Novonesis A/s Class B · OMXCOP:NSIS_B
Novonesis A/s Class B — Non-Deal Roadshow (2024)
56 slides from Novonesis A/s Class B's roadshow presentation, 2024
Slide 1: 9M 2024 Roadshow Presentation
9M 2024 Roadshow Presentation
Slide 2: Disclaimer on forward looking statement
Disclaimer on forward looking statement This presentation includes forward-looking statements. Such forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the control of the combined group and all of which are based on the combined group's current bel
Slide 3: 9M organic sales growth of 9% (11% in Q3)
9M organic sales growth of 9% (11% in Q3). 2024 organic Sales and organic sales growth y/y 45% 55% sales growth now expected at upper end of 7-8% range Food & Health Biosolutions Planetary Health EURm Biosolutions Sales performance 9M 2024 • Organic sales growth (OSG) of 9% +9% • Growth driven by vo
Slide 4: Food & Health Biosolutions
Human Health Sales and organic sales growth, 26% Food & Health Biosolutions y/y Food & Health Biosolutions 74% EURm +8% Food & Beverages OSG Sales performance 9M 2024 • Organic sales growth of 8% +11% OSG • Growth supported by both Food & Beverages and Human 1,296.1 1,337.1 Health 436.4 461.6 9M 202
Slide 5: Food & Health Biosolutions: Food & Beverages
Sales and organic sales growth Food & Health Biosolutions: Food & Beverages y/y Food & Beverages EURm +9% OSG Sales performance 9M 2024 +11% • Organic sales growth of 9% OSG 960.7 991.5 • Strong performance in Dairy and solid development in Baking • Innovation and penetration key drivers of growth 3
Slide 6: Food & Health Biosolutions: Human Health
Sales and organic sales growth Human Health y/y Food & Health Biosolutions: Human Health EURm +3% OSG Sales performance 9M 2024 +11% • Organic sales growth of 3% OSG 335.4 345.6 • Strong sales of Advanced Protein Solution to anchor customer • Growth impacted by strong comparable and timing in HMO an
Slide 7: Planetary Health Biosolutions
Household Care Sales and organic sales growth 35% Planetary Health Biosolutions y/y Planetary Health Biosolutions 65% EURm Agriculture, +9% Energy & Tech OSG Sales performance 9M 2024 • Organic sales growth of 9% +12% OSG • Growth driven by Household Care, supported by Agriculture, 1,505.1 1,627.0 E
Slide 8: Planetary Health Biosolutions: Household Care
Sales and organic sales growth Household Care y/y Planetary Health Biosolutions: Household Care EURm Sales performance 9M 2024 +15% OSG • Organic growth of 15%, with double-digit growth across all +13% regions driven by increased penetration, innovation, and OSG pricing, supported by timing 507,9 57
Slide 9: Planetary Health Biosolutions: Agriculture, Energy & Tech
Sales and organic sales growth Agriculture, Energy & Tech y/y Planetary Health Biosolutions: Agriculture, Energy & Tech EURm +7% OSG Sales performance 9M 2024 • Organic growth of 7%, driven by double-digit growth in Energy, +12% OSG supported by solid growth in Tech 997.2 1,049.7 • Growth impacted b
Slide 10: Outlook 2024
Outlook 2024 • Organic sales growth now at upper end of 7-8% range, driven predominately by volumes • Adjusted EBITDA margin confirmed between 35.5-36.5% Outlook 2024¹ Organic sales growth at upper end of 7-8% Adjusted EBITDA margin 35.5-36.5% For modeling purposes: Special items* EURm ~190* Net fin
Slide 11: Summary
Summary • Strong broad-based 9M performance • H2 growth acceleration vs. H1 including positive timing in Q3 • Full-year organic sales growth outlook at upper end of range • Strong traction on integration activities including cost synergies • Sales synergies confirmed to materialize from 2025 and onw
Slide 12: The era of Biosolutions
of : _ Bi solutions™ . “y} (uy uh
Slide 13: Our biosolutions are already transforming the way we all produce, consume and live
Our biosolutions are already transforming the way we all produce, consume and live A biosolution solves a problem using biology. Thanks to biosolutions, we can … … reduce food … secure more … save millions … help people … make clothes waste by food for a of tons of CO2 live healthier for look new an
Slide 14: Novonesis is already present in your everyday life
Novonesis is already present in your everyday life – our products are used by more than half the world's population 14
Slide 15: The era of Biosolutions is still in its early stages offering significant potential
The era of Biosolutions is still in its early stages offering significant potential Specialty Following GDP growth chemicals & ingredients market ~1 trillion EUR Existing Biosolutions market ~20 billion EUR relevant for Novonesis Today Future 15 Note: Not end market value Source: American Chemistry
