A n n u A l R e p o R t 2 0 0 9
Anoto Group AB Anoto Inc. Anoto-Maxell K.K. C technologies AB
Anoto Annual Report 2009
Anoto Group was founded in 1999 and has created the first commercial system for digital pen and paper. Today, Anoto is world leading in digital pen and paper technology, a technology that enables fast and reliable transmission of handwritten text and illustrations into digital format, not only from paper but also from surfaces such as white- boards, glass and LCD screens.
Anoto operates through a global partner network that focuses on user-friendly forms solutions for efficient capture, transmission and storage of data within different business areas, such as Healthcare, Banking & Finance, Transport & Logistics, Facility Management and Education.
Anoto has more than 300 partners across all continents and in more than 50 countries.
Protecting innovation is central to Anoto and the com- pany currently has more than 300 patents and 260 patent applications.
The Anoto Group has around 110 employees and its headquarter is situated in Lund, Sweden. The company also has offices in Boston och Tokyo. www.anoto.com
RHR Cor
A n n u A l G e n e R A l M e e t I n G
Contents
A word from the CEO 2
The Business Model 4
Anoto 10 year s 9
Anoto Products 10
Anoto Technology & Licensing 14
The Share 18
Five-year Summar y 20
Definitions 21
Management Repor t 22
Financial Repor ts 25
Notes 34
Audit Repor t 55
Cor por ate Gover nance 56
Board of Director s 59
Group Management 60
Annual Gener al Meeting 61
2 0 0 9 I n B R I e f
Anoto’s Annual General Meeting will be held on May 5, 2010 at the Anoto premises, Traktorvägen 11 in Lund, Sweden. Any shareholder wishing to participate in the meeting must notify the company in one of the following ways:
* Phone: +46 46 540 1200, Fax: +46 46 540 1202
* E-mail to AGM.2010@anoto.com
* In writing to Anoto Group AB, Box 4106, SE-227 22 Lund, Sweden
The notification must reach the company by 12:00 noon on Wednesday, April 28, 2010. To be entitled to participate, the shareholder must also be entered in the Euroclear Sweden AB share register by April 28, 2010. Any shareholder who has regis- tered his or her shares under a trustee must temporarily register them in his or her own name with Euroclear Sweden AB by Wednesday, April 28, 2010. When submitting the notification, please state your name, personal identity or corporate identity number, address, phone number and number of registered shares. If you are participating by proxy, you must submit the authorisation to the company prior to the meeting.
Financial reporting
Anoto Group’s financial reports are released in Swedish and English. The easiest way to obtain the reports is by downloading them from www.anoto.com or e-mailing a request to
AGM.2010@anoto.com or phoning +46 46 540 1200.
Following is the schedule of Anoto Group’s financial reports for its 2010 financial year.
January-March interim report May 5, 2010 January-June interim report August 2, 2010 January-September interim report November 8, 2010
2010 year-end report February 3, 2011
2010 Annual Report April 2011
2011 Annual General Meeting May 2011
Anoto’s Annual General Meeting will be held on May 5, 2010
at the Anoto premises traktorvägen 11 in lund
WHAT DOES ANOTO DO?
Anoto develops pens that turn handwritten text and drawn illustrations into digital information, enabling a multitude of possibilities for quick and reliable distribution and storage. Anoto’s digital pen technology also creates opportunities to make information more interactive.
WHAT DOES ANOTO OFFER ITS CUSTOMERS?
together with its partners, Anoto offers cost-saving and effective solutions for mobile registration of data and interactive applications. All of this is provided within a single system consisting of a software application, digital pens, and unique pattern technology.
WHO ARE ANOTO’S CUSTOMERS?
Anoto’s end-customers operate in a number of different segments that require simple and mobile solutions to capture handwritten information. examples include Healthcare, where our solutions are used for tasks such as registering medical journals, and facility Management, in which many companies often use forms.
other customers develop interactive conference and educational material for companies, students and pre-school children.
WHERE DO ANOTO’S REVENUES COME FROM?
Anoto’s revenues primarily come from the sale of digital pens and technology licenses.
