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ANNUAL REPORT

Ballerup

Lautrupparken 40-42

2750 Ballerup

Fladså

Centervej Syd 2

4733 Tappernøje

Odense

Niels Bohrs Allé 185

5220 Odense SØ

Århus

Spanien 19

8100 Århus C

Aalborg

Hadsundvej 184 og

Selma Lagerlöfs Vej 300

9100 Aalborg

Kursusadministration

Postboks 720

9100 Aalborg

Kursus- og konferencecenter

Hadsundvej 184

9100 Aalborg

Tlf.: 44 60 10 00

www.kmd.dk

www.kundenet.dk

www.netborger.dk

www.e-boks.dk

www.civitas.dk

KMD's printed annual report 2004

Editors: Corporate Communications & Marketing Department

and Finance Department of KMD

Design and layout: Lime Lab

Photography: Willi Hansen

Production and printing: Datagraf Auning A/S

Translation: Translatørbureauet Eunike Hansen

2004

have the capacity to handle the heaviest tasks. We develop and

maintain the electronic infrastructure of more than 100,000 PC

users that are linked to the network of KMD.

The technology is apparent to the Danes when ballot cards,

pension calculations and housing benefits and last, but not least,

pay slips are printed for the more than 1 million private and

public sector employees. A number of large private businesses

outsource the printing and mail insertion of their customer

correspondence to us.

KMD links local authorities to a shared electronic network, which

is monitored and serviced 24 hours a day.

In addition, KMD develops web solutions and runs one of

Denmark’s largest and most secure nethotels servicing the

websites of more than 1,000 large and small businesses and

institutions.

KMD provides training and service in the application of all its

specialist standard systems. In addition, KMD handles a number of

administrative tasks outsourced by the public sector, and it

provides consultancy support in the implementation of new

information technology systems.

KMD works on the premise of open standards and develops all

new systems on a standard platform.

KMD has branches at Ballerup, Fladså, Odense, Århus and

Aalborg.

KMD provides effective information technology solutions

for the public and private sectors

With its 2,400 employees and revenue of more than 2.3 billion,

KMD is the largest Danish-owned information technology

enterprise.

KMD delivers information technology and consultancy services to

both the public and private sectors. KMD attaches great

importance to its services making a real difference to its

customers. With this in mind KMD provides a benchmark concept

that enables customers to measure the effectiveness of various

services from one local authority to another.

It is KMD’s strategic objective to maintain its position as one of

the top three providers of information technology services in

Denmark.

KMD is the market leading competence centre in e-government.

The solutions provided by KMD enable public sector employees to

handle current legislation as efficiently as possible. In addition,

KMD aims to improve citizen services by means of

computerisation.

KMD has developed Netborger.dk and e-Boks.dk, which are two

of the most widely used self-service portals in the country.

As one of the country’s largest providers of information

technology management and the largest application service

provider KMD has PCs, servers and mainframes at its disposal that

Prof i le

3

KMD A/S

Ballerup

VAT reg. no. 26 91 17 45

Annual report for 2004

Third financial year

This is a translation into English of the original Danish version. In case of any inconsistencies, the Danish version shall prevail.

2

F i n a n c i a l r a t i o s a n d m a n a g e m e n t ' s r e v i e w

Profile 3

Management's statement on the annual report 6

Auditors' report on the financial statements 7

Financial ratios 8

Management's review 9

F i n a n c i a l s t a t e m e n t s

Accounting policies applied to the financial statements 18

Income statement 21

Balance sheet 22

Notes 24

Cash flow statement 27

K M D ’ s o r g a n i s a t i o n

Supervisory board 28

Executive board and management 29

KMD’s organisation 30

Table of contents

4 5

Financial ratios and management’s review

M a n a g e m e n t ' s s t a t e m e n t o n t h e a n n u a l r e p o r t

A u d i t o r s ' r e p o r t o n t h e f i n a n c i a l s t a t e m e n t s

F i n a n c i a l r a t i o s

M a n a g e m e n t ' s r e v i e w

KMD is the main sponsor for and shares the

values of the two women's handball teams,

Slagelse Dream Team and Aalborg DH,

shared values that are highlighted visually

in this annual report.

Oscar Tolstrup Simonsen (KMD).

The supervisory and executive boards have today considered and approved the annual report of KMD A/S for the year ended

31 December 2004.

The annual report has been prepared in compliance with the Danish Financial Statements Act. In our view, the accounting

policies applied are appropriate, the accounting estimates are adequate, and the annual report provides the information that

is relevant in the evaluation of the company's financial position. We therefore take the view that the annual report gives a

true and fair view of the company's assets, liabilities and equity, of the financial position and the results of the company's

operations and cash flows for the financial year 2004.

We take the view that the integral strategic statement gives a true and fair view of the company's strategy and, to the best of

our knowledge, it reflects the main management focus and the initiatives and objectives of KMD for 2005.

The annual report is hereby submitted to the general meeting for approval.

Ballerup, 10 March 2005

6

Management's statement on the annual report

To the shareholders of KMD A/S

We have audited the annual report of KMD A/S for the financial year ended 31 December 2004, which is

presented in compliance with the Danish Financial Statements Act .

The annual report is the responsibility of the company’s management. Our responsibility is to express an

opinion on the annual report based on our audit.

Basis of opinion

We conducted our audit in accordance with Danish auditing standards. Those standards require that we

plan and perform the audit to obtain reasonable assurance that the annual report is free of material

misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and

disclosures in the annual report. An audit also includes assessing the accounting policies used and

significant estimates made by the management, as well as evaluating the overall annual report

presentation. We believe that our audit provides a reasonable basis for our opinion.

Our audit has not resulted in any qualification.

Opinion

In our opinion, the annual report gives a true and fair view of the company's assets, liability and equity,

of the financial position as at 31 December 2004 and of the results of the company's operations and cash

flows for the financial year ended 31 December 2004 in accordance with the Danish Financial

Statements Act.

Copenhagen, 10 March 2005

Ernst & Young

Statsautoriseret Revisionsaktieselskab

Leif Shermer Larsen Henrik Kofoed

State Authorised Public Accountant State Authorised Public Accountant

Auditors ' report on the f inancial statements

7

Executive Board:

Lars Monrad-Gylling Ole N. Jensen Erik Juel Sørensen

President & CEO

/Johnny Rasmussen

Executive Vice President, Finance

Supervisory Board:

Anker Boye Johnny Søtrup Kurt Hockerup

Chairman Deputy Chairman

Aleksander Aagaard Tove Larsen Ove E. Dalsgaard

Carsten Bruse Andersen Ernst Nielsen Erik Lykke Hansen

Employee Member Employee Member Employee Member

Approved at the general meeting on 25 May 2005.

