LETT in brief 2013

LETT in briefLETT Law Firm

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LETT's valuesLETT is a modern and innovative law firm based on noble traditions and long experience. We are proud of our professionalism, which is an integrated part of our client approach.

Our values constitute the guidelines for how we act in our daily work. In addition, they constitute a promise to our clients of our approach and conduct:

DecentWe assume responsibility for our assignments and attach great importance to ethics and responsibility.

Top standardsOur business is based on first-rate professional expertise and quality. We are ambitious and dedicated on behalf of LETT and our clients to obtaining the best possible results.

DynamicWe bring great commitment to any assignment and see solutions where others see problems.

UnpretentiousWe meet our clients and colleagues at eye level in an informal daily working environment, which is also characterised by a good sense of humour.

Straight-forwardWe are always approachable and attach great importance to being personal and open.

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2013 - a new beginningOver recent years, LETT has developed impressively and our strategic goal is to be the obvious choice of the Danish business and public sectors.

As an important part of gearing LETT to the next step in our development, we decided in 2013 to change our management model and create a more simple and agile management structure. The outcome of this change was that I was appointed Managing Partner.

This marks a new beginning for us.

This new beginning is an opportunity to offer more insight into LETT to our most frequent con-tacts - clients, employees, colleagues in law businesses and other consultancy businesses as well as future employees. Knowledge is the core of our legal assistance and to be approachable, personal and straight-forward constitutes a great part of our values. With this publication we wish to share our knowledge about our firm in words and figures.

Henrik SjørslevManaging Partner LETT

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The obvious choice for the business and public sectors

LETT anno 2014 was established less than 10 years ago. Since that time, we have grown and now rank among the leading law firms in Denmark with offices in Copen-hagen and Aarhus.

Our primary focus is legal advice to both the business and public sectors totalling in aggregate more than 90% of our business. Our aim is to provide high-quality advice within all important legal areas and legal issues that are of relevance to these sectors.

By tradition, we have a strong position within ia insurance and tort law as well as litigation and arbitration. According to a survey carried out in 2012 by the weekly Danish financial newsletter Økonomisk ugebrev, LETT is the preferred litigation law firm of the Danish business sector. To ensure the necessary width and depth in our other practice areas, LETT has in recent years - as a supplement to our organic growth - consolidated our business within strategic areas by part-ners from the small, specialised law firms NORDIA and Lind Cadovius and by leading lawyers Kurt Bardeleben and N.E. Nielsen. This has enhanced LETT considerably within the areas M&A, insolvency, procurement law and competition law.

New market conditionsOur market continues to change these years - after 10 years of continued growth, 2013 saw a 8% decline in the demand for legal advice; we see increased internationalisation of the business sector and, in general, companies tend to enhance their internal legal competences, and our traditional price structures are becoming challenged.

In LETT, we expect this trend to continue. No one can sit back and wait for the past to return.

Largest law firms in Denmark

Pursuing growthMeasured by the number of employees, LETT ranks as number 6 in 2014 on the list of Danish law firms, with the exception of chain cooperations. Our declared goal is to continue growth and to be the obvious choice of the Danish business and public sectors.

Ranking (Measured by no of lawyers and junior lawyers)

Law firm(*= chain cooperation)

Lawyers and junior lawyers2014

Partners2014

Total staff members2014

1 (1) Kromann Reumert 270 67 507

2 (2) Bech-Bruun 263 77 516

3 (3) Gorrissen Federspiel 211 42 395

4 (4) Plesner 178 64 359

(5) Advodan* 178 93 481

5 (6) Poul Schmith/Kammeradvokaten 175 37 353

(7) Ret & Råd* 150 i.o. 400

6 (8) LETT 146 49 263

7 (9) Horten 113 43 204

8 (10) Bruun & Hjejle 102 31 171

Figures from the Danish Berlingske Business 01, 24 January 2014

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A new reality in the Danish law business is being created, and we believe that future success depends on our capacity to adapt to this new set of ground rules.

Continued growthFrom a commercial aspect, we see a strong international profile, specialised advice and proac-tive business development as some of the important cards to be played by LETT.

A stronger international profileIn LETT, we have always attached importance to having an international profile and we feel a need to put further focus on this area. This will ia imply that several young lawyers from LETT will be seconded to international law firms and we will seek to increase the number of interna-tional matters.

