Novozymes A/S (NSISB) Earnings Call Transcript & Summary

So welcome, everyone. What a crowd. It's great to see you all. And both for those who are here in the room and those who are following us on the webcast. This is a very big day for us. It's the first Capital Markets Day for Novonesis. We have roughly 200 people here in the room. So we're very excited to see you and we're grateful that you've taken your time to be with us today. I will spend a few seconds on just the agenda and the message we want to convey here today. Our intention, it's threefold. First of all, we want you to get to know Novonesis management team; secondly, we want you to learn more about who we are, who is Novonesis; and thirdly, we want you to understand how we capture and how we accelerate growth even further. This is the management team, and you've likely met them before or you've seen them before because they're both from Novozymes and Christian Hansen's legacy companies. They'll be present all day, so you have time to ask questions and chat with them during the full day. The agenda for today, you've seen it before. It's a full journey through the value chain of Novonesis. The full management team will be present on stage and present their respective areas, as you can see. At 5:30, we will go upstairs. We will have a cocktail event. And it's either upstairs in the restaurant or it's upstairs on the rooftop terrace and that depends a little bit on the British weather. But right now, it looks okay. So hopefully, it works out to be on the rooftop terrace. The event is webcasted, but it's only for you here to ask questions. They don't have that opportunity. So you can ask questions here in the room. With this, I think I'm done. And I will leave the word to Ester, our CEO. Please, Ester.

Thank you. Thank you. Thank you, thank you, Tobias, and welcome to all of you. Welcome to the ones that you're here in person and also welcome for the ones that you're joining us and you're joining us virtually. I've been so much looking forward for this day. This is a good day. This is a day of pride. This is a day where we will share with you how we feel about Novonesis. Here is the day that we will share with you on how we are on the path to deliver on our promises and how we are starting the era of biosolutions. Novonesis is a unique company. A company that has created by the combination of 2 extraordinary companies that, together, they become even better, even stronger, even better equipped to develop the answers of today and the answers of the future, even better equipped to drive value for our customers, even value equipped to generate sustainable growing earnings for our shareholders. And we are on a very good place. We are well on track on delivering on our guidance on our commitment that we made on 6% to 8% growth CAGR to 2025. We're well on track, and we're recommitting on our ambition to accelerate growth after that. And the dated guidance that you saw yesterday, it feels like many long hours these days, yesterday for the upgraded guidance for this year on both upgraded on EBITDA and also the expectation that we're going to finish on the high end of our revenue guidance for 2024. This is another good point, showing comfort, showing we are on our good place on a really good path to deliver on our promises. And during today, you will hear from the team how and why. During the day, you will hear from the team why we're ready to make this happen. And I would like to maybe start with you showing why the era of Biosolutions is exciting and how we're already part of your lives. Either directly or indirectly, we are today already present in your life. Maybe you don't see us, maybe you don't feel us, but we're here taking care of you. If you look at the little tiny dots from this house, you see how biosolutions are already present in your life. How we are enablers of the goods that you consume, how are we making those solutions more sustainable, more efficient, biodegradable, how we're making them better for you. We're present in more than 30 different industries from the yogurt that you eat, to the recycled paper that you write in, to the fuel that you fill up your car, to the probiotics that you take. We are a crucial component of all the goods that you consume at the same time, a tiny component of the final cost. And there is -- maybe let me give you a couple of examples of what does this mean. 4 billion people already use detergents today with our solutions, either on washing their clothes or on cleaning the plates. In the yogurt and in the bread that you all eat, there's more than 50% chances that we are there enabling better texture, better taste, life extension. If you live in North America or in Brazil, there's an extraordinary high likelihood that when you go into a car, that gasoline has a component biofuel enabled with our solutions. Biosolutions enable sustainable agricultural. They turn those agricultural needs on those agricultural goods into value-added nutrients from healthier chickens to plant-based foods, biosolutions enable a clean label food preservation and healthy nutrients. We are already present today in your daily lives and we will become even more in the future. And when we look ahead and we look at the fundamental [indiscernible] that we see, we see the supporting need for biosolutions. A wider use of biosolutions can meet and provide the answers of many of the humanity challenges that we're facing today. Biosolutions will be a stronger enabler of those answers. The material use that we are consuming today has increased more than 3x over the last 5 decades and it's continued to grow 2.3% every year. Today, we are collectively using the resources 1.8x faster than the earth can regenerate. And when you add to that growing population, we're going to be 20 billion -- 10 billion people by 2050, then that gap becomes even, even wider. Fulfilling this growing demand, coupled with the growing population, capping with increasing nutritional needs, capping with more energy needs, it cannot be fulfilled with only the answers of the past. We need more. We need more answers. And biosolutions, they are going to be a stronger part of those answers of the future. For all of these challenges, for each of them there is biosolutions. Only if today, we would implement, we would commercialize to its full potential the biosolutions that already exist today, we would reduce the CO2 emissions by 8%. That's the same -- that's the equivalent amount of CO2 emissions that the whole Europe produces and emits. Biosolutions will play a stronger role on enabling those answers of the future. They will play a stronger role in enabling the society needs but at the same time, staying within the earth system boundaries. And we will do that by unlocking low-carbon, regenerative, circular and healthy products. So maybe you wonder, okay, that sounds very nice, but why is this going to happen now? Well, we live leave in a pivotal moment, at this moment, a moment of inflection. A moment whether technology, advanced analytics, technology advancements, they make that those answers of the future, they are available, they are affordable, they are ready today. A moment that we see also a pull, a pull from governments, a pull from society, a pull from geopolitical strategy supporting domestic industries, a pull from regulatory bodies considering the impact on how products are being produced and the impact of those products overall in the society, also a pull from an increasing funding going into biosolutions. The demand for biosolutions has only one way: up. It's growing because there is an increasing demand of healthier lives. There is an increasing demand for a healthier planet. And also, at the same time, it's not only about the healthier lives and healthy plan, it's also with energy savings with [indiscernible] costs, it's [indiscernible] on efficiency. So we continue to clearly, clearly see the potential ahead of us. But if we add numbers into this potential, maybe that's a little bit how it looks like. 60% of the world physical products of the world of today economy, 60% of those products could, in principle, be produced through biology. It's only a matter of time, but that's the way we're going. The technology is ready to do so. Biosolutions will be a stronger enabler of those products. It will be a stronger enabler of the foods that we eat and a stronger alternative to the fossil-based goods. If we take as a reference, the chemical and -- specialty chemical and the ingredients market, this is a market that has been built over centuries. It's a market that covers solutions from agricultural, agrochemicals, consumer goods, high-end ingredients, it's valued at $1 trillion and it grows more or less at the level of GDP. Well, biosolutions, they help us to reduce the dependence of fossils, the dependence of the solutions of the past. Biodegradable solutions that will replace and replace agrochemical, increase the yields, energy efficiencies and provide sustainable and healthy nutrients for the consumers and enable plastics to be recycled. Today, we look at addressable market of EUR 20 billion. That market has high margins. That market grows fast, and that market will continue to grow faster than GDP. And as we further penetrate within our innovative solutions, with our bio-based solutions, we expand the relevant biosolutions market for Novonesis. And we're eating our share firmly, swiftly, one step after the other into the EUR 1 trillion specialty and ingredients market. The bio economy is expected to grow by a factor of 7x within the next 2 decades. And we, Novonesis, we're extremely well positioned on making this happen. We are uniquely placed to back that change because we have all the fundamental drivers that you need. Our business is split between 50% human food and human health and 50% planetary health. That split, it gives us resilience. It gives us the capability to adapt because it will probably continue to be a very volatile world. We address the customer and the consumer needs through highly specialized fermented solutions. We master by technology as a pure-play. We are a pure-play biological powerhouse and we are not going to venture into any type of ingredients. During today's presentation, you will hear more about the strength of our portfolio, about the opportunities ahead of us and how we've now been together, how we've now with our broad and leverageable pure-play biological portfolio, how now we are even better equipped to develop those answers of the future and the answers of today. Jacob, Amy, Tina will go deeper and share with you for the individual commercial areas, examples on how we play with our customers, how we co-create and how we're now even better equipped to develop value-added solutions for our customers. Our technology and our solutions are agnostic. They're based on biology and they're agnostic of the final application. They are scalable and they are leverageable across multiple different markets. They also complementary and when we cocreate and design them simultaneously and together, they also boost effects. This -- exactly this fact. The fact that we are a pure biological players, that allows us to be focused, to be derisk, to have an efficient use of the investments in R&D, the investments in operation. And Claus and Anders are going to talk later about why and how, more examples, a moment of why being a biotech powerhouse gives us competitive and operational benefits. It's not only that we have a unique capabilities. It's also that we leverage across a broad range of segments, and that becomes every time being better. And by combining these 2 extraordinary companies, we have just created an even stronger one. We have just created an even stronger biotech powerhouse. We have access to a world-leading property and library strains, 100,000 strains that allows us for speed for higher impact and to develop better solutions for the market. We combine the front-end customer business with a state-of-the-art innovation. We bring artificial intelligence, we bring advanced analytics, and we have a unique capability to bring those solutions to scale. We have unmatched economics of scale across everything you need to win in biosolutions. The combination of the diverse market reach, more than 30 different markets, the world-class products, the R&D, the capabilities, the production areas, put that together, that makes us very unique. We have everything you need to master the path to connect market to value-added solutions, and we are extremely good at each of these steps. And you will hear more about this today. And it's important to remember that we're not starting from scratch. We're not starting from scratch. This is who we are. This is our joint company. This is our heritage. We have been more than 100 elders of legacy each building that strong capabilities. We are in an extraordinary good place, in a place of comfort, in a place with a backbone and the strong legacy for both companies, makes us an even stronger foundation. We know this was a good match, but we see it every day. And we see how 1 plus 1 can and will become more than just 2. We have a technology where it's second to none and combining this with the commercial sites, we're better for our customers. And with a very short period, we have shown how we are swiftly combining these 2 companies. And Henrik will talk about how good we're doing not only in the cost synergies, but also how solidly we're forming the foundation of amazing growth synergies and how we are creating the foundation of a really, really special company. And all this, it's underpinned with the firm commitment of the triple bottom line. Rainer, Morten will talk more about this. You will see that since 2018, we have reduced our CO2 emissions 63%. And at the same time, we have increased revenue more than 20%. We have increased our diversity. We have provided ESG capabilities to our customers. We're showing that it's possible to do both that growth, profitable, sustainable growth and sustainability, they not compete actually it's the way that you deliver long-term value creation when you combine the 2 of them. We are in a journey of a strong prioritization. We have been doing in the past. We will continue to be doing that. There is plenty of opportunities. That's not our problem. Prioritization will continue to be our area of focus. We'll continue to prioritize and choose where we invest and grow. We will invest what it matters. we will invest where it generates the highest returns, and we will invest where it generates the highest capture value creation for Novonesis. Prioritization, it's not only what we will do. It's also what we will do less. We will not shy away from closing projects. We will not shy away from tempering and sunsetting efforts. If it's not the right time, if the market conditions have changed, or if the environment is not the one that we came in. We will continue to use prioritization as the way that we work and we define who we are. We are recommitting to our growth expectations of 6% to 8% growth to 2025 and we are recommitting to our ambition to further accelerate growth after that. And we see continuity on those growth drivers that they have put the foundation of these amazing companies that the drivers of growth, we will have first grow with market, continue to grow with the markets that we present and at the same time, at the right price, being pricing a sustainable and continuous driver of growth. And we see this -- the component of market and pricing as an enabler of 3% to 4% growth from these factors till 2025. Penetration will be also a driver of growth with expectation to contribute around 1% until 2025 and then being stronger together being now a bolder company, being now even with more application centers with a broader global reach also on a stronger driver of growth in the future. Adjacents and upselling are and will continue to be a driver of growth. And that comes to the cross-fertilization of existing solutions that comes with the innovation and the broader toll books that we have. And we're expecting in adjacents and upselling to be 2% to 3% contributor of growth. So fundamentally, we grow, we drive accelerated growth by growing with market, by price and by delivering value to our customers from innovation, from our board portfolio, and therefore, that's how we increase our share of wallet. We make the market, we ground the rules. We break the ground and then that's what enabling us to outgrow the underlying markets. The explorative opportunities such as plastic or carbon capture, that's not part. That's not expected to contribute in the near term. So altogether, we are in a very good place to deliver on the 6% to 8% growth until 2025. And as the growth synergies materialize, that will drive the accelerated growth after that. And additionally, add the potential for explorative growth opportunities, that's a further upside that it will come at -- not at the near term, but we will start materialize making an even stronger parameters on our growth algorithm. We are in a very good place. We feel really, really good. And maybe to summarize, maybe that will be the way of summarizing on what you're going to go through today. This is a strong biotech powerhouse, the one that we have created. And today, you will see from the team, the foundation on why we are the company who's starting the era of biosolutions. You will hear more why the world needs more biosolutions. You will hear more about the breadth of biosolutions that we have them readily available. You will hear more that we have the structure, we have the platform, we have the insights, we have the R&D, we have the capabilities. During this last little bit less than 5 months, I spent time with colleagues, I spent time with customers around the world, I spent time with stakeholders around the world and I feel that excitement, I feel that inflection point, I feel the pull that they want to be part of this journey. And that's what I'm inviting you to be with us in this journey, hear it from the team, from all of us. And before I'll pass the word to Morten, who is going to guide you on how we're building our world with biology. Thank you.

Good day, everyone. And thank you, Esther, for teeing up this session. I will talk a bit to how BioSolutions is going to meet our customers' needs and society in general and all the elements of a healthier planet. We'll do so by introducing our new sustainability ambition of people, planet, positive. But now let me take you through what we mean when we say better our world with biology. Our business at Novonesis, we have a footprint and a handprint. Our handprint is how our products in increasing the value for our customers and our footprint pertains to our use of resources. We see solutions rooted in biology are key to addressing some of the challenges that our customers are demanding and the world is facing. Our solutions, they transform products and processes to increase efficiency, sustainability and performance and all enabling better business, a healthier planet and a healthier life. On the slide, you see 3 of such technologies. Let me just talk to one of them, our bioprotection. We have, over the last 8 years saved 1 million tonnes of yogurt, which actually more or less equals the annual production of yogurt in France. This is a technology that Novonesis has created and has seen steady inroads into the market. For me, this is a brilliant example on how a sustainable solution can address food waste in our value chain and at the same time, be a positive contribution to consumers' wallet, climate and creating business. And biosolutions do not only have significant commercial impact. They also have significant impact on people and planet. We have critically reviewed our portfolio. We have seek documentation for efficacy across our offerings. And we are today here able to say that these 6 United Nations sustainability goals actually are directly impacting healthier life and healthier people via biosolutions. And today, 80% of our revenue is supporting these 6. I see this as a great example on how business is having a boom while we actually have the ability also to serve our customers and better the world. And biosolutions needs to have a place in the world to be able to continue the uptake of the use. Therefore, is a key element for us to continue to invest in removing the barriers for the green transition. At Novonesis, we invest in correlations and partnerships on a global level with our key stakeholders to change and move these barriers. We see great proof of this across our key markets. In Europe, the EU Commission has initiated projects for biotechnology and biomanufacturing. And in U.S., the Congress has appointed a special committee to focus on biotech and biomanufacturing. In China, the government has set forward and singled out bioeconomy as its 14th 5-year plan. As an industry leader, we continue to qualify and promote biosolutions and advocate for the role of the green transition. Because at the core of our solutions, our business and our purpose is the ambition of creating a positive impact. This is why we today are going to launch our sustainability ambition of People Planet Positive, a frame for our future sustainability efforts. With this ambition, we want to positively impact people and planet in everything we do from our solutions, to our operations and to people at large. The ambition is a tool for us to speak to what our solutions offer customers, the world as well as how we address our own manufacturing and value chain. When we look to the world, we see 5 societal agendas where biosolutions will greatly impact and drive it forward, as shown with our handprint in the examples before. And the greatest positive impact Novonesis can have at the world is to deliver great innovations addressing these 5 agendas. Claus will speak more to this in a later session. But equally, we need to be responsible throughout our footprint. Anders will also speak to this in his piece. And people positive speaks into the culture of Novonesis. I am particularly proud today to stand here and talk to that we actually have a very strong foundation after only 5 months in creating a home for talent, for people with ambition and drive. With this -- the better our talent and to better our ability to collaborate, the better our culture, the more successful we will be. We are running monthly surveys with our employees, and we are seeing an overwhelming positive buy-in on our culture as well as the overall engagement of this combination of the companies. I must say, it's a tremendously proud to continue to see the development of our organization, of our culture, and it's a testament to the direction of the leadership team that has been put forward. Secondly, we have also settled the full organizational design. We have implemented a market-driven approach by increasing our leadership positions close to markets and customers. Secondly, we have set a strong organization where we also have increased our diversity agenda. I am really looking forward to the next month and years to continue to see the development of this engagement and the culture of Novonesis. As Ester mentioned, then we are committed as Novonesis to our triple bottom line. To measure the progress of our own footprint, we are also a part of this being measured against the long-term incentive program for senior management. And we are putting forward these targets to further enable us to look at both people and planet and as we are progressing forward with our footprint. As Ester mentioned, then we have significantly reduced our combined greenhouse gas emissions by 63%. One thing is doing it in relative terms. Another thing is to do it in absolute terms while you are growing. This puts forward a significant strength on a challenge to our footprint, which Anders he will talk into in his session. And let me just finalize here this session now. At Novonesis, we better our world with biology. We deliver transformative solutions that are creating value for our customers, for healthier planet and for healthier people. At the core of Novonesis is sustainability. We actually see value resilience and leadership in being people planet positive. And then we drive and push for change that enables a faster uptake of biosolutions on a global scale.

So with this, we are ready with our first Q&A session. So I wonder if there are any questions Yes, I can see it here in the front, Andre? And please limit yourself to one question. I would say that as well. So thank you.

So Andre from Danske Bank. I just have a question regarding your 2025 targets, more about the longer-term accelerate growth beyond 2025. So can you be a bit more concrete, what should we expect -- is it 10%, is it 9%, what is it? And if not, why can't you give us more concrete target as already now?

