Novonesis A/s Class B · OMXCOP:NSIS_B
Novonesis A/s Class B — Investor Day (June 2024)
120 slides from Novonesis A/s Class B's investor day presentation, Jun 18, 2024
Slide 1: The era of Biosolutions
The era of Biosolutions Novonesis Capital Markets Day June 18th, 2024
Slide 2: Today you will…
Novonesis CMD 2024 Today you will… Meet the management team Learn more about Novonesis Understand how we capture and accelerate organic sales growth 2
Slide 3: The presenting team
Novonesis CMD 2024 The presenting team Ester Rainer Jacob Amy Tina Sejersgård Baiget Lehmann Paulsen Byrick Fanø CEO CFO EVP, Food & Beverages EVP, Human Health EVP, Planetary Health Claus Crone Anders Henrik Jørck Morten E. Fuglsang Lund Nielsen Rasmussen Chief Scientific Officer Chief Operating Of
Slide 4: Agenda for the day
Novonesis CMD 2024 Agenda for the day (BST time zone) 13:00 The era of Biosolutions Ester Baiget, Chief Executive Officer 13:20 Better our world with biology Morten Enggaard Rasmussen, EVP People & Stakeholder Relations 13:30 Q&A Food & Health Biosolutions 13:40 Food & Beverages Jacob Vishof Paulsen
Slide 5: The era of Biosolutions
The era of Biosolutions Ester Baiget Chief Executive Officer
Slide 6: Novonesis is already present in your everyday life
Novonesis CMD 2024 Novonesis is already present in your everyday life – our products are used by more than half the world's population 6
Slide 7: Fundamental growth drivers create strong pull for Biosolutions
Novonesis CMD 2024 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 nutritiona
Slide 8: The era of Biosolutions is still in its early stages
Novonesis CMD 2024 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 8 Note: Not end market value Source: A
Slide 9: Resilient end market exposure leveraging complementary fermentation and innovation technologies
Novonesis CMD 2024 Resilient end market exposure leveraging complementary fermentation and innovation technologies Food & Health Food & Beverages Precision fermentation Biosolutions ~34% of sales of Biosolutions Key solutions Enabling healthier lives Human Health Enzymes Probiotics 46% ~12% of sales
Slide 10: Combining world-class Biosolutions capabilities into a superior powerhouse
Novonesis CMD 2024 Combining world-class Biosolutions capabilities into a superior powerhouse across the full value chain Scale up and production Strong customer Broad Biosolutions of robust and relationships and toolbox and affordable understanding of capabilities Biosolutions customer needs Pure p
Slide 11: Foundation in place to leverage capabilities
Novonesis CMD 2024 Foundation in place to leverage capabilities Combination rationale Global presence & Continued prioritization validated & integration commercial excellence on track and focused execution in an expanding opportunity space Market driven R&D prioritization Triple bottom line focus Te
Slide 12: Capturing and accelerating organic sales growth
Novonesis CMD 2024 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% Explorativ
Slide 13: The era of Biosolutions is now
Novonesis CMD 2024 The era of Biosolutions is now The world is in a critical World-class Biosolutions A strong focus and A foundation to capture need of Biosolutions capabilities unmatched scale within the right opportunities Biosolutions This is just the beginning 13
Slide 14: Better our world with biology
Better our world with biology Morten Enggaard Rasmussen EVP of People & Stakeholder Relations
Slide 15: We better our world with biology and drive business performance
Novonesis CMD 2024 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 supporte
Slide 16: Biosolutions address global challenges
Novonesis CMD 2024 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) 16
Slide 17: Accelerating the impact of Biosolutions
Novonesis CMD 2024 Accelerating the impact of Biosolutions Advocating on the global stage to push for change 17
Slide 18: People. Planet. Positive.
