NOTE Annual Report 2009

NOTE

Annual Report 2009

NOTE ANNuAl REpORT 2009

Contents

IntroductIon

This is NOTE 1

The year in brief 2

CEO’s statement 4

operatIons

Vision, business concept and goals 6

Business model 7

Market and competitors 10

What they are saying about NOTE 12

Risk management 13

Quality, environment and ethics 14

Human resources 16

Organisation and group management 18 Board of Directors and Auditors 20

Five-year summary 22

Financial definitions 23

the note share

Share data and shareholders 24

corporate governance

Corporate Governance Report 26

Formal annual accounts

Report of the Directors 33

Consolidated accounts 36

Parent company accounts 54

Audit Report 63

Addresses 64

annual general meeting

The AGM (Annual General Meeting) will be held at 11 a.m. on Tuesday, 27 April at Spårvagnshallarna, Birger Jarlsgatan 57A, Stockholm, Sweden. Information on the notification procedure for the Meeting will be uploaded to the website www.note.eu coinci- dent with the invitation to the Meeting by no later than four weeks prior to the Meeting.

notification

Shareholders intending to participate in the AGM must be recorded in the share register maintained by Euroclear Sweden AB by

21 April, and notify NOTE of their intention to participate by no later than 4 p.m. on 21 April.

Business

The agenda and business of the AGM will be stated in a notice in the daily press and will be available on NOTE’s website. Documentation is also available from the company coincident with notification of intention to participate at the Meeting.

dividend

The Board of Directors is proposing to the AGM that no dividend is paid for the financial year 2009.

nomination committee

The Nomination Committee has the following members:

Kjell-Åke Andersson (representing own holdings) Stefan Charette

(representing Investment AB Öresund) Bruce Grant

(representing Garden Growth Capital) Ulf Strömsten

(representing Catella Fondförvaltning) shareholder information

IntroductIon operatIons the note share corporate governance Formal annual accounts

This is NOTE

NOTE is one of the Nordic region’s leaders in manufacturing and logis- tics services for electronics-based products. NOTE is active on the EMS (electronics manufacturing services) market and offers electronics produc- tion services right through the value chain, from development and produc- tion to after-sales. Its customers are mainly in the Nordic region and the UK.

NOTE has done methodical work to realign its operations—from a tradi- tional role of a contract manufacturer

of electronics to a unique services provider on the EMS market.

NOTE’s business model, Near- sourcing™, is based on a complete picture and consists of three compo- nents: Nearsourcing centres for pro- totyping and small-scale production in close collaboration with customers, services and tools for control right through product lifecycles and cost- efficient volume production in Europe and Asia.

NOTE offers electronics production services right through the value chain, from development and production to after-sales.

Calendar Interim Report

Jan–Mar 2010 27 April 2010 Interim Report

Jan–Jun 2010 16 July 2010 Interim Report

Jan–Sep 2010 21 October 2010

Ordering financial information

Financial and other relevant information can be ordered from NOTE. Out of consideration for the environment, the amount of printed matter has been reduced and a subscription service is readily available from NOTE’s website.

Website: www.note.eu Tel: +46 (0)8 568 99000 Fax: +46 (0)8 568 99099

Investor Relations contacts

Acting President and Chief Executive Officer Göran Jansson

Tel: +46 (0)8 568 99006, +46 (0)70 698 8572 e-mail: goran.jansson@note.eu

Chief Financial Officer Henrik Nygren Tel: +46 (0)8 568 99003, +46 (0)70 977 0686 e-mail: henrik.nygren@note.eu

Financial information

Proprietary production capacity:

Sweden, Norway, Finland, UK, Estonia, Lithuania and China.

ems-

™: NOTE can offer additional cost-efficient production close to end-customers through its participation in the international ems-

network in Brazil, the Philippines, India and the US.

Number of employees as of 31 December 2009: 1,100.

Sales in 2009: SEK 1200 m.

Share: Quoted on NASDAQ OMX Sweden’s Nordic List (Small Cap/

Information Technology). At year-end 2009, the share price was SEK 21.30.

Market capitalisation was SEK 205 m, divided between 9,624,200 shares.

Key facts

2 NOTE ANNuAl rEpOrT 2009

The year in brief

January–december

Sales were SEK 1,200.1 (1,709.5) m.

Operating profit/loss of SEK –90.8 (–3.8) m. Profit/loss includes non-recurring costs of SEK 63.7 (48.7) m.

The operating margin was –7.6 (–0.2)%.

Profit/loss after financial items was SEK –97.9 (–14.4) m.

The profit/loss after tax was SEK –81.0 (–13.1) m, or SEK –8.42 (–1.36) per share.

Cash flow after investments was SEK 23.9 (25.1) m, or SEK 2.48 (2.61) per share.

events of the year

Knut Pogost was appointed Presi- dent and CEO of NOTE on 3 June 2009.

Decision to discontinue production of a major product by NOTE’s larg- est customer in the Telecom seg- ment resulted in significant impair- ment losses and close-down costs in the third quarter. As a conse- quence, the operations at Skellefteå were divested at year-end.

The acquisition of the IONOTE electronics plant was completed at year-end 2009, which was previ- ously operated as a joint venture with an Asian partner. In the year,

the operations of IONOTE were developed to satisfy customers’

increasing needs for direct sales to the Chinese market.

subsequent events

On 24 January 2010, Göran Jans- son, Deputy Chairman of the Board, was appointed Acting President and CEO of NOTE.

As part of NOTE’s continued struc- tural transformation, an overhaul of the group’s units has begun. NOTE will utilise its unique strengths and competence in the high mix/low volume market segment better.

The objective is to take savings and rationalisation measures that

create a positive profit effect of at least SEK 50 m in annualised terms during 2010. As part of this pack- age, NOTE will further concentrate its production units in Sweden and internationally.

The estimated cost of this rationali- sation package is some SEK 45 m, which will be charged to profits in the first quarter of 2010.

At the Extraordinary General Meet- ing on 7 April 2010, the Board of Di- rectors proposed that the Meeting resolve on a new share issue of SEK 87 m for current shareholders.