Thank you, Andre, for the beautiful question. Yes, we can be very concrete. It's going to be accelerated after 2025. And I can also be more concrete on why it will be accelerated and the trust that it will be accelerated. It's going to be more of the same but better. We're going to continue to grow with markets. You will listen and hear Tina, Amy and Jacob showing why we are outgrowing the market. We capture it. The good momentum continue to drive that acceleration. We're going to be better on penetration. We're going to -- we're stronger globally, we combined 2 companies. And now the way that we go to our customers in emerging geographies with more sales force, with more application centers with stronger capabilities, that makes us a better partner for our customers. And that we will bring existing solutions into new customers. That's how we expand the pie. We grow the share by making the pie bigger and being the one driving it. And we're going to also be stronger on growing from adjacencies and value selling and we become now even better equipped with a broader toolbox to do. Here's what we have the cross-fertilization. We bring more enzymes into dairy and then generate more value for our customers. We bring cross-fertilization in silage with enzymes and micros. We bring cross-fertilization in probiotics. We bring HMO and BB-12, but then also with the capabilities of an amazing biotech powerhouse that knows how to ferment, precision fermentation and how to do that in a strong muscle and heritage. That's the adjacencies that will become even better and being stronger. You will hear Henrik saying that we're expecting the growth synergies contribute to 1% accretive. So when you put all that together, that's how we win. But the most important part, people. We have an amazing foundation of the talent that we put in place. And I would like maybe you more than to put a little bit more color on that and why we are the ones going to make it happen.

But I think the why is the 10,000 people that we have at Novonesis, but also the commitments and the engagement levels that we are seeing as we are traveling around as you're saying you're meeting key stakeholders and employees globally. There's a strong, strong belief. There is a strong connect to our culture. There is a strong connect to engaging and understanding and bringing these organizations together. And I think that is really the value of where we are benefiting in the long run.

Clear, Andre?

Not really.

Just wait with us. We will come with an updated guidance at the end of 2025. The purpose of today -- we put in the dots. We're showing you comfort. We have our house in order. We're putting the dots of what that growth will come and will come with an updated numbers. But just bear with us, as we go in that direction. And actually, the updated guidance that we made yesterday, that should give you comfort, then we're moving in the right direction.

Thank you for that answer. We have another question here.

Vikas from Generation. So you made it clear today and you've been talking about it why many, many industries, why the world needs more of these solutions, yet the penetration is still so low. Can you articulate what are some of the key hurdles in driving that penetration higher? And what are you doing? You mentioned you're advocating as well on global stage. Could you just go a little bit deeper into that?

Gladly so. First, we're growing 6% to 8%. That's pretty good and also very profitable margins. So I would maybe just be a little bit pleased also we are -- with that continuum. But I agree with you that we should aspire for more because the potential is enormous. It's this $20 billion addressable market that needs to continue to grow much faster than GDP and eat the space to the solutions of the past. We are breaking ground in many places. Take HMO, that's the best solution that exists today for infant formula, not only for good health also for brain development, but it takes 5 years to register it in China. That's the time that it takes to go through the registration. We're moving firmly. We're getting there, but it's a journey that we have to go together with authorities. Take microbes to replace fertilizers, it takes up to 8 years. Don't forget that we bring solutions they are produced locally. So there is a decoupling deleveraging, decreasing your exposure from fossil base or from dependents from other countries. And then there is a component of wealth for every job that you create in biosolutions, there is more jobs that they create in downstream on the value chain. And we bring that narrative and we explain how good looks like, and we explain what are the roadblocks and we're getting really good dialogue. Then it's not happening in a day. This is why it's not happening maybe as fast as we all want. But definitely, it's moving on the right direction.

But we are bringing that documentation of efficacy to the right stakeholders and decision-makers and enabling that connect between what actually the [indiscernible] are able to do and bring that forward in a safe manner is where we can go in and influence in the regulatory path and making sure we have an ecosystem that values bio-based equally to fossil-based as well.

Thank you. I think we have another question here. Charles here.

Charlie Bentley, Jefferies. So just the -- that organic growth breakdown, there are a number of components within the base of that 3% to 4%. It was market growth, it was share and it was pricing. I mean market growth and some people would say that some of your end markets grow maybe 1%, maybe 2% share. You've got pretty good share of a lot of your end markets. So, it suggests that pricing might be a quite meaningful component of that. Could you kind of talk to those different components, how you see pricing going forward, the ability to continue to have that as a net positive contributor to the growth stack?

Let me just repeat your question and say, yes, pricing will be a net positive contributor moving forward, consistent positive contributor. Then it's not going to be 5% every year, but it's going to be a positive contributor. We're expecting pricing to be on the component of 1% to 2% in an aggregated or stabilized way. Then important also to mention the way that we grow, the way that we win, it's volume and then volume at the right price because price, it's how you make sure you have your fair share of value with your customers. We bring in value-added solutions. Don't forget that we are, in many cases, 1%, 2%, 3%, 4% of the final solution cost, but bringing massive value for our customers, higher yields, lower energy, clean label. You will hear Amy, Tina, and Jacob showing and decoupling exactly your question, I would like you to hold a little bit, give them the -- also the chance to explain it much better than me on how in every single market, we're going to grow above market, why? And what is the value we're bringing in and why we are the partner that our customers willing to play and grow with us.

I think we have time for one more question. So I think, Chetan, you were a little bit earlier.

Chetan from JPMorgan. You talked a lot about cross-fertilization. I'm just curious because we usually are very, very cautious on taking your word on revenue synergies because they never come in most cases, sorry. But not for Novonesis. I'm just generalizing here. But can you give a sense of how much of the 2 companies' products actually talk to each other today? So let's say, in different markets when you sell your enzymes, how much of the end products also have the products from Christian Hansen today or vice versa? Just to get a sense of what is the cross-selling opportunity.

You will see a lot of examples today. Maybe I will answer with these 0 seconds that we have. The principles of why this is happening. Take dairy, we are super good at dairy. We know how to maximize value creation for our customers, how to make [indiscernible], how to make more protein in the final yogurt, how to make more of the same, how to make more from the same. Then we have an amazing library of cultures that we know how to generate higher yield. We know how to make more preservation. Now we bring -- and we were using enzymes already. Now we bring much more many enzymes, who give you the texture, the form, the acidity. We have a much broader way to play with our customers. So that will be an example that we're already playing, but now we bring much more money. If you take silage, we have mainly only cultures, but then we're also bringing enzymes that they can let and boost together how that feedstock is going to be more edible for the animals. If you take probiotics health. We're making cross-fertilization. We both have microbes. Maybe 1 had most spore formers. The other one had more microbes, but we had unique products that when we bring them together, we connect and we enhance the share, the addressable or the reachable share of each of them. It's all this together, what makes me confident. And I invite you just to keep watching us, just watch and you'll see. You'll see how they come. You'll see today the examples that it's really happening. And you'll see Henrik telling you about the pipeline and the trust of why it's going to materialize. We and not changing the customers' behavior purchasing. We only bring them answers that they were rather looking for and now we connect them in a better way. This is maybe a little bit different from other type of combinations because we not ask our customers to change their behavior of purchasing. We simply bring them better answers from their needs, clean label needs that were already there.

With that, thank you, Ester. Thank you, Morten, and we will continue with the commercial areas in Novonesis. So I will ask Jacob and Amy and Tina to join me on stage. And I will leave this podium to you, Jacob, and enjoy.

Welcome all to the fantastic universe of biosolutions, food and beverage biosolutions here in Novonesis. Every single day around the world, people consume or several billion people consume something with a Novonesis ingredient inside. Probably many of you already at your breakfast table or out of the launch had a little bit of a bite of Novonesis inside. Think of it, we are already in more of the world's half of the cheeses, half the world's yogurts, in fermented meat applications, in an abundance of great bread, in coffee, in juice. And if you didn't make it at the lunch table, you might join me upstairs later for a beer and wine, where we could also be inside. Today, I hope to give you a confidence that we actually have a unique match between the food and beverage, consumer and producer trends and how unique biosolutions toolbox. I also want to give you an idea of the differentiated business model that we have, a deep industry application know-how and lasting and deep relations with our customers. We have a track record of commercial execution and with just in front of us a very tangible opportunity pipeline. We believe have high confidence that we are generating sufficiently higher growth than the underlying markets, both in our core applications in meat, in dairy, bakery and beverages, but also taking some techniques into adjacent opportunities, bioprotection, probiotics more broadly in functional food applications and in the emerging plant-based space. In addition, we see that now bringing the complementary portfolios together. We can provide even stronger value propositions to our customers. That's already confirmed in so many meetings I've had with them. That means that we can generate even an accelerated growth opportunity. Let me start by going into that unique biosolutions toolbox that we have. Novonesis is uniquely positioned and also differentiated to competition with a biology only toolbox. We have the leading portfolio within enzymes and microbes and now combinations of both. We use these technologies to transform any raw material, whether it's milk, meat or plant bases into a great tasting food and beverage product. The consumers are looking for simpler, more cleaner labels, health improvements, improved sustainability footprint and affordability is always critical to them. And then probably as many of you in agreement, as consumers here in the audience, texture and taste, we never compromise on that. The producers want to fulfill those needs of the demand of the consumers. But they're also looking for yield improvements, cost reductions, avoid CapEx and also reduce the sourcing complexity of the things they buy in. They want to reduce waste and really take an improvement of their sustainability footprint. We have the strategic ingredient portfolio to make this happen. The ideal product is really a raw material base and then biology. And the cost of applying this is marginal to the value we actually provide. So there's plenty of opportunities for us to create value and generate growth. Let me exemplify this with 2 of our major categories, bread and yogurt. Over the last decades, we have helped producers cleaning up and simplifying their labels by applying biosolutions. When I started in this industry around 20 years ago, many products included a long complicated list of ingredients. Gradually, Novonesis have over the years helped to innovate this space with microbes and enzymes respectively. Today, we stand with solutions that can get us to a fully clean label, just meat, milk, wheat and biology. You can think of us removing pain points and adding benefits. Removing would be stabilizes and still have a great texture, removing chemicals and still have a safe product with longer shelf life. We can remove sugar and still have a sweet taste to the product. We can add in culture to improve the flavor. We can add in enzymes and cultures to improve the texture. We add probiotics to improve the health of the product. And then we are on a journey with bioprotection to improve the shelf life and reduce food waste. Morten talked about a good example already in the dairy industry. Let me talk about bread. It's clear that we can see with a product bread with or without enzymes, get a much higher quality of the bread. And with an extended shelf life, it actually leaves you as a consumer the opportunity to consume the full product. We made a rough estimation of when we launched this product, 25 years go, how much bread have we actually saved to the world. If you stack that up on top of each other, it actually takes you all the way to the moon and back 10 times. That shows the power of our biosolutions. In our current sales, we rely a lot on leading positions in dairy and baking, but we also have leading positions in beverages, beer, wine, fermented meat applications and the plant-based space. Some of the macro trends that Ester talked about are also relevant for this sector, but let me go a little more into the details of that. Underlying growth in volume of these markets that we serve, we expect to get a 1% to 2% underlying growth. But it's really about what are the biosolutions going to grow. There are so many of the world's trends that point to the fact that biosolutions will substantially outgrow the underlying markets. And with us taking lead with our innovative portfolio and the strength of our company, we will believe that we can significantly outgrow those underlying markets. Let me take you through this growth model and talk about some of the components that's going to generate that growth. First of all, we will have that solid base of underlying market growth that we follow with our leading market shares. We will take pricing, inflationary pricing, but also value-based pricing. And share is also a component that I have expectations for. Penetration, we have been on a journey with the dairies where they have outsourced their manufacturing of [indiscernible] cultures with us for a long, long time. There's still a long journey for -- to capture more here. Look at the cheese industry, they're only 60% penetrated, and we have so many relevant solutions to take a bigger share of that. Also recently, we brought a new concept to the market where now beer makers can actually outsource the production of yeast to us, something I see great penetration opportunity with. And then, of course, we take the depth of our innovative capabilities to upsell to those existing strong relations we have with customers, upselling, bringing more innovation, something I'll talk a bit more about. And then there's the adjacencies where I talked about bioprotection. I talked about probiotics more broadly than leading position in yogurt a plant-based opportunity where we will also generate strong growth. You're probably left with the question, how are they going to do that? How do they differentiate to competition out there? Ester mentioned 3 competitive advantages, of which my colleagues will talk about the depth of our science of our innovative leadership and about the supply superiority that we have. I will talk a bit more about customer relations and our commercial model. We benefit from a network of more than 1,000 food and beverage experts, and we are talking experts with deep industry application competence all over the world. They have long-lasting relationship with the customers. There is a major difference in food and beverage expectations around the globe. Imagine how many different types of breads and cheeses there exist. There's differences in raw material. There's differences in the way they produce and the expectations to taste. All customers around the world want that secret recipe that just fits them. So there is a high benefit of meeting the customers with an industry specialized local technical sales force just in front of them and then couple that with a network of application centers with deep application expertise. And also pilot facilities where we can co-create with the customers with their local milk or wheat and co-create prototypes with them. This is so important to us that we have invested quite heavily in this setup the last few years across Turkey, China, U.S., just to mention a few places. And last week, we inaugurated a state-of-the-art meat and prepared food application center in Germany. And within the next 6 months, we are opening our state-of-the-art application center for dairy in Denmark where we will double the capacity of our throughput, and we will also add new capabilities to making dairy even stronger, prototypes even stronger. We also use this network to support the customers with after technical service support. For example, in the cheese industry, we receive every year 60,000 samples that we analyze and in return, the customers get access to a digital dashboard where they can monitor the progress of their production on a daily basis, very valuable input to them, very valuable input for us to accumulate. We've tied this all together with 1 commercial model, harmonize best practices of how we work, gives us a sharp productivity, good sharing of best practices. It also gives the customers harmonized service all over the world, something they appreciate a lot. You can see we are benefiting from strong Net Promoter Scores and many of them award us with the #1 supplier award. We are so deep in some industries that we actually get scale in the insights that we have. Here's an example of the dairy industry where we actually have an almost complete map of the dairy ingredients industry, from the country to the customer, to the individual plant level, we have mapped out what are they producing? What ingredients do they use? How much do they use? What are their pain points? What are the opportunities? Who are the decision-makers around that? We can accumulate that up to drive a sharp strategy strapped in input to innovation. And when that come back with good innovative new solutions, we know exactly where to target it very effectively at the specific plant level with the right decision makers. What are some of those solutions we bring back to the customers? I brought some examples here in the core industry of what we serve. It's both about innovating new products and it's about improving productivity. The first example is the beverage industry, where we have worked to improve and optimize traditional beer, but we have also helped them get into some of the new growth segments, light beer, low alcohol, no alcohol beers. We also help the beverage producers venture into complete new categories like Kombucha with probiotics. For the process improvement, look to dairies and bakeries, they have quite thin margins. So just a little small 1% improvement of the cost of goods sold matters a lot to them. And look at what we are sharply providing here, sugar reduction giving a strong improvement in the cost, upgrading flower for bakery production or getting more out of milk in production of cheese. I also talked about some of the adjacent opportunities, and one of them that has been adjacent and high growth for us for quite some years is in bioprotection. We already have an established high growth in the segment of dairy, where we're inhibiting yeast and mold, extending shelf life, improving the quality of the product. So more is eaten like Morten mentioned, how much food safety we are preventing. In meat, we are inhibiting Listeria for a more safe product. In bakery, enzymes has always made better products extended the shelf life. But now we're exploring what could be the opportunities if you apply some of those microbial ideas we have. And we have reserved some R&D capabilities to explore that topic. And then all of them are directly applicable in the plant-based opportunity. In functional foods, we have worked with probiotics for so many years, establishing a leading position in yogurt. It's only 1/10 of all yogurts that contain probiotics. So there's more to capture there. But we are also venturing into new categories. In [indiscernible], you will find a couple of examples, chocolate. And you will find the [indiscernible] new innovation we brought to the Chinese market. And we are also exploring opportunities huge. And then finally, the plant-based space. I would think of it still in the early stages with very high potential. I talked about the bread and the journey with yogurts. You could foresee a similar journey where we would help producers get to a more simple label, where it is about a raw material with high sustainability ability, affordability and biology only. It needs to taste great for consumers to come back. We are working on a major unlock to drive substantial growth there. And this is where the combinations of microbes and enzymes is a major synergy opportunity. Talking about synergies. I just outlined 4 or 3 cases here. We are 4 or 5 months into Novonesis. I'm pleased to confirm that the first objective was to create continuity with the current customers. They really appreciate that we didn't drop the ball on our commitments we already have with them. We have also built a highly engaged organization. And together, they have formed the portfolio of great synergy initiatives, some of them we are already progressing with taking the cheese industry where we have launched 2 new enzymes to the cheese market already, and we are invoicing this after 4 months, quite impressive start for me. In peer, we are starting the cross-selling journey, where some of the innovative solutions we have in yeast is brought into a bigger audience in beer making today with quite promising opportunities. And then I talked about the plant-based space, where it's just a unique combo with microbes and enzymes. Here, just 2 weeks ago, the team came to me and said, we already are ready to file a patent for a combo solution in plant-based and I was like wow, that takes it from PowerPoint in a microsecond to action, which is really something I like. I was also asked to dream a little bit big. And see what is it on the more long term, we could generate a substantial growth? Have 3 cases with me here. First of all, it's about the industrialization of yogurts. If you think of the Turkish yogurt market, they have a high tradition. They have a fairly strong industrialization level. If you get the rest of the emerging market to that level, you can triple the size of the yogurt potential. The second case is us going in now with solutions for beer makers to outsource their productions of biosolutions to a company like us. We are breaking good ground on it. If we think of us replicating the dairy transition and getting to a penetration of 50%, we're tripling the market for biosolutions in beer making. And finally, it's a concept of thinking more holistically about us having these strategic Biosolutions ingredients only claiming a marginal cost of 1% to 5% if we could think of the opportunity to stretch that strategic value we provide to a level where we claim at 10% and more, then you holistically would quadruple the entire biosolutions market. Let me take us back a little bit with the helicopter and land here in the presence and round off the presentation. I hope with this presentation that I've given you a good understanding and confidence that there is such a unique match between consumer and producer food and beverage trends and what we have in our Food & Beverage biology toolbox. We have a differentiated business model with an in-depth application know-how, strong customer relations. We have a track record of commercial execution. And just in front of us is a wealth of great opportunities we're ready to execute to drive substantially higher growth than the underlying markets, both in core and adjacencies. And the complementarity of our portfolios that we have put together provides an even stronger value proposition to customers, and we know it's going to facilitate an accelerated growth for Novonesis. I hope that you, as consumers and investors will join us on that exciting journey. Thank you.

