Table of Contents 1. Introduction 8 1.1. What is this Report About? 8 1.2. Definitions 8 1.3. Summary Methodology 11 1.4. About Strategic Defence Intelligence 12 2. Executive Summary 13 3. Market Attractiveness and Emerging Opportunities 15 3.1. Current Market Scenario 16 3.1.1. Primary threat perception 16 3.1.2. Military Doctrine & Strategy 17 3.1.3. Military Fleet Size 18 3.1.4. Procurement Programs 21 3.1.5. Ongoing procurement programs 21 3.1.6. Future procurement programs 21 3.1.7. Top Procurement Programs By Value (US$ Million) 2018-2023 22 3.1.8. Social, Political and Economic Environment & Support for Defense Projects 23 3.1.9. Political & Strategic Alliances 24 3.2. Defense Market Size Historical and Forecast 25 3.2.1. Danish defense expenditure expected to register a CAGR of 10.51% over the forecast period 25 3.2.2. Growing Russian assertiveness and participation in NATO peacekeeping operations are expected to drive defense expenditure over the forecast period 27 3.2.3. Denmark’s defense expenditure as a percentage of GDP expected to decrease 28 3.3. Analysis of Defense Budget Allocation 30 3.3.1. Capital expenditure is expected to account for 12.3% of the defense budget over 2019-2023 30 3.3.2. Capital expenditure is expected to record a CAGR of 10.91% during the forecast period, 2019-2023 32 3.3.3. Per capita defense expenditure set to increase over the forecast period 35 3.4. Homeland Security Market Size and Forecast 37 3.4.1. Danish homeland security expenditure expected to increase at a CAGR of 1.30% during 2019-2023 37 3.4.2. Cyber security and counter terrorism are main homeland security concerns 39 3.4.3. Denmark falls under “some risk” by terrorism category 41 3.4.4. Denmark faces moderate level of threat from foreign terrorist organizations 42 3.4.5. Denmark has a terrorism index score of 1.5 44 3.5. Benchmarking with Key Global Markets 45 3.5.1. Denmark defense budget expected to decline over the forecast period 45 3.5.2. Danish defense budget expected to remain low compared to other European countries 47 3.5.3. Denmark allocates a low share of GDP for defense compared to most European countries 48 3.6. Market Opportunities: Key Trends and Growth Stimulators 49 3.6.1. Top 10 Defense market sectors by value (US$ Million) - Projections over period 2018-2023 49 3.6.2. Multi-role Aircraft 50 3.6.3. Land Based C4ISR 51 3.6.4. Armored Personnel Carrier (APC) 52 4. Defense Procurement Market Dynamics 53 4.1. Import Market Dynamics 54 4.1.1. Defense imports are expected to increase over the forecast period 54 4.1.2. Denmark sourced most of its arms imports from the US 55 4.1.3. Sensors and naval weapons dominate military hardware imports 56 4.2. Export Market Dynamics 57 4.2.1. Arms exports to recover during the forecast period 57 4.2.2. Brazil, Algeria. Finland, and Oman are the main purchasers of Danish arms 58 4.2.3. Sensors and ships are the main exported defense products 59 5. Industry Dynamics 60 5.1. Five Forces Analysis 60 5.1.1. Bargaining power of supplier: low to medium 61 5.1.2. Bargaining power of buyer: high 61 5.1.3. Barrier to entry: low 61 5.1.4. Intensity of rivalry: medium to high 61 5.1.5. Threat of substitution: high 61 6. Market Entry Strategy 62 6.1. Budgeting Process 62 6.2. Procurement Policy & Process 64 