Ed Solutions Can Be Described As the Computer Brain of a Machine, a System Or an Industrial End Product
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passion for embedded solutions annual report 07 TICKETING SYsteMS ONS FOR PUBLIC transport I embedded solutions can be described as the computer brain of a machine, a system or an industrial end product. They are solutions that can be used in a broad range of industrial applications, such as fighter-jet radar systems, ticketing systems for public transport, network solutions for videoconferencing equipment or fiscal measuring systems for oil and gas. data respons’ vision is to be the leader in embedded solutions in Europe by 2010. BEDDED SOLUT M VOICE COMMUNICatION E FOR AIR TRAFFIC CONTROL 2 DATA RESPONS ASA | ANNUAL REPORT 2007 CONTENTS DATA RESPONS 04 CEO’s statement 06 This is Data Respons 08 Solutions 12 Services 14 Products CONTROL SYSTEMS CLOSE to THE CUstoMER FOR MEDICAL EQUIPMENT 20 Denmark 21 Sweden 22 Norway 23 Germany SOLID INDUstRY EXPERIENCE 26 Offshore/Maritime 27 Telecommunications 28 Defence 29 Cross-industry ORGANISATION 33 Our values 34 A career in sales 36 A career in development 38 Data Respons Embedded Pool 40 Group management INVESTOR 42 Investor information 43 Key growth drivers 44 Key figures ANNUAL REPORT 47 The board of directors 48 Directors’ report FINANCIAL STATEMENTS AND NOTES 54 Financial statements 60 Accounting principles 63 Notes 83 Auditor’s report FINANCIAL CALENDAR 2008 15.04.2008 Presentation of Q1 2008 29.04.2008 Annual General Meeting 08.05.2008 Capital Markets Day MEASURING SYSTEMS 10.07.2008 Presentation of Q2 2008 FOR OIL AND GAS 14.10.2008 Presentation of Q3 2008 27.01.2009 Presentation of Q4 2008 DATA RESPONS ASA | ANNUAL REPORT 2007 3 Our focus on continuous improvement will carry on in 2008, to make us an even better partner to our customers. Kenneth Ragnvaldsen, CEO, Data Respons ASA 4 DATA RESPONS ASA | ANNUAL REPORT 2007 Value added Understanding the customer’s challenges creates value. Therefore Data Respons’ most important task is to continuously improve our organisation according to the needs and desires of our customers. Only by developing competitive solutions for our customers can we continue our strong growth and create good value for our shareholders. Our focus in 2007 has been on three key areas: local presence Throughout 2007, we continued to improve our local presence. In total During the last few years, Data Respons’ main focus has been to improve we now have offices in 14 important customer regions in the Nordic the different stages of Embedded Solution value chain. Our partnership countries and Germany. We established a presence in regions like Jut- network has been extended and logistics, test and integration functions land in Denmark, and Linköping and Gothenburg in Sweden. We also have been improved. In addition we have established a new office in showed strong growth in existing regions like Kongsberg in Norway and Taiwan to improve the quality of the solutions flow right from the start. Kista in Stockholm. To have a firm local foundation is essential for pro- Our aim is to offer our customers an even shorter path from specification viding customer-relevant competencies as well as the necessary level of to finished, industrialised product. service and support. We are now starting to see the results of these efforts. Over 50% of our sales were customised recurring solutions in 2007. This represents a a knowledge-based culture growth of around 40%. To be an embedded solution expert, we must attract the best minds and cover a broad range of disciplines within our field. Therefore we I am proud of the effort from our motivated and committed employees have a continuous process of improvement in technology competencies, throughout the year. Our focus on continuous improvement will carry methods and development processes. The last two years, we have been on in 2008, to make us an even better partner to our customers. the primary supplier of embedded solutions that went on to receive the Engineering Feat of the Year Award in Norway. We are proud of this, and it demonstrates Data Respons as a competency-driven company with an adaptable culture. becoming a complete solutions provider Due to the shorter development times and technological complexity of the products, a growing number of customers choose to purchase an em- bedded solution from a partner instead of doing everything themselves. This requires expertise in a wide range of fields in combination with a Kenneth Ragnvaldsen, CEO, Data Respons ASA complete portfolio of embedded computer products. DATA RESPONS ASA | ANNUAL REPORT 2007 5 asker bergen copenhagen helsinki gothenburg karlsruhe kongsberg linköping lund ASIA örebro oslo sandvika skanderborg skullerud sønderborg stockholm taipei This is Data Respons Data