IntroductIon operatIons the note share corporate governance Formal annual accounts

Financial summary of

2009 Full year Q1 Q2 Q3 Q4

Sales, SEK m 1,200.1 329.1 312.1 267.4 291.5

Non-recurring costs 63.7 – 8.0 55.7 –

Operating profit/loss ex-

cluding non-recurring costs –27.1 –8.6 –10.1 –5.7 –2.7

0 100 200 300 400 500

Q1 Q2 Q3

2008 2009

Q4 Q1 Q2 Q3 Q4

–25 –20 –15 –10 –5 0 5

Q1 Q2 Q3

2008 Profit margin, %

Sales, SEK m

2009

Q4 Q1 Q2 Q3 Q4

4 NOTE ANNuAl rEpOrT 2009

CEO’s statement

progress in 2009

When the financial crisis hit the world in autumn 2008, it fundamentally altered our circumstances. All sec- tors and customer segments were affected more or less simultaneously, and volumes on our then-current as- signments quickly contracted. We also faced a structural challenge when our biggest customer in the Telecom seg- ment decided to amend its product offerings. Overall, our sales fell by nearly 30% in 2009 year on year to SEK 1,200 (1,710) m.

Despite substantial cost savings, reduced sales meant that our profits were unsatisfactory. We posted a loss after financial items of SEK –98 m, of which SEK –64 m comprised restruc- turing and other non-recurring costs.

Reduced demand also presented a major challenge to our cash flow.

Alongside our customers, we did a lot of work to balance our inventories. In the year, our inventories were down by 36%, making a significant contribution to us posting a positive cash flow of SEK 24 m in the year.

In the fourth quarter, demand re- mained some 30% lower than the pre- vious year. As a result of the gradual impact of our cost savings, we neared break even, with a fourth-quarter oper- ating profit/loss of SEK –2.7 m.

Events in the Telecom segment resulted in the production of our larg- est product in sales terms discontinu- ing. This loss of production resulted in the operations at Skellefteå, Sweden being divested at year-end.

looking back

When I was elected as a Board member of NOTE in 2007, its strategy and plans were focused on realign- ing NOTE through a greater services content, geographical closeness to customers through more Nearsourcing centres and reducing cost levels for labour-intensive processes. We have increased our services content by more active participation in custom- ers’ development processes. Signifi- cant resources have been assigned to building a preferred parts database (NOTEfied), a PLM tool for superior documentation management, acquisi- tions of design competence and the purchasing organisation in Poland.

Our cost level has been reduced by relocating labour-intensive pro- duction to NOTE’s acquired units in low-cost countries. At year-end 2009, some two-thirds of our employees were located in low-cost countries, compared to some one-third two years ago.

Realigning a group of multiple entities with differing backgrounds and cultures, while also accumulating a range of new competences, is far from easy. Unfortunately, the effort, expense and time for this process was underestimated, while parts of our organisation did not adopt the new ideas. And simultaneously, the economy dramatically deteriorated.

These events resulted in two changes of CEO in close succession.

current conditions

So how are things with NOTE? Let me summarise:

The starting-point is that the EMS sector is one of the world’s tough- est, and arguably, one of those most affected by globalisation. Meanwhile, the usage of electronics products, which traditionally were mechanical, or in any case not interconnected in networks, is increasing. These products feature relatively short pro- duction runs and long lifecycles, and it is here that NOTE makes a unique offering. We can help a lot of produc- ers so that the electronics in their products is designed and produced with high quality and cost-efficiency.

We can offer assistance on efficient prototyping and producing com- ponents at the right cost, while we also have production capacity close to the customer—or at one of our foreign units.

NOTE has competent and com- mitted people, which creates good prospects for success. However, we need to get better at pulling in the same direction and reducing uncer- tainties internally.

Our realignment has been costly, but despite challenging economic conditions, NOTE has been able to produce healthy cash flow.

At year-end 2009, NOTE had an equity to assets ratio of just under 30%, which is respectable considering that we have a high share of current assets.

The financial crisis and severe recession have accelerated NOTE’s structural transformation. A number of segments are now in focus to build confidence and create the prospects of growth and profitability.

IntroductIon operatIons the note share corporate governance Formal annual accounts

this is what we’ll do

In late-January 2010, I accepted the challenge as Acting CEO to re-engen- der confidence, through necessary structural measures to reduce our

‘idling costs’ and improve our utilisa- tion of the organisation’s strengths.

Although demand stabilised in autumn 2009, there are few signs of any quick economic recovery. Accord- ingly, my mission is focused primarily on the following segments:

Increasing volumes—continued focus on future sales growth in the Nordic region. We will take a higher share of our market segments of high mix/low volume, where we of- fer unique advantages. We will also be sharpening our focus on smaller and medium-sized accounts in this region. We have also observed that nearly half our Nordic customers have global operations. To grow, our customers must be able to offer their products on growth markets.

This driver means that an increasing number of our customers need to relocate their production to Asia.

Accordingly, one big challenge will be to follow our customers and offer services with the same high

Our now wholly owned operation in China is fully ready to meet the needs of European customers that want to take the step into Asia.

Cost savings—we will be inten- sifying NOTE’s structural trans- formation. We need to increase the group’s capacity utilisation.

Operations that are not profitable will be closed down. We will be focusing all our volume production on one plant at Pärnu, Estonia and one in Tangxia, China. In Sweden, we will be merging our units into one company with shared functions such as sales and accounting. The number of production units will be reduced to four.

Greater clarity—communication and decision processes will be improved by securing them clearly in our organisation and through effective monitoring. Roles and processes will be more consistent, focusing on cus- tomer satisfaction and profitability.

Quality enhancements—we’ve already made a lot of progress in our vital quality work. We are now setting the standard higher, and

Strengthening our capital base—we will be sharpening our focus further on efforts that improve our utilisa- tion of working capital. In this way, we will also reduce the risks of our business. The new share issue we have announced is another measure to improve our capital structure and prospects for growth.

summary

The goal is for NOTE to grow and that growth will be with high efficiency and profitability. Major challenges still lie ahead of us, but I am convinced that the NOTE of tomorrow has good prospects of building lasting values for customers and shareholders.

Göran Jansson

Deputy Chairman in 2009 and Acting President and Chief Executive Officer from January 2010.

Clarity and focus are the

foundation of future growth.

6 NOTE ANNuAl rEpOrT 2009

vision

NOTE—the relevant EMS partner.

Business concept

NOTE is a local business partner delivering innovative solutions for the global manufacture of electronics- based products in the high mix/low volume segment.

Business goals

NOTE will be the sector’s best col- laboration partner with its high level of competence, competitive total cost of ownership and professionalism. To make the market’s most competitive offering, NOTE shall possess special- ist NPI competence and constantly focus on enhancing the customer’s competitiveness. NOTE shall be an at- tractive employer, a good investment for shareholders and a professional customer for its suppliers.

