Company profile

RETHINK TOMORROW

A growing global population with a rising need for food, water, energy and other resources is pushing industries to get smarter and produce more with less. Novozymes supports this transformation by replacing conventional chemicals with enzymes and microorganisms, thereby helping reduce the water, energy and raw materials needed in many industrial processes.

In 2012, we helped customers reduce their CO2 emissions by an estimated 48 million tons.

We seek to enable the necessary balance between better business, cleaner environment and better lives.

Novozymes is the world leader in bioinnovation, producing a wide range of industrial enzymes, microorganisms and biopharmaceutical ingredients. Our biological solutions help our customers make more from less, while saving energy and generating less waste.

A growing population is putting increasing pressure on the world’s natural resources, and innovation is essential if we are to continue to meet the world’s basic needs. Novozymes’ solutions are part of the answer. Used in the manufacture of numerous products, our solutions improve the efficiency of industrial processes by saving energy and raw materials while reducing waste. The result is higher quality, lower costs and improved environmental performance for our customers.

Rethink Tomorrow

We use our expertise in biotechnology to develop innovative solutions, often in partnership with our customers. Novozymes has a global presence with over 6,000 employees on six continents. More than 20% of Novozymes’ global workforce is engaged in research and development, and 13-14% of sales are invested in research and development worldwide.

Our solutions are based on a unique industrial biotechnology platform and provide a wealth of opportunities for the world’s industries. Microbiology, high-throughput screening, protein engineering and fermentation technology are some of the tools on which we base our business. Combining industrial insight with this technology platform, we partner with customers across a broad range of industries to create tomorrow’s industrial biosolutions. To safeguard our biosolutions, we currently hold 7,000 granted or pending patents, which illustrate the possibilities that emerge when nature and technology join forces.

Sustainability is a part of us

Sustainability is an integral part of our business. The nature of our technology allows us to offer our customers solutions that enable them to optimize their use of raw materials and energy. This has become a competitive advantage as more customers look to use sustainability as a differentiator.

To support our ambition to drive sustainability around the world, we work closely with all players across the business value chain: suppliers, customers and society. Novozymes mitigates risks and taps into supplier strengths by requiring suppliers to balance reliability, quality and efficiency with a focus on sustainability and innovation. We work to increase CO2 efficiency by improving production processes. We also help our customers achieve further CO2 reductions through the application of our products. In 2012 alone, we helped customers reduce their CO2 emissions by an estimated 48 million tons.

We seek to enable the necessary balance between better business, cleaner environment and better lives. Through our commitment to international agreements and universal values we are able to identify issues and challenges of relevance to our stakeholders and our business. For example, we subscribe to the UN Global Compact and support the U.N. Convention on Biological Diversity to help steer the global agenda towards a more sustainable world.

It is important for Novozymes to be a transparent and responsible business. Our cross-functional sustainability organization, responsible for setting sustainability targets, mirrors our value chain and is built upon multistakeholder engagement. Learn more about our long-term targets in the Long-term targets and strategy section.

World leader in industrial enzymes

Our largest business segment, Enzyme Business, accounted for 91% of total sales in 2012. BioBusiness, consisting of microorganisms and biopharmaceutical ingredients, made up the remaining 9%.

We are constantly striving to expand our markets by developing new applications and introducing innovations in existing markets. With a 47% share of the global enzyme market in 2012, we retained our position as the world’s largest and leading producer of industrial enzymes, generating total sales of DKK 11,234 million and EBIT of DKK 2,745 million.

More than 700 products and 40 unique end markets globally

Novozymes sells products all over the world and serves a wide variety of industries, such as household care, bioenergy, agriculture, food and beverages, biopharmaceuticals, wastewater, textiles, and pulp and paper.

Enzymes are widely used in laundry and dishwashing detergents and account for a large part of Novozymes’ sales. Our solutions improve the performance of detergents by enabling improved stain removal, garment care and general wash performance. Enzymes can replace petrochemical-derived ingredients, and their unique catalytic action makes enzymes particularly useful ingredients in low-temperature and concentrated detergents.

Enzymes for the bioenergy industry, one of Novozymes’ main focus areas, turn starch (primarily corn) and cellulose into fermentable sugars used in the production of ethanol. Biofuels are an important step toward meeting the growing demand for renewable fuel.

Enzymes are also used extensively in the food and beverage industry to enhance the quality of bread, beer, wine and other products, and in the feed industry to increase the digestibility and nutritional value of animal feed.

Novozymes also supplies a range of microorganisms for industrial use in the cleaning, wastewater and agricultural markets, while its Biopharma business focuses on improving medical devices as well as drug delivery and formulation using unique recombinant albumin and hyaluronic acid technologies.

Touch the World

Our vision, company idea, commitment and values form our guide – what we call Touch the World.