Slide 16: Fundamental growth drivers create strong pull for Biosolutions
Fundamental growth drivers create strong pull for Biosolutions …driving higher demand for Clean Sustainable Growing label agriculture Increasing population energy needs Sustainable Reduced fuels food waste Improved water Alternative protein and land use sources Evolving nutritional Climate risks & h
Slide 17: Biosolutions address global challenges
Biosolutions address global challenges Novonesis Biosolutions 46% 54% supporting supporting a healthier lives healthier planet …with +80% of sales documented and aligned to six United Nation's Sustainable Development Goals (SDG) 17
Slide 18: We better our world with biology and drive business performance
We better our world with biology and drive business performance Sustainability is our business Biosolutions can reduce CO2 emissions by up to 4.3 billion tonnes, equivalent to 8% of total global CO2 emissions Bioprotection Bioenergy Biosolutions Biosolutions for prevented supported the global deterg
Slide 19: Non-financial agenda with clear targets and ambitions
Non-financial agenda with clear targets and ambitions Planet People Climate Water Circularity Work safety Gender diversity Absolute GHG reduction of 63% since 2018 GHG scopes 1 + 2 Improve freshwater Maintain 100% Circular <1.5 LTIF (lost time reduce by 65% vs 2018 withdrawal by saving & Biomass inj
Slide 20: Combining world-class Biosolutions capabilities into a superior powerhouse
Combining world-class Biosolutions capabilities into a superior powerhouse across the full value chain Scale up and production Strong customer Broad of robust and relationships and Biosolutions affordable understanding of toolbox and Biosolutions customer needs capabilities Pure play with unmatched
Slide 21: Resilient end market exposure leveraging complementary fermentation and innovation technologies
Resilient end market exposure leveraging complementary fermentation and innovation technologies Food & Health Food & Beverages Precision fermentation Biosolutions ~34% of sales of Biosolutions Enabling healthier Key solutions lives Human Health Enzymes Probiotics 46% ~12% of sales Proteins Yeast Pla
Slide 22: Unmatched scale in Biosolutions R&D
Unmatched scale in Biosolutions R&D ~400 million EUR annual R&D investment ~2,000 Biosolutions R&D experts +10 years average tenure ~40 R&D & application centres +10,000 patents 22
Slide 23: Mastering the engineering of biology and fermentation
Mastering the engineering of biology and fermentation Engineering strains… …which we scale up … before extracting the x200,000,000 through Biosolution solving a fermentation… customer need Fungi, yeasts or bacteria Adding strain specific tailormade Enzymes, proteins or the microbe specifically engin
Slide 24: Delivering a wide array of Biosolutions
Delivering a wide array of Biosolutions Leveraging Enzymes Vitamins Polymers output from the Proteins Metabolites Biochemicals production- Sugars and Fuels Fats microorganism Fibers (HMO) Leveraging the Yeast Probiotics microorganism itself Food cultures Postbiotics 24
Slide 25: Increasing the value of the combined innovation pipeline
Increasing the value of the combined innovation pipeline R&D allocation Late-stage innovation pipeline (# of projects) Future long-term projects will Technology ~200 ? development come from ~180 ~20 Optimization Leveraging Combined Resources Our strain database and New production expertise catalyze
Slide 26: Unmatched scale and position in Biosolutions production
Unmatched scale and position in Biosolutions production Largest producer of Biosolutions #1 producer of enzymes #1 producer of cultures #1 producer of probiotics Proven ability to Capability to produce Multi-purpose Fast scale up of optimize and deliver current and novel facilities with full innovat
Slide 27: Global production and supply chain set-up
Global production and supply chain set-up with unmatched scale, supply reliability and cost leadership +100,000 orders in 2023 Production sites of orders shipped Supply chain +97% on time in 2023 72 net promoter score production sites across +30 four continents customer service/ +35 distribution cen
Slide 28: Capturing and accelerating organic sales growth
Capturing and accelerating organic sales growth 6-8% organic CAGR through 2025… … and ambition to further accelerate beyond New Explorative Adjacencies & growth upselling + opportunities Applications and 2-3% solutions Market growth, Penetration share & pricing 3-4% ~1% Explorative Market growth, Ad
Slide 29: Ambition to accelerate organic sales growth beyond 2025