Financial goals Growth goal

NOTE shall increase its market shares organically and by making acquisi- tions.

Profitability goal

NOTE shall grow with profitability.

Its objective is a minimum return on operating capital of 20%. For the long term and over a business cycle, profit- ability shall also exceed the average of other medium-sized multinational EMS vendors.

Capital structure goal

Minimum equity to assets ratio of 30%.

Dividend goal

Dividends shall be adapted to average profit levels over a business cycle, and for the long term, will be 30–50%

of profit after tax. NOTE may also use dividends to modify its capital structure.

Vision, business concept and goals

IntroductIon operatIons the note share corporate governance Formal annual accounts

Business model

a strong complete offering NOTE’s offering helps customers to cut and control total cost of own- ership. NOTE’s quality focus with special strengths on products with long lifecycles mean that industry and defence sectors are priority customer segments.

NOTE’s business model is based on a complete picture and consists of three components: Nearsourcing centres where work is done in close collaboration with customers, control through product lifecycles and cost- efficient production. NOTE’s Lean production philosophy continuously rationalises all parts of operations.

NOTE likes to use the ‘Made in NOTE’ concept, where a product is covered by NOTE’s complete picture, which stands for quality, stability and competence.

nearsourcing centres

NOTE and its customers work in close partnership through the development phase in NOTE’s Nearsourcing centres, while production is directed to the best cost alternative depending on prod- uct lifecycle, production volume and geographical final market. Geographi- cal closeness and good collaboration conditions are highly significant when projects require unique competence and a substantial transfer of knowledge between the parties—Nearsourcing also means that product times to market are short, which reduces capital

Servicing and development services are provided in close partnership with customers at NOTE’s Nearsourcing centres. The focus is on adapting production and practical applications and this is where design, develop- ment, PCB layouts and prototyping are done. Components and produc- tion is tested in practice, finished products and mechanical services are developed and fine-tuned. To achieve the best possible adaptation to the market, Nearsourcing services are

delivered at NOTE’s units in northern Europe and Asia.

For customers, Nearsourcing provides high flexibility in introduc- tion phases, before the product and market is ready for mass production.

Meanwhile, NOTE’s complete picture of the whole product lifecycle, com- bined with unique sourcing capacity, offer excellent prospects to control production and forthcoming compo- nent modifications for positive overall finances.

NOTE is a specialist services provider on the EMs market that

delivers services right through product lifecycles, from design to

after-sales, and from single components to box build products. its

business offering is based on satisfying customer needs optimally

at every link in the value chain—and creating a strong complete

package.

8 NOTE ANNuAl rEpOrT 2009

For NOTE, Nearsourcing is a cost-effi- cient way to introduce its customers to a cohesive production chain that factors in complete product lifecycles.

By seeing the complete picture from the start, many costly mistakes and dead-ends are avoided.

Customers encounter the NPI—

NOTE Product Introduction—concept at Nearsourcing centres. This is a complete business process involving technology, marketing and develop- ment for companies on the verge of launching a new product on the market. NOTE brings experience and knowledge of design, development, testing, production, logistics and after-sales.

NOTE also delivers after-sales services right through product lifecy- cles, such as logistics, distribution, repairs, spare parts management, re-design and maintenance.

control through product lifecycles In its role as business partner, NOTE offers a selection of tools and serv- ices to control costs and production through product lifecycles. This offers unique opportunities to create effec- tive industrial processes and superior control of the arrangement of produc- tion, as well as the timing of product launches tailored to the market. The goal is to provide customers with the best possible overview, creating secu- rity and lower total cost of ownership.

NOTE gives its customers access to an extensive preferred parts data- base, NOTEfied (NOTE Fast Introduction Engineering Database), which is com- pletely unique in terms of its breadth and scope. The database selects those components that are suitable and avail- able on the market. NOTEfied can also be directly linked to customers’ own design systems, which means product

developers and designers can select the right components from the start.

This saves time and money, instead of being forced to exchange components later in the process.

NOTE’s PLM (Product Lifecycle Management) tool provides customers with a product documentation plat- form right through product lifecycles.

The PLM tool also provides support in sourcing processes, offering infor- mation on component’s useful lives from the NOTEfied preferred parts database. It also supports effective version management and can be executed electronically worldwide.

Internal and external stakeholders can access the system.

This combination of a preferred parts database and PLM tool is unique, and especially appreciated by customers with high documentation and traceability standards.

note’s value chain

nearsourcing centres

notefied preferred parts database plm tool

sourcing

cost-efficient production

npI

development production after-sales

services

NOTE’s value chain has four links, which constitute a comprehensive services offering in electronics production and sourcing.

Customers gain assistance on selected parts or can let NOTE deal with everything from development to after-sales services.

nearsourcing business model: Nearsourcing centres Control through product lifecycles Cost-efficient production

IntroductIon operatIons the note share corporate governance Formal annual accounts

It enables effective and reliable version management with first-class control over products’ constituent components.

Because NOTE has a holistic philosophy on industrial processes and lifecycles, box build produc- tion is becoming a more important component of its offering. This means that apart from electronics manufac- ture, NOTE also delivers mechanical engineering services such as cutting machining, plastic injection moulding, thin plate processing and die-casting.

Electronics and mechanical engineer- ing solutions are developed in parallel in close partnership with the customer and different NOTE units.

Cost of materials represents the majority of the total cost of a finished product. Accordingly, component sourcing is highly significant to NOTE’s business for electronics and mechanical engineering. To optimise the group’s sourcing, it is coordinated in NOTE Components, which has sourcing functions in northern Europe, central Europe and Asia. New sourc- ing channels are continuously evalu-

components, screening new vendors and negotiating with existing suppli- ers, cost of materials is continuously reduced. Some sourcing is also co- ordinated through the ems- alliance , which increases sourcing volumes and reduces prices.

cost-efficient production

In collaboration with the customer, production is located where optimal depending on the complete picture of factors like costs, product lifecycles, volumes and geographical final mar- ket. Production is highly integrated with NOTE’s other services, from development to product updates.

NOTE’s production is especially well suited to products with long lifecycles and high rates of change through their lifecycles.

NOTE offers its customers produc- tion at its units in the Nordic region, the Baltics, UK, Poland and China. De- pending on market conditions, other cost conditions or initial development plans, production can be transferred seamlessly and on a quality-assured

ally in recent years, production has migrated eastward because this is where growth is highest. For box build products, NOTE develops electronics and mechanical engineering solutions in parallel in close partnership with the customer at the relevant NOTE units.

