List of contents
The year in brief 1
CEO’s comment 2
Mission and business concept 4
Goals 5
Strategy 8
Corporate culture and organization 10
IT 12
Competition and external factors 14 Clients 18 Services 20
Sweden 24
Norway 27
Denmark 29
Finland 30
Germany 31
Luxembourg 32
Other business 33
Employees 34
Board of directors 40 Corporate governance 42
The share 46
Contents, Directors’
report and accounts 48 Directors’ report 49 Accounts 54 Notes 63 Five-year review 88
Key ratios 89
Proposed profi t distribution 91
Audit report 92
Defi nitions 93
Addresses 94 Awards and honours 96
Guidelines for readers
Nordnet is a Swedish limited company that is subject to Swedish law. All values are expressed in Swedish kronor. One million Swedish kronor is abbreviated to MSEK.
Figures in brackets relate to 2005, except where otherwise stated. Data on markets and the competitive situation are based on Nordnet’s own assessments, except where a specifi c source is named. These estimates are based on the best and most recently available facts from published sources in the fi nance industry and from competitors. The fi nancial reports that have been audited are presented on pages 48-91.
More information and news on
We are
that are revolutionizing
savings Free
your savings
NORDNET ANNUAL REPORT 2006
the challengers
2006
Text, graphic design and production: Hallvarsson & Halvarsson Photo: Christoffer Edling
Illustrations: Niklas Elmehed, Nordnet and Klas Fahlén Photoretusch: Bildrepro Stockholm
Translation: Semantix Printed by: Elanders, 2007 Calendar
Activity Date
Annual General Meeting 24 April 2007
Interim report January–March 2007 24 April 2007 Interim report January–June 2007 18 July 2007 Interim report January–September 2007 24 October 2007 End-of-year fi nancial report 2007 February 2008
The largest equity broker in the Nordic region
The percentages refer to Nordnet’s market share of the number of trades done in 2006 on the main exchange of each country.
Nordnet – shares, mutual funds and pensions
Nordnet offers
user-friendly and cost-effi cient services to private investors and companies investing in shares, mutual funds, and pensions. Nordnet is the largest private broker in the Nordic region with some 150,000 account holders in Swe- den, Norway, Denmark, Finland, Germany, and Luxembourg.
Mission
We are the challenger that is revolutionizing savings.
Business concept
Through innovation and service, improve and simplify private savings in shares, mutual funds, and pension plans by offering freedom of choice and availability on the best possible terms.
Strategy
Nordnet’s strategy to reach its goals concerning satisfi ed clients, growth, and fi nancial development is to:
Improve and simplify things for clients
Our ambition to improve and simplify things for our clients can be summarized in four main points:
Freedom of choice
Availability
Innovation and creative thinking
Best possible terms.
Operate in a cost-effi cient manner
We base our operations on the Nordnet Model, which means business is concentrated in Stockholm in a single organi- zation and infrastructure while operating on the markets in Sweden, Norway, Denmark, Finland, Germany, and
Luxembourg. The Nordnet Model is designed to make it relatively easy to add new clients, services, and markets at low cost. The cost-effi cient structure gives us a unique ability to compete on services, client benefi ts, and prices.
Create growth in several dimensions
Our strategy is to create growth in several different ways:
More clients and larger volumes in existing services
New services on existing markets
Geographic expansion into new markets
Innovative new services.
The growth pyramid
Naturally, you can’t
pull off a revolution without innovation.
We always ask ourselves whether things can be done dif- ferently and better. We aim to constantly make things easier, smarter, and cheaper.
For the client’s best!
Innovation
New markets
New services
New services
Larger volumes in existing services 149,500
accounts
A day at Nordnet
134 new accounts are opened
45,815 clients log on
41,358 trades in shares and derivatives are made on the stock exchanges in Sweden, Norway,
Denmark, Finland, Germany, USA and Canada
3,948 visits are made to the Mutual fund supermarket
810 calls are answered in Swedish, Norwegian, Danish, Finnish, and German
786 e-mails from Swedish, Norwegian, Danish, Finnish, and German clients are answered
6,301 SMS are sent out
3,622 news articles from 12 news sources are published
55,810,137 web enquiries are received.
Nordnet’s fi nancials by geographic market
Sweden Norway Denmark Finland Germany Luxembourg Total
Share of income, 2006
51.7%
SEK 341.9 million
28.9%
SEK 191.2 million
12.5%
SEK 82.4 million
0.8%
SEK 5.6 million
2.7%
SEK 18.1 million
3.3%
SEK 21.8 million
SEK 661.1
million
Share of operating profi t, 2006 51.5%
SEK 150.4 million
34.9%
SEK 102.0 million
16.2%
SEK 47.2 million
Neg.
SEK -6.3 million
Neg.
SEK -15.7 million
5.0%
SEK 14.5 million
SEK 292.1
million
Sweden Norway Denmark Finland Germany Luxembourg Total
Share of trades, 2006
42.5%
3,403,000
28.1%
2,248,000
14.4%
1,153,000
3.1%
247,000
10.4%
835,000
1.5%
117,000
8,003,000
trades
Share of active ac- counts, Dec. 31, 2006
67.1%
100,200
19.7%
29,400
6.3%
9,400
1.2%
1,800
4.5%
6,800
1.2%
1,900
149,500
accounts
Share of assets in custody, Dec. 31, 2006
64.8%
SEK 32,000 million
16.4%
SEK 8,100 million
9.5%
SEK 4,700 million
1.0%
SEK 500 million
2.3%
SEK 1,100 million
6.1%
SEK 3,000 million
SEK 49,400
million
Nordnet’s operations by geographic market
13.0% 6.9%
1.4%
0.6%
7.0%
Text, graphic design and production: Hallvarsson & Halvarsson Photo: Christoffer Edling
Illustrations: Niklas Elmehed, Nordnet and Klas Fahlén Photoretusch: Bildrepro Stockholm
Translation: Semantix Printed by: Elanders, 2007 Calendar
Activity Date
Annual General Meeting 24 April 2007
Interim report January–March 2007 24 April 2007 Interim report January–June 2007 18 July 2007 Interim report January–September 2007 24 October 2007 End-of-year fi nancial report 2007 February 2008
The largest equity broker in the Nordic region
The percentages refer to Nordnet’s market share of the number of trades done in 2006 on the main exchange of each country.
