A N N U A L R E P O R T 2 0 0 8
of today’s society. It’s about
couldn’t even have dreamt of ten years ago but which are now available to all.
When even grannies are buying bus tickets on their mobiles, you know things have really moved on. The other pages were about the same sort of thing, I think ...
B.
4
HiQ in brief
HiQ for dummies.
Pages 10, 13 and 91.
HiQ is an IT- and management consultancy specialised in communication and software development. At HiQ we master the tech- nology as well as how to make money on it.
We are a pure consultancy that is not developing our own products but we use 100 % of our competence to help our clients to increase their competiveness by adding the specialist competence they don’t possess. HiQ is organised in ten subsidiaries with more than 1,000 employ- ees. HiQ has ten offices in four countries:
Sweden, Denmark, Finland and Russia.
How much HiQ is there in your life?
Page 14.
In a world where Google has taken the place of standard reference works and the tele- phone kiosk has shrunk and simultaneously expanded into a wallet/camera/film/GPS/
music/TV/SMS-enabled mobile, you can see the results of what we and our clients are do- ing everywhere in your life.
We develop telecoms networks and systems, masses of Internet-based services, your next mobile phone and simulated environments for training JAS pilots. And then there are the share-trading systems, Internet-based gam- ing and betting services, and software for smart cars that see in the dark and communi- cate with their surroundings. To name a few.
HELSINKI /ESPOO
MOSCOW KARLSKRONA
COPENHAGEN LUND
GOTHENBURG LINKÖPING ARBOGA
STOCKHOLM
New record for the sixth year in a row!
Page 8.
Yet another best-ever year for HiQ. For the sixth year in a row we set new records for both sales and profit. Sales increased to SEK 1,181.5 million and operating profit rose to SEK 193.9 million.
The profit margin was 16.4 percent and the Board of Directors is proposing a total distribution of SEK 72 million, which is wholly in line with our dividend policy. And we won Veckans Affärer’s survey “Best IT-consultancy 2009”. I feel humbled by the challenges we face in 2009 but at the same time optimistic, knowing that HiQ has a very strong brand, fantastically talented employees and extensive freedom of action thanks to our strong financial position, says Lars Stugemo, President and CEO of HiQ International AB.
HiQ in figures 2008.
Pages 32 and 45.
For 2008 we are reporting our highest-ever sales and profit. Sales increased by 21% to
SEK 1,181.5 million. Operating profit increased to SEK 193.9 million, giving an operating profit margin of 16.4 percent. At year-end the headcount was 1,090.
HiQ’s top 10 clients account for 56% of sales.
Sales to top 10 clients.
Page 17.
Sales increased to SEK 1,181.5 million, representing growth of 21%
The operating profit was SEK 193.9 million.
Sales by business sector.
Page 17.
NET SALES
1200 1000 800 600 400 200
801.4 973.7
1181.5 Mkr
04 05 06 07 08 720.5
512.9
Our clients come from many different business sectors.
Top 10 clients 56%
(59%)
Telecoms 49% (50%)
Security & defence 8% (9%)
Banking, finance &
insurance 7% (7%) Industry 13% (11%)
Gaming &
entertainment 7% (9%) Automotive 10%
(9%)
Public sector 6%
(5%)
Best IT-consultancy 2009.
Pages 8 and 21.
HiQ has been selected Best IT-consultancy 2009 in a survey by Swedens business weekly Veckans Affärer.
154.9
182.3193.9 Mkr
04 05 06 07 08 148.3
71.1 200
175 150 125 100 75 50 25
OPERATING PROfIT
HiQ i korthet
Who is Bengan?
The dog you will spot from time to time in our annual report is a Saluki. He is called Bengan and he’s been representing us in our communications for several years.
The Saluki is probably the oldest breed of dog in the world. Paintings and other finds from the Middle East show that the breed is almost 6,000 years old.
The Saluki was the sporting dog of kings, yet it was also a vital, highly prized hunting dog to the nomadic Bedouin tribes. It was so fast that it could be used to hunt the swiftest gazelles.
Traditionally, a Saluki was never sold.
However, it could be given away as a sign of friendship or respect. Indeed, the first Salukis to arrive in the western world were gifts. The first came to Europe in the mid-19th century as a gift presented to an English colonial administrator. Later, British and French officers stationed in the Middle East also received Salukis as gifts and brought them back to Europe, where they came to stay.
As a puppy the Saluki is naturally very playful, and will often remain so as a fully- grown dog – sometimes even throughout its life. The Saluki is known for its ele- gance, endurance and speed. It can reach speeds of up to 70 km/h – and not just in short bursts, but also over long sustained stretches. The Saluki is a wilful animal and wants to follow its own path.
You can never tell exactly where a Saluki is going, only that it will get there faster than anyone else.
