Annual Report 2015Group | Falck Annual Report 2015 3 Falck takes its responsibility seriously Helping other people is a huge responsibility: it requires willingness to collaborate,

Annual Report 2015

Parent company financial statements

Management’s statement

Consolidated financial statements

Content Management review

Management reviewKey figures and financial ratios 2Falck takes its responsibility seriously 4Major events during the year 6Financial review 8Business areas 10 Emergency 12 Assistance 18 Healthcare 22 Safety Services 26Corporate social responsibility 30Shareholders of Falck Holding A/S 35Corporate governance 36Risk factors 38

Consolidated financial statements Income statement 43 Statement of comprehensive income 44 Cash flow statement 45 Balance sheet 46 Equity statement 48 Notes 49

Parent company financial statements Income statement 90 Statement of comprehensive income 90 Cash flow statement 91 Balance sheet 92 Equity statement 94 Notes 95

Management’s statement 104Independent auditor’s report 105Board of Directors, Executive Management Board and auditors 106Legal entities in the Falck Group 109Definitions of ratios 112

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Management review

ContentBER: INDHOLD

Panama139 employees

El Salvador96 employees

Mexico17 employees

USA4,815 employees

Canada67 employees

Brazil321 employees

Chile92 employees

Uruguay1,107 employees

Trinidad46 employees

Venezuela373 employees

Australia240 employees

Papua New Guinea38 employees

Romania323 employees

Vietnam8 employees

Malaysia82 employees

Singapore14 employees

Poland3,376 employees

Ecuador115 employees

Colombia2,735 employees

Portugal68 employees

France311 employees

Switzerland67 employees

Italy18 employees

Czech Republic101 employees

Slovakia2,093 employees

Emergency Assistance Healthcare Safety Services

Lithuania26 employees

Nigeria173 employees

Estonia26 employees

Finland513 employees

China5 employees

India130 employees

Sweden3,117 employees

United Kingdom1,254 employees

Germany2,195 employees

Belgium51 employees

Netherlands329 employees

Denmark12,046 employees

Norway431 employees

Turkey23 employees

Kazakhstan291 employees

Azerbaijan13 employees

Qatar8 employees

United ArabEmirates27 employees

Thailand15 employees

Spain1,069 employees

Global presence

We are present in 45

countries across the globe

45We have more than

38,000 employees

38,000

Content Consolidated financial statements



Management review

Falck’s activities take their starting point in assisting people in emergency situations and remedying damage to property. These activities primarily include:

• Ambulance services• Firefighting• Medical and healthcare clinics• Roadside assistance• Home assistance services• Assistance in the event of illness or accidents while travelling

Based on its commitment to assisting people in emergency situations, Falck has developed services aimed at preventing and reducing the consequences of emergency situations: services which include safety training, contingency planning, medical examinations and prevention of work-related injuries. Falckalsoprovidesservicesthatmitigatetheeffectofac-cidents or illness, including patient transport, psychological treatment and treatment of the musculoskeletal system.

Falck has strong competencies in preventing and handling cri-sis situations through local organisations in a global network based on its strong values of assisting people in emergency situations.

FOUNDED IN DENMARK IN 1906, FALCK IS AN INTERNATIONAL ORGANISATION WHOSE OBJECTIVES ARE TO PREVENT ACCIDENTS, DISEASE AND EMERGENCY SITUATIONS, TO RESCUE AND ASSIST PEOPLE IN EMERGENCIES QUICKLY AND COMPETENTLY AND TO REHABILITATE PEOPLE AFTER ILLNESS AND INJURY.

Falckisaprivatecompanyandthereforefocusedonprofit-ability and earnings in the Group operations in order to secure shareholder return. The Group faced a number of challenges in2015;asaresult,itsprofitabilitywasnotsatisfactory.In2016, Falck will remain committed to enhancing value crea-tion.

Falck has gone through an extensive internationalisation pro-cessoverthepastdecade,particularyinthefieldsofambu-lanceservices,firefighting,clinicsandsafetytraining.Theseactivities are primarily operated in the Nordic countries, the United States and Latin America, but there is also a strong focus on expanding these services in Europe and on establish-ing a presence in new markets where Falck can set up its own operations or networks.

Falck’s development is currently being strengthened by a global focus on and a need for healthcare services, safety and security as well as generally increased willingness by public authorities to partner with private service providers to both save costs and ensure a better quality of the services provided to people.

Falck’s activities are organised in four business areas: Emergency, Assistance, Healthcare and Safety Services.

Falck is people helping people

We are always there

Management review | Falck Annual Report 2015 1Management review




Content

Management review | Falck Annual Report 2015 1

BER: MANAGEMENT REVIEW

Keyfiguresandfinancialratios

TheGroupfocusesonanumberofkeyfiguresandratioswhicharenotallderiveddirectlyfromtheincomestatement,cashflowstatementandbalancesheet.Thesekeyfiguresandratiosareshownbelow.

KEY FIGURES AND FINANCIAL RATIOS 2015 2014 2013 2012 2011*

Revenue DKK million 15,227 13,952 12,534 11,504 5,247 Organic growth % 2.2 6.8 7.7 7.6 3.6 EBITA DKKmillion 971 1,139 1,112 1,083 522EBITAmargin % 6.4 8.2 8.9 9.4 9,6EBITDA DKKmillion 1,499 1,578 1,502 1,432 708Cash conversion rate % 51.5 80.9 88.4 89.2 118.2 Operatingprofitexcludingimpairment DKKmillion 455 606 562 532 229Result for the year DKK million -586 218 205 119 15 Normalisedprofitaftertax DKKmillion 548 618 568 559 259 Total assets DKK million 18,339 18,693 17,681 17,179 16,734 Equity ratio % 32.4 35.3 30.9 32.5 33.9 Return on equity % -10.4 3.4 3.6 1.9 0.3 Return on equity, normalised % 8.8 10.3 10.2 10.1 4.6 Net-interestbearingdebttoEBITDA Factor 4.05 3.54 4.06 3.94 4.14 Number of employees at year-end Number 38,405 34,230 32,009 28,005 25,262

*Thecomparativefiguresfor2011includetheperiod1Aprilto31December.TheratiosareproformafiguresbasedonfiguresfromtheFalckA/SGroup.

Revenue, pro forma Organic growth Revenue, Falck Holding A/S

EBITA, pro forma EBITA margin EBITA, Falck Holding A/S

Revenue and organic growthDKK million %

EBITA and EBITA marginDKK million %

2011 2012 2013 2014 20150

3,500

7,000

10,500

14,000

17,500

0

3

6

9

12

15

2011 2012 2013 2014 20150

250

500

750

1,000

1,250

0.0

2.5

5.0

7.5

10.0

12.5

Normalised profit, pro forma Normalised profit, Falck Holding A/S

Free cash flow, pro forma Cash conversion rate Free cash flow, Falck Holding A/S

Normalised profitDKK million

Free cash flow and cash conversion rate DKK million %

2011 2012 2013 2014 20150

150

300

450

600

750

2011 2012 2013 2014 20150

200

400

600

800

1,000

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60

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120

150

2 Falck Annual Report 2015 | GroupManagement review




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Group | Falck Annual Report 2015 2

BER: KEY FIGURES AND RATIOS

DKK million 2015 2014 2013 2012 2011 *

INCOME STATEMENTResult for the year -586 218 205 119 15Impairmentandamortisationofintangibleassetsandcostsfrom business combinations 1,266 533 550 551 293Other normalisations - - - 24 15 Tax on normalisation items and changed tax rate -132 -133 -187 -135 -64

Normalised profit after tax 548 618 568 559 263

CASH FLOW STATEMENTEBITA 971 1,139 1,112 1,083 522 Impairment,amortisationanddepreciation 528 439 390 349 186EBITDA 1,499 1,578 1,502 1,432 708 Change in working capital including operating provisions -278 -117 -15 6 94 Investmentsinintangibleassetsandproperty,plantandequipment -814 -606 -530 -529 -190Sales of non-current assets 93 66 26 57 5

Free cash flow 500 921 983 966 617 Free cash flow after interest and tax 144 387 452 411 304 Investments in acquisitions -324 -698 -729 -639 -3,470 Capital injection, dividend paid, and changes in interest-bearing debt -142 407 260 239 4,224

Change in cash -322 96 -17 11 1,058

IntheGroup,cashflowsaredividedintofreecashflow,investmentsinacquisitionsetc.,capitalinjections,dividendspaidandchangeininterest-bearingdebt.Thefreecashflowisnetofinvestmentinproperty,plantandequipmentastheGroupinvestsinvehicles,infrastructureandsimilarassetsaspartofitsordinaryoperations.Thus,thefreecashflowreflectstheamountavailableforacquisitionsandrepayments on debt.

BALANCE SHEETOperating assets 2,885 2,437 2,000 1,792 1,590 Operating liabilities -3,428 -3,330 -3,142 -3,042 -2,851

Working capital -543 -893 -1,142 -1,250 -1,261 Operating provisions -162 -119 -77 -45 -54 Non-current assets excluding goodwill 2,619 2,308 2,105 1,950 1,746

Net operating assets excluding goodwill 1,914 1,296 886 655 431 Goodwill 10,038 10,516 9,971 9,554 9,083 Intangibleassetsfromacquisitions 1,674 1,970 2,261 2,634 3,005Incometaxes -67 -9 -21 -1 -47

Net operating assets including goodwill 13,559 13,773 13,097 12,842 12,472

EquityattributabletoFalckHoldingA/S 5,535 6,236 5,393 5,512 5,606Non-controlling interests 398 371 62 77 74

Total equity 5,933 6,607 5,455 5,589 5,680 Net interest-bearing debt 6,365 5,678 6,215 5,755 5,437 Provision for deferred tax 378 486 591 791 876 Non-operating assets and liabilities 883 1,002 836 707 479

Financing 13,559 13,773 13,097 12,842 12,472

*Thecomparativefiguresfor2011includetheperiod1Aprilto31December.TheratiosareproformafiguresbasedonfiguresfromtheFalckA/SGroup.

Emergency, 55.9%

Assistance, 20.7%

Healthcare, 15.7%

Safety Services, 7.7%

Revenue by geographical and business area

Denmark, 40.6%

Nordic region, 19.0%

Europe, 16.7%

North America, 15.5%

Latin America, 5.6%

Rest of the world, 2.6%

Group | Falck Annual Report 2015 3Management review




Content


Falck takes its responsibility seriously

Helping other people is a huge responsibility: it requires willing ness to collaborate, integrity and community spirit.

At Falck, we know exactly what skills our employees must possess in order to provide aid and assistance to other peo-ple. For almost 110 years, it has been Falck’s mission to help people in emergency situations: from patients needing an am-bulance to car owners with engine failure, rescuing residents from burning buildings or helping people with occupational injuries.

Providingcareandefficientservicesisthereforeacommontraitamongourdedicatedstaff,whoareallexceptionalinsupportingoureffortstoassistpeopleallovertheworld.

Falck is special because we are entrusted with the task of rescuing people in situations when they are at their most vul-nerable. This is testament to the trust citizens, customers and business partners place in us, and it entails a responsibility that we take very seriously. Falck could not exist without this trust, and we know that Falck will only exist as long as people feelsecurewithusandaresatisfiedwithourservices.

Trust is crucial for Falck’s continued global expansion. Based on this we strengthened our position on the most important markets in Europe, the United States and Latin America, and our total revenue grew by 9.1% to reach DKK 15,227 million.

InSpain,forexample,Falckexpandedtheambulanceservicesto several areas surrounding Barcelona, serving 2.1 million citizenswith1,200staffand380vehicles.IntheUnitedStates, Falck won a number of major multi-year contracts representingmorethan100,000responsesannually.InLatinAmerica, Falck stabilised its position as the leading subscrip-tion-based ambulance operator on the continent, with a num-ber of private subscribers that grew to reach more than one million.InDenmark,Falckretaineditspositioninfourofthefiveregions,butdidnotwinthecontractforambulanceser-vices in the Region of Southern Denmark, which represented 106,000 annual responses.

Falckwonanumberofnewcontractsinthefieldofglobaltravelassistance,significantlyexpandingitsmarketposition.IntheScandinavianalarmmarket,Falckcontinuedtogener-atesignificantgrowthinthesaleofalarms.IntheHealthcarebusiness, Falck delivered several healthcare solutions and signed a number of major agreements with insurance compa-nies on health insurance management.

Intermsofearnings,2015wasachallengingyear,withadropinbothoperatingprofitandprofitfortheyear.ThisnegativetrendwasstronglyinfluencedbydevelopmentsintheSafetyServicesbusiness–whichprimarilyofferssafetytrainingtooffshoreworkers–asaresultofthecrisisintheglobaloilandgasindustrystemmingfromverylowoilprices.In2015,oilandgascompaniessignificantlyreducedtheiroffshoreheadcountandthusalsothenumberofstaffsentfortrain-ing at the Safety Services training centres. An assessment of performance for the business area resulted in impairment ofgoodwill,andthishadasignificantadverseimpactontheGroup’s result for the year.

Falck’s other business areas showed a stable performance but wereaffectedbystart-upcostsrelatedtonewcontracts.

Falck’s revenue is expected to continue growing in the com-ing year. The Safety Services business, however, is expected tocontinuetobesignificantlyimpactedbythelowoilprices.

Several countries show increased demand for high-quality ambulanceservices,efficientfirefightingservices,skilledroadsideassistanceandeffectivehealthcaresolutions.Falck’shighlyqualifiedandcapableemployeesarereadyandequipped to deliver these services with an equal portion of careandefficiency.

Peter Schütze Allan Søgaard Larsen Chairman President and CEO

4 Falck Annual Report 2015 | Management reviewManagement review




Content


BER: FALCK TAKES ITS RESPONSIBI-LITY SERIOUSLY

FALCK INTRODUCED A NEW TYPE OF AMBULANCE IN 2015AND EXPECTS TO ROLL OUT THE NEW MODEL IN ITS EUROPEAN OPERATIONS.

Management review




Content

Major events during the year

February

Falck increases healthcare activities in SwedenFalck signs an agreement for the acquisition of Manpower Hälsopartner, a provider of healthcare services to industrial companies and public-sector customers in Sweden. The company and its 160 employees are integrated into Previa, a subsidiary acquired by Falck in 2014.

April

Falck wins major ambulance contract in SpainDuringthecomingsixtotenyears,1,200Falckstaffand380 Falck vehicles will provide ambulance services to 2.1 million citizens in several areas around Barcelona, the second largest city in Spain. Competing against nine other bidders in the tender process, Falck is assessed to provide the best quality for the price in all of the six areas for which Falck submitted bids. However, due to tender restrictions, contracts are only awarded to Falck for three of the areas.

Spain

May

Falck wins large contracts in the United StatesFollowing a major tender process, Falck wins a multi-year contract in Salem, Oregon, deploying 15 vehicles for am-bulance and patient transport services in July.

InOrange County, California, Falck wins contracts for ambulance services in four offivepossibleambulancezonesunderamulti-year contract. Falck deploys an addi-tional 31 ambulances in the area.

US

Finland

July

Falck acquires ambulance company in FinlandFalck is now the biggest private-sector pro-vider of patient transport and ambulance services in Finland. This is a result of the company’s acquisition of Finnish ambu-lance service provider 9Lives, which operatesafleetof61ambulancesandemploys 300 staff, who handle 100,000 responses annually.

Sweden

January

Reduction of staff in Safety ServicesThe continued drop in oil prices leads to a reduced number of course attendees at the Safety Services training centres. As a consequence, the number of employees at the centres is cut by 20% over the course of the year.





Content


BER: HIGHLIGHTS OF THE YEAR

December

Falck wins contracts with the largest insurance company in DenmarkThrough contracts with Denmark’s largest insurance company, Tryg, Falck will now also manage the healthcare services provided to Tryg’s health insurance customers and supply travel and medical assistance to Tryg’s travel insurance customers. The customers include both private and corporate customers in Denmark, Sweden and Norway.

Falck wins additional major contract in the United StatesFalck has now extended its presence in the United States to include Aurora, Colorado. Competing with two national providers, Falck wins a multi-year contract for ambulance services and deploys 22 vehicles in September.

September

Ceases to provide ambulance services in the Region of Southern Denmark Falck’s contract with the Region of Southern Denmark ended, and the employees there have sought employ-ment with the new operator or in other parts of Falck Danmark where Falck has won contracts that require additionalstaffandresources.

US

November

Assistance Company of the Year 2015Falck Global Assistance receives the award as Assistance Company of the YearattheInternationalTravel&HealthInsuranceJournalIndustryAwardsinAthens, Greece. The jury highlights the fact that Falck Global Assistance has delivered persuasively strong results through high-quality services, a high level of supplier and business partner satisfaction, and the backing of a strong parent organisation.

Denmark

October

Falck enters the Swiss marketFalck acquires two small Swiss companies, Käch and MoPi.ch, which provide ambulance and patient transport services. The Swiss market is somewhat fragmented, and Falck intends to use the acquisition as a platform for organic growth, possibly also through further acquisitions.

Switzerland





Content


Financial review

Basis of preparationThefinancialreviewisbasedonthekeyfiguresandratiosstatedonpages2-3,andthefigurescannotinallcasesbede-riveddirectlyfromtheconsolidatedfinancialstatements.

Activities and earningsRevenue for 2015 was DKK 15,227 million, a year-on-year increase of 9.1% from 2014. The positive trend was mainly at-tributabletothefull-yeareffectofthemergerwithTrygheds-Gruppen’s healthcare companies in June 2014, but a number of minor acquisitions made in 2015 also contributed to the trend as described in note 25. Falck’s revenue growth for 2015 exceeds the guidance given in the Annual Report 2014.

The rate of organic growth was 2.2% compared with 6.8% in 2014. Organic growth was impacted by the significant slowdown in Safety Services and the Emergency contracts not renewed in Denmark and Sweden. Despite this, Emer-gency reported an organic growth rate of 3.5% because of strong growth in Europe, the United States and Latin America.

Since 2011, the Group has achieved average annual revenue growth of 10.6%, of which 6.2 % was organic growth.

Operatingprofitbeforecosts,impairmentandamortisa-tionfromacquisitions(EBITA)wasDKK971million(2014:DKK1,139million),correspondingtoadecreaseofDKK168million. The decrease was primarily attributable to the slow-down in Safety Services, but increased costs in other busi-ness areas incurred with the aim of ensuring future growth also contributed to the trend. Falck continues to invest in

strengthening divisional management and increasing sales effortswhileatthesametimeapplyingsignificantcostsforthestart-upofnewactivitiesandnewcontracts.TheEBITAmargin was 6.4%, which was 1.8 percentage points below the original expectation for 2015, primarily as a result of the significantslowdowninSafetyServices,butalsoduetolowerearnings than expected in Emergency and Healthcare.

Impairmentandamortisationofintangibleassetsandcostsfrom business combinations totalled DKK 1,266 million (2014: DKK533million).Thesubstantialincreasewasattributabletoan impairment charge of DKK 750 million relating to Safety Services as a result of a slowdown in activities, and hence earnings, following the sharp drop in oil prices.

Financials decreased against the 2014 level and amounted toanetexpenseofDKK226million(2014:DKK273million).The decrease was primarily attributable to decreasing interest rates.

TaxonprofitfortheyearwasDKK63million(2014:DKK107million),equivalenttoaneffectivetaxrateof31.5%(2014:32.3%).

Result for the year amounted to a net loss of DKK 586 million (2014:DKK218million).Thedevelopmentwasduetotheim-pairment charge discussed above and lower earnings in Safety Services.

NormalisedprofitfortheyearaftertaxwasDKK548million(2014:DKK618million)asaresultofthegeneralslowdowninSafety Services.

Revenue, EBITA and organic growth by business area

Revenue EBITA EBITA margin (%) Organic growth (%)DKK million % of total 2015 2014 2015 2014 2015 2014 2015 2014

Emergency 62.3 9,340 8,688 525 552 5.6 6.4 3.5 8.6 Assistance 21.6 3,162 3,012 290 308 9.2 10.2 5.3 1.4 Healthcare 13.1 2,452 1,829 141 132 5.8 7.2 3.1 11.8 Safety Services 9.8 1,241 1,366 15 147 1.3 10.7 -14.2 5.5 Eliminations -6.8 -968 -943 Group total 100.0 15,227 13,952 971 1,139 6.4 8.2 2.2 6.8





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BER: FINANCIAL REVIEW

Cash flows and financingThefreecashflowwasDKK500million(2014:DKK921mil-lion),andtheGroup’scashconversionrate(freecashflowdividedbyEBITA)was51.5%(2014:80.9%).

Thefreecashflowin2015wasaffectedbyanincreaseinworking capital of DKK 278 million and a DKK 344 million (2014:DKK204million)investmentinnon-currentassetsre-latedtotheexpansionandstart-upofactivities.Investmentsin non-current assets totalled DKK 721 million (2014: DKK 540 million).

IncometaxpaidamountedtoDKK145million(2014:DKK269million).Thereductionwasattributabletoalowerpaymentof tax on account. Falck paid DKK 244 million (2014: DKK 295 million)indirectandindirecttaxesinDenmarkin2015.

Payments for acquisitions totalled DKK 324 million (2014: DKK698million)andprimarilyrelatedtoacquisitionsofam-bulance and patient transport activities in Denmark, Finland and the United States.

Outlook for 2016The Group expects to achieve revenue growth in the region of10%for2016,attributabletothefull-yeareffectofnewcontracts and acquisitions made in 2015.

TheEBITAmarginfor2016isexpectedtoberetainedatalevel of about 6.5%.

Forward-looking statementsCertainstatementsinthisfinancialreviewareforward-looking statements. Such statements are based on current expectations and are by their nature subject to a number of uncertainties that could cause actual results and performance todiffermateriallyfromexpectedresultsorperformance,ex-pressed or implied, in the forward-looking statements.

SINCE 2011, THE GROUP HAS ACHIEVED AVERAGE ANNUAL REVENUE GROWTH OF 10.6%, OF WHICH 6.2% WAS ORGANIC GROWTH





Content


Business areas and their performance

AssistanceFalck is the largest provider of assistance services in the Nordic region to car and home owners. The services provide people with the greatest possible safety and security, either by preventing accidents or by providing fast and competent assistance when accidents happen. Assistance services are often subscription-based. As an example, Falck helps car owners whose vehicle has broken down: in most cases, Falck staff can repair the car on the spot. And Falck helps home owners with everything from water in the basement to snow on the roof.

EmergencyFalck is the largest international ambulance service provider in the world. Falck provides ambulance services to people on five continents in close collaboration with the authorities. Falck operates more than 2,500 ambulances treating more than four million sick or injured people every year. Private citizens also make increasing use of home calls by Falck doc-tors and visit Falck’s medical and healthcare clinics. Falck is also the world´s largest international firefighting operator, with activities in Europe, Latin America and Asia.

In connection with heavy rainfalls and storms in 2015, Falck assisted 9,545 families whose basements were flooded or houses were otherwise damaged.

The number of rescue officers, nurses, doctors and other staff grew to 23,800 in 2015.

56% 20%54% 30%

9,54523,800

Share of Group revenue Share of Group revenue Share of Group EBITA Share of Group EBITA





ContentBER: BUSINESS AREAS

HealthcareFalck is the largest private provider of healthcare services in Scandinavia and helps companies and organisations keep their employees and citizens healthy and able to function. An important part of Falck Healthcare’s activities consists of preventing illness, stress and strain. The goal is to en-sure that each individual has a better, longer and healthier worklife. This also means greater job satisfaction in the workplace, as well as lower costs related to illness, lower public-sector costs for social security, and lower costs for in-surance companies, saving money on claims resulting from a reduction in or loss of working capacity, for example.

Safety ServicesFalck is the world’s largest provider of rescue and safety training, providing courses and services at 37 training centres in 19 countries on five continents. The training is aimed at the offshore industry and the maritime sector, but the wind energy, chemical and aviation industries also make use of Falck’s facilities and services. At the training centres, people are instructed in safe behaviour to help avoid accidents in the workplace, and they are taught how to react correctly – also under extreme conditions – if accidents do occur. In addition, Falck has a number of training centres specially designed for training firemen in advanced fire prevention and firefighting.

Falck trained 308,000 people, especially offshore staff, to mind their own safety as well as the safety of their colleagues.

More than three million people in Denmark, Norway and Sweden have access to Falck’s healthcare services.

16% 8%14% 2%

308,000

Share of Group revenue Share of Group revenue Share of Group EBITA Share of Group EBITA

3,000,000





Content

AT THE HEART OF FALCKWORKING IN CLOSE COLLABORATION WITH THE AUTHORITIES, FALCK PROVIDES AMBULANCE SERVICES IN 22 COUNTRIES WORLDWIDE. EACH YEAR, FALCK RESPONDS TO MORE THAN FOUR MILLION CALLS: TO HELP HEART ATTACK VICTIMS, VICTIMS OF TRAFFIC ACCIDENTS, WOMEN WHO SUDDENLY GO INTO LABOUR, CHILDREN WHO HAVE BEEN HURT, ELDERLY PERSONS NEEDING RELIABLE TRANSPORTATION TO THE DOCTOR, AND MANY OTHERS.

AT THE HEART OF FALCK’S ACTIVITIES ARE AMBULANCE SERVICES, AND THAT IS WHERE FALCK’S CORPORATE VALUES, ACCESSIBLE , COMPETENT, EFFICIENT, FAST, HELPFUL AND RELIABLE, WERE FORGED.

EMERGENCY

Management review




ContentBER: EMERGENCY

People helping people

Falck’s employees are people helping people. They invest their heart and soul in their work, which helps create a corporate culture of people who are proud of what they do.

Management review




Content

Largeindustrialcompanieswithstrictfiresafetyrequire-ments are increasingly seeking an international business partnerabletoprovideefficientandhighlyspecialisedfire-fightingservicesofhighquality.Thishasledtoanincreaseintheoutsourcingoffirefightingservices.

Ambulance services and patient transportFalck aims to be the private-sector ambulance provider that offersthehighestqualityandreliabilityofsupplyinallthecountries where it has ambulance and patient transport op-erations.

Falck’s ambulance operations began in Denmark, where Falckhasprovidedambulanceservicessince1908.In2014and 2015, all ambulance contracts were put out to tender in Denmark, and Falck successfully retained a high market share. Offeringthebestcombinationoflowprices,highqualityandreliability of supply, Falck won the contracts for the maximum number of services possible within the framework of the ten-dersinfourofthefiveDanishregions.Regrettably,Falckwasforced to discontinue its ambulance operations in the Region

IntheEmergencybusiness,Falckiscommittedtoprovidingambulance,patienttransportandfirefightingservices,alongwith treatment at medical and health clinics. Falck maintains a global focus in all three areas.

In2015,Falckcontinuedtoexpanditsambulancebusinessin-ternationally in a highly fragmented market characterised by a growing demand for high-quality services. Falck won a num-ber of major new contracts in several markets in 2015 and set up new ambulance operations in Malaysia and Switzerland. Falckprovidesambulanceservicesin22countriesonfivecon-tinents and operates more than 2,500 ambulances worldwide.

Falck’sindustrialfireservicesalsosawsignificantgrowth.In2015, Falck began providing services under contracts with, forexample,MercedesBenzinSpain,DupontIndustriesinGermany, the Maurice Lemaire tunnel project in France, and theairportsofLisboninPortugalandToulouseinFrance.InRomania, Falck also contracted to provide more services and hiredanadditional110firefighters.Also,FalcknowhandlesfiresafetyattwoGermanrefugeecamps.

Emergency

DKK million 2015 2014

Emergency Revenue 9,340 8,688 Revenue growth 7.5% 9.2%Organic growth 3.5% 8.6%EBITA 525 552EBITAmargin 5.6% 6.4%

FALCK IS THE GLOBAL LEADER IN AMBULANCE SERVICES, PATIENT TRANSPORT AND FIRE SERVICES, WITH OPERATIONS IN 32 COUNTRIES AND A HEADCOUNT THAT INCLUDES 23,800 RESCUE OFFICERS, NURSES, DOCTORS AND OTHER STAFF

• Won a number of major ambulance service contracts in Spain and the United States

• Awarded several contracts for industrialfireservices

• Expanded its global network of health and medical clinics

• Ceased to provide ambulance services in the Region of Southern Denmark





Content


of Southern Denmark in 2015, after 96 years of service in the region. Three of four contracts were awarded to a new, foreign provider. The last of the new and renewed contracts were fully implemented in early 2016 and run for a term of fivetotenyears.

A new type of ambulance was introduced in Denmark in 2015, and Falck expects to roll out the new model in several of its European operations over the next few years. Developed in a joint collaboration between Falck employees in eight Eu-ropean countries, the new ambulance is designed to ensure safety, security and comfort for patients as well as safety and flexibilityforFalck’srescueofficers.

Falck is the second-largest provider of ambulance services and patient transport services in the United States, with 4,300 em-ployees and 775 vehicles in 15 states. During the year, Falck won a number of large-scale multi-year contracts, in Orange County, California; Salem, Oregon; and Aurora, Colorado, with a combined number of responses in excess of 100,000. Falck also acquired Rapid Response EMS in Detroit, Michigan, acompanyemployingjustover200staffandoperating45vehicles.

