terma a/s annual report 2008/096 annual report 2008/09 sales for the fiscal year were mdkk 1,058...

Terma A/S Annual Report 2008/09

Annual Report 2008/09

© Terma 2009Production idworks a/sImages David Bering; Niels Åge Skovbo; ESA (page 14, top/right: ESA – D. Ducros, 2009 / page 15, bottom/right: ESA); Lockheed Martin; and TermaPrinting Zeuner Grafisk as

Contents

4 Financial Highlights – Consolidated

5 Highlights of the Year

6 Management’s Review 2008/09

11 Group Management

12 Business Areas

15 International Group Locations

16 Accounting Policies

20 Executive Management’s Statement

20 Independent Auditors’ Report

21 Statement of Income

22 Balance Sheet – Assets

23 Balance Sheet – Equity and Liabilities

24 Cash Flow Statement

25 Notes

Board of DirectorsSvend-Aage Nielsen, ChairmanHolger Lavesen, Deputy ChairmanHenrik StenbjerrePeter DyvigBo LaursenPaul-Werner Johnsen

Executive ManagementJens Maaløe, President & CEO

BankersDanske Bank Holmens Kanal 2–12 1092 København K Denmark

OwnersThrige Holding A/S Copenhagen

AuditorsKPMG Statsautoriseret Revisionspartnerselskab

Flemming Brokhattingen State-Authorized Public Accountant

Jes Lauritzen State-Authorized Public Accountant

Værkmestergade 258000 Århus C Denmark

4 Annual Report 2008/09

DKK million 2008/09 2007/08 2006/07 2005/06 2004/05

Order intake 1,194 1,438 957 1,011 1,136

Order book, year-end 1,866 1,730 1,331 1,379 1,369

Sales 1,058 1,039 1,005 1,001 1,214

Operating profit 74 115 96 89 100

Financial items (14) (19) (15) (15) (18)

Profit for the year 42 84 53 53 57

Non-current assets 596 506 455 440 441

Current assets 742 640 561 477 563

Assets, total 1,339 1,146 1,016 917 1,004

Capital stock 18 20 20 20 20

Equity 375 441 366 346 339

Allowances 100 89 69 44 35

Long-term liabilities other than allowances 207 188 144 148 169

Current liabilities other than allowances 658 429 437 379 460

Cash flows from operating activities 101 157 94 97 129

Cash flows from investing activities (219) (117) (83) (38) (89)

Portion relating to investments in property, plant, and equipment (70) (28) (33) (21) (54)

Cash flows from financing activities (2) 20 (57) (39) (9)

Cash flows, total (120) 59 (47) 20 31

Financial ratios

Net profit ratio 7.0 11.1 9.5 8.0 8.2

Return on investments 6.1 11.6 10.9 9.2 9.4

Current ratio 113 149 128 126 122

Equity ratio 28.0 38.4 36.0 37.7 33.8

Return on equity 10.2 20.8 14.8 15.4 17.4

Average number of full-time employees 1,183 1,020 965 1,014 1,034

*Disposalofproperty,land,andequipmentforthefiscalyear2005/2006isnotincluded.

Net profit ratio

=

Return on investments =

Operating assets

= Total assets less cash and cash equivalents, other interest-bearing assets (including stock), and equity interest in affiliated companies

Operating profit* x 100Sales

Operating profit* x 100Average operating assets

Current ratio =

Equity ratio =

Profit/loss for analytical purposes = Profit for the year

Return on equity =Result for analytical purposes x 100Average equity, ex minority interests

Current assets x 100Current liabilities other than allowances

Equity, ex minority interest at year-end x 100Total liabilities at year-end

Definitions:

Financial Highlights – Consolidated

Financial Highlights – Consolidated

Annual Report 2008/09 5

March 2008 ESA launched the first Automated Transfer Vehicle (ATV) for the International Space Station (ISS). Terma has been involved in the definition of the ATV program test facilities and was contracted to develop major parts of the simulator and the simulation platform. March 2008 Terma agreed with the Danish Defence Acquisition and Logistics Organization on production and delivery of 3-D Audio and Active Noise Reduction for the Danish F-16s. The systems will significantly improve pilot working conditions regarding threat direction, communication, and noise level in the cockpit. April 2008 The Airborne Systems Business Area of Terma North America Inc. was awarded a multi-year contract by the U.S. Air Force with a potential value of more than MDKK 100 for the repair and service of AN/ALQ-213(V) replaceable units. May 2008 Within a very short time span, Airborne Systems and Aerostructures developed a self-protection solution in collaboration with BAE Systems for the Royal Air Force Harrier fighter aircraft. The first test flight was implemented successfully in May 2008. August 2008 The Danish flexible support ship ABSALON set course for the Horn of Africa. Prior to this, Terma was highly committed to optimizing the systems and equipment delivered for the vessel, including self-protection systems, the SCANTER 2001 surface surveillance radar, and the C-Flex command and control system. August 2008 Terma’s 3-D Audio System was nominated for the prestigious product award by the Confederation of Danish Industries. September 2008 Terma and Boeing Company signed a Memorandum of Understanding as the initial step towards a collaboration related to Boeing’s participation in the competition to provide new fighter aircraft to Denmark. In addition, a number of business opportunities have been identified within the Aerostructures and Airborne Systems Business Areas. December 2008 Terma signed a contract for the prestigious airport project New Doha International Airport. Terma will be delivering the information system ATC*ISS and the new Flex platform (ATIS + DataLink). January 2009 In 2009, Terma celebrates the 25th anniversary of our electronic warfare (EW) business. The delivery in 1984 of the first EW equipment to the Royal Danish Air Force laid the foundation for a successful, MDKK three-digit business which includes Terma EW equipment installed in more than 1,700 fighters, transport aircraft, and helicopters worldwide. February 2009 The Danish Ørsted satellite celebrated its ten-year space anniversary. Terma was heavily involved in the development and production of the satellite which was awarded an honourable fourth place by the Danish Society of Engineers in the competition for “The 20th century’s greatest Danish technical achievement”. February 2009 Terma entered into a contract with Lockheed Martin for the delivery of composite components for the initial production phase of the F-35. The contract includes composite structures for the horizontal part of the aircraft stabilizers.

Highlights of the Year

Highlights of the Year


Sales for the fiscal year were MDKK 1,058 with a profit before tax of MDKK 60 – a sales level and result below expectations. The decrease in sales and profit was primarily caused by delays in order intake in the Radar Systems Business Area. Compared to the other Terma Business Areas, Radar Systems generates rapid sales revenue. Further, the high level of expenses in the Aerostructures Business Area required for the preparation for participation in the F-35 program also had an adverse effect on the profit for the year.

With an order intake of MDKK 1,194 and a substantial order book at year-end of MDKK 1,866, Terma has a strengthened foundation for the business development in the years to come.

Our activities in the U.S., The Netherlands, and Singapore continue to expand, reflecting the importance of being close to customers and strategic partners. Terma North America Inc. contributed by securing important strategic contracts within several of our Business Areas. Terma has strengthened its position further in the North American market with the expansion of the electronic warfare (EW) maintenance business in Warner Robins, Georgia and the establishment of new facilities in Fort Worth, Texas (Aerostructures) and Norfolk, Virginia (Radar Systems). Establishment of a maintenance center at the Royal Netherlands Air Force base in Woensdrecht, similar to the activities in Warner Robins, has been approved by the Dutch authorities and is expected to be established in 2009. In Singapore, where Terma established a facility in 2007, there has been a high activity level with new Radar Systems contracts and service agreements.

During the fiscal year, total staff increased from 1,150 to 1,293.

Extensive investments in the F-35 program within Aerostructures and a number of strategic production development activities place heavy demands on the liquidity in our ongoing business. This demand is further influenced by the financial crisis being experienced by our customers and suppliers. No significant credit risks exist relative to individual customers, but there may be business risks attached to sub-suppliers struck by the financial crisis. Terma keeps in close contact with its sub-suppliers and will follow the

situation in order to secure second-source suppliers of critical components.

Targeted investments in recent years in product and market development, combined with strong performance and high-quality products and projects, have resulted in several valuable and strategic contracts.

The Aerostructures Business Area delivered the first products and components for the new U.S. fighter aircraft F-35 and secured contracts for the next phase of initial production. The unique competencies and specialized knowledge acquired via our collaboration with Lockheed Martin and Northrop Grumman in this international, important program will be further strengthened, and our production capacity will be further expanded through an extensive investment program.

The Airborne Systems Business Area experienced a breakthrough in sales and integration of advanced self-protection equipment for various types of aircraft in an additional important European market. Further, the Business Area secured the first and crucial production contract for 3-D Audio technology for the Royal Danish Air Force. This occurred in the year celebrating the 25th anniversary of the first delivery of self-protection equipment.

The Integrated Systems Business Area delivered the first operable control room as part of the contract with the Danish state for the supply of control room software for the future nationwide emergency preparedness network, SINE.

A number of new markets with significant business potential are currently being cultivated. In Eastern Europe, the first results have been achieved, and we expect to enter into additional contracts in 2009. This potential is expected to develop further in the coming years and is also applicable to India and a number of countries in Asia.

The year has been characterized by two distinctly different situations. During the first half of the fiscal year, the high activity levels of the previous year continued in all Business Areas and in the essential markets. During the fall, an initial market slowdown was observed with regard to the placement of orders. We expect this slowdown to be a consequence of the

Management’s Review 2008/09

For Terma, 2008/09 was characterized by high activity levels and significant investments in production facilities, competen-cies, and technologies and in business development. However, a number of external circumstances in connection with the international financial crisis affected the overall 2008/09 result. The turbulent financial markets resulted in a general market slowdown with consequential delays in order intake.




international financial crisis which has lead to a higher degree of unpredictability than experienced historically.

