ANNUAL REPORT 2001
2001
Contents
2001 fiscal year 1
President’s review 2
Business objectives,
targets and strategies 4
Market review 5
Customers 6
Competitors 8
Organization 9
Operations 10
Staff 17
Structural capital 18
Five-year review with comments 19
The Know IT share 22
Directors’ Report 24
Statement of income 26
Balance sheet 28
Cash flow analysis 31 Supplementary information 32 Notes to the
financial statements 33 Proposal for treatment of
accumulated loss 37
Audit report 37
Board of Directors 38
Corporate management
and key staff 39
Addresses 40
Glossary and definitions
Cover picture:
Mats Wigge, Sundsvall
Know IT Contents
We are now a more clearly focused company than we were two years ago with an organization capable of meeting the demands made on us by the market
and our customers. Page 2
Partnerships and long term relationships will become more important in the future for the
IT consulting sector. Page 5
In-depth and long-term customer relationships guarantee increased added value, profitability, and
security for the customer. Page 6
We develop solutions which contribute to the
digitalization of customers’ entire business processes
thus making their operations more efficient. Page 10 How can 11 subsidiaries in different countries
co-ordinate their webs and yet update them locally? Page 12 The National Social Insurance Board’s ‘virtual
corridor’ was extended by 550 kilometers, from
Sundsvall to Luleå Page 14
Notice of Annual General Meeting Time
The Annual General Meeting will be held on Thursday March 21, 2002, at 5 p.m.
Registration for the Annual General Meet- ing starts at 4.30 p.m.
Venue
Polstjärnan, Sveavägen 77, Stockholm
Participation
To be entitled to vote at the Annual General Meeting, the shareholder must:
• be entered in the register of shareholders
• have notified the company
Registration in the register of shareholders
Shareholders must be entered in the reg- ister of shareholders maintained by the Swedish Securities Register Centre, VPC, not later than Monday March 11, 2002.
Shareholders whose shares are nominee- registered must re-register their shares temporarily in their own name with VPC.
Shareholders who wish such re-registra- tion must inform the nominee in good time before March 11, 2002.
Notification
Notification of participation must be made to Know IT not later than 4 p.m.
on Friday March 15, 2002 at the following address:
Know IT AB (publ) Box 3383,
SE-103 68 Stockholm Sweden
or by telephone +46 8-700 66 00 or by e-mail to info@knowit.se
Nomination Committee
Shareholders who wish to propose Board Members in advance of the AGM can contact:
Mats Olsson, Chairman,
olsson_mats@telia.com
Peder Ramel, Board Member,
peder@rmcab.com
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know it annual report 2001
Know IT 2001 Fiscal Year
• Current operations’ sales fell by 16 percent to SEK 256.2M (305.0) compared with the corresponding peri- od in the previous year
• Operating result after depreciation amounted to SEK –42.8M (–59.4)
• The current operations generated a negative cash flow of SEK –8.5M (–42.7)
• The number of staff fell by 23 percent to 311 (406)
• On May 1, operations in Stockholm were consolidated into one company, Know IT Consulting
• A new share issue with preferential rights for existing shareholders was implemented during October with a contribution of SEK 26.5M to Know IT. The new issue was guaranteed by AB Traction which became Know IT’s largest owner with 26.8 percent of votes and capital
• The Annual General Meeting resolved to change the fiscal year to the calendar year and the 2001 fiscal year, therefore, comprises the period May–December.
SEK M
Sales
0 100 200 300 400 500 600
2001 calendar year 00/01
99/00 98/99 97/98
SEK M
Operating results before goodwill amortization
-40 -30 -20 -10 0 10 20 30 40 50
2001 calendar year 00/01
99/00 98/99 97/98
SEKM
Cash flow before investments
-40 -30 -20 -10 0 10 20 30 40 50 60 70 80
May–Dec 2001 00/01 99/00 98/99 97/98
Ove Fredriksson, Stockholm Dag Rosén, Stockholm
Linnéa Djursén, Stockholm
Erik Johansson, Umeå Mikael Prestby, Stockholm
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know it annual report 2001
On entering 2002, we have put a short but difficult 2001 behind us. The market remained weak. Financial growth has not yet regained speed and hopes for a quick recovery did not material- ize. The projects which were started were mainly aimed at short- term savings such as making existing systems more efficient. It meant that the entire IT consulting sector, which was still suffer- ing from overcapacity following the large demand before the turn of the millennium, had difficulties in finding assignments for their consultants. Know IT was no exception.
However, the picture was not completely unambiguous. Out- side Stockholm we enjoyed continued high demand. We estab- lished an operation in Falun with seven new staff and, in Umeå, we increased the workforce by seven. It is obvious that our com- petence and capacity will be developed in tandem with our cus- tomers’ needs and location.
As an additional counterweight to the sluggish market situa- tion it should be pointed out that not all sector segments pursue a similar wait-and-see policy. The public sector continues to demand IT consultants, partly as a consequence of the authorities’
demands on them for round the clock accessibility. In this sector, we strengthened our sales. It is a sector which will also be very important for us in 2002, as is reflected in the general agreements we signed during the autumn. We have gained supplier approval from purchasers such as Statskontoret, Riksförsäkringsverket, Cen- trala Studiestödsnämnden, Statens Löne- och Pensionsverk, Patent- och Registreringsverket and Riksdagsförvaltningen.
We already enjoyed a close and good relationship with Riks- försäkringsverket (the National Social Insurance Board), RFV.
We have established a ‘virtual corridor’ between Sundsvall and Luleå so that our consultants can work directly in RFV’s develop- ment environment although they are physically 550 km away from the principal’s computer environment.
The pharmaceuticals and biotechnology sector is also of interest to us. We have created a Content Management solution for Pharmacia Diagnostics which enables the company to adapt information locally in different markets in Europe, South Ameri- ca and the USA.
A technology which has become well established is mobile solutions which has now achieved the stability which current users demand of a professional system. Know IT has historically been at the forefront of mobile solutions. We will continue our investment in this sector. Our customers include Cleanosol
whose entire operations are based on mobility. Cleanosol applies road markings so, for easily understood reasons, its production units and the actual production are mobile. For Cleanosol we have built a reporting system which facilitates the handling of order sheets, time reporting, consumption of material, etc.
These are three examples of what we can do for our customers.
The combination of experience and innovative thinking is a charac- teristic of Know IT. They are two qualities needed to enable us to give our customers additional value in our joint projects.
