a n n u a l r e p o r t
2006
A word from the CEO 4 Business Unit Industry/Telecom 9 The contract manufacturing
market is growing 10
Business Unit
Terminals/Machine Solutions 19
A dynamic partner 20
Our customers are capturing
market share and winning awards 22 Business Unit Medical Equipment 29
Our corporate culture 30
Our principles 31
Our quality effort 32
Our targets and employee key ratios 33 PartnerTech’s operations in fi gures 34
2006 at a glance 36
Share and shareholder structure 38
Corporate governance 40
Five-year summary 42
Management report 44
Appropriation of profi ts 45
Risk management 46
Income statement 48
Remarks on the income statement 49
Balance sheet 50
Cash fl ow statement 52
Shareholders’ equity 53
Remarks on the balance sheet
and cash fl ow statement 54 Acquisitions and their impact 55
Accounting policies 56
Notes 59
Auditor’s report 68
Defi nitions 69
Board of Directors 70
Group management 72
PartnerTech locations 74
Annual general meeting 75
contents
coVer, large photo: silVana petroVska, assembler right-hand photo: edin subasic, machine operator left-hand photo: mattias corbéus
customer account manager
and Johnny Vennström, customer logistician
guy bridge technical manager
steVe grief production engineer harald pettersen
electronics engineer
famela aVdiceVic assembler
Valentina JoseVska assembler
diJana hasanaceVic assembler
tim spencer testing engineer
europe’s leading
contract manufacturer
of advanced industrial
products
a wo r d f r o m t h e c e o
Hansatech Group, one of the five, runs three plants in the UK and – like most other contract manufacturers in the country – has produced mainly for domestic customers.
That approach is now broadening. We have introduced the PartnerTech business concept to the UK. We start off by looking at the processes of our customers, choosing the most suitable plant on the basis of their needs and the product life cycle. Among the variables that come into play are scale of production, logistics, proximity to end-customers and the particular stage of the product life cycle.
Industrial customers in the UK have been highly receptive. PartnerTech's offering, along with our organic and acquisitive growth, make us one of Europe's leaders in the rapidly growing sector for contract manufacturing of cutting-edge industrial products.
accompanying customers into new markets
When PartnerTech's customers enter new geographic markets or need to ramp up production for other reasons, they can count on our organization and resources to meet their needs. Our goal is to never be the one that limits what is possible.
Let me illustrate what I'm saying with two of our big assignments during the year. The first order, worth approximately SEK 300 million to PartnerTech, involved producing, assembling and distributing a group of products for Tomra in the German market. The second order, worth SEK 60 million annually, called on PartnerTech to supply components for Electrolux Laundry Systems (ELS) in Asia.
Our Swedish and Polish plants handle production for Tomra. Final assembly and distribution is in Poland, close to the German border.
important acquisitions
After having acquired Finnish contract manufacturer KSH-Productor Oy in 2005, we acquired two more contract manufacturers in 2006 – Th Kristiansen AS in Norway (approximately 140 employees) and Hansatech Group Ltd in the UK (approximately 320 employees).
The purpose of each acquisition was to strengthen PartnerTech's ongoing growth and development. The acquisition of KSH-Productor Oy assured us of broad- based expertise in electronics, mechanics and product development. We also partnered with a group of successful customers – including Thermo Fisher Scientific, an inter- national medical technology company. All in all, we now have a powerful springboard for growing in Finland on the basis of the PartnerTech concept.
A similar process is under way in Norway. The acquisition of Th Kristiansen AS provides us with the solid Norwegian expertise and resources that we need to energetically market our entire service offering. As a result, we have closer relationships with world leaders such as Tomra in returnable containers and Tandberg in communications equipment. We are also an attractive option for other Norwegian customers.
The above two acquisitions furnish us with a strong foundation for further Nordic growth. The acquisition of Hansatech Group Ltd in September was the opening shot for an offensive in the rest of Europe as well.
new bridgehead in europe
Why did we seek a bridgehead in the UK along with the one that we have long maintained in Poland? The reason is that the contract manufacturing market in the UK is highly fragmented and still lacks an uncontested leader.
We looked at the five biggest contract manufacturers before starting negotiations and carrying out the acquisition.
4 5
step by step toward
greater internationalization
PartnerTech had a good year in 2006. A number of press releases during the year testified to our advances. It goes without saying that these developments were the result of wide-ranging discussions, strategic planning and hard work.
