Slide 1: Conference call Q1 2019
Conference call Q1 2019 April 24, 2019
Slide 2: Highlights
Highlights Q1 weaker than expected due to US bioethanol Q1’19 2019 Key financials Realized Outlook • All segments roughly as expected, except for Bioenergy; declining US ethanol Sales growth, organic -4% 3-5% volumes were further impacted by the Midwest flooding • As expected, negative impacts from
Slide 3: Organic sales growth by geography
Organic sales growth by geography Europe, the Middle East & Africa North America 33% of sales 38% of sales Q1 y/y: -5% Q1 y/y: 3% Developed Emerging 68% (Q1 2019: 0% y/y) 32% 9% (Q1 2019: -10% y/y) Latin America Asia Pacific of sales 20% of sales Q1 y/y: -2% Q1 y/y: -13%* *incl. Iran 3
Slide 4: Household Care
Household Care 33% of sales Q1 as expected • Organic sales development Q1 2019 -3% y/y • Weakness in the Middle East due to economic Quarterly y/y organic sales growth distress and trade sanctions • Global customers’ cost optimization still negative but less than before 2% • Sales to regional custom
Slide 5: Food & Beverages
Food & Beverages 29% of sales Mixed performance – overall roughly as expected • Organic sales development Q1 2019 -2% y/y Quarterly y/y organic sales growth • Good growth in food & nutrition and beverages • Baking performed well in Europe and Asia Pacific but hampered by planned price reductions in
Slide 6: Bioenergy
Bioenergy 18% of sales Tougher-than-expected first quarter • Organic sales development Q1 2019 -8% y/y • Lower-than-expected US production volumes and Quarterly y/y organic sales growth floods impacting the Midwest in latter part of the quarter, and continuing into April • Estimated volume decline o
Slide 7: Agriculture & Feed
Agriculture & Feed 14% of sales Q1 roughly as expected • Organic sales development Q1 2019 -6% y/y • Good BioAg performance Quarterly y/y organic sales growth • Sales of feed enzymes remain challenged; market conditions in Latin America continue to be difficult and tough comps in China 13% • Alterio
Slide 8: Two new product launches
Two new product launches Frontia® Jade CTS500 New addition to the grain-milling platform New microbial product for soybean seeds Untaps extra value in corn by releasing more starch, fibers and protein Launched under the Novozymes–Bayer partnership Enables customers to improve their yield, capacity a
Slide 9: Financials – Q1 2019
Financials – Q1 2019 US bioethanol makes for a weaker start to the year Q1’18 Q1’19 than expected Key financials Realized Realized Sales growth, organic 2% -4% • Organic sales development -4% • Bioenergy below expectations; Household Care, Food & Beverages and EBIT margin 28.9% 25.7% Ag & Feed rough
Slide 10: Financials – 2019 outlook
Financials – 2019 outlook Full-year earnings outlook maintained after early-April 2019 2019 2019 upgrade. Narrowed sales growth guidance following outlook outlook outlook Key financials January 24 April 4 April 24* weakness in US bioethanol Sales growth, organic 3-6% 3-6% 3-5% • Organic sales growth
Slide 11: Summary
Summary First quarter weaker than expected due to US bioethanol • All segments roughly in line with internal estimates except for Bioenergy • As expected, negative impacts from the Middle East, feed enzymes and planned price reductions in US baking enzymes • Earnings roughly as expected 3-5% organic
Slide 12: 3rd ⅓ sales in EM
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 In 2018, Science Magazine Market leader in industrial In 2018, our customers avoided pending patents ranked Novozymes the world’s enzymes with an e
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