A step towards offering our customers better service is to create the criteria for more efficient organization. Last year, we, therefore, started to consolidate our operations in Stockholm into a single company. Previously they were carried out in eight subsidiaries. Whilst we offer our customers the combined com- petence in one company, we create faster internal processes.
During the year, we adapted our organization to the tough market climate. This involved significant changes, both for indi- vidual staff members and for the organization as a whole. The cuts we were forced to make were difficult but necessary.
We have fewer people but not at the expense of competence.
The strategic focus on creativity and technical leading edge com- petence remains. On average, our consultants have 10.8 years of relevant sector experience and 86 percent have post-high school studies. Know IT is adapted to the current market situation.
Sales and results
We close our accounts after only eight months as we are chang- ing from a split fiscal year to follow the calendar year. It means that, for the shortened year, we have a disproportionately large portion of vacations and public holidays in relation to the num- ber of working days. This, of course, is reflected in our results.
Sales fell during the year. This is also a consequence of the consolidation of the operations which was initiated in the previ- ous year. Net sales for the eight month period amounted to SEK 256.2M compared with SEK 305.0M for the same operations during the corresponding period in 2000.
Operating result before goodwill amortization for the period May–December 2001 amounted to SEK –15.4M (–4.0). Operat- ing profit was charged with costs totaling SEK 8.6M relating to staff redundancies. One-off write-downs of goodwill of SEK 19.4M were made to adapt the goodwill values to the earning potential that some units were deemed to have at that time.
Know IT President’s Review
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know it annual report 2001
We have a culture of quickly understanding how new technology can contribute to developing our customers’ business operations.
Ingrid Engström, President and CEO
New share issue
During the fall, our convertible loan matured for payment. Know IT, therefore, implemented a new share issue with right of prefer- ence for the shareholders. The new issue was guaranteed by AB Traction which became the largest owner in Know IT with 2.7 million shares and a 26.8 percent share of capital and votes. The new issue strengthened Know-IT’s cash holding by SEK 26.5M.
Prospects for the future
During 2001, we were forced to focus on internal issues. Know IT, like the entire IT consulting sector, had a very tough year. We have reacted rapidly to the market’s new demands and we are now a company with a strong balance sheet and a substantial cash hold- ing. In 2002, we will turn our energy outward, towards our cus- tomers and principals. We are now a more focused company than two years ago. We also have a professional organization which meets the demands made on us by the market and customers.
We have a culture of quickly understanding how new tech- nology can contribute to developing our customers’ business
operations. We can, therefore, offer leading edge knowledge of new technology at an early stage whilst our consultants have considerable understanding of our customers’ operations. This is reflected in the fact that in our longstanding customer rela- tionships we often take the responsibility for the further develop- ment and management of the systems we deliver.
I believe strongly in Know IT and in our opportunities for 2002 and beyond. We now stand better equipped to contribute to our customers’ needs. Our business objective is based on strengthening customers’ competitiveness and on customer benefits. I am looking forward to a customer-oriented 2002.
February 2002
Ingrid Engström
President and CEO
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know it annual report 2001
Know IT Business objectives, targets and strategies
Business objectives
Know IT strengthens its customers’ competitiveness by develop- ing customer-adapted, business-critical systems with creativity and technical leading edge competence. Know IT works mainly with organizations and companies in Sweden with a need for IT systems that demand high standards of performance, stability, accessibility, security and which can be accessed from many dif- ferent interfaces.
Financial targets
Profit margin
The long-term profit margin, measured as profit after financial items as a percentage of net sales, should amount to at least eight percent.
Equity ratio
The equity ratio should exceed 30 percent.
Strategies
Know IT works with the following strategies to achieve its targets.
• To focus on sectors with a need for advanced IT solutions in complex environments
Know IT works mainly with customers who require advanced IT solutions in complex environments. Important growth areas in which we have extensive experience are Content Manage- ment and CRM solutions.
A large proportion of our customers are in the telecoms, public sector, media, banking, finance and insurance sectors.
We will continue to focus on these sectors. In addition, the pharmaceuticals sector is an interesting market segment in which we will increase our marketing activities.
• Sector adaptation to trade and industry outside the Stockholm region
In markets outside the Stockholm region, other sectors such as energy and forest are also important due to the industrial structure of the respective market.
The large sector spread in our customer base reduces our vulnerability when there are changes in the economy within different sector segments.
• Continuous development ensures competent staff
Know IT mainly recruits staff who, in addition to a solid theoreti- cal base, have several years’ of relevant, practical business expe- rience. It means that most of our new recruits are graduate engi- neers, or equivalent, with at least five years’ work experience.
Other important parameters are the staff members’ social com- petence, ability to work together and consulting skills.
Know IT is continuously working towards making the com- pany an enjoyable environment in which to work and strength- ening the identity in the company through group-wide social and knowledge-developing activities. We want to encourage a flexible way of working and promote both competence development and the transfer of competence. This is partly achieved through com- petence networks which will facilitate and increase the exchange between the consultants in Know IT.
Anna Ardfors, Stockholm
Fredrik Hesslevik, Stockholm
Johan Sandsten, Karlstad Peter Björklund,
Borlänge
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know it annual report 2001
Know IT Market review
During 2001, the conditions in the Swedish consulting market changed significantly. Cuts and savings packages hit several sec- tors resulting in reduced demand for external consulting services.
The reduced demand led to price pressure and new phe- nomena such as price ceilings and reversed auctions in some procurement. During the second half of the year, the consulting sector was hit by a number of bankruptcies as a consequence of these market factors.
The prospects for the coming year are difficult to judge.
The signals are difficult to interpret and, in some instances, contradictory.
Many factors remain negative. The Swedish export depend- ence means that the international economic factors are very important for developments in Sweden. The cautious optimism earlier in the year was reversed after the terrorist attack in the USA in September.
At the same time, there are analysts who provide a more pos- itive picture, both of the general economy and of the IT market.
In January 2002, IDC forecast a recovery in the IT market during mid-2002. The IT market in Western Europe is expected to grow by 6.4 percent compared with 5.5 percent during 2001.
IDC also publishes an investment index which it has kept since 1998. Although the index fell to its lowest ever towards the end of 2001, it is now rising within the manufacturing industry and commerce. At the same time, the public sector is currently recording record figures and no individual sector has ever reached such a high level since measuring started.
Economic analysts, such as the Swedish National Institute of Economic Research, expect a recovery towards the end of 2002.
A poll carried out by Finanstidningen, which was published on January 23, shows that IT investments are about to increase again. 27 percent of the polled companies plan to increase their IT investments during the year, whereas 52 percent state that their investments are expected to remain the same as 2001.