So allow me to examine in a little greater detail what has been going on at PartnerTech on the basis of the events that we have identified as important.
4 5
The order by ELS, a division of the Electrolux Group, represents an expansion of an ongoing partnership.
Even before obtaining the order, PartnerTech had been manufacturing power electronic components for ELS facilities in Sweden, Denmark and France. Now we are also in charge of Chinese production for shipment to the new ELS plant in Thailand.
To put it in a nutshell, we manufacture at the plant or plants that are optimal from a logistical or competitive point of view. With that in mind, we expanded our production unit in Atlanta, Georgia during the year – a move that was noted in connection with an order from Isonics Corporation for the
manufacture of a new instrument that detects and identifies explosives.
solutions must be flexible
Although business is going well for PartnerTech, we sometimes face redundancies and must lay off employees.
That happened during 2006, though to a limited degree, at our Karlskoga, Åtvidaberg and Sieradz plants. We were able to re-hire a number of the employees before the layoffs took effect.
The accelerating march of globalization is forcing everyone to think innovatively and search for solutions that promote flexibility. PartnerTech must continue to develop tools and methods that make it even easier for us to convert to new production requirements. Flexibility is the foundation of security.
what's happening in 2007?
We are planning a series of steps in 2007, each of which will help us internationalize even more. We are investing heavily in machinery and other production resources, adopting a brand new enterprise system for the Group, arranging leadership development and management sessions for participants from different countries, and focusing on individual training in order to communicate
even more effectively with our customers.
PartnerTech's corporate culture, which unites its employees, is a key success factor. The culture is characterized by a clear structure, vision and purpose, as well as common values and a skilled, secure, customer-oriented workforce.
During 2007, we will continue down the path that we have embarked on and hope that our development proceeds in the same spirit as 2006.
Mikael Jonson CEO, PartnerTech
mikael Jonson ceo
6 7
6 7 ØiVind tVete
Vensafe asa
theodor mollatt deVelopment manager
PartnerTech is a contract manufacturer for companies that are striving to
focus more on their core operations
we work closely with
our customers to free up their time and energy
▼
8 9 michael bJörne
customer account manager
carina rundqVist
team leader eVa-lott Janson
customer logistician
martin reuterberg final assembly
8 9
Some products of the business unit Industry/Telecom.
modules for industrial laundry solutions PartnerTech manufactures printed circuit boards and complete modules for in- dustrial laundry solutions.
We also cooperate with the customer on product development.
network cameras On behalf of a customer, PartnerTech manufactures leading- edge, digital network cameras for intelligent surveillance.
state-of-the-art steering handles PartnerTech develops and manufactures steering handles for warehouse trucks.
PartnerTech's develop- ment effort is based on solid electronics and mechanics expertise, along with many years of manufacturing plastic components.
antennas for tele- communications PartnerTech's assignment includes new product intro- duction, production and testing.
mobile satellite communications equipment The equipment is used in the field by television crews and others.
PartnerTech's far- reaching assignments include everything from product design to production and testing. The customer can also turn to us for after-sales services.
components for visual communica- tions equipment PartnerTech's assign- ment involves the manufacture of mechanical products, assembly, testing and distribution. The photo is from powder coating operations.
business unit
industry/telecom
Machine SolutionsTerminals/35% (26)
Industry/Telecom 49% (58) Medical Equipment
16% (16)
The business logic is irrefutable – development intensive companies understand the value of investing in technology and market development rather than maintaining pro- duction resources of their own. Outsourcing production and other links in the value chain frees up the energy and assets of these companies. Their growth and development are the big winners in that process.
partnertech leads in europe
After having fortified its framework for international growth in 2006, PartnerTech is now the European leader in the advanced industrial products segment of Contract Manufacturing Services (CMS), for which we make products based on electronics, mechanics and mechatronics (the combination of the two).
The Western European contract manufacturing sector remains fragmented and diffuse. Many of the small contract manufacturers produce for the domestic market only, leading to uncertainty among customers. Is contract manufacturing in their own country a genuine option? Or is it better for a company to set up its own production facilities in Eastern Europe, where labor costs are lower?
The situation opens doors for PartnerTech, which manufactures at the plant or plants that are optimal for the particular product in question. Among the determining factors are the scale of production, logistics, labor costs, proximity to end-customers and the current stage of the product life cycle. Properly managed, those factors add up to greater competitiveness and lower total product costs for our customers.
the contract manufacturing market is growing
10 11
The contract manufacturing sector has experienced a number of changes in recent years. It wasn't so long ago that many companies were asking whether outsourcing production to an external partner was really the way to go. Even if they had already outsourced a lot their other activities, they were far from convinced that a contract manufacturer could improve their bottom line.
