Key figures Foreword Highlights Business areas CSR Financial … · 2014. 4. 11. · Kazakhstan...

Management review 1Key figures and financial ratios 2The heritage of Sophus Falck 4Highlights of the year 6Business areas 8 Emergency 10 Assistance 16 Healthcare 20 Safety Services 24Corporate social responsibility 28Corporate governance 34Financial review 36Risk factors 42 Business risks 42 Financial risks 44 Consolidated financial statements 48 Income statement 49 Statement of comprehensive income 50 Cash flow statement 51 Balance sheet 52 Equity statement 54 Notes 55 Parent company financial statements 94 Income statement 95 Statement of comprehensive income 96 Cash flow statement 97 Balance sheet 98 Equity statement 100 Notes 101 Management’s statement 110Independent auditor’s report 111Board of Directors, Executive Management Board and auditors 112Company information 114Legal entities in the Falck Group 115Definitions of ratios 119

01

48

94Annual Report 2013

SpainEmergency627 employees

EstoniaAssistance20 employees

FinlandEmergencyAssistance125 employees

TurkeyEmergency3 employees

AzerbaijanSafety Services16 employees

ThailandSafety Services12 employees

VietnamSafety Services8 employees

ChinaAssistance3 employees

KazakhstanEmergency317 employees

AngolaEmergencySafety Services1 employee

SwitzerlandEmergency2 employees

ItalyEmergency2 employees

NigeriaSafety Services130 employees

FranceEmergency2 employees

QatarSafety Services2 employees

United ArabEmiratesSafety Services27 employees

IndiaEmergency134 employees

SingaporeSafety Services10 employees

MalaysiaSafety Services82 employees

SlovakiaEmergency2,379 employees

AustraliaEmergency110 employees

Papua New GuineaEmergency6 employees

PolandEmergency3,426 employees

RomaniaEmergency225 employees

Falck worldwide

Falck on 6 continents

United KingdomEmergencySafety Services138 employees

GermanyEmergencySafety Services1,609 employees

BelgiumEmergency405 employees

NetherlandsEmergencySafety Services294 employees

DenmarkEmergencyAssistanceHealthcareSafety Services10,912 employees

NorwayEmergencyAssistanceHealthcareSafety Services423 employees

SwedenEmergencyAssistanceHealthcare1,740 employees

BrazilEmergencySafety Services168 employees

ChileEmergency51 employees

UruguayEmergency1,113 employees

TrinidadSafety Services51 employees

VenezuelaEmergency415 employees

ColombiaEmergency1,739 employees

EcuadorEmergency120 employees

PanamaEmergency126 employees

El SalvadorEmergency89 employees

USAEmergencyAssistanceSafety Services4,905 employees

MexicoSafety Services7 employees

CanadaSafety Services24 employees

19In 19 countries, Falck teaches especially offshore staff to mind their own safety as well as the safety of their col-leagues.

Safety Services

159,000Falck’s healthcare staffing businesses provided 159,000 shift hours in 2013, up from 145,000 a year earlier.

Healthcare

1,800,000In the Nordic countries and Estonia, 1.8 million people subscribe to Falck assistance services, mainly for their vehicles and homes.

Assistance

2,200The fleet of ambulances operated by Falck grew to 2,200 vehicles in 2013.

Revenue by geographical area

Denmark, 46.6%

Nordic region, 16.4%

Europe, 13.3%

North America, 15.0%

Latin America, 6.7%

Rest of the world, 2.0%

Emergency

Revenue by business area

Emergency, 56.7%

Assistance, 24.0%

Healthcare, 9.5%

Safety Services, 9.8%

Management review | Falck Annual Report 2013 1


ManageMent review | Consolidated financial statements | Parent company financial statements | Statements | The company

Key figures | Foreword | Highlights | Business areas | CSR | Corporate governance | Financial review | Risk factorsManageMent review

Key figures and financial ratios

RevenueDKK million %

14,00012,00010,000

8,0006,0004,0002,000

0

2824201612

840

2009 2010 2011 2012 2013

Cash conversion rate and free cash flowDKK million %

1,200

1,000

800

600

400

200

0

180

150

120

90

60

30

0

2009 2010 2011 2012 2013

EBITDADKK million

1,500

1,250

1,000

750

500

250

0

Normalised profitDKK million

600

500

400

300

200

100

0

2009 2010 2011 2012 2013

EBITA and EBITA marginDKK million %

1,200

1,000

800

600

400

200

0

12

10

8

6

4

2

0

2009 2010 2011 2012 2013

2009 2010 2011 2012 2013

Operating assets and liabilitiesDKK million

3,600

3,000

2,400

1,800

1,200

600

0

2009 2010 2011 2012 2013

Revenue, EBITA, EBITA margin and organic growth by business area – Falck Holding A/S

Revenue EBITA EBITA margin (%) Organic growth(1)

DKK million % of total 2013 2012 2013 2012 2013 2012 2013 2012

Emergency 64.4 8,077 7,515 478 459 5.9 6.1 7.7 10,7Assistance 23.0 2,885 2,815 307 333 10.6 11.8 4.1 2,0Healthcare 9.6 1,206 1,012 112 94 9.3 9.3 13.6 1,4Safety Services 10.5 1,316 1,164 215 197 16.3 16.9 11.3 11,6Eliminations -7.5 -950 -1,002 group total 100.0 12,534 11,504 1,112 1,083 8.9 9.4 7.7 7,6

(1) Organic growth is calculated based on pro forma figures for 2011. The ratio is an expression of external revenue growth in local currencies adjusted for acquisitions and divestments, as described on page 119.

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

EBITDA, pro forma EBITDA, Falck Holding A/S

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

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

Operating assets, 2009 and 2010 are pro forma Operating liabilities, 2009 and 2010 are pro forma

2 Falck Annual Report 2013 | Group

Group | Falck Annual Report 2013 2


Key figures | Foreword | Highlights | Business areas | CSR | Corporate governance | Financial review | Risk factorsKey figures

The Group focuses on a number of key figures and ratios which are not all derived directly from the income statement, cash flow statement and balance sheet. Theese key figures and ratios are shown below. KEY FIGURES DKK million 2013 2012 2011*

INCOME STATEMENT

Profit before financials 562 508 229 Financials etc. -313 -312 -171

Profit before tax 249 196 58 Income taxes -44 -77 -43

Profit for the year 205 119 15 Amortisation of intangible assets and costs from business combinations 550 551 293 Exceptional items - 24 - Debt restructuring costs - - 15 Tax on normalisation items and changed tax rate -187 -135 -64

Normalised profit after tax 568 559 259

CASH FLOW STATEMENT

EBITA 1,112 1,083 522 Amortisation, depreciation and impairment 390 349 186

EBITDA 1,502 1,432 708 Change in working capital including operating provisions -15 6 94 Investments in intangible assets and property, plant and equipment -530 -529 -190 Sales of non-current assets 26 57 5

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

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

BALANCE SHEET

Current assets excluding cash and cash equivalent, etc. 2,000 1,792 1,590 Liabilities excluding credit institutions, income taxes, etc. -3,142 -3,042 -2,851 Operating provisions -77 -45 -54 Non-current assets excluding goodwill 2,105 1,950 1,746

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

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

Equity attributable to Falck Holding A/S 5,393 5,512 5,606 Non-controlling interests 62 77 74

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

Financing 13,097 12,842 12,472

KEY RATIOS

Cash flow from operating activities DKK million 865 820 395 Total assets DKK million 17,681 17,179 16,734 Equity ratio % 30.9 32.5 33.9 Return on equity % 3.6 1.9 0.3 Return on equity excl. exceptional items % 3.6 2.2 0.3 Net interest-bearing debt to EBITDA, normalised Factor 4.06 3.94 4.14 Number of employees Number 32,009 28,005 25,262

* Comparative figures for 2011 include the period 1 April til 31 December. In the Group, cash flows are divided into free cash flow, investments in acquisitions, dividends paid, repayments and change in interest-bearing debt. The free cash flow is net of investment in property, plant and equipment as the Group invests in vehicles, infrastructure and similar assets as part of ordinary operations. Thus, the free cash flow reflects the amount available for acquisitions and repayments on debt.




Key figures | Foreword | Highlights | Business areas | CSR | Corporate governance | Financial review | Risk factors

The heritage of Sophus Falck

On 3 October 1884, a young man named Sophus Falck passed by Christiansborg Palace in Copenhagen, Denmark, by chance, when the palace was on fire. He immediately joined the fire-fighting effort, but was deeply affected by the chaotic and unstructured relief work which contributed to the loss of irreplaceable valuables. Twenty-two years later, in 1906, Sophus Falck opened his rescue station in Copenhagen, ready to respond quickly to emergency situations and provide an organised response to save lives and property.

Now, more than 100 years later, this young man’s organisation, Falck, operates in most parts of the world. In 43 countries on six continents, more than 32,000 employees are a living manifesta-tion of Sophus Falck’s vision of providing relief and preventing and alleviating the effects of accidents and illness.

The spirit from 1906 was still alive in 2013, which was yet another year when Falck’s services were in great demand. In-numerable people worldwide were helped by the deeply com-mitted efforts of our employees, whether their situation was due to accidents, fires or mental trauma, back pain, or they were attending life-saving courses, or had car engine trouble.

Falck expanded into new geographies in 2013 while also growing in its current countries of operation. We now also provide emergency and medical services to mineworkers in Australia and safety services to offshore workers in both Mexico and Canada. We also acquired the largest private am-bulance company in Germany, and we won major contracts for ambulance services in a number of countries, including Denmark, Sweden and the United States.

In 2013, we started up a number of strategic projects de-signed to help us achieve our goal of doubling our size by 2020. We now offer industrial fire-fighting services in a num-ber of new countries, and we signed our first contracts for these services in Belgium, the Netherlands and Italy. We are currently building medical and healthcare clinics in Europe, Latin America and Asia. And in the field of Global Assistance, we are establishing centres worldwide from which we can as-

sist travellers and expatriates with their safety and security, as well as provide medical help.

The year 2013 was also a good year for Falck in terms of finan-cial performance. Our revenue grew by 9.0% to DKK 12,534 million, 7.7% of which was the result of organic growth.

The rise in revenue was mainly driven by ambulance services in the United States and Latin America, healthcare services in Denmark and Sweden, and safety courses for offshore work-ers worldwide.

The year’s operating profit was DKK 1,112 million, which was an increase of DKK 29 million. We expect this improvement in financial performance to continue in coming years.

Our expectation for the future and our obligations to carry the vision of Sophus Falck further out into the world can only be achieved if all of us at Falck exemplify the organisation’s values: accessible, competent, efficient, fast, helpful and reliable.

These values embrace the heritage of Sophus Falck, a heritage which generations before us have honoured, and which is the foundation for the future of Falck. It is our duty to grow and develop this heritage and pass it on to the people who will succeed us so that Falck can continue to provide assistance of the highest quality to people, businesses and authorities in the communities we serve. This we do every day year round, whether it is Falck staff rescuing lives, fighting fires, chang-ing car wheels, relieving neck pain, teaching people to take care of themselves and their colleagues, or otherwise helping make a growing number of our fellow human beings world-wide feel safe and secure. We would like to take this oppor-tunity to thank Falck employees, who so excellently embody our organisation’s values and who also in 2013 contributed so much to the development and expansion of Falck.

Lars Nørby Johansen Allan Søgaard LarsenChairman President and CEO


Key figures | foreword | Highlights | Business areas | CSR | Corporate governance | Financial review | Risk factorssophus falcK

June

opens a training centre in MexicoWith the opening of a training centre in Ciudad del Carmen in Mexico, Falck expanded its position as the world’s leading provider of rescue and safety courses. Together with Falck’s six training centres in the US Gulf of Mexico region, the new centre serves the oil and gas industry in the Gulf.

Highlights of the year

January

falck is again operating ambulances in finlandAfter a couple of years with no Falck ambulances in Finland, Falck is again responding to emergencies in the country after winning a contract for three ambulance stations east of Hel-sinki, the capital of Finland.

August

germany’s largest ambulance company becomes part of the falck groupThe door to the growing German market for ambulance services opened even more to Falck after the acquisition of G.A.R.D., Germany’s largest private ambulance company with its 1,000 employees and 340 vehicles.

April

falck wins ambulance contract in swedenFalck made a clean sweep of contracts for ambulance ser-vices in the region of Scania, Sweden. Falck submitted what were clearly the financially best bids for all three contracts tendered. However, a restriction in the call for tenders meant that a single service provider could only win two of the three contracts.

May

falck acquires californian ambulance companyFalck bought the company Verihealth, whose 100 employ-ees and 30 vehicles provide ambulance services in northern California, USA. Later in the year, Falck won a number of ad-ditional contracts in the United States, thereby anchoring its position as the country’s third-largest ambulance company.

6 Falck Annual Report 2013 | Management review



Key figures | Foreword | highlights | Business areas | CSR | Corporate governance | Financial review | Risk factorshighlights

September

continues to help airline passengers with reduced mobilityCopenhagen Airport renewed its contract with Falck to assist passengers with reduced mobility at the airport following a call for tenders for the contract. Under the new contract, even better services will be provided to the 100,000 passen-gers each year who need a helping hand getting to and from their flight.

Buys staffing company Skandinavisk HälsovårdFalck expanded its network of physicians, nurses, and social and healthcare assistants, reinforcing its position as an in-tegral player in the healthcare systems of the Scandinavian countries, when it acquired Skandinavisk Hälsovård, which provides healthcare staffing in Scandinavia.

October

responding in australiaAfter acquiring a majority interest in Australian-based Hostile Environment Services, Falck will now be providing ambulance and fire-fighting services and medical clinics for mines and other facilities in remote areas of Australia and Papua New Guinea – and in the longer term also in the rest of the world.

November

falck sets up in canadaFalck gains a foothold in Canada by acquiring most of Survival Systems Integrated Services. The company provides safety and rescue courses for the offshore industry from its base in Halifax, Nova Scotia.

December

wins ambulance contract in a danish regionFalck wins the contracts for all the services it submitted bids for in the Central Denmark region. This means that Falck continues to provide assistance to sick and injured people in the region, in future with 68 ambulances, 34 vehicles for patient transporta-tion and eight medical response vehicles.

wins ambulance contract in region ZealandFalck signs a contract with Region Zealand in Denmark to pro-vide ambulance services in the municipalities of Roskilde and Lejre starting on 1 February 2014. The contract runs for two years.

Signs first contract in ItalyFalck signs a contract with ExxonMobil’s refinery Sarpom near Milan, Italy, to provide fire and rescue services. This is Falck’s first contract in Italy.




Key figures | Foreword | highlights | Business areas | CSR | Corporate governance | Financial review | Risk factors

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 and provide help to subscribers, especially with their cars and homes. 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 homeowners with everything from water in the base-ment to snow on the roof.

EmergencyFalck is the largest international ambulance service provider in the world. Falck provides ambulance services to people in 25 countries worldwide in close collaboration with the authorities. Falck operates 2,200 ambulances with ambu-lance officers, nurses and doctors 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 activities in Europe, Latin America and Asia.

HealthcareFalck is Denmark’s largest private provider of healthcare services, and also helps companies and organisations in Nor-way and Sweden 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 ensure 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 for the offshore industry, providing courses and ser-vices in 19 countries on five continents. Training is provided at 31 centres aimed at the offshore industry and the mari-time sector, but the wind energy, chemical and aviation in-dustries also make use of Falck’s facilities and services. At all these training centres, people are instructed in safe behav-iour to help avoid accidents in the workplace, and they are taught how to react correctly – also under extreme condi-tions – if accidents do occur. Moreover, Falck has seven train-ing centres in the Netherlands, at which course attendees are instructed and trained in preventing and fighting fires.


Key figures | Foreword | Highlights | Business areas | CSR | Corporate governance | Financial review | Risk factorsBusiness areas

Emergency | Assistance | Healthcare | Safety Services

Business areas and their performance



Emergency | Assistance | Healthcare | Safety Services

FAlCK PRovIDES FIRE-FIGHTING AND FIRE-PREvENTING SERvICES To INDUSTRIAl CUSTomERS IN EURoPE, ASIA AND lATIN AmERICA, AND PEoPlE IN 30 CoUNTRIES woRlDwIDE CAN CAll A FAlCK AmBUlANCE, mEDICAl STAFF oR HEAlTHCARE woRKERS IF THEY ARE Ill oR INjURED.

Fast help is the difference between life and death

eMergency

18Falck is the world´s largest international fire-fighting operator, with activities in 18 countries. Falck both operates industrial fire services and provides fire-fighting services to two-thirds of Denmark’s municipalities.


Key figures | Foreword | Highlights | Business areas | CSR | Corporate governance | Financial review | Risk factorseMergency

eMergency | Assistance | Healthcare | Safety Services

alfonso Madrid lopez, 53, senior instructor,

trains fire fighting at Falck’s fire-training centre on gran Canaria in the Atlantic.




Emergency

• won market share in the United States

• opened more medical clinics in India

• Established activities in Australia

• Acquired G.A.R.D, the largest private ambulance company in Germany

falcK is the world’s largest INTERNATIONAL AMBuLANCE OpERATOR AND ALSO THE LARgEST FIRE SERvICES pROvIDER. MOREOvER, FALCk OpERATES MEDICAL AND HEALTHCARE CLINICS IN A gROWINg NuMBER OF COuNTRIES WORLDWIDE

Falck’s 13,667 rescue officers, nurses and doctors provide as-sistance and care for sick and injured people in 30 countries on five continents. Besides its fleet of 2,200 ambulances, Falck also uses medical response vehicles, emergency re-sponse vehicles and patient transportation vehicles to provide services. In several countries Falck’s healthcare staff also make home calls to attend to patients or treat them at Falck’s medical or healthcare clinics.

In the field of fire services, Falck provides fire-fighting, fire training and consultancy services to industrial customers in Europe, Asia and Latin America. The competencies of Falck’s firefighters are based on Falck’s 100 years of fighting and pre-venting fires in Denmark, where Falck provides these services to two-thirds of Denmark’s municipalities.

In 2013, Falck expanded its leading global position in the mar-ket for emergency services. In 2013, Emergency generated DKK 8,077 million in revenue, an increase of 7.5% compared to 2012. The rate of organic growth was 7.7%, which was mainly attributable to growth in the United States and Latin America.

Falck’s market share in the united States grew as a result of a number of new contracts for ambulance services and patient transportation, primarily in Florida, California, Washington state, and the north-east of the United States. Falck also ac-quired a small ambulance company in northern California with

7.5%Revenue from the Emergency business rose by 7.5% from DKK 7,515 million to DKK 8,077 million.

Dkk million 2013 2012

emergency Revenue 8,077 7,515 Revenue growth 7.5% 14.7%Organic growth 7.7% 10.7%EBITA 478 459 EBITA margin 5.9% 6.1%






a fleet of 30 vehicles and 100 employees. This strengthened Falck’s position as the third-largest ambulance company in the United States.

In Latin America, Falck offers subscription-based ambulance, medical and healthcare services. New subscriptions were sold in the course of 2013 in Colombia, Uruguay, Venezuela, Ecua-dor, Panama and El Salvador, and the total number of people in these countries receiving help from Falck when they are ill or injured is now 912,000.

In Asia, Falck expanded in India and now operates 19 medi-cal clinics in remote-location workplaces with special risks,

for example mining companies, building and construction companies, and oil and gas companies that want to offer their employees quick treatment if they are ill or injured.

In Kazakhstan, Falck operates five medical clinics with a total of 300 employees providing medical check-ups, health tests, vaccinations, physiotherapy and dentist services. Four ambu-lances are attached to the clinics, ready to respond to emer-gencies and for home visits to patients.

Falck established a presence in Australia in 2013 by acquir-ing a majority interest in HES (Hostile Environment Services), which provides ambulance services, fire fighting, medical

RevenueDKK million

09 10 11 12 13 09 10 11 12 13 09 10 11 12 13

organic growth%

12

10

8

6

4

2

0

Falck ambulances

2,400

2,000

1,600

1,200

800

400

0

9,000

7,500

6,000

4,500

3,000

1,500

0

13,500Falck’s more than 13,500 rescue officers, nurses and physicians help people who are ill or injured in 30 countries on five continents.






order to provide the best possible assistance to people in the pre-hospital systems of the regions. As a result of these efforts, paramedics are increasingly used in ambulances, and Falck’s paramedics can now also take blood samples, for ex-ample.

Fire-fighting contracts were renewed with a number of mu-nicipalities in Denmark, both in public procurement processes and by negotiation, with Falck continuing to handle fire-fight-ing services for two-thirds of Danish municipalities. The num-ber of emergency responses was 14,147, up from 13,408 in 2012, and Falck’s firefighters improved their response times once again in 2013.

Falck successfully won a contract to operate the Danish Road Directorate Traffic Information Centre, which provides a general overview of traffic on Danish roads round the clock, ensuring that traffic flows as smoothly as possible.

In addition, Falck won a new three-year term for its existing contract with Copenhagen Airport to assist people with re-duced mobility at the airport.

Falck’s activities in the rest of Europe were characterised by both a number of contracts won and several acquisitions.

Falck won new ambulance contracts in Sweden, Germany and Slovakia in public procurement processes. In addition, Falck set up a new patient transportation business in Slovakia.

clinics and safety training to the mining, oil and gas industries in remote areas of Australia and Papua New Guinea, where a new contract was won towards the end of the year. The company has 110 employees, operates 60 ambulances and fire-fighting vehicles, and a number of mobile medical clinics that can be airlifted by helicopter. Falck runs a similar business in Chile; the goal is also to offer this kind of services in other areas of the world with extensive mining operations.

In Denmark, Falck covers 85% of the population with its am-bulance services. In public procurement processes in 2013, Falck successfully won its previously held pre-hospital con-tracts – for ambulance services, patient transportation and medical response vehicles – in one of the five Danish regions: the Danish Central Region. Falck also won contracts for pre-hospital services in a number of other public procurement processes during the year. Denmark’s other four regions are expected to tender contracts for pre-hospital services over the next two years.

In 2013 Falck continued its collaboration with the Danish regions to develop the competencies of the ambulance staff that already have the highest training level – paramedics – in

IN DENMARK, FALCK COvERS 85% OF THE pOpuLATION WITH ITS AMBuLANCE SERvICES

Falck operates 2,200 ambulances and provides services using a number of other means of conveyance

2,200






FALCK RENEwED ITS TwO FIRE-FIgHTINg CONTRACTS IN ROMANIA AND ITS LARgEST CONTRACT IN SpAIN

In 2013, Falck set up a new unit for all its international competencies in industrial fire fighting and fire prevention. The new unit obtained fire contracts in three coun-tries – the Netherlands, Belgium and Italy.

3

G.A.R.D., Germany’s largest ambulance company with about 1,000 employees and 340 vehicles, joined the Falck Group in 2013. And in the UK, Falck acquired a 45% interest in Medical Services, the country’s largest private ambulance company.

In 2013, Falck organised its international competencies in industrial fire fighting and fire prevention in a new unit which began marketing its services in Europe and Latin America. Falck signed large contracts for industrial fire-fighting services in the Netherlands, Belgium and Italy and renewed two exist-ing fire-fighting contracts in Romania and its largest contract in Spain.

Operating profit for the Emergency business was DKK 478 million in 2013, up 4.1% from DKK 459 million in 2012. This profit performance was affected by substantial costs incurred in establishing the new platform for industrial fire fighting and in expanding the ambulance services in the United States to a number of new areas.

14,147In Denmark, Falck responded to 14,147 fire incidents in 2013.

Management review | Falck Annual Report 2013 15ManageMent review | Consolidated financial statements | Parent company financial statements | Statements | The company



60Falck’s red auto assistance vehicles respond to calls for help in the Nordic region and Estonia. In 2013, Falck de-ployed 60 new road service vehicles on Danish roads.

assistance

Falck is people who help peopleFAlCK’S EmPloYEES RESPoND To REqUESTS FoR ASSISTANCE wITH CAR BREAKDowNS oR ACCIDENTS, HomEowNERS SUFFERING SToRm DAmAGE AND PEoPlE SUFFERING ACCIDENTS oR IllNESS wHEN TRAvEllING ABRoAD.


Key figures | Foreword | Highlights | Business areas | CSR | Corporate governance | Financial review | Risk factorsassistance

Emergency | assistance | Healthcare | Safety Services

andrei Bernoulli, 42, assistance officer,

helps a car owner outside Helsinki, Finland. Falck has been providing as-sistance services to Finnish car owners since 2005.




Assistance

• Deployed 60 new road service vehicles on Danish roads

• Again offers damage control to homeowners in distress

• Signed a number of new contracts with Nordic insurance companies

• Provided assistance to 16% more travellers

was adversely affected by a decline in intra-group revenue and by exchange rate movements, thus the rate of organic growth was 4.1%, a rise mainly related to assistance provided to travellers and an increase in the number of alarm subscrip-tions.

In Denmark, subscribers benefited from Falck’s new road ser-vice concept. These services are provided by specially trained rescue officers and, currently, 60 road service vehicles with special equipment to repair cars on the spot so that driver and passengers can resume their journey quickly and safely while also saving the cost of a repair-shop visit.

Falck is again providing damage control services, one of the main areas in focus when Sophus Falck set up the company in 1906. The now-modernised concept was successfully tested when two hurricane-force storms hit Denmark at the end of the year, toppling trees and causing severe damage to buildings throughout the country. Falck staff responded to requests for assistance with chainsaws, dehumidifiers and tarpaulins, responding to a total of 7,000 calls for assistance during and after the two storms.

In 2013, Falck celebrated the 50th anniversary of its collabora-tion with Danish insurance company Lærerstandens Brand-forsikring. Falck has also signed a partnership agreement with another Danish insurance company, Tryg, whose customers now also receive Falck’s healthcare services.

In Sweden, Falck signed agreements for roadside assistance with two insurance companies, IF and Vardia, and a contract with Finnish insurance company Fennia was renewed.

falcK is the leading assistance services provider IN THE NORDIC REgION, pROvIDINg CuSTOMERS WITH pEACE OF MIND THROugH ADvICE, pREvENTION AND HELp

Services provided by the Assistance business are intended to give subscribers the greatest possible degree of security and peace of mind by providing advice, prevention, or fast and competent assistance when accidents happen. The services are aimed at consumers as well as business and public-sector customers.

Falck’s Assistance business is concentrated in Denmark, Esto-nia, Finland, Norway and Sweden. The primary focus of the services provided in these countries is on assisting custom-ers with their vehicles and homes. For example, Falck helps people get their car started again if it breaks down and assists homeowners with everything from water in the basement to snow on the roof. Consumers, companies and public authori-ties can also avail themselves of Falck’s services in situations involving buildings, health and travel.

At year-end, 1.8 million people and 0.1 million companies and public institutions had a subscription with Falck.