Nordnet – shares, mutual funds and pensions
Nordnet offers
user-friendly and cost-effi cient services to private investors and companies investing in shares, mutual funds, and pensions. Nordnet is the largest private broker in the Nordic region with some 150,000 account holders in Swe- den, Norway, Denmark, Finland, Germany, and Luxembourg.
Mission
We are the challenger that is revolutionizing savings.
Business concept
Through innovation and service, improve and simplify private savings in shares, mutual funds, and pension plans by offering freedom of choice and availability on the best possible terms.
Strategy
Nordnet’s strategy to reach its goals concerning satisfi ed clients, growth, and fi nancial development is to:
Improve and simplify things for clients
Our ambition to improve and simplify things for our clients can be summarized in four main points:
Freedom of choice
Availability
Innovation and creative thinking
Best possible terms.
Operate in a cost-effi cient manner
We base our operations on the Nordnet Model, which means business is concentrated in Stockholm in a single organi- zation and infrastructure while operating on the markets in Sweden, Norway, Denmark, Finland, Germany, and
Luxembourg. The Nordnet Model is designed to make it relatively easy to add new clients, services, and markets at low cost. The cost-effi cient structure gives us a unique ability to compete on services, client benefi ts, and prices.
Create growth in several dimensions
Our strategy is to create growth in several different ways:
More clients and larger volumes in existing services
New services on existing markets
Geographic expansion into new markets
Innovative new services.
The growth pyramid
Naturally, you can’t
pull off a revolution without innovation.
We always ask ourselves whether things can be done dif- ferently and better. We aim to constantly make things easier, smarter, and cheaper.
For the client’s best!
Innovation
New markets
New services
New services
Larger volumes in existing services 149,500
accounts
A day at Nordnet
134 new accounts are opened
45,815 clients log on
41,358 trades in shares and derivatives are made on the stock exchanges in Sweden, Norway,
Denmark, Finland, Germany, USA and Canada
3,948 visits are made to the Mutual fund supermarket
810 calls are answered in Swedish, Norwegian, Danish, Finnish, and German
786 e-mails from Swedish, Norwegian, Danish, Finnish, and German clients are answered
6,301 SMS are sent out
3,622 news articles from 12 news sources are published
55,810,137 web enquiries are received.
Nordnet’s fi nancials by geographic market
Sweden Norway Denmark Finland Germany Luxembourg Total
Share of income, 2006
51.7%
SEK 341.9 million
28.9%
SEK 191.2 million
12.5%
SEK 82.4 million
0.8%
SEK 5.6 million
2.7%
SEK 18.1 million
3.3%
SEK 21.8 million
SEK 661.1
million
Share of operating profi t, 2006 51.5%
SEK 150.4 million
34.9%
SEK 102.0 million
16.2%
SEK 47.2 million
Neg.
SEK -6.3 million
Neg.
SEK -15.7 million
5.0%
SEK 14.5 million
SEK 292.1
million
Sweden Norway Denmark Finland Germany Luxembourg Total
Share of trades, 2006
42.5%
3,403,000
28.1%
2,248,000
14.4%
1,153,000
3.1%
247,000
10.4%
835,000
1.5%
117,000
8,003,000
trades
Share of active ac- counts, Dec. 31, 2006
67.1%
100,200
19.7%
29,400
6.3%
9,400
1.2%
1,800
4.5%
6,800
1.2%
1,900
149,500
accounts
Share of assets in custody, Dec. 31, 2006
64.8%
SEK 32,000 million
16.4%
SEK 8,100 million
9.5%
SEK 4,700 million
1.0%
SEK 500 million
2.3%
SEK 1,100 million
6.1%
SEK 3,000 million
SEK 49,400
million
Nordnet’s operations by geographic market
13.0% 6.9%
1.4%
0.6%
7.0%
The year in brief
The year in brief
Revenues increased by 52 per cent to SEK 661.1 (434.1) million
Operating profi t increased by 46 per cent to SEK 292.1 (200.1) million
Profi t after tax increased by 42 per cent to SEK 206.7 (145.7) million
Earnings per share increased by 42 per cent to SEK 1.25 (0.88).
Summary income statements and ratios
2006 2005 Change
Revenues, MSEK 661.1 434.1 52%
Operating profi t, MSEK 292.1 200.1 46%
Operating margin, % 44 46
Profi t after tax, MSEK 206.7 145.7 42%
Profi t margin, % 31 34
Earnings per share, SEK 1.25 0.88 42%
Equity, MSEK 691.4 514.4 34%
Equity per share, SEK 4.19 3.12 34%
Capital adequacy ratio, % 10.3 10.9
Number of active accounts 149,500 117,300 27%
Assets in custody, SEK billion 49.4 36.3 36%
Deposits, SEK billion 5.9 4.1 40%
Lending and margin lending, SEK billion 3.3 2.6 27%
Number of trades Number of employees
8,003,000 238
5,641,000 164
42%
45%
Revenues Operating profi t Active accounts Assets in custody
Awards and honours
2004 2005 2006 MSEK
661.1
280.5 434.1
0 100 200 300 400 500 600 700 800
2004 2005 2006 MSEK
292.1
107.4 200.1
0 50 100 150 200 250 300
2004 2005 2006 MSEK
149,500
101,400 117,300
0 30,000 60,000 90,000 120,000 150,000
2004 2005 2006 MSEK
49,400
20,900 36,300
0 10,000 20,000 30,000 40,000 50,000
Nordnet received several awards and honours
Strong growth in shares, mutual funds and pensions:
The number of active accounts increased by 27 per cent to 149,500
Total assets in custody increased by 36 per cent to SEK 49.4 billion
Number of trades increased by 42 per cent to 8,003,000
Assets in custody in mutual funds increased by 46 per cent to SEK 5.2 billion
Assets in custody in Nordnet Pension increased
by 200 per cent to SEK 3.6 billion.
CEO’s comment
Dear Shareholder,
of being honest, dedicated, unconventional and considerate, in an absolutely fantastic way.