What a difference a few years make! Most industrial companies now understand that choosing the right partner can lower their costs per manufactured unit and shorten their time-to-market.
10 11 Large-scale production
of components and modules for consumer, IT and telecom products, as well as Original Design Manufacturers
(ODMs)
2004–
INDUSTRIAL PRODUCTS 2002–
CONSUMER PRODUCTS
1982–1985 2001–2003
The contract manufacturers are
consolidating Telecom is being outsourced
PC production is being outsourced
Production of components and modules for large and
medium-sized industrial companies Some of the contract manufacturers:
� Enics
� InCap
� Kitron
� Note
� PartnerTech Total responsibility for complete systems
products on behalf of medium-sized industrial companies
Contract manufacturer:
� PartnerTech
PC manufacturers recognized the needs and challenges associated with producing and delivering in as large a scale as possible. Manufacturing at their own facilities would have required major investments in additional plants. Instead, they began to outsource new volumes and ultimately to turn over their plants to international contract manufacturers of components, chiefly for consumer products.
The late 1990s reawakened the need for contract manufacturing. Ericsson and Nokia, the big Nordic telecom companies, created a market for contract manufacturers as suppliers of individual components or modules. When demand by the telecom industry fell off, many contract manufacturers were forced to rethink their business concepts and switch directions. PartnerTech, which had put together an effective strategy, dealt successfully with the setback and resurfaced stronger than ever.
incentiVes for deVelopment
European product owners (prospective customers of contract manufacturers) have cut back considerably on costs and personnel in recent years. It cannot have escaped anyone that they are again focusing on growth, the most powerful incentive being the desire to quickly launch innovative products at a low total cost.
To succeed in that effort, product owners are seeking partners that can supplement their own resources. The challenge they face is to upgrade what they have to offer by capitalizing on their core expertise.
The bottom line is that product owners will be asking more and more of contract manufacturers. First-to- market and time-to-volume are critical success factors that demand greater logistical flexibility and reliability. In addition, contract manufacturers are increasingly expected to help reduce costs for everything from component procurement to assembly, installation and after-sales.
Evolution of the contract manufacturing sector since the 1980s.
the nordic countries dominate
A brief look backwards can shed some light on how outsourcing, as well as the strength of the Nordic countries when it comes to contract manufacturing of industrial products, has evolved.
Back in the mid-1980s, the world's big PC manu- facturers set the direction for the contract manufacturing of the future. Computer sales had taken off in earnest, and
12 13
Companies in the industrial products segment have varying needs for contract manufacturing services.
Thus, the most appropriate approach is to proceed from different product life cycles.
STANDARD PRODUCT LIFE CYCLE
In the case of the standard life cycle, initial production is commonly close to the development division of the product owner or contract manufacturer. Once the product transitions to a more mature phase, one or more plants are chosen that best support large-scale production.
HIGH-VOLUME PRODUCTS
Many high-volume products are suitable candidates for extended life cycles. After the first phase during which they are manufactured in Western Europe close to the development division of the product owner or contract manufacturer, phases two and three might take them to a low-cost Asian or Eastern European country.
HIGH-VOLUME PRODUCTS WITH SHORT LIFE CYCLES The combination of large-scale production and a short life cycle enables the simultaneous use of several different plants.
LOW-VOLUME PRODUCTS
This category includes products characterized by great
complexity and frequent upgrades or new models. They are usually manufactured close to the development unit of the product owner or contract manufacturer.
PRODUCTS INITIALLY LAUNCHED IN EUROPE AND SUBSEQUENTLY IN ANOTHER MARKET The approach for this category is similar to that for high- volume products. In this case, the contract manufacturer accompanies the customer in its quest for new markets.
PRODUCTS WHOSE LIFE CYCLES ARE
EXTENDED BY COST-EFFECTIVENESS MEASURES AND HAVE A LOWER PRICE AS A RESULT
Once a product has been on the market for a while, costs can often be lowered by optimizing the original strategy. At that point, production is usually still close to the development division of the product owner or contract manufacturer.
