The Annual Report was adopted at the Annual General Meeting of the Company on 25 February Chairman:

Transcription

1 214 ANNUAL REPORT FOR 214 The Annual Report was adopted at the Annual General eeting of the Company on 25 February 215. Chairman: Bjerregårds Sidevej 4 25 Valby Denmark Phone CVR No:

2 Notes 16. Related parties Shareholders holding at least 5% of the share capital or at least 5% of the votes: Name Address/Place of registered office Atlantic Software ApS Bjerregårds Sidevej 4, DK-25 Valby EEA ApS Bjerregårds Sidevej 4, DK-25 Valby 17. Adjustments, cash flow statement ,371 11, Financial expenses 7,19 5,768 Tax on profit for the year 6,73 1,383 38,449 19,8 Change in receivables -1,313 7,819 Change in trade payables etc 33,594-1,726 1,66 3,8 33, , ,159 38,213-18,144 Depreciation, amortisation and impairment losses Financial income 18. Changes in working capital, cash flow statement Other changes in working capital 19. Cash at bank and in hand, cash flow statement Cash at bank and in hand according to the balance sheet Short-term bank loans 42 ANNUAL REPORT FOR 214 EDLUND

3 CONTENTS anagement s Review Basic Values: People and technology combined with strong values and traditions 4 Strategic Foundation: Supreme solutions and constant development 6 The Year at a Glance: Strong positions maintained development turned into further growth 16 Business Development: New clients, growth and development 18 Expectations: Continued significant growth 2 Board of Directors and Executive Board 21 Financial Highlights 22 anagement s Statement on the Annual Report Independent Auditor s Report Financial Statements Income Statement 26 Balance Sheet 27 Statement of Changes in Equity 29 Cash Flow Statement 3 Notes Accounting Policies 31 Revenue 32 Staff expenses 32 Financial income and expenses 33 Tax on profit for the year 33 Intangible assets 34 Property, plant and equipment 34 Investments 34 Contract work in progress 35 Prepayments 35 Share capital 4 Long-term debt 41 Security 41 Contingent liabilities and other financial obligations 41 Related parties 42 Adjustments, cash flow statement 42 Changes in working capital, cash flow statement 42 Cast at bank and in hand, cash flow statement 42 ANNUAL REPORT FOR 214 EDLUND 3

4 Our Basic Values PEOPLE AND TECHNOLOGY COBINED WITH STRONG VALUES AND TRADITIONS STRONG TECHNOLOGICAL FOUNDATION All of Edlund s solutions are developed by Edlund and are based on the latest icrosoft software technologies. A majority of our 213 employees are dedicated directly to product research and development.ore than 8% of all of our employees have a master s or PhD degree ore than 8% of all of our employees have a master s or PhD degree. The strong traditions and values of Edlund create a solid foundation for the Company s employees who are both highly educated and extensively experienced within the insurance industry. CORPORATE ISSION Edlund A/S develops, produces and sells industry-specific and business critical systems for the pensions and insurance industry. Edlund moreover implements and maintains solutions with our clients and provides consulting services to them as well. UNIQUE POSITION The unique aspect of Edlund s business is our many years of experience of the pensions and insurance industry combined with our employees extensive academic competences within actuarial science, financial mathematics and IT science. Other 1% PARTNERSHIP WITH OUR CLIENTS When Edlund develops and implements solutions, it is based on close interaction with our clients and their IT departments. Edlund has long-standing working relationships with our clients where we are in charge of day-to-day maintenance and development of the solution. This is either done by a team of Edlund employees or as a partnership between Edlund employees and the client s employees. 4 ANNUAL REPORT FOR 214 EDLUND 3% Actuary Actuary student PhD 8% 16% 2% The Danish Insurance Academy An attractive market 3% Edlund operates in a growing market and holds a strong market leading position in Denmark within administrative systems for the pensions and insurance industry. aster s degree BUSINESS CRITICAL PRODUCTS Edlund s products and consulting services are business critical to our clients, and it is important to Edlund to have a very close relationship with the clients. Our Company is known for its supreme quality products and high reliability established through our more than 2-year market presence providing proven, state-of-the-art solutions. Bachelor 58% ission and vision ission aking insurance possible Vision Preferred choice in a changing world VALUES Edlund s business is based on two completely fundamental values: Quality and Reliability. QUALITY It is important to Edlund to deliver quality to our clients both in our products and our consulting services based on Edlund s comprehensive experience of the pensions and insurance industry. RELIABILITY Edlund wants to be a reliable partner. Reliability is the platform which always forms the basis of Edlund s dialogues with our clients both in respect of technology, business matters and insurance science. ANNUAL REPORT FOR 214 EDLUND 5

5 Our Basic Values PEOPLE AND TECHNOLOGY COBINED WITH STRONG VALUES AND TRADITIONS STRONG TECHNOLOGICAL FOUNDATION All of Edlund s solutions are developed by Edlund and are based on the latest icrosoft software technologies. A majority of our 213 employees are dedicated directly to product research and development.ore than 8% of all of our employees have a master s or PhD degree ore than 8% of all of our employees have a master s or PhD degree. The strong traditions and values of Edlund create a solid foundation for the Company s employees who are both highly educated and extensively experienced within the insurance industry. CORPORATE ISSION Edlund A/S develops, produces and sells industry-specific and business critical systems for the pensions and insurance industry. Edlund moreover implements and maintains solutions with our clients and provides consulting services to them as well. UNIQUE POSITION The unique aspect of Edlund s business is our many years of experience of the pensions and insurance industry combined with our employees extensive academic competences within actuarial science, financial mathematics and IT science. Other 1% PARTNERSHIP WITH OUR CLIENTS When Edlund develops and implements solutions, it is based on close interaction with our clients and their IT departments. Edlund has long-standing working relationships with our clients where we are in charge of day-to-day maintenance and development of the solution. This is either done by a team of Edlund employees or as a partnership between Edlund employees and the client s employees. 4 ANNUAL REPORT FOR 214 EDLUND 3% Actuary Actuary student PhD 8% 16% 2% The Danish Insurance Academy An attractive market 3% Edlund operates in a growing market and holds a strong market leading position in Denmark within administrative systems for the pensions and insurance industry. aster s degree BUSINESS CRITICAL PRODUCTS Edlund s products and consulting services are business critical to our clients, and it is important to Edlund to have a very close relationship with the clients. Our Company is known for its supreme quality products and high reliability established through our more than 2-year market presence providing proven, state-of-the-art solutions. Bachelor 58% ission and vision ission aking insurance possible Vision Preferred choice in a changing world VALUES Edlund s business is based on two completely fundamental values: Quality and Reliability. QUALITY It is important to Edlund to deliver quality to our clients both in our products and our consulting services based on Edlund s comprehensive experience of the pensions and insurance industry. RELIABILITY Edlund wants to be a reliable partner. Reliability is the platform which always forms the basis of Edlund s dialogues with our clients both in respect of technology, business matters and insurance science. ANNUAL REPORT FOR 214 EDLUND 5

