Højbro Plads 21, Copenhagen K

T A B L E O F C O N T E N T S Glossary of Terms...... 4 Directors’ Report ...... 5 Rights Issue ...... 5 Investments during the Year ...... 5 Objective and Strategy ...... 8 Announcements to the Co p e n h a g en Stoc k Excha n g e in 199 7 ...... 11 Financial Highlights and Key Ratios...... 12 Financial review...... 15 Profit and Loss Account...... 15 Balance Sheet ...... 17 Cash Flow ...... 17 Outlook ...... 18 Allocation of profit ...... 19 Dividend Policy ...... 19 Ownership ...... 19 Annual General Meeting ...... 19 Segmental Information...... 21 Commercial Property...... 21 Residential Property...... 25 Freehold Flats ...... 27 The Company’s Properties ...... 28 Valuation of the Company’s Properties...... 32 Financial Matters ...... 34 Risk Factors...... 35 Other Company Information ...... 37 Signatures ...... 39 Auditors’ Report ...... 40 Directors’ Curriculum Vitae ...... 41 Accounting Policies...... 42 Group Accounts ...... 45 Profit and Loss Account...... 45 Balance Sheet ...... 46 Cash Flow Statement ...... 48 Notes to the Cash Flow Statement...... 49 Notes to the Accounts ...... 50 Parent Company Accounts ...... 57 Profit and Loss Account...... 57 Balance Sheet ...... 58 Notes to the Accounts ...... 60 Front page photo: Højbro Plads 21, Copenhagen K

3 G L O S S A R Y O F T E R M S

Geographical focus Investment in properties within a defined local geographical area. For commercial properties, the concept relates to streets, for residential properties and freehold flats, the concept refers to investment within the boundaries of a given municipality.

Vacancy/letting rate The estimated rent for vacant commercial leases in proportion to total rental income on full occupation, expressed as a percentage. The letting rate is 100 per cent less the vacancy rate.

Market rent The expected rent for leases of a given standard on normal terms.

Commercial properties Properties of which at least 25 per cent is used for office or other commercial purposes (retail, restaurants or similar purposes.

Residential properties Properties of which at least 75 per cent is used for residential purposes.

Freehold flats Flats registered as individual units in the land register.

Current property yield Actual rental income less actual operating costs as a proportion of the average investment in properties, calculated for a financial year.

Operating costs Costs related to the operation of the properties – property tax, insurance, property caretaker services, cleaning services, interior and exterior maintenance, etc.

Net rent Rental income less operating costs.

Normalised figures Figures used e.g. for valuation, and which express annual figures in a normal year and on 100 per cent occupancy.

The Company or EjendomsSelskabet Norden The EjendomsSelskabet Norden Group, i.e. the Parent Com- pany with all its subsidiaries. See note 3 to the Parent Com- pany’s financial statements.

4 D I R E C T O R S ’ R E P O R T

In 1997, EjendomsSelskabet Norden recorded DKK 264 million after deduction of costs of continued growth in its property portfolio as about DKK 12.2 million. well as rising earnings. Moreover, the company The reason for the capital increase was the increased its capital base significantly. desire by the company to maintain an equity Profit after tax increased by 86 per cent to ratio of not less than 40 per cent as well as con- DKK 99,465,000 and total investment in pro- tinued growth in its property portfolio. perties amounted to DKK 3,336,002,000 at the end of 1997, which is a 20 per cent rise on the INVESTMENTS DURING THE YEAR level recorded in the previous year. As a result In 1997, DKK 197 million was invested in seven of the higher earnings, all important key ratios commercial properties in the Copenhagen city describing the company’s performance have centre (Copenhagen K postal district), com- improved, which is considered satisfactory. prising a total floor space of approximately 27,000 sq.m. The properties are all situated within the company’s geographical focus area of Copen- hagen and three of them are neighbouring to properties already owned by the company. Some 50 per cent of the rental space was vacant at the time of acquisition, and the acquisition price of a number of the properties took into account the need for extensive renovation estimated to total approximately DKK 20 million. At the end of 1997, nearly 40 per cent of the premises that were vacant at the time of acquisition had been let, and the remaining premises are expected to be let in the course of In 1997, EjendomsSelskabet Norden made 1998. If fully let, properties acquired will make investments in properties totalling DKK 560 a positive contribution to the company’s ope- million and involving 147,987 sq.m. of floor rating profit after financial items. space. At the end of 1997, the property port- In addition to direct property acquisitions, folio included 727,566 sq.m. of which 25,000 the company acquired a 43 per cent equity in- sq.m. will not be included in the balance sheet terest in A/S Kalkværksgrundene in May 1997. until in 1998. A/S Kalkværksgrundene primarily owns residential properties and unsold residual freehold RIGHTS ISSUE flats, and at the end of 1997 its property port- In February 1997, the company increased its folio totalled approximately 93,000 sq.m. at a share capital by a nominal amount of DKK book value of DKK 282 million, corresponding 119,773,300. Shares were offered by way of a 1:3 to an average book value per square metre of rights issue. The subscription price was fixed at just over DKK 3,000. 230, which was some 25 per cent below the On 15 October 1997, the company made an market price. The proceeds from the offer were offer to the remaining shareholders of A/S

5 H O L M E N

6 Kalkværksgrundene to exchange two shares in area being changed so that the three lots can A/S Kalkværksgrundene for three new shares be used exclusively for commercial purposes. in EjendomsSelskabet Norden. The area, which is the only one of its kind More than 53 per cent of the shareholders in Copenhagen, boasts a distinctive architec- in A/S Kalkværksgrundene took up the offer ture, large open green areas, as well as dock to exchange their shares, and the share capital areas, and the area is naturally suited for acti- of EjendomsSelskabet Norden was increased vities aimed at the general public. The com- by 574,479 new shares and now consists of pany therefore intends to market the area to 5,365,412 shares. The proceeds from the capital businesses engaged in decorative arts and the increase amounted to DKK 170 million after creative trades, in particular, which have a need costs of about DKK 4.2 million had been de- for permanent exhibition premises. ducted. As EjendomsSelskabet Norden held 96.23 per cent of the shares at the expiry of the period allowed for the exchange of shares, it was decided to make a compulsory acquisition of the rest of the outstanding shares. The redemption price was fixed at DKK 470 per share and the compulsory acquisition is expected to be completed by mid-1998. At the end of 1997, the company’s interest in A/S Kalkværksgrundene had increased to 99.42 per cent. The investment in A/S Kalkværksgrundene was made for the purpose of continuing the expansion of the property portfolio in, for instance, prime-location residential properties which require extensive interior renovation. Following the two capital increases in 1997, The company believes that this will allow it to the company’s investment capacity has risen combine the improvement of the interior despite property investments of DKK 560 mil- standard of flats with higher yields. lion. If the equity ratio is maintained at a min- On 14 November 1997, the company con- imum of 40 per cent, there is room for further tracted with the Ministry of Defence to ac- investments in a total amount of DKK 440 mil- quire three lots at Holmen, a former military lion. Hence, the company is well prepared to installation in Copenhagen, more specifically continue its growth strategy in the years to at Frederiksholm, covering a total area of come. 44,000 sq.m, of which some 25,000 sq.m. is Part of the current investment capacity has developed. The aggregate acquisition price of already been earmarked for the renovation of the land, on which there are nine buildings, is the buildings acquired at Holmen. DKK 62 million. To this should be added In addition to the acquisition of the pro- renovation costs in connection with letting, perties at Holmen, the company has conclud- estimated to be in the region of DKK 6,000 per ed a conditional agreement for the acquisition square metre. The acquisition is conditional of two lots at the Dokøen. However, the com- on, among other things, the local plan for the pany has a right to rescind the contract until 30

7 June 1998. When developed, the area is ex- lieves that by having significant size it will be pected to contain residential properties cover- able to influence urban planning overall as well ing a total floor space of 36,000 sq.m. Ejen- as in selected areas. The objective is to achieve domsSelskabet Norden does not intend to act a status as the company that potential lessees as the sole developer of the properties, but the in central Copenhagen turn to, with an en- company will in the period up to mid-1998 suing vacancy rate lower than that of the market in general. A further objective is to always have the financial strength to ensure the necessary flexi- bility and a secure capital position. To achieve this aim, the company will, for instance, seek to maintain its equity ratio at not less than 40 per cent. Having significant size and financial strength is expected to make trading in the company’s shares more liquid. By pursuing a clear and transparent operating and invest- endeavour to find potential co-investors for the ment strategy, ensuring cost-efficient admini- total investment estimated at about DKK 700 stration and financing, the company aims to million. It is the company’s intention to en- make investment in the company’s shares an sure that the buildings are designed in a way attractive alternative to direct investments in that makes the best of the site at Frederiks- real property. holm. The company will seek to generate consistently high real yields on its property invest- OBJECTIVE AND STRATEGY ments by redeveloping properties acquired. Activities in 1997 reflect the company’s strategy The strategy pursued is intended to ensure that of achieving controlled growth by focusing pri- current earnings and value appreciation of the marily on Copenhagen. Since 1991, the compa- company’s properties outperform the general ny’s investments totalling about DKK 2 billion property market in terms of prices. have all been made in the Copenhagen area. The company’s objective is to be realised The principal activity of the company is to through the defined strategy, which aims at invest in, and subsequently operate and man- achieving growth in the field of commercial age, properties. As at 31 December 1997, the and residential properties in Copenhagen. company had 66 employees, of whom 35 were The business of property management of- property caretakers. The company performs fers significant economies of scale, and these only little repair and restoration work itself, and the services related to the day-to-day operations of the properties are provided by ex- ternal suppliers. The company handles operations and management of own properties only. The company endeavours to achieve a size that will make it a leading supplier in the market for commercial and residential leases in selected geographical areas. The company be-

8 tion, coupled with the rent being fixed as cost- determined rent without the addition of significant improvements, i.e., a rent that is very low compared with a market-related rent. The initial yield on an investment in residential property is usually very low, but yields can be steadily increased through property improvements as flats are relet. Unlike investments in other types of property, an investment in residential properties involves almost no risk under current market conditions, and the current yield will increase as property is re- novated in connection with reletting. It should are best achieved through the establishment of be noted in this connection that renovation critical mass within limited geographical areas. today helps to drastically reduce public rede- Hence, the company’s investment philos- velopment subsidies that would otherwise have ophy is concentrated on focusing investments to be provided for flats requiring upgrading at within specific geographical areas. In the case a later point in time. of commercial property, the company concen- By building up a sufficiently large portfolio trates investments within a strictly defined area of residential properties, the company is able in its endeavours both to be able to honour les- to plan current renovation projects in such a sees’ changing demands in terms of price, area way that higher quality can be realised at a and type of lease, and to secure rational plan- given price. ning of operations and maintenance. In this Assuming a nearly constant vacating rate of way, the company will be able to control the a property portfolio, a large portfolio of resi- standard of entire areas. dential leases can be said to have the character- The company expects to continue investing istics of an index-linked bond. Theoretically, in commercial properties through the acquisi- the upper limit for the rent level is the amount tion of fully or partially vacant properties. required in order to pay interest on new Based on reliable calculations of the requisite property, and this is far from the rent payable renovation in connection with subsequent let- for the company’s residential properties, even ting, leases whose standard is up-to-date can be after renovation. offered at a rent that is substantially lower than In all property categories, having a signifi- the rent for similar leases in new property. Due cant size means that the property company is to the nature of Danish leases, considerable able to operate more efficiently. For Ejen- risk attaches to the acquisition of properties domsSelskabet Norden, this means that a with a high letting rate, as early vacation by ex- number of functions can be contracted out on isting lessees may result in massive demands a long-term basis to professional providers of for the renovation of leases when the property the services the company has chosen not to is relet and it is difficult to make allowance for carry out itself. The use of professional service the related expenses when negotiating the providers ensures that individual measures can price of a property. be adjusted specifically to comply with indivi- Investments in residential property prima- dual requirements. rily presupposes an attractive property loca- In future, the commercial property market

9 mercial property leases, the supply of premises should be supplemented with services related to the management of premises. Against this background, the company has initiated a process of analysing concepts and needs in collab- oration with professional providers of relevant services. The company’s shares were unable to match the more than 50 per cent improvement of the will make increasing demands on suppliers of KFX-index of Danish benchmark stocks in leases. This will necessitate a higher level of 1997. However, the shares performed better professional services on the part of suppliers when compared with the CPSE all-share index. and is the result of a stronger focus by busi- Consequently, size, turnover and price in- nesses on their core activities, while they out- creases were clearly related factors in 1997, as source secondary activities. The provision of the most liquid shares accounted for the lar- commercial leases will be changed from “mere- gest price gains. ly making premises available” to include sup- This emphasises the importance of endeav- plementary services adapted to individual ouring to constantly improve liquidity in the customer needs. company’s shares and the fact that the compa- Hence, we believe that in order to maintain ny’s size is an important parameter for ensu- a competitive position in the market for com- ring liquidity in the shares.

Movements in the price of EjendomsSelskabet Norden’s shares relative to the CPSE all-share index (indexed) from 1994 to 1997

10 Announcements to the Copenhagen Stock Exchange in 1997

Date Subject

20 January Announcement of 1996 financial results

10 February Rights issue of 1,197,733 new shares in EjendomsSelskabet Norden A/S

13 March Shares of rights issue fully taken up

17 April Announcement of DKK 6.50 dividend per share

2 May Acquisition of 43 per cent of the shares in A/S Kalkværksgrundene

19 August Announcement of interim financial results

19 September Letter of intent regarding exchange offer to the shareholders of A/S Kalkværksgrundene and announcement of undertaking to exchange 15 per cent of the shares in A/S Kalkværksgrundene; calling of an Extra- ordinary General Meeting

8 October Announcement of undertaking to exchange a further 17 per cent of the shares in A/S Kalkværksgrundene

15 October Offer to exchange shares directed at the shareholders of A/S Kalk- værksgrundene

14 November Conditional agreements to purchase parts of Frederiksholm and Dok- øen

17 November Ownership share of 82.87 per cent in A/S Kalkværksgrundene

21 November End of exchange period – ownership of 96.23 per cent of A/S Kalk- værksgrundene

26 November Announcement of compulsory acquisition of the remaining shares in A/S Kalkværksgrundene

27 November Request that the shares in A/S Kalkværksgrundene be struck off the list

1 December Start of compulsory acquisition period

11 F I N A N C I A L H I G H L I G H T S A N D K E Y R A T I O S

GROUP 1997 1996 1995 1994 1993 DKKm DKKm DKKm DKKm DKKm Profit and loss account Rental income 304.6 246.5 202.1 200.6 181.0 Profit from letting of properties 172.7 147.3 117.3 107.0 91.1 Sales proceeds from freehold flats and properties 31.8 25.7 15.1 2.8 8.4 Profit on properties 204.5 173.0 132.4 109.8 99.5 Administrative expenses incl. depreciation -20.9 -19.3 -17.8 -21.9 -21.3 Profit before financing 183.6 153.7 114.6 87.9 78.2 Financing costs -115.2 -112.0 -88.1 -76.9 -81.1 Profit before market value adjustment of securities and value adjustment of properties 68.4 41.7 26.5 11.0 -2.9 Market value adjustment of securities 1.4 1.8 8.3 -9.7 21.1 Value adjustment of properties *) 35.4 10.1 6.9 -- Profit before taxation and extraordinary items 105.2 53.6 41.7 1.3 18.2 Tax on profit on ordinary activities -5.7 0.0 -0.9 2.8 1.9 Profit on ordinary activities after taxation 99.5 53.6 40.8 4.1 20.1 Extraordinary profit after taxation 0.0 0.0 2.2 0.0 -20.8 Profit for the year 99.5 53.6 43.0 4.1 -0.7

