Novonesis A/s Class B · OMXCOP:NSIS_B
Novonesis A/s Class B — Novozymes — Q1 2018 Earnings Presentation
13 slides from Novonesis A/s Class B's earnings presentation, Apr 25, 2018
Slide 1: Novozymes Conference Call Q1 2018
Novozymes Conference Call Q1 2018 April 25, 2018
Slide 2: Highlights
Highlights Distribution of sales & organic growth, Q1 y/y Q1 sales in line with expectations; strong margins -10% • Organic sales growth +2% 6% -5% • Largest industries growing 15% +1% 33% • Household Care +1% • Food & Beverages +5% 18% • Bioenergy +9% +9% • Agriculture & Feed -5% 28% • Technical &
Slide 3: Organic sales growth by geography
Organic sales growth by geography -3% Q1 y/y +13% +1% Q1 y/y 36% Q1 y/y of sales 33% 22% of sales of sales +1% Q1 y/y 9% +6% 35% Emerging markets of sales Q1 y/y 65% Developed markets +0% Q1 y/y 3
Slide 4: Household Care
Household Care 33% of sales Sales in Household Care slightly better than expected Quarterly y/y organic sales growth • Organic growth Q1 2018 y/y +1% 4% • Mixed performance in laundry; soft start in developed markets offset by good development in emerging markets 1% 1% 1% • China, Southeast Asia and
Slide 5: Food & Beverages
Food & Beverages 28% of sales Solid start to the year supported by recent product Quarterly y/y organic sales growth innovation and focused sales efforts 11% 10% • Organic growth Q1 2018 y/y +5% 9% • Solid growth across all major industry segments 6% 5% • Baking performed well despite reduced prices
Slide 6: Bioenergy
Bioenergy 18%of sales Continued good momentum in enzymes for biofuels Quarterly y/y organic sales growth • Organic growth Q1 2018 y/y +9% • US and global ethanol production estimated to have been flat in Q1 2018. 16% Producer margins are improving but inventories remain elevated 14% • Good growth in
Slide 7: Agriculture & Feed
Agriculture & Feed 15%of sales Soft start due to comparisons and poor farm economics Quarterly y/y organic sales growth • Organic growth Q1 2018 y/y -5% 8% • Sales to animal feed ended down as expected due to tough comparisons 2% • BioAg sales decreased following continued poor farm economics and ne
Slide 8: R&D update
R&D update Innova® Drive – improving ethanol yield through faster fermentation Our first launch within yeast for conventional biofuels that enables faster fermentation and works well under acidic and high-temperature conditions Innova® Drive enables leverage of our market-leading position within enz
Slide 9: Q1'18 financials
Q1’18 financials Sales as expected; strong margins • Overall sales growth as expected Key financials Realized Realized (DKKm) Q1’18 Q1’17 • Largest industries growing Organic sales • 6% organic sales growth in emerging markets 2% 3% growth • Negative currency impact of ~8% on sales, mainly from weak
Slide 10: 2018 outlook
2018 outlook Guidance maintained on all parameters • Organic sales growth expectation of 4-6% with growth from all Key financials Realized Outlook (DKKm) Q1’18 2018 segments • As communicated in February 2018, sales growth in the first half Organic sales 2% 4-6% growth expected to be slower than in
Slide 11: Summary
Summary • On track to deliver 4-6% organic sales growth for the full year • Delivering on key strategic initiatives • Strong innovation agenda with many near-to- market opportunities 11
Slide 12: 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
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