TNO ANNUAL REPORT 2011

ANNUAL REPORT
2011

2 KEY FIGURES

4 COMPOSITION OF THE BOARDS

7 TNO PROFILE IN 2011

8 REPORT OF THE SUPERVISORY BOARD

10 REPORT OF THE BOARD OF MANAGEMENT

13 FINANCE AND OPERATIONS

14 EMPLOYEES MAKE THE DIFFERENCE

18 CORPORATE SOCIAL RESPONSIBILITY

25 INDEPENDENT ASSURANCE REPORT

27 REPORT OF THE COUNCIL FOR DEFENCE RESEARCH

29 CORPORATE GOVERNANCE 2011

31 CONSOLIDATED BALANCE SHEET

56 BALANCE SHEET OF THE TNO ORGANISATION

70 AUDIT STATEMENT BY THE INDEPENDENT ACCOUNTANT

72 GRI CHART

85 COLOPHON

86 WE CONNECT PEOPLE AND KNOWLEDGE

TNO ANNUAL REPORT 2011 2/98

KEY FIGURES TNO: (TNO ORGANISATION INCLUDING GROUP COMPANIES) (in EUR x million)

2011 2010 2009

Knowledge as power
Within the themes 44,8 47,0 51,3
Across the themes (KAVOT) 27,0 27,3 27,7
Policy and application geared knowledge investments 117,1 120,5 123,9
Total income from government funding 188,9 194,8 202,9
Market income 388,1 369,0 364,8
Income 577.0 563,8 567,7
Net income 1) 489.4 484,2 486,8
Added value 2) 403,8 402,3 395,5

Operating result before extraordinary depreciations -0,1 2,8 -12,0

Extraordinary depreciations of tangible fixed assets - - -4,7
Operating result -0,1 2,8 -16,7
Net result 0,4 2,4 -14,2
Net result as % of market income 0.1% 0.7% -3.9%

Number of employees (effective average) 3,932 4,189 4,363

Number of employees (effective year end) 3,828 4,135 4,269
Net income per employee (effective average) in EUR x thousand 124,5 115,6 111,6
Added value per employee (effective average) in EUR x thousand 102,7 96,0 90,7
Personnel expenses per employee (effective average) in EUR x thousand 4) 94,7 87,0 85,5
Personnel expenses 372,3 364,3 373,1

Working capital 41,5 30,5 8,1

Equity 190,0 189,6 187,0
Cash flow 3) 38,0 43,6 26,3
Investments of TNO organisation 12,0 19,8 29,5
Investments of group companies 11,0 9,0 11,7
Current ratio 1,22 1,16 1,04
Solvency 0,42 0,40 0,41

1) Net income = income direct project costs

2) Added value = net income + other operating income other operating expenses
3) Cash flow = result + depreciations + disinvestments + mutation in equalisation account for investment funds
4) Increase in 2011 the result of: change in composition of personnel, autonomous salary rises, rise in pension
premium and higher temporary staffing costs

TNO ANNUAL REPORT 2011 3/98

KERNGEGEVENS TNO (TNO ORGANISATION INCL. GROUP COMPANIES) (in EUR x million)

TNO ORGANISATION 2011 2010 2009

Knowledge as power
Within the themes 44,8 47,0 51,3
Across the themes (KAVOT) 27,0 27,3 27,7
Policy and application geared knowledge investments 117,1 120,5 123,9
Total income from government funding 188,9 194,8 202,9
Market income 289,2 297,2 291,7
Income 478,1 492,0 494,6

Operating result before extraordinary depreciations -0,2 4,1 -10,1

Extraordinary depreciations of tangible fixed assets - - -4,7
Operating result -0,2 4,1 -14,8
Result (excl. result of group companies) 1.8 5,6 -12,7
Operating result TNO themes/expertise areas 4,5 11,5 -1,8
Net result TNO themes/expertise areas 5,1 11,8 -0,5

Number of employees (effective average) 3,158 3,571 3,743

Number of employees (effective year end) 3,063 3,512 3,660
Term of work in progress and debtors in months (TNO core areas) 1,7 1,3 1,5
Solvency 0,46 0,44 0,44

Group companies
Income 110,7 77,8 77,3

Operating result 0,1 -1,3 -1,9

Net result -1,4 -3,2 -1,5

Number of employees (effective average) 774 618 620

Number of employees (effective year end) 765 623 609

TNO ANNUAL REPORT 2011 4/98

COMPOSITION OF
BOARDS
TNO SUPERVISORY BOARD
AS OF 1 APRIL 2011
Dr. C.A. Linse, chairman
SINCE 01-03-2011
Chairman of the Supervisory Board of Mn Services NV, Super-
visory Director of AKZO Nobel Nederland BV, Supervisory Direc-
tor of MRC Global Inc. Houston, Board member of the
STW Technology Association.
Lady I.H.J. Vanden Berghe
SINCE 01-05-2000
Administrator general of the National geographical Institute.
Various board positions including: President of Eurogreographics,
first delegated Belgian representative in EuroSDR-OEEPE,
founding member of EuroSDR and member of the Management
Board, Chairman of the council of Administrators General of
the semi-government organisations, Chairman of the inter
semi-governmental internship committee, visiting professor at
the KU Leuven, board member of VITO (Flemish Institute for
Technological Research).
TNO ANNUAL REPORT 2011
Professor J.M. Bensing
SINCE 01-09-2008
Professor of Clinical and Health Psychology at Utrecht,
Honorary Research Fellow of the Netherlands Institute for
Health Services Research (NIVEL).
Various executive and supervisory positions including
Member of the Social Sciences Council of the Royal Netherlands
Academy of Arts and Sciences (KNAW), Member of the Holland
Society of Sciences, Member of the Health Council (Presidium
member), Vice-Chairman of the Health Research Council (RGO),
Vice-chairman of the Supervisory Board of Erasmus University
Rotterdam, Vice-chairman of the Supervisory Board of Jeroen
Bosch Hospital, Member of the Supervisory Board of the
Consumer Association, Member of the Supervisory Board for
the National Initiative Brain & Cognition (NIHC), Member of the
broad framework committee Prevention ZonMw, Chairman
of sub-programme 3, Screening and Preventive interventions
(ZonMw Prevention programme), Member of the RAAK Pro
assessment committee, Knowledge Development Foundation
HBO (SKO), Member of the working group Health Research at
Universities of Applied Science, RGO.
I.G.C. Faber MBA
SINCE 01-10-2009
Director of Faber Halbertsma Group.
Various executive and supervisory positions including Member
of Advisory Board of Science and Technology Policy (AWT).
Chairman of FB Ned (Association of amiliy companies), Member
of the Supervisory Board of Utrecht Exhibition Centre, Member
of the Supervisory Board of Rova (waste processing), Zwolle,
Member of the board of the National Register of Supervisory
Directors and Supervisors
H.W. Broeders
SINCE 01-07-2006
Executive Committee member of Capgemini S.A.
Various executive and supervisory positions including
Non-executive director Forrester Research, Vice-chairman
of Supervisory Board of Utrecht Exhibition Centre N.V.
Member of Executive Board of VNO-NCW, Member of AB
Stichting Toekomstbeeld der Techniek, Member of SER (Social
Economic Council)
Dr. E. Veltkamp
SINCE 01-05-2002
Former Senior Vice President of R&D Unilever N.V. and member
of Unilever Foods Executive, delegated supervisory director
and board chairman of Enza seeds BV, various executive and
supervisory positions.
C. van Dijkhuizen, MA
SINCE 01-11-2009
Vice-chairman and Chief Financial Officer of NIBC Bank N.V.
Various executive and supervisory positions including Member
of the Supervisory Board of Museum Meermanno, Cairman of
the government committee for Export, import and Investment
guarantees.
S.J. Vlaar, MA, secretary
SINCE 01-09-2008
5/98
COMPOSITION OF BOARDS
TNO Board of Management
AS OF 1 APRIL 2011
J.H.J. Mengelers, MSc, chairman
SINCE 01-04-2008
Various executive and supervisory positions, including:
Chairman of the Executive Board of EARTO, Supervisory Board
member of RAI Holding, Executive Board member of Joanneum
Research Forschungsgesellschaft mbH, Innovation Council
member (Ministry of I&M), Member of the Executive Board De
Maatschappij, Executive Committee member of Point-One,
Board member of SIA (Stichting Innovatie Alliantie),
Board member of SKO (Stichting Kennisontwikkeling HBO),
Board member of STT (Stichting Toekomstbeeld der Techniek).
Dr C.M. Hooymans
SINCE: 1-10-2002
Various executive and supervisory positions, including:
Deputy Crown-appointed member of the Social Economic
Council (SER), Supervisory Board member of Royal KPN N.V.,
Non-executive Director of Rabobank Vallei-en-Rijn, Member of
the Advisory Council for Science and Technology (AWT) of the
ministries of OCW and E,L & I, Supervisory Board member of
Catholic University Foundation, Advisory board of Meridian
Institute Washington, USA, Member of the Board of the Kind 
William I Foundation for the selection of the biannual
entrepreneur award.
TNO ANNUAL REPORT 2011
TNO Council for Defence Research
PER 15 MAART 2012
Vice-Admiral (retired) J.W. Kelder Retired Vice Admiral J.W. (Jan Willem) Kelder, chairman
SINCE 01-01-2009
SINCE 01-01-2009 TNO Board of Management member charged with the Defence
Various executive and supervisory positions, including: portfolio
Board member of the Indonesian Remembrance Centre
Bronbeek, Non-executive director of the Association of the Dutch Mr F.H. (Frits) Herman de Groot
Historical Ship Museum, Board member of the Netherlands SINCE 01-07-2011
Industries for Defence and Security (NIDV), Board member of Ministry of Defence, Deputy Secretary-General
the Dutch Maritime Network Foundation (NML), Member of the
Life-Saving Council of Clipper Stad Amsterdam, Non-executive Dr S.J.G. (Sebastian) Reyn
Director of the Hague Centre for Strategic Studies (HCSS), SINCE 04-05-2010
Chairman of the Board of Maritime Knowledge Centre Ministry of Defence, Knowledge and Strategy Policy Advisor
Foundation(MKC).
Rear Admiral R.P. (Rob) Bauer
SINCE 05-03-2011
Ministry of Defence, Interim Director of Personnel Policy
Mr. P.J. (Jan) de Jong
SINCE 10-05-2010
Ministry of Defence, Interim Director of Personnel Policy
Ms F. (Frances) Diepstraten, LLM
SINCE 01-08-2011
Ministry of Defence, Director of Information and Organisation
P.J. (Jelle) Keuning, MSc
SINCE 01-04-2006
Ministry of Defence, Deputy Head of Defence Research and
Development
M.J.M. (Rini) Goos, MSc
SINCE 01-01-2011
Ministry of E, L & I, Supervisor director for Military Product
6/98
COMPOSITION OF BOARDS

OBSERVER/EXPERT

Major General (retired) A.C.J. (Lex) Besselink, MSc Ms. R.W.C. Clabbers. MSc
SINCE 01-12-2009 SINCE 01-09-2010
Chairman of TNO Strategic Advisory Council for Defence, Ministry of Security and Justice, Director of National Security
Safety and Security, Director of Dutch Institute World Class
Maintenance, etc. Dr M.P.I. Manders
SINCE 01-03-2009
Major General Marine Corps (retired) F.E. (Frank) van Kappen TNO, Defence, Security and Safety Manager Strategy and
SINCE 01-12-2006 Planning
Member of the Upper House, NATO advisor, HCSS advisor, etc.

Drs. C. van Vliet

SINCE 31-05-2011
Member of TNO Strategy Advisory Council for the Defence,
Safety and Security theme, Director of the Netherlands Industry
for Defence and Security Association (NIDV).

TNO ANNUAL REPORT 2011 7/98

TNO PROFILE
IN 2011

In 2011 the total consolidated income rose by 1.3 million euros 1. CONSOLIDATED INCOME TNO 2011 [ 577 million]

to 577 million euros (see chart 1), a third of which - 189 million incl. income from TNO Group companies
Consolidated Group companies [>50% holding]
euros - was government funding for the purpose of developing 2011 = 111 million
new knowledge. Of this, 27 million euros was available for
KNOWLEDGE DEVELOPMENT
knowledge as cross-theme capacity or knowledge development Government funding
189 m
not directly linked to demand from society or government. The
government-wide distribution of knowledge development via
demand-driven programmes is shown in chart 2. 577 m KNOWLEDGE APPLICATION
Contract assignments
277 m
KNOWLEDGE EXPLOITATION After internal income
Market income of 388 million euros includes 294 million euros TNO Group companies
111 m
from contract assignments in themes and expertise areas:
this knowledge application is based on the distinctive position
built up by the themes via the aforementioned demand-driven
research (knowledge development). Chart 3 reveals the 2. TNO GOVERNMENT FUNDING 2011 [ 189 million]
distribution across Dutch industry (38 per cent), International Knowledge as power within the themes [KAV]
(38 per cent) and Dutch government (24 per cent). Knowledge as power across the themes [KAVOT]
Policy and application geared knowledge investments [BTK]

BZK 3 m
Of the total market income 111 million euros relate to the
VWS 7 m
knowledge exploited by the 45 or so companies within TNO SZW 10 m
Companies B.V. This is the consolidated income of the group
I&M 21 m
companies in which TNO still has a holding of more than 50 per incl. 15 m DINO
cent. This knowledge exploitation receives no government
189 m
ELI 106 m
funding and is therefore incorporated in a separate private incl. 27 m KAVOT
limited liability structure (B.V.). DEF 42 mln
These companies tend to emerge as spin-offs or spin-outs
from the activities within TNO.
*Data en Informatie Nederlandse Ondergrond

The total international income of the themes, expertise areas

and TNO Companies B.V. rose in 2011 to 146 million euros. 3. CONSOLIDATED MARKET INCOME 2011 [ million]

Dutch 2011 148 m

Industry 2010 144 m

2011 146 m
International
2010 128 m

Dutch 2011 94 m
Government 2010 97 m

0 50 100 150

TNO ANNUAL REPORT 2011 8/98

REPORT OF THE
SUPERVISORY BOARD

ESTABLISHED IN 1932 TO HELP THE NETHERLANDS THROUGH THE CRISIS AT THAT TIME, TNO WAS AN INDEPENDENT
ORGANISATION IN WHICH APPLIED RESEARCH WAS CLUSTERED AND IN WHICH INVESTMENTS WERE MADE TO
CREATE FUTURE INNOVATION. THE PRINCIPLE THEN IS NO DIFFERENT NOW, AS RECENT ANALYSES OF THE EFFECTS
OF PARTICIPATION IN SPECIFIC RESEARCH PROGRAMMES REVEAL EACH EURO INVESTED IN TNO CAN BE WORTH
7 TO 10 EUROS FOR INDUSTRY.

Innovation clustering in the Netherlands under the Ministry of
Economic Affairs, Agriculture and Innovation (EL&I), the inter-
mediary for TNO, demanded and received particular attention
in 2011. The introduction of the Top Sectors policy and the way
in which TNO can contribute to this was a subject of regular
discussion in 2011 between the Supervisory Board and the
Board of Management. TNO contributes constructively to this
development and plays a role in the relevant societal themes.
In 2011 we looked closely at how we could optimally align with
the Top Sectors to maximise the impact targeted in the TNO
strategy. In 2012 this will be translated into tangible research
projects. The Board is very pleased with the cooperation
between TNO and the Ministry of EL&I in this respect.
The Supervisory Board took great interest in 2011 in seeing
how the organisational changes proposed in 2010 turned out.
It was a development that certainly had a significant influence
on operations and results in the first quarter. The difficult
financial start of the year and the measures that had to be
taken as a result were discussed in depth by the two boards.
These measures bore fruit during the course of the year, with
2011 despite being below budget still managing to close
with a positive result.
In 2011 the situation concerning TNO Companies BV (TB)
required extra attention. The Supervisory Board in its meeting
considered the strategy of TB, the governance model and the
financial situation of the limited companies. One of the Super-
visory Board meetings took place at the premises of the Holland
Metrology company where the Board, in addition to its discus-
sions about the direction needed to get the result back on track,
witnessed the unicity of the Euroloop facility.
The Supervisory Board was regularly informed about the research
being done at TNO and how it was taking place, in part by meeting
on site. Holst Centre was an inspiring example of this in 2011.
The Board was able to see for itself how this open innovation
model, supported by government, research and industry, arrives
at practicable innovative solutions. It is quite understandable
that Holst Centre is regarded as an example of a successful
innovation model, and so the continuity of this cooperation
model is an item to attend to in the coming period. Individual
members of the board also paid a range of visits to TNO research
centres.
The Supervisory Board was unchanged in 2011. The Super-
visory Board attaches value to making the acquaintance of new
directors who report directly to the Board of Management. This
occurred for all new appointments in 2011. Ms Leemhuis-Stout,
who had given dedicated service to TNO for ten years as chair
of the Supervisory Board, was succeeded by the undersigned.
TNO and the Supervisory Board are exceptionally grateful for her
administratively keen and steadfast commitment to TNO. The
appointment of Mr Broeders was also extended in 2011. The
Board is very pleased that he will be committing his knowledge
and expertise to TNO for a further five-year period.
In the Supervisory Board in 2011 the committee structure was

TNO ANNUAL REPORT 2011 9/98

REPORT OF THE SUPERVISORY BOARD

refined. The appointment of an Audit Committee gives the Super-

visory Board the possibility to strengthen its duty to supervise
the finance and risk management of TNO. Also the Selection
and Appointments Committee merged with the Remuneration
Committee to form a new committee within which HR aspects
can be elaborated for the Supervisory Board.

In this first year as chairperson, I have been able to see at close

quarters the key role played by TNO for government, industry
and society. In the intensive introductory talks I met inspired
and capable people who are passionate about the field in which
they achieve practicable innovations. This provides a nourishing
base to continue fulfilling and strengthening this vital role in the
coming years in the face of so many changes in the economy, in
government and in society.

Delft, 21 March 2012

On behalf of the TNO Supervisory Board,
Dr. C.A. Linse, chairperson

TNO ANNUAL REPORT 2011 10/98

REPORT OF THE BOARD
OF MANAGEMENT

TNO: SURE-FOOTED IN A TRANSITIONAL WORLD. 2011 WAS A VERY TURBULENT AND, FOR TNO, AN EXCEPTIONALLY
IMPORTANT YEAR: THE FIRST YEAR OF THE NEW STRATEGIC PERIOD 2011-2014, BUT ESPECIALLY THE YEAR IN
WHICH WE MANAGED TO CONVERT THE OPPORTUNITY TO SUBSTANTIATE OUR MISSION OF INNOVATION FOR LIFE.
WE DO THIS TOGETHER WITH DIFFERENT PARTIES AND WE DO IT WITH FOCUS. FOCUS THAT COMES FROM SEVEN
KEY SOCIETAL THEMES THAT ARE GEARED TO HAVING IMPACT ON SOCIETY. THOSE ARE OUR DRIVERS. WE LOOK
BACK TO ILLUSTRATE WHAT TNO, AS A MAJOR INNOVATION ORGANISATION THE IN NETHERLANDS, ACHIEVED IN
2011.

INSPIRING CONNECTIONS
Connecting with partners, stakeholders and employees is
essential to being able to innovate with success. Our seven
themes cover a particularly wide terrain: from the smallest
structures on a computer chip to dike monitoring from space
and the health of the Dutch population. TNO is involved in
several key partnerships, like the research organisations within
the European Association of Research and Technology
Organisations (EARTO) and in TO2 a partnership with ECN,
NLR, Deltares, DLO, Marin and the research institutes of
Wageningen University. Here the parties work together in
research programmes and approaches to the top sectors.
INNOVATIVE POLICY
A major connection tool this year was our link with the nine
economic top sectors. The government has decided to ask
industrial leading lights from the various sectors to take the lead in
arriving at market-focused visions. The intrinsic side is covered
by the knowledge world. TNOs role is both intrinsic as a supplier
of knowledge and procedural as supervisor of the triangular
debate between government, research and industry. We
expressly took on the role at the beginning of 2011, ensuring
short communication lines with the Ministry of Economic Affairs,
Agriculture and Innovation. In addition to the nine economic top
sectors, TNO also focused on giving a place in the new
innovation policy to the five societal themes: ICT, Sustainable
Environment, Public Safety, Defence, and Work and Health.
We believe that there are more opportunities in the field of
innovation in the Netherlands. External surveys reveal that
the Netherlands is only an adequate achiever if you consider
innovation practice; too much knowledge lies unused on the shelf.
The regulations imposed by the government are a particular
hindrance. A better climate for business to locate and operate
along with powerful incentives for knowledge and innovation
are crucial if the innovation potential that is present is to have
a chance to flourish. The Netherlands is a small country whose
most important product is knowledge. For TNO, too, we see a key
assignment lying here: to constantly forge connections among
parties so that relevant solutions are produced that are full of
impact and solve the major societal challenges and improve the
competitiveness of the Netherlands.
SUCCESSFUL IMPACT
Among the most important contacts made by TNO are relation-
ships with customers. Two-thirds of our income is in the
competitive arena; the rest comes from government funding for
demand-driven programmes. The feedback from customers via
independent audits is very important for us and we are really
pleased that TNO scores an average of 4.24 (on a scale of 1 to
5). SMEs are a special area of focus for us. TNO has a facilitating
role for SMEs and sometimes even an orchestrating role, as
was evident from our successful annual SBIR (small business
innovation research) event when very promising innovations
were offered to SMEs who would be able to develop them further

TNO ANNUAL REPORT 2011 11/98

REPORT OF THE BOARD OF MANAGEMENT
into a market-ripe proposition with help
from TNO. Each TNO theme has an SME
manager who is responsible for converting
innovation opportunities for SMEs. In this
way we actively lay connections between
innovation and SMEs, which leads to
market successes.
EXCELLENT KNOWLEDGE BASE
TNO has a particularly broad technology
and knowledge portfolio, whether this
concerns healthy food or space research
calibration. TNO is constantly updating its
portfolio and keeps it pioneering. What
knowledge do we need to achieve impact
and what activities can we wind down?
One knowledge domain where we expect
a lot is solar energy. The combination
of energy generation and utilisation will
become more commonplace when this
enables the devices to become smaller
and more energy-efficient. But once work
in a specific knowledge domain becomes
routine, we ask ourselves whether its
might be better to continue such an
activity as a business. This has happened
in recent years with success via the
private limited liability company, TNO
Companies BV.
TALENTED EMPLOYEES
TNO is a breeding pond of talent. The are
many people with a TNO background that
play a significant role in innovation in
the Netherlands. Exceptionally inspiring
for us are the TNO employees who are
TNO ANNUAL REPORT 2011
passionate about their work and come up
with brilliant innovations, who make the
difference through cooperation with other
parties and form the core of our
organisation. To boost the content of
our breeding pond we have refined our
recruitment policy. In addition to intrinsic
qualities we select candidates explicitly
in terms of personal effectiveness,
commitment, leadership, project
management and communicative skills.
This enables TNO to apply the best mix of
talent per project. And that is something
we are proud of!
In 2011 we also decided to give our
Principal and Senior Scientists a more
central role in shaping knowledge
programmes, involving Principal Scientists
more in drafting priorities for applied
knowledge development in collaboration
with Senior Scientists, intermediate and
junior colleagues.
GLOBAL PLAYING FIELD
Internationally TNO has spread its wings.
The opening of an office on Aruba saw us
take a first step to exploiting the Latin-
American market. From this office TNO is
contributing to making Aruba sustainable
by establishing a living lab and
undertaking R&D projects with local
companies. We are also connecting
with business partners in Brazil whose
economy is surging forward; in a short
time the country has become a key player
in biofuels, a knowledge domain in which
there is much to gain for both of us from
each other. The office opened in Qatar
in 2011 will act as a link between the
expertise of TNO in the Netherlands and
cooperation partners in the Middle East.
This initially concerns cooperation in
themes like Energy, Transport and
Mobility, Industrial Innovation and
Information Technology. Our positive
experiences in Qatar reveal that there is
a demand for TNO services in the Middle
East. It is because we are able
to respond to local market needs that
markets for TNO emerge. In 2012 we will
be directing our vizier to China because
we are convinced of the opportunities that
lie there. TNO is developing a strategy
to assess these opportunities so that
our innovations can be successful there,
too, and that we can develop knowledge
domains further with the Chinese.
PRIDE
It is with a due sense of pride that we
look back on what TNO achieved in 2011.
The new strategy put in place at the
beginning of 2011 is bearing fruit:
successful impact for and with partners.
Financially speaking, there is also a
sense of satisfaction. Despite the poor
global economic situation and drastic
organisational change, we posted a
positive result of 0.4 million and incre-
ased income by 13.2 million.
We are most grateful to everyone who
has contributed, from both inside and
outside the organisation. Four people
are worthy of special mention: Marijn
Vlaming, Paul Poodt, Gertjan Burghouts
and Edsger Smits, four young researchers
that competed for the title Excellent
researcher of TNO. The drive, skill and
passion they showed when highlighting
their research during The World of TNO
Keeps Turning in November 2011 filled
us and the other TNO employees present
with a feeling of immense pride. If they
represent the future of TNO, then we are
well placed.
If we look to 2012, the eightieth year of
TNO, then it is a year in which the proof
of our competence must materialise
in terms of adaptability, positioning,
a strong offensive, and national and
international excellence. Because that
is how we will achieve innovations that
12/98
REPORT OF THE BOARD OF MANAGEMENT

have impact on the major societal and

economic challenges!

