ANNUAL REPORT 2010 SOLUTIONS FOR LIFE

Transcription

1 ANNUAL REPORT 2010 SOLUTIONS FOR LIFE

2 Ramboll is a leading engineering, design and consultancy company founded in Denmark in Today, we employ close to 9,000 experts and we constantly strive to achieve inspiring and exacting solutions that make a genuine difference to our customers, the end-users and society as a whole. Cover: Illustration used as graphic identity for the Ramboll Urbanisation Event 2010 symbolising cities. Ramboll Group A/S Danish CVR No City of Copenhagen, Denmark Date of Annual General Meeting: 22 March 2011

3 ANNUAL REPORT Interview with Group CEO 4 Results Profile 8 Key statistics 9 Directors Report 10 Activities Innovating solutions for modern living 18 Nurturing community partnerships 28 Promoting inspirational and longstanding design 36 Financial Status Accounting policies 43 Financial statements 50 Notes 54 Management s statement on the Annual Report 66 Independent Auditor s Report 67 Board of Directors 68 Executive Board 69 Group Directors Forum 70

4 4 INTRODUCTION INTERVIEW WITH GROUP CEO BECOMING A PARTNER TO THE GLOBAL COMMUNITY 2010 marks another year full of inspirational projects and interesting cooperation possibilities. Also, the ever growing and increasingly international market position of our company has been strengthened. With a strong vision of where we are heading, ambitions are high for the future. CEO Flemming Bligaard Pedersen can look back on a year with significant accomplishments for Ramboll. We have strengthened our customer relations and partnerships, and throughout the organisation, our 9,000 engineers and consultants have worked on several large and innovative projects. Pioneering solutions for groundbreaking challenges To highlight a few projects, Ramboll was chosen as the engineering consultant for the new iconic National Museum of Art, Architecture and Design in Oslo, Norway. We were appointed lead design consultant on the redevelopment of Pulkovo Airport in St. Petersburg, Russia one of the most ambitious aviation projects currently underway in Europe. In the Telecom area, Ramboll signed a new five-year framework agreement to continue cooperation with Chinese giant, Huawei thereby expanding the scope for cooperation in markets in Sub-Saharan Africa. Furthermore, our innovative engineering design for an immersed tunnel under Fehmarnbelt became the selected solution, Flemming Bligaard Pedersen says. These are all spectacular and important projects that strengthen our ability to attract and retain the best people to work at Ramboll. These large projects also boost innovation, as many of them represent challenges that have not previously been seen. By working on such projects, our employees set new industry standards for future projects, and this benefits our customers, our industry, and society at large. Pursuing ambitions When asked about this year s financial result, Flemming Bligaard Pedersen s reply is prompt. Everything considered, our year-end result is satisfactory. As always, the result is reflective of both external and internal influences. The market has proven to be more volatile than anticipated, and internally, we continue to strive to strengthen our business, he says. Still, the result shows that we are on the right track. As with many other companies, the financial crisis caused Ramboll to closely examine its strategy and daily operation. During difficult times, it becomes clear which adjustments need to be made in the organisation. Flemming Bligaard Pedersen says about the lessons learned during the downturn: We have experienced many great results from our efforts in 2010, but we are also convinced that more can be done. All change is a process and time is needed to allow change to take effect within the organisation. As a business leader, I see it as my most important job to do exactly this to initiate change. To lead a business is very different As a business leader, I see it as my most important job to do exactly this to initiate change. To lead a business is very different from managing a business. Leadership is basically about motivating people, and you can t force anyone to be motivated they have to trust the direction in which you are heading.

5 ANNUAL REPORT from managing a business. Leadership is basically about motivating people, and you can t force anyone to be motivated they have to trust the direction in which you are heading. So agreement on the direction must remain clear, and therefore we have a strong focus on the full implementation of our strategy. There is always this grey zone around a strategy and its scope. An important lesson is to be really focused and stick very closely to the strategy. If too many initiatives are not fully aligned with the strategy, the energy is lost and efforts become scattered. When difficult times hit, you ll be directly confronted with this. It s important to back up your ambitions with actions directly supporting the overall objective. This does not mean that there is no room for creativity, but we have to ensure that everything we do supports the overall direction we want to take it s about transforming creativity into innovation, Flemming Bligaard Pedersen explains. projects is also very much about teamwork. We should be able to undertake any challenge or project either by bringing together experts from within Ramboll or drawing on collaboration partners, and together solve the issues in relation to the community they are part of. Paving the way for smooth operations During 2010, focus was on further enhancing Ramboll s platform for providing state-of-the-art solutions for all the projects we are involved in. The solutions that we are able to provide to our customers stem from the creativity, insight and integrity of the people within our organisation. To ensure continuous employee development, a global Ramboll Academy was launched in The biggest challenges the world is currently facing such as climate change, lack of natural resources, pollution, ageing population, urban migration and mega cities are all global challenges that can t be solved locally. This is why Ramboll has to be able to provide global solutions, drawing on global expertise and experience across disciplines and geographies to solve these challenges. Holistic community consultant The ambition of becoming a partner for the global community remains our most important goal. The key is to have a holistic view on the world and the solutions required. The biggest challenges the world is currently facing such as climate change, lack of natural resources, pollution, ageing population, urban migration and mega cities are all global challenges that can t be solved locally. This is why Ramboll has to be able to provide global solutions, drawing on global expertise and experience across disciplines and geographies to solve these challenges, Flemming Bligaard Pedersen says. However, being a community consultant who claims to hold some of the solutions to the world s challenges also means seeking to influence the social debate and to share our solutions. We do so by opening our doors for the surrounding community whenever we can, and through participation in debates, events and meetings in the markets where we operate. On a more operational level, Ramboll s core competence is to develop and manage projects, and this is an area that can never get too much focus, according to Bligaard Pedersen: We always need to have the skills required to provide solutions for small or large projects, but working on

6 6 INTRODUCTION INTERVIEW WITH GROUP CEO It s a natural consequence of our vision and strategy that our head office which is also our single largest work space is a visionary, innovative and inspiring building. The Academy programme takes a strategic approach to leadership, competency and business development. It not only professionalises the skills of our employees, but it develops the attitude needed to take Ramboll forward, says Flemming Bligaard Pedersen. The ability to quickly identify the most qualified employees or project lessons across Ramboll is crucial for delivering the best possible solutions to our customers. This is why a common Knowledge Management platform, RamLink, was introduced in the majority of Ramboll s business units in The remaining units will be joining in early Additionally, the development of a common ERP (Enterprise Resource Planning) system to manage time and resources more efficiently is on its way. New surroundings as a showcase for engineering In 2010, we moved in to a new Head Office in Copenhagen. It s a natural consequence of our vision and strategy that our head office which is also our single largest work space is a visionary, innovative and inspiring building. It is located right in the middle of the largest intersection in the Nordic region, and we can see various engineering and consultancy disciplines just by looking out of the window, Bligaard Pedersen says. A strong vision for transparency, cooperation and knowledge sharing has been the inspiration for the design of the new Head Office. Approximately 13,000 square metres of glass make up the façade covering the building, and its transparency signals openness and integration to the surrounding world just like all of us working inside the building never lose sight of the community we are part of. The new Head Office also represents a showcase of our capabilities. Several Ramboll experts have been deeply involved with creating a sustainable office building exemplifying that it s possible to create architecturally interesting buildings while not compromising the overall sustainability and economy. Additionally, in several locations around the world we have upgraded our existing offices and in Sweden and Norway, we have recently moved into new main offices. Future aspirations Ramboll has now managed to comply with the new market agenda in a reasonable way, Flemming Bligaard Pedersen concludes. During 2011, the company is expected to reach the level of profit from before the economic downturn. This is an ambitious target, Flemming Bligaard says. But we have come quite a long way already, and during 2011, we ll pursue the further professionalisation of our business. We ll optimise and improve within all areas; our functions, systems, projects and crossorganisational cooperation. Ramboll also wants to come closer to fulfilling the strategic ambition of becoming a global community consultant. We plan to expand geographically, as well as expand our holistic expertise. If we want to be able to set the global agenda, we have to reach a certain size in order to have true impact. We ll focus on growth in markets where we already have a strong presence, but we are also keeping a close eye on new, interesting growth markets, says Bligaard Pedersen. The executive team and the strategy are ready to go, and with a solid foundation ownership structure, Ramboll is in a good position to expand further while maintaining a strong company spirit.

7 RESULTS PROMOTING OUR HOLISTIC APPROACH

8 8 RESULTS PROFILE PROFILE Ramboll is a leading engineering, design and consultancy company founded in Denmark in We employ close to 9,000 people and have a significant presence in Northern Europe, Russia, India and the Middle East. With almost 200 offices in 20 countries we emphasise local experience combined with a global knowledgebase. We constantly strive to achieve inspiring and exacting solutions that make a genuine difference to our customers, the end-users and society as a whole. Ramboll operates within the areas of: Buildings & Design, Infrastructure & Transport, Energy & Climate, Environment & Nature, Industry & Oil/Gas, IT & Telecom and Management & Society. Ownership The Ramboll Foundation is the main owner of Ramboll Group A/S and has as its main objective to promote the company s continuance alongside the longterm development of the company, its employees and the communities it serves. All shares in Ramboll Group A/S are owned either by the Ramboll Foundation (96%) or by employees in Ramboll (4%). Vision Ramboll is committed to helping create inspirational and longstanding solutions that allow people and nature to flourish. PROFIT BEFORE TAX, DKK MILLION Profit before tax (left axis) Rolling annual profit before tax (right axis) Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q4

9 ANNUAL REPORT KEY STATISTICS Key figures and financial ratios (audited) Income statement, DKK million EUR m Revenue , , , , ,945.5 EBITA Operating profit (EBIT) Profit before tax Profit for the year Balance sheet, DKK million Total assets , , , , ,102.0 Shareholders equity , , Net interest bearing cash/(debt) Cash flow, DKK million Cash flow from operating activities Investment in tangible assets, net Free cash flow Acquisitions of companies Employees Number of employees, end of year 8,970 8,758 8,848 6,964 5,346 Number of full time employee equivalents 8,229 8,141 7,758 6,385 4,947 Financial ratios in % Revenue growth Organic growth EBITA margin Operating margin (EBIT margin) Return on invested capital (ROIC) Return on equity (ROE) Cash conversion ratio Equity ratio Non-financial indicators (unaudited) Average age of employees Average age of management Proportion of management who is female, % Public sector revenue, % Private sector revenue, % The figures in EUR have been translated from DKK using an exchange rate of 7.45.

10 10 RESULTS DIRECTORS REPORT (AUDITED) DIRECTORS REPORT In 2010 Ramboll managed to increase the profit before tax by 30% compared to the previous year despite the current challenging market situation. Several factors have influenced our improved financial performance: We have had the ability to successively adapt our operation to the current market changes, we have benefitted from the diversification of our business across service areas and regions and we have succeeded in winning and completing new ground breaking projects. All due to the dedicated effort of our employees. In Ramboll we have also in 2010 managed to consolidate our position as a strong company with solid profit and cash generation and a healthy balance sheet. RAMBOLL GROUP GROUP MANAGEMENT SUPPORT FUNCTIONS BUILDINGS & DESIGN INFRASTRUCTURE & TRANSPORT ENVIRONMENT & NATURE ENERGY & CLIMATE Energy INDUSTRY & OIL/GAS Oil & Gas IT & TELECOM Informatics Telecom Denmark (DK, GL) Norway (NO) Sweden (SE) Finland (FI) United Kingdom (UK, IE) Middle East (UAE, QA) Russia (RU) India (IN) Poland (PL) Estonia (EE) Lithuania (LT) Romania (RO) Germany (DE) South East Asia (TH, ID) SUPPORT FUNCTIONS MANAGEMENT & SOCIETY Management Consulting

11 ANNUAL REPORT PREPARING FOR FURTHER GROWTH The global economic crisis has now entered into a new phase, i.e. a debt crisis, causing the public sector to significantly reduce spending. This has a negative impact on our business climate as the slowdown in the public sector activity leads to fierce price competition. On the other hand, we are experiencing an increase in activities in the private sector. Despite the fierce competition in 2010, we managed to win many new contracts, which have led to an increase in the order book to DKK 2.8 billion compared to DKK 2.4 billion at the end of Towards the end of the year we experienced new positive signs within Buildings & Design. This is the very opposite development compared to the situation one year ago. Throughout our operations, focus has remained on strengthening our customer relations to secure the continuous influx of small and large orders, the mobility of our workforce and efficiency of operations and cooperation across our units. In order to stay competitive, we have constantly been focusing on cost saving measures. One of our initiatives to increase efficiency has been to off-shore services to low cost units within Ramboll, whenever possible. At the same time we have increased resources spent on customer relations and service delivery, as our future activity depends on giving maximum priority to these areas. As we have been successful in winning several important projects in 2010, this strategy seems to have paid off. In Russia, Ramboll has been appointed lead design consultant on the complete redevelopment of Pulkovo Airport, St. Petersburg. In Norway, Ramboll is to design the new National Museum of Art, Architecture and Design in Oslo. In Denmark, Ramboll was engineering consultant on three winning proposals for the development of a new science city at the University of Copenhagen. The newly established Energy Global Practice enjoyed a head start and won several new projects in the UK, Denmark, Finland, Sweden and the US. Finally, the Ramboll-Arup- TEC design for an 18 kilometre combined road and railway tunnel construction has been announced by the Danish Minister of Transport as the preferred solution for a Fehmarnbelt link between Denmark and Germany. The political decision in favour of the immersed tunnel solution is a professional milestone for Ramboll. A significant number of our employees have already been involved in the project and this will continue for years to come. The team has presented a world class solution which sets new international standards for immersed tunnel design. During 2010 we made thirteen bolton acquisitions in the Nordic region. Seven acquisitions were in Norway, five in Finland and one in our Oil & Gas business unit in Denmark. Through these acquisitions we have increased our knowledge base and expertise by adding 165 highly skilled employees to our workforce. On 1 April 2010, Knut Akselvoll took over as Executive Director, and the Group Executive Board is now fully in place. In 2010, we embarked on the development of our strategy for the next five years. It was a thorough process that involved the Board of Directors, the Group Executive Board, as well as all Principal Business Units. The result is a concise and ambitious future strategy for profitable growth. Customer satisfaction We wish to maintain a high quality level in everything we do and to continuously improve our performance. To strengthen our customer relations and build strong local partnerships, we continuously measure customer satisfaction. We ask our customers different questions such as how they perceive Ramboll s ability to cooperate and deliver on time. How well we understand their needs and how we manage to go beyond expectations. And, very importantly, how they perceive the competencies of our consultants. We scored highest on our ability to cooperate. Result: 4.5 (on a scale from 1 to 5), and we received the lowest score on our ability to go beyond expectations. Result: 3.7 (on a scale from 1 to 5). Our overall customer satisfaction was 4.2 in 2010 (on a scale from 1 to 5). As 2010 is the first year with a common cross-organisational customer satisfaction survey system, results cannot be compared with those of previous years. Financial development Revenue increased by 10% from DKK 5,511 million in 2009 to DKK 6,075 million. The increase of the reporting currency DKK against foreign currencies (SEK and NOK in particular), affected the revenue with 5%. At constant exchange rates revenue increased by 5%. Organic growth was 3%, primarily attributable to positive organic growth in Scandinavia and Russia, and only partly offset by negative organic growth in the UK and Middle East. Growth from acquisitions was 2% due to bolt-on acquisitions made in 2009 and Operating profit before goodwill amortisation (EBITA) for the year was DKK 394 million compared to DKK 320 million in 2009,

