Novonesis A/s Class B · OMXCOP:NSIS_B
Novonesis A/s Class B — Novozymes — 9M 2019 Earnings Presentation
13 slides from Novonesis A/s Class B's earnings presentation, Oct 23, 2019
Slide 1: Conference call 9M 2019
Conference call 9M 2019 October 23, 2019
Slide 2: Highlights
Highlights Third-quarter acceleration, but weaker than 9M’19 2019 Key financials Realized Outlook* expected due to difficult agriculturally- Sales growth, organic -2% -2-0% exposed businesses EBIT margin 27.6% 27-28% • Commercialization of innovation progressing as planned Net profit growth -7% -5-0
Slide 3: Organic sales growth by geography
Organic sales growth by geography North America 33% of sales Europe, Middle East & Africa 37% of sales 9M y/y: -5% 9M y/y: 2% Q3 y/y: -7% Q3 y/y: 4% Developed Emerging 66% y/y 9M: -1% / Q3: -2% 34% Latin America 10% of sales y/y 9M: -3% / Q3: +6% Asia Pacific* 20% of sales 9M y/y: 1% 9M y/y: -5% Q3
Slide 4: Household Care
Household Care 33% of sales Solid quarter in line with expectations • Organic sales 9M 2019 y/y: 0%; Q3 2019 y/y: +5% 9M organic sales growth (y/y) • Freshness rollout developing well and according to expectations • Growth from regional customers; pressure from 2% global accounts easing but still pr
Slide 5: Food & Beverages
Food & Beverages 29% of sales Stabilization of baking while starch processing remain challenged 9M organic sales growth (y/y) • Organic sales 9M 2019 y/y: -1%; Q3 2019 y/y: +1% 9% • Solid growth in food & nutrition and beverages 5% • Starch negative due to commodity prices and wet Will be updated 4%
Slide 6: Bioenergy
Bioenergy 19% of sales Weak performance as US ethanol industry remains under pressure 9M organic sales growth (y/y) • Organic sales 9M 2019 y/y: -4%; Q3 2019 y/y: -5% 14% 10% • Declining US ethanol production; Novozymes’ customers holding back more than industry average • Strong initial penetration
Slide 7: Agriculture & Feed
Agriculture & Feed 13% of sales Difficult markets overshadowing growth from innovation 9M organic sales growth (y/y) • Organic sales 9M 2019 y/y: -3%; Q3 2019 y/y: +3% 19% • Feed sales growing as expected driven by roll-out of Balancius™ 5% • BioAg sales still behind target mainly due to wet 0% spri
Slide 8: Two exciting product launches in the third quarter
Two exciting product launches in the third quarter Achieve Advance Optimize 500 For low-temperature Improved performance and and short-cycle on-seed stability automatic dishwashing 8
Slide 9: Financials
Financials Q3 earnings impacted by restructuring costs Key financials Q3’18 Q3’19 9M’18 9M’19 • Organic sales growth of minus 2% y/y (Q3 +1%) Sales growth, organic 5% 1% 4% -2% • Gross margin at 55.2% - roughly 200bp lower than last year due to weak top line and restructuring EBIT margin 28.5% 23.0%
Slide 10: Financials – 2019 outlook
Financials – 2019 outlook Full year outlook confirmed as per October 9 9M’19 2019 Outlook Key financials Realized October 23* revision Sales growth, organic -2% -2-0% • Full-year organic sales growth outlook revised due to persistent headwinds in US ethanol, global agriculture businesses and in EBIT
Slide 11: Summary: Better business with biology
Summary Better Third-quarter acceleration, but weaker than expected business due to US ethanol and agriculturally-exposed markets with biology • Third-quarter performance a step in the right direction, but year-to-date performance not satisfactory • Persistent headwinds in US ethanol, agriculture bu
Slide 12: Turning amazing science into sustainable biological answers
Our business is about turning amazing science into sustainable biological answers in a growing world 6,500 3rd 48% 88 million More than 6,500 active and Science Magazine ranked Market leader in industrial Our customers reduced CO2 pending patents Novozymes the world’s enzymes with an estimated emiss
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