Will we sit back and blow our own trumpet
now when business is going so well? No, we will always be an extraordinarily com- mitted challenger. One of our greatest challenges is to adapt, change and develop ourselves, as we have grown into a larger company that need a more structured way of working. Parallel to this, we must safeguard and strengthen our entrepreneurial spirit and innovative thinking. Nordnet is a value-steered growth company and we grew by 45 per cent in 2006 as regards the number of employees. It’s important that new Nordnet employ- ees are quickly assimilated into our corporate culture, so that we can move in the same direction together, in unison. We worked hard during the year with our corporate values, management training and developing our organization, and will continue to
Once again I’m writing my commentafter another exceptionally
good year: 27 per cent more accounts, assets in custody increased by 36 per cent, our best result ever, extremely satisfi ed clients, the Bank of the Year award in Sweden, great success in pensions and strong international growth. And we will keep our growth goal of at least 25 per cent more accounts per year in the years to come. This means that our goal is to double our client base through organic growth over the next three years. We offer maximum freedom in investment choices, leading online services and the best possible terms, so your savings will be able to develop as well as possible.
A winning combination in our opinion and many investors seem to agree.
What could be more fun and stimulating than
steering Nordnet
along the highway of success at full speed? Nothing. We have my
colleagues to thank for our success. They truly live by our values
CEO’s comment
‘‘ The revolution continues!
Free your savings!
do so in 2007. Although, I haven’t worked at IKEA and have no detailed insight into its business, I usually refer to this company as an example of what we are in the process of creating – with the difference that we work with savings. An international growth company with an institutionalized entrepreneurial spirit where innovation, freedom of choice, continual improvements and simplifi cations are the best possible ingredients in a recipe for success.
We take increasingly more responsibility for our clients
and their savings. When we offer freedom of choice, we shall also help our clients make use of the opportunity. Otherwise this freedom of choice can be seen by some as complicated and daunting. The best example of our increasing responsibility is the NordnetSchool and its success. The demand for investment knowledge and how to use our services for shares, mutual funds and pensions is greater than we ever imagined. Last year our Oslo offi ce arranged 75 courses attended by 2,000 participants. In Sweden we launched the NordnetSchool toward the end of the year and have already had to increase the number of courses.
We have an exceptional growth potential right
around the corner.
Given that our product offering is complete only in Sweden, with services in shares as well as in mutual funds and pensions. In the coming years we’ll launch mutual funds and pension products on several of our existing markets. Our development in Norway has been remarkable, but the potential is even greater and that’s why we’re starting there. Next in line is Denmark, where we’ve also had good development and where pensions are of particular interest.
In Finland things are looking very exciting and at the end of the year growth really took off. In the Finnish market it’s important that we fi rst add mutual funds alongside shares. In Germany we’ll introduce trading on the Eurex derivative exchange toward the end of 2007. This and other improvements in our product offering are important for increasing growth in Germany. We’ll also aim at establishing operations in one or more markets in Eastern Europe.
There are many issues to solve if our strategy is to be applied there, but my hope is to have launched our services in one Eastern European market by mid-2008.
2006 was a year of major investments
in personnel, expanded infrastructure and marketing. In 2007 we’ll continue to add to our team, but at a slower rate. Marketing will remain at the same or a
slightly higher level. Our marketing efforts are very benefi cial in a good market, while it’s also important to increase knowledge of our brand as we expand our product offering with mutual funds and pensions. In 2006, our brand-recognition increased signifi - cantly in Sweden.
I usually comment on cuts in prices and margins.
This is an im- portant topic, so I’ll mention it here too. In share trading, it’s clear that price cuts will continue as regards the actual execution of a share trade. The overall picture, however, is a little more complex.
If commissions continue to drop, it may lead to account, infor- mation and other services – which are currently partly funded indirectly through commissions – being charged directly. This trend can already be seen among some market players. Within mutual funds and pensions, I see no cuts in margins in relation to current levels as things stand.
“First with the latest”
is as appropriate today as it was ten years ago when as a newly started challenger we used it in our market- ing. In 2006 we were showered with awards and honours. In Norway, Denmark and Germany we were named the best and least expensive in various contexts. In Sweden we made the grand slam with two of the most prestigious awards. We were named Bank of the Year by the Swedish fi nance magazine, Privata Affärer, and Sweden’s best website in the Banking & Finance category by the Swedish magazine Internetworld. In Denmark Nordnet was named Bank/Broker of the Year 2007. Naturally, these awards are of great encouragement to us. But despite all the praise, in 2007 we’ll launch a completely new website. However, in order to be Bank of the Year, a good website is not enough. We must also pro- vide the best service offering on the best terms. We conducted a client survey just before the end of the year and found that 95 per cent of our clients are satisfi ed. But we won’t be content with this.
In 2007 we’ll launch a number of new services to further improve and simplify our clients’ investment activities. And of course this will increase our growth potential. Among other things, we’ll take the step towards being a full service bank on the Internet in 2007 by launching several new banking services in Sweden, such as the possibility to pay bills, transfer funds and receive salaries via Nordnet. Everything connected to the Nordnet account, of course.
Free your savings! Start saving with us.
Klas Danielsson, CEO
revolutionizing pension savings when we launched an individual pension savings, IPS, with the best terms on the market. Since then we’ve launched a complete offering of pension products with revolutionary possibilities and conditions.
Improving and simplifying
things for our clients is our business. If we succeed in this, client satisfaction increases, which attracts even more clients. So it creates growth. And many satisfi ed clients pave the way for good fi nancial results. So it creates profi tability – on the condition that we run our business in a cost-effi cient manner.
A decade of revolution
Nordnet’s savings revolution began ten years ago. Here are a few examples of how savings has been made easier, smarter and cheaper.
Mission and business concept
We revolutionize savings
At Nordnet, we have a lodestar for everything we do – our mission:
We are the challenger that is revolutionizing savings.
Naturally, you can’t pull off a revolution without innovation. We always ask ourselves whether things could be done differently and better. We aim to constantly make things easier, smarter and cheaper. For the client’s best.
Another key concept is freedom of choice. This is often lacking in the fi nancial market, where many players prefer to sell their own products with high margins. For us, objectivity is important.
For the client’s best.
The way in which we carry out our revolution is summarized in our business concept:
Through innovation and service, improve and simplify private savings in shares, mutual funds and pension plans by offering freedom of choice and availability on the best possible terms.
Our driving force is the desire to continually improve and simplify matters for our clients. We help private investors improve their fi nances by offering lower fees, better services and more freedom of choice. Quite simply, we make people richer.
We’ve been doing this for more than ten years and there’s no doubt as to whether we’ve created a revolution.
Until the mid-1990s, all share trading involved a middleman and this meant delays. The client had to submit an order to a bank or a broker and then wait to fi nd out when and at what price the deal went through. Administration was mostly manual, a very costly process for the client.