12 12 RESULTS DIRECTORS REPORT (AUDITED) giving an EBITA margin of 6.5% compared to 5.8% in The increase in margin compared to 2009 was primarily due to the fact that the low performing units of 2009, such as the UK and Management Consulting, made significant improvements in The EBITA margin was kept on a satisfactory level in Sweden and Denmark and in our international business units within Energy, Oil & Gas and Management Consulting. On the other hand, the margin declined in Finland and Norway, in our international Telecom business unit and in our Danish business unit within IT services. Goodwill amortisation increased to DKK 97 million (2009: DKK 83 million) due to increase of the reporting currency DKK against GBP, SEK and NOK and amortisation of newly acquired companies. Net financial expenses were DKK 21 million compared to net financial expenses of DKK 24 million in The net financial expenses are primarily related to interest rate hedging. Profit before tax increased by 30% to DKK 276 million compared to DKK 213 million in Tax on profit increased to DKK 99 million (2009: DKK 88 million). The effective tax rate was 27% (2009: 30%) calculated as Tax on profit divided by Profit before tax adjusted for Goodwill amortisation and Income from associates. Net profit was DKK 175 million compared to DKK 125 million in The result was satisfactory taking into consideration the difficult market situation. The split of revenue between the private and public sectors has moved in the direction of decreased revenue from the public sector in line with the market situation. Public sector revenue represented 41% of total revenue in 2010 (2009: 45%) with private sector revenue representing 59%. Buildings & Design is still our largest market segment accounting for 35% of total revenue, followed by Infrastructure & Transport accounting for 25%. The most significant growth in 2010 has been within Energy & Climate (19%), Infrastructure & Transport (18%) and Buildings & Design (13%). The Nordic region accounts for more than 85% of the total revenue, with Denmark as the largest single geographical segment accounting for 39% of the total revenue. Cash management was given high priority in 2010 and this resulted in a healthy cash conversion of 95% (2009: 108%). Cash flow from operating activities was DKK 332 million. Investments in tangible assets amounted to DKK 176 million due to significant investments made in connection with moving into new premises in Ørestad (Copenhagen), Oslo and Stockholm. Consequently, free cash flow was DKK 156 million compared to DKK 187 million in Investments in acquisitions of companies reached DKK 81 million compared to DKK 32 million in At year-end, Ramboll had a strong financial position with a net interest bearing cash position of DKK 187 million (2009: DKK 108 million), a committed funding REVENUE IN SERVICE AREAS 2010 REVENUE IN GEOGRAPHICAL AREAS 2010 Buildings & Design 34.6% (2009: 33.6%) Infrastructure & Transport 25.3% (2009: 23.7%) Energy & Climate 6.1% (2009: 5.6%) Environment & Nature 9.4% (2009: 11.3%) Industry & Oil/Gas 10.1% (2009: 10.6%) It & Telecom 7.7% (2009: 8.2%) Management & Society 6.8% (2009: 7.0%) Denmark 39.1% (2009: 41.7%) Norway 18.7% (2009: 16.3%) Sweden 17.3% (2009: 16.3%) Finland 10.4% (2009: 11.3%) UK 4.8% (2009: 5.4%) Middle East 3.5% (2009: 3.8%) Russia 2.6% (2009: 1.2%) Rest of Europe 1.7% (2009: 2.3%) Rest of World 1.9% (2009: 1.7%)

13 ANNUAL REPORT In line with Ramboll s fundamentals, we joined the UN Global Compact in January We report Ramboll s CSR activities separately under the UN Global Compact in a Communication on Progress report. and facility of DKK 1 billion running until September 2012 and a DKK 100 million overdraft facility. The equity ratio was 36% (2009: 35%). Shareholders equity increased by DKK 250 million to DKK 1,321 million. The movements in equity comprise net profit of DKK 175 million, exchange rate and value adjustments, net of tax of DKK 101 million and dividends of DKK -26 million. BOOSTING GLOBAL COOPERATION Ramboll provides a wide range of services throughout the world within our Service Areas. We have an underlying holistic business model governing our business. It is based on five central values: Insight, Integrity, Empathy, Enjoyment and Empowerment. We believe that our value chain goes through thriving and loyal employees and customers, through responsibility and care for society and the surrounding environment to profitable and sustainable development for our company. In this way our holistic business model serves as a guideline for everything we do and forms the basis for our Code of Conduct and our business practices in general. Ramboll Group A/S is the parent company of the operation with a 100% shareholding in all the main subsidiaries. Company structure As consultants we need to be present locally in order to understand the needs, standards, culture and language of our customers. At the same time we must be able to draw on our global specialist knowledge from across the organisation, especially in relation to large and complex projects. To reflect this way of operating, Ramboll has been organised in a matrix of Country Business Units, Global Practices, Service Areas and Support Functions. Knowledge sharing and business development In 2010 we continued the implementation of our Group Knowledge Management Strategy. A key initiative was the introduction of a new Knowledge Management Platform called RamLink. The RamLink version 1 has been designed as a common platform allowing our employees to access and share important knowledge about people and projects in Ramboll. Another focus area was to establish and develop our Group Networks. We now have a series of strong crossorganisational networks which provide structure and support to our internal cooperation. Knowledge Event 2010 To position ourselves as a serious international player, we must be able to deliver specific solutions to the global challenges the world is facing. To enhance our organisation s ability to meet these challenges, a virtual Knowledge Event focussing on the theme of urbanisation was held in For the event we collected and exhibited diverse examples of Ramboll s urban solutions. These are now being further developed to become an integrated part of our service portfolio. As part of this project, we also hosted a physical Urbanisation Event for around 130 customers and collaboration partners. At this occasion, keynote speakers and master class sessions highlighted how cities are being innovative in their response to global development challenges such as climate change, energy efficiency and economic development. SHAPING THE FUTURE Our employees are our core asset. We employ inspired, innovative, passionate and professional people who together form the backbone of our business. At year-end 2010 the headcount was 8,970 which is an increase of 212 compared to year-end 2009 (8,758). Encouraging professional and personal growth In Ramboll we have a long tradition for developing and training our employees locally, our strategic ambition for international growth calls for a more coordinated, international and aligned approach to running development activities especially within the fields of leadership development, project management and on-boarding of new employees.

14 14 RESULTS DIRECTORS REPORT (AUDITED) EMPLOYEE SURVEY Response rate, % (left axis) Employee satisfaction and engagement index (right axis) A record-high number of employees completed the employee survey in The overall result for Ramboll shows a satisfaction and engagement index of 3.9 on a 5 point scale To add a global dimension the Ramboll Academy has therefore been given high priority in 2010, comprising two large programmes on leadership and international project management. For the first time both programmes have gathered participants from all Principal Business Units which has significantly contributed to the integration and one company spirit. The Ramboll Academy training concept is based on a high degree of participant involvement and a chance to work with real life challenges and to get peer feedback. In this way we strengthen the ties between our future leaders and project managers. Engaged employees Each year we carry out an Employee Satisfaction and Engagement Survey (ESES) in which all employees in Ramboll are invited to participate. The survey serves two closely interrelated purposes: Firstly, to increase the satisfaction and engagement of employees and, secondly, to strengthen the business through continuous improvement of employee engagement, working processes and management practices. A record-high number of employees completed the ESES questionnaire in Not only was it an all time high response rate (83%), it was also the second consecutive year that the response rate increased, from 78% in 2008 and 81% in The overall result for Ramboll shows a satisfaction and engagement index of 3.9 on a 5 point scale, which is a satisfactory result in the light of the unfavourable business environment faced by many parts of the company in During the last five years, the overall result has ranged between 3.7 and 4.0. New principal offices in the Nordics In August 2010 Ramboll moved into a new head office in Ørestad in Copenhagen. It comprises 40,000 square metres of office space and is the new working place for 1,600 Ramboll engineers and consultants. The vision for the building is to provide a holistic and sustainable environment with openness, knowledge sharing and cooperation as the focal points. Advanced engineering has ensured that the new Ramboll Head Office is geared for future demands regarding energy consumption and indoor climate. Groundwater cooling and rain water collection are two examples of this. During 2010, Ramboll also occupied a new principal office in Oslo, just as a new principal office in Stockholm was taken into use in 2009 and plans are to move into another new principal office in This time in Espoo in Finland. Creating value In Ramboll, our economic value creation is shared between our employees (distributed by way of annual bonuses) and our shareholders (distributed by

15 ANNUAL REPORT way of either a dividend or as a reinvestment for the company s further development). Our economic profit of DKK 316 million (2009: DKK 236 million) was distributed as DKK 108 million (2009: DKK 105 million) in bonus to our employees and the remaining DKK 208 million to the shareholders (2009: DKK 131 million), of which DKK 26 million (2009: DKK 26 million) was distributed to the shareholders in the form of dividends. In May 2010, Ramboll completed the 2010 share scheme. All employees with a minimum of two years seniority were invited to buy Ramboll shares. A total of 424 Ramboll shares were bought by our employees. At the end of 2010, the employees owned 4% of the share capital while the remaining 96% was owned by the Ramboll Foundation. ACTING RESPONSIBLY In Ramboll we believe in a business behaviour based on trust, integrity and professionalism. We believe in taking a holistic and responsible approach to everything we are involved in, and we believe in a voluntary initiative to promote sustainable development and good corporate citizenship. Based on the strong fundamentals inherited from our founders and our commitment to providing sustainable solutions to people and society, we have as an international provider of knowledge services acknowledged and accepted Corporate Responsibility for many years. Corporate Social Responsibility (CSR) The purpose of CSR is to ensure that social, ethical, and environmental concerns are an integrated element of our overall responsible business behaviour. We believe that our focus on CSR is of benefit to our employees, our stakeholders and the society we are part of as well as to our business results. In 2010 specific CSR actions were taken in relation to People, Climate and Business Integrity. As a first step to increase internal awareness of the risk ECONOMIC VALUE CREATION, DKK MILLION Net profit, DKK million Profit before tax Employees annual bonuses Financial expenses Net profit Invested capital (1 January), DKK million Total equity 1, Long term liabilities Provisions for deferred tax Provisions for pensions 6 51 Dividend Invested capital 1,419 1, Net profit Required return on invested capital Economic profit (EP) Economic profit (EP), DKK million Required return on invested capital 10% 10% Required return on invested capital Economic profit (Net profit - return on capital) Part of EP used for employees' annual bonuses Part of EP to shareholders and for company development

16 16 RESULTS DIRECTORS REPORT (AUDITED) of discrimination and how to fight discrimination, our HR employees were trained in nondiscrimination. In % of the HR employees participated in the training, while our target is that over time all HR employees should undertake the training. Secondly, we have measured our annual CO2 emission caused by heating, cooling and electricity. In 2010 the CO2 emission per employee (FTEE) increased by 5% from 0.96 ton in 2009 to 1.01 ton in The aim will be to reduce the CO2 emission per employee in In 2010 we also introduced measurement of CO2 emission related to business transport and travel. However, due to high uncertainty related to the data, we are unable to publish the Group results of the CO2 emission caused by business transport and travel in We will, however, focus on improving the data quality in Finally, a Business Integrity E-learning training course has been developed. The purpose is to increase awareness of our Code of Conduct, how it influences our daily work and what we should do to maintain our high ethical standards for business behaviour. The target is that all employees must complete the E-learning course in In 2010 Ramboll in several ways interacted with the local communities of our business units, for instance through cooperation with institutions of higher education in order to inspire students and to foster the development of innovate longstanding solutions and technologies. According to the exception under the Danish Financial Statements Act 99A, we report Ramboll s CSR activities under the United Nations Global Compact in a Communication on Progress Report. For further information regarding this report, please check the UN website participant/7863-ramboll-group and /CSRreport2010. Subsequent events With the exception of events described in this Annual Report, Ramboll is not aware of events subsequent to 31 December 2010 that are expected to have a material impact on Ramboll s financial position. Executive Board Ramboll s Group Executive Board consists of a Group CEO and three other Group Executives, each responsible for one of the three dimensions in our operating model: Service Areas/Global Practices, Country Business Units and Support Functions. Board of Directors Ramboll s Group Board of Directors is composed of professionals with a broad mix of experience. At the Annual General Meeting in March 2010 Øyvind Isaksen joined the Board of Directors, replacing Jon Jacobsen. See page 68 for a presentation of the Board members. Dividend The Group Board of Directors proposes a dividend of DKK 26,250 thousand, equivalent to the dividend distributed last year. A dividend of DKK 26,250 thousand corresponds to 75% of the nominal share value, 15% of net profit and 17% of free cash flow for the year. LOOKING TO THE FUTURE The overall market situation for Ramboll in 2011 is expected to be as challenging as in We do, however, see ourselves as being prepared for the tough market conditions and find Ramboll in a good position to deal with the challenges. Consequently, operating profit is expected to improve from With world class expertise networks and projects, we have a strong platform for pursuing our strategy for growth. Our present portfolio of unique and significant projects is a clear indication of the fact that during recent years, we have been able to position ourselves as a significant international consultancy company which can be measured on a global scale.