Revenue from the Assistance business was DKK 2,885 million, in 2013, up 2.5% from DKK 2,815 million in 2012. Growth that


assistance Revenue 2,885 2,815Revenue growth 2.5% 4.5%Organic growth 4.1% 2.0%EBITA 307 333EBITA margin 10.6% 11.8%






RevenueDKK million

3,000

2,500

2,000

1,500

1,000

500

0

organic growth%

10

8

6

4

2

0

Subscribers

2,000,000

1,500,000

1,000,000

500,000

0

The year 2013 was also good in terms of sales of Falck Alarm in Denmark and Norway, a product that not only protects against burglary, but also in the event of situations such as flooded basements, fire or gas leaks. In Denmark, the alarm product was bundled with Falck’s BoligRedning home as-sistance product, with a view to providing homeowners with greater peace of mind.

Falck Global Assistance offers businesses and organisations in the Nordic region assistance for employees travelling on business as well as for their staff stationed abroad. Global As-sistance services are also offered through insurance compa-nies, and they include assessment of health and security risks, round-the-clock monitoring during hospitalisation, evacuation and repatriation services.

Global Assistance set up emergency response centres in China and the United States in 2013 and helped 16% more custom-ers than in 2012, which contributed to a substantial increase in revenue. Among the services provided by Global Assistance in 2013 was assistance evacuating citizens from the Nordic region from the unrest in South Sudan and the Central African Republic.

EBITA from the Assistance business was DKK 307 million in 2013 compared to DKK 333 million in 2012. Earnings in 2013 were adversely affected by sales costs in connection with the expansion of the alarm portfolio in Denmark, Norway and Sweden and costs of expanding Falck Global Assistance. Moreover, costs related to roadside assistance were higher than anticipated in Finland, Norway and Sweden.

16%In 2013, Falck provided assistance to 16% more travellers than in 2012. Among the services provided was assistance evacuating Nordic-country citizens from the unrest in South Sudan and the Central African Republic.

09 10 11 12 13 09 10 11 12 13 09 10 11 12 13






healthcare

19%Falck’s revenue from the Healthcare busi-ness in 2013 was up 19% year on year. Much of the rise was due to a higher number of people in Denmark now being covered by healthcare plans, along with an increase in partnerships with Scandinavian insurance companies.

health creates well-being in people’s daily livesIllNESS, STRESS, STRAIN AND INjURY CAN BE PREvENTED, ENSURING THAT EACH PERSoN ENjoYS THE BEST PoSSIBlE wEll-BEING, AND EmPloYERS SAvE oN CoSTS RElATED To SICKNESS ABSENCE.


Key figures | Foreword | Highlights | Business areas | CSR | Corporate governance | Financial review | Risk factorshealthcare

Emergency | Assistance | healthcare | Safety Services

dr. Mette Møller Jørgensen, 40,

examines a young boy at a Falck healthcare clinic in Copenhagen, Denmark.




Healthcare

• more people registered under healthcare plans

• Signed a number of new contracts to provide healthcare services

• Started operating community health centres in Denmark

• Acquired Sweden’s leading healthcare temporary staffing business

falcK is denMarK’s largest private provider OF HEALTHCARE SERvICES, HELpINg COMpANIES AND ORgANISATIONS IN DENMARk, NORWAy AND SWEDEN kEEp THEIR EMpLOyEES AND CITIzENS HEALTHy AND ABLE TO FuNCTION

In the Healthcare business, Falck especially focuses on psycho-logical counselling; efforts to reduce sickness absence; physi-cal treatments such as physiotherapy, chiropractic treatment; and health checks. Falck provides interdisciplinary services in these four areas in Scandinavia, tailoring healthcare plans that match the needs of each company, municipality, or insurance or pension provider.

Falck’s healthcare activities focus on preventing illness, stress and strain to ensure that each individual enjoys the greatest possible degree of well-being at work and at home. In this way, Falck also helps employers reduce costs related to sick-ness absence. Moreover, the public sector saves on social security costs, and insurance and pension providers see lower payment of compensation related to occupational injuries and incapacity for work.

The Healthcare business generated DKK 1,206 million in rev-enue in 2013: a year-on-year increase of 19% driven by a rise in the number of people signed up for the Danish healthcare plans, which now cover more than 250,000 pension savers. Additional partnerships with insurance companies also contributed to Falck’s expansion in Denmark, Norway and Sweden.

Large contracts for healthcare services were entered into with, among others, the City of Copenhagen in Denmark and insurance companies Trygg-Hansa in Sweden and Tryg in both Denmark and Norway.

In Denmark, Falck expanded its healthcare network, which now includes 1,300 treatment providers and counsellors throughout the country. A total of more than two million peo-ple in Denmark are covered by Falck healthcare services.

Coverage also increased in Sweden, where 1.6 million people can now draw upon Falck healthcare services. Falck operates

13.6%The rate of organic growth for the Healthcare business was 13.6% compared with 1.4% last year.


healthcare Revenue 1,206 1,012Revenue growth 19.2% 7.2%Organic growth 13.6% 1.4%EBITA 112 94EBITA margin 9.3% 9.3%






RevenueDKK million

1,500

1,250

1,000

750

500

250

0

organic growth%

20

10

0

-10

-20

Number of healthcare professionals

5,000

4,000

3,000

2,000

1,000

0

clinics in the three biggest cities in Sweden – Stockholm, Gothenburg and Malmo – and has a nationwide network of independent physiotherapists, chiropractors and massage therapists as well.

Falck Healthcare also operates healthcare staffing services. In 2013, Falck acquired one of the leading Swedish providers of physician and nurse temps, Skandinavisk Hälsovård, and now operates the largest group of healthcare staffing businesses in Scandinavia, an accomplishment in line with Falck’s goal of becoming the leading provider of healthcare services in Scan-dinavia. The rate of organic growth in the Healthcare staffing business was 16% in 2013, despite a drop in the demand for physicians in Norway. Falck’s staffing businesses provided a total of 1,329,000 shift hours, up from 1,148,000 in 2012.

In 2013, Falck signed an agreement with the Northern Jutland Region in Denmark to operate two community health centres: one each at Hurup and Thisted. The municipalities of Taarnby and Dragør entered into a partnership with Falck to help people on sick leave get back to work faster, a Falck concept which – according to a 2013 research report from the SFI (The Danish National Centre for Social Research) – had a significant effect on reducing sickness absence.

The rise in revenue was reflected in EBITA, which grew from DKK 94 million in 2012 to DKK 112 million in 2013. The in-crease was mainly generated by a rise in activity within health-care plans and staffing services.

2,000,000Falck’s healthcare network in Denmark consists of 1,000 treatment providers and counsellors. More than two million people in Denmark are covered by Falck health-care services.

09 10 11 12 13 09 10 11 12 13 09 10 11 12 13






oFFSHoRE STAFF ARE oN THEIR owN IF AN ACCIDENT oCCURS AT SEA, So THEY mUST BE TRAINED To HElP THEmSElvES AND THEIR CollEAGUES IF NEED BE

safety comes first

31Falck is the world’s leading provider of rescue and safety training, especially for the offshore industry. Training takes place at 31 centres worldwide.




Safety Services

• Trained more than 329.000 course attendees in safety, rescue and fire fighting, a year-on-year increase of 28%

• opened a training centre in mexico

• Purchased a training centre in Canada

• Established a presence in Angola and qatar

sector, but the chemical industry, the wind energy industry, the aviation industry, and the Danish and Swedish armed forces also make use of these services.

In the Netherlands, Falck also operates seven training centres at which attendees are instructed and trained in preventing and fighting fires. These centres are used not least by firemen to maintain and build on their skills.

The year 2013 was a good one for the Safety Services busi-ness. Revenue was up by 13.1% – of which 11.3% was organic growth – to a total of DKK 1,316 million. Growth was success-fully generated in a large number of countries, with particu-larly strong growth in Malaysia, the United States and the United Kingdom.

In the offshore sector, Falck trained a total of 300,500 peo-ple, up from 225,500 in 2012. Contracts were signed with a number of global oil and gas companies to train their staff, and Falck signed its first contract with an international wind energy company.

Falck expanded its position as the world’s leading provider of rescue and safety courses in 2013. In Ciudad del Carmen in Mexico, Falck opened a training centre which, together with Falck’s six training centres in the US Gulf of Mexico region, provides services to the oil and gas industry in the Gulf. In ad-dition, Falck acquired a 55% interest in Survival Systems Inte-grated Services, a Canadian-based provider of training courses based in Halifax, Nova Scotia, one of Canada’s centres for oil

falcK is the world’s leading provider of rescue and safety training FOR THE OFFSHORE INDuSTRy. OuR COMpETENCIES IN THIS BuSINESS AREA ARE BASED ON MORE THAN 100 yEARS OF ExPERIENCE IN pROvIDINg RESCuE, ASSISTANCE, SAFETy AND SECuRITy SERvICES

Falck provides rescue and safety courses and safety services in 19 countries on five continents, all from 31 training cen-tres located close to the areas of the world where there is offshore oil and gas exploration and extraction under the seabed.

At these centres, course attendees are instructed in safe behaviour aimed at avoiding accidents in the workplace, and they are taught how to respond appropriately – also under extreme conditions – if accidents do occur. The courses are aimed at employees in the offshore industry and the maritime


Safety Services Revenue 1,316 1,164Revenue growth 13.1% 23.5%Organic growth 11.3% 11.6%EBITA 215 197EBITA margin 16.3% 16.9%

13.1%Revenue from the Safety Services business rose by 13.1% from DKK 1,164 million to DKK 1,316 million.






RevenueDKK million

organic growth%

12

10

8

6

4

2

0

-2

350,000

300,000

250,000

200,000

150,000

100,000

50,000

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Number of course participants

exploration. Finally, Safety Services established representa-tions in Angola and Qatar.

Falck also provides rescue and safety services for the wind energy industry. Strong growth was generated in that area at the training centres in Germany, the United Kingdom and Denmark. Falck established additional facilities tailored to employees from this industry in the Netherlands and began building an additional training centre in Belgium.

Other services provided by the Safety Services business include courses in handling major crisis situations – Major Emergency Management Initial Response (MEMIR) – in order to mitigate the risk of loss of life and property. The courses

are scenario-based and tailored to each customer’s special op-erational surroundings. The range of this type of services was expanded to include new and more complex courses in 2013.

At Falck’s fire training centres in the Netherlands, 28,500 course participants completed training courses in advanced fire prevention and fire fighting using the latest technology.

This brought the total number of people trained at all 38 Falck training centres to 329,000, a 28% increase from 257,000 participants in 2012.

The growth in revenue was reflected in an increase in EBITA by 9.1%, from DKK 197 million to DKK 215 million.

300,500In the offshore industry, Falck trained a total of 300,500 people in 2013, up from 225,500 in 2012. Falck also generated strong growth in training and safety courses for the wind energy industry at its training centres in Denmark, the united kingdom and germany.

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Report on corporate social responsibility

Corporate social responsibility (CSR) at Falck is defined as business practices that improve Falck as a workplace and ben-efit society beyond what the company is formally required to do under the laws and regulations applicable in the geogra-phies where we operate.

CSR is at the heart of Falck’s business, and both social and environmental considerations are deeply rooted in and in-tegrated into Falck’s business models and operations in its day-to-day interaction with local communities, business part-ners, customers and other stakeholders in an endeavour to promote health, safety and a general improvement in social standards in the communities we provide services to.

Falck’s mission is to actively prevent accidents, disease and emergency situations, to rescue and assist people in emer-gencies quickly and competently and to rehabilitate people after illness and injury.

Thus, Falck’s business model is itself an expression of system-atised social corporate responsibility.

For example, Falck acquired Australian-based HES in 2013, a company that offers its customers assistance in improving health and safety in the mining industry. These activities are based, among others, on a number of international certifica-tions that have been incorporated into the company’s man-agement and reporting systems. Falck plans to collaborate with HES to further develop these competencies and offer them to customers in countries with high levels of mining ac-tivity and lower safety levels than Australia has.

But assuming social responsibility is also to do what is not re-quired or expected: to do the right thing because the organi-sation has the ability and opportunity to do so.

The Falck Code of Conduct

As a minimum, Falck requires all its business entities to comply with applicable legal requirements in their countries of operation and with the Group’s Code of Conduct.The Falck Code of Conduct is based on the United Nations Global Compact, which deals with the following areas:

human rights

the company should• support and respect the protection of internationally

proclaimed human rights within the area in which it operates and has influence

• make sure that it is not complicit in human rights abuses

labour standards

the company should• uphold the freedom of association and effective

recognition of the right to collective bargaining• support the elimination of all forms of forced and

compulsory labour• support the effective abolition of child labour• support the elimination of discrimination in respect

of employment and occupation

Environment

the company should• support a precautionary approach to environmental

challenges• take steps to promote greater environmental

responsibility• encourage the development and diffusion of

environmentally friendly technologies

anti-corruption

the company should• work to counter all forms of corruption,

including extortion and bribery

These practices apply across all Falck business areas.




Key figures | Foreword | Highlights | Business areas | csr | Corporate governance | Financial review | Risk factorscsr

• Employment conditions: Falck’s contribution to ensuring long-term relationships with its employees

• Occupational health and safety: Falck’s contribution to en-suring a good physical and mental working environment

• Environment: Falck’s contribution to a sustainable environ-ment

• Business ethics: Falck’s insistence on zero tolerance towards child labour, exploitation, corruption and bribery

• Society: Falck’s contribution to the development of health and well-being in the societies of which we are a part

In 2013, we continued to work with integrated and commit-ted social responsibility in the Group’s business activities and strategy, also by continuing to work on anchoring the CSR policies in the Group and focusing on operationalising these CSR policies even further in 2014.

It is important to Falck that its corporate values – accessible, competent, efficient, fast, helpful and reliable – take root in all its countries of operation.

Employment conditions

As a service provider, Falck is aware that a good customer ex-perience is provided by competent and dedicated employees, be they in an ambulance, at a clinic or a training centre, or providing assistance with a customer’s car or home.

For this reason, we are also very much aware that having competent and enthusiastic employees is one of the keys to success. We hold a fundamental belief that responsibility for good service should be as decentralised as possible because

our employees have the ability and desire to make the right choices in their personal interaction with customers.

One of the goals of Falck’s policy for employee relations is to create a long-term relationship between each employee and the company.

The goals for Falck’s initiatives in this field are

• to reduce the rate of staff turnover• to reduce both long-term and short-term sickness absence• to increase employee satisfaction• to improve leadership quality

With this as a starting point, we implemented a number of specific measures in 2013 which will improve and expand employee competencies and job satisfaction in an ongoing process.

As an example, we continued to roll out the Falck Debriefing programme in 2013 with a view to preventing injuries and reducing sickness absence. Falck Debriefing is a programme that reinforces the ability of our employees to handle men-tally traumatic events on the job. Based on experience from Scandinavia, the programme was rolled out in Poland, Slova-kia, Sweden and the United States in 2013. The programme includes training of rescue staff in supporting colleagues who have been involved in traumatic events, debriefing by quali-fied debriefers and psychological counselling, if required, as well as the establishment of a local organisation to handle major incidents. In 2013, 214 specially selected rescue officers were trained as debriefers.

code of conduct

EnvironmentEmployment

conditionsSociety in generalBusiness ethics

Occupational health and safety

Falck has defined a number of policies within the areas below which are material to Falck´s corporate social responsibility and business. Compliance with the Falck Group’s Code og Conduct has - in addition to the specific policy - been implemented as an integral part of these supplementary policies:




Key figures | Foreword | Highlights | Business areas | csr | Corporate governance | Financial review | Risk factors

In 2013, Falck’s staff grew by 4,000 employees to reach its current headcount of 32,000 worldwide.

The average rate of sickness absence in 2013 was 3.6%, and the rate of staff turnover was 78%. The staff retention rate is affected by different labour market conditions in the countries of operation. The retention rate is for example high among Falck’s operating staff in Europe.

Occupational health and safety

Falck’s policy for occupational safety is to reduce physical and mental injury through good management of occupational health and safety and through a transparent allocation of du-ties and responsibility while ensuring an appropriate provision of training and information.

Falck believes that a good working environment – one which does not expose staff to a risk of injury – is a prerequisite for attracting and retaining good and competent employees.

Falck has rolled out additional measures to protect employ-ees against potential carcinogens when fighting fires: issuing specific instructions for working in smoke environments and introducing the concept of ‘working hygiene’, which includes reminding staff to use personal protection equipment and im-plementing new initiatives related to handling contaminated equipment.

Many Falck employees work on ambulances and in other patient transportation services, all of which involve frequent heavy lifting. Falck seeks to prevent back injuries and other lifting-related problems through physical training and instruc-tion in transfer techniques, including e-learning programmes, a management focus on the topic, and the use of assistive de-vices. In the Danish Emergency business, these measures have reduced the number of work-related injuries by 25.2% since 2010. Experience from this preventive work is currently being exchanged with other Falck countries of operation.

Falck Safety Services provides courses and training in occupa-tional health and safety. In this field, there is also a close cor-relation between the experience Falck gains as a sustainable business and the knowledge and experience that is passed on by the organisation to our business partners in both the pri-vate and public sectors.

Another area relating to occupational health and safety is the counselling and training Falck can provide to employees who travel for business or are transferred to high-risk areas. These services are provided by Falck Global Assistance, who special-ise in areas such as travel safety and security and health issues.


• to reduce the number of work related accidents and inci-dents

• to reduce the number of injuries in connection with Falck’s activities

• to be the safest and most reliable provider of these services• to involve the employees in maintaining high safety and

working environment standards

Falck’s rate of injuries resulting in absence was 15.7 per mil-lion working hours in 2013 (2012: 17.9) across the entire Group.

Environment

Falck is focusing intensively on initiatives that benefit both oc-cupational health and safety and the environment in general.

Falck’s activities are located at many different sites world-wide, such as stations, training centres and vehicles. As a result, Falck is obligated to operate in an environmentally responsible manner – and reduce the harmful effects its activities may have on the environment and the community in general. Environmental responsibility and sustainable conduct are thus part of the job for Falck’s managers.


• to reduce power, water and heating consumption• to reduce fuel consumption as well as air pollution and

wastewater discharge• to use environmentally friendly technologies, work pro-

cesses, substances and materials in connection with new purchases and when restructuring existing work processes

• to aim for a high rate of recycling and the lowest possible environmental impact in connection with waste handling

Falck Safety Services training centres were refurbished in 2013 to increase their reuse of water by collecting it and recir-culating it after purification.





Likewise, heat consumption has been cut in countries where Falck stations have to be heated during the winter months. Based on an analysis of the impact of temperature on the operational reliability of Falck’s vehicles, temperature levels have been lowered in garage facilities, a measure that has so far reduced CO2 emissions by the equivalent of approximately 5,000 tonnes per year.

Falck continuously seeks to reduce fuel consumption for the operation of its fleet, also by rolling out a large-scale eco-drive project in its ambulance business in 2013. This project will analyse each driver’s pattern of driving in order to enable a systematic follow-up with training in environmentally friend-ly driving techniques. It is expected that this targeted follow-up will make it possible to reduce fuel consumption.

The results of the measures implemented to reduce the climate impact are, thus, reflected directly in measurable pa-rameters related to day-to-day operations.

In the Emergency division, Falck operated a total of 173 million kilometres with an average fuel consumption of ap-proximately 6 kilometres per litre. It should be noted that emergency responses have an adverse impact on the average fuel economy, and that the consolidated figure is affected by substantial regional differences in requirement to the size of emergency response vehicles and the weight in the Group of each country of operation.

Falck also strives to reuse more in connection with its waste management procedures, also by making an effort to opti-mise and simplify its collaboration with the suppliers involved.

The objective here is, among other things, to reduce the number of suppliers so that fixed, uniform procedures and guidelines will support increased reuse through sorting of the Group’s waste.

Falck also seeks to utilise the experience in environmentally hazardous materials gained from its training courses for the offshore industry and other industries.

One example is a course in the safe handling of hazardous substances and materials. After completing the training course, attendees will be able to ensure correct handling, transportation and storage of these materials and chemicals – not least taking the right precautions with respect to personal safety.

It is also part of Falck’s policy to encourage its business part-ners to operate in a sustainable way. In 2013, the Falck Group implemented a new and updated policy for its suppliers and business partners. The policy stresses that suppliers who take steps towards following up more on sustainable environmen-tal procedures and support the development and dissemina-tion of environmentally friendly technologies and working processes should be given priority over other suppliers.

Business ethics

Falck defines business ethics as the broad approach to how a company’s values are translated into day-to-day activities in the organisation or, in other words, the ethical approach reflected in the day-to-day activities of management and em-ployees.

Business ethics at Falck are based on its six values requiring Falck and all Falck staff to be accessible, competent, efficient, fast, helpful and reliable. These values emphasise the fact that, at Falck, saving human lives comes first – no matter where in the world its activities are. Falck saves lives and gets the job done - and does it before considering the matter of payment.

Falck’s ethical approach is rooted in the culture and collabora-tion among firefighters and ambulance staff at the scene of an incident, healthcare staff helping a patient, rescue officers providing roadside assistance and helping drivers continue on their journey, and instructors teaching people how to look after themselves and help others in a crisis situation.

A characteristic feature of the services Falck provides is that they depend completely on the efforts of the individual staff members, who have to be able to rely on each other and as-sume that everyone will do exactly as agreed and as they are trained to do. For this reason, Falck does not compromise on the training of its staff or the safety procedures in place to protect staff and customers. It is important that staff, custom-ers and business partners can rely on Falck.

Providing care for fellow human beings – and doing so fast and efficiently – has always been an important factor in Falck staff career choices. This value is deeply rooted in Falck’s mission, which also includes rescuing people in emergency situations. The communities we are part of and the custom-ers we have contracted with must know that we will provide services as agreed and of a quality matching or exceeding their expectations.





New employees learn about Falck’s values as part of their job introduction.

As a natural part of its corporate values, Falck has a policy of zero tolerance of corruption. From an ethical point of view, corruption is considered to be destructive to personal integ-rity – and harmful to society. Against that background, Falck continued its efforts to formalise the Group’s policies on corruption in 2013, and this focus will be sharpened in 2014 through internal training programmes whose timing will be coordinated to coincide with the implementation of a whistle-blower programme.

No cases of non-compliance with Falck’s corruption ban have been identified.

Society in general

Ever since Sophus Falck founded his rescue service in 1906, the desire to make a difference in the local community has been deeply rooted in Falck’s corporate values. Against this backdrop, Falck has always been an integral part of the local development of the communities we serve.

Falck is based on a philosophy of people helping people: Falck responds when there is a fire; fixes the car when it has broken down; trains people to take care of themselves and others; and Falck prevents and remedies injuries to both the body and mind. Empathy combined with the power to act thus forms a natural part of the hearts and minds of Falck employees, and it is natural for them to participate actively in the local com-munities in which Falck operates.

Falck takes part in social projects in many of the Group’s coun-tries of operation.

In Denmark, a number of initiatives are being implemented to help young people who cannot find a foothold in the labour market or educational system. Based in the individual Falck stations, a large number of local projects have been organ-ised, ranging from mentoring schemes and trainee placement to homework assistance and adult-friend programmes. In ad-dition, there are nationwide initiatives such as the “assistant rescue officer training programme”, in which young people with special challenges are given access to attend a vocational training programme specialising in assistance and automobile services. The objective of the programme is to ensure that the

young people complete a training programme and help them get employment afterwards.

In the Netherlands, Falck supports the Dutch Burns Founda-tion, which helps young people who have suffered severe burns. In addition, Dutch managers and staff have run the Ropa race for many years to raise money to fight cancer.

In Uruguay, Falck lent a helping hand during Heart Week in 2013, offering free heart check-ups at its clinics for women at risk of cardiovascular illness.

In Denmark, Falck continues to donate ambulances, fire-fight-ing vehicles and other equipment to a number of developing countries, while also contributing to a number of charities. Moreover, Falck makes an extra effort to ensure that people with challenges become and remain part of the labour market.

Falck is also focusing on implementing and improving pre-hospital services on a global basis, also by establishing and supporting the Falck Foundation. As the first organisation to support research in the field of pre-hospital medical treat-ment, the Foundation also helps draw additional attention to developments in the field.

The scientific activities of the Falck Foundation are managed by the Medical Advisory Board, whose members are all highly reputed scientists and professors in the field of pre-hospital medical treatment.


• to support health, education and welfare in the Group’s ef-forts to identify business opportunities

• to contribute to economic development and support wel-fare in the world in the long term by investing in new mar-kets

• to contribute to economic development in the areas where Falck has operations

• to increase the awareness of health and safety in order to promote a healthier and safer society

These activities form part of Falck’s corporate values, but they are not specifically related to its commercial activities, and the results Falck wants to achive are, thus, incorporated in the goals set out above.





Gender distribution in the management of Falck

It is the goal of the Falck Group to ensure a diversity in the organisation that reflects the communities we work in and is aligned with the recruitment potential in Falck’s area of business.

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 reflect the gender distribution within the Group’s areas of business.

To ensure that this happens, Falck laid down a policy for this area in 2013 and plans to roll out a number of initiatives. As

an example, it has been resolved that the company wants both genders to be represented when management staff is recruited. It has also been resolved that Management will evaluate once a year whether the current gender distribution in the organisation can be considered to be natural relative to the recruitment basis for staff with the relevant type of skills or educational background.

The Board of Directors has set a target for the number of shareholder-elected female board members: at least one or two persons out of the six shareholder-elected members, who are currently all men. To ensure continuity on the Board of Directors, Falck will seek to meet the target figure within a period of four years.

CSR IS AT THE HEART OF FALCk’S BuSINESS, AND BOTH SOCIAL AND ENvIRONMENTAL CONSIDERATIONS ARE DEEpLy ROOTED IN AND INTEgRATED INTO FALCk’S BuSINESS MODELS AND OpERATIONS. THIS ALSO APPLIES IN FALCK´S DAy-TO-DAy INTERACTION wITH LOCAL COMMuNITIES, BuSINESS pARTNERS, CuSTOMERS AND OTHER STAkEHOLDERS IN AN ENDEAvOuR TO pROMOTE HEALTH, SAFETy AND A gENERAL IMpROvEMENT IN SOCIAL STANDARDS IN THE COMMuNITIES WE pROvIDE SERvICES TO





Corporate governance

Falck’s management monitors corporate governance on a regular basis. This is done to ensure that the Group is managed, both internally and externally, in a manner consistent with na-tional and international rules and in line with the corporate mis-sion, and in a manner that matches the requirements of the dif-ferent stakeholder groups, including shareholder expectations.

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 complies to a great extent with the corporate governance recommendations applicable to companies listed on the NASDAQ OMX Copenhagen stock exchange. However, certain recommendations are considered mainly to be relevant to a company with a broader ownership.