6 The Edlund Strategic Foundation SUPREE SOLUTIONS AND CONSTANT DEVELOPENT Developments in the life and pensions sector mean that Edlund s clients never stop asking for new solutions. By meeting these demands, Edlund continues to strengthen our position as the market leader. A CHANGING ARKET Edlund s systems form the very core and basis for a majority of Danish life and pensions providers, and our ambition is to remain the preferred choice of the insurance industry for development and delivery of administrative systems. Throughout the years, Edlund s clients have adapted to changes in society. ore and more clients move from offering guaranteed savings products to offering market products, just as general insurance products are now more often part of an overall pensions solution. In response to this development, Edlund has now combined our core offers in one main standard solution, namely LIFELINK. As a supplement to the standard solution, our clients may choose among additional products that precisely match the requirements of their particular business for example to manage unit link deposits, casualty policies as well as payments and disbursements. By this, Edlund responds to the demand of the life and pensions providers for manageable and standardised solutions that are easy to implement, require a minimum of customisation and are inexpensive to maintain. 6 ANNUAL REPORT FOR 214 EDLUND arket share of approx 6%* Within solutions to the life and pensions sector in Denmark Edlund holds a very strong position with a market share of more than 6%. * Stated on the basis of premium income. SETTING THE INDUSTRY STANDARD Actually, the 2+ years of intense, focused IT support of life and pensions companies mean that, today, Edlund has set the industry standard in the field. This is another guarantee that Edlund s standard product LIFELINK can be incorporated directly into the clients own solutions, which again implies great savings for the clients in respect of the development and maintenance of the products. Based on the many years of work dedicated to administrative procedures optimisation in the insurance industry, Edlund s products enable the clients to simplify their procedures. Our goal is for all employees to be able to help both their colleagues and customers swiftly and efficiently and, as a main rule, it must be possible to close 8% of the cases in one go. CONTINUED DEVELOPENT By constantly putting our efforts into research and development, Edlund wants to further develop existing business segments and continue to add new products that may help life and pensions providers provide the best and most innovative services to their customers. ANNUAL REPORT FOR 214 EDLUND 7

7 The Edlund Strategic Foundation SUPREE SOLUTIONS AND CONSTANT DEVELOPENT Developments in the life and pensions sector mean that Edlund s clients never stop asking for new solutions. By meeting these demands, Edlund continues to strengthen our position as the market leader. A CHANGING ARKET Edlund s systems form the very core and basis for a majority of Danish life and pensions providers, and our ambition is to remain the preferred choice of the insurance industry for development and delivery of administrative systems. Throughout the years, Edlund s clients have adapted to changes in society. ore and more clients move from offering guaranteed savings products to offering market products, just as general insurance products are now more often part of an overall pensions solution. In response to this development, Edlund has now combined our core offers in one main standard solution, namely LIFELINK. As a supplement to the standard solution, our clients may choose among additional products that precisely match the requirements of their particular business for example to manage unit link deposits, casualty policies as well as payments and disbursements. By this, Edlund responds to the demand of the life and pensions providers for manageable and standardised solutions that are easy to implement, require a minimum of customisation and are inexpensive to maintain. 6 ANNUAL REPORT FOR 214 EDLUND arket share of approx 6%* Within solutions to the life and pensions sector in Denmark Edlund holds a very strong position with a market share of more than 6%. * Stated on the basis of premium income. SETTING THE INDUSTRY STANDARD Actually, the 2+ years of intense, focused IT support of life and pensions companies mean that, today, Edlund has set the industry standard in the field. This is another guarantee that Edlund s standard product LIFELINK can be incorporated directly into the clients own solutions, which again implies great savings for the clients in respect of the development and maintenance of the products. Based on the many years of work dedicated to administrative procedures optimisation in the insurance industry, Edlund s products enable the clients to simplify their procedures. Our goal is for all employees to be able to help both their colleagues and customers swiftly and efficiently and, as a main rule, it must be possible to close 8% of the cases in one go. CONTINUED DEVELOPENT By constantly putting our efforts into research and development, Edlund wants to further develop existing business segments and continue to add new products that may help life and pensions providers provide the best and most innovative services to their customers. ANNUAL REPORT FOR 214 EDLUND 7

8 The Edlund Strategic Foundation BUSINESS SEGENTS PRODUCTS ACTULUS ACTULUS calculates provisions and solvency of life and pensions providers among other things in consequence of the EU Solvency II Directive. Edlund s clients are life and pensions providers, and our business activities are organised to match their demands. Standard Solution for Life and Pension DIS BU od RS ule E ENT u od le T LIFELINK E N Risk & S olve nc y K ITLIN UN agement an es riti cu Se ACTUL US ualty Insurance Cas PAY is Edlund s standard product for the administration of casualty insurance policies. UNITLINK UNITLINK is a core product in Edlund used for the administration of unit link deposits of policies attached to funds. DISBURSEENT DISBURSEENT is Edlund s standard product for the administration of all types of disbursements made by life and pensions providers including disbursements of benefits. PAYENT PAYENT is Edlund s standard product for the administration of all types of payments received from the life and pensions providers customers be it a personal customer or an employer. JOINT PLATFOR ENSURES A STRONG SOLUTION All products and solutions are developed by Edlund based on the latest icrosoft software technologies such as C#, F#,.NET, Windows Server Systems and icrosoft SQL Server. STANDARD SOLUTION LIFELINK LIFELINK is the complete and proven standard administrative policy solution for life and pensions providers. LIFELINK manages the major part of the providers value chain from the first contact with a customer through the execution of an agreement and the management of a policy to monitoring of disbursements made. As LIFELINK is a standard solution, it is easy to integrate Edlund s other distinctive insurance products into LIFELINK in line with the providers evolving needs to offer new products to their customers. 8 ANNUAL REPORT FOR 214 EDLUND On this basis, Edlund has created a technologically strong platform that forms the basis of the LIFELINK solution and which can be expanded to suit the needs of all types of life and pensions providers. Products for the calculation of risk and solvency (ACTULUS), casualty insurance (), securities management (UNITLINK), etc can be added to LIFELINK later. As up to 85% of the shared platform is standard, it gives the clients great savings both when purchasing the solutions and during the current development and maintenance. Similarly, when choosing LIFELINK as their standard solution for policy administration, the clients get a proven solution. ANNUAL REPORT FOR 214 EDLUND 9

