Good morning, everyone, and welcome to Novozymes full year 2020 conference call. My name is Tobias Björklund, and I'm the head of investor relations here at Novozymes. At this call, Ester Baiget, our CEO, and Lars Green, our CFO, will review the performance for 2020, including the fourth quarter and the outlook for 2021. The rest of the executive team is also present. We expect the presentation to take roughly 30 minutes, after which we'll open up for questions. Before we begin, I would like to remind you that the information presented during the call is unaudited and that management may make forward-looking statements. These statements are based on current expectations and beliefs and involve risks and uncertainties that could cause actual results to differ materially from those described in any forward-looking statements. With this, I'll now hand you over to our CEO, Ester Baiget. Ester, please. Thank you, Tobias, and thank you all for calling in. I hope that everyone has had a good and productive start of the new year. Since we last met in October, we have had a lot of exciting and important achievements through the organization. I'd like to take this opportunity to mention a few of them. We have structured our business and reporting according to the new organization setup. We have hired Amy Byrick from DuPont as our new head of strategy and business transformation, Morten Rasmussen from Vestas to head up our people, sustainability, and brand. They will both join us in April. We have entered into exciting partnership with Givaudan that will focus on providing integrated food and cleaning solutions. As announced this week, we have entered into the area of enzymatic biocontrol for agriculture via long-term partnership with a U.S.-based company, FMC. We have made a second exciting acquisition in human health to accelerate our North American presence and strengthening our commercial capabilities. We had a strong 4 quarters from an innovation point of view, launching 11 new solutions in the quarter alone and reaching a total of 18 launches for the full year. On our journey becoming carbon neutral, our North American headquarters, located in the state of North Carolina, are now 100% solar powered. As you can see, we have had a very high activity level, this in a year that has been different in so many different ways. I am very proud of the way we, as a company, have digitally navigated through these difficult times. Now it's time to look ahead. Before we present the 2021 outlook, I like to spend a few minutes reviewing the results for 2020. Could you please turn to slide number two? Organic sales performance was flat for the year and declined by 3% in the fourth quarter. This was all in line with the expectations. The performance was mixed across the business areas, which were impacted in different directions by the pandemic during the year. Household Care benefited, while Bioenergy and Grain Processing contracted. Sales in emerging markets grew by 1% organically, while developed markets declined by 1%. Our earnings and cash flow were solid despite a flat organic top line, currency headwinds, and one-off costs. Now let's turn to the outlook, where we expect sales to grow by 2% - 6% organically in 2021, and we expect solid earnings and cash flows. Sales growth will be driven by innovation, by stronger commercial presence, and by a gradual recovery in those industries affected by the pandemic. Let us now look at each of the business areas in a little bit more detail. Please turn into slide number three. Sales in household care grew by 5% organically, driven by the freshness rollout, increased penetration in emerging markets, and supported by increased consumer demand for laundry and dishwashing detergents. Sales were flat in the fourth quarter, and this was as expected and driven mainly by destocking and lower demand from the professional cleaning area. In addition, last year, Q4's comparator was quite demanding. The rollout of the freshness platform continues to drive growth and to develop according to plan. The technology is available to consumers across most major European markets and as well as parts of Southeast Asia, the Middle East, and Africa. Looking ahead, in 2021, growth will be led by the continued penetration of our solutions with the focus on emerging markets. Along with increased penetration, we are preparing for the broad market launch of the freshness technology. This is a key milestone, and it is expected to become an important growth contributor in future years. We're also expecting consumer sustainability awareness to become an increasingly important trend. This is shaping up to become an exciting long-term driver for increased usage of enzymes and microbes across the cleaning space. Please turn into the slide number four. Excuse me. Food beverages, and human health grew by 1% organically in 2020 compared to 2019. The performance was mixed, with food doing well, benefiting from increased at-home consumption, while beverages, mainly brewing, was impacted negatively by COVID. Human health progressed well, although it only accounts for a relatively small part of the business area. In the fourth quarter, sales declined by 4%, which was roughly in line with expectations. The decline was driven by destocking in baking, while beverages improved compared to previous quarters. We have seen exciting progress for the strategic opportunity area, Human Health. In Q4, we launched a new product, BioFresh 4+, and announced the Microbiome Labs acquisition. By acquiring Microbiome Labs, Novozymes has added a broad range of proprietary microbiome solutions. The acquisition also creates an attractive entry point into the North American probiotics market via network of healthcare practitioners. It is a key milestone for advancing Novozymes human health activities. BioFresh 4+ is a clinically proven enzymatic technology for fighting bad breath, giving up to four hours of lasting effect. Additionally, in the food space, we launched three new products for baking, two of which target the broad market, Optiva LS, which allows for the reduction of added sugar in bread, and Gluzyme Fortis, a gluten strengthening tailored to baking conditions in emerging markets. For 2021, we expect broad-based solution growth across food, beverages, and human health. Innovation