The industrial products segment offers significant growth opportunities for contract manufacturers. The ability of a contract manufacturer to provide a full range of services is a key success factor. Meanwhile, the companies that contract manufacturers serve can zero in on the increasingly vital task of developing and maintaining their brands while identifying and satisfying the needs of their end-customers.
product life cycles lead to different solutions
richard thompson production manager
toni dickerson superVisor
12 13
As a contract manufacturer, PartnerTech integrates some or all of the services that the customer is seeking – from development to production, purchasing, logistics and after-sales. That approach allows us to manage a product throughout its entire life cycle.
Success in such a venture depends not only efficient manufacturing processes, but an ongoing development effort in coordination with production. The products can be manufactured close to the customer's market, in a country with lower labor costs or a combination of the two.
Following are some of the obvious advantages for the customer.
MORE TIME AND ENERGY FOR CORE OPERATIONS Outsourcing production, and possibly other links in the value chain as well, permits an industrial company to focus more on its core operations. We frequently go one step further – for instance, our development engineers might help the customer's specialists by supplying experience that makes an existing product or prototype better or more cost-effective.
FREEING UP CAPITAL
When a customer outsources to PartnerTech, it no longer needs either a special production organization or investments in new machinery and skills development programs for those employees. Ramping production up and down becomes easier to manage.
STRENGTHENING COMPETITIVENESS
Many products can be designed even more intelligently so that they will be less expensive to manufacture. Seventy percent of a product's total cost is often determined at the development and design phase. And once the product has been on the market for a while, costs can frequently be lowered by another 20-25% by optimizing the original strategy.
SETTING THE STAGE FOR FASTER GROWTH
A customer that plans to ramp up production must have production resources that satisfy the demands of the market. PartnerTech provides a stable foundation for expansion in new markets.
why partnertech?
– greater freedom for the customer
mattias corbéus
customer account manager
rickard Jönsson customer engineer Johnny Vennström
customer logistician
elisabeth mitic assembler
therése conradsen operating purchasing
14 15
PartnerTech can integrate some or all of the services that customers are looking for – from development and production to purchasing, logistics and after-sales
contract manufacturing
– another word for freedom
▼
conny bJörklund electronics designer bertil nilsson
customer account manager
bertil alm
deVelopment manager mechanics
14 15 hans andersson
mechanics designer
16 17 thao le
operator
16 17
18 19 monica Johnander
mechanics designer
18 19
Some products of the Terminals/Machine Solutions business unit.
payment terminals On behalf of the customer, PartnerTech is in charge of manu- facturing printed circuit boards, assembling the product, distributing to the end-customer, inventory, service and repair.
cash handling system Working with the customer, PartnerTech is responsible for manufacturing printed circuit boards, assemb- ling the product, stock keeping, distributing to the end-customer and repair.
lottery terminals Based on the customer's industrial design, PartnerTech developed the hardware, as well as the electronic and mecha- nical components. We are also in charge of choosing suppliers, manufacturing, final testing and shipping complete terminals (including software) to end-customers. To ensure long-term competitive- ness, PartnerTech is also responsible for business intelligence and product care.
fully automated recycling center Cooperating with the customer, PartnerTech has introduced this revolutionary new product in record time. Beyond partici- pating in the design and production adaptation effort, PartnerTech takes charge of all links in the chain from materials procurement to stock-keeping.
Terminals/
Machine Solutions 35% (26)
Industry/Telecom 49% (58) Medical Equipment
16% (16)
business unit terminals/
machine solutions
a dynamic partner
we take total responsibility more and more often
PartnerTech has the expertise and resources to integrate some or all of the services that customers are looking for – from development and production to purchasing, logistics and after-sales. Customers are increasingly seeking a wide range of services.
product deVelopment
PartnerTech takes part in the product development effort of many customers when it comes to electronic, mechanical and mechatronic components alike. Some customers turn over the development of new products to us, while others ask us to improve existing products and prototypes, as well as to design test systems.
While our development engineers are focusing on production requirements, the customer's development division can devote more of its time and energy to putting together the kinds of applications that the market is looking for.
Development and production are two sides of the same coin. When they are integrated, cost-effectiveness automatically improves, the process speeds up and the total cost normally decreases.
production
Before starting up production, we sit down with the customer to review the product and its various functions.
If we get involved at an early stage, we can set quality targets while ensuring flexibility and short lead times during the development effort.
We appoint a team, which contributes experience and know-how whether the customer wants to give an extra boost to an existing product or start manufacturing a new one. The team monitors scheduling and quality in one or more of our plants that are optimal from a logistics and marketing point of view. The products can be manufactured close to the development and technical division of the customer, in a country with lower labor costs, or a combination of the two.
