Annual Report 2001/2002 25 Statement on the Annual Report 51 Proﬁ T and Loss Account 26 Report for the Financial Year 52 Balance Sheet

2001/2002 Contents

4 COWI strengthened with two new acquisitions 18 Intellectual Capital Report 2001/2002

6 Kampsax—new member of the family Portraits COWI at work 24 Diplomat on the Metro

7 Public transport around Copenhagen 39 Judge of human character

8 Copenhagen harbour to have wider appeal 50 Building schools is fun

10 Project room ﬁ ne-tunes new major abattoir 57 Know your municipality

12 10 years with energy in Lithuania 70 Living with the environment

12 Wing factory in record time COWI’s consultants are highly educated and used to working in 14 New urban centre emerges from the asphalt 71 Diagrams and maps professional networks. Six out of ten are experienced projects managers. One in four has been in charge of 16 New hospital puts the patient in the centre 74 COWI’s executive management international projects. Read more in COWI’s Intellectual Capital Report, page 18-23. Annual Report 2001/2002 25 Statement on the Annual Report 51 Proﬁ t and Loss Account 26 Report for the Financial Year 52 Balance Sheet

27 Group key fi gures and fi nancial ratios 54 Statement of changes in shareholders’ funds 40 Financial review 56 Cash Flow Statement 42 Accounting policies 58 Notes COWI strengthened with two new acquisitions The year’s fi nancial result is the best for several years. COWI will continue to grow through acquisitions and business development

With the acquisition of the German railway market leader in the services it provides. DKK 2.1 billion. Klaus H. Ostenfeld stresses Sound fi nancial foundation the wake of the events in New York on of Northern, Central and Eastern Europe,” consultant, ETC, and the renowned Danish COWI is aiming for a long-term rise in turn- that COWI has to grow if it is to continue to The growth is based on a solid fi nancial foun- 11 September 2001 and the Danish govern- he says. consultant group, Kampsax, COWI has over from DKK 1.5 billion in 2000/01 to provide its clients with quality consultancy dation. At the end of the fi nancial year, COWI ment’s cutback in public spending, he regards Although acquisition and business devel- taken two major steps this year towards DKK 2.8 billion in 2005/06. In the same on its selected markets. “The consultancy could report the best results for several years. the year’s result as satisfactory. opment can have a short-term negative effect realising its corporate objectives, declares period, profit ratio will be increased market, both in Denmark and abroad, is Profi ts on primary operation rose by 14 per on earnings, COWI expects the sharper focus Klaus H. Ostenfeld, COWI’s Managing from 2.6 per cent to 5-6 per cent—and to now in a phase of strong consolidation, with cent to DKK 50.8 million and profi t before Growth in the north and east on profi tability of existing business, together Director since May 2000. 6-7 per cent in the long term, reaching competition increasing. Profi table growth is tax by 25 per cent to DKK 56.8 million. In 2002/2003, COWI will continue to realise with new investment, to generate a positive COWI’s corporate vision is based on two international top performance levels. In the vital if we are to attract the best clients and Net turnover rose by 12 per cent to DKK its corporate strategy. Klaus H. Ostenfeld ex- development in earnings. fundamental elements: to be perceived by same period, staff numbers will rise from the best staff—and if we are to develop 1,720.4 million. pects growth both as a result of acquisitions the market as one of Northern Europe’s 2,200 to 4,000. new consultancy services. These are deci- Klaus H. Ostenfeld emphasises that COWI and from the development of new business leading, multi-disciplinary consultancy com- As a result of the two acquisitions, COWI sive factors to maintaining and extending has achieved its fi nancial targets year after areas. “One of our actions will be to strength- panies by 2005; and to be an international now has 2,800 employees and a turnover of our role as market leader,” he says. year. And with the weak market following in en our presence on the consultancy markets

“COWI will continue to grow as a result of acquisitions and develop- Key fi gures for the Group in DKK million ment of new business areas,” 1997/98 1998/99 1999/00 2000/01 2001/02 says Managing Director Klaus H. Net turnover 1,355.0 1,330.7 1,379.7 1,533.2 1,720.4 Ostenfeld. Operating profi t 15.5 (33.7) 8.1 44.4 50.8 Profi t before tax 39.3 (18.2) 23.9 45.3 56.8 Balance 981.8 963.0 1,059.5 1,070.2 1,082.4 Shareholders’ funds 330.9 323.2 331.7 360.5 393.1 Equity ratio (pct.) 33.7 33.6 31.3 33.7 36.3 Operating margin (pct.) 1.1 (2.5) 0.6 2.9 3.0

4 5 Kampsax— new member COWI has made calculations for four of the family public transport al- WORKCOWI AT It makes an exten- ternative solutions sive analysis much easier and more With the acquisition of Kampsax A/S in Kampsax has activities within infrastructure, Every day, some 70-80,000 people drive to fl exible because much of the exper- June 2002, the COWI Group gained a urban environment, green environment, and from work on the Ring Road 3 around tise required is in- prominent new member of the family. training, land registration, building, con- Copenhagen. More and more workplaces house, believes Head of Department Kampsax made its name in the 1930s, struction, geo-technology, mapping, devel- are moving out of the city to satellite munici- Preben Vilhof. when it won great renown for its leading role opment and sale of geographical standard palities, which is putting extra pressure on in the construction of the Trans-Siberian rail- products, geographical information systems the infrastructure. To ensure that the inhab- way, linking the Caspian Sea with the Persian (GIS) and services, including pipeline and itants of Copenhagen can get to work Gulf. The company was founded in 1917 by cable registration. These activities will sup- and home again as speedily as possible, an the three engineers Per Kampmann, Jørgen plement and reinforce the specialist areas in inner ring with urban railway, is being built Public transport around Saxild and Otto Kierulff. Through the cen- the entire COWI Group. and a system of express buses instituted in tury, it carried out projects in more than and around Copenhagen. But that will not 100 countries for a list of clients that in- Market-leading environments be enough to solve the problem and the cludes governments, international develop- One of the results of the merger of COWI Greater Copenhagen Authority (GCA), Co- Copenhagen ment organisations and private clients. and Kampsax is that we become the market penhagen County and the Ministry of Trans- leaders in the following consultancy areas in port are looking to enhance public transport Half from abroad Denmark—soil and groundwater, environ- across the city. As a result, COWI has pre- Vilhof of Public Transport. “What has been Planning Department, was responsible for plex problem by the agreed time,” says GCA In recent years, Kampsax has worked exclu- mental due diligence, geographic informa- pared a report containing four models for an really interesting is the close cooperation be- adapting the solutions to the local environ- Planning Director Jes Møller. “The project sively as a consultancy company. At the time tion, building, the environment and energy. improved public transport solution between tween our external partners and specialists ment and evaluating traffic safety. Our control was fantastic.” of the acquisition, Kampsax had more than It will also produce one of the largest devel- the suburbs of Glostrup and Lyngby. from many different COWI departments and transport economists have made socio- 400 full-time employees and some 270 opment planning consultancy organisations The report was completed in partnership the client.” economic calculations; our road, bridge and The four alternatives project staff in three business areas—inter- in Northern Europe. The two companies will with the French engineering company “Planning public transport is one of the tunnel specialists have costed road expan- The report is now on the client’s desk, national consultancy, engineering consul- join forces in the autumn of 2002, with of- SEMALY, experts in light rails, the Danish department’s core activities and we have sions, bridges, tunnels and stations; and awaiting further study, including the pos- tancy and geographic information. Like COWI, fi ces in the capital and around the country. rail consultants ScanRail, which produced worked together with SEMALY before. It the environment department has assessed sibility of extending the transport system Kampsax generates more than half its turn- calculations with GIS (geographical informa- brings experience from French and German air and noise pollution. It makes such an ex- north of Lyngby and south of Glostrup. All over of DKK 400 million abroad. tion systems), and Europlan Arkitekter, towns and is known for its elegant solutions, haustive analysis much easier and more fl ex- four alternatives are included in the new specialists in illustrating traffi c in towns. in terms of both materials and construction. ible because much of the expertise required study. Kampsax A/S, rich in tradition, is the newest member The analysis was conducted in close coop- The Danish architect fi rm Europlan is expert is in-house. It also means we can complete Preben Vilhof points out that they must of the COWI Group. eration with the clients, who took part in in urban development and freehand illustra- the assignment faster than if we had to fi nd be seen as four alternatives, not four fortnightly progress meetings and more tion, which is a cheaper solution than com- the specialists externally. In this case, it was projects. “Possibilities for public transport strategic steering group meetings, where puter graphics.” particularly fortunate because we had only are infi nite. We have made some choices wide-reaching issues such as converting six months to complete the analysis, which and analysed merging with existing infra- traffi c lanes for cars to exclusive public In-house expertise meant that we were pressed for time. Whilst structure, traffi c, environment and econo- transport lanes were discussed. “With our external partners, we have brought it was running, 15-20 people were working my, and described and illustrated them in to the project international experience and on the project simultaneously,” concludes an easily digestible report.” Close cooperation special expertise that we do not have. But Preben Vilhof. “It has been an exciting and challenging we have also drawn on many of our own “It was a tight deadline and we were im- Head of Department Preben Vilhof, @ [email protected] project,” says Head of Department Preben specialists. Our “twin department”, Traffi c pressed by COWI’s ability to solve a com-

6 7 COWI Regional Director Phyllis Hjelmdal Larsen has set up a harbour group to coordinate the Copenhagen harbour company’s various projects in the Port of Copenhagen. This allows the client, Karl-Gustav Jensen of the Port of Copenhagen, to maintain a dialogue to have wider appeal with COWI at the strategic level. set up a number of working groups that are 2004, and will house the new offi ces of the to produce a report on how the citizens of law fi rm Plesner, Svane og Grønborg. COWI Copenhagen could get most out of living so is responsible for all engineering disciplines close to the water. They will take a look at in the project, in which TK-Development and how to provide better access and bathing the Port of Copenhagen are joint clients. facilities, more houseboats and outdoor attractions near the water. Mutual confi dence “Within a few years, the people of The project is the Port of Copenhagen’s Copenhagen will see their harbour undergo largest investment since the development of considerable change. In the past, the city the Free Harbour. The new building is ex- has rather turned its back on the harbour— pected to be completed at the same time as the future will bring it much more to the the opening of a new three-dock ferry termi- front. It will have a much wider appeal and nal in the South Harbour. The new terminal COWI AT WORKCOWI AT not be the exclusive domain of those living will be the home base of DFDS’s ships to in the new fl ats with a water view. The idea Norway, Poland and Bornholm. COWI has is that there should be something for every- been consultant on the ferry terminal since one to enjoy in the area,” says Karl-Gustav the project began in 2000, responsible for Jensen, Department Head at the Port planning, construction, environmental studies, Authority. traffi c planning and design and construction supervision in the area. Holistic consultancy In addition to the terminal, COWI is COWI is engaged in several projects for the also consultant on the forthcoming frontier Port of Copenhagen within environment, in- station and ticket offi ce. COWI has been frastructure, construction and works. COWI responsible for all the traffi c planning of the has set up a special harbour group to coordi- North and South Harbours where several nate services, transfer knowledge and de- major residential buildings are planned on velop ideas. Karl-Gustav Jensen believes this the waterfront and man-made islands. is an important step, as the Port will not have Analyses have been made of the traffi cal to maintain contact with six different COWI impact on the arterial road along the consultants as it used to, but can restrict its harbour and COWI has also devised a sketch communication to a more overall plan. project for a new access road from the Free “We have set up the Port group because Harbour to Århusgade. we are striving to provide holistic consultancy “COWI is one of a handful of consultants and coordinate our services so that we appear in Denmark who can embrace several disci- as a single entity. But the group will also en- plines at the same time. But selecting a sure multi-disciplinary solutions,” says COWI consultant is very much about personal Regional Director Phyllis Hjelmdal Larsen. relationships, about mutual confi dence. You The cranes are working at top speed in the In August 2000, the Port of Copenhagen One of the more notable buildings COWI is should be able to trust each other,” says COWI is striving to provide the Port of Copenhagen and tourists and inhab- and the Municipality of Copenhagen jointly involved with is a 16-storey high-rise tower in Karl-Gustav Jensen. Port of Copenhagen with holistic itants will soon get more enjoyment from the presented a series of plans for the future the Southern Free Harbour. The new 60-me- large waterfront. An entirely new urban area development of the harbour area. The deci- tre building will tower over all its neighbours Regional Director Phyllis Hjelmdal Larsen, @ [email protected] consultancy and be a creative is being developed along the harbour, with sion was made to give highest priority to the and become something of a landmark when a mix of homes, offi ces and recreational North Harbour, the inner basins and the sailing into the harbour. The building is ex- partner in its development facilities. South Harbour and the two partners have pected to be ready for occupancy in February

More citizens of Copenhagen are to enjoy the benefi ts of living close to the waterfront of the Port of Copenhagen. A new urban area is 8 to be developed along the harbour. Project room fi ne-tunes 10 years with new major abattoir energy in Lithuania Multi-disciplinary assignment The assignment is highly multi-disciplinary. The team of consultants alone comprises COWI AT WORK AT COWI Lithuania is revising its energy policy representatives of several companies. COWI is main consultant, advising on buildings, in- prior to EU membership. COWI assisted stallations, processing equipment and IT, with Arkitektgruppen Aarhus K/S and Tano in establishing the ground rules Food Consult A/S as sub-consultants. SFK Meat Systems is advising on slaughtering Danish Crown has established a shared equipment, ATTEC Danmark A/S on butch- For the last ten years, COWI and its subsidiary, a liberalised market. The analysis shows project room for the ering of the meat and UNIVEYOR A/S on COWI Baltic, have been working on the de- that energy cooperation between the Baltic building of a new major packing and palleting. velopment of the energy sector in Lithuania states would make reconstruction of the abattoir. It ensures fast communication between COWI’s work ranges from environmental so that it can meet the liberalisation and en- sector more profi table for everyone con- i.a. Danish Crown Chief approval (evaluating the impacts of noise, vironmental demands of the EU before its ac- cerned, a conclusion that is now being de- Project Manager Søren Eriksen (left) and COWI emissions and transport) and construction cession. Together with the Lithuanian En- veloped further. Chief Project Manager and works tendering to responsibility for ergy Institute and the Danish and Lithuanian Mogens Dahl Pallesen excavations, operational and maintenance ministries and electricity companies, COWI Pilot plant (right). systems, authority approval, electrical in- has created a solid foundation for the re- The energy strategy includes a move to con- stallations and development of new IT quired reforms in the sector. centrate on combined heat and power systems that trace the origin of the animals. “Activities were intensifi ed in 1999 when plants, and the Danish Energy Agency has Neighbours have also been consulted. the EU put pressure on Lithuania to revise decided to co-fi nance a pilot plant. In effect, To ensure constructive teamwork with local its national energy strategy and draw up a it is an actual subsidy of DKK 30 million and residents, Danish Crown has taken the ini- plan for closing down Ignalina nuclear pow- although the government has cut back on tiative of setting up a contact group consisting er station,” explains Chief Project Man- aid to Central and Eastern Europe all round, of interested residents and local land owners. ager Else Bernsen from COWI. Based partly this commitment will be respected. Consultants, architects and process consultants have joined Finally, Danish Crown has set up more on the report, “Least Cost Power Sector In July, COWI completed a feasibility forces at a shared project room at Danish Crown. The result: than ten working groups that will assess the Analysis” made by COWI in 1999, Lithuania study for the combined heat and power ability of the abattoir’s production equipment decided to shut down one of the power sta- plant, which will cost about DKK 250 million, Better communication and effi ciency to meet the demands of the future. The tion’s two reactors in 2004 and has recently and suggested possible locations. The pilot working groups consist of staff from Danish elected to shut down the second in 2009. plant could be in operation in 2005. Crown and COWI, with representatives from Engineers’ calculations and architects’ With a total budget of DKK 2 billion, Danish communication and decision pathways will organisations such as the Danish Meat Re- Sector reform New environmental demands drawings are arranged in piles on the desk. Crown intends to build the best and most be shorter and fewer memos will need to be search Institute and Veterinary Control. “The closing of Ignalina and liberalisation of Membership of the EU brings with it more Despite the appearance of chaos, there is sophisticated abattoir in the world, concen- written. Letters and e-mails are replaced by “The project has been very multi- the electricity sector poses several ques- stringent effi ciency and environmental im- complete control of every sheet of paper. trating on the needs of the staff, animals personal contact and problems are solved disciplinary, both internally in COWI and in tions,” she says. What will be the future of pact demands for the Lithuanian energy sec- For the last eighteen months, some 40 en- and the environment. When the 76,000m2 on the spot. our collaboration with the client, architects the existing producers, the power stations? tor. COWI has therefore prepared an gineers, architects and process consultants production plant is fi nished in 2004, it will “We chose to set up a shared project and working groups. That it has proceeded What will the competitive situation be like? action plan for all major generating plants in have sat side by side in a shared project have a capacity of 75,000 pigs a week. room to complete the job in the best pos- without problems is mostly because they What new plants are needed? What will re- the country and is currently busy renovating room at the client, Danish Crown, to prepare There are several advantages in placing sible way. It is important for us to have our have shared the same project room. By work- forms mean to the consumer and society as certain district heating system in Lithuania, the construction and fi tting out of a new ab- all the consultants in the same project room. consultants close to our own staff - we being so intensively, you get a better result at a a whole? Together with Elkraft System and a task the company is also undertaking in attoir in Jutland. The work is taking place in It gives the unique opportunity to tackle lieve it ensures fast and trouble-free com- lower price,” say COWI Chief Project Managers the Lithuanian partners, COWI has therefore many other countries in Eastern Europe. close physical proximity to Danish Crown’s major and complex assignments speedily munication between client and consultant. Jan Stockmarr and Mogens Dahl Pallesen. prepared a detailed analysis of the existing own project organisation of fi ve people who and effi ciently, which boosts the team spirit And we have been proved right,” says electricity sector and defi ned the technical Chief Project Manager Else Bernsen, @ [email protected] are working exclusively on the new abattoir. among those taking part. It also means that Danish Crown Project Manager, Søren Eriksen. Chief Project Manager Jan Stockmarr, and economic perspectives of the future in @ [email protected]

COWI Chief Project Manager Jan Stockmarr.

