Analysis of Novozymes Performance Using PWC Value Framework Report

This report offers an in-depth analysis of Novozymes' performance, focusing on its organizational health and alignment with the PWC value framework. The analysis is based on Novozymes' 2016 annual report and evaluates various elements, including strategy, business model, governance, risk management, financial and physical assets, customers, people and culture, innovation, brand, process, operational and economic performance, social and environmental aspects. The report assesses the comprehensiveness and accessibility of the information presented, examining both qualitative and quantitative aspects to provide a comprehensive understanding of Novozymes' performance. The report also discusses the integration framework of reporting from the financial report of 2016 that are in compliance with the organizational health and performance.

Running head: MANAGERIAL ACCOUNTING
Managerial Accounting
Name of the Student
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Executive Summary:
The value framework of the PWC provides the users with the internal and external ability of
decision-making. This often requires clear, concise and detailed information to obtain the
sustainable method of value creation and facilitating decision making relating to the current
performance of the organization and its upcoming prospects. The present study is based on
the assessment of the nature and quality of information presented by Novozymes in the
direction of organizational health and performance in compliance with PWC framework. To
better understand the performance of Novozymes the annual report for the year 2016 is
considered to assess the elements of framework to better measure the qualitative and
quantitative aspects. The report will further assess the comprehensiveness of the information
presented together with the accessibility of disclosure made in the report. Performance is
discussed in the areas of
Strategic elements
a. Strategy
b. Governance
c. Business risks
d. Business models
Performance elements
a. Economical
b. Segmental
Alignment with the PWC framework of integrated reporting
The analysis brings into line the PWC integration framework of reporting from the financial
report of 2016 that are in compliance with the organizational health and performance.

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Table of Contents
Executive Summary:..................................................................................................................1
Introduction:...............................................................................................................................4
Value Framework Elements: Strategy and Objectives...............................................................4
Value Framework Element: Business Model:............................................................................6
Value Framework Element Governance:...................................................................................7
Value Framework Element: Strategy: Risk Management:.........................................................9
Value Framework Element: Remuneration:.............................................................................10
Value Framework Element: Financial Assets:.........................................................................12
Value framework Element: Physical Assets............................................................................14
Value framework element: Customers:....................................................................................16
Value framework element: People and Culture.......................................................................17
Value Framework Element: Innovation...................................................................................19
Value framework element: Brand and Intellectual Assets.......................................................20
Value framework element: Process and Supply Chain............................................................22
Value framework element: Operational Performance..............................................................24
Value framework element: Economic Performance................................................................26
Value framework element: Social............................................................................................30
Value framework Element: Environmental:............................................................................32
Value Framework Element: Segmental...................................................................................34
Reporting of materials:.............................................................................................................35

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Conclusion:..............................................................................................................................36
Reference List:.........................................................................................................................37

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Introduction:
The current report is based on the analysis and assessment into the quality and the
nature of the Novozymes performance reporting of the firm health in respect of the PWC
framework. Novozymes is regarded as one of the international market leader in the biological
solutions that produces a large variety of industrial enzymes and microorganisms. The
company offers solution to assist the customers in generating more from less, adapting to the
market changes, enabling the product known to customers and lowering down the costs. The
report will offer a in depth understanding of the performance information which is the vital
element and factor in decision making structure of the company with correct responsibility.
Value Framework Elements: Strategy and Objectives
Report Extract: Page 33:

