Business News. Expect Dollar to Remain Weak. Inside this issue: Events Calendar AmCham AGM Event Reviews Former Ambassador Swett.

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1 Business News The Official Newsletter of the American Chamber of Commerce in Denmark Member of the AmCham Network No. 3 Vol. 4 April 2005 Inside this issue: Events Calendar AmCham AGM Event Reviews Former Ambassador Swett. 3 Jutland Committee Explores Weak Dollar HR Committee Explores Flexible Benefits Membership Member News New Members AmCham Denmark welcomes new members: Patron Scientific-Atlanta Denmark Patron Upgrade Hilton Copenhagen Airport Corporate Gorrissen Federspiel Kierkegaard Corporate Upgrade Ogilvy Danmark Atlas Stord Velux Associate (MBE) Mail Boxes Etc. Greater Richmond Partnership, Inc. For complete company listings, see last page. Anders Møller Christensen, Danmarks National Bank, and Christopher C. Horner, Competitive Enterprise Institute, a Washington DC think tank, discuss the dollar at the event. Expect Dollar to Remain Weak Expect the dollar to be from $1.30 to $1.50 against the euro in one year, and don t underestimate the impact of China on international monetary policy. That was the consensus of a panel of experts at The Effects of a Weak Dollar on Global Trade, AmCham s March 17 executive forum at Jyske Bank Headquarters in Silkeborg. About 40 executives attended. China is financing large amounts of the U.S. debt by keeping its yuan pegged artificially to the dollar, Former U.S. Ambassador to Denmark Swett Addresses AmCham, page 3 Sponsors: despite the robust growth of the Chinese economy. This creates what Christopher Horner, Director of Research, European Enterprise Institute, described as a 40% subsidy for China s currency, creating an artificial manufacturing and trade advantage. Competitive Factors and Impacts in the Competition of Currencies As Horner sees it, the U.S. economy is at least half full. He said that the cont on page 4 Danish Minister of Taxation to Speak at AGM, page AmCham Business News April 2005

2 Chamber News AmCham Calendar: For a complete Events Calendar visit our website: April ESAC 2005 Thursday, April 14 Symbion Science Center Nordic Challenges Security Conference AmCham Partner Event Monday, April 18 Copenhagen Marriott Annual General Meeting Wednesday, April 27 15:30-18:30 KPMG May Membership Get Oriented Friday, May 13 15:30 17:00 AmCham Offices Business Breakfast Michael C. Ruettgers, Chairman EMC Corporation Tuesday, May 24 08:15 10:30 Business Breakfast John W. Bachmann, Chairman U.S. Chamber of Commerce Tuesday, May 31 08:15 10:30 June AmCham Member Event Investing in the U.S. Regional Promotion Wednesday, June 8 13:00 17:30 HR Committee Event Psychological Testing Thursday, June 16 08:15 10:30 Amcham Denmark Welcomes Taxation Minister Jensen Danish Minister of Taxation Kristian Jensen will address AmCham members, colleagues, and friends at AmCham Denmark s Annual General Meeting, hosted by KPMG on April 27. Minister Jensen will offer his insights on Denmark s readiness to compete in a global economy from both a taxation policy and overall Danish policy point of view. For a full AGM program and to register for this event, visit Kristian Jensen, Danish Minister of Taxation New Associate Membership Requirements The AmCham Board of Directors has adopted a new policy requiring members with more than 15 employees to be at the Corporate or higher membership level. As part of this change, AmCham will be actively approaching Associate member companies that exceed this number to upgrade their membership to Corporate. Nordic Challenges 2005 Security Conference Unisys, in cooperation with fellow AmCham members EMC and Cisco, will be holding the Nordic Challenges 2005 Security Conference on April 18 at the Copenhagen Marriott Hotel. AmCham members receive a special discount on participation. For more information and to register, go to Trade Mission to Estonia The U.S. Embassy in Tallinn, Estonia invites interested parties to participate in their Trade Mission to Narva, May 23-25, This two day mission, cohosted by the Narva Business Advisory Services, will start with a general introduction in Tallinn followed by seminars and pre-arranged business meetings with potential partners in Narva. For more information, please contact the U.S. Embassy in Estonia, Economic Section, Tel: or seppr@state.gov AmCham Business News April 2005

