An n uAl R e p o Rt 200 8
A bRief look At pARtneRtech
PartnerTech develops and manufactures products on behalf of leading businesses in the market areas of Defense and Maritime, Industry, Information Technology, MedTech & Instrumentation, CleanTech and Point of Sale Applications.
PartnerTech's role with its customers is to provide production 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 systems integration.
Those qualities allow us to create solutions that strengthen the customer's competitiveness. Among our key priorities are prox- imity to our customers, top quality, reliable delivery, short lead- times, and customer satisfaction.
PartnerTech has approximately 1,600 employees at plants in Sweden, Norway, Finland, Poland, the UK, the United States and China. PartnerTech AB (www.partnertech.com), the parent company, is headquartered in Malmö, Sweden and listed on the OMX Nordic Exchange Stockholm.
“SucceSS breedS SucceSS”
Promoting the success of our customers ensures that we will be successful as well.
“You can count on uS”
We keep our promises and always deliver superior quality.
“We are one team”
We have clear roles and help each other achieve common objectives.
“Straight to the point”
We communicate openly and modestly, showing respect and appreciation for each other.
“i'll do it”
We act in a way that is good for the company.
“We are coSt-WiSe”
Common sense dictates that we question unnecessary costs and look for more creative solutions.
links to success vision
Our vision is to be the obvious choice for business-to-business contract manufacturing.
Mission
Our mission is to strengthen the competitiveness of our customers and their products through technical excellence and proven manufacturing skills.
business concept PartnerTech develops and manufactures products under contract for companies with a leading position in the European market within
selected business-to-business sectors. As a contract
manufacturer, we enhance the profitability and
competitiveness of our
customers by delivering
services throughout the value
chain from components
to integrated systems
and complete products.
custoMeR offeRing
custoMeR centeRs
centeRs of excellence
PartnerTech is a strong contract manufacturer for both big and small product owners, primarily in the business-to-business sector.
By turning over the optimal degree of responsibility to us, customers reduce their total cost per
manufactured unit and shorten the time from product concept to market launch.
In order to ensure the best possible service, PartnerTech has set up local customer
centers in each market where it operates. That allows us to satisfy the desire of our customers for an ongoing dialog about technology and the market.
Within its particular discipline, each Center of Excellence is in charge of tracking international and market trends, as well as pursuing production development, technological advances and investments on behalf of other group units.
In other words, the Centers of Excellence serve as models and provide technological leadership. The goal is for PartnerTech to boost the competitiveness of its customers in all areas and enable them to more fully benefit at each link in the value chain.
PartnerTech offers services throughout the value chain and a product's life cycle. The extent to which
customers collaborate with PartnerTech is completely up to them. Many of them start off by taking advantage
of particular services, turning over greater responsibility as they grow comfortable with the relationship.
c o n t e n t s
2 A Brief Look at PartnerTech 5 2008 at a Glance
6 A Word from the CEO 9 The Market
14 Service Offering and Market Areas 19 Strategy and Targets
20 Quality Assurance and Environmental Efforts 22 Employees and Values
26 2008 in Brief
28 Share and Shareholders 30 Corporate Governance 32 Five-year Summary 34 Management Report
37 Proposed Appropriation of Profit 38 Risk Management
40 Income Statement
41 Comments on the Income Statement 42 Balance Sheet
44 Cash Flow Statement 45 Shareholders’ Equity
46 Comments on the Balance Sheet and Cash Flow Statement 47 Accounting Policies 50 Notes
60 Auditors’ Report 61 Definitions 62 Board of Directors 64 Group Management 66 Addresses
67 Annual General Meeting 67 Financial Information 2009
4 C O NTE NTS
200 8 AT A G LAN C E 5
2008 At A glAnce
The action and change program that PartnerTech launched in 2007 was implemented in 2008.
As a result, the company's operations and organization were subject to a series of measures aimed at improving profitability and customer service.
• Net sales were SEK 2,529.0 million (2,643.6).
• The operating profit rose to SEK 28.5 million (-17.7).
• The profit after tax increased to SEK 5.2 million (-24.8).
• Earnings per share after tax increased to SEK 0.41 (-1.96).
• The Board proposes that the annual general meeting not distribute a dividend for the 2008 fiscal year (no dividend for fiscal 2007).
• The equity/assets ratio was 39.6% (38.4).
• Long-term financial targets were adjusted.
KeY ratioS
amounts in SeK million (unless otherwise stated)
20082007 2006 2005 2004
Net sales 2,529.0 2,643.6 3,057.2 2,013.9 1,737.6
Operating profit/loss 28.5 -17.7 180.0 88.0 73.5
Operating margin, % 1.1 -0.7 5.9 4.4 4.2
Return on operating capital, % 3.1 -1.8 20.0 12.5 13.5
Equity/assets ratio, % 39.6 38.4 36.6 35.2 33.7
Average no. of full-time employees 1,670 1,886 1,747 1,369 1,266
SEK million
2 000 1 750 1 500 2 250
2004 1 250
1 000 750 500 250
0 -8
-6 -4 -2 0 2 4 6 8
%
Net sales, SEK million Operating margin, %
12
2005 2006 2007 2008
2 500
10
2 750 14
3 000 3 250
16 18
net SaleS and operating margin
MSEK
1 200 1 000 800 600 400 200 0
Industry/Telecom Terminals/Machine Solutions Medical Equipment
2004 1 400 1 600
2005 2006 2007 2008
net SaleS bY buSineSS unit
rune glavare preSident and ceo, partnertech ab
A WOrD FrOM THE CEO
6 A WO r D F r O M TH E C EO
A stAble foundAtion on which to build
Shortly before PartnerTech embarked on its
2008 fiscal year, we informed the market of an
action program that was needed to render our
operations more cost-effective and adapt them
to current sales volumes. The measures
targeted cost savings of SEK 100 million on
an annual basis. We accomplished what we
set out to do. Despite the global financial crisis
and an economic downturn that reduced sales
volumes for both us and others, we implemented
the changes that we had announced and
consistently charged the costs directly to our
income statement.