10 11 “COWI has the comprehensive knowledge bank of a large company, but the local knowledge and proximity of a small company,” says Søren Lundby, Chief Project Manager at A. Enggaard. COWI’s Ervin Haukrogh was Project Manager in the tender phase and Kristen Nørgaard during the design and construction. COWI AT WORKCOWI AT

When the managing director of the wind tur- of the building process and called on its bine manufacturer Bonus Energy A/S visited multi-disciplinary expertise. the building site outside Aalborg in the spring to see how things were going with Knowledge bank and local knowledge the new wing factory, he was met with the “COWI’s advantage is that it has the compre- words, “Things are going fi ne. We’re twenty hensive knowledge bank of a large company, minutes ahead of schedule.” but the local knowledge and proximity of a Construction of the 15,000m2 factory small company,” says Søren Lundby, Chief has gone unusually fast. Building began in Project Manager at A. Enggaard. January, the roof went on 50 days later, and Multi-disciplinary expertise has been par- at the end of June the stores and production ticularly useful in areas such as geotechnics, hall were in operation. In time for Bonus the environment, pavements and acoustics. Energy to be able to produce extra-strong As the fl oor of the factory would have to with- wings for the new wind turbine park south of stand heavy loads, COWI drew on expertise in the island of Lolland in 2003. Aalborg from the department that normally Building went so fast that design work designs pavements at airports. had to be carried out in parallel with “Both internally, in terms of the teamwork construction. Getting round that problem between the contractor and the architect, and required close teamwork between the externally, the multi-disciplinary work process contractor A. Enggaard A/S, the architects will be the way of working in the future. Søren Jensen A/S and COWI, consultant on Knowledge sharing will be the key word when all engineering disciplines on the building we are to ensure the best technical and fi nan- and civil works. As early as the tender cial solutions for major assignments,” says stage, COWI’s regional office in Aalborg COWI Chief Project Manager Ervin Haukrogh. harnessed the team to produce the best possible bid for the wing factory. COWI thus Chief Project Manager Ervin Haukrogh, @ [email protected] benefi ted from the contractor’s knowledge Wing factory in record time New wing factory in Aalborg will be fi nished with no delays. Special demands on cooperation between consultant and contractor

Construction of the 15,000m2 wing factory in Aalborg has gone unusually fast. Building began in January— 12 at the end of June, the stores and production hall were put into operation. New urban centre emerges from the asphalt

COWI AT WORKCOWI AT A mix of commercial and residential buildings will bring greater vitality to new urban centre in Jutland

The hot asphalt is still steaming as it is area will thus be alive and populated in the rolled fl at to form a car park in Havneparken daytime, evenings and weekends. on the old Tulip ground between the railway One 6,000m2 offi ce block is already station and harbour in Vejle. The area is fi nished and the fi rst occupants are about to being transformed into a new commercial move in. The rest of the area is still a huge and residential area, a centre for consul- building site. But when the old Tulip site is tancy and knowledge. fi nished in fi ve years’ time, there will be a Since the Tulip meat processing business 60-metre, 19-storey high-rise building with moved its factory to the outskirts of the town 75 luxury fl ats. Some of the existing build- COWI Project Manager Knud more than ten years ago, the 35,000m2 ings have been renovated and are now Eigil Kruse has worked closely site has been deserted. With a panoramic occupied, mostly by small IT companies and with KPC Byg Project Manager Keld Korshøj on the transforma- Four-storeyed knowledge centre view of Vejle Fjord, the site is attractive and a section of Vejle Business School. tion of this old Tulip site in Vejle over the years there have been several ini- The project has been very much a multi- to a new part of town. tiatives to develop it. Nothing came of them, disciplinary venture and from COWI special- Five companies are building joint knowledge centre however, until KPC Byg bought the land from ists in environment, roads and public works, Vejle Municipality in 1999. construction, plumbing and electrical in- A new consultancy and knowledge centre ing resources; economy is one and being ers and partners. This is achieved partly “Havneparken means a great deal to Vejle stillations have been involved. The work is about to see the light of day. Five private able to draw on each other’s knowledge and through specialist seminars addressing —it will change the town completely. The was carried out in close teamwork with the knowledge companies are now moving into consultancy another. This is a clear advan- issues relevant to society, presenting new new homes and offi ces will inject new vital- client KPC, whose Project Manager, Keld the new four-storey building in Havneparken tage for the customers,” says COWI Project knowledge developed in the companies, ity to an area that has long been something Korshøj, acknowledges that they had great in Vejle with many shared facilities. Manager Knud Eigil Kruse. new products and new services. But there of a ghost town,” says Project Manager Keld demands to the building—which COWI Among these are the canteen and the must also be room for multi-disciplinary Korshøj, KPC Byg. has met in full. internet portal that provide a platform with Knowledge shared with customers issues aimed at further training of own “We make every effort to regard this an external window facing the market and Apart from COWI, the new tenants are staff. The shared facilities also include a Training centre and housing associations close teamwork as a learning situation for an internal window facing the employees. COLLIERS Hans Westergaard, Bent Skov & combined canteen and lecture hall, and the Since COWI team, contractor (KCP) and everyone concerned and use the experience The occupants include a consultant, an Partnere Advokataktieselsskab, BDO Scan- possibility of setting up facilities for semi- architects (Westergaard and CUBO) won a we are gaining on designing the next build- estate agent, a lawyer, an accountant and a Revision and Amtssparekassen Fyn. KN nars and training courses. Finally, there is to concept competition for how to use the ing in Havneparken. By keeping the same bank. But although they each have their own Rengøring is responsible for canteen serv- be a Friday-café and a common events area, a new part of town is emerging, with a project team, we have a better understand- specialisation, they have the best framework ices, cleaning and similar activities. committee. mix of commercial and residential buildings. ing of each other and thereby the actual for collaboration and knowledge sharing. COWI helped develop the concept for And of course, the companies will hold a The idea is to tailor building design for needs of the client,” says COWI Project “It is very unusual to share facilities like the shared building, in which the compa- joint housewarming arrangement. knowledge companies, training organisa- Manager Knud Eigil Kruse. this. But there are many advantages in pool- nies’ knowledge is shared among custom- tions, housing associations, pension fund www.havneparken1vejle.dk housing and up-market owner fl ats. The Project Manager Eigil Kruse, @ [email protected]

14 15 To create the ﬁ rst fully New hospital focuses on patient-oriented hospital in Europe, COWI Divisional Director Lars-Peter Søbye (right) works closely together with Director Bo Jessen, improved patient care Århus County Hospital.

Bo Jessen has been the director of Århus for different kinds of treatment, with all the Søbye. “The fi rst phase of about 9,000 m2 County Hospital for seven years. During that risks of a breakdown in communications. In is in the detail planning stage and will be time, it has become increasingly clear to the new department, a patient will meet the completed in late 2005. The entire building him that the established procedures and same group of doctors, nurses and thera- will cost about DKK 700 million and will be traditions at the hospital, often in the narrow pists throughout his treatment,” explains Bo fi nished over the next decade. interest of the organisation itself, must be Jessen. discarded. This is an opinion sustained by Fast discharge several patient surveys. One of the most Unanimous choice The concept of better coherence in patient common patient complaints is the lack of A unanimous panel of judges chose the pro- treatment is not new to Århus County Hospital. coherence in their treatment; they feel they posal presented by CUBO Arkitekter A/S in “We have been working for years to are shuffl ed around in a system where the partnership with Fich & Bengaard A/S and focus on better patient care,” says Bo Jessen. left hand does not know what the right is COWI. “At our geriatric department, for example, doing. “COWI won because COWI read and we have employed a team of therapists in Now something is going to be done understood what we wrote, and because the department itself. This means these eld- about that situation. The almost 70-year-old CUBO succeeded in creating the correct erly patients do not have to be manhandled hospital is too small, has suffered consider- framework,” says Bo Jessen. “CUBO Arkitek- down to physiotherapy but can receive able wear and tear, and is old-fashioned— ter is the author of the project, with COWI treatment where they are from multi- six-person wards, for example. The County Århus as consultants on all engineering dis- disciplinary teams. These teams also work Council has now decided that new units ciplines and our Norwegian subsidiary at weekends, which means patients can be have to be built and old ones rebuilt. Hjellnes COWI, which has been involved discharged quicker.” Bo Jessen has thus the opportunity to from the beginning, responsible for all tech- And quick discharge is absolutely an ob- realise his visions of the fi rst patient- nical installations,” explains Divisional Direc- jective. oriented hospital in Europe. tor Lars-Peter Søbye of COWI Århus. “Patients should not be in hospital long- The new hospital will have three six- er than necessary. They thrive much better

COWI AT WORKCOWI AT Everything in one place storey wings extending from a central area. at home,” says Bo Jessen. “When they have All those ideas were collated in the tender Each wing will have its own out-patient to be here, we must make their stay as com- material for 40,000m2 of a new building to clinics, wards and treatment rooms. Every fortable as possible. Being admitted to hos- be located in the park south of the existing room will have a view and the buildings will pital should not mean being institutional- buildings. have a light and simple construction. The ised—the new department will help ensure “The vision is for a hospital where out- plot lies on a slope, which means the techni- that.” patient clinics, the X-ray department and cal spaces can be located in the cellar at Divisional Director Lars-Peter Søbye, physiotherapy are gathered under one roof the rear of the complex without taking up @ [email protected] in one department. The patient will register valuable ﬂ oor space. There is also enough and be treated in the same place. The days room for an underground car park. are numbered when patients pass around “We are currently working on the master the system from one department to another plan for the entire hospital,” says Lars-Peter Århus wants to create the ﬁ rst fully patient-oriented hospital in Europe. COWI has been selected as consultant for the project that will run over the next ten years or so

“The vision is a hospital where the patient registers and is treated in the same place”, explains Director Bo Jessen (left) from Århus County Hospital. COWI is preparing a masterplan and COWI Divisional Director 16 Lars-Peter Søbye is heading the project. Intellectual Capital Report 2001/2002 Clients and markets

Private clients this situation, though, the dynamics of each Client portfolio

Management and follow-up Resources Processes Results Client composition and the relationship we business area are considerable. 27% The Intellectual Capital Report for 2001/ enjoy with each other is of considerable Several indicators portray our interna- 2002 is for the parent company COWI A/S. importance for client satisfaction with our tional activities. Among them are the trade ales and marketi The ICR gives an indication of whether S ng services. between parent company and the other 15% Clients and d C 11% we are on the right path to realising our am- n sa lie After a decrease in the share of private companies in the COWI Group, travel abroad, a tis n market ts et fa t n k c bitions, strategies and policies. It covers all e r t clients last year, it has now risen from 24 and project management capacity on inter- li a io COWI’s resources, processes and results, C m n per cent to 27 per cent. We expect the con- national assignments. We are looking for a not only for the organisation itself but also sultancy market to move more towards positive development in all these indicators. for clients and staff. The ICR functions in private sector clients, a development we 46% parallel with the company’s ﬁ nancial ac- External regard as positive. Visibility of specialist expertise knowledge COWI's counts and provides monthly reports on se- Organisation Our consultancy is founded on the compe- Private clients working processes Quality lected areas for all business units in the par- Internal International activities tence and knowledge of the staff. If we are INTELLECTUAL CAPITAL REPORT Other clients ent company COWI A/S. knowledge Our strategy is focussed on international ac- to attract the best staff, therefore, it is im- Public clients tivities in market-leading specialist busi- portant that our professional expertise is Development trends ness. This provides the basis for more ex- visible. We measure this parameter with the Semi-public clients

The ICR for 2001/2002 shows a positive S tensive and more proﬁ table international ac- visibility of our publications and lecture ac- t af f n Most of our clients are in the public development in some areas but also identi- f af io tivities. The share of foreign activities in the tivities. With certain minor shifts, the level of Staff t ct sector; just under a quarter are private. S fa ﬁ es challenges in others. Broadly speaking, tis parent company over the last few years has previous years has been maintained. R g/ sa We wish to increase the percentage of ecruitin private clients. the ICR presents a picture of COWI as a engagement been steady at about 30 per cent. Behind

sound and healthy company. The most disciplinary services, manage projects and International clients obvious developments are seen in supple- develop close relations with the client. Our % mentary education, professional networks prime task is to continue to develop these 19 and development activities. competencies. Our tradition for develop- 18 ment and sharing of knowledge is the very 17 Clients Core competencies foundation for this development. The ICR in- 16 Our consultancy is based on a set of core dicates the more speciﬁ c challenges and ar- 15 competencies—the ability to develop and eas of effort required for this to take place 14 Clients - values and challenges nurture specialist expertise, provide inter- and provides a snapshot of important areas. 13 Our mission is to create value for clients by 12 providing them with holistic solutions that 11 are integrated into the client’s value chain 10 in the best possible manner. Staff We will support this by developing in- 98/99 99/00 00/01 01/02 Develop and Manage projects sight, understanding and effective team- cultivate our and develop Share of project manhour costs on work in our relations with clients. professional client relations projects for clients abroad. After some Internationally, we aim to be a well- capabilities years’ increase, this share now appears to have stagnated. We wish to see a known specialist leader and to supply cut- Deliver multi-disciplinary continued increase in the share of inter- ting-edge solutions founded on the highest solutions national clients. international qualiﬁ cations and state-of- the-art technology.

18 19 Organisation Staff

Internal knowledge Professional networks - staff Development and quality Staff turnover concentrate project management on rela- Staff owning COWI shares Our internal knowledge resources are of participation Externally financed development activity COWI’s staff turnover is believed to be lower tively fewer key employees and thus opti- % great importance to our productivity, quality rose from 4.2 to 6.5 per cent of total work- than average for the engineering consul- mise the use of our project management ex- % 90 and satisfaction with the services we pro- ing hours; internally fi nanced development tancy sector. Outfl ow is stable at 11-13 per perience. 15 85 vide. We work systematically to collate and activity fell from 1.7 to 1.2 per cent. This is cent, with infl ow at about 17 per cent. 80 share project experience and business pro- due to the fact that we have concluded sev- We know from experience that familiar- Image on the labour market 75 cedures through professional networks and eral major development initiatives, including ising new employees is costly and we will According to Universum’s survey of engi- 70 10 ‘best practices’. The number of such net- the introduction of SAP/R3, strategy formu- strive to attain the right balance between fi - neering students’ preferred places of work, 65 works is increasing and now extend to fi elds lation and a number of specialist develop- nancial success and the need for new blood COWI is ranked second among consulting 60 such as project management, language, ment activities. in our staff. engineers but due to a general downward 55 5 GIS, concrete, environment and health. Quality has developed positively. Internal trend for the consultancy sector, we have 50 follow-up on quality has risen whilst re- Project management fallen from a joint second place to fi fth among 45 INTELLECTUAL CAPITAL REPORT Synergy marks in audits fell considerably. Project management capacity has risen engineering sector employers as a whole. 0 97/98 98/99 99/00 00/01 01/02 Synergy arises when people work together sharply. A large proportion of our staff has Among students at business colleges and and their individual differences supplement 98/99 99/00 00/01 01/02 had experience in managing small and me- social science students, we are ranked 36 The number of employees owning COWI each other. dium-sized projects within the last ten overall and 11 among consultants, a minor shares has varied somewhat over the Share of employees participating in years but is consistently well over half One aspect of synergy is the collabora- one or more registered internal pro- years. The fi gure this year is 61 per cent improvement on last year but still a perform- the staff. The company must be devel- tion within the Group; in the course of the fessional networks. Participation against 57 per cent last year, which is high ance we are working to improve. oped as the staff’s company, a goal continues to grow. On top of that we year this rose from 2.7 to 3.5 per cent of the compared to similar companies. We will which will be met partly through co- have more informal professional net- ownership. Percentage of employees turnover. This development meets the re- works, external networks, etc. owning COWI shares varies with growth, quirements and expectations of last year Development share issues, etc. and we are looking for a further increase. 99/00 Unfortunately, exchange of staff between 4.1% 1.6% 1.1% the parent company and the subsidiaries fell from 1.1 to 0.7 per cent, a development we 00/01 wish to change. 4.2% 1.7% 1.1% Staff education 01/02 5% 6.5% 1.2% 0.8% 9% Externally financed development 4% Internally financed development Supplementary education 55% 27% Staff—values and challenges Share of overall working hours used on internal- COWI will create values for its staff by pro- ly and externally fi nanced development and sup- viding specialist and personal development plementary education. Organisation - values and challenges opportunities through challenging assign- Our organisation and business system sup- ment, and improving production processes, ments in a good working environment. port COWI staff and clients to foster maxi- delivering processes and internal support Higher technical education We place high demands on staff quali- mum value creation. processes. fi cations and wish to support the learning Higher education, social sciences About half of our staff have a higher COWI has a tradition for development. The COWI brand must be synonymous technical education (BSc or MSc); process, evaluate performance and reward Higher education, natural sciences We will further develop our core services with quality and value. One of the ways in a fi fth has some other form of higher results. Our goal is to be among the fi ve and extend synergy across the organisation which we can enhance our brand is by at- Other higher education education; and a quarter has a short best workplaces in the consultancy sector. or medium-length education. by strengthening our knowledge manage- tracting and retaining the best employees. Short/medium education

20 21 RESOURCES PROCESSES RESULTS

General Budget Accounts Budget Accounts Budget Accounts A. Unless otherwise speciﬁ ed, ﬁ gures are as per end of 02/03 01/02 00/01 99/00 02/03 01/02 00/01 99/00 02/03 01/02 00/01 99/00 accounts period.

