Note 1 - Operating segment information
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 2011 (2010: DKK 16 million).
2011 2010
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 9,489  1,021    - 10,510  9,109  615    - 9,724 
Cost of goods sold 3,921  681    - 4,602  3,771  541    - 4,312   
Gross profit 5,568  340    -  5,908  5,338  74    -  5,412 
Sales and distribution costs 1,376  1,376        1,242  1,242 
Research and development costs 1,464  1,464        1,360  1,360 
Administrative costs 778  778        762  762 
Other operating income, net     50  50        69  69   
Operating profit (EBIT) 2,340           2,117 
Capital expenditure
Intangible assets 29  34  33    - 36 
Property, plant and equipment 962  210  118  1,290  950  264  126  1,340   
Capital expenditure, total 991  212  121  1,324  953  297  126  1,376 
 
Depreciation and amortization   
Intangible assets 37  45  106  188  38  16  66  120 
Property, plant and equipment 371  74  123  568  336  31  128  495   
Depreciation and amortization, total 408  119  229  756  374  47  194  615 
Write-downs and impairment losses   
Intangible assets   - 30    - 30    - 50    - 50 
Property, plant and equipment   -   -   -   - 14    -   - 14 
Write-downs and impairment losses, total   -  30    -  30  14  50    -  64 
Operating assets              
Inventories 1,603  138    - 1,741  1,482  158    - 1,640 
Trade receivables 1,859  112    - 1,971  1,660  112    - 1,772 
       

2011 2010
Geographical allocation   DKK million DKK million  
Revenue
Denmark 112  117 
Rest of Europe, Middle East, and Africa 3,707  3,447 
North America 3,691  3,580 
Asia Pacific 1,958  1,827 
Latin America   1,042  753   
Revenue, total 10,510  9,724 
Intangible assets and Property, plant and equipment
Denmark 4,010  3,027 
Rest of Europe, Middle East, and Africa 74  248 
North America 2,288  1,681 
Asia Pacific 1,967  1,849 
Latin America   439  131   
Intangible assets and Property, plant and equipment, total 8,778  6,936 
Capital expenditure
Denmark 358  389 
Rest of Europe, Middle East, and Africa 39  30 
North America 648  468 
Asia Pacific 250  426 
Latin America   29  63   
Capital expenditure, total 1,324  1,376 
 
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, intangible assets, property, plant and equipment, 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.