ANNUAL REPORT 2010 SOLUTIONS FOR LIFE Ramboll is a leading engineering, design and consultancy company founded in Denmark in 1945. Today, we employ close to 9,000 experts and we constantly strive to achieve inspiring and exacting solutions that make a genuine difference to our customers, the end-users and society as a whole. www.ramboll.com
Cover: Illustration used as graphic identity for the Ramboll Urbanisation Event 2010 symbolising cities.
Ramboll Group A/S Danish CVR No. 10160669 City of Copenhagen, Denmark Date of Annual General Meeting: 22 March 2011 ANNUAL REPORT 2010 3
Interview with Group CEO 4
Results Profile 8 Key statistics 9 Directors’ Report 10
Activities Innovating solutions for modern living 18 Nurturing community partnerships 28 Promoting inspirational and longstanding design 36
Financial Status Accounting policies 43 Financial statements 50 Notes 54 Management’s statement on the Annual Report 66 Independent Auditor’s Report 67 Board of Directors 68 Executive Board 69 Group Directors’ Forum 70 4 INTRODUCTION INTERVIEW WITH GROUP CEO
BECOMING A PARTNER TO THE GLOBAL COMMUNITY
2010 marks another year full of inspirational projects and interesting cooperation possibilities. Also, the ever growing and increasingly international market position of our company has been strengthened. With a strong vision of where we are heading, ambitions are high for the future.
CEO Flemming Bligaard Pedersen that have not previously been seen. By can look back on a year with significant working on such projects, our employees accomplishments for Ramboll. We have set new industry standards for future strengthened our customer relations projects, and this benefits our customers, “As a business leader, and partnerships, and throughout the our industry, and society at large.” I see it as my most important job to organisation, our 9,000 engineers and do exactly this – to consultants have worked on several Pursuing ambitions initiate change. large and innovative projects. When asked about this year’s financial To lead a business is result, Flemming Bligaard Pedersen’s reply very different from managing a business. Pioneering solutions for is prompt. Leadership is basically groundbreaking challenges “Everything considered, our year-end about motivating To highlight a few projects, Ramboll was result is satisfactory. As always, the people, and you chosen as the engineering consultant for result is reflective of both external and can’t force anyone to be motivated – the new iconic National Museum of Art, internal influences. The market has proven they have to trust the Architecture and Design in Oslo, Norway. to be more volatile than anticipated, direction in which We were appointed lead design consultant and internally, we continue to strive to you are heading. ” on the redevelopment of Pulkovo Airport strengthen our business,” he says. “Still, the in St. Petersburg, Russia – one of the result shows that we are on the right track.” most ambitious aviation projects currently As with many other companies, the underway in Europe. In the Telecom area, financial crisis caused Ramboll to closely Ramboll signed a new five-year framework examine its strategy and daily operation. agreement to continue cooperation with During difficult times, it becomes clear Chinese giant, Huawei – thereby expanding which adjustments need to be made in the the scope for cooperation in markets in organisation. Flemming Bligaard Pedersen Sub-Saharan Africa. says about the lessons learned during the “Furthermore, our innovative engineering downturn: “We have experienced many design for an immersed tunnel under great results from our efforts in 2010, but Fehmarnbelt became the selected solution,” we are also convinced that more can be Flemming Bligaard Pedersen says. “These done. All change is a process – and time are all spectacular and important projects is needed to allow change to take effect that strengthen our ability to attract and within the organisation. retain the best people to work at Ramboll. As a business leader, I see it as my most These large projects also boost innovation, important job to do exactly this – to initiate as many of them represent challenges change. To lead a business is very different ANNUAL REPORT 2010 5
from managing a business. Leadership is projects is also very much about teamwork. basically about motivating people, and you We should be able to undertake any can’t force anyone to be motivated – they challenge or project – either by bringing have to trust the direction in which you are together experts from within Ramboll heading. So agreement on the direction or drawing on collaboration partners, must remain clear, and therefore we have a and together solve the issues in relation “The biggest strong focus on the full implementation of to the community they are part of.” challenges the world is currently facing our strategy.” – such as climate There is always this grey zone around a Paving the way for smooth operations change, lack of natural strategy and its scope. An important lesson During 2010, focus was on further resources, pollution, is to be really focused and stick very closely enhancing Ramboll’s platform for providing ageing population, urban migration and to the strategy. If too many initiatives are state-of-the-art solutions for all the projects mega cities – are all not fully aligned with the strategy, the we are involved in. global challenges energy is lost and efforts become scattered. “The solutions that we are able to provide that can’t be solved “When difficult times hit, you’ll be to our customers stem from the creativity, locally. This is why Ramboll has to be directly confronted with this. It’s important insight and integrity of the people within able to provide global to back up your ambitions with actions our organisation. To ensure continuous solutions, drawing directly supporting the overall objective. employee development, a global ‘Ramboll on global expertise This does not mean that there is no room Academy’ was launched in 2010. and experience across disciplines and for creativity, but we have to ensure that geographies to solve everything we do supports the overall these challenges.” direction we want to take – it’s about transforming creativity into innovation,” Flemming Bligaard Pedersen explains.
Holistic community consultant The ambition of becoming a partner for the global community remains our most important goal. The key is to have a holistic view on the world and the solutions required. “The biggest challenges the world is currently facing – such as climate change, lack of natural resources, pollution, ageing population, urban migration and mega cities – are all global challenges that can’t be solved locally. This is why Ramboll has to be able to provide global solutions, drawing on global expertise and experience across disciplines and geographies to solve these challenges,” Flemming Bligaard Pedersen says. “However, being a community consultant who claims to hold some of the solutions to the world´s challenges also means seeking to influence the social debate and to share our solutions. We do so by opening our doors for the surrounding community whenever we can, and through participation in debates, events and meetings in the markets where we operate.” On a more operational level, Ramboll’s core competence is to develop and manage projects, and this is an area that can never get too much focus, according to Bligaard Pedersen: “We always need to have the skills required to provide solutions for small or large projects, but working on 6 INTRODUCTION INTERVIEW WITH GROUP CEO
The Academy programme takes “The new Head Office also represents a strategic approach to leadership, a showcase of our capabilities. Several competency and business development. It Ramboll experts have been deeply involved not only professionalises the skills of our with creating a sustainable office building employees, but it develops the attitude exemplifying that it’s possible to create “It’s a natural needed to take Ramboll forward,” says architecturally interesting buildings while consequence of our Flemming Bligaard Pedersen. not compromising the overall sustainability vision and strategy The ability to quickly identify the most and economy.” that our head office – which is also our qualified employees or project lessons Additionally, in several locations around single largest work across Ramboll is crucial for delivering the the world we have upgraded our existing space – is a visionary, best possible solutions to our customers. offices and in Sweden and Norway, we have innovative and This is why a common Knowledge recently moved into new main offices. inspiring building.” Management platform, RamLink, was introduced in the majority of Ramboll’s Future aspirations business units in 2010. The remaining units Ramboll has now managed to comply with will be joining in early 2011. Additionally, the the new market agenda in a reasonable way, development of a common ERP (Enterprise Flemming Bligaard Pedersen concludes. Resource Planning) system to manage time During 2011, the company is expected and resources more efficiently is on its way. to reach the level of profit from before the economic downturn. “This is an ambitious New surroundings as a showcase target,” Flemming Bligaard says. “But for engineering we have come quite a long way already, In 2010, we moved in to a new Head Office and during 2011, we’ll pursue the further in Copenhagen. professionalisation of our business. We’ll “It’s a natural consequence of our vision optimise and improve within all areas; our and strategy that our head office – which functions, systems, projects and cross- is also our single largest work space – is a organisational cooperation.” visionary, innovative and inspiring building. Ramboll also wants to come closer to It is located right in the middle of the fulfilling the strategic ambition of becoming largest intersection in the Nordic region, a global community consultant. “We plan to and we can see various engineering and expand geographically, as well as expand consultancy disciplines just by looking out our holistic expertise. If we want to be able of the window,” Bligaard Pedersen says. to set the global agenda, we have to reach A strong vision for transparency, a certain size in order to have true impact. cooperation and knowledge sharing has We’ll focus on growth in markets where we been the inspiration for the design of the already have a strong presence, but we are new Head Office. Approximately 13,000 also keeping a close eye on new, interesting square metres of glass make up the façade growth markets,” says Bligaard Pedersen. covering the building, and its transparency The executive team and the strategy are signals openness and integration to the ready to go, and with a solid foundation surrounding world – just like all of us ownership structure, Ramboll is in a working inside the building never lose sight good position to expand further while of the community we are part of. maintaining a strong company spirit.
RESULTS PROMOTING OUR HOLISTIC APPROACH 8 RESULTS PROFILE
PROFILE
Ramboll is a leading engineering, Ownership design and consultancy company The Ramboll Foundation is the founded in Denmark in 1945. main owner of Ramboll Group A/S We employ close to 9,000 people and has as its main objective and have a significant presence to promote the company’s in Northern Europe, Russia, India continuance alongside the long- and the Middle East. With almost term development of the company, 200 offices in 20 countries we its employees and the communities emphasise local experience it serves. All shares in Ramboll combined with a global knowledge- Group A/S are owned either by base. the Ramboll Foundation (96%) or by employees in Ramboll (4%). We constantly strive to achieve inspiring and exacting solutions Vision that make a genuine difference Ramboll is committed to helping to our customers, the end-users create inspirational and long- and society as a whole. Ramboll standing solutions that allow operates within the areas of: people and nature to flourish. Buildings & Design, Infrastructure & Transport, Energy & Climate, Environment & Nature, Industry & Oil/Gas, IT & Telecom and Management & Society.
PROFIT BEFORE TAX, DKK MILLION
Profit before tax (left axis) Rolling annual profit before tax (right axis)
150 400
120 320
90 240
60 160
30 80
0 0
2006 Q1 2006 Q2 2006 Q3 2006 Q4 2007 Q1 2007 Q2 2007 Q3 2007 Q42008 Q1 2008 Q2 2008 Q3 2008 Q4 2009 Q1 2009 Q2 2009 Q3 2009 Q42010 Q1 2010 Q2 2010 Q3 2010 Q4 ANNUAL REPORT 2010 9
KEY STATISTICS
Key figures and financial ratios (audited) 2010 2010 2009 2008 2007 2006
Income statement, DKK million EUR m Revenue 815.4 6,074.9 5,510.6 5,639.8 4,739.6 3,945.5 EBITA 52.8 393.7 320.4 439.7 403.2 290.4 Operating profit (EBIT) 39.8 296.7 236.6 357.3 347.4 254.0 Profit before tax 37.0 275.9 212.6 357.7 315.1 244.7 Profit for the year 23.4 174.7 124.7 231.7 218.6 157.3
Balance sheet, DKK million Total assets 485.9 3,619.6 3,077.3 3,115.3 3,010.0 2,102.0 Shareholders’ equity 177.3 1,320.6 1,070.8 918.6 927.9 757.4 Net interest bearing cash/(debt) 25.2 187.4 108.1 -9.5 -43.3 117.6
Cash flow, DKK million Cash flow from operating activities 44.6 332.0 232.7 348.8 301.7 293.3 Investment in tangible assets, net -23.6 -175.7 -45.5 -88.3 -60.4 -59.5 Free cash flow 21.0 156.4 187.2 260.5 241.3 233.8 Acquisitions of companies -10.9 -81.2 -31.8 -121.6 -359.7 -51.7
Employees Number of employees, end of year 8,970 8,758 8,848 6,964 5,346 Number of full time employee equivalents 8,229 8,141 7,758 6,385 4,947
Financial ratios in % Revenue growth 10.2 -2.3 19.0 20.1 12.3 Organic growth 3.1 -0.9 10.0 EBITA margin 6.5 5.8 7.8 8.5 7.4 Operating margin (EBIT margin) 4.9 4.3 6.3 7.3 6.4 Return on invested capital (ROIC) 27.7 25.6 38.1 40.8 35.1 Return on equity (ROE) 14.6 12.5 25.1 25.9 22.8 Cash conversion ratio 94.9 107.6 96.5 90.1 111.6 Equity ratio 36.5 34.8 29.5 30.8 36.5
Non-financial indicators (unaudited)
Average age of employees 39.7 39.2 38.1 40.5 40.5 Average age of management 45.0 44.9 45.8 44.9 47.3 Proportion of management who is female, % 15 17 16 15 12 Public sector revenue, % 41 45 40 38 47 Private sector revenue, % 59 55 60 62 53
The figures in EUR have been translated from DKK using an exchange rate of 7.45. 10 RESULLTS DIRECTORS’ REPORT (AUDITED)
DIRECTORS’ REPORT
In 2010 Ramboll managed diversification of our business to increase the profit before across service areas and regions tax by 30% compared to the and we have succeeded in winning previous year despite the current and completing new ground challenging market situation. breaking projects. All due to the dedicated effort of our employees. Several factors have influenced our improved financial performance: In Ramboll we have also in 2010 We have had the ability to managed to consolidate our successively adapt our operation position as a strong company with to the current market changes, solid profit and cash generation we have benefitted from the and a healthy balance sheet.
