CONFERENCE CALL Q1 2015 April 23, 2015
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. 2
Q1 2015 Summary Q1 2015 – overall in line with expectations Sales and organic growth 8% organic sales growth, in line with expectations. Q1 2013 – Q1 2015 • DKKm Sales up 18% in DKK compared with Q1 2014 11% 12% 4,000 Strong growth in Agriculture & Feed – driven both • 10% 3,579 3,000 by performance and positive timing impact. Good 8% 3,033 2,845 8% contribution from Food & Beverages 6% 2,000 4% Uncertainty and challenging market environment in 5% • 1,000 2% Household Care and Bioenergy 0% 0 Q1 2013 Q1 2014 Q1 2015 Currency-driven EBIT margin expansion of ~1 %- • point adjusted for The BioAg Alliance in Q1 2014 FY 2015 outlook adjusted for currencies only EBIT and EBIT margin DKKm Q1 2013 – Q1 2015 Organic sales growth: 7-9% • 35% 1,500 DKK sales growth: 16-18%, up from 13-15% 30.4% • 27.4% 30% EBIT margin: ~27%, adjusted from 26-27% • 24.9% 1,000 Net profit growth: 11-13%, up from 10-12% 25% • 979 +6% 923 ROIC: 25-26% • +30% 20% 709 500 15% Capital Markets Days coming up May 5-6 10% 0 Q1 2013 Q1 2014 Q1 2015 3
Volatility in Household Care Current trading environment Household Care: growth fluctuates Quarterly organic growth rates, 2008-2015 1. Dynamic North American market with trading-down and strong competition 30% among detergent producers creates challenging market and focus on cost 20% reduction of formulations 10% 2. Certain emerging markets softer too 0% 3. Continued strong interest in other parts of the business for improving wash -10% performance and optimizing formulations using more enzymes Quarterly growth rates Annual growth rates 4. Organic sales growth in 2015 expected on level with 2014 or slightly below Quarterly growth rates vary between -2% and • +19% Annual growth rates between +4% and +13% • 4
Sales & Markets Sales by industry, DKKm Q1 2015 sales: DKK +18%, organic +8% Q1 2015 Q1 2014 • Household Care: Strong comparison in Q1 2014. Soft 1,127 Household +4%/-2% Latin America sales. Dynamic consumer market Care 1,080 tempers growth in North America • Food & Beverages: Good performance across 921 Food & markets. Baking and healthy concepts the most +16%/+5% Beverages 797 significant contributors to growth as starch stabilizes • Bioenergy: Continued solid growth supported by 660 ~5% growth in U.S ethanol production. Low Bioenergy +28%/+8% 514 ethanol margins make market more challenging • Agriculture & Feed: Strong performance in both 649 Agriculture & BioAg and animal feed. Positive timing impact +43%/+40% Feed 455 supports quarterly growth figure • Technical & Pharma: Sales of albumin and pharma 222 Technical & enzymes were the main growth drivers along with +19%/+4% Pharma 187 wastewater treatment DKK growth/org. growth 5
Q1 2015 Financial Performance & Outlook Satisfactory financial performance 2015 2015 Realized Outlook Outlook • Gross margin on par with Q1 2014 Key financials Q1 2015 Apr. 23 Jan. 20 • Disregarding the net one-time impact from The BioAg Sales growth, org. +8% 7-9% 7-9% Alliance, EBIT grew by ~20%, driven by underlying performance and currencies Sales growth, DKK +18% 16-18% 13-15% • Net financial costs increased – impacted by currency hedging EBIT growth +6% 15-17% 12-14% • Net investments & cash flow generation on track EBIT margin 27.4% ~27% 26-27% 2015 outlook adjusted for currencies only Net profit growth 2% 11-13% 10-12% Returns to shareholders Net investments excl. 152 ~1,000 ~1,000 acq., DKKm • Dividend of DKK 3.00 per share paid out • Stock buyback program of up to DKK 2 billion in Free cash flow before 2,500- 2,500- 610 acq., DKKm 2,700 2,700 2015 on track. About 20% concluded • 6.7 million treasury shares cancelled on March 27; ROIC incl. goodwill 26.6% 25-26% 25-26% New total share count = 313 million shares NIBD/EBITDA 0.0 N/A N/A Capital Markets Days coming up May 5-6 6
Recommend
More recommend