Results achieved by TNO in the past are

very much a guarantee of success in the
future.

TNO | Innovation for Life

TNO Board of Management

Jan Mengelers
Tini Hooymans
Jan Willem Kelder

TNO ANNUAL REPORT 2011 13/98

FINANCE AND
OPERATIONS

THE RESULT WAS 0.4 MILLION EUROS AND THUS 1.7 MILLION EUROS BELOW TARGET FOR 2011 AND DOWN
ON 2010 (2.4 MILLION EUROS). THIS IS ATTRIBUTABLE IN PART TO HIGHER PERSONNEL COSTS OF 8.0 MILLION
AND HIGHER MISCELLANEOUS OPERATIONAL COSTS OF 4.7 MILLION EUROS. AGAINST THIS WAS HIGHER NET
INCOME OF 5.2 MILLION EUROS AND HIGHER MISCELLANEOUS OPERATING INCOME OF 1.0 MILLION EUROS.
THE BUSINESS PLAN FOR 2012 TARGETS A SLIGHTLY HIGHER RESULT OF 2.2 MILLION.

INCOME million euros, largely because of higher miscellaneous costs of

The income of TNO the Organisation TNO including Group 5.0 million euros.
companies was 13.2 million euros higher than in 2010 at Depreciations fell by 3.6 million euros on 2010.
577.0 million euros. The income of the Organisation TNO fell by
13.9 million euros to 478.1 million euros, with net income down LIQUID ASSETS
by 24.2 million euros to 394.7 million euros on 2010. Income At the end of 2011 the balance of liquid assets stood at 140.1
from group companies within the 100% holding TNO Companies million euros, an increase of 7.4 million euros on year end
rose from 77.8 million euros in 2010 to 110.7 million euros in 2010. This rise can be attributed to an incoming cash flow from
2011, a rise largely attributable to the new group companies operational activities of 25.3 million euros against an outgoing
Triskelion, Homologations and Proquares. cash flow of 11.8 million euro along with a cash flow from
The income from government funding was 188.9 million euros, financing activities of 6.1 million euros.
5.9 million lower than in 2010 (194.8 million euros). This
fall came about by budget reductions implemented by the
government.
TNOs market income rose by 19.1 million euros to 388.1
million (2010: 369.0 million) and thus represented 67% of
the total income.
Income from home (industry and government) rose slightly on
2010 by 0.5 million euros to 242.0 million while income from
abroad, including TNO Group companies, rose by 14.6% to
146.1 million euros.

OPERATING COSTS
Personnel costs rose by 8.0 million euros, chiefly due to higher
costs of pensions of 4.3 million euros caused by an increased
contribution from 17% to 20%, higher costs of temporary
staffing of 3.8 million euros and higher personnel provisions of
1.3 million euros. The other operating costs increased by 4.7

TNO ANNUAL REPORT 2011 14/98

EMPLOYEES MAKE
THE DIFFERENCE

TNO IS AN ORGANISATION OF PROFESSIONALS. TO ACHIEVE THE NECESSARY IMPACT, TNO MAKES HIGH DEMANDS
OF ITS EMPLOYEES IN TERMS OF THEIR EXPERTISE, CREATIVITY AND CUSTOMER FOCUS, AMONG OTHER THINGS.
THE ENVIRONMENT TNO OFFERS IS FULL OF PROJECT CHALLENGES AND POSSIBILITIES TO COMBINE QUALITIES
AND DISCIPLINES. A PERIODIC EMPLOYEE COMMITMENT SURVEY (ECS) MEASURES THE EXTENT TO WHICH TNO
HAS SUCCEEDED IN CONNECTING THE AMBITIONS OF THE ORGANISATION AND THOSE OF THE EMPLOYEES. IN
PREPARING FOR THE THEMATICALLY-DRIVEN PROJECT ORGANISATION THAT TOOK EFFECT AT THE BEGINNING OF
2011, AN ECS WAS CARRIED OUT. TNO EMPLOYEES INDICATED THEIR SATISFACTION ABOUT THEIR OWN WORK AND
IMMEDIATE WORKING ENVIRONMENT. POINTS OF IMPROVEMENT INCLUDED TRANSPARENCY IN PROCESSES AND
SOLVING THE TEETHING PROBLEMS THAT ARE PART OF WORKING IN A NEW KIND OF ORGANISATION. THE RESULTS
WERE EXTENSIVELY DISCUSSED AT ALL LEVELS OF THE ORGANISATION AND LED TO IMPROVEMENT ITEMS FOR ALL
TNO ENTITIES. THE ECS WILL BE HELD AGAIN IN MID 2012 IN ORDER TO GAIN MORE INSIGHT INTO THE EFFECTS OF
THE ORGANISATIONAL CHANGE.

Number of employees 31-12-2011 31-12-2010 31-12-2009

Existing 3,403 3,776 4,061
Long-term 3,063 3,379 3,590
Fixed-term 340 397 471

OCCUPATIONAL HEALTH AND SAFETY
(ARBO)
2011 saw the introduction of TNOs own management model
principle whereby the manager and the employee are jointly
responsible for preventing absence from work where possible so
as to deal as effectively as possible with such absence. Where
necessary or preferred, the company doctor or other arbo expert
can provide assistance. HR staff (the HR business partners and
the absence team) also support the managers. During 2011
and throughout 2012 these own management models are being
evaluated. In 2011 a digital program to support the manager in
exercising the absence policy was developed. A simple program
on the PC can enable the manager to register absence within
his department, select a particular action and record it in the
digital dossier once performed. The program will be introduced
in 2012. These measures are aimed at reducing or stabilising
as much as possible absence due to illness, the length and
frequency of the absence. The rate of absence due to illness in
2011 was 3.79%.
In 2011 negotiations took place for a new collective health
insurance contract with Zilveren Kruis Achmea (ZKA), with it
due to be signed in 2012. By participating in this contract,
TNO employees profit from the collective discount on basic and
supplementary health insurance. This agreement means that
employees insured by ZKA and who have a work-related disorder
or where there is a threat of protracted absence due to sickness,
can make use of a number of selected (health)care providers
without the employee or TNO being liable for costs. The
employee is referred in consultation with the company doctor.