6.3. Market Regulation 65 6.3.1. Offset policy aids development of domestic defense industry 65 6.3.2. Denmark permits 100% foreign direct investment in the defense sector 66 6.4. Market Entry Route 67 6.4.1. Forming subsidiaries or acquiring Danish companies are good market entry opportunities 67 6.4.2. Forming consortiums and product development agreements open new market entry strategy choices 67 6.4.3. Joint weapon development programs are a viable market entry opportunity 67 6.5. Key Challenges 68 6.5.1. Low defense budget and limited technological capability hinder market entry by foreign companies 68 6.5.2. Preference given to procurements from US and Nordic countries 68 7. Competitive Landscape and Strategic Insights 69 7.1. Competitive Landscape Overview 69 7.2. Key Domestic Companies 72 7.2.1. Systematic A/S: overview 72 7.2.2. Systematic A/S: products and services 72 7.2.3. Systematic A/S: recent announcements and strategic initiatives 73 7.2.4. Systematic A/S: alliances 75 7.2.5. Systematic A/S: recent contract wins 76 7.2.6. Terma A/S: overview 77 7.2.7. Terma A/S: products 77 7.2.8. Terma A/S: recent announcements and strategic initiatives 78 7.2.9. Terma A/S: alliances 79 7.2.10. Terma A/S: recent contract wins 81 7.2.11. Copenhagen Sensor Technology ApS: overview 83 7.2.12. Copenhagen Sensor Technology ApS: products 83 7.2.13. Copenhagen Sensor Technology ApS: recent announcements and strategic initiatives 83 7.2.14. Copenhagen Sensor Technology ApS: alliances 85 7.2.15. Copenhagen Sensor Technology ApS: recent contract wins 85 7.2.16. Danish Aerotech A/S: overview 86 7.2.17. Danish Aerotech A/S: products 86 7.2.18. Danish Aerotech A/S: recent announcements and strategic initiatives 87 7.2.19. Danish Aerotech A/S: alliances 88 7.2.20. Danish Aerotech A/S: recent contract wins 89 7.2.21. Falck Schmidt Defense Systems A/S: overview 90 7.2.22. Falck Schmidt Defense Systems A/S: products 90 7.2.23. Falck Schmidt Defense Systems A/S: recent announcements and strategic initiatives 90 7.2.24. Falck Schmidt Defense Systems A/S: alliances 91 7.2.25. Falck Schmidt Defense Systems A/S: recent contract wins 91 7.2.26. IFAD TS A/S: overview 92 7.2.27. IFAD TS A/S: products 92 7.2.28. IFAD TS A/S: recent announcements and strategic initiatives 92 7.2.29. IFAD TS A/S: alliances 93 7.2.30. IFAD TS A/S: recent contract wins 94 7.3. Key Foreign Companies 95 7.3.1. Lockheed Martin: overview 95 7.3.2. Lockheed Martin: products and services 95 7.3.3. Lockheed Martin: recent announcements and strategic initiatives 95 7.3.4. Lockheed Martin: alliances 96 7.3.5. Lockheed Martin: recent contract wins 96 7.3.6. Lockheed Martin Corp.: financial analysis 97 7.3.7. TenCate Advanced Armour Denmark A/S: overview 99 7.3.8. TenCate Advanced Armour Denmark A/S: defense products 99 7.3.9. TenCate Advanced Armour Denmark A/S: recent announcements and strategic initiatives 100 7.3.10. TenCate Advanced Armour Denmark A/S: alliances 101 7.3.11. TenCate Advanced Armour Denmark A/S: recent contract wins 101 8. Business Environment and Country Risk 102 8.1. Economic Performance 102 8.1.1. Gross Domestic per Capita 102 8.1.2. Gross Domestic Product, current US$Billion 103 8.1.3. Exports of Goods and Services 104 8.1.4. Imports of Goods and Services 105 8.1.5. Gross National