Isn’t there always someone behind the bright shining star? Someone who provides support, contributes expertise or perhaps is simply vital for the star shining so brightly? Don’t you get that impression? For us at HiQ, it is the essence of our work. We help our clients as they try to take the latest high technology one step further. And thereby improve their competitiveness and profitability.
Communication
– since the beginning of time.
Page 6.
2007 was hiq’s best year ever. hiq’s sales were higher, the
group grew by taking on more employees and made a greater profit than in any previous year. in figures: sales were sek 973.7 million, grew with 248 new employees – taking the total headcount to over 1,000 – and pro- fit was sek 182.3 million. the proposed distribution of sek 66 million is in line with our long-term dividend policy. we are proud of what we have achieved together with our clients, and we want more. we are always looking ahead to the future.
we have communicated since the beginning of time, and it is growing in volume and importance every year. i am looking forward to a 2008 full of exciting technological development, commitment and our continuing to work attentively and closely with our clients, says lars stugemo, presi- dent and ceo of hiq international ab.
HiQ in eight lines.
Page 9 and 85.
HiQ is a specialist consultancy company with expertise in communi- cations, software development and simulation. We help our clients to improve their competitiveness by supplying the specialist skills that they lack in-house.
The company is organised in nine subsidiaries with more than 1,000 employees. HiQ is located at eleven offices in four countries – Sweden, Denmark, Finland and Russia. In 2007 net sales were SEK 973.7 million and with an operating profit of SEK 182.3 million.
Record figures.
Pages 32, 39 and 44.
In 2007 we set a number of new records and we are able to report our highest sales and profit to date. Sales increased by 21% to SEK 973.7 (801.4) million. Profit increased to SEK 182.3 (154.9) million, representing an operating margin of 18.7 (19.3) percent. We increased our workforce by 248 people, taking our headcount to more than 1,000.
Top 10 clients 59%
HiQ’s top 10 clients account for 59% of sales.
Sales to top 10 clients.
Page 15.
Sales increased to SEK 973.7 million, representing growth of 21%.
The operating margin was 18.7%.
Sales by business sector.
Page 15.
Telecoms 50%
Security & defence 9%
Finance &
insurance 7%
Industry 11%
Gaming &
entertainment 9%
Automotive 9%
Public sector 5%
How does HiQ affect your life?
Page 10.
Communication between people, both privately and in their professional lives, is increasing and the technology that makes communication possible is beco- ming an ever greater part of our lives.
There are cars that can see in the dark and communicate with the world around them, phones with extra everything, ticketless systems for public transport, online gaming on the Internet, the endless shopping on the Web.
Every year new possibilities are created for a smoother, more fun society in which new ways of communicating and new services appear and seduce us.
It is an exciting new world with HiQ and our clients at the centre. We develop many of these products and services that you use every day.
OPERATING MARGIN
%
19.3 18.7
03 04 05 06 07 25
20 15 10 5 0
20.6
13.9 8.3 NET SALES
1050 900 750 600 450 300 150
801.4 973.7 SEK
million
03 04 05 06 07 720.5 512.9 403.0
hiq in brief hiq in brief
Our clients come from many different business sectors.
Contents
HiQ in brief . . . 2
CEO – Lars Stugemo . . . 6
Communications, software development and simulation . . . . 9
HiQ at the heart of society . . . 10
Vision, business concept and goals . . . 17
Strategies . . . . . . . 19
Competitors . . . 21
Employees . . . . . . . . . . 22
Structural capital . . . . . . . . . . 29
Five-year review . . . . . . 32
Risk and risk management . . . . . . . 34
The HiQ share . . . 36
Directors’ report . . . . . 39
Group income statement and balance sheet . . . 44
Changes in shareholders’ equity for the Group . . . 46
Group cash flow statement . . . . 47
Parent Company income statement and balance sheet . . . . 48
Changes in shareholders’ equity for the Parent Company . . . 50
Parent Company cash flow statement . . . 51
Notes . . . . . . 52
Auditors’ report . . . 80
Corporate governance . . . 81
Management . . . 82
Board of Directors . . . 84
Organisation . . . . 85
Definitions of key ratios . . . 86
History . . . 87
Addresses . . . 88
Annual General Meeting
The Annual General Meeting will take place at 10 a.m. on 30 April 2008 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 30 April 2008.
The interim report for the period January-March will be presented on 29 April 2008.
The interim report for the period January-June will be presented on 14 August 2008.
The interim report for the period January-September will be presented on 20 October 2008.
The year-end release for 2008 will be presented on 3 February 2009.
For more information, please contact: Anna Jennehov, Head of Corporate Communications, tel. +46 (0)8-588 900 49,
+46 (0)704-200 049, anna.jennehov@hiq.se Fredrik Malm, Head of Investor Relations, tel. +46 (0)8-588 900 34, +46 (0)704-200 017,
fredrik.malm@hiq.se 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 hun- ting 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.
