annual report 2009 - glamox2011/11/09 · auditors report 44 key figures 45 addresses 46 2 key...

AnnuAl report 2009

Glamox is a norwegian industrial Group that develops, produces and distributes professional lighting solutions to the global market. Glamox consists of a group of companies with operations in several european countries, as well as Asia, the uSA and Canada. the Group is organised with Glamox ASA as the parent company.

operations are divided between two independent Divisions: professional Building Solutions and Global Marine & offshore. each Division is responsible for its group of companies.

Content

Main points and key figures 3

the lighting Company 4

Main points from the Divisions 6

the Board's annual statement 14

profit and loss account 22

Cash flow statement 23

Balance sheet 24

notes 26

Auditors report 44

Key figures 45

Addresses 46

2

Key fiGureS

2009 2008 2007 2006 2005

total revenue MnoK 1 763.3 1 606.8 1 593.8 1 353.1 1 227.9

operating profit/loss MnoK 124.9 147.5 158.4 106.8 70.3

profit/loss before tax MnoK 108.9 144.3 134.5 86.5 48.0

profit/loss after tax MnoK 66.1 117.4 93.8 89.4 47.2

Cash flow from operations MnoK 162.9 39.7 165.6 53.2 -8.6

total profitability % 15.8 16.4 18.3 14.5 9.0

equity ratio % 39.3 35.9 35.0 33.6 30.1

earnings per share noK 1.00 1.78 1.42 1.39 3.14

Diluted earnings per share noK 1.42 1.39 0.75

MAin pointS

Deterioratedmarketsituation,comparedwith2008

Decreaseinorderintakeof11%andinturnoverof7%beforeeffectofacquisition

Decreaseinrevenuesof15%.OperatingresultofNOK124.9m

comparedwithNOK147.5min2008

Inspiteofdeterioratedmarketsituation,theGroupachievedan

operatingmarginof7.1%(9.2%)

AcquisitionoftheLuxoGroupduringthesecondquarter

Netinterest-bearingdebtofNOK71mislessthanthepreviousyear(NOK73m)

Severalnewproductseriesareintroducedduringtheyear

ProposeddividendofNOK0.50pershare

3

professional Building Solutions

Global Marine & offshore

educational establishments

Health institutionsoffice and commercial buildings

industrial buildings Hotels and restaurants

retail and shopping centres

obstruction lightingCommercial marine oil & gas recreational boats navyCruise & ferries

tHe liGHtinG CoMpAny

Professional Building Solutions Division

professional Building Solutions concentrates on the european

market for land-based lighting. the Division offers the market total

solutions whitin several lighting concepts for office and commercial

buildings, industrial buildings, educational establishments, retail and

shopping centres, hotels and restaurants and health institutions.

Global Marine & Offshore Division

Global Marine & offshore is one of the world’s leading suppliers of

light fittings to the global marine and offshore market. the Division

offers the market total solutions within the following segments:

commercial marine, cruise & ferries, oil & gas, recreational boats,

navy and obstruction lighting.

Glamox: A leading european illumination brand for professional markets, offices and industry, onshore and offshore. Has been on the market for 60 years.

Høvik lys: established more than 130 years ago, one of the oldest brands in its field world wide. Specialises in luxurious design and customised solutions.

luxo: traditional brand that has delivered high quality solutions for more than 75 years, mainly for office buildings, industrial plants, health care facilities and other public areas.

norselight: Manufactures highly specialised search lights and special applications for the marine market. A high quality brand name with a history that goes back over 80 years.

aqua signal: the world leader brand name for marine lighting. Has been on the market for over 140 years.

Burton: one of uSA's leading brands within medical lighting for surgical operations, examinations and diagnostics. Has been on the market for more than 80 years.

4

Glamox InternationalNorway

aqua signal AGGermany

Aqua Signal CorporationUSA

Glamox Far East Pte. Ltd.Singapore

Mariteam Lighting Inc.Canada

Glamox Korea Co. Ltd.Busan - South Korea

Norselight ASNorway

aqua signal Teterow GmbH & Co KGBremen - G ermany

Mariteam Lighting Inc.Newfoundland - Canada

Norselight ASHalden - N orway

Glamox (Suzhou) Lighting Co. LtdSuzhou - China

Glamox Luxo LightingNorway

Glamox Luxo Lighting ABSweden

Glamox Luxo Lighting A/SDenmark

Glamox Luxo Lighting OyFinland

AS Glamox HEEstonia

Glamox Licht GmbHGermany

Glamox Ireland Ltd.Ireland

Glamox Electric (UK) Ltd.United Kingdom

AS Glamox HEKeila - Estonia

Professional Building Solutions Kjell Stamnes

Global Marine & OffshoreJan Berner

Senior Vice President

Accounting, finance, HR & ITThomas Lindberg

CFO

Manufacturing / Purchase Håkan W estinVice President

President & CEOKjell Stamnes

Glamox (Suzhou) Lighting Co. LtdChina

Sales Units Sales Units Production UnitsProduction Units

Luxo GmbHGermany

Luxo UK Ltd.United Kingdom

Luxo CorporationUSA

Burton Medical Products Corp.USA

Luxo Lamp Ltd.Canada

Glamox ProductionMolde - Norway

Luxo ProductionKirkenæ r - N orway

Burton Medical Products Corp.California - USA

Glamox Luxo ProductionM ålilla - Sweden

Man-years (average) by market: 1261 turnover by market: 1763 MnoK

tHe liGHtinG CoMpAny

28 % norway 18 % nordic region ex. norway 30 % europe ex. nordic region 7 % north-America 15 % Asia 2 % others

42 % norway 11 % nordic region ex. norway 36 % europe ex. nordic region 4 % north-America 7 % Asia

Glamox Group

5

Main POintSfrom the Divisions

in 2009, Glamox purchased 100 % of the shares in luxo ASA. taking effect on January 1, 2010, luxo and Glamox are integrated into a global group organisation. the professional Building Solutions (pBS) Division will be operative from the same date and is a merger of luxo’s operations and Glamox’s earlier european professional lighting (epl) Division. pBS is organised as an independent division within the Glamox Group with total responsibility for its own budget and results.

the purchase of luxo fits well into Glamox’s strategy for further development. luxo is a good trademark that is rich in tradition in the international

lighting markets with strong positions in many markets, especially within workplace lighting. together, Glamox and luxo will have a reinforced market position in several countries in europe, and the purchase will strengthen the product range so that we can offer a broader spectrum of lighting solutions.

luxo and Glamox have many common lines of development. they were established by strong founders just before the war and just after the war respectively. they have always had strong norwegian roots. through long-term work, both Groups have established significant operations outside of norway and they represent strong

and acknowledged trademarks globally. the merged Group will be a significant player in the lighting market with strong norwegian roots and leading positions in many international markets.

pBS develops, produces and sells lighting solutions for land-based market segments primarily in europe, but also in north America and other selected markets. in addition, in some of pBS markets, electric heaters under the Glamox Heating trademark, and produced by Adax AS, are sold. pBS has four strong trademarks, Glamox, Høvik lys, luxo and Burton.

pBS has its own sales companies in norway, Denmark, Sweden, finland,

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PROFESSIONALBUILDINGSOLUTIONS(PBS)

Key ratios 2009 2008 2007 revenues MnoK 1 043.3 869.0 879.2 operating result MnoK 36.01) 79.4 93.9 operating margin % 3.51) 9.1 10.7

1) Includes non-recurrent costs of NOK 7.7mFigures for 2007 and 2008 are without Luxo. Figures for 2009 include Luxo as of 1st of May

estonia, Great Britain, ireland, Germany, uSA and Canada. in other markets, activities and products are represented through distributors/agents. pBS has its own production units in norway, Sweden, estonia and uSA.

through the purchase of luxo, Glamox is not only expanding the product range but also geographically. the product range of luxo complements Glamox’s product spectrum through a wide range of table lamps, magnifiers and special lighting for the health segment. in addition, together we will now also have a single more complete range within decorative general lighting. luxo has also developed broad competence within leD, from which the entire group will be able to benefit. in europe, Glamox and luxo primarily operate on the same markets. During the course of 2010, the sales operations in europe will merge in the individual countries. in addition, luxo has both sales and production operations in north America.

production activities are here directed to the health segment through our subsidiary, Burton Medical products.

At the end of 2009, pBS employed 859 man-labour years, of which 43 % are employed outside of norway.

pBS delivers a broad range of complete lighting solutions to different markets and market segments. the prioritised market segments are office and business building projects, industrial building projects, educational building projects and health institutions. in addition, lighting solutions are delivered to hotels, shops/shopping centres and outdoor lighting. Glamox is a market leader

for professional lighting in norway and has good market positions in other nordic countries and estonia.pBS serves all important parts in the sales and distribution chain, both architects, consultants, building owners, contractors and installers. in addition, our table lamps are sold through selected dealers. in all markets there is a strong focus on increased processing of the

MAin pointS froM tHe DiviSionS

77

descriptive element (architects and consultants) to be described in projects.

the market situation in all our primary markets has had a negative development through 2009. in norway, estonia, ireland, finland and Denmark, the decline has been especially large. the primary reason for this is a significant reduction in new construction activities within office, business and industrial building projects as a consequence of the financial crisis. relatively speaking, public building activities within education and health building projects have remained at a better level. this was a development that already started in the second half of 2008. to a greater extent than before, the uncertain state of the market has contributed to increased competition and a price press in the market. in spite of this negative trend in the development of the market, our market share is increasing in several of our primary markets. We anticipate a further decline in our most important markets in 2010.

the new pBS division had an operating result of noK 36.0m including non-recurrent costs of noK 7.7m. for a comparable activity, the result before non-recurrent costs was noK 47.9m in 2009 against noK 79.4m in 2008. the reason for the weaker result is a reduction in turnover from noK 869m in 2008 to noK 775m in 2009. in the course of 2009, capacity reductions at producing units and cost reductions were implemented. At the end of 2009, we have also closed down our production business of Høvik in Halden and have moved this production to our factory in estonia. We will not see the full effect of these measures until 2010.

in 2009, pBS has also continued its investments in product development. Several new products have been launched and several development projects have been started. luxo now has a completely new series of table lamps that are based on leD technology.