17 ACTIVITIES UNLOCKING THE URBAN ENVIRONMENT

18 18 ACTIVITIES INNOVATING SOLUTIONS FOR MODERN LIVING 01

19 ANNUAL REPORT The immersed tunnel between Denmark and Germany will make it possible to cross the Fehmarnbelt in less than ten minutes. 02 Links between main North European cities will be significantly improved by the tunnel. 03 The expected development in traffic between Rødby and Puttgarden. Cars Lorries Busses * 2015** *Projection 2015 ferry service. **Projection 2015 fixed link. Source: Environmental Consultation Report for a fixed link across the Fehmarnbelt by Federal Ministry of Transport, Building and Urban Affairs, Germany and Ministry of Transport and Energy, Denmark. 03 INNOVATING SOLUTIONS FOR MODERN LIVING Urban living is highly dependent on the availability of utilities such as water and energy just as mobility is a prerequisite for any urban environment and secures the continuous development of society. We are involved in creating innovative solutions helping to unlock the urban environment of cities and countries. These are groundbreaking projects requiring new thinking which is challenging the boundaries of what is possible.

20 20 ACTIVITIES INNOVATING SOLUTIONS FOR MODERN LIVING GOTHENBURG Follow this project at SWEDEN DENMARK COPENHAGEN MALMÖ LÜBECK HAMBURG BERLIN GERMANY 01 TYING REGIONS CLOSER TOGETHER Links between main cities in Denmark, Sweden and Germany will be significantly improved as the fixed link under Fehmarnbelt transcends from the drawing board into the real world. Ramboll heads the joint venture with Arup and TEC Tunnel Engineering Consultants that designed the immersed tunnel solution, which is supported by Danish Members of Parliament as proposed by Femern A/S, the state-owned company in charge of planning of the fixed link The position of the Fehmarnbelt fixed link. 02 Cross section of a standard tunnel element. 03 Visualisation of the tunnel opening on the German side. Optimising through clever design solutions The immersed tunnel solution under Fehmarnbelt is a study in innovative thinking, as it challenges existing tunnel building standards. It improves functionality through its pioneering longitudinal ventilation system and state-of-the-art safety and security features. By car it will take about ten minutes to go through the tunnel and for train passengers the journey will take a mere seven minutes from coast to coast. A lot of thought has been put in to enhancing the driving experience when passing through the tunnel. The tunnel will be experienced as wide and spacious, and special lighting installations will augment user experience. The tunnel will be constructed from 79 standard elements divided into nine segments and ten special elements to be located every 1.8 km. The concept of using special elements for an immersed tunnel is new and has several benefits. All mechanical and electrical equipment requiring space and maintenance will be gathered in these special elements, meaning that the standard elements can be made technically simpler and uniform and, therefore, better suited for mass production. The tunnel elements will be manufactured at large production facilities on land. They are towed to the tunnel alignment where they will be immersed one by one in a pre-dug trench and linked together. When the elements are in place, they will be covered by stone and sand. After a few years, the natural seabed will be completely re-instated. With a length of about 18 km spanning the distance between Rødbyhavn and Puttgarden, it will be the world s longest combined road-rail tunnel to date. Construction is expected to commence in 2014 and the tunnel is scheduled to open for traffic in

21 ANNUAL REPORT TELECOMMUNICATIONS AS A WAY TO CLIMB THE DEVELOPMENT LADDER For people living in remote areas on the African continent, telecommunications has helped them climb the development ladder and get access to modern life. So far, around 1,000 Ramboll towers have been erected in Africa. In 2011, this will continue on an even larger scale with Ramboll as preferred tower partner to Chinese telecom giant Huawei and based on Ramboll s close relations with Indian telecom operator Bharti Airtel who now is very active in Africa. A new Ramboll project office has been set up in Africa to support this development, and will help facilitate greatly improved communication possibilities for many Africans Digitalised railway communication systems The introduction of a common European Rail Traffic Management System (ERTMS) throughout Europe aims at improving the connectivity between European cities and capitals and allow for seamless travel within the EU. Denmark will be the first country in Europe to upgrade its entire signalling system to ERTMS at once. Currently, Ramboll is heading the consortium designing and planning the national rollout of the new system, which is expected to be completed in As the new ERTMS signalling system uses GSM-R technology for data communication between the train and the signal control systems, all existing analogue radio systems on the Danish railway network have to be replaced with a new digital GSM-R system. As an additional project, Ramboll s telecom division is to design new towers as well as redesign existing towers along Denmark s long distance railway network, and the S-train railway network in the Copenhagen area. This project includes nearly 400 individual sub-projects. 04 Ramboll is to deliver mobile telecom towers to telecom giant Huawei in Sub-Saharan Africa. 05 All existing analogue radio systems on the Danish railway network have to be replaced with a new digital GSM-R system. A UNIQUE TOWER DESIGN Analysis, design and construction of masts and towers are among Ramboll s key competences, and we are ranked as the global No. 2 design firm in this field (ENR 2010). We supply our optimised masts and towers from selected quality production partners in China, Denmark, India, Indonesia, Poland and Thailand to customers around the world. Ramboll s telecom towers follow our unique design concept. The main advantages of our design are that it requires much less steel to produce, low wind resistance means that our towers need smaller foundations, and we use fewer elements than traditionally used. All of this leads to cost-reductions for our customers. In addition, our tower design significantly reduces CO2-emissions, which is a high priority issue both for us and for our customers.

22 22 ACTIVITIES INNOVATING SOLUTIONS FOR MODERN LIVING Gateway to St. Petersburg Pulkovo Airport serves as the gateway to the city of St. Petersburg. At 4.6 million inhabitants, it is the second largest city in Russia. To sustain the city s economic growth, the airport has to accommodate an increasing number of travellers every year. Situated 20km from downtown St. Petersburg, Pulkovo Airport is currently ranked as Russia s fourth largest aviation gateway after the three major Moscow airports. For some years already, Pulkovo Airport has been close to reaching maximum passenger capacity. In 2008, the City of St. Petersburg announced an international tender for a 30-year concession to develop and operate Pulkovo Airport. The tender was won by the consortium Northern Capital Gateway (NCG), with Ramboll supporting NCG as design consultants throughout the whole bidding process. In early 2010, NCG appointed Ramboll as lead designer of the project, which is one of the most ambitious aviation projects currently underway in Europe. The modernisation project comprises a large-scale redevelopment and expansion of the existing airport. The airport redevelopment puts passenger capacity at approx. 14 million passengers per year, and holds the potential for increasing that number to 17 million in the near future (up from 8.4 million passengers in 2010). A new terminal building and pier are to be constructed, while the existing terminal building will be refurbished. Airside infrastructure and operational support facilities will undergo a major overhaul, and landside property development includes construction of a new four-star hotel, a business centre, and extensive parking facilities. Ramboll in Russia, UK, and Denmark contributed to the success of the Pulkovo Airport modernisation project by combining their expertise within various engineering disciplines. This was most prominently demonstrated in the areas of master planning, environment, operational studies, and structural engineering. By working in a multi-disciplinary, cross-cultural environment, the project team delivered a highly sophisticated design project. 01 Visualisation of the extension and refurbishment of Pulkovo Airport. 02 A view of the rollercoaster at Ferrari World Abu Dhabi. 03 Yas Island is an island created for leisure, entertainment and lifestyle, and it is attracting tourists from all over the world.

23 ANNUAL REPORT Visualisation of Pulkovo Airport: 01 Landside property development with a new four-star hotel, a business centre, and extensive parking facilities. 02 The new terminal building and pier. 03 Refurbishment of the existing terminal building. 04 Major overhaul of airside infrastructure and operational support facilities FERRARI WORLD ABU DHABI Ferrari World Abu Dhabi opened its doors in November It is owned by Aldar, Abu Dhabi s leading property development, management and investment company. The iconic sleek red roof, inspired by the classic double curve side profile of the Ferrari GT body, spans 200,000m 2, and carries the largest Ferrari logo ever created. The enclosed indoor area accessible to the public is 86,000m 2 large enough to fit seven football fields. World s largest indoor theme park The newly opened Ferrari theme park in Abu Dhabi is the world s largest indoor park - and the first Ferrari theme park ever. It is situated on Yas Island, an island created for leisure, entertainment and lifestyle, and it is attracting tourists from all over the world. Ferrari World Abu Dhabi is thus part of a transformation process, signifying a move away from the widespread notion of the Middle East as a region focused on oil export to that of a region of tourism and leisure. Large enough to fit seven football fields, the much anticipated theme park delivers an experience that truly lives up to the passion, exhilaration and technical innovation associated with the Ferrari name. The park offers more than 20 Ferrari-inspired rides and attractions, as well as unique shopping experiences. It is an example of a rare case of engineering ingenuity that required Ramboll s multidisciplinary services and the combined skills of more than 60 engineers from structures, building services, facades, geotechnical, infrastructure and fire

24 24 ACTIVITIES INNOVATING SOLUTIONS FOR MODERN LIVING 01 Bella Hotel leans at a gravity-defying 15 degree angle. 02 In the Greater Copenhagen area, Ramboll provided consultancy services for Denmark s largest wastewater centre. 03 Our engineers used the advanced 3D model for their calculations and drawings when estimating the structural potential of the complex Bella Hotel design. 01 The model we developed for Denmark s largest wastewater centre is the most advanced in the market for sewer systems and wastewater purification plants. Christian Nyerup Nielsen, Project Manager, Ramboll Copenhagen s new leaning, twisting and turning landmark Leaning at a gravity-defying 15 degree angle, newly constructed Bella Sky Comwell Hotel in Copenhagen s Ørestad offers a sight never seen before: Two towers leaning in opposite directions at an angle almost four times that of the leaning tower of Pisa. The geometrical dare continues as the top nine floors of tower one and the bottom nine floors of tower two both twist an additional 19 degrees horizontally. Ramboll worked as consulting engineers on structures, sewers and earthworks for the project, and our advanced 3D model has served as a source of the calculations and drawings that have made the complex design possible. The result is a building that challenges the eye and every sense of logic as it leans, twists and turns in relation to its surroundings. The close to 80 meter tall hotel with its 814 rooms and a 44,173 m 2 building area will upon completion during 2011 become the biggest hotel in the Nordic region. New ways of dealing with wastewater Overflowing sewage water is one of the major climate change challenges threathening to pollute drinking water and urban environments. Ramboll was called in to provide consultancy services for Denmark s largest wastewater centre in the Greater Copenhagen area, Lynettefællesskabet, in the realm of their Intelligent Wastewater Handling project aiming to develop, coordinate and control the area s integrated system of sewers, pumping stations, retention reservoirs and treatment plants. Ramboll s contribution was a comprehensive model for run-off and biological treatment that by its scale and complexity is unique. 02

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26 26 ACTIVITIES INNOVATING SOLUTIONS FOR MODERN LIVING LARGE SCALE SOLAR HEATING Large scale solar heating facilities, where water is heated centrally by solar heating panels, represent great potential and are the most costeffective way to use solar energy. In line with the growing popularity of large scale wind energy production, large scale solar heating is becoming equally feasible. It is a competitive solution even without subsidies in district heating systems and for industrial hot water process energy. 01 Learn more about our energy solutions at 01 For years Marstal District Heating has been the worlds largest solar heating facility. 02 Ramboll provides consultancy for a new waste-toenergy facility for Amagerforbrænding. The new facility is designed as an artificial ski slope. Illustrations: BIG. 02 Longterm supply of urban energy Cities rely on energy in order to function, and climate change and conservation of energy supplies have driven the need for creative and sustainable energy solutions. As building density increases the distribution of energy from efficient renewable sources though district heating networks becomes increasingly viable. Waste-to-energy District heating may be produced at wasteto-energy and waste incineration plants - in this way utilising our waste. These facilities recover up to 98% of the energy contained in the waste to produce heat and power. The energy produced from waste typically substitutes energy produced at coal-fired power plants. In this way, CO2 emissions are reduced, and emissions of the greenhouse gas methane from waste disposed of at landfills are avoided. Geothermal heating The world s biggest potential for renewable energy for heating is geothermal hot water, typically warmer than 70 C. It may be found in underground geological formations to a depth of two kilometres. This resource can be used on a large scale, directly or boosted by a heat pump. Offshore wind farms Worldwide, the most competitive renewable energy source for electricity generation is large wind energy turbines, if situated with respect to the environment and the wind energy resource. However, the potential for onshore wind turbines is limited and therefore offshore wind farms often are the preferred solution. Excess electricity from the fluctuating wind may be used to generate and store thermal energy in urban district energy systems.

