Report of the Board of Directors 2009

NGI's values are trust, teamwork, vitality and integrity. In 2009, NGI implemented its new strategy for the next four years (2009-2012). Focus is set on strategic competence enhancement, creative solutions through cooperation with clients and partners, and maintaining NGI as an attractive, visible and proactive organization.


NGI's board from the left: Klaus j. Hansen, Ingrid Sølvberg, Magnus Sparrevik, Johannes Kjøde, Steinar Nordal, Marie Nordby, Arne T. Wiiger, Suzanne Lacasse (Managing Director NGI), Jon Frøisland (Chair).

NGI's quality policy aims at offering services to satisfy the needs of clients, increase cooperation with clients and partners, and increase focus on the significance of quality and quality services. NGI's quality management system is certified according to ISO 9001 by the British Standard Institution (BSI). NGI's environmental and soil mechanics laboratories are accredited by Norwegian Accreditation (NA).

Financial result in 2009
The profit and loss accounts for 2009 showed an operating result of +7.4 MNOK. The total income in 2009 amounted to 309 MNOK, a 25 MNOK increase from 2008. Net income (sold hours) in 2009 amounted to 242 MNOK, an increase of 15 MNOK from 2008. NGI's income came from projects (294 MNOK) and basic funding from The Research Council of Norway (15 MNOK). Assignments from The Research Council of Norway through basic funding and strategic research programs amounted to 20 MNOK, or 6.5% of the total income in 2009. In addition, NGI also received 3.5 MNOK in 2009 (1% of total income) to cover part of its national responsibility within snow avalanche research. The remaining 92% of NGI's income came from assignments for industry and public agencies, both in Norway and abroad. Assignments outside Norway amounted to more than 106 MNOK in 2009, an increase of 33 MNOK from 2008, and represented 34% of the total income. NGI has a solid equity and very good liquidity. The Board is confident that the accounts for 2009 provide a correct picture of NGI's assets and liabilities, financial position and results for 2009.

Personnel
At the end of 2009 NGI had 205 permanent employees. More than 75% of the employees have university education, 27% of the permanent employees are of non-Norwegian origin and we have employees from more than 30 countries. In addition, NGI annually hosts more than 25 visiting research scientists and post-doctoral research fellows from abroad.

Salary and other personnel related expenses, including holiday pay, overtime, pension scheme and social welfare expenses, amounted to 178 MNOK in 2009. During the period 2005-2009, 20 employees were granted stipends from the NGI Research Stipend Fund. This fund provides funding for sabbatical leave for NGI's employees and funding for PhD studies. NGI also invested in several additional measures for development of expertise.

Work environment
In 2009, sickness leave was 3.4%, of which 2 % was related to long term sick leave for a few employees. Short term leave (1-3 days) was 1.1 %. Safety and environmental aspects are handled according to the conditions of the Norwegian Health and Safety at Work Act. NGI sets priority on increased awareness on work safety and preventive health measures for its employees. The work environment at NGI is good and NGI works to maintain this. Job satisfaction and enthusiasm, contentment with colleagues, work and workplace, strong focus on professional aspects and clients, good social relationships and good work conditions are characteristics of the work environment at NGI.

Equal opportunities
NGI provides equal opportunities for all employees, both related to recruitment and other aspects. NGI is a high competence expertise organization where the level of education is very high. Within the building and construction and offshore oil and gas market sectors, there are traditionally fewer women than men.

At the end of 2009, NGI had 27 % women among its 205 permanent employees. This is an increase from 25 % women in 2008. Men and women have equal salaries and are given the same opportunities, positions and challenges, provided they have the same competence. There is no distinction between male and female candidates for recruitment or internal promotion. There are four women in NGI's management group of 12 (3 women amongst the 11 Division Directors), and the Managing Director is a woman. Among the five external members of NGI's Board, there are three women and two are men.

Future prospects
The market prognosis and possibilities within NGI's areas of activity in 2010 are good, but adaptation to the challenges posed by the financial crisis in 2008 and 2009 must be made. NGI has a good reserve of projects at the start of 2010, and is well equipped to handle necessary adjustments. NGI expects 2010 to be a prosperous year, both professionally and economically. In 2003 NGI succeeded in the competition for a Centre of Excellence and established International Centre for Geohazards (ICG). NGI established the Centre in cooperation with the Universities of Trondheim (NTNU) and Oslo (UiO), NORSAR and the Geological Survey of Norway. This opened several new and exciting research and market opportunities. The Research Council of Norway's halfway evaluation of ICG in 2007 resulted in a brilliant recognition of the work underway and renewed funding until 2012. This long term research also contributes to build up NGI to meet future challenges.

In its strategy for the period 2009-2012, NGI is pursuing new market areas, including alternate and environmentally friendly energy, storage for CO2 and radioactive waste, and challenges in the arctic areas.

Acknowledgement
NGI's Board expresses its gratitude to NGI's personnel for an excellent result and huge efforts in 2009. The Board also thanks NGI's clients, partners and The Research Council of Norway for their trust and help over the years. Based on this and given NGI's expertise and reputation, the Board is optimistic for NGI's future development.


NGI's Board of Directors

Chair, Jon Frøisland, Infrastructure Construction, director The Norwegian National Rail Administration
-  deputy, Jens Melsom, Technical Director

Deputy Chair, Ingrid Sølvberg, Director, Platform technology and  marine investigations, Statoil
-  deputy, Torbjørg Opedal, Department Director

Member, Bente Nyland, Director General, The Norwegian Petroleum Directorate
-  deputy, John Kjøde, Director

Member, Klaus J. Hansen, Regional Director, Veidekke AS  
-  deputy, Ketil Gunde Andersen, CFO

Member, Marie Nordby, Chief Engineer, The Climate and Pollution Agency
-  deputy, Hilde Beate Keil, Senior Engineer

Employee repr. Arne Thune Wiiger, NGI
Employee repr. Magnus Sparrevik, NGI

Observer, Steinar Nordal, Professor - Civil Engineering, Geotechnics, NTNU