With a substantial export-oriented production with its base in norway, a stable exchange rate for the norwegian krone and moderate wage settlements are important elements for not weakening our competitiveness.

the lighting industry in europe continues to be heavily fragmented and characterised by a certain amount of over-capacity. this is reinforced by the market conditions that currently prevail. We anticipate that restructuring will continue in the years to come. in order to ensure a good development in profitability, pBS will continue to work with streamlining in order to maintain competitiveness, increased growth in volume in our individual markets and investments in product development.


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the Global Marine & offshore Division is organised as an independent division within the Glamox Group with responsibility for its own budget and results.

Global Marine & offshore is one of the world’s leading suppliers of lighting fixtures and lighting solutions to the global marine and offshore markets. over several years the division has employed four strong, international trademarks; aqua signal, Glamox, Høvik lys and norselight. After Glamox’s purchase of luxo, the division now also markets luxo products as its own to the global marine and offshore market.

Global Marine & offshore has production units in norway, Germany, China and Canada, and its own assembly factory in Korea. the division is represented on all continents through its own marketing companies, agents and distributors. the activities have their own sales units in norway,

Germany, finland, Singapore, China, uSA, Canada and Korea.

At the end of 2009, Global Marine & offshore employed 416 man-labour years. 87 % of the employees are engaged in activities outside of norway.

Key ratios 2009 2008 2007 revenues MnoK 720.0 737.0 714.0 operating results MnoK 65.41) 67.7 65.4 operating margin % 9.11) 9.2 9.2

1) Includes non-recurrent costs of NOK 9.4m


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GLOBALMARINE&OFFSHORE(GMO)


vessels). there has also been a decline in the recreation boat segment due to the general decline in the market. However, there has been an increase of 20 % in the oil & gas segment. there has also been an increase in deliveries to military projects. there has been an increase in turnover in Asia, but a decline in europe. Asia represented 38 % of the turnover in this area of activity in 2009.

in 2009, Global Marine & offshore achieved total revenues of noK 720m, which is a decline of 2 % compared to 2008. the operating result was noK 65.4m against noK 67.7m in 2008. this includes noK 9.4m in non-recurrent costs. in spite of the lower revenues, the division has improved its result through an improved gross margin and good cost control.

the demand for lighting solutions is expected to be lower in 2010 than in 2008 and 2009. this is a consequence of significantly lower contracts of new construction at shipyards in 2009, which is also expected to be relatively low in

MarKet cOnDitiOnS anD MarKet SeGMentSGlobal Marine & offshore operates globally within the commercial marine, cruise and ferries, oil & gas, recreation boats, mega yachts and military marine segments. on the land project segment the division operates only in individual regions outside europe. the division is a global leader in the commercial marine and in the cruise and ferries segments. GMo has a strong position within oil and gas both in europe and Asia. furthermore, we have a strong position within the recreation boat sector in europe and uSA, especially within navigation lights.

Global Marine & offshore has a marketing model that enables it to serve all important sales and distribution channels to shipyards, ship owners, architects, consultants and installers. We encounter regional competitors in most countries, but in today’s global market there are only three to four competitors offering comparable solutions.

the market for commercial marine (merchant fleet vessels) and the oil & gas segment suffered a decline in 2009. there have been too few new orders of ships and offshore vessels. Many shipyards have had large orders in hand for 2009, and several shipyards also have orders in hand for deliveries in 2010. However, a numer of the shipyards have also experienced cancellations and delays throughout the year.

As a consequence of the decline in the market, Global Marine & offshore has had a decline in turnover within commercial marine (merchant fleet

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Øyvind Hagen © Statoil

2010. this will create uncertainty for the market situation in the future and will have an effect for GMo in 2010. Capacity adjustments have been carried out in individual factories during the second half of 2009, and reductions in costs have been better adapted to a lower level of activity in 2010.

Glamox established a company in Korea, Glamox Korea Co ltd. this company assembles lighting fixtures, maintains stocks for project deliveries and provides better technical assistance to the shipyards in Korea. the company is also developing a sales-function in order to strengthen market processing and sales efforts in the area. We expect this to strengthen our market position in Korea and create a basis for additional growth in our most important export market.

Asia will continue to be an increasingly important market for Global Marine & offshore. We are well established in the region. We have production in China, assembly operations in Korea and our own sales organisations in Korea, China and Singapore.

During 2009 GMo has also reorganized its salesorganisation. A region- and country structure has been established with clear responsibilities to support and supply all Glamox brands within each geographical area. through this change GMo hopes to even better serve its local customers with the best total lighting solution combining all the company brands.


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■ Deteriorated market situation, compared with 2008

■ Decrease in order intake of 11 % and in turnover

of 7 % before effect of acquisition

■ Decrease in revenues of 15 %. operating result of noK

124.9m compared with noK 147.5m in 2008

■ in spite of deteriorated market situation, the Group

achieved an operating margin of 7.1 % (9.2 %)

■ Acquisition of the luxo Group during the second quarter

■ net interest-bearing debt of noK 71m is less

than the previous year (noK 73m)

■ Several new product series are introduced during the year

■ proposed dividend of noK 0.50 per share

the Board'sannUaL StateMent

Main POintS anD KeY FiGUreS

1414

© polarcus limited

Glamox is a norwegian industrial group that develops, manufacturers and distributes professional lighting solutions for and to the global market. Glamox operates in several european countries, as well as in Asia, uSA, and Canada. the Group is organised with Glamox ASA as parent company and with registered office in Molde, norway.

the Glamox Group acquired 100 % of the shares in the norwegian, publicly listed lighting corporation luxo ASA in 2009. unless otherwise expressly indicated, all figures for the Group include the luxo Group's figures from May 1 2009.

in 2009, the Group had an order intake of noK 1,756m compared with noK 1,655m in 2008, an increase of 6 %. the Group’s order intake adjusted for acquisition in the period, show a decline of 11 %.

the revenues were noK 1,763m, compared with noK 1,607m in 2008, an increase of 10 %. the Group's revenues adjusted for acquisition in the period, show a decline of 7 %.

the operating result was noK 124.9m, compared with noK 147.5m in 2008. the acquired luxo business has contributed in the period with a negativ result in the Group of noK 5.8m. the operating margin of comparable operations was 8.7 % in 2009, compared with 9.2 % in 2008. the operating result in 2009 has a positive one-time effect of noK 23.5m as a result of the transition from performance-based to deposit-based retirement plan for employees in norway. At the same time, the Group has had one-time costs as a result of cuts in the workforce

and reorganising the operations, of a total of noK 17.0m. the lower operating result is due to the reduced turnover as a result of the partially significant decline in most markets.

the net income before taxes was noK 108.9m, compared with noK 144.3m the previous year. in 2009, the Group has higher financing costs as a result of the acquisition of the luxo Group. We also have an agio loss in 2009 of noK 6.2m, compared with an agio gain of noK 3.8m in 2008. the result after taxes was noK 66.1m, compared with noK 117.4m the previous year. As of 31.12.2009, the Group has a tax deficit for carrying forward of noK 64m, and an untaxed profit of noK 84m.

in 2009 the Group has also had a positive cash flow from the operating activities. the cash flow from operation (operational activities and investment activities before the acquisition of luxo) of noK 162.9m, compared with noK 39.7m in 2008, is higher as a result of lower working capital and lower investments than the previous year.

the liquidity reserve ended up at noK 357m at the turn of the year, compared with noK 347m the previous year.

the turnover in the parent company Glamox ASA was noK 884m, compared with noK 928m in 2008. the operating result was noK 84.6m, compared with noK 75.2m in 2008. the net income before taxes was noK 181.7m, compared with noK 31.0m in 2008. the increase in income is due to the internal sale of shares in subsidiary companies in connection with the reorganising of the legal group structure. Also, the parent company had a positive

tHe BoArD'S AnnuAl StAteMent

1515

agio effect in 2009 of noK 40.8m compared to noK 48.3m in 2008 on foreign exchange loans that are used to neutralise fluctuations in owner shares in foreign subsidiary companies. this effect is practically neutral on Group level in 2008 as well as 2009.

in last year's report, the Board relied on a lower result in 2009 than in 2008 as a result of expecting a sinking market in 2009. the decline in the Group's main markets has partially been significant in 2009, especially in the land-based activity. this is the main reason why the Group is experiencing a decline in their results. through an offensive focus on making the most of market opportunities that still exist, the Group has seen a smaller decline in turnover than the decline in the Group's main markets would indicate. We also still have a high activity in product development and have launched several new products in the course of the year.

Considering the decline in the Group's main markets, the board is satisfied with the Group's result in 2009 and the good development in cash flow. the Board is also satisfied with the administration's significant work connected with the successful acquisition and integration of luxo. the Board thanks all employees for very good work throughout the year.

caPitaL anD LiQUiDitYAs of 31.12.2009, the balance was noK 1,106m, compared with noK 1,070m as of 31.12.2008.

At the turn of the year, the Group's equity capital was noK 435m. the equity capital was 39.3 %. Glamox ASA had an equity capital of noK

408m, and an equity ratio of 48.5 %.At year-end, distributable reserves, including other paid-incapital, was noK 324m in Glamox ASA after accrual of dividends of noK 33m.

in 2009, the operations cash flow was noK 162.9m, compared with noK 39.7m in 2008.

At the turn of the year, the liquidity reserve amounted to noK 357m, compared with noK 347m the previous year.

As of 31.12.2009, the Group has a net interest-bearing debt of noK 70.7m, compared with noK 73.3m in 2008. Compared with the operating result before depreciation of noK 180.1m this gives a ratio of 0.41.

in 2009 investments of working capital of noK 36.1m were made, outside of the acquisition of luxo. in 2008, investments were made of noK 51.1m.

the accounts are presented on the premise of continued operations.

FinanciaL riSKthe Group is exposed to credit risk, interest risk and exchange risk in its ordinary business activity and is aiming for an acceptable risk in these areas. the underlying loan contracts are instrumental for controlling the interest risk. exchange risk is controlled through internal invoicing rules, matching of income and costs in the same foreign currency and loan against equity capital in the same currency, as well as use of financial instruments. for more detailed information, see note 17 in the annual accounts.