27 ANNUAL REPORT Servicing the oil and gas industry in a safe, responsible and sustainable way Despite big leaps forward in the development of alternative energy sources, we are still heavily reliant on oil and gas. Fossil fuels will continue to make up the majority of the world s energy supply over the next years. As global energy consumption continues to grow, and many nations struggle to boost their domestic supplies, oil and gas exploration and production activities will continue to play an important role for many years to come. A great deal of Ramboll s projects in the Arabian Gulf and the North Sea reflect this fact. New discoveries are being made and operators are investing in new production facilities in unexplored fields. Here, we contribute by providing feasibility studies including e.g. concept design weight and cost estimates, environmental studies, risk and safety studies, economic studies and authority management. Ramboll also participates in a series of projects extending the lifetime and increasing the capacity of mature fields. Enhanced recovery methods have enabled us to extend the lifetime of aging platforms, and recent projects comprise e.g. maintenance planning, upgrades of produced water facilities and modifications to the loading systems as well as tie-in of new facilities to neighbouring fields. Our trademark is to integrate HSE in every aspect of our projects, from earlyphase studies through the implementation of standards to auditing and follow-up. Our approach to sustainability is multidisciplinary and integrated in all of our services. We base our services on integrity, deep specialist insight and absolute independence of thirdparty providers. In this way we contribute to the safe, responsible and sustainable development within the oil and gas sector. 03 Oil and gas exploration and production activities will continue to play an important role for years to come. Image: Courtesy of DONG Energy. 04 The new biomass power unit in Poland is estimated to reduce CO2 emission by 1.2 million tons per year. 05 Ramboll will provide the design of substructures for 96 3MW wind turbines for Sandbank Power GmbH. Image: Courtesy of DONG Energy TAKING PART IN DESIGNING THE WORLD S LARGEST BIOMASS POWER UNIT For Foster Wheeler, Ramboll is designing automation, electrification and instrumentation for the world s largest power plant fired entirely by biomass fuel. The new CFB (Circulating Fluidized Bed) Green Unit will be built and located in Polaniec, Poland. Poland is committed to produce at the least 15% of the country s electricity from renewable sources by The unit, with a production capacity of 190 MW, will burn wood and agri-fuels. It is estimated to reduce CO2 emission by 1.2 million tons per year. 05

28 28 ACTIVITIES NURTURING COMMUNITY PARTNERSHIPS 01

29 ANNUAL REPORT Visualisation of the new Panum Complex building. Illustration: Architect C. F. Møller/MIR. NURTURING COMMUNITY PARTNERSHIPS Interactions between and within communities is key to creating liveable cities. It s all about engaging with the community you are part of. The holistic approach we take to our projects makes it a natural thing to closely cooperate with customers, partners, end-users and specialists to always reach the optimal solutions. Knowledge environment for international standards To become a vibrant hotspot for natural sciences is the ambitious development plan for the University of Copenhagen s Northern Campus area. During 2010, three international idea competitions were launched to find the advisors with the best proposals for the new science district. Ramboll succeeded in developing the winning formula for all three competitions. The proposal for the first project, the Niels Bohr Science Park, benefited from the close cooperation in the consultancy team. We worked together in an atmosphere of confidence and mutual respect, which made it possible to challenge and inspire each other across disciplines and companies. It was collaboration in the true sense of the word, resulting in the creation of a winning formula out of chaos, says Bjarke Curtz Jansen, team captain of the winning team behind the suggestion for the Niels Bohr Science Park. This collaboration concept was used in the following project proposals, and in the end led to the suggestion for the new Panum Institute being named by the jury as the most convincing and supreme suggestion for an extension in the competition.

30 30 ACTIVITIES NURTURING COMMUNITY PARTNERSHIPS Around 30,000 students and employees are associated with the science institutions at Science City North. 02 The extension of the Panum Institute is to form a distinctive part of Copenhagen s urban landscape and skyline. Illustration: Architect C. F. Møller/MIR. 03 The team designed a characteristic, transparent façade for the new Niels Bohr Science Park. All of us interested in place making, either the people who build, the architects, the planners, the civil engineers, right through to the community and social groups, all of those are involved in creating places in their own way. All of those disciplines, all those cultures, and all those ways of thinking need to start blending together much more. Neil McInroy, Chief Executive, Centre for Local Economic Strategies (CLES). Watch the full interview at The Niels Bohr Science Park The new 45,000m 2 Niels Bohr Science Park is to consist of two separate buildings on either side of one of the busiest roads into the centre of Copenhagen. To provide an all encompassing proposal for the design of the building and its surroundings, Ramboll experts teamed up with subconsultants from Vilhelm Lauritzen, Christensen & Co, GHB Landskabsarkitekter and Collin Gordon and Associates. The team designed a characteristic, transparent façade for the two buildings which visually links the building complex. Inside the building, six large troposphere atriums between each research unit create a space for interaction and vibrant activity, while they also let in daylight and integrate the green surroundings into the building. A passage under the busy road, Jagtvej, with recreational areas on either side comfortably connects the two buildings. Issues such as sustainability and flexibility of the building were highly prioritised by the University, and by taking these requirements into consideration while preparing the design, both were successfully met. 02

31 ANNUAL REPORT Campus North development Tying together the various faculties, research facilities and laboratories as well as improving integration with the city and businesses in the area is the aim for the development of the Campus North area. Ramboll assisted the winning proposal from COBE architects with comprehensive services within infrastructure, environment, sustainability and buildings. The result was a basic design concept for creating a comprehensive network of bicycle paths between already existing small and large recreational areas, rather than creating new recreational areas. So-called knowledge hot spots such as cafés and exhibition areas were also suggested to improve the integration with the local community and ensure collaboration. In addition to COBE and Ramboll, the project team consisted of DS Landscape Architects, Asplan Viak Engineer, Architect Kerstin Höger and Copenhagen Capacity. Panum Complex The 34,000 square metre extension of the Panum Complex is to function as a landmark for international healthcare research, forming a distinctive part of Copenhagen s urban landscape and skyline. The vision is to present a creative and sustainable architectural solution that interacts with the existing buildings and the rest of the city and campus area. The winning proposal for this project was developed by C.F. Møller Architects, Ramboll and SLA as well as sub-consultants from aggebo&henriksen, Gordon Farquharson, Cenergia and Innovation Lab. The design consists of four low buildings, together forming the shape of a star and visually appearing as the foundation of a 16 storey high rise building. The building reflects its surroundings by way of its shape and the colours and materials used. The layout of the building is flexible, and takes into account that the functions of various rooms may be changed over time. SCIENCE DISTRICT AT CAMPUS NORTH 03 Science City North covers a 418 acre urban area in the heart of the Danish capital Copenhagen. Today, approximately 55,000 people live in the area ,000 students and employees are associated with the science institutions in the area. The Faculties of Science, Health Sciences and Pharmaceutical Sciences will be using the new laboratory facilities in the extension of the Panum Institute. The Faculty of Science and the Departments of Chemistry, Computer Science, Mathematical Sciences and Physics (the Niels Bohr Institute) will get new research and education facilities at the new Niels Bohr Science Park.

32 32 ACTIVITIES NURTURING COMMUNITY PARTNERSHIPS Rethinking urban areas The Southwark area on the east bank of the River Thames in the heart of London was a deserted industrial area no more than two decades ago. The transformation of the area into a cultural hub was kicked off by Tate Modern transforming a former power station into a national gallery of international modern art. The Southwark area now houses some of London s top attractions, creative hotspots, scenic villages and acclaimed green spaces. Ramboll has been involved in several of the projects that are part of the extensive renovation of the area, the largest being the extension of Tate Modern. An extension that is more than doubling the current exhibition space of the gallery - and makes it one of the largest cultural buildings in Europe. As with many other urban locations, building in an area such as Southwark presents challenges in the form of already existing structures or remains from ancient buildings that have to be taken into account. When planning to replace two 1960 office blocks at Bankside - a site right next to Tate Modern - it was discovered that the area was congested with hundreds of mini-piles, obstructing foundations for the new development. Due to our recognised expertise within geotechnical engineering in urban areas, we were approached by the customer to suggest a solution. We developed a foundation design consisting of 56m deep mono piles, up to 2.4m in diameter, minimising the need for removing the existing piles. This design was later refined in close collaboration with the contractor to ensure that it could be constructed safely in central London. In this way, Ramboll s design expertise in conjunction with the contractor s practical experience made this a successful project. INSPIRING BUILDINGS WITH MINIMISED MATERIAL AND ENERGY CONSUMPTION In the construction industry, Building Information Modelling (BIM) has proven to be invaluable. With BIM, the structure is visualised before it is constructed, causing dimensions to be tailored, clashing installations to be detected and information to be managed and shared by the different stakeholders. In Norway, John Matland from Ramboll is currently heading the development of a national standard for BIM to ensure the full benefits of the synergies created among architects, engineers, contractors, project owners and future users. 03

33 ANNUAL REPORT New National Museum of Art, Architecture and Design Every capital around the world has its own distinctive attractions and national symbols such as a Parliamentary building, a university and museums. In Oslo, the Norwegian national planning authority, Statsbygg, is currently planning for the very first time to gather the nations most extensive collections of art, architecture and design in one central location. The size, location and combined functionality of the new building will create a totally unique arena for art and for the public. The new National Museum of Art, Architecture and Design will be one of the largest cultural buildings in the Oslo area. A team of experts from across Ramboll with experience from other cultural buildings such as Tate Modern, the opera houses in Denmark and Norway, The British Museum and Royal Festival Hall in London were chosen as engineering consultants to turn the winning design into reality within the areas of buildings, geotechnics, electrical engineering, mechanical engineering, fire and acoustics. Also, our leading Building Information Modelling expertise made us the preferred engineering partner. 01 Ramboll developed a unique foundation design for new buildings at Bankside in London. 02 By using Building Information Modelling buildings are visualised before they are constructed. 03 The Southwark area in the heart of London has been transformed in to a cultural hot spot. 04 A team of experts from across Ramboll are to provide engineering consultancy for the new National Museum of Art, Architecture and Design in Oslo. 05 In Trondheim in Norway, Ramboll is designing a process for negotiations about the future development of the city centre CREATING DESIRABLE URBAN SPACES In most urban areas, making room for the ever increasing number of people moving into the city is a great challenge. You have to ensure that the city retains attractive green areas and squares for people to use while increasing the density and infrastructure in the city. An efficient method for achieving the correct balance when planning urban renewal projects is to include the people living in the area in the process. In Trondheim, Norway an urban area with close to 200,000 inhabitants we are developing a method for including the property owners in the area in the further development of the city centre. Ramboll has designed a process for negotiations about the future development of the area.

34 34 ACTIVITIES NURTURING COMMUNITY PARTNERSHIPS MAJOR POLLUTION ABATEMENT IN ALGERIA The Algerian Ministry of Environment has launched a major programme for pollution abatement of the River Chlef. The 800 km long Chlef is the country s most important river. Around four million people live along the river banks, which also accommodate a large number of heavily polluting industries. Ramboll is to identify the 200 worst polluters by studying existing data, conducting interviews and carrying out flow measurements and analysing water samples. On the basis of these analyses, we are to design sewage networks, local treatment plants for treating wastewater containing heavy metals and other harmful impurities as well as ten large, central wastewater treatment plants. The treated water will, where ever possible, be reused for agricultural irrigation, or returned to the river. Recirculation measures to save water will also be proposed. We are cooperating with long-term partner Hidrokomplex and local expertise, and during the project period, we will be making several study trips to Sweden to illustrate how similar difficulties are dealt with. GROUNDWATER CONTAMINATION (CHLORINATED DISSOLVENTS) IN THE GREATER COPENHAGEN AREA 01 Ramboll carries out a major programme for pollution abatement of the River Chlef in Algeria. 02 Kærgård Plantage is probably one of the most complex polluted waste sites in the world. 03 A targeted approach to improving the quality of drinking water in the Greater Copenhagen area has proven very successful. Pollution waste site with vast complexity For several years, Kærgård Plantage in the western part of Denmark was a tip into which waste products from the pharmaceutical industry were dumped, resulting in a toxic cocktail of contaminants leaking into the ocean and polluting the ground water. Ramboll is responsible for coordinating efforts within the international consortium testing various clean-up techniques to alleviate the pollution. An initial trial utilising remediation technology will be completed in This trial data will be used to construct full-scale remedial systems. The project is carried out for The Region of Southern Denmark and The Danish EPA. 03 High risk of groundwater pollution Abstraction well Waterworks Protecting the resources that flow beneath our feet A steady and sustainable supply of drinking water which costs less - that was the aspiration 15 years ago when seven municipalities in the Greater Copenhagen area joined forces with Ramboll to map out groundwater resources, assess and model contamination risks, and determine actions for sustainable abstraction of groundwater for drinking purposes. The work resulted in a strategy to keep the four million m 3 of groundwater pollution-free and the concerted effort has not only led to a vastly improved water quality, but has also resulted in authorities, companies and citizens becoming increasingly aware of the environment and resources that flow beneath our feet.

