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Anoto Group — Annual Report 2009
Apr 6, 2010
3134_10-k_2010-04-06_6656a32e-c548-4e0d-a481-9210f6ac00ff.pdf
Annual Report
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A n n u a l R e p o r t 2 0 0 9
Contents
| A word from the CEO | 2 |
|---|---|
| The Business Model | 4 |
| Anoto 10 year s | 9 |
| Anoto Products | 10 |
| Anoto Technology & Licensing | 14 |
| The Share | 18 |
| Five-year Summar y | 20 |
| Definitions | 21 |
| Management Repor t | 22 |
| Financial Repor ts | 25 |
| Notes | 34 |
| Audit Repor t | 55 |
| Corporate Governance | 56 |
| Board of Director s | 59 |
| Group Management | 60 |
| Annual General Meeting | 61 |
WHAT DOES ANOTO DO?
Anoto develops pens that turn handwritten text and drawn illustrations into digital information, enabling a multitude of possibilities for quick and reliable distribution and storage. Anoto's digital pen technology also creates opportunities to make information more interactive.
WHAT DOES ANOTO OFFER ITS CUSTOMERS?
Together with its partners, Anoto offers cost-saving and effective solutions for mobile registration of data and interactive applications. All of this is provided within a single system consisting of a software application, digital pens, and unique pattern technology.
WHO ARE ANOTO'S CUSTOMERS?
Anoto's end-customers operate in a number of different segments that require simple and mobile solutions to capture handwritten information. Examples include Healthcare, where our solutions are used for tasks such as registering medical journals, and Facility Management, in which many companies often use forms. Other customers develop interactive conference and educational material for companies, students and pre-school children.
WHERE DO ANOTO'S REVENUES COME FROM?
Anoto's revenues primarily come from the sale of digital pens and technology licenses.
FIVE STRONG ARGUMENTS FOR ANOTO'S TECHNOLOGY
- It's as easy to use as pen and paper
- It's mobile and can be used anywhere without any great need for infrastructure such as computers and networks
- It's efficient information doesn't need to be entered twice
- It's a reliable but also cost-effective and environmentally efficient solution
- It provides interactivity in a simple way
Strong growth and improved earnings
- Net sales for 2009 increased by 43% to MSEK 206 (144)
- The result after taxes was MSEK -21, which is an improvement of MSEK 40 on 2008
- Earnings per share amounted to SEK -0.16 (-0.47)
- Cash flow for the year was MSEK -19 (-32)
- The positive effects of the acquisition of Hitachi Maxell's digital pen operations became clear in 2009, with digital pens now accounting for 43% of net sales (37%)
- Several customers within Technology & Licensing have launched their own interactive products during the year, such as whiteboards, flip char ts, etc. based on Anoto's technology
- • Anoto's digital pen, in combination with paper forms, continues to be successful within the Healthcare sector around the world, and Anoto Products is growing steadily with new par tners and new application areas
key ratios for the Group
| (SEK thousand) | 2005 | 2006 | 2007 | 2008 | 2009 |
|---|---|---|---|---|---|
| Net sales | 113 230 | 108 725 | 122 733 | 143 975 | 205 862 |
| Other income | 19 180 | ||||
| Gross profit/loss | 79 395 | 78 404 | 111 145 | 98 662 | 142 472 |
| Operating profit/loss | -79 775 | -131 823 | -19 592 | -51 645 | -20 848 |
| Profit/loss after tax | -13 884 | -132 965 | -16 749 | -60 903 | -20 678 |
| Cash flow for the year | 169 554 | -31 649 | -48 540 | -31 957 | -18 574 |
| Earnings per share (SEK) | -0.11 | -1.03 | -0.13 | -0.47 | -0.16 |
| Shareholders' equity per share (SEK) | -4.39 | -3.56 | -3.52 | -3.8 | -3.65 |
| Equity/assets ratio (%) | 79 | 80 | 81 | 81 | 84 |
| Average no. of employees | 110 | 121 | 103 | 127 | 113 |
NET SALES (SEK THOUSAND)
Profit/loss after tax (SEK thousand)
Cash flow for the year (SEK thousand)
Equity/assets ratio %
A good 2009 and a good basis for continued success
The 2009 financial year resulted in a good performance and was fully in line with our expectations. Sales increased by just over 40 percent, driven in par ticular by Anoto Technology & Licensing. Bottom-line earnings improved by SEK 40 million and cash flow also improved.This shows that we are on the right path.
A new company celebrating its 10th year
These successes are founded on our unique product offering. An offering based on the CTechnologies scanning pen introduced 12 years ago and which Anoto, which celebrated its 10th anniversary in 2009, is constantly developing. But it is also founded on the strategy that we established in 2006, primarily based on three cornerstones:
A new business model
The first cornerstone is a new business model that is focused on the market and on customer needs more than on our cutting-edge technology. In practice this means that, within carefully chosen market segments with scope for development, we look to cooperate with equally carefully chosen par tners that bring exper tise in marketing and application of the technology.
A larger share of the value chain
Another cornerstone is to take a larger share of the value chain.This was the rationale behind the acquisition of Maxell's production of digital pens in mid-2008.This business was successfully integrated with Anoto during the year and we can now deliver a complete digital pen instead of only technology.This not only enables us to increase value per customer. It also allows us to ensure functionality for both par tners and end-users, and we can be more responsive to new needs and functions. The greatest advantage that it offers, however, is
that we can standardize and develop our AFS platform for digital pen technology, enabling us to create more reliable, better and less expensive solutions.This is fully in line with our vision of creating a global standard for digital pen technology.
Better cost-effectiveness
The third cornerstone of our strategy is strict cost control.This has meant that, despite increased sales, we have been able to keep fixed costs for comparable units at the same level over recent years.
Huge market potential
The pen has been the simplest and most impor tant information tool for the past 6,000 years. It is still the most impor tant tool for mobile documentation and is frequently used within a range of sectors and businesses for specific activities such as sales, checking, marking, record-keeping and logistics, to name but a few. Pens are needed everywhere and Anoto's digital pens can often do the same task, only better.This means that the market is almost endless.We need to set our priorities, and have therefore chosen a number of large global market segments where we see growth potential.
Until now Anoto Products has mainly focused on the Healthcare sector.This sector includes a number of processes in which our technology can create significant added value in the form of lower costs and better quality for end-
user processes. However, we have also identified a number of other segments that we consider to be of interest within Banking and Finance,Transpor t & Logistics, and other areas.
Within Anoto Technology & Licensing, which is growing rapidly, we already see major potential for efficiency improvements within the area of education. Demand is being
driven by the prioritization of this area by both public authorities and private companies. One exciting example is our par tner TStudy in South Korea, that with our help, is developing an application for effective homeschooling. Another example is Polyvision®, which launched its interactive ēno™ whiteboard in 2009.We are constantly looking for new areas to develop.
Increased volumes are highest priority
Our focus on growth within carefully chosen segments is star ting to generate results, and we are seeing higher growth in all these areas. Increased volumes also provide us with the opportunity to develop more steadily over time, since a single order will not have such an effect on results in a par ticular quar ter.
We are pleased to note that Anoto is getting close to generating positive earnings. Our high contribution margin ratio does not require par ticularly large volume increases for us to achieve a profit and to fur ther improve profitability in the long term.
Our par tner-based business model also means that in the longer term we can increase volumes without significantly increasing our overhead costs. Intensified par tner cooperation and finding new par tners are therefore a top priority.
New ideas take time
With good products and significant market potential our sales trend might well be expected to show a sharp upward trend. But the sale of new ideas takes time.We are definitely seeing considerable and increasing interest from par tners and potential customers.The challenge is to persuade them to switch from their old systems.We do this by primarily working with market segments that often use paper-based processes for which Anoto's technology offers quicker, more reliable and more cost-effective management of information.
We believe that growth will continue to increase. Both market reactions and our financial performance indicate that we are on the right path.
A good basis for continued success
Stable owners, no debt, good liquidity and improved cash flow also provide us with a good basis to manage both rapid growth and competition.
Our solution is precise and simple to use, while the technology behind it is complex, proven and protected by a broad por tfolio of patents.
We have full control over the complete solution, including patterns, platforms and pens, which makes sales, suppor t and customer relations easier.