The commitment and efforts of our employees are outstanding, and the Board of Directors and the Group Management are greatly appreciative.

Results for 2008/09

The year’s intake of orders was MDKK 1,194 as compared to MDKK 1,438 in 2007/08. Order book at year-end was MDKK 1,866 as compared to MDKK 1,730 for 2007/08.

Sales for the fiscal year were MDKK 1,058, an increase of MDKK 19 compared to the year before. The profit before tax amounted to MDKK 60, which is below expectations and below the 2007/08 level of MDKK 96.

As a consequence of the order intake slowdown since September 2008, sales did not reach the expected level. The decrease in sales, which occurred primarily in Radar Systems, lead to a decrease in profits, and this could only be compensated for partially with an expense reduction.

Further, the result was adversely affected by investments in competencies and capacity in Aerostructures which were implemented to fulfill the requirements for participation in the F-35 program. Within three to four years, Terma must have the capability to produce parts for this program at the rate of one aircraft per workday. Therefore, the investment program must be implemented now. Further, an extraordinary amortization of MDKK 9 was incurred in a technological development project which proved technically more complex than first predicted.

The Balance Sheet is marked by the high activity level required for the development of new products in all six Business Areas, establishment of the F-35 production capability, and the build-up of inventories for new projects.

At the 2007/08 general meeting, a decision was made to reduce the capital stock by MDKK 2 through annulment of Terma’s own stockholding. The equity has been reduced by the value of own stock of MDKK 75, and the stock annulment therefore has no effect on the result of the year.

The Board of Directors proposes a dividend payment of MDKK 20.

Outlook for the 2009/10 Fiscal Year

Order intake, sales, and result for 2009/10 are expected to equal the levels in 2008/09. In the long term, developments within Terma’s primary markets are estimated to be positive. However, the extent of the current global recession and the continued market slowdown worldwide are expected to cause postponement of projects in the coming year.

In addition to the investment program initiated at the Grenaa

plant (Aerostructures), Terma will continue to invest in product development projects in the other five Business Areas.

An order book totaling MDKK 1,866 at the beginning of 2009/10 constitutes a solid foundation for activities during the year and provides for a sound planning horizon.

Terma’s Business Areas

During the 2008/09 fiscal year, Terma continued its focus on the further development of the five Business Areas and the establishment of Electronic Manufacturing at Lystrup as a new, independent Business Area. The six Business Areas are:

1. Aerostructures: Development and production of advanced structures and engine components for defense and non-defense aircraft and helicopters

2. Airborne Systems: Self-protection equipment for fighter aircraft, transport aircraft, and helicopters

3. Integrated Systems: Command and control systems for defense and non-defense applications

4. Radar Systems: Advanced radar systems for coastal surveillance and surveillance of airports

5. Space: Mission-critical products, software, and services for space applications

6 . Electronic Manufacturing: Production of electronics utilizing advanced manufacturing technologies.

Further, Terma has subsidiaries and facilities in the U.S., The Netherlands, Germany, and Singapore.

International Growth Potential

In 2008/09, 90 % of Terma’s order intake came from international customers. Terma’s future growth potential is anticipated primarily in applicable markets in Europe and the U.S. as well as in Asia and the Middle East.

A number of countries’ participation in international operations necessitates the upgrading of existing materiel and development of new solutions. This results in a major interest in Terma products and systems such as electronic self-protection and command, control, and communication systems (C3i) for army and navy applications. Terma’s demonstrated flexibility and ability to rapidly undertake and implement projects are important assets in realizing the potential present in these markets.

Denmark’s entry into the European Space Agency (ESA) program ELIPS – European Program for Life and Physical Sciences – has paved the way for development of “The Atmosphere Space Interactions Monitor” (ASIM), which is to be placed at the


International Space Station (ISS). This project was made possible

by extra funding for Danish space research and the Danish

space industry via the Danish Finance and Appropriation Act for

2009. Terma has undertaken project management of the project

with participation by Norway and Spain. ASIM will be the most

important Danish involvement in space since the Ørsted satellite.

The purpose of the project is to improve meteorological climate

models. In that light, ASIM is also valuable for Denmark who

will host the United Nations Climate Change Conference in 2009.

Replacement Aircraft

A conclusive decision by the Danish Parliament as to down

selection of a new fighter aircraft for the Royal Danish Air Force

is expected during 2009. The decision is very important for the

future development of Terma and, in particular, the Aerostructures

Business Area. During the last ten years, Terma has followed

the situation closely and has entered into agreements with the

potential suppliers, i.e. Lockheed Martin (F-35), Saab (Gripen Next

Generation), and Boeing (F-18 Super Hornet).

For a number of years, Terma has entered into framework

agreements and contracts for F-35 development and production

with Lockheed Martin and some of that Company’s key

collaboration partners.

The F-35 development and production programs include

advanced materiel and production technologies which are

strategically important for Terma’s future development and

growth opportunities.

Involvement in the F-35 program has an aggregate potential

value of DKK two-digit billion of which the contracts and

agreements already entered into are expected to generate sales

of DKK 6-7 billion up to 2020.

In December 2007, Terma and Saab/Gripen entered into a

significant cooperation agreement with a business potential

valued at approximately DKK 10 billion over a period of

10-15 years, subject to Gripen being selected as Denmark’s

replacement fighter aircraft.

In March 2009, Terma and Boeing entered into a comprehensive

Memorandum of Understanding. The agreement states that

Boeing commits itself to place a minimum of 30 % of the new

fighter aircraft acquisition cost in Terma if Denmark selects

the F-18 Super Hornet. Further, the agreement provides

opportunities for further collaboration with several Terma

Business Areas, such as self-protection systems for a number of

Boeing’s aircraft platforms and aerostructures for civil aircraft.

The agreements with Saab and Boeing respectively are based

on industrial cooperation agreements (offset) and will take

effect once Denmark makes a fighter aircraft acquisition,

expected to occur from 2015 onward.

Homeland Security

Homeland security is a growth market for Terma, and the major continuing interest lies in radar equipment for coastal surveillance.

Terma’s contract for control room software for the future Danish emergency preparedness network creates further opportunities for global business development within this market segment.

Activities within the Business Areas

The following presents a brief review of the business development and the strategic initiatives within the individual Business Areas and within subsidiaries and facilities worldwide.

Aerostructures

The Aerostructures Business Area is currently expanding and optimizing the manufacturing facilities at Grenaa, aiming to gradually increase the manufacturing capacity to supply aerostructures for one aircraft per workday from 2012 and on. These efforts take place in close collaboration with our F-35 partners, in particular Lockheed Martin and Northrop Grumman. Both companies have employees on-site at Grenaa.

In January 2009, Aerostructures entered into a contract with Lockheed Martin for the supply of Conventional Edges for the F-35 aircraft Horizontal Stabilizer.

Further, the F-35 contracts include: Test Pods for Lockheed Martin, Pylons for Marvin Engineering Company, Gun Pods for General Dynamics, structures for the center fuselage for Northrop Grumman, Horizontal Stabilizer for BAE Systems, and engine components for Rolls-Royce. Production has been initiated and the first parts have been delivered for all of these programs. The F-35 programs will constitute a continuously increasing share of the Aerostructures activities.

The other activities in Aerostructures, including design and production of Pods and Pylons for the Airborne Systems Business Area, helicopter roof sections for the AgustaWestland EH101, and winglets for the Gulfstream business jet, will continue to be ongoing.

Airborne Systems

The Airborne Systems Business Area has achieved a unique global position within development and integration of self-protection systems for aircraft and helicopters. The solution is based on an advanced self-protection system which is independent of aircraft type.

As a result of Terma’s long-standing collaboration with the U.S. Air Force and the U.S. Air National Guard within the electronic warfare (EW) business segment, Terma systems are installed on more than 1,000 U.S. fighter aircraft. Relations have been




further strengthened with upgrades of U.S. Air Force EW systems (the ALQ 213 Advanced Processor Upgrade Program) and by a multi-year framework contract for EW repair and service with the U.S. National Guard.

The Royal Air Force has installed Terma’s self-protection systems on three aircraft platforms: Nimrod, Harrier, and Tornado. Further, the German Air Force has decided to install similar systems on their Tornado fighter aircraft. Thereby, the Business Area has successfully migrated these solutions, originally developed for the F-16, to other types of fighter aircraft.

The Royal Netherlands Air Force is currently acquiring the new generation CH-47F Chinook helicopter. Terma is developing the next generation of electronic self-protection systems (ALQ-213A) for use in these helicopters.

The Royal Danish Air Force is currently updating the self-protection systems in its F-16 fighter aircraft. The update includes Terma’s 3-D Audio technology which will also be installed and demonstrated on U.S. helicopters.

Terma supplies EW systems for the U.S. Navy patrol aircraft P-8A (Multi-Mission Maritime Aircraft). A similar solution has been selected for the Korean E-737 and the Indian P-8I programs.

Within electronics manufacturing, Terma secured contracts for F-35 radar modules and advanced aircraft harnesses. A significant business potential is expected in the coming years in concert with the increased F-35 production.

Integrated Systems

In 2008, the Integrated Systems Business Area experienced a heightened international interest in its command and control system platform T-Core. This resulted in a number of orders and cooperation agreements with shipyards and suppliers of aircraft and vehicles, major systems integrators, and end-user customers within defense and national safety markets.

Integrated Systems established strategic partnerships with technology suppliers and is thereby able to offer extensive, complete solutions based on T-Core for defense and national emergency services (police, fire departments, ambulance services, etc.) as well as civil and military air traffic control.