Although PartnerTech has no crystal ball about the direction of the global economy, the changes it has adopted provide it with a stable base and confidence in the future. There is little doubt that customers need to develop new products even during economic downturns and want to manufacture them as cost-effectively as possible. That points to more contract manufacturing assignments for PartnerTech, whose total offering makes it an attractive collaborator for business-to- business product owners. Our efficient performance, wide- ranging services, local customers centers and options for low-cost production are particularly appealing.
meaSureS taKen in 2008
PartnerTech's action program in 2008 involved both finan- cial savings and a greater focus on performance, joint pro- cesses and technology. During the year, we divested smaller units, streamlined our organizational structure and contin- ued to make our operations more efficient. Streamlining is important. A company shouldn't try to do everything, but concentrate on what it is truly good at.
We also took additional steps toward great uniformity and technological expertise in our manufacturing proces- ses. A joint, overarching structure now applies to all units.
Moreover, we are continuing to build up our four Centers of Excellence to spur production and technological develop- ment throughout the group. The idea is to ensure that it is easy to relocate production among our units in order to offer customers the competitiveness and flexibility required to meet their varying needs.
Furthermore, we boosted efficiency by means of cost- effectiveness measures, not to mention improved logistics and processes. As a result, our operations are now properly sized to handle current sales and production volumes.
Last but not least, we modified our organizational struc- ture to upgrade the customer service we can provide. One move was to decentralize our sales organization, integrating it with our customer centers and production units. That has made us more customer-oriented, which has not gone un- noticed. A number of customers and employees have said how much they appreciate the new approach.
Although the 2008 action program has been signed, sealed and delivered, we will continue to pursue change processes in order to strengthening our offering and cus- tomer service.
the cuStomer Service that We noW provide
As a more production-oriented company, PartnerTech is now focused on delivering agreed-upon quality and per- formance in every respect. If we are unsure about whether we can meet a customer's needs, we will decline an as- signment. In the past, our sales effort has occasionally been
too possibility-driven. These days we are more selective and look closer at each potential project.
PartnerTech delivers customer value not only by cost- effective and flexible production, but – in line with the wishes of many customers – by offering supplemental services throughout a product's value chain. For instance, we often participate in a customer's product development effort, not to mention our unique method for rendering more cost- effective the manufacture of new and existing products. In the same spirit, we are building large additional distribution centers around the world to accommodate the demand among many customers for our logistics and after-sales services. To more fully describe our company in its role as a production partner, I should also mention that we have a strong strategic purchasing function with a global supplier network. That is important, given that the choice of materials and the purchasing of components has a major impact on the total costs associated with manufacturing a product. In other words, we offer a series of value-creating services while contract manufacturing remains our core activity.
development of our induStrial Structure
PartnerTech's industrial structure is based on the principle of proximity to customers and their markets. Our local customer centers, which take care of all communication with the companies that contract our services, ensure that the principle is consistently applied. To meet customer needs for low-cost, large-scale production, PartnerTech operates a plant in Poland, as well as maintaining an office and highly advanced manufacturing collaboration in China.
Because such needs are clearly growing, we now plan to expand our offering in both Eastern Europe and Asia.
Given that Partner- Tech's units are similarly structured, it is easier to relocate production among them. The choice of one plant does not have to be made once and for all. A product is commonly tested and manufactured locally to start out with and trans- ferred to a low-cost
country once volumes increase. Toward the end of the product's life cycle, local production or the use of a cus- tomer center to handle logistics and distribution near the customer's market may again be in order.
Large and complex products are not necessarily suit- able for remote production. Such products often require PartnerTech and the customer to share skills, which means
A WO r D F r O M TH E C EO 7
pARtneRtech's
industRiAl
stRuctuRe is
bAsed on the
pRinciple of
pRoxiMity to
custoMeRs And
theiR MARkets
8 A WO r D F r O M TH E C EO
that the total cost is higher if long-distance transport is involved. Environmental factors must also be taken into consideration.
Knowing that PartnerTech's local customer center is always in charge of the product regardless of where it is manufactured provides customers with a sense of security.
A customer never has to worry about cultural and other differences but selects the customer center that offers appropriate skills and geographic location.
neW marKet areaS
As of 2009, PartnerTech's existing customer base is broken down into six market areas: Defense and Maritime, Industry, Information Technology, MedTech & Instrumentation, Clean- Tech and Point of Sale Applications.
The categorization is more revealing of the areas in which PartnerTech actually operates. Customers can more readily identify the ways that we are able to strengthen the competitiveness of a particular product. Meanwhile, PartnerTech is better positioned to focus on the important factors in a specific market area and find synergies.
The breakdown also illustrates differences among the areas when it comes to customer needs, skills, economic cycles and business logic. Those differences provide greater uniformity for our business given that needs vary over time and across cycles.
Nevertheless, the ability to step on both the acceler- ator and brake is a prereq- uisite for survival. I person- ally find it highly stimulat- ing to confront that chal- lenge, and PartnerTech has demonstrated considerable strength when faced by difficulties throughout its 11 years as a listed com- pany. Getting to know the businesses of our custom- ers and supplying performance ensures that we will have a less bumpy ride. The adoption of new procedures in 2008 to better monitor plant performance and capacity utilization contributed to that effort.
challengeS and opportunitieS
The contract manufacturing sector grew slower in the second half of 2008 in the wake of the global financial crisis and recession. Partly because PartnerTech has very few customers in particularly hard-hit industries such as consumer products, telecom and automaking, we did rela- tively well during the year.
The recession will no doubt have a palpable impact on many contract manufacturers. For that very reason, the fact that PartnerTech now has a solid platform from which to proceed is fundamental to our prospects. We have longstanding experience of
taking on major challenges, as well as a flexible org- anization that can respond quickly.
Fortunately, extraordinary times also create new op- portunities. Additional pro- duct owners will certainly discover that they can be-
come more competitive by focusing on their core oper- ations and turning their production over to contract manu- facturers like PartnerTech.
Furthermore, a number of small and medium-sized con- tract manufacturers with weak balance sheets will be look- ing for purchasers or partners, so the recession may very well encourage more restructuring deals. We are remaining attentive and waiting for the right occasion to emerge.
Compared with our competitors among regional players, PartnerTech offers a broad range of services and produc- tion, along with wide geographic coverage. For instance, we are still the only contract manufacturer in this category that operates in the United States. We are among the biggest companies in this category and are striving to retain our lead while further improving the performance and level of service available to our customers.
