Audited by PwC

Statement of the Board of Directors and Executive Management

Print

The Board of Directors and Executive Management have today considered and approved the Annual Report of Novozymes A/S for the financial year January 1 – December 31, 2011.

The Consolidated Financial Statements are prepared in accordance with International Financial Reporting Standards as adopted by the EU, and the Financial Statements are prepared in accordance with the Danish Financial Statements Act. Moreover, the Consolidated Financial Statements and the Financial Statements are prepared in accordance with additional Danish disclosure requirements for listed companies. Management’s Review is also prepared in accordance with Danish disclosure requirements for listed companies.

In our opinion, the accounting policies used are appropriate, and the Group’s internal controls relevant to preparation and presentation of the Annual Report are adequate. The Consolidated Financial Statements and the Financial Statements give a true and fair view of the financial position at December 31, 2011, of the Group and the Company, and of the results of the Group and the Company operations, and of consolidated cash flows for the financial year 2011.

In our opinion, Management’s Review includes a true and fair account of the development in the operations and financial circumstances of the Group and the Company, of the result for the year, and of the financial position of the Group and the Company as well as a description of the most significant risks and elements of uncertainty facing the Group and the Company.

In our opinion, Novozymes A/S adheres to the AA1000 AccountAbility principles, and environmental and social data are stated in accordance with the accounting policies.

We recommend that the Annual Report be adopted by the Annual Shareholders’ Meeting.


Bagsvaerd, January 19, 2012

 

Executive Management

 

 

Steen Riisgaard
President & CEO

 

 

Benny D. Loft

Peder Holk Nielsen

Per Falholt

Thomas Nagy

Thomas Videbæk

 

 

Board of Directors

 

 

Henrik Gürtler
Chairman

Kurt Anker Nielsen
Vice-Chairman

Agnete Raaschou-Nielsen

Jørgen Buhl Rasmussen

Lars Bo Køppler

 

 

Lena Olving

Mathias Uhlén

Paul Petter Aas 

Søren Henrik Jepsen

Ulla Morin
 

Independent Auditor's Report

To the Shareholders of Novozymes A/S

Report on Financial Statements and Environmental and Social Data

We have audited the Consolidated Financial Statements, the Parent Company Financial Statements, and Environmental and Social Data of Novozymes A/S for the financial year 1 January to 31 December 2011. The Consolidated Financial Statements and the Parent Company Financial Statements comprise income statement, balance sheet, statement of changes in equity and financial notes, including summary of significant accounting policies for both the Group and the Parent Company, as well as statement of cash flows and financial resources and statement of comprehensive income for the Group. The Consolidated Financial Statements are prepared in accordance with International Financial Reporting Standards as adopted by the EU, and the Parent Company Financial Statements are prepared under the Danish Financial Statements Act. Moreover, the Consolidated Financial Statements and the Parent Company Financial Statements are prepared in accordance with Danish disclosure requirements for listed companies. Environmental and Social Data are prepared in accordance with the accounting policies stated in accounting policies for Environmental and Social Data.

Management’s Responsibility for Financial Statements and Environmental and Social Data

Management is responsible for the preparation of Consolidated Financial Statements that give a true and fair view in accordance with International Financial Reporting Standards as adopted by the EU and Danish disclosure requirements for listed companies and for preparing Parent Company Financial Statements that give a true and fair view in accordance with the Danish Financial Statements Act and Danish disclosure requirements for listed companies, and for such internal control as Management determines is necessary to enable the preparation of Consolidated Financial Statements and Parent Company Financial Statements that are free from material misstatement, whether due to fraud or error. Furthermore, Management is responsible for preparing Environmental and Social Data in accordance with the accounting policies stated in accounting policies for Environmental and Social Data.