FIVE STRONG ARGUMENTS FOR ANOTO’S TECHNOLOGY
• It’s as easy to use as pen and paper
• It’s mobile and can be used anywhere without any great need for infrastructure such as computers and networks
• It’s efficient – information doesn’t need to be entered twice
• It’s a reliable but also cost-effective and environmentally efficient solution
• It provides interactivity in a simple way
key ratios for the Group
(SeK thousand) 2005 2006 2007 2008 2009
net sales 113 230 108 725 122 733 143 975 205 862
other income 19 180
Gross profit/loss 79 395 78 404 111 145 98 662 142 472 operating profit/loss -79 775 -131 823 -19 592 -51 645 -20 848 profit/loss after tax -13 884 -132 965 -16 749 -60 903 -20 678 Cash flow for the year 169 554 -31 649 -48 540 -31 957 -18 574 earnings per share (SeK) -0.11 -1.03 -0.13 -0.47 -0.16 Shareholders’ equity per share (SeK) -4.39 -3.56 -3.52 -3.8 -3.65
equity/assets ratio (%) 79 80 81 81 84
Average no. of employees 110 121 103 127 113
Cash flow for the year (sek thousand)
-100 000 -50 000 0 50 000 100 000 150 000 200 000
2009 2008 2007 2006 2005
net sales (sek thousand)
0 50 000 100 000 150 000 200 000 250 000
2009 2008 2007 2006 2005
profit/loss after tax (sek thousand)
-200 000 -150 000 -100 000 -50 000 0 50 000 100 000 150 000 200 000
2009 2008 2007 2006 2005
equity/assets ratio %
40 60 80 100
2 0 0 9 I n B r I e F
Strong growth and improved earnings
• Net sales for 2009 increased by 43% to MSEK 206 (144)
• The result after taxes was MSEK -21, which is an improvement of MSEK 40 on 2008
• Earnings per share amounted to SEK -0.16 (-0.47)
• Cash flow for the year was MSEK -19 (-32)
• The positive effects of the acquisition of Hitachi Maxell’s digital pen operations became clear in 2009, with digital pens now accounting for 43% of net sales (37%)
• Several customers within Technology & Licensing have launched their own interactive products during the year, such as white- boards, flip charts, etc. based on Anoto’s technology
• Anoto’s digital pen, in combination with paper forms, continues to be successful within the Healthcare sector around the world, and Anoto Products is growing steadily with new partners and new application areas
A w o r d F r o m t h e C e o
A good 2009 and a good basis for continued success
The 2009 financial year resulted in a good perform- ance and was fully in line with our expectations. Sales increased by just over 40 percent, driven in particular by Anoto Technology & Licensing. Bottom-line earnings improved by SEK 40 million and cash flow also im- proved. This shows that we are on the right path.
a new company celebrating its 10th year
These successes are founded on our unique product offering.
An offering based on the C Technologies scanning pen intro- duced 12 years ago and which Anoto, which celebrated its 10th anniversary in 2009, is constantly developing. But it is also founded on the strategy that we established in 2006, primarily based on three cornerstones:
a new business model
The first cornerstone is a new business model that is focused on the market and on customer needs more than on our cut- ting-edge technology. In practice this means that, within carefully chosen market segments with scope for development, we look to cooperate with equally carefully chosen partners that bring expertise in marketing and application of the technology.
a larger share of the value chain
Another cornerstone is to take a larger share of the value chain. This was the rationale behind the acquisition of Maxell’s production of digital pens in mid-2008. This business was successfully integrated with Anoto during the year and we can now deliver a com- plete digital pen instead of only technology. This not only enables us to increase value per cus- tomer. It also allows us to ensure functionality for both partners and end-users, and we can be more responsive to new needs and functions.
The greatest advantage that it offers, however, is
that we can standardize and develop our AFS platform for dig- ital pen technology, enabling us to create more reliable, better and less expensive solutions. This is fully in line with our vision of creating a global standard for digital pen technology.
Better cost-effectiveness
The third cornerstone of our strategy is strict cost control. This has meant that, despite increased sales, we have been able to keep fixed costs for comparable units at the same level over recent years.
huge market potential
The pen has been the simplest and most important information tool for the past 6,000 years. It is still the most important tool for mobile documentation and is frequently used within a range of sectors and businesses for specific activities such as sales, checking, marking, record-keeping and logistics, to name but a few. Pens are needed everywhere and Anoto’s digital pens can often do the same task, only better. This means that the market is almost endless. We need to set our priorities, and have there- fore chosen a number of large global market segments where we see growth potential.
Until now Anoto Products has mainly focused on the Healthcare sector. This sector includes a number of processes in which our technology can create significant added value in the
form of lower costs and better quality for end- user processes. However, we have also iden-
tified a number of other segments that we consider to be of interest within Banking and Finance, Transport &
Logistics, and other areas.
Within Anoto Technology &
Licensing, which is growing rapidly, we already see major potential for efficiency improvements within the area of education. Demand is being
the greatest advantage is that we
can standardize and develop our platform for digital pen technology, fully in
line with our vision of creating a global standard
for digital pen
A w o r d F r o m t h e C e o
driven by the prioritization of this area by both public authorities and private companies. One exciting example is our partner TStudy in South Korea, that with our help, is developing an application for effective homeschooling. Another example is Polyvision®, which launched its interactive ēno™ whiteboard in 2009. We are constantly looking for new areas to develop.
increased volumes are highest priority
Our focus on growth within carefully chosen segments is start- ing to generate results, and we are seeing higher growth in all these areas. Increased volumes also provide us with the oppor- tunity to develop more steadily over time, since a single order will not have such an effect on results in a particular quarter.
We are pleased to note that Anoto is getting close to gen- erating positive earnings. Our high contribution margin ratio does not require particularly large volume increases for us to achieve a profit and to further improve profitability in the long term.