Board of directorsPursuant to Danish legislation, Falck has a two-tier manage-ment system consisting of a Board of Directors and an Execu-tive Management Board. The Board of Directors’ role is to supervise the Group’s activities, development, management and organisation, whereas the Executive Management Board is responsible for the Group’s day-to-day development and operations. The two bodies are independent and do not have overlapping members.

The Board of Directors acts in compliance with applicable legisla-tion and meets a minimum of five times per year, and in addition whenever special cases require that Board meetings are held. The Board of Directors reviews the Group strategy once a year.

Members of the Board of Directors are elected annually.

The Board of Directors of Falck Holding A/S consists of:

Lars Nørby Johansen, ChairmanThorleif Krarup, Deputy ChairmanSteen HemmingsenSøren Thorup SørensenJohannes DueHenrik Poulsen

Via their representation in Falck A/S and Falck Danmark A/S, employees are also offered to participate in the board meet-ings of Falck Holding A/S.

Board members elected by the employees who also partici-pate in the board meetings of Falck Holding A/S are:

Vagn Flink Møller Pedersen (elected by the employees of Falck A/S and Falck Danmark A/S)Henrik Villsen Andersen (elected by the employees of Falck A/S and Falck Danmark A/S)Allan Rensgaard (elected by the employees of Falck Danmark A/S)Jan Heine Lauvring (elected by the employees of Falck A/S)

Thorleif Krarup and Steen Hemmingsen represent the princi-pal shareholder of the Falck Group, the Lundbeck Foundation.

The other board members are independent of the Falck Group.

audit committeeThe Audit Committee monitors the Group’s financial report-ing process, accounting policies, statutory auditing of the an-nual report and the effectiveness of the internal control and risk management systems on behalf of the Board of Directors. In addition, the Committee makes recommendations on these issues to the Board of Directors and follows up, on behalf of the Board of Directors, on the implementation of initiatives to be taken by the Executive Management Board. The Com-mittee receives information from a number of head office departments and from the company’s auditors.

Audit Committee members are Søren Thorup Sørensen, Chair-man, and Steen Hemmingsen, both elected by the Board of Directors. Also attending this committee’s meetings are the Executive Management Board and the Chief Financial Officer. The company’s auditor attends the meetings of the Audit Committee to the extent necessary. The Audit Committee meets at least three times a year.

Executive Management BoardThe Executive Management Board is responsible for the day-to-day development and operation of Falck with a primary fo-cus on developing and implementing strategies and significant initiatives approved by the Board of Directors. Moreover, the Executive Management Board is responsible for ensuring that the Board of Directors is informed about all material matters.

The Executive Management Board consists of Allan Søgaard Larsen, President and CEO, and Morten Reignald Pedersen, Deputy CEO.




Key figures | Foreword | Highlights | Business areas | CSR | corporate governance | Financial review | Risk factorscorporate governance

Employee investmentIn order to attract and retain the Group’s management com-petencies, the remuneration paid to members of the Execu-tive Management Board and senior management employees reflects the work they do, the value they create and what their peers in comparable companies receive. To ensure that the interests of the Group’s Management and the sharehold-ers coincide, a number of senior management employees have been offered the opportunity to invest in the Falck Group. A substantial share of the Group’s senior management employees have elected to take advantage of this opportu-nity to invest in the Group, and the group of senior manage-ment employees, excluding the members of the Executive Management Board, thus hold 2,77% of Falck Holding A/S.

The members of the Executive Management Board hold a to-tal of 10.25% of the shares of Falck Holding A/S.

risk managementIn Falck, risk management is considered an important and natural part of the work to realise Falck’s goals and strategy.

There are risks inherent in day-to-day activities, in implement-ing the strategy laid down and in exploiting business opportu-nities that may arise, so the handling of these risks is consid-ered a natural and integral part of the day-to-day work and a way of ensuring stable and reliable growth.

Falck’s management continuously discusses the Group’s risks and how they can best be handled for the individual business areas and the Group as a whole in order to ensure that risk management is efficient.

The management of each of the business areas is responsible for establishing and developing relevant risk management and a sound and sufficient control environment. The management of the individual business units is responsible for identifying, as-sessing and handling risks and for reporting on such risks to the Group Risk Management Department and the Executive Man-agement Board with a view to ensuring continuing improve-ment and transparency of risk management across the Group.

internal controlThe management of the Falck Group requires the companies of the Group to meet a high standard with respect to business procedures and internal control which, based on an individual assessment of the activity of each company, ensures that management can use reporting from the companies as a true and fair basis for making decisions.

Business procedures and internal controls include, among other things, segregation of duties and areas of responsibility, descriptions of functions, procedures, control measures and analytical controls.

The corporate finance function has defined a number of monthly reporting requirements which comprise a full income statement, balance sheet and cash flow statement. Moreover, additional relevant specifications, material for analysis and comments on the reports submitted are supplied every month.

The monthly reporting from all companies of the Group is con-solidated into the Group financial statements. In addition to the consolidation of relevant line items, this process includes an analytical review of individual line items and a performance comparison with the previous year and with forecasts.

The analysis is carried out at Group, company and business-area level, ensuring among other things, that accounting policies are consistently applied and there is a correlation between activity performance and financial reporting. The monthly reporting to the Board of Directors and the Executive Management Board is prepared based on the consolidation, information received, analyses and information obtained.

Both the consolidation and the analyses are performed by employees who are accounting specialists and have insight into the accounting context of the transactions included in the consolidation. Most of these specialists have a profes-sional background in auditing. In addition, each business area has business controllers who have a deeper insight into the business aspects of the activity and its performance. As a sup-plement to a continual dialogue, meetings are held five times a year between the management of each business area and the Executive Management Board to review and discuss the business and financial performance of the area.

In addition to the processes described above, the group finance function pays regular visits to the companies of the Group to ensure that necessary business procedures and internal controls have been established for their activities to ensure true and fair reporting to the Group. The results of each visit are reported to the Executive Management Board and the management of the business area in question, and it is ensured that any improve-ments proposed are subsequently implemented. Moreover, the annual reporting to the Board of Directors’ Audit Committee in-cludes a review of the visits made during the year, the results of these visits, and a specification of special areas of focus and the companies selected to receive visits during the next period.




Key figures | Foreword | Highlights | Business areas | CSR | corporate governance | Financial review | Risk factors

Financial review

Revenue for 2013 was DKK 12,534 million (2012: DKK 11,504 million), a year-on-year increase by DKK 1,030 million or 9.0%, which was generated in spite of an adverse impact of DKK 158 million from exchange rates. The rate of organic growth was 7.7%. The revenue growth and organic growth met Man-agement’s expectations.

Revenue generated outside Denmark continued to increase and accounted for 53.4% in 2013 (2012: 51.6%). The rate of organic growth outside Denmark was 10.2%, which was pri-marily achieved through strong growth in the United States and Latin America.

Operating profit before costs and amortisation from business combinations and exceptional items (EBITA) was DKK 1,112 million (2012: DKK 1,083 million), equivalent to growth of DKK 29 million, including a negative impact from exchange rates of DKK 23 million. The EBITA margin was 8.9%, which was slightly below the original expectation for 2013 as a result of the implementation of additional growth initiatives which had an adverse impact on the Group’s earnings during start-up.

Falck generated a free cash flow of DKK 983 million in 2013 (2012: DKK 966 million). Thus, 88.4% of EBITA was converted into free cash flow in 2013 (2012: 89.2%).

Basis of preparationThe financial review is based on the figures and ratios stated on page 2, and the figures can consequently not be derived directly from the consolidated financial statements.

GROUP PERFORMANCE IN 2013

Consolidated income statementConsolidated revenue for 2013 was DKK 12,534 million (2012: DKK 11,504 million). The year-on-year increase was DKK 1,030 million or 9.0%, of which organic growth accounted for 7.7%. All business areas contributed to the organic growth. Emer-gency, the Group’s largest business area, generated 7.7% organic growth, primarily as a result of significant growth in North America and Latin America. Both Healthcare and Safety Services generated double-digit organic growth rates as a re-sult of significant growth in most of the geographies of these business areas.

Falck made a number of acquisitions in 2013, of which espe-cially ambulance companies acquired in the United States and Germany contributed to the growth in revenue, whereas exchange rates had an adverse impact on revenue.

Since 2009, the Group has achieved an average annual revenue growth of 13.6%.

Revenue and organic growthDKK million %

14

12

10

8

6

4

2

0

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0

2009 2010 2011 2012 2013

EBITA and EBITA marginDKK million %

12

10

8

6

4

2

0

1,200

1,000

800

600

400

200

0

2009 2010 2011 2012 2013

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

Revenue, pro forma EBITA margin Revenue, Falck Holding A/S




Key figures | Foreword | Highlights | Business areas | CSR | Corporate governance | financial review | Risk factorsfinancial review

Other operating income amounted to DKK 65 million (2012: DKK 46 million). This was attributable to gains from sales of non-current assets and to rent of premises.

EBITA was DKK 1,112 million (2012: DKK 1,083 million), equiv-alent to an EBITA margin of 8.9%.

The year-on-year growth in EBITA was driven by growth in Emergency, Healthcare and Safety Services, which was partly offset by a downturn in Assistance as a result of sales costs in connection with the expansion of the alarm portfolio and the establishment of Falck Global Assistance.

Costs and amortisation from business combinations totalled DKK 550 million (2012: DKK 551 million).

As opposed to 2012 (a cost of DKK 24 million), there were no exceptional items affecting profit in 2013.

Financials were on a level with 2012 and amounted to a net expense of DKK 309 million (2012: DKK 312 million).

Profit before tax was DKK 249 million (2012: DKK 196 mil-lion). The increase was attributable to the above-mentioned increase in EBITA and the fact that there were no exceptional items in 2013.

Tax on the profit for the year was DKK 44 million (2012: DKK 77 million), equivalent to an effective tax rate of 17.5% (2012: 39.3%). The decline was driven by a reduction of the deferred tax liability due to a reduction of the corporate tax rate in Denmark. Adjusted for this one-off effect, the Group’s tax rate would have been in the region of 36,8%.

Profit for the year was DKK 205 million (2012: DKK 119 million).

The normalised profit for the year after tax was DKK 568 mil-lion (2012: DKK 559 million).

Cash flowThe free cash flow was DKK 983 million (2012: DKK 966 mil-lion), and the Group’s cash conversion rate (free cash flow divided by EBITA) was 88.4% (2012: 89.2%).

The free cash flow in 2013 was affected by the investment of DKK 182 million (2012: DKK 184 million) in non-current assets related to the expansion and start-up of activities, compared with a total investment of DKK 504 million (2012: DKK 472 million).

Income taxes paid amounted to DKK 250 million (2012: DKK 218 million),of which DKK 133 million was paid in Denmark (2012: DKK 112 million). Falck paid DKK 290 million of direct and indirect taxes in Denmark in 2013.

EBITA, free cash flow and cash conversion rateDKK million %

180

150

120

90

60

30

0

1,200

1,000

800

600

400

200

0

2009 2010 2011 2012 2013

Net operating assets excluding goodwillDKK million

2009 2010 2011 2012 2013

Free cash flow Cash conversion rate EBITA

pro forma Falck Holding A/S

1,000

800

600

400

200

0




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Interest paid amounted to DKK 281 million (2012: DKK 300 million), the decline being due to a lower average rate of interest.

Payments for acquisitions totalled DKK 730 million (2012: DKK 553 million) and primarily related to the acquisitions of G.A.R.D. (Germany), Verihealth (United States), Hostile Environment Service (Australia) and Skandinavisk Hälsovård (Sweden).

Dividends paid, changes in interest-bearing debt and other equity movements relating to shareholders generated a cash inflow of DKK 260 million which was attributable to loans raised to finance the year’s acquisitions.

CONSOLIDATED BALANCE SHEET

net operating assetsConsolidated net operating assets excluding goodwill stood at DKK 886 million (2012: DKK 655 million).

The increase in net operating assets was mainly attributable to Emergency, primarily the acquisitions in the United States, Germany and Australia, and the start-up of new activities in the United States and a general increase in capital expendi-ture in 2012 and 2013.

Consolidated net operating assets including goodwill stood at DKK 13,097 million (2012: DKK 12,842 million). The increase was the result of the above-mentioned net increase in net operating assets and additions to goodwill and intangible

assets from acquisitions, which were partly offset by amorti-sation from business combinations and the adverse effect of exchange rates.

equityEquity attributable to Falck Holding A/S was down by 2.2% to DKK 5,393 million (2012: DKK 5,512 million). The fall was mainly attributable to exchange differences and value adjust-ments of commitments to buy non-controlling interests, part-ly offset by the increase attributable to the profit for the year.

Non-controlling interests totalled DKK 62 million (2012: DKK 77 million) and primarily related to non-controlling interests in the Safety Services activities in Nigeria and the Emergency activities in Spain and Slovakia.

net interest-bearing debtThe Group’s net interest-bearing debt increased by DKK 460 million to DKK 6,215 million from a starting point of DKK 5,755 million at year-end 2012. The increase was due to loans raised in connection with the acquisitions made during the year.

Provisions for acquisitions of operations and non-control-ling interestsContingent consideration and earn-outs payable totalled DKK 123 million (2012: DKK 56 million). The increase was mainly at-tributable to the acquisitions made during the year. Provisions for acquisitions of non-controlling interests totalled DKK 898 million (2012: DKK 655 million) based on expected earnings at the time of exercise. The year-on-year increase was attribut-

FALCK MADE A NuMBER OF ACquISITIONS IN 2013, OF wHICH ESpECIALLy AMBuLANCE COMpANIES ACquIRED IN THE uNITED STATES AND gERMANy CONTRIBuTED TO THE gROWTH IN REvENuE, WHEREAS ExCHANgE RATES HAD A MAjOR ADvERSE IMPACT ON REvENuE





able to acquisitions made during the year and reassessment of and the interest element of the discounted commitments. If the non-controlling shareholders of the relevant subsidiar-ies do not exercise their options to sell their shares, Falck has an opposite option to buy the shares in agreed periods.

acquisitionsThe Falck Group’s most important acquisitions in 2013 were:

G.A.R.D.In 2013, Falck acquired German-based G.A.R.D., which has about 1,000 employees and 340 vehicles and operates in the fields of ambulance services and patient transportation.

Hostile Environment Services Pty LtdIn 2013, Falck acquired 55% of the shares in Australian-based Hostile Environment Services Pty Ltd (HES). This company pro-vides emergency and related services to the mining, oil and gas industries in Australia.

Skandinavisk HälsovårdIn the autumn of 2013, Falck acquired Skandinavisk Hälsovård AB, a company that provides doctors and nurses on a tempo-rary basis throughout the Nordic region.

VerihealthFalck also acquired Verihealth in 2013, a company that primar-ily provides patient transportation services in northern Cali-fornia, USA. The company has 100 employees and 30 vehicles.

denmark Revenue in Denmark was DKK 5,839 million. This represented a year-on-year increase of DKK 271 million or 4.9%. The rate of organic growth was 5.0%. The increase in revenue was mainly generated through growing activity within interdis-ciplinary treatment and staffing services provided by the Healthcare business, non-emergency patient transportation in the Capital Region provided by the Emergency business, and the activities of Falck Global Assistance.

EBITA was up by DKK 44 million to DKK 607 million (2012: DKK 563 million). The EBITA margin was 10.4% in 2013 (2012: 10.1%).

nordic regionRevenue from operations in the Nordic region (excluding Denmark) was down by DKK 78 million to DKK 2,055 million, representing a year-on-year decline of 3.7%. This downturn was the result of a political decision to insource activities to public operation in Norway and Sweden without a public pro-curement process.

EBITA was DKK 97 million, equivalent to an EBITA margin of 4.7%. EBITA was down by DKK 46 million or 32.2% year on year, which was caused by the fall in activity in the Emergency business as a result of insourced activities, a shortage of spe-cially trained ambulance nurses in Sweden and higher costs incurred by the Assistance business to provide services in Sweden and Norway. The increase was only partly offset by an improvement in earnings in Healthcare Sweden.

Revenue, EBITA and organic growth by geographical area

Revenue EBITA EBITA margin (%) Organic growth (%)(1)

% of total 2013 2012 2013 2012 2013 2012 2013 2012

Denmark 46.6 5,839 5,568 607 563 10.4 10.1 5.0 1.4 Nordic region 16.4 2,055 2,133 97 143 4.7 6.7 6.2 22.8 Europe 13.3 1,668 1,475 150 151 9.0 10.2 4.4 12.8 North America 15.0 1,872 1,354 52 39 2.8 2.9 17.1 5.0 Latin America 6.7 844 781 154 135 18.2 17.3 19.0 13.4 Rest of the world 2.0 256 193 52 52 20.3 26.7 10.6 20.8 group total 100.0 12,534 11,504 1,112 1,083 8.9 9.4 7.7 7.6

(1) Organic growth has been calculated based on pro forma figures for 2011.





europeRevenue generated in Europe (excluding Denmark and the Nordic region) was DKK 1,668 million. This represented a 13.1% year-on-year increase from DKK 1,475 million, of which 4.4% was organic growth. The growth was mainly attributable to the acquisition of G.A.R.D. in Germany and new Emergency service contracts in Germany, Finland and Slovakia.

EBITA was DKK 150 million, a minor decline of DKK 1 million on 2012. The EBITA margin was down from 10.2% to 9.0%.

north americaRevenue generated in North America amounted to DKK 1,872 million. This represented a 38.3% year-on-year increase from DKK 1,354 million, of which 17.1% was organic growth. The growth was generated both by the Emergency business and by Safety Services. In addition to existing activities, the growth generated by the Emergency business came from new operations in California, Massachusetts and Washington state.

EBITA was DKK 52 million, equivalent to an EBITA margin of 2.8%. EBITA was up by DKK 13 million year on year driven by an increase in earnings in the Safety Services business, primarily as a result of the acquisition of Occupational Safety Training in December 2012. This was partly offset by lower earnings from ambulance services due to costs incurred to start up operations in new areas.

latin americaRevenue in Latin America amounted to DKK 844 million. This represented an 8.1% year-on-year increase from DKK 781 mil-lion, of which 19.0% was organic growth. The organic growth was generated by a general increase in revenue from Emer-gency services, especially driven by growth in Colombia and Uruguay.

EBITA rose by 14.1% to DKK 154 million (2012: DKK 135 mil-lion). The increase was mainly driven by operations in Colom-bia, Uruguay and Venezuela. The EBITA margin increased from 17.3% to 18.2%.

rest of the worldRevenue generated in the rest of the world totalled DKK 256 million. The year-on-year increase in revenue was DKK 63 mil-lion or 32.6%, which was primarily driven by the acquisition of HES in Australia in 2013 and Open Clinics in Kazakhstan in

2012. The rate of organic growth was 10.6%, mainly driven by high growth in Malaysia.

EBITA was DKK 52 million, which was unchanged from 2012.

OUTLOOK FOR 2014

Revenue for 2014 is expected to grow by more than 10% as a result of the full-year effect of acquisitions already made and assuming continued satisfactory organic growth.

The EBITA margin for 2014 is expected to continue to be ad-versely affected by costs related to growth initiatives, but the margin is expected to remain at about 9%.

FORWARD-LOOKING STATEMENTS

Certain statements in this financial review are forward-looking statements. Such statements are based on current expectations and are by their nature subject to a number of uncertainties that could cause actual results and performance to differ materially from future results or performance, ex-pressed or implied, in the forward-looking statements.

SHAREHOLDERS OF FALCK HOLDING A/S

Shareholders holding 5% or more of Falck Holding A/S are shown in the table below.

shareholders of falck holding a/s

Name Ownership

Lundbeckfond Invest A/S, Copenhagen 57.36%KIRKBI Invest A/S, Billund 26.46%Liberatio A/S, Copenhagen (owned by executive management) 10.25%Other 5.93%

Lundbeckfond Invest A/SThe Lundbeck Foundation holds 57.36% of the shares and is thus Falck’s largest and controlling shareholder. The Lundbeck Foundation was founded in 1954 by Grete Lundbeck, widow of the founder of Lundbeck, a major Danish pharmaceutical company. The Foundation has two objects, partly to maintain and expand the activities of Lundbeck and the Foundation’s





other companies through active, value-creating ownership, and partly to make non-profit grants for scientific research of a high, international quality with a view to making a signifi-cant difference to people’s health and lives. The grants are awarded on the basis of external peer reviews and indepen-dently of Falck 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 DKK 400-500 million annually for natural sciences as well as for 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, is a strategic initiative to accelerate the commer-cialisation of early scientific projects through investment and active participation.

Additional information on the Lundbeck Foundation is avail-able at www.lundbeckfonden.com.

KirKBiThe KIRKBI Group holds 26.46% of Falck’s shares. KIRKBI In-vest A/S is the holding and investment company of the Kirk Kristiansen family, and it also holds 75% of the LEGO Group, 29.9% of Merlin Entertainments PLC, trademarks and part of an offshore wind farm under construction. In addition, KIRKBI holds an investment portfolio which includes assets such as shares, real property and private equity investments.

A common feature of all KIRKBI investments is a focus on quality, entrepreneurship and care for people.

Additional information on KIRKBI is available at www.KIRKBI.com.

EVENTS AFTER THE BALANCE SHEET DATE

No events have occurred after the balance sheet date that have a material impact on the financial position of the Falck Group.





Risk factors

Falck is fundamentally resilient against strategic, operational and financial risks. This is partly due to the extensive diversifi-cation of the business in terms of different markets, business models, customers and services, but also to the fact that most of the services provided by Falck benefit from a stable level of demand that is not subject to economic fluctuations and typi-cal demand-regulating factors.

Out of concern for its customers, business partners, employ-ees, suppliers, owners and other stakeholders, Falck pursues a comprehensive and firmly anchored risk management pro-cess across the entire business. Falck’s Board of Directors and Executive Management Board are committed to monitoring all risks to the organisation’s inherent value and future value generation.

The Executive Management Board reviews Falck’s overall risk exposure and a large number of the Group’s most critical risks semi-annually. The reviews encompass an assessment of gross and net risks, including an evaluation of the effectiveness of the deployed mitigating strategies. The various risks are as-sessed against the likelihood that the risk scenario will materi-alise and its potential consequences.

The Executive Management Board also considers whether the net risk is within the defined risk tolerance level, which is derived from the Group’s strategy. If the net risk is not ac-ceptable, the Executive Management Board will implement additional mitigating strategies to the extent possible in order to reduce the net risk to an acceptable level. The Execu-tive Management Board presents the risk assessment to the Board of Directors once a year to form a basis for discussion of the Group’s risks.

There are risks inherent in day-to-day activities, in imple-menting the strategy laid down and in exploiting business opportunities that emerge, so the handling of these risks is considered an integral part of the day-to-day work and a way of ensuring stable and predictable growth.

This description of risk factors includes examples of the risks which Management estimates may have an impact on the Group’s future growth, activities, financial position and earn-ings, and it is not an exhaustive description of the Group’s risks. The risk factors are divided into business risks and finan-cial risks and are presented in a random order.

Business risks

Corporate valuesIt is characteristic of Falck that most of its customers meet Falck staff directly in connection with the provision of a spe-cific service. For that reason, all employees must be ambas-sadors of Falck. Falck loses an important asset if this is not achieved. However, Falck’s continuing geographical expansion and the development of new types of services may present a challenge to the traditional Falck spirit. To address this, guide-lines and forums have been established aimed at anchoring and ensuring compliance with Falck’s corporate values of be-ing accessible, competent, efficient, fast, helpful and reliable.

Falck must continue to have a positive and credible reputation in order to be accepted as a provider of services to the public sector and to private and business customers worldwide.

In a worst-case scenario, any failure to comply with basic mor-al and ethical standards as well as international and national law, regulations and other regimes regarding good business conduct may prevent or restrict Falck’s access to a market or to large, global customers, in addition to the risk of potential legal sanctions. In order to constantly ensure compliance, the Executive Management Board regularly evaluates whether new activities are consistent with Falck’s corporate values. The Executive Management Board will refrain from activities that could trigger doubt as to whether Falck complies with its corporate values. Similarly, regular internal control visits to Falck’s operating companies ensure that any failure to comply with the corporate values is identified and rectified.

The management of each business entity is responsible, together with the Executive Management Board, for compli-ance, dissemination and anchoring of the Falck Code of Con-duct. To provide support in fulfilling this responsibility, con-tinuous efforts are made to develop additional descriptions and to train Falck staff in the company’s Code of Conduct. In addition, Falck is ready to implement a whistleblower scheme pending approval by the Danish Data Protection Agency, which is expected to be given in the first part of 2014.

Outsourcing of public-sector operating activitiesAlthough Falck is constantly developing its engagement with the private sector on a global basis, many of Falck’s activities are still based on the provision of outsoucerd public services. For this reason, Falck is dependent on the willingness of these authorities to continue outsourcing pre-hospital services, fire-fighting and other services.




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Business risKs | Financial risks

There are different traditions for outsourcing public-sector services to private service providers in Falck’s various markets. Falck continues to maintain a dialogue with public-sector cli-ents in those markets in order to ensure that the best possible basis is available for these authorities to make their decision.

Falck’s high quality and cost efficiency should continue to encourage political authorities and public-sector healthcare organisations to outsource services within Falck’s areas of business, not least during a period with pressure on public budgets and ever increasing requirements to the healthcare services in many countries.

If the public authorities in major markets should decide to insource already outsourced services, of if Falck is not suc-cessful in winning the contracts for such services in public procurement processes, it would have an adverse impact on Falck’s business.

Even in markets that outsource services, there is a risk of re-strictions in Falck’s opportunity to win contracts if current ser-vice providers are favoured in the selection process. This may happen if existing contracts are extended without a competi-tive procurement process, or if technical requirements in the call for tenders make it impossible for new alternative service providers to submit bids.

Also in this area, Falck seeks to maintain a dialogue with politi-cal decision-makers in order to ensure that the consequence of non-competition for the contracts, i.e. typically higher costs, is clearly described.

Moreover, Falck pursues all relevant opportunities to submit complaints if the case is sufficiently serious. Falck has lodged a complaint with the European Commission regarding non-compliance with the EU public procurement rules in certain regions in Spain, Austria and Germany.

Operating efficiency and competitivenessFalck’s activities are labour-intensive and thus affected by the cost of labour, pension costs, working hours regulations, social security contributions and employee benefits provided to Falck’s employees. Falck can be affected by the market not accepting price increases that are explained by increases in payroll costs.

However, it has historically been possible to factor a large share of Falck’s payroll cost increases into its pricing.

For each of its business areas, Falck has established an organi-sation with the objective to ensure a high level of operating efficiency without compromising quality, for example through global and regional procurement agreements for large categories of equipment and sharing of experience across national borders with respect to optimisation of business pro-cedures and day-to-day operations.

In order to further strengthen its competitiveness, Falck con-tinuously seeks to determine the current and future require-ments of its customers in order to provide convincing and competitive solutions.