PartnerTech's direction has been staked out. By means of enhanced processes, upgraded purchasing routines and greater market presence, out goal for 2009 is to strengthen our customer service offering. Finally, we want to broaden our logistics and after-sales services and seek new pro- duction opportunities, particularly in Eastern Europe but also in Asia.
rune Glavare
President and CEO, PartnerTech AB
thRoughout its 11 yeARs As A listed coMpAny, pARtneRtech
hAs deMon-
stRAted
consideRAble stRength
when fAced by difficulties
we hAve A flexible
oRgAnizAtion
thAt is Able
to Respond
quickly
Turning to a contract manufacturer such as PartnerTech is a logical step. Many product owners find it easier, and frequently more economical, to outsource production (perhaps other links in the value chain as well) so that they can devote their resources to application development, technological upgrades and responsiveness to the needs of the market. The resulting division of responsibility frees up time, energy and capital that can be used to promote growth and expansion.
TH E MAr K ET 9
A MARket in the pRocess of developMent
global and regional plaYerS
Contract manufacturers fall into two main categories.
GLOBAL PLAYErS
The few companies that belong to this category generally manufacture products and electronic components for the computer, consumer and telecommunications industries where very large-scale production is the name of the game. They require an ample number of plants in low-cost countries and a global supply chain.
rEGIONAL PLAYErS
These small and medium-sized companies primarily manu-
facture products or electronic components for the business-
to-business market, usually on a more limited scale. They
operate regionally in the sense that one or more countries
may be involved. Such contract manufacturers often focus
on a small number of specific segments and adapt their
offering accordingly. The category consists of only a few
larger companies (one of which is PartnerTech) that can
offer a broad range of production and service options while
often participating in product development efforts. These
large companies can manufacture in a low-cost country
when appropriate and have a more extensive supply
chain and purchasing network than smaller players, which
manufacture exclusively at the local level in proximity to
their customers.
10 TH E MAr K ET
partnertech'S poSition
As one of Europe's leading business-to-business contract manufacturers, PartnerTech is also one of the larger re- gional players. While collaborating primarily with European companies, it has plants around the world to satisfy the need for low-cost production and to accompany its customers as they enter new markets.
Although the contract manufacturing sector is rela- tively young, PartnerTech has both industrial roots and longstanding experience of interindustry technology. In other words, we offer production of electronic components, mechanical components and a combination of the two.
PartnerTech stands out from many other regional players by virtue of the major contracts it receives to manufacture integrated systems. The breadth of PartnerTech's offering resembles that of global players even though its volumes are lower and its products are for the business-to-business market.
For contract manufacturers like PartnerTech, the ability to maintain a leading position and capture market share
is largely based on offering high performance, a suitable range of services, a global supply chain and access to low- cost production. Among the factors that determine where manufacturing takes place are the scale of production, logistics, labor costs, proximity to end-customers and pro- duct maturity. The sum of these variables is crucial to a customer's competitiveness and lowers the total cost per manufactured unit.
As the contract manufacturing sector has evolved, PartnerTech has carved out a strong position that proceeds from its broad service offering and responsive industrial structure, as well as its established electronics, mechanics and mechatronics expertise.
marKet trendS
The total contract manufacturing market is continuing to
grow. The most powerful driving force is globalization and
the associated increase in competition. That is spurring a
growing number of product owners to contract out their
production, or to outsource more than they had done
TH E MAr K ET 11
previously, in order to obtain cost benefits and greater flexibility. An additional advantage is that they can devote more time to their core operations and rapidly respond to the demands of the market. While manufacturers of consumer products have demonstrated the greatest interest, such needs are increasing in the business-to-business market as well.
The trend among both global and regional contract manufacturers is to work on broadening their range of ser- vices. Today's contract manufacturer is expected to be a complete technology and service partner with leading-edge expertise in production-related areas. Many customers with business-to-business products are looking for service throughout the product life cycle. In addition to produc- tion and assembly, a contract manufacturer must therefore provide industrial design, product development, proto- type manufacture, new product introduction, logistics and after-sales services. A purchasing function that can create economies of scale and offer high-quality materials and competitive prices is also essential. The contract manu-
facturing sector is consolidating so as to satisfy such de- mands, as well as to deal with price pressure and global economies of scale.
When it comes to complete products and systems that contain both software and mechanical components, customers often seek close proximity of production and the market. Given the need to share expertise and optimize distribution, complex products of those types are not necessarily suitable for remote manufacture. Shipping large products over long distances to reach the end- user is defensible from neither an environmental nor cost standpoint.
The situation is different for electronic components,
which are easy to handle and distribute. relocating pro-
duction may also be suitable for other products when
the scale production increases and they enter a mature
phase. Generally speaking, Central and Eastern European
countries serve as low-cost options in Europe, while China
plays a similar role in Asia.
COMPETITOrS
Other players with PartnerTech's orientation – Kitron, Bench- mark, Enics, Note and Scanfil – all have a strong regional base and global operations proceeding from Europe and Asia (the United States as well in PartnerTech's case).
PartnerTech also has local rivals in individual geographic markets, but they operate in only a few disciplines and do not compete in any real sense with PartnerTech's total offering.
SECTOr GrOWTH
According to various market research companies, large global contract manufacturers continued to enjoy rapid growth in 2007 and the first half of 2008, at which point a slowdown was discernible. Through 2012, the Asian market is expected to grow the fastest while the United States and Europe lose some steam. The forecast concerns the total contract manufacturing market, of which consumer products represent by far the greatest share. Contract manufacturing of business-to-business products is ex- pected to largely remain in Europe and the United States.
Estimates are that Eastern and Central Europe will account for most European growth.
Generally speaking, the contract manufacturing sector faces bright future prospects. Catalysts such as greater globalization and competition, along with demands for cost- effectiveness and short lead-times, will make product owners increasingly keen on engaging contract manu- facturers. But global economic instability is likely to have a short-term detrimental impact on the sector.
overvieW of the marKet
The global contract manufacturing market is dominated by a handful of players, such as Foxconn and Flextronics, that focus on consumer and other electronics-based, high- volume products. These companies rarely compete with PartnerTech, whose customers are in the business-to- business market and need smaller-scale production.
The 2008 global market for contract manufacturing was an estimated EUr 120 billion, of which Europe accounted for some EUR 30 billion. The segments and geographic markets in which PartnerTech operates repre- sent approximately EUR 5 billion, or 17%, of the total European market. PartnerTech's current share of that 17%
is around 5%.
12 TH E MAr K ET
Rest of the world Europe
75%
25%
Consumer and automotive products Business-to-business
54%
46%
The global market for contract manufacturing
The European market for contract manufacturing
The segments and geographic markets in which PartnerTech operates represent approximately EUR 5 billion, or 17%, of the total European market.