Our own platform,AFS, also creates new oppor tunities to find new par tners, such as system integrators, with a focus on implementing Anoto's product offering in existing systems.
Anoto's 10 years in the market have provided us with a strong global footprint. By this I am not referring to our international sales offices, but mainly to the fact that our solutions are now in use across all continents.Anoto is the company that potential customers primarily think of with regard to digital pen technology.
Last but not least, we also have highly skilled and committed staff. I would like to take the oppor tunity to thank them for their exceptional work in 2009.
Overall, I can only see an exciting and promising future for Anoto.
Anders Norling CEO and Head of Group Lund, Sweden, March 2010
Mobile, efficient, accurate and interactive data capture
We live in a complex world that places ever-increasing demands on information, education, checking procedures and, in particular, documentation of numerous processes. Information has traditionally been registered, produced, stored and distributed on paper. But for an increasing number of people it is becoming increasingly important to access information quickly from anywhere in the world. These needs, together with greater cost-effectiveness and environmental efficiency requirements, are driving demand for digital document management.
Anoto's market is based on the need to accurately capture data directly at source, irrespective of location. It is also based on the increased interactivity with which we are faced each day in the form of touch-sensitive monitors, multiple-choice questions in educational settings, game consoles and buyer assistance in shops, to mention just a few examples.
The simplicity of writing with the possibilities of digital technology
Our business is based on a digital pen that is available in a number of models. Most of the pens can be used to write with, but primarily they digitally capture and store records and notes via the pen's built-in camera and image processing technology. Using a cable, Bluetooth® connection or the mobile Internet, these records can be transferred to a designated computer anywhere in the world.
The camera registers the pen's movements over a pattern of nearly invisible dots on a writing surface such as paper forms, whiteboards, flip charts or books. The dot pattern is supplied as a computer file so that each user can print their own unique pattern on note paper or other writing surfaces.
The dot pattern makes it possible to link audio comments to a note or illustration through a built-in microphone featured in some of the pen models. These comments, or other sounds, can also be played back via a small speaker included in certain pen models.
Anoto's unique dot pattern consists of small, nearly invisible dots printed onto an imagined grid. The dot pattern codes the x and y coordinates in a large continuous area. Anoto's dot pattern can be printed on regular paper using a normal printer. Both images and text can be printed out on top of the unique pattern.
Connecting pen and paper to the digital world
Our core business idea is to take advantage of the benefits of the simplicity and availability of the pen's handwritten text, together with the possibilities of digital documents in terms of processing, storing and distributing information.
The traditional benefits offered by a pen are built into Anoto's pens, which can register handwritten text and illustrations. But unlike traditional pens, our pens can transfer the information they capture to a designated computer in the same room or anywhere in the world. This gives users the ability to register and transfer information directly at source without any great need for computers and networks. This prevents duplication of work and the risk of errors. In short, we offer a simple, fast, reliable, efficient and mobile solution for making handwritten information easily accessible.
Interactive solutions for better learning
We are also developing our technology further by working with partners to apply our unique dot patterns to other writing surfaces such as textbooks, whiteboards, flip charts and exercise books.
For these solutions, the educational sector is in focus, and we are developing pens based on our proven technology but that are adapted for these applications. This enables us to increase the effectiveness and interactivity in educational and information-oriented settings. The solutions that we are developing together with our partners enable an entire group to work interactively. This means less time spent on documentation and
Left Down
Anoto's unique dot pattern consist of numerous small black dots that can be read by the digital pen. There are around 700,000 dots on an A4 sheet of paper.
more time on teaching. And that makes for more stimulating and effective learning.
Our application provides a simple solution for users that does not require a complex electronic writing surface. This provides a better solution and greater precision at a significantly lower cost than alternative technologies.
Our technology is also used in children's educational books that contain our almost invisible dot pattern, so that our partners' pens equipped with small speakers can link sounds to text and images.
Applications for a number of growing markets
There is an endless number of areas in which handwritten documentation needs to be saved for future use and where our applications can create significant added value for users. One example is the Healthcare sector, where all actions taken need
to be documented. The Banking and Insurance sector uses large numbers of forms, as do many public organizations. There are also interesting areas within Facility Management, such as inspection and security surveillance, that often require notes to be taken.
We see a considerable need for innovative solutions within Education, which is another of our prioritized segments. This is a large sector that ranges from pre-schools through universities to internal corporate education. This is also a market that we expect to expand. This is partly because a lack of past investment worldwide in this area now means that the educational sector needs to upgrade facilities, and partly because the knowledge society is becoming more complex, which is also increasing the need for education. Other segments that require interactive solutions include gaming and entertainment, personal productivity and toys.
TECHNICAL PLATFORM ANOTO PRODUCTS Anoto Technology Licensing
A partner-driven business model
Partners for faster growth
In order to reach our chosen market segments we work with partners all over the world. Together with them we create commercial applications that are based on our technical platform and our partners' expertise in applications and marketing. Our partners contribute by meeting specific requirements and requests that end-users have and that are necessary for a successful application. This cooperation provides us with quicker access to important knowledge about current market segments. Above all, we gain access to new markets that are of interest, providing us with good growth opportunities. Cooperation with partners also means that applications for several markets can be developed in parallel. In short, this approach enables us to quickly and significantly increase our volumes without substantially increasing our total costs.
An organization adapted to the market
In order to obtain the best organization of our technical platform we have divided our business into two distinct application areas: Anoto Products and Anoto Technology & Licensing. These two areas are optimized to handle the demands of their respective market segments and customer groups. Our sales organization is also organized to provide optimum support for these areas.
Anoto Products
Anoto Products focuses on systems, services and products primarily within forms processing, with partners including system integrators, software developers and IT consultants. These partners offer corporate customers and end-users customized solutions based on Anoto's digital pen and paper technology. The basis of this offering is Anoto's digital pen, in combination with our Anoto Forms Solution software platform, which we have developed and are constantly developing. The technology can be applied in any situation where information is captured by non-deskbound, mobile staff at separate locations within a business or out in the field.
Anoto Technology & Licensing
Technology & Licensing develops and sells digital pens and related technology on an OEM basis to market-leading customers. Customers develop their own product offerings based on the technology and pens that they purchase from Anoto. A number of these products are interactive, enabling real-time audio or visual feedback. These types of application include educational toys and tools, equipment for visual communication such as whiteboards, and solutions within the field of personal productivity.
A successful strategy
This new strategy, which was established at the end of 2006 with a focus on customer needs instead of technology, and greater responsibility for the entire value chain, has proved successful. Between 2006 and year-end 2009 Anoto increased sales by 89 percent. We now have around 330 partners, and the number of partners is constantly increasing. This allows for additional growth of both sales and earnings.
Continued work to develop the business
Our ambition is to set a global standard for digital pen technology. Our approach is based on us being the leading and preferred partner in those segments in which we have chosen to operate. To this end, and to continue our growth and increase our profitability, our work is based on six strategies.
Concentration
We are focusing on and concentrating our resources within two application areas: Anoto Products and Anoto Technology & Licensing. This strategy resulted in the divestment in December 2008 of our subsidiary Logipard, since we deemed that it was neither part of our core operations nor strategically important. As a result of this, we will no longer provide reporting for the Imaging Technology application area. We will, however, continue to sell ASICs to existing customers. From 2010 onwards sales and earnings from this area will be reported under Other.
Focus on chosen market segments
The segments in which we operate currently include Healthcare and Education, which are two large markets with many processes where our technology can add value and where we have the opportunity to grow. Another market that we will prioritize over the coming year is Facility Management.
Of course, we are interested in all customers that could benefit from digital pens. However, we will continue to focus our resources on carefully chosen market segments. Our priorities are segments that can benefit from interactivity or that have a number
of processes with large flows of paper combined with mobile use. Other criteria are size and expected growth. A global perspective also provides us with the opportunity to cost-effectively get our solutions out onto a larger market and increase our international presence. We currently have good geographical coverage, with offices in Boston, Lund and Tokyo and partners on all continents.
Cooperation with partners
This geographical coverage provides us with good opportunities to find, assess and develop our partners. This is important, since they form a central and essential part of our business. We will therefore continue to cooperate with our existing partners while also actively recruiting new ones.