Balance Sheet Assets Properties: Commercial properties 2,250.5 1,920.1 1,681.4 1,246.9 1,188.7 Residential properties 514.4 376.2 289.8 261.0 332.2 Freehold flats 571.1 476.8 502.1 441.9 472.6 Total properties 3,336.0 2,773.1 2,473.3 1,949.8 1,993.5 Other assets 159.9 101.1 82.1 137.1 108.1 Cash at bank and in hand and securities 202.4 82.6 132.2 144.5 145.3 Total assets 3,698.3 2,956.8 2,687.6 2,231.4 2,246.9

Shareholders’ equity and liabilities Shareholders’ equity 1,655.4 1,170.8 1,140.5 992.6 1,008.7 Liabilities and provisions 2,042.9 1,786.0 1,547.1 1,238.8 1,238.2 Total shareholders’ equity and liabilities 3,698.3 2,956.8 2,687.6 2,231.4 2,246.9

*) As from 1995, the Company revalues its properties

12 F I N A N C I A L H I G H L I G H T S A N D K E Y R A T I O S

GROUP 1997 1996 1995 1994 1993

Number of properties Commercial properties 80 67 59 50 46 Residential properties 28 16 10 9 12 Freehold flats 2,407 2,101 2,261 1,823 2,058

Total floor space, square metres Commercial properties 311,596 273,151 245,635 194,768 180,308 Residential properties 211,559 168,622 136,460 133,849 181,903 Freehold flats 179,411 154,328 164,730 134,070 143,690 Total 702,566 596,101 546,825 462,687 505,901

Book value in DKK per sq.m. Commercial properties 7,222 7,029 6,845 6,402 6,592 Residential properties 2,431 2,231 2,123 1,950 1,826 Freehold flats 3,183 3,090 3,048 3,296 3,289 Total 4,748 4,652 4,522 4,215 3,941

Key ratios *) Share capital, DKK ’000 536,541 359,320 359,320 313,120 313,120

Return on equity (%) 7.1 4.6 3.9 0.1 1.8

Equity ratio (%) 44.8 40.0 42.4 44.5 44.9

Earning per share (DKK) 21.7 14.9 13.3 0.4 6.0

Net asset value per share at year-end (DKK) 309 326 317 317 322

Share price at year-end 314 278 210 257 255

Price/net asset value 1.02 0.84 0.66 0.81 0.79

Dividend per share (DKK) 6.5 6.5 6.3 6.0 6.0

Cash flow per share (DKK) 33.4 29.8 22.9 15.5 18.5

Number of employees 66 49 52 61 60

Year-end letting rate, commercial properties 96 96 95 95 93

Current property yield (%) 6.8 6.6 6.0 5.6 5.2

*) The ratios have been calculated in accordance with the Guidelines on the Calculation of Ratios issued by the Danish Association of Fi- nancial Analysts.

13 K R O N P R I N S E N S G A D E 1 4

C O P E N H A G E N K

14 F I N A N C I A L R E V I E W

PROFIT AND LOSS ACCOUNT The sale of freehold flats reduced rental in- Profit before taxation in 1997 came to DKK come by approximately DKK 2.0 million. 105,231,000 as compared with DKK 53,617,000 in The trend in operating costs trac ked the 1996. The profit is better than had been expec- higher level of activity, and the higher perce n - ted at the beginning of the year and is the re- tag e increase is due to a grea t er prop o r tion of sult of a combination of a continuing improve- residential prop e r ties and residual freehold fla t s ment in property administration, the acquisi- in the prop e r ty portf olio, as these trad i t i o n a l l y tion of A/S Kalkværksgrundene and the ex- sp a r k higher costs and lower ren t al income per pansion of the capital base. EjendomsSelskabet squ a r e metr e rel a t i v e to commercial prop e rt i e s . Norden’s share of the profit of A/S Kalk- værksgrundene is included in the financial Pro f it from the sale of freehold flats per squa r e metre statement for 1997. Earnings per share also improved despite an 199 7 199 6 199 5 199 4 199 3 Pro fi t increase in share capital, as EPS rose to DKK in DKK ’000 30 , 7 3 8 25 , 0 2 7 15, 137 5, 3 19 8, 3 9 7 21.7 in 1997 from DKK 14.9 in 1996. Sq. m. sold 10, 7 0 8 10, 4 0 2 10, 9 9 0 9, 6 2 0 8, 6 71 In 1997, profit after taxation amounted to Pro f it in DKK DKK 99,465,000 as compared with DKK per sq.m. 2, 8 71 2, 4 0 6 1,3 77 55 3 96 8 53,617,000 in 1996. Taxation charged to the profit and loss account comprises Ejendoms- The sale of freehold flats and properties has Selskabet Norden’s share of tax in A/S Kalk- picked up both in relative and in absolute værksgrundene. terms. The profit includes a minor book profit

S p e c i fication of re n tal income and pro fit from letting

( D K K m ) 19 97 19 9 6 19 9 5 19 94 19 9 3 Rental income 304.6 246.6 202.1 200.6 181.0 Operating costs -131.9 -99.3 -84.8 -93.6 -89.9 Profit from letting of properties 172.7 147.3 117.3 107.0 91.1 Profit from sale of freehold flats and properties 31.8 25.7 15.1 2.8 8.4

P ro fit on pro p e rt i e s 2 04 . 5 17 3 . 0 13 2 . 4 10 9 . 8 9 9 . 5

Rental income in 1997 increased by approx- from the sale of two properties owned by A/S imately 25 per cent compared with 1996. Half Kalkværksgrundene totalling DKK 1,045,000. of the increase was attributable to the acquisi- The combined improvement of 23 per cent tion of A/S Kalkværksgrundene, whereas the was mainly attributable to A/S Kalkværksgrun- remaining part of the increase was equally at- dene. The profit per square metre increased by tributable to property acquisitions and to or- 19 per cent, which can be ascribed primarily to ganic growth, such as letting, a lower vacancy a continuing improvement in the market for rate and rental and index-linked adjustments, owner-occupied homes in the greater Copen- and the renovation of residential properties. hagen area.

15 Administrative expenses

(DKKm) 1997 1996 1995 1994 1993 Profit on properties 204,5 173,0 132,4 109,8 99,5 Gross administrative expenses incl. depreciation 20,9 19,3 19,2 26,5 26,9 Cost ratio 10,2 11,2 14,5 24,1 27,0

The profit on properties of DKK 204,479,000 The company’s net financing expenses represents a yield on the total average property amounted to DKK 115,158,000, which is on a investment of 6.8 per cent, as compared with level with those recorded in 1996. Seen in the 6.6 per cent in 1996 and reflects the general im- light of the company’s investment activities, provements in operations the company a- the unchanged level is attributable to the share chieved in 1997. offers made in 1997, and to the fact that by re- financing debts in the amount of DKK 100 million, the company was able to reduce interest payments by approximately DKK 3 million. In 199 7, net value adjustments amounted to DKK 35,446,000, compa r ed with DKK 10, 0 94 , 0 0 0 in 1996. Approxi m a t ely 43 per cent of the adjustments are attrib u t able to the compa ny ’ s share of value adjustments of A/S Kal k væ r ksg rundene. The value assessment of the company’s pro- Administrative expenses and depreciation perties was made according to the same prin- amounted to DKK 20,901,000, which is an in- ciples and yield targets as applied in previous crease of 8 per cent compared with 1996. Most years. of the increase was attributable to the compa- Thus, the positive adjustments reflect an ny’s share of the administrative expenses in improved letting situation and ordinary index- A/S Kalkværksgrundene. Despite this increase, linked adjustments for commercial properties the cost ratio still showed a falling trend. as well as residential properties being reno- The management of the properties of A/S vated on reletting. Kalkværksgrundene has been contracted out Tax of DKK 5,766,000 represents the compa- until the end of 1998, at which time it will be ny’s share of taxation provided for in A/S Kalk- taken over by EjendomsSelskabet Norden. værksgrundene and a minor adjustment of de- Consequently, the administrative expenses of ferred taxation relating to current assets. As a A/S Kalkværksgrundene will impact on the result of fiscal depreciation and tax losses car- company’s operations in 1998, whereas they are ried forward, EjendomsSelskabet Norden is expected to be virtually eliminated in 1999. not liable to taxation for 1997.

I n te re st on inte re st - b e a ring debt incl. contributions and wri te - o ff of capital losses

( D K K m ) 19 97 19 9 6 19 9 5 19 94 19 9 3 Net ave ra ge debt 1, 5 6 3 1, 4 04 1, 0 9 9 9 2 8 8 24 Net financing ex p e n s e s 115 . 2 112 . 0 8 8 .1 76 . 9 81.1

I n te re st ra te on debt (%) 7. 4 8 . 0 8 . 0 8 . 3 9 . 8

16 The company does not provide for contin- date. Other properties contracted to be taken gent tax concerning investment properties. over in 1998 are included in the balance sheet The company’s total contingent tax liability is as at 31 December 1997. shown in note 12 to the accounts and amount- Changes in assets other than properties are ed to DKK 46,757,000 as at 31 December 1997. generally attributable to the acquisition of A/S No events have taken place after the ba- Kalkværksgrundene, particularly the increase lance sheet date which influence the evalua- in cash from the sale of two properties owned tion of these accounts. by A/S Kalkværksgrundene for a total of DKK 54 million. Changes in liabilities other than investments made in 1997 reflect the two capital increases.

CASH FLOW 1997 was characterised by a satisfactory trend in the company’s financial position as the cash flow from operating activities increased by 33 per cent and as the group’s liquid resources increased by DKK 103.4 million to a total of DKK BALANCE SHEET 112.9 million due to the two capital increases Total assets as at 31 December 1997 amounted and in spite of the investments made. to DKK 3,698,337,000 compared with DKK In 1997, the operating profit adjusted for de- 2,956,871,000 at end-1996. The increase of 25 per preciation, provisions, taxes paid and value ad- cent is attributable to property investments made in 1997, including the acquisition of A/S Cash fl ows Kalkværksgrundene, which is fully included in (DKK ’000) 19 97 19 9 6 the balance sheet. From operating activities 144 , 2 67 10 8 , 4 8 0 The acquisition of the lots at Frederiks- From inve sting activities - 4 2 9 , 4 8 5 - 3 6 6 , 97 3 holm is not included in the balance sheet as From financing activities 3 8 8 , 6 0 6 2 5 2 , 5 8 3 the conditions for concluding the deal had not been complied with as at the balance sheet Total cash fl ow 10 3 , 3 8 8 - 5 , 910

M ovements in share h o l d e rs’ equ i t y

( D K K m ) 19 97 19 9 6 19 9 5 19 94 19 9 3 S h a re h o l d e rs’ equity at 1 January 1,17 0 . 8 1,14 0 . 5 9 9 2 . 6 1, 0 0 8 . 7 1, 0 34 . 8 Pro f it for the ye a r 9 9 . 5 5 3 . 6 4 3 . 0 4 .1 - 0 . 7 D i v i d e n d s - 34 . 9 - 2 3 . 3 - 2 2 . 6 - 18 . 8 -18 . 8 Net capital incre a s e 4 3 3 . 6 0 . 0 12 8 . 3 0 . 0 0 . 0 A m o rtisation of goodwill - 13 . 6 0 . 0 0 . 0 0 . 0 0 . 0 O ther adjustments *) 0 . 0 0 . 0 - 0 . 8 - 1. 4 - 6 . 6

Sh a re h o l d e r s’ equity at 31 December 1,6 5 5 . 4 1,170 . 8 1,140 . 5 99 2 . 6 1,0 0 8 . 7

*) Other adjustments primarily relate to market value adjustments of securities carried to the profit and loss account

17 justment of properties amounted to DKK 134.8 million as against DKK 107.2 million in 1996, corresponding to an increase of 19.7 per cent, which in all essentials is attributable to an improvement in rental income and sales of freehold flats and properties. Funds tied up in working capital were reduced by DKK 14.1 million due to a combination of better management of debtors and consequently a decrease in funds tied-up, higher deposits and an activity-related increase in trade creditors. As a result of the acquisition of A/S Kalk- level with 1997. The sale of freehold flats is ex- værksgrundene, a tax payment has been made pected to reach a total of approximately 12,000 in the current year. sq.m. with a profit of well over DKK 30 million, and administrative expenses will be on a Cash flo w from operating activities level with 1997. (DKK ’000) 199 7 199 6 The company’s financing costs will increase Pro f it befor e market value as a result of the property investments made, ad j u s tment of securities and including investments in the lots at Frederiks- value adjustment of prop e rt i e s 68 , 4 2 0 41,7 2 0 holm, which properties are expected to be in- Ma r ket value adjustment of cluded in the company’s balance sheet in 1998. se c u r ities, depreciation and pr ovisions 2, 6 10 3, 9 6 6 The company’s tax payments are expected Co s t prices of freehold flats to be limited and are solely related to taxable and prop e r ties sold 63 , 7 2 7 61,4 8 9 income in A/S Kalkværksgrundene. 134, 7 5 7 107,175 In 1998, the company will seek to increase Ch a n g e in wor king capital 14, 140 1,3 0 5 its property portfolio. Investments will contin- Tax paid -4 , 6 3 0 0 ue to focus on properties located in central Total cash flo w from Copenhagen. With regard to commercial pro- op e r ating activities 144, 2 6 7 108 , 4 8 0 perty, vacant properties needing renovation will be preferred. OUTLOOK The demand for properties in prime loca- The positive trend in operations is expected to tions is growing and is partly influenced by the continue in 1998. The performance will be fa- trend in interest rates. Institutional investors vourably influenced by property investments have once more become visible in the market and capital increases made in 1997. Profit be- and the letting situation has generally im- fore market value adjustment of securities and proved, which has led to a low vacancy level. value adjustment of properties is expected to Coupled with a faintly increasing rental level, be in the region of DKK 85 million represent- these factors have helped to attract investors. ing an improvement of 30 per cent compared Consequently, it may prove more difficult with 1997. for the company to maintain the investment The profit is based on a vacancy rate for level of previous years. commercial properties of around 5 per cent In addition to direct acquisition of proper- and renovation of residential properties on a ties, the company will continue to assess the

18 possibility of establishing companies in geo- DIVIDEND POLICY graphical areas outside Copenhagen. In con- The Board proposes that a dividend of DKK cert with other property owners, the company 6.50 per share be paid to shareholders. The pro- could establish a company with a separate or- posed dividend is unchanged from 1996, but ganisation that would focus on major Danish due to the rights issue in February 1997 at provincial towns and cities. DKK 230 per share and the offer for an ex- In addition, the company is looking into change of shares made to shareholders of A/S the possibilities of acquiring major property Kalkværksgrundene in November 1997, the portfolios in the Swedish part of the Øresund share capital, and hence dividends, has in- region. It will still be a condition that the port- creased considerably. It is the company’s divi- folio has a volume large enough to cover ad- dend policy, given an equity ratio of at least 40 ministrative expenses locally. per cent, to pay dividends of at least 50 per cent of the profit before market value adjust- ALLOCATION OF PROFIT ment of securities and value adjustment of The Board of Directors will propose to the properties, but after taxation. Proposed divi- company’s Annual General Meeting that the dends for the 1997 financial year constitute 55.6 profit for the year of DKK 99,465,000 be allo- per cent of the profit before market value ad- cated as follows: justment of securities and value adjustment of properties, less allocated tax, which is on a le-

Allocation of pro fi t vel with 1996.