PartnerTech's current share of that 17% is around 5%.
TH E MAr K ET 13
Contract manufacturing is a term to de- scribe outsourcing by a product owner of production and other processes to a specialist. That allows the product owner to concentrate on its core operations.
The contract manufacturing concept saw the light of day in the United States of the late 1970s when a few large companies, primarily in the automotive and computer industries, outsourced some of their pro- duction. Their motivation was to have the capacity to ramp up production without investing in additional plants, as well as to deal with accelerating technological pro- gress. Once the strategy turned out to be successful, the companies decided to turn over their own plants as well, chiefly to contract manufacturers. From the mid- 1980s to early 1990s, computer and consumer electronics accounted for most production.
Spotlight on the nordic countrieS
While the foundation for the new production arrangement was laid in the United States, the Nordic countries assumed a vital role in the second half of the 1990s as Ericsson and Nokia began using domestic contract manufacturers to supply individual com- ponents and modules. The market ex- panded by almost 50% until 2000 (Source:
Reed Electronics Research). The Nordic countries became a key base of contract manufacturing.
the Scene changeS
Demand by the telecom sector screeched to a halt in the early 2000s. As a result, PartnerTech and other Nordic contract manufacturers had to quickly revamp their business concept. New customers could be found among medium-sized and big businesses in other segments, such as information technology and medical de- vices. Those companies realized that out- sourcing to the right partner would lower their costs per manufactured unit and shorten time-to-market.
PartnerTech was early to adapt its strat- egy to the new conditions and has continu- ally broadened its range of services while strengthening its position in the European market.
sectoR tAkes
shApe in the 1970s
hoW We collaborate With our cuStomerS In order to ensure the best possible service, PartnerTech has set up local customer centers in each market where it operates. That allows us to satisfy the desire of our customers for an ongoing dialog about technology and the market. The company has the electronics, mechanics and systems integration expertise required to manufacture products in a number of different sectors. PartnerTech also adopted measures in 2008 to upgrade group-wide processes, technologies and working methods, as well as optimizing its strategic purchasing function. All in all, that has made us more flexible and efficient vis-à-vis our customers while creating additional cost benefits.
A SINGLE POINT OF CONTACT
Businesses have varying needs for business-to-business contract manufacturing services. A product is commonly tested and manufactured locally to start out with and relocated to a low-cost country once volumes increase.
A return to local production may occur at the end of the product life cycle.
regardless of where a product is manufactured, PartnerTech's local customer center retains responsibility for it. Each customer center is in charge of its geographic market. While gaining access to a global supply chain and cost-optimized production, the customer has a single point of contact.
pARtneRtech And its custoMeRs
14 S E rvI C E O F F E r I N G AN D MAr K ET Ar EAS
PartnerTech is a strong contract manufacturer for both big and small product owners, primarily in the business-to-business sector.
By turning over the optimal degree of responsibility to us, customers reduce their total cost per manufactured unit and shorten the time from product concept to market launch.
regardless of where a product is manufactured, PartnerTech's local customer center retains re- sponsibility for it. Each center is in charge of the customers in its geographic market. While gaining access to a global supply chain and cost-optimized production, the customer has a single point of contact.
S E rvI C E O F F E r I N G AN D MAr K ET Ar EAS 15
develop its Centers of Excellence during the year. The centers are located at units that had already been in the vanguard of their particular areas of expertise. Within its particular discipline, each Center of Excellence is in charge of tracking international and market trends, as well as pursuing production development, technological advances and investments on behalf of other group units. In other words, the Centers of Excellence serve as models and provide technological leadership. The goal is for PartnerTech to boost the competitiveness of its customers in all areas and enable them to more fully benefit at each link in the value chain.
Centers of Excellence.
To ensure close collaboration with PartnerTech, a business chooses the customer center that best suits its need for expertise and geographic proximity. Every product is manu- factured at the plant that is most appropriate in terms of costs and distribution.
We have customer centers at plants in Sweden, Norway, Finland, the UK, Poland and the United States, as well as purchasing operations in Asia. We also maintain a far- reaching partner network of experts and producers, enabling flexibility and stability regardless of whether customers are growing in existing or new markets.
TEAMS OF vArIOUS SPECIALISTS
To pave the way for effective cooperation, we set up a team of PartnerTech specialists before each project begins. The purpose is to make the product more competitive and ensure agreed-upon performance. In addition to taking charge of daily operating activities, the team helps strengthen the customer's business by identifying economies of scale, production optimization measures and distribution solutions.
centerS of excellence
To further upgrade its production skills – as well as to
ensure top-class electronics, machining, enclosure and
systems integration services – PartnerTech continued to
In keeping with the concept, we perform an overview of a product so as to make it more cost-effective and optimize it for production. For instance, we analyze product design, as well as the choice of materials and supplier. 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.
While our development engineers are focusing on pro- duction requirements, the customer's product development function can devote more of its time and energy to putting together the kinds of applications that the market is looking for. Product development and manufacturing are two sides of the same coin. When they are integrated, efficiency auto- matically improves. The process speeds up and total cost normally decreases.
PUrCHASING
Involving PartnerTech's purchasing function at an early stage sets the stage for a top-quality, cost-effective product.
We are proactive in our choice of suppliers, making sure partnertech'S Service offering
PartnerTech offers services throughout the value chain and a product's life cycle. The extent to which customers col- laborate with PartnerTech is completely up to them. Many of them start off by taking advantage of particular services, turning over greater responsibility as they grow comfortable with the partnership.
PrODUCT DEvELOPMENT AND UNIQUE COST rEDUCTION METHOD
PartnerTech's local customer centers meet demands by the market for technical expertise at close range. We take part in the product development efforts of many customers when electronics, mechatronics, encapsulation and soft- ware skills are required. Because approximately 70% of a product's total cost is determined at the development stage, many customers engage us at that point when new products are involved. Others ask us to improve their existing products and prototypes, as well as to design test systems. Furthermore, our integrated Value Analysis/Value Engineering (VA/VE) concept provides unique expertise.
16 S E rvI C E O F F E r I N G AN D MAr K ET Ar EAS
that we find the right one for every purpose. A 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. For purchasing in Asia, we have a separate unit in China and advanced cooperation with our Chinese partner 3CEMS.
Based on the demands of the customer's 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 share experience and make sure that everything starts off on the right foot.