9 The Edlund Strategic Foundation BUSINESS SEGENTS PRODUCTS ACTULUS ACTULUS calculates provisions and solvency of life and pensions providers among other things in consequence of the EU Solvency II Directive. Edlund s clients are life and pensions providers, and our business activities are organised to match their demands. Standard Solution for Life and Pension DIS BU od RS ule E ENT u od le T LIFELINK E N Risk & S olve nc y K ITLIN UN agement an es riti cu Se ACTUL US ualty Insurance Cas PAY is Edlund s standard product for the administration of casualty insurance policies. UNITLINK UNITLINK is a core product in Edlund used for the administration of unit link deposits of policies attached to funds. DISBURSEENT DISBURSEENT is Edlund s standard product for the administration of all types of disbursements made by life and pensions providers including disbursements of benefits. PAYENT PAYENT is Edlund s standard product for the administration of all types of payments received from the life and pensions providers customers be it a personal customer or an employer. JOINT PLATFOR ENSURES A STRONG SOLUTION All products and solutions are developed by Edlund based on the latest icrosoft software technologies such as C#, F#,.NET, Windows Server Systems and icrosoft SQL Server. STANDARD SOLUTION LIFELINK LIFELINK is the complete and proven standard administrative policy solution for life and pensions providers. LIFELINK manages the major part of the providers value chain from the first contact with a customer through the execution of an agreement and the management of a policy to monitoring of disbursements made. As LIFELINK is a standard solution, it is easy to integrate Edlund s other distinctive insurance products into LIFELINK in line with the providers evolving needs to offer new products to their customers. 8 ANNUAL REPORT FOR 214 EDLUND On this basis, Edlund has created a technologically strong platform that forms the basis of the LIFELINK solution and which can be expanded to suit the needs of all types of life and pensions providers. Products for the calculation of risk and solvency (ACTULUS), casualty insurance (), securities management (UNITLINK), etc can be added to LIFELINK later. As up to 85% of the shared platform is standard, it gives the clients great savings both when purchasing the solutions and during the current development and maintenance. Similarly, when choosing LIFELINK as their standard solution for policy administration, the clients get a proven solution. ANNUAL REPORT FOR 214 EDLUND 9

10 The Edlund Strategic Foundation EDLUND S STANDARD SOLUTION ENT le E PAY ACTUL US Risk & S olve nc y Standard Solution for Life and Pension od RS ule E o ENT du le PAY ACTULUS is a cloud-based SaaS solution and is Edlund s platform for calculation of market values and cash flows. ACTULUS supports calculation on the G82 basis as well as customised products in models comprising status for surrenders and paid-up policies. ACTULUS is a completely central upgradable tool for calculation of provisions in the stress scenarios used for the solvency requirements statement. The EU Solvency II Directive, which is expected to become effective as from 1 January 216, makes the ACTULUS solution particularly relevant. T du LIFELINK E N E o T ule BU od DIS BU RS N ACTUL US Risk & S olve nc y Standard Solution for Life and Pension K ITLIN UN LIFELINK ualty Insurance Cas agement an es riti cu Se K ITLIN UN DIS LIFELINK supports all the required policy administration aspects of a life and pensions insurance provider. With LIFELINK the provider is ready to meet future requirements as the system is 1% managed.net code and the standard module is upgraded twice a year. The upgrades include eg changes in statutory requirements or new features which are seamlessly integrated into the standard solution in response to the needs and requirements of the industry. ACTULUS Reliable calculations of provisions and solvency ualty Insurance Cas agement an es riti cu Se LIFELINK is Scandinavia s leading standard solution for policy administration in the life and pensions industry. The proven and documented system is based on more than 2 years of experience of solution configuration for the industry. LIFELINK supports the average yield, market and unit link products in one and the same solution. LIFELINK The standard solution of the future for Life and Pensions One of the strengths of ACTULUS is that it calculates the portfolio rightdown to policy level. UNIQUE COOPERATION Standard Solution for Life and Pension od RS ule E o ENT du le stands for Insurance Policy Administration System and is a new ground-breaking product for the administration of casualty insurance policies. One of the strengths of is its wide range of private and commercial insurance products, which makes it easy to implement as existing products are merely customised with the company-specific elements of the products. The only remaining part requiring customisation is its integration into finance, documents and conversion. The rest is standard. T LIFELINK E N ACTUL US K ITLIN UN 1 ANNUAL REPORT FOR 214 EDLUND agement an es riti cu Se LIFELINK has been developed with focus on quality and reliability in calculations and roll-forward of balances, high performance and a user-friendly interface. aintenance and upgrading of the standard system are cost effective as costs are shared with the rest of the market. BU LOW COSTS ualty Insurance Cas DIS The standard modules typically make up 8-85% of the final solution. The remaining client-specific part is created in close cooperation with the client in separate modules that are integrated seamlessly under modern architectural principles to ensure a cost effective and reliable solution that considerably reduces the costs of a policy. Simple administration of casualty policies Risk & S olve nc y LIFELINK has been developed based on Edlund s close cooperation with life and pensions providers and experience gained from the shared processes existing in the life and pensions industry. LIFELINK consists of a series of standard modules that administer agreements, policies with related processes, payments and disbursements, workflow and integration with public authorities. LIFELINK can be fully integrated into the client s other system landscape via system integration and web services. PAY LOW COSTS As customisation is limited and all clients share the same core software, the providers overall costs incurred from the product will be low in comparison with other solutions on the market. Because of the unique standard concept, a casualty insurance provider will be able to quickly introduce new insurance products to its customers at low system costs. ANNUAL REPORT FOR 214 EDLUND 11

