Slide 1: Novozymes Conference Call 9M 2018
Novozymes Conference Call 9M 2018 October 24, 2018
Slide 2: Highlights
Highlights Satisfactory 9M; 5% organic sales growth in Q3 Distribution of sales and organic growth, 9M y/y Organic sales growth +4% (Q3: +5%) -7% • Bioenergy +14% (Q3: +15%) +5% 6% • Agriculture & Feed +5% (Q3: +10%) 14% • Food & Beverages +4% (Q3: +3%) 32% 0% • Household Care 0% (Q3: +2%) • Technic
Slide 3: Organic sales growth by region
Organic sales growth by region 0% 9M y/y +6% 9M y/y 37% of sales +6% 33% 9M y/y of sales 20% of sales +8% 9M y/y 10% +5% 35% Emerging markets of sales 9M y/y 65% Developed markets +4% 9 M y/y 3
Slide 4: Household Care
Household Care 32% of sales 2% organic growth in the third quarter 9M y/y organic sales growth • Organic growth 9M 2018 y/y 0%; Q3 2018 y/y 2% 5% • Global customers remain focused on cost optimization – in line with expectations • Overall sales to regional customers maintained good momentum – China
Slide 5: Food & Beverages
Food & Beverages 29% of sales 4% organic growth nine months into the year 9M y/y organic sales growth 9% • Organic growth 9M 2018 y/y +4%; Q3 2018 y/y +3% • Food & Nutrition strong; Saphera® for dairy and increasing consumer health awareness 5% 5% 4% • Starch growing although Asian market impacted b
Slide 6: Bioenergy
Bioenergy 19% of sales Continued strong momentum for conventional biofuels 9M y/y organic sales growth • Organic growth 9M 2018 y/y +14%; Q3 2018 y/y +15% • Innova® Drive yeast technology well received; new yeast Innova ® Lift 23% launched in Q4 14% • Good growth across regions for conventional biof
Slide 7: Agriculture & Feed
Agriculture & Feed 14% of sales Solid performance in BioAg and Feed 9M y/y organic sales growth • Organic growth 9M 2018 y/y +5%; Q3 2018 y/y +10% 19% • BioAg driven by Acceleron® B-360/B-300 for corn, and timing • Sales to animal feed challenged but grew organically in Q3; market 8% conditions stil
Slide 8: R&D update
R&D update Animal health & nutrition Bioenergy Balancius™ Innova® Lift • Novel enzyme (muramidase) for improving • Yeast technology tailored to ethanol plants digestion and gut health in chickens with longer fermentation times • Estimated in-market sales potential of up to • Broadening of our range
Slide 9: 9M 2018 financials
9M 2018 financials Satisfactory performance • Organic sales growth at +4% (Q3: +5%). Key financials Realized Realized (DKKm) 9M’18 9M’17 • +5% organic sales growth in emerging markets and +4% in developed markets Organic sales 4% 4% growth • Currency impact on sales of -5% y/y. USD/DKK at -7% • EBIT
Slide 10: 2018 outlook
2018 outlook 2018 outlook; net profit growth increased to 1-3% • Organic sales growth likely to end toward the lower part of the 4-6% Key financials Realized Outlook (DKKm) 9M’18 2018 range despite Middle Eastern markets experiencing instability • Currency impact on DKK sales maintained at ~-3% Orga
Slide 11: Summary
Summary Satisfactory 9M; 5% organic sales growth in Q3 • Nine-months performance satisfactory; solid earnings • Organic sales growth likely to end towards the lower part of the 4-6% range despite instable Middle Eastern markets • Executing on strategic initiatives • Several impactful innovations ent
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