Greater control over the entire value chain
To safeguard the business and increase value per customer we want to have control over the entire value chain, from development, through production to marketing and sales. It is in this light that the 2008 acquisition of Hitachi Maxell's digital pens division should be viewed. Through our ability to now deliver complete pens for all customer applications, instead of only the technology, we can ensure both quality and supply as well increasing sales value per customer. This generates positive effects for our earnings.
Technical development
We are continuing to develop our core innovation – precise positioning and digital pens for different types of surfaces such as paper, whiteboards and monitors. Work is organized so that core research covers the entire business, while development is related to the respective application areas.
Patents
We patent our solutions not only to protect them, but also so that our partners feel secure in their cooperation with us. This is necessary in order for our partners to be prepared to invest both time and money in a joint development process and, in particular, in marketing. Since patent management is so key, we have our own internal patent department. In addition to seeking new patents and the protection of patterns, this department also monitors our more than 300 patents and 260 patent applications.
The areas marked in red show where Anoto's partners are located.
From idea to 10 years of business
Our company was born almost 16 years ago when Christer Fåhraeus came up with the idea of a pen that could read text using advanced imaging technology. Anoto AB was founded in 1999, followed in 2000 by the launch of the company's next product idea – Anoto's digital writing pen.
1996-1998 DEVELOPMENT
Research demonstrates the possibility of implementing the idea and of mass production at reasonable cost • A patent is sought for the pen, which is branded the C-Pen • C Technologies is formed • The C-Pen prototype is completed • The C-Pen is launched in Sweden
1999-2000 LAUNCH
Anoto is formed to establish a global standard for paper-based digital communication and to develop the Anoto writing pen • The concept is presented to world press in London in April 2000 to great interest • The C-Pen scanning pen is launched internationally
2005-2007 A NEW STRATEGY TAKES SHAPE
LeapFrog announces the launch of FLY Pentop based on Anoto's technology • Anoto opens an office in Oakland, California to create content and applications for consumer solutions • Company strategy is changed to focus on forms processing and business-to-business solutions • A new, more market-oriented company organization is implemented • The number of active forms users doubles in a year • Several landmark orders for solutions are received from both the Healthcare sector and other market segments • U.S.-based Livescribe acquires Anoto's subsidiary in Oakland and the rights to use Anoto's technology to develop the Pulse Smartpen for students and consumers
2008-2009 STREAMLINING
Hitachi Maxell's digital pen division is acquired at the end of 2008. This allows for both platform standardization and the ability to offer partners a complete solution • The Imaging Technology business area, including ASIC development and sales, is sold • The Anoto Qualified Solution program is launched • Significant cooperation within Technology & Licensing begins and several products are launched, including various whiteboard solutions. Significant growth and improved profitability
2001-2004 NEW COOPERATION PROJECTS
April 2002 witnesses the introduction of the first digital writing pen with wireless data transfer via Bluetooth® • A year later sees the launch of a second model with direct data transfer to a computer via cable • A third model is introduced with both Bluetooth® and cable link, a combined feature of all subsequent pen models • Hitachi Maxell launches a fourth digital pen on the Japanese market • HP introduces a solution using laser printers to print forms based on Anoto's technology • Cooperation begins with Standard Register (US) and the Dai Nippon printing group (Japan)
10 years of Anoto
Anoto Products focuses primarily on forms processing
According to Gartner, 85% of all business processes begin with a form. This is the market at which Anoto Products is aimed.
Anoto Products focuses on systems, services and products primarily within forms processing. Anoto uses an indirect business model and markets its products via partners, including system integrators, software developers and IT consulting companies.
These partners offer corporate customers and end-users customized solutions based on Anoto's digital pen and paper technology.
Anoto Products also includes the original C-Pen, which is used to capture and register selected information from printed sources such as books and magazines. We also sell other complete products, such as scanning and translation pens.
Our offering – a complete system
Aoto Products sells Anoto's digital pens, pattern, licenses and the solution platform AFS to partners for use in end-customer solutions. Digital pens and patterns are products that existing partners buy on a regular basis.
Anoto's main offering to new partners is called Anoto Forms Solution (AFS), which is a solution platform for forms. AFS eliminates the time-consuming manual steps in traditional forms management processes, making the process largely automated. The product comprises all the components needed to create and support a process to use digital pen and paper in order to store and transfer handwritten information from paper forms to any type of back-end system. AFS is a reliable, scalable and user-friendly solution that can be used for both small and large environments. AFS is the product that we market and sell to all new partners, since this solution allows them to create pilot products more quickly and focus on sales and implementation for end-customers.
A simple, effective and reliable solution
A key advantage of digital pen and paper is that it is as easy to use as normal pen and paper, which means considerably lower costs for training, support and maintenance compared with other digital technologies. In addition, digital pen and paper allows for faster processes, less risk of errors, greater productivity and other tangible cost-savings, since there is no need to duplicate the registration of information or to have copies of documents. Moreover, eliminating copies of documents makes for environmentally efficient solutions.
A good example of an end-customer within the Anoto Products area is the municipal authorities in Sweden. Four years ago Anoto's partner, Catrel, introduced the Mobipen Care IT system in home-help services in the Solna municipality, just outside Stockholm. This solution provides additional security for patients, their families and home-help staff. Each visit and service that is carried out is documented both in written form and digitally. This enables family members and managers to easily ensure that adequate care is being provided. Solutions with digital pen and paper are now used in over 40 municipalities, including Sundbyberg, Kristianstad, Lomma and Karlskrona. Other examples of applications are doctors' medical journals, parking tickets and order-taking. Anoto's digital pens can be used in all situations where information is captured by non-deskbound staff.
A n oto P r o d u c t s
User-friendliness is a key competitive advantage
Anoto's digital pen and paper is a unique and patented technology. There are no direct competitors to Anoto's digital pen and paper solutions for data capture using forms. Anoto mainly competes with other types of technology, such as tablet PCs, PDAs and smartphones. Market development is driven by increased knowledge about digital pen solutions and penetration in existing and new markets, as well as the need for cost-effective and user-friendly solutions. Independent surveys and endcustomers both demonstrate that Anoto's digital pen and paper technology is more user-friendly for data capture than other available technologies. Another competitive advantage that Anoto has is its large partner network with partners in more than 50 countries. Customers in a number of documented rollouts have confirmed that the total investment for a solution with Anoto's digital pen and paper generates significant cost benefits compared with PDAs and smartphones. In conclusion, the advantages of digital pen and paper are faster paper-based processes, less risk of error, greater productivity and tangible cost savings.
With Anoto penDocuments Pro handwritten notes are stored digitally when writing with Anoto's digital pen. There is immediate access to the digital copy, which can be sent anywhere in the world.
OFFERING:
Anoto Forms Solution, digital pen and pattern, together with a customer-specific application
Important events in 2009
- Anoto Products showed good growth compared with 2008, at 51%.
- Anoto Group received an order for 3,600 digital pens for the UK market as part of a contract within the state sector. This is one of our largest individual orders so far.
- Anoto received the Frost & Sullivan '2009 European Care Management Systems Industry Innovation and Advancement Award'. Anoto was awarded the prize for its technology for digital pen and paper within the European healthcare sector.
- AFS 2.0 is being finalized before its launch in 2010.
- About 60 new partners were recruited.
Financial performance
BETTER service FASTER
Challenge
Condition
Improving an old but crucial process
EMEF is the largest Portuguese maintenance company for rolling stock, such as electric and diesel locomotives and railcars. It is obligatory for the company to document events that occur during train trips. The train driver reports these events in a logbook, something that has been done for more than 50 years. EMEF wanted to improve the old, but crucial process, in order to better plan maintenance, reduce train downtime and increase train availability.
Information is transferred in real time
EMEF has therefore started using a digital pen and paper solution developed by Fluxima. A digital pen is integrated in an aluminum case in the driver's dashboard. When an event occurs during the trip, the driver opens the case, takes out the pen and writes in a logbook with Anoto functionality. As the driver puts back the pen into the case, the pen is connected to an embedded computer system, and the information is then sent in real time to the back office and workshops.
Thanks to the new solution, the personnel at the workshops can directly order material, and when needed send service technicians to quickly attend to the problem already at the next train stop. In the past, the service personnel only received the information during maintenance stops, which could delay the process, since regular maintenance stops are only performed at an interval of 10 to 30 days.