TNO ANNUAL REPORT 2011 15/98

EMPLOYEES MAKE THE DIFFERENCE
TERMS AND CONDITIONS
OF EMPLOYMENT
In 2011 TNO and the Central Works
Council had still not reached agreement
on the terms and conditions of
employment for 2012 and beyond.
Talks are ongoing. The intention and
expectation is to reach agreement in
the first quarter of 2012.
The possibility for additional pension
contributions takes effect from
1 January 2012. This enables employees
to more easily save for extra pension
and thus be more flexible in choosing
when to retire.
In 2011 a new extensive a-la-carte terms
and conditions of employment programme
was established and it allows employees
to make a choice throughout the year
rather than once a year, which was
the case with the old programme. The
choices are also sent to HR Services
digitally, which saves on a lot in terms
of paper, signatures and time.
EDUCATION AND
DEVELOPMENT
To realise the TNO strategy, the ongoing
and specific development of TNO
employees is a vital instrument, certainly
where it concerns the aim of being a
breeding pond and springboard for talent.
Innovation, strategic cooperation and an
TNO ANNUAL REPORT 2011
increasing emphasis on customer and
market focus to name but a couple of
examples require the knowledge, skills
and competencies of TNO employees to be
up to date. TNO aims to have a distinctive
level of knowledge; its an ambitious
target. The basis for this is an excellent
technology position and excellence in
the way every TNO employee acts. The
education and development of personnel
is part of the solution to realising
excellence and thus impact.
A focal point of the TNO strategy 2011-
2014 is to be a breeding pond and
springboard for talent. It is not about
quick-fix excellent performance but more
about ensuring that that excellence is
made available to society in the longer
term. The education and development
needed for this concerns not only intrinsic
and job-related training but development
interventions geared to employability,
career development and mobility. This is
evident in what TNO offers in the form of
career-related interventions whereby the
internal Career Development Centre plays
a central role. In 2011 there were around
160 career interviews, half of which led
to a referral to an external party for
supplementary career services (e.g.,
supervision or training). There is also
considerable attention for Personal
Effectiveness (PE), a standard component
of the introduction programme for new
employees and of the Talent Development
Programme (93 participants in 2011). In
addition, corporate development has
various specific PE training or courses
where PE is an important component.
Personnel development within TNO
gains real tangibility during the interview
between employee and manager. In these
RDC (Result, Development and Coaching)
interviews agreements are made
specifically for the employee in line with
the individual, team and organisation
targets. Development interviews may, for
example, focus on extending the qualities
and talents, of the further development of
competencies that are still lacking or are
poorly developed (like communication
or customer focus) or professional know-
ledge.
An important aid in making development
agreements is the TNO development
lines that provide a practicable tool for
all TNO employees to be able to identify
the development possibilities that exist
for them at TNO, the specific aspects and
the requirements in terms of behaviour,
person, professional competence, results
and experience. The suitability, level and
growth of individual employees are set
against these aspects. The development
lines are expressed in terms of core pro-
files and associated competencies,
professional competence and contribution
to the result. Each employee knows his
or her core profile; this is a recurring
element in assessment, target-setting
and development interviews.
The development lines were updated and
adjusted to the new TNO organisation
in 2011. Education and development
activities within TNO are geared to be able
to manoeuvre within and between the
development lines. Examples of
development programmes include: Quality
in the Spotlight for the development of
intermediate scientists (applied
technologies) in terms of visibility, profiling
and presentation; Advising with Impact
geared to the effective role performance
of intermediate consultants; and IPMA
training aimed at boosting the level of
project management within TNO. This is
just a small cross-section of the education.
In addition, there is a corporate
development range that offers even more
internal possibilities for TNO employees.
It can roughly be categorised as:
Training for special target groups (new
employees, starters (Talent Development
Programme), impats, potentials, etc.)
Competence and technical training/
education (like time management,
interview techniques, creativity, etc.)
Personal effectiveness
Career-related training
Training is, however, just a limited part
of the development options. In the
development programmes referred to
earlier in almost every case there is a
mix of development types whereby
training with a view to effectiveness
is supplemented with intervision, master-
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EMPLOYEES MAKE THE DIFFERENCE
apprentice learning, learning on-the-job
(practical assignments) and/or action
learning.
Coaching as a form of development is
worth a separate mention. This form of
development is in demand within TNO; it
makes an impression at individual level
and offers customisation to the coachee.
In 2010 and 2011 a selection programme
provided the basis for a pool of 25 high
quality coaches to be assembled. These
coaches can be deployed across TNO to
coach the competencies and personal
development of colleagues. In the second
half of 2011 the first internal coaching
programmes were completed and initial
results reveal a high degree of satisfaction
among the coachees. We see a rising
number of coaching applications and a
good matching of coaches and coachees.
The coach pool meets several times a year
in the framework of professionalisation
with a view to safeguarding and ensuring
continuity of the quality of the coaching.
In addition to the internal coaching pool
within TNO, external coaches are also
used. A carefully selected pool of eight
external coaches is active at executive
level. We are currently undergoing our
first experiences of this.
DIVERSITY
TNO remains convinced of the added
value of diversity in teams diversity in
TNO ANNUAL REPORT 2011
terms of gender, country of origin, etc.
Various studies reveal that mixed teams
are, for instance, more innovative and
create more value for the customer, and
they also suggest that a diversity policy
and specific action are needed to get
female talent to the top. In view of the
current lop-sidedness in this respect, TNO
has decided to invest in actions that will
boost this female share.
In recent years various initiatives have
been taken to boost the female share
and cultural diversity within TNO. In the
autumn of 2010 a Diversity steering
group was established, led by the Board
of Management, to promote and monitor
diversity within TNO. In 2011 the focus
was laid on boosting the share of women
in (the top of) the organisation and to ac-
tively draft a plan that contains details of
this ambition. TNO has committed to two
(external) initiatives in the field of diversity
to support the diversity policy.
TALENT TO THE TOP CHARTER
In 2008 TNO signed the Talent to the Top
charter. Talent to the Top was founded
in May 2007 to prompt the government,
industry and women themselves to
structurally encourage more female talent
to get to the top. TNO has committed itself
to its own target of having 25% women
in the top and sub-top of TNO. The Talent
to the Top Committee considers the top
to be: the Supervisory Board, Board of
Management and Directors of the 1st
and 2nd echelons. At the end of 2011
our percentage was 31% (+2.5% against
2010) women in the top and 16% (+1.4%
against 2010) in the sub-top, comprising
research managers and business line
managers. Developments in the area of
diversity within TNO focus on this sub-top.
Throughout TNO the share of women is
30% (-3% against 2010), and within the
potentials 36%.
GENSET
In 2010 a European project, genSET,
began. genSET, a project subsidised by
the European Commissions 7th
Framework Programme under Science &
Society, comprises a consortium of
partners with support from a network of
scientific institutes and organisations.
genSET creates a forum for dialogue
between science leaders, gender experts,
stakeholders and other scientific
decision-makers. Its aim is to break down
the barriers faced by women in partici-
pating in science and to make scientific
issues, options and vale system more
gender sensitive. TNO is taking part in
the de Science Leaders Panel project
and is the projects patron. The
European Science Foundation (ESF),
which is funding genSET, organised a
major European symposium in the
autumn of 2011 to highlight the
recommendations. TNO actively
contributed to the recommendations
and to the symposium. One member of
the Board of Management led a workshop
and participated in the main debate.
In 2012 genSET2 is implementing the
recommendations at universities and
institutes. TNO will again be making a
contribution to this.
TNO also cooperated in the annual
Women Matter survey by McKinsey.
The results will be published in 2012.
FEMALE NETWORK
The Diversity steering group has
encouraged the establishment of a
female network within TNO. Initial steps
taken in 2011 elaborate on the Female
Network that already existed within the
former core areas. A stimulating morning
organised with a group of around 30
graduate women clearly revealed a sense
of usefulness, need and pleasure of
having a female network. In 2012 this
energy will be translated into a
recommendation to the steering group
about the Diversity priorities, and activities
will be organised.
ACTIONS IN 2012
On the basis of the recommendations of
the Talent to the Top charter, genSET and
TNOs own observations, a plan of action
was detailed for Q3/4 of 2011 and for
2012. This plan was developed from the
defined by the Talent to the Top charter
as prerequisites for diversity policy and
these serve as a foundation for further
elaboration at TNO.
17/98
EMPLOYEES MAKE THE DIFFERENCE
CODES OF CONDUCT
TNO has long applied a code of conduct
that is the guideline for the behaviour of
TNO employees. In addition, TNO also has
a whistle-blower regulation. Seven core
values are contained in the code of
conduct they are aligned with the
strategy and desired organisational
development. These seven core values
are: honest, independent, professional,
socially committed, customer and impact
driven, innovative, connecting and
inspiring. In 2012 the TNO code of
conduct will be brought into line with
the renewed core values and updated
where appropriate in the context of
modified internal and external policy
and/or regulations. The core values are
discussed during the introduction course
for new TNO employees. 196 employees
followed such a course in 2011.
TNO ANNUAL REPORT 2011
YOUNG PEOPLE ARE THE
FUTURE
In 2011 TNO encouraged youngsters
to take an interest in research and
technology. These are all potential future
TNO employees and TNO people
generally like to pass on their knowledge
to youngsters. An example is the Summer
Camp for youngsters with behavioural
problems, where passion for work was
central and where TNO gave workshops
on passion for food research. One school
in Delft spend an afternoon exploring
sound in the TNO sound lab. TNO also
made a number of contributions to
childrens TV shows like Klokhuis and
news programmes for children.
Since 2010 TNO has been involved
in The Eerst De Klas (First The Class)
trainee programme that aims to produce
better teachers and leaders. It offers
participants the chance to gain
experience in education and industry.
In 2011 the trainees followed a master-
class and project management training
at TNO. In addition, two trainees, under
the supervision of TNO, began on the
development of an intervention to retain
enthusiasm and combat burn-out at a
high-school establishment. In 2012 a
second business case will be carried out
at TNO along with a masterclass. The
Eerst de Klas program is an initiative of
the Ministry of Education, Culture and
Science.
18/98
CORPORATE
SOCIAL RESPONSIBILITY
SUSTAINABILITY PLAYS A KEY ROLE IN THE CORE BUSINESS OF TNO. INTERNALLY, TOO, WITH A VIEW TO MAN AND
THE ENVIRONMENT. SEVERAL ASPECTS OF RESEARCH PERFORMED BY TNO ARE EXAMINED IN MORE DETAIL AS
WELL AS THE ENVIRONMENTAL FOOTPRINT, THE INTERNAL CSR POLICY AND THE DEVELOPMENT COOPERATION
PROGRAMME INNOVATION FOR DEVELOPMENT.
The strategic plan 2011-2014 focuses on innovating with impact
in society. Issues such as sustainability, health and scarcity are
vital elements. Sustainability is not a separate theme but acts
as an important driver through all the themes. A discussion held
with stakeholders on the basis of the materiality principle led
to the major research areas undertaken by TNO being placed
in a materiality matrix. Several aspects of TNOs research are
therefore detailed further below.
For instance, defence research within the Defence, Safety and
Security theme is specifically geared to the safety and protection
of the Dutch armed forces as well as to issues of public safety.
The research programme for the Ministry of Defence is the result
of close collaboration between the Ministry and TNO (see the
Council for Defence Research section for more details).
As for research on nanotechnology, TNO focuses on the
development of new materials and technologies at nanoscale,
which generates innovations like stronger materials and new
separation technologies (based on nanotags) that promote the
reuse of materials. Given the potential health hazards, though,
TNO also concentrates on the safety of innovative substances and
technologies in the working situation through the development of
methods to detect risks early and quickly.
Activities relating to the search for new fossil energy sources tend
to be subject to much debate, in contrast to the energy-saving
issue. Discussions centring on the production of shale gas
illustrate that TNO is keen to facilitate dialogue with society and
support arguments with facts so that there is a good foundation
for a discussion between supporters and opponents.
TNO ANNUAL REPORT 2011
Policy regarding research that involves animal testing is
specifically geared to reduction and research into alternative
methods (see later in this section for more details).
In order to develop agenda-making visions of key societal issues,
TNO has entered into a partnership, Strategy & Change, with
The Hague Centre for Strategic Studies (HCSS).
TNO has appointed a CSR officer to be responsible for the internal
CSR policy. The CSR officer is guided by a steering committee
comprising the director of Finance and Facilities (portfolio holder
for CSR) and two directors. At least once a year the TNO Board
of Management discusses the results achieved and CSR policy
adjustments with the steering committee. In October the Board
of Management signed the Corporate Social Responsibility policy
statement that describes how TNO deals with people, planet
and profit in the areas of ethics, working conditions, health and
safety, and the environment. As in previous annual reviews, we
have opted to use the GRI framework for sustainability reporting
(explained towards the end of this annual review).
THE TNO ENVIRONMENTAL FOOTPRINT
To gain insight into our environmental impact, an environmental
footprint was established for the first time at the beginning
of 2008. The environmental policy is geared to improving this
footprint for which there are four focal spearheads: energy and
buildings, mobility, sustainable purchasing, and energy and
ICT. Each spearhead has a significant influence of the
environmental footprint of TNO. Moreover, the measures to
19/98
CORPORATE SOCIAL RESPONSIBILITY
boost the environmental performance of
TNO can be embedded in the organisation
by spearhead as much as possible.
Sustainable purchasing, for instance, is
used by the purchasing organisation
while energy saving through ICT is
employed by the ICT services of TNO.
Within these spearheads TNO allows
plenty of scope for initiatives from within
the organisation. This has created
considerable support for CSR within
the organisation. Attracting employees
to CSR is important since together we
can make the difference. In 2011 we
continued to take initiatives to improve
TNOs environmental footprint in such
areas and so, due in part to this, the TNO
annual review, including the CSR report,
is digital.
The internal spearheads are often linked
to research performed by TNO. This is
described per topic.
ENVIRONMENTAL FOOTPRINT 2011
In 2011 an environmental footprint of
TNO was made for the entire production
chain of energy, transport and purchased
products and services. The method used
for this is similar to that used to deter-
mine embodied energy or a scope 3 CO2
footprint, but is broader since several
environmental effects are incorporated
such as the greenhouse gas effect,
acidification, overfertilisation and toxicity.
The environmental impact of energy,
TNO ANNUAL REPORT 2011
commuting and business travel is
determined according to the physical
consumption: traveller kilometres, kWh
electricity, m3 natural gas, etc. The
environmental impact of the other
categories is determined by the purchase
value and mean environmental impact
per euro. The approach and method for
determining the environmental footprint
is described in the background document
Notes to the Environmental Footprint
2011, at www.tno.nl/mvo.
The footprint is divided into a number
of categories. For instance, the category
Lab and desk research contains all the
environmental impact caused by the
production of paper, computers, copiers,
printers as well as the use of internet and
telephony. Different environmental ef-
fects that occur due to emissions in pro-
duction, travel or energy generation are
added up using shadow prices (based on
emission reduction costs). Shadow prices
are avoidance costs: costs of measures
to ensure that emissions do not exceed
the (statutory) threshold value.
By calculating the shadow costs for
these different environmental effects,
the component fields can be compared
and added up to a sum.
Energy use in the TNO buildings contributes
around a fifth of the total environmental
footprint of TNO. The environmental
impact of the production of goods and
FIGURE 1 ENVIRONMENTAL FOOTPRINT 2011
Electricity
Gas
Heating
Business travel (car)
OTHER ENERGY
Business travel (public transport)
Business travel (aviation)
1 4 Commuting
2 TRANSPORT
Transport services
3
Office equipment and ICT
Water and waste
Lab equipment
LAB- AND DESKRESEARCH
Hiring research and other personnel
Training
Printing and relations
1 Energy and buildings Hiring auxiliary services
2 Mobility
3 Purchased products Buildings
4 ICT and energy
services purchased by TNO is about m3 gas, an increase of 1.6 million kWh
three-quarters of the environmental of electricity and fall of 0.1 million m3
footprint. The residual share is due to gas than the previous year. The gas
business travel and commuting. The consumption of TNO resulted in
uncertainty in the calculation of the en- 13.4 kiloton of direct CO2 emission in
vironmental profiles has an influence on 2011. Since 2010 TNO has purchased
the relative contribution of the green energy that has a lower
categories1. environmental footprint compared to
energy generated from fossil fuels.
EEN OVERZICHT: MILIEUKENTALLEN The environmental benefit of green
Energy: In 2011 TNO used around 44 energy is not incorporated in the TNO
million kWh of electricity and 5.1 million environmental footprint to prevent any
1 
The uncertainty in the environmental profiles for energy and travel is about a factor of 1.5. The uncertainty in the
environmental profiles for goods and services purchased is more and is estimated at a factor of 2.5. To ensure that
changes over time are properly monitored, the environmental profiles per unit of product or service is the same for all
years.
20/98
CORPORATE SOCIAL RESPONSIBILITY
(hasty) interpretation that TNO uses no
electricity.
Transport: business travel in 2011
amounted to 13.5 million car
kilometres (2010: 14 million kilometres)
and around 23 million air kilometres 2)
(2010: 22 million kilometres), with car
commuting 20.4 million kilometres. In
total the transport of goods and
employees in 2011 amounted to 9 per
cent of the TNO environmental footprint.
Paper: in 2011 TNO used 76 tonnes of
paper, a fall of 24% on 2010.
The energy use, transport and purchased
products and services in 2011 represent
an embodied energy use of 3.2 PJ and
189,000 tonnes of greenhouse gas
emissions measured in CO2 equivalents.
These quantities are in line with 2010
quantities.
The environmental footprint of TNO rose
only slightly in 2011 compared with
2010, namely 0.5 per cent. In addition to
the changes in transport and energy use
stated earlier, in 2011 some 1% more
was spent on lab and desk research
requirements and on auxiliary services.
The environmental impact of depends
in part on our activities. Relatively
speaking, per euro of income, the
environmental impact of TNO in 2011
rose compared with 2010. The fall in
income was not compensated by a lower
2
To calculate air kilometres use is made of the mean flight kilometres from the Netherlands to every continent.
TNO ANNUAL REPORT 2011
environmental impact, hence the relative
rise.
WORKING ON A SMALLER FOOTPRINT
Naturally we want to reduce our
environmental footprint, which is why we
have established improvement measures
for the different spearheads. Below is a
review of measures taken within the four
spearheads. We also relate the
sustainability activities to the core
business of TNO. For the coming year it will
be important to define more tangible goals
so that we can more specifically monitor
the effect of the measures we have taken.
air from the labs in Zeist, research into
One of the new areas that has received
more attention during the past year at TNO
is the New Way of Working and a working
group has been established to come
up with a policy on this. The New Way of
Working has a direct influence on three of
the four spearheads, namely our buildings,
mobility and ICT.
ENERGY AND BUILDINGS
In 2010 an improvement plan was drafter
to boost the energy performance of TNOs
(owned) premises. In 2011 part of that
improvement programme was implemented
(use of smart meters, start of research/
advice on heat recapture from ventilation
FIGURE 2 THE ABSOLUTE AND RELATIVE ENVIRONMENTAL FOOTPRINT
SHADOW COSTS [EURO m.] SHADOW COSTS PER EURO INCOME
25 0,05
20 0,04
15 0,03
10 0,02
5 0,01
0 0,00
2011 2010 2009 2011 2010 2009
ENERGY TRANSPORT LAB- AND DESKRESEARCH OTHER TOTAL
is on the agenda for the coming years
broad application of LED lighting and along with key performance indicators
better roof insulation). Following on from (KPIs) designed to reduce energy use.
the pilot begun in 2010 at the Soesterberg Also in 2011 a start was made on TNO-
site, 2011 saw the start of a pilot at the wide energy monitoring, due to become
Zeist site to use LED light fittings in the available real-time at the start of 2012
offices and labs. The results of these via a webportal for all TNO buildings. The
pilots will be evaluated in 2012 so that a energy consumption at each TNO site will
plan can be drawn up to replace the light thus become visible and this will boost
fittings in the relevant TNO buildings in awareness of the need to save energy.
the coming years. In major maintenance In commencing the lease of office
and overhaul at the sites, replacement of buildings particular attention is focused
the fixed technical installations makes as on energy consumption, with a minimum
much use as possible of energy-efficient C label target.
systems. The use of geothermal heat pump (WKO)
installations is part of the redevelopment
The Real Estate Management department vision of the premises.
brought daily maintenance of buildings The Real Estate Management department
throughout the country within a perfor- participated with representatives from
mance contract as of 1 December 2011. HR and ICT in the Streaming Impact
As part of the contract energy saving programme concerning the New Way of
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CORPORATE SOCIAL RESPONSIBILITY
Working that has an impact not only on
how we work but also on buildings. If
the New Way of Working is introduced at
TNO, the buildings can in the future be
used more efficiently and flexibly (less
susceptible to the dynamics of the TNO
organisation) and thus more sustainably.
TNO is committed to energy saving
externally in the built environment
Energy in the Built Environment is not
only an issue in internal TNO operations
but it also plays an important role in the
research performed by TNO, especially
research in the themes Built Environ-
ment, Energy and Industrial Innovation
(see strategic plan 2011-2014). This
concerns both technological as well as
policy and social innovation. TNO also
develops energy-efficient buildings and
installations at building and neighbour-
hood level. Another focal area is efficient,
affordable solar cells.
In terms of chain innovation, in 2011
TNO took part in projects whereby chains
in the building and construction industry
lighten the burden of customers in the
area of energy saving (housing and the
small business market). SMEs are thus
supported in the areas of knowledge,
concept development, business strategy
and chain cooperation. Furthermore, it
involves developing concepts in
cooperation with external parties such
as major municipalities and the state for
TNO ANNUAL REPORT 2011
climate-resistant urban and infrastructure
design.
ENERGY AND ICT
In 2011 movable cupboards were located
at almost every TNO site for the purpose
of videoconferencing. These are highly-
accessible low-end systems that use the
Microsoft Livemeeting protocol. In 2012
we will be working to extend video-
conferencing possibilities.
In the autumn of 2011 Information
Services (IS) began to introduce the
new IT workplace for all employees, an
operation due to be completed in the
spring of 2012. This will reduce the
number of computers, more energy-
efficient models will be introduced,
the computer set-ups will ensure lower
consumption and many people will switch
from a desktop to a laptop computer,
which consume less energy. We now
have a contract with Viafrica to dispose
of outdated PCs and other hardware.
TNO will make the hardware that TNO
no longer uses available to Viafrica after
the data-carriers (hard disks) have been
removed. Viafrica will then cash in on
this hardware and invest the income in
societal knowledge-development projects
in Africa. More information about the
allocation of the funds can be found at
www.viafrica.org.
In the Main Equipment Room (MER)
Information Services has also taken
measures that have led to energy
savings. The number of servers has been
reduced and where possible physical
servers replaced by virtual servers. Also
the new data-storage systems are much
more energy-efficient than the old ones,
with the effect that electricity consumption
in the MER has fallen from 500 Ampere
to 360 Ampere, a saving of 28%. Because
less cooling capacity is needed at the
same time, actual savings are even higher.
Partly as a result of the consolidation to
the MER, the number of servers and
data-storage systems at various sites
has been reduced as has electricity con-
sumption locally, though there are
no figures available for the latter.
The introduction of the new IT workplace
within TNO enables every employee to
access the TNO network irrespective of
time and place. It is therefore expected
that people will more often and more
easily work from home or at a TNO site
closer to home. Moreover, data can be
accessed from everywhere so there is
no longer a need to print documents
for meetings. Also the increasing use
of tablets reduces the need for paper.
In 2012 use of tablets will be further
facilitated.
TNO contributes to sustainable ICT in
the outside world
TNOs day-to-day research also focuses
on this theme, with an inventory being
made of the ICT trends that can make a
tangible contribution to the MYA (multi-
year agreement) of the ICT sector (NB:
an MYA is a contract/covenant agreed in
a sector whereby the sector undertakes
to become 2% more energy-efficient
each year). TNO is also studying (for
AgentschapNL and SURF) when a cloud
solution can be considered green: what
features does the architecture of such a
system have, what requirements have to
be set?
SUSTAINABLE MOBILITY
TNO wants to reduce the environmental
impact of transport and mobility by
favourably influencing the amount and
type of travel of its employees.
Employees can use the service bicycles
to shuttle between TNO sites and NS
business cards to use public transport
for business travel. Different sites
participated in the summer in the bicycle
initiatives 2 on 5 (cyclists association)
or by bike works better (Haaglanden
region). At several sites electric bicycles
were made available to give TNO
employees the opportunity to become
acquainted with them. It is expected that
the new IT workplace will help reduce
business travel kilometres.
TNO is party to the mobility covenant
Accessible Haaglanden, Accessible
Utrecht and the Smart Work, Smart
Travel platform. The aim of the platform
22/98
CORPORATE SOCIAL RESPONSIBILITY
is to reduce traffic jams by organising work
and travelling differently. The goal of this
platform is for 1 million people to work
and travel smartly in 2012 (doubling to
2 million by 2015). TNO plays an active
role in the B50 (the 50 figurehead
companies involved in this platform).
TNO provides its knowledge and expertise,
applying the New Way of Working and
videoconferencing options to achieve
this goal. We participate in the Working
En Route initiative in which participants
make use of each others office facilities.
In the coming year we will actively inform
employees about what they can do and
the impact of their choice as well as
structurally investigate and encourage use
of bicycles at two sites. TNO is thereby a
pilot in a research project with the NISB
(Netherlands Institute for Sport and
Exercise).
TNO invests in a sustainable mobile
Netherlands
In its research and consultancy, TNO
investigates the possibilities of making
traffic more reliable, clean, safe and
quiet. In the strategic plan 2011-2014
commitment was expressed to help
halve emissions in the next 15 years
by performing research in the field of
clean vehicle technology and intelligent
transport systems, supporting the
implementation of new technology and
advice on legislation and policy.
TNO ANNUAL REPORT 2011
In 2010 TNO began the Dashboard New
Way of Working research project with
partners KPN, Philips, Rabobank,
Telewerkforum and Veldhoen + Company.
The aim of this project is to develop a
measuring instrument to ascertain the
integral effects of the New Way of
Working. In the Dashboard a relationship
is laid between specific HNW measures
like working at home, the use of smart-
phones and management through trust
on the one hand, and corporate targets
like productivity, work-home balance and
CO2 emissions on the other. By making
the effects of the New Way of Working
evident, TNO wants to bring the success-
ful propagation of the New Way of Working
in the Netherlands that bit closer.
SUSTAINABLE PURCHASING
Sustainable purchasing is fully integrated
in all TNO-wide purchase procedures
and processes. Sustainability criteria
(established on the basis of the
recommendation criteria of Agentschap.
NL) are an important aspect in drafting
functional and technical specifications.
In the selection and allocation criteria
sustainability is prominent in many cases.
A few examples of contracts realised in
2011:
Workplaces (energy label EPEAT Gold /
Energy Star 5, more than 50%
recyclable, income from depreciated
IT workplace hardware to the Viafrica
foundation, with more than 80% of
hard disks recycled)
Natural gas (sustainability programme
incorporated, execution during 2012)
Leadership Development programme
(accommodations with active CSR
policy, Greenkey hallmark)
Christmas hampers (sustainable/-
biological contents, donation per
hamper to ICCO organisation)
In 2011 the sustainable purchasing
measures were evaluated. This revealed
that after the successful integration of
sustainable purchasing in the procedures
and processes, quantification of the
results in the longer term still require
attention. This will gain further shape
in 2012, with sustainability results
structurally incorporated in the utilisation
and perpetuation of purchasing results in
the longer term.
INNOVATION FOR DEVELOPMENT (I4D)
How can you run a household on less than
2 dollars a day? How are we going to deal
with an increasing demand of 70% for
food in the next forty years? These are
questions that concern the populations
of Madagascar, Ghana and many other
developing nations every day. TNOs
response is to develop sustainable
innovations. These are relevant because
by 2040 our world population will have
risen to nine billion people, which will
increase consumption and results in the
scarcity of natural materials. Climate
change, wastage of material and a lack of
agro and industrial infrastructures will
see regions in developing countries
especially being hit by scarcity of income,
food and other basic necessities of life.
The challenge we are posed in the 21st
century is to strengthen strategies
for sustainable growth and livelihood.
Sustainable innovation geared to
development is the key to rising to this
challenge. The TNO Innovation for
Development programme develops
solutions that are in tune with the market
and promote the economy and social
prosperity of 4 billion people with the
lowest incomes (less than $ 2 per day)
always in cooperation with local and
European public and private partners.
This approach enables the utilisation
of the enormous economic and social
potential of these 4 million people. It
may be a high-tech development such
as the biogas socket in Bangladesh or
the low-tech innovation like the hand tool
in Ghana; solutions that are affordable,
adequate and encourage enterprise.
The programme comprises more than
20 projects, mainly in Africa and Asia,
with a focus on four areas
Food and agriculture
Renewable energy and climate
ICT
Health
TNO contributes its expertise in technical
and social innovations, the development
of business models and transition
management. Our projects are listed at
23/98
MAATSCHAPPELIJK VERANTWOORD ONDERNEMEN
www.tno.nl/I4D.
All of our projects are embedded in
the core business since boosting the
economy and the quality of society as a
whole is one of the driving forces behind
TNO. For industrialised or developing
countries. In 2011 the budget was some
2.5 million euros, 1 million of which TNO
invested, and the rest by market partners.
The coming year will see TNO invest the
same amount and the total budget is
expected to be 3 million euros. Eighty
TNO employees are involved (part-time)
in the Innovation for Development pro-
gramme. They are all inspired by being
able to help alleviate global problems
such as poverty, they learn about complex
system innovations and are well
positioned in the international arena.
The 25 project managers have been
specially trained to innovate in developing
countries with a view to the culture, ethics
and safety. If they travel to developing
countries, they are first trained in acting
safely and ethically. Below two projects
are described in brief.
Flying Food
The rising demand for food for a growing
world population requires innovation and
sustainable solutions. We are working
with partners to breed crickets in Kenya
for human food. Insects have a high
nutritional value and are a source of not
only protein but also amino acids and
TNO ANNUAL REPORT 2011
minerals. In the Netherlands insects
are bred but not eaten. In Africa they
are eaten but not yet bred. TNO merges
these worlds in order to accelerate the
innovation in both worlds. Smallholders
become producers, distributors and
consumers in a new value chain.
Breeding insects encourages local
enterprise and improves access to
nutritious food.
ICT business models for
the Base of the Pyramid
Information and communication technology
(ICT) has great potential to offer the very
poorest essential services like education,
healthcare, agro or financial services.
Together with partners TNO has studied
almost 300 existing ICT initiatives in
developing countries. A success factor
appears to be a strong customer focus,
entrepreneurship and good cooperation
capacities. The 15 most innovative
market-oriented business models proved
that it is possible to scale up and revealed
that ICT can leverage improvements in
the living standard of the Base of the
Pyramid. The results of this inspiring
study were launched on 14 September
in the Nieuwspoort international press
centre in The Hague.
INVOLVING EMPLOYEES IN CSR
Everyone at TNO can contribute to CSR;
this is joint effort by all. The aspect
must be negotiable and fit in with the
daily work of the employee. The art is
to appeal to people in such a way that
awareness is translated into action. CSR
is therefore a fixed component of the
Net-werken@TNO programme for new
employees to stimulate awareness and
discussion about the subject. The CSR
ambassadors (the CSR network) met
twice to help shape the direction and to
contribute internally to tangible action.
On the Sustainability Day breakfast
sessions were organised to inspire TNO
employees to consciously think about
what he or she can contribute. Among
other things, this led to choosing to use
the Treemagotchi@work tool to involve
TNO employees more widely in CSR. In
2011 a start was made on implementing
this online tool to prompt, in a nice easy
way, to undertake major and minor deeds
that contribute to making TNO more
sustainable. During 2012 the tool will be
rolled out within TNO.
There will also be more focus in 2012 on
using the knowledge of TNO employees
for the organisation itself in such a way
that we also learn from it and develop that
knowledge further. Some of this knowledge
development will involve sustainable
building, encouraging the use of bicycles,
sustainable mobility, influencing behaviour
via ICT and healthy food.
ANIMAL TESTING AND ALTERNATIVES
TNO wants to contribute to the societal,
scientific and economic need for the
better prediction for humans in respect of
the safety and efficacy of food, medicines
and other chemicals. For some research
questions (such as food quality and the
safety of medicines and drugs) animal
testing is necessary but at the same time
TNO is committed to refining, reducing
and replacing (3Rs) animal testing, making
this a strategic priority in the strategic
period 2011-2014. TNO also wants to
respond to the demand from society
for more transparency and openness
about animal testing in dialogue with
stakeholders and through participation
in the public debate on animal testing.
TNOs contribution to reducing the number
and distress of animal testing is evident
in our goal of having developed at least
10 new innovative 3R methods by 2014,
with at least six being used by third
parties and one accepted by the regulatory
bodies. To achieve this target we invest
in the development of better prediction
for humans that can be broadly
implemented and accepted. In 2011 the
development of some 10 alternatives
were started and a number, such as the
TNO Intestinal Model (TIM), is also being
used by third parties. In addition to our
goals concerning the development of
alternatives for animal testing, our
animal testing policy covers the execution
of animal testing and care for the lab
animals as well as communication about
animal testing in general. In order to
make these points visible and verifiable,
24/98
CORPORATE SOCIAL RESPONSIBILITY

it is important that there is a level of that have contributed to acceptance

steering, hence the establishment of
an internal steering group in 2011.
There are several spearheads that TNO
wants to give extra attention to in the
coming year, and for each spearhead
a plan has been drawn up to ensure
quality.
Effective and demand-oriented breeding
and use of lab animals
More substantiation of internal and
external communication
Stimulating and professionalising inter-
vision, education and refresher courses
Excelling in the quality of the animal
testing set-up and reporting
Gaining accreditation from the
Association for the Assessment and
Accreditation of Laboratory Animal Care
(AAALAC)
by the OECD in 2011. TNO encourages
customers and regulatory authorities
to implement this directive.
Another example in the field of
communication is the online publication
of the first TNO animal testing annual
review 2010, which offers transparency
about the animal testing carried out by
TNO and the work we do to develop and
use alternatives. The animal testing an-
nual review will also be published online.
More information about the content
of our animal testing policy, the animal
testing annual review and the alternatives
we develop can be found at
www.dierproeven.tno.nl.