Then, the Internet and Nordnet arrived. Technical advance- ments suddenly made it possible to dramatically optimize the entire share trading process. The major banks and traditional sharebrokers, however, had little interest in improving services and cutting prices. A challenger was needed to get the revolution off the ground. Nordnet became that challenger.
And the revolutiongoes on.
There are always improvements to make and innovations to create. Nordnet has launched a long list of revolutionary share trading and fi nancial information services.
And this list will get longer. Our new area in savings to revolution- ize is pensions. In the past, pensions have been characterized by high fees and little choice. In 2004, we took the fi rst step in
‘‘ Revolution demands innovation.
Tjänstepension, an occupational pension offering the best terms on the market, is launched as well as a
Structured products supermarket.
Insurance and pension products are launched, such as Kapitalpension, with no insurance fees and full freedom of investment in shares and mutual funds, and Kapital- försäkring with the possibility to current withdrawals.
The fi rst step in revolutionizing pension savings is taken through the launch of Individuellt Pensionssparande (IPS, individual pension savings), offering the best terms on the market with a minimum commission of just SEK 39.
Aktiedirekt is launched with an extremely low minimum commission of SEK 9.
Nordnet Hedge – Sweden’s fi rst marketplace for hedge funds is launched.
WinTrade, a Windows-based trading application, is launched.
A short selling service is launched.
First online broker to offer trading in mutual funds in a mutual fund supermarket with no additional fees.
First online broker to offer real time trading in options and futures, and trading in American shares over the Internet.
First online broker to launch an application with real time share prices.
One of the fi rst brokers in the Nordic region to offer trading over the Internet.
2006
2005
2004
2003
2002
2001
2000 1999
1998
1997
1996
Satisfi ed clients become our ambassadors
Nordnet’s goals
are split into three categories:
clients, growth and fi nancial development.
1. Client focus
Satisfi ed clients become ambassadors
Satisfi ed clients are a must for growth and success.
They confi rm that we are doing things right while creating ambassadors – clients who recommend Nordnet. This is why we have very strict goals regarding clients and conduct an annual survey on client opinions of Nordnet.
In November 2006, 8,988 Nordnet clients com- pleted a web survey aimed at our web service users.
Users of the WinTrade trading application only participated in the survey to a very limited extent.
The charts in the margin show the survey results.
By 2008, 90 per cent of those using our web service shall be satisfi ed or very satisfi ed Nordnet clients (rated 4 or better).
In 2006, 82 per cent rated Nordnet four or more.
95 per cent rated us three or better.
By 2008, 90 per cent of clients using our web service shall gladly recommend Nordnet.
In the 2006 survey, 86 per cent said they would recommend Nordnet. 11 per cent responded Don’t know, a common response from new clients yet to form a defi nite opinion. Only 3 per cent answered No. This means that of the clients responding Yes or No, 96 per cent would recommend Nordnet.
At Nordnet, good service means
, for example, easy- to-use and readily available services and the more traditional friendly and helpful reception in areas such as client calls, e-mail and general administra- tive routines.
The goal is for 90 per cent of clients to rate Nord- net’s service four or better by 2008.
In 2006, 88 per cent of clients rated Nordnet three or better and 70 per cent four or better. The best result was achieved in Denmark, where 83 per cent of clients rated us four or better.
The goal for Client Services is for 95 per cent of all incoming calls to be answered within 90 seconds by 2007.
In 2006, 92 per cent of the calls were answered within three minutes. During the second half of 2006, 95 per cent of all incoming calls were answered within two and a half minutes.
During Client Services opening hours, 95 per cent of enquiries received by Nordnet’s mes- sage center and by mail shall be answered within 30 minutes. 95 per cent of mail and messages received during the night and on the weekend shall be answered by nine in the morning the next business day.
Web survey results How satisfi ed are you, generally speaking, with being a client of Nordnet?
Would you recommend Nordnet to a friend or acquaintance?
When you contact Nordnet, do you get excellent service?
Our Head of research, Peter Malmqvist, held many presentations throughout the year, all well appreciated by our clients.
Goals
‘‘ 95 per cent rated three or better.
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1. Yes 86%
2. No 3%
3. Don’t know 11%
2 3 1
5. 32%
4. 38%
3. 18%
2. 8%
1. 4%
Standard of service on scale of one to five 1=worst
5=best 2 1 3
4 5
2. Growth
Account growth
The goal is to achieve organic growth of at least 25 per cent in the number of accounts in 2007.
In 2006, organic growth totaled 27 per cent, compared to the goal of 25 per cent.
New savings
The goal for new savings in assets in custody, from new and existing account clients, is to amount to at least account growth, that is the minimum of 25 per cent for 2007.
In 2006, new savings amounted to about 16.5 per cent, compared to the goal of 25 per cent.
Market shares
The goal is to see a long-term increase in Nordnet’s market share of all trades (considering private trade) on the exchanges of which Nordnet is a member. Nordnet will achieve this by gaining an increasing share of private investors’ trade in shares, warrants, options and futures, through organic growth and acquisitions.
In 2006, Nordnet’s market shares generally exhibited a positive trend and in the Nordic region Nordnet had the highest total market share of all brokers measured in number of trades, includ- ing those with instiutional clients. See page 15 for more informa- tion on market shares.
Nordnet’s market share of the number of trades, %
3. Financial development
Capital adequacy
Capital adequacy is the ratio between the capital base (simply put, equity less intangible assets) and risk-weighted assets (simply put, mainly lending classifi ed into various risk classes and counter- party risks).
The goal is for the Group and the bank’s capital adequacy to not drop below 10.0 per cent.
At the end of 2006, capital adequacy stood at 10.3 per cent. In conjunction with the new capital adequacy regulations applica- ble as of February 1, 2007, this goal may be revised. For more information on the new capital adequacy regulations, see page 51 of the Directors’ report.
Solvency ratio
Subsidiary Nordnet Pensionförsäkring AB’s solvency ratio is the ratio between equity less intangible assets and policyholders’
(clients’) assets.
The goal is for the solvency ratio to always exceed 1.00 by a good margin.
At the end of last year, it was 1.76. The statutory requirement is a minimum of 1.00.
Operating costs
The operating costs, excluding direct sales and marketing costs, are estimated to increase by 25 per cent in 2007.
In 2006, operating costs amounted to SEK 279.6 million, com- pared to the goal of SEK 250–270 million. This is equavalent to SEK 23.3 million in operating costs excluding marketing costs per month.