Novonesis CMD 2024 Driving change through both the impact of Biosolutions and operations People. Biosolutions impact Planet. Drive de- carbonization Revitalize nature Replace fossils Enable healthy Transform living food systems Positive. Operational performance 18
Slide 19: Building a home for 10,000 talented employees
Novonesis CMD 2024 Building a home for 10,000 talented employees Culture & engagement Leadership Individual connection Overall Globalization Diversity to culture engagement1 8.0 8.1 15% 35% “I understand and can 0.3 point above increase in leadership of directors+ connect with the Novonesis external
Slide 20: Non-financial agenda with clear targets and ambitions
Novonesis CMD 2024 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 s
Slide 21: Key messages
Novonesis CMD 2024 Key messages Transformative Biosolutions Sustainability leadership We drive systemic change enable customer success and is core to Novonesis to allow faster adoption societal impact of Biosolutions 21
Slide 22: Food & Beverages
Food & Beverages Supporting healthier lives Jacob Vishof Paulsen EVP of Food & Beverages
Slide 23: Present in your everyday food & beverages consumption
Novonesis CMD 2024 Present in your everyday food & beverages consumption 23
Slide 24: Biology toolbox delivering high strategic value to customers
Novonesis CMD 2024 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 Improv
Slide 25: Bringing back biology to make foods better and cleaner
Novonesis CMD 2024 Bringing back biology to make foods better and cleaner From complex … to cleaner labels, … adding new benefits for labels… enabled by Biosolutions… customers and consumers Taste Sugar Ingredients Ingredients Ingredients Ingredients Texture Fat Wheat Appearance Salt Yeast Wheat Mil
Slide 26: Food & Beverages overview
Novonesis CMD 2024 Food & Beverages overview Share of Novonesis sales Share of Food & Beverages Food & Beverages 34% Dairy ~60% Fundamental growth drivers Baking ~20% Growing Increasing population energy needs Evolving Beverages, Meat, nutritional & Plant based and other ~20% Climate risks health tr
Slide 27: Biosolutions will continue to outgrow mature and stable end markets
Novonesis CMD 2024 Biosolutions will continue to outgrow mature and stable end markets End markets continue to show stable growth... … with an increasing need for Biosolutions Cheese 1-2% Industrialization & convenience Fermented milk 1-3% Health benefits & clean label Baking 0-2% Beverages 2-3% Tas
Slide 28: Proven strong position to outgrow end markets
Novonesis CMD 2024 Proven strong position to outgrow end markets Market growth, Adjacencies & New Penetration Explorative share & pricing upselling Adjacencies & growth upselling opportunities Applications and ++ • End market • Conversion • Incremental solutions volume growth across solutions applic
Slide 29: Unmatched customer understanding and relations
Novonesis CMD 2024 Unmatched customer understanding and relations Our commercial model provides ~1,000 food and beverage Biosolutions experts High customer a competitive advantage and 27 application centers across the world satisfaction NPS1 in 2023 Local and specialized 74 direct sales force Techni
Slide 30: Deep insights drive sharpness in innovation and execution
Novonesis CMD 2024 Deep insights drive sharpness in innovation and execution 95% of relevant dairy market mapped … with 80% “drilled down” at product and country level… to specific factory level Market mapping Customer and factory mapping • Overview of • Data on product lines, opportunity landscape
Slide 31: Creating value with customers through in-depth understanding
Novonesis CMD 2024 Creating value with customers through in-depth understanding Product and innovation impact Examples Process and productivity impact Beverages Dairy & Baking Customer Low-Carb & Saving Standard Beer Non-Alcoholic New Categories Product Benefit in % of COGS Category YOFLEX® Protein
Slide 32: Established growth platforms accelerating from combined strengths
Novonesis CMD 2024 Established growth platforms accelerating from combined strengths Bioprotection Functional Food Plant-based food Extended shelf-life and food waste Leveraging our strongholds to move Stronger value proposition through management with clean label into new application areas combinat
Slide 33: Clear path to realization of short-term revenue synergies
Novonesis CMD 2024 Clear path to realization of short-term revenue synergies Examples Portfolio expansion Portfolio expansion Cross-selling & cross-selling & cross-selling Enhanced cheese flavor Direct yeast inoculation Combination of enzymes and creation with lipases solutions for beer cultures str
Slide 34: What if…
Novonesis CMD 2024 What if… …per capita yogurt consumption in ...the dairy bulk conversion journey is …we find a path to increase the share emerging markets reached half the replicated in the beer industry with a of strategic Biosolutions to >10% of level of Turkey? 50% conversion?1 recipe costs? ~3