So as we move into this next section of the presentation, we are focused almost entirely on the third United Nations Sustainable Development goal with which Morten showed earlier, which is good health and well-being. The focus of our Human Health Biosolutions business is to support better health, wellness and nutrition for people around the world. And we do that across all elements and timeline throughout the life cycle and all stages of life. So we start with infants and children, where we bring the composition of infant nutrition closer to that of mother's milk with our ingredients. We're able to bring supplementation that helps the development, healthy development of brain health, immune health, gastrointestinal health at early stages of life. In adulthood, we continue on that journey, bringing specific health solutions to target specific health outcomes and challenges. So think about, again, gastrointestinal health, think about immune health and development, but also getting more precise and specific around oral health, women's health and even through the impact of the gut brain access, impacting mood, sleep and stress management. And we also bring solutions for preventative health care, where we start to target, whether it's specific solutions for medical nutrition for specific needs, or even the ability through probiotics to remove harmful substances from the body, and I'll speak more about that later. The role which biosolutions can play to impact health and wellness is still evolving and the potential increases every year. As humans, we are made up of trillions of microbes, and that makes up our microbiome. And the understanding of how that microbiome impacts our health and wellness is increasing year after year. We've been accelerating over the past decades. And if you look only 20 years ago, you would have maybe a handful of 20 studies being published every year on this role and the impact of the microbiome to influence health. We're now publishing more than 1,600 a year as an industry. So this is a real acceleration. And every year, we learn more about the potential to impact health and wellness. This impacts us in many different ways. I referred to some earlier. So women's health, gut health, immune health, oral health, but the increasing understanding as well of the gut brain access, where you realize that microbes in our stomachs impact the way our brain functions, the way our cognitive development or cognitive capabilities as well as our ability to influence stress, mood and sleep. So this increasing understanding is a key enabler for us to understand the potential of biosolutions. And obviously, as that scientific understanding grows, the market potential grows along with it. In addition to that science driving growth, there's also a lot of key macro trends and drivers, which are driving growth in the market. Our Human Health business is composed roughly 75% of dietary supplements. So this is both in the form of ingredients sold to customers to formulate with and also in finished format dietary supplements themselves. The remaining 25% of our Advanced Health & Nutrition business, it's smaller today, but this is one of the big growth drivers that we see going forward. The primary focus of that today is on infant. So it's our HMO business and our probiotics business which complement ingredients into infant and children's formula. But we also see the potential to apply precision fermentation, particularly in this area as a key growth driver for Novonesis going forward, and I'll come back and speak beyond -- the impact of that beyond just this infant and children's space. There's also these macro trends of just -- and I'm sure everyone can relate to that themselves as increasing consumer awareness about the importance of health and wellness, along with that a willingness to pay for solutions for preventative health and wellness being more proactive and an increasing awareness of the connectivity between what we eat, the environment that we live in and the health and wellness that we experience. So these strong macro trends are really the key drivers, along with the development of the science of the growth that we see for this potential. So if we look -- starting at the beginning at the dietary supplements and vitamins, it's a very broad market. Here, you see that actually growing quite attractively at around a 5% growth globally. If we then narrow in on that to the probiotic supplements market itself, that is growing even more advantaged at about 7% a year. Maybe what's interesting, particularly about the conscious choices that we've made around our portfolio is that we've consciously chosen to target specific health areas, which demonstrate higher than market average growth. So you see that here in terms of our focus on infants and children, our focus on mental health and well-being, women's health, immune health, all of these are markets where we actually see higher than market growth. And this is where we bring solutions to date to the market, but it's also where we're focusing our pipeline and future development. So the breadth of this Novonesis portfolio is unique, both in terms of the novelty of solutions, but also as I just said, the focus in the different health categories, which we participate in. And maybe let you -- let me walk you through a little bit more in terms of the solutions that we bring today. So in this chart, you see on the left-hand side, the various solutions that we have in our portfolio today and across the top, the various health categories that those are relevant in. So if we start first with our probiotics product offering. We have an extremely broad range of probiotic offering, which is critical because it allows our customers to formulate with us to bring novel solutions, differentiated solutions to the market to target different types of health outcomes. We have within the scientifically documented patented strains, which we call our patented science strains. And these are the ones which help our customers to develop claims, marketing claims, scientific claims to really be able to differentiate in the market. We also have broader, less strain-specific documentation around our powered strains. The importance of this is that it's a full portfolio that really allows our customers to work with us to formulate, to create different combinations for a specific market focus and differentiated outcome on the market. Within these and you see the various sort of hearts across the top of where we play some where we have real leadership positions, some which are more emerging, the interesting is that we have some strains, which are very broadly documented to bring a wide range of health benefits, which has been clinically proven across a number of different health outcomes, general health and wellness. We also have some which are very specific to a specific mode of action, which allows a really targeted approach, which is differentiating on the market. If we go to spores and post-biotics, these are interesting because they are easier to formulate with. They're more stable to formulate with and they allow customers to bring probiotic solutions into a broader array of different products. So that could be in the form of gummies instead of a traditional capsule probiotic. It could also be, as Jacob referred to earlier, into functional foods and beverages. Synbiotics is very in interesting emerging space where we look at combining prebiotics and postbiotics to bring together both -- think about this as saying you bring the microbe with a desired impact, but you also bring with it the food, which it needs in order to thrive. So you create a complementarity across a combined solution, which actually enables to increase efficacy of the solution. And then, of course, we're leveraging our knowledge and enzymes to make sure that we are bringing enzymatic solutions as well into the human health space. This could be digestive enzymes. It could also be we have targeted enzymes for oral care and fresh breath. And I think actually in the bag that you received this morning, you have an example of some of those enzymatic solutions for fresh breath. Then, of course, our human milk oligosaccharides, which I'll come back to later, but bringing infant formula closer to mother's milk. And our newest investment area of precision fermentation for advanced proteins and advanced health and nutrition, which I'll come back to in more detail later. So this breadth of solution portfolio is incredibly relevant and unique. But what really differentiates it and where really we lead our conversations with our customers is the science that backs it and supports the claims that we make. So every conversation that we have with the customer starts first with science. And our sales teams are joint teams with salespeople who build relationships and can open up opportunities supported by scientific advisers who bring the robustness of the understanding of the science to be able to be a true partner in the development of solutions with our customers. We have and this is specific to Novonesis, we have published 250 clinical studies and we have performed a number of real-world and consumer studies involving more than 27,000 consumers around the world. And it's that science that's been generated by that investment, which forms the basis of our sales activities. Maybe let me give you a few examples to bring it to life, some of the findings that we have from those clinicals and scientific studies. So our BB-12 strain is -- our probiotic strain is the most clinically documented Bifidobacterium strain in the world. It has been demonstrated to have a broad range of health benefits from gastrointestinal to infant health to cardiometabolic health and brain development. Our Eurex product is a probiotic that has been proven to reduce yeast overgrowth in women’s vaginal flora by over 73%. Maybe of particular interest to the audience in the room here today, our ProbioBrain strain has been proven to work via the gut-brain axis to reduce the cortisol response output in response to stress. So reducing stress and allowing better moods, stress management and sleep. And you actually do have another example in your goody bag of that one, which is actually in a chocolate format. So as Jacob referred to earlier, and that one piece of chocolate actually contains a daily clinical dose of ProbioBrain. I forgot to mention it also in the bag, you actually have a combination probiotic, a 1-month supply of LGG and BB-12, our 2 most clinically documented strains, which have been formulated for general gut health and wellness. And then of course our 5 HMO mix which has been clinically studied to show the benefit that it beneficially modulates the bowel movements of infants, shifting the behavior of infant formula -- of formula set infants closer to that of breastfed infants. It's also been shown to increase the abundance of good bacteria in an infant's gut and it actually reduces the abundance of opportunistic pathogens. So this scientific evidence is absolutely key in our customer dialogues. It builds -- it allows our customers to build scientific differentiation and to build marketing claims. And I hope the examples that I've given you -- give you a bit of a chance also with consumers to understand the relevance and the importance of the breadth of the portfolio that we're able to bring as Novonesis. So we have this extremely strong and broad portfolio. It's backed by science and we continue to invest in the science to continue to support it. But there's one last link of the puzzle, which is exciting as we create Novonesis. And that is how we work with our customers and the service we're able to provide our customers to actually make this product portfolio relevant. And this is really -- this last puzzle piece is this end-to-end value chain that we bring together in the new combined Novonesis business. So when we go to customers, we start with these consumer and scientific insights. We engage our in-house scientific advisers who interact with our customers every day to figure out the types of products that they want to bring to market. We then leverage our Novonesis world-class R&D, upscaling and fermentation capabilities, which are important not only to guarantee this existence of this product portfolio and the innovation pipeline. But it also is what differentiates and enables us to deliver cost competitiveness, quality and reliability of supply. We then work with our customers on these customized formulations. And this is not as simple as just A plus B. This is really about also providing the product development capabilities, stability assurance and testing, regulatory capabilities, quality assurance and quality capabilities and the development of marketing claims. And then we actually have the in-house capabilities to manufacture finished formats. So this is actually manufacturing dietary supplements into a capsule in a box ready to sell. And that allows us to act as a true turnkey partner to our customers, accompanying them everywhere from development of a concept all the way through to a sellable product with the marketing claims that go along with it. And while our B2B sales form the bulk of our business, we also have complementary positions in a direct-to-healthcare practitioner channel in the United States and also a direct-to-consumer brand. And our presence in these complementary channels is important because it increases our understanding of consumer needs. It allows us to test the efficacy of claims. It allows us to target our innovation pipeline. It allows us to optimize the design of our clinical trials to make sure that the trials that we're running are actually able to deliver a saleable claim and something which is meaningful for our customers at the end of the day. So these channels essentially are able to make us closer to the consumer and as a result, a better partner for our customers. So we have all the pieces of the puzzle. But maybe you're sitting there and asking, okay, so what do customers think? I mean, do they see it? Are they excited about it? And maybe the best way to share that experience is just to share some of the early wins and the traction that we have with our customers as we've spoken to them over the last 4.5 months. So we had about 2 months after day 1. We had our first really big customer win, and it's exciting across a number of different reasons. First and foremost, it was a new customer, which is new to Novonesis and hadn't been a customer of either of the legacy companies. But we won that customer for 2 reasons. It was the power and the breadth of the combined product portfolio. And the second reason was this the ability to leverage this fully integrated end-to-end value chain, which I spoke about earlier. So this customer came to us with a concept, and it was actually for a multi health claim product that they really wanted to be able to position, so with multiple claims on the market. And based on their understanding of the legacy portfolios, they had assumed that they'd only be able to buy a part of the ingredients from Novonesis and that they would have to do the formulation and the rest of the work on their own. So that's where the conversation started. It was really fun to see how sales teams and scientific advisory teams from both legacy companies came together. And very quickly, we're able to identify that we actually had the full product range if we combined products from both legacy companies to be able to meet the full need and the target concept that they were trying to develop. Then that kind of threw the customer for a bit of a turn because it was a very different development angle than what they had been assuming they were running on. And we were able to, through our customization engine, actually do the full turnkey from concept to finished format and formulation and get approval to start the production of that within 2 weeks. So really seeing the teams come together to be able to leverage all of those different pieces of the puzzle that I spoke to earlier. And that product is now in scale up, in production and will be launched later this year. I wish I could share the name, but we're not allowed to. We're also in the process of developing our first cross-channel synergies where we're actually launching new products, which have also gone through this customization engine. These are typically legacy. One of them is the legacy Christian Hansen women's health range of probiotics, which has been formulated and will be launched through the direct-to-healthcare practitioner and then direct-to-consumer channels later this year. So it's truly exciting as we engage with customers. We feel the relevance, we feel the pull and we see the value not only of the product offering that we're bringing, but also of the service proposition. I've spoken a lot to the core of our existing business, focused on dietary supplements. So let me shift to the smaller but quickly growing business of Advanced Health & Nutrition. One of our most unique and differentiated opportunities for our Human Health business is to bring the full expertise of the combined Novonesis' capabilities to precision fermentation, targeting health and nutrition applications. This is all about leveraging the Novonesis biosolutions toolbox. Claus, will speak later about how uniquely positioned we are to understand the range of precision fermentation from scientific discovery to scale up industrialization and commercialization. And when we apply this toolbox to advanced health and nutrition, we do this looking both to create nature identical ingredients. So think here about HMOs. So something which exists in nature, but in either small quantities or maybe not easily accessible to isolate. And we are able to scale that up and -- sorry, wrong slide, that we're able to scale that up and bring it to market. We're also developing novel ingredients where we target specific health outcomes, which are maybe more targeted or more scalable than what exists in nature. And here, for an example, in medical nutrition, you may look at modifying a protein substrate to be able to bring to market. So starting with the first bucket of taste and texture, we're, of course, very pleased to have started up our new facility and realizing our first commercial sales from our advanced protein facility in Blair, Nebraska, this year. And this is where we are bringing novel ingredients for taste and texture, we're particularly focused on plant-based markets. Of course, since we made this investment, the development of the plant-based market has slowed over the past 2 to 3 years, but we continue to see demand and the underlying drivers of growth for this area. Consumers continue to look for a variety of protein sources in their diet. They also continue to look for protein sources to reduce the environmental impact of food production, which becomes even more relevant in a growing population. And of course, with plant-based meat penetration still less than 1% of global meat consumption, the ability to grow is significant. We see within this market, while the market has slowed, the development, we see customers with superior eating solutions. Jacob referred to that earlier as well, continuing to win. So it's the customers with cleaner label, better taste, better texture. They continue to win, and that's where we play. In the area of medical nutrition, we are working to design novel proteins to meet dietary restrictions associated with specific medical conditions, which is working not only to satisfy the basic nutritional needs and protein profile but also to provide good sensorial to improve quality of life. And in Infant Nutrition, we're developing a pipeline of nature-identical proteins to further enhance early life nutrition. So we include our HMO business here, where we have the opportunity to apply the Novonesis precision fermentation toolbox to increase productivity, scale and accelerate the commercialization of our HMO product range. In many cases in this area, and Ester mentioned it earlier, we're breaking new ground. The regulatory pathways are often long. They're often unclear. So it makes it quite challenging to predict how this will scale up with accuracy. But we're also committed to act as a leader in this space, to invest and partner to develop those regulatory frameworks, which will unlock the true growth potential of precision fermentation in health and nutrition. So let me just quickly do a bit of a deep dive on to the HMO area where we know we've had a lot of questions. So human milk oligosaccharides form 30% of mother's milk and they play an important role in the development of infants, immune systems, digestive systems, brain and, of course, developing a healthy microbiome. Companies in the infant formula space are constantly looking for ways to bridge and close the nutritional gap between infant formula and mother's milk. And one of the most significant differences in the composition is the presence or not of HMOs. Novonesis is one of the clear leaders in the space with our -- we have 5 HMOs commercially on the market today. And this represents about 30% of the natural concentration of HMOs. And what's also interesting scientifically is that those 5 HMOs have complementary health benefits. So it's really bringing those blends as a much higher health benefit and outcome than any 1 single molecule. The growth potential remains significantly. So only about 10% of infant formula globally contains even a single HMO and often in quite low quantities. And less than 5% contain a more sophisticated blend with advanced health benefits. So the market potential, when you look at a EUR 50 billion infant formula market is large. As we bring HMOs into Novonesis, it gives us an opportunity, as I referred to apply that biosolutions toolbox. And 2 of the key constraints, which have slowed the penetration of HMO so far, have been regulatory approvals, which I referred to earlier, particularly for HMOs in China, which is one of the world's largest and also 1 of the world's most premium markets for infant formula and the availability of efficiently scaled cost-effective manufacturing. And our 5 HMO mix is already approved in Europe and North America, and we've made really good advancements recently on the Chinese approvals, and we fully expect to have our first approval for the first HMO by the end of this year in China. And then we are also actively assessing opportunities to further expand our manufacturing capacity and leverage our global network to ensure we're prepared to meet the growing demand. So if we look up a little bit beyond the markets and the products and the potential that we see within line of sight, and we allow ourselves to dream just a little bit. We see that if Biosolutions for mental health, we're able to reach just 10% of people in the world who experience stress regularly, we would help 350 million people experience improved wellness. If half of global infant formula were to contain HMOs, you would see a tenfold increase in the market size and more than 35 million infants a year would benefit from nutrition closer to the way nature intended it. And if just 0.1% of global healthcare spend were redirected towards preventative solutions to increase health and wellness, you would see an increase of about EUR 10 billion new addressable market. So as Novonesis, we have all the tools and the capabilities to unlock at least a fraction of this potential. So we have the breadth and the scientific foundation of our portfolio. We have this end-to-end value chain and we're uniquely positioned within precision fermentation to move from R&D to scale up to industrialization and commercialization. And we're committed to act as a leader in the space, to build the regulatory pathways for growth and to continue to invest in science and capabilities to unlock the potential for biosolutions. We will grow by bringing new biosolutions to improve health, wellness and nutrition to people around the world. With that, I'll ask Tina to come and speak about Planetary Health.

