Novonesis (NSIS) Status Update summary

Business overview and growth drivers

• Energy is a key segment, representing about half of the Agriculture, Energy, and Tech group, which is 35-36% of turnover.

• Growth is driven by rising fuel demand, decarbonization, chemical replacement, and energy independence.

• Diversification spans end markets (e.g., DDGS, corn oil, sustainable aviation fuel), feedstocks (grain, vegetable oils, biomass), and geographies (North America, Latin America, India).

• North America remains the largest market, but Latin America and India are showing strong growth.

Innovation and market diversification

• Revenue sources have shifted from being U.S.-centric and enzyme-only to more diversified drivers, including geography, end markets, and feedstocks.

• Biomass-based ethanol and enzyme-based biodiesel are emerging areas with significant upside, especially in Brazil and India.

• Enzyme-based solutions now have about 10% penetration in the biodiesel market, with mandates in Brazil, India, Malaysia, South Korea, and Japan supporting growth.

• Innovation focuses on customer intimacy, tailored solutions, and continuous performance improvements (1-2% annually).

• New yeast products, such as Innova Eclipse, are being launched to further enhance efficiency.

Sustainable aviation fuel (SAF) and future opportunities

• Liquid sustainable fuels are critical for decarbonizing transport, with biofuels expected to grow through 2030-2035.

• SAF market development is expected in phases: initial HEFA dominance, followed by alcohol-to-jet (ethanol-to-jet) and advanced fuels.

• Biosolutions can play roles in pretreatment, ethanol-to-jet conversion, and supplying biogenic CO2 for e-fuels.

• If SAF captures 30% of aviation fuel, ethanol-to-jet could represent 7-27 billion gallons, a significant share of the current 30 billion gallon global ethanol market.

• Regulatory clarity, incentives, and technology deployment are key for scaling SAF.