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26 DirecTors’ reporT The Board of Directors and the Chief Executive Officer of Bisnode Business Information Group AB, 556681-5725, hereby submit their report for 2010. The Group’s operations Bisnode is a leading provider of digital business information in Europe, with a complete offering of online solutions for market, credit and business information. Bisnode’s business information services help companies to maximise sales, minimise business risks and make better business decisions. Bisnode conducts operations in 17 European countries and has approximately 3,000 employees . Consolidated revenue in 2010 amounted to around SEK 4,5 billlion. Bisnode is organised in four geographical regions – Nordic, DACH, BeNeFra and Central Europe – all covering the product offerings Marketing Solutions, Credit Solutions and Business Information Solutions. In addition, there are two separate business areas, Product Information and Software and Applications, and central support functions. Significant events during the financial year Acquisitions and divestitures Three companies were acquired and four operations were divested during the year. At the beginning of January 2010 Bisnode completed the acquisition of Directinet, a leading supplier of online direct marketing solutions in France. The company reported annual revenue of EUR 14 million in 2009 and has more than 90 employees. In April Bisnode acquired Bilfakta i Sverige AB. The company has annual revenue of around SEK 4 million and was integrated with Bisnode’s existing service InfoBil during the year. In October Bisnode acquired Yritystele Oy in Finland with an online B2B search service for business information. The company has 35 employees and annual revenue of around EUR 3 million. At the beginning of April Bisnode divested the Norwegian IT supplier Office Team AS. The company has 12 employees and reported annual revenue of SEK 26 million in 2009. In the middle of May Bisnode divested the ABC group with operations in Belgium, France, Luxembourg and the Netherlands. The ABC companies have a total of 22 employees and posted annual revenue of just under SEK 28 million in 2009. In June Bisnode divested its shareholding of just over 50 per cent in Emric. Emric has more than 100 employees and reported annual revenue of close to SEK 80 million in 2009. Aside from the three divested companies, in May Bisnode sold the subsidiary PAR’s operations in information logistics with 9 employees and annual revenue of around SEK 30 million. Earnings and financial position Revenue and profit Revenue for the period January-December fell by 6 per cent to SEK 4,451 million, compared to SEK 4,741 million in the same period of last year. Organic growth was –6.6 per cent. Adjusted for foreign exchange effects, organic growth was –1.4 per cent. Operating profit, EBITA was SEK 536 million (593), equal to an operating margin of 12.0 per cent (12.5). Adjusted for capital gains on the sale of subsidiaries, operating profit, EBITA was SEK 545 million (563) and operating margin was 12.2 per cent (11.9). Operating profit, EBIT was SEK 434 million (428). Amortisation and impairment of intangible assets attributable to acquisitions amounted to SEK 102 million, compared to SEK 164 million in last year. The comparison period included a total goodwill impairment loss of SEK 41 million. 2010 is charged with an impairment loss of just under SEK 6 million on an excess value attributable to the Product Information business area. Net financial items for the year are reported at SEK –149 million, compared to SEK –189 million last year. The improvement in net financial items is explained by a stronger Swedish krona rate coupled with a decrease in net debt and lower market interest rates compared to the same period of last year. Unrealised foreign exchange gains attributable to the Group’s long-term borrowing totalled SEK 93 million (75). Income tax for the period was SEK 91 million (69), equal to an average tax rate of 32 per cent (29). Profit from continuing operations was SEK 194 million, compared to SEK 170 million last year. Earnings per share (basic and diluted) amounted to SEK 1.5 (1.3). Profit from discontinued operations in the comparison year includes all profit and loss items from Region UK and Ireland, which was wound up during 2009. Profit for the period was SEK 194 million (62) and earnings per share (basic and diluted) amounted to SEK 1.5 (0.4). Cash flow and capital expenditure Cash flow from operating activities remains stable and amounted to SEK 464 million (471) during the year. The year’s improvement in profit before tax was offset by a somewhat higher level of working capital. The year’s expenditure on non-current assets amounted to SEK 95 million (119), and included investments of SEK 52 million (57) in intangible assets and SEK 43 million (62) in tangible assets. As a percentage of revenue, investments in tangible and intangible assets reached 2.1 per cent (2.5). Capital expenditure in the subsidiaries amounted to SEK 194 million (123) and the divestiture of subsidiaries had a positive cash flow effect of SEK 15 million (105). Capital expenditure in the subsidiaries includes total contingent purchase consideration of SEK 108 million. The payments refer to two acquisitions that were carried out in 2007 and the amount has been previously reported as an interest-bearing provision in the consolidated balance sheet. The sale of two small office buildings during the period contributed a positive cash flow effect of more than SEK 20 million. Financial position Consolidated net debt fell to SEK 2,289 million, compared to SEK 2,685 million at 31 December 2009, mainly as a result of a strong cash flow during the year. Furthermore, the higher Swedish krona rate has reduced the Group’s long-term borrowing, which is denominated partly in EUR, by around SEK 90 million. Cash and cash equivalents amounted to SEK 259 million, compared to SEK 368 million at 31 December 2009. In addition, the Group has total granted bank overdraft facilities of SEK 400 million. At the end of the year, SEK 25 million of the overdraft facilities had been utilised.