Continued close cooperation with our clients, the confidence of new clients and the success- ful recruitment of many excellent employees are some of the factors that made 2007 so good. We are proud of what we have achieved together with our clients, and we want more.
We are always looking ahead to the future.
HiQ has a broad client base and is a major player within our chosen specialist areas, and we enjoy a good reputation. Our brand is well- known in the job market and among clients.
Rather than putting all our eggs in one basket, we operate in a number of geographical mar- kets and in more business sectors than ever.
We are also larger and more profitable than in any previous year. HiQ is a fantastic workplace that offers challenging assignments and stimu- lating colleagues.
In 2008, with more than 1,000 employees, we shall continue to grow, develop and make sure that HiQ is a well-managed company.
Because well-managed companies always do better, no matter what the market climate. Just as a super-fit sportsman copes with varying conditions better than one who has not trained so hard.
When I and my colleagues started HiQ in 1995, we decided that HiQ would be a consul- ting firm that lives on, with and for technolo- gical development. And we still feel that way.
Communication remains one of the oldest phenomena in the world, and it is growing in volume and importance every year. In 2008 HiQ once again intends to be setting the tone, as a company at the forefront of technological development.
We are extremely fit and I am looking for- ward to a 2008 full of exciting technological development, commitment and our continuing to work attentively and closely with our clients.
Characteristics of 2007
There was strong demand for HiQ’s services in 2007 and we signed many important contracts and framework agreements with leading play- ers. We work in long-term relationships with major national and international companies such as Nokia, Saab, SEB, Tele2, Volvo, GTECH, FMV, OMX, Ericsson, Ascom, GVA Finland and Heidelberger Druckmaschinen. HiQ’s top ten clients account for around 59% of sales and come from seven different business sectors.
The development of the Group in 2007 was very strong. In Skåne and Stockholm com- munication is big, and the financial sector has also developed positively in Stockholm. In Gothenburg we are a significant player with strong relationships with the major companies in the region. In Finland – where we are par- ticularly strong in the development of online gaming on the Internet – profitability is very good, and we are also good at communications in Denmark.
In 2007 we expanded our workforce by 248 people – a terrific bunch of men and women with differing backgrounds and experience who will together build further on the mix of curio- sity and long experience that characterises HiQ.
2007 also saw the birth of two new HiQ companies. We acquired MobilEyes in Stockholm, which specialises in development on the Symbian and Windows Mobile platforms for mobile phones. MobilEyes is an important part of HiQ and is already an established HiQ company. The acquisition also brought us an office in Moscow. In addition, we started opera- ting in Linköping, where in early 2008 we also acquired ACE Simulation with its 30 employees.
HiQ now has eleven offices in four countries.
HiQ was named ”IT Consultant of the Year 2007” in the magazine Veckans Affärer’s annual
Communication – since the beginning of time
ceo – lars stugemo ceo – lars stugemo
ranking of consulting firms. This year we are again at the top of the same survey, on the same points as the No. 1. In a survey conducted by Affärsvärlden we were named the best com- pany on IR matters among companies on the MidCap list – for the second year in succession.
HiQ was also ranked as one of the ten best pla- ces to work in the IT-sector in various workplace surveys carried out in Sweden, Finland and Denmark.
Predictions for 2008
In macroeconomic terms 2008 may look a little more uncertain than 2007, but nonetheless we have faith in the long-term growth of all the sectors and all the markets in which we ope- rate – the need for communication is constantly increasing.
The desire for new products and services continues to increase in today’s communication society and one of many trends that demon- strate this is that we are using the Internet wit- hout realising it, because it has been integrated into services that we use. We don’t need to click an icon for our computer’s Web browser as we did previously – it happens automatically. It’s in your IPod when you download music and images, in your TV when you use IPTV or in your GPS when you are out and about. And many more fantastic and imaginative services are lined up for the future. You can count on it.
More examples of how life might be in 2008:
You are woken in the morning by your favourite song on your mobile. As you eat breakfast you leaf through the newspaper, watch TV via your IPTV service and buy more HiQ shares on the Internet. The refuse truck trundles along and collects your rubbish. You drive off in your car, dropping off your kids who continue by public transport. Your GPS takes you to the right address for your meeting with colleagues. You have plenty of time and stop off at the grocery store to buy a coffee and a pastry. As you sip your coffee, you text the tax office to confirm that you approve your tax return. You check your email on your mobile and answer the most urgent messages.
It’s still only 9 o’clock, and we and our clients have been involved in developing all the things that you have been able to do during the first two hours of your day: your mobile phone packed full of functions and services; logistics systems for newspaper printing; IPTV solutions for your TV, computer or mobile; systems for share dealing; logistics systems for refuse col- lection; infotainment systems and active safety
systems in cars; systems for grocery shopping;
mobile-based systems for ticketless travel by public transport; GPS services; tax return servi- ces for the tax authority. The list is endless.