RAMBOLL GROUP
GROUP MANAGEMENT
SUPPORT FUNCTIONS Denmark (DK, GL) Norway (NO) Sweden (SE) Finland (FI) United Kingdom (UK, IE) Middle East (UAE, QA) India (IN) Russia (RU) Poland (PL) Estonia (EE) Lithuania (LT) Romania (RO)
BUILDINGS & DESIGN SUPPORT FUNCTIONS
INFRASTRUCTURE & TRANSPORT
ENVIRONMENT & NATURE Germany (DE) South East Asia (TH, ID) ENERGY & CLIMATE Energy
INDUSTRY & OIL/GAS Oil & Gas
Informatics IT & TELECOM Telecom
MANAGEMENT & SOCIETY Management Consulting ANNUAL REPORT 2010 11
PREPARING FOR the new National Museum of Art, Customer satisfaction FURTHER GROWTH Architecture and Design in Oslo. In We wish to maintain a high Denmark, Ramboll was engineering quality level in everything we do The global economic crisis has consultant on three winning and to continuously improve our now entered into a new phase, i.e. proposals for the development of a performance. To strengthen our a debt crisis, causing the public new science city at the University of customer relations and build strong sector to significantly reduce Copenhagen. The newly established local partnerships, we continuously spending. This has a negative Energy Global Practice enjoyed a measure customer satisfaction. impact on our business climate head start and won several new as the slowdown in the public projects in the UK, Denmark, We ask our customers different sector activity leads to fierce price Finland, Sweden and the US. questions such as how they competition. On the other hand, perceive Ramboll’s ability to we are experiencing an increase Finally, the Ramboll-Arup- cooperate and deliver on time. in activities in the private sector. TEC design for an 18 kilometre How well we understand their combined road and railway tunnel needs and how we manage to go Despite the fierce competition in construction has been announced beyond expectations. And, very 2010, we managed to win many by the Danish Minister of Transport importantly, how they perceive the new contracts, which have led to as the preferred solution for a competencies of our consultants. an increase in the order book to Fehmarnbelt link between Denmark We scored highest on our ability DKK 2.8 billion compared to DKK and Germany. The political decision to cooperate. Result: 4.5 (on a 2.4 billion at the end of 2009. in favour of the immersed tunnel scale from 1 to 5), and we received solution is a professional milestone the lowest score on our ability to Towards the end of the year for Ramboll. A significant number go beyond expectations. Result: we experienced new positive of our employees have already 3.7 (on a scale from 1 to 5). signs within Buildings & Design. been involved in the project and This is the very opposite this will continue for years to Our overall customer satisfaction development compared to come. The team has presented was 4.2 in 2010 (on a scale from 1 the situation one year ago. a world class solution which to 5). As 2010 is the first year with sets new international standards a common cross-organisational Throughout our operations, focus for immersed tunnel design. customer satisfaction survey has remained on strengthening system, results cannot be compared our customer relations to secure During 2010 we made thirteen bolt- with those of previous years. the continuous influx of small on acquisitions in the Nordic region. and large orders, the mobility Seven acquisitions were in Norway, Financial development of our workforce and efficiency five in Finland and one in our Oil Revenue increased by 10% from of operations and cooperation & Gas business unit in Denmark. DKK 5,511 million in 2009 to DKK across our units. In order to stay Through these acquisitions we have 6,075 million. The increase of the competitive, we have constantly increased our knowledge base reporting currency DKK against been focusing on cost saving and expertise by adding 165 highly foreign currencies (SEK and NOK measures. One of our initiatives skilled employees to our workforce. in particular), affected the revenue to increase efficiency has been with 5%. At constant exchange to off-shore services to low cost On 1 April 2010, Knut Akselvoll rates revenue increased by 5%. units within Ramboll, whenever took over as Executive Director, possible. At the same time we and the Group Executive Organic growth was 3%, primarily have increased resources spent Board is now fully in place. attributable to positive organic on customer relations and service growth in Scandinavia and delivery, as our future activity In 2010, we embarked on the Russia, and only partly offset depends on giving maximum development of our strategy by negative organic growth priority to these areas. for the next five years. It was a in the UK and Middle East. thorough process that involved As we have been successful in the Board of Directors, the Group Growth from acquisitions was winning several important projects Executive Board, as well as all 2% due to bolt-on acquisitions in 2010, this strategy seems to have Principal Business Units. The result made in 2009 and 2010. paid off. In Russia, Ramboll has been is a concise and ambitious future appointed lead design consultant strategy for profitable growth. Operating profit before goodwill on the complete redevelopment amortisation (EBITA) for the year of Pulkovo Airport, St. Petersburg. was DKK 394 million compared to In Norway, Ramboll is to design DKK 320 million in 2009, 12 RESULTS DIRECTORS’ REPORT (AUDITED)
giving an EBITA margin of 6.5% Profit before tax increased by Infrastructure & Transport (18%) compared to 5.8% in 2009. The 30% to DKK 276 million compared and Buildings & Design (13%). increase in margin compared to to DKK 213 million in 2009. 2009 was primarily due to the The Nordic region accounts for fact that the low performing units Tax on profit increased to DKK 99 more than 85% of the total revenue, of 2009, such as the UK and million (2009: DKK 88 million). with Denmark as the largest single Management Consulting, made The effective tax rate was 27% geographical segment accounting significant improvements in 2010. (2009: 30%) calculated as Tax on for 39% of the total revenue. profit divided by Profit before tax The EBITA margin was kept on a adjusted for Goodwill amortisation Cash management was given satisfactory level in Sweden and and Income from associates. high priority in 2010 and this Denmark and in our international resulted in a healthy cash business units within Energy, Oil & Net profit was DKK 175 million conversion of 95% (2009: 108%). Gas and Management Consulting. compared to DKK 125 million in 2009. The result was satisfactory Cash flow from operating activities On the other hand, the margin taking into consideration the was DKK 332 million. Investments declined in Finland and Norway, difficult market situation. in tangible assets amounted to in our international Telecom DKK 176 million due to significant business unit and in our Danish The split of revenue between investments made in connection business unit within IT services. the private and public sectors with moving into new premises in has moved in the direction of Ørestad (Copenhagen), Oslo and Goodwill amortisation increased decreased revenue from the public Stockholm. Consequently, free cash to DKK 97 million (2009: DKK sector in line with the market flow was DKK 156 million compared 83 million) due to increase of situation. Public sector revenue to DKK 187 million in 2009. the reporting currency DKK represented 41% of total revenue against GBP, SEK and NOK in 2010 (2009: 45%) with private Investments in acquisitions and amortisation of newly sector revenue representing 59%. of companies reached DKK acquired companies. 81 million compared to Buildings & Design is still our DKK 32 million in 2009. Net financial expenses were largest market segment accounting DKK 21 million compared to net for 35% of total revenue, followed At year-end, Ramboll had a financial expenses of DKK 24 by Infrastructure & Transport strong financial position with a million in 2009. The net financial accounting for 25%. The most net interest bearing cash position expenses are primarily related significant growth in 2010 has been of DKK 187 million (2009: DKK to interest rate hedging. within Energy & Climate (19%), 108 million), a committed funding
REVENUE IN SERVICE AREAS 2010 REVENUE IN GEOGRAPHICAL AREAS 2010
Buildings & Design 34.6% (2009: 33.6%) Denmark 39.1% (2009: 41.7%) Infrastructure & Transport 25.3% (2009: 23.7%) Norway 18.7% (2009: 16.3%) Energy & Climate 6.1% (2009: 5.6%) Sweden 17.3% (2009: 16.3%) Environment & Nature 9.4% (2009: 11.3%) Finland 10.4% (2009: 11.3%) Industry & Oil/Gas 10.1% (2009: 10.6%) UK 4.8% (2009: 5.4%) It & Telecom 7.7% (2009: 8.2%) Middle East 3.5% (2009: 3.8%) Management & Society 6.8% (2009: 7.0%) Russia 2.6% (2009: 1.2%) Rest of Europe 1.7% (2009: 2.3%) Rest of World 1.9% (2009: 1.7%) ANNUAL REPORT 2010 13
In line with Ramboll’s fundamentals, we joined the UN Global Compact in January 2007. We report Ramboll’s CSR activities separately under the UN Global Compact in a “Communication on Progress” report. www.unglobalcompact.org/participant/7863-Ramboll-Group and www.ramboll.com/CSRreport2010
facility of DKK 1 billion running Company structure Event’ focussing on the theme until September 2012 and a DKK As consultants we need to of urbanisation was held in 2010. 100 million overdraft facility. be present locally in order to For the event we collected and understand the needs, standards, exhibited diverse examples of The equity ratio was 36% (2009: culture and language of our Ramboll’s urban solutions. These 35%). Shareholders’ equity customers. At the same time are now being further developed increased by DKK 250 million to we must be able to draw on to become an integrated part of DKK 1,321 million. The movements our global specialist knowledge our service portfolio. As part of this in equity comprise net profit of from across the organisation, project, we also hosted a physical DKK 175 million, exchange rate and especially in relation to large Urbanisation Event for around value adjustments, net of tax of and complex projects. To reflect 130 customers and collaboration DKK 101 million and dividends of this way of operating, Ramboll partners. At this occasion, DKK -26 million. has been organised in a matrix keynote speakers and master of Country Business Units, class sessions highlighted how Global Practices, Service Areas cities are being innovative in their and Support Functions. response to global development BOOSTING GLOBAL challenges such as climate change, COOPERATION Knowledge sharing and energy efficiency and economic business development development. Ramboll provides a wide range In 2010 we continued the of services throughout the world implementation of our Group within our Service Areas. We have Knowledge Management an underlying holistic business Strategy. A key initiative was the SHAPING THE FUTURE model governing our business. introduction of a new Knowledge It is based on five central values: Management Platform called Our employees are our core asset. Insight, Integrity, Empathy, RamLink. The RamLink version 1 We employ inspired, innovative, Enjoyment and Empowerment. has been designed as a common passionate and professional people We believe that our value chain platform allowing our employees who together form the backbone goes through thriving and loyal to access and share important of our business. At year-end 2010 employees and customers, through knowledge about people and the headcount was 8,970 which responsibility and care for society projects in Ramboll. Another is an increase of 212 compared and the surrounding environment focus area was to establish and to year-end 2009 (8,758). to profitable and sustainable develop our Group Networks. We development for our company. now have a series of strong cross- Encouraging professional In this way our holistic business organisational networks which and personal growth model serves as a guideline for provide structure and support In Ramboll we have a long tradition everything we do and forms the to our internal cooperation. for developing and training our basis for our Code of Conduct and employees locally, our strategic our business practices in general. Knowledge Event 2010 ambition for international growth To position ourselves as a serious calls for a more coordinated, Ramboll Group A/S is the parent international player, we must be international and aligned approach company of the operation able to deliver specific solutions to running development activities with a 100% shareholding in to the global challenges the – especially within the fields of all the main subsidiaries. world is facing. To enhance our leadership development, project organisation’s ability to meet these management and on-boarding challenges, a virtual ‘Knowledge of new employees. 14 RESULTS DIRECTORS’ REPORT (AUDITED)
EMPLOYEE SURVEY
Response rate, % (left axis) Employee satisfaction and engagement index (right axis)
90 4.2 A record-high number of employees completed the employee survey in 80 4.0 2010. The overall result for Ramboll shows a satisfaction and engagement 70 3.8 index of 3.9 on a 5 point scale.
60 3.6
50 3.4 20062007 2008 2009 2010
To add a global dimension the secondly, to strengthen the 40,000 square metres of office Ramboll Academy has therefore business through continuous space and is the new working been given high priority in 2010, improvement of employee place for 1,600 Ramboll engineers comprising two large programmes engagement, working processes and consultants. The vision for the on leadership and international and management practices. building is to provide a holistic and project management. For the sustainable environment – with first time both programmes have A record-high number of openness, knowledge sharing and gathered participants from all employees completed the ESES cooperation as the focal points. Principal Business Units which has questionnaire in 2010. Not only Advanced engineering has ensured significantly contributed to the was it an all time high response that the new Ramboll Head Office integration and one company spirit. rate (83%), it was also the is geared for future demands The Ramboll Academy training second consecutive year that the regarding energy consumption concept is based on a high degree response rate increased, from and indoor climate. Groundwater of participant involvement and 78% in 2008 and 81% in 2009. cooling and rain water collection a chance to work with real life are two examples of this. challenges and to get peer The overall result for Ramboll shows feedback. In this way we strengthen a satisfaction and engagement During 2010, Ramboll also occupied the ties between our future index of 3.9 on a 5 point scale, a new principal office in Oslo, leaders and project managers. which is a satisfactory result in the just as a new principal office in light of the unfavourable business Stockholm was taken into use in Engaged employees environment faced by many parts 2009 and plans are to move into Each year we carry out an of the company in 2010. During another new principal office in 2011. Employee Satisfaction and the last five years, the overall result This time in Espoo in Finland. Engagement Survey (ESES) in has ranged between 3.7 and 4.0. which all employees in Ramboll Creating value are invited to participate. The New principal offices In Ramboll, our economic value survey serves two closely in the Nordics creation is shared between our interrelated purposes: Firstly, In August 2010 Ramboll moved employees (distributed by way to increase the satisfaction and into a new head office in Ørestad of annual bonuses) and our engagement of employees and, in Copenhagen. It comprises shareholders (distributed by ANNUAL REPORT 2010 15
way of either a dividend or as a of 2010, the employees owned knowledge services acknowledged reinvestment for the company’s 4% of the share capital while and accepted Corporate further development). the remaining 96% was owned Responsibility for many years. by the Ramboll Foundation. Our economic profit of DKK 316 Corporate Social million (2009: DKK 236 million) Responsibility (CSR) was distributed as DKK 108 The purpose of CSR is to million (2009: DKK 105 million) ACTING RESPONSIBLY ensure that social, ethical, and in bonus to our employees and environmental concerns are an the remaining DKK 208 million In Ramboll we believe in a business integrated element of our to the shareholders (2009: DKK behaviour based on trust, integrity overall responsible business 131 million), of which DKK 26 and professionalism. We believe in behaviour. We believe that our million (2009: DKK 26 million) was taking a holistic and responsible focus on CSR is of benefit to distributed to the shareholders approach to everything we are our employees, our stakeholders in the form of dividends. involved in, and we believe in a and the society we are part of as voluntary initiative to promote well as to our business results. In May 2010, Ramboll completed sustainable development and good the 2010 share scheme. All corporate citizenship. Based on the In 2010 specific CSR actions employees with a minimum of strong fundamentals inherited from were taken in relation to People, two years seniority were invited our founders and our commitment Climate and Business Integrity. to buy Ramboll shares. A total of to providing sustainable solutions 424 Ramboll shares were bought to people and society, we have As a first step to increase internal by our employees. At the end as an international provider of awareness of the risk
ECONOMIC VALUE CREATION, DKK MILLION
Net profit, DKK million 2010 2009 Profit before tax 276 213 Employees’ annual bonuses 108 105 Financial expenses 74 70 Net profit 458 387
Invested capital (1 January), DKK million 2010 2009 Net profit Total equity 1,071 919 Required return on invested capital Economic profit (EP) Long term liabilities 285 489 Provisions for deferred tax 83 79 Provisions for pensions 6 51 Dividend -26 -26 Invested capital 1,419 1,512 500
400 Economic profit (EP), DKK million 2010 2009 Required return on invested capital 10% 10% 300 Required return on invested capital 142 151 Economic profit (Net profit - return on capital) 316 236 200
Part of EP used for employees' annual bonuses 108 105 100 Part of EP to shareholders and for company development 208 131
2010 2009 16 RESULTS DIRECTORS’ REPORT (AUDITED)
of discrimination and how participant/7863-Ramboll-Group With world class expertise networks to fight discrimination, our HR and www.ramboll.com and projects, we have a strong employees were trained in non- /CSRreport2010. platform for pursuing our strategy discrimination. In 2010 78% of for growth. Our present portfolio the HR employees participated Subsequent events of unique and significant projects in the training, while our target is With the exception of events is a clear indication of the fact that over time all HR employees described in this Annual Report, that during recent years, we have should undertake the training. Ramboll is not aware of events been able to position ourselves subsequent to 31 December as a significant international Secondly, we have measured our 2010 that are expected to consultancy company which can annual CO2 emission caused by have a material impact on be measured on a global scale. heating, cooling and electricity. Ramboll’s financial position. In 2010 the CO2 emission per employee (FTEE) increased by 5% Executive Board from 0.96 ton in 2009 to 1.01 ton Ramboll’s Group Executive Board in 2010. The aim will be to reduce consists of a Group CEO and the CO2 emission per employee in three other Group Executives, 2011. In 2010 we also introduced each responsible for one of the measurement of CO2 emission three dimensions in our operating related to business transport model: Service Areas/Global and travel. However, due to high Practices, Country Business uncertainty related to the data, we Units and Support Functions. are unable to publish the Group results of the CO2 emission caused Board of Directors by business transport and travel Ramboll’s Group Board of Directors in 2010. We will, however, focus on is composed of professionals improving the data quality in 2011. with a broad mix of experience. At the Annual General Meeting Finally, a Business Integrity in March 2010 Øyvind Isaksen E-learning training course has joined the Board of Directors, been developed. The purpose is to replacing Jon Jacobsen. See increase awareness of our Code of page 68 for a presentation Conduct, how it influences our daily of the Board members. work and what we should do to maintain our high ethical standards Dividend for business behaviour. The target The Group Board of Directors is that all employees must complete proposes a dividend of DKK the E-learning course in 2011. 26,250 thousand, equivalent to the dividend distributed last year. A In 2010 Ramboll in several dividend of DKK 26,250 thousand ways interacted with the local corresponds to 75% of the nominal communities of our business units, share value, 15% of net profit and for instance through cooperation 17% of free cash flow for the year. with institutions of higher education in order to inspire students and to foster the development of innovate longstanding LOOKING TO THE FUTURE solutions and technologies. The overall market situation for According to the exception Ramboll in 2011 is expected to under the Danish Financial be as challenging as in 2010. We Statements Act § 99A, we report do, however, see ourselves as Ramboll’s CSR activities under being prepared for the tough the United Nations Global Compact market conditions and find in a “Communication on Progress” Ramboll in a good position Report. For further information to deal with the challenges. regarding this report, please Consequently, operating profit is check the UN website expected to improve from 2010. www.unglobalcompact.org/ ACTIVITIES UNLOCKING THE URBAN ENVIRONMENT 18 ACTIVITIES INNOVATING SOLUTIONS FOR MODERN LIVING