Our partner-based business model also means that in the longer term we can increase volumes without significantly in- creasing our overhead costs. Intensified partner cooperation and finding new partners are therefore a top priority.
new ideas take time
With good products and significant market potential our sales trend might well be expected to show a sharp upward trend.
But the sale of new ideas takes time. We are definitely seeing considerable and increasing interest from partners and poten- tial customers. The challenge is to persuade them to switch from their old systems. We do this by primarily working with market segments that often use paper-based processes for which Anoto’s technology offers quicker, more reliable and more cost-effective management of information.
We believe that growth will continue to increase. Both market reactions and our financial performance indicate that
a good basis for continued success
Stable owners, no debt, good liquidity and improved cash flow also provide us with a good basis to manage both rapid growth and competition.
Our solution is precise and simple to use, while the tech- nology behind it is complex, proven and protected by a broad portfolio of patents.
We have full control over the complete solution, including patterns, platforms and pens, which makes sales, support and customer relations easier.
Our own platform, AFS, also creates new opportunities to find new partners, such as system integrators, with a focus on implementing Anoto’s product offering in existing systems.
Anoto’s 10 years in the market have provided us with a strong global footprint. By this I am not referring to our interna- tional sales offices, but mainly to the fact that our solutions are now in use across all continents. Anoto is the company that potential customers primarily think of with regard to digital pen technology.
Last but not least, we also have highly skilled and committed staff. I would like to take the opportunity to thank them for their exceptional work in 2009.
Overall, I can only see an exciting and promising future for Anoto.
Anders Norling
CEO and Head of Group Lund, Sweden, March 2010
0,3 mm
Right Up
Left Down
B u s i n e s s m o d e l
mobile, efficient, accurate and interactive data
capture
We live in a complex world that places ever-increasing demands on information, education, checking procedures and, in particular, documentation of numerous processes.
Information has traditionally been registered, produced, stored and distributed on paper. But for an increasing number of people it is becoming increasingly important to access information quickly from anywhere in the world. These needs, together with greater cost-effec- tiveness and environmental efficiency requirements, are driving demand for digital document management.
Anoto’s market is based on the need to accurately capture data directly at source, irrespective of location. It is also based on the increased interactivity with which we are faced each day in the form of touch-sensitive monitors, multiple-choice questions in educational settings, game consoles and buyer assistance in shops, to mention just a few examples.
The simplicity of writing with the possibilities of digital technology
Our business is based on a digital pen that is available in a number of models. Most of the pens can be used to write with, but primarily they digitally capture and store records and notes via the pen’s built-in camera and image processing technology.
Using a cable, Bluetooth® connection or the mobile Internet, these records can be transferred to a designated computer anywhere in the world.
The camera registers the pen’s movements over a pattern of nearly invisible dots on a writing surface such as paper forms, whiteboards, flip charts or books. The dot pattern is supplied as a computer file so that each user can print their own unique pattern on note paper or other writing surfaces.
The dot pattern makes it possible to link audio comments to a note or illustration through a built-in microphone featured in some of the pen models. These comments, or other sounds, can also be played back via a small speaker included in certain pen models.
Anoto’s unique dot pattern consists of small, nearly invisible dots printed onto an imagined grid. The dot pattern codes the x and y coordinates in a large continuous area. Anoto’s dot pat- tern can be printed on regular paper using a normal printer.
Both images and text can be printed out on top of the unique pattern.
Connecting pen and paper to the digital world Our core business idea is to take advantage of the benefits of the simplicity and availability of the pen’s handwritten text, to- gether with the possibilities of digital documents in terms of processing, storing and distributing information.
The traditional benefits offered by a pen are built into Anoto’s pens, which can register handwritten text and illustrations. But unlike traditional pens, our pens can transfer the information they capture to a designated computer in the same room or anywhere in the world. This gives users the ability to register and transfer information directly at source without any great need for computers and networks. This prevents duplication of work and the risk of errors. In short, we offer a simple, fast, reliable, efficient and mobile solution for making handwritten information easily accessible.
Interactive solutions for better learning
We are also developing our technology further by working with partners to apply our unique dot patterns to other writing sur- faces such as textbooks, whiteboards, flip charts and exercise books.
For these solutions, the educational sector is in focus, and we are developing pens based on our proven technology but that are adapted for these applications. This enables us to increase the effectiveness and interactivity in educational and informa- tion-oriented settings. The solutions that we are developing together with our partners enable an entire group to work interactively. This means less time spent on documentation and
Anoto’s unique dot pattern consist of numerous small black dots that can be read by the digital pen. There are around 700,000 dots on an A4 sheet of paper.
B u s i n e s s m o d e l
Digital pen and paper is as easy to use as normal pen and paper. The handwritten information can be transferred to a computer placed anywhere in the world.
The pen uses normal ink and the infrared camera is built-in, par- allel to the ink cartridge. The camera takes 75 images a second.
