Terma A/S Annual Report 2010/11

Management’s Review 2010/11
6 Annual Report 2010/11
Management’s Review 2010/11
The fiscal year 2010/11 has been
characterized by a high level of
activities in all Business Areas and by
increased contributions from our international
operations.
Based on the result of the year, Terma
has a solid foundation for continued
business development with planned
and controlled growth.
Terma’s product line is experiencing increased competition as
a result of our customers’ national budget cuts and increase in
expenses related to participation in international conflicts and
establishment of security measures locally as well as internationally.
For Terma, the change in market conditions has implied:
• Development of standard products which, due to their modular
design, can be adapted to the customers’ individual requirements.
• Expansion of Terma’s international presence to facilitate increased
sales, adaptation and development of local applications, and
project implementation close to our customers.
• Enhanced efficiency within business processes, IT systems,
and organizational structure in consideration of our customers’
requirements for even higher quality, lower prices, and on-time
delivery performance.
The revenue for the fiscal year was MDKK 1,416 with a profit before
tax of MDKK 62 and a profit after tax of MDKK 46. The revenue
constitutes a 27 % growth compared to the previous year. The fiscal
year 2010/11 has been characterized by a high level of activities
in all Business Areas and by increased contributions from our
international operations.
Terma’s organizational structure consists of four Business Areas
with companies in Denmark, the U.S., The Netherlands, Germany,
and Singapore. The four Business Areas are:
1. Aerostructures: Advanced structures for defense and nondefense
aircraft and helicopters.
2. Integrated Defense and Security Systems: Communication,
command, and control systems; airborne and naval self-protection
systems; and control rooms and radio dispatch solutions for
emergency preparedness units and for the protection of critical
infrastructure.
3. Radar Systems: Radar systems for coastal, naval, and vessel
traffic surveillance as well as perimeter and Green Border
surveillance and surface movement surveillance in airports.
4. Space: Electronics, software, software validation, and services for
space applications.
All Business Areas and international companies have identical
business procedures and processes supported by a shared IT system.
Business procedures and processes are optimized on a continuous
basis via Lean activities and training of employees and managerial
staff.
With the establishment of the Terma Academy, we have completed
training of approximately 40 members of the managerial staff
from across our Business Areas and companies, and new training
programs will be executed in the coming years.
At the end of the fiscal year, total staff was 1,200 employees. Total
staff is expected to remain essentially unchanged in the year to
come.