QualityFalck owes its customers, employees and other stakeholders to maintain the highest possible level of quality in its activi-ties. Falck invests substantially in both equipment and staff within all its business areas in order to safeguard the quality of the services it provides.

Quality assurance forms part of day-to-day management and is, for example, reflected in daily check lists for the operating staff, training programmes for rescue staff and other special-ists, and procedures for preventive maintenance of equip-ment.

In the business areas where it is possible, Falck participates actively in the accreditation and certification of its various op-erating organisations.

competitionFalck thrives in a free market. Falck’s competitiveness sup-ports the existing business and provides a strong basis for continued growth.

Falck faces competition in all its business areas and is conse-quently regularly challenged with respect to market share and profitability. The competitors are local, regional or global service providers in the different business areas. However, there is no single organisation that offers the same product portfolio as Falck does.

Falck has seen that competition, even when it results in lower profitability and loss of market share, promotes Falck’s busi-ness overall, and Falck’s continuing focus on its competitive-ness reduces this risk to an acceptable level at which Falck can win and retain a share of the market that is suitable in view of the prevailing conditions in the market.




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Business risKs | Financial risks

It happens frequently that an aggressive competitor seeks to buy market share by offering unrealistic prices or discount so-lutions in the hope of generating future revenues. Falck does not consider such an approach viable, nor does Falck believe that it is in the interest of the public sector or the customers, so Falck does not wish to offer discount solutions or operate its business at a loss, and aggressive competitors have thus far not shown themselves able to maintain a viable business in the long term.

Much of Falck’s business volume is provided under large con-tracts. If Falck loses such a contract, such a loss cannot always be covered by other contracts and may therefore result in a decline in revenue and possibly in restructuring costs as well. However, the Falck organisation as a whole is well covered, as even large contracts will be limited to one business area and typically to one market.

acquisitions and organic growthFalck’s business plans are based on growth, both based on its current business and through acquisitions. If the potential benefits of acquisitions or new activities fail to materialise, the invested capital may be lost, and this may lead to future limitations in the room to manoevre.

Falck’s business areas conduct a careful analysis of the poten-tial and risks in the short and long term before any decisions are made to invest in an expansion of existing activities or in an acquisition. The Executive Management Board approves all investments based on an analysis and assessment of the over-all alignment with Falck’s strategy.

All major acquisitions and investments are continually fol-lowed up on so that action can be taken in the event of any deviation from the original business plan. Moreover, Falck’s investments are relatively limited in size, which means that the failure of a single investment would have limited financial consequences.

Management and organisationFalck continuously expands and strengthens the management levels of its business areas and operating companies in order to meet its high ambitions with respect to continued growth, globalisation and product development. Falck aims to ensure that the executive directors of its operating companies pos-sess the capabilities necessary to pursue growth opportuni-ties while also remaining in charge of rational and customer-orientated operations.

If these demands cannot be fully met globally, this may have consequences for the operation of the business, just as its growth potential may be stunted. Recent years’ experience in-dicates that Falck is able to attract and retain executives with suitable experience and appropriate backgrounds.

Falck depends on being able to attract and retain employees with special competencies, training and experience, including ambulance and medical staff. Such staff are a prerequisite for Falck’s ability to maintain and develop its business. Falck strives to be a good and attractive employer for all types of staff, also in the long term. Falck invests significant resources in developing employee competencies and maintaining their job motivation throughout their employment.

Falck also maintains a close dialogue with its customers about their current and future needs so it has the right human re-sources and can provide high-quality cost-efficient services to its customers.

it-related operating breakdownsFalck’s business model and operations are to a great extent dependent on well-functioning IT and communications systems.

Falck’s central systems for handling operations are designed to withstand power and data line failure and similar events to the greatest possible extent. The historical operating reliability of Falck’s system has been very high, and Falck works continually to maintain and further develop plans for re-establishing communications systems, business-critical ap-plications and other infrastructure to ensure continued opera-tions in the event of a breakdown.

Financial risks

interest rate and foreign exchange riskThe Group’s average rate of interest was 4.0% in 2013 (2012: 4.3%). The interest rate risk is affected by the Group’s general financing. Based on the current market situation, the Group’s Executive Management Board and the Board of Directors have decided to extend the interest rate swaps that expire in 2014 until 2016 and 2017, so that 70 - 80% of the expected financing is at fixed rates of interest. The rest of the financing is based on short-term interest rates.




Key figures | Foreword | Highlights | Business areas | CSR | Corporate governance | Financial review | risK factorsfinancial risKs

Business risKs | financial risKs

For this reason, the Group is only to a minor extent sensitive to fluctuations in market interest rates, and a fluctuation by 1% would change the interest expense for the year by DKK 26 million.

Sensitivity analysis, market-rate fluctations of 1%

DKK million 2013 2012

DKK 25 21EUR 0 - USD 1 1Other 0 1total 26 23

The Group monitors developments in market interest rates closely in order to be able to react if the market situation changes.

The exchange rate exposure of the Group’s transactions is limited since subsidiaries outside Denmark largely operate in local currencies, to the effect that revenues and most of the expenses of the individual subsidiaries are in the same cur-rency. The main exchange rate exposure faced by the Group relates to the translation into DKK of the financial results and equity of subsidiaries.

A concurrent fall in all exchange rates by 1% relative to the DKK would reduce revenue by DKK 48 million, EBITA by DKK 4 million and equity by DKK 30 million.

The Group regularly assesses its foreign exchange risk in or-der to determine whether its exposure should be hedged by loans in the same currencies or forward exchange contracts.

For a more detailed description of the Group’s exchange rate and currency risks, please see note 31.

credit riskThe Group does not have material risks on any single custom-er or business partner.

When entering into significant contracts, the Group makes a credit assessment of the customer in order to assess the po-tential credit risk. Trade receivables are monitored and evalu-ated on a continuing basis in order to assess any need to make provisions for bad debts.

The Group’s credit exposure to large customers is considered low as the Group’s large customers are, to a great extent, public authorities.

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, and both general and individual write-downs are made for anticipated bad debts.

Falck’s entry on the ambulance market in the United States has increased the Group’s credit risk because payment for am-bulance 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. Col-lection can be difficult, especially in the case of emergency transport.

liquidity riskThe Group’s liquidity risk primarily concerns its ability to meet its obligations to pay its employees and creditors and to ser-vice its debts. The Group continuously monitors its free cash flow in order to assess its liquidity risks. Certain of the Group’s loans, including debt held by Falck Holding A/S, are subject to certain loan covenants, and the Group continuously monitors whether the covenants are observed.

The Group’s cash reserve comprises cash and cash equivalents and unused credit facilities. The purpose of the cash resour-ces is to allow the Group to operate adequately in the event of unforeseen fluctuations in available funds.

At year-end 2013, the Group’s unused credit facilities totalled DKK 849 million, of which DKK 349 million was solely available for acquisitions. With the addition of available cash and cash equivalents of DKK 1,006 million, total cash resources were DKK 1,855 million. Management believes that the Group’s cash resources are fully sufficient.

capital structureThe Group is not subject to general capital requirements other than the standard statutory requirements. The Com-pany’s share capital is not divided into share classes. The capi-tal structure has been determined based on an assessment of how large a debt the Group is able to service in a suitable manner as well as the amounts of earnings and cash flows generated in the Group in view of the Group’s growth expec-tations and ambitions.





Business risks | financial risKs

The Group is financed by an overall syndicated loan raised by the Parent Company, Falck A/S, and Falck Danmark A/S. The loan terms include covenants requiring that certain financial performance indicators are met. All loan terms were hon-oured in 2013. The outstanding debt as at 31 December 2013 was DKK 6,505 million. Through regular instalments payable on the syndicated loan from 2014 to 2017, the debt will be reduced to DKK 4,551 million, which must be repaid in full in 2018.

Moreover, the Group has mortgage loans totalling DKK 354 million and other interest-bearing debt of DKK 416 million.

The Group monitors and manages its capital structure with a view to ensuring that it can meet all its financing obligations.

As at 31 December 2013, the Group’s net interest-bearing debt stood at DKK 6,215 million, while equity totalled DKK 5,455 million.





Business risks | financial risKs


Notes to the balance sheet

13. Intangible assets 62

14. Property, plant and equipment 64

15. Investments in associates 65

16. Inventories 65

17. Trade receivables 65

18. Cash and cash equivalents 66

19. Equity, treasury shares and dividends 66

20. Other employee obligations 67

21. Deferred tax 68

22. Provisions for acquisitions of operations

and non-controlling interests 69

23. Other provisions 69

24. Credit institutions 71

25. Other payables 71

26. Deferred income 71

Notes to the cash flow statement

27. Net financials 71

28. Investments in subsidiaries, non-

controlling interests and operations 71

29. Movements relating to non-

controlling interests 73

Supplementary notes

30. Contingent liabilities, contractual

obligations and collateral security 74

31. Financial instruments 75

32. Related parties 82

33. Events after the balance sheet date 83

34. Accounting estimates and judgments 83

35. Accounting policies 84

Financial statements

Income statement 49

Statement of comprehensive income 50

Cash flow statement 51

Balance sheet 52

Equity statement 54

Notes to the financial statements

1. Segment information 55

Notes to the income statement

2. Revenue 58

3. Other operating income 58

4. Fees to auditors appointed at

the annual general meeting 59

5. Staff costs 59

6. Amortisation, depreciation and impairment 60

7. Income after tax from associates

8. Amortisation of intangible assets

and costs from business combinations 60

9. Exceptional items 60

10. Financial income 60

11. Financial expenses 60

12. Income taxes 60

Contents of the consolidated financial statements


Income statement | Statement of comprehensive income | Cash flow statement | Balance sheet | Equity statement | Notesconsolidated financial


Income statement for the year ended 31 December

Note DKK million 2013 2012 2 Revenue 12,534 11,504 3 Other operating income 65 46 Cost of sales and external assistance -1,515 -1,371 4 Other external costs -2,558 -2,297 5 Staff costs -7,073 -6,486 6 Amortisation, depreciation and impairment -895 -864 7 Income after tax from associates, primary activities 4 -

operating profit before exceptional items 562 532

Analysed as follows: operating profit before costs, amortisation from business combinations and exceptional items 1,112 1,083 8 Amortisation of intangible assets and costs from business combinations -550 -551 operating profit before exceptional items 562 532 9 Exceptional items - -24

PRoFIT BEFoRE FINANCIAlS 562 508 7 Income after tax from associates, secondary activities -4 - 10 Financial income 21 29 11 Financial expenses -330 -341

PRoFIT BEFoRE TAX 249 196 12 Income taxes -44 -77

PRoFIT FoR THE YEAR 205 119

AlloCATIoN: Falck Holding A/S 198 107 Non-controlling interests 7 12

ToTAl 205 119



incoMe stateMent | Statement of comprehensive income | Cash flow statement | Balance sheet | Equity statement | Notescon incoMe stateMent


Statement of comprehensive income for the year ended 31 December

Note DKK million 2013 2012

Profit for the year 205 119

Itemsthatcannotbereclassifiedtotheincomestatement Actuarial adjustment of pension provisions 1 1

1 1 Itemsthatcanbereclassifiedtotheincomestatement Foreign exchange differences -220 -5 Value adjustment of currency hedging instruments 9 11 Value adjustment of interest hedging instruments 51 -32 Adjustment for hyperinflation -2 1 12 Tax 28 1

-134 -24

other comprehensive income after tax -133 -23

ToTAl ComPREHENSIvE INComE 72 96

AlloCATIoN: Falck Holding A/S 66 83 Non-controlling interests 6 13

ToTAl 72 96



Income statement | stateMent of coMprehensive incoMe | Cash flow statement | Balance sheet | Equity statement | Notescon coMprehensive


Cash flow statement for the year ended 31 December

Note DKK million 2013 2012 Total revenue 12,599 11,550 Total costs -12,037 -11,018

operating profit before exceptional items 562 532 6 Amortisation, depreciation and impairment 895 864 Costs from business combinations 45 36

Profit before financials and amortisation, depreciation and impairment 1,502 1,432 Reversal of profit/(loss) on divestment of non-current assets -11 -22 Change in operating assets -143 -164 Movements relating to associates -35 -6 Change in operating payables 102 178 Change in provisions 26 -7

Cash flow from operating activities before financials, exceptional items and tax 1,441 1,411 Exceptional items - -37 27 Net financials -281 -300 12 Income tax paid -250 -218

CASH FlowS FRom oPERATING ACTIvITIES 910 856

28 Investments in subsidiaries, non-controlling interests and operations -638 -473 Cash flows from hedging of net investments 34 -82 28 Divestment of subsidiaries, non-controlling interests and operations -22 - Investments in other shares and securities - -7 13 Investments in intangible assets -106 -77 14 Investments in property, plant and equipment -424 -452 Sale of property, plant and equipment 37 79 Investments in associates -68 -2

CASH Flow FRom INvESTING ACTIvITIES -1,187 -1,014

Other movements relating to shareholders -7 -3 29 Movements relating to non-controlling interests -37 -110 Interest-bearing debt raised 968 527 Repayment of and change in interest-bearing debt -664 -252

CASH FlowS FRom FINANCING ACTIvITIES 260 162

Change in cash and cash equivalents -17 4 Cash and cash equivalents at beginning of year 974 963 Foreign exchange differences relating to cash and cash equivalents -52 7

18 CASH AND CASH EqUIvAlENTS AT YEAR-END 905 974



Income statement | Statement of comprehensive income | cash flow stateMent | Balance sheet | Equity statement | Notescon cash flow


Balance sheet as at 31 December


Assets Goodwill 9,971 9,554 Intangible assets from acquisitions 2,261 2,634 Other intangible assets 204 160

13 ToTAl INTANGIBlE ASSETS 12,436 12,348

Land and buildings 728 719 Leasehold improvements 61 58 Fixtures and fittings, tools and equipment 1,099 1,007

14 ToTAl PRoPERTY, PlANT AND EqUIPmENT 1,888 1,784

15 Investments in associates 86 17 Receivables from associates 52 - Other equity investments 14 6 21 Deferred tax assets 132 83

ToTAl FINANCIAl ASSETS 284 106

ToTAl NoN-CURRENT ASSETS 14,608 14,238

16 Inventories 83 76

17 Trade receivables 1,607 1,400 Receivables from associates 50 67 Other receivables 192 153 Prepayments 135 164 18 Securities 101 107 18 Cash 905 974

2,990 2,865

ToTAl CURRENT ASSETS 3,073 2,941

ToTAl ASSETS 17,681 17,179



Income statement | Statement of comprehensive income | Cash flow statement | Balance sheet | Equity statement | Notescon Balance




Equity and liabilities

Share capital 67 67 Hedging reserve -17 -62 Currency translation reserve -125 54 Retained earnings 5,468 5,453

EqUITY ATTRIBUTABlE To PARENT ComPANY 5,393 5,512

Non-controlling interests 62 77

19 ToTAl EqUITY 5,455 5,589

20 Other employee obligations 21 26 21 Deferred tax 723 874 22 Provisions for acquisitions of operations and non-controlling interests 891 702 23 Other provisions 40 12 24 Credit institutions 6,584 6,167

ToTAl NoN-CURRENT DEBT 8,259 7,781

24 Credit institutions 637 667 22 Provisions for acquisitions of operations and non-controlling interests 130 9 23 Other provisions 16 8 Trade payables 696 653 Income taxes 21 1 25 Other payables 931 1,024 26 Deferred income 1,536 1,447

ToTAl CURRENT DEBT 3,967 3,809

ToTAl EqUITY AND lIABIlITIES 17,681 17,179





Equity statement

Currency Non- Share Hedging translation Retained controlling 2013 DKK million capital reserve reserve earnings Total interests Equity

Equity at 1 january 2013 67 -62 54 5,453 5,512 77 5,589 Equity movements in 2013 Foreign exchange differences -220 -220 -1 -221 Value adjustment of currency hedging instruments 9 9 9 Value adjustment of interest hedging instruments 51 51 51 Actuarial adjustment of pension provisions 1 1 1 Adjustment for hyperinflation -2 -2 -2 Tax on other comprehensive income -15 43 28 28

Other comprehensive income - 45 -179 1 -133 -1 -134 Profit for the year 198 198 7 205

Total comprehensive income - 45 -179 199 65 6 71 Change in non-controlling interests' ownership share 11 11 11 Acquisitions of treasury shares -7 -7 -7 Adjustment of provision for acquisition of non-controlling interests relating to acquisitions after 1 January 2010 -188 -188 -188 Dividend -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

2012 DKK million Equity at 1 january 2012 67 -46 64 5,521 5,606 74 5,680 Equity movements in 2012 Foreign exchange differences -6 -6 1 -5 Value adjustment of currency hedging instruments 11 11 11 Value adjustment of interest hedging instruments -32 -32 -32 Actuarial adjustment of pension provisions 1 1 1 Adjustment for hyperinflation 1 1 1 Tax on other comprehensive income 5 -4 1 1

Other comprehensive income - -16 -10 2 -24 1 -23 Profit for the year 107 107 12 119

Total comprehensive income - -16 -10 109 83 13 96 Change in non-controlling interests' ownership share -86 -86 - -86 Acquisitions of treasury shares -3 -3 -3 Adjustment of provision for acquisition of non-controlling interests relating to acquisitions after 1 January 2010 -88 -88 -88 Dividend - -10 -10

Total transactions with owners - - - -177 -177 -10 -187

Total equity movements in 2012 - -16 -10 -68 -94 3 -91

ToTAl EqUITY AT 31 DECEmBER 2012 67 -62 54 5,453 5,512 77 5,589



Income statement | Statement of comprehensive income | Cash flow statement | Balance sheet | eQuity stateMent | Notescon eQuity



Business areasFalck's reporting segments are its four business areas, Emer-gency, Assistance, Healthcare and Safety Services, which sell various services.

EmergencyFalck is the largest international ambulance service provider in the world. Falck provides ambulance services to people in 25 countries on five continents in close collaboration with the authorities. Falck operates more than 2,200 ambulances with ambulance officers treating more than four million sick or injured people every year. In addition, Falck participates in providing a large number of other pre-hospital services us-ing doctor’s cars, paramedic cars and medical helicopters.

Falck is also the world’s largest international fire-fighting op-erator, with activities in 18 countries. In Denmark, Falck pro-vides fire-fighting and fire-prevention services to two-thirds of the country. In its other countries of operation, Falck is active in industrial fire services, fire training and fire services consulting for both public and industrial customers.

AssistanceFalck's Assistance services are concentrated in the four Nordic countries (Denmark, Finland, Norway and Sweden) and Estonia. The services provide people with the greatest possible safety and security, by providing advice, prevention, or fast and competent assistance when accidents happen. The services are often subscription-based and especially provide help to people with their cars and homes. As an ex-ample, Falck helps members whose car has broken down, or if they are involved in an accident: in most cases, Falck staff can repair the car on the spot. And Falck helps homeowners with everything from water in the basement to snow on the roof. Also, both private companies and public authorities can make use of Assistance services in situations involving build-ings, health, travel and more.

HealthcareFalck Healthcare is Denmark's largest private provider of healthcare services. Under this business area, Falck helps keep employees and citizens healthy. An important part of Falck Healthcare's efforts consists of preventing illness, stress and strain. The goal is to ensure that each individual enjoys the greatest possible degree of well-being at work and at home. In this way, Falck also helps employers reduce costs related to sickness. Moreover, the public sector saves on social security costs, and insurance and pension providers see lower payment of compensation related to occupational injuries and incapacity for work.

Safety ServicesFalck provides rescue and safety courses and other safety services in 19 countries on five continents. This happens at 36 training centres aimed at the offshore industry and the maritime sector, but the chemical industry, the wind energy industry, the aviation industry and the armed forces in Den-mark and Sweden also use Falck's services. In addition, Falck has seven land-based training centres in the Netherlands. At the centres, people are trained in how to prevent and fight fires, and they are taught how to react correctly – also under extreme conditions – if accidents do occur. Falck is the world's leading serviceprovider within this area with com-petencies developed on the basis of more than 100 years of experience in rescue services.

The accounting policies of all business areas are as described in the accounting policy note to the financial statements.

The performance of the business areas is evaluated on the basis of operating profit before costs and amortisation from business combinations and exceptional items. Revenue and other transactions within and between business areas are accounted for as if they had taken place with third parties in accordance with Falck's rules on transfer pricing and internal settlement.

Note

1 Segment information

Income statement | Statement of comprehensive income | Cash flow statement | Balance sheet | Equity statement | notes


management review | consolidated financial stateMents | Parent company financial statements | Statements | The companycon notes



Note DKK million

1 Segment information (continued)

Elimination and non- Safety allocated Business areas 2013 Emergency(2) Assistance Healthcare Services items Total KEY RATIOS EBITA margin (%)(1) 5.9 10.6 9.3 16.3 8.9

INComE STATEmENT Revenue 8,077 2,885 1,206 1,316 -950 12,534 operating profit before amortisation, depreciation, impairment and exceptional items 708 360 120 269 1,457 Amortisation, depreciation and impairment -512 -203 -38 -142 -895

operating profit before exceptional items 196 157 82 127 562

Analysed as follows: operating profit before costs and amortisation from business combinations and exceptional items 478 307 112 215 1,112 Amortisation of intangible assets and costs from business combinations -283 -150 -29 -88 -550 operating profit before exceptional items 195 157 83 127 562 Exceptional items - - - - -

Profit before financials 195 157 83 127 562

Financials etc. -313 -313

Profit before tax 249 249 Income taxes -44 -44


BAlANCE SHEET Total assets 11,343 3,076 1,169 2,047 46 17,681 Net investments in intangible assets, property, plant and equipment 300 100 11 82 - 493

(1) Operating profit before costs and amortisation from business combinations and exceptional items as a percentage of revenue. (2) The Emergency business includes operations in Venezuela, which is defined as a hyperinflationary economy. The revenue and

operating profit stated above therefore include adjustment for hyperinflation of DKK 10 million and DKK 4 million respectively.The effect on profit for the year was DKK 1 million.






Note DKK million


Elimination and non- Safety allocated Business areas 2012 Emergency(2) Assistance Healthcare Services items Total

KEY RATIOS EBITA margin (%)(1) 6.1 11.8 9.3 16.9 9.4

INComE STATEmENT Revenue 7,515 2,815 1,012 1,164 -1,002 11,504 operating profit before amortisation, depreciation, impairment and exceptional items 679 371 106 240 1,396 Amortisation, depreciation and impairment -500 -197 -40 -127 -864

operating profit before exceptional items 179 174 66 113 532

Analysed as follows: Operating profit before costs and amortisation from business combinations and exceptional items 459 333 94 197 1,083 Amortisation of intangible assets and costs from business combinations -280 -159 -28 -84 -551 operating profit before exceptional items 179 174 66 113 532 Exceptional items -13 -11 - - -24

Profit before financials 166 163 66 113 508

Financials etc. -312 -312

Profit before tax 196 196 Income taxes -77 -77


BAlANCE SHEET Total assets 10,650 3,269 1,075 2,128 57 17,179 Net investments in intangible assets, property, plant and equipment 260 92 16 82 - 450

(1) Operating profit before costs and amortisation from business combinations and exceptional items as a percentage of revenue. (2) The Emergency business includes operations in Venezuela, which is defined as a hyperinflationary economy. The revenue and

operating profit stated above therefore include adjustment for hyperinflation of DKK 6 million and DKK 1 million respectively. The effect on profit for the year was DKK 0 million.








Non-current Non-current assets assets excluding excluding deferred deferred Geographical breakdown Revenue tax assets Revenue tax assets Denmark 5,839 9,744 5,568 10,007 Nordic region 2,055 945 2,133 1,030 Europe 1,668 1,470 1,475 885 North America 1,872 1,172 1,354 1,123 Latin America 844 692 781 763 Rest of the world 256 453 193 347

Total 12,534 14,476 11,504 14,155

The breakdown of revenue is based on customers' country of residence. No single customer accounts for 10% or more of revenue. The breakdown of assets is based on physical location. The Nordic region comprises the following countries: Norway, Sweden and Finland. Europe comprises the following countries: Belgium, Estonia, France, Italy, the Netherlands, Poland, Romania, Slovakia, Spain, Switzerland, Turkey and United Kingdom. North America comprises the following countries: United States, Canada Latin America comprises the following countries: Brazil, Chile, Colombia, Ecuador, El Salvador, Mexico, Panama, Trinidad & Tobago, Uruguay and Venezuela. The rest of the world comprises the following countries: Azerbaijan, Angola, Australia, United Arab Emirates, India, Kazakhstan, China, Malaysia, Nigeria, Papua New Guinea, Russia, Singapore, Thailand, Vietnam and Qatar. Inter-segment transactions are made on an arm’s length basis.


2 Revenue

Services 12,438 11,418 Products 96 86

Total revenue 12,534 11,504

3 Other operating income

Gain on sales of assets 11 22 Other operating income 54 24

Total other operating income 65 46

Other operating income relates mainly to rent from premises.







4 Fees to auditors appointed at the annual general meeting

Statutory audit -8 -7 Tax advisory services -1 -1 Other services -14 -4

Total fees to Deloitte -23 -12

Tax advisory services -2 Other services -1

Total fees to KPmG(1) -3

(1) The fees for 2012 cover the period until the annual general meeting held on 26 April 2012.

5 Staff costs

Salaries and wages to employees -5,689 -5,221 Remuneration to the Executive Management Board -15 -13 Remuneration to the Board of Directors -5 -5

Total salaries and remuneration -5,709 -5,239

Defined-contribution pension plans -306 -301 Other social security costs -636 -561 Other staff costs -422 -385

Total other staff costs -1,364 -1,247

Total staff costs -7,073 -6,486

Permanent employees at 31 December 24,590 22,103

Other employees at 31 December 7,419 5,902

Number of employees (full-time equivalents) 22,441 20,567

Remuneration to the Executive Management Board includes both a fixed salary and variable remu-neration. The variable remuneration is fixed on the basis of an assessment of the Group's performance. The members of the Executive Management Board do not receive contributions to pension plans.

The service contracts of the members of the Executive Management Board include severance peri-ods which, in the case resignation by an executive, are 6 months and, in the case of termination by the company, are 12 months.

The Group contributes to pension plans which cover employees in various companies of the Group. The pension plans are typically defined-contribution plans. The Group has insignificant defined-be-nefit plans in Norway and the Netherlands. Actuarial adjustments of these plans amounted to DKK 1 million in 2013 (2012: DKK 1 million) of which the fair value of pension liabilities and pension assets at year-end 2013 amounted to DKK 24 million and DKK 25 million respectively. The net asset of DKK 1 million is recognised in other receivables.

warrant programme, Executive management Board Number of warrants at 1 January 4,443,120 4,443,120

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

Each warrant entitles the holder to subscribe for one share in Falck Holding A/S with a nominal value of DKK 1.00 on 30 December 2015 at DKK 125 per share. The warrants issued were acquired at market value with no conditions attached.