Slide 35: Key messages
Novonesis CMD 2024 Key messages Strong growth opportunities in Leverage fermentation Strong and growing synergy core markets and significantly expertise, technology platform potential across markets with outgrowing underlying food & and customer understanding to validated technologies beverage marke
Slide 36: Human Health
Human Health Supporting healthier lives Amy Byrick EVP of Human Health
Slide 37: Bringing Biosolutions to support better health, wellness and nutrition
Novonesis CMD 2024 Bringing Biosolutions to support better health, wellness and nutrition through all stages of life Preventative Infants & Children Adult health Biosolutions that support healthy Biosolutions that empower Biosolutions that support the growth, digestive and immune individuals to take
Slide 38: Increasing understanding of the microbiome drives opportunity
Novonesis CMD 2024 Increasing understanding of the microbiome drives opportunity to accelerate health benefits Microbiome research reveals the importance of our human microbiota and the connection to healthy living Examples In the past 20 years, the Gut-brain axis We continue to learn number of micr
Slide 39: Human Health overview
Novonesis CMD 2024 Human Health overview Share of Novonesis sales Share of Human Health Human Health 12% Dietary ~75% supplements Fundamental growth drivers Advanced Health Evolving ~25% Growing & Nutrition nutritional & population health trends 39 Note: 2023 pro forma sales
Slide 40: Well positioned in attractively growing health categories
Novonesis CMD 2024 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 CAG
Slide 41: Differentiated value proposition 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 42: Proven track record supported by scientific and clinical data
Novonesis CMD 2024 Proven track record of building strong and customized Biosolutions supported by scientific and clinical data Globally, over 250 clinical studies and 27,000 Wide solutions range supporting health through the microbiome consumers reached Example products Novonesis proprietary studie
Slide 43: Execution power across a fully integrated value chain
Novonesis CMD 2024 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
Slide 44: Solid traction on realizing short term revenue synergies
Novonesis CMD 2024 Solid traction on realizing short term revenue synergies Examples Customized product combinations Cross-selling Combining differentiating strains Cross-selling probiotics through for increased customer value B2HCP and B2C channels Attractive synergies through cross-selling, combin
Slide 45: Unlocking the next health solutions through advanced precision fermentation
Novonesis CMD 2024 Unlocking the next health solutions through advanced precision fermentation Taste & Texture Medical nutrition Infant nutrition Products and proteins to enhance Tailored solutions to improve the High-quality ingredients to taste and texture in food lives of people with medical enha
Slide 46: 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 47: What if…
Novonesis CMD 2024 What if… …Biosolutions for mental health …half of the global infant formula were …just 0.1% of global health spend were reached 10% of people who to contain HMOs? redirected to preventative solutions to experience stress regularly? increase health and wellness? 350 million people
Slide 48: Key messages
Novonesis CMD 2024 Key messages Offering a wide portfolio of Leveraging in-house execution Unlocking new potentials of Biosolutions within human power across value chain human health Biosolutions health through advanced precision fermentation 48
Slide 49: Planetary Health Biosolutions
Planetary Health Biosolutions Supporting a healthier planet Tina Sejersgård Fanø EVP of Planetary Health Biosolutions
Slide 50: Enabling greener and more efficient solutions for farms, factories and homes
Novonesis CMD 2024 Enabling greener and more efficient solutions for farms, factories and homes Farms Factories Homes Biosolutions to drive healthy growth Biosolutions to increase efficiency Biosolutions to enable families to in farms for animals and plants while and energy output in factories, by t
Slide 51: Strong portfolio of efficient solutions for a sustainable planet
Novonesis CMD 2024 Strong portfolio of efficient solutions for a sustainable planet Biodegradable, resilient, yield-improving and cost-efficient Replace fossil fuels Reduce energy Increase yields to Replace to lower CO2 & water produce more with chemicals emissions consumption less Household Care Ag
Slide 52: Household Care overview
Novonesis CMD 2024 Household Care overview Share of Novonesis sales Share of Household Care Laundry ~80% Household Care 18% Fundamental growth drivers Dishwash ~10% Growing Increasing population energy needs Professional & Medical Cleaning ~10% Climate risks 52 Note: 2023 pro forma sales
Slide 53: Stable end market growth with significant potential in emerging markets