Once a box build product is complete, final assembly and packaging is at that NOTE unit with the closest match to the customer’s needs for volumes, costing and geographical location in relation to its final market.

Some customers want global suppliers that can deal with smaller or larger production volumes locally and globally. To satisfy this need, in 2001, NOTE initiated a partnership involving independent electronics pro- ducers across four continents. This multinational network is called the ems- alliance and supplements NOTE’s own production capacity. As a result, NOTE can satisfy its customers’

needs to manufacture products close

to most final markets, while produc-

tion is also cost-efficient. This network

now has members in Brazil, the Philip-

10 NOTE ANNuAl rEpOrT 2009

Market and competitors

the market in 2009

After the heavy downturn triggered by the financial crisis in autumn 2008, the market continued to weaken in spring 2009. The market levelled off through the summer and autumn, and in the last four months of the year, activity was stable but low. There were no signs that the situation would exacerbate further, nor any substan- tial signals of a speedy recovery.

The sharp economic slowdown and the fact that a number of compo- nent suppliers cut output rates caused shortages of certain components.

This had implications such as delivery delays and exceptional price increas- es on isolated items.

market trends, drivers and outlook The EMS market has been in profound transformation over recent years.

The prime drivers have been price pressure on components, the search for cheap labour, a faster production chain from initial idea to sales and robust economic progress in growth regions with the emergence of new final markets as a result. One driver winning ground recently, notably among industrial customers, is a greater willingness to find climate positive alternatives. This basically af- fects all links in the value chain, from different choices in the development phase to transportation. One conse- quence is that increasingly, production is close to final markets.

In Asia, and China especially, high growth spurred on domestic con- sumption. In turn, this is creating new demand for the final products previ- ously manufactured for export to Eu- rope and the US. These new opportu- nities have contributed to a still-faster rate of change on the EMS market, because an increasing number of global industrial corporations are now establishing a long-term presence in Asia. They are building functions right through the value chain, from devel- opment and production to sales and after-sales services. This progress is expected to sustain for the com- ing years. Of the major economies, India is expected to undergo similar progress as China, with more interna- tional investments.

In Europe, the EMS market is assessed to be flat or slowly rising, which means that the primary drivers will remain the pursuit of costs and rationalisation. In geographical terms, this means there is still scope for pro- duction transfers from west to east.

Sector commentator iSuppli esti- mates that the whole EMS market will grow by some 7% annually over the coming years.

outsourcing

NOTE judges that the share of out- sourced production will continue to increase regardless of economic conditions. More and more companies need and want to focus on core busi-

ness. Accordingly, they want a strong, competent partner that is an expert in product development, component management, box build, industriali- sation and after-sales services, for example. By coming to NOTE, custom- ers get access to all this competence, while sharing the costs with other customers. Overall, this reduces capi- tal tied-up and more resources can be used for sales and development, for example.

customer base structure and regional allocation

NOTE offers specialist services and tools right through the chain from development and product control through lifecycles to cost-efficient production and after-sales services close to customers’ final markets.

They are especially well suited for cus- tomers with products that have long lifecycles, high rates of change in this time and that need first-class version management.

NOTE’s customer base is split equally between global corporations active on the world market and local players, whose primary sales base is in northern Europe.

NOTE judges that about a quarter of its global customers will need production in China in the coming years. NOTE started up its opera- tion in China a few years ago, and is very well prepared to cope with production transfers from Europe as NOTE is active in the EMs (electronics manufacturing services)

market. NOTE’s offering has a broader services content than the average EMs vendor, and its customer relationships often feature a significant element of partnership. its operations are in northern Europe and China.

IntroductIon operatIons the note share corporate governance Formal annual accounts

well as starting up new production.

For smaller and medium-sized locally based customers, NOTE has put a big emphasis on creating flexible concepts that suit companies with growth ambi- tions and that want to start up on new markets, primarily in Europe. This cus- tomer category needs services close to development, value-for-money compo- nents and opportunities to locate cost-

efficient production at a reasonable distance from their final market.

NOTE’s offering is also well suited to larger pan-Nordic players that have high traceability and documentation standards.

Customers signing major contracts in the year include Kongsberg Defence

& Aerospace, Radi Medical Systems, Radiocrafts AS and Telespor AS.

Overall, NOTE is well positioned to address the needs of customers that want to grow in Europe and Asia.

competitors

Some of NOTE’s major competitors active on the Nordic market are Partnertech, Kitron and Enics.

Source: iSuppli 0 20,000 40,000 60,000 80,000 100,000 120,000

EMS sales by geographical region, USD m

0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000

Global EMS sales by technology in 2007, USD m

2007 2008 2009 2010 2011 2012 2013

2007 2008 2009 2010 2011 2012 2013

Asia Americas Europe, Middle East Other

Data

Mobile telecom

Fixed line telecom

Industrial electronics

Consumer electronics

12 NOTE ANNuAl rEpOrT 2009

What they are saying about NOTE

A selection of media quotes on NOTE in 2009:

atlas copco transfers production profitably

“We wanted to cut total cost of ownership while still maintaining the same quality. Apart from actual production, we also wanted to cut our costs of transportation and create an environmental gain. If we transferred electromagnetic production to China, we would also get more flexibility and closeness to production, and not least, to our final market. In reaching our decision, it was vital that NOTE had a complete and functional production unit. Their transfer process was thoroughly planned, tried and tested in practice and quality-assured. They satisfied our standards point by point. I regard the Chinese as very thorough and used to working with quality assurance.”

Peter Bódizs, Strategic Global Purchasing Manager for Atlas Copco Surface Drilling Equipment’s electrical range commenting on transferring production to NOTE’s unit in China. Elektronik i Norden, 9 October 2009.

radi medical systems selects note for its wireless blood pressure gauge

“Our biggest priority was finding a supplier that satisfies all our quality standards. NOTE has the overall technology to manage our products, and also has good working methods that really give us the attention we need to maintain high quality. The possibility of volume production in China is also a plus.”

Jonny Munther, Technical Purchasing Manager, Radi Medical part of the St. Jude Medical group, on the selection of NOTE as a supplier. Elektronik i Norden, 5 October.

radiocrafts of norway designs and produces sophisticated wireless communication modules

“The reasons we chose NOTE as our supplier were closeness and flexibility. The first phases of this work will be in close collaboration with us, which is time and cost-efficient. We will then locate volume production where it is best for us.”