3 Event Review Swett Tells Executives How Architects Can Lead By Design Sven Felding (L), and Ebbe Harder (R), of the Royal Danish Academy of Fine Arts, School of Architecture, present Ambassador Swett the Academy s publication of Surveys in 1961 on St. Thomas and St. Croix. Former Ambassador Richard N. Swett, CEO Swett Associates (right), and the event panellists (L to R): Klaus H. Ostenfeld, CEO, COWI; Kjartan Langvad, Managing Director, E. Pihl & Søn; Peter Wedell-Wedellsborg, MAA, REFORM Architects. Too many architects and others in the design industries are warming the bench instead of being on the active roster in corporate boardrooms, in the diplomatic corps and in politics. That s the view of Richard N. Swett, former U.S. ambassador to Denmark. Swett, the author of justpublished Leadership By Design: Creating an Architecture of Trust, urges business executives from various sectors to recruit more design-trained professionals. Swett made his remarks at AmCham s April 5 breakfast meeting and panel discussion at the Hilton Copenhagen Airport. About 60 executives from at least 15 sectors attended. The former ambassador said that design professionals in business leadership roles can create more habitable and efficient workplaces; set a positive tone for the wider community; and organize spatial and technological information throughout the organization. Industry leaders shared their own takes on Swett s idea. This is a huge, very relevant topic, said panelist Klaus H. Ostenfeld, President & CEO, COWI, the global engineering consultant. He said the key is for designers to create the long-term consensus to implement the concept Swett described. Ostenfeld called for more multi-disciplinary educational programs to do that. The Danish government taking inspiration from a similar initiative in The Netherlands is exploring ways to integrate design approaches through various ministries, said panelist Peter Wedell-Wedellsborg, Partner, Architect MAA, REFORM. Panelist Kjarten Langvad, Managing Director, E. Pihl & Søn, the Danish building contractor, said that to accomplish what Swett envisions, builders must demonstrate how their projects can benefit their clients bottom line. Swett said the pressing global needs for environmental sustainability, security, infrastructure construction, More than 60 architectural industry and business executives gathered at the Hilton. AmCham members Eskil Westh, Amrop Hever, and Ole Wiberg, FUHU, network at the event. and information management call for the input of more architects and other designers. Langvad said that he urges colleagues in the design field to get involved in public service and politics. Many respond that they know nothing about politics. That doesn t seem to stop the politicians, he added AmCham Business News April 2005

4 Event Review cont from page 1 Per Munkholm Poulson, Managing Director, Jyske Bank, welcomes attendees to the event. Panel members Per Månsson, Novozymes; and Ib Fredslund Madsen, Jyske Bank; take questions from the audience. Michael Meyer, Gorrissen Federspiel Kierkegaard; Lars Wittig, Global-Eyes; and Søren Stæhr, Gorrissen Federspiel Kierkegaard; network at the reception hosted by Jyske Bank. Per Munkholm Poulsen, Jyske Bank; and Claus Vastrup, Århus University; during a break in the program. Jyske Bank welcomes AmCham by flying the American flag beside the Danish flag at the bank's Silkeborg headquarters AmCham Business News April 2005 dollar s current weakness against the euro is not a radical change from recent policy. Horner s biggest disagreement with other panelists: The U.S. can and should grow instead of tax its way out of its debts. He also said that a temporarily weak dollar is not unusual, and the structural foundations of exchange value remain sound. The Weak Dollar: Consequences for the U.S. Current Account and Asian Currencies Ib Fredslund Madsen, Head of the Economic Research Department, Jyske Bank, said that despite its recent fall, the U.S. dollar is likely to remain the world s reserve currency in the foreseeable future. Exporters can expect the global economy to grow at a slow, but still reasonable, rate in Further, the U.S. trade deficit should soon start to shrink in response to the dollar s drop against the major currencies, Madsen told the executives. Asian currencies, meanwhile, are due for a revaluation. The likely options include a revaluation of three to five percent, or pegging to a basket of currencies instead of the dollar, he said. The Asian Currencies vis a vis the Euro and the Dollar The U.S. current account and budget deficits as well as Japanese and Chinese financing of U.S. debt are threats to international monetary policy, Claus Vastrup, Economics Professor Aarhus University, told the executives. This is an unstable situation because the low dollar and China pegging its yuan to the dollar have enabled Asian economies to invest heavily in U.S. government securities. If those economies sour on the dollar, then the currency could tumble. This could eventually hurt European economies. The Dollar and the Danish Exchange-Rate Policy Stability is the guiding principle of Danish monetary policy. Anders Møller Christensen, Assistant Governor and Head of Economics, Denmark s National Bank, said the bank s interest and exchange-rate policies steady and insulate the krone. The Danish fixed-exchange-rate policy is oriented solely toward the euro. Other factors, such as cyclical economic performance in Denmark, are not considered in monetary policy here, he said. Since the euro fluctuates against other currencies, such as the U.S. dollar, the Danish krone s rate against these currencies (and the effective krone rate) also fluctuates. How to Handle Dollar Risks as a Danish Exporter Danish exporters can manage their dollar risks in a number of ways, according to Per Månsson, Executive Vice President & Chief Financial Officer, Novozymes A/S. Månsson said that for Novozymes, the keywords are global and flexible. Novozymes covers its bases by factoring into its long-term strategies the overall competitive landscape as well as indirect elements such as raw materials and energy costs. The company has implemented global sourcing, flexible pricing, and market fragmentation, and makes transactions based on its forecasts of exchange rate fluctuations.

