Positive trends in most of DDH business areas 

Development in figures

DDH realised pre-tax profits of DKK 34.0 million in 2011, against an expected figure of DKK 30.0 million. The profit from ordinary activities makes up DKK 47.9 million,
against a corresponding figure of DKK 41.6 million in 2010. This development can primarily be attributed to considerably better results in the consultancy enterprise,
Orbicon, in relation to 2010.

The profit returned has been achieved in spite of the challenges resulting from the global economic crisis and particularly unfavourable weather conditions in 2011.
The Executive Committee regards the profit for the year as satisfactory.

The development in the company’s results from 2010 to 2011 can primarily be attributed to the following factors:

• In spite of difficult weather conditions during both the summer and winter periods, HedeDanmark once again realised a satisfactory result, which corresponds to that in 2010.
• Satisfactory operational development in Orbicon.
• Focused operations in terms of energy production have had a positive effect on Hedeselskabet Sp. z o.o.’s annual results. Conversely, falling prices on carbon credits have had a negative effect on the results in Poland. Overall, the company has realised a result similar to that in 2010.
• Historically low interest rates have had a positive effect on results.
• An absence of political initiatives concerning the implementation of sustainable energy plans has had a negative influence on overall results in Xergi. However, the state of the company’s order books indicates a positive
  trend for 2012.
• Good earnings in forest management activities as a result of good market and price conditions.

* Profit/loss from ordinary activities is excl. non-recurrent expenses of DKK 42.4 million concerning Orbicon A/S (DKK 22 million from extraordinary amortisation of goodwill and DKK 8 million in restructuring costs) and DKK 12.4 million concerning the outcome of legal action for damages which went against DDH.

Expectations
DDH expects that the economic recession will continue to have an impact on the company’s markets in 2012. This is expected to affect levels of activity in areas such as the building and construction sector. Economic pressures in the public sector are expected to lead to stringent cost management – and in certain areas a continued increase in invitations to tender by local government authorities and
public institutions.

With its economic strength and solvency and the consequent room to manoeuvre available to DDH, the company’s focus and growth strategy will continue to be pursued in 2012. This includes an expansion of activities within Green Service within HedeDanmark’s business areas, which will ensure that the company will occupy a strong competitive position in relation to the continued increase in green service tasks being offered for tender in both the private sector and the public sector.

DDH will also continue to support projects that lie within the scope of its objects clause, in addition to which project development in Dalgas Innovation will be continued. A profit before tax of DKK 40 million is expected in 2012.