A tangible example of excelling in the

quality of the animal testing set-up, also
an example of our aim as described in
the 3Rs proposition, is our contribution to
a new OECD (Organisation for Economic
Cooperation and Development) directive
concerning reproduction toxicology, which
describes a new study structure for the
Extended first generation reproduction
toxicity test that provides more information
about the harmfulness of substances
on the progeny and which can enable a
40% reduction in the number of animals
needed. Between 2007 and 2010 TNO
has undertaken studies with the RIVM

TNO ANNUAL REPORT 2011 25/98

INDEPENDENT
ASSURANCE REPORT
TO THE READERS OF THE ANNUAL REVIEW 2011 OF THE NETHERLANDS ORGANISATION FOR APPLIED SCIENTIFIC
RESEARCH TNO:
The Board of Management of the Netherlands Organisation for
applied scientific research TNO (hereafter: TNO) has asked us
to provide Assurance concerning the information in the sections
Corporate Social Responsibility and Employees make the
difference (hereafter: the CSR sections) of the Annual Review
2011. The Board of Management is responsible for drafting the
SCR sections, including selecting the intrinsic topics covered.
Our responsibility is to deliver an assurance report for the CSR
sections.
SCOPE OF OUR ASSIGNMENT
Our assignment was geared to obtaining a limited measure of
assurance that the information contained in the CSR sections,
in all those aspects of material import, is correctly represented.
The work performed in obtaining a limited measure of assurance
focused on establishing the plausibility of information and
thus does not have the same degree of depth that obtaining a
reasonable measure of assurance would entail. We provide no
assurance about the feasibility of the goals, expectations and
aims of TNO.
REPORTING CRITERIA USED BY TNO
TNO uses the Sustainability Reporting Guidelines (G3) of the
Global Reporting Initiative (GRI) as well as its own criteria to
draft the CSR sections. These are elaborated in Corporate Social
Responsibility and in the GRI table.
TNO ANNUAL REPORT 2011
THE ASSURANCE STANDARD WE HAVE USED
We have performed our assignment in accordance with the
Standard 3410N Assurance assignments for social reports
of the Royal Netherlands Institute of Chartered Accountants.
One of the requirements of this standard is that the members of
the assurance team have the specific knowledge, competencies
and professional skills needed to understand the information in
the CSR sections, to be able to identify and gather the requisite
assurance information and that the members comply with the
requirements of the Ethical Code for Professional Accountants of
the IFAC, including independence.
WHAT WE HAVE DONE
The work we have done has included:
Performing a media and internet analysis of social issues for
TNO to deepen our insight into the relevant sustainability topics
and issues during the reporting period.
Interviewing the management responsible, the CSR officer and
employees responsible for supplying the information in the CSR
sections.
Assessing the set-up of systems and processes for information
gathering and processing, including the aggregation of data to
information in the CSR sections.
Assessing internal and external documentation on the basis of
part observation to determine whether the information in de
CSR sections is sufficiently supported.
Establishing the consistency of the information in the CSR
sections with the other information in the TNO Annual Review
2011.
26/98
INDEPENDENT ASSURANCE REPORT

During our investigation we discussed the necessary amend-

ments in the CSR sections with TNO and have established that
these amendments were properly incorporated in the definitive
version.

OUR CONCLUSION
Our work reveals no evidence that the information in the CSR
sections, in every aspect of material import, is incorrectly
represented according to the G3 Guidelines of the Global
Reporting Initiative.

COMPARATIVE INFORMATION HAS NOT BEEN EXAMINED

No assurance assignment has been performed for the
comparative CSR information concerning previous years as
contained in the CSR sections. Therefore we can give no
assurance about this CSR information included for the sake
of comparison.

OBSERVATIONS
Without compromising the scope of our assurance report, we
would like to draw the readers attention to the following finding:
TNO has brought tangibility to its CSR policy in the past year
by stipulating this in a Corporate Social Responsibility policy
statement. We instruct TNO to link goals and KPIs to this so
that the progress of these goals can be monitored. We also
instruct an evaluation of the current methodologies (like the
environmental footprint model) to provide sufficient insight to
enable adjustments to be made.

Rotterdam, 16 mei 2012

KPMG ACCOUNTANTS N.V.

T.A. Kalmr RA

TNO ANNUAL REPORT 2011 27/98

REPORT OF THE COUNCIL
FOR DEFENCE RESEARCH

THE COUNCIL FOR DEFENCE RESEARCH (RDO) ESTABLISHES POLICY FOR THE DEFENCE COMPONENT OF THE
TNO POLICY. THE STRATEGIC PARTNERSHIP, CONCERNING AN AGREED PACKAGE OF DEFENCE-SPECIFIC EXPERTISE
AREAS, IS THE CORNERSTONE OF THE RELATIONSHIP BETWEEN DEFENCE AND TNO, WITH EXTERNAL AND
INTERNAL SECURITY BECOMING INCREASINGLY INTERWOVEN FOR BOTH THE DEFENCE AND SECURITY RESEARCH
AT TNO AND INCREASINGLY FOR THE MINISTRIES OF DEFENCE AND SECURITY AND JUSTICE.

Defence is faced with serious cutbacks; Aprils policy document
was subtitled Smaller armed forces in a turbulent world.
This document is unchanged in championing the focus on
innovation and a high-tech armed force. The new Strategy,
Knowledge and Innovation agenda, entitled Anticipate and
innovate in a changeable world, shows the way. Security and
Justice is currently hard at work on its innovation agenda and
preparing the introduction of the new National Police. At the
same time new opportunities are being offered by the top
sectors and industry. Given the alignment with its policy targets,
Defence also wants to participate in the top sectors where there
is potentially 16 million euros available annually for innovation
funds for joint investment projects with industry for the High
Tech Systems and Materials and Water top sectors. Defence has
a long tradition of cooperation with research organisations and
industry (internationally, too) in the so-called Golden Triangle.
With the transition to the new TNO organisation, RDO redefined
the management supervision of defence research at the beginning
of 2011. This was followed by a second change, which saw the
number of employees in the defence component rise by more
than 100 (fte) as part of a TNO-wide re-clustering of expertise
groups. This now includes activities in the field of cybersecurity.
Both the administration and the composition of the defence
component of TNO will be evaluated further in 2012.
The Rijswijk and Ypenburg facilities will remain until further
notice and a move to Cromstrijen has been definitively
scrapped. However, certain laboratory activities in Rijswijk are
scheduled to move to Ypenburg in the long term with the
corresponding office activities to The Hague. In good consultation
with Defence, the chemical test activities of TNO have been
privatised in the new TNO company ProQares BV.
Two major projects in 2011 reveal how cooperation with industry
fulfils the needs of Defence. The new LFAS (Low Frequency
Active Sonar) system for M-frigates will see the Netherlands
leading the world next year in terms of anti-submarine defence.
The hardware for the new system is being supplied by Ultra
Electronics and Maritime Systems (UEMS) from Canada, TNO is
responsible for the signal processing and Defence is the system
integrator. This teaming makes the purchase of the LFAS system
cheaper and performance better than off-the-shelf solutions.
In 2013 the first LFAS sonar system was installed on HMS van
Amstel. The need for an update was urgent. Submarines are
becoming ever quieter and the Netherlands Royal Navy is
increasingly operating in coastal waters, which hinders detection.
LFAS is able to transmit acoustic signals in every direction and
once the echoes are received, the signal processing begins to
detect and classify targets, long a world-class knowledge area of
TNO. This is vital since LFAS receives so many echoes that it is
absolutely crucial for those echoes to be filtered and classified.
Replacement of the F-16 jet fighter is a key project for the
Netherlands Royal Air Force. The F-35 JSF equipped with a
25 mm cannon is the primary candidate at the moment but the
problem is the lack of munitions available in the market that

TNO ANNUAL REPORT 2011 28/98

REPORT OF THE COUNCIL FOR DEFENCE RESEARCH

comply with Dutch requirements (including no armed uranium).

So Defence asked TNO and Rheinmetall Waffe Munition Schweiz
(RWMS) to co-develop suitable munitions. The FAP (Frangible
Armour Piercing) projectiles, which are brittle and fracture into
smaller pieces within a target, work in a very complex way but
accumulated knowledge has given TNO the capacity not only
to evaluate such munitions but also to help develop them. TNO
and partner RWMS were thus able to come up with entirely new
25 mm FAP munitions. So if the JSF is eventually purchased,
the necessary munitions will be ready on time. Not only that but
the American air force is currently testing these munitions, and
contributing to part of the costs. And should the Americans and
other countries decide to actually purchased these munitions in
the future, then for every cartridge sold, royalties will flood in to
TNO (for reinvestment in defence research) and Defence.

TNO ANNUAL REPORT 2011 29/98

CORPORATE GOVERNANCE 2011

CORPORATE GOVERNANCE STANDS FOR THE GOOD AND EFFICIENT CORPORATE MANAGEMENT OF AN ORGANISATION
THAT, MOREOVER, ACTS HONESTLY, RESPONSIBLY AND TRANSPARENTLY UNDER PROPER SUPERVISION. TNO
SUBSCRIBES TO AND APPLIES THESE PRINCIPLES. THIS IS EVIDENT FROM THE PRESENCE AND APPLICATION OF
A CODE OF CONDUCT, A COMPLAINTS SCHEME, REGULATIONS AND A WHISTLEBLOWER REGULATION. IN 2011
TNO ALSO STROVE TO OPTIMISE ITS CORPORATE GOVERNANCE.

TNO BOARD OF MANAGEMENT (RVB)
The RvB is charged with managing the organisation, which
includes responsibility for defining and realising the objectives,
policy, strategy and results that derive from this. The RvB is
collectively accountable.
COMPOSITION OF THE TNO BOARD OF MANAGEMENT
There was no change to the three members in 2011.
five special closed sessions of the RvT. Both the remuneration
committee and the selection and appointments committee met
twice.
In its meeting of 14 December the RvT discussed its own
performance and that of the RvB. On 16 March the RvT approved
the annual accounts for 2010 and discharged the RvB for the
execution of its management and policy in 2010.

THE TNO SUPERVISORY BOARD (RVT)
The duty of the RvT is to supervise the policy of the RvB. Super-
vision in this respect is geared to the realisation of objectives,
the strategy, financial reporting and compliance with law and
legislation. The RvT also supports the RvB through advice.
The RvT may appoint committees from its midst and charge
these with tasks specified by the RvT. At the beginning of 2011
there were two committees in this respect: the Remuneration
Committee and the Selection and Appointments Committee.
In 2011 these two committees were merged into the Selection
and Remuneration Committee. The RvT also appointed an Audit
Committee in 2011 to enable more adequate supervision of
financial affairs and risk management. For both committees
regulations were drawn up and the TNO Supervisory Board
Regulations in which these committees are stated were modified
accordingly.
The RvT met five times in 2011 and a few members twice
attended the Central Works Council meetings. There were also
COMPOSITION OF THE TNO SUPERVISORY BOARD
The RvT comprises seven members. In March 2011 the second
term of office expired for the RvT chairperson, Ms J.M. Leemhuis-
Stout. By Royal Decree Dr. C.A. Linse was appointed to chair
the RvT as of 1 March 2011 and Mr H.W. Broeders reappointed
as member of the RvT following the expiry of his first term, and
Lady I.H.J. Vanden Berghe became a member of the RvT on
1 February 2011.
ORGANISATION REGULATIONS
TNO regulations concerning the RvB, RvT and strategic advisory
councils collectively form the Organisation Regulations of TNO.
Since 2011 these have also contained a mandate regulation
whereby the RvB has, with a view to the new strategy and
structure of TNO by virtue of its statutory authorisation, granted
other people in the organisation the authorisation to represent
TNO. In 2011 this regulation, the mandate regulation, took
effect. The mandate regulation accurately describes the
authorisations granted and such that the system of checks
and balances remains safeguarded. The new regulation also

TNO ANNUAL REPORT 2011 30/98

CORPORATE GOVERNANCE 2011

states that the accountant will each year (starting in 2012) also
audit compliance with the mandate.

ACCOUNTABILITY
In respect of government funding, by virtue of the TNO Act
accountability is provided in advance through the submission
by the RvB of the Strategic Plan, for a four-year period, and the
budget for the coming year, to the minister of the intermediating
ministry, being the Ministry of Economic Affairs, Agriculture and
Innovation (EL&I). Accountability is retrospective by virtue of this
Act through the submission by the RvB of the annual review and
annual accounts of the previous year to this minister. The RvT
has to approve these documents.

The annual accounts are accompanied by a statement from an

accountant designated by the RvT concerning the faithfulness
of the information. The RvT consulted with the accountant about
the accountants report also in the absence of the RvB. In 2011
the European tender for the assignment of the accountant was
completed, whereby KPMG will be responsible for the audit for
five years from 2011, with two options to extend by a year.
The accountant also undertakes a separate audit in respect of
legitimate collection and expenditure according to the audit
protocol agreed in the past between the Ministry of Education,
Culture and Science and TNO.

DELFT, 21 MARCH 2012

On behalf of the TNO Supervisory Board,
Dr. C.A. Linse, chairperson

TNO ANNUAL REPORT 2011 31/98

CONSOLIDATED After appropriation of profit na resultaatbestemming (in EUR x thousand)

BALANCE SHEET 31-12-2011 31-12-2010

PER 31 DECEMBER 2011 Fixed assets

Intangible fixed assets 1 1,948 1,674
Tangible fixed assets 2 220,698 244,802
Financial fixed assets 3 6,541 7,917

229,187 254,393

Liquid assets
Stocks 1,152 1,200
Receivables 4 86,787 87,205
Cash 5 140,069 132,646

228,008 221,051

Total 457,195 475,444

Equity:
- General reserve 6 122,979 125,808
- Earmarked reserves 7 67,051 63,756

190,030 189,564

Minority interests 898 1,756

Equalisation account investment funds 8 39,374 47,944
Provisions 9 19,306 23,523
Long-term debt 10 21,047 22,148
Short-term debt 11 186,540 190,509

Total 457,195 475,444

TNO ANNUAL REPORT 2011 32/98

CONSOLIDATED (in EUR x thousand)

PROFIT-AND-LOSS 2011 2010

ACCOUNT 2011 Income 12 563,796

Other operating income 13 21,947 20,903

Operating income 598.956 584,699

Direct project costs 14 -79,591

Personnel expenses 15 -364,264
Depreciation intangible fixed assets -444 -1,134
Depreciation tangible fixed assets 16 -34,078
Extraordinary devaluations tangible fixed assets 17 -
Other operating expenses 18 -107,542 -102,844

Operating expenses -599.043 -581,911

Operating result -87 2,788

Interest income 2,187 1,890

Interest charges -1,265 -795

Result from ordinary operations before taxes 835 3,883

Taxes -409 -436

Results financial fixed assets 19 244 -707

Result from ordinary operations after taxesn 670 2,740

Minority interests -239 -318

Net result 431 2,422

TNO ANNUAL REPORT 2011 33/98

CONSOLIDATED PROFIT-AND-LOSS (in EUR x duizend)
ACCOUNT 2011
2011 2010

Appropriation of profit:
Net result 431 2,422

Allocation to:
- appropriated reserve operating risks civil - -
- appropriated reserve operating risks Defence - -
- appropriated reserve development cooperation - -
- appropriated reserve building work Defence -4,456 -4,482
-4,456 -4,482
Withdrawal from:
- appropriated reserve operating risks civil - -
- appropriated reserve operating risks Defence - -
- appropriated reserve development cooperation - -
- appropriated reserve building work Defence 1,161 465
1,161 465
Result after transactions earmarked reserves -2,864 -1,595

Transaction general reserve 2,864 1,595

- -

TNO ANNUAL REPORT 2011 34/98

CONSOLIDATED CASH CONSOLIDATED CASH FLOW SUMMARY (in EUR x thousand)

FLOW SUMMARY 2011 2010

AND SUMMARY TOTAL Net result 431 2,422

RESULT 2011 Minority share in net result 239 318

Group result 670 2,740

Depreciations on intangible and tangible fixed assets 30,949 33,112
Results of participations incorporated in the result 895 -199
Results of disposals of fixed assets 641 3,972
Transaction provisions -4,217 -3,253
Transaction working capital, excluding cash -3,851 9,894
Dividends received 192 215

Cash flow deriving from operational activities 25,279 46,481

Investments in intangible fixed assets -1,402 -939

Investments in tangible fixed assets -21,587 -27,851
Investments in financial fixed assets -964 -1,300
Disinvestments in intangible fixed assets - -
Disinvestments in tangible fixed assets 9,482 213
Sale of participations and redemptions received 2,719 -519