Peder Martin Evjen, President of Radiocrafts, commenting on what decided their selection of NOTE as a supplier. evertiq, 23 June.

tour & andersson sells advanced products worldwide that balance flows in heating and cooling systems

“It was important for us to find a vendor that maintains high quality, stays in control, has an impact at the supplier level and has the pro- duction capacity for higher volumes in regions where costs favour us. NOTE is a partner that has world-class international and local production—simply put, it has the whole package.”

Joakim Merstrand, Strategic Buyer at Tour & Andersson, reviews the company’s selection criteria when choosing a production partner.

evertiq, 24 mars.

NOTE conducts regular customer satisfac- tion surveys, whose results are linked directly to ongoing improvement work.

Here are a few results:

Production. 87.3% of NOTE’s customers are satisfied or very satisfied with the quality of their products.

Service. 83.4% of NOTE’s customers are satisfied or very satisfied with their quality of service.

The whole picture. 89.5% of NOTE’s customers are satisfied or very satisfied with NOTE in an overall perspective.

delivering with high quality

IntroductIon operatIons the note share corporate governance Formal annual accounts

Risk management

risk exposure and management

customers

The risk that a customer leaves NOTE or cannot fulfil its obligations.

NOTE has over 300 active accounts, the 15 largest in sales terms represent some 50% of its sales. In most cases, NOTE manufactures a range of products for each customer. Usually, customers choose to place all their production of one product with the same supplier, so they can limit material commitments and risks. NOTE’s production volumes are closely linked to which products, and where in product lifecycles, the customer’s products lie. Accordingly, sales variations can be significant for individual customers. The demand for NOTE’s services offering varies depending on economic conditions. In recessions, there is usually a high focus on cost-cutting, while in upturns, there is high demand for services that help reduce time to market.

environmental risks

The risk that operations cause damage to the environ- ment and costs for complying with new more stringent environmental directives.

Unlike the rest of heavy industry, NOTE’s business has a fairly limited environmental impact. To comply with ap- plicable environmental legislation, NOTE has transferred to lead-free production just like the rest of the electronics industry.

liability

Risks in addition to the above environmental risks where the group can be liable for payment due to commit- ments in its business.

NOTE’s role includes it being a collaboration partner to its customers, but not a product owner. Accordingly, NOTE’s responsibility includes conducting production and component selection according to instructions agreed with the customer. Requirements for documentation are usually extensive and can be regarded as complex. Where possible, NOTE arranges insurance cover against damages caused by production faults.

economic and seasonal variations The EMS market is relatively young and usually considered fairly cyclical. Of the somewhat larger traditional EMS companies, there are few, if any, that have succeeded in maintaining good profitability through a business cycle.

NOTE’s forward-looking Nearsourcing initiative is intended to promote profitable sales growth in combination with low investment and overhead costs in high-cost countries.

production downtime

Downtime in production affecting deliveries to custom- ers and causing extra costs.

Because NOTE conducts advanced manufacture of electronics, it is subject to high standards for efficient processes and state-of-the-art production equipment. The risk of production downtime is limited by production being of a similar nature across several of the group’s units. Accordingly, NOTE can transfer production from one unit to another, limiting its risks for long-term production downtime. NOTE has insurance cover against damage caused by production downtime.

competence

The risk of not possessing sufficient competence in all parts of business.

NOTE’s sophisticated activities require high technical and other competence across several segments. It conducts major initiatives to continuously develop the competence of its people.

It

IT-related disruptions can cause production downtime, loss of invoicing or reduced efficiency in administration and sales.

Considering the extensive collaboration between NOTE’s Swedish and foreign units, NOTE is subject to extensive requirements for well-functioning IT systems. A long-term initiative on shared IT systems for the group’s larger units was started in 2009.

capacity risk

The risk of not having sufficient capacity in plants.

After building the group’s production capacity in low-cost countries, NOTE can be considered to have satisfactory production capacity.

materials

Price and supply of materials.

The pricing of and access to electronic components and other production materials vary significantly depending on market conditions. Within NOTE Components, the company has built a group-wide organisation to deal with sourcing matters effectively.

Inventories

The risk of components and production materials not being consumed, and thus losing value.

NOTE has substantial inventories corresponding to some 15–20% of sales. Sourcing on its customers’ behalf is normally formalised through agreements with customers. Considering the complexity of electronics production and demand, avoiding the incidence of obsolescence in inventories is challenging. Accordingly, NOTE collaborates closely with its customers to limit the risks in its inventories.

operational risks

risk exposure and management

currency

Currency risk means that a fluctuation in exchange rates can affect the group’s profit, cash flow or balance sheet negatively.

Against the background of an increasing share of value-added being generated in foreign units and the purchasing of electronic components and other production materials being largely in foreign currencies (EUR/USD), NOTE has ex- tensive currency management. With the aim of limiting currency risks, NOTE trades in instruments including currency forwards and currency options.

customer credit

The risk that a customer is unable to pay its debt to NOTE.

NOTE’s business model includes it serving as a long-term partner to its customers. Evaluations and creditworthiness checks are run on new and existing customers. Ongoing financial reporting includes close monitoring of outstanding accounts receivable—trade.

Financing NOTE has a substantial need for external finance, primarily linked to the working capital of operations. Different

Financial risks

14 NOTE ANNuAl rEpOrT 2009

Quality, environment and ethics

the complete picture raises standards

Taking an integrated approach to dif- ferent CSR (corporate social responsi- bility) issues is crucial to how effective overall results are. These matters involve everything from helping customers to select components with good environmental and quality per- formance from the start, to locating manufacture close to final markets, so that the adverse environmental impact of transportation is minimised.

In tandem with its work on improving customers’ impact on the environ- ment and society, NOTE conducts its own activities to minimise the group’s negative impact on its surroundings.

NOTE works on continu- ous improvements in close collaboration with customers.

Quality policy and working methods NOTE creates competitiveness for its customers by delivering the right quality at the right time and at the right price. To achieve this, NOTE continuously develops and improves its services to always address the customer’s standards and expecta- tions. Improvement work is through a flexible organisation with the right competence. The organisation works towards shared and traceable goals, that can be quickly tailored to the customer’s standards. For example, delivery precision and delivery quality is continuously measured for custom- ers and suppliers.

NOTE utilises a portfolio of quality- assurance tools and methods whose origins lie in the quality systems of the automotive and pharmaceutical industries.