35 ANNUAL REPORT CITY PLANNING INVOLVING CITIZENS The participation of local citizens in development planning often improves conditions for the people living in the area and in this way adds value to the area and makes it more desirable to live in. When citizens are invited to participate, they become partners and feel a sense of ownership. They will be less reluctant and more likely to support and promote new initiatives. In cooperation with the Danish Ministry of Social Affairs, Ramboll has developed a concept for citizen involvement in urban development and renewal projects particularly in areas with marginalised people. The initiative takes a resource-based approach to the process and creates value for citizens and urban planners alike. 05 Improving quality of life through health care IT In communities around the world the ever increasing number of people in need of care combined with decreasing financial and human resources represent a huge challenge. Ways of optimising the processes for providing care for both the elderly and the sick are highly in demand. In close cooperation with citizens and partners from hospitals, home care units and municipalities, Ramboll has developed a complete IT product suite for care and health services. The latest part in this portfolio is the CARE@Home module which enables people to communicate, receive assistance and to recover from illness in their own homes. Ipads are placed with the citizens, enabling them to be in close dialogue with health care professionals from a distance. Further, citizens are able to perform and report health measurements themselves, and they are able to access data regarding their care at all times. Data is stored in a central system and can easily be accessed by all parties involved. In this way, it helps to set the minds at rest of the people depending on the system while also allowing for a better quality of life. 04 Our administrative CARE-system is absolutely crucial for ensuring quality and coherence across departments and areas of expertise for all parties involved. This is where we can closely monitor the citizen and work on improving our efforts to make the process more efficient while restoring some degree of independence to them. Louise Thule Christensen, Project Manager at Fredericia Municipality 04 The contributions by local citizens often make development plans better. 05 Ways of optimising processes in care work are highly in demand. 06 Ramboll is responsible for the development and maintenance of the administrative IT systems of the Danish IT Centre for Education and Research, UNI-C. 06

36 36 ACTIVITIES PROMOTING INSPIRATIONAL AND LONGSTANDING DESIGN PROMOTING INSPIRATIONAL AND LONGSTANDING DESIGN One of the things that is preventing sustainability from really advancing is this general idea that sustainability is all about how much of our existing quality of life we are prepared to sacrifice to afford becoming sustainable. It s all about the classic protestant idea that things have to hurt in order to do good. Bjarke Ingels, Architect, BIG. Watch the full interview at Creating sustainable design without compromising aesthetics and functionality requires creative thinking. By means of innovation and extensive experience we help create solutions that adapt to the environment. We take a facts-based approach to sustainability and base our proposals on making the most of the given conditions. 01 A transparent Town Hall in Tallinn The new town hall and public plaza in Tallinn, the beautifully preserved capital of Estonia, are to be placed right between the medieval city walls and the open waters of the Gulf of Finland. After winning an international design competition, BIG architects approached Ramboll to provide the complete engineering services. The design of the building is based on the idea of two-way transparency, which is a prerequisite for participatory democracy. Panoramic windows allow the citizens to see their city at work, and the public servants will be able to look out on their city and its citizens. The town hall consists of a series of boxes appearing to float above the ground. Underneath the buildings there is a public recreational area for citizens to use. The southernmost box is much taller than the rest and echoes the form of the classic gothic town hall spire, thus reflecting Tallinn s architectural and civic history. Using industry leading computer modeling techniques, we have been able to efficiently and economically model the structure in close collaboration with the architects. The city authorities have set very strict energy consumption targets for the building. The Ramboll design team was asked to ensure that the building meets passive house levels of energy performance a real challenge when the design of the building has substantial amounts of glazing. To help achieve the required annual energy consumption target, we have introduced features such as double skin façades and automatic roller blind systems to reduce cooling demands. Water evaporation is used for cooling and the natural low ambient temperatures of Tallinn during summer are used to condition the building. By eliminating refrigeration energy, this enables our design to focus further on enhancing the thermal insulation and achieving low heating demand. As lighting typically accounts for the majority of the energy consumption in office environments, an intelligent lighting control system linked to an automatic blind system and daylight control enables significant reductions in energy usage. Learn more about Tallinn Town Hall at 01 The design of the new Tallinn Town Hall reflects Tallinn s architectural and civic history. 02 After winning an international design competition, BIG architects approached Ramboll to provide the complete engineering services. Illustration: BIG.

37 ANNUAL REPORT

38 38 ACTIVITIES PROMOTING INSPIRATIONAL AND LONGSTANDING DESIGN 01 Sustainable considerations: Economic Social Environmental Climatic DESIGNING SUSTAINABLE BUILDINGS Sustainability has become a global and competitive necessity. To make it easier to evaluate sustainability considerations early in the design process, Ramboll has developed a unique tool called RamSuB. This tool turns sustainability into measurable results and visualises the degree of sustainability achieved in a given project. RamSuB is based on a scoring system in which each project is awarded credits according to four overall areas of sustainability: economic, environmental, climatic and social. The tool features a unique context-sensitive calculator, which takes into consideration all issues regarding the specific context of the project being evaluated, such as energy and water supply conditions at the site. With our suggestion for a future city district, we have focused on all aspects of sustainability. We have focused on urban development which does not lead to gentrification, with the goal to enable the present inhabitants and immigrants to stay in the area. This ensures that the city district remains an interesting, diverse place with a variety of opportunities. Rune Tøndell, Project Manager, Ramboll 02 Strømsø as a future-oriented city For several decades, the Municipality of Drammen in Norway has taken a targeted approach to improving its urban environment. As a part of this initiative, an idea competition for the development of the Strømsø district was launched. The aim was to get creative input for how the area may be turned into a future-oriented and human friendly city environment with reduced demands for transport and minimal emissions of climate gasses. Ramboll engineers and DRMA Architects submitted the proposal Norway in the future which was awarded second place in the competition. The jury praised the enthusiasm and diversity of the project, and recommended that elements from the proposal be applied in the further development of the area. The proposal is a vision for the sustainable city of the future, based on both technical solutions and the social aspects of a modern way of life. The main idea is to turn Strømsø into a dense and vibrant city. The aim is to organise facilities such as shopping, work places, schools and care facilities in a central part of the city, thus reducing the need for car transportation. The goal is to double the building density and work places while the CO2 emissions should be reduced by 50% in To achieve this, existing buildings are to be upgraded to low-energy standards, roads are gradually to be turned into pedestrian areas and bicycle tracks, access to public transport is to be improved, heating will be provided from a central heating plant, and mixed-use buildings for shops, offices and leisure are to be built. The social life aspects were also highly valued in the proposal; a bazaar and shared shops where citizens can meet and trade their own goods were suggested.

39 UAL REPORT SAMSUNG GREEN BUILDING MATERIAL RESEARCH There is an increasing focus on constructing sustainable buildings around the world. Samsung C&T have asked Ramboll to conduct a green building market research project for the Middle East, Singapore, China and India region. We will provide a green building guideline and strategy from the contractor s perspective. In addition, we will conduct research of suppliers of green building materials on the international market and analyse the cost implications of building with green materials % 67% The percentage of reduction in CO2 emissions upon completion of the development project when using high environmental standards compared to current building standards. 68% 54% 64% 67% 60% 67% 01 RamSuB presentation of the degree of sustainability achieved in a given project. 02 Ramboll s vision for Strømsø as the sustainable city of the future. Illustration: MIR. 03 Samsung C&T have asked Ramboll to conduct a green building market research project. 04 The main idea is to turn Strømsø into a dense and vibrant city. Illustration: MIR. 05 Ramboll s vision for Strømsø is to double the building density and work places while the CO2 emissions should be reduced by 50% in

40 40 ACTIVITIES PROMOTING INSPIRATIONAL AND LONGSTANDING DESIGN VERTICAL GARDENS Green roofs or green façades can reduce storm water runoff, improve air quality, mitigate urban heat, reduce the demand for air conditioning and greenhouse gas emissions, and provide a habitat for birds and wildlife. For the European Environmental Agency (EEA), innovative Ramboll engineers developed a clever system for mounting a 25x25m art installation consisting of 5,000 flowers on the façade of EEA s main office in a central location in Copenhagen. Even though this installation was for a temporary event, the technology developed may be used for a more permanent introduction of greenery in urban areas in future Green roofs or green façades have positive effects on the environment in urban areas. 02 Illustration of how storm water is slowed down at the Nya Krokslätt site. 03 In the new Copenhagen district, Ørestad, surface canals have been designed to collect rainwater and add recreational value. Creating livable urban spaces The Nya Krokslätt area in Sweden is a former factory site to be transformed into an international role model for the sustainable way of life. As the site is situated between a mountain and a stream, ways to slow down and lead storm water are needed. Ramboll is developing a concept with simple and efficient methods such as vegetation combined with ponds, streams and soak away pits as well as glazed green-blue climate zones surrounding the buildings. This concept provides a multifunctional, rich urban environment for the benefit of future citizens in the area. The growth in the frequency and severity of extreme rainfall has significantly increased the risk of flooding from rivers and urban drainage systems of insufficient capacity. It is a huge investment to dig into the earth and expand the sewer systems in urban areas, so other measures may prove to be better and cheaper alternatives. In fact, water from heavy rainfall may be dealt with in ways which will also have a great effect on the quality of urban life. In the Copenhagen area, Ramboll has carried out a complete overall flood risk calculation including an assessment of damages and the cost of adaptation measures. Based on these calculations, an adaptation plan where sustainable drainage and traditional sewer constructions are combined in the optimum way is developed. For instance, when the new Copenhagen district, Ørestad, was planned, alternative measures for handling rainwater were taken into account. Surface canals have been constructed to collect rainwater from roofs, and also rainwater from roads is treated locally before it is let into the canals.

41 ANNUAL REPORT FINANCIAL STATUS REVENUE UP 10% CASH CONVERSION 95% EBITA MARGIN 6.5%

42 42 FINANCIAL STATUS ACCOUNTING POLICIES (AUDITED) NEW RAMBOLL HEAD OFFICE In August 2010, Ramboll moved into a new head office in Copenhagen designed by architects DISSING+WEITLING. The vision for the building is to provide a holistic and sustainable role model environment with openness, knowledge sharing and cooperation as the focal points. The overall idea that ties together external functions such as the foyer, auditorium, lunch area and café was inspired by la Rambla in Barcelona. La Rambla is the world famous shopping street which is the lifeblood of the entire city, buzzing with cafés, shoppers, artists, inhabitants and tourists. In the same way, it is the architects idea that the ground floor will be Ramboll s Rambla. All the external functions are connected here and in this way creating activity and a vibrant setting.

43 (AUDITED) ANNUAL REPORT ACCOUNTING POLICIES BASIS OF PREPARATION The Annual Report of Ramboll Group A/S is prepared in accordance with the provisions applicable to large enterprises in accounting class C under the Danish Financial Statements Act. The Annual Report has been prepared under the same accounting policies as last year. Ramboll Group A/S has chosen to deviate from the form requirements of the Danish Financial Statements Act relating to the income statement. Income from associated companies and joint ventures is presented as part of EBITA in order to provide a fair view of the Group s operations. Recognition and measurement On initial recognition, assets and liabilities are measured at cost. Subsequently, assets and liabilities are measured as described for each individual item below. Certain financial assets and liabilities are recognised at amortised cost. Amortised cost is stated as original cost less any principal payments plus or minus the cumulative amortisation of any difference between cost and the nominal amount. In this way, capital losses and gains are amortised over the maturity. Recognition and measurement take into consideration anticipated losses and risks that arise before the time of presentation of the Annual Report and which confirm or invalidate affairs and conditions existing at the balance sheet date. Basis of consolidation The Consolidated Financial Statements comprise the Parent Company, Ramboll Group A/S, and entities in which the Parent Company has control, i.e. the power to govern the financial and operating policies generally accompanying a shareholding of more than half of the voting rights. Subsidiaries are fully consolidated from the date on which control is transferred to Ramboll Group A/S. The cost of an acquisition is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange plus costs directly attributable to the acquisition. Identifiable assets acquired and liabilities assumed in a business combination are measured initially at their fair values at the acquisition date, irrespective of the extent of any minority interest. The excess of the cost of acquisition over the fair value of Ramboll Group A/S share of the identifiable net assets acquired is recorded as goodwill. If an investment includes deferred consideration, this is recognised at cost at the time of investment and subsequently measured at amortised cost in subsequent periods. Changes in deferred consideration are reflected in the value of goodwill. Intercompany transactions, balances, realised and unrealised gains and losses on transactions between Group companies are eliminated. Presentation currency and foreign currency translation The financial statements for the Group and the Parent Company are presented in DKK thousands. Foreign currency transactions are translated into DKK using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in financial income and expenses in the income statement. Intercompany loans, which are part of a net investment in subsidiaries, are not considered to be monetary items, but are considered as equity investments. The monetary fluctuations are recognised directly through equity. The results and financial position of foreign subsidiaries and associates with a functional currency different from the presentation currency of the Group are translated into the presentation currency as follows: balance sheet item presented are translated at the closing rate at the date of the balance sheet, translated at the dates of the transactions (or approximate average rates), and from the difference between closing and average rates and between opening and closing rates are recognised as a separate component of equity. On consolidation, exchange differences arising from the translation of the net investment in foreign entities, and of borrowings and other currency

44 44 FINANCIAL STATUS ACCOUNTING POLICIES (AUDITED) instruments designated as hedges of such investments, are taken to shareholders equity. Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets of the foreign entity and translated at the closing rate. Derivative financial instruments Derivative financial instruments are initially recognised in the balance sheet at cost and are subsequently remeasured at their fair values. Positive and negative fair values of derivative financial instruments are classified as Other receivables and Other payables, respectively. Changes in the fair values of derivative financial instruments are recognised in the income statement unless the derivative financial instrument is designated and qualifies as hedge accounting. Changes in fair values of derivative financial instruments, which qualify as hedge accounting, are recognised in equity. Where the expected future transaction results in the acquisition of non-financial assets, any amounts deferred under equity are transferred from equity to the cost of the asset. Where the expected future transaction results in income or expense, amounts deferred under equity are transferred from equity to the income statement in the same item as the hedged transaction. Minority interests In the statement of Group results and Group equity, the elements of the profit and equity of subsidiaries attributable to minority interests are stated as separate items in the income statement and the balance sheet. Leases Leases of property, plant and equipment where substantially all the risks and rewards of ownership are transferred to the Group are classified as finance leases. Finance leases are capitalised at the lease s inception at the lower of the fair value of the leased property and the present value of the minimum lease payments. Lease payments are allocated between the liability and finance charges so as to achieve a constant rate of interest on the finance balance outstanding. The corresponding lease obligations, net of finance charges, are included in other long-term payables. The interest element of the finance cost is charged to the income statement. The property, plant and equipment acquired under finance leases are depreciated over the shorter of the useful life of the asset or the lease term taking into consideration bargain purchase options. All other leases are classified as operating leases. Payments made under operating leases are charged to the income statement over the period of the lease. Income statement Revenue Revenue in the Group consists of the fair value of the consideration received or receivable for the sale of goods and services in the ordinary course of the Group s activities. Revenue is shown net of value-added tax, returns, rebates and discounts and after eliminating sales within the Group. The Group recognises revenue when the amount of revenue can be reliably measured and it is probable that future economic benefits will flow to the entity and when specific criteria have been met for each of the Group s activities as described below. The amount of revenue is not considered to be reliably measurable until all contingencies relating to the sale have been resolved. The Group bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement. The Group sells services within engineering, environment, management and IT. These services are provided on a time and material basis or as a fixedprice contract, with contract terms generally ranging from less than one year up to ten years. Revenue from time and material contracts is recognised at the contractual rates as labour hours are delivered and direct expenses are incurred. Revenue from fixed-price contracts is recognised under the percentage-of-completion (POC) method. Under the POC method, revenue is generally recognised based on the services performed to date as a percentage of the total services to be performed. If circumstances arise that may change the original estimates of revenues, costs or extent of progress toward completion, estimates are revised. These revisions may result in increases or decreases in estimated revenues or costs and are reflected in income in the period in which the circumstances that give rise to the revision become known by Management. Revenue segment information Information is provided on service areas for the Group. The revenue by service area is based on the Group s seven service areas. Revenue by geographical market is based on the location of the entity which owns the projects. Project costs Project costs consist of costs directly related to projects, such as travel expenses, costs of external services and other project costs. Staff costs are not included in project costs. External costs External costs consist of costs such as administration, marketing, travel and accommodation, office rent, IT costs and other external costs.