and emerging market penetration, supported by increased consumer dietary health awareness, are the main drivers for growth in the food business. In beverages, we expect a gradual recovery following the 2020 COVID-19 related disruption. Please turn into slide number five. Bioenergy declined by 9% organically in 2020. While the performance was mixed across the regions, the decline was expected and driven by the lower ethanol demand in U.S. following COVID-19 related stay-at-home restrictions. According to the U.S. Energy Information Administration, production rates for 2020 are estimated to be down 12%-13% compared to 2019. Outside of the U.S., all major regions contributed to growth. In the fourth quarter, sales declined by 4%. Similar to the full-year trend, the decline was driven by lower industry production rates in the U.S. However, the performance in Q4 improved compared to the lows early in the year. We also launched a new solution called Fortiva Hemi. Fortiva Hemi unlocks improvements in both corn oil and ethanol yields, and is another step on our journey to provide even better full-service solutions to ethanol producers. Looking ahead, the U.S. ethanol production is expected to gradually recover following last year's severe industry disruption, with a full recovery to 2019 production levels not expected until later. Further, uncertainty persists in the U.S., with high ethanol inventories, low producer margins, and continued concerns about gasoline demand. Exports, more miles driven, and higher blending are ways for the industry to expand. Outside the U.S., Novozymes' solid presence, combined with an underlying capacity expansion, is expected to support growth also in 2021. Please turn into slide number six. Grain and Tech Processing, a combination of the former food and beverages processing areas and what we previously referred to as Tech and Pharma, declined by 1% in 2020 and by 4% in the fourth quarter. The performance was mixed, with Tech being the reason for the decline, both for the year and in the fourth quarter. The decline was due to the negative impact of COVID-19, causing significant disruption in global textile production. While the performance was still negative compared to Q4 2019, sales declined less in the fourth quarter compared to earlier in the year. Grain posted solid growth in 2020, with the fourth quarter roughly flat. Growth in 2020 was broad-based and especially strong in grain milling and vegetable oil processing. Starch grew slightly in 2020, but declined as expected in the fourth quarter due to timing. For 2021, Grain & Tech Processing is expected to grow. Growth in the grain business is led by vegetable oil processing, and in tech, growth will mainly be driven by a gradual recovery in the global textile industry. Please turn into slide number seven. Agricultural, Animal Health, and Nutrition grew 1% organically in 2020 and declined by 6% in the fourth quarter. In 2020, the double-digit organic sales growth in agricultural was broad-based across the main categories. Sales benefited from a one-off in the second quarter, as previously highlighted. Sales in the fourth quarter declined mainly due to timing. Animal Health and Nutrition declined in 2020 following a weak second half of the year, including the fourth quarter. The full-year sales decline can be explained partially by inventory adjustments following a strong first half of the year and partially by related weak end market demand for our nutritional solutions. In 2021, we will continue to build and develop the BioAg business across crops and regions, aiming for an underlying double-digit organic sales growth. For Animal Health and Nutrition, the outlook reflects persistent uncertainty. This relates particularly to the nutrition part of the business, as inventory levels in the value chain and COVID-19 implications are less clear. A strong product portfolio and partnership set up, coupled with signs of improving pharma economics following many years of challenging conditions, make us cautiously optimistic about the coming years. That's all for me now. I will hand over to Lars. Lars, please. Thank you, Ester. Please turn to slide eight. Let me start by reviewing the performance of our sustainability and non-financial targets. As part of the updated strategy, we adopted a new set of ambitious sustainability targets. The framework considers both our opportunities for having a positive impact through our commercial solutions and our responsibility to minimize the impact of our own operations. The targets focus on the impact Novozymes products have globally, as well as our own operations and on our employees. For each of the global challenges, we have defined long-term 2030 commitments to set the direction and midterm 2022 targets to drive performance in line with our strategy. Here in 2020, we are already well on track to deliver on 12 out of our 13 targets set for 2022. We are very encouraged by this, and it demonstrates our relentless focus on the important ESG-related agenda. Please turn to Slide nine for our 2020 financial performance. The group's organic sales performance was flat for the year and declined 3% in the fourth quarter. Sales in reported Danish kroner declined 3% for the full year and 8% in the quarter. Adverse currency developments, especially in relation to the U.S. dollar, had a significant negative impact on the reported Danish kroner numbers, while the additional sales from PrecisionBiotics Group, which was acquired in June, had a smaller positive effect on reported numbers. We delivered a solid set of financials in 2020, despite the very challenging conditions. The gross margin increased from 55.3% in 2019 to 56.0% in 2020. The full-year gross margin benefited from lower input costs, improved production efficiency, and a one-off settlement in the second quarter related to the former BioAg set-up. The adverse currency developments and severance costs related to the September 1st reorganization affect the full-year gross margin negatively. The fourth quarter gross margin was 55.5%, slightly lower than the 2019 figure due to negative currency effects. The underlying full-year and fourth quarter gross margins adjusted for one-offs and currency effects were somewhat higher than in the corresponding periods of 2019. The EBIT margin ended at a