ANNUAL REPORT 2009

P. 4-7 2009 HIGHLIGHTS
P. 8 CEO'S REPORT
P. 9-11 ABOUT BLOM
P. 12 VISION AND STRATEGY
P. 13 LASER SCANNING TO REDUCE CLIMATE CHANGE EFFECTS
P. 14 SEABED MAPPING
P. 15-18 MARKETS
P. 19-21 FINANCIAL ANALYSIS
P. 22-25 BOARD OF DIRECTOR'S REPORT
P. 26-31 BLOM GROUP ACCOUNTS
P. 32-63 NOTES TO THE BLOM GROUP ACCOUNTS
P. 64-68 BLOM ASA ACCOUNTS
P. 69-77 NOTES TO THE BLOM ASA ACCOUNTS
P. 78 AUDITOR'S REPORT
P. 79 BOARD OF DIRECTOR'S RESPONSIBILITY STATEMENT
P. 80-83 CORPORATE GOVERNANCE
P. 84 BOARD OF DIRECTORS
P. 85-86 INFORMATION ON SHARES IN BLOM
P. 87 ADDRESSES

2009 HIGHLIGHTS

2009 HIGHLIGHTS
5

KEY FIGURES

(Amounts in NOK 1000)

	IFRS 2009	IFRS 2008* adj.	IFRS 2007	IFRS 2006	IFRS 2005

Sales turnover:
Operating revenues	736 901	821 684	707 553	547 970	411 530
Results:
EBITDA	92 306	109 308	152 216	109 472	77 643
EBIT	-53 832	27 968	88 551	63 282	58 042
EBT	-93 960	17 768	412 264	34 181	49 159
Net profit/loss for the year	-83 012	13 302	398 566	62 675	39 312
Capital:
Current assets	704 592	704 878	800 268	587 375	382 404
Long-term assets	709 003	837 540	686 984	838 061	391 598
Current liabilities	326 723	418 158	358 042	545 944	235 600
Long-term liabilities	389 342	268 964	305 292	506 332	348 917
Equity	697 530	855 296	823 918	373 160	189 485
Balance sheet total	1 413 595	1 542 418	1 487 252	1 425 436	774 002
Margins:
Net operating margin (%)	-7.31	3.40	12.52	11.55	14.10
Net profit margin (%)	-11.26	1.62	56.33	11.44	9.55
Profitability:
Return on total assets (%)	-9.03	1.85	6.08	5.75	12.26
Return on equity (%)	-10.69	1.10	66.59	22.28	29.38
Financial strength:
Equity ratio (%)	49.34	55.45	55.40	26.18	24.48
Liquidity:
Current ratio	2.16	1.69	2.24	1.08	1.62
Acid test ratio	1.35	1.11	1.71	0.75	1.21
Key figures per share:
Earnings	-2.04	0.33	9.79	1.81	1.26
Cash flow	1.55	2.33	11.36	3.51	1.89
Dividend	0.00	0.00	0.00	0.00	0.00

Cash flow Net profit/loss for the year + ordinary depreciation

Net operating margin Operating profit/loss x 100/net operating revenues

Net profit margin Net profit/loss for the year x 100/net operating revenues

Return on total assets (Profit/loss before extraordinary items + financial expenses) x 100/average total assets

Return on equity Net profit/loss for the year x 100/average equity

Equity ratio Equity x 100/total assets

Current ratio Current assets/current liabilities

Acid test ratio (Liquid resources + financial investments + debtors)/current liabilities

2008 adjusted for irregularities with documentation in recognition of income at Blom Sistemas Geoespaciales.

2009 HIGHLIGHTS

REVENUES AND EARNINGS IN 2009

Sales revenue of NOK 737 million, EBITDA of NOK 92 million
Successful issue of a new bond loan of NOK 300 million
Corporate management strengthened by two additional people
Dirk Blaauw is the new Chief Executive Officer (CEO)
Håkon Jacobsen appointed as Chief Operating Officer (COO)
Lars Bakklund appointed as new Chief Financial Officer (CFO)
Enhanced and optimised operations, including restructuring of the company's operating units
New offices established in France and the Netherlands, and all the Nordic companies were linked together in a new Nordic unit

GEO ENGINEERING SERVICES

Sales revenue of NOK 618 million
Signed a framework agreement valued at NOK 105 million for laser scanning of all of Sweden to create a new nationwide elevation model
Signed major contracts with the Finnish and Dutch authorities for laser scanning of parts of Finland and the Netherlands
Won a major contract with the Italian Ministry of the Environment for laser scanning
Entered into an important framework agreement in the UK for laser scanning for use in flood calculations
Established the Telaer STA consortium with two subsidiaries of the Italian Finmeccanica Group for the delivery of data to the Italian authorities
Won a contract with the Italian Ministry of Defence for a large bathymetric laser scanning project
Entered into an agreement for bathymetric laser scanning of the US Gulf Coast
Won a contract for bathymetric laser scanning of the Bulgarian Black Sea Coast
Won a major contract with the Italian Ministry of the Environment for the delivery of orthophotos
Won a major contract with the Italian company ENI for the delivery of sensor services in connection with oil and gas production projects
Entered into a contract with Kortcenter.dk for the survey and digitisation of 170 cities in Denmark
Won a contract for the digitisation of telecommunication cables in Greenland
Won a contract for aerial magnetic measurements on the Norwegian continental shelf

INFORMATION SERVICES

Sales revenue of NOK 119 million in 2009
Completion of BlomURBEX™ for online distribution and sales of the company's aerial photos, data models and solutions
Entered into a strategic cooperation agreement with Infoterra, a wholly owned subsidiary of the Astrium EADS Group for the sale and delivery of the company's databases
Created Europe's largest library of more than 200 3D city models
Won several contracts for the Photonav™ navigation solution, which included the French company Archos and Finnish company Verkkokauppa.com
Launched GPS with Blom's oblique photos in Scandinavia
Launched a navigation solution for iPhone that can be downloaded from the AppStore
Signed a framework agreement with the Norwegian company Webtop Solutions for BlomURBEX™ for use in real estate prospectuses
Won a contract with Deutsche Bahn AG for the delivery of orthophotos and 3D models

2009 HIGHLIGHTS | 7

SALESTURNOVER 2008–2009:

(Amounts in NOK 1000)

2008 adjusted for irregularities with documentation in recognition of income at Blom Sistemas Geoespaciales.

EBITDA 2008–2009:

(Amounts in NOK 1000)

CEO'S REPORT

2009 has been an exciting, yet challenging year for Blom. The company has been impacted more than expected by the economic decline in Europe. Both revenues and sales were weaker than what was anticipated in the company's budgets.

The company has, however, made a focused effort in accordance with the long-term strategy that has been established for our two respective business areas, and we are satisfied with the underlying long-term creation of value that has taken place throughout the year. Blom is still the leading and the largest company in Europe in its field. Our employees possess unique expertise and experience, which enables the company to deliver innovative products, services and solutions of high quality adapted to the commercial solutions demanded by the market at any given time.

In 2009 our revenues totalled NOK 737 million, and our EBITDA margin was 12.5 per cent. In the Geo Engineering Services market, in which we have shown and expect long-term stable growth, we have won a number of the largest and most important contracts in Europe in the year that has passed. I would in particular like to point out our expertise in the use of various laser scanning solutions.

Bathymetric laser scanning has become an important area of focus for the company over the last year, and we are satisfied with the results of this focus. As a leading supplier in Europe in this field, the company has been awarded several contracts for environmental surveys of rivers and coastal zones. Laser scanning is used increasingly in connection with the monitoring and analysis of the environment and surveying of large and small areas of land. In addition to a project in which we are creating a nationwide elevation model for all of Sweden, we are also creating corresponding models for areas in Finland and the Netherlands.

During 2009 we completed the development of our own geoserver, BlomURBEX™, in Spain. We are now able to deliver updated data and services through various connections to the server. We have received a great deal of positive feedback from our customers for this service. We can now deliver updated databases for a number of products ranging from nationwide orthophotos to advanced 3D city models and oblique images through BlomURBEX™. We are comfortable that the substantial investments we have made in our databases and server technology will provide satisfactory long-term earnings in this business area.

In 2009 we have worked on establishing an improved operational corporate structure at the same time as we have strengthened our financial control functions through several new recruitments. In 2010 we will continue our increased focus on internal communication and closer cooperation across national borders, with the aim of increasing productivity and have optimal exploitation of our resources.

To ensure access to a greater section of the market in Europe with our expertise, we have made a focused effort to establish strong partner relationships in Europe. Following, we are very satisfied that we have expanded our long-term relationship with Microsoft and their investment in BingMaps. We believe that through our cooperation with Tele Atlas/TomTom we will represent a significant component in several of their products. We have long-term expectations that cooperation with such strong brand names will establish the foundation for new exciting business opportunities.

In addition, we have established cooperation with companies, such as Infoterra (EADS subsidiary) and Finmeccanica Group, with a high level of technical expertise and experience ranging from satellite data aimed at specific customer groups to partial or full government links. We gain access to additional expertise through such cooperation, at the same time as we can offer services based on a combination of satellite and airborne information. We believe that the demand from professional customer groups seeking higher level and differentiated services will increase in the years to come. Our goal is to serve this market.

The company has a stable customer base with large public and private customers. We see that our customers return regularly because they experience that we strive to deliver our products and services at the agreed time and with a high level of quality. We would like to thank our customers for the confidence they have placed in us by choosing us as a supplier of business critical services.

In spite of 2009 being a challenging year, the long-term value creation for our shareholders has always been in focus. We believe that with Blom's ability to create value in the long-term will reward the company's shareholders in the long-term. The company's leading position in Europe, combined with our strong resource base and our ability to innovate, will form the foundation for higher revenues and stronger margins in 2010.

I would like to take this opportunity to thank all of my colleagues for their excellent efforts throughout the year that has passed, and I am looking forward to continued good cooperation in the years to come. In 2010 we will increase our focus on development of the expertise represented by each individual, which will in turn form a foundation for strengthening the company's long-term value creation.

BLOM INTRODUCTION

ABOUT BLOM

The company produces and develops unique European databases of images, 3D models and map data, as well as various solutions, including solutions for navigation and location-based services.

The demand for advanced and high quality geographical information is growing rapidly. Blom has a strong position in the digital map data market today, and aims at becoming the most innovative and preferred service provider of online geographic information in Europe. Today Blom is the largest company in Europe for airborne collection of geographic referenced information. Blom has gone from being a traditional map company focusing on the collection and processing of map data to a leading driving force in the development of new technologies and solutions related to geographic information as a tool and decision-making basis. Examples here include solutions and tools for urban and regional planning, engineering, monitoring and maintenance of major infrastructure facilities, navigation, 3D modelling, and forest and coastal monitoring. The company focuses on the mobile Internet and handheld mobile unit segments. Blom delivers data, data models and solutions to local government, central government, trade and industry and the consumer market, and it enables its customers and partners to create applications based on the company's databases.

In recent years Blom has made several important strategic moves in light of the rapidly growing market within geographic information. While Blom earlier collected and processed geographic information based on specific projects or customer assignments, the company has now built up comprehensive databases that the company owns the rights to itself. This enables multiple sales of the data collected and creates a more scalable business model. In addition, Blom develops solutions, applications and products that make use of the information in the databases and thus ensure greater scalability of the database.

Blom has built up a unique geoserver, BlomURBEX™ for online access, distribution and sales of the companies' products and databases. Access is provided through a programming interface and development tool. Blom is building up a network of partners who create solutions and services for all types of customers and users ranging from professional solutions for engineering, safety, monitoring, etc., to handheld terminals such as smart phones for navigation and gaming consoles.

BLOM FACTS:

1188 employees (as of 31 December 2009)
Head office in Oslo, Norway
Subsidiaries in Norway, Sweden, Denmark, Finland, Germany, UK, Italy, Spain, Portugal, Romania, Ukraine and Bulgaria
Production units in Romania and Indonesia
Operates four helicopters and 24 aircraft
Established in 1954
Listed on Oslo Stock Exchange since 1988
Sales revenue of NOK 737 million in 2009

The company is currently divided into two business areas: Geo Engineering Services and Information Services.

GEO ENGINEERING SERVICES' PRODUCTS AND SERVICES

Photography and laser scanning from aircraft and helicopters form the foundation for the company's products and services within Geo Engineering Services. With aircraft stationed at bases throughout Europe, the company can quickly deploy to any relevant area for photography and scanning. The company's engineers have developed a number of map products and data models based on aerial photography and laser scanning by means of the latest digital technology for photography and laser technology and advanced data modelling. The areas of application for these products include 3D visualisations, volume calculations for the civil engineering and construction industry, growth calculations for forest management, assessment of coastal erosion, flood calculations and planning in connection with the establishment and maintenance of major road networks, railways, pipelines and transmission line routes.

ABOUT BLOM

INFORMATION SERVICES' PRODUCTS AND SERVICES

With BlomURBEX™ being fully operational, the company provides geographic data as a service.

More and more users of geographic information and data models in public administration and private enterprises are now seeing the benefit of avoiding the management and collection of data themselves. Blom provides online access to images, 3D models and other geographically referenced data with a high level of service quality and safety. In addition, it is guaranteed that the most up-to-date images and models with a change history are available to the users.

Information Services is also continuing to develop its solutions for navigation and location-based services aimed at the consumer market. Blom's navigation solutions enable, for example, navigation in high-resolution oblique aerial photos and 3D models, as well as online search services linked to corresponding images and models. The new solutions enable users to get an overview of their surroundings and the local service offerings, for example, by a couple of keystrokes on their mobile phone, or other handheld application.

The market potential for mobile Internet and the use of navigation and location-based services shows strong growth. The moves that Blom has made in recent years make the company well positioned to be a central driving force in this development.

BLOM'S DATABASES

Blom focuses on the development of its own, unique databases. The largest database the company currently possesses is the library of oblique aerial photos, which covers over 1,000 city areas in Europe, totalling more than 4,000 individual cities. Oblique digital aerial cameras enable objects in the images, such as buildings, to be viewed from the side, as well as from directly above. The aerial photos in the database have a very high degree of detail and are updated regularly. In 2009 the company has also created 200 3D models of cities in Europe, Blom3D™, based on, among other, the high-resolution oblique aerial photos. In addition, the company possesses a number of other databases.

AIRCRAFT RESOURCES:

Company's resources in the air include:

16 aircraft owned by the company:
1 Lear Jet 25C
1 CASA 212C
1 Rockwell Commander C690
1 Piper PA 31-350 Chieftain Navajo
5 Piper PA 31-310 Navajo
4 Partenavia P68
2 Cessna P172
1 Cessna 402
8 long-term leased aircraft
4 leased helicopters

SENSOR RESOURCES:

The company's state-of-the-art fully digital cameras and sensors include:

4 UCXp cameras
4 UCD cameras
2 ADS40 cameras
4 ALTM Gemini laser scanners
1 ALTM 3033 laser scanner
1 ALS60 laser scanner
5 Topeye laser scanners
1 Hawkeye laser scanner

VISION AND STRATEGY

VISION

Blom will be a market leader through innovation, technology and competence. Blom helps its customers deliver the best possible services to people where they live, work and travel.

GOAL

Blom shall be an established, recognised international company with a continuous market-oriented focus on innovation and development of the company's assets. Blom will strengthen shareholder value through achieving profitable growth by the development of attractive customer-oriented solutions, based on full exploitation of the company's resources and strong competence.

Growth and increased profitability shall be accomplished through organic growth, expansion in existing and new markets, acquisitions, and structural measures.
Profitability shall be continuously improved through the development and sale of innovative and scalable solutions, as well as continuous efficiency improvement measures.
The group shall be organised at all times so that the synergy potential can be fully exploited for increased productivity and cooperation between the companies.
The business shall be managed in an ethically and socially responsible manner. The company shall have a good reputation with a strong environmental and well-defined profile.

> “Blom shall continuously develop its existing markets and focus at the same time on expansion into new markets.”

STRATEGY

Important measures for achieving our goals are as follow:

Market

Blom shall continuously develop its existing markets and focus at the same time on expansion into new markets. Over 90 per cent of the company's sales revenue and growth is from countries outside Norway, and the company wants to make sure that this trend continues. Nearness and a close dialogue with customers are necessary to ensure growth and customer satisfaction, and Blom seeks continuously to develop its sales and marketing organisation so that it can meet the needs of the customers in an efficient manner.

Blom works actively in markets through alliance partners. Strategic alliance building is essential for development of the markets and continued growth.

Blom wins contracts and market shares through a good reputation by continuously delivering high quality products and services with a high level of precision. The company actively seeks to maintain its strong position. In addition, the company will continue to ensure expansion in existing and new markets through the development of innovative and unique products and services.

Acquisitions and structural changes

Acquisitions and structural changes are a significant part of our growth strategy. The company will continue to work actively to increase growth and shareholder value through structural changes. The goal of acquisitions is to gain access to new markets and new technology and to supplement our range of products. A continuous development of the company's market position is completely key to the execution of structural changes.

Competence and innovation

Knowledge, competence and experience are Blom's most important competitive advantages. A continuous development of these parameters is essential if the company is to meet its growth targets through continuous improvement and innovation. Blom attaches importance to the development of competence by offering its employees attractive and challenging tasks. The company continuously develops its products, services and databases through the competence, experience and innovative capacity of its employees.

Product and technology development

The development of technology and innovation are key to Blom's product strategy, and the company invests around 10 per cent of its sales revenue annually in the development of products, services and databases. This applies to all market segments and product areas. Product development is financed both by the company and customers, and it will always be the needs of the market that determine our priorities and investments. Blom's product development is based primarily on adding value to data that the company collects through aerial photos and laser scanning of terrain and cities. This applies to business areas such as environmental monitoring of the landscape, measurement of growth and CO2 absorption in forests, software solutions for navigation on handheld terminals and PCs, development of three-dimensional (3D) models, and the preparation of searchable, geographically referenced images and maps.

Social responsibility and ethics

The group actively seeks to follow the business ethical guidelines associated with social responsibility and the external environment. These are fundamental elements for the development of a sustainable and profitable business culture where the needs of the employees are also taken into consideration.

Financial strategy

The company attaches importance to solid and profitable growth that provides financial freedom. The financing of growth and structural changes shall be based primarily on the company's earnings and the liberation of capital. The company strives to observe the accounting guidelines in all the countries where it operates, and it is a goal to continuously improve predictability and reduce risk.

LASER SCANNING TO REDUCE CLIMATE CHANGE EFFECTS

BLOM'S TECHNOLOGY USED TO REDUCE CLIMATE CHANGE EFFECTS

In 2009 Blom was appointed to collect laser scanning (LiDAR1) data for producing a new elevation model2 of Sweden by the Swedish National Land Survey. The data collection is estimated to stretch over a period of four years and started in the summer of 2009.

The project is directly linked to climate change effects and initiated by the Swedish Government. The greenhouse effect causes the temperature on the earth to rise and large ice masses to melt. This contributes to higher sea levels and other changes in climate. What will happen with the coastal areas when the sea rises? What will be the effect along rivers and lakes of more frequent and heavier rain or snow fall? Where can we expect erosion and landslides? These and many other questions are becoming more and more important as prophecies of accelerating climate changes are presented.

In June 2005, the Swedish Government appointed the Commission on Climate and Vulnerability to assess impact of global climate change on the Sweden. In 2007, the committee presented the most important issues for the near future. This resulted in directed funding to produce an updated, more accurate elevation model covering all Sweden (450 000 km²). The elevation model can be used for estimating risks and effects of flooding, landslides or other occurrences related to climate change, among other.

To fulfill the needs airborne laser scanning was chosen as the preferred method for collecting the data. Besides providing the best conditions for producing a high quality elevation model it gives additional detailed information about vegetation and objects above ground. As a result it also gives information that can be used for, for example, analyzing inventory of forest and other valuable national resources.

COMPETENCE

Blom has many years of experience in LiDAR and quality assurance and has unique competence within this area. Planning and executing large flight missions with excellent results are crucial in national wide projects.

TECHNOLOGY

One of the key issues in the project is to provide and integrate advanced technologies such as satellite positioning (GPS), inertial navigation and laser scanning. The final result depends on the quality delivered in each of these disciplines. By using the most up-to-date equipment and software combined with unique know-how and experience, Blom are able to deliver the highest obtainable quality and meet any of the customer's requirements.

INNOVATION

Covering Sweden with LiDAR data means that huge data amounts are processed with highest demands of quality. About 400 subareas will result in more than 500 billion LiDAR points. This means that Blom constantly has to develop methods and means to support production and administration of such a large project.

Digital Surface Model (DSM)

1) LiDAR – Light Detection And Ranging, also referred to as airborne laser scanning
2) Elevation model: representation of ground surface topography or terrain, sometimes referred to as terrain model

SEABED MAPPING

SEABED MAPPING – BATHYMETRIC SCANNING

Blom provides bathymetric LiDAR surveys using state-of-the-art technology allowing for delivery of seamless models of the seabed and foreshore, working successfully through the inter-tidal zones and onto the coastal plain. The technique Blom uses provides a fast, cost effective and safe method of surveying shallow hazardous waters, including areas around reefs and islands. LiDAR data is captured with colour photography as standard, which provides detailed imagery supplied with seabed and terrain models.

The data is used in the environmental, coastal engineering and nautical charting market sectors. In particular, EU Legislation such as the Water Framework Directive, Marine Strategy Framework Directive and Floods Directive is driving EU member states strategies and policies for management of their coastlines. Spatial data and detailed survey information relating to the existing infrastructure, marine habitats and profile of the foreshore is critical. Blom's bathymetric data is providing access to this information and allowing clients a detailed understanding of the environment in order to implement their policies.

For the coastal engineering and nautical charting markets Blom allows survey in shallow, hazardous areas for both infrastructure development and the safety of vessel navigation. Blom often offer multiple sensors to allow capture of complimentary datasets which add further value to the client's projects. With an unparalleled reach across European markets, with offices and representatives in each major EU country, Blom has been successful in many projects spawned by EU environmental directives.

Blom's largest survey to date has been the contract award from the French Ministry of Defence body responsible for marine charting. This has been a project located deep in the Southern Indian Ocean, covering nine separate island, atoll and reef areas spread across an area of some 1,500 km. The project has surveyed, in total, more than 3,000 km² of new data. The survey has also included use of a complementary hyperspectral imagery sensor used to provide additional information on coral reef health. It has been one of the largest bathymetric LiDAR surveys awarded to date and information from Blom will be used for modelling the fragile environment and ecosystems over the years to come.

Moreover, Blom have also completed an over 1,000 km² survey for the US Army Corps of Engineers as part of their coastal mapping programme. The survey has taken place along the Gulf of Mexico coast for assessment of coastal morphology and storm surge defence structures. Results from the survey will go to help defend numerous settlements against forthcoming storms. This will help minimise the impact of future events like Hurricane Katrina which hit the region in August 2005. Bathymetric laser scanning:

COMPETENCE

Blom have been using HawkEye Bathymetric LiDAR since 1994 and have pioneered the technology in various markets across the globe.