45 ANNUAL REPORT Staff costs Staff costs consist of costs such as wages and salaries, pension costs and other social security benefits of employees and of the Executive and Supervisory Boards. Other operating income and expenses Other operating income and other operating expenses comprise items of a secondary nature to the core activities of the enterprises. Financial items Financial income and expenses consist of interest income and expenses, foreign exchange gain or loss and other interest income and expenses. Corporation tax and deferred tax Tax consists of current tax and changes in deferred tax for the year. The tax relating to the income for the year is recognised in the income statement. Current tax receivable is recognised in the balance sheet if excess tax has been paid on account and a current tax payable is recognised if a deficiency exists. Deferred tax is measured by using the balance sheet liability method on all temporary differences arising between the book values of assets and liabilities, and the amounts used for taxation purposes. Deferred tax is not recognised on temporary differences related to goodwill not deductible for tax purposes. Deferred tax is measured according to the tax rules and at the tax rates under the legislation at the balance sheet date that are expected to apply when the temporary differences are eliminated. Changes in deferred tax due to changes in the tax rates are recognised in the income statement. Deferred tax assets, including the tax base of tax losses carried forward, are measured at the value at which it is expected that they can be utilised by elimination against tax on future earnings or by set-off against deferred tax liabilities. Balance sheet Intangible assets Goodwill represents the excess of the cost of an acquisition plus costs directly attributable to the acquisition over the fair value of the Group s share of the net identifiable assets of the acquired subsidiary/associate at the date of acquisition. Goodwill in the Group on acquisitions of subsidiaries is included in intangible assets, and is amortised over the following expected useful lives. Other intangible assets, comprising patents and licences, are capitalised and amortised over an appropriate expected useful life, within the ranges shown below. The following useful lives are applied: Goodwill: 5-20 years Software, patents and licences: 3-7 years Property, plant and equipment and leasehold improvements Property, plant and equipment and leasehold improvements are measured at historical cost less accumulated depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets. EMPLOYEE DEVELOPMENT AND TRAINING During 2010, we established the global Ramboll Academy to ensure a common approach to employee development. This included the launch of two extensive programmes on leadership and international project management, which for the first time gathered participants from all of Ramboll s units. The training concept builds on participant involvement and a chance to work with real-life challenges and peer feedback in this way strengthening the ties between our future leaders and project managers.

46 46 FINANCIAL STATUS ACCOUNTING POLICIES (AUDITED) The following useful lives are applied: Buildings: years IT: 3 years Plant and equipment: 5 years Leasehold improvements: 1-10 years. The assets residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. Conversely, property, plant and equipment and leasehold improvements purchased for DKK 50,000 or less are expensed. Gains and losses on disposal are determined by comparing proceeds with the carrying amount. These are included in the income statement. Associates Associates are all entities over which Group has significant influence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates are accounted for by the equity method of accounting, calculated on the basis of the Group s accounting policies and after deduction or addition of the Group s share of any unrealised intra-group gains or losses. Investments in associates are initially recognised at cost. Ramboll Group s investments in associates include goodwill (net of any accumulated amortisation and/or impairment loss) identified on acquisition. On acquisition of associated companies, the difference between the cost and the book net assets of the acquired company is calculated at the date of acquisition after adjustment to fair value of the identifiable assets and liabilities (purchase method). Any remaining positive balances (goodwill) are recognised as investments in associated companies in the balance sheet and amortised in the income statement on a straightline basis over the estimated useful life of the investment. In the Income Statement, income is recognised from associates which comprises the share of profit after tax and less amortisation of goodwill. Joint ventures Undertakings which are contractually operated jointly with one or more other undertakings (joint ventures) and which are thus jointly controlled are recognised in accordance with the equity method. In the Income Statement, income is recognised from joint ventures which comprises the share of profit before tax. Impairment of assets The book values of both tangible and intangible assets, such as goodwill, are written down if indications of impairment are present. If the carrying amount is found to be greater than the implied fair value, then impairment has occurred and the book value of the asset is COMMON KNOWLEDGE MANAGEMENT PLATFORM In 2010 our new Knowledge Management Platform, RamLink, was launched. The RamLink version 1 is designed as a common platform allowing our employees to access and share important knowledge about people and projects in Ramboll. With close to 9,000 employees scattered around the world, the system offers the opportunity to easily and quickly identify relevant experts or project experience to provide the most optimal solutions for our customers.

47 ANNUAL REPORT written down to its recoverable amount. The recoverable amount is the higher of the net selling price and value in use. Other investments Other investments comprise listed securities, deposits and other receivables. Deposits and other receivables are measured at cost less any reduction according to individual assessment. Listed securities are recognised at fair value at the trade date and subsequently measured at market price. Fair value adjustments are recognised in the income statement. Receivables Accounts receivables, trade are recognised initially at fair value and subsequently measured at cost less provision for impairment. A provision for impairment of trade receivables is established when there is objective evidence that Ramboll Group will not be able to collect all amounts due according to the original terms of receivables. Work in progress Work in progress is measured at the sales price of the work performed, corresponding to direct and indirect costs incurred plus a proportionate share of the expected profit calculated on the basis of an assessment of the stage of completion. The sales price is reduced by progress billings. Invoices on account beyond the stage of completion of contracts are calculated separately for each contract and recognised as payments from customers under short-term liabilities. Prepayments Prepayments consist of expenses paid relating to subsequent financial years and consist primarily of prepaid interest, rent and insurance. Equity Dividend distribution proposed by Management for the year is disclosed as a separate equity item. Provisions A provision is recognised when the Group has a present legal or constructive obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation. Provisions are recognised for items such as legal claims, restructuring provisions, pension provisions, deferred tax provisions and any other necessary provisions. FINANCIAL RATIOS Number of employees, end of year = Number of all permanent and temporary employees at the end of the year, regardless of their working hours. Number of full time employee equivalents = EBITA margin = Operating margin (EBIT margin) = Return on invested capital (ROIC) = Return on equity (ROE) = Cash conversion ratio = Equity ratio (solvency ratio) = Hours registered in time sheets Standard working hours during the year EBITA x 100 Revenue Operating profit x 100 Revenue EBITA x 100 Average invested capital including goodwill Profit for the year x 100 Average shareholders equity EBITA + Change in working capital x 100 EBITA Shareholders equity x 100 Total assets The financial ratios have been prepared in accordance with the guidelines of the Danish Society of Financial Analysts (Den Danske Finansanalytikerforening).

48 48 FINANCIAL STATUS ACCOUNTING POLICIES (AUDITED) Provision for pensions Contributions payable under defined contribution plans are recognised as an expense along with delivery of employee service giving rise to the obligation to pay the contribution. Costs under defined benefit plans are recognised in line with the performance of the employee services entitling the employees to the benefits. The obligation is measured at the present value of the expected pension payments attributable to the services delivered at the balance sheet date. The obligation is measured on the basis of actuarial assumptions, which are reassessed on a regular basis. Plan assets are recognised at their fair value at the balance sheet date. Plan assets and related obligations are presented on a net basis in the balance sheet. Gains and losses arising from changes in actuarial assumptions are recognised in the year in which they arise. Multi-employer plans for which sufficient information is not available are treated as defined contribution plans. Provision for claims Claims from customers concerning single projects not covered by insurance. Provision for claims are recognised at their fair value at the balance sheet date. Financial obligations Loans from banks that are expected to be held to maturity are recognised on the date of borrowing as the net proceeds received less transaction costs incurred. In subsequent periods, the loans are measured at amortised cost, corresponding to the capitalised value using the effective interest rate. Accordingly, the difference between the proceeds and the nominal value is recognised in the income statement during the terms of the loan. Other financial obligations are measured at amortised cost, which substantially corresponds to their nominal value. Other payables Other payables mainly consist of salary related items (bonuses, pension, tax, holiday accruals, etc.), accrued interest and not received or approved vendor invoices. Parent Company Investments Investments in subsidiaries are recognised and measured according to the equity method. Investments in subsidiaries are recognised in the Parent Company s income statement at the proportionate share of profit. On acquisition of subsidiaries, the difference between the cost and the book net assets of the acquired company is calculated at the date of acquisition after adjustment to fair value of the identifiable assets and liabilities (purchase method). Any remaining positive balances (goodwill) are recognised as investments in subsidiaries in the balance sheet and amortised in the income statement on a straight-line basis over the estimated useful life of the investment. The portion of the subsidiaries profits for the year that is not distributed as dividend becomes retained earnings according to the equity method. Cash flow The cash flow statement shows the Group s cash flows for the year from operating, investing and financing activities, respectively, and also includes cash and cash equivalents at the beginning and at the end of the year. Cash flows from operating activities are presented indirectly and are calculated as the income for the year adjusted for non-cash operating items, change in working capital and income taxes paid. Cash flows from investing activities consist of payments in connection with acquisitions and disposals of intangible assets, property, plant and equipment, and investments. Cash flows from financing activities consist of repayments on longterm debt and increase of bank loans. Cash and cash equivalents consist of cash at bank, cash in hand and current securities with a maturity period shorter than three months, less short-term bank loans due on demand. The cash flow statement cannot be immediately derived from the published financial statements.

49 ANNUAL REPORT RESPONDING TO THE URBANISATION CHALLENGE The world s attention is on cities, and for a good reason. From a global perspective, cities have become the engines of economic prosperity and development. Across Ramboll, a virtual Knowledge Event around the theme of urbanisation took place in During the event, examples of our urban solutions were displayed, and they are now being developed to form the backbone of our future services. Furthermore, Ramboll hosted an Urbanisation Event in December, highlighting how cities are responding to global development challenges such as climate change, energy efficiency, and innovative economic development. Around 130 customers, employees and collaboration partners listened in on inspiring presentations and engaged in dialogue, during a joyful day at Ramboll Head Office.

50 50 FINANCIAL STATUS FINANCIAL STATEMENTS (AUDITED) FINANCIAL STATEMENTS INCOME STATEMENT Group Parent company Note DKK thousand Revenue 6,074,921 5,510,645 76,851 69,307 Project costs -824, , External costs -1,019, ,414-43,128-42,287 2 Staff costs -3,782,390-3,437,113-39,916-32,922 3 Depreciation and amortisation -76,781-73, Income from associates and joint ventures 21,334 12, EBITA 393, ,443-6,767-6,712 3 Goodwill amortisation -97,040-83, Other operating income Other operating costs - -1, Income from subsidiaries , ,229 Operating profit (EBIT) 296, , , ,517 4 Financial income 52,944 45,771 48,400 45,524 5 Financial expenses -73,710-69,781-44,591-52,403 Profit before tax 275, , , ,638 6 Tax -99,107-87,825 1,263 3,042 Profit before minority 176, , , ,680 Minority interest -2, Profit for the year 174, , , ,680 Proposed profit appropriation: Proposed dividend 26,250 26,250 Retained earnings 148,440 98, , ,680

51 ANNUAL REPORT CASH FLOW STATEMENT Note DKK thousand Group Operating activities: Profit before tax 275, ,626 3 Depreciation and amortisation 173, ,322 Income from associates and joint ventures -21,334-12,456 Unrealised exchange gains, net -15,956-10,592 Cash flow from operating activities before change in working capital 412, ,900 Change in work in progress -9,235 41,841 Change in receivables -110,605-4,126 Change in payments from customers 28,962-74,273 Change in payables 70,799 60,950 Change in working capital -20,079 24,392 Change in provisions -10,914-43,038 Income tax paid -49,455-94,568 Cash flow from operating activities 332, ,686 Investments: Investment in tangible assets, net -175,654-45,511 Free cash flow 156, ,175 7 Acquisitions of companies -81,194-31,816 Investment in intangible assets -6,969-2,735 Investment in other financial assets 12, Cash flow from investing activities -251,298-80,666 Financing activities: Loan payments, net 43, ,535 Dividend to minority interest -1,043-2,544 Dividend to shareholders -26,250-26,250 Cash flow from financing activities 16, ,329 Net cash flow for the year 96,764-77,309 Total cash and cash equivalents at 1 January 399, ,953 Net cash flow for the year 96,764-77,309 Exchange rate adjustments 12,485 7,130 Total cash and cash equivalents at 31 December 509, ,774

