for atougher environment for biofuels – particularly in theUS and AsiaUS ethanol demand stuck in limbo due to the blendwall and unclear regulatory frameworkBusiness Development – BioAgriculture – Biomass Conversion – Animal Health & Nutrition

Comparable disruptive technologies have taken 15 years to take off;enabling an industry is a “marathon” with multiple hurdles to be overcomeCorn ethanolSolarInstalled corn ethanol capacity (U.S.), 1990–2014Million gallons/yearGlobal solar power cumulative installed PV capacity 2000–2012MW120,000 4%15,000100,00010,000 57%80,000 29%60,000 9%5,00040,000 le gas030405060708Global cumulative installed wind capacity 1996–2013MW350,000300,000250,000200,000150,000 27%100,00050,00003025 38%201510 25%5002030405060708091011122013Source: US Renewable Fuels Association (annual capacities) after 1999 and SRI (from 1990); Industry reports; McKinsey analysis7020910112012WindGas production from shale gasBillion cubic feet per day2000 0101Business Development – BioAgriculture – Biomass Conversion – Animal Health & Nutrition200001020304050607 23%08091011122013

Significant learnings in first biomass conversion plants and the example of the US 1Gindustry suggest that Capex will reduce for the next wave of biomass conversion plantsMajor reasons for reduced Capex:Capex development over timeExample: 1st generation corn ethanol plants in the U.S. Optimized plant and process designincluding less over-engineering Development of standard modules400Capex, USD (2005) / m3 Bolt-on solutions use existinginfrastructure and 0350400Plant production capacity 1,000 m3 / yearSource: Data: LeBlanc and Prato, 1982, Gavett et al.1986, Whims, 2002, Understanding the reductions In UScorn ethanol production costs8Business Development – BioAgriculture – Biomass Conversion – Animal Health & Nutrition450

In spite of existing challenges, we see a solid project pipelinethat continues to mature across regionsWhile several biomass conversionethanol plants are already operating,more than 20 solid biomass conversionprojects are under developmentglobally (not all publicly announced) Publicly announced, commercial biomass conversionprojects under development by region (Q1/2015)*Project ItalyProject AlphaDifferent business models: Co-marketing with BetaRenewables Project development Large strategic partners e.g.Raízen*Non-exhaustive9Business Development – BioAgriculture – Biomass Conversion – Animal Health & NutritionTeck GuanPunjab

Major improvements in Novozymes’ enzyme technology have been a key enabler ofbiomass conversion commercialization and will drive further plant optimization 10080Enzymeuse costsdevelopment(indexed)6040200 everity2008Enzymedosing2009Cellic CTecTotal solidsloading2010Cellic CTec22012Cellic CTec32015CustomizedCellic 1.0Hydrolysis Biomass to sugarconversiontimeBusiness Development – BioAgriculture – Biomass Conversion – Animal Health & Nutrition2018YearsSweet spotoptimized to getthe lowest unitcost of ethanolCustomized Cellic enzymetechnology: Further improvement isachieved through customization ofenzymes to match specific processand feedstockEnzymes as a valuable tool:Sweet-spot optimized enzyme dosingensures the lowest unit cost of ethanolcost. For example, improved enzymeperformance has been shown to reducethe use of acid in pretreatment

Novozymes biotech solutions continue to bolster biomass conversionprocess optimization and its competitivenessNovozymes launches new family ofcustomized Cellic enzymestailored to reduce enzyme cost andimprove production performancePretreatment HydrolysisFermentationOngoing optimization of all processsteps will further reduce productioncostsNew customized Cellic solutions and further process optimizations continue toreduce biomass conversion costsCellulosic ethanol production costs Cellic CTec3Note: Based on NREL acid pretreatment process11Business Development – BioAgriculture – Biomass Conversion – Animal Health & NutritionCustomized Cellic solutionsCustomized Cellic Cellic solutionssolutionsCustomized further processe.g.further optimizationsprocessyeaste.g. yeastoptimizations

Customer-centric Novozymes Cellic enzyme development– tailored to the individual process and feedstock Diverging processes with differentfeedstocks are being established atindustrial scaleFor every combination of processand feedstock, there will be anoptimal enzyme systemEvery enzyme system benefits fromoptimization work BiomassPretreatmentBiomass after cid40%AlkaliEnergycropsBagasse20%Org. solventsCornstover12TailoredCellic solutions0%WheatstrawBusiness Development – BioAgriculture – Biomass Conversion – Animal Health & NutritionCelluloseHemicelluloseLignin

Customized Cellic enzyme solutions;process, feedstock, temperature and pH Key benefits vs. Cellic CTec3Yield boost – Improved hydrolysis performance on xylan-richsubstrates Robust activity – Broader pH and temperature profiles providerobust activity Contamination control – Higher hydrolysis temperature andlower pH inhibit contamination Lower OPEX – Reduced base consumption and waste treatmentcosts CustomizedCellic % conversion Cellic CTec3 What’s next? Adapt customization to evolving partner processes Continue optimization efforts together with partners – to drive outcost not only of enzymes but also of process and potential CapexEnzyme-relative dose13Business Development – BioAgriculture – Biomass Conversion – Animal Health & Nutrition

E2G ProgramJoão Alberto F. de Abreu

Agenda Introduction to Raízen Raízen's strategy How 2G fits into this Current status on Raízen's 2G efforts Learnings from plant #1 (in broad terms) Obstacles to overcome for the industry/Raízen Opportunities and plans for the future

RaízenLubrificantesCosan Lubrificantes eespecialidadesDownstreamUpstream

Business dimensionsWorld’s largest sugar producer andBrazil’s largest sugarcane ethanol producer915,000 ha2 bi litersof cultivated areaof ethanol96%941 MWmechanized harvestingof installed capacity4 m tonsof sugar

Fuel distributionA highly efficient and reliable network524591060Retail stationsConvenience storesDistribution depots58 Airports bases23,6 Billion m³

19Raízen – general numbers in 2013/14World cane crushing (mln land1107ºPakistan504ºChina8ºAustralia32* Source: LMC.100

Ethanol, sugar and bioenergyStrategic driversAspiration:Lower cost of production per sugarcane tonesCost reductionProductivityROACEX%Business driversPortfólio managementBiomassHSSEEnablersPeopleCrushing65,4MM TC