Statements

    Statement of the Board of Directors and Executive Leadership Team

    The Board of Directors and Executive Leadership Team have today considered and approved the Annual Report of Novozymes A/S for the financial year January 1 – December 31, 2013.

    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 in accordance with the Danish Financial Statements Act. Moreover, the Consolidated Financial Statements and the Parent Company 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 Parent Company Financial Statements give a true and fair view of the financial position of the Group and the Parent Company at December 31, 2013, and of the results of the Group and the Parent Company operations, and of consolidated cash flows for the financial year 2013.

    In our opinion, Management’s Review includes a true and fair account of the developments in the operations and financial circumstances of the Group and the Parent Company, of the result for the year, and of the financial position of the Group and the Parent Company as well as a description of the most significant risks and elements of uncertainty facing the Group and the Parent 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 21, 2014

     
    Executive Leadership Team

     
    Peder Holk Nielsen
    President & CEO
     
    Per Falholt
     
    Andrew Fordyce
     
    Benny D. Loft
     
    Thomas Nagy
     
    Thomas Videbæk

     
     
    Board of Directors

     
    Henrik Gürtler
    Chairman
     
    Kurt Anker Nielsen
    Vice Chairman
     
    Lars Bo Køppler
     
    Mathias Uhlén
     
    Lena Olving
     
    Anders Hentze Knudsen
     
    Agnete Raaschou-Nielsen
     
    Lena Bech Holskov
     
    Jørgen Buhl Rasmussen
     

    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 the Environmental and Social Data of Novozymes A/S for the financial year January 1 to December 31, 2013. 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. The Environmental and Social Data are prepared in accordance with the accounting policies stated in the accounting policies for the 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 the 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 regulations. 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 the 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 the 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 the 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 December 31, 2013, and of the results of the Group’s operations and cash flows for the financial year January 1 to December 31, 2013, 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 December 31, 2013, and of the results of the Parent Company’s operations for the financial year January 1 to December 31, 2013, 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 January 1 to December 31, 2013, are prepared in accordance with the accounting policies stated in the accounting policies for the 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 the sections The Big Picture, Business Review, Strategy & Performance and Governance. We have not performed any procedures additional to the audit of the Consolidated Financial Statements, the Parent Company Financial Statements and the 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 the Environmental and Social Data.

    Bagsvaerd, January 21, 2014
     
     
    PricewaterhouseCoopers
    Statsautoriseret Revisionspartnerselskab
     
     
     
     
     
    Mogens Nørgaard Mogensen
    State Authorized Public Accountant
     
     
     
    Torben Jensen
    State Authorized Public Accountant

    Independent assurance statement on Novozymes’ 2013 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.

    Regarding the audit of environmental and social data, we refer to the Independent Auditor’s Report.

    Management's responsibility

    Adherence to the AA1000 AccountAbility Principles of Inclusivity, Materiality and Responsiveness is the responsibility of Management.

    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.

    Our team of experts has competencies with regard to assessing sustainability management systems. We have not performed any tasks or services for Novozymes or other clients in 2013 that 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 1 engagement.

    We have worked to obtain a moderate assurance (review) as to Novozymes’ adherence to the AA1000 AccountAbility Principles.

    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.

    Based on an assessment of materiality and risk, our work has included enquiries and interviews with the chairman of the Board of Directors, members of the Executive Leadership Team, senior management and staff from Corporate Strategy & Business Creation, Corporate Finance, Global Strategic Accounts, Communications & Public Affairs and Corporate Sustainability, as well as the Chinese affiliate, regarding Novozymes’ adherence and commitment to the AA1000 AccountAbility Principles, the existence of systems and procedures to support adherence to the principles, and embeddedness of the principles in the organization.

    Conclusion

    Based on our review, nothing has come to our attention causing us to believe that Novozymes does not adhere to the AA1000 AccountAbility Principles.

    Observation 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

    2013 has been a year of transition for Novozymes with a reorganization taking place, as a result of the new leadership and new direction taken by Novozymes. We noted a more customer-centric and value chain-based approach, which includes further integration of sustainability into Novozymes' business strategy, customer relationships and product and service innovation. These new developments will further enhance Novozymes’ ability to reflect stakeholders’ sustainability priorities within the business.
     
    We have no significant recommendations regarding inclusivity.

    Regarding materiality

    Novozymes continues to discuss, evaluate and determine the materiality of sustainability issues on an ongoing basis through the Sustainability Board and other governance processes involving senior management across the organization. By involving the regional presidents as associate members of the Sustainability Board, inclusion of regional sustainability issues across Novozymes’ countries of operation has been enhanced.

    We have no significant recommendations regarding materiality.

    Regarding responsiveness

    Novozymes has initiated new development initiatives that have enhanced responsiveness to stakeholders' needs and concerns. One example is the development and communication of Novozymes’ position on biofuels, where a new booklet is being introduced in 2014 to contribute to an informed discussion. Another example is the ambition developed for Novozymes’ future corporate reporting, and the continued efforts to develop a more integrated approach to reporting and the demonstration of value creation for stakeholders.

    While Novozymes continues to demonstrate sustainability leadership, we have recommended that Novozymes strengthen this leadership position by developing a framework for measuring and valuing positive and negative sustainability impacts associated with its business activities.

    Bagsvaerd, January 21, 2014
     
     
    PricewaterhouseCoopers
    Statsautoriseret Revisionspartnerselskab
     
     
     
     
     
    Mogens Nørgaard Mogensen
    State Authorized Public Accountant
     
     
     
    Torben Jensen
    State Authorized Public Accountant