Contents
HiQ 2009 in brief . . . 4
CEO – Lars Stugemo . . . 8
Introduction . . . . . . . 10
Business overview . . . 13
Areas of expertise . . . 14
Clients and sectors . . . . . 17
Cases . . . . . . . 18
Vision, business concept and goals . . . . . . . 21
Strategies . . . . . . . . . . 23
Employees . . . . . . . 25
Structural capital . . . . . . . 30
Five-year review . . . 32
Risk . . . . . . . 34
The HiQ share . . . . . . 37
Directors’ report . . . 41
Consolidated income statement and balance sheet . . . 45
Changes in shareholders’ equity for the Group . . . . . 47
Consolidated cash flow statement . . . . . . . 48
Parent Company income statement and balance sheet . . . . 49
Changes in shareholders’ equity for the Parent Company . . . 51
Parent Company cash flow statement . . . 52
Notes . . . . . . 53
Auditors’ report . . . 83
Corporate governance . . . 84
Management . . . 88
Board of Directors . . . 90
Organisation . . . . 91
Definitions of key ratios . . . 92
History . . . 93
Addresses . . . 94
Annual General Meeting
The Annual General Meeting will take place at 10 a.m. on 29 April 2009 at HiQ’s offices at Mäster Samuelsgatan 17, 9th floor, in Stockholm. Notice of the Annual General Meeting will be published in the newspapers Post- och Inrikes Tidningar and Svenska Dagbladet, as well as on the company’s website, www.hiq.se Upcoming financial information The Annual General Meeting will be held on 29 April 2009.
The interim report for the period January-March will be presented on 28 April 2009.
The interim report for the period January-June will be presented on 18 August 2009.
The interim report for the period January-September will be presented on 19 October 2009.
The year-end release for 2009 will be presented on 2 February 2010.
for more information, please contact:
Annika Billberg, Head of Corporate Communications and Investor Relations Manager
tel. +46 (0)8-588 900 15, +46 (0)704-200 103, annika.billberg@hiq.se
8
CEO – Lars Stugemo
New record for the sixth year in a row!
The market in 2008 was strong, particularly at the beginning of the year. In fact, in many ways, the first half of the year can be com- pared to the record years 2000 and 2007, with very high demand for specialised IT services.
At the end of the year, we saw how the global financial crisis was spreading into a large number of sectors, resulting in a tougher mar- ket situation. This means that we have now entered a new year where there is uncertainty surrounding the market situation.
I feel humbled by the challenges we and our clients face but at the same time optimis- tic, knowing that HiQ has a very strong brand, fantastically talented employees and extensive freedom of action thanks to our strong finan- cial position.
A broader HiQ in 2008
As usual, there’s no such thing as a free lunch.
Behind our success are years of experience, know-how and a high level of commitment. In 2008 we developed HiQ in order to help our cli- ents even better than before and, as a result, increase both our sales and profit.
During the year we allowed HiQ to grow in breadth, both in terms of geography and expertise. We are now working with more
clients in more sectors than ever before.
Of course we work continuously to trim and develop our operation. For example, in Gothenburg we have integrated a business area into our ordinary operation. In addition we have adapted our capacity in Russia to the current market conditions.
We also made two strategic acquisitions:
HiQ Ace in Linköping, which has leading clients within the defence, automotive and telecoms sectors; and HiQ Quality Services in Helsinki, which further consolidates our position within quality assurance and further strengthening our position in Finland.
HiQ was ranked no.2 in the best employ- er list based on a survey carried out by Universum Communications in which employ- ees are asked to grade their employers. And we won “Best IT consultancy 2009” in the annual survey conducted by the Swedish busi- ness weekly Veckans Affärer.
During 2008 we signed a large number of important agreements and framework agree- ments with leading players. We won a major new order from FMV, the Swedish Defence Materiel Administration, and we signed new framework agreements with clients including PTS, Veikkaus, Ace Interactive, BAE Systems Yet another best-ever year for HiQ. for the sixth year in a row we set new records for both sales and profit. Sales increased to SEK 1,181.5 million and operating profit rose to SEK 193.9 million. The operating profit margin was 16.4 percent and the Board of Directors is proposing a total distribution of SEK 72 million, which is wholly in line with our dividend policy. Today we have strong cashflow, an unlevered balance sheet and a good cash position – important factors that provide us with good opportunities in an economical down-turn.
Bofors, Ascom Sweden, TDC Sverige and Saab AB. Taken together, all this resulted in 2008 being a record year despite the fact that the global financial crisis developed into a broad economical down-turn.
Then and now
The difference between this downturn and the last one is that the one 2001/02 specifi- cally affected the IT and telecom sectors, and severely so. The current downturn is more gen- eral in nature, and is affecting the IT sector too, though not at all in the same way as last time, which saw castles in the air rapidly deflate and companies disappear.