6 Amortisation, depreciation and impairment

Intangible assets from acquisitions -505 -515 Other intangible assets -47 -39 Buildings -34 -34 Leasehold improvements -13 -13 Fixtures and fittings, tools and equipment -296 -263

Total amortisation, depreciation and impairment -895 -864

7 Income after tax from associates

Income from associates, primary activities 4 - Income from associates, secondary activities -4 -

Income after tax from associates - -

8 Amortisation of intangible assets and costs from business combinations

Amortisation of intangible assets from business combinations -505 -515 Costs from business combinations -45 -36

Total amortisation of intangible assets and costs from business combinations -550 -551

9 Exceptional items

Costs relating to strategic projects - -24

Total exceptional items - -24

10 Financial income

Interest from cash 7 9

Interest from financial assets not measured at fair value through profit or loss 7 9 Foreign exchange gains 6 13 Interest from securities held to maturity 1 2 Other financial income 7 5

Total financial income 21 29







11 Financial expenses

Interest to credit institutions -269 -279 Interest element on discounted liabilities -5 -4 Other financial expenses -23 -31

Interest on financial liabilities not measured at fair value through profit or loss -297 -314 Foreign exchange losses -33 -27

Total financial expenses -330 -341

12 Income taxes

Current tax -241 -207 Change in deferred tax for the year 141 132 Reduction of Danish corporate tax rate from 25% to 22% until 2016 49 - Prior-year adjustments 7 -2

Total income taxes -44 -77 Tax on other comprehensive income 28 1 Total tax -16 -76

Income tax paid during the year -250 -218

Breakdown of tax rate: Total income taxes -44 -77

Tax base for current year 253 196

Effective tax rate 17.5% 39.3%

Danish tax rate 25.0% 25.0%Differences in foreign tax rates relative to Danish rate 1.6% 1.1%Non-deductible costs/(tax-exempt income) 4.6% 4.2%Non-capitalised tax losses for the period 4.3% 1.9%Utilisation of non-capitalised tax losses -0.3% -0.2%Payroll tax on profit for the year 4.6% 7.9%Reduction of Danish corporate tax rate -19.6% 0.0%Other adjustments including adjustments relating to prior years -2.7% -0.6%


Tax on other comprehensive income Tax on foreign exchange differences 43 -4 Tax on value adjustments relating to currency hedging instruments -2 -3 Tax on value adjustments of interest hedging instruments -13 8

Total tax on other comprehensive income 28 1

In the calculation of the reduction of the Danish corporate tax rate from 25% to 22% in 2016, the expected crystallisation in 2014 and 2015 at 24.5% and 23.5% respectively has been taken into account. Accordingly, deferred tax has been recognised at a weighted average.






13 Intangible assets

Intangible Other assets from intangible 2013 Goodwill acquisitions assets Total

Cost at 1 January 2013 9,554 3,400 209 13,163 Foreign exchange differences -188 -64 -16 -268 Additions on acquisitions 579 171 - 750 Additions - - 106 106 Revaluation of put options and earn-outs relating to acquisitions before 1 January 2010 17 - - 17 Disposals and reclassification - - -9 -9 Adjustments to acquisitions in 2012 9 - - 9

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

Amortisation and impairment at 1 January 2013 - -766 -49 -815 Foreign exchange differences - 25 4 29 Disposals and reclassification - - 6 6 Amortisation - -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

Intangible Other assets from intangible 2012 Goodwill acquisitions assets Total Cost at 1 January 2012 9,083 3,254 135 12,472 Foreign exchange differences 43 16 3 62 Additions on acquisitions 391 114 - 505 Additions - - 77 77 Revaluation of put options and earn-outs relating to acquisitions before 1 January 2010 33 - - 33 Disposals and reclassification - - -6 -6 Adjustments to acquisitions in 2011 4 16 - 20

Cost at 31 December 9,554 3,400 209 13,163

Amortisation and impairment at 1 January 2012 - -249 -14 -263 Foreign exchange differences - -2 -2 -4 Disposals and reclassification - - 6 6 Amortisation - -515 -39 -554

Amortisation and impairment at 31 December - -766 -49 -815

Carrying amount at 31 December 2012 9,554 2,634 160 12,348

Intangible assets from acquisitions primarily relate to customer contracts and other customer relations. The acquisitions were prima-rily made to achieve synergies with existing business areas, to further develop existing markets and to establish a presence on new markets. As a result, a large part of the consideration has been allocated to goodwill.

Other intangible assets are primarily related to software.

Except for goodwill and the Falck trademark in the amount of DKK 514 million, recognised in intangible assets from acquisitions, all intangible assets are deemed to have a limited economic life.






Note DKK million

13 Intangible assets (continued)

Goodwill impairment test Goodwill is tested for impairment at least once a year, and more frequently if there are indications of impairment. In impairment tests, the discounted values of the future net cash flows of each of the cash-generating units (value in use) are compared with their carrying amounts.

Goodwill

2013 2012

Emergency 5,046 4,582 Assistance 2,993 3,011 Healthcare 801 780 Safety Services 1,131 1,181

Total goodwill 9,971 9,554

For the above mentioned business areas, goodwill is tested for impairment in the relevant cash-generating units, defined as the four business areas, based on the following parameters and assumptions:

The future net cash flows are based on the consolidated budget for 2014 and the Group’s strategic plan for the period until 2018. Moreover, growth during the terminal period has been estimated at 3.5% in the Emergency business (2012: 3.5%) and 2.5% in the other business areas (2012: 2.5%).

The key parameters for the impairment test are performance in terms of revenue and the EBITA margin. Revenue and earnings are affected by developments in the number of ambulance entities, transport services, persons covered, course attendees, etc. As capi-tal tied up in net operating assets is generally low in the Group, this parameter does not have any material impact on the impairment test. The Emergency activities primarily consist of ambulance services, including transportation of patients, and of fire fighting for public- and private-sector customers, and they do not fluctuate materially from year to year. Emergency also includes training and consul-tancy activities for private-sector companies in several countries. The discount rate for Emergency has been set at 10% before tax (2012: 10%). The Assistance activities primarily consist of subscriptions and are therefore stable from year to year. The discount rate has been set at 10% before tax (2012: 10%).

The Healtcare activities primarily consist of subscriptions and long-term contracts and are therefore stable from year to year. The dis-count rate has been set at 10% before tax (2012: 10%). Substantial growth is expected in the Healthcare business in the years ahead. The Safety Services activities primarily consist of rescue and safety courses and other safety services and are to a certain extent af-fected by the activity level in the oil industry. The discount rate has consequently been set at 11% before tax (2012: 11%). The main assumptions in the strategic plan until 2018 are the expected organic growth and that off-shore exploration activities will pick up pace.

The impairment tests of goodwill did not result in any impairment.






Note DKK million

14 Property, plant and equipment

Fixtures, leasehold fittings, land and improve- tools and 2013 buildings ments equipment Total Cost at 1 January 2013 768 75 1,116 1,959 Foreign exchange differences -20 -5 -109 -134 Additions on acquisitions - 2 119 121 Additions 56 16 352 424 Disposals on divestments - - -30 -30 Disposals and reclassification -2 - -156 -158

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

Depreciation and impairment at 1 January 2013 -49 -17 -109 -175 Foreign exchange differences 7 3 79 89 Disposals and reclassification 2 - 133 135 Depreciation -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

of which assets under construction 48 - 35 83 of which assets held under finance leases 16 - 55 71

Fixtures, leasehold fittings, land and improve- tools and 2012 buildings ments equipment Total Cost at 1 January 2012 738 62 857 1,657 Foreign exchange differences -1 4 14 17 Additions on acquisitions 14 - 46 60 Additions 30 9 413 452 Disposals and reclassification -13 - -214 -227

Cost at 31 December 768 75 1,116 1,959

Depreciation and impairment at 1 January 2012 -16 -4 -12 -32 Foreign exchange differences - - -3 -3 Disposals and reclassification 1 - 169 170 Depreciation -34 -13 -263 -310

Depreciation and impairment at 31 December -49 -17 -109 -175

Carrying amount at 31 December 2012 719 58 1,007 1,784

of which assets under construction 23 - 66 89 of which assets held under finance leases 19 - 24 43







15 Investments in associates

Cost at 1 January 18 16 Foreign exchange differences 3 - Additions on acquisitions 68 2 Disposals and reclassification -2 -

Cost at 31 December 87 18

Share of valuation adjustments at 1 January -1 -1 Share of profit after tax - -

Impairment and share of valuation adjustments at 31 December -1 -1

Carrying amount at 31 December 86 17

See "Legal entities" for a list of companies.

Summary financial information about associates (100%): Revenue 215 57 Profit for the year 2 3 Total assets 527 350 Total liabilities 439 349

16 Inventories

Goods for resale 83 76

Total inventories 83 76

Write-downs during the period 2 2

17 Trade receivables

Total trade receivables 1,607 1,400

Write-downs at 1 January 182 35 Write-downs during the period 248 180 Realised write-downs during the period -174 -33

write-downs at 31 December 256 182

The credit quality of receivables that are not overdue and have not been written down is assessed based on the Group's internal credit assessment procedures. They are generally deemed to be of a high quality with a low risk of losses as they are typically minor subscription receivables from individual customers, and a significant part of the receivables are from public authorities and other major customers.

However, write-downs of receivables are affected by the fact that ambulance companies in the United States collect payment directly from the patient if the patient does not have health insurance or is covered by a public insurance scheme. This may be dif-ficult, especially in the event of emergency responses. Write-downs are generally recognised in other external costs. However, write-downs of receivables from private customers in the United States are recognised in revenue when it is assumed in advance that they cannot be collected.

Write-downs of receivables are based on individual assessments of customers' ability to pay. Moreover, general write-downs may be made based on experience and the age distribution of receivables from customers.







17 Trade receivables (continued)

Receivables overdue but not written down

Due within - 1 to 30 days 399 270 Due within - 31 to 90 days 209 174 Due within - more than 90 days 147 150

Total receivables overdue but not written down 755 594

18 Cash and cash equivalents

Cash 905 974 Securities 101 107

Total cash and cash equivalents 1,006 1,081

Breakdown of cash and cash equivalents

Cash 905 974 Securities with maturities of less than 3 months at the time of acquisition. - -

Cash and cash equivalents as per the cash flow statement 905 974

Securities subject to regulations on solvency requirements 101 107

Total cash and cash equivalents 1,006 1,081

DKK 101 million (2012: DKK 107 million) of the Group's cash and cash equivalents is held in a Swedish subsidiary which is subject to Swedish insurance regulations and which is therefore subject to solvency requirements.

19 Equity, treasury shares and dividends

Capital management The Group is generally not subject to any capital requirements other than usual statutory requirements.

The Group monitors and manages its capital structure with a view to ensuring that it can meet its financial agreements. No changes have been made to the Group's management of capital as compared with 2012.

The share capital is divided into 66,952,345 shares (2012: 66,952,345 shares) with a nominal value of DKK 1.00 each. The shares are fully paid up and are not divided into classes. The company was founded on 1 April 2011 as a private limited company (ApS) with a share capital of DKK 80,000. The company was converted into a public limited company (A/S) on 5 July 2011, and on that occasion, its share capital was increased by DKK 67 million.

Nominal value Number of shares DKK (thousands) % of share capital Treasury shares 2013 2012 2013 2012 2013 2012

Treasury shares at 1 January 36,120 - 36 - 0.05 - Additions 78,941 36,120 79 36 0.12 0.05

Treasury shares at 31 December 115,061 36,120 115 36 0.17 0.05

Dividend A dividend of DKK 0 million is proposed (2012: DKK 0 million).







20 Other employee obligations

Employee obligations at 1 January 26 29 Paid out during the period -5 -3

Employee obligations at 31 December 21 26

The employee obligations primarily concern a special severance scheme for executives employed before 1991. The scheme is closed to new members.

21 Deferred tax

Deferred tax provisions at 1 January 791 876 Foreign exchange differences -5 1 Addition on acquisitions 55 29 Change in deferred tax for the year -194 -131 Reduction of Danish corporate tax rate -49 - Change in deferred tax for prior years -7 16

Deferred tax provisions at 31 December 591 791

Deferred tax assets -132 -83 Deferred tax provision 723 874


Breakdown of deferred tax: Intangible assets 584 688 Property, plant and equipment 65 81 Current assets 6 3 Non-current debt and provisions -2 7 Current debt 6 38 Tax losses carried forward -61 -48 Foreign exchange differences recognised in equity -7 22


The tax losses carried forward and not included in deferred tax assets amount to DKK 37 million (2012: DKK 22 million). Deferred tax assets are recognised on the basis of expected future earnings. The Group does not have a material liability for withholding taxes in connection with potential dividend payments from subsidiaries.







22 Provisions for acquisitions of operations and non-controlling interests

Provisions for acquisitions of non-controlling interests 898 655 Outstanding consideration and earn-outs 123 56

Provisions at 31 December 1,021 711

Non-current provisions: Provisions for acquisitions of non-controlling interests 817 653 Outstanding consideration and earn-outs 74 49

Total 891 702

Current provisions:Provisions for acquisitions of non-controlling interests 81 2 Outstanding consideration and earn-outs 49 7

Total 130 9

Total provisions 1,021 711

Provisions for acquisitions of non-controlling interests Provisions at 1 January 655 516 Foreign exchange differences -35 -4 Additions on acquisitions 101 42 Disposals on acquisitions of non-controlling interests -7 -9 Interest element on discounted liabilities 5 4 Dividends paid and other adjustments -26 -15 Adjustments recognised in goodwill relating to business combinations before 1 January 2010 17 33 Adjustments and interest recognised in equity relating to business combinations after 1 January 2010 188 88

Provisions for acquisitions of non-controlling interests at 31 December 898 655

Classification of provision for acquisitions of non-controlling interests by expected maturity: Within 1 year 81 2 Between 1 and 5 years 785 508 More than 5 years 32 145

Provisions for acquisitions of non-controlling interests at 31 December 898 655

outstanding consideration and earn-outs Provisions at 1 January 56 39 Additions on acquisitions 71 39 Reassessment of previously recognised earn-outs 2 -5 Payments during the year -6 -17

outstanding consideration and earn-outs at 31 December 123 56

Classification of outstanding consideration and earn-outs by expected maturity: Within 1 year 49 7 Between 1 and 5 years 74 49 More than 5 years - -

outstanding consideration and earn-outs at 31 December 123 56






Note DKK million

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

In connection with Falck assuming an obligation to acquire non-controlling interests, a concurrent right was obtained for Falck to acquire the same non-controlling interests in the agreed period. The consideration for obligations and rights to acquire non-controlling interests is determined on the basis of profit before exercise multiplied by an already agreed multiple typically less net debt in the relevant companies. On recognition in the balance sheet, this value is made up at fair value on the basis of earnings and net debt at the time when the con-controlling interests are expected to exercise their right to sell their shares to Falck. The calculated fair value assumes an increase in earnings and a decrease in net debt in the relevant companies as compared with the value recognised in the financial statements. 2013 2012

23 Other provisions

Provisions at 1 January 20 23 Additions on acquisitions 6 3 Provisions added during the year 48 - Provisions used during the year -18 -6

other provisions at 31 December 56 20

Classification of provisions by expected maturity: Within 1 year 16 8 Between 1 and 5 years 39 1 More than 5 years 1 11

other provisions at 31 December 56 20

Other provisions concern pending litigation, obligations based on actuarial calculations relating to occupational injuries in the United States and the Group's obligation to clean up and demolish facilities on leased land.

24 Credit institutions

Non-current liabilities: Assets held under finance leases 75 36 Long-term loans 6,509 6,131

Total 6,584 6,167

Assets held under finance leases 25 20 Short-term loans 612 647

Total 637 667

Total credit institutions 7,221 6,834

Of total long-term loans, mortgage loans represent DKK 353 million (2012: DKK 358 million)

Breakdown by maturity: Due within 1 year 637 667 Due between 1 and 5 years 6,572 2,224 Due after 5 years 12 3,943

Total 7,221 6,834







24 Credit institutions (continued)

Breakdown by currency: DKK 5,080 4,715 EUR 1,571 1,509 NOK 14 20 USD 515 557 Other 41 33

Total 7,221 6,834

Interest reset periods: Within 3 months 6,768 6,476 After 12 months 453 358

Total 7,221 6,834

The statements set out above do not include liabilities relating to interest for subsequent financial periods. See note 31 for a de-scription of the Group's risks and cash resources. The effective interest rate has been determined at 4.0% (2012: 4.3%). For debt with an interest reset period within 3 months, regular assessments are made of how long the interest period should be.As at the balance sheet date, the interest rate of the primary part of the debt in DKK was fixed for one month and averaged approxi-mately 2.8% (2012: 3.3%). As at the balance sheet date, the interest rate of the primary part of the debt in EUR was fixed for one month and averaged for the year approximately 2.9% (2012: 3.3%). As at the balance sheet date, the interest rate of the primary part of the debt in USD was fixed for one month and averaged for the year approximately 2.9% (2012: 3.2%). For debt with an interest reset period beyond 12 months (in DKK), the effective interest rate is currently approximately 4.5% (2012: 4.5%).

The market value of debt with an interest reset period within 3 months is approximately DKK 6,819 million (2012: DKK 6,475 million) and the market value of debt with an interest reset period beyond 12 months is approximately DKK 479 million (2012: DKK 396 million). DKKm 54 million (2012: DKK 48 million) of capitalised loan costs has been deducted from the carrying amount of debt. The Group is funded by a general syndicated loan with loan terms that include covenants requiring that certain financial performan-ce indicators are met. All loan terms were honoured in 2013. Assets held under finance leases Assets held under finance leases comprise leased vehicles and buildings. The lease contracts do not include any contingent lease payments. Breakdown of liabilities concerning assets held under finance leases:

Present value minimum of lease lease 2013 payments Interest payments

Due within 1 year 25 4 29 Due between 1 and 5 years 62 7 69 Due after 5 years 12 4 16

Total at 31 December 2013 99 15 114

Present value minimum of lease lease 2012 payments Interest payments

Due within 1 year 20 2 22 Due between 1 and 5 years 28 4 32 Due after 5 years 8 5 13

Total at 31 December 2012 56 11 67







25 Other payables

Holiday pay, wages, etc. 646 671 Employee income taxes, etc. 129 97 VAT 104 97 Accrued interest - 2 Other 52 157

Total other payables 931 1,024

26 Deferred income

Subscription commitments 1,191 1,121 Other deferred income 345 326

Total deferred income 1,536 1,447

27 Net financials, cash flow

Financial income and expenses -309 -312 Of which unrealised gains and losses 14 -3 Interest element on discounted liabilities 5 4 Change in amortised borrowing costs 11 10 Change in interest payable -2 1

Net financials, cash flow -281 -300

28 Investments and divestments in subsidiaries, non-controlling interests and operations

Investments in subsidiaries, non-controlling interests and operations GARD Other Total 2013 2012

AssetsIntangible assets 84 87 171 114 Property, plant and equipment 76 45 121 60 Financial assets 3 - 3 - Cash - 32 32 25 Other current assets 63 59 122 82

Equity and liabilities Interest-bearing debt -63 -42 -105 -46 Current debt, provisions, etc. -40 -31 -71 -58 Deferred tax -25 -31 -56 -42 Non-controlling interests - - - -

Net assets acquired 98 119 217 135 Goodwill 398 181 579 391

Purchase price 496 300 796 526 Provisions for acquisitions of non-controlling interests, additions during the year -34 -67 -101 -42

Purchase price excluding provisions for acquisitions of non-controlling interests 462 233 695 484 Adjustment for cash and cash equivalents acquired - -32 -32 -25 Outstanding consideration -45 -34 -79 -39 Consideration relating to prior-year acquisitions - 9 9 17

Cash consideration for acquisitions 417 176 593 437

Expensed costs from business combinations 45 36






Note DKK million

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

Other than customer contracts and customer relations with a total value of DKK 171 million (2012: DKK 114 million), no assets or liabilities have been identified which were not recognised in the companies acquired on the date of acquisition. valuation of intangible assets In connection with acquisitions, an assessment is made of the value of the customer agreements, framework agreements and custo-mer portfolios taken over. The valuation thereof is based on the ”Multi Period Excess Earnings Method (MEEM-method)” in which the value is calculated on the basis of an expected future cash flow. The principal assumptions are expected lives of the existing agreements 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 fair value of DKK 99 million (2012: DKK 46 million). The contractual gross receivable is DKK 126 million (2012: DKK 50 million), of which DKK 27million (2012: DKK 4 million) was deemed to be unrecoverable as of the date of takeover. Non-controlling interests in acquisitions in 2013 are recognised at fair value, including the fair value of goodwill related to the non-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 2013 activity Country acquisition price paid in acquired

Verihealth Emergency USA April 81 Cash 100%Skandinavisk Hälsovärd Group Healthcare Sweden August 43 Cash 100%GARD Emergency Germany September 462 Cash 100%Hostile Environment Services Emergency Australia October 79 Cash 55%Other 30 Cash

Total acquisitions in 2013 695

Profit of acquired companies after date of acquisition 13 Full-year revenue including acquisitions 13,080 Full-year profit including acquisitions 240

verihealth is an American ambulance company whose primary activity is patient transportation. The acquisition strengthened Falck's position as the third-largest ambulance company in the United States. The market in California is characterised by strong growth, driven by population growth as well as demographic developments towards a greater proportion of elderly people. Part of the consi-deration has been allocated to existing customer contracts, while the rest has been allocated to goodwill, relating to the potential of continuing growth in the US market through expansion of the strategic platform, efficiency improvements by integrating operations with other activities in California and by exploiting the competencies, knowledge and relations of key persons. Skandinavisk Hälsovård Group is one of the leading Swedish providers of physician and nurse temps. The company has customers in the public as well as the private healthcare sector. The acquisition of Skandinavisk Hälsovård has given Falck a position as the largest group of providers of healthcare staffing in Scandinavia. Part of the purchase price has been allocated to existing customer contracts, while the rest has been allocated to goodwill. Goodwill relates to the expansion of the strategic platform for Falck's healthcare activities and exploitation of synergies and the future growth potential. GARD is the largest private ambulance services provider in Germany. The company has activities in patient transportation, primarily in and around Hamburg, and activities in other parts of northern and eastern Germany. The acquisition complements Falck's existing activities in Germany and is considered to be strategically important for generating additional growth in Germany, the largest market in Europe. Part of the purchase price has been allocated to existing customer relations, while the rest has been allocated to goodwill, reflecting the establishment of a strong strategic platform with growth potential in terms of both revenue and earnings and the contribution of key persons with knowledge of the German market. Hostile Environment Services is an Australian provider of ambulance services, fire fighting, medical clinics and safety training for the mining, oil and gas industries in remote areas of Australia and Papua New Guinea. Part of the consideration has been allocated to existing customer relations and the rest to goodwill, which relates to the strategic access to the Australian market and the growth potential that exists in the mining industry in relevant geographies and in the market for emergency services in Australia.






Note DKK million

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

Percentage Considera- of voting main month of Purchase tion rights Acquisitions 2012 activity Country acquisition price paid in acquired Grupo VL Emergency Spain Feb. 113 Cash 75%American Ambulance Emergency USA Sep. 243 Cash 96%Occupational Safety Training Safety Services USA Dec. 61 Cash 100%Other 67 Cash

Total acquisitions in 2012 484

Profit of acquired companies after date of acquisition 13 Full-year revenue including acquisitions 11,825 Full-year profit including acquisitions 140

DKK million 2013 2012 Divestments of subsidiaries, non-controlling interests and operations

Assets Property, plant and equipment 30 - Cash and cash equivalents 30 - Other current assets 4 - Equity and liabilities Interest-bearing debt -33 - Current liabilities -1 -

Net assets divested 30 - Reclassified to associates -14 -

Sales price 16 - Adjustment for cash and cash equivalents transferred -30 - Sales price receivable -8 -

Cash flow from divestment of subsidiaries -22 -

Divestments in 2013 comprised Falck Medical Vladivostok LLC in Russia, Falck CARE4 A/S and Falck Air Ambulance A/S in Denmark

29 Movements relating to non-controlling interests

Dividend to non-controlling interests recognised in equity -21 -10 Dividend to non-controlling interests recognised in provisions for acquisitions of non-controlling interests -26 -24Divestment of non-controlling interests and capital contributions from non-controlling interests 15 51 Acquisition of non-controlling interests -5 -127

Total movements relating to non-controlling interests -37 -110







30 Contingent liabilities, contractual obligations and collateral security

Contingent liabilities

warranty and guarantee commitments 7 7

The Falck Group is a party to certain litigation and disputes. Management believes that rulings in this respect will not have a material impact on the Group’s financial position. The Group has issued performance bonds to a certain extent in connection with a number of contracts, including performance bonds for a total of DKK 317 million (2012: DKK 297 million). As part of the Group's activities, usual supplier agreements have been entered into. Usual representations and warranties are made in connection with the divestment of companies and operations. There are currently no outstanding claims which are not sufficiently recognised in the balance sheet. joint taxationFalck Holding A/S is taxed jointly with Lundbeckfond Invest A/S in Denmark. From and including 1 July 2012, the company is therefore partly jointly and severally liable for any obligations to withhold tax on interest, royalties and dividends for the jointly taxed companies. However, the secondary liability will, as a maximum, amount to the proportion of the company's capital held directly or indirectly by the ultimate parent company. Contractual obligations Minimum lease payments for operating lease commitments: Due within 1 year 306 296 Due between 1 and 5 years 635 668 Due after 5 years 841 901

operating lease commitments at 31 December 1,782 1,865

Net present value of lease commitments 1,436 1,495

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 341 285

The operating lease commitments concern leases for vehicles and buildings. The lease term for cars is typically between 4 and 9 years. The lease term for buildings is typically up to 20 years.

None of the leases include material contingent lease payments, whereas Falck has a right of first refusal to buy a number of buildings at a preset value. At the end of the year, Falck had not notified any owners that it wanted to exercise such a right of first refusal in 2014 (2013: DKK 0 million). Collateral security The shares in the subsidiaries Falck A/S and Falck Danmark A/S have been provided as collateral for the Group's debt. Carrying amount of the Group’s properties that have been mortgaged in security of loans. 489 490 Carrying amount of the Group’s operating equipment that has been mortgaged in security of loans. 31 44 Bearer mortgages issued and used as collateral for credits 354 359 Unused bearer mortgages 14 15

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






Note DKK million

31 Financial instruments

Financial risks As a consequence of its operations, investments and financing, the Group is exposed to a number of financial risks, including market risk (foreign exchange and interest rate risk), credit risk and liquidity risk. Group policy is to not actively speculate in financial risks. Accordingly, the Group’s financial management exclusively involves the ma-nagement and mitigation of financial risks that arise as a direct consequence of the Group’s operations, investments and financing. The Group's risk exposure is subject to continuous changes as a result of increased debt, inflation risk in emerging markets, foreign exchange 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 2012.