8

F inancial rat ios

KMD experienced yet another excellent year

KMD's overall objectives for 2004:

• To produce revenue growth in line with that of the market

and an operating margin of 4 per cent

• To be recognised as central government's prime provider of

solutions

• To create the highest level of customer satisfaction in

the market

• To be a stimulating workplace which is able to attract and

retain the best employees

• To offer products which are perceived by our customers as

attractive compared to those of our main competitors

• To be the customers' preferred choice in connection with

structural changes in the public sector

KMD produced a very good result for the second year running.

Revenue was DKK 2,376 million, up 5.9 per cent compared to

2003, and an operating margin of 8.4 per cent. Management

considers this a very satisfactory result for a year which saw the

transition from old to new local government structure.

Having in mind the imminent structural reform, KMD had

prepared a conservative budget with expected revenue growth of

4.5 percent and an expected operating margin of 4 per cent.

Revenue per employee has risen considerably in recent years. This

rise is partly due to increased effectiveness and a tight rein on

costs, which was implemented in 2001/2002. In 2004 we passed

the magic threshold of DKK 1 million per employee, reaching the

figure of DKK 1,008,404.

As anticipated, local authorities held back with major investments

during the year. On the other hand, the sale of a number of

supplementary products and services more than compensated for

the slow-down in major investments. For instance, a number of

our customers have required alignment of their IT solutions

portfolio prior to the mergers set to take place within local

government.

The profit has therefore been generated from the sale of many

components and services, but it is also the result of a continued

tight cost control generally and a goal-oriented continued

reduction in SG&A1

costs in the company.

Moreover, the result achieved in 2004 is the outcome of increased

business process and target control. KMD has now fully

implemented the enterprise management system SAP R/3, thereby

streamlining contract management and invoicing.

The net result is significantly improved on 2003, and this is

primarily due to the fact that there were no major foreign

exchange fluctuations on the loans denominated in foreign

currencies as was the case in both 2002 and 2003.

The cash position of KMD was reduced at the end of 2004

compared to year-end 2003. The decline is attributable to an

expansion of the mail centre at Ballerup, fresh investments in a

new office building in Aalborg and investments to expand the

operating capacity at KMD.

Major government contracts

To a large extent, KMD’s strategy has been to continue to

increase revenue in the government market. In 2004 we entered

into a number of contracts with central government. One of

these was the government’s new tax package, the so-called

"spring package”, which resulted in KMD being awarded a large


9

The company’s development over the past 5 years may be described as follows:

Amounts in DKK million 2004 2003 2002 2001 2000

Operating profit

Revenue 2,375.8 2,244.5 2,143.1 2,042.6 1,856.7

Costs 2,092.9 2,009.1 2,013.0 1,893.7 1,717.0

Profit before special

items, interest and

depreciation (EBITDA) 282.9 235.4 130.1 148.9 139.7

Depreciation 84.0 71.3 48.0 63.1 56.4

Profit from ordinary

operating activities (EBIT) 198.9 164.1 82.1 85.8 83.2

Special items 0.0 (31.0) (93.1) 2.5 13.5

Profit before net financials 198.9 133.1 (11.0) 88.3 96.8

Net financials (11.3) 23.4 (26.4) (7.0) 7.0

Tax (59.0) (56.5) 19.7 (24.9) (32.2)

Profit 128.5 100.0 (17.7) 56.4 71.6

Assets

Fixed assets 1,217.9 1,033.0 1,051.2 941.0 779.7

Current assets 685.9 713.2 646.6 601.6 480.8

Total 1,903.8 1,746.2 1,697.8 1,542.6 1,260.5

Liabilities

Equity 797.9 683.8 583.8 830.0 807.6

Provisions 11.0 6.5 7.5 7.6 37.4

Liabilities other

than provisions: long-term 518.1 532.6 565.2 214.1 4.4

Liabilities other

than provisions: short-term 576.8 523.3 541.4 490.8 411.1

Total 1,903.8 1,746.2 1,697.8 1,542.6 1,260.5

Financial ratios

Operating margin (EBIT) 8.4% 7.3% 3.8% 4.2% 4.5%

Return on assets 10.9% 9.5% 5.1% 6.1% 5.4%

Equity ratio 41.9% 39.2% 34.4% 53.8% 64.1%

Return on equity (ROE) 17.3% 15.8% (2.5%) 6.9% 6.9%

Turnover of

assets 1.3 1.3 1.3 1.5 1.2

Number of full time employees

year-end 2,395 2,343 2,444 2,416 2,353

Number of full time

employees on average 2,356 2,339 2,435 2,453 2,342

As of 1 January 2003 the corporate structure of KMD was changed so that KMD is now owned by

Kommune Holding A/S. All assets and liabilities have been transferred from the former KMD (now

Kommune Holding A/S) to KMD A/S as of 1 January 2003, apart from one building worth DKK 66.5

million and cash for DKK 152 million.

The financial ratios have been calculated in accordance with the Recommendations & Financial

Ratios 2005 issued by the Danish Society of Financial Analysts.

1 Sales, General & Administration

02000 2001

Revenue per full-time employee on average

2002 2003 2004

100

200

300

400

500

600

700

800

900

1000

1100

contracts with its customers. As regards local government, KMD

entered into major contracts with the municipalities of Lyngby

Taarbæk, Frederiksberg, Rødovre, Hvidovre and Ishøj.

KMD has entered into a contract on the development of a finance

system based on the SAP platform with the Municipality of Århus.

The finance system is to form the basis of KMD's future standard

finance system solution. A contract with the City of Copenhagen

concerning the product KMD Aktiv for the handling and payment

of social benefits is also of vital importance to the local authority

market.

By gathering all types of information, be it data in IT systems,

notes in a file or documents in a document folder, the KMD Sag

solution will become a platform for e-government . KMD Sag

remains one of KMD's major projects, and in 2004 a massive sales

effort produced satisfactory growth in revenue generated from

this solution.

Growth in technology & IT management

We have experienced a 30 per cent growth in IT management,

technology and installations assignments. One example of this is

the establishment of a development and management centre

shared by four local authorities in West and South Jutland. There

are several similarities between the above assignment and the

infrastructure mergers taking place in connection with the

structural reform.

We have entered into IT management contracts with e.g. the

municipalities of Hirtshals, Høng and Bjergsted. We have entered

into a contract to set up a major network solution for Roskilde

county authority, and we have agreed to set up IP

telecommuncations for Præstø, Ullerslev and Nyborg local

authorities.

As a result of extensive marketing measures, KMD has been

awarded more than 70 contracts to provide data back-up to its

customers in the local and central government and private sector.

contract with ToldSkat (Danish customs authorities) and a contract

for the so-called NemKonto with the Danish Agency for

Governmental Management. As from the late summer of 2005

NemKonto is to simplify payments from public funds to citizens

and enterprises, and it is therefore an important tool in realising

KMD's vision of increased public sector efficiency and

computerisation. Towards the end of the year KMD was also

awarded a contract via an EU tender to supply the Danish Court

Administration with a new intranet.