So thank you so much, Amy and Jacob. And now you have shared all the things Novonesis is doing for healthy people. And I look so much forward to taking you into the world of a healthy planet instead. Because the world needs sustainable solutions, there is a high demand in order to secure that the world becomes more sustainable. Customers are asking for higher yield, higher performance, more benefits, but lower sustainability impacts. So that's why customers more than ever are looking for us at Novonesis in order to help them drive their performance and drive their or support their differentiation. And the way we do it is by the unmatched innovation as Claus will talk about later today. It is by close customer interactions and then it is by addressing new markets. And that together is enabling us to outgrow the underlying markets. But let me share a bit more about where does our solutions are and how it functions. So we are greening solutions across farms, factories and homes. But let me make it a bit more specific so that you can follow what it is I'm talking about. So in a farm, for example, we can replace a pesticide with a biocontrol product or we, for example, can support a farmer, make a healthy chicken but utilizing less corn and thereby increase the yield. So a 5% increase in animal production equals to taking 2 million cars off the road each year. And in factories, this is large industrial processes. They are looking for yield, higher throughput and so forth. But they are also looking for less use of water. So when the textile leather and pulp and paper industries, we every year help our customers save 85,000 cubic meters of water. You might ask how much is that? Well, that is, in fact, equaling to 35,000 Olympic pools. And in homes, in Household Care, we can support our customers to replace chemicals, but we can also support our customers at washing at a lower washing temperature. And just lowering the wash temperature from 40 degrees to 30 degrees, that is equaling to that what European -- 600,000 European households are spending of energy every year. But you might ask, what is it these industries do have in common? And what they do have in common these different sales areas is that they are delivering efficient important as that and as simple as that. But let me go through each of these 4 areas 1 by 1 to give you a bit more detail, and I'll start out with the Household Care industry which is 18% of the Novonesis turnover. We are -- most of our turnover is coming from laundry, where we have a very strong presence, but we also have solid exposure to both dishwash as well as to cleaning operations. The products are removing stains, improving the cleaning performance. They are delivering freshness and securing that textiles stay nice and fresh for a longer period of time. They are available in all kinds of formats so that they cater to all the various wash conditions, which they are around the world, no matter what kind of challenges the customers are having or the consumers are having or what kind of formats they want to apply their products in. There is a number of structural trends underlying this business that is a growing population, not only in size, as we've talked about already, but also in wealth and that is a strong driver behind this business. But it's not only that because customers are also increasingly looking for lowering the amount of energy consumption, less water and also less chemicals. So all of these underlying market growth or market trends are driving a solid underlying market growth of a couple of percentage points. If you look at how the volumes are distributed, there is roughly 4x as much detergent volume in the emerging markets as they are in the developed market. At the same time, the enzyme inclusion rate is almost 6x bigger in developed markets compared to emerging markets. So as the emerging markets industrialize, as they are more and more willing to pay for increased performance, increased convenience and increased sustainability, the market -- the opportunity is there. So on top of the underlying market growth, we are also able to grow via innovation and penetration. And penetration is going to be the biggest contributor to our growth. That is going to come from the emerging markets, as I just talked about, but also from a global private label market. As Jacob has already talked about and has also been alluded to by Ester in one of the questions, pricing, share and market growth is also part of what it is will contribute to the growth. And we have seen that already, and it's something which we expect to remain. On top of that, we can also bring new solution to existing customers because you have to remember, just as in the food and beverage space, less than 5% of the ingredient cost comes typically from an enzyme in the area of Household Care, while at the same time, they do deliver lots of value. In our innovation agenda, we focus a lot on increasing the claims enable our customers to make more claims to their consumers, thereby supporting their differentiation. But at the same time, we also support them in contributing to reformulation of the full matrix. However, in order to be successful, you also need to understand the underlying customers. You need to understand what is it the customers need? What is it for application in which the detergent is being used, what is it for challenges the consumers are having. But let me give some few examples of how is it specifically we work with various customers. So for example, we have a Middle Eastern customer. And he wanted to reformulate his detergent. The reason for that was that he was using soda ash as a cleaning component, and that was in tight supply. So he wanted to remove away from that. So what we did was we worked with him, identified another filler for the detergent and also designed an enzyme blend, which could help boost the performance and secure that the customers and that the consumers would not be unhappy with the result. So we did performance test as well as doing consumer test in order to prove that this was, in fact, working very nicely. So that's one of the examples of what we have done because that was a success with one of the customers there. In Latin America, we did similar kind of activity. Here, the focus was on whiteness. So the customer wanted to remove an optical brightener from his detergent, but he still was wanting to have an enhanced whiteners performance. So how do you do that? Well, we went in, we formulated a new enzyme blend together with him and allowed for the removal of the optical brightener and at the same time, also enhance the sustainability profile of the detergent and at a lower cost. So as you can see from the Net Promoter Scores, our customers are appreciating how it is we are working with them and what it is we are doing. So these 2 examples I just shared are examples of how we are greening the actual household care product. But we can also do other ways of greening the detergent industry or the household care industry. We already talked about how it is we can support washing at lower temperatures, and that's one of the examples how you can green the use of the product. But ultimately, you can also completely reimagining the full detergent product, so that you instead have a fully bioderived and biodegradable product. And across the 3 different ways of greening the solution, it is something which our customers are looking for. One of the newest samples of supporting that journey is Luminous, which is a newly launched product, which is available globally and it is fully biodegradable, and it is also working in combination with the freshness platform. So I hope with this short intro to the household care industry have shown how it is that we are well set in order to outgrow the underlying market and how it is we are well set in order to keep that innovation journey, which we have been on so far. So now let's look at the other part of planetary Health, which is agriculture, energy and tech, and that consists of 36% of Novonesis growth. In agriculture, we have solutions both for animal health as well as plant health. And these solutions support, replace chemicals, replace pesticides, replace antibiotics or it can increase the yield on a field or in the animal production. On the energy side, we can -- our solutions can replace gasoline at a lower CO2 footprint because it becomes one of the components to be included in the fuel. It can also be supporting biodiesel by and coming from vegetable oils and then being blended into the diesel pool. Technical Industries is the smallest of the 3 parts of agriculture, energy and tech, and it consists of many different industries. It can be textile production or grain processing. And in general here, consumer -- our customers are looking for increased yield, increased throughput and less waste and at the same time, at strong sustainability. Also here, we have a number of underlying fundamental trends. We have a growing population. So for example, if you think about in agriculture, we need to secure that we do have more yield for each acre of land. There is also an increasing energy need in the world, and that has lately been coupled also with an increasing need for energy interdependence -- independence, it's called. Also in the industrial space, we are looking at replacing chemicals and thereby improving the sustainability output. So let me start by looking at the area of agriculture and go a bit more into that area because it is a very, very, very huge market. Ag markets and ag ingredients market is huge. And there is a low penetration of biological solutions or biosolutions in the agricultural field. We see higher growth in the area of biologics. And thereby, we are well set in order to participate in that growth in that underlying market. After the combination of the 2 companies, we are bringing together complementarity of our product portfolio. If you look at the animal space, we are well set at well-diversified exposure across the various areas. In the plant area, we are mostly exposed to corn and soy, and we are increasingly getting more exposure to other crops as well. That is the innovation focus we are having on secure a broader space of focus and secure that we have more presence in the higher growth areas. And this is all well and fine to have a strong product portfolio, but these products also need to reach the consumers because if not or the users of the products because if not, it doesn't make any sense. And there, we also in -- with the combination are derisking our market access because we do have multiple complementary channels to the market. And let me give an example. So we have a very strong asset -- a very strong partnership with the DSM [indiscernible] in the field of animal nutrition. And at the same time, we do have direct sales force, which is selling probiotics to the market, giving an understanding of what is it customers, consumers or customers' needs. What is it that -- how is it that we drive penetration. And how is it that the market needs to secure that the products are being applied. So that combination of partnerships as well as a direct sales channel secure that we get the understanding, we get the penetration, but also we get the scale and reach, which is very important in that area. And this complementarity opens up for revenue synergies. And let me give you 2 specific examples, 1 from the plant side and 1 from the animal side on this. So first, on the plant side, we are looking at cross-selling of a Bacillus megaterium bacteria and bringing it to market via the sales force, the direct sales force, which we have in the plant area in the U.S., in Brazil and in India. This product is supporting the solubilization of phosphorus in the soil and thereby securing a better nutrient uptake of the plant. And thereby, you get stronger plans and you can complement the use of fertilizers. In the case of Animal Health, we are taking a probiotic and bringing it to the market via the direct sales force, which we have in the U.S., and this is a product which is utilized in piglets. So I hope with this short intro to agriculture have shown how we are well positioned to capitalize on the good momentum of the growing market. And now let's look at energy space, which is the biggest within agriculture, energy and tech. And that is, in fact, 3 different markets. The biggest market is the starch-based ethanol market. The 2 others, biomass, which is ethanol coming from waste materials and biodiesel are smaller markets, they are more in their infancy, but they will have higher growth rates. Let me go into each of the markets geography per geography in order to give a bit more flavor to what is happening globally here. So for example, in the U.S., there is roughly a 10% inclusion rate of ethanol into the gasoline mix that's driven by legislation, and there is discussions about inclusion of higher energy -- or the higher ethanol blends into the energy mix here. In Latin America, in fact, cars today are driving either on 100% ethanol or 27% ethanol. So the use of ethanol in that geography is very significant. And if you look at corn-based ethanol, it is economically favored, and therefore, you see new plants are being built here. At the same time, also in this geography, biomass, so ethanol from waste material, is also gaining a lot of traction. In India, there is a 20% mandate of ethanol into the fuel. And there is a lot of starts available, and biomass is also starting to get traction in that geography. However, what is it that it takes in order to outgrow these underlying markets? Well, it does take a lot of application understanding because in this area, every customer is unique. And you need to understand the unique challenges that customer is having. You need to understand the setup that this customer is having because typically, the plants, they're different. You also need to understand what is it that the customer is trying to achieve. And therefore, we are having the largest and the most sophisticated R&D and technical capability who are capable of tailor-making solutions to each of these plants in order to drive improved performance and differentiation for them. And again, here, let me try and give you an example. So we have a customer who wants to what we call run very hard. And what that mean is that they want to run very speedy fermentations, so short-time fermentations. However, typically, in summer, it becomes warm and then they'll have to slow down their operations because the yeast can't survive in these circumstances. So we have been developing a new yeast solution for them, which is more robust and enabling them to run exactly as they want to run also in summer times without sacrificing any performance or any yields. And this combination of very strong technical understanding and very strong commercial understanding is appreciated by our customers, as you can see in the Net Promoter Score, and it has enabled us to help decouple the performance from the U.S. ethanol market, the underlying ethanol market. For sure, we do benefit when the U.S. ethanol market is doing great, and it will remain being a growth driver for us. But compared to just 5 years back, where 100% of our turnover was linked to the traditional enzymes in the U.S. ethanol market, today, that is only 50% because we have decoupled. We have decoupled on the geographical expansion, as we just talked about at some of the -- at one of the former slides, but we have also decoupled on product and value stream diversification. Lastly, we have also diversified with biodiesel and biomass getting a larger share of the mix. However, in order to understand all of that decoupling I'm talking about, let's take a look at the ethanol production process to give it a bit more flavor. So in come some inputs that can be a corn-based starch or it can be waste materials coming into an ethanol plant. Then you need some -- this is big molecules coming in, and you need to degrade that to break that down into some components. We call it into sugars. Enzymes are capable of doing that. But then when you have these sugars, you do need -- you need a yeast in order to ferment these sugars into ethanol. However, the output of an ethanol plant is not only ethanol, it is so much more than that. It is all these different components. And that is what I have been talking about when I've talked to corn cracking. And different customers are different. Some wants more of one component and the other, and you need to have the capabilities in order to keep innovating and deliver to what is it exactly that customer wants to have, does he want more fiber ethanol or does he want more corn oil? So this has been a key growth driver for us, and this will remain a key growth driver for us and will secure that we can keep outgrowing the underlying ethanol market. However, the journey doesn't end here, because if you look further ahead, more out in time, there is possibilities also for ethanol to upgrade or to get into upgraded feed with a higher protein value to get into sustainable aviation fuel or into chemicals or maritime fuels. The International Energy Agency, they talk about that in the 2040-ish, so 15, 20 years out in time, the ethanol for road transport is going to peak. However, after that, the share in sustainable aviation fuel -- in aviation fuel and maritime fuels is still going to increase. So this is longer term. This is not for the near term, but this is a longer-term additional opportunity we are seeing in the area of ethanol. And I hope I also have shared with you how we in the shorter term and medium term also are seeing good opportunities with the geographical diversification with the product and value stream diversification and then also the diversification into other areas. So this is the reason why we are more positive on the ethanol field than we were just a few years ago. And that is what is strengthening our belief in that we will be able to keep outgrowing the underlying ethanol U.S. market. So now, last but not least, let's take a look at the technical industries because technical processing is a wide range of different industries. What is typical for them is that it's largescale operations. So what customers are looking for here is yield. It is process optimization. It's less waste. It's less use of water that we just talked about in the beginning, and then, it is sustainability. And this is exactly where our toolbox is supporting their operations. But let me give a bit more examples because I assume it can be a bit more fluffy. So it would be good with some examples. So for example, if you take a vegetable oil, we can support customers with pretreatment of that vegetable oils. We can remove the gums, which is formed when you extract a vegetable oil and make it more difficult to process or secure that the final product is not so attractive. We can also work with customers in order to support them separate various streams better because when you run big operations like that, you want to have your different streams to have some -- so high yield in each of these streams as possible and thereby, lower the amount of waste. We do that, for example, in starch processing if you want to have a more clean and a higher yield of your gluten fraction. Last but not least, also we can enhance the final product, which is being processed in these last operation. This can be in the textile processing where it is, enzymes can support garment look nice for a longer period of time. In general, this area is more mature, and we, therefore, invest less in R&D. It is a very valuable segment to us because they have a very nice return. And at the same time, it allows us to utilize our wide and diverse production footprint, which Anders will talk about later on. But as the others, I've also got the possibility to dream a bit. So what if enzymes for detergents there, just 10% extra of the surfactant was moved over to a biosolution. That would double the market for enzymes for Household Care. And what if we in Europe just implemented the same regulatory period as there are in the U.S., that would, in fact, triple the opportunity in the area of biocontrol products in Europe. And what if 15% of global aviation fuel were made based on ethanol, turned into a sustainable aviation fuel? That would double the ethanol markets as they are today. So I hope I with this have shared my fascination for the field of a healthy planet because customers are more than ever looking at Novonesis for performance boost for differentiation and for sustainable solutions. So what I want you to take away from this short session is that the trends are there, that the needs are there, and we are more than well placed in order to outgrow these underlying markets. And we do that by unmatched innovation by strong customer interactions and strong customer understanding and participation and then by addressing new markets. So with that, thank you so much from the Planetary Health side.

Thank you, Tina, and thank you Jacob and Amy as well. We have now time for Q&A -- a 15-, 20-minute Q&A. And please raise your hand. One question, Lars? There'll be a microphone coming.

Lars Topholm from Carnegie. It goes to you, Tina. So I understand a lot of the value proposition your customers get out of you. But I still don't completely understand the structure of your growth. So for example, you take your Slide 66, where you have the various -- you have mentioned 70% of revenues first year, and then, you have some from corn oil, et cetera. I mean if you look at the U.S., we know quite precisely what the installed capacity is, so I wonder if you can put some comments on your penetration of that installed capacity within these various upselling elements. And also if you can put some words on if sales is 100 to someone who just take the basic package, if that customer also wants to optimize the corn oil output, how much additional revenue do you derive from that?

So what I can share Lars is that in general, we have a very strong presence in the North American ethanol market. And that's because of very strong, I would say, technical service, technical presence. We have talked about that before. In a number of cases, our people are working so closely with the producers of ethanol that they can be in and operating in their facilities. The exact nature of how it's split out, I cannot share. But what you can see is that, in general, there is more and more value add from the various solutions. You can see that ethanol as such, this is for sure, a commodity, but it is also where you can, for example, get the corn oil out, which is used, for example, in renewable diesel, you can enhance the feed component, which is the key element from some players. And then there's also the whole fiber-based ethanol, which is a new and more emerging area, which both have the value of ethanol as well as the value of, you could say, higher -- or enabling you to sell into higher-priced market. But the exact split, I unfortunately cannot give you.

Now you know I'm a big fan, but the concern would, of course, be that some of the extraordinary growth rates we see now is a penetration journey, which inadvertently has to come to a stop at some stage. So where are we sort of on the S curve? Are you accelerating? Are we near the peak? Or how do you explain that?

So what I would say to that is that the ethanol industry is exactly being characterized or the energy space is being characterized by that diversification. So it's diversification. 10 years back, we didn't have any yeast that we have now. 10 years back, we didn't have any solutions supporting the extraction of corn oil, we have that now. The same goes for fiber-based ethanol. And then also in the area of not only the U.S. ethanol, but the broader base, you have biomass, biodiesel and the geographical expansion as well. So what we are seeing is that we feel that we are more confident on the energy area than we were just 3 years ago. And we also see that we remain confident that we will be able to outgrow the U.S. ethanol market volumes. And also given that you longer term see these opportunities in sustainable aviation fuel, materials and so forth.

Thank you, Tina. I think over here, Georgina, a question for you. I think there's a mic coming. Some teamwork. Thank you.

Thank you for the presentations of the different divisions, super interesting. If I think about the business models that we can see across all of the different divisions, is it fair to categorize it in kind of 3 separate ways? So one would be yield enhancement or that outsourcing and from customers. One would be a product that's a bit more discretionary or nice to have. And then another category, that would be a sustainable or a petrochemical alternative. Is that fair? And how do you think about the pricing power between those 3 different types of products? And do you have different go-to-market strategies for those 3 different product groups?

I can start. So if I look at planetary health, we have a contribution to price to roughly the same extent across the various divisions and various areas. We have talked to that before as well. We talked to that Household Care came in a bit later than the others. But as we also talked about at Q1, it is contributing to the growth as of now. So I would say the pricing power is across the board. I think that if you think of where it is our solutions are needed, they are needed across the board, both on the food and health side, and you can talk to that later, but also across the categories, there is an underlying need for yield, for less waste, for replacing chemicals and then also sustainability. But I would say it's a few cases. It's typically when it goes hand-in-hand, both sustainability and good business, that is when it's really successful. And that is exactly what our portfolio is delivering.

I can add a little bit. Just to mean, I think -- I'm not sure I would go exactly those buckets, but the buckets we think about it are this 50% healthy people -- 50% healthy planet, right? And how much of that is truly discretionary or not? I think would -- if you look at the macro trends, I think it all becomes extremely relevant as you go forward. I think that the commonality across the value propositions is the activity, if I can use that word, of the ingredients that we sell. So whether it's for a yield enhancement or whether it's the actual in health, it's the functional ingredient, what we're selling is that either the catalytic or it is that active ingredient. You said what a small percentage of a finished format of food comes from the ingredients we sell. And yet it is the one -- it is the ingredient that actually creates, whether in your case, taste, texture, et cetera. So I think you really need to look at the pricing power across the value models as being relatively consistent in terms of it is that uniqueness of the biosolutions that we're selling regardless of application.

And maybe just also, we are 3 commercial areas that goes in depth with the various applications that we work in. We are experts of the fields we are in. And then we are blessed with the scale of a carbon manufacturing platform. We're blessed with the scale of our R&D platform where we benefit from things that goes across these 3 areas.

But you are right in the sense of that a lot of what we talk about is performance, differentiation and then higher yield, less waste, more sustainability benefits across all 3 of them.

