CONFERENCE CALL Q1 2015

Transcription

1 CONFERENCE CALL Q April 23, 2015

2 2 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, "believe," "anticipate," "expect," "estimate," "intend," "plan," "project," "could," "may," "might" and other words of similar meaning. Forward-looking statements are by their very nature associated with risks and uncertainties that may cause actual results to differ materially from expectations, both positively and negatively. The risks and uncertainties may, among other things, include unexpected developments in i) the ability to develop and market new products; ii) the demand for Novozymes products, market-driven price decreases, industry consolidation, and launches of competing products or disruptive technologies in Novozymes core areas; iii) the ability to protect and enforce the company s intellectual property rights; iv) significant litigation or breaches of contract; v) the materialization of the company s growth platforms, notably the opportunity for marketing biomass conversion technologies or the development of microbial solutions for broad-acre crops; vi) the political conditions, such as acceptance of enzymes produced by genetically modified organisms; vii) the global economic and capital market conditions, including, but not limited to, currency exchange rates (USD/DKK and EUR/DKK in particular, but not exclusively), interest rates and inflation; viii) significant price decreases on input and materials that compete with Novozymes biological solutions. The company undertakes no obligation to update any forward-looking statements as a result of future developments or new information.

3 3 Q Summary Q overall in line with expectations 8% organic sales growth, in line with expectations. Sales up 18% in DKK compared with Q % Sales and organic growth Q Q % DKKm 4,000 Strong growth in Agriculture & Feed driven both by performance and positive timing impact. Good contribution from Food & Beverages Uncertainty and challenging market environment in Household Care and Bioenergy Currency-driven EBIT margin expansion of ~1 %- point adjusted for The BioAg Alliance in Q % 8% 6% 4% 2% 0% 2,845 5% 3,033 3,579 8% Q Q Q ,000 2,000 1,000 0 FY 2015 outlook adjusted for currencies only Organic sales growth: 7-9% DKK sales growth: 16-18%, up from 13-15% EBIT margin: ~27%, adjusted from 26-27% Net profit growth: 11-13%, up from 10-12% ROIC: 25-26% 35% 30% 25% 20% 24.9% 709 EBIT and EBIT margin Q Q % 30.4% % 27.4% 979 DKKm 1,500 1, Capital Markets Days coming up May % 10% Q Q Q

4 Volatility in Household Care Household Care: growth fluctuates Current trading environment 30% 20% 10% 0% -10% Quarterly organic growth rates, Quarterly growth rates Annual growth rates Quarterly growth rates vary between -2% and +19% Annual growth rates between +4% and +13% 1. Dynamic North American market with trading-down and strong competition among detergent producers creates challenging market and focus on cost reduction of formulations 2. Certain emerging markets softer too 3. Continued strong interest in other parts of the business for improving wash performance and optimizing formulations using more enzymes 4. Organic sales growth in 2015 expected on level with 2014 or slightly below 4

5 5 Sales & Markets Q sales: DKK +18%, organic +8% Sales by industry, DKKm Q Q Household Care: Strong comparison in Q Soft Latin America sales. Dynamic consumer market tempers growth in North America Household Care 1,127 1,080 +4%/-2% Food & Beverages: Good performance across markets. Baking and healthy concepts the most significant contributors to growth as starch stabilizes Food & Beverages %/+5% Bioenergy: Continued solid growth supported by ~5% growth in U.S ethanol production. Low ethanol margins make market more challenging Bioenergy %/+8% Agriculture & Feed: Strong performance in both BioAg and animal feed. Positive timing impact supports quarterly growth figure Agriculture & Feed %/+40% Technical & Pharma: Sales of albumin and pharma enzymes were the main growth drivers along with wastewater treatment Technical & Pharma %/+4% DKK growth/org. growth

6 Q Financial Performance & Outlook Satisfactory financial performance Gross margin on par with Q Disregarding the net one-time impact from The BioAg Alliance, EBIT grew by ~20%, driven by underlying performance and currencies Net financial costs increased impacted by currency hedging Net investments & cash flow generation on track 2015 outlook adjusted for currencies only Returns to shareholders Dividend of DKK 3.00 per share paid out Stock buyback program of up to DKK 2 billion in 2015 on track. About 20% concluded 6.7 million treasury shares cancelled on March 27; New total share count = 313 million shares Capital Markets Days coming up May 5-6 Key financials Realized Q Outlook Apr Outlook Jan. 20 Sales growth, org. +8% 7-9% 7-9% Sales growth, DKK +18% 16-18% 13-15% EBIT growth +6% 15-17% 12-14% EBIT margin 27.4% ~27% 26-27% Net profit growth 2% 11-13% 10-12% Net investments excl. acq., DKKm Free cash flow before acq., DKKm 152 ~1,000 ~1, ,500-2,700 2,500-2,700 ROIC incl. goodwill 26.6% 25-26% 25-26% NIBD/EBITDA 0.0 N/A N/A 6

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