Blom is the first company to achieve full commercial operation of the Hawk Eye sensor and have surveyed over 8,000 km² to date with a forward work load of a further 2,000 km² already secured for 2010.

High quality and delivery to programme is assured with many of the larger projects being completed for repeat customers and under long-term framework agreements with national organisations.

TECHNOLOGY

Blom has integrated the HawkEye II LiDAR with other sensors to provide very rich datasets from a single survey mission. This allows many personnel working on different aspects of a project to share information across the team; delivering greater value to our clients.

INNOVATION

Blom has worked with the Hawk Eye instrument manufacturer to secure key developments to the bathymetric LiDAR sensor. This has allowed new products and services to be offered reacting to both customer requests and the requirements of the market. Resources from across the Blom Group are working together to deliver the HawkEye projects. We coordinate the best use of aircraft, other sensors and personnel to efficiently deliver the highest quality service.

MARKETS

INTRODUCTION

As one of Europe's largest providers of geospatial products, services and solutions, Blom's customers range from public administrations and enterprises to consumers. The company provides a wide variety of mapping and geographic services, meeting local, regional and international standards and specifications, as well as custom solutions for specific customer demand. Blom's strength lies in the expertise, innovative capability and the technical know-how of its people.

The company operates two business units; Geo Engineering Services and Information Services.

GEO ENGINEERING SERVICES

Geo Engineering Services cover a range of capabilities based on aerial photography and laser scanning. Blom's engineers and subject experts produce a wide range of geo spatial models for engineering and earth monitoring purposes. The aim is to support customers in handling the continuous change, planning and development of urban and rural areas as well as coastal zones. Blom focus the Geo Engineering Services into the following primary market segments: public services, urban & rural planning, corridor infrastructure engineering, environment & forestry, sea maps, defense, and telecom.

Public Services and Urban & Rural Planning

Blom provides high quality engineering, consultancy services and contracted mapping and modeling services for land and property administration. Examples of services are preparation of high quality maps and three-dimensional models, cadastral maps and real estate property databases. Cadastral mapping provides the basis for efficient real estate management and is a fundamental requirement for economic development and growth. The services have been provided to projects in over 30 countries in Europe, Central Asia, Latin America, the Caribbean, Africa and the Far East. In addition, Blom has extensive experience in carrying out projects financed by different Development Funds, of which the primary objective is poverty alleviation in developing countries. Blom has an extensive track record with projects funded through various means, such as the World Bank, EU, Asian Development Bank, African Development Bank etc, and a large number of national aid and donor organizations.

Corridor Infrastructure Engineering

Effective urban community management is reliant upon accurate data from a variety of sources and the ability to represent and analyse this data through scalable and high resolution mapping. Blom's libraries of oblique aerial images, orthophotos and 3D city models help support vital strategic decisions in services planning, cost, and organization of customized services. Blom provide products to help services such as street cleaning, waste collection, mobility, transport and building and infrastructure taxation to be managed efficiently. Moreover, Blom offers a range of remote aerial survey sensor techniques for corridor mapping supporting monitoring and maintenance of critical infrastructure such as gas pipelines, power transmission, railroads, highways and airports. These techniques include use of helicopter for laser scanning and aerial photography providing very high level of accuracy and detail.

Blom possesses the expertise, innovative capability and the technical know-how to manage any market needs

Environment & Forestry

Blom's remote sensing and modeling capabilities is used to monitor and analyze growth patterns on vegetation and the impact environmental changes such as flooding and soil erosion have on the landscape. This is for example used to manage the environment and the growth in forestry and agriculture. Blom generates information databases compiled from combinations of aerial photography, hyper spectral scanning and bathymetric laser scanning to provide data on, among other, land and offshore terrain, land coverage, snow volumes and vegetation. Flood modeling systems and forestry management tools are examples of high value services using Blom's geo models and information databases. Environmental

MARKETS

agencies and private companies such as forestry developers integrate Blom information database as a service to their decisions support applications.

“Blom’s mapping and remote sensing capabilities can play a major part in assessing environmental impact of new development and other environmental issues”

Sea maps

Blom operates one Hawkeye bathymetric and topographic laser scanner for remote sensing of areas with water, such as coastal areas, lakes and rivers. The technology is capable of collecting both seabed and land data simultaneously, improving consistent data capture and accuracy along the shore. In combination with a digital co-axial camera, it is an excellent service for survey, mapping, charting and environmental assessment of shallow waters and the coastal zone. The Hawkeye sensor combined with Blom's modeling capabilities generate richer and higher quality information than models with traditional capturing techniques. Blom is a world leader in coastal modeling for environmental studies.

Defense

Defense organizations are major users of digital maps and are as such an important market segment for Blom. Blom provide large mapping and modeling services to several NATO countries. Security can be a major concern in densely populated areas which experience high levels of mobility amongst residents. Factors such as knowledge of the local area, representation of sensitive information, events management and the co-ordination of regional service operators are each fundamentally important to the management of community security. Blom's libraries with geographic data, now available to many mobile devices, enable the implementation of strategic dashboards to support mission planning, monitoring of dynamics and the co-ordination of territory monitoring. Any such monitoring can be performed both day and night and for subjects both static and mobile. Blom's libraries encompass complete countries and cover vast urban areas, incorporating orthophotos, and vertical and oblique perspectives, and a wide range of resolution options between 2 cm and 50 cm.

Telecom

Mobile phone communication requires network infrastructure investments that are critical to successful roll-out and optimization. To make geographic analyses for planning, maintenance and optimization of radio networks Blom offer digital surface model (DSM) databases. The models are created using laser scanning or aerial photography and necessary post-processing. Blom DSM databases cover several European countries, and paired with the Blom high resolution imagery dataset it is a suitable tool for the simulation and planning of antenna positioning for wireless telecommunications.

“Blom has extensive experience in carrying out projects financed by different Development Funds, of which the primary objective is poverty alleviation in developing countries”

Forestry assessment

MARKETS

INFORMATION SERVICES

Information Services serves Blom's oblique imagery and models, and their derived products. Blom has created a unique server solution BlomURBEX™, which is a high performance database solution for online distribution of Blom's data model and image products.

As Blom see that customers increasingly want access to data and data models as an online service BlomURBEX™ is a key capability for growth. BlomURBEX™ has a set of tools for making all content available on different solution platforms and applications. These tools support reliable, quick and easy integration with customers' end user applications enabling access to the vast amount of data and data models in BlomURBEX™.

The tools support high performance high reliability applications for the professional government and enterprise market as well as the high volume consumer navigation and location based services market. The integration tools, such as plug-ins, development toolkits and programming interfaces, are available for all software developers and system integrators.

Information Services is focusing on six main markets; navigation, location based services, geo search and online portals, emergency & security, real estate, and land & property administration.

> “The navigation solution makes use of Blom’s databases and enables navigation by means of detailed, real oblique images and 3D city models”

Navigation

Blom has set a new industry standard with its unique images, data models and software for handheld navigation, both offline/ on board and online/off board, solutions. The navigation solutions makes use of Blom's databases and enable navigation by means of detailed, oblique aerial images and 3D city models. For navigation, traditional vector maps are useful to provide schematic information. Images and 3D models are the perfect complement to provide additional information regarding the area the user is located. With images and 3D models users can easily and rapidly identify the surrounding area, and identify landmarks and locations before actually being there.

Location Based Services (LBS)

The telecom industry with the tremendous growth of smart phones with GPS capabilities is increasingly focusing on Location Based Services (LBS). Blom's platform for LBS enables users to access the data in BlomURBEX™ online to

NDrive navigator with Blom's oblique aerial images included.

any device and stream or download the data and images that are relevant to the location of the user. For example, the user can download lists of nearby bus stops, hotels, post offices or parking facilities. Other detailed information can be provided, for example, how many hotel rooms or parking spaces are available in the users nearby location at that exact time.

Geo Search and Online Portals

Blom offers its unique database content for usage in geo search services, online maps and directory services in general. Blom's images and 3D models enable service providers to provide the end user and consumer much better real-life experience online. We have seen traffic and "clicks" on a web site increase when the site provides users with real high quality images and models.

Emergency & Security Services

Blom's Oblique imagery already plays a crucial part in helping operators at emergency call centers such as 112, navigate and support their work in critical situations. Blom's oblique imagery is integrated into the emergency dispatch application and instantly and automatically provide visual and measurement information on the location from where an emergency call comes from. This help the emergency dispatcher to better assess the situation and direct emergency vehicles and rescue workers.

For example, oblique imagery can immediately identify how wide a road is to give access for emergency vehicles, how large a ladder should be to reach the top of a building, how maneuverable alternative access routes are to a specific location, etc. Perhaps even more important is the fact oblique imagery provides the opportunity to view an emergency location in daylight hours, while the actual emergency might occur at night. In addition, images allow emergency services to identify high voltage cables, or any other potentially dangerous elements at any location. This information is vital to any efficient and safe emergency unit. Blom is increasingly making efforts for supporting all the European 112 Emergency Services, and has already signed agreements with the Fire department in Brussels, Belgium and Carabinieri in Italy.

MARKETS

Blom is member of the board of the 112 European Emergency Number Associations (www.EENA.org). EENA is an association developed to promote the knowledge and usage of the 112 emergency numbers across Europe.

Real Estate

Real estate companies need to present properties in the best possible light to potential customers and partners. Blom offers a unique way to showcase the attributes of the properties offered. In addition to providing high resolution- oblique images and 3D models of each property or location, Blom provides tools which allows users to measure building heights, surface areas or distances to the nearest park, train station or school etc. The value of Blom's imagery for players in the real estate sector can be substantial as it gives more information about a property and its' surroundings compared to other data libraries available today.

Land & Property Administration

Urban planning and public works carried out by government agencies, utilities companies and engineering and construction companies have now become key industries to take advantage of Blom's oblique imagery database. The imagery allows the users to operate more efficiently, and the geo referenced data helps achieve a greater level of accuracy. Blom's database of oblique imagery covers 80 percent of the European population, and is updated every two to three years. As a result, urban planners, for example Government Agencies, are able to achieve accurate visual information on an area and relate this to the impact of public works.

Utilities companies strive for more efficiency when planning their urban network development or maintenance by using as detailed information as possible. Including Blom's oblique images as part of the planning provides invaluable information which would otherwise be impossible to obtain without actually having to physically be at the location.

> Blom is increasingly making efforts for supporting all the European 112 Emergency Services, and has already signed agreements with the Fire department in Brussels, Belgium and the Carabinieri in Italy

Other Markets

3D social platforms where the users try to recreate a virtual reality for meeting people with avatar images, is an example of what internet users are demanding today; a virtual environment where users can talk and socialize with people in a specific place or city. Interactive tourist guides, where the user, among other, can travel virtually to a destination and see if the location is what they expect, or find distances between interesting monuments, hotels etc, are becoming more and more expected by modern tourist information guides, such as the online Travel Guide from the Repsol Petrol Company. Blom provides the information for developing these real experiences, offering unique aerial images and 3D models covering cities throughout Europe, allowing users to easily zoom to a level of detail that has not been previously available in such a scale. Users can now see detailed characteristics in building facades, fences and other features on the ground.

FINANCIAL ANALYSIS | 19

OVERVIEW AND SUMMARY

CHALLENGING YEAR WITH A GOOD FOUNDATION FOR GROWTH

2009 was a challenging year for Blom. The Geo Engineering Services segment experienced a lower level of activity and requests for tenders throughout most of 2009. The company has, however, maintained – and in some markets increased – its market share. Information Services has to a great extent been impacted by the general decline in the European economy. The company's partners have postponed the launch of products and experienced in general lower sales for their products. The first half of 2009 was particularly challenging, but the demand for Blom's products and services improved significantly in the second half of 2009. At the end of the year the company had a larger order backlog than at the start of the year.

Irregularities were identified in connection with the final audit of the group's operations in Spain, and they have affected the company's recognition of revenue in 2008 and 2009. The adjustments made in the consolidated accounts related to Spain at the EBITDA level total NOK 45 million for the 2008 accounting year and NOK 29 million for the 2009 accounting year.

The group's sales revenue for 2009 totaled NOK 737 million, compared with NOK 822 million in 2008. EBITDA totaled NOK 92 million with a margin of 12.5 per cent for 2009, compared with an EBITDA of NOK 109 million and a margin of 13.3 per cent for 2008. The group's operating result, measured as EBIT, was a loss of NOK 54 million in 2009, compared with a profit of NOK 28 million in 2008. This includes a goodwill write-down of NOK 44 million in Spain and NOK 6 million in provisions for future depreciation on intangible assets in Spain. The net loss for the year was NOK 83 million, compared with a profit of NOK 13 million for 2008, which corresponds to an earnings per share of NOK -2.04 for 2009 and NOK 0.33 for 2008.

Sales revenue in Geo Engineering Services was maintained at NOK 618 million in 2009, compared with NOK 610 million in 2008. The Information Services segment experienced a very challenging year and was greatly affected by the financial turbulence in the European economy. Sales revenue declined from NOK 211 million in 2008 to NOK 119 million in 2009.

MARKET

In recent years Blom has made several important strategic moves in light of the rapidly growing market in geographic information. While Blom earlier collected and produced geographic information and models based on specific customer assignments, during the last three to four years the company has built up very comprehensive databases that the company owns the rights to itself. This step has enabled online access and multiple sales of data, images and models. In addition, Blom has developed applications and services that make use of the information in the databases and thus ensure greater scalability. Blom has great expectations for growth in online services.

In Geo Engineering Services Blom has experienced substantial growth in LiDAR (laser scanning). The company has, for

SALES TURNOVER 2008–2009:

(Amounts in NOK 1000)

EBITDA 2008–2009:

(Amounts in NOK 1000)

2008 adjusted for irregularities with documentation in recognition of income at Blom Sistemas Geoespaciales.

FINANCIAL ANALYSIS

example, won a number of large projects in the environmental sector that involve forest monitoring, flood control and risk surveys, in addition to soil erosion monitoring. Of particular importance in 2009 was the contract awarded to create a nationwide elevation model for Sweden. Geo Engineering Services has shown a stable development and received approval for several new applications and technical solutions that we expect to form a foundation for future growth.

Blom's largest markets by revenue are the Nordic region, Spain, the UK and Italy, cf. Note 1.

KEY ACCOUNTING PRINCIPLES

The consolidated accounts have been prepared in accordance with the International Financial Reporting Standard (IFRS). These consolidated accounts have been prepared on the basis of historical cost, with the exception of financial instruments that are assessed at market value. The preparation of accounts in accordance with IFRS requires the use of estimates. In addition, the application of the company's accounting principles requires that the management exercise judgement.

Estimates and discretionary assessments are assessed continuously and based on historical experience and other factors, including expectations of future events that are regarded as probable under the current circumstances. The group prepares estimates and makes assumptions concerning the future. The most important evaluations for Blom ASA are related to goodwill, calculation of the deferred tax assets, recognition of income from projects, and provisions for receivables.

KEY CHANGES THROUGHOUT THE YEAR

In 2009 and so far in 2010, Blom has entered into and renewed strategically important partnership agreements that provide a good foundation for future growth in the medium to long term. These partnership agreements complement Blom's product and service portfolio at the same time as they give us more sales power.

In 2009 Blom CGR, Blom's Italian subsidiary, established a partner company, Telaer STA, together with two subsidiaries in the Finmeccanica Group, e-Geos and Galileo Avionica, for the delivery of products and services in the area of airborne and satellite-based information to the Italian Ministry of the Environment (AGEA). Blom is assured of substantial long-term assignments through Telaer.

Blom and Infoterra (a wholly owned subsidiary of the EADS Group) signed a partnership agreement in December 2009 for the purpose of establishing a unique, high-quality European geographic database. The primary aim of the database is to service customers who require reliable, homogenous and independent access to high-quality geographic information services. By combining Infoterra's satellite images with Blom's extensive library of aerial photos and 3D city models, the agreement opens up the possibility of establishing a uniform,

global data set with unique coverage, as well as a professional quality and level of detail.

In March 2010 Blom renewed and extended its existing agreement with Microsoft until 2014. The agreement entitles Microsoft to continue use of Blom's database of oblique images based on Pictometry® technology. This database is the most extensive library of oblique images in the world and covers more than 1,000 city areas, including over 4,000 independent cities, in Europe.

In June 2009 Blom was awarded a major contract by the Swedish Lantmäteriverket (National Mapping, Cadastral and Land Registration Authority) to create an elevation model for all of Sweden. The award of this contract shows that Blom is a very competitive and quality conscious and that the company continues to win major nationwide assignments. Over the last 3 years, Blom has created nationwide models of a number of European counties, and we expect that this trend will continue.

Blom has maintained a strong focus on navigation and online services. The company has enhanced its geo server, Blom-URBEX™, for online distribution and access to Blom's databases, developed additional 3D models for navigation, built up a professional sales and marketing organisation, and expanded its oblique image database in Europe.

SALES REVENUE

The group's sales revenue was NOK 737 million in 2009, compared with NOK 822 million in 2008. Operating revenue in BGES was at the same level as 2008 in 2009, while operating revenue in BIS showed a significant decline due to the challenging market conditions. Blom did not complete any acquisitions in 2009 that would affect the operating revenues.

FINANCIAL EXPENSES

The net financial expenses totalled NOK 40 million in 2009, compared with NOK 10 million in 2008, which is attributed primarily to higher interest-bearing debt and foreign exchange losses.

TAXES

The deferred tax assets are recorded on the balance sheet based on the expected future earnings. The tax loss carryforward represents most of the deferred tax assets. The company has recognised the tax effect of the tax loss carryforward of NOK 173 million on the balance sheet and NOK 57 million of this amount is not time limited.

INTANGIBLE ASSETS

Goodwill is the difference between the acquisition cost for the acquisition of a business and the fair value of the net identifiable assets in the business at the time of the acquisition. Goodwill from the acquisition of subsidiaries is treated as an intangible fixed asset. Goodwill is tested annually for impairment in value, and it is recorded at historical cost less accumulated write-downs and amortisation.

FINANCIAL ANALYSIS | 21

Due to mutual cash flow dependency between the company's legal entities within its two segments, the company is regarded as two cash flow generating units, and goodwill in the company is allocated to these two cash flow generating units. The recoverable amount from the cash flow generating unit is calculated based on the value determined for the asset by calculating the utility value. These calculations require the use of estimates. The testing of goodwill is described in Notes 3 and 24.

Patents and licenses are recorded at historical cost. Patents and licences have a limited economic life and are recorded at historical cost less accumulated depreciation. Patents and licences are depreciated by the straight-line method over their expected life (3-10 years).

SEGMENT INFORMATION

As a result of the introduction of IFRS 8 on 1 January 2009, the company will report two operating segments from this accounting year, Geo Engineering Services and Information Services, which are two separate cash-generating units.

PROVISIONS FOR RECEIVABLES

The provisions for potential losses on receivables are based on the management's discretionary assessment of potential future losses on receivables from customers. The company's customers in BGES are primarily municipalities or government agencies, or companies or institutions where municipalities or government agencies have a dominant influence. The company considers the risk of potential future losses from this type of customer to be low.

During the last two years in BIS the company has acquired more customers who are private companies in handheld terminals, web services and navigation. These customers have by definition a higher probability for potential future losses than the company's original customer group. As at 31 December 2009 the company has provisions of NOK 19 million for potential future losses on specific receivables from customers. These provisions have in general been earmarked for specific private customers exposed to competition who have acquired services from Blom's existing database of oblique images. The company has earmarked provisions for specific customers and evaluated the size of the potential loss.

FOREIGN CURRENCY AND INTEREST RATE CONDITIONS

The company is somewhat exposed to fluctuations in foreign exchange rates, since substantial revenues are in foreign currencies other than NOK, primarily EUR. The company has relatively large operative subsidiaries in nine European countries, four of which use the Euro as their functional currency, while the five remaining subsidiaries use five other functional currencies.

The company has certain investments in foreign subsidiaries, whose net assets are exposed to foreign currency translation risk. Currency exposure arising from the group's net investments in foreign operations is managed essentially though raising loans in the relevant foreign currency.

The company focuses on reducing any foreign currency risk associated with cash flows and does not focus on reducing the foreign currency risk associated with assets and liabilities. The subsidiaries' income and expenses are in the same currency, and this reduces the group's cash flow exposure to a single currency substantially. An assessment of the need for and any hedging of currency risks are performed by a central financial function. In 2009 the company did not find it necessary to hedge cash flows against currency risks through forward contracts.

The company is also exposed to fluctuations in the interest rates for the company's interest-bearing debt and cash reserves. The group's interest rate risk is associated with long-term loans, financial leasing and overdraft facilities. All of the company's interest-bearing debt is subject to adjustable interest rates. The company has not made use of interest rate swaps or other financial instruments.

LIQUIDITY AND CAPITAL STRUCTURE

The company considers its liquidity to be satisfactory.

The group had NOK 241 million in liquid reserves at the end of the year, compared with NOK 243 million in liquid reserves at the start of 2009. The available liquid reserves as at 31 December 2009 consist of bank deposits of NOK 165 million and an unutilized overdraft facility and other unutilized drawing rights of NOK 76 million. The liquidity is monitored monthly by means of rolling cash flow forecasts from the subsidiaries, which are also used as a basis for the placement of excess liquidity.

The group has credit facilities and/or short-term loans in Blom ASA, Blom CGR, Blom Sistemas and Blom Romania. The group also utilizes lease financing. The company issued a new bond loan of NOK 300 million on the Norwegian market in September 2009. The net proceeds from the bond loan were used in part to redeem an existing bank loan.

The composition of long-term liabilities and short-term interest bearing liabilities is described in Note 8.

EQUITY

Blom has an equity ratio of 49 per cent as at 31 December 2009, compared with 55 per cent in 2008.

BOARD OF DIRECTOR'S REPORT

BOARD OF DIRECTOR'S REPORT | 23

BOARD OF DIRECTOR'S REPORT

COMPANY'S OPERATIONS

In its report for 2008, the Board of Directors expressed that the company had conservative expectations for 2009 and that they expected 2009 to be a generally challenging year for many enterprises. In spite of this, and in conjunction with a good point of departure at the start of the year, the Board of Directors is not satisfied with the results reported by the company for the year 2009. The company has not managed to maintain the good growth rate that the company has shown in recent years, and has carried out several actions to rebuild the growth the company's total resources represent.

The company's operations are divided into two business areas. One of these areas is Blom Information Services (BIS), which is characterised by the company establishing a customer relationship in which the same data can be delivered to multiple customers. The delivery takes place through services and applications that are provided through wireless access or over the Internet/online. The second business area is Blom Geo Engineering Services (BGES), which represents primarily services linked to non-recurring deliveries, the terms of which are agreed on for each individual customer and each individual delivery.