Acquisition cost per new net account
The goal is for the average acquisition cost per new net account to not exceed SEK 2,500 in direct sales and marketing costs in 2007.
In 2006, the average acquisition cost per account was SEK 2,800, compared to the goal SEK 2,000.
Goals
‘‘ Largest in the Nordic region.
0 3 6 9 12 15
Stockholm Stock Exchange
Oslo Stock Exchange
Copenhagen Stock Exchange
Helsinki Stock Exchange
Xetra (Germany)
%
2004 2005 2006
6.9 8.6
13.913.0
8.4
6.47.0
4.0
1.4 0.6
0.7 0.10.3 8.8
Cost coverage
Cost coverage is the share of total operating costs that are covered by non-direct transaction-related commission income.
The goal for 2007 is a cost coverage ratio of 70–75 per cent.
Increased marketing costs have a negative effect on cost cover- age. The long-term goal is to achieve a cost coverage of 100 per cent.
In 2006, cost coverage was 74 per cent, compared to the goal of 70–75 per cent. Excluding marketing costs, the cost coverage was 97 per cent.
Quarterly breakeven analysis per month
Goals
Cost coverage ratio per year
Operating income excluding transaction-related income in relation to operating costs.
Lennart is representing Nordnet at a Share trading fair in Stockholm.
Breakeven
Breakeven is the number of registered trades required to generate enough commission income to cover the
remaining operating costs after cost coverage from other income.
Expressed as the number of trades per trading day, breakeven for 2007 will be between 4,000 and 8,000.
As the long-term cost coverage goal is 100 per cent, the long-term breakeven goal is zero trades per day.
In 2006, breakeven was 7,800 trades per trading day, compared to the estimated breakeven between 4,000–8,000.
Q1 06 Q2 06 Q3 06 Q4 06 Q1 05 Q2 05 Q3 05 Q4 05
Costs, MSEK 28.7 30.1 29.2 36.2 18.5 19.5 19.7 22.9 Operating income excluding transaction
commission income, MSEK 21.6 23.3 21.5 25.6 12.4 13.2 14.7 17.6
Cost coverage ratio, % 75 77 74 71 67 68 74 77
Transaction commission income
required for breakeven, MSEK 7.1 6.8 7.7 10.6 6.1 6.3 5.0 5.3
Net income per trade, SEK 50 49 46 47 43 44 49 48
Number of trades per day for breakeven 6,600 6,600 7,700 10,600 6,900 6,700 4,700 5,200 Number of trades done per day
33,700 34,200 24,700 31,600 19,900 19,100 23,500 25,900 72 74
71
2004 2005 2006
%
0 20 40 60 80 100
Finally, we offer all this on the best possible terms.
We can do this because we run a very cost-effi cient business. Our terms are also important for other reasons. Such as the fact that we never employ conditions that bind clients to us or otherwise restrict their fl exibility.
Create growth
The technical development, in combination with the harsh com- petition, continue to cut prices and reduce margins. This makes it increasingly important to increase transaction volumes to com- pensate for decreasing margins on transactions. Parallel to this, it’s becoming increasingly diffi cult for clients to differentiate between different players’ services. This increases the need to stick out from the crowd and innovation becomes vital to future success.
Nordnet’s strategy
is to create growth in several different ways, as illustrated by the growth pyramid shown above. Our growth has four dimensions:
More clients and larger volumes in existing services, wich, among other things, refers to the current growth. We also create volumes through cooperation with partners such as investment management companies and fi nancial advisors.
By gradually introducing more of our services on our existing geographic markets. One example is mutual funds and pen- sions, which are being launched in the other Nordic countries during 2007.
By entering completely new geographic markets. We aim at es- tablishing operations in one or more markets in Eastern Europe during the next few years.
Innovation. We work hard to continue profi ling Nordnet as the most innovative player in the industry – as the player who con- stantly creates new value-added for the client. The launch of our new web service in 2007 will be a good example of innovation.
The growth pyramid
Strategy
In order to reach our goals,
we apply a three-pronged strategy:
to improve and simplify things for clients
to create growth in several dimensions
to operate in a cost-effi cient manner.
Improve and simplify
To improve and simplify things for our clients is the natural linchpin of our strategy. If we succeed in this, client satisfaction increases all the more, which in turn helps increase client numbers. And many satisfi ed clients pave the way for good fi nancial results. In other words, the three areas into which we have divided our goals on the previous pages: clients, growth and fi nancial development.
Our ambition to improve and simplify things for our clients can be summarized in four main points.
The fi rst is freedom of choice.
We offer our investors as wide a choice as possible of the shares, mutual funds and pensions avail- able on the market. True freedom of choice requires independ- ence, that is, we must refrain from producing inhouse products such as mutual funds and fund management services. Instead, we are objective. We are brokers who mediate, improve and package what the market offers in the most attractive way possible.
We consider the opportunity to develop a savings portfolio without referrals to the broker’s proprietary products to be in the client’s best interest. This is where we stick out from most other players in the market, including some of our direct competitors which, in addition to acting as online brokers, have also begun producing inhouse products.
Availability is
the second main point. We have a technical and administrative system that is fast, reliable and easy to use. Trad- ing takes place in real time with no middlemen. And Nordnet can be contacted in several ways.
Innovation and fresh approaches are essential
when creating something to improve and simplify. We continually strive to further improve our services. Innovative services enable clients to truly benefi t from the wide choice.
Improvement and simplifi cation – a natural strategy
‘‘ The Nordnet Model is cost-effi cient.
Innovation
New markets
New services
New services
Larger volumes in existing services 149,500
accounts
Share of trades made by clients outside Sweden
Cost-effi ciency
In order for client satisfaction and growth to lead to good fi nancial results, we must also run our business in a cost-effi cient manner.
This is achieved with the Nordnet Model, which means business is concentrated in Stockholm while we operate in markets in Sweden, Norway, Denmark, Finland, Germany and Luxembourg.
Clients meet Nordnet locally on their computer screens.
The system is designed to make it easy to add new clients,
services and markets. As a result, we can expand our client base, broaden our service offering and increase the number of geo- graphic markets at low costs. The model is also very well suited to rapid international expansion. We can begin operating in a new country without the need to acquire local offi ces or recruit personnel.
As the Nordnet Model facilitates entering new markets, it also helps spread risks in the Group. Nordnet has extensive operations in several countries, leaving us well equipped to survive fi erce competition in any one of these markets for some time.