Novonesis CMD 2024 Stable end market growth with significant potential in emerging markets Stable growth in global Significant potential in emerging Emerging market penetration detergent volumes1 markets drivers % CAGR DM EM Industrialization Historical market Detergent market size Detergent volume1
Slide 54: Outgrowing global detergent market volume growth
Novonesis CMD 2024 Outgrowing global detergent market volume growth enabled through innovation and increased penetration Market growth, Adjacencies & New Penetration Explorative share & pricing upselling Adjacencies & growth upselling opportunities Applications and + • End market • Emerging • Reform
Slide 55: Meeting customer needs through strong application insights
Novonesis CMD 2024 Meeting customer needs through strong application insights We have strong application …which is a key enabler in unlocking … proven by our insights… value from innovation and catering to customer satisfaction local needs… Best and broadest portfolio of Biosolutions (incl. enzymes)
Slide 56: Inclusion of Biosolutions is a key enabler to drive value for customers
Novonesis CMD 2024 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 +
Slide 57: Luminous® delivers on the evolving consumer trends
Novonesis CMD 2024 Luminous® delivers on the evolving consumer trends Additional step on the freshness journey targeting brilliant colors and whites as a part of the "deep" clean benefits Maintain whites and colors In any detergent format Biodegradable Washed without Washed with Luminous® 57
Slide 58: Agriculture, Energy & Tech overview
Novonesis CMD 2024 Agriculture, Energy & Tech overview Share of Novonesis sales Share of Agriculture, Energy & Tech Agriculture, Energy & Tech 36% Agriculture ~30% Animal Plant Fundamental growth drivers Energy ~50% Biofuel Biodiesel Biomass Growing Increasing population energy needs Tech ~20% Clima
Slide 59: Strong growth potential for Biosolutions in plant and animal
Novonesis CMD 2024 Strong growth potential for Biosolutions in plant and animal Key drivers Global agricultural ingredient market Global biological ingredient agriculture market market value, billion EUR market value, billion EUR • 400 million more people by 2030 Plant Animal Plant Animal • Middle-c
Slide 60: A broad complementary portfolio of Biosolutions across agriculture
Novonesis CMD 2024 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 √
Slide 61: Multiple go-to-market channels enables broad market access
Novonesis CMD 2024 Multiple go-to-market channels enables broad market access Capabilities and unique … selectively choosing commercial partners … or accessing through technologies enable … across products and geographies … direct sales Partnerships World-leading market and technology experts Animal
Slide 62: Revenue synergies from combined Animal and Plant Health platform
Novonesis CMD 2024 Revenue synergies from combined Animal and Plant Health platform Examples Cross-selling synergies Cross-selling synergies Plant Health Animal Health Leveraging the complementary go- Leveraging the complementary to-market approach for Plant Health approach of our channels to increa
Slide 63: 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 +5% ‘25
Slide 64: Understanding individual Bioenergy customer needs
Novonesis CMD 2024 Understanding individual Bioenergy customer needs from extensive field expertise and application knowledge Leveraging strong field-based insights… … to create tailormade solutions to … with high customer customer-specific needs … satisfaction Deepest and broadest portfolio of Bios
Slide 65: Bioenergy expected to continue to outgrow underlying US ethanol volume growth
Novonesis CMD 2024 Bioenergy expected to continue to outgrow underlying US ethanol volume growth through innovation and diversification US ethanol production growth & Novonesis bioenergy sales growth Novonesis bioenergy sales diversification Other revenue streams US 1G ethanol US Ethanol YoY growth
Slide 66: Enabling customers to diversify and unlock value streams from cracking corn
Novonesis CMD 2024 Enabling customers to diversify and unlock value streams from cracking corn Future streams High ?% Enzymes + Enzymes Enzymes Yeast Yeast 5% Corn oil High Protein Medium 20% 5% Fiber ethanol High 70% Ethanol Low-medium Input of Conversion to Fermentation corn & starches fermentable
Slide 67: Future additional value streams adds optionality
Novonesis CMD 2024 Future additional value streams adds optionality Sustainable Corn oil Aviation Fuel Bio-derived High Value Chemicals Protein Protein (Ethylene, Ethyl Acetate, Butadiene,…) Ethanol Maritime fuel Existing value streams New value streams 67
Slide 68: Technical processing presence across all steps of the value chain
Novonesis CMD 2024 Technical processing presence across all steps of the value chain driving productivity and sustainability improvements Origination Processing Consumer products Process Yield optimization Sustainability Increasing demand for consumer products to accommodate Grain processing, oils &