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Report Critique:
Reporting characteristics that stimulates Strategic and Objective framework element:
a. There is a clear statement relating to strategic objectives and goals
b. Short, medium and long term strategic business targets
Extensiveness and Accessibility:
The strategic objective of Novozymes is to render improved performance every year
as the company has placed strategic partnerships and networks with the customers,
governments, suppliers and others that surround the company to make sustainable difference
(Lai et al., 2016). The company has indulged in lead innovation that are tailored to meet the
market needs. The corporate strategy of the company can be obtained easily and
comprehensively. The company has undertaken both the qualitative and quantitative aspects
of communicating its strategy and objectives in its annual report of 2016. The organization
strategy is initially communicated on page 33 which makes it prominent for the readers and
sets down the tone of the overall report. Additionally detailed strategic and objective goals
are stated in the Chairman’s report at page 49 section of the report. The strategic objective of
Novozymes is linked with the Key Performance Indicators (KPI).
Comprehensiveness:
The Chairman’s strategic review is liked with the organizations growth, business
model, and innovation and customer-oriented through reporting of;
a. Lead innovation
b. Emphasis on opportunities
c. Partnerships and networks with customers
d. Improving the capabilities and motivation of organizational growth

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Beside placing emphasis on the performance of the preceding years, the chairman of
Novozymes has provided a qualitative outlook relating to the strategic partnerships and
networking creation (Linder & Williander, 2017). The Chairman has additionally emphasised
on the sustainable environmental development in respect of the global management standard.
Conclusion and Strength:
The annual report of Novozymes for 2016 has provided explanation relating to the
strategic organization goals and objectives. The report is appropriately formatted and
straightforwardly understandable. Both the qualitative and quantitative aspects of the report is
related with the business goals with “good” overall presentation of the information.
Value Framework Element: Business Model:
Report Extract: Page 29
Reporting Critique:
Reporting characteristics that drive the Business Model framework element:

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a. Clear and vivid explanation of the business model that builds wide range of industrial
enzymes and microorganisms.
Extensiveness and Accessibility:
The business model of the company is communicated with the help of full one page
diagram inside the heads of Business Model in the annual report of 2016 (Bocken et al.,
2014). The information relating to the business model of Novozymes can be obtained through
table of contents under the “Our Business”. The model is lucidly formatted with sufficient
explanation of customers and partners, distribution, technical services, innovation, production
and suppliers.
Comprehensiveness:
The figure above explains the circular flow of business model where the company
engages with its customers and partners for promoting sustainable and efficient production
process (DaSilva & Trkman, 2014). The production and innovation strategy helps in building
long term business value by efficiently linking the organizations strategy with business goals.
Conclusion and strength:
The business model of Novozyme is clearly defined in one page which makes it easy
and comprehensive for the readers to understand. The elements surrounding business model
is evidently explained and the overall quality of the presentation is “Good”.
Value Framework Element Governance:
Report Extract: Page 49
Report Critique:
The governance structure of Novozyme states that the organization is remain
committed towards the transparency in reporting. The governance structure of Novozyme lay

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down the rules that regulates the governing of documents, annual general meeting, and
nomination of the committee members and policies of the board of directors (Aguileraet al.,
2018).
Comprehensiveness:
The corporate governance of Novozyme is evidently stated in the “Board of Directors
Composition and Responsibilities”. Novozyme in agreement with the Danish Legislation has
two tier system of management that comprises of the Board of directors and executive
leadership teams (Armstrong et al., 2015).
Novozyme implements the below stated corporate governance code of principles:
a. The audit committee is accountable for assisting the board of directors in monitoring
the accounting related aspects such as internal control and financial reporting.
b. The executive leadership team is accountable for ensuring appropriate management of
the organizational structure
c. The board of directors are accountable for overall administration and strategic
expansion of the company.
The governance structure of Novozyme provides that nominations are based on the
assessment of the factors namely the competencies, diversity and independence. The
governance structure provides qualitative info relating to the composition of the firm and
activities of every committee members.
Conclusion and strength:
The corporate governance report of Novozyme lay down the in depth explanation of
the numerous roles and responsibilities of the executives and directors towards transparent

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flow of information with greater degree of commitment and regulatory policies. Hence, the
quality of the exhibition is “Good”.
Value Framework Element: Strategy: Risk Management:
Report Extract: Page: 35
Report Critique:
The risk management process of Novozyme consists of the risk identification,
assessment, and reporting and risk mitigation.
Extensiveness and Accessibility:
The major risk and uncertainties of the Novozyme can be accessed in page 36 of the
report under the heads “Key Risks for 2017” which provides the readers with the easily
comprehensive understanding of the organization and mitigation process (McNeil et al.,
2015).

