30919246 2023-01-01 2023-12-31 30919246 2023-01-01 2023-12-31 1 30919246 2023-01-01 2023-12-31 1 30919246 2023-01-01 2023-12-31 2 30919246 2023-01-01 2023-12-31 3 30919246 2023-01-01 2023-12-31 1 30919246 2023-01-01 2023-12-31 2 30919246 2022-01-01 2022-12-31 30919246 2023-12-31 30919246 2022-12-31 30919246 2022-12-31 fsa:ContributedCapitalMember 30919246 2022-12-31 fsa:RetainedEarningsMember 30919246 2022-12-31 fsa:ProposedDividendRecognisedInEquityMember 30919246 2023-01-01 2023-12-31 fsa:ContributedCapitalMember 30919246 2023-01-01 2023-12-31 fsa:RetainedEarningsMember 30919246 2023-01-01 2023-12-31 fsa:ProposedDividendRecognisedInEquityMember 30919246 2023-12-31 fsa:ContributedCapitalMember 30919246 2023-12-31 fsa:RetainedEarningsMember 30919246 2023-12-31 fsa:ProposedDividendRecognisedInEquityMember iso4217:DKK NOVOZYMES BIOAG A/S Krogshøjvej 36, 2880 Bagsværd 30919246 Mikkel Viltoft The Executive Board and the Board of Directors have today considered and adopted the Annual Report ofNovozymes BioAg A/S for the financial year 1 January - 31 December 2023.The Annual Report is prepared in accordance with the Danish Financial Statements Act. We consider the accounting policies applied appropriate and the estimates made reasonable. In our opinion, the Financial Statements give a true and fair view of the financial position at 31 December2023 of the Company and of the results of the Company operations for 2023.In our opinion, Management’s Review includes a true and fair account of the matters mentioned and describes the most significant risks and elements of uncertainty facing the Company.We recommend that the Annual Report be adopted at the Annual Shareholders' Meeting. Bagsværd, Camilla Kinch Jensen Mikkel Viltoft Rainer Lehmann Camilla Kinch Jensen Chair To the Shareholders of Novozymes BioAg A/S In our opinion, the Financial Statements give a true and fair view of the financial position of the Company at 31 December 2023, and of the results of the Company’s operations for the financial year 1 January - 31 December 2023 in accordance with the Danish Financial Statements Act.We have audited the Financial Statements of Novozymes BioAg A/S for the financial year 1 January - 31 December 2023, which comprise income statement, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies (“financial statements”). We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Management is responsible for Management’s Review.Our opinion on the financial statements does not cover Management’s Review, and we do not express any form of assurance conclusion thereon.In connection with our audit of the financial statements, our responsibility is to read Management’s Review and, in doing so, consider whether Management’s Review is materially inconsistent with the financial statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated.Moreover, it is our responsibility to consider whether Management’s Review provides the information required under the Danish Financial Statements Act.Based on the work we have performed, in our view, Management’s Review is in accordance with the Financial Statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement in Management’s Review. Management is responsible for the preparation of Financial Statements that give a true and fair view in accordance with the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.In preparing the financial statements, Management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the financial statements unless Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:•Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.•Obtain an understanding of internal control relevant to the audit 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.•Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management.•Conclude on the appropriateness of Management’s use of the going concern basis of accounting in preparing the financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.•Evaluate the overall presentation, structure and contents of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that gives a true and fair view.We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Hellerup, PricewaterhouseCoopersStatsautoriseret Revisionspartnerselskab 33771231 Christian Møller Gyrsting Martin Jarness Schmidt Andersen State Authorised Public Accountant State Authorised Public Accountant mne44111 mne49061 5 year Financial Highlights2023 2022 2021 2020 2019Revenue 112,486,821 148,562,040 133,334,572 149,425,194 8,921,802Gross profit 422,227,177 364,470,630 232,609,203 201,915,895 379,114,561Operating profit 400,154,754 254,908,678 121,948,871 27,210,814 232,941,700Net financials 53,443,334 2,974,915 1,339,856 -1,835,593 -9,534,168Net profit for the year 309,011,928 272,818,768 119,174,788 -9,959,809 395,047,743Fixed assets 179,335,377 251,395,415 331,124,835 439,180,278 609,147,147Current assets 793,188,550 771,248,986 491,966,484 359,701,416 968,546,173Total Assets 972,523,927 1,022,644,401 823,091,319 798,881,694 1,577,693,320Share capital 600,000 600,000 600,000 600,000 600,000Total equity 729,271,208 820,259,280 637,440,512 593,265,724 1,003,225,533Gross margin 375.4% 245.3% 174.5% 135.1% 4249.3%Operating Profit margin 355.7% 171.6% 91.5% 18.2% 2610.9%Equity ratio 75.0% 80.2% 77.4% 74.3% 63.6%Return on equity 39.9% 37.4% 19.4% -1.2% 46.0%Key ratios have been prepared as described below:Gross margin Gross profit as a percentage og revenueOperating Profit margin Operating profit for the year as a percentage of revenueEquity ratio Equity as a percentage of total assetsReturn on equity Profit for the year as a percentage of average equityThe purpose of the company is to