When I look back on HiQ at that time, there are big similarities with HiQ today but a whole series of differences too. At that time we were a company of around 400 employees with six offices in the Nordic region. Today, HiQ has more than 1,000 employees at 10 offices in the Nordic region and Russia. Back then, 80 per- cent of our business was within the telecoms and defence industries and only 20 percent of our sales came from other sectors such as finance, automotive and gaming. Now the pro- portion of our sales that comes from telecoms and defence is just under 60 per cent. A full 40 percent now comes from the automotive indus- try, gaming, finance and the public sector. In other words, we now have a greater breadth in our client base. Back then we were a company with a very strong financial situation, good profitability and a very good reputation on the market. This helped us in the economic down- turn and meant we were able to step on the gas while others were standing still, or even in reverse. Today, we have an even stronger offer- ing, an even stronger brand, long-term client relationships, strong cash flows and an unlev- ered balance sheet. These are important fac- tors in an economic downturn and provide us with good opportunities, we know that, based upon previous experience.
Many signs for a tough but good 2009 Our situation is similar to where we were in 2002. We analyse our clients’ needs and work to develop HiQ, making us an even better serv- ice provider and giving us even better opportu- nities to help our clients, with their challenges.
There are also other factors except the ones I have already mentioned, that indicates that HiQ will stand strong in the current down-turn.
To put it in extremely simplified terms, we have two client groups: companies that develop products and services, and companies where IT
is a business-critical part of operations. That is two client groups with their specific challenges.
The companies that sell products and services can’t stop their development work just because times aren’t so good this year, because then they won’t have any products to sell next year or the year after that. I can cite an example from 2002. This period, which to an outsider can be characterised as an extremely difficult time in the history of IT, saw the devel- opment of all the functions mobile phone man- ufacturers have competed on in recent years, e.g. colour screens, camera functions, MP3 players, GPS and 3G. And HiQ was very much involved in the process.
The second client group – public sector, banks and insurance companies, etc. with major business-critical systems – can freeze the development of their systems for a rela- tively short period of time. But the systems fairly quickly become outdated, fall behind in terms of capacity or are overtaken by easier- to-use systems and services offered by their competitors.
So technological development will continue in 2009. New products, services and systems continue to be developed. New companies arise with new business ideas and business models, based on IT and communication. Even if the economical situation is weaker and the business climate cooler.
HiQ is at the heart of society, and, on behalf of our clients, we develop a large number of the products and services used to communicate with each other, with companies, between companies or with the public sector. Everything we do with our clients is used for some or other form of communication used by millions of peo- ple every day.
HiQ will continue to recruit the best employ- ees and maintain a high quality of collaboration with our clients. Our vision is to be northern Europe’s leading IT and management consul- tancy. With our heart in the Nordic region, we provide services within communications and software development to clients operating in a globally competitive environment regardless of economical cycle.
Our goal, as always, is to be the best con- sulting company for our clients, employees and shareholders. We fight hard to make this apply also to 2009, that I believe will be a tough but good year.
Lars Stugemo
President and CEO of HiQ International AB 25 March 2009
10
Introduction
HiQ for dummies
AREAS Of ExPERTISE
We have long experience and a high level of expertise within the areas of
telecoms, mobile telephony, simulation technology, business-critical systems,
interactive games and platforms and IT solutions for vehicles.
BUSINESS fOCUS
HiQ is an IT and management consultancy specialised in com-
munication and software deve- lopment. At HiQ we master both the technology and how to make
money out of it.
We are a pure consultancy company that are not developing
our own products, but we use 100 % of our competence to
help our clients.
We are more than 1,000 employees at 10 offices in Sweden, Denmark, finland
and Russia.
SECTORS
We operate in sectors such as telecoms;
industry: automotive; gaming & entertainment;
banking, finance & insurance; public sector and security & defence.
CLIENTS
In conjunction with more than 200 clients,
we develop large quantities of the high-tech products, services, systems and networks that you use in
your everyday life.
Our clients include ABB, Ascom Sweden, Bombardier,
Com Hem, Ericsson, GTECH, Handelsbanken, Nasdaq OMx,
Nokia, Outukompu, PBI Dansensor, PTS, Saab,
SEB, Semel, Skatteverket, Swedbank, Veikkaus, Volvo,
Tele 2 and Telenor.
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Mobile communication can be good How nice to always be reachable, every- one said when mobile phones first became popular in the early nineties. But how do we feel today? Here’s an example: I’d sneaked off to get some peace and quiet and take a long break at a nice cafe.
What happens? There’s a phone call from the office, but I reject the call. So far, so good... But just quarter of an hour later they pop up behind me, hav- ing located me using GPS!!! Switching off your mobile is one route to peace and quiet. It’s good while it lasts, but nothing lasts for ever. When you switch on again, you have 111 messages to deal with. But there are many good aspects of mobile communication too. I’ve heard
that music no longer costs anything.
I don’t have to talk to people but can send text messages instead, for example I can text my pizza order to be deliv- ered to my home rather than making small talk to the pizza baker while I wait for it. I can also play games on my mobile when people around me want to talk. Or sit by myself and watch a film when I’m with friends.