Increased specialisationAnother aspect of market developments is the need for specialisation. Large and medium-sized enterprises have established their own in-house legal functions to be in charge of ongoing legal assignments, whereas assignments to a law firm like LETT are increasingly complex. Our reac-tion is to develop even more clear-cut lawyer profiles having distinct specialities within eg a practice area or a sector. At the same time, we are to major in understanding the commercial reality of our clients. Clearly defined career trails, new annual performance reviews and partner development, which will be accounted for on the next pages, are important links in this process.

New practice areasA third focus area is the general development in Danish society and business life that may open up future practise areas to us. One example is public investments, including PPP and PPC, which we soon discovered as a new practice area. Similarly, we see a number of other businesses undergoing considerable developments these years. We are to ensure our ability to react swiftly and invest in breeding the right specialities and carrying out the right profile on the market.

OutlookFollowing several years characterised by cautiousness and reluctance within the M&A area, we are pleased to see progress within this area in LETT. During 2013, we participated in a number of transactions - we assisted ia Danish AMBU in its corporate-bond issue and advised Danish pension companies ATP and PFA on their share purchases in DONG Energy. We expect increased activity within this area in 2014 - a year where the top priority on corporate agendas includes growth, value creation and development.

As a result of recent years' crisis, assignments within insolvency and reconstructions, including the Cimber-Sterling bankruptcy, the reconstructions of Danish product tanker Torm and Danish Super League football club Brøndby IF, gave scope for quite a substantial work flow in LETT. De-spite a more stable economic outlook within the Danish corporate sector in general, we expect continued activity within this area, and one reason is that, in 2013, LETT was appointed one of the trustees in the bankrupt estate of the Danish construction group Pihl & Søn.

We have extensive experience in providing legal advice to the public sector; we have through many years been lawyers to a number of municipalities, assisted the Greenland Self-Govern-ment and advised regions and utilities on a regular basis. In 2013, we made our mark on the municipal area when we were appointed one of the two permanent lawyers to the City of Co-penhagen. A strategic goal of LETT is to increase our market shares within these areas. A result of this is that we have put together our competences within public law in our new department "Competition, procurement, public law and natural resources".

Public private partnerships were put on the agenda in Denmark about 10 years ago. LETT has been involved in practically all the projects that have been put up for tender within the partner-ship model so far. We expect a PPP-project breakthrough during the years to come and consider PPP/PPC to be one of our growing practice areas.

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A strong team of dedicated and competent people

As in any knowledge firm, people represent the pivotal resource in LETT. Therefore, in LETT, it is a top priority that our partners and employees constitute a strong team and that, all the time, they are in the process of a professional and personal develop-ment that matches the changing needs reflected by market trends, client demands and technology.

As a law firm, we are completely dependent on our employees being up-to-date with amend-ments in acts, rules and frameworks that are relevant in our legal advising. The majority of the professional development forms part of the daily case handling in a combination with instructions, sparring and feedback from the partner in charge or functional manager.

As part of the professional as well as the personal development, a number of our em-ployees are seconded to one or more of our clients, and LETT lawyers are also regularly on secondment to leading international law firms.

We supplement this experience-based instruc-tion by formal instruction activities, which, for our lawyers, include further training and re-search, participation in internal and external courses, etc.

We attach great importance to concurrently focusing on personal development, and this is supported via the performance-review con-cept, coaching, development processes, men-tor programmes, etc.

High employee satisfaction in LETTWe carefully follow up on our employee sat-isfaction by internal climate analyses, which are carried out on a regular basis. As a re-sult of these analyses, we get both a picture of the general climate and specific inputs to improvements of managerial efforts and the cooperation in and across job functions and office locations.

Our most recent climate analysis was car-ried out at the end of 2012 and 85% of our employees participated. The analysis showed that, in general, employee satisfaction is high

Employee distribution at LETT

At year-end 2013, we were 285 people at LETT of whom just above half - 147 - were lawyers.

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51%

12%

20%

17%

Jurister

Trainees/stud.jur.

Sekretærer

Administration

Lawyers

Trainees/law students

Secretaries

Administration

Gender distribution at LETT

At year-end 2013, 38% of our lawyers were women, whereas 53% of our junior lawyers were women. So, we employ a large number of women junior law-yers, however, not unlike the rest of the sector, we experience a decline later on in their career. One of our goals is to retain a higher number of women lawyers and have ia increased flexibility focus within each employment relationship. The career-trail pro-ject, referred to on the following page, is to help ensure that more women lawyers stay with LETT to continue their career and also hold management posts. Our career-trail model will be launched in 2014 and is expected over time to have a positive effect on the gender distribution at LETT. This positive effect will be crucial as to whether our goal can be achieved in terms of an executive com-mittee of which 20% are women within a five-year period and of which 40% are women within a ten-year period.






