annual report 2009 09 COMMUNICatION SYsteMS FOR AIR TRAFFIC CONTROL MEASURING SYSTEMS CONTROL SYsteMS FOR OIL AND GAS FOR POWER GeneratION 2 DATA RESPONS ASA | ANNUAL REPORT 2009 Data Respons’ vision is to be a leader in embedded solutions in Europe by 2010. CONTENTS EMBEDDED SOLUTIONS 02 DATA RESPONS 04 CEO’s statement EMBEDDED SOLUTIONS are computer systems 06 This is Data Respons that perform one or more dedicated tasks, and can be described as the computer brain of a machine, 08 BOARD OF DIRECTORs’ REPORT a system or an industrial end product. 15 The Board of Directors Embedded solutions can be used in a broad range 16 INVESTOR INFORMATION of industrial applications, such as fighter plane radar 17 Growth drivers systems, ticketing systems for public transportation, 18 Key figures network solutions for video conferencing equip- ment or fiscal measuring systems for oil and gas. 20 FINANCIAL STATEMENTS AND NOTES 21 Statement of comprehensive income 22 Statement of financial position DATA RESPONS supplies embedded solutions to 24 Equity statement leading Original Equipment Manufacturers, system 25 Cash flow statement integrators and vertical product suppliers. 26 Notes 46 Auditor’s report FINANCIAL CALENDAR 16.04.10 Presentation of Q1 2010 22.04.10 Annual General Meeting SURVEILLANCE SYsteMS 09.07.10 Presentation of Q2 2010 FOR MEDICAL EQUIPMENT 15.10.10 Presentation of Q3 2010 26.01.11 Presentation of Q4 2010 DATA RESPONS ASA | ANNUAL REPORT 2009 3 CHAPTER 1: DATA RESPONS CEO’s statement During 2009 we completed some of our most complex and innovative projects. LOOKING AHEAD We have implemented a series of initiatives making us more efficient and focused, and as a result we have increased our competitiveness. The company is lean and our staff are alert, which gives us reason for optimism going forward. a challenging year behind us been working on leading-edge projects in the as a change agent for our customers. Our goal The financial crisis and the subsequent world- medical, offshore, defence, clean tech, auto- is to deliver speed, quality and improved cost- wide recession had a profound impact on the mation, transportation, telecoms and other effectiveness. The solution model, with local climate for our customers and partners. As a industries. Our solutions are embedded in expertise and a flexible and cost-effective pro- result we were confronted with sudden shifts systems and products for world-class compa- duction setup in Asia, provides a strong value in market demand in some regions, and our nies, as well as by medium-size players and proposition to our customers. customers have been careful with their in- innovative start-ups. vestment policies, R&D projects and product Secondly, during the year we have imple- procurements. The recent customer survey shows that we mented changes, sharpened our business have improved overall results over last year. model and processes, increased our sales en- change Of course, this is no reason to rest on our lau- ergy, reduced the cost base and improved our Data Respons has demonstrated the ability to rels, as we continuously need to improve our powers of execution. change and act quickly in a challenging year. expertise, processes and value chain. Never- This is vital for survival in a volatile world. Lo- theless, this is a positive reminder of our good Thirdly, we see some signs of optimism in the cal responsibility and local decision-making work after a demanding year for us all, and economy. Several industries and customers ex- power have been crucial, giving us both the it tells me something about the potential in pect better conditions going forward. Further- energy and the local knowledge needed for our organisation: our employees are strongly more, the need for more intelligent products precise actions and changes. Our efforts have motivated. and increased functionality and services remains produced results: after a tough second quar- evident and is no doubt a long-term trend. ter, the company returned to profitability for renewed optimism the rest of the year. In spite of the fact that we still face a chal- On this background, we are expecting profit- lenging market, I have an optimistic view of able growth in 2010. strong effort the future. Despite the challenging economic environ- ment, it is important to bear in mind that Firstly, Data Respons has a strong vision, strat- during 2009 we completed some of our most egy and competitive concept that position us complex and innovative projects. Our en- well in a long-term growth market. We are a gineering experts and solutions teams have total provider of embedded solutions and act Kenneth Ragnvaldsen, CEO, Data Respons ASA 4 DATA RESPONS ASA | ANNUAL REPORT 2009 CHAPTER 1: DATA RESPONS CEO’s statement DATA RESPONS ASA | ANNUAL REPORT 2009 5 CHAPTER 1: DATA RESPONS This is Data Respons HELSINKI BERGEN OSLO KONGSBERG VÄSTERÅS STOCKHOLM STAVANGER LINKÖPING GOTHENBURG ÅRHUS LUND ASIA GRÅSTEN COPENHAGEN TAIPEI ERLANGEN KARLSRUHE THIS IS Data