I’m not alone here: sometimes you just want to be yourself. And this is some- thing I can thank HiQ and their clients for.
B.
Specialists in what our clients are lacking HiQ are specialists in communications and software development. We use our in-house expertise to help our clients develop systems, products and services within telecoms, new mobile phones, cars, and various types of simulator such as the JAS 39 flight-training simulator and simulators used for quality testing when helping our clients develop new mobile phones.
We also develop games and platforms for online gaming on the Internet, IT solutions for vehicles and a large number of different business-critical systems, for example for share trading.
All these are products and services we have quickly embraced and come to see as a natural part of our lives. We are using significantly more advanced technology and a greater num- ber of sophisticated services in our daily lives compared with just a few years ago.
This accelerating technical trend means developing new products and services is be- coming increasingly complicated. It is therefore becoming difficult for our clients to have all the expertise and the human resources needed to develop new items quickly and compete successfully on the market. Some companies simply choose to outsource research and devel- opment, while others do much of the develop-
ment work themselves but bring in the external expertise required.
One way of increasing competitiveness is to use a specialised consulting company such as HiQ. In order to help our clients in the best way we can, we have chosen to be specialists not generalists: we have chosen to specialise in what we’re really good at. This means we can support our clients and offer them the specific expertise they need.
Technology and business
At HiQ we master both the technology and how to make money out of it, which is a prerequisite to deliver the best solutions to our clients.
Regardless if we are going to help our clients to increase their revenues or lower their costs.
Our tools are high technical competence and long experience within business and opera- tional development.
Purely a consulting company
We are purely a consulting company and act as independent advisers with the client’s best interests in mind. We do not develop any proprietary products that compete with those of our clients, but devote 100% of our expertise to our clients.
Specialists in communications and software development
HiQ is an IT and management consultancy that specialises in communications and software development. Our tools are high technical competence and long experience in business and operational development.
communication
HiQ is an IT and management consultancy that works with communications and software develop- ment: communication at work, at home, in the car, on your mobile or anywhere in society. fixed or mobile systems, large or small. We also develop simulated environments for testing, training and education. We use simulated environments to test various products, services and other communi- cation solutions before they are launched on the market.
software development
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Areas of expertise
How much HiQ is there in your life?
Telecoms
You communicate with other people. And with systems that communicate back to you. Sys- tems also communicate with each other. A large part of your life is based on you and all these high-tech products, services, systems and net- works talking to each other in the right way and with sufficient capacity. In practice this means your computer, mobile, TV games console, TV, music system, etc. working together and com- municating with the world around you.
HiQ has long had a strong position within telecoms, and works with most of the suppli- ers, operators and users in the Nordic region.
Recent examples of our work within telecoms include a co-Nordic for Telenor, where we coor- dinate processes and administration of systems within the distribution stage. We also have
worked on a full-service solution with different functions for the taxi sector, for example pay- ments and bookings. We have also worked on the roll-out of new broadband services, project management for the development of new com- munication services, development of company portals and system integration.
Mobile telephony
We still call them mobile phones, which is quite funny given that many people now see the facility to make a phone call as an increasingly minor element of what a mobile has to offer. For many years we and our clients have been devel- oping and combining ever more functionality in your pocket-format high-tech communications centre: wallet, camera, video camera, TV, hi-fi In a world where Google has taken the place of standard reference works and the telephone kiosk has shrunk and simultaneously expanded into a wallet/camera/film/GPS/music/TV/SMS-enabled mobile, you can see the results of what we and our clients are doing everywhere in your life.
We develop telecoms networks and systems, masses of Internet-based services, your next mobile phone and simulated environments for training JAS pilots. And then there are the share- trading systems, Internet-based gaming and betting services, and software for smart cars that see in the dark and communicate with their surroundings.
We combine all these within six areas of expertise that we call telecoms, mobile telephony, simulation technology, business-critical systems, interactive gaming and platforms, and IT solu- tions for vehicles.
Read on and discover how much HiQ there is in your life.
system, computer, GPS and radio. At the same time we have developed loads of useful serv- ices for you the user.
HiQ works with the major manufacturers and helps them to develop and quality-assure new mobile phones, as well as mobile plat- forms and services. We also work on systems and support systems for most types of mobile telephony system.
As well as being involved in the develop- ment of many new mobile phones over the last year, we have also, for example, devised a pay- ment system used by 30 mobile operators and created a directory enquiries service for Eniro.
Simulation technology
One of our longest-standing areas of expertise is developing software for simulated environ- ments. We are the market leaders in simulation technology in the Nordic region and work with many different clients in the field.
We develop high-tech simulators for pilots training to fly the JAS 39 Gripen or refresh- ing their skills. But we also develop simula- tors used for development and testing of new mobile phones, new solutions within the automotive industry and several other sectors.
For example we help BAE Systems Bofors to develop simulators used for tests in the product development phase.
