Novonesis A/s Class B · OMXCOP:NSIS_B
Novonesis A/s Class B — Novozymes — FY2019 Earnings Presentation
14 slides from Novonesis A/s Class B's earnings presentation, Jan 23, 2020
Slide 1: Conference call 12M 2019
Conference call 12M 2019 January 23, 2020 Rethink Tomorrow novozymes’ *
Slide 2: Highlights
Highlights Second-half improvement; unsatisfactory 2019 sales performance * Organic sales 12M y/y: -1%; Q4 y/y: +1% * Poor overall sales performance mainly due to difficult agricultural markets * Good second-half momentum in Household Care * Solid financials with reported EBIT margin of 28.1% (Q4: 2
Slide 3: Organic sales growth by geography
Organic sales growth by geography North America 12M y/y: 6% Q4 y/y: -8% 33% of sales Latin America 12M y/y: +5% Q4 y/y: +19% 10% of sales Developed 66% y/y 12M: -1% / Q4:-1% /y 12M: -1% / Q4: +5%| Europe, Middle East & Africa 37 % of sales 12M y/y: +3% Q4 y/y: +5% Q4 y/y: +1% Asia Pacific* Sia Pacit
Slide 4: Household Care
Household Care Good momentum continued in Q4 * Organic sales 12M y/y: +1%; Q4 y/y: +5% + Solid growth with local customers and in the emerging markets continued in Q4 + Performance throughout the year in line with expectations + Freshness rollout progressing as planned from both a commercial and inn
Slide 5: Food & Beverages
Food & Beverages Difficult year; second half improvement * Organic sales 12M y/y: -1%; Q4 y/y: +2% * Growth in Q4 driven by food & nutrition, baking and brewing * Full year with positive result in food & nutrition and brewing offset by difficult conditions in starch processing * Growing demand for n
Slide 6: Bioenergy
Bioenergy Weak performance with a challenged US ethanol industry * Organic sales 12M y/y: -3%; Q4 y/y: +2% + Less decline in US ethanol production in Q4 y/y + US ethanol industry challenged by low producer margins, elevated inventories and severe weather conditions in the US Midwest * Yeast platform
Slide 7: Agriculture & Feed
Agriculture & Feed Challenged Ag-markets overshadowing growth from innovation * Organic sales 12M y/y: -5%; Q4 y/y: -9% * Q4 decline mainly due to weak farm economics and Latin American planting + BioAg sales declined mainly due to severe weather conditions in the US Midwest; corn inoculants perform
Slide 8: Year of change product launches
Year of change 20 product launches + Three new products launched in Q4, of which two for the broad market + Nine new broad market solutions and eleven tailored solutions in 2019: + Frontia® Jade; a new addition to our grain milling platform for the Chinese market + Innova® Force and Innova® Fit; rec
Slide 9: Sustainability and non-financial targets
Sustainability and non-financial targets 2022 targets Save CO, emissions by enabling low carbon fuels in the transport sector z 3 Reach people by providing laundry solutions that replace chemicals 5 Gain food by improving efficiency from farm to table Reduce absolute CO, emissions from operations" D
Slide 10: Financials
Financials Unsatisfactory sales performance despite second-half pickup * Organic sales 12M y/y: -1%; Q4 y/y: +1% * Full-year gross margin ~200bp below last year due to lower operational leverage, lower deferred income and restructuring effects * EBIT margin 12M: 28.1%; Q4: 29.6% * Q4 positively impa
Slide 11: Financials — 2020 outlook
Financials — 2020 outlook Organic sales growth of 1-5% with higher underlying EBIT margin and cash flow + 1-5% organic sales growth + Outlook range reflects higher uncertainty to the more agriculturally-exposed of the 5 business areas + EBIT margin of ~27% compared to ~26% underlying in 2019 + Net i
Slide 12: Summary
Summary Second-half improvement; unsatisfactory 2019 sales performance. Stronger performance expected in 2020 * Volatile ag-exposed businesses were heavily impacted by severe weather conditions in the US Midwest + Stronger performance expected in 2020, driven by innovation, stronger commercial prese
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: y = & ®
y = & ® novozymes'