20 21
PartnerTech is a strong ally of both large and small industrial companies.
Many of them are internationally active but would prefer not to devote in-house resources to building global structures, such as production, of their own.
PartnerTech has customer centers and plants in Europe, Asia and the United States. We also maintain a broad-based partner network of experts and producers, further seal- ing our promise to provide flexibility and stability regardless of whether customers are growing in existing or new markets.
sirilaksana taiVula assembler
20 21
Because we manufacture for selected segments of the market, we are fully acquainted with their requirements and specifications.
purchasing
Given that the foundation of quality and cost effectiveness is laid at an early stage, the participation of our purchasing unit from the very beginning is one of PartnerTech's strong suits. We are proactive in our choice of suppliers, making sure that we find the right one for every purpose.
The customer can confidently turn the entire responsibility for purchasing over to us. We have a global network of suppliers that meet stringent requirements for quality and reliable delivery. Our Hong Kong unit oversees our purchasing activities in Asia.
Based on the demands of a specific project, we make sure that our supplier agreements will enable us to meet our commitments. As in all of our collaboration, we like to establish a dialog with the customer's purchasing division in order to exchange experience and make sure that everything starts off on the right foot.
logistics and after-sales
PartnerTech’s expertise and resources in development, production and purchasing pave the way for us to take over logistics and after-sales services as the customer deems appropriate. We offer services such as Last Time Buy monitoring, warehousing of products and spare parts, maintenance and repair, as well as distribution in accordance with PartnerTech Order Fulfillment policies.
PartnerTech Order Fulfillment is a selection of customized logistics services to optimize the level and cost- effectiveness of the customer's shipment procedures.
For instance, PartnerTech receives orders from the end- customer and arranges distribution, along with assuming responsibility for repair logistics – the assumption of total responsibility for all logistics associated with repairs. Repair logistics covers the physical distribution of products, as well as Web-based data, such as reports, documentation and statistics.
PartnerTech’s logistics services promote flexibility. They can be combined to meet the customer's requirements, enabling discretionary levels of service and transparent distribution costs.
our customer team
takes charge of the proJect
The mission of our customer team is to make the product more competitive and ensure agreed-upon performance.
The team, which is responsible for the operating effort at one or more selected plants, is supervised by a Customer Account Manager and has specialist expertise in areas such as engineering, logistics, production and development.
our business team promotes growth We put together a business team to help the customer grow. The team includes a Business Development Manager, with whom the customer carries on a regular dialog, as well as a Customer Account Manager and other experts. The business team is a source of creative, forward-looking solutions. Based on the strategy for the particular customer, the team draws up and maintains agreements, compiles data about the market and much more.
cost saVings of up to 50%
In order to ensure the best possible strategy for the customer's product, we have further refined our integrated Value Analysis/Value Engineering (VA/VE) concept. We analyze the product to determine whether and how it can be re-engineered in terms of design, materials and choice of suppliers. We also choose one or more of our plants that are most suitable in terms of geography and production technology. PartnerTech actively employs VA/VE to lower costs for both new and existing products. When VA/VE is fully implemented, we often generate cost savings of 20–50% (sometimes more) per manufactured unit.
our customers are capturing
market share and winning awards
GUNNEBO/SAFEPAY
innoVatiVe technical solution for the retail trade
Gunnebo, an industrial company, is breaking new ground with its SafePay cash handling system. The system, which makes it safer, easier and cheaper to handle cash at retail outlets, was named the most innovative in- store technical solution by the European Retail Solutions 2006 Awards.
The concept development was a joint project of Gunnebo (software) and PartnerTech (advanced mechatronics). Gunnebo chose to work with PartnerTech due largely to our mechatronics know-how and long- standing experience with complex products. The challenge was to design a solution that, despite its small size, would enable safe, burglar-proof transport of coins from the time that they are inserted into the machine until they are removed. The solution required rational production processes. SafePay has now been adapted to handle coins in various currencies and denominations.
The system meets the requirements of many leading European retail chains.
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Time Volume
Standard product life cycle Production close to development/customer (Customer center)
Large scale production
Production close to development/customer (Customer center)
Time Volume
Extended product life cycle – high volume Production close to
development/customer (Customer center)
Low-cost production step 1
Production close to development/customer (Customer center) Low-cost
production step 2
ELECTROLUX LAUNDRY SYSTEMS (ELS) first europe – now asia
As a division of the Electrolux Group, ELS markets successful professional laundry solutions for manufact- urers, hospitals and hotels.