In addition, central government has outsourced quite a few

management tasks to KMD so that KMD is now in charge of

managing the finance systems (NaviStat) of a number of

government departments and agencies.

Break-through in the private sector

The private sector is crucial to KMD's strategy. In 2004 we enjoyed

a minor break-through in the private sector. At the turn of the

year the Union of Commercial and Clerical Employees in Denmark

moved the majority of its IT management to KMD. During the

year Forsikringsselskabernes Data Center (FDC) and several other

corporations outsourced large parts of their central IT

management tasks to KMD. Louis Poulsen Lighting is one of the

customers outsourcing its SAP management to KMD - a field in

which KMD is increasing its focus and resources considerably.

KMD’s profile as a Danish provider with Danish management is an

increasingly important factor in the outsourcing of services. At the

end of the year the mail centre entered into two important print

contracts with Politikens Hus and COOP Danmark.

With a view to further consolidating its position in the liberalised

energy market KMD acquired and integrated the energy unit of

CSC in 2004. The deal included the rights to the IT system PANDA,

which is a system for collecting and communicating energy data.

Consolidated local authority market

The local authority market remains KMD's core market. We have

managed to maintain our market share and produce revenue

growth in this market. KMD increasingly concludes comprehensive

10

Anette Kristensen, Kenneth Mikkelsen (KMD).


11

• All KMD buildings have sophisticated automated energy

control systems and programs installed. The most recently

constructed buildings have been equipped with interior

motion sensors, controlling heating, ventilation and light

Events after the balance sheet date

No events have occurred after the balance sheet date which

would materially affect the company's financial position as at 31

December 2004.

KMD expects growth in 2005

KMD's overall objectives for 2005:

• To produce revenue growth which as a minimum is in line

with that of the market

• For KMD to remain among the top three providers of

information technology services in Denmark

• To create the highest level of customer satisfaction in

the market

• To attract and retain the best employees

• To contribute to the development of Denmark as a

knowledge society

We therefore expect continued economic growth in the year

ahead, even though there is still some uncertainty as to how

many local authorities will make major decisions in 2005 as

regards IT in connection with the structural reform.

Several factors may affect KMD's markets and results, positively as

well as negatively:

• It might have a negative impact on the result if IT investments

are slowed down as a result of structural reform

• Depending on how many contracts are awarded to KMD, the

re-allocation of government tasks may affect the result

negatively or positively

• An increased sale of reform plans to local authorities in

connection with structural reform may improve the result

• Variations in the exchange rate of CHF and the short and

medium rates of interest might have an impact on the net

result in the year ahead

Major contract with SAP

KMD has decided to build several of its future systems on a SAP-

authority merger, and this seems to indicate great belief in KMD’s

competences in its core market. KMD anticipates an increased

dialogue with its customers during 2005 – and we also expect

some local authorities to be quick to make decisions concerning

the IT part.

KMD focuses on security

KMD manages large amounts of data for its customers, purely

administrative as well as confidential data. With a view to ensure

compliance with the provisions of the Danish Data Protection Act

as regards securing such data in order to prevent them from

getting damaged or being accidentally passed on to unauthorised

persons, KMD maintains an extensive security and monitoring

system. The system is subject to regular audit by an external

independent IT security audit, the Local Government Audit

Department. The said organisation has reviewed the general IT

controls at KMD in the following areas:

• Management of data centre and network

• Systems software – procurement, modifications and

maintenance

• Access to systems, data and facilities

• Applications – procurement, development and maintenance

The organisation’s report for 2004 to the supervisory board of

KMD concludes:

“In our opinion the general IT controls at KMD have been

maintained in the period from 1 January to 31 December 2004.”

Environmental policy

KMD’s environmental policy provides the general framework for

conduct in relation to the environment: “It is KMD’s policy to be

an environmentally friendly enterprise. Environmental concerns

are on a par with quality, efficiency and profitability. It is KMD’s

objective to continue to reduce the overall strain on the

environment."

KMD activities that may especially be a strain on the environment

are our print output and the day-to-day running of the buildings

of KMD. We therefore make a special effort in this area:

• KMD prints in excess of 300 million A4 pages and inserts more

than 80 million letters in envelopes a year. Printing is on

environmentally certified paper

12


13

The Effective Local Authority

The Effective Local Authority is the heading of a number of

benchmark clubs, in which KMD in consultation with an ever

growing number of local authorities provides documentation for

and compares the various day-to-day business processes in local

government. Experience is gained from local government across

the board, and new paths are found for effectiveness and

efficiency.

Membership of the clubs is anonymous, and the idea is for

members to be able to have access to their own figures only

when obtaining the reports. The said figures will be anonymously

bench-marked against an average in the clubs and the upper

fractile. There is open access to the member list, whereas

individual member data are kept confidential. The benchmarking

concept is also used in central government with great success.

Local authorities benefit from economies of scale in IT

An article published in the Danish newspaper “Jyllands-Posten”

noted “that the local authorities continue to reap great benefits

from the fact that the “IT wheel” has already been invented. Due

to economies of scale they spend far less money a year per IT

work station than do private businesses. The reason for this is that

the local authorities to a large extent use the same solutions - for

instance provided by KMD. At the same time user satisfaction is

greater in the local authorities than it is in private enterprises.”

The article was based on the findings of surveys that the

enterprise IT Optima regularly conducts of private and public

enterprises' IT systems.

Well-equipped for structural reform

It is still too early to reach any conclusions about KMD's position

as the preferred provider in relation to the structural reform - but

KMD is well prepared. For instance, we have spent over 10

millions to develop so-called reform plans, which are road maps

from A to Z, to guide local authorities through all IT aspects of

the structural reform.

During the past year KMD has communicated heavily with local

authorities about vital matters in connection with the structural

reform and how important it is to get the IT part in place

early on.

Customer satisfaction surveys have shown that as many as 89 per

cent of the customers agree or agree totally that KMD has the

experience and skills to implement the IT part of the local

Contracting out of IT tasks by local government almost came to a

standstill in 2004. The Municipality of Høje Taastrup has been

most consistent in contracting out as they have commissioned

KMD to implement and manage all their IT – with the exception

of local PC work stations.

Still highest level of customer satisfaction

KMD is still the IT provider with the highest level of customer

satisfaction in the local authority market. The one exception is

schools where KMD's solutions have failed to satisfy customers.

We are continually seeking to expand our knowledge of our

customers and their requirements and have now entered into 18

partnership agreements with local authorities. Partnerships are

often connected with the development of frontline solutions.

Partnership agreements are therefore typically concluded with

customers who desire to be at the cutting edge of development

and who have the knowledge, power and will to bring resources,

skills and knowhow to the trading relationship. Such agreements

often take the form of framework agreements for close and cross-

departmental co-operation to bring about changes.