InLatin America, Falck consolidated its position as the lead-ing ambulance operator on the continent, with the number of private subscribers that grew to reach more than one million in the month of October. The citizens of Colombia, Ecuador, El Salvador, Panama, Uruguay and Venezuela now have access to

RevenueDKK million

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Falck ambulancesNumber

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2011 2012 2013 2014 2015

7.5% 3.5%From 2014 to 2015, revenue grew by

The organic growth rate was

In 2015, Falck won a number of new industrial firefighting contracts

2,500The number of ambulances rose to





Content


Inlate2015,inAsia, Falck signed a contract to acquire a small ambulance company in Malaysia, First Ambulance Services, which operates 16 ambulances.

Through its acquisition of the company Deanmac in 2015, FalckincreaseditsstaffinAustraliato240employees.InAustralia and in Papua New Guinea, Falck currently provides ambulanceandfireservices,runsmedicalclinicsandofferssafety training to the mining, oil and gas industries in remote areas located far away from emergency service centres.

Fire servicesFalck currently has contracts with 63 of the 98 Danish munici-palitiestoprovidefireservices.ThefirefightingbusinessinDenmark is currently undergoing a major structural transition involving the establishment of twenty new inter-municipal emergencyandfirefightingauthorities.Falckisaparticipantintheprocess,offeringthenewentitiesarangeofsolutions.Among other things, this resulted in a contract with the re-centlyestablishedfireservicefortheareasurroundingthecapital region, which serves a population of nearly 300,000.

Based on Falck’s more than 100 years of experience in provid-ingfireservicesinclosecollaborationwiththeDanishauthori-ties and its experience from acquired operations in Europe, Falckcontinuedtoexpanditsfirefightingactivitiestargetingindustrial customers.

Falck has established operations relating to the operation of industrialfireservicesinanumberofEuropeancountriesandin Latin America and Asia.

With the aim of ensuring a consistently high quality of ser-vicesacrossallofFalck’sfireactivities,theseactivitieshavebeencertifiedtotheISO9001,14001andOHSAS18001standards.In2015,FalckwascertifiedtotheISOstandardinthe Netherlands, the United Kingdom, Turkey and Germany. Inaddition,Falckisamemberoftheleadingglobalindustrial

Falck ambulance services in cases of accidents or illness, and they can arrange for home visits by a doctor, be treated at Falck’smedicalandhealthclinics,orconsulthealthcarestaffover the telephone.

InEurope, Falck is one of the leading private-sector Ambu-lance operators in a number of countries, among them Po-land, Slovakia, Sweden and Germany.

Falck is now a major player in Spain following a large expan-sion in its operations after winning contracts for ambulance services and patient transport services for 2.1 million citizens around Barcelona, the second largest city in Spain, who will be served by 1,200 employees and 380 vehicles. Compared with the nine other bidders in the tender process, Falck was as-sessed to provide the best quality for the price in all of the six areas for which Falck submitted bids. However, due to tender restrictions, contracts were only awarded to Falck in three of the areas.

In2015,FalckacquiredanumberofnewminorcompaniesinEurope,resultinginafurtherexpansioninitsoperations.InFinland, Falck became the country’s largest ambulance provid-erafteracquiringlocalcompany9Lives.InSwitzerland,Falckacquired two small companies, Käch and MoPi.ch, aiming to establish ambulance operations in the country.

FALCK’S INDUSTRIAL FIREFIGHTING OPERATIONS ARE PRIMARILY AIMED AT COMPANIES INVOLVED IN HIGH-RISK ACTIVITIES.

“Fast” is one of Falck’s valuesThe difference between life or death canbe just seconds, and that is why Falck arrives quickly at the site of an accident





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trade organisations in order to remain at the forefront of new safety requirements and regulations.

Falck’sindustrialfirefightingoperationsareprimarilyaimedatcompanies involved in high-risk activities such as airports, pet-rochemical plants and nuclear plants, but Falck also provides fireservicestocompanieswithlower-riskactivitiesthatalsoneed and want to protect their employees and assets against theriskoffire.

In2015,Falckwonanumberofnewfirefightingcontracts,includingoneforthedeliveryoffireservicestotheToulouse-Blagnac Airport in France. This airport serves eight million passengersannually,andFalckwillbedeploying43fire-fighterstotheservice.Falckalreadyprovidesfireservicestothe international airport in Rio de Janeiro, Brazil. Falck now providesfireservicestofiveairportsandeightnuclearplantsand petrochemical plants.

Medical and healthcare clinicsAfter expanding its global network of health and medical clin-ics in 2015, Falck now operates more than 300 clinics world-wide as part of its Rescue and Healthcare services. The clinics range from small practices with one or two employees to medical clinics with companies in remote locations and outpa-tientclinicswithtwentydifferentareasofexpertise.

To ensure a consistently high quality of services at Falck’s clin-ics, their general policies, instructions and ethical codes were drafted in accordance with guidelines from organisations such astheWorldHealthOrganisation(WHO)andtheWorldMedi-cal Association, as well as leading accreditation bodies such as theJointCommissionInternational.

With a view to establishing ambulance and clinic operations in Africa,Falckestablishedapartnershipin2015withtheIFC(In-ternationalFinanceCorporation)andtheIFU(IndustrializationFundforDevelopingCountries).

300Falck now operates more than 300 health and medical clinics worldwide.

Financial performanceRevenue in Emergency totalled DKK 9,340 million, equivalent to an increase of 7.5%, of which organic growth accounted for3.5%.Organicgrowthwasadverselyaffectedbythelossof contracts in the Region of Southern Denmark, coupled with restrictions in the number of contracts Falck was able to win again under tender conditions. This was, however, more thanoffsetbythenewcontractswonintheUnitedStatesandstrong growth in several markets in the rest of Europe and in Latin America.

Operatingprofit(EBITA)decreasedbyDKK27milliontoDKK525million.The2015performancewasaffectedbythecostsof commencing new major contracts in Spain and the United States and the costs of commencing and closing down con-tractsinDenmark,whichhadacombinedone-offeffectofDKK 60 million.





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FAST ASSISTANCEEVERY MINUTE OF EVERY HOUR OF EVERY DAY, FALCK’S ROADSIDE ASSISTANTS ARE ON THE ROAD, HELPING PEOPLE WITH VEHICLES THAT ARE STUCK OR HAVE ENGINE PROBLEMS, OR PEOPLE WHO HAVE BEEN INVOLVED IN ACCIDENTS.

HOME OWNERS ALSO BENEFIT FROM FALCK SERVICES, WHICH INCLUDE ASSISTANCE IN PREVENTING DAMAGE FROM WIND STORMS, FLOODING AND GAS LEAKAGE AS WELL AS ASSISTANCE IF DAMAGE HAS OCCURRED.

ASSISTANCE

Management review




ContentBER: ASSISTANCE

Quickly back on the road

Falck’s roadside assistants can usually solve car problems on the spot, ensuring that the subcribers can continue their journey.

Management review




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Assistance

AS THE LEADING PROVIDER OF ASSISTANCE SERVICES IN THE NORDICS, FALCK ASSISTS WITH BOTH MINOR AND MAJOR PROBLEMS AND ACCIDENTS RANGING FROM CAR FAILURE, BURGLARY, ILLNESS TO ACCIDENTS DURING TRAVELS ABROAD

number of new attractive services, among them regular ve-hicle inspection, repair of stone chip damage and change of winter/summertyrestwiceayear.

Also,Falckwasre-awardedacontractwithIf,thelargestinsur-ance company in the Nordics, which provides insurance cover to car owners in Finland, Norway and Sweden. Falck addition-ally signed a new contract for roadside assistance with Nor-wegian insurance company Gjensidige Forsikring.

Inlate2015,FalckacquiredtheLithuaniancompanyUABAtlasAssistance, Lithuania’s leading roadside assistance provider. The company receives 60,000 calls annually from customers needing help.

Falck captured additional market share in the alarm services market and increased its sale of alarms in Denmark, Norway and Sweden. Falck’s alarms distinguish themselves by being multi-functional:abletodetectbreak-ins,waterdamage,fireand high carbon monoxide levels.

All of Falck’s assistance services are aimed at providing safety for customers, either by preventing accidents or providing rescue services if an accident does happen.

Falck’s Assistance activities include car, home and family as-sistance, including roadside assistance, transport to and from treatment facilities, assistance in connection with critical damage to the home or with alarms installed in people’s resi-dences.

These services are aimed at private individuals, businesses, insurance companies and public authorities in Denmark, Esto-nia, Finland, Lithuania, Norway and Sweden.

At the end of 2015, a total of 1.1 million private individuals, businesses and institutions in the Nordic region subscribed to Falck’s services.

InSweden,inparticular,Falcksignificantlyincreasedsalesofautomobilesubscriptionstoprivateindividualsin2015.InDenmark, Falck launched a new subscription that includes a


Assistance Revenue 3,162 3,012Revenue growth 5.0% 0.3%Organic growth 5.3% 1.4%EBITA 290 308EBITAmargin 9.2% 10.2%

• Developednewservicestobeofferedtosubscribers

• IncreasedalarmsalesinScandinavia compared to prior years

• Won new contracts for travel assistance services





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Due to the more severe weather conditions in the Nordic countries, there is a growing demand for a provider that deliv-ers fast and skilled assistance in the event of cloudbursts or severe storms. With its large number of employees trained in providing emergency assistance, Falck is uniquely positioned tohelppeopleinemergencysituations.In2015,Falckassisted9,545familieswho,forexample,sawtheirbasementsfloodedafterheavyrainfallsorsuffereddamagetotheirhousesdueto storms.

Subscriptions for transport in connection with medical treat-ments, hospital appointments and other healthcare treat-ments were updated to also include assistance in obtaining a quick diagnosis, navigating the healthcare system and exercis-ing patients’ rights.

Global travel assistanceInthetravelassistancebusiness–throughFalckGlobalAssis-tance–Falckoffersservicestoinsurancecompanies,business-es and public institutions in a number of countries in order to assist customers or employees who are travelling or staying abroad. The services include, for example, assistance in con-nection with hospitalisation, evacuation or home transport as well as guidance in relation to health and safety matters.

In2015,suppliersandbusinesspartnersselectedFalckGlobalAssistance to receive the award for Assistance Company of theYearattheannualInternationalTravel&HealthInsuranceJournal’sIndustryAwards.Falckis,ofcourse,proudtohavereceived this award, which, together with its alarm centres establishedintheScandinaviancountriesandinIndia,Chinaand the United States, strongly positions Falck for a continued roll-out of Falck Global Assistance in other countries.

AnofficewasestablishedinSpainforthepurposeofprovid-ingbetterandmoreefficientassistancetotheconsiderable

number of Scandinavian and other travellers in the area. Falck continually considers other prospective markets where the number of travellers could provide a basis for establishing an officeoraclinictoassistpeople.

In2015,Falckimproveditspositioninthemarketfortravelin-surance, risk management services and assistance to business travellers.Falckoffersauniqueservicecalleddutyofcare,which combines leading insurance solutions with risk manage-ment and assistance services through a global partnership with London-based insurance brokers Special Contingency Risk.

Falck generated high growth, winning a number of new contracts within global travel assistance, including the right to assist insurance company Tryg’s customers from the Scan-dinavian countries when they travel around the world. This agreement has made Falck the market leader in Denmark in thefieldoftravelandmedicalassistance.

Financial performanceRevenue in Assistance totalled DKK 3,162 million, equivalent to an increase of DKK 150 million, of which organic growth accounted for 5.3%. A high level of activity in Falck Global As-sistance was the main growth driver, together with roadside assistance activities in Finland, Norway and Sweden.

Operatingprofit(EBITA)wasDKK290million,ayear-on-yeardecrease of DKK 18 million. The change was mainly attribut-able to investments in additional sales and marketing iniatives with the aim of expanding its customer portfolio in the com-ming years.

RevenueDKK million

Organic growth%

Subscribers*Number

* Excluding divestments

0

700

1,400

2,100

2,800

3,500

2011 2012 2013 2014 2015

0

2

4

6

8

10

2011 2012 2013 2014 2015

0

300,000

600,000

900,000

1,200,000

1,500,000

2011 2012 2013 2014 2015

From 2014 to 2015, revenue grew by DKK million


The number of subscribers was

150 5.3% 1,130,000





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PREVENTION PAYSFALCK BELIEVES IN THE VALUE AND POTENTIAL OF PREVENTIVE HEALTH EFFORTS IN THE COMMUNITIES WE SERVE, WHETHER SEEN FROM A HUMAN PERSPECTIVE OR A FINANCIAL ONE. ANYONE CAN FALL ILL, HAVE THEIR BACK SEIZE UP, OR BE OVERCOME WITH STRESS. WHETHER WE LOOK AT IT FROM A HUMAN PERSPECTIVE OR A FINANCIAL ONE, WE CANNOT AFFORD TO LOSE ANYONE’S SKILLS AND KNOWLEDGE.

THIS IS WHY FALCK HEALTHCARE WANTS TO HELP PEOPLE AND EMPLOYERS TACKLE HEALTH ISSUES BEFORE THEY LEAD TO SICKNESS ABSENCE.

HEALTHCARE

Management review




ContentBER: HEALTHCARE

Working across disciplines

Falck has a network of more than 3,000 physiotherapists, chiropractors, mas-sage therapists, psychologists and other healthcare professionals. They all work together to limit the loss of people’s ca-pacity to work, a loss that in most cases can be limited considerably by taking quick action.

Management review




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Healthcare

FALCK IS THE LARGEST PROVIDER OF EMPLOYEE HEALTHCARE SERVICES IN SCANDINAVIA AND HELPS BUSINESSES AND ORGANISATIONS KEEP THEIR EMPLOYEES AND CITIZENS HEALTHY AND ABLE TO FUNCTION

In2015,Falckconsolidateditspositionasthelargestproviderin the Swedish market with its acquisition of Manpower Häl-sopartner, which provides healthcare services, especially to in-dustrial companies and public sector customers. The company and its 160 employees have been integrated into Previa, a subsidiary that Falck acquired from Tryghedsgruppen in 2014. Falckisthusstronglyrepresentedinthefieldofhealthcareso-lutions for industrial companies, public-sector customers and insurance companies in Sweden.

As a result of collective bargaining in Denmark, a number of public-sector employees now have access to Falck’s health plans.TheefforttoextendFalck’scollaborationwithinsur-ance companies to include all treatments under their health insuranceplanscontinues.In2015,thisworkresultedinanagreement with DKV Hälsa in Sweden and, in late 2015, a con-tract with Denmark’s largest insurance company, Tryg, under which Falck will manage health services for Tryg’s customers.

InNorway,integrationofthecompaniesacquiredin2014wascompleted, and Falck embarked on new contracts to provide services similar to those provided in the other countries. This has strengthened Falck’s position in the Norwegian market

Falck Healthcare has three primary areas of focus: on-the-job health,healthcarestaffingservicesandpublichealthcareandemployment partnerships.

Thereissignificantpressureonthepublicwelfaresystemsin Scandinavia today. Falck wants to be the leading business partner for private enterprises, public institutions and insur-ance companies and assist them in keeping employees, citi-zens and customers healthy. The purpose of Falck’s healthcare services is to reduce sickness absence, limit the loss of capac-ity for work and early retirement due to disability that in most cases can be reduced considerably by taking quick action. Falck provides easy access to healthcare services, including ap-pointments with the right specialist or therapist.

On-the-job health servicesFalck has a network of more than 3,000 physiotherapists, chiropractors, massage therapists, psychologists and other healthcare professionals and provides health plans covering more than three million people across Denmark, Norway and Sweden. Moreover, Falck provides quick and easy access to healthcare services in the Scandinavian countries: for exam-ple, appointments with the right specialist or therapist.


Healthcare Revenue 2,452 1,829Revenue growth 34.1% 51,7%Organic growth 3.1% 11.8%EBITA 141 132EBITAmargin 5.8% 7.2%

• Strengthened its position in the Swedish market for employee healthcare through the acquisition of Manpower Hälsopartner

• Provided healthcare schemes to several public-sector employees in Denmark

• Won several contracts for the operation of Danish medical clinics





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and enabled the company to assist even more of its custom-ers’ employees.

Healthcare staffingFalck has a network of more than 20,000 healthcare profes-sionals covering the majority of specialities in the healthcare sector. These employees assist public authorities in handling work pressure during peak periods and sickness absence. The network also assists in tackling the increasing challenge of recruiting personnel for healthcare services in outlying areas in Scandinavia.

Collaboration with public authoritiesFalck is focused on contracting with public authorities for job training in collaboration with job centres, handling aids and appliances for the elderly and disabled, and running medical practices on behalf of the public sector.

As of 2015, regulation governing general practitioners in Den-mark was partly liberalised, and business enterprises can now operate general practitioners clinics if a region is unable to re-cruit a general practitioner for the area. This has resulted in a number of tender processes, and Falck won the contracts for the operation of six general practitioners clinics in Denmark. Falck also took over a medical clinic in Sweden in 2015.

Inthefieldofjobtrainingonbehalfofjobcentres,Falckcon-tracted with additional municipalities in 2015 and was able to offerthemanevenwiderrangeofservicesforillandunem-ployed citizens.

Financial performanceRevenue in Healthcare totalled DKK 2,452 million, equivalent to an increase of DKK 623 million from 2014. The increase mainlyrelatedtothefull-yeareffectoftheacquisitionofTryghedsgruppen’s healthcare activities in 2014. The rate of

organicgrowthwas3.1%,primarilyattributabletosignificantorganicgrowthinSwedenfromhealthcarestaffingservicesand employee assistance programs for private-sector business and insurance companies.

Operatingprofit(EBITA)wasDKK141million(2014:DKK132million).Thepositivetrendwasmainlyattributabletoacquisi-tions while related integration costs and the costs of setting up new operations detracted from performance.

300In Scandinavia, Falck Healthcare has more than 300 healthcare clinics which help people keep healthy and reduce sickness absence.

RevenueDKK million

Organic growth%

Healthcare professionalsNumber

0

500

1,000

1,500

2,000

2,500

2011 2012 2013 2014 2015

-10

-5

0

5

10

15

2011 2012 2013 2014 2015

0

1,500

3,000

4,500

6,000

7,500

2011 2012 2013 2014 2015

From 2014 to 2015, revenue grew by


The number of healthcare staff rose to

34.1% 3.1% 7,464





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SAFETY SERVICES

TRAINING SAVES LIVESEMPLOYEES WORKING ON OFF-SHORE OIL AND GAS INSTALLATIONS, ON BOARD VESSELS AND IN SEVERAL OTHER INDUSTRIES ARE OFTEN FAR FROM ASSISTANCE IN THE EVENT OF AN ACCIDENT.

FOR THIS REASON, IT IS NECESSARY FOR THEM AND THEIR EMPLOYERS TO BE ABLE TO PROVIDE FIRST AID, FIGHT FIRES AND EVACUATE PEOPLE QUICKLY AND SAFELY. AT TRAINING CENTRES ALL OVER THE WORLD, FALCK INSTRUCTORS USE REALISTIC SURROUNDINGS TO TRAIN PEOPLE IN SAFEGUARDING BOTH THEIR OWN SAFETY AND THAT OF THEIR COLLEAGUES.

Management review




ContentBER: SAFETY SERVICES

Dedicated personnel

The Falck Safety Services team is made up of over 1,000 highly skilled, experienced personnel with experience from fire brigades, the armed forces, and the off-shore and maritime sectors.

Management review




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Safety Services

FALCK PROVIDES RESCUE AND SAFETY TRAINING AIMED IN PARTICULAR AT OFFSHORE STAFF THROUGH 37 TRAINING CENTRES IN 19 COUNTRIES ALL OVER THE WORLD, MAKING FALCK THE WORLD’S LARGEST PROVIDER OF RESCUE AND SAFETY TRAINING FOR THE OFFSHORE INDUSTRY

drop by more than 60% in about a year. This prompted the industrytoreduceoffshoreactivitiesconsiderablyand,asaresult, drastically cut the number of employees receiving res-cueandsafetytraining.Severalmarketswerealsoaffectedbyincreased price pressure.

Because of the market decrease in new projects embarked upon by oil and gas companies in 2015 and their general cut-back in activities, the number of course participants at Falck’s centres fell from 370,000 in 2014 to 308,000 in 2015.

The slowdown in activities forced Falck to cut costs: the numberofstaffinitsSafetyServicesbusinesswasreducedby about 20%, and one of Falck’s training centres in Norway wasclosed.Theentireoffshoretrainingsectorhasbeensig-nificantlyimpactedbythedropinoilprices.Sofar,Falckhasmaintained its presence in all principal regions and retains its

At Falck’s training centres, course participants are instructed in preventing accidents in the workplace and taught how to react appropriately – also under extreme conditions – in real-istic settings. Participants are instructed in, for example, how to rescue themselves from a helicopter after an emergency landing,fightgasfiresorevacuateanoilrig.

EspeciallyemployeesfromtheoffshoreindustrymakeuseofFalck’s facilities, which is why these facilities are located close tooffshoreoilandgasfields.Butalsothemaritimeindustry,chemicals companies, airlines, the wind energy industry and mining companies use the special safety competencies devel-oped on the basis of Falck’s more than 100 years of experi-ence in rescue services.

The year 2015 was a very challenging one for the Safety Ser-vicesbusiness,whichwassignificantlyimpactedbythecrisisin the global oil and gas industry, which saw the prices of oil


Safety Services Revenue 1,241 1,366Revenue growth -9.1% 3.8%Organic growth -14.2% 5.5%EBITA 15 147EBITAmargin 1.3% 10.7%

• Trained 308,000 course participants in 2015, against 370,000 in 2014

• Reducedstaffbyabout20%

• Provided additional training services to the maritime industry





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ability to act as a global partner to oil and gas companies, but further restructuring should be expected.

With fewer course participants from the oil and gas industry, Falck has been able to deploy its training infrastructure in the service of other industries to compensate for the slowdown in activities. The safety training activities now also cover the maritime sector, which as of 2017 will be required by law to haveemployeesrefreshtheirsafetytrainingeveryfiveyears.Falck is also working to extend its collaboration with the wind energy industry.

As a small but stable activity, Falck also provides training for firefightersfromboththeindustrialandpublicsectors.AtFalck’sspecialfiretrainingcentresintheNetherlands,atotalofsome29,000firefightersfromallovertheworldreceivedadvancedfiretrainingcompliantwithleadingindustrialandinstitutional safety guidelines.

Financial performanceRevenue in Safety Services totalled DKK 1,241 million, equiva-lent to a decrease of DKK 125 million from 2014. Organic growthwasnegativeat14.2%despitethepositiveeffectofnew training services and a higher level of activity from the maritime sector attributable to the sharp drop in activities in the oil and gas industry.

Operatingprofit(EBITA)wasDKK15million,adecreaseofDKK132millionfrom2014,whichwasdrivenbythesignifi-cant slowdown in activities.

RevenueDKK million

Organic growth%

Course participantsNumber

0

300

600

900

1,200

1,500

2011 2012 2013 2014 2015

-15

-9

-3

3

9

15

2011 2012 2013 2014 2015

0

80,000

160,000

240,000

320,000

400,000

2011 2012 2013 2014 2015

Revenue in 2015 was DKK million


The number of course attendees decreased to

1,241 -14.2% 308,000

29,000In 2015, Falck trained close to 29,000professional firefighters in advanced fire fighting.





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Report on corporate social responsibility

Corporatesocialresponsibility(CSR)atFalckisdefinedasbusi-nesspracticesthatimproveFalckasaworkplaceandbenefitsociety beyond what the Group is formally required to do under the laws and regulations applicable in the geographies where the Group has operations.

Falck has activities in a number of countries, but, irrespective of culture and geography, CSR is always at the heart of Falck’s business. Therefore, it is an important part of the integration of new employees to ensure that the Group’s strong corporate values in relation to CSR and a sustainable business culture are conveyed to newcomers.

The basic approach to this ethical business foundation is reflectedinthefactthatFalckstaffcontinuetoprovideas-sistance in the areas in which Falck operates according to the commitment stated by the founder of Falck, Sophus Falck: Falck employees always help people and animals in emergency situations – whether or not payment can be expected.

Social and environmental considerations are deeply embed-ded in Falck’s business models and operations in its day-to-day interaction with local communities, business partners, custom-ers and other stakeholders in an endeavour to promote health, safety and a general improvement in social standards in the communities we provide services to.

Falck’s mission is to actively prevent accidents, disease and emergency situations, to rescue and assist people in emergen-cies and to rehabilitate people after illness and injury. Accord-ingly, Falck’s business model as such represents corporate social responsibility that has been systematised – and serves as a foundation for sustainable business development as well.

Assuming social responsibility is also to help strengthen the foundation of the communities Falck are part of – and to de-velop infrastructure and sustainable economic developments inthesecommunities.Theseeffortsarenotonlycontinuedwithin the Group’s original communities, but have been ex-tended to other parts of the world as well over the past few years.

Inthisway,Falckhelpstocreatesustainablejobsincountrieswhere the Group improves and has a positive impact on hu-man rights, including employment and working conditions and other social conditions. Moreover, Falck continues to exert a localinfluencebybringingattentiontothesustainabledevel-opmentofbusinessethicsandeffortstoprotectandimprovethe environment.

Code of Conduct

Environment,

including climateEmployment

conditionsSocietyBusiness ethics

Occupational health and safety

Falck’s Code of Conduct

At a minimum, Falck requires all its business entities to comply with applicable legal requirements in their countries of operation and with the Group’s Code of Conduct. These practices apply across the board, in all Falck business areas.

Falck’s Code of Conduct is based on the UN Global Compact and is therefore focused on respecting human rights and other key issues. The Code has been translated into all the languages represented at Falck and handed out to the Group’s employees. FalckfollowsitsCodeofConductinitseffortstorespectandpromotehumanrights,especiallythroughworkintheareasofemployment conditions, occupational health and safety, environmental protection and anti-corruption. The policies that expand onFalck’sCodeofConductandformtheframeworkforFalck’sCSReffortsspecificallyaddressthefollowing:





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BER: CORPORATE SOCIAL RESP

• Employment conditions: Falck’s contribution to ensuring long-term relationships with the employees of the Group

• Occupational health and safety: Falck’s contribution to en-suring a sound physical and mental working environment

• Environment, including climate: Falck’s contribution to a sus-tainable environment

• Business ethics: Falck’s insistence on zero tolerance of ex-ploitation, corruption and bribery

• Society: Falck’s contribution to the development of health and well-being in the societies of which we are a part

In2015,theworktooptimisethefundamentalorganisationoftheGroup’sCSReffortscontinued.Thisworkprimarilyre-volves around the strategically based CSR committee, whose members are the Group CFO and the four divisional CEOs from the Group’s four business areas.

Implementationofpoliciesandplansintheindividualbusi-nessunitsishandledby,amongothers,dedicatedCSRofficersappointed in each of the Group’s business areas in 2015. The year 2015 also saw the establishment of competence centres foreachoftheGroup’sfiveCSRpolicyareas.Themembersof these centres bring in-depth knowledge and experience gainedfromworkingwiththespecificpolicyareasonaday-to-day basis and thus add to the centres’ experience with imple-mentation of CSR initiatives within the Group.

Employment conditions

Falck’s services are often related to events that involve insecu-rity and anxiety for those involved.

Asaresult,Falck’sstaffmustpossessstrongsocialskills,including the ability to provide care, and personal values in ac-cordancewithFalck’svalues.Thisrequires,notleast,thatstaffare in possession of knowledge and skills that enable them to successfully resolve a given situation.

Skills are crucial to a successful handling of situations in which several employees work together. Especially in such cases, staffbeingacquaintedwitheachotherandhavingexperiencefrom continual training are critical to rendering professional andeffectiveassistancetothepeopleinvolved.

Falck therefore believes in long-term relationships with its employees in order to build up these skills and develop pro-cedures for working together in the individual teams. Also for

thesereasons,itisimportanttoFalcktokeepitsstaffturnoverrate low.

ThegoalsforFalck’sinitiativesinthisfieldare

• toincreasethestaffretentionratebybringingdowntherateofstaffturnover

• to reduce absence caused by sickness and work-related inju-ries

• to increase employee satisfaction• to improve leadership quality

Basedonthesegoals,additionaleffortshavebeenmadetoreducetherateofstaffturnover.

For instance, surveys have been made to identify the reasons for resignations, improve the quality of recruiting procedures, improve how new employees are received, and improve the qualityofleadership.Aspartofthecompany’seffortstore-tainemployees,staffretentiontargetswillbesetfortheindi-vidual business units in 2016.

AbsenceduetoillnessnotonlyaffectswhatFalcksuppliestoits customers, but is also important in relation to individual employees,especiallyregardingeffortstopreventminorinju-ries from developing into long-term illness.

Accordingly, Falck works in a targeted way to bring down sick-nessabsencebyofferingmusculoskeletaltreatmentinanum-berofcountries.Inaddition,theroll-outofFalckDebriefing,aprogramme that supports the ability of our employees to han-dle traumatic events on the job, continues. This programme includestrainingofrescuestaffinsupportingcolleagues,de-briefingbyqualifieddebriefers,andsettingupalocalorgani-sation to handle dramatic and traumatic incidents.

