Novonesis A/s Class B · OMXCOP:NSIS_B
Novonesis A/s Class B — Q1 2025 Earnings Presentation
57 slides from Novonesis A/s Class B's earnings presentation, 2025
Slide 1: Q1 2025 Roadshow Presentation
Q1 2025 Roadshow Presentation
Slide 2: Forward-looking statements
This presentation includes forward-looking statements, including statements relating to the operating, financial and sustainability performance and results of the group and/or the industry in which it operates. Forward-looking statements include, without limitation, any statement that may predict, f
Slide 3: Strong start to the year, full-year outlook confirmed
Strong start to the year, full-year outlook Sales and organic sales growth y/y 44% 56% confirmed Food & Health Biosolutions Planetary Health EURm Biosolutions • Organic sales growth (OSG) of 11% • Volume growth (~10%) supported by pricing (~1%) +11% OSG • Emerging markets grew 15%; developed markets
Slide 4: Food & Health Biosolutions
Human Health Sales and organic sales growth, 26% Food & Health Biosolutions y/y Food & Health Biosolutions 74% EURm +12% Food & Beverages OSG Performance Q1 2025 • Organic sales growth of 12% 424.8 476.4 • Growth supported by both Food & Beverages and Human Health Q1 2024 Q1 2025 • Growth mainly dri
Slide 5: Food & Health Biosolutions: Food & Beverages
Sales and organic sales growth Food & Health Biosolutions: Food & Beverages y/y Food & Beverages EURm +11% OSG Performance Q1 2025 • Organic sales growth of 11% 352.7 317.4 • Broad-based growth across geographies and industries • Strong momentum in Dairy supported by innovation Q1 2024 Q1 2025 • Pos
Slide 6: Food & Health Biosolutions: Human Health
Sales and organic sales growth Human Health y/y Food & Health Biosolutions: Human Health EURm +13% OSG Performance Q1 2025 • Organic sales growth of 13% 123.7 107.4 • Strong growth in Dietary Supplements • Advanced Health & Nutrition driven by Advanced Protein Solutions (APS); Early Life Nutrition s
Slide 7: Planetary Health Biosolutions
Household Care Sales and organic sales growth 36% Planetary Health Biosolutions y/y Planetary Health Biosolutions 64% EURm Agriculture, Energy & Tech +11% OSG Performance Q1 2025 • Organic sales growth of 11% 540.7 601.2 • Growth supported by both Household Care and Agriculture, Energy & Tech Q1 202
Slide 8: Planetary Health Biosolutions: Household Care
Sales and organic sales growth Household Care y/y Planetary Health Biosolutions: Household Care EURm +12% OSG Performance Q1 2025 • Organic sales growth of 12% 191.9 215.5 • Strong growth driven by accelerated penetration in emerging markets as well as strong performance in developed markets, suppor
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 +10% OSG Performance Q1 2025 • Organic sales growth of 10% 385.7 348.8 • Strong growth in Energy and Tech • Growth in Agriculture driven by Plant Q1 2024 Q1 2025 • Positive im
Slide 10: Financial results Q1 2025
Financial results Q1 2025 – 11% broad-based organic sales growth – 310 bps improvement in Adj. EBITDA margin driven by stronger adjusted gross margin and synergies – 27% increase in adj. EPS and 36% in adj. EPS excl. PPA – Cash flow benefitted from higher net profit, offset by lower trade payables a
Slide 11: Outlook 2025
Outlook 2025 • Organic sales growth of 5-8% (6-9% excl. exiting certain countries) • 4-7 % volume • ~ 1 % price • ~ 1 % sales synergies • ~ (1) % exiting certain countries • Adjusted EBITDA margin between 37 and 38% Outlook 2025¹ Organic sales growth 5-8% (6-9% excl. exit) Adjusted EBITDA margin 37-
Slide 12: Summary
Summary • Strong Q1 performance across the business • 2025 outlook maintained • Well positioned despite higher macro-related uncertainty 12
Slide 13: The era of Biosolutions
The era of Biosolutions
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
Slide 15: 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 ~33% of sales of Biosolutions Enabling healthier lives Key solutions Human Health 45% ~12% of sales Enzymes Probiotics Household Care Pro
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: The era of Biosolutions is still in its early stages
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 Note: Not end market value Source: American Chemistry Cou
Slide 18: 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 19: 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 20: Unmatched scale in Biosolutions R&D
Unmatched scale in Biosolutions R&D ~11% of revenue in annual R&D investments ~2,000 Biosolutions R&D experts +10 years average tenure ~40 R&D & application centres ~10,000 patents Note: 12M 2024 figures
Slide 21: 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 22: 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
Slide 23: 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 24: 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 Production sites of orders shipped Supply chain +97% on time 72 net promoter score 1 production sites across +30 four continents customer service/ +35 distribution centers Note: 1)
Slide 25: 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 26: Biosolutions address global challenges