Foreign exchange risk The Group’s foreign subsidiaries are not severely exposed to exchange rate fluctuations, as both revenue and most costs of the individual subsidiaries are denominated in the same currencies. The main exchange rate exposure faced by the Group relates to the translation into Danish kroner of the financial results and equity of subsidiaries.

The Group regularly assesses its foreign exchange risk in order to determine whether its exposure should be hedged by same-cur-rency loans or forward exchange contracts. The forward exchange contracts stated below were entered into to reduce the Group’s foreign exchange risks in respect of the translation risk for investments in subsidiaries. See the section below regarding hedging.

47% of the Group’s revenue is denominated in Danish kroner (DKK) (2012: 48%). Other currencies that account for more than 5% of revenue or earnings are US dollars (USD), Norwegian kroner (NOK), euros (EUR) and Swedish kroner (SEK).

The income statement is affected to a minor extent by changes in exchange rates, as the profit of foreign subsidiaries is translated into Danish kroner using average exchange rates. 2013 Hypothetical impact on the profit for the year and the Group's equity from reasonably Probable change Hypothetical impact on Hypothetical impact probable changes in exchange rates: in exchange rate (1) profit for the year (1) on equity (1)

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

2012

Hypothetical impact on the profit for the year and the Group's equity from reasonably Probable change Hypothetical impact on Hypothetical impact probable changes in exchange rates: in exchange rate (1) profit for the year (1) on equity (1)

EUR/DKK 1% 15 15 USD/DKK 10% - 51 PLN/DKK 10% - 9 NOK/DKK 5% - 18 GBP/DKK 5% - 9 SEK/DKK 5% - 16

(1) An increase in the exchange rate would lead to and increase in profit for the year and an impact on equity.






Note DKK million

31 Financial instruments (continued)

Assumptions regarding sensitivity information The sensitivities related to financial instruments have been determined on the basis of the financial instruments recognised at 31 December 2013. The sensitivities stated have been determined on the basis of an assumption that sales, price level and interest rate level are unchanged. The foreign exchange risks stated above do not include the translation risk of translating the profit and equity of foreign subsidiaries into Danish kroner.

Interest rate riskThe Group’s interest rate risk is mainly affected by the Group’s overall financing. Based on the current market situation, the Group has extended the interest rate swaps that expire in 2014 until 2016 and 2017, so that 70%-80% of the expected financing is at fixed rates of interest. The rest of the overall financing is based on short-term interest rates. The interest rate exposure is hedged by interest rate swaps during the hedging period to the effect that interest rates on the part of the debt that is denominated in DKK cannot exceed 1.18% excluding the applicable interest rate rate margin, that interest rates on the part of the debt that is denomi-nated in EUR cannot exceed 1.03% excluding the applicable interest rate margin, and that interest rates on the part of the debt that is denominated in USD cannot exceed 1.14% excluding the applicable interest rate margin. The remaining part of the syndicated financing is based on short-term interest rates. The Group is therefore only to a minor extent sensitive to fluctuations in market interest rates, and a fluctuation by 1% would change the interest expense for the year by DKK 26 million (2012: DKK 23 million), as a large part of the interest rate risk is hedged by interest rate swaps. Without these hedges, a fluctuation by 1% would change the Group's interest expense by DKK 68 million (2012: DKK 61 million) based on the level of debt at year-end 2013. Credit riskThe Group’s credit risk mainly concerns primary financial assets. Credit risk related to financial assets equals the values recognised in the balance sheet.

The Group is not exposed to significant risks concerning individual customers or business partners. When entering into significant contracts, the Group makes a credit assessment of the customer in order to reduce the potential credit risk. The Group’s credit exposure to large customers is generally considered low as the Group’s large customers are mainly public authorities.. However, write-downs of receivables are generally highest in the ambulance companies in the United States which have to collect payment directly from the patient if the patient does not have health insurance or is covered by 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, and general and individual write-downs are made for anticipated bad debts.

liquidity risk The Group’s liquidity risk primarily concerns its ability to meet its obligations to pay its employees and creditors and to service its debts. The Group continuously monitors its free cash flow in order to assess its liquidity risks. Some of the Group's loans, including the debt of Falck Holding A/S, is subject to certain loan covenants, and the Group continuously monitors whether the covenants are observed.

See note 24 for a breakdown of maturities of liabilities to credit institutions. In addition to its recognised liabilities, the Group also has the option to draw on short-term credits.

At year-end 2013, the Group's unused credit facilities were DKK 849 million (2012: DKK 381 million).

With the addition of available cash and cash equivalents of DKK 1,006 million (2012: DKK 974 million), total cash resources were in the region of DKK 1,855 million (2012: DKK 1,355 million).

Derivative financial instruments recognised in the balance sheet are stated at a value equivalent to the market value.






Note DKK million


maturity analysis of financial assets and liabilitiesAssumptions applied in the maturity analysisThe maturity analysis is based on all undiscounted cash flows, including estimated interest payments. Interest payments are estimated based on current market conditions.

The undiscounted cash flows from derivative financial instruments are presented gross, unless the parties have a contractual right/obligation to settle net.

Due Due Contrac- within between Due tual Total one 1 and 5 after 5 cash carrying market Contractual cash flows including interest 2013 year years years flows amount value

Financial assets:Trade receivables 1,607 - - 1,607 1,607 1,607 Receivables from associates 50 - - 50 50 50 Other receivables 175 - - 175 175 175 Cash 905 - - 905 905 905

loans and receivables 2,737 - - 2,737 2,737 2,737

Other equity investments - 5 9 14 14 14 Securities subject to regulations on solvency requirements 101 - - 101 101 101

Held-to-maturity investments 101 5 9 115 115 115

Derivative financial instruments to hedgefuture cash flows - 7 - 7 7 7 Derivative financial instruments to hedge net investments in foreign companies 10 - - 10 10 10

Financial assets used as hedging instruments 10 7 - 17 17 17

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

Derivative financial instruments to hedge future cash flows - 29 - 29 29 29 Derivative financial instruments to hedge net investments in foreign companies 8 - - 8 8 8


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






Note DKK million


Contractual cash flows Due Due Contrac- within between Due tual Total one 1 and 5 after 5 cash carrying market Contractual cash flows including interest 2012 year years years flows amount value

Financial assets: Trade receivables 1,400 - - 1,400 1,400 1,400 Receivables from associates 67 - - 67 67 67 Other receivables 153 - - 153 153 153 Cash 974 - - 974 974 974

loans and receivables 2,594 - - 2,594 2,594 2,594

Other equity investments - 4 2 6 6 6 Securities subject to regulations on solvency requirements 107 - - 107 107 107

Held-to-maturity investments 107 4 2 113 113 113

Derivative financial instruments to hedge net investments in foreign companies 1 - - 1 1 1

Financial assets used as hedging instruments 1 - - 1 1 1

Total financial assets 2,702 4 2 2,708 2,708 2,708

Financial liabilities: Credit institutions 828 2,652 4,299 7,779 6,834 6,888 Provisions for acquisitions of operations and non-controlling interests 2 819 187 1,008 711 711 Trade payables 653 - - 653 653 653 Other payables 943 - - 943 943 943

Financial liabilities measured at amortised cost 2,426 3,471 4,486 10,383 9,141 9,195

Derivative financial instruments to hedge future cash flows - 73 - 73 73 73 Derivative financial instruments to hedge net investments in foreign companies 8 - - 8 8 8


Total financial liabilities 2,434 3,544 4,486 10,464 9,222 9,276






Note DKK million


Hedging and derivative financial instrumentsThe Group uses forward exchange contracts to hedge its risks related to exchange rates.

The fair value of the effective part of the outstanding foreign exchange contracts as at 31 December used as hedginginstruments and qualifying for hedge accounting in respect of future transactions is recognised directly in equitythrough other comprehensive income until the hedged transactions are recognised in the income statement.

Forward exchange contracts are used to hedge investments in subsidiaries with a functional currency other than Danish kroner.

2013 2012 Contract market Contract market Foreign currency sold/(bought) on forward contracts: value value value value

NOK (expires in 2014) 336 7 370 -3 GBP (expires in 2014) 226 -8 176 1 PLN (no longer hedged as of 31 December) - - 92 -2 SEK (expires in 2014) 325 3 324 -3

Total 887 2 962 -7

Of which recognised in income statement - -

For future recognition 2 2 -7

The market value is recognised in other receivables/other payables.

All contracts expire in 2014 and as they hedge net investments abroad, they do not affect the income statement. 2013 2012

Hedged market Hedged market Interest rate swaps: value value value value

DKK (fixed rate 1.40%) expires in August 2014 2,300 -19 2,300 -47 DKK (fixed rate 0.56%) from August 2014 to June 2016 425 - DKK (fixed rate 0.56%) from August 2014 to June 2016 300 - DKK (fixed rate 0.89%) from August 2014 to September 2017 815 1 DKK (fixed rate 0.88%) from August 2014 to September 2017 900 2 DKK (fixed rate 0.88%) from August 2014 to September 2017 300 - USD (fixed rate 0.55%) expires in August 2014 406 -1 424 -2 USD (fixed rate 1.14%) from August 2014 to September 2017 390 2 EUR (fixed rate 1.17%) expires in August 2014 1,492 -9 1,492 -24 EUR (fixed rate 0.67%) from August 2014 to September 2017 1,201 2

Total -22 -73

Of which recognised in income statement - -

For future recognition -22 -73

The market value is recognised in other payables.

All interest rate swaps are recognised in the income statement until expiry.






Note DKK million


methods and assumptions for the determination of fair valuesThe portfolio of listed securities is valued at officially quoted prices or price quotes.

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.

Forward exchange contracts and interest rate swaps are valued using generally accepted valuation techniques based on relevant observable swap curves and exchange rates.

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 assetsOther equity investments - - 14 14 Securities 101 - - 101 Derivative financial instruments to hedge future cash flows - 7 - 7 Derivative financial instruments to hedge net investments in foreign companies - 10 - 10

Total financial assets 101 17 14 132

Financial liabilitiesDerivative financial instruments to hedge future cash flows - 29 - 29 Derivative financial instruments to hedge net investments in foreign companies - 8 - 8

Total financial liabilities - 37 - 37

2012

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 assetsOther equity investments - - 6 6 Securities 107 - - 107 Derivative financial instruments to hedge net investments in foreign companies - 1 - 1

Total financial assets 107 1 6 114

Financial liabilitiesDerivative financial instruments to hedgefuture cash flows - 73 - 73 Derivative financial instruments to hedge net investments in foreign companies - 8 - 8








32 Related parties

Falck Holding A/S is subject to controlling influence by Lundbeckfond Invest A/S, Scherfigsvej 7, DK-2100 Copenhagen Ø, Denmark, which holds 57.4% of the share capital.

Falck Holding A/S has registered the following shareholders who hold 5% or more of the share capital Lundbeckfond Invest A/S, Copenhagen 57.4% 57.4%KIRKBI Invest A/S, Billund 26.5% 20.0%Liberatio A/S, Copenhagen (owned by the members of the Executive Management Board) 10.3% 10.3% During the period, there were no transactions with these related parties other than those describedelsewhere in this annual report. management Related parties in Falck Holding A/S with significant influence include the Group's Executive Ma-nagement Board and Board of Directors and their close relatives. Related parties also comprise companies in which these individuals have material interests.

Trading with Management was as follows:

Warrant programme, Executive Management Board, as described in note 5 - - The Group had no transactions with the members of the Executive Management Board, Board of Directors or other persons with significant influence other than the remuneration paid to the Management, stated in note 5.

Associates The related parties of Falck Holding A/S also include associates in which the company has significant influence. See note 15 and "Legal entities" for an overview of associates. Trading with associates was as follows: Sale of property, plant and equipment - 5 Purchase of services -10 -15 Sale of services - - Royalties 1 - Lease costs -25 -20

Receivables from associates appear from the balance sheet, and interest thereon for the period amounted to DKK 1 million.

Transactions with subsidiaries have been eliminated in the consolidated financial statements in accordance with the accounting policies.






Note DKK million

33 Events after the balance sheet date

No events have occurred after the balance sheet date that have a material impact on the financial position of the Falck Group.






The calculation of the carrying amounts of certain assets and liabilities relies on judgments, estimates and assump-tions about future events.

The estimates and assumptions applied are based on histori-cal experience and other factors that Management consid-ers reasonable under the circumstances, but which are inherently uncertain and unpredictable. Such assumptions may be incomplete or inaccurate, and unexpected events or circumstances may occur. In addition, the Group is subject to risks and uncertainties that may cause actual outcomes to deviate from such estimates.

Estimates material to the financial reporting are made in the calculation of, i.a. depreciation, amortisation and impair-ment losses, provisions, the determination of fair values, as well as contingent liabilities and assets.

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 testIn the annual goodwill impairment test or in case of any indication of an impairment requirement, an assessment is made of how the parts of the Group (cash-generating units) to which the goodwill relates will be able to generate suf-ficient cash flows in future to support the value of goodwill and other net assets in the relevant part of the Group.

As a result of the nature of the company’s business, ex-pected cash flows must be estimated over a period of a number of years, which inherently produces some degree of uncertainty. This uncertainty is reflected in the discount rate applied.

The impairment test of goodwill and the associated particu-larly sensitive factors and sensitivity analyses are described in note 13 to the consolidated financial statements.

Provisions for acquisition of non-controlling interestsIn the determination of the fair value of issued put options under which the Group assumes an obligation to buy shares in subsidiaries held by non-controlling shareholders, Man-agement makes certain estimates, including of the future fi-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 value calculation, which is therefore subject to uncertainty.

Purchase price allocation in business combinationsIn connection with allocation of purchase price in business combinations, calculations are made of fair value of acquired assets and liabilities. As this determination is based on ex-pected future cash flows related to the assets and liabilities acquired, the realisation of such cash flows as anticipated is subject to an inherent uncertainty. In accordance with IFRS 3, the purchase price allocations in business combinations may be adjusted for up to 12 months from the date of ac-quisition.

Note

34 Accounting estimates and judgments






The annual report for the year ended 31 December 2013 includes both the consolidated financial statements of Falck Holding A/S and its subsidiaries (the Group) and separate financial statements of the parent company.

The annual report of Falck Holding A/S is presented in ac-cordance with International Financial Reporting Standards (IFRS) as adopted by the EU and additional Danish disclosure requirements for annual reports for accounting class C large.

The Board of Directors and the Executive Management Board considered and approved the annual report for 2013 of Falck Holding A/S on 20 March 2014. The annual report will be submitted to the shareholders of Falck Holding A/S for adoption at the annual general meeting to be held on 30 April 2014.

The annual report has been prepared under the historical cost convention, except that the following assets and liabili-ties are measured at fair value: derivative financial instru-ments and financial instruments at fair value

The annual report is presented in Danish kroner (DKK) rounded to the nearest million.

NEw FINANCIAl REPoRTING STANDARDSEffective 1 January 2013, Falck Holding A/S implemented the following:

• Amendments to IAS 1 – Presentation of items of other comprehensive income

• IFRS 13 – Fair value measurement• IAS 19 Employee benefits (amended 2011)• Annual improvements to 2009-2011 cycle• Amendments to IFRS 7 – Offsetting financial assets and

financial liabilities

The implementation of IAS 19 results in a change in the rec-ognition of the return on pension assets in the income state-ment, whereas it does not affect the balance sheet, equity or cash flows.

In future, return on pension assets will be recognised as a net amount regardless of the composition of the assets. This accounting policy change resulted neither in a reduction nor an increase in profit in 2013.

The implementation of IAS 1 has the effect that, in future, comprehensive income will be broken up into line items that can and cannot, respectively, be reclassified to profit or loss.

No other changes have affected recognition and measure-ment and the presentation and classification for 2013, nor are they expected to affect Falck Holding A/S going forward.

PRoSPECTIvE ImPlEmENTATIoN oF NEw oR UPDATED IFRS STANDARDSFalck Holding A/S prospectively implemented the amend-ment to IAS 36, Impairment of assets, in 2013. The change eliminates an unintended disclosure requirement in respect of recoverable amount per cash-generating unit.

FUTURE IFRS AmENDmENTSStandards and additions issued by the IASB which come into force after 31 December 2013, standards and additions not yet adopted by the EU, or standards for which the EU has postponed the effective date have not been implemented, include:

• IFRS 10 Consolidated financial statements• IFRS 11 Joint Arrangements• IFRS 12 Disclosures of interests in other entities• IAS 27 Separate financial statements• IAS 28 Investments in associates and joint ventures• Amendment to IAS 32 Financial Instruments: Presentation• Amendment to IAS 39 Financial instruments

The implementation of these standards will result in addi-tional note specifications and reclassifications but is not ex-pected to significantly affect recognition and measurement.

The accounting policies set out below have been consistent-ly applied to the financial year and the comparative figures.

CHANGED PRESENTATIoN IN 2013In the 2013 annual report, the presentation of associates has been changed. To the extent that profit from associates is derived from operations within the Group's primary activi-ties, it will from 2013 be presented as part of consolidated "Operating profit before exceptional items”, whereas it was previously presented after ”Profit before financials”.

This change has been made to give a more true and fair view of the aggregate activity within the primary activities. The comparative figures have been restated accordingly. The change has not had a material impact on the comparative figures.

mATERIAlITY IN PRESENTATIoNIn connection with the preparation of the annual report, management evaluates how the annual report should be presented. In the evaluation, it is considered important that the contents are of a material nature to users.

Note

35 Accounting policies






In the management review, management endeavours to present a comprehensive and useful review of matters with the greatest materiality to the Falck Group and the attain-ment of the Group's financial targets. In the presentation of the financial statements, a specific evaluation is made in respect of each line item and note to the financial state-ments of the need for further decomposition or, alterna-tively, aggregation of several line items and omissions or aggregation of notes to the financial statements. The choice of presentation is made based on an overall assessment of the requirement to give a true and view, the requirements to form under IFRS, Falck's specific circumstances and other relevant factors.

BASIS oF CoNSolIDATIoNThe Group financial statements consolidate the accounts of the parent company, Falck Holding A/S, and the subsidiaries in which Falck Holding A/S directly or indirectly holds a ma-jority of the votes or in any other way exercises a controlling interest. In assessing control, potential voting rights that are exercisable as of the balance sheet date are taken into account.

The consolidated financial statements are prepared on the basis of the financial statements of Falck Holding A/S and subsidiaries by adding items of a like nature.

The financial statements used for consolidation are pre-pared in accordance with the Group’s accounting policies.

In the consolidation, investments in subsidiaries, intercom-pany income and expenses, intercompany balances and gains and losses on transactions between Group companies are eliminated.

The line items of the financial statements of subsidiaries are fully consolidated in the consolidated financial statements. Profit for the year and equity attributable to non-controlling interests in subsidiaries that are not wholly owned are in-cluded in the consolidated profit and equity, respectively, but as separate line items.

AssociatesEnterprises in which the Falck Holding Group exercises sig-nificant influence but not control are classified as associates. Significant influence is generally achieved by directly or in-directly holding or controlling more than 20%, but less than 50%, of the voting rights.

Unrealised gains on transactions with associates are elimi-nated in proportion to the Group’s share of the enterprise.

Business combinationsCompanies acquired or established during the financial year are recognised as from the date of acquisition or inception. Companies divested or discontinued are recognised in the income statement until the date of divestment. The compar-ative figures are not restated to reflect companies acquired, divested or discontinued.

Acquisitions of subsidiaries or associates are accounted for applying the acquisition method. Identifiable assets, liabili-ties and contingent liabilities of acquirees are stated at their fair value at the date of acquisition. Identifiable intangible assets are recognised if they are separable or derive from a contractual right. Deferred tax on revaluations is recognised.

The acquisition date is the date on which the Group obtains control of the acquiree.

Any positive difference between the consideration and the value of non-controlling interests in the acquiree and the fair value of the previously held interests in the acquiree, on the one hand, and the fair value of the identifiable assets, liabilities and contingent liabilities, on the other hand, is recognised in the balance sheet as goodwill. Goodwill is not amortised, but is tested for impairment at least once a year. On acquisition, goodwill is allocated to the cash-generating units which will subsequently form the basis for future impairment tests. Any goodwill arising and any fair value adjustments made on the acquisition of a foreign company whose functional currency is not the same as the presenta-tion currency used in the consolidated financial statements are 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. Any negative difference is recognised in the income statement on the date of acquisition. The con-sideration in a business combination consists of the fair val-ue of the agreed purchase price. For business combinations in which the agreement includes a provision on adjustment of the consideration conditional on future events (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 connection with acquisitions, the value of which is contin-gent on future events, will be recognised as part of the con-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

35 Accounting policies (continued)






Adjustments of liabilities in connection with contingent consideration and issued put options, the value of which is conditional on future events relating to business combina-tions with an acquisition date prior to 1 January 2010, will continue to be recognised in accordance with IFRS 3 (2004), i.e. adjustments are recognised in goodwill until the condi-tions have been met or the issued put options are exercised.

If uncertainties regarding the measurement of acquired identifiable assets, liabilities, contingent liabilities or the consideration for the business combination exist at the acquisition date, initial recognition takes place on the basis of preliminary fair values. If identifiable assets, liabilities, contingent liabilities and the consideration for the business combination are subsequently determined to have had a dif-ferent fair value at the acquisition date than first assumed, goodwill is adjusted until 12 months after the acquisition date. The effect of the adjustments is recognised in the opening equity, and the comparative figures are restated accordingly. Goodwill is not adjusted subsequently except in the event of material errors.

Gains or losses on divestment or winding up of subsidiaries and associates are stated as the difference between the sales or disposal amount and the carrying amount of the net assets including goodwill at the time of sale plus sales or winding up costs. In addition, any retained non-controlling interests are measured at fair value. Gains or losses on the divestment or winding up of subsidiaries and associates and the effect of renewed measurement of any non-controlling interests are recognised in the income statement.

Non-controlling interestsOn initial recognition, non-controlling interests are mea-sured either at fair value (including the fair value of goodwill related to non-controlling interests in the acquiree) or as non-controlling interests’ share of the acquiree’s identifiable assets, liabilities and contingent liabilities measured at fair value (excluding the fair value of goodwill related to non-controlling interests’ share of the acquiree). The measure-ment basis for non-controlling interests is selected for each individual transaction.

Acquisition and divestment of non-controlling interestsIncreases and reductions of non-controlling interests are treated for accounting purposes as transactions with share-holders, in their capacity as shareholders. As a result, any differences between adjustment to the carrying amount of non-controlling interests and the fair value of the consider-ation 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 receiv-ing put options are considered to have been redeemed on the acquisition date. The non-controlling interests are elimi-nated and a debt obligation is recognised at fair value on ini-tial recognition. The fair value is determined as the present value of the exercise price of the option. The subsequent measurement is at fair value with recognition in equity of value changes as they arise.

Issued put options related to business combinations with an acquisition date prior to 1 January 2010 will continue to be recognised in accordance with IFRS 3 (2004), i.e. subsequent measurement takes place at amortised cost with recogni-tion of interest expenses in the income statement and value changes in goodwill as they arise. Any subsequent dividend payments to option holders are recognised as a financial expense in the income statement in the cases where the op-tion price is independent of the dividend payment. Dividend payments are included in the determination of the cost of the put options in cases where the option price is adjusted for 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 currency in the primary economic environment in which the reporting entity operates. Transactions in currencies other than the functional currency are transactions in foreign cur-rencies.

On initial recognition, transactions denominated in foreign currencies are translated to the functional currency at the exchange rates ruling at the transaction date. Exchange dif-ferences arising between the exchange rate ruling at the transaction date and the exchange rate ruling at the date of actual payment are recognised in the income statement under financial income or financial expenses.

Receivables, payables and other monetary items denomi-nated in foreign currency are translated into the functional currency at the exchange rate ruling at the balance sheet date. The difference between the exchange rate ruling at the balance sheet date and the exchange rate ruling at the date when the receivable or payable arose or the exchange rate applied in the most recent financial statements is rec-ognised in the income statement under financial items.

The income statements of foreign subsidiaries are trans-lated at the exchange rates ruling at the transaction dates, and the balance sheet is translated at the exchange rates ruling at the balance sheet date. An average exchange rate

Note







for the month is used as the exchange rate ruling at the transaction date to the extent that this does not signifi-cantly change the presentation of the underlying transac-tions. Exchange differences arising on the translation of the equity of foreign subsidiaries at the beginning of the year to the exchange rates ruling at the balance sheet date and on the translation of income statements 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 income and classified in equity in a separate currency translation reserve. Exchange differences are allocated between the parent company’s and the non-controlling interests' shares of equity.

However, for foreign subsidiaries and associates operating in hyperinflationary economies, revenue and costs are trans-lated 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 the buying power of the functional currency based on inflation until the balance sheet date (inflation cor-rection). The effect of the inflation correction is recognised in the currency translation reserve in equity. In the income statement, it is recognised in financials as a loss/gain on the monetary net position in the relevant entities. The assess-ment of when an economy is hyperinflationary is based on qualitative as well as quantitative factors, including whether the accumulated inflation over a three-year period is more than 100%.

Foreign exchange adjustments of balances that are con-sidered part of the overall net investment in companies with functional currencies other than DKK are recognised in the consolidated financial statements directly in other comprehensive income and classified in equity in a separate currency translation reserve. Similarly, exchange gains and losses on the part of loans and derivative financial instru-ments effectively hedging the net investment in such com-panies and which effectively hedge against corresponding exchange gains/losses on the net investment in the com-pany are recognised directly in other comprehensive income and are classified in equity in a separate currency translation reserve.

On recognition in the consolidated financial statements of associates with a functional currency other than Danish kro-ner, the share of results for the year is translated at average exchange rates, and the share of equity including goodwill is translated at the exchange rates ruling at the balance sheet date. Exchange differences arising on the translation of 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 aver-age exchange rates to exchange rates ruling at the balance sheet date are recognised directly in other comprehensive equity and are classified in equity in a separate currency translation reserve.

On the divestment of foreign subsidiaries, foreign exchange adjustments accumulated in equity via other comprehensive income and which can be attributed to entities are reclassi-fied from the “Currency translation reserve” to the income statement together with any gain or loss on the divestment.

On the divestment of partially owned foreign subsidiaries, the part of the currency translation reserve that relates to non-controlling interests is not recognised in the income statement.

On partial divestment of foreign subsidiaries without giving up 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 and joint ventures, the proportionate share of the accumulated currency transla-tion reserve recognised in other comprehensive income is transferred to profit for the year together with the gain or loss on the divestment

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

Derivative financial instrumentsDerivative financial instruments are recognised from the trade date and measured at fair value.