11 The Edlund Strategic Foundation EDLUND S STANDARD SOLUTION ENT le E PAY ACTUL US Risk & S olve nc y Standard Solution for Life and Pension od RS ule E o ENT du le PAY ACTULUS is a cloud-based SaaS solution and is Edlund s platform for calculation of market values and cash flows. ACTULUS supports calculation on the G82 basis as well as customised products in models comprising status for surrenders and paid-up policies. ACTULUS is a completely central upgradable tool for calculation of provisions in the stress scenarios used for the solvency requirements statement. The EU Solvency II Directive, which is expected to become effective as from 1 January 216, makes the ACTULUS solution particularly relevant. T du LIFELINK E N E o T ule BU od DIS BU RS N ACTUL US Risk & S olve nc y Standard Solution for Life and Pension K ITLIN UN LIFELINK ualty Insurance Cas agement an es riti cu Se K ITLIN UN DIS LIFELINK supports all the required policy administration aspects of a life and pensions insurance provider. With LIFELINK the provider is ready to meet future requirements as the system is 1% managed.net code and the standard module is upgraded twice a year. The upgrades include eg changes in statutory requirements or new features which are seamlessly integrated into the standard solution in response to the needs and requirements of the industry. ACTULUS Reliable calculations of provisions and solvency ualty Insurance Cas agement an es riti cu Se LIFELINK is Scandinavia s leading standard solution for policy administration in the life and pensions industry. The proven and documented system is based on more than 2 years of experience of solution configuration for the industry. LIFELINK supports the average yield, market and unit link products in one and the same solution. LIFELINK The standard solution of the future for Life and Pensions One of the strengths of ACTULUS is that it calculates the portfolio rightdown to policy level. UNIQUE COOPERATION Standard Solution for Life and Pension od RS ule E o ENT du le stands for Insurance Policy Administration System and is a new ground-breaking product for the administration of casualty insurance policies. One of the strengths of is its wide range of private and commercial insurance products, which makes it easy to implement as existing products are merely customised with the company-specific elements of the products. The only remaining part requiring customisation is its integration into finance, documents and conversion. The rest is standard. T LIFELINK E N ACTUL US K ITLIN UN 1 ANNUAL REPORT FOR 214 EDLUND agement an es riti cu Se LIFELINK has been developed with focus on quality and reliability in calculations and roll-forward of balances, high performance and a user-friendly interface. aintenance and upgrading of the standard system are cost effective as costs are shared with the rest of the market. BU LOW COSTS ualty Insurance Cas DIS The standard modules typically make up 8-85% of the final solution. The remaining client-specific part is created in close cooperation with the client in separate modules that are integrated seamlessly under modern architectural principles to ensure a cost effective and reliable solution that considerably reduces the costs of a policy. Simple administration of casualty policies Risk & S olve nc y LIFELINK has been developed based on Edlund s close cooperation with life and pensions providers and experience gained from the shared processes existing in the life and pensions industry. LIFELINK consists of a series of standard modules that administer agreements, policies with related processes, payments and disbursements, workflow and integration with public authorities. LIFELINK can be fully integrated into the client s other system landscape via system integration and web services. PAY LOW COSTS As customisation is limited and all clients share the same core software, the providers overall costs incurred from the product will be low in comparison with other solutions on the market. Because of the unique standard concept, a casualty insurance provider will be able to quickly introduce new insurance products to its customers at low system costs. ANNUAL REPORT FOR 214 EDLUND 11

12 The Edlund Strategic Foundation BU od CHOOSE BETWEEN INVESTENT CONCEPTS ule E o ENT du le PAYENT Standard product for the administration of all types of payments received by life and pensions providers from their customers T Standard Solution for Life and Pension E N ACTUL US Risk & S olve nc y K ITLIN UN LIFELINK RS PAY UnitLink allows the customer to choose between different investment strategies: A free-choice concept where it is possible to move the deposit between the funds and to create an investment profile for the allocation of future savings. It is also possible to choose a life cycle-based concept under which the client controls investments based on its customer s profile basing the allocation on the customer s investment horizon. E E ENT du le T o E N ACTUL US Risk & S olve nc y ule PAY du le T o ENT od Where payments are outstanding, PAYENT handles the automated dunning procedure. PAYENT can also process irregular and incorrect payments with commercially appropriate interim positions for the amounts. E N ACTUL US Risk & S olve nc y ule K ITLIN UN od BU Standard Solution for Life and Pension PAYENTS PROCESSING K ITLIN UN BU 12 ANNUAL REPORT FOR 214 EDLUND LIFELINK RS Standard Solution for Life and Pension As life and pensions providers offer an increasing number of services to their customers, it becomes still more necessary to control the inflow. Therefore, PAYENT includes an automatic allocation engine ensuring that amounts are recorded in the different inflow elements of a customer s account thus accurately covering the relevant due balances. ualty Insurance Cas DIS The DISBURSEENT module offers great flexibility and can be integrated into the client s other payment systems. It is up to the client whether DISBURSEENT should perform only parts of the process or whether the module should handle disbursements throughout the whole process. LIFELINK RS PAYENT is Edlund s standard product for the administration of all types of payments received by life and pensions providers from their customers be they personal customers or employers. agement an es riti cu Se The DISBURSEENT module is characterised by its feature handling disbursements simultaneously to a very large number of pensioners through several different payment channels such as NemKonto and Nets. The module moreover includes completed integrations for statutory filings with the Danish tax authorities. DIS As life and pensions providers administer an increasing number of disbursements and in line with increasing statutory requirements of accuracy and control of disbursements made, the DISBURSEENT module by Edlund is to an increasing extent needed by life and pensions providers. DISBURSEENT Standard product for the administration of all types of disbursements made by life and pensions providers PAYENT ualty Insurance Cas agement an es riti cu Se DISBURSEENT One of the strengths of DISBURSEENT is reliability. If unexpected changes or crashes occur, doubts may arise as to details in the calculation basis, or if updated information between customer and provider was not received in time, DISBURSEENT will ensure that a preliminary disbursement is made corresponding to the previous one. This way, our client solidifies their relation to its customers and experiences smoother processing of disbursement corrections. ualty Insurance Cas DIS UnitLink allows the client to define the funds open to customers investments; it is possible to add or close funds on a current basis and to update transaction prices as often as required including interrupting all trading immediately if the market suddenly turns unstable. INTEGRATED RELIABILITY agement an es riti cu Se UnitLink is a core product by Edlund used for the administration of unit link deposits of policies attached to funds. UnitLink includes a policy administration element that keeps track of the customers deposits and investments and a trade cycle element that keeps track of when trading is favourable and at what prices. UNITLINK Flexible deposit administration designed to meet the future PAY ANNUAL REPORT FOR 214 EDLUND 13