Some general trends can be discerned relating to the IT mar- ket. Customer cost savings and prudence in starting up new projects are expected to continue. The price pressure is also expected to continue although it will not be as tough in all sec- tors. Partnerships and long-term relationships will be even more
important in the future and interest in the opportunities provid- ed by mobility is again on the increase.
However, different sectors manifest different conditions.
Within banking and finance, for example, cost saving invest- ments within the IT sector are currently a priority.
The telecom sector consists of three parts: operators such as Telia and Vodafone, suppliers of network and communication technology such as Ericsson and Nokia, and suppliers of supple- mentary services. The Swedish operators are developing espe- cially rapidly within the mobile segment. The crucial point is now to produce services for GPRS. Those who are able to pres- ent interesting ideas for new services can probably also be expected to be welcomed as constructors. In addition to servic- es, billing and CRM are segments in which operators make sig- nificant investments.
Ericsson’s substantial cuts, both in its own staff and external consultants, can generate new business opportunities during 2002. If the international economy shows a vigorous upturn during the year, the need for consultants could increase in order to meet promised deliveries.
In the pharmaceuticals and biotechnology sectors, there are financially strong companies which are considered to have a continued willingness to invest.
Demand from the public sector is expected to rise as a result of demands on municipalities and authorities for better ways of using IT in their communication with the public. Despite increased demand, the price pressure from this sector is expect- ed to continue.
Know IT has a solid presence within the aforementioned segments and will focus on companies which are considered to have a sound potential. Areas such as B2B-solutions, CRM, Con- tent Management and mobile IT solutions will gradually make an increasing impact on our customers and should be positive features in our 2002 consulting operations.
Peter Tjernström, Sundsvall Fredrik Popovic,
Stockholm
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know it annual report 2001
Know IT Customers
Energy 2%
Media 3%
Commerce 4%
Industry 7%
Telecom 32%
Banking, finance,
insurance 14% Public sector 31%
Sales by sector
Pharma- ceuticals 7%
SEK 0–1M 16%
SEK 1–2M 9%
SEK 3–5M 12%
SEK 2–3M 8%
SEK 5–10M 8%
SEK >10M 47%
Invoicing to
customers by size The five largest customers
Astra Zeneca Ericsson Posten
Riksförsäkringsverket Telia
During the fiscal year, the five largest companies accounted for 49.2% of sales. No individual cus- tomer accounts for more than 22.6% of sales.
Know IT strives to contribute maximum benefits in close collab- oration with its customers. It means that Know IT is involved in close and long-term customer relationships to enable it to pro- vide increased added value and guaranteed profitability and security, both for the customer and for Know IT.
Over the past year, the market has become tougher and close customer relationships have proved to be crucial in the selection of supplier of IT consulting services.
During 2001 we could see a number of clear trends in our customers’ business behavior:
• Cost savings and delaying the start of new projects
• Increased interest in general agreements
• Increased demands on IT consultants’ knowledge about the customers’ business operations
• Increased interest in mobile solutions
Cost savings
Because of the weak economy during 2001, customers have been significantly more prudent in starting new projects. The investments, which have nevertheless been made, have been aimed at reducing costs and increasing efficiency. This trend is noted in all sectors and results in reduced demand for external consultants.
Increased interest in general agreements
Customers have shown an increased interest in general agree- ments, both in order to simplify purchasing routines and to secure the quality of the suppliers with which they collaborate. It
also means increased opportunities for IT consultants with gen- eral agreements to get assignments. During the year, Know IT has concluded a number of general agreements with both exist- ing and new customers.
Increased knowledge about the customer’s business operations In the business relationship between consultant and principal, it is becoming increasingly important to come up with new ideas based on IT knowledge about the way in which the cus- tomer can develop his business operations and become more efficient. In order to achieve this efficiently, significant compe- tence is required relating to the customer’s business opera- tions. This is achieved through long-term relationships. Our excellent customer relations frequently mean that we are responsible for both the further development and management of the systems we supply.
During the year, Know IT also strengthened its competence and ability to deliver strategic IT counseling in order to meet customers’ needs to develop business operations with new solutions and ideas.
Increased interest in mobile solutions
Within the mobile area, technologies have matured which
means that the companies can realize their investments in the
form of efficiency benefits. Other advantages of mobile solu-
tions, compared with traditional systems, are that they are easier
to administrate and that the hardware is less expensive. Taken
together, this means that the interest in mobile solutions has
increased in the market.
Technology and operational knowledge
Demand is dominated by our customers’ requirements for solu- tions which are able to handle many modern interfaces, complex system connections, large transaction volumes, many simulta- neous uses and high stability and security demands. It means significant demands on our ability to solve advanced problems and to understand complex system solutions.
We fulfill these demands and expectations by utilizing and efficiently combining the broad technology and operational knowledge that Know IT has built up over the years. In this way, customer benefit from a number of additional values:
• Technology know-how – we always strive to be at the leading edge of technology to enable us to utilize efficiently new technology for the customers in their business development process.
• Independence – always to offer the customer the best solu- tion regardless of supplier.
• Width and depth – to have leading edge competence and delivery capacity within the segments which are important in current systems development and integration projects.
• Comprehensiveness – to offer strategic IT counseling, total solutions and expert competence in order to be a compre- hensive partner to our customers.
• Geographic spread – to be located and operate close to our customers.
• Continuity and security – to strive for close and long-term customer relationships.
Customer structure
Know IT’s customers are mainly large and medium-sized com- panies in a number of sectors. The focus is on the telecoms, public sector, banking, finance and insurance segments.
We endeavor to strengthen our position within these seg- ments whilst striving to increase our involvement, especially within the pharmaceutical sector. We consider that we have sound pre-requisites for growth within these sectors as we have considerable experience of carrying out complex assignments in which very large data volumes are handled whilst meeting the demands for integrity and security.
During the year, several important agree- ments were signed, including agree- ments with Statskontoret, Riksdagsför- valtningen, Riksförsäkringsverket, Centrala Studiestödsnämnden, Patent and Registreringsverket, Statens Löne och Pensionsverk and Telia. We have also developed our business with principals such as Posten, Trygg-Hansa, Pharmacia Diagnostics and Läkemedelsstatistik.
During the fiscal year, 31 cus- tomers accounted for 80 percent of sales. The five largest cus- tomers accounted for 49.2 percent of sales. No indi- vidual customer accounts for more than 22.6 per- cent of sales.