In 2003 we set up a central helpdesk with the aim of making

KMD services more efficient, but it was not very well received by

our customers. Following a constructive dialogue with our

customers, the helpdesk was restructured, providing customers

with direct access to a set of dedicated expert centres.

Employee satisfaction was never greater

KMD conducts an employee satisfaction survey every year.

Employee satisfaction generally has never been higher than in

2004. As much as 97 per cent are either satisfied or very satisfied

about working for KMD. Every third employee is very satisfied,

and that is the highest figure ever. However, this does not change

the fact that there is still room for improvement, for instance in

connection with leadership skills. In addition, KMD adopted a

general policy for its working environment in 2004.

Open sources and interfaces

There has been much media coverage during the past year

concerning the so-called open sources programs, and criticism has

been levelled against the lack of open interfaces of KMD systems.

In the years ahead we will develop a number of open interfaces

that enable customers to choose between Microsoft Office and

competitors such as Open Office and Star Office.

1 Swiss Franc

skills. With this in mind KMD will focus more on the branding of

the enterprise KMD than on the branding of its products in the

years ahead.

In support of the branding of KMD we have entered into main

sponsorship contracts with two of the world's best women's

handball teams - in other words with Slagelse Dream Team and

Aalborg DH. Up to 2008 the two teams are to promote awareness

of KMD as an IT enterprise.

Facing increasingly toughened competition – in all markets - KMD

needs to position itself as a modern, goal-oriented IT workplace,

which puts initiative, vigour and effectiveness on the agenda.

Continued focus on skills development

If the growth strategy is to succeed, KMD must be able to attract

and retain the best employees. We will focus even more on this in

2005. As a case in point, we will improve leadership skills by

focusing on day-to-day management. We also intend to increase

our focus on recruitment and skills development.

Strategic alliances with universities

KMD has a long-standing tradition for good co-operation with

the university environments in Denmark, especially in Aalborg

and Odense. In 2004 this was expanded with a co-operation with

the Alexandra Institute in Århus and a strategic partnership with

the IT university in Ørestad.

As a knowledge-intensive large Danish IT enterprise KMD desires

to contribute to the consolidating of Denmark as a knowledge

society. By entering into strategic alliances with IT knowledge

environments in Denmark we ensure the exchange of knowledge

between KMD and the universities, and at the same time we set

up and develop a feeder for future employees. We will expand on

this focus in the years to come.

Reservations

The forecasts made in this management's review about 2005 and

the years ahead reflect management's current expectations of

certain future events and financial results. Predicting the future is

of necessity subject to a great deal of uncertainty, and the

realised results could therefore deviate from the forecasts.

Subsidiary and associated companies

e-Boks

e-Boks is a secure and free mail box in which the user can receive

electronic mail and store documents, such as the content of

business mail. Contracts have been concluded with almost all

Danish local authorities and many public and private enterprises,

including almost the entire bank sector.

14


The number of enterprises sending mail to e-Boks has now

exceeded 500. As a result you can now have advance tax

assessment forms, telephone bills, notices of assessment, utility

bills and other documents delivered to your e-Boks electronically.

The number of users has grown steadily since the launch of e-

Boks in 2002. In October 2003 e-Boks recorded user no. 200,000,

and in December 2004 the number was 475,000.

KMD owns one third of e-Boks A/S. The other co-owners are PBS

A/S and Post Danmark, both with one third each.

Civitas

Civitas A/S is a company wholly owned by KMD, a company

specialising in the sale and development of Navision products and

related services for central government. In consultation with the

Danish Agency for Governmental Management the company has

supplied more than 300 NaviStat-installations.

Shareholders

The total share capital of KMD A/S amounts to DKK 240 million

(240,000 shares) held by the parent company Kommune Holding

A/S, which is wholly owned by KL (the National Association of

Local Authorities).

Dividend

The supervisory board recommends to the company at the annual

general meeting that a dividend amounting to DKK 14.4 million is

distributed for the financial year 2004.

15

development of standardised solutions, which can be sold to local

authorities across the board. The establishment of an IT project

and consultancy business will enable us to better match the

future market with an anticipated increasing demand for

customer-specific solutions – both for the private and public

sectors.

As regards outsourcing of information technology, KMD intends

to provide a broad range of services and work to become the

number one provider of information technology management

services within UNIX and NT servers in the Danish market.

Customer satisfaction in all markets

KMD intends to maintain its position as the enterprise with the

highest level of customer satisfaction in the local authority

market.

During 2004 we made endeavours to increase central

government’s awareness of KMD, and our effort has proved

successful. Our focus for 2005 will be to lift the image of KMD

generally among key accounts in central government.

We have also succeeded in increasing awareness of KMD in the

private sector during the past year. Further to our strategy we

intend to focus on heightening the perception of KMD as a

provider of outsourced IT solutions among persons in charge of

information technology and finance in Danish enterprises.

Branding of KMD

In order to achieve long-term, broad marketing objectives, KMD

must promote increased awareness of its corporate identity and

platform. That means that we are changing from developing

everything ourselves to building our project-specific specialist

systems on top of SAP, a measure whereby we can develop a

given solution more quickly. With this in mind KMD has entered

into a major co-operation contract with SAP.

In the years ahead the formats we have developed for wage and

personnel, finance, and especially integral wage and finance

management will continue to play a role. In the years after that

the exploitation of the SAP-platform in the social benefits and

property fields will be drivers for growth.

Revised strategy

Once the structural reform is in place, KMD’s revenue generated

from local government may decline. In order to counter such a

scenario KMD has adopted a growth strategy which ensures that

KMD maintains its position among the top three service providers

in Denmark.

Our core business is still at the heart of the strategy. In our day-

to-day business activities we will continue to adapt KMD to the

changed local authority landscape with a view to maintaining our

position in the market. We will bring fresh blood to KMD and

meet the strategic challenges that we are facing. We will have

added focus on supporting information technology challenges

that arise in the wake of structural reform. Concurrently, we will

focus on alternative growth areas. For instance, we will establish

an IT project and consultancy business and increase our efforts in

connection with the outsourcing of information technology vis-à-

vis local and central government and corporations.

Until now, KMD's business model has been based on the

Lars Monrad-GyllingAnker Boye

Expand our position as regards the outsourcing of IT tasks in

the public and private sectorsEnsure KMD’s position as one of the top

three IT service providers in Denmark

Reinvent KMD with a view to consolidating

our position in the public sector

Adapt KMD to the changed local authority

landscape and maintain our current position

Setting overall

priorities for growth

alternativesSet up an IT project and consultancy business

The strategy of KMD consists of 3 main tracks

Maintain KMD’s position as one of Denmark's leading

information technology service providers to the public sector

Enhance productivity and efficiency on an ongoing basis

Provide a broad range of products and services

Implement renewal project in the local authority market

Ensure smooth changes in connection with structural reform

Handling strategic

challenges

Continue our day-to-

day business

16 17

Financial statementsA c c o u n t i n g p o l i c i e s a p p l i e d t o

t h e f i n a n c i a l s t a t e m e n t s

I n c o m e s t a t e m e n t

B a l a n c e s h e e t

N o t e s

C a s h f l o w s t a t e m e n t

Organisation of KMDS u p e r v i s o r y b o a r d

E x e c u t i v e b o a r d a n d m a n a g e m e n t

O r g a n i s a t i o n c h a r t

Stella Guldborg Nielsen (KMD).

on the basis of current assessments of the amortisation/

depreciation method, useful life and the residual value of the

assets.

