Falck Annual Report...Management review | Falck Annual Report 2011 1 Key figures and financial...

Falck Annual Report 2011

Annual Report 2011

Management review 1Key figures and financial ratios 2Highlights of the year 6Business areas 8 Emergency 10 Assistance 16 Healthcare 20 Training 24Corporate social responsibility 28Corporate governance 31Financial review 33Risk factors 39 Business risks 39 Financial risks 40 Group financial statements 42 Income statement 43 Statement of comprehensive income 44 Cash flow statement 45 Balance sheet 46 Equity statement 48 Notes 49 Parent company financial statements 90 Income statement 91 Statement of comprehensive income 92 Cash flow statement 93 Balance sheet 94 Equity statement 96 Notes 97 Management’s statement 107Independent auditors’ report 108Board of Directors, Executive Management Board and auditors 109 Legal entities in the Falck Group 111Definitions of ratios 115

01

42

90

BrasilEmergencyTraining721 employees

UruguayEmergency1,104 employees

TrinidadTraining45 employees

VenezuelaEmergency391 employees

ColumbiaEmergency1,477 employees

EcuadorEmergency116 employees

PanamaEmergency145 employees

El SalvadorEmergency83 employees

USAEmergencyTraining2,911 employees

SpainEmergency412 employees

Great BritainEmergencyTraining127 employees

GermanyEmergencyTraining108 employees

BelgiumEmergency277 employees

NetherlandsEmergencyTraining374 employees

DenmarkEmergencyAssistanceHealthcareTraining9,627 employees

NorwayEmergencyAssistanceHealthcareTraining609 employees

SwedenEmergencyAssistanceHealthcare1,444 employees

EstoniaAssistance20 employees

FinlandEmergencyAssistance63 employees

TurkeyEmergency4 employees

RussiaEmergency

KazakhstanEmergency

ThailandTraining11 employees

AzerbaijanTraining18 employees

NigeriaTraining83 employees

United ArabEmiratesEmergencyTraining43 employees

IndiaEmergency16 employees

MalaysiaTraining77 employees

SlovakiaEmergency1,732 employees

SingaporeTraining10 employees

VietnamTraining6 employees

PolandEmergencyHealthcare2,982 employees

RomaniaEmergency221 employees

24Falck’s training centre at Teeside in the UK has opened a 24-metre high tower for wind turbine training

Training

16Falck now operates 16 medical clinics in Poland

Healthcare

1,800,000As of the turn of the year 2011-2012, Falck served 1.8 million pri-vate customers in its Assistance business in Denmark, Norway, Sweden, Finland and Estonia

Assistance

1,800With more than 1,800 ambulances in 14 countries and fire-fighting contracts in eight countries, Falck is both the largest international ambulance operator in the world and the larg-est international fire service in the world

Emergency

Revenue by geographical area Revenue by business area

Denmark, 53.6%

Nordic region, 16.7%

Europe, 11.9%

North America, 10.5%

South America, 5.9%

Rest of the world, 1.4%

Emergency, 53.6%

Assistance, 26.4%

Healthcare, 10.0%

Training, 10.0%

Management review | Falck Annual Report 2011 1

Key figures and financial ratios

The Group focuses on a number of key figures and ratios which are not all derived directly from the income statement, cash flow statement and balance sheet. Theese key figures and ratios are shown below.

KEY FIGURES DKK million 2007 2008 2009 2010 2011

Income statementRevenue 6,271 7,066 7,529 8,367 10,193Operating profit before amortisation, depreciation and impairment, costs from business combinations and exceptional items (EBITDA) 815 842 989 1,119 1,306Operating profit before costs and amortisation from business combinations and exceptional items (EBITA) 570 587 721 839 980

Profit before financials 578 574 702 763 973Financials etc. -176 -201 -114 -122 -273

Profit before tax 402 373 588 641 700Income taxes -91 -98 -171 -183 -184

Profit for the year 311 275 417 458 516Amortisation of intangible assets and costs from business combinations 9 13 19 50 89Exceptional items -17 - - 26 -82Debt restructuring costs - - - - 73Tax on normalisation 4 -2 -4 -7 -35

Normalised profit after tax 307 286 432 527 561

Cash flow statement EBITA 570 587 721 839 980Amortisation, depreciation and impairment 245 255 268 280 326

EBITDA 815 842 989 1,119 1,306Change in working capital including operating provisions -31 6 379 -113 -82Investments in intangible assets and property, plant and equipment -257 -295 -336 -401 -363Sales of non-current assets 21 13 64 237 37

Free cash flow 548 566 1,096 842 898Free cash flow after exceptional items, interest and tax 236 300 801 478 513Investments in acquisitions -59 -460 -73 -720 -565Dividends paid, repayments, and changes in interest-bearing debt -99 258 -528 166 298

Change in cash and cash equivalents 78 98 200 -76 246

Balance sheet Current assets excluding cash and cash equivalents, etc. 754 813 1,020 1,464 1,590Liabilities excluding credit institutions, income taxes, etc. -1,706 -1,766 -2,365 -2,612 -2,811Operating provisions -74 -75 -68 -85 -54Non-current assets excluding goodwill 1,562 1,635 1,690 1,665 1,747

Net operating assets excluding goodwill 536 607 277 432 472Goodwill 3,594 3,897 4,075 4,711 5,302Intangible assets from acquisitions 28 93 81 261 345Income taxes -15 -24 -22 -40 -51

Net operating assets including goodwill 4,143 4,573 4,411 5,364 6,068

Total equity 834 908 1,407 1,788 2,094Net interest-bearing debt 3,139 3,377 2,577 2,949 3,259Provisions for deferred tax 102 63 93 205 206Non-operating assets and liabilities 68 225 334 422 509

Financing 4,143 4,573 4,411 5,364 6,068

KEY RATIOS

Income statement Revenue growth % 16.5 12.7 6.6 11.1 21.8Organic growth % 7.3 9.3 4.3 5.1 3.6EBITA margin % 9.1 8.3 9.6 10.0 9.6Effective tax rate, normalised for change in tax rate in 2007 % 26.4 26.3 29.0 28.6 26.2Earnings per share (EPS) DKK 3.2 2.9 4.4 4.8 5.4Diluted earnings per share (DEPS) DKK 3.1 2.7 4.3 4.6 5.3

Cash flow statement Cash conversion rate % 96.1 96.4 152.0 100.4 91.6Net capital investments less depreciation DKKm -9 27 -8 -120 -Cash flow from operating activities DKKm 449 575 1,063 546 681

Balance sheet Total assets DKKm 6,355 6,979 7,635 9,089 10,293

Equity ratio % 13.1 13.0 18.4 19.7 20.3Return on equity % 60.1 32.6 36.0 28.9 29.7Return on equity excluding exceptional items % 57.1 32.6 36.0 30.6 24.8Net interest-bearing debt to EBITDA, normalised Factor 3.85 3.76 2.64 2.48 2.47

Other financial ratios Number of employees at year-end Number 15,083 16,044 16,457 19,174 25,262

In the Group, cash flows are divided into free cash flow, investments in acquisitions and dividends paid, repayments and change in interest-bearing debt. In the free cash flow, investment in intangible assets and property, plant and equipment is deducted as the Group invests in vehicles, infrastructure and similar assets as part of ordinary operations. Thus, the free cash flow reflects the amount available for acquisitions, and repayments on debt.

Earnings and diluted earnings per share have been calculated in accordance with IAS 33 (note 14). For definitions of ratios, see page 115.

2 Falck Annual Report 2011 | Group

Revenue growthDKK million %

12,000

10,000

8,000

6,000

4,000

2,000

0

24

20

16

12

8

4

0

2007 2008 2009 2010 2011

EBITA and EBITA marginDKK million %

1,200

1,000

800

600

400

200

0

18

15

12

9

6

3

0

2007 2008 2009 2010 2011

Revenue growth Organic growth Revenue

Cash conversion rate and free cash flowDKK million %

1,200

1,000

800

600

400

200

0

150

125

100

75

50

25

0

2007 2008 2009 2010 2011

Cash conversion rate Free cash flow

EBITA margin Operating profit before costs and amortisation from business activities and exceptional items (EBITA)

Operating assets and liabilitiesDKK million

2,800

2,400

2,000

1,600

1,200

800

400

0

2007 2008 2009 2010 2011

Operating assets Operating liabilities

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

DKK million Revenue EBITA Operating margin (%)

Organic 2011 2010 2011 2010 2011 2010 growth

Emergency 6,385 4,834 435 329 6.8 6.8 4.6 Assistance 2,693 2,470 335 269 12.4 10.9 6.2 Healthcare 1,112 1,196 82 75 7.4 6.3 (8.6)Training 1,019 958 128 142 12.6 14.8 6.9 Other 24 Elimination (1,016) (1,091)Falck Group 10,193 8,367 980 839 9.6 10.0 3.6

Group | Falck Annual Report 2011 3

Management review

On the way to becoming a worldwide operator

In 2011, we came substantially closer to one of our goals: To become a worldwide organisation that works to prevent accidents, diseases and emergency situations; that rescues and assists people in an emergency quickly and competently; and that rehabilitates people after illness and injury.

The Falck Group’s ownership structure was also settled in 2011, and the owners are now Lundbeck Foundation, KIRKBI, the Executive Management Board, ATP, Folksam and PFA. With these shareholders, we expect to continue our international expansion and maintain our strong position in the Nordic region. We seek to achieve this using our many years of experi-ence, mainly from Denmark, to develop new services and by exporting existing service concepts which we adapt to local conditions. Falck thus contributes to increasing the quality and efficiency of the services we provide to the public authorities, companies and the local population.

Over the course of the year, we consolidated our position in a number of important fields in all our business areas.

We purchased the leading ambulance and medical services company in South America, with 750,000 subscribers and activities in six countries. We also acquired a significant US am-bulance company that provides assistance to people in distress in seven states on the US East Coast, so that we now have a presence on both the east and west coast of the United States. In Europe, we set up ambulance operations in Germany and won a number of ambulance contracts, e.g. in Poland, where the number of Falck ambulances more than doubled to 84.

In the Assistance business, we signed a contract to provide roadside assistance to the customers of Norway’s largest insurance company. We also won a contract to supply an envi-ronmentally friendly fleet management system to the largest bus company in Norway. Moreover, 30,000 Nordic travellers received assistance from Falck TravelCare, including referrals to clinics, hospitalisation and repatriation from a number of holiday destinations.

In the Healthcare business, Falck Healthcare acquired the second-largest private provider of healthcare solutions in Denmark.

Never before has Falck provided safety training to so many em-ployees in the off-shore industry: 204,000 people attended our courses in 2011 to learn how to handle themselves and their colleagues in difficult and hazardous situations. We opened yet another training centre, this time in Azerbaijan, which means we now operate 36 training centres in 15 countries on five continents.

This higher activity level pushed our revenue up by 21.8% to DKK 10.2 billion. The organic growth rate was 3.6%. Our growth was also reflected in the growth in our operating profit, which rose 16.8% to DKK 980 million.

Financially, 2011 was a good year for Falck. But at Falck, busi-ness is not just about financial performance. Falck is rooted in the services provided for 105 years by generation after genera-tion of dedicated employees whose prime task was to respond when an accident occurred. They are the people who have created – and continue to develop – the excellent reputation Falck enjoys today.

The employees have been and always will be the core and the driving power of Falck. Our physicians, rescue officers, fire-men, physiotherapists, psychologists, instructors – all of our employees, are the hallmark of our organisation, whether they help fight a fire, get the car running, take care of sore joints, teach people how to look after themselves in hazardous situa-tions or otherwise help and create peace of mind for people in more and more parts of the world. It is our duty to honour the Falck heritage – not just out of re-spect for the people who have worked to bring Falck to where it is today, but also because coming generations will carry the organisation forward, ensuring that Falck will work for citizens, businesses and authorities in the communities we serve – also in the years to come.

Lars Nørby Johansen Allan Søgaard LarsenChairman President and CEO

Highlights of the year

March

US ambulance services provider acquiredFalck executed the agreement signed on 1 January 2011 to purchase US-based ambulance company LifeStar. The company operates 440 ambulances and other rescue vehicles in seven states on the US East Coast. Falck already operates ambulances in California and is now the third-largest ambulance company in the United States.

Polish medical clinics acquiredIn the same month, Falck acquired a controlling interest in Starowka, a company which operates four medical clinics with general practitioners, specialists and out-patient treatment in Warsaw and central Poland. This raised the number of medical clinics in Poland operated by Falck to 16.

Acquired the leading ambulance and medical services company in South America Falck now holds 63.1% of the parent company of Colombia-based Grupo EMI, the leading provider of ambulance and medi-cal services in South America. The company has 3,135 employ-ees and offers a broad range of rescue services and products to people in Colombia, Uruguay, Venezuela, Ecuador, Panama and El Salvador.

June

Signed fleet management contractsFalck signed a large framework agreement with Norway’s larg-est bus company to supply a fleet management system that increases safety, protects the environment and saves fuel. The system – Falck Sirius Eco Drive – makes it easier for drivers to optimise their individual driving behaviour.

May

Acquired HealthCare Danmark Falck strengthened its position as the largest private provider of healthcare solutions by purchasing the second-largest operator in the field, HealthCare Danmark. With this acquisition, Falck expanded its network of healthcare clinics and has grown even stronger in its ability to prevent illness and strain. HealthCare Danmark provides healthcare schemes for 130,000 employees in public and private companies.

6 Falck Annual Report 2011 | Management review

July

New ownership in place The new ownership of Falck – consisting of the Lund beck Foun-dation, KIRKBI, the Executive Management Board, ATP, Folksam and PFA – was finally in place, having received the approval of the competition authorities. The Lundbeck Foundation and KIRKBI hold 57% and 20% of Falck respectively. The Lundbeck Foundation is a commercial foundation that provides subsidies for scientific purposes in the biomedical and natural sciences, and KIRKBI is owned by the family behind the world-famous LEGO bricks, the Kirk Kristiansen family.

Won ambulance contract in Poland In a number of tenders, Falck won contracts for an additional 28 ambulances, bringing the total number of ambulances oper-ated in Poland to 66.

September

Now also in Azerbaijan Falck acquired 65% of Caspian Safe, a company that runs a centre for safety training of off-shore employees at Baku, Azer-baijan. As a result, Falck is now also making its competencies available to oil and gas companies operating in and around the Caspian Sea.

November

Ambulances in Germany Falck acquired German ambulance company Krankentransport Herzig, which provides ambulance services in Hamm, North Rhine-Westphalia, with close to 100 employees and 20 vehicles. This is the first time since the 1980s that Falck is operating am-bulance services in Germany. Through this company, Falck will likely participate in coming tender rounds for ambulance and patient transport contracts in Germany.

December

Won ambulance contract in Poland Falck will be operating even more ambulances in Poland after winning a number of additional contracts in the Lodz region: a total of 29 ambulances (18 of which are new) and a rescue boat. Falck won a number of other Polish contracts during the year and now manages a total of 84 ambulances and two rescue boats.


Assistance

Falck’s Assistance services are concentrated in four Nordic countries (Denmark, Finland, Norway and Sweden). The services provide the citizens with the greatest possible se-curity and peace of mind, either by preventing accidents or by providing fast and competent assistance when accidents occur. Assistance services are often subscription-based and especially provide help to subscribers with their cars and homes. As an example, Falck helps members whose car has broken down: in most cases, Falck staff can repair the car on the spot. Falck helps homeowners with everything from water in the basement to snow on the roof.

Emergency

Falck is the largest international ambulance service provider in the world. Falck provides ambulance services to the peo-ple of 14 countries in Europe and North and South America in close collaboration with the authorities. Falck operates more than 1,800 ambulances. Falck is also the world’s largest international fire-fighting operator, with activities in eight different countries. In Den-mark, Falck provides fire-fighting services for two-thirds of the country’s municipalities. In the other countries, Falck is active in industrial fire services, fire training and fire ser-vices consulting for both public and industrial customers

Healthcare

An important part of Falck Healthcare’s efforts consists of preventing illness, stress and attrition. The goal is to en-sure that each individual has a better, longer and healthier worklife. This also means greater job satisfaction at the workplace, as well as lower costs related to illness, lower public-sector costs for social security and lower costs for in-surance companies saving money on claims resulting from a reduction in or loss of working capacity, for example.

Training

Falck provides rescue and safety courses and other safety ser vices in 15 countries on five continents. This happens at 28 training centres aimed at the offshore industry and the maritime sector, but the chemical industry, the aviation industry and the armed forces in Denmark and Sweden also make use of Falck’s facilities and services. In addition, Falck has eight land-based training centres in the Netherlands. At all these centres, people are instructed in safe behaviour in order to avoid accidents in the workplace, and they are taught how to react correctly – also under extreme condi-tions – if accidents do occur.

Business areas and their performance

Per Riber Jacobsen, age 42, paramedic,helping a patient on board the Falck DRF Danish-German medical helicopter together with a German colleague.

Emergency

Falck is the world’s largest international ambulance operator and also the world’s largest fire service provider

1,200 Some 1,200 missions are operated from the base each year The helicopter is on standby and ready for response in about two minutes during daytime.

Emergency

•Establishedambulanceoperationsinsixcountriesin South America

•ExpandedambulanceoperationsintheUnitedStates

•DoubledthenumberofambulancesoperatedinPoland

•BeganoperationsofmoreindustrialfireservicesinEurope

Falck is also the world’s largest international fire-fighting opera-tor, with activities in eight different countries. In Denmark, Falck provides fire-fighting and fire-prevention services for two-thirds of the country’s municipalities. In the other countries, Falck is active in industrial fire services, fire training and fire services consulting for both public and industrial customers.

In South America, Falck acquired a 63.1% stake in Grupo EMI, the leading provider of ambulance and medical services in Cen-tral and South America, with operations in Colombia, Uruguay, Venezuela, Ecuador, Panama and El Salvador. The company has 3,135 employees and operates 270 ambulances and other vehicles and has a large network of family doctors and medical clinics.

Falck’s Emergency activities in 2011 saw significant international expansion and a number of new contracts. This contributed to a 32.1% increase in revenue from the Emergency business, from DKK 4,834 million to DKK 6,385 million

In 14 countriesFalck is the largest international ambulance service provider in the world. Falck provides ambulance services to the people in 14 countries in Europe and North and South America.

Falck is the largest international ambulance service provider in the world. Falck provides ambulance services to the people in 14 countries in Europe and North and South America in close collaboration with the authorities. Falck operates more than 1,800 ambulances with ambulance officers, nurses and/or doc-tors treating more than two million sick or injured people every year. In addition, Falck also helps handle many other pre-hospi-tal services such as the operation of doctors’ emergency cars, emergency response vehicles and emergency helicopters.


EMI’s activities are based on subscriptions held by private households and businesses: each of the over 750,000 subscrib-ers can call an ambulance or a doctor at any time of day or night or receive advice on disease and health over the phone.

Since the EMI acquisition this spring, this new Falck company has so far purchased another ambulance company in Colombia and also achieved organic growth.

In Brazil, Emergency activities to public-sector customers did not grow as expected. It was therefore decided to divest the

activities and focus solely on the private and business market going forward.

In the United States, Falck acquired LifeStar shortly after the turn of the year. LifeStar operates 440 ambulances and other vehicles on the US East Coast. During the course of the year, Falck acquired – through LifeStar – another small ambulance company and won a number of new contracts, including one involving running ambulance services in Florida.

New contracts were also won in California, where Falck provides ambulance services through its subsidiary Care Ambulance Ser-vice, including the contract for ambulance services for the City of Orange.

RevenueDKK million

7,500

6,000

4,500

3,000

1,500

0

07 08 09 10 11

Organic growth%

12

10

8

6

4

2

0

07 08 09 10 11

Falck ambulances

1,800

1,500

1,200

900

600

300

0

07 08 09 10 11

DKK million 2011 2010

Emergency Revenue 6,385 4,834Revenue growth 32.1% 13.2%Organic growth 4.6% 7.6%EBITA 435 329EBITA margin (%) 6.8% 6.8%

32.1%Revenue from the Emergency business rose 32.1%, from DKK 4,834 million to DKK 6,385 million.


In Poland, Falck won tender contracts in six regions and will operate 84 ambulances going forward – up from 38 in 2010 – and two ambulance boats. Of these ambulances, Falck began operating 28 in 2011 and 18 on 1 January 2012. Moreover, Falck was appointed ambulance services operator for three stadiums where the European Football Championship will be held in the summer of 2012.

In Slovakia, growth was mainly in fire services, with two new five-year contracts in 2011.

In Spain, the upward trend in the fire business continued in 2011, and a number of new contracts were signed during the year, which contributed to the growth. Moreover, a number of additional services were provided under several existing con-tracts, in connection with maintenance of the facilities covered by the contracts.

In Sweden, revenue grew due to a high level of activity under the existing ambulance contracts and new contracts for fire services at the Forsmark nuclear power plant and the airports at Arlanda and Sätenäs. In addition, Falck won a contract for fire services and roadside assistance in connection with traffic acci-dents in Stockholm, the capital of Sweden, expanded the scope

In addition to the acquisitive growth, organic growth of 4.6% was generated, mainly from operations outside Denmark

With the acquisition of Krankentransport Herzig, based in Hamm, Germany, Falck also obtained a foothold as an ambu-lance operator in Germany, with 20 ambulances so far.

In early 2012, Falck and its Spanish partner, Grupo Dominguis, acquired a 75% stake in VL, an ambulance company based in Catalonia in eastern Spain that operates 70 ambulances and similar vehicles.

In addition to the acquisitive growth, organic growth of 4.6% was generated, mainly from operations outside Denmark, which generated 9.3% organic growth. Organic growth was par-ticularly strong in Poland, Slovakia, Spain and Sweden.

2/3Falck provides fire-fighting and fire-prevention services for two-thirds of the municipalities in Denmark.


of the ambulance contracts in Stockholm and won a contract for operating the home visiting GP service in the Scania region.

In Denmark, Falck provides ambulance and emergency helicop-ter services for about 85% of the population and supports the efforts to lift the quality of pre-hospital services. New services include direct ambulance-to-hospital video transmission which enables the hospital doctor to advise the ambulance officer and prepare for the correct treatment of patients when they reach the hospital. Moreover, the proportion of ambulance staff that are also paramedics – highly trained ambulance officers – rose substantially in 2011.

Falck also provides fire-fighting services for 63 of the 98 munici-palities in Denmark. The number of responses to fire incidents during the year was 13,754, down from 14,502 in 2010.

Moreover, Falck uses the latest technology in its fire-fighting ser-vices to improve quality, not least in its endeavour to document response times, performance and special areas of focus.

A statement by the Danish Emergency Management Agency shows that the ten municipalities in Denmark with the short-est response times all use Falck as their provider of fire-fighting services.

Operating profit from the Emergency business was DKK 435 million in 2011, up from DKK 329 million in 2010; this corre-sponds to 32.2% growth, which was primarily related to acquisi-tions. To a greater extent than in 2010, earnings in 2011 were affected by investments in future growth, including significant costs incurred from involvement in the tender process in Poland and an expansion of the Group’s support functions relating to international emergency activities.

Falck operates more than 1,800 ambulances with ambulance officers, nurses and/or doctors treating more than two million sick or injured people every year

Top 10 The ten municipalities in Denmark with the shortest response times all use Falck as their provider of fire-fighting services.


In Norway, the number of roadside responses increased after Falck signed a contract to provide roadside assistance to the customers of Norway’s largest insurance company. The agreement covers approximately 700,000 vehicles

30,000 Falck Travelcare provided 30,000 responses of assistance to travellers outside the Nordic region in 2011 – 8,000 more than in 2010.

Assistance

Per Martin Garsjø, age 52, assistance rescue officer,provides assistance to a car owner near Oslo, Norway. Falck has provided roadside assis-tance to car owners in Norway since 1949.