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Women38%

Men62%

Source: LETT

Source: LETT

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and that vital factors such as duties, competences, colleagues, views on LETT as a place of work and basic managerial aspects scored high. The analysis also showed that two of our most important focus areas are to enhance our daily management efforts and to structure personal and professional development. These areas have been approached via our career-trail project and partner-development process.

Management by partner developmentManagement is on our partners' agenda both in order to enhance our daily management efforts and because we consider good management a catalyst for cooperation and business develop-ment. This particular partner-development process was initiated during the summer of 2013 and our aim is to promote dialogue on management and increase individual management com-petences by mobilising tools for self-development.

Clearly defined career trailsDuring the autumn of 2012, we set up our career-trail project whose object is to create clearly defined career trails in LETT and to describe the various development opportunities which our firm offers as well as the resulting requirements relating to competence and performance.

The major object of this project is to ensure that LETT is an attractive place of work - now and for the future. Therefore, this project has been deeply embedded within our management, HR and our employees, and a mixed group of law students as well as trainees, junior lawyers and lawyers have participated via workshops.

The project outcome is LETT's career-trail model which reflects different lawyer profiles. This model is incorporated in our revised performance-review concept as a management and dia-logue tool and ensures ia focus on targeted competence development and specialisation.

Law students of new attitudesSince 2008, Danish Lawyers' Association has arranged for a reputation analysis among Dan-ish law students. Compared to the previous analysis carried out in 2010, LETT is the law firm that has advanced the most - of which we are very proud. According to this reputation analysis, law students are becoming more and more aware of LETT. The reputation analysis measures the four fields; working conditions, professional development, performance and management and ethics. Our strongest field in the analysis is professional development. Within this field, our score is 73.6% advanc-ing from 66.2% in 2010 and higher than the 2013 sector average of 71.0%.

The analysis suggests that focusing on perfor-mance and management as well as working conditions are two major fields which would benefit us in order to boost our general repu-tation. Within both fields we have advanced, compared to the analysis in 2010, and our scores are 59.6% and 57.8% respectively - the general level of the entire sector.

As regards potential employees, we continue to work determinedly with employer branding to ensure that particularly law students become aware of LETT's business and development and consider our firm an attractive place of work. In 2014, our particular focus is on LETT career trails and the competences that we find are those to be developed in future lawyers.

Awareness ratio of LETT increasing year by year

In 2013, 83% of the questioned law students answered that they know LETT well or somewhat. When they describe LETT, law stu-dents generally use terms as Reputable, Professionally strong and Variation in practice areas.






0

10

20

30

40

50

60

70

80

90

100

2008 2009 2010 2013

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Source: The Danish Lawyers' Association, reputation analysis

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Financial highlights

Key financial figures

ResultsNet turnoverProfit from ordinary operating activitiesProfit before financial income and expenses, netProfit from financial income and expenses, netNet profit for the year

2013

DKK'000

367.28617.98517.985-4.30213.684

Balance sheetBalance sheet totalEquity

326.14076.192

Cash flowsCash flows from:- operating activities- investing activities

of which investment in tangible fixed assets- financing activitiesChange in cash and cash equivalents for the year

Average number of full-time staff membersAverage number of staff members employed

28.017-1.267

-506-12.97513.775

256285

Financial ratios in %Gross margin ratioProfit marginReturn on capital employedSolvency ratioReturn on equity

78,0%4,9%5,5%

23,4%19,7%

LETT in figures

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Profit and loss account 1 January – 31 December

Note 2013

DKK

Net turnover 367.286.213

Other external expenses -80.632.768

Gross profit 286.653.445

Staff costs 2 -266.460.301

Depreciation, amortisation and write-downs for tangible as well as intangible fixed assets -2.207.763

Profit before financial income and expenses, net 17.985.381

Financial income 255.348

Financial expenses -4.557.177

Net profit for the year 13.683.552

Distribution of the profit for the year

Proposal for distribution of the profit for the year

Proposed dividend for the financial year 0

Retained profit 13.683.552

13.683.552

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Balance sheet as at 31 December – Assets