Goodwill and other intangible fixed assets are amortised over the

expected useful life, measured by reference to an assessment,

among other factors, of the nature and market position, the

stability of the industry and the dependency on key staff, and

have been amortised as follows:

Period of depreciation

Acquired software rights 3 years

Other rights 5 years

Property, plant and equipment is depreciated on a straight-line

basis over the expected useful life of the individual asset. The

depreciation periods, measured by reference to the historic cost

are as follows:

Depreciation period Residual value

Land and buildings 50 years Land value

Major construction works 10 years 0

Plant and machinery 2 - 4 years 0

Fixtures and fittings, IT equipment

and vehicles 2 - 5 years 0

Acquisitions below DKK 40,000 are expensed in the year of

acquisition.

Gains and losses on the replacement of fixed assets are included

in the book depreciation. Losses and gains are calculated as the

difference between the selling price less disposal costs and the

carrying amount at the time of the sale.

Special items

Special items include substantial exceptional transactions that do

not occur in the normal course of business, including gains and

losses incurred in connection with disposals, exceptional

depreciation charges of an unusual nature and provisions and any

reversal of such provisions.

Net financials

Financial income and expenses are recognised in the income

statement in the amounts that relate to the reporting period. Net

financials include interest income and expenses, dividends,

financial expenses related to leases, realised and unrealised

capital and exchange gains and losses relating to securities and

foreign currency transactions, amortisation of losses and loan

costs and surcharges and allowances under the advance-payment-

of-tax scheme etc. Dividends on investments, except for

investments in subsidiaries and associated companies, are

recognised as income in the reporting period in which the

dividends are declared.

Interest and other loan costs incurred in the financing of

intangible assets and property, plant and equipment, which relate

The annual report of KMD has been presented in accordance with

the provisions of the Danish Financial Statements Act pertaining

to enterprises in reporting class C.

Consolidated financial statements

In pursuance of section 112 of the Danish Financial Statements

Act no consolidated financial statements have been prepared, as

these are prepared by the parent company, Kommune Holding

A/S.

Currency conversion

Foreign currency transactions are translated into Danish Kroner at

the rate of exchange prevailing on the date of the transaction.

Monetary assets and liabilities in foreign currencies are translated

into Danish Kroner at the rate of exchange prevailing on the

balance sheet date. Realised and unrealised exchange gains and

losses are recognised in the income statement as financial income

or expenses.

Derivative financial instruments

Derivative financial instruments are measured at fair value.

Positive and negative fair values are recognised as other

receivables and other payables respectively.

Fair value adjustments of derivative financial instruments are

recognised in the income statement.

Public grants

Public grants given to cover expenses are recognised when there

is reasonable assurance that the enterprise complies with all the

conditions attaching to them. Grants which must be repaid under

certain circumstances are recognised only to the extent that they

are not expected to be repaid. Grants related to assets acquired

are set off against the cost of the asset concerned.

Income statement

Revenue

Income from the supply of services is recognised as revenue once

the service has been delivered. Income from the sale of goods for

resale and finished goods is included in the revenue when the risk

has passed to the buyer and when delivery has taken place. Value

added tax, indirect taxes and discounts are excluded from the

revenue.

Other external expenses

Other external expenses include costs incidental to producing the

revenue for the year, including cost of sales in connection with

goods for resale, and other external expenses for distribution,

sale, advertising, administration, premises, bad debts, lease

payments under operating leases etc.

Amortisation, depreciation and writedowns

Depreciation, amortisation and writedowns in respect of

intangible assets and property, plant and equipment is provided

18

Accounting pol ic ies appl ied to f inancial statements

to the production period, are not included in the cost.

Income from investments in subsidiaries and associated

companies

These include the proportionate share of the profit in subsidiaries

and associated companies after having eliminated intragroup

profits and losses and after deduction of depreciation for any

group goodwill.

Tax

Tax on the profit for the year includes current tax on the year's

expected taxable income, the year's deferred tax adjustments less

the share of tax for the year that relates to changes in equity.

Current tax and deferred tax relating to changes in equity are

taken directly to equity.

The parent company and the wholly owned subsidiaries are taxed

on a consolidated basis. Danish income taxes are expensed in the

parent company.

The balance sheet

Intangible fixed assets

Goodwill includes the excess price relative to the fair value of the

identifiable net assets on corporate acquisitions. Goodwill is

measured at cost less accumulated amortisation and writedowns.

An impairment test is made for goodwill if there are indications

of decreases in value. The impairment test is made for the activity

or business area to which the goodwill relates. Goodwill is written

down to the higher of the value in use and the net selling price

for the activity or the business area to which the goodwill relates

(recoverable amount) if it is lower than the carrying amount.

Other intangible assets include acquired intellectual property

rights and any redevelopment projects that satisfy the criteria for

capitalisation.

Development projects that are clearly defined and identifiable

and in respect of which the technological feasibility, sufficient

resources and a potential future market or development potential

in an enterprise can be demonstrated and where the intention is

to produce, market or use the product or the process, are

recognised as intangible assets provided that it is sufficiently

certain that the future earnings are adequate to cover the

production, sales and administrative expenses and the total

development costs. Other development costs are expensed in the

income statement as incurred.

Development costs are measured at direct costs and costs that can

be allocated on a reasonable and consistent basis to the

individual development projects.

An impairment test is made for intangible fixed assets acquired

and completed development projects if there are indications of

decreases in value. Furthermore, an annual impairment test is

made in respect of development projects in progress. The

impairment test is made for each individual asset or group of

assets respectively. The assets are written down to the higher of

the value in use and the net selling price of the asset or group of

assets (recoverable amount) where this is lower than the carrying

amount.

Property, plant and equipment

Property, plant and equipment includes land and buildings, plant

and machinery as well as fixtures and fittings, IT equipment and

vehicles. Property, plant and equipment is measured at cost with

the addition of any revaluation less accumulated depreciation

and writedowns.

Assets held under finance leases are measured at the lower of

cost according to the lease and the net present value of the lease

payments, calculated by reference to the interest rate implicit in

the lease less accumulated depreciation and writedowns. Assets

held under finance leases are classified as own fixed assets.

An impairment test is made for property, plant and equipment if

there are indications of decreases in value. The impairment test is

made for each individual asset or group of assets respectively. The

assets are written down to the higher of the value in use and the

net selling price of the asset or group of assets (recoverable

amount) where this is lower than the carrying amount.

