Audited by PwC

Note 1 - Segment information

Novozymes' operating segments reflect the way the activities are organized and controlled. Although revenue within Enzyme Business can be subdivided into further activities, the activities are considered to be integrated, as most of the production facilities are common to the segment as a whole. Gross profit is the primary parameter used when the Management evaluates the performance of the segments.
The functions for Sales and distribution, Research and development, and Administrative are considered as working for both segments and their cost are therefore allocated to the Corporate function. Revenue between the individual segments is deducted in the revenue of the selling company and amounts to DKK 24 million in 2008 (DKK 20 million in 2007).
2008 2007
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 7,533  613    - 8,146  6,893  545    - 7,438 
Cost of goods sold 3,300  487    - 3,787  3,075  414    - 3,489   
Gross profit 4,233  126    -  4,359  3,818  131    -  3,949 
Sales and distribution costs       1,061  1,061        921  921 
Research and development costs       1,096  1,096        995  995 
Administrative costs       745  745        675  675 
Other operating income, net       47  47        123  123   
Operating profit          1,504        1,481 
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. In addition, both 2007 and 2008 are affected by cost to closure of activities, including related impairment losses.
Capital expenditure
Acquisition of companies   -   -   -   - 605  111    - 716 
Intangible assets   - 32  25  57    -   - 14  14 
Property, plant and equipment 585  52  265  902  422  126  181  729   
Capital expenditure, total 585  84  290  959  1,027  237  195  1,459 
          
Depreciation, amortization, and impairment losses   
Intangible assets 22  33  42  97  35  51  95 
Property, plant and equipment 282  69  108  459  263  33  99  395   
Depreciation, amortization, and impairment losses, total 304  102  150  556  272  68  150  490 
Assets                          
Inventories 1,386  171    - 1,557  1,113  209    - 1,322 
Trade receivables 1,391  59    - 1,450  1,265  79    - 1,344 
                         
       

Geographical allocation
2008 2007
    DKK million  DKK million  
Revenue
Denmark 120  132 
Rest of Europe, Middle East, and Africa 2,937  2,907 
North America 2,981  2,412 
Asia Pacific 1,502  1,466 
Latin America   606  521   
Revenue, total 8,146  7,438 
Assets
Denmark 4,684  4,056 
Rest of Europe, Middle East, and Africa 468  501 
North America 1,504  1,456 
Asia Pacific 1,822  1,727 
Latin America   173  191   
Assets, total 8,651  7,931 
Capital expenditure
Denmark 451  708 
Rest of Europe, Middle East, and Africa 30  84 
North America 174  238 
Asia Pacific 294  420 
Latin America   10   
Capital expenditure, total 959  1,459 
 
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.