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Comprehensiveness:
Novozyme provides an in depth explanation of the main risk faced by the business.
The company identifies and mitigates that risk as early as possible that forms the integral part
of business and its partners (Hopkin, 2017). The annual report contains the two page detailed
description of the probable risk faced and potential impact faced by the business with process
for risk mitigation.
Overall conclusion:
Novozyme has placed its commitment in providing detailed explanation of risk and
measures adopted to mitigate risk. The risk management section of Novozyme is visibly
formatted with appropriate headings and charts which makes it easy for the readers to
understand. Therefore, the overall quality of information is “Good”.
Value Framework Element: Remuneration:
Report Extract: Page 50:

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Reporting critique:
The remuneration report of Novozyme lay down the method of rewarding and
remunerating its employees along with the senior executive of the organization.
Extensiveness and Accessibility:
Novozyme chairperson is accounting for recommending the remuneration of the
board of directors and executive leadership teams (Guillen et al., 2015).
The remuneration committee report consists of the following;
a. The remuneration policy for executive leadership teams

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b. The remuneration policy comprises of the salary, pension contribution, bonus and
stock based programs.
Comprehensiveness:
The remuneration committee report for Novozyme complies with the PWC remuneration
element. The below stated are the details for the computation of management remuneration;
a. Salaries and other forms of short-term benefits
b. Defined contribution plans
c. Expensed stock based incentive programs
The annual report of Novozyme consists of the well formatted and titled page named
as Remuneration Report at page 35 that evidently explains the management remuneration
policies and remuneration for employees. The remuneration policy is designed to promote
strong performance and assist creation of values (Lishchuk & German, 2015). The
assessment of remuneration report of Novozyme an assertion can be bought forward by
stating that the company has evidently communicated the plans for remunerating its
employees and management.
Conclusion and Strength:
On analysing the remuneration report of Novozyme it is understood that the company
has evidently communicated the remuneration policy in a transparent manner. The annual
report provides the figures, which is published exactly. The overall exhibition of report is a
“good”.
Value Framework Element: Financial Assets:
Report Extract: Page 117

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Report Critique:
Reporting characteristics that drive the PWC Finanical Assets framework element:
a. Disclosure of the book values of the assets
b. Disclosure of hedge accounting asset
c. Disclosure of the efficiency of asset and effectiveness
Extensiveness and Accessibility:
In respect of the PWC framework relating to financial assets the information
presented by the Novozymes is easy to understand in nature. The company has mentioned
about the asset that are ready for sale with hedge accounting assets (Barker & Schulte, 2017).
The assessment of the Novozymes performance is easy to understand since it is associated
with the relevant asset with a detailed one-page tabular representation of the figure has been
provided under the section of notes.

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Comprehensiveness:
The financial assets and the liabilities of the company are amortized at cost barring
the derivatives and other financial assets that are amortized and measured based on cost
(Curcuru, Thomas & Warnock, 2015). The notes section provides that the company has
carried these assets based on the fair value. These are as follows;
a. Loans and receivables
b. Assets that are available for sale
c. Hedge accounting assets
The tabular representation provides the understanding of the figures reported both in past
and present year in compliance with the organizational policies.
Conclusion:
The financial assets of the company is stated in the financial report under the notes
section. Novozymes has appropriately measured the current assets and non-current assets
along with the figures from the past and present years. This result in component of better
decision making. Hence, the quality of information reported is “Good”.
Value framework Element: Physical Assets
Report Extract: Page 165