B. Units are given in tables, with name of indicator or in 8 Lectures/100 employees, number (*) 10 13 19 12 Media exposure, mill. number (*) 110 131 n/a 1 Public clients 46% 45% 41% the specifi c indicator note. 2 Semi-public clients 15% 16% 17% 9 Professional publications/100 employees, C. Arrow annotations in the budget column for 3 Private clients 27% 24% 26% number (*) 11 6 17 2002/2003 indicate desired trend for future develop- 4 Other clients 11% 15% 16% 10 Client infl ow 16% 24% n/a ments. 5 Number of clients 1.438 1.484 1.274 11 Client outfl ow 19% 8% n/a 6 Projects abroad 29% 30% 29% 7 Clients abroad 16% 17% 15% Accounting policy CLIENTS & MARKETS D. The Intellectual Capital Report is for the parent company COWI A/S. E. The accounts period follows the fi nancial year— 13 Professional networks, number (*) 45 32 33 19 Inter-disc. cooperation; technical 16% 16% 15% 27 QA audits completed/100 employees, no. (*) 5,7 5,0 3,1 1 May to 30 April. 14 Staff participating in professional 20 Inter-disc. cooperation; natural sciences 51% 50% 48% 28 Recommendations/QA audit, number 2,5 3,4 5,7 5,1 F. The ICR has the same structure as in 2000/2001—

INTELLECTUAL CAPITAL REPORT networks (*) 15% 13% 8% 21 Inter-disc. cooperation; social sciences 45% 44% 47% 29 Costs attributable to external faults 0,1% 0,3% 0,9% i.e. by legal units: staff, client and company. Included 15 Best practices on the Intranet, number (*) 894 773 699 22 Trade within COWI Group (*) 4,0% 3,5% 2,7% 2,3% thereafter are what we have (resources), what we do 16 Projects/employee, number 18 18 17 23 Staff exchange with COWI Group 1,2% 0,7% 1,1% 1,1% (processes) and the effect of what has been done (re- 17 Ongoing projects, number 5.410 5.102 5.152 24 Long-term postings 2,8% 2,8% 3,8% sults). 18 Average turnover/project (DKK ‘000) 1.030 1.010 915 25 Development activity, externally fi nanced 6,5% 4,2% 4,1% G. All clients, projects and staff with a contractual rela- 10% ORGANISATION 26 Development activity, internally fi nanced 1,2% 1,7% 1,6% tionship with COWI are included, irrespective of geographical location or form of contract. H. Apart from those marked (*), indicators are based on transaction information on clients, projects and staff 30 Number of employees 1.731 1.667 1.571 45 Supplementary education (*) 0,8% 1,1% 1,1% 49 Staff satisfaction index (*) n/a 68% n/a in COWI’s central administrative systems . 31 Average age 42,5 42,1 42,0 46 Staff infl ow 17% 17% 13% 50 Sick leave 2,7% 2,6% 2,2% I. Several indicators have been adjusted and/or rede- 32 Length of education, year 6,6 6,7 6,7 47 Staff outfl ow 13% 11% 13% 51 Staff owning COWI shares (*) 62% 70% 79% fi ned compared to 2000/2001. To enable compari- 33 Length of education, written down, year 4,5 4,6 4,6 48 Travel abroad 6,3% 6,4% 5,2% 52 Engineering students' preferred place of son, these indicators have been re-calculated for 34 Employees with highest education (PhD, etc) 4,7% 4,7% 4,4% work, no. (*) 2/1 5/1 2/2 (n/a)/2 both 1999/2000 and 2000/2001. Exceptions to this 35 Higher education; technical 55% 56% 57% 53 Business students' preferred place of are stated in the relevant notes. 36 Higher education; natural sciences 5% 4% 4% work, no. (*) 7/- 36/11 50/13 (n/a) J. Data is collected and consolidated for a period after 37 Higher education; social sciences 9% 10% 9% the end of the account year, whereafter the ICR is 38 Other higher education 4% 5% 4% closed. The last indicators are from 7 June 2002. STAFF 39 Work experience, year 16,1 16,2 16,2 K. The ICR includes items posted after closing in ac- 40 Seniority in COWI, year 9,7 9,8 10,2 count year 2000/2001. Transactions for 2001/2002 that were not received before end of consolidation 41 Project management capacity, all projects 57% 61% 57% 58% period will be posted in 2002/2003. 42 Project management capacity, major projects 37% 37% 37% L. The data basis is consistent with the fi nancial ac- 43 Project management capacity, counts. international projects 26% 27% 25% M. The ICR published externally is consistent with the in- 44 International travelling experience in COWI 28% 26% 24% ternal ICR at department, division and company level. N. The ICR has not been audited externally. All defi ni- tions, calculations and results are documented for Clients and market Organisation foreign subsidiaries in the COWI Group, Staff administrative use. 1-4 Share of year’s project manhour costs by client 13 Number registered internal professional networks permanent COWI offi ces abroad or project offi ces 30-31 Number of employees and their average age. conferences, etc.) of total fi xed working hours. category. ‘Other clients’ includes international at corporate or divisional level. abroad. 32 Average offi cial length of education since 46-47 Infl ow and outfl ow of employees in the year organisations, joint ventures, etc. 14 Share of employees participating in one or more 25-26 Overall development activity on external and secondary school. compared to number of employees by end 5 Number of clients in the year with independent registered internal professional networks. internal projects compared to total project activity. 33 Average offi cial length of education written down previous reporting year, incl. part-time staff. organisational status—own CVR number (DK) or 15 Number of ‘best practices’ accessible on COWI’s 27 Number of internal and external quality audits per to 50 pct. of initial value after 35 years. 48 Share of fi xed working hours used on travel days VAT number (abroad). intranet. 100 employees. 34 Share of employees with highest level of abroad. Basis: 220 fi xed working days per 6 Share of year’s project manhour costs used on 16 Average number of active external projects an 28 Number of recommendations and open items per education—PhD, doctorate or MBA/MPA in full-time employee per year. projects with location/recipient outside Denmark. employee has worked on in the year. quality audit. addition to masters degrees. 49 Staff satisfaction index based on weighted 7 Share of year’s manhour costs used on projects 17 Number of active ongoing external projects. 29 Share of turnover used for correcting external 35-38 Share of employees with higher education in average of answers in staff survey. The index for clients abroad. 18 Average budgeted fee (in DKK 1,000) per project errors and omissions in the year—that is errors technical disciplines, natural sciences or social was reached by weighting satisfaction against 8 Number of external lectures per 100 employees —excl. VAT and reimbursements. Based on and omissions discovered after project approval. sciences as well as other higher educations (BSc importance of a particular issue. In 1999/2000 held during the year. active projects in the year. or MSc). and this year, the satisfaction index was not 9 Number of publications available to the public per 19 Average share of project activity by economists, 39 Average employee work experience since end of measured. In 1998/1999, the satisfaction index 100 employees recorded during the year. biologists, etc. on projects with participation of main education. was 65 pct. 10 Share of new clients for the year—either brand staff with technical education. 40 Average staff seniority in COWI. 50 Share of sick leave of the total fi xed working new or former clients for whom COWI did not 20 Average share of project activity by economists, 41 Share of employees with project management hours. Maternity leave and child’s fi rst day of work in 2000/2001. The number is related to the engineers, etc. on projects with participation of experience in COWI. illness not included. number of clients as per end of 2000/2001. staff with natural sciences education. 42 Share of employees with project management 51 Share of current staff owning COWI shares. 11 Share of clients from 2000/2001 for whom COWI 21 Average share of project activity by engineers, experience in COWI projects with a value greater 52 COWI’s ranking by engineering students as has not worked this year. (Note 10 ). biologists, etc. on projects with participation of than DKK 1 million. preferred workplace according to Universum 12 Number of media exposures (in millions) in the year. staff with social sciences education. 43 Share of employees with project management survey. No. overall/consultants. The indicator is the sum of the number of readers/ 22 Share of COWI Group’s total turnover invoiced experience on international COWI projects. 53 COWI’s ranking by students at business colleges listeners/viewers of COWI references in printed from or to foreign subsidiaries in the Group. 44 Average foreign travel experience since being and social sciences as preferred workplace and electronic media, including TV and radio 23 Share of employees posted to foreign subsidiaries employed by COWI. 100% is reached at 200 according to Universum survey. No. overall/ programmes but excluding advertising material. in the COWI Group or vice versa. travel days. consultants. Based on summaries from Gallup and Infopaq. 24 Share of employees with long-term postings to 45 Share of supplementary education activity (courses,

22 23 Statements on the Annual Report

Statement by the Board of Directors and Executive Management Auditors’ Report We have audited the Annual Report for Today, the Board of Directors and the Executive Management have considered and COWI A/S for the ﬁ nancial year 1 May 2001 adopted the Annual Report of COWI A/S. to 30 April 2002. The Annual Report has been prepared in accordance with the provisions of the Fi- The Annual Report is the responsibility nancial Statements Act for class C enterprises. In our opinion, the accounting policies of the Company’s Management. Our re-

applied are appropriate and the Annual Report gives a true and fair view of the Group’s sponsibility is to express an opinion on the ANNUAL REPORT and the Parent Company’s assets and liabilities, ﬁ nancial position and results. Annual Report based on our audit.

PORTRAIT The Annual Report is recommended for adoption by the Annual General Meeting. Basis of opinion We conducted our audit in accordance with Kongens Lyngby, 24 June 2002 Danish auditing standards. These standards require that we plan and perform the audit Executive Management: to obtain reasonable assurance about whether the Annual Report gives a true and Klaus H. Ostenfeld Keld Sørensen fair view in all material respects. An audit in- Managing Director, CEO Financial Director, CFO cludes examining, on a test basis, evidence supporting the amounts and disclosures in the fi nancial statements. An audit also in- Knud Østergaard Hansen Henning H. Therkelsen cludes assessing the accounting policies Executive Director, Executive Director, applied and signifi cant estimates made by Diplomat on the Metro Danish Operations International Operations management, as well as evaluating the overall fi nancial report presentation. We be- lieve that our audit provides a reasonable Engineer Henriette Quebec has to show understanding basis for our opinion. Board of Directors: Our audit did not give rise to any qualifi - when she tackles the working environment on the Metro Ole Steen Andersen Ida Garre Berit Bankel * cations. Chairman Deputy Chairman Are the workers on the Metro using ear de- handling of polluted soil, noise, ground- operation and maintenance of the construc- Opinion fenders as they should? Are they meeting water and the impacts on the environment tion management’s environmental control Henriette R. Bundgaard * Henrik Gürtler Michael Steen Jacobsen * In our opinion the Annual Report gives a true the requirements for access roads? And were central, but just as important were the system, quality control system and contin- and fair view of the Company’s and the how are they handling chemicals? It is ques- working environment and the safety of the gency plan. She has also been process con- Henrik Brade Johansen Lars Rosholm Jørgensen * Group’s assets, liabilities and fi nancial posi- tions like these that 36-year-old COWI engi- people who built it. sultant for Metro Service, which will operate tion at 30 April 2002 as well as the results neer Henriette Quebec asks workers from “The most important thing is to look af- and maintain the Metro for the fi rst fi ve Niels Christian Nielsen Eigil Steen Pedersen of the Group’s and the Company’s opera- Denmark and abroad at the Copenhagen ter yourself and your colleagues and know years. tions and cash fl ows for the fi nancial year Metro, where COWI is contracted to your rights and obligations. At a workplace The job requires tact, diplomacy and a * Staff representatives 1 May 2001 - 30 April 2002 in accordance Ørestadsselsskabet for the design and con- like the Metro, right in the middle of town, good sense of humour. And as she puts it with the Financial Statements Act. struction management of the project. there is not much room for manoeuvring. herself, it is a job where you cannot be When the fi rst section of the Metro That places special demands on logistics friends with everyone: “It is not always the Lyngby, 24 June 2002 opens between Nørreport and Amager on and the cleaning up process,” explains most popular thing to go round checking 19 October, it will be the beginning of the Henriette Quebec. whether people are doing their job properly. PricewaterhouseCoopers end of a project in which the environment Since she started at COWI in 2000, she So you have to be able to dish out criticism has been very much in the centre; issues has been involved with supervision of the in the correct way.” Hans Primdal such as air quality at large building sites, environment and working environment, and State Authorized Public Accountant Engineer Henriette Quebec, @ [email protected]

24 25 Report for the Financial Year Group key ﬁ gures and ﬁ nancial ratios

1997/98 1998/99 1999/00 2000/01 2001/02 2001/02 Company information DKKm DKKm DKKm DKKm DKKm EURm Key ﬁ gures COWI A/S Board of Directors Executive Management Amounts in DKK million Parallelvej 2 Ole Steen Andersen, Chairman Klaus H. Ostenfeld, EUR/DKK rate, 30 April 2002 743.40 DK-2800 Kongens Lyngby Ida Garre, Deputy Chairman Managing Director, CEO

Phone +45 4597 2211 Berit Bankel Fax +45 4597 2212 Henriette R. Bundgaard Keld Sørensen, Net turnover 1,355.0 1,330.7 1,379.7 1,533.2 1,720.4 231.4 Website: www.cowi.dk Henrik Gürtler Financial Director, CFO Operating profi t on ordinary activities 19.4 (25.4) 14.8 46.2 52.0 7.0 E-mail: [email protected] Michael Steen Jacobsen Operating profi t 15.5 (33.7) 8.1 44.4 50.8 6.8 CVR No. 44 62 35 28 Henrik Brade Johansen Knud Østergaard Hansen, Net fi nancials 23.8 15.5 15.8 0.9 6.0 0.8 Domicile: Kongens Lyngby Lars Rosholm Jørgensen Executive Director, Danish Operations Niels Christian Nielsen Profi t on ordinary activities after tax 29.4 (5.2) 9.1 35.3 38.3 5.2 Eigil Steen Pedersen Henning H. Therkelsen, Profi t on extraordinary activities Executive Director, International Operations after tax 0.0 0.0 0.0 0.0 0.0 0.0 COWI Group share of profi t for the year 28.1 (4.4) 9.1 33.2 35.7 4.8 Auditors Strategic focus Ownership PricewaterhouseCoopers COWI focuses on supplying consultancy The share capital amounts to DKK 34.75 mil- Fixed assets 165.6 171.1 158.9 114.4 126.0 16.9 Strandvejen 44 services within engineering, environment lion, consisting of DKK 20 million A shares Current assets 827.2 800.9 910.6 955.8 956.4 128.7 DK-2900 Hellerup and economics and activities that are natu- and DKK 14.75 million B shares. The A Hans Primdal rally associated with these areas. The Com- shares carry 10 votes for each DKK 100 Total assets 981.8 963.0 1,059.5 1,070.2 1,082.4 145.6 pany’s objective is to supply consultancy share, whereas the B shares carry 1 vote for Share capital 34.8 34.8 34.8 34.8 34.8 4.7 Annual General Meeting services of the highest quality according to each DKK 100 share. All A shares are owned Shareholders’ funds 330.9 323.2 331.7 360.5 393.1 52.9 The Annual General Meeting will be held an international benchmark. by the COWI Foundation that supports re- Provisions 166.9 143.0 149.0 146.8 162.2 21.8 on 23 September 2002 at the Company search and development within Danish engi- address. Long-term objective neering. Long-term debt 20.1 18.4 16.2 9.7 8.5 1.1 The overall objective of the COWI Group is to The insurance companies Codan and Short-term debt 464.9 478.9 565.7 544.3 507.0 68.2 be recognised as a leading consultancy group Danica each holds DKK 4 million B shares, in Northern Europe, at the same time as being the employees hold DKK 5.6 million while Cash fl ows from operating activities 97.2 (10.1) (21.8) 43.0 124.7 16.8 the international market leader within selected the COWI Foundation and COWI A/S to- Investment in tangible fi xed assets, net 7.8 (23.8) (14.2) 30.0 (36.2) (4.9) services. gether hold the remaining DKK 1.15 million B shares. Other investments, net (24.0) (23.5) (12.8) (15.0) (31.1) (4.2) Cash fl ows from investing activities, net (16.2) (47.3) (27.0) 15.0 (67.3) (9.1) Free cash fl ow 81.0 (57.4) (48.8) 58.0 57.4 7.7 Cash fl ows from fi nancing activities (27.5) 2.2 65.1 (50.2) (42.9) (5.7) Total cash fl ows 53.5 (55.2) 16.3 7.8 14.5 2.0

Financial ratios Operating margin 1.1% (2.5%) 0.6% 2.9% 3.0% Return on invested capital 3.1% (6.6%) 1.3% 7.8% 9.2% Equity ratio 33.7% 33.6% 31.3% 33.7% 36.3% Return on equity 9.2% (1.3%) 2.8% 9.7% 9.5%

Average number of employees 2,113 2,169 2,085 2,203 2,318

26 27 Report for the ﬁ nancial year 2001/2002

Development in net turnover Development in equity ratio Development in equity value Results for the year and operating margin and shareholders’ funds In 2001/2002, COWI increased its net turn- The German subsidiary BaUmCOWI has In the course of the year, a profi t margin of over by 12% to DKK 1,720.4 million. Oper- been hit by the lengthy recession in Ger- 3.0% was achieved, compared to 2.9% the DKKm % DKKm % Exchange rate ating profi t rose by 14% to DKK 50.8 mil- many and by the crisis in the country’s previous year. If the negative result of 2000 4 37 1200 lion, and pre-tax profi ts by 25% to DKK 56.8 building and construction sectors. The re- BaUmCOWI is disregarded, the Group’s 3 400 36 million. duction in business and the restructuring of profi t margin is 3.6%. COWI’s profi tability 35 1000 COWI thereby continued the positive the company have infl uenced COWI’s oper- is thus continuing towards the long-term 1500 2 300 34 development in turnover and earnings of ating results with a loss of DKK 11 million goal of a profi t margin of 6-7%. 1 1000 33 800 recent years. This trend meets the expecta- which is not satisfactory. At the end of the The Board of Directors recommends an 0 200 32 tions given in the annual report for fi nancial year, BaUmCOWI’s shareholders’ unchanged dividend of 10% , with the re- 500 -1 31 600 2000/2001. In the light of the deteriorating funds amounted to DKK 12.6 million cor- mainder of the profi t being carried forward -2 100 30 market conditions following the events in responding to an equity ratio of 52.7%. In to next year. 0 -3 29 400 New York on 11 September 2001 and the contrast, the newly acquired “European At the end of the fi nancial year, the COWI 0 28 Danish Government’s re-prioritisation of Transport Consultants( ETC) generates very Group had a staff of 2,335 employees. 99/00 97/98 98/99 99/00 00/01 01/02 97/98 98/99 00/01 01/02 /02 public sector investment, we regard this re- good results in the German market for Financial year 97/98 98/99 99/00 00/01 01 Financial year sult as satisfactory. transport systems. Financial year COWI’s Executive Management from left: Knud Net turnover Equity value Østergaard Hansen, Executive Director, Danish Opera- Operating margin Shareholders' funds tions, Klaus H. Ostenfeld, Managing Director, CEO, Equity ratio Keld Sørensen, Financial Director, CFO, and Henning Therkelsen, Executive Director, International Operations.

Development in return on invested Development in cash ﬂ ow Development in number of employees capital and invested capital year-end and operating proﬁ t on ordinary activities

DKKm % DKKm Number DKKm 700 12 150 3000 60 11 50 40 10 100 2500 500 30 8 20 300 6 50 2000 10 4 0 -10 100 2 0 1500 -20 0 0 -30 -2 -50 1000 -40 -4 -300 -6 -100 97/98 98/99 99/00 00/01 01/02 -8 Financial year 97/98 98/99 99/00 00/01 01/02 Average number of 97/98 98/99 99/00 00/01 01/02 Financial year employees Financial year Operating profit on Free cash flow ordinary activities Invested capital, end-of-year Cash flows from operating Return on invested capital activities

28 29 Tange Lake. Fish are to move freely in the Gudenå River. COWI has assisted with a number of solutions for the passage of the Gudenå River at Tange Lake.

Key events

The Danish Government’s cutback in public general to reward initiatives promoting this spending announced in December 2001 development. and the subsequent reduction of economic COWI’s most signifi cant internal venture support to Eastern Europe, development as- has been to fi nalise a comprehensive corpo- sistance and environmental programmes rate strategy. Based on the Group’s unique necessitated a sharper focus on interna- characteristics and market strengths, every tional development banks and organisa- company and business unit has been in- tions, such as the World Bank and the EU. It volved in preparing a focussed Group strat- would appear that these tactics have pro- egy that fi xes the focus taking into account vided a buffer against the full impact of the clients, services and geography. The cuts. There can be little doubt that the Group’s business foundation—our high government’s environmental policy will bring standard professional expertise, our ability about a fall in turnover and earnings in to solve complex multi-disciplinary tasks Market developments and several environmental disciplines, if only and our international key competences in consequences for COWI temporarily. However, thanks to COWI’s specialist fi elds—has led to a strategy for broad spectrum of services and expertise, growth in both earnings and turnover. Denmark Turnover in this sector represents roughly for economics and management has shown we are well equipped to adjust to the new In the course of the fi nancial year, COWI The domestic consultancy market in engi- half of the Parent Company’s turnover. a downward trend. situation and fi nd alternative markets for our acquired the German railway and traffi c neering, environment and economics has COWI’s turnover in industry has shown Our increased focus on private clients services. consultants ETC, European Transport Con- been positive and COWI has extended its strong growth, thanks to a series of signifi - has paid off—the share of private clients With a view to the environmental confer- sultants. COWI Hungary acquired the com- activities accordingly. This development, cant assignments. This development follows has risen from 24% to 27% of turnover. ence in South Africa in September 2002, pany DUNA-BIT, specialists in transport however, involves very differing trends in the the general trend in the consultancy sector. The effect of the widespread set-back of we are participating in the Nordic Partner- planning. The equity interest in the Norwe- various segments of the market. Similar growth has occurred in environmen- the economy has not yet been felt in terms ship initiative. Together with 16 other Scan- gian subsidiary Hjellnes COWI has been The market for consultancy in the build- tal activities, whilst the market for energy of turnover, partly because we have been able dinavian companies, COWI has signed a increased to 70%; and fi nally COWI and two ing and construction sector in Denmark has consultancy is weakening. to compensate by developing new services manifesto committing us to work towards partners established CAT Alliance Ltd, which developed satisfactorily. COWI has main- Generally speaking, consultancy in traf- and partly because our broad portfolio of sustainable development and to encourage markets services in the fi eld of environmen- tained its turnover in these fi elds, though fic, transport and IT has maintained the assignments has made it possible to realign governments, authorities and societies in tal due diligence. with a fall-off towards the end of the year. levels of previous years, whereas the market to fi elds with more buoyant economic trends.