The fair value of derivative financial instruments is recog-nised as separate assets or liabilities in other receivables or other payables respectively.

The fair value of derivative financial instruments is deter-mined on the basis of market data and generally accepted pricing models.

Hedges of net investmentDerivative financial instruments entered into in order to effectively hedge investments in foreign subsidiaries are recognised in the balance sheet through comprehensive income at the time they are entered into and are measured 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.

Note







Fair value hedgesDerivative financial instruments entered into in order to hedge 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 bal-ance sheet date.

Any market value adjustments of derivative financial instru-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 hedgesChanges in the part of the fair value of derivative financial instruments designated as and qualifying for hedging of future cash flows, and which effectively hedge changes in the 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 equity and recognised in the same financial item as the hedged item. When proceeds from future borrowings are hedged, any gains or losses regarding hedging transactions are, however, transferred from equity over the maturity pe-riod of the borrowings.

Forward premiums or forward discounts on forward ex-change transactions are recognised in the income statement during their terms.

other derivative financial instrumentsFor derivative financial instruments which do not meet the criteria for hedge accounting, changes in the fair value are recognised in the income statement under financials.

INComE STATEmENTRevenue represents the value of services and goods deliv-ered and invoiced subscriptions attributable to the financial period, 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.

Revenue from subscriptions is allocated to the income state-ment on a straight-line basis.

Revenue from sales of goods is recognised when the signifi-cant risks and rewards of ownership have been transferred to the buyer.

Revenue is measured at the fair value of the agreed consid-eration excluding VAT and other taxes collected on behalf of third parties. All discounts granted are recognised in revenue.

Other 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 assistance represents costs in-curred and external assistance used to generate the year’s revenue.

Other external costs include costs relating to operating and maintaining equipment and property as well as sales and administrative expenses.

Staff costs represent salaries and wages, pension contribu-tions, social security costs and other staff costs.

Income 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. To the extent that profit from associates is derived from operations within the Group's primary activi-ties, profit from associates is presented in "Operating profit before exceptional items”.

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

Profit from associates after tax not generated from opera-tions within the Group's primary activities is recognised in the income statement on the line item "Profit from finan-cials".

Financials represent interest income and interest expense, realised and unrealised capital gains and losses and amorti-sation related to financial assets and liabilities. Dividends to capital holders who have received put options in connection with business combinations are recognised as a financial expense in the cases where the option price is independent of dividend payments. Financials are recognised at the amounts related to the year. Furthermore, realised and un-realised gains and losses on derivative financial instruments which cannot be classified as hedging arrangements are included.

Note







INComE TAXESFalck Holding A/S and the Group's subsidiaries are jointly taxed with Lundbeckfond Invest A/S, which is the manage-ment company for the national joint taxation and conse-quently settles all payments of income taxes with the tax authorities in respect of the jointly taxed companies and the foundation's other Danish subsidiaries.

Current Danish corporation tax is allocated among the jointly taxed companies according to the taxable income of these companies.

Income tax for the year, consisting of current tax for the year and changes in deferred tax, is recognised in profit for the year with respect to the part that can be attributed to profit for the year and in other comprehensive income with respect to the part that can be attributed to other compre-hensive income.

Corporation tax payableCorporation tax payable includes corporation tax made up on the basis of estimated taxable income for the financial year and prior-year adjustments.

Deferred taxDeferred tax is calculated according to the balance sheet lia-bility method and is based on all timing differences between the accounting and tax value of assets and liabilities.

Deferred tax is not recognised on goodwill that is not tax deductible, and deferred tax is not recognised on undistrib-uted profits in subsidiaries and timing differences that arose at the time of recognition in the balance sheet other than for acquisitions, if such differences will not affect profit or taxable income.

When alternative tax rules can be applied to determine the tax base, deferred tax is measured based on Management’s planned use of the asset or settlement of the liability re-spectively.

Deferred tax assets, including the tax base of tax loss carry-forwards, are recognised under other non-current assets at the expected value of their utilisation, either as a set-off against tax on future income or as a set-off against deferred tax liabilities within the same legal tax entity and jurisdiction.

Deferred tax assets and liabilities are offset within the same legal tax unit or jurisdiction. Deferred tax assets are meas-ured at the value at which they are expected to be realised.

Deferred tax is measured using the tax rate expected to apply when timing differences are reversed. Changes in de-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 for goodwill and other intangible assets with indefinite useful lives, are measured at cost less accumulated straight-line amortisation and depreciation and impairment losses. Goodwill and intangible assets with indefinite useful lives are measured at cost less accumulated amortisation and im-pairment losses. Amortisation, depreciation and impairment losses are recognised in the income statement.

The basis of depreciation is calculated with due considera-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, the effect on depreciation going forward is recognised as a change in accounting estimates.

Cost includes direct costs related to the asset and the initial estimate of the costs related to dismantling and removing the item and restoring the site on which it is located, if the costs meet the definition of a liability. Cost further includes borrowing costs from specific and general borrowings directly relating to the acquisition, construction or develop-ment of the individual qualifying asset.

Where parts of an item of property, plant and equipment have different useful lives, they are accounted for as sepa-rate items.

Each year, the assets are reviewed in order to assess wheth-er there are indications of impairment. If such indications exist, the recoverable amount, determined as the higher amount of the fair value of the asset adjusted for expected sales costs and the value in use of the asset, is calculated. The value in use is calculated based on the estimated future cash flows, discounted by using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the assets.

Note







If the recoverable amount of an asset or its cash-generating unit is lower than the carrying amount, an impairment charge is recognised in respect of the asset. The impairment loss is recognised in the income statement.

In addition, for goodwill and other intangible assets with indefinite useful lives, impairment tests are performed at each balance sheet date, regardless of whether there are any indications of impairment. For acquisitions, the first impairment test is performed before the end of the year of acquisition.

Impairment losses are reversed if the recoverable amount increases. Impairment losses will only be reversed to the extent that the value in use does not exceed the carrying amount of the asset if the impairment had never been made. Impairment losses on goodwill are not reversed.

Intangible assetsGoodwill is recognised in the balance sheet at cost on initial recognition as described under “Business combinations”. Goodwill is subsequently measured at cost less accumulated impairment. Goodwill is not amortised.

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 which can be directly or indirectly attributed to the assets in question.

Other intangible assets include software, etc.

Software is amortised over the expected economic life, esti-mated to be 3 to 5 years. For major administrative systems, the economic life is estimated to be 8 years.

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

Depreciation of buildings is calculated on a straight-line ba-sis over the expected useful lives of the assets, estimated to be between 25 and 33 years. Certain installations are depre-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-pected useful lives are as follows:

YearsVehicles according to category 5-12Fixtures and fittings, tools and equipment 3-10Emergency response centres, radio systems, major administrative systems and networks 8Other IT equipment 3-5Fire extinguishers and similar equipment installed at customer locations 3-5

Assets held under finance leases are recognised under prop-erty, plant and equipment and measured at the lower of the fair value and value in use of the future lease payments at the inception of the lease.

Assets held under finance leases are depreciated over the useful lives of the assets or, if shorter, over the lease term.

Gains or losses on the disposal or scrapping of property, plant and equipment are determined as the difference between the sales price less dismantling, selling and re-establishing costs and the carrying amount. Any gains or losses are recognised in the income statement as other op-erating income or external expenses respectively.

AssociatesInvestments in associates in the consolidated financial statements 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-counting policies, with the addition of values added on acquisition, including goodwill. Investments in associates are tested for impairment when there is an indication that the investment may be impaired. Associates with a negative equity value are recognised at zero. If the Group has a legal or constructive obligation to cover the associate's negative balance, such obligation is recognised under liabilities. Re-ceivables from associates are measured at amortised cost. Provision is made for bad debts.

InventoriesGood purchased for resale and assistive aids are measured at cost using the FIFO method.

Where the net realisable is lower than cost, inventories are written down to this lower value

Note







ReceivablesReceivables are measured at amortised cost less provision for bad debts. Write-downs are made individually and on a portfolio level. In the event there is no objective indication of individual impairment, receivables are tested for objec-tive indications of impairment on a portfolio level.

Impairment losses are calculated as the difference between the carrying amount and the present value of expected fu-ture cash flows, including realisable values of any collateral provided.

PrepaymentsPrepayments comprise prepaid costs, which are measured at amortised cost.

Securities and other investmentsListed securities and unlisted securities, which are currently all classified as available for sale, are recognised at fair value, corresponding to the officially quoted price of listed securi-ties and estimated fair values based on current market data and recognised valuation methods for unlisted securities. Unrealised fair value adjustments are recognised directly in other comprehensive income, except for impairment losses, which are recognised in the income statement under finan-cials. On realisation, the accumulated fair value adjustment recognised in other comprehensive income is transferred to financials in the income statement.

EqUITY

DividendDividend that has been finally adopted is recognised as a li-ability.

Hedging reserveHedge transactions that meet the criteria for hedging future cash flows and for which the hedged transaction has yet to be realised are recognised in equity through other compre-hensive income under the hedging reserve.

Foreign exchange adjustments relating to hedging transac-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 reserveForeign exchange adjustments arising on the translation of financial statements for entities which have a functional currency other than Danish kroner and foreign exchange adjustments relating to financial assets, and liabilities rep-

resenting a part of the Group’s net investment in such enti-ties are recognised in equity through other comprehensive income under the currency translation reserve.

On full or partial realisation of a net investment, foreign exchange adjustments are recognised in the income state-ment.

Non-controlling interestsThe proportionate shares of the profits and equity of sub-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 “Business combinations”.

Put options issued as part of the consideration for business combinations are recognised as described under “Acquisi-tion and divestment of non-controlling interests” above.

warrant programmeWarrants are issued at the market value on the date of grant. Payments received and made in relation to the war-rant programme are recognised in equity.

lIABIlITIES

Pension obligationsMost of the Group's pension agreements are defined con-tribution plans under which payments are made to external pension institutions. Contributions to such plans are recog-nised in the income statement in the period in which they are earned by the employees, and outstanding payments are included in the balance sheet under other payables.

In certain countries, the Group has pension agreements that are defined-benefit plans. These plans are either externally funded, with the assets of the plans held separately from those of the Group in independently administered funds, or unfunded. The liabilities related to the defined-benefit plans are determined using the projected unit credit method.

An actuarial assessment is made annually to determine the present value of the future benefits to be paid under the defined-benefit plans. The present value is calculated on the basis of assumptions regarding the future developments in the wage/salary level as well as interest, inflation and mortality rates in the countries where such plans exist. The present value is calculated only for benefits to which the employees have already earned the right during their em-ployment with the Group until the present time.

Note







The actuarial calculation of the pension obligation is recog-nised 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 it will lead to a reduction in future payments under the plan.

Actuarial gains and losses arise mainly from changes in actuarial assumptions and differences between actuarial assumptions and what has actually occurred. Actuarial gains and losses are recognised directly in other comprehensive income.

For defined-benefit plans, costs charged to the income statement consist of current service cost, based on actuarial assessments and financial forecasts made at the beginning of the year, including expected service cost, interest cost, expected return on plan assets and past service cost. The past service cost for the enhancement of pension benefits is accounted for when such benefits vest or become a con-structive obligation.

Interest from pension assets and liabilities is recognised un-der financials.

Other non-current employee benefits are similarly recog-nised based on an actuarial calculation. However, all actuari-al gains and losses are recognised immediately in the income statement. Other non-current employee obligations include jubilee bonuses and non-current severance schemes.

ProvisionsProvisions are recognised when, as a consequence of an event occurring before or on the balance sheet date, the Group has a legal or constructive obligation and it is prob-able that an outflow of resources will be required to settle the obligation.

Provisions for restructuring are recognised when a detailed, formal plan for the restructuring has been made before or on the balance sheet date and has been announced to the parties involved. In connection with acquisitions, provisions for restructuring costs are only included in the computation of goodwill if an obligation exists for the entity acquired as of the date of acquisition.

Provisions are made for onerous contracts when the antici-pated benefits to the Group from a contract are outweighed by the unavoidable costs under the contract.

When the Group is under an obligation to dismantle an as-set or re-establish the site where the asset has been used, a

provision 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 to their present value. The discount factor used reflects the general level of interest rates. The present value of the costs is recognised in the cost of the item of property, plant and equipment in question and depreciated together with these assets.

The increase of the present value over time is recognised in the income statement under financial expenses.

Financial liabilitiesDebt to credit institutions is recognised at the raising of a loan at fair value less transaction costs. In subsequent peri-ods, financial liabilities are measured at amortised cost.

Residual lease commitments from finance leases are recog-nised at amortised cost.

Other financial liabilities are measured at amortised cost.

Deferred incomeDeferred income primarily represents subscription revenue relating to several financial periods.

Fair value measurementThe Group uses the fair value convention for certain dis-closure requirements and for the recognition of financial instruments. Fair value is defined as the amount that would be received to sell an asset or paid to transfer a liability, respectively, in an orderly transaction between market par-ticipants.

Fair value is based on the primary market. If no primary mar-ket exists, fair value will be based on the most advantageous market, defined as the market that maximises the price of the asset or liability less transaction and transport costs.

In the determination of fair value, the Group uses, to the widest possible extent, observable prices in active mar-kets for identical instruments (level 1). Alternatively, other observable 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 market data (level 2).

To the extent that observable information is not available or cannot be used without material modifications, the Group uses recognised valuation methods based on all other inputs.

Note







leasingFor financial reporting purposes, lease liabilities are classi-fied as either finance or operating lease liabilities.

Leases are classified as finance leases when substantially all risks and rewards of ownership of the leased asset are trans-ferred. Other leases are classified as operating leases.

The accounting treatment of assets held under finance leases and the related liability is described in the sections on property, plant and equipment and financial liabilities respectively.

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 STATEmENTThe cash flow statement is presented according to the indi-rect method and shows the cash flow from operating activi-ties, the cash flow from investing activities, the cash flow from financing activities and cash and cash equivalents at the beginning and end of the year.

The cash flow statement includes cash flows from compa-nies acquired as from the date of acquisition, and cash flows from companies divested until the date of divestment.

Cash flow from operating activitiesCash flows from operating activities include revenue less operating expenses and interest adjusted for non-cash oper-ating items and changes in working capital.

Cash flows from operating activities comprise cash flows related to special items and corporation tax.

Cash flow from investing activitiesCash flows from investing activities include cash flows from the 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.

Entering into a finance lease is considered a non-cash trans-action.

Cash flow from financing activitiesCash flows from financing activities include cash flows from changes in share capital and related costs, purchases and sales of treasury shares, cash flows from dividends, cash flows from interest-bearing debt raised and repayment thereof.

Cash flows relating to assets held under finance leases are recognised as payment of interest and repayment of debt.

Cash and cash equivalentsCash and cash equivalents comprise cash and short-term marketable securities with a term of three months or less at the time of acquisition which are subject to an insignificant risk of changes in value.

Cash flows in currencies other than the functional currency are translated at average exchange rates unless these differ materially from the exchange rate ruling at the transaction date.

SEGmENT REPoRTINGThe segment information has been prepared in accordance with the Group’s accounting policies and is based on the in-ternal 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.

Non-current assets in a segment comprise non-current as-sets used directly in the operation of the segment, including intangible assets, property, plant and equipment and invest-ments 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 RATIoSFor definitions of financial ratios, see page 119.

Note





94 Falck Annual Report 2013 | Parent

Notes to the parent company financial statements

Notes to the balance sheet

7. Investment in subsidiary 102

8. Share capital 103

9. Deferred tax 103

10. Credit institutions 103

11. Other payables 104

Notes to the cash flow statement

12. Net financials, cash flow 104

Supplementary notes

13. Contingent liabilities, contractual

liabilities and collateral security 104

14. Financial instruments 105

15. Related parties 108

16. Events after the balance sheet date 108

17. Accounting policies 109

Financial statements

Income statement 95

Statement of comprehensive income 96

Cash flow statement 97

Balance sheet 98

Equity statement 100

Notes to the income statement

1. Other operating income 101

2. Fees to auditors appointed at

the annual general meeting 101

3. Staff costs 101

4. Financial income 101

5. Financial expenses 102

6. Income taxes 102

Contents of the parent company financial statements

management review | Consolidated financial statements | parent coMpany financial stateMents | Statements | The company

Income statement | Statement of comprehensive income | Cash flow statement | Balance sheet | Equity statement | Notesparent financial

Parent | Falck Annual Report 2013 95



Income statement for the year ended 31 December

Note DKK million 2013 2012 1 Other operating income 8 8 2 Other external costs -3 -3 3 Staff costs -19 -12

Profit before financials -14 -7

Analysed as follows: operating profit before costs from business combinations -14 -7 Costs from business combinations - -

PRoFIT BEFoRE FINANCIAlS -14 -7 Dividend from subsidiaries 550 - 4 Financial income 6 1 5 Financial expenses -79 -94

PRoFIT BEFoRE TAX 463 -100 6 Income taxes 22 26

PRoFIT FoR THE YEAR 485 -74

PRoPoSED PRoFIT AlloCATIoN Proposed dividend - - Retained earnings 485 -74

ToTAl 485 -74



incoMe stateMent | Statement of comprehensive income | Cash flow statement | Balance sheet | Equity statement | Notespar incoMe stateMent


Statement of comprehensive income for the year ended 31 December

Note DKK million 2013 2012 Profit for the year 485 -74

Itemsthatcanbereclassifiedtotheincomestatement Value adjustment of interest hedging instruments 19 -8 6 Tax on other comprehensive income -5 2

other comprehensive income after tax 14 -6

ToTAl ComPREHENSIvE INComE 499 -80



Income statement | stateMent of coMprehensive incoMe | Cash flow statement | Balance sheet | Equity statement | Notespar coMprehensive


Cash flow statement for the year ended 31 December

Note DKK million 2013 2012 Total revenue 8 8 Total costs -22 -15

Profit before financials -14 -7 Change in intercompany balance with Group companies -84 14 Change in operating assets - 1 Dividend from subsidiaries 550 - 12 Net financials, cash flow -116 -90 6 Income taxes received 26 5

CASH FlowS FRom oPERATING ACTIvITIES 362 -77

7 Acquisition of subsidiaries - -86

CASH Flow FRom INvESTING ACTIvITIES - -86

Capital injection - - Interest-bearing debt raised -362 162

CASH FlowS FRom FINANCING ACTIvITIES -362 162

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

CASH AND CASH EqUIvAlENTS AT YEAR-END - -



Income statement | Statement of comprehensive income | cash flow stateMent | Balance sheet | Equity statement | Notespar cash flow




Assets

7 Investment in subsidiary 7,802 7,802 Receivables from Group companies 228 46 9 Deferred tax assets 1 1

ToTAl FINANCIAl ASSETS 8,031 7,849

ToTAl NoN-CURRENT ASSETS 8,031 7,849

Income taxes 16 26

ToTAl CURRENT ASSETS 16 26

ToTAl ASSETS 8,047 7,875



Income statement | Statement of comprehensive income | Cash flow statement | Balance sheet | Equity statement | Notespar Balance




Equity and liabilities

8 Share capital 67 67 Hedging reserve -7 -21 Retained earnings 5,891 5,406

ToTAl EqUITY 5,951 5,452

10 Credit institutions 1,984 1,986

ToTAl NoN-CURRENT DEBT 1,984 1,986

10 Credit institutions - 358 Payables to Group companies 104 6 11 Other payables 8 73

ToTAl CURRENT DEBT 112 437

ToTAl EqUITY AND lIABIlITIES 8,047 7,875





Equity statement

Share Hedging Retained 2013 DKK million capital reserve earnings Total

Equity at 1 january 2013 67 -21 5,406 5,452

Equity movements in 2013 Value adjustment of interest hedging instruments 19 19 Tax on other comprehensive income -5 -5

Other comprehensive income - 14 - 14 Profit for the year 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

2012 DKK million

Equity at 1 january 2012 67 -15 5,480 5,532

Equity movements in 2012 Value adjustment of interest hedging instruments -8 -8 Tax on other comprehensive income 2 2

Other comprehensive income - -6 - -6 Profit for the year -74 -74

Total comprehensive income - -6 -74 -80

Total equity movements in 2012 - -6 -74 -80

ToTAl EqUITY AT 31 DECEmBER 2012 67 -21 5,406 5,452



Income statement | Statement of comprehensive income | Cash flow statement | Balance sheet | eQuity stateMent | Notespar eQuity




1 Other operating income

Management fee from Group companies 8 8

Total other operating income 8 8

2 Fees to auditors appointed at the annual general meeting

Audit -1 -1

Total fees to Deloitte -1 -1

3 Staff costs

Remuneration to the Executive Management Board -15 -13 Remuneration to the Board of Directors -2 -1

Total remuneration -17 -14

Other staff costs -2 -1

Total -19 -15 Of which reinvoiced - 3

Total staff costs -19 -12

Number of full-time employees 2 2

Remuneration to the Executive Management Board includes both a fixed salary and variable remu-neration. The variable remuneration is fixed on the basis of an assesment of the Group's perfor-mance. The members of the Executive Management Board do not receive contributions to pension plans.

The service contracts of the members of the Executive Management Board include severance peri-ods which, in the case of resignation by an executive, are 6 months and, in the case of termination by the company, are 12 months.

4 Financial income

Interest from Group companies 6 1

Total financial income 6 1



management review | Consolidated financial statements | parent coMpany financial stateMents | Statements | The companypar notes




5 Financial expenses

Interest to credit institutions -76 -92 Other financial expenses -3 -2

Total financial expenses -79 -94

6 Income taxes

Current tax 22 25 Change in deferred tax for the year - - Prior-year adjustments - 1

Total income taxes 22 26 Tax on other comprehensive income -5 2

Total tax 17 28

Income taxes received 26 5

Breakdown of tax rate: Total income taxes 22 26

Tax base for the year -88 -100


Danish tax rate 25.0% 25.0%Non-deductible costs/(tax-exempt income) 0.0% 0.0%Other adjustments including adjustments relating to prior years 0.0% 1.0%


Tax on other comprehensive income Tax on value adjustments of interest hedging instruments -5 2

Total tax on other comprehensive income -5 2

7 Investment in subsidiary

Cost at 1 January 7,802 7,716 Additions - 86

Cost at 31 December 7,802 7,802

Carrying amount at 31 December 7,802 7,802

Investment in subsidiary represents 100% of the share capital of Falck A/S. The shares are pledged in security of the company's liabilities.







8 Share capital

Share capital at 1 January 67 67 Capital increase through cash payment - -

Share capital at 31 December 67 67

The share capital is divided into 66,952,345 shares with a nominal value of DKK 1.00 each. The shares are fully paid up and are not divided into classes.

The company was founded on 1 April 2011 as a private limited company (ApS) with a share capital of DKK 80,000. The company was converted into a public limited company (A/S) on 5 July 2011, and on that occasion, its share capital was increased by DKK 67 million.

9 Deferred tax

Deferred tax assets at 1 January 1 1 Change in deferred tax for the period - -


Deferred tax (receivable) 1 1

Deferred tax assets at 31 December 1 1

Breakdown of deferred tax: Non-current debt and provisions 1 1

Deferred tax assets at 31 December 1 1

10 Credit institutions

Non-current liabilities: Long-term loans 1,984 1,986 Current liabilities: Short-term loans - 358

Total credit institutions 1,984 2,344

Breakdown by maturity: Due within 1 year - 358 Due between 1 and 5 years 1,984 -12 Due after 5 years - 1,998

Total 1,984 2,344

Breakdown by currency: DKK 1,984 2,344

Total 1,984 2,344







10 Credit institutions (continued)

Interest reset period: Within 3 months 1,984 2,344

Total 1,984 2,344

The statements set out above do not include liabilities relating to interest for subsequent financial periods. See note 31 to the consolidated financial statements for a description of the Group's risks and cash resources.

The effective interest rate has been determined at 3.7% (2012: 4.1%).

For debt with an interest reset period within 3 months, regular assessments are made of how long the interest period should be. As at the balance sheet date, the interest rate in DKK was fixed for one month and averaged approximately 2.9% (2012: 3,3%).

The market value of debt with an interest reset period within 3 months is approximately DKK 2,000 million (2012: DKK 2,344 million).

DKK 16 million (2012: DKK 17 million) of capitalised loan costs has been deducted from the carrying amount of debt.

11 Other payables

Net fair value of interest rate swaps 8 73

Total other payables 8 73

12 Net financials, cash flow

Financial income and expenses -73 -93 Settlement of financial contracts -46 - Amortisation 3 3

Total net financials -116 -90

13 Contingent liabilities, contractual obligations and collateral security

Falck Holding A/S is jointly liable for the Group’s overall VAT liability together with the other jointly registered Danish companies.

joint taxation Falck Holding A/S is taxed jointly with Lundbeckfond Invest A/S in Denmark. The company is therefore partly jointly and sever-ally liable and partly secondarily liable for any obligations to withhold tax on interest, royalties and dividends for the jointly taxed companies. However, the secondary liability will, as a maximum, amount to the proportion of the company's capital held directly or indirectly by the ultimate parent company.






Note DKK million

14 Financial instruments

See note 31 to the consolidated financial statements for a description of the risk exposure and risk management of Falck Holding A/S. Interest rate risk The interest rate risk of Falck Holding A/S is mainly affected by the Group's overall financing. Based on the current market situation, the Group's Executive Management Board and the Board of Directors have decided to extend the existing interest rate swaps, so that between 65% and approximately 85% of the expected financing of Falck Holding A/S is at fixed rates of interest via interest rate swaps that expire in the period until September 2017. The rest of the overall financing is based on short-term interest rates. For this reason, Falck Holding A/S is only to a minor extent sensitive to fluctuations in market interest rates, and a fluctuation by 1% would change the interest expense for the year by DKK 7 million (2012: DKK 7 million). Without these hedges, a fluctuation by 1% would change the Group's interest expense by DKK 20 million (2012: DKK 20 million). The interest rate exposure is hedged by interest rate swaps to the effect that the basic rate of interest of the debt denominated in DKK cannot exceed 1.19%.

Falck Holding A/S monitors developments in market interest rates closely in order to be able to react if the market situation changes. Assumptions regarding sensitivity information The sensitivity stated has been determined based on the recognised financial assets and liabilities as at 31 December 2013. No ad-justment has been made for servicing and raising of debt, or the like in 2013. Furthermore, it is assumed that all hedges of floating-rate loans are deemed to be effective.

maturity analysis of financial assets and liabilities Assumptions applied in the maturity analysis The maturity analysis is based on all undiscounted cash flows, including estimated interest payments. Interest payments are esti-mated based on current market conditions.

The undiscounted cash flows from derivative financial instruments are presented gross, unless the parties have a contractual right/obligation to settle net.