Anette Ejebratt, 38, Project Manager, University Studies in ADB
I have worked in the IT sector since 1983 and with System Developments since 1987.
Before I started at Know IT in 1992, I worked in Måldata, On, line and NCC.
What attracted me most to Know IT was its strong technical reputation and caring approach to its consultants.
During my 10 years at Know IT I have had the benefit of being involved in many exciting assignments for clients such as Riksdagen, Skandiabanken and Svenska Dagbladet as well as payment solutions for the Internet. In all the projects, we have worked with modern technology to create customer benefits for our principals. I am looking forward to becoming more involved with technical project management.
Lisa Lind, 28, Consultant, System scientist
Before I joined Know IT, I worked as a SAS pro- grammer in Telia ProSoft AB. I felt that the con- sultant role could be interesting for me as it is a varied job with significant development opportu- nities. As Know IT had a company which focused wholly on SAS Software and had a team of highly competent consultants, I elected to start there. I feel I am developing all the time. Every project is a slightly bigger challenge than the previous project.
I also think it is very good that Know IT invests in technical leading edge competence. It feels good to have that support. In the future I would like to get more deeply involved within data warehouse – architecture/design and, obviously, SAS Software which is continuously being developed.
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know it annual report 2001
Know IT Competitors
During the past year, all operators in the sector have, in principle, implemented structural changes. Most have been forced to cut their staff and focus operations on fewer loca- tions or service areas or both.
As Know IT has units in eleven different locations, the company has a wide variety of competitors. These include:
• Medium-sized IT consultants with the same, or partly the same, orientation as Know IT. Some of the compa- nies have selected different sectors and local markets on which to concentrate their activities. We therefore come up against different companies depending on both the assignment and geographic location. Com- petitors in this group include Adcore, Mogul, Sigma, Modul 1 and Frontec.
• Niche operators or local operators, small consulting companies which focus on a niche within a technology segment and in the local marketplace. These competitors range from one-man companies to companies with up to 10 consultants. In Stock- holm, we meet the strongest competition from niche opera- tors with technical leading edge competence or in-depth oper- ational competence. This is most common within the banking and finance sectors but also in the telecoms sector.
• Multi-national or large Nordic IT consulting companies which
frequently have a large proportion of other operations such
as outsourcing. The companies in this group include
WM-Data, Cap Gemini and TietoEnator. We meet these
competitors more frequently outside Stockholm which can
be explained by the fact that they are nationwide in contrast
to many small consulting companies. In addition, Know IT’s
unit for IT strategy competes with, among other, the strate-
gic consulting company, Accenture.
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know it annual report 2001
Know IT Organization
Know IT operates an organization which is close to business and which reflects how we monitor and control our business.
The fundamental principles for the organization are:
• Clear profit responsibility
• Continuous learning
• Taking individual responsibility for professional development and training
Profit regions and units
Operations are split into two profit regions, Stockholm/Gothen- burg and Other Swedish locations.
Stockholm/Gothenburg has operations in Gothenburg, Stockholm and Uddevalla. Other Swedish locations have opera- tions in Borlänge, Falun, Karlstad, Luleå, Sundsvall, Stockholm, Umeå, Örebro and Östersund. In each location there are one or several units which have a clear profit responsibility.
In order to increase the focus on the market, sales have been more clearly defined as a dedicated sales organization has been formed within Stockholm/Gothenburg. During 2000 and 2001, Know IT in Stockholm changed its sales method from a strongly consultant-oriented viewpoint to a more customer-oriented viewpoint. For the sales person, this means that from having previously been responsible for selling a number of designated consultants and services, he now has the responsibility for a number of designated customers. The advantage is that the sales person can offer all of Know IT’s services and consultants.
The other markets are worked on the basis of their local perspective. Sales are made by company and, except for a few dedicated sales persons, they are mainly handled by the man- agement of the local units. Sales activities are characterized by personal relationships and a strong concentration on local customers.
Common functions
Know IT has elected to work with only a small number of central units and has instead placed most functions in the operations.
Know IT currently has only two group-wide units which are responsible for Group control and information.
Business development is carried out within the respective technology segments and very close to the business opera- tions. The Corporate Management consists of a small number of people to enable it to react to trends and developments in
Number of employees
Consultants Other staff
Stockholm/Gothenburg 120 21
Other Swedish locations 145 16
Group functions 9
Total number of employees 26546
Know IT has 311 employees of whom 265 are consultants. Other staff work in sales, control, administration and group-wide functions.
Parent Company
Business development Stockholm/
Gothenburg
Other Swedish locations
Know IT’s organization is characterized by a decision-making process which is based on local market conditions relevant to each unit. Operations include operational business development which is responsible for developing services and supporting sales. The group-wide functions of information and Group control in the parent company exist to support the operations.
Markus Malm, Stockholm
Kjell Lundberg, Östersund
the market. The Corporate Management consists of the Presi-
dent and CEO, the Chief Financial Officer and the heads of the
profit areas.
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know it annual report 2001
Know IT Operations
Lars Cronfalk, 50, Project Manager, Graduate Engineer
I gained experience in Ericsson where I worked as a hardware constructor, project manager and line manager within product development for 24 years.
I believe in life-long learning and that new challenges provide new learning. Therefore, I chose Know IT which is fundamentally a consistent performer in the consulting market and a first- class consulting company.
My own development is primarily in new, exciting assignments which teach me even more.
Mikael Karsikas, Stockholm
Know IT strengthens its customers’ competitiveness by develop- ing customer-adapted, business critical IT systems.
We especially offer the market:
• System development within a number of technology segments
• Implementation of projects within selected focus areas in which Know IT can provide a total solution
• Strategic counseling
System development
The largest part of Know IT’s operations is system development in the form of strengthening the competence and resources in our customers’ projects. Know IT has in-depth expertise in sev- eral segments, many of which are technology based. This type of assignment is usually carried out on the customer’s premises with the customer frequently leading and controlling the project.
Know IT is a total service supplier offering expertise within the following skill and technology segments:
• IT architecture
• Project management
• Mobile Internet
• Interface design
• Security
• Testing
• Infrastructure
• Databases
• Administration and application operation
• System development with:
– Java
– Microsoft (DNA och .NET)
– SAS Software
– IBM/Lotus
The skill segments crucial for Know IT’s business model are IT architecture and project management which often act as a gate- way to larger contracts with our customers.
IT architecture
Know IT develops complex IT systems which have to meet high levels of performance, robustness, scalability, accessibility, flexi- bility and user-friendliness. In-depth IT architecture expertise is required for this, i.e. knowledge about different technologies and experience of how these can be applied in an IT system.