Investments

Investments in subsidiaries and associated companies are

measured using the equity method as the parent company's

proportionate share of the companies' equity with the addition

of goodwill on consolidation and intragroup profits and negative

goodwill. Enterprises whose equity is negative are measured at

zero, as the proportionate share corresponding to the negative

value is set off against receivables, if any, and amounts in excess

hereof are recognised under provisions.

Securities that the company plans to hold till maturity are

measured at amortised cost, calculated on the basis of the

effective rate of interest at the time of acquisition. Price

adjustments are recognised as net financials in the income

statement.

Securities and investments are measured at the price prevailing

on the balance sheet date in the case of listed securities, or at the

estimated fair value in the case of unlisted securities.

Inventories

Inventories are measured on the basis of a weighted average.

Goods the cost of which exceeds the expected selling price less

costs of completion and sale are written down to such lower, net

realisable value.

19

bearing debt is subsequently measured at amortised cost, using

the effective interest rate method. Other debt is subsequently

measured at amortised cost corresponding to the nominal unpaid

debt.

Deferred income (liability)

Deferred income recognised as a liability comprises payments

received relating to income in subsequent financial years.

Cash flow statement

The cash flow statement shows the company’s net cash flows, the

year's changes in cash and the company's cash position at the

beginning of the year and at year-end.

Cash flows from operating activities are presented indirectly and

are made up as the net profit or loss for the year, adjusted for

non-cash operating items, changes in working capital, paid

financial and extraordinary items and paid income taxes.

Cash flows from investing activities comprise payments related to

additions and disposals of fixed assets, securities related to

investing activities and dividends received from subsidiaries and

associated companies.

Cash flows from financing activities comprise dividends paid to

shareholders, capital increases and reductions and the raising of

loans and repayments of interest-bearing debt.

Cash includes near money securities in respect of which the risk of

changes in value is insignificant.

Contingent liabilities and guarantees

Total tenancy commitments and commitments under operating

leases, which are not recognised in the balance sheet, are

recognised under contingent liabilities. Counter guarantees for

bank guarantees to secure individual contracts relating to

customers, and relating to a bank guarantee for holiday

commitments in accordance with a collective agreement

concluded with the Union of Commercial and Clerical Employees

in Denmark are recognised under contingent liabilities.

Pension commitments in respect of existing and former

employees, who are not and did not use to be members of the

executive board, are covered by a pension insurer. Where the

contributions already made are not sufficient to cover the current

liabilities calculated by the pension insurers, an additional annual

contribution is payable to the pension insurers. Special

commitments to employees engaged on public servants' terms,

including redundancy and severance pay, are recognised under

contingent liabilities.

Segment information

In the view of the management, the business of KMD A/S is one

segment, which on the customer side may be subdivided into

public and private customers.

Receivables

Trade receivables etc. are measured at the lower of amortised

cost and net realisable value, calculated by reference to an

assessment of each individual receivable.

Prepayments (asset)

Prepayments recognised under assets include prepaid expenses

and deferred tax assets.

Income taxes

Current tax charges are recognised in the balance sheet as the

estimated tax charge in respect of the expected taxable income

for the year, adjusted for previous years' taxable income and tax

paid in advance.

Provisions for deferred tax is calculated at 30 per cent of all

temporary differences between the carrying amount and the tax

base, with the exception of temporary differences occurring at

the acquisition of the assets and liabilities that neither affect the

results of operations nor the taxable income, and the temporary

differences on non-amortisable goodwill.

Deferred tax concerning investments in subsidiaries and

associated companies is disclosed in the notes only, as the

investments are expected to be held for more than three years,

after which time there will be no tax liability.

Deferred tax assets are recognised at the value at which they are

expected to be utilised, either through elimination against tax on

future earnings or a set-off against deferred tax liabilities.

Deferred tax assets and liabilities are set off within the same legal

tax entity and jurisdiction.

Provisions

Provisions include expected expenses incidental to the obligation

to supply, restructuring etc. Provisions are recognised when, on

the balance sheet date, the company has a legal or constructive

obligation and it is probable that an outflow of resources

embodying economic benefits will be required to settle the

obligation.

Provisions expected to be settled more than one year after the

balance sheet date are measured at the net present value of the

expected payments. Other provisions are measured at net

realisable value.

Leases

Lease payments are measured at the net present value of the

remaining lease payments including any guaranteed residual

value, calculated by reference to the interest rate implicit in the

lease.

Financial liabilities

Financial liabilities are recognised on the raising of the loan at the

proceeds received less the transaction costs incurred. Interest-

20

Accounting pol ic ies appl ied to f inancial statements Income Statement for the per iod 1 January – 31 December 2004

21

Note: Amounts in DKK million 2004 2003

1 Total revenue 2,375.8 2,244.5

2 Other external expenses 879.8 830.4

3 Staff costs 1,213.1 1,178.7

Profit before interest and depreciation (EBITDA) 282.9 235.4

4 Depreciation 84.0 71.3

Profit from ordinary operating activities (EBIT) 198.9 164.1

5 Special items 0.0 31.0

Profit before net financials 198.9 133.1

Investments in group and associated companies (3.7) (8.7)

6 Financial income 20.2 60.2

7 Financial expenses 27.8 28.1

Profit before tax (EBT) 187.5 156.5

8 Tax 59.0 56.5

Net profit 128.5 100.0

Recommended distribution of the net profit: 128.5 100.0

Dividend 14.4 14.4

Retained earnings for the year 114.1 85.6

22

Balance Sheet as at 31 December 2004 Balance Sheet as at 31 December 2004

23


Assets:

Acquired rights 12.4 0.0

Goodwill 1.6 0.0

Prepayment for intangible assets 7.4 0.0

9 Intangible fixed assets 21.4 0.0

Land and buildings 1,021.1 895.5

Plant and machinery 112.9 74.1

Fixtures and fittings, IT equipment and vehicles 32.6 40.9

10 Property, plant and equipment 1,166.6 1,010.5

11 Investments in group companies 18.0 16.3

11 Investments in associated companies 11.6 6.0

Other receivables 0.2 0.2

Investments 29.8 22.5

Total fixed assets 1,217.9 1,033.0

Inventories 31.2 34.4

12 Trade receivables 466.6 432.8

Other receivables 21.6 23.3

8 Deferred tax asset 38.5 58.3

Income taxes 0.0 0.0

13 Prepayments 123.2 94.6

Total receivables 649.9 609.0

Cash 4.8 69.8

Total current assets 685.9 713.2

Total assets 1,903.8 1,746.2


Liabilities and equity:

Share capital 240.0 240.0

Share premium account 0.0 343.8

Retained earnings 543.5 85.6

Proposed dividend for the financial year 14.4 14.4

14 Total equity 797.9 683.8

15 Other provisions 11.0 6.5

Total provisions 11.0 6.5

16 Mortgage debt 355.9 356.1

16 Bank loans 152.3 150.9

16 Other payables 6.2 5.9

16 Suppliers 3.7 19.7

Liabilities other than provisions: long-term 518.1 532.6

Prepayments received from customers 3.8 2.9

Suppliers 194.6 153.7

Bank loans 102.2 0.0

Other payables 258.0 320.1

Income taxes due 16.9 40.2

Prepayments 1.3 6.4

Liabilities other than provisions: short-term 576.8 523.3

Total liabilities other than provisions 1,094.9 1,055.9

Total liabilities and equity 1,903.8 1,746.2

17 Contingent assets and liabilities

18 Financial risk management

24

Notes

25

Note 5

Special items:

Amounts in DKK million 2004 2003

Provisions for restructuring costs 31.0

Total 0.0 31.0

Note 6

Financial income:


Interest income 20.2 19.3

Price adjustment of long-term debt 10.0

Fair value adjustment of derivative financial

instruments 30.9

Total 20.2 60.2

Note 1

Revenue:

Broken down by customers:


Public sector customers 2,178.4 2,028.0

Private sector customers 197.5 216.5

Total 2,375.8 2,244.5

Note 2

Other external expenses:


Apart from the supervisory and executive boards

KMD's definition of related parties includes

The National Association of Local Authorities

and enterprises owned and run by the same.

Related party transactions:

The National Association of Local Authorities. 17.0 16.8

Local Government Audit Department 4.2 6.0

Related party transactions have been conducted

on market conditions.

No other related party transactions have been

conducted during the year, including transactions

with shareholders, the supervisory and

executive boards.

Fees to the company's auditors: 2004 2003

Ernst & Young:

Statutory audit 0.5 0.5

Other assistance 0.7 1.4

Total 1.2 1.9

Note 3

Staff costs:


Wages and salaries 1,099.8 1,071.0

Pension contributions 112.2 106.5

Other social security costs 1.1 1.2

Total 1,213.1 1,178.7

Of this amount remuneration is paid to:

Executive board 6.2 5.9

Supervisory board 0.6 0.5

Total 6.8 6.4

Average number of employees 2,356 2,339

Note 4

Depreciation:


Depreciation, cf. note 9 6.0 0.0

Depreciation, cf. note 10 82.9 71.4

Net proceeds from sale (4.9) (0.1)

Total 84.0 71.3

Note 7

Financial expenses:


Interest paid 25.7 28.1

Price adjustment of long-term debt 1.2

Fair value adjustment of derivative

fnancial instruments 0.9

Total 27.8 28.1

Note 8

Tax on the profit for the year:


Current tax 40.9 41.7

Adjustment relating to deferred tax (tax asset) 18.9 (1.4)

Total 59.8 40.3

Total tax for the year

Adjustment for previous years’

timing differences (0.8) 16.2

Tax on profit for the year 59.8 40.3

Total 59.0 56.5

Note 9

Intangible assets:

Acquired Prepayment for

Amounts in DKK million rights Goodwill intangible assets

Cost

1 January 2004 0.0 0.0 0.0

Additions during the year 18.0 2.0 7.4

Disposals during the year

Cost

31 December 2004 18.0 2.0 7.4

Amounts written off

as at 01.01.04 0.0 0.0 0.0

Depreciation for the year 5.6 0.4

Depreciation charge for disposals

for the year

Amounts written off

as at 31.12.04 5.6 0.4 0.0

Carrying amount

31 December 2004 12.4 1.6 7.4

Depreciated over 3-5 years 5 years

Note 10 Fixtures,

Property, plant & euipment: fittings, IT

Land & Plant & equipment

Amounts in DKK million buildings machinery & vehicles

Cost

1 January 2004 981.1 238.9 84.3

Additions and upgrading

of existing equipment 144.3 104.8 6.6

Disposals during the year (58.5) (2.6)

Cost

31 December 2004 1,125.4 285.2 88.3

Amounts written off

as at 01.01.04 85.6 164.8 43.5

Depreciation for the year 18.7 50.2 14.0

Depreciation charge for disposals

for the year (42.7) (1.8)

Depreciation

31 December 2004 104.3 172.3 55.7

Carrying amount

31 December 2004 1,021.1 112.9 32.6

Depreciated over 10-50 years 2-4 years 2-5 years

Total property value for valued

properties as at 01.10.03 705.7

Land value hereof 136.7

In security of mortgage debt amounting to DKK 355.9 million

mortgages have been created in properties, the carrying amount of

which is DKK 663.4 million as at 31 December 2004.

Note 12

Receivables: long-term:


Receivables due after more than

one year amount to 14.0 14.8

Note 13

Prepayments:


Prepaid wages and salaries 37.8 37.4

Other prepayments 85.5 57.2

Total 123.2 94.6

Note 11

Investments in group and associated companies:

Group Associated

Amounts in DKK million companies companies

Movements in capital:

Balance as at 1 January 2004 16.3 6.0

Capital injection e-Boks 11.0

Total 16.3 17.0

Income statement movements:

Share of profit 1.7 (5.4)

Total 1.7 (5.4)

Carrying amount as at 31 December 2004 18.0 11.6

Broken down as follows:

Amounts in DKK million KMD

International A/S Civitas A/S e-Boks A/S

Ownership share 100% 100% 33%

Profit for the year 0.3 1.5 (16.0)

Equity as at 31 December 2004 7.2 10.8 34.9

Domicile Ballerup Ballerup Ballerup

26

Notes Cash f low statement 2000-2004

27

Note 14

Changes in equity may be Share

broken down as follows: Share premium Retained Proposed Equity

Amounts in DKK million capital account earnings Dividend in total

Balance as at 31.12.03 240.0 343.8 85.6 14.4 683.8

Dividend distributed in 2003 (14.4) (14.4)

Transfer (343.8) 343.8 0.0

Profit for the year 128.5 128.5

Proposed dividend to shareholders (14,4) 14.4 0.0

Equity as at 31.12.04 240.0 0.0 543.5 14.4 797.9

The share capital has been divided into 240,000 shares of DKK 1,000 each.

Kommune Holding A/S, Copenhagen holds 100% of the shares.

Note 16

Mortgages and other debt:


Of the long-term debt, the following amounts

fall due for payment more than 5 years after

the balance sheet date:

Total 0.0 0.0

Repayments falling due within 1 year are listed under short-term

debt.

Note 15

Provisions:


Balance as at 1 January 6.5 0.0

Addition by transfer of assets 7.5

Spent during the year (1.0)

Provisions made for the year 4.5

Balance as at 31 December 11.0 6.5

Provisions relate to product liability insurance and rent in vacated

lease.

Note 17

Contingent assets and liabilities:

Amounts in DKK million 2004

In 2004 KMD entered into a framework agreement on

the construction of a new building to be ready for possession

in 2006 and the sale of two properties in Aalborg to be ready

for possession in 2006.