During the past year, the Business Area launched systems product packages based on the T-Core technology for small naval vessels and coast guards; these included systems for Ocean Patrol Vessels and vessels intended to operate in littoral waters. Mobile systems solutions were launched for army (BMS-flex), navy (C-Raid), air force (Air-flex), and for the non-defense segment (t.react) for police, fire departments, and ambulance services.

The Service Business Unit within the Integrated Systems Business Area performs tasks for all of Terma’s Business

Areas by assisting with systems installation, establishment of technical solutions, service and maintenance, logistics, and training. Tasks are not limited to products and solutions supplied by Terma, but may in principal include all types of systems for defense purposes and for other customers with mission-critical solutions.

Radar Systems

The Radar Systems Business Area continues to hold a strong market position. However, due to the worldwide financial crisis during the second half of 2008, activities were affected by delays in order intake in several naval and coastal surveillance projects. Nevertheless, the sale of radar systems for the surveillance of on-ground airport traffic reached an all-time high, primarily as a result of orders for a number of airports in India and Turkey.

With deliveries initiated for a major coastal surveillance project and several orders for various surveillance purposes in the Middle East, Terma consolidated its leading position in a region with a strong potential.

In 2008/09, the major part of the Danish coastal radar system (KYRA) was put into operation. Terma’s contribution is 25 radar sensors for surface surveillance (SCANTER 2001) and combined surface and air surveillance (SCANTER 4000).

At the end of 2008, the Royal Navy approved the first naval SCANTER 4100 for operative use.

Space

The corner stone in Terma’s space activities is the ESA market. This is also expected in the years to come. Further, the Space Business Area is project manager of the international research project “The Atmosphere Space Interactions Monitor” (ASIM), a program which will observe the atmosphere from the International Space Station (ISS) to improve our understanding of the Earth’s climate and its changes.

Outside ESA, Space targets three new markets with growth opportunities:

1. Galileo FOC, Europe’s global navigation satellite system which is a joint EU-ESA project

2. Small Geo, development of a small telecommunications platform for the commercial space market

3. The U.S. space market which is significantly larger than the European space market.

Electronic Manufacturing

The Business Area which received independent status in 2008 continued the development and build-up of manufacturing

Management’s Review 2008/09 and Group Management

capabilities required for the implementation of the projected programs in Terma’s other Business Areas.

The planned development of Surface Mount Technology (SMT) production is nearly complete, including investment in new manufacturing technologies. This area is now geared to handle automatic printed circuit board assembly for the Galileo program and for F-35 electronic modules. Further development of capabilities and capacity for Galileo and the F-35 programs will continue in 2009.

Targeted to streamline and enhance the efficiency of supply chains, a number of activities driven by the Electronic Manufacturing lean program were completed in 2008. These activities will continue in 2009.

Terma North America Inc.

Terma North America Inc. continued to grow substantially during the past year. In particular, the Airborne Systems Business Area of Terma North America Inc. experienced a high growth rate with expansion of the EW maintenance business in Warner Robins, Georgia and several new EW contracts with Boeing and Lockheed Martin. Most of these contracts were enabled by Terma’s local presence and U.S. security clearance.

Terma North America Inc. opened a new engineering facility in Fort Worth, Texas this past year. This facility gives a very important presence near the Lockheed Martin plant responsible for the production of the F-35 fighter aircraft. Our staff of engineers in Fort Worth will work closely with Lockheed Martin and the Aerostructures Business Area in support of substantial opportunities associated with the F-35 Joint Strike Fighter program.

Terma North America Inc. also established a Radar Systems installation and service facility in Norfolk, Virginia.

Terma B.V.

Terma B.V. in The Netherlands continued its activities within the Space Business Area, successfully executing a series of ESA projects both in-house and at ESA sites.

The necessary agreements for an Electronic Warfare Competence Center facility operating at the Royal Netherlands Air Force base in Woensdrecht have been secured.

An Attractive Workplace

At the end of the fiscal year, total staff had increased to 1,293. The extensive recruitment primarily took place in Denmark- and U.S.-based locations. These additions to the Terma workforce were based on intake of orders, expectations of continued growth, and the increased competence requirements in several Business Areas.

Within recent years, Denmark has experienced a heavy demand for skilled employees and thus a sharpened competition to attract new employees. Nevertheless, Terma succeeded in recruiting a large number of new employees in 2008. A contributory factor was potential employees’ knowledge of Terma as an attractive workplace with excellent opportunities for personal and professional development. Terma’s workforce is loyal and stable.

Total staff is expected to remain essentially unchanged in the year to come.

Birthe H. Rask Executive Vice President

& CFO

Jens Maaløe President & CEO

Morten Halskov

Executive Vice President, Corporate Services



The Aerostructures Business Area specializes in the design and

manufacture of advanced structural parts for the defense and non-

defense aerospace markets, including products for the F-35 and the

F-16 fighter aircraft, the EH101 transport and Search and Rescue

(SAR) helicopter, as well as the Gulfstream business jet.

The F-35 Joint Strike Fighter is a top priority program. Since the

Company’s first involvement in the program in 2004, Terma has

secured contracts for seven different components, and the first

Low Rate Initial Production (LRIP) products have been delivered.

Terma continues to develop critical competencies and skills for

the design and manufacture of high quality, complex, and price

competitive composite structures for the F-35 program.

In the year to come, Terma will continue to make significant

investments to upgrade our manufacturing capabilities and

infrastructure to meet the demanding technology and delivery

requirements of the F-35 program.

The Aerostructures Engine Components Business Unit has

successfully designed and manufactured the first Stator Vanes

for one of the F-35 engine manufacturers. This is another

breakthrough, and it will provide the basis for additional business

within a booming market for sophisticated design and manufacture

of composite products for high performance commercial and fighter

aircraft engines.

Aerostructures continuously strives to deliver high quality products

for our long-standing customer base as well as for new customers.

In 2008, Aerostructures established a facility in Fort Worth, Texas,

USA. This organization will focus on business development and

the expansion of our design and engineering capabilities. The local

organization provides good access to key customers in the U.S. and

facilitates the attraction of highly skilled engineers with aerospace

experience.

The Airborne Systems Business Area is a recognized supplier of

defense electronics solutions and related services for aircraft

within the electronic warfare (EW), tactical reconnaissance, and

electronics manufacturing markets worldwide. A strong market

demand continues to prevail for the self-protection systems used

in fighters, transport aircraft, and helicopters. These systems

are based on Terma’s AN/ALQ-213. To date, this system has been

installed in more than 1,700 aircraft worldwide. Recently, self-

protection systems have been provided for the Royal Air Force

Nimrod, Harrier, and Tornado aircraft and the German Air Force

Tornado aircraft.

The Royal Netherlands Air Force is in the process of acquiring CH-47F

Chinook helicopters. In collaboration with Boeing, Terma is supplying

the Chinook Aircraft Survivability Equipment (CHASE) solution

including the next generation EW controller product – the ALQ-213A.

Together with EADS and in collaboration with the Royal Danish Air

Force, Terma is developing a unique missile warning system for the

F-16 aircraft. The solution includes the 3-D/Active Noise Reduction

Audio System which has now entered production following

successful, extensive tests and evaluations. Supported by Lockheed

Martin, this solution is being demonstrated to F-16 customers

worldwide.

Together with Northrop Grumman, Terma has delivered EW

equipment for the Boeing P-8A Multi-Mission Maritime Aircraft

which has been selected by the U.S. Navy as its long-range anti-

submarine warfare, anti-surface warfare, intelligence, surveillance,

and reconnaissance aircraft. Similar solutions are provided for the

Korean E-737 and the Indian P-8I programs.

A number of electronics manufacturing agreements have been

secured in support of the F-35 Joint Strike Fighter program. To

better serve our U.S. customers, the facility in Warner Robins,

Georgia has been expanded to include additional capabilities for

software development, systems integration, integration testing,

and repair services.

Erik Laursen Senior Vice President

Steen M. Lynenskjold Senior Vice President

Airborne Systems

Aerostructures

Business Areas


Integrated Systems

The Integrated Systems Business Area delivers command and control

systems integrated with sensors, effectors, and communication

infrastructure and based on Terma’s T-Core technology. These

systems provide situational awareness and control capability for

both defense and non-defense applications. The Royal Danish Navy’s

flexible support ships and inspection vessels are equipped with the

naval T-Core version C-Flex. An up-scaled C-Flex system will be

installed in the new Danish AAW frigates.

The Link 11 version of T-Core for the Romanian Navy was upgraded

to a full combat management system with integration of the

existing sensors and weapons. An airborne version was contracted

for the maritime helicopters, demonstrating the wide range of

solutions provided by these advanced systems.

The Austrian Army was the first international customer for the

army T-Core version CWS-Flex (Control and Warning System)

for its air defense system upgrade. The T-Core army battle

management system BMS-Flex was launched with full

communication infrastructure for multiple, concurrent radio

platforms.

A flight information management system was delivered to Naviair,

the Danish aviation network service provider, together with a new

radar data processing backup system. A similar information system

was delivered to the National Air Traffic Services (NATS) in the

UK and is now standardized as the information system for NATS-

operated airports in the UK.

In 2008, the public safety and emergency T-Core version t.react

was supplied by Terma as the command and control information

infrastructure for the Danish national emergency services. The

contract includes a long-term 24/7 operation and maintenance

services contract.

Common to the defense and homeland security application suites

is the fact that they can share data and are scalable “plug-and-

play” systems with open software interfaces allowing for further

additions of subsystems and external interfaces.