Our consultants in IT architecture always have a background in system development and have broadened their expertise through various assignments different environments where they have applied different solutions.
Project management
Know IT has for a long time provided its customers with project managers for customer-owned projects. This relates to all types of assignments ranging from developing new systems to imple-
Christer Carlsson,Stockholm
definition and solution proposals to implementation and testing, to the right quality at the right time. These projects are staffed and supervised in their entirety by Know IT’s consultants.
Projects which deliver the total solution are mainly carried out within the Content Management and Customer Relationship Management segments but also within the mobile, business-oriented games and e-busi- ness segments.
Content Management
Know IT ensures that its customers are able to provide the right user with the right information at the right time.
Within Content Management we offer our customers systems for maintenance and publication of information via web technology on public websites, extranets or intranets.
Based on the customer’s needs, the most suitable technical solution is chosen. Updating systems, which are easy to handle and accessible, for example, via mobile solutions, make it easy for the customer to update and change the con- tents on the website.
Competence and experience of, graphic design and applicability ensures that the solution we deliver is suitable for the intended target group.
Our Content Management solutions enable our customers to improve their competitiveness as they can easily keep the content of their websites and intranets relevant and updated, adapt the content for local markets and deliver a personalized content with high quality and short lead times.
menting a completely new infrastructure. During the past year, several new assignments were also carried out in which Know IT has taken an overall responsibility for delivering solutions to meet the customer’s needs. The assignments cover the entire process from analysis to construction, test and delivery.
Know IT has very experienced project managers who operate within several sub-segments such as user interface, test, system development, technical infrastructure, quality assurance and inves- tigatory assignments. Know IT’s project managers possess both traditional project manager competence and in-depth technical competence. They are, therefore, highly capable in situations where an in-depth knowledge is required of the technology is required.
Taking responsibility for delivering the whole solution
Know IT also undertakes overall responsibility for delivering solutions in accordance with the customer’s requirements. It means that, in these assignments, Know IT takes responsibility for implementing the whole of the project, from requirement
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Know IT’s core of technology competence is offered in the form of tangible customer offers such as system development, strategic counseling or project management. Know IT’s offers can also be components in overall under- takings or parts of projects within, for example, CRM, Content Management, e-business for B2B and mobile solutions.
Rasmus Rasmusson, Stockholm
Know IT Case Pharmacia
DID YOU KNOW THAT:
you can diagnose an allergy with a blood sample?
Pharmacia Diagnostics offers systems and equipment for clinically diagnosing different types of allergies through blood tests. The company is the world market leader, largely due to its high quality and reliability. Sales of the company’s systems and products are made through 20 marketing companies in different countries.
Pharmacia Diagnostics lacked a presence on the Internet and rapidly needed to develop a website to be able to market and provide information about the company’s products and solutions to allergy sufferers and general practitioners. A crucial criterion was that each marketing company should be able to publish its own locally adapted market information in its own language. It meant that the company’s own organization should be able to administer the system and have an easy to operate editorial tool which did not require knowledge of HTML coding.
The selected solution was one of Know IT’s tailor-made sys- tems based on Microsoft technology which was highly compati- ble with Pharmacia Diagnostics’ existing system architecture.
Fairly soon, the company discovered the advantages of the database-driven solution and also wanted to implement it inter- nally. The company’s existing intranet was based on FrontPage and few staff in the organization had the knowledge to update the contents. When the updating of the intranet did not work satisfactorily, use of it also reduced.
Know IT was charged with developing the solution further from the external websites to the intranet, and the new system was delivered during fall 2001. The new intranet makes it possi- ble to delegate the responsibility for updating the contents on the intranet. Know IT has been responsible for the pilot study, evaluation, strategic counseling, project control, technical devel- opment and training of administrators and editors.
We currently collaborate with 11 market companies and expect that they will all be represented on the Internet during 2002. Know IT has also initiated a product to build the compa- ny’s extranet based on Microsoft technology.
Pharmacia Diagnostics has 11 subsidiaries in Europe, South America and North America which collaborate with Know IT.
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know it annual report 2001
Stefan Nordqvist, 35, System Analyst and Project Manager, Bachelor of Science, System Science
I have a history in NKV and also ran my own company before I moved to Know IT.
What I like about Know IT is that the small units enable the company to be cohesive and encourage significant participation. It is an IT company of just the right size. At the same time, there are many assignments in which technical competence and human values are important. As the head of the Luleå unit I do, of course, want to be involved in developing our market with more skilled consultants and rewarding local assignments.
My ambition is to continue to be involved as a consultant working in our customers’
premises.
Customer Relationship Management
Within Customer Relationship Management, CRM, we offer our customers tailor-made systems to support customer relations and analyses to maximize the customer’s life cycle value.
Data warehouse for CRM – The foundation pillar of every CRM activity is accessible and analyzable information about the cus- tomer. Know IT offers database and warehouse solutions for col- lecting and storing different types of customer-related data. This could relate to purchase history, demographic or geographic information and also to behavioral data.
Analysis for CRM – There is statistics expertise within Know IT which, together with system development, provides the cus- tomer with real analysis-based CRM solutions. Know IT analyses statistics and, in so doing, transforms customer data to cus- tomer information by, for example, combining visitor statistics with background data from customer registers and demographic data. In this way, added value can be created in the form of cross selling and identification of profitable customer segments.
Know IT Operations (contd)
Packaging for CRM – Know IT has a broad portfolio of tools, sta- tistical methods, etc, for packaging analyses routines into tailor- made solutions which help marketing and sales departments to utilize and refine customer information in customer databases and warehouse.
Use for CRM – Know IT ensures that CRM can really be used as practical support in customer relations, regardless of communi- cation channels. Examples of applied operational CRM are cam- paign optimization, customer segmentation, cross selling, sup- port systems for customer service and personalized websites.
Mobile solutions
In the mobile segment we mainly offer development of mobile
solutions which contribute to the digitalization of the cus-
tomer’s entire business processes and which, therefore, make
customers’ operations more efficient. Know IT specializes in
mobile handling of orders, inventories, invoicing, work order
handling and simplification of sales support.
Know IT Case Riksförsäkringsverket
(the National Swedish Social Insurance Board)
DID YOU KNOW THAT:
Riksförsäkringsverket, RFV, Data, carries out 200 million transactions per annum which is 1,700 transactions per minute. Payments from RFV handled by RFV Data amount to SEK 1 bil- lion per day.