BGES is based on the traditional activities that the company was built on historically, and the customer base is linked primarily to public enterprises or customers who deliver services that focus on the development and management of infrastructure and land areas. While photogrammetry and the production of maps was the main pillar for such services four-five years ago, now the company has increased its focus on various forms of laser scanning as part of its goal to improve the profit margin. Today Blom has a leading position in Europe with regard to the laser scanning of routes and large or small areas of land, as well as the sea.

This shift in the product mix has increased the company's margin within this business area significantly. The company won major contracts that confirm the company's strong position in this area. Blom envisions clear growth areas for the use of such technology, and the company emerges as an attractive partner based on the company's structure and available capacity. In 2009 the company entered into exciting agreements with companies that deliver satellite-based geographically referenced data, such as EADS and Finmeccanica, where cooperation involving the use of airborne data and access to our databases provides exciting opportunities.

The foundation for BIS is the company's long-term strategy to establish a unique European database of oblique images that cover more than 1,000 urban areas, with 4,000 independent cities, in Europe. With its own databases Blom will be able to sell the same data multiple times and thus be able to deliver stronger margins. In order to achieve optimal distribution of such data, the company has developed its own geo server that can give customers access to the database through a number of proprietary interfaces and the associated development tools. As a result of these investments Blom can also offer its customers access to other databases linked to its own geo server. In addition, Blom will be able to establish new sales channels and benefit from the market access of other companies through partner agreements.

During this past year Microsoft has extended its agreement with Microsoft for use of Blom's database in BingMaps. At the same time, the company has entered into a new partnership agreement with Infoterra (a wholly-owned subsidiary in the EADS Group) with the aim of strengthening the distribution and sales of Blom's unique database. Blom and Infoterra will primarily serve customers who require reliable, homogenous and independent access to high-quality geographic information services. With the ability over time to combine Infoterra's satellite images with Blom's extensive library of aerial photos and 3D city models, the agreement opens up the possibility of establishing a uniform, global data set with unique coverage, as well as a professional quality and level of detail. The parties will build on Infoterra's expertise in value-added services for geographic information and fully exploit Blom's geo server, BlomURBEX™, in order to offer a number of user friendly, market-oriented services and applications for professional users. The company sees that it will achieve market penetration through Infoterra that it would have taken several years to establish otherwise.

Blom has developed sophisticated 3D models through the agreement with Tele Atlas /TomTom, and the company expects that these models will result in good earnings over time. The 3D models will represent an integral part of the Tele Atlas products in the future. 3D models will be the map solution of the future. In addition to representing a great deal of expertise in this field, the company also has the largest database of such models in Europe.

Blom has independent operations in a total of 12 countries in Europe and a production unit in Indonesia. The parent company has offices at Skøyen in Oslo and manages the operations from there.

COMMENTS ON THE ANNUAL ACCOUNTS

The Board of Directors believes that the annual accounts provide a true picture of the group's results and position. Sales revenue declined by 10 per cent (compared to adjusted 2008 accounts). EBITDA margin for 2009 was 12.5 per cent, compared with 13.3 per cent in 2008. This reduction is attributed primarily to the Geo Engineering Services segment.

The company has a satisfying balance sheet with an equity ratio of 49.3 per cent, cash reserves of NOK 165 million and net interest-bearing debt of NOK 304 million, which represents our financial foundation for future growth.

RESULTS

The group's sales revenue was NOK 737 million in 2009, compared with NOK 822 million in 2008. EBITDA totalled NOK 92 million with a margin of 12.5 per cent for 2009, compared with an EBITDA of NOK 109 million and a margin of 13.3 per cent for 2008. The group's operating profit, measured as EBIT, totalled NOK -54 million in 2009, compared with NOK 28 million for 2008. This includes a goodwill write-down of NOK 44 million in

BOARD OF DIRECTOR'S REPORT

Spain and NOK 6 million in provisions for future further depreciation on intangible assets in Spain.

The adjustments made in the consolidated accounts related to Spain at the EBITDA level total NOK 45 million for the 2008 accounting year and NOK 29 million for the 2009 accounting year.

The margins have weakened due to the adjustments made after accounting irregularities were identified in one of our subsidiaries during finalisation of the accounts in February 2010. The Board of Directors has launched an external investigation, and the known impact on the accounts as a result of this has otherwise been taken into account in the reported financial statements.

Net cash flow from operations was positive NOK 73 million, which is attributed primarily to a reduction in stocks and work in progress. Cash flow from financing was positive NOK 92 million, which reflects primarily the refinancing of the group through raising a bond loan of NOK 300 million.

INVESTMENTS

Depreciation has increased due to the company's investments in databases and development related to BlomURBEX™ and other advanced technology during the last year. The combined operational investments in 2009 totalled NOK 101 million, compared with NOK 113 million in 2008.

FINANCING

The company issued a new three-year bond loan of NOK 300 million on the Norwegian market in 2009. The net proceeds were used to refinance an existing bank loan and will also be used to finance the company's general operations. The Board of Directors is satisfied that the company has secured long-term financing in spite of higher financial expenses. The company did not issue any new shares in 2009.

Total assets at the end of the year were NOK 1,414 million, compared with NOK 1,542 million in the previous year. The equity ratio was 49.3 per cent as at 31 December 2009, compared with 55.4 per cent as at 31 December 2008. The Board of Directors is satisfied with the company's financial position.

CONTINUATION AS A GOING CONCERN

Pursuant to Section 3-3 of the Norwegian Accounting Act, it is confirmed that the prerequisites for continued operations have been met. This assumption has been made for the preparation of the accounts, forecasted results for the year 2010 and the group's long-term strategic forecast for the coming years. The group has a good economic and financial position to support continued operations.

COMMENTS ON THE BUSINESS OUTLOOK

Blom has experienced market-related challenges that have resulted in lower revenues and margins than budgeted for the year 2009. This may also mark the first quarter of 2010, but it is not expected to influence the long-term creation of value that takes place through the company's operative activities. Blom expects higher sales revenue and a better operating margin in 2010 than in 2009. The Board of Directors point out that uncertainty is normally associated with forward-looking statements.

The company will focus on its two core areas in 2010 as well:

Geo Engineering is showing growth, and there is still good demand for the company's services in 2010. The company has employees who are very capable, innovative and willing to adapt, who help develop our range of products and contribute to Blom differentiating itself from its competitors in the market.
Information Services is continuing with a high rate of innovation and, even though the consumer electronic markets showed a decline in 2009, the company has seen signs of improvement in the market in 2010. Blom has established strategic cooperation with key market players that will give the company greater market access and promote growth in 2010 compared with 2009.

ENVIRONMENT AND EQUALITY

Working environment

Blom has gained substantial expertise in recent years through the acquisition of businesses and recruitment of personnel, which will form the foundation for the future development of the company. As at 31 December 2009 there were a total of 599 employees in the operative companies, while there was a total of 589 employees at the production facilities in Indonesia and Eastern Europe. There were a total of 1,188 employees at the end of the year, compared with 1,232 employees in 2008.

In 2009 the sick leave rate was 1.8 per cent in Norway, compared with 2.4 per cent in 2008, and no workplace injuries were reported in 2009. It is the Board of Directors' opinion that the working environment, general level of workplace satisfaction, and loyalty to the company are satisfactory. Blom continuously seeks to improve the working environment. This is followed up locally in the individual subsidiaries.

Equal status

The percentage of women in the operations in Norway is 22 per cent, compared with 18 per cent in 2008, and two of the group's five elected board members are women. The employees are represented on the Board of Directors of the operative company in Norway. There are no employee-elected representatives on the Board of Directors who are women.

Blom's personnel policy is deemed to be gender neutral in all areas and equal status issues are safeguarded in a satisfactory manner. We are in a male-dominated industry, and this is reflected in the company's gender composition. The Board of Directors will continue its efforts to ensure that the company satisfies the equal status requirements at any given time.

External environment

The group owns 16 aircraft and operates 24 aircraft and four helicopters for the collection of data, and this does have some impact on the environment. The nature of the other operations in the group is such that they only pollute the external environment to a very limited extent, and the company operates in compliance with the applicable laws and rules.

BOARD OF DIREACTOR'S REPORT | 25

RISK FACTORS

Operational risk

Blom has completed a number of acquisitions in the last couple of years, and there will be risk associated with the integration of companies. Blom has certain products and solutions that have a limited operational history and have thus not been implemented fully. There will be a risk that something does not go as planned when adequate experience data is not present, as opposed to many years of experience.

Foreign currency and interest rate risk

The company is somewhat exposed to fluctuations in foreign exchange rates, since a significant portion of the revenues are in foreign currencies, primarily EUR, USD and GBP. The foreign currency risk is not regarded as substantial, since the revenues and expenses are normally in the same currency and the revenues are distributed across several foreign currencies. The company is also somewhat exposed to fluctuations in interest rates, since most of the company's debt has adjustable interest rates.

Credit risk

The risk that the company's debtors do not have the financial capacity to fulfil their obligations is regarded as low, since the customer base consists primarily of municipalities or government agencies, or companies or institutions where municipalities or government agencies have a dominant influence. Historically there have been very few losses on receivables in this customer group. The company has found it proper, nevertheless, to set aside provisions totalling NOK 19 million for possible future losses on receivables from customers in 2009, which is related primarily to specific private customers exposed to competition. The company has a strong focus on measures to increase cash flow and reduce working capital. Stocks, work in progress and receivables from customers declined 15 per cent from 2008 to 2009.

Liquidity risk

The Board of Directors of Blom considers the company's liquidity to be good. The liquidity management is based on a cash management system for the entire group, in addition to 12-month rolling liquidity forecasts.

Oslo, 24 March 2010

Gunnar Hirsti
Board Chairman

The group successfully issued a bond loan with a nominal value of NOK 300 million on 25 September 2009. The loan matures on 25 September 2012. The covenants attached to the bond loan include maximum net interest-bearing liabilities/EBITDA of 3.5 x and a minimum equity ratio of 40 per cent. Net interest-bearing liabilities/EBITDA was 3.3 and the equity ratio was 49 per cent at the end of the year, and they were thus in compliance with the loan covenants.

APPLICATION OF THE PROFIT FOR THE PARENT COMPANY

The Board of Directors proposes the following application of the profit:

Proposed dividend	NOK	0
To other reserves	NOK	76,884,000

The company's distributable equity is NOK 544.7 million.

EVENTS IN 2010

With the exception of the events in Spain related to the accounting irregularities, no events have taken place after the date of the balance sheet that are of significance to the annual accounts.

FUTURE OUTLOOK

The company has put a year of major challenges and serious individual events behind it now. The company has followed the long-term strategy that was established for both business areas, and continued to build on the platform that has been established for the future creation of value. In addition, the company has established a new corporate structure with a greater focus on control functions and sales in 2009. Blom will continue to have moderate growth expectations for the demand for the company's services, but a clear trend is seen towards preparation for increased use of the company's expertise. The Board of Directors has, therefore, a legitimate hope that both sales revenue and earnings will be better in 2010 than in the previous year.

The company will continue to focus on measures to improve its margin, through both cost adaptation and more efficient use of the company's resources. The company will also continue to make a focused effort to reduce the amount of capital tied up in working capital. This will liberate capital that can strengthen the balance sheet and ensure future growth.

Berta Eilertsen
Board Member

Bente Loe
Board Member

BLOM GROUP ACCOUNTS

BLOM GROUP ACCOUNTS | 27

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME – BLOM GROUP

(Amounts in NOK 1000)

	Note	2009	Adjusted 2008
Operating revenues	1	736 901	821 684
Cost of materials		242 461	309 745
Salaries and personnel costs	12	297 554	273 925
Depreciation and amortisation	2/3	146 138	81 340
Other operating and administrative costs		104 580	128 706
Operating expenses		790 733	793 716
Operating profit/loss		-53 832	27 968
Profit/loss attributable from associated companies	22	-565	0
Net financial items	13	-39 562	-10 200
Pre-tax profit/loss before taxes		-93 960	17 768
Taxes	9	10 949	-4 466
Net profit/loss for the year		-83 012	13 302
Profit attributable to
Shareholders		-82 437	13 935
Minority interests		-575	-633
Net profit/loss for the year		-83 012	13 302
Total comprehensive income
Currency translation difference	21	-74 757	67 341
Total comprehensive income for the year		-157 769	80 643
Comprehensive income attributable to
Shareholders		-156 688	81 472
Minority interests		-1 081	-829
Total comprehensive income for the year		-157 769	80 643
Earnings per share/diluted earnings per share	17	-2,04	0,33

Note 1 to 26 is an integrated part of the Blom Group Accounts.

BLOM GROUP ACCOUNTS

BALANCE SHEET – BLOM GROUP

ASSETS

(Amounts in NOK 1000)

	Note	2009	Adjusted 2008
Patents, licences and similar rights	3	36 700	56 959
Deferred tax assets	9	50 428	39 549
Goodwill	3	270 579	367 496
Total intangible fixed assets		357 707	464 004
Tangible fixed assets	2	295 797	315 848
Long-term fixed asset investments	20	10 253	11 877
Investments in associated companies	22	45 246	45 811
Total fixed asset investments		55 498	57 688
Total long-term assets		709 003	837 540
Stocks	4	2 826	4 352
Work in progress	4	261 237	234 705
Total stocks		264 062	239 057
Receivables from customers	5	240 252	353 019
Other current receivables	5	35 404	36 319
Total receivables		275 656	389 338
Cash and cash equivalents	6	164 873	76 482
Total current assets		704 592	704 878
TOTAL ASSETS		1 413 595	1 542 418

BLOM GROUP ACCOUNTS | 29

BALANCE SHEET – BLOM GROUP

EQUITY AND LIABILITIES

(Amounts in NOK 1000)

	Note	2009	Adjusted 2008

Paid in share capital
Nominal share capital	16	4 170	4 170
Treasury shares	16	-110	-110
Share premium account		129 581	129 581
Other reserves
Currency translation differences		-18 424	54 694
Retained earnings		580 924	664 491
		696 141	852 826
Minority interests		1 389	2 470
Total equity		697 530	855 296
Pension obligations	7	20 625	22 878
Long-term liabilities	8/14	356 366	232 620
Deferred taxes	9	12 351	13 466
Total long-term liabilities		389 342	268 964
Overdraft facilities	8	89 824	75 101
Other interest-bearing short-term liabilities	8/14	31 031	87 470
Total interest bearing short-term liabilities		120 855	162 572
Payables to suppliers		104 798	80 579
Unpaid government taxes		35 289	39 429
Tax payable	9	8 197	1 796
Other current liabilities	10	57 583	133 782
Total other current liabilities		205 868	255 586

Total current liabilities		326 723	418 158

TOTAL EQUITY AND LIABILITIES		1 413 595	1 542 418

Note 1 to 26 is an integrated part of the Blom Group Accounts.

Oslo, 24 March 2010

Gunnar Hirsti
Board Chairman

Per Kyllingstad
Board Member

Bente Loe
Board Member

BLOM GROUP ACCOUNTS

CASH FLOW STATEMENT – BLOM GROUP

INDIRECT MODEL

(Amounts in NOK 1000)

	Note	2009	Adjusted 2008

CASH FLOWS FROM OPERATIONAL ACTIVITIES
Pre-tax profit/loss		-93 960	17 768
+ Depreciation and write-downs	2/3	146 138	81 340
- Taxes paid		-4 875	-16 394
+/- Change in receivables from customers		112 767	-131 469
+/- Change in stocks and work in progress		16 121	-51 275
+/- Change in supplier debt		24 219	1 180
+/- Currency translation effects and other accruals		-127 113	68 616
A = Net cash flow from operational activities		73 297	-30 234

CASH FLOW FROM INVESTMENT ACTIVITIES
- Payments for purchase of operating assets	2/3	-76 555	-90 201
- Payments for acquisition of companies		0	-40 050
B = Net cash flow from investment activities		-76 555	-130 251

CASH FLOW FROM FINANCING ACTIVITIES
+ New long-term debt	8	287 269	0
- Payments on long-term debt and loans	8	-201 643	-23 344
+/- Net change in overdraft facilities	8	6 023	-48 178
- Net payments for purchase of treasury shares		0	-48 672
C = Net cash flow from financing activities		91 649	-120 194

A+B+C Net change in cash and cash equivalents		88 392	-280 679
+ Cash and cash equivalents		76 482	357 161
= Cash and cash equivalents		164 874	76 482

Note 1 to 26 is an integrated part of the Blom Group Accounts.

BLOM GROUP ACCOUNTS

CHANGES IN EQUITY – BLOM GROUP

(Amounts in NOK 1000)

	Note	Nominal share capital	Treasury shares	Share premium account	Currency translation differences	Retained earnings	TOTAL	Minority interests	Equity

Equity as of 1 Jan 2009		4 170		129 581	-12 843	699 118	820 026	3 892	823 918
Net profit/loss for the year
Purchase of treasury shares
Minority interests related to acquisition of businesses
Currency translation differences	21		-110			13 935
-48 562	13 935
-48 672	-633	13 302
-48 672
								-593	-593
					67 537		67 537	-196	67 341
Equity as of 31 Dec 2009	25	4 170	-110	129 581	54 694	664 491	852 826	2 470	855 296
Net profit/loss for the year
Currency translation differences	21					-82 504	-82 504	-506	-83 010
					-74 182		-74 182	-575	-74 757
Equity as of 31 Dec 2009		4 170	-110	129 581	-19 488	581 987	696 140	1 389	697 529

Note 1 to 26 is an integrated part of the group accounts.

NOTES TO THE BLOM GROUP ACCOUNTS

NOTES TO THE BLOM GROUP ACCOUNTS | 33

NOTES TO THE ACCOUNTS

GENERAL INFORMATION

Blom ASA collects, processes and sells high quality map data. The group possesses unique databases, and has developed applications and services for navigation and location-based services. Blom ASA has subsidiaries in 13 countries.

Blom ASA is a public limited company registered and domiciled in Norway. The office address is Drammensveien 165, 0277 Oslo, Norway. Blom ASA is listed on Oslo Stock Exchange.

The consolidated accounts were approved by the company's Board of Directors on 24 March 2010.

SUMMARY OF THE MOST IMPORTANT ACCOUNTING PRINCIPLES

The most important accounting principles applied by the group in the preparation of the consolidated accounts are described below. These principles have been applied identically to all the periods that are presented unless otherwise stated in the description.

BASIC PRINCIPLES

The consolidated accounts have been prepared in accordance with the International Financial Reporting Standard (IFRS) as stipulated by the EU.

These consolidated accounts have been prepared on the basis of the historical cost principle, with the exception of financial instruments that are assessed at market value. The preparation of accounts in accordance with IFRS requires the use of estimates. In addition, the application of the company's accounting principles requires that the management exercise judgement. Areas that contain a large degree of such discretionary assessments, a high degree of complexity, or areas where the assumptions and estimates are of significance to the consolidated accounts are described in Note 24.

a) New and amended standards implemented by the group. The group has implemented the following new standards and amendments in 2009.

IFRS 8 Operating Segments replaces IAS 14 Segment Reporting and coordinates segment reporting with the requirements in the FASB standard SFAS 131, Disclosures about Segments of an Enterprise and Related Information. The new standard requires the use of a management approach where segment information is presented in the same manner as in internal reporting. This has resulted in an increase from one to two segments.
IAS 28 (amended), Investments in Associates (and resulting amendments to IAS 32, Financial Instruments: Presentation, and IFRS 7, Financial Instruments: Disclosures (entry into force from 1 January 2009). This amendment is part of the IASB's annual improvement project, which was published in May 2008. An investment in an associated company shall be treated as a separate asset in connection with impairment tests. A write-down shall not be allocated to specific assets within the investment, such as goodwill. The reversal of a write-down will be recorded on the balance sheet as an adjustment of the carrying value of the investment provided the recoverable value of the investment increases.
IAS 36 (amended), Impairment of Assets. This amendment is part of the IASB's annual improvement project, which was published in May 2008. When the fair value less selling expenses is calculated by means of discounted cash flows, additional information shall be provided corresponding to what is provided for the calculation of the utility value.
IAS 19 (amended), Employee Benefits (entry into force from 1 January 2009). This amendment is part of the IASB's annual improvement project, which was published in May 2008.
The amendment clarifies that plan changes that entail a change in whether a pension commitment is affected by future salary increases is a reduction, while a change that changes the pension attributed to services in earlier periods entails a negative cost for pension earnings in earlier periods if it results in a reduction of the present value of the defined benefit pension obligations.
The definition of the return on pension fund assets has been amended and stipulates now that administrative expenses in the plan will be deducted from the calculation of the return on pension fund assets only if such expenses have been excluded from the measurement of the defined benefit pension obligations.
The difference between short-term and long-term employee benefits will be based on whether the benefits fall due for payment before or after 12 months after the employee has provided the service.
IAS 37 Provisions, Contingent Liabilities and Contingent Assets, requires that contingent liabilities are specified in a note and not recorded on the balance sheet. IAS 19 has been amended for consistency.
IAS 39 (amended), Financial Instruments: Recognition and Measurement (entry into force from 1 January 2009). This amendment is part of the IASB's annual improvement project, which was published in May 2008.
The amendment clarifies that it is possible to reclassify into or out of the fair value through the profit and loss account category when a derivative qualifies or ceases to qualify as a hedging instrument in cash flow hedging or net investment hedging.
The definition of financial assets or financial liabilities at fair value through the profit and loss account has also changed. The amendment clarifies that it is the circumstances at the point in time for the initial recognition on the balance sheet that determine whether a financial asset or liability is part of a portfolio where there is a pattern of short-term profit taking.
The current guidelines for the designation and documentation of hedge transactions stipulate that the hedging instrument must involve an external party in relation to the reporting unit and lists a segment as an example of a reporting unit. If hedge accounting is to be used at the segment level at present, the hedge accounting requirements must be met for the segment in question. The amendment eliminates the segment example so that the guidelines are consistent with

NOTES TO THE BLOM GROUP ACCOUNTS

IFRS 8, Operating Segments, which requires that information on segments shall be based on information that is reported to the enterprise's highest decision-maker.