01 ANNUAL REPORT 2010 19
02
01 The immersed tunnel between Denmark and Germany will make it possible to cross the Fehmarnbelt in less than ten minutes. 02 Links between main North European cities INNOVATING will be significantly improved by the tunnel. 03 The expected SOLUTIONS development in traffic between Rødby FOR MODERN and Puttgarden. LIVING
Cars Lorries Busses Urban living is highly dependent on the availability of utilities such 10000 as water and energy – just as mobility is a prerequisite for any 8000 urban environment and secures the
6000 continuous development of society. We are involved in creating innovative 4000 solutions helping to unlock the urban environment of cities and countries. 2000 These are groundbreaking projects requiring new thinking which is 0 challenging the boundaries of what
1999 2000 2001 2002 2003 2004 2015* 2015** is possible. *Projection 2015 ferry service. **Projection 2015 fixed link. Source: Environmental Consultation Report for a fixed link across the Fehmarnbelt by Federal Ministry of Transport, Building and Urban Affairs, Germany and Ministry of Transport and Energy, Denmark. 03 20 ACTIVITIES INNOVATING SOLUTIONS FOR MODERN LIVING
Follow this project at www.ramboll.com/fehmarntunnel GOTHENBURG
SWEDEN
DENMARK
COPENHAGEN MALMÖ
LÜBECK HAMBURG
BERLIN
GERMANY
01 02 TYING REGIONS CLOSER TOGETHER
Links between main cities in Denmark, Sweden and Germany will be significantly improved as the fixed link under Fehmarnbelt transcends from the drawing board into the 01 The position of Optimising through clever real world. Ramboll heads the joint the Fehmarnbelt design solutions venture with Arup and TEC Tunnel fixed link. The immersed tunnel solution under Engineering Consultants that designed 02 Cross section of a the immersed tunnel solution, which standard tunnel Fehmarnbelt is a study in innovative is supported by Danish Members of element. thinking, as it challenges existing tunnel Parliament as proposed by Femern 03 Visualisation of the building standards. It improves functionality A/S, the state-owned company in tunnel opening on through its pioneering longitudinal charge of planning of the fixed link. the German side. ventilation system and state-of-the-art safety and security features. By car it will take about ten minutes to go through the tunnel and for train passengers the journey will take a mere seven minutes from coast to coast. A lot of thought has been put in to enhancing the driving experience when passing through the tunnel. The tunnel will be experienced as wide and spacious, and special lighting installations will augment user experience. The tunnel will be constructed from 79 standard elements divided into nine segments and ten special elements to be located every 1.8 km. The concept of using special elements for an immersed tunnel is new and has several benefits. All mechanical and electrical equipment requiring space and maintenance will be gathered in these special elements, meaning that the standard elements can be made technically simpler and uniform and, therefore, better suited for mass production. The tunnel elements will be manufactured at large production facilities on land. They are towed to the tunnel alignment where they will be immersed one by one in a pre-dug trench and linked together. When the elements are in place, they will be covered by stone and sand. After a few years, the natural seabed will be completely re-instated. With a length of about 18 km spanning the distance between Rødbyhavn and Puttgarden, it will be the world’s longest combined road-rail tunnel to date. Construction is expected to commence in 2014 and the tunnel is scheduled to open for traffic in 2020. 03 ANNUAL REPORT 2010 21
TELECOMMUNICATIONS AS A WAY TO CLIMB THE DEVELOPMENT LADDER
For people living in remote areas on the African continent, telecommunications has helped them climb the development ladder and get access to modern life. So far, around 1,000 Ramboll towers have been erected in Africa. In 2011, this will continue on an even larger scale with Ramboll as preferred tower partner to Chinese telecom giant Huawei and based on Ramboll’s close relations with Indian telecom operator Bharti Airtel who now is very active in Africa. A new Ramboll project office has been set up in Africa to support this development, and will help facilitate greatly improved communication possibilities for many Africans.
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05 Digitalised railway communication systems The introduction of a common European Rail Traffic Management System (ERTMS) throughout Europe aims at improving the connectivity between European cities and A UNIQUE TOWER DESIGN capitals and allow for seamless travel within the EU. Denmark will be the first country Analysis, design and construction in Europe to upgrade its entire signalling of masts and towers are among Ramboll’s key competences, system to ERTMS at once. Currently, and we are ranked as the global Ramboll is heading the consortium 04 Ramboll is to deliver No. 2 design firm in this field designing and planning the national rollout mobile telecom towers (ENR 2010). We supply our of the new system, which is expected to be to telecom giant Huawei optimised masts and towers in Sub-Saharan Africa. from selected quality production completed in 2021. 05 All existing analogue partners in China, Denmark, As the new ERTMS signalling system uses radio systems on the India, Indonesia, Poland and GSM-R technology for data communication Danish railway network Thailand to customers around between the train and the signal control have to be replaced with a the world. Ramboll’s telecom new digital GSM-R system. towers follow our unique design systems, all existing analogue radio systems concept. The main advantages on the Danish railway network have to be of our design are that it requires replaced with a new digital GSM-R system. much less steel to produce, low As an additional project, Ramboll’s telecom wind resistance means that our towers need smaller foundations, division is to design new towers as well as and we use fewer elements redesign existing towers along Denmark’s than traditionally used. All of long distance railway network, and the this leads to cost-reductions S-train railway network in the Copenhagen for our customers. In addition, our tower design significantly area. This project includes nearly 400 reduces CO2-emissions, which individual sub-projects. is a high priority issue both for us and for our customers. 22 ACTIVITIES INNOVATING SOLUTIONS FOR MODERN LIVING
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Gateway to St. Petersburg redevelopment puts passenger capacity Pulkovo Airport serves as the gateway to at approx. 14 million passengers per year, the city of St. Petersburg. At 4.6 million and holds the potential for increasing that inhabitants, it is the second largest city number to 17 million in the near future (up in Russia. To sustain the city’s economic from 8.4 million passengers in 2010). A growth, the airport has to accommodate an new terminal building and pier are to be 01 Visualisation of increasing number of travellers every year. constructed, while the existing terminal the extension Situated 20km from downtown St. building will be refurbished. Airside and refurbishment of Pulkovo Airport. Petersburg, Pulkovo Airport is currently infrastructure and operational support 02 A view of the ranked as Russia’s fourth largest aviation facilities will undergo a major overhaul, and rollercoaster at gateway after the three major Moscow landside property development includes Ferrari World airports. construction of a new four-star hotel, a Abu Dhabi. 03 Yas Island is an For some years already, Pulkovo Airport business centre, and extensive parking island created for has been close to reaching maximum facilities. leisure, entertainment passenger capacity. In 2008, the City of Ramboll in Russia, UK, and Denmark and lifestyle, and St. Petersburg announced an international contributed to the success of the Pulkovo it is attracting tourists from all over tender for a 30-year concession to develop Airport modernisation project by combining the world. and operate Pulkovo Airport. The tender their expertise within various engineering was won by the consortium Northern disciplines. This was most prominently Capital Gateway (NCG), with Ramboll demonstrated in the areas of master supporting NCG as design consultants planning, environment, operational studies, throughout the whole bidding process. In and structural engineering. By working early 2010, NCG appointed Ramboll as lead in a multi-disciplinary, cross-cultural designer of the project, which is one of the environment, the project team delivered a most ambitious aviation projects currently highly sophisticated design project. underway in Europe. The modernisation project comprises a large-scale redevelopment and expansion of the existing airport. The airport ANNUAL REPORT 2010 23
Visualisation of Pulkovo Airport: 01 Landside property development with a new four-star hotel, a 03 business centre, and extensive parking facilities. 02 The new terminal building and pier. 03 Refurbishment of the existing terminal building. 04 Major overhaul of airside infrastructure and operational support facilities.
02 FERRARI WORLD ABU DHABI Ferrari World Abu Dhabi opened its doors in November 2010. It is owned by Aldar, Abu Dhabi’s leading property development, management and investment company. The iconic sleek red roof, inspired by the classic double curve side profile of the Ferrari GT body, spans 200,000m2, and carries the 04 largest Ferrari logo ever created. The enclosed indoor area accessible to the public is 86,000m2 – large enough to fit seven football fields.
01 03 World’s largest indoor theme park The newly opened Ferrari theme park in Abu Dhabi is the world’s largest indoor park - and the first Ferrari theme park ever. It is situated on Yas Island, an island created for leisure, entertainment and lifestyle, and it is attracting tourists from all over the world. Ferrari World Abu Dhabi is thus part of a transformation process, signifying a move away from the widespread notion of the Middle East as a region focused on oil export to that of a region of tourism and leisure. Large enough to fit seven football fields, the much anticipated theme park delivers an experience that truly lives up to the passion, exhilaration and technical innovation associated with the Ferrari name. The park offers more than 20 Ferrari-inspired rides and attractions, as well as unique shopping experiences. It is an example of a rare case of engineering ingenuity that required Ramboll’s multidisciplinary services and the combined skills of more than 60 engineers from structures, building services, facades, geotechnical, infrastructure and fire. 24 ACTIVITIES INNOVATING SOLUTIONS FOR MODERN LIVING
01 Bella Hotel leans at a gravity-defying 15 degree angle. 02 In the Greater Copenhagen area, Ramboll provided consultancy services for Denmark’s largest wastewater centre. 03 Our engineers used the advanced 3D model for their calculations and drawings when estimating the structural potential of the complex Bella Hotel design. 01 Copenhagen’s new leaning, twisting and turning landmark Leaning at a gravity-defying 15 degree angle, newly constructed Bella Sky Comwell Hotel in Copenhagen’s Ørestad offers a “The model we developed for sight never seen before: Two towers leaning Denmark’s largest wastewater in opposite directions at an angle almost four times that of the leaning tower of Pisa. centre is the most advanced in The geometrical dare continues as the top the market for sewer systems and nine floors of tower one and the bottom wastewater purification plants.” nine floors of tower two both twist an additional 19 degrees horizontally. Christian Nyerup Nielsen, Project Manager, Ramboll Ramboll worked as consulting engineers on structures, sewers and earthworks for the project, and our advanced 3D model has served as a source of the calculations and drawings that have made the complex design possible. The result is a building that challenges the eye and every sense of logic as it leans, twists and turns in relation to its surroundings. The close to 80 meter tall hotel with its 814 rooms and a 44,173 m2 building area will upon completion during 2011 become the biggest hotel in the Nordic region.
New ways of dealing with wastewater Overflowing sewage water is one of the major climate change challenges threathening to pollute drinking water and urban environments. Ramboll was called in to provide consultancy services for Denmark’s largest wastewater centre in the Greater Copenhagen area, Lynettefællesskabet, in the realm of their Intelligent Wastewater Handling project aiming to develop, coordinate and control the area’s integrated system of sewers, pumping stations, retention reservoirs and treatment plants. Ramboll’s contribution was a comprehensive model for run-off and biological treatment that by its scale and complexity is unique.
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03 26 ACTIVITIES INNOVATING SOLUTIONS FOR MODERN LIVING
LARGE SCALE SOLAR HEATING
Large scale solar heating facilities, where water is heated centrally by solar heating panels, represent great potential and are the most cost- effective aw y to use solar energy. In line with the growing popularity of large scale wind energy production, large scale solar heating is becoming equally feasible. It is a competitive solution – even without subsidies – in district heating systems and for industrial hot water process energy.
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Learn more about our energy solutions at www.ramboll.com/energy
01 For years Marstal Longterm supply of urban energy District Heating Cities rely on energy in order to function, has been the and climate change and conservation worlds’ largest solar heating facility. of energy supplies have driven the need 02 Ramboll provides for creative and sustainable energy consultancy for solutions. As building density increases a new waste-to- the distribution of energy from efficient energy facility for Amagerforbrænding. renewable sources though district heating The new facility is networks becomes increasingly viable. designed as an artificial ski slope. Waste-to-energy Illustrations: BIG. District heating may be produced at waste- to-energy and waste incineration plants - in this way utilising our waste. These 02 facilities recover up to 98% of the energy contained in the waste to produce heat and power. The energy produced from waste typically substitutes energy produced at coal-fired power plants. In this way, CO2 emissions are reduced, and emissions of the greenhouse gas methane from waste disposed of at landfills are avoided.
Geothermal heating The world’s biggest potential for renewable energy for heating is geothermal hot water, typically warmer than 70°C. It may be found in underground geological formations to a depth of two kilometres. This resource can be used on a large scale, directly or boosted by a heat pump.
Offshore wind farms Worldwide, the most competitive renewable energy source for electricity generation is large wind energy turbines, if situated with respect to the environment and the wind energy resource. However, the potential for onshore wind turbines is limited and therefore offshore wind farms often are the preferred solution. Excess electricity from the fluctuating wind may be used to generate and store thermal energy in urban district energy systems. ANNUAL REPORT 2010 27
03 04 TAKING PART IN DESIGNING Servicing the oil and gas industry THE WORLD’S LARGEST in a safe, responsible and sustainable way BIOMASS POWER UNIT Despite big leaps forward in the For Foster Wheeler, Ramboll is development of alternative energy sources, designing automation, electrification we are still heavily reliant on oil and gas. and instrumentation for the world’s Fossil fuels will continue to make up the largest power plant fired entirely by biomass fuel. The new CFB (Circulating majority of the world’s energy supply over Fluidized Bed) Green Unit will be built the next 40-50 years. As global energy and located in Polaniec, Poland. Poland consumption continues to grow, and many is committed to produce at the least nations struggle to boost their domestic 15% of the country’s electricity from renewable sources by 2020. The unit, supplies, oil and gas exploration and with a production capacity of 190 MW, production activities will continue to play an will burn wood and agri-fuels. It is important role for many years to come. estimated to reduce CO2 emission A great deal of Ramboll’s projects in the by 1.2 million tons per year. Arabian Gulf and the North Sea reflect this fact. New discoveries are being made and 03 Oil and gas operators are investing in new production exploration and production facilities in unexplored fields. Here, we activities will contribute by providing feasibility studies continue to play including e.g. concept design weight and an important role cost estimates, environmental studies, risk for years to come. Image: Courtesy of and safety studies, economic studies and DONG Energy. authority management. 04 The new biomass Ramboll also participates in a series power unit in of projects extending the lifetime and Poland is estimated to increasing the capacity of mature fields. reduce CO2 Enhanced recovery methods have enabled us emission by 1.2 to extend the lifetime of aging platforms, and million tons per year. recent projects comprise e.g. maintenance 05 Ramboll will provide the design planning, upgrades of produced water of substructures facilities and modifications to the loading for 96 3MW wind systems as well as tie-in of new facilities to turbines for neighbouring fields. Sandbank Power GmbH. Our trademark is to integrate HSE in Image: Courtesy of every aspect of our projects, from early- DONG Energy. phase studies through the implementation of standards to auditing and follow-up. Our approach to sustainability is multidisciplinary and integrated in all of our services. We base our services on integrity, deep specialist insight and absolute independence of third- party providers. In this way we contribute to the safe, responsible and sustainable development within the oil and gas sector. 05 28 ACTIVITIES NURTURING COMMUNITY PARTNERSHIPS
01 ANNUAL REPORT 2010 29
01 Visualisation of the new Panum Complex building. Illustration: Architect C. F. Møller/MIR.
NURTURING COMMUNITY PARTNERSHIPS
Interactions between and within communities is key to creating liveable cities. It’s all about engaging with the community you are part of. The holistic approach we take to our projects makes it a natural thing to closely cooperate with customers, partners, end-users and specialists to always reach the optimal solutions.
