Slide 1: Conference call 1H 2019
Conference call 1H 2019 August 8, 2019
Slide 2: Highlights
Highlights Second-quarter improvement, but overall 1H’19 2019 Key financials Realized Outlook disappointing 1H performance. 2H Sales growth, organic -3% 1-3% acceleration confirmed. EBIT margin 30.0% 28-29% • Agriculture & Feed, Bioenergy and Food & Beverages Net profit growth 1% 3-8% negatively aff
Slide 3: Organic sales growth by geography
Organic sales growth by geography North America 34% of sales Europe, the Middle East & Africa 37% of sales 1H y/y: -4% 1H y/y: 1% Q2 y/y: -3% Q2 y/y: 0% Developed Emerging 67% (1H 2019: 0% y/y) 33% Latin America 9% of sales (1H 2019: -8% y/y) Asia Pacific* 20% of sales 1H y/y: -3% 1H y/y: -9% Q2 y/y
Slide 4: Household Care
Household Care 33% of sales First-half performance as expected • Organic sales growth of minus 2% y/y in 1H 2019 1H y/y organic sales growth • Weakness in the Middle East due to economic 4% distress • Continued trend of growth with regional customers 1% being offset by decline with global customers
Slide 5: Food & Beverages
Food & Beverages 29% of sales Weak start to the year • Organic sales growth of minus 2% y/y in 1H 2019 1H y/y organic sales growth • Baking down due to economic distress in the 8% Middle East and price declines in freshkeeping 5% 4% • Starch down due to wet weather in the US and Will be updated 3% h
Slide 6: Bioenergy
Bioenergy 19% of sales Market volatility impacts performance • Organic sales growth of minus 4% y/y in 1H 2019 1H y/y organic sales growth • Wet weather in the US Midwest and low producer 14% margins 7% • E15 approved for all-year sales but limited impact 2% in 2019 • Continued capacity expansion in
Slide 7: Agriculture & Feed
Agriculture & Feed 13% of sales Feed improving, BioAg impacted by wet weather in the US Midwest 1H y/y organic sales growth • Organic sales growth of minus 6% y/y in 1H 2019 19% • BioAg decline somewhat mitigated by improved Feed performance 1% 3% • Wet weather in the US Midwest negatively impacted
Slide 8: Eight new launches; three for the broad market
Eight new launches; three for the broad market Innova® Force Innova® Fit Fortiva® New enzymatic offering to Further expansion of the Next-generation yeast from meet demand for better yeast platform, enabling Novozymes yield and temperature penetration of Latin America robustness
Slide 9: Financials
Financials Financials as expected given weak top-line 1H’18 1H’19 performance Key financials Realized Realized Sales growth, organic 4% -3% • Organic sales growth of minus 3% y/y in 1H 2019 • US Midwest and emerging-market softness created headwinds, EBIT margin 28.1% 30.0% impacting Agriculture & F
Slide 10: Financials – 2019 outlook
Financials – 2019 outlook Full-year outlook maintained after June 6 update 1H’19 2019 Outlook Key financials Realized August 8* • Full-year outlook maintained on all parameters, with organic growth accelerating in second half Sales growth, organic -3% 1-3% • EBIT margin adjusted for one-offs expecte
Slide 11: Summary
Summary Better Second-quarter improvement, but disappointing 1H business performance. Acceleration expected in 2H with biology • Weaker-than-expected start to the year due to wet weather in the US Midwest and softness in some emerging markets – revised outlook issued on June 6 • Second-quarter perfo
Slide 12: Our business is about turning amazing science into sustainable biological answers
Our business is about turning amazing science into sustainable biological answers in a growing world 6,500 3rd 48% 88 million More than 6,500 active and Science Magazine ranked Market leader in industrial Our customers avoided an pending patents Novozymes the world’s enzymes with an estimated estima
Slide 13: Forward-looking statements
Forward-looking statements This 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 words such as, but not limited to, "bel