The sale of the properties will presumably take place

at values that exceed the carrying amounts

as at 31 December 2004.

Interminable contract, leases, guarantees etc.:

Commitment as at 31 December 2004 67.6

Guarantee for bank loan to the subsidiary Civitas A/S 9.7

Guarantees for customers, buildings,

policy ceiling DKK 100,000,000.

Utilisation as at 31 December 2004 52.9

The company has special obligations towards employees

engaged on public servants' terms.

The obligations relate to redundancy pay, severance pay etc.

and as at 31 December 2004 the liability may be calculated at 28.1

Joint taxation:

KMD is jointly taxed with both the parent company and the wholly

owned subsidiaries and is liable for the payment of the tax of these

companies.Note 18

Financial risk management:

With a view to minimising total financing costs, the company

has entered into interest and foreign currency swaps and interest options.

Recognised

Net position in income

Amounts in DKK million as at 31 December 2004: 31.12.04 31.12.03 statement Maturity

Foreign currency swap DKK/CHF 7.5 7.0 0.5 2006

Foreign currency swap EUR/CHF 13.4 11.9 1.5 2007

Interest swap CHF (0.2) 2.7 (2.9) 2007

Total 20.7 21.6 (0.9)

Amounts in DKK million 2004 2003 2002 2001 2000

Cash flow from operations

Profit from ordinary operating activities (EBIT) 198.8 164.1 82.1 85.8 83.2

Depreciation excluding losses/gains on sale 89.0 71.4 67.2 66.0 56.4

Provisions etc. 4.5 (1.0) (0.1) (38.8) (57.1)

Operating profit adjusted for

items not involving the movement of funds 292.3 234.5 149.2 113.0 82.5

Tax paid 62.6 0.0 13.3 31.1 34.8

Net financials (7.6) 32.1 (23.7) (1.6) 1.6

Unrealised gains or losses etc., net 2.1 (40.8) 10.7 0.1 12.1

Special items 0.0 (31.0) (121.1) (2.3)

Changes in prepaid costs (28.6) (24.0) (4.1) (33.2) 0.6

Changes in receivables (33.0) (53.7) 92.4 (120.9) 10.1

Changes in payables 24.8 (5.4) 14.8 28.1 (3.0)

Changes in other operating debt (66.0) 33.8 (38.2) 103.9 (53.1)

Changes in inventories 3.3 0.1 (21.7) (0.8) (0.4)

Total cash generated from operations 124.7 145.6 45.0 55.2 15.6

Investment payments

Investments in intangible assets (27.4) 0.0 0.0 0.0 0.0

Investments in property, plant and equipment (239.2) (48.8) (240.6) (223.7) (9.4)

Shares acquired (13.8) (0.5) (10.0)

Sale of shareholding 20.0

Cash injection associated companies (11.0)

Other investment activities 0.0 0.6 2.2 (0.1) 0.5

Total investment payments (277.6) (62.0) (218.9) (233.8) (8.9)

Financing payments

Bank loans raised 102.2 (100.0) 212.9 29.1 19.4

Mortgage debt raised 0.1 206.3 152.3

Dividend distributed (14.4) (14.4) (14.4) (16.0)

Reduction in capital (34.1) (503.6)

Proceeds from the sale of subsidiary 6.0 9.3

Non-acquired cash as at 1 January 2003 (152.0)

Total financing payments 87.9 (100.0) 252.8 138.9 (491.0)

Total cash flow for the year (65.0) (16.4) 78.9 (39.7) (484.2)

Opening cash balance 69.8 86.2 7.3 47.0 531.2

Total cash flow for the year (65.0) (16.4) 78.9 (39.7) (484.2)

Closing cash balance 4.8 69.8 86.2 7.3 47.0

28

Supervisory board 2002-2006 as at 31 December 2004 Executive board and management at 31 December 2004

29

Elected by the General Meeting

Members

Chairman

Anker Boye (Social Democratic Party)

Municipality of Odense

Deputy Chairman

Johnny Søtrup (Liberal Party)

Municipality of Esbjerg

Tove Larsen (Social Democratic Party)

Municipality of Rødekro

Ove E. Dalsgaard (Social Democratic Party)

Municipality of Ballerup

Kurt Hockerup (Conservative Party)

Municipality of Vallensbæk

Aleksander Aagaard (Liberal Party)

Municipality of Skanderborg

Employee Members

Members

Carsten Bruse Andersen, KMD

Ernst Nielsen, KMD

Erik Lykke Hansen, KMD

Alternates

Finn Brunse (Social Democratic

Party)

Municipality of Tommerup

Erling Bonnesen (Liberal Party)

Municipality of Broby

Flemming Knudsen (Social

Democratic Party)

Municipality of Århus

Laust Grove Vejlstrup (Conservative

Party)

Municipality of Sydthy

Hans Peter Geil (Liberal Party)

Municipality of Gram

Alternates

Bjerne Nielsen, KMD

John Aabille, KMD

Peter Galle, KMD

Executive board of KMD

President & CEO: Lars Monrad-Gylling

Executive Vice President, Administrative IT and From Law to IT Solutions: Ole Jensen

Executive Vice President, Technology & IT Management: Erik Juel Sørensen

Other Executives

Executive Vice President, Human Resources: Bjarne Flyvbjerg

Executive Vice President, Finances, Internal Service, IT and Infrastructure: Johnny Rasmussen

Executive Vice President, Customer Services: Kim Koch

Executive Vice President, Sales: Hans-Henrik von Platen-Hallermund

Executive Vice President, Corporate Communications & Marketing: Anders Rosbo

Senior Vice President, Law to IT Solutions: Jon Johnsen

(Joins on 1 April 2005 as Executive Vice President of IT project and consultancy business and

is replaced by Bjarne Grøn as Senior Vice President for the department for Law to IT

solutions.

Senior Vice President, Executive Staff: Sten T. Davidsen

30

Organisat ion chart of KMD

President & CEO

Lars Monrad-Gylling

Law to IT Solutions

Ole Jensen

Lovbaseret IT

LIT/KMB

Lennart Qvist- Sørensen

Administrative IT

Ole Jensen

Customer Services

Kim Koch

Technology & IT Management

Erik Juel Sørensen

As at 1 April 2005

IT Project &

Consultancy Business

Jon Johnsen

Fields of Business Cross-Departmental Units Support Functions

IT and Infrastructure

Internal Service

Security

Development Support

IT Architecture Support

Ole Jensen

Sales

Hans-Henrik von

Platen-Hallermund

Executive Staff

Sten T. Davidsen

Finances

Johnny Rasmussen

Human Resources

Bjarne Flyvbjerg

Corporate Communications

& Marketing

Anders Rosbo

2004 - perfect informationfedownload.perfectinfo.com/docroot/pdf/28b68eebd3... · correspondence to...

Documents