Knowledge environment for international standards To become a vibrant hotspot for natural sciences is the ambitious development plan for the University of Copenhagen’s Northern Campus area. During 2010, three international idea competitions were launched to find the advisors with the best proposals for the new science district. Ramboll succeeded in developing the winning formula for all three competitions. “The proposal for the first project, the Niels Bohr Science Park, benefited from the close cooperation in the consultancy team. We worked together in an atmosphere of confidence and mutual respect, which made it possible to challenge and inspire each other across disciplines and companies. It was collaboration in the true sense of the word, resulting in the creation of a winning formula out of chaos,” says Bjarke Curtz Jansen, team captain of the winning team behind the suggestion for the Niels Bohr Science Park. This collaboration concept was used in the following project proposals, and in the end led to the suggestion for the new Panum Institute being named by the jury as “the most convincing and supreme suggestion for an extension in the competition”. 30 ACTIVITIES NURTURING COMMUNITY PARTNERSHIPS
01 Around 30,000 students and employees are associated with the science institutions at Science City North. 02 The extension of the Panum Institute is to form a distinctive part of Copenhagen’s urban landscape and skyline. Illustration: Architect C. F. Møller/MIR. 03 The team designed 01 a characteristic, transparent façade for the new Niels Bohr Science Park.
“All of us interested in place making, either the people who build, the architects, the planners, the civil engineers, right through to the community and social groups, all of those are involved in creating places in their own way. All of those disciplines, all those cultures, and all those ways of thinking need to start blending together much more.”
Neil McInroy, Chief Executive, Centre for Local Economic Strategies (CLES). Watch the full interview at www.ramboll.com/neilmcinroy
The Niels Bohr Science Park The new 45,000m2 Niels Bohr Science Park is to consist of two separate buildings on either side of one of the busiest roads into the centre of Copenhagen. To provide an all encompassing proposal for the design of the building and its surroundings, Ramboll experts teamed up with subconsultants from Vilhelm Lauritzen, Christensen & Co, GHB Landskabsarkitekter and Collin Gordon and Associates. The team designed a characteristic, transparent façade for the two buildings which visually links the building complex. Inside the building, six large ‘troposphere’ atriums between each research unit create a space for interaction and vibrant activity, while they also let in daylight and integrate the green surroundings into the building. A passage under the busy road, Jagtvej, with recreational areas on either side comfortably connects the two buildings. Issues such as sustainability and flexibility of the building were highly prioritised by the University, and by taking these requirements into consideration while preparing the design, both were successfully met.
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Campus North development Panum Complex SCIENCE DISTRICT Tying together the various faculties, The 34,000 square metre extension of AT CAMPUS NORTH research facilities and laboratories as well the Panum Complex is to function as a Science City North as improving integration with the city and landmark for international healthcare covers a 418 acre businesses in the area is the aim for the research, forming a distinctive part of urban area in the heart of the Danish capital development of the Campus North area. Copenhagen’s’ urban landscape and Copenhagen. Today, Ramboll assisted the winning proposal skyline. The vision is to present a creative approximately 55,000 from COBE architects with comprehensive and sustainable architectural solution that people live in the area. services within infrastructure, environment, interacts with the existing buildings and the 25-30,000 students and employees are sustainability and buildings. rest of the city and campus area. associated with the The result was a basic design concept The winning proposal for this project science institutions for creating a comprehensive network of was developed by C.F. Møller Architects, in the area. The bicycle paths between already existing Ramboll and SLA as well as sub-consultants Faculties of Science, Health Sciences small and large recreational areas, rather from aggebo&henriksen, Gordon and Pharmaceutical than creating new recreational areas. Farquharson, Cenergia and Innovation Lab. Sciences will be using So-called knowledge hot spots such The design consists of four low buildings, the new laboratory as cafés and exhibition areas were also together forming the shape of a star and facilities in the extension of the suggested to improve the integration visually appearing as the foundation of a Panum Institute. The with the local community and ensure 16 storey high rise building. The building Faculty of Science and collaboration. In addition to COBE and reflects its surroundings by way of its the Departments of Ramboll, the project team consisted shape and the colours and materials used. Chemistry, Computer Science, Mathematical of DS Landscape Architects, Asplan The layout of the building is flexible, and Sciences and Physics Viak Engineer, Architect Kerstin takes into account that the functions of (the Niels Bohr Höger and Copenhagen Capacity. various rooms may be changed over time. Institute) will get new research and education facilities at the new Niels Bohr Science Park. 32 ACTIVITIES NURTURING COMMUNITY PARTNERSHIPS
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INSPIRING BUILDINGS WITH MINIMISED MATERIAL AND ENERGY CONSUMPTION
In the construction industry, Building Information Modelling (BIM) has proven to be invaluable. With BIM, the structure is visualised before it is constructed, causing dimensions to be tailored, clashing installations to be detected Rethinking urban areas and information to be managed and shared The Southwark area on the east bank of by the different stakeholders. In Norway, John the River Thames in the heart of London Matland from Ramboll is currently heading the development of a national standard for BIM to was a deserted industrial area no more ensure the full benefits of the synergies created than two decades ago. The transformation among architects, engineers, contractors, project of the area into a cultural hub was kicked owners and future users. off by Tate Modern transforming a former power station into a national gallery of international modern art. The Southwark area now houses some of London’s top attractions, creative hotspots, scenic villages and acclaimed green spaces. Ramboll has been involved in several of the projects that are part of the extensive renovation of the area, the largest being the extension of Tate Modern. An extension that is more than doubling the current exhibition space of the gallery - and makes it one of the largest cultural buildings in Europe. As with many other urban locations, building in an area such as Southwark presents challenges in the form of already existing structures or remains from ancient buildings that have to be taken into account. When planning to replace two 1960 office blocks at Bankside - a site right next to Tate Modern - it was discovered that the area was congested with hundreds of mini-piles, obstructing foundations for the new development. Due to our recognised expertise within geotechnical engineering in urban areas, we were approached by the customer to suggest a solution. We developed a foundation design consisting of 56m deep mono piles, up to 2.4m in diameter, minimising the need for removing the existing piles. This design was later refined in close collaboration with the contractor to ensure that it could be constructed safely in central London. In this way, Ramboll’s design expertise in conjunction with the contractor’s practical experience made this a successful project. 03 ANNUAL REPORT 2010 33
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New National Museum of Art, 01 Ramboll developed Architecture and Design a unique foundation design for new Every capital around the world has its buildings at own distinctive attractions and national Bankside in London. symbols such as a Parliamentary building, 02 By using Building a university and museums. In Oslo, the Information Modelling buildings are Norwegian national planning authority, visualised before Statsbygg, is currently planning for the they are constructed. very first time to gather the nations’ most 03 The Southwark area extensive collections of art, architecture in the heart of 05 London has been and design in one central location. The size, CREATING DESIRABLE URBAN SPACES transformed in to location and combined functionality of the a cultural hot spot. In most urban areas, making room for new building will create a totally unique 04 A team of experts the ever increasing number of people arena for art and for the public. from across moving into the city is a great challenge. Ramboll are to The new National Museum of Art, You have to ensure that the city retains provide engineering attractive green areas and squares Architecture and Design will be one of the consultancy for the for people to use while increasing the largest cultural buildings in the Oslo area. A new National Museum density and infrastructure in the city. team of experts from across Ramboll with of Art, Architecture An efficient method for achieving the and Design in Oslo. experience from other cultural buildings correct balance when planning urban 05 In Trondheim in renewal projects is to include the such as Tate Modern, the opera houses in Norway, Ramboll is people living in the area in the process. Denmark and Norway, The British Museum designing a process In Trondheim, Norway – an urban area and Royal Festival Hall in London were for negotiations with close to 200,000 inhabitants about the future chosen as engineering consultants to turn – we are developing a method for development of the including the property owners in the the winning design into reality within the city centre. area in the further development of areas of buildings, geotechnics, electrical the city centre. Ramboll has designed engineering, mechanical engineering, fire a process for negotiations about the and acoustics. Also, our leading Building future development of the area. Information Modelling expertise made us the preferred engineering partner. 34 ACTIVITIES NURTURING COMMUNITY PARTNERSHIPS
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MAJOR POLLUTION ABATEMENT IN ALGERIA 01 Ramboll carries out a major programme for pollution abatement The Algerian Ministry of Environment has of the River Chlef in Algeria. launched a major programme for pollution 02 Kærgård Plantage is probably abatement of the River Chlef. The 800 km long one of the most complex polluted Chlef is the country’s most important river. waste sites in the world. Around four million people live along the river 03 A targeted approach to improving banks, which also accommodate a large number the quality of drinking water in of heavily polluting industries. Ramboll is to the Greater Copenhagen area identify the 200 worst polluters by studying has proven very successful. existing data, conducting interviews and carrying out flow measurements and analysing water samples. On the basis of these analyses, we are to design sewage networks, local treatment plants for treating wastewater containing heavy metals and other harmful impurities as well as ten large, Pollution waste site with vast complexity central wastewater treatment plants. The treated water will, where ever possible, be reused for For several years, Kærgård Plantage in agricultural irrigation, or returned to the river. the western part of Denmark was a tip Recirculation measures to save water will also be into which waste products from the proposed. We are cooperating with long-term pharmaceutical industry were dumped, partner Hidrokomplex and local expertise, and during the project period, we will be making resulting in a toxic cocktail of contaminants several study trips to Sweden to illustrate how leaking into the ocean and polluting the similar difficulties are dealt with. ground water. Ramboll is responsible for coordinating efforts within the international consortium testing various clean-up GROUNDWATER CONTAMINATION (CHLORINATED DISSOLVENTS) techniques to alleviate the pollution. An IN THE GREATER COPENHAGEN AREA initial trial utilising remediation technology will be completed in 2011. This trial data will be used to construct full-scale remedial systems. The project is carried out for The Region of Southern Denmark and The Danish EPA.
Protecting the resources that flow beneath our feet A steady and sustainable supply of drinking water which costs less - that was the aspiration 15 years ago when seven municipalities in the Greater Copenhagen area joined forces with Ramboll to map out groundwater resources, assess and model contamination risks, and determine actions for sustainable abstraction of groundwater for drinking purposes. The work resulted in a strategy to keep the four million m3 of groundwater pollution-free and the concerted effort has not only led to a vastly improved water quality, but has
also resulted in authorities, companies and High risk of groundwater pollution Abstraction well citizens becoming increasingly aware of Waterworks the environment and resources that flow beneath our feet. 03 ANNUAL REPORT 2010 35
CITY PLANNING INVOLVING CITIZENS
The participation of local citizens in development planning often improves conditions for the people living in the area – and in this way adds value to the area and makes it more desirable to live in. When citizens are invited to participate, they become partners and feel a sense of ownership. They will be less reluctant and more likely to support and promote new initiatives. In cooperation with the Danish Ministry of Social Affairs, Ramboll has developed a concept for citizen involvement in urban development and renewal projects – particularly in areas with marginalised people. The initiative takes a resource-based approach to the process and creates value for citizens and urban planners alike.
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04 The contributions by local citizens often make
05 development plans better. “Our administrative 05 Ways of optimising processes in CARE-system is absolutely care work are crucial for ensuring quality and highly in demand. 06 Ramboll is coherence across departments responsible for the development and areas of expertise – for and maintenance of the administrative IT all parties involved. This is systems of the where we can closely monitor Danish IT Centre for Education and the citizen and work on Research, UNI-C. improving our efforts to make the process more efficient while restoring some degree Improving quality of life of independence to them.” through health care IT Louise Thule Christensen, Project Manager In communities around the world the ever at Fredericia Municipality increasing number of people in need of care combined with decreasing financial and human resources represent a huge challenge. Ways of optimising the processes for providing care for both the elderly and the sick are highly in demand. In close cooperation with citizens and partners from hospitals, home care units and municipalities, Ramboll has developed a complete IT product suite for care and health services. The latest part in this portfolio is the CARE@Home module which enables people to communicate, receive assistance and to recover from illness in their own homes. Ipads are placed with the citizens, enabling them to be in close dialogue with health care professionals from a distance. Further, citizens are able to perform and report health measurements themselves, and they are able to access data regarding their care at all times. Data is stored in a central system and can easily be accessed by all parties involved. In this way, it helps to set the minds at rest of the people depending on the system while also allowing for a better quality of life. 06 36 ACTIVITIES PROMOTING INSPIRATIONAL AND LONGSTANDING DESIGN
“One of the things that is preventing sustainability from really advancing is this general idea that sustainability is all about how much of our existing quality of life we are prepared to sacrifice to afford PROMOTING becoming sustainable. It’s all INSPIRATIONAL about the classic protestant idea that things have to AND LONGSTANDING hurt in order to do good.”
Bjarke Ingels, Architect, BIG. Watch the full DESIGN interview at www.ramboll.com/bjarkeingels
Creating sustainable design without compromising aesthetics and functionality requires creative thinking. By means of innovation and extensive experience we help create solutions that adapt to the environment. We take a facts-based approach to sustainability and base our proposals on making the most of the given conditions.