(DKK ’000) 19 97 19 9 6 OWNERSHIP D i v i d e n d s 34 , 875 2 3 , 3 5 6 A/S Forsikringsselskabet Codan, The Danish Re valuation re s e rve , Lawyers’ and Economists’ Pension Fund and p ro p e rt i e s 11, 7 8 8 19 ,13 3 The Employees’ Capital Pension Fund have all Retained pro fi t 5 2 , 8 0 2 11,12 8 reported that they hold more than 5 per cent Pro f it for ye a r 9 9 , 4 6 5 5 3 , 617 of the company’s share capital.

The Annual General Meeting will be held on Tuesday 14 April 1998 at 4:00 p.m. at Nykredit Bank Bredgade 40, 1260 Copenhagen K

19 B R E D G A D E 3 2

C O P E N H A G E N K

20 S E G M E N T A L I N F O R M A T I O N

COM M E R CIAL PROP E R TY vacancy rat e was less than 6 per cent. If adjusted Activities within this area increased thro u g h o u t for prop e r ties that will not be tak en over until 199 7. At the end of 199 7, the portf olio compri s e d 1998, the vacancy rat e is reduced to 4 per cent. 80 prop e r ties totalling 311,596 sq.m. with a total One large lease to be let in 199 7 was the prop - book value of DKK 2,250,542,000. The commer- er ty compr ising 3,500 sq.m located at Bred ga d e cial prop e r ty portf olio rep r esents 44 per cent of 30 in central Copenhagen. This prop e r ty served the total portf olio in ter ms of floor space and as the compa ny ’ s head office and we have since 67 per cent of the book value. mo ved to premises in the prop e r ty at Tol d b o d - In 199 7, the compa n y acqui r ed 13 prop e rt i e s gade 53-55, whose back building prev i o u s l y co mp r ising 38,442 sq.m. The total acqui s i t i o n housed a printing office and stora g e facilities. It pr ice amounted to DKK 255,449,000 corre- has now been fit t ed up for office purpo s e s . sponding to DKK 6,645 per squa r e metr e. In 1997, the company concluded 105 leases The letting situation developed favou r ably in comprising 37,140 sq.m. with a total annual ren- 199 7. Large leases wer e in great demand and the tal income of DKK 24 million. In the same pe- vacancy rat e for commercial prop e r ties was riod notice was given in respect of 136 leases ma i n t ained at a low level, despite the acqui s i t i o n comprising 36,315 sq.m. with an annual rental of vacant prop e r ties. At the end of the yea r , the income of about DKK 18 million. Net rental

Commercial property acquired in 1997

Official Floor valuation space 1 Januar 1997 Address (sq.m.) (DKK ’000) Use Bredgade 32 1260 Copenhagen K 4,825 37,000 Retail, office Frederiksborggade 4-6 1360 Copenhagen K 3,353 18,300 Retail, residential Højbro Plads 21 1200 Copenhagen K 3,805 23,660 Retail, office, residential Kronprinsensgade 14 1114 Copenhagen K 826 3,450 Retail, office, residential Købmagergade 57 1150 Copenhagen K 1,281 7,200 Retail, residential Landgreven 3 1264 Copenhagen K 4,434 28,000 Retail, office, residential Palægade 6-8 1261 Copenhagen K 6,191 42,000 Retail, office, residential Peder Hvitfeldts Stræde 6 1173 Copenhagen K 765 1,500 Office, residential St. Kongensgade 59 1264 Copenhagen K 5,278 24,800 Retail, office Sct. Annæ Plads 24 1253 Copenhagen K 1,655 19,803 Office, residential Total Copenhagen 32,413 205,713

Hellerupvej 66 2900 Hellerup 570 3,650 Office, residential Strandvejen 149 2900 Hellerup 3,853 13,500 Retail, residential Total Copenhagen periphery 4,423 17,150

Østergade 27 7600 Struer 1,606 8,350 Retail, office Outside Copenhagen 1,606 8,350 Total commercial properties 38,442 231,213

Properties located outside of Copenhagen K postal district were acquired as part of A/S Kalkværksgrundene

21 income of DKK 6 million will be reflected fully 27 at 31 December 1997 compared with 23 at in the accounts for 1998. In three instances in the end of 1996. 1997, the company benefited from the concen- Total rents rec e i v able from these lessees trated property portfolio as the expansion amount to DKK 83 million corresponding to 40 needs of existing lessees were met by breaking per cent of total commercial ren t al income. The down walls to neighbouring properties. The re- avera g e rent was DKK 860 per squa r e metre . latively high rate of turnover characterising the De s p i t e the fact that 7 leases have been concluded letting of property for commercial purposes il- wi t hin the last 3 yea r s, the 27 lessees have held lustrates the importance of retaining lessees their leases for 7.5 yea r s on avera g e. The avera g e re- and being able to offer them alternative leases qui r ed ter mination notice is just under 3 yea rs . within the company’s property portfolio if In 1997, the company invested a total of their needs change. DKK 61,1 million in commercial property improvements. The investments cover improve- Highlights for commercial property ments of leases in connection with reletting,

(DKK ’000) improvements in connection with the renova- Rental income incl. estimated tion of properties acquired and finally renova- rental value of vacant space 201,477 tion of flats in commercial properties in con- Operating expenses -38,784 nection with reletting. Net rent 162,693 The growth in financial activities in Copen- hagen has had a positive effect on the letting Book value at 31 December 1997 2,250,542 situation. According to a Newsletter of 6 No- Sq.m. at 31 December 1997 311,596 vember 1997 issued by the Spatial Planning Percentage yield 7.23 The above figures should not be directly compared with the Department of the Ministry of Environment figures in the financial statements. The figures for income and and Energy, the estimated average vacancy rate operating costs have been normalised and properties owned by A/S Kalkværksgrundene are included at full value. in the Copenhagen area constitutes about 4 per cent as compared with 9 per cent in May Th e r e was a satisfac to r y development in the 1995. In 1997 alone, the estimated decrease in vacancy rat e of the commercial prop e r ty port- vacant premises was about 20 per cent. If the folio in 199 7. increase in the demand for premises contin- ues, this will have a positive impact on letting Vacancy ra te of commercial pro p e rt y activities and will step up new building starts. However, the company believes that the market is still far from the situation of the mid-80s when the market overheated and new building starts went ahead without regard to pre-let rates. This later resulted in a marked increase in vacancies. In late-1997, the Minister of Housing tabled a proposal to amend the act on commercial leases with effect from 1 January 1999. The amendment is intended to provide a more bal- *) Excluding vacancy rates of properties to be taken over in 1998 anced contractual basis for lessees and lessors. The number of commercial lessees with an The effect of the amendment could improve annual rent of more than DKK 1 million was lessors’ means of terminating existing leases

22 C O M M E R C I A L P R O P E R T I E S A C Q U I R E D I N 1 9 9 7

BR E D G A D E 3 2 FR E D E R I K S B O R G G A D E 4 - 6 H Ø J B R O P L A D S 2 1 CO P E N H A G E N K C O P E N H A G E N K C O P E N H A G E N K

KR O N P R I N S E N S G A D E 1 4 KØ B M A G E R G A D E 5 7 P A L Æ G A D E 6 - 8 C O P E N H A G E N K CO P E N H A G E N K CO P E N H A G E N K

P E D E R H V I T F E L D T S ST R Æ D E 6 S T. KO N G E N S G A D E 5 9 SC T . A N N Æ PL A D S 2 4 CO P E N H A G E N K CO P E N H A G E N K CO P E N H A G E N K

H E L L E R U P V E J 6 6 ST R A N D V E J E N 1 4 9 ØS T E R G A D E 2 7 HE L L E R U P H E L L E R U P S T R U E R

23 C O M M E R C I A L P R O P E R T I E S A C Q U I R E D I N 1 9 9 7

L A N D G R E V E N 3

C O P E N H A G E N K

24 and thus help to bring about a longer required resenting a total floor space of 9,100 sq.m. and a termination notice. total inves tment of DKK 8.5 million. The market for residential prop e r ties is in- RESIDENTIAL PROP E R TY cre a s i n g ly making allowance for the possibility At 31 December 199 7, the compa n y owned 28 re- of gen e r ating higher yields by way of prop e rt y sidential prop e r ties totalling 211,559 sq.m. dis- ren o vation, which has led to a low initial yield tri b u t ed on 2,300 leases with a total book val u e on residential prop e r ty inves tments, often as of DKK 514,368,000. This prop e r ty categ o r y rep - lo w as 3 or 4 per cent. The reason is that the resents 30 per cent of the portfo l i o ’s floor space rent in the exi s ting old housing stoc k typically and 16 per cent of the book value. co n st i t u t es a thi r d of the new-building rent at All of the prop e r ties acqui r ed in 199 7 are re- the most. Conseque n t l y , it is possible both to la t ed to the compa ny ’ s acquisition of A/S Kal k - ob t ain a positive yield on ren o vation and to vær ksg rundene. In addition to the prop e rt i e s keep rent at a compet i t i v e level compa r ed with li s ted below, EjendomsSelskab e t Nor den had the rent payable for leases in newly built prop - ag reed to acqui r e the prop e r ty located at er ties. Ma l m ø g ade 11, DK-2 100 Copenhagen Ø. How- Agai n s t the background of about a 7 per eve r , that prop e r ty was tak en over by a housing cent vacating rat e, it is possible to plan ren o va- so c i et y . tion projects with a view to obtaining higher The prop e r ties acqui r ed are cha ra c te r ised by pr ices. Given the current flo w of vac a t ed fla t s lo w rent and inter ior conditions that are not up wh i c h are ren o vat ed befor e being rel e t, the yield to tod ay ’ s stan d a r ds. Conseque n t l y , Ejendoms- on a residential prop e r ty portf olio is almost Se l s ka b e t Nor den will consistently ren o vat e co mp a r able to that of a high-coupon index- these prop e r ties in connection with rel et t i n g , li n k ed bond. aga i n s t a corresponding increase of the rent. At a vacating rat e of 7 per cent per annum In 199 7, the compa n y ren o vat ed 118 flats rep - and ren o vation costs of DKK 1,500 per squa r e

Residential pro p e rties acqu i red in 19 97

O f fi c i a l valuation Floor space 1 Januar 19 97 Ad d re s s ( s q . m . ) (DKK ’000) M j ø s e n s gade 1-11 2300 Copenhagen S 4 , 2 8 2 10 , 8 0 0 Å rh u s gade 97 2100 Copenhagen Ø 9 , 377 21, 7 0 0 D r. Ab i l d gå rds Alle 14 2000 Fre d e ri ks b e rg 1, 0 54 2 , 5 5 0 N y vej 8A- B / 10 A- B 18 51 Fre d e ri ks b e rg C 5 , 9 5 6 12 ,10 0 H yl d e gå rd s vej 40-40A/40B 2920 Charl ot te n l u n d 1, 4 0 3 3 , 0 5 0 Ko rs gå rd s vej 26-28 2920 Charl ot te n l u n d 1, 512 3 , 3 0 0 S m a k ke gå rd s vej 13 3 - 14 9 2820 Gento f te 4 , 6 0 3 13 , 5 5 0 J æ ge rs b o rg vej 68-76 2800 Ly n g by 3 , 4 37 13 , 2 0 0 D a l st rø get 14 0 - 14 6 2860 Søborg 2 , 4 5 2 7, 6 0 0 Ro s k i l d e vej 18 5 A- B 2500 Va l by 3 , 8 21 11, 6 0 0 H i m m e rl a n d s vej 2 2720 Va n l ø s e 2 , 241 5 , 34 0 B re d e gade 21 4200 Slage l s e 2 , 7 9 9 7, 0 0 0

Total residential pro p e rt i e s 4 2 , 9 37 111, 7 9 0

25 R E S I D E N T I A L P R O P E R T I E S A C Q U I R E D I N 1 9 9 7

MJ Ø S E N S G A D E 1 - 1 1 ÅR H U S G A D E 9 7 DR . A B I L D G Å R D S A L L É 1 4 C O P E N H A G E N S CO P E N H A G E N Ø FR E D E R I K S B E R G

NY V E J 8 A - B / 1 0 A - B HY L D E G Å R D S V E J 4 0 - 4 0 A / 4 0 B KO R S G Å R D S V E J 2 6 - 2 8 FR E D E R I K S B E R G C CH A R L O T T E N L U N D C H A R L O T T E N L U N D

SM A K K E G Å R D S V E J 1 3 3 - 1 4 9 J Æ G E R S B O R G V E J 6 8 - 7 6 D A L S T R Ø G E T 1 4 0 - 1 4 6 G E N T O F T E LY N G B Y SØ B O R G

RO S K I L D E V E J 1 8 5 A - B H I M M E R L A N D S V E J 2 BR E D E G A D E 2 1 VA L B Y VA N L Ø S E S L A G E L S E

26 met r e, the compa n y esti m a t es that the curren t per cent of the portf olio at the beginning of the yield on EjendomsSelskab e t Nord e n ’s res i d e n - yea r . The compa n y expects the number of fla t s tial prop e r ty portf olio will increase by more vac a t ed for sale to be constant or increasing, so than 5 perce n ta g e points over a time span of 15 that the vacating rat e in ter ms of the number of yea rs . flats sold, as a perce n ta g e of the portf olio at the Avera g e rent in the compa ny ’ s res i d e n t i a l beginning of the yea r , will be on the increa s e . pro p e r ty portf olio at 31 December 199 7 was The reason is that the leases are 25 yea r s or old- DKK 393 per squa r e metr e. It is esti m a t ed tha t er on avera g e and that the flats are not rel e t a higher stan d a r d achi e v ed thr ough ren o vat i o n when notice is given . will increase rent by at least DKK 200-300 per The compa n y expects to acqui r e only a lim- squ a r e metr e. For the total portf olio, this ren t it ed number of residual freehold flats, as the in c r ease will rep r esent DKK 40-60 million on an ma r ket for these types of prop e r ty is limited annual basis, which is exp e c t ed to be obtai n e d due to current sales and because the possibility over the next 15 yea r s. of parcelling out old residential prop e r ties into smaller units ceased to exi s t in the early 1970 s . Highlights for residential pro p e rt i e s If the present vacating rat e is maintai n e d ,

(DKK ’000) the portf olio of freehold flats will have been Re n tal income 8 3 , 0 5 8 sold in about 16 yea r s. The current proceeds will O p e rating cost s - 4 9 , 37 9 be applied on inves tment in commercial and re- Net re n t 33 , 67 9 sidential prop e r ties, the other categ o r ies held Book value at 31 December 19 97 514 , 3 6 8 by the compa n y. Sq.m. at 31 December 19 97 211, 5 5 9 Pe rc e n ta ge yield 6 . 5 5 Highlights for freehold fl a t s

The above figures should not be directly compared with the (DKK ’000) figures in the financial statements. The figures for income and operating costs have been normalised and properties owned Re n tal income 67,112 by A/S Kalkværksgrundene are included at full value. Vacancy re n t - 1, 510 O p e rating cost s - 4 0 , 211 Net re n t 2 5 , 3 91 FREEHOLD FLATS As at 31 December 199 7, EjendomsSelskab e t P ro fit on flats sold in 19 97 3 5 , 57 0 Nor den owned 2,407 rel e t freehold flats in 272 P ro fi t 6 0 , 9 61 pro p e rt i e s . Book value at 31 December 19 97 571, 0 9 2 The portf olio of freehold flats increa s e d Sq.m. at 31 December 19 97 17 9 , 411 co n s i d e r ably with the compa ny ’ s acquisition of Pe rc e n ta ge yield 10 . 7 A/S Kal k væ r ksg rundene. The above figures should not be directly compared with the The portf olio mainly consists of prop e rt i e s figures in the financial statements. The figures for income and operating costs have been normalised and properties owned in perip h e r al Copenhagen. These prop e r ties are by A/S Kalkværksgrundene are included at full value. ma n a g ed by their res p e c t i v e own e r s’ associations and the compa n y thus exer ts its influ e n c e on the management of the prop e r ties thro u g h these own e r s’ associations. The compa n y consistently sells the flats of the freehold portf olio as the y are vac a t ed. In 199 7, 183 freehold flats wer e sold, rep r esenting 7