For a new measurement of the carrying value of a debt instrument in connection with the termination of hedge accounting, for example, the amendment clarifies that a revised effective interest rate (calculated on the date when the value hedging ceases) shall be used.
IAS 1 (amended), Presentation of Financial Statements (entry into force from 1 January 2009). This amendment is part of the IASB's annual improvement project, which was published in May 2008. The amendment clarifies that there is no direct relationship between classification as held for trading purposes (part of the fair value through the profit and loss account category) in accordance with IAS 39, Financial Instruments: Recognition and Measurement and classification as short-term or long-term items.
A number of amendments have been introduced to IFRS 7, Financial Instruments: Disclosures, IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors, IAS 10, Events after the Reporting Period, IAS 18, Revenue and IAS 34, Interim Financial Reporting, which is part of the IASB's annual improvement project that was published in May 2008 (not addressed above). These amendments will probably not affect the consolidated accounts and have, therefore, not been analysed in detail.
IFRIC 16, Hedges of a Net Investment in a Foreign Operation (entry into force from 1 October 2008). IFRIC 16 clarifies the accounting of hedges of a net investment. This includes the fact that the hedging of net investments relates to different functional currencies and not presentation currencies, in addition to the fact that hedging instruments can be owned anywhere in the group (but not in the net investment to be hedged). Requirement in IAS 21, The Effects of Changes in Foreign Exchange Rates, applies to the hedging object. The group will apply IFRIC 16 from 1 January 2009. It is not expected that the interpretation will have a significant effect on the consolidated accounts.

b) Standards, amendments and interpretations of existing standards that have not yet entered into force, for which the company has not chosen early implementation

The following standards, amendments and interpretations of existing standards have been published and will be mandatory for the group for annual accounts that start on 1 January 2010 or later, but the group has not chosen early implementation:

IAS 27 (revised), Consolidated and Separate Financial Statements (entry into force from 1 July 2009). The revised standard requires that the effect of all transactions with non-controlling interests shall be entered against the equity if there is no change in control, and these transactions will no longer result in goodwill or gains or losses. This standard also specifies the accounting when the control ceases. Any remaining interest in the unit will be measured at fair value,

and the loss of gain will be recognised in the profit and loss account. The group will apply IAS 27 (revised) progressively from 1 January 2010 for transactions with non-controlling interests.

IFRS 3 (revised), Business Combinations. The revised standard continues to use the acquisition method for business combinations, but with certain significant changes. For example, all consideration for the purchase of businesses shall be accounted for at fair value at the time of the acquisition. Contingent consideration is normally classified as a liability, and subsequent changes in value are recognised in the profit and loss account. From acquisition to acquisition it is up to the group each time whether any non-controlling interests in the acquired company are to be measured at fair value or just at the non-controlling interest share of the net assets in the acquired company. All transaction costs shall be recognised. The group will use IFRS 3 (revised) progressively for all business combinations from 1 January 2010.
IFRS 9, "Financial Instruments" (applies to annual accounts that start on or after 1 January 2013) replaces the measurement rules in IAS 39 for financial assets. Measurement in IFRS 9 is determined by the company's business model and the characteristics of the individual financial asset. A financial asset can be measured at amortised cost if the object of the company's business model is to hold the asset in order to receive contractual cash flows and the cash flows from the asset only represent instalments and interest on the outstanding amount. The group and the parent company have not finished evaluating the effects of IFRS 9.

c) Interpretations and amendments to existing standards are not relevant to the group.

The following interpretations and amendments to existing standards are mandatory, but the management considers them not to be relevant to the group:

IFRIC 13, Customer Loyalty Programmes (entry into force from 1 July 2008). IFRIC 13 clarifies the accounting of arrangements where goods and services are sold together with a loyalty incentive for customers (such as loyalty points or free products). In such multi-component arrangements the payment received from the customer shall be allocated between the components in the arrangement based on fair values. IFRIC 13 is not relevant to the group's operations, since none of the companies in the group has any customer loyalty programme.
IAS 16 (amended), Property, Plant and Equipment (and resulting amendments to IAS 7, Statement of Cash Flows) (entry into force from 1 January 2009). This amendment is part of the IASB's annual improvement project, which was published in May 2008. Units that rent out assets and subsequently sell such assets as part of their ordinary operations present the payment from the sale of such assets as income and transfer the carrying value of the asset to stocks when the asset is classified as held for sale. A resulting amendment

NOTES TO THE BLOM GROUP ACCOUNTS | 35

to IAS 7 confirms that the cash flows originating from the purchase, rental and sale of such assets are classified as cash flows from operations. The amendment will not have any effect on the group's operations because none of the companies in the group have ordinary operations related to the rental and subsequent sale of assets.

IAS 27 (amended), Consolidated and Separate Financial Statements (entry into force from 1 January 2009). This amendment is part of the IASB's annual improvement project, which was published in May 2008. When an investment in a subsidiary that is accounted for in the company accounts in accordance with IAS 39, Financial Instruments: Recognition and Measurement, is classified as held for sale in accordance with IFRS 5, Non-Current Assets Held-for-Sale and Discontinued Operations, IAS 39 shall still be used. This amendment will not have any effect on the group's operations, because it is the group's policy that investments in subsidiaries shall be accounted for at the acquisition cost in the company accounts in the group.
IAS 28 (amended), Investments in Associates (and resulting amendments to IAS 32, Financial Instruments: Presentation, and IFRS 7, Financial Instruments: Disclosures) (entry into force from 1 January 2009). This amendment is part of the IASB's annual improvement project, which was published in May 2008. When an investment in an associated company is accounted for in accordance with IAS 39, Financial Instruments: Recognition and Measurement, it is pointed out now that it is only the disclosure requirement in IAS 28 37(f) that must be complied with, in addition to the disclosure requirements resulting from IFRS 7, Financial Instruments: Disclosures. This amendment will not have any effect on the group's operations, because it is the group's policy that investments in associated companies shall be accounted for in accordance with the equity method in the consolidated accounts.
IAS 29 (amended), Financial Reporting in Hyperinflationary Economies (entry into force from 1 January 2009). This amendment is part of the IASB's annual improvement project, which was published in May 2008. The guidelines have been amended to reflect the fact that more assets and liabilities are being measured at fair value rather than historical cost. This amendment will not have any effect on the group's operations, since none of the group's subsidiaries or associated companies operate in hyperinflationary areas.
IAS 38 (amended), Intangible Assets (entry into force from 1 January 2009). This amendment is part of the IASB's annual improvement project, which was published in May 2008. The amendment eliminates the wording stating that "there is rarely, if ever" support for the use of another method of depreciation that results in a lower amount of depreciation than use of the straight-line method. The amendment will not affect the group's operations, since all the intangible assets are depreciated by means of the straight-line method.
IAS 40 (amended), Investment Property (and resulting amendments to IAS 16) (entry into force from 1 January 2009). This amendment is part of the IASB's annual improvement project, which was published in May 2008. Plant under construction or development for future use as investment property is within the scope of IAS 40. When the fair value model is used, such plants are measured at fair value. When the fair value of investment property under construction cannot be measured reliably, the property shall be measured nevertheless at cost until the earlier of the completion date or the date when the fair value can be measured reliably. The amendment will not have any effect on the group's operations, since the group does not have any investment properties.
IAS 41 (amended), Agriculture (entry into force from 1 January 2009). This amendment is part of the IASB's annual improvement project, which was published in May 2008. It requires that a market-based discount rate shall be used when fair value calculations are based on discounted cash flows and eliminates the ban against the inclusion of biological conversion when calculating fair value. The amendment will not have any effect on the group's operations, since there is no biological production in the group.
IAS 24 (revised), "Related Party Disclosures" (applies to annual accounts that start on or after 1 January 2011). The amendment entails more lenient disclosure requirements for transactions with public related parties. The company does not have any public related parties. The amendment is not expected to have any effect on the note information presented by the group or parent company in the future.
Amendment of IAS 32: Rights issues (applies to annual accounts that start on or after 1 February 2010). The amendment entails that subscription rights in offerings where subscription rights are allotted to all the existing shareholders based on how many shares they own prior to the share issues and the subscription price is a fixed amount in a current are to be classified as equity. The amendment is not expected to have any effect on the accounts of the group or parent company.
IFRIC 18, "Transfers of Assets from Customers" (applies to assets transferred from customers on or after 1 July 2009, approved by the EU for transfers in annual accounts that start on or after 1 November 2009). IFRIC 18 requires that a company receiving an asset from a customer evaluate to what extent the assets satisfies the definition of an asset in the regulatory framework and recognise the asset at fair value in the accounts accordingly. Income shall be recognised in accordance with IAS 18. The interpretation is not expected to have any significant effect on the accounts of the group or parent company.
IFRIC 19, "Conversion of Debt to Equity" (applies to annual accounts that start on or after 1 July 2010). IFRIC 19 clarifies the accounting treatment when a renegotiation entails that outstanding liabilities are converted in full or in part to equity instruments. IFRIC 19 requires that a gain or loss be calculated in the event of such a renegotiation. The interpretation is not expected to have any significant effect on the accounts of the group or parent company.

NOTES TO THE BLOM GROUP ACCOUNTS

CONSOLIDATION PRINCIPLES

Subsidiaries are companies where the group has a controlling interest. A controlling interest is normally achieved when the group owns, directly or indirectly, more than 50 per cent of the voting shares in the company and the group is able to exercise actual control over the company. Subsidiaries are consolidated from the point in time when control is transferred to the group and eliminated from consolidation when such control ends.

The acquisition method of accounting is used for the acquisition of subsidiaries. The acquisition cost is assessed at the fair value of the assets that are contributed as consideration for the acquisition, equity instruments that are issued, liabilities that are assumed, plus direct costs associated with the acquisition. Identifiable acquired assets, liabilities and conditional obligations that are assumed to be inherent to the integration of a business are assessed at their fair value, independent of any minority interests. The portion of the acquisition cost that exceeds the fair value of identifiable net assets in the subsidiary is recognised as goodwill.

All internal transactions, outstanding accounts and unrealised gains between group companies are eliminated. Unrealised losses are also eliminated unless the transaction establishes a loss in value on the transferred asset. The accounting principles in subsidiaries are changed as required to achieve compliance with the group's accounting principles.

ASSOCIATED COMPANIES

Associated companies are units where the group has a significant, but not controlling, influence. A significant influence exists normally for investments where the group has between 20 and 50 per cent of the voting capital. Investments in associated companies are recorded in accordance with the equity method of accounting. At the time of acquisition investments in associates are recognised in the accounts at the historical cost. The group's share of profits or losses in associated companies is recognised in the profit and loss account and added to the carrying value of the investments together with its share of unrecognised changes in equity. The group does not recognise its share of the losses in the profit and loss account if this entails that the book value of the investment becomes negative, unless the group has assumed liabilities or granted guarantees for the associated company's liabilities.

SEGMENT INFORMATION

Operating segments are reported in manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the steering committee that makes strategic decisions.

Foreign currency translation

a) Functional and presentation currencies

The accounts of the individual units in the group are measured in the currency that is used primarily in the economic area where the unit operates (functional currency). The consolidated accounts are presented in Norwegian kroner (NOK), which is both the functional and presentation currency for the parent company.

b) Transactions and balance sheet items

Transactions involving foreign currencies are translated into the functional currency using the exchange rates that are in effect at the time of the transactions. Foreign currency gains and losses that arise from the payment of such transactions and the translation of monetary items (assets and liabilities) at the rates in effect on the balance sheet date are recognised in the profit and loss account. If the foreign currency position is regarded as the hedging of a net investment in foreign business operations the gains or losses are entered directly against the equity.

c) Group companies

When consolidating the accounts of foreign subsidiaries, the profit and loss account is translated into the presentation currency according to average exchange rates for the year. Balance sheet items are translated at the exchange rate in effect on the date of the balance sheet. Currency translation gains or losses resulting from differences in the exchange rates in effect on the date of the balance sheet compared to the rates in effect at the previous year-end are entered directly against equity and specified separately.

When consolidating differences from the translation of net investments in foreign business operations, they are posted directly against equity. When portions of a foreign operation are sold the associated exchange difference entered directly against equity is recognised in the income statement as part of the gain or loss on the sale.

Goodwill and the fair value adjustments for assets and liabilities associated with the acquisition of a foreign unit are treated as assets and liabilities in the acquired unit and translated at the rate in effect on the date of the balance sheet.

RECOGNITION OF INCOME

Sales are recognised in the profit and loss account when the revenue can be measured reliably, it is probable that the financial benefits attributable to the transaction will pass to the group and special criteria related to various forms of sale have been met. Reliable measurement of sales is not regarded as possible until all the conditions linked to the sale have been fulfilled. The group bases its accounting estimates on historical data, an assessment of the type of customer and transaction, as well as any circumstances related to the individual transaction. The sale of services is recognised in the profit and loss account in the period in which the service was performed, based on the degree of completion of the transaction in question. The degree of completion is determined by measuring the services provided in relation to the total agreed volume of services to be provided. During the period when it has been identified that a project will result in a loss, the estimated loss on the contract will be recognised in the profit and loss account in its entirety. Work in progress represents the value of services performed in long-term projects, and the change in the work in progress is included under operating revenues. The sale of licences is recognised in the profit and loss account when the licences have been made available to the customer, and the risk related to the delivery has been transferred to the customer. In addition, the customer must have accepted the

NOTES TO THE BLOM GROUP ACCOUNTS | 37

delivery as part of the contract, and the period for submitting complaints must have expired or documentation must exist that all the criteria related to the delivery have been met.

TANGIBLE FIXED ASSETS

Tangible fixed assets are recorded in the accounts at historical cost less accumulated depreciation and write-downs. The historical cost includes the costs directly linked to the acquisition of the fixed asset. Subsequent expenses are added to the value of the fixed asset on the balance sheet or recorded separately on the balance sheet, when it is probable that the future economic benefits associated with the expense will accrue to the group and the expense can be measured reliably. Other repair and maintenance costs are recorded in the profit and loss account in the period when the expenses are incurred.

Depreciation is calculated based on the straight-line method so that the cost price of the fixed asset, or the re-valued or written-down value of the asset, is depreciated to the residual value over the expected life of the asset:

Airframes and engines	3-15 years
Lasers and digital cameras	3 - 5 year
Other equipment	2 - 5 year

The economic life of the fixed asset and the scrap value are reviewed on the date of each balance sheet and adjusted as required. When the book value of the fixed asset is higher than the estimated recoverable amount, the value is written down to the recoverable amount. Gains and losses on disposals are presented as part of the operating profit/loss and calculated by comparing the sales price with the book value.

INTANGIBLE FIXED ASSETS

Goodwill is the difference between the historical cost of the acquisition of a business and the fair value of the group's share of the net identifiable assets in the business at the time of the acquisition. Goodwill from the acquisition of subsidiaries is treated as an intangible fixed asset. Goodwill is tested annually for impairment in value, and it is recorded at historical cost less accumulated write-downs and amortisation.

In evaluating whether there is a need to write down goodwill, it is allocated to separate cash flow generating units. This allocation is made to the cash flow generating units or groups of cash flow generating units that are expected to benefit from the acquisition.

Patents and licences have a limited economic life and are recorded on the balance sheet at historical cost less depreciation. Patents and licences are depreciated by the straight-line method over their expected life (3-12 years).

LOANS

Loans are classified as current liabilities unless there is an unconditional right to postpone payment of the debt by more than 12 months from the date of the balance sheet.

STOCKS

Stocks are valued at the lower of historical cost or net realisable value. The historical cost is calculated by means of the first-in, first-out principle (FIFO). For finished goods and work in progress, the historical cost consists of the construction costs, consumption of materials, direct wage costs, other direct costs, and indirect costs related to the production (based on a normal capacity level). Loan costs are not included. The net realisable value is the estimated sales price under ordinary operations, less costs for preparation and sales.

RECEIVABLES FROM CUSTOMERS

Receivables from customers are recorded at fair value. For subsequent measurement, receivables from customers are assessed at their amortised cost by means of the effective interest method, less provision for losses that have been incurred. Provisions for losses on receivables from customers are recognised when there are objective indicators that the group will not receive settlement in accordance with the original terms. The amount of the write-down will be recorded in the profit and loss account.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents consist of cash, bank deposits, and other short-term, readily negotiable investments with an original maturity of less than three months. Utilised overdraft facilities are included under current liabilities on the balance sheet.

SHARE CAPITAL AND SHARE PREMIUM

Ordinary shares are classified as equity. Expenses that are directly attributable to the issuance of new shares less taxes are posted against the equity as a reduction in the proceeds.

Payments for the purchase of treasury shares are recorded as a reduction in equity. A loss or gain is not recognised in the profit and loss account for any purchase, sale, issuance or cancellation.

TAXES

The tax charge in the profit and loss account encompasses the tax payable for the period and the change in deferred tax. Tax is recognised in the profit and loss account, except when it is related to items that are entered directly against equity. If this is the case, the tax will also be entered directly against equity.

The tax charge is calculated in accordance with the tax laws and regulations that have, or have essentially, been adopted by the tax authorities on the date of the balance sheet. It is the legislation in the countries where the group's subsidiaries or associated companies operate and generate taxable income that determine how the taxable income is calculated. The management evaluates the group's tax positions for each period with regard to situations where the current tax laws are subject to interpretation. Provisions are allocated for the expected tax charges based on the management's evaluations.

NOTES TO THE BLOM GROUP ACCOUNTS

Deferred tax is calculated for all the temporary differences between the tax values and consolidated accounting values of assets and liabilities. If deferred tax arises in connection with the initial recognition of a liability or asset on the balance sheet in a transaction that is not a business combination, and this transaction does not affect the financial or taxable profit/loss at the time of the transaction, then it will not be recorded on the balance sheet. Deferred tax is determined by means of the tax rates and tax laws that have been adopted or essentially adopted on the date of the balance sheet, which are assumed to apply when the deferred tax asset is realised or when the deferred tax is settled.

Deferred tax assets are recognised provided future taxable income is probable and the temporary differences can be offset against this income.

Deferred tax is calculated based on temporary differences from investments in subsidiaries and associated companies except when the group controls the timing for the reversal of the temporary differences and it is probable that they will not be reversed in the foreseeable future.

PROVISIONS

The group recognises provisions in the accounts when there is a legal or self-imposed obligation to do so as a result of earlier events, there is a preponderance of evidence that the obligation will be settled by a transfer of economic resources, and the size of the obligation can be estimated with an adequate degree of reliability. Provisions are not allocated for future operating losses.

PENSION SCHEMES

The companies in the group have different pension schemes. The pension schemes are financed in general by payments to insurance companies or pension funds, as determined by periodic actuarial calculations. The group has both defined contribution and defined benefit plans. A defined contribution plan is a pension scheme in which the group pays fixed contributions to a separate legal entity. The group does not have any legal or other obligation to pay additional contributions if this unit does not have sufficient funds to pay all employees benefits relating to their service in current and prior periods. The contributions are recognised as an employee benefit expense on a linear line basis for the period in question. Contributions paid in advance are recognised as an asset in the accounts if the contribution can be refunded or reduce future payments.

A defined benefit plan is a pension scheme that defines the pension payments employees will receive when they retire. Pension payments are normally dependent on one or more factors such as age, years of service and salary level. The liability recorded on the balance sheet relating to defined benefit plans is the present value of the defined benefits on the date of the balance sheet less the fair value of the pension assets, adjusted for unrecognised estimate deviations and costs relating to pension benefits earned from prior periods. The pension obligation is calculated annually by an independent actuary on the basis of a linear model. The present value of the defined benefits is determined by discounting the estimated future payments at the interest rate for a bond issued by a company with high creditworthiness in the same currency as the benefits will be paid with a term that is approximately the same as the term of the associated pension obligation.

Estimate deviations due to new information or changes in the actuarial assumptions in excess of 10 per cent of the value of the pension assets or 10 per cent of the pension obligations will be recorded in the profit and loss account over a period that corresponds to the employees' expected average remaining service lifetime.

LEASING

Leasing agreements where a significant part of the risk does not lie with the lessee are classified as operating leasing agreements. Payments for operating leasing agreements (less any financial subsidies / contributions from the lessor) are recorded in equal amounts over the term of the leasing agreement.

Leasing agreements for tangible fixed assets where the group has significant risk and control are classified as financial leasing agreements. Financial leasing agreements are recorded on the balance sheet at the start of the leasing agreement at the lower of the fair value of the leased asset and the present value of the total minimum rent. Each rent payment consists of an interest element and a principal element. The interest element is recognised as a financial cost and the principal element reduces the liability. The interest cost is recorded in the profit and loss account under financial items, and it is distributed over the leasing period so that the interest rate on the residual liability is constant for each period. The leasing liability in question, less the interest costs, is classified under other long-term liabilities. Tangible fixed assets acquired through financial leasing agreements are depreciated over the shorter of the expected life of the asset or term of the leasing agreement.

NOTES TO THE BLOM GROUP ACCOUNTS | 39

NOTE 1: SEGMENT INFORMATION

The group reports on its operations primarily in two business areas; Blom Information Services, BIS, and Blom Geo Engineering Services, BGES. The activities in the business areas are carried out primarily through independent companies, and the distribution of revenues, costs, liabilities and investments is based on the accounts of the individual companies.

THE RESULTS PER BUSINESS AREA FOR 2009 ARE AS FOLLOW:
(Amounts in NOK 1000)

	BGES	BIS	Net Allocated	Group
Operating revenues	617 540	119 361	0	736 901
Depreciation and amortisation	44 391	101 613	134	146 138
Operating profit/loss	7 895	-26 517	-35 210	-53 832
Net financial items				-39 562
Pre-tax profit/loss				-93 960
Taxes				10 949
Net profit/loss for the year				-83 012
Assets	586 459	566 178	260 958	1 413 595
Investments	30 258	70 773	0	101 031
Goodwill	93 915	176 664	0	270 579

THE RESULTS PER BUSINESS AREA FOR 2008 ARE AS FOLLOW:
(Amounts in NOK 1000)

	BGES	BIS	Net Allocated	Group
Operating revenues	610 393	211 291	0	821 684
Depreciation and amortisation	56 825	24 468	47	81 340
Operating profit/loss	54 262	6 929	-33 223	27 968
Net financial items				-10 200
Pre-tax profit/loss				17 768
Taxes				-4 466
Net profit/loss for the year				13 302
Assets	741 977	636 214	164 227	1 542 418
Investments	74 790	43 400	40 493	158 683
Goodwill	158 917	208 579	0	367 496

Assets allocated to segments consist primarily of tangible fixed assets, intangible assets, work in progress and receivables from customers. Deferred tax assets and cash are not allocated to segments. The parent company's operating expenses (mainly remuneration and expenses related to head office) and parent company's assets are not allocated to segments.

Investments consist of the addition of tangible fixed assets and intangible assets. Unallocated investments in 2008 consist of a 20 per cent ownership interest in NDrive. The group's largest markets by revenue are the Nordic region, Italy, Spain and the UK.

NOTES TO THE BLOM GROUP ACCOUNTS

Operating revenues are allocated based on the customer's home country.