Economies of scale and cost-effi ciency
are deciding factors.
Nordnet’s cost-effi cient structure gives us a unique ability to com- pete on services, client benefi ts and prices. There are countless companies that talk about the EU as a single market. Nordnet is on the way to realizing that vision.
Size also means that we have resources to develop and improve a broad service offering. In the long run, local players will fi nd it diffi cult to make the necessary investments.
The Nordnet Model is unique when compared to our competi- tors, which to varying degrees operate through autonomous units in each country or tend to focus on a single market.
Strategy
The Nordnet Model
i i i i
www Nordnet Sweden
Nordnet Norway
Nordnet Denmark
Nordnet Finland
Nordnet Germany
Nordnet
Luxembourg Aktiedirekt Partners
www www www www www www www
Mutual fund companies
Administration Infrastructure Development Operations
Stock exchanges Information providers Clearing centres
56 57 38
2004 2005 2006
%
0 20 40 60 80 100
Corporate culture and organization
Four core values, one corporate culture
Corporate culture
Nordnet’s lodestar is to be the challenger that revolutionizes sav- ings. Together with our business concept this lodestar has created our corporate culture. The corporate culture is how we work and function in the best way. It is vital to future success.
Our corporate culture can be described as the common values and behaviors of our employees. It’s the sum of the lifetime expe- riences of our organization. It’s a shared history that determines what’s acceptable and what’s not, what will lead to success and what will lead to failure.
Nordnet’s corporate culture
is described by four core values and what they mean to us.
We are:
Honest.
We say things as they are and that’s okay
We are humble
We are frank and clear
We have high moral and ethical standards
We only promise what we can deliver.
Dedicated.
We get things done and take responsibility, from start to fi nish
We seek information and knowledge
We have a broad perspective and see the whole
We do that little extra.
Unconventional.
We seek better solutions
We dare to try; nothing is impossible
We do what others think is impossible
We are fast on our feet
We like change.
Considerate.
We care and show respect
We learn from each other
We succeed together
We have respect for money
We are open and happy to share
We help out.
A strong corporate culture
is a characteristic of a successful company. This is why we highly value our corporate culture.
We strive to make it as clear as possible, as quickly as possible.
Rapid expansion, with many new recruits joining our company, makes this especially important. And we don’t expect new em- ployees to absorb a rooted culture all at once. The more we grow, the more important it becomes to have a clear corporate culture that as effectively as possible helps us work under our lodestar: to be the challenger that revolutionizes savings.
The four core values
are refl ected in everything we do. In our client offering. In our service. In our business development. In the recruitment of new employees. In management training. And in staff performance reviews.
Equally important is that our core values infl uence our contact with clients. In black and white, this means, for example, provid- ing the best possible prices and terms, acting independently and offering great freedom of choice. In our eyes, small clients are as important as big clients. We take every opportunity to ensure our clients are satisfi ed and shall always be able to meet them with honesty and pride. We continually improve and simplify our services.
Organization
Nordnet employs a matrix organization, with departmental responsibility working in tandem with process and functional responsibilities. Some examples:
The Client desk manager is responsible for all client service as well as replies to client enquiries, but also has a number of groups with subordinate personnel responsible for individual countries and services. If necessary, work is conducted across units.
The Sales managers for each country cooperate with each other and with process and function managers with no country affi liation.
Within IT, Nordnet uses a common platform and a common system for all countries and services.
At the end of 2006, the largest departments were IT and product development with 49 employees, back offi ce with 46 employees and the client desk with 38 employees. Other large departments are brokers, fi nance and accounting, marketing, credit and central administrative functions.
‘‘ Our corporate culture is
a key to success.
Corporate culture and organization
The IT and product development department
is responsible for development, projects and the operation and maintenance (O&M) of all Nordnet systems. These systems include the trading system, together with underlying systems and client web services and trading applications, as well as the administrative systems for trade processing, administration, communication and control.
System O&M, as well as the client side of service and application development, is handled internally. Some system components are purchased externally.
The Back offi ce
registers new clients and processes trades, as well as other orders and events, on client accounts. In addition to share trades, mutual fund trades, cash deposits and withdrawals, securi- ties transfers, settlement notes, debit card withdrawals, dividends, new share issues, foreign exchange and more having to be booked correctly and shown on each individual account, these events also have to be booked and reconciled with stock exchanges, clear- ing organizations, mutual fund companies and other banks and brokers.
The Client desk
consists of client service and technical support.
Telephone calls, communication via the message center and e- mail from all markets in local languages are handled by the Client desk. Enquiries can cover everything from simple questions about services and prices, through requests for detailed information about pension products to user training for the WinTrade trading application.
Organization chart
The Broker desk
is staffed by Nordnet’s licensed brokers. Clients without access to the Internet, mobile services or voice recogni- tion services can always call in their orders. Our brokers also deal with complicated combination orders that can’t be placed over the Internet. Nordnet has a large number of partners, including small brokerage fi rms, small independent banks, investment manage- ment companies, fi nancial advisors and insurance brokers. Our brokers assist these partners in various matters, such as in placing orders. Nordnet’s Private Banking clients and other highly active clients are offered a personal service by our brokers.
Rina welcomes a participant in the NordnetSchool.
Client services
IT Product
development
Broker desk Admin & finance Marketing
Back office, accounting, legal services
CEO
Information Human resources
Risk Luxembourg
Other activities
Sweden Norway Denmark Finland Germany Pension Partners
More trades on the Nordic exchanges than any other broker
IT
Nordnet’s IT systems are
very sophisticated. Due to the enor- mous amounts of fi nancial information continuously fl owing over the Internet between logged-in clients and Nordnet’s systems, demands on availability, speed, reliability and security are high.
Our clients can trade and save
in more than 250,000 different securities in seven markets. Ten stock exchanges are linked together for more than 149,500 clients (at the end of 2006).
The system must function 24 hours a day, 365 days a year with- out interruption and with a very high security level. Moreover, most user activity must be archived for many years.
The fact that Nordnet conducts more transactions
on the Nordic exchanges than any other broker means the demands on us are high. If anything goes wrong, not only do Nordnet and its clients suffer, the entire fi nancial system is also affected. Nordnet’s infra- structure must be the best available and contain the most reliable technical solutions. At the same time, we attach great importance to these solutions being easy to use for clients. Technology is best when it’s invisible.