Ink
Battery
Processor
Bluetooth® Transceiver
Memory
B u s i n e s s m o d e l
more time on teaching. And that makes for more stimulating and effective learning.
Our application provides a simple solution for users that does not require a complex electronic writing surface. This pro- vides a better solution and greater precision at a significantly lower cost than alternative technologies.
Our technology is also used in children’s educational books that contain our almost invisible dot pattern, so that our part- ners’ pens equipped with small speakers can link sounds to text and images.
Applications for a number of growing markets
There is an endless number of areas in which handwritten doc- umentation needs to be saved for future use and where our applications can create significant added value for users. One example is the Healthcare sector, where all actions taken need
to be documented. The Banking and Insurance sector uses large numbers of forms, as do many public organizations. There are also interesting areas within Facility Management, such as in- spection and security surveillance, that often require notes to be taken.
We see a considerable need for innovative solutions within Education, which is another of our prioritized segments. This is a large sector that ranges from pre-schools through universities to internal corporate education. This is also a market that we expect to expand. This is partly because a lack of past invest- ment worldwide in this area now means that the educational sector needs to upgrade facilities, and partly because the knowledge society is becoming more complex, which is also increasing the need for education. Other segments that require interactive solutions include gaming and entertainment, personal productivity and toys.
TECHNICAL PLATFORM
ANOTO PRODUCTS
ANOTO TECHNOLOgy
&
LICENSINg
B u s i n e s s m o d e l
Partners for faster growth
In order to reach our chosen market segments we work with partners all over the world. Together with them we create com- mercial applications that are based on our technical platform and our partners’ expertise in applications and marketing. Our partners contribute by meeting specific requirements and re- quests that end-users have and that are necessary for a suc- cessful application. This cooperation provides us with quicker access to important knowledge about current market segments.
Above all, we gain access to new markets that are of interest, providing us with good growth opportunities. Cooperation with partners also means that applications for several markets can be developed in parallel. In short, this approach enables us to quickly and significantly increase our volumes without substan- tially increasing our total costs.
An organization adapted to the market
In order to obtain the best organization of our technical plat- form we have divided our business into two distinct application areas: Anoto Products and Anoto Technology & Licensing. These two areas are optimized to handle the demands of their re- spective market segments and customer groups. Our sales or- ganization is also organized to provide optimum support for these areas.
Anoto Products
Anoto Products focuses on systems, services and products pri- marily within forms processing, with partners including system integrators, software developers and IT consultants. These part- ners offer corporate customers and end-users customized solu- tions based on Anoto’s digital pen and paper technology. The basis of this offering is Anoto’s digital pen, in combination with our Anoto Forms Solution software platform, which we have developed and are constantly developing. The technology can be applied in any situation where information is captured by non-deskbound, mobile staff at separate locations within a busi-
Anoto Technology & Licensing
Technology & Licensing develops and sells digital pens and re- lated technology on an OEM basis to market-leading customers.
Customers develop their own product offerings based on the technology and pens that they purchase from Anoto. A number of these products are interactive, enabling real-time audio or visual feedback. These types of application include educational toys and tools, equipment for visual communication such as whiteboards, and solutions within the field of personal pro- ductivity.
A successful strategy
This new strategy, which was established at the end of 2006 with a focus on customer needs instead of technology, and greater responsibility for the entire value chain, has proved successful. Between 2006 and year-end 2009 Anoto increased sales by 89 percent. We now have around 330 partners, and the number of partners is constantly increasing. This allows for additional growth of both sales and earnings.
Continued work to develop the business
Our ambition is to set a global standard for digital pen technology.
Our approach is based on us being the leading and pre- ferred partner in those segments in which we have chosen to operate. To this end, and to continue our growth and increase our profitability, our work is based on six strategies.
Concentration
We are focusing on and concentrating our resources within two application areas: Anoto Products and Anoto Technology &
Licensing. This strategy resulted in the divestment in December 2008 of our subsidiary Logipard, since we deemed that it was neither part of our core operations nor strategically important.
As a result of this, we will no longer provide reporting for the Imaging Technology application area. We will, however, continue to sell ASICs to existing customers. From 2010 onwards sales and earnings from this area will be reported under Other.
Focus on chosen market segments
The segments in which we operate currently include Health- care and Education, which are two large markets with many processes where our technology can add value and where we have the opportunity to grow. Another market that we will prioritize over the coming year is Facility Management.
Of course, we are interested in all customers that could benefit from digital pens. However, we will continue to focus our resources on carefully chosen market segments. Our priorities are segments that can benefit from
interactivity or that have a number
A partner-driven business model
of processes with large flows of paper combined with mobile use. Other criteria are size and expected growth. A global per- spective also provides us with the opportunity to cost-effectively get our solutions out onto a larger market and increase our international presence. We currently have good geographical coverage, with offices in Boston, Lund and Tokyo and partners on all continents.
