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Annual Report 2013/14

2014-05-28:

With a record order book at year-end of MDKK 2,507, Terma is well prepared for the coming years.

Lystrup, Denmark – With a record order book at year-end of MDKK 2,507, Terma is well prepared for the coming years, despite uncertainty and budget cuts in the European and U.S. Defense and Aerospace markets.

The order intake for the 2013/14 fiscal year was MDKK 1,455 MDKK, ensuring a solid base for the activities in all three Business Areas; Terma Defense & Security, Terma Space, and Terma Aerostructures.

”The continued defense budget cuts in the U.S. and Europe result in increased competition and longer-term decision making among our traditional customers. This has challenged us for a number of years and increases the demand to secure contracts in new markets including, South East Asia, the Middle East, and South America”, says Terma’s President & CEO Jens Maaløe and continues:

“Against this background, we have in the past year reorganized and strengthened our sales organization relative to our international companies and offices. In this connection, we experience a steady global demand for our solutions which results in a significant activity level responding to global tenders."

The revenue for the 2013/14 fiscal year was MDKK 1,137 compared to MDKK 1,140 in 2012/13. The profit before tax was MDKK 53.9 compared to MDKK 43 in 2012/13. Recent years’ efforts to streamline processes and work flows in order to increase efficiency and save costs have contributed to a satisfactory overall result for 2013/14.

”Within all Business Areas and programs, Terma utilizes national as well as internationally based suppliers and partners. Our global supplier list for production encompasses a total of 700 suppliers, mainly located in Denmark, the EU, and in the U.S. For research and development, the supplier list mostly consists of Danish companies and knowledge institutions”, says Terma’s President & CEO Jens Maaløe.

In 2013/14, Terma entered into long-term contracts for the supply of composite components for the U.S. F-35 Joint Strike Fighter program. The contracts were entered into with BAE Systems and General Dynamics. Last year, Terma entered into long-term contracts with Lockheed Martin Corporation and Northrop Grumman Corporation for the manufacture of composite components. All four agreements cover the Low Rate Initial Production phases and the period until 2019/20. The overall value amounts to DKK 1.4 billion, depending on the actual number of aircraft planned to be produced.

These agreements ensure a good basis for the further development of the Aerostructures Business Area and thereby employment in the Grenaa facility and in electronics production in Lystrup.

87% of Terma’s revenue was generated internationally, and 13% was generated in Denmark. The defense market constitutes 66% of the revenue, whereas the non-defense markets constitute 34%.

Avionics and aerostructures constitute 49% of the revenue, radar systems constitute 19%, and space systems 15%. The remaining 17% of the revenue consists of naval and command and control systems for defense and non-defense applications.

At the end of the fiscal year, total staff was 1,101 employees.

The Annual Report covers the period 1 March 2013 – 28 February 2014.

At the annual general meeting in Terma A/S on Friday, 23 May 2014, Chairman of the Board Svend-Aage Nielsen retired due to age after 15 years as Chairman.

New Chairman is Flemming H. Tomdrup, former Group Chief Executive in Solar A/S. New Deputy Chairman is Jørgen Huno Rasmussen, former Group Chief Executive in FLSmidth & Co. A/S.

New member of the Board is Christina Grumstrup Sørensen, Senior Partner in Copenhagen Infrastructure Partners (CIP).
 
About Terma
The high-tech Group Terma develops products and systems for defense, non-defense and security applications, including command and control systems, radar systems, self-protection systems for aircraft, space technology, and aerostructures for the aircraft industry.

Terma A/S is headquartered at Lystrup, Denmark and maintains Danish departments at Herlev and Grenaa. Internationally, Terma has subsidiaries and operations in The Netherlands, Germany, the U.S., and Singapore and a representational office in India.

The Annual Report 2013/14 is available here.

Additional information about Terma is available at www.terma.com.

For further information, please contact President & CEO Jens Maaløe at T: +45 8743 6000 or Director, Marketing Anne Mette Mosekjær Søndergaard, T: +45 4085 0890.

Contact

Nils Greir
Vice President, Market Development & Strategy
T: +1 (703) 412-9410
E: nils.greir@termana.com

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