Business-critical systems
Probably you own shares or units traded on the stock market? You also communicate with insurance companies on different matters, just as you do with government agencies and your bank. What all these sectors and public authori- ties have in common is that they include clients of HiQ, and that the clients use systems that are crucial to their operations and business;
systems with high specifications in terms of performance, reliability and availability. Often it’s a case of systems that need to run 24/7, for example transaction systems for banks or case- handling systems for public authorities.
One example is Nasdaq OMX, which we have been working with for over ten years and where we are now working on test automation of the new-generation trading platform. An-
other is development of high-volume transac- tion systems for a number of Nordic banks.
Interactive gaming and platforms Luck or judgment, or maybe a bit of both?
Internet-based gaming and betting are a world- wide success story. You can bet on anything:
horses, football, cricket, even the colour of the celebrity of the week’s next outfit. Demand for interactive gaming options is growing, particu- larly within the area of sports games.
We work mainly with interactive betting and sports games. We are the leading player in this area in the Nordic region and, together with our clients, develop and implement platforms for gaming and the games themselves. But we also develop advanced solutions to handle security, accessibility and performance.
The games are designed to be played on your mobile phone or computer. Our clients include the world’s biggest companies within gaming and lotteries, a number of well-known, long-established Nordic gaming and betting companies, and several new ones.
IT solutions for vehicles
The automotive sector is constantly evolving, and in recent years more so than ever with the market screaming for more fuel-efficient engines and new engine technologies.
We work with a number of global car manu- facturers and help them to develop software in cars featuring artificial intelligence for active safety, advanced infotainment systems and hybrid technology.
For example, we are working with a leading vehicle manufacturer to develop an advanced sensor system that senses the car’s surround- ings. Should a dangerous situation arise on the road, the system senses this and helps the driver to deal with it, for example by preparing the car’s braking system for an emergency stop.
Other examples within active safety include cars that see in the dark, cameras that help the driver to keep tabs on blind spots, and ad- vanced anti-skid systems.
16
Am I normal?
I usually say, “Ask not what technology can do for you; ask what you can do for technology.” Sad as it is, when I go for a walk in the forest I philosophise about technology. And wonder about the technology we’ll have in the future.
For example, how will we do our food
shopping? In the early days of the Internet, a number of shops started offering online shopping. But this didn’t lead to any great shopping revolution; after all, people like to see whether their tomatoes are rotten or under-ripe, or at least those seem to be the two options available during the winter months. Things are better in the summer, when they may even be just right. NO – we want more! I think shops will have small voice- controlled trucks with laser navigation and
a web camera with sharp focus. Then I could take my walk in the forest and talk to the truck on my mobile, follow the truck’s work in pictures on my mobile, and give orders such as “pick up the large tin of duck’s liver in front of you, go right and pick up a small white loaf then continue to the deli counter and take 100 g gherkins, then go to the check-out”. Dinner is served!
I’ve heard that HiQ and their clients have a lot of know-how in this area. Let’s go!
B.
It’s certainly fantastic what technology can do for people. Now they’ve developed a camera with inbuilt printer so you can take a photo and print it out straight away.
Ehh...
Our clients are driving technological development
Our clients are global or Nordic high-tech companies that are driving technological development forward in their efforts to simplify the everyday life of the consumer. They are active in sectors such as telecoms, gaming & entertainment, automotive, security & defence, industry, public sector and banking, finance & insurance.
Telecoms
We have a very strong position within telecoms, and have been working for a long time with suppliers, operators, users and the regulatory authorities in the telecoms sector. Here’s a taster from our client list: Ascom Sweden, Ericsson, Nokia, Telenor, Com Hem, Glocalnet, Tele2, Teracom and 3.
Gaming & Entertainment
Together with our clients we have been develop- ing platforms for online gaming for more than ten years. HiQ’s leading position in this sector is a strength as the number of players has histori- cally been stable and is growing at a time of economic downturn. Our clients include GTECH, Veikkaus, Hippos, Svenska Spel, Ace Interactive and De Lotto.
Automotive
HiQ works on integration, development and testing of telematic solutions for the vehicle models of the future. Together with our clients we participate in a large number of projects and develop systems for active safety.
We work with leading clients such as Dana- her Motion, Bombardier, Haldex Traction, Scania, Volvo Cars and Volvo Group.
Banking, finance & Insurance
HiQ’s intensified efforts in the financial sector have resulted in new business and a broader client base.
We specialise in developing, testing and administering high-volume transaction sys-
tems for securities handling for clients such as Handelsbanken, Nasdaq OMX, Neonet, Nordea, SEB and Swedbank.
Security & Defence
HiQ has been working on the development of training simulators for the JAS fighter plane for almost 15 years in close collaboration with Saab Aerosystems and FMV, the Swedish Defence Materiel Administration. BAE Systems is another successful client within this area with whom we are working to develop development simulators and test equipment.