The Radar Systems Business Area designs, manufactures, and

delivers advanced ground-based, naval, and airborne radar systems

for the surveillance of coasts, ports, territorial waters, and traffic

control in ports, waterways, and airports for customers worldwide.

The international focus on terror, illegal immigrants, weapons, and

drug trafficking means growing demands for the surveillance of

coasts, ports, and territorial waters.

The SCANTER radar systems are renowned for their unique capability

to detect small and minute targets at long distances and under

all weather conditions, making these radars the preferred choice

for mission-critical border security and traffic safety applications.

The SCANTER radar product line comprises the SCANTER 2001i,

SCANTER 4000, and 4100, as well as a wide range of high

performance antennas.

In 2008/09, the activity level was influenced by the postponement of

several expected contracts for coastal and naval surveillance. Despite

global financial conditions, many coastal surveillance systems and

naval construction programs are currently being planned, and the

markets are therefore expected to grow significantly in future years.

Terma’s success in the Mediterranean was continued with additional

orders for maritime applications in Spain and Italy as well as a

contract for radars for a nationwide Vessel Traffic Monitoring and

Information System (VTMIS) for Croatia.

The airport surface movement business was exceptionally strong

with new orders for airports in twelve countries in Europe, the Middle

East, and Asia, including our first orders for airports in Greece and

Turkey.

Radar Systems continues its commitment to provide in-region service

and support to customers around the globe. In 2008/09, the regional

presence was expanded with the opening of a facility in Norfolk,

Virginia, USA, which will provide service and support to North

American and Latin American customers.

Morten Winterberg Senior Vice President

Peter Deichmann Senior Vice President

Radar Systems

Business Areas

Business Areas


The knowledge and technology possessed by Danish companies

within this market area are world-class. In recent years, an

increased commercial, scientific, and educational interest

has manifested itself. These developments have created new

opportunities for re-energizing the Danish business and scientific

activities within the space industry.

The Space Business Area contributes with mission-customized

software and hardware products and related services to support a

number of the in-orbit pioneering European scientific missions such

as Rosetta, Mars Express, and Venus Express.

Building on this background of experience and capability, Space

has secured significant contracts in support of Galileo, the future

European satellite navigation system. This includes the full

portfolio of Space products and services, including power supplies,

check-out and test systems, and mission control and simulation

systems. Space will develop and deliver the power supplies for the

first four Galileo satellites with a good opportunity to secure orders

for the delivery of similar products for the following 26 satellites

when these are procured in 2009.

Currently, Space is contracted for the development and delivery of

software and hardware systems for numerous ongoing and future

European, Russian, Canadian, and U.S. satellite missions. Examples

of these are Herschel and Planck which were launched in 2009,

Lisa Path Finder with an expected launch in 2010, GAIA with an

expected launch in 2012, the U.S distributed Sensing Experiment,

and the Canadian Sapphire mission.

Furthermore, Space has entered into a contract with ESA for

the man-spaced ASIM mission and is currently responsible for a

scientific and industrial team developing a structure of six cameras

to be placed outside the International Space Station (ISS). The

purpose of the mission is to support the study and understanding of

how thunderstorms affect the atmosphere and the climate. Phase

B was concluded early in 2009, and Phases C and D are expected to

start in mid 2009.

The Electronic Manufacturing Business Area within Terma

specializes in the manufacture of high quality, complex electronics

and harnesses in low to medium volume for the defense and non-

defense markets, including products for the F-35 fighter aircraft,

radar systems, space power supplies, and star trackers.

Electronics for the onboard radar system and the harnesses for

connecting the actuators are top priority F-35 programs. Terma has

secured contracts for five electronic units for the radar systems

and for the System Development and Demonstration (SDD) and

Low Rate Initial Production (LRIP) 2 phases. Three different types

of advanced harnesses have been delivered and are now qualified

for the F-35 fighter aircraft. Developing additional capabilities

and capacity for these programs will be important in future years;

therefore investments in our manufacturing facilities will also

receive high priority. Significant, cross-organizational synergies are

utilized in the manufacturing processes.

To support the Space Business Area in the Galileo program,

investments have been implemented in Electronic Manufacturing

to secure the necessary high-level capabilities. A new clean room

facility has been established in conjunction with investments

in Surface Mount Technology (SMT) production. The delivery of

the technologically challenging power supplies will be of major

importance when Terma secures the contracts for the additional

satellites within this program.

The manufacturing capabilities and competencies are also being

developed to support the Radar Systems Business Area with their

existing and new SCANTER radars and antenna products.

Electronic Manufacturing continuously strives to improve

performance and to be a competitive, flexible, and quick reaction

supply unit. Streamlining and further optimization of the supply

chains will be a major focus area in the coming years, and

lean programs are in operation with regard to attaining these

improvements.

Carsten Jørgensen Senior Vice President

Lars Nissen Vice President

Electronic Manufacturing

Space


International Group Locations

Terma North America Inc.

Terma North America, Inc. (TNA), the U.S. subsidiary of Terma A/S,

headquartered in the Washington D.C. area, is now well established

as the interface to U.S. customers for all Terma Business Areas.

TNA facilitates the growth of Terma business in the U.S. by providing

a local technological and business development presence near our

important U.S. customers. TNA has offices and facilities in the D.C. area

and in Warner Robins, Georgia. This year, Terma opened an engineering

facility in Fort Worth, Texas, in close proximity to the Lockheed

Martin F-35 program headquarters, and a facility in Portsmouth,

Virginia, near the U.S. Coast Guard headquarters. This latter facility

will provide service and support of our radar products in the U.S.

The TNA Airborne Systems Business Area, with primary facilities

and personnel in Warner Robins, Georgia, booked significant new

orders and expanded its traditional customer base. Additionally,

this Business Area was successful in securing important follow-on

contracts from the U.S. Air Force and the U.S. Defense Department

office in support of Foreign Military Sales (FMS) programs.

With the Fort Worth facility, the Aerostructures Business Area is

now strongly represented within TNA. This office is staffed with

highly trained engineering, program management, and business

development professionals that are involved in the F-35 contracts

with Lockheed Martin. These capabilities within TNA will also

further facilitate our future U.S. growth beyond the F-35 program.

The TNA Radar Systems Business Area began work installing the

SCANTER 2001 radar system on an experimental U.S. Navy ship

that will be used to demonstrate technologies associated with

the detection and interdiction of smugglers. This demonstration

will increase the visibility of Terma Radar Systems with different

agencies that are in need of such sensors and equipment.

An important partnership between Integrated Systems and Lockheed

Martin’s Sensor Systems Company has co-developed a command and

control product for ballistic missile defense (BMD) applications, BMD-

Flex, and resulted in the award of our first contract.

Terma B.V., the Dutch subsidiary of Terma A/S, focuses on three

prime market areas: space, aircraft survivability equipment, and

public safety and emergency (PS&E). The past year has seen

significant efforts to expand the role of Terma B.V. in supporting

electronic warfare (EW) products and to establish a presence in

the PS&E arena.

Space activities include in-house turnkey system integration and

system development specializing in spacecraft test, simulation

and management systems together with providing highly

specialized consultants to ESTEC in support of ESA projects and

ESA infrastructure activities.

EW products delivered by Airborne Systems to the Royal

Netherlands Air Force (RNLAF) require technical support,

including repairs, upgrades, and modification programs. In

2007, Terma B.V. initiated a dialog with the RNLAF to establish

a local support facility in Woensdrecht for both fixed-wing

and helicopter platforms. It is expected that this facility, the

Electronic Warfare Competence Center (EWCC), will come into

operation on the air base in 2009. It is the intention to expand the

capabilities in the future to include support to other EW-related

systems operated by the RNLAF and for similar protection

systems deployed by other NATO air forces.

There is strong interest from the Dutch Government and regional

civil authorities in robust mission-critical C3 systems developed

for defense purposes which can be adapted for civil use. The

Terma A/S contract to deliver and support the control room

software for the Danish nationwide preparedness network,

based around the T-Core product line, has enabled Terma B.V.

to pursue a similar market opportunity in The Netherlands. In

2009, it is anticipated that the Dutch authorities will increase

their activities related to the procurement of upgrades and

enhancements to their existing civil preparedness systems.

Richard Jones Senior Vice President, Terma B.V.

James (Jim) Brandt President & CEO, Terma North America Inc.

Terma B.V.


Accounting PoliciesThe annual report of Terma A/S for 2008/09 has been prepared in accordance with the provisions applying to class C enterprises (large) under the Danish Financial Statements Act. The Consolidated Financial Statements of Terma A/S are consolidated in the Consolidated Financial Statements of the ultimate Parent Company, the Thomas B. Thrige Foundation, Copenhagen.

Accounting policies applied in the preparation of the annual report are consistent with those of last year.

Consolidated Financial Statements

The Consolidated Financial Statements comprise the Parent Company, Terma A/S, and subsidiaries in which Terma A/S directly or indirectly holds more than 50 percent of the voting rights or which it, in some other way, controls.

The Consolidated Financial Statements are prepared as a consolidation of the audited financial statements of the Parent Company and subsidiaries, which have all been prepared according to the Group’s accounting policies.

On consolidation, intra-group income and expenses, stockholdings, intra-group balances and dividends, and realized and unrealized gains and losses on intra-group transactions are eliminated.

Equity interests in subsidiaries are set off against the proportionate share of the subsidiaries’ fair value of net assets or liabilities at the acquisition date.

Enterprises acquired or formed during the year are recognized in the Consolidated Financial Statements from the date of acquisition. Enterprises disposed of are recognized in the Consolidated Statement of Income until the date of disposal. The comparative figures are not adjusted for acquisitions or disposals.