Very good. Søren, up here. There's a mic coming.

Søren from SEB. So my one question goes to Jacob. Jacob, you were a long-time leader in the older Chr. Hansen and now you had this role for some time in Novonesis. So what qualities and key strengths from the old Chr. Hansen way of working and doing things do you feel is important to bring over to Novonesis?

I think some of the things that we have come across in building our new company, our new culture is traits where I can recognize them from -- I think we can from both of the legacies, the strong intimacy with customers, the scale and strength of our production and R&D, something that is strong. The ambition across our teams is critical for us. And something I -- with immense excitement are looking at in the integrated business already that we were not that different, right? We have come across. Now, after only 4 months of being in action, we have a fully operational organization of people that are excited about this new journey together.

I think Sebastian here at the first row.

Sebastian Bray from Berenberg Bank. Tina, can I ask you a question on Household Care, please? If I go back to the 2015 presentations with Novozymes, legacy Novozymes...

2015...

Yes, not around this time. I don't want to...

Maybe I need help from others.

Not to put you too much on the spot here, but basically, there was a slide suggesting that the difference between developed and emerging market enzyme penetration was 5:1. And I appreciate the regulation may have changed now, but that number does not really appear to have changed. It may even have gone up slightly. What has prevented emerging market enzymes penetration expanding more aggressively over the last 10 years? And is that likely to change in the future?

Yes. I am sorry, Sebastian, I can't go back to 2015, so -- but I can at least tell you that if you go back 5 years, then emerging market was roughly 1/3 of the turnover in the Household Care area, while today it is 40%. So it is increasing, and it is increasing because of the increasing affordability, so the wealth in emerging markets. It is also increasing by the need for higher performance, higher penetration. And we have also -- as we talked about at the last Capital Markets Day, again, not in '15, but about putting more feet on the ground in order to drive that penetration. So I think it is a matter of the market needs to be ready. It needs to industrialize, if I may use that word, and also wealth need to be -- keep growing. And then it's a matter of us being there, working with customers, proving what it is. And I think it's on purpose, the 2 examples I was sharing from Household Care is about the emerging markets because we see also in these markets a lot of interest in reformulation of the solutions. So that is also a good, you could say, unlock to the growth.

I think there was...

There is a question down there.

Yes, I see it. Down here.

It's Alex Sloane from Barclays. A question for Amy. You talked about using Novonesis precision fermentation toolkit with regards to HMOs. I think from memory, as stand-alone, Chr. Hansen, those were quite dilutive to the margin, about 200 basis points at the time of the deal announcement. Where are you in terms of the journey of in-sourcing production there? And would you already expect that to be a material driver to the 37% group EBITDA margin target next year? Or are those benefits to come further down the line?

Yes. No, it's a good question. I think the real unlock in the HMO space comes, as I mentioned, with the regulatory. And then as you rightly point out, the scale manufacturing, right? So -- and that's not going to be overnight in terms of our ability to unlock that growth and margin potential. I think where we are, I mentioned we're making really good progress on the regulatory front. And of course, as China unlocks, that unlocks a real ability to grow and to bring scale into the business. From a manufacturing perspective, we're in the process right now of really looking across the entire Novonesis footprint. One of the things, and Anders will come back and speak to it later, that really differentiates Novonesis is the ability to leverage the global network. And this is what we're trying to leverage also on the HMO side. So we're actively looking at options for investments where we will go to scale and to in-source, but that's still work in progress.

Thank you, Amy. We have another question down here, Alex?

Alex Jones, Bank of America. Another one for Amy. You talked about sort of the split of dietary supplements into the gut and then other indication areas that are growing a lot faster. Could you give us an indication of how that splits for you today in terms of sales? I know it's not necessarily simple. And how you expect that to evolve going forward?

Yes, it's not simple, and I won't give you a specific number, but I think it's also when you look at, it's not just us, it's also the market. So if you look at -- if you go back 8 years ago, it was basically -- it was all about gut, again general gastrointestinal health. COVID brought a lot of focus around immunity and probiotics and supplements into that space, where our pipeline is, is again into these more specific modes of action, which will allow us to broaden and diversify. So where we are today, if I were to look, we would still have a good portion -- yes, less than half though, on those sort of more mature and then really the growth in driving just proportionately into some of the newer areas and categories, which are also growing much faster. Yes.

Thanks, Amy. I think we have time for one more question for this session. I think there was a quick hand over there. So [indiscernible].

[indiscernible], Liontrust. I've got a question relating to pricing. You've spoken a lot in the past about how your pricing used to be deflationary, down about 1 percentage point a year of existing products. And how over the past couple of years you've shifted that to become inflationary up, about 1%, 2% each year. I wonder how do you see pricing longer term? And have you already swept up all the low-hanging fruit across commercialization and strategy more generally around pricing? Or is there any more you can push there?

Yes. So if I start, so pricing will remain being a growth driver for us. One of the things which we have been doing, and now, I talk across Novonesis, but chime in if there's something you think I should add, is that we have spent a lot of time on building system and capabilities exactly with the aim of making it sticky, making it a capability which we have -- which we will continue to use. So that has taken a lot of effort and a lot of focus from us in management in order to train people, to do role plays, to secure the systems where there in order to secure that pricing remains a sticky part of our growth going forward. But I think the key is that we are -- the key growth driver for us is volume. But price will be contributing as well. Anything you want to add?

I want to add that in the food and beverage space, you can -- it's hard to predict exactly where inflation is going to go into the future, but we are always going to close that gap. And then it's all about when we bring in the new volume, it's about the deep insights of what is the value we create. So there is price points where you can get 1 point, Index 140, if you think of the new value it provides. So it's very important as we grow volume we do it at the right pricing, at the right time. And that demands a lot of deep insights that we're collecting in the industry.

Thanks, Jacob. With that, there's a break. So I ask you to go upstairs, some snacks and drinks. And you have to be back here at 3:40, latest. So see you back in roughly 25 minutes. [Break]

Fantastic.

So we're now ready for the final session here of our Capital Markets Day of Novonesis. And I'm happy to take you through the research and development, operations, strategy integration, and we round off the financials. Then we have a large Q&A where management will all be gathered up here. So without further ado, Claus, please?

Yes. Welcome back from the break, everyone. Also to the ones online, welcome back. It's now my pleasure to unfold how Novonesis is and will continue to be the leading innovator within biosolutions and why we are now better set from an R&D perspective to also win the future era of biosolutions. If you sense a little bit of passion in me for the subject of biotechnology, it's genuine, I can't hide it. I've been -- I've had the pleasure of following the field since its early infancy in the early '90s, so more than 30 years in the field. And Novonesis is simply a cool place to be a biotech scientist. Every year, you get to see your efforts in the lab materialize into actual products, doing a job for actual customers and making an impact also on sustainability. But first, I hope you will take -- you will allow me to take you on a bit of an educational journey and talk about the biology and the technology should we put into use to develop biosolutions. So Novonesis technologies and biosolutions are founded in nature. Enzymes, they are the workhorses in all living cells, from plants to humans and, of course, in microorganisms. Here, they carry out or catalyze all the necessary functions and activities that a cell needs to grow, to proliferate, and replicate. Then microorganisms are some of the simplest creatures on this planet and also most sophisticated life forms. They are some of the smallest ones you find in nature but also the largest. The largest creature on this planet is actually a fungi in Oregon spanning an area of 8 square kilometers, from a single cell to growing that big. With enzymes and microorganisms, we would have -- without, we would have no life on this planet as we know it. In Novonesis, we harness these wonders of nature in the form of the microorganisms themselves or what they can produce, all in the end to make biosolutions. By the nature of this, our solutions are both renewable and biodegradable. So it goes around without saying, if nature -- if biology can make it, it can break it. Well, in Novonesis, we take building blocks, these nature's building blocks and then we applied advanced biotechnology science and engineer these to provide the market targeted solutions. The magic starts as we design and engineer our microorganisms to make the particular solution. We then scale these microfactories through fermentation in our large-scale facilities. Here, the microorganisms grow on simple agriculture raw material inputs, such as starch or nitrogen source. They multiply and they produce the biosolutions at a commercial relevant scale. We then house and purify the outcome and put them in a format suitable for our customers to use as either an enzyme, a protein, metabolite like HMO or live microorganism itself. In a sense, we simply take simple input from agriculture and through fermentation with our microorganisms, we produce something very advanced. Now let's take a look at how broad a suite of biosolutions we actually provide for our customers. We are able to produce a vast range of different solutions. From active ingredients like the enzymes, you've heard about laundry and food and industrial processing to advanced ingredients like HMO for infant nutrition, metabolites for BioAg in biocontrol or proteins for advanced nutrition. In the microorganisms cells, as a part of food cultures for fresh dairy and cheese-making, for biopreservation, dietary supplements for health outcomes in humans and animals, and yeast for producing biofuels. In all the areas, the biosolutions drive for better and more sustainable processing and more relevant and sustainable products. But the potential goes way beyond the applications, as you see them and know them today, in the markets we serve. But while the opportunity space is vast, we have made and will continue to make deliberate choices on where to engage and participate. Fortunately, we are helped by the technology developments, constantly expanding the space and the opportunities, both from what's possible to do but also for what can cost-effectively be produced. And let's look closer into the technologies. We keep pushing the limit for what we can do with the biology. We have, throughout history of the company, been at the forefront of biotech research, adapting constantly to new scientific knowledge and tools and we apply these to make the breakthrough innovations. This is a continuous journey. Also going forward, staying in front allows us to win the future through continued stronger skills, know-how and proprietary technologies. We do not necessarily need to be the first on developing a specific new technology as long as we are the first to apply and use it for innovation. We were the first to realize the benefits of standardizing the extraction and use of enzymes to then become the first to harness microorganisms themselves by controlling their cultivation. Already back in the late '80s and early '90s, that was when molecular biology and gene engineering was in its infancy. Here, we were the first to develop an engineered enzyme and a recombinant enzyme production when we brought lipase to the market already in 1988 through recombinant gene technologies. Later, we were the first to use microfluidics or nano-droplet screening, where you can screen millions of live microbes in really small scale and go -- and I can go on. But more important is that we continue to nurture the curiosity and ability to learn the organization and through our many collaboration partners across the globe. This will keep us at the forefront of the biosolution innovation also for the decades to come. Novonesis is today unmatched in scale and capabilities when it comes to biosolution innovation. With more than 40 application and research centers around the globe we are operating, we can source international talent and leverage collaborations globally. We total around 2,000 employees with science and engineering background with more -- with an average tenure of 10 years or more in biosolution innovation. Yearly, we invest EUR 400 million in R&D or around 10% of revenue, resulting in a patent state just under 10,000 patents and a very high number of new product launches every year. And our share of sales from new products are more than 30%, simply combining the performance of the 2 legacy companies, new products here being defined as less than 5 years old. But what does it require to win this in the future? I'll spend the next few slides explaining this. A world-leading biotechnology toolbox is, of course, nice to have, but it's only a toolbox. And it only creates value if you pair this up with the ability to connect it to the market and market-relevant innovation. Here, our biotech capabilities rest on 3 important pillars. One critical important pillar is our ability to connect with the market through our applied research. This allows to understand our markets and customers and design for higher-value solutions. You heard my colleagues from commercial talk about that. Then we can bring the toolbox into place and finally leverage the third and equally important pillar, our ability to scale biotechnologies to provide the solutions at relevant cost and formats that serve our customers. Anders will cover this shortly after my presentation. Both legacy companies were strong across the value chains. But combined, we have increased our abilities in applied research and close customer relationships, allowing us to connect even better with the market. You heard some of the examples being dietary supplements, food and beverage, plant and animal health. We have arrived at an unmatched scale of the biotechnology toolbox and an unmatched scale of production, making us a leading innovator independent on the type of biosolutions. The strength of these 3 pillars will allow us to provide more value for our customers and enable speed and efficiency across our innovation value chain. I will now try to unfold these 3 pillars of what makes Novonesis so very special. As mentioned before, the truly critical part is this translational piece. This is where technology becomes innovation through our applied research. Novonesis is present in more than 30 industries, and we have deep application understanding that allows us to connect with customers and understand and replicate their processes in our laboratories. We have scientists in the front-line with our business colleagues, engaging with customers to understand their challenges. And they have this ability to translate these needs and form them as a biological problem, and that's what drives and fuels the innovation pipeline. When you understand the fundamentals of what delivers a nice texture and taste in a yogurt or how to separate grain into its different higher-value components, you can sort of measure and quantify the problem in the lab and then develop the solution to fix it. We do this at an unmet scale of any biosolutions company in the world, unmatched in terms of the level of investments in R&D and the breadth of solutions and markets they address. And hence, we, of course, also benefit from cross-fertilization of some of the technologies and learning across end outcomes. If you develop a fiber solution for breaking down, let's say, complex corn fibers for biofuel, it's likely similar technology that will work in animals for peak and poultry. Now we move from application into the second pillar, if you will. And I hope it's okay now that I take it a much deeper on the technologies. Novozymes -- no, no -- Novonesis, we have our own world-leading [indiscernible], it's huge in size. But what's more important is that, that while it's substantial in size, it's a selection of diversity. From various species and ecological niches, our scientists have carefully selected, over decades, of course, in accordance with the Rio Convention. The libraries are categorized and strains are genome sequenced. So you can compare this to walking in, let's say, to a fully ordered indexed book library, right? It's searchable for title, content, author. You can search on chapters and this and that, now versus walking into a warehouse really not knowing where to look for what. This is our inspiration and source of microorganisms for the direct applications in dairy, in bioprotection, in animal plant, as well as in dietary supplements. But it's also our inspiration to new sources of enzymes and metabolites. Now with the translated customer needs from application to understand, we can now put the biotechnology discovery and development toolbox fully into play. The innovation cycle can be described simply as a circular process of 4 phases, the design, build, test and learn cycle. In the design phase, we match our bio-prospecting that I talked about with the latest advances in bioinformatics, structural prediction like alpha fold, you may have heard of, and machine learning like AI-assisted protein engineering. And then we design for the most optimal solution to meet the criteria set forth from our application understanding, often purely in silicon. We then need to build the solution. We need the tangible solution in hand to test and for proving that it works. Thus, we need to make the prototypes in sufficient scale to be tested on a relevant parameters. Here, we apply advanced strain design and engineering automation for both the strain assembly, for the fermentation and for producing the test prototypes. In the test phase, we then test and confirm the performance of the solutions at the relevant condition. That means bringing real-life application into small scale suitable for higher throughput and, of course, learning using advanced analytics. For example, Mini-Baking, Mini-wash, Mini-Yogurts, combined with advanced analytics like imaging technologies, that will explain what is happening at the molecular level to learn and arrive at customer-relevant benefits. And then -- sorry, with all the data generated, we apply learning algorithms for an eventual next route design, build, test, and learn. Until we have a solution in hand, we can scale. For every cycle we generate, we generate more data that adds to become an asset in itself for future innovation cycle, and it continuously adds to the efficiency of innovation in the form of relevance and speed. Here, I try to better illustrate how artificial intelligence plays a role in the process also when it comes to biology innovation. Not as it is all magical encompassing tool that does everything for you but rather a discrete tool for different stages of the process and for an overall better prediction of the outcome and certainty and for the learning from the billions of data points, and it is literally billions of data points we generate every year in our laboratories through product innovation and with the customers when they apply the solutions. We get data in from the factories of our -- some of our biofuel customers and our dairies that we serve. As an example, in the front end here, we can predict win rates in the market of a certain level of benefit for a given solution. And that has guided the target profile for the new solution. We can then [indiscernible] the design phase, as I explained about, designed for the most optimal and even already stabilized product [indiscernible] such in our hands physically. We apply AI in our production strain design and again, in designing the context in which the -- of the application of which the solution should be tested and will provide a customer with most benefits such as in the laundry lab AI. And then during analysis, we put tools, AI tools, in the hands of our customers to provide them with the metrics and analysis so they can monetize the benefits that we provide, the SmartBake and Biofuels calculator. Altogether, these tools and technologies allows us to reduce, you could say, the front end of the biotech innovation cycle with up to twofold. And to innovate from -- and that's more important, maybe, to innovate for more complex and higher-value solutions. All time lines tend to depend more on the complexity of the application, the regulatory time lines, as Amy also has spoken to and Tina as well as the market penetration time lines than actually depending on the discovery part. We now move from the biotech toolbox into the third and important pillar on the ability to scale solutions into suitable formats. With a solution in hand, we need it to come alive commercially. And that means producing it at a scale and in a format fitting the customer's use. We do this seamlessly in Novonesis. The scale-up is already thought into the design and build phase for the innovation cycle. So that means that already when we have a prototype in our hands, we know that in the end, we'll be able to produce it, and also at what cost we will be able to produce it. Through the years of buildup know-how with strain design, process understanding, equipment technology, both in the fermentation part and in the recovery part, we pretty much can scale from nanodroplets on microtiter pit to 100 cubic fermenters. And that's with full correlation across the step. The final format can in itself be an innovation. It's uniquely adapted to a customer's need. It can provide the stability and compatibility in the context in which the solution gets used. Examples such as probiotics to fit a yogurt application. Jacob, you mentioned live in [ Ambient ] you have a sample without affecting the taste and texture quality. Another example are laundry enzymes to fit the unit dose formats you see, especially in Northern America and Europe. Our unique yeast dosing formats for our biofuels customers are a third example. Working with biology and fermentation provides a unique opportunity to run continuous and significant optimization. And this is very different from traditional production industries. This ability gets fueled by the ability to step change performance of the biosolution itself. For example, having a new enzyme or micro do what the previous did but twice as efficient, or it's fueled through improving the strain productivity by engineering or adaptive evolution, which again can result in 20% to 50% improvement in productivity. This is a unique feature of biosolutions that adds to the traditional optimization levers, if you will, the classical production optimization, the new improved technologies for production, which we, of course, also leverage. Overall, the uniqueness of our setup and production technologies allows us for yearly contributions of productivity improvements to the tune of 2% to 5% primarily as capacity release but also in bottom line impact. And to really understand the significance, during the last 15 years, we have optimized our enzyme production threefold, meaning that we would have needed threefold the asset base as we have today if it had not been for [indiscernible]. Moving from our key pillars of biosolution innovation to where best to apply our muscles in biotech. Given the breadth of the markets we operate in and the versatility of our machine room to innovate for ever more opportunities, it, of course, gets critical how we steer and make our priorities. Fundamental to Novonesis is that the innovation pipeline is business-owned, and it's based on solid customer buying, allowing for proper value assessment of the pipeline with R&D as the co-owners and guardians of the technical feasibility. The front end and more exploratory part of the pipeline has a nature and faster churn in terms of both kill and continue, and it needs to be dynamic. But as soon as the target profile of a solution is known and can be [ defined ] alongside its market value and with a foresight to how to develop it, then we can bring it to the late stage and execute with a key focus on speed and efficiency, of course, in agreement with the business. Given the size and dynamic of our pipeline with well over 20 launches per year in the combined legacy companies, this calls for full transparency of the value impact and the development cost as well as the monthly prioritization and anchoring of the execution. We have advanced our portfolio management and associated data systems to accommodate for this dynamic in real time. And we have set the organization in place for business relevance and understand across our applied research and across the function that has merit leaning into once given businesses, for example, the regulatory affairs and IP setup. And then we have our core R&D supporting functions, if you will, to where we leverage fully the technologies at scale and are flexible in the way we serve the business needs as they change. This ensures flexibility to address the most impactful programs, and it also limits sort of entitlement to R&D resources from the businesses. So it's always good to have a little bit of competition for R&D. Pipeline prioritization and execution is very close to heart of all leaders across R&D as well as marketing business. Here, a little over 4 months into the merger, we have clear line of sight to both the existing innovation opportunities but also the added synergy opportunities, both for new innovation as well as for optimizations that we can drive. By far, the combined innovation portfolio is complementary in nature with a minimal duplication. This forms a baseline, and then we add 20 new synergy programs on top, bringing the total late-stage pipeline to around 200. And overall, it provides us with increased value for our late-stage pipeline while we also increase through our capabilities, the certainty of the outcome and lower the risk. Just to exemplify, we have recently -- and I believe Jacob spoke to that, we have already launched a new product into cheese-making that benefited from improvements, which could only have happened as a result of becoming Novonesis. We've created the transparency of both value and cost to complete across the enterprise portfolio, allowing a view to spend with just around 80% of R&D spend being towards new product innovation and 20% split evenly on optimization and technology development. The product innovation, we believe, will continue to secure Novonesis a ratio of sales from new products to the tune of 30%, driving, of course, growth, but also driving market leadership and profitability. Often, you will see our new solutions come with increased profitability. And this is all done without losing momentum in the near-term execution. So far, the launches this year confirms that we have been able to move forward in the activities without skipping a beat, not missing a launch, and on track to deliver on plan. So totally, I agree with Tobias, I can mention that we're up to 15 launches this year as of today. The organization is excited to learn about the complementary technologies, and we've seen proof of what these can bring in terms of solving problems, which are otherwise on [ sulfur ] with either enzymes alone or microorganisms alone. In arriving at an optimal taste and texture and bite in the future high-protein, plant-based alternative to dairy yogurt, one will need enzyme to provide the right texture and microorganism to provide mouthfeel [indiscernible]. None of the 2 technologies alone makes a palatable consumer product, but together, they make one [indiscernible]. In crop cultivations, enzymes can release the micronutrients in the soil, such as phosphate and then the microorganisms stimulate plant root development for more efficient uptake. And in biofuels, enzymes are critical in providing the breakdown of key components of the biomass, the fiber, the starch protein, if you will, while the microbes such as the yeast act in synergy with the enzymes to produce the biofood. Now just imagine what we can do with this technology. This is -- I mean, our technology has the potential to completely reform existing agriculture and food systems, improving the efficiency while becoming more sustainable. We can take out the preventive use of antibiotics that we use in animal production today. This is one of the key reasons that today, human existence and disease is threatened by antimicrobial resistance buildup. Our technology has a potential to prevent and combat lifestyle diseases like cardiovascular diseases. Imagine what this will do through gut and metabolic health-regulating microbes and enzymes. We can close the protein gap, 2050, 10 billion people. We need more agricultural land on this planet that we have today if we are to continue to feed it as we do it today. By precision fermentation, we can make milk proteins, and we will spend less than 100 of the land to do that to feed the same population as you do it with milk today. So these are some of the really sort of longer-term abilities this technology can enable. So Novonesis entering the era of biosolutions with our unique innovation capabilities, we believe they will continue to fuel our growth and market leadership and allow us to capture our fair share of the existing, the expanding, and the future biosolutions market. To reiterate, our customer-focused approach and deep application science in the frontline allow us to understand opportunities at the molecular level and pair this with the value and impact it creates, fueling future innovation. Very few companies can claim this when it comes to biosolutions and none with the breadth of Novozymes -- Novonesis' span of application expertise. Our bioengineering expertise allow us to innovate for all possible biosolution outcomes: microorganisms, yeast, enzymes, proteins, HMO, and more. Our production strain technology is second to none, and the advancements are self-propelling in terms of continuous efficiency gains through advanced technology platform combined with learning and data-driven discovery. Our unmatched ability to engineer and scale our microorganisms in our production facilities allow us to bring biosolution swiftly to the market [indiscernible] our customers desire. And we continue to lift our competitive edge through our optimization. And nonetheless, our ability to work across the business, R&D and production, seamlessness and with an enterprise mindset ensures the best and most impactful outcome for our customers and for Novonesis. This will put us in a position to unlock and accelerate growth in the area of biosolution. As I started saying, it's a cool place to be when you're a scientist that want to make a difference. So if there's 3 key takeaways I can urge you to bring back, it is Novozyme's unique position across what we consider the 3 key pillars of biosolution innovation is unmatched and leading. We see an increased value in our complementary technologies beyond just bringing the pipelines together with growth opportunities both in core and in newer businesses. You saw examples of that from our commercial colleagues. And finally, we have the organization, the capabilities, the stewardship, and mindset to make the right choices and priorities to drive for impact. So now I'll hand over to Anders who will present operations. Thank you.