Cooperation with partners
This geographical coverage provides us with good opportunities to find, assess and develop our partners. This is important, since they form a central and essential part of our business. We will therefore continue to cooperate with our existing partners while also actively recruiting new ones.
greater control over the entire value chain
To safeguard the business and increase value per customer we want to have control over the entire value chain, from develop- ment, through production to marketing and sales. It is in this light that the 2008 acquisition of Hitachi Maxell’s digital pens division should be viewed. Through our ability to now deliver complete pens for all customer applications, instead of only the technology, we can ensure both quality and supply as well in- creasing sales value per customer. This generates positive effects for our earnings.
Technical development
We are continuing to develop our core innovation – precise positioning and digital pens for different types of surfaces such as paper, whiteboards and monitors. Work is organized so that core research covers the entire business, while development is related to the respective application areas.
Patents
We patent our solutions not only to protect them, but also so that our partners feel secure in their cooperation with us. This is necessary in order for our partners to be prepared to invest both time and money in a joint development process and, in particular, in marketing. Since patent management is so key, we have our own internal patent department. In addition to seeking new patents and the protection of patterns, this department also monitors our more than 300 patents and 260 patent applications.
B u s i n e s s m o d e l
the areas marked in red show where Anoto’s partners are located.
Anoto’s partners in turn have their own partners and distributors who sell Anoto’s technology in these as well as other countries.
Anoto offices partners
From idea to 10 years of business
Our company was born almost 16 years ago when Christer Fåhraeus came up with the idea of a pen that could read text using advanced imaging technology. Anoto AB was founded in 1999, followed in 2000 by the launch of the company’s next product idea – Anoto’s digital writing pen.
1 0 t h A n n i V e r s A rY
1996-1998 DEVELOPMENT
2005-2007 A NEW STRATEgy TAKES SHAPE
2008-2009 STREAMLININg
OF THE BUSINESS ANNIVERSARy
10 years of Anoto research demonstrates the possibility of imple-
menting the idea and of mass production at reasonable cost • A patent is sought for the pen, which is branded the C-pen • C technologies is formed • the C-pen prototype is completed
• the C-pen is launched in sweden
hitachi maxell’s digital pen division is acquired at the end of 2008. this allows for both platform standardization and the ability to offer partners a complete solution • the imaging technology business area, including AsiC development and sales, is sold • the Anoto Qualified solution program is launched • significant cooperation
1999-2000 LAUNCH
Anoto is formed to establish a global standard for paper-based digital communication and to develop the Anoto writing pen • the concept is presented to world press in london in April 2000 to great interest • the C-pen scanning pen is launched internationally
2001-2004 NEW
COOPERATION PROJECTS
April 2002 witnesses the introduction of the first digital writing pen with wireless data transfer via Bluetooth® • A year later sees the launch of a second model with direct data transfer to a computer via cable • A third model is introduced with both Bluetooth® and cable link, a combined feature of all subsequent pen models • hitachi maxell launches a fourth digital pen on the Japanese market • hp introduces a solution using laser printers to print forms based on Anoto’s technology • Cooperation begins with standard register (us) and the dai nippon printing group (Japan)
leapFrog announces the launch of FlY pentop based on Anoto’s technology • Anoto opens an office in oakland, California to create content and applications for consumer solutions • Company strategy is changed to focus on forms processing and business-to-business solutions • A new, more market-oriented company organization is implemented • the number of active forms users doubles in a year • several landmark orders for solutions are received from both the healthcare sector and other market segments • u.s.-based livescribe acquires Anoto’s subsidiary in oakland and the rights to use Anoto’s technology to develop the pulse smartpen for students and consumers
A n o t o p r o d u C t s
Anoto products focuses primarily on forms processing
According to Gartner, 85% of all business processes begin with a form. This is the market at which Anoto Products is aimed.
Anoto Products focuses on systems, services and products primarily within forms processing. Anoto uses an indirect business model and markets its products via partners, including system integrators, software devel- opers and IT consulting companies.
These partners offer corporate customers and end-users customized solutions based on Anoto’s digital pen and paper technology.
Anoto Products also includes the original C-Pen, which is used to capture and register selected informa- tion from printed sources such as books and maga- zines. We also sell other complete products, such as scanning and translation pens.
Our offering – a complete system
Aoto Products sells Anoto’s digital pens, pattern, licenses and the solution platform AFS to partners for use in end-customer solutions. Digital pens and patterns are products that existing partners buy on a regular basis.
Anoto’s main offering to new partners is called Anoto Forms Solution (AFS), which is a solution platform for forms.
AFS eliminates the time-consuming manual steps in traditional forms management processes, making the process largely auto- mated. The product comprises all the components needed to create and support a process to use digital pen and paper in order to store and transfer handwritten information from paper forms to any type of back-end system. AFS is a reliable, scalable and user-friendly solution that can be used for both small and large environments. AFS is the product that we market and sell to all new partners, since this solution allows them to create pilot products more quickly and focus on sales and implemen- tation for end-customers.