Slide 69: What if…
Novonesis CMD 2024 What if… …enzymes replaced an additional …EU fast tracked registration of …15% of global jet fuel 10% of chemicals in detergents?1 biocontrol solutions to be on par with consumption was replaced by US?2 Sustainable Aviation Fuel from starch-based ethanol? ~2x ~3x ~2x Increase of g
Slide 70: Key messages
Novonesis CMD 2024 Key messages Stronger capabilities in emerging Solid bioenergy outlook unlocked Accelerating the wide markets and innovation by innovation and higher ethanol opportunity space in plants and momentum drives growth in demand animals through combined household care technology platfor
Slide 71: Research & Development
Research & Development Claus Crone Fuglsang Chief Scientific Officer
Slide 72: It all starts with understanding the building blocks of nature
Novonesis CMD 2024 It all starts with understanding the building blocks of nature Enzymes and microorganisms Leveraging nature's own Harnessing these natural entities, catalyze reactions, decompose bioengineers, enzymes and creating sustainable solutions in matter, recycle nutrients, microorganisms,
Slide 73: Mastering the engineering of biology and fermentation
Novonesis CMD 2024 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 specifically Adding strain specific tailormade Enzymes, proteins o
Slide 74: Delivering a wide array of Biosolutions
Novonesis CMD 2024 Delivering a wide array of Biosolutions Enzymes Vitamins Polymers Leveraging output from the Proteins Metabolites Biochemicals production- Sugars and Fuels Fats microorganism Fibers (HMO) Leveraging the Yeast Probiotics microorganism itself Food cultures Postbiotics 74
Slide 75: Technology advances make Biosolutions increasingly relevant
Novonesis CMD 2024 Technology advances make Biosolutions increasingly relevant - and Novonesis is at the forefront Quantum computing Humans have used biotechnology since the dawn of civilization AI driven science Digital twins Science and knowledge have paved the Microfluidics way for modern advance
Slide 76: Unmatched scale in Biosolutions R&D
Novonesis CMD 2024 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 76
Slide 77: Unique insights, bioengineering toolbox and scaling capabilities
Novonesis CMD 2024 Unique insights, bioengineering toolbox and scaling capabilities across value chain drive enhanced value creation from combined strengths Scale up and production Strong customer Broad of robust and relationships and Biosolutions affordable understanding toolbox and Biosolutions cu
Slide 78: Customer and application understanding drives innovation
Novonesis CMD 2024 Customer and application understanding drives innovation • Technical and scientific expertise Commercial at the forefront of the sales force organization • Able to break down customer issues into biological problems Customer Innovation Value • Bioengineering toolbox and Research &
Slide 79: World-leading proprietary strain library
Novonesis CMD 2024 World-leading proprietary strain library enables higher likelihood of finding the right solutions +100,000 …leveraged by strains and unique designing specific Biosolutions for isolates customers 79
Slide 80: World class bioengineering drives speed and relevance in innovation
Novonesis CMD 2024 World class bioengineering drives speed and relevance in innovation Bioengineering platform Inspired by nature Tailored for application Machine learning-driven bioprospecting Advanced biochemical & strain engineering Customer needs DESIGN BUILD LEARN TEST Powerscore RI PC:Equest_1
Slide 81: Leveraging artificial intelligence and proprietary data
Novonesis CMD 2024 Leveraging artificial intelligence and proprietary data for faster and better innovation Artificial intelligence is …prediction …learning …and our data is the applied for… foundation of it all AI is today being applied across… Commercial Research and development Operations Predict
Slide 82: Precision fermentation and scaling are core capabilities
Novonesis CMD 2024 Precision fermentation and scaling are core capabilities to unlock potential of Biosolutions Fermentation Recovery Stabilization Formulation High yield High purity Minimal Applicable production products product loss format Each Biosolution is designed for scalability 82
Slide 83: Increasing productivity gains by 2-5% annually
Novonesis CMD 2024 Increasing productivity gains by 2-5% annually leads to higher asset utilization Classic optimization tools Advanced strain engineering • 2-5% annual productivity gain We enhance overall efficiency We construct new strains and depending on Biosolution of production processes and m
Slide 84: Clear rules of prioritization enable efficient R&D allocation
Novonesis CMD 2024 Clear rules of prioritization enable efficient R&D allocation Prioritization of innovation projects Innovation governance throughout development stages is based on 1. Strategically set direction of Prioritization Early-stage Prioritization Late-stage innovation focus 2. Commercial