solid 26.1% in 2020. This was two percentage points lower than in 2019, and the difference is explained by currency, M&A, and one-offs. If you look at the 2019 EBIT margin, it benefited from the recognition of deferred income at the termination of the BioAg alliance in the second quarter of that year, as well as proceeds from the divestment of a pharma-related royalty in the second and fourth quarters. It was negatively affected by restructuring costs in the third quarter of 2019. The EBIT margin in 2020 was positively affected by the aforementioned one-off in BioAg and a contingent income from that same pharma-related royalty divested in 2019. The EBIT margin was adversely affected by severance costs related to the September 1st reorganization, transaction costs, and P&L effects from the acquisition of PrecisionBiotics, as well as transaction costs related to the Microbiome Labs acquisition in the fourth quarter. We incurred an impairment loss in the fourth quarter. The adjusted EBIT margin, excluding one-offs and accounting for currency headwinds, ended at around 27% in 2020. This was roughly one percentage point higher than the 2019 adjusted EBIT margin of around 26%. The improvement was mainly driven by a higher underlying gross margin and lower operating costs. The reported EBIT margin for the fourth quarter ended at 23.1%, which was 6.5 Percentage points lower than in the fourth quarter of 2019. Adjusted for the aforementioned one-offs, M&A, and currency headwinds, the EBIT margin in the fourth quarter was roughly 26%, which was similar to the underlying EBIT margin in the fourth quarter of 2019. The return on invested capital, including goodwill, ended at 18.9% in 2020, which was 2.2 percentage points lower than in 2019. The decrease in ROIC was due both to lower net operating profit after tax and higher average invested capital. Net investments, excluding acquisitions, ended slightly above DKK 900 million in 2020. This was slightly below the level in 2019 and equals 7% of sales for both years. The free cash flow before acquisitions ended at a very strong DKK 3.4 billion in 2020. This was DKK 1.2 billion more than in 2019. The improvement was mainly driven by higher cash conversion from better earnings quality, the one-off in BioAg, as well as positive changes and timing effects in working capital. Please turn to Slide 10 for the 2021 outlook. Organic sales are expected to grow by 2%-6% in 2021. The upper and lower bounds will mostly depend on the pace and level of the gradual recovery in the market. Seen over the year, we project organic sales in the first quarter to decline by mid-single digits due to a tough comparator. Full-year sales in reported Danish kroner are estimated to be roughly one percentage point less than the organic sales growth outlook due to a negative currency effect and a positive M&A effect. For the business areas, organic sales in Food, Beverages, and Human Health, and Grain & Tech Processing will grow by mid-single digits. Bioenergy is expected to grow by mid to high single digits. Household Care is forecasted to grow in the low single digits in 2021, following a better-than-expected performance in 2020. We expect flat to low single-digit growth in Agriculture, Animal Health, and Nutrition. The EBIT margin outlook is 25%-26%, including a negative year-on-year impact from currency and M&A related effects of close to one percentage point each. Adjusting for the negative currency and M&A related effects, the implicit underlying EBIT margin is 27%-28%. This is an improvement compared to the underlying EBIT margins of roughly 27% in 2020 and roughly 26% in 2019. The underlying development is mainly supported by sales growth as well as productivity improvements, and also includes continued reinvestments in the business. The free cash flow before acquisitions is expected at DKK 2.7 billion-DKK 3.1 billion. This is slightly lower than in 2020, as higher net investments and timing in working capital offsets the positive effects of higher sales and an improved operational cash flow. Net investments are expected at between DKK 1.0 billion and DKK 1.2 billion. This reflects maintenance, expansion, and optimization CapEx. The outlook for the return on invested capital including goodwill, is around 19%. Subject to approval at the annual shareholders meeting in March, we propose an unchanged dividend of DKK 5.25 per share, corresponding to a payout ratio of 51.9% compared to 56.8% last year. In addition, we are initiating a share buyback program of up to DKK 1.5 billion for 2021. This is in line with our capital structure policy to return the free cash flow generated to shareholders through a combination of dividends and share buybacks at a net debt to EBITDA ratio of around one. In summary, we expect positive sales and financial developments in 2021, while being mindful of the uncertainty related to the ongoing pandemic. Before I hand back over to Ester, I would like to give you an update on how we're tracking towards our midterm targets. You'll find them on slide 11. We set the midterm targets back in June 2019 based on a stable world economy, a stable currency environment, and excluding M&A activity. The world has not been stable and currencies have moved. Novozymes has made two acquisitions in the human health space. We have scenarios for the 5%+ midterm organic sales target in our 2021 outlook and in our plans for 2022. However, the world has changed and so have some of the parameters from 2019, and we address these new circumstances with a relatively broad 2021 sales outlook. When it comes to our earnings, we are also on track to deliver on our midterm targets. The implied 2021 underlying EBIT margin is 27%-28% on track towards meeting the midterm 2022 target of 28% or higher. The same applies to the underlying ROIC including goodwill, where we see 23% as being within range. Finally, we are also on track to deliver on 12 out of our 13 ESG related non-financial targets. With this, I'll now hand back to Ester for a wrap-up before we open up for questions. Ester, please. Thank you, Lars. Please turn to slide number 12. The work we've done during 2020 has built a solid foundation and positioned us to accelerate growth, securing our long-term potential. To continue our progress here in 2021, we will, amongst other things, work to drive sales from new solutions launched during the last five years to constitute more than 30% of our sales. Work to generate more sales leads with at least 50% of those sales leads generated digitally. Engage in at least three large commercial or R&D partnerships. We announced the first one yesterday through the collaboration with a U.S.