APPENDIX A, COUNTRY DATA 1. Profile Population: Denmark Proper: 5.2 million Faeroe Islands: .47 Greenland: .54 .54,000 Population Growth Rate: Negligible Religion: Lutheran (97 percent) Government System: Constitutional Monarchy Head of State: Queen Margrethe II Head of Government: Prime Minister Poul Nyrup Rasmussen (Social Democrat) Languages: Danish (most business people speak English) Work Week: 37 hours, Monday through friday 2. Domestic Economy In millions of U.S. dollars unless otherwise stated converted from Danish Kroner (DKK) using the 1993 average exchange rate of DKK 6.48 = $1.00. P = Projected. 1993 1994P 1 995P GDP at current prices 135,325 143,000 150,000 GDP Growth Rate (Real) 1.2% 3.5% 2.9% Per Capita GDP, current prices($) 26,081 27,500 28,500 Government Spending (Percent/GDP) 54.3% 55.8% 56.2% Inflation (percent) 1.3% 1.9% 2.0% Unemployment Rate (Pct./Labor Force) 12.2% 11.7% 11.0% Foreign Exchange Reserves, Yr End 11,539 11,000 11,000 Average Dollar Exchange Rate(DKK): 6.48 6.50 6.50 Total Foreign Debt (Percent/GDP) 31.1% 26.4% 22.5% Debt Service Ratio 1/ 9.5% 8.0% 6.4% 1/ Due to the composition of Danish Foreign Debt with significant short-term "roll-over or swap-like" debt, this figure covers net interest payments on the foreign debt as a percentage of total export income. 3. Trade: (In millions of U.S. dollars based on the 1993 average exchange rate of DKK 6.48=$1.00.) 1993 1994P 1995P Total Commodity Exports (fob) 37,342 39,500 42,000 Exports to U.S.A. 1,896 2,000 2,100 U.S. Share 5.1% 5.1% 5.0% Total Commodity Imports (cif) 30,703 34,000 37,000 Imports from the U.S.A. 2/ 1,418 1,500 1,600 U.S. Share 4.6% 4.4% 4.3% 2/ Figures include Danish trade with Puerto Rico (which is negligible). Note: Danish trade figures by HS or SITC chapters for 1993 are not available due to EU Single Market transitional problems with trade statistics. End Note Imports of Manufactured Goods in 1992 (SITC 5-9 less Gold) Total (From World) 24,053 From the U.S.A. 1,401 U.S. Share of Manufactured Imports 5.8% Manufactured Goods Balance with U.S.A. -36 Projected Average Annual Growth Rate Through 1996 From World 6.5% From the U.S.A. 6.0% Imports of Agricultural Goods in 1992 (SITC 0-1-21-22-24-29-4) From World 4,805 From the U.S.A. 182 U.S. Share of Agricultural Imports 3.8% Agricultural Goods Balance with U.S.A. in 1992 224 Trade Balance with Three Leading Partners (1993, estimated) Germany 2,231 Sweden 396 United Kingdom 788 Top-Five U.S. Exports to Denmark in 1993 HS 84.71 (Computers) 102 HS 84.73 (Computer parts) 93 HS 99.10 (Military equipment) 82 HS 85.24 (Mostly computer media) 51 HS 24.01 (Tobacco) 43 Top-Five U.S. Imports from Denmark in 1993 3/ HS 89.01 (Ships) 151 HS 02.03 (Pork meat) 113 HS 16.02 (Canned pork) 108 HS 94.03 (Furniture) 89 HS 35.07 (Enzymes) 86 3/ Danish statistics treat figures on exports to the United States of plastic toy blocks (Lego) and insulin (Novo) as "business confidential". These exports likely came close to 100 million dollars each in 1993. Source : Danish Bureau of Statistics. 