The average rate of sickness absence in 2015 was 3.3% (2014: 3.8%),andthestaffretentionratewas76%(2014:81%).

Occupational health and safety

Falck’s policy for occupational health and safety is aimed at re-ducing physical and mental injury through good management of occupational health and safety and through a transparent allocation of duties and responsibilities while ensuring an ap-propriate provision of training and information.





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Falck believes that a good working environment – one which doesnotexposestafftoariskofoccupationalinjury–isaprerequisite for attracting and retaining highly competent employees.

ThegoalsforFalck’sinitiativesinthisfieldare:

• to reduce the number of occupational injuries and events • to reduce the number of injuries incurred in connection with

Falck’s activities• to be the safest and most reliable service provider• to involve the employees in maintaining high safety and

working environment standards

Inordertostrengthentheframeworkformeetingthesegoals,a Group competence centre has been set up. With a view to leveraging key group competences, business areas with solid experience in developing safe workplaces participate in this centre.

Falck Safety Services provides courses and training in occupa-tional health and safety. There is thus a close correlation be-tween Falck’s own experience as a sustainable workplace and the knowledge and experience that is passed on to our busi-ness partners in both the private and the public sector. Falck Healthcare brings extensive special knowledge and experience from many years of providing preventive and curative services in this business area.

This composition of the competence centre ensures not only thatemployeesacrosstheorganisationbenefitfromtheGroup’s experience from customer activities, but also that Falck is inspired to develop new services for public and private business partners.

Several business units within both Safety Services and Emergen-cyobtainedOHSAS18001certificationsin2015.TheOHSAS18001 standard ensures that units across business areas imple-ment common guidelines and continuously improve occupa-tionalhealthandsafetyefforts.Effortswillcontinuetoobtaincertificationfor,initially,SafetyServicesandforFalck’sactivitiesinindustrialfirefightingandathealthandmedicalclinics.

Theyear2015alsosawacontinualdevelopmentofITsystemsfor accident registration and gathering ideas for improving the work environment across business areas.

Many Falck employees work in ambulance transports and other patient transport services, all of which involve frequent heavy lifting. Over the past few years, Falck’s Nordic organisa-tion has built extensive experience in equipment and training to help reduce the risk of back injuries as a result of heavy lift-ing.In2015,effortscontinuedtoleveragethisexperienceinrelation to, among other things, physical training, instruction in transfer techniques – also through e-learning programmes, a management focus on the topic and the use of assistive de-vices.

Inrelationtopatienttransport,thesafetyofemployeesandpatients is another focus area. Accordingly, a ‘drive safely’ training programme has been set up for employees and is currently being implemented across a number of European countries. The project also includes the installation of cameras recordingcriticaltrafficsituationsforuseineducationalandtraining activities.

Falck’s total recordable injuries frequency was 16.4 per million workinghoursin2015(2014:21.6)acrosstheGroup.

Falck is highly aware that an employer’s responsibility for en-suringthatemployeesareofferedsoundworkingconditionswith respect to health and safety also applies when employees are travelling or transferred abroad. By regularly analysing health and safety in all countries and geographies, Falck Global Assistance has accumulated extensive knowledge and experi-encethatisalsoofferedtoawiderangeofinternationalbusi-nesses with employees who travel or are stationed abroad.

Based on the special knowledge built up in Falck Global As-sistance, a training programme was initiated in 2015 related to and for travelling and expatriate employees.

Environment, including climate

Falck’sactivitiesarelocatedatmanydifferentsitesworldwide,including Falck stations and training centres. Falck also has a large number of vehicles.

For this reason, the Group is committed to taking steps to pro-tect the environment.

Falck is obligated to operate in an environmentally responsible mannerandtoreducetheharmfuleffectsitsactivitiesmayhave on the local community including the climate impact.





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Environmental responsibility and sustainable conduct are thus part of the job for Falck’s managers.


• aiming to reduce our power, water and heating consumption• aiming to reduce our fuel consumption as well as our air pol-

lution and wastewater discharge• aiming to use environmentally friendly technologies, work

processes, substances and materials in connection with new purchases and restructuring of existing work processes

• aiming for a high rate of recycling and the lowest possible environmental impact in connection with waste handling

Inconnectionwiththesafedrivingproject,employeesarealsotaught how ‘green driving’ can reduce fuel consumption. Al-ready up and running in the Nordic countries, the programme is being rolled out in a number of other European countries; the goal is to implement it in full or in part in 2016 in countries where,forenvironmentalandeconomicreasons,thefleetofvehiclesnecessitatesfocusedeffortstobringdownfuelcon-sumption.

The project was introduced in Slovakia in 2015, and fuel con-sumption has thus far been cut by an estimated 8%. Concur-rentlywiththe‘DriveGreen’project,anITsystemforfleetmanagement has been implemented that enables comparison of vehicle fuel consumption data across countries.

On the basis of data from this system and other input, busi-ness units across the Emergency division have switched to other types of vehicles. The switch to lower-powered vehicles is expected to result in a substantial reduction in fuel con-sumption without causing longer response times, longer wait-ing times or other service cuts for patients and citizens.

Moreover, when ambulances are replaced, we continue to focus on replacing them with more environmentally friendly vehicles.InCopenhagen,forexample,naturalgas-poweredvehicles were introduced in 2015.

InitsEmergencybusinessoperations,Falckdrove189millionkilometres(2014:173millionkilometres)withanaveragefuelconsumptionofroughly7km/l(2014:6km/l).

Itshouldbenotedthatemergencyresponseshaveanadverseimpact on the average level of fuel economy, and that the con-solidatedfigureisaffectedbysubstantialregionaldifferences

with respect to the required size of emergency response ve-hicles and the weighting within the Group of each country of operation.

Business ethics

Falckdefinesbusinessethicsasthebroadapproachtohowthe Group’s values are translated into day-to-day activities in the organisation or, in other words, the ethical approach re-flectedintheday-to-dayresponsibilitiesofmanagementandemployees.

Falck’s ethical approach is rooted in the culture and collabora-tionamongfirefightersandambulancestaffatthesceneofanincident,healthcarestaffhelpingpatients,rescueofficersproviding roadside assistance and helping drivers continue on their journey, and instructors teaching people how to look after themselves and help others in a crisis situation. When Falck sets up new entities in new geographical areas, whether throughgreenfieldinvestmentsoracquisitions,introductionprogrammes are put in place to ensure that Falck’s corporate culture and ethics are integrated throughout the organisation.

A characteristic feature of the services Falck provides is that theyalldependontheeffortsoftheindividualstaffmembers,who must be able to rely on each other and assume that eve-ryone will do exactly as agreed and as they are trained to do. For this reason, Falck does not compromise on the training of itsstafforthesafetyproceduresinplacetoprotectstaffandcustomers.

Itisimportantthatstaff,customersandbusinesspartnerscanrely on Falck.

As a natural part of its corporate values, Falck operates a policy of zero tolerance of corruption. From an ethical point of view, corruption is considered to be destructive to personal integrity – and harmful to society.

The roll-out of Falck’s global whistleblower programme, Falck Alert, was completed in 2015. Through Falck Alert, employees can report incidents of non-compliance with Falck’s Code of Conduct, legislation and other guidelines.

Inthatconnection,Falck’sCodeofConductanditsCSRpoli-cieshavebeentranslatedinto25differentlanguagesandup-loaded to Falck Alert’s electronic welcome page.





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Similarly, employees looking to make a report to Falck Alert may do so in their own native language, either by phone or online, and they are guaranteed anonymity.

Society

Ever since Sophus Falck founded his rescue service in 1906, thedesiretomakeadifferenceinlocalcommunitieshasbeendeeply rooted in Falck’s corporate values. Against this back-drop, Falck has always been an integral part of the local devel-opment of the communities we serve.


• to support health, education and welfare by expanding the Group’s activities

• to contribute to economic development and support wel-fare in the world in the long term by investing in new mar-kets

• to contribute to economic development in the areas where Falck has operations

• to increase the awareness of health and safety in order to promote a healthier and safer society

Falck is involved in social projects in many of the countries where Falck has operations with a view to improving the health conditions in those countries, while also assessing and developing its business potential.

The common denominator of these projects is that Falck is an organisation of people helping people.

A wide range of Falck entities donate equipment and assist to develop pre-hospital activities in other countries. Equipment has been donated from Sweden to Mongolia, from Slovakia to Macedonia and from Denmark to Nicaragua – and several Falck countries contributed assistance and support to Nepal in con-nection with the earthquake there in 2015.

Another thing that characterises Falck is its special focus on hiring and setting up traineeships for people who need to gain a foothold in the labour market, including young people with special employment issues and people with disabilities.

Countries that carried out special activities to support labour market integration in 2015 include France, the Netherlands, Denmark, Sweden, the UK, the United States and Slovakia.

However, similar Falck activities are carried out in several other countries.

Inaddition,awiderangeofactivitiesarecarriedouttoin-creaseknowledgeoffirstaidandacutelife-savingeffortsin,for example, Germany, the Netherlands, Poland, Denmark, Sweden, the UK, Slovakia and the United States.

Overthenextfewyears,effortswillbemadetofurthercoor-dinate transnational initiatives with a view to ensuring that the effortsmadedoasmuchgoodaspossible.

Gender distribution in Falck’s Management

The Falck Group strives to ensure diversity in the Group that reflectsthecommunitiesweworkinandthatisalignedwiththe recruitment potential in Falck’s area of business.

The Group aims to provide gender-equal opportunities at all management levels. The gender distribution in management positions should therefore, over a number of years, come to reflectthegenderdistributionwithintheGroup’sareasofbusiness.

To this end, Falck laid down a policy for this area and launched a number of initiatives in 2013. As an example, it was resolved that the Group wants both genders to be represented when managementstaffisrecruited.ItwasalsoresolvedthatMan-agement will evaluate once a year whether the current gender distribution in the Group can be considered to be natural rela-tivetotherecruitmentbasisforstaffwiththerelevanttypeofskills or educational background.

On the Board of Directors, three of the six members elected by shareholders are women, which meets the Group’s target.

The Group’s two next executive levels – the Management Board and Group Management – include one woman and 30 men. The executive level below these two levels is made up of 16womenand117men.In2016,Falckwillhaveacontinuedfocus on gender composition at management levels across all business areas.





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TheshareholdersofFalckHoldingA/Sareshowninthetablebelow:

Name Ownership

LundbeckfondInvestA/S,Copenhagen 57.36%KIRKBIInvestA/S,Billund 27.73%LiberatioA/S,Copenhagen (ownedbyexecutivemanagement) 10.25%TryghedsGruppen smba, Virum 4.07%Senior executives 0.59%

ThesharecapitalinFalckHoldingA/SisDKK67million(2014:DKK67million),dividedinto66,952,345shareswithanominalvalue of DKK 1 each.

Lundbeckfonden LundbeckfondenistheownerofLundbeckfondInvestA/Swho is the largest shareholder in Falck with 57.4% of the shares. With a net wealth of more than DKK 50 billion and annual grant contribution of DKK 400-500 million, Lundbeck-fonden is one of the largest industrial foundations in Denmark.

Lundbeckfonden, which was established in 1954, is the major-ity shareholder in three large Danish companies: Lundbeck, FalckandALK-Abelló.Inaddition,theFoundationmanagessecurities of about DKK 14 billion and a portfolio of more than 20 life science investments in European and American compa-nies.

The Foundation annually awards DKK 400-500 million to sup-port excellent biomedical research, science communication and science teaching. The aim of the grant activities is to provide a substantial contribution to strengthen the quality and applicability of the total research-based knowledge and experience within biomedicine in Denmark. Focusing primarily on brain health, it is the vision of Lundbeckfonden to create better lives through new knowledge.

Additional information about Lundbeckfonden is available at www.lundbeckfonden.com.

KIRKBITheKIRKBIGroupholds27.7%ofFalck’sshares.KIRKBIisaholding and investment company owned by the Kirk Kris-tiansen family. The company’s strategic activities comprise a 75% interest in the LEGO Group, a 29.9% interest in Merlin Entertainments PLC and investments in sustainable energy. The company’s investments also include substantial long-terminvestmentsincompaniessuchasMatasA/S,MinimaxVikingGmbHandISSA/S,aswellaspropertyinvestmentsinDenmark,Switzerland,GermanyandtheUK.KIRKBIhasalong-terminvestmentprofileandisaresponsibleinvestorpursuinghigh ethical standards.

AdditionalinformationonKIRKBIisavailableat www.kirkbi.com.

Shareholders of FalckHoldingA/S





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BER: SHAREHOLDERS OF FALCK HOLDING A/S

http://www.lundbeckfonden.com

http://www.kirkbi.com

Corporate governance

Falck’s Management monitors corporate governance on a re-gular basis with a view to ensuring that the Group is managed, both internally and externally, in a manner consistent with national and international rules and in line with the corporate mission, and in a manner that matches the expectations of the differentstakeholdergroups,includingtheshareholders.

Corporate governanceAt Falck, corporate governance is considered a natural and crucial element in the achievement of the Group’s goals and strategy.

Although Falck is not a public listed company, the Group com-plies to a great extent with the corporate governance recom-mendations applicable to companies listed on the NASDAQ OMX Copenhagen stock exchange. However, certain recom-mendations are considered mainly to be relevant to compa-nies with a broader ownership.

Board of DirectorsPursuant to Danish legislation, Falck has a two-tier manage-ment system consisting of a Board of Directors and an Execu-tive Management Board. The Board of Directors’ role is to supervise the Group’s activities, development, management and organisation, whereas the Executive Management Board is responsible for the Group’s day-to-day development and operations. The two bodies are independent and do not have overlapping members.

The Board of Directors acts in compliance with applicable leg-islationandmeetsatleastfivetimesayearandasrequiredbyspecial circumstances.

Members of the Board of Directors are elected annually.

TheBoardofDirectorsofFalckHoldingA/Sconsistsof:

Peter Schütze, Chairman Lene Skole, Deputy ChairmanSøren Thorup SørensenLars Frederiksen Karen Tay KohDorthe Mikkelsen

ViatheirrepresentationinFalckA/SandFalckDanmarkA/S,employeesarealsoofferedtheopportunitytoparticipateintheboardmeetingsofFalckHoldingA/S.

Board members elected by the employees who also partici-pateintheboardmeetingsofFalckHoldingA/Sare:

Vagn Flink Møller Pedersen (elected by the employees of Falck A/SandFalckDanmarkA/S)Henrik Villsen Andersen (elected by the employees of Falck A/SandFalckDanmarkA/S)Allan Rensgaard (elected by the employees of Falck Danmark A/S)JanHeineLauvring(electedbytheemployeesofFalckA/S)

Peter Schütze and Lene Skole represent the Lundbeck Founda-tion,andSørenThorupSørensenrepresentsKIRKBI,theprinci-pal shareholders of the Falck Group.

The other board members are independent of the Falck Group and the Group’s shareholders.

In2013,theBoardofDirectorssetatargetfortheshareoffe-male board members, equivalent to at least one or two mem-bers out of the six members elected by the shareholders. This target was reached in 2014 and maintained in 2015.

Audit CommitteeTheAuditCommitteemonitorstheGroup’sfinancialreport-ing process, accounting policies, statutory auditing of the an-nualreportandtheeffectivenessofinternalcontrolandriskmanagementsystemsonbehalfoftheBoardofDirectors.Inaddition, the Committee makes recommendations on these is-sues to the Board of Directors and follows up, on behalf of the Board of Directors, on the implementation of initiatives taken by the Executive Management Board. The Committee receives informationfromanumberofheadofficedepartmentsandfrom the company’s auditors.

Audit Committee members are Søren Thorup Sørensen (chair-man),LeneSkoleandLarsFrederiksen,allofwhomareelectedby the Board of Directors. Also attending this committee’s meetings are the Executive Management Board, the Chief Fi-nancialOfficerandthecompany’sauditor.TheAuditCommit-tee meets at least three times a year.

Executive Management BoardThe Executive Management Board is responsible for the day-to-day development and operation of Falck with a primary fo-cusondevelopingandimplementingstrategiesandsignificantinitiatives approved by the Board of Directors. Moreover, the Executive Management Board is responsible for ensuring that the Board of Directors is informed about all material matters.





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BER: CORPORATE GOVERNANCE

The Executive Management Board consists of President and CEO Allan Søgaard Larsen and Deputy CEO Morten Reignald Pedersen.

Employee investmentInordertoattractandretaintheGroup’smanagementcom-petencies, the remuneration paid to members of the Execu-tive Management Board and senior management employees reflectstheworktheydo,thevaluetheycreateandwhattheirpeers in comparable companies receive. To ensure that the interests of the Group’s Management and the shareholders coincide, a number of senior management employees have beenofferedtheopportunitytopurchasewarrantsatmarketvalue. Warrants have been subscribed for, entitling holders to subscribeforatotalof965,572sharesinFalckHoldingA/S,equivalentto1.44%ofthesharecapital.Inaddition,agroupof senior executives, excluding the members of the Executive Management Board, hold 0.59% of the shares of Falck Holding A/S.

The members of the Executive Management Board jointly hold 10.25%ofthesharesofFalckHoldingA/Saswellaswarrantsentitling them to subscribe for an additional 6.64% of the sharesofFalckHoldingA/S.

Risk managementAt Falck, risk management is an integral element in all manage-ment decisions and measures, the purpose being to protect the existing business and help achieve future strategic targets.

Falck acknowledges its responsibility towards customers, em-ployees, authorities, owners and other key stakeholders. To ensure the highest possible degree of predictability and trans-parency in the Group’s decisions in an increasingly dynamic and global market, Falck maintains strict risk management policies forallfourbusinessareas.Individualoperatingentitymanag-ers are the direct owners of risks and are directly responsible for the measures taken to mitigate these risks.

All the Group’s operating companies must adhere to the risk managementprinciplesdefinedfortheGroup,whichincludea requirement to continuously identify, evaluate and mitigate risks. The Group reports three times a year on changes in the risksituationandtheefficiencyofmeasuresaimedatmiti-gatingthecompany’smainrisks.Inconnectionwiththisriskreporting, key risks are consolidated and the management of eachbusinessareaassessestheefficiencyandsufficiencyofthe risk-mitigating measures applied.

The Executive Management Board reviews the Group’s risk areas and the mitigating measures together with the business area managers on a regular basis, and their main conclusions are submitted to the Audit Committee and the Board of Direc-tors once a year.

The Group Risk Management function facilitates regular re-porting from all operating entities and is responsible for con-solidating and reviewing key risks together with business area managers and the Executive Management Board.

Internal controlAt Group level, Falck requires that business procedures and internal controls are laid down and complied with by all com-panies in the Falck Group, primarily in order to ensure that the reporting received from the Group’s companies provides a true and fair view and can be used as a management and control tool. Business procedures and internal controls include standardised requirements with respect to segregation of duties, authorisations and powers, approval procedures and documentation requirements.

Basedonanassessmentofrisk,theGroup’sfinancefunctionpays routine visits to the companies in the Group to ensure compliance with the requirements laid down for business pro-ceduresandinternalcontrols.Inconnectionwiththesevisits,an assessment is also made as to whether the companies have established the necessary processes and internal controls relating to their activities to ensure that the risk of intentional or unintentional mistakes is minimised. Reports on these visits are made to the local management, to business area manag-ers and to Group management. The Group’s Audit Committee receives an annual report on the visits made and any special focus areas, as well as a risk-based list of companies to which visits are planned during the next period.

Falck’sGroupfinancefunctionhasdefinedanumberofrequirements applying to the monthly reporting from the companies of the Group, including reporting of income state-ments,balancesheetsandcashflowstatements.Inaddition,furtherspecifications,analysisandcommentsonthereportingpackage submitted must be provided. Reporting from group companies is consolidated on a monthly basis, and individual line items, performance compared with prior periods and outlook assessments are reviewed and analysed. The analysis provided is at three levels – company, business area and Group – to check compliance with Group accounting policies and en-surethatthefinancialreportingreflectschangesandtrendsinthe Group’s activities.





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Risk factors

Falck’s business model has a number of inherent character-istics that help reinforce the Group’s general resilience to businessandfinancialrisks.Theseincludeadiverseproductportfolio and a stable demand for those products, a presence in many markets and a broad range of customer segments. Moreover,mostoftheservicesprovidedbyFalckbenefitfroma stable level of demand that is relatively independent of eco-nomicfluctuationsandtypicaldemand-regulatingfactors.

However, the level of activity in Safety Services relies heavily on the development in oil prices. Falling oil prices and uncer-tainty about future price levels directly impact activities in the offshoresector,notablyinrelationtoexplorationactivities.This pushes down demand for the training services provided by Safety Services.

The following sections provide a representative but not ex-haustive review of the Group’s risk exposure divided into busi-nessrisksandfinancialrisksandpresentedinrandomorder.Falck’smanagementestimatesthattheserisksmayaffecttheGroup’sfuturegrowthlevel,activities,financialpositionandearnings.

Business risks

Corporate valuesFalck’s current and future activities are dependent on the val-ues which the Group’s employees have upheld and adhered to ever since Falck was founded. For this reason, it would be a basic threat to Falck’s business if these values no longer ex-isted or were taken for granted.

Inadditiontothebasicvalues,Falckmustbeabletodocu-ment compliance with international and national law, regula-tionsandrelevantcorporategovernancerules.Inadditiontolegal sanctions being levied, any failure to comply could also havetheeffectthatthetrustFalckanditsemployeeshaveearned from public authorities and private and corporate customers, built up over the course of more than a century, would deteriorate.

Outsourcing of public-sector operating activitiesA large percentage of Falck’s activities consist of handling tasks for public authorities such as pre-hospital services and fireservices.Despitethecontinuingdevelopmentofnewbusiness areas focused on non-public contracts, it remains highly important that the public authorities in certain major markets continue to outsource these tasks.

Falck’sdocumentedhighlevelofqualityandcostefficiency,combined with a general pressure on the public budgets and rising demands on the healthcare system, has historically re-sulted in net growth in the volume of public-sector contracts. However, there have been a few tender processes and out-sourcing decisions that did not feature open competition with respect to quality, reliability of supply and costs. Moreover, there are cases where current players receive preferential treatment in terms of contract extension without a tender process or in terms of technical requirements in the tender that makes it impossible for new service providers to bid for the contracts.

However, there is currently access to enough public markets for the assumptions underlying Falck’s long-term business de-velopmentnottobemateriallyaffectedbythisrisk.Itisalsopossible that Falck’s pending complaints within the EU system willhaveapositiveeffectonthemarketsituationovertime.

Quality and operating efficiencyQualityandoperatingefficiencyarekeyfactorsforFalckinconnection with retaining and developing the Group’s activi-ties.

Maintaining the highest standards for quality and reliability of supply have the highest possible priority with Falck, as it is a crucial requirement for access to operating in Falck’s existing key markets and future growth markets. High quality is also a crucial competitive parameter in situations with competitors underbidding Falck in terms of price and corporate customers looking to outsource non-core services.

To ensure that Falck retains the high quality of its operations, itemploysstandardproceduresandprotocolsdefinedtoreduce the risk of errors and unintended events. Moreover, there is currently a great deal of focus on achieving formal accreditationsandcertifications.Thisalsoensuresdocumen-tation of the Group’s correct conduct in connection with the performance of its activities.

Falck’s cost level determines the Group’s competitive power. Factorssuchasstaffcosts,workinghoursregulations,socialsecuritycontributionsandemployeebenefitsmadeavailableto Falck employees may change without Falck having an op-portunity to incorporate these things in the prices charged to customers.Thiscouldpotentiallyaffectprofitabilityandtheprospects of maintaining market share.





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BER: RISK FACTORS

On Falck’s large markets, there is a general understanding amongstaffthatastabledevelopmentoftheGroupbenefitseveryone. Moreover, Falck seeks to ensure that major con-tracts include provisions allowing adjustment of Falck’s prices in the event of unforeseen changes in costs.

Competition Falck thrives in a free market. Falck’s competitiveness sup-ports the existing business and provides a strong basis for continued growth. Falck faces competition in all its business areas and is consequently regularly challenged with respect tomarketshareandprofitability.Thecompetitorsareprimar-ily local and regional service providers in the various business areas.Thereisnosingleorganisationthatoffersthesameproduct portfolio as Falck does.

Falck often experiences situations with an aggressive com-petitor seeking to challenge its market position. Falck sees competition as a healthy driver of business development and does not lower its quality or earnings requirements just to maintain its market share.

Inadditiontocompetitioninestablishedmarkets,Falckcon-tinuously monitors whether threats arise against its existing business model within its various business areas, for example through the emergence of new platforms for delivery and use of Falck’s services. Other industries have seen business-break-ing technologies in recent years: for example, in situations where the creation of value has moved from the original play-ers to other parts of the value chain. Falck continually moni-tors potential new technologies and business models and, if feasible, will be able to introduce new delivery platforms for itsservicesforthebenefitofbothcustomersandsocietyingeneral.

Acquisitions and organic growthFalck’s strategy includes acquisitions for access to markets and competencies, although the main focus is on investing in organic growth. The individual business areas are responsible for identifying and assessing suitable acquisition targets, and they also evaluate development initiatives in the existing business. The analysis and assessment of acquisitions and the start-upofnewactivitiesarecarriedoutaccordingtodefinedguidelines. The Executive Management Board approves all major investments on the basis of analyses made, including an assessment of risks and coherence with the Group’s strategy.

Failed acquisitions or wrong investments may result in loss of the capital invested and potentially restrict future stra-tegic opportunities. For this reason, extensive work is done to analyse and value new acquisition targets, integrate new acquisitions and assess whether new investments reach the milestones set. Moreover, each of Falck’s investments is rela-tively limited in size, which means that the failure of a single investmentwouldhavelimitedfinancialconsequences.

Management and organisationFalck seeks to allow its business areas and operating com-panies to run their businesses independently on the basis of market conditions in the various geographies. Decentralised entrepreneurship, operational experience and credible deci-sion-making competencies are deemed to be key factors to fulfillingtheGroup’sstrategy.Thatmakesgreatdemandsonboth local management and the centralised functions.

Inrecentyears,Falckhasinvestedagreatdealinthemanage-mentsofoperatingcompaniesandbusinessareasalike.Itscorporate values and strategy have enabled Falck to attract highly competent managers and specialists. The ability to at-tract the best management and specialist resources, also in the future, is a fundamental requirement for retaining and developing the Group’s existing business and realising its growth strategy.

Inmanymarkets,employeeswithspecialistmedicalandhealthcare skills, education and experience are a resource in short supply. Falck’s management regularly evaluates how best to attract and retain the desired resources in each mar-ket. Falck believes that it is of value to all parties if Falck is a good and attractive employer and if Falck can help ensure, inadialoguewithrelevantcustomers,thattherightstaffisavailable now and in future.

Business-supporting ITITandcommunicationssystemsprovidesupporttotheGroup’sbusinessandthusalsoaidFalckinitsabilitytofulfilitspromises to customers and society in general.

All critical applications are mapped and well described, and thoroughly tested contingency plans exist for possible break-downs.

ThenormallifecycleforITplatformsandincreasedrequire-ments both from Falck’s business units and customers have





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ledtoseveralmajorconcurrentITprojectsintheGroup.Falckcomplies with generally recognised best practices for the managementofmajorITprojectsandhasupgradeditsbusi-ness-supportingITorganisationwithaviewtomitigatingriskduring the development and commissioning of these systems.

Financial risk

Capital structure InadditiontoequitytotallingDKK5,535million,theGroupisfunded by a syndicated loan raised in the parent company and inFalckA/SandFalckDanmarkA/S.InthemonthofSeptem-ber, the shareholders provided a shareholder loan of DKK 275 million for the purpose of strengthening the Group’s capital resources.

The loan terms of the syndicated loan include covenants requiringthatcertainfinancialperformanceindicatorsaremet. All loan terms were honoured in 2015. The outstanding debt at 31 December 2015 was DKK 6,165 million. Through regular instalments payable on the syndicated loan from 2016 to 2018, the debt will be reduced to DKK 4,900 million, which must be repaid in full in 2019.

Interest rate and foreign exchange riskTheinterestrateriskisaffectedbytheGroup’sgeneralfi-nancing structure. Due to the current low level of interest rates and with a view to limiting the risk of increasing interest expenses, the Group’s Executive Management Board and the Board of Directors have decided to set up interest rate swaps until2019,sothat70-80%oftheexpectedfinancingisatfixedratesofinterest.Therestofthefinancingisprimarilybased on short-term interest rates.

The exchange rate exposure of the Group’s transactions is limited by the fact that subsidiaries outside Denmark largely operateintheirlocalcurrency,totheeffectthatrevenuesand most of the expenses of each subsidiary are in the same currency. The main exchange rate exposure faced by the GrouprelatestothetranslationintoDanishkronerofthefi-nancialresults,cashflowsandequityofsubsidiaries.

ForamoredetaileddescriptionoftheGroup’sfinancialrisks,see note 28.