-based company, FMC. Drive and be a strong voice on the world stage for the ever-increasing need for sustainable solutions by taking part in at least three global events, such as the World Economic Forum in Davos last week. To summarize the message here today, we have a positive view on 2021 and beyond, despite the uncertainties and the persistent challenges from COVID-19. We continue to focus on bringing the voice of the customers into our business. This will ensure that the solutions launched from our innovation pipeline are translated into commercial success with an even greater impact for our company and for the world. With that, we're ready to take your questions. Operator, please begin. Thank you. Ladies and gentlemen, if you do wish to ask a question, please dial zero one on your telephone keypads now to enter the queue. Once your name is announced, you may ask your question. If you find that it's answered before it's your turn to speak, you can dial zero two to cancel. In the interest of time, please limit yourself to one or two questions per turn, and you may rejoin the queue to ask further questions. Our first question comes from the line of Gunther Zechmann from Bernstein. Please go ahead. Good morning, Ester. Good morning, Lars. I'll start with two, please. First, I'd like to understand better your midterm targets in the context of your 2021 guidance. Understandably, quite wide guidance for 2021, given the uncertainty. The 5%+, is that a per year or a CAGR target? Anything that you may or may not achieve below 5% in 2021, do you expect to recover that in 2022 or beyond that? That's my first question. The second one on BioAg, thanks for splitting out the targets for 2021 as well with double-digit growth. Can you just remind us how big soy is? Is it around 40% of sales in BioAg today? How much of that double-digit growth that you guide for is from improved soft commodity prices, mainly soy, and how much is Novozymes specific product launches and higher penetration of the acreage? Lars, if you could take the first question on the aggregated sales, and Tina then follow up with BioAg. Yes, thank you for that question. The way to understand our midterm targets is that this is on an annual basis. It's not cumulative, you should consider them one by one. That's how we have defined the long-term targets. On BioAg, we're looking at, as you were saying, Gunther, the double-digit growth when adjusting for the one-off which we had in 2020. We expect growth both to come from corn and soy. We see a growth also from our biocontrol area, both with the products we have in the market, like the Syngenta partnership which we have, and then also from our innovations in the upstream corn area. The growth is going to come from a mix of innovations as well as acreage expansion and how we go to market. You also asked about how big is soy out of our BioAg, and it is roughly a third, I would say. Great. Thanks, Tina and Lars. That's helpful. Thank you. The next question comes from the line of Laurence Alexander from Jefferies. Please go ahead. Good morning. two questions on Bioenergy. With the shift by the U.S. ethanol producers to start moving towards more co-products, whether high protein cuts or trying to convert dry mills into sugar plants, are those transitions a net positive or negative for Novozymes compared to the enzymes sold into the ethanol production? Secondly, can you give an initial view on how the RFS might evolve after 2022? Tina, please. Yes, super good questions. On the co-products, I would say it is neither negative nor positive. What is positive, and that's what I think you'll see most, is that the ethanol producers need to have a good margin in order to operate. The possibility for them to generate more value from co-products is a positive in that aspect. The enzymes we are selling is also important for them to help them get higher benefits, whatever it is, whether it is in DDGS, whether it is in corn oil and so forth. It gives us an innovation space to enter into. I'm sure you remember we announced also a collaboration in that field with Green Plains about a year ago, a bit more than a year ago. I would say it is a slight positive for us. It gives extra innovation space, but overall, the most important is that the ethanol, or the biorefineries, that they have a good outlet for the products, being it ethanol or being it something else. On the second point you were asking about with the RFS beyond 2022. In the U.S. right now, there is the mandated blending of these roughly 10% based on the RFS. I think that what is key there is that in the U.S., and if you look at the economy for blending in ethanol, it is securing that you have a cleaner fuel, and it is securing that you have a more cheap fuel at the pump compared to if you didn't include ethanol. Overall, I would say that it is more the economics which is supporting ethanol being blended in the U.S. However, it is also important for the blending in that you do have the octane boost, which is an important part of a fuel mix as well. I'm convinced that no matter what the RFS is going to bring beyond 2022, that there is both an economic as well as performance-based need for ethanol in the fuel mix, and then not to forget the CO2 reductions that it is delivering to the world. Thank you. The next question comes from the line of Søren Samsøe from SEB. Please go ahead. Yes, good morning. Søren from SEB. First, on the margin you're talking about for 2021 underlying 27%-28%. When you say you can compare with 27% last year and 26% in 2019. When you say we should compare with those years, what did you in that calculation exclude and include in terms of one-offs or things you think you should adjust for? That's my first question. We stay with the first question, Lars, could you please answer that one? Yes. Thank you, Søren, for that question. As we said, this year, 2020 was impacted by a number of one-offs. One of them being The reorganization and the cost associated