Slide 85: Increasing the value of the combined innovation pipeline
Novonesis CMD 2024 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
Slide 86: Combining Biosolutions creates more value for customers
Novonesis CMD 2024 Combining Biosolutions creates more value for customers Enzymes: Precision Tools Microbes: Versatile Factories Precisely accelerate specific reactions in diverse Adapt to produce varied compounds in different conditions environments • High Specificity • Broad Functionality • Rapid
Slide 87: Entering the era of Biosolutions with world-class innovation capabilities
Novonesis CMD 2024 Entering the era of Biosolutions with world-class innovation capabilities Strong customer Scale up and production of Broad Biosolutions relationships and understanding robust & affordable toolbox and capabilities customer needs Biosolutions Unmatched production Customer-focused Bi
Slide 88: Key messages
Novonesis CMD 2024 Key messages Unique capabilities across Growing innovation pipeline in Disciplined pipeline governance application understanding, both core and newer industries bioengineering and scaling up & production 88
Slide 89: Operations
Operations Anders Lund Chief Operating Officer
Slide 90: Unmatched scale and position in Biosolutions production
Novonesis CMD 2024 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 facilitie
Slide 91: Strong integration across the full value chain
Novonesis CMD 2024 Strong integration across the full value chain R&D Operations Commercial Core R&D Procurement Supply chain Sales and application Production Scale up Unique ability to scale up and produce robust & affordable Biosolutions 91
Slide 92: Global production and supply chain set-up
Novonesis CMD 2024 Global production and supply chain set-up with unmatched scale, supply reliability and cost leadership +100,000 orders in 2023 Production sites Supply chain +97% of orders shipped on time in 2023 72 net promoter score +30 production sites across four continents +35 customer servic
Slide 93: Continued focus on optimization across Operations
Novonesis CMD 2024 Continued focus on optimization across Operations Procurement Production Supply Levers Yield optimization Automation & robotics Technology leaps Offshoring Increasing Product portfolio value optimization Procurement optimization Footprint optimization Logistics optimization 93
Slide 94: We are tracking ahead of our synergy plans
Novonesis CMD 2024 We are tracking ahead of our synergy plans Procurement Production Supply Chain • Direct spend • Yield optimization • Modal shift in optimization • Insourcing logistics • Indirect spend • Joint tendering optimization of transportation • Payment term contracts extensions • Inventory
Slide 95: Key messages
Novonesis CMD 2024 Key messages Unmatched scale and Solid opportunity for continued Cost synergies are capabilities across Biosolutions productivity improvement being achieved 95
Slide 96: Strategy & Integration
Strategy & Integration Henrik Jørck Nielsen EVP of Strategy & Integration
Slide 97: Combination is progressing very well and as planned
Novonesis CMD 2024 Combination is progressing very well and as planned Shared Cost Sales Continued Successful systems & Corporate synergy synergy Organizational prioritization for transition processes identity realization initiation design accelerated growth Combination planning Becoming one company
Slide 98: Shaping Novonesis for long-term value creation
Novonesis CMD 2024 Shaping Novonesis for long-term value creation A new organization Target operating model principles designed and implemented Leverage the existing business Nimble ways of working and organizing expertise Customers first at the core Focus on continuity in the sales force Business l
Slide 99: Strong progress in achieving 80-90m EUR cost synergies
Novonesis CMD 2024 Strong progress in achieving 80-90m EUR cost synergies Significant procurement synergies achieved Composition of run-rate cost Majority of organizational synergies synergies today realized as of 1H Procurement ~40% Considerable synergies identified ~80% of run-rate across supply c
Slide 100: On track to deliver 200m EUR in sales synergies
Novonesis CMD 2024 On track to deliver 200m EUR in sales synergies Food & Beverages 12 Dec Deal announcement 2022 ~50 Synergy initiated initiatives Identification and Cheese Brewing Plant based Pre Day 1 prioritization 200m EUR in run-rate Human Health 29 Jan sales by 2027 with 2024 Deal closing 80-
Slide 101: The time for Biosolutions is now
Novonesis CMD 2024 The time for Biosolutions is now Biosolutions market We are at an inflection point Increasing Technology Accelerating demand advancements market for Biosolutions readiness Past Today Future 101
Slide 102: A pure play Biosolutions business
Novonesis CMD 2024 A pure play Biosolutions business Focused on delivering high customer value Strong customer Scale up and production Broad Biosolutions relationships and of robust & affordable toolbox and understanding of customer Biosolutions capabilities needs 30% of sales come from new launches
