Novozymes 3Q 2009: detergent enzyme sales

F O C US Gradual recovery of China’s detergent product sector During 1H 2009, China produced 3.5645 M tonnes of detergent products, 0.61% more than during 1H 2008. Supportive measures by the Chinese government, such as increased export rebate rates for detergent and surfactant products, helped to offset the effects of the global economic crisis. Synthetic detergents accounted for 3.1133 M tonnes of the detergent production total, down 0.61%, with output of synthetic washing powders falling almost 2% to 1.7439 M tonnes. However, production of liquid detergents grew 1% to 1.3694 M tonnes for 1H 2009, while China’s soaps output was up nearly 10% to 451,200 tonnes compared to the first half of 2008. Nafine Chemical Industry Group, X’ian Kaimi, Reward Group, Sinolight Materials Corp and Kaingsu Longliqi Group are among the major producers in this sector. Prices for detergent products and feedstock have been relatively stable, and production levels have been relatively high. Industry trends include the closing of older production lines and larger growth in liquid detergents output than in washing powders. Research is focusing on the development of concentrated detergents. China Chemical Reporter, 26 Nov 2009, 20 (33), 22

COMPANY RESULTS Clariant quarterly results 3Q 2009: Functional Chemicals For its 3Q 2009, the Functional Chemicals segment of Clariant International Ltd has reported sales of SFR 577 M (SFR 725 M for its 3Q 2008), EBITDA (before special items) of SFR 68 M (SFR 84 M), EBIT (before special items) of SFR 51 M (SFR 67 M), and EBIT of SFR 54 M (SFR 66 M). For the first nine-months of its fiscal 2009, this segment has reported sales of SFR 1765 M (SFR 2138 M for the first nine-months of its fiscal 2008), EBITDA (before special items) of SFR 187 M (SFR 236 M), EBIT (before special items) of SFR 139 M (SFR 185 M), and EBIT of 6

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SFR 130 M (SFR 177 M). Trading patterns in the Functional Chemicals Division continued to follow the trend that has been observed in 2Q 2009. Sales were down 15% in local currencies and 20% in Swiss francs compared to 3Q 2008. Compared to 2Q 2009, however, sales improved. Lower sales prices were offset by a partial recovery in sales volumes. The pressure on sales prices reflects both the raw material costs development as well as the difficult market environment. Clariant Oil Services had another good quarter in Latin America but business conditions in Europe and North America remained difficult. Asia and the Middle East continued to be solid. A recovery of the oil price supported the business and led to a restart of many exploration projects. In contrast, demand from the mining industry did not markedly improve. Demand in the Industrial & Consumer Care (ICC) Business picked up slightly when compared to the precedent second quarter. The consumer-related businesses stabilized while demand in the industrial businesses picked up slightly compared to 2Q 2008. The Crop Protection Business experienced some weakness as the Agrochemicals markets consolidated their recent boom phase. Capacity utilization in Functional Chemicals was higher in the third than in the second quarter which helped the gross margin to remain stable compared to the second quarter. The early and decisive implementation of restructuring measures brought back the operating margin before exceptionals close to the strong previous year’s level. Demand for Functional Chemicals is expected to continue on the current lower level in the coming months as the economic crisis will continue to weigh on consumer spending. The division will counter these developments by continuously focusing on restructuring. In order to secure growth prospects for the Division selective investments in organic growth are also pushed through. In line with this strategy, Functional Chemicals has opened a surfactants production facility in China to cope with the increasing demand from various end-markets in the region [Focus on Surfactants, Nov 2009] and has announced that it will bring an

additional facility on stream in the year 2011. Clariant International Results 3Q 2009, 4 Nov 2009, 8-9 (Clariant International Ltd, Rothaustrasse 61, CH4132 Muttenz 1, Switzerland, website: http://www.clariant.com)

Novozymes 3Q 2009: detergent enzyme sales For the period Jan-Sep 2009, Novozymes’ detergent enzymes business recorded sales of DKR 1992 M (Jan-Sep 2008: DKR 1916 M). The positive development was the result of a continued strong interest across the detergent industry and across geographical areas in including more enzymes in detergent formulations. However, detergent enzyme sales were negatively affected by reduced consumption of detergents and by consumers trading down to detergents containing fewer enzymes. 3Q 2009 sales of detergent enzymes totalled DKR 685 M (3Q 2008: DKR 653 M). Novozymes Group Financial Statement for First Nine Months of 2009, 28 Oct 2009, 3-4,17 (Novozymes A/S, Krogshojvej 36, 2880 Bagsvaerd, Denmark, tel: +45 4446 0000, fax: +45 4446 9999, e-mail: [email protected], website: http://www.novozymes.com)

COMPANY NEWS Reckitt Benckiser proposes to integrate UK Healthcare and Household/Personal Care commercial businesses On 2 Dec 2009, Reckitt Benckiser (RB) announced a proposal to integrate its UK Healthcare and Household/Personal Care commercial businesses into a single business unit, with effect from Apr 2010. It is proposed that the integrated business will operate from the company’s existing UK Household office in Slough, and will be led by Camillo Pane (currently UK Healthcare General Manager), reporting to Brendan Collins, Reckitt Benckiser’s SVP Regional Director Northern Europe. The UK is the only major RB market where the Household/ Personal Care and Healthcare businesses are still operated independently, and this will now bring it into line with other countries where FEBRUARY 2010