OPERATING REVENUES

(Amounts in NOK 1000)

	2009	2008
Norway	46 939	61 127
Other Nordic countries	129 195	110 603
Italy	182 389	154 125
Spain	112 226	132 157
UK	74 947	33 752
Other countries	191 205	329 920
Total operating revenues	736 901	821 684

ASSETS

(Amounts in NOK 1000)

	2009	2008
Norway	284 864	216 947
Other Nordic countries	152 314	166 584
Italy	318 589	356 694
Spain	220 197	423 458
UK	88 492	125 341
Other countries	85 863	86 356
	1 150 329	1 378 191
Unallocated assets	263 276	164 226
Total assets	1 413 595	1 542 418

INVESTMENTS

(Amounts in NOK 1000)

	2009	2008
Norway	73 559	36 310
Other Nordic countries	4 542	16 831
Italy	5 579	19 266
Spain	7 296	22 003
UK	5 398	8 617
Other countries	4 656	55 656
Total investments	101 031	158 683

NOTES TO THE BLOM GROUP ACCOUNTS | 41

NOTE 2: TANGIBLE FIXED ASSETS

(Amounts in NOK 1000)

	Buildings	Mestinery, fixtures, etc.	Total
2008 accounting year
Book value as at 1 January 2008	414	265 268	265 682
Currency translation differences	6	10 467	10 473
Additions	219	98 457	98 676
Disposals/other movements	0	13 912	13 912
Depreciation for the year	114	72 781	72 895
Book value as at 31 December 2008	525	315 323	315 848
As at 31 December 2008
Historical cost	731	481 313	482 044
Accumulated depreciation	206	165 990	166 196
Book value as at 31 December 2008	525	315 323	315 848
2009 accounting year
Book value as at 1 January 2009	525	315 323	315 848
Currency translation differences	-16	-29 193	-29 209
Additions	498	95 101	95 599
Disposals/other movements 1)	78	-5 055	-4 977
Depreciation for the year	86	91 332	91 418
Book value as at 31 December 2009	843	294 954	295 797
As at 31 December 2009
Historical cost	1 135	552 276	553 411
Accumulated depreciation	292	257 322	257 614
Book value as at 31 December 2009	843	294 954	295 797

1) In disposals/other movements reclassification is included in tangible fixed assets and intangible fixed assets.

NOTES TO THE BLOM GROUP ACCOUNTS

NOTE 3: INTANGIBLE FIXED ASSETS

(Amounts in NOK 1000)

	Goodwill	Patents, licences and similar rights	Total
2008 accounting year
Book value as at 1 January 2008	308 680	69 286	377 966
Currency translation differences	58 816	7 742	66 558
Additions	0	14 196	14 196
Disposals/other movements	0	-25 820	-25 802
Depreciation for the year	0	8 445	8 445
Book value as at 31 December 2008	367 496	56 959	424 455
As at 31 December 2008
Historical cost	367 781	89 487	457 268
Accumulated depreciation	285	32 528	32 813
Book value as of 31 December 2008	367 496	56 959	424 455
2009
Book value as at 1 January 2009	367 496	56 959	424 455
Currency translation differences	-53 147	-1 301	-54 448
Additions	0	5 431	5 431
Disposals/other movements 1)	0	13 439	13 439
Depreciation and amortization for the year	43 770	10 950	54 720
Book value as at 31 December 2009	270 579	36 700	307 279
As at 31 December 2009
Historical cost	314 634	80 179	394 813
Accumulated depreciation and amortization	44 055	43 479	87 534
Book value as at 31 December 2009	270 579	36 700	307 279

1) In disposals/other movements reclassification is included intangible fixed assets and intangible fixed assets.

WRITE-DOWN TEST FOR GOODWILL

Goodwill in the company arose due to the acquisition of companies from 2004 to 2007 inclusive.

The group performs annual tests to assess whether the value of goodwill is impaired. Goodwill is recorded on the balance sheet at historical cost less write-downs. In 2009 the company took a write-down of NOK 44 million in connection with BGES segment in the Spanish subsidiary. The reason to the depreciation is the weak market development in Spain. Due to mutual cash flow dependency between the company's legal entities within the company's two segments, the company is regarded as having two cash flow generating units, and goodwill in the company is allocated to these two cash flow generating units. The recoverable amounts from the cash flow generating units are calculated based on the value determined for the asset by calculating the utility value. These calculations require the use of estimates.

The testing of goodwill uses liquidity forecasts before tax based on the 2010 budget approved by the management. Different growth assumptions are used for each of the cash-generating units, BGES and BIS, to reflect the expected market performance of the individual markets. In addition, a gradual reduction in the number of credit days to 130 and 31 days, respectively, for BGES and BIS has been assumed. The value of goodwill is tested by creating 5-year liquidity forecasts and using a cautiously estimated terminal value (5-year cash flow with 3 per cent growth), and then discounting these cash flows by the required rate of return on the total assets. The required rate of return used in the test is 9.5 per cent before tax. The present value of the cash flow exceeded the book value of capital assets and net working capital. See note 24 for a sensitivity analysis for the write-down test.

NOTES TO THE BLOM GROUP ACCOUNTS | 43

NOTE 4: STOCKS AND WORK IN PROGRESS

Work in progress includes accrued, unbilled work on long-term projects of NOK 261.2 million in 2009 and NOK 234.7 million in 2008.

(Amounts in NOK 1000)

	2009	2008
Production materials	2 826	4 352
Total stocks	2 826	4 352

The cost of sales included in the cost of materials totalled TNOK 320 in 2009 and TNOK 3,345 in 2008.

NOTE 5: CUSTOMER RECEIVABLES AND OTHER RECEIVABLES

(Amounts in NOK 1000)

	2009	2008
Receivables from customers	259 197	383 096
Write-down for expected losses	-18 945	-30 077
Net receivables from customers	240 252	353 019
Prepayments	13 565	12 523
Other current receivables	21 839	23 796
Total other current receivables	35 404	36 319
Total current receivables	275 656	389 338

RECOGNISED LOSSES ON RECEIVABLES FOR THE YEAR:

(Amounts in NOK 1000)

	2009	2008
Change in provisions for expected losses	-11 132	26 099
Realised losses for the year	24 497	1 478
Total recognised losses	13 365	27 577

As at 31 December 2009 the provisions for probable losses on receivables from customers totalled TNOK 18,945 (2008: TNOK 30,077). The provisions in 2009 are related primarily to Spain.

Other current receivables include, for example, prepaid government taxes and insurance settlement payments.

NOTES TO THE BLOM GROUP ACCOUNTS

AGE DISTRIBUTION OF GROUP'S RECEIVABLES FROM CUSTOMERS:
(Amounts in NOK 1000)

	2008	2008

Receivables from customers not due for payment	165 925	275 852
Up to 30 days	11 499	31 620
Between 30 and 90 years	15 414	15 530
Over 90 days	47 463	30 017
Total outstanding receivables	74 327	77 167
Total receivables from customers	240 252	353 019

RECORDED VALUE OF THE GROUP'S RECEIVABLES FROM CUSTOMERS AND OTHER RECEIVABLES BY CURRENCY:
(Amounts in NOK 1000)

	2009	2008
NOK	9 981	17 252
DKK	17 953	19 983
GBP	8 923	10 272
EUR	207 661	313 195
Other currencies	31 139	28 636
Total current receivables	275 657	389 338

NOTE 6: CASH AND CASH EQUIVALENTS

(Amounts in NOK 1000)

	2009	2008
Cash and bank deposits	149 837	70 972
Restricted bank deposits	5 036	5 510
Short-term bank investments	10 000	0
	164 873	76 482

The restricted bank deposits include the employees' tax withholdings. The group has overdraft facilities totalling NOK 166.0 million, and NOK 89.8 million of these facilities were utilised as at 31 December 2009.

Blom ASA has a corporate cash management system with Skandinaviska Enskilda Banken that covers most of the group's subsidiaries.

NOTES TO THE BLOM GROUP ACCOUNTS | 45

NOTE 7: PENSIONS

(Amounts in NOK 1000)

	2009	2008
Book value pension obligations	20 625	22 878
Cost charged to the profit and loss account (Note 12)
Defined benefit pension plans	2 063	1 035
Pension plans based on deposits	6 725	6 634
Total	8 788	7 669

The following companies are included in this table:

Blom ASA, Blom CGR (Italy), Blom Deutschland (Germany) and Blom Nusantara (Indonesia).

PENSION BENEFITS:

(Amounts in NOK 1000)

	2009	2008
Book value of obligation is determined as follows
Present value of accrued pension obligations for benefit plans in fund-based schemes	5 337	5 025
Fair value of pension fund assets	-2 759	-2 759
	2 578	2 266
Present value of obligation for non-fund-based schemes	18 322	19 938
Unrecognised estimate deviations	-252	700
Unrecognised costs related to pension benefits earned in prior periods	-23	-26
Net pension obligations on the balance sheet	20 625	22 878

CHANGES IN THE DEFINED BENEFIT PENSION OBLIGATIONS DURING THE YEAR:

(Amounts in NOK 1000)

	2009	2008
Pension obligations as at 1 January	25 067	23 045
Present value of current year's pension benefits earned	1 841	780
Interest costs	843	899
Actuarial losses/(gains)	473	1 001
Foreign currency fluctuations	-2 603	3 737
Benefits paid	-2 237	-3 825
Pension obligations as at 31 December	23 384	25 637

NOTES TO THE BLOM GROUP ACCOUNTS

CHANGE IN THE FAIR VALUE OF THE PENSION ASSETS:

(Amounts in NOK 1000)

	2009	2008

1 January	-2 759	-2 759
Expected return on pension fund assets	-147	-147
Contributions from employer	147	147
31 December	-2 759	-2 759

TOTAL COST RECOGNISED IN PROFIT AND LOSS ACCOUNT:

(Amounts in NOK 1000)

	2009	2008
Cost of pension benefits earned in current period	1 483	757
Interest costs	401	320
Expected return on pension fund assets	-147	-147
Actuarial gains and losses	125	52
Employer's share of National Insurance contributions	201	51
Losses from reduction	0	2
Total pension costs	2 063	1 035

ECONOMIC ASSUMPTIONS:

(Amounts in NOK 1000)

	2009	2008
Discount rate	3.34-9.5 %	3.56-12 %
Expected return on pension fund assets	0.0-5.6 %	0.0-6.3 %
Annual salary inflation	2.0-10.0 %	2.0-10 %
Annual pension adjustment	2.0-3.0 %	2.0 %

Blom Nusantara (Indonesia) has a discount rate of 9.5 per cent.

Mortality rate

The mortality assumptions are based on published statistics and experience in each individual country.

Average life expectancy in Norway on the date of the balance sheet is in 2009 84 years for women (2008: 84 years) and 80 years for men (2008: 80 years).

NOTES TO THE BLOM GROUP ACCOUNTS | 47

The average expected life in Italy is 85 years for women and 80 years for men. The average expected life in Germany is 82 years for women and 76 years for men.

The assets in fund-based schemes in Norway are managed by a life insurance company that has invested the funds in compliance with the regulations that apply to life companies. The actual return on the pension fund assets was TNOK 147 in 2009 (2008: TNOK 147).

NOTE 8: LOANS AND OTHER LONG-TERM LIABILITIES

The group issued a bond loan with a nominal value of NOK 300 million on 25 September 2009. The loan matures on 25 September 2012. The covenants attached to the bond loan include maximum net interest bearing liabilities / EBITDA of 3.5 x and a minimum equity ratio of 40 per cent. The company has not violated these financial covenants.

The group has overdraft facilities and factoring agreements in Blom ASA, Blom CGR, Blom Sistemas Geoespaciales and Blom Romania, which are renewed every year. These overdraft facilities total NOK 171 million, and since these countries had total cash reserves of NOK 48 million the total funding available was NOK 219 million.

The group also utilises lease financing (Note 13).

THE COMPOSITION OF LONG-TERM LIABILITIES AND SHORT-TERM INTEREST BEARING LIABILITIES IS AS FOLLOWS:
(Amounts in NOK 1000)

	2009	2008
Long-term liabilities
Bond loans	288 330	0
Bank loans	26 816	169 799
Financial leasing	21 371	31 790
Other long-term liabilities	19 840	31 031
	356 366	232 620
Short-term interest bearing liabilities
Overdraft facilities	89 824	75 101
Bank loans	15 615	66 345
Financial leasing	15 416	21 126
	120 855	162 572

Other long-term liabilities consist of loans of NOK 23 million provided by the Spanish authorities with an interest-free period for the first years of the loans and grants from the Spanish authorities totalling NOK 8 million, which will be reduced in step with the amortisation of relevant assets in Blom Sistemas Geoespaciales.

The fair value of loans provided by the Spanish authorities of NOK 23 million and grants of NOK 8 million from the Spanish authorities is NOK 19 million as at 31 December 2009.

The interest-bearing debt has adjustable interest rates or interest adjustment clauses that are shorter than three months at any given time. Since the debt can be repaid at the points in time when the interest rate is adjusted, the difference between the fair value and book value will be small and insignificant with the exception of the Spanish interest-free loans and grant.

NOTES TO THE BLOM GROUP ACCOUNTS

THE EFFECTIVE INTEREST RATE ON THE DATE OF THE BALANCE SHEET WAS AS FOLLOWS:
(Amounts in NOK 1000)

	2009		2008
	NOK	EUR/GBP	NOK	EUR/GBP
Bond loans	10.2 %
Bank loans		2.5-6 %	7.0 %	5.0-7.5 %
Financial leasing		3-3.3 %	6.2 %	4.8-6.2 %
Overdraft facilities		1.3-4.5 %		4.5-5.0 %
Other long-term liabilities		0 %		0 %

BOOK VALUE OF THE GROUP'S LONG-TERM DEBT AND CURRENT INTEREST-BEARING DEBT:
(Amounts in NOK 1000)

	2009	2008
NOK	302 949	217 785
GBP	6 634	8 209
EUR	144 628	161 166
Other currencies	23 010	8 032
	477 221	395 192

In addition, the company's multicurrency overdraft facility with SEB of NOK 30 million has been drawn down over time in different currencies and the currency drawdown total EUR 25.6 million, USD 2.8 million and GBP 2 million. The overdraft facility has not been utilised, but the company is exposed to currency fluctuations in these gross positions in EUR, GBP and USD.

THE MATURITY STRUCTURE OF THE GROUP'S SHORT-TERM AND LONG-TERM INTEREST-BEARING DEBT IS AS FOLLOWS:
(Amounts in NOK 1000)

	2010	2011	2012	2013	2014
Bond loans			288 330
Bank loans	15 615	10 618	8 914	4 839	2 445
Financial leasing	15 416	2 486	2 027	59	16 799
Overdraft facilities	89 824
Other liabilities		893	2 925	3 840	12 191
Total	120 855	13 997	302 196	8 738	31 435

NOTES TO THE BLOM GROUP ACCOUNTS | 49

NOTE 9: TAXES

Deferred taxes are netted if the group has a legal right to offset deferred tax assets against deferred taxes on the balance sheet and if the deferred taxes are owed to the same tax authority. The following amounts have been netted:

(Amounts in NOK 1000)

	2009	2008

Deferred tax assets
Deferred tax assets that reverse after more than 12 months	-46 837	-28 282
Deferred tax assets that reverse within 12 months	-3 591	-11 267
Deferred tax assets as at 31 December	-50 428	-39 549

Deferred taxes
Deferred taxes that reverse after more than 12 months	10 700	6 031
Deferred taxes that fall due for payment within 12 months	1 651	7 435
Deferred taxes as at 31 December	12 351	13 466
Net deferred taxes	-38 077	-26 083

Change in recognised deferred taxes

Book value as at 1 January	-26 083	-22 139
Foreign currency translation	6 536	566
Recognised in P&L account during the period	-18 530	-4 510
Book value as at 31 December	-38 077	-26 083

CHANGE IN DEFERRED TAX ASSETS AND DEFERRED TAXES

(WITHOUT NETTING WITHIN THE SAME TAX REGIME):

(Amounts in NOK 1000)

	Machinery and plant	Projects	Other	Total
Deferred taxes
1 January 2008	7 023	2 010	1 179	10 212
Recognised in P&L account during the period	2 958	-936	1 232	3 254
31 December 2008	9 981	1 074	2 411	13 466
Recognised in P&L account during the period	-3 164	577	1 472	-1 115
31 December 2009	6 817	1 651	3 883	12 351

(Amounts in NOK 1000)

	Tax loss carryforward	Other	Total
Deferred tax assets
1 January 2008	-35 605	3 254	-32 351
Recognised in P&L account during the period	2 350	-10 114	-7 764
Foreign currency differences	-23	589	566
31 December 2008	-33 278	-6 271	-39 549
Recognised in P&L account during the period	-22 046	4 631	-17 415
Foreign currency differences	7 260	-724	6 536
31 December 2009	-48 064	-2 364	-50 428

NOTES TO THE BLOM GROUP ACCOUNTS

The deferred tax assets related to tax loss carryforwards are recognised on the balance sheet when it is probable that the group can apply this against future taxable income. The table below shows that most of the tax loss carryforwards expires after 2013 (or that there is no deadline linked to the right to carry forward). The deferred tax assets related to tax loss carryforwards that are not recognised on the balance sheet totalled NOK 11.5 million as at 31 December 2009 and NOK 15.4 million as at 31 December 2008. Reference is also made to Note 24.

(Amounts in NOK 1000)

	Amount

Expiration dates for tax loss carryforward
2010	0
2011	0
2012	67
2013	0
Later than 2013	116 600
No restrictions	57 039
Total tax loss carryforward	173 706

(Amounts in NOK 1000)

	2009	2008

Tax charge
Tax payable	7 581	8 976
Change in deferred taxes	-18 530	-4 510
	-10 949	4 466

The tax payable on the balance sheet (TNOK 8,197) differs from the tax payable in the profit and loss account due to payments in advance.

The tax charge deviates from the amount that would have applied if the nominal tax rate in the various countries had been used. The difference can be explained as follows:

(Amounts in NOK 1000)

	2009	2008

Pre-tax profit/loss	-93 960	17 768
Tax calculated at the tax rate of the various countries	-10 605	4746
Non-taxable income	0	-608
Non-tax-deductible expenses	1 055	5 280
Utilisation and previously recognised tax loss carry forward	-1 399	-4 952
Taxes	-10 949	4 466

The weighted average tax rate was 11.7 per cent (2008: 25.1 per cent).

The following tax rates apply in the various countries in 2009:

Norway 28 per cent, Sweden 26.2 per cent, Denmark 25 per cent, Finland 26 per cent, Germany 39 per cent, UK 28 per cent, Italy 27.5 per cent, Spain 30 per cent and Romania 16 per cent.

NOTES TO THE BLOM GROUP ACCOUNTS | 51

NOTE 10: OTHER CURRENT LIABILITIES

(Amounts in NOK 1000)

	2009	2008
Prepayments	10 401	8 939
Holiday pay etc. for employees	25 340	25 150
Other current liabilities	21 842	99 693
	57 583	133 782

NOTE 11: CHARGES ON ASSETS AND SECURITY

Security totalling NOK 150.0 million in machinery and plant, NOK 150.0 million in receivables from customers and NOK 150.0 million in stocks has been furnished for the parent company's debt to Skandinaviska Enskilda Banken as at 31 December 2009.

As security for the bond loan of NOK 300 million the parent company has pledged as collateral its shares in Blom Data AS, BlomInfo A/S, Blom Geomatics AS, Blom Kartta OY, Blom Deutschland GmbH, Blom Aerofilms Ltd, Blom Sweden AB, Blom Environmental Coastal Surveys AB, Blom CGR and Blom Sistemas Geoespeciales S.p.A. The financial conditions are described in Note 8.

In addition, the subsidiaries, Blom Data AS, Blom Geomatics AS, BlomInfo A/S, Blom Aerofilms Ltd, Blom CGR and Blom Sistemas Geoespeciales S.p.A. have guaranteed the parent company's loan covenants linked to the bond.

Bank guarantees totalling NOK 54.8 million have been furnished by the company, primarily in connection with the execution of projects.

Blom ASA has furnished certain guarantees for Scan Subsea ASA. Blom ASA has guaranteed that Scan Subsea ASA will pay its rent in connection with the sale of the real estate in Tønsberg. Scan Subsea ASA was acquired in 2007 by the NYSE listed company Parker Hannifin Corporation.

NOTE 12: PAYROLL COSTS

(Amounts in NOK 1000)

	2009	2008
Wages and salaries	230 146	222 249
Employer's share of National Insurance contributions	45 724	37 393
Pension costs	8 788	7 669
Other benefits	12 896	6 614
	297 554	273 925

The pension costs include both defined benefit and defined contribution schemes.

The group had 1,188 employees as at 31 December 2008.

NOTES TO THE BLOM GROUP ACCOUNTS

NOTE 13: FINANCIAL INCOME AND EXPENSES

(Amounts in NOK 1000)

	2009	2008
Interest and other financial income	3 377	10 446
Interest and other financial expenses	-34 995	-28 129
Net foreign currency gains/(losses)	-7943	7 483
	-39 562	-10 200

NOTE 14: FINANCIAL LEASING AGREEMENTS

TANGIBLE FIXED ASSETS ACQUIRED THROUGH FINANCIAL LEASING AGREEMENTS INCLUDE THE FOLLOWING:

(Amounts in NOK 1000)

	2009	2008
Historical cost recorded on balance sheet	111 637	124 405
Accumulated depreciation	-70 891	-60 800
Book value as at 31 December 2009	40 747	63 605

THE PRESENT VALUES OF OBLIGATIONS RELATED TO FINANCIAL LEASING AGREEMENTS ARE AS FOLLOW:

(Amounts in NOK 1000)

	2009	2008
Maturity within 1 year	15 600	20 380
Maturity between 1 and 5 years	18 821	26 664
Maturity later than 5 years	0	0
	34 421	47 044

The financial leasing agreements encompass the leasing of aircraft, sensors, vehicles and IT-related equipment. The duration of the agreements is from 3 to 5 years. The leasing agreements have an adjustable interest rate.

NOTES TO THE BLOM GROUP ACCOUNTS | 53

NOTE 15: OPERATING LEASING AGREEMENTS

MINIMUM FUTURE LEASING PAYMENTS RELATED TO OPERATING LEASING AGREEMENTS ARE AS FOLLOW:

(Amounts in NOK 1000)

	2009	2008
Maturity within 1 year	21 307	32 281
Maturity between 1 and 5 years	35 696	44 837
Maturity later than 5 years	981	4 195
	57 983	81 313

The operating leasing agreements encompass the leasing of vehicles, offices, aircraft and IT-related equipment.

NOTES TO THE BLOM GROUP ACCOUNTS

NOTE 16: SHARE CAPITAL AND SHAREHOLDER INFORMATION

The share capital of Blom ASA as at 31 December 2009 was NOK 4,170,063.60, divided into 41,700,636 shares, each with a nominal value of NOK 0.10. There is one class of shares, and all of the shares are freely transferable.

There has been no increase in the share capital in 2009. There have been no significant changes in the shareholder composition during the period after 31 December 2009.