Biosolutions address global challenges Novonesis Biosolutions 45% 55% supporting supporting a healthier lives healthier planet …with +83% of sales documented and aligned to six United Nation's Sustainable Development Goals (SDG) Note: 12M 2024 figures
Slide 27: 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 28: Sustainability agenda with clear targets and ambitions
Sustainability agenda with clear targets and ambitions Planet People Absolute GHG emission reduction of 63% since 2018 Climate Water Circularity Work safety Gender diversity Targets • By 2025. Reduce absolute GHG • By 2025. Improve freshwater • By 2025. Maintain 100% circular • By 2025. Maintain our
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 • Ambition to further accelerate Driven by Driven by beyond 2025 1 Volume 1 Volume 2 Price 2 Synergies 3 Synergies 3 Price Food & Health Planetary Health Bi
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: Share and ownership structure
Share and ownership structure Merger Foundation ownership On January 29, 2024, the statutory merger between Novozymes Novo Holdings A/S is wholly owned by the Novo Nordisk A/S and Chr. Hansen Holding A/S was successfully completed, Foundation, an independent Danish foundation with corporate effected
Slide 32: There's a Biosolution for (almost) everything
There's a Biosolution for (almost) everything
Slide 33: Food & Beverages
Food & Beverages Share of Novonesis sales Food & Beverages 33% 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 34: 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 35: 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 36: 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 Local and specialized direct sales force Technical, co-creation and applicati
Slide 37: 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 38: 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 39: 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 40: 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 41: 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 Mental Solutions intestinal Children Health Protective Texture areas Probiotics Spores Postbiotics Synbiotics Enzymes
Slide 42: 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 43: Household Care
Household Care Share of Novonesis sales Household Care 19% Professional & ~10% ~10% Medical Cleaning Dishwash Laundry ~80% Fundamental growth drivers Growing Increasing population energy needs Climate risks Laundry Dishwash Professional & Medical cleaning . 43 Note: 12M 2024 figures
Slide 44: 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 45: 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 46: 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 Lowering cost and enabling premiumization Customer and consumer demands • Better washing performance • Fewer chemicals & lower energy use + + • Convenience and compaction E.g. wash a
Slide 47: 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 . 47 Note:
Slide 48: 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 49: 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 50: 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 market value, billion EUR market value, billion EUR • 400 million more people by 2030 Plant Animal Plant Animal • Middle-class population inc
Slide 51: 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 (canola, peas, Silage Pet BioYield Bio-Control Nutrition Health lentils, etc.) Probiotics Corn Enzymes Animal sales by species Other Other Cattle Poultry Innovation focus Pres
Slide 52: New setup unlocks the full value of our animal biosolutions
New setup unlocks the full value of our animal biosolutions with direct customer access driving Customers accelerated growth, earnings & innovation Old setup: Lacking full commercial access Integrators • Leading R&D, application and production of both enzymes and probiotics R&D Enzymes dsm-firmenich
Slide 53: Bioenergy market volumes expected to increase and diversifying
Novonesis CMD 2024 Bioenergy market volumes expected to increase and diversifying Ethanol volumes are growing and geographically diversifying Feedstock diversification materializing with growing volumes in biomass ethanol & biodiesel +40% % Total growth Installed and planned biomass production in 1.
Slide 54: 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 End market diversification driven by innovation Novonesis energy sales have decoupled from underlying US ethanol volume growth through diversification Future streams High ?% Corn oil
Slide 55: Biosolutions is key to drive value in today's biorefineries
Biosolutions is key to drive value in todays’ biorefineries as well as the platform for opening new value streams Sustainable Aviation Vegetable oil Fuel (SAF) Bio-derived Chemicals (Ethylene, Ethyl Acetate, Butadiene,…) High Value Protein Protein Feedstock input Maritime Fuel Ethanol Existing value
Slide 56: 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 Sustainability Increasing demand for consumer products to accommodate Grain processing, oils & fats and bioproces
Slide 57: The era of Biosolutions is now
The era of Biosolutions is now