Terma Annual Report for the 2017/18 fiscal year.
Lystrup, 25 May 2018 – With an order backlog at year-end of 2,374 MDKK, Terma has a comfortable base for business developments in the coming years. Increased activities in the international defense, aerospace, and security markets ensured an order intake in 2017/18 of 1,728 MDKK.
“In all Business Areas, we have again this year seen a positive development, which has ensured a good result for Terma. We continue the high investment level in development of key technologies and new products. Combined with our targeted market strategy, this has secured a solid foundation for the coming years’ global sale of high-tech solutions in the aerospace and defense industry,” says Terma’s CEO Jens Maaløe, and continues:
"The revenue to international customers constitutes 94% of our total revenue. In the past year, we have witnessed an increase in sales to customers in Asia as well as the Middle East and North Africa, while maintaining a solid foothold in North America and Europe.”
Terma's Executive Management (from left): Per Thiesen, Jens Maaløe, and Steen M. Lynenskjold
In the fall 2017, Terma opened a new innovation center in Atlanta, Georgia, USA. Terma has a close collaboration with the U.S. Air Force on self-protection equipment, based at the U.S. Air Force base in Warner Robins south of Atlanta. With the establishment of Terma Innovation Center in Atlanta, this collaboration is further strengthened in concert with the establishment of a collaboration with Georgia Institute of Technology. This is implemented to meet our recruiting requirements for highly skilled employees with a technical background which is crucial for our continued growth and development,” says Jens Maaløe.
During the fiscal year, Terma has had a net increase of 120 new employees, and at year-end, total staff was 1,458 Full-Time Employees.
Revenue for the fiscal year was 1,785 MDKK compared to 1,719 MDKK in 2016/17. Earnings before tax were 124 MDKK before special items in 2017/18, compared to 120 MDKK in 2016/17. Special items include extraordinary costs related to a reorganization in the summer 2017, as part of a major efficiency project, and downwards adjustment of the order value of a customer program.
With significant orders from the Belgian and the Dutch air forces and a framework agreement with U.S. Air National Guard/U.S. Air Force Reserve for 3D-Audio/Active Noise Reduction, Terma experienced an international breakthrough at the turn of the year 2017/18 for this special audio technology which warns pilots of incoming threats and reduces the noise considerably in cockpits. Additional orders are in the pipeline in the coming years.
With ASIM (Atmosphere-Space Interactions Monitor), Terma and DTU Space positioned Denmark in the international space and climate research arena. Terma holds the overall management and technical responsibility for the observatory which is now installed on the International Space Station, from where it will monitor giant lightning which is meant to affect the climate on Earth.
Jens Maaløe has agreed with Terma’s Board of Directors that he will retire after 16 years as President & CEO, after completing the fiscal year 2018/19 and securing onboarding of his successor. Jens Maaløe will turn 64 in January 2019. The Board has initiated a process to find his replacement.
In connection with the Annual General Meeting on Friday, 25 May 2018, the Board welcomed a new member, Karen-Marie Katholm. She holds a position as Integrated Operations Leader and member of the management team in DuPont Nutrition & Health. Karen-Marie Katholm replaces Anders Eldrup, who has not accepted renomination after eight years as member of Terma’s Board of Directors.
The external members of Terma’s Board of Directors are: Flemming H. Tomdrup (Chairman), Jørgen Huno Rasmussen (Deputy Chairman), Christina Grumstrup Sørensen, Carsten Dilling, and Karen-Marie Katholm. The members elected by the Terma employees are: Bo Laursen, Martin Anders Hedegaard, and Benny Daugaard Laursen.
The Annual Report covers the period 1 Marts 2017 – 28 February 2018.
See the Annual Report and the CSR report here.
• Order backlog, year-end: 2.37 DKK billion
• Revenue: 1.8 DKK billion
• 94% of the revenue is generated by international customers
• Earnings: 124 MDKK before tax and special items
• Net increase of 120 new employees
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