  • Our vision: A future where our biological solutions create the necessary balance between better business, cleaner environment and better lives
  • Our company idea: Rethink Tomorrow
  • Our commitment: To continuously improve our financial, environmental and social performance to drive the world toward sustainability
  • Our values:
    • Dare to lead – because the future is created by you
    • Trust and earn trust – because nothing beats a circle of trust
    • Connect to create – because the world is full of ideas
    • Unlock passion – because passion makes dreams come alive

Innovation + marketing = robust product pipeline

Translating customer needs into cutting-edge, commercially viable solutions is critical to maintaining Novozymes’ robust product pipeline. To stay ahead of the competition, we use radical innovation to generate solutions that fundamentally influence the way industry operates and help our customers produce more with less. We also involve our customers early in the idea development phase to deliver high-value products that satisfy market needs.

Novozymes realizes that good ideas are everywhere, but they need to be discovered, improved and correctly implemented. Therefore, we use a structured approach to foster radical innovation within our business, while bringing in external experts and customers to strengthen solution development, pool knowledge and mitigate risks.

Among other internal tools, we use online, collaborative software and social media to crowdsource ideas for solutions to industry-specific problems, such as replacing a chemical with an enzyme to save energy, water and raw materials in a particular part of the textile-manufacturing process.

Connecting great minds
Colleagues from different Novozymes sites brainstorm online to provide and comment on ideas, and produce a shortlist of solutions reflecting where needs lie in functions such as marketing or R&D. The shortlist is typically generated within a few days, after which the prioritized ideas are defined and an assessment is made of whether they can be developed using Novozymes’ competencies. Around 15-20% of these ideas will reach the next stage, where a decision is made whether to develop them as new lead projects, potentially with relevant partners, or shelve them.

We also enable collaboration along the entire innovation value chain to maximize potential and reduce risks by clearly identifying needs and opportunities that take us from initial idea to viable product.

For instance, Novozymes’ Shandong Innovation and Business Center, opened in June 2012, integrates R&D, business development and stakeholder relations, and works with local stakeholders to commercialize the best innovations while meeting local market needs. Based in Shandong province on China’s dynamic east coast, the center taps into the province’s industrial biotechnology infrastructure, including universities and microbial research institutes, while leveraging its position as a major Chinese hub for the food-processing, textile, brewing and leather sectors, among others, which are all industries where we can offer cost-effective, sustainable solutions.

Market-viable products
Although radical innovation is about creativity and the next big idea, it must fall within the realm of what is technologically achievable and practically feasible – and be guided by market needs. Novozymes, and its partners, must also have the necessary research capabilities and marketing structure to enable the idea to reach scale.

A good example is Novozymes’ research alliance with Sea6 Energy, based in Chennai, India, to convert the carbohydrates found in seaweed into sugars that can be fermented to produce fuel ethanol, fine chemicals, food proteins and fertilizers. Launched in January 2012, the partnership sees Novozymes developing the enzymes needed for the conversion process, while Sea6 Energy contributes its offshore seaweed cultivation technology.

Both partners bring funds to the project, and their research synergies strengthen the business case. This is because the partnership complements Novozymes’ other efforts to convert biomass into fuel ethanol, while Sea6 Energy pioneers ways to ferment sugars derived from seaweed to produce fuel with minimal use of fresh water. The outcome is the development of a scalable, sustainable alternative to fossil fuels, and an advanced fuel ethanol whose feedstock takes no fertilizers to grow and puts no pressure on land use.

Early customer collaboration
To ensure the market viability of new products, and to realize the full potential of our partnerships, we make marketing and business development an integral part of the innovation process and involve customers in product development at an early stage. This allows for balanced investigation of proof of concept from both a technical and a commercial perspective. In other words, we quickly validate whether a proposed product performs as intended, its environmental impact, whether it satisfies customer needs at relevant cost, and what, if any, are its competitor technologies.

Early collaboration also reveals how committed a customer is to a project and speeds up commercialization of market-viable products. Typically, we see 6-8 products brought to market every year out of a pool of substantial projects.

We are currently trialing new internal structures to improve the flow of products in the R&D pipeline toward better-qualified solutions and to speed up the idea-to-market process. The success of these efforts will be measured by the increased commercial impact of new products and the continuous improvement of internal resource allocation to projects with the highest market relevance.

RETHINK TOMORROW

A growing global population with a rising need for food, water, energy and other resources is pushing industries to get smarter and produce more with less. Novozymes supports this transformation by replacing conventional chemicals with enzymes and microorganisms, thereby helping reduce the water, energy and raw materials needed in many industrial processes.

In 2012, we helped customers reduce their CO2 emissions by an estimated 48 million tons.

We seek to enable the necessary balance between better business, cleaner environment and better lives.

Finding growth in a challenging year

2012 was a challenging but ultimately rewarding year for Novozymes. CEO Steen Riisgaard takes a bird’s-eye view of the developments.

VIEW MORE

To the top