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Management review




Content

Notes to the consolidated financial statementsContents of the consolidated financialstatements

Notes to the balance sheet

13. Intangible assets 56

14. Property, plant and equipment 58

15. Investments in associates and joint ventures 59

16. Trade receivables 59

17. Securities 60

18. Equity, treasury shares, non-controlling

interests and dividends 60

19. Deferred tax 61

20. Liability for acquisitions of operations

and non-controlling interests 62

21. Provisions 63

22. Loans 64

23. Other payables 65

Notes to the cash flow statement

24. Net interest paid 65

25. Investments in subsidiaries, non-

controlling interests and operations 66

26. Movements relating to non-

controlling interests 68

Supplementary notes

27. Contingent liabilities, contractual

obligations and collateral security 69

28. Financial instruments 70

29. Related parties 76

30. Events after the balance sheet date 77

31. Accounting estimates and judgments 77

32. Accounting policies 78

Financial statements

Income statement 43

Statement of comprehensive income 44

Cash flow statement 45

Balance sheet 46

Equity statement 48

Notes to the financial statements

1. Segment information 49

Notes to the income statement

2. Revenue 52

3. Other operating income 52

4. Fees to auditors appointed at

the annual general meeting 53

5. Staff costs 53

6. Share-based payment 54

7. Impairment, amortisation and depreciation 54

8. Income after tax from associates 54

9. Impairment and amortisation of intangible

assets and costs from business combinations 54

10. Financial income 55

11. Financial expenses 55

12. Income taxes 55

Management review




ContentKON: INDHOLDSFORTEGNELSE

Notes to the consolidated financial statementsIncomestatementfor the year ended 31 December

Note DKK million 2015 2014 2 Revenue 15,227 13,952 3 Other operating income 128 91 Cost of sales and external assistance -1,820 -1,758 4 Other external costs -3,173 -2,794 5 Staffcosts -8,879 -7,953 7 Impairment,amortisationanddepreciation -1,779 -933 8 Incomeaftertaxfromassociates,primaryactivities 1 1

OPERATING PROFIT -295 606

Analysed as follows: Operating profit before costs, impairment and amortisation from business combinations 971 1,139 9 Impairmentandamortisationofintangibleassetsandcostsfrombusinesscombinations -1,266 -533

OPERATING PROFIT -295 606 8 Incomeaftertaxfromassociates,secondaryactivities -2 -8 10 Financial income 75 37 11 Financial expenses -301 -310

RESULT BEFORE TAX -523 325 12 Incometaxes -63 -107

RESULT FOR THE YEAR -586 218

ALLOCATION: FalckHoldingA/S -615 200 Non-controlling interests 29 18

TOTAL -586 218





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KON: INCOME STATEMENT

Statement of comprehensive income for the year ended 31 December

Note DKK million 2015 2014 Result for the year -586 218

Items that cannot be reclassified to the income statement Actuarial adjustment of pension provisions 1 -2

1 -2

Items that can be reclassified to the income statement Foreignexchangedifferences -101 43 Value adjustment of currency hedging instruments -3 -13 Value adjustment of interest hedging instruments -1 -50 Adjustmentforhyperinflation -4 18 12 Tax on other comprehensive income -26 2

-135 -

Other comprehensive income after tax -134 -2

TOTAL COMPREHENSIVE INCOME -720 216

ALLOCATION: FalckHoldingA/S -749 198 Non-controlling interests 29 18

TOTAL -720 216





Content


KON: COMPREHENSIVE INCOME

Cashflowstatementfor the year ended 31 December

Note DKK million 2015 2014 Total revenue 15,356 14,043 Total costs -15,651 -13,437

Operating profit -295 606 7 Impairment,amortisationanddepreciation 1,779 933 Costs from business combinations etc. 15 39

Result before financials, impairment, amortisation and depreciation 1,499 1,578 Reversalofprofit/lossondivestmentofnon-currentassets -37 -34 Change in operating assets -245 -200 Movements relating to associates - 15 Change in operating payables -5 73 Change in provisions -28 11

Cash flow from operating activities before financials and tax 1,184 1,443 24 Net interest paid -211 -265 12 Incometaxpaid -145 -269

CASH FLOWS FROM OPERATING ACTIVITIES 828 909

25 Investmentsinsubsidiaries,non-controllinginterestsandoperations -262 -718 Investmentsinassociates -4 - Cashflowsfromhedgingofnetinvestments -58 31 Divestment of subsidiaries, non-controlling interests and operations - -7 Financial assets, other receivables - -19 13 Investmentsinintangibleassets -154 -131 14 Investmentsinproperty,plantandequipment -660 -475 Sale of property, plant and equipment 130 100

CASH FLOW FROM INVESTING ACTIVITIES -1,008 -1,219

Movements relating to shareholders -228 22 26 Movements relating to non-controlling interests -26 932 Interest-bearingdebtraised 796 346 Repayment of interest-bearing debt -684 -893

CASH FLOWS FROM FINANCING ACTIVITIES -142 407

Change in cash and cash equivalents -322 97

Cash and cash equivalents at beginning of year 1,015 905 Foreignexchangedifferencesrelatingtocashandcashequivalents -56 13

17 CASH AND CASH EQUIVALENTS AT YEAR-END 637 1,015





Content


KON: CASH FLOW

Balance sheet as at 31 December

Note DKK million 2015 2014 Assets

Goodwill 10,038 10,516 Intangibleassetsfromacquisitions 1,655 1,951 Other intangible assets 389 322

13 TOTAL INTANGIBLE ASSETS 12,082 12,789

Land and buildings 650 687 Leasehold improvements 129 86 Fixturesandfittings,toolsandequipment 1,451 1,218

14 TOTAL PROPERTY, PLANT AND EQUIPMENT 2,230 1,991

15 Investmentsinassociatesandjointventures 52 78 Receivables from associates 21 72 Other receivables 63 54 19 Deferred tax assets 161 63

TOTAL FINANCIAL ASSETS 297 267

TOTAL NON-CURRENT ASSETS 14,609 15,047

Inventories 108 86

16 Trade receivables 2,401 2,008 Receivables from associates 41 52 Incometaxreceivable 39 33 Other receivables 216 191 Prepayments 173 167 17 Securities 115 94 Cash 637 1,015

3,622 3,560

TOTAL CURRENT ASSETS 3,730 3,646

TOTAL ASSETS 18,339 18,693





Content


KON: BALANCE


Note DKK million 2015 2014

Equity and liabilities

Share capital 67 67 Hedging reserve -68 -65 Currency translation reserve -209 -77 Retained earnings 5,745 6,311

EQUITY ATTRIBUTABLE TO PARENT COMPANY 5,535 6,236

Non-controlling interests 398 371

18 TOTAL EQUITY 5,933 6,607

20 Liability for acquisitions of operations and non-controlling interests 827 958 19 Deferred tax 539 549 21 Provisions 44 59 Employee obligations 24 25 22 Loans 6,494 5,997

TOTAL NON-CURRENT LIABILITIES 7,928 7,588

22 Loans 623 789 20 Liability for acquisitions of operations and non-controlling interests 110 202 21 Provisions 94 35 Trade payables 857 757 Payables to associates 15 15 Incometaxes 106 42 23 Other payables 1,163 1,058 Prepayments from customers 1,510 1,600

TOTAL CURRENT LIABILITIES 4,478 4,498

TOTAL EQUITY AND LIABILITIES 18,339 18,693





Content


Equity statement

Currency Non- Share Hedging translation Retained controlling 2015 DKK million capital reserve reserve earnings Total interests Equity

Equity at 1 January 2015 67 -65 -77 6,311 6,236 371 6,607

Equity movements in 2015 Foreignexchangedifferences -101 -101 -101Value adjustment of currency hedging instruments -3 -3 -3 Value adjustment of interest hedging instruments -1 -1 -1 Actuarial adjustment of pension provisions 1 1 1 Adjustmentforhyperinflation -4 -4 -4Tax on other comprehensive income 1 -27 -26 -26

Other comprehensive income - -3 -132 1 -134 - -134 Result for the year -615 -615 29 -586

Total comprehensive income - -3 -132 -614 -749 29 -720 Change in non-controlling interests’ ownership share -6 -6 28 22 Purchase and sale of treasury shares, warrants, etc. -3 -3 -3 Adjustment of liability for acquisition of non-controlling interests relating to acquisitions after 1 January 2010 282 282 282 Dividend -225 -225 -30 -255

Total transactions with owners - - - 48 48 -2 46

Total equity movements in 2015 - -3 -132 -566 -701 27 -674

TOTAL EQUITY AT 31 DECEMBER 2015 67 -68 -209 5,745 5,535 398 5,933

2014 DKK million

Equity at 1 January 2014 67 -17 -125 5,468 5,393 62 5,455

Equity movements in 2014 Foreignexchangedifferences 43 43 43Value adjustment of currency hedging instruments -13 -13 -13 Value adjustment of interest hedging instruments -50 -50 -50 Actuarial adjustment of pension provisions -2 -2 -2 Adjustmentforhyperinflation 18 18 18Tax on other comprehensive income 15 -13 2 2

Other comprehensive income - -48 48 -2 -2 - -2 Result for the year 200 200 18 218

Total comprehensive income - -48 48 198 198 18 216Additions on acquisitions 15 15 Change in non-controlling interests’ ownership share 712 712 291 1,003 Purchase and sale of treasury shares, warrants, etc. 22 22 22 Adjustment of liability for acquisition of non-controlling interests relating to acquisitions after 1 January 2010 -89 -89 -89 Dividend -15 -15

Total transactions with owners - - - 645 645 291 936

Total equity movements in 2014 - -48 48 843 843 309 1,152

TOTAL EQUITY AT 31 DECEMBER 2014 67 -65 -77 6,311 6,236 371 6,607





Content


KON: EQUITY STATEMENT

Business areasFalck’s reporting segments are its four business areas, Emer-gency, Assistance, Healthcare and Safety Services, which provide various services.

EmergencyFalck is the global leader in ambulance services and patient transport. Falck provides ambulance services to people in 22countriesonfivecontinentsinclosecollaborationwiththe authorities. Falck operates more than 2,500 ambulances withambulanceofficerstreatingsickorinjuredpeopleeveryyear.Incollaborationwiththeauthorities,Falckprovidesalarge number of other pre-hospital services using medical and healthcare clinics, doctor’s cars, paramedic cars and medical helicopters.

Falckisalsotheworld’slargestinternationalfireserviceproviderwithactivitiesin19countries.InDenmark,Falckprovidesfirefightingandfire-preventionservicesfor63ofthecountry’s98municipalities.Initsothercountriesofop-eration,Falckisactiveinindustrialfireservices,firetrainingandfireconsultingforbothpublicandindustrialcustomers.

AssistanceFalck’s Assistance services are concentrated in the four Nordiccountries(Denmark,Finland,Norway,Sweden)andEstonia and Lithuania. The services provide people with the greatest possible safety and security, by providing advice, prevention, or fast and competent assistance when acci-dents happen. The services are often subscription-based and especially provide help to people with their cars and homes. As an example, Falck helps members whose car has broken down, or if they are involved in an accident: in most cases, Falckstaffcanrepairthecaronthespot.AndFalckhelpshomeowners with everything from water in the basement to snow on the roof or burglars who pay an uninvited visit. Also, private individuals, businesses and public authorities can all make use of Falck’s Assistance services in situations involving buildings, health, travel and more.

HealthcareFalck Healthcare is Scandinavia’s leading provider of em-ployee healthcare services, focusing on three primary areas: on-the-jobhealth,healthcarestaffingservicesandpublichealthcare and employment partnerships. Under this busi-ness area, Falck helps keep employees and citizens healthy andabletofunction.Animportantpartoftheeffortsconsists of preventing illness, stress and attrition. The goal is to ensure that each individual enjoys the greatest possible degreeofwell-beingatworkandathome.Inthisway,Falckalso helps employers reduce costs related to sickness. More-over, the public sector saves on social security costs, and insurance and pension providers achieve lower payment of compensation related to occupational injuries and incapacity for work.

Safety ServicesFalck is the leading provider of rescue and safety train-ing and other safety services. Falck mainly provides these servicestotheoffshoreoilandgasindustry,themaritimesector and the wind energy industry, but the aviation and chemical industries and the armed forces also make us of these services. Falck provides rescue and safety training in 19 countries, training more than 300,000 participants at 37 training centres. At these centres, people are trained in how topreventandfightfires,andtheyaretaughthowtoreactcorrectly – also under extreme conditions – if accidents do occur.

The accounting policies of all business areas are as described intheaccountingpolicynotetothefinancialstatements.

The performance of the business areas is evaluated on thebasisofoperatingprofitbeforecosts,impairmentandamortisation from business combinations. Revenue and other transactions within and between business areas are accounted for as if they had taken place with third parties in accordance with Falck’s rules on transfer pricing and internal settlement.

Note

1 Segment information

Notestotheconsolidatedfinancialstatements





Content


KON: NOTES


Note DKK million

1 Segment information (continued)

Elimination and non- Safety allocated Business areas 2015 Emergency (2) Assistance Healthcare Services items Total KEY RATIOS EBITAmargin(%)(1) 5.6 9.2 5.8 1.3 6.4

INCOME STATEMENT Revenue 9,340 3,162 2,452 1,241 -968 15,227 Operating profit before impairment, amortisation and depreciation 851 383 164 86 1,484 Impairment,amortisationanddepreciation -595 -237 -74 -873 -1,779

Operating profit 256 146 90 -787 -295

Analysed as follows: Operating profit before costs, impairment and amortisation from business combinations 525 290 141 15 971 Impairmentandamortisationof intangible assets and costs from business combinations -269 -144 -51 -802 -1,266

Operating profit 256 146 90 -787 -295 Financials etc. -228 -228

Result before tax -523 Incometaxes -63 -63

Result for the year -586

BALANCE SHEET Total assets 14,596 6,619 2,371 1,448 -6,695 18,339 Net investments in intangible assets, property, plant and equipment 393 168 51 72 - 684

(1) Operatingprofitbeforecosts,impairmentandamortisationfrombusinesscombinationsasapercentageofrevenue.(2) TheEmergencybusinessincludesoperationsinVenezuela,whichisdefinedasahyperinflationaryeconomy.Therevenueand

operatingprofitstatedabovethereforeincludeapositiveadjustmentforhyperinflationofDKK16millionandDKK0millionrespectively.TheeffectonresultfortheyearwasnegativeintheamountofDKK6million.





Content



Note DKK million


Elimination and non- Safety allocated Business areas 2014 Emergency (2) Assistance Healthcare Services items Total KEY RATIOS EBITAmargin(%)(1) 6.4 10.2 7.2 10.8 8.2

INCOME STATEMENT Revenue 8,688 3,012 1,829 1,366 -943 13,952 Operating profit before impairment, amortisation and depreciation 817 379 139 204 1,539 Impairment,amortisationanddepreciation -535 -217 -55 -126 -933

Operating profit 282 162 84 78 606

Analysed as follows: Operating profit before costs, impairment and amortisation from business combinations 552 308 132 147 1,139 Impairmentandamortisationof intangible assets and costs from business combinations -270 -146 -48 -69 -533

Operating profit 282 162 84 78 606 Financials etc. -281 -281

Result before tax 325 325 Incometaxes -107 -107

Result for the year 218 218

BALANCE SHEET Total assets 14,089 6,717 2,336 2,125 -6,574 18,693 Net investments in intangible assets, property, plant and equipment 251 116 38 101 - 506

(1) Operatingprofitbeforecosts,impairmentandamortisationfrombusinesscombinationsasapercentageofrevenue.(2) TheEmergencybusinessincludesoperationsinVenezuela,whichisdefinedasahyperinflationaryeconomy.Therevenueand

operatingprofitstatedabovethereforeincludeapositiveadjustmentforhyperinflationofDKK40millionandDKK6millionrespectively.TheeffectonresultfortheyearwasnegativeintheamountofDKK11million.





Content





Non-current Non-current assets assets excluding excluding deferred deferred Geographical breakdown Revenue tax assets Revenue tax assets Denmark 6,169 9,440 6,113 9,774 Nordic region 2,895 1,053 2,401 1,130 Europe 2,547 1,623 2,190 1,619 North America 2,365 1,490 1,953 1,287 Latin America 856 569 930 757 Rest of the world 395 273 365 417

Total 15,227 14,448 13,952 14,984

The breakdown of revenue is based on customers’ country of residence. No single customer accounts for 10% or more of revenue.

The breakdown of assets is based on physical location.

The Nordic region comprises the following countries:Finland, Norway and Sweden.

Europe comprises the following countries:Belgium,theCzechRepublic,Estonia,France,Germany,Italy,Lithuania,theNetherlands,Poland,Portugal,Romania,Slovakia,Spain,Switzerland, Turkey and the United Kingdom.

North America comprises the following countries:Canada, United States.

Latin America comprises the following countries:Brazil,Chile,Colombia,Ecuador,ElSalvador,Mexico,Panama,Trinidad&Tobago,UruguayandVenezuela.

The rest of the world comprises the following countries:Azerbaijan,Australia,China,India,Kazakhstan,Malaysia,Nigeria,PapuaNewGuinea,Qatar,Singapore,Thailand,UnitedArabEmira-tes and Vietnam.

Inter-segmenttransactionsaremadeonanarm’slengthbasis.


2 Revenue

Rendering of services 15,119 13,816 Sale of goods 108 136

Total revenue 15,227 13,952

3 Other operating income

Gain on sales of assets 65 44 Other operating income 63 47

Total other operating income 128 91

Other operating income relates mainly to rent from premises and activities of a secondary nature.





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KON: SIDE 52



4 Fees to auditors appointed at the annual general meeting

Statutory audit -11 -10 Tax advisory services -2 -1 Other services -1 -3

Total fees to Deloitte -14 -14

5 Staff costs

Salaries and wages to employees -7,199 -6,437 Remuneration to the Executive Management Board -16 -11 Remuneration to the Board of Directors -4 -5

Total salaries and remuneration -7,219 -6,453

Defined-contributionpensionplans -409 -341Other social security costs -766 -687 Otherstaffcosts -485 -472

Total other staff costs -1,660 -1,500

Total staff costs -8,879 -7,953

Permanent employees at 31 December 29,195 26,286

Other employees at 31 December 9,210 7,944

Numberofemployees(full-timeequivalents) 27,024 24,638

RemunerationtotheExecutiveManagementBoardincludesbothafixedsalaryandvariableremuneration.ThevariableremunerationisfixedonthebasisofanassessmentoftheGroup’sperformance. The members of the Executive Management Board and the Board of Directors do not receive contributions to pension plans.

The service contracts of the members of the Executive Management Board include severance periods which, in the case of resignation by an executive, are 6 months and, in the case of termi-nation by the company, are 12 months.

The Group contributes to pension plans which cover employees in various companies of the Group.Thepensionplansaretypicallydefined-contributionplans.TheGrouphasinsignificantdefined-benefitplansinNorwayandtheNetherlands.ActuarialadjustmentsoftheseplansamountedtoDKK-1millionin2015(2014:DKK-2million)ofwhichthefairvalueofpensionliabilities and pension assets at year-end 2015 amounted to DKK 23 million and DKK 21 million respectively. The net liability of DKK 2 million is recognised in other employee obligations.

Warrant programme, Executive Management Board Number of warrants at 1 January 4,443,120 4,443,120 Grant of new warrants - -

Number of warrants at 31 December 4,443,120 4,443,120

At a meeting of the Board of Directors held on 15 March 2011, the Board passed a resolution to establish a warrant programme for the Executive Management Board.The warrant programme comprises 4,443,120 warrants.

EachwarrantentitlestheholdertosubscribeforoneshareinFalckHoldingA/SwithanominalvalueofDKK1.00.Thewarrantsareexercisable in the period 2019-2021 at between DKK 171 and DKK 209 per share. The warrants issued were acquired at market value with no conditions attached. The members of the Executive Management Board do not participate in the new warrant programme for executives of the Group that is described in note 6.





Content


KON: SIDE 53


Note DKK million

6 Share-based payment

At the annual general meeting held on 26 April 2012, the Board of Directors was authorised to establish a new warrant programme. At a meeting of the Board of Directors held on 25 June 2014, the Board passed a resolution to establish a new warrant programme for executive employees excluding the Executive Management Board.

The warrant programme comprises 965,572 warrants held by 21 employees. Each warrant entitles the holder to subscribe for one shareinFalckHoldingA/SwithanominalvalueofDKK1.00.Thewarrantsareexercisableinthreetranchesin2021,2023and2025at a price based on a share price of DKK 102 plus 8% per year. Dividends in the period between issuance and exercise of the warrants are adjusted in the price.

The exercise of the warrants is subject to the employee being in continuing employment in the Group on the date of exercise. Special provisions are in place concerning sickness and death and in case of change to the Group’s capital structure etc. The Board of Directorsmayatanytimesetanearliertimeforexerciseofthewarrantsthanthesaidfixedtimesofexercise.Iftheemployeedoesnot use the option to exercise, the warrants lapse.

2015 2014

Outstanding warrants at 1 January 1,040,877 - Grant of new warrants 59,006 1,040,877 Buy-back of warrants -134,311 -

Outstanding warrants at 31 December 965,572 1,040,877

Valuation at time of grantingThe employees acquired the warrants issued at market value, equivalent to DKK 5 million, so no cost relating to the warrants is recognised in the income statement. The market value is based on a Black-Scholes option valuation model with adjustment for dilution. The volatility in the cal-culation23.3%(2014:27.2%)isestimatedbasedontheaveragerateofvolatilityforthedefinedpeer group. Zero-coupon interest rates adjusted for the term of the programme have been used asriskfreeinterestrate1.2%(2014:1.3%).Moreover,thecalculationofthemarketvaluetakesinto account the non-marketability of the warrants, whereas the employment requirement at the time of exercise is not included.

7 Impairment, amortisation and depreciation

Intangibleassetsfromacquisitions -1,225 -494Other intangible assets -89 -63 Buildings -37 -34 Leasehold improvements -20 -15 Fixturesandfittings,toolsandequipment -408 -327

Total impairment, amortisation and depreciation -1,779 -933

8 Income after tax from associates

Incomeaftertaxfromassociates,primaryactivities 1 1Incomeaftertaxfromassociates,secondaryactivities -2 -8

Income after tax from associates -1 -7

9 Impairment and amortisation of intangible assets and costs from business combinations

Impairmentofgoodwill,property,plantandequipment,etc. -750 -Amortisation of intangible assets from business combinations -504 -494 Costs from business combinations -12 -39

Total impairment and amortisation of intangible assets and costs from business combinations -1,266 -533





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KON: SIDE 54



10 Financial income

Interestfromcash 9 9Interestfromsecuritiesheldtomaturity - 1

Interest from financial assets not measured at fair value through profit or loss 9 10 Foreign exchange gains 54 21 Otherfinancialincome 12 6

Total financial income 75 37

11 Financial expenses

Interestonloans -224 -264Interestelementondiscountedliabilities -14 -17Otherfinancialexpenses -28 -26

Interest on financial liabilities not measured at fair value through profit or loss -266 -307 Foreign exchange losses -35 -3

Total financial expenses -301 -310

12 Income taxes

Current tax -237 -255 Change in deferred tax for the year 160 155 Prior-year adjustments 14 -7

Total income taxes -63 -107 Tax on other comprehensive income -26 2

Total tax -89 -105

Incometaxpaidduringtheyear -145 -269

Breakdown of tax rate: Total income taxes -63 -107

Profitbeforetax -523 325Impairmentofgoodwill 721 -Incomeaftertaxfromassociates 1 7

Tax base for effective tax rate 199 332

Total income taxes as a percentage of profit before tax -12.0% 33.0%Effective tax rate 31.5% 32.3%

Danish tax rate 23.5% 24.5%DifferencesinforeigntaxratesrelativetoDanishrate -2.0% -3.7%Non-deductible costs 4.8% 4.9%Non-taxable income -2.8% -1.0%Non-capitalised tax losses etc. for the year 5.7% 2.9%Utilisation of non-capitalised tax losses - -0.9%Payrolltaxonprofitfortheyear 7.2% 4.9%Other adjustments including adjustments relating to prior years -4.9% 0.7%

Effective tax rate 31.5% 32.3%

Tax on other comprehensive income Taxonforeignexchangedifferences -27 -5Tax on value adjustments relating to currency hedging instruments 1 -5 Tax on value adjustments of interest hedging instruments - 12

Total tax on other comprehensive income -26 2





Content


KON: SIDE 55


Note DKK million

13 Intangible assets

Intangible Other assets from intangible 2015 Goodwill acquisitions assets Total

Cost at 1 January 2015 10,516 3,701 466 14,683 Foreignexchangedifferences 23 29 - 52Additions on acquisitions 247 188 1 436 Additions - - 154 154 Revaluation of put options and earn-outs relating to acquisitions before 1 January 2010 -27 - - -27 Disposalsandreclassifications - -4 -15 -19

Cost at 31 December 10,759 3,914 606 15,279

Impairmentandamortisationat1January2015 - -1,750 -144 -1,894Foreignexchangedifferences - -9 1 -8Amortisation - -504 -89 -593 Impairment -721 - - -721Disposalsandreclassifications - 4 15 19

Impairment and amortisation at 31 December -721 -2,259 -217 -3,197

Carrying amount at 31 December 2015 10,038 1,655 389 12,082

Intangible Other assets from intangible 2014 Goodwill acquisitions assets Total

Cost at 1 January 2014 9,971 3,507 290 13,768 Foreignexchangedifferences 70 30 -2 98Additions on acquisitions 498 164 34 696 Additions - - 131 131 Revaluation of put options and earn-outs relating to acquisitions before 1 January 2010 -22 - - -22 Disposalsandreclassifications -1 - 13 12

Cost at 31 December 10,516 3,701 466 14,683

Impairmentandamortisationat1January2014 - -1,246 -86 -1,332Foreignexchangedifferences - -10 - -10Amortisation - -494 -63 -557 Disposalsandreclassifications - - 5 5

Impairment and amortisation at 31 December - -1,750 -144 -1,894

Carrying amount at 31 December 2014 10,516 1,951 322 12,789

Intangibleassetsfromacquisitionsprimarilyrelatetocustomercontractsandothercustomerrelations.Theacquisitionswereprima-rily made to achieve synergies with existing business areas, to further develop existing markets and to establish a presence on new markets. As a result, a large part of the consideration has been allocated to goodwill.

Other intangible assets are primarily related to software.

Except for goodwill and the Falck trademark in the amount of DKK 514 million, recognised in intangible assets from acquisitions, all intangibleassetsaredeemedtohaveadefinitelife.





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KON: SIDE 56


Note DKK million

13 Intangible assets (continued)

Goodwill impairment testGoodwill has been allocated to the following cash-generating units:

Goodwill

2015 2014

Emergency 5,380 5,161 Assistance 3,006 2,998 Healthcare 1,235 1,228 Safety Services 417 1,129

Total goodwill 10,038 10,516

Goodwillistestedforimpairmentatleastonceayear,andmorefrequentlyifthereareindicationsofimpairment.Inimpairmenttests,thediscountedvaluesofthefuturenetcashflowsofeachofthecash-generatingunits(valueinuse)arecomparedwiththeircarryingamounts.TheimpairmenttestperformedinrespectofSafetyServicesidentifiedanindicationofimpairmentofDKK721million.Noindicationofimpairmentwasidentifiedfortheothercash-generatingunits.

Management has tested goodwill for impairment based on future expectations for the four business areas using the following para-meters and assumptions:

Thefuturenetcashflowsarebasedonthestrategicplanfortheperioduntil2020approvedbytheBoardofDirectors.

Thegrowthratesduringtheterminalperiodhavebeenestimatedat3.5%intheEmergencyBusiness(2014:3.5%)and2.5%intheotherbusinessareas(2014:2.5%).

ThediscountrateforSafetyServiceshasbeensetat11%beforetax(2014:10%)and8%fortheotherbusinessareas(2014:8%).

ThekeyparametersfortheimpairmenttestareperformanceintermsofrevenueandtheEBITAmargin.As capital tied up in net operating assets is generally low in the Group, this parameter does not have any material impact on the impairment test.

Sensitivity analysis has been performed to determine impairment of goodwill in the event of a change in the growth rate during the terminal period and the discount rate. As a consequence of the impairment loss recognised for goodwill, the carrying amount of Safety Services corresponds to the value in use, implying that any negative change in the key assumptions of the impairment test will result in additional impairment losses.

EmergencyTheEmergencyactivitiesprimarilyconsistofambulanceservices,includingtransportationofpatients,andoffirefightingforpublic-andprivate-sectorcustomers,andtheydonotfluctuatemateriallyfromyeartoyear.Emergencyalsoincludestrainingandconsultancy activities for private-sector companies in several countries. Substantial organic growth is anticipated for the Emergency Business in the years ahead, primarily in Europe, North America and Latin America.

AssistanceThe Assistance activities primarily consist of subscriptions for private customers in respect of vehicles and homes, which are stable fromyeartoyear.Inaddition,theAssistanceactivitiescompriseassistanceinconnectionwithhealthandtravel(GlobalAssistance).

HealthcareThe Healthcare activities primarily consist of subscriptions and long-term employee healthcare contracts and are therefore stable from year to year. Substantial organic growth is expected in the Healthcare business in the years ahead.