Industry
IT is becoming increasingly business-critical for players in the manufacturing industry in the Nordic region and there is growing demand for IT support processes. HiQ specialises in develop- ing integrated systems and works with leading industrial players in the field.
Typical clients include ABB, Atlas Copco, DeLaval, Outokumpu and Vägverket Produktion.
Public Sector
In this area we work with public authorities and organisations to develop an IT environment that helps to rationalise and strengthen operations and increase the level of service. Examples of cli- ents include the Swedish National Tax Board, the Swedish Emergency Management Agency (now part of the Swedish Civil Contingencies Agency), the Swedish Enforcement Authority, the Swedish Radiation Safety Authority, and Tekes in Finland.
Telecoms 49% (50%)
Security & defence 8% (9%)
Banking, finance &
insurance 7% (7%) Industry 13% (11%)
Gaming &
entertainment 7% (9%) Automotive 10%
(9%)
Public sector 6%
(5%)
HiQ’s top 10 clients account for 56% of sales.
Our clients come from seven different business sectors.
Top 10 clients 56%
(59%)
Sales to top 10 clients Sales by business sector
Cases
18
ECHA background
ECHA is and will remain over the coming years the fastest growing EU body with a long list of regulatory tasks with tight deadlines set by the REACH legislation says Geert Dancet, Executive Director of the European Chemical Agency.
ECHA is located in the centre of Helsinki, Finland and is responsible of managing the Registration, Evaluation, Authorization and restriction processes for Chemical substances to ensure consistency across the European Union.
REACH-IT is the information system which serves as the main channel between the European Chemical Industry and ECHA.
assignment
HiQ Quality Services team of consultants has been supporting the Quality Assurance of the REACH-IT system. Both were successfully contributing in the first important deadline for pre-registrations set by the EU Legislation on December 1st 2008.
It is one of the most challenging and inter- esting projects I have been involved in. Not only due to the complexity of the system itself, but also because of the extremely tight deadlines to meet in weekly basis. REACH-IT project is on the eyes of the whole EU and media. It is great observing the commitment of ECHA profes- sionals working together as a team and having really long working days even before Christmas.
On the top of that you can really feel the multi- cultural environment, since I work closely with scientific officers from all over Europe, here at ECHA.
I was assigned by ECHA to lead the planning and coordination of all needed tasks to ensure the quality of the REACH-IT system.
Among the activities that I have contributed to, is to support to ECHA’s project management, defect management, regular status reports,
providing training to scientific officers in the art of error management within the quality assur- ance area, QA documents review, follow up and follow through in close detail to the issues that could interfere with the tight deadlines set by the project managers and EU legislation.
My colleague Kalpana Balakrishnan has been supporting all the quality assurance activities assigned to her. Together with a group of scientific officers, Kalpana took care of the quality assurance of the Finance module.
Her contribution to the REACH-IT project has been recognized by all the team members, and especially by the Finance module Workflow Coordinator.
After successfully getting through the first important deadline on December 1st 2008, all the ECHA’s REACH-IT team received a recog- nition letter from the Vice-President of the European Commission Enterprise and Industry, Mr.Gunter Verheugen through their Executive Director.
Fabian Garrido Martinez HiQ Quality Services
Scania background
Scania Fleet Management is a series of telemat- ic services that make it easier for Scania’s cli- ents to maximise the utility of their commercial vehicle fleets. Scania’s web-based distributor portal allows hauliers to view the status of all their trucks at all times, for example load, fuel consumption and position, and to send new driving instructions or text messages to the drivers. The system also helps to speed up and automate the invoicing process, and makes it easy to see the actual costs of each delivery. In
four cases
technical terms the system comprises a number of different computers in the truck that use GPRS and SMS to communicate with a central server park. This uses a web server to manage the web page and enable integration of the cli- ent’s business systems via web services.
assignment
Among other things HiQ has helped Scania to produce strategies and technology for perform- ance tests, in some cases short-term solutions to improve performance quickly but also long- term solutions that use system architecture to eliminate bottlenecks and find strategies for handling the system. A major aim of the project was risk minimisation: establishing what the system can do at present, measured in terms of number of trucks and users, and, in combina- tion with Scania’s sales forecasts, analysing how long the existing environment will be able to cope.
Naturally we wanted to carry out load tests on the actual production system, but this was not possible as it would interfere with the end client’s daily operations. Instead we built up an equivalent parallel test environment similar to the real one, something which proved to be more difficult that we initially thought. There was a lot of chopping and changing before we were finally confident we had an environment we could run with. Translating theory into prac- tice and finding it works is really exciting!
Another of the challenges in the project was working between the development and opera- tional organisations. As I had previously only worked within development organisations, it was great to gain insight into how a production system is to operate on a large scale with redun- dancy and good availability for the end client.
Anders Ancker HiQ Stockholm
PBI-Dansensor background
In the food industry, freshness and durability of the products have always been important.