Ambition to accelerate organic sales growth beyond 2025 Further Expectation of… acceleration 6-8% • 6-8% organic sales growth CAGR through 2025 • Food & Health Biosolutions expected Driven by Driven by to grow faster than Planetary Health 1 Volume 1 Volume Biosolutions 2 Price 2 Synergies • Ambition
Slide 30: Clear capital allocation priorities
Clear capital allocation priorities Strong balance sheet Investing for growth 1 People, innovation and capacity Leverage ratio NIBD/EBITDA1 We will not 1.7x Could temporarily Acquisitions • Expand outside our core go higher if 2 Complementary value-adding acquisitions capabilities • Pursue short-ter
Slide 31: There's a Biosolution for (almost) everything
There's a Biosolution for (almost) everything
Slide 32: Food & Beverages
Food & Beverages Share of Novonesis sales Food & Beverages 34% Other ~20% Baking ~20% Dairy ~60% Fundamental growth drivers Growing Increasing population energy needs Cheese Cheese Fresh FreshDairy Fresh Dairy Dairy Plant-based Plant-based Plant-based Meat, Meat,Plant-based Plant-based Dairy Dairy D
Slide 33: Biology toolbox delivering high strategic value to customers
Biology toolbox delivering high strategic value to customers Biosolution toolbox Delivering customer and consumer value Small cost with high strategic value Product impact Process impact Strategic value e.g. quality, productivity, Bacteria sustainability Yeast Better Health Improved Increase Raw tex
Slide 34: Proven strong position to outgrow end markets
Proven strong position to outgrow end markets New Explorative Market growth, Adjacencies & Adjacencies & Penetration growth share & pricing upselling upselling opportunities Applications and ++ solutions • End market • Conversion • Incremental volume growth across solutions applications • Value base
Slide 35: Unmatched customer understanding and relations
Unmatched customer understanding and relations Our commercial model ~1,000 food and beverage Biosolutions High customer provides experts and 27 application centers across the satisfaction a competitive advantage world NPS1 in 2023 Local and specialized direct sales force Technical, co-creation and a
Slide 36: Established growth platforms accelerating from combined strengths
Established growth platforms accelerating from combined strengths Bioprotection Functional Food Plant-based food Extended shelf-life and food waste Leveraging our strongholds to Stronger value proposition through management with clean label move into new application areas combination of enzymes and
Slide 37: Human Health
Human Health Share of Novonesis sales Human Health 12% Advanced Health ~25% & Nutrition Dietary ~75% supplements Fundamental growth drivers Evolving Gut health Infants & Female Immune & Growing Children health Protective nutritional & population health trends Mental Taste & Explorative health Textur
Slide 38: Execution power across a fully integrated value chain
Execution power across a fully integrated value chain through combined strengths B2B B2HCP B2C Consumer Science & Strain & Upscaling Fermentation Customization Finished good Go to market & customer Innovation product and formatting manufacturing channels understanding development Scientific, clinica
Slide 39: Well positioned in attractively growing health categories
Well positioned in attractively growing health categories Solid underlying …with focus on high market growth… growth health categories Dietary supplements & Probiotic supplements Market growth across health categories vitamins market market CAGR 2023-28 billion EUR billion EUR CAGR Infants & 15% 5%
Slide 40: Differentiated value proposition for customers through expertise across solutions and categories
Novonesis CMD 2024 Differentiated value proposition for customers through expertise across solutions and categories Categories Gastro- Infants & Women’s Immune & Taste & Explorative Solutions intestinal Children Health Protective Mental Texture areas Probiotics Spores Postbiotics Synbiotics Enzymes
Slide 41: Strengthening the building blocks to commercialize HMO
Novonesis CMD 2024 Strengthening the building blocks to commercialize HMO HMO are the third most abundant …and we are increasing penetration of …with significant growth potential for component in mother's milk… HMOs to bring infant formula closer to HMOs in the 50bn EUR infant formula mother's milk…
Slide 42: Household Care
Household Care Share of Novonesis sales Household Care 18% Professional & ~10% ~10% Medical Cleaning Dishwash Laundry ~80% Fundamental growth drivers Growing Increasing population energy needs Climate risks Laundry Dishwash Professional & Medical cleaning . 42
Slide 43: Stable end market growth with significant potential in emerging markets