27 T H E C O M P A N Y ’ S P R O P E R T I E S

Official Floor Acquisition valuation Year of space price 1 Jan. 1997 construction (sq.m.) Type (DKK ’000) (DKK ’000)

COMMERCIAL PROPERTIES Amaliegade 3 - 5 Copenhagen K 1960 10,287 O 224,045 118,000 Amaliegade 14 Copenhagen K 1753 2,200 O 29,113 21,200 Amaliegade 21 A Copenhagen K 1751 1,305 O/R 23,444 11,600 Amaliegade 22 Copenhagen K 1750 3,148 O/R 32,464 26,000 Amaliegade 24 Copenhagen K 1896 2,375 O/R 16,404 13,000 Bredgade 19 Copenhagen K 1860 2,469 M/O 13,536 12,300 Bredgade 20 Copenhagen K 1899 3,092 M/O 34,297 22,100 Bredgade 21 Copenhagen K 1782 2,046 M/O 26,823 17,500 Bredgade 22 Copenhagen K 1806 187 M/O 2,003 1,180 Bredgade 23 Copenhagen K 1896 3,116 M/O 22,019 22,700 Bredgade 30 Copenhagen K 1752 3,503 O 33,852 25,000 Bredgade 32 Copenhagen K 1897 4,825 O/M 42,717 37,000 Bredgade 34 Copenhagen K 1754 4,937 O 39,531 47,500 Bredgade 35 Copenhagen K 1796 2,149 M/O/R 15,464 18,050 Bredgade 63 Copenhagen K 1886 5,194 M/O/R 32,272 28,770 Bredgade 65 Copenhagen K 1881 4,490 M/O/R 43,180 19,700 Chr. IX’s Gade 1 Copenhagen K 1907 2,602 M/O/R 14,873 10,400 Frederiksborggade 4-6 Copenhagen K 1890 3,353 O/M 5,206 18,300 Frederiksborggade 22 Copenhagen K 1879 4,253 M/O/R 27,236 20,200 Hauser Plads 28 - 32 Copenhagen K 1813 7,140 M/O/R 33,926 38,000 Højbro Plads 1 Copenhagen K 1898 2,966 M/O 102,491 96,000 Højbro Plads 21 Copenhagen K 1799 3,805 M/O/R 26,931 23,660 Kompagnistræde 14 Copenhagen K 1795 745 M/O 5,435 5,700 Kronprinsensgade 11 - 13 Copenhagen K 1782 3,580 M/R 24,833 22,810 Kronprinsensgade 12 Copenhagen K 1795 608 M/R 3,348 3,000 Kronprinsensgade 14 Copenhagen K 1860 826 M/O/R 5,635 3,450 Krystalgade 15 - 21 Copenhagen K 1905 9,668 L 111,879 102,000 Købmagergade 19 Copenhagen K 1890 4,253 M/O 33,481 31,500 Købmagergade 57 Copenhagen K 1818 1,281 M/R 11,250 7,200 Landemærket 11 - 17 Copenhagen K 1939 7,435 M/O 74,846 53,000 Landgreven 3 Copenhagen K 1851 4,434 M/O/R 35,630 28,000 Ny Adelgade 3 Copenhagen K 1874 1,606 M/R 8,561 9,800 Ny Adelgade 4 Copenhagen K 1802 1,200 M/O 8,448 7,850 Ny Østergade 10 Copenhagen K 1883 1,592 M/O 11,621 13,920 Palægade 2 - 4 Copenhagen K 1900 5,688 O/R 28,029 34,000 Palægade 6 - 8 Copenhagen K 1901 6,191 M/O/R 46,068 42,000 Peder Hvitfeldts Stræde 6 Copenhagen K 1813 765 O/R 1,350 1,500 Sct. Annæ Plads 6 Copenhagen K 1763 485 O 6,597 6,400 Sct. Annæ Plads 24 Copenhagen K 1895 1,655 O/R 7,294 19,803 Skindergade 45 - 47 Copenhagen K 1800 3,684 M/O 27,373 26,000 Store Kongensgade 59 Copenhagen K 1782 5,278 O/M 31,408 24,800 Store Kongensgade 110 Copenhagen K 1804 5,773 O/R 34,119 18,495 Sølvgade 10 Copenhagen K 1898 7,960 M/O 25,686 40,500 Toldbodgade 53-55 Copenhagen K 1894 5,831 O/R 40,618 21,300 Østergade 11 Copenhagen K 1765 440 M/O 12,435 12,800 Tagensvej Center Copenhagen N 1975 1,008 M 3,191 4,050 Ørnevej 16 - 18 Copenhagen N 1975 3,998 O 32,774 18,700 Sjællandsbroen 2 - 6 Copenhagen SV 1966 16,411 O 112,669 65,500 Gl. Kongevej 1 Copenhagen V 1903 7,692 M/O/R 37,690 38,500 Rådhuspladsen 55 Copenhagen V 1890 2,186 M/O 47,277 41,000

28 T H E C O M P A N Y ’ S P R O P E R T I E S

Official Floor Acquisition valuation Year of space price 1 Jan. 1997 construction (sq.m.) Type (DKK ’000) (DKK ’000)

Falkoner Allé 17 Frederiksberg C 1887 892 M/R 5,042 3,150 Falkoner Allé 26 Frederiksberg C 1899 413 M 2,730 1,710 Peter Bangsvej 24 - 28 Frederiksberg C 1920/1987 10,313 O/LI 64,896 59,000 Total Copenhagen 203,333 1.744,040 1,415,598

Albertshus Albertslund 1970 1,126 M 7,388 6,962 Roholmsvej 6 Albertslund 1983 2,447 LI 17,356 13,700 Vallensbækvej 47 Albertslund 1975 4,928 LI 22,731 17,500 Bagsværd Center Bagsværd 1969 372 M 1,470 1,420 Krogshøjvej 47 Bagsværd 1958 925 N 9,170 6,650 Baunegårdsvej 73 Gentofte 1953 2,893 O 34,622 26,000 Kollegievej 6 Gentofte 1884 7,557 O 76,113 27,000 Hellerupvej 66 Hellerup 1913 570 O/M 7,240 3,650 Strandvejen 149 Hellerup 1897 3,853 M/R 13,520 13,500 Holte Stationsvej 14 Holte 1971 2,113 M/O 35,641 24,500 Rødager Allé 63 Rødovre 1960 823 M 2,552 2,400 Tørringvej 12 Rødovre 1959 777 O 2,920 1,800 Bygstubben 2 Søllerød 1965 1,763 O 10,544 4,600 Bygstubben 4 Søllerød 1986 1,250 O 9,533 7,250 Total Copenhagen periphery 31,397 250,800 156,932

Teknikervej 1 - 3 Fredericia 1988 2,583 O 15,945 7,600 Vestergade 4 Maribo 1962 1,068 M 4,922 4,050 Jernbanegade 24 - 28 Odense 1890 2,992 O/R 19,561 8,350 Kanalvej 150 - 154 Odense 1958 23,746 TS/O 81,099 64,141 Torvegade 1 Odense 1961 3,606 M/O 12,314 25,000 Vestergade 30 Odense 1880 1,156 M/R 24,916 7,200 Hadsundvej 164 Randers 1957 19,691 LI 31,492 27,000 Østergade 27 Struer 1977 1,609 O/M 4,838 8,350 Østergade 4 Sønderborg 1977 7,071 M/O 50,435 47,500 Østerågade 6 Ålborg 1911 2,636 M/O 14,363 12,900 Ryhavevej 7 Århus 1971 2,376 O 25,861 14,700 Søndergade 3 Århus 1899 700 M 22,070 15,000 Søndergade 53 Århus 1920 7,632 M/O 67,858 59,385 Outside Copenhagen 76,866 375,674 301,176

Total acquisition price of commercial properties 2,370,514 1,873,706

Total revaluation of commercial properties to market value -119,972

Total book value of commercial properties at 31 December 1997 311,596 2,250,542 1,873,706

Symbols: O = Office, R = Residential, TS = Technical school, LI = Light industry, N = Nursery School, L = Library, M = Misc. commercial

29 T H E C O M P A N Y ’ S P R O P E R T I E S

Official Floor Acquisition valuation Year of space price 1 Jan. 1997 construction (sq.m.) Type (DKK ’000) (DKK ’000)

RESIDENTIAL PROPERTIES Bergthorasgade 1 - 11 Copenhagen S 1912 16,122 R 29,772 42,350 Egilsgade 1 - 17 Copenhagen S 1909 21,508 R 35,786 55,900 Egilsgade 22-44 Copenhagen S 1908 20,035 R 21,622 55,900 Egilsgade 46 - 62 Copenhagen S 1912 21,711 R 19,439 52,900 Egilsgade 51 - 57 Copenhagen S 1906 8,661 R 6,031 22,250 Halfdansgade 7 - 13 Copenhagen S 1916 11,003 R 6,776 24,700 Mjøsensgade 1 - 11 Copenhagen S 1934 4,282 R 2,834 10,800 Njalsgade 33 - 71 Copenhagen S 1914 22,711 R 33,702 57,500 Njalsgade 38 - 50 Copenhagen S 1911 9,673 R 9,912 26,300 Classensgade 48 Copenhagen Ø 1894 1,415 R 4,100 2,950 Jagtvej 200 Copenhagen Ø 1920 20,208 R 36,645 32,000 Livjægergade 23 Copenhagen Ø 1903 2,423 R 6,142 6,200 Ndr. Frihavnsgade 83 Copenhagen Ø 1900 1,616 R 5,632 5,350 Østbanegade 9 Copenhagen Ø 1906 2,613 R 5,371 6,150 Århusgade 97 Copenhagen Ø 1903 9,377 R 10,583 21,700 Dr. Abildgårds Allé 14 Frederiksberg 1813 1,054 R 2,293 2,550 Nyvej 8A-B/10A-B Frederiksberg C 1908 5,956 R 4,903 12,100 Gl. Kongevej 82 Frederiksberg C 1875 5,875 R 15,468 14,400 Rosenørns Alle 41 Frederiksberg C 1898 1,286 R 4,912 3,650 Total Copenhagen 187,529 261,923 455,650

Hyldegårdsvej 40-40A/40B Charlottenlund 1935 1,403 R 2,267 3,050 Korsgårdsvej 26-28 Charlottenlund 1932 1,512 R 1,979 3,300 Smakkegårdsvej 133-149 Gentofte 1947 4,603 R 5,168 13,550 Hvidovrevej 279 Hvidovre 1937 1,762 R 6,638 5,450 Jægersborgvej 68-76 Lyngby 1959 3,437 R 3,405 13,200 Dalstrøget 140-146 Søborg 1955 2,452 R 2,319 7,600 Roskildevej 185A-B Valby 1930 3,821 R 8,758 11,600 Himmerlandsvej 2 Vanløse 1925 2,241 R 1,871 5,340 Total Copenhagen periphery 21,231 32,405 63,090

Bredegade 21 Slagelse 1938 2,799 R 4,588 7,000 Outside Copenhagen 2,799 4,588 7,000

Total acquisition price of residential properties 298,916 525,740

Total revaluation of residential properties to market value 215,452

Total book value of residential properties 31 December 1997 211,559 514,368 525,740

Symbols: R = Residential

30 T H E C O M P A N Y ’ S P R O P E R T I E S

Official Floor Acquisition valuation Number of space price 1 Jan. 1997 freehold flats (sq.m.) (DKK ’000) (DKK ’000)

FREEHOLD FLATS District Copenhagen area 1,627 118,219 Outer periphery of Copenhagen 254 16,893 Other areas of Zealand 197 14,290 Funen 2 144

Total acquisition price of freehold flats 2,080 149,546

Commercial freehold flats 327 29.865

Total book value of freehold flats at 31 December 1997 2,407 179,411 571,092 591,509

Total property portfolio 702,566 3,336,002 2,990,955

31 V A L U A T I O N O F T H E C O M P A N Y ’ S P R O P E R T I E S

The company’s properties are carried at con- servatively estimated market values. The market value is calculated on the basis of the expected rental income in 1998 at a letting rate of 100 per cent less the related operating costs in a normal year, which amount is subsequently capitalised at a yield target fixed for individual properties. Deposits are then added to the capitalised value, and any estimated rental value of vacant space in the expected vacancy period is deducted together with the cost of any major improvements of a non-recurring na- book value at end-1997, the assessed values ture. exceed the year-end book value by a small The result of the valuation appears from amount. the table, below. As appears from the table, the group’s

Floor Book value Book val u e Value per sp a c e be fo r e Write - Write - net of sq.m. net of sq . m . reval u a t i o n up dow n reval u a t i o n reval u a t i o n (DKK ’000) (DKK ’000) (DKK ’000) (DKK ’000) (D K K )

Commercial properties 311,596 2,232,634 10,781 -7,127 2,250,542 7,223 Residential properties 211,559 496,954 23,665 6,251 514,368 2,431 Freehold flats 179,411 570,968 124 0 571,092 3,183

Total 702,566 3,300,556 34,570 -876 3,336,002 4,748

Approximately 80 per cent of the commer- properties were revalued by a net amount of cial and residential properties in A/S Kalk- DKK 35,446,000 in 1997. værksgrundene were assessed by an estate The revaluations of DKK 17,908,000 that re- agent at the end of 1997. Compared with the late to the commercial properties are partly attributable to vacant premises being let, for which reason the relevant provisions for estimated rental value of vacant space do not apply, and partly to the reletting of property at a higher rent and to the effect on operations of ordinary index-linked adjustments. The valua- tions are also influenced by a small number of rent increases in accordance with the value of the leased property. The average yield target for the company’s properties situated in the Copenhagen city

32 centre is 7.0 per cent, for properties located in the greater Copenhagen area, 7.3 per cent, and for properties outside Copenhagen, 7.9 per cent. The commercial properties are valued within the 6.5-10 per cent yield range. Proper- ties valued on the basis of a yield target of 6.5 per cent are either properties that may be characterised as select property, or commercial property with a high residential rate. Revaluation related to residential properties, in the amount of DKK 17,414,000, is largely attributable to renovation carried out in con- The company believes that in the current nection with reletting the property. market, the market value of the portfolio of Residential properties are valued on the ba- freehold flats exceeds book value. Assuming sis of a yield target in the 6 to 7 per cent range. that all let freehold flats are sold over the next The average yield for residential properties can 14 years and applying a discounting factor of 8 be calculated at 6.55 per cent. per cent, the discounted cash flow based on The company’s portfolio of let freehold current market prices yields a net present value flats is not revalued. The proceeds from the that exceeds book value by approximately DKK sale of vacant freehold flats are recognised in 240 million, or about 40 per cent. It should be the year of sale. In 1997, the company’s port- noticed, however, that this assessment method folio of freehold flats generated an average is extremely sensitive to the assumptions cho- yield relative to the book value at the begin- sen, and that allowance has not been made for ning of the year of 10.7 per cent. taxes.