5 Committee News Lars Kragh, Leif Hansen Consulting Engineers; and Ulla Bruun de Neergaard, UBN Consulting; network over breakfast. HR professionals Winnie Holm, ALD Automotive; Anette Landberg, Oracle Danmark; Annette Bjørke, Amerada Hess; and Tina Frydensberg, Deloitte; shared their experiences with Flexible Benefits programs. Flexible Benefits Offer New Options Now that the rug has been pulled out from under stock options, what are the alternatives for companies seeking competitive packages to attract, motivate, and retain employees? More American subsidiaries here are exploring flexible benefit systems in which employees pick from a menu of benefits based on their own needs. Interest in such systems intensified since Danish lawmakers in 2004 made global stock option programs subject to mandatory, unique Danish employment law, changing the rules and costs for companies that use this tool. AmCham Denmark s Human Resources Committee brought in specialists to discuss flexible benefit best practices, experiences, and trends at a March 15 breakfast Round Table and panel discussion hosted by Deloitte. More than 50 executives attended. There were recurring themes to what flexible benefit users such as Oracle Danmark, ALD Automotive, and Deloitte have learned and endorse for others. Chief among those themes: salary is not the only factor, and companies should consider flexible benefits overall as ways to instill a company s values in employees, said event moderator Annette Bjørke, HR Manager, Amerada Hess. Speakers Anette Landberg, HR Director, Oracle; Winnie Holm, Nordic & Baltic HR Manager, ALD; and Tina Frydensberg, Tax Partner, Deloitte, touched on the other themes. These experts said that for flexible benefits to work, they must be clear enough for employees to know their value as part of the full remuneration package; visible enough to enhance the company s reputation as an attractive place to work; varied enough so each employee can choose what they really need; adaptable enough to sprinkle new offers on top (such as non-taxable newspaper subscriptions, parking spaces, or on-site gym memberships); and effective enough to get measurable results like higher retention rates or employees acknowledging that they are satisfied without adding significant costs. Gunnar Moeskjaer, Møbeltransport Danmark; and Britta Ankerstjerne, AON Denmark; attend the HR event. Holm said that ALD Automotive has learned that for a flexible benefit plan to work, it is essential to have an integrated IT system to administer it, external tax and legal experts to check it, and time for employees to get used to it. It also makes sense to start slow and add benefits over time, she added. The experts agreed that creative flexible benefits enable employees to craft plans to match their own financial situations, and that predicting exactly what each employee will choose is impossible. Bjørke added that the best flexible benefit systems create a happier workforce and a competitive edge, and show that a company cares about employees by meeting their needs throughout their working lives AmCham Business News April 2005

6 Event Review Executives Get Oriented at Membership 101 Graduating Class January 14 Graduating Class February 4 Graduating Class March 11 Graduating Class April 1 About 70 AmCham member representatives have graduated from the Chamber s Membership 101 orientation course so far. Has your company participated yet? Membership 101 is the chamber s ongoing initiative to communicate how to manage and get the most out of your AmCham membership. The first five informal sessions have established the procedure: New and continuing member representatives convene, network in a relaxed atmosphere, and learn more about how AmCham can help create value for their companies in Denmark and internationally. The sessions are held in the chamber s new meeting room and feature informative presentations about AmCham s structure, network, and services. A reception follows. Attendees also receive their AmCham company membership certificate. Because our services have expanded so dramatically, these orientation sessions are win-win situations, says Stephen Brugger, AmCham s Executive Director. Several points have been emphasized in the sessions: AmCham s international referral service for members looking to do business in other countries, via the European Council of American Chambers of Commerce and the Chamber s global network; the Chamber s growing contingent (nine at this writing) of sector and issue committees; and the company promotions program in conjunction with the U.S. Embassy in Denmark (which Brugger calls a slam dunk for American enterprises here as well as Danish companies with American interests). You get out of AmCham what you put into it. Let AmCham show you how. The next 101 session is slated for Friday, May 13. Contact the Chamber or visit our website to register. Membership 101 s take-home message Membership 101 students are presented their certificate of completion following the seminar. Each participant receives their company AmCham membership certificate following the presentation. AmCham membership is not a personal membership, but a company membership, which is open to your entire management team AmCham Business News April 2005