A simple, effective and reliable solution
A key advantage of digital pen and paper is that it is as easy to use as normal pen and paper, which means considerably lower costs for training, support and maintenance compared with other digital technologies. In addition, digital pen and paper allows for faster processes, less risk of errors, greater productivity and other tangible cost-savings, since there is no need to duplicate the registration of information or to have copies of documents.
Moreover, eliminating copies of documents makes for environ- mentally efficient solutions.
A good example of an end-customer within the Anoto Products area is the municipal authorities in Sweden. Four years ago Anoto’s partner, Catrel, introduced the Mobipen Care IT system in home-help services in the Solna municipality, just out- side Stockholm. This solution provides additional security for patients, their families and home-help staff. Each visit and service that is carried out is documented both in written form and digitally. This enables family members and managers to easily en- sure that adequate care is being provided. Solutions with digital pen and paper are now used in over 40 municipalities, including Sundbyberg, Kristianstad, Lomma and Karlskrona. Other exam- ples of applications are doctors’ medical journals, parking tickets and order-taking. Anoto’s digital pens can be used in all situa- tions where information is captured by non-deskbound staff.
A n o t o p r o d u C t s
With Anoto pendocuments pro hand- written notes are stored digitally when writing with Anoto’s digital pen. there is immediate access to the digital copy, which can be sent anywhere in the world.
Important events in 2009 Anoto products showed good growth compared with 2008, at 51%.
Anoto Group received an order for 3,600 digital pens for the uK market as part of a contract within the state sector. this is one of our largest individual orders so far.
Anoto received the Frost & sullivan
’2009 european Care management systems industry innovation and Advancement Award’. Anoto was awarded the prize for its technology for digital pen and paper within the european healthcare sector.
AFs 2.0 is being finalized before its launch in 2010.
About 60 new partners were recruited.
OFFERINg:
Anoto Forms solution, digital pen and pattern, together with a customer-specific application
0 25 50 75 100 125 150
2009 2008
2007 MSEK
Net sales Gross profit
Financial performance User-friendliness is a key competitive advantage
Anoto’s digital pen and paper is a unique and patented tech- nology. There are no direct competitors to Anoto’s digital pen and paper solutions for data capture using forms. Anoto mainly competes with other types of technology, such as tablet PCs, PDAs and smartphones. Market development is driven by in- creased knowledge about digital pen solutions and penetration in existing and new markets, as well as the need for cost-effec- tive and user-friendly solutions. Independent surveys and end- customers both demonstrate that Anoto’s digital pen and paper technology is more user-friendly for data capture than other available technologies. Another competitive advantage that Anoto has is its large partner network with partners in more than 50 countries. Customers in a number of documented roll- outs have confirmed that the total investment for a solution with Anoto’s digital pen and paper generates significant cost benefits compared with PDAs and smartphones. In conclusion, the advantages of digital pen and paper are faster paper-based processes, less risk of error, greater productivity and tangible cost savings.
A n o t o p r o d u C t s
Improving an old but crucial process
EMEF is the largest Portuguese maintenance company for rolling stock, such as electric and diesel locomotives and railcars. It is obligatory for the company to document events that occur during train trips. The train driver reports these events in a logbook, something that has been done for more than 50 years. EMEF wanted to improve the old, but crucial process, in order to better plan maintenance, reduce train downtime and increase train availability.
Challenge
Condition
result Better planned maintenance
Previously, if for example, a broken windscreen needed to be replaced, this was first discovered during regular checks and the train was taken out of operation. If spare parts were not available, it could take several days until the problem was solved. Today, as service personnel receive information in real time, they can work more proactively, and the necessary material and maintenance personnel can be arranged for in advance. Therefore, train availability has been increased. And, since maintenance can now be better planned, operational breakdown can be avoided and trains can keep their schedule.
Furthermore, the new solution means that the handwritten information is directly transferred to the company’s SAP database – which saves time and increases the reliability of the data. And in addition to this, EMEF’s paper consump- tion has been reduced by 50%, corresponding to 1,500 trees in five years.
Read more on www.anoto.com
Information is transferred in real time
EMEF has therefore started using a digital pen and paper solution developed by Fluxima.
A digital pen is integrated in an aluminum case in the driver’s dashboard. When an event occurs during the trip, the driver opens the case, takes out the pen and writes in a logbook with Anoto functionality. As the driver puts back the pen into the case, the pen is connected to an embedded computer system, and the information is then sent in real time to the back office and workshops.
Thanks to the new solution, the personnel at the workshops can directly order material, and when needed send service technicians to quickly attend to the problem already at the next train stop. In the past, the service personnel only received the information during main- tenance stops, which could delay the process, since regular maintenance stops are only performed at an interval of 10 to 30 days.
When the maintenance issue is solved, the service technician takes the pen and fills out the information in the logbook and signs off. The maintenance event report is now closed and transmitted to the customer – Portuguese Railways.
