ANNUAL REVIEW PART 1
ANNUAL REPORT 2017 | 11 |
During the year, the investment portfolio
increased around DKK 10 billion to DKK 54
billion, impacted by cash inflow from the
LEGO Group, return from the investment
portfolio and positive cash flow from
Renewables.
PEOPLE RESOURCES
In the KIRKBI Group’s core activities,
employees are the single most critical
resource. The KIRKBI Group’s results are
accomplished thanks to the motivation
and commitment of the employees. As
part of the overall corporate strategy,
employees and management work
together to continuously secure job
satisfaction and a strong working
environment.
In 2017, the average number of full-time
employees in the KIRKBI Group was
16,909 against 17,136 in 2016. These
numbers are exclusive of the employees
in Merlin Entertainments plc. More than
97 % of the employees work in the LEGO
Group.
All employees of the LEGO Group and
KIRKBI are subject to a Performance
Management Programme, which aims to
link business goals with individual emplo-
yee goals. This programme includes a
tiered bonus scheme.
RISKS
The KIRKBI Group’s risks primarily relate to
developments within the global markets
where the LEGO Group is active, the
market for family entertainment and
other leisure activities, and the financial
markets.
RESEARCH AND
DEVELOPMENT ACTIVITIES
The Parent Company does not engage
in research or development activities.
Group enterprises conduct research
and development within their respective
business areas.
EXPECTATIONS FOR 2018
The investment activities will be impacted
by the development in the global
economy in 2018 and hence it is difficult
to express clear expectations of the
results for the year. The objective for the
KIRKBI Group is to create satisfactory
long-term returns.
The year 2018 has started acceptable
from a financial point of view. The overall
result for 2018 for the KIRKBI Group is
expected to be satisfactory.