Novonesis A/s Class B · OMXCOP:NSIS_B
Novonesis A/s Class B — Novozymes — FY2017 Earnings Presentation
15 slides from Novonesis A/s Class B's earnings presentation, Feb 7, 2018
Slide 1: Novozymes Conference Call 12M 2017
Novozymes Conference Call 12M 2017 February 7, 2018
Slide 2: Good momentum
Good momentum Solid progress on strategic priorities • Increased focus on high-growth opportunities and markets • More impactful innovation • Stronger connections between research, marketing and sales across industries and geographies Accelerating growth • Divisional structure works. More focused or
Slide 3: Highlights
Highlights Solid 2017 performance • Organic sales growth +4% (Q4: +4%) 2017 organic sales growth by segment • 4 out of 5 segments with organic growth ‒ diversity gives robustness: 11% • Household Care +1% (Q4: -3%) 9% • Food & Beverages +9% (Q4: +9%) • Bioenergy +11% (Q4: +14%) 2% 1% • Agriculture &
Slide 4: Organic sales growth by geography
Organic sales growth by geography +2% +4% Q4 y/y 12M y/y +3% +6% +12% Q4 y/y 36% +5% Q4 y/y 12M y/y of sales 12M y/y 34% 20% of sales of sales -11% -1% Q4 y/y 12M y/y 10% +3% 12M y/y 35% Emerging markets +5% of sales 12M y/y 65% Developed markets -1% +7% Q4 y/y Q4 y/y 4
Slide 5: Household Care
Household Care 32% of sales Modest sales growth in 2017. Q4 declined as expected Full-year organic sales growth • Organic growth y/y: 2017 +1%. Q4 -3% 9% • North America and Europe up for the year • Europe benefits from good dishwash enzyme sales growth 4% • Enzyme volume reductions by some large gl
Slide 6: Introducing our freshness & hygiene platform
Introducing our freshness & hygiene platform Current consumer challenges in laundry Trends increasing the need for freshness and hygiene Consumers turning to liquid detergents Yellow armpits, grime on Sweat and odor in Malodor issues in cuffs and collars sportswear washing machines Growth in use of
Slide 7: Food & Beverages
Food & Beverages 28% of sales Strong 2017 performance supported by continued good Full-year organic sales growth momentum in Q4 9% • Organic growth y/y: 2017 +9%. Q4 +9% • Solid growth across most platforms and regions; nutrition performed well with 5% increased uptake of innovation. Starch performe
Slide 8: Bioenergy
Bioenergy 18% of sales Good growth in enzymes for conventional biofuels Full-year organic sales growth 19% • Organic growth y/y: 12M +11%. Q4 +14% • US ethanol production estimated to be up 2-3% in 2017 and Q4. US ethanol 12% 11% inventories remain elevated • Growth in conventional biofuels driven a
Slide 9: Agriculture & Feed
Agriculture & Feed 15% of sales 2017 impacted by weak farm economics Full-year organic sales growth • Organic growth y/y: 12M -3%. Q4 -7% • Pick-up in Q4 demand slow, as farmers expect continued tough conditions. 19% • Feed enzyme sales soft due to weak end-market demand • Animal health continues go
Slide 10: Priority innovation platforms
Priority innovation platforms Arrows denote progress to next phase over the past 12 months 10
Slide 11: Introducing "Solutions for water" as a new platform
Introducing “Solutions for water” as a new platform • The world treats an estimated 200 billion m3 of wastewater on an annual basis • Solving the world’s water problems is a monumental challenge for society • Sustainable Development Goal #6: Clean Water and Sanitation • HelloScience established as a
Slide 12: 2017 performance; 2018 outlook
2017 performance; 2018 outlook Solid performance • 4 out of 5 segments growing Key financials Realized Outlook (DKKm) 2017 2018 • Agriculture & Feed weak in Q4 Organic sales • Emerging-market investments increasing to support growth 4% 4-6% growth • EBIT margin solid at 27.9%. ~29% excluding one-tim
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
Slide 14: Summary
Summary Good momentum Accelerating growth Innovation is key. Faster commercialization Capital Market Days 2018 Save the date: September 17-18, Raleigh, NC 14
Slide 15: 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