Better serViCe FAster
Replacing frustration with success
With the help of Digital Pen and Paper technology, information is transmitted in real time and all the users and offices can simultaneously receive secure and controlled access to the information collected. Thanks to this, FAO can prevent outbreaks of diseases and the dramatic effects of sud den droughts or floods. This is of key im portance, as severe drought since 2000 has lead to limited grazing and water points. Moreover, the solution has im- proved the information management capacity, since data collection methods now can be standardized throughout the region. After this successful implementation, FAO is now think- ing about using digital pen and paper for the Cassava Disease Monitoring project, where the goal is to make cassava a key crop in order to fight hunger among farmer families and their domestic animals in Africa.
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A n o t o p r o d u C t s
Challenge
Condition
result
Too little, too late
The United Nations organi zation Food and Agriculture Organization (FAO), leads interna- tional efforts to defeat hunger. Too little, too late. That had long been the frus trating effect of FAO’s drought and infectious disease programs in Sub-Saharan Africa. Due to electricity constraints and limited computer access, there was a lack of timely information from the various collecting sources – particu larly those in remote areas – which was getting in the way of efficient and well-timed actions.
Digital pen revolutionizes data collection
Today, Anoto Digital Pen and Paper technology is being used by FAO in Namibia, Zambia, Mozambique, Malawi, Tanzania, Zimbabwe and Kenya. The application means that field work- ers register data with the digital pen into a specialized form, created by Xcallibre. Then, the informa tion is saved in the pen’s memory, awaiting transmission using GPRS or Internet.
Next, the data is processed and sent by e-mail to the relevant actors, who can return instruc tions to field staff on what steps to take. ”The pen appeared to be an almost revolu- tionary way to over come a big problem with gathering data from the field and making timely decisions in case quarantine needed to be im posed. If there is a case of rabies or an out- break of a deadly disease, a field worker can send the detailed surveillance data imme diately only using a mobile”, says Fred Musisi, FAO’s Regional Emergency Livestock Officer.
instAnt CommuniCAtion ensures heAlth
A n o t o t e C h n o l o G Y & l i C e n s i n G
Anoto technology
& licensing for education and entertainment
Technology & Licensing develops and sells digital pens and related technology on an OEM-basis to market- leading customers. These customers develop their own product offerings based on the technical components and pens that they purchase from Anoto. Examples of these sorts of products are educational toys and tools, equipment for visual communication such as white- boards, and solutions within the field of personal pro- ductivity. A number of these products are interactive, providing real-time audio and visual feedback as users touch or write on interactive areas, i.e. surfaces with Anoto’s pattern.
Our offering – a complete system
Technology & Licensing customers are offered either complete pens on an OEM-basis, or pen technology that customers can use to develop their own pens. Examples of complete pens include Polyvision® and Hamelin, while Livescribe and LeapFrog are examples of customers that have developed their own pen products. When we offer pen technology for specially devel- oped pens, partners cooperate closely with Anoto’s develop- ment department before a final product reaches the market.
Three integrated technologies
Solutions based on three integrated technologies:
Pen technology that comprises hardware and software components that can be incorporated with other products or form the basis for new products.
Software modules for the management of pattern and design, as well as print-out. The pattern can be printed out using standard offset, digital and laser printers and can even be printed on surfaces such as whiteboards, glass and LCD screens.
Anoto’s API for software is used to develop, analyze, process and manage information from the pen.
Better opportunities to create customer value Anoto’s digital pen technology replaces existing tech- nical solutions in a more cost-effective and user- friendly way than existing technology. The solution often results in a better ability to interact and sometimes leads to the creation of entirely new categories of products. An example of this is the Pulse Smartpen from Livescribe, which uses Anoto’s technology to index sound recordings from events such as lectures. Users can add audio recordings from a lecture to their notes and play them back as often as they like.
Extensive cooperation with strong partners
Anoto enters into a smaller number of cooperation agreements within its Technology
& Licensing area, but these are larger in scope. Customers have their own marketing, distribution channels and unique market segments. The digital pens and solutions are usually unique for each customer, which means that cooperation makes consider- able demands on development and resources in the start-up stages. In 2009 both Polyvision® and PLUS launched interactive whiteboards with digital pens based on Anoto’s technology.
At the end of the year ACCO Brands Europe announced its cooperation with Anoto and how it has applied our technol- ogy within the area of digital flip charts. Anoto has developed a digital marker pen that makes it possible to transfer information digitally from a flip chart to a computer.
A n o t o t e C h n o l o G Y & l i C e n s i n G
the picture shows leapFrogs’ pens tag reader och tag Junior. the books are printed on paper with Anoto’s unique dot pattern, which enables the pens to read text och illustrations. the pens have built-in spekers and children can there- fore listen to their favourite stories.
Important events
technology & licensing demonstra- ted excellent growth of 70%.
during the year polyvision® laun- ched a portfolio of ēno™ products (interactive whiteboards in various sizes): classic, mini, flex, click.
launch of leapFrog tag™ Junior.
plus upiC, a portable interactive whiteboard that can be rolled up, was launched.