The nuclear facilities at Risø Research Establish- ment are prepared for de- commissioning. COWI is consultant to the Ministry 30 for Knowledge, Technology 31 and Innovation. Among the year’s key projects were: Abroad • Urban development in Laos. Environmen- growth somewhat, the US market is still de- • The Copenhagen Metro. COWI has a con- After strong growth in exports the previous tal improvements in local communities to veloping positively. The company achieved a tract with Ørestadsselskabet for design year, we saw a rather weak export market the principles of the UN’s Agenda 21; im- growth in turnover of some 20%, with pre- and construction supervision, and the de- last fi nancial year, as a result of the fl uctua- provements of water supply, waste man- tax profi ts rising by roughly 60%. The com- sign of building and construction works tions in the international market and a agement and sewerage. pany’s earnings are thus satisfactory. for the project. world-wide restraint in funding for develop- • Capacity development of energy sector in • COWI has assisted The Ministeries for En- ment assistance. COWI’s international busi- South Africa. Strategy and action plan for Buckland & Taylor Ltd. - Canada vironment and Food, Agriculture and Fish- ness, however, still represents 53% of the the South African Ministries of Minerals With its core business in major bridges, eries with a number of proposals for the Group’s turnover. and Energy. Buckland & Taylor of Vancouver generated a passage af Gudenå River at Tange Lake. The Parent Company’s export growth ar- • Consultancy services in connection with turnover and pre-tax profi t slightly below • Danish Crown is currently building a major eas were construction consultancy services, public-private cooperation in the fi eld of those of the previous year. The stagnation in abattoir. COWI is main consultant. especially in bridge building and marine waste management in Belgrade. turnover and earnings is due mainly to the • The nuclear plant at Risø Research Estab- structures. This development is based on completion of a couple of major projects and lishment is to be shut down. COWI is con- the experience and expert knowledge we COWI subsidiaries a certain degree of saturation in the Cana- sultant to the Ministry for Knowledge, have acquired from the major Danish infra- The following gives a brief account of key dian economy. Despite this, the company’s Technology and Innovation. structure projects of recent years. Consul- events in COWI’s subsidiaries in the fi nan- earnings are still satisfactory. • New headquarters for the Danish Broad- tancy in traffi c and transport also showed a cial year. casting Corporation, Danmarks Radio in positive trend, whereas consultancy in air- European Transport Consultants, GmbH Ørestad. The master plan has been se- ports and tunnels fell somewhat. Hjellnes COWI A/S - Norway (ETC) - Germany lected with the focus on environment- The EU is still a major client, particularly Business on the Norwegian market has de- Major investments are being made in public friendly and urban ecology themes. COWI in infrastructure projects in Central and veloped well, with good earnings. There was transport in Germany. COWI has therefore has performed feasibility study, planning Eastern Europe. The interaction of our sub- a particularly high level of activity in the hos- acquired 80% of the shares of European of outline design and assisted the owner sidiaries and offi ces in these countries is of pital sector. Hjellnes COWI achieved a Transport Consultants (ETC) in Berlin. The on implementation of the project. particular importance to such assignments. growth in turnover of 20%, whilst pre-tax acquisition of ETC has given COWI specialist • Pharmacosmos is building a new factory Among the year’s most signifi cant profi ts were at the same level as the pre- skills in rail systems (a growth area in in Holbæk. COWI is consultant in con- projects are: vious year. The subsidiary Johs. Holt has Europe), which help strengthen and develop struction management and supervision • The Bahrain-Qatar causeway, the world’s been fully incorporated into Hjellnes COWI. COWI’s overall position in the growing Ger- for the respective disciplines, much of the longest fi xed link. COWI will be taking part Johs. Holt specialises in bridge design, with man market for transport consultancy. The process equipment and 3-D modelling. in feasibility studies for a 45 km road and Norway once again becoming a profi table company has a staff of 100 and satisfactory • Construction works for the rebuilding of bridge link. market. During the year, COWI increased its earnings. railway technical installations and surfac- • Feasibility study and design of a 22 km shareholding in Hjellnes COWI to 70%. ing at the IC4 workshop in Århus. COWI is road bridge connecting Kuwait City BaUmCOWI GmbH - Germany participating in planning and design. with the development area Subiyah. The Ben C. Gerwick Inc. - USA The German market is still under great pres- • Management consultancy for Post Dan- bridge will be one of the most signifi cant For the last couple of years, Ben C. Gerwick sure in traditional sectors such as infra- mark. COWI has been awarded a frame- construction projects in the region. Inc., based in San Francisco, has seen posi- structure and building, with BaUmCOWI in work contract in working environment, • Coastal protection in Ireland. Reinforce- tive development, with annual improvement Berlin feeling the pinch. This year, signifi - logistics, environmental management ment of railway embankments and 30 km of both growth and earnings. Although the cant cutbacks in staff were once again and green accounts, and production of coastal protection. events of 11 September slowed down necessary, with resulting high costs in optimisation.

Management of water, waste and sewerage. COWI is involved in urban development in Africa . and Asia. Picture from Tanzania.

1 2 1. Reinforcement of railway embankments in Ireland. 2. Construction works at the IC4 workshop in Århus.

32 33 COWI has a new strategy severance pay. The company has therefore In late 2001, COWI’s Board of Directors and The prime tasks will be to continually reported a considerable loss for the fi nancial Executive Management decided to adopt a develop these core skills. The successful year. new and ambitious corporate strategy. Over COWI project manager is professionally the next fi ve years, COWI is to grow to al- competent, a perceptive consultant and a COWI Hungary Ltd. - Hungary most twice its present size—both in terms good businessman. In January 2002, COWI Hungary acquired of turnover and staff—and its profi tability DUNA-BIT, a small company with expertise in levels will rise to those of the best perform- COWI’s vision transport planning. The take-over is in full ac- ers in the international consultancy sector. cordance with our strategy to supply value- The launch platform of the strategy is The preferred consultant adding services and specialist consultancy in simple—to become the client’s preferred It is our aim to become the client’s preferred planning and management policies to our cli- consultant. COWI wishes to be regarded as consultant. Our clients should perceive and ents in the environment and transport sectors. one of the leading and most attractive con- recognise us as the consultant who best un- COWI Hungary was founded in 1999 and now sultant companies in Northern Europe, at derstands their needs and who provides so- has a staff of 15. The company is in a build-up the same time as being among the market lutions that best meet those needs. We con- phase but fi nancial developments were satis- leaders in fi ve specifi c areas of service. centrate both on the best technical solutions factory. Concrete business objectives in that and examine carefully what is of greatest fi ve-year period are: to increase operating value to the client. The correct solution CAT Alliance Ltd. - International margin from 2.9% in 2000/2001 to an ini- could be either the innovative and techno- Feasibility study and design of a 22 km In January 2002, three of the largest con- tial 5-6% in 2005/2006 (based on the ob- logically sophisticated or the tried and trust- road bridge connecting Kuwait City with sultancy fi rms in Europe, COWI A/S, Enviros jective of concurrent growth) and a long- ed—or a combination of both. the development area Subiyah. Intellectual capital in the UK and Tauw in Holland, established term margin of 6-7%; to increase the return the company CAT Alliance Ltd. Each com- on invested capital from 7.8% in 2000/ Building skills accounts for COWI in pany owns one third of the shares. The Alli- 2001 to 14% in 2005/2006. It is our objective to create the most attrac- Denmark ance covers markets in more than 50 tive place of work for professionals who countries, providing services in environmen- COWI’s mission want to forge a specialist, commercial or Each of our domestic markets is organised International service lines Our three core competencies—professional tal due diligence—that is consultancy on COWI’s market mission is to supply consul- management career in the consultancy sector. as a business that supplies a range of ser- COWI concentrates on fi ve service lines in expertise, the ability to supply multi-discipli- environmental conditions and potential fi - tancy services of the highest quality in the vices that meet the needs of the local market which we already enjoy an international repu- nary services and the ability to manage nancial risks inherent in the acquisition and three service lines of engineering, environ- COWI’s business concept on a national or regional level. tation: projects and develop close relations with disposal of companies and land in Europe ment and economics. As a result of this COWI’s business concept is based on ex- Our clients can be confi dent they are re- • Development assistance clients—form the foundation of our busi- and elsewhere. shift in focus, COWI Consulting Engineers tended domestic market activity in selected ceiving consultancy from a highly profes- • Environmental due diligence ness. The challenge is to develop these AS changed its name to COWI A/S in De- countries and a focussed international busi- sional organisation, irrespective of which of- • Tunnels competencies all the time. The Intellectual cember 2001. ness in fi ve selected service areas. fi ce they have contact with. The client will, • Major bridges Capital Report, published by the Parent Com- COWI’s business foundation comprises at all times, have access to the collective ex- • Marine structures pany for the fourth time, identifi es these core three areas of core expertise: Domestic markets perience of the entire COWI Group of com- skills through a series of indicators. • The ability to develop and nurture our pro- Our domestic markets in Northern and East- panies no matter which market he operates Within these service lines, we supply world- The Intellectual Capital Report is system- fessional expertise ern Europe cover: in. This guarantee is part and parcel of the class international specialist services, either atically developed and implemented along • The ability to supply multi-disciplinary ex- • Denmark, including the Øresund region of product we sell. alone or in partnership with other acclaimed the same lines as our traditional fi nancial pertise Southern Sweden Although our services are primarily consultants. COWI’s subsidiaries play a accounts, with monthly reports being pre- • The ability to manage and supervise • Norway aimed at providing consultancy on our geo- central role in this activity. pared for all business units in Denmark. projects and develop close relations with • Germany (certain regions of Northern graphically domestic markets, we follow our our clients. Germany) clients all over the world. Clients who work • Certain countries in Central and Eastern multinationally can be assured of our con- Europe. sultancy services wherever they are active.

1. Management con- 1 2 sultancy for Post Danmark. 2. Bahrain-Qatar causeway, the 34 world’s longest 35 ﬁ xed link. Six out of ten employees at COWI are experienced project managers.

• Straw pyrolysis pilot plant in Slagelse for • Building-up of knowledge management According to Universum’s annual survey of ELKRAFT function and activation of the intellectual attractive employers, COWI has moved from • Participation in the EU Duracrete project capital reporting module in SAP second place to fi fth among engineering • Green concrete students as a whole. This is unsatisfactory. • Sustainable tunnels. EU DARTS project - Inter-disciplinary collaboration has been In the same survey, however, COWI has Durable And Reliable Tunnel Structures. strengthened through more professional moved from second place to fi rst place networks—an increase from 32 to 41 this among consultancy companies. We are 30 years of corporate experience is put to use year. Project experience is made visible by aiming at a fi rst place for engineering stu- in developing COWI’s business system and to describing best practice on COWI’s intranet. dents as a whole. enhance professional development in COWI. Among current developments are methods for Staff assessing pathogen pollution, experiments There has been continued growth in staff Events since in collection of experience from video se- fi gures: at the close of the fi nancial year quences, development of COWI’s IT tools in there were 1,731 employees in the Parent cut-off date areas such as GIS and operation of buildings. Company, 1,643 of whom were in Denmark; COWI has acquired the internationally ac- The business system is developed with: 80 of them hold PhDs or equivalent qualifi - claimed company Kampsax A/S, with more • New strategy and its organisational con- cations. Project management capacity has than 400 employees and 270 project staff The Intellectual Capital Report provides the is an indication of consolidation of previously • Development of working environment for sequences, focussed business plans for also risen: 61% of the staff now have expe- and a turnover of DKK 400 million. The ac- non-fi nancial indicators for strategy monitor- acquired market shares. the Danish Working Environment Service all business units. rience in project management, compared to quisition of June 2002 is the largest in ing and is structured according to our three • Study for Danish Environmental Protec- • New systems and procedures to focus, 57% the previous year. COWI’s history. Kampsax brings with it exper- target groups for value creating—clients, Organisation tion Agency of environmental conse- support and coordinate international busi- COWI has seen a considerable enhance- tise in development planning, environmental staff and company. The report shows posi- We develop our professional expertise by quences of percolation of environmentally ness ment to its image. According to the annual planning, major construction projects abroad tive developments in a number of param- prioritising projects with development po- hazardous compounds • Business plan for Central and Eastern survey carried out by the Danish trade and geographical information systems, eters, but indicates challenges in others. tential. Development activities for clients • New railway data bank for Jernbaneverket Europe publication Ingeniøren in April 2002, based including GIS and map production. As a re- have risen from 4.2% of turnover in 2000/ in Norway. • Project websites for collaboration and on statements from qualifi ed and student sult, the COWI Group, with its 2,800 staff, has 2001 to 6.4% in 2001/2002. • Further development of the CASA NOVA knowledge-sharing with clients, partners engineers, COWI is ranked second in the achieved the position of a market leader in the Clients and the market Significant development projects for residential building system and suppliers on global projects. consultant sector after NNE. In the overall fi elds of development planning, environmen- The Intellectual Capital Report shows that we clients: • 4-D seismics of limestone fi elds for ØD-S • Upgrading of all work places to MS Win- rating of 100 engineering companies, COWI tal planning, geographical information sys- have seen a fall in numbers of clients. Taken • Traffi c information systems for the Great- Holding A/S dows XP, latest offi ce software and sys- was given a respectable seventh place by tems and mapping. The Company already together with the increases in turnover, this er Copenhagen Authority • Wooden bridges tems management the students and ninth by the engineers. enjoys that status in the fi eld of bridges.

1 2 1. Wooden bridges. 2. Wooden houses. COWI is developing wooden residental buildings via the CASA NOVA resi- 36 dental building system. 37 Expectations for the future

In the fi nancial year 2002/2003, COWI’s the plan, we will build up and strengthen in- parent company will continue to be affected ternational and regional core skills in bridges, by the transition to new markets and new marine structures, railways, environmental types of assignment following the Danish due diligence and development assistance. government’s change in priorities for public In the course of the fi nancial year, we expect spending. In the fi eld of development assist- to strengthen activities considerably in a ance, COWI is seeking assignments that are number of countries in Central and Eastern not fi nanced with Danish funds. The down- Europe. prioritising of environmental aid to Eastern As a result of the re-orientation of a

Europe furthermore necessitated a change number of business areas mentioned above, PORTRAIT to other national and international environ- we expect limited organic growth in turnover ment assignments such as environmental in 2002/2003. We also expect that profi t- due diligence. ability, measured in operating margin on ex- We wish to continue to develop both the isting business, will continue the positive share of international business that origi- developments of recent years. nates from Denmark and the share coming We expect 2002/2003 to see growth as from our subsidiaries abroad. We are there- a result of acquisition and development of by exploiting growth potential and challeng- new business areas. Although in the short ing the organisation to change its way of term these activities will have a negative ef- thinking. The interplay between the activi- fect on earnings, we expect the overall re- ties of the divisions in Denmark and the sult of improved profi tability in existing busi- efforts of the subsidiaries constitutes the ness, and investments in business develop- A judge of human character fl y w h e e l o f COWI’s international business ment, to lead to a positive development in development. earnings. Being a head of department in Tanzania In 2002/2003, COWI will continue to realise its new strategy. In accordance with requires versatility, consistency and patience, believes Michael Vedel

The job as head of department for the build- and installation of fi refi ghting equipment for Vedel from his offi ce chair in the middle of ing and industry department of COWI’s large industrial companies. But leadership Dar es Salaam. Tanzanian subsidiary is far from a life of sa- abilities are equally important in a country According to him, the job demands ver- faris and sundowners with stunning views of like Tanzania, which has been used to the satility, consistency, patience—there are the Indian Ocean. For 37-year-old engineer boss taking responsibility and delegating as- frequent power cuts during the rainy season Michael Vedel, who has been posted with signments since the colonial era. —and the ability to judge human character. his family in Dar es Salaam, the harbour of “My methods are different from what “In Tanzania, you have to know your peace, since 2000, the work presents many most Tanzanians are used to. I try to hold staff and their abilities intimately. A Tanza- challenges. His projects range from restora- regular departmental meetings, delegate nian never says no to a job,” says Michael tion of the old Kivukoni court building to responsibility and make the staff capable of Vedel. construction supervision of Umuja House, handling a project themselves. This gives Head of Department Michael Vedel, the common building for several agencies, them much greater infl uence,” says Michael @ [email protected]