33 F I N A N C I A L M A T T E R S

It is the objective of EjendomsSelskabet Nor- den to continuously minimise its interest rate risks by way of long-term financing at fixed interest rates. The company obtains financing in Danish kroner exclusively and, consequently, is not exposed to currency fluctuations. A very large part of the company’s debt consists of callable mortgage loans. It is thus possible to refinance the debt whenever movements in interest rates makes it feasible to do so. The company’s debt structure is as follows:

Loan portf olio by maturit y mortgaged, for which reason the company has initiated a mortgaging process, which is expec- In te re st - In te re st - Yea r s to be a r ing debt be a r ing debt ted to provide it with some DKK 100 million ma t u ri t y (DKK ’000) (% ) worth of cash. As at 31 December 1997 the company’s in- 0- 5 53 7,5 9 1 30 . 1 terest reset loans were reset for another five- 5- 1 0 404 , 8 8 6 22 . 7 year period. The interest reset is expected to re- 10- 1 5 25 0 , 7 0 7 14. 0 duce the company’s interest burden by 15- 2 0 424 , 8 8 3 23 . 8 approximately DKK 2 million in 1998. 20 - 2 5 137,0 3 4 7.7 Moreover, at the end of 1997 the company 25 - 3 0 30 , 8 8 6 1.7 extended the fixed interest period for bank 1,7 8 5 , 9 8 7 100 . 0 loans of DKK 150 million, whose fixed interest period expires at the end of 1998 and at the be- As appears from the table, the fixed-interest ginning of 1999. The interest period has been period exceeds 10 years for about 50 per cent of extended by four years from expiry, in other the company’s interest-bearing debt. words until the end of 2002 and the beginning All properties acquired directly by Ejen- of 2003, respectively. The interest rate fixed is domsSelskabet Norden in 1997 were financed on a level with the current rate of about 6.5 per on acquisition, as the company took advantage cent. The company does not use financial in- of the low level of interest rates by securing struments except in situations where it needs long-term financing at fixed interest rates. The to eliminate risk. properties of A/S Kalkværksgrundene are un-

34 R I S K F A C T O R S

Investing in EjendomsSelskabet Norden is tan- about DKK 7 million, corresponding to an tamount to buying a share of a pure property in c r ease in the value of the prop e r ties of DKK portfolio consisting of commercial and resi- 100 million at a yield tar get of 7 per cent. dential properties and freehold flats located in The company’s liabilities are largely a mix- Copenhagen. ture of shareholders’ equity and long-term The risk relates partly to the value of assets debt. Most of the company’s debt is long-term and liabilities relative to the market value ap- at fixed interest rates. A significant share of the plying from time to time, and partly to the var- iables that affect current earnings. For the most part, the company’s assets consist of properties, and the related risks include the yield on the properties relative to the market yield. The table at the bottom of this page shows the relationship between yield targets and net asset value per share. The table illustrates the large fluctuations in net asset value per share in the event of a one percentage point change in the yield target. In addition to cha n g es in the yield tar get, cha n g es in ren t al income and/or operat i n g co s ts at a given yield tar get also influence the pro p e r ty values. The sensitivity can be illustr a- ted as fol l o ws: A DKK 10 rise in ren t al income per squa r e metr e on avera g e for the entire prop - er ty portf olio would increase ren t al income by

Relationship between yield ta rgets and net asset va l u e at 31 December 19 97 under normalised operations *)

( % ) (DKK ’000) ( D K K )

Pro fi t Th e o re t i c a l Bo o k Val u e Sh a re - Adj. share- Net asset Pro p e r - Yi e l d on prop - ma r ket value of di f fe- ho l d e r s’ ho l d e r s’ val u e ty val u e tar get ert i e s val u e pro p e rt i e s ren t i a l equ i t y equ i t y per share per sq.m.

5 . 0 2 57, 3 3 3 5 ,14 6 , 6 6 0 3 , 3 3 6 , 0 0 2 1, 810 , 6 5 8 1, 6 5 5 , 3 9 5 3 , 4 6 6 , 0 5 3 64 6 7, 3 2 6 6 . 0 2 57, 3 3 3 4 , 2 8 8 , 8 8 3 3 , 3 3 6 , 0 0 2 9 5 2 , 8 81 1, 6 5 5 , 3 9 5 2 , 6 0 8 , 276 4 8 6 6 ,10 5 7. 0 2 57, 3 3 3 3 , 676 ,18 6 3 , 3 3 6 , 0 0 2 34 0 ,184 1, 6 5 5 , 3 9 5 1, 9 9 5 , 57 9 37 2 5 , 2 3 3 7. 7 2 57, 3 3 3 3 , 3 3 6 , 0 0 2 3 , 3 3 6 , 0 0 2 0 1, 6 5 5 , 3 9 5 1, 6 5 5 , 3 9 5 3 0 9 4, 74 8 8 . 0 2 57, 3 3 3 3 , 216 , 6 6 2 3 , 3 3 6 , 0 0 2 - 119 , 34 0 1, 6 5 5 , 3 9 5 1, 5 3 6 , 0 5 5 2 8 6 4, 57 8

*) Operations of properties owned by A/S Kalkværksgrundene are fully included in the accounts and taxes have not been taken into account. The amount stated for profit on properties has been normalised and is based on a 100 per cent letting rate. Consequently, the figures should not be taken as an indication of the budget for 1998.

35 company’s debt consists of callable mortgage debt, which means that the company can refinance on favourable fluctuations in interest rates, thereby ensuring lower interest expenses if market rates decline, or lower debts outstanding if market rates increase. The company’s long-term sensitivity to increases in the interest rate level is limited. A rise in the interest rate level in 1998 will not increase the company’s interest burden. How- ever, a 1 per cent fall in interest rates in 1998 would reduce interest expenses by some DKK 7 million. Other than interest rates, the most impor- cent fall in rental income from commercial tant factors that influence the current earnings leases to turn the company’s operating profit of the company are changes in the vacancy rate into a loss before market value adjustment of of the commercial properties and the vacating securities and value adjustment of properties. rate of the company’s portfolio of freehold The company expects to sell some 12,000 flats, combined with changes in current selling sq.m. of freehold flats in 1998. A 10 per cent prices. change in current selling prices would produce In view of the company’s expectations of a an impact on the profit before market value ad- profit before market value adjustment of secu- justment of securities and value adjustment of rities and value adjustment of properties of properties of approximately DKK 8 million or DKK 85 million in 1998, it will take a 40 per nearly 10 per cent.

36 O T H E R C O M P A N Y I N F O R M A T I O N

Name and Registered Office connection with decontamination of land are The name of the Compa n y is Ejendoms- charged to the lessees. Se l s ka b e t Nor den A/S. The reg i s ter ed office The Compa ny ’ s prop e r ty portf olio, howe- of the Compa n y is situated in the City of Copen- ver , includes a few sites reg i s ter ed with was te ha g en at Tol d b o d g ade 53–55, DK-1 253 Copen- deposits, but without any requ i r ement of site ha g en K, tel. +45 3369 4141, fax +45 3369 4142 . de c o n t amination and without any rest ri c t i o n s to the present activity. The costs of potential de- Date of Incorporation co n t amination of such sites will not materi a l l y The Company was incorporated on 1 April af f ect the Compa ny ’ s future operating pro fi t s . 1902. Related Party Transactions Objects EjendomsSelskabet Norden may enter into As set out in Article 2.1 of the Articles of As- property transactions with related parties, i.e. sociation the objects of the Company are to the Company’s shareholders, bankers or mort- own, manage and trade real property, to con- gage credit institutions. Like the Company’s duct related activities, to carry out investment other property transactions, such transactions activities related to real property and to un- are carried out on normal market terms. dertake any other investment activities as determined by the Board of Directors. Cooperation Agreements The Company has not entered into any mate- Registration rial cooperation agreements. The Company is registered with the Danish Commerce and Companies Agency under Bankers Company Reg. No. 22.131. The Company is re- The Company’s principal bankers are Unibank gistered with the Danish tax authorities under A/S and Bikuben Girobank A/S. SE No. 15 72 00 18. In addition, the Company has obtained mortgage credit loans from Nykredit A/S, Financial Year BRFkredit A/S and Realkredit Danmark A/S. The Company’s financial year is the calendar year, i.e. 1 January to 31 December. Group Structure The EjendomsSelskabet Norden Group con- Environmental Matters sists of a parent company with 20 subsidiary The classification of most of EjendomsSelska- undertakings. See note 3 to the Parent Compa- bet Norden’s properties is such that current ny’s financial statements. environmental legislation does not apply to the The background of the Group structure is type of lessees who occupy these properties. historical and has typically come about in con- The Company’s lessees are under an obligation nection with the acquisition of properties, to make their own investigations of any envi- where acquisitions by companies, rather than ronmental limitations when moving into the outright purchases, can be cost-reducing and Company’s properties, and any expenses in advantageous for tax reasons.

37 Litigation The Company is not involved in and does not expect to be involved in any legal, arbitration or administrative proceedings, including tax proceedings, which may have or may be expected to have a material effect on the financial position of the Company. Management is not aware of any such proceedings to be expected.

38 S I G N A T U R E S

Copenhagen, 20 January 1998

BOARD OF MANAGEMENT

Jens Chr. Steglich-Petersen Peter Morten Andreassen

BOARD OF DIRECTORS

Steen Langebæk Michael Colding-Jørgensen (Chairman) (Deputy Chairman)

Erik Gregers Hansen Christian Kjær Niels Christian Nielsen

39 AUDITORS’ REPORT the financial statements. Our audit included We have audited the consolidated financial an assessment of the accounting policies ap- statements and annual financial statements of plied and estimates made. In addition, we have EjendomsSelskabet Norden A/S for the year evaluated the overall adequacy of the presenta- 1997 presented by the Board of Directors and tion in the financial statements. the Board of Management. Our audit has not resulted in any qualifica- tions. Basis of opinion We have planned and conducted our audit in Opinion accordance with generally accepted auditing In our opinion, the financial statements have standards as applied in Denmark to obtain rea- been prepared in accordance with the account- sonable assurance that the financial statements ing provisions of Danish legislation and give a are free from material misstatements. Based on true and fair view of the Group’s and the an evaluation of materiality and risk, we have, Parent Company’s assets and liabilities, finan- during the audit, tested the basis and docu- cial position and profit/loss for the year. mentation for the amounts and disclosures in

Copenhagen, 20 January 1998

KPMG C. Jespersen

Birger Kjerri Hansen Aksel H. Olsen State Authorised Public Accountant State Authorised Public Accountant

Ernst & Young Statsautoriseret revisionsaktieselskab

Kurt Rasmussen Tom Hornbøll State Authorised Public Accountant State Authorised Public Accountant

40 D I R E C T O R S ’ C U R R I C U L U M V I T A E

Steen Langebæk Erik Gregers Hansen (Chairman) Other directorships: Chairman of the Board of Other directorships: Deputy Chairman of the Directors of: Dansk Portefølje Holding A/S; Board of Directors of: A/S N. Foss Electric Energy Holding A/S, Investeringsselskabet af Holding; BASF Danmark A/S; Danisco A/S. 14.11.97 A/S. Member of the Board of Direc- Directorships abroad: Chairman of the Board tors of: Bisca Holding A/S; Carli Gry Interna- of Directors of: The Russian-Danish Rehousing tional A/S; D/S Norden A/S; A/S Motor- Company, St. Petersburg. Member of the tramp; Danstruplund Invest A/S. Board of Directors of: PA Holding Group Ltd., London. Christian Kjær

Michael Colding-Jørgensen Other directorships: Chairman of the Board of (Deputy Chairman) Directors of: NKT Holding A/S; A/S Segalit af 1/4-1987; Sankt Gjertruds Stræde 10 A/S; A/S Finance Director of A/S Forsikringsselskabet Højkol. Deputy Chairman of the Board of Di- Codan. Other directorships: Member of the rectors of: Nilfisk A/S. Member of the Board Board of Directors of: Codan Invest A/S; Ejen- of Directors of: Aalborg Portland Holding A/S; domsaktieselskabet Fabriciusstrasse A/S; Ejen- Aktieselskabet Potagua; Ejendomsselskabet domsaktieselskabet Ibstrup-Parken 1; A/S Op- DFK A/S; Nye Kommercielle Aktiviteter Hol- næsgaard I; A/S Opnæsgaard II; Ejendoms- ding A/S; FLS Industries A/S; FLS Miljø A/S; selskabet 27. november 1990 A/S; Ejendomssel- FLS Fuller Engineering A/S; FLS Cement In- skabet Holmens Kanal A/S; Hercules Estates vestment A/S. A/S; Haderslev Centrum A/S; Farum Centrum A/S; Nimes A/S; Ejendomsselskabet Århus A/S; Merkur Ejendomsinvest A/S; Codan Ar- Professor Niels Christian Nielsen bejdsskadeforsikring A/S; The Survey Associa- tion (Besigtelses Kontoret af 1914 A/S); Codan Other directorships: Deputy Chairman of the Invest Liv II A/S; Nadoc 1 A/S; Nadoc 2 A/S; Board of Directors of: Dansk Shell A/S. Mem- Nadoc 3 A/S; Nadoc 4 A/S; Nadoc 5 A/S. ber of the Board of Directors of: Grundfos A/S; Aktieselskabet Dampskibsselskabet Torm; Den Danske Bank A/S; Otto Mønsted A/S; Cowiconsult A/S; The Danish National Re- search Foundation (Danmarks Grundforsk- ningsfond).

41 A C C O U N T I N G P O L I C I E S

Basis of preparation Profit and loss account The consolidated accounts and annual ac- Accruals counts have been prepared in accordance with The profit/loss on the sale of properties/free- the Danish Company Accounts Act and the hold flats is included in the profit and loss ac- guidelines laid down by the Copenhagen Stock count in the period in which the sales agree- Exchange, and in accordance with Danish ac- ment was finalised. Income and expenses are counting standards. accounted for on an accruals basis to match The accounting policies are unchanged the financial years. from previous years and have been consistently applied. Profit from participating interests in In order to give a more true and fair view subsidiary undertakings of EjendomsSelskabet Norden’s assets and lia- The profit and loss account for the Parent bilities, financial position and profit/loss for Company includes the Company’s proportion- the year, see Section 4 (4) of the Danish Com- al share of the profit or loss of subsidiary un- pany Accounts Act, commercial and residential dertakings in the income year, adjusted for in- properties are revalued to market price, as in tercompany profits. previous years. Valuation differences are taken to the profit and loss account. Revaluations of Extraordinary items the property portfolio are allocated to the re- Extraordinary items comprise income and ex- valuation reserve under shareholders’ equity penses originating from activities other than via the allocation of profit. ordinary operations.

Consolidation Tax The consolidated accounts comprise the Par- Estimated tax on the year’s taxable income is ent Company and subsidiary undertakings in charged to the profit and loss account, and the which the Parent Company holds participating year’s movements in provisions for deferred interests and exerts a controlling influence. tax are taken to the profit and loss account. The consolidated accounts have been prepared Tax on extraordinary items is stated separately. on the basis of the annual accounts of the in- As a general rule, the Parent Company is dividual companies by adding accounting taxed on a pooled basis with all its wholly- items of a uniform nature and subsequently owned subsidiary undertakings. The corpora- eliminating intercompany profit-and-loss-ac- tion tax liability is allocated among the com- count and balance-sheet items. panies of the tax pool in proportion to their On acquisition of companies, the diffe- taxable income (full allocation). rence between the acquisition cost and the net asset value is written off against reserves. Balance Sheet Newly-acquired companies are included in Tangible fixed assets the consolidated accounts and in the accounts Co m m e r cial and residential prop e r ties are of the Parent Company as from the date of stat ed at market value on the basis of val u a t i o n s acquisition. at regular inter vals. The value adjustments are ca r ried to the prof it and loss account.

42 Mortgage deeds are stated at estimated market value at the time of issue less write-downs to cover expected losses. The portfolio is written down if the price on the balance-sheet date is lower than on the date of issue. Shares are stated at officially quoted prices. Unlisted shares are stated at the lower of cost and market value. Any revaluation is transfer- red to the revaluation reserve. Bonds are stated at officially quoted prices.