When the maintenance issue is solved, the service technician takes the pen and fills out the information in the logbook and signs off. The maintenance event report is now closed and transmitted to the customer – Portuguese Railways.
Result Better planned maintenance
Previously, if for example, a broken windscreen needed to be replaced, this was first discovered during regular checks and the train was taken out of operation. If spare parts were not available, it could take several days until the problem was solved. Today, as service personnel receive information in real time, they can work more proactively, and the necessary material and maintenance personnel can be arranged for in advance. Therefore, train availability has been increased. And, since maintenance can now be better planned, operational breakdown can be avoided and trains can keep their schedule. Furthermore, the new solution means that the handwritten information is directly transferred to the company's SAP database – which saves time and increases the reliability of the data. And in addition to this, EMEF's paper consumption has been reduced by 50%, corresponding to 1,500 trees in five years.
Read more on www.anoto.com
INSTANT COMMUNICATION ENSURES HEALTH
Too little, too late
The United Nations organization Food and Agriculture Organization (FAO), leads international efforts to defeat hunger. Too little, too late. That had long been the frustrating effect of FAO's drought and infectious disease programs in Sub-Saharan Africa. Due to electricity constraints and limited computer access, there was a lack of timely information from the various collecting sources – particularly those in remote areas – which was getting in the way of efficient and well-timed actions.
Digital pen revolutionizes data collection
Today, Anoto Digital Pen and Paper technology is being used by FAO in Namibia, Zambia, Mozambique, Malawi, Tanzania, Zimbabwe and Kenya. The application means that field workers register data with the digital pen into a specialized form, created by Xcallibre. Then, the information is saved in the pen's memory, awaiting transmission using GPRS or Internet. Next, the data is processed and sent by e-mail to the relevant actors, who can return instructions to field staff on what steps to take. "The pen appeared to be an almost revolutionary way to overcome a big problem with gathering data from the field and making timely decisions in case quarantine needed to be imposed. If there is a case of rabies or an outbreak of a deadly disease, a field worker can send the detailed surveillance data immediately only using a mobile", says Fred Musisi, FAO's Regional Emergency Livestock Officer.
Replacing frustration with success
With the help of Digital Pen and Paper technology, information is transmitted in real time and all the users and offices can simultaneously receive secure and controlled access to the information collected. Thanks to this, FAO can prevent outbreaks of diseases and the dramatic effects of sudden droughts or floods. This is of key importance, as severe drought since 2000 has lead to limited grazing and water points. Moreover, the solution has improved the information management capacity, since data collection methods now can be standardized throughout the region. After this successful implementation, FAO is now thinking about using digital pen and paper for the Cassava Disease Monitoring project, where the goal is to make cassava a key crop in order to fight hunger among farmer families and their domestic animals in Africa.
Read more on www.anoto.com
Challenge
Condition
Result
Anoto Technology & Licensing for education and entertainment
Technology & Licensing develops and sells digital pens and related technology on an OEM-basis to marketleading customers. These customers develop their own product offerings based on the technical components and pens that they purchase from Anoto. Examples of these sorts of products are educational toys and tools, equipment for visual communication such as whiteboards, and solutions within the field of personal productivity. A number of these products are interactive, providing real-time audio and visual feedback as users touch or write on interactive areas, i.e. surfaces with Anoto's pattern.
Our offering – a complete system
Technology & Licensing customers are offered either complete pens on an OEM-basis, or pen technology that customers can use to develop their own pens. Examples of complete pens include Polyvision® and Hamelin, while Livescribe and LeapFrog are examples of customers that have developed their own pen products. When we offer pen technology for specially developed pens, partners cooperate closely with Anoto's development department before a final product reaches the market.
Three integrated technologies
Solutions based on three integrated technologies:
Pen technology that comprises hardware and software components that can be incorporated with other products or form the basis for new products.
Software modules for the management of pattern and design, as well as print-out. The pattern can be printed out using standard offset, digital and laser printers and can even be printed on surfaces such as whiteboards, glass and LCD screens.
Anoto's API for software is used to develop, analyze, process and manage information from the pen.
Better opportunities to create customer value
Anoto's digital pen technology replaces existing technical solutions in a more cost-effective and userfriendly way than existing technology. The solution often results in a better ability to interact and sometimes leads to the creation of entirely new categories of products. An example of this is the Pulse Smartpen from Livescribe, which uses Anoto's technology to index sound recordings from events such as lectures. Users can add audio recordings from a lecture to their notes and play them back as often as they like.
Extensive cooperation with strong partners
Anoto enters into a smaller number of cooperation agreements within its Technology
& Licensing area, but these are larger in scope. Customers have their own marketing, distribution channels and unique market segments. The digital pens and solutions are usually unique for each customer, which means that cooperation makes considerable demands on development and resources in the start-up stages. In 2009 both Polyvision® and PLUS launched interactive whiteboards with digital pens based on Anoto's technology.
At the end of the year ACCO Brands Europe announced its cooperation with Anoto and how it has applied our technology within the area of digital flip charts. Anoto has developed a digital marker pen that makes it possible to transfer information digitally from a flip chart to a computer.
A n oto TE C HNOLO G Y & LI C ENSIN G
Better performance provides competitive edge
The competitive advantages of Anoto's technology over other solutions include its cost-effectiveness, flexibility and performance. Surfaces such as whiteboards, flip charts and books are simple to use and require no built-in electronics. They work using Anoto's unique dot pattern, which is read by a pen. The intelligence is in the pen, and the same pen can be used on different types of surfaces and multiple pens can be used on the same surface. In addition, the technology is equally precise over the entire surface, regardless of its size.
The picture shows LeapFrogs' pens Tag Reader och Tag Junior. The books are printed on paper with Anoto's unique dot pattern, which enables the pens to read text och illustrations. The pens have built-in spekers and children can therefore listen to their favourite stories.
OFFERING:
Technology & Licensing offers customers a complete system, providing for a range of products, based on three components: digital pen technology, paper/surface and pattern, and applications.
Important events
- Technology & Licensing demonstrated excellent growth of 70%.
- During the year Polyvision® launched a portfolio of ēno™ products (interactive whiteboards in various sizes): classic, mini, flex, click.
- Launch of LeapFrog Tag™ Junior.
- PLUS UPIC, a portable interactive whiteboard that can be rolled up, was launched.
- ACCO Brands' Nobo Kapture™ Digital Flipchart was launched at end of the year.
- Cooperation agreements in the area of education worth USD 3 million were signed in December with South Korean company TStudy.
Financial performance
USER-FRIENDLY teCHNOLOGY fOr positivE LEARNING
Challenge
Condition
Bringing achievement and learning to life
At Groesbeck Independent School District (ISD) in Groesbeck, Texas, there was one thing that Superintendent Dr. Harold Ramm and Technology Director Cathy Koenig desired: 21st century classrooms that utilize the most advanced educational technology to drive higher student achievement and learning to life. Interactive whiteboards are a critical component of the 21st century learning environment and Koenig was determined to find out which board worked best for the instructors in her district.
Interactive whiteboards connecting classroom technology to established curriculum
After having evaluated a number of interactive whiteboards with regard to durability, easeof-use and total cost of ownership, Groesbeck ISD selected PolyVision's ēno™ board, based on Anoto technology, to connect classroom technology to the school district's established curriculum. Because ēno™ is a three-in-one interactive whiteboard – enabling the use of magnets, markers and multimedia – teachers can combine various teaching methods in order to reach students with different learning needs.
With ēno™, teachers can use the wireless stylus, computer and projector to make the whiteboard interactive. Or, they can use traditional dry-erase markers on the ēno™ surface, just as they would with a traditional dry erase board. Furthermore, the magnetic surface also enables students to work with problem solution using magnetic manipulatives.
Result Positive learning and teaching with cutting-edge technology
year, we feel that all the pieces are in place to provide a positive teaching and learning environment to ensure that every kid is a
Before using ēno™, the teachers at Groesbeck ISD had to mount an interactive board over a traditional whiteboard. With ēno™, teachers can use the whiteboard the traditional way as well as interactively. In addition, since ēno™ does not require cords or cables, the teachers do not have to worry about children tripping over wires or costly installation. Furthermore, the technology is in the stylus and not the board. Therefore, should anything happen, the board does not have to be sent back for repair. Only the stylus has to be replaced, something which can be done already the same day. With ēno™, Groesbeck ISD can put cutting-edge technology in the hands of all students regardless of their economic background. "Our goal in the end is to prepare our students to be successful by providing them with first-inclass technology that is easy to use and has a direct impact on their learning experience and achievement. With our efforts over the last
winner.", says Dr. Ramm. Source: www.polyvision.com
FLEXIBILITY AND INTERACTIVITY PROVIDE STIMULATION
Talking books
LeapFrog is a leading designer, developer and marketer of innovative and educational products. The company focuses on developing products that make children's learning as effective and as fun as possible, both at school and at home.