with that. We have also, in the second quarter, you'll remember, we have a positive contribution from the BioAg settlement. We also have M&A related effects in 2020, both the acquisition cost for PrecisionBiotics and Microbiome Labs, as well as a bit of impact on the ongoing operational margin from PrecisionBiotics being on our books for half a year. Here in the fourth quarter, we took an impairment loss of one of our intangible assets. In 2019, we had a very substantial income in the second quarter in particular related to the termination of the BioAg alliance, where we basically took the deferred income we had on the balance sheet and recorded as an other ordinary income. Likewise, we sold and divested the pharma-related royalty stream that both impact the second quarter and later on also a sort of deferred income on that, or contingent income in the fourth quarter. In 2019, we then had a negative impact from some of the restructuring costs we had in the third quarter. Those were the effects of 2020 and 2019. Great. Thank you. Just on bioethanol, it did -4% Q4. Just if you might, how did that compare with market growth and what have impacted that you have grown differently than market growth? How has it been going in yeast and in Brazil and et cetera? Tina, please. Q4 EIA numbers is roughly - 7%, so it's a stronger performance from Novozymes side. It is driven by, I would say, a number of things. A, there's timing between quarters, as I'm sure you know, Søren. It's difficult with exact, you could say, splitting it up on quarters. We saw growth both from yeast, continued from yeast, but also I would say mostly from emerging markets, Latin America, as we have talked about a number of times. I also think it's important to say that as we also have talked about a number of times, EIA is an estimate. It's not the only estimate which there are for the U.S. ethanol industry. Our customer base now and then does something different, and so does our performance. Overall, stronger performance than what EIA is indicating, driven by mostly Latin America, I would say, but also other emerging markets. Okay. Finally, if you could just tell us how would you think about how would the higher corn prices that we've seen recently impact your business net net if you look across the areas in 2021? Also, if you can remind us how big part of group earnings today that BioAg is. Thank you. On corn prices, what we are seeing is that in general, higher commodity prices mean that there's more benefit on the solutions we are bringing. That makes me, you could say, cautiously optimistic for the agriculture area, including the feed area. Also in the grain side, as we also see stronger benefit for our solutions there. On the grain side, we need to watch it as well, what is happening to sugar, as you know. On the bioethanol side or Bioenergy side, it is, you could say the margin for the producers, which is important. Overall, a higher corn price will lead to more wish in order to generate yield, but it needs to be that there's also a demand for the products or for the ethanol out in the market. Because if not, if the margin becomes too depressed, then the producers will stop producing, and then that's a negative. A bit mixed picture. Lars, could you please build on also? Yeah. Just one supplemental fact, which is that some of our input cost is of course also depending on the corn price. There is a little bit of a negative margin impact on the gross margin from an increasing corn perspective. Just adding on top of the business perspective on the sales that Tina shared. How big part of your earnings was BioAg today? On the turnover-wise there, BioAg is roughly a third of the segment on agriculture. Profit-wise, we do not share that detailed level, even at the sub-segment level. Margins are lower than group average. That would be fair to assume, right? Søren, we're not sharing the margins per business area. I think what you will know is that we have significant investments from an R&D perspective. Of course, we are making those investments in return for an expected longer-term growth. We're not sharing the details on the margin by the business area. What is important to mention on BioAg is first the strong pull that we see from the industry on the increased need for more sustainable solutions both from the yield enhancement but also from a biocontrol perspective. That this is a long-term journey that we are investing, and we are firmly moving ahead just because we see the strength and the fit for our solutions as providing the answers. The recent announcement we've made on the partnership with FMC is a true example of the strength of our portfolio and why enzymes will be an enabler of replacing chemicals in the use of pesticides today. We are in, we're fully in, and we believe on the long-term growth capabilities for this business as it continues to contribute to the bottom line today and will deliver growth also in 2021. Okay. Thank you, guys. The next question comes from the line of Michael Novod from Nordea Markets. Please go ahead. Yes, thank you very much. It's Michael from Nordea. Two questions as well. First of all, maybe I didn't hear it, but could you perhaps just split up the FX impact and the M&A impact? The actual negative FX and the actual positive M&A impact for 2021. Then secondly, to your midterm targets. Just to get it right, let's say you only do 3% in 2021, then you do 5% in 2022. Will you then have met the target? I guess it doesn't sound like that on your CMD 2019. It was more sort of an average of 5% plus per year it said. To that question as well, it said organic sales growth on your slides at the CMD, whereas when you look in your printed annual report now, it just said sales growth. Is it organic or is it reported just to get including M&A? Thank you. I will let Lars go into the fundamentals from the individual finance components of your question. If there's one thing I would like you to hear from us is that we are a company that is positioned for growth, from both an innovation capability, from the platform, from our technology, and that the work that we deliver with the results that we show in 2020, if anything, it shows our capability to react to a very volatile demand. To capture the upsides, what we did in Q1, but also to capture the recovery that