Setting the best-before date just right ensures optimum freshness for the consumer, while maximizing shelve-time for the retailer.
Since atmospheric oxygen is a key element in the natural degradation of products, food packages have for many years been filled with nitrogen or carbon dioxide.
However, since oxygen permeates through any material, the permeability of the packaging is an important factor in setting the best-before date. Thus a niche has developed for labs measuring the exact permeability of a particu- lar type of packaging. PBI-Dansensor is a world- leading supplier of measurement equipment for this niche.
Because permeability measurements in- volve numerous tests and are very long-running – weeks or months for certain types of contain- ers – PBI-Dansensor saw a need in the market for a PC-based application automating, sup- porting and documenting these activities. Since PC software development is not a core skill for PBI-Dansensor, they went looking for a partner with the right skills, experience and attitude.
assignment
In early spring 2008, PBI-Dansensor contacted HiQ København, asking us to gather require- ments and estimate the size of the project.
In a few weeks, PBI and HiQ had identified the requirements, and HiQ had estimated the project – and in early May, the project contract was signed.
Since even the simplest measurements in- volve controlling dozens of valves and sensors with very tight timing and accuracy constraints, device and workflow management were a key focus. But naturally reliability and an intuitive user interface were also key factors for the suc- cess of the application.
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To support the required quality, cooperation and focus in the project, HiQ and PBI-Dansen- sor agreed to use the agile SCRUM process for the project. The frequent deliveries of working software prescribed by SCRUM allowed test and quality assurance to start very early, allow- ing the final build to move almost directly to field test
As a result, the system was delivered after just 3 months – feature-complete, on time and fully tested and integrated.
After going through rigorous field testing, the system was released to the market at the end of 2008.
Thomas Schaumburg HiQ København
Ascom Wireless Solutions background
Ascom Wireless Solutions is a specialist company that develops customised solutions for wireless communication systems based on DECT, IP-DECT and WLAN. The systems are developed for easy integration in the clients’
existing systems or as standalone systems. The rationale is to provide a faster response in the event of operation-critical incidents. The sys- tems offer communication of speech, messages and alarms.
Ascom Wireless Solutions’ clients include healthcare and elderly care providers, treat- ment of offenders, the manufacturing and process industry, and the retail and hotel sec- tors. HiQ helps Ascom with software develop- ment, testing and verification in several of their projects.
assignment
One of the assignments HiQ has been involved in is the production of next-generation DECT telephones. In addition to standard telephone functions, the phones were to have alarm and position-finding functionality. The prerequi- sites were a solution that works well in safety- critical environments such as hospitals, secure
institutions and certain industries. This meant there were stringent criteria in terms of quality, performance and security. One of the roles of HiQ’s consultants here was to help produce the software for the new handsets. The assign- ment covered everything from the preliminary study and specification of requirements to system testing and certification of the finished solution. Alongside software development, the consultants were also involved in developing a new platform for the telephone, and select- ing operating systems, memory solutions and software processes for development work.
HiQ provided the project with a number of skilled and highly regarded consultants, who made it possible to produce high-quality, high-performance robust telephones within the planned timescale. As a project employee, it was good to be involved in so many of the elements and follow the development through to its fruition. For me, being able to work with different parts of the software – everything from hardware to the design of ring tones and system questions – was an opportunity for personal development. To be involved in and design software processes to facilitate the team of developers’ day-to-day work too was extremely stimulating.
Erik Næslund HiQ Göteborg
Northern Europe’s leading IT and management consultancy
Vision
HiQ shall fulfil the existing needs in the market for a specialist consulting firm that is fast on its feet, offers a high level of technical exper- tise and takes a comprehensive view of client problems and solutions. HiQ shall break new ground in high technology and shall be an entrepreneurial company that lives on, with and for rapid change. HiQ was established in the mid-1990s by entrepreneurs. Our vision was to
“create the company we always wanted to work for, and that clients want to work with”. These words continue to guide our ongoing work to develop the company. Our vision is to be northern Europe’s leading IT and management consultancy.
Business concept
As a specialist consultancy company with expert skills in communications and software development, to supply the expertise that our clients lack themselves. Working in close coop- eration with our clients in sectors where IT and technology are crucial, we help them to improve their competitiveness and profitability.
Goals
quality goals
Client quality. We want to be perceived as the world’s best consultancy company for our cli- ents. Our goal is therefore for each assignment to be carried out in a business-like manner to a high level of quality. We conduct ongoing client surveys to ensure that we are keeping our promises, and each year we draw up a plan for becoming an even sharper provider for our clients.
When the 2008 survey asked our clients whether they were satisfied with HiQ, whether they felt secure with HiQ and whether they would recommend HiQ, they gave us an aver- age score of 4.46 on a scale of 1 to 5. Good but not good enough, so our quality work goes on.
HiQ has been elected “Sweden’s best IT- consultancy 2009” in a survey where Veckans Affärer ask more than 600 consultant buyers their view.