52 52 FINANCIAL STATUS FINANCIAL STATEMENTS (AUDITED) BALANCE SHEET, ASSETS Group Parent company Note DKK thousand Goodwill 839, , Software, licences, patents etc. 13,861 13, Intangible assets 852, , Property 13,208 11, Plant and equipment 217, ,345 1,384 2,046 Leasehold improvements 35,751 9, Property, plant and equipment 266, ,970 1,384 2, Investments in subsidiaries - - 1,360,461 1,321, Investments in associates and joint ventures 35,144 26, Amounts owed by subsidiaries , , Other investments 5,816 2, Other receivables 6,118 6, Deposits 28,103 41, Investments 75,181 76,643 1,741,170 1,663,970 Total fixed assets 1,194,390 1,009,394 1,742,597 1,666,107 Accounts receivables, trade 1,160,136 1,035,936 11,709 3, Work in progress 442, , Other receivables 99,050 61, Amounts owed by subsidiaries ,878 23,834 Amounts owed by associates Tax receivables 91,648 72,025 32,086 49,622 6 Deferred tax assets - - 2,681 2,481 Prepayments 122,549 85,266 2,498 2,536 Receivables 1,916,205 1,668, ,118 81,866 Cash at bank and in hand 509, , , ,187 Total current assets 2,425,228 2,067, , ,053 Total assets 3,619,618 3,077,349 2,075,246 1,917,160

53 ANNUAL REPORT BALANCE SHEET, EQUITY AND LIABILITIES Group Parent company Note DKK thousand Share capital 35,000 35,000 35,000 35,000 Retained earnings 1,259,344 1,009,523 1,259,344 1,009,523 Proposed dividend 26,250 26,250 26,250 26, Shareholders equity 1,320,594 1,070,773 1,320,594 1,070,773 Minority interest 9,967 12, Provision for pensions 6,209 6, Provision for deferred tax 105,760 83, Provision for claims, etc. 30,492 35, Total provisions 142, , Bank loans 304, , , ,619 Amounts owed to associates Other payables 15,701 32, Total long-term liabilities 320, , , ,619 Bank loans 1,418 9, Payments from customers 389, , Trade payables 236, ,066 2,698 2,465 Amounts owed to subsidiaries , ,088 Amounts owed to associates 4,339 6,158 33,011 - Corporation tax 112,701 69, Other payables 1,080, ,663 70,623 56,215 Total short-term liabilities 1,825,846 1,583, , ,768 Total liabilities 2,146,596 1,869, , ,387 Total liabilities and shareholders equity 3,619,618 3,077,349 2,075,246 1,917, Contingent liabilities 20 Operational lease obligations 21 Auditors fee 22 Related parties and ownership 23 Financial risk management

54 54 FINANCIAL STATUS NOTES (AUDITED) NOTES DKK THOUSAND Group Note 1 Segment information Revenue by service area: Buildings & Design 2,100,705 1,852,805 Infrastructure & Transport 1,540,008 1,303,348 Industry & Oil/Gas 615, ,744 Energy & Climate 368, ,569 Environment & Nature 568, ,645 Management & Society 411, ,261 IT & Telecom 470, ,274 6,074,921 5,510,645 Revenue by geographical area: Denmark 2,375,831 2,295,640 Sweden 1,053, ,066 Norway 1,133, ,146 Finland 631, ,676 UK 294, ,602 Middle East 210, ,929 Russia 156,995 65,683 Rest of Europe 101, ,467 Rest of World 116,885 97,436 6,074,921 5,510,645 Group Parent company Note 2 Staff costs Employees: Wages and salaries -3,210,231-2,938,728-22,851-13,531 Pension costs -253, ,983-2,494-2,241 Other social security costs -304, , ,768,544-3,420,397-26,070-16,206 Executive Board -12,096-15,166-12,096-15,166 Board of Directors -1,750-1,550-1,750-1,550-3,782,390-3,437,113-39,916-32,922 Number of employees: Number of employees end of year 8,970 8, Number of full time employee equivalents 8,229 8, In 2009, salaries to the Executive Board was affected by severance payments.

55 ANNUAL REPORT Group Parent company Note 3 Depreciation and amortisation Software, licences, patents etc. -7,711-6, Leasehold improvements -4,610-6, Property Plant and equipment -64,119-59, Depreciation and amortisation -76,781-73, see note 8 and 9 Goodwill -97,040-83, Goodwill amortisation -97,040-83, see note 8 Depreciation and amortisation -173, , Group Parent company Note 4 Financial income Interest income from subsidiaries ,798 18,673 Interest income from securities Foreign exchange gain 47,912 38,507 30,693 22,677 Other financial income 5,032 7, ,011 52,944 45,771 48,400 45,524 Group Parent company Note 5 Financial expenses Interest expense to subsidiaries ,371-6,164 Foreign exchange loss -36,260-31,013-16,560-17,650 Other financial expenses -37,450-38,768-26,660-28,589-73,710-69,781-44,591-52,403

56 56 FINANCIAL STATUS NOTES (AUDITED) Group Parent company Note 6 Tax Current tax on profit for the year -76,654-93,704 3,908 2,926 Current deferred tax (movements in deferred tax) -22,463-4, ,982 Adjustments in respect of prior years 3,348 11, Tax for the year -95,769-86,125 4,601 4,742 Tax for the year is allocated in the following way: Tax on profit for the year -99,107-87,825 1,263 3,042 Tax on equity movements 3,338 1,700 3,338 1,700 Tax for the year -95,769-86,125 4,601 4,742 Deferred tax: Goodwill Licences Plant and equipment -5,945-6, Leasehold improvements Accounts receivable, trade -9,362-10, Work in progress 131, , Deferred expenses ,271 2,253 Provisions -11,310-15, Deferred tax, liabilities 105,760 83, Deferred tax, assets - - 2,681 2,481 Deferred tax is allocated using the actual tax rate. Ramboll Group A/S is jointly taxed with its domestic subsidiaries. As the management company of the joint taxation, the parent company provides for the aggregate Danish tax payable on the taxable income of these subsidiaries. The jointly taxed companies are included in the scheme for payment of tax on account. The domestic subsidiaries are only liable for the income tax, which relates to the income allocated to those companies. When the management company has received the tax payments from the domestic subsidiaries, the management company takes over this liability. Group Note 7 Acquisition of companies Fixed assets -4,504-1,687 Work in progress -2,764-1,009 Operating receivables -27,380-18,281 Cash and cash equivalent -17,430-8,869 Long-term liabilities 5, Current liabilities 16,513 18,343 Group goodwill -72,291-29,333 Purchase price -102,424-40,685 Cash in acquired companies 17,430 8,869 Deferred consideration 3,800 - Acquisition of companies -81,194-31,816

57 ANNUAL REPORT Group Parent company Note 8 Intangible assets Goodwill Intangible assets Goodwill Intangible assets Opening acquisition value 1,117,173 46, Additions 72,291 7, Disposals -1, Exchange rate and other adjustments 113, Closing acquisition value 1,300,486 53, Opening amortisation -342,840-33, Disposals 1, Amortisation for the year -97,040-7, Exchange rate and other adjustments -23,568 1, Closing amortisation -461,463-39, Book value at 31 December 839,023 13, Amortisation period (years) Group Parent company Goodwill Intangible assets Goodwill Intangible assets Opening acquisition value 1,052,797 43, Additions 29,333 2, Exchange rate and other adjustments 35, Closing acquisition value 1,117,173 46, Opening amortisation -265,349-26, Amortisation for the year -83,069-6, Exchange rate and other adjustments 5, Closing amortisation -342,840-33, Book value at 31 December 774,333 13, Amortisation period (years)

58 58 FINANCIAL STATUS NOTES (AUDITED) 2010 Group Parent company Note 9 Property, plant & equipment Property Plant and Leasehold Property Plant and Leasehold equipment improvements equipment improvements Opening acquisition value 12, ,887 38,141-4,096 - Opening adjustment - -64, Additions from acquired companies - 4, Additions 1, ,510 31, Disposals ,309-2, Exchange rate and other adjustments , Closing acquisition value 14, ,087 68,691-3,348 - Opening depreciation ,542-28, ,050 - Opening adjustment - 64, Disposals - 21, Depreciation for the year ,119-4, Exchange rate and other adjustments -9-13, Closing depreciation -1, ,721-32, ,964 - Book value at 31 December 13, ,366 35,751-1,384 - Depreciation period (years) The net book value of finance leases amounts to DKK 11,637 thousand Group Parent company Property Plant and Leasehold Property Plant and Leasehold equipment improvements equipment improvements Opening acquisition value 9, ,606 36,633-3,817 - Additions from acquired companies - 1, Additions 1,954 44,692 1, Disposals , Exchange rate and other adjustments 1,704 22, Closing acquisition value 12, ,887 38,141-4,096 - Opening depreciation ,943-21, ,288 - Disposals - 19, Depreciation for the year ,658-6, Exchange rate and other adjustments 39-18, Closing depreciation ,542-28, ,050 - Book value at 31 December 11, ,345 9,669-2,046 - Depreciation period (years) The net book value of finance leases amounts to DKK 5,002 thousand.

59 ANNUAL REPORT Parent company Note 10 Investments in subsidiaries Opening acquisition value 1,402,869 1,325,310 Additions 15, Exchange rate and other adjustments 56,612 76,739 Closing acquisition value 1,475,349 1,402,869 Opening revaluation value -81, Share of profit for the year 203, ,003 Dividend paid -265, ,059 Amortisation group goodwill -27,395-24,774 Exchange rate and other adjustments 54,787-17,911 Revaluation closing value -114,888-81,012 Book value at 31 December 1,360,461 1,321,857 Specification of Parent Company s shareholdings in group companies % of capital Share capital shareholdings in group companies and votes DKK 1,000 Name and registered office Directly owned Rambøll Danmark A/S, Copenhagen, Denmark ,000 Ramböll Sverige AB, Stockholm, Sweden Rambøll Norge AS, Oslo, Norway 100 3,814 Ramboll Finland Oy, Helsinki, Finland 100 1,789 Rambøll Management Consulting A/S, Copenhagen, Denmark 100 2,500 Ramboll UK Holding Ltd., London, United Kingdom ,986 Rambøll Informatik A/S, Copenhagen, Denmark 100 5,000 UAB Ramboll Lietuva, Vilnius, Lithuania Ramboll Eesti AS, Tallinn, Estonia ZAO Ramboll, St Petersburg, Russia 65 2,208 Ramboll Polska Sp. z o.o., Warsaw, Poland 100 1,880 Ramboll Singapore Pte Ltd., Singapore Ramboll Whitbybird Australia Pty Ltd., Queensland, Australia Ramboll Ireland Ltd., Dublin, Ireland Equity in subsidiaries, DKK 1,007,938 thousand, and booked value of goodwill, DKK 352,523 thousand amount to DKK 1,360,461 thousand.

60 60 FINANCIAL STATUS NOTES (AUDITED) Group Parent company Note 11 Investments in associates and joint ventures Opening acquisition value 11,093 8, Opening adjustment -3, Additions 971 2, Disposals -2, Exchange rate and other adjustments Closing acquisition value 6,322 11, Opening revaluation value 15,003 2, Opening adjustment 3, Profit for the year 21,334 12, Dividend paid -13, Exchange rate and other adjustments 2, Revaluation closing balance 28,822 15, Book value at 31 December 35,144 26, Registered % of capital Equity Profit for the year Associates office and votes DKK thousand DKK thousand L&T Ramboll Consulting Engineers Ltd. India 50 32,290 11,452 ViaNova Systems Danmark A/S Aarhus, DK * 35 1, Odeon A/S Lyngby, DK ** 22 1, Fehily Timoney Ramboll Limited Cork, Ireland *** Georent i Sverige AB Täby, Sweden ** 50 1,772 - Ramboll Italia S.R.L. Italy **** * Annual Report 31 March 2010 has been used. **Annual Reports for 2010 not compiled yet. Annual Report for 2009 has been used. ***Annual Report 30 September 2010 has been used. ****Annual Report for 2010 not compiled yet. As first year as associate no profit is recognised. A list of Joint Ventures can be found on page 65. Group Parent company Note 12 Other investments Opening acquisition value 2,920 6, ,108 Additions 2, Disposals -64-4, ,921 Exchange rate and other adjustment Book value at 31 December 5,816 2,

61 ANNUAL REPORT Group Note 13 Deposits Opening acquisition value 41,113 38,543 Additions 8,043 2,439 Disposals -22, Exchange rate and other adjustments Book value at 31 December 28,103 41,113 Group Note 14 Work in progress Selling price of production at the end of the year 7,969,216 7,177,034 Invoicing on account -7,916,333-7,111,546 Contract work in progress, net 52,883 65,488 Recognised in balance sheet as follows: Contract work in progress 442, ,588 Payments from customers 389, ,100 Note 15 Share capital The share capital of DKK 35,000,000 consists of 350,000 shares with a nominal value of DKK 100 each or multiples thereof. None of the shares carry any special rights. Number of shares 350, , , ,000 35,000 Nominal value ,000 Share capital, DKK thousand 35,000 35,000 35,000 35,000 35,000

62 62 FINANCIAL STATUS NOTES (AUDITED) Note 16 Shareholders equity Share Retained Proposed capital earnings dividend Total Total equity at 1 January , ,364 26, ,614 Exchange rate adjustments related to foreign subsidiaries and associates ,027 Value adjustment of hedging instruments - -5, ,998 Tax effects - 1,700-1,700 Paid dividend ,250-26,250 Proposed dividend - -26,250 26,250 - Profit for the year - 124, ,680 Book value at 31 December ,000 1,009,523 26,250 1,070,773 Exchange rate adjustments related to foreign subsidiaries and associates - 111, ,473 Value adjustment of hedging instruments - -13, ,430 Tax effects - 3,338-3,338 Paid dividend ,250-26,250 Proposed dividend - -26,250 26,250 - Profit for the year - 174, ,690 Book value at 31 December ,000 1,259,344 26,250 1,320,594 Note 17 Provision for pensions A defined benefit plan has been established for most of the Ramboll employees in Sweden, in which pension assets in 2009 have been transferred to a separate pension fund. At the balance sheet date, the value of the pension assets covers the estimated value of the pension liabilities and therefore, a provision has not been included in the balance sheet. Group Parent company Note 18 Long-term liabilities Due 1-5 years 320, , , ,619 Book value 31 December 320, , , ,619 Of which finance leases 8,336 2,