ACCo Brands’ nobo Kapture™ digital Flipchart was launched at end of the year.
Cooperation agreements in the area of education worth usd 3 million were signed in december with south Korean company tstudy.
Better performance provides competitive edge The competitive advantages of Anoto’s technology over other solutions include its cost-effectiveness, flexibility and perform- ance. Surfaces such as whiteboards, flip charts and books are simple to use and require no built-in electronics. They work using Anoto’s unique dot pattern, which is read by a pen. The intelligence is in the pen, and the same pen can be used on different types of surfaces and multiple pens can be used on the same surface. In addition, the technology is equally precise over the entire surface, regardless of its size.
OFFERINg:
technology & licensing offers customers a complete system, providing for a range of prod- ucts, based on three compo- nents: digital pen technology, paper/surface and pattern, and applications.
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A n o t o t e C h n o l o G Y & l i C e n s i n G
Bringing achievement and learning to life
At Groesbeck Independent School District (ISD) in Groesbeck, Texas, there was one thing that Superintendent Dr. Harold Ramm and Technology Director Cathy Koenig desired: 21st century classrooms that utilize the most advanced educational technology to drive higher student achievement and learning to life. Interactive whiteboards are a critical component of the 21st century learning environment and Koenig was determined to find out which board worked best for the instructors in her district.
Challenge
Condition
result Positive learning and teaching with cutting-edge technology
Before using ēno™, the teachers at Groesbeck ISD had to mount an interactive board over a traditional whiteboard. With ēno™, teachers can use the whiteboard the traditional way as well as interactively. In addition, since ēno™ does not require cords or cables, the teachers do not have to worry about children tripping over wires or costly installation. Further- more, the technology is in the stylus and not the board. Therefore, should anything hap- pen, the board does not have to be sent back for repair. Only the stylus has to be re- placed, something which can be done already the same day.
With ēno™, Groesbeck ISD can put cutting-edge technology in the hands of all students regardless of their economic background. “Our goal in the end is to prepare our students to be successful by providing them with first-in- class technology that is easy to use and has a direct impact on their learning experience and achievement. With our efforts over the last year, we feel that all the pieces are in place to provide a positive teaching and learning environment to ensure that every kid is a winner.”, says Dr. Ramm.
Source: www.polyvision.com
Interactive whiteboards connecting classroom technology to established curriculum
After having evaluated a number of interactive whiteboards with regard to durability, ease- of-use and total cost of ownership, Groesbeck ISD selected PolyVision’s ēno™ board, based on Anoto technology, to connect classroom technology to the school district’s established curriculum. Because ēno™ is a three-in-one interactive whiteboard – enabling the use of magnets, markers and multimedia – teachers can combine various teaching methods in order to reach students with different learning needs.
With ēno™, teachers can use the wireless stylus, computer and projector to make the whiteboard interactive. Or, they can use traditional dry-erase markers on the ēno™ surface, just as they would with a traditional dry erase board. Furthermore, the magnetic surface also enables students to work with problem solution using magnetic manipulatives.
user-FriendlY teChnoloGY For positiVe leArninG
A n o t o t e C h n o l o G Y & l i C e n s i n G
Making a normal book interactive
The Tag™ Reading System eliminated the cumbersome board that was previously required and LeapFrog is now able to produce books without limitations on size and shape. The product is based on Anoto’s digital pen and paper technology and is aimed at children between the ages of 4 and 8. It is the first reading system that enables children, with the aid of a pen (Tag™ Reader), to interact directly with real books. The pen contains a sophisticated infrared camera and speaker and the books are printed on paper with Anoto’s unique dot pattern, enabling the pen to interpret text and illustrations.
Challenge
Condition
result
FleXiBilitY And interACtiVitY proVide stimulAtion
Talking books
LeapFrog is a leading designer, developer and marketer of innovative and educational prod- ucts. The company focuses on developing products that make children’s learning as effective and as fun as possible, both at school and at home.
In 1999 LeapPad introduced “a talking book” for children aged 4 to 8. LeapPad, “an electronic educational tool,” was highly successful, with sales reaching more than 30 million LeapPad units since its launch and 72 million interactive books. Despite its success, the product had certain limitations. To listen to the books, users had to place the book on a special plastic board and inform the board that the book had been changed by loading it with a cartridge. In addition, it wasn’t possible to flick through the books at random. Users had to press a page-change icon in order to read on. As a result of this, LeapFrog decided to develop a new product and the company presented its next-generation system Tag™ Reading System in June 2008.
Flexible solution
Children can listen to the book by using the pen to touch different areas in the book. They can listen to the whole story, or skip between pages, lines or words in any order they wish.
Using the pen, children can also activate songs and other sound effects, making the reading experience and learning process stimulat- ing and fun. Online connection also provides children with fun rewards for their play and learning. And using LeapFrog’s Learning Path parents can follow their child’s development and progress online.