Employee quality. The working environment at HiQ exudes a business-like approach and a
yearning among employees to develop software each day that will define the society waiting around the next corner. We want all members of staff to thrive and develop. This is why all employees undergo a training programme that covers, among other things, HiQ’s values and our approach to work, and further training in the form of various technical courses.
Universum Communications’ survey of Young Professionals, in which employees rank their own employers, placed us at no.2 in Sweden.
Shareholder quality. We provide high-quality information to our shareholders by giving a correct, reliable and fair picture of the Group in order to create the prerequisites for a valuation reflecting HiQ’s operations.
financial goals
Our long-term financial goals are to achieve growth of 30% and an operating margin of 15%.
Since the company was established in 1995, on average we have achieved growth of 29.3%
and an operating margin of 15.9%. In 2008 we achieved growth of 21% and an operating margin of 16.4%. Our financial goals should not be viewed as a forecast.
dividend goal
The dividend level shall be tailored to the Group’s capital requirements, which mainly take the form of investments and an increase in working capital, and the shareholders’ require- ment for a good dividend yield. The goal is for the long-term dividend level to be approximate- ly. 50% of consolidated profit after tax for the year. For 2008 the Board of Directors proposes a total dividend of SEK 72 million (SEK 1.40 / share) by means of a share split and compul- sory redemption procedure.
Our clients gave us a score of 4.46 on a scale of 1 to 5.
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Have you seen my car?
Have you seen my car? Neither have I. It disappeared a few weeks ago. Said it wan- ted to go for a run in the country to give the engine a workout after several months’
idling in city traffic. My car is like every other car these days. It was different when I used to do all the driving myself; when I looked in the rear mirror to see the cars behind, got as close to the car in front as I wanted to, and jammed on the brakes wit- hout assistance. I even made sure I kept within the white lines on the roadway and, what’s more, could even allow myself the odd burst of speed when I was in the mood. But
now it’s all changed, and the car deci- des for itself! It has eyes that see in all directions, doesn’t get closer to the car in front than is sensible, and jams on the brakes just in time without locking the wheels. It stays on the roadway all by itself, and leaving skid marks on the asphalt is a thing of the past. Today’s cars think for themselves.
And just look how well they’re doing.
Thanks to HiQ and clients.
B.
Nine strategic features
Quality, profitability and growth
As our name suggests, high quality is the foun- dation stone on which HiQ is built. If we deliver quality, we will have satisfied clients, which makes us profitable, which in turn gives us the opportunity to grow. We prioritise quality, prof- itability and growth, in that order. A strategy that has proved to be exactly right for us as, from the start, we have achieved an average operating margin of 15.9% and average growth of 29.3%.
Nordic heart
HiQ is essentially a Nordic consultancy that works with companies in the Nordic region, where we are a well-established consulting company. But we also help international clients setting up in the Nordic region and accompany our Nordic clients globally. We are increasing the proportion of business outside the Nordic region, both with non-Nordic companies and Nordic clients with assignments outside the region.
Purely a consulting company
We are purely a consulting company and act as independent advisers with the client’s best interests in mind. We do not develop any propri- etary products that compete with those of our clients, but devote 100% of our expertise to our clients, without any commercial links to suppli- ers, products or technology.
High level of expertise within communications and software development
We are a specialist consulting company with a high level of expertise within communications and software development. We have a strong position within telecoms, where we work with suppliers, operators and users. Our software development results in development of new products and systems. Our expertise in simula- tion derives from advanced training simulators for the JAS 39 Gripen aircraft.
Organic growth and acquisitions
HiQ grows organically in combination with stra- tegic acquisitions. During 2008 we increased our headcount by 55, distributed across all our regions. We acquired Ace Simulation in Linköping with 30 employees and TSG Test Solutions (HiQ Quality Services) in Finland with 70 employees.
Technology and business
At HiQ we are good at technology and how technology can be used for profitable business.
And because we know how our clients do busi- ness, we can provide the expertise as to which technology can improve their profitability.
Knowledge transfer between sectors
We actively transfer our knowledge to clients in different sectors, enabling our clients to benefit from new expertise within both technology and business from totally different sectors from their own. The need for communication is becoming ever greater in an ever-increasing number of sectors, and at the same time our ex- pertise in areas such as simulation and interac- tive gaming is being passed on to new sectors.
Experienced and skilled employees
A high level of technical expertise and broad business know-how are typical of HiQ. Our em- ployees have an average of nine years’ experi- ence in technical and business development.
93% are graduates, and 72% have a Master’s degree in engineering.
Distinct values
HiQ is a values-driven company. We believe that clearly communicated values such as responsa- bility, results, simplicity and enjoyment result in good quality work being performed and thus in satisfied clients. Distinct values can enable better development of our employees and the company’s structural capital. Our values are a decisive competitive advantage.
HiQ’s main strategy is to prioritise quality, which generates profitability, which in turn generates growth.
quality profitability growth
