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Click below to download The Novozymes Report 2015 in PDF format.

  •  The big picture
  •  Our business
  •  Governance
  •  Accounts and performance
  •  Supplementary

###FACTBOX JBR### 

By searching for new enzymes and microbial technologies, or improving existing ones, we deliver and apply innovation that has an impact and creates value for customers, improving performance and reducing costs. As a result, our business model fits well with current and future market trends. Together with our strategy, it sets out the framework for our operations and will ultimately enable us to reach our long-term targets.There are also risks associated with Novozymes’ operations, which are presented in the Risk management section.

Sustainability and good business go hand in hand
As a key part of Novozymes' value proposition and business model, sustainability is an innate part of all Novozymes’ products, which offer manufacturers more sustainable alternatives to traditional industrial processes. Sustainability is evident in our agreements with suppliers, our production, and our partners’ and customers’ application of our products. Our focus on sustainability also gives us a competitive advantage as customers increasingly look for sustainability as a differentiator.

Novozymes'
business model

  • EXPLORE THE BUSINESS MODEL

    Explore our business model and see how we innovate, produce and supply our biological solutions to customers in various industries worldwide.

  • CUSTOMERS AND PARTNERS

    Using Novozymes’ enzymatic or microbial solutions, our customers save costs and lower the environmental impact of their production by reducing raw material requirements, substituting other inputs and improving product quality. By partnering closely with our customers, we gain a better understanding of their needs and challenges. In turn, we help them improve their businesses today by providing new insights and innovations that help them achieve their goals. Novozymes also partners closely with other companies, such as Monsanto in the BioAg Alliance and DSM in animal feed. These partnerships benefit from Novozymes’ strong innovation skills and manufacturing expertise, combined with partners’ key skills in areas such as screening, testing and commercialization, and make it possible to meet customer needs more effectively. Partnering with other companies gives Novozymes the opportunity to explore and enter into new business areas faster and more efficiently.

  • ENGAGING WITH THE WORLD

    Novozymes’ purpose is to find biological answers for better lives in a growing world together with customers, consumers, governments, academia and many others. To do this, we are dependent on working together with external partners and opening up our business model to take in ideas from outside. Therefore, Novozymes engages in a variety of fora and "conversations" on stages throughout the world. For instance, we partner with the U.N. and other governmental institutions on sustainability, and with academia on improving fundamental research. We also engage in active debate with politicians and other drivers of the sustainability agenda worldwide to create better conditions for industries that thrive with our biological solutions. In essence, we take part in dialogue on the world’s pressing challenges, develop solutions for some of those challenges, profit from doing so, and then further invest in finding biological answers.

  • INNOVATION

    Novozymes’ biotechnological platform is founded on extensive knowledge and expertise within enzymes and microorganisms. Working closely together with our partners and customers, we are able to innovate and develop technologies that can be applied effectively in our customers’ production, increasing their operational efficiency and improving the performance of their products. Novozymes develops unique solutions that would be difficult and expensive for our customers’ R&D teams to develop themselves. Often, our innovation teams work as an extension of their teams.

    Products generally take between two and five years to go through Novozymes’ innovation pipeline from idea to market, but can also take less than one or up to 10. For some industries, there is a lengthy regulatory process before a product can be sold commercially. Novozymes’ innovation pipeline has a very high completion rate, so most products make it through, but not all are successful in the market. Improving the commercial hit rate is an important focus area. Novozymes also continuously re-innovates its product portfolio to maintain product value and generate new patentable innovations.

  • PRODUCTION

    Novozymes uses fermentation to produce enzymes and microorganisms. Our global production setup enables us to do this where the necessary technology and skills are available to suit local needs and conditions. We produce our enzymes at five core plants worldwide and three satellite plants, whereas microorganisms are produced at eight facilities worldwide. At Novozymes, our focus on sustainability in our own operations matches the importance we place on the performance and sustainability effects our products provide to our customers and the world. We aim at sustainability leadership in everything we do.

  • SUPPLIERS

    Through an efficient supplier management system, Novozymes ensures that its suppliers – mainly of agricultural-based raw materials – contribute to sustainable solutions for our customers. Our trusted suppliers must balance reliability, quality and efficiency with a passion for sustainability and innovation. We partner closely with them in efforts to innovate and implement responsible solutions that have an impact on the world. Read more about our supplier management efforts.

  • TECHNICAL SERVICES

    When our solutions are ready for application in our customers’ value chains, Novozymes’ technical service teams help them adopt each innovation smoothly to ensure the expected value and effect are delivered. These teams are Novozymes' implementation taskforce, innovating for customers at all times as their technical expert, problem-solver and advisor. For instance, technical service teams help customers replace other inputs with an enzyme solution, or perform troubleshooting at the customer’s production facilities. They also adjust enzyme combinations to suit local recipes, for instance in the brewing and baking industries.

    Our technical service teams set us apart from competitors because we are able to optimize the use of our products and make the necessary adjustments to maximum effect for the customer. Working closely together with customers, they combine Novozymes’ global R&D capacity with deep industry experience to bring customers new value. The knowledge gained in the interaction with customers also feeds back to our R&D pipeline and helps future innovations, so together we can evaluate our progress and rethink tomorrow.

  • DISTRIBUTION

    The distribution of Novozymes’ products to customers depends on industry dynamics. Within Agriculture & Feed, distribution is conducted by Monsanto and DSM respectively, as they are responsible for the commercial aspects of our partnerships. In Bioenergy and Household Care, most distribution is direct from Novozymes to customers. In Food & Beverages and Technical & Pharma, we have a more mixed distribution setup, with more distributors being used globally as well as regionally.

  • CUSTOMERS AND PARTNERS

    Using Novozymes’ enzymatic or microbial solutions, our customers save costs and lower the environmental impact of their production by reducing raw material requirements, substituting other inputs and improving product quality. By partnering closely with our customers, we gain a better understanding of their needs and challenges. In turn, we help them improve their businesses today by providing new insights and innovations that help them achieve their goals. Novozymes also partners closely with other companies, such as Monsanto in the BioAg Alliance and DSM in animal feed. These partnerships benefit from Novozymes’ strong innovation skills and manufacturing expertise, combined with partners’ key skills in areas such as screening, testing and commercialization, and make it possible to meet customer needs more effectively. Partnering with other companies gives Novozymes the opportunity to explore and enter into new business areas faster and more efficiently.

  • MONETARY STREAMS

    Novozymes’ revenue comes from sales of products – enzymes and microorganisms. Technical services are included in the price of the product. Around 14% of revenue is reinvested in R&D, benefiting both product innovation and production economy. Novozymes’ most significant cost drivers are direct production costs, R&D and technical services. In terms of shareholder remuneration, Novozymes has a target of a ~40% dividend payout ratio and conducts regular share buyback programs to provide a return to investors.