TREASURY SHARES

At the company's Annual General Meeting on 30 April 2009 the Board was authorised to acquire the company's own shares for a maximum of NOK 417,000 according to the nominal value of the shares. Shares may only be purchased at a price between a minimum of the nominal value and maximum of NOK 100 per share in accordance with the authorisation. The authorisation remains in force until the next Annual General Meeting and is a continuation of an earlier authorisation.

No treasury shares were bought or sold in 2009. Treasury share holdings as at 31 December 2009 totalled 1,100.000, which corresponds to 2.64 per cent of the total number of outstanding shares. The average price for the shares is NOK 44.25.

OWNERSHIP STRUCTURE

The number of shareholders as at 31 December 2009 was 2,742, compared with 2,378 shareholders as at 31 December 2008. Foreign shareholders have a 46.4 per cent ownership interest in the company, compared with 53.1 per cent as at 31 December 2008.

BLOM'S 20 LARGEST SHAREHOLDERS AS AT 31 DECEMBER 2009:

(Amounts in NOK 1000)

		Number	%
Shareholder
1	GOLDMAN SACHS & CO - SECURITY CLIENT SEGR	NOM	12 606 901
2	FINANSPARTNER INVEST AS		3 843 499
3	GOLDMAN SACHS INT. - SECURITY CLIENT SEGR	NOM	1 799 000
4	BLOM ASA (own shares)		1 100 000
5	BJØRNSTAD & JENDAL A/S		937 600
6	MP PENSJON		826 524
7	BANK OF NEW YORK MEL S/A EQITY TRI-PART		611 252
8	EUROCLEAR BANK S.A./25% CLIENTS	NOM	610 051
9	CACEIS BANK S/A NON TREATY ACCOUNT		461 600
10	SCANDIC AMERICAN EUROPEAN BRANCH		416 000
11	EIENDOMSUTVIKLING KRISTIANSAND AS		400 000
12	VPF NORDEA VEKST JPMORGAN EUROPE LTD.		393 900
13	MORGAN STANLEY & CO S/A MSCO CLIENT EQUITY	NOM	318 819
14	BNP PARIBAS SECS SER S/A SPANICH RESIDENT	NOM	306 545
15	AGAT AS		292 000
16	VPF NORDEA SMB C/O JPMORGAN EUROPE		273 300
17	NORDNET BANK AB	NOM	213 761
18	AVANSE NORGE (II) VPF		204 000
19	ØYEHOL OLE KRISTIAN		200 000
20	KARLSEN, KJELL AGNAR		199 000
	Total 20 largest shareholders		26 013 752
	Others		15 686 884
	Total		41 700 636

NOTES TO THE BLOM GROUP ACCOUNTS | 55

Finanspartner Invest AS, a close associate of Dirk Blaauw, sold 1,714,286 shares in the company on 4 January 2010. Finanspartner Invest AS emerges as the owner of 2,129,213 shares after the sale. A total of 1,384,533 of these shares are in accordance with an agreement with Hirsti Invest AS, a close associate of Gunnar Hirsti, and registered in the Norwegian Central Securities Depository (VPS) account of Finanspartner Invest AS as security for external debt in Finanspartner Invest AS.

SHARES HELD BY MEMBERS OF THE BOARD OF DIRECTORS AND CEO:

		No. of shares as at 31/12/09
Gunnar Hirsti	Board Chairman	0
Dirk Blaauw	CEO and Board Member	0
Per Kyllingstad	Board Member	0
Bente Loe	Board Member	7 500
Brita Eilertsen	Board Member	0
Finanspartner Invest AS Close associate of Dirk Blaauw and Gunnar Hirsti		3 843 499

NOTE 17: EARNINGS AND DILUTED EARNINGS PER SHARE

The earnings per share is calculated by dividing the net profit / loss for the year with the weighted average of outstanding ordinary shares throughout the year, less the company's own shares.

(Amounts in NOK 1000)

	2008	2008
Net profit/loss for the year (in NOK 1 000)	-83 013	13 302
Weighted average of number of outstanding shares (1000s)	40 600	40 600
Earnings and diluted earnings per share (NOK)	-2,04	0,33

There are no financial instruments that can dilute the shares.

NOTE 18: KEY EXECUTIVES

Pursuant to Section 6-16a of the Public Limited Companies Act, the board of directors' shall prepare a separate statement concerning the adoption of salaries and other remuneration to the CEO and executive management. Pursuant to Section 5-6 of the Public Limited Companies Act a consultative vote shall be held on the Board of Directors' guidelines for setting the salary level for the next accounting year. If the guidelines include share-based payment schemes, then such schemes shall also be approved by the General Meeting. The Board of Directors proposes the following guidelines, which are to be subjected to a consultative vote at the General Meeting in 2010:

DECLARATION CONCERNING STIPULATION OF SALARY AND OTHER REMUNERATION TO KEY EXECUTIVES

Guidelines for 2010

In addition to their base salary, key executives can receive a variable bonus of up to 30 per cent of the individual's gross annual salary. The size of the bonus paid to the individual employees will be dependent in part on the achievement of individual targets and

NOTES TO THE BLOM GROUP ACCOUNTS

in part on the performance of the group. The targets for the CEO are set by the Board of Directors. The CEO has set the targets for key executives.

Key executives receive free telephone, mobile phone, Internet, newspapers and canteen as benefits in kind. Key executives in Norway are members of the company's defined contribution scheme in the same manner as other employees. The retirement age for key executives follows the local legislation. If employment is terminated the individual employees are entitled to a salary for a maximum of 12 months after the termination of employment.

Blom believes that the company's performance-based bonus agreements with key executives have a motivating effect and are in the best interest of the company and its shareholders.

The company does not currently have any agreements with key employees concerning the allocation of shares, subscription rights, options and other forms of remuneration linked to shares or the performance of the company's share or shares of other companies within the group. The Board of Directors will, however, continuously consider incentive schemes that are appropriate to secure a qualified management for the company, including the use of various share option schemes.

Implemented executive remuneration policy for 2009

The remuneration of key executives in 2009 has been in accordance with the declaration that was presented to the General Meeting in 2009.

KEY EXECUTIVES

Salary and other remunerations to key executives in 2009:

Name	Position	Base salary	Bonus earned	Other taxable benefits

		NOK	NOK	NOK
Dirk Blaauw	Board Chairman until 30 June	900 000	0	110 271
Dirk Blaauw	CEO from 01/07	1 500 000	0	110 271
Håkon Jacobsen	CEO until 30/06 / COO until 31/12	2 750 000	0	134 894
Jan Erik Braathen	CFO until 30/09 / Controller until 31/12	1 036 920	0	16 894
Lars Bakklund	CFO from 01/10	462 500	0	0
Nils Karbø	CTO	1 245 626	0	207 421
Gunnar Hirsti	Board Chairman from 01/07	300 000	0	60 000

NOK 1,468,526 was charged against income in 2009 for the early retirement scheme for CEO Dirk Blaauw and the total pension obligation was NOK 3,366,300. The pension rights apply from age 62 and the assumptions made for the pension obligation are a return of 0.0 per cent, discount rate of 4.40 per cent, expected National Insurance basic amount (G) adjustment of 4.0 per cent and wage inflation of 4.25 per cent.

Salary and other remunerations to key executives in 2008:

Name	Position	Base salary	Bonus earned	Other taxable benefits

		NOK	NOK	NOK
Dirk Blaauw	CEO until 01.04.08	750 000	0	68 405
Dirk Blaauw	Board Chairman from 01.04.08	1 350 000	0	136 811
Håkon Jacobsen	CEO from 01.04.08	2 062 500	0	102 750
Jan Erik Braathen	CFO	1 000 000	0	19 117
Nils Karbø	CTO	1 150 000	0	159 530

Severance remuneration totalling NOK 5.0 million, which corresponds to 18 months' salary, was paid to the former CEO Dirk Blaauw. NOK 300,433 was charged against income in 2008 for the early retirement scheme for the former CEO Dirk Blaauw, and the total pension obligation was NOK 1,897,774. The pension rights apply from age 62, and the assumptions made for the pension obligation are a return of 5.8 per cent, discount rate of 4.3 per cent, expected National Insurance basic amount (G) adjustment of 4.25 per cent and wage inflation of 4.5 per cent.

NOTES TO THE BLOM GROUP ACCOUNTS | 57

BOARD OF DIRECTORS

Remuneration to the Board of Directors paid for the period from 30 April 2008 to 30 April 2009:

(Amounts in NOK 1000)

	Blom ASA
Dirk Blaauw	450 000
Gunnar Hirsti	225 000
Per Kyllingstad	225 000
Bente Loe	225 000
Brita Eilertsen	225 000
Total	1 350 000

The following provisions have been made for remuneration of the Board of Directors for the period from 1 May 2009 to 29 April 2010 (Annual General Meeting):

(Amounts in NOK 1000)

	Blom ASA
Gunnar Hirsti	450 000
Dirk Blauuw	225 000
Per Kyllingstad	225 000
Bente Loe	225 000
Brita Eilertsen	225 000
Total	1 350 000

NOTE 19: AUDITOR

Auditor's fees of TNOK 2,025 were charged against income in the group for 2009 (2008: TNOK 1,849). In addition, there are fees totalling TNOK 37 (2008: 0) for other verification services (including declarations associated with share capital increases and agreed audit procedures), as well as fees totalling TNOK 241 (2008: TNOK 408) for tax consulting (including technical assistance with tax papers and advice on tax matters). A total of TNOK 771 (2008: TNOK 390) was charged against income for other non-auditing services. The amounts quoted are exclusive of value-added tax.

NOTES TO THE BLOM GROUP ACCOUNTS

NOTE 20: FAIR VALUE OF ASSETS AND LIABILITIES, AS WELL AS FINANCIAL ASSETS BY CATEGORY

With the exception of loans with an interest-free period and grants in Spain for 2009, there is no difference between the fair value and book value of assets and liabilities.

The fair value of loans with an interest-free period provided by the Spanish authorities of NOK 23 million and grants of NOK 8 million from the Spanish authorities totalled NOK 19 million as at 31 December 2009, while the corresponding figure as at 31 December 2008 was NOK 23 million.

(Amounts in NOK 1000)

FINANCIAL INSTRUMENTS BY CATEGORY:

	2009	2009	2009

Assets	Loans and receivables	Non-financial assets	Total
Long-term fixed asset investments	5 884	4 369	10 253
Receivables from customers	240 252	0	240 252
Other current receivables	21 839	13 565	35 404
Cash and cash equivalents	164 873	0	164 873
Total	432 848	17 934	450 782

Liabilities	Financial liabilities at amortised cost	Non-financial liabilities	Total
Long-term liabilities	356 366	0	356 366
Overdraft facilities	89 824	0	89 824
Other interest-bearing short-term liabilities	31 031	0	31 031
Payables to suppliers	104 798	0	104 798
Other current liabilities	47 182	10 401	57 583
Total	629 201	10 401	599 558

NOTES TO THE BLOM GROUP ACCOUNTS | 59

(Amounts in NOK 1000)

	2008	2008	2008

Assets	Loans and reciecables	Non-financial assets	Total
Long-term fixed asset investments	6 725	5 152	11 877
Receivables from customers	353 019	0	353 019
Other current receivables	23 796	12 523	36 319
Cash and cash equivalents	76 486	0	76 486
Total	460 022	17 675	477 697

Liabilities	Financial liabilities at amortised cost	Non-financial liabilities	Total
Long-term liabilities	232 620	0	232 620
Overdraft facilities	75 101	0	75 101
Other interest-bearing short-term liabilities	87 470	0	87 470
Payables to suppliers	80 579	0	80 579
Other current liabilities	119 389	9 994	133 782
Total	599 558	9 994	609 552

NOTE 21: FINANCIAL RISK

The group's activities entail different types of financial risk: market risk (foreign currency and interest rates), credit risk, liquidity risk and risk associated with asset management. The group's risk management is provided by a central financial function in close cooperation with the subsidiaries. The purpose of risk management is to minimise the potential negative effects of the group's financial results.

Market risk

a) Foreign currency risk

In 2009 the net foreign currency loss in the net financial items totalled NOK 8 million.

NOTES TO THE BLOM GROUP ACCOUNTS

The company has investments in foreign subsidiaries, whose net assets and goodwill are exposed to a foreign currency translation risk. The translation difference for the equity as at 31 December 2009 totalled NOK -74 million. This is a result of the falling exchange rates throughout 2009 and reduces the translation difference as at 31 December 2008, which was NOK 67 million, when the EUR exchange rate, for example, rose sharply towards the end of the year.

The Euro rate as at 31 December 2009 was 8.32 against NOK, while the average of the monthly average rates that is used to translate the profit and loss account was 8.73 against NOK.

b) Interest rate risk

The group's interest-bearing assets are cash and cash equivalents, and the group's profit and cash flow from operations are in general independent of changes in market interest rates.

The group has interest-bearing liabilities as described in Note 8. The interest-bearing debt has adjustable or fixed interest rates that are shorter than three months at any given time. Since the debt can be repaid at the points in time when the interest rate is adjusted, the difference between the fair value and book value will be small and insignificant.

The group's interest rate risk is associated with long-term loans, financial leasing and overdraft facilities. All of the company's interest-bearing debt is subject to adjustable interest rates. The company has not made use of interest rate swaps or other financial instruments. A change in the interest rate level by 1 per cent will entail a change in the interest costs of around NOK 4.7 million.

Credit risk

The company has not entered into any transactions that involve financial derivatives or other financial instruments. The counterpart risk in financial transactions is, therefore, non-existent.

The credit risk in connection with sales to customers is managed in the local subsidiaries and at the group level for particularly large projects. The credit risk will be monitored locally with central monitoring of the local subsidiary. The company has guidelines for new contracts that focus on various elements, all of which shall contribute to the customer paying the company as quickly as possible.

The company's customers in BGES are primarily municipalities or government agencies, or companies or institutions where municipalities or government agencies have a dominant influence. The company considers the risk of potential future losses from this type of customer to be low.

During the last two years in BIS the company has acquired more customers who are private companies in handheld terminals, web services and navigation. These customers have by definition a higher probability for potential future losses than the company's original customer group. As at 31 December 2009 the company has provisions of NOK 19 million for potential future losses on specific receivables from customers. These provisions have primarily been earmarked for specific private customers exposed to economic downturn who have acquired services from Blom's existing database of oblique images. The company has earmarked provisions for specific customers and evaluated the size of the potential loss.

The company is focusing on the reduction of outstanding receivables from customers. The age distribution of the group's receivables from customers is specified in Note 4. The company's BGES segment is expected to have a higher percentage of receivables from customers and work in progress compared with the BIS segment. This is due to the duration of the projects and the customers' delivery terms in BGES.

Receivables from customers (invoiced to customers) and work in progress (not yet invoiced to customers) totalled NOK 501 million as at 31 December 2009, compared with NOK 588 million as at 31 December 2008, i.e. a reduction of 14.8 per cent.

Liquidity risk

The company's management of liquidity risk entails maintenance of adequate liquid reserves and credit facilities. The central management team and the local managers of subsidiaries monitor the group's liquid resources and credit facilities through revolving forecasts based on the expected cash flow.

The company considers its liquidity to be satisfactory. The company had NOK 165 million in liquid reserves at the end of the year as at 31 December 2009, compared with NOK 76 million at the end of the previous year. The group has overdraft facilities and factoring agreements in Blom ASA, Blom CGR, Blom Sistemas Geoespaciales and Blom Romania, which are renewed every year. These overdraft facilities totalled NOK 166 million as at 31 December 2009, and cash and facilities combined totalled NOK 241 million.

The maturity structure of the group's long-term debt (excluding deferred tax liabilities) and short-term interest-bearing debt is specified in Note 8.

NOTES TO THE BLOM GROUP ACCOUNTS

In addition, the company has current liabilities of NOK 57.6 million as at 31 December 2009, as specified in Note 9.

The group has current assets excluding cash and cash equivalents of NOK 540 million as at 31 December 2009.

The company has not entered into any financial instruments and does thus not have any liquidity risk due to financial instruments.

Risk associated with asset management

The company has managed its surplus liquidity primarily by depositing it with its main banks or in short bond funds with a low credit risk. The company considers this counterparty risk to be relatively limited.

NOTE 22: ASSOCIATED COMPANIES

The group invested NOK 40 million in the Portuguese company NDrive in 2008 and owns 20 per cent of the company. NDrive owns a navigation core for navigators and distributes navigators on the European market. The acquisition was completed in December 2008, and the share of the profit/loss for 2008 is considered to be insignificant. Book value after conversion of loans was NOK 45.8 million. The group's share of the profit / loss for 2009 was NOK -0.5 million, which results in book value per 31.12.09 of NOK 45.3 million.

NOTE 23: SUBSIDIARIES

THE FOLLOWING DIRECTLY AND INDIRECTLY OWNED SUBSIDIARIES ARE INCLUDED IN THE CONSOLIDATED ACCOUNTS:

Blom Data AS, Oslo (100 %)
BlomInfo A/S, Denmark (100 %)
Blom Kartta Oy, Finland (100 %)
FMKaart OU, Estonia (100 %)
Blom Geomatics AS, Oslo (100 %)
Blom Romania S.R.L, Romania (100 %)
BlomInfo SP z.o.o., Poland (100 %)
PT. Blom Nusantara, Indonesia (90 %)
Blom SWE AB, Sweden (100 %)
Blom International AB, Sweden (100 %)
BlomInfo Ukraine, Ukraine (51 %)
Blom Deutschland GmbH, Germany (100 %)
Blom Aerofilms Ltd, England (100 %)
Blom Sweden AB, Sweden (100 %)
Blom CGR S.p.A., Italy (100 %)
Consorzio Compagnie Aeronautiche S.r.l., Italy (80 %)
Compagnia Aeronautica Emiliana S.r.l., Italy (50 %)
Blom Sistemas Geoespaciales S.L.U, Spain (100 %)
Trabajos Aereos S.A., Spain (100 %)
Blom Portugal, Portugal (100 %)
Blom Environmental and Coastal Survey AB, Sweden (100 %)
Î.C.S. Blom S.R.L, Moldova (100 %)
Blom Bulgaria EOOD, Bulgaria (100 %)

NOTES TO THE BLOM GROUP ACCOUNTS

NOTE 24: IMPORTANT ACCOUNTING ESTIMATES AND DISCRETIONARY ASSESSMENTS

Estimates and discretionary assessments are evaluated continuously and based on historical experience and other factors, including expectations of future events that are regarded as probable under the current circumstances. The group prepares estimates and makes assumptions concerning the future. The accounting estimates that are made as a result of this will rarely coincide in full with the final outcome. The most important valuation items for Blom ASA are discussed below.

Goodwill

The group performs annual tests to assess the value of goodwill (Note 2). The recoverable amount from cash flow generating units is determined by calculation of the utility value. These calculations require the use of estimates.

If the required rate of return is increased by 2 percentage points to 11.5 per cent, then the testing of goodwill entail a need for write-down of NOK 53.5 million.

If a reduction in the number of credit days by 10 in BGES in both 2010 and 2011 does not take place, the testing of goodwill entail a need for a write-down of NOK 56 million.

If the growth in the terminal value from 2014 and beyond is reduced to 0 per cent, then the testing of goodwill will entail a need for write-down of NOK 22.5 million.

Deferred tax assets

The group is taxed for income in many different jurisdictions. The use of discretion is required to determine the income tax in all the countries combined in the consolidated accounts. For many transactions and calculations there will be uncertainty related to the ultimate tax liability. The group recognises deferred tax assets on its balance sheet insofar as it is probable that there will be taxable income in the future.

The tax loss carryforward represents most of the deferred tax assets. The company has recognised the tax effect of the tax loss carryforward of NOK 173 million on the balance sheet and NOK 57 million of this amount is not time limited. If the company does not manage to utilise the time limited tax loss carryforward, the company's deferred tax assets would be reduced by the tax effect of a tax loss carryforward of NOK 112 million, i.e. around NOK 33 million.

Recognition of project income

Recognition of project income shall be in accordance with the percentage of completion method. This method requires that the group make discretionary assessments concerning what percentage of the total project has been delivered on the date of the balance sheet.

The company has recognised work in progress of NOK 261 million as at 31 December 2009. Work in progress is recognised as revenue, but not invoiced to the customer as at 31 December 2009. If the percentage of services delivered on the date of the balance sheet in relation to the total services delivered was to deviate 10 per cent from the management's estimate, the revenue for the year would change by NOK 26 million

Provisions for receivables

The provisions for receivables are based on the management's discretionary assessment of potential future losses on receivables from customers. The company's customers are primarily municipalities or government agencies, or companies or institutions where municipalities or government agencies have a dominant influence. The company considers the risk of potential future losses from this type of customer to be very low.

During the last two years the company has also acquired more customers who are private companies in handheld terminals, web services and navigation. These customers have by definition a higher probability for potential future losses than the company's original customer group. These customers represent around NOK 41 million in receivables from customers as at 31 December 2009.

NOTES TO THE BLOM GROUP ACCOUNTS | 63

As at 31 December 2009 the company has provisions of NOK 19 million for potential future losses on specific receivables from customers. These provisions have primarily been earmarked for specific private customers who have acquired services from Blom's existing database of oblique images. The company has earmarked provisions for specific customers and evaluated the size of the potential loss. If any losses upon realisation were to deviate 10 per cent from the management's estimate, the realised losses in relation to the provisions would change by NOK 2 million.

NOTE 25: ADJUSTMENTS IN SPAIN

Accounting irregularities were identified in the Spanish subsidiary during finalisation of the accounts for 2009. The investigations carried out show that it primarily involved the overreporting of margins for ongoing projects. The following adjustments have therefore been made in the accounts: Revenues in the profit and loss account were reduced by NOK 45 million in 2008. Revenues for 2009 were reduced by NOK 29 million compared with the 1st to 3rd quarters. The reductions have entailed changes to work in progress and receivables from customers in the balance sheet. The effect of the findings that refer to 2008 are considered significant, and the opening equity for 2009 was adjusted therefore by NOK 31.9 million in total (effect after tax). The earnings per share for 2008 have been reduced from 1.11 to 0.33.

NOTE 26: EVENTS AFTER THE DATE OF THE BALANCE SHEET

No events have taken place after the date of the balance sheet that are of significance to the accounts for 2009.