1. COWI expects to strengthen 1 its activities substantially in Central and Eastern Europe.

38 39 Financial review

General COWI continued the positive development in Domestic net turnover progressed by 11% A few of the Group’s companies reported a result of the reduction in corporate tax in progress advanced by 20% to DKK 175.6 Cash Flow Statement turnover, results and profi tability that began with foreign net turnover going up by 13% . very unsatisfactory earnings. The German rates from 32% to 30%. The effective tax million. The net amount tied in work in Cash fl ow from operating activities was DKK in the fi nancial year 1999/2000. Turnover The increase in domestic turnover is prima- company BaUmCOWI reported operating rate for the year is 32.6%. progress and debtors with the deduction 124.7 million, an improvement on the year rose by 12% , operating profi t by 14% and rily attributable to the areas building and op- profi t of a negative DKK 10.6 million. This Group profi t after tax and minority inter- of advance invoicing only rose by 6% to before of DKK 81.7 million. The main cause profi t before tax increased by 25%. eration, transport infrastructure and indus- was due to the strong impact of the general ests for the year was DKK 35.7 million DKK 350 million, which is the result of the for this improvement—in addition to the The 2001/2002 Annual Report has try. The increase in foreign turnover is partly slowdown in the German economy and the against DKK 33.2 million the year before. Group’s ongoing efforts to minimise the continued improved operating cash fl ow— been prepared in accordance with the provi- due to the German acquisition referred to recession in the German building and con- working capital ratio of net turnover. is that other receivables have declined sig- sions of the new Danish Financial State- above and increases in the subsidiaries in struction sector. In the course of the fi nan- Balance Sheet Other receivables were down by DKK nifi cantly. ments Act for a large class C enterprise. Norway, the US and Russia. The increase in cial year, expenses were incurred in con- The Group’s balance sheet amounted to 52.9 million to DKK 39.6 million. The main Cash fl ow from investing activities came The new Financial Statements Act will not foreign turnover in the Danish divisions oc- nection with a restructuring of BaUmCOWI DKK 1,082.4 million, up DKK 12.2 million, reason is that the amount receivable from to a negative DKK 67.3 million against a take statutory effect until fi nancial year curred in particular within environment, bridge resulting in a cutback of 16 employees. which corresponds to an increase of 1% on the sale of fi xed assets in Berlin at the end positive DKK 15.0 million the year before. 2002/2003, but COWI has decided to building, energy and waste management. Shareholders’ funds in BaUmCOWI at year- the year before. of fi nancial year 2000/01 was paid in May This is accounted for by the acquisition of present the Annual Report for 2001/2002 Total operating expenses excluding fi - end was DKK 12.6 million corresponding to Total fi xed assets progressed by DKK 2001. subsidiaries to the amount of DKK 26.8 mil- in accordance with the new Act, as COWI is nancials rose by 12% to DKK 1,237.7 mil- an equity ratio of 52.7%. The performance 11.6 million to DKK 126.0 million. The Shareholders’ funds were DKK 393.1 lion in the fi nancial year and by the sale of committed to enhancing the informative val- lion. Staff expenses, the Company’s largest of the Polish company was also unsatisfac- progress may be accounted for by increased million at 30 April 2002. Retained earnings fi xed assets in Germany last year. ue for external and internal stakeholders as operating expense, increased by 11% to tory with an operating loss of just under group goodwill in connection with the acqui- of DKK 35.7 million were added to share- The free cash fl ow was a positive DKK regards the Company’s performance and fi - DKK 967.1 million, of which 4 percentage DKK 2 million. A number of measures were sition of 80% of the shares in the company holders’ funds and distributed dividend pay- 57.0 million, which is in line with last year. nancial situation. The adoption of the new points may be ascribed to the newly ac- implemented during the year with the pur- ETC, payment of the remaining balance for ments of DKK 3.5 million in respect of fi nan- At year-end, the Group’s cash and cash accounting legislation has resulted in quired ETC. The remaining 7% increase pose of increasing the company’s earnings the purchase of the Canadian company cial year 2000/01 were deducted. The eq- equivalents were DKK 311.6 million. With changes to the Company’s accounting poli- should be seen in the light of the 5% in- in the coming fi nancial year. Buckland & Taylor and an increase of the uity ratio, calculated as the percentage of the addition of committed but undrawn cies. In the section “Applied Accounting crease in the number of employees in the Operating profi t as a percentage of turn- equity interest from 50% to 70% in the equity of total liabilities and equity, ad- credit facilities, COWI’s fi nancial resources Policies”, the changes to accounting poli- course of the fi nancial year. External ex- over gives an operating margin for the Group Norwegian company Hjellnes COWI. vanced from 33.7% at 30 April 2001 to at 30 April 2002 were DKK 398.0 million. cies, accounting estimates and restate- penses rose by DKK 36.5 million to 228.4 of 3.0%, which is slightly above last year’s Accounts receivable, services increased 36.3% at 30 April 2002. ments are specifi ed. The consequences of million, up 19% . A little over a third of this level. Adjusted for the negative profi t in by 1% to DKK 379.1 million, while net work these changes for profit, shareholders’ increase is accounted for by costs in ETC BaUmCOWI, the operating margin is 3.6%. funds and balance sheet are also stated. and another third represents higher rent and Financials contributed with a net income offi ce expenses. of DKK 6.1 million against DKK 0.5 million Profi t and Loss Account Operating profi t advanced by 14% to the prior year. Despite this improvement, the Group net turnover in 2001/2002 came to DKK 50.8 million. This is a result of a signifi - result is disappointing as the return on cur- DKK 1,720.4 million corresponding to an in- cant earnings improvement in the Group’s rent asset investments was impacted nega- crease of 12% compared to the year before. Danish business division and enhanced tively by the general trend on securities mar- The increase includes net turnover from the earnings in a number of the foreign subsidi- kets during the fi nancial year. German company European Transport Con- aries. The Danish earnings improvement Profi t before tax and minority interests sultants GmbH (ETC), of which COWI ac- mainly occurred within the divisions indus- came to DKK 56.8 million, equivalent to an quired an 80% shareholding in July 2001. try, energy and IT and also bridge building, increase of 25% on the year before. Without the ETC turnover, the increase in marine structures and foundation. Abroad, Tax was DKK 18.5 million against DKK group net turnover was 8%. particularly the US, Tanzania and Bahrain 10.0 million the prior year, which included subsidiaries recorded enhanced earnings. non-recurring income of DKK 9.7 million as

40 Accounting policies

The 2001/2002 Annual Report of COWI A/S Previously, work in progress was measured at ket price at the balance sheet date and non- ment is charged over the lease term to the 9) Translation policies, Group companies • Profi ts and losses from sale of fi xed as- has been prepared in accordance with the pro- net sales value and written down to cal- listed securities are measured at sales value profi t and loss account. Exchange differences on translation of the sets as well as expenses of a secondary visions of the new Danish Financial State- culated cost. based on a calculated net present value. Previously, finance leases have not opening equity in foreign subsidiaries into nature are reclassifi ed to the profi t and ments Act for a large class C enterprise. The impact of the changed policy on the Previously, current asset investments resulted in any recognition of assets and exchange rates ruling at the balance sheet loss account under the item ‘Other operat- Group and the Parent Company is to in- were measured at the lower of cost and liabilities. date as well as translation of profi t and loss ing expenses, net’ from the previous clas- Accounting policy changes crease profi t on ordinary activities before market value at the balance sheet date. The impact of the changed policy on the accounts from average exchange rates into sifi cation under the items ‘Amortisation For COWI A/S, the new Financial State- tax by DKK 3,485 thousand and profi t for The impact of the changed policy on the Group and the Parent Company is to reduce exchange rates ruling at the balance sheet and depreciation’ and ‘Other external ex- ments Act will not take statutory effect until the year by DKK 2,440 thousand, respec- Group and the Parent Company is to reduce profi t on ordinary activities before tax by date are taken directly to shareholders’ penses’, respectively. the fi nancial year 2002/2003. COWI A/S has, tively. The balance sheet total has been in- profi t on ordinary activities before tax by DKK 300 thousand and profi t for the year by funds. however, decided to present the 2001/2002 creased by DKK 52,087 thousand. Share- DKK 2,617 thousand and profi t for the year DKK 210 thousand, respectively. The bal- Previously, exchange differences on Restatement of comparative fi gures Annual Report in accordance with the new holders’ funds at 30 April 2002 have been by DKK 1,832 thousand, respectively. The ance sheet total has been increased by DKK translation of the opening equity in foreign The policy changes above—except for de- Act as COWI A/S is committed to enhancing increased by DKK 27,838 thousand. balance sheet total has been increased by 11,026 thousand. Shareholders’ funds at 30 subsidiaries at exchange rates ruling at the velopment costs—have been accounted for the informative value for external and internal DKK 2,390 thousand. Shareholders’ funds April 2002 have been reduced by DKK 210 balance sheet date as well as translation of retrospectively and comparative fi gures re- stakeholders as regards the Company’s per- 2) Tangible fi xed assets at 30 April 2002 have been increased by thousand. profi t and loss accounts from average ex- stated. formance and fi nancial situation. Tangible fi xed assets are measured at cost DKK 1,673 thousand. change rates into exchange rates ruling at Correspondingly, restatements of key The adoption of and restatement accord- less accumulated depreciation and impair- 7) Dividend the balance sheet date were recognised in fi gures and fi nancial ratios for previous fi - ing to the new accounting legislation has re- ment losses. 5) Financial assets and fi nancial Dividend proposed for the fi nancial year is the profi t and loss account. nancial reporting periods have been made. sulted in changed accounting policies within Previously, tangible fi xed assets were liabilities intended held to maturity recognised as a liability only when adopted The changed policy has no impact on the following areas: measured at cost less accumulated de- Financial assets and liabilities intended held by the Annual General Meeting. the Group’s and the Parent Company’s Changes in accounting estimates 1) Work in progress preciation with addition of revaluation of to maturity are measured at amortised cost. Previously, dividend proposed for the fi - shareholders’ funds, but increases profi t for With effect from the fi nancial year 2001/ 2) Tangible fi xed assets buildings. This policy implies that the value is currently nancial year was recognised under short- the year by DKK 153 thousand. 2002 Group goodwill—acquired in the fi - 3) Development costs The changed policy has no impact on adjusted for principal repayments as well as term debt. Apart from the above changes, account- nancial year 2001/2002 and subsequently— 4) Current asset investments profi t for the year of the Group and the Par- a calculated amount amortised and fi xed on The impact of the changed policy on the ing policies are unchanged compared with are amortised on a straight-line basis over 5) Financial assets and fi nancial liabilities ent Company. The balance sheet total has the basis of the effective interest rate on as- Group and the Parent Company is an in- last year. the estimated useful life assessed on the intended held to maturity been reduced by DKK 1,156 thousand. sets and liabilities. crease of shareholders’ funds at 30 April basis of experience with the individual busi- 6) Leases Shareholders’ funds at 30 April 2002 have Previously, fi nancial assets and liabilities 2002 by DKK 3,475 thousand and a cor- Reclassifi cations ness areas. The amortisation period is 7) Dividend been reduced by 1,156 thousand. were measured at cost (nominal value). responding reduction of short-term debt. Apart from the accounting policy changes 10-20 years and longest in respect of ac- 8) Derivative fi nancial instruments For the Group and the Parent Company, above, reclassifi cations have been made in quired enterprises that have a strong market 9) Translation policies, group companies 3) Development costs the changed policy has no impact on profi t 8) Derivative fi nancial instruments the fi nancial statements within the following position and an expected long earnings With effect from 1 May 2002, development on ordinary activities before tax, profi t for At initial recognition, derivative fi nancial in- areas: profi le. 1) Work in progress costs are, under certain conditions, recogn- the year, the balance sheet total or share- struments are measured in the balance • Work in progress is reclassified to ac- Previously, Group goodwill was amortised Work in progress for the account of others is ised and measured at the lower of cost, less holders’ funds at 30 April 2002. sheet at cost and subsequently remeasured counts receivable from the previous clas- on a straight-line basis over a period of 5 recognised in the balance sheet net of accumulated amortisation, and recoverable at fair value. Positive and negative fair val- sifi cation as stocks. years. amounts invoiced in advance. Work in pro- amount. 6) Leases ues of derivative fi nancial instruments are • Deposits are reclassifi ed to accounts re- The impact of the change in accounting gress gross is measured at an approximate Previously, costs on development projects Leases recognised as tangible fi xed assets recognised under prepayments and defer- ceivable from the previous classifi cation estimates for the Group and the Parent and prudently estimated sales value of as well as intangible fi xed assets internally of which COWI A/S assumes substantially red income, respectively. as intangible fi xed assets. Company is to increase profi t on ordinary the work performed. The sales value is generated for the Group and the Parent all risks and rewards of ownership (fi nance Previously, fi nancial instruments were • Leasehold improvements are reclassifi ed activities before tax by DKK 436 thousand measured in proportion to the stage of com- Company were charged to the profi t and leases) are measured on initial recognition off-balance sheet items and disclosed in the to tangible fi xed assets from the previous and profi t for the year by DKK 305 thousand. pletion at the balance sheet date and the to- loss account. in the balance sheet at the lower of the fair notes only. classifi cation as intangible fi xed assets. The balance sheet total has been increased tal expected profi t on the individual projects The accounting policy change will take value and the present value of future lease The impact of the changed policy on the • The proportionate share of profi ts/losses by DKK 436 thousand. Shareholders’ funds (the percentage-of-completion method). effect from 1 May 2002. payments. Assets under fi nance leases are Group and the Parent Company is a reduc- before tax for the year of subsidiaries is at 30 April 2002 have been increased by This principle implies that the expected subsequently treated as the Company’s tion of shareholders’ funds at 30 April 2002 recognised in the Parent Company’s profi t DKK 305 thousand. profi t on the individual projects is recog- 4) Current asset investments other tangible fi xed assets. The remaining of DKK 197 thousand and a corresponding and loss account whereas the share of tax nised in the profi t and loss account on a Investments classifi ed as current assets are lease obligation is capitalised and re- increase of prepayments and deferred in- in subsidiaries is recognised under the current basis by reference to the stage of measured at fair value at the balance sheet cognised in the balance sheet under debt, come. item ‘Tax on profi t on ordinary activities’. completion. date. Listed securities are measured at mar- and the interest element on the lease pay-

42 Group accounts Consolidation policy Minority interests of the tax value may be made according The Annual Report includes the Parent Com- On statement of Group results and Group to alternative tax rules, deferred tax is pany COWI A/S as well as undertakings in shareholders’ funds, the share of results recognised on the basis of the planned use Amounts in DKK ‘000 Profi t/loss Tax on Balance Balance which the Parent Company directly or in- and equity in subsidiaries that is attributable of the asset or settlement of the liability, on ordinary profi t/loss Profi t/loss Share- sheet total, sheet total, directly holds the majority of the voting to minority interests is recognised as respectively. activities on ordinary on ordinary holders’ Parent Group rights or in which the Parent Company separate items in the profi t and loss account Deferred tax assets including the tax before tax activities activities funds Company accounts through its shareholding or otherwise exer- and the balance sheet. Minority interests value of tax loss carryforwards are recog- Accounting policy change: cises a controlling interest. Undertakings in are recognised at fair value on the basis of a nised at the value at which they are ex- Work in progress +3,485 (1,045) +2,440 +27,838 +52,087 +52,087 which the Group holds between 20% and remeasurement of acquired assets and li- pected utilised, either by elimination in tax Tangible fi xed assets - - - (1,156) (1,156) (1,156) 50% of the voting rights and exercises a abilities at the time of acquisition of sub- on future earnings or by set-off against de- signifi cant but not controlling interest are sidiaries. ferred tax liabilities within the same legal tax Development costs ------treated as associated undertakings. entity and jurisdiction. Current asset investments (2,617) +785 (1,832) +1,673 +2,390 +2,390 On consolidation, intercompany profi ts Corporation tax and deferred tax Adjustment of deferred tax is made con- Financial assets and liabilities ------and expenses, shareholdings, dividends and The Company is jointly taxed with certain cerning elimination made of unrealised in- Leases (300) +90 (210) (210) +11,026 +11,026 balances as well as realised and unrealised 100% owned Danish and foreign sub- tercompany gains and losses. gains and losses on transactions between sidiaries. The tax effect of the joint taxation Deferred tax is measured on the basis of Dividend - - - +3,475 - - group companies have been eliminated. with the subsidiaries is charged to the profi t the tax rules and tax rates in the respective Derivative fi nancial instruments - - - (197) - - The accounts applied for the Group’s and loss account in the Parent Company. countries that will be effective under the Translation policies, group companies +153 - +153 - - - Annual Report have been presented in ac- Tax for the year consisting of current tax legislation at the balance sheet date when Total effect of policy change +721 (170) +551 +31,423 +64,347 +64,347 cordance with Group accounting policies. and deferred tax for the year is recognised the deferred tax is expected to crystallise Changes in accounting estimates: The Group’s Annual Report has been pre- in the profi t and loss account with the share as current tax. Any changes in deferred tax pared on the basis of the accounts of the attributable to profi t for the year, and is as a consequence of amendments to tax Group goodwill +436 (131) +305 +305 +436 +436 Parent Company and the subsidiaries by recognised directly to shareholders’ funds rates are recognised in the profi t and loss Total effect of changes in combining items of a uniform nature. with the share attributable to entries recog- account. accounting policies and estimates +1,157 (301) +856 +31,728 +64,783 +64,783 Participating interests in subsidiaries are nised directly to equity. Any share of the tax eliminated at the relevant proportion of the carried in the profi t and loss account arising Translation policies net asset value of the subsidiaries at the from profi t/loss on extraordinary activities Transactions in foreign currencies are trans- time of acquisition. for the year is attributed to the profi t and lated applying standard rates approxi- Summary of the fi nancial effect of General on recognition and On initial recognition, assets and liabilities On acquisition of subsidiaries, any differ- loss account, while the remaining share is mating the foreign exchange rates ruling at changes in accounting policies and measurement are measured at cost. Subsequently, assets ences between the acquisition cost and the attributed to profi t/loss on ordinary activities the dates of transaction. Any exchange dif- estimates In the profi t and loss account income is rec- and liabilities are remeasured as described net asset value of the undertaking acquired for the year. ferences arising between the transaction The survey above illustrates the fi nancial ef- ognised as earned, including recognition of below in respect of each individual item. is stated at the time of acquisition after ad- Current tax liabilities and current tax re- date rates and the rates at the date of pay- fects of changes in accounting policies and value adjustments of fi nancial assets and li- Certain fi nancial assets and liabilities are justing the individual assets and liabilities at ceivable are recognised net in the balance ment are recognised in the profi t and loss estimates on the Annual Accounts and the abilities measured at fair value or amort- measured at amortised cost where a con- fair value (the purchase method) and allow- sheet as tax computed on taxable income account as part of net turnover. Group Accounts. ised cost. Similarly, all expenses including stant effective interest is recognised over ing for recognition of any reconstruction for the year adjusted for tax on taxable in- Accounts receivable and payable and The accumulated effect of the changes amortisation, depreciation and impairment the maturity. Amortised cost is stated as provisions in respect of the undertaking ac- come for previous years. other monetary items in foreign currencies recognised in accounting policies and ac- losses are recognised in the profi t and loss original cost less any principal payments quired. Any remaining positive differences Deferred tax is accounted for using the that have not been settled at the balance counting estimates is to increase profi t for account. plus or minus the cumulative amortisation of are recognised in the balance sheet under balance sheet liability method in respect of sheet date are translated into the exchange the year by DKK 1,157 thousand. Tax for the Assets are recognised in the balance any difference between cost and nominal intangible fi xed assets as group goodwill all temporary differences between account- rates ruling at the balance sheet date. Any year of the policy change amounts to DKK sheet when it is probable that future eco- amount. In this way capital losses and gains and amortised on a straight-line basis over ing and tax values of assets and liabilities. differences between the exchange rates at 301 thousand which impacts profi t after tax nomic benefi ts will fl ow to the company and are amortised over the maturity. the expected useful life, however at a maxi- No deferred tax is, however, recognised in re- the balance sheet date and the rates at the for the year by DKK 856 thousand. The im- reliable measurement of the value of the as- Recognition and measurement take into mum of 20 years. Any negative differences spect of temporary differences concerning time when the receivable or payable arises pact on the balance sheet total is DKK set is possible. consideration anticipated losses and risks are recognised in the balance sheet. goodwill not deductible for tax purposes as are recognised in the profi t and loss account 64,783 thousand, while the effect on share- Liabilities are recognised in the balance that arise before the time of presentation of Goodwill from acquired undertakings is well as other items—apart from acquisition under fi nancial income and expenses. holders’ funds at 30 April 2002 is DKK sheet when it is probable that future eco- the Annual Report and that confi rm or invali- adjusted as a result of changes in recogni- of enterprises—where temporary differ- Fixed assets acquired in foreign curren- 31,728 thousand. nomic benefi ts will fl ow out of the company date affairs and conditions existing at the tion and measurement of net assets for a ences have arisen at the time of acquisition cies are translated into the rates ruling at and reliable measurement of the value of the balance sheet date. period of up to a total fi nancial year follow- without any effect on accounting and tax- the dates of transaction. liability is possible. ing the time of acquisition. able profi ts. In cases where the computation