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acQUiSitiOn OF LUXO the Group purchased the lighting company luxo in the second quarter of 2009. the purchase amount including transaction charges amounted to noK 116m. in 2008, the luxo Group had a turnover of noK 496m.

luxo is a good trademark with long traditions in the international lighting markets, specially in workplace lighting. the acquisition will contribute to solidifying the Group's market position in several countries, especially in northern europe. through an expanded and very interesting product portfolio, one will be able to offer several alternative lighting solutions focusing on energy efficiency, good design, high quality, and right ergonomics. luxo and its subsidiary companies are integrated in the Glamox Group's organisation as of January 1 2010. luxo's operations have been merged with the Group's land-based operation european professional lighting (epl) to a new division, professional Building Solutions (pBS). to simplify the legal company structure, a number of mergers are being carried out during the 1st half of 2010 in several european countries.

DeVeLOPMent in eacH BUSineSS area the Group has experienced a decline in the market situation throughout entire 2009. As a result of the market development, the Group has carried out several measures to adapt the capacity at several of the factories and the rest of the Group. the Group has carried out discharges, temporary lay-offs and reduced working hours. through extraordinary measures, the material costs for several input

factors in the manufacture have also been successfully reduced.

in 2009, the Group also has had a high activity in product development and several new product series have been launched.

european Professional Lighting (ePL) in 2009, the business area achieved an order intake of noK 782m (noK 873m), a decline of 10 %. in the same period, the revenues was noK 775m (noK 869m), which is a decline of 11 %. the decline in order intake as well as in revenues is the result of significant market decline in all main markets. However, the decline is less than the total market decline in several of our main markets.

the business area has a decline in results in 2009. the decline is due to the reduced revenues as a result of the negative market development. the business area has carried out a number of cost reducing measures to adapt to the lower revenues level. in the third quarter, it was decided to shut down the manufacturing operations Høvik lys produksjon in Halden, norway. the manufacturing of these products has been moved to the Group's manufacturing facility in estonia.

the operating result for 2009 was noK 41.8m (5.4 %), compared with noK 79.4m (9.1 %) last year.the results for 2009 were charged with noK 6.1m in non-recurring expenses associated with the reorganisation of the business.

1717

the development of the markets where epl is represented, showed a significant decline in 2009, compared with the previous year. the picture is somewhat more complex between the markets, but all markets showed decline. epl has taken market shares in several of the main markets.

in 2009 we have also seen an increasing interest in energy-economising lighting solutions. in 2009 the area of operation has also launched several new products.

With a significant export-oriented manufacturing in norway, the business area relies on a stable exchange rate for the norwegian krone and moderate wage settlement as important elements in maintaining competitiveness.

Global Marine & Offshore (GMO)the business area had an order intake of noK 687m (noK 782m ), a decline of 12 %. the turnover was noK 720m (noK 737m), a decline of 2 %.

there has been a decline in the market in 2009, specially during the second half. the shipyards have received few new orders for ships and offshore vessels. Many shipyards had a large order reserve for 2009 at the start of the year, and several of these shipyards still have order reserves for delivery in 2010. Many shipyards have had cancellations and significant delays throughout the year.

As a result of the decline in the market, Global Marine & offshore has had setbacks in commercial marine (merchant fleet ships). there has also been a setback in the recreational boat segment,

also due to the general decline in the market. However, there has been an increase in the oil & Gas segment of approx. 20 %, as well as an increase in deliveries to military projects. there has been an increase in turnover in Asia, but a decline in europe. Asia constituted 38 % of the turnover in 2009.

the results for 2009 were charged with noK 9.4m in non-recurring expenses assosicated with the reorganisation of the business. the operating result was noK 65.4m (9.1 %), compared with noK 67.7m (9.2 %) in 2008.

We are expecting the demand for lighting solutions in the market segment Marine & offshore to be lower in 2010 than 2008 as well as 2009. this is a consequence of significantly lower contracts for new constructions in 2009, which is also expected to be low throughout 2010. During the second half of the year, measures are taken to reduce costs and the capacity to adapt the operations to a lower turnover.

Asia is becoming an increasingly more important market for Global Marine & offshore. it is a demanding market to work, and the business area will continue to intensify the sales and market promotion in this region. this applies especially in China, Korea, and the Middle east. in 2009, GMo has established an installation and sales operation in Korea in order to be better able to serve the local market.

Luxoluxo is mainly in the same markets as the area of operations epl. for table lamps, however, the market has seen a greater decline than in general lighting.


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the north-American market has also shown significant decline in 2009.luxo has a decline in its turnover which largely is in line with the general market decline.

Several new products have been launched in 2009, which have been well received in the market. these new products are largely based on leD technology.

the acquisition of luxo has contributed with a negative operating result of noK 5.8m from the time of acquisition. the results for 2009 were charged with noK 1.6m in non-recurring expenses assosicated with the reorganisation of the business. the market and cost synergies as a result of the acquisition have only to a small degree had effect in 2009. So far, the effect of the acquisition has been in line with the premises laid by Glamox.

GLaMOX anD tHe eXternaL enVirOnMentAs part of the Group's business idea, Glamox shall, through systematic and long-term work, position itself as an environmental company.

the Group's manufacturing units in Molde, Kirkenær, Germany, and Sweden are certified in accordance with en iSo 14001. the units fulfil the strictest requirements to environmental control and are obliged to document an environmental control system.

in 2009, the company continued its efforts to reduce the hazardous chemicals and replace the most hazardous products with more environmentally friendly products.

the environmental aspects are included as an important part of our product development. through energy effective products and solutions, we aim at making the most of market opportunities, such as eu's energy directive for construction.

HUMan reSOUrceS anD WOrK enVirOnMent the number of man-labour years was 1,294 as of 31.12.2009, compared with 1,110 in 2008. At the turn of the year, the number of man-labour years in Glamox ASA was 400, compared with 466 in 2008.

the work environment in the Group units is satisfactory, and there is good collaboration with the employee representatives.

in 2009, sick leave in Glamox ASA was 8.1 %, compared with 7.1 % in 2008. the company is not satisfied with the high level of sick leave. lower sick leave is important in order to maintain the necessary competitiveness. in 2010, less sick leave will also continue to be on the agenda. Sick leave in the other Group units varies.

there were two cases of injury that lead to absence from work in Glamox ASA in 2009, while six were reported in 2008. in 2009 the H-value was 3.2, compared with 9.3 in 2008. the H-value is a defined standard measurement size for the frequency of injuries in a company. focus on making the work environment safe will continue with unabated effort in 2010. the number of reported injuries in the Group's other units was limited in 2009.

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tekstrePOrt On WOrK WitH GenDer eQUaLitY At the turn of the year, the number of employees in Glamox ASA was 439. of these, 31 % were women.

there were 37 % women among operators. there were 22 % women among office workers. the share of women in management with personnel responsibility was 9 %.

the company focuses on that the same skills and seniority are paid the same, regardless of gender. Women and men in all kinds of positions are given the same opportunities to qualify for all kinds of chores and promotion opportunities.

the share of women among the board members selected by shareholders was 40 %. the share of the board members selected by the employees was 33 %.

WOrKinG tO PrOMOte tHe GOaL OF tHe DiScriMinatiOn anD tHe GenDer eQUaLitY actAt present, Glamox ASA has employees originating from many countries. the company has more than 25 nationalities represented among its employees. Among the 439 employees, there are many different language and religious backgrounds. the company is working with qualification companies and has regularly made trainee places available.


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reMUneratiOnregarding remuneration to the board, management and auditor, we refer to note 5 in the annual accounts.

SHareHOLDer SitUatiOnregarding shareholder situation, we refer to note 12 in the annual accounts.

PrOPOSaL FOr aLLOcatiOn OF PrOFitthe board proposes that the year's result in Glamox ASA of tnoK 147,772 is used in the following way:- transferred to other equity capital: tnoK 114,778- Allocation to dividend: tnoK 32,994

PrOSPectSthe Board bases both business areas of operation on a declining market in 2010. there is also significant uncertainty as to how large the decline will be.

the Group's long-term strategy with focus on profitable organic growth, remains. Due to ongoing declines in the markets, however, we are not counting on organic growth in 2010. the acquisition of the luxo Group provides greater opportunities to make the most of the existing market opportunities. By integrating the sales organisation of luxo and Glamox during 2010, positions in shared markets will be strengthened. the acquisition of luxo also provides for cost synergies on several levels. in 2009, a number of cost reducing measures were also put in place, which will have an effect on the entire year of 2010, at the same time as new measures are regularly being considered.

for the year as a whole, the board expects a somewhat lower result than in 2009.

oslo, 1 March, 2010

Bjørn Arnestad eyvin M. olsen Heidi Marie petersen Chairman of the Board

Marianne ulrichsen Sverre valvik Henny eidem

Sigmund Johansen Bjørn n. larsen Kjell Stamnes Chief executive officer

2121

PrOFit anD LOSS accOUnt

Parent GrOUP

01.01 - 31.12 note 01.01 - 31.12

2009 2008 nOK tHOUSanDS 2009 2008 2007

823 003 866 985 Sales revenue 2 1 736 362 1 578 436 1 562 306

61 493 61 013 other operating revenue 2 26 917 28 360 31 502

884 496 927 998 tOtaL reVenUe 1 763 279 1 606 796 1 593 808

496 085 499 371 raw materials and consumables used 4 856 252 802 373 814 838

228 378 249 249 payroll and related costs 5 535 605 448 518 426 411

-23 641 termination of performance-based retirement plan 5 -23 538

25 413 23 190 Depreciation of fixed assets 3/7 55 142 39 787 45 033

73 707 87 578 other operating expenses 3/5 214 903 168 600 149 120

-6 555 Write-down on shares in subsidiaries 3

84 554 75 165 OPeratinG PrOFit/LOSS 124 915 147 518 158 406

4 865 3 932 Dividend and group contribution from subsidiaries

1 863 3 811 interest income from other group companies

94 480 8 723 other financial income 3/6/8 47 402 60 619 5 510

-4 083 -60 671 other financial expenses 6 -63 380 -63 864 -29 375

181 679 30 960 PrOFit/LOSS BeFOre taX 108 937 144 273 134 541

-33 907 -6 238 tax 11 -42 861 -26 883 -40 698

147 772 24 723 PrOFit/LOSS aFter taX 66 076 117 390 93 843

147 772 24 723 PrOFit/LOSS FOr tHe Year 66 076 117 390 93 843

aLLOcatiOn OF PrOFit/LOSS FOr tHe Year

32 994 32 994 proposed dividends 12 32 994 32 994 13 198

114 778 -8 272 other equity 12

Majority share 12 33 623 84 385 80 645

Minority share 12 -541 10

147 772 24 723 tOtaL aLLOcatiOn 66 076 117 390 93 843

2222

caSH FLOW StateMent

Parent GrOUP

01.01 - 31.12 note 01.01 - 31.12

2009 2008 nOK tHOUSanDS 2009 2008

CASH floW froM operAtinG ACtivitieS

181 679 30 960 profit before tax 108 937 144 273

-53 -28 taxes paid -18 127 -13 364

-53 949 profit/loss on sale og fixed assets 3 -849 130

25 413 23 190 Depreciation 3/7 55 142 39 787

17 345 -16 589 Changes in inventory 66 475 -63 334

-3 064 14 853 Changes in accounts receivables 40 588 -20 909

-9 716 7 271 Changes in account payables -55 703 -5 186

-45 486 37 389 Changes in pension scheme assets/liabilities -45 781 39 031

22 958 -41 821 Changes defined benefit plan recognised directly in equity 23 913 -43 094