Launched back in the 1980s, cooperation with PartnerTech initially involved the production of electronic components. PartnerTech subsequently became more deeply involved and lowered the costs associated with design, materials and processes for electronic components, primarily in washing machines and dryers. As the relation- ship evolved, PartnerTech's production responsibilities came to include both printed circuit boards and complete modules for the various ELS plants in Europe.
In line with PartnerTech's business concept of accompanying its customers as they enter new markets, the partnership took a new turn in 2006. PartnerTech is now responsible for the domestic supply of power electronic components to the new ELS plant in Thailand.
PartnerTech manufactures in China for that purpose.
PartnerTech's technical and customer center in Vellinge, Sweden, is still in charge of product development and technical support. Meanwhile, domestic supply to ELS plants in both Asia and Europe is secure.
22 23
BIOTAGE
cost reductions of oVer 50%
Biotage, a leading biotechnology supplier, found itself at a crossroads. The company's product was the world's best in its segment but too expensive to withstand growing competition. The only answer was for Biotage to develop a new generation.
PartnerTech's job was to use its mechatronics exper- tise to design a solution that would reduce Biotage's production costs by at least 50%. The product was a technically sophisticated instrument, including a precision robot, for the synthesis of pharmaceutical substances and other purposes.
In order to reach its ambitious goal, PartnerTech scrutinized the previous specification of requirements and reviewed all subcomponents. What cost savings were available on the basis of Value Analysis/Value Engineering (VA/VE), and which subcomponents could be integrated with each other? Could certain features be borrowed from high-volume products.
The cost per manufactured unit has now been lowered by more than 50%.
In addition to development and production, PartnerTech provides logistics and after-sales services.
BT INDUSTRIES
plastic steering handle – an industry winner
From a metal to plastic steering handle. From steering with cables to contact-free steering with magnetic sensors.
It was a winning concept for BT Industries, a world- leading supplier of electric powered warehouse trucks and materials handling services.
BT Industries has long engaged PartnerTech to develop and manufacture steering handles for its trucks. In designing new, more intelligent Barracuda handles, PartnerTech raised quality and lowered costs per manufactured unit. BT Industries passed a milestone in 2006 – over 100,000 trucks sold with Barracuda handles. PartnerTech's development effort was based on solid electronics and mechanics expertise, along with many years of having manufactured plastic components.
Besides being reliable even in rough settings, the handles are ergonomically sound for the operator. The plastic design has become something of an industry standard.
Production close to development/customer (Customer center)
Time Volume
VA/VE activities in customer center
Extended product life cycle with added services
Volume
Product life cycle – rollout on new markets Production close
to development/
customer (Customer center)
Local production to market 1
Local production to market 2
Production close to development/
customer (Customer center)
Time
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24 25
PartnerTech has customer centers in Europe, Asia and the United States
– and a global partner network of experts and manufacturers
freedom for our customers
▼
katarina holmström team leader
börJe ingVarsson
business deVelopment manager
26 27
maxim sheVchenko team leader
Jörgen fager technician
26 27
mathias sohlberg assembler
28 29 birgitta kindahl
assembler
28 29
Some products of the Medical Equipment business unit.
analytical instruments for clinical chemistry PartnerTech has long developed and manu- factured instruments that integrate multiple technologies, such as handling liquid sub- stances, advanced flexible mechanics, optics and detection.
instruments for measuring intraocular pressure
PartnerTech's assignment includes development and production of a turn- key product. The deve- lopment effort requires in-depth know-how when it comes to software, electronics, medical standards, mechanics and calibration.
cardiopulmonary resuscitation (cpr) equipment
On behalf of the customer, PartnerTech developed an integrated solution that encompasses product development, verification, cost-effectiveness, manu- facturing, final testing, spare parts and inventory management, and distribution. PartnerTech’s responsibility for produc- tion also ensures flexible volumes.
complete product for flour and seed analysis PartnerTech is in charge of production and system testing, which is performed in a controlled environ- ment with real raw materials. The top quality is a result of our far-reaching experience of testing complex systems.
special medical technology equipment On behalf of the customer, PartnerTech develops and manufactures special equipment for micro- wave heating of chemical solutions.
