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, see also the section on Company profile. Gross profit is the primary parameter used when 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 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 24 million in 2009 (DKK 24 million in 2008).
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, 2008 was affected by costs for closure of activities, including related impairment losses.
2009 2008
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 7,798  650  8,448  7,533  613    - 8,146 
Cost of goods sold 3,322  426    3,748  3,300  487    - 3,787   
Gross profit 4,476  224    -  4,700  4,233  126    -  4,359 
Sales and distribution costs       1,118  1,118        1,061  1,061 
Research and development costs       1,207  1,207        1,096  1,096 
Administrative costs       751  751        745  745 
Other operating income, net       64  64        47  47   
Operating profit          1,688           1,504 
Capital expenditure
Intangible assets   -   - 11  11    - 32  25  57 
Property, plant and equipment 731  171  107  1,009  585  52  265  902   
Capital expenditure, total 731  171  118  1,020  585  84  290  959 
 
Depreciation, amortization, and impairment losses      
Intangible assets 22  12  58  92  22  33  42  97 
Property, plant and equipment 315  42  115  472  282  69  108  459   
Depreciation, amortization, and impairment losses, total 337  54  173  564  304  102  150  556 
Assets                          
Inventories 1,411  124    - 1,535  1,386  171    - 1,557 
Trade receivables 1,400  68    - 1,468  1,391  59    - 1,450 
                         
       

2009 2008
Geographical allocation   DKK million  DKK million  
Revenue
Denmark 129  120 
Rest of Europe, Middle East, and Africa 3,083  2,937 
North America 3,046  2,981 
Asia Pacific 1,595  1,502 
Latin America   595  606   
Revenue, total 8,448  8,146 
Assets
Denmark 5,026  4,684 
Rest of Europe, Middle East, and Africa 435  468 
North America 1,650  1,504 
Asia Pacific 1,856  1,822 
Latin America   179  173   
Assets, total 9,146  8,651 
Capital expenditure
Denmark 270  451 
Rest of Europe, Middle East, and Africa 26  30 
North America 370  174 
Asia Pacific 332  294 
Latin America   22  10   
Capital expenditure, total 1,020  959 
 
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.