Investments
In 2006, several major investments were initiated and conducted to further enhance IT system capacity and reliability. The reasons
for this are increasing trading volumes and Nordnet mediating increasingly more information from increasingly more markets and other sources to increasingly more clients. This requires a substantial margin for extreme loads. We are widening the motorway and reduce the risk of traffi c jams. In addition, the fl ex- ibility to meet future needs increases.
Last year also saw regular investments in the shape of internal and external software and systems development, upgrades and optimizations, and replacement of components with new, improved technology. In 2006, investments in software, development, licenses and hardware totaled approximately SEK 70 million.
Availability
Availability is one of the most important characteristics of Nordnet’s IT system. This means the system must function without interruption, operate fast, handle large quantities of information and have backup facilities to ensure clients are not affected if problems arise.
‘‘ Technology is best when it’s invisible.
Johan tests a new functionality in WinTrade, a real-time trading application with, among other things, information from seven markets and news from twelve news agencies.
compared to employing external consultants. As the entire securities transaction process is part of our core operations, com- plete control over the entire chain is required in order to achieve the lowest possible marginal costs. This control provides us with a high degree of fl exibility and enables us to more rapidly develop and launch new services. Moreover, and equally important, we ourselves are closest to our clients and have the greatest opportu- nities to ensure that development is in their best interest.
With our own in-house
development, we retain control over inter- nal processes and can better understand them, which is important if we are to quickly resolve any problems that arise. Further, this way is cheaper, at least as long as our in-house development de- partment is working at capacity, and that’s a certainty at Nordnet.
Last, but not least, in-house development leads to greater innova- tion, which makes it easier for us to expand and create.
Our development department is home to broad expertise covering, for example, design, security, networks, databases and programming. Productivity is high.
IT
Sometimes things go wrong.
It’s unavoidable. That’s why we attach much importance to the immediate availability of an alternative in such situations, another subsystem to switch to, additional hardware and other components to quickly take over, without our clients’ notice.
An important factor
in reducing the risk of interruption is our position as our own Internet provider. That is, we have the same status on the Internet as other Internet provides (such as Telia).
This means we avoid the risk of being affected by problems expe- rienced by an external Internet provider.
Security
Security is of central importance to an Internet-based player. Dur- ing the year we started an upgrade of our security from an already extremely high level. Simply put, we have drawn even clearer security lines between different parts of our system.
Continual security improvements are a necessity; in part as we grow and add new services, in part as outside threats multiply and take new forms.
In-house development
Essentially, all IT development is conducted by Nordnet’s in- house development department. This provides many advantages
‘‘ Full control over the entire process.
“I compared prices and found Nordnet to be the cheapest alternative.”
Niels Haack Josefsen, Denmark
“I got curious about the NordnetSchool when I saw an advert on the Oslo Stock Exchange website. I was impressed by the evening course I attended in Oslo and ended up becoming a Nordnet client. The friendly reception in my contact with Nordnet also contributed.”
Hávard Evensen, Norway
“I wanted an account with good service and low commission. I used another broker before, but they didn’t meet my requirements. At Nordnet I get exactly what I want – low commission, good availability and very good service.”
Mats Lundberg, Sweden
“I began trading actively in about 2000. I used to be a client at a traditional bank, but changed to Nordnet because of the broader of- fering, favorable prices and well-functioning trading service. I’m very pleased with the functionality and versatility of the service.”
Matti Kannasoja, Finland Why did you choose Nordnet?
“Nordnet has a very user- friendly website that’s both simple and fl exible to use.”
Mette Hansgaard, Denmark
Competition and external factors
Stiffer competition raises demands on innovation
In the fi rst instance,
our growth and profi tability is affected by how well we succeed in improving and simplifying things for clients while remaining cost-effi cient. However, our growth is also affected by other factors over which we have more limited infl u- ence. The most important of these is what our competitors do.
Competition
A long-term general trend within fi nancial services is decreasing income per trade. This is related to technical developments mak- ing it possible to conduct securities trading at lower costs and the increasing numbers of players adopting this new technology. So the competition is stiffening. This leads to increasing demands on innovation, to create services with clear client benefi ts.
Shares
Within share trading, Nordnet competes with a number of online brokers, as well as with major banks and specialist banks offering securities trading over the Internet. Most competitors mainly focus on a single country. Nordnet has the broadest coverage of the Nordic region.
Measured in number of trades, in 2006 Nordnet was the larg- est stockbroker in the Nordic stock market (Stockholm, Oslo, Copenhagen and Helsinki), with a market share of 7.1 per cent.
Based on this strong position, the current trend toward increased interest in cross-border share trading in the Nordic countries is very interesting. A central component of this trend is the common Nordic List that OMX introduced on October 2, 2006. Our assessment is that interest in Nordic investments will increase, partly due to increased media coverage, which ought to favor Nordnet more than any of our competitors.
Specialist online brokers
in the Nordic region include Avanza and E*trade in Sweden, NetFonds in Norway, E*trade in Denmark, eQ Online and E*trade in Finland. E*trade, a subsidiary of the American bank and online brokerage group of the same name, is represented in several countries, but operates through offi ces in Stockholm and Copenhagen.
Nordnet has strong market positions
in Sweden, Norway and Denmark. In Finland and Germany, operations are still under establishment and market shares are lower.
Nordnet’s most important competitive advantages are our broader and more advanced service offering, the high availability of our trading system, our lead in the development of new services and our highly competitive terms. In some markets, Nordnet uses price as a strong means of competition.
On the Stockholm Stock Exchange,
Nordnet was the fourth largest broker in 2006, with a market share of 6.9 per cent of the total number of trades. In Oslo, Nordnet was the largest broker, with a market share of 13 per cent of the total number of trades. In Copenhagen, Nordnet was by far the largest online broker and the third largest among all brokers, with a market share of 7 per cent. In Finland, our market share was 1.4 per cent. In Germany, Nordnet is a small player with a market share of some 0.6 per cent on Xetra, the largest exchange in Germany.
Extremely competitive pricing continues.
The toughest competi- tion is found in Denmark, where we have almost seen a price war.
During the fall, one player even went so far as to market ‘free’ trad- ing. The terms of this offer, however, did include reservations.
‘‘ Nordnet is the largest broker in the Nordic stock market.
Online brokers’ market share Number of trades
Volume
Source: Offi cial statistics from each exchange compiled by Nordnet.