Our long experience of mechatronics, particularly robotics, has boosted the customer's success and competitiveness.
personal radiation dosimeter PartnerTech manufac- tures and calibrates these radiation dosimeters in turnkey condition. Our solid radiometry and calibration expertise, as well as our ability to take charge of recalibration and service throughout the product life cycle, won us the order.
business unit
medical equipment
Machine SolutionsTerminals/35% (26)
Industry/Telecom 49% (58) Medical Equipment
16% (16)
30 31
times, reliable delivery and customer satisfaction. Other key elements of our approach are ongoing improvements, not to mention flexibility with respect to time, place and scale of production. Our goal is to minimize time-to- market and ensure that production can be ramped up with as little delay as possible.
PartnerTech strives for dynamic organic growth in tandem with acquisitions. With Sweden as a base, we are expanding in Europe to bolster our leading position.
our business units
To make sure that we can satisfy the needs of our customers in the most effective manner possible, we have broken down our operations into three business units that meet the demands of all our customer segments. Our development, manufacturing, purchasing, logistics and after-sales services all support the business units.
INDUSTRY/TELECOM
Among our Industry/Telecom products are operator terminals, power and range control units, broadband routers, microwave links, mobile satellite communications systems, base station antennas, advanced process mechanics for the defense industry, systems for remote reading of electric meters and control mechanisms for automatic door openers, industrial grade cleaning equipment, forklifts and industrial robots. For many of our industrial customers in the IT sector, we take charge of manufacturing advanced box build electronics, both as modules and complete products.
TERMINALS/MACHINE SOLUTIONS
Among our Terminals/Machine Solutions products are deposit return and reverse vending machines, cash handling systems, card readers for payment systems, lottery terminals, information and service terminals, prepackaging machines, printers for terminals and vending machines, paper handling equipment and advanced flexible mechanics.
MEDICAL EQUIPMENT
Among our Medical Equipment products are blood analysis equipment, modules for dialysis and anesthesiology equipment, a mechanical heart compression system, allergy testing instruments, food and DNA analysis instruments, prostate treatment equipment and printed circuit boards for various medical technology instruments.
The strength and durability of the PartnerTech brand stem from our longstanding customer relationships, ability to generate profitability and growth, and a Stockholm Stock Exchange listing that goes back to 1997. Promoting brand recognition is an ongoing process that includes not only our communication with the world around us (like this annual report), but the performance and commitment of our employees. Thus, steadily improving our skills and customer relationships has top priority when it comes to brand promotion as well. Our customers are always secure in the knowledge that they can depend on us. The overall objective of our words and deeds is that the PartnerTech brand be synonymous with greater competitiveness, as articulated in our guiding principle "Delivers Power to Create."
Vision
Our vision is to be the obvious choice of contract manu- facturer in the business-to-business segment.
business concept
PartnerTech develops and manufactures products under contract for leading companies, primarily in telecom- munications, IT, the engineering sector and medical technology.
As a systems supplier, we proceed from our core expertise in the combination of electronics and mecha- tronics to enhance the profitability and competitiveness of our customers.
strategy
In order to grow our business and realize our vision, we regularly review our strategy. We want to make sure that we have the proper structure for state-of-the-art development, new product introduction and manufacturing assignments, as well as offering expertise and services when it comes to development, production, purchasing, logistics and after-sales.
PartnerTech's role vis-à-vis its customers is to provide expertise and take an integrated approach. That role requires the ability to manage the entire product life cycle, along with leading-edge skills in electronics, mechanics and mechatronics. Those qualities allow us to create solutions that strengthen the customer's competitiveness.
Among the key priorities in our capacity as a partner are proximity to our customers, top quality, short lead
our corporate culture
our principles
i'll do it
➤ I assume responsibility for:
– my commitments
– acting on what I see around me – now
– my personal development and that of my company – seeking and sharing information
➤ I make the best of a situation or do something about it
we are cost wise
➤ We give our all at the beginning in order to ensure the best possible end-product
➤ Creative solutions and frugality leave us room to be innovative
➤ We take a second look at all of our costs – common sense
contributing to stable social deVelopment
In order to promote stability and business ethics, PartnerTech emphasizes the establishment and pre- servation of trusting relationships among our employees, partners, public agencies and other external stakeholders.
We treat our employees the same regardless of the country in which they work. It goes without saying that we abide by the agreements that we have entered into with our customers and maintain confidentiality. PartnerTech does not own any products, but rather develops and manufactures them on behalf of its customers.
popular training program
Our employees, customers and suppliers can all partici- pate in our PartnerTech Academy training program.