-22 887 28 164 effect of change in exchange rate -2 098 20 029

-857 -25 065 Changes in other balance sheet items 26 461 -6 616

effect aquisition of the luxo Group at 01.05.2009 -48 829

111 382 58 324 net caSH FLOW FrOM OPeratinG actiVitieS 150 129 90 747

CASH floW froM inveStinG ACtivitieS

849 proceeds from sale of tangible fixed assets 849

125 243 proceeds from sale of investments in shares and joint ventures 3

-15 335 -27 722 purchase of tangible fixed assets and intangible assets -36 765 -51 089

-115 872 purchase of investments in shares and joint ventures

-113 083 -6 323 payment of loan to group-companies

purchase of other investments -154

effect aquisition of the luxo Group at 01.05.2009 -100 417

-118 199 -34 045 net caSH FLOW FrOM inVeStinG actiVitieS -136 487 -51 089

CASH floW froM finAnCinG ACtivitieS-16 661 -16 977 repayment of long-term loans -29 799 -19 226

net change in bank overdraft -4 995

issue of share capital 375

-32 994 -13 198 payment of dividends to share holders -32 994 -13 198

effect aquisition of the luxo Group at 01.05.2009 33 374

-49 655 -30 175 net caSH FLOW FrOM FinancinG actiVitieS -34 039 -32 424

-56 471 -5 896 net cHanGe in caSH anD caSH eQUiVaLentS -20 397 7 234

158 157 164 053 caSH anD caSH eQUiVaLentS 01.01 1/15 227 336 220 102

101 686 158 157 caSH anD caSH eQUiVaLentS 31.12 1/15 206 939 227 336

2323

aSSetS

Parent GrOUP

31.12 31.12 note 31.12 31.12

2009 2008 nOK tHOUSanDS 2009 2008

fiXeD ASSetS

intAnGiBle fiXeD ASSetS research and development 7 6 116

2 014 2 365 rights, it system etc. 7 20 424 3 410

298 38 641 Deferred tax assets 11 16 828 45 398

Goodwill 7 29 740 865

2 312 41 006 tOtaL intanGiBLe FiXeD aSSetS 73 108 49 673

tAnGiBle fiXeD ASSetS

92 622 95 982 land, buildings and other property 7/13 168 729 153 356

72 501 75 874 Machinery and plant 7/13 117 179 116 137

7 859 10 960 fixtures and fittings, tools, office equipment etc. 7/13 32 376 36 898

172 982 182 816 tOtaL tanGiBLe FiXeD aSSetS 318 283 306 391

finAnCiAl fiXeD ASSetS 199 586 155 856 investments in subsidiaries 8/13

181 586 68 503 loans to group companies 9/14

115 115 investments in shares 725 197

119 other receivables 401 258

381 287 224 592 tOtaL FinanciaL FiXeD aSSetS 1 126 455

556 580 448 413 tOtaL FiXeD aSSetS 392 517 356 519

Current ASSetS87 234 104 578 inventory 4 265 569 269 807

DeBtorS 87 646 84 583 Account receivables 14 211 614 194 953

7 969 8 851 other receivables 28 994 21 557

95 615 93 434 tOtaL receiVaBLeS 240 608 216 510

101 685 158 158 Cash and cash equivalents 15 206 939 227 337

284 534 356 170 tOtaL cUrrent aSSetS 713 115 713 654

841 114 804 583 tOtaL aSSetS 1 105 632 1 070 173

2424

oslo, 1 March 2010 Bjørn Arnestad eyvin M. olsen Heidi Marie petersen Marianne ulrichsen

Chairman of the Board

Sverre valvik Bjørn n. larsen Henny eidem Sigmund Johansen Kjell Stamnes

Chief executive officer

eQUitY anD LiaBiLitieS

Parent GrOUP

31.12 31.12 note 31.12 31.12

2009 2008 nOK tHOUSanDS 2009 2008

eQuity

pAiD-in CApitAl65 989 65 989 Share capital 12 65 989 65 989

135 454 135 454 Share premium reserve 12 135 454 135 454

201 442 201 442 tOtaL PaiD-in caPitaL 201 443 201 443

retAineD eArninGS

206 878 75 806 other equity 12

Group reserve 12 233 447 182 606

206 878 75 806 tOtaL retaineD earninGS 233 447 182 606

Minority interests 12 -156 10

408 320 277 248 tOtaL eQUitY 434 733 384 059

liABilitieS

proviSionS Deferred tax 11 25 996 17 498

4 271 4 458 other provisions 12 009 12 161

4 271 4 458 tOtaL PrOViSiOnS 38 005 29 659

otHer lonG-terM liABilitieS209 645 247 958 liabilities to financial institutions 10/13 272 182 291 020

1 304 2 638 other long-term loans 10/13 5 478 9 615

13 896 59 383 pension liabilities 5 29 936 60 253

224 845 309 978 tOtaL OtHer LOnG-terM LiaBiLitieS 307 596 360 887

Current liABilitieS 104 366 114 082 Account payable 14 141 703 142 817

2 078 28 tax payable 11 4 734 8 687

13 688 13 136 public duties payable 29 514 17 408

32 994 32 994 Dividends 12 32 994 32 994

50 551 52 658 other current liabilities 116 353 93 662

203 678 212 898 tOtaL cUrrent LiaBiLitieS 325 298 295 568

432 794 527 334 tOtaL LiaBiLitieS 670 899 686 115

841 114 804 583 tOtaL eQUitY anD LiaBiLitieS 1 105 632 1 070 173

2525

nOteSnote 1 accounting principles

Basic policies - incorporation and classification

the annual accounts, which are prepared by the Board and management, must be read in the context of the annual report and the auditor’s report.

the annual accounts and consolidated accounts comprise the profit and loss account, balance sheet, cash flow statement and notes and are prepared in accordance with the Companies Act, the Accounting Act and generally accepted accounting policy in norway applicable as at 31st of December 2009. All figures in the annual accounts and notes are shown in noK thousands unless otherwise specified.

the annual accounts and consolidated accounts are prepared on the basic principles of historic cost, comparability, continued operation, congruency and prudence. transactions are incorporated into the accounts at the value of the payment at the time of the transaction. revenue is incorporated into the profit and loss account when it is earned and costs are grouped with accrued income. Hedging and portfolio management are taken into account. the accounting policies are explained in more detail below.

Subsidiaries and associated companies in parent company

‘Subsidiaries’ refers to companies in which Glamox normally has a shareholding of more than 50%, in which investment is long-term and strategic and in which the company has a controlling interest. Subsidiaries are incorporated into the company accounts at the lowest of cost price or actual value.

‘Associated companies’ refers to companies in which Glamox normally has a shareholding of 20-50%, in which investment is long-term and strategic and in which the Group has a significant influence. Associated companies are entered in the company accounts at the lowest of cost price or actual value. for the time being the parent company does not have any assosiated companies.

consolidation policies

consolidated companiesthe consolidated accounts include companies in which the parent company and the subsidiaries directly or indirectly have a control-ling interest. the consolidated accounts show the companies’ financial position, profit/loss from the year’s activities and cash flow as a single financial entity. Controlling interest is achieved through direct or indirect ownership of more than 50% of the voting capital. uniform accounting policies are applied to all group companies. recently acquired subsidiaries are incorporated from the time a controlling interest is achieved and sold subsidiaries are incorporated until the time of sale.

in the case of gradual purchase of shareholdings, figures are based on the value of assets and liabilities at the time of incorporation into the Group. Subsequent purchase of shareholdings in existing subsidiaries will not effect the valuation of assets and liabilities, apart from added value in the form of goodwill, which will be analysed for each acquisition

elimination of internal transactionsAll significant intercompany transactions and intercompany balances are eliminated.

elimination of shareholdings in subsidiariesShareholdings in subsidiaries have been eliminated in the consolidated accounts in accordance with the acquisition method. the difference between the cost price of shareholdings and the book value of net assets at the time of acquisition is analysed and classified under the individual balance sheet items in accordance with actual value. Any further additional cost caused by expectations of future earnings is capitalised as goodwill and depreciated in the profit and loss account in line with underlying conditions and anticipated financial life.

conversion of foreign subsidiariesthe conversion of foreign subsidiaries from local currency into norwegian kroner is for balance sheet items done at the exchange rate 31.12.08 and for profit and loss items at the year average rate. the discrepancy created by converting the company’s opening equity and profit for the year at a different exchange rate is posted on the Groups profit and loss account as financial items.

2626

Minority intereststhe minority interests’ share of profit after tax and equity are shown as separate items in the profit and loss account and balance sheet.

associated companies

Associated companies’ normally refers to companies in which the Group has a shareholding of 20-50%, in which investment is long-term and strategic and in which the Group has a significant influence. Associated companies are incorporated into the consolidated accounts in accordance with the equity method. for the time beeing the Group does not have any assosiated companies.

General policiesAssets/liabilities associated with the product cycle and items to be repaid within one year of the date of the balance sheet are classified as current assets/current liabilities. Current assets/current liabilities are valued at the lower/higher value of acquisition cost and actual value. Actual value is defined as anticipated future sale price minus anticipated sale costs. other assets are classified as fixed assets. fixed assets are valued at acquisition price. fixed assets that deteriorate are depreciated. if a permanent change in value occurs, the fixed asset is written down. Similar policies are normally applied to liabilities.