we saw through the year in bioenergy or segments like textile. This year and the next one to come, we're going to continue to work and deliver on the underlying fundamentals that were set when we put our growth ambition. Those ones remain intact. We're going to continue to deliver on innovation. We're going to continue to bring in a stronger presence into the commercial or closer to the emerging geographies or stronger penetration of digital capabilities. We made the milestones already on putting the foundation for capturing growth in a segment such as human health with the two acquisitions we put. We are also living in a world with volatility, and we're embracing that one. What I want you to hear from us is that we're moving ahead firmly on the areas that we can control, and those ones we stay firm and positive and extremely motivated, and then we're reacting to the uncertainties that the market brings in, translating the number in the highest one that it's possible. We are in the growth space. To your questions, Michael. On the guidance for 2021, we set approximately one percentage points of negative impact from both foreign exchange rates and also from M&A. If you take a look at the transparency we have provided on the exposure to U.S. dollar, then you will see that we have roughly 35% of our sales denominated in U.S. dollar. If you look at the development from an average of 654 in 2020 to the current spot rates, that's a decline of 6%-7%. We say that 5% impact is roughly DKK 130 million-DKK 160 million on EBIT. Those factors means that from a U.S. dollar alone, we are roughly three-quarters of a percentage points impacted on the EBIT margin. Then you have the Chinese yuan and some emerging market currencies on top of that, and you get to the one percentage points of impact on the EBIT margin. Then I'll just remind you also that some of that comes back on the net finance, where you see the benefit of our currency hedging. If you look at our balance sheet, you can see that we have more than DKK 100 million of assets in our hedging contracts there, and therefore also our guidance on net financials is a minus DKK 50 million, where we then see the impact. You get a vast majority of that back on net finance, what we lost on the U.S. dollar. Well, I guess it would just be easier just to give us the split out on the impact on the top line, how much is FX and how much is the M&A. I think I can, of course, do the calculations, but it would be easier if you have the numbers. On the top line, it's roughly three percentage points of negative currency and +2% or so on M&A. That +2% comes from the DKK 250 million or so of base that we also shared with you in December when we announced the acquisition of Microbiome Labs. Then it's roughly DKK 100 million of baseline from PrecisionBiotics Group, where half of that, of course, helped us in 2020. That's how those are compounded. We were also transparent last year when we announced the acquisitions that each of them will impact the EBIT margin negatively by roughly half a percentage point. There you have your one percentage points of negative EBIT margin. We have tried to be transparent along the way, and I think you can calculate those effects from what we have said over the years. On the midterm guidance, as we also said, this year, we sort of embraced the uncertainty related to the pandemic situation with a broader guidance of 2%-6%. You can say the speed of the recovery is sort of what determines to what extent we will be sort of at the upper or lower end or at the midpoint. We have made some assumptions that brings us to the midpoint, but of course, we are only trying to make our assumptions around the speed. Obviously if the pandemic goes on for a long time, and the effect is lasting through 2020, and we see a recovery, or rather 2021, sorry, and we see a recovery in 2022, then obviously, that makes it easier for us to deliver stronger growth in 2022. When we announced the long-term financial targets in 2019, we said we were targeting 5%+ in each year, and 2020 would probably be impacted by portfolio changes. That's how we communicated in the summer of 2019. Yeah, it was more the concept of how it's defined, whether you hit the targets. If you do zero in 2020, let's say theoretically, you did zero in 2021 and then you did six in 2022, would that be defined as meeting the targets? We are targeting. When you do six in 2022. We are targeting, Michael, five in each of the years, and that's what we believe we should deliver. Okay. That's what we consider success. We are just saying that in 2021, there is still a lot of uncertainty, and therefore we are guiding you 2%-6%. In that, you also see scenarios where the 5-plus percent is within reach. We are also aiming to deliver 5% on top of that in 2022. That's what we are aiming for, and that's why we are still holding firm on the long-term targets. Okay, perfect. Thank you. The next question comes from the line of Thomas Wrigglesworth from Citi. Please go ahead. Thanks, everybody, for the opportunity to ask questions. Just as a kind of a follow-up to that, more clarification, just on that 2%-6% range, can you give us what the kind of conditions to get you towards the higher end of the range would be when you've made that outlook? Secondly, you've noted in Grain that you expect to grow. Does that include the Chinese sugar business, which obviously is seeing very significant margin pressure at this point? Could you unpack what you expect Vegetable Oil Processing to do relative to that sugar, the corn sugar processing business within that guidance? Thank you. Yep. I'll take the question on the range and then pass it to Tina. The range of 2.6% as from 2%-6% as Lars Green described, it embraces both us moving ahead firmly on the areas that are fully in our control and that we set as the foundations of our aspiration, and also embracing the volatility or the uncertainty that COVID-19, that's still present in each of us. It's also true that we have provided ranges from the individual segments that they put the granularity on where we see the growth to become in a stronger phase. In Household Care, we're aiming low single-digit, coupled with a strong growth of 5% that we had in 2020. In Food and Health, we are on the space or aiming mid-single-digit growth. In Bioenergy, a