PrODUCTION
PartnerTech's structure of customer centers in various geo- graphic markets ensures not only technology and develop- ment sharing, but production optimization. The products can be manufactured near a customer's product development and technical division, in a country with lower wage costs or both. Because we manufacture for selected segments of the market, we are fully acquainted with their require-
ments and specifications. Our production know-how extends across a number of disciplines, including printed circuit boards, encapsulated electronics, cabling, mechanical pro- cessing, sheet metal work, assembly and systems integration.
Before starting up production, we sit down with the customer to review the product and its various functions.
If we are engaged at an early stage, we can set quality targets while ensuring flexibility and short lead-times during the development effort.
LOGISTICS AND AFTEr-SALES
Many customers outsource logistics and after-sales re- sponsibility to PartnerTech as well. The desire to shorten time-to-market and streamline their sales organization con- tributes heavily to that decision. Among our services are warehousing near the end-customer, maintenance, repair and distribution, including customized logistics services.
PartnerTech’s logistics services promote flexibility. They can be combined to meet the customer's requirements, enabling discretionary levels of service and more efficient distribution.
S E rvI C E O F F E r I N G AN D MAr K ET Ar EAS 17
18 S E rvI C E O F F E r I N G AN D MAr K ET Ar EAS
and base station antennas. Because the size and appli- cation areas of the products manufactured by this area are often suited for large-scale production, it also drives devel- opment of PartnerTech's global structure.
MEDTECH AND INSTrUMENTATION
This market area manufactures equipment and instruments for medical technology applications. Among the products are blood analysis equipment, allergy testing instruments and printed circuit boards for various types of instruments.
PartnerTech's local customer centers facilitate close tech- nical collaboration, which is particularly important in this segment. The ISO 13485 Medical Device Quality Man- agement Standard serves as our basis for regulatory requirements. In addition, we adapt our processes to the requirements to which the manufacture of medical devices is subject: the Quality System regulation (QSr) for the United States, the Pharmaceutical Affairs Law (PAL) for Japan, and the Medical Device Directive (MDD) and In vitro Diagnostic Device Directive (IvDD) for Europe.
CLEANTECH
This expanding market area is partially influenced by public policy decisions. The area, which includes both components and complete systems, often requires us to gather expertise from all of our disciplines. Typical products are recycling and reverse vending machines, heat pump systems and weather station equipment.
POINT OF SALE APPLICATIONS
PartnerTech can boast of sound expertise and experience when it comes to cash handling systems, card readers for payment systems and similar products. Customers in this market area commonly outsource at a high level, often production of complete systems and modules. Many customers also rely on PartnerTech for each step in the value chain, all the way from product development and manufacturing to logistics and after-sales.
more clearlY deScribing our SphereS of activitY
We carried out a number of changes in 2008 aimed at pro- viding better customer service and more clearly delineating what we do as a contract manufacturer. For instance, we decentralized our sales organization and strengthened our operating efficiency by designing new, improved group-wide processes. Moreover, we sharpened our production skills in each discipline and refined the focus of every customer center. To support those changes, PartnerTech has replaced its Terminals/Machine Solutions, Medical Equipment and Industry/Telecom business areas as of 2009 by six market areas. The new structure better reflects the areas in which we operate, possess superior expertise and can deliver value to our customers.
Six marKet areaS DEFENSE AND MArITIME
This market area manufactures primarily components that are subject to stringent security and quality requirements, as well as products for use by the oil and other industries.
Characteristic of the area is that it is based on long-term relationships, given that contracts run for many years.
volatility is correspondingly less.
INDUSTrY
This stable market area largely involves manufacturing com- ponents and products for operator terminals, power & range control units and similar segments. Because a number of customers in this area are looking for large-scale pro- duction, it is integral to spearheading the development of PartnerTech's global structure.
INFOrMATION TECHNOLOGY
PartnerTech often obtains major assignments in this tech-
nology-driven market area. For instance, we take charge of
producing advanced, encapsulated electronic components
(box build assembly). Among typical products are security
cameras, broadband routers, videoconferencing systems
STr ATEGY AN D TAr G ETS 19
a specific area in which it additionally upgrades its expertise and resources. Moreover, the development of our four Centers of Excellence – which spearhead the group's production and technological progress – is proceeding.
PartnerTech satisfies the market's need for low-cost production by manufacturing high volumes and mature products in Poland and China. Our present goal is to expand our offering in that area in both Eastern Europe and Asia.
In summary, PartnerTech may very well offer the broad- est range of service and production options among regional contract manufacturers. Our vision is to be in the forefront of every discipline while safeguarding our strong, integrated offering and competitive industrial structure. That is the kind of strategy that provides the ability to deliver greater customer value.
financial targetS
Financial strength is integral to success. As a contract manufacturer, PartnerTech operates in a sector that is subject to change, invests regularly in machinery and human resources, and encounters volume fluctuations and unforeseen developments that must be dealt with.
Given the above considerations and the current state of the market, PartnerTech adjusted its long-term financial targets in early 2009 to annual growth of at least 10%, an operating margin of at least 7%, return on operating capital of at least 20% and an equity/assets ratio of at least 30%.
PartnerTech's market expansion strategy is to understand and be located near the customer, as well as thoroughly analyze each business opportunity to ensure the best pos- sible service. The decentralization of our sales organiza- tion at our local customer centers increases our market presence, facilitates communication and strengthens our image as a contract manufacturer that puts our customers at center stage.
Working collaboratively, PartnerTech strives to create customer value by means of cost-effective, flexible pro- duction, along with supplemental services throughout a pro- duct's entire value chain. Supplemental services are as- sociated with product development and cost-effectiveness measures, as well as purchasing, logistics and after-sales. In response to the wishes that our customers have expressed with regard to logistics and after-sales, we are looking to build new and larger distribution centers in Europe and the United States while expanding our range of services in this area.
We strive to deliver agreed-upon quality and performance when it comes to production, our core operations. Thus, our units are based on uniform, overall structures and processes that enable us to readily relocate production among them and generate economies of scale, thereby boosting the competitiveness of our customers.
In 2008, we further streamlined our organizational structure and kept our eye on improving efficiency and cost-effectiveness. In that connection, each unit is to master
stRAtegy And tARgets
PartnerTech is among the leading European business-to-business contract manufacturers.
We focus on product owners,
primarily in the European market,
while maintaining a structure that allows us to
accompany customers as they enter new markets.