ISO 9000 is a series of internation- al standards used to direct the focus of corporate quality management systems. 11 of NOTE’s units have ISO 9001 certification. A complete list of the certification of its various units is at www.note.eu. Using its quality management system, NOTE can trace errors and continuously develop the company’s methods and processes.

NOTE ensures its work is function- ing through regular audits conducted by internal and external auditors. An external party verifies and certifies its management system.

customer claims

In the first quarter of 2009, NOTE re- ceived 4,300 claims per million units.

In the fourth quarter, the correspond- ing figure was 2,300, a 46% improve- ment in the year.

environmental policy and working methods

NOTE will strive for long-term and sustainable development by producing the minimum possible environmental impact. NOTE shall comply with, or exceed, applicable environmental legislation, work on continuous improvement and maintain an updated environmental policy.

NOTE endeavours to achieve long-term sustain- ability and production with low environmental impact.

To reduce its environmental impact, NOTE’s production units endeavour to achieve continuous improvements.

These plants sort waste at source and measure components with an environ- mental impact such as electrical items and consumables. Other parts of operations also embed environmental considerations as a natural part of ac- tivities like purchasing, waste sorting and transportation, for example.

sustainability issues are integrated into NOTE’s business operations and affect all units. segments include quality issues, environmen- tal impact, business ethics and human rights. sustainability work is decentralised, with co-ordination using shared goals, guidelines and key indicators. Because NOTE has multiple business partners, it is vital that the company’s ambitions are also reflected in the standards it applies to subcontractors.

NOTE’s delivery precision has improved in recent years—it was 90% in 2009.

This can be considered high in the high mix/low volume segment, as cor- roborated by the customer satisfaction surveys NOTE regularly conducts.

delivery precision

IntroductIon operatIons the note share corporate governance Formal annual accounts

This work is decentralised, and the environmental policies and certifica- tion of individual units is stated at www.note.eu. Environmental work also follows international ISO guide- lines. The main series in the environ- mental segment is ISO 14000, and eight of the group’s units have ISO 14001 certification. NOTE’s envi- ronmental management system is audited in the same way as its quality work, with the aid of internal and external inspectors. Certification is awarded by an external party.

note—winner of the municipality of norrtälje’s environmental award The Municipality of Norrtälje cares for the environment and recognises those companies that help create a cleaner and more resource-efficient Municipality. When, in April 2009,

the Municipality presented its first environmental award, NOTE Norrtelje was recognised for its work in a series of environmental segments.

NOTE Norrtelje started methodi- cal environmental work in 1996, and achieved ISO certification in 1997.

For example, all waste is sorted at source, with nothing deposited in landfill. Electronic waste is sold, glass and recycled paper collected, cor- rugated board and other packaging is compacted to minimise the amount of waste transportation. This work features continuous rationalisation and improvement.

NOTE takes social responsibility.

ethics

NOTE has undertaken to conduct re- sponsible and sustainable operations.

This also includes the company’s social responsibility in all parts of the supply chain. Accordingly, NOTE has prepared a Code of Conduct that is mandatory for NOTE and its subcon- tractors.

The Code of Conduct is based on the UN’s Global Compact Initiative and includes respect of human rights, free- dom of association in trade unions, fair employment, safe working condi- tions, environmental consideration and rejection of all types of discrimina- tion, child labour and corruption.

The complete Code of Conduct is

at www.note.eu.

16 NOTE ANNuAl REpORT 2009

Human resources

Progress in 2009

The financial crisis of autumn 2008 unleashed a situation of dramatically reduced order intake in all of NOTE’s sectors. This resulted in NOTE gearing up the rate of structural changes that had been ongoing for several years, with production gradually transfer- ring to low-cost countries. This work continued right through 2009, and is expected to continue in 2010.

To adapt costs to the new revenue levels, NOTE conducted a thorough overhaul of all the processes at its

units. To reduce personnel expenses, a series of measures were taken which were highly significant to the group’s staff.

The measures taken varied be- tween countries depending on laws, cultures and social security systems.

Notices, temporary dismiss- als and agreements on reduced working-hours were introduced in several units. Agreements on flexible working-hours and temporary employ- ment were used where appropriate.

Several measures will also be applied going forward to create flexibility for variations in order flows and similar circumstances.

Diversity and equal opportunities All NOTE’s employees should feel that they are unique, of equal value and have the prospects to develop accord- ing to their circumstances. Diversity and equal opportunities are not merely internal matters but feature in all work and relationships with customers.

2009 was a challenging year for many of NOTE’s employees. The actions implemented to address the severe economic crisis were implemented with care for those affected.

All NOTE’s employees should be of- fered a working environment that:

is safe and stimulating features trust in the individual builds on mutual respect

complies with laws and ordinances in the segment

Working environment

Human resources 2009 2008

Average number of employees 977 1201

Number of women 470 604

Number of men 507 597

Attendance, % 96.4 95.7

Staff turnover, % 3.6 11.1

All employees of NOTE have a collec- tive responsibility for diversity and equal opportunities issues becoming a natural part of operations.

A good working environment is fundamental for good results at work and a prerequisite for productivity, ef- ficiency and the quality of operations.

Work on the working environment is conducted locally at all NOTE units.

NOTE encourages:

a high level of service that puts the customer in focus

an atmosphere where everyone feels, and takes, responsibility an open climate that creates a

sense of security

an environment that is stimulat- ing, and where all employees take responsibility for their development Leadership

A high rate of change makes good leadership a necessity. NOTE’s basic outlook on leadership is to delegate responsibility as far as possible, while simultaneously creating the right pros- pects for everyone to take greater responsibility.

INTrODucTION OPErATIONs THE NOTE sHArE cOrPOrATE gOvErNANcE FOrmAL ANNuAL AccOuNTs

2009 2008 471 High-cost countries

629 Low-cost countries

687 High-cost countries 518 Low-cost countries

2007 2006

752 High-cost countries 461 Low-cost countries

703 High-cost countries

424 Low-cost countries

employees at year-end

18 NOTE ANNuAl REpORT 2009

Organisation and group management

Organisation

The NOTE group’s parent company and management are located in Danderyd, near Stockholm, Sweden.

The group is organised according to the company’s strategy of a sharp focus on services close to develop- ment and effective production.

Local presence, global co-ordination NOTE has a de-centralised organisa- tional structure with each Nearsourcing centre being responsible for sales and deliveries to its customers.