TECHNOLOGY

BLOM ASA ACCOUNTS

BLOM ASA ACCOUNTS 65

PROFIT AND LOSS ACCOUNT – BLOM ASA

(Amounts in NOK 1000)

	Note	2009	2008

Operating revenues	1	20 600	23 850
Salaries and personnel costs	2	21 805	22 403
Ordinary depreciation	3	134	47
Other operating and administrative costs	4	13 272	10 773
Operating expenses		35 211	33 223

Operating profit/loss		-14 611	-9 373
Financial income/expenses		-12 498	31 733
Group contributions received		31 482	24 771
Write-down of shares in subsidiaries		-80 000	0
Net financial items		-61 016	56 504

Profit/loss before taxes		-75 626	47 131
Income taxes	10	-1 258	-13 222
Net profit/loss for the year		-76 884	33 909

Allocation of profit/loss
Transferred to/from other reserves		76 884	-33 909
Total allocations		76 884	-33 909

BLOM ASA ACCOUNTS

BALANCE SHEET – BLOM ASA

ASSETS

(Amounts in NOK 1000)

	Note	2009	2008
Intangible fixed assets	10	4 271	5 530
Tangible fixed assets	3	162	210
Shares in subsidiaries	14	447 079	406 529
Pension assets	7	0	283
Investments in associated companies		45 811	45 811
Long-term receivables	15	70 174	89 729
Total fixed asset investments		563 063	542 352
Total fixed assets		567 497	548 091
Current receivables	5/15	343 183	413 919
Cash and cash equivalents	6	90 599	30 944
Total current assets		433 782	444 864
TOTAL ASSETS		1 001 279	992 955

BLOM ASA ACCOUNTS | 67

BALANCE SHEET – BLOM ASA

EQUITY AND LIABILITIES

(Amounts in NOK 1000)

	Note	2009	2008

Equity
Paid in share capital
Nominal share capital		4 170	4 170
Treasury shares		-110	-110
Share premium account		129 581	129 581

Retained earnings
Other reserves		549 007	625 973
Total equity	8	682 648	759 614
Pension obligations	7	4 397	3 191
Other long-term liabilities	9	288 735	149 579
Total long-term liabilities		293 132	152 770
Payables to suppliers		1 377	3 358
Unpaid government taxes		1 247	930
Other current liabilities	11/15	22 875	76 283
Total current liabilities		25 499	80 571

TOTAL EQUITY AND LIABILITIES		1 001 279	992 955

Oslo, 24 March 2010

Gunnar Hirsti
Board Chairman

Per Kyllingstad
Board Member

Bente Loe
Board Member

Brita Eilertsen
Board Member

Dirk Blaauw
CEO and Board Member

BLOM ASA ACCOUNTS

CASH FLOW STATEMENT - BLOM ASA

INDIRECT MODEL

(Amounts in NOK 1000)

		2009	2008

CASH FLOWS FROM OPERATIONAL ACTIVITIES
	Profit/loss before taxes	-75 626	47 131
+	Depreciation and amortisation	80 134	47
+/-	Group contributions received	-31 482	-24 771
+/-	Change in current receivables	-11 956	-142 978
+/-	Change in current liabilities	-5 510	-6 993
+/-	Change in other accruals	16 914	-20 454
A =	Net cash flow from operational activities	-27 527	-148 018

CASH FLOW FROM INVESTMENT ACTIVITIES
-	Payments for purchase of operating assets	-87	-182
-	Payments for acquisition of companies	0	-40 050
B =	Net cash flow from investment activities	-87	-40 232

CASH FLOW FROM FINANCING ACTIVITIES
+	New long-term debt	287 269	0
-	Payments on long-term debt and loans	-200 000	0
-	Net payments for purchase of treasury shares	0	-48 672
C =	Net cash flow from financing activities	87 269	-48 672

	A+B+C Net change in cash and cash equivalents	59 655	-236 922
+	Cash and cash equivalents	30 944	267 866
=	Cash and cash equivalents	90 599	30 944

NOTES TO THE BLOM ASA ACCOUNTS

NOTES TO THE ACCOUNTS

GENERAL INFORMATION

The accounts for Blom ASA have been prepared in accordance with the Accounting Act of 1998 and the generally accepted accounting principles in Norway (NGAAP). In cases where the notes for the parent company are significantly different from the notes for the group, they are listed below. Reference is made otherwise to the note information for the group.

FOREIGN CURRENCY

Transactions involving foreign currencies are translated into the functional currency using the exchange rates that are in effect at the time of the transactions. Gains and losses that arise from the payment of such transactions and the translation of monetary items in foreign currencies at the rates in effect on the date of the balance sheet are recognised in the profit and loss account. The company uses Norwegian kroner (NOK) as both its functional and presentation currency.

SUBSIDIARIES

Investments in subsidiaries are valued in accordance with the cost method and written down if the value in the balance sheet exceeds the recoverable amount. Write-downs are reversed if the basis for the write-down no longer exists. The group contribution received from subsidiaries is recognised as income under financial income. The net group contribution paid is added to the acquisition cost for investments in subsidiaries.

TANGIBLE FIXED ASSETS

Tangible fixed assets are recorded in the accounts at historical cost less accumulated depreciation and write-downs. Depreciation is calculated based on the linear method so that the cost price of the fixed asset is depreciated to the residual value over the expected life of the asset.

LOANS

Loans are recorded at their fair value when they are disbursed, less any transaction costs. In subsequent periods, loans are recorded at their amortised cost, as calculated by means of the effective interest rate method. The difference between the loan amount disbursed (less transaction costs) and the redemption value are recognised in the profit and loss account over the term of the loan. Loans are classified as current liabilities unless there is an unconditional right to postpone payments of the debt by more than 12 months from the date of the balance sheet.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents consist of cash, bank deposits and other short-term, readily negotiable investments. Utilised overdraft facilities are included under current liabilities on the balance sheet.

TAXES

The tax charge in the profit and loss account encompasses the tax payable for the period and the change in deferred tax. Deferred tax is calculated at the rate of 28 per cent on the basis of temporary differences between the financial accounting and tax-related values, in addition to any tax loss carryforward at the end of the accounting year. Tax increasing or reducing temporary differences that may reverse during the same period are offset. Deferred tax and tax assets that can be recorded on the balance sheet are recorded on a net basis on the balance sheet. Deferred tax assets are recognised on the balance sheet provided future taxable income is probable and the temporary differences can be offset against this income.

PENSION SCHEMES

The company has both defined benefit and defined contribution schemes. The contributions are recorded as a payroll cost in the accounts as they fall due. Contributions paid in advance are recognised as an asset in the accounts if the contribution can be refunded or reduce future payments. The liability recorded on the balance sheet relating to defined benefit plans is the present value of the defined benefits on the date of the balance sheet less the fair value of the pension assets, adjusted for unrecognised estimate deviations and costs relating to pension benefits earned from prior periods. Pension payments an employee will receive on retirement are normally dependent on one or more factors such as age, years of service and salary level. The pension obligation is calculated annually by an independent actuary on the basis of a linear model. The present value of the defined benefits is determined by discounting the estimated future payments at the interest rate for a bond issued by a company with high creditworthiness in the same currency as the benefits will be paid with a term that is approximately the same as the term of the associated pension obligation.

NOTES TO THE BLOM ASA ACCOUNTS | 71

NOTE 1: OPERATING REVENUES

The operating revenues consist of fees for services the parent company performs for companies in the group.

OPERATING REVENUES ARE ALLOCATED TO BUSINESS AREAS AND GEOGRAPHIC AREAS:

(Amounts in NOK 1000)

	2009	2008

Business areas
Information Services	7 000	9 700
Geo Engineering Services	13 600	14 150
	20 600	23 850

Geographic areas
Norway	6 100	4 300
Other Nordic countries	3 500	3 150
Other Europe	11 000	16 400
	20 600	23 850

NOTE 2: SALARIES

(Amounts in NOK 1000)

	2009	2008
Salaries	15 617	17 079
Employer's share of National Insurance contributions	2 260	3 520
Pension costs	2 415	1 523
Other benefits	1 513	273
	21 805	22 403

Pension costs include both defined benefit and defined contribution schemes. In 2009 the average number of man-years was 10.

NOTE 3: TANGIBLE FIXED ASSETS

(Amounts in NOK 1000)

	2009	2008
Historical cost as at 1 January	303	102
Additions during the year	87	202
Accumulated depreciation as at 31 December	228	94
Book value as at 31.12.	162	210
Depreciation for the year	134	47

NOTES TO THE BLOM ASA ACCOUNTS

NOTE 4: OTHER OPERATING AND ADMINISTRATIVE EXPENSES

(Amounts in NOK 1000)

	2009	2008
Travel expenses	1 619	1 686
Rent and other office expenses	1 301	1 931
External services	7 755	3 628
Other operating and administrative costs	2 597	3 528
Total other operating and administrative expenses	13 272	10 773

NOTE 5: CURRENT RECEIVABLES

(Amounts in NOK 1000)

	2000	2008
Intragroup receivables (Note 15)	335 189	409 218
Accrual items	554	155
Other current receivables	7 440	4 546
Total current receivables	343 183	413 919

The intragroup receivables as at 31 December 2009 include the subsidiaries' overdrafts on accounts that are part of the company's cash pooling system and group contributions.

The parent company had NOK 0 in bad debts in 2009 and 2008.

NOTE 6: CASH AND CASH EQUIVALENTS

(Amounts in NOK 1000)

	2009	2008
Cash and bank deposits	79 664	29 995
Restricted bank deposits	935	949
Short-term bank investments	10 000	0
Total cash and cash equivalents	90 599	30 944

Blom ASA has a cash pooling system with Skandinaviska Enskilda Banken (SEB) that covers most of the group's subsidiaries. Cash and bank deposits include the subsidiaries' net deposits in accounts that are part of the company's corporate account system. The company has an overdraft facility of NOK 30.0 million linked to the account system. This facility was not utilised as at 31 December 2009. The restricted bank deposits include the employees' tax withholdings. Blom ASA had NOK 10 million placed with the savings bank Rygge-Våler Sparebank as at 31 December 2009.

NOTES TO THE BLOM ASA ACCOUNTS | 73

NOTE 7: PENSIONS

Blom ASA has a defined contribution pension scheme. This scheme covers 11 people.

In addition, the pension for two persons is covered by the company and charged against income.

(Amounts in NOK 1000)

	2009	2008
Net pension costs – guaranteed schemes	17	72
Net pension costs – non-guaranteed schemes	1 469	195
Total pension costs	1 486	267
Net pension obligations – guaranteed schemes	1 030	1 294
Net pension obligations – non-guaranteed schemes	3 367	1 897
Total pension obligations	4 397	3 191
Net pension costs – guaranteed schemes
Interest cost of pension obligations	144	192
Return on pension fund assets	-147	-147
Employer’s share of National Insurance contributions	20	27
Net pension costs	17	72
Net pension obligations
Accrued pension obligations as at 31 December	3 549	3 645
Estimated pension obligations as at 31 December	3 549	3 645
Plan assets (at market value) as at 31 December	2 760	2 759
Unrecognised effect of estimate deviations/plan changes	-259	-106
Employer’s share of National Insurance contributions	500	514
Net pension obligations	1 030	1 294
Net pension costs – non-guaranteed schemes
Present value of current year’s pension benefits earned	1 125	152
Interest cost of pension obligations	161	19
Employer’s share of National Insurance contributions	183	24
Net pension costs	1 469	195
Net pension obligations
Accrued pension obligations as at 31 December	2 882	1 151
Estimated pension obligations as at 31 December	2 882	1 151
Plan assets (at market value) as at 31 December
Unrecognised effect of estimate deviations/plan changes	77	584
Employer’s share of National Insurance contributions	406	162
Net pension obligations	3 366	1 897
ECONOMIC ASSUMPTIONS
Discount rate	4.4 %	4.3 %
Expected return on plan assets	5.6 %	6.3 %
Expected salary inflation	4.25 %	4.5 %
Expected pension increase	2.0-3.0%	2.0 %
Expected National Insurance basic amount (G) adjustment	4.0 %	4.3 %

The actuarial assumptions are based on the normal assumptions that are used by the insurance industry with regard to demographic factors.

NOTES TO THE BLOM ASA ACCOUNTS

NOTE 8: EQUITY

(Amounts in NOK 1000)

	Share capital	Treasury shares	Share premium account	Retained earnings	Equity
Equity as at 1 January 2009	4 170	-110	129 581	625 973	759 614
Net profit/loss for the year				-76 884	-76 884
Currency translation differences				-82	-82
Equity as at 31 December 2009	4 170	-110	129 581	549 007	682 648

NOTE 9: LONG-TERM LIABILITIES

The parent company redeemed a loan of NOK 200 million with SEB on 25 September 2009. A bond loan of NOK 300 million was raised. The loan matures on 25 September 2012. Security and financial covenants that are common for financing of this nature have been stipulated for the loan.

The covenants attached to the loan include maximum net interest bearing liabilities / EBITDA (excluding any intangible asset write-downs) of 3.50 and a minimum equity ratio of 40 per cent.

NOTES TO THE BLOM ASA ACCOUNTS | 75

NOTE 10: TAXES

(Amounts in NOK 1000)

	2009	2008

Calculation of deferred tax assets/liabilities

Temporary differences
Tangible fixed assets	-868	-1 021
Capital gain and loss account	16 562	20 703
Provisions in accordance with the generally accepted accounting principles	-813	-814
Pension fund assets/pension obligations	-4 397	-3 191
Net temporary differences	10 485	15 677
Tax loss carryforward	-25 739	-35 422
Basis for deferred tax assets	-15 254	-19 745

28% deferred tax assets	-4 271	-5 530
Deferred tax assets on balance sheet	-4 271	-5 530

Tax basis, change in deferred taxes and tax payable
Pre-tax profit/loss	-75 626	47 133
Permanent differences	118	89
Write-down of shares	80 000	0
Tax basis for current year	4 492	47 222

Change in temporary profit/loss differences	5 192	5 831
Basis for tax payable in the profit and loss account	9 683	53 053
Use of tax loss carryforward	9 683	-53 053

Tax breakdown
Tax payable	0	0
Change in deferred taxes	1 258	13 222
Tax charge (28% of basis for the tax for the year)	1 258	13 222

Tax loss carryforward is NOK 25.7 million.

NOTE 11: OTHER CURRENT LIABILITIES

(Amounts in NOK 1000)

	2009	2008
Intragroup liabilities (Note 15)	15 754	19 282
Seller's credit, acquired companies	810	1 298
First-year bank loan instalments	0	50 000
Interest on bank loans	593	1 055
Other current liabilities	5 718	4 648
Total other current liabilities	22 875	76 283

The intragroup liabilities include the subsidiaries' bank deposits in accounts that are part of the company's cash pooling system.

NOTES TO THE BLOM ASA ACCOUNTS

NOTE 12: CHARGES ON ASSETS AND SECURITY

Security has been pledged for the parent company's debt to Skandinaviska Enskilda Banken as at 31 December 2009 in machinery and plant totalling NOK 150.0 million, receivables from customers NOK 150.0 million and stocks totalling NOK 150.0 million.

Bank guarantees totalling NOK 54.8 million have been furnished by the company, primarily in connection with the execution of projects.

NOTE 13: AUDITOR FEES

TNOK 415 in auditor's fees has been charged against the income of Blom ASA for 2009 (2008: TNOK 400). In addition, there were tax consulting fees (including technical assistance with tax papers and guidance concerning tax questions) totalling TNOK 107 (2008: TNOK 98). A total of TNOK 559 (2008: TNOK 150) was charged against income for other non-auditing services. All amounts are exclusive of value-added tax.

NOTE 14: SUBSIDIARIES

(Amounts in NOK 1000)

	Company's share capital	No. of shares	Total nominal value	Cost price of shares	Balance sheet value

Company:
Blom Data AS	1 000 000	10 000	1 000 000	18 529	18 529
BlomInfo A/S	5 500 000	5 500	5 500 000	7 866	7 866
Blom Kartta OY	EUR 58 865,77	30	EUR 58 865,77	29 791	29 791
Blom Geomatics AS	1 000 000	10 000	1 000 000	11 622	11 622
Blom Deutschland GmbH	EUR 30 677,51	12	EUR 30 677,51	12 865	12 865
Blom Aerofilms Ltd	GBP 300	300	GBP 300	88 809	88 809
Blom Sweden AB	SEK 1000 000	10 000	SEK 1000 000	21 015	21 015
Blom CRG	EUR 1500 000	10 000	EUR 1500 000	157 014	157 014
Blom SWE AB	SEK 310 000	3 100	SEK 310 000	285	285
Blom Sist. Geo. S.L.U.	EUR 522 870	8 700	EUR 522 870	57 521	0
Blom Sist. Geo. S.L.U. - converted loan					98 071
Blom Environmental and Costal Survey AB	SEK 800 000	8 000	SEK 800 000	1 212	1 212
Total				406 529	447 079

All the companies are wholly owned.

NOTES TO THE BLOM ASA ACCOUNTS | 77

NOTE 15: CLOSE ASSOCIATES

The parent company does not have any closely related parties other than the subsidiaries and associated companies. Transactions between the parent company and subsidiaries are as follow:

(Amounts in NOK 1000)

	Current liabilities 31/12/09	P&L Sales	Current receivables 31/12/09	Long-term receivables 31/21/09
Blom Data AS	74	5 000	203 419	0
BlomInfo A/S	0	1 800	13 293	0
PT. Blom Nusantara	0	0	14	4 182
Blom Geomatics AS	5 613	1 100	22 553	0
Blom Kartta OY	748	900	7 896	0
Blom Deutschland GmbH	42	600	12 812	0
Blom Aerofilms Ltd	5 932	1 800	6 376	6 453
Blom Sweden AB	2413	800	0	0
Blom SWE AB	0	0	2 030	0
Blom CGR	232	4 000	4 059	0
Blom Sistemas Geoespaciales	700	3 300	40 599	59 539
Blom Environmental and Coastal Surveys AB	0	0	3 702	0
Blom Romania SRL	0	1300	18 435	0
Total	15 754	20 600	335 189	70 174

Current liabilities and receivables including the subsidiaries' deposits and utilised overdraft facilities in the company's corporate cash management system.

AUDITOR'S REPORT

PRICEWATERHOUSECOOPERS

PricewaterhouseCoopers AS
Postboks 748 Sentrum
NO-0106 Oslo
Telephone +47 95 26 00 00
Telefax +47 23 16 10 00

AUDITOR'S REPORT FOR 2009

We have audited the annual financial statements of Blom ASA as of 31 December 2009, showing a loss of NOK 76 884 000 for the parent company and a loss of NOK 83 012 000 for the group. We have also audited the information in the Board of Directors' report concerning the financial statements, the going concern assumption, and the proposal for the coverage of the loss. The annual financial statements comprise the financial statements of the parent company and the group. The financial statements of the parent company comprise the balance sheet, the statements of income, cash flows and the accompanying notes. The financial statements of the group comprise the balance sheet, the statements of comprehensive income and cash flows, the statement of changes in equity and the accompanying notes. The regulations of the Norwegian accounting act and accounting standards, principles and practices generally accepted in Norway have been applied in the preparation of the financial statements of the parent company. International Financial Reporting Standards as adopted by the EU have been applied in the preparation of the financial statements of the group. These financial statements are the responsibility of the Company's Board of Directors and Managing Director. Our responsibility is to express an opinion on these financial statements and on other information according to the requirements of the Norwegian Act on Auditing and Auditors.

We conducted our audit in accordance with laws, regulations and auditing standards and practices generally accepted in Norway, including standards on auditing adopted by The Norwegian Institute of Public Accountants. These auditing standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. To the extent required by law and auditing standards an audit also comprises a review of the management of the Company's financial affairs and its accounting and internal control systems. We believe that our audit provides a reasonable basis for our opinion.

IN OUR OPINION,

the financial statements of the parent company have been prepared in accordance with the law and regulations and give a true and fair view of the financial position of the company as of 31 December 2009 and the results of its operations and its cash flows for the year then ended, in accordance with accounting standards, principles and practices generally accepted in Norway
the financial statements of the group have been prepared in accordance with the law and regulations and give a true and fair view of the financial position of the group as of 31 December 2009, and the results of its operations and its cash flows and the changes in equity for the year then ended, in accordance with International Financial Reporting Standards as adopted by the EU
the company's management has fulfilled its duty to produce a proper and clearly set out registration and documentation of accounting information in accordance with the law and good bookkeeping practice in Norway
the information in the Board of Directors' report concerning the financial statements, the going concern assumption, and the proposal for the coverage of the loss are consistent with the financial statements and comply with the law and regulations.

Oslo, 24 March 2010
PricewaterhouseCoopers AS

Geir Haglund
State Authorised Public Accountant (Norway)

BOARD OF DIRECTOR'S RESPONSIBILITY STATEMENT | 79

RESPONSIBILITY STATEMENT

We confirm, to the best of our knowledge that the financial statements for the period 1 January to 31 December 2009 have been prepared in accordance with current applicable accounting standards, and give a true and fair view of the assets, liabilities, financial position and profit or loss of the entity and the group taken as a whole. We also confirm that the management report includes a true and fair review of the development and performance of the business and the position of the entity and the group, together with a description of the principal risks and uncertainties facing the entity and the group.

Oslo, 24 March 2010

Gunnar Hirsti
Board Chairman

Per Kyllingstad
Board Member

Bente Loe
Board Member

Brita Eilertsen
Board Member

Dirk Blaauw
CEO and Board Member

CORPORATE GOVERNANCE

CORPORATE GOVERNANCE
B 1

CORPORATE GOVERNANCE

1. STATEMENT

For Blom ASA it is important that investors, clients, partners and others who follow the company have confidence in the fact that the company's operations are managed properly in accordance with sound ethical guidelines. Reliability, honesty and integrity are keys to the company's core values. These are values that are important for a good reputation and the realisation of Blom's business goals.

Blom is concerned about having an adequate level of independence between the company's bodies and confidence in the fact that the company is managed in accordance with principles that promote ethical and sustainable business practices.

Blom ASA, which is the parent company of the group, is the company in which the group's supervisory board and management functions are carried out. The group's management structure is based on Norwegian company law, the Articles of Association, the rules of procedure for the Board of Directors, and the instructions for the company's management adopted by the Board of Directors. The company has prepared its own ethical guidelines.

Non-conformance with the recommendation: None

2. OPERATIONS

Blom is a leading European supplier for the collection, processing and modelling of geographic information. Blom possesses unique European databases with maps, images and models. The company delivers data and solutions to customers in the public and private sectors, as well as the consumer market, and it allows partners to develop applications based on the company's databases, location-based services and navigation solutions. The object of the company is established in its Articles of the Association.

The Board of Directors views it as its duty to continuously adapt the company's strategy so as to optimise the shareholders' return, based on the resources represented by the company at any given time. The Board of Directors works to develop the company based on the resources represented by the competence of its employees and the recognition the company enjoys in the market. Blom will use the financial platform and instruments that are available to achieve this goal.

Non-conformance with the recommendation: None

3. SHARE CAPITAL AND DIVIDENDS

Capital

The total assets at the end of the year 2009 were NOK 1,414 million, with an equity ratio of 49.3 per cent. The Board of Directors considers this to be satisfactory. The company's need for equity is evaluated continuously in relation to the company's goals, strategy and risk profile. Dividends will be evaluated continuously as a result of the company's strategy and earnings.

