Novonesis (NSIS) Status Update summary

Business Overview and Growth Drivers

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

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

• Biofuel market volumes are expected to increase and diversify geographically, with strong policy support in North America, Latin America, India, and Europe.

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

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

Innovation and Market Diversification

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

• Feedstock diversification is accelerating, especially in biomass ethanol and renewable diesel, with substantial upside potential.

• Expansion into new enzyme classes and yeast traits is unlocking additional value streams and enhancing customer performance.

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

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

Sustainable Aviation Fuel (SAF) and Future Opportunities

• Liquid sustainable fuels are critical for decarbonizing transport, with biofuels and SAF expected to grow through 2030-2050.

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

• Successful Alcohol-to-Jet (AtJ) developments could significantly expand global ethanol production by 2040, contingent on regulatory clarity and technology deployment.

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

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