4. Investment The following is derived from Danish Central Bank statistics: FDI in Denmark by Country of Origin (annual inflows in millions of kroner) 1990 1991 1992 1993 TOTAL ALL 11,692 11,097 6,556 11,629 (percentage of GDP) (1.5%) (1.3%) (0.8%) (1.3%) of which EU total 4,249 4,965 3,605 5,032 of which -United Kingdom 2,292 420 614 1,491 -France 303 1,390 193 269 -The Netherlands 901 1,362 548 1,395 -Germany 566 511 1,879 1,770 -Other 187 1,282 371 107 Nordic total 6,449 5,217 2,109 5,155 of which -Finland 232 85 188 94 -Norway 3,007 2,569 254 2,009 -Sweden 3,210 2,561 1,656 3,046 United States 381 379 402 673 Japan 32 76 42 18 FDI in 1992 and 1993 were distributed as follows (as a percentage of total FDI value: 1992 1993 Investment Expansion 37 45 Acquisition 33 32 New Investment 7 9 Operating Cost Transfers 23 14 FDI in Denmark, Distribution by Sectors (annual inflows in millions of kroner) 1990 1991 1992 1993 TOTAL ALL 11,692 11,097 6,556 11,629 of which Food/Beverages 921 247 446 359 Chemical Industry 557 382 314 966 Machinery 368 81 17 1,400 Electronics 455 3,065 735 121 Other Manufact. 1,410 666 1,233 396 Total Industry 3,711 4,441 2,746 3,242 Agriculture and Raw Materials 332 78 129 473 Trade/Services 2,585 3,459 1,504 1,883 Transport and Communication 2,241 1,069 628 258 Banking 71 0 0 24 Other Financial Sector 1,256 627 457 1,946 Real Estate Trade and Administration 285 598 459 910 Other 1,211 823 633 2,893 Repatriation of FDI in Denmark (annual outflows in millions of kroner): 1990 1991 1992 1993 TOTAL ALL 4,227 1,764 4,469 1,230 of which EU total 1,186 669 2,871 533 Nordic 2,880 1,004 1,542 369 United States 33 39 6 310 Danish FDI abroad by Country of Destination (annual outflows in millions of kroner): 1990 1991 1992 1993 TOTAL ALL 12,014 15,391 11,740 10,811 (Percentage of GDP) (1.5%) (1.9%) (1.4%) (1.2%) of which EU total 7,806 8,295 7,317 4,728 of which -United Kingdom 2,220 2,389 3,466 2,069 -France 2,908 509 740 670 -The Netherlands 562 257 259 541 -Germany 1,213 985 814 514 Nordic total 1,700 2,903 2,693 2,074 of which -Finland 83 195 249 269 -Norway 273 294 342 409 -Sweden 1,344 2,414 2,089 1,396 Eastern Europe 10 60 91 265 United States 1,263 635 669 1,511 Japan 187 173 167 172 Repatriation of Danish FDI abroad (annual inflows in millions of kroner): 1990 1991 1992 1993 TOTAL ALL 2,002 2,278 2,711 7,013 of which EU total 1,054 1,789 1,547 5,273 Nordic 327 138 762 646 United States 560 201 39 31 The following major direct investments (acquisitions) in Denmark have taken place since 1990 and include companies with more than 200 employees. Costs of acquisitions are not available (Source: Danish Competition Council and Embassy records): Year Investor Company Acquired -1990: Edeka, Germany HOKI, Retail Chain Nora, Norway Danish Fancy Food - Food Processing -1991: Group Scete, France Samson Transport Forwarding Agent and Transporting Company Nord Mills, Sweden Havnemoellen, Milling Unilever Alfa Solo, Margarine Producer -1992: AGIV, Germany Bruel and Kjaer - Electronic Measuring - Instruments Waste Management, USA A number of waste treatment companies. -1993: Procuritas MBO Invest, UK Axtrades, Several Activities Amstrad PLC, U.K. Dancall Radio A/S, Mobile Telephones IBM Danmark A/S, USA EDB Gruppen A/S, Computer Systems and Services Gnosjoe Gruppen, Sweden Expedit A/S, Shop Metal Furniture and Equipment Codan Insurance, U.K. Hafnia Insurance A/S Christiani and Nielsen A/S, Thailand Intertec Contracting A/S, Electrical and Mechanical Engineering Companie Generale des Eaux, France Krueger Group, Water Treatment GEA A.G., Germany Niro A/S, Spray Drying Equipment Swedish Investors Nordchoklad A/S and A/S Nordic Candy Howden Group PLC Novenco Industries, Heating, Air Conditioning and Ventilating Equipment and Systems Drewsen Specialpapiere, Germany and Stora Papyrus, Sweden Silkeborg Papirfabrik A/S, Paper Producer Kverneland Group, Norway Taarup Maskinfabrik A/S, Agricultural Machinery