Acquisitions of enterprises are accounted for using the purchase method, according to which the identifiable assets and liabilities acquired are measured at their

fair values at the date of acquisition. Allowance is made for costs related to adopted and announced plans to restructure the acquired enterprise. The tax effect of the revaluation is taken into account.

Any excess of the cost of the acquisition over the fair value of the identifiable assets and liabilities acquired (goodwill), including restructuring allowances, is recognized as intangibles and amortized on a systematic basis in the Statement of Income based on an individual assessment of the useful life of the asset, however, not exceeding 20 years. Any excess of the fair values of the identifiable assets and liabilities acquired over the cost of the acquisition (negative goodwill), representing an anticipated adverse development in the acquired enterprises, is recognized in the Balance Sheet as prepayments and deferred charges and recognized in the Statement of Income as the adverse development is realized. Negative goodwill, not related to any anticipated adverse development, is recognized in the Balance Sheet at an amount corresponding to the fair value of non-monetary assets. The amount is subsequently recognized in the Statement of Income over the average useful lives of the non-monetary assets.

Goodwill and negative goodwill from acquired enterprises can be adjusted until the end of the year following the acquisition.

Gains or losses on disposal of subsidiaries are stated as the difference between the sales amount or disposal amount and the carrying amount of net assets at the date of disposal, including non-amortized goodwill and anticipated disposal costs.

Foreign Currency Translation

Transactions denominated in foreign currencies are translated at the exchange rates at the transaction date. Foreign exchange differences arising between the exchange rates at the transaction date and at the date of payment are recognized

in the Statement of Income as a financial income or financial costs.

Receivables, payables, and other monetary items denominated in foreign currencies, which are not settled on the Balance Sheet date, are translated at the exchange rates at the Balance Sheet date. The difference between the exchange rates at the Balance Sheet date and at the date at which the receivable or payable arose or was recognized in the latest financial statements is recognized in the Statement of Income as financial income or financial costs.

Derivative Financial Instruments

Derivative financial instruments are initially recognized in the Balance Sheet at cost and are subsequently measured at fair value. Positive and negative fair values of derivative financial instruments are included in other receivables and other payables, respectively.

Changes in the fair value of derivative financial instruments designated as and qualifying for recognition as a hedge of the fair value of a recognized asset or liability are recognized in the Statement of Income together with changes in the value of the hedged asset or liability.

Changes in the fair value of derivative financial instruments designated as and qualifying for recognition as a hedge of future assets or liabilities are recognized directly in the equity. Income and expenses relating to such hedging transactions are transferred from equity on realization of the hedged item and recognized in the same item as the hedged item.

Statement of IncomeSales

Sales comprise the deliveries for the year and the change in value of contract work in process (long-term).

Contract work in process (long-term) is recognized as sales when it reaches the

Accounting Policies


stage of completion. Accordingly, sales correspond to the sales price of work performed during the year (percentage of completion method).

ProductionCosts

Production costs comprise costs, including depreciation, amortization, and salaries, incurred in generating the sales for the year. Such costs include direct and indirect costs for raw materials and consumables, wages and salaries, depreciation of production plant, and other production costs.

Production costs also comprise research and development costs, which do not qualify for capitalization, and amortization and impairment of capitalized development costs.

DistributionCosts

Costs incurred in distributing goods sold during the year and in conducting sales campaigns, etc. during the year are recognized as distribution costs. Also, costs relating to sales staff, advertising, exhibitions, and depreciation are recognized as distribution costs.

AdministrativeCosts

Administrative costs comprise expenses incurred during the year for Group Management and Administration, including expenses for administrative staff, office premises and office expenses, and depreciation.

OtherOperatingIncomeandCosts

Other operating income and costs comprise items secondary to the principal activities of the Group, including gains and losses on disposal of intangibles and property, plant, and equipment.

FinancialIncomeandCosts

Financial income and costs comprise interest income and expenses, gains and losses on payables, and transactions denominated in foreign currencies,

amortization of financial assets and liabilities as well as surcharges and allowances under the tax prepayment scheme, etc. Financial income and costs are recognized with the amounts relating to the fiscal year.

TaxonProfitfortheYear

The Group is subject to the compulsory Danish joint taxation method for the Thrige Holding Group’s Danish companies. Subsidiaries are part of the joint taxation from the time of the consolidation in the Group’s financial statements and until the time when they are left out of the consolidation.

Thrige Holding A/S is the administrative company for the joint taxation, and as a consequence, it settles all group tax payments with the authorities.

The current Danish corporate income tax is allocated by payment of the joint taxation contribution between the jointly taxed companies relative to the taxable income. In this respect, companies with tax loss receive joint taxation contributions from companies which have used this loss to reduce their own tax profit.

The tax for the year, which consists of the current corporate tax for the year, the joint taxation contribution, and change in deferred tax – as a consequence of the reduction in the tax rate – is recognized in the Statement of Income with the portion relating to the profit for the year, and directly in the equity with the portion relating to items directly in the equity.

Balance SheetIntangibles

Goodwill

Goodwill is measured at cost less accumulated amortizations and impairments.

Goodwill is amortized on a straight-line basis over its estimated useful life.

The carrying amount of goodwill is assessed currently and written down

in the Statement of Income to the recoverable amount, if the carrying amount exceeds the expected future net income from the enterprise or activity to which the goodwill relates.

DevelopmentProjectsinProcess

Development projects in process comprise costs, salaries, and amortization directly or indirectly attributable to the development activities of the enterprise.

Development projects that are clearly defined and identifiable, where the technical utilization degree, sufficient resources, and potential future market or development opportunities in the Group are established, and where it is intended to produce, market, or use the project, are recognized as intangibles, provided that the cost can be measured reliably, and that there is sufficient assurance that future earnings can cover production costs, sales and administrative expenses, and development projects in process. Other development projects in process are recognized in the Statement of Income when incurred.

Capitalized development projects in process are recognized at cost less accumulated amortization or recoverable amount, if this is lower.

Following the completion of the development work, capitalized development projects in process are amortized concurrently with the sales of the developed products alternatively on a straight-line basis over the estimated useful life.

Development projects in process are written down to the recoverable amount, if this is lower than the carrying amount. Annual impairment tests are conducted relative to each development project.

Property,Plant,andEquipment

Land and buildings, plant and machinery, and fixtures and fittings, tools and equipment are measured at cost less accumulated depreciation.

Accounting Policies


Cost comprises the purchase price and any costs directly attributable to the acquisition until the date when the asset is available for use. The cost of self-constructed assets comprises direct and indirect costs of materials, components, subcontractors, and wages and salaries.

The cost of leases is stated at the lower value of fair value and the present value of the future lease payments. For the calculation of the net present value, the interest rate implicit in the lease or an approximation thereof is used as discount rate.

Depreciation is provided on a straight-line basis over the expected useful lives of the assets. The expected useful lives are as follows:

Buildings 10–50 yearsPlant and machinery 5–10 yearsFixtures and fittings, tools and equipment 3–7 years

Depreciation is recognized in the Statement of Income as production costs, distribution costs, and administrative expenses, respectively.

Property, plant, and equipment are written down to the recoverable amount, if this is lower than the carrying amount. In case of impairment loss, impairment tests are conducted relative to the individual asset or groups of assets, respectively.

Gains and losses on the disposal of property, plant, and equipment are determined as the difference between the sales price less disposal costs, and the carrying amount at the date of disposal. The gains or losses are recognized in the Statement of Income as other operating income or other operating costs, respectively.

EquityInterestsinSubsidiaries

Equity interests in subsidiaries are measured according to the equity method.

Equity interests in subsidiaries are measured in the Balance Sheet at the proportionate share of the subsidiaries’ net asset values calculated in accordance with the Parent Company’s accounting

policies minus or plus unrealized intra-group profits and losses, and plus or minus the remaining value of positive goodwill or negative goodwill, respectively.

Subsidiaries with negative net asset values are measured at DKK 0 (nil), and any amounts owed by such subsidiaries are written down by the Parent Company’s share of the negative net asset value. Where the negative net asset value exceeds the amount owed, the remaining amount is recognized under allowances, if the Parent Company has a legal or constructive obligation to cover the subsidiary’s negative balance.

Net revaluation of equity interests in subsidiaries is transferred to the reserve for net revaluation according to the equity method under equity to the extent that the carrying amount exceeds cost.

On acquisition of subsidiaries, the purchase method is applied, cf. Consolidated Financial Statements above.

OwnStock

Own stock is valued according to the purchase price or a lower market value. An amount corresponding to the capitalized value is reserved under equity, named “Reserve for own stock”.

Inventories

Inventories are measured at cost in accordance with the FIFO method. Where the net realizable value is lower than cost, inventories are written down to this lower value. Cost comprises purchase price plus delivery costs.

Finished goods and work in process are measured at cost, comprising the cost of raw materials, consumables, direct wages and salaries, and indirect production costs. Indirect production costs comprise indirect materials and wages and salaries as well as maintenance and depreciation of production machinery, buildings, and equipment as well as factory administration and management. Borrowing costs are not recognized.

The net realizable value of inventories is calculated as the sales amount less costs of completion and costs necessary to make the sale, and is determined taking into account marketability, obsolescence, and development in expected sales price.

ContractWorkinProcess(long-term)

Contract work in process (long-term) is measured at the sales price of the work performed. The sales price is measured on the basis of the stage of completion at the Balance Sheet date and total expected income from the contract work. When the sales price of a contract cannot be measured reliably, the sales price is measured at the costs incurred or at net realizable value, if this is lower.

