Slide 1: Conference Call Q1 2013
CONFERENCE CALL Q1 2013 April 25, 2013
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation and its related comments contain forward-looking statements, including financial expectations. Forward-looking statements are by their very nature associated with risks and uncertainties that may cause actual results to differ materially from expectations. The
Slide 3: Q1 2013 Summary
Q1 2013 Summary Q1 sales as expected Key financials Q1 2013 Q1 2012 • Q1 sales growth at low end of full-year guidance • Sales growth still expected to increase during 2013 Total sales, DKKm 2,845 2,734 Sales growth, DKK 4% - Solid profitability Sales growth, LCY 5% - • EBIT margin of 24.9% ‒ on par
Slide 4: Household Care Enzymes Sales
Household Care Enzymes Sales Q1 2013 sales: Household Care Enzymes Sales DKK +6%, LCY +7% • Q1 sales in line with expectations 4.2 50 Sales DKK LCY growth 40% • Main growth drivers remained in place: 3.780 4.0 00 3.7 50 35% • Increased enzyme penetration across tiers 3.325 3.5 00 3.151 to enhance de
Slide 5: Food & Beverages Enzymes Sales
Food & Beverages Enzymes Sales Q1 2013 sales: Food & Beverages Enzymes Sales DKK (2)%, LCY 0% • Good performance in enzyme sales for Sales DKK LCY growth starch conversion and healthy concepts 4.0 00 40% 3.7 50 • Baking enzyme sales were lower due to 3.5 00 35% 3.186 competitive pressure in freshkee
Slide 6: Bioenergy Enzymes Sales
Bioenergy Enzymes Sales Q1 2013 sales: Bioenergy Enzymes Sales DKK (8)%, LCY (7)% • The EIA Q1 estimate for ethanol production Sales DKK LCY growth 70% is a volume decline of 13-14% 2.5 00 2.2 50 • Roll-out of Novozymes Avantec® gaining 60% traction, partly offsetting the volume 2.0 00 47% 1.846 1.7
Slide 7: Feed & Other Technical Enzymes Sales
Feed & Other Technical Enzymes Sales Q1 2013 sales: Feed & Other Technical Enzymes Sales DKK +12%, LCY +13% • Animal feed enzyme sales were the main Sales DKK LCY growth 50% growth driver 2.0 00 • Continued growth in penetration of 1.7 50 40% RONOZYME® ProAct in emerging markets 1.449 and Europe 1.5
Slide 8: Enzyme Business Sales Overview
Enzyme Business Sales Overview Q1 2013 sales: Enzyme Business Sales DKK +2%, LCY +3% Q1 2012 – Q1 2013 • 2013 sales started slowly as expected • Growth expected to pick up over the next 3 29 quarters, as new innovation penetrates the 64 market • All enzyme sales areas expected to contribute to growt
Slide 9: BioBusiness Sales Overview
BioBusiness Sales Overview Q1 2013 sales: BioBusiness Sales DKK +23%, LCY +24%, organic +22% Q1 2012 – Q1 2013 Microorganisms 2 (2) • Q1 2013 sales: DKK +23%, LCY +24% 11 – acquisition impact: +3% 67 Biopharma • Strong organic sales growth driven by BioAg sales 9 across the Northern Hemisphere and t
Slide 10: BioBusiness Activity Update
BioBusiness Activity Update Organizational changes in BioBusiness The ambition remains to be an incubator for growth platforms, but now across technology platforms: - Biomass conversion - Biopharma - BioAg - Animal Health & Nutrition - Other growth platforms 10
Slide 11: R&D Update
R&D Update R&D organizational changes Optimizing to bring innovation to market faster and with more impact Organizing to cater for core business, growth platforms and productivity improvements R&D resource allocation expected to remain at 13-14% of sales 11
Slide 12: Supply Operations Update
Supply Operations Update Supply Operations organizational changes One organization to drive supply of product and productivity improvements across technologies and regions The new enzyme plant in Nebraska will ramp up during 2013 The Hyaluronic Acid (HA) plant is ready, once customer trialing
Slide 13: Q1 2013 Financial Performance
Q1 2013 Financial Performance DKKm Q1 2013 Q1 2012 change Sales 2,845 2,734 +4% Gross profit 1,655 1,578 +5% Gross margin 58.2% 57.7% EBIT 709 680 +4% EBIT margin 24.9% 24.9% Net profit 514 510 +1% EPS (diluted) 1.62 1.59 +2% Operating cash flow 260 614 (58)% Net investments excl. acq. 178 158 13% F
Slide 14: 2013 Financial Outlook
2013 Financial Outlook Key financials 25.04.2013 21.01.2013 2012 Sales, DKKm - - 11,234 Sales growth, DKK 5-8% 4-7% 7% Sales growth, LCY 5-8% 5-8% 3% Sales growth, organic 5-8% 5-8% 4% EBIT, DKKm - - 2,745 EBIT growth 4-7% 4-7% 17% EBIT margin ~24% ~24% 24.4% Net profit - - 2,016 Net profit growth 6
Slide 15: Novozymes - Rethink Tomorrow
novozymes’ Rethink Tomorrow