Employees The number of employees at 31 December 2010 was 2,974 (3,095 at 31 December 2009). The net effect of acquired and divested companies was a decrease of 36 employees. The average number of employees during the year was 3,080, compared to 3,167 in 2009. Significant events after the balance sheet date After the balance sheet date, Bisnode completed the acquisition of Poslovna Domena in Croatia and acquired 51 per cent of Vendemore AB in Sweden. Poslovna Domena offers digital business information from Croatia’s most complete dataset of company and people information. The company has 15 employees and annual revenue of around SEK 9 million. Vendemore helps companies to optimise their online marketing. The company has 10 employees and reported annual revenue of around SEK 9 million in 2010. At the end of February Bisnode acquired the credit solutions company Lindorff Decision and 90.1 per cent of marketing solutions company Lindorff Match, located in Norway. Combined, the companies have 37 employees and showed annual revenue of SEK 115 million in 2010. Operating profit amounted to around SEK 26 million. The acquisitions are subject to approval from the relevant competition authorities. No other significant events have taken place after the balance sheet date. Future outlook Bisnode’s vision is to be the leading provider of digital business information in Europe. The Group’s longterm financial targets are annual revenue growth, including acquisitions and divestitures, of 10 per cent over a business cycle and an operating margin, EBITA, of at least 15 per cent over a business cycle. Risks and uncertainties All business operations involve risks. Bisnode works continuosly to identify, measure and manage risk. In cases where events are beyond Bisnode’s control, the aim is to minimise the consequences. The risks to which the Bisnode Group are exposed are classified into three main categories: external-related risks, operating risks and financial risks. External-related risks – Macroeconomics Demand for Bisnode’s services and products is largely steered by economic development in the respective country. However, the Group’s externalrelated risks are reduced by maintaining a good geographical spread with sales in 17 countries, a large number of customers and a wide range of services and products. – Legislation To a large extent, the information used by the Group comes from publicly accessible sources. As a result, the Group’s operations are influenced by the laws and regulations governing public sector information in each country. – Coordinated Population and Address Register The Swedish market for people information is in transition. In 2009 the Swedish Tax Agency took over responsibility for SPAR (Coordinated Population and Address Register), which was previously handled by Bisnode through its subsidiary Infodata, and the Swedish Tax Agency introduced its first own SPAR services on the market in January 2011. The services handled by Infodata will remain on the market during 2011 but will cease entirely thereafter. Infodata will thus lose its exclusive right to distribution of SPAR information. For more than 20 years, Infodata has distributed this information on a wholesale basis to both Group companies and external parties. Due to this exclusivity, the profitability of SPAR sales has been historically very high. The Bisnode Group’s directly related SPAR revenue in 2010 amounted to around SEK 300 million. The management’s assessment, however, is that the Group’s other operations will compensate for the decline in SPAR-related revenue. – Competition As technological advances reduce the costs of procuring and delivering digital information, start-up costs and certain barriers to entry in Bisnode’s markets may be reduced, allowing for more market entrants and greater competition. To fend off competition from low cost players, Bisnode is working actively to develop a more sophisticated product range and to increase customer loyalty through integrated solutions where the information is