Liabilities and provisions Deferred taxation Deferred taxation is allocated at 34 per cent of Freehold flats are stated at market value as the difference between book and taxable val- let. Freehold flats with terminated leases which ues. were vacant at 31 December 1997 are stated un- Deferred taxation regarding investment der current assets as they are put up for sale, properties is not expected to become payable whereas the residual portfolio is stated under within five years of the balance sheet date and fixed assets. is accordingly disclosed in the notes to the ac- Other plant, machinery, fixtures and fit- counts only. tings is valued at cost less accumulated depreciation. Depreciation is calculated on a straight Maintenance liabilities, etc. line basis over the expected useful lives of the The balance sheet includes a provision for assets, estimated at three and five years. maintenance in accordance with Section 18 (b) of the Danish Act on Temporary Regulation of Financial fixed assets Housing Conditions. Provisions for other lia- Participating interests in subsidiary under- bilities pursuant to Danish landlord and tenant takings are stated at net asset value. legislation are made for residential properties only. Current assets Freehold flats stated under current assets Cash Flow Statement are vacant flats which are expected to be sold The cash flow statement shows the Group’s during the coming year. The flats are stated at cash flow during the year and its cash position market value as let. at year-end. The cash flow is divided into three Debtors are stated at nominal value less main areas: Operating activities, investing ac- write-downs to cover losses on the basis of an tivities and financing activities. individual assessment The cash flow from operating activities is Accruals include capital losses on loan con- presented indirectly in the cash flow statement versions. Capital losses are charged against fi- on the basis of the operating income and ex- nancial expenses over the term of the loan. penditure stated in the profit and loss account. Own shares are stated at cost. Shareholders’ equity includes a reserve of the equivalent amount.

43 N Y V E J 8 A / B - 10 A / B

F R E D E R I K S B E R G C

44 P R O F I T A N D L O S S A C C O U N T

GROUP 19 97 19 9 6 Note (D K K ’ 0 0 0 ) (D K K ’ 0 0 0 )

Rental income 3 04 , 614 24 6 , 574 Operating costs 1 - 131, 918 - 9 9 , 3 2 2 P ro fit from letting of pro p e rt i e s 17 2 , 6 9 6 147, 2 5 2

Sales proceeds from freehold flats and properties 107, 6 5 0 9 8 , 4 81 Sales costs 2 - 7 5 , 8 67 - 7 2 , 7 34 P ro fit from sale of freehold flats and pro p e rt i e s 31, 7 8 3 2 5 , 747

P ro fit on pro p e rt i e s 2 04 , 47 9 17 2 , 9 9 9

Depreciation 7 - 1, 24 5 - 1, 5 2 5 Administrative expenses - 19 , 6 5 6 - 17,76 5 P ro fit befo re fi n a n c i n g 183 , 57 8 15 3 , 7 0 9

Financing costs 3 - 115 ,15 8 - 111, 9 8 9 P ro fit befo re market value adjustment of s e c u rities and value adjustment of pro p e rt i e s 6 8 , 4 2 0 41, 7 2 0

Market value adjustment of securities 4 1, 3 6 5 1, 8 0 3 Value adjustment of properties 6 3 5 , 44 6 10 , 0 94 P ro fit befo re ta xation and ex t ra o rd i n a ry ite m s 10 5 , 2 31 5 3 , 617

Tax on profit on ordinary activities 5 - 5 , 76 6 0 P ro fit on ord i n a ry activities after ta xa t i o n 9 9 , 4 6 5 5 3 , 617

Extraordinary profit after taxation 0 0

P ro fit for the ye a r 9 9 , 4 6 5 5 3 , 617

45 B A L A N C E S H E E T A S A T 3 1 D E C E M B E R

GROUP 19 97 19 9 6 Note (D K K ’ 0 0 0 ) (D K K ’ 0 0 0 )

Assets

Tangible fi xed assets: Commercial properties 6 2 , 2 5 0 , 54 2 1, 9 2 0 ,101 Residential properties 6 514 , 3 6 8 376 ,19 2 Freehold flats 6 5 64 , 2 2 6 47 0 , 6 8 0 Other plant, machinery, fixtures and fittings 7 4 , 5 9 3 4 ,19 2 Total tangible fi xed assets 3 , 3 3 3 , 7 2 9 2 , 771,16 5

Financial fi xed assets: Participating interest in associated undertaking 8 3 , 9 3 0 0 Total financial fi xed assets 3 , 9 3 0 0

Total fi xed assets 3 , 3 37, 6 5 9 2 , 771,16 5

P ro p e rties for sale: Freehold flats for sale 6 6 , 8 6 6 6 ,16 0 Total pro p e rties for sale 6 , 8 6 6 6 ,16 0

D e b to rs etc.: Debtors 12 3 , 2 9 5 6 8 , 6 2 5 Prepayment and deferred income 2 8 , 0 94 2 8 , 27 9 Total debto rs etc. 151, 3 8 9 9 6 , 9 04

S e c u ri t i e s : Own shares 9 0 3 , 6 9 8 Mortgage deeds 10 7 0 , 94 0 6 9 , 414 Bonds 10 18 , 5 6 5 0 Total securi t i e s 8 9 , 5 0 5 7 3 ,112

Cash at bank and in hand 112 , 918 9 , 5 3 0

Total current assets 36 0 , 67 8 18 5 , 7 0 6

Total assets 3 , 6 9 8 , 3 37 2 , 9 5 6 , 871

46 B A L A N C E S H E E T A S A T 3 1 D E C E M B E R

GROUP 19 97 19 9 6 Note (D K K ’ 0 0 0 ) (D K K ’ 0 0 0 )

Shareholders’ equity and liabilities

S h a re h o l d e rs’ equ i t y: Share capital 5 3 6 , 541 3 5 9 , 3 2 0 Share premium account 3 5 9 , 0 8 6 10 2 , 6 91 Revaluation reserve 19 0 , 9 87 97, 2 31 Reserve for own shares 0 3 , 6 9 8 Other reserves 0 2 57, 6 6 3 Retained profit 5 6 8 , 7 81 3 5 0 , 2 0 6 Total share h o l d e rs’ equ i t y 11 1, 6 5 5 , 3 9 5 1,17 0 , 8 0 9

P rov i s i o n s : Deferred taxation 12 7, 9 5 2 8 , 616 Total prov i s i o n s 7, 9 5 2 8 , 616

L o n g - te rm liabilities: Mortgage debt 13 1, 0 6 2 , 312 1, 010 , 5 8 8 Provision for maintenance 6 0 ,15 0 16 , 671 Prepaid rent and deposits 64 , 4 5 2 5 2 , 0 94 Financial institutions 14 5 9 3 , 611 5 6 5 , 6 2 9 Total long-te rm liabilities 1, 7 8 0 , 5 2 5 1, 644 , 9 8 2

C u rrent liabilities: Mortgage debt 13 3 3 , 37 3 2 5 , 612 Mortgage debt (freehold flats for sale) 13 1, 0 01 1, 371 Financial institutions 14 9 5 , 6 9 0 18, 07 8 Debt concerning property acquisitions 0 21, 6 0 8 Corporation tax 4 , 415 0 Other creditors 8 5 ,111 4 2 , 4 3 9 Dividends 34, 87 5 2 3 , 3 5 6 Total current liabilities 2 54 , 4 6 5 13 2 , 4 64

Total liabilities 2 , 0 34 , 9 9 0 1, 777, 44 6

Total share h o l d e rs’ equity and liabilities 3 , 6 9 8 , 3 37 2 , 9 5 6 , 871

Contingent liabilities and charged assets 15

47 C A S H F L O W S T A T E M E N T

GROUP 19 97 19 9 6 Note (D K K ’ 0 0 0 ) (D K K ’ 0 0 0 )

Profit before taxation and extraordinary items 10 5 , 2 31 5 3 , 617 Depreciation and provisions 1,24 5 2 ,16 3 Cost price of freehold flats and properties sold 6 3 , 7 27 61, 4 8 9 Value adjustment of properties - 3 5 , 44 6 - 10 , 0 94 O p e rating pro fit adjusted for i tems of a non-cash nature 134 , 7 57 107,17 5

M ovements in: Trade debtors *) -7, 7 3 4 - 10 , 3 27 Trade creditors *) 12 , 4 9 2 5 ,13 9 Deposits received from tenants *) 9 , 3 8 2 6 , 4 9 3 Tax paid on account - 4 , 6 3 0 0 Cash fl ow from operating activities 144 , 2 67 10 8 , 4 8 0

Investment in properties *) - 2 8 8 , 84 5 - 3 6 5 , 2 5 5 Acquisitions Cash acquisition price 1 - 154, 97 5 0 Net liquidity taken over 1 15 , 811 0 Divestments Sales proceeds 2 2 , 7 0 0 0 Net liquidity surrendered 2 - 2 , 7 0 0 0 Net change in investment in fixed assets *) - 1, 476 - 1, 718 Cash fl ow from inve sting activities - 4 2 9 , 4 8 5 - 3 6 6 , 97 3

Net cash proceeds from capital increases 2 6 3 , 2 24 0 Net increase in mortgage debt 3 5 5 , 041 2 2 , 3 0 6 Increase in other debt finance 10 5 , 5 94 2 0 9 , 2 2 9 Change in investment in securities *) - 11, 8 97 4 3 , 6 8 5 Dividends paid - 2 3 , 3 5 6 - 2 2 , 6 37 Cash fl ow from fi n a n c i n g 3 8 8 , 6 0 6 2 5 2 , 5 8 3

Net cash fl ow from operating, i nve sting and financing activities 10 3 , 3 8 8 - 5 , 910

Cash infl ow / o u t fl ow for the ye a r: Cash at bank and in hand, beginning of year 9 , 5 3 0 15 , 44 0 Cash at bank and in hand, year-end 112 , 918 9 , 5 3 0 10 3 , 3 8 8 - 5 , 910

*) Not including acquisitions and sales of undertakings.

48 N O T E S T O T H E C A S H F L O W S T A T E M E N T

GROUP 19 97 19 9 6 Note (D K K ’ 0 0 0 ) (D K K ’ 0 0 0 )

Note 1. Ac quisitions Assets acquired: Properties 3 0 2 , 3 0 5 0 Plant and machinery 17 0 0 Associated undertakings 3 , 9 3 0 0 Current assets 6 3 , 4 0 2 0 Goodwill, written off against shareholders’ equity 13 , 6 2 0 0 Liabilities taken over: Provisions and long-term liabilities - 5 3 ,114 0 Current liabilities - 4 , 94 6 0 Ac quisition pri c e 3 2 5 , 3 67 0 Of which attributable to exchange of shares -17 0 , 3 9 2 0 Cash acquisition pri c e 154 , 97 5 0 Net liquidity taken over - 15 , 811 0 Cash fl ow applied to make acqu i s i t i o n s 13 9 ,164 0

Note 2. Dive st m e n t s Assets sold: Current assets 2 , 7 0 0 0 Sales pri c e 2 , 7 0 0 0 Liquidity surrendered - 2 , 7 0 0 0 Cash fl ow from dive stments 0 0

Note 3. Increase in mort ga ge debt Mortgage debt raised 24 0 , 5 8 3 5 5 9 , 271 Mortgage debt repaid - 14 5 , 674 - 5 0 8 , 9 9 3 Instalments paid - 3 9 , 8 6 8 - 27, 97 2 Cash fl ow from mort ga ge debt 5 5 , 041 2 2 , 3 0 6

49 N O T E S T O T H E A C C O U N T S

GROUP 19 97 19 9 6 (D K K ’ 0 0 0 ) (D K K ’ 0 0 0 )

Note 1. Operating cost s Property taxes 2 3 , 810 19 , 0 2 9 Maintenance not covered by owners’ associations 3 3 , 0 2 9 2 6 , 5 9 0 Other operating costs 7 5 , 07 9 5 3 , 7 0 3 Total operating cost s 131, 918 9 9 , 3 2 2

Note 2. Sales cost s Book value of freehold flats and properties sold 6 3 , 7 27 61, 4 8 9 Sales costs 6 , 5 8 2 7, 310 Capital losses 3 , 6 0 8 1, 0 97 Refurbishing 1, 9 5 0 2 , 8 3 8 Total sales cost s 7 5 , 8 67 7 2 , 7 34

Note 3. Financing cost s Financial income: Bonds 2 , 7 9 9 3 , 071 Mortgage deeds, including capital gains 7, 844 7, 513 Credit institutions and other debtors 4 , 44 8 1, 8 0 9 Dividends 14 3 14 6 Total financial income 15 , 2 34 12 , 5 3 9

Financial ex p e n s e s : Interest on mortgage debt 9 0 , 5 0 3 8 8 , 6 24 Credit institutions 3 9 , 8 8 9 3 5 , 9 04 Total financial ex p e n s e s 13 0 , 3 9 2 124 , 5 2 8

Total financing cost s - 115 ,15 8 - 111, 9 8 9

Note 4. Market value adjustment of securi t i e s Realised gains on bonds 74 6 1,87 9 Realised gains on shares 6 84 18 5 Market value adjustment of bonds 12 2 0 Total ga i n s 1, 5 5 2 2 , 0 64

Realised losses on mortgage deeds 8 2 61 Market value adjustment of bonds 17 9 0 Total losses 187 2 61

Total market value adjustment of securi t i e s 1, 3 6 5 1, 8 0 3

50 N O T E S T O T H E A C C O U N T S

GROUP 19 97 19 9 6 (D K K ’ 0 0 0 ) (D K K ’ 0 0 0 )

Note 5. Tax on pro fit on ord i n a ry activities Tax on profit on ordinary activities 6 , 4 3 0 0 Prior-year adjustment 0 0 Adjustment of deferred tax - 6 64 0 Total tax on pro fit on ord i n a ry activities 5, 76 6 0

Tax paid on account during the ye a r 4 , 6 3 0 0

Note 6. Properties (DKK ’000) Co m m e rc i a l Res i d e n t i a l Free h o l d properties properties flats

Cost at 1 January 1997 2,069,815 221,828 384,259 Additions in new subsidiary undertakings 46,278 62,406 113,274 Additions on acquisition 196,143 0 896 Additions by renovation 61,152 26,120 4,534 Disposals -2,874 -11,438 -27,378 C o st at 31 December 19 97 2 , 37 0 , 514 2 9 8 , 916 47 5 , 5 8 5

Accumulated revaluation at 1 January 1997 138,551 175,971 92,581 Revaluation in new subsidiary undertakings 20,601 59,760 24,012 Revaluation to market value during the year 13,659 36,011 124 Reversal of revaluation on sale -1,194 -15,486 -5,893 Reversal of revaluation -2,878 -12,346 0 Ac c u m u l a ted revaluation at 31 December 19 97 16 8 , 7 3 9 24 3 , 910 110 , 8 24

Accumulated write-downs at 1 January 1997 288,265 21,607 0 Write-downs in new subsidiary undertakings 7,573 600 15,853 Write-downs to market value during the year 3,351 8,908 0 Reversal of write-downs on sale 0 0 -536 Reversal of write-downs -10,478 -2,657 0 Ac c u m u l a ted wri te - d owns at 31 December 19 97 2 8 8 , 711 2 8 , 4 5 8 15 , 317

Not vacated 564,226 Portfolio for sale 6,866

Book value at 31 December 19 97 2 , 2 5 0 , 54 2 514 , 3 6 8 571, 0 9 2

Book value at 31 December 19 9 6 1, 9 2 0 ,101 376 ,19 2 476 , 84 0

Cash pro p e rty valuation at 1 January 19 97 1, 87 3 , 7 0 6 5 2 5 , 74 0 5 91, 5 0 9

51 N O T E S T O T H E A C C O U N T S

GROUP 19 97 19 9 6 (D K K ’ 0 0 0 ) (D K K ’ 0 0 0 )

Note 6. Pro p e rties, continued M o rt ga ge deeds re g i ste red to the ow n e r Uncollateralised 134 , 8 3 6 10 2 , 2 0 0 Pledged as security for debt 6 34 , 914 277, 0 0 0 Total issue 76 9 , 7 5 0 37 9 , 2 0 0

In addition, security has been provided to owners’ associations for the payment of community expenses.