13 The Edlund Strategic Foundation BU od CHOOSE BETWEEN INVESTENT CONCEPTS ule E o ENT du le PAYENT Standard product for the administration of all types of payments received by life and pensions providers from their customers T Standard Solution for Life and Pension E N ACTUL US Risk & S olve nc y K ITLIN UN LIFELINK RS PAY UnitLink allows the customer to choose between different investment strategies: A free-choice concept where it is possible to move the deposit between the funds and to create an investment profile for the allocation of future savings. It is also possible to choose a life cycle-based concept under which the client controls investments based on its customer s profile basing the allocation on the customer s investment horizon. E E ENT du le T o E N ACTUL US Risk & S olve nc y ule PAY du le T o ENT od Where payments are outstanding, PAYENT handles the automated dunning procedure. PAYENT can also process irregular and incorrect payments with commercially appropriate interim positions for the amounts. E N ACTUL US Risk & S olve nc y ule K ITLIN UN od BU Standard Solution for Life and Pension PAYENTS PROCESSING K ITLIN UN BU 12 ANNUAL REPORT FOR 214 EDLUND LIFELINK RS Standard Solution for Life and Pension As life and pensions providers offer an increasing number of services to their customers, it becomes still more necessary to control the inflow. Therefore, PAYENT includes an automatic allocation engine ensuring that amounts are recorded in the different inflow elements of a customer s account thus accurately covering the relevant due balances. ualty Insurance Cas DIS The DISBURSEENT module offers great flexibility and can be integrated into the client s other payment systems. It is up to the client whether DISBURSEENT should perform only parts of the process or whether the module should handle disbursements throughout the whole process. LIFELINK RS PAYENT is Edlund s standard product for the administration of all types of payments received by life and pensions providers from their customers be they personal customers or employers. agement an es riti cu Se The DISBURSEENT module is characterised by its feature handling disbursements simultaneously to a very large number of pensioners through several different payment channels such as NemKonto and Nets. The module moreover includes completed integrations for statutory filings with the Danish tax authorities. DIS As life and pensions providers administer an increasing number of disbursements and in line with increasing statutory requirements of accuracy and control of disbursements made, the DISBURSEENT module by Edlund is to an increasing extent needed by life and pensions providers. DISBURSEENT Standard product for the administration of all types of disbursements made by life and pensions providers PAYENT ualty Insurance Cas agement an es riti cu Se DISBURSEENT One of the strengths of DISBURSEENT is reliability. If unexpected changes or crashes occur, doubts may arise as to details in the calculation basis, or if updated information between customer and provider was not received in time, DISBURSEENT will ensure that a preliminary disbursement is made corresponding to the previous one. This way, our client solidifies their relation to its customers and experiences smoother processing of disbursement corrections. ualty Insurance Cas DIS UnitLink allows the client to define the funds open to customers investments; it is possible to add or close funds on a current basis and to update transaction prices as often as required including interrupting all trading immediately if the market suddenly turns unstable. INTEGRATED RELIABILITY agement an es riti cu Se UnitLink is a core product by Edlund used for the administration of unit link deposits of policies attached to funds. UnitLink includes a policy administration element that keeps track of the customers deposits and investments and a trade cycle element that keeps track of when trading is favourable and at what prices. UNITLINK Flexible deposit administration designed to meet the future PAY ANNUAL REPORT FOR 214 EDLUND 13

14 The Edlund Strategic Foundation A STRONG STRATEGY LEADS TO CLIENT SATISFACTION Edlund enjoyed an early success with our strategic action plan meeting our success criterion of increased client and revenue growth. This success was achieved especially through the win of a new large client with which Edlund concluded an agreement in 214 and in respect of which the implementation of LIFELINK as the new standard product is in process. LIFELINK and the additional products will still enjoy our focus in relation to coming sales to new clients. Our business has been further optimised through the addition of new resources that will strengthen and streamline internal management. Edlund has moreover maintained a very high satisfaction level among existing clients, which can be concluded from the comprehensive client satisfaction survey performed in 214. HIGH DEGREE OF CLIENT SATISFACTION Edlund performed its first comprehensive client satisfaction survey in 214. With a response rate of as high as 88%, our survey gave a clear picture of how Edlund s products and services are perceived. Our clients are in general very satisfied with the functionality and quality of Edlund s products. An important precondition for this is the great trust placed in Edlund s employees who are perceived as having a high level of technical knowledge. Clients also find that our employees are very committed with good listening skills and an ability to understand the problems faced by the clients. This means that in general Edlund s core business is well functioning and meets our declared values of quality and reliability. It moreover confirms Edlund in the view that we are on the right track when it comes to the strategic development of our business. The client survey also brought about many good suggestions for solutions for which clients want Edlund s help. Our clients also expressed wishes relating to our cooperation that would optimise results for both the clients and Edlund. Edlund will consider the many inputs and intends to perform more client satisfaction surveys as part of our continuous dialogue with our clients. 14 ANNUAL REPORT FOR 214 EDLUND ANNUAL REPORT FOR 214 EDLUND 15

15 The Edlund Strategic Foundation A STRONG STRATEGY LEADS TO CLIENT SATISFACTION Edlund enjoyed an early success with our strategic action plan meeting our success criterion of increased client and revenue growth. This success was achieved especially through the win of a new large client with which Edlund concluded an agreement in 214 and in respect of which the implementation of LIFELINK as the new standard product is in process. LIFELINK and the additional products will still enjoy our focus in relation to coming sales to new clients. Our business has been further optimised through the addition of new resources that will strengthen and streamline internal management. Edlund has moreover maintained a very high satisfaction level among existing clients, which can be concluded from the comprehensive client satisfaction survey performed in 214. HIGH DEGREE OF CLIENT SATISFACTION Edlund performed its first comprehensive client satisfaction survey in 214. With a response rate of as high as 88%, our survey gave a clear picture of how Edlund s products and services are perceived. Our clients are in general very satisfied with the functionality and quality of Edlund s products. An important precondition for this is the great trust placed in Edlund s employees who are perceived as having a high level of technical knowledge. Clients also find that our employees are very committed with good listening skills and an ability to understand the problems faced by the clients. This means that in general Edlund s core business is well functioning and meets our declared values of quality and reliability. It moreover confirms Edlund in the view that we are on the right track when it comes to the strategic development of our business. The client survey also brought about many good suggestions for solutions for which clients want Edlund s help. Our clients also expressed wishes relating to our cooperation that would optimise results for both the clients and Edlund. Edlund will consider the many inputs and intends to perform more client satisfaction surveys as part of our continuous dialogue with our clients. 14 ANNUAL REPORT FOR 214 EDLUND ANNUAL REPORT FOR 214 EDLUND 15