Cash flow deriving from investment activities -11,752 -30,396

Investment contributions received/repaid -5,386 4,763

Loans received 495 12,725
Loan redemptions -1,248 -12,204

Cash flow deriving from funding activities -6,139 5,284

Cash flow for financial year 7.388 21,369

Liquid assets as of 1 January 132,646 111,106

Cash flow for financial year 7,388 21,369
Exchange rate differences 35 171

Liquid assets as of 31 December 140,069 132,646

TOTAL OVERVIEW 2011 2010

Consolidated net result after taxes 431 2,422

Reserve conversion disparities 35 171

TNO ANNUAL REPORT 2011 Total 466 2,593 35/98

NOTES TO THE CONSOLIDATED
ANNUAL ACCOUNTS 2011
PRINCIPLES
1.1 GENERAL
TNO connects people and knowledge to create innovations that
sustainably boost industrial competitiveness and the wellbeing of
society.
The statutory domicile of TNO is Delft.
Reporting period
These annual accounts have been drafted over the reporting
period of a calendar year.
Standards used
TNO uses the guidelines for drafting the annual accounts of
TNO as contained in the TNO Guidelines for Financial Reporting
of the Minister of Education, Culture and Science.
The TNO Guidelines for Financial Reporting adhere to Statute 9,
Book 2 of the Dutch Civil Code. In a supplementary amendment
made by the minister of Education, Culture and Science the
Guideline for Annual Reporting 271 Personnel remuneration
has been declared not applicable for TNO.
The principles used for the valuation of assets and liabilities and
determination of the result are based on historical costs.
1.2 PRINCIPLES FOR THE VALUATION OF ASSETS AND
LIABILITIES AND THE DETERMINATION OF THE RESULT
Unless otherwise stated, assets and liabilities are stated at
nominal value.
An asset is included in the balance sheet if the probability exists
that the future economic benefits will accrue to the company and
that its value can be reliably determined. A liability is included in
the balance sheet if the probability exists that its settlement will
be coupled to an exit of funds and that the size of that amount
can be reliably determined.
Income is included in the profit-and-loss account if there has been
an increase of the economic potential along with an increase
TNO ANNUAL REPORT 2011
in an asset or a decrease in a liability, whereby the size can be
reliably determined. Expenses are processed if there has been a
decrease of the economic potential along with a decrease in an
asset or an increase in a liability, whereby the size can be reliably
determined.
If a transaction leads to virtually all future economic benefits or
virtually all economic risks concerning an asset or liability being
transferred to a third party, the asset or liability will no longer be
included in the balance sheet. Furthermore, assets and liabilities
will no longer be included in the balance sheet from the moment
that they do not comply with the probability conditions of the
future economic benefits and reliability of the determination of
the value.
The costs are calculated for the period to which they pertain.
The annual accounts are presented in euros, the functional
currency of the company. All financial information in euros is
rounded off to the nearest thousand.
The drafting of the annual accounts demands from the
management that they make assessments, estimates and as-
sumptions that affect the application of the principles and the
reported value of assets and liabilities, and of the income and
expenses. The actual results may vary from these estimates.
The estimates and underlying assumptions are constantly
assessed. Revised estimates are included in the period in which
the estimate is revised and in future periods in which the revision
has implications.
1.3 PRINCIPLES FOR CONSOLIDATION
The consolidated annual accounts contain the financial data
of the TNO organisation and its group companies as well as
other legal entities over which full authorisation or centralized
management can be exercised. Group companies are
participations in which the organisation has a majority holding
or exercises a decisive influence on policy in one way or another.
In determining whether a decisive influence on policy can be
exercised, this concerns financial instruments that bear potential
36/98
NOTES TO THE CONSOLIDATED ANNUAL ACCOUNTS 2011
voting rights and which can be directly
exercised. Participations held for the
purpose of disposal are not consolidated.
Newly acquired participations are
incorporated in the consolidation from
the moment that a decisive influence
on policy can be exercised. Disposed
participations are incorporated in the
consolidation until the moment that this
influence ends.
In the consolidated annual accounts the
mutual debt, receivables and transactions
are eliminated. The group companies are
fully consolidated, whereby third party
minority holdings are expressed.
A summary of the group companies
included in the consolidation as well as
the non-consolidated participations is
contained in the notes to the single
annual accounts on pages 41 to 42.
For individual (majority) participations
(S&D Solutions B.V., BiosparQ B.V.,
ConsumersVoice B.V., TNO Science &
Technology Consultation Co. Ltd.,
SoLayTec B.V. and ProQares B.V.) there
is no consolidation due to the relatively
modest scope of the operating activities.
1.4 PRINCIPLES FOR CONVERTING
FOREIGN CURRENCY
Transactions in foreign currency
Transactions in foreign currencies are
converted to the respective functional
currency of the group companies at the
exchange rate valid on the transaction
date. Monetary assets and liabilities in
TNO ANNUAL REPORT 2011
foreign currencies are converted per
balance sheet date to the functional
currency at the exchange rate valid on
the transaction date. The currency
differences are included in the profit-and-
loss account as an expense.
Foreign operations
The assets and liabilities of foreign
operations, including goodwill and real
value corrections upon consolidation,
are converted into euros at the exchange
rate valid on the reporting date. The
income and costs of foreign activities
are converted at the average exchange
rate for the reporting period.
Currency conversion disparities are
processed in the conversion disparities
reserve. If a foreign activity sold in full
or in part, the respective amount from
the conversion disparities reserve is
transferred to the profit-and-loss account.
1.5 FINANCIAL INSTRUMENTS
Financial instruments are processed
at real value upon first incorporation,
after which they are incorporated in the
manner described below.
Loans extended, (other) receivables,
loans taken out, creditors and other
payable items
These financial instruments are valued
at amortised cost price on the basis of
the effective interest rate. For short-term
receivables and liabilities where no
explicit interest rate is calculated and the
term is short, the discount is generally
only slight. For these items the nominal
value is applied to substantiate the
amortised cost price principle.
For loans extended and (other) receivables
the valuation is adjusted where necessary
for extraordinary value reduction losses.
Derivative financial instruments
Derivative instruments are valued at cost
price or lower market value unless hedge
accounting below the cost price hedge
model is applied.
TNO makes only limited use of forward
currency transactions to hedge risks
related to purchase and sale transactions.
If currency contracts are drafted to cover
monetary assets and liabilities, cost price
hedge accounting is applied. Hedge
accounting is used to ensure that the
results accounted in the profit-and-loss
account as a consequence of the
conversion of monetary items are
compensated by value amendments to
the currency contracts at the money rate
on the reporting date. The difference
between the money rate on the date on
which the currency forward contracts is
agreed and the forward rate is amortised
via the profit-and-loss account over the
term of the currency forward contracts.
One group company of TNO uses
interest rate swaps to hedge currency
risks deriving from interest rate changes
on long-term loans. If interest rate swaps
are agreed to hedge interest rate risks,
cost price hedge accounting is applied
to ensure that the interest charges
accounted in the profit-and-loss account
are not subject on balance to changes in
the interest rate position. The accounted
interest charges thereby comprise the
balance of the interest paid to financiers
and the income and expenses deriving
from the agreed interest rate swaps.
If cost price hedge accounting is applied,
valuation is first made at real value. So
long as the derivative instrument relates
to hedging the specific risk of a likely
future transaction, no revaluation of
this instrument occurs. As soon as the
expected future transaction results in
accounting in the profit-and-loss account,
the profit or loss associated with the
derivative instrument is processed in the
profit-and-loss account. If the hedged
position of an expected future transaction
results in the incorporation in the balance
sheet of a non-financial asset, the
company adjusts the cost price of this
asset to the hedging results not yet
processed in the profit-and-loss account.
A loss of a percentage greater than the
size of the derivative instrument against
the hedged position is processed directly
in the profit-and-loss account on the basis
of cost price or lower market value.
If derivative instruments expire or are sold,
the hedging relationships are terminated.
The cumulative profit or cumulative loss
not yet processed in the profit-and-loss
37/98
NOTES TO THE CONSOLIDATED ANNUAL ACCOUNTS 2011
account up until that moment is included
in as a transitory item post in the balance
sheet until the hedged transactions occur.
If the transactions doe not as expected
occur, the cumulative profit or the
cumulative loss is transferred to the profit-
and-loss account.
TNO documents the hedge relationships
in specific hedge documentation and
periodically verifies the effectiveness of
the hedge relationships by establishing
that there is no question of overhedging.
1.6 INTANGIBLE FIXED ASSETS
Goodwill is defined as the positive
difference between the price acquired for
the participations and the interest of the
TNO organisation in the net real value
of the acquired identifiable assets and
liabilities of the acquired party less the
cumulative depreciations and extraordinary
devaluations. Depreciation of the goodwill
occurs over the expected economic life-
time of the acquired participation and,
in principle, does not exceed five years.
The other intangible fixed assets concern
knowledge or costs of research and
development, licence rights and software
programs purchased from third parties.
Capitalisation occurs only insofar as it
can be reasonably expected that these
are covered by future income. Valuation
is by acquisition price. Depreciation occurs
pro rata of the expected income, but no
more than five years.
TNO ANNUAL REPORT 2011
1.7 TANGIBLE FIXED ASSETS
The tangible fixed assets are valued by
acquisition price or, if produced in house,
by production price less cumulative
depreciations based on the expected
economic lifetime and extraordinary
value depreciations.
The depreciations are calculated as a
percentage of the acquisition price
according to the linear method on the
basis of the economic lifetime. There is
no depreciation of company premises
and on tangible fixed assets under
construction and prepayments on tangible
fixed assets.
1.8 FINANCIAL FIXED ASSETS
Participations whereby significant influence
on business and financial policy can be
exercised are valued according to the
equity mutation method on the basis of
net equity value. In determining the net
equity value the valuations principles of
the TNO organisation are used.
Participations with a negative net equity
value are valued at zero. When the
company stands surety for the debt of
the respective participation a provision
is formed primarily charged to the
receivables on this participation and
secondarily under the provisions
equivalent to the share in the losses
made by the participation or expected
payments by the TNO organisation on
behalf of this participation. Participations
in which no significant influence can be
exercised are valued at acquisition price
or extended lower operating value.
The loans to non-consolidated
participations are included at amortised
cost price on the basis of the effective
interest rate method less extraordinary
depreciation losses.
Dividends are accounted in the period in
which they are payable. Interest income
is accounted in the period to which they
relate, taking account of the effective
base rate of the respective asset item.
Any profits or losses are accounted under
financial income and expenses.
1.9 EXTRAORDINARY DEVALUATIONS
Fixed assets with an extended lifetime
must be assessed by extraordinary
devaluations if changes or circumstances
occur whereby it appears that the book
value of an asset will not be recovered.
The recoverability of assets in use is
determined by comparing the book value
of an asset with the estimated cash value
of the future net cash flows the asset is
expected to generate.
If the book value of an asset is higher
than the estimated cash value of future
cash flows, extraordinary devaluations are
accounted for the difference between the
book value and realisable value.
1.10 STOCKS
The raw and auxiliary materials are valued
at acquisition price or lower value of
revenue. In the valuation of the stocks
account is taken of any devaluations at
balance sheet date.
1.11 WORK IN PROGRESS
The work in progress concerns
assignments. The valuation of work in
progress comprises the costs directly
related to the assignment (such as
personnel costs for employees working
directly on the assignment and costs for
raw and auxiliary materials), the costs
attributable to the assignment activities
in general and specific to the assignment
as well as other costs that are payable
contractually by the customer.
Expenditure related to the assignment
costs that lead to performance to be
carried out after the balance sheet date
are processed as assets if there is the
probability that they will generate income
in a subsequent period. A deductible
provision is made where necessary in
work in progress to cover expected losses.
The work in progress is reduced by the
invoiced payments in advance.
1.12 RECEIVABLES
The principles for the valuation of
receivables are described under the
section financial instruments.
1.13 EQUITY
Financial instruments considered in
terms of the economic reality to be equity
instruments are presented under equity.
38/98
NOTES TO THE CONSOLIDATED ANNUAL ACCOUNTS 2011
Financial instruments considered in terms
of the economic reality to be a financial
liability are presented under debt. Results
in relation to these financial instruments
are accounted in the profit-and-loss
account as costs or income.
Earmarked reserves
On the basis of article 22 of the TNO Act
and articles 4 and 5 of the TNO Guide-
lines for Financial Reporting earmarked
reserves can be set aside for future
spending or expenses or to hedge
economic and technical risks. Withdrawals
are charged to earmarked reserves in the
appropriation of the result and may only
take place insofar as these correspond
with the purpose of these reserves.
The appropriated reserve for operating
risks civil is to hedge economic and
technical risks. In appropriating the
result the TNO Board of Management
designates a percentage of both
government and third-party assignment
amounts to the reserve each year until
the maximum amount of the reserve is
reached.
A maximum of EUR 9.1 million was
agreed with the government.
The appropriated reserve for operating
risks Defence is based on specific
agreements with the Ministry of Defence
and hedges risks related to executing
additionally funded defence assignments.
A maximum of EUR 2.5 million was
TNO ANNUAL REPORT 2011
agreed with the Ministry of Defence. The
TNO Board of Management consults with
the TNO Council for Defence Research
on the amount to be added to the reserve
each year in appropriating the result of
the Defence, Safety and Security core
area until the maximum amount of the
reserve is reached.
The appropriated reserve for Defence
building work hedges future investments
in renovation and/or new building pro-
jects. Additions to and withdrawals from
this reserve occur annually in the
appropriation of the result on the basis
of specific agreements with the Ministry
of Defence.
1.14 MINORITY INTERESTS
The minority interests are valued at
the share of third parties in the net
equity value, in correspondence with
the valuation principles of the TNO
organisation.
1.15 EQUALISATION ACCOUNT
INVESTMENT FUNDS
Funds provided by the government or
third parties to compensate the TNO
organisation for investing in an asset
are shown as a liability on the balance
sheet and systematically credited to the
profit-and-loss account during the period
in which the asset is used.
1.16 VOORZIENINGEN
A provision is included in the balance
sheet if:
there is a legally enforceable or actual
liability resulting from a past event; and
of which a reliable estimate can be
made; and
an outflow of funds is likely to be
needed to settle that liability.
Provisions are valued at either the nominal
value of the spending likely to be needed
to settle the liabilities and losses or the
cash value of the spending.
The provision for social liabilities is to
hedge past, present and future payments
to ex-employees and employees of the
TNO organisation resulting from TNO
terms and conditions of employment. That
part which relates to pensions already
taken is based on actuarial calculations,
with a discount baseline of 4%.
The provision for claims is for any liabilities
deriving from existing legal actions.
The provision for reorganisations hedges
the costs related to existing and imminent
(partial) reorganisations.
The provision for capital outflows hedges
the expected costs of the intended
dissolution of employment contracts with
employees.
The provision for major maintenance is to
equalise the costs for major maintenance
to real estate that is the property of the
TNO organisation and its group companies
based on a multi-year maintenance plan.
1.17 PERSONNEL REMUNERATION/
PENSIONS
TNO has several pension schemes, the
main one being incorporated within the
TNO Pension Fund Foundation and
qualifying as committed pension scheme.
The Minister of Education, Culture and
Science instructed the Guideline for
the Annual Reporting 271 Personnel
remuneration not to apply to the TNO
organisation.
As a result of this instruction the liabilities
related to pension scheme contributions
are charged as an expense in the profit-
and-loss account in the period in which
the amounts are due.
The basis is that the pension expenditure
during the reporting period is the same
as the pension contributions owed to the
pension fund. Insofar as the premiums
owed at balance sheet date are not yet
paid, a liability is incorporated for this.
If upon balance sheet date the
contributions already paid exceed the
premiums owed, a transitory active entry
will be incorporated to the extent to which
there will be a repayment by the fund or
settlement with future premiums owed.
Furthermore, as of balance sheet date
there will be a provision included for
existing obligations in respect of the fund
for employees. If it appears likely that in
order to settle those obligations there
will be an outflow of funds and a reliable
assessment of the size of those obligations
can be made. The incidence or otherwise
39/98
NOTES TO THE CONSOLIDATED ANNUAL ACCOUNTS 2011
of additional obligations will be assessed
according to the execution agreement
with the fund, the pension agreement with
employees and other (explicit or implicit)
pledges to employees. The provision will
be valued at the best estimate of cash
value of the amounts needed to settle the
obligations at of balance sheet date.
In the event of a pension fund surplus
existing at balance sheet date, a
receivable will be included if the company
has authorisation to use this surplus and
the likelihood is that this surplus will flow
to the company and the receivable be
reliably established.
1.18 SHORT-TERM DEBT
The valuation of short-term debt is
explained under the section on financial
instruments.
1.19 INCOME ACCOUNTING
Income is the total of:
assignment income;
government funding.
Assignment income includes invoiced
amounts for work performed, after
deduction of any value added tax due,
and work in progress.
Given that there is a regular flow of
projects spread evenly throughout the
year and that these are completed
within a year, profit is taken on work
in progress upon delivery.
Government funds are split into
TNO ANNUAL REPORT 2011
knowledge as capital within the themes,
knowledge as capital across the themes
(KAVOT) and policy and application
oriented knowledge investments. These
funds are accounted as income pro rate
of the work performed.
Direct project costs include the tangible
costs (including outsourced work) that
can be directly attributed to a project.
1.20 GOVERNMENT SUBSIDIES
Government subsidies are initially included
in the balance sheet as income received
in advance as soon as reasonable
certainty exists that these will be received
and that the TNO organisation will comply
with the attached conditions. Subsidies
to compensate the costs incurred by
the TNO organisation are systematically
included as income in the profit-and-loss
account in the same period as when the
costs are incurred.
For subsidies to compensate investment
in an asset see Equalisation account
investment funds.
1.21 SHARE IN THE RESULT OF
COMPANIES IN WHICH THERE IS A
PARTICIPATION
The share in the result of companies in
which there is participation relates to
the share of the TNO organisation in
the results of these participations.
Results for transactions whereby assets
and liabilities are transferred between
the TNO organisation and the non-
consolidated participations and mutually
between non-consolidated participations
are not accounted insofar as these cannot
be considered realised.
The results of participations acquired or
disposed of during the financial year
are processed in the result van the TNO
organisation from the moment of
acquisition or disposal.
1.22 TAXES
TNO, TNO Companies B.V. and its 100%
Dutch subsidiaries are not subject to
corporation tax due to article 2, clause
7 of the Corporation Tax Act.
TNO Companies B.V. has 99% participation
in TNO Holdings B.V. which along with
all its Dutch subsidiaries is subject to
corporation tax. In addition, the
subsidiaries domiciled abroad are subject
to the profit tax applicable in the country
of domicile. Taxes concern the profit and
deferred taxes in the reporting period.
The taxes are included in the profit-and-
loss account, except where these pertain
to items directly included in the equity,
in which case the tax is processed in the
equity.
The tax due and creditable over the
financial year is the expected payable tax
on taxable profit over the financial year
calculated according to the tax rates valid
on the reporting date or already tangibly
established on the reporting date along
with any corrections to the tax owed in
previous years.
For deferred taxes a provision is made
for temporary differences between the
book value of assets and liabilities for the
purpose of the financial reporting and the
fiscal book value of those items.
A deferred tax receivable only is included
insofar as it is likely that in the future
taxable profit will be available to offset
the temporary difference. Deferred tax
receivables are revised at each reporting
date and reduced insofar as it is not likely
that the corresponding tax benefit will be
realised.
1.23 CASH FLOW SUMMARY
The cash flow summary is drafted on the
basis of the indirect method. Cash flows
in foreign currencies are converted to
euros using the average conversion rates
for the respective periods.
1.24 DETERMINING REAL VALUE
Several principles and notes in the annual
accounts of TNO require the determination
of the real value of both financial and
non-financial assets and liabilities. For
valuation and information acquisition
purposes the real value is determined
by the following methods.
(Other) receivables
The real value of trade and other
receivables is estimated at the cash value
of the future cash flows.
40/98
NOTES TO THE CONSOLIDATED ANNUAL ACCOUNTS 2011

Derivatives
The real value of currency forward
contracts and interest rate swaps is based
on the quoted market price is available,
the real value is estimated by the
expected cash flows discounted at going
interest rates in which a surcharge is
contained to calculate the present value.

Non-derivative financial liabilities

The real value of non-derivative financial
liabilities (loans) is determined only for
the purpose of acquiring information and
is calculated on the basis of the cash
value of future redemptions and interest
payments discounted at the interest rate
at reporting date.
If applicable further information about the
principles for determining the real value
is stated in the section of these notes
specifically related to the respective asset
or liability.

TNO ANNUAL REPORT 2011 41/98

NOTES TO THE 1 INTANGIBLE FIXED ASSETS
Changes in the intangible fixed assets in 2011
(in EUR x thousand)

CONSOLIDATED
BALANCE SHEET Balance at 31-12-2010
Goodwill Software Totaal

Acquisition price 896 6,027 6,923

Cumulative depreciations and devaluations -314 -4,935 -5,249

Book value 582 1,092 1,674

Transaction book value

Investments 505 897 1,402
Transaction consolidations 39 - 39
Disinvestments -723 - -723
Depreciations 69 -513 -444

-110 384 274

Balance at 31-12-2011
Acquisition price 57 6,754 6,811
Cumulative depreciations and devaluations 415 -5,278 -4,863

Book value 472 1,476 1,948

TNO ANNUAL REPORT 2011 42/98

NOTES TO THE CONSOLIDATED BALANCE SHEET 2 TANGIBLE FIXED ASSETS
Changes in the tangible fixed assets in 2011

Real estate Fixed Technical Inventory Total

and buildings technical equipment
installations

Balance at 31-12-2011
Acquisition price 219,306 150,255 205,163 19,282 594,006
Cumulative depreciations and devaluations -123,193 -79,540 -162,930 -12,788 -378,451
Assets under construction and development 2,393 25,955 899 - 29,247

Book value 98,506 96,670 43,132 6,494 244,802

Transaction book value

Investments 7,103 6,422 34,730 922 49,177
Transaction consolidations - -96 -640 -4 -740
Disinvestments -7,457 -1,103 -2,599 -103 -11,262
Depreciations -4,729 -9,422 -18,080 -1,458 -33,689
Assets under construction and development -2,393 -24,704 -493 - -27,590
-7,476 -28,903 12,918 -643 -24,104

Balance at 31-12-2011
Acquisition price 218,952 155,105 211,258 19,843 605,158
Cumulative depreciations and devaluations -127,922 -88,589 -155,614 -13,992 -386,117
Assets under construction and development - 1,251 406 - 1,657

Book value 91,030 67,767 56,050 5,851 220,698

The depreciation tangible fixed assets item in the profit-and-loss account also includes the release from the equalisation account
investment funds. The book value of the tangible fixed assets per 31 December 2011 includes real estate, buildings and fixed techni-
cal installations at EUR 29.2 million (2010: EUR 41.0 million), of which TNO is exclusive economic owner.

TANGIBLE FIXED ASSETS

Depreciation percentages used 2011 2010

Real estate nihil

Buildings 2 2
Fixed technical installations 6 6
Renovations 6 6
Computer equipment 33 33
Technical equipment 20 20
Inventory 10 10
TNO ANNUAL REPORT 2011 43/98
NOTES TO THE CONSOLIDATED BALANCE SHEET 3 FINANCIAL FIXED ASSETS

Non-consolidated participations Other Total

loans

Equity Loans
share

Balance at 31-12-2010 5,266 2,196 455 7,917

Transactions:
Investments and extended loans 352 612 - 964
Disinvestments and redemptions 62 -961 -300 -1,199
Devaluations -54 - - -54
Result participations -895 - - -895
Dividend -192 - - -192

Balance at 31-12-2011 4,539 1,847 155 6,541

Participations includes the participations of TNO and TNO Companies B.V. Of the loans EUR 1.7 million have a term of longer than
one year. Of the other loans none have a term in excess of one year. The list of participations, in which TNO participates indirectly
and directly, is contained on pages 67 to 70.

TNO ANNUAL REPORT 2011 44/98

NOTES TO THE CONSOLIDATED BALANCE SHEET 4 RECEIVABLES

31-12-2011 31-12-2010
Receivables relating to assignments 69,402 64,772
Receivables on participations 639 907
Deferred tax receivables - -
Other receivables 10,704 15,161
Transitory assets 6,042 6,365

Total 86,787 87,205

Of the receivables EUR 2.8 million (2010: EUR 2.9 million) have a term exceeding one year.

5 CASH
Cash includes deposits up to EUR 65.0 million (2010: EUR 10.0 million) that expire in tranches up to December 2012. The other cash
is immediately callable.

6 GENERAL RESERVE

2011 2010

Balance at 1 January 125,808 127,232

Reserve conversion disparities 35 171
Appropriation of profit -2,864 -1,595

Balance at 31 December 122,979 125,808

7 EARMARKED RESERVES

Stand per Onttrokken Toegevoegd Stand per

31-12-2010 in 2011 in 2011 31-12-2011

Operating risks civil 9,075 - - 9,075

Operating risks Defence 2,500 - - 2,500
Building work Defence 52,181 1,161 4,456 55,476

Total 63,756 1,161 4,456 67,051

TNO ANNUAL REPORT 2011 45/98

NOTES TO THE CONSOLIDATED BALANCE SHEET 8 EQUALISATION ACCOUNT INVESTMENT FUNDS

2011 2010

Balance at 1 January 47,944 46,302

Funds designated for tangible fixed assets -5,386 4,763

42,558 51,065

Released to the result -3,184 -3,121

Balance at 31 December 39,374 47,944

9 PROVISIONS

Balance per Withdrawn Added Released Balance per

31-12-2010 in 2011 in 2011 in 2011 31-12-2011

Social liabilities 2,204 468 127 - 1,863

Claims 800 - - - 800
Reorganisations 8,772 6,721 4,984 1,435 5,600
Capital outflows 1,637 1,042 1,743 498 1,840
Loan participations 138 - - - 138
Major maintenance 1,962 1,651 1,651 - 1,962
Other 8,010 1,383 1,014 538 7,103

Total 23,523 11,265 9,519 2,471 19.306

Of the provisions circa EUR 9.1 million are long-term (2010: EUR 9.0 million).
The provision for social liabilities concerns capital outflow costs, supplements to WAO payments as well as future payments deriving
from pension rights to past employment years not financed elsewhere.
The provision for claims covers the estimated liabilities deriving from expected submitted unsettled claims and is valued per
(potential) claim at the estimated future expenditure including external processing costs.
The reorganisation provisions mainly concern agreed departure schemes with ex-employees. The provision for cash outflows relate
to the expected costs relating to the proposed dissolution of employment contracts with employees.
The provision for major maintenance at the end of 2011 is based on maintenance to be carried out in relation to the multi-year
maintenance plan 2010-2013.

TNO ANNUAL REPORT 2011 46/98

NOTES TO THE CONSOLIDATED BALANCE SHEET 10 LONG-TERM DEBT
Loans:
Loans from credit institutions
Medium-term bank credit
Other loans
Total
Of the long-term debt EUR 6.2 million exceeds one year and is less
than 5 years. The rest of the long-term debt of EUR 14.8 million
has a term of more than 5 years.
Holland Metrology N.V. has a 20-year linear mortgage of
EUR 13 m to fund building work/renovation in Delft. Holland
Metrology N.V. had paid off EUR 4.9 m. of this in 2005-2010.
The short-term part of the loan is EUR 0.7 m. and is presented
under the short-term debt (loans bank). The interest is 4.58
5.7%. The mortgage lender has stated that Holland Metrology
N.V. (and its subsidiary NMi Nederland B.V.) may pay dividend
and the loan provided by TNO (subordinated on behalf of the
mortgage lender) may be redeemed at a solvency of at least
35%. The loan provided by TNO is incorporated here as part
of the capital base. Agreed securities additional to the
aforementioned solvency requirement are:
First mortgage on the real estate Thijsseweg 11 in Delft and
Dordrecht premises;
Right of lien on receivables;
Joint and several liability to the bank of NMi Certin B.V. and
Verispect B.V.
Holland Metrology N.V. has a 2-year linear mortgage of
EUR 12 m to fund the building work for Euroloop in Europoort.
The interest rate is equivalent to the 3-month Euribor plus a
surcharge of 2.4%. Redemption is in two annual instalments,
the first of EUR 600,000 has been paid and the second
instalment of EUR 600,000 is due on 1 July 2011 and is presen-
ted under the short-term debt. Holland Metrology N.V. has the
TNO ANNUAL REPORT 2011
31-12-2011 31-12-2010
20,614 22,148
433 -
- -
21,047 22,148
right to continue the loan for an amount of up to
EUR 10,800,000 for a maximum term of 18 years under the
terms and conditions valid at that moment.
At the end of 2008 APP Beheer B.V. agreed a new 20-year
mortgage of EUR 2,300,000 (from Rabobank) to fund land and
buildings on the Moerdijk industrial site in Klundert. The interest
rate is 3-month Euribor plus 1.3%. Securities provided are:
mortgage to premises in Klundert, right of lien to stocks,
inventory and receivables. APP had redeemed EUR 326,400
in 2008-2011. The short-term part of the loan is EUR 115,200
and is presented under the short-term debt.
In 2010 APP Beheer B.V. agreed a new 20-year mortgage of
EUR 725,000 to fund buildings at the Moerdijk industrial site
in Klundert. The interest rate is 3-month Euribor plus 1.85%.
Securities provided are: mortgage to premises in Klundert, right
of lien to stocks, inventory and receivables. APP had redeemed
EUR 134,000 in 2010-20111. The short-term part of the loan
is EUR 36,000 and is presented under the short-term debt.
In 2011 ABN-AMRO extended surety credit (EUR 496,000 to
Batavia Bioservices B.V. at an interest rate equivalent to 3
months Euribor with a 1.75% surcharge. Securities provided are:
surety of EUR 125,000 and a right of lien on stocks, inventory
and receivables. The loan will be repaid in seventeen successive
quarters of EUR 29,117, for the first time on 1 October 2012.
The long-term portion was EUR 433,125 on 31-12-2011. EUR
61,875 is presented as short-tem.
47/98
NOTES TO THE CONSOLIDATED BALANCE SHEET 11 SHORT-TERM DEBT

31-12-2011 31-12-2010

Bank loans 1,982 1,634

Creditors 32,624 41,279
Debt to participations 66 134
Taxes and social insurance premiums 15,220 16,141
Pensions 43 37
Holiday pay liabilities 9,492 9,322
Liabilities for untaken leave 20,898 20,643
Other debt 39,782 37,519
Deferred liabilities 32,100 29,025
Work in progress 34,333 34,775

Total 186,540 190,509

WORK IN PROGRESS

31-12-2011 31-12-2010

Cumulative costs minus provisions for losses and risks 425,667 389,049
Minus cumulative declared instalments -460,000 -423,824

Total for work in progress -34,333 -34,775

Balance of work in progress > 0 80,473 70,412

Balance of work in progress < 0 -114,806 -105,187

Total for work in progress -34,333 -34,775

The deferred liabilities largely concern deferred government funding and prepayments received for specific research projects.