Assistance

•Acontractforroadsideassistancesignedwiththelargestinsurance company in Norway

•Significantincreaseinsalesofalarms

•30,000travellersoutsidetheNordicregionassisted

•1,380,000responsesin2011

By the end of the year, Falck had 1.8 million subscribers of Assis-tance services, of whom close to 100,000 were served through public institutions and private-sector companies. The total num-ber of responses provided by Falck in 2010 was 1,380,000.

Revenue improved from DKK 2,470 million in 2010 to DKK 2,693 million in 2011. Organic growth accounted for 6.2% of this up-ward trend, which was primarily the result of continuing growth in the roadside assistance portfolio and in travel assistance.

During the first months of the year, the Nordic region was hit by huge amounts of snow and long spells of severe frost. This meant that many Falck members needed assistance from Falck to start their cars, repair them or pull them out of the snow. Summer brought a widespread cloudburst and a number of very heavy rainfalls, which caused members to again rely heav-ily on Falck to make temporary home repairs, recover equip-ment and dehumidify water-damaged rooms.

In Norway, Finland and, to some extent, Sweden as well, the severe winter weather generated increased revenue as Falck’s ser-vices are mainly provided on a pay-per-use basis in these countries.

In Norway, the number of roadside responses increased after Falck signed a contract to provide roadside assistance to the customers of Norway’s largest insurance company. The agree-ment covers approximately 700,000 vehicles.

Assistance provides customers with security and peace of mind through advice, prevention and help

1,380,000 Falck provided 1,380,000 assistance responses in 2011 to members in Denmark, Norway, Sweden, Finland and Estonia.

Falck’s Assistance services are concentrated in four Nordic coun-tries (Denmark, Finland, Norway and Sweden). The services pro-vide the citizens with the greatest possible security and peace of mind, either by preventing accidents or by providing fast and competent assistance when accidents occur.

Assistance services are often subscription-based and especially provide help to subscribers with their cars and homes. As an example, Falck helps members whose car has broken down or if they are involved in an accident: in most cases, Falck staff can repair the car on the spot. Falck helps homeowners with every-thing from water in the basement to snow on the roof.

Also, both private companies and public authorities can make use of Assistance services in situations involving buildings, health, travel and more.


Falck also signed an agreement with the largest bus company in Norway to deliver the Sirius Eco Drive fleet management sys-tem, which helps increase safety, protect the environment and save fuel.

Many people in Denmark and Sweden travelled abroad in 2011, boosting the level of activity at Falck TravelCare, which provided assistance to almost 30,000 travellers from the Nordic region with referrals to clinics, hospitalisation and repatriation from a number of popular holiday destinations outside the Nordic re-gion. The number of assistance responses increased by around 8,000 year on year, partly because of new contracts with two of the largest insurance companies in Denmark.

More and more people are installing a Falck Alarm in their home. During the last quarter of 2011, sales of alarms rose by 65% from the prior-year period. As a result of this growth, Falck opened its own control centre with a new IT platform; previ-ously, this service was outsourced. Also in Sweden, the recently started alarm sales showed good growth.

In Denmark, Falck launched a new service in May called BoligRedning (‘home rescue’) that combines traditional emer-gency assistance with services such as temporary repairs after wind storms and burglaries, including tree felling, removal of snow from roofs, and a telephone advice line where subscribers can call and ask about all sorts of problems they may have with their home.

In 2011, Falck introduced an application for smartphones which tells exactly where a roadside assistance subscriber is located so that help can be provided quickly. The application also shows the subscriber where the Falck rescue vehicle is on a map so that the subscriber can see when it will arrive.

Operating profit from the Assistance business was DKK 335 million in 2011 versus DKK 269 million in 2010, corresponding to 24.5% growth. Earnings in 2011 were affected by the severe winter in early 2011, when many Falck rescue officers and dis-patch centre staff worked round the clock to help customers in distress. As most of the members in Denmark – and to some extent in Sweden as well – have subscriptions that allow them to draw on Falck services whenever needed, there was no com-pensation for the winter costs in the form of a corresponding increase in revenue. In addition to the increase in revenue, the year-on-year growth was attributable to the fact that the winter of 2010 was even more severe than 2011, with huge amounts of snow and severe frost both at the beginning and end of 2010.

RevenueDKK million

3,000

2,500

2,000

1,500

1,000

500

0

07 08 09 10 11

Organic growth%

10

8

6

4

2

0

07 08 09 10 11

Subscribers

2,000,000

1,500,000

1,000,000

500,000

0

07 08 09 10 11


Assistance Revenue 2,693 2,470Revenue growth 9.0% 13.1%Organic growth 6.2% 8.0%EBITA 335 269EBITA margin (%) 12.4% 10.9%


Healthcare

The goal is to ensure that each individual has a better, longer and healthier worklife. This also means greater job sitisfaction at the workplace, as well as lower costs related to illness

1,600,000 Falck covers 1.6 million people in Denmark with healthcare schemes.

Zuzana Rohutná, age 33, physiotherapist, helps a pregnant woman with antenatal exercis-es at one of Falck Healthcare’s clinics. The exer-cises strengthen the woman’s arm and shoulder muscles and helps her breathe correctly.

Healthcare

•ExpandedpositioninPolandandnowoperatesmore than16medicalclinics

•AcquiredDenmark’ssecond-largestproviderof healthcare solutions

•WontwosignificantcontractsforinterdisciplinarytreatmentinSweden

•CutcostsforsicknessbenefitsadministrationbyDKK75millionunderamultiple-yearcollaborationwithsixDanishmunicipalities.

Revenue from the Healthcare business dropped from DKK 1,196 million in 2010 to DKK 1,112 million in 2011, mainly as a result of falling revenue in Denmark and termination of con-tracts for clinics in the United Arab Emirates at the end of 2010.

The decline in revenue in Denmark was attributable to a con-tinued downward trend in the market for temporary healthcare staff and a change in the mix of assistive aids contracts, with municipalities increasingly buying the aid equipment directly and Falck only handling it.

Falck Hjælpemidler (assistive aids) won two additional contracts and is now operating assistive aid depots for 12 Danish munici-palities.

Falck won a major contract for providing healthcare assistance to the Municipality of Copenhagen, in spite of the fact that the Danish temporary healthcare staff sector was affected by the generally sluggish job market in Denmark and the efforts by the Danish regional authorities to reduce the use of external temp staff.

Falck Healthcare is Denmark’s largest private provider of healthcare services. Falck helps keep people healthy, also by helping them design healthy workspaces

770,000Falck has signed agreements with two Swedish insurance companies and now provides Healthcare services to 770,000 people in Sweden, up from 260,000 in 2010.

An important part of Falck Healthcare’s efforts consists of pre-venting illness, stress and attrition. The goal is to ensure that each individual has a better, longer and healthier worklife. This also means greater job satisfaction at the workplace, as well as lower costs related to illness, lower public-sector costs for social security, lower costs for insurance companies saving money on claims resulting from a reduction in or loss of working capacity, for example.


Falck acquired 75% of Starowka, a company that owns four medical clinics in and around the Polish capital of Warsaw, thus boosting Falck’s position as a nationwide supplier to the Polish National Health Fund. Falck now operates a total of 16 medical clinics in Poland.

A significant share of Falck’s healthcare activities are centred around interdisciplinary treatment involving physiotherapists, chiropractors, massage therapists and reflexologists working together to treat clients.

In 2011, Falck acquired Healthcare Danmark, the second-largest provider of private-sector healthcare solutions in Denmark, which handles interdisciplinary healthcare schemes for 130,000 public- and private-sector employees.

Falck now covers 1.6 million people in Denmark with healthcare schemes, has contracts with 8,900 public-sector and private-sector organisations and includes 212 healthcare clinics in its network of therapists and other healthcare professionals.

Falck also saw substantial growth in the healthcare field in Swe-den, where sizeable contracts were signed with two insurance companies at the end of 2011. Falck Healthcare now covers 770,000 people in Sweden, up from 260,000 in 2010.

In Norway, Falck signed healthcare scheme agreements with an additional 25 companies in the Oslo area and provided roughly 8,000 treatments.

Falck Jobservice provides support to job centres in Danish mu-nicipalities in their efforts to help people on sick leave return to work or otherwise quickly clarify their situation and thus shorten the period of uncertainty regarding their future. Under this multi-year collaboration, Falck Jobservice has now assisted in more than 60,000 sickness-benefit cases and reduced sick-ness benefit costs by 75 million from 2009 to 2010 in the six municipalities in the collaboration. In 2011, Falck Jobservice had contracts with seven Danish municipalities, up from six in 2010.

In spite of the fall in revenue, operating profit rose from DKK 75 million to DKK 82 million. This growth was primarily the result of cost efficiencies.

RevenueDKK million

1,200

1,000

800

600

400

200

0

07 08 09 10 11

Organic growth%

30

20

10

0

-10

-20

07 08 09 10 11

Number of healthcare professionals

3,000

2,500

2,000

1,500

1,000

500

0

07 08 09 10 11


Healthcare Revenue 1,112 1,196Revenue growth -7.0% 5.0%Organic growth -8.6% -4.2%EBITA 82 75EBITA margin (%) 7.4% 6.3%


Thangaveloo Kanapathy, age 52, instructorteaches his colleagues fire fighting at the Falck Training centre in Johor Bahru, Malaysia.

Training

Falck operates training activities in all important geographies for deep-sea oil and gas exploration

240,000 Falck Training had 240,000 course attendees in 2011 – up from 219,000 in 2010.

Training

•Trained240,000courseparticipants,upfrom219,000 in 2010

•Openedanewtrainingcentretargetingthewind turbineindustry.

•AcquiredatrainingcentreinAzerbaijan

•CertifiedeighttrainingcentrestotheISO18000standard

In spite of growing competition, primarily in Europe, Falck Train-ing successfully consolidated its position in 2011 as the world’s leading provider of rescue and safety courses for employees in the offshore industry. Revenue grew from DKK 958 million in 2010 to DKK 1,019 million; organic growth accounted for 6.9% of this increase.

The greatest progress in rescue and safety training was achieved in Brazil, Nigeria and Norway. In addition, growth continued in the recently established activities in Thailand, Singapore and Vietnam. Falck’s training centre in the United Arab Emirates also saw growth in 2011, but not sufficiently to warrant such a large centre. As a result, the centre will most likely be replaced by a smaller centre sometime in 2012.

In the offshore field, Falck trained 204,000 people in 2011 at its 28 specialised training centres, up from 183,000 in 2010. It was particularly good news that a number of world-wide contracts were signed with key customers.

Market trends were favourably affected by the high price of oil and by extensive deep-water exploration activities off the coasts of Brazil and West Africa.

Falck’s training competencies are based on more than 100 years of experience in rescue services, and Falck is the leading service provider in this field

36Falck has 36 training centres in 15 countries on five continents.

Falck provides rescue and safety courses and other safety servic-es in 15 countries on five continents. This happens at 28 train-ing centres aimed at the offshore industry and the maritime sector, but the chemical industry, the aviation industry and the armed forces in Denmark and Sweden also make use of Falck’s facilities and services. In addition, Falck has eight land-based training centres in the Netherlands.

At all these centres, people are instructed in safe behaviour in order to avoid accidents in the workplace, and they are taught how to react correctly – also under extreme conditions – if accidents do occur.


In Norway, Falck Training has successfully increased revenue by 8% since 2010 in spite of strong competition, mainly because customers see the value of safety courses of a high quality.

Falck generally saw substantial growth in the field of manage-ment of major emergencies, where the training provided is based on a number of realistic scenarios.

Falck opened a new training centre at Bremerhaven, Germany, specially designed for safety training of employees in the wind turbine industry. In addition, a 24-metre-high tower for wind turbine training was built at Falck’s training centre at Teeside in the United Kingdom.

Falck now also offers its courses to the oil and gas industry in and around the Caspian Sea, as Falck has acquired a majority interest in Caspian Safe, a company that operates a training cen-tre at Baku in Azerbaijan. This has given Falck a presence with training activities in all important geographies for deep-sea oil and gas exploration.

In 2011, Falck continued its endeavours to create a standardised high level of quality within safety and rescue operations in the offshore industry. This was partly done by constantly contribut-ing to the development of new training methods and technolo-gies. Also in 2011, eight Falck training centres were certified to the ISO 18000 standard.

At three training centres – in Malaysia and the United Kingdom – Falck now offers health checks to course attendees before they leave for their offshore jobs. Close to 10,000 attendees availed themselves of this opportunity in 2011.

A total of 36,000 people took courses at Falck’s fire-training centres, roughly the same number as in 2010. One-third of them were professional firemen taking advanced fire-fighting courses involving use of the latest technology.

The total number of course attendees at all the 36 Falck training centres was 240,000, which was 21,000 more than in 2010.

Despite the year-on-year growth in revenue, operating profit dropped from DKK 142 million to DKK 128 million, mainly caused by one-off items in 2010 and a provision taken in 2011 for closing down the centre in the United Arab Emirates.

RevenueDKK million

1,000

800

600

400

200

0

07 08 09 10 11

Organic growth%

10

8

6

4

2

0

-2

07 08 09 10 11

Number of course participants

250,000

200,000

150,000

100,000

50,000

0

07 08 09 10 11


Training Revenue 1,019 958Revenue growth 6.4% 4.0%Organic growth 6.9% -1.5%EBITA 128 142EBITA margin (%) 12.6% 14.8%


Corporate social responsibility

At Falck, corporate social responsibility is at the very heart of our business and thus deeply integrated into our business models and operations. Falck’s mission is to prevent accidents, diseases and emergency situations, to rescue and assist people in emergencies quickly and competently and to rehabilitate people after illness and injury. It naturally follows that we contribute substantially to the development of the social and healthcare infrastructure of the societies our organisation is a part of.

Falck’s approach is to raise the social and healthcare bar with the resources available. Moreover, we collaborate with autho-rities, professionals, business partners and other stakeholders in an endeavour to improve quality and efficiency and invest in training of employees and the development of technology. This raises the level of health, safety and security in these local communities while also contributing to our business opportu-nities.

The Falck Code of Conduct

As a minimum, all business entities must comply with applicable legal requirements and the code of conduct defined for the Falck Group.

The Falck Code of Conduct is based on the principles of the United Nations Global Compact, which cover the following areas:

Human rights

The company should

•supportandrespecttheprotectionofinternationallyproclaimed human rights within the area in which it operates and has influence.

•makesurethatitisnotcomplicitinhumanrights abuses.

Labour standards

The company should

•upholdthefreedomofassociationandeffective recognition of the right to collective bargaining.

•supporttheeliminationofallformsofforcedand compulsory labour.

•supporttheeffectiveabolitionofchildlabour.

•supporttheeliminationofdiscriminationinrespect of employment and occupation.

Environment

The company should

•supportaprecautionaryapproachtoenvironmentalchallenges.

•takestepstopromotegreaterenvironmental responsibility.

•encouragethedevelopmentanddiffusionof environmentally friendly technologies.

Anti-corruption

The company should

•worktocounterallformsofcorruption,including extortion and bribery.


Corporate social responsibility (CSR) at Falck is defined as business practices that improve our workplaces or benefit society beyond what we are obliged to do by law. Corporate social responsibility is at the heart of Falck’s business, and both social and environmental considerations are deeply rooted in and integrated into Falck’s business models and operations when we interact with our local communities, our business partners, our customers and our other stakeholders in our endeavours to meet social, healthcare and safety needs.

This approach applies to all Falck’s business areas. In the field of ambulance services, for instance, it is vital that we develop ambulance-to-hospital video transmission technology that gives us a competitive edge and raises the quality of pre-hospital ser-vices. In the training of offshore employees, we are also working towards higher standards, and this makes for a higher level of safety in the oil and gas industry while also bringing in more people to attend courses at Falck training centres. Falck Health-care provides a range of services which ensure that fewer peo-ple get ill and that people on sick leave can recover and return to their jobs: this benefits not only the workers themselves but also their employers and society in general. Another example of how we live up to our corporate social responsibility is the prod-uct called Falck Sirius provided by our Assistance business. It is a technology for bus companies that helps save fuel, improve traf-fic safety and ensure more environmentally responsible driving.

Human rights and labour standardsIn addition to compliance with the UN Global Compact de-scribed above, Falck has defined policies regarding employment and working conditions as well as health and safety at work. They describe the framework under which the employment relationship must be established in relation to compensation, working hours, overtime, etc. In addition, Falck undertakes to continuously work to improve the working conditions, including safety at work.

EnvironmentFalck’s policy is to comply with all environmental requirements in our countries of operation and to seek to reduce the adverse environmental impact of our operations.

Anti-corruptionFalck has a zero-tolerance policy with respect to corruption, which comprises extortion, fraud and bribery.

As part of our increased internationalisation, we will be increas-ing our focus on laying down anti-corruption guidelines in the coming year. In addition, we have initiated a process aimed at implementing a formalised whistleblower system.

Monitoring

Each company of the Falck Group has individual responsibil-ity for complying with and implementing the principles of the Falck Code of Conduct. Compliance with this will be monitored by the persons responsible for the individual business areas. In addition, in connection with controller visits, Group Finance monitors whether any conditions exist that may be contrary to the Falck Code of Conduct. Through their representation in a worldwide workers council, the employees have the oppor-tunity to bring up matters which they do not consider to be in accordance with the Falck Code of Conduct.

The overall responsibility for the company’s CSR procedures have since the end of 2011 been anchored in the Group Man-agement. In addition to a representative from the Executive Committee, the CSR Committee consists of the persons respon-sible for Group Communications, the Legal Department, HR and Controlling.


Activities during the year

At Falck, most of the value creation is generated by the employ-ees, who are the primary resources of the organisation. The Group therefore focuses its CSR activities on that area. Falck is people who help people. Falck’s employees can only provide optimal assistance to the people around them – and thus con-tribute to Falck’s business – if they receive support from their employer. For this reason, we have taken a number of steps, adapted to local customs, to contribute to employee welfare that goes beyond what is required by law.

These initiatives include activities that can help prevent and remedy both physical and psychological injuries that may arise in connection with work.

Physical injury mainly relates to musculoskeletal injuries such as back injury. To prevent this type of injury, Falck offers interdis-ciplinary treatment to employees who experience musculoskel-etal problems as a result of work-related tasks.

Ways to change work processes to reduce the risk of injury are also considered regularly.

Psychological problems and injury may arise as a result of the scenes rescue officers sometimes witness in connection with incidents such as traffic accidents. In 2011, we started a project to ensure that all Falck Group employees have the opportunity to participate in debriefing sessions with a psychologist at the same level as has been provided in countries where Falck has had operations for a number of years.

In addition to the above, substantial resources are invested in ensuring that Falck employees receive supplementary training as well as training to maintain their skill level; this ensures a con-tinuing development of Falck’s quality of service.

Moreover, there is a growing focus on giving people with a less than strong connection to the labour market an opportunity to gain employment by adjusting the work they do in such a way as to increase their working capacity in the longer term.

The initiatives described above help improve job satisfaction and give people a better chance of handling a job. This results in a low level of absenteeism: about 4% for the Group as a whole. We see corporate social responsibility as an important part of interacting with our business partners and customers in both the public and private sectors.

Falck’s policy is to comply with all environmental requirements in our countries of operation and to seek to reduce the adverse environmental impact of our operations


Corporate governance

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

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

Although Falck is not a publicly listed company, the Group complies to a great extent with the corporate governance rec-ommendations applicable to companies listed on the NASDAQ OMX Copenhagen stock exchange. However, certain recom-mendations are considered mainly to be relevant to a company with a broader ownership.

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

The Board of Directors acts in compliance with applicable legisla-tion and meets a minimum of five times per year and in special cas-es. The Board of Directors reviews the Group strategy once a year.

Members of the Board of Directors are elected annually.

There are three employee representatives from the Group on the Board of Directors of Falck A/S. Moreover, employee representa-tives on the Board of Directors of the subsidiary Falck Danmark A/S are invited to and participate in the board meetings of Falck A/S.

The Board of Directors of Falck A/S consists ofLars Nørby Johansen (Chairman)Thorleif Krarup (Deputy Chairman)Steen HemmingsenSøren Thorup SørensenJohannes DueHenrik PoulsenVagn Flink Møller Pedersen (elected by the employees)

Jan Heine Lauvring (elected by the employees)Per Aastrup (elected by the employees)Mette Rosenfeldt (elected by the employees of Falck Danmark A/S)

Thorleif Krarup and Steen Hemmingsen represent the principal shareholder of the Falck Group, the Lundbeck Foundation. The other board members are independent of the Falck Group.

Audit CommitteeThe Audit Committee monitors the Group’s financial reporting process, accounting policies, statutory auditing of the annual report and the effectiveness of the internal control and risk management systems. In addition, the Committee makes rec-ommendations on these issues to the Board of Directors and fol-lows up, on behalf of the Board of Directors, on the implementa-tion of initiatives to be initiated by the Executive Management Board. The Committee receives information from a number of head office departments and from the company’s auditors.

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

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

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

Employee investmentIn order to attract and retain the Group’s management com-petencies, the remuneration paid to members of the Executive Management Board and senior employees reflects the work they do, the value they create and what their peers in comparable companies receive. In order to ensure that the interests of the Group’s Management and the shareholders coincide, a number


of senior management employees have been offered to invest in the Falck Group. A substantial number of senior management employees have elected to take this opportunity to invest in the Group, and the group of senior management employees, exclud-ing the members of the Executive Management Board, thus hold 2.94% of Falck Holding A/S (the parent company of Falck A/S).

The members of the Executive Management Board hold a total of 10.25% of the shares of Falck Holding A/S

Moreover, all employees in Denmark were granted free em-ployee shares in Falck A/S in 2006.

Risk managementIn Falck, risk management is considered an important and natu-ral element of the work to realise our goals and strategy. There are risks inherent in our day-to-day activities, in implementation of the strategy defined and in the continuous exploitation of business opportunities, so the handling of these risks is consid-ered a natural and integral part of day-to-day work and a way of ensuring stable and reliable growth.

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

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

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

Business procedures and internal controls include, among other things, segregation of functions and areas of responsibility,

descriptions of functions, procedures, control measures and analytical controls.

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

The monthly reporting from all companies of the Group is consolidated into the Group financial statements. In addition to the consolidation of relevant line items, this process includes an analytical review of individual line items and a performance comparison to the previous year and to forecasts. The analysis is carried out at Group, company as well as business-area level, whereby it is ensured, among other things, that the account-ing policies are consistently applied and there is correlation between activity performance and the financial reporting. The monthly reporting to the Board of Directors and the Executive Management Board is prepared based on the consolidation, in-formation received, analyses and information obtained.

Both the consolidation and the analyses are performed by em-ployees who are accounting specialists who have insight into the accounting context of the transactions included in the con-solidation. Most of these specialists have a professional back-ground in auditing. In addition, each business area has business controllers who have a deeper insight into the business aspects of the activity and its performance. As a supplement to the con-tinuing dialogue, meetings are held five times a year between the management of each business area and the Executive Man-agement Board, at which the business area and financial perfor-mance is reviewed and discussed.

In addition to the processes described above, the group finance function pays routine visits to the companies of the Group in order to ensure that necessary business procedures and internal controls have been established in respect of the activity so as to ensure true and fair reporting to the Group. The results of each visit are reported to the Executive Management Board as well as the management of the individual business area, and it is ensured that any improvements proposed are subsequently implemented. Moreover, annual reporting is provided to the Board of Directors’ Audit Committee containing a review of the visits during the year, the results thereof, determination of special areas of focus and the selection of the companies to receive visits during the next period.


Financial review

Falck’s revenue grew from DKK 8,367 million in 2010 to DKK 10,193 million in 2011, equivalent to a growth rate of 21.8%, of which organic growth accounted for 3.6%. The revenue growth and organic growth met Management’s expectations. The per-centage of Group revenue generated outside Denmark rose to 46.4% (2010: 36.7%), and the growth rate for markets outside Denmark was 53.9%, of which organic growth accounted for 5.5%. The rate of organic growth in Denmark was 2.6%.

Operating profit before costs and amortisation from business combinations and exceptional items (EBITA) was DKK 980 mil-lion (2010: DKK 839 million), which was in line with our guid-ance. This brought EBITA growth to 16.8%. The increase in EBITA was attributable to growth in the business areas Emergency, Assistance and Healthcare. The EBITA margin was 9.6% (2010: 10.0%). The year-on-year change in EBITA was mainly attribut-able to Training and significant growth in revenue from the Emergency business, for which the operating margin is lower than in the other business areas.

Profit for the year rose by 12.7% to DKK 516 million (2010: DKK 458 million).

Falck generated a free cash flow of DKK 898 million in 2011 (2010: DKK 842 million), representing a cash conversion rate of 91.6% (2010: 100.4%) in terms of conversion of EBITA into cash.

New financial reporting standardsA number of new financial reporting standards and interpreta-tions have been implemented with effect for the financial year 2011. None of the new standards and interpretations have af-fected recognition and measurement in 2011 nor earnings per share and diluted earnings per share.

See note 1 to the consolidated financial statements for a com-plete overview of new financial reporting standards and inter-pretations implemented with effect for the financial year 2011.

Basis of presentationThe financial review is based on the financial highlights and key ratios on pages 2 and cannot be derived directly from the con-solidated financial statements.

Group performance in 2011

Consolidated income statementConsolidated revenue for 2011 was DKK 10,193 million, equiva-lent to a growth rate of 21.8%. The growth was mainly attribut-able to the acquisition of emergency operations in the United States and South America. The organic growth rate was 3.6%. During the past five years, revenue has grown by an average of 13.6%, of which organic growth accounted for 5.9%.

Other operating income amounted to DKK 48 million (2010: DKK 70 million). This was attributable to a fall in gains from sales of non-current assets as compared with 2010.

EBITA was DKK 980 million (2010: DKK 839 million), equivalent to an EBITA margin of 9.6% (2010: 10.0%).

Costs and amortisation from business combinations totalled DKK 89 million (2010: DKK 50 million). The year-on-year in-crease was mainly attributable to higher amortisation charges as a result of the acquisitions made in the United states and South America and costs related to business combinations.

Revenue and organic growthDKK million %

10

9

8

7

6

5

4

3

2

1

0

10,000

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

2007 2008 2009 2010 2011

Organic growth Revenue


Exceptional items amounted to an income of DKK 82 million (2010 and expense of DKK 26 million) and related to a gain of DKK 242 million on the sale of securities and an impairment write-down of DKK 142 million on the investment in the subsidi-ary that provides emergency services in Brazil, as it has been decided to focus on the private and business markets in future as a basis for generating growth in Brazil. In addition, costs were incurred in relation to changes in the consortium of owners of Falck.

Investments in associates generated a loss of DKK 1 million (2010: DKK 0 million).

Financials amounted to a net expense of DKK 272 million (2010: DKK 122 million). The increase in net financial expenses was attributable to one-off items in connection with the refi-nancing of the Group following the sale of Falck A/S to Falck Holding A/S. Moreover, interest expenses were higher in 2011 than in 2010 as a result of loans obtained in connection with the acquisitions made during the year.

Profit before tax was DKK 700 million (2010: DKK 641 million). The increase was due to the improvement in EBITA and to ex-ceptional items, however, this improvement was partially offset by higher financial expenses.

Tax on the profit for the year was DKK 184 million (2010: DKK 183 million), equivalent to an effective tax rate of 26.2% (2010: 28.6%). The lower tax rate was primarily the result of non-taxable exceptional items and an increase in non-deductible costs related to acquisitions. Adjusted for this, the effective tax rate was 28.8% in 2011. Out of the total tax on the profit for the year, tax on the Danish operations amounted to DKK 136 mil-lion (2010: DKK 139 million).

Profit for the year rose by 12.7% to DKK 516 million (2010: DKK 458 million).

Normalised profit after tax for the year rose by 6.6% to DKK 561 million (2010: DKK 527 million).

Consolidated cash flow statementThe free cash flow was DKK 898 million (2010: DKK 842 mil-lion). The free cash flow as a percentage of EBITA (the cash con-version rate) was 91.6% (2010: 100.4%).

The free cash flow in 2011 in was affected by higher operating profit, which was, however, partially offset by higher net invest-ments in property, plant and equipment.

EBITA and EBITA marginDKK million %

10

9

8

7

6

5

4

3

2

1

0

1,000

900

800

700

600

500

400

300

200

100

0

2007 2008 2009 2010 2011

Profit for the yearDKK million

500

450

400

350

300

250

200

150

100

50

0

2007 2008 2009 2010 2011

EBITA margin Operating profit before costs and amortisation from business combinations and exceptional items (EBITA)


In 2011, DKK 89 million (2010: DKK 45 million) out of total investments of DKK 326 million (2010: DKK 160 million) was invested in non-current assets related to expansion and start-up of activities. Investments in 2010 were affected by the divest-ment of non-current assets.

Income taxes paid amounted to DKK 150 million (2010: DKK 195 million). Income taxes paid declined mainly because part of income taxes for 2011 cannot be paid until in 2012 due to the Danish regulations on payment of taxes on account.

Interest paid amounted to DKK 230 million (2010: DKK 143 million). The increase as compared with 2010 was attributable to higher interest expenses as a result of loans raised in connec-tion with the acquisitions made during the year and refinancing of the Group in connection of the sale of Falck A/S to Falck Hold-ing A/S.

Payments for acquisitions totalled DKK 565 million (2010: DKK 720 million) and primarily related to the acquisitions of Lifestar Response in the United States and Grupo EMI in South America.

Dividends paid, changes in interest-bearing debt and other equity movements relating to shareholders generated a cash inflow of DKK 298 million (2010: DKK 166 million), which was primarily related to the refinancing in 2011.

Consolidated balance sheet

Net operating assetsConsolidated net operating assets excluding goodwill stood at DKK 472 million (2010: DKK 432 million).

The increase in net operating assets was attributable to acquisi-tions, which increased net operating assets excluding goodwill by DKK 116 million, and assets classified as held for sale, to which assets of DKK 98 million was reclassified.

Consolidated net operating assets including goodwill stood at DKK 6,068 million (2010: DKK 5,364 million). The increase was attributable to the year’s additions of goodwill and intangible assets from acquisitions.

EquityEquity attributable to Falck A/S rose by 17.5% to DKK 2,025 mil-lion (2010: DKK 1,723 million). The increase primarily consisted of profit for the year attributable to Falck A/S of DKK 500 million less other comprehensive income after tax.

Non-controlling interests totalled DKK 69 million (2010: DKK 65 million) and primarily related to non-controlling interests in the training operations in Nigeria and emergency operations in Spain and Slovakia.

EBITA, Free cash flow and Cash conversion rateDKK million %

150

125

100

75

50

25

0

1,200

1,000

800

600

400

200

0

2007 2008 2009 2010 2011

Net operating assets excluding goodwillDKK million

700

600

500

400

300

200

100

0

2007 2008 2009 2010 2011

Cash conversion rate Free cash flow

Operating profit before costs and amortisation from business combinations and exceptional items (EBITA)


Net interest-bearing debtThe Group’s net interest-bearing debt increased by DKK 310 million to DKK 3,259 million from a starting point of DKK 2,949 million at year-end 2010. The increase was due to loans raised in connection with the acquisitions made during the year and debt in the companies acquired.

Provisions for acquisitions of operations and non-controlling interestsContingent consideration and earn-outs payable totalled DKK 39 million (2010: DKK 146 million). The decline was attribut-able to payments and adjustments relating to prior-year acquisi-tions. Provisions for acquisitions of non-controlling interests were recognised in the amount of DKK 516 million (2010: DKK 311 million) based on expected earnings at the time of use. The year-on-year increase was primarily attributable to the acquisi-tion of Grupo EMI. If the non-controlling shareholders in the relevant subsidiaries do not exercise their options to sell their shares, Falck has an equivalent option to buy the shares in an agreed period.

Acquisitions

The Falck Group’s most important acquisitions in 2011 were:

Lifestar Response CorporationIn January, the Group acquired all the shares of Lifestar Re-sponse Corporation in the United States. Lifestar operates ambulance services in seven states on the US East Coast and in Washington D.C. and operates 440 ambulances and similar vehicles.

EMI Holdings Managements S.A. (Grupo EMI)In March, the Group acquired 63.1% of the shares of EMI Hold-ings Management. The company is the parent company of the

leading group of ambulance and medical companies in South America (Grupo EMI), which is headquartered in Colombia and has operations in Uruguay, Venezuela, Ecuador, El Salvador and Panama.

StarowkaIn March, the Group acquired 75% of the shares of Starowka in Poland. The company operates four medical clinics with general practitioners and specialists and out-patient treatment in War-saw and the central part of Poland.

HealthCare DanmarkIn May, the Group acquired HealthCare Danmark, the second-largest private provider of healthcare solutions in Denmark. The company operates healthcare clinics and manages healthcare schemes for employees in private-sector and public-sector com-panies.

Servicio Emergencias Regional (SER)In August, the Group acquired all the shares of SER, a Colom-bian-based ambulance company, which operates in three large cities in Colombia and has a substantial network of physicians.

Kranken-Transport HerzigIn September, the Group acquired all the shares of Kranken-Transport Herzig, a company operating ambulance services in North Rhine-Westphalia, Germany.

Acquisitions after the balance sheet dateVL Transport Sanitari S.L.U and Grup VL Serveis Sanitaris, S.L.U. (VL)In February, the Group acquired a 75% stake in VL together with its partner in Spain, Grupo Dominguis. VL operates ambulance services in Catalonia, Spain.

Revenue generated in North and South America was DKK 1,679 million, up from DKK 318 million in 2010


Performance by area

DenmarkRevenue in Denmark was DKK 5,459 million (2010: DKK 5,292 million), equivalent to a 3.2% increase, of which 2.6% was or-ganic growth. The increase was attributable to Emergency and Assistance, of which travel assistance, in particular, generated revenue growth in 2011.

EBITA was DKK 569 million (2010: DKK 542 million). In addition to the growth in revenue, performance was also affected by lower costs in connection with assistance provided under sub-scriptions as compared with 2010, as severe winter weather was only seen in the first quarter of 2011, whereas unusually severe winter weather was seen in both the first and fourth quarters of 2010.

The EBITA margin for 2011 was 10.4% (2010: 10.2%).

Nordic regionRevenue from operations in the Nordic region (excluding Den-mark) increased by DKK 164 million or 10.6% to DKK 1,705 mil-lion. The rate of organic growth was 3.3% and was generated by the Assistance and Emergency business.

EBITA was DKK 127 million (2010: DKK 108 million), equivalent to an EBITA margin of 7.4% (2010: 7.0%). The increase in EBITA and the EBITA margin was mainly attributable to higher earn-ings from the Assistance business in Norway and from all busi-ness areas in Sweden.

EuropeRevenue in Europe (excluding Denmark and the Nordic re-gion) totalled DKK 1,212 million (2010: DKK 1,087 million), equivalent to a growth rate of 11.5%, of which organic growth accounted for 9.2%. The growth was primarily attributable to an increase in the level of activity in the Emergency business in Poland, Slovakia and Spain, whereas lower activity was seen in the Emergency business in the Netherlands in 2011.

EBITA was DKK 117 million (2010: DKK 121 million), equivalent to an EBITA margin of 9.7% (2010: 11.1%). The fall in EBITA and the EBITA margin was due to lower earnings in Poland as a re-sult of costs incurred to participate in tender rounds and in the Netherlands as a result of lower earnings.

North AmericaRevenue generated in North America was DKK 1,073 million (2010: DKK 175 million). The increase in revenue was attribut-able to the acquisition of Care Ambulance in December 2010 and Lifestar Response in January 2011. Organic growth was negative at the rate of 10.2%, which was due to lower activity in the Training business in the United States. The Emergency activities in the United States are not included in the calculation of organic growth as acquisitions are not included in the calcu-lation until they have been owned for 12 months.

EBITA was DKK 64 million (2010: DKK 17 million), equivalent to an EBITA margin of 6.0% (2010: 9.7%). The lower EBITA margin was mainly attributable to the fact that the Emergency activi-

Revenue, EBITA, operating margin and organic growth by geographical area

DKK million Revenue EBITA Operating margin (%)

Organic % of total1) 2011 2010 2011 2010 2011 2010 growth

Denmark 53.6 5,459 5,292 569 542 10.4 10.2 2.6 Nordic region 16.7 1,705 1,541 127 108 7.4 7.0 3.3 Europe 11.9 1,212 1,087 117 121 9.7 11.1 9.2 North America 10.5 1,073 175 64 17 6.0 9.7 (10.2)South America 5.9 606 143 91 31 15.0 21.7 23.0 Rest of the world 1.4 138 129 12 20 8.7 15.5 9.1 Group total 100.0 10,193 8,367 980 839 9.6 10.0 3.6

1) Revenue in DKK for 2011 as a percentage of consolidated revenue


ties acquired have a lower EBITA margin than the Training activi-ties already operated in the area.

South AmericaRevenue generated in South America was DKK 606 million (2010: DKK 143 million). The increase was primarily attributable to the acquisition of Grupo EMI. The rate of organic growth was 23.0%, which was attributable to an increase in Training activi-ties in Brazil and in Trinidad & Tobago. Organic growth from Grupo EMI is not included in the calculation of organic growth until the companies have been owned for 12 months.

EBITA rose to DKK 91 million (2010: DKK 31 million), which was attributable to the acquisition of Grupo EMI.

The EBITA margin for 2011 was 15.0% (2010: 21.7%).

Rest of the worldRevenue in the rest of the world was DKK 138 million (2010: DKK 129 million), equivalent to a rate of organic growth of 9.1%, which was mainly attributable to the Training activities in Nigeria, Malaysia and Thailand. In 2011, the level of activity de-clined in the United Arab Emirates, which resulted in a decision to reduce the size of the training centre in that country in 2012.

EBITA dropped to DKK 12 million (2010: DKK 20 million) as a re-sult of costs incurred to close down the existing training centre in the United Arab Emirates.

Outlook for 2012

The Group expects revenue for 2012 to be at the level of DKK 11 billion, partly attributable to an increase in the rate of organ-ic growth as compared with 2011. A minor increase in the EBITA margin is expected in 2012.

Forward-looking statements

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

Other matters

In July 2011, Falck got new owners as the holding company, Falck Holding A/S, acquired 98.8% of the shares of Falck A/S. The employees hold 1.1% of the shares of Falck A/S as a result of a grant of employee shares in 2006.

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

Share holders of Falck Holding A/S

Name Ownership

Lundbeckfond Invest A/S, Hellerup 57.36%KIRKBI Invest A/S, Billund 20.00%Liberatio A/S, Aarhus (owned by executive management) 10.25%Other 12.39%

Events after the balance sheet date

On 9 February 2012, Falck signed an agreement to acquire 75% of the shares of VL Transport Sanitari and Grup VL Serveis Sani-taris for DKK 108 million. The companies operate ambulance services in Catalonia, Spain.

On 17 February 2012, Falck signed an agreement on the divest-ment of the Brazilian emergency activities. The divestment will not affect profit for 2012.


Risk factors

The Board of Directors and the Executive Management Board of Falck regularly monitor and assess the Group’s overall risk ex-posure relative to probability and implications as well as estab-lished risk measures. The Board of Directors and the Executive Management Board monitor developments in risks relative to an established risk strategy.

This description of risk factors includes examples of the risks which Management estimates may have an impact on the Group’s future growth, activities, financial position and results of operations.

The following sections do not contain an exhaustive description of all risks associated with the activities of the Group. The risk factors are divided into business risks and financial risks and are described in random order.

Business risks

Political risks Some of Falck’s activities are based on contracts with public au-thorities. Falck’s opportunity of renewing existing contracts and winning additional contracts is dependent on the political deci-sion-making process with regard to outsourcing of public-sector operating activities. If Falck does not have the opportunity to renew or successfully tender for these contracts, or if contracts are terminated, it may therefore have a material adverse impact on Falck’s business.

Image Falck has a strong image built up over a long period of time which to some extent is the product of Falck operating in a number of areas that are subject to a high level of public inter-est. This strong image is of material importance to the Group’s ability to retain and develop Falck’s activities. There is conse-quently very high focus on ensuring that Falck operates morally and ethically correctly and with a high quality of the services provided.

Cost structureFalck’s activities are labour-intensive and consequently af-fected by the cost of labour, pensions, regulations on working hours, social security contributions and other employee ben-

efits provided to Falck’s employees. Falck may be affected by non-acceptance by the market of price increases explained by increases in payroll costs. However, historically, it has been pos-sible to include a large proportion of increases in payroll costs in Falck’s pricing.

Especially in the Assistance business and to some extent in the Emergency business in South America and in the Healthcare business, the costs are also dependent on the extent to which customers use the resources provided for in the subscription contracts. For instance, increased use of assistance by subscrib-ers of roadside assistance will entail increased costs related to such responses. In the Emergency business in North America, activities are almost entirely based en payment per response. Consequently, there can be no guarantee that the level of activ-ity is sufficient to cover the costs of the level of preparedness established.

Attracting and retaining employeesFalck relies on being able to attract and retain employees with special competencies and experience in order to achieve its business goals. The special competencies are to a great extent built up during the employment relationship. The Group has historically had a low staff turnover rate, but continually imple-ments initiatives both locally and in the Group as a whole aimed at ensuring that Falck continues to be an attractive and well-reputed organisation.

GrowthAn important element of Falck’s business strategy is to ex-pand and grow in new markets or product areas, also through acquisitions. However, persistently high growth may result in pressure, for instance on management resources. Thus, Falck’s ability to generate growth depends on its ability to retain and strengthen management, attract, train and retain its staff, and on the organisation’s ability to continuously implement and optimise operational, financial and other management informa-tion systems in a timely manner.

Growth also depends on Falck’s ability to continue to attract new customers and retain a substantial number of its existing customers and on its continued ability to offer products adapt-ed to the conditions on the individual markets.


Dependence on IT and communications systemsFalck’s business model and operations are to a great extent de-pendent on well-functioning IT and communications systems. Falck’s central systems handling operations are designed to withstand power and data-line breakdowns and similar events to the greatest possible extent. Historically, the operational reli-ability of Falck’s systems has been very high, and the individual systems are continuously optimised.

CompetitionOne of the characteristics of Falck is that there are local or global competitors within the individual business area, but no competitor matches Falck’s product portfolio. However, there is nevertheless a risk that a major competitor with the necessary capital resources may set out to conquer markets or business areas in which Falck operates.

In the field of the Assistance business, the existing competitors are mainly marketing/franchise networks, whereas in the rest of Europe there are a number of large assistance operators run as membership clubs and by insurance companies.

In the field of the Emergency business, there are very few private ambulance operators, and none of them operate inter-nationally. In North America, however, there are two competi-tors who are larger than Falck as well as a number of small and medium-sized ambulance companies. Falck seeks to position itself in the market as a company focused on meeting customer demand through close interaction with and a high level of qual-ity based on the requirements defined by customers. Outside North America, Falck’s competitors are often small operators. In the private fire-fighting business in Denmark, competitors are mainly municipal fire services. Internationally, Falck focuses on industrial fire services, where customers have typically previ-ously used in-house corporate fire services.

The Healthcare business is characterised by a number of small competitors, especially in Denmark, whereas the market in Sweden is more mature and thus characterised by a number of large competitors.

In the Training business, there are only few global training operators, whereas there are often small local training centres in the local markets. Falck considers it an advantage that it is able to serve customers globally according to a uniform, high standard.

Financial risks

Interest rate and foreign exchange riskThe Group’s interest rate risk is mainly affected by the Group’s overall financing. Based on the current market situation, the Group’s Executive Management Board and the Board of Direc-tors have decided to convert 77% of the overall financing to a fixed three-year rate of interest via interest rate swaps. The rest of the overall financing is based on short-term interest rates.

The interest rate exposure is hedged by interest rate swaps during the hedging period to the effect that interest rates on the part of the debt that is denominated in DKK cannot exceed 1.40%, for debt denominated in EUR interest rates cannot ex-ceed 1.17%, and for debt denominated in USD interest rates cannot exceed 0.55%.

Credit institutions, floating-rate loans


DKK 805 2.271 EUR 25 855 USD 157 249 Other 79 - Total 1.066 3.375

The Group is therefore only to a minor extent sensitive to fluc-tuations in market interest rates, and a fluctuation by 1% would change the interest expense for the year by DKK 11 million.

Sensitivity analysis, market-rate fluctuations of 1%


DKK 8 7 EUR - - USD 2 2 Other 1 - Total 11 9

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

The exchange rate exposure of the Group’s transactions is limited since subsidiaries outside Denmark largely operate in local currencies, to the effect that the revenues and most of the expenses of the individual subsidiaries are denominated in the same currency. The main exchange rate exposure faced by the


Group relates to the translation into Danish kroner of the finan-cial results and equity of subsidiaries.

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

In the event of a change in the DKK/EUR exchange rate by 1%, the Group’s debt would change by DKK 15 million, which would be recognised in the income statement. Fluctuations in the DKK/USD exchange rate will have no impact on the income statement or equity as the debt has been raised to hedge in-vestments in subsidiaries.

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

Credit riskWhen entering into significant contracts, the Group makes a credit assessment of the customer in order to assess the poten-tial credit risk. Trade receivables are monitored and evaluated on a continuing basis in order to assess any need to make provi-sions for bad debts.

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

Subscription sales to private and corporate customers are not deemed to involve material risks to the Group as the amounts are small for the individual subscriptions, and general as well as individual write-downs are made for anticipated bad debts.

Falck’s entry on the ambulance market in the United States has increased the Group’s credit risk as payments for ambulance services are collected directly from the patient transported if the patient does not have health insurance or is covered by a public insurance scheme. Collection may be difficult, especially in the event of emergency transport operations.

Liquidity riskThe Group’s liquidity risk primarily concerns its ability to meet its obligations to pay its employees and creditors and to service its debts. The Group continuously monitors its free cash flow in order to assess its liquidity risks. Certain of the Group’s loans,

including the debt of Falck A/S, are subject to certain loan covenants, and the Group continuously monitors whether the covenants are observed.

The Group’s cash reserve comprises cash and cash equivalents and unused credit facilities. The purpose of the cash resources is to allow the Group to operate adequately in case of unfore-seen fluctuations in cash.

At year-end 2011, the Group’s unused credit facilities were in the region of DKK 960 million. Of this amount, DKK 400 million is only available for acquisitions. With the addition of available cash and cash equivalents of DKK 962 million, total cash re-sources were in the region of DKK 1,922 million. Management believes that the Group’s cash resources are fully sufficient.

Capital structureThe Group is not subject to any general capital requirements other than standard statutory requirements. The company’s share capital is not divided into share classes. The capital struc-ture has been determined based on an assessment of how large a debt the Group is able to service in a suitable manner as well as the amounts of earnings and cash flows generated in the Group in view of the Group’s growth expectations and ambitions.

The Group is financed by an overall syndicated loan raised to-gether with Falck Holding A/S and Falck Danmark A/S. The loan terms require that certain financial performance indicators are met. All loan terms were met in 2011. The outstanding debt of the Falck A/S Group was DKK 3,806 million as at 31 December 2011. The outstanding debt rose by DKK 760 million in the course of 2011 as a result of new debt raised in connection with acquisitions. Through regular instalments payable on the syndi-cated loan in the period 2012 to 2017, the debt will be reduced to DKK 1,900 million, which must be repaid in full in 2018.

Moreover, the Group has mortgage loans totalling DKK 377 mil-lion and other interest-bearing debt of DKK 168 million.

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

As at 31 December 2011, the Group’s net interest-bearing debt stood at DKK 3,259 million, while equity stood at DKK 2,025 million.



Notes to the balance sheet

15. Intangible assets 67

16. Property, plant and equipment 69

17. Investments in associates 70

18. Inventories 70

19. Trade receivables 70

20. Cash and securities 71

21. Equity, treasury shares and dividends 71

22. Pension obligations 72

23. Other employee obligations 74

24. Deferred tax 74

25. Provisions for acquisitions of operations

and non-controlling interests 75

26. Other provisions 76

27. Credit institutions 76

28. Other payables 78

29. Deferred income 78

Notes to the cash flow statement

30. Net financials 78

31. Investments in subsidiaries, non-controlling

interests and operations 78

32. Dividends paid to non-controlling interests 80

33. Other movements relating to shareholders 80

Supplementary notes

34. Contingent liabilities, contractual obligations

and collateral security 81

35. Financial instruments 82

36. Assets held for sale 88

37. Related parties 88

38. Events after the balance sheet date 89

Financial statements

Income statement 43

Statement of comprehensive income 44

Cash flow statement 45

Balance sheet 46

Equity statement 48

Notes to the financial statements

1. Accounting policies 49

2. Accounting estimates and judgments 59

3. Segment information 60

Notes to the income statement

4. Revenue 63

5. Other operating income 63

6. Fees to auditors appointed at the annual

general meeting 64

7. Staff costs 64

8. Amortisation and depreciation 65

9. Amortisation of intangible assets and

costs from business combinations 65

10. Exceptional items 65

11. Financial income 65

12. Financial expenses 65

13. Income taxes 66

14. Earnings per share 66

Contents of the Group financial statements


Income statement for the year ended 31 December

Note DKK million 2011 2010

4 Revenue 10,193 8,367 5 Other operating income 48 70 Cost of sales and external assistance (1,300) (1,149) 6 Other external costs (1,977) (1,537) 7 Staff costs (5,691) (4,655) 8 Amortisation, depreciation and impairment (382) (307)

Operating profit before exceptional items 891 789

Analysed as: Operating profit before costs and amortisation from business combinations

and exceptional items 980 839 9 Amortisation of intangible assets and costs from business combinations (89) (50) Operating profit before exceptional items 891 789 10 Exceptional items 82 (26)

PROFIT BEFORE FINANCIALS 973 763 17 Income after tax from associates (1) - 11 Financial income 38 33 12 Financial expenses (310) (155)

PROFIT BEFORE TAX 700 641 13 Income taxes (184) (183)

PROFIT FOR THE YEAR 516 458

PROFIT ALLOCATION Falck A/S 500 444 Non-controlling interests 16 14

TOTAL 516 458

14 EARNINGS PER SHARE Earnings per share (EPS) 5.4 4.8 Diluted earnings per share (DEPS) 5.3 4.6


Statement of comprehensive income for the year ended 31 December


Foreign exchange differences 33 86 Actuarial adjustment of pension provisions (3) 2 Value adjustment of currency hedging instruments (17) 13 Value adjustment of interest hedging instruments (8) 2 Settlement of interest hedging instruments 51 - Value adjustment of available-for-sale securities 25 180 Sale of securities, transferred to exceptional items (242) - Adjustment for hyperinflation 1 - 13 Tax on other comprehensive income (1) (38)

Other comprehensive income after tax (161) 245 Profit for the year 516 458

TOTAL COMPREHENSIVE INCOME 355 703

PROFIT ALLOCATION Falck A/S 341 687 Non-controlling interests 14 16

TOTAL 355 703


Cash flow statement for the year ended 31 December


Total revenue 10,241 8,437 Total costs (9,350) (7,648)

Profit before financials 891 789 8 Amortisation, depreciation and impairment 382 307

Profit before financials and amortisation, depreciation and impairment 1,273 1,096 Reversal of profit/(loss) on divestments of non-current assets (25) (52) Change in operating assets (127) (181) Change in intercompany balance with associates (36) (21) Change in operating payables 59 89 Change in provisions (14) (21)

Cash flow from operating activities before financials and tax 1,130 910 Exceptional items (5) (26) 30 Net financials (230) (143) 13 Income taxes paid (150) (195)

CASH FLOW FROM OPERATING ACTIVITIES 745 546

31 Investments in subsidiaries, non-controlling interests and operations (523) (648) Cash flows from hedging of net investments 6 (25) Divestments of subsidiaries, non-controlling interests and operations - 10 Investments in other shares and securities (31) (45) Sale of other shares and securities 331 - Investments in intangible assets (42) (27) Investments in property, plant and equipment (321) (374) Sale of property, plant and equipment 62 289 Investments in associates - (12)

CASH FLOW FROM INVESTING ACTIVITIES (518) (832)

32 Dividends paid to non-controlling interests (19) (29) 33 Other movements relating to shareholders 5 (283) Changes in interest-bearing outstanding balances with Group companies 9 - Interest-bearing debt raised 4,413 777 Repayment of and change in interest-bearing debt (4,110) (299)

CASH FLOW FROM FINANCING ACTIVITIES 298 166

Change in cash 525 (120)

Cash at beginning of year 439 538 Foreign exchange differences relating to cash (2) 21

20 CASH AT YEAR-END 962 439


Balance sheet as at 31 December


Assets

Goodwill 5,302 4,711 Intangible assets from acquisitions 345 261 Other intangible assets 122 97

15 TOTAL INTANGIBLE ASSETS 5,769 5,069

Land and buildings 722 712 Leasehold improvements 58 57 Fixtures and fittings, tools and equipment 845 795

16 TOTAL PROPERTY, PLANT AND EQUIPMENT 1,625 1,564

17 Investments in associates 15 23 Other investments 6 1 24 Deferred tax assets 78 75

24 TOTAL FINANCIAL ASSETS 99 99

TOTAL NON-CURRENT ASSETS 7,493 6,732

18 Inventories 60 60

19 Trade receivables 1,173 1,088 Receivables from associates 55 21 Other receivables 210 246 Prepayments 147 131 20 Securities 172 372 20 Cash 885 439

2,642 2,297

36 Assets held for sale 98 -

TOTAL CURRENT ASSETS 2,800 2,357

TOTAL ASSETS 10,293 9,089




Equity and liabilities

Share capital 46 46 Reserve for treasury shares (6) - Hedging reserve 9 (10) Currency translation reserve 29 (11) Reserve for value adjustments of available-for-sale financial assets - 217 Retained earnings 1,947 1,481

EQUITY ATTRIBUTABLE TO PARENT COMPANY 2,025 1,723

Non-controlling interests 69 65

21 TOTAL EQUITY 2,094 1,788

22 Pension obligations 2 - 23 Other employee obligations 29 32 24 Deferred tax 284 280 25 Provisions for acquisitions of operations and non-controlling interests 512 388 26 Other provisions 11 34 27 Credit institutions 4,233 3,159 Payables to Group companies 21 -

TOTAL NON-CURRENT DEBT 5,092 3,893

27 Credit institutions 83 601 25 Provisions for acquisitions of operations and non-controlling interests 43 69 26 Other provisions 12 20 Trade payables 607 581 Income taxes 51 40 Payables to Group companies 9 - 28 Other payables 873 803 29 Deferred income 1,331 1,294

3,009 3,408

36 Liabilities relating to assets held for sale 98 -

TOTAL CURRENT DEBT 3,107 3,408

TOTAL EQUITY AND LIABILITIES 10,293 9,089


Equity statement

Reserve for value adjustment Reserve of available- for Currency for-sale Non- Share treasury Hedging translation financial Retained controlling Total 2011 DKK million capital shares reserve reserve assets earnings Total interests equity

Equity at 1 January 2011 46 - (10) (11) 217 1,481 1,723 65 1,788

Equity movements in 2011Foreign exchange differences 35 35 (2) 33Value adjustment of currency hedging instruments (17) (17) (17)Settlement of interest hedging instruments 51 51 51Value adjustment of interest hedging instruments (8) (8) (8)Adjustment for hyperinflation 1 1 1Sale of available-for-sale securities (242) (242) (242)Value adjustment of available-for-sale securities 25 25 25Actuarial adjustment of pension provisions (3) (3) (3)Tax on other comprehensive income (7) 5 1 (1) (1)

Other comprehensive income - - 19 40 (217) (1) (159) (2) (161)Profit for the year 500 500 16 516

Total comprehensive income - - 19 40 (217) 499 341 14 355Increase in non-controlling interests' ownership share - 6 6Adjustment of provision for acquisition of non-controlling interests (44) (44) (44)Acquisitions of treasury shares (6) (6) (6)Issuance of warrants 11 11 11Dividend - (16) (16)

Total transactions with owners - (6) - - - (33) (39) (10) (49)

Total equity movements in 2011 - (6) 19 40 (217) 466 302 4 306

EQUITY AT 31 DECEMBER 2011 46 (6) 9 29 - 1,947 2,025 69 2,094

2010 DKK million

Equity at 1 January 2010 46 (8) (21) (62) 37 1,354 1,346 61 1,407

Equity movements in 2010 Foreign exchange differences 84 84 2 86Value adjustment of currency hedging instruments 13 13 13Value adjustment of interest hedging instruments 2 2 2Value adjustment of available-for-sale securities 180 180 180Actuarial adjustment of pension provisions 2 2 2Tax on other comprehensive income (4) (33) (1) (38) (38)

Other comprehensive income - - 11 51 180 1 243 2 245Profit for the year 444 444 14 458

Total comprehensive income - - 11 51 180 445 687 16 703Reduction in non-controlling interests' ownership share - (2) (2)Increase in non-controlling interests' ownership share - 3 3Losses on divestments and acquisitions of non-controlling interests (32) (32) (32)Adjustment of provision for acquisition of non-controlling interests 5 5 5Acquisitions of treasury shares (6) (6) (6)Disposals of treasury shares 14 16 30 30Buy back of warrants (307) (307) (307)Dividend - (13) (13)

Total transactions with owners - 8 - - - (318) (310) (12) (322)

Total equity movements in 2010 - 8 11 51 180 127 377 4 381

EQUITY AT 31 DECEMBER 20010 46 - (10) (11) 217 1,481 1,723 65 1,788


Notes to the Group financial statements

The annual report for the year ended 31 December 2011 includes both the consolidated financial statements of Falck A/S and its subsidiaries (the Group) and the separate financial statements of the parent company.

The annual report of Falck A/S is presented in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and additional Danish disclosure requirements for annual reports for accounting class C large. The annual report also complies with the International Financial Reporting Stand-ards issued by the IASB.

The Board of Directors and the Executive Management Board considered and approved the annual report for 2011 of Falck A/S on 16 March 2012. The annual report will be submitted to the shareholders of Falck A/S for adoption at the annual general meeting to be held on 26 April 2012.

The annual report has been prepared under the historical cost convention, except that the following assets and liabilities are measured at fair value: derivative financial instruments and financial instruments at fair value.

The annual report is presented in DKK rounded to the nearest million.

IMPLEMENTATION OF NEW FINANCIAL REPORTING REGULATIONS

Falck A/S has implemented the standards and interpretations that come into force for 2011. None of these have affected recognition and measurement and the presentation and clas-sification for 2011, nor are they expected to affect Falck A/S going forward.

FUTURE IFRS CHANGES

Standards and additions issued by the IASB which come into force after 31 December 2011 or which have not been adopted by the EU, and which have therefore not been imple-mented, comprise:

•IFRS 9 Financial instruments•IFRS 10 Consolidated financial statements•IFRS 11 Joint arrangements•IFRS 12 Disclosure of interests in other entities•IFRS 13 Fair value measurement•Revised IAS28 Investments in associates and joint ventures•Addition to IAS 1 Presentation of other comprehensive

income•Additions to IAS 19 Employee benefits

The implementation of these standards will result in ad-ditional note specifications and reclassifications but will not significantly affect recognition and measurement.

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

BASIS OF CONSOLIDATION

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

The Group financial statements are prepared on the basis of the financial statements of Falck A/S and subsidiaries by add-ing items of a like nature.

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

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

The line items of the financial statements of subsidiaries are fully consolidated in the consolidated financial statements. Profit for the year and equity attributable to non-controlling interests in subsidiaries that are not fully controlled is included in the consolidated profit and equity but stated as separate line items.

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

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

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

Note

1 Accounting policies



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

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

Any positive difference between the consideration and the val-ue of non-controlling interests in the acquiree and the fair val-ue of the previously held interests in the acquiree, on the one hand, and the fair value of the identifiable assets, liabilities and contingent liabilities, on the other hand, is recognised in the balance sheet as goodwill. Goodwill is not amortised, but is tested for impairment at least once a year. On acquisition, goodwill is allocated to the cash-generating units which will subsequently form the basis for future impairment tests. Any goodwill arising and any fair value adjustments made on the acquisition of a foreign company whose functional currency is not the same as the presentation currency used by the Group are treated as assets and liabilities of the foreign company and are translated on initial recognition to the foreign company’s functional currency at the exchange rate ruling at the transac-tion date. Any negative difference is recognised in the income statement on the date of acquisition

The consideration in a business combination consists of the fair value of the agreed purchase price. For business com-binations in which the agreement includes a provision on adjustment of the consideration conditional on future events (earn-out), the fair value of this part of the consideration is recognised at the date of acquisition. Any changes in the fair value of the contingent consideration after initial recognition are recognised in the income statement. Put options issued in connection with acquisitions, the value of which is contingent on future events, will be recognised as part of the considera-tion at the date of acquisition. The put options issued are subsequently measured at fair value. Any changes in the fair value of the issued put options after initial recognition are recognised in equity. Acquisition costs directly attributable to the acquisition are recognised in the income statement.

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

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

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

Non-controlling interestsOn initial recognition, non-controlling interests are measured either at fair value (including the fair value of goodwill related to non-controlling interests in the acquiree) or as non-con-trolling interests’ share of the acquiree’s identifiable assets, liabilities and contingent liabilities measured at fair value (excluding the fair value of goodwill related to non-controlling interests’ share of the acquiree). The basis of measurement of non-controlling interests is chosen on a transaction-by-transaction basis.

Acquisition and divestment of non-controlling interestsAny increase and reduction of non-controlling interests is accounted for as transactions with owners in their capacity as owners. As a consequence of this, any differences between the adjustment to the carrying amount of non-controlling interests and the fair value of the consideration received or paid is recognised directly in equity.

When put options are issued as part of the consideration for business combinations, the non-controlling interests receiving put options are considered to have been redeemed on the acquisition date. The non-controlling interests are removed and a liability is recognised at fair value on initial measure-ment. The fair value is determined as the present value of the exercise price of the option. The subsequent measurement is at amortised cost with recognition in equity of amortisation and value changes as they arise.

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1 Accounting policies (continued)



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

Foreign currency translation and hyperinflationA functional currency is determined for each of the reporting entities of the Group. The functional currency is the currency in the primary economic environment in which the reporting entity operates. Transactions in currencies other than the functional currency are transactions in foreign currencies.

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

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

The income statements of foreign subsidiaries are translated at the exchange rates ruling at the transaction dates, and the balance sheet is translated at the exchange rates ruling at the balance sheet date. An average exchange rate for the month is used as the exchange rate ruling at the transaction date to the extent that this does not significantly change the presentation of the underlying transactions. Exchange differences arising on the translation of the equity of foreign subsidiaries at the beginning of the year to the exchange rates ruling at the bal-ance sheet date and on the translation of income statements from the exchange rate ruling at the transaction date to the exchange rate ruling at the balance sheet date are recognised directly in other comprehensive income and classified in equity in a separate currency translation reserve. Exchange dif-

ferences are allocated between the parent company’s and the non-controlling interests' shares of equity.

However, for foreign subsidiaries and associates operating in hyperinflationary economies, revenue and costs are translated at the exchange rate ruling at the balance sheet date. Prior to the translation, the income statement and the non-monetary items of the balance sheet are restated taking into account the buying power of the functional currency based on infla-tion until the balance sheet date (inflation correction). The effect of the inflation correction is recognised in the currency translation reserve in equity. In the income statement, it is recognised in financials as a loss/gain on the monetary net position in the relevant entities. The assessment of when an economy is hyperinflationary is based on qualitative as well as quantitative factors, including whether the accumulated infla-tion over a three-year period is in the order of 100%.

Foreign exchange adjustments of balances that are consid-ered part of the overall net investment in companies with functional currencies other than DKK are recognised in the consolidated financial statements directly in other compre-hensive income and classified in equity in a separate currency translation reserve. Similarly, exchange gains and losses on the part of loans and derivative financial instruments effectively hedging the net investment in such companies and which ef-fectively hedge against corresponding exchange gains/losses on the net investment in the company are recognised directly in other comprehensive income and are classified in equity in a separate currency translation reserve.

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

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

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

On partial divestment of foreign subsidiaries without giving up control, a proportionate share of the currency translation reserve is transferred from the parent company shareholders’ to the non-controlling shareholders’ share of equity.

On partial divestment of associates and joint ventures, the proportionate share of the accumulated currency transla-tion reserve recognised in other comprehensive income is transferred to profit for the year together with the gain or loss on the divestment

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

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

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

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

Hedges of net investmentDerivative financial instruments entered into in order to effec-tively hedge investments in foreign subsidiaries are recognised in the balance sheet at the time they are entered into and are measured at fair value at the balance sheet date. Exchange gains and losses are recognised directly in equity as a separate hedging reserve.

Fair value hedgesDerivative financial instruments entered into in order to hedge other assets and liabilities denominated in foreign currency are recognised in the balance sheet at the time they are entered into and are stated at fair value at the balance sheet date.

Any market value adjustments of derivative financial instru-ments entered into to hedge other assets and liabilities are recognised in the income statement in the same line items as the transactions hedged.

Cash flow hedgesChanges in the part of the fair value of derivative financial in-struments designated as and qualifying for hedging of future cash flows, and which effectively hedge changes in the value of the hedged item, are recognised in other comprehensive income in a separate hedging reserve in equity. When the hedged transaction is realised, any gains or losses regarding such hedging transactions are transferred from equity and recognised in the same financial item as the hedged item. When proceeds from future borrowings are hedged, any gains or losses regarding hedging transactions are, however, trans-ferred from equity over the maturity period of the borrowings.

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

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

INCOME STATEMENT

Revenue represents the value of services and goods delivered and invoiced subscriptions attributable to the financial period, and is recognised in the income statement if delivery and transfer of risk to the buyer have taken place before year-end, and if the income can be reliably measured and is expected to be received.

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

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

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

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

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

Cost of sales and external assistance represents costs incurred and external assistance used to generate the year’s revenue.

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

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

Goodwill impairment represents impairment of goodwill based on an annually performed impairment test of each cash-generating unit.

Exceptional items represent material items of a non-recurring nature that are not directly attributable to the Group’s ordi-nary activities.

Income from investments in associates are recognised in the income statement at the proportionate share of the results after tax and non-controlling interests of the associates and after elimination of the proportionate share of intra-group profits/losses.

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

INCOME TAXES

Falck A/S and all Danish subsidiaries are jointly taxed with Lundbeckfond Invest A/S, which is the management company for the national joint taxation and consequently settles all payments of income taxes with the tax authorities in respect of the jointly taxed companies.

Current Danish corporation tax is allocated among the jointly taxed companies according to the taxable income of these companies. The jointly taxed companies pay tax under the on-account tax scheme.

Income tax for the year, consisting of current tax for the year and changes in deferred tax, is recognised in profit for the year, in other comprehensive income, or directly in equity.

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

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

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

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

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

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

Deferred tax is measured using the tax rate expected to apply when timing differences are reversed. Changes in deferred tax as a result of changes in tax rates are recognised in the income statement.

BALANCE SHEET

Non-current assets in generalIntangible assets and property, plant and equipment, except for goodwill and other intangible assets with indefinite useful lives, are measured at cost less accumulated straight-line am-ortisation and depreciation and impairment losses. Goodwill and intangible assets with indefinite useful lives are measured at cost less accumulated impairment losses. Amortisation, depreciation and impairment losses are recognised in the income statement.

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The basis of depreciation is calculated with due consideration to the asset’s scrap value, reduced by any impairment losses. The scrap value is determined at the date of acquisition and revalued each year. Where the scrap value exceeds the carry-ing amount, the property ceases to be depreciated.

If the amortisation or depreciation period or the scrap value is changed, the effect on amortisation or depreciation going forward is recognised as a change in accounting estimates.

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

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

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

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

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

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

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

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

Other intangible assets are measured at cost including costs which can be directly or indirectly attributed to the assets in question.

Other intangible assets include software, etc.

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

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

Depreciation of buildings is calculated on a straight-line basis over the expected useful lives of the assets, estimated to be between 25 and 33 years. Certain installations are depreciated over ten years.

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

Other operating equipment is depreciated on a straight-line basis over the estimated useful lives of the assets. The expected useful lives are as follows:

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

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

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

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

Financial assetsInvestments in associates in the consolidated financial state-ments are measured using the equity method and recognised at the proportionate share of the equity of the relevant enter-prise, made up according to the Group’s accounting policies, with the addition of values added on acquisition, including goodwill. Investments in associates are tested for impair-ment when there is an indication that the investment may be impaired. Associates with negative equity value are measured at zero value. If the Group has a legal or constructive obliga-tion to cover the associate’s negative balance, such obligation is recognised under liabilities. Receivables from associates are measured at amortised cost. Provision is made for bad debts.

CURRENT ASSETS

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

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

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

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

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

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

EQUITY

DividendDividend that has been finally adopted is recognised as a liability. Dividend expected to be paid in respect of the year is recognised as a separate line item under equity.

Hedging reserveHedging transactions that meet the criteria for hedging future cash flows and for which the hedged transaction has yet to be realised are recognised in equity under the hedging reserve.

Foreign exchange adjustments relating to hedging transac-tions used to hedge the Group’s net investments in such enti-ties are recognised in equity under the hedging reserve.

Currency translation reserveForeign exchange adjustments arising on the translation of financial statements for entities which have a functional currency other than Danish kroner and foreign exchange ad-justments relating to financial assets and liabilities represent-ing a part of the Group’s net investment in such entities are recognised in equity under the currency translation reserve.

On full or partial realisation of a net investment, foreign ex-change adjustments are recognised in the income statement.

Reserve for fair value adjustment of available-for-sale financial assetsReserve for fair value adjustment comprises accumulated changes in the fair values of available-for-sale financial assets. The reserve, which forms part of the Group’s free reserves, is dissolved and transferred to the income statement as the investment is sold or written down.

Reserve for treasury sharesReserve for treasury shares comprises the cost of the Com-pany’s holding of treasury shares. Dividends in respect of

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treasury shares are recognised directly in retained earnings under equity.

Gains and losses on the sale of treasury shares are recognised in the reserve for treasury shares.

Non-controlling interestsThe proportionate shares of the profits and equity of subsidi-aries attributable to non-controlling interests are recognised as a separate item under equity. On initial recognition, non-controlling interests are stated as described under “Busi-ness combinations” above. Put options issued as part of the consideration for business combinations are recognised as described under “Acquisition and divestment of non-control-ling interests” above.

Warrant programmeWarrants are issued at the market value on the date of grant. Payments received and made in relation to the warrant pro-gramme are recognised in equity.

LIABILITIES

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

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

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

The actuarial calculation of the pension obligation is recog-nised as a liability in the balance sheet. If a pension plan con-stitutes a net asset, the asset is only recognised to the extent

that it equals future repayments under the plan, or if it will lead to a reduction in future payments under the plan.

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

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

Interest from pension assets and liabilities is recognised under financials.

Other non-current employee benefits are similarly recognised based on an actuarial calculation. All actuarial gains and losses are recognised immediately in the income statement, how-ever. Other non-current employee obligations include jubilee bonuses and non-current severance schemes.

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

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

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

When the Group is under an obligation to dismantle an as-set or re-establish the site where the asset has been used, a provision is made corresponding to the present value of the expected future costs. The provision is determined based on current orders and estimated future costs, discounted to their present value. The discount factor used reflects the general level of interest rates. The present value of the costs is recog-nised in the cost of the item of property, plant and equipment

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in question and depreciated together with these assets. The increase of the present value over time is recognised in the income statement under financial expenses.

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

Residual lease commitments from finance leases are recog-nised at amortised cost.

Other financial liabilities are measured at amortised cost.

Deferred incomeDeferred income primarily represents subscription revenue relating to several financial periods.

Assets held for saleAssets held for sale comprise non-current assets and disposal groups held for sale. A disposal group is a group of assets to be disposed of, by sale or otherwise, together as a group in a single transaction. Liabilities regarding assets held for sale are liabilities directly associated with those assets that will be transferred in the transaction. Assets are classified as “held for sale” if their carrying amount will be recovered principally through a sale transaction within 12 months in accordance with a formal plan rather than through continuing use.

Assets or disposal groups held for sale are measured at the lower of the carrying amount at the date when the assets were classified as held for sale and fair value less costs to sell. Assets are not depreciated or amortised as from the date they are classified as “held for sale”.

Impairment losses from the initial classification of the non-current assets as held for sale as well as gains and losses from following measurement of the lowest value of the carrying amount or the fair value less costs to sell are recognised in the income statement. Gains and losses are disclosed in the notes to the financial statements.

Assets and related liabilities are recognised separately in the balance sheet, and the main items are specified in the notes to the financial statements. Comparative figures in the bal-ance sheet are not restated.

LeasingFor financial reporting purposes, lease liabilities are classified as either finance or operating lease liabilities.

Leases are classified as finance leases when substantially all risks and rewards of ownership of the leased asset are trans-ferred. Other leases are classified as operating leases.

The accounting treatment of assets held under finance leases and the related liability is described in the sections on prop-erty, plant and equipment and financial liabilities respectively.

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

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

CASH FLOW STATEMENT

The cash flow statement is presented according to the indirect method and shows the cash flow from operating activities, the cash flow from investing activities, the cash flow from financ-ing activities and cash and securities at the beginning and end of the year.

The cash flow statement includes cash flows from companies acquired as from the date of acquisition, and cash flows from companies divested until the date of divestment.

Cash flow from operating activitiesCash flows from operating activities include revenue less op-erating expenses and interest adjusted for non-cash operating items and changes in working capital.

Cash flows from operating activities are adjusted for cash flows related to special items and corporation tax.

Cash flow from investing activitiesCash flows from investing activities include cash flows from the acquisition and divestment of companies, non-control-ling interests and operations and the purchase and sale of intangible assets, property, plant and equipment and other non-current assets and the purchase and sale of securities not included in cash and cash equivalents.

Entering into a finance lease is considered a non-cash transac-tion.

Cash flows from financing activitiesCash flows from financing activities include cash flows from changes in share capital and related costs, purchases and sales

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of treasury shares, cash flows from dividends, cash flows from interest-bearing debt raised and repayment thereof.

Cash flows relating to assets held under finance leases are recognised as payment of interest and repayment of debt.

Cash and cash equivalentsCash and cash equivalents comprise cash and short-term mar-ketable securities with a term of three months or less which are subject to an insignificant risk of changes in value.

Cash flows in currencies other than the functional currency are translated at average exchange rates unless these differ materially from the exchange rate ruling at the transaction day.

SEGMENT REPORTING

The segment information has been prepared in accordance with the Group’s accounting policies and is based on the inter-nal management reporting.

Segment income, expenses and assets comprise items that can be directly attributed to individual segments and items that can be allocated to the individual segments on a reason-able basis. Unallocated items are primarily assets and income and expenses relating to the Group's administrative functions, income taxes and similar items. Non-current assets in a seg-ment comprise non-current assets used directly in the opera-tion of the segment, including intangible assets, property, plant and equipment and investments in associates. Current assets in a segment comprise current assets used directly in the operation of the segment, including inventories, trade receivables, other receivables, prepaid expenses and cash.

FINANCIAL RATIOS

For definitions of financial ratios, see page 115.

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

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

Estimates material to the financial reporting are made in the calculation of, inter alia, depreciation, amortisation and impairment losses, pensions and similar liabilities, provisions, the determination of fair values, share-based compensation as well as contingent liabilities and assets.

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

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

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

The impairment test of goodwill and the associated particu-larly sensitive factors and sensitivity analyses are described in note 15 to the consolidated financial statements.

Provisions for acquisition of non-controlling interestsIn the determination of the fair value of issued put options under which the Group assumes an obligation to buy shares in subsidiaries held by non-controlling shareholders, Man-agement makes certain estimates, including of the future financial performance of the subsidiaries, the probability that the option holders exercise their right to sell and the time of exercise. These factors are of material importance to the determination of the fair value, which is therefore subject to uncertainty.

Purchase price allocation in business combinationsIn connection with the allocation of the purchase price in busi-ness combinations, a determination is made of the fair values of the assets and liabilities acquired. As this determination is based on expected future cash flows related to the assets and liabilities acquired, the realisation of such cash flows as an-ticipated is subject to an inherent uncertainty. In accordance with IFRS 3, the allocation of the purchase price in business combinations may be adjusted for up to 12 months from the date of acquisition.

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2 Accounting estimates and judgments



Business areasFalck's reporting segments are its four independent business areas, Emergency, Assistance, Healthcare and Training, which sell various services.

EmergencyFalck is the largest international ambulance service provider in the world. Falck provides ambulance services to the people in 14 countries in Europe and North and South America in close collaboration with the authorities. Falck operates more than 1,800 ambulances with ambulance officers, treating more than two million sick or injured people every year. In addi-tion, Falck also helps handle many other pre-hospital services such as the operation of doctors' emergency cars, emergency response vehicles and emergency helicopters. Falck is also the world's largest international fire-fighting operator, with activi-ties in eight different countries. In Denmark, Falck provides fire-fighting and fire-prevention services in two-thirds of the country. In the other countries, Falck is active in industrial fire services, fire training and fire services consulting for both public and industrial customers.

AssistanceFalck's Assistance services are concentrated in four Nordic countries Denmark, Finland, Norway and Sweden. The servic-es provide the citizens with the greatest possible security and peace of mind, either by preventing accidents or by providing fast and competent assistance when accidents occur. The services are often subscription-based and especially provide help to people with their cars and homes. As an example, Falck helps members whose car has broken down or if they are involved in an accident. In most cases, Falck staff can repair the car on the spot. And Falck helps homeowners with everything from water in the basement to snow on the roof. Also, both private individuals, companies and public authori-ties can make use of Assistance services in situations involving buildings, health, travel and more.

HealthcareFalck Healthcare is Denmark's largest private provider of healthcare services. Under this business area, Falck helps create healthy people and healthy workplaces. An important part of Falck Healthcare's efforts consists of preventing illness, stress and attrition. The goal is to ensure that each individual has a better, longer and healthier worklife. This also means greater job satisfaction at the workplace, as well as lower costs related to illness, lower public-sector costs for social security, lower costs for insurance companies saving money on claims resulting from a reduction in or loss of working capacity, for example.

TrainingFalck provides rescue and safety courses and other safety services in 15 countries on five continents. This happens at 28 training centres aimed at the offshore industry and the mari-time sector, but the chemical industry, the aviation industry and the armed forces in Denmark and Sweden also make use of Falck's facilities and services. In addition, Falck has eight land-based training centres in the Netherlands. At all these centres, people are instructed in safe behaviour in order to avoid accidents in the workplace, and they are taught how to react correctly – also under extreme conditions – if accidents do occur. Falck is the world's leading provider within this area with competencies developed on the basis of more than 100 years of experience in rescue services.

The accounting policies of all business areas are identical to those described in the accounting policy note to the financial statements. The performance of the business areas is evalu-ated on the basis of operating profit before costs and amor-tisation from business combinations and exceptional items. Revenue and other transactions within and between business areas are accounted for as if they had taken place with third parties in accordance with Falck's rules on transfer pricing and internal settlement.

Note

3 Segment information



Note DKK million

3 Segment information (continued)

Elimination and non- allocated Business areas 2011 Emergency2) Assistance Healthcare Training items Total KEY RATIOS Operating margin (%) 1) 6.8 12.4 7.4 12.6 9.6

INCOME STATEMENT Revenue 6,385 2,693 1,112 1,019 (1,016) 10,193Operating profit before amortisation, depreciation, impairment and exceptional items 633 360 100 180 - 1,273Amortisation, depreciation and impairment (269) (31) (20) (62) - (382)

Operating profit before exceptional items 364 329 80 118 - 891

Analysed as follows: Operating profit before costs and amortisation from business combinations and exceptional items 435 335 82 128 - 980Amortisation of intangible assets and costs from business combinations (71) (6) (2) (10) - (89)Operating profit before exceptional items 364 329 80 118 - 891Exceptional items (154) - - - 236 82

Profit before financials 210 329 80 118 236 973 Financials, etc. (273) (273)

Profit before tax 700 700Income taxes (184) (184)

Profit for the year 516 516

BALANCE SHEET Total assets 4,929 2,696 1,109 1,750 (191) 10,293Net investments in intangible assets, property, plant and equipment 145 61 6 72 - 284

1) Operating profit before costs and amortisation from business combinations and exceptional items as a percentage of revenue.

2) The Emergency business includes operations in Venezuela, which is classified as a hyperinflationary economy. The revenue and operat-ing profit stated above therefore include an adjustment for hyperinflation of DKK 4 million and DKK 0 million respectively. The effect on profit for the year was a reduction by DKK 1 million.



Note DKK million


Elimination and non- allocated Business areas 2010 Emergency Assistance Healthcare Training items Total KEY RATIOS Operating margin (%) 1) 6.8 10.9 6.3 14.8 10.0

INCOME STATEMENT Revenue 4,834 2,470 1,196 958 (1,091) 8,367Operating profit before amortisation, depreciation, impairment and exceptional items 508 280 96 188 24 1,096Amortisation, depreciation and impairment (204) (22) (26) (55) (307)

Operating profit before exceptional items 304 258 70 133 24 789

Analysed as follows: Operating profit before costs and amortisation from business combinations and exceptional items 329 269 75 142 24 839Amortisation of intangible assets and costs from business combinations (25) (11) (5) (9) (50)Operating profit before exceptional items 304 258 70 133 24 789Exceptional items - - - - (26) (26)

Profit before financials 304 258 70 133 (2) 763

Financials, etc. (122) (122)

Profit before tax 641 641Income taxes (183) (183)

Profit for the year 458 458

BALANCE SHEET Total assets 3,875 2,572 1,071 1,750 (179) 9,089Net investments in intangible assets, property, plant and equipment 33 49 11 41 (22) 112

1) Operating profit before costs and amortisation from business combinations and exceptional items as a percentage of revenue.





Non-current Non-current assets assets excluding excluding deferred deferred Geographic breakdown Revenue tax assets Revenue tax assets Denmark 5,459 4,054 5,292 4,075Nordic region 1,705 833 1,541 773Europe 1,212 653 1,087 596North America 1,073 885 175 687South America 606 786 143 309Rest of the world 138 204 129 217

Total 10,193 7,415 8,367 6,657

The breakdown of revenue is based on customers' country of residence. No single customer accounts for 10% or more of revenue.

Breakdown of assets based on physical location.

The Nordic region comprises the following countries:Norway, Sweden and Finland.

Europe comprises the following countries:Belgium, Estonia, the Netherlands, Poland, Romania, Slovakia, Spain, United Kingdom, Turkey and Germany.

North America comprises the following country:United States

South America comprises the following countries:Brazil, Colombia, Ecuador, El Salvador, Panama, Trinidad & Tobago, Uruguay and Venezuela.

The rest of the world comprises the following countries:Azerbaijan, United Arab Emirates, India, Kazakhstan, Malaysia, Nigeria, Russia, Singapore, Thailand and Vietnam.


4 Revenue

Services 10,121 8,318Products 72 49

Total revenue 10,193 8,367

5 Other operating income

Gain on sales of assets 25 52Other operating income 23 18

Total other operating income 48 70

Other operating income relates mainly to rent from premises.




6 Fees to auditors appointed at the annual general meeting

KPMG Audit (8) (6)Other assurance engagements - -Tax advisory services (1) (2)Preparation of a potential IPO (5) (8)Other services (2) (2)

Total fees (16) (18)

7 Staff costs

Salaries and wages to employees (4,610) (3,771)Ordinary remuneration to the Executive Management Board (8) (10)Of which paid by Falck Holding A/S 4 -Remuneration to the Executive Management Board relating to preparation of a potential IPO - (7)Remuneration to the Board of Directors (3) (2)

Total (4,617) (3,790)Of which reinvoiced - 3

Total salaries and remuneration (4,617) (3,787)

Defined-contribution pension plans (271) (255)Defined-benefit pension plans - 18Other social security costs (448) (330)Other staff costs (355) (301)

Total other staff costs (1,074) (868)

Total staff costs (5,691) (4,655)

Number of full-time employees 20,115 14,352

Number of part-time employees 5,147 4,791

Number of employees (full-time equivalents) 17,143 13,727

Remuneration to the Executive Management Board does not include pension contributions

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

Warrant programme, Executive Management BoardNumber of warrants at 1 January - 4,443,120Grant of new warrants. See note 21 4,443,120 -Cancellation of warrants. See note 21 (4,443,120) -Buy back in the period. See note 21 - (4,443,120)

Number of warrants at 31 December - -

At the extraordinary general meeting held on 25 February 2011, the Board of Directors was authorised to establish a new warrant programme. At the Board meeting held on 15 March 2011, the Board of Directors adopted a resolution to establish a new warrant pro-gramme for the Executive Management Board. The new warrant programme comprises 4,443,120 warrants. Each warrant entitles the holder to subscribe for one share with a nominal value of DKK 0.50 on 30 December 2015 at a price of DKK 125 per share. The warrants issued were acquired at market value, equivalent to DKK 11 million, and there are no conditions attached to the acquisition of the war-rants. The warrants issued have been transferred to Falck Holding A/S and subsequently cancelled at an extraordinary general meeting of Falck A/S.




8 Amortisation, depreciation and impairment

Intangible assets from acquisitions (56) (27)Other intangible assets (29) (28)Buildings (33) (36)Leasehold improvements (12) (10)Fixtures and fittings, tools and equipment (245) (206)Amortisation, depreciation and impairment for the year (7)

Total amortisation, depreciation and impairment (382) (307)

9 Amortisation of intangible assets and costs from business combinations

Amortisation of intangible assets from business combinations (56) (27)Costs from business combinations (33) (23)

Total amortisation of intangible assets and costs from business combinations (89) (50)

10 Exceptional items

Gains on the sale of available-for-sale securities 242 -

Exceptional items, income 242 -

Impairment loss on available-for-sale securities (142) -Costs relating to sale of Falck A/S (18) (26)

Exceptional items, costs (160) (26)

Total exceptional items 82 (26)

11 Financial income

Foreign exchange gains 23 21Interest from cash 10 6Interest from securities held to maturity 2 1Other financial income 3 5

Total financial income 38 33

12 Financial expenses

Foreign exchange losses (17) (14)Interest to credit institutions (188) (119)Costs of debt restructuring (74) -Interest element on discounted liabilities (5) (12)Interest expenses to Group companies (1) -Other financial expenses (25) (10)

Total financial expenses (310) (155)




13 Income taxes

Current tax (214) (184)Change in deferred tax for the year 32 (1)Prior year adjustments (2) 2

Total income taxes (184) (183)Tax on other comprehensive income (1) (38)

Total tax (185) (221)

Income taxes paid during the year (150) (195)

Breakdown of tax rate: Total income taxes (184) (183)

Tax base for current tax 700 641

Effective tax rate 26.2% 28.6%

Danish tax rate 25.0% 25.0%Differences in foreign tax rates relative to Danish rate (0.4%) 0.4%Non-deductible costs/(tax-exempt income) (0.4%) 2.8%Current year's non-capitalised tax losses 0.6% 0.3%Utilisation of non-capitalised tax losses (0.1%) (0.4%)Other adjustments including adjustments relating to prior years 1.5% 0.5%


Tax on other comprehensive income Tax on foreign exchange differences 6 (33)Tax on actuarial adjustments relating to pension obligations 1 (1)Tax on value adjustments relating to currency hedging instruments (11) (3)Tax on value adjustments of interest hedging instruments 3 (1)

Total tax on other comprehensive income (1) (38)

14 Earnings per share

Profit for the year 516 458Profit attributable to non-controlling interests 16 14

Profit attributable to the Falck Group 500 444

Average number of shares 92,786,800 92,786,800Average number of treasury shares 51,559 268,079

Average number of outstanding shares 92,735,241 92,518,721Average dilutive effect of outstanding warrants 2,284,057 3,553,820

Diluted average number of outstanding shares 95,019,298 96,072,541

Earnings per share (EPS) of DKK 0.50 5.4 4.8

Diluted earnings per share (DEPS) of DKK 0.50 5.3 4.6



Note DKK million

15 Intangible assets

Intangible assets Other from intangible 2011 Goodwill acquisitions assets Total Cost at 1 January 2011 4,711 336 170 5,217Foreign exchange differences 61 15 - 76Additions on acquisitions 746 166 9 921Transfer to assets held for sale (82) (16) - (98)Additions - - 42 42Revaluation of put options and earn-outs (56) - - (56)Disposals and reclassification - - (6) (6)Adjustments to prior-year acquisitions (78) (36) - (114)

Cost at 31 December 2011 5,302 465 215 5,982

Amortisation and impairment at 1 January 2011 - (75) (73) (148)Foreign exchange differences - (2) - (2)Transfer to assets held for sale 82 16 - 98Disposals and reclassification - - 9 9Amortisation - (56) (29) (85)Impairment (82) (3) - (85)

Amortisation and impairment at 31 December 2011 - (120) (93) (213)

Carrying amount at 31 December 2011 5,302 345 122 5,769

Intangible assets Other from intangible 2010 Goodwill acquisitions assets Total Cost at 1 January 2010 4,075 127 169 4,371Foreign exchange differences 91 12 3 106Additions on acquisitions 575 197 1 773Additions - - 27 27Revaluation of put options and earn-outs (30) - - (30)Disposals and reclassification - - (30) (30)

Cost at 31 December 2010 4,711 336 170 5,217

Amortisation and impairment at 1 January 2010 - (46) (75) (121)Foreign exchange differences - (2) (2) (4)Disposals and reclassification - - 32 32Amortisation - (27) (28) (55)

Amortisation and impairment at 31 December 2010 - (75) (73) (148)

Carrying amount at 31 December 2010 4,711 261 97 5,069

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

Other intangible assets are primarily related to software.

Except for goodwill, all intangible assets are deemed to have a limited economic life.



Note DKK million

15 Intangible assets (continued)

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

2011 2010

Goodwill is related to the following business areas: Emergency 1,537 956Assistance 1,964 1,948Healthcare 811 761Training 990 1,046

Total goodwill 5,302 4,711

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

The future net cash flows are based on the consolidated budget for 2012 and the Group’s strategic plan for the period until 2015. Moreo-ver, growth during the terminal period has been estimated at 2-3% (2010: 3.0%). The key parameters for the impairment test are performance in terms of revenue and the EBITA margin. As capital tied up in net operat-ing assets is generally low in the Group, this parameter does not have any material impact on the impairment test.

The Emergency activities primarily consist of ambulance services, including transportation of patients, and of fire fighting for public- and private-sector customers, and they do not fluctuate materially from year to year. Emergency also includes training and consulting activi-ties for private-sector companies in several countries. The discount rate for Emergency has been set at 8% (2010: 8%).

The Assistance activities primarily consist of subscriptions and are therefore stable from year to year. The discount rate has been set at 8% (2010: 8%).

The Healthcare activities primarily consist of subscriptions and longer term contracts and are therefore stable from year to year. The discount rate has been set at 8% (2010: 8%). Substantial growth is expected in the Healthcare business in the years ahead.

Healthcare also includes staffing business which mainly consists of payments on a case-by-case basis. The discount rate has therefore been set at 9% (2010: 9%).

Training activities primarily consist of rescue and safety courses and other safety services and is to a certain extent affected by the activ-ity level in the oil industry. The discount rate has therefore been set at 9% (2010: 9%). The main assumptions in the strategic plan until 2015 are the expected organic growth and that off-shore exploration activities will pick up pace.

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



Note DKK million

16 Propertry, plant and equipment

Fixtures, Leasehold fittings, Land and improve- tools and 2011 buildings ments equipment Total Cost at 1 January 2011 858 91 1,174 2,123Foreign exchange differences (4) (15) (19)Additions on acquisitions 1 5 107 113Transfer to assets held for sale - - (45) (45)Additions 45 13 263 321Disposals and reclassification 2 (7) (253) (258)

Cost at 31 December 2011 902 102 1,231 2,235

Depreciation and impairment at 1 January 2011 (146) (34) (379) (559)Foreign exchange differences (1) 1 5 5Transfer to assets held for sale - - 45 45Disposals and reclassification - 1 217 218Depreciation (33) (12) (245) (290)Impairment - - (29) (29)

Depreciation and impairment at 31 December 2011 (180) (44) (386) (610)

Carrying amount at 31 December 2011 722 58 845 1,625

of which assets under construction 16 - 26 42of which assets held under finance leases 18 - 12 30

Fixtures, Leasehold fittings, Land and improve- tools and 2010 buildings ments equipment Total Cost at 1 January 2010 844 82 1,100 2,026Foreign exchange differences 16 4 41 61Additions on acquisitions - 2 63 65Additions 152 7 215 374Disposals and reclassification (154) (4) (245) (403)

Cost at 31 December 2010 858 91 1,174 2,123

Depreciation and impairment at 1 January 2010 (118) (26) (288) (432)Foreign exchange differences (4) (1) (30) (35)Disposals and reclassification 12 3 145 160Depreciation (36) (10) (206) (252)

Depreciation and impairment at 31 December 2010 (146) (34) (379) (559)

Carrying amount at 31 December 2010 712 57 795 1,564

of which assets under construction 14 - 18 32of which assets held under finance leases 12 - 12 24




17 Investments in associates

Cost at 1 January 22 2Additions on acquisitions - 20Adjustments to prior-year acquisitions (8) -

Cost at 31 December 14 22

Share of valuation adjustments at 1 January (4) (5)Share of profit after tax (1) -Disposals and reclassifications - 1

Impairment and share of valuation adjustments at 31 December (5) (4)

Carrying amount before offset in receivables at 31 December 9 18Companies with negative carrying amount offset in receivables 6 5

Carrying amount at 31 December 15 23

See "Legal entities" for a list of companies.

Summary financial information about associates (100%):Revenue 46 19Profit for the year 1 3Total assets 320 283Total liabilities 320 275

18 Inventories

Goods for resale 60 60

Total inventories 60 60

Value of inventories recognised at net realisable value - -Write-downs during the year 1 3Reversal of write-downs during the year - -

19 Trade receivables

Total trade receivables 1,173 1,088

Write-downs at 1 January 29 27Write-downs during the year 127 27Realised write-downs during the year (3) (25)

Write-downs at 31 December 153 29

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

However write-downs of receivables increased in 2011 as a result of the acquisitions of Care Ambulance and Lifestar Response, as ambu-lance companies in the United States collect payment directly from the patient if the patient does not have health insurance or is covered by a public insurance scheme. This may be difficult, especially in the event of emergency responses.

Write-downs are generally recognised in other external costs. However, write-downs of receivables from private customers in the United States are recognised in revenue when it is assumed in advance that they cannot be collected.

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




19 Trade receivables (continued)

Breakdown by maturity: Not due 692 703Due within - 1 to 30 days 279 167Due within - 31 to 90 days 156 97Due within - more than 90 days 199 150

1,326 1,117

Provision for bad debts (153) (29)

Total trade receivables 1,173 1,088

Fair value of trade receivables 1,173 1,088

20 Cash and securities

Cash 885 439Securities 172 372

Total cash and securities 1,057 811

Breakdown of cash and securities: Cash 885 439Securities with maturities of less than 3 months 77 -

Cash and securities as per cash flow statement 962 439 Securities subject to regulations on solvency requirements 95 66Available-for-sale securities - 306

Total cash and securities 1,057 811

DKK 95 million (2010: DKK 66 million) of the Group’s cash and securities is held in a Swedish subsidiary which is subject to Swedish insur-ance regulations and which is therefore subject to solvency requirements.

21 Equity, treasury shares and dividends

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

The Group monitors and manages its capital structure in order to ensure that it can meet its financial obligations. No changes have been made to the Group's management of capital as compared with 2010.

A capital increase of DKK 1 million was made in 2009. There have been no other changes to the share capital during the past five years.

The share capital is divided into 92,786,800 shares (2010: 92,786,800 shares) with a nominal value of DKK 0.50 each. The shares are fully paid up and are not divided into classes.

Number of shares Nominal value (DKK thousand) % of share capital Treasury shares 2011 2010 2011 2010 2011 2010 Treasury shares at 1 January - 258,219 - 129 - 0.29Additions 76,191 95,238 38 48 0.08 0.10Disposals - (353,457) - (177) - (0.39)

Treasury shares at 31 December 76,191 - 38 - 0 -

All treasury shares are owned by Falck Danmark A/S and have been bought back from former employees.The purchase price of treasury shares acquired during the financial year was DKK 6 million (2010: DKK 6 million).The sales price of treasury shares sold during the financial year was DKK 0 million (2010: DKK 30 million).




21 Equity, treasury shares and dividends (continued)

WarrantsAt an extraordinary general meeting held on 25 February 2011, the Board of Directors was authorised to establish a new warrant programme. At a meeting of the Board of Directors held on 15 March 2011, the Board passed a resolution to establish a new warrant programme for the Executive Management Board. The new warrant programme comprises 4,443,120 warrants. Each warrant entitles the holder to subscribe for one share with a nominal value of DKK 0.50 at DKK 125 per share on 30 December 2015. The warrants issued were acquired at market price, equivalent to DKK 11 million, and no conditions were attached to the acquisition.

The warrant programme was transferred to Falck Holding A/S in connection with the acquisi-tion of Falck A/S by Falck Holding A/S, and was subsequently cancelled at an extraordinary general meeting of Falck A/S.

Warrant programme Number of warrants at 1 January 4,443,120 -Buy back of own warrants - 4,443,120Cancellation of own warrants (4,443,120) -Grant of new warrants 4,443,120 -Cancellation of new warrants (4,443,120) -

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

DividendA dividend of DKK 0 million is proposed (2010: DKK 0 million).

22 Pension obligations

The Group contributes to pension plans which cover employees in various companies of the Group. The pension plans are typically defined-contribution plans. The Group has defined benefit-plans in Norway and the Netherlands.

The Group has a defined-benefit plan in Sweden which is partially covered by an external pension company. It is not possible for the pension company to make an actuarial calculation of the pension obligation. As a result, the plan is accounted for as a defined-contribution plan.

The defined-benefit plans result in unfunded pension obligations which are not insured in an independent insurance company. The consolidated balance sheet includes unfunded pension obligations based on actuarial calculations. Changes in actuarial gains and losses are recognised fully in equity.

2011 2010

DEFINED-BENEFIT PLANSCosts in current financial year - 2One-off effects of transition to defined-contribution plan - (20)Interest expenses related to pension obligations 1 1Expected return on plan assets (1) (1)

Recognised pension cost - (18)

Breakdown of provision for the Group's obligations:Present value of pension obligations 30 24Fair value of plan assets (28) (26)

Total pension provisions 2 (2)

Recognised in the balance sheet as follows: Pension assets - 2Provision for pensions (2) -

Total (2) 2

The pension assets are included in other receivables.




22 Pension obligations (continued)

Breakdown of movements in present value of pension provisions:Pension provisions at 1 January 24 75Foreign exchange differences 2 4Cost in respect of current financial year - 2Changes in actuarial estimates 4 (37)One-off effects of transition to defined-contribution plan - (20)Calculated interest 1 1Paid out during the period (1) (1)

Pension provisions at 31 December 30 24

Expected contributions for next year - -

Movements in fair value of plan assets Plan assets at 1 January 26 56Foreign exchange differences 1 3Expected return on plan assets 1 1Employer's contributions to plan during the period - 2Changes in actuarial estimates 1 (35)Paid out during the period (1) (1)

Total plan assets at 31 December 28 26

Actual return on plan assets (1) (1)Total actuarial gains recognised in the statement of comprehensive income 3 2Total accumulated actuarial gains recognised in the statement of comprehensive income (7) (7)

Breakdown of plan assets: Shares 2 4Bonds 21 16Property etc. 4 4Other 1 2

Total plan assets 28 26

The defined-contribution plans are paid and recognised as incurred, and the Group has no obligations to the employees thereafter.

The calculation of the obligation is based on the following assumptions:

Norway Salary increases 3.8% 4.0%Expected return on plan assets 4.8% 5.0%Discount rate 3.3% 3.6% Netherlands Salary increases 3.8% 3.8%Expected return on plan assets 5.5% 5.5%Discount rate 5.5% 5.5% The return on plan assets has been set on the basis of market expectations of the rate of return.



Note DKK million

22 Pension obligations (continued)

Breakdown of the Group's pension obligations for the current and the preceding four years:

2011 2010 2009 2008 2007

Actuarial pension obligations (30) (24) (75) (72) (70)Plan assets 28 26 56 49 53

(Under funding)/over funding (2) 2 (19) (23) (17)

Experience-based change to obligations 5 (1) (9) (2) (5)Experience-based change to plan assets (1) 0 (3) (3) 0

23 Other employee obligations

2011 2010

Employee obligations at 1 January 32 36Adjustment in respect of current financial year 1 1Paid out during the period (4) (5)

Employee obligations at 31 December 29 32

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

24 Deferred tax

Deferred tax provisions at 1 January 205 93Foreign exchange differences - (1)Additions on acquisitions 18 73Change in deferred tax for the year (32) 39Change in deferred tax for prior years 15 1

Deferred tax provisions at 31 December 206 205

Deferred tax assets (78) (75)Deferred tax provision 284 280


Breakdown of deferred tax:Intangible assets 115 115Property, plant and equipment 92 111Current assets 6 13Non-current debt and provisions (14) (17)Current debt 31 12Tax losses carried forward (37) (36)Foreign exchange differences recognised in equity 13 7


Tax losses carried forward and not included in deferred tax assets amount to DKK 33 million (2010: DKK 35 million).

Deferred tax assets are recognised on the basis of expected future earnings.

The Group does not have a material liability for withholding taxes in connection with potential dividend payments from subsidiaries.




25 Provisions for acquisitions of operations and non-controlling interests

Provisions for acquisitions of non-controlling interests 516 311Outstanding consideration and earn-outs 39 146

Provisions at 31 December 555 457

Non-current provisions: Provisions for acquisitions of non-controlling interests 493 311Outstanding consideration and earn-outs 19 77

Total 512 388

Current provisions: Provisions for acquisitions of non-controlling interests 23 -Outstanding consideration and earn-outs 20 69

Total 43 69

Total provisions 555 457

Provisions for acquisitions of non-controlling interests

Provisions at 1 January 311 227Foreign exchange differences 24 28Additions on acquisitions 258 103Additions on divestments of non-controlling interests 1 41Reclassification to provisions relating to assets held for sale (17) -Disposals on acquisitions of non-controlling interests (2) (49)Interest element on discounted liabilities 5 12Dividends paid (3) (16)Adjustment relating to prior-year acquisitions (47) Revaluation recognised in goodwill (58) (30)Revaluation and interests recognised in equity 44 (5)

Provisions for acquisitions of non-controlling interests at 31 December 516 311

Classification of provisions for acquisitions of non-controlling interests by expected maturity:Within 1 year 23 -Between 1 and 3 years 374 156More than 5 years 119 155

Provisions for acquisitions of non-controlling interests at 31 December 516 311

Outstanding consideration and earn-outs Provisions at 1 January 146 59Adjustment relating to prior-year acquisitions (40) -Additions on acquisitions 19 134Reclassification to provisions relating to assets held for sale (35) -Payments during the year (51) (47)

Outstanding consideration and earn-outs at 31 December 39 146

Classification of outstanding consideration and earn-outs by expected maturity:Within 1 year 20 69Between 1 and 5 years 19 77More than 5 years - -

Outstanding consideration and earn-outs at 31 December 39 146



Note DKK million

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

In connection with Falck assuming an obligation to acquire non-controlling interests, a concurrent right was obtained for Falck to acquire the same non-controlling interests in an agreed period.

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

2011 2010

26 Other provisions

Provisions at 1 January 54 13Additions on acquisitions 15 43Provisions used during the year (22) (2)Reversed provisions (1) -Reversed provisions relating to assets held for sale (23) -

Other provisions at 31 December 23 54

Classification of provisions by expected maturity: Within 1 year 12 20Between 1 and 5 years 3 25More than 5 years 8 9

Other provisions at 31 December 23 54

Other provisions concern pending litigation, an unprofitable lease contract for premises and the Group's obligation to clean up and demolish facilities on leased land.

27 Credit institutions

Non-current liabilities: Assets held under finance leases 48 13Long-term loans 4,185 3,146

Total 4,233 3,159

Current liabilities: Assets held under finance leases 23 5Short-term loans 60 596

Total 83 601

Total credit institutions 4,316 3,760

Of total long-term loans, mortgage loans represent DKK 377 million (2010: DKK 385 million)

Breakdown by maturity: Due within 1 year 83 601Due between 1 and 5 years 1,480 2,769Due after 5 years 2,753 390

Total 4,316 3,760




27 Credit institutions (continued)

Breakdown by currency: DKK 2,161 2,554EUR 1,492 886NOK 19 6USD 604 283SEK 10 18BRL 2 13Other 28 -

Total 4,316 3,760

Interest reset periods: Within 3 months 3,939 3,375After 12 months 377 385

Total 4,316 3,760

The statements set out above do not include liabilities relating to interest for subsequent financial periods. See note 35 for a description of the Group's risks and cash resources.

The effective interest rate has been determined at 4.3% (2010: 3.4%).

For debt with an interest reset period within 3 months, regular assessments are made of how long the interest period should be. As at the balance sheet date, the interest rate in DKK was fixed for one month and averaged approximately 3.4% (2010: 1.8%).

As at the balance sheet date, the interest rate in EUR was fixed for one month and averaged approximately 3.5% (2010: 1.0%) during the financial year. As at the balance sheet date, the interest rate in USD was fixed for one month and averaged approximately 2.6% (2010: 0.7%) during the financial year.

For debt with an interest reset period beyond 12 months (in DKK) the effective interest rate is currently approximately 4.5% (2010: 4.5%).

The market value of debt with an interest reset period within 3 months is approximately DKK 3,941 million (2010: DKK 3,378 million), and the market value of debt with an interest reset period beyond 12 months is approximately DKK 415 million (2010: DKK 411 million).

DKK 38 million (2010: DKK 26 million) of capitalised loan costs has been deducted from the carrying amount of debt.

The Group is funded by a general syndicated loan with loan terms requiring that certain financial performance indicators are met. All loan terms were met in 2011.

Assets held under finance leasesAssets held under finance leases comprise leased vehicles and buildings. The lease contracts do not include any contingent lease payments.

Breakdown of liabilities concerning assets held under finance leases:

Present value Minimum of lease lease 2011 payments Interest payments

Due within 1 year 23 3 26Due between 1 and 5 years 38 2 40Due after 5 years 9 - 9

Total as at 31 December 2011 70 5 75

Present value Minimum of lease lease 2010 payments Interest payments

Due within 1 year 5 1 6Due between 1 and 5 years 10 1 11Due after 5 years 3 - 3

Total as at 31 December 2010 18 2 20




28 Other payables

Holiday pay, wages, etc. 609 552Employee income taxes, etc. 80 62VAT 118 77Accrued interest 1 1Other 65 111

Total other payables 873 803

29 Deferred income

Subscription commitments 1,036 1,013Other deferred income 295 281

Total deferred income 1,331 1,294

30 Net financials

Financial income and expenses (272) (122)Of which unrealised gains and losses (3) (7)Interest element, discounted liabilities 5 12Change in amortised borrowing costs (10) (24)Repayment of interest rate swaps offset against loan proceeds 51 -Change in interest payable (1) (2)

Total net financials (230) (143)

31 Investments in subsidiaries, non-controlling interests and operations

Lifestar EMI Other 2011 2010

Assets Intangible assets (3) (6) - (9) (1)Property, plant and equipment (63) (28) (22) (113) (65)Cash and cash equivalents (4) (236) (17) (257) (96)Other current assets (100) (58) (25) (183) (256)Equity and liabilities Interest-bearing debt 70 134 9 213 43Current debt, provisions, etc. 60 120 24 204 216Non-controlling interests - - 4 4 2

Net assets acquired (40) (74) (27) (141) (157)Goodwill (111) (514) (121) (746) (575)Intangible assets (82) (54) (30) (166) (197)Deferred tax on intangible assets 31 18 7 56 71Value in excess of/below fair value relating to acquisitions of non-controlling interests - - - - 5Provisions for acquisitions of non-controlling interests, used during the year - - 2 2 (49)Provisions for acquisitions of non-controlling interests, addition during the year 16 243 - 259 103

Purchase price (186) (381) (169) (736) (799)Adjustment for cash and cash equivalents acquired 4 236 16 256 96Outstanding consideration - 13 6 19 43Effect of hedging the consideration denominated in foreign currency (12) - - (12) 31Consideration relating to prior-year acquisitions - - (50) (50) (19)

Cash consideration for acquisitions of Group companies (194) (132) (197) (523) (648)

Costs from business combinations, expensed 33 23



Note DKK million

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

Other than customer contracts and customer relations with a value of DKK 166 million (2010: DKK 197 million), no assets or liabilities have been identified which were not recognised in the companies acquired on the date of acquisition.

Business combinations can be adjusted up to 12 months after the acquisition.Adjustment of goodwill and other intangible assets acquired in 2011 relating to business combinations closed in 2010 amounted to DKK 97 million (2010: DKK 6 million)

Acquired assets include receivables from sales at a fair value of DKK 125 million. The contractual gross receivable is DKK 172 million, of which DKK 47 million was deemed to be unrecoverable as of the date of takeover.

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

Percentage Considera- of voting Main Month of Purchase tion rights Acquisitions 2011 activity Country acquisition price paid in acquired Lifestar Response Emergency USA Jan. 186 Cash 100%Starowka Healthcare Poland Mar. 27 Cash 75%Grupo EMI Emergency South America Mar. 381 Cash 63%HealthCare Danmark Healthcare Denmark May 27 Cash 100%Servicio Emergencias Regional (SER) Emergency Colombia Aug. 65 Cash 100%Others 50 Cash

Total acquisitions 2011 736

Profit of acquired companies after date of acquisition 30Full-year revenue including acquisitions 10,376Full-year profit including acquisitions 522

Lifestar Response is a US-based ambulance company which mainly provides non-emergency transport in a number of states on the US East Coast. The acquisition of Lifestar Response gives Falck a further presence in the United States, where Lifestar Response is one of the largest providers in the region. It is expected that the US market has substantial growth potential based on the demographic changes in the country. Part of the purchase price has been allocated to existing customer contracts and the rest to goodwill, which represents the expected value of the future growth potential and expected synergies.

Starowka operates four medical clinics in the Warsaw area in Poland. The clinics provide both public and private healthcare services. The acquisition of Starowka represents a geographic expansion of the business area in Poland. The purchase price has primarily been allo-cated to goodwill, which represents the value of the expected future growth potential and expected synergies.

Grupo EMI is a group of South American ambulance and medical service companies headquartered in Colombia. EMI offers a range of rescue services and products in six countries in the region and operates more than 250 ambulances and an extensive network of family doctors and clinics. Falck intends to use EMI's strong presence in the region as a platform for future expansion on the South American continent. Part of the purchase price has been allocated to the customer portfolio and goodwill in the form of the company's expected growth and expansion in the region.

HealthCare Danmark is a private provider of healthcare solutions that manages healthcare schemes for employees in public-sector and private-sector companies. Employees are treated and receive advice by interdisciplinary teams of physiotherapists, nurses, ergothera-pists, massage therapists and zone therapists. The acquisition of HealthCare Danmark strengthens Falck's healthcare business, which can now, to an even greater extent, develop and roll out private healthcare services with a focus on prevention. The purchase price has been allocated to the existing customer portfolio and goodwill in the form of expected growth and operating and business synergies.

Servicio Emergencias Regional (SER) is a Colombian-based ambulance company which provides subscription-based services with an owned fleet of ambulances and other vehicles in three major cities in Colombia and also has a network of doctors. The acquisition of SER strengthens the presence in Colombia and, together with the acquisition of EMI earlier in the year, it enables Falck to provide the best possible emergency assistance and doctor's assistance to people in that part of the country. Part of the purchase price has been allocated to the customer portfolio and the rest to goodwill in the form of the company's expected growth and synergies.



Note DKK million

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

Percentage Considera- of voting Main Month of Purchase tion rights Acquisitions 2010 activity Country acquisition price paid in acquired Resource Protection International Ltd. Emergency UK Mar. 78 Cash 100%S Reg AB Assistance Nordic region Sep. 181 Cash 100%Toesa Service S.A. Emergency Brazil Oct. 170 Cash 60%Care Ambulance Service, Inc. Emergency USA Dec. 322 Cash 100%Falck AVD B.V. Emergency Netherlands Apr. 20 Cash 20%Other acquisitions 28 Cash


Profit of acquired companies after date of acquisition 11Full-year revenue including acquisitions 8,966Full-year profit including acquisitions 510

Percentage Considera- of voting Main Month of Purchase tion rights Acquisitions 2012 activity Country acquisition price paid in acquired VL Emergency Spain Mar. 108 Cash 75%


Falck acquired 75% of the shares of VL in February 2012VL Transport Sanitari and Grup VL Serveis Sanitaris (VL) are Spanish ambulance companies which operate 70 ambulances for emergency as well as non-emergency transportation of patients in Catalonia, Spain. Falck intends to use the acquisition of VL as a platform for fur-ther expansion in the field of ambulance services on the Spanish market.

It has not yet been possible to complete the purchase price allocation due to the date of acquisition.

2011 2010

32 Dividends paid to non-controlling interests

Dividend to non-controlling interests recognised in equity (16) (13)Dividend to non-controlling interests recognised in provisions for acquisitions of non-controlling interests (3) (16)

Total dividends paid to non-controlling interests (19) (29)

33 Other movements relating to shareholders

Acquisition of treasury shares (6) (6)Disposal of treasury shares - 30Issuance of warrants 11 -Buy back of warrants - (307)

Total other movements relating to shareholders 5 (283)




34 Contingent liabilities, contractual obligations and collateral security

Contingent liabilities

Total guarantee commitments 9 11

The Falck Group is a party to certain litigation and claims. Management believes that rulings in this respect will not have a material impact on the Group’s financial position.

Falck A/S is jointly and severally liable for the Group’s overall VAT liability together with other jointly registered Danish enterprises.

The Group has issued performance bonds to a certain extent in connection with a number of contracts, including performance bonds for a total of DKK 249 million (2010: DKK 249 million) provided in connection with ambulance contracts in Denmark.

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

In connection with the divestment of companies and operations, usual representations and warranties are made. There are currently no outstanding claims which are not sufficiently recognised in the balance sheet.

Contractual obligationsMinimum lease payments for operating lease commitments:Due within 1 year 291 262Due between 1 and 5 years 693 674Due after 5 years 872 799

Operating lease commitments at 31 December 1,856 1,735

Net present value of lease commitments 1,486 1,444

The present value has been calculated on the basis of current market interest rates in the individual countries.

Lease payments recognised in the income statement 348 275

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

None of the leases include material contingent lease payments, whereas Falck has a right of first refusal to buy a number of buildings at a preset value. At the end of the year, Falck had notified the owner that it wanted to exercise such a right of first refusal in 2012. The value of the acqui-sition of the property is DKK 68 million.

Collateral security The shares in the subsidiary Falck Danmark A/S have been provided as collateral for debt in Falck A/S.

Carrying amount of the Group's properties that have been mortgaged in security of loans 507 512Carrying amount of the Group's operating equipment that has been provided as collateral for loans. 11 19Bearer mortgages issued and used as collateral for credits 380 385Unused bearer mortgages 15 15

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



Note DKK million

35 Financial instruments

Financial risks As a consequence of its operations, investments and financing, the Group is exposed to a number of financial risks, including market risk (foreign exchange and interest rate risk), credit risk and liquidity risk.

Group policy is not to actively speculate in financial risks. Accordingly, the Group’s financial management exclusively involves the man-agement and mitigation of financial risks that arise as a direct consequence of the Group’s operations, investments and financing.

The Group's risk exposure is subject to continuous changes as a result of inflation risk in emerging markets, foreign exchange risk and interest rate risk. The Group monitors these risks in an ongoing process and hedges them, if necessary. The Group's risk exposure and risk management is adapted to the expanded activities in North America and the new activities in South America. Falck's presence in the US ambulance market has increased the Group's credit risk. See description below. Other than as described above, there are no material changes in the Group's risk management as compared to 2010.

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

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

53% of the Group’s revenue and earnings is denominated in Danish kroner (DKK) (2010: 63%). Other currencies that account for more than 5% of revenue or earnings are United States dollars (USD), Norwegian kroner (NOK), euros (EUR) and Swedish kroner (SEK).

The income statement is affected to a minor extent by changes in exchange rates, as the profit of foreign subsidiaries is translated into Danish kroner using average exchange rates.

2011

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

EUR/DKK 1% 15 15USD/DKK 10% - 52BRL/DKK 10% - -PLN/DKK 10% - 10NOK/DKK 5% - 15GBP/DKK 5% - 8SEK/DKK 5% - 14

2010

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

EUR/DKK 1% 9 9USD/DKK 10% - -BRL/DKK 10% - 6PLN/DKK 10% - 6NOK/DKK 5% - 3GBP/DKK 5% - 4SEK/DKK 5% - 14

Assumptions regarding sensitivity information:The sensitivities related to financial instruments have been determined on the basis of the financial instruments recognised at 31 December. The sensitivities stated have been determined on the basis of an assumption that sales, price level and interest rate level are unchanged. The foreign exchange risk stated above thus does not take into account the translation risk on the translation into DKK of the profit and equity of foreign subsidiaries.



Note DKK million

35 Financial instruments (continued)

Interest rate risk The Group’s interest rate risk is mainly affected by the Group’s overall financing. Based on the current market situation, the Group's Executive Management Board and the Board of Directors have decided to swap 77% of the overall financing to a fixed three-year rate of interest via interest rate swaps. The rest of the overall financing is based on short-term interest rates. The interest rate exposure is hedged by interest rate swaps during the hedging period to the effect that interest rates on part of the debt that is denominated in DKK cannot exceed 1.40%, for debt denominated in EUR, interest rates cannot exceed 1.17%, and for debt denominated in USD, interest rates cannot exceed 0.55%. The remaining part of the syndicated financing is to be based on short-term interest rates. The Group is therefore sensitive to fluctuations in market interest rates, and a fluctuation by 1% would change the Group’s interest expense by DKK 11 million (2010: DKK 13 million) as a large part of the interest rate risk is hedged by interest rate swaps. Without these hedges, a fluctuation by 1% would change the Group's interest expense by DKK 40 million (2010: DKK 34 million).

The Group monitors developments in market interest rates closely so that it can react if the market situation changes.

Assumptions regarding sensitivity information: The sensitivity stated has been determined based on the recognised financial assets and liabilities as at 31 December 2011. No adjust-ment has been made for servicing and raising of debt or the like in 2011. Furthermore, it is assumed that all hedges of floating-rate loans are effective.

Credit risk The Group’s credit risk primarily concerns primary financial assets. Credit risk related to financial assets equals the values recognised in the balance sheet.

The Group is not exposed to significant risks concerning individual customers or business partners. When entering into significant contracts, the Group makes a credit assessment of the customer in order to reduce the potential credit risk. The Group’s credit exposure to large customers is generally considered low as the Group’s large customers are mainly public authorities. However, write-downs of receivables increased in 2011 as a result of the acquisitions of Care Ambulance and Lifestar Response, as ambulance companies in the United States collect payment directly from the patient if the patient does not have health insurance or is covered by a public insurance scheme. This may be difficult, especially in the event of emergency responses.

Subscription sales to private and corporate customers are not deemed to involve material risks to the Group as the amounts are small for the individual subscriptions, and general as well as individual provisions are made for anticipated bad debts.

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

See note 27 for a breakdown of maturities of liabilities to credit institutions. In addition to its recognised liabilities, the Group also has the option to draw on short-term credits.

The Group continuously monitors its free cash flow in order to assess its liquidity risks.

At year-end 2011, the Group’s unused credit and other facilities were in the region of DKK 960 million (2010: DKK 720 million).

With the addition of available cash and cash equivalents of DKK 962 million (2010: DKK 745 million), total cash resources were in the region of DKK 1,922 million (2010: DKK 1,465 million).

Certain of the Group’s loans are subject to certain loan covenants, and the Group continuously monitors whether the covenants are observed.

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



Note DKK million


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

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

Due Due Due Contrac- within between between Due tual Total one 1 and 3 3 and 5 after 5 cash carrying Market Contractual cash flows including interest 2011 year years years years flows amount value

Financial assets: Trade receivables 1,173 - - - 1,173 1,173 1,173Receivables from associates 55 - - - 55 55 55Other receivables 210 - - - 210 210 210Cash and cash equivalents 885 - - - 885 885 885

Loans and receivables 2,323 - - - 2,323 2,323 2,323

Securities 172 - - - 172 172 172

Available-for-sale financial assets 172 - - - 172 172 172

Total financial assets 2,495 - - - 2,495 2,495 2,495

Financial liabilities: Credit institutions 331 910 1,067 2,975 5,283 4,316 4,356Provisions for acquisitions of operations and non-controlling interests 43 65 575 190 873 555 555Trade payables 607 - - - 607 607 607Payables to Group companies 9 - - - 9 9 9Other payables 855 - - - 855 855 855

Financial liabilities measured at amortised cost 1,845 975 1,642 3,165 7,627 6,342 6,348

Derivative financial instruments to hedge future cash flows - 21 - - 21 21 21Derivative financial instruments to hedge net investments in foreign enterprises 18 - - - 18 18 18

Financial liabilities used as hedging instruments 18 21 - - 39 39 39

Total financial liabilities 1,863 996 1,642 3,165 7,666 6,381 6,387



Note DKK million


Due Due Due Contrac- within between between Due tual Total one 1 and 3 3 and 5 after 5 cash carrying Market Contractual cash flows including interest 2010 year years years years flows amount value

Financial assets: Trade receivables 1,088 - - - 1,088 1,088 1,088Receivables from associates 21 - - - 21 21 21Other receivables 246 - - - 246 246 246Cash and cash equivalents 439 - - - 439 439 439

Loans and receivables 1,794 - - - 1,794 1,794 1,794

Securities 372 - - - 372 372 372

Available-for-sale financial assets 372 - - - 372 372 372

Derivative financial instruments to hedge net investments in foreign enterprises 5 - - - 5 5 5

Financial assets used as hedging instruments 5 - - - 5 5 5

Total financial assets 2,171 - - - 2,171 2,171 2,171

Financial liabilities: Credit institutions 687 2,895 35 488 4,105 3,760 3,789Provisions for acquisitions of operations and non-controlling interests 71 90 171 191 523 457 457Trade payables 581 - - - 581 581 581Other payables 733 - - - 733 733 733

Financial liabilities measured at amortised cost 2,072 2,985 206 679 5,942 5,531 5,560

Derivative financial instruments to hedge future cash flows 32 25 - - 57 64 64Derivative financial instruments to hedge net investments in foreign enterprises 6 - - - 6 6 6


Total financial liabilities 2,110 3,010 206 679 6,005 5,601 5,630



Note DKK million


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

The fair value of the effective part of the outstanding foreign exchange contracts as at 31 December used as hedging instruments and qualifying for hedge accounting in respect of future transactions has been recognised directly in equity until the hedged transactions are recognised in the income statement.

2011 2010

Contract Market Contract Market Foreign currency sold/(bought) on forward contracts: value value value value

BRL (expires in 2011) - - (63) 3NOK (expires in 2012) 311 (3) 69 (2)GBP (expires in 2012) 161 (5) 76 2PLN (expires in 2012) 99 (1) 62 -SEK (expires in 2012) 288 (9) 289 (4)USD (expires in 2011) - - (239) -

Total 859 (18) 194 (1)

Of which recognised in income statement - -

For future recognition (18) (1)

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

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

2011 2010

Contract Market Contract Market Interest rate collar/interest rate swap: value value value value DKK collar (floor 3.25% / cap 5.5%) repaid in 2011 - - 855 (30)EUR collar (floor 3.25% / cap 5.5%) repaid in 2011 - - 855 (34)DKK interest rate swap (fixed rate1.4%) expires in 2014 1,000 (18) - -USD interest rate swap (fixed rate 0.553%) expires in 2014 431 - - -EUR interest rate swap (fixed rate 1.17%) expires in 2014 1,487 (3) - -

Total (21) (64)

Of which recognised in income statement - -


The market value is recognised in other payables

The DKK, EUR and USD interest rate swaps all expire in 2014 and are recognised in the income statement until expiry.



Note DKK million


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

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

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

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

2011

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

Finacial assets Securities 172 - - 172

Total financial assets 172 - - 172

Financial liabilities Derivative financial instruments to hedge future cash flows - 21 - 21Derivative financial instruments to hedge net investments in foreign enterprises - 18 - 18

Total financial liabilities - 39 - 39

2010

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

Finacial assets Securities 372 - - 372Derivative financial instruments to hedge net investments in foreign enterprises - 5 - 5

Total financial assets 372 5 - 377

Financial liabilities Derivative financial instruments to hedge future cash flows - 64 - 64Derivative financial instruments to hedge net investments in foreign enterprises - 6 - 6

Total financial liabilities - 70 - 70




36 Assets held for sale

Falck has decided to sell its subsidiary that provides rescue services in Brazil as it has been decided to focus on the private and business market as a basis for growth in Brazil going forward. An impairment write-down to fair value less expected costs to sell has therefore been recognised in respect of the investment. The impairment charge has been recognised in the consolidated income statement under exceptional items.

An agreement to sell the company was signed on 17 February 2012. The divestment will not affect profit for the 2012 financial year.

Assets and liabilities relating to assets held for sale can be broken down into the following main groups.

Receivables 92 -Other current assets 6 -

Total assets held for sale 98 -

Non-current liabilities 23 -Current liabilities 75 -

Total liabilities relating to assets held for sale 98 -

37 Related parties

Falck A/S is subject to controlling influence by Falck Holding A/S, Polititorvet 1, DK-1567 Copenhagen V, Denmark, which holds 98.8% of the company's share capital.

Falck A/S has registered the following shareholders who hold 5% or more of the share capital:Falck Holding A/S 98.8% 0.0%Lundbeckfond Invest A/S, Hellerup - 36.0%Falck L.P., Jersey - 43.9%ATP PEP 1 K/S, Copenhagen - 6.4%Liberatio A/S, Aarhus (owned by the members of the Executive Management Board) - 5.2%

Trading with these related parties has been as follows:

Costs invoiced to Falck L.P. 8 6Interest rate swaps 1 -

The warrant programme was transferred to Falck Holding A/S in connection with the acquisi-tion of Falck A/S by Falck Holding A/S and was subsequently cancelled at an extraordinary general meeting of Falck A/S.

Falck A/S has hedged its interest rate risks through interest rate swaps with Falck Holding A/S, which has entered into corresponding interest rate swaps with banks.

ManagementRelated parties in Falck A/S with significant influence include the Executive Management Board and the Board of Directors and their close relatives. Related parties also comprise companies in which these individuals have material interests.

Trading with Management was as follows:New warrant programme, Executive Management Board 11 -Buy back of own warrants, Executive Management Board - 307Sale of own shares, Board of Directors - 1Sale of own shares, Executive Management Board - 29

The Group had no additional transactions with the members of the Executive Management Board, Board of Directors or other persons with significant influence other than the remuneration paid to the Management, stated in note 7. Warrants were bought back in 2010 at DKK 69.05 per warrant.




37 Related parties (continued)

AssociatesThe related parties of Falck A/S also include associates in which the company has significant influence. See note 17 and "Legal entities" for an overview of associates.

Trading with associates was as follows:

Sale of property, plant and equipment 28 -Purchase of services 23 38Lease costs 17 -

Receivables from associates are stated in the balance sheet, and interest thereon was DKK 0 million in 2011.

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

38 Events after the balance sheet date

On 17 February, Falck signed an agreement on the divestment of Toesa Ltda. The divestment will not affect profit for 2012.

On 9 February 2012, Falck signed an agreement to acquire 75% of the shares of VL Transport Sanitari and Grup VL Serveis Sanitaris for DKK 108 million. The companies operate ambulance services in Catalonia, Spain.


Contents of the parent company financial statements

Notes to the balance sheet

9. Investments in subsidiaries 100

10. Share capital and treasury shares 100

11. Deferred tax 100

12. Credit institutions 101

13. Other payables 102

Notes to the cash flow statement

14. Net financials 102

15. Other movements relating to shareholders 102

Supplementary notes

16. Contingent liabilities, contractual obligations

and collateral security 102

17. Financial instruments 103

18. Related parties 106

Financial statements

Income statement 91

Statement of comprehensive income 92

Cash flow statement 93

Balance sheet 94

Equity statement 96

Notes to the financial statements

1. Accounting policies 97

Notes to the income statement

2. Other operating income 98

3. Fees to auditors appointed at the annual

general meeting 98

4. Staff costs 98

5. Exceptional items 99

6. Financial income 99

7. Financial expenses 99

8. Income taxes 99

Parent Company | Falck Annual Report 2011 91


2 Other operating income 6 73 Other external costs (6) 24 Staff costs (7) (13)

Operating profit before exceptional items (7) (4)

5 Exceptional items (5) (20)

PROFIT/(LOSS) BEFORE FINANCIALS (12) (24) Dividends from Group companies 625 5576 Financial income 31 147 Financial expenses (201) (96)

PROFIT BEFORE TAX 443 4518 Income taxes 44 20

PROFIT FOR THE YEAR 487 471

PROPOSED PROFIT ALLOCATION Proposed dividend - - Retained earnings 487 471

TOTAL 487 471

DIVIDEND PER SHARE Dividend per share - -

Income statement for the year ended 31 December

92 Falck Annual Report 2011 | Parent Company


Value adjustment of currency hedging instruments 51 - Value adjustment of interest hedging instruments - 28 Tax on other comprehensive income (13) (1)

Other comprehensive income after tax 38 1 Profit for the year 487 471

TOTAL COmPREHENSIVE INCOmE 525 472

Statement of comprehensive income for the year ended 31 December


Cash flow statement for the year ended 31 December


Total revenue 6 7 Total costs (13) (11)

Operating profit before exceptional items (7) (4) Changes in outstanding balances with Group companies - 42 Exceptional items (5) (20) 14 Net financials (120) (82) 8 Income taxes paid (13) 30

CASH FLOW FROm OPERATING ACTIVITIES (145) (34)

Dividends received from Group companies 625 557 15 Other movements relating to shareholders (296) 24 Changes in interest-bearing outstanding balances with Group companies 472 (776) Interest-bearing debt raised 2,374 522 Repayment of and change in interest-bearing debt (3,038) (286)

CASH FLOW FROm FINANCING ACTIVITIES 137 41

Change in cash (8) 7

Cash at beginning of year 8 1

CASH AT YEAR-END - 8



Assets

9 Investments in subsidiaries 3,249 3,249 Receivables from Group companies 106 378

TOTAL FINANCIAL ASSETS 3,355 3,627

TOTAL NON-CURRENT ASSETS 3,355 3,627

Receivables from Group companies 814 992 Income taxes 11 -

Cash - 8

TOTAL CURRENT ASSETS 825 1,000

TOTAL ASSETS 4,180 4,627




Equity and liabilities

10 Share capital 46 46 Hedging reserve (10) (48) Retained earnings 1,645 1,454

TOTAL EQUITY 1,681 1,452

11 Deferred tax 21 30 12 Credit institutions 2,401 2,721 Payables to Group companies 56 34

TOTAL NON-CURRENT DEBT 2,478 2,785

12 Credit institutions 21 302 Income taxes - 24 13 Other payables - 64

TOTAL CURRENT DEBT 21 390

TOTAL EQUITY AND LIABILITIES 4,180 4,627



Equity statement

Reserve for Share treasury Hedging Retained 2011 DKK million capital shares reserve earnings Total

Equity at 1 January 2011 46 - (48) 1,454 1,452

Equity movements in 2011Settlement of interest hedging instruments 51 51Value adjustment of interest hedging instruments - -Tax on other comprehensive income (13) (13)

Other comprehensive income - - 38 - 38Profit for the year 487 487

Total comprehensive income - - 38 487 525Issuance of warrants 11 11Buy back of warrants from subsidiaries (307) (307)

Total equity movements in 2011 - - 38 191 229

EQUITY AT 31 DECEmBER 2011 46 - (10) 1,645 1,681

2010 DKK million

Equity at 1 January 2010 46 (8) (49) 967 956

Equity movements in 2010

Value adjustment of interest hedging instruments 2 2Tax on other comprehensive income (1) (1)

Other comprehensive income - - 1 - 1Profit for the year 471 471

Total comprehensive income - - 1 471 472Capital increase -Buy back of treasury shares (6) (6)Sale of treasury shares 14 16 30

Total equity movements in 2010 - 8 1 487 496

EQUITY AT 31 DECEmBER 2010 46 - (48) 1,454 1,452

Notes to the parent company financial statements


Note

1 Accounting policies

The separate financial statements of Falck A/S (the parent company) have been incorporated into the annual report in compliance with the provisions of the Danish Financial Statements Act requiring separate parent company financial statements for companies having adopted IFRS.

The parent company's financial statements are presented in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and additional Danish disclosure requirements for annual reports for accounting class C large, cf. the IFRS Order issued pursuant to the Danish Companies Act. The annual report also complies with the International Financial Reporting Standards as issued by the IASB.

ImPLEmENTATION OF NEW FINANCIAL REPORTING STANDARDSSee note 1 to the consolidated financial statements for a description.

ACCOUNTING POLICIES The accounting policies applied by the parent company deviate from the accounting policies set out in note 1 to the consolidated financial statements in the following respects:

FOREIGN CURRENCY TRANSLATIONForeign exchange adjustment of balances that are consid-ered as part of the overall net investment in enterprises with functional currencies other than Danish kroner are recognised in the parent company's financial statements in the income statement under financials. Similarly, exchange gains and losses on the part of loans and derivative financial instruments effectively hedging the net investment in such enterprises are recognised directly in the income statement under financials.

REVENUEDistributions of retained earnings in subsidiaries are rec-ognised as income in the income statement of the parent company in the year in which the dividend is declared. An impairment test is made if more than the comprehensive income of a subsidiary is distributed.

INVESTmENTS IN SUBSIDIARIESInvestments in subsidiaries are measured at cost in the parent company financial statements. Cost includes the considera-tion at fair value plus direct acquisition costs.

If there is an indication of impairment, an impairment test is performed as described in the accounting policies applying to the consolidated financial statements. Where the carrying amount exceeds the recoverable amount, the investments are written down to this lower value.

In the event of distribution of other reserves than retained earnings in a subsidiary, such distribution will be deducted from the acquisition price, if the distribution is in the nature of repayment of the parent company's investment.




2 Other operating income

Management fees from Group companies 6 7

Total other operating income 6 7

3 Fees to auditors appointed at the annual general meeting

KPmGAudit (1) (1)Other assurance engagements - -Preparation of a potential IPO - (8)

Total fees (1) (9)

4 Staff costs

Ordinary remuneration to the Executive Management Board (4) (7)Remuneration to the Executive Management Board relating to preparation of a potential IPO - (7)Remuneration to the Board of Directors (3) (2)

Total (7) (16)Of which reinvoiced - 3

Total staff costs (7) (13)

Number of full-time employees 1 2

Remuneration to the Executive Management Board does not include pension contributions

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

Warrant programme, Executive management BoardNumber of warrants at 1 January - 4,443,120Grant of new warrants. See note 21 to the Group financial statements 4,443,120 -Cancellation of new warrants. See note 21 to the Group financial statements (4,443,120) (4,443,120)

Number of warrants at 31 December - -

At the extraordinary general meeting held on 25 February 2011, the Board of Directors was authorised to establish a new warrant programme. At the Board meeting held on 15 March 2011, the Board of Directors adopted a resolution to establish a new warrant pro-gramme for the Executive Management Board. The new warrant programme comprises 4,443,120 warrants. Each warrant entitles the holder to subscribe for one share with a nominal value of DKK 0.50 on 30 December 2015 at a price of DKK 125 per share. The warrants issued were acquired at market value, equivalent to DKK 11 million, and there are no conditions attached to the acquisition of the war-rants. The warrants issued have been transferred to Falck Holding A/S and subsequently cancelled at an extraordinary general meeting of Falck A/S.

The consideration to the Executive Management Board concerns the first half of 2011.




5 Exceptional items

Costs relating to sale of Falck A/S (5) (20)

Total exceptional items (5) (20)

6 Financial income

Foreign exchange gains 4 -Interest from Group companies 27 14

Total financial income 31 14

7 Financial expenses

Foreign exchange losses - (2)Interest to credit institutions (126) (94)Costs of debt restructuring (74) -Other financial expenses (1) -

Total financial expenses (201) (96)

8 Income taxes

Current tax 32 6Change in deferred tax for the year 12 15Prior-year adjustments - (1)

Total income taxes 44 20Tax on other comprehensive income (13) (1)

Total tax 31 19

Income taxes paid during the year (13) 30

Breakdown of tax rate: Total income taxes 44 20

Profit before tax 443 451Dividends from Group companies (625) (557)

Tax base for current tax (182) (106)


Reconciliation of tax rate: Danish tax rate 25.0% 25.0%Non-deductible costs/(tax-exempt income) (1.0%) (4.6%)Other adjustments including adjustments relating to prior years 0.2% (1.5%)


Tax on other comprehensive income Tax on value adjustments of interest hedging instruments (13) (1)

Total tax on other comprehensive income (13) (1)




9 Investments in subsidiaries

Cost at 1 January 3,249 3,249

Cost at 31 December 3,249 3,249

Carrying amount at 31 December 3,249 3,249

See "Legal entities" for a list of companies

10 Share capital and treasury shares

A capital increase of DKK 1 million was made in 2009. There have been no other changes to the share capital during the past five years.

The share capital is divided into 92,786,800 shares (2010: 92,786,800 shares) with a nominal value of DKK 0.50 each. The shares are fully paid up and are not divided into classes.

Nominal value Number of shares (DKK thousand) % of share capital Treasury shares 2011 2010 2011 2010 2011 2010

Treasury shares at 1 January - 258,219 - 129 - 0.29Additions - 95,238 - 48 - 0.10Disposals - (353,457) - (177) - (0.39)

Treasury shares at 31 December - - - - - -

The purchase price of treasury shares acquired during the financial year was DKK 0 million (2010: DKK 6 million).The sales price of treasury shares sold during the financial year was DKK 0 million (2010: DKK 30 million).


11 Deferred tax

Deferred tax provisions at 1 January 30 45Change in deferred tax for the year (12) (15)Change in deferred tax for prior years 3 -


Deferred tax provision 21 30


Breakdown of deferred tax: Intangible assets 21 32Non-current debt and provisions - (2)





12 Credit institutions

Non-current liabilities: Long-term loans 2,401 2,721Current liabilities: Short-term loans 21 302

Total credit institutions 2,422 3,023

Breakdown by maturity: Due within 1 year 21 302Due between 1 and 5 years 535 2,721Due after 5 years 1,866 -

Total 2,422 3,023

Breakdown by currency: DKK 1,539 1,921EUR 683 853USD 200 249

Total 2,422 3,023

Interest reset periods: Within 3 months 2,422 3,023

Total 2,422 3,023

The statements set out above do not include liabilities relating to interest for subsequent financial periods. See note 35 to the Group financial statements for a description of the Group's risks and cash resources.

The effective interest rate has been determined at 4.2% (2010: 3.2%).

For debt with an interest reset period within 3 months, regular assessments are made of how long the interest period should be. As at the balance sheet date, the interest rate in DKK was fixed for one month and averaged approximately 3.4% (2010: 1.8%).

As at the balance sheet date, the interest rate in EUR was fixed for one month and averaged approximately 3.5% (2010: 1.0%) during the financial year. As at the balance sheet date, the interest rate in USD was fixed for one month and averaged approximately 2.6% (2010: 0.7%) during the financial year.

The market value of debt with an interest reset period within 3 months is approximately DKK 2,445 million (2010: DKK 3,024 million).

DKK 35 million (2010: DKK 25 million) of capitalised loan costs has been deducted from the carrying amount of debt.




13 Other payables

Fair value of interest rate collar - 64

Total other payables - 64

14 Net financials

Financial income and expenses (170) (82)Of which unrealised gains and losses (4) -Repayment of interest rate swaps offset against loan proceeds 51 -Change in amortised borrowing costs 3 -

Total net financials (120) (82)

15 Other movements relating to shareholders

Acquisition of rights from subsidiaries (307) -Acquisition of treasury shares - (6)Disposal of treasury shares - 30Issuance of warrants 11 -

Total other movements relating to shareholders (296) 24

16 Contingent liabilities, contractual obligations and collateral security

Falck A/S is jointly and severally liable for the Group’s overall VAT liability together with other jointly registered Danish enterprises.

A portion of the Company's cash is deposited in bank accounts which are included in a cash pool under which Falck Danmark A/S controls the principal facility account. The companies are jointly and severally liable with the total deposits on the said accounts vis-à-vis the bank in question.

The shares in the subsidiary Falck Danmark A/S have been provided as collateral for debt in Falck A/S.



Note DKK million

17 Financial instruments

There are continuing developments in the risk exposure of Falck A/S as a result of changes in its debt. The company monitors these risks in an ongoing process and hedges them, if necessary. There are no material changes in the company's risk management as compared to 2010. See also note 35 to the consolidated financial statements of Falck A/S.

Foreign exchange risk 2011 2010

The hypothetical impact on the Probable Hypothetical Probable Hypothetical profit for the year and the change in impact Hypothetical change in impact Hypothetical equity from reasonably probable exchange on profit impact exchange on profit impact changes in exchange rates: rate for the year on equity rate for the year on equity

EUR/DKK 1% 15 15 1% 9 9

Interest rate riskThe interest rate risk of Falck A/S is mainly affected by the company's syndicated financing. Based on the current market situation, the Executive Management Board and Board of Directors have decided to swap approximately 81% of Falck A/S's syndicated financing to fixed rates via interest rate swaps, and the rest of the syndicated financing is to be based on short-term interest rates. The company is therefore sensitive to fluctuations in market interest rates, and a fluctuation by 1% would change the interest expense for the year by DKK 5 million (2010: DKK 13 million) as a large part of the interest rate risk is hedged by interest rate swaps. Without these hedges, a fluctuation by 1% would change the company's interest expense by DKK 25 million (2010: DKK 34 million).

The interest rate swaps mentioned above ensure that interest rates during the hedging period on part of the debt denominated in DKK cannot exceed 1.4%, and that interest rates on part of the debt denominated in EUR cannot exceed 1.17%.

Falck A/S monitors developments in market interest rates closely so that it can react if the market situation changes. Assumptions regarding sensitivity information: The sensitivity stated has been determined based on the recognised financial assets and liabilities as at 31 December 2011. No adjust-ment has been made for servicing and raising of debt or the like in 2011. Furthermore, it is assumed that all hedges of floating-rate loans are deemed to be effective.

maturity analysis of financial assets and liabilities Assumptions applied in the maturity analysis: The maturity analysis is based on all non-discounted cash flows including estimated interest payments. Interest payments have been estimated based on the current market conditions.

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



Note DKK million


Due Due Due Contrac- within between between Due tual Total one 1 and 3 3 and 5 after 5 cash carrying market Contractual cash flows including interest 2011 year years years years flows amount value

Financial assets: Receivables from Group companies 106 814 - - 920 920 920

Loans and receivables 106 814 - - 920 920 920

Total financial assets 106 814 - - 920 920 920

Financial liabilities: Credit institutions 123 411 498 1,990 3,022 2,422 2,422Payables to Group companies 44 - - - 44 44 44

Financial liabilities measured at amortised cost 167 411 498 1,990 3,066 2,466 2,466

Derivative financial instruments to hedge future cash flows 12 12 12 12

Financial liabilities used as hedging instruments - 12 - - 12 12 12

Total financial liabilities 167 423 498 1,990 3,078 2,478 2,478

Due Due Due Contrac- within between between Due tual Total one 1 and 3 3 and 5 after 5 cash carrying market Contractual cash flows including interest 2010 year years years years flows amount value

Financial assets: Receivables from Group companies 992 378 - - 1,370 1,370 1,370Cash 8 - - - 8 8 8

Loans and receivables 1,000 378 - - 1,378 1,378 1,378

Total financial assets 1,000 378 - - 1,378 1,378 1,378

Financial liabilities: Credit institutions 368 2,836 - - 3,204 3,023 3,024Payables to Group companies 34 - - - 34 34 34

Financial liabilities measured at amortised cost 402 2,836 - - 3,238 3,057 3,058

Derivative financial instruments to hedge future cash flows 32 25 57 64 64


Total financial liabilities 434 2,861 - - 3,295 3,121 3,122



Note DKK million


Hedging and derivative financial instruments 2011 2010

Hedged market Hedged market Interest rate collar: value value value value

DKK collar (floor 3.25% / cap 5.5%) repaid in 2011 - - 855 (30)EUR collar (floor 3.25% / cap 5.5%) repaid in 2011 - - 855 (34)DKK interest rate swap (fixed rate1.4%) expires in 2014 500 (9) - -EUR interest rate swap (fixed rate 1.17%) expires in 2014 1,487 (3) - -

(12) (64)Of which recognised in income statement - -


The market value is recognised in other payables.

methods and assumptions for the determination of fair valuesInterest rate swaps are valued using generally accepted valuation techniques based on relevant observable swap curves.

2011

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

Financial liabilities Derivative financial instruments to hedge future cash flows 0 12 0 12

Total financial liabilities 0 12 0 12

2010

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

Financial liabilities Derivative financial instruments to hedge future cash flows 0 64 0 64

Total financial liabilities 0 64 0 64




18 Related parties

As a parent company, Falck A/S has a controlling interest in the Group.

Falck A/S has registered the following shareholders who hold 5% or more of the share capital:Falck Holding A/S 98.8% 0.0%Lundbeckfond Invest A/S, Hellerup - 36.0%Falck L.P., Jersey - 43.9%ATP PEP 1 K/S, Copenhagen - 6.4%Liberatio A/S, Aarhus (owned by the members of the Executive Management Board) - 5.2% Trading with these related parties has been as follows: Costs invoiced to Falck L.P. 8 6Interest rate swaps 1 - The warrant programme was transferred to Falck Holding A/S in connection with the acqui-sition of Falck A/S by Falck Holding A/S, and was subsequently cancelled at an extraordinary general meeting of Falck A/S.

Falck A/S has hedged its interest rate risks through interest rate swaps with Falck Holding A/S, which has entered into corresponding interest rate swaps with banks.

managementRelated parties in Falck A/S with significant influence include the Executive Management Board and the Board of Directors and their close relatives. Related parties also comprise companies in which these individuals have material interests.

Trading with Management was as follows:

New warrant programme, Executive Management Board 11 -Sale of own shares, Board of Directors - 1Sale of own shares, Executive Management Board - 29

Falck A/S had no additional transactions with the members of the Executive Management Board, Board of Directors or other persons with significant influence other than the remunera-tion paid to the Management, stated in note 7 to the Group financial statements.

Group companiesThe related parties of Falck A/S also include Group companies in which the company has a controlling interest. See note "Legal entities" for an overview of Group companies.

Trading with Group companies was as follows:

Interest from Group companies 27 14Management fee paid 2 3Management fee received 6 7Dividends from Group companies 625 557

Statements | Falck Annual Report 2011 107

Management’s statement

The Board of Directors and the Executive Management Board today considered and approved the annual report of Falck A/S for 2011.

The annual report has been prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the EU and additional Danish disclosure requirements for annual reports. In our opinion, the accounting policies are appropriate, and the Group’s and the parent company’s financial statements give a true and fair view of the Group’s and parent company’s assets, liabilities and financial position as at 31 December 2011 and of the results of the Group’s and parent company’s operations and cash flows for the financial year 1 January – 31 December 2011.

Furthermore, in our opinion, the management review includes a fair review of developments in the Group’s and the parent company’s activities and finances, the profit for the year and the Group’s and the parent company’s financial position.

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

Copenhagen, 16 March 2012

Executive management Board:

Allan Søgaard Larsen Morten R. Pedersen President and CEO Deputy CEO

Board of Directors:

Lars Nørby Johansen Thorleif Krarup Steen HemmingsenChairman Deputy Chairman

Søren Thorup Sørensen Johannes Due Henrik Poulsen

Vagn Flink Møller Pedersen* Jan Heine Lauvring* Per Aastrup*

* Elected by the employees

108 Falck Annual Report 2011 | Statements

Independent auditors' report

To the shareholders of Falck A/S

Independent auditors' report on the consolidated financial statements and the parent company financial statementsWe have audited the consolidated financial statements and the parent company financial statements of Falck A/S for the financial year 1 January – 31 December 2011. The consolidated financial statements and the parent company financial statements comprise income statement, statement of comprehensive income, balance sheet, statement of changes in equity, cash flow statement and notes, includ-ing a summary of significant accounting policies for the Group as well as for the parent company. The consolidated financial statements and the parent company financial statements are prepared in accordance with International Financial Reporting Standards as adopted by the EU and additional disclosure requirements in the Danish Financial Statements Act.

management's responsibility for the consolidated financial statements and the parent company financial statementsManagement is responsible for the preparation of consolidated financial statements and parent company financial statements that give a true and fair view in accordance with International Financial Reporting Standards as adopted by the EU and additional disclosure requirements in the Danish Financial Statements Act and for such internal control that Management determines is necessary to enable the preparation of consolidated financial statements and parent company financial statements that are free from material misstate-ment, whether due to fraud or error.

Auditors' responsibility Our responsibility is to express an opinion on the consolidated financial statements and the parent company financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing and additional requirements under Danish audit regulation. This requires that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance as to whether the consolidated financial statements and the parent company financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial state-ments and the parent company financial statements. The procedures selected depend on the auditors' judgement, including the as-sessment of the risks of material misstatement of the consolidated financial statements and the parent company financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the Company's prepa-ration of consolidated financial statements and parent company financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by Management, as well as evaluating the overall presentation of the consolidated financial statements and the parent company financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Our audit has not resulted in any qualification.

OpinionIn our opinion, the consolidated financial statements and the parent company financial statements give a true and fair view of the Group's and the parent company's financial position at 31 December 2011 and of the results of the Group's and the parent company's operations and cash flows for the financial year 1 January – 31 December 2011 in accordance with International Financial Reporting Standards as adopted by the EU and additional disclosure requirements in the Danish Financial Statements Act.

Statement on the management's reviewPursuant to the Danish Financial Statements Act, we have read the Management's review. We have not performed any further proce-dures in addition to the audit of the consolidated financial statements and the parent company financial statements. On this basis, it is our opinion that the information provided in the Management's review is consistent with the consolidated financial statements and the parent company financial statements.

Copenhagen, 16 March 2012

KPmGStatsautoriseret Revisionspartnerselskab

Flemming Brokhattingen Søren Kok OlsenState Authorised Public Accountant State Authorised Public Accountant

Board of Directors, Executive Management Board and auditors

BOARD OF DIRECTORS

Lars Nørby Johansen, born 1949Chairman

Member of the boards of directors of:•WilliamDemantHoldingA/S(chairman)•GeorgJensenA/S(chairman)•DanmarksVækstråd(chairman)•Danskvækstkapital(chairman)•SyddanskUniversitet(chairman)•DONGEnergyA/S(deputychairman)•Rockwoolfonden(deputychairman)•IndexAwardA/S•CodanA/SandCodanForsikringA/S•Arp-HansenHotelGroupA/S•Institutforselskabsledelse

Thorleif Krarup, born 1952Deputy Chairman

Member of the boards of directors of: •SportOneDanmarkA/S(chairman)•ExiqonA/S(chairman)•ALK-AbellóA/S(chairman)•H.LundbeckA/S(deputychairman)•LundbeckfondInvestA/S(deputychairman)•TheLundbeckFoundation•BiscaA/S

Steen Hemmingsen, born 1945Member of the boards of directors of: •H.J.HansenHoldingA/S(chairman)•H.J.HansenGenvindingsindustriA/S(chairman)•MaxBankaf2011A/S(chairman)•Obel-LFIEjendommeA/S(deputychairman)•Amagerbankenaf2011A/S•DetØstasiatiskeKompagnisAlmennyttigeFond

Søren Thorup Sørensen, born 1965CEO of KIRKBI A/S and KIRKBI Invest A/S

Member of the boards of directors of:•K&CHolding(chairman)•KIRKBIAG(deputychairman)•INTERLEGOAG(deputychairman)•LEGOA/S•LEGOJurisA/S•KIRKBIInvestA/S•KIRKBIEstatesLimited•TopdanmarkA/SandTopdanmarkForsikringA/S•TDCA/S•Koldingvej2,BillundA/S•MerlinEntertainmentsGroup

Johannes Due, born 1949 CEO of Sygeforsikringen "danmark"

Member of the boards of directors of: •ForsikringsselskabernesDataCentral(chairman)•Administrationsselskabet"danmark"A/S(chairman)•ThePreventionfund(chairman)•KREVI(chairman)•TheRoyalDanishAcademyofFineArtsSchoolsofArchitecture,

Design and Conservation) (chairman)•Bikuben Fonden and Kollegiefonden Bikuben (deputy chairman) •TheDanishInsuranceAssociation•InternationalFederationofHealthPlans

Henrik Poulsen, born 1967CEO of TDC A/S

Member of the boards of directors of: •YouSeeA/S(chairman)•Chr.HansenHoldingA/S•Danmark-AmerikaFondet

Vagn Flink møller Pedersen, born 1957Rescue OfficerElected by the employees

Jan Heine Lauvring, born 1953Rescue OfficerElected by the employees

Per Aastrup, born 1959Rescue OfficerElected by the employees

B oard of Directors and Executive Management Board | Falck Annual Report 2011 109

110 Falck Annual Report 2011 | B oard of Directors and Executive Management Board

EXECUTIVE mANAGEmENT BOARD OF FALCK A/S

Allan Søgaard Larsen, born 1956President and CEO

Member of the boards of directors of: •PensionDanmarkHoldingA/S•AMBUA/S•TheCentralboardoftheConfederationofDanishIndustry

morten R. Pedersen, born 1968Deputy CEO

AUDITORS APPOINTED BY THE GENERAL mEETING

KPMGOsvald Helmuths Vej 2DK-2000 Frederiksberg Denmarkby/Flemming Brokhattingen and Søren Kok Olsen State Authorised Public Accountants

COmPANY INFORmATION

Falck A/SPolititorvetDK-1780 Copenhagen VDenmarkTel.: 45 70 33 33 11www.falck.comwww.falck.dkCVR no. 28 10 13 76


Legal entities in the Falck Group as at 31 December

Falck A/S Denmark Falck Danmark A/S Denmark 100% Falck Health Care Holding A/S Denmark 100% Falck Health Care A/S Denmark 100% HealthCare Danmark ApS Denmark 100% ActivCare A/S Denmark 100% ActivCare Privat A/S Denmark 100% Ulfab Danmark A/S Denmark 100% Vikteam A/S Denmark 80% FalckHjælpemidlerA/S Denmark 92% Falck JobService A/S Denmark 85% Falck Hjemmepleje A/S Denmark 100% Lone Hovmand Sundhedsafdeling A/S Denmark 100% North Securities A/S2) Denmark 49% Falck Norge Holding AS Norway 100% Falck Redning AS Norway 100% Stor Oslo Service AS Norway 100% Falck Emergency AS Norway 100% Falck Ambulanse AS Norway 100% Falck Norge Leasing AS Norway 100% Falck Health Care Norge AS Norway 100% Falck Sevices AS Norway 100% Falck Nutec Holding A/S Denmark 100% Falck Nutec Esbjerg A/S Denmark 100% Falck Nutec Management A/S Denmark 100% Falck Global Safety B.V. The Netherlands 100% Falck Nutec AS Norway 100% Falck Nutec Ltd. UK 100% Nutec Centre for Safety Ltd.1) UK 100% Falck Onsite Limited UK 100% Onsite Training Services Limited.1) UK 100% FalckNutecTrinidadandTobagoLimited Trinidad&Tobago 80% Nutec UK Ltd. UK 100% Nutec Belgium Holding BVBA 1) Belgium 100% Nutec Belgium BVBA 1) Belgium 100% Falck Nutec B.V. The Netherlands 100% Marinesafety International Rotterdam B.V. The Netherlands 100% MSTS Asia Sdn. Bhd. Malaysia 70% Risktec (M) Sdn. Bhd. Malaysia 100% Falck Bestari Healthcare Sdn Bhd Malaysia 82% MSTS Asia (S'pore) Pte. Ltd. Singapore 100% Falck Bedrijfshulpverlening BV The Netherlands 100% Falck Prime Atlantic Limited Nigeria 51% Falck caspian Safe LLC Aserbajdsjan 65% Falck Nutec Brasil Participacoes Ltda Brazil 100% Falck Nutec Brasil Treinamentos em Segurança Marítima Ltda Brazil 100% Southfield Ltd Thailand 50% Falck Nutec (Thailand) Ltd Thailand 65% Falck Nutec Nigeria Limited Nigeria 51% Falck USA Holdings, Inc USA 100% Falck Alford Holdings, Inc USA 80% Alford Services, Inc USA 100% Alford Safety Services, Inc USA 100% AlfordSafety&Compliance,L.L.C. USA 100% Haztec Services - West Indies, L.L.C. USA 100% Haztec Services St. Lucia Ltd St. Lucia 100% HaztecServicesTrinidadLimited Trinidad&Tobago 100%

Company name Country Equity interest



Falck Alford International BV The Netherlands 100% Falck Alford Holding S.A. de C.V. Mexico 100% Falck Alford Training S.A.I.P. de C.V. Mexico 100% Falck Nutec Vietnam Limited Vietnam 80% Falck Safety Services LLC UAE 49% Falck Investment Norge AS Norway 100% Falck Followit Norge AS Norway 100% VIFA AB Sweden 100% Falck Sverige Holding AB Sweden 100% Falck Investment Sverige AB Sweden 100% Falck Räddningskär AB Sweden 100% Falck Forsäkrings AB Sweden 100% Falck TravelCare AB Sweden 100% Falck Ambulans AB Sweden 100% Falck Räddningstjänst AB Sweden 100% Falck Services AB Sweden 100% Svensk Sjöambulans AB2) Sweden 50% UlfabSairaankuljetusOY Finland 100% S Reg Holding A/S Denmark 100% S Reg AB Sweden 100% S Reg Service AB Sweden 100% S Reg A/S Denmark 100% S Reg Oy Finland 100% S Reg AS Norway 100% Falck USA, Inc. USA 100% FCA Corp. USA 87% Care Ambulance Service, Inc. USA 100% Falck EMS Corp. USA 95% Lifestar Response Corporation, Inc. USA 100% Lifestar Response of Alabama, Inc. USA 100% Medibus, Inc. USA 100% STAT Equipment Corp. USA 100% STAT EMS, LLC USA 51% Bi-CountyAmbulance&AmbuletteTransportServicesCorp. USA 100% Lifestar Response of New Jersey, Inc. USA 100% Lifestar Response of Maryland, Inc. USA 100% Access Transport Services Holding, Inc. USA 100% Access on Time Language Services LLC USA 100% Home Care Equipment, Inc. USA 100% Robinson'sAmbulance&OxygenService,Inc. USA 100% Falck Southeast Corp. USA 100% Falck Health Care Sverige Holding AB Sweden 100% FalckAM Health Care AB Sweden 100% Falck Health Care AM A/S Denmark 100% Falck Aktiv Arbetsmedicin AB Sweden 100% Falck Healthcare AB Sweden 100% Falck Investments Finland Oy Ab Finland 100% Falck Finland Oy Finland 100% Falck Oy Finland 100% Falck Autoabi OÜ Estonia 100% Falck Benelux NV Belgium 93% Ambuce Rescue Team BVBA Belgium 100% Ambuce Limburg BVBA Belgium 100% MDV International BVBA Belgium 100% Falck Investments NV Belgium 80% Falck Medical Services LLC UAE 49% Falck Eurasia B.V. The Netherlands 95%




Beijing Falck Rescue Consulting Services Co., Ltd China 100% Falck Kazakhstan LLP Kazakhstan 100% Falck Fire Services Rus LLC Russia 100% Falck Foundation VZW Belgium 100% Falck Medycyna Sp.z o.o. Poland 100% Starowka sp zo.o Poland 75% Falck SK a.s. Slovakia 93% Falck Emergency AS Slovakia 51% Falck Záchranná a.s. Slovakia 100% Falck Academy s.r.o. Slovakia 100% La Salus, a.s. Slovakia 100% La Salus Phrama s.r.o. Slovakia 100% Falck Fire Services a.s. Slovakia 100% Falck CZ a.s. Czech Republic 93% Lainsa Servicios Contra Incendios, S.A. Spain 51% Falck France SAS France 100% Falck AVD Holding B.V. The Netherlands 100% Falck AVD B.V. The Netherlands 100% Advisebureau van Dijke B.V. The Netherlands 100% AVD-ICT B.V. The Netherlands 100% Safety Center Holding B.V. The Netherlands 100% Safety Center Holland B.V. The Netherlands 100% Safety Center Zuid Holland B.V. The Netherlands 100% Safety Center Colleage c.v. The Netherlands 51% Safety Center Zuid Holland c.v. The Netherlands 52% MIT B.V. The Netherlands 100% Safe Building B.V. The Netherlands 100% Safety Center Team B.V. The Netherlands 100% AVD Consultancy N.V. Belgium 100% Falck Brasil AVD Participações Ltda. Brazil 100% Falck Brasil Plano de Saúde Ltda. Brazil 100% Falck Brasil 747 Participações Ltda. Brazil 100% Toesa Service S.A. Brazil 60% Tefe Tefe Servicos de Saude Ltda Brazil 100% Falck Brasil FF Participações Ltda. Brazil 100% FalckFire&SafetydoBrasilS.A. Brazil 100% Falck Panama Holding S.A. Panama 100% EMI Holdings Management S.A. Panama 63% EMI Foreign Holdings 1 S.A. Panama 100% EMI Foreign Holdings 2 S.A. Panama 100% EMI Foreign Holdings 3 S.A. Panama 100% EMI Foreign Holdings 4 S.A. Panama 100% Empresa de Medicina Prepagada

- Servicio de Ambulancia Prepagada - Grupo EMI S.A. Colombia 100% EMI El Salvador S.A. de C.V. El Salvador 100% Inversiones EMI Worldwide S.A. Panama 100% EMI Panama S.A. Panama 100% EMI Ecuador S.A.- Emergencia Medica Integral Ecuador 100% Perses S.A. Uruguay 100% Portovenus S.A. Uruguay 16% EMI Venezuela Holding S.A. Panama 100% Emergencia Medica Integral EMI Centro S.A. Venezuela 100% Centro Medico Integral CEMICA S.A. Venezuela 100%




Panamedical Health Systems S.A. Panama 100% Solution Services International Inc. Panama 100% Scandinavian Worldwide Capital Corp. Panama 100% Rheades Business Inc. Panama 100% Right Connection Services Corp. Panama 100% Servicio Emergencias Regional SER S.A. Colombia 100% Falck Rettungsdienst GmbH Germany 100% Kranken-Transport Herzig GmbH Germany 100% KS-Medi-Service GmbH Germany 100% Falck Österreich GmbH Austria 100% FalckYardimHizmetleriLimitedSirketi Turkey 95% Falck UK Limited UK 100% Falck EMS UK Limited UK 100% Resource Protection International Ltd. UK 100% Falck India Limited UK 93% Falck Services Limited Mauritius 100% Falck India Pvt. Ltd. India 100% Falck Services Pvt Ltd. India 100% Falck Fire Services S.R.L Romania 93% Falck Treasury A/S Denmark 100% Investeringsselskabet af 17. december 2007 A/S Denmark 100% Falck Asset Management 9 A/S Denmark 100% Falck DRF Luftambulance A/S Denmark 51% A C Trafik A/S Denmark 100% A C Trafik 2 ApS Denmark 100% KPC Ejendomme af 6. juni 2002 A/S2) Denmark 25% Falck Nederland Holding B.V. The Netherlands 100%


1) Associated company2) The company is at present without activity (dormant)


Definitions of ratios | Falck Annual Report 2011 115

Definitions of ratios

The ratios are basically calculated on the basis of the annual report and the Group’s accounting policies. The Falck Group cal-culates a number of ratios on the basis of the financial-highlight figures in “Financial highlights and key ratios” on page 2. The definitions of those ratios are stated below.

Organic growthGrowth in external revenue in local currency relative to the pre-ceding year adjusted for:

•Acquisitions:Revenuerelatingtoacquiredentitiesoroperationsgenerated in the current year is not included. For entities or operations acquired in the preceding year, revenue generated in the current year is only included from the time when revenue is recognised in the comparative period for the preceding year.

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

•Contracts:Materialcontractsenteredintobeforeorduringtheyear after the acquisitions, where Falck has had a material im-pact on the contract in question, are recognised in revenue and considered organic growth. Any material isolated operations which Falck terminates or public-sector customers' insourcing of tasks without invitations for tender are considered divestments.

•Redefinitionofsegments:Revenuerelatedtoentitiesthatareredefined to another segment are accounted for as acquisitions and divestments, as the case may be, in the respective business segments.

EBITA margin Operating profit before costs and amortisation from business combinations and exceptional items (EBITA) as a percentage of revenue.

Effective tax rateTax charged in respect of the financial year as a percentage of profit before tax.

Net capital investmentsInvestments in land and buildings, operating equipment and intangible assets less land and buildings, operating equipment and intangible assets sold.

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

Return on equityProfit for the year attributable to Falck as a percentage of average equity excluding non-controlling interests.

Net operating assetsNet operating assets excluding goodwill defined as trade receiva-bles and other current operating assets plus property, plant and equipment and intangible assets (excluding goodwill), less trade payables, other payables and other operating liabilities.

Net interest-bearing debt to EBITDANet interest-bearing debt and purchase consideration payable divided by EBITDA. EBITDA has been normalised for the full-year effect of acquisitions made during the period.

Free cash flowOperating profit before amortisation from business combinations and exceptional items (EBITA) adjusted for non-cash operating items and change in net operating assets.

Cash conversion rateFree cash flow as a percentage of operating profit before costs and amortisation from business combinations and exceptional items (EBITA). The rate of operating profit before costs and amortisation from business combinations and exceptional items (EBITA) to the free cash flow (cash conversion rate) shows the Group’s ability to generate cash flows from operating activities after investments in intangible assets and property, plant and equipment and cash that must be tied up in working capital in order to generate cash.

Earnings per share (EPS)Earnings attributable to the parent company’s shareholders per average number of outstanding shares.

Diluted earnings per share (DEPS)Diluted earnings attributable to the parent company’s sharehold-ers per diluted average number of outstanding shares.

Normalised profit after taxProfit for the year less costs and amortisation from business com-binations and exceptional items and tax thereon.

116 Falck Annual Report 2011

Designandgraphicproduction:meyer&bukdahlas

Falck A/SPolititorvet1780 Copenhagen VDenmark

Tel.: +45 70 33 33 11www.falck.comCVR no. 28 10 13 76

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