16 anagement s Review The Year at a Glance STRONG POSITIONS AINTAINED DEVELOPENT TURNED INTO FURTHER GROWTH THE FINANCIAL DEVELOPENT Revenue reached DKK 271 million compared to DKK 26 million in 213 which is a 32% improvement Earnings before interest, taxation, depreciation and amortisation (EBITDA) reached DKK 56 million compared to DKK 2 million in 213. The improvement of earnings is primarily based on the considerable revenue growth Profit before tax amounted to DKK 24 million compared to DKK 3 million in 213 Profit after tax amounted to DKK 18 million compared to DKK 1 million in 213 Equity at 31 December 214 amounts to DKK 148 million compared to DKK 13 million at 31 December 213. OUR BUSINESS LIFELINK still administers as much as 6% of all pension premiums of Danish life and pensions providers ACTULUS was put into operation with two of our clients UNITLINK is being implemented with a new client A new and improved version of DISBURSEENTS is being implemented with a new client. RESEARCH AND DEVELOPENT LIFELINK is being further developed including new features ACTULUS is still being developed in cooperation with the University of Copenhagen and the IT University. In Q1 215 a new feature will be introduced and additional features are on the drawing board and will be introduced later in 215. Contrary to 213, all development costs incurred by Edlund have this year been taken directly to the income statement. In the 214 Financial Statements development costs have been capitalised at DKK 64 million in respect of LIFELINK. The capitalised development costs are in anagement s opinion reasonable considering the earnings potential of the development. 16 ANNUAL REPORT FOR 214 EDLUND Expected significant revenue growth Significant and growing sales are expected within Life and Pensions including new sales of the proven standard solutions to existing clients. THE COPANY Thomas Jøhnk was appointed CEO on 27 January 215 and replaced Line Find who has been CEO since 211. Thomas Jøhnk will continue as an ordinary member of the Company s Board of Directors A comprehensive client satisfaction survey generally showed a high client satisfaction level in respect of the functionality and quality of Edlund s products In connection with Edlund s acquisition of the property Faxehus in Valby from Carlsberg in 213, Edlund has paid the planned additional DKK 1 million to Carlsberg as a consequence of the adoption of the local development plan. Through this, we have gained building rights for a 4,5 m2 headquarter with the possibility of establishing 1 underground parking spaces and further expansion of Edlund s campus-like offices. SUBSEQUENT EVENTS o events that may materially affect the Company s financial N position have occurred after the balance sheet date. EXPECTATIONS FOR 215 A significant revenue growth is still expected for 215 compared to 214 although at a lower growth rate than the one realised in 214. The Company expects significantly increased profit after tax Sales efforts relating to our products and services will still be strengthened In accordance with Edlund s strategy, the Company will continue to allocate heavy resources to product development and, through this, make the Company ready for the future. ANNUAL REPORT FOR 214 EDLUND 17

17 anagement s Review The Year at a Glance STRONG POSITIONS AINTAINED DEVELOPENT TURNED INTO FURTHER GROWTH THE FINANCIAL DEVELOPENT Revenue reached DKK 271 million compared to DKK 26 million in 213 which is a 32% improvement Earnings before interest, taxation, depreciation and amortisation (EBITDA) reached DKK 56 million compared to DKK 2 million in 213. The improvement of earnings is primarily based on the considerable revenue growth Profit before tax amounted to DKK 24 million compared to DKK 3 million in 213 Profit after tax amounted to DKK 18 million compared to DKK 1 million in 213 Equity at 31 December 214 amounts to DKK 148 million compared to DKK 13 million at 31 December 213. OUR BUSINESS LIFELINK still administers as much as 6% of all pension premiums of Danish life and pensions providers ACTULUS was put into operation with two of our clients UNITLINK is being implemented with a new client A new and improved version of DISBURSEENTS is being implemented with a new client. RESEARCH AND DEVELOPENT LIFELINK is being further developed including new features ACTULUS is still being developed in cooperation with the University of Copenhagen and the IT University. In Q1 215 a new feature will be introduced and additional features are on the drawing board and will be introduced later in 215. Contrary to 213, all development costs incurred by Edlund have this year been taken directly to the income statement. In the 214 Financial Statements development costs have been capitalised at DKK 64 million in respect of LIFELINK. The capitalised development costs are in anagement s opinion reasonable considering the earnings potential of the development. 16 ANNUAL REPORT FOR 214 EDLUND Expected significant revenue growth Significant and growing sales are expected within Life and Pensions including new sales of the proven standard solutions to existing clients. THE COPANY Thomas Jøhnk was appointed CEO on 27 January 215 and replaced Line Find who has been CEO since 211. Thomas Jøhnk will continue as an ordinary member of the Company s Board of Directors A comprehensive client satisfaction survey generally showed a high client satisfaction level in respect of the functionality and quality of Edlund s products In connection with Edlund s acquisition of the property Faxehus in Valby from Carlsberg in 213, Edlund has paid the planned additional DKK 1 million to Carlsberg as a consequence of the adoption of the local development plan. Through this, we have gained building rights for a 4,5 m2 headquarter with the possibility of establishing 1 underground parking spaces and further expansion of Edlund s campus-like offices. SUBSEQUENT EVENTS o events that may materially affect the Company s financial N position have occurred after the balance sheet date. EXPECTATIONS FOR 215 A significant revenue growth is still expected for 215 compared to 214 although at a lower growth rate than the one realised in 214. The Company expects significantly increased profit after tax Sales efforts relating to our products and services will still be strengthened In accordance with Edlund s strategy, the Company will continue to allocate heavy resources to product development and, through this, make the Company ready for the future. ANNUAL REPORT FOR 214 EDLUND 17