operate and invest in research and development, production and trade with biological solutions, herunder biotechnological products and processes, as well as any business related to this as determined by the Board of Directors. The company strives to operate on a sustainable and responsibleway, both financially, socially and environmentally. For the financial year 2023 the company has realized a profit of DKK 309,011,928 which is line with expectations.Equity as of 31 December 2023 was DKK 729,271,208.The company proposes to pay ordinary dividend for the financial year of DKK 400.000.000.Research and development activitesResearch and development is primarily within the field of Bioag products and processes.Expectations for 2024Revenue and profit for 2024 are expected to be at the same level as 2023. Novozymes BioAg A/S is part of the Novonesis Group. Refer to Novonesis to see outlook for the full Novonesis Group. The Annual Report has been prepared in accordance with the provisions of the Danish Financial Statements Act applying to medium-sized enterprises of reporting class C.With reference to section 112 of the Danish Financial Statements Act, the Company has omitted to prepare consolidated financial statements as Novozymes BioAg A/S and group enterprises are included in the consolidated financial statements of Novozymes A/S, Gladsaxe, CVR No 10 00 71 27.Recognition and measurementThe Company’s income and expenses are included in the Annual Report in consideration of full accrual of income and expenses.Assets and liabilities are initially measured at cost. Subsequently, assets and liabilities are measured as describedfor each item belowTranslation policiesTransactions in foreign currencies are translated into DKK at the exchange rates at the dates of transaction. Monetary items in foreign currencies are translated into DKK at the exchange rates at the balance sheet date.Realised as well as unrealised exchange gains and losses are recognised in financial income and expenses in the income statement.RevenueRevenue is recognized when the company has satisfied on its performance obligations and the customer hasobtained control of the goods sold. Revenue is measured at the value of the agreed transaction price, less VAT and taxes, as well as rebates and discounts.Cost of goods soldCost of goods sold include costs that have been incurred in fulfilling performance obligations and recognizing the revenue for the year. Other operating incomeOther operating income includes capital gains from sale of immaterial assets and gains from the relatedbilateral advance pricing agreements (APAs).Other external expensesOther external expenses include costs for administration, research, audit etc. Financial income and expensesFinancial income and expenses include interest, as well as gains and losses on financial assets, liabilities and transactions in foreign currency.TaxTax on profit for the year which comprises current tax for the year, change in deferred tax as well as any adjustments of previous years is recognised in the income statement. Deferred tax is measured under the balance sheet liability method and comprises all temporary differences between the carrying amount andthe tax base of assets and liabilities. Deferred tax on goodwill is not recognized unless amortisations ongoodwill are tax deductible. Deferred tax is measured on the basis of applicable tax rules and at the tax rate expected to be effective when the temporary differences are eliminated. Any changes in deferred tax due to changes to the tax rates arerecognised in the income statement.The Company is jointly taxed with the Danish enterprises in the Novo Holdings A/S Group.The tax of the individual enterprises is fully allocated on the basis of the expected taxable incomeIntangible assetsIntangible assets are measured at cost less accumulated amortisation and less any accumulated impairment losses.Goodwill is amortised over the expected life, which is 10 years. Expected life is based on an individual evaluation. Acquired patents, licences and know-how are amortised over their useful lives. Patents are amortised over their useful lives which are normally identical with the patent periods, and licences are amortised over the period of theagreement. Recorded patents, licences and know-how are amortised over 4-10 years.The carrying amounts of intangible assets are assessed on an annual basis to determine whether there is anyindication of impairment. If there is an indication of impairment, an impairment test is performed, and the asset is written down to the lower of recoverable amount and carrying amount.Investments in subsidiaries and other investmentsInvestments in subsidiaries are recognised at the cost of the shares. Impairment losses on the investmentsare recognised, however, where the impairment is considered to be of a permanent nature.Dividends received are recognized in the income statement as income from subsidaries and other investments. If the equity of subsidiaries or associates is negative and Novozymes A/S has a legal or constructive obligation tocover the company’s negative equity, a provision is recognizedReceivables Receivables are measured in the balance sheet at the lower of amortised cost and net realisable value which normally corresponds to nominal value less any loss allowance for bad debts. Loss allowancefor bad debts are determined on the basis of an individual assessment of each receivable. Financial liabilitiesFinancial liabilities are measured at amortised cost, substantially corresponding to nominal value. Financial liabilities include trade payables and intercompany payables. true Cash flow statementThe Company