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Reporting Critique:
Reporting Characterises depicts the Environmental Element Value:
a. Disclosure of the book value of the physical assets such as property plant and
equipment
b. Disclosure relating to both the present and the future values of the assets
c. Disclosure relating to the carrying amount of the assets
Extensiveness and Accessibility:
The understanding of the Physical Asset measurement techniques is used in the
annual report of Novozymes is easily obtained from the notes section of the accounting
policies. As evident from the accounting policies of the organization stated under the Note
Section primarily focussed on the standards of amendment and interpretation and recognition
of assets (Warren & Jones, 2018).
Comprehensiveness:
Novozymes reporting of the Property, Plant and Equipnent can be regarded as
extensive (Mathuva, 2015). There are some important attributes relating to the property plant
and equipment that is communicated below;
a. The asset valuation technique is based under the historical cost convention depending
the economic life of the asset
b. The amortization of the physical asset is based on the straight-line method over the
anticipated useful life of the asset.
c. Depreciation is based on the anticipated life of the plant and machinery of 5-25 years
Novozymes has effectively stated that the company based on the annual basis reviews
the residual value of the asset and its useful life and the same is adjusted if it is necessary for

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each of the reporting period. The company effectively reviews the carrying amount of the
property, plant and equipment to understand whether the assets have suffered any impairment
loss.
Conclusion:
Novozymes has included significant amount of detail in supporting the computation
of the fixed assets. Therefore, the overall quality of the report can be regarded a “Good”
presentation.
Value framework element: Customers:
Report Extract: Page 163
Reporting Critique:
Reporting Characteristics that depicts the PWC customer framework element:
a. Total number of geographically distributed customers
b. Geographical determination of customer revenue
c. Relationship with key customers
Extensiveness and Accessibility:
As evident from the annual report of the organization, it is understood that there are
no specific information relating to the customers (Khodakarami & Chan, 2014). With global

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expansion, Novozymes has provided information relating to customer segment which makes
it easy to understand the revenue derivation segment. The company has provided
geographical distribution of customers which states the geographical customer location with
total number of local customers.
Comprehensiveness:
Novozymes has provided the strategies that are in agreement with the strengthening of
the customer relations. A quantitative data provides the total amount of revenue derived from
the geographical locations of the customers (Nyadzayo & Khajehzadeh, 2016). On page
number 5 Novozymes has emphasised on the customer value creation with improved
customer relationship and partnership.
Conclusion:
Conclusively there are no other specific customer related information in this report
but a significant amount of detail has been provided relating to the geographical distribution
of revenue and outlook of the customers. Therefore, the overall quality of information
presented is good.
Value framework element: People and Culture
Report Extract: Page 34
Reporting Characteristics that promotes the People and Culture framework element:
a. Focusing on employee development
b. Enhancing the motivation and capabilities required to grow the company
c. Promoting cultural knowledge through updated version of Bio-energy University
d. Promoting effective work culture through improved employee behaviour,
communication and co-operations (Rahimi & Gunlu, 2016).

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Extensiveness and Accessibility:
The company with several social performance elements to promote the cultural has
provided a detailed corporate social responsibility and people development have been stated.
These comprises of the following;
a. Priority of ensuring safe and healthy working environment
b. Continued promotion of regional partners and educational activities for children and
adult.
c. Gender diversity through numerous personal characteristics, skills and experience.
d. Supervision of the financial, environmental and social performance of executive
leadership for the management of the company (Choudhury & Harrigan, 2014).
As depicted from the annual report of the Novozymes details has been provided
regarding relating to the strong development of people and culture by driving the employees
towards executive leaderships. The information relating to the people and culture has been
provided in a well formatted page with pictures placing emphasis on the concept.
Conclusion:
The reporting of Novozymes is lucid and clear as the company has provided better
understanding of the cultural policy. Therefore, the overall quality of the report is good.
Value Framework Element: Innovation
Report Extract: Page 77