18 Business Development 214 PRODUCED NEW CLIENTS, GROWTH AND DEVELOPENT SALES With a 32% revenue growth and a net profit for the year of DKK 18 million after tax, Edlund is strongly positioned for the future growth in Life and Pensions. The public sector in particular is interesting in this respect as it experiences increasing needs for standard solutions chiefly in respect of social benefits administration. Our sales efforts also focused on Edlund s future opportunities on the international market for solutions to life and pensions providers. Our sales activity increased considerably during the year with good results. The increased sales efforts will especially be forming the basis of Edlund s future growth, and Edlund has started cultivating further markets for our products. HIGH DEVELOPENT COSTS AFFECT PERFORANCE 214 was a successful year for Edlund A/S and our position on the market has been further strengthened. Edlund realised an impressive revenue growth rate of 32% in 214. This growth was realised both by way of new clients and by additional sales to existing clients. Especially Edlund s standard solution LIFELINK, which is the very core of many life and pensions providers, continues to form the basis of our very stable business and represented the majority of our revenue. In 214 Edlund continued to focus on securing our strong market position and future earnings through the development of new and existing products. In respect of the main product LIFELINK development costs of DKK 64 million have been capitalised in the Financial Statements at 31 December 214. Regarding the previously capitalised development costs of DKK 1 million have now been expensed. Development costs affect the profit for the year which reached DKK 18 million after tax compared to DKK 1 million last year. Company anagement considers this profit satisfactory. Revenue is earned from both sales of the solution including the related expansions and upgrades and from sales of consulting services to our clients. PROFIT SHARING FOR EPLOYEES Also the standard product for general insurance policy management,, and the standard product ACTULUS for calculation of provisions and solvency contributed to the revenue. ACTULUS especially won a position on the market and was put into operation with two of our clients. DEVELOPENT OF DOICILE The still more widely used market products among life and pensions providers turned into success for Edlund s unique standard product UnitLink. UnitLink is used for unit link deposit management of policies attached to funds and was implemented with a new client in ANNUAL REPORT FOR 214 EDLUND Since 23 Edlund has offered its employees a profit sharing plan. In arch 215 a profit share of DKK 8.6 million was paid to the company s employees. In 213, Edlund acquired the distinctive property Faxehus in Valby from Carlsberg. In relation to this, Edlund has paid the planned additional DKK 1 million to Carlsberg in 214 as a consequence of the adoption of the local development plan. Through this, we have acquired building rights for a 4,5 m2 headquarter with the possibility of establishing 1 underground parking spaces. This will allow Edlund to expand our campus-like offices further in the attractive historical district between the Carlsberg area, the Søndermarken part and the railway line. ANNUAL REPORT FOR 214 EDLUND 19

19 Business Development 214 PRODUCED NEW CLIENTS, GROWTH AND DEVELOPENT SALES With a 32% revenue growth and a net profit for the year of DKK 18 million after tax, Edlund is strongly positioned for the future growth in Life and Pensions. The public sector in particular is interesting in this respect as it experiences increasing needs for standard solutions chiefly in respect of social benefits administration. Our sales efforts also focused on Edlund s future opportunities on the international market for solutions to life and pensions providers. Our sales activity increased considerably during the year with good results. The increased sales efforts will especially be forming the basis of Edlund s future growth, and Edlund has started cultivating further markets for our products. HIGH DEVELOPENT COSTS AFFECT PERFORANCE 214 was a successful year for Edlund A/S and our position on the market has been further strengthened. Edlund realised an impressive revenue growth rate of 32% in 214. This growth was realised both by way of new clients and by additional sales to existing clients. Especially Edlund s standard solution LIFELINK, which is the very core of many life and pensions providers, continues to form the basis of our very stable business and represented the majority of our revenue. In 214 Edlund continued to focus on securing our strong market position and future earnings through the development of new and existing products. In respect of the main product LIFELINK development costs of DKK 64 million have been capitalised in the Financial Statements at 31 December 214. Regarding the previously capitalised development costs of DKK 1 million have now been expensed. Development costs affect the profit for the year which reached DKK 18 million after tax compared to DKK 1 million last year. Company anagement considers this profit satisfactory. Revenue is earned from both sales of the solution including the related expansions and upgrades and from sales of consulting services to our clients. PROFIT SHARING FOR EPLOYEES Also the standard product for general insurance policy management,, and the standard product ACTULUS for calculation of provisions and solvency contributed to the revenue. ACTULUS especially won a position on the market and was put into operation with two of our clients. DEVELOPENT OF DOICILE The still more widely used market products among life and pensions providers turned into success for Edlund s unique standard product UnitLink. UnitLink is used for unit link deposit management of policies attached to funds and was implemented with a new client in ANNUAL REPORT FOR 214 EDLUND Since 23 Edlund has offered its employees a profit sharing plan. In arch 215 a profit share of DKK 8.6 million was paid to the company s employees. In 213, Edlund acquired the distinctive property Faxehus in Valby from Carlsberg. In relation to this, Edlund has paid the planned additional DKK 1 million to Carlsberg in 214 as a consequence of the adoption of the local development plan. Through this, we have acquired building rights for a 4,5 m2 headquarter with the possibility of establishing 1 underground parking spaces. This will allow Edlund to expand our campus-like offices further in the attractive historical district between the Carlsberg area, the Søndermarken part and the railway line. ANNUAL REPORT FOR 214 EDLUND 19

20 Expectations for 215 anagement CONTINUED SIGNIFICANT GROWTH BOARD OF DIRECTORS Edlund offers unique products and solutions to the market also in 215. Edlund s products are still well positioned for the purpose of assisting insurance providers in three decisive areas: development of new insurance and pensions products, cost savings and adaptation to regulatory requirements. Based on the Company s loyal client base, a significant revenue growth is still expected although at a lower growth rate than the one realised in 214. Growth will be attributable to especially additional sales of our unique and efficient standard solutions. Continued development A significant revenue growth is still expected for 215 compared to 214 although at a lower growth Tage Reinert (1957) Erling Edlund Andersen (1944) Thomas Jøhnk (1968) Directorship Chairman of the Board of Directors of Scandinavian Brake Systems A/S, DanPilot, Connection Holding A/S, Peiter Olsen A/S, TP Udlejning A/S. CEO of Fyrrebakken 29 ApS Directorship Chairman of the Board of Directors of Edlund Ejendomme A/S. CEO of Høvænge Skovene A/S and EEA ApS Directorships ember of the Board of Directors of Edlund Ejendomme A/S. CEO of Atlantic Software ApS Anders Voss Bülow (1973) Katrine Agergaard (1983) Chairman, Sc and state authorised public account Elected in 213 Deputy Chairman, Sc (Insurance Science). Founder of the Company and member of the Board of Directors since 1992 Sc (Computer Science) Co-founder of the Company and member of the Board of Directors since 1992 rate than the one realised in 214. The Company expects significantly increased profit after tax. STABILE FOUNDATION Within Life and Pensions, Edlund s LIFELINK product has already obtained a state-of-the-art status in the industry. The standard mindset within IT solutions is becoming still more popular, and Edlund expects stable and growing sales of LIFE-LINK. New products will be developed as a natural addition to LIFELINK in line with the wish for increased flexibility expressed by the life and pensions providers customers. At the same time our clients demand new products that will support their customer service through improved key data screens, speedy access to information, etc as well as solutions that support the general process optimisation taking place with our clients. Sc Engineering and software engineer Elected by the employees in 212, employed in 1999 Sc Engineering and project manager Elected by the employees in 212, employed in 29 EXECUTIVE BOARD INTENSIFIED SALES EFFORTS Edlund will intensify our sales efforts also in 215 towards both new and existing clients. New sales will be focused on the public sector through offers of standardised solutions within social benefits administration. Sales efforts will also focus on Edlund s future opportunities on the international market for solutions for life and pensions providers. 2 ANNUAL REPORT FOR 214 EDLUND Thomas Jøhnk (1968) Sc (Computer Science) Co-founder of the Company and member of the Board of Directors since 1992 Directorships ember of the Board of Directors of Edlund Ejendomme A/S. CEO of Atlantic Software ApS ANNUAL REPORT FOR 214 EDLUND 21