Authorisation to increase capital

The Board of Directors' power of attorney to increase the share capital by a maximum of 4,170,000 shares (10 per cent), which was granted at the General Meeting of 30 April 2009, is time-limited and valid until the Ordinary General Meeting in 2010. This authorisation is a continuation of the authorisation granted to be Board of Directors at the General Meeting in 2008, but it has been reduced from 25 to 10 per cent of the share capital. The object of this authorisation is to give the Board of Directors financial freedom in connection with any acquisitions or similar transactions, and to strengthen the company's equity and financial platform in general. This authorisation was not utilised in 2009.

Authorisation to acquire treasury shares

The Board of Directors was authorised to acquire the company's own shares for a maximum of 10 per cent of the share capital, which corresponds to 4,170,000 shares, at the General Meeting of 30 April 2009. This authorisation is time-limited and valid until the Annual General Meeting in 2010. The authorisation is a continuation of the authorisation granted to the Board of Directors by the Annual General Meeting in 2008. The object of this authorisation is part of the Board of Directors' efforts to create the best possible capital structure for the company. This authorisation was not utilised in 2009.

Non-conformance with the recommendation: None

4. EQUAL TREATMENT OF SHAREHOLDERS AND TRANSACTIONS WITH CLOSE ASSOCIATES

The Board of Directors of Blom ASA is concerned about equal treatment of the company's shareholders. This is done by informing Oslo Stock Exchange, the company's shareholders, securities firms and the rest of the market on a continuous basis about the company's performance, activities and special events that may affect the price of the company's shares. Blom ASA only has one class of shares. The liquidity of the share is good, and the share is listed under OB Match on Oslo Stock Exchange.

If the Board of Directors proposes that the existing shareholders' pre-emptive rights be waived, the waiver will be based on the common interests of the company and the shareholders. If any not immaterial transactions are conducted between the company and shareholders, key executives and their close associates, the board will ensure that an independent valuation of the transactions in question is performed by a third party as required.

Non-conformance with the recommendation: None

5. FREE NEGOTIABILITY

Shares in Blom ASA are freely negotiable. The Articles of Association do not restrict the negotiability of shares.

Non-conformance with the recommendation: None

6. GENERAL MEETING

The Board of Directors will make arrangements so that as many shareholders as possible can exercise their rights by participating in the company's General Meeting and that the General Meeting can function as an effective meeting place for the shareholders and Board of Directors.

A complete notice and the necessary case documents will be sent to all the shareholders in writing at least 21 days in advance and will be available on Blom's website 21 days prior to the General Meeting.
The registration deadline is normally the day prior to the meeting.

CORPORATE GOVERNANCE

Shareholders who cannot be present at the General Meeting will be given an opportunity to vote. The Board of Directors will:
Provide information on the procedure for attending by proxy.
Appoint a person who can vote by proxy on behalf of shareholders.
Prepare a proxy form so that individual items to be considered and candidates to be elected can be voted on.
The Board of Directors and auditor will be present at the General Meeting.
The Board of Directors and chairperson will make arrangements so that the General Meeting has an opportunity to vote on each of the individual candidates for positions in the company's bodies.
The Board of Directors will put forth a proposal for an independent chairperson if such a chairperson is required to ensure a proper execution of the General Meeting.
The Ordinary General Meeting elects the Board of Directors, determines the directors' fees, approves the annual accounts and dividend proposed by the Board of Directors, elects the auditor and approves the auditor's remuneration, and deals with any other items stated in the notice of the meeting.
The Board Chairman is elected by the General Meeting.
Minutes of the General Meeting will be available on the company's website www.blomasa.com.

Non-conformance with the recommendation: None. See Item 7 with regard to nomination committee non-conformance.

7. NOMINATION COMMITTEE

Blom ASA does not have a nomination committee. The Board of Directors believes that the duties of the nomination committee can be performed satisfactorily by the Board of Directors in dialogue with various shareholder groups and the company's principal shareholders.

Non-conformance with the recommendation:

One instance of non-conformance.

8. COMPOSITION AND INDEPENDENCE OF THE BOARD OF DIRECTORS

The object of the Board of Director's work is to manage the shareholders' assets in the best possible manner and treat all shareholders equally. In electing Board Members, emphasis is, therefore, placed on having a Board of Directors that can safeguard the common interests of shareholders and the company's need for competence, capacity and diversity. Board members are elected for a term of two years.

Board Members Dirk Blaauw, Gunnar Hirsti, Per Kyllingstad and Brita Eilertsen were up for election at the Ordinary General Meeting on 30 April 2009. All were re-elected for a new two-year term. Dirk Blaauw was elected as the Board Chairman by the General Meeting.

After the General Meeting the Board of Directors consisted of Dirk Blaauw as the Board Chairman, in addition to Gunnar Hirsti, Per Kyllingstad, Bente Loe and Brita Eilertsen as board members.

On 1 July 2009 Dirk Blaauw was appointed as Blom's new CEO. Gunnar Hirsti took over as new Board Chairman at the same time. Dirk Blaauw will continue as a board member.

The majority of the board members are independent of the company's key employees and principal shareholders. The Board Chairman is elected by the General Meeting. The Board of Directors will elect a deputy chairman if it is appropriate for the proper performance of the Board of Directors.

Non-conformance with the recommendation: With the appointment of Dirk Blaauw on 1 July 2009, the CEO is also a director on the Company's Board of Directors. With the appointment of Dirk Blaauw the Board of Directors would like to provide the company with additional resources to strengthen the company's future growth opportunities and build up long-term shareholder value while the Board of Directors would like to keep Blaauw on the Board of Directors since he represents one of the company's principal shareholders.

9. WORK OF THE BOARD OF DIRECTORS

In accordance with Norwegian law the Board of Directors is responsible for the supervisory management of the company, while the CEO is responsible for the day-to-day management. The Board Chairman shall follow the development of the operations in close cooperation with the CEO, plan the board meetings and ensure that the Board Members receive the information that is required so that they can perform their functions properly in accordance with the legislation.

The Board Chairman chairs the board meetings. If it is appropriate for the proper performance of the Board of Directors, the Board of Directors will appoint another board member to head the discussion at board meetings. The CEO participates at board meetings. Other members of the management ordinarily participate whenever appropriate. The Board of Directors held a total 15 meetings in 2009.

In accordance with the rules of procedure, the Board of Directors shall have an annual plan for its work with emphasis on goals, strategy and execution. With effect from the Ordinary General Meeting in 2010, the Board of Directors has appointed and elected members to an audit committee and a compensation committee. The Board of Directors will consider the use of other board committees if it is appropriate to ensure that the Board of Directors performs its work in an independent manner. The Board of Directors has not made use of board committees in 2009.

Non-conformance with the recommendation: None

10. RISK MANAGEMENT AND INTERNAL CONTROL

The Board of Directors is concerned about the company having sound internal control and an appropriate system for risk management. This includes elements such as risk management of significant business risks, execution of significant management controls, and control of financial reporting and monitoring mechanisms.

Significant risks include strategic risks, financial risks, liquidity risks and operational risks. The company's significant risks are assessed on an ongoing basis and at least once a year, and they are included in the company's annual report.

Blom's internal control of financial reporting encompasses guidelines and procedures to ensure that the accounts are prepared in accordance with IFRS and provide a true picture of the company's operations and financial position.

Management controls are performed at a senior level in the company. The management structure was changed at the

CORPORATE GOVERNANCE 83

start of 2009 and the reporting system was changed accordingly in order to provide a closer follow-up of the subsidiaries, both financially and operatively. All of the Country Managing Directors (CMDs) in the group now report directly to the Chief Executive Officer (CEO). The CEO, through the company's Chief Operating Officer (COO), holds monthly meetings with each individual CMD.

The company is working on adaptation of the internal control and risk management to the company's management structure, as well as clarification and documentation of the systems based on criteria in "Internal Control – Integrated Framework issued by the Committee of Sponsoring Organisations of the Treadway Commission (COSO)."

Non-conformance with the recommendation: The Company is working actively on establishing separate routines for the follow-up of the company's core values and ethical guidelines. We are working on full documentation of the company's risk management and internal control.

11. REMUNERATION OF THE BOARD OF DIRECTORS

The General Meeting determines the remuneration for the Board of Directors. NOK 1,350,000 was paid in directors' fees for the period from 30 April 2008 to 30 April 2009.

Provisions totalling NOK 1,350,000 have been allocated in the accounts for the remuneration of the Board of Directors for the period from 1 May 2009 to 29 April 2010. The remuneration breaks down into NOK 450,000 for the Board Chairman and NOK 225,000 for other board members.

The remuneration of the Board of Directors shall reflect the Board's responsibility, expertise and time spent, and it is not to be performance-based. No options have therefore been issued or any other performance-linked remuneration given to members of the Board of Directors. For special tasks that are carried out by the members of the Board of Directors, the Board of Directors can approve separate remuneration for these services.

Non-conformance with the recommendation: None

12. REMUNERATION OF THE EXECUTIVE MANAGEMENT

The Board of Directors has prepared separate guidelines for remuneration of the executive management in accordance with the Limited Liability Companies Act. The guidelines will be presented to the General Meeting.

Special instructions have been prepared for the Chief Executive Office. Reference is also made to his responsibilities and duties in the company's rules of procedure for the Board of Directors. The remuneration for the Chief Executive Officer is set by the Board of Directors.

The company's key executives are paid a fixed salary that reflects the employee's education, experience and professional qualifications. It is important that the remuneration is at a level that makes it possible to attract the best qualified persons to the company's key positions. A bonus can be agreed on in addition to the base salary. The size of the bonus paid to the individual employees will be dependent in part on the achievement of individual targets and in part on the performance of the group. Key executives receive free telephone, mobile phone,

Internet, newspapers and canteen as benefits in kind. Key executives are members of the company's defined contribution scheme in the same manner as other employees. Blom believes that the company's performance-based bonus agreements with key executives have a motivating effect and are in the best interest of the company and its shareholders.

The company does not currently have any agreements with key executives concerning the allocation of shares, subscription rights, options and other forms of remuneration linked to shares or the performance of the company's share or shares of other companies within the group. The Board of Directors will, however, continuously consider incentive schemes that are appropriate to secure a qualified management for the company, including the use of various share option schemes.

Non-conformance with the recommendation: None

13. INFORMATION AND COMMUNICATION

Blom ASA seeks to maintain an open information policy in relation to shareholders, the media and other interested parties within the bounds of the securities legislation, accounting law and stock exchange regulations. The group has its own website (www.blomasa.com), which contains IR information and other information that is useful for understanding the group's overall operations and development. Open presentations with webcasts are held in connection with the reporting of interim results.

The Board Chairman and CEO or CFO are authorised to speak on behalf of the company.

Non-conformance with the recommendation: None

14. TAKEOVERS

The Board of Directors will not attempt to influence, hinder or complicate the submission of bids for the acquisition of the company's operations or shares, or prevent the execution thereof. The Board of Directors will help ensure that shareholders are treated equally. In the event of a bid for the company's shares, the Board of Directors will issue a statement of its assessment of the bid or state why it does not find it proper to issue a statement.

Non-conformance with the recommendation: None

15. AUDITOR

The company's auditor will prepare an annual plan for the performance of audit work and present the plan to the audit committee. The auditor will attend the board meeting that reviews the annual accounts. The auditor performs otherwise the activities he is required to perform in accordance with Norwegian law and the generally accepted auditing standards.

The auditor will review the company's internal control, including the identification of weaknesses and recommendations for improvements, annually together with the audit committee.

The Board of Directors has given the management access to use the auditor, to a limited extent, for the performance of services for the company other than pure auditing. This applies in particular to matters of a particularly complicated nature such as tax issues, acquisitions and mergers/demergers. The Board of Directors feels that such consulting does not affect the auditor's independence in relation to the company.

Non-conformance with the recommendation: None

BOARD OF DIRECTORS

GUNNAR HIRSTI, Drøbak, Board Chairman. Hirsti holds a drilling engineering degree. During the last 20 years he has held various managerial and board positions in various private and listed companies, both nationally and internationally. His managerial duties have been related to companies where, for example, structural and strategic changes have been required

PER KYLLINGSTAD, Bærum, Board member. Kyllingstad holds a law degree from the University of Oslo and a Master of Law degree from Temple University, Philadelphia. He has almost 20 years of experience as an attorney, and his main fields of practice include offshore, shipping, banking and finance, property, board appointments and general business law. Kyllingstad is a partner in the firm of Kyllingstad Kleveland Advokatfirma DA.

DIRK BLAAUW, Oslo, Board member. Blaauw holds a business management degree from Heriot-Watt University in Edinburgh. He has more than 20 years of experience from managerial positions in a number of shipping and offshore companies listed on the Oslo Stock Exchange, and he has worked with business development in recent years. He has been the CEO of Blom from January 2004.

BRITA EILERTSEN, Oslo, Board member. Eilertsen is a business economist with an MSc (siviløkonom) degree from the Norwegian School of Economics and Business Administration (NHH) and a licensed Financial Analyst. She has more than 10 years of experience from corporate finance activities in securities firm in the areas of mergers and acquisitions and equity transactions. She currently has her own business.

BENTE LOE, Oslo, Board member. Loe studied at the University of Denver and has an MBA in Finance. She has experience from acquisitions and mergers, as well as the financing of projects for Kværner investments in Oslo and London. During the last eight years she has worked as a partner in Tele Venture Management with the development of Telenor Venture Fonds companies in IT and telecommunication. Loe currently works as an investment director with Ojada AS, a private investment company.

INFORMATION ON SHARES IN BLOM

Blom ASA has one class of shares, and there were 41,700,636 outstanding shares in the company at the end of 2009. The share capital has remained unchanged throughout the year. At the end of the year the company owned 1,100,000 shares, which corresponds to 2.64 per cent of the share capital.

Blom's Annual General Meeting of 30 April 2009 granted the Board of Directors authorisation to increase the share capital by up to 10 per cent, which corresponds to 4,170,000 shares. This authorisation can also be used in full or in part to raise a convertible loan for a maximum of NOK 200 million. The General Meeting also granted the Board of Directors authorisation to acquire shares in Blom ASA for up to 10 per cent of the share capital, which corresponds to 4,170,000 shares. Both of these authorisations are valid up until the Annual General Meeting in 2010. None of the authorisations were utilised in 2009.

DIVIDENDS

In accordance with the company's future growth goals, Blom will seek to maintain a sound financial platform. Dividends will be considered on an ongoing basis as a result of the company's strategy and earnings. The Board of Directors' proposal for the application of the net profit for 2009 for the group and parent company is to allocate the profit in its entirety to equity and utilise it for further growth. The company has exciting business opportunities ahead in a growing market.

SHAREHOLDERS AND VOTING RIGHTS

Blom ASA had 2,742 shareholders at the end of 2009. Foreign shareholders owned 46.4 per cent of the shares. All the shares are registered by name and carry equal voting rights. The shares are freely negotiable.

BLOM'S 20 LARGEST SHAREHOLDERS AS AT 31 DECEMBER 2009:

Shareholder		Number	%
1	GOLDMAN SACHS & CO - SECURITY CLIENT SEGR	NOM	12 606 901
2	FINANSPARTNER INVEST AS		3 843 499
3	GOLDMAN SACHS INT. - SECURITY CLIENT SEGR	NOM	1 799 000
4	BLOM ASA (own shares)		1 100 000
5	BJØRNSTAD & JENDAL A/S		937 600
6	MP PENSJON		826 524
7	BANK OF NEW YORK MEL S/A EQUITY TRI-PART		611 252
8	EUROCLEAR BANK S.A./25% CLIENTS	NOM	610 051
9	CACEIS BANK S/A NON TREATY ACCOUNT		461 600
10	SCANDIC AMERICAN EUROPEAN BRANCH		416 000
11	EIENDOMSUTVIKLING KRISTIANSAND AS		400 000
12	VPF NORDEA VEKST JPMORGAN EUROPE LTD.		393 900
13	MORGAN STANLEY & CO S/A MSCO CLIENT EQUITY	NOM	318 819
14	BNP PARIBAS SECS SER S/A SPANICH RESIDENT	NOM	306 545
15	AGAT AS		292 000
16	VPF NORDEA SMB C/O JPMORGAN EUROPE		273 300
17	NORDNET BANK AB	NOM	213 761
18	AVANSE NORGE (II) VPF		204 000
19	ØYEHOL OLE KRISTIAN		200 000
20	KARLSEN, KJELL AGNAR		199 000
	Total 20 largest shareholders		26 013 752
	Others		15 686 884
	Total		41 700 636

INFORMATION ON SHARES IN BLOM

INFORMATION TO THE STOCK MARKET

Blom assigns high priority to contact with the stock market and desires an open dialogue with the market players. Our goal is to ensure that the market always has adequate and identical information to ensure correct pricing of our shares. This is done by informing Oslo Stock Exchange, the company's shareholders, securities firms and the rest of the market on a continuous basis about the company's performance, activities and special events that may affect the price of the company's shares. The liquidity of the share is good, and the share is listed under OB Match on Oslo Stock Exchange.

The company's annual and quarterly reports will be published in Norwegian and English. Presentation of the quarterly reports will also be broadcast as webcasts. The group's website (www.blomasa.com) contains IR information in accordance with the requirements of Oslo Stock Exchange.

FINANCIAL CALENDAR 2010:

Date	Event
29/04/10	1st quarter 2010 results
29/04/10	General Meeting 2010
12/08/10	2nd quarter 2010 results
28/10/10	3rd quarter 2010 results
17/02/11	4th quarter 2010 results

BLOM OFFICES

BLOM HEAD OFFICE

PB 34 Skøyen

0212 Oslo

Norway

Tel: +47 22 13 19 20

Email: [email protected]

BLOM UK

The Astrolabe

Cheddar Business Park

Wedmore Road

Cheddar

Somerset BS27 3EB

Tel: +44 (0) 1934 311000

Sales Hotline: +44 (0) 1934 311001

Email: [email protected]

BLOM GERMANY

Friedrich-Engels-Ring 48 a

17033 Neubrandenburg

Germany

Tel: +49 395 5707 480

Email: [email protected]

BLOM DENMARK

Masnedogade 20

2100 København Ø

Denmark

Tel: +45 70 200 226

Email: [email protected]

BLOM ROMANIA

Ion Heliade Radulescu Street, no 3-5,

130010 - Targoviste,

Romania

Tel: +40(0)245 606 150

Email: [email protected]

BLOM NETHERLANDS (REP. OFFICE)

Roggeskker 12

8091-NH Wazep

The Netherlands

Tel: +31 38 376 1225

Email: [email protected]

BLOM UKRAINE

Production Office

Dernyvske str. 43, 3-d floor

Klev 03040

Ukraine

Tel: +38 (0)442 587 266

Email: [email protected]

BLOM NORWAY

PB 34 Skøyen

0212 Oslo

Norway

Tel: +47 23 25 45 00

Email: [email protected]

BLOM SWEDEN

Klippan 1J

414 51 Göteborg

Sweden

Tel: +46 31 704 56 70

Email: [email protected]

BLOM CGR ITALY

Via Cremonese 35/A

43126 Parma

Italy

Tel: +39 0521 99 49 48

Email: [email protected]

BLOM PORTUGAL

Av. do Forte, n°8, Edifício Pujol,

Fracção K

2795-503 Carnaxide

Portugal

Tel: +351 21 425 3830

Email: [email protected]

BLOM SPAIN

C/ Zurbano 46

28010 Madrid

Spain

Tel: +34 914 150 350

Email: [email protected]

BLOM BULGARIA

26 Rayko Aleksiev Str., Bl. 3, Entr. B

1113 Sofia

Bulgaria

Tel: +359(0)2 8724661

BLOM MOLDOVA

Str. Valea Trandafirilor, nr. 24A, mun.

Chisinau,

Republica Moldova, MD-2001

Tel: +373 22 261045

Email: [email protected]

BLOM FINLAND

Pasilanraitio 5

00240 Helsinki

Finland

Tel: +358 9 229 3060

Email: [email protected]

BLOM FRANCE (REP. OFFICE)

Parc de Crécy

13, rue Claude Chappe

69771 Saint Didier au Mont d'Or

France

Tel: +33 (0)6 99 07 21 67

Email: [email protected]

Design, Illustration and graphic production: sandbeck.no

AI assistant

NRC Group — Annual Report 2009

3693_rns_2010-04-13_ac888ca3-4eb7-403e-8b38-db4ce5a28a22.pdf

ANNUAL REPORT 2009

TABLE OF CONTENTS

KEY FIGURES

2009 HIGHLIGHTS

REVENUES AND EARNINGS IN 2009

GEO ENGINEERING SERVICES

INFORMATION SERVICES

SALESTURNOVER 2008–2009:

EBITDA 2008–2009:

CEO'S REPORT

ABOUT BLOM

BLOM FACTS:

GEO ENGINEERING SERVICES' PRODUCTS AND SERVICES

INFORMATION SERVICES' PRODUCTS AND SERVICES

BLOM'S DATABASES

AIRCRAFT RESOURCES:

SENSOR RESOURCES:

VISION AND STRATEGY

VISION

GOAL

STRATEGY

Market

Acquisitions and structural changes

Competence and innovation

Product and technology development

Social responsibility and ethics

Financial strategy

BLOM'S TECHNOLOGY USED TO REDUCE CLIMATE CHANGE EFFECTS

COMPETENCE

TECHNOLOGY

INNOVATION

SEABED MAPPING – BATHYMETRIC SCANNING

COMPETENCE

TECHNOLOGY

INNOVATION

MARKETS

INTRODUCTION

GEO ENGINEERING SERVICES

Public Services and Urban & Rural Planning

Corridor Infrastructure Engineering

Blom possesses the expertise, innovative capability and the technical know-how to manage any market needs

Environment & Forestry

Sea maps

Defense

Telecom

INFORMATION SERVICES

Navigation

Location Based Services (LBS)

Geo Search and Online Portals

Emergency & Security Services

Real Estate

Land & Property Administration

Other Markets

OVERVIEW AND SUMMARY

CHALLENGING YEAR WITH A GOOD FOUNDATION FOR GROWTH

MARKET

SALES TURNOVER 2008–2009:

EBITDA 2008–2009:

KEY ACCOUNTING PRINCIPLES

KEY CHANGES THROUGHOUT THE YEAR

SALES REVENUE

FINANCIAL EXPENSES

TAXES

INTANGIBLE ASSETS

SEGMENT INFORMATION

PROVISIONS FOR RECEIVABLES

FOREIGN CURRENCY AND INTEREST RATE CONDITIONS

LIQUIDITY AND CAPITAL STRUCTURE

EQUITY

BOARD OF DIRECTOR'S REPORT

BOARD OF DIRECTOR'S REPORT

COMPANY'S OPERATIONS

COMMENTS ON THE ANNUAL ACCOUNTS

RESULTS

INVESTMENTS

FINANCING

CONTINUATION AS A GOING CONCERN

NRC Group Annual Report 2009