Note 2013 1/1 2013

DKK DKK

Other fixtures and fittings, tools and equipment 1.297.569 1.891.525

Leasehold improvements 1.257.376 2.217.078

Tangible fixed assets 3 2.554.945 4.108.603

Participating interests in subsidiaries 4 0 53.660

Other debtors 6.823.769 6.008.482

Fixed asset investments 6.823.769 6.062.142

Fixed assets 9.378.714 10.170.745

Trade debtors 148.125.172 187.373.447

Contract work in progress 72.092.060 58.408.508

Amounts owed by group enterprises 0 1.240

Contributed capital in arrears 0 200.000

Other debtors 2.595.369 8.687.445

Prepayments and accrued income 4.526.523 6.626.509

Debtors 227.339.124 261.297.149

Cash at bank and in hand 89.422.281 75.647.486

Current assets 316.761.405 336.944.635

Assets 326.140.119 347.115.380

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Balance sheet as at 31 December – Assets

Note 2013 1/1 2013

DKK DKK

Other fixtures and fittings, tools and equipment 1.297.569 1.891.525

Leasehold improvements 1.257.376 2.217.078

Tangible fixed assets 3 2.554.945 4.108.603

Participating interests in subsidiaries 4 0 53.660

Other debtors 6.823.769 6.008.482

Fixed asset investments 6.823.769 6.062.142

Fixed assets 9.378.714 10.170.745

Trade debtors 148.125.172 187.373.447

Contract work in progress 72.092.060 58.408.508

Amounts owed by group enterprises 0 1.240

Contributed capital in arrears 0 200.000

Other debtors 2.595.369 8.687.445

Prepayments and accrued income 4.526.523 6.626.509

Debtors 227.339.124 261.297.149

Cash at bank and in hand 89.422.281 75.647.486

Current assets 316.761.405 336.944.635

Assets 326.140.119 347.115.380

Balance sheet as at 31 December – Equity and liabilities

Note 2013 1/1 2013

DKK DKK

Share capital 4.100.000 4.100.000

Retained profit 72.092.060 58.408.508

Equity 1 76.192.060 62.508.508

Subordinate loan capital 36.255.714 34.625.714

Long-term liabilities other than provisions 5 36.255.714 34.625.714

Trade creditors 5.078.057 6.108.506

Amounts owed to partners 147.196.619 160.171.355

Other creditors 6 61.417.669 83.701.297

Current liabilities other than provisions 213.692.345 249.981.158

Creditors 249.948.059 284.606.872

Equity and liabilities 326.140.119 347.115.380

Contingencies and other financial commitments 9

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LETT's management structure

LETT Law Firm P/S is owned and operated by its partners. Our management structure comprises the owners, the Execu-tive Committee and a Managing Partner elected for a period of three years to be in charge of the overall management. The management structure also includes a number of heads of legal departments in charge of expertise, budget and resources relating to the relevant department. The management is supported by a staff including the staff functions of Business Development, Finances, IT, HR and Operations and Service.

Owners

Anders Nielsen Georg Lett Jan Snogdal Michael Holsting Rasmus Nørgaard Bek

Anne Troelsen Gert Nissen Jens Krogh Petersen N.E. Nielsen René Offersen

Artur Bugsgang Hans Madsen Jes A. Rosenvinge Niels Henrik Nielsen Sebastian Ingversen

Carsten Henriksen Henrik Puggaard Jørgen Flodgaard Per Astrup Madsen Søren Brinkmann

Carsten Lorentzen Henrik Sjørslev Kurt Bardeleben Per Vestergaard Pedersen Søren Jenstrup

Claus Holberg Jacob Christiansen Line M. Pedersen Pernille Sølling Søren Zinck

Finn Overgaard Jan Bech Marlene Winther Plas Peter Rønnow Thomas Bang

Flemming Kragh Hansen Jan Børjesson Martin Lavesen Peter Schäfer Torben Mauritzen

Torkil Høg

Executive Committee

Flemming Kragh Hansen

(chairman)