In 1999 LeapPad introduced "a talking book" for children aged 4 to 8. LeapPad, "an electronic educational tool," was highly successful, with sales reaching more than 30 million LeapPad units since its launch and 72 million interactive books. Despite its success, the product had certain limitations. To listen to the books, users had to place the book on a special plastic board and inform the board that the book had been changed by loading it with a cartridge. In addition, it wasn't possible to flick through the books at random. Users had to press a page-change icon in order to read on. As a result of this, LeapFrog decided to develop a new product and the company presented its next-generation system Tag™ Reading System in June 2008.
Challenge
Making a normal book interactive
The Tag™ Reading System eliminated the cumbersome board that was previously required and LeapFrog is now able to produce books without limitations on size and shape. The product is based on Anoto's digital pen and paper technology and is aimed at children between the ages of 4 and 8. It is the first reading system that enables children, with the aid of a pen (Tag™ Reader), to interact directly with real books. The pen contains a sophisticated infrared camera and speaker and the books are printed on paper with Anoto's unique dot pattern, enabling the pen to interpret text and illustrations.
Condition
Flexible solution
Children can listen to the book by using the pen to touch different areas in the book. They can listen to the whole story, or skip between pages, lines or words in any order they wish. Using the pen, children can also activate songs and other sound effects, making the reading experience and learning process stimulating and fun. Online connection also provides children with fun rewards for their play and learning. And using LeapFrog's Learning Path parents can follow their child's development and progress online.
Result
Anoto Group AB (publ.) has been listed on the NASDAQ OMX Stockholm Stock Exchange (ticker: ANOT) since 16 June 2000. Today the share is listed on the Small Cap list of the NASDAQ OMX Nordic Exchange Stockholm. The share was previously traded on the New Market starting on March 15, 2000. Anoto Group's share capital of SEK 2,571,677 is allocated among 128,583,867 shares. Each share entitles the holder to one vote at general meetings and all shares provide equal rights to participation in the company's assets and profits.
SHARE PRICE PERFORMANCE AND TRADING
The price of the Anoto Group share increased by 117 per cent from SEK 1,81 to 3,92 during the year. During the same period, the Affärsvärlden General Index was up by 37 per cent and the Stockholm Stock Exchange IT Index increased by 47 per cent. Anoto Group's market capitalization was MSEK 504 on December 31, 2009. On March 15, 2010, the share price was SEK 5,40x and the market capitalization was MSEK 694.
A total of 105,429,980 Anoto shares were traded on the NAS-DAQ OMX Stockholm Stock Exchange in 2009, at a turnover rate of 82 per cent.
SHAREHOLDERS
At the end of 2009, Anoto Group had 8,268 shareholders. Foreign shareholders controlled 62 per cent; the ten largest shareholders 57 per cent; and institutional and industrial investors 85 per cent of the shares.
DIVIDEND POLICY
No dividend will be considered over the next few years. The company's future dividend policy will reflect its earnings, financial position and financing needs. Dividend proposals will be examined in the light of shareholder demands for a reasonable return and the company's internal financing requirements.
OPTION PROGRAMMES
The parent company currently has one outstanding stock option program with underlying warrants for employees. The 585,000 options that have been subscribed for expire on March 31, 2010.
Full exercise of all options that have been subscribed for would result in subscriptions for no more than 585,000 new shares, increasing the company's share capital by SEK 11,700 and diluting existing shares by 0,5 per cent. The issue price for options is SEK 18.00.
ANALYSTS
Anoto Group is covered by analysts at a number of banks and securities brokers, including Carnegie, Hagströmer & Qviberg and Redeye.
PER-SHARE DATA 2009
| 2009 | |
|---|---|
| Number of shares | 128 583 867 |
| Number of outstanding options | 0 |
| Average number of shares | 128 583 867 |
| Average number of outstanding options | 0 |
| Earnings per share (SEK) | -0.16 |
| Earnings per share incl. options (SEK) | -0.16 |
| Cash flow per share for the year (SEK) | -0.14 |
| Cash flow per share incl. options (SEK) | -0.14 |
| Shareholders equity per share (SEK) | 3.65 |
| Shareholders equity per share incl. options (SEK) | 3.65 |
LARGEST SHAREHOLDERS DECEMBER 31, 2009
| NAME | % | TOT AL |
|---|---|---|
| Essensor AS | 12,1% | 15 496 608 |
| Double Day Acquisition III LLC | 10,0% | 12 860 000 |
| Norden Technology AS | 7,4% | 9 500 000 |
| Swedbank Robur Fonder | 5,8% | 7 508 647 |
| DNB NOR Bank | 5,7% | 7 378 863 |
| Tor Aksel Voldberg | 5,1% | 6 500 000 |
| Barclays Bank | 4,8% | 6 170 114 |
| Home Capital AS | 2,6% | 3 312 610 |
| Morgan Stanley Co Int'l Ltd | 1,8% | 2 300 000 |
| Christer Fåhraeus | 1,6% | 2 040 913 |
Share price and trading volume Jan 2005 – FEB 2010
Share price and trading volume Jan 2009 – FEB 2010
SHAREHOLDERS BY SIZE, DECEMBER 31, 2009
| Holdings | Total number of shareholders |
% av total shareholders |
Hold collectlively number of shares |
% of share capital |
|---|---|---|---|---|
| 1-1000 | 5 821 | 70,4 | 1 837 906 | 1,4 |
| 1001-10000 | 1 937 | 23,4 | 7 465 098 | 5,8 |
| 10001-100000 | 428 | 5,2 | 12 190 856 | 9,5 |
| 100001- | 82 | 1,0 | 107 090 007 | 83,3 |
| 8 268 | 100,0 | 128 583 867 | 100,0 |
Five-year summary
Summary of comprehensive income statements
| (SEK thousand) | 2005 | 2006 | 2007 | 2008 | 2009 |
|---|---|---|---|---|---|
| Net sales | 113 230 | 108 725 | 122 733 | 143 975 | 205 862 |
| Other income | – | – | 19 180 | – | – |
| Gross profit/loss | 79 395 | 78 404 | 111 145 | 97 662 | 142 472 |
| Amortization – intangible fixed assets | -22 680 | -25 809 | -13 110 | -12 159 | -12 540 |
| Depreciation – property, plant and equipment | -3 644 | -1 709 | -2 077 | -3 011 | -1 914 |
| Operating profit/loss | -79 775 | -131 823 | -19 592 | -51 645 | -20 848 |
| Profit/loss on participations in Group companies | 70 457 | -769 | -252 | – | – |
| Profit/loss on other receivables that are non-current assets | – | – | – | -2 431 | – |
| Other financial items | -4 446 | 794 | 3 269 | -5 974 | -87 |
| Profit/loss after financial items | -13 764 | -131 798 | -16 121 | -60 050 | -20 935 |
| Tax | -120 | -1 208 | -628 | -853 | 257 |
| Profit/loss after tax | -13 884 | -133 006 | -16 749 | -60 902 | -20 678 |
Summary of financial position statements
| (SEK thousand) | 2005-12-31 | 2006-12-31 | 2007-12-31 | 2008-12-31 | 2009-12-31 |
|---|---|---|---|---|---|
| Assets | |||||
| Intangible fixed assets | 357 536 | 343 324 | 339 473 | 364 025 | 360 059 |
| Property, plant and equipment | 3 568 | 3 512 | 4 046 | 5 279 | 9 184 |
| Financial fixed assets | 5 346 | 5 080 | 8 560 | 30 599 | 2 835 |
| Total non-current assets | 366 450 | 351 916 | 352 079 | 399 903 | 372 078 |
| Inventory | 1 517 | 1 936 | 5 960 | 37 329 | 29 356 |
| Accounts receivable | 36 780 | 27 615 | 24 062 | 32 564 | 45 013 |
| Other current assets | 15 667 | 15 669 | 51 132 | 32 304 | 27 686 |
| Cash and bank balances, including current investments | 211 490 | 179 841 | 131 301 | 99 344 | 80 770 |
| Non-current assets for divestment | 74 235 | – | – | – | – |
| Total current assets | 339 689 | 225 061 | 212 455 | 201 541 | 182 825 |
| Total assets | 706 139 | 576 977 | 564 534 | 601 444 | 554 903 |
| Liabilities and shareholders' equity | |||||