Safety ServicesTheSafetyServicesactivitiesprimarilyconsistofrescueandsafetycoursesandothersafetyservicesandareaffectedbytheactivitylevel within the oil and gas industry. This industry is relatively cyclical and therefore the discount rate is higher than for the other business areas.

GoodwillrelatedtoSafetyServicesamountstoDKK417million(2014:DKK1,129million)afteranimpairmentlossofDKK721mil-lion.TheimpairmentlossisprimarilyrelatedtothenegativeimpactoncashflowsinSafetyServicesfromthecrisisintheglobaloilandgasindustryinthewakeofthelowlevelofoilprices.Alowernumberofoffshoreemployeesinoilandgascompanieshasresul-ted in fewer employees receiving training at Falck’s training centres. The strategy plan for the period until 2020 predicts continued downwardpressureonearningsfromthedownturninglobaloffshoreoilexploration.Atthesametime,trainingactivitiestargetingother sectors, including the maritime industry and sustainable energy, are expected to grow organically.





Content



Note DKK million

14 Property, plant and equipment

Fixtures, Leasehold fittings, Land and improve- tools and 2015 buildings ments equipment Total

Cost at 1 January 2015 804 125 1,553 2,482 Foreignexchangedifferences -40 -4 -29 -73Additions on acquisitions - 5 159 164 Additions 86 56 518 660 Disposalsandreclassifications -69 - -128 -197

Cost at 31 December 781 182 2,073 3,036

Impairmentanddepreciationat1January2015 -117 -39 -335 -491Foreignexchangedifferences 5 6 36 47Disposalsandreclassifications 18 - 85 103Depreciation -35 -19 -385 -439 Impairment -2 -1 -23 -26

Impairment and depreciation at 31 December -131 -53 -622 -806

Carrying amount at 31 December 2015 650 129 1,451 2,230

of which assets under construction 42 - 7 49 ofwhichassetsheldunderfinanceleases 13 - 265 278

ImpairmentisattributabletothedownturnwithinSafetyServices. Fixtures, Leasehold fittings, Land and improve- tools and 2014 buildings ments equipment Total Cost at 1 January 2014 802 88 1,292 2,182 Foreignexchangedifferences 20 5 67 92Additions on acquisitions - 7 43 50 Additions 34 34 407 475 Disposals on divestments - - -53 -53 Disposalsandreclassifications -52 -9 -203 -264

Cost at 31 December 804 125 1,553 2,482

Impairmentanddepreciationat1January2014 -74 -27 -193 -294Foreignexchangedifferences - -3 -19 -22Disposalsandreclassifications -9 6 162 159Disposals on divestments - - 42 42 Depreciation -34 -15 -327 -376

Impairment and depreciation at 31 December -117 -39 -335 -491

Carrying amount at 31 December 2014 687 86 1,218 1,991

of which assets under construction 23 - 32 55 ofwhichassetsheldunderfinanceleases 15 - 101 116





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KON: SIDE 58



15 Investments in associates and joint ventures

Cost at 1 January 86 87 Foreignexchangedifferences 2 5Addition on acquisitions 5 - Additions 4 18 Disposalsandreclassifications -38 -24

Cost at 31 December 59 86

Share of valuation adjustments at 1 January -8 -1 Shareofprofitaftertax -1 -7Disposalsandreclassifications 2 -

Share of valuation adjustments at 31 December -7 -8

Carrying amount at 31 December 52 78

See ”Legal entities” for a list of associates and joint ventures.

Summary financial information for associates and joint ventures (100%)Revenue 430 507 Profitfortheyear -1 -4Total assets 498 689 Total liabilities 396 547

16 Trade receivables

Total trade receivables 2,401 2,008

Write-downs at 1 January 262 256 Write-downs during the the year 388 286 Realised write-downs during the year -236 -280

Write-downs at 31 December 414 262

The credit quality of receivables that are not overdue and have not been written down is asses-sed based on the Group’s internal credit assessment procedures. They are generally deemed to be of a high quality with a low risk of losses as they are typically minor subscription receivables fromindividualcustomers,andasignificantpartofthereceivablesarefrompublicauthoritiesand other major customers.

However,write-downsofreceivablesareaffectedbythefactthatambulancecompaniesintheUnited States collect payment directly from the patient if the patient does not have health insu-ranceoriscoveredbyapublicinsurancescheme.Thismaybedifficult,especiallyintheeventofemergency responses.

Write-downs are generally recognised in other external costs. However, write-downs of receivab-les from private customers in the United States are recognised in revenue when it is assumed in advance that they cannot be collected.

Write-downs of receivables are based on individual assessments of customers’ ability to pay. Moreover, general write-downs may be made based on experience and the age distribution of receivables from customers.

Receivables overdue but not written down

Due within 1 - 30 days 364 375 Due within 31 - 90 days 247 216 Due within more than 90 days 400 305

Total receivables overdue but not written down 1,011 896





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Note DKK million

17 Securities

DKK115million(2014:DKK94million)oftheGroup’ssecuritiesareheldinaSwedishsubsidiarywhichissubjecttoSwedishinsu-rance regulations and which is therefore subject to solvency requirements.

18 Equity, treasury shares, non-controlling interests and dividends

Capital managementThe Group is generally not subject to any capital requirements other than usual statutory requirements.

TheGroupmonitorsandmanagesitscapitalstructurewithaviewtoensuringthatitcanmeetitsfinancingobligations.Nochangeshave been made to the Group’s management of capital as compared with 2014.

Thesharecapitalisdividedinto66,952,345shares(2014:66,952,345shares)withanominalvalueofDKK1.00each.Thesharesarefully paid up and are not divided into classes.

Thecompanywasfoundedon1April2011asaprivatelimitedcompany(ApS)withasharecapitalofDKK80,000.Thecompanywasconvertedintoapubliclimitedcompany(A/S)on5July2011,andonthatoccasion,itssharecapitalwasincreasedbyDKK67million.

Nominal value Number of shares DKK (thousands) % of share capital Treasury shares 2015 2014 2015 2014 2015 2014

Treasury shares at 1 January - 115,061 - 115 - 0.17 Additions during the year - - - - - - Sold during the year - -115,061 - -115 - -0.17

Treasury shares at 31 December - - - - - -

DividendAdividendofDKK0millionisproposed(2014:DKK225million).

Non-controlling interests Non-controlling Primary interests’ place of ownership Subsidiaries with significant non-controlling interests business Segment interest FalckHealthCareHoldingA/S-sub-group Denmark Healthcare 40.0%





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18 Equity, treasury shares, non-controlling interests and dividends (continued)

ThefinancialinformationsetoutbelowissummedupfortheFalckHealthCareHoldingGroup.The information is stated before eliminations with other companies of the Falck Group.

Revenue 2,001 1,378 Profitbeforefinancials 92 85Profitfortheyear 51 46

Non-controllinginterests’shareofprofitbeforefinancials 37 17Non-controllinginterests’shareofprofitfortheyear 20 7

Non-current assets 1,702 1,693 Current assets 489 443 Non-current liabilities 738 864 Current liabilities 617 535

Net assets 836 737

Non-controlling interests’ share of net assets 334 295

Cashflowfromoperatingactivities 166 145Cashflowfrominvestingactivities -136 -564Cashflowfromfinancingactivities -26 432

Change in cash and cash equivalents 4 13

Dividend paid to the non-controlling interest during the year - -

Inlegalterms,non-controllinginterestshold40.6%ofFalckHealthCareHoldingA/S.Accordingto the Group’s accounting policies, non-controlling interests with put options are deemed to have been redeemed. Accordingly, the ownership interest of non-controlling interests in Falck HealthCareHoldingA/Sforaccountingpurposesis40.0%.

19 Deferred tax

Deferred tax provisions at 1 January 486 591 Foreignexchangedifferences -7 2Net addition on acquisitions and divestments 13 38 Change in deferred tax for the year -123 -134 Change in deferred tax for prior years 9 -11

Deferred tax provisions at 31 December 378 486

Deferred tax assets -161 -63 Deferred tax provision 539 549


Breakdown of deferred tax Intangibleassets 434 496Property, plant and equipment 133 141Current assets 4 1Non-current liabilities and provisions -8 -4Current liabilities -33 -39Tax losses carried forward -130 -83Foreignexchangedifferencesrecognisedinequity 54 19Other -76 -45


ThetaxlossescarriedforwardandnotincludedindeferredtaxassetsamounttoDKK49million(2014:DKK41million).

Deferred tax assets are recognised on the basis of expected future earnings.

The Group does not have a material liability for withholding taxes in connection with potential dividend payments from subsidiaries.





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Notes to the consolidated financial statementsNotestotheconsolidatedfinancialstatements


20 Liability for acquisitions of operations and non-controlling interests

Liability for acquisitions of non-controlling interests 837 1,077 Outstanding consideration and earn-outs 100 83

Total liabilities 937 1,160

Non-current liabilities Liability for acquisitions of non-controlling interests 765 897 Outstanding consideration and earn-outs 62 61

Total 827 958

Current liabilities Liability for acquisitions of non-controlling interests 72 180 Outstanding consideration and earn-outs 38 22

Total 110 202

Total liabilities 937 1,160

Liability for acquisitions of non-controlling interestsLiability at 1 January 1,077 898 Foreignexchangedifferences 45 78Additions on acquisitions 45 54 Additions on disposal of non-controlling interests - 40 Disposals on acquisitions of non-controlling interests -19 -23 Interestelementondiscountedliabilities 9 11Dividends paid and other adjustments -11 -48 Adjustments recognised in goodwill relating to business combinations before 1 January 2010 -27 -22 Adjustments and interest recognised in equity relating to business combinations after 1 January 2010 -282 89

Liability for acquisitions of non-controlling interests at 31 December 837 1,077

Classificationofliabilityforacquisitionsofnon-controllinginterestsbyexpectedmaturityWithin 1 year 72 180 Between 1 and 5 years 765 870 More than 5 years - 27

Total 837 1,077

Outstanding consideration and earn-outs Liabilities at 1 January 83 123 Foreignexchangedifferences 3 -1Additions on acquisitions 36 50 Reassessment of previously recognised earn-outs 3 -9 Payments and other disposals -25 -80

Outstanding consideration and earn-outs at 31 December 100 83

Classificationofoutstandingconsiderationandearn-outsbyexpectedmaturityWithin 1 year 38 22 Between 1 and 5 years 62 61 More than 5 years - -

Total 100 83





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Note DKK million

20 Liability for acquisitions of operations and non-controlling interests (continued)

InconnectionwithFalckassuminganobligationtoacquirenon-controllinginterests,aconcurrentrightwasobtainedforFalcktoacquire the same non-controlling interests in the agreed period.

Theconsiderationforobligationsandrightstoacquirenon-controllinginterestsisdeterminedonthebasisofprofitbeforeexercisemultiplied by an already agreed multiple typically less net debt in the relevant companies. On recognition in the balance sheet, this liability is made up on the basis of earnings and net debt at the time when the con-controlling interests are expected to exercise their right to sell their shares to Falck. The calculated liability typically assumes an increase in earnings and a decrease in net debt in therelevantcompaniesascomparedwiththevaluerecognisedinthefinancialstatements.

21 Provisions

Occupational 2015 injuries Other Total Provisions at 1 January 56 38 94 Foreignexchangedifferences 7 -1 6Additions on acquisitions - 66 66 Provisions added during the year 29 8 37 Provisions used during the year -28 -37 -65

Provisions at 31 December 64 74 138

Classificationofprovisionsbyexpectedmaturity Within 1 year 37 57 94 Between 1 and 5 years 25 16 41 More than 5 years 2 1 3


Occupational 2014 injuries Other Total

Provisions at 1 January 32 24 56 Foreignexchangedifferences 4 1 5Additions on acquisitions - 8 8 Provisions added during the year 24 14 38 Provisions used during the year -4 -9 -13


Classificationofprovisionsbyexpectedmaturity Within 1 year 35 - 35 Between 1 and 5 years 21 37 58 More than 5 years - 1 1


Provisions primarily concern actuarial calculations relating to occupational injuries, onerous contracts and the Group’s obligation to clean up and demolish facilities on leased land.





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22 Loans

Non-current liabilities Assetsheldunderfinanceleases 128 66Long-term loans 6,366 5,931

Total 6,494 5,997

Current liabilities Assetsheldunderfinanceleases 69 42Short-term loans 554 747

Total 623 789

Total loans 7,117 6,786

Oftotallong-termloans,mortgageloansrepresentDKK331million(2014:DKK342million). Breakdown by maturity Due within 1 year 623 789 Due between 1 and 5 years 6,146 5,751 Due after 5 years 348 246

Total 7,117 6,786

Breakdown by currencyDKK 4,403 4,568 EUR 1,657 1,576 NOK 134 15 GBP 338 -USD 555 573 Other 30 54

Total 7,117 6,786

Interest reset periodsWithin 3 months 6,211 6,319 Between 3 and 12 months 61 43 After 12 months 845 424

Total 7,117 6,786

Thestatementssetoutabovedonotincludetheeffectofinterestrateswaps.Seenote28foradescriptionoftheGroup’srisksandcash resources.

TheGroup’seffectiveinterestrate,includingtheeffectofinterestrateswaps,hasbeendeterminedat3.4%(2014:3.9%).Theinte-restratessetoutbelowhavebeendeterminedwithouttheeffectofinterestrateswaps.

For debt with an interest reset period within 3 months, regular assessments are made of how long the interest period should be.Asatthebalancesheetdate,theinterestrateoftheprimarypartofthedebtinDKKwasfixedforonemonthandaveragedapproxi-mately2.0%(2014:2.8%).

Asatthebalancesheetdate,theinterestrateoftheprimarypartofthedebtinEURwasfixedforonemonthandaveragedapproxi-mately2.1%(2014:2.8%).

Asatthebalancesheetdate,theinterestrateoftheprimarypartofthedebtinUSDwasfixedforonemonthandaveragedapproxi-mately2.3%(2014:2.8%).

Asatthebalancesheetdate,theinterestrateoftheprimarypartofthedebtinNOKwasfixedforonemonthandaveragedapproxi-mately 3.1%.

Asatthebalancesheetdate,theinterestrateoftheprimarypartofthedebtinGBPwasfixedforonemonthandaveragedapproxi-mately 2.6%.





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Notes to the consolidated financial statements

Fordebtwithaninterestresetperiodbeyond12months(inDKK),theeffectiveinterestrateiscurrentlyapproximately4.8%(2014:4.5%).

DKK62million(2014:DKK64million)ofcapitalisedloancostshasbeendeductedfromthecarryingamountofdebt.

TheGroupisfundedbyasyndicatedloanofDKK6,165million(2014:DKK6,124million)withloantermsthatincludecovenantsrequiringthatcertainfinancialperformanceindicatorsaremet.All loan terms were honoured in 2015.

Assets held under finance leasesAssetsheldunderfinanceleasescompriseleasedvehiclesandbuildings.Theleasecontractsdonotincludeanycontingentleasepayments.

Note DKK million

22 Loans (continued)

Breakdown of liabilities concerning assets held under finance leases Present value Minimum of lease lease 2015 payments Interest payments

Due within 1 year 69 3 72Due between 1 and 5 years 121 16 137Due after 5 years 7 2 9

Total at 31 December 2015 197 21 218

Present value Minimum of lease lease 2014 payments Interest payments

Due within 1 year 42 4 46Due between 1 and 5 years 43 7 50Due after 5 years 23 8 31

Total at 31 December 2014 108 19 127

2015 2014

23 Other payables

Holiday pay, wages, etc. 778 741 Employee income taxes etc. 120 100 VAT 136 113 Derivatives 87 83 Other 42 21

Total other payables 1,163 1,058

24 Net interest paid

Financial income and expenses -226 -273 Of which unrealised gains and losses -19 -21 Interestelementondiscountedliabilities 14 17Change in amortised borrowing costs 14 13 Change in interest payable 6 -1

Net interest paid -211 -265





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Notes to the consolidated financial statements


25 Investments in subsidiaries, non-controlling interests and operations

AssetsIntangibleassets 189 198Property, plant and equipment 164 50 Financial assets 6 1 Cash 32 55 Other current assets 234 224 Equity and liabilities Interest-bearingdebt -200 -30Current liabilities, provisions, etc. -256 -166 Deferred tax -13 -42 Non-controlling interests - -15

Net assets acquired 156 275 Goodwill 247 498 Fair value of existing investments in business combinations achieved in stages -68 -Liability for acquisitions of non-controlling interests, additions during the year -45 -54

Purchase price 290 719 Adjustment for cash and cash equivalents acquired -32 -55 Outstanding consideration -36 -50 Consideration relating to prior-year acquisitions 28 65 Expensed costs from business combinations 12 39

Cash consideration for acquisitions 262 718

OtherthancustomercontractsandcustomerrelationswithatotalvalueofDKK188million(2014:DKK164million),noassetsorliabilitieshavebeenidentifiedwhichwerenotrecognisedinthecompaniesacquiredonthedateofacquisition.

Valuation of intangible assets Inconnectionwithacquisitions,anassessmentismadeofthevalueofthecustomeragreements,frameworkagreementsandcusto-merportfoliostakenover.Thevaluationthereofisbasedonthe”MultiPeriodExcessEarningsMethod(MEEM-method)”inwhichthevalueiscalculatedonthebasisofanexpectedfuturecashflow.Theprincipalassumptionsareexpectedlivesoftheexistingagreements and portfolios, earnings and contribution for using associated assets and employees.

Business combinations made during the year are based on preliminary calculations. Acquired assets include receivables from salesatfairvalueofDKK128million(2014:DKK146million).ThecontractualgrossreceivableisDKK128million(2014:DKK146million),ofwhichDKK0million(2014:DKK0million)wasdeemedtobeunrecoverableasofthedateoftakeover.





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Note DKK million

25 Investments in subsidiaries, non-controlling interests and operations (continued)

The following acquisitions were made during the financial year. Percentage Considera- of voting Main Month of Purchase tion rights Acquisitions 2015 activity Country acquisition price paid in acquired

Responce Emergency Denmark April 97 Cash 75%Manpower Hälsopartner Healthcare Sweden April 23 Cash 100%9Lives Emergency Finland June 76 Cash 51%Rapid Response Emergency USA August 52 Cash 100%Other 42 Cash

Total acquisitions in 2015 290

Profitofacquiredcompaniesafterdateofacquisition -23Full-year revenue including acquisitions 15,721 Full-yearprofitincludingacquisitions -569

Responce is a Danish ambulance service provider with activities in central and southern Jutland. Part of the purchase price has been allocated to existing customer contracts, while the rest has been allocated to goodwill, relating to the potential synergy and efficiencygainsthroughconsolidationofResponceandFalck. Manpower Hälsopartner supplies healthcare solutions for industrial businesses and public-sector customers in Sweden. Part of the purchase price has been allocated to existing customer contracts, while the rest has been allocated to goodwill, relating to the po-tential for expanding Falck’s healthcare activities. The company and its 160 employees are being integrated into Previa, a subsidiary acquired by Falck in 2014.

9Lives is one the largest ambulance service providers in Finland. This acquisition will make Falck the leading private patient transport and ambulance service provider in Finland. Part of the purchase price has been allocated to existing customer contracts. The rest has beenallocatedtogoodwill,relatingtothepotentialofgrowthintheFinnishmarketbyachievingastrongfoundationandefficiencythrough consolidation and by leveraging the competencies, knowledge and relations of key persons. Rapid Response is an ambulance service provider in, primarily, Detroit. Part of the purchase price has been allocated to existing customer contracts and the rest to goodwill, relating to a strong platform for continued growth in the United States.

Percentage Considera- of voting Main Month of Purchase tion rights Acquisitions 2014 activity Country acquisition price paid in acquired Fineta Emergency France March 36 Cash 51%Previa Healthcare Sweden June 337 Cash 100%Quick Care Healthcare Denmark June 253 Cash 100%BHM and Haces Emergency Colombia November 45 Cash 80%Other 48 Cash

Total acquisitions in 2014 719

Profitofacquiredcompaniesafterdateofacquisition 6Full-year revenue including acquisitions 14,476 Full-yearprofitincludingacquisitions 264





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25 Investments in subsidiaries, non-controlling interests and operations (continued)

Divestment of subsidiaries, non-controlling interests and operations

Assets Property, plant and equipment - 11 Cash - 4 Other current assets - 30 Equity and liabilities Interest-bearingdebt - -Current liabilities - -15 Deferred tax - 4 Capital infusion - 3

Net assets divested - 37 Reclassifiedtoassociates - -18

Sales price - 19 Adjustment for cash and cash equivalents transferred - -4 Sales price receivable - -19

Cash flow from divestment of subsidiaries, non-controlling interests and operations - -4

Divestments in 2014 comprised Ambuce in Belgium.

26 Movements relating to non-controlling interests

Dividend to non-controlling interests recognised in equity -30 -15 Dividend to non-controlling interests recognised in provisions for acquisitions of non-controlling interests -11 -48 Divestment of non-controlling interests and capital contributions from non-controlling interests 15 1,018 Acquisition of non-controlling interests - -23

Total movements relating to non-controlling interests -26 932





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27 Contingent liabilities, contractual obligations and collateral security

Contingent liabilities

Warranty and guarantee commitments 2 4

The Falck Group is a party to certain litigation and disputes. Management believes that rulings in thisrespectwillnothaveamaterialimpactontheGroup’sfinancialposition.

The Group has issued performance guarantees to a certain extent in connection with a number of contracts, including performance guarantees in connection with ambulance contracts for a totalofDKK252million(2014:DKK418million).

As part of the Group’s activities, usual supplier agreements have been entered into.

Usual representations and warranties are made in connection with the divestment of companies andoperations.Therearecurrentlynooutstandingclaimswhicharenotsufficientlyrecognisedin the balance sheet.

Joint taxationFalckHoldingA/SandtheGroup’sDanishsubsidiariesaretaxedjointlyinDenmarkwithLund-beckfondInvestA/Sastheadministrationcompany.PursuanttotheDanishCorporationTaxAct,thecompanyisliablefromandincludingthefinancialyear2013forincometaxesetc.forthejointly taxed companies and, from and including 1 July 2012, also for any obligations to withhold tax at source on interest, royalties and dividends from the jointly taxed companies.

Contractual obligationsMinimum lease payments for operating lease commitmentsDue within 1 year 424 365 Due between 1 and 5 years 1,040 848 Due after 5 years 1,132 818

Operating lease commitments at 31 December 2,596 2,031

Net present value of lease commitments 2,200 1,720

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 429 373

The operating lease commitments concern leases for vehicles and buildings. The lease term for cars is typically between 4 and 9 years. The lease term for buildings is typically up to 20 years.

Noneoftheleasesincludematerialcontingentleasepayments,buttheGrouphasarightoffirstrefusal to buy a number of buildings at a preset value. At year-end, Falck is subject to a commit-menttopurchaseapropertyatavalueofDKK21million(2014:DKK0million).

Collateral securityThesharesinthesubsidiariesFalckA/SandFalckDanmarkA/Shavebeenprovidedascollateralfor the Group’s debt.

Carrying amount of the Group’s properties that have been mortgaged in security of loans 418 445 Carrying amount of the Group’s operating equipment that has been mortgaged in security of loans - 4 Bearer mortgages issued and used as collateral for credits 333 343 Unused bearer mortgages 13 14

See note 28 on liquidity risks for the conditions applicable to mortgaged assets.





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Note DKK million

28 Financial instruments

Financial risksAsaconsequenceofitsoperations,investmentsandfinancing,theGroupisexposedtoanumberoffinancialrisks,includingmarketrisk(foreignexchangeandinterestraterisk),creditriskandliquidityrisk.

Grouppolicyistonotactivelyspeculateinfinancialrisks.Accordingly,theGroup’sfinancialmanagementexclusivelyinvolvesthema-nagementandmitigationoffinancialrisksthatariseasadirectconsequenceoftheGroup’soperations,investmentsandfinancing.

TheGroup’sriskexposureissubjecttocontinuouschangesasaresultofchangesinthelevelofdebt,inflationriskinemergingmarkets, foreign exchange risk and interest rate risk. The Group monitors these risks in an ongoing process and hedges them, if necessary. There are no material changes in the Group’s risk management as compared to 2014.

Foreign exchange riskTheGroup’sforeignsubsidiariesarenotseverelyexposedtoexchangeratefluctuations,asbothrevenueandmostcostsoftheindividual subsidiaries are denominated in the same currencies. The main exchange rate exposure faced by the Group relates to the translationintoDanishkronerofthefinancialresultsandequityofforeignsubsidiaries.

Theincomestatementisaffectedtoaminorextentbychangesinexchangerates,astheprofitofforeignsubsidiariesistranslatedinto Danish kroner using average exchange rates.

The Group regularly assesses its foreign exchange risk in order to determine whether its exposure should be hedged by same-cur-rency loans or forward exchange contracts. The forward exchange contracts stated below were entered into to reduce the Group’s foreign exchange risks in respect of the translation risk for investments in subsidiaries. See the section below regarding hedging.

41%oftheGroup’srevenueisdenominatedinDanishkroner(DKK)(2014:44%).Othercurrenciesthataccountformorethan5%ofrevenueorearningsareUSdollars(USD),Norwegiankroner(NOK),euros(EUR),Swedishkroner(SEK)andColombianpesos(COP).

2015 Hypotheticalimpactontheprofitforthe year and the Group’s equity from reasonably Probable change Hypothetical impact on Hypothetical impact probable changes in exchange rates: in exchange rate (1) profitfortheyear(1) on equity (1)

EUR/DKK 1% 15 16USD/DKK 10% 47NOK/DKK 5% 6GBP/DKK 5% 13SEK/DKK 5% 24COP/DKK 15% 1

2014 Hypotheticalimpactontheprofitforthe year and the Group’s equity from reasonably Probable change Hypothetical impact on Hypothetical impact probable changes in exchange rates: in exchange rate (1) profitfortheyear(1) on equity (1)

EUR/DKK 1% 15 17USD/DKK 10% 55NOK/DKK 5% 6GBP/DKK 5% 16SEK/DKK 5% 21COP/DKK 15% 2

(1)Anincreaseintheexchangeratewouldleadtoanincreaseinprofitfortheyearandanimpactonequity,andadecreaseintheexchangeratewouldhavetheoppositeeffect.





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Note DKK million

28 Financial instruments (continued)

Assumptions regarding sensitivity informationThesensitivitiesrelatedtofinancialinstrumentshavebeendeterminedonthebasisofthefinancialinstrumentsrecognisedat31December 2015. The sensitivities stated have been determined on the basis of an assumption that sales, price level and interest rate levelareunchanged.Theforeignexchangerisksstatedabovedonotincludethetranslationriskoftranslatingtheprofitandequityof foreign subsidiaries into Danish kroner.

Interest rate riskTheGroup’sinterestrateriskismainlyaffectedbyloansraisedbytheGroup.BasedontheGroup’sassessmentofthemarketsitua-tion, a decision has been made not to make any changes to the Group’s existing interest rate swaps, which expire in 2019.The Group’s syndicated loans carry variable interest, but the Group has chosen to hedge this risk by interest rate swaps and conse-quentlyaround60%to70%ofthesyndicatedloansareatfixedratesofinterest.

TheinterestrateexposureishedgedbyinterestrateswapsduringthehedgingperiodtotheeffectthatinterestratesonthepartofthedebtthatisdenominatedinDKKcannotexceed3.1%(2014:3.1%)includingthecurrentinterestratemargin,thatinterestratesonthepartofthedebtthatisdenominatedinEURcannotexceed2.9%(2014:2.9%)includingthecurrentinterestratemargin,andthatinterestratesonthepartofthedebtthatisdenominatedinUSDcannotexceed3.4%(2014:3.4%)includingtheapplicableinte-restratemargin.Theremainingpartofthesyndicatedfinancingisbasedonshort-terminterestrates.TheGroupisthereforeonlytoaminorextentsensitivetofluctuationsinmarketinterestrates,andafluctuationby1%wouldchangetheinterestexpensefortheyearbyDKK19million(2014:DKK20million),asalargepartoftheinterestrateriskishedgedbyinterestrateswaps.Withoutthesehedges,afluctuationby1%wouldchangetheGroup’sinterestexpensebyDKK62million(2014:DKK64million).

NegativemarketinterestratesaffecttheGroup’sinterestexpensesasFalckpaystheseratesoninterestrateswapsconcluded,whileit is only partly compensated for negative interest rates on loans.

Credit riskTheGroup’screditriskmainlyconcernsprimaryfinancialassets.Creditriskrelatedtofinancialassetsequalsthevaluesrecognisedinthe balance sheet.

TheGroupisnotexposedtosignificantrisksconcerningindividualcustomersorbusinesspartners.Whenenteringintosignificantcontracts, the Group makes a credit assessment of the customer in order to reduce the potential credit risk. The Group’s credit expo-sure to large customers is generally considered low as the Group’s large customers are mainly public authorities. However, write-downs of receivables have generally increased. Falck’s presence in the ambulance services market in the United States generally entails a higher credit risk exposure because payment for ambulance services is collected directly from the patient transported if the patient does not have health insurance or coverage under a public insurance scheme.