HiQ is at the heart of society and on behalf of its clients develops many of these increa- singly accessible products and services that we use to communicate with each other, with companies, between companies and with aut- horities.
Let’s talk about communication. What is the hottest youth trend in 2008? The youth barome- ter – Cosmos Communications’ survey of 15- to 24-year-olds – has the answer. Is it new fashions in clothes? No, that came third. Is it environ- mental awareness? No, remarkably enough it isn’t – that came second. Mobile phones and everything that can be put on them are the hottest youth trend. New functions and appli- cations are what they want. They always have their mobiles with them and want to be able to use them for as much as possible. TV on a mobile is highlighted by many as being of great interest. Camera, music, games, email, blogs, msn and surfing are other items topping the list among young users.
That is how the world is today. HiQ’s main strategy is to be a leading specialised IT consul- tancy. With our heart in the Nordic region, HiQ provides services within the areas of communi- cations, software development and simulation technology to clients who operate in increa- singly globalised competition. In principle, eve- rything we do is used for some form of commu- nication that is used by millions of people every day. HiQ is at the heart of this mix and intends to continue recruiting the best employees and maintaining the high quality of our work with our clients.
HiQ gives priority to quality, profits and growth in that order. We will continue to grow organically and supplement this with strategic acquisitions that take us closer to our clients or enable us to expand into new geographical markets. And we will continue to build HiQ as an interesting workplace for people who want to be happy at work, to feel stimulated and to develop professionally.
Our ambitions are humble. We shall be the world’s best consulting firm for our clients, our employees and our shareholders.
Lars Stugemo
President and CEO of HiQ International AB, 26 March 2008.
development, commitment and our continuing to work attentively and closely with our clients.
HiQ was named ”IT Consultant of the Year 2007” in the magazine Veckans Affärer’s annual 2007 was HiQ’s best year ever. HiQ’s sales were higher, the Group grew by
taking on more employees and made a greater profit than in any previous year. In figures: sales were SEK 973.7 million, the workforce increased by 248 new employees – taking the total headcount to over 1,000 – and profit was SEK 182.3 million. The proposed distribution of SEK 66 million is in line with our long-term dividend policy.
Our clients cannot do everything Even though we quickly get used to it and don’t always think about it, we are all using increasingly advanced technology and more sophisticated services in our everyday lives compared with just a few years ago.
This trend of accelerating technology is making the development of new products and services increasingly complex. Consequently, it is becoming virtually impossible for our clients to maintain in-house all the expertise and human resources needed to develop inno- vations quickly and to compete successfully on the market. Some companies are simply choosing to outsource all research and deve- lopment, while others do a lot of development themselves but call in outside expertise when necessary.
One way of increasing competitiveness is to use a niche consulting firm such as HiQ. We have specialised in what we know best and with our long experience, first-class expertise and strong client references we work on the latest technology for our clients.
Specialists in communications, software development and simulation HiQ specialises in communications, soft- ware development and simulation. With our in-house expertise, we help our clients to develop systems, products and services in the areas of telecoms, new mobile phones, various kinds of simulators such as the flight training simulator for the Jas 39 Gripen, as well as gaming and platforms for online gaming on the Internet, IT solutions for vehicles and a variety of business-critical systems such as systems for electronic share trading.
Pure consultancy
HiQ is a pure consultancy company that acts as an independent adviser, always with the best interests of our clients at heart. We do not develop our own products that compete with those of our clients, but instead allow our clients to benefit 100% from our skills.
HiQ behind technological development
communications, software development and simulation
HiQ is a consultancy company specialising in communications, software development and simulation.
Communication
Software development
Simulation
Pocket-format communications centres that we still call mobile phones, intelligent systems that help cars to avoid accidents and secure systems for share trading. Our clients are high-tech companies that are driving technological development forward in their efforts to shine among the competition. In order to be able to help them in the best way possible, we have chosen to be specialists rather than generalists – we have decided to specialise in what we are really good at. That’s how we can stand behind our clients and offer them the particular expertise they need in the areas of communications, software development and simulation.
DID EINSTEIN INvENT THE THEORy OF RELATIvITy ALL ON HIS OWN, OR WAS THERE SOMEONE ELSE BEHIND IT?
Correspondence between Einstein and his then wife, Mileva Maric, shows that Maric was just as involved in the work as he was. The equa- tion e=mc2 took the world into the nuclear age and won Einstein a Nobel Prize. But in secret, he gave all the prize money to his wife.
Do the world’s major mobile phone manufacturers create new phones all on their own, or is there someone else behind them? Undoubtedly there is someone behind the scenes. For many years we at HiQ have been highly involved in the development of new models. Packed full of the hottest technology, our clients are launching innovations one after another. Out of habit we still call them mobile phones, but these devices have now created a completely new communication society.
How does HiQ affect your life?
hiq at the heart of society hiq at the heart of society
Communication between people, both privately and in their professional lives, is increasing and the technology that makes communication possible is becoming an ever greater part of our lives.
There are cars that can see in the dark and communicate with the world around them, phones with extra everything, ticketless systems for public transport, online gaming on the Internet, the endless shopping on the Web, logistic systems for the printing industry, IPTv solu- tions, systems for stock trading, logistic systems for managing refuse collection, gps services, income-tax services for the Swedish Tax Authority. The list can be endless.
Every year new possibilities are created for a smoother, more fun society in which new ways of communicating and new services appear and seduce us.
Just think how we keep in contact with our friends now compared with a few years ago. And what about our children and teenagers? Niche and broad communities are coming into being on the Web, where people meet each other daily. SMS, MMS, music and films are distributed via phone or the Web like dandelion seeds in the wind. Millions of messages are sent and received every day, just in a small area like the Nordic region.
It is fascinating to see ten-year-olds keeping in touch with friends across the country on a daily basis using the communications centre in their pockets. At the same time, Swedish pensio- ners are the keenest Internet users in Europe.
It is an exciting new world with HiQ and our clients at the centre. We develop many of these products and services that you use every day. Either we assist our clients by running the entire project, or we offer our specialist expertise in certain areas of large projects.
HiQ is in your mobile
It has come from being an only-just portable telephone for a few well-off businessmen to an essential mini communications centre that everyone has to have. Once just a phone for talking to people, it is now a powerful multi- tasking tool that makes life easier and more fun. We are talking about a journey that has created a whole new communication society.
HiQ is also on this journey and works with the major brands, helping our clients to develop and test new mobile phones as well as mobile platforms and services. We also work on systems and support systems for most of the mobile telephony systems, such as develo- ping various different kinds of software that is used in 3G base stations.
Various forecasts of the future of mobile technology suggest that IPTV will really work and become something on everyone’s mobiles, that GPS will become standard and that the range of services available on your mobile will generally increase substantially.
IPTv on your Tv, computer and mobile IPTV, in other words TV broadcasts via broad- band or mobile networks, is one of the new services that are growing at a record rate. In Europe the number of subscribers doubled several times in 2007 to just over 5 million.
The issue of the moment is upgradability of IPTV and being able to connect up your mobile phone, fixed line, TV, computer and stereo in order to be able to offer the household new services. Leading telecoms operators around the world are working with home electronics suppliers to develop a global standard for IPTV. Integration with home electronics is a crucial factor.
HiQ is developing IPTV jointly with a leading telecoms operator and service providers. We are developing TV on demand, which means you can forget the TV schedules and watch a programme when you want to. We are also working on developing TV for mobile phones, which means you can watch TV where you want to. Alongside this we are developing mobile TV to be broadcast via separate mobile networks.
Will your next car have artificial intelligence?
The computing capacity of our cars exceeded that of the first moon landing craft a long time ago. Many new models that are launched come with astonishing high-tech innovations. And we are not just talking about the most exclu- sive prestige cars any more.
At HiQ we work with a number of different global vehicle manufacturers on the deve- lopment of infotainment systems and active safety systems. Infotainment is about infor- mation and entertainment in the car, such as communication with the outside world, sound and image equipment, entertainment for the children and GPS solutions for navigation.
Active safety is a collective term for technology and systems designed to prevent accidents. Using intelligent systems, the car’s systems assess accident risks and try to avoid accidents on the road. Examples of technology currently on the market include night vision cameras, cameras that help the driver to keep an eye on the ’blind spot’, radars to warn of obstacles in front of the car and advanced anti- skid systems.
Navigation, night vision and radar that warns of obstacles in front of the vehicle. The computing capacity of our cars ex- ceeded that of the first moon landing craft a long time ago.
It is highly likely that HiQ helped to develop your new mobile.
Want to bet?
We all know someone who plays poker or sports games or who bets on the Internet.
Maybe you do yourself?
People’s growing access to good Internet connections, the speed of the game and the increasing range of games are three driving factors that have made gaming and betting on the Internet a strong growth market for a number of years. The market is predicted to grow by around 20% per year until 2010.
HiQ is a leading player in the world in the development and implementation of platforms for gaming and betting, as well as the actual games. We also develop advanced solutions that provide security, accessibility and high performance. Our clients include the world’s largest corporations in gaming and lotteries, famous Nordic brands in Internet-based gaming and companies in the entertainment industry.
Bull or bear market makes no difference No doubt you have some shares or a unit trust and you have a lot of contact with your bank. In which case, you will come into contact with the stock market and some of our largest banks’
services, and thus with the work that we carry out at HiQ.
We are in a strong position in the Nordic region in the development of financial systems, both for banks and for securities trading.
Among other things, we have worked on as- signments for OMX for more than ten years.
These involve everything from requirements analysis to management of large projects.
For example, we are involved in the develop- ment and maintenance of OMX’s stock market system for electronic trading, i.e. automatic matching of buy and sell orders.
In 2007 we helped OMX to develop and administer a new system for derivatives trading that is now used on one of the major stock exchanges in the US. The banking and finance world is currently implementing many changes because of new requirements set within the EU to promote competition and transparency.
The systems that exist today are generally not ready to cope with these requirements, with the result that they have to be updated or quite simply replaced.
HiQ develops stock market systems used for electronic tra- ding, i.e. automated matching of buy and sell orders.
HiQ helps the world’s largest corporations in the gaming sector and lotteries to develop platforms for Internet-based gaming.
Telenor Sverige AB background
Telenor is one of the world’s largest mobile operators and a full service supplier of commu- nications services. In Sweden, Telenor offers mobile telephony, fixed telephony and data services. Our assignment at Telenor means that we work as project manager, test manager, developer and tester.
assignment
One of our projects is the subscription sales system Online. This system is available in two versions of applications, so that it can be adapted to the flexible mobile market. Online is used by sales staff not only in Telenor’s own store chain, but also by other retail partners of Telenor across Sweden.
In Online the sales assistant can register a complete subscription package of services and associated products. The system has been built with the focus on simplicity, which means that the sales assistant cannot make a mistake when recording a subscription package. Which types of subscription, services and products can be selected is decided by underlying preset transaction rules.
HiQ has built and developed Online for Telenor since 1998.
At HiQ we use the SCRUM project method, which is what is known as an agile develop- ment method. This means that the way we work is requirements- and test-oriented. Every- one must be able to carry out all the tasks in order that we can achieve the object together.
We have a strong team spirit and deliver qua- lity on time – all in order to make sure that the customer’s system is at the forefront.
Jennie Svensson HiQ Karlskrona
Innovative financial solutions background The stockmarket is interesting for more and more people. All over the world we follow the public companies’ development and more and more people is actively trading securities
over the Internet. Our client offer innovative financial Internet products, suitable for beginners as well as experienced stock traders.
One service allows gaming operators’ end customers to gamble on financial information, such as the possibility of a particular index or share reaching a certain value on a particular date.
assignment
HiQ had helped the client in the past with producing a prototype for displaying user interfaces and gaming ideas, and HiQ was also commissioned to produce the real gaming platform. The platform was developed by HiQ and was taken into use in 2007.
FOUR CASES
hiq at the heart of society hiq at the heart of society
over the Internet. Our client offer innovative
The client’s finished system includes an administration tool and a gaming client, that latter being highly customisable so that it can be adapted to each gaming operator’s graphical profile. The administration tool that gives full control over the system is also available in a simpler monitoring version.
Thanks to virtualisation, the system can easily be scaled up for increased capacity, and the modular system design means that the client can add new functions and new types of game as the market changes.
The platform was developed using software and a framework based on open source code in order to keep down licence costs and reduce dependence on individual software suppliers.
Despite technically demanding challenges such as fraud protection, huge capacity and extensive integration with other systems, the project was completed on time and under budget.
Its success is partly due to factors such as test-driven development, SCRUM as the project method, the client’s participation in early tests, HiQ’s experience from other clients in the financial sector, and not least the team spirit among the development group.
Mikael Sjöberg HiQ Stockholm
ACE Interactive background
ACE Interactive is a leading developer of online server-based gaming solutions aimed at gaming operators with great demands regarding regulatory compliance, operator control, and player experience. ACE Interactive strive to be the long-term partner supporting lotteries and casinos in all product areas, such
as system, games, terminals, and services now and in the future.
The platform allows implementations of games from any game provider as well as new advanced content capabilities. This together with centralized network management, including configuration of games, dramatically improves the content possibilities of the gaming terminals, and thus, leverages the operator to gain maximum player experience.
ACE is currently in the process of certifying the platform for the American market; the project for this is called Class III. The next phase of the certification process is a trial in a major North American Casino in 2008.
assignment
HiQ has been involved in several parts of the new Class III project. For example we created an automatic build system that makes it possible to build the complete system by pressing one button. This tool is used internally to have a continuous build, and it is used externally by the certification institute to make sure that they have full control of the complete process from source code to binary and signed deliverables.
One of the core components in the gaming terminals is the operating system. The challenge is to configure a lean and stable platform but without compromising with the real-time properties and without affecting the graphical performance. To accomplish this, the platform in the terminals is based on Microsoft Windows XP Embedded. HiQ has helped to develop this platform.
Security is another very important aspect that you need to consider when developing large complex transaction systems. Apart from the communication between the terminals and the server platform, which is encrypted in a VPN-tunnel, security is the functionality of having an easy manageable system management system. HiQ has together with ACE developed a back office system that will help the administrator to monitor and administrate all the terminals, databases and servers in the system in order to minimize the down time as of a terminal and thereby the players experience.
Eva Fransson HiQ Stockholm
Global automotive manufacturer background
The traditional approach within the automotive industry has been to try to protect road-users by means of various safety systems developed in order to lessen the effects of collisions, e.g.
airbags, side impact protection and crumple zones.
One area that is relatively new compared with the automotive industry itself is active safety. Active safety goes one step further, by developing systems that help the driver to avoid dangerous traffic situations entirely, rather than simply trying to lessen the effects of a collision. Sweden develops and manufactures premium cars and the country is at the forefront of developments, with the environment, quality and safety being keywords.
assignment
One of HiQ’s clients within this industry develops advanced sensor systems that recognize the car’s surroundings. The system then uses complex algorithms to analyse the situation. If the situation is dangerous, the driver is warned and the system also makes it easier for the driver to deal with the situation,
for example by preparing the car’s braking system for sudden braking.
HiQ’s consultants were responsible for the software in the system and acted as the link between the car manufacturer and the supplier of the software. The complex systems that a modern car contains means that a lot of work is required if all the hardware and software is to work together correctly. Since active safety systems are literally vital, a lot of effort has gone into ensuring that all the software is of very high quality. This is done through structured work that involves a great deal of planning, implementation and follow-up of both software deliveries and
documentation, coordination and testing. HiQ’s many years’ experience in this area has enabled it to provide the expertise required to create a globally leading system of this type.
Daniel Lindgren HiQ Göteborg
Top 10 clients 59% (60%)
Our top 10 clients accounted for 59% of sales. Our clients come from many different business sectors.
Sales to top 10 clients Sales by business sector
Telecoms 50% (48%)
Security & defence 9% (8%)
Finance &
insurance 7% (5%) Industry 11% (11%)
Gaming &
entertainment 9% (12%) Automotive 9%
(10%)
Public sector 5%
(6%)
hiq at the heart of society hiq at the heart of society
ACE Interactive
planning, implementation and follow-up of
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 expertise 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-1990’s by entrepreneurs. Our vision was ”to create the kind of company we always wanted to work for, and that clients want to work with”. Those words still guide us as we continue to develop the company.
Business concept
As a specialist consultancy company with expert skills in communications, software development and simulation, supply the expertise that our clients lack. In close coope- ration with our clients in high-tech sectors we help them to improve their competitiveness and profitability.
Goals Quality goals
Client quality. At HiQ we want each client to be a good reference. Therefore our goal is that every assignment for a client shall be perfor- med in a businesslike manner and with high quality. We continually carry out client surveys to check that we are delivering what we promise, and each year we draw up a plan for making HiQ an even better, sharper supplier to its clients. Our 2007 client survey shows that we are achieving the same high standards as in 2006 in the three most important areas:
satisfied with HiQ, secure with HiQ and would recommend HiQ. The average mark was 4.53 on a scale of 1 to 5. HiQ was elected ”Swedens best IT-consultancy 2007” by the magazine Veckans Affärer’s yearly consultant ranking.
This year we are still in the top in this survey, at the same score as number one.
Staff quality. In 2007 HiQ Denmark was ranked the fifth best IT workplace in a survey car- ried out by Great Place To Work. We were also voted one of Sweden’s ten most attractive employers within computing/IT in Universum Communications’ annual Young Professionals survey. The working environment at HiQ is businesslike and is characterised by a yearning among our employees to load up their brains with hot new high technology every day. We consider it highly important that our staff thrive and develop. All employees complete a
training programme that includes HiQ’s values, our approach to work and further training in the form of various technical courses.
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 valua- tion reflecting HiQ’s operations.
In 2007 we were named the best company on IR matters among companies on the Mid- Cap list for the second year in succession in a survey conducted by Affärsvärlden.
Financial goals
Our long-term financial goals are to achieve growth of 30% and an operating margin of 15%. Since HiQ was established in 1995 our average growth rate has been 30% and our operating margin 15.8%. In 2007 we achieved growth of 21% and an operating margin of 18.7%. Our financial goals should not be considered as a forecast.
Dividend goal
HiQ’s dividend is adjusted to the company’s capital requirements, which mainly take the form of investments and an increase in wor- king capital. The shareholders’ requirements of a healthy yield are also taken into account.
The company’s goal is to maintain a long-term dividend level of around 50% of HiQ’s profit after tax. For 2007 the Board proposes that no dividend should be paid. It is also proposed a share split 2:1 combined with a compulsory redemption procedure. The procedure will im- ply that each share will split into one ordinary share and one redemption share. The redemp- tion share will then be redeemed for SEK 1.30 per share, representing 50% of profit after tax.
vision, business concept and goals
Our 2007 client survey shows that we are achieving the same high standards as in 2006 in the three most important areas:
satisfied with HiQ, secure with HiQ and would recommend HiQ. The average mark was 4.53 on a scale of 1 to 5.
We help our clients to improve their competitiveness
5 4 3 1 0
4.53 4.53
2006 2007 1-5
Paul ElVstrøm is a lEGEn- dary comPEtition sailor Who Won four succEssiVE olymPic Gold mEdals and 13 World chamPionshiP titlEs. But hoW Would hE haVE Got on Without thE hElP of his nEiGhBour?
Born by the sea and with a father who was a naval cap- tain, he had a keen interest in sailing even as a child. his father died young, however, and his mother could not afford to buy him a boat of his own. But when Paul was thirteen the man living at the house next door bought a competition sailing dinghy and wanted Paul to teach him how to sail it. after a while, Paul realised that his neigh- bour was not particularly inte- rested in learning to sail. his intention was that Paul him- self should have more oppor- tunity to train on his own boat.
this was the boat with which Paul began his competition sailing career in earnest.
Before the pilots that are to fly the Jas fighter aircraft get to sit in a real plane, they train in an advanced simulator. With the outside world projected on the inside of a globe, the pilot wears a G-suit and helmet in a faithful reproduction of the Jas’s cockpit, complete with canopy and everything else.
the swedish defence materiel administration (fmV) deve- loped the simulator, but not without assistance. hiQ has worked on developing and refining training simulators for the Jas 39 Gripen for more than ten years.
Quality, profitability and growth As our name suggests, high quality is the foundation on which we have built HiQ. If we deliver quality we will have satisfied clients, which makes us profitable, which in turn al- lows us to grow. We prioritise quality, profits and growth, in that order. It is a strategy that has proved to be exactly right for us, since we have had an average operating margin of 15.8% and average growth of 30% since HiQ was established.
the nordic region is our home market HiQ is essentially a Nordic consultancy com- pany that works with companies in the Nordic region, where we are a well-established con- sulting firm. We also help international clients to become established here and accompany our Nordic clients out globally. The share of our business outside the Nordic region is increa- sing, both from foreign clients and from Nordic clients with assignments abroad.
Pure consultancy
HiQ is a pure consultancy company that acts as an independent adviser, always with the best interests of our clients at heart. We do not develop our own products that compete with those of our clients, but instead allow our clients to benefit 100% from our skills. And we do so without any commercial tie-up with suppliers, products or technologies.
Expert skills in communications, software development and simulation
We are a specialist consultancy company with expert skills in communications, software de- velopment and simulation. We enjoy a strong position in telecoms, where we work with suppliers, operators and users. Our software development results in the development of new products and systems. Our expertise in simulation has been built up through work on advanced flight training simulators for the JAS 39 Gripen fighter aircraft.
organic growth and acquisitions
HiQ grows organically in combination with strategic acquisitions. In 2007 we increased our work force with a total of 248 people, spread across all our regions. In 2007 we acquired MobilEyes. We also established a new office in Linköping, where in early 2008 we then acqui- red ACE Simulation with its 30 employees.
technology and business
At HiQ, we have technological expertise and understand how technology can be used for profitable business. And since we understand how our clients do business, we can help them choose the technology that provides the best return of investment.
Knowledge transfer between sectors We actively transfer our knowledge to clients in different sectors, enabling our clients to benefit from technical and business expertise drawn from fields far from their own. The need for communication is becoming ever greater in ever more sectors, and at the same time our expertise in areas such as simulation and interactive gaming is being passed on to new sectors.
Experienced and skilled employees
A high level of technical proficiency combined with extensive business expertise is typical of HiQ. On average, our employees have 9 years of experience in technical and business deve- lopment. 93% have a university degree and 75% hold an M.Sc. engineering degree.
distinct values
HiQ is a value-driven company. We believe that clearly conveyed values such as a businesslike approach, entrepreneurial spirit, commitment and knowledge result in good quality work being performed and thus in satisfied clients.
Clear values can help our employees and the company’s structural capital to develop in a better way.
strategies
hiQ’s plan
HiQ’s main strategy is based on prioritising quality, which results in profitability, which in turn results in growth.
hoW Good WErE sWEdish BiathlEtEs fiftEEn yEars aGo?
then magdalena forsberg came along and took olympic medals and won the Biathlon World cup six years in a row. she was followed by anna-carin olofsson, who took an olympic gold. Who is behind the magical change that occurred fifteen years ago? the answer is the now legendary biathlon trainer Wolfgang Pichler.
not even one of the world’s largest corporations in gaming and lotteries, with sales of Eur 1.7 billion, develops internet gaming and lotteries on its own. hiQ is a leading player in the nordic region and assists its client with developing and imple- menting platforms for gaming and betting as well as the actual games.
Growth Quality
Profit- ability
in 2007 the economy continued to be strong, with the result that many companies were able to continue investing in technology to improve their business. at hiQ we expe- rienced good demand for our services and, as ever, we have found ourselves facing strong competitors in the market. in today’s market there is room for small niche players, new start-up consultancies and large established players.
In early 2007 HiQ was voted Sweden’s Best IT Consultant 2007 in a survey conducted by Veckans Affärer. This year we are still in the top in this survey, at the same score as number one. Proof that we are standing up well to the competition we face. For us at HiQ, it is just as important as ever to deliver the best concei- vable quality in our assignments and to help our clients to strengthen their business using advanced technology. HiQ works with deman- ding clients – often companies with global operations and very high requirements of their suppliers. A high level of expertise, quality, financial strength and good references remain the key to success.
Today many companies are experienced buyers of consulting services and it is essential to have framework agreements with the large clients. Approximately 70% of HiQ’s sales are
generated by framework agreements.
HiQ is now established in Denmark, Finland, Sweden and Russia. And we face different types of competition in different markets.
Southern Sweden and the Öresund region, for example, are important growth markets for HiQ since a number of international telecoms companies are established here. A number of the large IT consultancies compete with us for business in these regions, but there are also a number of small local players that are spe- cialists in, say, the development of particular software.
The competitive picture is similar in other geographical markets, with both large players and small niche players – albeit with a slightly different profile depending on the area in which HiQ competes. In the west of Sweden the automotive industry has a strong foothold. In central Sweden we face competition in sectors such as defence, the financial sector and the telecoms industry.
In Finland, where HiQ has held a unique position for over ten years in the development of interactive gaming platforms, we are facing competition from various product suppliers within the gaming industry as well as from other consulting firms within telecoms and the public sector.
Where would hiQ be without its sparring partners?
competitors
ronniE PEttErson Was sWEdEn’s BEst-KnoWn racinG driVEr EVEr.
BEhind him Was alWays his fathEr BEnGt.
Bengt first built a small child’s tractor with a moped engine. he went on to design and build a go-kart with superior road-holding and later ronnie’s first formula 3 car. Before ronnie became a formula 1 star, Bengt was both his mechanic and his driver to competitions all over Europe. there is always someone behind the bright shining star.
When one of the major stock exchanges in the us needed a new system for derivatives trading, it asked omX for help with developing the system and its subsequent admi- nistration. and omX in turn asked hiQ for help with the project. hiQ has worked with omX for nearly ten years, on everything from requirements analysis and project manage- ment to major undertakings.
Major listed companies with which HiQ competes include Accenture, Cap Gemini, CyberCom, Enea, Sigma, Teleca and TietoEnator.
tietoEnator teleca accenture
cybercom
sigma cap Gemini
Enea
employees
What brings us to hiQ every day
I became interested in HiQ Softplan in 2006.
For the last six years I had been working as a private entrepreneur/consultant and I wanted to find other options for the future. There had been a lot of big changes in my life. Our first child was just born and our new house was just about ready for moving in. The “Great Place to Work” study raised my interest in HiQ Soft- plan and after reading more about HiQ on the homepage, I sent an open application for work.
A week later I signed the contract.
I am 32 years old and hold a Master of Sci- ence in Technology. I have worked in informa- tion technology for about 14 years. What made HiQ Softplan stand out was their expertise and long standing relations with their customers.
The values of HiQ Softplan also supported the fact, that there is more in life than just work;
HiQ also cares about my family’s well being.
I have learned a lot over the last year. Pro- ject offers, man-hour estimates, design, archi- tecture, test planning, implementation, project management, research on new techniques
– these are just a few examples of what I have done during my time at HiQ. My major project has been the about designing a platform for e-government services and pilot application for Finnish Communications Regulatory Authority (Ficora, Viestintävirasto).
I appreciate that HiQ Softplan offers me changing and challenging work cases and chances to learn new things. HiQ’s emphasis on the project management is fundamental for me. It is magnificent to see how the customer gets a full service of requirement specification, designing, software project management and application delivery.
In want my future work to include stimula- ting assignments and I want to educate myself.
I think HiQ Softplan offers me a great opportu- nity for that, especially when one considers the entire HiQ family.
Mikko Ruokojoki HiQ Softplan
imagine you are involved in developing a completely new kind of product for mixing music at home. or the latest pocket-format communications centres, still known as mobile phones for the time being. or new platforms for online gaming on the internet. or systems for ticketless travel on public transport. or intelligent cars that think for themselves so as to avoid accidents as far as possible.
it is inspiring, challenging and instructive to be at the heart of technological developments and, together with our clients, to develop all these products and services that we all – young and old – use in our lives every day. hiQ’s client list is long and broad. We work with large international corporations and local nordic companies. in every possible sector.
this is what four of our employees think about hiQ and what drives them to go to work each day.