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2006
2004 2005
Stockholm Stock Exchange Oslo Stock Exchange Copenhagen Stock Exchange Helsinki Stock Exchange
%
0 2 4 6 8 10 12
Q4
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2006
2004 2005
0 10 20 30 40
50 Stockholm Stock Exchange Oslo Stock Exchange Copenhagen Stock Exchange Helsinki Stock Exchange
%
Competition and external factors
Price cuts were also seen in Sweden, but not to the same extent as in Denmark. In Finland, pricing continued to be a little less aggressive than in the other markets in 2006. In Germany, under- cutting gathered momentum. During the year, the average com- mission in the German market dropped by 7 per cent according to a report compiled by Broker Test. Contributing factors included relatively large price cuts by the major banks.
In recent years, the market shares
of the number of trades on the Nordic stock exchanges have been affected by the market shares of several international investment banks climbing relatively steeply. Nordnet’s assessment is that their increasing shares of trades mostly comprise the banks’ own trading and new and con- siderably sized volumes from, in general, the international market.
This means that despite strong growth for Nordnet and some other online brokers in the private client segment, the market share held by this segment may have dropped in recent years. The table list- ing the total market shares of the ten largest Nordic brokers clearly illustrates this trend.
Mutual funds
Competition is a little different in mutual funds trading. The main difference is that many players sell their own mutual funds, rather than broker the broader market offering. Nordnet provides clients with freedom of choice, offering some 800 mutual funds from more than 50 fund managers.
The market trend is for
more players to allow clients to choose between mutual funds from several different fund managers. This
creates more competition for Nordnet, but also increases the clients’ insight of the importance of freedom of choice.
Savings in mutual funds is very common in Sweden.
77 per cent of the Swedes save in mutual funds. Including the PPM savings as much as 94 per cent have savings in mutual funds. Measured as a share of total managed capital, the large Swedish banks still domi- nate, though their share is gradually decreasing and have fallen to 65 per cent. Instead, we are seeing an increase in the shares held by independent fund managers and international investment companies.
In the beginning of 2007, Nordnet is launching a mutual fund supermarket in Norway. In Finland, savings in mutual funds are growing fast, but from an initially low level. In Denmark, just about all mutual funds managed by Danish investment companies are listed on the stock exchange, which means trading takes place in the same way as with shares.
‘‘ We offer freedom of choice, control and low prices – in line with client wishes.
The fi ve largest brokers in 2006 by share of the number of trades
Stockholm Stock Exchange Oslo Stock Exchange Copenhagen Stock Exchange Helsinki Stock Exchange
Broker % Broker % Broker % Broker %
1. Avanza 9.27 Nordnet 12.95 Danske Bank 14.38 Nordea 8.19
2. SEB 8.33 DnB Nor 9.86 Nordea 9.02 Morgan Stanley 7.35
3. Handelsbanken 6.98 Morgan Stanley 5.75 Nordnet 7.00 eQ 6.35
4. Nordnet 6.91 Net Fonds 5.55 Sydbank 4.49 Deutsche Bank 6.33
5. Fischer Partners 6.90 Deutsche Bank 4.90 Jyske Bank 4.61 Lehman Brothers 6.06
Market shares in the Nordic region
Broker 2006, % 2005, %
1. Nordnet 7.08% 7.66%
2. SEB 5.70% 6.34%
3. Morgan Stanley 5.51% 4.18%
4. Nordea 5.34% 6.43%
5. Fischer Partners 5.03% 4.57%
6. Handelsbanken 4.55% 4.84%
7. Lehman Brothers 4.43% 2.90%
8. Deutsche Bank 4.22% 2.96%
9. Avanza 4.03% 4.23%
10. Danske Bank 3.40% 4.14%
The ten largest brokers in the Nordic region by number of trades on the Stockholm, Oslo, Helsinki and Copenhagen stock exchanges in 2006, together with fi gures for 2005.
Source: Offi cial statistics from each stock exchange, compiled by Nordnet.
Pensions
Within share trading, the traditional players have gradually adapted their prices to the revolution initiated by Nordnet and other online brokers, but there are still important differences in the services offered. A similar effect is yet to be seen in pensions.
In pensions, Nordnet competes primarily with traditional insur- ance companies, but also with a number of new players.
In competition with traditional insurance companies, Nordnet is well positioned since our client offering is considerably better in terms of fees, freedom of choice and client control.
Allow us to provide an example.
Eva is 35 and has 30 years before retirement. Her current monthly salary is SEK 35,000 kronor and her employer pays SEK 5,000 a month into her occupational pen- sion. If Eva’s pension is managed by one of the major traditional insurance companies, on retirement she will have paid SEK 294,104 in fees. If Eva instead chooses to transfer her pension sav- ings to Nordnet, these fees will not be paid and the SEK 294,104 will be included in her pension. This means that when Eva retires, she will receive some SEK 8,000 more a month over a fi ve-year period from her Nordnet pension. This is based on the assumption of an average return of fi ve per cent on Eva’s occupational pen- sion during the 30 years she has until retirement.
Other external factors
Aside from the competition, there are a number of other external factors that infl uence our growth and profi tability. A few of the most important follow:
Trading volumes
To a large extent, our costs are fi xed, giving low marginal costs per new client and transaction. One consequence of this is that increased trading volumes have a strong and favorable infl uence on our fi nancial result. Almost 100 per cent of the net income gen- erated by an increase in the number of transactions is pure profi t.
The net income is our income from the client less the commission we pay to the stock exchange and clearing organization. On the other hand, our fi nancial result is soon adversely affected if share trading volumes go down.
Stock market trend
In the short term, Nordnet benefi ts from a volatile stock market.
Short-term trading increases and the options market thrives.
Active investors become even more active. Parallel to this, we can experience a reverse effect, though somewhat weaker, as some investors are frightened off by a volatile market.
Rising share prices attract
new investors and increase risk propensity and margin trading among existing inventors, whereas falling prices scare off investors and reduce risk propensity among those who remain.
Static share prices result in
reduced activity and lower commis- sion income, and after some time also cause a decline in other Competition and external factors
Quarterly breakeven analysis 2004–2006
‘‘ Nordnet offers 800 mutual funds from more than 50 fund managers.
Anna-Lena testing the new mutual fund supermarket in Norway.
0 8,000 16,000 24,000 32,000 40,000
2004 Number
2005 2006
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Number of trades done per day
Number of trades that makes operating profit Number of trades per day required for breakeven