made available directly in the customer’s business system when possible. Operating risks – Product and technology development The Bisnode Group’s long-term profitability depends on the Group’s ability to successfully develop and sell new products and services. The long-term development is also dependent on the ability to efficiently deliver products to the customers. If Bisnode fails to enhance the current delivery methods or develop new methods in response to changes in technology or customer preferences, or does not act quickly enough to enhance or develop new delivery methods, the customers may choose to receive digital business information from other providers. – Employees To a large extent, Bisnode’s future sucess is dependent on the knowledge, experience and performance of its employees. In order to retain the existing staff and recruit new talents, Bisnode is working actively to offer competence development and competitive compensation terms for its employees. Financial risks The Group is exposed to different types of financial risks through its handling of financial instruments. The primary risks are currency risk, interest-rate risk, credit risk and liquidity risk. For detailed information about financial risks and financial risk management, see Note 3. 27 Parent Company The Parent Company reported an operating profit of SEK -27 million (-1). Profit after financial items was SEK 99 million (100). The figure includes dividends of SEK 100 million (100) from the subsidiaries. The Parent Company made no investments during the period. Group conditions Bisnode Business Information Group AB is a subsidiary of Ratos AB, corporate identity number 556008-3585. Ratos’ holding in the company amounts to 70 per cent of the votes and capital. The remaining shares are held by Bonnier Holding AB. Accounting policies The Bisnode Group applies reporting in accordance with International Financial Reporting Standards (IFRS). For additional information see Note 2. Proposed appropriation of earnings Profits available for appropriation by the Annual General Meeting (SEK): Retained earnings 638,700,044 Profit for the year 103,802,933 Total 742,502,977 The Board of Directors and the CEO propose that the profits be appropriated as follows: To be carried forward 742,502,977 Total 742,502,977
Page 1 and 2: annual report 2010 Bisnode Business
Page 3: WHAT WE DO Bisnode is a leading pro
Page 6 and 7: 6 WHERE WE ARE TODAY Bisnode operat
Page 8 and 9: 8 TRENDS iN OUR iNDUSTRY An increas
Page 10 and 11: 10 CREDiT SOLUTiONS Bisnode offers
Page 12 and 13: 12 MARKETiNG SOLUTiONS Bisnode is o
Page 14 and 15: 14 BUSiNESS iNFORMATiON SOLUTiONS B
Page 16 and 17: 16 iT’S ALL ABOUT PEOPLE Talent i
Page 18 and 19: 18 claudine knop managing direCtOr
Page 20 and 21: 20 REGiONS AND BUSiNESS AREAS Bisno
Page 22 and 23: 22 region dach eckhard geulen regiO
Page 24 and 25: 24 CORPORATE GOVERNANCE Bisnode’s
Page 28 and 29: 28 consolidated income statement SE
Page 30 and 31: 30 consolidated statement of change
Page 32 and 33: 32 parent company income statement
Page 34 and 35: 34 parent company statement of chan
Page 36 and 37: 36 accounTinG policies anD noTes no
Page 38 and 39: 38 asset’s carrying amount exceed
Page 40 and 41: 40 2.23 Cash flow statement The cas
Page 42 and 43: 42 note 5. operating segments Opera
Page 44 and 45: 44 note 9. Wages, salaries and othe
Page 46 and 47: 46 note 15. financial expenses Grou
Page 48 and 49: 48 note 18. property, plant and equ
Page 50 and 51: 50 note 21. participations in group
Page 52 and 53: 52 note 22. Trade and other receiva
Page 54 and 55: 54 note 27. other provisions Group
Page 56 and 57: 56 note 34. related party transacti
Page 58 and 59: 58 2009 Date of acquisition share o
Page 60 and 61: 60 note 40. Discontinued operations
Page 62 and 63: 62 BoarD of DirecTors anD auDiTors
Page 64 and 65: 64 suBsiDiaries Bisnode operates in
Page 66 and 67: 66 five-year suMMary SEK millions 2
Page 68: Mailing address: Bisnode, S168, SE-

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