Nearsourcing centres are also responsible for the smooth function- ing of interaction with other group functions, collaboration partners and

subcontractors. Similarly, there are dedicated functions responsible for delivering a strong offering in develop- ment and industrialisation phases.

NOTE’s Nearsourcing centres and Industrial Plants collaborate closely with each other so they can deliver high quality and create profitable production that matches customers’ needs.

NOTE is organised to create quality in all contexts so that custom- ers get the right services and production alternatives, in the right place and at the right time.

Marketing & sales support Nearsourcing centres

Sweden Norway Finland UK Technical

services

Anders Andersson

Vice President, Nearsourcing.

Born in 1965.

Employed by NOTE since 1994.*

NOTE holdings: 100 shares.

25,000 options.

* Employment with NOTE before 2000 was in subsidiaries.

IntrOductIOn OperAtIOns the nOte shAre cOrpOrAte gOvernAnce FOrmAL AnnuAL AccOunts

Finance & IR

Poland

Lithuania China Mechanics

Estonia

Quality CEO

Industrial Plants

Components

göran Jansson

Acting CEO and President.

Born in 1958.

Board member of NOTE since 2007.

NOTE holdings: 50,000 shares, 0 options.

henrik nygren

CFO.

Born in 1956.

Employed by NOTE since 2006.

NOTE holdings: 10,000 shares, 60,000 options.

mikael ekholm

Vice President, Industrial Plants.

Born in 1962.

Employed by NOTE since 2009.

NOTE holdings: 0 shares, 0 options.

20 NOTE ANNuAl rEpOrT 2009

Board of Directors and Auditors

Bruce grant

Chairman of the Board since 2007.

Born in 1959.

Education: ThD Cand. and B.Sc. (Econ.) NOTE holdings: 487,500 shares.

other significant assignments:

Chairman of the Board of Human Care and Robust. Board member of Stille and the Swedish-American Chamber of Commerce in New York.

professional experience:

Former Board member and adviser on prof- itability improvements and more efficient capital structures for Kinnevik, Korsnäs, Metro, Transcom and Tele2 (Chairman).

håkan gellerstedt

Board member since 2007.

Born in 1947.

Education: B.Sc. (Eng.) NOTE holdings: 4,000 shares.

other significant assignments:

Management Consultant, CEO and proprie- tor of SARL MTL Consultants, France, Partner of Rotationer Ltd.

professional experience:

Former management consultant at Indevo and Interpares, assignments including global production strategies, profitability enhancement packages, business and development strategies for Swedish and international companies.

göran Jansson

Deputy Chairman since 2008.

Board member since 2007.

Born in 1958.

Education: B.Sc. (Econ.) NOTE holdings: 50,000 shares.

other significant assignments:

Acting President and CEO of NOTE.

Chairman of the Board of Bankit, Nwise and Opax AS. Board member of Axis Communications, Human Care, Robust and Stille.

professional experience:

Former Acting CEO and CFO of Assa Abloy, also head of Sourcing and R&D.

per-arne sandström

Board member since 2007.

Born in 1947.

Education: Senior high school technology graduate.

NOTE holdings: 20,000 shares.

other significant assignments:

Chairman of the Board of Infocare and P-A Sandström Consult. Board member of Cellmax, Incentive and Saab.

professional experience:

Former Deputy Group Chief Executive and COO of Ericsson.

göran gezelius

Board member since 2009.

Born in 1950.

Education: B.Sc. (Econ.) and B.Sc. (Eng.) NOTE holdings: 0 shares.

other significant assignments:

Chairman of the Board of Sekab.

Board member of Alimak Hek Group, AMF Pension, Teknikföretagen and Tobii Technology.

professional experience:

CEO and President of Gunnebo, EVP of Atlas Copco and Business Area Manager of Sandvik.

Bo andersson

Board member since 2009.

Born in 1955.

Education: B.A., officer training, leadership program at Harvard University.

NOTE holdings: 0 shares.

other significant assignments:

CEO and Chairman of the Board of OJSC GAZ.

professional experience:

Member of GM’s group management, Head of Production Planning, Logistics, Quality and Purchasing. Former member of group managements of Opel and Saab Automobile.

göran sigfridsson

Board member since 2009.

Born in 1948.

Education: B.Sc. (Eng.) NOTE holdings: 1,000 shares.

other significant assignments:

Chairman of the Board of Svep Design Center. Board member of Borgestad Industries, HMS Networks and Regional Board of Southern Scania for the Southern Swedish Chamber of Commerce.

professional experience:

CEO and President of Beijer Electronics.

IntroductIon operatIons the note share corporate governance Formal annual accounts

employee representatives

auditors Jimmy almevind

Board member since 2009.

Born in 1977.

Machine Operator. Representative, IF Metall.

Main education: Senior high school graduate, electronics.

NOTE holdings: 0 shares.

magnus Brändström

Born in 1962.

Authorised Public Accountant and Partner of PwC.

Senior Auditor.

anders magnussen

Born in 1966.

Authorised Public Accountant and Partner of PwC.

Öhrlings PricewaterhouseCoopers AB was elected Auditor of NOTE AB by the AGM 2008 for a term of four years.

christoffer skogh

Board member since 2009.

Born in 1975.

Account Manager. Representative, Unionen.

Main education: Senior high school graduate, social sciences.

NOTE holdings: 500 shares.

andreas ollén

Deputy since 2009.

Born in 1981.

Production Manager. Representative, Unionen.

Main education: Senior high school graduate, electronics.

NOTE holdings: 0 shares.

Holdings include related party holdings.

