Annual Report 2014 - Falck - få sikkerhed og hjælp af Falck · 2016-05-31 · Tax on...

Annual Report 2014

Parent company financial statements

Management’s statement

Consolidated financial statements

Content Management review

Management reviewKey figures and financial ratios 2Falck makes a difference 4Highlights of the year 6Business areas 8 Emergency 10 Assistance 16 Healthcare 20 Safety Services 24Corporate social responsibility 28Corporate governance 34Financial review 36Risk factors 41

Consolidated financial statements Income statement 45 Statement of comprehensive income 46 Cash flow statement 47 Balance sheet 48 Equity statement 50 Notes 51

Parent company financial statements Income statement 92 Statement of comprehensive income 92 Cash flow statement 93 Balance sheet 94 Equity statement 96 Notes 97

Management’s statement 106Independent auditor’s report 107Board of Directors, Executive Management Board and auditors 108Legal entities in the Falck Group 111Definitions of ratios 116

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Contentber: indhold

brazilEmergencySafety Services339 employees

ChileEmergency102 employees

UruguayEmergency1,145 employees

TrinidadSafety Services37 employees

VenezuelaEmergency364 employees

ColumbiaEmergency2,651 employees

ecuadorEmergency126 employees

PanamaEmergency138 employees

el SalvadorEmergency9 employees

USAEmergencyAssistanceSafety Services4,319 employees

MexicoSafety Services17 employees

CanadaSafety Services40 employees

PortugalEmergency65 employees

estoniaAssistance24 employees

United KingdomEmergencySafety Services257 employees

FinlandEmergencyAssistance121 employees

TurkeyEmergency5 employees

AzerbaijanSafety Services13 employees

indiaEmergencyAssistance145 employees

ChinaAssistance3 employees

ThailandSafety Services16 employees

United ArabemiratesSafety Services30 employees

GermanyEmergencySafety Services1,866 employees

belgiumEmergencySafety Services49 employees

netherlandsEmergencySafety Services296 employees

denmarkEmergencyAssistanceHealthcareSafety Services11,728 employees

norwayEmergencyAssistanceHealthcareSafety Services457 employees

SwedenEmergencyAssistanceHealthcare2,804 employees

AngolaEmergencySafety Services1 employee

FranceEmergency260 employees

SwitzerlandEmergency1 employee

nigeriaEmergencySafety Services127 employees

SpainEmergency639 employees

QatarSafety Services8 employees

romaniaEmergency203 employees

KazakhstanEmergency312 employees

Papua new GuineaEmergency16 employees

MalaysiaSafety Services81 employees

VietnamSafety Services8 employees

italyEmergency30 employees

AustraliaEmergency146 employees

SingaporeSafety Services14 employees

Czech rebublicEmergency91 employees

SlovakiaEmergency1,868 employees

PolandEmergency3,179 employees

Global presence

34,000We have more than 34,000 employees

45We are present in 45 countries across the globe

Falck established a presence in Portugal and the Czech Republic during 2014

Portugal and the Czech republic

Content Consolidated financial statements



Management review

Management review | Falck Annual Report 2014 1

Revenue by geographical and business area

Falck’s activities are based on assisting people in emergency situations and remedying damage to property. These activities include:

• Ambulanceservices• Firefighting• Medicalandhealthcareclinics• Roadsideassistance• Assistanceintheeventofdamagetoproperty• Assistanceintheeventofillnessoraccidentswhile

travelling

On this basis, Falck has developed services aimed at preventing and reducing the consequences of emergency situations: servic-eswhichincludesafetytraining,contingencyplanning,medicalexaminationsandpreventionofwork-relatedinjuries.Falckalsoprovidesservicesthatmitigatetheeffectofaccidentsorillnessincluding patient transportation, psychological treatment and treatment of the muscoskeletal system.

FALCK IS AN INtERNAtIoNAL oRGANISAtIoN EStABLISHED IN DENMARK IN 1906 WHoSE oBjECtIvES ARE to WoRK to PREvENt ACCIDENtS, DISEASE AND EMERGENCy SItuAtIoNS. to RESCuE AND ASSISt PEoPLE IN EMERGENCIES quICKLy AND CoMPEtENtLy AND to REHABILItAtE PEoPLE AFtER ILLNESS AND INjuRy

Falck has strong competencies in preventing and handling cri-sissituationsvialocalplatformsinaglobalnetworkbasedonstrong values about assisting people in emergency situations.

Falck has gone through an extensive internationalisation pro-cessoverthepastdecadeinthefieldsofambulanceservices,fire-fighting,clinicsandsafetytraining.Theseactivitiesareprimarily operated in the Nordic countries, the United States and Latin America, but there is also a strong focus on expand-ing these services in Europe and on establishing a presence in newmarketsinAsiaandAfrica,asFalckhasthecompetencies,financialstrengthandnetworktoprovidetheseservicesinallcountrieswhereneedandopportunitiescoexist.

Falck’s development is currently being supported by a global focus on and a need for healthcare services, safety and security aswellasgenerallyincreasedwillingnessbypublicauthoritiestopartnerwithprivateserviceproviderstobothsavecostsandensure a better quality of the services provided to people.

Falck’s activities are organised in four business areas: Emergency, Assistance, Healthcare and Safety Services.

Falck is people helping people

Wearealwaysthere

Emergency, 56.4%

Assistance, 21.5%

Healthcare, 12.8%

Safety Services, 9.3%

Denmark, 43.8%

Nordic region, 17.2%

Europe, 15.7%

North America, 14.0%

Latin America, 6.7%

Rest of the world, 2.6%

14DKK 14 billion in revenue

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ber: MAnAGeMenT reView

Keyfiguresandfinancialratios

Revenue, pro forma organic growth Revenue, Falck Holding A/S

EBItA, pro forma EBItA margin EBItA, Falck Holding A/S

Revenue, EBITA, EBITA margin and organic growth by business area

Revenue EBITA EBITA margin (%) Organic growth1)

DKK million % of total 2014 2013 2014 2013 2014 2013 2014 2013

Emergency 62.3 8,688 7,958 552 474 6.4 6.0 8.6 7.7 Assistance 21.6 3,012 3,004 308 311 10.2 10.4 1.4 4.4 Healthcare 13.1 1,829 1,206 132 112 7.2 9.3 11.8 13.6 Safety Services 9.8 1,366 1,316 147 215 10.7 16.3 5.5 11.3 Eliminations -6.8 -943 -950 Group total 100.0 13,952 12,534 1,139 1,112 8.2 8.9 6.8 7.7

1)Theratioisanexpressionofexternalrevenuegrowthinlocalcurrenciesadjustedforacquisitionsanddivestments.

Key figures anD financial ratios 2014 2013 2012 2011*

Revenue DKKmillion 13,952 12,534 11,504 5,247Organicgrowth % 6.8 7.7 7.6 3.6EBITA DKKmillion 1,139 1,112 1,083 522EBITAmargin % 8.2 8.9 9.4 9.6Cashconversionrate % 80.9 88.4 89.2 118.2Operatingprofit DKKmillion 606 562 532 229Profitbeforetax DKKmillion 325 249 196 58

Totalassets DKKmillion 18,693 17,681 17,179 16,734Equityratio % 35.3 30.9 32.5 33.9Returnonequity % 3.4 3.6 1.9 0.3Returnonequityexcl.exceptionalitems % 3.4 3.6 2.2 0.3Netinterest-bearingdebttoEBITDA Factor 3.54 4.06 3.94 4.14

Number of employees at year-end Number 34,230 32,009 28,005 25,262

*Thecomparativefiguresfor2011includetheperiod1Aprilto31December.TheratiosareproformafiguresbasedonfiguresfromtheFalckA/SGroup.

Revenue and organic growthDKKmillion %

eBita and eBita marginDKKmillion %

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2 Falck Annual Report 2014 | Group

Group | Falck Annual Report 2014 2

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Contentber: Key FiGUreS And rATioS

Normalised profit, pro forma Normalised profit, Falck Holding A/S

Free cash flow, pro forma Cash conversion rate Free cash flow, Falck Holding A/S

TheGroupfocusesonanumberofkeyfiguresandratioswhicharenotallderiveddirectlyfromtheincomestatement,cashflowstatementandbalancesheet.Theesekeyfiguresandratiosareshownbelow.

DKK million 2014 2013 2012 2011 *

InCoME stAtEMEntProfit for the year 218 205 119 15 Amortisation of intangible assets and costs from business combinations 533 550 551 293 Exceptional items - - 24 - Debtrestructuringcosts - - - 15Tax on normalisation items and changed tax rate -133 -187 -135 -64

Normalised profit after tax 618 568 559 259

CAsh Flow stAtEMEntEBITDA 1,578 1,502 1,432 708 Changeinworkingcapitalincludingoperatingprovisions -117 -15 6 94Investments in intangible assets and property, plant and equipment -606 -530 -529 -190 Sales of non-current assets 66 26 57 5

Free cash flow 921 983 966 617 Free cash flow after exceptional items, interest and tax 387 452 411 304 Investments in acquisitions -698 -729 -639 -3,470 Capital injections, dividends paid, and changes in interest-bearing debt 407 260 239 4,224

Change in cash and cash equivalents 96 -17 11 1,058

BAlAnCE shEEtCurrent assets excluding cash and cash equivalents, etc. 2,437 2,000 1,792 1,590 Liabilities excluding credit institutions, income taxes, etc. -3,330 -3,142 -3,042 -2,851

Working capital -893 -1,142 -1,250 -1,261 Operating provisions -119 -77 -45 -54 Non-currentassetsexcludinggoodwill 2,308 2,105 1,950 1,746

Net operating assets excluding goodwill 1,296 886 655 431 Goodwill 10,516 9,971 9,554 9,083Intangible assets from acquisitions 1,970 2,261 2,634 3,005 Income taxes -9 -21 -1 -47

Net operating assets including goodwill 13,773 13,097 12,842 12,472

EquityattributabletoFalckHoldingA/S 6,236 5,393 5,512 5,606Non-controlling interests 371 62 77 74

Total equity 6,607 5,455 5,589 5,680 Net interest-bearing debt 5,678 6,215 5,755 5,437 Provisions for deferred tax 486 591 791 876 Non-operating assets and liabilities 1,002 836 707 479

Financing 13,773 13,097 12,842 12,472

*Thecomparativefiguresfor2011includetheperiod1Aprilto31December.TheratiosareproformafiguresbasedonfiguresfromtheFalckA/SGroup.

IntheGroup,cashflowsaredividedintofreecashflow,investmentsinacquisitions,etc.,capitalinjections,dividendspaidandchangeininterest-bearingdebt.Thefreecashflowisnetofinvestmentinproperty,plantandequipmentastheGroupinvestsinvehicles,infrastructureandsimilarassetsaspartofit’sordinaryoperations.Thus,thefreecashflowreflectstheamountavailableforacquisitionsand repayments on debt.

Normalised profitDKKmillion

Free cash flow and cash conversion rate DKKmillion %

2010 2011 2012 2013 20140

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Content

Falckmakesadifference

Theyear2014markedadecadesinceFalckwasrebornasanindependent company after its demerger from Group 4 Falck in2004.Backthen,FalckwasaDanishemergencyservicesproviderwithalimitedpresenceinjustafewnorthernEuro-peancountries,butithassincegrowntobecomeaninterna-tionalgroupwithactivitiesin45countriesworldwide.

Falck took the strength to undergo this rapid development fromitsinvolvementinthebasicaspectsoflife:weassistpeopleinneedofhelp,whethertheyarehavingaheartat-tack,backpainortroublestartingtheircar.Thisworkdefinesourcorporatevalues:efficient,reliable,competent,helpful,accessible and fast.

Onceagain,2014sawusworkingtofulfilourstrategyofbe-coming a global provider of services, assisting people in emer-gencysituationsandpreventingandmitigatingtheeffectsofillness and accidents. Our focus has been on strengthening our position in the most important markets in Europe, Latin AmericaandtheUnitedStates.Wewonseveralnewandre-peatmajorcontractsin2014.

InDenmark,tenderprocesseswereconductedforambulanceservicesinallfiveDanishregions.Foranumberofyearslead-inguptotheseprocesses,wehaveworkedtogetherwithour employees to implement operational improvements that allowedustosubmitattractivebidsinallregions.Asaresult,wewonthecontractsintheCentralDenmarkRegionandtheNorthDenmarkRegionagain,andwewerecontractedtoprovideservicestotheentireRegionZealand,anexpansioncomparedwiththeareaweservedpreviously.IntheCapitalRegionofDenmark,wewerere-awardedallthecontractspossibleunderthetenderconditions.Wewonthecontractsbased on competitive prices, but also very much because oursupplyreliabilityandthequalityoftheservicesweofferrankedveryhighly.Unfortunately,otherbidderswereaward-edthecontractsintheRegionofSouthernDenmark.

In2014,wealsomadetargetedeffortstoexpandFalck’smar-ketpositioninthefieldofassistancetotravellersandexpatri-ates,medicalandhealthcareclinics,andfire-fightingservicesforindustrialcorporationsandairports.Inthefieldoffire

fighting,FalckwonnewcontractsinBelgium,Brazil,Germany,the Netherlands, Portugal, Turkey and the United Kingdom, includingthecontractforfireservicesattheinternationalair-portofRiodeJaneiro.

In the Healthcare business, Falck established Scandinavia’s largestprivateproviderofserviceswithinthepreventionandtreatmentofwork-relatedinjuriesbymergingitsorganisationwithTryghedsGruppen’shealthcarecompanies.

In2014,KIRKBIacquiredanadditional1.2%ofFalckshares,andTryghedsGruppenjoinedtheconsortiumofownersofFalck,whichnowconsistsoftheLundbeckFoundation,KIRK-BI,TryghedsGruppenandFalck’sownmanagement.

Falck’sactivitiescontinuedtogrowin2014,andrevenuein-creasedby11.3%toreachDKK13,952million.

Inadditiontostrongorganicgrowthattherateof6.8%,revenuegrowthwasmainlydrivenbyFalck’smergerwithTryghedsGruppen’s healthcare companies and Falck acquisi-tionswithintheEmergencybusinessinGermanyandAustraliain the second half of 2013 and in France and the United Kingdomin2014.Comparedwith2013,revenuein2014wasadverselyaffectedbyexchangeratestothetuneofDKK195million.

Operatingprofit(EBITA)wasDKK1,139million,anincreaseofDKK27millioninspiteofsubstantiallylowerearningsintheSafetyServicesbusinessduetoalowerlevelofactivityintheoilindustry.Weexpectthatbothrevenueandearningswillcontinuetogrowintheyearsahead.

Our excellent performance in 2014 is very much the result of thededicatedeffortsofFalckemployees,whoworked24/7toprovide safety and security for people, something that is very muchneededallovertheworld.WeareproudthatFalckanditsemployeescananddomakeadifference.

Thorleif Krarup Allan Søgaard Larsen Chairman President and CEO

4 Falck Annual Report 2014 | Management reviewManagement review




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ber: FAlCK MAKeS A diFF

FALCK’S ACtIvItIES ARE BASED oN ASSIStING PEoPLE IN EMERGENCy SItuAtIoNS. tHIS MAKES AMBuLANCE SERvICES oNE oF FALCK’S CoRE SERvICES.

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Content

June

begins partnership with Australian universityTheEdithCowanUniversityinPerth,Australia,signsanagreementwithFalcktosetupdistanceeducationprogrammes – in paramedic services, for example – for Falck staffabroad.Thegoalisalsotodevelopascientificallybasedmodel for advanced telemedicine and instruction in the use of telemedicine technology.

Strengthens industrial fire fighting through british acquisitionTofurtherstrengthenitsplatformforindustrialfirefighting,FalckacquirespartofUK-basedSembcorpUtilities,i.e.itsfire-fightingactivities,whichhavejustover100employees.

Highlights of the year

April

Falck establishes a presence in the Czech republicFalckacquiresBaukomplexlocatedintheCzechRepublic,whichspecialisesinpatienttransportation.With45ambulanc-es and 84,000 responses per year, Baukomplex is the third-largestserviceproviderinitsfieldintheCzechRepublic.

Falck buys part of a French patient transportation companyFalck buys Fineta, one of the largest patient transportation companies in France. Fineta operates 119 vehicles and pro-vides more than 150,000 responses per year from six stations indifferentlocationsinFrance.

May

Falck wins ambulance contract in denmarkFalckwasawardedthecontractforambulanceservicesintheNorthDenmarkRegionforanewfive-yearperiodbeginningin April 2015.

now Scandinavia’s largest provider of services to reduce sickness absenceTryghedsGruppen’shealthcarecompaniesmergewithFalckHealthcare.ThemergerincludesPrevia,Sweden’sleadingproviderofhealthcareservicestoworkplaces,andQuickCare,whichassistsDanishandNorwegianjobcentresinhelpingpeopleonsickleavegetbacktowork.





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ber: hiGhliGhTS oF The yeAr

July

Falck wins fire-fighting contract for rio international AirportFalckwinsthecontracttorunfire-fightingservicesattheinternationalairportofRiodeJaneiroforthenexttenyears.The airport serves 17 million passengers per year and has the largestairportfireserviceinBrazil,with180firefighters.

August

opens a training centre in belgiumFalck opens a training centre in Ostende, Belgium, aimed at trainingmaritimestaff.Atthetrainingcentre,peopleareinstructedinhowtohandletheirownsafetyaswellasthatoftheir colleagues.

October

Falck opens alarm centre in indiaFalckopensanewalarmcentreinDelhi,India,tobetteras-sisttravellersandexpatriates.Moreover,FalckhasalarmcentresinDenmark,China,Norway,SwedenandtheUnitedStates,fromwhichFalckstaffcoordinateservicessuchas24/7monitoring of hospital stays, and evacuation and repatriation services.

November

Falck buys denmark’s leading provider of psychiatric treatmentFalckHealthcarebuysamajoritystakeinSirculus,Denmark’sleading provider of psychiatric services to local and regional authorities and corporate customers, focusing on treating stress, anxiety and depression.

December

Falck wins ambulance contracts in denmark FalckwinsacontractforallambulanceservicesinRegionZealandinDenmarkandthemaximumpossiblelocalareacontractsforambulanceservicesintheCapitalRegionofDenmark.

Management review | Falck Annual Report 2014 7Management review




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8 Falck Annual Report 2014 | Management review

Business areas and their performance

AssistanceFalck is the largest provider of assistance services in the Nordic region to car and home owners. the services provide people with the greatest possible safety and security, either by preventing accidents or by providing fast and competent assistance when accidents happen. Assistance services are often subscription-based. As an example, Falck helps car owners whose vehicle has broken down: in most cases, Falck staff can repair the car on the spot. And Falck helps home owners with everything from water in the basement to snow on the roof.

EmergencyFalck is the largest international ambulance service provider in the world. Falck provides ambulance services to people on five continents in close collaboration with the authori-ties. Falck operates 2,300 ambulances treating more than four million sick or injured people every year. Private citizens also made increasing use of home calls by Falck doctors and visited Falck’s medical and healthcare clinics. Falck is also the world´s largest international fire-fighting operator, with ac-tivities in Europe, Latin America and Asia.

In the Nordic countries and Estonia, 1.85 million people and 100.000 companies subscribe to Falck assistance services, mainly for their vehicles and homes.

The number of rescue officers, nurses and doctors in Falck grew to 13,753 in 2014.

56% 22%

48% 27%

1,950,00013,753

Share of Group revenue Share of Group revenue

Share of Group EBITA Share of Group EBITA

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Contentber: bUSineSS AreAS


HealthcareFalck is the largest private provider of healthcare services in Scandinavia and helps companies and organisations keep their employees and citizens healthy and able to function. An important part of Falck Healthcare’s activities consists of preventing illness, stress and strain. the goal is to en-sure that each individual has a better, longer and healthier worklife. this also means greater job satisfaction in the workplace, as well as lower costs related to illness, lower public-sector costs for social security, and lower costs for in-surance companies, saving money on claims resulting from a reduction in or loss of working capacity, for example.

Safety ServicesFalck is the world’s largest provider of rescue and safety training, providing courses and services at 38 training centres in 20 countries on five continents. the training is aimed at the offshore industry and the maritime sector, but the wind energy, chemical and aviation industries also make use of Falck’s facilities and services. At the training centres, people are instructed in safe behaviour to help avoid accidents in the workplace, and they are taught how to react correctly – also under extreme conditions – if accidents do occur. In addition, Falck has a number of training centres specially designed for training firemen in advanced fire prevention and fire fighting.

In 2014, Falck trained 370,000 people, especially offshore staff, to mind their own safety as well as the safety of their colleagues.

Three million people in Denmark and Sweden have access to Falck’s healthcare services.

13% 9%

12% 13%

370,000

Share of Group revenue Share of Group revenue

Share of Group EBITA Share of Group EBITA

3,000,000

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AT The heArT oF FAlCKWoRKING IN CLoSE CoLLABoRAtIoN WItH tHE AutHoRItIES, FALCK PRovIDES AMBuLANCE SERvICES IN 19 CouNtRIES WoRLDWIDE. EACH yEAR, FALCK RESPoNDS to MoRE tHAN FouR MILLIoN CALLS: to HELP HEARt AttACK vICtIMS, vICtIMS oF tRAFFIC ACCIDENtS, WoMEN WHo SuDDENLy Go INto LABouR, CHILDREN WHo HAvE BEEN HuRt, ELDERLy PERSoNS NEEDING RELIABLE tRANSPoRtAtIoN to tHE DoCtoR, AND MANy otHERS.

At tHE HEARt oF FALCK’S ACtIvItIES ARE AMBuLANCE SERvICES, AND tHAt IS WHERE FALCK’S CoRPoRAtE vALuES, EFFICIENt, RELIABLE, CoMPEtENt, HELPFuL, ACCESSIBLE AND FASt, WERE FoRGED.

eMerGenCy

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Contentber: eMerGenCy

Quick help is double help

the difference between life or death can be just seconds, and that is why Falck ar-rives quickly at the site of an accident or emergency illness. Moreover, Falck always provides its staff with the best technology and the highest level of training so they can provide fast, competent and efficient help to people in an emergency.

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Emergency

DKKmillion 2014 2013

emergency Revenue 8,688 7,958Revenuegrowth 9.2% 7.5%Organicgrowth 8.6% 7.7%EBITA 552 474 EBITAmargin(%) 6.4% 6.0%

FAlCK iS The world’S lArGeST INtERNAtIoNAL AMBuLANCE oPERAtoR AND tHE WoRLD’S LARGESt FIRE SERvICES PRovIDER. PEoPLE IN 33 CouNtRIES WHo ARE ILL oR HAvE BEEN IN AN ACCIDENt RECEIvE ASSIStANCE FRoM FALCK’S 13,753 RESCuE oFFICERS, NuRSES AND DoCtoRS

Organicgrowthwas8.6%,attributabletogrowthinallre-gions, but primarily to an increase in the number of customers inLatinAmerica,thenewambulancecontractswonin2013inSlovakia,andasubstantialnumberofnewfire-fightingcon-tracts.RevenuegrowthwasalsosatisfactoryinDenmark.

In the United States,Falcknowprovidesambulanceservicesin 12 states and has more than 3,700 employees. The com-panygeneratedgoodorganicgrowthin2014,drivenbyanincreaseinactivitiesmainlyinCalifornia,MassachusettsandWashington.Falckwonpatienttransportationcontractsinthestates of Florida, Pennsylvania and Washington, and began providingemergencyambulanceservicesinMaineandWash-ington.

A total of 976,000 people in latin AmericanowhaveaccesstoassistancefromFalckiftheybecomeillorinjured.Thisrep-resentsayear-on-yearincreaseof7%.Falckprovidesambu-lance, doctors’ and healthcare services in Colombia, Ecuador, ElSalvador,Panama,UruguayandVenezuela.In2014,Falck

Operating 2,300 ambulances, medical emergency response vehicles and patient transportation vehicles, Falck comes to theaidofillandinjuredpeopleonfivecontinents.Inanum-berofcountries,Falckhealthcareworkersalsoassistprivateindividuals in their home or treat them at medical and health-careclinics.In2014,Falcksuccessfullywonanumberofnewcontractsandsubstantiallyexpandeditsactivitieswithinthisfield.

Inrecentyears,Falckhasfocusedonofferingfire-fightingservices and related training and advisory services to high-risk industries and airports, services based on experience accu-mulatedfrommorethanonehundredyearsoffire-fightingservicesprovidedinclosepartnershipwiththepublicauthori-tiesinDenmark.Asaresultofthisfocus,Falcksignedseveralnewcontractsthispastyearforindustrialfirefightingallovertheworld.

Financially,theyear2014wasagoodoneforFalck’semer-gencybusiness.Revenueroseby9.2%toDKK8,688million.

• Wonanumberofambulancecontracts

• Signedseveralcontractsforindustrialfirefighting

• Openednewmedicaland healthcare clinics in a number of countries





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strengthened its position in Colombia by acquiring the largest patient transportation company in Bogotá, a company that also provides home-care services, thus expanding its presence in Colombia to a total of 14 cities. In Chile, Falck provides res-cue services, medical clinics and safety training for the mining industry.In2014,FalcksignedacontractinBraziltoprovidefire-fightingservicesattheinternationalairportinRiodeJaneiro.Thecontractwillrunfortenyearsandcomprises180firefighters.

Falck continued its expansion in Asia.InIndia,Falckwontwocontractsforfire-fightingservicesandopenedanadditionalsixmedicalclinicsinremotelocations,nowoperatingatotalof 25 of this type of clinic for mining companies, construction groups, energy companies, etc.

In AustraliaandPapuaNewGuinea,Falckprovidesambu-lanceservices,firefighting,medicalclinicsandsafetytrainingtothemining,oilandgasindustries,whichareoftenlocatedin remote areas and therefore need on-site emergency re-sponse preparedness. In 2014, Falck also began a partnership withtheEdithCowanUniversityinPerthtoestablishdistanceeducation programmes, for example for paramedic services

revenueDKKmillion

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9.2% 8.6% 2,300From 2013 to 2014, revenue grew by

the organic growth rate was

the number of ambulances rose to

In 2014, Falck signed a number of new con-tracts for industrial fire services to compa-nies in Europe, Latin America and Asia





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Falck’s activities in the rest of europe included a number of contractsawardedaswellasseveralacquisitions.

FalckwonnewambulancecontractsinGermany,Poland,Slo-vakiaandSwedenintenderprocesses,andopenedfournewmedical clinics in Poland.

In2014,FalckexpandeditsactivitiesintheCzechRepublicwiththeacquisitionofBaukomplex,apatienttransportationcompanywith55employees.Moreover,Falckenteredtheambulance services market in France through the acquisition ofFrench-basedFineta,a270-employeecompanywhichalsospecialises in transporting patients.

Falck’sfocusonindustrialfirefightingresultedinaconsider-ablenumberofnewcontractsinBelgium,Germany,theNeth-erlands, Portugal, Turkey and the United Kingdom: e.g. Falck nowprovidesfire-fightingserviceswith65firefightersattheinternational airport of Lisbon.

Toexpanditsplatformforindustrialfirefighting,Falckac-quired parts of UK-based Sembcorp Utilities, i.e. the compa-ny’sfire-fightingoperationswithjustover100employees.

Operatingprofit(EBITA)wasDKK552million,ayear-on-yearimprovementofDKK78millionasaresultofthegrowthinrevenue.

forFalckstaffinternationally.Thegoalisalsotodevelopascientificallybasedmodelforadvancedtelemedicineandin-struction in the use of telemedicine technology.

Eighty-six per cent of the population of denmark are po-tentialusersofFalckambulanceservices.In2014,FalckwoncontractsintenderprocessesconductedbythreeofthefiveDanishregions–theCapitalRegionofDenmark,theNorthDenmarkRegionandRegionZealand–inadditiontotheCentralDenmarkRegion,forwhichFalckwasawardedthecontract in late 2013.

Falckprovidesfire-fightingservicesintwo-thirdsofallDan-ishmunicipalities.In2014,tenderprocesseswereconductedforanumberofmunicipalfire-fightingservices,andFalcknotonlywonallitspreviouscontractsagain;italsowoncon-tractswithnewmunicipalities,includingthemunicipalityofBornholm. The municipalities generally demand cost savings infire-fightingservices,whichmeansthatFalckisconstantlyworkingtofindlocallycustomisedsolutionsthatensuremoreflexibleandlessexpensivefire-fightingservices.

FALCK’S FoCuS oN INDuStRIAL FIRE FIGHtING RESuLtED IN A CoNSIDERABLE NuMBER oF NEW CoNtRACtS

AustraliaFalck services include ambulance services to the Australian mining industry, which needs on-site emergency response preparedness.





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EIGHty-SIx PER CENt oF tHE PoPuLAtIoN oF DENMARK ARE SERvICED By FALCK AMBuLANCE SERvICES IF NEEDED

4,000,000More than four million people worldwide received assistance from Falck ambulance officers in 2014.





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FAST ASSiSTAnCeFALCK StAFF PRovIDES FASt RESPoNSE WHEN AutoMoBILE SuBSCRIBERS NEED tHEM. tHE RESCuE oFFICERS CAN uSuALLy SoLvE CAR PRoBLEMS oN tHE SPot, ENSuRING tHAt tHE SuBSCRIBERS CAN CoNtINuE tHEIR jouRNEy.

HoME oWNERS ALSo BENEFIt FRoM FALCK SERvICES, WHICH INCLuDE ASSIStANCE IN PREvENtING DAMAGE FRoM WIND StoRMS, FLooDING AND GAS LEAKAGE AS WELL AS ASSIStANCE IF DAMAGE HAS oCCuRRED.

ASSiSTAnCe

Management review




Contentber: ASSiSTAnCe

Problem solver

Among the most frequent problems solved by Falck automobile staff is helping subscribers get back into their car if they leave the key in a locked car, or if the car’s electronic system fails and locks all doors. Falck Staff know how to do this without damaging the vehicle.

Management review




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Assistance

FAlCK iS The leAdinG ProVider oF ASSiSTAnCe SerViCeS in The nordiC reGion, AND ItS oBjECtIvES ARE to PRovIDE ItS CuStoMERS WItH tHE GREAtESt PoSSIBLE SAFEty AND SECuRIty. WHEtHER A CAR HAS BRoKEN DoWN, A BASEMENt IS FLooDED oR BuRGLARS PAy AN uNINvItED vISIt, BotH INDIvIDuALS AND CoMPANIES CAN CouNt oN ASSIStANCE FRoM FALCK


Assistance Revenue 3,012 3,004Revenuegrowth 0.3% 2.5%Organicgrowth 1.4% 4.4%EBITA 308 311EBITAmargin(%) 10.2% 10.4%

InSweden,Falcksucceededinboostingconsiderablythenum-berofautomobilesubscriptions,andinDenmarkandNorwayFalck sold a substantial number of alarm solutions.

InDenmark,Falck’snewconceptfordamagecontrolserviceswasseriouslytestedafteranumberoftorrentialdownpours.FollowingthecloudburstinCopenhageninthesummerof2014, 40 damage control teams helped remedy 800 emergen-cywaterdamagesituationsinhomes,businessesandpublicinstitutionsforaperiodoftwoandahalfdays.

TheseeffortspresumablyhelpedconvinceasteadilygrowingnumberofpeopleinDenmarktotakeoutahomesubscrip-tionthatensuresthemfastassistanceintheeventofwindorrainstormsorheavysnowfall.In2014,anadditional3,000homesinDenmarkwerecoveredbyaBoligRedning(home

In the Assistance business, Falck provides help to private individuals, companies and public authorities in preventing accidentsanddealingwiththesituationifanaccidentshouldoccur.Thefocusisprimarilyonassistingcustomerswiththeirvehicles and homes, but Falck also provides assistance in con-nectionwithhealthissuesandtravelactivities.

FalckAssistanceservicesareofferedinDenmark,Estonia,Fin-land,NorwayandSweden,whereclosetotwomillionprivateindividuals, companies and public-sector institutions have Falck subscriptions.

In2014,revenuegeneratedbytheAssistancebusinesswasDKK3,012million,whichwasonalevelwithrevenuein2013duetolowerrevenuefromroadsideassistanceinNorwayandSwedenasaconsequenceofthemildwinterof2014.

• Asubstantialincreaseinautomobile subscriptionsinSweden

• ContinuedsuccesswithFalckAlarm inDenmarkandNorway

• Assistancetomorepeoplein Denmarkinsevereweatherconditions

• NewFalckGlobalAssistancealarmcentres inNorwayandIndia





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emergencyservice)subscription,partlybecauseitisnowof-feredatadiscounttogetherwithaFalckAlarm,whichsoundsan alert not only in the event of a burglary, but also in the caseofwaterdamage,smokeortoomuchcarbonmonoxide.FalckwillbelaunchingadditionalBoligRedningservicesinthe course of 2015 that are designed to prevent damage to houses and other buildings resulting from climate change.

Withinroadsideassistance,customerscannowputtogetherasubscriptiontomeettheirspecificneeds.Falckexpectstolaunchanumberofnewinitiativesinthisfieldgoingforward.In this connection, Falck is currently testing a small device called the Falck Connect that, once installed in a vehicle, can detectaproblemwiththevehiclebeforeitbecomesanissue.Forexample,itwillalertthedriverifthebatteryislowortheenginetemperatureiscritical,anditwilllogthehigh-Gimpactifthevehicleisinvolvedinanaccident,allowingFalcktore-quest assistance immediately.

With Falck Global Assistance, insurance companies and corpo-rate customers can ensure assistance to travelling employees worldwideandtoemployeeslivingabroad,forexample24/7monitoring of hospital stays, evacuation, repatriation and ad-vice on health, safety and security risks.

FalckGlobalAssistancecontinuedtogrowin2014,bothintheNordicmarketandglobally.Thisgrowthcomesfromnewinsurance customers, from global humanitarian organisations andfromEUdelegations.Moreover,FalckGlobalAssistanceexpandeditsglobalnetworkofalarmcentresbyopeningcentresinNorwayandIndia.FalckGlobalAssistancealsohasalarmcentresinDenmark,Sweden,ChinaandtheUnitedStates.FalckGlobalAssistancehelped7%moretravellersin2014 than the year before, and this rise in activity level con-

tributed to an increase in revenue. The assistance provided took the form of, among other things, advisory services, train-ing and assistance provided to travellers and companies in connectionwiththeoutbreakofEbolainWestAfrica.

Operatingprofit(EBITA)wasDKK308million,orDKK3millionlowerthanin2014,adverselyaffectedbyincreasedinvest-mentinensuringfuturegrowth.

revenueDKKmillion

Organic growth%

SubscribersNumber

0

600

1,200

1,800

2,400

3,000

2010 2011 2012 2013 2014

0

2

4

6

8

10

2010 2011 2012 2013 2014

0

500,000

1,000,000

1,500,000

2,000,000

2010 2011 2012 2013 2014

Revenue in 2014 was


the number of subscribers was

dKK million 3,012 1.4% 1,950,000

Falck Global Assistance helped 7% more travellers in 2014 than the year before, for example with repatriation in the event of illness





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inTerdiSCiPlinAry APProAChFALCK HEALtHCARE HELPS PEoPLE AND WoRKPLACES SoLvE HEALtH PRoBLEMS, ALSo BEFoRE tHEy ARISE. tHE PuRPoSE oF FALCK’S HEALtHCARE SERvICES IS to LIMIt tHE LoSS oF CAPACIty to WoRK, A LoSS tHAt IN MoSt CASES CAN BE REDuCED CoNSIDERABLy By tAKING quICK ACtIoN.

BASED oN ItS HoLIStIC APPRoACH, FALCK HEALtHCARE WoRKS ACRoSS DISCIPLINES, uSING tHE SKILLS oF PERSoNS SuCH AS PHySIotHERAPIStS, CHIRoPRACtoRS, MASSAGE tHERAPIStS, PSyCHoLoGIStS, DoCtoRS AND NuRSES.

heAlThCAre

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Contentber: heAlThCAre

happy employees are a good investment

Falck Healthcare’s network of more than 1,000 certified psychologists held more than 230,000 consultations in 2014 with employees and managers of Scandinavian companies. the main point of these ef-forts is that happy employees work better and give companies a better bottomline.

Management review




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Healthcare

PEoPLE IN SCANDINAvIA CAN RECEIvE ASSIStANCE IN REMAINING HEALtHy BotH MENtALLy AND PHySICALLy. FAlCK iS SCAndinAViA’S leAdinG ProVider oF EMPLoyEE HEALtHCARE SERvICES


healthcare Revenue 1,829 1,206Revenuegrowth 51.7% 19.2%Organicgrowth 11.8% 13.6%EBITA 132 112EBITAmargin(%) 7.2% 9.3%

easy access to healthcare services, including appointments withtherightspecialistortherapist.FalckHealthcarealsoprovidesstaffingservicestopublic-sectorhealthcarework-placeswhensicknessabsenceorpeakworkloadnecessitatesextrastaff.

In 2014, Falck and TryghedsGruppen agreed to merge their healthcare activities, thereby creating Scandinavia’s largest provider of services that reduce sickness absence and im-prove people’s access to rehabilitation after sickness. As a re-sult of the merger, Falck Healthcare took over the companies PreviainSwedenandQuickCareinDenmark,andTrygheds-Gruppenacquired40%ofthesharesinFalck’sHealthcarebusiness.

Previa provides access to rehabilitation, health check-ups and improvedworkingenvironmentforalmostonemillionpeopleinSwedenthroughagreementswiththeiremployers.ThismakesPreviathelargestproviderofjob-relatedhealthcareservicesinSweden.

Falck’s Healthcare business is the leading provider of employ-ee healthcare plans covering more than three million people.

FalckHealthcarehasthreeprimaryareasoffocus:on-the-jobhealth,healthcarestaffingservicesandpublichealthcareandemployment partnerships.

Withinthesethreeareas,FalckHealthcare’semployeesworkacross disciplines to tailor healthcare plans to meet the re-quirements of each company, municipality, insurance or pen-sion company.

Thereisagreatdealofpressureonthepublicwelfaresys-temsinScandinaviatoday.FalckHealthcarewantstobeastrong private service provider that can provide assistance to both the public sector and companies in keeping their employees healthy and can help insurance companies reduce their costs for customers retiring early due to disability. The purpose of these services is to limit the loss of capacity to work,alossthatinmostcasescanbereducedconsiderablybytaking quick action. For this reason, Falck Healthcare provides

• MergedwithTryghedsGruppen’shealthcarecompanies,PreviaandQuickCare

• Signedanumberofnewcontractstoprovidehealthcare services

• AcquiredDenmark’sleadingprivate sector provider of psychiatric treatment





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QuickCarehelpspeopleinDenmarkandNorwayonpublicwelfarereducetheirperiodofillnessandreturntoworkear-lier, and is the largest provider of these services to municipali-tiesinDenmark.

ThemergerisreflectedintherevenuesoftheHealthcarebusiness,whichincreasedby51.7%toDKK1,829million.However,thisincreaseisalsotheresultofsubstantialorganicgrowthatarateof11.8%duetoamajorriseinemployeehealthandhealthcarestaffingservices.

InDenmark,FalckHealthcaresignedagreementsonhealth-careservicesto2,000,000people,whilemorethan612,000people have got a healthcare plan via their labour market pension plan, and almost 332,000 people have coverage throughtheHurtigDiagnose(“QuickDiagnosis”)scheme,whichprovidesrapidaccesstoanexaminationanddiagnosisby specialist doctors.

In2014,FalckHealthcaregainedexperienceinoperatingtwomedicalclinicsinDenmark,oneinHurupandoneinThisted,andwonacontracttooperateamedicalclinicinSundsaswell.

In the autumn of 2014, Falck Healthcare signed an agreement totakeoveramajoritystakeinSirculus,theleadingprivate-sectorproviderinDenmarkofpsychiatricservicestomunici-palities, regions and companies.

InSweden,anagreementwassignedwithLänsforsäkringerfor the provision of physical treatment, and agreements for preventivehealthcareservicesweresignedwithNordeaandIKEA.AndinNorway,Falck’snetworkoftherapistsexpanded

considerably,withseveralcontractssignedfortheprovisionof both physical and psychological treatment.

Operatingprofit(EBITA)wasDKK132million,ayear-on-yearincreaseofDKK20millionmainlydrivenbyorganicgrowth.Earningsintheoperationsacquiredwereadverselyaffectedby substantial integration costs.

revenueDKKmillion

Organic growth%

Healthcare professionalsNumber

0

400

800

1,200

1,600

2,000

2010 2011 2012 2013 2014

-10

-5

0

5

10

15

2010 2011 2012 2013 2014

0

1,500

3,000

4,500

6,000

7,500

2010 2011 2012 2013 2014

From 2013 to 2014, revenue grew by


the number of healthcare staff rose to

51.7% 11.8% 6,541

300In Scandinavia, Falck Healthcare has more than 300 healthcare clinics which help people keep healthy and reduce sickness absence.





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TrAininG SAVeS liVeSEMPLoyEES WoRKING oN oFF-SHoRE oIL AND GAS INStALLAtIoNS, oN BoARD vESSELS AND IN SEvERAL otHER INDuStRIES ARE oFtEN FAR FRoM ASSIStANCE IN tHE EvENt oF AN ACCIDENt.

FoR tHIS REASoN, It IS NECESSARy FoR tHEM AND tHEIR EMPLoyERS to BE ABLE to PRovIDE FIRSt AID, FIGHt FIRES AND EvACuAtE PEoPLE quICKLy AND SAFELy. At tRAINING CENtRES ALL ovER tHE WoRLD, FALCK INStRuCtoRS uSE REALIStIC SuRRouNDINGS to tRAIN PEoPLE IN SAFEGuARDING BotH tHEIR oWN SAFEty AND tHAt oF tHEIR CoLLEAGuES.

SAFeTy SerViCeS

Management review




Contentber: SAFeTy SerViCeS

Getting to the surface

the training includes practice in how to safely evacuate from a helicopter after an emergency landing, when it is sinking at sea. A mock-up helicopter submerged in a pool is used to train course participants in how to evacuate through the windows under water under careful instruction and monitoring.

Management review




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Safety Services

EMPLoyEES FRoM tHE oFFSHoRE INDuStRy IN PARtICuLAR CAN tRAIN At FALCK’S 38 tRAINING CENtRES ARouND tHE WoRLD IN SAFE BEHAvIouR AIMED At AvoIDING ACCIDENtS IN tHE WoRKPLACE. FAlCK iS The world’S lArGeST ProVider oF reSCUe And SAFeTy TrAininG


Safety Services Revenue 1,366 1,316Revenuegrowth 3.8% 13.1%Organicgrowth 5.5% 11.3%EBITA 147 215EBITAmargin(%) 10.7% 16.3%

Falck also provides training to public-sector and private-com-panyfirefightersinmanycountriesinpreventingandfightingmanydifferenttypesoffires.Thistrainingisprovidedatfivespecially equipped training centres in the Netherlands.

Theyear2014wasadifficultonefortheSafetyServicesbusi-ness,withoilcompaniescuttingtheirexplorationactivitiesasearlyasthebeginningoftheyear.Decliningoilpricesfrommid-yearintensifiedthiseffect,withmanyoilandgascompa-niesputtingthebrakesonplannedprojectsandnotlaunchingnewones.ExplorationoffthecoastsofNorwayandBrazilwashitparticularlyhard.

Despitethegenerallynegativetrendintheoilindustry,rev-enue generated by the Safety Services business increased byDKK50milliontoreachDKK1,366million.Thisgrowthismainlyattributabletotheopeningofanumberofnewtrain-ingcentresandtheintroductionofnewcoursesandservicestooffsetthefallinglevelofactivity.

Whatisthefastestpossiblewaytoevacuateaburningoilrig?Howcanyougetoutofahelicopterunhurtduringanemer-gencylandingatsea,afterthehelicopterstartssinking?Howshouldthecrewofashipinopenseaworktogetherduringastorm?

ThesearejustsomeofthequestionsansweredatFalcktrain-ingcoursesallovertheworld–notjustinwords,butbyat-tendees training the right solutions in realistic surroundings. Courseattendeesaremainlystafffromtheoffshoreandmaritimeindustrieswhoaretrainingtomindtheirownsafetyaswellasthesafetyoftheircolleagues.Butalsothechemicalindustry,airlines,thewindenergyindustryandminingcom-paniesusethisspecialsafetyservice,whichwasdevelopedinclosecollaborationwithinternationalcustomersandbasedonFalck’smorethanonehundredyearsofexperiencewithrescue services.

Falcktrainingcentresarelocatedclosetotheworld’soff-shoreoilandgasfieldsin20countriesonfivecontinents.

• Trainedlargest-evernumberofpeople–370,000–insafety,rescueandfirefighting

• OpenedanewtrainingcentreinBelgium forstaffinthemaritimeindustry

• Openednewoffshoretraining centresintheNetherlandsandQatar





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However,asaresultoftheintroductionofnewandshortercourses to compensate for the falling level of activity, Falck trainedmorepeoplein2014thaneverbefore.Intheoffshorearea,atotalof341,800peopleweretrainedataFalckcentrein 2014, up from 300,500 people in 2013. Especially the cen-tres in the Netherlands, the UK and the United States trained morepeople,whilethecentresinBrazil,NigeriaandNorwaysawadeclineinthenumberofcourseparticipants.

Falckexpandeditspositionastheworld’sleadingproviderofrescueandsafetycoursesin2014,partlybyopeninganewtraining centre in the Netherlands in response to the demand fortrainingfromoffshorecompaniesintheregion,alongwithatrainingcentreinQatar,wherethefocusisonadvancedfiretrainingforstaffinthegasandchemicalsindustries.Falckalso opened a training centre in Belgium aimed at providing trainingtostaffinthemaritimeindustry.

Other services provided by Safety Services include courses in howcompaniesandpublicauthoritiescanbesthandlemajorcrisis situations in order to mitigate the risk of loss of life and property.In2014,SafetyServicessignificantlyexpandedthispartofitsbusinessandisnowprovidingmajoremergencymanagement services from 20 facilities, up from 12 facilities in 2013. Next year, Falck expects to have 25 of these special facilities available for its customers.

In2014,closeto30,000firefightersfromallovertheworldcompletedadvancedfiretrainingcoursesatFalck’sDutchtrainingcentres,whicharespeciallyequippedforthispur-pose.

This brought the total number of people trained in 2014 to 370,000,a9.4%year-on-yearincrease.

Operatingprofit(EBITA)wasDKK147million,comparedwithDKK215millionin2013.Thedropinactivitylevelmeantthat the number of participants per course declined in 2014. More-over,theestablishmentofnewtrainingcentreshadanadverseimpactonprofit.

revenueDKKmillion

Organic growth%

Course participantsNumber

0

300

600

900

1,200

1,500

2010 2011 2012 2013 2014

-3

0

3

6

9

12

2010 2011 2012 2013 2014

0

80,000

160,000

240,000

320,000

400,000

2010 2011 2012 2013 2014

From 2013 to 2014, revenue grew by


the number of course attendees rose to

dKK million 50 5.5% 370,000

30,000In 2014, Falck trained close to 30,000 firemen in advanced fire fighting.





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Reportoncorporatesocialresponsibility

Corporatesocialresponsibility(CSR)atFalckisdefinedasbusinesspracticesthatimproveFalckasaworkplaceandben-efitsocietybeyondwhattheGroupisformallyrequiredtodounderthelawsandregulationsapplicableinthegeographieswheretheGrouphasoperations.

Againin2014,newacquisitionsandnewcontractsincreasedthe diversity in cultures and geographies that is part of the Group’s strong foundation and inspiration. Irrespective of cul-tureandgeography,CSRisattheheartofFalck’sbusiness.

The basic approach to this ethical business foundation is reflectedinthefactthatFalckstaffcontinuetoprovideassis-tance according to the commitment stated by the founder of Falck,SophusFalck:Falckemployeesalwayshelppeopleandanimalsinemergencysituations–whetherornotpaymentcan be expected.

Social and environmental considerations are deeply rooted in and integrated into Falck’s business models and operations initsday-to-dayinteractionwithlocalcommunities,businesspartners, customers and other stakeholders in an endeavour to promote health, safety and a general improvement in social standardsinthecommunitiesweprovideservicesto.Falck’smis-sion is to actively prevent accidents, disease and emergency situ-ations, to rescue and assist people in emergencies quickly and competentlyandtorehabilitatepeopleafterillnessandinjury.Accordingly, Falck’s business model as such represents corporate social responsibility that has been systematised – and serves as a foundationforsustainablebusinessdevelopmentaswell.

Assumingsocialresponsibilityisalsotodowhatisnotre-quired or expected – things that Falck does not take money for, but does because it is the right thing to do, and because the organisation has the ability and opportunity to do so.

Falck’s Code of Conduct

Asaminimum,Falckrequiresallitsbusinessentitiestocomplywithapplicablelegalrequirementsintheircountries ofoperationandwiththeGroup’sCodeofConduct.

TheFalckCodeofConductisbasedontheUnitedNationsGlobalCompact,whichdealswiththefollowingareas:

human rights

The company should• supportandrespecttheprotectionofinternationallyproclaimedhumanrightswithintheareainwhichitoperatesandhasinfluence

• makesurethatitisnotcomplicitinhumanrights abuses

labour standards

The company should• upholdthefreedomofassociationandeffective

recognition of the right to collective bargaining• supporttheeliminationofallformsofforcedand

compulsory labour• supporttheeffectiveabolitionofchildlabour• supporttheeliminationofdiscriminationinrespect

of employment and occupation

environment

The company should• supportaprecautionaryapproachtoenvironmental

challenges• takestepstopromotegreaterenvironmental

responsibility• encouragethedevelopmentanddiffusionof

environmentally friendly technologies

Anti-corruption

The company should• worktocounterallformsofcorruption,

including extortion and bribery

These practices apply across all Falck business areas.





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ber: CorPorATe SoCiAl reSP

• Employmentconditions:Falck’scontributiontoensuringlong-termrelationshipswiththeemployeesoftheGroup

• Occupationalhealthandsafety:Falck’scontributiontoen-suringagoodphysicalandmentalworkingenvironment

• Environment:Falck’scontributiontoasustainableenviron-ment

• Businessethics:Falck’sinsistenceonzerotoleranceofex-ploitation, corruption and bribery

• Society:Falck’scontributiontothedevelopmentofhealthandwell-beinginthesocietiesofwhichweareapart

In2014,Falckworkedtoimprovetheframeworkformakingcorporate social responsibility an even greater part of the Group’s business activities and strategy, also by continuing to workonanchoringitsCSRpoliciesintheGroup.

The focus in this respect included the establishment of an overall,strategicallyfoundedCSRcommitteewhichistoen-surethecontinuingdevelopmentofthestrategiesforCSRacross all the Group’s business areas.

ItisimportanttoFalckthatitscorporatevalues–efficient,reliable, competent, helpful, accessible and fast – take root in all its countries of operation.

Employment conditions

Falck’sservicesareoftenrelatedtoeventsinwhichtheindi-vidual Falck employee is providing assistance in situations that can be marked by insecurity and anxiety.

ThisrequiresFalckstafftopossessgoodsocialskillsaswellasknowledge,competenciesandgoodpersonalvalues.These

valuesarekeyinsuccessfulhandlingofthejobineachindi-vidual case of customer and patient contact.

Falckthereforebelievesinlong-termrelationshipswithitsemployees in order to build up these skills and develop pro-ceduresforworkingtogetherintheindividualteams.Alsoforthesereasons,itisimportanttoFalcktokeepthestaffturn-overratelow.

We hold a fundamental belief that responsibility for good ser-vice should be as decentralised as possible because our em-ployees have the ability and desire to make the right choices intheirpersonalinteractionwithcustomers.

ThegoalsforFalck’sinitiativesinthisfieldare

• toreducetherateofstaffturnover• toreducebothlong-termandshort-termsicknessabsence• toincreaseemployeesatisfaction• toimproveleadershipquality

With this as a starting point, Falck implemented a number of specificmeasuresin2014toimproveandexpandemployeecompetenciesandjobsatisfactioninanongoingprocess.

Surveysofemployeesatisfactionwereconductedin2014–bothworldwidewithinFalckSafetyServicesandinFalck’sDanishorganisation–coveringcloseto10,000staff.

TherateofsatisfactionwasgenerallyhighamongFalckem-ployees.

Code of Conduct

EnvironmentEmployment

conditionsSociety in generalBusiness ethics

Occupational health and safety

FalckhasdefinedanumberofpolicieswithintheareasbelowwhicharematerialtoFalck’scorporatesocialresponsibilityandbusiness.CompliancewiththeFalckGroup’sCodeofConducthas-inadditiontothespecificpolicy-beenimplementedasanintegral part of these supplementary policies:





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Thesurveysshowedthat84%agreedorfullyagreedinre-sponsetothequestionofwhethertheyweresatisfiedwiththeirjob.Similarly,80%agreedorfullyagreedthattheycouldrecommendthatothersapplyforajobwithFalck,and90%agreed or fully agreed that they expected to be employed withFalckoneyearfromthen.Theotherrespondentswerenotgenerallydissatisfied,with10%,16%and8%respectivelyresponding“neither/nor”tothesequestions.

The intention is to conduct similar surveys in the rest of the FalckGroupinthecourseof2015/2016.

FalckcontinuedtorollouttheFalckDebriefingprogrammein2014withaviewtopreventinginjuriesandreducingsick-nessabsence.FalckDebriefingisaprogrammethatsupportsthe ability of our employees to handle traumatic events on thejob.Theprogrammeincludestrainingofrescuestaffinsupportingcolleagues,debriefingbyqualifieddebriefers,andsettingupalocalorganisationtohandlemajoremergencyincidents.

FalckDebriefinghasalreadybeenlaunchedinSweden,theUnitedStates,Poland,DenmarkandSlovakia.In2014,roll-outof the programme continued in Latin America, initially in Uru-guay and Colombia.

Theaveragerateofsicknessabsencein2014was3.8%(2013:3.6%),andthestaffretentionratewas81%(2013:78%).

Occupational health and safety

Falck’s policy for occupational safety is to reduce physical and mentalinjurythroughgoodmanagementofoccupationalhealth and safety and through a transparent allocation of du-tiesandresponsibilitywhileensuringanappropriateprovisionof training and information.

Falckbelievesthatagoodworkingenvironment–onewhichdoesnotexposestafftoariskofoccupationalinjury–isaprerequisite for attracting and retaining highly competent employees.

ManyFalckemployeesworkonambulancesandinotherpatienttransportationservices,allofwhichinvolvefrequentheavy lifting.

Falckseekstopreventbackinjuriesandotherlifting-relatedproblems through physical training and instruction in transfer techniques, including e-learning programmes, a management focus on the topic, and the use of assistive devices.

Across Falck’s ambulance divisions, a special area of focus is thehandlingofoverweightpatients.Newtransportsystemsand stretcher systems have been introduced at many Falck stationsinordertoreducephysicalbackandjointstrainonstaff,andspecialeffortshavealsobeenmadetotrainambu-lancestaff.

An employer is responsible for ensuring that employees have soundworkingconditionswithrespecttohealthandsafety.Falckishighlyawareofthefactthatthisresponsibilityalsoap-pliestogoodandsafeworkingconditionswhenitsemployeesaretravellingortransferredabroad,andwetakethisrespon-sibility very seriously.

Forthisreason,FalckstaffhaveaccesstoFalckGlobalAs-sistance analysis data on safety and health conditions in the individual countries. When employees have to travel to par-ticularlyriskyareas,theyareofferedcoursesinhowtohandlethese risks.

Falck Safety Services provides courses and training in occupa-tionalhealthandsafety.Inthisfield,thereisalsoaclosecor-relationbetweentheexperienceFalckgainsasasustainableGroupandtheknowledgeandexperiencethatispassedonbythe organisation to our business partners in both the private and public sectors.


• toreducethenumberofoccupationalinjuriesandevents• toreducethenumberofinjuriesinconnectionwithFalck’s

activities • tobethesafestandmostreliableprovideroftheseservices• toinvolvetheemployeesinmaintaininghighsafetyandworkingenvironmentstandards

Falck’srateofinjuriesresultinginabsencewas12.6permil-lionworkinghoursin2014(2013:15.7)acrosstheentireGroup.





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Environment

Falck’sactivitiesarelocatedatmanydifferentsitesworld-wide,includingFalckstationsandtrainingcentres,andtothisshould be added a very large number of vehicles at Falck’s disposal.

For this reason, the Group is dedicated to ensuring it continu-allyworkstoimprovetheenvironmentwealllivein.

Falck is obligated to operate in an environmentally respon-siblemannerandtoreducetheharmfuleffectsitsactivitiesmay have on the local community and the environment in general. Environmental responsibility and sustainable conduct arethuspartofthejobforFalck’smanagers.


• toreduceourpower,waterandheatingconsumption• toreduceourfuelconsumptionaswellasourairpollutionandwastewaterdischarge

• touseenvironmentallyfriendlytechnologies,workpro-cesses,substancesandmaterialsinconnectionwithnewpurchasesandwhenrestructuringexistingworkprocesses

• toaimforahighrateofrecyclingandthelowestpossibleenvironmentalimpactinconnectionwithwastehandling

Across entities in Falck’s business areas, there is a great deal ofawarenessoftheimportanceofrecycling,alsoofpaperandofficesupplies.

Similarly,theGroup’svehiclesarenowcleanedwithspecialattentionpaidtokeepingtheconsumptionofwateraslowaspossible.

RefurbishmentofseveralFalckSafetyServicestrainingcen-treswasalsoundertakenin2014toincreasetheirreuseofwaterbycollectingitandrecirculatingitaftertreatment.

AspecialexampleofFalck’senvironmentalawarenesscomesfromtheUSemergencydivision.InCalifornia,Falckisthefirstprovider of ambulance services to have developed and in-stalled solar energy in an ambulance. A special solar panel on the roof of the ambulance stores solar energy used to supply theambulancewithelectricity.Moreover,ourfocusonusing

a minimum amount of heating in garage facilities continued in 2014.

AtFalckinDenmark,initiativescontinuedundertheheadlineof“DriveGreen”,aprojectthathasresultedinthedevelop-mentofstaffinformationmaterialsuchascalendars,folderscontaining good advice, a special intranet portal, monthly an-nouncements, etc. This material has been made available to allrescueofficersinDenmarkandresultedinastrongfocuson environmentally sound and safe driving.

Severalvehicleshavebeenfittedwithspecialmeasuringequipmentthatallowsanalysisofthedrivingpatternsofeachdriver,whichisthenfollowedbytraininginenvironmentallyfriendly driving techniques. The equipment and the system-aticfollow-uphaveresultedinanimprovementinfuelecono-my,withthesevehiclesnowdriving11%furtheroneachlitreoffuelcomparedwiththeaverageforsimilarvehicleswithoutmeasuringequipmentandfollow-ups.

Moreover,whenambulancesarereplaced,wefocusonre-placingthemwithenvironmentallyfriendlyvehicles.Amongotherthings,asizeablenumberofambulancesinoneregionofDenmarkhavebeenreplacedbyvehiclesthatdrive15%longer per litre of fuel than the national average.

In its Emergency business operations, Falck drove 173 million kilometres(2013:173millionkilometres)withanaveragefuelconsumptionofroughly6km/l(2013:6km/l).Itshouldbenoted that emergency responses have an adverse impact on theaveragefueleconomy,andthattheconsolidatedfigureisaffectedbysubstantialregionaldifferencesinrequirementtothesizeofemergencyresponsevehiclesandtheweightintheGroup of each country of operation.

Business ethics

Falckdefinesbusinessethicsasthebroadapproachtohowthe Group’s values are translated into day-to-day activities in theorganisationor,inotherwords,theethicalapproach.

Falck’s business ethics are based on its six deeply rooted values:efficient,reliable,competent,helpful,accessibleandfast.





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Falck’s ethical approach is rooted in the culture and collabora-tionamongfirefightersandambulancestaffatthesceneofanincident,healthcarestaffhelpingapatient,rescueofficersproviding roadside assistance and helping drivers continue ontheirjourney,andinstructorsteachingpeoplehowtolookafter themselves and help others in a crisis situation.

A characteristic feature of the services Falck provides is that theydependcompletelyontheeffortsoftheindividualstaffmembers,whohavetobeabletorelyoneachotherandas-sumethateveryonewilldoexactlyasagreedandastheyaretrained to do. For this reason, Falck does not compromise on thetrainingofitsstafforthesafetyproceduresinplacetoprotectstaffandcustomers.Itisimportantthatstaff,custom-ers and business partners can rely on Falck.

Providingcareforfellowhumanbeings–anddoingsoquicklyandactively–hasalwaysbeenanimportantfactorinFalckstaffcareerchoices.ThisvalueisdeeplyrootedinFalck’smis-sion,whichalsoincludesrescuingpeopleinemergencysitua-tions.

Thecommunitieswearepartofandthecustomerswehavecontractedwithmustknowthatwewillprovideservicesasagreed and of a quality matching or exceeding their expecta-tions.NewemployeeslearnaboutFalck’svaluesaspartoftheirjobintroduction.

As a natural part of its corporate values, Falck has a policy of zerotoleranceofcorruption.Fromanethicalpointofview,corruption is considered to be destructive to personal integ-rity – and harmful to society.

Inlate2014,Falck’snewwhistleblowerschemewasapprovedbytheregulatoryauthoritiesinDenmark,androll-outtoitsother countries of operation has begun.

Nocasesofnon-compliancewithFalck’scorruptionbanhavebeenidentified.

Society in general

Ever since Sophus Falck founded his rescue service in 1906, thedesiretomakeadifferenceinthelocalcommunitiesweare part of has been deeply rooted in Falck’s corporate values. Againstthisbackdrop,Falckhasalwaysbeenanintegralpartofthelocaldevelopmentofthecommunitiesweserve.


• tosupporthealth,educationandwelfareintheGroup’sef-forts to identify business opportunities

• tocontributetoeconomicdevelopmentandsupportwel-fareintheworldinthelongtermbyinvestinginnewmar-kets

• tocontributetoeconomicdevelopmentintheareaswhereFalck has operations

• toincreasetheawarenessofhealthandsafetyinordertopromote a healthier and safer society

Falckisinvolvedinsocialprojectsinmanycountrieswithaviewtoimprovingthehealthconditionsinthosecountries,whilealsoassessinganddevelopingitsbusinesspotential.

In Colombo, the largest city in Sri Lanka, Falck has set up an ambulanceoperationinpartnershipwiththeInvestmentFundforDevelopingCountriesandalocalpartner,withaviewto developing the pre-hospital area and thereby establish a marketforFalck.Untilnow,firstaidandpre-hospitaltreat-menthasonlybeenknowntoalimitedextentinSriLanka.Inaddition to day-to-day responses to alarm calls, much of the workdonesofarhasthusbeenintheformofanextensiveinformationcampaignabouttheimportanceofknowinghowto react correctly in the event of an accident.

InBenin,aprojecthasbeenstartedinpartnershipwithBørnefonden to generally improve the health of pregnant womenandofnewmothersandtheirbabies.Anotherprojectbegunin2014isaimedatincreasingknowledgeoffirstaidandhygieneinthelocalpopulation.Untiltheprojectisslatedtoendin2016,Falckwillbeteachingthelocalpopulationaboutfirstaid,hygieneandchildbirth.





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Inconnectionwiththisproject,aspeciallyadaptedtrainingprogrammehasbeendevelopedtosend16rescueofficerstothecountryeachyear,eachforaperiodoftwoweeks,inorder to ensure the quality of the training.

Inadditiontotheseone-offprojects,Falckalsorunsanumberofprojectstohelpyoungpeoplewhoneedextrasupportingaining a foothold in the labour market.

Moreover,Falckhasmanynewandcontinuingprojectsaimedat teaching and informing children and young people about firstaid.

Falckisalsoworkingtodevelopandimprovepre-hospitalworkworldwide,alsothroughestablishmentoftheFalckFoundation and Falck’s subsidies to the Foundation. As the firstorganisationofitskind,theFoundationworkstosupportresearchinthefieldofpre-hospitalmedicaltreatment,and,throughthiswork,alsohelpsdrawadditionalattentiontode-velopmentsinthefield.

Gender distribution in the management of Falck

It is the goal of the Falck Group to ensure a diversity in the GroupthatreflectsthecommunitiesweworkinandthatisalignedwiththerecruitmentpotentialinFalck’sareaofbusi-ness.

The Group aims to provide gender-equal opportunities at all management levels. The gender distribution in management positions should therefore, over a number of years, come to reflectthegenderdistributionwithintheGroup’sareasofbusiness.

Toensurethatthishappens,Falcklaiddownapolicyforthisarea in 2013 and rolled out a number of initiatives. As an example,itwasresolvedthattheGroupwantsbothgenderstoberepresentedwhenmanagementstaffisrecruited.ItwasalsoresolvedthatManagementwillevaluateonceayearwhetherthecurrentgenderdistributionintheGroupcanbe considered to be natural relative to the recruitment basis forstaffwiththerelevanttypeofskillsoreducationalback-ground.

EvER SINCE SoPHuS FALCK FouNDED HIS RESCuE SERvICE IN 1906, FALCK HAS BEEN AN INtEGRAtED PARt oF tHE LoCAL DEvELoPMENt oF tHE CoMMuNItIES WE SERvE





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Corporate governance

Falck’s management monitors corporate governance on a reg-ular basis. This is done to ensure that the Group is managed, bothinternallyandexternally,inamannerconsistentwithnationalandinternationalrulesandinlinewiththecorporatemission, and in a manner that matches the expectations of thedifferentstakeholdergroups,includingshareholders.

Corporate governanceAt Falck, corporate governance is considered a natural and crucial element in the achievement of the Group’s goals and strategy.

Although Falck is not a public listed company, the Group compliestoagreatextentwiththecorporategovernancerecommendations applicable to companies listed on the NASDAQOMXCopenhagenstockexchange.However,certainrecommendations are considered mainly to be relevant to a companywithabroaderownership.

board of directorsPursuanttoDanishlegislation,Falckhasatwo-tiermanagementsystemconsistingofaBoardofDirectorsandanExecutiveMan-agementBoard.TheBoardofDirectors’roleistosupervisetheGroup’s activities, development, management and organisation, whereastheExecutiveManagementBoardisresponsiblefortheGroup’sday-to-daydevelopmentandoperations.Thetwobodies are independent and do not have overlapping members.

TheBoardofDirectorsactsincompliancewithapplicablelegislationandmeetsaminimumoffivetimesperyear,andinadditionwheneverspecialcasesrequirethatBoardmeetingsareheld.Moreover,theBoardofDirectorsmeetsonceayeartoreviewtheGroupstrategy.

MembersoftheBoardofDirectorsareelectedannually.

TheBoardofDirectorsofFalckHoldingA/Sconsistsof:

Thorleif Krarup, ChairmanLarsFrederiksen,DeputyChairmanSteen HemmingsenKaren KohDortheMikkelsenSøren Thorup Sørensen

ViatheirrepresentationinFalckA/SandFalckDanmarkA/S,employeesarealsoofferedtoparticipateintheboardmeet-ingsofFalckHoldingA/S.

Boardmemberselectedbytheemployeeswhoalsopartici-pateintheboardmeetingsofFalckHoldingA/Sare:

VagnFlinkMøllerPedersen(electedbytheemployeesofFalckA/SandFalckDanmarkA/S)HenrikVillsenAndersen(electedbytheemployeesofFalckA/SandFalckDanmarkA/S)AllanRensgaard(electedbytheemployeesofFalckDanmarkA/S)JanHeineLauvring(electedbytheemployeesofFalckA/S)

Thorleif Krarup and Steen Hemmingsen represent the Lund-beck Foundation, and Søren Thorup Sørensen represents KIRKBI,theprincipalshareholderoftheFalckGroup.

The other board members are independent of the Falck Group and the Group’s shareholders.

In2013,theBoardofDirectorssetatargetfigurefortheshare of female board members, equivalent to at least 1-2 persons out of the six members elected by the shareholders. Thistargetwasreachedalreadyin2014.

Audit CommitteeTheAuditCommitteemonitorstheGroup’sfinancialreport-ing process, accounting policies, statutory auditing of the an-nualreportandtheeffectivenessoftheinternalcontrolandriskmanagementsystemsonbehalfoftheBoardofDirectors.In addition, the Committee makes recommendations on these issuestotheBoardofDirectorsandfollowsup,onbehalfoftheBoardofDirectors,ontheimplementationofinitiativestobetakenbytheExecutiveManagementBoard.TheCom-mitteereceivesinformationfromanumberofheadofficedepartments and from the company’s auditors.

Audit Committee members are Søren Thorup Sørensen, Chair-man, and Lars Frederiksen and Steen Hemmingsen, all of themelectedbytheBoardofDirectors.Alsoattendingthiscommittee’smeetingsaretheExecutiveManagementBoard,theChiefFinancialOfficerandthecompany’sauditor.TheAu-dit Committee meets at least three times a year.

executive Management boardTheExecutiveManagementBoardisresponsiblefortheday-to-daydevelopmentandoperationofFalckwithaprimaryfocusondevelopingandimplementingstrategiesandsignifi-cantinitiativesapprovedbytheBoardofDirectors.Moreover,theExecutiveManagementBoardisresponsibleforensuring





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ber: CorPorATe GoVernAnCe

thattheBoardofDirectorsisinformedaboutallmaterialmatters.

TheExecutiveManagementBoardconsistsofAllanSøgaardLarsen,PresidentandCEO,andMortenReignaldPedersen,DeputyCEO.

employee investmentIn order to attract and retain the Group’s management com-petencies, the remuneration paid to members of the Execu-tiveManagementBoardandseniormanagementemployeesreflectstheworktheydo,thevaluetheycreateandwhattheir peers in comparable companies receive. To ensure that theinterestsoftheGroup’sManagementandthesharehold-ers coincide, a number of senior management employees havebeenofferedtheopportunitytosubscribewarrantsatmarket value. Warrants have been sold entitling holders to subscribeforatotalof1,040,877sharesinFalckHoldingA/S,equivalentto1.55%ofthesharecapital.Inaddition,agroupof senior management employees, excluding the members of theExecutiveManagementBoard,hold0.71%ofthesharesofFalckHoldingA/S.

ThemembersoftheExecutiveManagementBoardjointlyhold10.25%ofthesharesofFalckHoldingA/Saswellaswar-rantsentitlingthemtosubscribeforanadditional6.64%ofthesharesofFalckHoldingA/S.

risk management Falck considers risk management to be an integrated manage-menttoolthatcontributestostableandprofitablegrowth.RiskmanagementprotectstheGroup’sexistingbusinessandhelps the Group achieve its strategic targets.

Falckisconstantlyfacingpotentialthreatsfromtheworldaround it. For this reason, Falck considers risk management to beanessentialcompetitiveparameter,andthisisreflectedinthe risk management standards implemented by Falck in its four business areas and related operating companies.

The Group’s operating companies must adhere to the risk man-agementprinciplesdefinedfortheGroup,whichincludeare-quirement to continuously identify, evaluate and mitigate risks. The Group reports each quarter on changes in the risk situation andtheefficiencyofmeasuresaimedatmitigatingthecompa-ny’smainrisks.Theconsolidatedrisksituationisreviewedonaquarterly basis by the management of each business area, and, inthatconnection,anassessmentismadeoftheefficiencyand

sufficiencyoftherisk-mitigatingmeasuresinitiatedbythevari-ousoperatingcompanies.Inaddition,theExecutiveManage-mentBoardreviewstheGroup’sriskareasandthemitigatingmeasurestogetherwiththebusinessareamanagerstwiceayear, and their main conclusions are submitted to the Audit CommitteeandtheBoardofDirectorsonceayear.

AdedicatedGroupRiskManagementfunctionassistseachofthebusinessareaswiththeirriskmanagementwork.

internal controlAt Group level, Falck requires that business procedures and internalcontrolsarelaiddownandcompliedwithbyallcom-panies in the Falck Group, in order to ensure generally sound andwell-documentedprocessesand,inparticular,toensurethat the reporting received from the Group’s companies is true and fair and can be used as a management tool. Busi-ness procedures and internal controls include segregation of duties,authorisationsandpowers,approvalprocedures,andrequirements to documentation.

TheGroup’sfinancefunctionpaysroutinevisitstothecompaniesoftheGrouptoensurecompliancewiththere-quirementslaiddownforbusinessproceduresandinternalcontrols,toassesswhetherthecompanieshaveestablishedthe necessary processes and internal controls relating to their activities, and to ensure that the risk of intentional or uninten-tionalmistakesisminimised.Reportsonthesevisitsaremadeboth to the local management and to Group management. Moreover,theAuditCommitteereceivesanannualreviewofthe visits made, including a summary of their results, a list of any special areas of focus, and a risk-based selection of com-paniestowhichvisitsareplannedduringthenextperiod.

Falck’sGroupfinancefunctionhasdefinedanumberofrequirements applying to the monthly reporting from the companies of the Group, including reporting of income state-ments,balancesheetsandcashflowstatements.Inaddition,furtherspecifications,analysisandcommentsonthereport-ingpackagesubmittedmustbeprovided.ReportingfromtheGroup companies is consolidated on a monthly basis, and the individuallineitems,performancecomparedwithpriorperi-ods,andtheoutlookassessmentsarereviewedandanalysed.The analysis provided is at three levels – company, business areaandGroup–tocheckcompliancewithGroupaccount-ingpoliciesandensurethatthefinancialreportingreflectschanges and trends in the Group’s activities.





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Financialreview

Revenuefor2014wasDKK13,952million,representingayear-on-yearincreaseof11.3%inspiteofanadverseimpactofDKK195millionfromexchangerates.Therateoforganicgrowthwas6.8%.TherevenuegrowthandorganicgrowthmetManagement’sexpectations.

RevenuegeneratedoutsideDenmarkcontinuedtoincreaseandaccountedfor56.2%in2014(2013:53.4%).TherateoforganicgrowthoutsideDenmarkwas8.9%,whichwaspri-marilyachievedthroughstronggrowthinEuropeandLatinAmerica.

Operatingprofitbeforecostsandamortisationfrombusinesscombinationsandexceptionalitems(EBITA)wasDKK1,139million(2013:DKK1,112million),equivalenttogrowthofDKK27million,includinganegativeimpactfromexchangeratesofDKK17million.TheEBITAmarginwas8.2%,whichwasbelowtheoriginalexpectationfor2014,primarilyasaresultoflowerearningsinSafetyServices.

FalckgeneratedafreecashflowofDKK921millionin2014(2013:DKK983million).Thus,80.9%ofEBITAwasconvertedintofreecashflowin2014(2013:88.4%).

basis of preparationThefinancialreviewisbasedonthefiguresandratiosstatedonpages2-3,andthefigurescannotinallcasesbederiveddirectlyfromtheconsolidatedfinancialstatements.

Group performance in 2014

Consolidated income statementConsolidatedrevenuefor2014wasDKK13,952million(2013:DKK12,534million).Theyear-on-yearincreasewasDKK1,418millionor11.3%,ofwhichorganicgrowthaccountedfor6.8%.

Organicgrowth,inpercent,brokendownonbusinessareasandgeographicalareasisillustratedbelow.

Allbusinessareascontributedtotheorganicgrowth.Emer-gency,theGroup’slargestbusinessarea,generated8.6%or-ganicgrowth,primarilyasaresultofsignificantgrowthinEu-ropeandLatinAmerica.Healthcaregenerated11.8%organicgrowth,primarilyasaresultofsignificantgrowthinSweden.

36 Falck Annual Report 2014 | Management review

Emergency, 8.6%

Assistance, 1.4%

Healthcare, 11.8%

Safety Services, 5.5%6.8%

Denmark, 4.5%

Nordic region, 2.9%

Europe, 10.8%

North America, 8.5%

Latin Amerika, 18.4%

Rest of the world, 15.2%

6.8%

Organic growth by geographical and business area

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ber: FinAnCiAl reView

Falckmadeanumberofacquisitionsin2014,ofwhichespe-cially TryghedsGruppen’s healthcare companies, Previa and QuickCare,contributedtothegrowthinrevenue,whereasexchange rates had an adverse impact on revenue.

Since 2010, the Group has achieved an average annual rev-enuegrowthof13.6%.

OtheroperatingincomeamountedtoDKK91million(2013:DKK65million)andwasattributabletogainsfromsalesofnon-current assets and to rent from premises.

EBITAwasDKK1,139million(2013:DKK1,112million),equiv-alenttoanEBITAmarginof8.2%.

Theyear-on-yeargrowthinEBITAwasdrivenbygrowthinEmergencyandHealthcare,whichwaspartlyoffsetbyadownturninSafetyServicesasresultofreducedexplorationactivity in the oil industry.

Costs and amortisation from business combinations totalled DKK533million(2013:DKK550million).

Financialswerelowerthanin2013andamountedtoanetexpenseofDKK273million(2013:DKK309million).Thedecreasewasprimarilyattributabletoexchangerateadjust-ments.

ProfitbeforetaxwasDKK325million(2013:DKK249mil-lion).Theincreasewasattributabletotheabove-mentionedincrease in EBITA and the reduction in costs and amortisation from business combinations.

TaxontheprofitfortheyearwasDKK107million(2013:DKK44million),equivalenttoaneffectivetaxrateof32.3%(2013:17.5%).Thetaxexpensein2013wasaffectedbyareductionof the Group’s deferred tax liability due to a reduction of the corporatetaxrateinDenmark.Adjustedforthisone-offef-fect,theGroup’staxratein2013wouldhavebeen36.8%.

ProfitfortheyearwasDKK218million(2013:DKK205mil-lion).

ThenormalisedprofitfortheyearaftertaxwasDKK618mil-lion(2013:DKK568million).

Revenue, pro forma organic growth Revenue, Falck Holding A/S

EBItA, pro forma EBItA margin EBItA, Falck Holding A/S

Revenue and organic growthDKKmillion %

eBita and eBita marginDKKmillion %

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ThefreecashflowwasDKK921million(2013:DKK983mil-lion),andtheGroup’scashconversionrate(freecashflowdividedbyEBITA)was80.9%(2013:88.4%).

Thefreecashflowin2014wasaffectedbythefactthattheincreaseinEBITDAwasmorethanoffsetbyanincreaseinworkingcapitalofDKK117millionandtheinvestmentofDKK204million(2013:DKK182million)innon-currentassetsrelated to the expansion and start-up of activities, compared withatotalinvestmentofDKK540million(2013:DKK504million).

IncometaxespaidamountedtoDKK269million(2013:DKK250million),ofwhichDKK116million(2013:DKK133million)waspaidinDenmark.FalckpaidDKK295million(2013:DKK290million)ofdirectandindirecttaxesinDenmarkin2014.

InterestpaidamountedtoDKK265million(2013:DKK281million),thedeclinebeingduetoaloweraveragerateofin-terest.

PaymentsforacquisitionstotalledDKK698million(2013:DKK729million)andprimarilyrelatedtotheacquisitionofTryghedsGruppen’shealthcarecompaniesinSwedenandDenmarkandacquisitionsofambulanceandpatienttranspor-tation activities in France and Colombia.

Dividendspaid,changesininterest-bearingdebtandotherequity movements relating to shareholders generated a cash inflowofDKK407million(2013:DKK260million)asaresultofthesaleof40%ofthesharesintheHealthcarebusiness.

Consolidated balance sheet

net operating assetsConsolidatednetoperatingassetsexcludinggoodwillstoodatDKK1,296million(2013:DKK886million).

Theincreaseinnetoperatingassetswasmainlyattributableto investment in non-current assets and increased receivables, but also to the acquisitions made during the year.

ConsolidatednetoperatingassetsincludinggoodwillstoodatDKK13,773million(2013:DKK13,097million).Theincreasewastheresultoftheabove-mentionedincreaseinnetoper-atingassetsandadditionstogoodwillandintangibleassetsfromacquisitions,whichwerepartlyoffsetbyamortisationfrom business combinations.

Free cash flow Cash conversion rate EBItA

Pro forma Falck Holding A/S

EBITA, free cash flow and cash conversion rateDKKmillion %

Net operating assets excluding goodwillDKKmillion

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equityEquityattributabletoFalckHoldingA/Sroseby15.6%toDKK6,236million(2013:DKK5,393million).Theincreasewasprimarilyattributabletothesaleof40%ofthesharesintheHealthcarebusinessandtheprofitfortheyear.

MinorityintereststotalledDKK371million(2013:DKK62million).Theyear-on-yearincreasewasprimarilyattributableto the establishment of a non-controlling shareholder in the Healthcarebusiness.Moreover,therewereminornon-con-trolling interests in the Safety Services activities in Nigeria and in the Emergency activities in Spain and Slovakia.

Net interest-bearing debtTheGroup’snetinterest-bearingdebtdeclinedbyDKK537milliontoDKK5,678million,fromastartingpointofDKK6,215millionatyear-end2013.Thiswasduetorepaymentofdebtinconnectionwiththesaleofnon-controllinginterests.

liabilities relating to acquisitions of operations and non-controlling interestsContingentconsiderationandearn-outspayabletotalledDKK83million(2013:DKK123million).Thefallwasmainlyattrib-utable to payments made during the year. Liabilities relating toacquisitionsofnon-controllingintereststotalledDKK1,077million(2013:DKK898million)basedonexpectedearningsatthetimeofexercise.Theyear-on-yearincreasewasat-tributable to acquisitions made during the year, exchange rateadjustments,andtheinterestelementofthediscountedcommitments.

If the non-controlling shareholders of the relevant subsidiar-ies do not exercise their options to sell their shares, Falck has anoppositeoptiontobuythesharesinfixedperiods.

AcquisitionsTheFalckGroup’smostimportantacquisitionsin2014were:

PreviaInJune2014,FalcktookoverPrevia,whichhascloseto900employees and is the largest operator in B2B healthcare ser-vicesinSweden.

Quick CareInJune2014,FalckacquiredDanish-basedQuickCare.Thecompanyisthebiggestprivate-sectorplayerinDenmarkwithinjobactivationservices.

FinetaInMarch2014,FalckacquiredFineta,oneofthelargestam-bulancecompaniesinFrancewithactivitiesintheEssonneregion south of Paris. The company has 75 ambulances.

BHM and HacesInNovember2014,FalckacquiredtwoColombiancompanieswhichprovidepatienttransportationandhomecareservicesin Bogotá, Colombia.

For a more detailed description of the Group’s acquisitions in 2014, please see note 27.

Outlook for 2015

TheGroupexpectstogeneraterevenueofuptoDKK15bil-lionin2015,equivalenttoagrowthrateintheregionof7%,whichisattributabletothefull-yeareffectofacquisitionsal-readymadeandexpectedlowerorganicgrowththanin2014.

The EBITA margin for 2015 is expected to be retained at a levelofabout8.0-8.5%.

Forward-lookingstatements

Certainstatementsinthisfinancialreviewareforward-looking statements. Such statements are based on current expectationsandarebytheirnaturesubjecttoanumberofuncertainties that could cause actual results and performance todiffermateriallyfromfutureresultsorperformance,ex-pressedorimplied,intheforward-lookingstatements.

ShareholdersofFalckHoldingA/S

ShareholdersinFalckHoldingA/Sareshowninthetablebe-low.

Shareholders of Falck holding A/S

Name Ownership

LundbeckfondInvestA/S,Copenhagen 57.36%KIRKBIInvestA/S,Billund 27.73%LiberatioA/S,Copenhagen (ownedbyexecutivemanagement) 10.25%TryghedGruppensmba 3,95%Seniorexecutives 0.71%





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lundbeckfond invest A/SLundbeckfondInvestA/S,whichisownedbytheLundbeckFoundation,holds57.4%ofthesharesinFalckandisthelarg-estshareholder.TheLundbeckFoundationwasfoundedin1954byGreteLundbeck,widowofthefounderofLundbeck.TheFoundationhastwoobjects,partlytomaintainandex-pand the activities of Lundbeck and the Foundation’s other companiesthroughactive,value-creatingownership,andpartlytomakenon-profitgrantsforscientificresearchofahigh,internationalqualitywithaviewtomakingasignificantdifferencetopeople’shealthandlives.Thegrantsareaward-edonthebasisofexternalpeerreviewsandindependentlyofFalck and Lundbeck.

In addition to the investment in Falck, the Foundation holds controlling interests in Lundbeck and ALK and manages its portfolio of securities through Lundbeckfond Invest and Lundbeckfond Ventures. The Foundation makes grants of DKK400-500millionannuallyfornaturalsciencesaswellasfor education and dissemination activities. The Lundbeck Foundation has increased its focus on personal grants in re-cent years. The Foundation’s latest initiative, Lundbeckfond Emerge,workstoacceleratethecommercialisationofearlyscientificprojectsthroughinvestmentandactiveparticipa-tion.

Additional information on the Lundbeck Foundation is avail-ableatwww.lundbeckfonden.com.

KirKbiTheKIRKBIGroupholds27.7%ofFalck’sshares.KIRKBIIn-vestA/SistheholdingandinvestmentcompanyoftheKirkKristiansenfamily,anditalsoholds75%oftheLEGOGroup,29.9%ofMerlinEntertainmentsPLC,trademarksandpartofanoffshorewindfarmunderconstruction.Inaddition,KIRKBIholdsaninvestmentportfoliowhichincludesassetssuchasshares, real property and private equity investments.

AcommonfeatureofallKIRKBIinvestmentsisafocusonquality, entrepreneurship and care for people.

AdditionalinformationonKIRKBIisavailableat www.kirkbi.com

Events after the balance sheet date

No events have occurred after the balance sheet date that haveamaterialimpactonthefinancialpositionoftheFalckGroup.

SINCE 2010, tHE GRouP HAS ACHIEvED AN AvERAGE ANNuAL REvENuE GRoWtH oF 13.6 %





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Riskfactors

Falck’s business model has a number of inherent characteris-tics that help reinforce the Group’s general resilience to busi-nessandfinancialrisks,characteristicsthatincludeadiverseproduct portfolio and a stable demand for those products, a presence in many markets and a broad range of customer seg-ments.Moreover,mostoftheservicesprovidedbyFalckben-efitfromastablelevelofdemandthatisrelativelyindepend-entofeconomicfluctuationsandtypicaldemand-regulatingfactors.

Thefollowingsectionsarearepresentativebutnotexhaus-tivereviewoftheGroup’sriskexposuredividedintobusi-nessrisksandfinancialrisksandpresentedinrandomorder.Falck’smanagementestimatesthattheserisksmayaffecttheGroup’sfuturegrowthlevel,activities,financialpositionandearnings.

Business risks

Corporate valuesFalck’s current and future activities are dependent on the val-ueswhichtheGroup’semployeeshaveupheldandadheredtoeversinceFalckwasfounded.Forthisreason,itwouldbea basic threat to Falck’s business if these values no longer ex-istedorweretakenforgranted.

In addition to the basic values, Falck must be able to docu-mentcompliancewithinternationalandnationallaw,regula-tions and relevant corporate governance rules. In addition to legal sanctions being levied, any failure to comply could also havetheeffectthatthetrustFalckanditsemployeeshaveearned from public authorities and private and corporate customers, built up over the course of more than a century, woulddeteriorate.

Outsourcing of public-sector operating activitiesA large percentage of Falck’s activities consist of handling tasks for public authorities such as pre-hospital services and fireservices.Despitethecontinuingdevelopmentofnewbusiness areas focused on non-public contracts, it remains highlyimportantthatthepublicauthoritiesincertainmajormarkets continue to outsource these tasks.

Falck’sdocumentedhighlevelofqualityandcostefficiency,combinedwithageneralpressureonthepublicbudgetsandrising demands on the healthcare system, have historically resultedinanetgrowthinthevolumeofpublic-sectorcon-tracts.However,therehavebeenafewtenderprocessesand

outsourcing decisions that did not feature open competition withrespecttoquality,reliabilityofsupplyandcosts.More-over,therearecaseswherecurrentplayersreceivepreferen-tialtreatmentintermsofcontractextensionwithoutatenderprocess or in terms of technical requirements in the tender thatmakeitimpossiblefornewserviceproviderstobidforthe contracts.

However,thereiscurrentlyaccesstoenoughpublicmarketsfor the assumptions underlying Falck’s long-term strategy not tobemateriallyaffectedbythisrisk.ItisalsopossiblethatFalck’spendingcomplaintswithintheEUsystemwillhaveapositiveeffectonthemarketsituationovertime.

Quality and operating efficiency QualityandoperatingefficiencyarekeyfactorsforFalckinconnectionwithretaininganddevelopingtheGroup’sactivi-ties.

MaintainingthehigheststandardsforqualityandreliabilityofsupplyhavethehighestpossibleprioritywithFalck,asitisacrucial requirement for access to operating in Falck’s existing keymarketsandfuturegrowthmarkets.Highqualityisalsoacrucialcompetitiveparameterinsituationswithcompetitorsunderbidding Falck in terms of price and corporate customers looking to outsource non-core services.

To ensure that Falck retains the high quality of its operations, itemploysstandardproceduresandprotocolsdefinedtoreducetheriskoferrorsandunintendedevents.Moreover,there is currently a great deal of focus on achieving formal accreditationsandcertifications.ThisalsoensuresGroupdocumentationofitscorrectconductinconnectionwiththeperformance of its activities.

Falck’scostleveldeterminestheGroup’scompetitivepower.Factorssuchasstaffcosts,workinghoursregulations,socialsecuritycontributionsandemployeebenefitsmadeavailabletoFalckemployeesmaychangewithoutFalckhavinganop-portunity to incorporate these things in the prices charged to customers.Thiscouldpotentiallyaffectprofitabilityandtheprospects of maintaining market share.

On Falck’s large markets, there is a general understanding amongstaffthatastabledevelopmentoftheGroupbenefitseveryone.Moreover,Falckseekstoensurethatmajorcon-tractsincludeprovisionsallowingadjustmentofFalck’spricesin the event of unforeseen changes in costs.





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ber: riSK FACTorS

CompetitionFalck thrives in a free market. Falck’s competitiveness sup-ports the existing business and provides a strong basis for continuedgrowth.Falckfacescompetitioninallitsbusinessareasandisconsequentlyregularlychallengedwithrespecttomarketshareandprofitability.Thecompetitorsareprimar-ily local and regional service providers in the various business areas.Thereisnosingleorganisationthatoffersthesameproduct portfolio as Falck does.

Asituationwithanaggressivecompetitorseekingtobuymar-ketsharebyofferingunrealisticallylowpricesanddiscountsolutions in the hope of generating future revenues is a fre-quent occurrence. Falck does not consider such an approach viable or in the interest of the public sector. For this reason, Falckdoesnotintendtoloweritsqualityrequirementsoroperateatalossjusttomaintainitsmarketshare.Sofar,suchaggressive competitors have not proved to be long-lasting.

In addition to competition in established markets, Falck con-tinuouslymonitorswhetherthreatsariseagainstitsexistingbusinessmodelwithinitsvariousbusinessareas,forexamplethroughtheemergenceofnewplatformsfordeliveryanduseof Falck’s services. Other industries have seen business-break-ing technologies in recent years: for example, in situations wherethecreationofvaluehasmovedfromtheoriginalplay-ers to other parts of the value chain. Falck continually moni-torspotentialnewtechnologiesandbusinessmodelsand,iffeasible,willbeabletointroducenewdeliveryplatformsforitsservicesforthebenefitofbothcustomersandsocietyingeneral.

Acquisitions and organic growthFalck’s strategy includes acquisitions for access to markets and competencies, although the main focus is on investing in organicgrowth.Theindividualbusinessareasareresponsiblefor identifying and assessing suitable acquisition targets, and they also evaluate development initiatives in the existing business. The analysis and assessment of acquisitions and the start-upofnewactivitiesarecarriedoutaccordingtodefinedguidelines.TheExecutiveManagementBoardapprovesallmajorinvestmentsonthebasisofanalysesmade,includinganassessmentofrisksandcoherencewiththeGroup’sstrategy.

Failedacquisitionsorwronginvestmentsmayresultinlossof the capital invested and potentially restrict future stra-tegicopportunities.Forthisreason,extensiveworkisdonetoanalyseandvaluenewacquisitiontargets,integratenew

acquisitionsandassesswhethernewinvestmentsreachthemilestonesset.Moreover,eachofFalck’sinvestmentsisrela-tivelylimitedinsize,whichmeansthatthefailureofasingleinvestmentwouldhavelimitedfinancialconsequences.

Management and organisationFalckseekstoallowitsbusinessareasandoperatingcom-panies to run their businesses independently on the basis of marketconditionsinthevariousgeographies.Decentralisedentrepreneurship, operational experience and credible deci-sion-making competencies are deemed to be key factors to fulfillingtheGroup’sstrategy.Thatmakesgreatdemandsonboth local management and the centralised functions.

In recent years, Falck has invested a great deal in the manage-ments of operating companies and business areas alike. Its corporate values and strategy have enabled Falck to attract highly competent managers and specialists. The ability to at-tract the best management and specialist resources, also in the future, is a fundamental requirement for retaining and developing the Group’s existing business and realising its growthstrategy.

Inmanymarkets,employeeswithspecialistmedicalandhealthcare skills, education and experience are a resource in shortsupply.Falck’smanagementregularlyevaluateshowbest to attract and retain the desired resources in each mar-ket. Falck believes that it is of value to all parties if Falck is a good and attractive employer and if Falck can help ensure, inadialoguewithrelevantcustomers,thattherightstaffisavailablenowandinfuture.

Business-supporting ITIT and communications systems provide support to the Group’sbusinessandthusalsoaidFalckinitsabilitytofulfilitspromises to customers and society in general.

Allcriticalapplicationsaremappedandwelldescribed,andthoroughly tested contingency plans exist for possible break-downs.

The normal life cycle for IT platforms and increased require-ments both from Falck’s business units and customers have ledtoseveralmajorconcurrentITprojectsintheGroup.FalckcomplieswithgenerallyrecognisedbestpracticesforthemanagementofmajorITprojectsandhasupgradeditsbusi-ness-supportingITorganisationwithaviewtomitigatingriskduring the development and commissioning of these systems.





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Financial risk

Capital structureInadditiontoequityofDKK6,236million,theGroupisfundedby a syndicated loan raised in the parent company and in Falck A/SandFalckDanmarkA/S.Theloantermsincludecovenantsrequiringthatcertainfinancialperformanceindicatorsaremet.Allloantermswerehonouredin2014.Theoutstandingdebtasat31December2014wasDKK6,124million.Throughregular instalments payable on the syndicated loan from 2014 to2018,thedebtwillbereducedtoDKK4,297million,whichmust be repaid in full in 2019.

interest rate and foreign exchange riskTheinterestrateriskisaffectedbytheGroup’sgeneralfi-nancing structure. Based on the current market situation, theGroup’sExecutiveManagementBoardandtheBoardofDirectorshavedecidedtoestablishinterestrateswapsuntil2019,sothat70-80%oftheexpectedfinancingisatfixedratesofinterest.Therestofthefinancingisbasedonshort-term interest rates.

The exchange rate exposure of the Group’s transactions is limited to a great extent by the fact that subsidiaries outside Denmarklargelyoperateinlocalcurrencies,totheeffectthat revenues and most of the expenses of the individual subsidiaries are in the same currency. The main exchange rate exposure faced by the Group relates to the translation into Danishkronerofthefinancialresults,cashflowsandequityofsubsidiaries.

ForamoredetaileddescriptionoftheGroup’sfinancialrisks,please see note 30.





Content



NotestotheconsolidatedfinancialstatementsContents of the consolidated financialstatements

Notes to the balance sheet

13. Intangible assets 58

14. Property, plant and equipment 60

15. Investments in associates 61

16. Inventories 61

17. trade receivables 61

18. Cash and cash equivalents 62

19. Equity, treasury shares, minoritiy interests

and dividends 62

20. Deferred tax 64

21. Provisions for acquisitions of operations

and non-controlling interests 65

22. other provisions 66

23. Credit institutions 66

24. other payables 68

25. Deferred income 68

Notes to the cash flow statement

26. Net financials 68

27. Investments in subsidiaries, non-

controlling interests and operations 68

28. Movements relating to non-

controlling interests 70

Supplementary notes

29. Contingent liabilities, contractual

obligations and collateral security 71

30. Financial instruments 72

31. Related parties 78

32. Events after the balance sheet date 79

33. Accounting estimates and judgments 79

34. Accounting policies 80

Financial statements

Income statement 45

Statement of comprehensive income 46

Cash flow statement 47

Balance sheet 48

Equity statement 50

Notes to the financial statements

1. Segment information 51

Notes to the income statement

2. Revenue 54

3. other operating income 54

4. Fees to auditors appointed at

the annual general meeting 55

5. Staff costs 55

6. Share-based payment 56

7. Amortisation, depreciation and impairment 56

8. Income after tax from associates 56

9. Amortisation of intangible assets

and costs from business combinations 56

10. Financial income 57

11. Financial expenses 57

12. Income taxes 57

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NotestotheconsolidatedfinancialstatementsIncome statement fortheyearended31December

note DKK million 2014 2013 2 Revenue 13,952 12,534 3 Other operating income 91 65 Cost of sales and external assistance -1,758 -1,515 4 Other external costs -2,794 -2,558 5 Staffcosts -7,953 -7,073 7 Amortisation, depreciation and impairment -933 -895 8 Income after tax from associates, primary activities 1 4

OPERATING PROFIT 606 562

Analysedasfollows: Operating profit before costs and amortisation from business combinations 1,139 1,112 9 Amortisation of intangible assets and costs from business combinations -533 -550

OPERATING PROFIT 606 562 8 Income after tax from associates, secondary activities -8 -4 10 Financial income 37 21 11 Financial expenses -310 -330

PROFIT BEFORE TAX 325 249 12 Income taxes -107 -44

PROFIT FOR THE YEAR 218 205

allocation: FalckHoldingA/S 200 198 Non-controlling interests 18 7

TOTAL 218 205


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Statement of comprehensive income fortheyearended31December

note DKK million 2014 2013 Profit for the year 218 205

Items that cannot be reclassified to the income statement Actuarialadjustmentofpensionprovisions -2 1

-2 1 Items that can be reclassified to the income statement Foreignexchangedifferences 43 -220 Valueadjustmentofcurrencyhedginginstruments -13 9 Valueadjustmentofinteresthedginginstruments -50 51 Adjustmentforhyperinflation 18 -2 12 Tax 2 28

- -134

Other comprehensive income after tax -2 -133

TOTAL COMPREHENSIVE INCOME 216 72

allocation: FalckHoldingA/S 198 66 Non-controlling interests 18 6

TOTAL 216 72


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Cashflowstatementfortheyearended31December

note DKK million 2014 2013 Total revenue 14,043 12,599 Total costs -13,437 -12,037

Operating profit 606 562 7 Amortisation, depreciation and impairment 933 895 27 Costs from business combinations 39 45

Profit before financials and amortisation, depreciation and impairment 1,578 1,502 Reversalofprofit/lossondivestmentofnon-currentassets -34 -11 Change in operating assets -200 -143 Movementsrelatingtoassociates 15 -35 Change in operating payables 73 102 Change in provisions 11 26

Cash flow from operating activities before financials and tax 1,443 1,441 26 Netfinancials -265 -281 12 Income tax paid -269 -250

CASH FLOW FROM OPERATING ACTIVITIES 909 910

27 Investments in subsidiaries, non-controlling interests and operations -718 -638 Cashflowsfromhedgingofnetinvestments 31 34 Divestmentofsubsidiariesandoperations -7 -22 Additions, other receivables -19 - 13 Investments in intangible assets -131 -106 14 Investments in property, plant and equipment -475 -424 Sale of property, plant and equipment 100 37 Investments in associates - -68

CASH FLOW FROM INVESTING ACTIVITIES -1,219 -1,187

Other movements relating to shareholders 22 -7 28 Movementsrelatingtonon-controllinginterests 932 -37 Interest-bearing debt raised 346 968 Repaymentofinterest-bearingdebt -893 -664

CASH FLOW FROM FINANCING ACTIVITIES 407 260

Change in cash and cash equivalents 97 -17 Cash and cash equivalents at beginning of year 905 974 Foreignexchangedifferencesrelatingtocashandcashequivalents 13 -52

18 CASH AND CASH EQUIVALENTS AT YEAR-END 1,015 905


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Balance sheet asat31December

note DKK million 2014 2013 Assets

Goodwill 10,516 9,971 Intangible assets from acquisitions 1,951 2,261 Other intangible assets 322 204

13 TOTAL INTANGIBLE ASSETS 12,789 12,436

Land and buildings 687 728 Leasehold improvements 86 61 Fixturesandfittings,toolsandequipment 1,218 1,099

14 TOTAL PROPERTY, PLANT AND EQUIPMENT 1,991 1,888

15 Investments in associates 78 86 Receivablesfromassociates 72 52 Other receivables 54 14 20 Deferredtaxassets 63 132

TOTAL FINANCIAL ASSETS 267 284

TOTAL NON-CURRENT ASSETS 15,047 14,608

16 Inventories 86 83

17 Trade receivables 2,008 1,607 Receivablesfromassociates 52 50 Tax receivables 33 - Other receivables 191 192 Prepayments 167 135 18 Securities 94 101 18 Cash 1,015 905

3,560 2,990

TOTAL CURRENT ASSETS 3,646 3,073

TOTAL ASSETS 18,693 17,681


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note DKK million 2014 2013

Equity and liabilities

Share capital 67 67 Hedging reserve -65 -17 Currency translation reserve -77 -125 Retainedearnings 6,311 5,468

EQUITY ATTRIBUTABLE TO PARENT COMPANY 6,236 5,393

Non-controlling interests 371 62

19 TOTAL EQUITY 6,607 5,455

Other employee obligations 25 21 20 Deferredtax 549 723 21 Provisions for acquisitions of operations and non-controlling interests 958 891 22 Other provisions 59 40 23 Credit institutions 5,997 6,584

TOTAL NON-CURRENT LIABILITIES 7,588 8,259

23 Credit institutions 789 637 21 Provisions for acquisitions of operations and non-controlling interests 202 130 22 Other provisions 35 16 Trade payables 757 696 Payables to associates 15 - Tax payables 42 21 24 Other payables 1,058 931 25 Deferredincome 1,600 1,536

TOTAL CURRENT LIABILITIES 4,498 3,967

TOTAL EQUITY AND LIABILITIES 18,693 17,681


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Content


Equity statement

Currency Non- Share Hedging translation Retained controlling 2014 DKK million capital reserve reserve earnings Total interests Equity

Equity at 1 January 2014 67 -17 -125 5,468 5,393 62 5,455

Equity movements in 2014 Foreignexchangedifferences 43 43 43Valueadjustmentofcurrencyhedginginstruments -13 -13 -13Valueadjustmentofinteresthedginginstruments -50 -50 -50Actuarialadjustmentofpensionprovisions -2 -2 -2Adjustmentforhyperinflation 18 18 18Tax on other comprehensive income 15 -13 2 2

Other comprehensive income - -48 48 -2 -2 - -2 Profitfortheyear 200 200 18 218

Total comprehensive income - -48 48 198 198 18 216Additions on acquisitions 15 15 Changeinnon-controllinginterests’ownershipshare 712 712 291 1,003Sale of treasury shares etc. 22 22 22 Adjustmentofprovisionforacquisitionofnon-controllinginterests relatingtoacquisitionsafter1January2010 -89 -89 -89Dividend -15 -15

Total transactions with owners - - - 645 645 291 936

Total equity movements in 2014 - -48 48 843 843 309 1,152

TOTAL EQUITY AT 31 DECEMBER 2014 67 -65 -77 6,311 6,236 371 6,607

2013 DKK million

Equity at 1 January 2013 67 -62 54 5,453 5,512 77 5,589

Equity movements in 2013Foreignexchangedifferences -220 -220 -1 -221Valueadjustmentofcurrencyhedginginstruments 9 9 9Valueadjustmentofinteresthedginginstruments 51 51 51Actuarialadjustmentofpensionprovisions 1 1 1Adjustmentforhyperinflation -2 -2 -2Tax on other comprehensive income -15 43 28 28

Other comprehensive income - 45 -179 1 -133 -1 -134 Profitfortheyear 198 198 7 205

Total comprehensive income - 45 -179 199 65 6 71 Changeinnon-controllinginterests’ownershipshare 11 11 11Acquisitions of treasury shares -7 -7 -7 Adjustmentofprovisionforacquisitionofnon-controllinginterests relatingtoacquisitionsafter1January2010 -188 -188 -188Dividend -21 -21

Total transactions with owners - - - -184 -184 -21 -205

Total equity movements in 2013 - 45 -179 15 -119 -15 -134

TOTAL EQUITY AT 31 DECEMBER 2013 67 -17 -125 5,468 5,393 62 5,455


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Business areasFalck’s reporting segments are its four business areas, Emergency, Assistance, Healthcare and Safety Services, whichprovidevariousservices.

EmergencyFalck is the largest international ambulance service provider intheworld.Falckprovidesambulanceservicestopeoplein21countriesonfivecontinentsinclosecollaborationwiththe authorities. Falck operates more than 2,300 ambulances withambulanceofficerstreatingsickorinjuredpeopleeveryyear.Incollaborationwiththeauthorities,Falckprovidesalarge number of other pre-hospital services using medical and healthcare clinics, doctor’s cars, paramedic cars and medical helicopters.

Falckisalsotheworld’slargestinternationalfireserviceproviderwithactivitiesin22countries.InDenmark,Falckprovidesfire-fightingandfire-preventionservicestotwo-thirds of the country. In its other countries of operation, Falckisactiveinindustrialfireservices,firetrainingandfireconsulting for both public and industrial customers.

AssistanceFalck’s Assistance services are concentrated in the four Nordic countries and Estonia. The services provide people withthegreatestpossiblesafetyandsecurity,byprovidingadvice,prevention,orfastandcompetentassistancewhenaccidents happen. The services are often subscription-based andespeciallyprovidehelptopeoplewiththeircarsandhomes.Asanexample,Falckhelpsmemberswhosecarhasbrokendown,oriftheyareinvolvedinanaccident:inmostcases,Falckstaffcanrepairthecaronthespot.AndFalckhelpshomeownerswitheverythingfromwaterinthebase-menttosnowontherooforburglarswhopayanuninvitedvisit. Also, both private companies and public authorities can make use of Falck’s Assistance services in situations involv-ing buildings, health, travel and more.

HealthcareFalck Healthcare is Scandinavia’s leading provider of em-ployee health-care services. Under this business area, Falck helpskeepemployeesandcitizenshealthy.Animportantpartoftheeffortsconsistsofpreventingillness,stressandattrition.Thegoalistoensurethateachindividualenjoysthegreatestpossibledegreeofwell-beingatworkandathome.Inthisway,Falckalsohelpsemployersreducecostsrelatedtosickness.Moreover,thepublicsectorsavesonsocial security costs, and insurance and pension providers achievelowerpaymentofcompensationrelatedtooccupa-tionalinjuriesandincapacityforwork.

Safety ServicesFalck provides rescue and safety courses and other safety servicesin20countriesonfivecontinents.Thishappensat33trainingcentresaimedattheoffshoreindustryandthemaritimesector,butthechemicalindustry,thewindenergy industry, the aviation industry and the armed forces inDenmarkandSwedenalsouseFalck’sservices.Inaddition,Falckhasfiveland-basedtrainingcentresintheNetherlands.Atthecentres,peoplearetrainedinhowtopreventandfightfires,andtheyaretaughthowtoreactcorrectly–alsounder extreme conditions – if accidents do occur. Falck is the world’sleadingproviderwithinthisareawithcompetenciesdeveloped on the basis of the Group’s more than 100 years of experience in rescue services.

The accounting policies of all business areas are as described intheaccountingpolicynotetothefinancialstatements.

The performance of the business areas is evaluated on the basisofoperatingprofitbeforecostsandamortisationfrombusinesscombinationsandexceptionalitems.RevenueandothertransactionswithinandbetweenbusinessareasareaccountedforasiftheyhadtakenplacewiththirdpartiesinaccordancewithFalck’srulesontransferpricingandinternalsettlement.

note

1 Segment information

Notestotheconsolidatedfinancialstatements


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note DKK million

1 Segment information (continued)

elimination and non- Safety allocated Business areas 2014 Emergency 2) Assistance Healthcare Services items Total Key ratios EBITAmargin(%)1) 6.4 10.2 7.2 10.8 8.2

incoMe stateMent Revenue 8,688 3,012 1,829 1,366 -943 13,952Operating profit before amortisation, depreciation and impairment 817 379 139 204 1,539 Amortisation, depreciation and impairment -535 -217 -55 -126 -933

Operating profit 282 162 84 78 606

Analysedasfollows: Operating profit before costs and amortisation from business combinations 552 308 132 147 1,139 Amortisation of intangible assets and costs from business combinations -270 -146 -48 -69 -533

Operating profit 282 162 84 78 606 Financials etc. -281 -281

Profit before tax 325 325 Income taxes -107 -107

Profit for the year 218 218

Balance sHeet Total assets 14,089 6,717 2,336 2,125 -6,574 18,693 Net investments in intangible assets, property, plant and equipment 251 116 38 101 - 506

1) Operatingprofitbeforecostsandamortisationofintangibleassetsfrombusinesscombinationsasapercentageofrevenue.2) TheEmergencybusinessincludesoperationsinVenezuela,whichisdefinedasahyperinflationaryeconomy.TherevenueandoperatingprofitstatedabovethereforeincludeapositiveadjustmentforhyperinflationofDKK40millionandDKK6millionrespectively.TheeffectonprofitfortheyearwasnegativeintheamountofDKK11million.


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note DKK million


elimination and non- Safety allocated Business areas 2013 Emergency 2) Assistance Healthcare Services items Total Key ratios EBITAmargin(%)1) 6.0 10.4 9.3 16.3 8.9

incoMe stateMent Revenue 7,958 3,004 1,206 1,316 -950 12,534Operating profit before amortisation, depreciation and impairment 703 365 120 269 1,457 Amortisation, depreciation and impairment -512 -203 -38 -142 -895

Operating profit 191 162 82 127 562

Analysedasfollows: Operating profit before costs and amortisation from business combinations 474 311 112 215 1,112 Amortisation of intangible assets and costs from business combinations -283 -149 -30 -88 -550

Operating profit 191 162 82 127 562 Financials etc. -313 -313

Profit before tax 249 249 Income taxes -44 -44

Profit for the year 205 205

Balance sHeet Total assets 13,133 7,044 1,540 2,140 -6,176 17,681 Net investments in intangible assets, property, plant and equipment 301 100 11 81 - 493

1) Operatingprofitbeforecostsandamortisationofintangibleassetsfrombusinesscombinationsasapercentageofrevenue.2) TheEmergencybusinessincludesoperationsinVenezuela,whichisdefinedasahyperinflationaryeconomy.TherevenueandoperatingprofitstatedabovethereforeincludeapositiveadjustmentforhyperinflationofDKK10millionandDKK4millionrespectively.TheeffectonprofitfortheyearwaspositiveintheamountofDKK1million.


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Non-current Non-current assets assets excluding excluding deferred deferred Geographical breakdown Revenue tax assets Revenue tax assets Denmark 6,113 9,774 5,839 9,744Nordic region 2,401 1,130 2,055 945 Europe 2,190 1,619 1,668 1,470 North America 1,953 1,287 1,872 1,172 Latin America 930 757 844 692 Restoftheworld 365 417 256 453

Total 13,952 14,984 12,534 14,476

Thebreakdownofrevenueisbasedoncustomers’countryofresidence.Nosinglecustomeraccountsfor10%ormoreofrevenue. Thebreakdownofassetsisbasedonphysicallocation. The Nordic region comprises the following countries: Norway,SwedenandFinland. Europe comprises the following countries: Belgium,theCzechRepublic,Estonia,France,Germany,Italy,theNetherlands,Poland,Portugal,Romania,Slovakia,Spain,Switzer-land, Turkey and the United Kingdom. North America comprises the following countries: Canada, United States. Latin America comprises the following countries: Brazil,Chile,Colombia,Ecuador,ElSalvador,Mexico,Panama,Trinidad&Tobago,UruguayandVenezuela. The rest of the world comprises the following countries: Angola,Australia,Azerbaijan,China,India,Kazakhstan,Malaysia,Nigeria,PapuaNewGuinea,Qatar,Singapore,Thailand,VietnamandUnitedArabEmirates. Inter-segment transactions are made on an arm’s length basis.


2 Revenue

Services 13,816 12,438 Products 136 96

Total revenue 13,952 12,534

3 other operating income

Gain on sales of assets 44 11 Other operating income 47 54

Total other operating income 91 65

Other operating income relates mainly to rent from premises and to activities of a secondary nature.


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4 Fees to auditors appointed at the annual general meeting

Statutory audit -10 -8 Tax advisory services -1 -1 Other services -3 -14

Total fees to Deloitte -14 -23

5 Staff costs

Salariesandwagestoemployees -6,437 -5,689RemunerationtotheExecutiveManagementBoard -11 -15RemunerationtotheBoardofDirectors -5 -5

Total salaries and remuneration -6,453 -5,709

Defined-contributionpensionplans -341 -306Other social security costs -687 -636 Otherstaffcosts -472 -422

Total other staff costs -1,500 -1,364

Total staff costs -7,953 -7,073

Permanentemployeesat31December 26,286 24,590

Otheremployeesat31December 7,944 7,419

Numberofemployees(full-timeequivalents) 24,638 22,441

RemunerationtotheExecutiveManagementBoardincludesbothafixedsalaryandvariableremuneration.ThevariableremunerationisfixedonthebasisofanassessmentoftheGroup’sperformance.ThemembersoftheExecutiveManagementBoarddonotreceivecontributionstopension plans.

TheservicecontractsofthemembersoftheExecutiveManagementBoardincludeseveranceperiodswhich,inthecaseofresignationbyanexecutive,are6monthsand,inthecaseoftermi-nation by the company, are 12 months.

TheGroupcontributestopensionplanswhichcoveremployeesinvariouscompaniesoftheGroup.Thepensionplansaretypicallydefined-contributionplans.TheGrouphasinsignificantdefined-benefitplansinNorwayandtheNetherlands.ActuarialadjustmentsoftheseplansamountedtoDKK-2millionin2014(2013:DKK1million)ofwhichthefairvalueofpensionliabilitiesandpensionassetsatyear-end2014amountedtoDKK25millionandDKK23millionrespectively.ThenetassetofDKK2millionisrecognisedinotheremployeeobligations.

Warrant programme, Executive Management Board Numberofwarrantsat1January 4,443,120 4,443,120Grantofnewwarrants - -

Number of warrants at 31 December 4,443,120 4,443,120

AttheBoardmeetingheldon15March2011,theBoardofDirectorsdecidedtoestablishawarrantprogrammeof4,443,120war-rantsfortheExecutiveManagementBoard.EachwarrantentitlestheholdertosubscribeforoneshareinFalckHoldingA/SwithanominalvalueofDKK1.00.Attheannualgeneralmeetingheldon30April2014,theshareholdersresolvedtochangethetermsforexercisingthewarrants.Pursuanttotheresolution,warrantsareexercisableintheperiod2019-2021atbetweenDKK171andDKK209pershare.Thewarrantsissuedwereacquiredatmarketvaluewithnoconditionsattached.ThemembersoftheExecutiveManagementBoarddonotparticipateinthenewwarrantprogrammeforexecutivesoftheGroupthatisdescribedinnote6.


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note DKK million

6 Share-based payment

Attheannualgeneralmeetingheldon26April2012,theBoardofDirectorswasauthorisedtoestablishanewwarrantprogramme.AtameetingoftheBoardofDirectorsheldon25June2014,theBoardpassedaresolutiontoestablishanewwarrantprogrammeforexecutiveemployeesexcludingtheExecutiveManagementBoard.

Thenewwarrantprogrammecomprises1,040,877warrantsheldby20employees.EachwarrantentitlestheholdertosubscribeforoneshareinFalckHoldingA/SwithanominalvalueofDKK1.00.Thewarrantsareexercisableinthreetranchesin2021,2023and2025atapricebasedonasharepriceofDKK102plus8%peryear.Dividendsintheperiodbetweenissuanceandexerciseofthewarrantsareadjustedintheprice.

Theexerciseofthewarrantsissubjecttotheemployeebeingincontinuingemploymentonthedateofexercise.SpecialprovisionsareinplaceconcerningsicknessanddeathandincaseofchangetotheGroup’scapitalstructureetc.TheBoardofDirectorsmayatanytimesetanearliertimeforexerciseofthewarrantsthanthesaidfixedtimesofexercise.Iftheemployeedoesnotusetheoptiontoexercise,thewarrantslapse.

2014 2013

Outstanding warrants at 1 January - - Grantofnewwarrants 1,040,877 -

Outstanding warrants at 31 December 1,040,877 -

ValuationTheemployeesacquiredthewarrantsissuedatmarketvalue,equivalenttoDKK5million,sonocostrelatingtothewarrantsisrecognisedintheincomestatement.ThemarketvalueisbasedonaBlack-Scholesoptionvaluationmodelwithadjustmentfordilution.Thevolatilityinthecal-culation(27.2%)isestimatedbasedontheaveragerateofvolatilityforthedefinedpeergroup.Zero-couponinterestratesadjustedforthetermoftheprogrammehavebeenusedasriskfreeinterestrate(1.3%).Moreover,thecalculationofthemarketvaluetakesintoaccountthenon-marketabilityofthewarrants,whereastheemploymentrequirementatthetimeofexerciseisnot included.

7 Amortisation, depreciation and impairment

Intangible assets from acquisitions -494 -505 Other intangible assets -63 -47 Buildings -34 -34 Leasehold improvements -15 -13 Fixturesandfittings,toolsandequipment -327 -296

Total amortisation, depreciation and impairment -933 -895

8 Income after tax from associates

Income after tax from associates, primary activities 1 4 Income after tax from associates, secondary activities -8 -4

Income after tax from associates -7 -

9 Amortisation of intangible assets and costs from business combinations

Amortisation of intangible assets from business combinations -494 -505 Costs from business combinations -39 -45

Total amortisation of intangible assets and costs from business combinations -533 -550


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10 Financial income

Interest from cash 9 7 Interest from securities held to maturity 1 1

Interest from financial assets not measured at fair value through profit or loss 10 8 Foreign exchange gains 21 6 Otherfinancialincome 6 7

Total financial income 37 21

11 Financial expenses

Interest to credit institutions -264 -269 Interest element on discounted liabilities -17 -10 Otherfinancialexpenses -26 -18

Interest on financial liabilities not measured at fair value through profit or loss -307 -297 Foreign exchange losses -3 -33

Total financial expenses -310 -330

12 Income taxes

Current tax -255 -241 Change in deferred tax for the year 155 141 ReductionofDanishcorporatetaxratefrom25%to22%until2016 - 49Prior-yearadjustments -7 7

Total income taxes -107 -44 Tax on other comprehensive income 2 28

Total tax -105 -16

Income tax paid during the year -269 -250

Breakdown of tax rate: Total income taxes -107 -44

Tax base for current year 332 253

Effective tax rate 32.3% 17.5%

Danishtaxrate 24.5% 25.0%DifferencesinforeigntaxratesrelativetoDanishrate -3.7% 1.6%Non-deductiblecostsandtax-exemptincome 3.9% 4.6%Non-capitalisedtaxlossesfortheperiod 2.9% 4.3%Utilisationofnon-capitalisedtaxlosses -0.9% -0.3%Payrolltaxonprofitfortheyear 4.9% 4.6%ReductionofDanishcorporatetaxrate - -19.6%Otheradjustmentsincludingadjustmentsrelatingtoprioryears 0.7% -2.7%

Effective tax rate 32.3% 17.5%

Tax on other comprehensive income Taxonforeignexchangedifferences -5 43Taxonvalueadjustmentsrelatingtocurrencyhedginginstruments -5 -2Taxonvalueadjustmentsofinteresthedginginstruments 12 -13

Total tax on other comprehensive income 2 28

InthecalculationofthereductionoftheDanishcorporatetaxratefrom25%to22%in2016,theexpectedcrystallisationin2014and2015at24.5%and23.5%respectivelywastakenintoaccountin2013.Accordingly,deferredtaxhasbeenrecognisedataweightedaverage.


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note DKK million

13 Intangible assets

Intangible Other assets from intangible 2014 Goodwill acquisitions assets Total

Costat1January2014 9,971 3,507 290 13,768Foreignexchangedifferences 70 30 -2 98Additions on acquisitions 498 164 34 696 Additions - - 131 131 Revaluationofputoptionsandearn-outs relatingtoacquisitionsbefore1January2010 -22 - - -22Disposalsandreclassifications -1 - 13 12

Cost at 31 December 10,516 3,701 466 14,683

Amortisationandimpairmentat1January2014 - -1,246 -86 -1,332Foreignexchangedifferences - -10 - -10Disposalsandreclassifications - - 5 5Amortisation - -494 -63 -557

Amortisation and impairment at 31 December - -1,750 -144 -1,894

Carrying amount at 31 December 2014 10,516 1,951 322 12,789

Intangible Other assets from intangible 2013 Goodwill acquisitions assets Total

Costat1January2013 9,554 3,400 209 13,163Foreignexchangedifferences -188 -64 -16 -268Additions on acquisitions 579 171 - 750 Additions - - 106 106 Revaluationofputoptionsandearn-outs relatingtoacquisitionsbefore1January2010 17 - - 17Disposalsandreclassifications - - -9 -9Adjustmentstoacquisitionsin2012 9 - - 9

Cost at 31 December 9,971 3,507 290 13,768

Amortisationandimpairmentat1January2013 - -766 -49 -815Foreignexchangedifferences - 25 4 29Disposalsandreclassifications - - 6 6Amortisation - -505 -47 -552

Amortisation and impairment at 31 December - -1,246 -86 -1,332

Carrying amount at 31 December 2013 9,971 2,261 204 12,436

Intangibleassetsfromacquisitionsprimarilyrelatetocustomercontractsandothercustomerrelations.Theacquisitionswereprimarilymadetoachievesynergieswithexistingbusinessareas,tofurtherdevelopexistingmarketsandtoestablishapresenceonnewmarkets.Asaresult,alargepartoftheconsiderationhasbeenallocatedtogoodwill.

Otherintangibleassetsareprimarilyrelatedtosoftware.

ExceptforgoodwillandtheFalcktrademarkintheamountofDKK514million,recognisedinintangibleassetsfromacquisitions,allintangibleassetsaredeemedtohaveadefinitelife.


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note DKK million

13 Intangible assets (continued)

Goodwill impairment testGoodwillistestedforimpairmentatleastonceayear,andmorefrequentlyifthereareindicationsofimpairment.Inimpairmenttests,thediscountedvaluesofthefuturenetcashflowsofeachofthecash-generatingunits(valueinuse)arecomparedwiththeircarrying amounts.

goodwill

2014 2013

Emergency 5,161 5,046 Assistance 2,998 2,993 Healthcare 1,228 801 Safety Services 1,129 1,131

Total goodwill 10,516 9,971

Fortheabovementionedbusinessareas,goodwillistestedbymanagementforimpairmentintherelevantcash-generatingunits,definedasthefourbusinessareas,basedonthefollowingparametersandassumptions:

Thefuturenetcashflowsarebasedontheconsolidatedbudgetfor2015andtheGroup’sstrategicplanfortheperioduntil2019.Moreover,growthduringtheterminalperiodhasbeenestimatedat3.5%intheEmergencybusiness(2013:3.5%)and2.5%intheotherbusinessareas(2013:2.5%).

ThekeyparametersfortheimpairmenttestareperformanceintermsofrevenueandtheEBITAmargin.Revenueandearningsareaffectedbydevelopmentsinthenumberofambulanceentities,transportservices,subscribers,personscovered,courseattendees,etc.AscapitaltiedupinnetoperatingassetsisgenerallylowintheGroup,thisparameterdoesnothaveanymaterialimpactontheimpairment test.

The Emergencyactivitiesprimarilyconsistofambulanceservices,includingtransportationofpatients,andoffirefightingforpublic-andprivate-sectorcustomers,andtheydonotfluctuatemateriallyfromyeartoyear.Emergencyalsoincludestrainingandconsul-tancyactivitiesforprivate-sectorcompaniesinseveralcountries.ThediscountrateforEmergencyhasbeensetat8%beforetax(2013:10%).

The Assistance activities primarily consist of subscriptions and are therefore stable from year to year. The discount rate has been set at8%beforetax(2013:10%).

The Healthcare activities primarily consist of subscriptions and long-term contracts and are therefore stable from year to year. The discountratehasbeensetat8%beforetax(2013:10%).SubstantialgrowthisexpectedintheHealthcarebusinessintheyearsahead.

The Safety Services activities primarily consist of rescue and safety courses and other safety services and are to a certain extent affectedbytheactivitylevelintheoilindustry.Thediscountratehasconsequentlybeensetat10%beforetax(2013:11%).Themainassumptionsinthestrategicplanuntil2019aretheexpectedorganicgrowthandthatoff-shoreoilexplorationactivitieswillrevert to the historic levels.

Theimpairmenttestsofgoodwilldidnotresultinanyimpairment.


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note DKK million

14 Property, plant and equipment

Fixtures, Leasehold fittings, Land and improve- tools and 2014 buildings ments equipment Total Costat1January2014 802 88 1,292 2,182Foreignexchangedifferences 20 5 67 92Additions on acquisitions - 7 43 50 Additions 34 34 407 475 Disposalsondivestments - - -53 -53Disposalsandreclassifications -52 -9 -203 -264

Cost at 31 December 804 125 1,553 2,482

Depreciationandimpairmentat1January2014 -74 -27 -193 -294Foreignexchangedifferences - -3 -19 -22Disposalsandreclassifications -9 6 162 159Disposalsondivestments - - 42 42Depreciation -34 -15 -327 -376

Depreciation and impairment at 31 December -117 -39 -335 -491

Carrying amount at 31 December 2014 687 86 1,218 1,991

ofwhichassetsunderconstruction 23 - 32 55ofwhichassetsheldunderfinanceleases 15 - 61 76

Fixtures, Leasehold fittings, Land and improve- tools and 2013 buildings ments equipment Total Costat1January2013 768 75 1,116 1,959Foreignexchangedifferences -20 -5 -109 -134Additions on acquisitions - 2 119 121 Additions 56 16 352 424 Disposalsondivestments - - -30 -30Disposalsandreclassifications -2 - -156 -158

Cost at 31 December 802 88 1,292 2,182

Depreciationandimpairmentat1January2013 -49 -17 -109 -175Foreignexchangedifferences 7 3 79 89Disposalsandreclassifications 2 - 133 135Depreciation -34 -13 -296 -343

Depreciation and impairment at 31 December -74 -27 -193 -294

Carrying amount at 31 December 2013 728 61 1,099 1,888

ofwhichassetsunderconstruction 48 - 35 83ofwhichassetsheldunderfinanceleases 16 - 55 71


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15 Investments in associates

Costat1January 87 18Foreignexchangedifferences 5 3Additions on acquisitions - 54 Additions 18 14 Disposalsandreclassifications -24 -2

Cost at 31 December 86 87

Shareofvaluationadjustmentsat1January -1 -1Shareofprofitaftertax -7 -

Share of valuation adjustments at 31 December -8 -1

Carrying amount at 31 December 78 86

See”Legalentities”foralistofassociates. Summary financial information about associates (100%): Revenue 507 215Profitfortheyear -4 2Total assets 689 527 Total liabilities 547 439

16 Inventories

Goods for resale 86 83

Total inventories 86 83

Write-downsduringtheyear 1 2

17 trade receivables

Total trade receivables 2,008 1,607

Write-downsat1January 256 182Write-downsduringtheyear 286 248Realisedwrite-downsduringtheyear -280 -174

Write-downs at 31 December 262 256

ThecreditqualityofreceivablesthatarenotoverdueandhavenotbeenwrittendownisassessedbasedontheGroup’sinternalcreditassessmentprocedures.Theyaregenerallydeemedtobeofahighqualitywithalowriskoflossesastheyaretypicallyminorsubscriptionreceivablesfromindividualcustomers,andasignificantpartofthereceivablesarefrompublicauthoritiesandothermajorcustomers.

However,write-downsofreceivablesareaffectedbythefactthatambulancecompaniesintheUnitedStatescollectpaymentdi-rectlyfromthepatientifthepatientdoesnothavehealthinsuranceoriscoveredbyapublicinsurancescheme.Thismaybedifficult,especially in the event of emergency responses.

Write-downsaregenerallyrecognisedinotherexternalcosts.However,write-downsofreceivablesfromprivatecustomersintheUnitedStatesarerecognisedinrevenuewhenitisassumedinadvancethattheycannotbecollected.

Write-downsofreceivablesarebasedonindividualassessmentsofcustomers’abilitytopay.Moreover,generalwrite-downsmaybemade based on experience and the age distribution of receivables from customers.


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17 trade receivables (continued)

Receivables overdue but not written down Duewithin-1-30days 375 381Duewithin-31-90days 216 187Duewithin-morethan90days 305 187

Total receivables overdue but not written down 896 755

18 Cash and cash equivalents

Cash 1,015 905 Securities 94 101

Total cash and cash equivalents 1,109 1,006

Breakdownofcashandcashequivalents: Cash 1,015 905 Securitieswithmaturitiesoflessthan3monthsatthetimeofacquisition - -

Cashandcashequivalentsasperthecashflowstatement 1,015 905 Securities 94 101

Total cash and cash equivalents 1,109 1,006

DKK94million(2013:DKK101million)oftheGroup’scashandcashequivalentsisheldinaSwedishsubsidiarywhichissubjecttoSwedishinsuranceregulationsandwhichisthereforesubjecttosolvencyrequirements.

19 Equity, treasury shares, non-controlling interests and dividends

Capital management TheGroupisgenerallynotsubjecttoanycapitalrequirementsotherthanusualstatutoryrequirements. TheGroupmonitorsandmanagesitscapitalstructurewithaviewtoensuringthatitcanmeetitsfinancingobligations.NochangeshavebeenmadetotheGroup’smanagementofcapitalascomparedwith2013.

Thesharecapitalisdividedinto66,952,345shares(2013:66,952,345shares)withanominalvalueofDKK1.00each.Thesharesarefully paid up and are not divided into classes.

Thecompanywasfoundedon1April2011asaprivatelimitedcompany(ApS)withasharecapitalofDKK80,000.Thecompanywasconvertedintoapubliclimitedcompany(A/S)on5July2011,andonthatoccasion,itssharecapitalwasincreasedbyDKK67million. nominal value Number of shares DKK (thousands) % of share capital Treasury shares 2014 2013 2014 2013 2014 2013

Treasurysharesat1January 115,061 36,120 115 36 0.17 0.05Additions - 78,941 - 79 - 0.12 Soldduringtheyear (115,061) - (115) - (0.17) -

Treasury shares at 31 December - 115,061 - 115 - 0.17

Dividend AdividendofDKK225millionisproposed(2013:DKK0million).


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note DKK million

19 Equity, treasury shares, non-controlling interests and dividends (continued)

Non-controlling interests Non-controlling Primary interests’ place of ownership Subsidiaries with significant non-controlling interests business Segment interest FalckHealthCareHoldingA/S-sub-group Denmark Healthcare 40.0% ThefinancialinformationsetoutbelowissummedupfortheFalckHealthCareHoldingGroup.TheinformationisstatedbeforeintercompanyeliminationswithothercompaniesoftheFalckGroup.Thenon-controllinginterestarosein2014,socomparativefiguresarenotstated. Falck- Healthcare, sub-group 2014 Revenue 1,378Profitbeforefinancials 85Profitfortheyear 46

Non-controllinginterests’shareofprofitbeforefinancials 17Non-controllinginterests’shareofprofitfortheyear 7

Non-current assets 1,693 Current assets 443 Non-current liabilities 864 Current liabilities 535

Net assets 737

Non-controlling interests’ share of net assets 295

Cashflowfromoperatingactivities 145Cashflowfrominvestingactivities -564Cashflowfromfinancingactivities 432

Change in cash and cash equivalents 13

Dividendpaidtothenon-controllinginterestduringtheyear 0

Inlegalterms,non-controllinginterestshold40.6%ofFalckHealthCareHoldingA/S.AccordingtotheGroup’saccountingpolicies,non-controllinginterestswithputoptionsareconsideredtohavebeenredeemed.Accordingly,theownershipinterestofnon-con-trollinginterestsinFalckHealthCareHoldingA/Sforaccountingpurposesis40.0%.


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20 Deferred tax

Deferredtaxprovisionsat1January 591 791Foreignexchangedifferences 2 -5Net additions on acquisitions and divestments 38 55 Change in deferred tax for the year -134 -194 Reductionofcorporatetaxrate - -49Change in deferred tax for prior years -11 -7

Deferred tax provisions at 31 December 486 591

Deferredtaxassets -63 -132Deferredtaxprovision 549 723


Breakdown of deferred tax: Intangible assets 496 574Property, plant and equipment 141 65Current assets 1 6Non-current liabilities and provisions -4 -12Current liabilities -39 45Taxlossescarriedforward -83 -61Foreignexchangedifferencesrecognisedinequity 19 -7Other -45 -19


ThetaxlossescarriedforwardandnotincludedindeferredtaxassetsamounttoDKK41million(2013:DKK37million).

Deferredtaxassetsarerecognisedonthebasisofexpectedfutureearnings.

TheGroupdoesnothaveamaterialliabilityforwithholdingtaxesinconnectionwithpotentialdividendpaymentsfromsubsidiaries.


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21 Provisions for acquisitions of operations and non-controlling interests

Provisions for acquisitions of non-controlling interests 1,077 898 Outstanding consideration and earn-outs 83 123

Total liabilities 1,160 1,021

Non-current liabilities: Provisions for acquisitions of non-controlling interests 897 817 Outstanding consideration and earn-outs 61 74

Total 958 891

current liabilities: Provisions for acquisitions of non-controlling interests 180 81 Outstanding consideration and earn-outs 22 49

total 202 130

Total liabilities 1,160 1,021

Provisions for acquisitions of non-controlling interests Provisionsat1January 898 655Foreignexchangedifferences 78 -35Additions on acquisitions 54 101 Additions on disposal of non-controlling interests 40 - Disposalsonacquisitionsofnon-controllinginterests -23 -7Interest element on discounted liabilities 11 5 Dividendspaidandotheradjustments -48 -26Adjustmentsrecognisedingoodwillrelatingtobusinesscombinationsbefore1January2010 -22 17Adjustmentsandinterestrecognisedingoodwillrelatingtobusinesscombinations after1January2010 89 188

Provisions for acquisitions of non-controlling interests at 31 December 1,077 898

Classificationofprovisionforacquisitionsofnon-controllinginterestsbyexpectedmaturity: Within 1 year 180 81 Between1and5years 870 785Morethan5years 27 32

Total 1,077 898

Outstanding consideration and earn-outs Liabilitiesat1January 123 56Foreignexchangedifferences -1 -Additions on acquisitions 50 71 Reassessmentofpreviouslyrecognisedearn-outs -9 2Payments and other disposals -80 -6

Outstanding consideration and earn-outs at 31 December 83 123

Classificationofoutstandingconsiderationandearn-outsbyexpectedmaturity: Within 1 year 22 49 Between1and5years 61 74Morethan5years - -

Total 83 123


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note DKK million

21 Provisions for acquisitions of operations and non-controlling interests (continued)

InconnectionwithFalckassuminganobligationtoacquirenon-controllinginterests,aconcurrentrightwasobtainedforFalcktoacquire the same non-controlling interests in an agreed period.

Theconsiderationforobligationsandrightstoacquirenon-controllinginterestsisdeterminedonthebasisofprofitbeforeexercisemultiplied by an already agreed multiple typically less net debt in the relevant companies. On recognition in the balance sheet, this valueismadeupatfairvalueonthebasisofearningsandnetdebtatthetimewhenthenon-controllinginterestsareexpectedtoexercise their right to sell their shares to Falck. The calculated fair value assumes an increase in earnings and a decrease in net debt in therelevantcompaniesascomparedwiththevaluerecognisedinthefinancialstatements.

2014 2013

22 other provisions

Provisionsat1January 56 20Addition on acquisitions 8 6 Provisions added during the year 43 48 Provisions used during the year -13 -18

Other provisions at 31 December 94 56

Classificationofprovisionsbyexpectedmaturity: Within 1 year 35 16 Between1and5years 58 39Morethan5years 1 1

Other provisions at 31 December 94 56

OtherprovisionsconcernactuarialcalculationsrelatingtooccupationalinjuriesintheUnitedStates and the Group’s obligation to clean up and demolish facilities on leased land.

23 Credit institutions

Non-current liabilities: Assetsheldunderfinanceleases 66 75Long-term loans 5,931 6,509

Total 5,997 6,584

current liabilities: Assetsheldunderfinanceleases 42 25Short-term loans 747 612

Total 789 637

Total credit institutions 6,786 7,221

Oftotallong-termloans,mortgageloansrepresentDKK342million(2013:DKK353million) Breakdownbymaturity: Duewithin1year 789 637Duebetween1and5years 5,751 6,318Dueafter5years 246 266

Total 6,786 7,221


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23 Credit institutions (continued)

Breakdown by currency: DKK 4,568 5,080EUR 1,576 1,571NOK 15 14 USD 573 515Other 54 41

Total 6,786 7,221

Interest reset periods: Within 3 months 6,319 6,768 Between3and12months 43 -After 12 months 424 453

Total 6,786 7,221

Thestatementssetoutabovedonotincludetheeffectofinterestrateswaps.Seenote30foradescriptionoftheGroup’srisksandcash resources.

TheGroup’seffectiveinterestrate,includingtheeffectofinterestrateswaps,hasbeendeterminedat3.9%(2013:4.0%).Theinte-restratessetoutbelowhavebeendeterminedwithouttheeffectofinterestrateswaps.

Fordebtwithaninterestresetperiodwithin3months,regularassessmentsaremadeofhowlongtheinterestperiodshouldbe.Asatthebalancesheetdate,theinterestrateoftheprimarypartofthedebtinDKKwasfixedforonemonthandaveragedapproxim-ately2.8%(2013:2.8%).

Asatthebalancesheetdate,theinterestrateoftheprimarypartofthedebtinEURwasfixedforonemonthandaveragedappro-ximately2.8%(2013:2.9%).Asatthebalancesheetdate,theinterestrateoftheprimarypartofthedebtinUSDwasfixedforonemonthandaveragedapproximately2.8%(2013:2.9%).

Fordebtwithaninterestresetperiodbeyond12months(inDKK),theeffectiveinterestrateiscurrentlyapproximately4.5%(2013:4.5%).

DKK64million(2013:DKK54million)ofcapitalisedloancostshasbeendeductedfromthecarryingamountofdebt.

TheGroupisfundedbyasyndicatedloanofDKK6,124millionwithloantermsthatincludecovenantsrequiringthatcertainfinancialperformanceindicatorsaremet.Allloantermswerehonouredin2014.

Assets held under finance leasesAssetsheldunderfinanceleasescompriseleasedvehiclesandbuildings.Theleasecontractsdonotincludeanycontingentleasepayments.

Breakdown of liabilities concerning assets held under finance leases: Present value Minimum of lease lease 2014 payments Interest payments

Duewithin1year 42 4 46Duebetween1and5years 43 7 50Dueafter5years 23 8 31

Total at 31 December 2014 108 19 127

Present value Minimum of lease lease 2013 payments Interest payments

Duewithin1year 25 4 29Duebetween1and5years 62 7 69Dueafter5years 12 4 16

Total at 31 December 2013 99 15 114


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24 other payables

Holidaypay,wages,etc. 741 646Employee income taxes, etc. 100 129 VAT 113 104 Accrued interest 1 - Derivativefinancialinstruments 83 20Other 20 32

Total other payables 1,058 931

25 Deferred income

Subscription commitments 1,272 1,191 Other deferred income 328 345

Total deferred income 1,600 1,536

26 Net financials

Financial income and expenses -273 -309 Ofwhichunrealisedgainsandlosses -21 9Interest element on discounted liabilities 17 10 Changeinamortisedborrowingcosts 13 11Change in interest payable -1 -2

Net financials -265 -281

27 Investments in subsidiaries, non-controlling interests and operations

assetsIntangible assets 198 171 Property, plant and equipment 50 121 Financial assets 1 3 Cash 55 32 Other current assets 224 122 Equity and liabilities Interest-bearing debt -30 -105 Current liabilities, provisions, etc. -166 -71 Deferredtax -42 -56Non-controlling interests -15 -

Net assets acquired 275 217 Goodwill 498 579

Purchase price 773 796 Provisions for acquisitions of non-controlling interests, additions during the year -54 -101

Purchase price excluding provisions for acquisitions of non-controlling interests 719 695 Adjustmentforcashandcashequivalentsacquired -55 -32Outstanding consideration -50 -79 Consideration relating to prior-year acquisitions 65 9

Cash consideration for acquisitions 679 593

Expensed costs from business combinations 39 45


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note DKK million

27 Investments in subsidiaries, non-controlling interests and operations (continued)

OtherthancustomercontractsandcustomerrelationswithatotalvalueofDKK164million(2013:DKK171million),noassetsorliabilitieshavebeenidentifiedwhichwerenotrecognisedinthecompaniesacquiredonthedateofacquisition.

Valuation of intangible assets Inconnectionwithacquisitions,anassessmentismadeofthevalueofthecustomeragreements,frameworkagreementsandcusto-merportfoliostakenover.Thevaluationthereofisbasedonthe”MultiPeriodExcessEarningsMethod(MEEM-method)”inwhichthevalueiscalculatedonthebasisofanexpectedfuturecashflow.Theprincipalassumptionsareexpectedlivesoftheexistingagreements and portfolios, earnings and contribution for using associated assets and employees.

Business combinations made during the year are based on preliminary calculations. Acquired assets include receivables from sales at fairvalueofDKK146million(2013:DKK99million).ThecontractualgrossreceivableisDKK146million(2013:DKK126million),ofwhichDKK0million(2013:DKK27million)wasdeemedtobeunrecoverableasofthedateoftakeover.

Non-controllinginterestsinacquisitionsin2014arerecognisedatfairvalue,includingthefairvalueofgoodwillrelatedtothenon-controlling interest.

The following acquisitions were made during the financial year. All acquisitions have been recognised applying the acquisition method:

Percentage Considera- of voting Main Month of Purchase tion rights Acquisitions 2014 activity Country acquisition price paid in acquired

Fineta Emergency France March 36 Cash 51%Previa Healthcare Sweden June 337 Cash 100%QuickCare Healthcare Denmark June 253 Cash 100%BHMandHaces Emergency Colombia November 45 Cash 80%Other 48 Cash

Total acquisitions in 2014 719

Profitofacquiredcompaniesafterdateofacquisition 6Full-year revenue including acquisitions 14,476 Full-yearprofitincludingacquisitions 264

FinetaisoneofthelargestambulancecompaniesinFrancewithactivitiesintheEssonneregionsouthofParis.Withthisacquisition,FalckstepsintotheFrenchmarket,oneofthelargestmarketsinEuropeandexpectedtoseesubstantialgrowth.TheFrenchmarketishighlyfragmentedwithmanysmalloperators,whichprovidesgoodopportunitiesforconsolidation.Partoftheconsiderationhasbeenallocatedtoexistingcustomercontracts,whiletheresthasbeenallocatedtogoodwill,relatingtothepotentialofcontinuinggrowthintheFrenchmarketbyachievingastrongfoundationandefficiencythroughconsolidation,andbyexploitingthecompeten-cies,knowledgeandrelationsofkeypersons.

PreviaisthelargestproviderinSwedenofservicesthatimprovetheworkingenvironment,reducesicknessabsenceandfacilitateaccesstorehabilitationafterillness(Företagshälso).Thecompanyprovidesservicessuchashealthchecks,consultingonhealthandsafetyatwork,handlingofsickemployees,rehabilitation,ergonomics,etc.Inaddition,thecompanyofferstrainingofmanagementstaffinhealth-relatedmatters,forexamplepoliciesandprocesses.Customersareemployers(i.e.theB2Bmarket).Partofthepurchasepricehasbeenallocatedtoexistingcustomercontracts,whiletheresthasbeenallocatedtogoodwill.Goodwillrelatestothe opportunity to expand Falck’s strategic platform for healthcare activities. Quick Carehassince2007beenoneofthebiggestDanishprovidersofservicestojobcentreswithinitsfield.Thecompany’smainactivityisaimedatbringingpeopleabsentduetosicknessbacktoworkthroughrehabilitation,clarificationandupskilling.Custo-mersarejobcentres,i.e.theB2Gmarket.Partoftheconsiderationhasbeenallocatedtoexistingcustomercontracts,whiletheresthasbeenallocatedtogoodwill,reflectingFalck’sexpansionofastrongstrategicplatformfortheGroup’shealthcareactivitiesinDenmark. bhM Soluciones integrales en Salud and haces inversiones y ServiviosaretwoColombiancompaniesthatprovidepatienttrans-portationandhomecareservicesinBogotá,Colombia.BHMisthemarketleaderinthefieldofspecialisedpatienttransportationin Bogotá. The services are primarily sold to insurance companies, and to a lesser extent to the B2B market. The Colombian market isattractivewithsignificantgrowthpotentialandasaplatformforgrowthinothercountriesinLatinAmerica.Partoftheconsi-derationhasbeenallocatedtoexistingcustomerrelationsandtheresttogoodwill,whichrelatestotheestablishmentofastrongplatformforcontinuinggrowthinColombiaandothercountriesinLatinAmerica.


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note DKK million

27 Investments in subsidiaries, non-controlling interests and operations (continued)

Percentage Considera- of voting Main Month of Purchase tion rights Acquisitions 2013 activity Country acquisition price paid in acquired Verihealth Emergency USA April 81 Cash 100%SkandinaviskHälsovärdGroup Healthcare Sweden August 43 Cash 100%G.A.R.D. Emergency Germany September 462 Cash 100%HostileEnvironmentServices Emergency Australia October 79 Cash 55%Other 30 Cash

Total acquisitions in 2013 695

Profitofacquiredcompaniesafterdateofacquisition 13Full-year revenue including acquisitions 13,080 Full-yearprofitincludingacquisitions 240

DKK million 2014 2013 Divestment of subsidiaries, non-controlling interests and operations assets Property, plant and equipment 11 30 Cash 4 30 Other current assets 30 4 Equity and liabilities Interest-bearing debt - -33 Current liabilities -15 -1 Deferredtax 4 -Capital infusion 3 -

Net assets divested 37 30 Reclassifiedtoassociates -18 -14

Sales price 19 16 Adjustmentforcashandcashequivalentstransferred -4 -30Sales price receivable -19 -8

Cash flow from divestment of non-controlling interests and operations -4 -22

Divestmentsin2014comprisedAmbuceinBelgium.Inconnectionwiththedivestment,acapitalinjectionofDKK3millionwasmade.

Divestmentsin2013comprisedFalckMedicalVladivostokLLCinRussia,FalckCARE4A/SandFalckAirAmbulanceA/SinDenmark

28 Movements relating to non-controlling interests

Dividendtonon-controllinginterestsrecognisedinequity -15 -21Dividendtonon-controllinginterestsrecognisedinprovisionsforacquisitionsofnon-controlling interests -48 -26 Divestmentofnon-controllinginterestsandcapitalinfusionsfromnon-controllinginterests 1,018 15Acquisition of non-controlling interests -23 -5

Total movements relating to non-controlling interests 932 -37


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29 Contingent liabilities, contractual obligations and collateral security

contingent liabilities

Warranty and guarantee commitments 4 7

TheFalckGroupisapartytocertainlitigationanddisputes.ManagementbelievesthatrulingsinthisrespectwillnothaveamaterialimpactontheGroup’sfinancialposition.

TheGrouphasissuedperformancebondstoacertainextentinconnectionwithanumberofcontracts,includingperformancebondsforatotalofDKK418million(2013:DKK317million).

As part of the Group’s activities, usual supplier agreements have been entered into.

Usualrepresentationsandwarrantiesaremadeinconnectionwiththedivestmentofcompaniesandoperations.Therearecurrentlynooutstandingclaimswhicharenotsufficientlyrecognisedin the balance sheet.

Joint taxationFalckHoldingA/SandtheGroup’sDanishsubsidiariesaretaxedjointlyinDenmarkwithLund-beckfondInvestA/Sastheadministrationcompany.PursuanttotherulesofDanishCorporationTaxActthereon,thecompanyisliablefromandincludingthefinancialyear2013forincometaxesetc.forthejointlytaxedcompaniesand,fromandincluding1July2012,alsoforanyobligationstowithholdtaxatsourceoninterest,royaltiesanddividendsfromthejointlytaxedcompanies.

Contractual obligationsMinimumleasepaymentsforoperatingleasecommitments:Duewithin1year 365 306Duebetween1and5years 848 635Dueafter5years 818 841

Operating lease commitments at 31 December 2,031 1,782

Net present value of lease commitments 1,720 1,436

The present value has been calculated on the basis of current market interest rates in the individual countries. Lease payments recognised in the income statement 373 341

The operating lease commitments concern leases for vehicles and buildings. The lease term for carsistypicallybetween4and9years.Theleasetermforbuildingsistypicallyupto20years.

Noneoftheleasesincludematerialcontingentleasepayments,whereastheGrouphasarightoffirstrefusaltobuyanumberofbuildingsatapresetvalue.Attheendoftheyear,Falckhadnotnotifiedanyownersthatitwantedtoexercisesucharightoffirstrefusalin2014(2013:DKK 0 million).

Collateral securityThesharesinthesubsidiariesFalckA/SandFalckDenmarkA/Shavebeenprovidedascollateralfor the Group’s debt.

Carrying amount of the Group’s properties that have been mortgaged in security of loans 445 489 Carrying amount of the Group’s operating equipment that has been mortgaged in security of loans 4 31 Bearer mortgages issued and used as collateral for credits 343 354 Unused bearer mortgages 14 14

See the note on liquidity risks for the conditions applicable to mortgaged assets.


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note DKK million

30 Financial instruments

Financial risksAsaconsequenceofitsoperations,investmentsandfinancing,theGroupisexposedtoanumberoffinancialrisks,includingmarketrisk(foreignexchangeandinterestraterisk),creditriskandliquidityrisk.

Grouppolicyistonotactivelyspeculateinfinancialrisks.Accordingly,theGroup’sfinancialmanagementexclusivelyinvolvesthemanagementandmitigationoffinancialrisksthatariseasadirectconsequenceoftheGroup’soperations,investmentsandfinancing.

TheGroup’sriskexposureissubjecttocontinuouschangesasaresultofincreaseddebt,inflationriskinemergingmarkets,foreignexchange risk and interest rate risk. The Group monitors these risks in an ongoing process and hedges them, if necessary. There are no material changes in the Group’s risk management as compared to 2013.

Foreign exchange riskTheGroup’sforeignsubsidiariesarenotseverelyexposedtoexchangeratefluctuations,asbothrevenueandmostcostsoftheindividual subsidiaries are denominated in the same currencies. The main exchange rate exposure faced by the Group relates to the translationintoDanishkronerofthefinancialresultsandequityofforeignsubsidiaries.Theincomestatementisaffectedtoaminorextentbychangesinexchangerates,astheprofitofforeignsubsidiariesistranslatedintoDanishkronerusingaverageexchangerates.

TheGroupregularlyassessesitsforeignexchangeriskinordertodeterminewhetheritsexposureshouldbehedgedbysame-cur-rencyloansorforwardexchangecontracts.TheforwardexchangecontractsstatedbelowwereenteredintotoreducetheGroup’sforeignexchangerisksinrespectofthetranslationriskforinvestmentsinsubsidiaries.Seethesectionbelowregardinghedging.

44%oftheGroup’srevenueisdenominatedinDanishkroner(DKK)(2013:47%).Othercurrenciesthataccountformorethan5%ofrevenueorearningsareUSdollars(USD),Norwegiankroner(NOK),Euros(EUR)andSwedishkroner(SEK).

2014 Hypotheticalimpactontheprofitforthe year and the Group’s equity from reasonably Probable change Hypothetical impact on Hypothetical impact probable changes in exchange rates: in exchange rate 1) profitfortheyear1) on equity 1)

EUR/DKK 1% 15 17USD/DKK 10% 55NOK/DKK 5% 6GBP/DKK 5% 16SEK/DKK 5% 21

2013 Hypotheticalimpactontheprofitforthe year and the Group’s equity from reasonably Probable change Hypothetical impact on Hypothetical impact probable changes in exchange rates: in exchange rate 1) profitfortheyear1) on equity 1)

EUR/DKK 1% 15 15USD/DKK 10% 49NOK/DKK 5% 17GBP/DKK 5% 12SEK/DKK 5% 16

1)Anincreaseintheexchangeratewouldleadtoandincreaseinprofitfortheyearandanimpactonequity.


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note DKK million

30 Financial instruments (continued)

Assumptions regarding sensitivity informationThesensitivitiesrelatedtofinancialinstrumentshavebeendeterminedonthebasisofthefinancialinstrumentsrecognisedat31December2014.Thesensitivitiesstatedhavebeendeterminedonthebasisofanassumptionthatsales,pricelevelandinterestratelevelareunchanged.TheforeignexchangerisksstatedabovedonotincludethetranslationriskoftranslatingtheprofitandequityofforeignsubsidiariesintoDanishkroner.

interest rate riskTheGroup’sinterestrateriskismainlyaffectedbyloansraisedbytheGroup.Basedonthecurrentmarketsituation,theGroup’sExecutiveManagementBoardandtheBoardofDirectorshavedecidedtoextendtheinterestrateswapsthatexpirein2017until2019,totheeffectthatalevelof70-80%ofthesyndicatedloansareatfixedratesofinterest.Theremainderofthesyndicatedloansarebasedonashort-terminterestrate.TheinterestrateexposureishedgedbyinterestrateswapsduringthehedgingperiodtotheeffectthatinterestratesonthepartofthedebtthatisdenominatedinDKKcannotexceed3.1%includingthecurrentinterestratemargin,thatinterestratesonthepartofthedebtthatisdenominatedinEURcannotexceed2.9%includingthecurrentinterestratemargin,andthatinterestratesonthepartofthedebtthatisdenominatedinUSDcannotexceed3.4%includingtheapplicableinterestratemargin.Theremainingpartofthesyndicatedfinancingisbasedonshort-terminterestrates.TheGroupisthereforeonlytoaminorextentsensitivetofluctuationsinmarketinterestrates,andafluctuationby1%wouldchangetheinterestexpensefortheyearbyDKK20million(2013:DKK26million),asalargepartoftheinterestrateriskishedgedbyinterestrateswaps.Withoutthesehedges,afluctuationby1%wouldchangetheGroup’sinterestexpensebyDKK64million(2013:DKK68million).

credit riskTheGroup’screditriskmainlyconcernsprimaryfinancialassets.Creditriskrelatedtofinancialassetsequalsthevaluesrecognisedinthe balance sheet.

TheGroupisnotexposedtosignificantrisksconcerningindividualcustomersorbusinesspartners.Whenenteringintosignificantcontracts, the Group makes a credit assessment of the customer in order to reduce the potential credit risk. The Group’s credit exposuretolargecustomersisgenerallyconsideredlowastheGroup’slargecustomersaremainlypublicauthorities.However,write-downsofreceivableshavegenerallyincreased.Falck’spresenceintheambulanceservicesmarketintheUnitedStatesgene-rally entails a higher credit risk exposure because payment for ambulance services in the United States is collected directly from the patient transported if the patient does not have health insurance or coverage under a public insurance scheme. Subscription sales to private and corporate customers are not deemed to involve material risks to the Group, as the amounts are small for the individual subscriptions,andgeneralandindividualwrite-downsaremadeforanticipatedbaddebts.

Liquidity riskThe Group’s liquidity risk primarily concerns its ability to meet its obligations to pay its employees and creditors and to service its debts.

TheGroupcontinuouslymonitorsitsfreecashflowinordertoassessitsliquidityrisks.SomeoftheGroup’sloans,includingthedebtofFalckHoldingA/S,issubjecttocertainloancovenants,andtheGroupcontinuouslymonitorswhetherthecovenantsareobserved.

Seenote23forabreakdownofmaturitiesofliabilitiestocreditinstitutions.Inadditiontoitsrecognisedliabilities,theGroupalsohastheoptiontodrawonshort-termcredits.

Atyear-end2014,theGroup’sunusedcreditfacilitieswereDKK768million(2013:DKK849million).

WiththeadditionofavailablecashandcashequivalentsofDKK1,109million(2013:DKK1,006million),totalcashresourceswereintheregionofDKK1,877million(2013:DKK1,855million).


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note DKK million


Maturity analysis of financial assets and liabilitiesAssumptions applied in the maturity analysisThematurityanalysisisbasedonallundiscountedcashflows,includingestimatedinterestpayments.Interestpaymentsare estimated based on current market conditions.

Theundiscountedcashflowsfromderivativefinancialinstrumentsarepresentedgross,unlessthepartieshaveacontractualright/obligationtosettlenet.

Due Con- Due between Due tractual Total within 1 and 5 after 5 cash carrying Market Contractual cash flows including interest 2014 1 year years years flows amount value

Financial assets:Trade receivables 2,008 - - 2,008 2,008 2,008 Receivablesfromassociates 52 - - 52 52 52Other receivables 189 38 16 243 243 243 Cash 1,015 - - 1,015 1,015 1,015

Loans and receivables 3,264 38 16 3,318 3,318 3,318

Securitiessubjecttoregulations on solvency requirements 94 - - 94 94 94

Held-to-maturity investments 94 - - 94 94 94

Derivativefinancialinstrumentstohedge net investments in foreign companies 2 - - 2 2 2

Financial assets used as hedging instruments 2 - - 2 2 2

Total financial assets 3,360 38 16 3,414 3,414 3,414

Financial liabilities:Credit institutions 942 6,245 264 7,451 6,786 6,863 Provisions for acquisitions of operations and non-controlling interests 186 1,149 27 1,362 1,160 1,160 Trade payables 757 - - 757 757 757 Other payables 987 - - 987 987 987

Financial liabilities measured at amortised cost 2,872 7,394 291 10,557 9,690 9,767

Derivativefinancialinstrumentstohedge futurecashflows 33 39 - 72 72 72Derivativefinancialinstrumentstohedge net investments in foreign companies 12 - - 12 12 12

Financial assets used as hedging instruments 45 39 - 84 84 84

Total financial liabilities 2,917 7,433 291 10,641 9,774 9,851


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Financial assets:Trade receivables 1,607 - - 1,607 1,607 1,607 Receivablesfromassociates 50 - - 50 50 50Other receivables 175 5 9 189 189 189 Cash 905 - - 905 905 905

Loans and receivables 2,737 5 9 2,751 2,751 2,751

Securitiessubjecttoregulationsonsolvencyrequirements 101 - - 101 101 101

Held-to-maturity investments 101 - - 101 101 101

Derivativefinancialinstrumentstohedgefuturecashflows - 7 - 7 7 7Derivativefinancialinstrumentstohedge net investments in foreign companies 10 - - 10 10 10


Total financial assets 2,848 12 9 2,869 2,869 2,869

Financial liabilities:Credit institutions 853 6,976 307 8,136 7,221 7,298 Provisions for acquisitions of operations and non-controlling interests 82 1,111 53 1,246 1,021 1,021 Trade payables 696 - - 696 696 696 Other payables 894 - - 894 894 894

Financial liabilities measured at amortised cost 2,525 8,087 360 10,972 9,832 9,909

Derivativefinancialinstrumentstohedge futurecashflows - 29 - 29 29 29Derivativefinancialinstrumentstohedge net investments in foreign companies 8 - - 8 8 8


Total financial liabilities 2,533 8,116 360 11,009 9,869 9,946


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note DKK million


Hedging and derivative financial instruments TheGroupusesforwardexchangecontractstohedgeitsrisksrelatedtoexchangerates.

Thefairvalueoftheeffectivepartoftheoutstandingforeignexchangecontractsasat31Decemberusedashedginginstrumentsand qualifying for hedge accounting in respect of future transactions has been recognised directly in equity through other compre-hensive income until the hedged transactions are recognised in the income statement.

ForwardexchangecontractsareusedtohedgeinvestmentsinsubsidiarieswithafunctionalcurrencyotherthanDanishkroner.

2014 2013 Contract Market Contract Market Foreign currency sold/bought on forward contracts: value value value value

NOK(expiresin2015) 130 -6 336 7GBP(expiresin2015) 314 -6 226 -8SEK(expiresin2015) 416 2 325 3

Total 860 -10 887 2

Ofwhichrecognisedinincomestatement - -

For future recognition -10 2

Themarketvalueisrecognisedinotherreceivables/otherpayables.

All contracts expire in 2015 and as they hedge net investments abroad,theydonotaffecttheincomestatement.

2014 2013 Contract Market Contract Market Interest rate swaps: value value value value

DKKinterestrateswap(fixedrate1.40%),expiredinAugust2014 - - 2,300 -19DKKinterestrateswap(fixedrate0.56%),expiresinJune2016 725 -9 725 -DKKinterestrateswap(fixedrate0.89%),expiresinSeptember2017 2,015 -35 2,015 3USDinterestrateswap(fixedrate0.55%),expiredinAugust2014 - - 406 -1USDinterestrateswap(fixedrate1.14%),expiresinSeptember2017 441 -1 390 2EURinterestrateswap(fixedrate1.17%),expiredinAugust2014 - - 1,492 -9EURinterestrateswap(fixedrate0.67%),expiresinSeptember2017 1,198 -23 1,201 2DKKinterestrateswap(fixedrate0.53%),expiresinJune2019 1,700 -2 - -EURinterestrateswap(fixedrate0.25%),expiresinJune2019 1,489 -2 - -

Total -72 -22

Ofwhichrecognisedinincomestatement - -

For future recognition -72 -22

The market value is recognised in other payables. Allinterestrateswapsarerecognisedintheincomestatementuntilexpiry.


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note DKK million


Methods and assumptions for the determination of fair valuesTheportfoliooflistedsecuritiesisvaluedatofficiallyquotedpricesorpricequotes.

The fair value of mortgage debt is valued on the basis of the fair value of the underlying bonds.

The fair value of credit institutions is valued by discounting based on market expectations.

Forwardexchangecontractsandinterestrateswapsarevaluedusinggenerallyacceptedvaluationtechniquesbasedonrelevantobservableswapcurvesandexchangerates.

2014

Quoted Non- market observable observable Fair value hierarchy for financial instruments prices input input measured at fair value in the balance sheet (Level 1) (Level 2) (Level 3) Total

Financial assets Derivativefinancialinstrumentstohedge net investments in foreign companies - 2 - 2

Total financial assets - 2 - 2

Financial liabilities Derivativefinancialinstrumentstohedge futurecashflows - 72 - 72Derivativefinancialinstrumentstohedge net investments in foreign companies - 12 - 12

Total financial liabilities - 84 - 84

2013

Quoted Non- market observable observable Fair value hierarchy for financial instruments prices input input measured at fair value in the balance sheet (Level 1) (Level 2) (Level 3) Total

Financial assets Derivativefinancialinstrumentstohedge futurecashflows - 7 - 7Derivativefinancialinstrumentstohedge net investments in foreign companies - 10 - 10


Financial liabilities Derivativefinancialinstrumentstohedge futurecashflows - 29 - 29Derivativefinancialinstrumentstohedge net investments in foreign companies - 8 - 8



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31 Related parties

FalckHoldingA/SissubjecttocontrollinginfluencebyLundbeckfondInvestA/S,Scherfigsvej7,DK-2100Copenhagen,Denmark,whichholds57.4%ofthesharecapital.LundbeckfondInvestA/SisownedbytheLundbeckFoundation.

Falck Holding A/S has registered the following shareholders who hold 5% or more of the share capital: LundbeckfondInvestA/S,Copenhagen 57.4% 57.4%KIRKBIInvestA/S,Billund 27.7% 26.5%LiberatioA/S,Copenhagen(ownedbythemembersoftheExecutiveManagementBoard) 10.3% 10.3% ExceptfromtransactionsrelatedtothejointtaxationwithLundbeckfondInvestA/Sasmentionedinnote29,therewerenotransactionswiththeserelatedparties.

ManagementRelatedpartiesinFalckHoldingA/SwithsignificantinfluenceincludetheGroup’sExecutiveManagementBoardandBoardofDirectorsandtheircloserelatives.Relatedpartiesalsocomprisecompaniesinwhichtheseindividualshavematerialinterests. Tradingwithexecutiveswasasfollows: Saleofwarrantsasdescribedinnote6 5 - TheGrouphadnotransactionswiththemembersoftheExecutiveManagementBoard,BoardofDirectorsorotherpersonswithsignificantinfluenceotherthantheremunerationpaidtoexecutives, stated in notes 5 and 6.

AssociatesTherelatedpartiesofFalckHoldingA/Salsoincludeassociatesinwhichthecompanyhassignificantinfluence.Seenote15and”Legalentities”foranoverviewofassociates.

Tradingwithassociateswasasfollows: Sale of property, plant and equipment 30 - Purchase of services -15 -10 Royalties 2 1Lease costs -29 -25

Receivablesfromassociatesappearfromthebalancesheet,andinterestthereonfortheperiodamountedtoDKK4million.

Transactionswithsubsidiarieshavebeeneliminatedintheconsolidatedfinancialstatementsinaccordancewiththeaccountingpolicies.


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note DKK million

32 Events after the balance sheet date

NoeventshaveoccurredafterthebalancesheetdatethathaveamaterialimpactonthefinancialpositionoftheFalckGroup.

33 Accounting estimates and judgments

The calculation of the carrying amounts of certain assets andliabilitiesreliesonjudgments,estimatesandassump-tions about future events.

The estimates and assumptions applied are based on histori-calexperienceandotherfactorsthatManagementconsid-ersreasonableunderthecircumstances,butwhichareinherently uncertain and unpredictable. Such assumptions may be incomplete or inaccurate, and unexpected events or circumstancesmayoccur.Inaddition,theGroupissubjecttorisks and uncertainties that may cause actual outcomes to deviate from such estimates.

Estimatesmaterialtothefinancialreportingaremadeinthe calculation of, i.a. depreciation, amortisation and impair-ment losses, provisions, the determination of fair values, as wellascontingentliabilitiesandassets.

Amortisation and depreciation periods and residual valuesIn the determination of the carrying amount of intangible assets and property, plant and equipment, estimates are required of the estimated economic lives of the assets and of residual values.

Goodwill impairment testIntheannualgoodwillimpairmenttestorincaseofanyindication of an impairment requirement, an assessment is madeofhowthepartsoftheGroup(cash-generatingunits)towhichthegoodwillrelateswillbeabletogeneratesuf-ficientcashflowsinfuturetosupportthevalueofgoodwilland other net assets in the relevant part of the Group.

As a result of the nature of the company’s business, ex-pectedcashflowsmustbeestimatedoveraperiodofanumberofyears,whichinherentlyproducessomedegreeofuncertainty.Thisuncertaintyisreflectedinthediscountrateapplied.

Theimpairmenttestofgoodwillandtheassociatedparticu-larly sensitive factors and sensitivity analyses are described innote13totheconsolidatedfinancialstatements.

Provisions for acquisition of non-controlling interestsIn the determination of the fair value of issued put options underwhichtheGroupassumesanobligationtobuysharesinsubsidiariesheldbynon-controllingshareholders,Man-agementmakescertainestimates,includingofthefuturefi-nancial performance of the subsidiaries, the probability that the option holders exercise their right to sell and the time of exercise. These factors are of material importance to the fair valuecalculation,whichisthereforesubjecttouncertainty.

Purchase price allocation in business combinationsInconnectionwithallocationofpurchasepriceinbusinesscombinations, calculations are made of fair value of acquired assets and liabilities. As this determination is based on ex-pectedfuturecashflowsrelatedtotheassetsandliabilitiesacquired,therealisationofsuchcashflowsasanticipatedissubjecttoaninherentuncertainty.InaccordancewithIFRS3, the purchase price allocations in business combinations maybeadjustedforupto12monthsfromthedateofac-quisition.


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FalckHoldingA/Sisapubliclimitedliabilitycompanyincor-poratedinDenmark.Theannualreportfortheyearended31December2014includesboththeconsolidatedfinancialstatementsofFalckHoldingA/Sanditssubsidiaries(theGroup)andseparatefinancialstatementsoftheparentcompany.

TheannualreportofFalckHoldingA/Sispresentedinac-cordancewithInternationalFinancialReportingStandards(IFRS)asadoptedbytheEUandadditionalDanishdisclosurerequirements for annual reports for accounting class C large.

TheBoardofDirectorsandtheExecutiveManagementBoard considered and approved the annual report for 2014 ofFalckHoldingA/Son18March2015.TheannualreportwillbesubmittedtotheshareholdersofFalckHoldingA/Sfor adoption at the annual general meeting to be held on 29 April 2015.

The annual report has been prepared under the historical costconvention,exceptthatderivativesandfinancialinstru-ments are measured at fair value.

TheannualreportispresentedinDanishkroner(DKK)rounded to the nearest million.

neW financial rePorting stanDarDs

Effective1January2014,FalckHoldingA/Simplementedthefollowing:

• IFRS10–ConsolidatedFinancialStatements• IFRS11–JointArrangements• IFRS12–DisclosureofInterestsinOtherEntities• IAS 27 – Separate Financial Statements• IAS28–InvestmentsinAssociatesandJointVentures• AmendmenttoIAS32–OffsettingFinancialAssetsand

Financial Liabilities• AmendmenttoIAS39–NovationofDerivativesandConti-

nuation of Hedge Accounting• IFRIC21–Levies• PartsoftheannualimprovementstoIFRS2010-2012con-cerningtheamendmentstoIFRS2Share-basedPaymentandIFRS3BusinessCombinations.TheamendmentstoIFRS2andIFRS3applytotransactionswhosedateofallocationordateoftakeover,respectively,is1July2014orlater.ThesepartsoftheannualimprovementstoIFRS2010-2012 have consequently been implemented in the financialyear2014.

OtherthannewdisclosurerequirementsunderIFRS12con-cerning material non-controlling interests in the subsidiaries

note

34 Accounting policies

oftheFalckHoldingGroup,noneofthenewstandardsandinterpretationshaveaffectedtherecognitionandmeasure-mentorthepresentationandclassificationfor2014.

future ifrs aMenDMents

StandardsandadditionsissuedbytheIASBwhichcomeintoforceafter31December2014,standardsandadditionsnotyetadoptedbytheEU,orstandardsforwhichtheEUhaspostponedtheeffectivedatehavenotbeenimplemented.They include:

• IFRS9–FinancialInstruments,ClassificationandMeasurementofFinancialAssets

• IFRS15–RevenuefromContractswithCustomers• AmendmenttoIAS16and38–ClarificationofAcceptableMethodsofDepreciationandAmortisation

• AmendmenttoIAS19–EmployeeBenefits• AmendmenttoIAS27–EquityMethodinSeparate

Financial Statements • AmendmenttoIFRS11–ClarificationofProvisions onAccountingforAcquisitionsofInterestsinJoint Operations

• AnnualimprovementstoIFRS2010-2012• AnnualimprovementstoIFRS2011-2013

Theimplementationofthesestandardswillresultinaddi-tionalnotespecificationsandreclassificationsbutisnotex-pectedtosignificantlyaffectrecognitionandmeasurement.However,theanalysisoftheexpectedeffectofimplement-ingIFRS9andIFRS15hasnotyetbeencompleted.

Theaccountingpoliciessetoutbelowhavebeenconsistent-lyappliedtothefinancialyearandthecomparativefigures.

Materiality in Presentation

Inconnectionwiththepreparationoftheannualreport,managementevaluateshowtheannualreportshouldbepresented. In the evaluation, it is considered important that the contents are of a material nature to users.

Inthemanagementreview,managementendeavourstopresentacomprehensiveandusefulreviewofmatterswiththe greatest materiality to the Falck Group and the attain-mentoftheGroup’sfinancialtargets.Inthepresentationofthefinancialstatements,aspecificevaluationismadeinrespectofeachlineitemandnotetothefinancialstate-ments of the need for further decomposition or, alterna-tively, aggregation of several line items and omissions or aggregationofnotestothefinancialstatements.Thechoiceof presentation is made based on an overall assessment of


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therequirementtogiveatrueandview,therequirementstoformunderIFRS,Falck’sspecificcircumstancesandotherrelevant factors.

Basis of consoliDation

TheGroupfinancialstatementsconsolidatetheaccountsoftheparentcompany,FalckHoldingA/Sanditssubsidiaries.SubsidiariesareentitiescontrolledbyFalckHoldingA/S.Control means that the Falck Group controls the company, i.e. that the Falck Group is exposed, or has rights to variable returnsfromthecompanyandhastheabilitytoaffectthesizeofthosereturnsthroughitspoweroverthecompany.Control is usually achieved by directly or indirectly holding orcontrollingmorethan50%ofthevotingrightsorotherrights such as agreements on management control.

TheconsolidatedfinancialstatementsarepreparedonthebasisofthefinancialstatementsofFalckHoldingA/Sandsubsidiaries by adding items of a like nature.

Thefinancialstatementsusedforconsolidationarepre-paredinaccordancewiththeGroup’saccountingpolicies.

On consolidation, investments in subsidiaries, intra-group income and expenses, intra-group balances and dividends and realised and unrealised gains and losses on transactions betweenGroupcompaniesareeliminated.

Thelineitemsofthefinancialstatementsofsubsidiariesarefullyconsolidatedintheconsolidatedfinancialstatements.Profitfortheyearandequityattributabletonon-controllinginterestsinsubsidiariesthatarenotwhollyownedarein-cludedintheconsolidatedprofitandequity,respectively,but as separate line items.

AssociatesEnterprisesinwhichtheFalckGroupexercisessignificantin-fluencebutnotcontroloftheoperatingpolicyandfinancialdecisionsareclassifiedasassociates.Significantinfluenceis generally achieved by directly or indirectly holding or controllingmorethan20%,butlessthan50%,ofthevotingrights. Agreements and other matters are included in the as-sessmentofinfluence.

Unrealisedgainsontransactionswithassociatesareelimi-nated in proportion to the Group’s share of the enterprise.

Business combinationsCompaniesacquiredorestablishedduringthefinancialyearare recognised as from the date of acquisition or inception. Companies divested or discontinued are recognised in the

income statement until the date of divestment or discontin-uation.Thecomparativefiguresarenotrestatedtoreflectcompanies acquired, divested or discontinued.

Acquisitions of subsidiaries or associates are accounted for applyingtheacquisitionmethod.Identifiableassets,liabili-ties and contingent liabilities of acquirees are stated at their fairvalueatthedateofacquisition.Identifiableintangibleassets are recognised if they are separable or derive from acontractualright.Deferredtaxonrevaluationsisrecog-nised.

TheacquisitiondateisthedateonwhichtheGroupobtainscontrol of the acquiree.

Anypositivedifferencebetweentheconsiderationandthevalue of non-controlling interests in the acquiree and the fair value of any previously held interests in the acquiree, on theonehand,andthefairvalueoftheidentifiableassets,liabilities and contingent liabilities, on the other hand, is recognisedinthebalancesheetasgoodwill.Goodwillisnotamortised, but is tested for impairment at least once a year. Onacquisition,goodwillisallocatedtothecash-generatingunitswhichwillsubsequentlyformthebasisforfutureimpairmenttests.Anygoodwillarisingandanyfairvalueadjustmentsmadeontheacquisitionofaforeigncompanywhosefunctionalcurrencyisnotthesameasthepresenta-tioncurrencyusedintheconsolidatedfinancialstatementsare treated as assets and liabilities of the foreign company and are translated on initial recognition to the foreign com-pany’s functional currency at the exchange rate ruling at the transaction date.

Anynegativedifferenceisrecognisedintheincomestate-ment on the date of acquisition.

The consideration for an enterprise consists of the fair value of the agreed purchase price. For business combinations in whichtheagreementincludesaprovisiononadjustmentoftheconsiderationconditionalonfutureevents(earn-out),the fair value of this part of the consideration is recognised at the date of acquisition. Any changes in the fair value of the contingent consideration after initial recognition are recognised in the income statement. Put options issued in connectionwithacquisitions,thevalueofwhichiscontin-gentonfutureevents,willberecognisedaspartofthecon-sideration at the date of acquisition. The put options issued are subsequently measured at fair value. Any changes in the fair value of the issued put options after initial recognition are recognised in equity. Acquisition costs are recognised in the income statement.

note

34 Accounting policies (continued)


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Adjustmentsofliabilitiesinconnectionwithcontingentconsiderationandissuedputoptions,thevalueofwhichisconditional on future events relating to business combina-tionswithanacquisitiondatepriorto1January2010,willcontinuetoberecognisedinaccordancewithIFRS3(2004),i.e.adjustmentsarerecognisedingoodwilluntilthecondi-tions have been met or the issued put options are exercised.

If uncertainties regarding the measurement of acquired identifiableassets,liabilities,contingentliabilitiesortheconsideration for the business combination exist at the acquisition date, initial recognition takes place on the basis ofpreliminaryfairvalues.Ifidentifiableassets,liabilities,contingent liabilities and the consideration for the busi-ness combination are subsequently determined to have hadadifferentfairvalueattheacquisitiondatethanfirstassumed,goodwillisadjusteduntil12monthsaftertheac-quisitiondate.Theeffectoftheadjustmentsisrecognisedintheopeningequity,andthecomparativefiguresarerestatedaccordingly.Goodwillisnotadjustedsubsequentlyexcept in the event of material errors.

Gainsorlossesondivestmentorwindingupofsubsidiariesandassociatesarestatedasthedifferencebetweenthesales or disposal amount and the carrying amount of the net assetsincludinggoodwillatthetimeofsaleplussalesorwindingupcosts.Inaddition,anyretainednon-controllinginterests are measured at fair value. Gains or losses on the divestmentorwindingupofsubsidiariesandassociatesandtheeffectofrenewedmeasurementofanynon-controllinginterests are recognised in the income statement.

Non-controlling interestsOn initial recognition, non-controlling interests are meas-uredeitheratfairvalue(includingthefairvalueofgoodwillrelated to non-controlling interests in the acquiree) or as non-controlling interests’ proportionate share of the acquiree’sidentifiableassets,liabilitiesandcontingentliabilitiesmeasuredatfairvalue(excludingthefairvalueofgoodwillrelatedtonon-controllinginterests’shareoftheacquiree). The measurement basis for non-controlling inter-ests is selected for each individual transaction.

Acquisition and divestment of non-controlling interestsIncreases and reductions of minority interests are treated foraccountingpurposesastransactionswithshareholders,intheircapacityasshareholders.Asaresult,anydiffer-encesbetweenadjustmenttothecarryingamountofnon-controlling interests and the fair value of the consideration received or paid are recognised directly in equity.

When put options are issued as part of the consideration for business combinations, the non-controlling interests re-ceiving put options are considered to have been redeemed on the acquisition date. The non-controlling interests are eliminated and a debt obligation is recognised at fair value on initial recognition. The fair value is determined as the present value of the exercise price of the option. The sub-sequentmeasurementisatfairvaluewithrecognitioninequity of value changes as they arise.

Issuedputoptionsrelatedtobusinesscombinationswithanacquisitiondatepriorto1January2010willcontinuetoberecognisedinaccordancewithIFRS3(2004),i.e.subsequentmeasurementtakesplaceatamortisedcostwithrecogni-tion of interest expenses in the income statement and value changesingoodwillastheyarise.Anysubsequentdividendpaymentstooptionholdersarerecognisedasafinancialexpenseintheincomestatementinthecaseswheretheop-tionpriceisindependentofthedividendpayment.Dividendpayments are included in the determination of the cost of theputoptionsincaseswheretheoptionpriceisadjustedfor dividend payments.

Foreign currency translation and hyperinflationA functional currency is determined for each of the report-ing entities of the Group. The functional currency is the currencyintheprimaryeconomicenvironmentinwhichthereporting entity operates. Transactions in currencies other than the functional currency are transactions in foreign currencies.

On initial recognition, transactions denominated in foreign currencies are translated to the functional currency at the exchange rates ruling at the transaction date. Exchange differencesarisingbetweentheexchangeraterulingatthetransaction date and the exchange rate ruling at the date of actual payment are recognised in the income statement underfinancialincomeorfinancialexpenses.

Receivables,payablesandothermonetaryitemsdenomi-nated in foreign currency are translated into the functional currency at the exchange rate ruling at the balance sheet date.Thedifferencebetweentheexchangeraterulingatthe balance sheet date and the exchange rate ruling at the datewhenthereceivableorpayablearoseortheexchangerateappliedinthemostrecentfinancialstatementsisrec-ognisedintheincomestatementunderfinancialincomeorfinancialexpenses.

OnrecognitionintheconsolidatedfinancialstatementsofenterpriseswithanotherfunctionalcurrencythanDKK,the statements of comprehensive income are translated at

note



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the exchange rates at the transaction date and the balance sheets are translated at the exchange rates at the balance sheet date. Average exchange rates for the month is used as the exchange rate at the transaction date to the extent thatthisdoesnotsignificantlychangethepresentationoftheunderlyingtransactions.Exchangedifferencesarisingon the translation of the equity of these subsidiaries at the beginning of the year to the exchange rates ruling at the balance sheet date and on the translation of statements of comprehensive income from the exchange rate ruling at the transaction date to the exchange rate ruling at the balance sheet date are recognised directly in other comprehensive incomeandclassifiedinequityinaseparatecurrencytrans-lationreserve.Exchangedifferencesareallocatedbetweenthe parent company’s and the non-controlling interests’ shares of equity.

Onrecognitionintheconsolidatedfinancialstatementsofsubsidiariesandassociatesoperatinginhyperinflation-ary economies, revenue and costs are translated at the exchange rate ruling at the balance sheet date. Prior to the translation, the income statement and the non-monetary items of the balance sheet are restated taking into account thebuyingpowerofthefunctionalcurrencybasedoninfla-tionuntilthebalancesheetdate(inflationcorrection).Theeffectoftheinflationcorrectionisrecognisedinthecurren-cy translation reserve in equity. In the income statement, it isrecognisedinfinancialsasaloss/gainonthemonetarynetpositionintherelevantentities.Theassessmentofwhenaneconomyishyperinflationaryisbasedonqualitativeaswellasquantitativefactors,includingwhethertheaccumulatedinflationoverathree-yearperiodismorethan100%.

Foreignexchangeadjustmentsofbalancesthatarecon-sidered part of the overall net investment in companies withfunctionalcurrenciesotherthanDKKarerecognisedintheconsolidatedfinancialstatementsdirectlyinothercomprehensiveincomeandclassifiedinequityinaseparatecurrency translation reserve. Similarly, exchange gains and lossesonthepartofloansandderivativefinancialinstru-mentseffectivelyhedgingthenetinvestmentinsuchcom-paniesandwhicheffectivelyhedgeagainstcorrespondingexchangegains/lossesonthenetinvestmentinthecom-pany are recognised directly in other comprehensive income andareclassifiedinequityinaseparatecurrencytranslationreserve.

OnrecognitionintheconsolidatedfinancialstatementsofassociateswithafunctionalcurrencyotherthanDKK,the share of results for the year is translated at average exchangerates,andtheshareofequityincludinggoodwillis translated at the exchange rates ruling at the balance

sheetdate.Exchangedifferencesarisingonthetranslationof the share of the opening equity of foreign associates to exchange rates ruling at the balance sheet date and on the translation of the share of results for the year from average exchange rates to exchange rates ruling at the balance sheet date are recognised directly in other comprehensive equityandareclassifiedinequityinaseparatecurrencytranslation reserve.

Onfullorpartialdivestmentofforeignsubsidiaries,wherecontrolisgivenup,foreignexchangeadjustmentsaccumu-latedinequityviaothercomprehensiveincomeandwhichcanbeattributedproportionatelytoentitiesarereclassifiedfromthe“Currencytranslationreserve”totheincomestate-menttogetherwithanygainorlossonthedivestment.

Onthedivestmentofpartiallyownedforeignsubsidiaries,the part of the currency translation reserve that relates to non-controlling interests is not recognised in the income statement.

Onpartialdivestmentofforeignsubsidiarieswithoutgivingup control, a proportionate share of the currency translation reserve is transferred from the parent company sharehold-ers’ to the non-controlling shareholders’ share of equity.

On partial divestment of associates, the proportionate share of the accumulated currency translation reserve recognised inothercomprehensiveincomeisreclassifiedtoprofitfortheyeartogetherwiththegainorlossonthedivestment

Any repayment of intra-group balances that are considered part of the net investment is not considered, in itself, a partial divestment of subsidiaries.

Derivative financial instrumentsDerivativefinancialinstrumentsarerecognisedfromthetrade date and measured at fair value in the balance sheet.

Thefairvalueofderivativefinancialinstrumentsisrecog-nised as separate assets or liabilities in other receivables or other payables respectively.

Thefairvalueofderivativefinancialinstrumentsisdeter-mined on the basis of market data and generally accepted pricing models.

Hedges of net investmentDerivativefinancialinstrumentsenteredintoinordertoeffectivelyhedgeinvestmentsinforeignsubsidiariesarerecognised in the balance sheet through comprehensive income at the time they are entered into and are measured

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at fair value at the balance sheet date. Exchange gains and losses are recognised in equity through other comprehen-sive income as a separate currency translation reserve.

Fair value hedges Derivativefinancialinstrumentsenteredintoinordertohedge other assets and liabilities denominated in foreign currency are recognised in the balance sheet at the time they are entered into and are stated at fair value at the balance sheet date.

Anymarketvalueadjustmentsofderivativefinancialinstru-ments entered into to hedge other assets and liabilities are recognised in the income statement in the same line items as the transactions hedged.

Cash flow hedgesChangesinthepartofthefairvalueofderivativefinancialinstruments designated as and qualifying for hedging of futurecashflows,andwhicheffectivelyhedgechangesinthe value of the hedged item, are recognised in other com-prehensive income in a separate hedging reserve in equity. When the hedged transaction is realised, any gains or losses regarding such hedging transactions are transferred from equityandrecognisedinthesamefinancialitemasthehedgeditem.Whenproceedsfromfutureborrowingsarehedged, any gains or losses regarding hedging transactions are,however,transferredfromequityoverthematuritype-riodoftheborrowings.

Forwardpremiumsorforwarddiscountsonforwardex-change transactions are recognised in the income statement during their terms.

Other derivative financial instrumentsForderivativefinancialinstrumentswhichdonotmeetthecriteria for hedge accounting, changes in the fair value are recognisedintheincomestatementunderfinancials.

incoMe stateMent

revenueRevenuerepresentsthevalueofservicesandgoodsdeliv-eredandinvoicedsubscriptionsattributabletothefinancialperiod, and is recognised in the income statement if delivery and transfer of risk to the buyer have taken place before year-end, and if the income can be reliably measured and is expected to be received.

The value of services rendered is recognised on the basis of the delivered percentage of the total service.

Revenuefromsubscriptionsisallocatedtotheincomestate-ment on a straight-line basis.

Revenuefromsalesofgoodsisrecognisedwhenthesignifi-cantrisksandrewardsofownershiphavebeentransferredto the buyer.

Revenueismeasuredatthefairvalueoftheagreedconsid-eration excluding VAT and other taxes collected on behalf of third parties. All discounts granted are recognised in revenue.

Other operating incomeOther operating income represents revenue of a secondary nature relative to the Group’s principal activities, such as gains on the sale of assets and rental income.

Cost of sales and external assistanceCost of sales and external assistance represents costs in-curred and external assistance used to generate the year’s revenue.

Other external costsOther external costs include costs relating to operating and maintainingequipmentandpropertyaswellassalesandadministrative expenses.

Staff costsStaffcostsrepresentsalariesandwages,pensioncontribu-tions,socialsecuritycostsandotherstaffcosts.

Share of income after tax from associates, primary activitiesIncome from investments in associates are recognised in the income statement at the proportionate share of the results after tax and non-controlling interests of the associates and after elimination of the proportionate share of intra-group profits/losses.TotheextentthatprofitfromassociatesisderivedfromoperationswithintheGroup’sprimaryactivi-ties,profitfromassociatesispresentedin”Operatingprofitbeforeexceptionalitems”.

Exceptional itemsExceptional items represent material items of a non-recur-ring nature that are not attributable to the Group’s ordinary activities.

Share of income after tax from associates, secondary activitiesProfitfromassociatesaftertaxnotgeneratedfromopera-tionswithintheGroup’sprimaryactivitiesisrecognisedintheincomestatementonthelineitem”Profitfromfinancials”.

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Financial income and expensesFinancial income and expenses represent interest income and interest expense, realised and unrealised capital gains andlossesandamortisationrelatedtofinancialassetsandliabilities.Dividendstocapitalholderswhohavereceivedputoptionsinconnectionwithbusinesscombinationsarerecognisedasafinancialexpenseinthecaseswheretheop-tion price is independent of dividend payments. Financials are recognised at the amounts related to the year. Further-more, realised and unrealised gains and losses on derivative financialinstrumentswhichcannotbeclassifiedashedgingarrangements are included.

incoMe taXes

FalckHoldingA/SandtheGroup’ssubsidiariesarejointlytaxedwithLundbeckfondInvestA/S,whichisthemanage-mentcompanyforthenationaljointtaxationandconse-quentlysettlesallpaymentsofincometaxeswiththetaxauthoritiesinrespectofthejointlytaxedcompaniesandtheFoundation’sotherDanishsubsidiaries.

CurrentDanishcorporationtaxisallocatedamongthejointlytaxedcompaniesaccordingtothetaxableincomeofthese companies.

Income tax for the year, consisting of current tax for the yearandchangesindeferredtax,isrecognisedinprofitfortheyearwithrespecttothepartthatcanbeattributedtoprofitfortheyearandinothercomprehensiveincomewithrespect to the part that can be attributed to other compre-hensive income or directly to equity.

Tax payablesCorporation tax payables include corporation taxes made up onthebasisofestimatedtaxableincomeforthefinancialyearandprior-yearadjustments.

Deferred taxDeferredtaxiscalculatedaccordingtothebalancesheetlia-bilitymethodandisbasedonalltimingdifferencesbetweenthe accounting and tax value of assets and liabilities.

Deferredtaxisnotrecognisedongoodwillthatisnottaxdeductible, and deferred tax is not recognised on undistrib-utedprofitsinsubsidiariesandtimingdifferencesthataroseat the time of recognition in the balance sheet other than foracquisitions,ifsuchdifferenceswillnotaffectprofitortaxable income.

When alternative tax rules can be applied to determine the taxbase,deferredtaxismeasuredbasedonManagement’splanned use of the asset or settlement of the liability re-spectively.

Deferredtaxassets,includingthetaxbaseoftaxlosscarry-forwards,arerecognisedunderothernon-currentassetsattheexpectedvalueoftheirutilisation,eitherasaset-offagainsttaxonfutureincomeorasaset-offagainstdeferredtaxliabilitieswithinthesamelegaltaxentityandjurisdic-tion.

Deferredtaxassetsandliabilitiesareoffsetwithinthesamelegaltaxunitorjurisdiction.Deferredtaxassetsaremeas-uredatthevalueatwhichtheyareexpectedtoberealised.

Deferredtaxismeasuredusingthetaxrateexpectedtoapplywhentimingdifferencesarereversed.Changesinde-ferred tax as a result of changes in tax rates are recognised in the income statement.

assets

Non-current assets in generalIntangible assets and property, plant and equipment, except forgoodwillandotherintangibleassetswithindefiniteuseful lives, are measured at cost less accumulated straight-line amortisation and depreciation and impairment losses. Goodwillandintangibleassetswithindefiniteusefullivesare measured at cost less accumulated amortisation and im-pairment losses. Amortisation, depreciation and impairment losses are recognised in the income statement.

Thebasisofdepreciationiscalculatedwithdueconsidera-tion to the asset’s residual value, reduced by any impair-ment losses. The residual value is determined at the date of acquisition and revalued each year. Where the residual value exceeds the carrying amount, the asset ceases to be depreciated.

If the depreciation period or the residual value is changed, theeffectondepreciationgoingforwardisrecognisedasachange in accounting estimates.

Cost includes direct costs related to the asset and the initial estimate of the costs related to dismantling and removing theitemandrestoringthesiteonwhichitislocated,ifthecostsmeetthedefinitionofaliability.Costfurtherincludesborrowingcostsfromspecificandgeneralborrowingsdirectly relating to the acquisition, construction or develop-ment of the individual qualifying asset.

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Where parts of an item of property, plant and equipment havedifferentusefullives,theyareaccountedforassepa-rate items.

Eachyear,theassetsarereviewedinordertoassesswheth-er there are indications of impairment. If such indications exist, the recoverable amount, determined as the higher amountofthefairvalueoftheassetadjustedforexpectedsales costs and the value in use of the asset, is calculated. The value in use is calculated based on the estimated future cashflows,discountedbyusingapre-taxdiscountratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecifictotheasset.

If the recoverable amount of an asset or its cash-generating unitislowerthanthecarryingamount,animpairmentcharge is recognised in respect of the asset. The impairment loss is recognised in the income statement.

Inaddition,forgoodwillandotherintangibleassetswithindefiniteusefullives,impairmenttestsareperformedateachbalancesheetdate,regardlessofwhetherthereareanyindicationsofimpairment.Foracquisitions,thefirstimpairment test is performed before the end of the year of acquisition.

Impairment losses are reversed if the recoverable amount increases.Impairmentlosseswillonlybereversedtotheextent that the value in use does not exceed the carrying amount of the asset if the impairment had never been made.Impairmentlossesongoodwillarenotreversed.

intangible assetsGoodwillisrecognisedinthebalancesheetatcostoninitialrecognitionasdescribedunder“Businesscombinations”.Goodwillissubsequentlymeasuredatcostlessaccumulatedimpairment.Goodwillisnotamortised.

Intangible assets acquired on acquisition are measured at cost less accumulated amortisation and impairment. Intan-gible assets acquired on acquisitions are amortised over the expected economic life, estimated to be 3 to 10 years.

Other intangible assets are measured at cost including costs whichcanbedirectlyorindirectlyattributedtotheassetsinquestion less accumulated amortisation and impairment.

Otherintangibleassetsincludesoftware,etc.Softwareisamortised on a straight-line basis over the expected eco-nomic life, estimated to be 3 to 5 years. The economic lives of large administrative systems are estimated to be 8 years.

Property, plant and equipmentLand and buildings are measured at cost less accumulated depreciation and impairment of buildings.

Depreciationofbuildingsiscalculatedonastraight-lineba-sis over the expected useful lives of the assets, estimated to bebetween25and33years.Certaininstallationsaredepre-ciated over ten years.

Leasehold improvements are depreciated on a straight-line basis over the term of the lease.

Other operating equipment is depreciated on a straight-line basis over the estimated useful lives of the assets. The ex-pectedusefullivesareasfollows:

years

Vehicles according to category 5-12Fixturesandfittings,toolsandequipment 3-10Dispatchcentres,radiosystems,majoradministrativesystemsandnetworks 8Other IT equipment 3-5Fire extinguishers and similar equipment installed at customer locations 3-5

Assetsheldunderfinanceleasesarerecognisedunderproperty,plantandequipmentandmeasuredatthelowerof the fair value and value in use of the future lease pay-ments at the inception of the lease.

Assetsheldunderfinanceleasesaredepreciatedovertheuseful lives of the assets or, if shorter, over the lease term.

Gains or losses on the disposal or scrapping of property, plantandequipmentaredeterminedasthedifferencebetweenthesalespricelessdismantling,sellingandre-es-tablishing costs and the carrying amount. Any gains or losses are recognised in the income statement as other operating income or external expenses respectively.

AssociatesInvestmentsinassociatesintheconsolidatedfinancialstatements are measured using the equity method and recognised at the proportionate share of the equity of the relevant enterprise, made up according to the Group’s ac-countingpolicies,withtheadditionofvaluesaddedonacquisition,includinggoodwill.Investmentsinassociatesaretestedforimpairmentwhenthereisanindicationthattheinvestmentmaybeimpaired.Associateswithanegativeequityvaluearerecognisedatzero.IftheGrouphasalegalor constructive obligation to cover the associate’s nega-

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tive balance, such obligation is recognised under liabilities. Receivablesfromassociatesaremeasuredatamortisedcost. Provision is made for bad debts.

inventoriesGoods for resale and consumables are measured at cost using the FIFO method. Where the net realisable value is lowerthancost,inventoriesarewrittendowntothislowervalue.

ReceivablesReceivablesaremeasuredatamortisedcostlessprovisionforbaddebts.Write-downsaremadeindividuallyandonaportfoliolevel.Intheeventthereisnoobjectiveindicationofindividualimpairment,receivablesaretestedforobjec-tive indications of impairment on a portfolio level.

Impairmentlossesarecalculatedasthedifferencebetweenthe carrying amount and the present value of expected futurecashflows,includingrealisablevaluesofanycollat-eral provided.

PrepaymentsPrepaymentscompriseprepaidcosts,whicharemeasuredatamortised cost.

Securities and other investmentsListedsecuritiesandunlistedsecurities,whicharecurrentlyallclassifiedasavailableforsale,arerecognisedatfairvalue,correspondingtotheofficiallyquotedpriceoflistedsecuri-ties and estimated fair values based on current market data and recognised valuation methods for unlisted securities. Unrealisedfairvalueadjustmentsarerecogniseddirectlyinother comprehensive income, except for impairment losses, whicharerecognisedintheincomestatementunderfinan-cials.Onrealisation,theaccumulatedfairvalueadjustmentrecognised in other comprehensive income is transferred to financialsintheincomestatement.

eQuity

DividendDividendthathasbeenfinallyadoptedisrecognisedasali-ability.

Hedging reserveHedge transactions that meet the criteria for hedging future cashflowsandforwhichthehedgedtransactionhasyettobe realised are recognised in equity through other compre-hensive income under the hedging reserve.

Foreignexchangeadjustmentsrelatingtohedgingtransac-tions used to hedge the Group’s net investments in such en-tities are recognised in equity through other comprehensive income under the hedging reserve.

Currency translation reserveForeignexchangeadjustmentsarisingonthetranslationoffinancialstatementsforentitieswhichhaveafunctionalcurrencyotherthanDKKandforeignexchangeadjustmentsrelatingtofinancialassets,andliabilitiesrepresentingapartof the Group’s net investment in such entities are recog-nised in equity through other comprehensive income under the currency translation reserve.

On full or partial realisation of a net investment, foreign exchangeadjustmentsarerecognisedintheincomestate-ment.

Non-controlling interestsTheproportionatesharesoftheprofitsandequityofsub-sidiaries attributable to non-controlling interests are recog-nised as a separate item under equity. On initial recognition, non-controlling interests are recognised as described under “Businesscombinations”.

Put options issued as part of the consideration for business combinationsarerecognisedasdescribedunder“Acquisi-tionanddivestmentofnon-controllinginterests”above.

Warrant programme, Executive Management BoardWarrants are issued at the market value on the date of grant.Paymentsreceivedandmadeinrelationtothewar-rant programme are recognised in equity.

Share-based paymentWarrants granted are acquired at market value. The amount received is recognised as a liability in the balance sheet until thewarrantsareeitherboughtbackbytheCompany,exer-cised,orexpirewithoutbeingexercised.Themarketvalueofthewarrantsgrantedisestimatedusinganoptionpricingmodel. The calculation takes into account the terms and conditionsofthewarrantsgranted.

liaBilities

Pension obligationsMostoftheGroup’spensionagreementsaredefinedcon-tributionplansunderwhichpaymentsaremadetoexternalpension institutions. Contributions to such plans are recog-nisedintheincomestatementintheperiodinwhichtheyare earned by the employees, and outstanding payments are included in the balance sheet under other payables.

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In certain countries, the Group has pension agreements that aredefinedbenefitplans.Theseplansareeitherexternallyfunded,withtheassetsoftheplansheldseparatelyfromthose of the Group in independently administered funds, or unfunded.Theliabilitiesrelatedtothedefinedbenefitplansaredeterminedusingtheprojectedunitcreditmethod.

An actuarial assessment is made annually to determine the presentvalueofthefuturebenefitstobepaidunderthedefinedbenefitplans.Thepresentvalueiscalculatedonthebasis of assumptions regarding the future developments in thewage/salarylevelaswellasinterest,inflation,pension-ableageandmortalityratesinthecountrieswheresuchplansexist.Thepresentvalueiscalculatedonlyforbenefitstowhichtheemployeeshavealreadyearnedtherightdur-ingtheiremploymentwiththeGroupuntilthepresenttime.

The actuarial calculation of the pension obligation is rec-ognised as a liability in the balance sheet. If a pension plan constitutes a net asset, the asset is only recognised to the extent that it equals future repayments under the plan, or if itwillleadtoareductioninfuturepaymentsundertheplan.

Actuarial gains and losses arise mainly from changes in actuarialassumptionsanddifferencesbetweenactuarialassumptionsandwhathasactuallyoccurred,determinedat the end of the year. Actuarial gains and losses are recog-nised directly in other comprehensive income.

Fordefinedbenefitplans,costschargedtotheincomestatement consist of current service cost, based on actuarial assessmentsandfinancialforecastsmadeatthebeginningof the year, including expected service cost, interest cost, expected return on plan assets and past service cost. The pastservicecostfortheenhancementofpensionbenefitsisaccountedforwhensuchbenefitsvestorbecomeacon-structive obligation.

Interest from pension assets and liabilities is recognised underfinancials.

Othernon-currentemployeebenefitsaresimilarlyrecog-nisedbasedonanactuarialcalculation.However,allactuari-al gains and losses are recognised immediately in the income statement. Other non-current employee obligations include jubileebonusesandnon-currentseveranceschemes.

ProvisionsProvisionsarerecognisedwhen,asaconsequenceofanevent occurring before or on the balance sheet date, the Group has a legal or constructive obligation and it is prob-ablethatanoutflowofresourceswillberequiredtosettlethe obligation. The amount recognised as a provision is Management’sbestestimateoftheexpensesrequiredtosettle the obligation.

Provisionsforrestructuringarerecognisedwhenadetailed,formal plan for the restructuring has been made before or on the balance sheet date and has been announced to the partiesinvolved.Inconnectionwithacquisitions,provisionsfor restructuring costs are only included in the computation ofgoodwillifanobligationexistsfortheentityacquiredasof the date of acquisition.

Provisionsaremadeforonerouscontractswhentheantici-patedbenefitstotheGroupfromacontractareoutweighedby the unavoidable costs under the contract.

When the Group is under an obligation to dismantle an asset orre-establishthesitewheretheassethasbeenused,aprovision is made corresponding to the present value of the expected future costs. The provision is determined based on current orders and estimated future costs, discounted totheirpresentvalue.Thediscountfactorusedreflectsthe general level of interest rates. The present value of the costs is recognised in the cost of the item of property, plant andequipmentinquestionanddepreciatedtogetherwiththese assets.

The increase of the present value over time is recognised in theincomestatementunderfinancialexpenses.

Financial liabilitiesDebttocreditinstitutionsisrecognisedattheraisingofaloan at fair value less transaction costs. In subsequent peri-ods,financialliabilitiesaremeasuredatamortisedcost.

Residualleasecommitmentsfromfinanceleasesarerecog-nised at amortised cost.

Otherfinancialliabilitiesaremeasuredatamortisedcost.

Deferred incomeDeferredincomeprimarilyrepresentssubscriptionrevenuerelatingtoseveralfinancialperiods.

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fair value measurementThe Group uses the fair value convention for certain dis-closurerequirementsandfortherecognitionoffinancialinstruments.Fairvalueisdefinedastheamountthatwouldbe received to sell an asset or paid to transfer a liability, respectively,inanorderlytransactionbetweenmarket participants.

Fair value is based on the primary market. If no primary marketexists,fairvaluewillbebasedonthemostadvanta-geousmarket,definedasthemarketthatmaximisestheprice of the asset or liability less transaction and transport costs.

In the determination of fair value, the Group uses, to the widestpossibleextent,observablepricesinactivemarketsforidenticalinstruments(level1).Alternatively,otherobservable inputs are used, such as similar instruments in active markets or identical instruments in markets that are not active, or a valuation model based on other observable marketdata(level2).

To the extent that observable information is not available or cannotbeusedwithoutmaterialmodifications,theGroupuses recognised valuation methods based on all other inputs.

leasingForfinancialreportingpurposes,leaseliabilitiesareclassi-fiedaseitherfinanceoroperatingleaseliabilities.

Leasesareclassifiedasfinanceleaseswhensubstantiallyallrisksandrewardsofownershipoftheleasedassetaretrans-ferred.Otherleasesareclassifiedasoperatingleases.

Theaccountingtreatmentofassetsheldunderfinanceleases and the related liability is described in the sections onproperty,plantandequipmentandfinancialliabilitiesrespectively.

Assets held under operating leases are not recognised in the balance sheet. Lease liabilities under operating leases are disclosed as contingent liabilities.

Lease payments concerning operating leases are recognised in the income statement on a straight-line basis over the term of the lease.

casH floW stateMent

Thecashflowstatementispresentedaccordingtotheindi-rectmethodandshowsthecashflowfromoperatingactivi-ties,thecashflowfrominvestingactivities,thecashflowfromfinancingactivitiesandcashandcashequivalentsatthe beginning and end of the year.

Thecashflowstatementincludescashflowsfromcompa-niesacquiredasfromthedateofacquisition,andcashflowsfrom companies divested until the date of divestment.

Cash flow from operating activitiesCashflowsfromoperatingactivitiesincluderevenuelessoperatingexpensesandinterestadjustedfornon-cashoperatingitemsandchangesinworkingcapital.

Cashflowsfromoperatingactivitiescomprisecashflowsrelated to special items and corporation tax.

Cash flow from investing activitiesCashflowsfrominvestingactivitiesincludecashflowsfromthe acquisition and divestment of companies, non-con-trolling interests and operations, the purchase and sale of intangible assets, property, plant and equipment and other non-current assets and the purchase and sale of securities not included in cash and cash equivalents.

Enteringintoafinanceleaseisconsideredanon-cashtrans-action.

Cash flow from financing activitiesCashflowsfromfinancingactivitiesincludecashflowsfromchanges in share capital and related costs, purchases and salesoftreasuryshares,cashflowsfromdividends,cashflowsfrominterest-bearingdebtraisedandrepaymentthereof.

Cashflowsrelatingtoassetsheldunderfinanceleasesarerecognised as payment of interest and repayment of debt.

Cash and cash equivalentsCash and cash equivalents comprise cash and short-term marketablesecuritieswithatermofthreemonthsorlessatthetimeofacquisitionwhicharesubjecttoaninsignificantrisk of changes in value.

Cashflowsincurrenciesotherthanthefunctionalcurrencyaretranslatedataverageexchangeratesunlessthesediffermaterially from the exchange rate ruling at the transaction date.

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segMent rePorting

The segment information has been prepared in accordance withtheGroup’saccountingpoliciesandisbasedonthe internal management reporting.

Segment income, expenses and assets comprise items that can be directly attributed to individual segments and items that can be allocated to the individual segments on a rea-sonable basis. Unallocated items are primarily assets and income and expenses relating to the Group’s administrative functions, income taxes and similar items.

Non-current assets in a segment comprise non-current assets used directly in the operation of the segment, in-cluding intangible assets, property, plant and equipment and investments in associates. Current assets in a segment comprise current assets used directly in the operation of the segment, including inventories, trade receivables, other receivables, prepaid expenses and cash.

financial ratios

Fordefinitionsoffinancialratios,seepage116.

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Parent | Falck Annual Report 2014 91

Notestotheparentcompanyfinancialstatements

Notes to the balance sheet

7. Investment in subsidiary 98

8. Share capital 99

9. Deferred tax 99

10. Credit institutions 99

11. other payables 100

Notes to the cash flow statement

12. Net financials 100

Supplementary notes

13. Contingent liabilities, contractual

obligations and collateral security 100

14. Financial instruments 101

15. Related parties 104

16. Events after the balance sheet date 104

17. Accounting policies 105

Financial statements

Income statement 92

Statement of comprehensive income 92

Cash flow statement 93

Balance sheet 94

Equity statement 96

Notes to the income statement

1. other operating income 97

2. Fees to auditors appointed

at the annual general meeting 97

3. Staff costs 97

4. Financial income 97

5. Financial expenses 98

6. Income taxes 98

Contents of the parent companyfinancialstatements

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92 Falck Annual Report 2014 | Parent

Income statement fortheyearended31December

note DKK million 2014 2013 1 Other operating income 8 82 Other external costs -3 -3 3 Staffcosts -15 -19

PROFIT BEFORE FINANCIALS -10 -14

Dividendsfromsubsidiary 300 550 4 Financial income 12 6 5 Financial expenses -77 -79

PROFIT BEFORE TAX 225 463

6 Income taxes 18 22

PROFIT FOR THE YEAR 243 485

ProPoseD Profit allocation Proposed dividend 225 - Retainedearnings 18 485

TOTAL 243 485

Statement of comprehensive income fortheyearended31December

note DKK million 2014 2013 Profit for the year 243 485

Items that can be reclassified to the income statement Valueadjustmentofinteresthedginginstruments -27 19 6 Tax on other comprehensive income 7 -5

Other comprehensive income after tax -20 14

TOTAL COMPREHENSIVE INCOME 223 499


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Cashflowstatementfortheyearended31December

note DKK million 2014 2013 Total revenue 8 8 Total costs -18 -22

Profit before financials -10 -14 ChangeinintercompanybalancewithGroupcompanies -244 -84 Dividendfromsubsidiary 300 550 12 Netfinancials -61 -116 6 Income taxes received 16 26

CASH FLOW FROM OPERATING ACTIVITIES 1 362

Sale of treasury shares etc. 4 - Repaymentofinterest-bearingdebt -4 -362

CASH FLOW FROM FINANCING ACTIVITIES - -362

Change in cash and cash equivalents 1 - Cash and cash equivalents at beginning of year - -

CASH AND CASH EQUIVALENTS AT YEAR-END 1 -


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Assets

7 Investment in subsidiary 7,802 7,802 ReceivablesfromGroupcompanies 539 228 9 Deferredtax - 1

TOTAL FINANCIAL ASSETS 8,341 8,031

TOTAL NON-CURRENT ASSETS 8,341 8,031

Tax receivables 29 16 Cash 1 -

TOTAL CURRENT ASSETS 30 16

TOTAL ASSETS 8,371 8,047


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Equity and liabilities

8 Share capital 67 67 Hedging reserve -27 -7 Proposed dividend 225 - Retainedearnings 5,913 5,891

TOTAL EQUITY 6,178 5,951

9 Deferredtax 3 - 10 Credit institutions 1,980 1,984

TOTAL NON-CURRENT LIABILITIES 1,983 1,984

Payables to Group companies 174 104 11 Other payables 36 8

total current liaBilities 210 112

TOTAL EQUITY AND LIABILITIES 8,371 8,047


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Equity statement

Share Hedging Proposed Retained 2014 DKK million capital reserve dividend earnings Total

Equity at 1 January 2014 67 -7 - 5,891 5,951

Equity movements in 2014 Valueadjustmentofinteresthedginginstruments -27 -27Tax on other comprehensive income 7 7

Other comprehensive income - -20 - - -20 Profitfortheyear 225 18 243

Total comprehensive income - -20 225 18 223

Sale of treasury shares etc. - - - 4 4

Total equity movements in 2014 - -20 225 22 227

TOTAL EQUITY AT 31 DECEMBER 2014 67 -27 225 5,913 6,178

2013 DKK million

Equity at 1 January 2013 67 -21 - 5.406 5.452

Equity movements in 2013 Valueadjustmentofinteresthedginginstruments 19 19Tax on other comprehensive income -5 -5

Other comprehensive income - 14 - - 14 Profitfortheyear 485 485

Total comprehensive income - 14 - 485 499

Total equity movements in 2013 - 14 - 485 499

TOTAL EQUITY AT 31 DECEMBER 2013 67 -7 - 5,891 5,951


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note DKK mio 2014 2013

1 other operating income

ManagementfeefromGroupcompanies 8 8

Total other operating income 8 8

2 Fees to auditors appointed at the annual general meeting

Statutory audit -1 -1

Total fees to Deloitte -1 -1

3 Staff costs

RemunerationtotheExecutiveManagementBoard -11 -15RemunerationtotheBoardofDirectors -2 -2

Total remuneration -13 -17

Otherstaffcosts -2 -2

Total staff costs -15 -19

Number of full-time employees 2 2

RemunerationtotheExecutiveManagementBoardincludesbothafixedsalaryandvariableremuneration.ThevariableremunerationisfixedonthebasisoftheGroup’sperformance.ThemembersoftheExecutiveManagementBoarddonotreceivecontributionstopensionplans.

TheservicecontractsforthemembersoftheExecutiveManagementBoardincludeseveranceperiodswhich,incaseofresignationbyanexecutive,are6monthsand,incaseofterminationbythe Company, are 12 months.

4 Financial income

Interest from Group companies 12 6

Total financial income 12 6


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5 Financial expenses

Interest to credit institutions -73 -76 Otherfinancialexpenses -4 -3

Total financial expenses -77 -79

6 Income taxes

Current tax 18 22 Change in deferred tax for the year - - Prior-yearadjustments - -

Total income taxes 18 22 Tax on other comprehensive income 7 -5

Total tax 25 17

Income taxes received 16 26

Breakdown of tax rate: Total income taxes 18 22

Tax base for the year 225 463

Effective tax rate -8.0% -4.8%

Danishtaxrate 24.5% 25.0%Non-deductiblecostsandtax-exemptincome -32.5% -29.8%Otheradjustmentsincludingadjustmentsrelatingtoprioryears 0.0% 0.0%

Effective tax rate -8.0% -4.8%

Tax on other comprehensive income Taxonvalueadjustmentsofinteresthedginginstruments 7 -5

Total tax on other comprehensive income 7 -5

7 Investment in subsidiary

Costat1January 7,802 7,802Additions - -

Cost at 31 December 7,802 7,802

Carrying amount at 31 December 7,802 7,802

Investmentinsubsidiaryrepresents100%ofthesharecapitalofFalckA/S.Thesharesarepledgedinsecurityofthecompany’s liabilities.


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8 Share capital

Sharecapitalat1January 67 67Capital increase through cash payment - -

Share capital at 31 December 67 67

Thesharecapitalisdividedinto66,952,345shareswithanominalvalueofDKK1.00each.Theshares are fully paid up and are not divided into classes. Thecompanywasfoundedon1April2011asaprivatelimitedcompany(ApS)withasharecapitalofDKK80,000.Thecompanywasconvertedintoapubliclimitedcompany(A/S)on5July2011,andonthatoccasion,itssharecapitalwasincreasedbyDKK67million.

9 Deferred tax

Deferredtaxassetsat1January 1 1Change in deferred tax for the year -4 -

Deferred tax provisions at 31 December -3 1

Deferredtaxprovision -3 1


Breakdown of deferred tax: Non-current liabilities and provisions -3 1


10 Credit institutions

Long-term loans 1,980 1,984 Short-term loans - -

Total credit institutions 1,980 1,984

Breakdown by maturity: Duewithin1year - -Duebetween1and5years 1,980 1,984Dueafter5years - -

Total 1,980 1,984

Breakdown by currency: DKK 1,980 1,984

Total 1,980 1,984


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10 Credit institutions (continued)

Interest reset period: Within 3 months 1,980 1,984

Total 1,980 1,984

Thefiguressetoutabovedonotincludetheeffectofinterestrateswaps. Seenote30totheconsolidatedfinancialstatementsforadescriptionoftheGroup’srisks and cash resources. Theeffectiveinterestratehasbeendeterminedat3.9%(2013:3.7%). Fordebtwithaninterestresetperiodwithin3months,regularassessmentsaremade ofhowlongtheinterestperiodshouldbe.Asatthebalancesheetdate,theinterestratein DKKwasfixedforonemonthandaveragedapproximately2.9%(2013:2.9%)duringthefinancialyear.Theinterestratehasbeendeterminedwithouttheeffectofinterestrateswaps. DKK16million(2013:DKK20million)ofcapitalisedloancostshasbeendeductedfrom the carrying amount of debt.

11 other payables

Fairvalueofinterestrateswap 36 8

Total other payables 36 8

12 Net financials

Financial income and expenses -65 -73 Settlementoffinancialcontracts - -46Amortisation 4 3

Net financials -61 -116

13 Contingent liabilities, contractual obligations and collateral security

FalckHoldingA/SisjointlyandseverallyliablefortheGroup’soverallVATliabilitytogetherwiththeotherjointlyregisteredDanishcompanies. Joint taxation FalckHoldingA/SistaxedjointlyinDenmarkwithLundbeckfondInvestA/Sasadministrationcompany.PursuanttotherulesofDanishCorporationTaxActthereon,thecompanyisliablefromandincludingthefinancialyear2013forincometaxesetc.forthejointlytaxedcompaniesandfromandincluding1July2012foranyobligationstowithholdtaxatsourceoninterest,royaltiesanddividendsfromthejointlytaxedcompanies.


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note DKK million

14 Financial instruments

interest rate risk TheinterestrateriskofFalckHoldingA/Sismainlyaffectedbythecompany’sloans.Basedonthecurrentmarketsituation,thecompany’sExecutiveManagementBoardandtheBoardofDirectorshavedecidedtoextendtheexistinginterestrateswaps,sothatapproximately85%ofthesyndicatedloansofFalckHoldingA/SareatfixedratesofinterestviainterestrateswapsthatexpireintheperioduntilJune2019.Theremainderofthesyndicatedloansarebasedonashort-terminterestrate.Forthisreason,FalckHoldingA/Sisonlytoaminorextentsensitivetofluctuationsinmarketinterestrates,andafluctuationby1%wouldchangetheinterestexpensefortheyearbyDKK3million(2013:DKK7million).Withoutthesehedges,afluctuationby1%wouldchangetheGroup’sinterestexpensebyDKK20million(2013:DKK20million). Theinterestrateexposureishedgedbyinterestrateswapstotheeffectthatthebasicrateofinterestonthedebtcannotexceed3.14%includingthecurrentinterestratemargin. FalckHoldingA/Smonitorsdevelopmentsinmarketinterestratescloselyinordertobeabletoreactifthemarketsituationchanges. Assumptions regarding sensitivity information Thesensitivitystatedhasbeendeterminedbasedontherecognisedfinancialassetsandliabilitiesasat31December2014.Noadjustmenthasbeenmadeforservicingandraisingofdebtorthelikein2014.Furthermore,itisassumedthatallhedgesoffloating-rateloansaredeemedtobeeffective.