Subscription sales to private and corporate customers are not deemed to involve material risks to the Group, as the amounts are small for the individual subscriptions, and general and individual write-downs are made for anticipated bad debts.

Liquidity riskThe Group’s liquidity risk primarily concerns its ability to meet its obligations to pay its employees and creditors and to service its debts.

TheGroupcontinuouslymonitorsitsfreecashflowinordertoassessitsliquidityrisks.SomeoftheGroup’sloans,includingthedebtofFalckHoldingA/S,aresubjecttocertainloancovenants,andtheGroupcontinuouslymonitorswhetherthecovenantsareobserved.

Seenote22forabreakdownofloanmaturities.Inadditiontoitsrecognisedliabilities,theGroupalsohastheoptiontodrawonanumber of short-term credits.

Atyear-end2015,theGroup’sunusedcreditfacilitieswereDKK1,065million(2014:DKK768million).

WiththeadditionofavailablecashandcashequivalentsofDKK637million(2014:DKK1,015million),totalcashresourceswereintheregionofDKK1,702million(2014:DKK1,783million).





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Note DKK million


Maturity analysis of financial assets and liabilitiesAssumptions applied in the maturity analysisThematurityanalysisisbasedonallundiscountedcashflows,includingestimatedinterestpayments.Interestpaymentsareesti-mated based on current market conditions.

Theundiscountedcashflowsfromderivativefinancialinstrumentsarepresentedgross,unlessthepartieshaveacontractualright/obligation to settle net.

Due Con- Due between Due tractual Total within 1 and 5 after 5 cash carrying Market Contractual cash flows including interest 2015 1 year years years flows amount value

Financial assetsTrade receivables 2,401 - - 2,401 2,401 2,401 Receivables from associates 41 - - 41 41 41 Other receivables 216 28 35 279 279 279 Cash 637 - - 637 637 637

Loans and receivables 3,295 28 35 3,358 3,358 3,358

Securities subject to regulations on solvency requirements 115 - - 115 115 115

Held-to-maturity investments 115 - - 115 115 115

Total financial assets 3,410 28 35 3,473 3,473 3,473

Financial liabilities Loans 779 6,589 433 7,801 7,117 7,153 Liability for acquisitions of operations and non-controlling interests 71 981 - 1,052 937 937 Trade payables 857 - - 857 857 857 Other payables 1,076 - - 1,076 1,076 1,076

Financial liabilities measured at amortised cost 2,783 7,570 433 10,786 9,987 10,023

Derivativestohedgefuturecashflows 43 30 - 73 73 73Derivatives to hedge net investments in foreign companies 14 - - 14 14 14

Financial liabilities used as hedging instruments 57 30 - 87 87 87

Total financial liabilities 2,840 7,600 433 10,873 10,074 10,110





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Note DKK million


Due Con- Due between Due tractual Total within 1 and 5 after 5 cash carrying Market Contractual cash flows including interest 2014 1 year years years flows amount value

Financial assetsTrade receivables 2,008 - - 2,008 2,008 2,008 Receivables from associates 52 - - 52 52 52 Other receivables 189 38 16 243 243 243 Cash 1,015 - - 1,015 1,015 1,015

Loans and receivables 3,264 38 16 3,318 3,318 3,318

Securities subject to regulations on solvency requirements 94 - - 94 94 94

Held-to-maturity investments 94 - - 94 94 94

Derivatives to hedge net investments in foreign companies 2 - - 2 2 2

Financial assets used as hedging instruments 2 - - 2 2 2

Total financial assets 3,360 38 16 3,414 3,414 3,414

Financial liabilities Loans 942 6,245 264 7,451 6,786 6,863 Liability for acquisitions of operations and non-controlling interests 186 1,149 27 1,362 1,160 1,160 Trade payables 757 - - 757 757 757 Other payables 987 - - 987 987 987

Financial liabilities measured at amortised cost 2,872 7,394 291 10,557 9,690 9,767

Derivativestohedgefuturecashflows 33 39 - 72 72 72Derivatives to hedge net investments in foreign companies 12 - - 12 12 12


Total financial liabilities 2,917 7,433 291 10,641 9,774 9,851





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Note DKK million


Hedging and derivativesThe Group uses forward exchange contracts to hedge its risks related to exchange rates.

Thefairvalueoftheeffectivepartoftheoutstandingforeignexchangecontractsasat31Decemberusedashedginginstrumentsand qualifying for hedge accounting in respect of future transactions has been recognised directly in equity through other compre-hensive income until the hedged transactions are recognised in the income statement.

Forward exchange contracts are used to hedge investments in subsidiaries with a functional currency other than Danish kroner.

2015 2014 Contract Market Contract Market Foreign currency sold/bought on forward contracts value value value value

NOK(expiredin2015) - - 130 -6GBP(expiredin2015) - - 314 -6SEK(expiresin2016) 471 -14 416 2

Total 471 -14 860 -10

Of which recognised in income statement - -

For future recognition -14 -10

Themarketvalueisrecognisedinotherreceivables/otherpayables.

All contracts expire in 2016 and as they hedge netinvestmentsabroad,theydonotaffecttheincomestatement.

2015 2014 Hedged Market Hedged Market Interest rate swaps value value value value

DKKinterestrateswap(fixedrate0.56%),expiresinJune2016 725 -3 725 -9DKKinterestrateswap(fixedrate0.88%),expiresinSeptember2017 2,015 -37 2,015 -35USDinterestrateswap(fixedrate1.14%),expiresinSeptember2017 464 -2 441 -1EURinterestrateswap(fixedrate0.67%),expiresinSeptember2017 1,201 -20 1,198 -23DKKinterestrateswap(fixedrate0.53%),runsfrom September 2017 to June 2019 1,700 -5 1,700 -2 EURinterestrateswap(fixedrate0.25%),runsfrom September 2017 to June 2019 1,493 -6 1,489 -2

Total -73 -72

Of which recognised in income statement - -

For future recognition -73 -72

The market value is recognised in other payables.

All interest rate swaps are recognised in the income statement until expiry.





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Note DKK million


Methods and assumptions for the determination of fair valuesTheportfoliooflistedsecuritiesismeasuredatofficiallyquotedpricesorpricequotes.

The fair value of mortgage debt is measured on the basis of the fair value of the underlying bonds.

The fair value of credit institutions is measured by discounting based on market expectations.

Forward exchange contracts and interest rate swaps are measured using generally accepted valuation techniques based on relevant observable swap curves and exchange rates.

2015

Quoted Non- market Observable observable Fair value hierarchy for financial instruments prices input input measured at fair value in the balance sheet (Level 1) (Level 2) (Level 3) Total

Financial assets Derivatives to hedge net investments in foreign companies - - - -

Total financial assets - - - -

Financial liabilities Derivativestohedgefuturecashflows - 73 - 73Derivatives to hedge net investments in foreign companies - 14 - 14

Total financial liabilities - 87 - 87

2014

Quoted Non- market Observable observable Fair value hierarchy for financial instruments prices input input measured at fair value in the balance sheet (Level 1) (Level 2) (Level 3) Total

Financial assets Derivatives to hedge net investments in foreign companies - 2 - 2

Total financial assets - 2 - 2

Financial liabilities Derivativestohedgefuturecashflows - 72 - 72Derivatives to hedge net investments in foreign companies - 12 - 12






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29 Related parties

FalckHoldingA/SissubjecttocontrollinginfluencebyLundbeckfondInvestA/S,Scherfigsvej7,DK-2100CopenhagenØ,Denmark,whichholds57.4%ofthesharecapital.LundbeckfondInvestA/SisownedbytheLundbeckFoundation.

Falck Holding A/S has registered the following shareholders who hold 5% or more of the share capital: LundbeckfondInvestA/S,Copenhagen 57.4% 57.4%KIRKBIInvestA/S,Billund 27.7% 27.7%LiberatioA/S,Copenhagen(ownedbythemembersoftheExecutiveManagementBoard) 10.3% 10.3% Transactions with shareholders were as follows: Dividend -225 - Loans 275 - Interestonloans 7 - The loans expires on 1 July 2019 and is subordinate to the Group’s syndicated loans.The balance at 31 December 2015 is DKK 282 million. BesidestransactionsrelatedtothejointtaxationwithLundbeckfondInvestA/S,asdescribedin note 27, no transactions other than those stated above were completed with these related parties during the period under review.

Management RelatedpartiesinFalckHoldingA/SwithsignificantinfluenceincludetheGroup’sExecutiveManagement Board and Board of Directors and their close relatives. Related parties also comprise companies in which these individuals have material interests.

Transactions with executives were as follows: Sale of warrants as described in note 6 - 5 Buy-back of warrants as described in note 6 -1 -

Other than those stated above, the Group had no transactions with the members of the ExecutiveManagementBoard,BoardofDirectorsorotherpersonswithsignificantinfluencebesides the remuneration paid to the Management as stated in notes 5 and 6.

Associates TherelatedpartiesofFalckHoldingA/Salsoincludeassociatesinwhichthecompanyhassignificantinfluence.Seenote15and”Legalentities”foranoverviewofassociates.

Trading with associates was as follows: Sale of property, plant and equipment 25 30 Purchase of goods and services -2 -15 Royalties 2 2 Lease costs -25 -29

Receivables from associates appear from the balance sheet, and interest thereon for the period amounted to DKK 9 million.

Transactionswithsubsidiarieshavebeeneliminatedintheconsolidatedfinancialstatementsinaccordancewiththeaccountingpolicies.





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Note

30 Events after the balance sheet date

NoeventshaveoccurredafterthebalancesheetdatethathaveamaterialimpactonthefinancialpositionoftheFalckGroup.

31 Accounting estimates and judgments

The calculation of the carrying amounts of certain assets and liabilities relies on judgments, estimates and assump-tions about future events.

The estimates and assumptions applied are based on histori-cal experience and other factors that Management consid-ers reasonable under the circumstances, but which are inherently uncertain and unpredictable. Such assumptions may be incomplete or inaccurate, and unexpected events or circumstancesmayoccur.Inaddition,theGroupissubjecttorisks and uncertainties that may cause actual outcomes to deviate from such estimates.

Estimatesmaterialtothefinancialreportingaremadeinthe calculation of, i.a. depreciation, amortisation and impair-ment losses, provisions, the determination of fair values, as well as contingent liabilities and assets.

Amortisation and depreciation periods and residual valuesInthedeterminationofthecarryingamountofintangibleassets and property, plant and equipment, estimates are required of the estimated economic lives of the assets and of residual values.

Goodwill impairment testIntheannualgoodwillimpairmenttestorincaseofanyindication of impairment, an assessment is made of how thepartsoftheGroup(cash-generatingunits)towhichthegoodwillrelateswillbeabletogeneratesufficientcashflowsinfuturetosupportthevalueofgoodwillandothernet assets in the relevant part of the Group.

As a result of the nature of the company’s business, ex-pectedcashflowsmustbeestimatedoveraperiodofanumber of years, which inherently produces some degree of uncertainty.Theuncertaintyisreflectedinthediscountrateapplied.

The impairment test of goodwill and the associated particu-larly sensitive factors and sensitivity analyses are described innote13totheconsolidatedfinancialstatements.

Impairment of receivables Impairmentlossesontradereceivablesarecalculatedonthe basis of Management’s assessment of the customer’s or thecustomergroup’scapacitytopay.Impairmentlossesontradereceivablesareaffectedbythefactthatambulancecompanies in the United States collect payment directly from the patient if the patient does not have health insur-ance or is covered by a public insurance scheme. This may bedifficult,especiallyintheeventofemergencyresponses.Moreover, as a result of increased revenue and changed paymentprofileintheUnitedStates,theGrouphasseenoverdue receivables go up during the past few years. This developmentisreflectedintheimpairmentlossescharged.

Purchase price allocation in business combinationsInconnectionwithallocationofpurchasepriceinbusinesscombinations, calculations are made of fair value of acquired assets and liabilities. As this determination is based on ex-pectedfuturecashflowsrelatedtotheassetsandliabilitiesacquired,therealisationofsuchcashflowsasanticipatedissubjecttoaninherentuncertainty.InaccordancewithIFRS3, the purchase price allocations in business combinations may be adjusted for up to 12 months from the date of ac-quisition.

Liabilty for acquisition of non-controlling interestsInthedeterminationofthevalueofissuedputoptionsun-der which the Group assumes an obligation to buy shares in subsidiaries held by non-controlling shareholders, Manage-mentmakescertainestimates,includingthefuturefinancialperformance of the subsidiaries and the time of exercise. These factors are of material importance to the expected exercise price and the liability is therefore subject to uncer-tainty.





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FalckHoldingA/Sisapubliclimitedliabilitycompanyincor-porated in Denmark. The annual report for the year ended 31December2015includesboththeconsolidatedfinancialstatementsofFalckHoldingA/Sanditssubsidiaries(theGroup)andseparatefinancialstatementsoftheparentcompany.

TheannualreportofFalckHoldingA/Sispresentedinac-cordancewithInternationalFinancialReportingStandards(IFRS)asadoptedbytheEUandadditionalDanishdisclosurerequirements for the annual reports of large reporting class C entities.

The Board of Directors and the Executive Management Board considered and approved the annual report for 2015 ofFalckHoldingA/Son11March2016.TheannualreportwillbesubmittedtotheshareholdersofFalckHoldingA/Sfor adoption at the annual general meeting to be held on 18 April 2016.

The annual report has been prepared under the historical costconvention,exceptthatderivativesandfinancialinstru-ments are measured at fair value:

TheannualreportispresentedinDanishkroner(DKK)rounded to the nearest million.

NEW FINANCIAL REPORTING STANDARDS

Effective1January2015,FalckHoldingA/Simplementedthe following:

• PartsoftheannualimprovementstoIFRS2010-2012concerningamendmentstoIFRS8–OperatingSegments,IAS16–Property,PlantandEquipment/IAS38–IntangibleAssetsandIAS24–RelatedPartyDisclosures

• AnnualimprovementstoIFRS2011-2013concerningminoramendmentstoIFRS3–BusinessCombinationsandIFRS13–FairValueMeasurement

• AmendmenttoIAS19–EmployeeBenefits

Noneoftheaboveamendmentshaveaffectedtherecogni-tionandmeasurementorthepresentationandclassificationfor 2015.

FUTURE IFRS AMENDMENTS

StandardsandadditionsissuedbytheIASBwhichcomeintoforce after 31 December 2015, standards and additions not yet adopted by the EU and standards for which the EU has postponedtheeffectivedatehavenotbeenimplemented.

Note

32 Accounting policies

They include:

• IFRS9–FinancialInstruments• IFRS15–RevenuefromContractswithCustomers• IFRS16–Leasing• AmendmenttoIAS16and38–ClarificationofAcceptable

Methods of Depreciation and Amortisation • AmendmenttoIAS1–PresentationofFinancialState-

ments• AmendmenttoIAS27–EquityMethodinSeparateFinan-

cial Statements• AmendmenttoIFRS11–ClarificationofProvisionsonAc-countingforAcquisitionsofInterestsinJointOperations

• AnnualimprovementstoIFRS2012-2014

TheimplementationofIFRS9isexpectedtoresultinhigherimpairment losses on receivables as the standard requires recognition of expected losses, whereas under the current model impairment losses are not charged until there are indicationsofimpairment.TheimplementationofIFRS15is expected to result in a slight decline in revenue due to a differentagent-principalassessment.TheimplementationofIFRS16willresultinrecognitionofassetsheldunderoperating leases and related liabilities in the balance sheet. The Group’s operating lease commitments at 31 December 2015 are presented in note 27. The implementation of these standardswillalsoresultinadditionalnotespecificationsandreclassifications.Noneofthesethreestandardsareex-pectedtosignificantlyaffecttheprofitfortheyear.

The implementation of other standards is not expected tosignificantlyaffectrecognitionandmeasurement.TheanalysisoftheexpectedeffectofimplementingIFRS9,IFRS15,IFRS16andotherstandardsandadditionshasyettobecompleted.

The accounting policies set out below have been consistent-lyappliedtothefinancialyearandthecomparativefigures.

MATERIALITY IN PRESENTATION

Inconnectionwiththepreparationoftheannualreport,Management evaluates how the annual report should be presented.Intheevaluation,itisconsideredimportantthatthe contents are of a material nature to users.

Inthemanagementreview,Managementendeavourstopresent a comprehensive and useful review of matters with the greatest materiality to the Falck Group and the attain-mentoftheGroup’sfinancialtargets.Inthepresentationofthefinancialstatements,aspecificevaluationismadeinre-spectofeachlineitemandnotetothefinancialstatements





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of the need for further decomposition or, alternatively, aggregation of several line items and omissions or aggre-gationofnotestothefinancialstatements.Thechoiceofpresentation is made based on an overall assessment of the requirement to give a true and fair view, the requirements toformunderIFRS,Falck’sspecificcircumstancesandotherrelevant factors.

BASIS OF CONSOLIDATION

Theconsolidatedfinancialstatementsincludetheparentcompany,FalckHoldingA/S,anditssubsidiaries.SubsidiariesareentitiescontrolledbyFalckHoldingA/S.Controlmeansthat the Falck Group controls the company, i.e. that the Falck Group is exposed or has rights to variable returns from the companyandhastheabilitytoaffectthesizeofthosere-turns through its power over the company. Control is usually achieved by directly or indirectly holding or controlling more than 50% of the voting rights or other rights such as agree-ments on management control.

TheconsolidatedfinancialstatementsarepreparedonthebasisofthefinancialstatementsofFalckHoldingA/Sandsubsidiaries by adding items of a like nature.

Thefinancialstatementsusedforconsolidationarepre-pared in accordance with the Group’s accounting policies.

On consolidation, investments in subsidiaries, intra-group income and expenses, intra-group balances and dividends and realised and unrealised gains and losses on transactions between Group entities are eliminated.

Thelineitemsofthefinancialstatementsofsubsidiariesarefullyconsolidatedintheconsolidatedfinancialstatements.Profitfortheyearandequityattributabletonon-controllinginterests in subsidiaries that are not wholly owned are in-cludedintheconsolidatedprofitandequity,respectively,but as separate line items.

AssociatesEnterprisesinwhichtheFalckGroupexercisessignificantin-fluencebutnotcontroloftheoperatingpolicyandfinancialdecisionsareclassifiedasassociates.Significantinfluenceis generally achieved by directly or indirectly holding or controlling more than 20%, but less than 50%, of the voting rights. Agreements and other matters are included in the as-sessmentofinfluence.

Unrealised gains on transactions with associates are elimi-nated in proportion to the Group’s share of the enterprise.

Business combinationsCompaniesacquiredorestablishedduringthefinancialyearare recognised as from the date of acquisition or inception. Companies divested or discontinued are recognised in the income statement until the date of divestment or discontin-uation.Thecomparativefiguresarenotrestatedtoreflectcompanies acquired, divested or discontinued.

Acquisitions of subsidiaries or associates are accounted for applyingtheacquisitionmethod.Identifiableassets,liabili-ties and contingent liabilities of acquirees are stated at their fairvalueatthedateofacquisition.Identifiableintangibleassets are recognised if they are separable or derive from a contractual right. Deferred tax on revaluations is recog-nised.

The acquisition date is the date on which the Group obtains control of the acquiree.

Anypositivedifferencebetweentheconsiderationandthevalue of non-controlling interests in the acquiree and the fair value of any previously held interests in the acquiree, on theonehand,andthefairvalueoftheidentifiableassets,liabilities and contingent liabilities, on the other hand, is recognised in the balance sheet as goodwill. Goodwill is not amortised, but is tested for impairment at least once a year. On acquisition, goodwill is allocated to the cash-generating units which will subsequently form the basis for future im-pairment tests.

Any goodwill arising and any fair value adjustments made on the acquisition of a foreign company whose functional currency is not the same as the presentation currency used intheconsolidatedfinancialstatementsareaccountedfor as assets and liabilities of the foreign company and are translated on initial recognition to the foreign company’s functional currency at the exchange rate ruling at the trans-action date.

Anynegativedifferenceisrecognisedintheincomestate-ment on the date of acquisition.

The consideration for an enterprise consists of the fair value of the agreed purchase price. For business combinations in which the agreement includes a provision on adjustment of the consideration conditional on future events, the fair value of this part of the consideration is recognised at the date of acquisition. Any changes in the fair value of the con-tingent consideration after initial recognition are recognised in the income statement. Put options issued in connection with acquisitions, the value of which is contingent on future

Note

32 Accounting policies (continued)





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events, will be recognised as part of the consideration at the date of acquisition. The put options issued are subsequently measured at the present value of the expected exercise price. Any changes in the value of the issued put options after initial recognition are recognised in equity. Acquisition costs and the interest element of discounting are recog-nised in the income statement.

Adjustments of liabilities in connection with contingent consideration and issued put options, the value of which is conditional on future events relating to business combina-tions with an acquisition date prior to 1 January 2010, will continuetoberecognisedinaccordancewithIFRS3(2004),i.e. adjustments are recognised in goodwill until the condi-tions have been met or the issued put options are exercised.

Ifuncertaintiesregardingthemeasurementofacquiredidentifiableassets,liabilities,contingentliabilitiesortheconsideration for the business combination exist at the acquisition date, initial recognition takes place on the basis ofpreliminaryfairvalues.Ifidentifiableassets,liabilities,contingent liabilities and the consideration for the business combination are subsequently determined to have had a dif-ferentfairvalueattheacquisitiondatethanfirstassumed,goodwill is adjusted until 12 months after the acquisition date.Theeffectoftheadjustmentsisrecognisedintheopeningequity,andthecomparativefiguresarerestatedaccordingly. Goodwill is not adjusted subsequently except in the event of material errors.

Gains or losses on divestment or winding up of subsidiaries andassociatesarestatedasthedifferencebetweenthesales or disposal amount and the carrying amount of the net assets including goodwill at the time of sale plus sales or windingupcosts.Inaddition,anyretainednon-controllinginterests are measured at fair value. Gains or losses on the divestment or winding up of subsidiaries and associates andtheeffectofrenewedmeasurementofanyretainednon-controlling interests are recognised in the income state-ment.

Non-controlling interestsOn initial recognition, non-controlling interests are meas-ured either at fair value (including the fair value of goodwill relatedtonon-controllinginterestsintheacquiree)oras non-controlling interests’ proportionate share of the acquiree’sidentifiableassets,liabilitiesandcontingentli-abilities measured at fair value (excluding the fair value of goodwill related to non-controlling interests’ share of the acquiree).Themeasurementbasisfornon-controllinginter-ests is selected for each individual transaction.

Acquisition and divestment of non-controlling interestsIncreasesandreductionsofnon-controllinginterestsareaccounted for as transactions with shareholders, in their ca-pacityasshareholders.Asaresult,anydifferencesbetweenadjustment to the carrying amount of non-controlling inter-ests and the fair value of the consideration received or paid are recognised directly in equity.

When put options are issued as part of the consideration for business combinations, the non-controlling interests re-ceiving put options are considered to have been redeemed on the acquisition date. The non-controlling interests are eliminated and a debt obligation is recognised. The liability is determined as the present value of the expected exercise price of the option. Subsequent adjustments to the liability are recognised in equity.

Issuedputoptionsrelatedtobusinesscombinationswithanacquisition date prior to 1 January 2010 will continue to be recognisedinaccordancewithIFRS3(2004),i.e.withrecog-nition of interest expenses in the income statement and val-ue changes in goodwill. Any subsequent dividend payments to the option holders reduce the liability, as the option price is adjusted for dividend payments.

Foreign currency translation and hyperinflationA functional currency is determined for each of the report-ing entities of the Group. The functional currency is the cur-rency used in the primary economic environment in which the reporting entity operates. Transactions in currencies other than the functional currency are transactions in for-eign currencies.

On initial recognition, transactions denominated in foreign currencies are translated to the functional currency at the exchange rates ruling at the transaction date. Exchange dif-ferences arising between the exchange rate ruling at the transaction date and the exchange rate ruling at the date of actual payment are recognised in the income statement underfinancialincomeorfinancialexpenses.

Receivables, payables and other monetary items denomi-nated in foreign currency are translated into the functional currency at the exchange rate ruling at the balance sheet date.Thedifferencebetweentheexchangeraterulingatthe balance sheet date and the exchange rate ruling at the date when the receivable or payable arose or the exchange rateappliedinthemostrecentfinancialstatementsisrec-ognisedintheincomestatementunderfinancialincomeorfinancialexpenses.

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Onrecognitionintheconsolidatedfinancialstatementsof enterprises with another functional currency than DKK, the statements of comprehensive income are translated at the exchange rates at the transaction date and the balance sheets are translated at the exchange rates at the balance sheet date. Average exchange rates for the month are used as the exchange rate at the transaction date to the extent thatthisdoesnotsignificantlychangethepresentationoftheunderlyingtransactions.Exchangedifferencesarisingon the translation of the equity of these subsidiaries at the beginning of the year to the exchange rates ruling at the balance sheet date and on the translation of statements of comprehensive income from the exchange rate ruling at the transaction date to the exchange rate ruling at the balance sheet date are recognised directly in other comprehensive incomeandclassifiedinequityinaseparatecurrencytrans-lationreserve.Exchangedifferencesareallocatedbetweenthe parent company’s and the non-controlling interests’ shares of equity.

Onrecognitionintheconsolidatedfinancialstatementsofsubsidiariesandassociatesoperatinginhyperinflation-ary economies, revenue and costs are translated at the exchange rate ruling at the balance sheet date. Prior to the translation, the income statement and the non-monetary items of the balance sheet are restated taking into account thebuyingpowerofthefunctionalcurrencybasedoninfla-tionuntilthebalancesheetdate(inflationcorrection).Theeffectoftheinflationcorrectionisrecognisedinthecurren-cytranslationreserveinequity.Intheincomestatement,itisrecognisedinfinancialsasaloss/gainonthemonetarynetposition in the relevant entities. The assessment of when an economyishyperinflationaryisbasedonqualitativeaswellas quantitative factors, including whether the accumulated inflationrateoverathree-yearperiodismorethan100%.

Foreign exchange adjustments of balances that are con-sidered part of the overall net investment in companies with functional currencies other than DKK are recognised intheconsolidatedfinancialstatementsdirectlyinothercomprehensiveincomeandclassifiedinequityinaseparatecurrency translation reserve. Similarly, exchange gains and lossesonthepartofloansandderivativefinancialinstru-mentseffectivelyhedgingthenetinvestmentinsuchcom-paniesandwhicheffectivelyhedgeagainstcorrespondingexchangegains/lossesonthenetinvestmentinthecom-pany are recognised directly in other comprehensive income andareclassifiedinequityinaseparatecurrencytranslationreserve.

Onrecognitionintheconsolidatedfinancialstatementsof associates with a functional currency other than DKK, the share of results for the year is translated at average exchange rates, and the share of equity including goodwill is translated at the exchange rates ruling at the balance sheetdate.Exchangedifferencesarisingonthetranslationof the share of the opening equity of foreign associates to exchange rates ruling at the balance sheet date and on the translation of the share of results for the year from aver-age exchange rates to exchange rates ruling at the balance sheet date are recognised directly in other comprehensive incomeandareclassifiedinequityinaseparatecurrencytranslation reserve.

On full or partial divestment of foreign subsidiaries, where control is given up, foreign exchange adjustments accu-mulated in equity through other comprehensive income andwhichcanbeattributedtoentitiesarereclassifiedproportionately from the “Currency translation reserve” to the income statement together with any gain or loss on the divestment.

On the divestment of partially owned foreign subsidiaries, the part of the currency translation reserve that relates to non-controlling interests is not recognised in the income statement.

On partial divestment of foreign subsidiaries without giving up control, a proportionate share of the currency translation reserve is transferred from the parent company sharehold-ers’ to the non-controlling shareholders’ share of equity.

On partial divestment of associates, the proportionate share of the accumulated currency translation reserve recognised inothercomprehensiveincomeisreclassifiedtoprofitforthe year together with the gain or loss on the divestment

Any repayment of intra-group balances that are considered part of the net investment is not considered, in itself, a par-tial divestment of subsidiaries.

Derivative financial instrumentsDerivativefinancialinstrumentsarerecognisedatthedateaderivative contract is entered into and measured in the bal-ance sheet at fair value.

Thefairvalueofderivativefinancialinstrumentsisrecog-nised as separate assets or liabilities in other receivables or other payables respectively.

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Thefairvalueofderivativefinancialinstrumentsisdeter-mined on the basis of market data and generally accepted pricing models.

Hedges of net investmentDerivativefinancialinstrumentsenteredintoinordertoeffectivelyhedgeinvestmentsinforeignsubsidiariesarerecognised in the consolidated balance sheet through com-prehensive income at the time they are entered into and are measured at fair value at the balance sheet date. Exchange gains and losses are recognised in equity through other comprehensive income as a separate currency translation reserve.

Fair value hedges Derivativefinancialinstrumentsenteredintoinordertoef-fectively hedge other assets and liabilities denominated in foreign currency are recognised in the balance sheet at the time they are entered into and are stated at fair value at the balance sheet date.

Anymarketvalueadjustmentsofderivativefinancialinstru-ments entered into to hedge other assets and liabilities are recognised in the statement of comprehensive income in the same line items as the transactions hedged.