Thank you, Claus. Absolutely fascinating. I love the story. I've really been looking forward to this Capital Markets Day because I get to be the one that presents operations, the largest-scale producer of biosolutions in the world. Today, we can say that we are #1 in enzymes, we are #1 in microbes, we are #1 in cultures and in probiotics. We could not say that before we formed Novonesis. And of course, scale matters in operations. It brings a unique competitive advantage to our company and something that we can leverage at scale. But it's not only about scale. It's also about a unique ability to continue to optimize what we do. You heard Claus talk about 2% to 5% on yield improvement. We can continue to do that at scale. It's going to be one of the very significant contributors to our margin and something that we will cherish and we will invest in between operations and R&D. It's also about a unique ability to scale new technology. Over the last 5 years, we have added HMO, we have added advanced proteins, and we've added yeast. You heard both Amy and Tina that talk about that. I'm absolutely sure as we look ahead, there will be more biosolutions coming to operations that we are going to scale and bring to the market. In operations, we have what we call multipurpose facilities. That means that we can leverage a global footprint. Everything we do in operation is based on fermentation and a lot of the recovery steps are similar. And that is a unique opportunity to sort of send products around. If one market starts to pick up, we actually have the scale to move things around quite easily. In addition, we have a very long track record of delivering unique customer solutions where we work very, very closely with customers all the way to finishing formats. And of course, the fact that we scale up new technologies Claus talked about, more than 20 a year is something that is also making our operations unique. If we take a look at what is operations, operations is everything between R&D and commercial, I would say. It's all the raw materials we source. It's everything we produce. It is all the orders that we handle, and of course, all the products that we ship. But it's very important to understand that it's not -- it's an ecosystem at Novonesis. We work extremely closely with R&D on scaling up all the innovation that comes through the pipeline. And we work very closely with R&D on optimization of everything we do in operations. And similarly, with commercial, we are working very closely with commercial on securing, we got the right products on the shelves, not too much, not too little. And of course, we work very closely with commercial on also securing that all our products, they arrive safely to our customers. If we had to take a look at the global map of operations, as you can see here, we are scattered all over the world. We have a very, very strong presence in Europe, in North America, and China, large-scale operations and production facilities. We also have smaller facilities in India and Argentina and Brazil. And then, of course, we've got distribution centers all around the world. We are handling more than 100,000 orders a year. We shipped more than 97% of the time on-time to customers. And I believe the fact that we can do that brings our Net Promoter Score up to 72% across Novonesis, something that we are very proud of that we can contribute to and deliver to. If we then take a look at what are we also doing? A big part of the agenda in operations is about our ability to optimize. We have talked extensively about our ability to drive yield, get more out of the tanks. We have to get more out of the raw materials we use. 2% to 5% is definitely the target also for the future. But there are many other levers in operations that we will be leveraging to drive efficiency and productivity. We had talked about AI, digitalization, machine learning, automation, robotics, all tools that we will be driving and investing in to make our operations more efficiently. Similarly, on technology advancements, we see new ways of fermentation, new ways of recovery. We're already now in the process of testing some unique new abilities in both of those aspects. But there are more opportunities like offshoring, where we've been on a very strong journey to do that. It's about optimizing the product portfolio we have. It's about continuing the journey on squeezing everything we can out of procurement. And then, of course, it is to leverage a global footprint and to invest in producing where it's most efficient around the globe. If we then turn to what's happening right now, we talked about synergies. The biggest part of the synergies on the cost side, they are coming out of operations. So if I start with procurement, as some of you may have heard, a few weeks into the lifetime of Novonesis, we invited the 86th largest suppliers to a journey and an invitation to actually partner up with Novonesis. Be a partner of growth but also in that same context, we ask them to deliver actually more value to us in terms of lower prices and better payment terms. That has been the single biggest synergy enabler in the company. And then we expand into all the indirect, which is then thousands of suppliers. And I firmly believe that we have the opportunity to actually do that again with all our indirect spend. And when we do that, then we will be on a very strong journey to deliver on our synergies and we might even be ahead of the synergies. That's where we are now on the cost side. In addition to that, we knew we had capabilities, both companies. We have looked at everything we produced and are there ways to drive yield faster in our fermentation tanks. And we have already now started to look at where can we move things around and again, delivering synergies. There was a question early on today around everything we have done together with CMOs, especially in the probiotic chain. We're taking a hard look at can't we do that more efficiently in-house? And right now, we are moving some of the things that we have asked CMOs to do historically into our own operational machine, both because we get it more in control but also because we can do it more efficiently and cheaper. And turning to supply chain, we have some significant opportunities when we are looking at how we transport our goods around. Among the 86 suppliers that were some of our bigger transport companies, we have been looking at moving from air to sea that delivers some really unique and impressive savings in the way we distribute products, but it also delivers some very, very significant contribution to our Scope 3 emissions, making it much more sustainable to move the goods around. We're doing joint tender on road, on sea. And actually, it's been quite a journey because when you do that, you can sort of see it in real life, how your suppliers, they're competing. And through that process, again, we have managed to get some significant savings. Finally, in terms of optimization of inventories, of course, the fact we have a global footprint makes us able to drive down our inventories. And of course, it's also a part of how we are looking at synergy realization. So again, like my colleagues, if I were to leave you with 3 things: we are the largest-scale producer of biosolutions in the world. We strongly believe it's part of our competitive advantage for the future. We have a unique opportunity to continue on the journey of delivering productivity gains and optimizations that will continue. We have more levers than we have ever had to continue on that journey. And finally, we are ahead on the synergy realization that are coming out of operations. And ending on synergies, I'll pass it on to you, Henrik, to talk about where we are on the journey of integration. Henrik, please.

Thank you, Anders. Thank you, Claus. So integration and strategy is what I am responsible for. And before we go into that, just pause for a second. I think you have been shown 120 slides. I promise you we have only 100 more to go. But with all that information, I can only imagine how overwhelmed with excitement you must be now about biosolutions and about Novonesis. I know that we are. But it doesn't stop there. Not only do we have a great potential and a great vision, I can assure you we have strong plans and strong execution in mind. So with my limited time, I will show you that we are exactly where we wanted to be, in fact, even better on integration that we have a very strong foundation as we look further ahead to grow from and a strong combination that will drive acceleration. And then we have multiple paths to get us on that growth trajectory. But let's first start with the integration. So as I mentioned, we are exactly where we hope to be when we merged 5 months ago, January 29. We only need Claus to remember the name of the company and we'll basically be there. The first months in an integration, I'm sure you know, are critical to success. And we have been focusing on integration relentlessly, and I mean relentlessly. A lot of sleepless nights but also a lot of progress. So I can tell you, we are extremely pleased with where we are today. We were extremely well prepared going into this integration with plans ready to execute. And as soon as we merged, we were able to start there. Let me give you some examples. On day 1, we could immediately roll out our new brand and corporate identity. Employees could access shared IT infrastructure, access our sites and communicate from 1 Novonesis domain. Within the first week, we had systems in place to consolidate sales and CRM data, and we could connect the IT infrastructure we had. No major issues whatsoever. More importantly, we experienced no disruption to business continuity. Seamless customer experience has been the #1 priority, and the frontline and our supply chain have continued throughout to stay focused on our customers and to deliver products and services uninterrupted. On synergy realization, we have also made significant progress, and I'll talk more about that in a second. Plans have been validated, refined cross-selling has started, and cost synergies are being realized even ahead of plan. Our organization, as you have heard, is in place. Everybody knows their role from top to bottom of the company. So we're in a good place, and we're now starting ahead at what is next in terms of long-term synergies and long-term growth, but I'll come back to that. So how do we do it so fast? Well, it all comes down to people as always. Designing the organization and our operating model has been a critical priority to us, to do this quickly and to do it well, to avoid any uncertainty in the ambiguity and create clarity and clear line of sight for all our employees fast. That means that we can retain our key talent and everyone understands their role quickly. A well-functioning and highly engaged organization is the foundation for our success. And our design principles, which you see on the screen here have actually been decided by us and the team, well ahead of the integration. And it takes the best from both companies. It puts customer centricity first as with -- here we go. As is evident, as you can see with 3 commercial functions presented in the executive team. It ensures minimal organizational distances and layers and a few but well-defined cross-functional interfaces. To give you some more tangible numbers, 700 leadership roles have been described "assist and matched" with internal talent in the last 4 months. Span of control has increased company-wide by 0.5. Corporate interfaces have been designed, especially the critical one occurring, for example, innovation governance, SNOP and financial planning, all up and running. Finally, 400 positions have been closed while retaining key talent. The result is a well-designed and settled organization staffed with our strongest tenants and key positions sharing one vision, one purpose, and one set of ways of working. Setting the organization quickly has also enabled us to make significant progress on our cost synergies. And here, I'm pleased to share, although you heard it earlier, that we are now 80% complete on our ambition to deliver EUR 80 million to EUR 90 million EBIT run rate impact by end of 2026. It has been a priority to get us off to a strong start as you get here and show early success. And as I just described, it also has the benefit of getting the organization in place quickly. This means that the majority of organization synergies are now realized. With the addition of the procurement, the early procurement initiatives that Anders talked about that has been extremely successful, especially in direct procurement and is still ongoing, the result is that as of now, we are at least 80% driven almost entirely by organizational synergies and by procurement so far. We consider this a significant success. And I'm sure Rainer will say the same when you get on stage after me. But we will, of course, continue to drive our cost synergy program, and we expect it will get us to target faster than the original ambition and unlock further ability to invest in accelerated growth, we will see as we go. And speaking of growth, let's also talk about revenue synergies. Here we are, again, fully confident that we will deliver on the ambitious target of EUR 200 million run rate sales by end of 2027. These synergies will take a little bit longer as you probably know. But first, synergy sales have actually been realized already, as you heard. And while run rate impact this year in 2024 will be modest, it will actually be meaningful already next year in 2025. And how are we so confident? We have spent significant time after the day 1 to open the books and to validate and refine our plans. We now know we have plans in place that can take us to this target not only that is it achievable but we can comfortably get to this target. The entire sales force have been cross-trained already. And as you heard, cross-selling has already started. The synergies will, as expected, come predominantly from food, health and agriculture, as you heard earlier, and is fairly so far evenly distributed across commercial synergies, cross-selling, short-term development initiatives like combination products and longer-term development synergy toolbox. We expect 1% growth CAGR contribution from these synergies towards 2025, which is included in the 6% to 8% CAGR that we have committed to. So in summary, the integration is going very well. It's going as planned. We have a new and strong organization in place. We are progressing well on our cost synergies, and we have initiated a revenue synergy program that will deliver as expected. Now while our current focus is very much on achieving a successful integration, there's a life after, and that is just as important. So let's look ahead a little bit. The strategic rationale for this merger is, of course, not limited to realizing synergies in the short term. It is to become an unparalleled leader with unmatched capabilities in this very attractive market of biosolutions. So let me just summarize, as Ester shared, the need has never been higher for replacing existing technology with biology-derived solutions and new solutions, helping our society do more with less in a sustainable planet-friendly way. And as Claus explained just now, the technology has never been as advanced and as mature. We can do things today with biotech in terms of speed of development or precision of bioengineering or ability to meet affordability that was impossible 10 years ago. And on top of that, we are invited to the table, as Morten explained, when governments and authorities are looking for ways to tackle the challenges the planet is facing. So we consider this being at an inflection point, where usability and affordability meet and create so far unmet needs and creates the same, much like the computer chip did in the end of the last century. And I'm sure you will challenge me on that analogy in the Q&A. We are not the only ones, of course, to see this. We're not the only ones with the right to try to tap into that, but we are absolutely unique. So these are the 3 differentiators that we've talked about during the day. It is so important that you understand and appreciate these differentiators because they truly set us apart. Now on this slide, I've added some numbers to try to give you even more of a feel of what it means. We're absolutely unique when you combine these 3. Number one is the way we work closely with customers. Often, as you heard on their sites and the credibility and trust-based relationships we have built with them over decades, allowing us to develop exact solutions that meet their specific needs fast and reliably and to help implement them for the desired result. I think you heard especially Jacob talk about that with great passion and it's the same across all our divisions. The second one is what you just heard Claus talk about. We have a focus of a century-long dedication to biology-based solutions and biology-based solutions only. This gives us tremendous advantage towards quickly and effectively developing the right biosolutions and use our deep application understanding early in the process at scale very few can match. Further, we can exploit new technology across multiple industries, further driving value out of an innovation platform at scale. And the third one, as Anders just talked about, is our manufacturing scale and capabilities that allow us to bring products to market fast in high volumes and quality and the supply reliability level that gives our customers peace of mind to focus on their business and gives us economic scale to do so at price points that benefits them and benefits us. So while we don't compare ourselves to competition, we don't think we need to. I would say if you look at these data points on this slide, you should find that these metrics, they set us apart. These are key sources for distinctiveness and they allow us to outgrow the market and to outgrow competitors with best-in-class insights, innovation, and scale. So once we understand how these strengths they [ set apart ], we can apply them, of course, across the slide you saw earlier. This is what you see on the left side, this is the growth model. It is our secret recipe actually for growth. So just recapping real quick, if you just look at that, growth will come from existing core segments where we will expand with innovation and penetration. It will come from expanding into adjacencies, adjacent technologies, adjacent applications and longer term, it will come from new segments. And we prioritize our bets and our investments across this matrix and across industry segments based on our right to play, return on investments and spreading of risk. Any opportunity, in fact, we assess against this matrix and against our 3 core strengths. And that's what you see on the right. So this is a bit simplified, but you will actually find everything you heard today from the businesses being presented here. So if you look at the core, in our core, we leverage the full breadth of our competitive strength. Here, we think of segments like household care, dairy, dietary supplements, animal nutrition, bioenergy, for example. And here we lead. We lead and we continue to be the leader, and we utilize our strong customer relationships, our innovation toolbox, and our manufacturing scale to outgrow the underlying market through continued penetration and innovation. The core is, by far, our main growth engine, no mistake about it, in absolute terms, and it has a lot of growth potential left that is still unrealized. It will deliver and will be the foundation of our growth trajectory. The adjacencies that you see next to it, we talked about adjacencies during the day. You can think of bioprotection, HMOs, plant-based foods, biocontrol. These are 1 level higher in risk and reward. We don't have nearly or exactly the same right to play, if you will. It's a bit more out of our comfort zone but still based on at least 2 of our core strengths. Here, we expect much higher growth rates and we tolerate lower profitability. But in terms of absolute growth, it represents a smaller contribution in the years ahead. Finally, on the far right, and I'll talk a little bit more about that on the next page, we look at entirely new areas that can become long-term growth drivers. Here, we very carefully consider our ability to play, and our right to win as well as long-term development of market needs. We are prudent with our investment levels here and we leverage partnerships to derisk our bets and to share costs. One such opportunity that I'll just mention, and we are working for in is, for example, sustainable plastics as you see here. Here, we are with another company to develop and commercialize at scale in somatic technology that recycled PET plastic. PET or polyester, you will find everywhere in this room. You'll find it in the carpet. You'll find it in a lot of your clothes. It gives a lot of durability and a lot of other good attributes. One of them is not that it's easy to recycle. It's very durable. So PET producers are under tremendous pressure to make their product sustainable and detached from the fossil feedstock that feeds these products. Actually, the future growth of PET is projected to come entirely from recycling, and in somatic recycling, in fact, is the only technology that is able to give back the plastics virgin properties because we can break it down to its original molecular building blocks and then recreate the material. Now I'm not here to talk about that specific venture. But this is just one opportunity that we explore. As you can see here on this slide, they all represent opportunities. In fact, they can grow above EUR 100 million many, many years out, but they are highly dependent on market development dynamics beyond our control. We, therefore, regularly evaluate these growth bets. Some don't progress or the market does not develop as we expected, and we exit as we have done for water treatment. Others like those on the right-hand side grow and mature and we bring them into the business, convert them to adjacencies and increase our investment levels. So we continue to evaluate new opportunities. There are, in fact, a lot to choose from, I can tell you. And you can expect to see new ones being added to the portfolio in the years ahead. Now with so many opportunities to grow, our main challenge becomes prioritization. Our biggest competitor is our own ability to prioritize in the right places. We are, therefore, as we speak, performing an assessment across our business, our markets, our pipeline to ensure we continue, in Novonesis, to find and prioritize the opportunities that offer attractive growth, plays to our advantages, as you just saw, as a distinctive biosolutions player, has a positive impact on our planet and our society and balances risks in our investments. And this work will lead into our 2025 budget and process as well as longer-term financial planning. And we will use it to extend our long-term guidance, as you've heard, later in 2025. And to the gentleman from Danske Bank asking earlier, I can assure you we have a quite good view on what happens after 2025. And actually, we can see we have multiple paths, as I mentioned earlier, and as you just saw, to achieve acceleration of growth. But it's not the right time to share that yet. We'll keep that to ourselves. We will be applying this approach I just presented. And I can assure you we will focus on attractive growth opportunities, and we will focus strictly on biosolutions. So that's what I have to share. I hope you now understand why we feel confident telling you that we are absolutely on track with the integration. We are going to deliver the synergies. In fact, we are already ahead on the cost synergies. We are in a unique position to drive and capture growing value of biosolutions and to accelerate that growth, and we're actually spoiled for choice with multiple paths to grow beyond 2025. That's a good place to be and a great handover to you, Rainer, to make it into numbers.