44 45 On recognition of foreign subsidiaries and and loss account together with any changes Project expenses Development projects Special installations in buildings are depre- Impairment of fi xed assets associated undertakings that are separate arising in the fair value of the hedged asset Project expenses include expenses directly Development projects that are clearly de- ciated on a straight-line basis over 10-15 The net book value of intangible as well as legal entities, profi t and loss accounts are or the hedged liability. attributable to projects excluding salaries infi ned and identifi able where the technical years. tangible fi xed assets are reviewed on an an- translated at monthly average exchange Changes in the fair value of derivative fi - cluding travel expenses, external expenses utilisation rate, suffi cient resources and a nual basis to determine whether there is any rates, and balance sheet items are trans- nancial instruments that are designated and as well as other expenses. potential future market or development op- Technical installations, indication of impairment exceeding the write- lated at exchange rates at the balance sheet qualify as future asset and liability hedges portunity in the enterprise can be verifi ed equipment and automobiles downs in connection with general amorti- date. Exchange differences arising on trans- are recognised in prepayments/deferred in- External expenses and where the intention is to market or use Technical installations, equipment and auto- sation and depreciation. Where impairment lation of the opening equity of foreign sub- come or shareholders’ funds, respectively. External expenses include administrative ex- the project, are recognised with effect from mobiles, including leasehold improvements is required, writedown is made to recover- sidiaries into the exchange rates at the bal- Where the forecasted transaction results in penses, offi ce expenses, marketing expenses 1 May 2002 as intangible fi xed assets. This are measured at cost less accumulated de- able amount, if lower. The recoverable ance sheet date as well as on translation of the recognition of an asset or a liability, as well as other expenses. applies if suffi cient certainty exists that the preciation and impairment losses and de- amount of the asset is determined as the profi t and loss accounts from average ex- amounts that have been deferred in equity net present value of the future earnings can preciated on a straight-line basis over 3-10 higher of net selling price and net present change rates into the exchange rates at the are transferred from equity and included in Other operating expenses, net cover the expenses involved. years. value (value in use). Where it is not possible balance sheet date are recognised directly the cost of the asset and the liability, re- Other operating expenses, net, include items Development projects that do not meet to determine the recoverable amount of the to shareholders’ funds. spectively. Where the forecasted transac- of a secondary nature compared with the the criteria for recognition in the balance Assets under fi nance leases individual asset, the impairment require- On recognition of foreign subsidiaries tion results in income or expenses, amounts Company’s core activities, including removal sheet are recognised as expenses in the At the inception of the lease, leases in re- ment is assessed in respect of the smallest that are integrated entities, monetary items that have been deferred in equity are trans- expenses as well as profi ts and losses from profi t and loss account as incurred. spect of tangible fi xed assets in terms of group of assets for which it is possible to are translated at the exchange rates ruling ferred to the profi t and loss account in the the sale of intangible and tangible fi xed Development projects include salaries, which the individual group companies as- determine the recoverable amount. at the balance sheet date. Non-monetary period during which the hedged item affects assets. amortisation and other expenses that are direct- sume substantially all the risks and rewards items are translated at the rates at the time the profi t and loss account. ly or indirectly attributable to the Company’s of ownership (fi nance leases) are recog- Fixed asset investments of acquisition or at the time of any subse- Changes in the fair value of any deriva- Net fi nancials development activities. Capitalised develop- nised in the balance sheet at the fair value quent revaluation or impairment of the as- tive fi nancial instruments that do not qualify Financial income and expenses include in- ment costs are measured at the lower of of the leased asset where such an asset ex- Participating interests in subsidiaries set. Profi t and loss account items are trans- for hedge accounting are recognised im- terest, fi nancial expenses related to fi nance cost, less accumulated amortisation and im- ists. Alternatively, the net present value, if and associated undertakings lated at transaction-date exchange rates; mediately in the profi t and loss account. leases, realised and unrealised exchange pairment losses, and recoverable amount. lower, of future lease payments at the in- Participating interests in subsidiaries and however, items derived from non-monetary adjustments, price adjustments on securi- On completion of the development work, ception of the lease is applied. When com- associated undertakings are recognised and items are translated at the historical rates in Segment reporting ties as well as amortisation of long-term re- capitalised development costs are amort- puting the net asset value, the interest rate measured under the equity method in the respect of the non-monetary item. Segment information is presented in respect ceivables. ised on a straight-line basis over the period implicit in the lease is applied as the dis- Parent Company’s Annual Report. Exchange adjustments of intercompany of geographical markets based on the in which the work is expected to generate count rate or an approximated value. Assets The Parent Company profi t and loss ac- balances and transactions with foreign sub- Group’s internal fi nancial reporting system. Extraordinary income and expenses economic benefi ts. The amortisation period under fi nance leases are depreciated and count recognises the proportionate share of sidiaries that are considered additions to or Extraordinary income and expenses include is 5 years. impaired like the Group’s other tangible the subsidiaries’ results before tax for the deductions from the equity of independent Incentive schemes income and expenses attributable to events fi xed assets. year under the item ‘Profi t on ordinary ac- subsidiaries are recognised directly to The material provisions of the employee or transactions that are clearly distinct from Software The residual lease obligation is capital- tivities before tax in subsidiaries’, while the shareholders’ funds. Similarly, exchange share schemes are disclosed in the notes to the ordinary activities and are anticipated to Software is measured at the lower of cost, ised and recognised in the balance sheet share of tax in subsidiaries is included in the gains and losses on loans and derivative fi - the Group Accounts and have no effect on be non-recurring. less accumulated amortisation and impair- under debt, and the interest element on the item ‘Tax on profi t on ordinary activities’. nancial instruments contracted for hedging the profi t and loss account. At present, ment losses, and net asset value. The amor- lease payment is charged to the profi t and Group goodwill amortisation is presented purposes by independent foreign subsi- there are no incentive schemes. Balance Sheet tisation period is 3-5 years. loss account, as incurred, over the lease separately in the profi t and loss account un- diaries are recognised directly to share- term. der the item ‘Goodwill and group goodwill holders’ funds. Profi t and Loss Account Intangible fi xed assets Summary of the amortisation periods All other leases are considered as oper- amortisation’. Goodwill for intangible fi xed assets ating leases. Lease payments under operat- The Group’s and the Parent Company’s Derivative fi nancial instruments Net turnover Goodwill is amortised over the estimated Goodwill 5-20 years ing leases are recognised in the profi t and profi t and loss account includes the propor- Derivative fi nancial instruments are initially Net turnover corresponds to an approximate useful life determined on the basis of Man- Rights 5 years loss account over the lease term. tionate share of results before tax for the recognised in the balance sheet at cost and and prudently assessed sales value of work agement’s experience with the individual Development costs 5 years year of associated undertakings under the subsequently remeasured at their fair value. performed for the year. The completion of business areas. The amortisation period is Software 3-5 years Summary of depreciation periods for item ‘Profi t on ordinary activities before tax Positive and negative fair values of deri- the individual projects will generally pro- 5-20 years, the longest period applying to tangible fi xed assets in associated undertakings’, while the share vative fi nancial instruments are included in gress over several accounting periods and acquired undertakings with a strong market Tangible fi xed assets Buildings 50 years of tax in associated undertakings is included prepayments under assets and in deferred therefore the percentage-of-completion position and an expected long earnings pro- Special installations in in the item ‘Tax on profi t on ordinary activi- income under liabilities, respectively. method is applied for revenue recognition. fi l e . Land and buildings buildings 10-15 years ties’. Group goodwill amortisation is pre- Changes in the fair value of derivative fi - Profi ts on work performed are recognised Land and buildings are measured at cost Technical installations, sented separately in the profi t and loss ac- nancial instruments that are designated and as income accordingly and by reference to Rights less accumulated depreciation and impair- equipment and automobiles count under the item ‘Goodwill and group qualify as fair value hedges of a recognised the stage of completion. Rights are amortised on a straight-line basis ment losses and depreciated on a straight- including leasehold goodwill amortisation’. asset or liability are recognised in the profi t over 5 years. line basis over 50 years. improvements 3-10 years

47 Under the item ‘Participating interests in as- parative fi gures are generally not adjusted and the total expected profi t on the indi- Shareholders’ funds value (the capital loss) is recognised in paid in respect of extraordinary items and sociated undertakings’, the Group’s balance for new acquisitions and disposals. vidual projects (the percentage-of-com- the profi t and loss account over the loan corporation tax paid. sheet includes the relevant equity interest Any gains or losses on disposal or liqui- pletion method). This principle implies that Dividend period. Working capital includes current assets proportion of the net asset value of the as- dation of subsidiaries are computed as the the expected profi t on the individual projects Dividend is recognised as a liability at the Other debts are measured at amortised less short-term debt excluding items in- sociated undertakings measured under the difference between the sales sum or the is recognised in the profi t and loss account time of adoption by the Annual General cost, materially corresponding to nominal cluded in cash and cash equivalents. Parent Company’s accounting policies less liquidation amount and the net asset value on a current basis by reference to the stage Meeting. Dividend expected distributed for value. deduction or with addition of the share of of net assets at the time of disposal or liqui- of completion. the year is recorded in a separate item Cash fl ows from investing activities unrealised intercompany profi ts or losses. dation, including non-amortised goodwill as The stage of completion is measured by under shareholders’ funds. Deferred income and other liabilities Cash fl ows from investing activities include Under the items ‘Participating interests well as expected sales or liquidation ex- the proportion that project expenses in- End-of-period adjustments required by cash fl ows from acquisitions and disposals in subsidiaries’ and ‘Participating interests penses. Any gains or losses are recognised curred for work performed to date bear to Provisions accrual accounting recognised as deferred of intangible and tangible fi xed assets as in associated undertakings’, the Parent in the profi t and loss account. the estimated total project expenses. Where Provisions are recognised when—as a con- income under liabilities include payments well as fi xed asset investments. Company’s balance sheet includes the it is probable that total project expenses will sequence of an event occurred before or on received concerning income in respect of relevant equity interest proportion of the net Other investments and participating exceed the total revenues from a project, the balance sheet date—the Group has a subsequent periods as well as adjustments Cash fl ows from fi nancing activities asset value of the undertakings measured interests the expected loss is recognised as an legal or constructive obligation and it is to fair value of derivative fi nancial instru- Cash fl ows from fi nancing activities include under the Parent Company’s accounting Other investments and participating interests expense in the profi t and loss account. probable that economic benefi ts must be ments with a negative fair value. cash fl ows from the raising and repayment policies less deduction and with addition of include bonds and shares measured at fair The share of work in progress etc. per- sacrifi ced to settle the obligation. of long-term debt as well as purchase of the share of unrealised intercompany profi ts value at the balance sheet date. Listed formed in joint ventures is included in work Other provisions include legal obligations Cash Flow Statement own shares and dividend payments to or losses. securities are measured at the offi cial market i n p r o g r e s s . etc. on completed projects. Provisions with shareholders. Subsidiaries and associated undertak- price at the balance sheet date. Unlisted an expected maturity exceeding one year The cash fl ow statement shows the Group’s ings with a negative net asset value are securities are measured at sales value Own shares from the balance sheet date are discounted cash fl ows for the year distributed on oper- Cash and cash equivalents measured at DKK zero and any receivable based on a computed net present value. Own shares are participating interests at the average bond yield. Deferred tax is ating, investing and fi nancing activities, net Cash and cash equivalents include cash at from these undertakings are written down, acquired by COWI A/S for use in future not discounted to present value. changes for the year in cash and cash bank and in hand as well as securities recog- to the extent estimated to be uncollectible, Current assets allotments to employees. Own shares are equivalents as well as Group cash and cash nised as current asset investments. by the Parent Company share of the nega- measured at cost and tied up in a special Financial debts equivalents at the beginning and end of the The cash fl ow statement cannot be im- tive net asset value. Where the negative net Accounts receivable reserve under shareholders’ funds. Any Fixed-rate loans such as mortgages and year. mediately derived from the published fi nan- asset value exceeds the amount receivable, Accounts receivable are measured at the gains/losses on disposal are recognised in loans from credit institutions intended held cial records. the residual amount is recognised under lower of amortised cost and net realisable the profi t and loss account. to maturity are recognised initially at the Cash fl ows from operating activities provisions to the extent where the Parent value corresponding to a nominal value less proceeds received net of transaction Cash fl ows from operating activities are cal- Financial ratios Company has a legal or constructive obligation impairment losses for uncollectibles. Impair- Current asset investments expenses incurred. In subsequent periods, culated as Group results adjusted for non- to cover the undertaking’s negative balance. ment losses are calculated on the basis of Current asset investments include listed borrowings are stated at amortised cost cor- cash operating items such as amortisation, The fi nancial ratios stated in Key Figures The total net revaluation of participating an individual assessment of each account bonds and shares measured at fair value at responding to the capitalised value using depreciation and impairment losses, provi- and Financial Ratios have been calculated interests in subsidiaries and associated receivable, and in respect of trade accounts the balance sheet date. Listed securities are the effective interest method; the difference sions as well as net change in working capi- as follows: undertakings is transferred in the Parent receivable, an additional general provision is measured at market price. Non-listed secu- between the proceeds and the nominal tal, interest income and expenses, amounts Company over the distribution of profi t to made. rities are measured at sales value based on ‘Reserve for net revaluation according to the a calculated net present value. Operating profi t x 100 Operating margin equity method’ under shareholders’ funds. Work in progress for the account of Net turnover Positive and negative differences are others Prepayments separately included under the item ‘Group End-of-period adjustments required by Operating profi t x 100 Work in progress for the account of others is Return on invested capital goodwill’ both in the Parent Company’s recognised in the balance sheet net of accrual accounting recognised as prepay- Non-fi nancial assets less advance invoicing, end-of-year balance sheet and in the Group Accounts. amounts invoiced in advance. Work in ments under assets include payments made Equity excl. minority interests, end-of-year x 100 Undertakings acquired during the fi nan- progress gross is measured at an ap- in respect of subsequent fi nancial years, Equity ratio cial year are included in the Parent Com- proximate and prudently estimated sales typically prepaid rent, insurance premiums, Total liabilities and equity, end-of-year pany and Group Accounts from the time of value of the work performed. The sales subscriptions etc. as well as adjustments to acquisition, and undertakings disposed of fair value of derivative fi nancial instruments COWI-Group share of profi t for the year x 100 value is measured in proportion to the stage Return on equity are included until the time of disposal. Com- of completion at the balance sheet date with a positive fair value. Average equity excl. minority interests

48 49 Proﬁ t and Loss Account

PARENT COMPANY GROUP 2000/01 2001/02 DKK ‘000 Note 2001/02 2000/01

1,273,150 1,363,506 Net turnover 1 1,720,377 1,533,247 PORTRAIT (360,922) (376,042) Project expenses (431,892) (381,883) 912,228 987,464 Own production 1,288,485 1.151,364 (144,990) (161,736) External expenses 2 (228,350) (191,841) (703,522) (750,563) Staff expenses 3 (967,072) (872,956) (25,088) (27,700) Amortisation, depreciation and writedowns 4 (41,025) (40,362) 38,628 47,465 Operating profi t on ordinary activities 52,038 46,205 (3,793) (1,081) Other operating expenses, net 5 (1,256) (1,760) 34,835 46,384 Operating profi t 50,782 44,445 Profi t on ordinary activities before tax 11,814 7,420 in subsidiaries 6 - - Profi t on ordinary activities in - 102 associated undertakings 7 (67) 385 Goodwill and group goodwill (9,198) (6,860) amortisation 4 - - 26,600 21,920 Financial income 8 24,130 27,331 (21,741) (15,962) Financial expenses 9 (18,075) (26,840) 42,310 53,004 Profi t on ordinary activities before tax 56,770 45,321 (9,097) (17,282) Tax on profi t on ordinary activities 10 (18,486) (10,003) 33,213 35,722 Profi t on ordinary activities after tax 38,284 35,318 Building schools is fun - - Profi t on extraordinary activities after tax - - 33,213 35,722 Profi t for the year 38,284 35,318 Profi t from subsidiaries attributable to Project Manager Charlotte Nørbak prioritises education - - minority shareholders (2,562) (2,105) 33,213 35,722 COWI Group share of profi t for the year 35,722 33,213 Almost three years ago, Project Manager volve themselves in educational issues. Charlotte Nørbak is highly committed to the Charlotte Nørbak’s interest in the fi eld of She arranges seminars at which politi- educational sector but it is not her whole Proposed distribution of net profi t education was sharpened with a project in cians, educationalists and construction life. In fact, she resigned from the parent- the Copenhagen suburb of Gentofte—the specialists meet to debate school develop- teacher association of her children’s school DKK ‘000 most visionary school development and ex- ment and its physical parameters, writes because she wanted to devote her spare 3,475 3,475 Proposed dividend at 10% tension project in the country, SKUB. At that articles, takes part in study trips and joins time to non-educational pursuits. time she was employed at Carl Bro and as a multi-disciplinary networks where the edu- And they keep her very busy; she rides, 29,738 32,247 Retained earnings leading light in SKUB, she produced a com- cational sector is shaped. and organises and takes part in events 33,213 35,722 prehensive action plan for school develop- “It’s fun to build schools as their diver- with colleagues at the Consulting Engineers’ ment in Gentofte. This gave her a unique sity of facilities such as physics laboratories, Orienteering Club. knowledge that she makes use of today as sports facilities, workshop centres and market coordinator of the education market computer centres demand the involvement Project Manager Charlotte Nørbak, @ [email protected] in COWI. of a wide range of experts such as re- With presentation material and an inter- searchers, teachers, architects, IT special- net website on education, she encourages ists and engineers,” she says. colleagues in all COWI departments to in-

50 51 Balance Sheet

PARENT COMPANY GROUP PARENT COMPANY GROUP 2000/01 2001/02 DKK ‘000 Note 2001/02 2000/01 2000/01 2001/02 DKK ‘000 Note 2001/02 2000/01

