Business Challenges in 2010

Idle capacity – focus on liquidity
Property leasing, Scion DTU's main business, will remain influenced by the general decline in the market, which was already felt in 2009 and will also affect Scion DTU fully in 2010. Clients downsizing and closing are in focus by means of a constant assessing of our clients' business conditions, carried out in collaboration with the clients themselves. Besides the focus on idle capacity, the stop to building and major investments will remain in force. Collectively, these measures will contribute to securing that Scion DTU's cash situation is unaffected and prepare us for a turn in the market conditions where we will resume investments.

Client risks
Scion DTU has great number of clients who are highly reliant on further capital injection. Investors are still reluctant to invest in these companies. We monitor our clients' financial situation closely in order to prepare for possible reductions.

Søhuset
By the end of 2009, Scion DTU's conference centre, Søhuset, has felt the market decrease. This development is expected to continue into 2010. Focus is concentrated on the marketing of Søhuset, and improving the service in accordance with the future expectations of the customers. This should prepare Søhuset for a turn in the market conditions.

Copenhagen Bio Science Park - COBIS
In November 2009, COBIS - the new biotech science park in Copenhagen – opened at the most difficult time, relative to the market and the economy. Despite of this, 60% of the building is currently leased. In 2010, an incubator environment – a growth environment – will be established within COBIS.

The end of 2009 saw a reduction in the group of owners, from three to two. Symbion and Scion DTU bought the shares previously held by Incuba Science Park. Thus COBIS is jointly owned by Symbion and Scion DTU.

Additional capital has been supplied from the group of owners due to the altered market for both leasing and financing.
There is a risk that more capital is needed from the owners. The commencement of phase two will necessitate further investments from the owners or external investors.