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A transparent Town Hall in Tallinn The city authorities have set very strict The new town hall and public plaza in energy consumption targets for the Tallinn, the beautifully preserved capital of building. The Ramboll design team was Estonia, are to be placed right between the asked to ensure that the building meets medieval city walls and the open waters passive house levels of energy performance 01 The design of the of the Gulf of Finland. After winning an – a real challenge when the design of the new Tallinn Town international design competition, BIG building has substantial amounts of glazing. Hall reflects Tallinn’s architectural architects approached Ramboll to provide To help achieve the required annual and civic history. the complete engineering services. energy consumption target, we have 02 After winning The design of the building is based on introduced features such as double an international the idea of two-way transparency, which is skin façades and automatic roller blind design competition, BIG architects a prerequisite for participatory democracy. systems to reduce cooling demands. Water approached Panoramic windows allow the citizens to see evaporation is used for cooling and the Ramboll to provide their city at work, and the public servants natural low ambient temperatures of Tallinn the complete will be able to look out on their city and its during summer are used to condition engineering services. citizens. the building. By eliminating refrigeration Illustration: BIG. The town hall consists of a series of energy, this enables our design to focus boxes appearing to float above the ground. further on enhancing the thermal insulation Underneath the buildings there is a public and achieving low heating demand. recreational area for citizens to use. The As lighting typically accounts for the southernmost box is much taller than the majority of the energy consumption in rest and echoes the form of the classic office environments, an intelligent lighting gothic town hall spire, thus reflecting control system linked to an automatic Tallinn’s architectural and civic history. blind system and daylight control enables Using industry leading computer modeling significant reductions in energy usage. techniques, we have been able to efficiently and economically model the structure in Learn more about Tallinn Town Hall at close collaboration with the architects. www.ramboll.com/tallinntownhall ANNUAL REPORT 2010 37
02 38 ACTIVITIES PROMOTING INSPIRATIONAL AND LONGSTANDING DESIGN
DESIGNING SUSTAINABLE BUILDINGS
Sustainability has become a global and competitive necessity. To make it easier to evaluate sustainability considerations early in the design process, Ramboll has developed a unique tool called RamSuB. This tool turns sustainability into measurable results and visualises the degree of sustainability achieved in a given project. RamSuB is based on a scoring system in which each project is awarded credits according to four overall areas of sustainability: economic, environmental, climatic and social. The tool features a unique Sustainable considerations: context-sensitive calculator, which takes Economic into consideration all issues regarding Social the specific context of the project Environmental being evaluated, such as energy and 01 Climatic water supply conditions at the site.
“With our suggestion for a future city Strømsø as a future-oriented city district, we have focused on all aspects For several decades, the Municipality of Drammen in Norway has taken a of sustainability. We have focused on targeted approach to improving its urban urban development which does not lead environment. As a part of this initiative, to gentrification, with the goal to enable an idea competition for the development of the Strømsø district was launched. The the present inhabitants and immigrants aim was to get creative input for how the to stay in the area. This ensures that the area may be turned into a future-oriented city district remains an interesting, diverse and human friendly city environment with reduced demands for transport and minimal place with a variety of opportunities.” emissions of climate gasses. Ramboll engineers and DRMA Architects Rune Tøndell, Project Manager, Ramboll submitted the proposal ‘Norway in the future’ which was awarded second place in the competition. The jury praised the enthusiasm and diversity of the project, and recommended that elements from the proposal be applied in the further development of the area. The proposal is a vision for the sustainable city of the future, based on both technical solutions and the social aspects of a modern way of life. The main idea is to turn Strømsø into a dense and vibrant city. The aim is to organise facilities such as shopping, work places, schools and care facilities in a central part of the city, thus reducing the need for car transportation. The goal is to double the building density and work places while the CO2 emissions should be reduced by 50% in 2020. To achieve this, existing buildings are to be upgraded to low-energy standards, roads are gradually to be turned into pedestrian areas and bicycle tracks, access to public transport is to be improved, heating will be provided from a central heating plant, and mixed-use buildings for shops, offices and leisure are to be built. The social life aspects were also highly valued in the proposal; a bazaar and shared shops where citizens can meet and trade their own goods were suggested. 02 UAL REPORT 2010 39
SAMSUNG GREEN BUILDING MATERIAL RESEARCH
There is an increasing focus on constructing sustainable buildings around the world. Samsung C&T have asked Ramboll to conduct a green building market research project for the Middle East, Singapore, China and India region. We will provide a green building guideline and strategy from the contractor’s perspective. In addition, we will conduct research of suppliers of green building materials on the international market and analyse the cost implications of building with green materials.
03
04
01 RamSuB presentation of the degree of 68% sustainability achieved in a 63% given project. 02 Ramboll’s vision for Strømsø as the sustainable city of 64% 67% the future. Illustration: MIR. 03 Samsung C&T have asked Ramboll to conduct a green 60% building market research project. 67% 54% 04 The main idea is to turn Strømsø into a dense and vibrant city. Illustration: MIR. 05 Ramboll’s vision for The percentage of Strømsø is to reduction in CO2 emissions 67% double the building upon completion of the density and work development project when places while the CO2 using high environmental emissions should be standards compared to reduced by current building standards. 50% in 2020.
05 40 ACTIVITIES PROMOTING INSPIRATIONAL AND LONGSTANDING DESIGN
VERTICAL GARDENS
Green roofs or green façades can reduce storm water runoff, improve air quality, mitigate urban heat, reduce the demand for air conditioning and greenhouse gas emissions, and provide a habitat for birds and wildlife. For the European Environmental Agency (EEA), innovative Ramboll engineers developed a clever system for mounting a 25x25m art installation consisting of 5,000 flowers on the façade of EEA’s main office in a central location in Copenhagen. Even though this installation was for a temporary event, the technology developed may be used for a more permanent introduction of greenery in urban areas in future.
01 01 01 Green roofs or green façades have positive effects on the environment in urban areas. 02 Illustration of how storm water is slowed down at the Nya Krokslätt site. 03 In the new Copenhagen district, Ørestad, Creating livable urban spaces surface canals have been designed to The ‘Nya Krokslätt’ area in Sweden is a collect rainwater former factory site to be transformed and add recreational into an international role model for the value. sustainable way of life. As the site is situated between a mountain and a stream, ways to slow down and lead storm water are needed. Ramboll is developing a concept with simple and efficient methods such as 02 vegetation combined with ponds, streams and soak away pits as well as glazed green-blue climate zones surrounding the buildings. This concept provides a multi- functional, rich urban environment for the benefit of future citizens in the area. The growth in the frequency and severity of extreme rainfall has significantly increased the risk of flooding from rivers and urban drainage systems of insufficient capacity. It is a huge investment to dig into the earth and expand the sewer systems in urban areas, so other measures may prove to be better and cheaper alternatives. In fact, water from heavy rainfall may be dealt with in ways which will also have a great effect on the quality of urban life. In the Copenhagen area, Ramboll has carried out a complete overall flood risk calculation including an assessment of damages and the cost of adaptation measures. Based on these calculations, an adaptation plan where sustainable drainage and traditional sewer constructions are combined in the optimum way is developed. For instance, when the new Copenhagen district, Ørestad, was planned, alternative measures for handling rainwater were taken into account. Surface canals have been constructed to collect rainwater from roofs, and also rainwater from roads is treated locally before it is let into the canals. 03 ANNUAL REPORT 2010 41
FINANCIAL STATUS REVENUE UP 10% CASH CONVERSION 95% EBITA MARGIN 6.5% 42 FINANCIAL STATUS ACCOUNTING POLICIES (AUDITED)
NEW RAMBOLL HEAD OFFICE
In August 2010, Ramboll moved into a new head office in Copenhagen designed by architects DISSING+WEITLING. The vision for the building is to provide a holistic and sustainable role model environment – with openness, knowledge sharing and cooperation as the focal points. The overall idea that ties together external functions such as the foyer, auditorium, lunch area and café was inspired by la Rambla in Barcelona. La Rambla is the world famous shopping street which is the lifeblood of the entire city, buzzing with cafés, shoppers, artists, inhabitants and tourists. In the same way, it is the architects’ idea that the ground floor will be Ramboll’s Rambla. All the external functions are connected here and in this way creating activity and a vibrant setting. (AUDITED) ANNUAL REPORT 2010 43
ACCOUNTING POLICIES
BASIS OF PREPARATION
The Annual Report of Ramboll and entities in which the Parent Foreign currency transactions Group A/S is prepared in Company has control, i.e. the are translated into DKK using accordance with the provisions power to govern the financial the exchange rates prevailing applicable to large enterprises and operating policies generally at the dates of the transactions. in accounting class C under the accompanying a shareholding of Foreign exchange gains and losses Danish Financial Statements Act. more than half of the voting rights. resulting from the settlement of Subsidiaries are fully consolidated such transactions and from the The Annual Report has been from the date on which control is translation at year-end exchange prepared under the same transferred to Ramboll Group A/S. rates of monetary assets and accounting policies as last year. liabilities denominated in foreign The cost of an acquisition is currencies are recognised in Ramboll Group A/S has chosen measured as the fair value of the financial income and expenses to deviate from the form assets given, equity instruments in the income statement. requirements of the Danish issued and liabilities incurred or Financial Statements Act relating assumed at the date of exchange Intercompany loans, which to the income statement. Income plus costs directly attributable to are part of a net investment in from associated companies and the acquisition. Identifiable assets subsidiaries, are not considered joint ventures is presented as part acquired and liabilities assumed to be monetary items, but are of EBITA in order to provide a fair in a business combination are considered as equity investments. view of the Group’s operations. measured initially at their fair The monetary fluctuations are values at the acquisition date, recognised directly through equity. Recognition and measurement irrespective of the extent of any On initial recognition, assets minority interest. The excess of The results and financial position of and liabilities are measured the cost of acquisition over the foreign subsidiaries and associates at cost. Subsequently, assets fair value of Ramboll Group A/S’ with a functional currency different and liabilities are measured as share of the identifiable net assets from the presentation currency of described for each individual item acquired is recorded as goodwill. the Group are translated into the below. Certain financial assets presentation currency as follows: and liabilities are recognised at If an investment includes deferred amortised cost. Amortised cost consideration, this is recognised ĆŘ .. /.Ř ) Ř'$ $'$/$ .Ř!*-Ř #ŘŘ Ř is stated as original cost less any at cost at the time of investment balance sheet item presented principal payments plus or minus and subsequently measured at are translated at the closing rate the cumulative amortisation of amortised cost in subsequent at the date of the balance sheet, any difference between cost periods. Changes in deferred ĆŘ $) *( Ř ) Ř 3+ ). .Ř - ŘŘ Ř and the nominal amount. In this consideration are reflected translated at the dates of the way, capital losses and gains in the value of goodwill. transactions (or approximate are amortised over the maturity. average rates), and Recognition and measurement Intercompany transactions, ĆŘ ''Ř 3 # )" Ř $ð - ) .Ř -$.$)"ŘŘŘ take into consideration anticipated balances, realised and from the difference between losses and risks that arise before unrealised gains and losses on closing and average rates and the time of presentation of the transactions between Group between opening and closing Annual Report and which confirm companies are eliminated. rates are recognised as a or invalidate affairs and conditions separate component of equity. existing at the balance sheet date. Presentation currency and foreign currency translation On consolidation, exchange Basis of consolidation The financial statements for the differences arising from the The Consolidated Financial Group and the Parent Company translation of the net investment Statements comprise the Parent are presented in DKK thousands. in foreign entities, and of Company, Ramboll Group A/S, borrowings and other currency 44 FINANCIAL STATUS ACCOUNTING POLICIES (AUDITED)
instruments designated as fair value of the leased property services are provided on a time hedges of such investments, are and the present value of the and material basis or as a fixed- taken to shareholders’ equity. minimum lease payments. Lease price contract, with contract payments are allocated between terms generally ranging from less Goodwill and fair value adjustments the liability and finance charges than one year up to ten years. arising on the acquisition of a so as to achieve a constant rate foreign entity are treated as of interest on the finance balance Revenue from time and material assets of the foreign entity and outstanding. The corresponding contracts is recognised at the translated at the closing rate. lease obligations, net of finance contractual rates as labour charges, are included in other hours are delivered and direct Derivative financial instruments long-term payables. The interest expenses are incurred. Derivative financial instruments are element of the finance cost is initially recognised in the balance charged to the income statement. Revenue from fixed-price sheet at cost and are subsequently The property, plant and equipment contracts is recognised under the remeasured at their fair values. acquired under finance leases are percentage-of-completion (POC) Positive and negative fair values depreciated over the shorter of method. Under the POC method, of derivative financial instruments the useful life of the asset or the revenue is generally recognised are classified as “Other receivables” lease term taking into consideration based on the services performed and “Other payables”, respectively. bargain purchase options. to date as a percentage of the total services to be performed. Changes in the fair values of All other leases are classified derivative financial instruments as operating leases. Payments If circumstances arise that may are recognised in the income made under operating leases are change the original estimates statement unless the derivative charged to the income statement of revenues, costs or extent of financial instrument is designated over the period of the lease. progress toward completion, and qualifies as hedge accounting. estimates are revised. These Changes in fair values of derivative Income statement revisions may result in increases or financial instruments, which Revenue decreases in estimated revenues qualify as hedge accounting, are Revenue in the Group consists of or costs and are reflected in recognised in equity. Where the the fair value of the consideration income in the period in which expected future transaction results received or receivable for the the circumstances that give in the acquisition of non-financial sale of goods and services in the rise to the revision become assets, any amounts deferred under ordinary course of the Group’s known by Management. equity are transferred from equity activities. Revenue is shown to the cost of the asset. Where net of value-added tax, returns, Revenue segment information the expected future transaction rebates and discounts and after Information is provided on service results in income or expense, eliminating sales within the Group. areas for the Group. The revenue amounts deferred under equity by service area is based on the are transferred from equity to the The Group recognises revenue Group’s seven service areas. income statement in the same when the amount of revenue can be Revenue by geographical market item as the hedged transaction. reliably measured and it is probable is based on the location of the that future economic benefits entity which owns the projects. Minority interests will flow to the entity and when In the statement of Group specific criteria have been met Project costs results and Group equity, the for each of the Group’s activities Project costs consist of costs elements of the profit and equity as described below. The amount directly related to projects, of subsidiaries attributable to of revenue is not considered to such as travel expenses, costs minority interests are stated as be reliably measurable until all of external services and other separate items in the income contingencies relating to the project costs. Staff costs are statement and the balance sheet. sale have been resolved. The not included in project costs. Group bases its estimates on Leases historical results, taking into External costs Leases of property, plant and consideration the type of customer, External costs consist of costs such equipment where substantially all the type of transaction and the as administration, marketing, travel the risks and rewards of ownership specifics of each arrangement. and accommodation, office rent, are transferred to the Group are IT costs and other external costs. classified as finance leases. Finance The Group sells services within leases are capitalised at the lease’s engineering, environment, inception at the lower of the management and IT. These ANNUAL REPORT 2010 45
Staff costs the balance sheet liability method value of the Group’s share of Staff costs consist of costs such on all temporary differences arising the net identifiable assets of the as wages and salaries, pension between the book values of assets acquired subsidiary/associate at costs and other social security and liabilities, and the amounts used the date of acquisition. Goodwill benefits of employees and of the for taxation purposes. Deferred tax in the Group on acquisitions of Executive and Supervisory Boards. is not recognised on temporary subsidiaries is included in intangible differences related to goodwill assets, and is amortised over Other operating income and not deductible for tax purposes. the following expected useful expenses Deferred tax is measured according lives. Other intangible assets, Other operating income and other to the tax rules and at the tax rates comprising patents and licences, operating expenses comprise under the legislation at the balance are capitalised and amortised over items of a secondary nature to the sheet date that are expected an appropriate expected useful life, core activities of the enterprises. to apply when the temporary within the ranges shown below. differences are eliminated. Changes Financial items in deferred tax due to changes The following useful lives Financial income and expenses in the tax rates are recognised are applied: consist of interest income and in the income statement. expenses, foreign exchange Goodwill: 5-20 years gain or loss and other interest Deferred tax assets, including Software, patents and income and expenses. the tax base of tax losses carried licences: 3-7 years forward, are measured at the Corporation tax and deferred tax value at which it is expected Property, plant and equipment Tax consists of current tax and that they can be utilised by and leasehold improvements changes in deferred tax for the elimination against tax on Property, plant and equipment year. The tax relating to the future earnings or by set-off and leasehold improvements income for the year is recognised against deferred tax liabilities. are measured at historical cost in the income statement. Current less accumulated depreciation. tax receivable is recognised Balance sheet Historical cost includes expenditure in the balance sheet if excess Intangible assets that is directly attributable to tax has been paid on account Goodwill represents the excess the acquisition of the items. and a current tax payable is of the cost of an acquisition Depreciation is calculated on recognised if a deficiency exists. plus costs directly attributable a straight-line basis over the Deferred tax is measured by using to the acquisition over the fair estimated useful lives of the assets.