Cash flow hedgesChangesinthepartofthefairvalueofderivativefinancialinstruments designated as and qualifying for hedging of futurecashflows,andwhicheffectivelyhedgechangesinthe value of the hedged item, are recognised in other com-prehensive income in a separate hedging reserve in equity. When the hedged transaction is realised, any gains or losses regarding such hedging transactions are transferred from equityandrecognisedinthesamefinancialitemasthehedged item. When proceeds from future borrowings are hedged, any gains or losses regarding hedging transactions are, however, transferred from equity over the maturity pe-riod of the borrowings.

Forward premiums or forward discounts on forward ex-change transactions are recognised in the income statement during their terms.

Other derivative financial instrumentsForderivativefinancialinstrumentswhichdonotmeetthecriteria for hedge accounting, changes in the fair value are recogniseddirectlyintheincomestatementunderfinan-cials.

INCOME STATEMENT

RevenueRevenue represents the value of services and goods deliv-eredandinvoicedsubscriptionsattributabletothefinancialperiod, and is recognised in the income statement if delivery and transfer of risk to the buyer have taken place before year-end, and if the income can be reliably measured and is expected to be received.

The value of services rendered is recognised on the basis of the delivered percentage of the total service.

Revenue from subscriptions is allocated to the income state-ment on a straight-line basis.

Revenuefromsalesofgoodsisrecognisedwhenthesignifi-cant risks and rewards of ownership have been transferred to the buyer.

Revenue is measured at the fair value of the agreed consid-eration excluding VAT and other taxes collected on behalf of third parties. All discounts granted are recognised in revenue.

Other operating incomeOther operating income represents revenue of a secondary nature relative to the Group’s principal activities, such as gains on the sale of assets and rental income.

Cost of sales and external assistanceCost of sales and external assistance represents costs in-curred and external assistance used to generate the year’s revenue.

Other external costsOther external costs include costs relating to operating and maintaining equipment and property as well as sales and administrative expenses.

Staff costsStaffcostsrepresentsalariesandwages,pensioncontribu-tions,socialsecuritycostsandotherstaffcosts.

Share of income after tax from associates, primary activitiesIncomefrominvestmentsinassociatesarerecognisedintheincome statement at the proportionate share of the results after tax and non-controlling interests of the associates and after elimination of the proportionate share of intra-group profits/losses.Totheextentthatprofitfromassociatesisderived from operations within the Group’s primary activi-

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ties,profitfromassociatesispresentedin”Operatingprofitbefore exceptional items”.

Share of income after tax from associates, secondary activitiesProfitfromassociatesaftertaxnotgeneratedfromopera-tions within the Group’s primary activities is recognised in theincomestatementonthelineitem”Profitfromfinan-cials”.

Financial income and expensesFinancial income and expenses represent interest income and interest expense, realised and unrealised capital gains andlossesandamortisationrelatedtofinancialassetsandliabilities. Dividends to capital holders who have received put options in connection with business combinations are recognisedasafinancialexpenseinthecaseswheretheop-tion price is independent of dividend payments. Financials are recognised at the amounts related to the year. Further-more, realised and unrealised gains and losses on derivative financialinstrumentswhichcannotbeclassifiedashedgingarrangements are included.

INCOME TAXES

FalckHoldingA/SandtheGroup’ssubsidiariesarejointlytaxedwithLundbeckfondInvestA/S,whichisthemanage-ment company for the national joint taxation and conse-quently settles all payments of income taxes with the tax authorities in respect of the jointly taxed companies and the Foundation’s other Danish subsidiaries.

Current Danish corporation tax is allocated among the jointly taxed companies according to the taxable income of these companies.

Incometaxfortheyear,consistingofcurrenttaxfortheyearandchangesindeferredtax,isrecognisedinprofitforthe year with respect to the part that can be attributed to profitfortheyearandinothercomprehensiveincomewithrespect to the part that can be attributed to other compre-hensive income or directly to equity.

Tax payablesCorporation tax payables include corporation taxes made up onthebasisofestimatedtaxableincomeforthefinancialyear and prior-year adjustments.

Deferred taxDeferred tax is calculated according to the balance sheet liabilitymethodandisbasedonalltimingdifferencesbe-

tween the carrying amount and the tax base of assets and liabilities.

Deferred tax is not recognised on goodwill that is not tax deductible, and deferred tax is not recognised on undistrib-utedprofitsinsubsidiariesandtimingdifferencesthataroseat the time of recognition in the balance sheet other than foracquisitions,ifsuchdifferenceswillnotaffectprofitortaxable income.

When alternative tax rules can be applied to determine the tax base, deferred tax is measured based on planned use of the asset or settlement of the liability respectively.

Deferred tax assets, including the tax base of tax loss carry-forwards, are recognised under other non-current assets attheexpectedvalueoftheirutilisation,eitherasaset-offagainsttaxonfutureincomeorasaset-offagainstdeferredtax liabilities within the same legal tax entity and jurisdic-tion.

Deferredtaxassetsandliabilitiesareoffsetwithinthesamelegal tax entity or jurisdiction. Deferred tax assets are meas-ured at the value at which they are expected to be realised.

Deferred tax is measured using the tax rate expected to applywhentimingdifferencesarereversed.Changesinde-ferred tax as a result of changes in tax rates are recognised in the income statement.

ASSETS

Non-current assets in generalIntangibleassetsandproperty,plantandequipment,exceptforgoodwillandotherintangibleassetswithindefiniteuse-ful lives, are measured at cost less accumulated impairment, amortisation and depreciation. Goodwill and intangible as-setswithindefiniteusefullivesaremeasuredatcostlessac-cumulatedimpairmentlosses.Impairment,amortisationanddepreciation are recognised in the income statement.

The basis of depreciation is calculated with due considera-tion to the asset’s residual value, reduced by any impairment losses. The residual value is determined at the date of ac-quisition and revalued each year. Where the residual value exceeds the carrying amount, the asset ceases to be depre-ciated or amortised.

Ifthedepreciationoramortisationperiodortheresidualvalueischanged,theeffectondepreciationoramortisa-

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tion going forward is recognised as a change in accounting estimates.

Cost includes direct costs related to the asset and the initial estimate of the costs related to dismantling and removing the item and restoring the site on which it is located, if the costsmeetthedefinitionofaliability.Costfurtherincludesborrowingcostsfromspecificandgeneralborrowingsdirectly relating to the acquisition, construction or develop-ment of the individual qualifying asset.

Where parts of an intangible asset or an item of property, plantandequipmenthavedifferentusefullives,theyareac-counted for as separate items.

Each year, the assets are reviewed in order to assess wheth-erthereareindicationsofimpairment.Ifsuchindicationsexist, the recoverable amount, determined as the higher amount of the fair value of the asset adjusted for expected costs to sell and the value in use of the asset, is calculated. The value in use is calculated based on the estimated future cashflows,discountedbyusingapre-taxdiscountratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecifictotheasset.

Iftherecoverableamountofanassetoritscash-generatingunit is lower than the carrying amount, an impairment charge is recognised in respect of the asset. The impairment loss is recognised in the income statement.

Inaddition,forgoodwillandotherintangibleassetswithindefiniteusefullives,impairmenttestsareperformedateach balance sheet date, regardless of whether there are anyindicationsofimpairment.Foracquisitions,thefirstimpairment test is performed before the end of the year of acquisition.

Impairmentlossesarereversediftherecoverableamountincreases.Impairmentlosseswillonlybereversedtotheextent that the value in use does not exceed the carrying amount of the asset if the impairment loss had never been charged.Impairmentlossesongoodwillarenotreversed.

Intangible assetsGoodwill is recognised in the balance sheet at cost on initial recognition as described under “Business combinations”. Goodwill is subsequently measured at cost less accumulated impairment losses. Goodwill is not amortised.

Intangibleassetsacquiredonacquisitionaremeasuredatcost less accumulated amortisation and impairment losses. Intangibleassetsacquiredonacquisitionsareamortised

over the expected economic life, estimated to be 3 to 10 years.

Other intangible assets are measured at cost including costs which can be directly or indirectly attributed to the assets in question less accumulated impairment, amortisation and depreciation.

Other intangible assets include software, etc. Software is amortised on a straight-line basis over the expected eco-nomic life, estimated to be 3 to 5 years. The economic lives of major administrative systems are estimated to be 8 years.

Property, plant and equipmentLand and buildings are measured at cost less accumulated depreciation and impairment of buildings.

Depreciation of buildings is calculated on a straight-line ba-sis over the expected useful lives of the assets, estimated to be between 25 and 33 years. Certain installations are depre-ciated over 10 years.

Leasehold improvements are depreciated on a straight-line basis over the term of the lease.

Otherfixturesandfittings,toolsandequipmentaredepreci-ated on a straight-line basis over the estimated useful lives of the assets. The expected useful lives are as follows:

Years

Vehicles according to category 5-12Otherfixturesandfittings,toolsandequipment 3-10Dispatch centres, radio systems, major administrative systems and networks 8OtherITequipment 3-5Fire extinguishers and similar equipment installed at customer locations 3-5

Assetsheldunderfinanceleasesarerecognisedunderprop-erty, plant and equipment and measured at the lower of the fair value and value in use of the future lease payments at the inception of the lease.

Assetsheldunderfinanceleasesaredepreciatedovertheestimated useful lives of the assets or, if shorter, over the lease term.

Gains or losses on the disposal or scrapping of property, plantandequipmentaredeterminedasthedifferencebetween the sales price less dismantling, selling and re-es-tablishing costs and the carrying amount. Any gains or losses

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are recognised in the income statement as other operating income or external expenses respectively.

AssociatesInvestmentsinassociatesintheconsolidatedfinancialstatements are measured using the equity method and recognised at the proportionate share of the equity of the relevant enterprise, made up according to the Group’s ac-counting policies, with the addition of values added on acquisition,includinggoodwill.Investmentsinassociatesare tested for impairment when there is an indication that the investment may be impaired. Associates with negative equityvaluearemeasuredatzerovalue.IftheGrouphasa legal or constructive obligation to cover the associate’s negative balance, such obligation is recognised under liabili-ties. Receivables from associates are measured at amortised cost. Provision is made for bad debts.

Joint arrangements Jointarrangementsareclassifiedaseitherjointoperationsor joint ventures based on the rights and obligations of the parties involved. Joint operations are recognised based on the Group’s share of income, expenses, assets and liabilities. Joint ventures are recognised at equity value in line with as-sociates.

InventoriesGoods for resale and consumables are measured at cost us-ingtheFIFOmethod.Wherethenetrealisablevalueislowerthan cost, inventories are written down to this lower value.

ReceivablesReceivables are initially recognised at fair value and subse-quently at amortised cost less provision for bad debts.

An impairment loss is charged when, based on an assess-ment of individual receivables and portfolios of receivables, there is objective indication of impairment. The assessment is based on the individual customer’s capacity to pay and history as well as calculations based on experience as to customer types, payment patterns and other factors which Managementfindsrelevant.

Ifatalaterpointitisfoundthattheimpairmentlossnolonger exists, the impairment loss is reversed in the income statement.

PrepaymentsPrepayments comprise prepaid costs, which are measured at amortised cost.

Securities and other investmentsListed securities and unlisted securities, which are currently allclassifiedasavailableforsale,arerecognisedatfairvalue,correspondingtotheofficiallyquotedpriceoflistedsecurities and estimated fair values based on current market data and generally accepted valuation methods for unlisted securities. Unrealised fair value adjustments are recognised directly in other comprehensive income, except for impair-ment losses, which are recognised in the income statement underfinancials.Onrealisation,theaccumulatedvalueadjustment recognised in other comprehensive income is transferredtofinancialsintheincomestatement.

EQUITY

DividendDividendthathasbeenfinallyadoptedisrecognisedasali-ability.

Hedging reserveHedge transactions that meet the criteria for hedging future cashflowsandforwhichthehedgedtransactionhasyettobe realised are recognised in equity through other compre-hensive income under the hedging reserve.

Foreign exchange adjustments relating to hedging transac-tions used to hedge the Group’s net investments in such en-tities are recognised in equity through other comprehensive income under the hedging reserve.

Currency translation reserveForeign exchange adjustments arising on the translation offinancialstatementsforentitieswhichhaveafunctionalcurrency other than DKK and foreign exchange adjustments relatingtofinancialassets,andliabilitiesrepresentingapartof the Group’s net investment in such entities are recog-nised in equity through other comprehensive income under the currency translation reserve.

On full or partial realisation of a net investment, foreign exchange adjustments are recognised in the income state-ment.

Non-controlling interestsTheproportionatesharesoftheprofitsandequityofsub-sidiaries attributable to non-controlling interests are recog-nised as a separate item under equity. On initial recognition, non-controlling interests are recognised as described under “Business combinations”.

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Put options issued as part of the consideration for business combinations are recognised as described under “Acquisi-tion and divestment of non-controlling interests” above.

Warrant programme, Executive Management BoardWarrants are issued at the market value on the date of grant. Payments received and made in relation to the war-rant programme are recognised in equity.

Share-based paymentWarrants granted are acquired at market value. The amount received is recognised as a liability in the balance sheet until the warrants are either bought back by the company, exer-cised or expire without being exercised. The market value of the warrants granted is estimated using an option pricing model. The calculation takes into account the terms and conditions of the warrants granted.

LIABILITIES

Pension obligationsMostoftheGroup’spensionagreementsaredefinedcon-tribution plans under which payments are made to external pension institutions. Contributions to such plans are recog-nised in the income statement in the period in which they are earned by the employees, and outstanding payments are included in the balance sheet under other payables.

Incertaincountries,theGrouphaspensionagreementsthataredefinedbenefitplans.Theseplansareeitherexternallyfunded, with the assets of the plans held separately from those of the Group in independently administered funds, or unfunded.Theliabilitiesrelatedtothedefinedbenefitplansare determined using the projected unit credit method.

An actuarial assessment is made annually to determine the presentvalueofthefuturebenefitstobepaidunderthedefinedbenefitplans.Thepresentvalueiscalculatedonthebasis of assumptions regarding future developments in the wageandsalarylevelaswellasinterest,inflation,pension-able age and mortality rates in the countries where such plansexist.Thepresentvalueiscalculatedonlyforbenefitsto which the employees have already earned the right dur-ing their employment with the Group until the present time.

The actuarial calculation of the pension obligation is rec-ognisedasaliabilityinthebalancesheet.Ifapensionplanconstitutes a net asset, the asset is only recognised to the extent that it equals future repayments under the plan, or if it will lead to a reduction in future payments under the plan.

Actuarial gains and losses arise mainly from changes in actuarialassumptionsanddifferencesbetweenactuarialassumptions and what has actually occurred, determined at the end of the year. Actuarial gains and losses are recog-nised directly in other comprehensive income.

Fordefinedbenefitplans,costschargedtotheincomestatement consist of current service cost, based on actuarial assessmentsandfinancialforecastsmadeatthebeginningof the year, including expected service cost, interest cost, expected return on plan assets and past service cost. The pastservicecostfortheenhancementofpensionbenefitsisaccountedforwhensuchbenefitsvestorbecomeacon-structive obligation.

Interestfrompensionassetsandliabilitiesisrecognisedun-derfinancials.

Othernon-currentemployeebenefitsaresimilarlyrecog-nised based on an actuarial calculation. However, all actuari-al gains and losses are recognised immediately in the income statement. Other non-current employee obligations include jubilee bonuses and non-current severance schemes.

ProvisionsProvisions are recognised when, as a consequence of an event occurring before or on the balance sheet date, the Group has a legal or constructive obligation and it is prob-ablethatanoutflowofresourceswillberequiredtosettlethe obligation. The amount recognised as a provision is Man-agement’s best estimate of the expenses required to settle the obligation.

Provisions for restructuring are recognised when a detailed, formal plan for the restructuring has been made before or on the balance sheet date and has been announced to the partiesinvolved.Inconnectionwithacquisitions,provisionsfor restructuring costs are only included in the computation of goodwill if an obligation exists for the entity acquired as of the date of acquisition.

Provisions are made for onerous contracts when the antici-patedbenefitstotheGroupfromacontractareoutweighedby the unavoidable costs under the contract.

When the Group is under an obligation to dismantle an as-set or re-establish the site where the asset has been used, a provision is made corresponding to the present value of the expected future costs. The provision is determined based on current orders and estimated future costs, discounted

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totheirpresentvalue.Thediscountfactorusedreflectsthe general level of interest rates. The present value of the costs is recognised in the cost of the item of property, plant and equipment in question and depreciated together with these assets.

The increase of the present value over time is recognised in theincomestatementunderfinancialexpenses.

Financial liabilitiesDebt to credit institutions, etc. is recognised at the raising of aloanatfairvaluelesstransactioncosts.Insubsequentperi-ods,financialliabilitiesaremeasuredatamortisedcost.

Residualleasecommitmentsfromfinanceleasesarerecog-nised at amortised cost.

Otherfinancialliabilitiesaremeasuredatamortisedcost.

Deferred incomeDeferred income primarily represents subscription revenue relatingtoseveralfinancialperiods.

Fair value measurementThe Group uses the fair value convention for certain dis-closurerequirementsandfortherecognitionoffinancialinstruments.Fairvalueisdefinedastheamountthatwouldbe received to sell an asset or paid to transfer a liability, respectively, in an orderly transaction between market par-ticipants.

Fairvalueisbasedontheprimarymarket.Ifnoprimarymar-ket exists, fair value will be based on the most advantageous market,definedasthemarketthatmaximisesthepriceofthe asset or liability less transaction and transport costs.

Inthedeterminationoffairvalue,theGroupuses,tothewidest possible extent, observable prices in active mar-ketsforidenticalinstruments(level1).Alternatively,otherobservable inputs are used, such as similar instruments in active markets or identical instruments in markets that are not active, or a valuation model based on other observable marketdata(level2).

To the extent that observable information is not available or cannotbeusedwithoutmaterialmodifications,theGroupuses generally accepted valuation methods based on all other inputs.

LEASING

Forfinancialreportingpurposes,leaseliabilitiesareclassi-fiedaseitherfinanceoroperatingleaseliabilities.

Leasesareclassifiedasfinanceleaseswhensubstantiallyallrisks and rewards of ownership of the leased asset are trans-ferred.Otherleasesareclassifiedasoperatingleases.

Theaccountingtreatmentofassetsheldunderfinanceleases and the related liability is described in the sections onproperty,plantandequipmentandfinancialliabilitiesrespectively.

Assets held under operating leases are not recognised in the balance sheet. Lease liabilities under operating leases are disclosed as contingent liabilities.

Lease payments concerning operating leases are recognised in the income statement on a straight-line basis over the term of the lease.

CASH FLOW STATEMENT

Thecashflowstatementispresentedaccordingtotheindi-rectmethodandshowsthecashflowfromoperatingactivi-ties,thecashflowfrominvestingactivities,thecashflowfromfinancingactivitiesandcashandcashequivalentsatthe beginning and end of the year.

Thecashflowstatementincludescashflowsfromcompa-niesacquiredasfromthedateofacquisitionandcashflowsfrom companies divested until the date of divestment.

Cash flow from operating activitiesCashflowsfromoperatingactivitiesincluderevenuelessoperating expenses and interest adjusted for non-cash oper-ating items and changes in working capital.

Cashflowsfromoperatingactivitiescomprisecashflowsrelated to special items and corporation tax.

Cash flow from investing activitiesCashflowsfrominvestingactivitiesincludecashflowsfromthe acquisition and divestment of companies, non-con-trolling interests and operations, the purchase and sale of intangible assets, property, plant and equipment and other non-current assets and the purchase and sale of securities not included in cash and cash equivalents.

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Enteringintoafinanceleaseisconsideredanon-cashtrans-action.

Cash flow from financing activitiesCashflowsfromfinancingactivitiesincludecashflowsfromchanges in share capital and related costs, purchases and salesoftreasuryshares,cashflowsfromdividends,cashflowsfrominterest-bearingdebtraisedandrepaymentthereof.

Cashflowsrelatingtoassetsheldunderfinanceleasesarerecognised as payment of interest and repayment of debt.

Cash and cash equivalentsCash and cash equivalents comprise cash and short-term marketable securities with a term of three months or less at thetimeofacquisitionwhicharesubjecttoaninsignificantrisk of changes in value.

Cashflowsincurrenciesotherthanthefunctionalcurrencyaretranslatedataverageexchangeratesunlessthesediffermaterially from the exchange rate ruling at the transaction date.

SEGMENT REPORTING

The segment information has been prepared in accordance with the Group’s accounting policies and is based on the in-ternal management reporting.

Segment income, expenses and assets comprise items that can be directly attributed to individual segments and items that can be allocated to the individual segments on a rea-sonable basis. Unallocated items are primarily assets and income and expenses relating to the Group’s administrative functions, income taxes and similar items.

Non-current assets in a segment comprise non-current as-sets used directly in the operation of the segment, including intangible assets, property, plant and equipment and invest-ments in associates. Current assets in a segment comprise current assets used directly in the operation of the segment, including inventories, trade receivables, other receivables, prepaid expenses and cash.

FINANCIAL RATIOS

Fordefinitionsoffinancialratios,seepage112.

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Notes to the balance sheet

7. Investment in subsidiary 96

8. Share capital 97

9. Deferred tax 97

10. Loans 97

11. Other payables 98

Notes to the cash flow statement

12. Net interest paid 98

Supplementary notes

13. Contingent liabilities, contractual

obligations and collateral security 98

14. Financial instruments 99

15. Related parties 102

16. Events after the balance sheet date 102

17. Accounting policies 103

Financial statements

Income statement 90

Statement of comprehensive income 90

Cash flow statement 91

Balance sheet 92

Equity statement 94

Notes to the income statement

1. Other operating income 95

2. Fees to auditors appointed

at the annual general meeting 95

3. Staff costs 95

4. Financial income 95

5. Financial expenses 96

6. Income taxes 96

Contents of the parent companyfinancialstatements

Management review




ContentMOD: INDHOLDSFORTEGNELSE

Incomestatementfor the year ended 31 December

Note DKK million 2015 2014 Dividend from subsidiary 400 300 1 Other operating income 8 8 2 Other external costs -3 -3 3 Staffcosts -19 -15

RESULT BEFORE FINANCIALS 386 290

4 Financial income 14 12 5 Financial expenses -73 -77

RESULT BEFORE TAX 327 225

6 Incometaxes 18 18

RESULT FOR THE YEAR 344 243

PROPOSED PROFIT ALLOCATION Proposed dividend - 225 Retained earnings 344 18

TOTAL 344 243

Statement of comprehensive income for the year ended 31 December

Note DKK million 2015 2014 Result for the year 344 243

Items that can be reclassified to the income statement Value adjustment of interest hedging instruments - -27 6 Tax on other comprehensive income - 7

Other comprehensive income after tax - -20

TOTAL COMPREHENSIVE INCOME 344 223

90 Falck Annual Report 2015 | ParentManagement review




Content

Parent | Falck Annual Report 2015 90

MOD: INCOME + COMPREHENSIVE

Cashflowstatement for the year ended 31 December

Note DKK million 2015 2014 Dividend from subsidiary 400 300 Total revenue 8 8 Total costs -22 -18

Result before financials 386 290 Change in intercompany balance with Group companies -413 -244 12 Net interest paid -50 -61 6 Incometaxesreceived 29 16

CASH FLOWS FROM OPERATING ACTIVITIES -48 1

Movements relating to shareholders -228 4 Interest-bearingdebtraised 275 - Repayment of interest-bearing debt - -4

CASH FLOWS FROM FINANCING ACTIVITIES 47 -

Change in cash and cash equivalents -1 1

Cash and cash equivalents at beginning of year 1 -

CASH AND CASH EQUIVALENTS AT YEAR-END - 1

Parent | Falck Annual Report 2015 91Management review




Content


MOD: CASH FLOW



Assets

7 Investmentinsubsidiary 7,802 7,802 Receivables from Group companies 778 539

TOTAL FINANCIAL ASSETS 8,580 8,341

TOTAL NON-CURRENT ASSETS 8,580 8,341

Tax receivables 16 29 Cash - 1

TOTAL CURRENT ASSETS 16 30

TOTAL ASSETS 8,596 8,371





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MOD: BALANCE



Equity and liabilities

8 Share capital 67 67 Hedging reserve -27 -27 Proposed dividend - 225 Retained earnings 6,254 5,913

TOTAL EQUITY 6,294 6,178

9 Deferred tax 2 3 10 Loans 2,264 1,980

TOTAL NON-CURRENT LIABILITIES 2,266 1,983

Payables to Group companies - 174 11 Other payables 36 36

TOTAL CURRENT LIABILITIES 36 210

TOTAL EQUITY AND LIABILITIES 8,596 8,371





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Equity statement

Share Hedging Proposed Retained 2015 DKK million capital reserve dividend earnings Total

Equity at 1 January 2015 67 -27 225 5,913 6,178 Equity movements in 2015 Value adjustment of interest hedging instruments - Tax on other comprehensive income -

Other comprehensive income - - - - - Result for the year 344 344

Total comprehensive income - - - 344 344

Purchase and sale of treasury shares, warrants, etc. - - - -3 -3 Dividend -225 -225

Total equity movements in 2015 - - -225 341 116

TOTAL EQUITY AT 31 DECEMBER 2015 67 -27 - 6,254 6,294

2014 DKK million

Equity at 1 January 2014 67 -7 - 5,891 5,951 Equity movements in 2014 Value adjustment of interest hedging instruments -27 -27 Tax on other comprehensive income 7 7

Other comprehensive income - -20 - - -20 Result for the year 225 18 243

Total comprehensive income - -20 225 18 223

Purchase and sale of treasury shares, warrants, etc. - - - 4 4

Total equity movements in 2014 - -20 225 22 227

TOTAL EQUITY AT 31 DECEMBER 2014 67 -27 225 5,913 6,178





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MOD: EQUITY

Notestotheparentcompanyfinancialstatements

Note DKK mio 2015 2014

1 Other operating income

Management fee from Group companies 8 8

Total other operating income 8 8

2 Fees to auditors appointed at the annual general meeting

Statutory audit -1 -1

Total fees to Deloitte -1 -1

3 Staff costs

Remuneration to the Executive Management Board -16 -11 Remuneration to the Board of Directors -2 -2

Total remuneration -18 -13

Otherstaffcosts -1 -2

Total staff costs -19 -15

Number of full-time employees 2 2

RemunerationtotheExecutiveManagementBoardincludesbothafixedsalaryandvariableremuneration.ThevariableremunerationisfixedonthebasisoftheGroup’sperformance.The members of the Executive Management Board and the Board of Directors do not receive contributions to pension plans.

The service contracts for the members of the Executive Management Board include severance periods which, in case of resignation by an executive, are 6 months and, in case of termination by the Company, are 12 months.

4 Financial income

InterestfromGroupcompanies 14 12

Total financial income 14 12





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MOD: NOTES



5 Financial expenses

Interestonloans -69 -73Otherfinancialexpenses -4 -4

Total financial expenses -73 -77

6 Income taxes

Current tax 16 18 Change in deferred tax for the year 1 - Prior-year adjustments - -

Total income taxes 17 18 Tax on other comprehensive income - 7

Total tax 17 25

Incometaxesreceived 29 16

Breakdown of tax rate: Total income taxes 17 18

Tax base for the year 327 225

Effective tax rate -5.4% -8.0%

Danish tax rate 23.5% 24.5%Non-deductible costs and tax-exempt income -28.7% -32.5%Other adjustments including adjustments relating to prior years -0.2% 0.0%

Effective tax rate -5.4% -8.0%

Tax on other comprehensive income Tax on value adjustments of interest hedging instruments - 7

Total tax on other comprehensive income - 7

7 Investment in subsidiary

Cost at 1 January 7,802 7,802 Additions - -

Cost at 31 December 7,802 7,802

Carrying amount at 31 December 7,802 7,802

Investmentinsubsidiaryrepresents100%ofthesharecapitalofFalckA/S.Thesharesarepledgedinsecurityofthecompany’sliabilities.





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MOD: SIDE 96



8 Share capital

The share capital is divided into 66,952,345 shares with a nominal value of DKK 1.00 each. The shares are fully paid up and are not divided into classes.

Thecompanywasfoundedon1April2011asaprivatelimitedcompany(ApS)withasharecapitalofDKK80,000.Thecompanywasconvertedintoapubliclimitedcompany(A/S)on5July2011, and on that occasion, its share capital was increased by DKK 67 million.

9 Deferred tax

Deferred tax at 1 January 3 -1 Change in deferred tax for the year -1 4

Deferred tax provisions at 31 December 2 -3

Deferred tax provision 2 3


Breakdown of deferred tax Non-current liabilities and provisions 2 3


10 Loans

Long-term loans 2,264 1,980 Short-term loans - -

Total loans 2,264 1,980

Breakdown by maturity Due within 1 year - - Due between 1 and 5 years 2,264 1,980 Due after 5 years - -

Total 2,264 1,980

Breakdown by currency DKK 2,264 1,980

Total 2,264 1,980





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MOD: SIDE 97



10 Loans (continued)

Interest reset period Within 3 months 1,983 1,980 After 12 months 281 -

Total 2,264 1,980

Thefiguressetoutabovedonotincludetheeffectofinterestrateswaps.Seenote28totheconsolidatedfinancialstatementsforadescriptionoftheGroup’srisksandcashresources.