When using accounting policies and presenting transactions and other conditions, emphasis is placed on financial reality, not just legal practice. Conditional loss that is significant and quantifiable is entered as expenditure. Division into segments is based on the company’s internal management and reporting objectives, as well as risk and income. figures are presented for business areas as well as geographical markets if geographical categorisation of activities is significant to the assessment of the company. the figures are reconciled with the profit and loss account and balance sheet.

accounting policy for significant account items

crediting the profit and loss accountincome is credited to the profit and loss account when it is earned. this means that the profit and loss account is normally credited at the time of delivery for the sale of goods and services.

charging as expenditure/groupingexpenses are grouped with and charged as expenditure at the same time as the income to which the expenses can be linked. expenses that cannot be directly linked to income are entered as expenditure when they arise. in the case of restructuring and winding up of activities, all associated expenses are entered as expenditure, when the decision of restructuring and winding up is taken.

Other operating income/expensesSignificant income and expenses that are not associated with ordinary activities are classified as other operating income and expenses. items that are unusual, occur sporadically and are significant are classified as extraordinary.

intangible fixed assetsintangible assets that are expected to generate income in the future, such as goodwill in subsidiaries, rights and it systems, are capi-talised. Depreciation is calculated on a straight-line basis over the financial life of the assets. expenses associated with research and development are entered as expenditure on a continuous basis.

tangible fixed assetstangible fixed assets are entered in the balance sheet at acquisition cost minus accumulated depreciation and write-downs. if the actual value of a piece of equipment is lower than its book value for reasons that are considered to be permanent in nature, the equipment is written down to actual value. expenses associated with periodical maintenance and repairs to production equipment are periodized. expenses associated with standard maintenance and repairs are continuously charged as expenditure. expenses associated with large-scale replacements and updates that significantly extend the lifetime of the equipment are capitalised. operating equipment is considered a tangible fixed asset if it has a financial life of more than three years and a cost price of more than noK 15 000. operating equipment leased under conditions which to all intents and purposes transfer financial rights and obligations to Glamox (financial leasing) are capitalised as operating equipment and entered as a commitment under interest-bearing liabilities at the current value of the minimum current rent. operational leasing is charged as expenditure at ordinary rental cost and classified as ordinary operating expenses.

note 1 accounting principles (cont.)

2727

Depreciationordinary depreciation is calculated on a straight-line basis over the financial life of the operating equipment, based on historic cost. A similar policy applies to intangible fixed assets. Depreciation is classified as ordinary operating expenses. leasing costs entered in the balance sheet are depreciated in accordance with the plan and liability is reduced by rent paid minus calculated interest.

Stock and raw materials and consumablesStocks of products are valued at the lower of cost price on a ‘first-in-first-out’ basis and anticipated sale price. Cost price for manufac-tured goods comprises direct materials, direct salary plus a proportion of indirect manufacturing costs, whereas cost price for purchased goods is the acquisition cost. raw materials and consumables used for the year consist of the cost price of sold goods with a supple-ment for write-downs in accordance with standard accounting practice at year-end.

receivablesreceivables are entered at nominal value minus anticipated loss.

Pension commitments and pension expensesuntil 31.10.2009 the parent company and norselight AS had a performance-based retirement plan. the performance-based retirement plan was replaced with a deposit-based retirement plan. further, the norwegian companies also operate an early retirement plan for the employees. the company and one of its subsidiaries in norway have also entered into unsecured pension arrangements for executive and supplementary pension for former employees. the future obligations in connection with these agreements are computed annually by an independent actuary and are included in the record pension liabilities in the balance.

pension schemes for the the norwegian companies are booked according to the iAS19 standard. pension commitments are calculated on linear accrual based on assumed number of years worked, discount rate, future return on pension reserves, future adjustment of wages, pensions and national insurance provisions and actuarial assumptions regarding mortality, voluntary redundancy etc. pension reserves are valued at actual value. net pension commitments consist of gross pension commitments minus the actual value of pension reserves. net pension commitments on under-financed schemes are entered in the balance sheet as a long-term, interest-free liability, whereas net pension reserves on over-financed schemes are entered as a long-term interest-free receivable if it is probable that the over-financing can be utilised.

Changes in the pension commitment that are due to changes in the pension plans are posted direct against equity. Changes in the pension commitment and pension reserves that are due to changes in and deviation from the calculation forecasts (estimate changes) are posted direct against equity.

net pension expenses – gross pension expenses minus estimated return on pension reserves, adjusted for the effect of changes to estimates and pension plans – are classified as ordinary operating expenses and are shown with salaries and other payments.

Deferred tax and taxDeferred tax is calculated on the basis of temporary differences between accounting and tax values at the end of the financial year. A nominal tax rate is used in the calculation. positive and negative differences are valued against each other in the same time intervals. Certain items are still valued separately, including added value from acquisitions and pension commitments. Deferred tax asset occurs if there are temporary differences that create tax deductions in the future. tax for the year consists of changes in deferred tax and deferred tax asset, together with tax payable for the year, adjusted for errors in the previous year’s calculations.

cash flow statementthe cash flow statement is prepared in accordance with the indirect method. Cash and cash equivalents includes cash, bank deposits and other current liquid resources that can immediately and with a minimal currency risk be converted into known cash amounts and with a due date of less than three months from the date of acquisition.

note 1 accounting principles (cont.)

2828

01.01. - 31.12.2009

Business areas Sales revenue and other operating revenue

Operating profit *

european professional lighting (epl) MnoK 774.9 41.8

luxo (1.05-31.12) MnoK 267.6 -5.8

Global Marine & offshore (GMo) MnoK 719.7 65.4

Group staff/other items MnoK 1.1 0.0

Sum MnOK 1 763.3 101.4

effect from performance-based retirement plan* MnoK 23.5

total Glamox Group MnOK 1 763.3 124.9

* One-time effect from termination of performance-based retirement plan

Parent GrOUP

2009 2008 2009 2008

norway MnoK 447.0 490.6 501.3 516.3

nordic region, excl. norway MnoK 19.1 141.5 324.1 256.3

europe, excl. nordic region MnoK 55.4 193.8 526.1 514.7

north America MnoK 0.7 6.4 116.5 54.9

Asia MnoK 57.6 74.9 257.5 236.1

other MnoK 28.5 20.8 37.7 28.5

total MnOK 608.3 928.0 1 763.3 1 606.8

Sales revenue and other operating revenue devided into geographical areas

note 2 Segment information

in 2008 the parent company reversed noK 6.6m of previously recorded write downs of shares in subsidiaries. in 2009, the liquidation of the company's defined benefit pension plan resulted in a positive one-time effect of noK 23.6m. further, the company's accounts have been charged with noK 5.0m in write-down of balance sheet items and other special charges. the parent company sold shares in subsidiaries to other Group conpanies in 2009. the gain of the sale amounted to noK 53m and is recorded under other financial income. in the consolidated financial statements for 2007 noK 9.7m were credited due to reversals of ealier write-downs of balance sheet items. in 2009, the termination of the defined benefit pension plan for employees in the norwegian companies resulted in a positive one-time effect of noK 23.5m which has been credited the profit and loss accounts. in addition, the consolidated financial statements have been charged with noK 17.0m in one-time costs associated with plant closures, restructuring and other special costs.

On Group level the split of the amounts are as follows: 2009 2008 2007

raw materials and consumables used MnoK 1.3

payroll and related costs MnoK 13.4 other operating expenses MnoK 1.8 -9.7Write down of fixed assets (posted on line: Depreciation of fixed assets) MnoK 0.5 total expenses MnOK 17.0 0 -9.7

termination of performance-based retirement plan MnOK -23.5

note 3 Gain on sales of assets, other operating expenses, restructuring expenses and other special expenses

2929

acquisition of business During 2009 100% of the shares in the listed company luxo ASA were acquired. luxo ASA is the parent company of the norwegian lighting Group luxo. the luxo Group is consolidated into the Glamox Group from 1st of May 2009. for a comparisson of the Group's sales revenue development from 2008 to 2009, pro forma sales revenues for both years are shown below as if the luxo Group had been consolidated already from January 2008.

Pro forma sales revenues including Luxo 2009 2008

total sales revenues and other operating income MnoK 1 915.4 2 101.6

note 4 inventory

Parent

inventory 31.12.2009 31.12.2008 change

raw materials 31 826 40 904 -9 078

Work in progress 10 637 10 001 636

Manufactured goods 44 770 53 673 -8 903

total inventory 87 234 104 578 -17 344

GrOUP

inventory 31.12.2009 31.12.2008 change

raw materials 109 803 99 925 9 878

Work in progress 32 111 35 534 -3 423

Manufactured goods 123 655 134 348 -10 693

total inventory 265 569 269 807 -4 238

note 5 Salay costs/ number of man-years/ remuneration/ Loans to employees/ Pensions etc.

Parent GrOUP

01.01 - 31.12 01.01 - 31.12

Payroll and related costs 2009 2008 2009 2008

Salaries 181 868 201 872 421 770 360 412

national insurance 27 187 30 643 71 553 56 511

pension costs 12 735 8 386 23 017 12 472

other remuneration 6 588 8 347 19 266 19 124

Payroll and related costs 228 378 249 249 535 605 448 519

termination of performance-based retirement plan -23 641 -23 538

Average number of man-years 421 475 1 261 1 126

note 3 Gain on sales of assets, other operating expenses, restructuring expenses and other special expenses (cont.)

3030

the board's declaration regarding establishing salaries and other considerations for management personnel

Guidelines for 2010the board will present to the General Assembly a statement containing the policy to determine the remuneration to leading employees within Glamox ASA according to Joint Stock public Companies Act §6-16a. in line with the Accounting Act's § 7-31b, paragraph 7, an account of the contents of the declaration are listed below:

the fundamental principle for the wage policy is that it must support the objective of keeping and attracting the best persons for the position in question.

in addition to fixed salaries, managerial employees also participate in bonus schemes for managers.

All leading employees are included in our collective deposit-based pension scheme for salaries up to 12G. the Chief executive officer also has a performance-based pension scheme for salary above 12G, as described in more detail below.

Managerial salary policies completed in 2009Salaries for leading employees in 2009 have been in accordance with the declarartion presented to the General Assembly in 2009.

the declaration for 2010, cf. requirements in the Joint Stock public Companies Act § 6-16a, will be attached to the summons to the general assembly for 2010.