63 ANNUAL REPORT Group Parent company Note 19 Contingent liabilities Pension commitments 1, Surety given, subsidiaries 200, , , ,956 Surety given, others 15,103 12, Performance and payments bonds 163, , Contract sum joint ventures 2,666,878 3,156, Other contingent liabilities 41,921 27, ,088,487 3,455, , ,956 The Group has some lawsuits. Management confirms that they are not expected to have material effects on the Group s financial statements. Group Parent company Note 20 Operational lease obligations Operational lease obligations: Due within 1 year 24,188 20, Due within 1 to 5 years 23,396 15, Rent obligations: Due within 1 year 244, ,656-1,350 Due within 1 to 5 years 778, , Due after 5 years 873, ,

64 64 FINANCIAL STATUS NOTES (AUDITED) Group Parent company Note 21 Auditors fee Fees to auditors Statutory audit: Fees to PricewaterhouseCoopers 3,322 3, Fees to other audit firms Total fees 3,804 3, Other statements with assurance: Fees to PricewaterhouseCoopers Fees to other audit firms Total fees Tax consultancy: Fees to PricewaterhouseCoopers Fees to other audit firms Total fees 1,339 1, Other services: Fees to PricewaterhouseCoopers 1,687 2, Fees to other audit firms 407 1, Total fees 2,094 3, Note 22 Related parties and ownership Transactions Related parties comprise Rambøll Fonden, Board of Directors, Executive Board, Managers and other key employees, subsidiaries and associates. Transactions between related parties have been conducted on commercial terms. Ownership Ramboll Group A/S is controlled by Rambøll Fonden (The Ramboll Foundation), Hannemanns Allé 53, 2300 Copenhagen S, Denmark which owns 96% of the shares. The board of the Ramboll Foundation consists of present and former employees. Employees in Ramboll own the rest of the shares, 4%. Number of shares at 31 December 2010: Owned by the Foundation 335,561 96% Owned by employees 14,439 4% 350,000

65 ANNUAL REPORT Note 23 Financial risk management Liquidity risk At the year end 2010, Ramboll had a strong financial position with a net cash position of DKK 187 million (2009: DKK 108 million), a committed funding facility of DKK 1 billion running until September 2012 and a DKK 100 million overdraft facility. Interest rate risk The Group s debt to credit institutions amounts to DKK 306 million (2009: DKK 263 million) and consists of floating rate bankloans in recognised credit institutions. The interest rate risk policy is to hedge between 30-70% of all Group debt. Hedging maturity is between 2 and 10 years. At the end of 2010, all debt was hedged by interest swap agreements. Currency risk The Group s transaction currency risk exposure is limited by the fact that payments received and made in each country are primarily performed in the same local currency. However, Ramboll is not contracting international projects in which payments are received and made in different currencies. Ramboll s currency risk policy thrives to secure significant amounts in foreign currencies through hedging transactions. In addition to the transaction risk related to international projects, the Group is exposed to risk relating to translation of income statements and equity of foreign subsidiaries into DKK, and intercompany items such as loans, royalties, management fees and interest payments between entities with different functional currencies. Currently, currency exposure on foreign investments and intercompany loans are not hedged. The Group also has a currency risk to the extent that borrowings and interest payments are not denominated in the same currencies as the Group s operating income. Most of the external loans are in DKK to reflect the group s main cash flows. Operating cash is being held mainly in DKK, EUR, SEK, GBP and NOK accounts. All currencies used in more than one territory are collected in cash pools to minimise the overall cost. Credit risk Ramboll aims to limit credit risks by assessing new customers with the Business Integrity Management System (BIMS) and by requiring payments in advance on projects when possible. The Group has methods and procedures to constantly monitor the economic status of projects ensuring adherence to budgets. A quality control system has been implemented to monitor the total project quality from start to completion. Joint Ventures Name, registered office and % of capital and votes Forth Design Joint Venture I/S, Copenhagen, Denmark, 40%. Hydroconseil - Rambøll Danmark I/S, Copenhagen, Denmark, 40%. Joint Venturet Rambøll Atkins, Copenhagen, Denmark, 50%. JV RDK - RRO - Halcrow, Romania, 8%. Rådgivergruppen DNU I/S, Aarhus, Denmark, 17%. Rambøll - Arup - Tec Joint Venture I/S, Copenhagen, Denmark, 50%. Rambøll - Arup - Vectura JV I/S, Copenhagen, Denmark, 44%. Rambøll - Atkins - Emch + Berger - Parsons Joint Venture, Copenhagen, Denmark, 34%. Ramboll - EIR - LDK - EREC Joint Venture, Ukraine, 20%. Ramboll - Eptisa - PM Joint Venture, Croatia, 33%. Ramboll - Fichtner - PM joint Venture, Romania, 23%. Rambøll - Gifford - Grontmij - LAP, England, 40%. Rambøll - Halcrow - Consilier Joint Venture, Romania, 24%. Ramboll - Niras - BT Engineering joint venture, Bulgaria, 33%. Rambøll - Niras - Ecopro, Bulgaria, 50%, Rambøll Arup Joint Venture, Copenhagen, Denmark, 75%. RBD- Group, Copenhagen, Denmark, 50% Consortium Ecostiler, Netherlands, 3%. JV Krasto Projekttal/Ramboll/Haskoning, Lithuania, 28%. Consortium Aqua BG Blagoevgrad, Allerød, Denmark, 19%. Infobiz, Ramboll Proline Joint Venture, Turkey, 17%. Safege Ramboll Eptisa PM Joint venture, Belgium, 20%. Pohl Ramboll Joint Venture Germany, 10%. Niras Bora, Ramboll, Safege, Siat Joint Venture, Bulgaria, 18%. Mott MacDonald Ramboll TEC Ostc Milleu Joint Venture, England, 22%. Ramboll Hydroconseil, Mali, 40%.

66 66 FINANCIAL STATUS MANAGEMENT S STATEMENT AND INDEPENDENT AUDITOR S REPORT (AUDITED) MANAGEMENT S STATEMENT ON THE ANNUAL REPORT As Group Executives and Board of Directors of Ramboll Group A/S we have today appraised and approved the Annual Report for the financial year The Annual Report has been prepared in accordance with the Danish Financial Statements Act. We consider the accounting policies applied appropriate and the accounting estimates made reasonable. In our opinion, the Consolidated Financial Statements and the Financial Statements for the Parent Company give a true and fair view of the financial position at 31 December 2010 of the Group and the Parent Company and of the results of the Group and Parent Company operations and Group s consolidated cash flows for the financial year 1 January December Executive Board Flemming Bligaard Pedersen, Chief Executive Officer Michael Rosenvold, Chief Financial Officer Knut Akselvoll, Group Executive Director, Country Units Søren Holm Johansen, Group Executive Director, Service Areas and Global Practices Board of Directors Peter Højland, Chairman Niels de Coninck-Smith Sten Scheibye Øyvind Isaksen Per Nielsen Flemming Koch Steen Nørbæk Madsen Mette Thiel In our opinion, the Directors Report includes a true and fair account of the development in the operations and financial circumstances of the Group and the Parent Company, of the results for the year and of the financial position of the Group and the Parent Company as well as a description of the most significant risks and elements of uncertainty facing the Group and the Company. We recommend the Annual Report to be adopted and endorsed at the Annual General Meeting. Copenhagen, 2 March 2011

67 ANNUAL REPORT INDEPENDENT AUDITOR S REPORT To the Shareholders of Ramboll Group A/S We have audited the Financial Statements and the Consolidated Financial Statements of Ramboll Group A/S for the financial year 1 January December The Financial Statements and the Consolidated Financial Statements comprise Income Statement, Balance Sheet, Notes and Accounting Policies. Furthermore, the Consolidated Financial Statements comprise Cash Flow Statement. The Financial Statements and the Consolidated Financial Statements are prepared in accordance with the Danish Financial Statements Act. Directors Report, which is not comprised by the audit, is prepared in accordance with the Danish Financial Statements Act. Management s Responsibility Management is responsible for the preparation and fair presentation of the Financial Statements and the Consolidated Financial Statements in accordance with the Danish Financial Statements Act. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of Financial Statements and Consolidated Financial Statements that are free from material misstatement, whether due to fraud or error. The responsibility also includes selecting and applying appropriate accounting policies, and making accounting estimates that are reasonable in the circumstances. Furthermore, Management is responsible for preparing a Directors Report that includes a true and fair account in accordance with the Danish Financial Statements Act. Auditor s Responsibility and Basis of Opinion Our responsibility is to express an opinion on the Financial Statements and the Consolidated Financial Statements based on our audit. We conducted our audit in accordance with Danish Auditing Standards. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the Financial Statements and the Consolidated Financial Statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Financial Statements and the Consolidated Financial Statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the Financial Statements and the Consolidated Financial Statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company s preparation and fair presentation of the Financial Statements and the Consolidated Financial Statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by Management, as well as evaluating the overall presentation of the Financial Statements, the Consolidated Financial Statements and Directors Report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Our audit has not resulted in any qualification. Opinion In our opinion, the Financial Statements and the Consolidated Financial Statements give a true and fair view of the financial position of the Company and the Group at 31 December 2010 and of the results of the Company and the Group operations and the Group s cash flows for the financial year 1 January December 2010 in accordance with the Danish Financial Statements Act. Statement on Directors Report We have read Directors Report in accordance with the Danish Financial Statements Act. We have not performed any procedures additional to the audit performed of the Financial Statements and the Consolidated Financial Statements. On this basis, in our opinion, the information provided in Directors Report is in accordance with the Financial Statements and the Consolidated Financial Statements. Copenhagen, 2 March 2011 PricewaterhouseCoopers Statsautoriseret Revisionsaktieselskab Jesper Edelbo State Authorised Public Accountant Bo Schou-Jacobsen State Authorised Public Accountant

68 68 FINANCIAL STATUS BOARD OF DIRECTORS AND EXECUTIVE BOARD BOARD OF DIRECTORS NON-EXECUTIVE DIRECTORS Standing (from left): Øyvind Isaksen Peter Højland, Chairman Per Nielsen Steen Nørbæk Madsen Seated (from left): Sten Scheibye Niels de Coninck-Smith Mette Thiel Flemming Koch PETER HØJLAND, BSc in International Business, Chairman, Chairman of the boards of, Bikuben Fondene, Copenhagen Capacity - Fonden til Markedsføring og Erhvervsfremme i Hovedstadsregionen, Soldaterlegatet and Siemens A/S, on the boards of Danske Bank A/S, Frederiksbergfonden, Danish Trade Council and The Denmark-America Foundation, FUHU, Markedsføringsfonden for Danmark and Nordic Vision Clinics AS. STEN SCHEIBYE, (MSc, PhD, B.Comm.), Chairman of the boards of Novo Nordisk A/S, Technical University of Denmark (DTU), Danish Trade Council and The Denmark-America Foundation. Vice Chairman of the board of the Danish Fulbright Commision. Member of the boards of Danske Bank A/S, DADES A/S, Gambro AB, The Danish Industry Foundation, The Aase og Ejnar Danielsen Foundation, Soldaterlegatet and The Danish Academy of Technical Sciences. Chairman of The Danish committee on Corporate Governance and advisor to Investor AB. NIELS DE CONINCK-SMITH, MSc and MBA, on the boards of Ferrosan Holding A/S, Orifarm A/S, Dovista A/S, Encase Limited, Decon Advisory Limited and Nordic Aviation Capital A/S. ØYVIND ISAKSEN, MSc. (PhD), President and CEO of Q-Free ASA, Chairman of the Board of EPSIS AS PER NIELSEN, MSc (Eng), on the boards of Infobric AB, Waterjet AB, European International Contractors EIC, Swedish Society of Civil and Structural Engineers (SvR), Hercules Grundläggning AB and Swedish Association for Foundation Engineering (SAFE). METTE THIEL, MSc, PhD (Struct. Eng)*, Senior Project Director, Rambøll Danmark A/S, on the board of Fyns Stiftstidende. FLEMMING KOCH, BSc (Eng)*, Project Director, Rambøll Danmark A/S. STEEN NØRBÆK MADSEN, BSc (Eng)*, Head of Department, Rambøll Danmark A/S, employee representative at the board in Rambøll Danmark A/S. *Elected by the employees

69 ANNUAL REPORT EXECUTIVE BOARD EXECUTIVE DIRECTORS From left: Michael Rosenvold Flemming Bligaard Pedersen Knut Akselvoll Søren Holm Johansen FLEMMING BLIGAARD PEDERSEN MSc (Civil & Struct. Eng), PhD (Struct. dynamics) Managing Director and Chief Executive Officer, Ramboll Group A/S Member of the Permanent Committee on Business Policies of the Confederation of Danish Industry SØREN HOLM JOHANSEN MSc (Econ) Executive Director, Service Areas and Global Practices, Ramboll Group A/S Member of Central Board and member of Board of Directors of Association of the Confederation of Danish Industry. On the board of Federation of Danish Knowledge Advisors KNUT AKSELVOLL MSc (Mech. Eng.), PhD (Mech. Eng.) Executive Director, Country Units, Ramboll Group A/S MICHAEL ROSENVOLD MSc (Business Economics and Auditing) Chief Financial Officer, Ramboll Group A/S Member of the board of Scandinavian Property Fund Copenhagen P/S