mid to higher single digit, aiming for a recovery of bioethanol in U.S., but also the continued penetration in emerging geographies. The faster that recovery, the higher the space of growth that we will all be. As we said also before, if we show something in 2020, it was our capability to react and to respond to the market when the demand picks up. BioAg and Animal Health, we are on the flat to low single digit with a double digit, with a strong growth that we're aiming in BioAg, coupled with a higher level of uncertainty in the value chain, specifically in Animal Health, in Animal Nutrition, in the Nutrition segment, with continued growth on innovation and in the health aspect. Then Grain and Tech, here we're aiming on the mid-single digit with Technical recovering, specifically the textile industry, from it was a low end or the lows in 2020. We saw the recovery already in Q4, and that trend we're aiming to continue to be that. Again, the faster, the faster our growth. While also the penetration of solutions in processing oils as a main driver of the growth in Grain. Overall, a robust portfolio that set us equipped to be on the growth, then with the midterm of four, and now with the full alignment of the team to make it as high as possible, embracing that the world that we live it is uncertain and volatile. Tina, I'll pass it to you. Yeah. On the Grain side and specifically on China and what is happening there. As of now, you could say the solutions we are having in the Grain space is in fact three areas. It is Starch & Distilling, which we expect to be flattish. We have Grain Milling, where we expect strong growth, and then we have some Oil Processing, which is, for example, our degumming, and some oleochemical solutions we are having, and there we expect also very strong growth. That also goes for our business in China. Overall, on Starch and the part of grain there, we are both having the grain processing set up, and then we have the sweetener business. On the sweetener business right now in China, we are still seeing support for our solutions compared to sugar. Okay. That's helpful. Thank you, guys. The next question comes from the line of Lars Topholm from Carnegie. Please go ahead. Yes, a couple of questions from my side. I was quite impressed by the 18 product launches in 2020. Is this a function of changes to how you do R&D, and can you comment on how these product launches are expected to contribute to sales in 2021 and beyond? Secondly, on the freshness platform and the bigger rollout there, can you comment on how that is expected to contribute to the low single-digit growth you guide for household care for the full year, and maybe also give some details on what it means? I assume it means rollout in the U.S. I just had a very quick household question on the long-term target. When your margin target of 28% was at constant currencies, given the currency situation today, does that mean your target currency adjusted is now at 27% margin for 2022? Thank you. Thank you. We're also very proud of the penetration of our innovation and the traction we're getting in the market in a time that, if anything, it could be reasons to provide excuses to delay the launches. Those 18 launches are going to contribute on the commitment that we shared briefly a few minutes ago. It was on the 30% of our total revenue to be coming from solutions that they are less than five years old. Those launches, together with the ones of the past, they are both enabling the foundation of continuous housekeeping market, but also drivers of future growth, leading in total to 30% of the total revenue and also a solid contributor of the profitability of Novozymes. Now with that, I'll pass it to you, Anders, for commenting deeper on freshness. Thanks a lot for the question, Lars. Let me start with the low single-digit, because of course that's built in with our freshness assumptions. We delivered a very strong 2020, and it's on that basis that we are guiding for 2021. In that light, I think it's important to stress that we delivered probably to the tune of 2 percentage points better in 2020, and we see there's a substantial risk that some of that growth will not come, and that will reverse in 2021, especially relating to the first half, and again in March and April, where we saw a very significant spike we've seen, especially laundry, normalize through the year. We see 20 and 2021 in combination, and that will give our household care business to a growth level of 3%-4%. Now coming to freshness, we don't disclose specifically what the growth contribution is from freshness. I will say that we will have a slower year in 2021 when it comes to growth and freshness than we had in 2020. That was part of the plan. We knew that this would not be a straight line. We knew that this would be relating to new product introductions. To watch out for in terms of freshness, we are bringing broad market solutions in the powder space mid-year in 2021. Of course, there's a sales cycle, so it will not contribute substantially in 2021. That will take effect in 2022 and 2023. Then to your last point on U.S., we do not disclose exclusive collaborations and where we are launching technology with our innovation partners. I hope that clarifies. Sure. Thanks. And the last. On the midterm margin. Yes, on the last question, Lars, our guidance is 28%, assuming the U.S. dollar rate we had back in June of 2019. Obviously we can't change the guidance with the change in the spot rate of the US dollar, which was around 650 or so back then. Therefore, that is how we guide, and obviously if we have a spot rate that's at the current level, then it will be roughly one percentage points harder to get there, and the underlying margin would then be what we live up to. We stick to our guidance to say 28% EBIT margin, assuming the spot rates we had back in June, and then you make your calculations of the currency developments since then. You can just buy a lot of dollars last, and it will get back to $650. Thank you for answering my questions. You are welcome. Our thanks to you. Next question comes from the line of Sylvie Cook from J.P. Morgan. Please go ahead. Hi, how are you? Very well. Pleased to be here. Hi, Doris. I have three questions. How long would it take to get a biopesticide product to the market in your