ANNUAL REPORT 2003 INEX PARTNERS OY

The Group’s equity ratio fell to 20.5 per cent, while return
on investment came to 9.7 per cent. Dividends paid
in the spring of 2003 totalled EUR 7.0 million.
Investments and Development
In accordance with the Group’s strategic outline, the
streamlining of the Group companies was divided into
projects which, on the one hand, enhanced the competitiveness
of the current business structure and, on the
other, initiated programmes to develop and support new
competitive advantages.
More precisely, we focused on the development of our
product ranges, in particular company brands and service
models; purchasing partnerships, both national and
international; information management, and our staff’s
skills.
To create preconditions for, for instance, more cost-effi -
cient co-operation within the partner network, Inex Partners
Oy made signifi cant investments in the defi nition
and development of value chains and core processes.
Pilot projects related to the development of strategic repositioning
were launched during the fi nancial year. Various
portal and extranet projects aimed at improving information
management were launched towards the end
of the year and their implementation will continue in
2004.
The Inex Group continued the implementation of its environmental
programmes. A number of projects aimed at
enhancing corporate security focused on development
programmes triggered by the updating of data security
principles throughout the Group.
The Group spent a total of EUR 3.2 million on investments
and the acquisition of fi xed assets. The sum was
divided between the companies as follows:
EUR million Total 2003 Change from 2002
Inex Partners Oy 2.5 –3.1
Meira Nova Oy 0.6 0.4
Other companies 0.0 –1.2
Group total 3.2 –3.9
In addition, our logistics centres (mainly Kilo) invested
approximately EUR 4.1 million in construction and renovation
projects which were carried out as joint projects
and funded by the lessor.
Major investment projects were:
• Buildings and production machinery at
Inex Partners Oy’s logistics centre in Kilo
• Inex Partners Oy’s SAP R/3 information
systems and hardware
• The conveyor sorter at Inex Partners Oy’s logistics
centre in Hakkila
• Meira Nova Oy’s SAP R/3 information systems and
warehouse technology.
14
Personnel and Organisation
On 31 December 2003, the number of personnel employed
by the Group totalled 2,214 and the average
number of personnel during the year was 2,242.
Number of personnel employed by each company:
Change Change
from Average from
31.12.2003 2002 2003 2002
Inex Partners Oy 1,984 159 2,015 146
Meira Nova Oy 230 30 227 28
Other companies 0 0 0 –148
Group total 2,214 189 2,242 26
The increase in the number of employees at Inex Partners
Oy and Meira Nova Oy was caused by the rapid
growth in business volumes and orders processed.
The priorities in personnel development were supervisor
work and performance review models, process and
project work and incentive schemes.
Several development projects were implemented to upgrade
the personnel administration’s information systems.
The entire organisation continued to invest in the systematic
implementation of the Vire project activities
aiming at improvements in the working capacity and
well-being of employees.
Outlook for 2004
Signifi cant changes are expected in the domestic and
international markets and competitive situation in 2004,
but their consequences will remain diffi cult to forecast.
Prospects for growth remain moderate and include not
only economic but also other uncertainties, both national
and international.
EU enlargement in the spring of 2004, and the related
actions initiated by the Finnish government, among others,
will create threats but also provide numerous sectors
with signifi cant opportunities which they must be
prepared to seize.
Growth in the Finnish grocery trade is expected to turn
negative. The anticipated intensifi cation of, and the
changes in, the competitive situation will be a challenge
for all market operators.
Inex Group will continue to invest in its key strengths:
ongoing reform, cost-effi cient processes, and upgraded
co-operation within the key partner network.