Annual Report 2010 The TORM Foundation Jonas Høgh-Christensen world champion dinghy Finn class and Olympic sportsman Photo: Mick Anderson, for the Danish Sailing Association
The TORM Foundation and the result for the year Profit before tax for the year was DKK 6.9 million for 2010 compared to DKK 22.3 million in 2009. The Foundation s revenue comes primarily from return on shares in TORM A/S and return on liquid assets and bond holdings. Accordingly, profit is influenced by the fact that TORM A/S did not pay out dividends in 2010. In 2010, grants of an overall DKK 21.9 million were allocated to non-profit causes and TORM employees, compared to DKK 90.1 million in 2009. Major donations and grants in 2010 are described below. The majority of the Foundation s committed capital is placed in TORM shares; the Foundation owns 6.3% of the shares. In addition, the Foundation holds shares worth approximately DKK 1 million. The Foundation s equity as at 31 December 2010 was DKK 297.8 million compared to DKK 353.1 million in 2009. The decrease in equity is a result of developments in share prices of the Foundation s shareholding. Expectations for 2011 TORM did not pay out dividends in 2011, and for this reason, the Foundation is expected to make a profit of the order of DKK 5 million. TORM has stated that plans are in place to implement a capital increase with pre-emption rights for shareholders of the order of USD 100 million. TORM s Board of Directors will make the final decision concerning this when the circumstances are right. The Foundation, which owns 6.3% of the shares in TORM, has stated that it intends to subscribe its pro rata stake in the issuance once the final decision has been made. WORKING ON A TORM TANKER TORM FONDEN Annual Report 2010 2
Grants and awards The Foundation s objective is mainly to provide support to individual past or present employees of TORM. The Foundation also provides support to associations for seafarers in need and other institutions with similar charitable purposes. The Foundation primarily supports charitable causes connected with the sea and associated activities. Below are details of significant and major awards granted in 2010. TORM employees In 2010, the Foundation s support to TORM office employees in Denmark and internationally as well as to seafaring employees amounted to DKK 16.9 million, allocated to individuals and employee associations within TORM. The Foundation s donations to employees and for employee activities are given to help make TORM a particularly attractive workplace, where individuals as well as teams are given support. With TORM s international growth and the establishment of offices in Singapore, Mumbai, Manila and Stamford, the Foundation has naturally also extended its support to employees and employee associations in these offices, tailored to local needs and wishes. The Foundation also provides scholarships for promising TORM employees. Support to TORM employee associations In 2010, TORM s office-based employee associations received grants totalling DKK 10.7 million. Donations to employee associations, cultural associations and particularly sports associations provide an opportunity to create extra activities and promote cohesion. Especially the support to TORM s sports association enables employees to meet and promote their health through participation in running, fitness and other sporting activities. Family day in Denmark (from Vallensbæk harbour) and India (TORM day) Concomitant with a focus on individual support, health and team-building activities, it is also important to remember the families behind each TORM employee. This is why the Foundation supports holiday opportunities and family days organised by the employee associations, which bring employees and their families together for activities and shared experiences. TORM FONDEN Annual Report 2010 3
Winners of the TORM employee award 2010: Jerabhai Tandel, Bosun, TORM India and Gitte Nielsen, Bunker Manager, Copenhagen. photo thomas tholstrup The TORM Foundation s employee award TORM is people, and together, the many thousands of employees help to run TORM by means of their diligent, dedicated work and collaboration. However, each employee is also an independent person whose special efforts and collaboration help to make TORM a good place to work and help to make TORM a success. Their personal efforts serve as examples to other people. The Foundation wants to give recognition here, and this is why TORM s Employee Award was instituted in May 2010. Support for TORM seafarers More than 3,000 seafarers aboard TORM ships help to ensure efficient, competent operation of the vessels. In 2010, the Foundation supported the TORM Association of Ships Clubs represented on all TORM ships with a major donation in connection with setting up the VSAT program to give individual seafarers the opportunity to keep in touch with their families and communities and to receive information about them using efficient, modern communications. The selection committee received numerous nominations from managers and employees from offices and ships, and the choice fell on Gitte Nielsen, Bunker Manager, Copenhagen and Jerabhai Tandel, Bosun, TORM India. TORM FONDEN Annual Report 2010 4
Donations to Danish shipping With its donations to seafaring institutions, the Foundation seeks to contribute to the development of seafaring and to create a strong framework and opportunities for seafarers in Denmark and internationally especially in the countries in which TORM operates. In general, Danish shipbuilding received support by grants to the Association for Promotion of Shipping ( Foreningen til Søfartens Fremme ), conferences and to campaigns for Blå Danmark ( Blue Denmark ), which helps to put the spotlight on seafaring and the many opportunities and training programmes available within Blå Danmark. Sailing with the Danish training ships is a proud tradition that has laid the foundations of many a career in the Danish merchant navy. The Foundation supports this via donations to the training ships Georg Stage and Danmark, which give many young people the opportunity to become acquainted with seafaring, to learn teamwork and to pit themselves against all sorts of conditions that are very different from everyday life ashore. Support for maintenance of sailing ships is particularly in focus here. Seamen s churches The seamen s churches in the major ports and commercial centres have been and still are of great importance to seafarers. The Foundation is proud to support the work of the Danish Seamen s Churches, in particular providing direct support to the churches in Rotterdam, New York and Singapore, where TORM has offices and employees seconded. The Danish seamen s church in Singapore TORM FONDEN Annual Report 2010 5