| Shareholders' equity | 555 690 | 458 237 | 452 809 | 488 474 | 469 105 |
| Minority shareholdings | – | 1 959 | 2 069 | -160 | -1225 |
| Provisions (Non-interest-bearing) | – | – | 54 | – | – |
| Long-term liabilities (Non-interest-bearing) | 4 231 | 4 728 | 50 089 | 41 891 | 31 007 |
| Current liabilities (Non-interest-bearing) | 146 218 | 112 053 | 59 513 | 71 239 | 56 016 |
| Total liabilities | 150 449 | 118 740 | 111 725 | 112 970 | 85 798 |
| Total liabilities and shareholders' equity | 706 139 | 576 977 | 564 534 | 601 444 | 554 903 |
Summary of cash flow statements
| (SEK thousand) | 2005 | 2006 | 2007 | 2008 | 2009 |
|---|---|---|---|---|---|
| Profit/loss after financial items | -13 764 | -131 798 | -6 647 | -60 050 | -20 935 |
| Items that do not affect liquidity | -39 559 | 8 913 | 16 243 | 113 715 | 15 554 |
| Change in working capital | 60 251 | 73 642 | -39 015 | -9 318 | -17 641 |
| Cash flow from operating activities | 6 928 | -49 243 | -29 419 | 44 347 | -23 022 |
| Cash flow from investing activities | -14 933 | -14 190 | -20 808 | -40 257 | -14 933 |
| Total cash flow before financing activities | -8 005 | -63 433 | -50 227 | 4 090 | -37 955 |
| Cash flow from financing activities | 177 669 | 31 784 | 1 687 | -36 047 | 19 381 |
| Cash flow for the year | 169 554 | -31 649 | -48 540 | -31 957 | -18 574 |
Key ratios
| 2005 | 2006 | 2007 | 2008 | 2009 | |
|---|---|---|---|---|---|
| Sales growth, % | neg | neg | 13 | 17 | 43 |
| Gross margin, % | 70 | 72 | 89 | 68 | 69 |
| Operating margin, % | neg | neg | neg | -36 | -10 |
| Profit margin, % | neg | neg | neg | 23 | -10 |
| Capital employed (TSEK) | 555 690 | 460 196 | 454 878 | 488 314 | 467 880 |
| Return on capital employed, % | neg | neg | neg | 7 | -4 |
| Return on shareholders' equity, % | neg | neg | neg | 7 | -4 |
| Proportion shareholders' funds, % | 79 | 80 | 81 | 81 | 84 |
| Equity/assets ratio, % | 79 | 80 | 81 | 81 | 84 |
| Net debt/equity ratio, multiple | -0,38 | -0,39 | -0,29 | -0,20 | -0,17 |
| Net debt (TSEK) | -211 490 | -179 841 | -131 301 | -99 344 | -80 770 |
| Earnings per share (SEK) | -0,11 | -1,03 | -0,13 | -0,47 | -0,16 |
| Earnings per share after dilution (SEK) | -0,11 | -1,03 | -0,13 | -0,47 | -0,16 |
| Cash flow per share for the year (SEK) | 1,42 | -0,25 | -0,38 | -0,25 | -0,14 |
| Cash flow per share after dilution (SEK) | 1,40 | -0,25 | -0,38 | -0,25 | -0,14 |
| Shareholders' equity per share (SEK) | 4,39 | 3,56 | 3,52 | 3,80 | 3,65 |
| Shareholders' equity per share after dilution (SEK) | 4,32 | 3,56 | 3,52 | 3,80 | 3,65 |
| Average No. of employees | 110 | 121 | 103 | 127 | 113 |
| Sales per employee (TSEK) | 1 029 | 1 029 | 1 191 | 1 134 | 1 822 |
| Payroll expenses, incl. social security contributions (TSEK) | 95 829 | 121 822 | 88 394 | 106 375 | 95 530 |
| (of which, pension premiums) | 11 030 | 10 925 | 10 588 | 13 337 | 12 358 |
Definitions
Proportion shareholders' funds
Shareholders' equity, minority interests and deferred tax at the end of the year as a percentage of total assets
Return on shareholders' equity
Profit for the year as a percentage of average shareholders' equity
Return on capital employed
Profit after net financial income/expense plus interest expense, divided with an average of capital employed
Gross margin
Gross profit as a percentage of net sales. Gross profit is defined as net sales less cost of goods sold
Shareholders' equity per share
Shareholders' equity divided by the weighted average number of shares during the year
Average number of employees
Average number of employees during the year
Net debt Interest-bearing liabilities less liquid assets and current investments
Net debt/equity ratio
Net debt divided by shareholders' equity, including minority interests
Sales per employee Net sales divided by the average number of employees
Sales growth Increase in net sales as a percentage of net sales for the previous year
Earnings per share Profit after tax divided by the weighted average number of shares during the year
Operating margin
Operating profit/loss after depreciation and amortization as a percentage of net sales
Capital employed
Total assets less non-interest-bearing provisions and liabilities, including deferred tax liabilities
Equity/assets ratio
Shareholders' equity including minority interests as a percentage of total assets
Profit margin
Profit after financial income/expense as a percentage of net sales
Cash flow per share for the year
Cash flow for the year divided by the weighted average number of shares during the year
MANAGEMENT REPORT
The Board of Directors and CEO of Anoto Group AB (publ.), Corporate Identity No. 556532-3929, hereby submit the annual accounts and consolidated accounts for the January 1 – December 31, 2009 financial year.
GROUP STRUCTURE
Anoto Group AB is the holding company in the Group and performs group-wide functions. The operational activities are performed by the subsidiaries Anoto AB, C Technologies AB, Anoto Inc. and Anoto Maxell K.K.
ORGANIzATION
Anoto Group is a Swedish high-tech company that has developed a unique technology for digital pen and paper, enabling rapid, reliable transmission of handwritten text to digital media. The organization is split into three application areas, i.e. Anoto Products, Technology & Licensing and Imaging Technology. The entire business is based on digital camera technology and image processing in real time.
ANOTO APPLICATION AREAS
ANOTO PRODUCTS
Anoto Products focuses on systems, products and services, primarily in the field of forms processing. Anoto operates by an indirect business model marketing its products through partners, such as system integrators, software developers and IT consulting firms, all of which offer customized solutions with Anoto Digital Pen and Paper technology to their corporate customers and field users. Turnkey products, such as existing scanning and translation pens, as well as newly developed products including Anoto penPresenter and Anoto penDocuments, may also be marketed through other sales and distribution channels.
Anoto Products shows a 51 per cent growth in 2009. European as well as the North American markets are developing well, with continued focus on applications within the health care and clinical trials sectors. During 2009 Anoto was awarded " 2009 European Care Management Systems Industry Innovation and Advancement Award" by the industry analyst firm Frost & Sullivan. The price was awarded for the use of digital pen and paper technology within the European health care sector. The 2009 activities are characterized by a huge number of transactions within the health care sector along with transactions in other sectors, such as logistics. The global finance turmoil during 2009 has resulted in delayed business among our
partners, but no loss of business opportunities.
No single business transaction dominates the strong growth during 2009. The acquisition of the Hitachi Maxell digital pen division in the middle of 2008 proves its importance now that the sales of digital pens represents 43 per cent out of the total sales volume.
The development of the new AFS 2.0 platform, now including encryption i.a., was completed in 2009. Sales will start early 2010, and we expect to start end-customer installations in 2010.
TECHNOLOGY & LICENSING
Technology & Licensing develops and sells digital pen technology and digital pens on an OEM basis to market leading customers. The customers develop their own product offers based on technology components and pens provided by Anoto. Several of these products are interactive, enabling real-time audio or visual feedback while writing or when touching interactive areas. Customer developed products are e.g. learning toys, educational tools, visual communication equipment and personal productivity solutions.
