Audited by PwC

Letter from the CEO:

Changing the world together with our customers

Our vision is to secure the right balance between better business, cleaner environment, and better lives. Never has that vision been more relevant to the world than now, and for us that opens a window of opportunity. By being innovative and providing our customers with valuable solutions based on industrial insight, we can help them change the world – while growing our company.

In 2008 it became even clearer that the human race is exploiting the planet to the limit of its carrying capacity. Throughout the year there were various burning issues on the global agenda, such as climate change, scarce resources, limited supply, price increases, and volatility. This gave food for thought and inspiration to look for sustainable solutions.

Insight and solutions
We have been developing technologies, products, and processes to deal with sustainability issues for decades. Basically, our business is about enabling our customers to produce more and better products from less input and with less waste. We are thus well positioned and committed to playing a key role in addressing global challenges. Our aspiration is to ensure that our existing and future technologies, products, and solutions will make a significant contribution to the world of tomorrow.

In line with this, we have invested to reach the goal of developing enzymes and processes that will enable the production of ethanol from agricultural waste, so-called second-generation bioethanol. This technology could potentially replace more than 25% of the US and European consumption of gasoline. We have made great progress since we started many years ago, and will be ready to deliver enzymes on a commercial scale as early as 2010. However, we do not stop there. Our business addresses many different industries, and we are committed to delivering sustainable solutions to all of them. The key to success is to enable our customers to address these new challenges in such a way that they will emerge as leaders in their industries.

Going forward we must strengthen and build on our insight into our customers’ businesses, the industries in which they operate, and the global contexts that will influence their businesses. Our invitation to our customers is to “Rethink Tomorrow” with us, and our contribution to this partnership will be advanced, industrial-scale bioinnovation and insight into the global context into which the solutions must fit.

New ambitious targets
Our unique position in view of the global agenda has prompted us to raise our level of ambition, including our financial targets. Novozymes is a sound business and must remain so, in balance with pursuing cleaner environment and better lives. Otherwise, we will not be able to make an impact.

This means that our long-term target for organic sales growth is now growth of more than 10% per year. Similarly, we have raised the bar for operating profit margin and return on invested capital to more than 20% and 22% respectively. We have also committed ourselves to reducing our own CO2 emissions, to being recognized as a global leader within sustainability, and to being a preferred employer  globally.

Despite the economic slowdown, which will also impact Novozymes, we remain confident. The world needs sustainable solutions. We have the technologies, the insight, and the partnerships to enable us to address some of these needs in a significant way, and in that process we expect Novozymes to reach a new level.

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Steen Riisgaard
President and CEO

New long-term targets

"The global trends we are seeing and the growth we have experienced in recent years have led us to set ambitious new long-term targets, which will set out the path for moving our business to the next level."

See our new long-term targets.

Management in Novozymes

See a presentation of the members of Novozymes' Management here:

Board of Directors and Executive Management