Slide 103: Growing from the core while establishing building blocks for future growth
Novonesis CMD 2024 Growing from the core while establishing the building blocks for future accelerated growth Markets and solutions New Core Adjacencies Explorative Explorative Adjacencies & growth upselling Biggest contributor Biggest contributor Foundation for new opportunities Applications and of
Slide 104: Actively managing the portfolio of opportunities
Novonesis CMD 2024 Actively managing the portfolio of opportunities …exited …developing …established Water Carbon Plastic Biocontrol HMO treatment capture recycling Process to Bacthera Biopharma Fermented Plant Health evaluate current processing plant based projects & new opportunities Joint Newly V
Slide 105: Continuing to prioritize and make choices to increase value creation
Novonesis CMD 2024 Continuing to prioritize and make choices to increase value creation We will prioritize resources for We will not High growth segments and geographies Pursue any and all opportunities Segments where we have competitive Compete where we don’t have a strong advantage right to play B
Slide 106: Key messages
Novonesis CMD 2024 Key messages Integration on track and synergy Pure play Biosolutions strategy Prioritizing the right targets validated and being growth opportunities realized 106
Slide 107: Financials
Financials Rainer Lehmann Chief Financial Officer
Slide 108: A strong financial position as the backbone
Novonesis CMD 2024 A strong financial position as the backbone 2024 outlook 2024 indicated Organic sales growth Gross margin Organic sales growth1 Upper end of +6% 5-7% >55% 2024 outlook 2024 indicated Adj. EBITDA margin NIBD/EBITDA2 2019 2020 2021 2022 2023 35-36% ~1.5x 108 Note: 1) Simple combinat
Slide 109: Ambition to accelerate organic sales growth beyond 2025
Novonesis CMD 2024 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 S
Slide 110: Margin expansion driven by structural levers and synergy realization
Novonesis CMD 2024 Margin expansion driven by structural levers and synergy realization Adjusted EBITDA ~37% Easing Productivity Value Synergies Strategic 33.8% Synergies input Strategic improvements Pricing growth Value costs growth & economies investments investments of scale Productivity Pricing
Slide 111: Cost synergy achievement ahead of plan
Novonesis CMD 2024 Cost synergy achievement ahead of plan Cost synergies of EUR 80-90m by Current run-rate as % of target 2026 • Production optimization and operating efficiencies COGS • Direct procurement 40-50% ~70% • Logistics • Overheads SG&A • Indirect procurement 50-60% ~90% • Logistics Total
Slide 112: R&D investments as a key driver of sales growth and margin expansion
Novonesis CMD 2024 R&D investments as a key driver of sales growth and margin expansion R&D allocation Technology development ~10% Optimization R&D / sales ratio1 New product development 112 Note: 1) R&D capitalization in line with combined historical level from legacy companies (pro forma 2023 belo
Slide 113: Increasing free cash flow generation from multiple drivers
Novonesis CMD 2024 Increasing free cash flow generation from multiple drivers CAPEX including strategic Working capital as % of sales Stronger Free Cash Flow investments as % of sales 9-11% Profit Input cost normalization Input cost inflation Working Capital Growth Growth management CAPEX Working ca
Slide 114: Clear capital allocation priorities
Novonesis CMD 2024 Clear capital allocation priorities Strong balance sheet 1 Investing for growth People, innovation and capacity Leverage ratio NIBD/EBITDA1 We will not 1.7x Could temporarily 2 Acquisitions • Expand outside our core go higher if capabilities ~1.5x acquiring Complementary value-add
Slide 115: Focus on the triple-bottom line secures sustainable growth
Novonesis CMD 2024 Focus on the triple-bottom line secures sustainable growth Financials Planet People Organic sales growth CAGR of 6-8% through 2025 Climate Work safety Adjusted EBITDA margin of ~37% in 2025 Water Gender diversity Clear capital allocation priorities Circularity Ambition to further
Slide 116: The CFO agenda
Novonesis CMD 2024 The CFO agenda Appropriate resource allocation Balancing short and and cost management long-term investments Building a scalable Strengthening business insights platform for growth and data driven decision-making 116
Slide 117: Key messages
Novonesis CMD 2024 Key messages Strong financial position Profitable organic sales growth Disciplined and clear on track capital allocation 117
Slide 118: This is just the beginning
Novonesis CMD 2024 This is just the beginning Significant opportunity Strong and leading Unique capabilities space position across the full Biosolutions value chain 118
Slide 119: The era of Biosolutions is now
The era of Biosolutions is now
Slide 120: 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