Until December 31, 2002, one of the most important assignments of RFV is to develop and implement the pension reform which has been agreed by the Swedish parliament and which affects 2.2 mil- lion pensioners. The pension project is RFV Data’s largest and most important project for many years. RFV Data is, therefore, bringing together its projects within the pension area ahead of the first payments in January 2003. During 2002, around 300 staff within RFV Data will be involved with the pension project.
Through the investment in the renewal of Försäkringskassor- na’s and RFV’s IT support in connection with the pension reform, there will be a significant need for IT resources over the next four years. The problem is to find system developers with practical expe- rience of object orientation, UML, C++/Java, Tuxedo and Unix in the Sundsvall region. RFV uses Know IT to meet its needs for sys- tem developers, project managers, IT architects, test managers, testers, requirement co-coordinators and system administrators.
In addition to Know IT resources in Sundsvall, Know IT offered a long-distance team of six to eight consultants from its office in Luleå who have competence in and experience of the above technologies and environments. A ‘virtual office corridor’
was extended by 550 kilometers from Sundsvall to Luleå by establishing work stations and a fixed communication connec- tion to Know IT’s office in Luleå.
As Know IT works directly in RFV’s development environment through the ‘virtual corridor’ the demands for security are high.
These are demands on the physical security in the office such as locks, alarms and passes, as well as demands on the information security and servers, routers and communication connection. All this was, of course, solved in accordance with RFV’s demands.
The benefit for RFV is to get access to productive and proficient system developers and secure its development capacity for future deliveries. On their side, Know IT’s consultants get an opportunity to carry out most of the work tasks at home instead of having to be on site in Sundsvall five days a week for several months.
Luleå
Sundsvall
550 km
Riksförsäkringsverket’s virtual corridor was extended by 550 kilometers from Sundsvall to Luleå.
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know it annual report 2001
The services we offer within the respective segments include:
Strategy and technology investigations
• Counseling and IT strategy
We help customers develop an IT strategy and IT vision which support the business objectives of the operation. Thereafter, we frequently meet the management on a regular basis for moni- toring and evaluation.
• Technology-driven business development
We help customers to combine technology and business knowledge in the business development process.
Quality and security matters:
• Quality assurance of critical projects
We make an analysis of on-going development projects and provide customers with an independent third party view of the status in the project.
• Strategic IT security
We help customers to produce information, security policies, management of security procedure, disaster and continuity planning.
• Technology evaluation
We help customers to analyze and evaluate the consequence of alternative technical solutions.
• Procurement of IT systems and contract negotiations Based on many years’ experience, we have produced a method which offers customers the opportunity to write high-quality bidding enquiries which are valid in civil law and can be traced from the enquiry documents right through to monitoring of deliveries/projects.
Games
Know IT develops games for business use. They are games which are built on the basis of a specific business process – such as a customer offer – and can be used in marketing or training. The games convey the business message and an expe- rience with the aid of sound and image.
E-business
E-business concerns refining our customers’ business processes and making them more efficient. Within this segment, Know IT offers a wide range of services, ranging from tailor-made sys- tems and mobile solutions to strategic counseling.
We do, of course, also apply our CRM methods within e-business. Web-mining and click stream analysis are examples of methods we use to predict and analyze customer behavior.
Know IT’s solid IT knowledge, combined with sound knowl- edge of our customers’ operations, enable us to offer a cus- tomer-adapted technical process support which improves busi- ness opportunities within e-business.
Strategic IT counseling
With strong technology expertise as a base, Know IT offers strategic IT counseling to corporate management. The counsel- ing assignments mainly concern strategy and technology investi- gations as well as quality and security matters.
Know IT Operations (contd)
Kjell-Ivar Asplund, Umeå Ulrika Olsson, Stockholm Jerker Bergström, Erik Grimelius, Stockholm
Stockholm
Case Cleanosol
DID YOU KNOW THAT:
in two years, Cleanosol marks roads equivalent to one lap around the Globe or a distance of 40,000 kilometers?
Cleanosol’s main task is road security and comfort. Every traffic accident which can be prevented is a success and this insight is a strong motivating force for being at the forefront within the development of road marking. Cleanosol works both as a manu- facturer and entrepreneur and has achieved continuous improvements over more than 50 years which have led to a safer and more comfortable traffic environment.
Every year, the company has several workforces on Sweden’s roads applying road markings. Every workforce reports the proj- ects they are working on, material consumption and when the projects have been completed. In addition, the individual staff members report their working hours. The reporting, which forms the basis for invoicing, was previously carried out manual- ly. This meant that the reports were sent to the office where they were written into the company’s business system. By providing each unit with a hand-held computer, the workforces can report direct into the system.
Through the investment in a new reporting method for work orders and a different work process, the requirement for IT resources for the realization of a mobile work order system was a critical success factor in the change process. As Cleanosol moved its operating systems to the roads through the hand-held computer system and as the operation becomes dependent on digital technology, the demands on security and operating relia- bility are high. The solution was a reliable and transaction secure wireless communication between the workforces on the road and the offices.
Know IT offered Cleanosol a total solution including the development of a mobile solution and in the reassurance of using a company with experience of several mobile projects. The project involved the development of a Windows-based work management system and a Pocket PC 2002 based hand-held computer system which were then linked to Cleanosol’s existing business system.
Cleanosol’s workforces apply road markings on Swedish roads.
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know it annual report 2001
Know IT Staff
In every consulting company, the commitment, competence, capacity, method of working, motivation and loyalty are the com- pany’s business-critical assets. To develop our staff is, therefore, one of the company’s most important success factors.
Know IT’s consultants have solid technical knowledge and a long experience of the IT sector. Our consultants have, on aver- age, 10.8 years of relevant sector experience.
Know IT was very restrictive in its recruitment over the past year because of the current market situation.
In Stockholm, the workforce was reduced whereas it increased slightly in markets outside Stockholm. In the area where Know IT has recruited staff, most of the new recruits are graduate engineers or similar with more than five years of rele- vant sector experience.
Know IT is a company in which the staff is encouraged to continuously improve to enable them to deliver what we call down-to-earth, leading edge competence. Efficient competence development is important and crucial for Know IT as a learning organization. Our basic outlook is that at least five percent of the working hours should be used for competence development.
Every staff member has a clear responsibility for his own and, therefore, Know IT’s long-term development. To support the staff in their competence development, we have created a sys- tem for transfer of knowledge, partly through a number of com-
petence networks, group-wide training programs, seminars and an efficient intranet.