Auditor’s Responsibility

Our responsibility is to express an opinion on the Consolidated Financial Statements, the Parent Company Financial Statements, and Environmental and Social Data based on our audit. We conducted our audit in accordance with International Standards on Auditing and additional requirements under Danish audit regulation.  This requires that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the Consolidated Financial Statements,  the Parent Company Financial Statements, and Environmental and Social Data are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts, data, and disclosures in the Consolidated Financial Statements, the Parent Company Financial Statements, and the Environmental and Social Data. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the Consolidated Financial Statements, the Parent Company Financial Statements, and Environmental and Social Data, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company’s preparation of Consolidated Financial Statements and Parent Company Financial Statements that give a true and fair view and considers internal control relevant to the Company’s preparation of Environmental and Social Data that are prepared in accordance with the accounting policies for Environmental and Social Data in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by Management, as well as evaluating the overall presentation of the Consolidated Financial Statements, the Parent Company Financial Statements and Environmental and Social Data.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

The audit has not resulted in any qualification.

Opinion

In our opinion, the Consolidated Financial Statements give a true and fair view of the Group’s financial position at 31 December 2011 and of the results of the Group’s operations and cash flows for the financial year 1 January to 31 December 2011 in accordance with International Financial Reporting Standards as adopted by the EU and Danish disclosure requirements for listed companies.

In our opinion, the Parent Company Financial Statements give a true and fair view of the Parent Company’s financial position at 31 December 2011 and of the results of the Parent Company’s operations for the financial year 1 January to 31 December 2011 in accordance with the Danish Financial Statements Act and Danish disclosure requirements for listed companies.

In our opinion, the Environmental and Social Data for the financial year 1 January to 31 December 2011 are prepared in accordance with accounting policies stated in accounting policies for Environmental and Social Data.

Statement on Management’s Review

We have in accordance with the Danish Financial Statements Act read Management’s Review which comprises report, outlook and management. We have not performed any procedures additional to the audit of the Consolidated Financial Statements, the Parent Company Financial Statements and Environmental and Social Data. On this basis, in our opinion, the information provided in Management’s Review is consistent with the Consolidated Financial Statements, the Parent Company Financial Statements and Environmental and Social Data.

 

Bagsvaerd, January 19, 2012

PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab




Mogens Nørgaard Mogensen
State Authorized Public Accountant


Torben Jensen
State Authorized Public Accountant

Independent assurance statement on Novozymes’ 2011 sustainability reporting and adherence to the AA1000 AccountAbility Principles

To the Stakeholders of Novozymes

We have been engaged by Novozymes A/S’ Management to obtain moderate assurance (review) as to whether Novozymes adheres to the AA1000 AccountAbility Principles and to obtain reasonable assurance (audit) as to the quantitative environmental and social data including accounting policies for environmental and social data in Novozymes' 2011 Annual Report, pages 54–55, 61–63, and 86–88.

Criteria for the preparation of reporting on data

The criteria for the preparation of the environmental and social data are evident from the accounting policies for environmental and social data described in Novozymes' 2011 Annual Report, pages 61–63. The accounting policies for environmental and social data include information concerning which of Novozymes’ activities and functions are included in the reporting, types of data, Management’s reasons for choosing the data included and the accounting policies and methods applied.

Management’s responsibility

Adherence to the AA1000 AccountAbility Principles of Inclusivity, Materiality and Responsiveness is the responsibility of Management. Furthermore, Management is responsible for preparing the environmental and social data as well as for establishing data collection and registration and internal control systems with a view to ensuring reliable reporting, specifying acceptable reporting criteria and choosing data to be collected for intended users of the Annual Report.

Assurance provider’s responsibility

As assurance provider, it is our responsibility, on the basis of our work, to make observations and recommendations with respect to the nature and extent of Novozymes’ adherence to the AA1000 AccountAbility Principles as well as to express an opinion on the reliability of the environmental and social data in the Annual Report, pages 54–55 and 86–88.