Benefits for managerial persons – agreements on severance pay, bonuses, etc.

the Ceo has an agreement for severance pay of 24 months.

in his contract, the Ceo's retirement age is fixed at 65 years, having a pension scheme of 70% of the basic salary starting at 65 years of age until reaching 67. Starting at 67 years of age until reaching 70 a benefit of 65% of basic salary is applied, and thereafter 60% of basic salary. this individual pension scheme is, after deduction of benefits earned through the collective plans with current employer and benefits earned from previous employers, covered as an unsecured pension arrangement.

the Ceo has a bonus agreement based on results, limited to maximum 3 monthly salaries. in 2009, this gave a payment of 222.825 noK. this amount is related to the profit of 2008. these amounts are included in the listed item for performance-related bonuses in the summary below.

the chairman of the board has no agreement for severence pay, bonus or profit-sharing.

the Ceo, chairman of the board, nor any other person in a similar position have been given a loan, or securities been put at their disposition.

remuneration to Group Management in 2009 SalariesPerformance-related bonus

changepension*

Otherremuneration

Kjell Stamnes - president & Chief executive officer (Ceo) 2 601 223 406 140

Jan Berner - Senior vice president GMo 1 793 27 55 164

thomas lindberg - Chief financial officer 1 601 4 5 115

* Change pension = change in worked up pension rights

note 5 Salay costs/ number of man-years/ remuneration/ Loans to employees/ Pensions etc. (cont.)

3131

remuneration to Board members in 2009Director's

fees SalariesOther

remuneration

Bjørn Arnestad 240

eyvind M. olsen 120

Marianne ulrichsen 120

Heidi Marie petersen 120

Sverre valvik 20

Sverre valvik (paid to Arendals fossekompani ASA) 100

Sigmund Johansen 60 317 2

Bjørn nordvald larsen 30 188 1

randi Skipnes 30 289 2

rudi Aas 30 840 68

Henny eidem 30 457 9

total remuneration to Board 900

auditor Parent GrOUP

total auditors fee for 2009 are split as follows: 2009 2008 2009 2008

Statutory ruled auditor fee 867 857 3 447 2 322

other attestation services 0 9 195 67

tax advisory service 1 093 219 1 513 380

other services, beyond audit 300 113 471 146

total 2 260 1 198 5 626 2 916

composition of all pensions and pension obligations in norwegian companies

the company is obligated to keep an occupational pension scheme pursuant to the Mandatory occupational pensions Act. the company has a pension scheme that satisfies the requirements of this Act.

net pension funds/obligations below are only valid for norwegian companies in the Group, as pension costs in foreign subsidiaries are handled as contribution plans, which is to say that amounts paid out are charged as expenses.

the pension schemes are handled in the accounts according to iAS - starting in 2007. estimated deviations from previous years were recognized in the balance sheet and charged to equity. this year's estimated deviations are also charged directly against equity.

until 31.10.2009, the parent company and norselight, had a performance based pension retirement plan. this plan was transferred to a deposit-based retirement plan from 01.11.2009. the Group's norwegian companies operate an early retirement scheme for their employees (Afp). the Group's norwegian companies have pension schemes that include all employees over the age of 20 years old and who hold more than a 20% position.

Parent GrOUP

01.01 - 31.12 01.01 - 31.12

Pension expenses 2009 2008 2009 2008

Current value of this years pension accrual 10 510 9 437 12 275 10 012

interest cost of pension commitments 6 653 5 897 7 278 6 107

return on pension reserves -5 584 -6 947 -5 909 -7 349

termination of performance-based retirement plan -23 641 -23 538

pension defined contribution plans 1 156 9 373 3 702

net pension expenses/(income) -10 907 8 386 -521 12 472


3232

Parent GrOUP

reconciliation of pension sheme's financed 31.12.09 31.12.08 31.12.09 31.12.08

against sum in balance sheet:

Calculated pension commitments -13 896 -163 446 -29 936 -169 527

pension reserves (at market value) 0 104 063 0 109 274

net pension liabilities -13 896 -59 383 -29 936 -60 253

Financial conditions: 2009 2008

Discount rate 4.40 % 4.30 %

Anticipated salary settlement 4.00 % 4.25 %

Anticipated pension increase 4.00 % 2.00 %

Anticipated change in national insurance bare rate 4.00 % 4.25 %

Anticipated return on pension fund reserves 5.60 % 6.30 %

early retirement outtake (norwegian companies) 10.0%/40.0% 10.00 %

Standard conditions used in the insurance industry form the basis of the actuarial preconditions for demographic factors and retirement.

note 6 Specification of financial items

Parent GrOUP

01.01 - 31.12 01.01 - 31.12

2009 2008 2009 2008

other financial income 94 480 8 723 47 402 60 619

other financial expences -4 083 -60 671 -63 380 -63 864

total other financial items 90 397 -51 948 -15 978 -3 245

of this:

Agio/disagio change on opeing equity -39 262 46 486

Agio/disagio from profit & loss and balance items 40 834 -48 312 33 057 -42 698

total currency effects 40 834 -48 312 -6 205 3 788

in December 2009 the parent company sold shares in daugther companies to other Group companies as a part of a Group restructuring. the gain of this sale of noK 53m is booked under "other financial expenses" in the profit and loss statement in the parent company, but is eliminated on Group level and gives no effect on Group figures.


3333

Land/Buildings

Machinery

Fixtures and/fittings

total

Acquisition cost 31.12.08 115 865 165 081 24 504 305 450

Acquisition of tangible fixed assets 2 470 11 600 784 14 854

Disposal -401 -60 -461

acquisition cost 31.12.09 118 335 176 280 25 228 319 843

Accumulated depreciation 31.12.08 19 883 89 207 13 544 122 634


reversed accumulated depreciation of tangible fixed assets -294 -60 -354

Balance sheet value at 31.12.09 92 622 72 501 7 859 172 982

Depreciation for the year 5 830 14 866 3 885 24 581

financial life up to 20 yrs. up to 8,3 yrs. up to 8,3 yrs.

Depreciation plan Straight-line Straight-line Straight-line

further the parent company has lease agreements on operating equipment. these lease agreements are regarded as operational leasing. Annual rental amounts are noK 2.6m.

rights,it systems

it systems(leased)

total

Acquisition cost 31.12.08 45 385 62 660 108 045

Acquisition of tangible fixed assets 481 481

acquisition cost 31.12.09 45 866 62 660 108 526

Accumulated depreciation 31.12.08 43 020 62 660 105 680

Accumulated depreciation 31.12.09 11 952 62 660 74 612

Accumulated write downs 31.12.09 31 900 31 900

Balance sheet value at 31.12.09 2 014 0 2 014

Depreciation for the year 832 0 832

financial life up to 7 yrs. up to 7 yrs.

Depreciation plan Straight-line Straight-line

note 7 tangible fixed assets and intangible fixed assets - Parent

3434

note 7 tangible fixed assets and intangible fixed assets - GrOUP

Land/Buildings

Machinery

Fixtures and/fittings

total

Acquisition cost 31.12.08 232 395 252 455 116 474 601 324

Currency effects on balance with rates at 31.12.09 -15 088 -14 055 -14 354 -43 497


Acquisition of tangible fixed assets luxo 01.05.2009 28 125 12 407 5 308 45 840

Acquisition of tangible fixed assets 3 436 20 987 7 692 32 115

Disposal 0 -1 516 -10 940 -12 456


Depreciation and write downs at 31.12.08 79 039 136 318 79 576 294 933

Currency effect on balance with rates at 31.12.09 -7 790 -8 006 -10 275 -26 071

Depreciation and write downs at 31.12.08 71 249 128 312 69 301 268 862


reversed acc. depreciation tangible fixed assets 0 -1 343 -9 772 -11 115

Balance sheet value 31.12.09 168 729 117 179 32 376 318 284

Depreciation for the year 8 890 26 130 12 275 47 295

financial life up to 20 yrs. up to 10 yrs. up to 10 yrs.


further the Group has lease agreements on operating equipment. these lease agreements are regarded as operational leasing.Annual rental amounts are noK 4.0m.

rights,it systems

Productdevelopment

Goodwill total

Acquisition cost 31.12.08 122 448 54 161 176 609

Currency effects on balance with rates at 31.12.09 -2 117 -2 117

acquisition cost 31.12.08 120 331 0 54 161 174 492

Acquisition of tangible fixed assets luxo 01.05.2009 18 915 6 233 31 622 56 770

Acquisition of purchase intangible fixed assets 1 341 599 1 940

Disposal -4 587 -4 587


Depreciation and write downs at 31.12.08 119 038 53 297 172 335

Currency effect on balance with rates at 31.12.09 -1 963 -1 977

Depreciation and write downs at 31.12.08 117 061 0 53 297 170 358

Accumulated depreciation 31.12.09 83 676 716 23 798 108 190

Accumulated write downs 31.12.09 31 900 32 245 64 145

reversed acc. depreciation intangible fixed assets -4 572 -4 572

Balance sheet value 31.12.09 20 424 6 116 29 740 56 280

Depreciation for the year 3 087 716 2 746 6 549

financial life up to 7 yrs. up to 7 yrs. up to10 yrs.


3535

the company’s and the Group’s expenses on research and development are chareged to profits when they arise. r&D through acquisi-tion are still posted in balance sheet. Goodwill is depreciated over 10 years as the company believes this to be the financial life on which the assessment should be based. in the notes, all figures related to 2009 are translated at the currency exchange rates on 31.12.2009. for this reason there will be a discrepancy between depreciation for the year in the notes and depreciation in the accounts, which is calculated based on average exchange rates for the year.