Structured the same for everyone, the training covers Six Sigma and Supply Quality Assurance Plan (SQAP), the ISO 14001 environmental management system, our range of services and much more. PartnerTech Academy is also responsible for other Group-wide training.
Stressing the importance of knowledge is our way of encouraging our employees to never stop learning.
With that in mind, we supplement formal training with continuing skills development that inspires employees at the various units to share their experience.
links to success
A cohesive corporate culture is central to PartnerTech’s growth and development. Positioned at the forefront of technological advances, we often work with new products and innovative customers in a variety of industries. The complexity of many projects provides our employees with the opportunity for personal and career development.
Another source of stimulation is our ability to manage a customer’s product throughout its entire life cycle.
Our “LINKS to success” principles strengthen our sense of togetherness, individual security, independence and efficiency.
success breeds success
➤ We evolve alongside of successful, demanding customers
➤ We are an active partner and make demands of our own
➤ We take responsibility for fruitful customer relationships
➤ We relish challenges
you can count on us
➤ We keep our promises
➤ We never cut corners
➤ We are systematic and orderly
we are one team
➤ We stand up for each other – no “us vs. them”
➤ We have clear roles and targets – we help each other
➤ We put together the right team for every task
➤ We learn from each other
straight to the point
➤ I insist on straightforward, open communication and:
– I tell it like it is
– I discuss substance, not personalities – I listen carefully and exhibit respect for
the other person
– I show my appreciation of others
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our quality effort
focus on quality awareness
PartnerTech's organization focuses heavily on quality consciousness for the purpose of minimizing lead times and maximizing flexibility. The Total Quality Management (TQM) approach includes putting the customer at center stage, ongoing improvements, a process orientation and fact-based decision making. We use the 5S, Six Sigma, Pareto diagram and Ishikawa diagram quality tools.
The Group-wide management system meets the ISO 9001, ISO 14001 and ISO 13485 standards, as well as supporting customer-specific requirements such as Quality System Regulations (QSR) and Quality Assurance Testing (QAT).
QSR comprise FDA's regulations for medical techno- logy products to be sold in the United States.
QAT applies to the telecom industry and is required for selling to a special international operator.
steady improVements
To ensure steady improvements in line with TQM, we use the Group-wide One Step Ahead toolbox. The objectives are top quality, reliable delivery, cost consciousness with respect to products and services, and employee commitment. Among the ingredients of One Step Ahead are methods for uncovering and eliminating hidden quality snags. The concept guides our customer teams in identifying objectives and activities in partnership with the customer.
quality assurance method
PartnerTech has far-reaching experience of dealing with customer-specific requirements. Our quality assurance effort, in relation to suppliers as well, is based on Supply Quality Assurance Plan (SQAP), a widely accepted method for ensuring the quality of products, projects and initial cost-effectiveness steps. SQAP also serves as a knowledge base.
six sigma
Both on its own and in cooperation with customers, PartnerTech arranges Yellow Belt trainings and associated improvement projects. The large number of PartnerTech employees who have earned Black Belts, Green Belts and Yellow Belts has clearly improved product quality, delivery time and cost-effectiveness.
systematic enVironmental effort
PartnerTech pursues an environmental effort on a number of levels in order to maximize resource utilization and minimize environmental impact. We accord top priority to renewable resources, purify and recycle waste water, sort refuse and make sure that it is recycled or incinerated, employ biofuels for heating, and use powder lacquer instead of solvent-based lacquer.
PartnerTech has a Group-wide ISO 14001 certificate.
As a result, our various units pursue a uniform environ- mental effort.
The Folksam Climate Index rates our environmental performance on a regular basis. All of our units are included. The latest rating awarded us 4 stars of a possible 5.
safe and healthy workplace
PartnerTech prioritizes a safe and healthy workplace.
To prevent stress injuries, employees can adapt their workstations to ergonomic requirements. Most of our units offer exercise and training opportunities for both preventive and rehabilitative purposes.
conVersion to lead-free production Starting on July 1, 2006, the EU requires that most electronic products be manufactured without lead.
Lead and lead compounds are hazardous to both health and the environment. Traditional tin-lead solder, which contains almost 40% lead,has been replaced by a lead- free equivalent. Particularly in terms of new technology, PartnerTech has played an active role in the transition to lead-free production.
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