Novonesis A/s Class B · OMXCOP:NSIS_B
Novonesis A/s Class B — Novozymes — 1H 2018 Earnings Presentation
13 slides from Novonesis A/s Class B's earnings presentation, Aug 10, 2018
Slide 1: Novozymes Conference Call 1H 2018
Novozymes Conference Call 1H 2018 August 10, 2018
Slide 2: Highlights
Highlights Distribution of sales and organic growth, 1H y/y Satisfactory first half with 4% organic sales growth -6% • Organic sales growth +4% (Q2: +5%) 6% +3% • Household Care -1% (Q2: -2%) 14% -1% 32% • Food & Beverages +4% (Q2: +4%) • Bioenergy +14% (Q2: +20%) 19% • Agriculture & Feed +3% (Q2: +
Slide 3: Organic sales growth by geography
Organic sales growth by geography -1% 1H y/y +6% 1H y/y 37% of sales +7% 33% 1H y/y of sales 21% of sales +7% 1H y/y 9% +7% 35% Emerging markets of sales 1H y/y 65% Developed markets +2% 1H y/y 3
Slide 4: Household Care
Household Care 32% of sales Sales softer than expected in Q2 1H y/y organic sales growth • Organic growth 1H 2018 y/y -1%; Q2 2018 y/y -2% 5% 4% • Mixed performance in laundry; soft developed markets, good development in emerging markets from local customers • Q2 impacted by customers’ region-specif
Slide 5: Food & Beverages
Food & Beverages 29% of sales Broad-based performance in the first half 1H y/y organic sales growth • Organic growth 1H 2018 y/y +4%; Q2 2018 y/y +4% 8% • Nutrition performed well, supported by our Saphera® product for lactose reduction in dairy 5% 5% 4% • Starch delivered growth across markets, alt
Slide 6: Bioenergy
Bioenergy 19% of sales Strong growth momentum in conventional biofuels 1H y/y organic sales growth • Organic growth 1H 2018 y/y +14%; Q2 2018 y/y +20% • US and global ethanol production estimated to be up 2-3% in Q2 y/y vs. 26% flat in Q1 y/y. Inventories remain elevated and producer margins tight 1
Slide 7: Agriculture & Feed
Agriculture & Feed 14% of sales Sales picking up in BioAg; Feed remains subdued due to 1H y/y organic sales growth challenging markets 19% • Organic growth 1H 2018 y/y +3%; Q2 2018 y/y +13% • BioAg sales strong in Q2; Acceleron® B-300/B-360 benefited Q2 sales due to preparation for the 2019 planting
Slide 8: R&D update
R&D update Animal Health & Nutrition BioAg New enzyme launch with DSM Acceleron® B-360 ST for corn • Novel enzyme improving digestion and • Promotes symbiosis between microbes and gut health in chickens corn plants to strengthen root systems and increase plants’ access to nutrients • Estimated in-ma
Slide 9: 1H 2018 financials
1H 2018 financials Satisfactory growth; solid earnings • Overall 1H organic sales growth roughly as expected at 4% Key financials Realized Realized (DKKm) 1H’18 1H’17 • 7% organic sales growth in emerging markets. Developed markets 2% driven by Household Care as a negative Organic sales 4% 3% growth
Slide 10: 2018 outlook
2018 outlook 2018 outlook maintained across parameters • Organic sales growth expectation of 4-6% with growth expected from Key financials Realized Outlook (DKKm) 1H’18 2018 all major segments • Negative impact from currencies on reported sales reduced to ~3% Organic sales 4% 4-6% growth from previo
Slide 11: Summary
Summary • On track to deliver 4-6% organic sales growth for 2018 • Focus on strategic priorities for 2018 and beyond • Significant and exciting innovation in Agriculture & Feed • First commercial product from freshness & hygiene technology on the shelves in the Philippines • Agenda for Capital Marke
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 2nd 48% 76 million More than 6,500 active and In 2017, Science Magazine Market leader in industrial In 2017, our customers pending patents ranked Novozymes the enzymes with an estimated avoided
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