Our Total Quality Management (TQM) concept dictates a focus on customers, constant improvement, a process orien- tation and fact-based decision-making. A typical concrete goal is to substantially shorten the time from production order until the product leaves the plant. Distinguishing char- acteristics of TQM:
• Meets the ISO 9001 Quality Management Standard, ISO 14001 Environmental Management Standard and ISO 13485 Medical Device Standard.
• Supports customer-specific requirements such as Quality System regulation (QSr) for the medical technology industry and Quality Assurance Test (QAT) for the telecom industry. QSr comprises the FDA regulations for medical devices to be sold in the United States. QAT is required in order to deliver to a particular international operator.
conStant improvementS
PartnerTech has established joint tools within the scope of TQM that enable our employees to constantly identify im- provements and eliminate any problems and shortcomings before they begin to affect quality or customer performance.
As an integral part of daily operations, the tools encourage employee commitment, as well as guiding our customer teams as they formulate objectives and activities in partner- ship with the customer.
The monitoring tools are broken down into four main categories.
quAlity AssuRAnce enviRonMentAl And effoRts
2 0 Q UALITY AS S U r AN C E AN D E NvI r O N M E NTAL E F FO rTS
PartnerTech pursues its quality assurance effort with a focus on awareness throughout the organization, shorter lead-times and greater flexibility.
The objective of PartnerTech's group-wide
Total Quality Management (TQM) system is to
maintain an ambitious vision of quality.
MONITOrING AND FOLLOW-UP
Among these tools are 5S – a collective term for Sort, Systematize, Straighten up, Secure (proactivity) and Stan- dardize – and Overall Equipment Efficiency (OEE). In ad- dition, Team room regularly monitors the company's key ratios. That's where employees can follow quality and per- formance on a joint, continual basis.
rISK ELIMINATION
The 10-step Supplier Quality Assurance Plan (SQAP) tool is used to ensure superior production quality.
IMPrOvING PrOCESSES
The Six Sigma tools and problem resolution groups focus on skills development, willingness to change and efficient production. All waste is to be minimized and resources are to be used wisely.
IMPrOvING PrODUCTS
PartnerTech uses the Value Analysis/Value Engineering (VA/VE) and Six Sigma tools. VA/VE involves an overview of a product in order to make it as cost-effective as possible and optimize it for production.
These quality assurance tools are vital to a business like PartnerTech for a number of reasons. They are important when independent parties evaluate our organization in relation to the ISO 9001, ISO 14001 and ISO 13485 standards. The DNv (Det Norske veritas) foundation per- forms reviews throughout the year to verify that we meet our stringent requirements and identify that which bears improvement.
Six Sigma
– World-leading improvement concept Six Sigma is a world-leading improvement concept with a clear structure and a focus on more complex problems.
PartnerTech Academy conducted Yellow Belt training and associated improvement projects during the year, often in cooperation with our customers. The large number of Yellow Belts, Green Belts and Black Belts in the PartnerTech organization represent an asset when it comes to product quality, efficiency, delivery times and costs.
WorKing methodS and qualitY aSSurance The standardization of working methods provides us with both quality and efficiency. As a result, we can more easily control and monitor the assembly process.
Because our customers require flexibility, we must be able to safely and efficiently relocate production. Group- wide trainings and procedures promote skills development and quality awareness among our production engineers.
Our Supplier Quality Assurance Plan (SQAP) is an estab- lished method (vis-à-vis both customers and suppliers) that can be applied to either products or projects, particularly in the face of customer-specific requirements. PartnerTech Academy conducts regular SQAP trainings to assure and optimize quality and cost-effectiveness throughout the value chain. Our goal is to increasingly involve customers and suppliers as much as possible in order to guarantee quality, efficiency and low costs for everyone concerned.
focuS on our environmental effort PartnerTech has a group-wide environmental certificate in accordance with ISO 14001. It covers all units as well as future acquisitions. Our environmental management system and purchasing manual also impose environmental require- ments on our suppliers.
Besides being the natural consequence of our quest for long-term sustainable development, PartnerTech's inten- sive environmental effort reflects the demands of most cus- tomers. We do not own any products, but manufacture ex- clusively on contract.
Questions about the use of materials, recyclability and energy consumption are generally important to answer in order to limit the environmental impact of the products.
When it comes to recycling and phasing out hazardous sub- stances, we follow the restriction of the Use of Certain Hazardous Substances (roHS) and registration, Evalua- tion and Authorization of Chemicals (rEACH) regulations of the European Union. PartnerTech proactively helps cus- tomers develop lead-free design solutions.
Our licenses for emissions to air and water, as well as the use of cutting fluids, require the following:
• Waste water is to be purified and recycled.
• Refuse is to be sorted and either recycled or incinerated.
• Biofuels are to be used for heating.
• Powder lacquer is to be used instead of solvent-based lacquer.
environmental targetS in 2008
PartnerTech's environmental targets in 2008 focused on reducing the use of electrical power, gas, water and chemi- cals, as well as recycling more. An effort is also under way to measure and report carbon dioxide emissions – in other words, exhaust and other discharges that harm the environ-ment – during shipping. We also adopted a new company car policy that provided a greater incentive to use green vehicles. Similarly, our business travel policy now requires the choice of the most environmentally friendly transportation option possible.
For more information about our environmental targets, refer to the management report.
Q UALITY AS S U r AN C E AN D E NvI r O N M E NTAL E F FO rTS 2 1
Group-wide processes, methods and tools set the stage for efficient teamwork while making it easier to cultivate the skills of each employee in order to strengthen the capacity of the entire organization.
To refine the focus on that area and inspire greater team spirit, PartnerTech launched a series of career development and employee care activities during the year. A new vice President of Human resources was appointed with a similar purpose in mind. Our goal is to strengthen leadership and organizational development while supporting local human resource functions with respect to personal and career development in the group, as well as the management of restructuring efforts. Central human resource coordination also generates synergies and economies of scale.
reSource Sharing among unitS
We established the PartnerTech Competence and re- source Center to take advantage of the group's skills while promoting mobility and personal development. The center enables our units to engage group employees with special
2 2 E M P LOYE ES AN D vALU ES
efficient teAMwoRk stRengthens ouR position
Skilled, committed employees with the ability to handle the unique product of each customer are decisive to PartnerTech's growth and development.