TNO ANNUAL REPORT 2011 48/98

NOTES TO THE CONSOLIDATED BALANCE SHEET
FINANCIAL INSTRUMENTS
General
In the normal operations TNO uses a range of financial
instruments that TNO exposes to market and/or credit risks.
These are financial instruments incorporated in the balance
sheet and currency future contracts to hedge future transactions
and cash flows. TNO does not trade in these financial derivatives
and has procedures and codes of conduct to limit the size of
the credit risk for every party or market. For payments owed but
not fulfilled by a counterparty to TNO any resultant losses are
limited to the market value of the respective instruments. The
contract value of the fictive principal amounts of the financial
instruments are just an indication of the extent to which such
financial instruments are used and not of the amount of the
credit or market risks.
Interest rate risk
The interest rate risk is limited to any changes in the market
value of loans taken or extended for which there is a preference
for a fixed interest rate for the entire term. If a loan has no fixed
interest rate, TNO policy is to use derivative financial instruments
to manage (interim) interest rate fluctuations. The loans are held
until the end of the term.
Credit risk
TNO runs a credit risk deriving from transactions and this risk
pertains to the loss that can arise if a counterparty defaults.
This risk is limited by the many and varied parties on which
TNO has receivables. A concentration of credit risks is only
present in respect of the geographical spread of the outstanding
receivables, which are concentrated in the Netherlands.
Market value
The market value of most of the financial instruments, including
extended loans, (other) receivables, cash and creditors plus other
payable items, accounted in the balance sheet approximate their
TNO ANNUAL REPORT 2011
book value. The market value of the other financial instruments
accounted in the balance sheet can be illustrated as follows:
The market value of the receivables on participations cannot be
determined reliably enough. For further information refer to point
3 of the notes.
The long-term loans are valued at nominal value. The real value
of the loans may deviate from the nominal value but cannot be
determined reliably enough.
Of the outstanding USD and GBP currency forward contracts the
market value is EUR 1.4 million and the contract value EUR 1.3
million.
Of the outstanding USD and YEN currency forward contracts the
market value is EUR 2.1 million and the contract value EUR 2.0
million.
To hedge the interest rate risk for the long-term mortgage of
EUR 19.5 million Holland Metrology NV has engaged in a total
of EUR 19.5 million interest rate swaps with a term varying from
1 December 2018 (EUR 2.25 and 5.85 million) to 1 July 2025
(EUR 11.4 million). The interest rate swap of EUR 2.5 million
has a fixed coupon rate of 3.73%, the interest rate swap of
EUR 5.85 million has a fixed coupon rate of 4.85% and the
interest rate swap of EUR 11.4 million has a fixed coupon rate
of 4.73%, all at a 3-month Euribor. The principal amount of the
interest rate swap contracts runs synchronous with the agreed
redemption timetable of the loans to which these contracts relate.
The market value of these 3 contracts at the end of 2010 was
EUR 3.1 million negative.
49/98
NOTES TO THE CONSOLIDATED BALANCE SHEET

Assets and liabilities not contained in the balance sheet Provisions have been taken for all the disputes and legal actions
Per 31 December 2011 the total operational lease liabilities on the basis of the nominal value of the expenditure expected to
over the period 2012 until 2016 was circa EUR 7.7 million be necessary to settle the liabilities and losses.
(2010: EUR 7.7 million), EUR 3.5 million of which is due in 2012
(2010: EUR 3.7 million) and EUR 4.3 million due in 1 to 5 years
(2010: EUR 4.0 million).

The total rent liabilities is EUR 103.9 million (2010: EUR 121.2
million), of which EUR 18.8 million (2010: EUR 17.3 million) has
a term of less than one year, EUR 46.4 million (2010:
EUR 55.8 million) is due in 1 to 5 years and EUR 38.7 million
(2010: EUR 48.1 million) is due after 5 years.

The total bank guarantees provided is EUR 8.0 million (2010:

EUR 9.2 million).

Per 31 December 2011 the het total investment liabilities

for tangible fixed assets stood at EUR 5.4 million (2010:
EUR 2.7 million).

The total credit facility and bank guarantee facility are EUR 46.4
million (2010: 47.1 million) and EUR 11.0 million (2010: EUR
11.0 million) respectively.

Other securities and stipulations for the total credit facility are:
Negative pledge/pari passu and cross default statement.
Positive/negative mortgage statement in respect of the real
estate in Eindhoven.

At the end of 2011 the total suretyships stood at EUR 2.9 million
(2010: EUR 1.8 million).

TNO is involved in a number of disputes and legal actions con-

nected to normal operations. TNO does not expect the Total
resultant liabilities to have any tangible effect on the financial
position.

TNO ANNUAL REPORT 2011 50/98

NOTES TO THE 12 INCOME (in EUR x thousand)

CONSOLIDATED 2011 2010

PROFIT-AND-LOSS Income from assignments 388,087 369,035

ACCOUNT 2011 Knowledge as capital:

Within the themes 44,806 47,028
Across the themes (KAVOT) 26,983 27,261

Policy and application oriented knowledge investments 117,133 120,472

Total 577,009 563,796

The income includes the transaction work in progress of EUR 0.4 million negative (2010: EUR 11.5 million negative)

The income is divided by themes/expertise centres as follows:

2011 2010

Healthy Living 74,790 -

Industrial Innovation 86,480 -
Defence, Safety and Security 96,782 -
Built Environment 48,622 -
Information Society 47,565 -
Energy 53,567 -
Transport and Mobility 40,987 -
Technical Sciences 7,761 -
Behavioural and Societal Sciences 4,260 -
Earth, Environmental and Life Sciences 9,564 -
Core area income - 515,799

Other income TNO 7,727 1,511

Income TNO Companies B.V. and its group companies 110,721 77,821
Internal income -11,817 -31,335

Total 577,009 563,796

TNO ANNUAL REPORT 2011 51/98

NOTES TO THE CONSOLIDATED ASSIGNMENTS
PROFIT-AND-LOSS ACCOUNT 2011
2011 2010

The specification of assignment income for relevant categories:

naar relevante categorien luidt:

Domestic
Government 94,400 97,367
Industry 147,615 144,181

Total Domestic 242,015 241,548

Foreign
International organisations 37,663 25,746
Other 108,409 101,741

Total Foreign 146,072 127,487

Total 388,087 369,035

13 OTHER OPERATING INCOME

2011 2010

Result on sale of tangible fixed assets -1,152 -966

Other income 23,099 21,869

Total 21,947 20,903

Other income includes income from licences and patents, non-project related income and externally charged costs.

TNO ANNUAL REPORT 2011 52/98

NOTES TO THE CONSOLIDATED 14 DIRECT PROJECT COSTS
PROFIT-AND-LOSS ACCOUNT 2011
2011 2010

Accommodation and energy 235 115

Materials 13,341 15,472
Use of technical resources 3,926 5,135
General management costs 13,181 14,563
Work outsourced 47,101 40,636
Other expenses 9,866 3,670

Total 87,650 79,591

15 PERSONNEL EXPENSES

2011 2010

Wages and salaries 248,707 247,333

Pension expenses 33,611 29,330
Other social security expenses 29,078 30,397
Other personnel expenses 63,907 62,832
Transaction obligation for leave not taken 334 327
Provisions applied:
social security obligations -468 -789
redundancies -1,540 -1,871
reorganisations -8,156 -8,898
pensions -53 -

365,420 358,661

Allocation to provisions:
social security obligations 127 116
reorganisations 4,984 3,818
redundancies 1,743 1,669
pensions - -

Total 372,274 364,264

The number of employees (effective average) for 2011 was 3,982 of whom 58 were outside the Netherlands (2010: 4,189 of whom
61 were outside the Netherlands).
Remuneration to the TNO Board of Management amounted to EUR 0.9 million (2010: EUR 0.8 million).
Remuneration to the members of the TNO Supervisory Board amounted in total to EUR 0.1 million (2010: 0.1 million).

TNO ANNUAL REPORT 2011 53/98

NOTES TO THE CONSOLIDATED
PROFIT-AND-LOSS ACCOUNT 2011

The provisional coverage of the Stichting Pensioenfonds TNO the Dutch Central Bank aimed at recovering the equity within
is 99.6% on the basis of the Dutch Central Bank amended rate 3 years to the requisite minimum and within 15 years to the
of interest structure as of 31-12-2011. TNO employees have a requisite equity. The recovery plan observes the principles
pension scheme that is incorporated within the Stichting Pen- prescribed by the Dutch Central Bank.
sioenfonds TNO. This pension scheme concerns a conditionally
indexed average pay ruling. Indexation (adjusted to price rises)
of the claims and rights granted occur exclusively if, and insofar
as, the pension fund resources allow and the pension fund has
approved this. If the circumstances at the pension fund give
cause thereto, the board can decide to reduce the claims.

The pension scheme is characterised as a payment agreement

by the Pensions Act. The execution agreement with the pension
fund is for an unlimited period and remains in force until termi-
nated by one of the parties. The main agreements contained in
the execution agreement are:

Indexation gives no cause to amend the premiums

The board sets the premium annually, its basis being
established in a graduated interest calculation linked to the
level of coverage.
The maximum premium is 20% (including 2% extra premium
when the coverage level is less than 110%).

The credit crisis and falling interest rate in the past year saw
a shortfall in the coverage of the pension fund at 31-12-2011.
The level of coverage (market value of the investments
expressed as a percentage of the pension obligations provision
according to the Dutch Central Bank principles) of the fund at
balance sheet date was 99.6%. The minimum equity require-
ment (level of coverage) is 105%, according to the Dutch Central
Bank. The required equity, given the current investment mix, is
116.9%. In 2009 the pension fund submitted a recovery plan to

TNO ANNUAL REPORT 2011 54/98

NOTES TO THE CONSOLIDATED 16 DEPRECIATION OF TANGIBLE FIXED ASSETS
PROFIT-AND-LOSS ACCOUNT 2011
2011 2010

Depreciation on:
buildings 4,729 4,797
fixed technical installations 9,422 8,740
technical equipment 18,080 19,786
inventory 1,458 1,776

33,689 35,099

Book loss on assets 628 2,100

Release from:
equalisation account for investment funds -3,184 -3,121

Total 31,133 34,078

17 EXTRAORDINARY DEPRECIATION
In 2011 there were no extraordinary depreciations.

18 OTHER OPERATING EXPENSES

2011 2010

Accommodation costs 46,577 46,365

Material costs 3,735 3,711
Use of technical equipment 14,687 13,884
General management costs 30,601 32,252
Outsourced work 7,214 8,657
Transaction provisions -849 -2,771
Other expenses 4,740 -215
Amounts extended 837 961

Total 107,542 102,844

19 RESULTS FINANCIAL FIXED ASSETS

This relates to the result of non-consolidated participations and the result of the sale of participations.

TNO ANNUAL REPORT 2011 55/98

NOTES TO THE CONSOLIDATED
PROFIT-AND-LOSS ACCOUNT 2011

Connected parties
Transactions with connected parties occur when a relationship
exists between the company, its participations and their
executives and management.
In normal operations TNO delivers and receives services to
and from various connected parties in which TNO has an
interest of 50% or less. These transactions are generally
performed according to business principles and conditions
that are comparable with transactions with third parties.

TNO ANNUAL REPORT 2011 56/98

BALANCE SHEET OF THE after appropriation of profit (in EUR x thousand)

TNO ORGANISATION 31-12-2011 31-12-2010

PER 31 DECEMBER 2011 Fixed assets

Tangible fixed assets 1 167,688 192,627

Financial fixed assets 2 53,505 53,933
221,193 246,560

Liquid assets

Stocks 317 307

Receivables 3 70,696 67,529
Cash 117,033 115,088
188,046 182,924

Total 409,239 429,484

Equity
- General Reserve 122,979 125,808
- Earmarked reserves 67,051 63,756

190,030 189,564

Equalisation account investment funds 39,374 47,944

Provisions 4 15,313 21,849
Long-term debt 5 26 26
Short-term debt 6 164,496 170,101

Total 409,239 429,484

TNO ANNUAL REPORT 2011 57/98

PROFIT-AND-LOSS (in EUR x thousand)

ACCOUNT 2011 2011 2010

OF THE TNO Income from domestic and foreign assignments 218,855 223,872

ORGANISATION Income from government assignments

Market income
70,329
289,184
73,357
297,229

Knowledge as capital:
Within the themes 44,806 47,028
Across the themes (KAVOT) 26,983 27,261

Policy and application oriented knowledge investments 117,133 120,472

Income from government funding 188,922 194,761

Income 7 478,106 491,990

Other operating income 22,795 20,031

Operating income 500,901 512,021

Direct project costs -83,406 -73,140

Personnel expenses 8 -302,604 -317,994
Depreciation tangible fixed assets -23,034 -27,837
Extraordinary devaluations tangible fixed assets - -
Other operating expenses -92,074 -88,933

Operating expenses -501,118 -507,904

Operating result -217 4.117

Interest income 2,090 1,555

Interest charges -32 -32

Result from ordinary operations before taxes 1,841 5,640

Taxes - -
Results financial fixed assets -1,410 -3,218

Net result 431 2,422

TNO ANNUAL REPORT 2011 58/98

CASH FLOW SUMMARY (in EUR x thousand)

2011 OF THE TNO 2011 2010

ORGANISATION Net result 431 2,422

Share of third parties in result - -

Group result 431 2,422

Depreciations on intangible and tangible fixed assets 22,406 25,737
Results of participations incorporated in the result 1,510 3,218
Results from the disposal of fixed assets 1,780 3,066
Transaction provisions -6,536 -3,370
Transaction working capital, excluding cash -8,782 5,251
Dividends received - -

Cash flow from operational activities 10,809 36,324

Investments in intangible fixed assets - -

Investments in tangible fixed assets -12,023 -19,767
Investments in financial fixed assets -4,000 -2,871
Disinvestments in intangible fixed assets - -
Disinvestments in tangible fixed assets 9,592 -196
Sale of participations and redemptions received 2,953 2,042

Cash flow from investment activities -3,478 -20,792

Investment contributions received/repaid -5,386 4,763

Loans received - -
Loan redemptions - -25

Cash flow from funding activities -5,386 4,738

Cash flow for financial year 1,945 20,270

Cash assets as of 1 January 115,088 94,818

Cash flow for financial year 1,945 20,270
Exchange rate differences - -

Cash assets at 31 December 117,033 115,088

TNO ANNUAL REPORT 2011 59/98

PRINCIPLES

General
For the principles of valuation and determination of result refer to
the notes to the consolidated annual accounts. This also applies
to the other notes insofar as these are not contained here.

TNO ANNUAL REPORT 2011 60/98

NOTES TO 1 TANGIBLE FIXED ASSETS
Changes in the tangible fixed assets in 2011
THE BALANCE SHEET Real estate
and buildings
Fixed
technical
Technical
equipment
Inventory Total

PER 31 DECEMBER 2011 installations

Balance at 31-12-2010
Acquisition price 194,759 149,614 140,492 17,671 502,536
Cumulative depreciations and devaluations -116,132 -79,392 -111,457 -12,105 -319,086
Assets under construction and development - 8,278 899 - 9,177

Book value 78,627 78,500 29,934 5,566 192,627

Transaction book value

Investments 2,559 6,265 10,176 542 19,542
Disinvestments -7,093 -1,075 -3,117 -87 -11,372
Depreciations -3,749 -9,347 -11,144 -1,350 -25,590
Assets under construction and development - -7,026 -493 - -7,519

-8,283 -11,183 -4,578 -895 -24,939

Balance at 31-12-2011
Acquisition price 190,225 154,510 126,274 17,874 488,883
Cumulative depreciations and devaluations -119,881 -88,445 -101,324 -13,203 -322,853
Assets under construction and development - 1,252 406 - 1,658

Book value 70,344 67,317 2,356 4,671 167,688

In the profit-and-loss account the item depreciation tangible fixed assets also includes the release from the equalisation account
for investment funds. The book value of the tangible fixed assets per 31 December 2011 includes real estate, buildings and fixed
technical installations at EUR 29.2 million (2010: EUR 41.0 million) that are the exclusive property of TNO.

TNO ANNUAL REPORT 2011 61/98

NOTES TO THE BALANCE SHEET 2 FINANCIAL FIXED ASSETS

Group companies Particpations Loans Total

Share in equity Share in equity

Balance at 31-12-2010 41,040 323 12,570 53,933

Transactions:
Investments and extended loans - - 4,000 4,000
Disinvestments and redeemed loans -9 - -2,944 -2,953
Result participations -1,510 - - -1,510
Reserve conversion disparities 35 - - 35

Balance per 31-12-2011 39,556 323 13,626 53,505

Under group companies includes the participation in TNO Companies B.V. (100%).
Of the loans EUR 10.5 million have a term exceeding one year.

3 RECEIVABLES

31-12-2011 31-12-2010
Receivables related to assignments 55,207 49,811
Receivables on group companies 5,113 1,610
Receivables on participations 639 907
Receivables on government funding 3,694 8,665
Other receivables 6,043 6,536
Transitory assets
Total 70,696 67,529

Of the receivables EUR 2.8 million have a term exceeding one year.

TNO ANNUAL REPORT 2011 62/98

NOTES TO THE BALANCE SHEET 4 PROVISIONS

Balance per Withdrawn Added Released Balance per

31-12-2010 in 2011 in 2011 in 2011 31-12-2011

Social liabilities 2,203 468 127 - 1,862

Claims 800 - - - 800
Reorganisations 8,073 6,185 2,705 1,432 3,161
Capital outflows 1,638 1,043 1,743 498 1,840
Major maintenance 1,956 1,651 1,651 - 1,956
Other 7,179 1,380 376 481 5,694

Total 21,849 10,727 6,602 2,411 15,313

Of the provisions circa EUR 7.7 million are long-term (2010: EUR 8.2 million).
The provision for social liabilities concerns capital outflow costs, supplements to WAO payments as well as future payments deriving from
pension rights to past employment years not financed elsewhere.
The provision for claims covers the estimated liabilities deriving from expected submitted unsettled claims and is valued per (potential)
claim at the estimated future expenditure including external processing costs.
The reorganisation provisions mainly concern agreed departure schemes with ex-employees. The provision for cash outflows relate to the
expected costs relating to the proposed dissolution of employment contracts with employees deriving from normal personnel mainte-
nance.
The provision for major maintenance at the end of 2011 is based on maintenance to be carried out in relation to the multi-year mainte-
nance plan 2010-2013

5 LONG-TERM DEBT

31-12-2011 31-12-2010

Other loans 26 26

Total 26 26

TNO ANNUAL REPORT 2011 63/98

NOTES TO THE BALANCE SHEET 6 SHORT-TERM DEBT

31-12-2011 31-12-2010

Creditors 29,156 37,211

Debt to group companies 5,171 1,099
Debt to participations 66 134
Taxes and social insurance premiums 12,485 14,031
Holiday allowance liabilities 7,853 8,058
Liabilities for untaken leave 18,243 18,891
Other debt 28,259 27,816
Deferred liabilities 32,139 29,102
Work in progress 31,124 33,759

Total 164,496 170,101

WORK IN PROGRESS

31-12-2011 31-12-2010

Cumulative costs less provisions for losses and risks 366,921 349,593
Minus cumulative declared instalments -398,045 -383,352

Total work in progress -31,124 -33,759

Balance of working in progress >0 70,951 63,179

Balance of working in progress <0 -102,075 -96,938

Total work in progress -31,124 -33,759

The deferred liabilities mainly concern deferred government funding, prepayments received in the context of specific research projects.

TNO ANNUAL REPORT 2011 64/98

NOTES TO THE 7 INCOME (in EUR x thousand)

PROFIT-AND-LOSS 2011 2010

ACCOUNT 2011 Industry assignments 119,840 125,358

Assignments for international organisations 34,562 25,518
Other foreign assignments 64,453 72,996
99,015 98,514

Government assignments 70,329 73,357

Market income 289,184 297,229

Knowledge as capital:
Within the themes 44,806 47,028
Across the themes (KAVOT) 26,983 27,261
Policy and application oriented knowledge investments 117,133 120,472

Government funding income 188,922 194,761

Total 478,106 491,990

8 PERSONNEL EXPENSES

2011 2010

Wages and salaries 198,092 214,714

Pension expenses 27,644 25,619
Other social expenses 23,384 25,429
Other personnel expenses 58,203 58,058
Transaction for liability of untaken leave 332 327
Transactions for provisions -5,051 -6,153

Total 302,604 317,994

TNO ANNUAL REPORT 2011 65/98

NOTES TO THE PROFIT-AND-LOSS ACCOUNT 2011 The following fees were charged by KPMG Accountants N.V. to the TNO organisation, its subsidiaries and other companies it
consolidates as stipulated in article 2:382a of the Dutch Civil Code.