The competence networks are managed by the consultants themselves and there are currently competence networks within project management, .Net, Java, IT-architecture and Lotus Domino/Notes.
Within Know IT there are currently several parallel career routes. As a consultant, one can develop further within several segments: IT-architecture, project management, leadership, strategic IT counseling, sales, or specialization within one or several technology segments. Different career routes are evalu- ated and rewarded in accordance with similar principles.
The large proportion of staff with university training and a wide experience influences the culture in Know IT in a direction towards high levels of knowledge, professionalism and business practices. For Know IT, it is important that the staff lead bal- anced lives and have interests other than their work. Influences from areas other than purely professional ones are important to enable every individual staff to spot new opportunities and solu- tions to technical problems. It is a way of stimulating the creativ- ity of each staff member.
Staff turnover amounted to 12 percent calculated on a full year basis for the fiscal year. Absence due to sickness was 1.4 percent during the fiscal year.
High school level 14%
Other specialist education 15%
Graduate engineer 15%
Master of Business Admini- stration 4%
System scientist 23%
Other university education 29%
Education levels, consultants
High school level 24%
Graduate engineer 13%
Master of business admini- stration 15%
System scientist 7%
Other specialist education 17%
Education levels, other staff
Other university education 24%
Men
Number of staff<25 26–30 31–35 36–40 41–45 45–50 51–55 55+
Age structure
0 10 20 30 40 50 60 70 80
Women
86 percent of Know IT’s consultants have post- high school education. 71 percent have university education. Among the consultants, system science and graduate engineering are the most common university degrees.
76 percent of Know IT’s other staff, which comprise sales, control, administration and group functions, have post-high school education. Here the most common university degrees are graduate engineer and Master of Business Administration.
76 percent of Know IT’s staff are over 30.
78 percent of the staff are men and 22 per- cent are women. The average age of our male staff is 37 whereas the average age of our female staff is 35. The average age of all staff is 36.
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know it annual report 2001
Know IT Structural capital
Johan Langgren, Stockholm
Know IT is involved with continuous further training of its staff and with quality assurance of its services. Our structural capital enables an efficient operation to provide the best possible cus- tomer benefits in parallel with our developing our staff.
Development and training
A large proportion of staff development is carried out within the competence networks which were developed during the year. The aim of these networks is to spread knowledge and experience with- in specific segments to our staff. The competence networks are created within the segments in which there is an internal demand and are led by the consultants themselves. There are currently competence networks within project management, .Net, Java, IT- architecture and Lotus Domino/Notes. Members of the compe- tence networks meet on a regular basis and their seminars and lec- tures are documented and published on Know IT’s intranet.
In addition, joint training programs are carried out for con- sultants within a specific competence area. External lecturers and teachers are invited to these specialized courses when required. The courses mix workshops with traditional lectures.
In order to spread general knowledge about developments within the IT sector, in different customer segments, and about interesting technology segments, Tech Edge seminars are held monthly for our staff. These seminars are also documented on Know IT’s intranet.
Project policy and development models
During the year, Know IT produced a project policy which describes how we ensure quality control in our projects. The project policy includes the description of our project models and methods.
In projects in which the principal does not decide otherwise, Know IT works with a common project control model, PEJL.
PEJL is a Swedish model which has been developed by the com- pany of the same name. The model guarantees that projects are operated professionally with reference points that enable contin- uous improvement of any weak points in a project. PEJL is pri- marily a tool for the project managers.
The project activities are carried out with two sector estab- lished development methods, RUP and DSDM. Both have been developed by other companies.
In addition to the above, Know IT has its own development model for small projects. It has been developed to suit small assignments in which the project is carried out by only a few individuals.
To ensure a high quality delivery of consulting services, Know IT applies a working model called Relation Based Monitoring.
With the aid of the model, a consultant is evaluated on the basis of a number of factors. Technical competences and the ability to co-operate, initiative and social competence are evaluated.
An evaluation of the consultant’s work is carried out on a continuous basis during the period of the assignment in a quali- ty process in which the focus is on the dialogue between cus- tomer, salesperson and consultant.
Reference database
Within some competence areas, Know IT has developed a refer- ence database in which successful solutions and components are documented to ensure that knowledge and experience from implemented projects can be reused.
Thomas Engström, Falun Tarja Hiipakka, Stockholm Per Wallentin, Gothenburg/Uddevalla
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know it annual report 2001
Know IT Five year summary
Invoicing
During the five latest fiscal years, May 1997–December 2001, invoicing increased from SEK 216M in 97/98 to SEK 411M for the 12 month period which ended on December 31, 2001. For the calendar year 2000, invoicing amounted to SEK 558M. Growth was mainly organic in the first years of the period. In the later years, several acquisitions contributed to the rapid growth whereas the two latest fiscal years were characterized by the sale and closure of operations.
Significant company acquisitions
During 1997/98, Know IT acquired the Stockholm-based compa- nies, Infosys and Openinfo Gränssnitt, which run operations within web consulting, and Candeo Nordkonsult AB which car- ried out IT consulting operations in Sundsvall, Umeå and Luleå.
Candeo still forms the base for Know IT’s operation in Northern Sweden. During 1998/99, Know IT acquired the consulting com- panies, Es Solutions in Stockholm, Unication in Karlstad and Dalsys in Borlänge, which further strengthened Know IT’s pres- ence outside the Stockholm region. In order to enable Know IT to offer its Finnish customers broader solutions, the Finnish business system company Tamscan Oy was also acquired. Dur- ing 1999/2000, acquisitions continued at a rapid rate. Ten com- panies were acquired, of which four were advertising agencies and two focused on business systems.
Divestments
In 2000, the strategy was changed to enable Know IT to have a clearer focus on its core operation – tailor-made IT consulting.
As a phase in this strategy, the business systems operation was divested on November 1, 2000. The investment in advertising agency operations was also reduced and an advertising agency, which was acquired in spring 2000, was divested in April 2001.
During the fiscal year May 1, 2001 –December 31, 2001, no oper- ating companies were acquired or divested. On May 1, 2001, all operations in Stockholm were consolidated into one company after having previously been operated in several companies. In total, 18 non-operating companies were phased out during autumn 2001.
Employees
At the beginning of the five-year period in May 1997, the number of staff was 150. At the end of the period, December 31, 2001, there were 311 staff. At the end of the 1999/2000 fiscal year, the number of employees was 617. The number then fell gradually as a consequence of the phasing out and sales of operations and a reduction in the workforce during 2001 in response to the current demand situation.