Due Contrac- Due between Due tual total within 1 and 5 after 5 cash carrying Market Contractual cash flows including interest 2014 1 year years years flows amount value

Financial assets: ReceivablesfromGroupcompanies - 539 - 539 539 539

Loans and receivables - 539 - 539 539 539

Derivativefinancialinstrumentstohedge futurecashflows 19 15 - 34 34 34


Total financial assets 19 554 - 573 573 573

Financial liabilities: Credit institutions 48 2,168 - 2,216 1,980 2,000 Payables to Group companies 174 - - 174 174 174

Financial liabilities measured at amortised cost 222 2,168 - 2,390 2,154 2,174

Derivativefinancialinstrumentstohedgefuture cashflows 33 37 - 70 70 70

Financial liabilities used as hedging instruments 33 37 - 70 70 70

Total financial liabilities 255 2,205 - 2,460 2,224 2,244


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note DKK million



Financial assets: ReceivablesfromGroupcompanies - 228 - 228 228 228

Loans and receivables - 228 - 228 228 228

Derivativefinancialinstrumentstohedge futurecashflows 18 8 - 26 26 26


Total financial assets 18 236 - 254 254 254

Financial liabilities: Credit institutions 58 2.229 - 2.287 1.984 2.000 Payables to Group companies 104 - - 104 104 104

Financial liabilities measured at amortised cost 162 2,229 - 2,391 2,088 2,104

Derivativefinancialinstrumentstohedgefuturecashflows 29 5 - 34 34 34

Financial liabilities used as hedging instruments 29 5 - 34 34 34

Total financial liabilities 191 2,234 - 2,425 2,122 2,138

Hedging and derivative financial instruments Thefairvalueoftheeffectivepartoftheoutstandingforeignexchangecontractsasat31Decemberusedashedginginstrumentsand qualifying for hedge accounting in respect of future transactions is recognised directly in equity until the hedged transactions are recognised in the income statement. Interest rate swaps: Bought Sold to subsidiaries

2014 2014

Hedged Market Hedged Market value value value value DKKinterestrateswap(fixedrate0.56%)expiresinJune2016 725 -9 725 9DKKinterestrateswap(fixedrate0.89%)expiresinSeptember2017 2,015 -35 300 2USDinterestrateswap(fixedrate1.14%)expiresinSeptember2017 441 -1 441 1EURinterestrateswap(fixedrate0.67%)expiresinSeptember2017 1,198 -23 1,198 22DKKinterestrateswap(fixedrate0.53%)expiresinJune2019 1,700 -2 - -

-70 34 Ofwhichrecognisedinincomestatement - -



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note DKK million

14 Finansielle instrumenter (fortsat)

Interest rate swaps: Bought Sold to subsidiaries

2013 2013

Hedged Market Hedged Market value value value value DKKinterestrateswap(fixedrate1.40%)expiredinAugust2014 2,300 -19 1,000 7DKKinterestrateswap(fixedrate0.56%)expiresinJune2016 725 - 725 -DKKinterestrateswap(fixedrate0.88%)expiresinSeptember2017 2,015 3 - -USDinterestrateswap(fixedrate0.55%)expiredinAugust2014 406 -1 406 1USDinterestrateswap(fixedrate1.14%)expiresinSeptember2017 390 2 390 -2EURinterestrateswap(fixedrate1.17%)expiredinAugust2014 1,492 -9 1,492 9EURinterestrateswap(fixedrate0.67%)expiresinSeptember2017 1,201 2 1,201 -2

-22 13 Ofwhichrecognisedinincomestatement - -


Methods and assumptions for the determination of fair values Interestrateswapsarevaluedusinggenerallyacceptedvaluationtechniquesbasedonrelevantobservableswapcurvesand exchange rates. 2014

Quoted Non- market observable observable Fair value hierarchy for financial instruments prices input input measured at fair value in the balance sheet (Level 1) (Level 2) (Level 3) Total Financial assets Derivativefinancialinstrumentstohedgefuturecashflows - 34 - 34


Financial liabilities Derivativefinancialinstrumentstohedgefuturecashflows - 70 - 70


2013

Quoted Non- market observable observable Fair value hierarchy for financial instruments prices input input measured at fair value in the balance sheet (Level 1) (Level 2) (Level 3) Total Financial assets Derivativefinancialinstrumentstohedgefuturecashflows - 26 - 26


Financial liabilities Derivativefinancialinstrumentstohedgefuturecashflows - 34 - 34



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15 Related parties

FalckHoldingA/SissubjecttocontrollinginfluencebyLundbeckfondInvestA/S, Scherfigsvej7,DK-2100Copenhagen,Denmark,whichholds57.4%ofthesharecapital.LundbeckfondInvestA/SisownedbytheLundbeckFoundation. Falck Holding A/S has registered the following shareholders who hold 5% or more of the share capital:

LundbeckfondInvestA/S,Copenhagen 57.4% 57.4%KIRKBIInvestA/S,Billund 27.7% 26.5%LiberatioA/S,Copenhagen(ownedbythemembersoftheExecutiveManagementBoard) 10.3% 10.3% Duringtheperiod,therewerenotransactionswiththeserelatedparties. Asparentcompany,FalckHoldingA/ShasacontrollinginterestintheFalckGroup. TradingwithotherGroupcompanies: Managementfeepaid 2 2Managementfeereceived 8 8Interest received 12 6 Management RelatedpartiesinFalckHoldingA/SwithsignificantinfluenceincludetheGroup’sExecutiveManagementBoardandBoardofDirectorsandtheircloserelatives.Relatedpartiesalsocomprisecompaniesinwhichtheseindividualshavematerialinterests. Tradingwithexecutiveswasasfollows: Saleofwarrantsasdescribedinnote6totheconsolidatedfinancialstatements 5 - FalckHoldingA/ShadnotransactionsduringthefinancialyearwiththemembersoftheExecutiveManagementBoard,BoardofDirectorsorotherpersonswithsignificant influenceotherthantheremunerationpaidtoexecutives,statedinnotes5and6 totheconsolidatedfinancialstatements.

16 Events after the balance sheet date

Noeventshaveoccurredafterthebalancesheetdatethathaveamaterialimpactonthefinancialpositionofthecompany.


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Thecompany’sfinancialstatementsarepresentedinaccord-ancewiththeInternationalFinancialReportingStandardsasadoptedbytheEUandadditionalDanishdisclosurere-quirements for the annual reports of large reporting class C companies.

iMPleMentation of neW financial rePorting regulations

Seenote34totheconsolidatedfinancialstatementsforadescription.

accounting Policies

The parent company basically applies the same accounting policies for recognition and measurement as the Group. The accounting policies applied by the parent company deviate from the accounting policies set out in note 34 to the con-solidatedfinancialstatementsinthefollowingrespects:

Dividend from group companiesDistributionsofretainedearningsinsubsidiariesarerec-ognised as income in the income statement of the parent companyintheyearinwhichthedividendisdeclared.Animpairment test is made if more than the comprehensive income of a subsidiary is distributed.

investments in subsidiariesInvestments in subsidiaries are measured at cost in the par-entcompanyfinancialstatements.Costincludestheconsid-eration at fair value plus direct acquisition costs.

If there is an indication of impairment, an impairment test is performed as described in the accounting policies applying totheconsolidatedfinancialstatements.Wherethecarryingamount exceeds the recoverable amount, the investments arewrittendowntothislowervalue.

In the event of distribution of other reserves than retained earningsinasubsidiary,suchdistributionwillbedeductedfrom the acquisition price, if the distribution is in the nature of repayment of the parent company’s investment.

note

17 Accounting policies


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Management’sstatement

TheBoardofDirectorsandtheExecutiveManagementBoardtodayconsideredandapprovedtheannualreportofFalckHoldingA/Sfor2014.

TheannualreporthasbeenpreparedinaccordancewiththeInternationalFinancialReportingStandards(IFRS)asadoptedby theEUandadditionalDanishdisclosurerequirementsforannualreports.Inouropinion,theaccountingpoliciesappliedareappropriate,andtheGroup’sandtheparentcompany’sfinancialstatementsgiveatrueandfairviewoftheGroup’sandthe parentcompany’sassets,liabilitiesandfinancialpositionasat31December2014andoftheresultsoftheGroup’sandthe parentcompany’soperationsandcashflowsforthefinancialperiod1January-31December2014.

Furthermore,inouropinion,theManagement’sreviewincludesafairreviewofdevelopmentsintheoperationsandfinancialpositionoftheGroupandtheparentcompany,thefinancialresultsfortheyearandtheGroup’sandtheparentcompany’s financialposition.

We recommend the annual report to be approved by the shareholders at the annual general meeting.

Copenhagen,18March2015

Executive Management Board:

AllanSøgaardLarsen MortenR.PedersenPresidentandCEO DeputyCEO

Board of Directors:

Thorleif Krarup Lars Frederiksen Steen HemmingsenChairman DeputyChairman

KarenKoh DortheMikkelsen SørenThorupSørensen


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Content Management’s statement


MAnAGeMenTS STATeMenT


To the shareholders of Falck Holding A/S

Report on the consolidated financial statements and parent financial statementsWehaveauditedtheconsolidatedfinancialstatementsandparentfinancialstatementsofFalckHoldingA/Sforthefinancialyear1January-31December2014,whichcomprisetheincomestatement,statementofcomprehensiveincome,balancesheet,state-mentofchangesinequity,cashflowstatementandnotes,includingtheaccountingpolicies,fortheGroupaswellastheParent.TheconsolidatedfinancialstatementsandparentfinancialstatementshavebeenpreparedinaccordancewithInternationalFinan-cialReportingStandardsasadoptedbytheEUanddisclosurerequirementsoftheDanishFinancialStatementsAct.

Management’s responsibility for the consolidated financial statements and parent financial statementsManagementisresponsibleforthepreparationofconsolidatedfinancialstatementsandparentfinancialstatementsthatgiveatrueandfairviewinaccordancewithInternationalFinancialReportingStandardsasadoptedbytheEUanddisclosurerequirementsoftheDanishFinancialStatementsActandforsuchinternalcontrolasManagementdeterminesisnecessarytoenabletheprepara-tionofconsolidatedfinancialstatementsandparentfinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraud or error.

Auditor’s responsibilityOurresponsibilityistoexpressanopinionontheconsolidatedfinancialstatementsandparentfinancialstatementsbasedonouraudit.WeconductedourauditinaccordancewithInternationalStandardsonAuditingandadditionalrequirementsunderDanishauditregulation.Thisrequiresthatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassur-anceaboutwhethertheconsolidatedfinancialstatementsandparentfinancialstatementsarefreefrommaterialmisstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresintheconsolidatedfinancialstatementsandparentfinancialstatements.Theproceduresselecteddependontheauditor’sjudgement,includingtheassess-mentoftherisksofmaterialmisstatementsoftheconsolidatedfinancialstatementsandparentfinancialstatements,whetherdueto fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of consolidatedfinancialstatementsandparentfinancialstatementsthatgiveatrueandfairviewinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of ac-countingestimatesmadebyManagement,aswellastheoverallpresentationoftheconsolidatedfinancialstatementsandparentfinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

Ouraudithasnotresultedinanyqualification.

OpinionInouropinion,theconsolidatedfinancialstatementsandparentfinancialstatementsgiveatrueandfairviewoftheGroup’sandtheParent’sfinancialpositionat31December2014,andoftheresultsoftheiroperationsandcashflowsforthefinancialyear1January-31December2014inaccordancewithInternationalFinancialReportingStandardsasadoptedbytheEUanddisclosurerequirementsoftheDanishFinancialStatementsAct.

Statement on the management reviewPursuanttotheDanishFinancialStatementsAct,wehavereadthemanagementreview.Wehavenotperformedanyfurtherproce-duresinadditiontotheauditoftheconsolidatedfinancialstatementsandparentfinancialstatements.

Onthisbasis,itisouropinionthattheinformationprovidedinthemanagementreviewisconsistentwiththeconsolidatedfinancialstatementsandparentfinancialstatements.

Copenhagen,18March2015

DeloitteStatsautoriseretRevisionspartnerselskab

KirstenAaskovMikkelsen ErikHolstJørgensenState Authorised Public Accountant State Authorised Public Accountant

Independent auditor’s reports


Management review


Content Management’s statement


indePendenT AUdiTorS rePorT


BoardofDirectors,ExecutiveManagementBoardandauditors

Steen Hemmingsen, born 1945

Memberoftheboardsofdirectorsof:• Obel-LFIEjendommeA/S• EAC Foundation

Søren Thorup Sørensen, born 1965CEOofKIRKBIA/S,KIRKBIInvestA/SandKoldingvej2,BillundA/S

Memberoftheboardsofdirectorsof:• K&CHolding(chairman)• BostonHoldingA/S(chairman)• TopdanmarkA/S,TopdanmarkForsikringA/Sand DanskeForsikringA/S(chairman)

• KIRKBIAG(deputychairman)• INTERLEGOAG(deputychairman)• LEGOA/S• LEGOJurisA/S• KIRKBIInvestA/S• TDCA/S• Koldingvej2,BillundA/S• MerlinEntertainmentsPLC

BoarD of Directors

Thorleif Krarup, born 1952Chairman

Memberoftheboardsofdirectorsof:• ExiqonA/S(chairman)• BrøndbyernesI.F.FodboldA/S(deputychairman)• ALK-AbellóA/S• H.LundbeckA/S• LundbeckfondInvestA/S• The Lundbeck Foundation

Lars Frederiksen, born 1958Deputychairman

Memberoftheboardsofdirectorsof:• MatasA/S(chairman)• DanishCommitteeonCorporateGovernance (deputychairman)

• RockwoolInternationalA/S• WidexA/S• AugustinusIndustriA/S• DanzigmannHoldingA/S• HøjsandeHoldingA/S• HedorfHoldingA/S• Hedorf Foundation• PAIPartnersSA(supervisoryboardmember)


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ContentboArd oF direCTorS exe


Karen Koh, born 1960 ExecutiveDirector,NutmegManagementPartnerinMyanmarInvestmentGroupCorporator of Northeastern University, Boston USA

Dorthe Mikkelsen, born 1967SeniorVicePresident,MerckGroup

Memberoftheboardsofdirectorsof:• TheDanishAssociationofthePharmaceuticalIndustry (chairman)

• Ethical Committee for the Pharmaceutical Industry (chairman)

• AmericanChamberofCommerceinDenmark (deputychairman)

eXecutiVe ManageMent BoarD

Allan Søgaard Larsen, born 1956President and CEO

Memberoftheboardsofdirectorsof:• PensionDanmarkHoldingA/SandPensionDanmarkA/S• AmbuA/S• Løkke Foundation• WelfareTech(chairman)

Morten R. Pedersen, born 1968DeputyCEO

Memberoftheboardofdirectorsof:• Stibo Foundation

auDitors aPPointeD By tHe general Meeting

DeloitteStatsautoriseretRevisionspartnerselskabWeidekampsgade 6DK-2300CopenhagenS

by/KirstenAaskovMikkelsenandErikHolstJørgensenState Authorised Public Accountants

TheBoardofDirectorsofFalckHoldingA/SphotographedtogetherwiththeemplooyeerepresentativesontheboardsofFalckA/SandFalckDanmarkA/S(JanHeineLauvring,HenrikVillsenAndersen,AllanRensgaardandVagnFlinkMøllerPedersen)


Management review




Content


Falck Holding A/SPolititorvet DK-1780CopenhagenVDenmark

Tel.: +45 7033 3311

www.falck.comwww.falck.dk

CVRno.33597045

Company information


Management review




ContentCoMPAny inForMATion


Legal entities in the Falck Group asat31December

FalckHoldingA/S Denmark FalckA/S Denmark 100% FalckDanmarkA/S Denmark 100% FalckEmergencyA/S Denmark 100% FalckTreasuryA/S Denmark 100% FalckHealthCareHoldingA/S Denmark 59,4% FalckHealthCareA/S Denmark 100% FalckDentalCareApS Denmark 100% FalckHjælpemidlerA/S Denmark 100% VikteamA/S Denmark 80% ActivCarePrivatA/S Denmark 100% FalckHealthCareNorwayA/S Norway 100% SirculusApS Denmark 55% FalckHealthcareCSHoldingA/S Denmark 100% FalckJobServiceA/S Denmark 100% FalckLægehuseA/S Denmark 100% QuickcareA/S Denmark 100% QuickcareNorwayAS Norway 100% AktivHelseBedriftshelsetjenestenAS Norway 100% AktivHelseGrenland Norway 100% BedriftstjenestenAS Norway 100% FalckHealthCareHoldingAB Sweden 100% FalckAktivArbetsmedicinAB Sweden 100% FalckHealthcareAB Sweden 100% SkandinaviskHälsovårdAB Sweden 100% SvenskNärsjukvårdAB Sweden 100% DocCareAB Sweden 100% OfeliaVårdAB Sweden 100% ABPrevia Sweden 100% SilverhälsanAB Sweden 100% InlandshälsanAB Sweden 100% PreviaSjukvårdAB Sweden 100% GallerivaHusläkarmottagningAB Sweden 100% FalckLuftambulanceA/S Denmark 100% FalckAirAB Sweden 100% ActivCareA/S Denmark 100% FalckAssistanceA/S Denmark 100% FalckAirAmbulanceA/S2) Denmark 50% TraffilogNordicApS2) Denmark 49% FalckFireServicesA/S Denmark 100% FalckFireServicesGreenlandA/S Denmark 100% FalckFireServicesDEGmbH Germany 100% FalckFireServicesCHAG Schwitzerland 100% FalckFireServicesBENV Belgium 100% FalckFireServicesEasternEuropeHoldingA/S Denmark 100% FalckFireServicesPolskaSp.zo.o.2) Poland 100% FalckNorwayHoldingAS Norway 100% FalckRedningAS Norway 100% FalckEmergencyAS Norway 100% FalckAmbulanseAS Norway 100% FalckEmergencyNorwayAS Norway 100% FalckServicesAS Norway 100% FalckSafetyServicesHoldingA/S Denmark 100% FalckSafetyServicesA/S Denmark 100% FalckGlobalSafetyB.V. Netherlands 100% FalckNutecAS Norway 100% FalckNutecLtd. UK 100% Nutec Centre for Safety Ltd. 1) UK 100% FalckOnsiteLimited UK 100% Onsite Training Services Limited 1) UK 100%

Company name Country Equity interest


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ContentleGAl enTiTieS


FalckNutecTrinidadandTobagoLimited Trinidad&Tobago 80% NutecUKLtd. UK 100% Nutec Belgium Holding BVBA 1) Belgium 100% Nutec Belgium BVBA 1) Belgium 100% FalckNutecB.V. Netherlands 100% MarinesafetyInternationalRotterdamB.V. Netherlands 100% MSTSAsiaSdn.Bhd. Malaysia Risktec(M)Sdn.Bhd. Malaysia 1 0% FalckBestariHealthcareSdn.Bhd. Malaysia 82% MSTSAsia(S’pore)Pte.Ltd. Singapore 100% FalckNutecMalaysiaSdn.Bhd. Malaysia 70% FalckBHVOperationsB.V. Netherlands 100% FalckSafetyServicesNigeriaLimited Nigeria 51% FalckPrimeAtlanticLimited Nigeria 51% FalckCaspianSafeLLC Azerbaijan 65% FalckSafetyServicesCanadaLtd. Canada 55% NewfoundlandandLabradorInc Canada 100% FalckSafetyServicesBelgiumBVBA Belgium 100% FalckNutecBrasilParticipacoesLtda Brasilien 100% FalckNutecBrasilTreinamentosemSegurançaMarítimaLtda Brasilien 100% SouthfieldLtd Thailand 50% FalckNutec(Thailand)Ltd Thailand 65% FalckUSAHoldings,Inc USA 100% FalckAlfordHoldings,Inc USA 80% AlfordServices,Inc USA 100% AlfordSafetyServices,Inc USA 100% HaztecServices-WestIndies,LLC USA 100% HaztecServicesSt.LuciaLtd St.Lucia 100% HaztecServicesTrinidadLimited Trinidad&Tobago 100% OccupationalSafetyTraining,Inc USA 100% FalckAlfordInternationalBV Netherlands 100% FalckHoldingdeMéxico,S.A.deC.V. Mexico 100% FalckSafetyServicesdeMéxico,S.A.P.I.deC.V. Mexico 55% FalckNutecVietnamLimited Vietnam 88% FalckSafetyServicesLLC UnitedArabEmirates 49% FalckSafetyServicesLLC Qatar 49% FalckGlobalAssistanceNorwayAS Norway 100% FalckSwedenHoldingAB Sweden 100% FalckInvestmentSwedenAB Sweden 100% FalckRäddningskärAB Sweden 100% FalckSecurityAB Sweden 100% FalckForsäkringAB Sweden 100% FalckGlobalAssistanceAB Sweden 100% FalckAmbulansAB Sweden 95% FalckRäddningstjänstAB Sweden 100% FalckServicesAB Sweden 100% SvenskSjöambulansAB2) Sweden 50% FalckEnsihoitoOy Finland 100% SRegHoldingA/S Denmark 100% SRegAB Sweden 100% FalckSecureAB Sweden 100% SRegOy Finland 100% FalckSecureAS Norway 100% FalckHealthCareSwedenHoldingAB Sweden 100% FalckAMHealthCareAB Sweden 100% FalckUSA,Inc. USA 98% FCACorp. USA 87% CareAmbulanceService,Inc. USA 100%


Legal entities in the Falck Group asat31December(continued)


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FalckEMSCorp. USA 97% LifestarResponseCorporation,Inc. USA 100% AccessonTimeLanguageServicesLLC USA 100% LifestarResponseofAlabama,Inc. USA 100% Medibus,Inc. USA 100% STATEquipmentCorp. USA 100% STATEMS,LLC USA 51% Bi-CountyAmbulance&AmbuletteTransportServicesCorp. USA 100% LifestarResponseofNewJersey,Inc. USA 100% LifestarResponseofMaryland,Inc. USA 100% AccessTransportServicesHolding,Inc. USA 100% FalckGlobalAssistanceLLC USA 100% HomeCareEquipment,Inc. USA 100% Robinson’sAmbulance&OxygenService,Inc. USA 100% FalckSoutheastCorp. USA 96% CapeCodMedicaEnterprises,Inc USA 100% AmericanAmbulance,Inc. USA 100% FalckSoutheastIICorp. USA 96% TransitionalHealthSolutionsLLC USA 100% FalckNorthernCaliforniaCorp. USA 100% FalckNorthwestCorp. USA 100% FalckInvestmentsFinlandOyAb Finland 100% FalckOy Finland 100% FalckAutoabiOÜ Estland 100% FalckBeneluxNV Belgium 49% FalckInvestmentsNV Belgium 88% FalckMedicalServicesLLC UnitedArabEmirates 49% FalckEurasiaB.V. Netherlands 100% FalckRussiaHoldingB.V.2) Netherlands 49% BeijingFalckRescueConsultingServicesCo.,Ltd China 100% FalckKazakhstanLLP Kazakhstan 100% OpenClinicLLP Kazakhstan 80% FalckFireServicesRusLLC Rusland 100% FalckFoundationVZW Belgium 100% FalckMedycynaSp.zo.o. Poland 100% StarowkaSp.zo.o. Poland 76% FalckSKa.s. Slovakia 93% FalckEmergencyAS Slovakia 51% FalckZáchrannáa.s. Slovakia 100% FalckAcademys.r.o. Slovakia 100% FalckHealthcarea.s. Slovakia 100% FalckPharmas.r.o. Slovakia 100% FalckFireServicesa.s. Slovakia 100% FalckCZa.s. CzechRepublic 93% FalckEmergencya.s. CzechRepublic 100% FalckSCI,S.A. Spain 65% FalckSCIPortugal–SegurançaContraIncêndios,SA. Portugal 100% FalckEmergencySpain,S.L. Spain 65% FalckVLServiciosSanitarios,S.L. Spain 75% FalckServiziIndustrialidiEmergenzaS.r.l. Italy 65% FalckFranceSAS France 65% FinetaSAS France 42% AmbulancesdeLongjumeauSAS France 100% AmbulancesDépartementalesSudFranciliennesSAS France 100% AmbulancesSaintGillesSAS France 100% GroupeDépartementalAmbulanceSAS France 100% GroupeEssonneAmbulanceSAS France 100% GroupeFranceAmbulanceSAS France 100%



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FalckHoldingB.V. Netherlands 100% FalckB.V. Netherlands 100% FalckFireServicesNLB.V. Netherlands 100% FalckAVDB.V. Netherlands 100% AVD-ICTB.V. Netherlands 100% SafetyCenterZuidNetherlandsB.V. Netherlands 100% SafetyCenterZuidNetherlandsc.v. Netherlands 52% SafeBuildingB.V. Netherlands 100% FalckBHVB.V. Netherlands 100% AVDConsultancyN.V. Belgium 100% FalckBrasilAVDParticipaçõesLtda. Brazil 100% FalckBrasilPlanodeSaúdeLtda. Brazil 100% FalckBrasil747ParticipaçõesLtda. Brazil 100% FalckBrasilFFParticipaçõesLtda. Brazil 100% FalckPanamaHoldingS.A. Panama 100% EMIHoldingsManagementS.A. Panama 63% EMIForeignHoldings1S.A. Panama 100% EMIForeignHoldings2S.A. Panama 100% EMIForeignHoldings3S.A. Panama 100% EMIForeignHoldings4S.A. Panama 100% ServicioEmergenciasRegionalSERS.A. Panama 100% FalckFire&SafetydoBrasilS.A. Brazil 65% LuvtelS.A. Uruguay 100% BHMSolucionesIntegralesdeLogisticaenSaludS.A.S. Colombia 80% HacesInversionesyServiciosS.A.S Colombia 80% EmpresadeMedicinaIntegralEMIS.A.Serviciode AmbulanciaPrepagada-GrupoEMIS.A. Colombia 100% EMIElSalvadorS.A.deC.V. ElSalvador 100% InversionesEMIWorldwideS.A. Panama 100% EMIPanamaS.A. Panama 100% EMIEcuadorS.A.-EmergenciaMedicaIntegral Ecuador 100% UCMUruguayS.A. Uruguay 100% PortovenusS.A. Uruguay 16% EMIVenezuelaHoldingS.A. Panama 100% EmergenciaMedicaIntegralEMICentroS.A. Venezuela 100% CentroMedicoIntegralCEMICAS.A. Venezuela 100% FalckChileHoldingS.A. Chile 100% FalckChileS.A. Chile 80% FalckSafetyServicesLimitada Chile 100% FalckCapacitacionLimitada Chile 100%



Management review




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(1) Thecompanyisatpresentwithoutactivity(dormant)(2) Associated company


FalckRettungsdienstGmbH Germany 90% G.A.R.D.VerwaltungsgesellschaftfürAmbulanzundRettungsdienstmbH Germany 100% G.A.R.D.GesellschaftfürAmbulanzundRettungsdienstCuxhavenGmbH Germany 100% G.A.R.D.GesellschaftfürAmbulanzundRettungsdienstHamburgWestmbH Germany 100% GUARDHospitalServiceGmbH Germany 100% G.A.R.D.GesellschaftfürAmbulanzundRettungsdienstBremenmbH Germany 100% ASN-Ambulanz-Service-NordGmbH Germany 100% G.A.R.D.GesellschaftfürAmbulanzundRettungsdienstHamburg-OstGmbH Germany 100% G.A.R.D.ArbeitsgemeinschaftRettungsdienstDresdenGmbH Germany 100% G.A.R.D.ArGeDresdenGbR Germany 100% G.A.R.D.GemeinnützigeAmbulanzundRettungsdienstGmbH Germany 100% GUARDGesellschaftfürunabhängigeambulanteRettungsdienstleistungenGmbH Germany 100% G.A.R.D.GesellschaftfürAmbulanzundRettungsdienstNRWmbH Germany 100% K&GTaxi-KrankentransporteundDienstleitungsGmbH Germany 80% G.A.R.D.BeteiligungsgesellschaftfürAmbulanzundRettungsdienstmbH Germany 100% promedicaRettungsdienstGmbH Germany 100% RTDConsultingGmbH Germany 100% ASGAmbulanzLeipzigGmbH Germany 100% promedicaRettungsdienstBremehaven/BremenGmbH Germany 100% promedicaRettungsdienstWalbeck-FrankenbergGmbH&Co.KG Germany 70% Euro-MedEinkaufsgemeinschaftGmbH Germany 63% promedicaServicesGmbH Germany 100% G.A.R.D.AmbulanzflugdienstGmbH Germany 50% Brava Holding GmbH 2) Germany 25% Kranken-TransportHerzigGmbH Germany 100% KS-Medi-ServiceGmbH Germany 100% FalckÖsterreichGmbH Austria 100% FalckYardimHizmetleriLimitedŞirketi Turkey 100% FalckPtyLtd Australia 53% FalckAmbulanceServicesAustraliaPtyLtd Australia 100% FalckInvestmentsPtyLtd. Australia 100% FalckUKLimited UK 100% FalckEMSUKLimited UK 100% MedicalServicesLimited2) UK 45% FalckEmergencyServicesUKLtd. UK 93% FrontlineFireInternationalLimited UK 100% FalckFireServicesUKLimited UK 100% FalckEmergencyAsiaPte.Ltd. Singapore 100% FalckIndiaLimited UK 98% FalckServicesLimited Mauritius 100% FalckIndiaPvt.Ltd.(India) India 100% FalckCarePvt.Ltd. India 100% FalckServicesPvtLtd.(India) India 100% FalckFireServicesS.R.L Romania 93% FalckSouthAfricaHolding(PTY)LTD SouthAfrica 100% Med1(Private)Limited2) SriLanka 50% ACTrafikA/S Denmark 100% KPCEjendommeaf6.juni2002A/S2) Denmark 25%



Management review




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Designandgraphicproduction:MeyerBukdahl

Definitionsofratios

The ratios are basically calculated on the basis of the annual report and the Group’s accounting policies. The Falck Group cal-culatesanumberofratiosonthebasisofthefinancial-highlightfiguresin“Financialhighlightsandkeyratios”onpage2.Thedefinitionsofthoseratiosarestatedbelow.

Organic growthGrowthinexternalrevenueinlocalcurrencyrelativetotheprecedingyearadjustedfor:

• Acquisitions:Revenuerelatingtoacquiredentitiesorope-rations generated in the current year is not included. For entities or operations acquired in the preceding year, revenue generated in the current year is only included from the time whenrevenueisrecognisedinthecomparativeperiodforthepreceding year.

• Divestments:Revenuefromtheprecedingyearrelatingtoentities or operations divested in the preceding year is not included. For entities or operations divested in the current year, revenue from the preceding year is only recognised for the comparative period of the current year.

• Contracts:Materialcontractsenteredintobeforeorduringtheyearaftertheacquisitions,whereFalckhashadamaterialimpact on the contract in question, are recognised in revenue andconsideredorganicgrowth.Anymaterialisolatedope-rationswhichFalckterminatesorpublic-sectorcustomers’insourcingoftaskswithoutinvitationsfortenderarecon-sidered divestments.

• Redefinitionofsegments:Revenuerelatedtoentitiesthatareredefinedtoanothersegmentareaccountedforasacqui-sitions and divestments, as the case may be, in the respective business segments.

eBita margin Operatingprofitbeforecostsandamortisationfrombusinesscombinationsandexceptionalitems(EBITA)asapercentageofrevenue.

Effective tax rateTaxchargedinrespectofthefinancialyearasapercentageofprofitbeforetax.

Net capital investmentsInvestments in land and buildings, operating equipment and other intangible assets less land and buildings, operating equip-ment and intangible assets sold.

Equity ratioTotal equity at year-end as a percentage of equity and liabilities at year-end.

Return on equityProfitfortheyearattributabletoFalckasapercentageof average equity excluding non-controlling interests.

Net operating assetsNetoperatingassetsexcludinggoodwilldefinedastradereceivables and other current operating assets plus property, plantandequipmentandintangibleassets(excludinggood-will),lesstradepayables,otherpayablesandotheroperatingliabilities.

Net interest-bearing debt to EBITDANet interest-bearing debt and purchase consideration payable dividedbyEBITDA.EBITDAhasbeennormalisedforthefull-yeareffectofacquisitionsmadeduringtheperiod.

Free cash flowOperatingprofitbeforecostsandamortisationfrombusinesscombinationsandexceptionalitems(EBITA)adjustedfornon-cash operating items and change in net operating assets.

Cash conversion rateFreecashflowasapercentageofoperatingprofitbeforecostsand amortisation from business combinations and exceptional items(EBITA).Therateofoperatingprofitbeforecostsandamortisation from business combinations and exceptional items (EBITA)tothefreecashflow(cashconversionrate)showstheGroup’sabilitytogeneratecashflowsfromoperatingactivitiesafter investments in intangible assets and property, plant and equipmentandcashthatmustbetiedupinworkingcapitalinordertogenerategrowth.

Normalised profit after taxProfitfortheyearlesscostsandamortisationfrombusinesscombinations and exceptional items and tax thereon.


Management review




ContentdeFiniTionS oF rATioS

Falck Holding A/SPolititorvet1780 Copenhagen vDenmark

tel.: +45 70 33 33 11www.falck.comwww.falck.dkCvR no. 33 59 70 45




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