Due Contrac- Due between Due tual Total within 1 and 5 after 5 cash carrying market Contractual cash flows including interest 2013 1 year years years flows amount value

Financial assets: Receivables from Group companies - 228 - 228 228 228

loans and receivables - 228 - 228 228 228

Derivative financial instruments to hedge future cash flows 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

Financial liabilities measured at amortised cost 58 2,229 - 2,287 1,984 2,000

Derivative financial instruments to hedge future cash flows 29 5 - 34 34 34


Total financial liabilities 87 2,234 - 2,321 2,018 2,034






Note DKK million


Due Contrac- Due between Due tual Total within 1 and 5 after 5 cash carrying market Contractual cash flows including interest 2012 1 year years years flows amount value

Financial assets: Receivables from Group companies - 46 - 46 46 46

loans and receivables - 46 - 46 46 46

Total financial assets - 46 - 46 46 46

Financial liabilities: Credit institutions 421 270 2,044 2,735 2,344 2,344

Financial liabilities measured at amortised cost 421 270 2,044 2,735 2,344 2,344

Derivative financial instruments to hedge future cash flows - 73 - 73 73 73

Financial liabilities used as hedging instruments - 73 - 73 73 73

Total financial liabilities 421 343 2,044 2,808 2,417 2,417

Hedging and derivative financial instruments The fair value of the effective part of the outstanding foreign exchange contracts as at 31 December used as hedging instruments and 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

2013 2013

Hedged market Hedged market value value value value DKK (fixed rate 1.40%) expires in August 2014 2,300 -19 1,000 7 DKK (fixed rate 0.56%) from August 2014 to June 2016 725 - 725 - DKK (fixed rate 0.88%) from August 2014 to September 2017 2,015 3 - - USD (fixed rate 0.55%) expires in August 2014 406 -1 406 1 USD (fixed rate 1.14%) from August 2014 to September 2017 390 2 390 -2 EUR (fixed rate 1.17%) expires in August 2014 1,492 -9 1,492 9 EUR (fixed rate 0.67%) from August 2014 to September 2017 1,201 2 1,201 -2

-22 13 Of which recognised in income statement - -

For future recognition -22 13






Note DKK million


Interest rate swaps: Bought Sold to subsidiaries

2012 2012

Hedged market Hedged market value value value value USD (fixed rate 0.55%) expires in 2014 424 -2 424 2 DKK (fixed rate1.40%) expires in 2014 2,300 -47 1,000 20 EUR (fixed rate 1.17%) expires in 2014 1,492 -24 1,492 24

-73 46 Of which recognised in income statement - -

For future recognition -73 46

methods and assumptions for the determination of fair values Interest rate swaps are valued using generally accepted valuation techniques based on relevant observable swap curves and ex-change rates. 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 Derivative financial instruments to hedge future cash flows - 26 - 26

Total financial assets - 26 - 26

Financial liabilities Derivative financial instruments to hedge future cash flows - 34 - 34


2012

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 Derivative financial instruments to hedge future cash flows - 46 - 46

Total financial assets - 46 - 46

Financial liabilities Derivative financial instruments to hedge future cash flows - 73 - 73








15 Related parties

Falck Holding A/S has registered the following shareholders who hold 5% or more of the share capital:

Lundbeckfond Invest A/S, Copenhagen 57.4% 57.4%KIRKBI Invest A/S, Billund 26.5% 20.0%Liberatio A/S, Copenhagen (owned by the members of the Executive Management Board) 10.3% 10.3% During the period, there were no transactions with these related parties. As parent company, Falck Holding A/S has a controlling interest in the Group. Trading with other Group companies: Management fee paid 2 2 Management fee received 8 8 Interest received 6 1 management Related parties in Falck Holding A/S with significant influence include the Group's Executive Man-agement Board and Board of Directors and their close relatives. Related parties also comprise companies in which these individuals have material interests. Trading with Management was as follows: Warrant programme, Executive Management Board, as described in note 5 to the consolidated financial statements - -

Falck Holding A/S had no additional transactions with the members of the Executive Manage-ment Board, Board of Directors or other persons with significant influence other than the remuneration paid to the Management, stated in note 5 to the consolidated financial state-ments. Associates The related parties of Falck Holding A/S also include associates in which the company has significant influence. See "Legal entities" for a list of associates. There have been no transactions with associates.

16 Events after the balance sheet date

No events have occurred after the balance sheet date that have a material impact on the financial position of the parent company.






The parent company's financial statements are presented in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and additional Danish disclo-sure requirements for annual reports for accounting class C large, cf. the IFRS Order issued pursuant to the Danish Companies Act.

ImPlEmENTATIoN oF NEw FINANCIAl REPoRTING REGUlATIoNS See note 35 to the consolidated financial statements for a description.

ACCoUNTING PolICIESThe 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 35 to the con-solidated financial statements in the following respects:

DIvIDENDDistributions of retained earnings in subsidiaries are rec-ognised as income in the income statement of the parent company in the year in which the dividend is declared. An impairment 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 parent company financial statements. Cost includes the consideration 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 to the consolidated financial statements. Where the carrying amount exceeds the recoverable amount, the investments are written down to this lower value.

In the event of distribution of other reserves than retained earnings in a subsidiary, such distribution will be deducted from the acquisition price, if the distribution is in the nature of repayment of the parent company's investment.

Note

17 Accounting policies







Management’s statement

The Board of Directors and the Executive Management Board today considered and approved the annual report of Falck Holding A/S for 2013.

The annual report has been prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the EU and additional Danish disclosure requirements for annual reports. In our opinion, the accounting policies applied are ap-propriate, and the Group’s and the parent company’s financial statements give a true and fair view of the Group’s and the pa-rent company’s assets, liabilities and financial position as at 31 December 2013 and of the results of the Group’s and the parent company’s operations and cash flows for the financial period 1 January – 31 December 2013.

Furthermore, in our opinion, the Management’s review includes a fair review of developments in the operations and financial position of the Group and the parent company, the financial results for the year and the Group’s and the parent company’s financial position.

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

Copenhagen, 20 March 2014

Executive management Board:

Allan Søgaard Larsen Morten R. Pedersen President and CEO Deputy CEO

Board of Directors:

Lars Nørby Johansen Thorleif Krarup Steen HemmingsenChairman Deputy Chairman

Søren Thorup Sørensen Johannes Due Henrik Poulsen


ManageMent’s stateMent | Independent auditor’s report

management review | Consolidated financial statements | Parent company financial statements | stateMents | The companypar Man stateMent


To the shareholders of Falck Holding A/S

Report on the consolidated financial statements and parent financial statementsWe have audited the consolidated financial statements and parent financial statements of Falck Holding A/S for the financial year 1 January – 31 December 2013, which comprise the income statement, statement of comprehensive income, balance sheet, state-ment of changes in equity, cash flow statement and notes, including the accounting policies, for the Group as well as the Parent. The consolidated financial statements and parent financial statements have been prepared in accordance with International Finan-cial Reporting Standards as adopted by the EU and disclosure requirements of the Danish Financial Statements Act.

management's responsibility for the consolidated financial statements and parent financial statementsManagement is responsible for the preparation of consolidated financial statements and parent financial statements that give a true and fair view in accordance with International Financial Reporting Standards as adopted by the EU and disclosure requirements of the Danish Financial Statements Act and for such internal control as Management determines is necessary to enable the prepara-tion of consolidated financial statements and parent financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's responsibilityOur responsibility is to express an opinion on the consolidated financial statements and parent financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing and additional requirements under Danish audit regulation. This requires that we comply with ethical requirements and plan and perform the audit to obtain reasonable assur-ance about whether the consolidated financial statements and parent financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements and parent financial statements. The procedures selected depend on the auditor's judgement, including the assess-ment of the risks of material misstatements of the consolidated financial statements and parent financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation of consolidated financial statements and parent financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of ac-counting estimates made by Management, as well as the overall presentation of the consolidated financial statements and parent financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Our audit has not resulted in any qualification.

OpinionIn our opinion, the consolidated financial statements and parent financial statements give a true and fair view of the Group’s and the Parent’s financial position at 31 December 2013, and of the results of their operations and cash flows for the financial year 1 January – 31 December 2013 in accordance with International Financial Reporting Standards as adopted by the EU and disclosure requirements of the Danish Financial Statements Act.

Statement on the management commentaryPursuant to the Danish Financial Statements Act, we have read the management commentary. We have not performed any further procedures in addition to the audit of the consolidated financial statements and parent financial statements.

On this basis, it is our opinion that the information provided in the management commentary is consistent with the consolidated financial statements and parent financial statements.

Copenhagen, 20 March 2014

DeloitteStatsautoriseret Revisionspartnerselskab

Kirsten Aaskov Mikkelsen Anders DonsState Authorised Public Accountant State Authorised Public Accountant

Independent auditor's report


Management’s statement | independent auditor’s report

management review | Consolidated financial statements | Parent company financial statements | stateMents | The companypar auditors rep


Board of Directors, Executive Management Board and auditors

Steen Hemmingsen, born 1945Member of the boards of directors of: • Vestjysk Bank A/S (chairman)• Obel-LFI Ejendomme A/S• The EAC Foundation

Søren Thorup Sørensen, born 1965CEO of KIRKBI A/S, KIRKBI Invest A/S and Koldingvej 2, Billund A/S

Member of the boards of directors of: • K & C Holding (chairman)• Boston Holding A/S (chairman)• KIRKBI AG (deputy chairman)• INTERLEGO AG (deputy chairman)• Topdanmark A/S, Topdanmark Forsikring A/S and Danske

Forsikring A/S (deputy chairman)• LEGO A/S• LEGO Juris A/S• KIRKBI Invest A/S• TDC A/S• Koldingvej 2, Billund A/S• Merlin Entertainments PLC

BoARD oF DIRECToRS

lars Nørby johansen, born 1949Chairman

Member of the boards of directors of:• William Demant Holding A/S (chairman)• The Danish Growth Council (chairman)• Dansk Vækstkapital (chairman)• University of Southern Denmark (chairman)• Codan A/S and Codan Forsikring A/S (chairman)• Fonden for Entreprenørskab - Young Enterprise (chairman)• The Rockwool Foundation (deputy chairman)• Index Award A/S• Arp-Hansen Hotel Group A/S• Bornholms Mosteri A/S

Thorleif Krarup, born 1952Deputy Chairman

Member of the boards of directors of: • Exiqon A/S (chairman)• ALK-Abelló A/S • H. Lundbeck A/S • Lundbeckfond Invest A/S • The Lundbeck Foundation• Bisca A/S


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johannes Due, born 1949 Member of the boards of directors of: • The Fund for Better Working Environment and

Labour Retention (chairman)• The Royal Danish Academy of Fine Arts Schools of Architec-

ture, Design and Conservation (chairman)• Fonden til formidling af kulturarven Roskilde Domkirke

(chairman)• The Bikuben Foundation and Kollegiefonden Bikuben

(deputy chairman)• LB Forsikring A/S• Member of the Advisory Board of Danske Bank A/S

Henrik Poulsen, born 1967CEO of DONG Energy A/S

Member of the boards of directors of: • Chr. Hansen Holding A/S (deputy chairman)• ISS A/S and ISS World Services A/S• The Denmark-America Foundation• Member of the Advisory Board of Danske Bank A/S

EXECUTIvE mANAGEmENT BoARD

Allan Søgaard larsen, born 1956President and CEO

Member of the boards of directors of: • PensionDanmark Holding A/S and PensionDanmark A/S• Ambu A/S• The Central Board of the Confederation of Danish Industry

morten R. Pedersen, born 1968Deputy CEO

AUDIToRS APPoINTED BY THE GENERAl mEETING

Deloitte Statsautoriseret RevisionspartnerselskabWeidekampsgade 6DK-2300 Copenhagen Sby/Kirsten Aaskov Mikkelsen and Anders Dons State Authorised Public Accountants

The Board of Directors of Falck Holding A/S photographed together with the employee representatives on the boards of Falck A/S and Falck Danmark A/S (Jan Heine Lauvring, Henrik Villsen Andersen, Allan Rensgaard and Vagn Flink Møller Pedersen).


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Falck Holding A/SPolititorvet DK-1780 Copenhagen VDenmark

Tel.: +45 7033 3311

www.falck.comwww.falck.dk

CVR no. 33597045

Company information


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Legal entities in the Falck Group as at 31 December

Falck Holding A/S Denmark Falck A/S Denmark 100% Falck Danmark A/S Denmark 100% Falck Hjælpemidler A/S Denmark 100% Falck Treasury A/S Denmark 100% Falck Health Care Holding A/S Denmark 100% Falck Health Care A/S Denmark 100% Falck Dental Care ApS Denmark 100% Falck Luftambulance A/S Denmark 100% Falck Air AB Sweden 100% ActivCare A/S Denmark 100% ActivCare Privat A/S Denmark 100% Vikteam A/S Denmark 80% Falck JobService A/S Denmark 85% Falck Assistance A/S Denmark 100% Falck Air Ambulance A/S2) Denmark 50% North Securities A/S2) Denmark 49% Falck Fire Services A/S Denmark 100% Falck Fire Services DE GmbH Germany 100% Falck Fire Services CH AG Schwitzerland 100% Falck Fire Services BE NV Belgium 100% Falck Norge Holding AS Norway 100% Falck Redning AS Norway 100% Falck Emergency AS Norway 100% Falck Ambulanse AS Norway 100% Falck Norge Leasing AS Norway 100% Falck Health Care Norge AS Norway 100% Falck Services AS Norway 100% Falck Safety Services Holding A/S Denmark 100% Falck Safety Services A/S Denmark 100% Falck Nutec Management A/S Denmark 100% Falck Global Safety B.V. Netherlands 100% Falck Nutec AS Norway 100% Falck Nutec Ltd. UK 100% Nutec Centre for Safety Ltd.1) UK 100% Falck Onsite Limited UK 100% Onsite Training Services Limited.1) UK 100% Falck Nutec Trinidad and Tobago Limited Trinidad & Tobago 80% Nutec UK Ltd. UK 100% Nutec Belgium Holding BVBA1) Belgium 100% Nutec Belgium BVBA1) Belgium 100% Falck Nutec B.V. Netherlands 100% Marinesafety International Rotterdam B.V. Netherlands 100% MSTS Asia Sdn. Bhd. Malaysia Risktec (M) Sdn. Bhd. Malaysia 1 0% Falck Bestari Healthcare Sdn Bhd Malaysia 82% MSTS Asia (S'pore) Pte. Ltd. Singapore 100% Falck Nutec Malaysia Sdn. Bhd. Malaysia Falck BHV Operations B.V. Netherlands 100% Falck Safety Services Nigeria Limited Nigeria 51% Falck Prime Atlantic Limited Nigeria 51% Falck Caspian Safe LLC Azerbaijan 65% Falck Safety Services Canada Ltd. Canada 55% Falck Safety Services Belgium BVBA Belgium 100% Falck Nutec Brasil Participacoes Ltda Brazil 100% Falck Nutec Brasil Treinamentos em Segurança Marítima Ltda Brazil 100% Southfield Ltd Thailand 50% Falck Nutec (Thailand) Ltd Thailand 65%

Company name Country Equity interest


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Falck USA Holdings, Inc USA 100% Falck Alford Holdings, Inc USA 80% Alford Services, Inc USA 100% Alford Safety Services, Inc USA 100% Haztec Services - West Indies, LLC USA 100% Haztec Services St. Lucia Ltd St. Lucia 100% Haztec Services Trinidad Limited Trinidad & Tobago 100% Occupational Safety Training, Inc. USA 100% Falck Alford International BV Netherlands 100% Falck Holding de México, S.A. de C.V. Mexico 100% Falck Safety Services de México, S.A.P.I. de C.V. Mexico 55% Falck Nutec Vietnam Limited Vietnam 88% Falck Safety Services LLC UAE 49% Falck Global Assistance Norway AS Norway 100% Falck Followit Norge AS Norway 100% Falck Sverige Holding AB Sweden 100% Falck Investment Sverige AB Sweden 100% Falck Räddningskär AB Sweden 100% Falck Security AB Sweden 100% Falck Forsäkring AB Sweden 100% Falck TravelCare AB Sweden 100% Falck Ambulans AB Sweden 95% Falck Räddningstjänst AB Sweden 100% Falck Services AB Sweden 100% Svensk Sjöambulans AB2) Sweden 50% Falck Ensihoito Oy Finland 100% S Reg Holding A/S Denmark 100% S Reg AB Sweden 100% Falck Secure AB Sweden 100% S Reg A/S Denmark 100% S Reg Oy Finland 100% S Reg AS Norway 100% Falck Health Care Sverige Holding AB Sweden 100% Falck AM Health Care AB Sweden 100% Falck Aktiv Arbetsmedicin AB Sweden 100% Falck Healthcare AB Sweden 100% Skandinavisk Hälsovård AB Sweden 100% Svensk Närsjukvård AB Sweden 100% Doc Care AB Sweden 100% Ofelia Vård AB Sweden 100% Ofelia Vård AS Norway 100% Falck USA, Inc. USA 98% FCA Corp. USA 87% Care Ambulance Service, Inc. USA 100% Falck EMS Corp. USA 97% Lifestar Response Corporation, Inc. USA 100% Lifestar Response of Alabama, Inc. USA 100% Medibus, Inc. USA 100% STAT Equipment Corp. USA 100% STAT EMS, LLC USA 51% Bi-County Ambulance & Ambulette Transport Services Corp. USA 100% Lifestar Response of New Jersey, Inc. USA 100% Lifestar Response of Maryland, Inc. USA 100% Access Transport Services Holding, Inc. USA 100% Access on Time Language Services LLC USA 100% Home Care Equipment, Inc. USA 100% Robinson's Ambulance & Oxygen Service, Inc. USA 100% Falck Southeast Corp. USA 96% Cape Cod Medica Enterprises, Inc USA 100%







American Ambulance, Inc. USA 100% Falck Southeast II Corp. USA 96% Transitional Health Solutions LLC USA 100% Falck Northern California Corp. USA 100% Falck Northwest Corp. USA 100% Falck Investments Finland Oy Ab Finland 100% Falck Oy Finland 100% Falck Autoabi OÜ Estonia 100% Falck Benelux NV Belgium 93% Falck Investments NV Belgium 88% Falck Medical Services LLC UAE 49% Falck Eurasia B.V. Netherlands 100% Falck Russia Holding B.V.2) Netherlands 49% Falck Medical Vladivostok LLC Russia 100% Beijing Falck Rescue Consulting Services Co., Ltd China 100% Falck Kazakhstan LLP Kazakhstan 100% Open Clinic LLP Kazakhstan 80% Falck Fire Services Rus LLC Russia 100% Falck Foundation VZW Belgium 100% Falck Medycyna Sp. z o.o. Poland 100% Starowka Sp. z o.o. Poland 76% Falck SK a.s. Slovakia 93% Falck Emergency AS Slovakia 51% Falck Záchranná a.s. Slovakia 100% Falck Academy s.r.o. Slovakia 100% Falck Healthcare a.s. Slovakia 100% Falck Pharma s.r.o. Slovakia 100% Falck Fire Services a.s. Slovakia 100% Falck CZ a.s. Czech Republic 93% Falck SCI, S.A. Spain 65% Falck Emergency Spain, S.L. Spain 65% Falck VL Servicios Sanitarios, S.L. Spain 75% Falck Servizi Industriali di Emergenza S.r.l. Italy 65% Falck France SAS France 100% Falck Holding B.V. Netherlands 100% Falck B.V. Netherlands 100% Falck Fire Services NL B.V. Netherlands 100% Falck AVD B.V. Netherlands 100% AVD-ICT B.V. Netherlands 100% Safety Center Zuid Holland B.V. Netherlands 100% Safety Center Zuid Holland c.v. Netherlands 52% Safe Building B.V. Netherlands 100% Falck BHV B.V. Netherlands 100% AVD Consultancy N.V. Belgium 100% Falck Brasil AVD Participações Ltda. Brazil 100% Falck Brasil Plano de Saúde Ltda. Brazil 100% Falck Brasil 747 Participações Ltda. Brazil 100% Falck Brasil FF Participações Ltda. Brazil 100% Falck Panama Holding S.A. Panama 100% EMI Holdings Management S.A. Panama 63% EMI Foreign Holdings 1 S.A. Panama 100% EMI Foreign Holdings 2 S.A. Panama 100% EMI Foreign Holdings 3 S.A. Panama 100% EMI Foreign Holdings 4 S.A. Panama 100% Servicio Emergencias Regional SER S.A. Panama 100% Falck Fire & Safety do Brasil S.A. Brazil 65% Empresa de Medicina Integral EMI S.A. Servicio de Ambulancia Prepagada - Grupo EMI S.A. Colombia 100% EMI El Salvador S.A. de C.V. El Salvador 100%







Inversiones EMI Worldwide S.A. Panama 100% EMI Panama S.A. Panama 100% EMI Ecuador S.A.- Emergencia Medica Integral Ecuador 100% Perses S.A. Uruguay 100% Portovenus S.A. Uruguay 16% EMI Venezuela Holding S.A. Panama 100% Emergencia Medica Integral EMI Centro S.A. Venezuela 100% Centro Medico Integral CEMICA S.A. Venezuela 100% Falck Chile Holding S.A. Chile 100% Falck Chile S.A. Chile 80% Falck Safety Services Limitada Chile 100% Falck Capacitacion Limitada Chile 100% Falck Rettungsdienst GmbH Germany 90% G.A.R.D. Verwaltungsgesellschaft für Ambulanz und Rettungsdienst mbH Germany 100% G.A.R.D. Gesellschaft für Ambulanz und Rettungsdienst Cuxhaven GmbH Germany 100% G.A.R.D. Gesellschaft für Ambulanz und Rettungsdienst Hamburg West mbH Germany 100% GUARD Hospital Service GmbH Germany 100% G.A.R.D. Gesellschaft für Ambulanz und Rettungsdienst Bremen mbH Germany 100% ASN-Ambulanz-Service-Nord GmbH Germany 100% G.A.R.D. Gesellschaft für Ambulanz und Rettungsdienst Hamburg-Ost GmbH Germany 100% G.A.R.D. Arbeitsgemeinschaft Rettungsdienst Dresden GmbH Germany 100% G.A.R.D. ArGe Dresden GbR Germany 100% G.A.R.D. Gemeinnützige Ambulanz und Rettungsdienst GmbH Germany 100% GUARD Gesellschaft für unabhängige ambulante Rettungsdienstleistungen GmbH Germany 100% G.A.R.D. Gesellschaft für Ambulanz und Rettungsdienst NRW mbH Germany 100% K&G Taxi-Krankentransporte und Dienstleitungs GmbH Germany 80% G.A.R.D. Beteiligungsgesellschaft für Ambulanz und Rettungsdienst mbH Germany 100% promedica Rettungsdienst GmbH Germany 90% RTD Consulting GmbH Germany 100% ASG Ambulanz Leipzig GmbH Germany 100% promedica Rettungsdienst Bremehaven/Bremen GmbH Germany 100% promedica Rettungsdienst Walbeck-Frankenberg GmbH & Co. KG Germany 70% Euro-Med Einkaufsgemeinschaft GmbH Germany 63% promedica Services GmbH Germany 100% G.A.R.D. Ambulanzflugdienst GmbH Germany 50% Brava Holding GmbH2) Germany 25% Kranken-Transport Herzig GmbH Germany 100% KS-Medi-Service GmbH Germany 100% Falck Österreich GmbH Austria 100% Falck Yardim Hizmetleri Limited Şirketi Turkey 100% Falck Pty Ltd Australia 55% Falck Ambulance Services Australia Pty Ltd Australia 100% Falck UK Limited UK 100% Falck EMS UK Limited UK 100% Medical Services Limited2) UK 45% Falck Emergency Services UK Ltd. UK 93% Frontline Fire International Limited UK 100% Falck Fire Services UK Limited UK 100% Falck Emergency Asia Pte. Ltd. Singapore 100% Falck India Limited UK 93% Falck Services Limited Mauritius 100% Falck India Pvt. Ltd. (India) India 100% Falck Services Pvt Ltd. (India) India 100% Falck Fire Services S.R.L Romania 93% Falck South Africa Holding (PTY) LTD South Africa 100% Med1 (Private) Limited2) Sri Lanka 50% A C Trafik A/S Denmark 100% KPC Ejendomme af 6. juni 2002 A/S2) Denmark 25%


(1) The company is at present without activity (dormant)(2) Associated company





Definitions of ratios

The ratios are basically calculated on the basis of the annual report and the Group’s accounting policies. The Falck Group cal-culates a number of ratios on the basis of the financial-highlight figures in “Financial highlights and key ratios” on page 2. The definitions of those ratios are stated below.

organic growthGrowth in external revenue in local currency relative to the preceding year adjusted for:

• Acquisitions: Revenue relating to acquired entities or ope-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 when revenue is recognised in the comparative period for the preceding year.

• Divestments: Revenue from the preceding year relating to entities 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: Material contracts entered into before or during the year after the acquisitions, where Falck has had a material impact on the contract in question, are recognised in revenue and considered organic growth. Any material isolated operati-ons which Falck terminates or public-sector customers' insour-cing of tasks without invitations for tender are considered divestments.

• Redefinition of segments: Revenue related to entities that are redefined to another segment are accounted for as acqui-sitions and divestments, as the case may be, in the respective business segments.

EBITA margin Operating profit before costs and amortisation from business combinations and exceptional items (EBITA) as a percentage of revenue.

Effective tax rateTax charged in respect of the financial year as a percentage of profit before tax.

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 equityProfit for the year attributable to Falck as a percentage of ave-rage equity excluding non-controlling interests.

Net operating assetsNet operating assets excluding goodwill defined as trade recei-vables and other current operating assets plus property, plant and equipment and intangible assets (excluding goodwill), less trade payables, other payables and other operating liabilities.

Net interest-bearing debt to EBITDANet interest-bearing debt and purchase consideration payable divided by EBITDA. EBITDA has been normalised for the full-year effect of acquisitions made during the period.

Free cash flowOperating profit before costs and amortisation from business combinations and exceptional items (EBITA) adjusted for non-cash operating items and change in net operating assets.

Cash conversion rateFree cash flow as a percentage of operating profit before costs and amortisation from business combinations and exceptional items (EBITA). The rate of operating profit before costs and amortisation from business combinations and exceptional items (EBITA) to the free cash flow (cash conversion rate) shows the Group’s ability to generate cash flows from operating activities after investments in intangible assets and property, plant and equipment and cash that must be tied up in working capital in order to generate growth.

Normalised profit after taxProfit for the year less costs and amortisation from business combinations and exceptional items and tax thereon.


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Design and graphic production: meyer & bukdahl as


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Falck Holding A/SPolititorvet1780 Copenhagen VDenmark

Tel.: +45 70 33 33 11www.falck.comwww.falck.dkCVR no. 33 59 70 45

Key figures Foreword Highlights Business areas CSR Financial … · 2014. 4. 11. · Kazakhstan...

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