Liabilities for interior maintenance of freehold flats for which no provision is made 9 , 6 6 3 8 , 7 9 8

Liabilities pursuant to Section 18 (b) of the Danish Act on Temporary Regulation of Housing Conditions are capitalised at a total amount of 41,77 2 13 , 0 04 No provisions are made for other liabilities pursuant to the Danish Act on Temporary Regulation of Housing Conditions.

Note 7. Other plant, mach i n e ry, fi x t u res and fi t t i n g s Cost at 1 January 1997 8 , 4 24 6 , 7 0 6 Additions in new subsidiary undertakings 2 3 9 0 Additions 1, 8 0 2 2 , 2 6 3 Disposals - 2 , 7 34 - 54 5 C o st at 31 December 19 97 7, 7 31 8 , 4 24 Accumulated depreciation at 1 January 1997 4 , 2 3 2 3 ,174 Depreciation in new subsidiary undertakings 6 9 0 Depreciation on disposals during the year - 2 , 4 0 8 - 4 67 Depreciation during the year 1,24 5 1, 5 2 5 Ac c u m u l a ted depreciation at 31 December 19 97 3 ,13 8 4 , 2 3 2 Book value at 31 December 19 97 4 , 5 9 3 4 ,19 2

Note 8. Pa rticipating inte re st in associated underta k i n g Balance at 1 January 1997 0 0 Additions in new subsidiary undertaking 10 , 0 0 0 0 C o st at 31 December 19 97 10 , 0 0 0 0 Revaluation at 1 January 1997 0 0 Revaluation at 31 December 1997 0 0 Write-downs at 1 January 1997 0 0 Write-downs in new subsidiary undertaking 6, 07 0 0 Wri te - d owns at 31 December 19 97 6 , 07 0 0 Book value at 31 December 19 97 3 , 9 3 0 0

The Company has a 25% participating interest in Ejendomsaktieselskabet Springbanen.

52 N O T E S T O T H E A C C O U N T S

GROUP 19 97 19 9 6 (D K K ’ 0 0 0 ) (D K K ’ 0 0 0 )

Note 9. Own share s The Company does not hold any own shares as at the balance sheet date. During the financial year, 12,751 shares of DKK 100 each were sold, corresponding to 0.35% of the share capital. The shares were sold at DKK 315 per share in the open market. Book value at 31 December 19 97 0 3 , 6 9 8

M o rt ga ge Note 10. Mortgage deeds and bonds (DKK’000) d e e d s B o n d s

Cost at 1 January 1997 8 0 , 9 3 5 0 Additions in new subsidiary undertakings 5 , 7 9 5 0 Additions 5 , 5 0 3 6 8 , 6 37 Disposals on sale and redemption - 10 , 07 0 - 5 0 ,194 C o st at 31 December 19 97 8 2 ,16 3 18 , 44 3

Accumulated revaluation at 1 January 1997 0 0 Revaluation during the year 0 13 5 Reversal of revaluation 0 0 Ac c u m u l a ted revaluation at 31 December 19 97 0 13 5

Accumulated write-downs at 1 January 1997 11, 5 2 5 0 Write-downs in new subsidiary undertakings 1, 377 0 Write-downs during year 413 13 Reversal of write-downs - 2 , 0 9 2 0 Ac c u m u l a ted wri te - d owns at 31 December 19 97 11, 2 2 3 13

Book value at 31 December 19 97 7 0 , 94 0 18 , 5 6 5

Book value at 31 December 19 9 6 6 9 , 414 0

19 97 19 9 6 (D K K ’ 0 0 0 ) (D K K ’ 0 0 0 ) Note 11. Share h o l d e rs’ equ i t y The share capital consists of 5,365,412 shares of DKK 100 each.

M ovements in share h o l d e rs’ equ i t y: Shareholders’ equity at 1 January 1997 1,17 0 , 8 0 9 1,14 0 , 54 8 Net proceeds from rights issue 2 6 3 , 2 24 0 Net proceeds from exchange of shares 17 0 , 3 9 2 0 Write-off of goodwill - 13 , 6 2 0 0 Profit for the year 9 9 , 4 6 5 5 3 , 617 Dividends - 34 , 87 5 - 2 3 , 3 5 6 S h a re h o l d e rs’ equity at 31 December 19 97 1, 6 5 5 , 3 9 5 1,17 0 , 8 0 9

53 N O T E S T O T H E A C C O U N T S

GROUP Share Re- Reserve Share premium valuation for own Other Retained (DKK ’000) capital account reserve shares reserves profit Total Balance at 1 January 1997 359,320 102,691 97,231 3,698 257,663 350,206 1,170,809 Net proceeds from rights issue 119,773 143,451 263,224 Net proceeds from exchange of shares in A/S Kalkværksgrundene 57,448 112,944 170,392 Write-off of goodwill on a c quisition of shares in A/S Kalkværksgrundene -13,620 -13,620 Sale of own shares -3,698 3,698 0 Reversal of revaluation of freehold flats sold -22,037 22,037 0 Profit for the year 99,465 99,465 Dividends -34,875 -34,875 Value adjustment of properties 35,446 -35,446 0 Transfers 80,347 -247,741 167,394 0 Balance at 31 December 1997 536,541 359,086 190,987 0 0 568,781 1,655,395

19 97 19 9 6 (D K K ’ 0 0 0 ) (D K K ’ 0 0 0 )

Note 12. Defe rred ta xa t i o n Accumulated provision at 1 January 1997 8 , 616 8 , 616 Adjustment during the year - 6 64 0 Balance at 31 December 19 97 7, 9 5 2 8 , 616 In addition, the Company is subject to a contingent tax liability of DKK 46,757,000 concerning investment properties, which has not been provided in the accounts (1996: DKK 89,504,000).

Note 13. Mort ga ge debt Total book value of mort ga ge debt: Investment properties 1, 0 6 2 , 312 1, 010 , 5 8 8 Freehold flats for sale 1, 0 01 1, 371 Current portion of mortgage debt 33 , 37 3 2 5 , 612 Total mort ga ge debt 1, 0 9 6 , 6 8 6 1, 0 37, 571

Cash value 1, 0 87, 0 3 0 1, 0 3 2 ,131 Mortgage debt falling due after five years 9 01,74 6 8 5 3 , 2 2 2

54 N O T E S T O T H E A C C O U N T S

GROUP

The average interest rate on these loans is 7.3 per cent p.a.

Short-term debt to financial institutions can be increased by an unutilised overdraft facility of DKK 200 million and an ap- proved credit line of DKK 250 million.

Note 15. Contingent liabilities and ch a rged assets Reference is made to note 6 for liabilities relating to properties.

The Company has concluded a conditional agreement on the acquisition of additional land at Holmen in Copenhagen. The purchase price amounts to DKK 62 million. Norden has provided security for payment of the purchase price in the form of 200,000 shares in A/S Kalkværksgrundene.

The Company has also concluded financial leasing agreements under which DKK 1,100,000 will be payable in 1998 and 1999.

19 97 19 9 6 (D K K ’ 0 0 0 ) (D K K ’ 0 0 0 )

Note 16. Note to which no refe r ence is made in the accounts Wages and salaries 19 , 8 0 6 15 , 914 Pension contributions 6 5 4 6 19 , 871 15 , 9 6 0

Of which: Board of Directors 5 8 5 5 8 5 Board of Management 2 , 4 5 0 2 ,19 5

Average number of employees 6 6 4 9 Of whom real-property staff 3 5 2 2

The Company has no pension commitments etc. to the members of its Board of Directors or its Board of Management.

55 F R E D E R I K S B O R G G A D E 4 - 6

C O P E N H A G E N K

56 P R O F I T A N D L O S S A C C O U N T

PARENT COMPANY 199 7 199 6 Note (D K K ’ 0 0 0 ) (D K K ’ 0 0 0 )

Rental income 2 21,19 2 197, 576 Operating costs 1 -9 5 , 74 8 - 8 2 , 0 5 2 Pro f it from letting of pro p e rt i e s 12 5 , 444 115 , 5 24

Sales proceeds from freehold flats and properties 44 ,121 76 , 0 84 Sales costs 2 - 2 8 , 2 6 2 - 61,147 P ro fit from sale of freehold flats and pro p e rt i e s 15 , 8 5 9 14 , 9 37

P ro fit on pro p e rt i e s 141, 3 0 3 13 0 , 4 61

Depreciation 8 - 1,14 5 - 7 0 8 Administrative expenses - 16 , 2 3 3 - 17, 8 64 P ro fit befo re participating inte re sts in subsidiary underta k i n g s 12 3 , 9 2 5 111, 8 8 9

Profit before tax of participating interests in subsidiary undertakings 3 6 9 , 761 10 ,144 Pro f it befo re fi n a n c i n g 19 3 , 6 8 6 12 2 , 0 3 3

Financing costs 4 - 101, 0 5 8 - 8 9 , 3 5 2 P ro fit befo re market value adjustment of securities and value adjustment of pro p e rt i e s 9 2 , 6 2 8 3 2 , 6 81

Market value adjustment of securities 5 815 1, 8 0 3 Value adjustment of properties 7 11, 7 8 8 19 ,13 3 P ro fit befo re ta xation and ex t ra o rd i n a ry ite m s 10 5 , 2 31 5 3 , 617

Tax on profit on ordinary activities 6 -5 , 76 6 0 P ro fit on ord i n a ry activities after ta xa t i o n 9 9 , 4 6 5 5 3 , 617

Extraordinary profit after taxation 0 0

P ro fit for the ye a r 9 9 , 4 6 5 5 3 , 617

57 B A L A N C E S H E E T A S A T 3 1 D E C E M B E R

PARENT COMPANY 199 7 199 6 Note (D K K ’ 0 0 0 ) (D K K ’ 0 0 0 )

Assets

Tangible fi xed assets: Commercial properties 7 1, 6 37, 9 97 1, 3 9 8 , 8 61 Residential properties 7 413 ,17 9 376 ,19 2 Freehold flats 7 3 51,18 2 371,14 0 Other plant, machinery, fixtures and fittings 8 4 , 3 6 2 4 ,18 3 Total tangible fi xed assets 2 , 4 0 6 , 7 2 0 2 ,15 0 , 376

Financial fi xed assets: Participating interests in subsidiary undertakings 3 4 8 3 , 714 44 0 , 2 3 3 Amounts owing from subsidiary undertakings 5 5 ,104 3 8 , 044 Total financial fi xed assets 5 3 8 , 818 47 8 , 277

Total fi xed assets 2 , 94 5 , 5 3 8 2 , 6 2 8 , 6 5 3

P ro p e rties for sale: Freehold flats for sale 7 5 , 4 34 4 , 3 84 Total pro p e rties for sale 5 , 4 34 4 , 3 84

D e b to rs etc.: Debtors 6 5 ,197 7 0 ,117 Dividends due from subsidiary undertakings 316 , 0 0 0 0 Prepayment and deferred income 14 , 9 31 15 , 6 04 Total debto rs etc. 3 9 6 ,12 8 8 5 , 7 21

S e c u ri t i e s : Own shares 9 0 3 , 6 9 8 Mortgage deeds 10 61, 2 84 6 6 , 2 24 Bonds 10 18 , 5 6 5 0 Total securi t i e s 7 9 , 84 9 6 9 , 9 2 2

Cash at bank and in hand 5 0 , 3 8 3 9 , 44 6

Total current assets 5 31, 7 94 16 9 , 47 3

Total assets 3 , 477, 3 3 2 2 , 7 9 8 ,12 6

58 B A L A N C E S H E E T A S A T 3 1 D E C E M B E R

PARENT COMPANY 199 7 199 6 Note (D K K ’ 0 0 0 ) (D K K ’ 0 0 0 )

Shareholders’ equity and liabilities

S h a re h o l d e rs’ equ i t y: Share capital 5 3 6 , 541 3 5 9 , 3 2 0 Share premium account 3 5 9 , 0 8 6 10 2 , 6 91 Revaluation reserve 24 6 , 6 8 0 23 9 , 47 9 Reserve for own shares 0 3 , 6 9 8 Other reserves 0 2 64 , 2 5 0 Retained profit 513 , 0 8 8 2 01, 371 Total share h o l d e rs’ equ i t y 11 1, 6 5 5 , 3 9 5 1,17 0 , 8 0 9

P rov i s i o n s : Deferred taxation 12 7, 9 5 2 8 , 616 Total prov i s i o n s 7, 9 5 2 8 , 616

L o n g - te rm liabilities: Mortgage debt 13 718 , 3 5 5 6 5 5 , 5 8 8 Provision for maintenance 2 2 , 8 01 16 , 671 Prepaid rent and deposits 41, 341 3 8 , 3 3 5 Financial institutions 14 5 9 3 , 611 5 6 5 , 6 2 9 Amounts owing to subsidiary undertakings 213, 67 0 19 6 , 8 2 9 Total long-te rm liabilities 1, 5 8 9 , 77 8 1, 47 3 , 0 5 2

C u rrent liabilities: Mortgage debt 13 24 , 8 57 2 2 ,19 3 Mortgage debt (freehold flats for sale) 13 1, 0 01 1, 371 Financial institutions 14 9 5 , 6 9 0 18 , 077 Debt concerning property acquisitions 0 21, 6 07 Other creditors 67, 7 84 5 9 , 04 5 Dividends 34, 87 5 2 3 , 3 5 6 Total current liabilities 2 24 , 2 07 14 5 , 64 9

Total liabilities 1, 813 , 9 8 5 1, 618 , 7 01

Total share h o l d e rs’ equity and liabilities 3 , 477, 3 3 2 2 , 7 9 8 ,12 6

Contingent liabilities and charged assets 15

59 N O T E S T O T H E A C C O U N T S

PARENT COMPANY 199 7 199 6 (D K K ’ 0 0 0 ) (D K K ’ 0 0 0 )

Note 1. Operating cost s Property taxes 16 , 2 5 5 13 , 3 9 0 Maintenance not covered by owners’ associations 27, 0 0 2 2 3 , 9 0 2 Other operating costs 5 2 , 4 91 44, 76 0 Total operating cost s 95 , 74 8 8 2 , 0 5 2

Note 2. Sales cost s Book value of freehold flats and properties sold 2 0 , 319 5 2 , 913 Sales costs 4 ,13 0 5 , 6 87 Capital losses 2 , 4 5 6 5 9 5 Refurbishing 1, 3 57 1, 9 5 2 Total sales cost s 2 8 , 2 6 2 61,147

Note 3. Pa rticipating inte re sts in subsidiary underta k i n g s Cost at 1 January 1997 4 2 0 , 6 9 6 2 6 0 , 9 8 9 Additions, capital increase 0 141, 0 0 0 Additions by acquisition 3 2 5 , 3 67 18 , 7 07 Disposals - 8 , 341 0 C o st at 31 December 19 97 7 37, 7 2 2 4 2 0 , 6 9 6

Ac c u m u l a ted re valuation at 1 January 19 97 5 9 , 5 8 5 37, 7 3 5 Revaluation for the year 6 0 , 616 21, 8 5 0 Reversal of revaluation on divestment - 4 , 4 8 9 0 Ac c u m u l a ted revaluation at 31 December 19 97 115 , 712 5 9 , 5 8 5