Thus, it is essential that we maintain a
corporate culture that encourages skills development,
motivation and cooperation, thereby improving
our prospects for attracting and retaining
talented people while ensuring a flexible organization.
expertise in resolving problems, handling insufficient ca- pacity, etc. Such employees can serve in multiple countries and obtain language traning under PartnerTech's auspices.
our oWn training academY
PartnerTech Academy, which trains customers and suppliers as well as our employees, plays a key role in strengthening the group's position and creating greater customer value.
Among the popular trainings are Six Sigma, SQAP, 5S and Purchasing. Having operated for many years, Partner- Tech Academy uses professional trainers (both internal and external) who have longstanding practical and theoretical experience in their spheres of activity. As a result, each train- ing clearly reflects the real world. The trainings are often conducted at one of our plants and deal with current pro- jects. PartnerTech
Academy trainers also provide em- ployees with on- going support.
E M P LOYE ES AN D vALU ES 2 3
flexible, broad-baSed organization Solid, far-reaching skills are needed in many areas if PartnerTech is to operate in the global market and ensure the best possible service for its customers. Thus, we strive for a flexible organization when it comes to both expertise and training. By the same token, we are anxious to maintain a diverse workforce with respect to experience and age, as well as cultural, ethnic and language background.
Furthermore, our organization has a tradition of knowledge sharing, learning and development from day to day.
The close contact we maintain with colleges and uni- versities in the towns where we operate facilitates the hiring of highly qualified personnel.
common valueS
LINKS to Success has long provided PartnerTech employ- ees with common values – six clear rules of conduct. The purpose of the rules is to reinforce the sense of together- ness throughout the group and ensure a uniform approach to work. LINKS to Success highlights the importance of personal commitment and describe our method of creating customer value:
• ”Success breeds success” – promoting the success of our customers ensures that we will be successful as well.
• ”You can count on us” – we keep our promises and always deliver superior quality.
• ”We are one team” – we have clear roles and help each other achieve common objectives.
• ”Straight to the point” – we communicate openly and modestly, showing respect and appreciation for each other.
• ”I'll do it” – we act in a way that is good for the company.
• ”We are cost-wise” – common sense dictates that we question unnecessary costs and look for more creative solutions.
promoting our brand
LINKS to Success also serves a vital function in the group's brand promotion effort. Adopting and following our rules of conduct permits our employees to make PartnerTech's brand even more credible. The values we seek to com- municate are expertise, a service orientation and a sense of togetherness for the purpose of supporting our assign- ments, creating value and achieving our targets. That also ensures that we can continue attracting and retaining the best employees.
The strength of PartnerTech's brand is confirmed by our
longstanding customer relationships, our ability to create
customer value and our listing on the Stockholm Stock Ex-
change since 1997.
2 4 E M P LOYE ES AN D vALU ES
ethical guidelineS
During the year PartnerTech have been working towards a completion of a Code of Conduct. The document, which is based on our values, will be part of our group-wide business system.
The Code of Conduct contains the ethical rules that apply not only to PartnerTech and our organization – from the Board and management team to the rest of our employees – but to our suppliers as well. The purpose of issuing specific guidelines was to avoid individual assumptions in a changing world. Within his area of re- sponsibility, each manager is to ensure that employees, cus- tomers and suppliers are informed about what the Code of Conduct says. Our goal is to complete and implement the document in 2009. Just like LINKS to Success, it should be regarded as integral to our day-to-day efforts.
Worth emphasizing is that PartnerTech has long fol- lowed the laws, regulations and directives applicable to our business. Based on its fundamental convictions, Partner- Tech conducts itself responsibly and reliably. By forging and maintaining relationships with employees, business partners, public agencies and other stakeholders, we con- tribute to the stable development of society. 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.
health and SafetY
PartnerTech pursues a systematic effort focused on ergo- nomics and fitness activities aimed at promoting workplace health and safety. The effort is governed by a separate policy and rules for systematic improvement of the work environment. Our goal is to support the physical, mental and social wellbeing of our employees. Among the objectives are suitable premises, fitness allowances and the ability of employees to affect their workstations so that their tasks are ergonomically sound. In addition, we continually study, plan and carry out changes that help prevent ill-health and accidents. Finally, PartnerTech conducts a survey every other year to find out what our employees think of the over- all work environment, as well as the areas in which changes and improvements are needed.
Key ratios 2006 2007 2008
Average no. of full-time employees 1,747 1,886 1,670 revenue per employee, SEK thousand 1,750 1,402 1,514
Average age 41 41 41
emploYee KeY ratioS
breaKdoWn bY gender
Women 28%
(28) Men 72%
(72)
educational level
Post-secondary 24%
(19) 3-year upper secondary
and lower 63%
(65)
breaKdoWn office WorKerS/emploYed under a collective agreement
Office workers 32%
(32)
Employed under a collective agreement 68%
(68)
total group emploYeeS
Swedish units 40%
(43)
Non-Swedish units 60%
(57)
average period of emploYment
1–5 years 32%
(29) Longer than 5 years 57%
(58) Academic training
120 credits and higher 13%
(16)
Shorter than 1 year 11%
(13)
E M P LOYE ES AN D vALU ES 2 5
2 6 200 8 I N B R I E F
2008 in brief
The markeT
While contract manufacturers faced relatively favorable prospects in 2008, growth slowed down somewhat during the second half of the year. Nevertheless, contract manufacturing can generally look forward to a bright future.
Product owners rely increasingly on contract manu
facturers that can serve as complete technology and service partners. Increased globalization and competition, along with the need for costeffectiveness and short leadtimes, are driving that trend. Under such circumstances, many businesses look for contract manufacturers with which they can partner in order to become more competitive. Customers often need a local contract manufacturer that can take over the initial production phase, including product development, prototype manufacture and new product introduction. They also prefer a locally established organization that can handle the product throughout its life cycle – largescale production, logistics and distribution.
As volumes grow and products mature, the ongoing trend is to relocate production to lowcost countries in Eastern Europe, Central Asia or Asia. Because electronic components are handled and distributed in a relatively straightforward manner, their production is setting the pace.
Due to the size and complexity of complete products and systems containing software and mechanical components, they must be manufactured close to the customer and its market. As a result, they cannot be produced as effectively at a greater distance. Owing to environmental and shipping cost considerations, Eastern and Central Europe are becoming the lowcost option for Western Europe, while China is playing that role for other Asian countries.
