Rethink Tomorrow

Equity and shareholders' return

Consolidated statement of shareholders' equity

Shareholders' equity

At December 31, 2016, shareholders’ equity was DKK 11,745 million, up 1% from DKK 11,593 million at year-end 2015, as comprehensive income more than offset dividend payments and stock buyback in 2016. 


Equity ratio 

Shareholders’ equity represented 63% of the balance sheet total, down from 65% at year-end 2015. 


Return on equity

Return on equityThe return on equity ratio or ROE is a profitability ratio that measures firm’s ability to generate profits from its shareholders’ investments in the company. was 26.1%, up 1.4 percentage points from 24.7% in 2015. The increase was a result of higher net profit partly offset by an increase in equity.



The Board of Directors proposes that the Annual Shareholders' Meeting approve a dividend of DKK 4.00 per share for the 2016 financial year, an increase of 14% compared with 2015. This will result in an expected total dividend payment of approximately DKK 1,190 million, corresponding to a payout ratio of 39.0%.  


Treasury stock 

At December 31, 2016, the holding of treasury stock was 12.4 million B shares, equivalent to 4.0% of the common stock. 


Stock buyback program

In 2016, Novozymes bought back 6.8 million B shares with a transaction value of DKK 2,000 million under the stock buyback program initiated on February 15, 2016, and completed on November 15, 2016. The shares acquired within the program will be used to reduce the common stock and to meet obligations arising from employee share-based incentive programs. 


Movements in equity 2016
DKK million
Payout ratio and dividend growth
  • Payout ratio
  • Dividend growth
Shareholder return
DKK million * Dividend for 2016 is proposed dividend.
  • Stock buyback program
  • Dividend


Consolidated statement of shareholders' equity

  Attributable to shareholders in the company  
DKK millionCommon stockCurrency translation adjustmentsCash flow     hedgesRetained     earningsTotalNon-controlling interestsTotal equity
Shareholders' equity at January 1, 20166265382010,39611,5801311,593
Net profit for the year3,0503,050-3,050
Other comprehensive income for the year132(61)7171
Total comprehensive income for the year-132(61)3,0503,121-3,121
Purchase of treasury stock(2,000)(2,000) (2,000)
Sale of treasury stock6969 69
Write-down of common stock(6)6--
Stock-based payment    136136 136
Tax related to equity items    (113)(113) (113)
Changes in shareholders' equity(6)132(61)87152-152
Shareholders' equity at December 31, 2016B/S620670(41)10,48311,7321311,745
Shareholders' equity at January 1, 2015639431(10)10,20911,2691111,280
Net profit for the year2,8232,82322,825
Other comprehensive income for the year10730-137-137
Total comprehensive income for the year-107302,8232,96022,962
Purchase of treasury stock    (2,000)(2,000) (2,000)
Sale of treasury stock    126126 126
Write-down of common stock (13)  13- -
Dividend    (925)(925)(925)
Stock-based payment    101101 101
Tax related to equity items    4949 49
Changes in shareholders' equity (13)107301873112313
Shareholders' equity at December 31, 2015B/S6265382010,39611,5801311,593
The proposed dividend of DKK 1,190 million for 2016 is included in Retained earnings.