908 47 Goodwill and rights 169 908 34,750 34,750 Share capital 34,750 34,750 10,721 15,659 Group goodwill 15,659 10,898 5,881 5,881 Share premium account 5,881 5,881 11,234 7,062 Software 7,730 11,234 6,602 6,602 Reserve for own shares 10,131 6,602 22,863 22,768 Intangible fi xed assets 11 23,558 23,040 309,768 342,385 Retained earnings 338,856 309,768 4,165 5,738 Land and buildings 5,738 4,165 3,475 3,475 Proposed dividend 3,475 3,475 73,653 79,371 Technical installations, equipment and automobiles 91,401 84,210 360,476 393,093 Shareholders’ funds 18 393,093 360,476 - - Fixed assets in course of construction 158 - - - Minority interests 19 11,655 8,895 77,818 85,109 Tangible fi xed assets 12 97,297 88,375 137,966 153,950 Credit institutions 20 156,482 141,629 55,633 79,585 Participating interests in subsidiaries 6 - - - - Other provisions 21 5,687 5,223 931 1,910 Participating interests in associated 137,966 153,950 Provisions 162,169 146,852 undertakings 7 3,609 2,702 9,662 8,243 Credit institutions 8,243 9,662 20,503 13,093 Loans to subsidiaries - - - - Other accounts payable 269 80 178 290 Other investments and participating interests 1,545 313 9,662 8,243 Long-term debt 22 8,512 9,742 77,245 94,878 Fixed asset investments 13 5,154 3,015 Current portion of 177,926 202,755 Total fi xed assets 126,009 114,430 2,882 3,083 long-term debt 3,083 2,882 312,677 303,234 Accounts receivable, services 379,060 377,595 12,599 9,272 Credit institutions 9,272 43,977 115,354 118,981 Work in progress, net 14 175,592 146,674 6,606 8,099 Amounts owed to subsidiaries - - 13,716 5,877 Amounts owed by subsidiaries - - - - Amounts owed to associated undertakings - 169 1,100 2,317 Amounts owed by associated undertakings 2,317 2,214 56,171 45,086 Accounts payable, suppliers 61,111 71,337 36,929 30,925 Other receivables 39,622 92,480 47,918 34,866 Taxes and V.A.T. payable 54,679 54,532 30,397 35,712 Prepayments 15 38,053 33,066 186,173 186,792 Amounts invoiced in advance 23 205,308 195,970 510,173 497,046 Accounts receivable 634,644 652,029 99,657 104,383 Accrued holiday allowance 122,392 126,259 6,602 6,602 Own shares 16 10,131 6,602 18,017 17,738 Other accounts payable 31,449 25,248 232,775 235,745 Current asset investments 17 235,745 232,775 14,091 12,802 Deferred income 19,706 23,909 24,742 35,259 Cash at bank and in hand 75,900 64,412 444,114 422,121 Short-term debt 507,000 544,283 774,292 774,652 Total current assets 956,420 955,818 453,776 430,364 Total debt 515,512 554,025 952,218 977,407 TOTAL ASSETS 1,082,429 1,070,248 TOTAL LIABILITIES AND 952,218 977,407 SHAREHOLDERS’ FUNDS 1.082,429 1.070,248

Contingent liabilities, commitments and guarantees 24 Notes without reference 25-28

52 53 Statement of changes in shareholders’ funds

Statement of changes in shareholders’ funds of the COWI Group Statement of changes in shareholders’ funds of COWI A/S

GROUP PARENT COMPANY Share Reserve Share Reserve Share premium for own Retained Proposed Share premium for own Retained Proposed DKK ‘000 capital account shares earnings dividend Total DKK ‘000 capital account shares earnings dividend Total Shareholders’ funds Shareholders’ funds at 1 May 2000 34,750 5,881 474 256,413 0 297,518 at 1 May 2000 34,750 5,881 474 256,413 0 297,518 Accounting policy change 29,758 3,475 33,233 Accounting policy change 29,758 3,475 33,233 Adjusted shareholders’ Adjusted shareholders’ funds funds at 1 May 2000 34,750 5,881 474 286,171 3,475 330,751 at 1 May 2000 34,750 5,881 474 286,171 3,475 330,751 Distributed dividend (3,475) (3,475) Distributed dividend (3,475) (3,475) Profi t for the year 33,213 33,213 Profi t for the year 33,213 33,213 Exchange adjustment, Exchange adjustment, foreign subsidiaries 226 226 foreign subsidiaries 226 226 Value adjustment, hedging Value adjustment, hedging instruments, end-of-year (239) (239) instruments, end-of-year (239) (239) Purchase of own shares 6,128 (6,128) - Purchase of own shares 6,128 (6,128) - Proposed dividend (3,475) 3,475 - Proposed dividend (3,475) 3,475 - Shareholders’ funds Shareholders’ funds at 1 May 2001 34,750 5,881 6,602 309,768 3,475 360,476 at 1 May 2001 34,750 5,881 6,602 309,768 3,475 360,476 Distributed dividend (3,475) (3,475) Distributed dividend (3,475) (3,475) Profi t for the year 35,722 35,722 Profi t for the year 35,722 35,722 Exchange adjustment, Exchange adjustment, foreign subsidiaries (153) (153) foreign subsidiaries (153) (153) Value adjustment, participating interests Value adjustment, participating in associated undertakings 481 481 interests in associated undertakings 481 481 Value adjustment of hedging Value adjustment of hedging instruments, beginning-of-year 239 239 instruments, beginning-of-year 239 239 Value adjustment of hedging Value adjustment of hedging instruments, end-of-year (197) (197) instruments, end-of-year (197) (197) Purchase of own shares 3,529 (3,529) - Proposed dividend (3,475) 3,475 - Proposed dividend (3,475) 3,475 - Shareholders’ funds Shareholders’ funds at 30 April 2002 34,750 5,881 6,602 342,385 3,475 393,093 at 30 April 2002 34,750 5,881 10,131 338,856 3,475 393,093

54 55 Cash Flow Statement

GROUP DKK ´000 Note 2001/02 2000/01 Operating profi t 50,782 44,445 Amortisation and depreciation for the year as well as profi t/(loss) from disposal of fi xed assets 41,704 38,771 Unrealised value adjustments for the year, net (8,204) 844 Other provisions for the year 6,444 (8,974) Operating profi t adjusted for non-cash movements 90,726 75,086 Net fi nancial income paid for the year 14,679 6,164 Corporation tax paid (3,829) (5,569) Cash fl ow from operating activities before change in working capital 101,576 75,681 Change in work in progress (3,305) 22,139 Change in accounts receivable 12,406 (18,803) Change in accounts payable (12,172) 5,625 PORTRAIT Change in other receivables and prepayments 40,640 (42,812) Change in other payables and accrued income (14,416) 1,208 Cash fl ow from operating activities 124,729 43,038 Acquisition of intangible fi xed assets (2,620) (18,067) Know your municipality Disposal of intangible fi xed assets 7 3,070 Acquisition of tangible fi xed assets (37,574) (32,360) Disposal of tangible fi xed assets 1,355 62,313 Chartered surveyor Jørgen Pedersen’s Active Map of Acquisition of subsidiaries and activities 27 (26,818) - Aalborg has made life easier for the town’s residents Disposal of other fi xed asset investments (1,751) - Disposal of fi xed asset investments 57 3 COWI Project Manager Jørgen Pedersen is a particular area. For the Municipality of Pedersen states that the Active Map is one Cash fl ow from investing activities (67,344) 14,959 making life easier for the people of Aalborg. Aalborg, this opens up new horizons. of the most interesting projects he has been As Project Manager of the Active Map of “One of the most interesting features in involved in; no limits have been imposed on Free cash fl ow 57,385 57,997 Aalborg, the 47-year-old chartered surveyor the Active Map of Aalborg is the map from the creativity of the ideas that emerge from Repayment of fi nancial accounts payable (35,923) (40,641) and GIS consultant has helped create a 1900. You can click on a specifi c town area the dialogue between the municipality and Shareholders: world of easily accessible information that and see what it looked like then. But it also the other two companies. He has drawn on Distributed dividend (3,475) (3,475) the residents can click into 24 hours a day. offers very practical help in fi nding schools his many years of experience in manage- This raises service levels, makes case treat- and kindergartens,” says Jørgen Pedersen. ment, GIS and his unbound enthusiasm Purchase of own shares (3,529) (6,128) ment more effi cient and contributes to en- The Active Map of Aalborg, which will be throughout the project. And on his two teen- Cash fl ow from fi nancing activities (42,927) (50,244) hanced democratisation. fi nalised in 2003, is a joint development age sons, who let him know what is hot Cash fl ow for the year 14,458 7,753 The Active Map of Aalborg, an internet project between the Municipality of Aalborg, —or not. Cash and cash equivalents, beginning-of-year 297,187 289,434 service for the entire population of Den- Informi GIS, the SAS Institute and COWI. mark, harnesses the strength of a Geo- The project is part of a larger event called Project Manager Jørgen Pedersen, Cash and cash equivalents, end-of-year 28 311,645 297,187 @ [email protected] graphical Information System (GIS) to dis- Digital North Jutland, part of an IT and play, process and analyse information in telecommunications action plan. Jørgen The cash fl ow statement cannot be immediately derived from the profi t and loss account.

56 57 Notes Note 4 Amortisation, depreciation and writedowns PARENT COMPANY GROUP Note 1 Turnover 2000/01 2001/02 DKK ‘000 2001/02 2000/01

PARENT COMPANY GROUP (5,385) (5,490) Software (5,965) (5,733) 2000/01 2001/02 DKK ‘000 2001/02 2000/01 (175) (593) Land and buildings (593) (175) (19,528) (21,617) Technical installations, equipment and automobiles (27,541) (25,256) 735,330 817,192 Domestic net turnover 817,192 735,330 (25,088) (27,700) (34,099) (31,164) 537,820 546,314 Foreign net turnover 903,185 797,917 (2,579) (861) Goodwill and rights (927) (2,579) 1.273,150 1.363,506 Net turnover 1,720,377 1,533,247 (6,619) (5,999) Group goodwill (5,999) (6,619) (34,286) (34,560) Amortisation, depreciation and writedowns (41,025) (40,362) Note 2 Fees for auditor elected by the Annual General Meeting

PARENT COMPANY GROUP Note 5 Other operating expenses, net 2000/01 2001/02 DKK ‘000 2001/02 2000/01 PARENT COMPANY GROUP (975) (975) Audit fee (2,387) (1,866) 2000/01 2001/02 DKK ‘000 2001/02 2000/01 (2,095) (915) Fees, services other than audit (1,943) (2,607) 50 - Profi t from sale of fi xed assets - 2,083 Total fees for auditor elected by (3,070) (1,890) the Annual General Meeting (4,330) (4,473) (2,473) (679) Loss from sale of fi xed assets (679) (2,473) (1,370) (402) Removal expenses (577) (1,370) (3,793) (1,081) Other operating expenses, net (1,256) (1,760) Note 3 Staff expenses

PARENT COMPANY GROUP Note 6 Participating interests in subsidiaries 2000/01 2001/02 DKK ‘000 2001/02 2000/01 COWI Group’s share Remuneration for Board of Directors, Profi t on (576) (621) Parent Company (621) (576) Share- ordinary Share- Ownership Share holders’ Profi t for activities holders’ (678,602) (724,834) Wages and salaries (900,709) (816,176) Name Domicile share capital funds the year before tax funds (5,364) (8,137) Pensions and social security (34,017) (23,454) (1.000) DKK ‘000 DKK ‘000 DKK ‘000 DKK ‘000 (18,980) (16,971) Other staff expenses (31,725) (32,750) Bau- und Umweltplanung GmbH Germany 100% 500 DEM 12,561 (6,409) (10,642) 12,561 (703,522) (750,563) Staff expenses (967,072) (872,956) Ben C. Gerwick Inc. USA 93% 766 USD 13,811 2,408 4,553 12,830 Bruun & Sørensen Energiteknik A/S Denmark 100% 1,000 DKK (4,078) 504 504 (4,078) (5,977) (6,356) Remuneration, Executive Management (6,356) (5,977) COMAR Engineers A/S Denmark 100% 849 DKK 1,882 45 45 1,882 COWI Belgium SPRL Belgium 100% 7 EUR 60 (68) (68) 60 Current and defi ned pension commitments have COWI Canada Ltd. Canada 100% 1,079 CAD 2,793 6,052 4,969 2,793 (15,200) (13,600) been recognised under Contingent liabilities with (13,600) (15,200) COWI Hungary Ltd. Hungary 100% 50,000 HUF 2,201 185 214 2,201

COWI Philippines Inc. Philippines 100% 5,846 PHP 396 288 470 396 1,665 1,695 Average number of employees 2,318 2,203 COWI Polska Sp. z.o.o. Poland 100% 223 PLN (167) (798) (1,874) (167) COWI Tanzania Consulting Engineers and Planners Ltd. Tanzania 100% 20,000 TZS 1,380 705 1,636 1,380 COWI-Almoayed Gulf W.L.L. Bahrain 49% 20 BHD 476 455 558 233 COWIconsult International Ltd. Great Britain 100% 10 GBP (541) (12) (8) (541) Enviroplan International A/S Denmark 100% 500 DKK 520 5 7 520 contd.

58 59 Note 6 Participating interests in subsidiaries (contd.) Note 8 Financial income

COWI Group’s share PARENT COMPANY GROUP Profi t on 2000/01 2001/02 DKK ‘000 2001/02 2000/01 Share- ordinary Share- Ownership Share holders’ Profi t for activities holders’ 12.649 14.697 Interest, cash at bank and in hand and securities, etc. 17.447 15.276 Name Domicile share capital funds the year before tax funds 3.344 1.624 Interest, group companies - - (1.000) DKK ‘000 DKK ‘000 DKK ‘000 DKK ‘000 Realised and unrealised capital gains, ETC GmbH Germany 80% 1.790 EUR 21.573 2.014 3.424 17.258 10.287 3.820 investments 3.820 10.287 Hjellnes COWI A/S Norway 70% 4.678 NOK 23.916 2.387 3.393 17.800 320 1.779 Foreign exchange gains 2.863 1.768 Matcon Rådgivende 26.600 21.920 Financial income 24.130 27.331 Ingeniørfi rma A/S Denmark 100% 500 DKK 1.633 218 218 1.633 MMS Norge A/S Norway 100% 100 NOK 131 28 36 131 OC Rådgivende Ingeniører A/S Denmark 100% 5.960 DKK 5.785 (21) (21) 5.785 Note 9 Financial expenses Studstrup og Østgaard A/S Denmark 100% 1.125 DKK 1.912 232 348 1.912 PARENT COMPANY GROUP UAB COWI Baltic Consulting 2000/01 2001/02 DKK ‘000 2001/02 2000/01 Engineers and Planners Lithuania 100% 200 LTL 210 (342) (342) 210 7.420 74.799 (1.546) (1.433) Interest, bank and mortgage debt, etc. (3.571) (6.310) For companies with negative shareholders’ funds, a set-off has been effected in accounts receivable - 4.786 - (251) Interest, group companies - - 7.420 79.585 Realised and unrealised capital loss, All subsidiaries are independent entities. (12.714) (12.617) investments (12.617) (12.714) (7.481) (1.661) Foreign exchange loss (1.887) (7.816) (21.741) (15.962) Financial expenses (18.075) (26.840)

Note 7 Participating interests in associated undertakings COWI Group’s share Profi t on Note 10 Tax on profi t for the year Share- ordinary Share- Ownership Share holders’ Profi t for activities holders’ PARENT COMPANY GROUP Name Domicile share capital funds the year before tax funds 2000/01 2001/02 DKK ‘000 2001/02 2000/01 (1.000) DKK ‘000 DKK ‘000 DKK ‘000 DKK ‘000 - - Current tax (3.278) (5.569) Casa Nova I/S Denmark 35% - 232 0 0 81 Current tax, foreign CAT Alliance Ltd. United Kingdom 33% 100 GBP 1.202 0 0 401 (1.461) (550) project offi ces (550) (1.461) Covitecma S.A. Spain 25% 60.000 ESP 2.129 250 62 532 (12.638) (18.410) Deferred tax (17.077) (12.638) Danport A/S Denmark 50% 500 DKK 501 10 5 251 - (7) Tax in associated undertakings (7) - Danrail Consult A/S Denmark 33% 525 DKK 537 (3) (1) 179 (4.663) (741) Tax in group companies - - Yan-Dan Ltd. China 30% 1.244 CNY 1.553 121 36 466 9.665 2.426 Deferred tax for previous years carried back 2.426 9.665 102 1.910 (9.097) (17.282) Tax on profi t for the year (18.486) (10.003) Aviaplan A/S Norway 33% 804 NOK 1.866 (676) (213) 612 Nordplan A/S Norway 33% 1.500 NOK 3.265 138 44 1.087 broken down as follows: (67) 3.609 (9.097) (17.282) Tax on profi t on ordinary activities (18.486) (10.003) - - Tax on profi t on extraordinary activities, cf. note 12 - - (9.097) (17.282) Tax on profi t for the year (18.486) (10.003) - - Tax on movements in shareholders’ funds - - (9.097) (17.282) Total tax on profi t for the year (18.486) (10.003) contd.

60 61 Note 10 Tax on profi t for the year (contd.) Note 12 Tangible fi xed assets GROUP PARENT COMPANY GROUP Technical 2000/01 2001/02 DKK ‘000 2001/02 2000/01 installations, Assets in equipment course of Land and and auto- construc- Tax on profi t on ordinary activities can be broken down as follows: DKK ‘000 buildings mobiles tion Total Tax on profi t on ordinary activities Cost at 1 May 2001 7,500 326,158 - 333,658 (12,693) (15,901) before tax calculated at 30% (17,031) (13,596) Additions 2,165 37,923 158 40,246 Adjustment of tax calculated in foreign group (4,160) 567 undertakings in proportion to 30% 567 (4,160) Disposals - 120,118 - 120,118 Tax effect from: Cost at 30 April 2002 9,665 243,963 158 253,786 Book amortisation of goodwill Revaluations at 1 May 2001 1,156 - - 1.156 (1,986) (1,800) disallowed for tax purposes (1,800) (1,986) Revaluation written back (1,156) - - (1,156) 77 (2,574) Other costs disallowed for tax purposes (2,648) 74 Revaluations at 30 April 2002 - - - - 9,665 2,426 Adjustment of taxes for previous years 2,426 9,665 Depreciation and writedowns at 1 May 2001 3,334 243,105 - 246,439 (9,097) (17,282) (18,486) (10,003) Depreciation and writedowns 593 27,541 - 28,134 21,5% 32,6% Effective tax rate 32,6% 22,1% Disposals - 118,084 - 118,084 Depreciation and writedowns at 30 April 2002 3,927 152,562 - 156,489 Net book value at 30 April 2002 5,738 91,401 158 97,297 Note 11 Intangible fi xed assets GROUP PARENT COMPANY Goodwill Group DKK ‘000 and rights goodwill Software Total Technical installations, Assets in Cost at 1 May 2001 19,914 22,760 47,177 89,851 equipment course of Land and and auto- construc- Additions 11 10,937 2,467 13,415 DKK ‘000 buildings mobiles tion Total Disposals - - 15,980 15,980 Cost at 1 May 2001 7,500 269,716 - 277,216 Cost at 30 April 2002 19,925 33,697 33,664 87,286 Additions 2,165 29,306 - 31,471 Amortisation and writedowns at 1 May 2001 18,829 12,039 35,943 66,811 Disposals - 118,618 - 118,618 Amortisation 927 5,999 5,965 12,891 Cost at 30 April 2002 9,665 180,404 - 190,069 Disposals - - 15,974 15,974 Revaluations at 1 May 2001 1,156 - - 1,156 Amortisation and writedowns at 30 April 2002 19,756 18,038 25,934 63,728 Revaluation written back (1,156) - - (1,156) Net book value at 30 April 2002 169 15,659 7,730 23,558 Revaluations at 30 April 2002 - - - - Depreciation and writedowns at 1 May 2001 3,334 196,063 - 199,397 PARENT COMPANY Depreciation and writedowns 593 21,617 - 22,210 Goodwill Group Disposals - 116,647 - 116,647 DKK ‘000 and rights goodwill Software Total Depreciation and writedowns at 30 April 2002 3,927 101,033 - 104,960 Cost at 1 May 2001 19,593 22,760 42,177 84,530 Net book value at 30 April 2002 5,738 79,371 - 85,109 Additions - 10,937 1,325 12,262 Disposals - - 15,959 15,959 At 1 January 2002, the offi cial valuation of Danish properties with a net book value of DKK 5,738 thousand Cost at 30 April 2002 19,593 33,697 27,543 80,833 amounted to DKK 9,130 thousand. Amortisation and writedowns at 1 May 2001 18,685 12,039 30,943 61,667 Amortisation 861 5,999 5,490 12,350 Disposals - - 15.952 15.952 Amortisation and writedowns at 30 April 2002 19,546 18,038 20,481 58,065 Net book value at 30 April 2002 47 15,659 7,062 22,768