Individual contract work in process is recognized in the Balance Sheet under either receivables or payables, depending on the net amount of the sales price less prepayments. Sales costs and costs incurred in securing contracts are recognized in the Statement of Income when incurred.

Receivables

Receivables are measured at amortized cost. Write-down is made to meet expected losses.

PrepaymentsandDeferredCharges

Prepayments and deferred charges, recognized under assets, comprise costs incurred concerning subsequent fiscal years.

Equity–Dividends

Dividends are recognized as a liability at the date when they are adopted at the annual general meeting (time of announcement). The expected dividend payment for the year is disclosed as a separate item under equity.

CurrentTaxandDeferredTax

According to the joint taxation method, as the administrative company, Thrige Holding A/S assumes the liability to the

Accounting Policies


tax authorities for the corporate tax of the Danish subsidiaries, concurrently with the subsidiaries paying their joint tax contribution.

Current tax payable and receivable is recognized in the Balance Sheet as tax calculated on the taxable income for the year, adjusted for tax on the taxable income of previous years, and for tax paid on account.

Payable and receivable joint tax contributions are recognized in the Balance Sheet under balances for the Parent Company.

Deferred tax is measured under the Balance Sheet liability method on all temporary differences between the carrying amount and the tax base of assets and liabilities. However, deferred tax is not recognized on temporary differences relative to amortization of goodwill disallowed for tax purposes and other items where temporary differences – excluding acquisitions – have arisen on the date of acquisition, without affecting the net income or taxable income.

Deferred tax assets, including the tax base of tax loss allowed for carryforward, are recognized under current assets at the expected value of their utilization, either as elimination in tax on future earnings or offsetting against deferred tax liabilities within the same legal tax entity and jurisdiction.

A readjustment of deferred tax relative to performed eliminations of unrealized, intra-group profit and loss will be carried out.

Deferred tax is measured according to the tax rules and at the tax rates applicable in the respective countries at the Balance Sheet date.

OtherAllowances

Allowances comprise anticipated costs related to restructuring provisions, etc. Allowances are recognized when, as a result of past events, the Group has a legal or a constructive obligation, and it is

probable that settlement of the obligation will result in an outflow of Group resources.

Financial Liabilities

Amounts owed to mortgage banks and credit institutions are recognized at the date of borrowing at the net proceeds received less transaction costs paid. In subsequent periods, the financial liabilities are measured at amortized cost, corresponding to the capitalized value using the effective interest rate. Accordingly, the difference between the proceeds and the nominal value is recognized in the Statement of Income over the term of the loan.

Financial liabilities also include the capitalized residual lease commitment.

Other liabilities, comprising trade payables as well as other payables, are measured at amortized cost.

Cash Flow Statement The Cash Flow Statement shows the Group’s cash flows from operating, invest-ing, and financing activities for the year, the year’s changes in cash and cash equivalents as well as the Group’s cash and cash equivalents at the beginning and end of the year.

CashFlowsfromOperatingActivities

Cash flows from operating activities are calculated as the Group’s share of the profit adjusted for non-cash operating items, changes in working capital, and corporate tax payable and receivable/joint taxation contribution.

CashFlowsfromInvestingActivities

Cash flows from investing activities comprise payments in connection with acquisitions and disposals of intangibles, property, plant, and equipment, and investments.

CashFlowsfromFinancingActivities

Cash flows from financing activities comprise payments to and from the Group’s stockholders and related costs as well as raising of loans and repayment of interest-bearing debt.

CashandCashEquivalents

Cash and cash equivalents and credit institutions comprise cash reduced by current bank borrowings and short-term, marketable securities which are subject to an insignificant risk of changes in value.

Segment InformationGroup sales have been allocated according to business segments and geographical markets.

Accounting Policies


The Board of Directors and the Executive Management have today discussed and adopted the annual report of Terma A/S for 2008/09.

The annual report has been prepared in accordance with the Danish Financial Statements Act. We consider the accounting policies applied to be appropriate. Accordingly, the annual report gives a true and fair view of the Group’s and Parent Company’s assets, liabilities, and financial position at

For Terma A/S Stockholders

We have audited the annual report of Terma A/S for the 1 March 2008–28 February 2009 fiscal year, to include Management’s Statement, Management’s Review, accounting policies, income statements, balance sheet, disclosures in the notes of the Group as well as the Parent Company, and the Group’s statement of cash flows. The annual report is prepared in accordance with the Danish Financial Statements Act.

Executive Management’s Responsibility for the Annual Report

The Executive Management is responsible for preparation and presentation of an annual report that gives a fair presentation in accordance with the Danish Financial Statements Act. This responsibility includes preparation, implementation, and maintenance of internal controls, which are relevant for the preparation and presentation of an annual report, which gives a fair presentation free from material errors, irrespective of such errors being due to fraud or misstatements, in addition to selection and adoption of appropriate accounting policies and provision of accounting estimates, deemed fair in the circumstances.

Independent Auditors’ Report

Executive Management’s Statement28 February 2009, as well as of the results of the Group’s and the Parent Company’s activities and the Group’s cash flows for the fiscal year 2008/09.

We recommend that the annual report be approved at the annual general meeting.

Lystrup,20May2009

Executive Management:

Jens Maaløe, President & CEO

Auditors’ Responsibility and Audit Performed

It is our responsibility to provide an opinion on the annual report based on audit performed. We have conducted our audit in accordance with the Danish auditing standards. These standards require that we live up to ethical requirements and plan and perform the audit with a view to achieving a high degree of certainty that the annual report is free from material misstatements.

Auditing includes actions to achieve audit evidence for the amounts and information disclosed in the annual report. The selected actions depend on the auditor’s assessment, to include assessment of risk of material misstatements in the annual report, irrespective of such errors being due to fraud or misstatements. In the risk assessment, the auditor considers internal controls relevant to the Company’s preparation and presentation of an annual report, which gives a fair presentation with a view to auditing actions appropriate in the circumstances, however, not to express an opinion on the effectiveness of the Company’s internal controls. Furthermore, auditing includes an opinion as to the Management’s adopted accounting policies being appropriate and its accounting estimates

fair, and an evaluation of the overall annual report presentation.

In our opinion, the audit evidence obtained is sufficient and qualified as a basis for our opinion.

Our audit does not give rise to qualifications.

Opinion

In our opinion, the annual report gives a fair presentation of the Group’s and the Parent Company’s assets, liabilities, and financial position at 28 February 2009 as well as the results of the Group’s and Parent Company’s activities and the Group’s cash flows for the 1 March 2008–28 February 2009 fiscal year, in accordance with the Danish Financial Statements Act.

Århus,20May2009

KPMG Statsautoriseret Revisionspartnerselskab

Flemming BrokhattingenState-Authorized Public Accountant

Jes Lauritzen State-Authorized Public Accountant

Birthe H. Rask, Executive Vice President & CFO

Executive Management’s Statement and Independent Auditors’ Report

Board of Directors:

Svend-Aage Nielsen, Chairman

Holger Lavesen, Deputy Chairman

Henrik Stenbjerre

Peter Dyvig

Bo Laursen

Paul-Werner Johnsen


Notes:Pages25and26

DKK thousand Consolidated Parent Company

Note 2008/09 2007/08 2008/09 2007/08

1, 2 Sales 1,057,707 1,038,548 950,900 939,287

3 Production costs (813,108) (759,553) (726,188) (683,197)

Gross profit 244,599 278,995 224,712 256,090

3 Distribution costs (96,320) (94,502) (97,274) (85,586)

3, 4 Administrative costs (74,593) (70,016) (59,718) (55,869)

Ordinary operating profit 73,686 114,477 67,720 114,635

5 Other operating income 517 414 517 479

Operating profit 74,203 114,891 68,237 115,114

Profit in subsidiaries before tax - - 7,439 1,832

6 Financial income 8,340 1,111 9,407 1,754

6 Financial costs (22,260) (20,368) (24,800) (23,066)

Profit from ordinary activities before tax 60,283 95,634 60,283 95,634

7 Tax on profit from ordinary activities (18,572) (11,644) (18,572) (11,644)

Profit for the year 41,711 83,990 41,711 83,990

Proposed profit distribution

Proposed dividends 20,000 21,000 20,000 21,000

Reserve for net revaluation according to the equity method - - 4,171 7,253

Profit for the year carried forward 21,711 62,990 17,540 55,737

41,711 83,990 41,711 83,990

1 March–28 February

Statement of Income



Note 2009 2008 2009 2008

Assets

Non-current assets

Intangibles

Goodwill 0 1,207 0 1,207

Completed development projects 142,364 128,528 142,364 128,528

Development projects in process 158,733 48,149 158,733 48,149

8 301,097 177,884 301,097 177,884

Property, plant, and equipment

Land and buildings 225,448 189,990 225,448 189,990

Plant and machinery 49,817 37,658 47,671 35,591

Fixtures and fittings, tools and equipment 18,704 17,205 14,474 14,546

Payment on account and property, plant, and equipment under construction 1,367 8,014 1,367 8,014

9 295,336 252,867 288,960 248,141

Investments

10 Equity interests in subsidiaries - - 71,207 74,097

Own stock 0 75,188 0 75,188

0 75,188 71,207 149,285

Non-current assets, total 596,433 505,939 661,264 575,310

Current assets

Inventories

Raw materials and consumables 105,939 57,939 105,939 57,939

Work in process 125,314 114,346 104,671 112,237

On-account payments from customers (17,362) (20,448) (17,362) (20,405)