Our team of experts has competencies within performing assurance of environmental and social data and within assessing such data and information. In addition, our team has competencies with regard to assessing sustainability management systems. We have in 2011 not performed any tasks or services for Novozymes or other clients which would have conflicted with our independence, nor have we been responsible for the preparation of any part of the Annual Report. Thus, we are independent as defined in the AA1000 Assurance Standard (AA1000AS (2008)) and we consider our team qualified to carry out this independent assurance engagement.

Scope, standards and criteria used

We have planned and performed our work based on AA1000AS, using the criteria in the standard to perform a Type 2 engagement, and in accordance with the International Standard on Assurance Engagements (ISAE) 3000, “Assurance engagements other than audits or reviews of historical financial information.”

We have worked to obtain:

  • A moderate assurance (review) as to Novozymes’ adherence to the AA1000 AccountAbility Principles
  • A reasonable assurance (audit) of the quantitative environmental and social data in the Annual Report, pages 54–55 and 86–88

Methodology, approach, limitation and scope of work

Our methodology has included procedures to obtain evidence of Management’s commitment to the AA1000 AccountAbility Principles and of the implementation of systems and procedures in support of the principles.

Our methodology has also included procedures to obtain evidence of the environmental and social data in the Annual Report. The procedures chosen depend on our judgment, including the assessment of the risks of material data misstatements. In conducting those risk assessments, we have considered internal controls relevant to the preparation and fair presentation of environmental and social data in order to design assurance procedures which are appropriate under the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Novozymes’ internal controls.

Based on an assessment of materiality and risk, our work has included:

(i) Enquiries and interviews with the chairman of the Board of Directors, members of Executive Management, staff from the Sustainability Development department as well as management of various corporate functions regarding Novozymes’ adherence and commitment to the AA1000 AccountAbility Principles, the existence of systems and procedures to support adherence to the principles and the embedding of the principles at corporate level.

(ii) Sample testing of key processes and controls which form part of management reporting systems, processes and procedures, and the obtaining of evidence supporting the environmental and social data disclosed in the Annual Report, pages 54–55 and 86–88. Our assurance on environmental and social data has been undertaken at chosen reporting units and combined with analytical assurance procedures on data covering the Novozymes Group.

Conclusion

In our opinion, the environmental and social data for the financial year 1 January to 31 December 2011 (pages 54–55, 61–63, and 86–88) are prepared in accordance with accounting policies stated in accounting policies for environmental and social data, and, based on our review, nothing has come to our attention causing us to believe that Novozymes does not adhere to the AA1000 AccountAbility Principles.

Observations and recommendations

According to AA1000AS (2008), we are required to include observations and recommendations for improvements in relation to Novozymes’ adherence to the AA1000 AccountAbility Principles.

Regarding inclusivity

Management’s strong commitment to inclusivity and stakeholder engagement continues. In 2011 Novozymes has strengthened its approach to stakeholder engagement through the Citizymes program and through the development of more systematic tools for stakeholder mapping and engagement. This development continues to form the basis of a structured and systematic stakeholder engagement process being integrated and applied across the organization.

Regarding materiality

Novozymes has integrated identification and assessment of materiality of sustainability issues into the ongoing management and governance processes, ensuring a systematic and documented approach to assessing materiality of sustainability issues.

Regarding responsiveness

Novozymes is committed to being responsive to stakeholders – through the Annual Report, through the ongoing dialogue with stakeholders and through the systematic approach applied in developing suitable responses to sustainability issues.

We recommend that Novozymes considers how to provide an easy-to-understand overview of sustainability issues that are material to Novozymes in a reporting context, e.g. the Annual Report or on www.novozymes.com, including information on dilemmas concerning enzymes and biotechnology and related social impacts to ensure a balanced communication on sustainability issues.

 

 

Bagsvaerd, January 19, 2012

PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab




Mogens Nørgaard Mogensen
State Authorized Public Accountant


Birgitte Mogensen
State Authorized Public Accountant