7 Member News Marriott invites members to Open House The Copenhagen Marriott Hotel will be holding an open house on Sunday, May 1, from 12 to 17:00, where visitors will have the opportunity to take a backstage tour at Hotellet Bryggen 5. The hotel offers meeting and banquet facilities for up to 600 guests, and recognizes that individual needs will vary based on the types and goals of various arrangements. To give open house visitors a taste for what the Marriott has to offer, the hotel will be offering full tours, including the banquet area designed to show several different set up options. For more information, contact Lars Emanuelsen, Director of Event Management, on Reception in the Lakeside restaurant at Simon s The AmCham Cup 2005 on September 2 is assured even better food and service than in the past. Keld Johnsen, owner, and Lasse Frederik Jensen, sous chef, from The Diplomat restaurant in the U.S. Embassy have entered into an agreement with Simon s Golf Course in North Zealand to take over operations of the Lakeside restaurant. AmCham members are invited to attend a reception on April 17, from 14:00 16:00 where Keld and Lasse will show the facility and share their goals and aspirations. They will also offer a sample of their world class cuisine and fine wines. For more information, contact Keld or Lasse on or madvin@post9.tele.dk. RESTAURANT RESTAURANT LAKESIDE LAKESIDE New MD at Cisco AmCham Denmark welcomes new Cisco Managing Director, Mogens Bransholm, previously Cisco s Service Director for the Nordic and Benelux Countries. Bransholm assumed his responsibilities on March 14. Cisco will hold a reception for Mr. Bransholm on April 20 from 15:00-18:00 at their offices in Søborg. Brenntag Welcomes New MD AmCham Denmark welcomes Michael Pieters, new Managing Director, Brenntag Nordic. Mr. Pieters assumed his responsibilities from retiring Managing Director Geoffrey Bromige on January 1, From the Embassy Visa Waiver Program (VWP) Starting October 26, 2004, visa waiver travelers--including children of any age--from all 27 Visa Waiver Program countries were required to present either machine-readable passports (MRP) or U.S. visas to enter the U.S. However, the Department of Homeland Security's Customs and Border Protection Bureau gave immigration officials at ports of entry the discretionary authority to grant one-time exemptions on a case-by-case basis to certain VWP travelers, including Danes, who did not present MRPs. This special one-time exemption ends on April 25, After this date, Danes traveling on the old-style passports issued before March 1997 will not be permitted to board a flight to the U.S. without a visa. For complete information on the VWP, please visit where you can also see a sample of a machine-readable passport AmCham Business News April 2005

8 New Members AmCham Denmark Welcomes 4 New Members and 4 Member Upgrades Patron: Patron Upgrade: Corporate: Flemming Toft Jesper Manigoff Scientific-Atlanta Denmark A/S Augustenborg Landevej Sønderborg Tel: Fax: Website: Main Areas of Business: Cable TV and Telecommunications Flemming Toft, Managing Director Tobaksvejen 23A 2860 Søborg Tel: Jesper Manigoff, Managing Director Associate: MBE (Mail Boxes Etc.) Lyngbyvej Copenhagen Ø Tel: Fax: Main Areas of Business: Mail, post, freight forwarding and services Business Markets: Denmark Jørgen Bechmann, Director, BDM Allan Agerholm Hilton Copenhagen Airport Ellehammersvej Kastrup Tel: Fax: Website: Main Areas of Business: Hotel and conference center Business Markets: Denmark Allan Agerholm, GM Corporate Upgrade: Torben Levinsen Atlas Stord A/S Islevdalvej Rødovre Tel: Fax: Website: Main Areas of Business: Plants and equipment for evaporation processing Business Markets: World-wide Torben Levinsen, President Søren Stæhr Gorrissen Federspiel Kierkegaard Silkeborgvej Århus C Tel: Fax: Website: Main Areas of Business: Law Firm Business Markets: World-wide Søren Stæhr, Partner Karen Østergaard Ogilvy Danmark Aldersrogade Copenhagen Ø Tel: Fax: Website: Main Areas of Business: Service Company/Communication Business Markets: Europe Karen Østergaard, Country Manager Greater Richmond Partnership, Inc. 901 E. Byrd Street, Suite 801 Richmond, VA Tel: (001) Fax: (001) Website: Main Areas of Business: Economic Development of Richmond, VA Business Markets: World-wide Gregory H. Wingfield, President AmCham Business News April 2005 AmCham Business News Managing Editor: Stephen Brugger Writer and Editor: Scott Berman Event Photos: AmCham Layout & Design: Woer Gregorius Printed on: Contact Information: AmCham Denmark Christians Brygge 28 DK Copenhagen V Phone (+45) Fax (+45) mail@amcham.dk Jørgen Tang-Jensen Velux A/S Ådalsvej Hørsholm Tel: Fax: Website: Main Areas of Business: Roof windows, sun screening, roller shutters, flashings, and solar energy Business Markets: World-wide Jørgen Tang-Jensen, CEO