Prepayments to suppliers 2,819 1,701 2,819 1,701

216,710 153,538 196,067 151,472

Receivables

Trade accounts receivable 368,458 411,550 331,576 394,306

11 Contract work in process (long-term) 105,957 26,425 105,957 26,425

Amounts owed by subsidiaries - - 38,998 3,793

17 Corporate tax receivable 1,608 2,816 316 0

12 Other receivables 13,170 23,713 12,103 21,769

15 Deferred tax asset 6,452 8,175 0 0

13 Prepayments and deferred charges 13,832 7,456 13,832 7,456

509,477 480,135 502,782 453,749

Cash and cash equivalents 16,246 6,820 3,200 96

Current assets, total 742,433 640,493 702,049 605,317

Assets, total 1,338,866 1,146,432 1,363,313 1,180,627

Notes:Pages26,27,28,30,and31

Assets28 February

Balance Sheet



Note 2009 2008 2009 2008

Equity and liabilities

Equity

Capital stock 18,000 20,000 18,000 20,000

Reserve for own stock 0 75,188 0 75,188

Net revaluation according to the equity method - - 9,564 12,844

Profit carried forward 336,591 324,320 327,027 311,476

Proposed dividends 20,000 21,000 20,000 21,000

14 Equity, total 374,591 440,508 374,591 440,508

Allowances

Warranty commitments 2,730 0 2,730 0

15 Deferred tax 97,338 88,775 97,232 88,545

Allowances, total 100,068 88,775 99,962 88,545

Liabilities other than allowances

Long-term liabilities other than allowances

Employee bonds 10,870 3,361 10,870 3,361

Mortgage banks 195,680 184,411 195,680 184,411

16 206,550 187,772 206,550 187,772

Current liabilities other than allowances

Current portion of long-term liabilities 627 598 627 598

Credit institutions 185,239 55,411 185,239 55,411

Prepayments from customers 153,430 120,159 152,447 119,439

Trade accounts payable 63,820 67,556 62,599 65,480

Amounts owed to Parent Company 135 8 135 8

Amounts owed to subsidiaries - - 56,714 56,201

17 Corporate tax payable 1,689 0 0 0

18 Other payables 252,717 185,645 224,449 166,665

657,657 429,377 682,210 463,802

Liabilities other than allowances, total 864,207 617,149 888,760 651,574

Equity and liabilities, total 1,338,866 1,146,432 1,363,313 1,180,627

19 Contingent liabilities and security

20 Related parties

Notes:Pages29,30,and31

Equity and Liabilities28 February

Balance Sheet


DKK thousand Consolidated

2008/09 2007/08

Profit from ordinary activities before tax 60,283 95,634

Adjustments:

Depreciation, etc. 37,862 34,959

Reversed provisions for warranty commitments 2,730 0

Amortization of development licenses previously transferred to contract work in process (long-term) 35,486 20,557

Financial items 13,920 19,257

89,998 74,773

Changes in working capital:

Inventories (82,737) (19,393)

Receivables (47,531) (37,012)

Prepayments received 33,271 19,156

Trade accounts payable and other payables 63,386 47,574

(33,611) 10,325

Cash generated from operations (operating activities) before financial items 116,670 180,732

Financial items (13,920) (19,257)

Cash flows from operations (ordinary activities) 102,750 161,475

Corporate tax paid (1,495) (4,707)

Cash flows from operating activities 101,255 156,768

Capitalized development costs (149,288) (89,957)

Acquisition of property, land, and equipment (70,194) (28,214)

Disposal of property, land, and equipment 18 806

Cash flows for investing activities (219,464) (117,365)

Changes in long-term liabilities 18,807 40,081

Dividends paid (21,000) (20,000)

Cash flows from financing activities (2,193) 20,081

Changes in cash and cash equivalents (120,402) 59,484

Cash and cash equivalents and credit institutions at 1 March (48,591) (108,075)

Cash and cash equivalents and credit institutions at 28 February (168,993) (48,591)

The Cash Flow Statement cannot be directly derived from the Balance Sheet and the Statement of Income.

1 March–28 February

Cash Flow Statement


Notes

Non-defense

Defense

2008/09

69.35 %

30.65 %

2007/08

36.89 %

63.11 %

5. Other operating income and costs

Lease income 121 159 121 159

Gain on disposal of non-current assets 396 255 396 320

Other operating income, total 517 414 517 479

6. Financial income and costs

Interest income from subsidiaries - - 1,076 647

Interest costs to subsidiaries - - 2,752 2,785

Denmark

Outside Denmark

2008/09

82.78 %

2007/08

80.57 %

19.43 %17.22 %

1. Segment information - Sales

2. Sales

Consolidated Parent Company

DKK thousand 2008/09 2007/08 2008/09 2007/08

Goods and services 880,841 751,230 774,034 651,969

Contract work in process (long-term) 176,866 287,318 176,866 287,318

1,057,707 1,038,548 950,900 939,287

3. Costs

Parent Company Board of Directors emoluments and remuneration of the Executive Management 3,988 4,867 3,988 4,867

Wages and salaries 558,732 475,574 493,342 424,292

Pensions and other social security costs 30,144 25,553 21,800 19,333

Other staff costs 3,893 3,799 3,387 3,566

596,757 509,793 522,517 452,058

Average number of full-time employees 1,183 1,020 1,064 924

4.

Fees paid to auditors appointed at the annual general meeting

Total fees KPMG 1,915 1,840 1,576 1,465

Portion relating to other non-audit services KPMG 1,042 1,096 725 738

Total fees other auditors 726 590 64 0

Portion relating to other non-audit services other auditors 726 590 64 0


Notes

7. Tax on the profit for the year


DKK thousand 2008/09 2007/08 2008/09 2007/08

Joint taxation contribution/current tax 3,074 3,047 (305) (270)

Adjustment related to previous years (230) 0 (230) 0

Deferred tax 11,916 19,130 8,687 28,386

Reduction of tax rate from 28 to 25 0 (7,105) 0 (7,113)

Tax in subsidiaries - - 6,608 (5,931)

Tax on the profit for the year, total 14,760 15,072 14,760 15,072

Specified as follows:

Tax on profit from ordinary activities 18,572 11,644 18,572 11,644

Tax on changes in equity (3,812) 3,428 (3,812) 3,428

14,760 15,072 14,760 15,072

8. Intangibles

Consolidated

DKK thousand GoodwillCompleted develop-

ment projectsDevelopment

projects in process Total

Cost at 1 March 2008 83,419 299,321 48,149 430,889

Foreign currency translation adjustments (2) 0 0 (2)

Additions 0 26,797 122,491 149,288

Transfer - 2,960 (2,960) 0

Disposals 0 0 0 0

Cost at 28 February 2009 83,417 329,078 167,680 580,175

Amortizations and impairments at 1 March 2008 82,212 170,793 0 253,005

Foreign currency translation adjustments (2) 0 0 (2)

Amortizations 1,207 0 0 1,207

Impairments 0 0 8,947 8,947

Disposals 0 0 0 0

Transferred to current contract work in process - 15,921 0 15,921

Amortizations and impairments at 28 February 2009 83,417 186,714 8,947 279,078

Carrying amount at 28 February 2009 0 142,364 158,733 301,097

Parent Company

DKK thousand GoodwillCompleted develop-

ment projectsDevelopment

projects in process Total

Cost at 1 March 2008 70,411 299,321 48,149 417,881

Additions 0 26,797 122,491 149,288

Transfer - 2,960 (2,960) 0

Disposals 0 0 0 0

Cost at 28 February 2009 70,411 329,078 167,680 567,169

Amortizations and impairments at 1 March 2008 69,204 170,793 0 239,997

Amortizations 1,207 0 0 1,207

Impairments 0 0 8,947 8,947

Disposals 0 0 0 0

Transferred to current contract work in process - 15,921 0 15,921

Amortizations and impairments at 28 February 2009 70,411 186,714 8,947 266,072

Carrying amount at 28 February 2009 0 142,364 158,733 301,097


9. Property, plant, and equipment

Consolidated

DKK thousandLand andbuildings

Plant andmachinery

Fixtures andfittings, tools

and equipment

Payment on account and

property, plant, and equipment

under construction Total

Cost at 1 March 2008 322,768 155,881 89,329 8,014 575,992

Foreign currency translation adjustments 0 698 432 0 1,130

Additions 40,806 25,296 10,739 1,367 78,208

Disposals (2,073) (817) (4,268) (8,014) (15,172)

Cost at 28 February 2009 361,501 181,058 96,232 1,367 640,158

Depreciation and impairments at 1 March 2008 132,778 118,223 72,124 0 323,125

Foreign currency translation adjustments 0 153 18 0 171

Depreciation and impairments 5,348 13,682 9,520 0 28,550

Disposals (2,073) (817) (4,134) 0 (7,024)

Depreciation and impairments at 28 February 2009 136,053 131,241 77,528 0 344,822

Carrying amount at 28 February 2009 225,448 49,817 18,704 1,367 295,336

Depreciated over 10–50 years 5–10 years 3–7 years

At 1 October 2008, the total official annual valuation of Danish properties with a carrying amount of DKK 225,448 thousand amounts to DKK 259,800 thousand. Additions during the year of DKK 40,806 thousand are not included in the annual adjustments of the official property valuations at 1 October 2008.