EMPLOYEE DEVELOPMENT AND TRAINING
During 2010, we established the global Ramboll Academy to ensure a common approach to employee development. This included the launch of two extensive programmes on leadership and international project management, which for the first time gathered participants from all of Ramboll’s units. The training concept builds on participant involvement and a chance to work with real-life challenges and peer feedback – in this way strengthening the ties between our future leaders and project managers. 46 FINANCIAL STATUS ACCOUNTING POLICIES (AUDITED)
The following useful lives Associates income statement on a straight- are applied: Associates are all entities over line basis over the estimated which Group has significant useful life of the investment. Buildings: 10–50 years influence but not control, generally IT: 3 years accompanying a shareholding In the Income Statement, income Plant and equipment: 5 years of between 20% and 50% of is recognised from associates Leasehold improvements: the voting rights. Investments in which comprises the share 1-10 years. associates are accounted for by of profit after tax and less the equity method of accounting, amortisation of goodwill. The assets’ residual values calculated on the basis of the and useful lives are reviewed, Group’s accounting policies Joint ventures and adjusted if appropriate, and after deduction or addition Undertakings which are at each balance sheet date. of the Group’s share of any contractually operated jointly with unrealised intra-group gains or one or more other undertakings Conversely, property, plant losses. Investments in associates (joint ventures) and which and equipment and leasehold are initially recognised at cost. are thus jointly controlled are improvements purchased for DKK Ramboll Group’s investments recognised in accordance 50,000 or less are expensed. in associates include goodwill with the equity method. (net of any accumulated Gains and losses on disposal are amortisation and/or impairment In the Income Statement, determined by comparing proceeds loss) identified on acquisition. income is recognised from joint with the carrying amount. These are ventures which comprises the included in the income statement. On acquisition of associated share of profit before tax. companies, the difference between the cost and the book net assets of Impairment of assets the acquired company is calculated The book values of both tangible at the date of acquisition after and intangible assets, such as adjustment to fair value of the goodwill, are written down if identifiable assets and liabilities indications of impairment are (purchase method). Any remaining present. If the carrying amount positive balances (goodwill) is found to be greater than are recognised as investments the implied fair value, then in associated companies in the impairment has occurred and balance sheet and amortised in the the book value of the asset is
COMMON KNOWLEDGE MANAGEMENT PLATFORM
In 2010 our new Knowledge Management Platform, RamLink, was launched. The RamLink version 1 is designed as a common platform allowing our employees to access and share important knowledge about people and projects in Ramboll. With close to 9,000 employees scattered around the world, the system offers the opportunity to easily and quickly identify relevant experts or project experience to provide the most optimal solutions for our customers. ANNUAL REPORT 2010 47
written down to its recoverable A provision for impairment of trade Prepayments amount. The recoverable receivables is established when Prepayments consist of amount is the higher of the net there is objective evidence that expenses paid relating to selling price and value in use. Ramboll Group will not be able to subsequent financial years and collect all amounts due according consist primarily of prepaid Other investments to the original terms of receivables. interest, rent and insurance. Other investments comprise listed securities, deposits and Work in progress Equity other receivables. Deposits and Work in progress is measured Dividend distribution proposed other receivables are measured at at the sales price of the work by Management for the year is cost less any reduction according performed, corresponding to disclosed as a separate equity item. to individual assessment. Listed direct and indirect costs incurred securities are recognised at plus a proportionate share of the Provisions fair value at the trade date expected profit calculated on the A provision is recognised when and subsequently measured basis of an assessment of the stage the Group has a present legal or at market price. Fair value of completion. The sales price constructive obligation as a result adjustments are recognised is reduced by progress billings. of past events and it is probable in the income statement. Invoices on account beyond the that an outflow of resources will be stage of completion of contracts required to settle the obligation. Receivables are calculated separately for Provisions are recognised for items Accounts receivables, trade are each contract and recognised such as legal claims, restructuring recognised initially at fair value as ”payments from customers” provisions, pension provisions, and subsequently measured at under short-term liabilities. deferred tax provisions and any cost less provision for impairment. other necessary provisions.
FINANCIAL RATIOS
Number of employees, end of year = Number of all permanent and temporary employees at the end of the year, regardless of their working hours.
Hours registered in time sheets Number of full time employee equivalents = Standard working hours during the year
EBITA x 100 EBITA margin = Revenue
Operating profit x 100 Operating margin (EBIT margin) = Revenue
EBITA x 100 Return on invested capital (ROIC) = Average invested capital including goodwill
Return on equity (ROE) = Profit for the year x 100 Average shareholders’ equity
Cash conversion ratio = EBITA + Change in working capital x 100 EBITA
Equity ratio (solvency ratio) = Shareholders’ equity x 100 Total assets
The financial ratios have been prepared in accordance with the guidelines of the Danish Society of Financial Analysts (Den Danske Finansanalytikerforening). 48 FINANCIAL STATUS ACCOUNTING POLICIES (AUDITED)
Provision for pensions difference between the proceeds operating items, change in working Contributions payable under and the nominal value is recognised capital and income taxes paid. defined contribution plans are in the income statement during the Cash flows from investing activities recognised as an expense along terms of the loan. Other financial consist of payments in connection with delivery of employee service obligations are measured at with acquisitions and disposals of giving rise to the obligation amortised cost, which substantially intangible assets, property, plant to pay the contribution. corresponds to their nominal value. and equipment, and investments. Cash flows from financing activities Costs under defined benefit Other payables consist of repayments on long- plans are recognised in line with Other payables mainly consist term debt and increase of bank the performance of the employee of salary related items (bonuses, loans. Cash and cash equivalents services entitling the employees pension, tax, holiday accruals, etc.), consist of cash at bank, cash in to the benefits. The obligation accrued interest and not received hand and current securities with is measured at the present or approved vendor invoices. a maturity period shorter than value of the expected pension three months, less short-term payments attributable to the Parent Company bank loans due on demand. services delivered at the balance Investments sheet date. The obligation is Investments in subsidiaries The cash flow statement cannot measured on the basis of actuarial are recognised and measured be immediately derived from the assumptions, which are re- according to the equity method. published financial statements. assessed on a regular basis. Investments in subsidiaries are recognised in the Parent Plan assets are recognised at their Company’s income statement at fair value at the balance sheet the proportionate share of profit. date. Plan assets and related obligations are presented on a On acquisition of subsidiaries, the net basis in the balance sheet. difference between the cost and the book net assets of the acquired Gains and losses arising company is calculated at the date from changes in actuarial of acquisition after adjustment to assumptions are recognised in fair value of the identifiable assets the year in which they arise. and liabilities (purchase method). Any remaining positive balances Multi-employer plans for (goodwill) are recognised as which sufficient information investments in subsidiaries in the is not available are treated as balance sheet and amortised in the defined contribution plans. income statement on a straight-line basis over the estimated useful life Provision for claims of the investment. The portion of Claims from customers concerning the subsidiaries’ profits for the year single projects not covered by that is not distributed as dividend insurance. Provision for claims becomes retained earnings are recognised at their fair value according to the equity method. at the balance sheet date. Cash flow Financial obligations The cash flow statement shows Loans from banks that are the Group’s cash flows for the expected to be held to maturity year from operating, investing and are recognised on the date of financing activities, respectively, borrowing as the net proceeds and also includes cash and cash received less transaction costs equivalents at the beginning incurred. In subsequent periods, the and at the end of the year. Cash loans are measured at amortised flows from operating activities cost, corresponding to the are presented indirectly and are capitalised value using the effective calculated as the income for interest rate. Accordingly, the the year adjusted for non-cash ANNUAL REPORT 2010 49
RESPONDING TO THE URBANISATION CHALLENGE
The world’s attention is on cities, and for a good reason. From a global perspective, cities have become the engines of economic prosperity and development. Across Ramboll, a virtual ‘Knowledge Event’ around the theme of urbanisation took place in 2010. During the event, examples of our urban solutions were displayed, and they are now being developed to form the backbone of our future services. Furthermore, Ramboll hosted an Urbanisation Event in December, highlighting how cities are responding to global development challenges such as climate change, energy efficiency,a nd innovative economic development. Around 130 customers, employees and collaboration partners listened in on inspiring presentations and engaged in dialogue, during a joyful day at Ramboll Head Office. 50 FINANCIAL STATUS FINANCIAL STATEMENTS (AUDITED)
FINANCIAL STATEMENTS
INCOME STATEMENT
Group Parent company
Note DKK thousand 2010 2009 2010 2009
1 Revenue 6,074,921 5,510,645 76,851 69,307 Project costs -824,347 -754,219 - - External costs -1,019,007 -938,414 -43,128 -42,287 2 Staff costs -3,782,390 -3,437,113 -39,916 -32,922 3 Depreciation and amortisation -76,781 -73,253 -574 -810 11 Income from associates and joint ventures 21,334 12,797 - - EBITA 393,730 320,443 -6,767 -6,712
3 Goodwill amortisation -97,040 -83,069 - - Other operating income - 737 - - Other operating costs - -1,475 - - 10 Income from subsidiaries - - 176,385 135,229 Operating profit (EBIT) 296,690 236,636 169,618 128,517
4 Financial income 52,944 45,771 48,400 45,524 5 Financial expenses -73,710 -69,781 -44,591 -52,403 Profit before tax 275,924 212,626 173,427 121,638
6 Ta x -99,107 -87,825 1,263 3,042 Profit before minority 176,817 124,801 174,690 124,680
Minority interest -2,127 -121 - - Profit for the year 174,690 124,680 174,690 124,680
Proposed profit appropriation: Proposed dividend 26,250 26,250 Retained earnings 148,440 98,430 174,690 124,680 ANNUAL REPORT 2010 51
CASH FLOW STATEMENT
Group
Note DKK thousand 2010 2009
Operating activities: Profit before tax 275,924 212,626 3 Depreciation and amortisation 173,821 156,322 Income from associates and joint ventures -21,334 -12,456 Unrealised exchange gains, net -15,956 -10,592 Cash flow from operating activities before change in working capital 412,455 345,900
Change in work in progress -9,235 41,841 Change in receivables -110,605 -4,126 Change in payments from customers 28,962 -74,273 Change in payables 70,799 60,950 Change in working capital -20,079 24,392
Change in provisions -10,914 -43,038 Income tax paid -49,455 -94,568 Cash flow from operating activities 332,007 232,686
Investments: Investment in tangible assets, net -175,654 -45,511
Free cash flow 156,353 187,175
7 Acquisitions of companies -81,194 -31,816 Investment in intangible assets -6,969 -2,735 Investment in other financial assets 12,519 -604 Cash flow from investing activities -251,298 -80,666
Financing activities: Loan payments, net 43,348 -200,535 Dividend to minority interest -1,043 -2,544 Dividend to shareholders -26,250 -26,250 Cash flow from financing activities 16,055 -229,329
Net cash flow for the year 96,764 -77,309
Total cash and cash equivalents at 1 January 399,774 469,953 Net cash flow for the year 96,764 -77,309 Exchange rate adjustments 12,485 7,130 Total cash and cash equivalents at 31 December 509,023 399,774
52 FINANCIAL STATUS FINANCIAL STATEMENTS (AUDITED)
BALANCE SHEET, ASSETS
Group Parent company
Note DKK thousand 31.12.2010 31.12.2009 31.12.2010 31.12.2009
Goodwill 839,023 774,333 - - Software, licences, patents etc. 13,861 13,448 43 91 8 Intangible assets 852,884 787,781 43 91
Property 13,208 11,956 - - Plant and equipment 217,366 123,345 1,384 2,046 Leasehold improvements 35,751 9,669 - - 9 Property, plant and equipment 266,325 144,970 1,384 2,046
10 Investments in subsidiaries - - 1,360,461 1,321,857 11 Investments in associates and joint ventures 35,144 26,096 290 - Amounts owed by subsidiaries - - 380,232 341,926 12 Other investments 5,816 2,920 187 187 Other receivables 6,118 6,514 - - 13 Deposits 28,103 41,113 - - Investments 75,181 76,643 1,741,170 1,663,970
Total fixed assets 1,194,390 1,009,394 1,742,597 1,666,107
Accounts receivables, trade 1,160,136 1,035,936 11,709 3,031 14 Work in progress 442,822 413,588 - - Other receivables 99,050 61,293 266 362 Amounts owed by subsidiaries - - 96,878 23,834 Amounts owed by associates - 73 - - Tax receivables 91,648 72,025 32,086 49,622 6 Deferred tax assets - - 2,681 2,481 Prepayments 122,549 85,266 2,498 2,536 Receivables 1,916,205 1,668,181 146,118 81,866
Cash at bank and in hand 509,023 399,774 186,531 169,187
Total current assets 2,425,228 2,067,955 332,649 251,053
Total assets 3,619,618 3,077,349 2,075,246 1,917,160 ANNUAL REPORT 2010 53
BALANCE SHEET, EQUITY AND LIABILITIES
Group Parent company
Note DKK thousand 31.12.2010 31.12.2009 31.12.2010 31.12.2009
15 Share capital 35,000 35,000 35,000 35,000 Retained earnings 1,259,344 1,009,523 1,259,344 1,009,523 Proposed dividend 26,250 26,250 26,250 26,250 16 Shareholders’ equity 1,320,594 1,070,773 1,320,594 1,070,773
Minority interest 9,967 12,375 - -
17 Provision for pensions 6,209 6,336 - - 6 Provision for deferred tax 105,760 83,297 - - Provision for claims, etc. 30,492 35,125 - - Total provisions 142,461 124,758 - -
Bank loans 304,887 253,184 298,176 251,619 Amounts owed to associates 162 - - - Other payables 15,701 32,271 - - 18 Total long-term liabilities 320,750 285,455 298,176 251,619
Bank loans 1,418 9,773 - - 14 Payments from customers 389,939 348,100 - - Trade payables 236,729 196,066 2,698 2,465 Amounts owed to subsidiaries - - 350,144 536,088 Amounts owed to associates 4,339 6,158 33,011 - Corporation tax 112,701 69,228 - - Other payables 1,080,720 954,663 70,623 56,215 Total short-term liabilities 1,825,846 1,583,988 456,476 594,768
Total liabilities 2,146,596 1,869,443 754,652 846,387
Total liabilities and shareholders’ equity 3,619,618 3,077,349 2,075,246 1,917,160
19 Contingent liabilities 20 Operational lease obligations 21 Auditors’ fee 22 Related parties and ownership 23 Financial risk management 54 FINANCIAL STATUS NOTES (AUDITED)
NOTES DKK THOUSAND
Group
Note 1 – Segment information 2010 2009
Revenue by service area: Buildings & Design 2,100,705 1,852,805 Infrastructure & Transport 1,540,008 1,303,348 Industry & Oil/Gas 615,587 585,744 Energy & Climate 368,661 309,569 Environment & Nature 568,183 620,645 Management & Society 411,619 383,261 IT & Telecom 470,158 455,274 6,074,921 5,510,645 Revenue by geographical area: Denmark 2,375,831 2,295,640 Sweden 1,053,733 898,066 Norway 1,133,361 899,146 Finland 631,867 624,676 UK 294,219 297,602 Middle East 210,215 206,929 Russia 156,995 65,683 Rest of Europe 101,815 125,467 Rest of World 116,885 97,436 6,074,921 5,510,645
Group Parent company
Note 2 – Staff costs 2010 2009 2010 2009
Employees: Wages and salaries -3,210,231 -2,938,728 -22,851 -13,531 Pension costs -253,939 -238,983 -2,494 -2,241 Other social security costs -304,374 -242,686 -725 -434 -3,768,544 -3,420,397 -26,070 -16,206
Executive Board -12,096 -15,166 -12,096 -15,166 Board of Directors -1,750 -1,550 -1,750 -1,550 -3,782,390 -3,437,113 -39,916 -32,922
Number of employees: Number of employees end of year 8,970 8,758 38 36 Number of full time employee equivalents 8,229 8,141 33 34
In 2009, salaries to the Executive Board was affected by severance payments.