Thank you, Henrik. Thank you, Henrik. Quite a lot going on Great. So first of all, good afternoon, and welcome also from my side, delivering on what we said we would do, that is really the common theme throughout this afternoon, and that is also reflected in our financials, where we find ourselves to be in a strong position. Novonesis is only 4.5 months young. Nevertheless, let's have a look at some, let's say, historical pro forma sales development over the last years. We see here a 6% CAGR between 2019 and 2023. And for 2024, we're guiding growth of 5% to 7%, where we now expect to end up on the upper range. I just want to remind everyone that we changed the definition of the organic sales growth at the beginning of the year and are capping growth for hyperinflation countries at 26%. It's important to keep in mind, specifically when comparing to peers. So overall, a solid performance in the past and a strong outlook, showing that despite the integration, we continue to focus on our customers and core business. And as Henrik said, I'm very happy with where we are. As you heard from my colleagues, we are able to create tremendous value for our customers while increasing operational efficiency that drives profitability. This is reflected in our gross profits, which we expected to be greater than 55% for 2024, contributing significantly to our adjusted EBITDA margin. Due to the fact that we are already at an 80% run rate of the overall cost synergy target, as Henrik just showed, which we wanted to achieve after 3 years, we now increased our outlook and expect the adjusted EBITDA margin to be between 35% and 36% this year. An expected net debt-to-EBITDA of around 1.5x at year-end gives us, in addition, enough strength and possibilities to fuel our growth. But we are not satisfied with that set of numbers. We believe we can and we must do better. And therefore, our expectation is to grow between 6% to 8% through 2025 with further acceleration thereafter. We expect volume to be the main growth driver for the coming years, supported by pricing. Sales synergies are starting to contribute to our growth in 2025 and will play a more relevant role thereafter. As was outlined, we expect here a net sales contribution of around EUR 200 million in 2027. Currently, the division Food & Health Biosolutions contributes 46% to the group's net sales, leaving 54% for Planetary Health Biosolutions. Going forward, we expect Food & Health Biosolutions to contribute a bit stronger to sales growth than Planetary Health Biosolutions. So what does this mean for the overall group's profitability development? Pro forma 2023, we showed an adjusted EBITDA margin of almost 34%. For 2025, our ambition is to be at 37%. So what are the drivers for the significant margin expansion? They are multifaceted. We continue to achieve economies of scale and productivity improvements in our operations as well as in the performance of our strains. You heard a lot about that from Anders as well as from Claus. Pricing is here to stay and contributes with its fair value. The already achieved synergies that we now set out to contribute with close to 1 percentage point to 2024, materialized faster than originally expected and will kick in with their full year effect. In addition, the normalization of overall input costs will have a positive contribution to the margin. These effects are partially offset by investments in resources. Let's keep in mind that Novonesis is positioned as a growth company, and we want to ensure that appropriate resources are deployed to ensure long-term growth. Our assumption is that besides the onetime normalization effect of input costs, all margin drivers continue to be relevant beyond 2025. Let's double-click on those synergies. They were mentioned today a few times. And as you already heard, we are in a very good shape here. 80% run rate. As of June is ahead of where we thought we would be. And of course, this gives us comfort that we are on the right track here. Driver for being already at this stage is the fact that the planned organizational adjustments have pretty much been finalized. It is also good to see that the distribution of the synergies is in line with our original expectations, slightly more than half coming from SG&A, the remainder being contributed from COGS. Let's stay on the cost side of the business and have a look at our R&D spend. Investments into R&D are a significant driver, not only for organic sales growth, but also for our overall financial performance. Science is at our core and the continuous development of our toolbox requires us to spend 10% of sales each year on those activities. The far majority of course, around 80% is spent on classical, new product development; the remainder, pretty much equally on research and strain optimization. The latter is quite extraordinary since this allows us to continuously improve the use of our current asset base, by freeing up capacity and improving yield. To put some color on this, by improving strain performance, we postponed capital investments in the magnitude of around EUR 200 million every 5 years, contributing, therefore, also to our free cash flow generation. Let's have a more detailed look at the free cash flow. In 2024, we're expecting CapEx ratio in the range of 9% to 11% of sales. Looking at the development so far, I would expect us to end up rather on the upper end of this range. As a growth company, it is crucial that we continue to invest in core capacity. You can also expect some positive effects on our cash flow from the net working capital. We see input costs coming down, which were a significant driver in the past for the inventory increase. And in addition, closer management of the inventory position should contribute positively. I want to be clear, though, that we will not sacrifice sales growth in favor of a fully optimized inventory position. We also see potential for improvement, when it comes to the accounts receivable position as well as from the trade payables. Anders mentioned through success of our first supplier conference, which allowed us also to improve payment terms that will show the impact over the next quarters. And finally, of course, the higher profit will contribute positively to the free cash flow. So what does that mean going forward for our capital allocation? Let's have a look at that. We will, of course, continue to invest into our growth. This includes investment into our people, go-to-market approach, innovation and capacity as well as systems and processes. This also means that we are not opposed to complementary bolt-on acquisitions. Of course, primary focus of the organization is focusing on our customers, delivering synergies and driving the integration. But as we all know, acquisitions are hard to plan and rarely come at the right time, but if the right target is on the market, we will not shy away from it. We will also continue to pursue a stable dividend policy. Our shareholders can count on a dividend ratio between 40% to 60% of the company's adjusted net result. As important as it is to say what one is going to do, it's just as important to say what one is not going to do. We will not expand outside the core capabilities. We will not pursue short-term margin gain at the expense of long-term growth opportunities, nor we will sacrifice the dividend in favor of maintaining a lower leverage. Focus on capital allocation and financial is important, but it's not the only dimension we're striving to maximize. We are committed to what we call the triple bottom line, only by finding the balance between financials, conserving resources as well as the well-being and diversity of our workforce, we will be able to secure long-term sustainable and profitable growth, reflected in our ambition to grow 6% to 8% through 2025, achieving an adjusted EBITDA margin of around 37% and executing on our clear capital allocation priorities. Sustainability is at the core of all what we do. Hence, it is clear that we continue to focus on reducing our climate and water-related footprint and look for opportunities where we can contribute to a circular economy. Our business is essential in and will contribute significantly to solving the challenges that our society and planet are facing. I think that became very clear throughout the day today. Last but not least, our employees are key to our success. A safe work environment is prerequisite to run our business. We do not compromise on this. We also believe in the collective strength of our workforce by embracing diversity and respecting differences and ensuring everyone feels a sense of belonging. We're also happy to see that the female gender of the first 3 management levels is close to 40%, female gender ratio, obviously. Before wrapping it up, I would like to talk a little bit how my agenda as CFO will contribute to our growth ambitions. First and foremost, ensuring that we have a proper and appropriate resource allocation. That means, on one hand, stringent cost management and ensuring that our cost synergies continue to be achieved. But on the other hand, this also means to make sure that we have enough funding for -- and -- funding and resources allocated to the spaces that we want to accelerate in. One is as important as the other one. We also need to ensure that the investments we made are balanced between a short and a mid- to long-term return horizon. The mix has to be healthy. As we will continue to be faced with more opportunities that we can cater for, prioritization remains key as well. A crucial enabler for growth is also to have a scalable infrastructure in place. And by that means our applications, systems, processes and data. Both legacy organizations come, fortunately, from a fairly homogenous application landscape. And this gives us now the opportunity to standardize and harmonize our business processes and systems, system set up even further. An early integration our core applications such as the ERP, such as the HR information system, the CRM will be an accelerator in becoming one company. We see a tremendous opportunity and chance to reduce complexity, simplify the setup and build a lean, strong and state-of-the-art platform for growth. At the end, it is our goal to have relevant business insight at the tip of our fingers whenever needed to drive database decision-making throughout the organization. Let's summarize. Novonesis is in very good shape. We are in a strong and financial and -- healthy financial position. We are on track delivering profitable, sustainable growth, and we have a clear capital allocation model, and this is just the beginning. Thank you.

Thank you, Rainer, and thank you to the rest of the team here. So now we're going to invite the rest of the executive management up here for the last Q&A session. So this is the opportunity to ask anyone in management a good question, hopefully a good question. So let me leave this here. Just wait a little bit until we have seated everyone. Watch out you don't fall down there. That's risky.

We have one, this is Søren with -- up there, the first one.

Søren from SEB. Just a question to the last team here presenting. You mentioned the 2% to 5% for productivity improvements a few times. I do remember a higher number from the old Novozymes, which means that it's been diluted by Chr. Hansen, which I guess is quite expected. But with the competencies you have in Novonesis today, do you think you can improve that number for the, you can say the old Chr. Hansen production assets?

We certainly hope so. But right now, that's a range we can foresee with what we're bringing together.

Maybe to add to that. When we say 2% to 5%, it's the classical yield optimization we talk about. And it's actually deliberate that I chose to bring more levers of how you can optimize for the future because the world is full of tools and we can actually exploit them to also deliver productivity gains that are outside of the classical yield optimization.

We have one here on the first row. Hang on a bit and you'll get a microphone.

Thomas from Nordea. You had a very nice margin bridge in the end that shows that you go from 34% to 37%. And then after '25, there is, perhaps, an option to go even higher, but you choose to invest in strategic growth opportunities. Could you maybe elaborate a little bit on how high could we go? Could we go to 40%, 50%...

So first of all, yes, we're coming from 34% to 37% adjusted EBITDA margin in 2 years. So that is quite impressive. So please do not extrapolate that kind of development. But 37%, is it the end? No, but we also have to be very cautious that, of course, we need to invest into future and long-term growth. And not every initial, let's say, growth opportunity will probably come at the same profitability. So our strength is scale. So is there more possible? Yes, but let's be cautious, and we're going to actually come and give you really the numbers about that, second half of 2025 because all of that will be assembled together in our long-term plan.

Maybe, Claus, you want to put a little bit of color on what the initial new opportunity, but then how we will also feel comfortable and continue to expand that profitability.

So I think -- actually, Henrik talked about it, we need, of course, to invest in explorative platforms in the future. And as you see also, this comes with a risk. Some of them won't materialize. But in order for us to accelerate growth in the future, of course, we add -- have to add growth legs to the company.

Good. One here.

All right. Charles Eden from UBS. Just a quick clarification on the margin bridge. In that sort of '24 to '27, pricing positive contribution, input costs coming down, positive contribution. So can I just check, what you're saying is you're not going to have to give up pricing for input costs coming down. That was just a quick clarification.

Right. Yes. Pricing is here to stay, yes. We do value-based pricing, not inflation plus.

Perfect. And then my other question is just in terms of -- we've seen a lot of our potential growth opportunities here in new areas of potential development. When you have mergers in the space in the past, typically, there's also areas de-prioritized, exited. Is there anything at this early stage, from the combined business as you'd say, do we need that?

To not underestimate, and I will ask also Henrik to build, and all the business representative to chip in, don't under estimate in how did you get the blessing of having a stronghold base on how we produce and how we innovate. There is a benefit of being deleveraged. There is a benefit of being on 20 different markets. There is a benefit, because we cross-fertilize, plus the assets that we have, but also the innovation that we bring in. So there is a common trend from everything we do. Deprioritize, it would -- I would put the -- maybe the question -- the -- I would answer your question in a different way. We will continue to prioritize and invest only on biotechnology and only on the areas that they are accretive on what we do. And as long as we see that we are the best owner, then we'll continue to invest. Then it could be that some projects, they get delayed or the market is not ready. How do you call it, Tina, that you're breaking ground that we need to have the readiness. It could be that the market does not go fast enough. Okay, then we pause and we wait. Maybe, Henrik, you want to put more color also.

Yes. I completely agree. No, we have not seen anything that, due to the merger and due to the combination, would lead us to deprioritize. We are constantly of course assessing especially those higher-risk areas. You must also think about -- that some of the areas of both companies was going into are quite similar. So now all of a sudden, we just have more scale and more critical mass that could lead to, of course, an adjustment of the investment level. And that's exactly also this exercise that we're doing because we have more choices. We have multiple choices. So we need to have this conversation internally in how much risk do we want to take, what margin levels we want to be at, and how much -- how bold do we want to be. But there's no lack of things we could do for sure.

Thank you, Henrik. We have here, Lars.

So your production today is on strains living from sugar, which requires arable land. Would you consider gas fermentation as an alternative? Is that too far from your core? Or why would you not?

Yes. So it is a little far-fetched, you could say, as the microorganisms that we use and actually have the productivity for making these precision fermentations, they thrive better on, let's say, C2, C4 and C6, that's sort of the buildup of the whole metabolism of these cells. So the gas fermentations rely on simple C1s. That is very ancient technology, I would say. That's how life started on the planet. And then it actually evolved in terms of productivity and metabolism to the C2, C4 and C6. But as you know, we are looking into and exploring and this is blue sky. We are exploring using acetic acid as a fermentation base and we can show already that we can use that. And acetic acid, you can actually come -- that doesn't have to come from agricultural resources. It could actually be produced through CO2 and electricity in the future. It comes at a cost, and it's early days.

Thank you, Claus. Up here, André?

André from Danske Bank. I just have a question regarding the cost synergies because I understand you continue to expect those will be realized within 3 years despite you have a run rate of 80%. But you reiterate that target of 3 years and don't, either expect them in 2 years, or even elevate the target beyond EUR 80 million to EUR 90 million.