Parent Company

DKK thousandLand andbuildings

Plant andmachinery

Fixtures andfittings, tools

and equipment

Payment on account and

property, plant, and equipment

under construction Total

Cost at 1 March 2008 244,469 152,377 82,812 8,014 487,672

Additions 40,806 24,694 8,258 1,367 75,125

Disposals (2,073) (817) (4,268) (8,014) (15,172)

Cost at 28 February 2009 283,202 176,254 86,802 1,367 547,625

Depreciation and impairments at 1 March 2008 54,479 116,786 68,266 0 239,531

Depreciation and impairments 5,348 12,614 8,196 0 26,158

Disposals (2,073) (817) (4,134) 0 (7,024)

Depreciation and impairments at 28 February 2009 57,754 128,583 72,328 0 258,665

Carrying amount at 28 February 2009 225,448 47,671 14,474 1,367 288,960

Depreciated over 10–50 years 5–10 years 3–7 years

At 1 October 2008, the total official annual valuation of Danish properties with a carrying amount of DKK 225,448 thousand amounts to DKK 259,800 thousand. Additions during the year of DKK 40,806 thousand are not included in the annual adjustments of the official property valuations at 1 October 2008.

Notes


11. Contract work in process (long-term)


DKK thousand 2009 2008 2009 2008

Contract work in process (long-term) 149,654 55,024 149,654 55,024

Invoiced on account (43,697) (28,599) (43,697) (28,599)

Contract work in process (long-term), net, at 28 February 105,957 26,425 105,957 26,425

12. Other receivables

Insurance 8,570 3,377 8,570 3,377

Hedging instruments 1,861 17,114 1,861 17,114

Other 2,739 3,222 1,672 1,278

Other receivables at 28 February 13,170 23,713 12,103 21,769

13. Prepayments and deferred charges

Deposits 490 651 490 651

License fees 425 1,153 425 1,153

Other 12,917 5,652 12,917 5,652

Prepayments and deferred charges at 28 February 13,832 7,456 13,832 7,456

Name Registered office Ownership Capital stock

Terma Ejendomme Skive A/S Århus, Denmark 100 % DKK 1,150 thousand

Terma GmbH Darmstadt, Germany 100 % EUR 51 thousand

Terma B.V. Leiden, The Netherlands 100 % EUR 750 thousand

Terma S.r.l. Besozzo, Italy 100 % EUR 10 thousand

Terma North America Inc. Delaware, USA 100 % USD 150 thousand

Terma Singapore Pte. Ltd. Singapore, Singapore 100 % SGD 100 thousand

10. Equity interest in subsidiaries

DKK thousand

Cost at 1 March 2008 51,309

Disposals during the year 0

Additions during the year 390

Cost at 28 February 2009 51,699

Net revaluations at 1 March 2008 22,788

Foreign currency translation adjustments 3,340

Dividends paid (7,451)

Profit for the year 831

Net revaluations at 28 February 2009 19,508

Carrying amount at 28 February 2009 71,207

Notes


14. Equity

Consolidated

DKK thousand 2008/09 2007/08

Equity at 1 March 440,508 365,867

Dividends paid (21,000) (20,000)

Profit for the year carried forward 21,711 62,990

Proposed dividends 20,000 21,000

Annulment of own stock (75,188) 0

Changes in value of hedging instruments, etc. (after tax) (11,440) 10,651

Equity at 28 February 374,591 440,508

Consolidated

DKK thousand Capital stock Reserve for own stock

Net revaluation according to

the equity method

Profit carried

forwardProposed dividends Total

Equity at the beginning of the year 20,000 75,188 - 324,320 21,000 440,508

Dividends paid - - - - (21,000) (21,000)

Profit for the year carried forward - - - 21,711 20,000 41,711

Annulment of own stock (2,000) (75,188) 2,000 (75,188)

Changes in value of hedging instruments, etc. (after tax) - - - (11,440) - (11,440)

Equity at year-end 18,000 0 - 336,591 20,000 374,591

Parent Company

DKK thousand Capital stockReserve for own stock

Net revaluation according to

the equity method

Profit carried

forwardProposed dividends Total

Equity at the beginning of the year 20,000 75,188 12,844 311,476 21,000 440,508

Dividends paid - - - - (21,000) (21,000)

Dividends received from subsidiaries - - (7,451) 7,451 - 0

Profit for the year carried forward - - 4,171 17,540 20,000 41,711

Annulment of own stock (2,000) (75,188) - 2,000 - (75,188)

Changes in value of hedging instruments, etc. (after tax) - - - (11,440) - (11,440)

Equity at year-end 18,000 0 9,564 327,027 20,000 374,591

Capital stock consists of: 1 stock at DKK 18 million The capital stock has been reduced by DKK 2 million in connection with annulment of own stock during the fiscal year. The capital stock has remained unchanged during the preceding four years.

Notes


15. Deferred tax


DKK thousand 2008/09 2007/08 2008/09 2007/08

Deferred tax at 1 March 80,600 68,575 88,545 67,272

Foreign currency translation adjustments (1,630) 0 0 0

Reduction of tax rate from 28 to 25 0 (7,105) 0 (7,113)

Adjustment for the year 11,916 19,130 8,687 28,386

Deferred tax at 28 February 90,886 80,600 97,232 88,545

Recognized as follows:

Deferred tax asset (6,452) (8,175) 0 0

Deferred tax 97,338 88,775 97,232 88,545

90,886 80,600 97,232 88,545

Deferred tax relates to:

Intangibles 73,420 40,741 73,420 40,741

Property, plant, and equipment 5,724 3,046 5,724 3,046

Current assets 66,107 74,283 66,001 74,008

Liabilities other than allowances (579) (561) (579) (516)

Tax loss carryforward (53,786) (36,909) (47,334) (28,734)

90,886 80,600 97,232 88,545

16. Long-term liabilities other than allowances

Consolidated

DKK thousand Long-term

liabilities

Current shareof long-term

liabilities

Loans outstanding after 5 years

Employee bonds 10,870 0 0

Mortgage banks 195,680 627 174,615

206,550 627 174,615

Parent Company

DKK thousand Long-term

liabilities

Current shareof long-term

liabilities

Loans outstanding after 5 years

Employee bonds 10,870 0 0

Mortgage banks 195,680 627 174,615

206,550 627 174,615

Notes


17. Corporate tax payable


DKK thousand 2008/09 2007/08 2008/09 2007/08

Corporate tax payable at 1 March (2,816) (1,156) 0 0

Adjustment related to previous years (230) 0 (230) 0

Tax for the year/joint taxation contribution 3,074 3,047 (305) (270)

Corporate tax paid during the year (166) (4,707) 0 12

Transferred to inter-group balances 219 0 219 258

Corporate tax payable at 28 February 81 (2,816) (316) 0

Recognized as follows:

Corporate tax receivable (1,608) (2,816) (316) 0

Corporate tax payable 1,689 0 0 0

81 (2,816) (316) 0

18. Other payables

Project costs payable 92,939 56,053 74,782 45,525

A tax (DK), vacation pay, and social costs payable 105,831 80,049 99,904 75,390

VAT 26,211 15,091 26,090 14,873

Other 27,736 34,452 23,673 30,877

Other payables at 28 February 252,717 185,645 224,449 166,665

19. Contingent liabilities and security


DKK thousand 2009 2008 2009 2008

Contingent liabilities

Lease liabilities (operating leases) falling due within five years 15,306 13,014 5,064 6,412

Lease guarantee in the period until 31 March 2014. Annually DKK 4.2 million 20,600 24,800 20,600 24,800

The Group’s Danish companies are jointly liable for joint registration of VAT

Security

The following assets have been provided as security for mortgage banks:

Carrying amount for land and buildings 225,448 189,990 225,448 189,990

Terma A/S – acting as the Parent Company – has issued a letter of intent to third parties in connection with the establishment of credit facilities for its subsidiary at a total amount of DKK 23,570 thousand

20. Related parties

Terma A/S is a wholly owned subsidiary of Thrige Holding A/S, which is wholly owned by the Thomas B. Thrige Foundation.

Terma A/S’ related parties exercising significant influence comprise the Board of Directors, the Executive Management, managerial staff, and their family members. Further, related parties comprise companies in which the above-mentioned persons have substantial interests.

Apart from the inter-group transactions which have been eliminated in the consolidated financial statements and the usual remuneration and emoluments, no transactions have been concluded relative to the Board of Directors, Executive Managers, managerial staff, major stockholders, or other related parties.

Notes

Terma A/SHovmarken 48520 LystrupDenmarkT +45 8743 6000F +45 8743 6001Reg. no. 41881828

Vasekær 122730 HerlevDenmarkT +45 8743 6000F +45 8743 6001

Fabrikvej 18500 GrenaaDenmarkT +45 8779 5200F +45 8779 5201

Terma B.V.Schuttersveld 92316 XG LeidenThe NetherlandsT +31 71 524 0800F +31 71 514 3277Reg. no. 28083640

Terma GmbHEuropahausEuropaplatz 564293 DarmstadtGermanyT +49 6151 86005-0F +49 6151 86005-99Reg. no. HRB 7411

Terma North America Inc.2461 South Clark StreetCentury Two, Suite 810Arlington, VA 22202USAT +1 (703) 412 9410F +1 (703) 412 9415 Reg. no. 3797996 (Delaware)

Parkway Commons 601 A Russell Parkway Warner Robins, GA 31088 USA T: +1 (478) 923 7233 F: +1 (478) 923 7360

University Center I 1300 South University Drive 3rd floor, Suite 306 Fort Worth, Tarrant County, TX 76107 USA T: +1 (817) 332 7770 F: +1 (817) 332 7773

814 Greenbrier Circle, Suite EChesapeake, VA 23320 USA T: +1 (757) 395 0215 F: +1 (757) 420 6910

Terma Singapore Pte. Ltd.3 International Business Park#04-31 Nordic European CentreSingapore 609927T +65 6561 0060F +65 6562 0060Reg. no. 200806753D

[email protected]

terma a/s annual report 2008/096 annual report 2008/09 sales for the fiscal year were mdkk 1,058...

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