The sales growth within Technology & Licensing was 70 per cent in 2009. Several new important cooperations were started, while earlier partnerships developed well.
In early 2009 our partner PolyVision launched the first whiteboard based on Anoto technology. Anoto has during 2009 delivered pens to these whiteboards and also received royalty for whiteboard surface sold.
A similar cooperation agreement was signed with the Japanese company PLUS, who based on the Anoto technology develops a foldable interactive whiteboard.
In late 2009 Anoto and the South Korean company TStudy Co., Ltd. entered into a partnership in the educational area aiming at developing Anoto technology into solutions for the school system.
Early March 2010 Aurora Investment Ltd., South Korea, announced their intention to offer Anoto's shareholders to transfer 20 per cent of their Anoto shares to Aurora at SEK 5.40 per share. The offer will be presented to Anoto's shareholders on March 25, 2010. Aurora Investment Ltd. is a daughter company of KDB-TStone Private Equity Fund, South Korea, which is also the parent company of Anoto's customer, TStudy Co., Ltd.
IMAGING TECHNOLOGY
Imaging Technology develops and markets basic Anoto technology, such as ASICs and IP blocks. During 2009 the activities were dominated by ASIC sales to a limited number of customers. The sales development
has been declining and dropped by 32 per cent.
The application area supplies technology modules, components and function blocks for integration in customer products.
SHARES AND SHAREHOLDERS
The company had 128,583,867 shares as of year-end. According to VPC AB statistics, there were 8,268 shareholders on December 31, 2009, representing an increase of approximately 11 per cent over the past 12 months. The largest shareholders were Essensor AS (12.1 per cent of the votes and capital) and Double Day Acquisition III LLC (10.0 per cent of the votes and capital).
EMPLOYEES
The average number of employees within the Group decreased from 127 to 113 in 2009. The Group had 107 employees (105) at the year-end.
REMARKS ON the STATEMENT of comprehensive income
Net sales for the year increased by 43 per cent, from MSEK 144 to MSEK 206.
38 per cent of the Group's income is in USD and 46 per cent in EUR. During the year, the Group hedged its currency net flows in USD, EUR and JPY over the next six months period. (Refer to the section on risk management.).
The Group's gross profit for the year rose to MSEK 142 (98), while its gross margin was 69 per cent (68). The gross margin has increased slightly in spite of a greater portion of sold hardware, digital pens. The portion of sold digital pens now represents 43 per cent (37) of the total net sales.
Overhead costs increased by 10 per cent, primarily due to a full year effect of the larger organization as a result of the acquisition of the Hitachi Maxell digital pen division in July 2008, and the effect of currency fluctuations when converting costs of foreign subsidiaries into Swedish currency. The Group capitalizes noncustomer financed development expenses meeting the IAS 38 criteria, a total of MSEK 4 (20) in 2009. The operating result for the year was MSEK -21 (-52).
REMARKS ON THE STATEMENT oF financial position andthe statement of changes in cash flow
The total assets dropped by MSEK 47, mainly because long term receivables dropped to MSEK 3 . The negative cash flow for the year was MSEK -19, reducing liquid assets to MSEK 81. Long and short term liabilities decreased by MSEK 26 to MSEK 87. Out of the liabilities MSEK 40 represent prepaid royalty, for which Anoto has no obligation to repay or deliver any services.
The Group's liquid assets, including current investments, was MSEK 81 at the end of 2009, compared to MSEK 99 at the end of 2008.
Shareholders' equity of MSEK 469 on 31 December, compared to MSEK 488 last year, represented an equity/assets ratio of 84 per cent (81).
The cash flow from operating activities was MSEK -23 (44).The working capital increased by MSEK 18. Investing activities consumed MSEK 15 (40), of which MSEK 4 (20) for capitalized development expenses during the year. Financing activities MSEK 19 (-36), The total cash flow for the year ended up at MSEK -19 (-32).
INVESTMENTS
Capital expenditure in 2009 totalled MSEK 15 (40).
RESEARCH AND DEVELOPMENT
The Group's R&D efforts are focused on upgrading and integration of electronic hardware and software for the development of digital pen and paper solutions. The Group spent MSEK 64 (65), or 39 per cent (42) of its total operating costs, on R&D in 2009. The number included MSEK 5 (5) for amortization of capitalized development expenses. Pursuant to its compliance with IAS 38, the Group capitalized MSEK 4 (20) in new development expenses during the year. Including capitalization, the Group's total 2009 R&D costs totalled MSEK 68 (85).
Anoto has an extensive patent portfolio. At the end of 2009, the Group had 263 active patent applications and 296 registered patents.
DISPUTES
Anoto is currently not engaged in any dispute deemed to significantly affect its financial position.
ENVIRONMENT
Anoto does not pursue any activities that require environmental permits. None of its units is environmentally certified.
RISK MANAGEMENT
The Group conducts the main part of its sales internationally, thus a majority of the contracts is in EUR USD or Yen. As a significant part of the costs is in SEK and USD, margins and earnings are sensitive to currency fluctuations, mainly in Euro. The Anoto Group parent company handles all trading in financial instruments
aiming at reducing the Group's currency exposure. In 2009, approximately 38 per cent of the total income was related to USD and 46 per cent to EUR.
Refer to Note 4 for a detailed description of the company's risk management policies.
The BOARD AND ITS RULES OF PROCEDURE
The Anoto Group AB Board of Directors consists of five regular members. Refer to page 56 - 58 of this Annual report under the section entitled "Corporate Governance Report" for a detailed account of the Board's composition and working methods.
The 2009 Annual General Meeting authorized the Board to decide on one or more directed share issues totalling no more than 12,000,000 shares prior to the next Annual General Meeting – as well as to depart from the preferential rights of shareholders in order to enable the acquisitions of businesses or operations by paying wholly or partially with shares.
GUIDELINES ON REMUNERATION FOR SENIOR EXECUTIVES
Remuneration for the CEO and senior executives in 2009 appears in Note 10, "Salaries and other remuneration". The Board has proposed to the Annual General Meeting that the guidelines on remuneration for senior executives remain unchanged in 2010.
SIGNIFICANT EVENTS AFTER YEAR-END
No significant events have occurred after the year-end.
OUTLOOK
After a somewhat varying year it is gratifying to have a strong finish in 2009 showing steady growth in turnover and results. We see continued sales growth in Anoto's two core areas, Anoto Products and Technology & Licensing.
The market for digital transmission of data has after years of test and evaluation started to gain high acceptance among customers, and we see steadily growing sales in the years to come.
The mobile data transmission market is very wide and so Anoto has focused on a number of segments, such as Health care and Education.
Anoto will as a pioneer meet some new challenges, but with increased control of the value chain, a pen of our own and a customized platform make us well prepared for growing demands in mobile data transmission.
PROPOSED APPROPRIATION OF ACCUMULATED Result
Proposed appropriation of accumulated profit in the parent company (SEK):
| Total | 30 670 232 |
|---|---|
| Profit for the year | 1 166 735 |
| Profit brought forward | 948 143 |
| Share premium reserve | 28 555 354 |
The Board of Directors and CEO propose that the unappropriated profit of SEK 30 670 232 be retained by the Company.
With regard to the financial position of the Group and parent company, refer to the following accounts.