Henrik Puggaard

Jan Børjesson

Kurt Bardeleben

Martin Lavesen

Managing Partner

Henrik Sjørslev

Legal departments

Corporate M&A Insolvency and

restructuring

Dispute resolution Real estate Competition, procurement,

public law and natural re-

sources

M&A Insolvency Litigation and arbitration Construction law Procurement law

Capital markets, banking

and finance

Reconstruction Insurance and tort law Business properties Public law

Estates of deceased

persons

Employment law PPP/PPC EU- and competition law

Tax law Lease law Natural resources

IT and digitalisation Debt collection Mortgage debt collection

Energy law Environmental law

Sebastian Ingversen Jan Bech Thomas Bang Line M. Pedersen Torkil Høg

Rasmus Nørgaard Bek Carsten Lorentzen Carsten Henriksen

Staff functions

HR, IT and Operations

and Service

Finances Business Development

Thomas Munk-Larsen Tine Thornval Charlotte Sørrig Zahll Larsen

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Social responsibility

In 2012 when LETT joined UN Global Compact, it was a natural step in a social com-mitment that is deeply embedded in our firm. To join this compact means that, in a global context, we are duty-bound to respect the 10 principles that ia include human rights, labour, environment and climate as well as anti-corruption.

CSR strategyLETT is proud to be part of Global Compact, however, our community engagement extends much further.

We wish to contribute and enhance where we can make a difference. Being a law firm, we be-lieve that the greatest difference we can make will be through efforts related to our profession and our business activities. We wish to contribute with active involvement of our partners and staff. Our CSR policy therefore centres on four areas:

Legal assistanceThe cornerstone in our CSR efforts is legal assistance. In many contexts, our lawyers provide legal assistance on favourable or pro-bono terms. We encourage our legal staff to be available with free legal advice within established legal-aid schemes, and some of our lawyers are coun-sels appointed by the Danish Supreme Court, which means that, following public appointment, they take on cases before the Court.

Research and knowledge sharingKnowledge and education constitute the core of our business. We attach great importance to sharing our legal knowledge because we wish to ensure and put our fingerprints on the ongo-ing development within the legal profession. We publish books and professional newsletters and hold a number of different seminars and courses. We are lecturers at external events and lecture at relevant institutions of higher education. We take on positions of trust and are part of working committees in fora within our profession.

Staff investmentsTo run a business as ours requires staff that are competent, healthy and functioning well. Therefore, we make huge investments in building up and maintaining legal competences as well as in general satisfaction and healthy lifestyle that extend beyond an employment relationship with LETT. Our efforts include a large number of initiatives - both preventive such as sporting activities, a breakfast-and-lunch scheme and health checks and curative such as massage and ergotherapist as well as health-service insurance.

Focus on the environmentLETT pays attention to minimising environmental and climate harm as much as possible. In our day-to-day operations, we focus on 3R - reduce, re-use, recycle. We continue to reduce our energy consumption and CO2 emissions and to focus on choosing more environmentally friendly and energy-wise products and solutions - for instance in relation to light sources, cleaning products or stationary. A part of LETT's electricity consumption is windmill generated. Moreover, we participate in legal debates run by our team for environmental law, which is internationally recognised as top of the line.

Our latest Global Compact reporting is available on www.unglobalcompact.org.

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Our history

LETT is rooted in one of the eldest law firms in Denmark which was founded in 1869 by Danish supreme-court lawyer and politician P.G.C. Jensen. In 2005, the LETT of today was created by the merger of Lett, Vilstrup og Partnere and Lett & Co. This merger gathering the three lawyers and Lett brothers Georg, Jesper and Ulrik under same roof meant that LETT became one of the large full-service law firms in Denmark.

Today, we provide advice from our two locations both situated within a stone's throw of the town halls in Copenhagen and Aarhus.

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Art at LETT

Art plays an important role in LETT and permanent room decorations in our meeting and front-desk facilities in Copenhagen and also temporary exhibitions are some of our most visual examples.

In addition, our partners are actively involved in a number of cultural contexts of both sports and art. Examples include Chairman of the Board of Directors of the foundation Elite Idræt Aarhus, chairperson of the doping committee of the National Olympic Committee and Sports Confederation of Denmark, commercial manager of the Copenhagen artists’ cooperative Grøn-ningen, consultant to the Danish foundation Charlottenborg Fonden and administrator of Queen Margrethe II's Archeologic Foundation. We also contribute actively to public debates on Danish culture and its conditions via our yearly participation in the Copenhagen Culture Night.

The illustrations in this annual report are close-up studies of a sculpture by sculptor Bjørn Poulsen, and it is on display in our meeting-facility area in Copenhagen. Bjørn Poulsen gradu-ated from the Royal Danish Academy of Fine Arts in 1988 and is a member of the Copenhagen artists’ cooperative Grønningen.

LETT Law FirmCopenhagen • Aarhus • lett.dk

Documents

LETT in brief 2013