Statement of income
During the period May 1997 to April 1999, operating profit before goodwill amortization clearly followed the previous trend with continuous profits. In the 1999/2000 fiscal year, operations expanded significantly through acquisition, also outside the previ- ous core operation. The operating result before depreciation then turned into a loss for the first time in Know IT’s history and amounted to a loss of SEK 25.0M. The following year was charac- terized by structural changes, a mustering of strength and a return to tailor-made IT consulting. The corresponding result was then SEK 6.1M, an improvement of SEK 31.1M. For the May–December 2001 fiscal year, the operating result was again negative as a result of weak demand and costs for phasing out surplus staff, whilst the short fiscal year contained the seasonally weak summer months but not the traditionally strong months of January–April.
The result after financial income/expense developed posi-
tively during the first two of the period’s five years and was SEK
18M and SEK 38M, respectively. Over the past three years, the
corresponding result was negative (SEK –61, –89 and –44M,
respectively), partly as a result of one-off write-downs of good-
will (SEK 17, 41 and 19M) and a capital loss on the sale of the
business systems operations in 2000/01. During each of the
first two years, the Group’s profit margin was 8.4 percent,
whereas it was negative in the past three fiscal years, –11.2, –17.8
and –17.1 percent. Sales per employee were SEK 1.1M in 1997/98
and were SEK 1.1M for the 12 month period which ended on
December 31, 2001. If a comparison is made between the 2000
and 2001 calendar years, it can be noted that the operating
result improved from SEK –138M to SEK –48M, partly because
2000 was charged with significant goodwill write downs.
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know it annual report 2001
Balance sheet
Total assets grew steadily during the first three years of the peri- od, which reflects the expanding operations and the many acqui- sitions. The rising values of fixed assets reflected the acquisi- tions made when both fixed assets and goodwill were added.
The rising values of the current assets related extensively to accounts receivable as a result of the increased sales. During the past fiscal years, the divestment of mainly the business system operation and one-off write downs of goodwill led to a reduction in total assets.
In 1997/98, the capital turnover rate was 1.09 whereas the corresponding value for the 2000 and 2001 calendar years was 1.68 and 2.12, respectively. Return on capital employed was high during the first two years, 27 and 26 percent, respectively, but thereafter negative as a result of the reported losses.
Cash flow
The cash flow from the current operations was negative during the past three years. Disregarding acquisitions, investments were very limited and consisted mainly of IT equipment.
Purchased goods and services
Staff related costs
Cost structure
Depreciation of tangible assets
Cost of premises Administrative and selling costs
Of Know IT’s total operating expenses, excluding goodwill amortization, staff related costs amounted to 71 percent.
%
Equity ratio
0 10 20 30 40 50 60 70 80
Pro forma 2001 00/01 99/00 98/99 97/98
The equity ratio has improved in the past fiscal years and amounted to 45.8 on December 31, 2001.
SEK M
Sales per employee
0.0 0.2 0.4 0.6 0.8 1.0 1.2
Pro forma 2001 00/01 99/00 98/99 97/98
Sales per employee were SEK 1.1M in 1997/98. They fell slightly during 1999/00 and 2000/01 and againamounted to SEK 1.1M in 2001.
21
know it annual report 2001
Know IT Five-year review with comments
Pro forma Pro forma 12 months 12 months
SEK M 97/98 98/99 99/00 00/01 2000 2001 May–Dec 2001
Sales and results
Sales 215.8 459.3 547.7 500.6 558.2 411.4 256.2
Operating result before goodwill amortization 19.3 48.0 –36.5 –3.9 –57.0 –15.3 –15.4
Result after financial items 18.1 38.4 –61.1 –89.3 –148.5 –51.1 –43.9
Profit margin, % 8.4 8.4 –11.2 –17.8 –26.6 –12.4 –17.1
Operating margin, % 8.3 7.9 –13.3 –13.0 –24.7 –11.7 –16.7
Sales growth, % 108.7 112.8 19.2 –8.6 ni –26.3 –25.8
Pro forma Pro forma
980430 990430 000430 010430 001231 011231 011231
Capital structure
Fixed assets 79.5 155.4 239.9 117.7 126.0 87.4 87.4
Current assets 118.9 219.9 223.5 168.8 206.7 106.6 106.6
Total assets 198.4 375.3 463.4 286.5 332.7 194.0 194.0
Shareholders’ equity 121.2 162.6 167.7 107.2 114.2 88.8 88.8
Provisions 4.5 7.5 7.4 2.1 6.0 2.4 2.4
Minority interest – – 0.2 2.5 2.2 4.0 4.0
Long-term liabilities 5.6 52.5 90.1 13.4 72.4 6.5 6.5
Current liabilities 67.1 152.7 198.0 161.3 137.9 92.3 92.3
Total equity and liabilities 198.4 375.3 463.4 286.5 332.7 194.0 194.0
Equity ratio, % 61.1 43.3 36.2 37.4 34.3 45.8 45.8
Investments in goodwill and other surplus values 62.6 74.6 113.6 – 63.1 – –
Investments in machinery and equipment 21.3 22.0 15.9 6.0 17.4 6.4 5.0
Cash flow before investments 10.3 75.6 –33.2 –6.0 ni ni –8.5
Net liquid funds 43.8 57.5 22.7 1.7 –2.0 25.8 25.8
Capital employed 122.4 201.7 209.0 158.6 172.7 99.3 99.3
Acid test ratio 1.8 1.4 1.1 1.0 1.5 1.2 1.2
Net debt ratio –0.4 –0.4 –0.1 0.0 0.0 –0.3 –0.3
Adjusted equity 121.2 162.6 167.7 107.2 114.2 88.8 88.8
Pro forma Pro forma 12 months 12 months
97/98 98/99 99/00 00/01 2000 2001 May–Dec 2001
Profitability
Return on total capital, % 15.5 14.6 –13.4 –22.8 –36.0 –18.7 –17.5
Return on equity, % 16.1 18.1 –38.2 –64.6 –103.7 –50.4 –46.3
Return on capital employed, % 27.2 25.8 –27.4 –46.6 –75.1 –36.9 –32.6
Staff
Average number of staff 203 420 558 495 553 369 351
Sales per employee 1.1 1.1 1.0 1.0 1.0 1.1 0.7
Value added per employee 0.7 0.8 0.5 0.5 ni ni 0.4
Result after financial income/expense per employee 0.1 0.1 –0.1 –0.2 –0.3 –0.1 –0.1
Number of employees at year end 323 511 617 397 406 311 311
ni= no information.