ANNUAL REPORT 2010 55
Group Parent company
Note 3 – Depreciation and amortisation 2010 2009 2010 2009
Software, licences, patents etc. -7,711 -6,529 -48 -48 Leasehold improvements -4,610 -6,798 - - Property -341 -268 - - Plant and equipment -64,119 -59,658 -526 -762 Depreciation and amortisation -76,781 -73,253 -574 -810 see note 8 and 9
Goodwill -97,040 -83,069 - - Goodwill amortisation -97,040 -83,069 - - see note 8 Depreciation and amortisation -173,821 -156,322 -574 -810
Group Parent company
Note 4 – Financial income 2010 2009 2010 2009
Interest income from subsidiaries - - 16,798 18,673 Interest income from securities - 163 - 163 Foreign exchange gain 47,912 38,507 30,693 22,677 Other financial income 5,032 7,101 909 4,011 52,944 45,771 48,400 45,524
Group Parent company
Note 5 – Financial expenses 2010 2009 2010 2009
Interest expense to subsidiaries - - -1,371 -6,164 Foreign exchange loss -36,260 -31,013 -16,560 -17,650 Other financial expenses -37,450 -38,768 -26,660 -28,589 -73,710 -69,781 -44,591 -52,403
56 FINANCIAL STATUS NOTES (AUDITED)
Group Parent company
Note 6 – Tax 2010 2009 2010 2009
Current tax on profit for the year -76,654 -93,704 3,908 2,926 Current deferred tax (movements in deferred tax) -22,463 -4,348 200 1,982 Adjustments in respect of prior years 3,348 11,927 493 -166 Tax for the year -95,769 -86,125 4,601 4,742
Tax for the year is allocated in the following way: Tax on profit for the year -99,107 -87,825 1,263 3,042 Tax on equity movements 3,338 1,700 3,338 1,700 Tax for the year -95,769 -86,125 4,601 4,742
Deferred tax: Goodwill -382 -559 - - Licences 614 712 - - Plant and equipment -5,945 -6,647 410 428 Leasehold improvements 206 -377 - - Accounts receivable, trade -9,362 -10,658 - -200 Work in progress 131,056 117,305 - - Deferred expenses 883 -881 2,271 2,253 Provisions -11,310 -15,598 - - Deferred tax, liabilities 105,760 83,297 - - Deferred tax, assets - - 2,681 2,481 Deferred tax is allocated using the actual tax rate.
Ramboll Group A/S is jointly taxed with its domestic subsidiaries. As the management company of the joint taxation, the parent company provides for the aggregate Danish tax payable on the taxable income of these subsidiaries. The jointly taxed companies are included in the scheme for payment of tax on account. The domestic subsidiaries are only liable for the income tax, which relates to the income allocated to those companies. When the management company has received the tax payments from the domestic subsidiaries, the management company takes over this liability.
Group
Note 7 – Acquisition of companies 2010 2009
Fixed assets -4,504 -1,687 Work in progress -2,764 -1,009 Operating receivables -27,380 -18,281 Cash and cash equivalent -17,430 -8,869 Long-term liabilities 5,432 151 Current liabilities 16,513 18,343 Group goodwill -72,291 -29,333 Purchase price -102,424 -40,685
Cash in acquired companies 17,430 8,869 Deferred consideration 3,800 - Acquisition of companies -81,194 -31,816
ANNUAL REPORT 2010 57
2010 Group Parent company
Note 8 – Intangible assets Goodwill Intangible assets Goodwill Intangible assets
Opening acquisition value 1,117,173 46,852 - 143 Additions 72,291 7,015 - - Disposals -1,985 -552 - - Exchange rate and other adjustments 113,007 218 - - Closing acquisition value 1,300,486 53,533 - 143
Opening amortisation -342,840 -33,404 - -52 Disposals 1,985 164 - - Amortisation for the year -97,040 -7,711 - -48 Exchange rate and other adjustments -23,568 1,279 - - Closing amortisation -461,463 -39,672 - -100
Book value at 31 December 839,023 13,861 - 43
Amortisation period (years) 5-20 3-7 - 3
2009 Group Parent company
Goodwill Intangible assets Goodwill Intangible assets
Opening acquisition value 1,052,797 43,358 - 143 Additions 29,333 2,735 - - Exchange rate and other adjustments 35,043 759 - - Closing acquisition value 1,117,173 46,852 - 143
Opening amortisation -265,349 -26,968 - -4 Amortisation for the year -83,069 -6,529 - -48 Exchange rate and other adjustments 5,578 93 - - Closing amortisation -342,840 -33,404 - -52
Book value at 31 December 774,333 13,448 - 91
Amortisation period (years) 5-20 3-7 - 3
58 FINANCIAL STATUS NOTES (AUDITED)
2010 Group Parent company
Note 9 – Property, plant & equipment Property Plant and Leasehold Property Plant and Leasehold equipment improvements equipment improvements
Opening acquisition value 12,889 614,887 38,141 - 4,096 - Opening adjustment - -64,334 - - - - Additions from acquired companies - 4,504 - - - - Additions 1,589 153,510 31,937 - - - Disposals -191 -27,309 -2,119 - -748 - Exchange rate and other adjustments 204 19,829 732 - - - Closing acquisition value 14,491 701,087 68,691 - 3,348 -
Opening depreciation -933 -491,542 -28,472 - -2,050 - Opening adjustment - 64,334 - - - - Disposals - 21,570 466 - 612 - Depreciation for the year -341 -64,119 -4,610 - -526 - Exchange rate and other adjustments -9 -13,964 -324 - - - Closing depreciation -1,283 -483,721 -32,940 - -1,964 -
Book value at 31 December 13,208 217,366 35,751 - 1,384 -
Depreciation period (years) 10-50 3-5 1-10 - 3-5 -
The net book value of finance leases amounts to DKK 11,637 thousand.
2009 Group Parent company
Property Plant and Leasehold Property Plant and Leasehold equipment improvements equipment improvements
Opening acquisition value 9,270 567,606 36,633 - 3,817 - Additions from acquired companies - 1,687 - - - - Additions 1,954 44,692 1,161 - 279 - Disposals -39 -21,663 -122 - - - Exchange rate and other adjustments 1,704 22,565 469 - - - Closing acquisition value 12,889 614,887 38,141 - 4,096 -
Opening depreciation -704 -432,943 -21,457 - -1,288 - Disposals - 19,477 52 - - - Depreciation for the year -268 -59,658 -6,798 - -762 - Exchange rate and other adjustments 39 -18,418 -269 - - - Closing depreciation -933 -491,542 -28,472 - -2,050 -
Book value at 31 December 11,956 123,345 9,669 - 2,046 -
Depreciation period (years) 10-50 3-5 1-10 - 3-5 -
The net book value of finance leases amounts to DKK 5,002 thousand.
ANNUAL REPORT 2010 59
Parent company
Note 10 – Investments in subsidiaries 2010 2009
Opening acquisition value 1,402,869 1,325,310 Additions 15,868 820 Exchange rate and other adjustments 56,612 76,739 Closing acquisition value 1,475,349 1,402,869
Opening revaluation value -81,012 -271 Share of profit for the year 203,780 160,003 Dividend paid -265,048 -198,059 Amortisation group goodwill -27,395 -24,774 Exchange rate and other adjustments 54,787 -17,911 Revaluation closing value -114,888 -81,012
Book value at 31 December 1,360,461 1,321,857
Specification ofof ParentParent Company’s Company’s shareholdings in group companies % of capital Share capital shareholdings in group companies and votes DKK 1,000
Name and registered office Directly owned Rambøll Danmark A/S, Copenhagen, Denmark 100 35,000 Ramböll Sverige AB, Stockholm, Sweden 100 124 Rambøll Norge AS, Oslo, Norway 100 3,814 Ramboll Finland Oy, Helsinki, Finland 100 1,789 Rambøll Management Consulting A/S, Copenhagen, Denmark 100 2,500 Ramboll UK Holding Ltd., London, United Kingdom 100 155,986 Rambøll Informatik A/S, Copenhagen, Denmark 100 5,000 UAB Ramboll Lietuva, Vilnius, Lithuania 100 950 Ramboll Eesti AS, Tallinn, Estonia 100 476 ZAO Ramboll, St Petersburg, Russia 65 2,208 Ramboll Polska Sp. z o.o., Warsaw, Poland 100 1,880 Ramboll Singapore Pte Ltd., Singapore 100 - Ramboll Whitbybird Australia Pty Ltd., Queensland, Australia 100 - Ramboll Ireland Ltd., Dublin, Ireland 100 1
Equity in subsidiaries, DKK 1,007,938 thousand, and booked value of goodwill, DKK 352,523 thousand amount to DKK 1,360,461 thousand.
60 FINANCIAL STATUS NOTES (AUDITED)
Group Parent company
Note 11 – Investments in associates 2010 2009 2010 2009 and joint ventures
Opening acquisition value 11,093 8,852 - - Opening adjustment -3,010 - - - Additions 971 2,329 290 - Disposals -2,796 -126 - - Exchange rate and other adjustments 64 38 - - Closing acquisition value 6,322 11,093 290 -
Opening revaluation value 15,003 2,954 - - Opening adjustment 3,010 - - - Profit for the year 21,334 12,797 - - Dividend paid -13,202 -341 - - Exchange rate and other adjustments 2,677 -407 - - Revaluation closing balance 28,822 15,003 - -
Book value at 31 December 35,144 26,096 290 -
Registered % of capital Equity Profit for the year Associates office and votes DKK thousand DKK thousand
L&T Ramboll Consulting Engineers Ltd. India 50 32,290 11,452 ViaNova Systems Danmark A/S Aarhus, DK * 35 1,866 350 Odeon A/S Lyngby, DK ** 22 1,231 361 Fehily Timoney Ramboll Limited Cork, Ireland *** 50 421 10 Georent i Sverige AB Täby, Sweden ** 50 1,772 - Ramboll Italia S.R.L. Italy **** 35 775 -
* Annual Report 31 March 2010 has been used. **Annual Reports for 2010 not compiled yet. Annual Report for 2009 has been used. ***Annual Report 30 September 2010 has been used. ****Annual Report for 2010 not compiled yet. As first year as associate no profit is recognised.
A list of Joint Ventures can be found on page 65.
Group Parent company
Note 12 – Other investments 2010 2009 2010 2009
Opening acquisition value 2,920 6,724 187 4,108 Additions 2,883 186 - - Disposals -64 -4,025 - -3,921 Exchange rate and other adjustment 77 35 - - Book value at 31 December 5,816 2,920 187 187
ANNUAL REPORT 2010 61
Group
Note 13 – Deposits 2010 2009
Opening acquisition value 41,113 38,543 Additions 8,043 2,439 Disposals -22,001 -199 Exchange rate and other adjustments 948 330 Book value at 31 December 28,103 41,113
Group
Note 14 – Work in progress 2010 2009
Selling price of production at the end of the year 7,969,216 7,177,034 Invoicing on account -7,916,333 -7,111,546 Contract work in progress, net 52,883 65,488
Recognised in balance sheet as follows: Contract work in progress 442,822 413,588 Payments from customers 389,939 348,100
Note 15 – Share capital 2010 2009 2008 2007 2006
The share capital of DKK 35,000,000 consists of 350,000 shares with a nominal value of DKK 100 each or multiples thereof. None of the shares carry any special rights.
Number of shares 350,000 350,000 350,000 350,000 35,000 Nominal value 100 100 100 100 1,000 Share capital, DKK thousand 35,000 35,000 35,000 35,000 35,000 62 FINANCIAL STATUS NOTES (AUDITED)
Note 16 – Shareholders’ equity Share Retained Proposed capital earnings dividend Total
Total equity at 1 January 2009 35,000 857,364 26,250 918,614 Exchange rate adjustments related to foreign subsidiaries and associates - 58.027 - 58,027 Value adjustment of hedging instruments - -5,998 - -5,998 Tax effects - 1,700 - 1,700 Paid dividend - - -26,250 -26,250 Proposed dividend - -26,250 26,250 - Profit for the year - 124,680 - 124,680 Book value at 31 December 2009 35,000 1,009,523 26,250 1,070,773
Exchange rate adjustments related to foreign subsidiaries and associates - 111,473 - 111,473 Value adjustment of hedging instruments - -13,430 - -13,430 Tax effects - 3,338 - 3,338 Paid dividend - - -26,250 -26,250 Proposed dividend - -26,250 26,250 - Profit for the year - 174,690 - 174,690 Book value at 31 December 2010 35,000 1,259,344 26,250 1,320,594
Note 17 – Provision for pensions
A defined benefit plan has been established for most of the Ramboll employees in Sweden, in which pension assets in 2009 have been transferred to a separate pension fund. At the balance sheet date, the value of the pension assets covers the estimated value of the pension liabilities and therefore, a provision has not been included in the balance sheet.
Group Parent company
Note 18 – Long-term liabilities 2010 2009 2010 2009
Due 1-5 years 320,750 285,455 298,176 251,619 Book value 31 December 320,750 285,455 298,176 251,619
Of which finance leases 8,336 2,412 - -
ANNUAL REPORT 2010 63
Group Parent company
Note 19 – Contingent liabilities 2010 2009 2010 2009
Pension commitments 1,153 997 - - Surety given, subsidiaries 200,308 142,304 199,419 138,956 Surety given, others 15,103 12,740 - - Performance and payments bonds 163,124 115,249 - - Contract sum joint ventures 2,666,878 3,156,733 - - Other contingent liabilities 41,921 27,944 - - 3,088,487 3,455,967 199,419 138,956
The Group has some lawsuits. Management confirms that they are not expected to have material effects on the Group’s financial statements.