collaboration with FMC? Are those one-year projects, two-year projects? How do you measure them? The product opportunities, DKK 100 million per product, or are they smaller or larger? My second question is whether you can speak about your partnership with Givaudan. Are there product or revenue targets that you That you plan to achieve over a two or three-year period, and I was wondering whether you can just talk about that. Thanks very much. Thank you. I'll let Tina and Anders answer both on Ag and Givaudan. Maybe one holistic comment overall is the embracement of partnerships as an enabler of bringing our solutions faster and closer to the market, and also getting closer to the market and to the consumer needs. Then translating those ones into answers with what we know, what to do the most, which is master science and innovation. Tina? Let us talk a bit about the biocontrol segment and the replacement of pesticides. It was not an area which was much in focus during our collaboration and our partnership and our alliance with Monsanto. However, we have for quite some time had a product, have been selling products into it, and we have supplemented it with the Taegro launch this year together with Syngenta. That's a microbe, and it's attacking a certain fungal infection in fields. Now, what we are doing now with the FMC collaboration is that we are targeting a new area, and we're using a new technology. This is the first time where we are announcing a collaboration on enzymes for use in the biocontrol space. Here we have two specific targets in mind, a combination with a chemical, the diamides, and then also as a standalone product, which is targeting another fungal infection in fields, in this case in soy. It takes time to get to the market with new solutions, so we expect that is going to take 5+ years. As I started by saying, we have already solutions in the area, for example, our collaboration with Syngenta and with the Taegro launch. Over to Anders on Givaudan. Thanks for the question on Givaudan. Let me start with just a little bit of the rationale for why we have made this partnership. We operate in very similar businesses, Givaudan and Novozymes, in household care and food and beverages, and we are considering both our technologies as highly differentiating for the end products that we are serving. Both of the ingredients that we deliver are high-value ingredients. We think that there is a significant value in collaborating with a company like Givaudan. If you are to move into that space, we believe that there is no better partner than Givaudan, being the largest in the areas they operate. Now, specifically to the question, we don't have a specific revenue target set yet. We are exploring a number of different innovation avenues, and we are expecting to file IP during the year of 2021. Of course, as we start to file IP, we also start to get a better feel for what's the value of the partnership. Give us a little bit of time, and we'll come back to more clarity on how we will move this partnership forward. I think we have started off on a good track, and I also will finish off by saying that a lot of our customers are quite excited about working together with Novozymes and Givaudan in a three-way collaboration. We will move to the very last question, please. Last question comes from the line of Sebastian Bray from Berenberg. Please go ahead. Good morning. Thank you for taking my questions. I would have two, please. The first is on the definition of midterm within midterm targets, and this is given in the slides as 2020 to 2022. I have the feeling that the targets have been rather overtaken by events since they were set. Is it reasonable to think of Novozymes as a 5%+ organic growth company post-2022? What is your own view on the achievable mid to long-term rates of organic growth? My second question is a more conceptual one. There were seemingly breakthroughs made last year by DeepMind and Google as far as protein folding is concerned, and one of the big features of the competitive moat at Novozymes has been the data library gleaned through decades of experiments on how proteins fold. Is there any risk of the barriers to entry being lowered in the industry as a result of this breakthrough? I'll answer briefly your first question, conscious of time, and then I'll pass it to Claus for the second question. The answer is absolutely yes. We are a growing company, and we are extremely confident on our capability to be on the growth trajectory of 5%+ for 2021, 2022, and beyond. What makes us firmly believe that that's the case, it is not only the strength of our innovation pipeline, and strengthening, bringing our commercial organization with the latest changes organization, but if anything, the continuous pull and momentum we see for sustainable solutions across all segments. We see that in the detergents with a stronger appreciation for the consumers and our customers of biodegradable solutions. We see it in Ag. We just saw many questions today in the call on the need on alternatives that will replace pesticides. We see it on the increased level of health and awareness of health from the consumers, we're investing the acquisitions we make in human health makes us stronger to be able to capitalize on such a growing market. Across all over the areas, in all the markets we present, our solution, they provide answers to growing demand needs. That puts us naturally as a 5% growing company. Claus? Thank you, Sebastian, for a scientific question here at the end. It is exciting innovations from Google. It simply bridges the, let's say, the sequence understanding of a protein into a structure. Being able to predict, you could say, functionality. This is something that you would normally take X-ray crystallography and something else like that to study. It takes time out of discovery. Now, it doesn't tell, except for function, much about how it will work in application and whether you can at all scale and produce such a protein. It helps accelerate the discovery process, but nothing more, at least when it comes to Novozymes' use of these technologies. Thank you. Thanks for taking my questions. Thank you all for your questions and dialogue. Looking forward to continue the conversation with many of you in the next forthcoming days. Wishing you a very nice day.