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Reporting Critique:
Reporting characterises that generates Innovation framework elements:
a. Innovating and wide range of products and services
b. Innovation in the system of production
Extensiveness and Accessibility:
Novozymes has committed itself in establishing the biological centre of learning in
agreement with the innovation campus. Novozymes has placed its emphasis on increasing the
capacity of production so that it could reach its customers across the globe (Antonsen, 2017).
The company has specifically placed emphasis on the bio-innovation with innovation in the
areas of gene technology and biotechnology.
Comprehensiveness:
Taking account of the innovative section of Novozymes it is understood that the
company in a comprehensive manner has presented its details. The innovation provides that
the company has spent from the previous year a proportion of their total revenue in the
research and development activities (Storey, 2018). However, it is noticed that Novozymes in
no circumstances has provided any information relating to budget of their innovation
spending. Additionally, qualitative references have been made relating to the construction of
new innovation centre in attaining growth in the areas of bio-technology and gene
technology. It can be depicted from the annual report that Novozymes at no circumstances
has provided any information relating to the internal process. Innovation has been primarily
conducted to increase the manufacturing procedure which would result an increase in quality.
But there is no explanation of the long term or medium term strategies.
Conclusion and Strength:

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The innovation of Novozymes is referred in the strategic context of improving the
productivity. Therefore, it can be stated that the quality of the information that presented is
“Bad”.
Value framework element: Brand and Intellectual Assets
Report Extract: Page 37
Reporting Critique
The reporting critique related with Brand and Intellectual assets is shown below:
a. It can be observed that Novozymes has disclosed all the information related with the
Brand and Intellectual property of them in the annual report.
b. All the required accounting standards are followed for the reporting of brands and
intellectual properties.
Extensiveness and Accessibility
From the analysis of the annual report of Novozymes, it can be observed that it is the
responsibility of Novozymes to protect and safeguard all the information related with the
brands and intellectual property of the company. From the annual report of the company, it is
clear that the company has provided all the information related these two aspects in the
required areas. It can be seen from the annual report of Novozymes that any infringements in
the intellectual properties of the company can lead to the loss of business opportunities for

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the company (Bently & Sherman, 2014). From this aspect, it can be observed that there is a
connection between the profitability and intellectual property of the company as the loss of
business opportunity can lead to the decreased profitability of the company.
Comprehensiveness
The annual report of Novozymes states that the brand and intellectual assets of the
company has connection with some major aspects; they are as bwlow:
a. Infringement of the unique technology of the company has major negative effect on
the brand and intellectual assets of the company.
b. The loss of opportunity due to infringement of brands and intellectual assets can lead
to the decreased level of profitability of the company.
c. The prime responsibility of the vice president of Novozymes is to provide safety and
stewardship for brand and intellectual property (Williams, 2013).
Overall Conclusion
Thus, it can be concluded that the company has provided all the necessary information
for brand and intellectual property and the overall presentation is good.

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Value framework element: Process and Supply Chain
Report Extract: Page 29
Reporting Critique
The analysis of the annual report of Novozymes shows that the customers of the
company can bring efficiency in the production process with the assistance of the solution of
the company. In addition, the main aim of differed processes of Novozymes is to add value to
their customers. However, there is not any clear information about the business processes of
the company in the annual report.

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Extensiveness and Accessibility
In case of accessibility, it can be observed that Novozymes has provided all the
information related to processes in their annual report. Moreover, the company has used
pictorial presentation for providing better understanding to the users of annual report.
However, the company has not mentioned about the business process of them. In addition, it
needs to be mentioned that the company has not disclosed much about their various
operations of supply chain (Goetsch & Davis, 2014).
Comprehensiveness
The analysis of the annual report of Novozymes states that there is a positive
connection between the financial performances of the company with their business processes.
As per the annual report, the achievement of specific margin in terms of EBIT and ROIC is
necessary for increasing and optimizing their various processes. In addition, Novozymes has
only mentioned about the establishment of new production and supply chain facility in
Mumbai, India. Apart from this, there is not any mention about supply chain of the company
in the annual report (Drori & Honig, 2013).
Overall Conclusion
The above discussion states that Novozymes has not mentioned enough information
related with their business processes and supply chain in the annual report. Very few
information can be accessed about these aspect from the annual report of the company. For
this reason, the reporting of processes and supply chain in Novozymes is considered as
“ugly”.