Respons’ ambition is to improve our customers’ competitive position by delivering embedded solutions which are optimal from both a technical and a commercial perspective. Our three business areas give customers a choice of paths to co-operation adapted to their own needs. solutions Develops tailored solutions by combining customised HW/SW with advanced computer products from international partners Is involved in one or more phases of the solution’s life cycle Is a strategic partner for the customer services Offers a broad range of expertise and services in embedded solutions Provides resources when the customers need them Participates in many development projects for customers in differ- ent industries products Offers a comprehensive selection of embedded com- puter products Has leading global partners Is Number One in the Nordic region 6 DATA RESPONS ASA | ANNUAL REPORT 2007 data respons in 30 seconds FINANCIAL SNAPSHOT ESTABLISHED: 1986. companies, system integrators and vertical product suppliers. VISION: Leader in embedded solu- KEY FIGURES (NOK million) tions in Europe by 2010. BUSINESS FORM: Public Limited Company. Listed on Oslo Stock Ex- MISSION: To strengthen our change (Ticker: DAT) and is included MNOK 2007 2006 customers’ competitive power by in the information technology index. Operating revenue 635.0 393.0 providing the best solutions. EBITDA 53.0 22.3 OFFICES: Denmark (3), Finland (1), Order reserve 389.0 269.0 LINE OF BUSINESS: Supplies em- Germany (1), Norway (6), Sweden (5) bedded solutions to leading OEM and Taiwan (1). Employees 376 226 REVENUE PER YEAR (NOK million) local presence 800 700 The development of embedded solutions is driven by the customers’ needs and 600 technological opportunities. For Data Respons, a local presence is necessary for 500 establishing good co-operation and developing long-term customer relation- 400 300 ships. Data Respons is therefore present in various local regions in Norway, Swe- 200 den, Finland, Denmark, Germany and Taiwan. 100 0 2003 2004 2005 2006 2007 global presence Data Respons has co-operated with world-leading partners from the USA, Eu- rope and Asia for a number of years. This co-operation offers a number of ad- EBITDA PER YEAR (NOK million) vantages from which our customers derive significant benefits. Data Respons continuously receives information on new developments in the embedded 60 50 market. Our network provides a global presence and flexibility which contrib- 40 ute to an efficient solution-oriented, co-operative environment. 30 20 10 0 -10 2003 2004 2005 2006 2007 2007 highlights REVENUE BY BUSINESS AREA SOLUTIONS strong financials 34% Operating revenue of NOK 635.0 million 52% PRODUCTS EBITDA of NOK 53.0 million SERVICES 635 Proforma operating revenue of NOK 696.9 million 14% million Proforma EBITDA of NOK 56.9 million strategic aquisitions REVENUE PER COUNTRY Digitas AS located in Asker, Norway Sylog Sverige AB located in Stockholm, Sweden Syrén Software AB located in Gothenburg and Stock- 3% DENMARK holm, Sweden 24% € 44% GERMANY NORWAY new regions 29% SWEDEN Establishment in Taipei, Taiwan Establishment in Linköping, Sweden .tw Establishment in Skanderborg and Sønderborg, Denmark REVENUE BY INDUSTRY strong sales TELECOM Order intake of NOK 763 million 27% 24% Order reserve of NOK 389 million OFFSHORE 763 Embedded solutions sales of NOK 334.3 million 17% CROSS-INDUSTRY million (accounted for 52% of total sales in 2007) 32% DEFENCE Record high contract of NOK 63 million DATA RESPONS ASA | ANNUAL REPORT 2007 7 Data Respons’ leading position in the embedded market is based on the abilty to deliver customised embedded solutions that combine embedded computer products SOLUTIONS and expertise. Unique mix Embedded solutions must be adapted to each individual customer. This requires a unique mix of expertise in a broad range of disciplines, combined with a com- plete product portfolio of embedded computer products. The challenge for many companies is simultaneously to meet the demands for faster product development, the implementation of new technology and maintenance of REVENUE, SOLUTIONS 2003-2007 (NOK million) a competitive cost structure. 350 By allowing specialists to make future technology choices, customers will benefit 300 250 from Data Respons’ experience and expertise during an important phase of the 200 product’s life cycle. In addition, they will have greater assurance that the techno- 150 logy is future-oriented, provides increased functionality and improves profitability 100 in the long run. 50 0 2003 2004 2005 2006 2007 Every year Data Respons participates in many development processes for advanced products and solutions. Upon completion of the development and quality assurance, we arrange an efficient production run until the next generation. Time and time again Data Respons sees that the transition