Note 1 - Segment information


Audited by PwC
Novozymes' operating segments reflect the way the activities are organized and controlled. Most of the production facilities are common to Enzyme Business as a whole, which is why the activities are considered to be integrated. Therefore, Enzyme Business cannot be subdivided into further activities; see also Company profile. Gross profit is the primary parameter used when Management evaluates the performance of the segments.
Cost of goods sold is allocated directly. The functions for Sales and distribution, Research and development, and Administrative are considered as working for both segments, and their costs are therefore allocated to the Corporate function. Sales between the individual segments are deducted from the revenue of the selling company and amount to DKK 16 million in 2010 (2009: DKK 24 million).
When evaluating the performance of BioBusiness, it should be considered that the activities within this segment are focused on building capacity for future sales, and the gross profit is therefore affected by costs for idle capacity.
2010 2009
Enzyme Enzyme
Income statement Business BioBusiness Corporate Total Business BioBusiness Corporate Total
  DKK million DKK million DKK million DKK million DKK million DKK million DKK million DKK million  
Revenue 9,109  615    - 9,724  7,798  650    - 8,448 
Cost of goods sold 3,771  541    - 4,312  3,322  426    - 3,748   
Gross profit 5,338  74    -  5,412  4,476  224    -  4,700 
Sales and distribution costs       1,242  1,242        1,118  1,118 
Research and development costs       1,360  1,360        1,207  1,207 
Administrative costs       762  762        751  751 
Other operating income, net       69  69        64  64   
Operating profit (EBIT)          2,117           1,688 
Capital expenditure
Intangible assets 33    - 36    -   - 11  11 
Property, plant and equipment 950  264  126  1,340  731  171  107  1,009   
Capital expenditure, total 953  297  126  1,376  731  171  118  1,020 
 
Depreciation and amortization      
Intangible assets 38  16  66  120  22  12  58  92 
Property, plant and equipment 336  31  128  495  315  42  115  472   
Depreciation and amortization, total 374  47  194  615  337  54  173  564 
Write-downs and impairment losses      
Intangible assets   - 50    - 50    -   -   -   -
Property, plant and equipment 14    -   - 14    -   -   -   -
Write-downs and impairment losses, total 14  50    -  64    -    -    -    - 
Assets                          
Inventories 1,482  158    - 1,640  1,411  124    - 1,535 
Trade receivables 1,660  112    - 1,772  1,400  68    - 1,468 
                         
       

2010 2009
Geographical allocation   DKK million  DKK million  
Revenue
Denmark 117  129 
Rest of Europe, Middle East, and Africa 3,447  3,083 
North America 3,580  3,046 
Asia Pacific 1,827  1,595 
Latin America   753  595   
Revenue, total 9,724  8,448 
Assets
Denmark 5,292  5,026 
Rest of Europe, Middle East, and Africa 549  435 
North America 2,134  1,650 
Asia Pacific 2,346  1,856 
Latin America   276  179   
Assets, total 10,597  9,146 
Capital expenditure
Denmark 389  270 
Rest of Europe, Middle East, and Africa 30  26 
North America 468  370 
Asia Pacific 426  332 
Latin America   63  22   
Capital expenditure, total 1,376  1,020 
 
The Group operates in four geographical regions: Europe/MEA, North America, Asia Pacific, and Latin America.
 
The geographical allocation is made on the basis of the Group's revenue, assets, and capital expenditure. The geographical distribution of revenue is based on the country in which the customer is domiciled. With a number of strategic customers, central deliveries are made to specified locations, and the final recipient is unknown. The stated geographical distribution of revenue may therefore vary significantly from year to year if the delivery destination for these strategic customers changes.

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