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Value framework element: Operational Performance
Report Extract: Page 4
Reporting Critique
The main parameters for reporting critique of this aspect are as follows:
a. Growth in organic sales
b. Growth in EBIT margin
c. Growth in Net Profit
d. Growth in ROIC
Extensiveness and Accessibility
From the annual report of Novozymes, it can be observed that the company has
provided all the necessary information related to the above aspects. In the annual report,

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Novozymes has compared their operational performance based on two years that is 2017 and
2016 in order to provide the users of financial information with better understanding about
the operational performance. Apart from this, the key performance indicators of the company
provide the accurate picture of the operational performance of the company. Thus, on the
overall basis, it can be said that the annual report of Novozymes has high level of
accessibility (Hensen & Lamberts, 2012).
Comprehensiveness
The analysis of the annual report of Novozymes states that the company has provided
all the complete information about the operational performance of the company. For this
reason, deep connectivity is there among the aspects of operational performance (Dora et al.,
2013). For example, it can be seen that there is a connection between organic growth sale and
EBIT margin as the improvement in the RBIT margin depends on the increase in the organic
sales of the company. These entire aspects together positive influence the net profit growth of
the company (Prajogo et al., 2012.).
Overall Conclusion
Based on the above discussion, it can be observed that Novozymes has complied with
all the required standards for the presentation of the various aspects of operational
performance. in addition, the users of financial statement can easily access the provide
information from the annual report of the company. Due to all these reasons, the reporting
technique of Novozymes related with operational performance needs to be considered as
good.

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Value framework element: Economic Performance
Report Extract: Page 6, 159, 160 and 161

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Reporting Critique
The main critique area of this aspects are discussed below:
a. The effective communication and disclosure of the economic performance of
Novozymes so that users of financial statements can easily judge the financial health
of the company.
b. The determination of the financial growth of the company in the recent years. It
implies that that economic performance of Novozymes should contribute to determine
the financial growth of the company.
Extensiveness and Accessibility
The analysis of the annual report of Novozymes shows the clear result of the
economic performance of the company. From the income statement of Novozymes, it can be
observed that there has been an increase in the gross profit of the company in the year 2016
as compared to 2015. At the same time, increase in the EBIT level can also been seen
(Carlsson, 2012). It implies that the economic information of Novozymes is easily accusable
and they can be effectively judged.

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Comprehensiveness
It can be seen that there is a positive connection between the economic performance
and financial performance of the company. All the financial as well as economic aspects of
the company has been properly added in the annual report for the better understanding of the
users of financial reports (Schaltegger & Wagner, 2017). Novozymes has provided all the
necessary financial statements like balance sheet, income statements, and statements of
change in equity, cash flow statements and others. In addition, the company has also provided
notes to the financial statements in the annual reports (Delgado et al., 2014).
Overall Conclusion
From the analysis, it can be seen that Novozymes has presented all of their economic
information in an effective manner so that they can become easily accessible for the users of
financial statements. Thus, based on the discussion, it can be said that the presentation of
economic information of Novozymes is “good”.