has not prepared any cash flow statement, see section 86(4) of the Danish Financial Statements Act 112486821 148562040 317414131 223957708 7673775 8049118 422227177 364470630 22072423 109561952 400154754 254908678 58610874 7544309 5167540 4569394 -5500000 87787200 55599547 12700000 392498541 332970793 83486613 60152025 309011928 272818768 19403547 41475970 19403547 41475970 159931830 204922881 0 4996564 159931830 209919445 179335377 251395415 16050 781 792560232 761695399 0 8500000 792576282 770196180 612268 1052806 793188550 771248986 972523927 1022644401 600000 600000 328671208 419659280 400000000 400000000 729271208 820259280 5500000 0 40519694 8053116 46019694 8053116 1596747 352252 93408109 107795772 96672365 79910816 5555804 6273165 197233025 194332005 972523927 1022644401 600000 419659280 400000000 820259280 0 309011928 0 309011928 0 0 400000000 400000000 0 400000000 -400000000 0 600000 328671208 400000000 729271208 Other operating incomeOther operating income in 2023 is related to sale of royalty agreements in previous years. Employee expensesThere were no employees in the company in 2023 or 2022. Acquired patents, licences, and know-how 2023DKKCost at 1. January 1,252,161,329 Cost at 31 December 1,252,161,329 Depreciation at 1 January 1,210,685,359 Depreciation for the year 22,072,423 Depreciation and impairment at 31 December 1,232,757,782 Carrying amount at 31 December 19,403,547 Financial income 2023 2022DKK DKKInterest income 37,106,139 16,046 Foriegn exchange gain 6,827,495 5,635,217 Interest on receivables from group enterprises 14,677,240 1,893,046 58,610,874 7,544,309 Interest income has been positively affected by accumulated interest income from the settlement of a long-standing tax case. Financial expenses 2023 2022DKK DKKBank charges (7,188) (6,989) Interest expenses (14,342) (1,873) Foreign exchange loss (5,146,010) (4,560,532) (5,167,540) (4,569,394) Investments in subsidiaries 2023DKKCost at 1. January 661,742,527 Additions for the year 5,611,932 Cost at 31 December 667,354,459 Impairment 1 January 456,819,646 Reversal of impairments for the year (10,600,000) Impairments for the year 61,202,983 Impairment 31 December 507,422,629 Carrying amount 31 December 159,931,830 Subsidiaries with published financial statements:Ownership Nameshare (%) Share capital Equity Net loss for the yearNovozymes BioAg S.A, Argentina (2022)94 ARS 2,296,801,473 ARS 2,485,321,667 ARS (1,475,784,278)The result for 2023 is impacted by an impairment in the subsidiary Novozymes BioAg S.A, Argentina of DKK 61.2 million due to inflation and financial results and a reversal of impairment in Novozymes BioAg Productos Para Agricultura Ltda, Brasilien of DKK 10.6 million. In addition a provision of DKK 5.5 million has been recognized related to constructive obligations in relation to Novozymes BioAg S.A, Argentina.In 2023 Novozymes BioAg DK A/S has not received dividends. In 2022 the company received DKK 88 million in dividends from Novozymes BioAg Limited, Canada.Other investments 2023DKKCost at 1. January 4,996,564 Disposals for the year (4,996,564) Cost at 31 December 0 Impairments for the year (4,996,564) Disposals for the year 4,996,564 Impairment 31 December 0 Carrying amount 31 December 0 Tax on profit for the year 2023 2022DKK DKKTax on profit for the year (96,672,370) (79,910,818) Deferred tax (32,466,579) 24,542,568 Adjustment of tax, previous year 45,825,125 0 Paid Withholding taxes (172,789) (4,783,775) (83,486,613) (60,152,025) Tax on profit for the year has been positively affected from the settlement of a long-standing tax case. The amount has been includas adjustment of taxes previous year. Share capitalShare capital amounts to DKK 600,000 and consists of 600 shares of DKK 1,000. 400000000 400000000 -90988072 -127181232 Deferred tax 2023 2022DKK DKKDeferred tax 1 January 8,053,115 32,595,683 Adjustment for the year 32,466,579 (24,542,568) Deferred tax 31 December 40,519,694 8,053,115 Deferred tax relates toIntangible assets4,268,7789,124,711Prepayments36,250,916(1,071,596)Deferred tax 31 December 40,519,694 8,053,115 Related partiesNovozymes BioAg A/S is a wholly-owned subsidiary of Novozymes A/S, Gladsaxe and is included in the ConsolidatedStatements of Novozymes A/S. The ultimate parent company preparing consolidated financial statements is theNovo Nordisk Foundation, Gentofte. The Novo Nordisk Foundation and its subsidiaries, i.e. the Novo Group and the Novo Nordisk Group, members ofthe executive boards of these entities and the management of Novozymes A/S as well as their close family membersare considered related parties. Related parties moreover comprise enterprises in which the above-mentioned group of people hold considerable interests.All agreements about these transactions are based on list prices when sales are effected to third parties wheresuch list prices exist, or the price has been estimated at the amount considered the market price. The majority of the agreements are renegotiated regularly. Contingent liabilitiesThe company has no contingent liabilities. The company is jointly taxed with the Danish companies of the Novo Holdings A/S Group, and is individually liable for the joint taxation liability. Events after the reporting dateNo events have occurred after the reporting date of importance to the financial statements. Annual report Auditor's report on audited financial statements ParsePort XBRL Converter 2023-01-01 2023-12-31 2022-01-01 2022-12-31 2024-06-07 Regnskabsklasse C, mellemstor virksomhed 2024-06-07 30919246 NOVOZYMES BIOAG A/S Krogshøjvej 36 2880 Bagsværd Opinion Basis for Opinion 2024-06-07 33771231 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab