Annual Report 2010 - Falck

More documents

Recommendations

Info

Notes to the Group financial statements Group | Falck Annual Report 2010 89 Note DKK million 2010 2009 35 Contingent liabilities, contractual obligations and collateral security Contingent liabilities Other guarantee commitments 11 15 Total guarantee commitments 11 15 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 (2009: DKK 240 million) provided in connection with ambulance contracts in Denmark. As part of the Group's activities, usual supplier agreements have been entered into, and certain declarations of intent have been issued. 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 obligations Minimum lease payments for operating lease commitments: Due within 1 year 262 223 Due between 1 and 5 years 674 601 Due after 5 years 799 721 Operating lease commitments at 31 December 1,735 1,545 Net present value of lease commitments 1,444 1,346 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 275 238 The operating lease commitments concern leases for vehicles and buildings. The lease period for cars is typically between 4 and 9 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. 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 512 552 Bearer mortgages issued and used as collateral for credits 385 388 Unused bearer mortgages 15 16 See the note on liquidity risks for the conditions applicable to mortgaged assets.
90 Falck Annual Report 2010 | Group Notes to the Group financial statements Note DKK million 36 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 speculate actively in financial risks. Accordingly, the Group’s financial management exclusively involves the management and mitigation of financial risks that arise as a direct consequence of the Group’s operations, investments and financing. There were no changes in the Group's risk exposure or risk management as compared with 2009. Foreign exchange risk The Group’s foreign subsidiaries are not severely exposed to exchange rate fluctuations, as both revenue and most costs of the individual subsidiaries are denominated in the same currencies. The main exchange rate exposure faced by the Group relates to the translation 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. 63% of the Group’s revenue and earnings is denominated in Danish kroner (DKK) (2009: 65%). Other currencies that account for more than 5% of revenue or earnings are 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. Foreign exchange risk 2010 2009 The hypothetical impact on the Probable Hypothetical Probable Hypothetical profit for the year and the Group's 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% 9 9 1% 10 10 USD/DKK 10% - - 10% - 25 BRL/DKK 10% - 6 - - - NOK/DKK 5% - 3 5% - 3 GBP/DKK 5% - 4 5% - 2 PLN/DKK 10% - 6 10% - 5 SEK/DKK 5% - 14 5% - 6 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.
Page 1 and 2:
Annual Report 2010
Page 3 and 4:
USA Emergency Training 1,050 employ
Page 5:
Falck’s international expansion c
Page 9 and 10:
4 Falck Annual Report 2010 | Manage
Page 11 and 12:
6 Falck Annual Report 2010 | Group
Page 13 and 14:
8 Falck Annual Report 2010 | Manage
Page 15 and 16:
Ville Kalliomäki, age 29, assistan
Page 17 and 18:
12 Falck Annual Report 2010 | Manag
Page 19 and 20:
Emergency Valnizete Trindade de Mou
Page 21 and 22:
Page 23 and 24:
Page 25 and 26:
Healthcare Kelly Paterson, age 30,
Page 27 and 28:
Page 29 and 30:
Training Olugbenga Kuku, age 38, tr
Page 31 and 32:
Page 33 and 34:
Page 35 and 36:
Page 37 and 38:
Page 39 and 40:
Page 41 and 42:
Page 43 and 44: 38 Falck Annual Report 2010 | Manag
Page 55 and 56: 50 Falck Annual Report 2010 | Group
Page 93: 88 Falck Annual Report 2010 | Group
Page 103 and 104: 98 Falck Annual Report 2010 | Paren
Page 105 and 106: 100 Falck Annual Report 2010 | Pare
Page 117 and 118: 112 Falck Annual Report 2010 | Stat
Page 119 and 120: 114 Falck Annual Report 2010 | Boar
Page 121 and 122: 116 Falck Annual Report 2010 | Grou
Page 123 and 124: 118 Falck Annual Report 2010 | Grou
Page 125: 120 Falck Annual Report 2010 Design
show all

Annual Report 2010 - Falck

Create successful ePaper yourself

Delete template?

Save as template?