21 Expectations for 215 anagement CONTINUED SIGNIFICANT GROWTH BOARD OF DIRECTORS Edlund offers unique products and solutions to the market also in 215. Edlund s products are still well positioned for the purpose of assisting insurance providers in three decisive areas: development of new insurance and pensions products, cost savings and adaptation to regulatory requirements. Based on the Company s loyal client base, a significant revenue growth is still expected although at a lower growth rate than the one realised in 214. Growth will be attributable to especially additional sales of our unique and efficient standard solutions. Continued development A significant revenue growth is still expected for 215 compared to 214 although at a lower growth Tage Reinert (1957) Erling Edlund Andersen (1944) Thomas Jøhnk (1968) Directorship Chairman of the Board of Directors of Scandinavian Brake Systems A/S, DanPilot, Connection Holding A/S, Peiter Olsen A/S, TP Udlejning A/S. CEO of Fyrrebakken 29 ApS Directorship Chairman of the Board of Directors of Edlund Ejendomme A/S. CEO of Høvænge Skovene A/S and EEA ApS Directorships ember of the Board of Directors of Edlund Ejendomme A/S. CEO of Atlantic Software ApS Anders Voss Bülow (1973) Katrine Agergaard (1983) Chairman, Sc and state authorised public account Elected in 213 Deputy Chairman, Sc (Insurance Science). Founder of the Company and member of the Board of Directors since 1992 Sc (Computer Science) Co-founder of the Company and member of the Board of Directors since 1992 rate than the one realised in 214. The Company expects significantly increased profit after tax. STABILE FOUNDATION Within Life and Pensions, Edlund s LIFELINK product has already obtained a state-of-the-art status in the industry. The standard mindset within IT solutions is becoming still more popular, and Edlund expects stable and growing sales of LIFE-LINK. New products will be developed as a natural addition to LIFELINK in line with the wish for increased flexibility expressed by the life and pensions providers customers. At the same time our clients demand new products that will support their customer service through improved key data screens, speedy access to information, etc as well as solutions that support the general process optimisation taking place with our clients. Sc Engineering and software engineer Elected by the employees in 212, employed in 1999 Sc Engineering and project manager Elected by the employees in 212, employed in 29 EXECUTIVE BOARD INTENSIFIED SALES EFFORTS Edlund will intensify our sales efforts also in 215 towards both new and existing clients. New sales will be focused on the public sector through offers of standardised solutions within social benefits administration. Sales efforts will also focus on Edlund s future opportunities on the international market for solutions for life and pensions providers. 2 ANNUAL REPORT FOR 214 EDLUND Thomas Jøhnk (1968) Sc (Computer Science) Co-founder of the Company and member of the Board of Directors since 1992 Directorships ember of the Board of Directors of Edlund Ejendomme A/S. CEO of Atlantic Software ApS ANNUAL REPORT FOR 214 EDLUND 21

22 anagement s Statement on the Annual Report FINANCIAL HIGHLIGHTS The development of the Group for the past five years is described by the following financial highlights: The Board of Directors and the Executive Board have today considered and adopted the Annual Report of Edlund A/S for the financial year 1 January - 31 December Revenue 271,13 25, ,499 18, ,421 Gross profit 231, , , , ,625 Operating profit 3,734 8,27 37, ,313 61,36 Net financials -7,5-5,762-4,436-5,74-3,988 Net profit for the year 17,656 1,125 22, ,233 4, , ,81 38,532 27, ,238 13,349 58,453 24,588 7,348 39, , , ,243 18, , Valby, 5 February 215 Gross margin Profit margin Executive Board: Solvency ratio Return on equity Key figures (DKK ) Balance sheet total Investment in property, plant and equipment Equity Average number of employees The Annual Report was prepared in accordance with the Danish Financial Statements Act. In our opinion, the Consolidated Financial Statements and the Financial Statements give a true and fair view of assets, liabilities and the financial position of the Group and the at 31 December 214 and of the results of the Group and operations and of consolidated cash flows for the financial year 1 January 31 December 214. In our opinion, anagement s Review includes a true and fair account of the matters addressed in the Review. We recommend that the Annual Report be adopted at the Annual General eeting. Ratios Return on assets Thomas Bøge Edlund Jøhnk Board of Directors: Tage Reinert Chairman Thomas Bøge Edlund Jøhnk Erling Edlund Andersen Deputy Chairman Anders Voss Bülow Katrine Agergaard 22 ANNUAL REPORT FOR 214 EDLUND ANNUAL REPORT FOR 214 EDLUND 23

23 anagement s Statement on the Annual Report FINANCIAL HIGHLIGHTS The development of the Group for the past five years is described by the following financial highlights: The Board of Directors and the Executive Board have today considered and adopted the Annual Report of Edlund A/S for the financial year 1 January - 31 December Revenue 271,13 25, ,499 18, ,421 Gross profit 231, , , , ,625 Operating profit 3,734 8,27 37, ,313 61,36 Net financials -7,5-5,762-4,436-5,74-3,988 Net profit for the year 17,656 1,125 22, ,233 4, , ,81 38,532 27, ,238 13,349 58,453 24,588 7,348 39, , , ,243 18, , Valby, 5 February 215 Gross margin Profit margin Executive Board: Solvency ratio Return on equity Key figures (DKK ) Balance sheet total Investment in property, plant and equipment Equity Average number of employees The Annual Report was prepared in accordance with the Danish Financial Statements Act. In our opinion, the Consolidated Financial Statements and the Financial Statements give a true and fair view of assets, liabilities and the financial position of the Group and the at 31 December 214 and of the results of the Group and operations and of consolidated cash flows for the financial year 1 January 31 December 214. In our opinion, anagement s Review includes a true and fair account of the matters addressed in the Review. We recommend that the Annual Report be adopted at the Annual General eeting. Ratios Return on assets Thomas Bøge Edlund Jøhnk Board of Directors: Tage Reinert Chairman Thomas Bøge Edlund Jøhnk Erling Edlund Andersen Deputy Chairman Anders Voss Bülow Katrine Agergaard 22 ANNUAL REPORT FOR 214 EDLUND ANNUAL REPORT FOR 214 EDLUND 23