Group Parent company
Note 20 – Operational lease obligations 2010 2009 2010 2009
Operational lease obligations: Due within 1 year 24,188 20,783 244 335 Due within 1 to 5 years 23,396 15,461 253 356
Rent obligations: Due within 1 year 244,372 164,656 - 1,350 Due within 1 to 5 years 778,395 625,755 - - Due after 5 years 873,683 767,812 - - 64 FINANCIAL STATUS NOTES (AUDITED)
Group Parent company
Note 21 – Auditors’ fee 2010 2009 2010 2009
Fees to auditors Statutory audit: Fees to PricewaterhouseCoopers 3,322 3,296 300 307 Fees to other audit firms 482 605 - - Total fees 3,804 3,901 300 307
Other statements with assurance: Fees to PricewaterhouseCoopers 309 305 - - Fees to other audit firms 161 325 - - Total fees 470 630 - -
Tax consultancy: Fees to PricewaterhouseCoopers 831 888 516 277 Fees to other audit firms 508 526 12 98 Total fees 1,339 1,414 528 375
Other services: Fees to PricewaterhouseCoopers 1,687 2,254 388 520 Fees to other audit firms 407 1,060 17 84 Total fees 2,094 3,314 405 604
Note 22 – Related parties and ownership
Transactions Related parties comprise Rambøll Fonden, Board of Directors, Executive Board, Managers and other key employees, subsidiaries and associates. Transactions between related parties have been conducted on commercial terms.
Ownership Ramboll Group A/S is controlled by Rambøll Fonden (The Ramboll Foundation), Hannemanns Allé 53, 2300 Copenhagen S, Denmark which owns 96% of the shares. The board of the Ramboll Foundation consists of present and former employees. Employees in Ramboll own the rest of the shares, 4%.
Number of shares at 31 December 2010: Owned by the Foundation 335,561 96% Owned by employees 14,439 4% 350,000
ANNUAL REPORT 2010 65
Note 23 – Financial risk management
Liquidity risk At the year end 2010, Ramboll had a strong financial position with a net cash position of DKK 187 million (2009: DKK 108 million), a committed funding facility of DKK 1 billion running until September 2012 and a DKK 100 million overdraft facility.
Interest rate risk The Group’s debt to credit institutions amounts to DKK 306 million (2009: DKK 263 million) and consists of floating rate bankloans in recognised credit institutions. The interest rate risk policy is to hedge between 30-70% of all Group debt. Hedging maturity is between 2 and 10 years. At the end of 2010, all debt was hedged by interest swap agreements.
Currency risk The Group’s transaction currency risk exposure is limited by the fact that payments received and made in each country are primarily performed in the same local currency. However, Ramboll is not contracting international projects in which payments are received and made in different currencies. Ramboll’s currency risk policy thrives to secure significant amounts in foreign currencies through hedging transactions. In addition to the transaction risk related to international projects, the Group is exposed to risk relating to translation of income statements and equity of foreign subsidiaries into DKK, and intercompany items such as loans, royalties, management fees and interest payments between entities with different functional currencies. Currently, currency exposure on foreign investments and intercompany loans are not hedged. The Group also has a currency risk to the extent that borrowings and interest payments are not denominated in the same currencies as the Group’s operating income. Most of the external loans are in DKK to reflect the group’s main cash flows. Operating cash is being held mainly in DKK, EUR, SEK, GBP and NOK accounts. All currencies used in more than one territory are collected in cash pools to minimise the overall cost.
Credit risk Ramboll aims to limit credit risks by assessing new customers with the Business Integrity Management System (BIMS) and by requiring payments in advance on projects when possible. The Group has methods and procedures to constantly monitor the economic status of projects ensuring adherence to budgets. A quality control system has been implemented to monitor the total project quality from start to completion.
Joint Ventures
Name, registered office and % of capital and votes Forth Design Joint Venture I/S, Copenhagen, Denmark, 40%. Hydroconseil - Rambøll Danmark I/S, Copenhagen, Denmark, 40%. Joint Venturet Rambøll Atkins, Copenhagen, Denmark, 50%. JV RDK - RRO - Halcrow, Romania, 8%. Rådgivergruppen DNU I/S, Aarhus, Denmark, 17%. Rambøll - Arup - Tec Joint Venture I/S, Copenhagen, Denmark, 50%. Rambøll - Arup - Vectura JV I/S, Copenhagen, Denmark, 44%. Rambøll - Atkins - Emch + Berger - Parsons Joint Venture, Copenhagen, Denmark, 34%. Ramboll - EIR - LDK - EREC Joint Venture, Ukraine, 20%. Ramboll - Eptisa - PM Joint Venture, Croatia, 33%. Ramboll - Fichtner - PM joint Venture, Romania, 23%. Rambøll - Gifford - Grontmij - LAP, England, 40%. Rambøll - Halcrow - Consilier Joint Venture, Romania, 24%. Ramboll - Niras - BT Engineering joint venture, Bulgaria, 33%. Rambøll - Niras - Ecopro, Bulgaria, 50%, Rambøll Arup Joint Venture, Copenhagen, Denmark, 75%. RBD- Group, Copenhagen, Denmark, 50% Consortium Ecostiler, Netherlands, 3%. JV Krasto Projekttal/Ramboll/Haskoning, Lithuania, 28%. Consortium Aqua BG Blagoevgrad, Allerød, Denmark, 19%. Infobiz, Ramboll Proline Joint Venture, Turkey, 17%. Safege Ramboll Eptisa PM Joint venture, Belgium, 20%. Pohl Ramboll Joint Venture Germany, 10%. Niras Bora, Ramboll, Safege, Siat Joint Venture, Bulgaria, 18%. Mott MacDonald Ramboll TEC Ostc Milleu Joint Venture, England, 22%. Ramboll Hydroconseil, Mali, 40%. 66 FINANCIAL STATUS MANAGEMENT’S STATEMENT AND INDEPENDENT AUDITOR’S REPORT (AUDITED)
MANAGEMENT’S STATEMENT ON THE ANNUAL REPORT
As Group Executives and Board Executive Board of Directors of Ramboll Group Flemming Bligaard Pedersen, Chief Executive Officer A/S we have today appraised Michael Rosenvold, Chief Financial Officer and approved the Annual Report Knut Akselvoll, Group Executive Director, Country Units for the financial year 2010. Søren Holm Johansen, Group Executive Director, Service Areas and Global Practices The Annual Report has been prepared in accordance Board of Directors with the Danish Financial Peter Højland, Chairman Statements Act. We consider Niels de Coninck-Smith the accounting policies applied Sten Scheibye appropriate and the accounting Øyvind Isaksen estimates made reasonable. Per Nielsen Flemming Koch In our opinion, the Consolidated Steen Nørbæk Madsen Financial Statements and the Mette Thiel Financial Statements for the Parent Company give a true and fair view of the financial position at 31 December 2010 of the Group and the Parent Company and of the results of the Group and Parent Company operations and Group’s consolidated cash flows for the financial year 1 January 2010 - 31 December 2010.
In our opinion, the Directors’ Report includes a true and fair account of the development in the operations and financial circumstances of the Group and the Parent Company, of the results for the year and of the financial position of the Group and the Parent Company as well as a description of the most significant risks and elements of uncertainty facing the Group and the Company.
We recommend the Annual Report to be adopted and endorsed at the Annual General Meeting.
Copenhagen, 2 March 2011 ANNUAL REPORT 2010 67
INDEPENDENT AUDITOR’S REPORT
To the Shareholders of Auditor’s Responsibility and We believe that the audit evidence Ramboll Group A/S Basis of Opinion we have obtained is sufficient We have audited the Financial Our responsibility is to express an and appropriate to provide a Statements and the Consolidated opinion on the Financial Statements basis for our audit opinion. Financial Statements of Ramboll and the Consolidated Financial Group A/S for the financial year Statements based on our audit. We Our audit has not resulted 1 January 2010 – 31 December 2010. conducted our audit in accordance in any qualification. The Financial Statements and the with Danish Auditing Standards. Consolidated Financial Statements Those Standards require that we Opinion comprise Income Statement, Balance comply with ethical requirements In our opinion, the Financial Sheet, Notes and Accounting and plan and perform the audit to Statements and the Consolidated Policies. Furthermore, the obtain reasonable assurance whether Financial Statements give a true Consolidated Financial Statements the Financial Statements and the and fair view of the financial comprise Cash Flow Statement. Consolidated Financial Statements position of the Company and the The Financial Statements and the are free from material misstatement. Group at 31 December 2010 and Consolidated Financial Statements of the results of the Company are prepared in accordance with An audit involves performing and the Group operations and the the Danish Financial Statements procedures to obtain audit evidence Group’s cash flows for the financial Act. Directors’ Report, which is about the amounts and disclosures year 1 January 2010 - 31 December not comprised by the audit, is in the Financial Statements and the 2010 in accordance with the prepared in accordance with the Consolidated Financial Statements. Danish Financial Statements Act. Danish Financial Statements Act. The procedures selected depend on the auditor’s judgment, Statement on Directors’ Report Management’s Responsibility including the assessment of the We have read Directors’ Report Management is responsible for the risks of material misstatement of in accordance with the Danish preparation and fair presentation of the Financial Statements and the Financial Statements Act. We have the Financial Statements and the Consolidated Financial Statements, not performed any procedures Consolidated Financial Statements in whether due to fraud or error. In additional to the audit performed accordance with the Danish Financial making those risk assessments, of the Financial Statements and the Statements Act. This responsibility the auditor considers internal Consolidated Financial Statements. includes: designing, implementing control relevant to the Company’s On this basis, in our opinion, the and maintaining internal control preparation and fair presentation information provided in Directors’ relevant to the preparation and fair of the Financial Statements Report is in accordance with the presentation of Financial Statements and the Consolidated Financial Financial Statements and the and Consolidated Financial Statements in order to design audit Consolidated Financial Statements. Statements that are free from procedures that are appropriate material misstatement, whether due in the circumstances, but not for Copenhagen, 2 March 2011 to fraud or error. The responsibility the purpose of expressing an also includes selecting and applying opinion on the effectiveness of PricewaterhouseCoopers appropriate accounting policies, and the Company’s internal control. Statsautoriseret making accounting estimates that An audit also includes evaluating Revisionsaktieselskab are reasonable in the circumstances. the appropriateness of accounting Furthermore, Management is policies used and the reasonableness Jesper Edelbo responsible for preparing a of accounting estimates made State Authorised Directors’ Report that includes a true by Management, as well as Public Accountant and fair account in accordance with evaluating the overall presentation the Danish Financial Statements Act. of the Financial Statements, the Bo Schou-Jacobsen Consolidated Financial Statements State Authorised and Directors’ Report. Public Accountant 68 FINANCIAL STATUS BOARD OF DIRECTORS AND EXECUTIVE BOARD
BOARD OF DIRECTORS
NON-EXECUTIVE PETER HØJLAND, BSc in International Business, Chairman, Chairman of the boards of, Bikuben Fondene, Copenhagen DIRECTORS Capacity - Fonden til Markedsføring og Erhvervsfremme i Hovedstadsregionen, Soldaterlegatet and Siemens A/S, on Standing (from left): the boards of Danske Bank A/S, Frederiksbergfonden, Danish Trade Council and The Denmark-America Foundation, Øyvind Isaksen FUHU, Markedsføringsfonden for Danmark and Nordic Vision Clinics AS. STEN SCHEIBYE, (MSc, PhD, B.Comm.), Peter Højland, Chairman Chairman of the boards of Novo Nordisk A/S, Technical University of Denmark (DTU), Danish Trade Council and Per Nielsen The Denmark-America Foundation. Vice Chairman of the board of the Danish Fulbright Commision. Member of the Steen Nørbæk Madsen boards of Danske Bank A/S, DADES A/S, Gambro AB, The Danish Industry Foundation, The Aase og Ejnar Danielsen Seated (from left): Foundation, Soldaterlegatet and The Danish Academy of Technical Sciences. Chairman of The Danish committee Sten Scheibye on Corporate Governance and advisor to Investor AB. NIELS DE CONINCK-SMITH, MSc and MBA, on the boards of Niels de Coninck-Smith Ferrosan Holding A/S, Orifarm A/S, Dovista A/S, Encase Limited, Decon Advisory Limited and Nordic Aviation Capital Mette Thiel A/S. ØYVIND ISAKSEN, MSc. (PhD), President and CEO of Q-Free ASA, Chairman of the Board of EPSIS AS Flemming Koch PER NIELSEN, MSc (Eng), on the boards of Infobric AB, Waterjet AB, European International Contractors EIC, Swedish Society of Civil and Structural Engineers (SvR), Hercules Grundläggning AB and Swedish Association for Foundation Engineering (SAFE). METTE THIEL, MSc, PhD (Struct. Eng)*, Senior Project Director, Rambøll Danmark A/S, on the board of Fyns Stiftstidende. FLEMMING KOCH, BSc (Eng)*, Project Director, Rambøll Danmark A/S. STEEN NØRBÆK MADSEN, BSc (Eng)*, Head of Department, Rambøll Danmark A/S, employee representative at the board in Rambøll Danmark A/S. *Elected by the employees ANNUAL REPORT 2010 69
EXECUTIVE BOARD
EXECUTIVE FLEMMING BLIGAARD PEDERSEN DIRECTORS MSc (Civil & Struct. Eng), PhD (Struct. dynamics) From left: Managing Director and Chief Executive Officer, Ramboll Group A/S Michael Rosenvold Member of the Permanent Committee on Business Policies of the Confederation of Danish Industry Flemming Bligaard Pedersen SØREN HOLM JOHANSEN Knut Akselvoll MSc (Econ) Søren Holm Johansen Executive Director, Service Areas and Global Practices, Ramboll Group A/S Member of Central Board and member of Board of Directors of Association of the Confederation of Danish Industry. On the board of Federation of Danish Knowledge Advisors
KNUT AKSELVOLL MSc (Mech. Eng.), PhD (Mech. Eng.) Executive Director, Country Units, Ramboll Group A/S
MICHAEL ROSENVOLD MSc (Business Economics and Auditing) Chief Financial Officer, Ramboll Group A/S Member of the board of Scandinavian Property Fund Copenhagen P/S 70 FINANCIAL STATUS GROUP DIRECTORS’ FORUM
GROUP DIRECTORS’ FORUM
FLEMMING BLIGAARD PEDERSEN, Chief Executive Officer, Group SØREN HOLM JOHANSEN, Executive Director, Service Areas and Global Practices, Group KNUT AKSELVOLL, Executive Director, Country Units, Group MICHAEL ROSENVOLD, Chief Financial Officer, Group ROBERT ARPE, Managing Director, Denmark BENT JOHANNESSON, Managing Director, Sweden OLE-PETTER THUNES, Managing Director, Norway MARKKU MOILANEN, Managing Director, Finland CHARLES MCBEATH, Managing Director, United Kingdom PEYMAN MOHAJER, Managing Director, Middle East JOHN SØRENSEN, Managing Director, Oil & Gas POUL ALBECK, Managing Director, Telecom THOMAS RAND, Managing Director, Energy TONNY JOHANSEN, Managing Director, Management Consulting THORLEIF MORTENSEN, Managing Director, Informatics LARS OSTENFELD RIEMANN, Service Area Director, Buildings & Design PETER MOLIN, Service Area Director, Infrastructure & Transport NEEL STRØBÆK, Service Area Director, Environment & Nature
Explore our projects, results and other interactive content at www.ramboll.com/annualreport2010
Editors: Flemming Bligaard Pedersen, Group CEO Michael Rosenvold, Group CFO Lars Devantier Kallestrup, Head of Finance and Accounting Birgitte Koch Jacobsen, Head of Communications and Branding Art Director: Pia Ursin Hollingdale Photographer: Morten Larsen Printers: Cool Gray A/S. Ramboll has a significant presence in Northern Europe, Russia, India and the Middle East. With our close to 200 offices in 20 countries we emphasise local experience combined with a global knowledge-base. www.ramboll.com WWW.RAMBOLL.COM