Novonesis (NSIS) CMD 2024 summary

Strategic vision and market positioning

• Positioned as a global leader in biosolutions, leveraging the merger of legacy companies to create unmatched scale and capabilities across the value chain.

• Focused on addressing global challenges in food, health, and planetary sustainability, with over 80% of sales aligned to six UN Sustainable Development Goals.

• Committed to sustainable growth with a triple bottom line approach, balancing financial, environmental, and social goals.

• Strong advocacy, partnerships, and customer intimacy support systemic change and faster adoption of biosolutions.

• Integration of legacy businesses is ahead of schedule, with a new organization focused on agility, innovation, and customer-centricity.

Financial guidance and growth drivers

• Organic sales growth CAGR of 6%-8% is targeted through 2025, with ambitions to accelerate further beyond that period.

• 2024 guidance upgraded, with organic sales growth expected at the upper end of 5%-7% and adjusted EBITDA margin raised to 35%-36%.

• Margin expansion to ~37% adjusted EBITDA by 2025 is expected, driven by synergies, productivity, and value pricing.

• Sales synergies of €200m targeted by 2027, with cost synergies of €80-90m on track and 80% run rate achieved.

• Capital allocation prioritizes growth investments, value-adding acquisitions, and shareholder returns, with a 40%-60% dividend payout ratio.

Innovation, R&D, and operational excellence

• Annual R&D investment of ~10% of sales (~€400m), with over 2,000 science and engineering staff and 10,000+ patents.

• Proprietary strain libraries, AI-driven discovery, and precision fermentation accelerate innovation and cross-market applications.

• More than 30% of sales from products launched in the last five years, with 20+ new launches annually.

• Productivity gains of 2%-5% annually are achieved through advanced strain engineering, process optimization, and global supply chain excellence.

• Cost and procurement synergies, digitalization, and supply chain optimization are ahead of plan, supporting margin expansion.