RESPONS Data Respons supplies embedded solutions to leading original equipment manufacturers, system integrators, application providers and vertical product suppliers. Our three business areas enable customers to choose a form of collaboration that suits their needs. solutions products Data Respons develops tailored solutions by Data Respons offers embedded computer combining customised HW/SW with computer products from world-leading partners that products from leading partners. We are: cover all relevant industrial standards. In this business area we: Involved in one or more phases of the solution’s life cycle Are number one in the Nordic region A strategic partner for the customer Minimise time to market through quick access from our global partners services Offer tried-and-tested products Data Respons offers experienced specialists for demanding industrial with a broad range of expertise from different environments disciplines. In this business area we: Provide local access to a high level of exper- tise when needed Participate in many development projects for customers in different industries 6 DATA RESPONS ASA | ANNUAL REPORT 2009 CHAPTER 1: DATA RESPONS This is Data Respons Data Respons offers full-scale embedded solutions, covering all phases from specification, development, testing and delivery to the next generation. ESTABLISHED: 1986. FINANCIAL SNAPSHOT VISION: To be the leader in Europe in embedded KEY FIGURES TS solutions for the industrial market by 2010. NOK million 2009 2008 Operating revenue 726.1 818.5 C MISSION: To strengthen our customers’ competi- EBITDA -20.6 62.4 tiveness by providing the best embedded solutions, Order backlog 425 515 A products and services on the market. Employees 464 511 F BUSINESS FORM: Public limited company, listed on the Oslo Stock Exchange (ticker: DAT). REVENUE PER YEAR (NOK million) Y 1000 CERTIFICATIONS: ISO 9001:2000, ISO 14001:2004 800 600 NUMBER OF EMPLOYEES: 464 400 KE 200 0 2005 2006 2007 2008 2009 REVENUE BY BUSINESS AREA close to the customer Data Respons forms a part of local industrial networks in several important regions in Den- Solutions 43% mark, Finland, Germany, Norway, Sweden 48% Products and Taiwan. This is vital in order to provide Services customer-relevant skills, services and support 9% as well as developing long-term customer re- lationships. REVENUE PER COUNTRY solid industry experience 7% Different industries have varying requirements Norway in order for an embedded solution to work 33% Germany 39% in a specific environment. Data Respons has Sweden developed solid industry expertise in various 21% Denmark industries such as defence, medical, offshore/ maritime, transportation, energy and telecom- munications. REVENUE BY INDUSTRY passion for embedded solutions 10% Defence 6% 21% Energy Data Respons has a working environment that 11% Medical combines technology, the best engineering minds Offshore 25% in the industry and a committed sales team. The 18% Telecom will to succeed, a tremendous thirst for knowl- Transportation 9% Other industries edge and a burning passion for embedded solu- tions characterises employees throughout the organisation. DATA RESPONS ASA | ANNUAL REPORT 2009 7 CHAPTER 2: BOARD OF DIRECTORs’ REPORT Board OF DIRECtors’ report Data Respons have shown the ability to change and act KEY FIGURES quickly in a challenging year. The Board is pleased with the NOK million 2009 2008 company returning to profitability in second half of 2009, Operating revenue 726.1 818.5 EBITDA -20.6 62.4 despite the demanding environment. Order backlog 425 515 Order intake 636 945 from operations in 2009 was positive with Employees 464 511 statement on the annual financial statements NOK 3.8 million. The order intake during 2009 totalled NOK 636 million (945), and the order In accordance with article 3.3a of the Nor- backlog was NOK 425 million (515). REVENUE (NOK million) wegian Accounting Act, the Board confirms 1000 that the company fulfils the requirements nec- Data Respons has prepared pro forma state- 800 essary to operate as a going concern, and the ments per country where historical figures from 600 2009 financial statements have been prepared acquisitions are included, as shown in Note 22. 400 on the basis of this assumption. As a listed 200 company, Data Respons ASA prepared the In 2009 the financial crisis heavily affected the 0 consolidated financial statements for the Data customers of Data Respons. During the first 2005 2006 2007 2008 2009 Respons Group for the 2009 financial year in half of 2009 there was a historic, steep decline accordance with IFRS (International Financial in the demand for services and products for our Reporting Standards). customers in their industrial end-markets. This EBITDA (NOK million) resulted in a tough situation for all members of 80 income statement the value chain. In 2009, the impact for Data 70 60 The report includes comparisons with figures for the Respons was postponed decisions for new 50 40 same period in 2008 (in brackets).