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Value framework element: Social
Report Extract: Page 5
Reporting Critique
The main reporting critique related with social aspect of Novozymes is shown below:
a. The value and outcome created by the business organization in order to create positive
effect on the environed, community people and employees of the organization (Gray,
2014).
b. The main parameters for measuring the social performance of the company are water
efficiency, energy efficiency, frequency of occupational accidents and others.
Extensiveness and Accessibility
From the analysis of the annual report of Novozymes, it can be seen that one can
easily access the provided information related with the social and sustainable performance of

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the company. In this case, it can be observed that the company has presented the social
information in a well-formatted manner so that they can better serve the users of annual
report of the company (Hwang & Tan, 2012). The information is provided in tabular format
with the help of graphical presentation. This aspect has improved the accessibility of social
information of the company.
Comprehensiveness
It needs to be mentioned that there is a positive relation between the sustainability
performance and financial performance of the company. In today’s business world, people
have become cautious about the negative effects of business operations on the companies. For
this reason, business organizations with effective sustainable strategy get early preferences
from the customers (Griggs et al., 2013). The same aspect can be seen for Novozymes as
effective social strategy leads to effective financial performance for the company.
Overall Conclusion
Based on the above discussion, it can be seen that Novozymes has presented all the
details of their social strategies in a well-formatted manner. For this reason, this aspect of
Novozymes can well get a “good”.

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Value framework Element: Environmental:
Report Extract: Page 132
Reporting Critique:
Reporting characteristics, which stimulates Environmental Framework Element:
a. Business Values and outcomes that are directed towards environmental performance
and protection.
Extensiveness and Accessibility:
The environmental protection initiative is included under the section of
Environmental Data at page 132. One of the most significant reporting attributes that is
related to the environment is the detailed description of the lower carbon emission. The
section provides the detailed analysis of the carbon emission by comparing the figures from

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both the previous and current year (Thalassinos & Liapis, 2014). A tabular breakdown has
been provided relating to the emission that occurred with supporting commentary.
Comprehensiveness:
a. Positive energy savings
b. Improving the energy saving efficiency by optimizing the process of production and
applying the energy saving projects
c. Targeting for energy efficiency and renewable energy that drives the overall energy
performance.
The company with targeted measures of reducing the pollution and improving has
provided a detailed description the quality of environment has been stated by the company
(Scott, 2015). The company has employed several environmental protection plans with water-
intensive measures of managing waste is one of the example of environmental protection.
Conclusion and Strength:
The company has significantly considered the environmental impact and performance
in its annual report. Additionally, a comprehensive tabular representation has been provided
in the report regarding the emission. Therefore, the quality of the information presented is
“Good.”

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Value Framework Element: Segmental
Report Extract: 84 Page
Report Critique:
Reporting Characteristics that drive Segmental Framework element
a. Segmental performance: The individual business segment performance has been
stated in annual report, which is based on the geography, location and regions to
gauge into the better view of the business units (Carlon et al., 2015).
Accessibility:
The product revenue is comprehensively communicated both in terms of the
qualitative and quantitative in annual report (Macve, 2015). Performance based on the
regional and geographical location has been stated with the help of graphical representation
highlighting the proportion of revenue generated from across the continents.

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Conclusion and Strength:
The detail that has been provided in the annual report is a mixture of performance
targets and holds significant relevance to the organizational performance and outlook for the
readers to value. Therefore, the overall quality of information provided is good.
Reporting of materials:
Report Extract: Page 4
Material matters Critique:
The theory of materiality refers to the understanding of the information is required to
be disclosed in the form of omission or misstatement of it may misinform the stakeholders
namely the investors. Novozymes has addressed most of the necessary information to the
shareholders and investors. The incorporation of the highlight section at the beginning of the
annual report provide the readers with the brief overview of the firm’s performance with

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designed way of placing emphasis on the reader’s attention. The approach of Novozymes
creates a better information of maximizing the comprehension.
Conclusion:
On a conclusive note, the report has been carried out in the areas of external drivers,
strategy, resources, relationships and performance. There are circumstances of better quality
reporting by Novozymes as the company has presented a comprehensive and easily
accessible information to the users of financial statement. However, there are certain areas of
presentation that requires comprehensive reporting. Recommendations can be provided by
stating that Novozymes must improve those areas for better understanding of users.

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