Theeffectiveinterestratehasbeendeterminedat3.5%(2014:3.9%).

For debt with an interest reset period within 3 months, regular assessments are made of how long the interest period should be. As at the balance sheet date, the interest rate in DKK was fixedforonemonthandaveragedapproximately2.0%(2014:2.9%)duringthefinancialyear.Theinterestratehasbeendeterminedwithouttheeffectofinterestrateswaps.

DKK18million(2014:DKK16million)ofcapitalisedloancostshasbeendeductedfromthecar-rying amount of debt.

11 Other payables

Derivatives 36 36

Total other payables 36 36

12 Net interest paid

Financial income and expenses -59 -65 Change in amortised borrowing costs 1 4 Change in interest payable 8 -

Net interest paid -50 -61

13 Contingent liabilities, contractual obligations and collateral security

FalckHoldingA/SisjointlyandseverallyliablefortheGroup’soverallVATliabilitytogetherwiththeotherjointlyregisteredDanishcompanies.

Joint taxationFalckHoldingA/SistaxedjointlyinDenmarkwithLundbeckfondInvestA/Sasadministrationcompany.PursuanttotheDanishCorporationTaxAct,thecompanyisliablefromandincludingthefinancialyear2013forincometaxesetc.for the jointly taxed companies and from and including 1 July 2012 for any obligations to withhold tax at source on interest, royalties and dividends from the jointly taxed companies.





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MOD: SIDE 98


Note DKK million

14 Financial instruments

Interest rate riskTheinterestrateriskofFalckHoldingA/SismainlyaffectedbytheGroup’soverallfinancing.Basedonthecurrentmarketsituation,the Group’s Executive Management Board and the Board of Directors have decided to extend the existing interest rate swaps, so thatapproximately85%oftheoverallfinancingofFalckHoldingA/SisatfixedratesofinterestviainterestrateswapsthatexpireintheperioduntilJune2019.Therestoftheoverallfinancingisbasedonshort-terminterestrates.Forthisreason,FalckHoldingA/Sisonlytoaminorextentsensitivetofluctuationsinmarketinterestrates,andafluctuationby1%wouldchangetheinterestexpensefortheyearbyDKK3million(2014:DKK3million).Withoutthesehedges,afluctuationby1%wouldchangetheGroup’sinterestexpensebyDKK20million(2014:DKK20million).

Theinterestrateexposureishedgedbyinterestrateswapstotheeffectthatthebasicrateofinterestonthedebtcannotexceed3.1%(2014:3.1%)includingthecurrentinterestratemargin.

FalckHoldingA/Smonitorsdevelopmentsinmarketinterestratescloselyinordertobeabletoreactifthemarketsituationchanges.

Assumptions regarding sensitivity informationThesensitivitystatedhasbeendeterminedbasedontherecognisedfinancialassetsandliabilitiesasat31December2015.Noadjustment has been made for servicing and raising of debt or the like in 2015. Furthermore,itisassumedthatallhedgesoffloating-rateloansaredeemedtobeeffective.

Maturity analysis of financial assets and liabilitiesAssumptions applied in the maturity analysisThematurityanalysisisbasedonallundiscountedcashflows,includingestimatedinterestpayments.Interestpaymentsareesti-mated based on current market conditions.

Theundiscountedcashflowsfromderivativefinancialinstrumentsarepresentedgross,unlessthepartieshaveacontractualrightorobligation to settle net.

Due Contrac- Due between Due tual Total within 1 and 5 after 5 cash carrying Market Contractual cash flows including interest 2015 1 year years years flows amount value

Financial assets Receivables from Group companies - 778 - 778 778 778

Loans and receivables - 778 - 778 778 778

Derivativestohedgefuturecashflows 24 6 - 30 30 30

Financial assets used as hedging instruments 24 6 - 30 30 30

Total financial assets 24 784 - 808 808 808

Financial liabilities Loans 50 2,495 - 2,545 2,264 2,280

Financial liabilities measured at amortised cost 50 2,495 - 2,545 2,264 2,280

Derivativestohedgefuturecashflows 43 24 - 67 67 67


Total financial liabilities 93 2,519 - 2,612 2,331 2,347





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MOD: SIDE 99


Note DKK million


Due Contrac- Due between Due tual Total within 1 and 5 after 5 cash carrying Market Contractual cash flows including interest 2014 1 year years years flows amount value

Financial assets Receivables from Group companies - 539 - 539 539 539

Loans and receivables - 539 - 539 539 539

Derivativestohedgefuturecashflows 19 15 - 34 34 34Financial assets used as hedging instruments 19 15 - 34 34 34

Total financial assets 19 554 - 573 573 573

Financial liabilities Loans 48 2,168 - 2,216 1,980 2,000 Payables to Group companies 174 - - 174 174 174

Financial liabilities measured at amortised cost 222 2,168 - 2,390 2,154 2,174

Derivativestohedgefuturecashflows 33 37 - 70 70 70Financial liabilities used as hedging instruments 33 37 - 70 70 70

Total financial liabilities 255 2,205 - 2,460 2,224 2,244

Hedging and derivatives Thefairvalueoftheeffectivepartoftheoutstandingforeignexchangecontractsasat31Decemberusedashedginginstrumentsand qualifying for hedge accounting in respect of future transactions is recognised directly in equity until the hedged transactions are recognised in the income statement.

Interest rate swaps Bought Sold to subsidiaries

2015 2015

Hedged Market Hedged Market value value value value DKKinterestrateswap(fixedrate0.56%),expiresinJune2016 725 -3 725 3DKKinterestrateswap(fixedrate0.88%),expiresinSeptember2017 2,015 -37 300 5USDinterestrateswap(fixedrate1.14%),expiresinSeptember2017 464 -2 464 2EURinterestrateswap(fixedrate0.67%),expiresinSeptember2017 1,201 -20 1,201 20DKKinterestrateswap(fixedrate0.53%),expiresinJune2019 1,700 -5 - -

-67 30 Of which recognised in income statement - -

For future recognition -67 30





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Note DKK million


Interest rate swaps Bought Sold to subsidiaries

2014 2014

Hedged Market Hedged Market value value value value DKKinterestrateswap(fixedrate0.56%),expiresinJune2016 725 -9 725 9DKKinterestrateswap(fixedrate0.89%),expiresinSeptember2017 2,015 -35 300 2USDinterestrateswap(fixedrate1.14%),expiresinSeptember2017 441 -1 441 1EURinterestrateswap(fixedrate0.67%),expiresinSeptember2017 1,198 -23 1,198 22DKKinterestrateswap(fixedrate0.53%),expiresinJune2019 1,700 -2 - -

-70 34 Of which recognised in income statement - -

For future recognition -70 34

Methods and assumptions for the determination of fair values Interestrateswapsaremeasuredusinggenerallyacceptedvaluationtechniquesbasedonrelevantobservableswapcurvesandexchange rates.

2015

Quoted Non- market Observable observable Fair value hierarchy for financial instruments prices input input measured at fair value in the balance sheet (Level 1) (Level 2) (Level 3) Total Financial assets Derivativestohedgefuturecashflows - 30 - 30


Financial liabilities Derivativestohedgefuturecashflows - 67 - 67


2014

Quoted Non- market Observable observable Fair value hierarchy for financial instruments prices input input measured at fair value in the balance sheet (Level 1) (Level 2) (Level 3) Total Financial assets Derivativestohedgefuturecashflows - 34 - 34


Financial liabilities Derivativestohedgefuturecashflows - 70 - 70






Content




15 Related parties

FalckHoldingA/SissubjecttocontrollinginfluencebyLundbeckfondInvestA/S, Scherfigsvej7,DK-2100Copenhagen,Denmark,whichholds57.4%ofthesharecapital.LundbeckfondInvestA/SisownedbytheLundbeckFoundation. Falck Holding A/S has registered the following shareholders who hold 5% or more of the share capital:

LundbeckfondInvestA/S,Copenhagen 57.4% 57.4%KIRKBIInvestA/S,Billund 27.7% 27.7%LiberatioA/S,Copenhagen(ownedbythemembersoftheExecutiveManagementBoard) 10.3% 10.3%

Transactions with shareholders were as follows: Dividend -225 -Loans 275 -Interestonloans 7 -

The loans expires on 1 July 2019 and is subordinate to the Group’s syndicated loans.The balance at 31 December 2015 is DKK 282 million.

Other than as stated above, there were no transactions with these related parties duringthefinancialyear.

Asparentcompany,FalckHoldingA/ShasacontrollinginterestintheFalckGroup.

Trading with other Group companies was as follows: Management fee paid 2 2 Management fee received 8 8 Interestreceived 14 12

Management RelatedpartiesinFalckHoldingA/SwithsignificantinfluenceincludetheGroup’sExecutiveManagement Board and Board of Directors and their close relatives. Related parties also comprise companies in which these individuals have material interests.

Trading with executives was as follows:

Saleofwarrantsasdescribedinnote6totheconsolidatedfinancialstatements - 5Buy-backofwarrantsasdescribedinnote6totheconsolidatedfinancialstatements -1 -

FalckHoldingA/ShadnotransactionsduringthefinancialyearwiththemembersoftheExecutiveManagementBoard,BoardofDirectorsorotherpersonswithsignificantinfluenceother than the remuneration paid to executives as stated in notes 5 and 6 to the consolidated financialstatements.

16 Events after the balance sheet date

Noeventshaveoccurredafterthebalancesheetdatethathaveamaterialimpactonthefinancialpositionofthecompany.





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MOD: SIDE 102


Thecompany’sfinancialstatementsarepresentedinaccord-ancewiththeInternationalFinancialReportingStandardsas adopted by the EU and additional Danish disclosure re-quirements for the annual reports of large reporting class C companies.

IMPLEMENTATION OF NEW FINANCIAL REPORTING REGULATIONS

Referenceismadetonote32totheconsolidatedfinancialstatements.

ACCOUNTING POLICIES

The parent company basically applies the same accounting policies for recognition and measurement as the Group. The accounting policies applied by the parent company deviate from the accounting policies set out in note 32 to the con-solidatedfinancialstatementsinthefollowingrespects:

Dividend from group companiesDistributions of retained earnings in subsidiaries are rec-ognised as income in the income statement of the parent company in the year in which the dividend is declared. An impairment test is made if more than the comprehensive income of a subsidiary is distributed.

Investments in subsidiariesInvestmentsinsubsidiariesaremeasuredatcostinthepar-entcompanyfinancialstatements.Costincludestheconsid-eration at fair value plus direct acquisition costs.

Ifthereisanindicationofimpairment,animpairmenttestisperformed as described in the accounting policies applying totheconsolidatedfinancialstatements.Wherethecarryingamount exceeds the recoverable amount, the investments are written down to this lower value.

Intheeventofdistributionofotherreservesthanretainedearnings in a subsidiary, such distribution will be deducted from the acquisition price, if the distribution is in the nature of repayment of the parent company’s investment.

Note

17 Accounting policies





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MOD: SIDE 103


The Board of Directors and the Executive Management Board today considered and approved the annual report of Falck Holding A/Sfor2015.

TheannualreporthasbeenpreparedinaccordancewiththeInternationalFinancialReportingStandards(IFRS)asadoptedby theEUandadditionalDanishdisclosurerequirementsforannualreports.Inouropinion,theaccountingpoliciesappliedareappropriate,andtheGroup’sandtheparentcompany’sfinancialstatementsgiveatrueandfairviewoftheGroup’sandthe parentcompany’sassets,liabilitiesandfinancialpositionasat31December2015andoftheresultsoftheGroup’sandthe parentcompany’soperationsandcashflowsforthefinancialperiod1January-31December2015.

Furthermore,inouropinion,theManagement’sreviewincludesafairreviewofdevelopmentsintheoperationsandfinancialpositionoftheGroupandtheparentcompany,thefinancialresultsfortheyearandtheGroup’sandtheparentcompany’s financialposition.

We recommend the annual report to be approved by the shareholders at the annual general meeting.

Copenhagen, 11 March 2016

Executive Management Board:

Allan Søgaard Larsen Morten R. Pedersen President and CEO Deputy CEO

Board of Directors:

Peter Schütze Lene Skole Lars FrederiksenChairman Deputy Chairman

Karen Tay Koh Dorthe Mikkelsen Søren Thorup Sørensen



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MANAGEMENTS STATEMENT

To the shareholders of Falck Holding A/S

Report on the consolidated financial statements and parent financial statementsWehaveauditedtheconsolidatedfinancialstatementsandparentfinancialstatementsofFalckHoldingA/Sforthefinancialyear1 January - 31 December 2015, which comprise the income statement, statement of comprehensive income, balance sheet, state-mentofchangesinequity,cashflowstatementandnotes,includingtheaccountingpolicies,fortheGroupaswellastheParent.TheconsolidatedfinancialstatementsandparentfinancialstatementshavebeenpreparedinaccordancewithInternationalFinan-cial Reporting Standards as adopted by the EU and disclosure requirements of the Danish Financial Statements Act.

Management’s responsibility for the consolidated financial statements and parent financial statementsManagementisresponsibleforthepreparationofconsolidatedfinancialstatementsandparentfinancialstatementsthatgiveatrueandfairviewinaccordancewithInternationalFinancialReportingStandardsasadoptedbytheEUanddisclosurerequirementsof the Danish Financial Statements Act and for such internal control as Management determines is necessary to enable the prepara-tionofconsolidatedfinancialstatementsandparentfinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraud or error.

Auditor’s responsibilityOurresponsibilityistoexpressanopinionontheconsolidatedfinancialstatementsandparentfinancialstatementsbasedonouraudit.WeconductedourauditinaccordancewithInternationalStandardsonAuditingandadditionalrequirementsunderDanishaudit regulation. This requires that we comply with ethical requirements and plan and perform the audit to obtain reasonable assur-anceaboutwhethertheconsolidatedfinancialstatementsandparentfinancialstatementsarefreefrommaterialmisstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresintheconsolidatedfinancialstatementsandparentfinancialstatements.Theproceduresselecteddependontheauditor’sjudgement,includingtheassess-mentoftherisksofmaterialmisstatementsoftheconsolidatedfinancialstatementsandparentfinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalcontrolrelevanttotheentity’spreparationofconsolidatedfinancialstatementsandparentfinancialstatementsthatgiveatrueandfairviewinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of ac-countingestimatesmadebyManagement,aswellastheoverallpresentationoftheconsolidatedfinancialstatementsandparentfinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

Ouraudithasnotresultedinanyqualification.

OpinionInouropinion,theconsolidatedfinancialstatementsandparentfinancialstatementsgiveatrueandfairviewoftheGroup’sandtheParent’sfinancialpositionat31December2015,andoftheresultsoftheiroperationsandcashflowsforthefinancialyear1January-31December2015inaccordancewithInternationalFinancialReportingStandardsasadoptedbytheEUanddisclosurerequirements of the Danish Financial Statements Act.

Statement on the management reviewPursuant to the Danish Financial Statements Act, we have read the management review. We have not performed any further proce-duresinadditiontotheauditoftheconsolidatedfinancialstatementsandparentfinancialstatements.

Onthisbasis,itisouropinionthattheinformationprovidedinthemanagementreviewisconsistentwiththeconsolidatedfinancialstatementsandparentfinancialstatements.

Copenhagen, 11 March 2016

DeloitteStatsautoriseret Revisionspartnerselskab

Kirsten Aaskov Mikkelsen Erik Holst JørgensenState Authorised Public Accountant State Authorised Public Accountant

Independentauditor’sreports



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INDEPENDENT AUDITORS REPORT

Board of Directors, Executive Management Board and auditors

Lars Frederiksen, born 1958

Also on the boards of directors of: • MatasA/S(chairman)• Danish Committee for Good Corporate Governance (chairman)

• RockwoolInternationalA/S• WidexA/S• AugustinusIndustriA/S• HedorfA/S• Hedorf Foundation • PAIPartnersSA(supervisoryboardmember)

Søren Thorup Sørensen, born 1965CEOofKIRKBIA/S, KIRKBIInvestA/SandKoldingvej2,BillundA/S

Also on the boards of directors of: • K&CHoldingA/S(chairman)• BostonHoldingA/S(chairman)• TopdanmarkA/SandTopdanmarkForsikringA/S(chairman)• KIRKBIAG(vicechairman)• INTERLEGOAG(vicechairman)• LEGOA/S• LEGOJurisA/S

BOARD OF DIRECTORS

Peter Schütze, born 1948Chairman

Also on the boards of directors of: • DSB(chairman)• Nordea-fondenandNordeaBank-fonden(vicechairman)• SimCorpA/S(vicechairman)• TheDanishClimateInvestmentFundandTheDanish AgribusinessFund(chairman)

• Lundbeck Foundation• LundbeckfondInvestA/S• IndustrialBoardAxcelandAxcelFuture• Board Leadership Society in Denmark• Gösta Enboms Fond• DronningMargretheII’sArkæologiskeFond(chairman)• Member of The Systemic Risk Council

Lene Skole, born 1959Vice ChairmanCEO of Lundbeck Foundation and directorships in two subsidiaries

Also on the boards of directors of: • H.LundbeckA/S(vicechairman)• ALK-AbellóA/S(vicechairman)• DONGEnergyA/S(vicechairman)• TrygA/SandTrygForsikringA/S




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BOARD OF DIRECTORS EXE

• KIRKBIInvestA/S• Ole Kirks Fond• Koldingvej2,BillundA/S• Merlin Entertainments PLC

Karen Tay Koh, born 1960 Executive Director of Nutmeg ManagementCorporator of Northeastern University, Boston USA

Dorthe Mikkelsen, born 1967Senior Vice President, MSD

Also on the boards of directors of: • MerckSharp&DohmeB.V.• TheDanishAssociationofthePharmaceuticalIndustry (chairman)

• American Chamber of Commerce in Denmark

EXECUTIVE MANAGEMENT

Allan Søgaard Larsen, born 1956President and CEO

On the board of directors of:• AmbuA/S• The Confederation of Danish Enterprise• WelfareTech(chairman)• LøkkeFonden

Morten R. Pedersen, born 1968Deputy CEO

On the board of directors of:• Stibo Foundation

AUDITORS APPOINTED BY THE GENERAL MEETING

Deloitte Statsautoriseret RevisionspartnerselskabWeidekampsgade 6DK-2300 Copenhagen S

by/KirstenAaskovMikkelsenandErik Holst JørgensenState Authorised Public Accountants

TheBoardofDirectorsofFalckHoldingA/SphotographedtogetherwiththeemplooyeerepresentativesontheboardsofFalckA/SandFalckDanmarkA/S(JanHeineLauvring,HenrikVillsenAndersen,AllanRensgaardandVagnFlinkMøllerPedersen)




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Falck Holding A/SPolititorvet 1780 Copenhagen VDenmark

Tel.: +45 7033 3311

www.falck.comwww.falck.dk

CVR no. 33597045

Company information




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COMPANY INFORMATION

Legal entities in the Falck Group as at 31 December

The list below shows the Group’s significant subsidiaries and associates by geographical region.

Denmark Country Equity interest FalckHoldingA/S DenmarkFalckA/S Denmark 100.0%FalckDanmarkA/S Denmark 100.0%FalckHealthCareHoldingA/S Denmark 59.4%FalckHealthcareA/S Denmark 100.0%FalckHjælpemidlerA/S Denmark 100.0%VikTeamA/S Denmark 100.0%Sirculus ApS Denmark 55.0%FalckLægehuseA/S Denmark 100.0%QuickCareA/S Denmark 100.0%ActivCareA/S Denmark 100.0%FalckSafetyServicesA/S Denmark 100.0%ResponceA/S Denmark 100.0%GlobalLifeCareA/S1) Denmark 40.0%KPCEjendommeaf6.juni2002A/S1) Denmark 25.0%

Nordic region Country Equity interest

Falck Ensihoito Oy Finland 100.0%Falck Oy Finland 100.0%9Lives Oy Finland 100.0%9Lives Pirkanmaa Oy Finland 100.0%Falck Health Care Norge AS Norway 100.0%Falck Redning AS Norway 100.0%Falck Emergency Norway AS Norway 100.0%Falck Nutec AS Norway 100.0%Falck Aktiv Arbetsmedicin AB Sweden 100.0%Falck Healthcare AB Sweden 100.0%Skandinavisk Hälsovård AB Sweden 100.0%Svensk Närsjukvård AB Sweden 100.0%Doc Care AB Sweden 100.0%Ofelia Vård AB Sweden 100.0%AB Previa Sweden 100.0%Falck Hälsopartner AB Sweden 100.0%Falck Räddningskår AB Sweden 100.0%Falck Försäkringsaktiebolag Sweden 100.0%Falck Global Assistance AB Sweden 100.0%Falck Ambulans AB Sweden 95.1%Falck Services AB Sweden 100.0%Falck Secure AB Sweden 100.0%

Europe Country Equity interest Falck Fire Services BE NV Belgium 100.0%Falck Safety Services Belgium BVBA Belgium 100.0%Falck Emergency a.s. Czech Republic 100.0% Falck Autoabi OÜ Estonia 100.0%Falck France SAS France 65.0%Fineta SAS France 42.0%G.A.R.D. Beteiligungsgesellschaft für Ambulanz und Rettungsdienst mbH Germany 100.0%Kranken-Transport Herzig GmbH Germany 100.0%FalckServiziIndustrialidiEmergenzaS.r.l. Italy 65.0%UAB Altas Assistance Lithuania 100.0%




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LEGAL ENTITIES

Falck B.V. Netherlands 100.0%FalckConsulting&TechnologyB.V. Netherlands 100.0%Falck Fire Services NL B.V. Netherlands 100.0%Safety Center Zuid Holland c.v. Netherlands 52.0%Falck Prevention B.V. Netherlands 100.0%Falck Nutec B.V. Netherlands 100.0%Falck Russia Holding B.V. 1) Netherlands 49.0%Falck Medycyna Sp. z o.o. Poland 100.0%Starowka Sp. z o.o. Poland 76.0%FalckSCIPortugal-SegurancaContraIncêndios,SA Portugal 100.0%Falck Fire Services S.R.L Romania 92.5%MoPi.ch GmbH Schwitzerland 100.0%Käch Falck AG Schwitzerland 60.0%Falck Záchranná a.s. Slovakia 100.0%Falck Healthcare a.s. Slovakia 100.0%Falck Fire Services a.s. Slovakia 100.0%FalckSCI,S.A. Spain 65.0%Falck VL Servicios Sanitarios, S.L. Spain 75.0%Falck Global Assistance Spain S.L. Spain 100.0%FalckYarginHizmetleriLimitedŞirketi Turkey 100.0%Falck Onsite Limited UK 100.0%Medical Services Limited UK 51.0% Falck Fire Consulting Limited UK 92.6%Falck Fire Services UK Limited UK 100.0%

North America Country Equity interest Falck Safety Services Canada Ltd. Canada 55.0%AlfordServices,Inc USA 100.0%AlfordSafetyServices,Inc USA 100.0%CareAmbulanceService,Inc. USA 100.0%LifestarResponseofAlabama,Inc. USA 100.0%LifestarResponseofMaryland,Inc. USA 100.0%AccessTransportServicesHolding,Inc. USA 100.0%CapeCodMedicaEnterprises,Inc USA 100.0%AmericanAmbulance,Inc. USA 100.0%FalckSoutheastIICorp. USA 96.3%Falck Northern California Corp. USA 86.7%Falck Northwest Corp. USA 100.0%FalckRockyMountain,Inc. USA 100.0%Rapid Response Emergency Services, LLC USA 100.0%Pulse EME, LLC 1) USA 50.0%

Latin America Country Equity interest Falck Nutec Brasil Treinamentos em Segurança Marítima Ltda Brazil 100.0%FalckFire&SafetydoBrasilS.A. Brazil 65.0%Falck Safety Services Limitada Chile 100.0%Servicio Emergencias Regional SER S.A. Colombia 100.0%BHMSolucionesIntegralesdeLogisticaenSaludS.A.S. Colombia 80.0%HacesInversionesyServiciosS.A.S Colombia 80.0%EmpresadeMedicinaIntegralEMIS.A.ServiciodeAmbulanciaPrepagada-GrupoEMIS.A. Colombia 100.0%EMIEcuadorS.A.-EmergenciaMedicaIntegral Ecuador 100.0%EMIElSalvadorS.A.deC.V. ElSalvador 100.0%FalckSafetyServicesdeMéxico,S.A.P.I.deC.V. Mexico 55.0%EMICentralAmericaHoldingS.A. Panama 90.0%

Europe (continued) Country Equity interest

Legal entities in the Falck Group asat31December(continued)




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Legal entities in the Falck Group asat31December(continued)

EMIPanamaS.A. Panama 100.0%FalckNutecTrinidadandTobagoLimited Trinidad&Tobago 80.0%UCM Uruguay S.A. Uruguay 100.0%EmergenciaMedicaIntegralEMICentroS.A. Venezuela 100.0%

Rest of the world Country Equity interest Falck Pty Ltd. Australia 53.4%Falck Caspian Safe LLC Azerbaijan 65.0%FalckGlobalAssistance(China)Limited China 100.0%FalckIndiaPvt.Ltd.(India) India 100.0%Open Clinic LLP Kazakhstan 80.0% Falck Prime Atlantic Limited Nigeria 51.0%Falck Safety Services LLC Qatar 49.0%MSTSAsia(S’pore)Pte.Ltd. Singapore 100.0%FalckNutec(Thailand)Ltd. Thailand 65.0%Falck Safety Services LLC United Arab Emirates 49.0%Falck Medical Services LLC United Arab Emirates 49.0%Falck Nutec Vietnam Limited Vietnam 88.0%

(1) Associates and joint ventures

The full Group structure is available at www.falck.com

Latin America (continued) Country Equity interest




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http://www.falck.com

Definitionsofratios

The ratios are basically calculated on the basis of the annual report and the Group’s accounting policies. The Falck Group cal-culatesanumberofratiosonthebasisofthefinancial-highlightfiguresin“Financialhighlightsandkeyratios”onpage2.Thedefinitionsofthoseratiosarestatedbelow.

Organic growthGrowth in external revenue in local currency relative to the pre-ceding year adjusted for:

• Acquisitions: Revenue relating to acquired entities or op-erations generated in the current year is not included. For entities or operations acquired in the preceding year, revenue generated in the current year is only included from the time when revenue is recognised in the comparative period for the preceding year.

• Divestments: Revenue from the preceding year relating to entities or operations divested in the preceding year is not included. For entities or operations divested in the current year, revenue from the preceding year is only included for the comparative period of the current year.

• Contracts: Material contracts entered into before or during the year after the acquisitions, where Falck has had a mate-rial impact on the contract in question, are recognised in revenue and considered organic growth. Any material isolated operations which Falck terminates or public-sector custom-ers’ insourcing of tasks without invitations for tender are considered divestments.

• Redefinitionofsegments:Revenuerelatedtoentitiesthatareredefinedtoanothersegmentisaccountedforasacquisi-tions and divestments, as the case may be, in the respective business segments.

EBITAOperatingprofitbeforecostsandimpairmentandamortisationfrom acquisitions.

EBITDAEBITAbeforeimpairment,amortisationanddepreciation.

EBITA marginEBITAasapercentageofrevenue.

Normalised profit after taxProfitfortheyearbeforecosts,impairmentandamortisationfrom business combinations and tax thereon and similar non-recurring items.

Equity ratioTotal equity at year-end as a percentage of equity and liabilities at year-end.

Return on equityProfitfortheyearattributabletoFalckasapercentageofaver-age equity excluding non-controlling interests.

Normalised return on equityNormalisedprofitaftertaxattributabletoFalckasapercentageof average equity excluding non-controlling interests.

Working capitalTrade receivables and other current operating assets less trade payables and other operating liabilities.

Net operating assets excluding goodwillNetoperatingassetsexcludinggoodwillaredefinedasworkingcapital plus property, plant and equipment and intangible as-sets(excludinggoodwill)andoperatingprovisions.

Free cash flowEBITAadjustedfornon-cashoperatingitemsandchangeinnetoperating assets excluding goodwill.

Net interest-bearing debt to EBITDANet interest-bearing debt and purchase consideration payable toEBITDA.EBITDAhasbeennormalisedforthefull-yeareffectof acquisitions made.

Cash conversion rateFreecashflowasapercentageofEBITA.TherateofEBITAtothefreecashflow(cashconversionrate)showstheGroup’sabilitytogeneratecashflowsfromoperatingactivitiesafterinvestments in intangible assets and property, plant and equip-ment and cash that must be tied up in working capital in order to generate growth.

Design and graphic production: MeyerBukdahl




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DEFINITIONS OF RATIOS

Falck Holding A/SPolititorvet1780 Copenhagen VDenmark

Tel.: +45 70 33 33 11www.falck.comwww.falck.dkCVR no. 33 59 70 45




Content Management review

Documents

Annual Report 2015Group | Falck Annual Report 2015 3 Falck takes its responsibility seriously Helping other people is a huge responsibility: it requires willingness to collaborate,