So the original assumption was that over the 3 years or in year 3, we'll have harvested EUR 80 million to EUR 90 million in cost synergies. We are saying we are in year 1, which is normally expectation you want to get the majority or -- in synergies harvested. When you combine 2 companies, we are already at an 80% run rate. So therefore, the majority, you will already see next year, actually, if you take 80% of roughly EUR 85 million, at EUR 68 million, those actually you will already see next year in hitting our P&L. And that's what gives us good comfort. There's going to be some incremental, right, to the EUR 80 million, EUR 90 million, another EUR 15 million that will come over time. And also we have, by combining systems, by continuously optimizing the organization. So it's not -- it's one, is the time frame, the 3 years, that's over 3 years, EUR 80 million, EUR 90 million and we are already very fast and achieved them within the first 5 months, 80% of those.

Chetan from JPMorgan. One number, which was conspicuous in terms of absence today, was ROIC. I think you guys used to have 20% ROIC target, including goodwill. Now of course, goodwill is…

That we're not going to hold, and I'm not going to comment on that. I imagine that the goodwill is going to be a bit bigger. We're going to see that at half year. But ROIC, yes, we will come back to ROIC. But to be honest, in a year of the transition of where there is so much happening, we wanted to get the right base. And then with the 2025, well, it's to reestablish that again.

The second question was just thinking back, I think both companies have 2 different platforms for microbial fermentation. I guess the IP technology is different. Is there a path to consolidate that technology base for 2 different platforms at some point, not in the next 2 years but 5 years, 10 years? Thinking given you spend 20%, 25% on productivity improvements, which is duplicated across 2 platforms today, but can there be 1 platform in the 10 -- 5 to 10 years?

So I can start, Henrik and Claus can add. It's important to stress that everything we do out of the company, based on fermentation, a significant part of what we do on the recovery side is actually also a similar technology. But on the one side, we do enzymes and then we do microbes. And it is not the same. And that means that the assets we have, we will probably be continuing to leverage as they are today. So it's not that we have a grand plan of sort of merging that into sort of fewer facilities in the short term.

And even within microbes, it's sophisticated. They actually grow in different ways, whether they are highly aerated, need air, oxygen or don't. So it is slightly with a caveat and a twist that they are different also in nature, yes.

The last simple question. Can you talk about your upgraded guidance on top line? Can you give a bit more color on what you see at the moment in terms of trends by markets?

We see -- and please then bring in your further comments, but we see, overall, strong momentum across the portfolio. I mean, the driver of moving on the upper range of our guidance, it is by strong momentum across the company. We see continued pull from our customers. And then -- across all areas. And then more importantly, we see the team 100% aligned. We not lost one single order. We're not delaying a single shipment. We are on the [ bush ]. We already have all the sales organization trained with the capability to cross fertilization. So I would say it is the combination of both strong momentum. It is the combination of collecting the fruits of a lot of work done in the plants, putting more fruit on the emerging geographies, having the innovation that it's flourishing. And then, yes, a team which is fully rallied and just capitalizing on the good momentum in the market. What would you…

No, but you're saying it completely. I think we were running through -- into the year at day 1 with the biggest priority being the continuity of what we had already with the customers. And we have shown them that we have lived up to that commitment. And then there has been a good sentiment also in the food markets. We see a reestablished confidence in Europe, of buying, which is also a positive. So overall, a good positive momentum on the food and beverage side.

And we say the same on the planetary health side. What we also saw in Q1 seems to be continuing the positive trends.

Thank you for that answer. Georgina, up here.

It's Georgina again from Goldman Sachs. For Claus, please. You had a nice slide showing your late-stage innovation pipeline, 200 projects. I was wondering if you would venture a euro number and what you'd expect your conversion rate to be?

No, I wouldn't venture euro number. And it's also clear that our pipeline is so large, of course, consists of different elements. There are different needs in the business and, in some cases and some businesses, there is a constant need to renew the technology. For example, you take yogurt cultures, and Jacob can talk a great deal about that. That's actually about not upsetting production within dairies. And that means a constant renew and monitoring of the performance of the plants and the technology, culture technology you're providing. That needs a constant renew. That's a different one. It, of course, gives you the market leadership and pricing power, but maybe it doesn't add so much to the growth. but it comes in a nice IRR, right, because of the features. And then you have the more transformational programs. We often tend to speak a little bit about those. And they are bigger in size. They're bigger in, maybe, also growth contribution. But they are also bigger in cost to complete, right? So it's this balance that we are looking across. It's this balance in time. We can just not focus on, let's say, the launches this year. We also have to look towards next year and the days beyond that, of course. So we really try to balance this for short-term impact and long-term impact.

We have a question here.

My name is Artem from Redburn Atlantic. I've got a question on pricing. I think, Ester you mentioned on the group level, as a rough indication, 1%, 2% pricing going forward. May I ask Jacob, Amy and Tina to comment on what pricing you expect from each division -- from each business roughly? I wouldn't expect a number range, but maybe like above or below the average for the group?

The average will be 1% to 2%.

Right. Maybe you can speak about why we feel comfortable that we will continue to the rough price.

Yes. So at least what I can talk about is that you could say, across the board, we are utilizing the value we are creating. And it's various ways how we create value in the different business areas but we are there, both to capture our fair share of that. But I think the key for us is, and we talked a bit about that also earlier on, that we have spent quite, a lot of time, across the organization, in both legacy companies, to secure that we have strong commercial capabilities on the pricing side and thereby securing that it's something which, you could say, remains and something which is sticky. And that's why you could say we are confident in that -- that it will contribute. And it'll contribute across the various areas. Some years, it might be some areas more; other years, something else more, but it is, across the board, we want to drive pricing as we move ahead.

If I may, human health, I think what we see is really the pricing opportunity is new product launches. So this is really about setting that price at the right point when we're at the selling point, when we are really selling the value propositions, the strength of the patented science, et cetera. That's the lever to drive pricing and growth. So as we grow, we have the opportunities to set that value pricing in place.

Yes, I would say the same. We have several thousand we win every year, and we set a new price point for every single one of them. And we set that with high diligence and an ability to share value fairly with customers. When they then introduce a price point and a solution, they need to have comfort that we're not just going to jump that up the year after. But we are going to, every year, adjust, as a minimum, with the inflation, right? So we get a continuity of that fair share.

Thank you. Jacob. I had 1 question in the very far back.

Mark Hiley from the Analyst Research. You didn't talk about 21st.BIO or Biotech, Biotherapeutics, some of these really longer-term human health technologies. Obviously, you sit within the Novo Group and their portfolio of 150 biotech companies. Is that just too small to matter at the moment? Or is that, like, something for the next CMD in 2 years' time maybe?

Maybe I can give a first go, and then Henrik can comment. So we're not looking to get into pharma. We are looking to help pharma with technologies. If some of you recall, maybe back a few years with corona, we were able to sell technology into the analytical space, into the diagnostics, actually, with a fairly good revenue and price points. And there is more opportunities in this space, and we're exploring that opportunities base. Now 21st.BIO is a different thing entirely. We are, of course, involved with 21st.BIO as we -- it's -- we've put in some of our technology. And that is to leverage areas that, for now, we don't see Novonesis necessarily entering. You saw the very healthy margins we have on gross margins. You've just seen our EBITDA expectations. And some of these areas are more bulk. So there's a reason, when I sort of showed the map of biosolutions, there are some of the areas in biochemicals and biopolymers and so on that are just different bulk markets than our, you could say, high-end solutions. And so 21st is a vehicle to explore the space with us as part of [ whole ] together with [ Novo Nordisk ]. Any comments on that?

Not much I can add to that, Claus.

Maybe just repeat, we're not entering in biopharma.

We have a question here and then one over here.

It's [ Mahesh ] from Bank of America. A few years ago, the organization started to talk about taking more risk in R&D. And it looks like your slide that you've really reallocated the resource out of the sort of the more modest iterations to the more ground breaking. Is it too early, at this point, to judge whether that R&D pivot has been successful? And then maybe somewhat related to that, to the respective business heads, projects like Nebraska and Freshness had specific commercial goals associated with them. Can you update where we stand on hitting those targets, both the time line and the absolute size?

Let me start and then we -- Claus and Amy and Tina build up, please. We are going to continue to focus on prioritization. This is -- I mean in a wall of endless opportunities or so growth opportunities, prioritization needs to continue to be the bread and butter of how we work. You heard me saying that. You heard our CFO saying, you heard Henrik say it. You saw everybody how we're continuously focusing on prioritization. And at its innovation, it comes implicitly with the curiosity of connecting a market need and bring in an answer. We have all the tools and the capabilities to make them happen. But then it's about the market readiness. We talk about plastic recycling, yes. The technology is ready. The solutions are ready. The enzymes are ready, Well, now Indorama is building a plant in France, and we're going to see scaling up. And we're going to see that moving forward. If that wouldn't -- and that's happening. In other cases, maybe we see the technology getting a little bit slower. It's okay. We pause. What is very important is that we only continue to invest when the market moves ahead based on the original assumptions that we made. That's extremely important. So I would invite you to look. Like, we're planting seeds in a deleveraged, de-risked innovation portfolio. And then time and market says how those seeds raise. And we only invest more. We're agnostic. We only invest more when we see those growths coming in. And then also another area, before I pass the word on Nebraska and Freshness. Our asset portfolio is multi-purpose. When we invest on an asset, we invest on grit, we invest on fermentation that it can -- then it's incorporated on how we produce and it is one piece more on how we're enabling growth across all microbes and enzymes. You just heard Claus before saying those are maybe not so mixable, but proteins, enzyme, extremely within the same capabilities and cultures within the same capabilities, interchangeable and part of the grit, of how we produce.

And -- sorry, I can speak to the Blair, Nebraska investment in particular. So we look at the pipeline, which I spoke about earlier, of this precision fermentation with the taste and texture as well as the other areas, and we're pretty confident about the ability to deliver on that EUR 130 million of revenue growth that we had announced when we made the investment. Having said that, the time line, given the slowdown in the alternative meat market, in particular, we see, potentially, an extended time line because of the 2- to 3-year slowdown that we've had the last few years. Again, just building on what Ester just said, the beauty of being part of the network is, of course, we're already actually leveraging some of the capacity where we have growth in other areas to be able to leverage it, and that actually protects, and we're able to confirm the margin accretion targets that we had announced when we made that investment as well.

Do you want to confirm that?

Yes. Just to say all fermentation tanks are actually running 100% out of that facility, and that just talks to the multipurpose concept that we are capable of utilizing the plants, should one segment and [ that ] deliver exactly as we expected.

And on the Freshness platform, we are still, you could say, seeing strong contribution from that. We see strong growth, have done it so far this year and expect to do it for the full year. Luminous, as I just talked about, is another element in order to support that overall platform.

And maybe I can reflect a little bit about your question on does it mean that some of the risk areas or the new growth areas is less now important and so on. I think Henrik presented a very nice overview on what was sort of the -- what we called, so as in the past in legacy Novozymes, and what -- also the lighthouses in the Chr. Hansen legacies. And you actually saw some of those mature into being anchored in the businesses. And you also saw some of them still being looked at, do they pick up, don't they -- and you should be happy that we adapt to dynamic changes in the markets and the environment, actually, when we see something like what we've just observed now that, for example, the biomass is coming in the sense that [ Chr. Hansen ] are building plants, then, of course, we need to step back and take that in and say, okay, that will probably be to deliver, right? So it's a dynamic process.

We have another question over here.

This question is for Claus. First of all, congratulations, I think looking at the innovation engine you put together in the organization, it's hard not to get excited. My question relates to kind of the EUR 1 trillion opportunity that Ester outlined and kind of maybe the broader penetration of biosolutions in that. But as you've -- a few of you have highlighted, your toolkit, in the last 10 years, has evolved dramatically, whether that's high compute capabilities, synthetic biology, what you can do today is very different than what was possible 10 years ago. And looking forward, I mean maybe there are developments. I'm thinking things like de novo protein design. You're already working with DeepMind. Maybe there are opportunities that might enhance your toolkit further to give you materially better problem-solving capabilities, right, from that standpoint. So from a scientific or a technological standpoint, what prospects excite you for the next few years?

I think that's for me, right? Indeed, yes. No, compute power, as you said, is incredibly important. It does take little compute power to actually do full modeling of a protein in its environment, let's say, in a water and interacting with substrates. So this idea about de novo synthesis is -- we are still waiting for the compute power to fully take that in. And maybe you even need quantum computing, at some point of time, to deal with such phenomena. We are looking at that, of course. We are helped of being part of the -- especially the Novo family and the Novo Nordisk Foundation, who's setting up these sort of centers to understand these technologies. But I do think you have to look at this as tools, right? When I mentioned what we do, yes, we can take out time on the early discovery, but you still need physical samples. You still need to scale it. You still need to format microorganisms so it's stable for the application intended, right? And that's -- we will get more learning. And as we get more learning, we can accelerate those things as well. But then it's still about developing the application and so on. I'm just excited that this is happening so fast. I would not have foreseen us being able, 10 years ago, to actually bring some of the solutions today to the market, the -- sort of the innovation difficulty was simply not addressable 10 years ago. And you would also see, of course, as we move forward, that the cost to achieve the outcome will need to come down for some of the new applications as well. And the technology helps us do that.

Thank you, Claus. One question here in front.

It's André from Danske Bank. I just have a follow-up to the question on the targets on Freshness and Advanced Protein that was asked before. So just to be completely sure, do you still expect to deliver DKK 1 billion by 2028 in Advanced Protein and in Freshness? Or is that slashed or whatever?

I can go first. I mean, what we have said is that in order to reach, though, I mean, lots of strong developments, a lot of good growth. I mean, we do grow with double digit in that area this year, but it requires an unlock of the North American market, a liquid market in order to reach that and that, we are still working on. So it's too early to tell, but it's not slashed as you called it.

And as I said on Blair, we stick to -- we converted it to euros so the billion is now the EUR 130 million that you'll hear us talk to. So we believe we'll get there. We do see a slight delay in terms of the timing to reach it, not the 2028. And think about that in terms of timing, I would say, look, we are 2 or 3 years behind on growth because of the slowdown in the market in the recent years.

I would invite you to read us that we're always going to get one right, the value or the time, but maybe not both at the same time. But then we will bring something else to catch up if time gets delayed. Yes, plant-based protein, it's getting delayed relative to what we thought, it would be all thought or many of us thought it would be. So what, there are others that they're racing faster. And that's the beauty that this team brings. We're swift. We dance. We respond, we look at the wall and we bring those needs into answers and we deliver the growth. The total number doesn't change, but maybe we don't get it absolutely right on how or on when, but yes on where we're aiming and where we are and the seeds that we're creating for the future.

Up here, Nicola?

It's Nicola Tang from BNP Paribas Exane. I was intrigued by your comments earlier that in terms of training or salespeople around cross fertilization, it's done. Given the fact that, earlier, you were talking about the expertise and the complexity and having dedicated salespeople for specific applications. So I was wondering if you could just explain a little bit what you mean by it's done. And thinking about cross fertilization, I was always under the impression that it was a mandate for both your salespeople, but also your R&D people, so could you help me understand a little bit, I suppose, how you encourage or incentivize both sales and R&D people around cross-fertilization?

And that's good and that's so fair, Nicola. And I think it was me the one who said so. Let me build on it. We'll never going to be done, right? We'll never going to be done because we'll bring more solutions all the time, and we'll continue to bring more toolbox to our sellers. Maybe this means we are in a really good place, and we've done what we wanted to be at the moment that we are. But then we'll never going to be done. Because we'll be giving [ them ] more solutions because we will be learning more from what are the market needs and then we'll be bringing more answers. And then we will have also to bring the training and cross-fertilization. That's maybe putting a little bit color on the momentum on what we mean, good place. And then yes, much more to come.

Maybe I'll just add. Yes, our salespeople and our colleagues should, of course, mentioned this or talk to this. But they are deeply -- they're deep experts in an application, right? So they might be dairy scientists, dairy engineers or they might be in -- doing clinical trials in human health. They know each other's products. It's the application now that they're very deep on and it's a customer relationship.

And some of the -- when I refer to some of the cross learning, it's on the technology piece. I mentioned a specific example that a solution that works on, let's say, 1 type of substrates in 1 industry. It's bound to work on the other in a similar substrate in another industry. So we are having a sort of cross application innovation workshops as we start up new stuff. We always sort of look into what do we have available of knowledge, not only in a specific application, but also inspired from some of the other application areas as well, always in the start-up phase. That was witnessed -- as talked about, in the early stage, the churn and how you cycle through opportunities in that before you sort of defined and put a value to it and put it in the late stage.

Thank you, Claus. We have time for 1 more question. So I'm looking out like an auctioneer. I think Søren.

No pressure, Søren.

Just a question for Amy around the HMO area. Your main competitor seems to have already launched products in the market in China. I think you have said around 2025, so why are you a bit behind here? Or are you behind? And how can you catch up?

Yes. So there is a main competitor who has 1 HMO molecule in China. We've made really good progress this year with actually some good milestones being reached just in the last few months. And we actually believe we'll be, as you said, end of 2024, on the market as well, so closing the gap. I think what we're really excited about is that we are actually in the process on all 5, HMO molecules are already well into the regulatory process in China and making good traction. So yes, we're closing and very quickly closing that launch gap in China. And we actually believe we have the opportunity to be first to market with some of the rest of the 5 molecules.

Very good. Thank you for good questions, and thank you for good answers.

Thank you.

I think so. Before we round off and head upstairs, and, I think, actually, the rooftop will work because there's no rain. Ester will just share a few concluding thoughts. Please, I think you should come here.

Thank you. Thank you very much for going through this day with us. I am confident, after all the conversations with -- also within the break, after seeing the questions you bring in, after seeing the body language in the room, that you see what I see, that we see the power of biosolutions. And we see that the era of biosolutions has just started. And that we see that Novonesis is the right company to capitalize on this opportunity. And that, that we are the company who is going to deliver sustainable shareholder value creation. We have everything that's needed to make it happen. Jacob said it, we have the depth. We have that customer intimacy. Amy said it, we are the catalyst. We are the one who makes that special, brings that special catalytic effect on what the customers are seeking for. Tina just said it, as the markets mature, as the readiness is there, we're going to be there making it happen. We have the right foundation, Henrik. We are doing an amazing job putting these 2 companies together. And yes, we have the blessing, God bless you, Claus and Anders of the amazing capabilities we bring from an R&D and from a production perspectives, gluing and putting all those opportunities together. And our CFO, said it very, very clear. This is just the beginning. We're going to secure a strong performance. We are going to secure a strong performance through continuous prioritization. We are ready. We're ready to better our wall with biology. Thank you very much.