Non-profit causes In giving grants to non-profit causes, the Foundation s primary motivation is to direct support to activities and initiatives that relate to the sea and life at sea. Support for Danish sailing Creating a good framework and opportunities for sailing and water sports is a prerequisite and the basis of an interest in the sea and the maritime environment for business or pleasure. Since 2004, the Foundation has given broad-based support to Danish water sports, with a special emphasis on developing sailing activities and youth work, with initiatives and activities that help to attract girls and boys alike to water sports and hold their interest, to help them find the courage to pit themselves against the elements, to challenge one another and to work together. The Foundation awards grants that pay out over several years in order to create continuity and dynamics in this work, particularly for young people and for sailing activities as well as talent. In 2010, in addition to supporting existing work and development, special emphasis was put on trainer development and training concepts via the preparation of tools for the Aldersrelateret TræningsKoncept (age-related training concept) for example, tutor books with exercises and trainers packs that trainers can use in the clubs, as well as training programmes for the trainers. In developing these tools, there was particular emphasis on the need for both play and training in order to maintain the interest of children and young people, both for those who think sailing should be fun and for those who take part in competitions. The Foundation also provides support for TORM activity trailers with windsurfing equipment, kayaks, wetsuits and life jackets which help to create additional activities for children and young people within the sailing clubs. Alberte Holm Lindberg at the World Cup meet in Hyères, France. Photo: Mick Anderson, for the Danish Sailing Association TORM FONDEN Annual Report 2010 6
CLASS 3.A FROM LUNDBY SCHOOL, TÅSINGE, Denmark, ON AN OUTING TO TROENSE SAILING CLUB. PHOTO: THE DANISH SAILING ASSOCIATION Activity days have also been put on at 18 sailing clubs with activities for schoolchildren to encourage them to take an interest in sailing. Sailing club volunteers driven by their own passion are what it takes to grow active seafarers and to attract young people to water sports and retain their interest. The TORM Foundation seeks to give recognition here and to highlight such people by the institution of two awards the TORM Foundation Youth Leader Award and the TORM Award to a sailing club that has made a special effort to promote interest in water sports. Danske Kyster [ Danish coasts ] TV series Denmark is surrounded by the sea, and this fact is of major significance in our history, commerce, leisure and perception of nature. Together with other shipping foundations, the Foundation has contributed to supporting the TV production Danske Kyster, which describes life around our coastlines, such as commercial areas, recreational areas, leisure and nature above and below the waterline. The six-part series will be shown in summer 2011. TORM FONDEN Annual Report 2010 7
The new Danish Maritime Museum in Elsinore The Foundation is one of the major contributors to the new Danish Maritime Museum in Elsinore, where construction work is already well under way. Once completed in 2013, it will provide an exciting showcase for Danish seafaring historically but also with an emphasis on contemporary seafaring and its significance to Denmark. Together with the cultural shipyard and a renovated Kronborg, the museum will contribute to a dynamic, attractive and interesting cultural area in Elsinore, for the benefit of all Danes and the many tourists who visit the area. Sculpture shipyard workers The cultural shipyard also incorporates a shipbuilding museum for Helsingør Skibsværft, where many TORM ships were built. Together with other shipping foundations, the Foundation has agreed to support the erection of a sculpture of shipyard workers to honour the many who helped to build the ships and who helped to create a unique maritime history and the success of Danish shipping. Renovation of the shipping monument at Langelinie With grants from the Foundation and others, the renovation of the shipping monument at Langelinie dedicated to the memory of fallen seafarers in the First World War is now under way, with completion and reinstatement anticipated for summer 2011. Other general support Although the Foundation s general support is primarily aimed at activities and projects that relate to shipping and the sea, the Foundation also seeks to support individual humanitarian causes. Mogens Hansen, youth leader, Brøndby Strand sailing club Youth leader prize 2010 presented by maiken Ødegaard For instance, donations have been given through Danmarks Indsamlingen (the Denmark fundraising campaigns) and Save the Children s projects in Somalia to give children and young people the opportunity to receive education and to demonstrate that there are other, positive ways of creating a future for themselves in Somalia. TORM FONDEN Annual Report 2010 8
Board and administration Pursuant to the Deed of Foundation, the members of the TORM Foundation Board are the Chairman of TORM s board, TORM s CEO, a member of TORM s board and an employee at TORM. The latter two members are appointed by TORM s board. The Board of the TORM Foundation Niels Erik Nielsen Chairman, TORM A/S Member of the board since 2002 Chairman since 2002 Christian Frigast Deputy Chairman, TORM A/S Member of the Board since 2000 Jacob Meldgaard CEO, TORM A/S Member of the Board since 2010 Maiken Ødegaard Vice President, TORM A/S Member of the Board since 2008 Administration Auditor Ernst & Young Jens Bjergmose Managing Director photo: Thomas Tholstrup TORM FONDEN Annual Report 2010 9