9 ACCOUNTANT FEES (in EUR x thousand)

2011 2010

Audit of the annual accounts 398 504

Other audit assignments 385 429
Fiscal advice 305 47

Total 1,088 980

TNO ANNUAL REPORT 2011 66/98

REPORT ACCORDING ACTIVE

TO THE ACT ON THE Job title Employed Departed Hours Taxable Taxable Pension Redundancy Remune- Taxable Taxable Pension Redundancy Remune-

PUBLICATION OF from on per

week
salary

2011
salary

2011
contribution

2011
payment

2011
ration

2011
salary

2010
salary

2010
contribution

WG 2010
payment

2010
ration

2010

PUBLICLY FUNDED (fixed) (variable) (fixed) (variable)

TOP SALARIES (WOPT)

1 Chairman Board of Management 7-2003 40 238,951 36,428 25,226 - 300,605 242,856 - 20,621 - 263,477

2 Director 5-1977 40 202,917 18,527 19,252 - 240,696 194,382 - 15,762 - 210,144

3 Member Board of Management 10-2002 40 168,975 38,944 26,743 - 234,662 205,225 - 21,847 - 227,072

4 Member Board of Management 1-2009 40 177,446 28,500 20,446 - 226,392 179,111 - 16,759 - 195,870

5 Corporate dept. Director 9-2009 40 166,379 23,288 17,303 - 206,970 162,614 - 14,079 - 176,693

6 Director 4-1992 40 161,467 24,412 17,980 - 203,859 160,266 - 14,563 - 174,829

1, 2, 3, 4, 5, 6 Salary is based on a 40-hour working week and comes within the salary structure applied by TNO since the beginning of the 1980s.

REDUNDANT/POST-ACTIVE PER 31-12-2011

Job title Employed Departed Hours Taxable Taxable Pension Redundancy Remune- Taxable Taxable Pension Redundancy Remune-

from on per salary salary contribution payment ration salary salary contribution payment ration

week 2011 2011 2011 2011 2011 2010 2010 WG 2010 2010 2010

(fixed) (variable) (fixed) (variable)

1 Manager 10-1979 7-2011 40 108,567 - 7,936 392,519 509,022 129,543 - 11,128 - 140,671

2 Corporate dept. Director 11-1969 8-2011 40 310,784 31,415 13,399 - 355,598 198,139 - 16,277 - 214,416

3 Director 7-1994 6-2011 40 99,541 9,269 7,219 222,310 338,339 132,351 - 11,794 - 144,145

4 Manager 3-1983 3-2011 40 33,446 - 3,187 257,752 294,385 114,066 - 10,446 - 124,512

5 Information expert 5-1979 10-2011 40 66,090 - 7,069 203,371 276,530 67,782 - 7,043 - 74,825

6 Manager 1-1999 3-2011 40 31,809 - 3,111 200,459 235,379 108,133 - 10,202 - 118,335

7 Manager 3-2002 4-2011 40 66,047 7,529 4,113 151,676 229,365 104,924 - 10,101 - 115,025

8 Project Manager 5-1991 5-2011 40 48,004 - 4,415 173,000 225,419 91,801 - 8,727 - 100,528

9 Scientific employee 4-1985 1-2011 40 32,572 - 699 183,049 216,320 53,125 - 6,962 - 60,087

10 Director 1-2003 4-2011 40 189,034 17,970 5,903 - 212,907 150,741 - 14,346 - 165,087

11 Manager 1-1999 11-2010 40 - - - 216,000 216,000 117,447 - 9,070 - 126,517

1, 3, 5, 7, 8, 11 Redundancy is not attributable to own fault. Relocation possibilities are not evident. Respective employee received compensation based on the
neutral magistrate formula.

2 Respective employee received a higher taxable income due to the payment of leave.

4, 6, 9 Job is terminated. Redundancy is not attributable to own fault. Relocation possibilities are not evident. Respective employee received compensation based
on the neutral magistrate formula.

10 Respective employee received a higher taxable income because of the payment of life-course savings scheme amount due.

TNO ANNUAL REPORT 2011 67/98

PARTICIPATION AT THE END OF 2011 TNO PARTICIPATED DIRECTLY OR INDIRECTLY IN THE FOLLOWING COMPANIES

DATA Name Domicile %

TNO Bedrijven B.V. Delft 100

TNO Real Estate Holding B.V. Delft 100
TNO Deelnemingen B.V. Delft 99
TNO Technostarters B.V. Delft 100
TNO Management Consultants B.V. Apeldoorn 100
TNO Interim Management B.V. Apeldoorn 100
TNO MC Customer Management B.V. Apeldoorn 60
Investors in People Nederland B.V. Eindhoven 100
CBO BV Apeldoorn 100
Dutchear B.V. Delft 100
TNO Automotive International B.V. Delft 100
TNO Automotive Safety Solutions B.V. Delft 100
TNO Madymo B.V. Delft 100
TNO Madymo North America Inc. Delaware, VS 100
TNO Automotive Japan K.K. Yokohama, Japan 100
TNO Automotive Germany GmbH Stuttgart, Germany 100
TNO Automotive China Co. Ltd. Shanghai, China 100
TNO Automotive Korea Ltd. Seoul, Korea 100
TNO UK Holding Ltd. London, GB 100
Delft Carshalton Ltd. Carshalton, GB 100
Den Haag Centrum voor Strategische Studies B.V. Den Haag 80
Holland Metrology N.V. Delft 100
NMi Nederland B.V. Delft 100
Verispect B.V. Delft 100
NMi Certin B.V. Delft 100
VSL B.V. Delft 100
NMi Italia S.R.L. Padua, Italy 70
TNO Diana B.V. Delft 70
Femsys Ltd. Leicester, GB 100
TNO Diana UK Ltd. Leicester, GB 100
TNO Diana NA Inc. Delaware, VS 100
TNO Heimolen B.V. Bergen op Zoom 100
DUCARES B.V. Zeist 100
SU Biomedicine B.V. Zeist 70
Delft Patents B.V. Delft 90
BATAVIA Bioservices B.V. Leiden 75
BATAVIA Holdings Inc Delaware, VS 100
BATAVIA Bioservices Inc Delaware, VS 100
APP Beheer B.V. Bergen op Zoom 100
Aerospace Propulsion Products B.V. Hoogerheide 100

TNO ANNUAL REPORT 2011 68/98

PARTICIPATION DATA *) consolidation from 2011

Name Domicile %
APP Onroerend Goed B.V. Klundert 100
TNO Triskelion B.V. *) Zeist 100
TNO Homologations B.V. *) Helmond 100
ProQares B.V. *) Rijswijk 100
ProQares USA Inc. (voorheen BCPS) Wahington, VS 100

THE FOLLOWING COMPANIES ARE NOT CONSOLIDATED:

Name Domicile %

Mestcorp Inc. Lake Oswego, VS 6

BG Medicine Inc. Waltham, VS 0
Transport & Mobility Leuven N.V. Leuven, Belgium 50
Prime Vision B.V. Delft 40
GnTel B.V. Groningen 34
WTCW N.V. Amsterdam 6
Noord Tech Ventures C.V. Groningen 3
Delbia B.V. Beverwijk 24
Dyadic International Inc. Jupiter, VS 0.1
TNO International Agencies B.V. Delft 100
NMi UK Ltd. Bangor 51
Sino-Euro Biomedicine Co. Ltd. Chengdu Sichuan 50
Delft Sense B.V. Delft 50
ConsumersVoice B.V. Groningen 90
Beijing Building Technology Development Company Ltd. Beijing, China 30
Dariuz B.V. Eindhoven 30
LEGYON B.V. Leeuwarden 40
Cropwatch Holding B.V. Oosterbeek 33
Cropwatch B.V. Oosterbeek 80
TNO Science & Technology Consultation Co. Ltd. Chengdu, China 100
Efectis Holding SAS St.Remy les Chevreuse 50
Efectis France SAS St.Remy les Chevreuse 100
Efectis Nederland B.V. Delft 100
Efectis Investment NL B.V. Rijswijk 100
Efectis Real Estate Company B.V. Rijswijk 100
Efectis Ibrica S.L. Madrid, Spain 54
Efectis Eurasia Istanbul 100
Efectis Era Avrasya Istanbul 66
TV Rheinland TNO Automotive International B.V. Helmond 50
SoLayTec B.V. Eindhoven 30
Automotive Facilities Brainport Holding N.V. Helmond 24
European Electric Mobility Center B.V. Helmond 95

TNO ANNUAL REPORT 2011 69/98

PARTICIPATION DATA Name Domicile %
AFB Driving Guidance Lab B.V. Helmond 95
CelSian Glass & Solar B.V. Eindhoven 100

DISPOSED/TERMINATED IN 2011
Instituut voor Sportaccomodaties (ISA SPORT) B.V. Arnhem 65
TNO Blgg AgriQ B.V. Wageningen 60
AgriQ Laben Ltd. Antalya, Turkey 51
TNO Automotive Advanced Engineering B.V. Delft 100
BiosparQ B.V. Delft 80
Twente Inst. for Wireless and Mobile Communications B.V. Enschede 25
S&D Solutions B.V. Delft 100
3D Metal Forming B.V. Rijswijk 45
Inmotio Object Tracking B.V. Delft 45
Brightsight B.V. Delft 1
Verkeersradar B.V. Haarlem 50

TNO ANNUAL REPORT 2011 70/98

AUDIT STATEMENT BY THE
INDEPENDENT ACCOUNTANT
TO THE SUPERVISORY BOARD AND THE BOARD OF MANAGEMENT OF THE NETHERLANDS ORGANISATION FOR
APPLIED SCIENTIFIC RESEARCH TNO
STATEMENT CONCERNING THE ANNUAL ACCOUNTS
We have audited the annual accounts for 2011 of the Netherlands
Organisation for Applied Scientific Research TNO in Delft. The
annual accounts comprise the consolidated and single balance
sheet at 31 December 2010 and the consolidated and single
profit-and-loss account for 2010 with the notes that include a
summary of the principles used for financial reporting and other
notes.
RESPONSIBILITY OF THE BOARD
The TNO Board of Management is responsible for drafting the
annual accounts that must faithfully represent the equity and
the result as well as for drafting the annual report, both in
accordance with the TNO Guidelines for Financial Reporting
from the Minister of Education, Culture and Science and the
supplementary letter dated 21 April 2004 reference OWB/
FO/2004/8195. The TNO Board of Management is also
responsible for such internal control as deemed necessary to
enable the annual accounts to be drafted without deviations of
any tangible significance as a result of fraud or error.
RESPONSIBILITY OF THE ACCOUNTANT
Our responsibility is to judge the annual accounts on the basis
of our audit. We have conducted our audit in compliance with
Dutch law, including the Dutch audit standards. This requires us
to comply with the ethical stipulations that apply for us and that
we plan and execute our audit such that there is a reasonable
level of certainty that the annual accounts contain no deviations
of any tangible significance. An audit comprises the execution
of work to acquire audit information about the amounts and the
notes in the annual accounts. The selected work depends on the
judgement of the accountant, including estimating the risks that
TNO ANNUAL REPORT 2011
the annual accounts contain deviations of any tangible significance
as a result of fraud or error.
In making these risk estimations the accountant considers the
internal control that is relevant to drafting the annual accounts
and for the faithful picture these present, with a focus on esta-
blishing audit work suited to the circumstances. These risk esti-
mations are not aimed, however, at presenting a judgement about
the effectiveness of the internal control at TNO. An audit also
comprises the evaluation of the suitability of the principles used
for financial reporting and the reasonableness of the estimates
made by the TNO Board of Management as well as an evaluation
of the general picture of the annual accounts.
We are of the opinion that the information we have acquired for
the purpose of the audit is sufficient and suitable to substanti-
ate our judgement.
JUDGEMENT
In our judgement the annual accounts give a fair and true
picture of the size and composition of the equity of the
Netherlands Organisation for Applied Scientific Research TNO
per 31 December 2011 and of the result for 2011 in accordance
with the TNO Guidelines for Financial Reporting from the
Minister of Education, Culture and Science and the supplemen-
tary letter dated 21 April 2004 reference OWB/ FO/2004/8195.
STATEMENT CONCERNING OTHER LEGAL REQUIREMENTS
In accordance with article 2:393 clause 5 paragraph e and f
of the Dutch Civil Code we state that we have not witnessed
any deficiencies following the study of the report of the TNO
Board of Management insofar as we can judge and as drafted
71/98
AUDIT STATEMENT BY
THE INDEPENDENT ACCOUNTANT

in accordance with Statute 9 Book 2 of the Dutch Civil Code, and

of the supplemented required data as required by article 2:392
clause 1 paragraph b to h of the Dutch Civil Code. We also state
that the report of the TNO Board of Management, insofar as we
can judge, is consistent with the annual accounts as required in
article 2:391 clause 4 of the Dutch Civil Code.

Rotterdam, 16 May 2012

KPMG ACCOUNTANTS N.V.

T.A. Kalmr RA

TNO ANNUAL REPORT 2011 72/98

GRI GUIDELINES
FOR SUSTAINABILITY
REPORTS
FOR THIS REPORT WE HAVE USED THE G3 GUIDELINES FOR SUSTAINABILITY REPORTS ISSUED BY THE GLOBAL
REPORTING INITIATIVE (GRI). THE GUIDELINES HAVE BEEN APPLIED AT LEVEL B+, SEE THE STATEMENT OF THE GRI.
IN ADDITION TO THE COMPULSORY INFORMATION (CATEGORIES 1.1 TO 4.17 AND THE POLICY STATEMENTS) WE
HAVE SELECTED AT LEAST TWENTY ECONOMIC, SOCIAL AND ENVIRONMENTAL INDICATORS.

The GRI index chart reveals which GRI indicators are contained
Statement in the annual review and where indicated as + contain a
GRI Application Level Check description of the indicator, a partial description and -
GRI hereby states that TNO has presented the TNO Annual Review 2011 no description is contained in the report. NR means that the
to GRIs Report Services which have concluded that the report fulfils the subject is not relevant to TNO.
requirement of Application Level B+.
GRI Application Levels communicate the extent to which the content of the
G3.1 Guidelines has been used in the submitted sustainability reporting.
The Check confirms that the required set and number of disclosures for that
Application Level have been addressed in the reporting and that the GRI Con-
tent Index demonstrates a valid representation of the required disclosures as
described in the GRI G3.1 Guidelines.
Application Levels do not provide an opinion on the sustainability perfor-
mance of the reporter or on the quality of the information in the report.

Amsterdam, 11 April 2012

Nelmara Arbex
Deputy Chief Executive
Global reporting Initiative

The + has been added to this Application because TNO has submitted (part
of) this report for external assurance. GRI accepts the reporters own criteria
for choosing the relevant assurance provider.

The Global Reporting initiative (GRI) is a network-based organisation that has pioneered the development
of the worlds most widely used sustainability reporting framework and is committed to its continuous
improvement and application worldwide. The GRI Guidelines set out the principles and indicators that
organisations can use to measure and report their economic, environmental and social performance.
www.globalreporting.org
Disclaimer: Where the relevant sustainability reporting includes external links, including to audiovisual
material, this statement only concerns material submitted to GRI at the time of the Check on 29 March
2012. GRI explicitly excludes the statement from being applied to any later changes to such material.

TNO ANNUAL REPORT 2011 73/98

GRI TABEL
Description of GRI component
STRATEGY AND ANALYSIS
1.1 Statement of the CEO
1.2 Consequences, risks and possibilities
Organisation profile
2.1 Name of organisation
2.2 Brands, products and/or services
2.3 Operational structure of the
organisation
2.4 Location of headquarters
2.5Countries with a branch
2.6 Ownership and legal form
2.7 Sales markets
TNO ANNUAL REPORT 2011
Included Section Page Explanation
+ Report Board of Management 10-12
+ Report Board of Management 10,11
+ The company name TNO stands for
Netherlands Organisation for Applied Scientific
Research.
+ TNO is a Research and Technology
Organisation that realises applied research and
innovations for and with industry and government
customers, nationally and internationally. We work on
the basis of societal themes.
+ Corporate Governance 29, The reorganisation implemented in January 2011
Report Board of 10,12 incorporates a new operational structure steered
Management and this by themes and the safeguarding and development of
chart knowledge.
+ The statutory domicile of TNO is Delft.
+ TNO is domiciled in the Netherlands and participates
in several companies in countries stated in the list of
participations.
The complete list is shown on www.tno.nl/locaties.
+ Corporate Governance 29 The TNO Act stipulates the structure of the
organisation and its relationship with the government.
In 2011 TNO came under the ministerial responsibility
of the minister of Economic Affairs, Agriculture and
Innovation, but performed its tasks independently.
Government funding is established every four years on
the basis of the Strategic Plan.
+ Report Board of Management 10, 2011 was a year focused on the structuring by 7
Explanation to the 50 societal themes in which TNO works with stakeholders
consolidated profit-and-loss in society (including industry and government). These
account interrelated themes are: Healthy Living, Industrial
Innovation, Defence, Safety and Security, Energy,
Transport and Mobility, Built Environment, and
Information Society.
The distribution of activities across the different
stakeholders is evident from the annual accounts.
74/98
GRI TABEL
Description of GRI component Included Section Page Explanation

2.8 Size of company + Consolidated profit-and-loss 41, 50

2.9 Organisational changes during the
reporting period
2.10 Distinctions during the reporting
period
account and the balance 57, 64
sheet along with the related
notes
+ 10, 11, From January 2011 the reorganisation had an impact
27 on the organisation.
+ No specific distinctions

Report parameters
3.1 Reporting period + Consolidated Balance Sheet 56 The reporting period runs from 1-1-2011 to 31-12-2011.
3.2 Previous review + This The annual review of 2010 appeared in May 2011.
chart The regular and SCR component were an integral part
of this annual review.
3.3 Reporting cycle + This This report is published annually.
chart
3.4 Contact(s) + Colophon

TNO ANNUAL REPORT 2011 75/98

GRI TABEL
Description of GRI component
3.5 Process for determining the content of
the report
3.6 Delineation
3.7 Restrictions to the scope or delineation
3.8 Basis for reporting on partnerships
3.9 Calculation principles
3.10 Reformulation
TNO ANNUAL REPORT 2011
Included Section Page Explanation
+ Employees make the This The content of the annual report is based on the
difference; Corporate Chart interests of the key stakeholders of TNO, namely the
social responsibility personnel and customers (government and industry).
The business stakeholders must be able to verify the
financial solidity of TNO on the basis of the annual
review; for the government it is essential that external
demand and an address to societal challenges are
expressed in the TNO choices. Discussion on this takes
place internally and externally. All issues are put in a
materialities matrix that sets TNOs interests against
those of society. Those subjects of major concern for
both TNO and society are included in the reporting:
energy in the built environment and ICT, sustainable
mobility (in respect of own operations and those
for customers); sustainable purchasing; diversity,
education and code of conduct; TNOs responses to
topics of societal sensitivity like defence research,
nanotechnology, shale gas and animal testing; TNO
contribution to developing countries (Innovation for
Development). The Board of Management is ultimately
responsible for the contents.
+ This This annual review concerns TNO, whereby a
chart distinction is made between the TNO Organisation and
the participations.
+ This The chapters Employees make the difference and
chart Corporate social responsibility are exclusively
applicable to the TNO Organisation, not to the
participations.
+ Notes to the consolidated 41, 49
annual accounts 2011 67, 68
+ Notes to the consolidated 35, 36, The principles for the annual accounts are extensively
annual accounts 19 en explained from p.35;
The environmental footprint This The calculation principle for the environmental
of TNO chart footprint is explained on p.19 and in the background
document Explaining the environmental footprint of
TNO 2011, which can be found at www.tno.nl/mvo.
+ There has been no reformulation.
76/98
GRI TABEL
Description of GRI component Included Section Page Explanation

3.11 Changes in the reporting
3.12 Standard elements of the information
provision
3.13 External validation
+ No significant changes occurred during the reporting
period that are relevant to this reporting.
+ This
Chart
+ Accountant statement; 25, 26
Assurance report

Governance, commitment and engagement

4.1 Governance structure
4.2 Chairman of the highest governing body
4.3 Independence of highest governing
body
4.4 Mechanisms for shareholders and
employees for recommendations to highest
governing body
4.5 Link between the compensation to
highest governing body and performance of
the organisation
4.6 Processes whereby the highest
governing body ensures conflicts of interest
are avoided
4.7 Process for determining the
qualifications of the members of the Board
of Management to supervise the strategy in
terms of socio-economic and environmental
topics
4.8 Internally developed mission
statements and codes of conduct important
for CSR performance
+ Corporate Governance
+ Composition of Boards
+ Report of Supervisory Board 8, 29
Corporate Governance
+ Employees make the
difference
+ Report of Supervisory
Board;
Report according to the act
regarding publication of top
incomes funded by public
funds (WOPT);
Notes to the consolidated
annual accounts
+ Corporate Governance
+ Corporate social
responsibility
+ Corporate social
responsibility
29,30
4
15
9, 52,
66
29, 30 The Corporate Governance section describes how
TNO applies the Code for the proper governance of
performance of which conflict prevention is a part.
18 Supervising the strategy in respect of sustainability
related topics is delegated to a CSR steering group.
18 In October 2011 the Policy Statement on Corporate
Social Responsibility approved by the RvB reveals
how TNO treats the topics people, planet and profit
whereby there is a subdivision into Ethics, Health and
Safety, Labour and Environment.