Disposable Income 106 8.1.6. Local Currency Unit per US$, Period Average 107 8.1.7. Market Capitalization of Listed Companies 108 8.1.8. Market Capitalization of Listed Companies as a % of GDP 109 8.1.9. Government Cash Surplus/Deficit, as a percentage of DKK (LCU) 110 8.1.10. Goods Exports as a % of GDP 111 8.1.11. Goods Imports as a % of GDP 112 8.1.12. Services Imports as a % of GDP 113 8.1.13. Services Exports as a % of GDP 114 8.1.14. Foreign Direct Investment, BoP, Current Values in US$ Billions 115 8.1.15. Net FDI as a percentage of GDP 116 8.1.16. Mining, Manufacturing, Utilities Output 117 9. Appendix 118 9.1. About SDI 118 9.2. Disclaimer 118

List of Tables Table 1: Danish Army Organization 18 Table 2: Danish Army Strength 18 Table 3: Danish Navy Strength 19 Table 4: Danish Air Force Strength 20 Table 5: Danish Ongoing Procurement Programs 21 Table 6: Danish Future Procurement Programs 21 Table 7: Top Danish Defense Programs by Value (US$ Million) 2018-2023 22 Table 8: Danish Defense Expenditure (DKK billion & US$ billion), 2014-2023 25 Table 9: Danish GDP Growth vs. Defense Expenditure as a Percentage of GDP, 2014-2023 28 Table 10: Danish Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023 30 Table 11: Danish Defense Capital Expenditure (DKK Billion & US$ Million), 2014-2023 33 Table 12: Danish Per-Capita Defense Expenditure (US$), 2014-2023 35 Table 13: Danish Homeland Security Expenditure (DKK Billion & US$ Billion), 2014-2023 37 Table 14: Terrorism Index, 2018 42 Table 15: Benchmarking with Key Markets - 2014-2018 vs. 2019-2023 45 Table 16: Top 10 Danish Defense Market Sectors by Value (US$ Million) - 2018-2023 49 Table 17: Danish Budget Formation Timetable: 62 Table 18: Offset Regulations in Denmark 65 Table 19: Top 10 Defense Suppliers in Danish Defense Industry - By Value (US$ Million) 2018-2023 69 Table 20: Competitive Landscape of the Danish Defense Industry 70 Table 21: Systematic A/S - Product Focus 72 Table 22: Systematic A/S: Alliances 75 Table 23: Systematic A/S: Recent Contract Wins 76 Table 24: Terma A/S - Product Focus 77 Table 25: Terma A/S: Alliances 79 Table 26: Terma A/S: Recent Contract Wins 81 Table 27: Copenhagen Sensor Technology ApS - Product Focus 83 Table 28: Copenhagen Sensor Technology ApS: Alliances 85 Table 29: Copenhagen Sensor Technology ApS: Recent Contract Wins 85 Table 30: Danish Aerotech A/S - Product Focus 86 Table 31: Danish Aerotech A/S: Alliances 88 Table 32: Danish Aerotech A/S: Recent Contract Wins 89 Table 33: Falck Schmidt Defense Systems A/S - Product Focus 90 Table 34: Falck Schmidt Defense Systems: Alliances 91 Table 35: Falck Schmidt Defense Systems: Recent contract wins 91 Table 36: IFAD TS A/S - Product Focus 92 Table 37: IFAD TS A/S: Alliances 93 Table 38: IFAD TS A/S: Recent Contract Wins 94 Table 39: Lockheed Martin - Product Focus 95 Table 40: Lockheed Martin Denmark: Alliances 96 Table 41: Lockheed Martin Denmark: Recent Contract Wins 96 Table 42: TenCate Advanced Armour Denmark A/S - Product Focus 99 Table 43: TenCate Advanced Armour Denmark A/S: Alliances 101 Table 44: TenCate Advanced Armour Denmark A/S: Recent Contract Wins 101 List of Figures Figure 1: Danish Defense Expenditure (DKK Billion), 2014-2023 26 Figure 2: Danish Defense Expenditure (US$ Billion), 2014-2023 