22 NOTE ANNuAl rEpOrT 2009

Five-year summary

seK m

summary consolidated Income statement 2009 2008 2007 2006 2005

Net sales 1,200.1 1,709.5 1,743.8 1,741.5 1,504.1

Gross profit/loss 26.4 123.0 224.6 206.5 54.2

Operating profit/loss –90.8 –3.8 111.9 103.6 –64.3

Profit/loss after financial items –97.9 –14.4 103.8 96.2 –73.1

Profit/loss after tax –81.0 –13.1 78.2 68.6 –55.7

summary consolidated Balance sheet assets

Non-current assets 234.6 247.1 200.6 167.7 184.5

Current assets 518.5 701.2 747.5 720.5 627.3

total assets 753.1 948.3 948.1 888.2 811.7

eQuItY and lIaBIlItIes

Equity 209.9 294.9 327.4 268.1 205.1

Non-current liabilities 30.5 98.4 140.1 157.9 107.9

Current liabilities 512.7 555.0 480.6 462.2 498.7

total eQuItY and lIaBIlItIes 753.1 948.3 948.1 888.2 811.7

cash flow, group

Cash flow from operating activities 42.6 83.2 48.3 46.8 69.9

Cash flow from investing activities –18.7 –58.1 –48.8 –22.0 –79.5

cash FloW BeFore FInancIng actIvItIes 23.9 25.1 –0.5 24.8 –9.6

Cash and cash equivalents at beginning of period 35.9 38.5 18.8 9.1 20.1

Cash flow before financing activities 23.9 25.1 –0.5 24.8 –9.6

Cash flow from financing activities –34.6 –30.1 19.8 –15.0 –1.5

Exchange rate difference in cash and cash equivalents –0.8 2.4 0.4 –0.1 0.0

cash and cash eQuIvalents at end oF Year 24.4 35.9 38.5 18.8 9.1

consolidated key figures Margins

Operating margin, % –7.6 –0.2 6.4 5.9 –4.3

Profit margin, % –8.2 –0.8 6.0 5.5 –4.9

Returns

Return on operating capital, % –18.8 –0.7 21.4 22.5 –14.3

Return on equity, % –32.1 –4.2 26.3 29.0 –23.7

Capital structure

Operating capital (average) 483.6 548.7 521.9 459.9 449.1

Interest-bearing net debt 239.9 247.2 246.3 223.4 233.7

Equity to assets ratio, % 27.9 31.1 34.5 30.2 25.3

Net debt/equity ratio, multiple 1.1 0.8 0.8 0.8 1.1

Interest coverage ratio, multiple –10.0 –0.1 7.1 12.3 –6.1

Capital turnover rate (operating capital), multiple 2.5 3.1 3.3 3.8 3.3

Market capitalisation

Market capitalisation at end of period 205 217 698 808 614

Employees

Sales per employee, SEK 000 1,228 1,423 1,489 1,545 1,371

Calculations of returns have been adapted to the Swedish Society of Financial Analysts’ recommendations, and have also been re-stated for the comparative years 2006–2005.

IntroductIon operatIons the note share corporate governance Formal annual accounts

Financial definitions

market capitalisation

Share price multiplied by total number of outstanding shares

equity per share

Equity as a percentage of the number of shares at year-end.

attendance

Attendance as a percentage of regular working-hours.

average number of employees Average number of employees calcu- lated on the basis of hours worked.

rate of capital turnover (operating capital), multiple

Sales divided by operating capital.

net investments in property, plant and equipment

Investments in property, plant and equipment for the year, excluding acquisitions of assets and liabilities, less disposals and obsolescence for the year.

net debt/equity ratio, multiple Interest-bearing net debt divided by equity.

sales per employee

Net sales divided by the average number of full-time employees.

operating capital

Total assets less cash and cash equiv- alents, non-interest bearing liabilities, provisions and minority interest.

staff turnover

Number of employees whose employ- ment was terminated voluntarily in the year as a percentage of the average number of employees.

earnings per share

Profit after tax as a percentage of the average number of shares.

return on equity

Net profit for the year as a percentage of the average equity for the most recent twelve-month period.

return on operating capital Operating profit as a percentage of the average operating capital for the most recent twelve-month period.

Interest-bearing net debt

Interest-bearing liabilities and provi- sions less cash.

Interest coverage ratio, multiple Profit/loss after financial items plus financial expenses divided by financial expenses.

operating margin

Operating profit/loss as a percentage of net sales.

sickness absence

Sickness absence as a percentage of regular working-hours.

equity to assets ratio

Equity as a percentage of total assets.

profit margin

Profit/loss after financial items as a

percentage of net sales.

24 NOTE ANNuAl rEpOrT 2009

The year 2009 was NOTE’s fifth on the stock market. The number of shareholders increased by 27% in the year to 2,475 (1,954).

trading

Quotation NASDAQ OMX Sweden Nordic List

Segment Small Cap

Sector Information Technology

Short name NOTE

ISIN code SE0001161654

Number of shares as of 30 December 2009 9,624,200 share price performance

NOTE’s share price fell by 5% in the year to a closing price of SEK 21.30 (22.50). The high in the year of SEK 28 was on 12 October. The low of SEK 15 was on 5 March. In the year, the OMXSSCPI rose by 62%.

At year-end, NOTE’s market capi- talisation was SEK 205 (217) m.

turnover

Share turnover was 4,978,231 shares, or a rate of turnover of 51%. The aver- age turnover of NOTE’s share in 2009 was 19,834 shares.

dividend

NOTE considers that the future growth and profitability potential of its operations are substantial. Against the background of planned structural measures, the Board is proposing to the AGM that no dividends are paid for the financial year 2009. This is a departure from NOTE’s stated finan- cial goal of dividends adapted to the average profit level during a business cycle, and will be 30–50% of profit after tax for the long term.

No dividends were paid for the financial year 2008.

Share data and shareholders

0

Share turnover, 000 per month

2009 2008

2007 2006

2005 2004

0

OMX Small Cap PI

NOTE ©

400 800 1,200 1,600 2,000 2,400 2,800 3,200

20 40 60 80 100 120 140 160

IntroductIon operatIons the note share corporate governance Formal annual accounts

ten largest shareholders as of 30 december 2009, by holding

name no. of shares

prop. of capital/

votes, %

Catella Fondförvaltning 1,212,040 12.59

Kjell-Åke Andersson with family 694,104 7.21

Banque Carnegie Luxembourg SA 577,700 6.00

Avanza Pension 522,034 5.42

Livförsäkrings AB Skandia 518,800 5.39

Garden Growth Capital LLC 487,500 5.07

MGA Placeringar AB 451,100 4.69

Verdipapirfond ODIN Sverige 431,653 4.49

Nordnet Pensionsförsäkring AB 330,803 3.44

Senior management 220,900 2.30

total 5,446,634 56.60

division by size of holding as of 30 december 2009

size of holding no. of share-

holders no. of shares

prop. of capital/

votes, %

1–500 1,602 314,786 3.27

501–2000 563 652,678 6.78

2,001–5,000 168 592,334 6.15

5,001–20,000 98 994,650 10.33

20,001–50,000 16 497,354 5.17

50,001–500,000 23 3,835,733 39.86

500,001–1,000,000 5 2,736,665 28.44

total 2,475 9,624,200 100.00