Stable end market growth with significant potential in emerging markets Emerging market penetration Stable growth in global Significant potential in emerging drivers detergent volumes1 markets % CAGR DM EM Industrialization Historical market Detergent market size Detergent volume1 Enzyme penetration
Slide 44: Outgrowing global detergent market volume growth
Outgrowing global detergent market volume growth enabled through innovation and increased penetration New Market growth, Adjacencies & Explorative Penetration Adjacencies & share & pricing upselling growth upselling opportunities Applications and + solutions • End market • Emerging • Reformulation t
Slide 45: Inclusion of Biosolutions is a key enabler to drive value for customers
Inclusion of Biosolutions is a key enabler to drive value for customers while also replacing fossil-based ingredients Customer and consumer demands Lowering cost and enabling premiumization Better washing performance Fewer chemicals & lower energy use Convenience and compaction + + E.g. wash at low
Slide 46: Agriculture, Energy & Tech
Agriculture, Energy & Tech Share of Novonesis sales Agriculture, Energy & Tech 36% Tech ~20% Agriculture ~30% Energy ~50% Fundamental growth drivers Growing Increasing Animal Plant Biofuel Biodiesel population energy needs Climate risks Biomass Grain Bio- Oils & Fats processing processing . 46
Slide 47: Enabling greener and more efficient solutions for farms, factories and homes
Enabling greener and more efficient solutions for farms, factories and homes Farms Factories Homes Biosolutions to drive healthy Biosolutions to increase efficiency Biosolutions to enable families to growth in farms for animals and and energy output in factories, by take care of their homes and plan
Slide 48: Sustainable ecosystem from farm to fork is good for everyone
Sustainable ecosystem from farm to fork is good for everyone Sustainable farming Efficient food production Healthy & sustainable life-style Natural soil & Better quality Animal health Efficient Industrial Food quality Supporting Reducing Less water waste plant protection silage & nutrition productio
Slide 49: Strong growth potential for Biosolutions in plant and animal
Strong growth potential for Biosolutions in plant and animal Key drivers Global agricultural ingredient market Global biological ingredient agriculture market value, billion EUR market • 400 million more people by 2030 market value, billion EUR Plant Animal Plant Animal • Middle-class population inc
Slide 50: A broad complementary portfolio of Biosolutions across agriculture
A broad complementary portfolio of Biosolutions across agriculture Plant sales by crop Animal Plant Other, Soy Animal Animal Bio- (canola, peas, Silage Pet BioYield lentils, etc.) Nutrition Health Control Probiotics Corn Enzymes Animal sales by species Other Other Cattle Poultry Innovation focus Pre
Slide 51: Bioenergy market volumes expected to increase and diversify
Novonesis CMD 2024 Bioenergy market volumes expected to increase and diversify Regional starch-based fuel ethanol production volume estimates, BGY Market volumes growing in biomass ethanol & biodiesel +40% % Total growth Installed and planned biomass production in 1,8 MGY of ethanol 1,3 >250 ‘25 ‘30
Slide 52: Bioenergy expected to continue to outgrow underlying US ethanol volume growth
Bioenergy expected to continue to outgrow underlying US ethanol volume growth through innovation and diversification Novonesis bioenergy sales US ethanol production growth & Novonesis bioenergy sales growth diversification Other revenue streams US 1G ethanol US Ethanol YoY growth Novonesis bioenergy
Slide 53: Enabling customers to diversify and unlock value streams from cracking corn
Enabling customers to diversify and unlock value streams from cracking corn Future streams High ?% Enzymes + Enzymes Enzymes Yeast Yeast 5% Corn oil High 20% Protein Medium 5% Fiber ethanol High 70% Ethanol Low-medium Input of Conversion to Fermentation corn & starches fermentable sugars to ethanol
Slide 54: Future additional value streams adds optionality
Future additional value streams adds optionality Sustainable Corn oil Aviation Fuel Bio-derived High Value Chemicals Protein Protein (Ethylene, Ethyl Acetate, Ethanol Butadiene,…) Maritime fuel Existing value streams New value streams . 54
Slide 55: Technical processing presence across all steps of the value chain
Technical processing presence across all steps of the value chain driving productivity and sustainability improvements Origination Processing Consumer products Process Yield optimization Sustainabilit y Increasing demand for consumer products to accommodate Grain processing, oils & fats and bioproce
Slide 56: The era of Biosolutions is now
The era of Biosolutions is now 56