26 Figure 3: Danish GDP Growth vs. Defense Expenditures Percentage of GDP Growth, 2014-2023 29 Figure 4:DanishDefense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023 31 Figure 5: Danish Defense Capital Expenditure (DKK Billion), 2014-2023 33 Figure 6: Danish Defense Capital Expenditure (US$ billion), 2014-2023 34 Figure 7: Danish Per Capita Defense Expenditure (US$), 2014-2023 36 Figure 8: Danish Homeland Security Budget (DKK Billion), 2014-2023 38 Figure 9: Danish Homeland Security Budget (US$ Billion), 2014-2023 38 Figure 10: Terrorism Heat Map, 2018 41 Figure 11: Terrorism Index, 2018 44 Figure 12: Benchmarking with Key Markets - 2014-2018 vs. 2019-2023 46 Figure 13: Benchmarking with World’s Largest and Top Regional Defense Spenders (US$ Billion), 2018 and 2023 47 Figure 14: Benchmarking with Large Defense Spenders as % of GDP - 2018 48 Figure 15: Danish Fighters Aircraft Market Size (US$ Million), 2018-2023 50 Figure 16: Danish Land Based C4ISR Market Size (US$ Million), 2018-2023 51 Figure 17: Danish Armored Personnel Vehicles Market Size (US$ Million), 2018-2023 52 Figure 18: Danish Defense Procurements In Terms Of Their Supplier Relationships 53 Figure 19: Denmark Defense Import Trend, 2012-2016 (TIV values) 54 Figure 20: Denmark Defense Imports by Country (%), 2012-2016 55 Figure 21: Denmark Defense Imports by Category (%), 2012-2016 56 Figure 22: Denmark Defense exports by Value, 2012-2016 (TIV values) 57 Figure 23: Denmark Defense exports by Country (%), 2012-2016 58 Figure 24: Denmark Defense exports by Category (%), 2012-2016 59 Figure 25: Industry Dynamics - Porter’s Five Forces Analysis 60 Figure 26: Lockheed Martin Corp. - Revenue Trend Analysis (US$ Billion), 2012-2016 97 Figure 27: Lockheed Martin Corp. - Operating Profit Trend Analysis (US$ Billion), 2012-2016 98 Figure 28: Lockheed Martin Corp. - Net Profit Trend Analysis (US$ Billion), 2012-2016 98 Figure 29: Denmark’s GDP per capita (US$), 2015-2025 102 Figure 30: Denmark’s Gross Domestic Product (current US$ Billion),2015-2025 103 Figure 31: Denmark’s Exports of goods and services (current LCU Billion), 2005-2014 104 Figure 32: Denmark’s Imports of goods and services (current LCU Billion), 2005-2014 105 Figure 33: Denmark’s gross national disposable income (US$ Billion), 2005-2014 106 Figure 34: Denmark’s DKK per US$, 2015-2024 107 Figure 35: Denmark’s Market Capitalization of listed Companies (US$ Bilion), 2005-2012 108 Figure 36: Denmark’s Market Capitalization of listed companies as a % of GDP, 2005-2012 109 Figure 37: Denmark’s Government Cash Surplus/deficit as a % of GDP,2005-2012 110 Figure 38: Denmark’s Goods Exports as a % of GDP, 2005-2014 111 Figure 39: Denmark’s Goods Imports as a % of GDP,2005-2014 112 Figure 40: Denmark’s Services Imports as a % of GDP, 2005-2014 113 Figure 41: Denmark’s Services Exports as a % of GDP, 2005-2014 114 Figure 42: Denmark’s FDI, net (BoP, Current US$ Billion), 2005-2014 115 Figure 43: Denmark’s Net FDI as a percentage of GDP, 2005-2014 116 Figure 44: Denmark’s Mining, Manufacturing, Utilities Output (LCU Billion), 2005-2014 117

Systematic A/S Terma A/S Copenhagen Sensor Technology (CST) APS Danish Aerotech A/S Falck Schmidt Defense Systems A/S (FSDS) IFAD TS A/S Lockheed Martin Denmark TenCate Advanced Armour Denmark A/S