62 63 Note 13 Fixed asset investments Note 14 Work in progress, net GROUP Other PARENT COMPANY GROUP Participating investments 2000/01 2001/02 DKK ‘000 2001/02 2000/01 interests in and partici- associated pating 1,529,879 1,546,441 Work in progress, direct expenses 1,702,768 1.653,207 DKK ‘000 undetakings interests Total Addition for indirect expenses and interim Cost at 1 May 2001 3,340 922 4,262 728,295 664,577 proﬁ t from on-account payments 792,481 829,200 Additions 959 1,142 2,101 2.258.174 2.211.018 Work in progress, gross 2,495,249 2.482,407 Disposals 169 - 169 (2.142,820) (2.092,037) Amounts invoiced on account (2,319,657) (2.335,733) Cost at 30 April 2002 4,130 2,064 6,194 115,354 118,981 Work in progress, net 175,592 146,674 Revaluations at 1 May 2001 3 19 22

Additions 95 - 95 Broken down as follows on domestic and foreign projects: Disposals - - - 58.393 56.270 Domestic projects 56,270 58,393 Revaluations at 30 April 2002 98 19 117 56,961 62,711 Foreign projects 119,322 88,281 Writedowns at 1 May 2001 619 650 1,269 115,354 118,981 175,592 146,674 Additions - - - Disposals - 112 112 Writedowns at 30 April 2002 619 538 1,157 Note 15 Prepayments Net book value at 30 April 2002 3,609 1,545 5,154 PARENT COMPANY GROUP 2000/01 2001/02 DKK ‘000 2001/02 2000/01

PARENT COMPANY 10,808 10,827 Insurance premiums 12,067 11,535 Participating Participating Other 11,994 12,554 Rent 12,554 11,994 interests interests investments 7,595 12,331 Other 13,432 9,537 in subsid- in asso- Loans to and partici- iaries ciated subsid- pating 30,397 35,712 Prepayments 38,053 33,066 DKK ‘000 underakings iaries interests Total Cost at 1 May 2001 65,816 1,548 20,743 809 88,916 Additions 22,034 883 - - 22,917 Note 16 Own shares Disposals - - 7,650 - 7,650 PARENT COMPANY Cost at 30 April 2002 87,850 2,431 13,093 809 104,183 Share of Nominal Revaluations at 1 May 2001 16,332 3 - 19 16,354 DKK ‘000 sharehold- share- Acquisi- ers’ funds holding tion price Additions 3,756 95 - - 3,851 Cost at 1 May 2.2% 772 6,602 Disposals - - - - - Additions for the year - - - Revaluations at 30 April 2002 20,088 98 - 19 20,205 Disposals for the year - - - Writedowns at 1 May 2001 26,515 619 240 650 28,024 Shareholding at 30 April 2.2% 772 6,602 Additions 5,316 - - - 5,316 Disposals 3,478 - 240 112 3,830 Note 17 Current asset investments Writedowns at 30 April 2002 28,353 619 - 538 29,510 PARENT COMPANY Net book value at 30 April 2002 79,585 1,910 13,093 290 94,878 DKK ‘000 2001/02 2000/01 Shares 40,626 27,923 Bonds 195,119 204,852 Portfolio at 30 April 235,745 232,775

64 65 Note 18 Shareholders’ funds Note 19 Minority interests Note 21 Other provisions GROUP The share capital consists of: DKK ‘000 2001/02 2000/01 PARENT COMPANY GROUP 2000/01 2001/02 DKK ‘000 2001/02 2000/01 2001/02 Minority interests at 1 May 8,895 6,893 Share of proﬁ t for the year 2,562 2,105 DKK ‘000 - - Guarantees at 1 May 5,223 5,223 Exchange adjustment 198 (103) A shares: - - Adjustment for the year 464 - Minority interests at 30 April 11,655 8,895 2 shares of each DKK. 1,000 2 - - Guarantees at 30 April 5,687 5,223 1 share of DKK 2,998,000 2,998 - - Other provisions - - 1 share of DKK 7,000,000 7,000 - - Other provisions at 30 April 5,687 5,223 1 share of DKK 10,000,000 10,000 20,000 Note 22 Long-term debt

B shares: PARENT COMPANY GROUP 2000/01 2001/02 DKK ‘000 2001/02 2000/01 147,500 shares of each DKK 100 100 14,750 14,750 Long-term debt falling due 1,927 1,486 after more than 5 years 1,486 1,927

Each A share of DKK 100 carries 10 votes whereas each Long-term debt falling due B share of DKK 100 carries 1 vote. 7,735 6,757 between 1 and 5 years 7,026 7,815 9,662 8,243 Long-term debt 8,512 9,742

Note 20 Deferred tax

PARENT COMPANY GROUP Note 23 Amounts invoiced in advance 2000/01 2001/02 DKK ‘000 2001/02 2000/01 PARENT COMPANY GROUP 134,993 137,966 Deferred tax at 1 May 141,629 138,656 2000/01 2001/02 DKK ‘000 2001/02 2000/01 (9,665) (2,426) Reversal concerning previous years (2,426) (9,665) Broken down as follows between 12,638 18,410 Deferred tax for the year 17,077 12,638 domestic and foreign projects - - Addition on acquisition of group company 202 - 77,339 74,748 Domestic projects 74,748 77,339 137,966 153,950 Deferred tax at 30 April 156,482 141,629 108,834 112,044 Foreign projects 130,560 118,631 186,173 186,792 Amounts invoiced in advance 205,308 195,970 Deferred tax concerns: (1,332) (1,262) Intangible ﬁ xed assets (1,262) (1,332) (5,530) (4,683) Tangible ﬁ xed assets (3,318) (3,516) Note 24 Contingent liabilities, commitments and guarantees 1,502 (309) Fixed asset investments (308) 1,502 PARENT COMPANY GROUP 160,226 163,445 Current assets 162,547 161,875 2000/01 2001/02 DKK ‘000 2001/02 2000/01 - - Provisions 810 - Contingent liabilities (2,100) (2,100) Debt (846) (2,100) Lease commitments (operating leases) expiring (14,800) (1,141) Tax-loss carryforwards (1,141) (14,800) 3,027 3,053 within 5 years with a total of 26,610 22,102 137,966 153,950 156,482 141,629 272,487 247,467 Rental commitments in the period of termination 247,467 272,487 285,485 263,555 Recourse guarantees and performance bonds 263,555 285,485 45,489 21,348 Other guarantees and charges 23,028 47,169 15,200 13,600 Pension commitments 13,600 15,200 contd.

66 67 Note 24 Contingent liabilities, commitments and guaranties (contd.) Note 26 Board of Directors and Executive Management (contd.) Henrik Brade Johansen PARENT COMPANY GROUP Eigil Steen Pedersen 2000/01 2001/02 DKK ‘000 2001/02 2000/01 Berit Benkel * Contigent liabilities (contd.) Henriette R. Bundgaard * The Group’s Danish companies are jointly and severally Michael Steen Jacobsen * liable for tax on Group income subject to joint taxation. Lars Rosholm Jørgensen * By virtue of its business operations, the COWI Group is a party to legal disputes that can be expected in the course of its business operations. In the opinion of Executive Management Management, no material liabilities are incumbent on Klaus H. Ostenfeld, Managing Director, CEO the Company as a consequence of this. Keld Sørensen, Financial Director, CFO Current restructuring expenses are charged to the profi t Knud Østergaard Hansen, Executive Director, Danish Operations and loss account as incurred. Henning H. Therkelsen, Executive Director, International Operations Together with other consultants, COWI A/S has entered into joint ventures and in this connection COWI A/S is liable for any joint liabilities. (CB) = Chairman of the Board of Directors (MB) = Member of the Board of Directors Guarantees (M) = Manager The following assets have been provided as guarantees to credit institutions: *) Staff representatives Technical installations, equipment and 12,544 11,026 automobiles at a net book value of 11,026 12,544 Note 27 Acquisition of subsidiaries Note 28 Cash and cash equivalents Furthermore, COWI A/S has a total guarantee facility of DKK 400 million of which DKK 264 million has GROUP GROUP been spent at 30 April 2002 for performance bonds DKK ‘000 2001/02 2000/01 DKK ‘000 2001/02 2000/01 in connection with projects in progress. Intangible fi xed assets 818 - Cash and cash equivalents at Note 25 Related party transactions Tangible fi xed assets 1,517 - 30 April include: Securities 235,745 232,775 The COWI FOUNDATION owns all A shares in the Company and exercises controlling infl uence on the Fixed asset investments 364 Company. The COWI FOUNDATION does not carry on any independent business, and no material transactions Work in progress 16,275 - Cash at bank and in hand 75,900 64,412 are conducted between the Foundation and the Company. Accounts receivable 13,871 - Cash and cash equivalents No transactions with other related parties are conducted. at 30 April 311,645 297,187 Cash at bank and in hand 2,763 - Provisions (3,155) Committed credit facilities at Note 26 Board of Directors and Executive Management Bank debt (1,102) - 30 April (not including guarantee facilities) 86,304 51,621 The Company’s directors and members of Executive Management hold the following directorships and Deferred tax (202) - executive functions in other companies not including the 100%-owned COWI subsidiaries: Accounts payable, suppliers (1,946) - Financial resources at 30 April 397,949 348,808 Board of Directors Directorships and executive functions Other accounts payable (9,599) - in other companies 19,604 - Ole Steen Andersen, Chairman Danfoss A/S (M), Sauer-Danfoss Inc. (MB), Goodwill 9,977 - Danfoss Murmann Holding A/S (MB), H. Lundbeck A/S (MB) Acquisition price 29,581 - Ida Garre, Deputy Chairman of which cash (2,763) - Henrik Gürtler Novo A/S (M), Novozymes A/S (CB), Consideration in the form of own shares - - Dansk Management Forum (CB), Cash acquisition price 26,818 - Københavns Lufthavne A/S (MB) Niels Christian Nielsen Danske Bank A/S (MB), Grundfos A/S (MB), Otto Mønsted A/S (MB), Oticon-Fonden (MB) contd.

68 69 COWI’s ofﬁ ces abroad

Ofﬁ ces abroad International experience PORTRAIT COWI’S OFFICES

Living with the environment

Engineer Niels Erik von Freiesleben COWI’s ofﬁ ces in Denmark is devoted to sustainability

The environment is an important part of cleans up polluted sites. Since then, he has “It is an exciting project that will show Aalborg Niels Erik von Freiesleben’s life. At work, he worked with environment problems in a new technological possibilities for Danish is part of COWI’s department for Environ- broader sense and is now group leader for commercial life to help solve global environment, Occupational Health and Safety; and environmental management and sustain- mental problems,” says Niels Erik von Viborg privately, he has set up a resident’s sustainable development and is in the process of Freiesleben. Holstebro ability group in his home town, united all the making sustainability a new market area for In COWI he runs an internal network Århus environmental groups in the municipality in COWI. called Environment, Safety and Health, in- Lyngby the idea of employing a Green Guide and is He is the driving force behind COWI’s tended to help project managers include Vejle deputy chairman of a municipal sustain- participation in The Nordic Partnership, in such issues in their planning work. He is al- Esbjerg ability council. which 17 Nordic companies have commit- so involved with the development of COWI’s Kolding He is 46 years old and has been working ted themselves to making a special effort own environmental management system Odense at COWI since 1990, when he left a job as for global sustainable development and now and is currently revising the company’s envi- Svendborg environmental researcher at the Technical devotes much of his working hours to a ronmental policy. University of Denmark to get some dirt un- project for the Ministry of Science, Technol- der his nails at the COWI’s Soil and Ground- ogy and Innovation called Green Technologi- Senior Project Manager Niels Erik von @ Freiesleben, [email protected] water Department, which analyses and cal Foresight.

70 71 COWIfoundation A shares Employees Codan and Danica B shares B shares 1 July 2002 COWI A/S

Board of Directors

Management

Danish offi ces Central Services Lyngby Odense Viborg (Head Offi ce) Svendborg Århus Aalborg Holstebro Kolding Div. Div. Div. Div. Div. Div. Div. Div. Div. Esbjerg Vejle D01 D02 D03 D04 D05 D06 D07 D08 D09 Region North Jutland Offi ces abroad Associated companies Norway in Denmark Region Mid Jutland Uganda DANPORT Vietnam Region South Jutland ORGANISATION The Danish Port ORGANISATION Consultancy Group AS Region Funen (50%) Region Øresund Economics and Management Development Planning and Environment Water Geographical Information and IT Roads and Airports Metro and Tunnel Rail, Marine and Bridges, Foundation Engineering Building and Operation Industry and Energy Wholly and partly owned companies abroad

Wholly owned companies in Denmark COWI Belgium SPRL Ben C. Gerwick, Inc. Brussels, Belgium (100%) Hjellnes COWI AS Kampsax A/S San Francisco, California, Oslo, Norway (70%) (100%) USA (93%) Enviroplan International A/S COMAR Engineers A/S UAB COWI Baltic (100%) (100%) COWI Canada Ltd. Consulting Engineers BaUmCOWI Saint John, Canada (100%) and Planners Bau- und Umweltplanung Studstrup & Østgaard A/S MATCON Buckland & Taylor Ltd. Vilnius, Lithuania (100%) GmbH Consulting Engineers and Consulting Engineers and Berlin, Germany (100%) Vancouver, Canada (100%) Planners Planners A/S (100%) (100%) COWI since 1930 COWIconsult ETC Transport COWI was founded in 1930 by Christian BRUUN & SØRENSEN OC International Ltd. Consultants GmbH Ostenfeld, Dr. Tech. Soc. He was joined COWI-ALMOAYED London, England (100%) Berlin, Germany (80%) GROUP AS Consulting Engineers and GULF W.L.L. (100%) Planners A/S three years later by Wriborg Jønson, MSc Manama, Bahrain (49%) Moscow Representative Offi ce (100%) of COWIconsult International Ltd. COWI Polska Sp. z o.o., (Eng.). In 1935, the Company undertook Moscow, Russia (100%) Warsaw, Poland (100%) its fi rst assignment outside Denmark. From 1946 to 1973, the Company op- COWI Tanzania COWI Hungary Ltd. Consulting Engineers and Beijing YAN-DAN Budapest, Hungary erated as a partnership under the name Heat Energy Planners Ltd. (100%) Chr. Ostenfeld & W. Jønson. In 1973, the Dar es Salaam, Tanzania (100%) Technology Development Co. Ltd. Covitecma S.A. Company became the foundation-owned, Beijing, China (30%) Madrid, Spain (100%) private limited company COWIconsult, Consulting Engineers and Planners AS. COWI Philippines, Inc. This was shortened to COWI Consulting Manila, Philippines (100%) Engineers and Planners in 1995 and to COWI A/S in 2001. COWI is fi nancially independent of any producer, supplier or contractor.

72 73 EXECUTIVE MANAGEMENT AND OTHER DIRECTORS

Tony Carpenter, Managing Director, Bahrain Andrius Koncius, Managing Director, Lithuania Klaus H. Ostenfeld, Managing Director and CEO Henning Therkelsen, Executive Director, International Operations

Sergey L. Stepanischev, Managing Director, Russia Rainer Obst, Managing Director, ETC, Germany Henrik Theilgaard, Managing Director, Tanzania Ib Thorseng, Regional Director, Funen Knud Østergaard Hansen, Executive Director, SUBSIDIARIES AND OFFICES ABROAD - MANAGEMENT Danish Operations

Reinhard Jannicke, Managing Director, Zsuzsanna Lehoczki, Managing Director, Hungary Preben West Jensen, Branch Manager, Uganda Jan M. Kieler, Divisional Director, Torben Søgaard Jensen, Regional Director, BaUmCOWI, Germany Development Planning North Jutland

Paul Erik Bach, President, USA Ivar O. Schjetlein, Managing Director, Norway Jytte Jacobsen, Project Director, Michael D. Gautier, Divisional Director, John Dyrlund, Regional Director, South Jutland Development Planning Geographical Information and IT

Jorge Torrejon, President, Canada Pawel Dabrowa-Kostka, Managing Director, Poland Michael Lorentzen, Managing Director, Belgium Peter Hostrup Rasmussen, Divisional Director, Arne S. Jacobsen, Divisional Director, Roads and Airports Rail, Metro and Tunnel

74 Published by COWI A/S Parallelvej 2, DK-2800 Kongens Lyngby Tlf. +45 4597 2211 Fax. +45 4597 2212 www.cowi.dk

COWI is an independent consulting Phyllis Hjelmdal Larsen, Regional Director, Øresund Peter Terman Petersen, Market Director, company, which delivers state-of- Building and Operation the-art services within the ﬁ elds of engineering, environmental science and economics. COWI has a total of 2800 employees, of which 2000 are based in Denmark. 800 are based in subsidiaries and project of- ﬁ ces around the world. The turnover amounts to DKK 2.1 billion (282.5 EURm).

Editors John Jørgensen (responsible), [email protected] Christina Tækker, [email protected] Susanne Junge, [email protected] Stig P. Christensen, Divisional Director, Keld Sørensen, Financial Director, CFO Jette Kingod Economics and Management Translation Tony Wedgwood Lise Mourier Iben Toft Lauesen Lotte Lykke Pedersen Birgitte Amund Madsen and others

Design & DTP Josina W. Bergsøe Patrick Andresén Jytte Dowell

Niels Aude, Divisional Director, Anton Petersen, Divisional Director, Bridges, Mogens Heering, Divisional Director, Print Building and Operation Marine and Foundation Engineering Water and Environment Quickly Tryk A/S

Print run 10.000

Editorial input ended 10 July 2002

Reproduction Permitted with appropriate source references

ISSN 1600-6186

Lars-Peter Søbye, Regional Director, Mid-Jutland, Anders Odgård, Project Director, Metro and Divisional Director, Industry and Energy

Photographers Tao Lytzen Morten Larsen Stig Stasig Jan Dagø Fokus/Niels Åge Skovbo Peter Barrow Scanpix/Mogens Ladegaard, Linda Henriksen Dissing+Weitling Isabelle Rozenbaum Horst Urbschat & Töchter Scanpix Nordfoto Leif Winther, Project Director, Helge Højkær Larsen, Technical Director, BAM/Chris P. Juhl/Samfoto Water and Environment Geographical Information and IT

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