Sum this years depreciation ref. note 7 53 844

Sum this years depreciation ref. profit & loss 55 142

Currency deviation = Deviation average-rate and closing-rate -1 298

note 8 Subsidiaries, and jointly controlled companies for the parent

name of company Share capital

Shareholding inGlamox aSa

Book value in Glamox aSa

tnOK

Group's vouting ownership

share

Glamox A/S, Denmark DKK 3 000 000 100.0% 7 824 100.0%

Glamox elektro AB, Sweden SeK 2 130 000 0.0% 0 100.0% 2)

Glamox electric (uK) ltd., uK GBp 2 444 290 100.0% 680 100.0%

Glamox Marketing oy, finland eur 269 101 100.0% 6 082 100.0%

AS Glamox He, estonia eeK 2 600 000 20.0% 2 723 100.0%

Glamox licht GmbH, Germany eur 3 323 000 25.0% 21 570 100.0% 2)

aqua signal AG, Germany eur 3 835 000 0.0% 0 100.0%

aqua signal teterow GmbH & Co. KG, Germany eur 511 292 0.0% 0 100.0%

Aqua Signal Corporation, uSA eur 113 469 0.0% 0 100.0%

Mariteam lighting inc., Canada CAD 2 208 000 100.0% 0 100.0%

Glamox far east pte ltd., Singapore SGD 6 000 000 98.7% 23 666 98.7% 1)

Glamox ireland ltd., irland eur 169 280 100.0% 1 787 100.0%

norselight AS, norway noK 1 000 000 100.0% 16 496 100.0%

Glamox (Suzhou) lighting Co. ltd, China Cny 20 387517 0.0% 0 98.7% 1)

Birger Hatlebakks veg 15 AS, norway noK 100 000 100.0% 1 363 100.0%

Glamox Korea Co. ltd., South Korea KrW 375 000 000 80.0% 1 523 80.0%

luxo AS, norway noK 62 832 250 100.0% 115 872 100.0%

Burton Medical products Corp, uSA uSD 3 000 0.0% 0 100.0%

luxo Corporation, uSA uSD 101 0.0% 0 100.0%

luxo uSA inc, uSA uSD 1 0.0% 0 100.0%

luxo lamp ltd., Canada CAD 1 517 153 0.0% 0 100.0%

luxo Danmark A/S, Denmark DKK 1 000 000 0.0% 0 100.0%

luxo Sverige AB, Sweden SeK 600 000 0.0% 0 100.0%

luxo finland oy, finland eur 168 000 0.0% 0 100.0%

luxo GmbH, Germany eur 512 000 0.0% 0 100.0%

luxo Schweiz GmbH, Schweiz CHf 50 000 0.0% 0 100.0%

luxo uK ltd., uK GBp 4 000 0.0% 0 100.0%

luxo norge AS, norway noK 1 000 000 0.0% 0 100.0%

total subsidiaries 199 586

note 7 tangible fixed assets and intangible fixed assets - GrOUP (cont.)

3636

1) Glamox far east pte ltd. (Singapore), owns 100% of the shares in Glamox (Suzhou) lighting Co. ltd, China. Minority interests: 1.27% of shares in Glamox far east pte ltd, Singapore 1.27% of shares in Glamox (Suzhou) lighting Co. ltd, China

2) in December 2009 the company sold 75% of the shares in Glamox licht GmbH in Germany to luxo AS. luxo AS became a wholly owned daughter-company at 01.05.2009. in December 2009 the company sold 100% of the shares in Glamox electro AB in Sweden to luxo Sverige AB. luxo Sverige AB is a wholly owned daughter-company of luxo AS.

Parent GrOUP

31.12.2009 31.12.2008 31.12.2009 31.12.2008

receivables, Group Companies 165 564 59 531

total 165 564 59 531

Balance sheet value of receivables due for payment later than one year after 31.12.09 for parent and Group:

Parent GrOUP

31.12.2009 31.12.2008 31.12.2009 31.12.2008liabilities to financial institutions 131 940 170 340 159 047 207 205

note 8 Subsidiaries, and jointly controlled companies for the parent (cont.)

note 9 receivables due for payment later than one year after 31.12.09

note 10 Liabilities and bonds

liabilities due for payment more than five years after the end of the financial year for the parent company and Group:

3737

Parent GrOUP

01.01 - 31.12 01.01 - 31.12

2009 2008 2009 2008

tax payable is calculated as follows:

ordinary profit before tax 181 679 30 960

permanent differences -53 489 -13 344

Change in temporary differences -58 328 36 964

Change defined benefit plan recognised directly against equity 22 958 -41 821

Correction on loss carried forward, changed 1.1.09 432

Applied defict to be carried forward -85 706 -12 759

Basis tax payable 7 546 0

tax payable on profit for the year 2 086 28 12 488 11 677

tax for the year is calculated as follows:

tax payable on profit for the year 2 086 28 12 488 11 677

Gross change in deferred tax 26

Correction deferred tax on profit loss, changed 1.1.09 -121

Change deferred tax/deferred tax assets 38 343 -5 401 37 068 3 139

Deferred tax on group contribution booked in balance sheet -99

income tax on income and expenses recogniced directly in equity -6 428 11 710 -6 695 12 067

total tax for the year 33 907 6 238 42 861 26 883

total tax for the year on group level:

norwegian companies 34 576 6 908

foreign companies 8 285 19 976

total tax for the year 42 861 26 884

Parent GrOUP

Specification of basis for deferred tax: 31.12.2009 31.12.2008 31.12.2009 31.12.2008

Differences offset:

fixed assets 21 225 13 510 23 498 15 783

intra-group receivables -46 418 -53 516

other current assets -2 903 590 -3 503 -10

liabilities -5 489 -7 011 -7 161 -7 161

net pension reserves/commitments -13 896 -59 383 -14 272 -59 759

Gross basis for deferred tax: 47 482 -105 809 -1 439 -51 147

Deficit to be carried forward (incl. remuneration) -85 706 -64 280 -132 110

untaxed profit 83 537 83 322

reduction regarding intra-group receivables 46 418 53 516

Basis for deferred tax assets: -1 064 -137 999 17 818 -99 935

calculated deferred tax assets 298 38 641 -3 901 34 442

- not posted as deferred tax assets in balance sheet -5 267 -6 541

net deferred tax assets posted in balance 298 38 641 -9 168 27 900

note 11 tax

3838

Parent GrOUP

31.12.2009 31.12.2008 31.12.2009 31.12.2008

Spesification of posting in balance sheet

Deferred tax assetes posted in balance 298 38 641 16 828 45 398

Deffered tax posted in balance -25 996 -17 498

net deferred tax assets posted in balance 298 38 641 -9 168 27 900

the Group Management and Board does a continuous evaluation of the amount they consider to be secure to book in the companies balance sheet, based on the expected future income and realistic tax adaptation. Based on these evaluations noK 16.8m have been booked as deferred tax assets in the balance sheet. the accounts of the parent company have in total write-downs on receivables in subsidiaries of noK 46m. these write-downs are done without any tax reductible effect, but are not included in the synopsis of basis of deferred tax above since there is some uncertainty if or when the difference will be reversed.

Parent Share capitalOther

reserves

Other equity total

equity 31.12.2008 65 989 135 454 75 806 277 248

change in equity for the year:

profit for the year 147 772 147 772

proposed dividends -32 994 -32 994

Defined benefit plan actuarial gains (losses) 22 958 22 958

Change deferred tax on change defined benefit plan -6 428 -6 428

other equity effect -235 -235

equity 31.12.2009 65 989 135 454 206 879 408 321

GrOUP Share capital

Other

reservesreserves in

GroupMinorityinterests total

equity 31.12.2008 65 989 135 454 182 606 10 384 059

change in equity for the year:

profit for the year 66 617 -541 66 076

proposed dividends -32 994 -32 994

Defined benefit plan actuarial gains (losses) 23 913 23 913

Change deferred tax on change defined benefit plan -6 695 -6 695

Submitted equity from the minority in Korea 375 375

equity 31.12.2009 65 989 135 454 233 447 -156 434 733

note 11 tax (cont.)

note 12 equity and sharesholders

3939

Ownership structure:

the largest shareholders in Glamox aSa at 31.12.2009 were: total sharesShareholding/

Voting

Arendals fossekompani ASA 32 927 889 49.90 %

fondsavanse AS 15 160 083 22.97 %

Skagen vekst 5 944 034 9.01 %

Sundial 2000 limited 2 334 729 3.54 %

Havfonn AS 1 600 316 2.43 %

vicama AS 1 560 659 2.37 %

Kjell Stamnes 1 391 750 2.11 %

Snefonn AS 1 059 080 1.60 %

erik Must 939 388 1.42 %

Dag Henning larsen 582 121 0.88 %

total 10 largest 63 500 049 96.23 %

other 2 488 619 3.77 %

total shares 65 988 668 100.00 %

Shares and options owned by Board members and the Group Management:

name Position Shares

Kjell Stamnes president & Ceo 1 391 750

thomas lindberg Cfo 25 488

Henny eidem Board member 14

Share capital and shareholder information:

Share capital in Glamox aSa at 31.12.2009 consist of: number

nominal value

Balance sheet

Shares 65 988 668 1 65 989

total 65 988 668 1 65 989

All shares have the same voting rights

note 12 equity and sharesholders (cont.)

4040

Parent GrOUP

31.12.2009 31.12.2008 31.12.2009 31.12.2008

Secured balance sheet liabilities

liabilities to financial institutions 209 645 247 958 272 182 291 020

Balance sheet value of assets pledged as security for secured liabilities:

land, buildings etc. 92 622 95 982 147 898 153 356

Shares 2 723 26 389

inventory 87 234 104 578 206 260 236 868

Accounts receivable 87 646 84 583 181 922 191 015

total 270 225 311 532 546 181 581 239

the same assets that are pledeged as security in the parent company are also security for liabilities in the subsidiares. in the loan agreements, the lenders also have demand to keyfigures as eqiuty ratio, debt ratio etc.

on Group level shares in subsidiaries, with a total equity of noK 256m, are pledged as security.

