Slide 1: Novozymes Conference Call 1H 2017
Novozymes Conference Call 1H 2017 August 11, 2017
Slide 2: Good first half and momentum in the business
1H 2017 Good first half and momentum in 1H y/y organic sales growth per segment Highlights the business • Organic sales growth +3% (Q2: 2%) 8% 7% • Large segments growing organically: 1% ‒ Household Care +1% (Q2: +1%) ‒ Food & Beverages +8% (Q2: +10%) ‒ Bioenergy +7% (Q2: +8%) -4% • Timing main nega
Slide 3: Focus on Growth
3 Focus on Growth • Innovation drives revenue and earnings growth • Solid pipeline, and strong launch environment with increased commercial activity • Innovation across enzyme classes and applications supported by significant IP positions • Cross-fertilization yields unique advantages –> size matter
Slide 4: Household Care
Household Care First half in line with expectations 1H y/y organic sales growth • Good development in Asia Pacific as liquid formulations continue good growth supported by enzyme innovation 33% • Latin America down for the quarter of sales • Developed detergent markets only post slight growth due to
Slide 5: Food & Beverages
Food & Beverages Strong performance through first half 1H y/y organic sales growth • Solid growth in baking outside the US freshkeeping market. Good growth in Europe, Middle East and Africa region in Q2 offsets the 28% effects of reduced pricing in North America of sales 8% • Nutrition strong also i
Slide 6: Bioenergy
Bioenergy US ethanol production supports solid growth in enzymes for 1H y/y organic sales growth conventional biofuels • US ethanol production estimated to be up by 4% in both Q2 and 18% 1H. US ethanol inventories remain elevated, and ethanol margins 26% of sales thin 7% • Rest of World conventional
Slide 7: Agriculture & Feed
Agriculture & Feed Timing affects half year and quarterly sales growth 1H y/y organic sales growth • Feed enzymes sales lower in Q2 as expected, due to inventory 14% building in Q1. In-market sales growing in 1H y/y 19% of sales • Probiotics growing from a small base. Trials progressing as 13% plann
Slide 8: Innovation top of the agenda with four new launches
Medley® 2.0 – Emerging market innovation which combine enzyme solutions Innovation top of Enzyme solutions enabling better wash performance to small and medium-sized producers in emerging the agenda with markets four new launches in Q2 Progress® excel – new protease for liquid detergents Premium pro
Slide 9: Progress in pipeline
Progress in pipeline During Q2 2017 both the grain-milling and vegetable oil-processing program moved from the “Development” to the “Launch” stage Total pipeline has: Area Innovation Feasibility Discovery Development Launch Commercial 8 programs with significant market- Household Care Hygiene soluti
Slide 10: 1H performance and 2017 outlook
1H performance and 2017 outlook 1H 2017: Good half-year performance Key financials Realized 2017 outlook • Growth in the large segments: Household Care, (DKKm) 1H 2017 August 11 Food & Beverages, Bioenergy Organic sales growth +3% 2-5% • Agriculture & Feed impacted by timing • EBIT-margin excl. one-
Slide 11: 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
Slide 12: Q&A
Q&A • Good first half and momentum in the business • Underlying outlook maintained • Exciting pipeline development, strong launch environment and increased commercial activity • Our business is about turning amazing science into sustainable biological answers in a growing world, and our focus is on