ParTNerTeCh ImPLemeNTS ChaNGeS
The action and change program that PartnerTech launched in 2007 was implemented in 2008. As a result, the com
pany's operations and organization were subject to a series of measures aimed at improving profitability and customer service. The program also achieved the planned cost savings.
The organizations of each customer center became more processoriented and assembled a dedicated team for every customer. Furthermore, PartnerTech's product development function was incorporated into the various customer centers, while its sales structure was decentralized to ensure closer local proximity.
We also took action in 2008 at most of our units to ensure more efficient joint processes and flows while refining our production expertise with the aim of maximizing performance and skills in our four primary disciplines. Thus, PartnerTech's main production units for electronic compon
ents, machining, enclosures and systems integration are con
tinuing to develop Centers of Excellence.
PartnerTech also reviewed and streamlined its industrial structure during the year, phasing out its smaller, non
strategic units: Järfälla (Sweden), Gdynia (Poland), Åbo (Finland) and electronic component production in Åtvidaberg (Sweden). Furthermore, the company decided in early 2009 to divest its Poole unit, which is part of its UK subsidiary, as well as mechanical component production in Åtvidaberg.
To guarantee a competitive longterm range of services, PartnerTech will continue to pursue change processes in 2009. Improved processes, upgraded purchasing routines and greater market presence will strengthen the service that customers receive. Finally, PartnerTech is planning to broaden its logistics and aftersales services while seeking additional production opportunities in Asia and, above all, Eastern Europe.
SIGNIFICaNT eVeNTS DUrING The Year
Gunnebo Cash Automation, a subsidiary of the Gunnebo security group, signed a new cooperative agreement with PartnerTech in January on manufacturing products for its SafePay™ cash handling system. The agreement runs until 2010.
PartnerTech and Biotage, an international company in the field of life science research, expanded their cooperation in May and signed a new agreement to manufacture instru ments for DNA analysis and microwave synthesis. The agree ment, which runs for two years and renews auto matically, is worth an estimated SEK 40 million annually.
The following smaller units were divested during the year in order to streamline PartnerTech's industrial structure and make it more efficient:
– Electronic component production in Åtvidaberg, Sweden – Electronic component production in Åbo/Turku, Finland – Mechanical component production in Järfälla, Sweden – Assembly unit in Gdynia, Poland
eVeNTS aFTer The BaLaNCe SheeT DaTe An extraordinary general meeting on January 26, 2009 approved the divestment by PartnerTech Limited, Partner
Tech's UK subsidiary, of its entire stake in PartnerTech
Poole Limited (”Poole”), its wholly owned sub sidiary, to the
current management of Poole. The divestment reflected
PartnerTech's strategy of streamlining its opera tions while
making them more efficient and costeffective.
200 8 I N B R I E F 27
2 8 S HAR E AN D S HAR E H O LD E R S
share and shareholders
Share CaPITaL aND NUmBer OF ShareS
On December 31, 2008, PartnerTech AB’s share capital totaled SEK 63,324,920 allocated among 12,664,982 shares. Each share entitles the holder to one vote at the annual general meeting, and all shares provide equal rights to participation in the company’s assets and profit. PartnerTech is listed on the OMX Nordic Exchange Stockholm.
SharehOLDer STrUCTUre
On December 31, 2008, PartnerTech AB had 2,824 share
holders (3,294). The ten largest shareholders held 9,735 thousand shares (8,310), representing 76.8% (65.6) of the total shares and votes. Institutions and other legal entities con
trolled 88.1% (82.7) of the capital and votes. Foreign share
holders accounted for 13.8% (18.4) of the capital and votes.
OPTIONS
Pursuant to a decision of the April 25, 2007 annual general meeting, an option program for senior executives and other key employees of the group is currently running. The program includes warrants and employee stock options corresponding to subscription for 125,000 new shares. The redemption price is SEK 134.50 for the warrants and SEK 123.19 for the em
ployee stock options. The program expires on May 31, 2010.
Refer to Note 28 for more information.
DIVIDeND FOr 2008
The Board proposes that the annual general meeting distribute
no dividend (SEK 0.00 per share for fiscal 2007) for the 2008 fiscal year. The proposal is based on PartnerTech's perfor
mance in 2008, as well as the changes and investments that the company is presently carrying out and planning for the future. Due to current financial turbulence and market insta
bility, a larger buffer is required for 2009.
DIVIDeND POLICY
PartnerTech targets a dividend representing 30% of its profit after tax assuming that its financial position so permits. Since listing its share on the stock exchange in 1997, PartnerTech has paid annual dividends as follows.
DIVIDeND
Year amounts in Sek million % of profit after tax
1997 1.9 16
1998 3.0 18
1999 5.7 12
2000 12.5 14
2001 0.0 0
2002 0.0 0
2003 0.0 0
2004 5.7 16
2005 15.8 30
2006 38.0 31
2007 0.0 0
2008 0.0 0 (proposed)
Change in Par value/quotient
Change in Total share capital Total share capital valueYear
Year Type of transaction no. of shares shares (Sek) (Sek) (Sek)
1984 Company’s foundation 270,000 270,000 27,000,000 27,000,000 100
1997 Bonus issues 270,000 10,800,000 37,800,000 100
1997 20:1 split 7,290,000 7,560,000 37,800,000 5
2000 Issue of new shares (subscription for options) 1,000 7,561,000 5,000 37,805,000 5
2001 Noncash issue (acquisition of shares 647,414 8,208,414 3,237,070 41,042,070 5
in EQ Elektroniq AB)
2001 Noncash issue (acquisition of shares 102,586 8,311,000 512,930 41,555,000 5
in Baltic Microwaves Sp. z o.o.
and EQ Elektroniq AB)
2001 Issue of new shares (acquisition of shares 211,907 8,522,907 1,059,535 42,614,535 5
in Baltic Microwaves Sp. z o.o.
and EQ Elektroniq AB)
2001 Noncash issue 2,900,000 11,422,907 14,500,000 57,114,535 5
2005 Noncash issue (acquisition of shares 407,811 11,830,718 2,039,055 59,153,590 5
in KSHProductor Oy)
2005 Issue of new shares (subscription for options) 306,666 12,137,384 1,533,335 60,686,920 5
2006 Noncash issue (acquisition of shares
in TH Kristiansen AS) 315,724 12,453,109 1,578,620 62,265,545 5
2006 Noncash issue (acquisition of shares
in Hansatech Ltd Group) 211,875 12,664,982 1,059,375 63,324,920 5