TNO ANNUAL REPORT 2011 77/98

GRI TABEL
Description of GRI component
4.9 Procedures of the Board of
Management for assessing, adjusting and
managing sustainability performance
4.10 Processes for evaluating own
performance of the Board of Management
4.11 Explanation of application of the
precaution principle
4.12 External developed initiatives to which
the organisation subscribes
4.13 Membership of associations and
interest groups
4.14 List of relevant groups of stakeholders
for the organisation
TNO ANNUAL REPORT 2011
Included Section Page Explanation
+ Corporate social 18 TNO has an SCR steering Group with the director
responsibility of Finance and Facilities, the innovation director
of Buildings and Infrastructure and the director of
Business and Information. They supervise the CSR
officer. This steering group consults at least once a
year with the Board of Management on the results
achieved and adjustment of the CSR policy.
+ Corporate Governance 9, 29 The Remuneration Committee and the Selection and
Recruitment Committee both met twice.
+ This The general terms and conditions of TNO are based on
Chart limited liability in correspondence with the nature of
the work performed by TNO. For that part of the work
which falls under limited liability TNO has insurance
cover.
TNO exercises its responsibility in respect of fraud
prevention, making use of the administrative
organisation, internal control measures, the Code of
Conduct and the Whistleblower regulation.
+ Employees make the 17, 21, In 2011 TNO committed to several development
difference; 22, 23 cooperation, mobility and education initiatives.
Corporate social
responsibility
+ Board of Management 10 and TNO participates in countless organisations.
Report this Strategically international cooperation in the context
chart of EARTO (trade association of Europes specialised
research and technology organisations) and nationally
with the TO2 federation. Since 2011 Jan Mengelers
(chairman of the RvB) has been chair of EARTO.
+ Board of Management 10-12 Key stakeholders for TNO: employees, ministries,
Report and this industry (both large companies and SMEs) and society.
chart A chief role is played by the ministries OC&W, E,L&I
and Defence. For each theme there is an extensive
account for the list of stakeholders available in the
Strategic Plan 2011-2014 (downloadable from: www.
tno.nl/downloads/tno_strategisch_plan_2011_2014.
pdf: pp. 40, 50, 60, 70, 78, 86, 94).
78/98
GRI TABEL
Description of GRI component
4.15 Basis for selection of shareholders
4.16 Stakeholder approach
4.17 Reaction of the organisation to
the topics discussed in contact with
stakeholders
Policy statements
DMA EC Policy statement: Economic
- DMA EC: Economic performance
- DMA EC Presence in the market
- DMA EC Indirect economic impact
DMA EN Policy statement: Environment
(Aspects: Materials, Energy, Emissions and
waste, Products and services, Transport,
Overall)
TNO ANNUAL REPORT 2011
Included Section Page Explanation
+ This TNO embraces a wide range of stakeholders in the 7
chart themes. For each theme there is an extensive account
for the long-list of stakeholders available in the
Strategic Plan 2011-2014 and on the pages indicated
in the explanation in 4.14.
+ Board of Management 10-12 The structure of the strategic plan 2011-2014
Report and this incorporates an extensive consultation with
chart stakeholders.
+ Board of Management 10, 11 Demand is key to TNOs proposal to society: the
Report and this strategy of TNO is essentially determined by these
chart stakeholder relationships. In 2011 a key connection
moment occurred in the link with the nine economic
top sectors selected by the government.
+ Board of Management 10-12
Report
+ Board of Management
Report
Consolidated profit-and-loss
account
NR
+ Board of Management 10, 11 TNO aims for Impact (title of the strategic plan 2011-
Report and this 2014 is: Innovate with impact) and strives to reach
chart this in partnership with other parties and through a
focus on seven societal themes.
+ Corporate social 18 This is described in the CSR Policy Statement. The
responsibility and this relevant aspects are considered in this annual report
chart in the TNO environmental footprint section. There is
a cohesive policy for each of the aspects stated in the
internal operation, with execution in the hands of the
corporate department and Finance and Operations
department.
79/98
GRI TABEL
Description of GRI component Included Section Page Explanation

DMA LA Policy statement: Employees
(Aspects: Employability, employer-employee
relations, health and safety, training and
diversity)
DMA HR Policy statement: Human rights
(aspects: investment and purchasing policy,
non-discrimination)
DMA SO Policy statement:
Society
- aspect of Corruption
- aspect of Public policy
- aspect of Anti-competitive behaviour
DMA PR Policy statement: Product
Responsibility (aspects: Product and
service labelling and Compliance)
+ Employees make the
difference;
Corporate social
responsibility
+ Corporate social
responsibility;
Innovation for Development
+ Report by Supervisory
Board;
Corporate Governance;
Employees make the
difference
+ This
14, 18 This is described in the CSR Policy Statement. The
and this section Employees make the
chart difference explores in full TNO policy regarding the
relevant aspects relating to policy for employees:
development of working terms and conditions, training
and diversity. All TNO employees also come within a
collective labour agreement.
18, 22, This is described in the CSR Policy Statement.
23 and Employees working in development cooperation
this receive special training in ethics in developing
chart countries.
8, 29 This is described in the CSR Policy Statement. The
30, 18 Supervisory Board ensures correct execution of the
and this TNO Act, as contained in the Corporate Governance
chart whereby independence and avoidance of unfair
competition are central. Integrity plays a key role
as contained in the code of conduct discussed and
agreed with all new employees.
TNOs mission is to create innovations and generally
chart complete projects with the delivery of a report. The
quality is improved by the outcome of customer
satisfaction surveys. In the GRI table the outcomes are
considered, see PR 5.

Economic indicators
EC 1 Direct economic value + Consolidated balance sheet 31-55
en consolidated annual
accounts including notes
EC 2 Financial implications as a -
consequence of climate change
EC 3 Dividend cover plan -
EC 4 Financial support from the + Consolidated balance sheet 3, 7, 51
government en consolidated annual
accounts including notes
EC 5 Ratio of standard staring salary and -
local minimum wage
EC 6 Local suppliers -
EC 7 Local personnel recruitment -
EC 8 Services and investments geared to + Corporate social 22, 23 The investments in Development cooperation are a
societal importance responsibility; Innovation for clear signal of TNOs societal investments.
development
TNO ANNUAL REPORT 2011 80/98
GRI TABEL
Description of GRI component Included Section Page Explanation

EC 9 Description of indirect economic + Board of Management 10-12 Innovation for Life is key within TNO and specifically
impact Report within the Strategic Plan 2011-2014.

Environmental indicators
EN 1 Weight of materials - The weight of the materials is not monitored.
EN 2 Materials used from external sources + Corporate social 21, 22 In 2011 a start was made on introducing new
responsibility; and this workplaces (ICT hardware) for all TNO personnel.
Energy and ICT; Sustainable chart Disposal of old workplaces: contract with Viafrika for
purchasing reuse and/or recycling of materials; new workplace
requirement: 50% recyclable.
EN 3 Direct primary energy consumption + Corporate social 19, 20
responsibility;
A list of environmental
indices
EN 4 Indirect energy consumption + Corporate social 19, 20
responsibility;
A list of environmental
indices
EN 5 Energy saving + Corporate social 19, 20, The change in energy consumption is part of the
responsibility 21, 22 environmental footprint.
EN 6 Initiatives to offer energy-efficient Corporate social 20, 21, Sustainability and scarcity are the central thread
products or services and the corresponding responsibility 22 and through the themes; consequences for energy
fall in energy consumption this consumption have not yet been calculated.
chart
EN 7 Initiatives to indirectly reduce energy + Corporate social 20-22
consumption responsibility
EN 8 Total water consumption Corporate social 19
responsibility;
Environmental footprint
2011
EN 9 Water extraction -
EN 10 Reuse of water -
EN 11 Country location in/near protected -
areas
EN 12 Significant effects on the biodiversity -
EN 13 Habitat protection -
EN 14 Strategies and policy to manage the -
effects on the biodiversity
EN 15 Threatened or protected animal -
species

TNO ANNUAL REPORT 2011 81/98

GRI TABEL
Description of GRI component Included Section Page Explanation

EN 16 Emission of greenhouse gases + Corporate social 19, 20 Background document Explaining the TNO
responsibility and this Environmental Footprint 2011, at www.tno.nl;
chart The IPCC method for GWP (Global Warming Potential)
100a is used to calculate greenhouse gas equivalents
for direct emissions and scope 3 level.
EN 17 Other indirect emission of + Corporate social 19, 20
greenhouse gases responsibility
EN 18 Initiatives to reduce indirect + Corporate social 20, 22
greenhouse gases responsibility
EN 19 Emission of ozone degrading -
substances
EN 20 NO- and SO-airborne emissions -
EN 21 Total water discharge by quality -
EN 22 Total weight of waste -
EN 23 Number and volume of significant -
discharges
EN 24 Hazardous waste -
EN 25 Bodies of water and related habitats -
influenced by discharge of water
EN 26 Initiatives to reduce environmental + Corporate social 18-24
harm responsibility
EN 27 Recoverable percentage of weight of -
products sold
EN 28 Monetary value of significant -
penalties
EN 29 Environmental impact of the + Corporate social 22
transport of goods and employees responsibility
EN 30 Investments in and spending on + Corporate social 21-24
environmental protection responsibility

Social indicators
LA 1 Profile of personnel base + Employees make the 14 and At the end of 2011 3403 employees had a permanent
difference this contract and and 340 employed had a fixed-term
chart contract. 971 TNO employees had a part-time contract
on 31 December 2011.
LA 2 Personnel turnover, split by group -
(region, gender, age)

TNO ANNUAL REPORT 2011 82/98

GRI TABEL
Description of GRI component
LA 3 Employee benefits not valid for
part-time or temporary contracts
LA 4 Percentage of employees that are part
of the collective labour agreement
LA 5 Minimum notice in relation to
operational changes
LA 6 Percentage of personnel base
represented in health and safety
committees
LA 7 Work disability
LA 8 Risk management programmes in
relation to serious illness
LA 9 Health and safety issues agreed with
the union
LA 10 Average number of hours for
education and training
LA 11 Programmes for competence
management and lifelong learning
LA 12 Percentage of employees with
performance and career development
appraisal interview
LA 13 Diversity of personnel
TNO ANNUAL REPORT 2011
Included Section Page Explanation
+ Employees make the 15 and The TNO terms and conditions of employment apply
difference this to all employees contracted by TNO, regardless of full-
chart time or part-time employment. Temporary contracts
are customised and sometimes include, restricted or
otherwise, certain compensation for fiscal reasons
given the length of the contract.
+ Employees make the 15 and The TNO terms and conditions of employment apply
difference this to all employees contracted by TNO, whereby each
chart employee has an individual labour contract.
-
+ This In 2011 the RvB approved the document Health and
chart safety: the organisation model in which responsibility
for occupational health and safety is explicitly laid
in the line organisation of Expertise areas, Themes,
Corporate services and TNO Companies. The
introduction of TNOs own orchestration model means
that employees and their managers are co-responsible
for preventing and tackling absence. A substantial
portion of employees is involved in occupational health
and safety, with 350 relief assistants, 60 prevention
assistants, 4 bio-safety officers, 15 radiation experts
and about 400 room supervisors.
-
-
-
- Employees make the 15, 16 Distribution per (type) of employee is not effected
difference and this centrally.
chart
+ Employees make the 15, 16
difference
+ Employees make the 15, 16 TNO policy is for each employee to have an annual
difference performance and development appraisal interview.
+ Employees make the
difference
83/98
GRI TABEL
Description of GRI component Included Section Page Explanation

LA 14 Relationship between basic salaries + Employees make the 15, 16 The TNO terms and conditions of employment apply
of men and women difference and this to all employees contracted by TNO, whereby each
chart employee has an individual labour contract and, of
course, no gender distinction is made in this respect.
HR 1 Investment agreements that contain NR
human rights clauses
HR 2 Verification of key suppliers complying - TNO adheres to Dutch law and legislation such that
with human rights there is no need for supplementary policy in this field.
HR 3 Training in the area of human rights + Corporate social 22, 23 The Development Cooperation team is trained in
responsibility; Innovation for and this acting ethically in developing countries.
Development chart
HR 4 Discrimination + This No instances of discrimination within TNO were
chart reported in 2011.
HR 5 Freedom of association -
HR 6 Child labour NR
HR 7 Imposed or compulsory labour NR
HR 8 Safety personnel trained in complying NR
with organisation policy in respect of
human rights
HR 9 Rights of original population NR
SO 1 Societal activities -
SO 2 Business entities analysed for -
corruption related risks
SO 3 Training in anti-corruption policy + 17 and Integrity is one of TNOs core values within the code of
this conduct. This aspect is part of the introduction course
chart that all (196 = 5% employees) new TNO employees
followed in 2010.
SO 4 Measures following corruption + This Within TNO in 2011 there were no known cases of
chart corruption.
SO 5 Public policy stance NR
SO 6 Contributions to political parties + This TNO makes no financial contribution to political
chart parties.
SO 7 Penalties for anti-competitive + This In 2011 no sanctions were taken related to anti-
activities chart competitive or associated activities.
SO 8 Monetary value of significant + This In 2011 there were no penalties or other measures
penalties chart imposed as a consequence of non-compliance with law
and legislation.
PR 1 Assessment of health and safety -
impact
PR 2 Incidents of non-compliance with -
health and safety regulations of products
and services
TNO ANNUAL REPORT 2011 84/98
GRI TABEL
Description of GRI component
PR 3 Compulsory information on products
and services
PR 4 Incidents of non-compliance with
compulsory information on products and
services
PR 5 Customer satisfaction
PR 6 Legislation concerning marketing
communication
PR 7 Incidents of non-compliance
with legislation concerning marketing
communication
PR 8 Complaints about customer privacy
PR 9 Monetary value of significant
penalties
TNO ANNUAL REPORT 2011
Included Section Page Explanation
-
-
+ Board of Management 10, 11 TNO constantly has its customer satisfaction checked
Report and this by an external, independent agency and supplements
chart this with its own assessments after the completion of
projects. In 2011 some 330 projects were externally
assessed. The overall score (on a 5-point scale) was
4.2 (the same as in 2010). Knowledge/expertise
is regarded as a great strength while delivery time
and price/quality can be improved. This picture is
confirmed by internal assessments. The questionnaire
was adjusted in 2011 to the new strategy and
extended with questions on the economic and societal
impact that the customer had achieved or hoped to
achieve through the project performed by TNO.
-
-
-
+ This TNO was not subject to any penalties in 2011.
chart
85/98
COLOPHON

EDITING AND PRODUCTION

Marketing and Communications

TEXT
Marketing and Communications

DESIGN
BARLOCK, Den Haag

PHOTOGRAPHY
Thijs Wolzak

TNO, May 2012

TNO ANNUAL REPORT 2011 86/98

WE CONNECT PEOPLE
AND KNOWLEDGE

A CONNECTED SOCIETY
TNO STUDIES THE IMPACT OF INFORMATION SOCIETIES AND
ENCOURAGES THE INTRODUCTION OF NEW SERVICES,
APPLICATIONS AND POLICY ON THE BASIS OF THE LATEST ICT,
MEDIA AND SPACE TECHNOLOGY.

FUTURE INTERNET USE

Director of Innovation:
Prof. Erik Fledderus
+31 (0)88 86 670 95 | erik.fledderus@tno.nl

SOCIETAL IMPACT OF ICT

Director of Innovation:
Frank van Aken, MSc
+31 (0)88 86 670 17 | frank.vanaken@tno.nl
MANAGING DIRECTOR
Prof. dr. ir. Erik Huizer
+31 (0)88 86 670 89 | erik.huizer@tno.nl VITAL ICT INFRASTRUCTURES
Director of Innovation:
Erik Peeters, MSc
+31 (0)88 86 672 26 |

SPACE
Director of Innovation:
Bas Dunnebier MSc, PDEng.
+31 (0)88 86 663 85 | bas.dunnebier@tno.nl

TNO ANNUAL REPORT 2011 87/98

WE CONNECT PEOPLE AND KNOWLEDGE

SUATAINABLE ENERGY SUPPLY

TNO CONTRIBUTES TO SUSTAINABLE, EFFICIENT AND A
GUARANTEED SUPPLY OF ENERGY THROUGH INNOVATIONS.

OIL AND GAS

Director of Innovation:
Dr Chris te Stroet
+31 (0)88 86 647 56 | chris.testroet@tno.nl

ENERGY EFFICIENCY
Director of Innovation:
Suzanne van Kooten, MSc
+31 (0)88 86 671 67 | suzanne.vankooten@tno.nl
MANAGING DIRECTOR
Dr. Mart van Bracht
+31 (0)88 86 644 00 | mart.vanbracht@tno.nl NETHERLANDS GEOLOGICAL SURVEY
Director of Innovation:
Tirza van Daalen, MSc
+31 (0)88 86 625 09 | tirza.vandaalen@tno.nl

TNO ANNUAL REPORT 2011 88/98

WE CONNECT PEOPLE AND KNOWLEDGE

STRUCTURAL INDUSTRY COMPETITIVENESS

TNO STRENGTHENS THE INNOVATIVE POWER OF INDUSTRY
BY INNOVATING PRODUCTS AND PROCESSES WITH A STRONG
FOCUS ON SUSTAINABILITY.

HIGHTECH SYSTEMS AND MATERIALS

Director of Innovation:
Dr Egbert-Jan Sol
+31 (0)88 86 654 38 | egbert-jan.sol@tno.nl

MARITIME AND OFFSHORE

Director of Innovation:
Jan Hoegee, MSc
+31 (0)88 86 648 04 | j.hoegee@tno.nl

MANAGING DIRECTOR
Mr. Arnold Stokking, MBA CHEMISTRY
+31 (0)88 86 683 14 | arnold.stokking@tno.nl Director of Innovation:
Dr Arij van Berkel
+31 (0)88 86 621 57 | arij.vanberkel@tno.nl

TNO ANNUAL REPORT 2011 89/98

WE CONNECT PEOPLE AND KNOWLEDGE

A SECURE SOCIETY
TNO FOCUSES ON A SECURE SOCIETY BY CREATING INNOVATI-
ONS TO ASSIST THE WORK OF PEOPLE IN DEFENCE, THE POLICE,
EMERGENCY SERVICES AND INDUSTRY.

DEFENCE
Director of Innovation:
Henk Jan Vink, MSc
+31 (0)88 86 682 01| henk-jan.vink@tno.nl

PUBLIC SAFETY
Director of Innovation:
Mr Ida Haisma
+31 (0)88 86 638 23 | ida.haisma@tno.nl
MANAGING DIRECTOR
Henk Geveke, MSc
+31 (0)88 86 684 53 | henk.geveke@tno.nl

TNO ANNUAL REPORT 2011 90/98

WE CONNECT PEOPLE AND KNOWLEDGE

DYNAMIC URBAN ENVIRONMENT

TNO WORKS ON TRANSITIONS AND INNOVATIONS
THAT CONTRIBUTE TO THE MORE SUSTAINABLE
BUILDING AND DESIGN OF THE AVAILABLE SPACE TO
ENABLE COMFORTABLE LIVING IN A DENSELY POPULATED
COUNTRY.

URBAN DEVELOPMENT
Director of Innovation:
Dr Marianne Kuijpers-Linde
+31 (0)88 86 613 94 | marianne.kuijpers@tno.nl

SUSTAINABLE BUILDING
Director of Innovation:
Dr Henk Miedema
+31 (0)88 86 683 88 | henk.miedema@tno.nl

MANAGING DIRECTOR
Dick Schmidt, MSc
+31 (0)88 86 684 55 | dick.schmidt@tno.nl

TNO ANNUAL REPORT 2011 91/98

WE CONNECT PEOPLE AND KNOWLEDGE

SMARTER MOBILITY ACCELERATES PROGRESS

TNO ACCELERATES PROGRESS BY COMBINING
TECHNOLOGICAL INNOVATION, INFLUENCING HUMAN
BEHAVIOUR AND SMARTER ORGANISATION TO MAKE MOBILITY
CLEAN, QUIET AND SAFE.

ROBUST TRAFFIC SYSTEMS

Director of Innovation:
Dr Michiel Jak
+31 (0)88 86 609 71 | michiel.jak@tno.nl

SAFE AND CLEAN MOBILITY

Director of Innovation:
Leo Kusters, MSc
+31 (0)88 86 657 47 | leo.kusters@tno.nl

MANAGING DIRECTOR
Leo Kusters, MSc
+31 (0)88 86 657 47 | leo.kusters@tno.nl

TNO ANNUAL REPORT 2011 92/98

WE CONNECT PEOPLE AND KNOWLEDGE

VITALITY FOR LIFE

TNO INITIATES TECHNOLOGICAL AND SOCIETAL
INNOVATION TO ENABLE OUR LIVES TO BE HEALTHY
AND CREATE VITALITY FOR LIFE.

HEALTHY FOR LIFE

Director of Innovation:
Dr Nico van Meeteren
+31 (0)88 86 662 60 | nico.vanmeeteren@tno.nl

FOOD AND NUTRITION

Director of Innovation:
Dr Jan Pieter van der Lugt MBA
+31 (0)88 86 618 81 | jan_pieter.vanderlugt@tno.nl

MANAGING DIRECTOR
Dr Niek Snoeij BIOMEDICAL INNOVATIONS
+31 (0)88 86 684 43 | niek.snoeij@tno.nl Director of Innovation:
Dr Peter van Dijken
+31 (0)88 86 684 63 | peter.vandijken@tno.nl

WORK AND EMPLOYMENT

Director of Innovation:
Prof. Paulien Bongers

TNO ANNUAL REPORT 2011 93/98

WE CONNECT PEOPLE AND KNOWLEDGE

TECHNICAL SCIENCES

Director of Research:
Dr Henri Werij
+31 (0)88 86 611 05 | henri.werij@tno.nl

Director of Research:
Hugo Vos, MSc
+31 (0)88 86 664 79 | hugo.vos@tno.nl

MANAGING DIRECTOR Director of Research:

Prof. Peter Werkhoven Dr Machteld de Kroon
+31 (0)88 86 682 25 | peter.werkhoven@tno.nl +31 (0)88 86 663 63 | machteld.dekroon@tno.nl

TNO ANNUAL REPORT 2011 94/98

WE CONNECT PEOPLE AND KNOWLEDGE

EARTH, ENVIRONMENTAL
AND LIFE SCIENCES

Director of Research:
Dr Tineke Brussaard
+31 (0)88 86 650 42 | tineke.brussaard@tno.nl

Director of Research:
Aukje Hassoldt, MSc
+31 (0)88 86 620 90 | aukje.hassoldt@tno.nl

MANAGING DIRECTOR
Dr. Diederik Zijderveld
+31 (0)88 86 684 52 | diederik.zijderveld@tno.nl

TNO ANNUAL REPORT 2011 95/98

WE CONNECT PEOPLE AND KNOWLEDGE

BEHAVIOURAL AND
SOCIETAL SCIENCES

Director of Research:
Peter Schulein, MSc
+31 (0)88 86 639 96 | peter.schulein@tno.nl

Director of Research:
Eric Veldkamp, MSc
+31 (0)88 86 673 05 | eric.veldkamp@tno.nl

MANAGING DIRECTOR
Dr Angelien Sanderman
+31 (0)88 86 672 48 | angelien.sanderman@tno.nl
l

TNO ANNUAL REPORT 2011 96/98

WE CONNECT PEOPLE AND KNOWLEDGE

TNO COMPANIES BV

TNO COMPANIES COMMERCIALISES AND EXPLOITS THE KNOWLEDGE

THAT IS DEVELOPED BY TNO BUT WHICH IS NOT DIRECT TAKEN ON
BOARD BY THE MARKET. WE DO THIS WITH INDUSTRY AND INVESTORS
THEREBY ACCELERATING THE PROCESS OF VALORISATION.
TNO COMPANIES IS ALSO RESPONSIBLE FOR PRIVATISING TNO
ACTIVITIES AND STARTING SPIN-OFFS.

MANAGING DIRECTOR
Victor Elsendoorn, MSc
+31 (0)88 86 698 95 | victor.elsendoorn@tb.tno.nl

TNO ANNUAL REPORT 2011 97/98

TNO.NL
TNO ANNUAL REPORT 2011

99/98