Parent GrOUP

31.12.2009 31.12.2008 31.12.2009 31.12.2008

Account receivables 42 090 41 448

loan to Group companies 181 586 68 503

total receivables on Group companies 223 676 109 951 0 0

Account payables to Group companies 19 656 18 137

total payables to Group companies 19 656 18 137 0 0

Parent GrOUP

31.12.2009 31.12.2008 31.12.2009 31.12.2008

Guarantee liabilities

Guarantee liabilities towards third party 192 224 192 224

note 13 assets pledged as security and guarantee liabilities

note 14 Outstanding accounts against Group companies and associated companies

4141

Parent GrOUP

31.12.2009 31.12.2008 31.12.2009 31.12.2008

liquidity reserve 151 685 208 158 356 671 347 337

the liquidity reserve is a result of summing up the overdraft facility lines for each of the Group companies, reduced with the drawn credit, and added all cash on hand and deposits. the liquidity reserve for the Group is organized in a Multi Currency Cashpool. this implies that the cash deposit of the subsidiaries formally are account receivables towards the parent company, and all participating group companies are jointly responsible for overdraft within the Cashpool. Accounts with deposit and debt within the cashpool are netted in the group balance sheet. locked-up deposits in Glamox ASA amount to noK 7.8m. locked-up depositis in norwegian Group companies amount to noK 10.0m.

related parties are Group companies, major shareholders, board and senior management in the parent company and the group subsidiaries. Agreements on remuneration for Group Management appear in note 5. no transactions or agreements of significance were entered into with related parties in 2009 or in the financial years for which comparison figures are given, other than standard business transactions with subsidiaries and associated companies.

note 15 cash etc.

note 16 related parties for parent company and Group

4242

the Group’s attitude and aims relating to financial market risk are important in the assessment of earnings and value.

this note deals with what interest and currency risk the group is exposed to and what means are used to manage the risk in check.

a) interest risk and control

the aim of the Glamox Group is to follow the general long-term development in money market interest levels. the effects of short-term fluctuations in money market interest levels can be reduced by controlling the loan portfolio’s average interest duration and by managing when the interest fixing is due.

underlying loan agreements and financial instruments (interest derivatives) can be used to partly manage the interest risk.

interest-bearing liabilities at 31.12.09 are noK 278m. of these noK 109m are noK liabilities. As of 31.12.09, the company had noK 63m of fixed interest loans where the noK liabilty part was noK 39m.

net interest-bearing liabilities, including bank deposit, was noK 71m at 31.12.09. Based on the loan portfolio at 31.12.09, the Group’s interest expenses on an annual basis will change by approximately noK 0.1m for each 1% change in interest.

b) currency risk and control

operational cash flow (transaction risk)

Glamox is exposed to transaction risk by purchasing and selling in different currencies. purchase and production expenses are mainly in noK and eur, with sales mainly in noK, eur, SeK, DKK, GBp and uSD.

Glamox aims to minimize the risk of value changes in net cash flow due to short-term fluctuations in exchange rates. transaction risk is controlled by means of internal invoicing rules, matching of income and expenses in the same currency and by using financial instruments (forward contracts and currency options).

By 31.12.09 the Group had forward contracts on sales of current currencies. the total sales amount was noK 17m based on 31.12.09 rates.

Equity in foreign subsidiaries

Glamox is exposed to book value changes in equity in foreign subsidiaries. Changes in the value of equity for foreign subsidiaries are partly offset by loans in the same currency.

note 17 Financial market risk

4343

2009 2008 2007 2006 2005

SAleS/profit

1. totAl inCoMe MnoK 1763.3 1606.8 1593.8 1353.1 1227.9

2. operAtinG profit/loSS MnoK 124.9 147.5 158.4 106.8 70.3

3. profit/loSS Before tAX AnD eXtrAorDinAry iteMS MnoK 108.9 144.3 134.5 86.5 48.0

4. profit/loSS Before eXtrAorDinAry iteMS MnoK 66.1 117.4 93.8 89.4 47.2

profitABility

5. operAtinG MArGin % 7.1 9.2 9.9 7.9 5.7

6. GroSS profit MArGin % 6.2 9.0 8.4 6.4 3.9

7. GroSS profit MArGin % 3.7 7.3 5.9 6.6 3.8

8. totAl profitABility % 15.8 16.4 18.3 14.5 9.0

9. return on eQuity % 39.3 35.9 32.0 40.5 36.9

CApitAl/liQuiDity

10. Current rAtio 2.2 2.4 2.1 1.7 2.0

11. CASH floW MnoK 146.0 164.1 179.2 127.5 93.2

12. CASH floW froM ACtivitieS MnoK 162.9 39.7 165.6 53.2 (8.6)

13. eQuity MnoK 434.7 384.1 330.7 291.7 236.4

14. eQuity rAtio % 39.3 35.9 35.0 33.6 30.1

15. inveStMentS MnoK 36.1 51.1 44.4 45.3 144.4

SHAre-relAteD Key fiGureS

16. eArninGS per SHAre noK 1.00 1.78 1.42 1.39 3.14

17. DiluteD eArninGS per SHAre noK 1.42 1.39 0.75

18. CASH floW per SHAre noK 2.21 2.49 2.72 1.99 6.19

19. DiluteD CASH floW per SHAre noK 1.97 1.44

20. BooK eQuity per SHAre noK 6.59 5.82 5.01 4.52 10.06

21. DiluteD BooK eQuity per SHAre noK 4.43 3.55

5) Operating margin: operating profit/loss as a percentage of total sales revenue and other operating revenue.6) Gross profit margin: profit/loss before tax and extraordinary items as a ercentage of total sales income and other operating revenue.7) net profit margin: profit/loss before extraordinary items as a percentage of total sales revenue and other operating revenue.8) total profitability: profit/loss before tax plus financial costs as a percentage of average total capital.9) return on equity: profit/loss after tax as a percentage of average equity.

10) current ratio: Current assets in relation to current liabilities.11) cash flow: profit/loss before tax and extraordinary items, minus tax payable, plus ordinary depreciation.12) cash flow from activities: from cash flow statement. net cash flow from operating activities plus net cash flow from investing activities.13) equity: Book equity including minority items and subordinated loans.14) equity ratio: Book equity including minority items and subordinated loans as a percentage of total capital at 31.12.15) investments: investments excluding leased assets. 16) earnings per share:

profit/loss after tax per share for the years 2008 and 2009 are calculated based on 65 988 668 shares.profit/loss after tax per share for the year 2007 are calculated based on 65 988 668 shares, after converting of shares from subordinated loan.profit/loss after tax per share for the year 2006 are calculated based on 64 180 928 shares, after converting of shares from subordinated loan.profit/loss after tax per share for the year 2005 are calculated based on 15 050 391 shares.

17) Diluted earnings per share: profit before tax adjusted with interest on subordinated loans, calculated based on total shares (sum ordinary and convertible shares). the company has paid back a subordinated loan during 2006. this loan is not included in the calculation of diluted earnings per share.

18) cash flow per share:Cash flow per share for the years 2008 and 2009 are calculated based on 65 988 668 sharesCash flow per share for the year 2007 is calculated based on 65 988 668 shares, sum after converting of shares from subordinated loan. Cash flow per share for the year 2006 is calculated based on 64 180 928, sum after converting of shares from subordinated loan. Cash flow per share for the year 2005 is calculated based on 15 050 391 shares.

19) Diluted cash flow per share:Cash flow adjusted with interest on subordinated loans calculated based on total shares (sum ordinary and convertible shares).

20) Book equity per share:Book equity (not incl. subordinated loans) divided on number of ordinary shares

21) Diluted book equity per share:total book equity incl. subordinated loans, divided on number total number of shares (sum ordinary and convertible shares).

KeY FiGUreS

4545

Glamox aSaDrammensveien 175p.o. Box 163, Skøyenno - 0212 oSlo

tel. +47 22 02 11 00fax. +47 22 02 10 72www.glamox.com

PrOFeSSiOnaL BUiLDinG SOLUtiOnS

Sales UnitsNorwayGlamoxLuxoLightingOsloTel +4722021100/+4722574000Fax +4722021102/[email protected]@luxo.nowww.luxo.com

SwedenGlamoxLuxoLightingABStockholmTel +4684498340/+46317465100Fax +4687798356/[email protected]@luxo.sewww.luxo.se

DenmarkGlamoxLuxoLightingA/SIshøjTel +4543550260/+4544200700Fax +4543550270/[email protected]@luxo.dkwww.luxo.dk

FinlandGlamoxLuxoLightingOYVantaaTel +358108410440/+358207288840Fax +358108410464/[email protected]@luxo.fiwww.luxo.fi

TheBalticareaASGlamoxHEKeila,EstlandTel +3726712300Fax [email protected]

GermanyGlamoxLichtGmbHBremenTel +49421485705Fax [email protected]

LuxoGMBHHildesheimTel +49512170600Fax [email protected]

UnitedKingdomGlamoxElectric(UK)Ltd.NorthamtonTel +441604635611Fax [email protected]

LuxoU.K.LTDMitcham,SurreyTel +442086873370Fax [email protected]

IrelandGlamoxIrelandLtd.DublinTel +35314500755Fax [email protected]

USALuxoCorporationElmsford,NewYorkTel +19143450067Fax [email protected]

BurtonMedicalProductsCorp.Chatsworth,CaliforniaTel +18187018700Fax [email protected]

CanadaLuxoLampLtd.QuebecTel +14506885896Fax +14506817105

Production UnitsNorwayGlamoxProductionMoldeTel +4771246000Fax +4771246001

LuxoProductionKirkenærTel +4762949200Fax [email protected]

SwedenGlamoxLuxoProductionMålillaTel +46495249900Fax [email protected]

EstoniaASGlamoxHEKeilaTel +3726712300Fax +3726712305

USABurtonMedicalProductsCorp.Chatsworth,CaliforniaTel +18187018700Fax [email protected]

46

GLOBAL MARINE & OFFSHORE

Sales UnitsGermanyaquasignalAGBremenTel +4942148930Fax [email protected]

USAAquaSignalCorporationCary,IllinoisTel +18476396412Fax [email protected]

NorwayGlamoxInternationalMoldeTel +4771250400Fax [email protected]

SingaporeGlamoxFarEastPte.Ltd.Tel +6567481977Fax [email protected]

ChinaGlamox(Suzhou)LightingCo.Ltd.SuzhouTel +8651262525977Fax [email protected]

CanadaMariteamLightingInc.NewFoundlandTel +17097532373Fax [email protected]

Production UnitsGermanyaquasignalTeterowGmbH&Co.KGBremen/TeterowTel +4939961420Fax +49399614210

NorwayNorselightASHaldenTel +4769179999Fax +4769179989

CanadaMariteamLightingInc.NewFoundlandTel +17097532373Fax +17097532180

ChinaGlamox(Suzhou)LightingCo.Ltd.SuzhouTel +8651262525977Fax +8651262525997

KoreaGlamoxKoreaCo.Ltd.BusanTel +82519717200Fax +82519719273

47

Glamox aSaDrammensveien 175p.o. Box 163, Skøyenno - 0212 oSlo

tel. +47 22 02 11 00fax. +47 22 02 10 72

www.glamox.com

Ar2009101

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