AnnuAl REpORt - Bisnode

27EmployeesThe number of employees at 31 December 2009was 3,095 (3,189 at 31 December 2008). The averagenumber of employees during the year was3,167, compared to 2,940 in 2008.Significant events after the balance sheet dateAt the beginning of 2010 Bisnode completedthe acquisition of Directinet, a leading supplier ofonline direct marketing solutions in France. Thecompany has 97 employees and annual net salesof EUR 14 million in 2009.Future outlookBisnode’s vision is to be the leading provider ofdigital business information in Europe. The Group’slong-term financial targets are annual revenue growth,including acquisitions and divestitures, of 10 percent over a business cycle and an operating margin,EBITA, of at least 15 per cent over a business cycle.The Bisnode Group has recorded average annualgrowth of around 9 per cent over the past tenyears. This growth has been achieved mainlythrough acquisitions. The Group’s strategy is tocontinue expanding primarily through organic growth.Bisnode is working actively to streamline theGroup’s offering and increase the focus on coreactivities. As part of this process, Bisnode regularlyevaluates the opportunities to both acquire strategicallysuitable companies and to sell off operationsthat are not consistent with the Group’s corebusiness.Risks and uncertaintiesAll business operations involve risks. Bisnodeworks continuosly to identify, measure and managerisk. In cases in which events are beyondBisnode’s control, the aim is to minimise theconsequences. The risks to which the BisnodeGroup are exposed are classified into three maincategories: external-related risks, operating risksand financial risks.External-related risks– MacroeconomicsBisnode’s operations are influenced by a numberof external factors whose effects can be controlledto a varying extent. Demand for the Group’s servicesand products is largely steered by economicdevelopment in the respective country. However,the Group’s external-related risks are reduced bymaintaining a good geographical spread with salesin 18 countries, a large number of customers anda wide range of services and products.– LegislationTo a large extent, the information used by theGroup comes from publicly accessible sources.As a result, the Group’s operations are influencedby the laws and regulations governing publicsector information in each country. In 2003 theEU implemented the so-called PSI Directiveaimed at increasing the availability of public sectorinformation in the EU. The immediate effects ofthe directive are minor, but in a longer perspectivethe directive is expected to increase accessibilityto basic data and thereby drive the supply of anddemand for business information in Europe. TheGroup’s assessment is that it is well positioned touse its experience from the Nordic markets, wheresuch information has been easily accessible forseveral decades, in order to grow and capturemarket shares in the rest of Europe as access toinformation increases.– CompetitionAs technological advances reduce the costs of procuringand delivering digital information, start-upcosts and certain barriers to entry in Bisnode’smarkets may be reduced, allowing for more marketentrants and greater competition.To fend off competition from low cost players,Bisnode is working actively to develop a more segmentedproduct range and to increase customerloyalty through integrated solutions where the informationis made available directly in the customer’sbusiness system when possible.Operating risks– Product and technology developmentThe Bisnode Group’s long-term profitability dependson the Group’s ability to successfully develop andsell new products and services.Digital business information is delivered to customersusing a number of delivery methods, includingdigital media, the Internet and direct integrationinto our customers’ IT systems. If Bisnode fails toenhance the current delivery methods or developnew methods in response to changes in technologyor customer preferences, or do not act quicklyenough to enhance or develop new delivery methods,the customers may choose to receive digital businessinformation from other providers.– EmployeesThe most important resource for Bisnode is theemployees. In order to retain existing staff andrecruit new talents, Bisnode is working actively tooffer competence development and competitiveemployment terms for its employees.Financial risksBisnode’s exposure to financial risk factors such asinterest rate and foreign exchange risk is monitoredand analysed regularly. Interest rate risk is managedthrough the use of derivative instruments to reduceexposure to interest rate movements. Foreignexchange risk is limited by raising part of the longtermborrowing in euro, the currency in which mostof the Group’s sales are denominated.EnvironmentBisnode’s operations have a limited impact on theenvironment and the Group conducts no operationsthat are subject to permitting or reporting requirements.In its purchasing, the Group takes environmentalaspects and social responsibility into considerationwhen choosing products and suppliers.Research and developmentBisnode conducts product development in its subsidiaries.Parent CompanyThe operations of the Parent Company consist offinancing and ownership of subsidiaries.The Parent Company reported an operating lossof SEK 1 million (11) for the year. Profit after financialitems was SEK 100 million (0). Net financial itemsinclude dividends of SEK 100 million (0) from subsidiaries.The Parent Company made no investmentsduring the year.Group conditionsBisnode Business Information Group AB is a subsidiaryof Ratos AB, corporate identity number556008-3585. Ratos’ holding in the companyamounts to 70 per cent of the votes and capital.The remaining shares are held by Bonnier Holding AB.Accounting policiesThe Bisnode Group applies reporting in accordancewith International Financial ReportingStandards (IFRS). For additional information seeNote 2.Proposed appropriation of earningsProfits available for appropriation by the AnnualGeneral Meeting (SEK):Retained earnings 538,733,572Profit for the year 99,966,472Total 638,700,044The Board of Directors and the CEO propose thatthe profits be appropriated as follows:To be carried forward 638,700,044Total 638,700,044