Accumulated write-downs and write-offs at 1 January 1997 4 0 , 04 8 24 , 7 8 5 Write-downs for the year 5 2 15 ,13 9 Dividends 316 , 0 0 0 0 Write-off of goodwill 13 , 6 2 0 124 Ac c u m u l a ted wri te - d owns and wri te - o ffs at 31 December 19 97 3 6 9 , 7 2 0 4 0 , 04 8

Book value at 31 December 19 97 4 8 3 , 714 44 0 , 2 3 3

60 N O T E S T O T H E A C C O U N T S

PARENT COMPANY

Note 3. Pa rticipating intere s ts in subsidiary undertakings (continued)

Owner- Pre-tax Corpo- Net ship profit ration asset (DKK ’000) share Cost 1997 tax value

A/S Kalkværksgrundene 1) 99.42% 325,367 56,819 -4,558 119,210 Ejendomsselskabet Vestervoldgade 83-85/ Løngangsstræde 39 A/S 3) -246 -25 Strandborg A/S 1) 9,924 -6,466 Ejendomsselskabet 1911 A/S 1) -1,045 85 Ejendomsselskabet Vintapperhus A/S 1) -19,331 -477 Ejendomsselskabet Dalva A/S 2) -579 -59 Ejendomsselskabet Røgerigården A/S 2) -1,247 -121 Ejendomsselskabet Købmagergade 57/ Peder Hvitfeldts Stræde 6 A/S 1) 3,283 -127 Ej e n d o m s s e l s ka b e t Dr. Abi l d gå r ds Allé 14 A/S 2) 183 -6 7 Ejendomsselskabet Frederiksborggade 4-6/ Rosenborggade 2 A/S 2) 8,550 -443 Vesor ApS 3) 201 -72 Ejendomsselskabet Østergade 27/ Fiskergade 1 A/S 2) 1,311 -107 Amaliegården A/S 1) 100.00% 280,597 30,114 0 246,448 Ejendomsselskabet Frederiksstaden ApS 1) 100.00% 69 4,226 -2,021 4,206 Ejendomsaktieselskabet Kollegievej 6 2) 100.00% 28,219 -152 100 23,545 Holte Stationsvej 14 ApS 2) 100.00% 47,289 2,240 98 39,519 Ryhavevej 7 ApS 2) 100.00% 19,636 634 -231 9,744 Østergade 11 ApS 2) 100.00% 11,786 647 -259 14,531 Store Kongensgade 110 A/S 2) 100.00% 18,707 1,344 34 14,050 Administrationsselskabet Norden A/S 3) 100.00% 6,052 815 -488 12,461 Total 737,722 97,691 -15,204 483,714 Of which attributable to pre-acquisition period -27,930 6,007

Profit of subsidiary undertakings 69,761 -9,197

1) Comp rises seve ral pro p e rties 2) Comp rises one pro p e rty 3) No real activity The registered offices of all subsidiary undertakings are situated in Copenhagen.

A/S Kalkværksgrundene are included in the balance sheet at a 100% ownership share. An amount of DKK 2 million has been provided for compulsory redemption of the remaining shares.

200,000 shares in A/S Kalkværksgrundene have been provided as security. See note 15.

61 N O T E S T O T H E A C C O U N T S

PARENT COMPANY 199 7 199 6 (D K K ’ 0 0 0 ) (D K K ’ 0 0 0 )

Note 4. Financing cost s Financial income: Bonds 1, 2 5 0 2 , 9 6 9 Mortgage deeds, including capital gains 6 , 8 9 8 7, 3 5 0 Financial institutions 2 , 4 0 8 1, 44 8 Subsidiary undertakings 6 , 34 2 4 , 0 37 Dividends 14 3 144 Total financial income 17, 041 15 , 94 8

Financial ex p e n s e s : Interest on mortgage debt 61, 54 2 5 9 , 5 3 9 Subsidiary undertakings 14 , 7 9 9 11, 2 24 Financial institutions 41, 7 5 8 34 , 5 37 Total financial ex p e n s e s 118 , 0 9 9 10 5 , 3 0 0

Total financing cost s - 101, 0 5 8 - 8 9 , 3 5 2

Note 5. Market value adjustment of securi t i e s Realised gains on bonds 19 6 1, 87 9 Realised gains on shares 6 84 18 5 Market value adjustment of bonds 12 2 0 Total ga i n s 1, 0 0 2 2 , 0 64

Realised losses on mortgage deeds 8 2 61 Realised losses on sale of bonds 17 9 0 Total losses 187 2 61

Total market value adjustment of securi t i e s 815 1, 8 0 3

Note 6. Tax on pro fit on ord i n a ry activities Current tax – Parent Company - 3 , 6 8 2 - 1, 0 57 Current tax – subsidiary undertakings 9 ,16 2 1, 0 57 Current tax on profit on ordinary activities 5 , 4 8 0 0 Prior-year adjustment – Parent Company 915 - 2 , 376 Prior-year adjustment – subsidiary undertakings 3 5 2 , 376 Adjustment of deferred taxation – Parent Company - 6 64 0 Total tax on pro fit on ord i n a ry activities 5, 76 6 0

Corporation tax paid during the year 0 0

62 N O T E S T O T H E A C C O U N T S

PARENT COMPANY

Note 7. Properties (DKK ’000) Co m m e rc i a l Res i d e n t i a l Free h o l d properties properties flats

Cost at 1 January 1997 1, 4 0 3 , 76 3 2 21, 8 2 8 2 8 5 , 5 07 Additions on acquisition 19 6 ,14 3 0 319 Additions by renovation 4 2 , 07 5 2 6 ,117 1, 0 9 2 Disposals 0 0 - 15 , 7 3 2 C o st at 31 December 19 97 1, 641, 9 81 247,94 5 271,18 6

Accumulated revaluation at 1 January 1997 116 , 4 8 5 17 5 , 971 9 0 , 017 Revaluation to market value during the year 7,147 2 2 , 7 2 2 0 Reversal of revaluation on sale 0 0 - 4 , 5 87 Reversal of revaluation - 2 , 87 8 - 6 , 24 3 Ac c u m u l a ted revaluation at 31 December 19 97 12 0 , 7 54 19 2 , 4 5 0 8 5 , 4 3 0

Accumulated write-downs at 1 January 1997 121, 3 87 21, 6 07 0 Write-downs to market value during the year 3 , 3 51 8 , 2 6 5 0 Reversal of write-downs on sale 0 0 0 Reversal of write-downs 0 - 2 , 6 5 6 0 Ac c u m u l a ted wri te - d owns at 31 December 19 97 124 , 7 3 8 27, 216 0

Not vacated 3 51,18 2 Portfolio for sale 5 , 4 34

Book value at 31 December 19 97 1, 6 37, 9 97 413 ,17 9 3 5 6 , 616

Book value at 31 December 19 9 6 1, 3 9 8 , 8 61 376 ,19 2 37 5 , 5 24

Cash pro p e rty valuation at 1 January 19 97 1, 3 6 5 , 4 01 413 , 9 5 0 3 57, 6 6 2

199 7 199 6 (D K K ’ 0 0 0 ) (D K K ’ 0 0 0 ) M o rt ga ge deeds re g i ste red to the ow n e r Uncollateralised 134 , 8 3 6 10 2 , 2 0 0 Pledged as security for debt 6 34 , 914 19 0 , 0 0 0 Total issue 76 9 , 7 5 0 2 9 2 , 2 0 0 In addition, security has been provided to owners’ associations for the payment of community expenses. Liabilities for interior maintenance of freehold flats for which no provision is made 6 , 910 6 ,19 5 Liabilities pursuant to Section 18 (b) of the Danish Act on Temporary Regulation of Housing Conditions are capitalised at a total amount of 14 , 8 0 2 9 , 3 84 No provisions are made for other liabilities pursuant to the Danish Act on Temporary Regulation of Housing Conditions.

63 N O T E S T O T H E A C C O U N T S

PARENT COMPANY 199 7 199 6 (D K K ’ 0 0 0 ) (D K K ’ 0 0 0 )

Note 8. Other plant, mach i n e ry, fi x t u res and fi t t i n g s Cost at 1 January 1997 8 , 3 9 6 1, 4 5 5 Additions from subsidiary undertakings 0 4, 67 9 Additions 1, 6 5 0 2 , 2 6 2 Disposals - 2 , 7 0 6 0 C o st at 31 December 19 97 7, 34 0 8 , 3 9 6

Accumulated depreciation at 1 January 1997 4 , 213 2 91 Depreciation on acquisitions from subsidiary undertakings 0 3 , 214 Depreciation during the year 1,14 5 7 0 8 Depreciation on disposals - 2 , 3 8 0 0 Ac c u m u l a ted depreciation at 31 December 19 97 2 , 97 8 4 , 213

Book value at 31 December 19 97 4 , 3 6 2 4 ,18 3

Note 9. Own share s The Company does not hold any own shares as at the balance sheet date. During the financial year, 12,751 shares of DKK 100 each were sold, corresponding to 0.35 per cent of the share capital. The shares were sold at DKK 315 per share in the open market. Book value at 31 December 19 97 0 3 , 6 9 8

M o rt ga ge Note 10. Mort ga ge deeds and bonds (DKK’000) d e e d s B o n d s Cost at 1 January 1997 77, 3 2 3 0 Additions 1, 54 2 6 8 , 6 37 Disposals -7, 9 0 7 - 5 0 ,194 C o st at 31 December 19 97 7 0 , 9 5 8 18 , 44 3

Accumulated revaluation at 1 January 1997 0 0 Revaluation for the year 0 13 5 Reversal of revaluation 0 0 Ac c u m u l a ted revaluation at 31 December 19 97 0 13 5

Accumulated write-downs at 1 January 1997 11, 0 9 9 0 Write-downs for the year 10 8 13 Reversal of write-downs - 1, 5 3 3 0 Ac c u m u l a ted wri te - d owns at 31 December 19 97 9 , 674 13

Book value at 31 December 19 97 61, 2 84 18 , 5 6 5

Book value at 31 December 19 9 6 6 6 , 2 24 0

64 N O T E S T O T H E A C C O U N T S

PARENT COMPANY 199 7 199 6 (D K K ’ 0 0 0 ) (D K K ’ 0 0 0 ) Note 11. Share h o l d e rs’ equ i t y The share capital consists of 5,365,412 shares of DKK 100 each. Movements in shareholders’ equity: Shareholders’ equity at 1 January 1997 1,17 0 , 8 0 9 1,14 0 , 54 8 Net proceeds from rights issue 2 6 3 , 2 24 0 Net proceeds from exchange of shares 17 0 , 3 9 2 0 Write-off of goodwill - 13 , 6 2 0 0 Profit for the year 9 9 , 4 6 5 5 3 , 617 Dividends - 34 , 87 5 - 2 3 , 3 5 6 Shareholders equity at 31 December 1997 1, 6 5 5 , 3 9 5 1,17 0 , 8 0 9

Share Re- Reserve Share premium valuation for own Other Retained (DKK ’000) capital account reserve shares reserves profit Total Balance at 1 Januar 1997 359,320 102,691 239,479 3,698 264,250 201,371 1,170,809 Net proceeds from rights issue 119,773 143,451 263,224 Net proceeds from exchange of shares in A/S Kalkværksgrundene 57,448 112,944 170,392 Write-off of goodwill on a c quisition of shares in A/S Kalkværksgrundene -13,620 -13,620 Sale of own shares -3,698 3,698 0 Reversal of revaluation of freehold flats and properties sold -4,587 4,587 0 Profit for the year 99,465 99,465 Dividends -34,875 -34,875 Value adjustment of properties 11,788 -11,788 0 Transfers -232,427 232,427 0 Balance at 31 December 1997 536,541 359,086 246,680 0 21,901 491,187 1,655,395 The “reserve for net revaluation based on the equity method” is included in “other reserves” in the amount of DKK 21,901,000 (1996: DKK 19,537,000).

Rights E xch a n ge C o st of capital increases (DKK000) i s s u e of share s Financial intermediaries 7, 4 3 5 2 , 813 Printing 1,19 0 3 6 Advertising 4 8 9 17 5 Fees to auditors and lawyers 2 , 247 1,127 Other costs 8 94 9 9 Total costs 12 , 2 5 5 4 , 2 5 0

65 N O T E S T O T H E A C C O U N T S

PARENT COMPANY 199 7 199 6 (D K K ’ 0 0 0 ) (D K K ’ 0 0 0 )

Note 12. Defe rred ta xa t i o n Accumulated provision at 1 January 1997 8 , 616 8 , 616 Adjustment during the year - 6 64 0 Balance at 31 December 19 97 7, 9 5 2 8 , 616

In addition, the Company is subject to a contingent tax liability of DKK 87,828,000 concerning investment properties, which has not been provided in the accounts (1996: DKK 88,166,000).

Note 13. Mort ga ge debt Total book value of mort ga ge debt: Investment properties 718 , 3 5 5 6 5 5 , 5 8 8 Freehold flats for sale 1, 0 01 1, 371 Current portion of mortgage debt 24 , 8 57 2 2 ,19 3 Total mort ga ge debt 744 , 213 67 9 ,15 2 Cash value 7 34 , 5 57 6 5 3 , 7 21 Mortgage debt falling due after five years 5 9 5 , 67 2 5 37, 7 9 3

Note 14. Financial inst i t u t i o n s According to current agreements, long-term debt to financial institutions will fall due in the amounts of DKK 100.3m in 1999, DKK 309.2m in 2001, DKK 128m in 2002, DKK 40m in 2003 and DKK 16.1m in 2004. The average interest rate on these loans is 7.3 per cent p.a. Short-term debt to financial institutions can be increased by an unutilised overdraft facility of DKK 200 million and an ap- proved credit line of DKK 250 million.

Note 15. Contingent liabilities and ch a rged assets Reference is made to note 7 for liabilities relating to properties. The Company has concluded a agreement on the acquisition of additional land at Holmen in Copenhagen. The purchase price amounts to DKK 62 million. Norden has provided security for payment of the purchase price in the form of 200,000 shares in A/S Kalkværksgrundene. The Company has also concluded financial leasing agreements under which DKK 1,100,000 will be payable in 1998 and 1999. The Company is jointly and severally liable with its jointly taxed subsidiary undertakings for tax on the income for which they are taxed on a pooled basis.

66 N O T E S T O T H E A C C O U N T S

PARENT COMPANY 199 7 199 6 (D K K ’ 0 0 0 ) (D K K ’ 0 0 0 )

Note 16. Note to which no refe r ence is made in the accounts Wages and salaries 17, 6 51 15 , 914 Pension contributions 6 5 4 6 17, 716 15 , 9 6 0

Of which: Board of Directors 5 8 5 5 8 5 Board of Management 2 , 4 5 0 2 ,19 5 Average number of employees 5 5 4 9 Of whom real-property staff 2 5 2 2 The Company has no pension commitments etc. to the members of its Board of Directors or its Board of Management.

Fees to audito rs DKK’000 excluding VAT KPMG C. Jespersen 1,37 9 3 84 E rn st & Young Sta t s a u to ri s e ret Re v i s i o n s a k t i e s e l s ka b 9 6 0 47 8 Of which services other than auditing KPMG C. Jespers e n 1, 0 8 9 134 E rn st & Young Sta t s a u to ri s e ret Re v i s i o n s a k t i e s e l s ka b 67 0 2 2 8

67 EJ E N D O M SSE L S K A B E T : N O R D E N

EjendomsSelskabet Norden A/S Toldbodgade 53-55 · DK-1253 Copenhagen K Phone +45 33 69 41 41 · Fax +45 33 69 41 42 · Reg.no. 22.131

L E O

B U R N E T T EjendomsSelskabet Norden 97 Table of Contents Overview Summary 1997 Key ﬁgures Report of the Board of Directors Income Statement Balance Sheet Cash Flow Analysis Notes Shareholders Policy

HUGIN