STATEMENT OF COMPREHENSIVE INCOME
| Group | |||
|---|---|---|---|
| (SEK Thousand) | Note | 2009 | 2008 |
| Net sales | 5 | 205 862 | 143 975 |
| Cost of goods and services sold | 12 | -63 390 | -46 313 |
| Gross profit/loss | 142 472 | 97 662 | |
| Selling expenses | 9,10,15,33,34 | -83 951 | -68 953 |
| Administrative expenses | 9,11,15,33,34 | -20 225 | -18 620 |
| Research & development costs | 9,15,34,35 | -63 731 | -64 695 |
| Other operating income | 13 | 5 981 | 4 703 |
| Other operating costs | 14 | -1 394r | -1 742 |
| Operating profit/loss | 12 | -20 848 | -51 645 |
| Share of earnings in associated companies | - | -2 431 | |
| Financial income | 16 | 1 433 | 2 795 |
| Financial cost | 16 | -1 520 | -8 769 |
| Profil/loss before taxes | -20 935 | -60 050 | |
| Taxes | 18 | 257 | -853 |
| Loss for the period | -20 678 | -60 903 | |
| Closed operations | |||
| Profit from closed operations | - | 91 352 | |
| Profit/loss for the year (including closed operations) | -20 678 | 30 450 | |
| Other comprehensive income/cost | |||
| Translation differences for the year Total comprehensive income/cost for the year |
94 -20 584 |
2 911 33 360 |
|
| Total profit/loss for the year | |||
| attributable to: Shareholders of Anoto Group AB |
-19 594 | 33 281 | |
| Minority shareholders | -1 084 | -2 832 | |
| Total profit/loss for the year | -20 678 | 30 450 | |
| Total comprehensive income/cost for the year | |||
| attributable to: | |||
| Shareholders of Anoto Group AB | -19 519 | 35 611 | |
| Minority shareholders Total comprehensive income/cost for the year |
-1 065 -20 584 |
-2 250 33 360 |
|
| Earnings per share ongoing operations (SEK) 1) | -0,16 | -0,47 | |
| Earnings per share ongoing operations after dilution (SEK) 2) | -0,16 | -0,47 | |
| Earnings per share (SEK) 1) | -0,16 | 0,24 | |
| Earnings per share after dilution (SEK) 2) | -0,16 | 0,24 | |
| Earnings per share on total comprehensive income/cost for the year (SEK) 1) |
-0,16 | 0,26 | |
| Earnings per share on total comprehensive income/cost for the year after dilution (SEK) 2) |
-0,16 | 0,26 | |
| Weighted average number of shares | 128 583 867 | 128 583 867 | |
| Weighted average number of shares after dilution 3) | 128 583 867 | 128 583 867 |
1) Profi/Loss for the year attributable to shareholders of Anoto Group AB divided by the average number of shares during the year.
2) Profit/Loss for the year attributable to shareholders of Anoto Group AB divided by the sum of the weighted average number of shares during the year and the weighted average number of outstanding warrants whose exercise price was less than the closing share price for the year. Warrants give rise to a dilutive effect only when their conversion to shares generates poorer earnings per share (IAS 33, Earnings per share).
3) Only warrants whose exercise price is less than the closing price for the year are included.
STATEMENT OF FINANCIAL POSITION
| Group | |||
|---|---|---|---|
| (SEK Thousand) | Note | 2009-12-31 | 2008-12-31 |
| ASSETS | |||
| Non-current assets | |||
| Intangible fixed assets | |||
| Capitalized development expenditures | 19 | 26 450 | 26 580 |
| Patents | 20 | 26 163 | 28 866 |
| Goodwill | 23 | 298 674 | 302 496 |
| Brands | 21 | 607 | 334 |
| Other intangible assets Total intangible fixed assets |
22 | 8 165 360 059 |
5 749 364 025 |
| Property, plant and equipment | |||
| Equipment and tools | 24 | 9 184 | 5 279 |
| Total property, plant and equipment | 9 184 | 5 279 | |
| Financial fixed assets | |||
| Shares in group companies | 25 | - | - |
| Shares in associated companies | 26 | - | 1 640 |
| Other long-term securities | 27 | 872 | - |
| Other long-term receivables | 28 | 1 963 | 28 959 |
| Receivables - group companies | - | - | |
| Total financial fixed assets | 2 835 | 30 599 | |
| Total non-current assets | 372 078 | 399 903 | |
| Current assets | |||
| Inventory | |||
| Finished goods and goods for sale | 29 356 | 37 329 | |
| Current receivables | |||
| Accounts receivable | 29 | 45 013 | 32 564 |
| Other receivables | 21 258 | 16 777 | |
| Prepaid expenses and accrued income | 30 | 6 428 | 15 527 |
| Total current receivables | 72 699 | 64 868 | |
| Liquid assets | 80 770 | 99 344 | |
| Total current assets | 182 825 | 201 541 | |
| TOT AL ASSETS |
554 903 | 601 444 |
| Group | |||
|---|---|---|---|
| (SEK Thousand) | Note | 2009-12-31 | 2008-12-31 |
| LIABILITIES AND SHAREHOLDERS EQUITY | |||
| Shareholders equity | 40 | ||
| Share capital | 2 572 | 2 572 | |
| Other capital contributed | 448 508 | 448 508 | |
| Other reserves | -118 | -152 | |
| Profit brought forward and Profit/loss for the year | 18 143 | 37 546 | |
| Equity attributable to the shareholders of Anoto Group AB | 469 105 | 488 474 | |
| Equity attributable to minority interests | -1 225 | -160 | |
| Long-term liabilities/Provisions | |||
| Other liabilities | 31 007 | 41 891 | |
| Total long-term liabilities/Provisions | 31 007 | 41 891 | |
| Current liabilities | |||
| Provisions for product warranties | 31 | 706 | 800 |
| Accounts payable | 18 767 | 12 034 | |
| Tax liabilities | - | 813 | |
| Advance payments from customers | 11 853 | 12 400 | |
| Other liabilities | 4 344 | 23 979 | |
| Accrued expenses and deferred income | 32 | 20 346 | 21 213 |
| Total current liabilities | 56 016 | 71 239 | |
| TOT AL LIABILITIES AND SHAREHOLDERS EQUITY |
554 903 | 601 444 | |
| Pledged assets | 35 | 12 591 | 8 542 |
| Contingent liabilities | 36 | 888 | 4 721 |
Statement OF changes in CASH FLOW
| Group | ||||
|---|---|---|---|---|
| (SEK Thousand) | Note | 2009 | 2008 | |
| OPER ATING ACTIVITIES |
||||
| Profit after financial items | -20 935 | -60 050 | ||
| Change in provisions | -94 | -907 | ||
| Depreciation and amortization on assets | 15, 19-24 | 14 454 | 15 170 | |
| Disposal of assets | 15, 19-24 | 1 044 | 6 313 | |
| Cost for options | 150 | 56 | ||
| Sale of business | 38 | - | 93 936 | |
| Tax paid | 18 | - | -853 | |
| Cash flow from operating activities before change in working capital | - 5 381 | 53 665 | ||
| Cash flow from change in working capital | ||||
| Change in operating receivables | -261 | 10 326 | ||
| Change in inventory | 7 973 | -31 369 | ||
| Change in operating liabilities | -25 353 | 11 725 | ||
| Total change in working capital | -17 641 | -9 318 | ||
| Cash flow from operating activities | -23 022 | 44 347 | ||
| Capital expenditure | ||||
| Capitalized development expenditures | 19 | -4 430 | -20 134 | |
| Patents | 20 | -4 082 | -5 747 | |
| Brands | 21 | -338 | -7 | |
| Goodwill | - | -3 822 | ||
| Other intangible assets | 22 | - | -6 439 | |
| Equipment & tools | 24 | -5 899 | -4 108 | |
| Shares in group companies | -184 | - | ||
| Cash flow from net capital expenditures | -14 933 | -40 257 | ||
| Total cash flow before financing activities | -37 955 | 4 090 | ||
| Financing activities | ||||
| Change in long term liabilities | - | -8 198 | ||
| Change in long term receivables | 19381 | -27 841 | ||
| Translation differences | - | -8 | ||
| Cash flow from financing activities | 19 381 | -36 047 | ||
| Cash flow for the year | -18 574 | -31 957 | ||
| Liquid assets at beginning of the year | 99 344 | 131 301 | ||
| Liquid assets at end of the year | 80 770 | 99 344 |
.
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
| (SEK Thousand) | Share capital | Other capital contributed 2) |
Revaluation reserves 1) |
Profit brought forward inclu ding profit for the year |
Shareholders' equity contri butable to the shareholders of Anoto Group AB |
Minority interest |
Total shareholders' equity capital |
|---|---|---|---|---|---|---|---|
| GROUP EQUITY |
|||||||
| Shareholders' equity January 1, 2008 | 2 572 | 448 508 | -3 063 | 4 791 | 452 808 | 2 069 | 454 877 |
| Total comprehensive profit for the year | - | - | 2 911 | 32 699 | 35 610 | -2 229 | 33 381 |
| Adjustment costs for options | - | - | - | 56 | 56 | - | 56 |
| Shareholders' equity December 31, 2008 | 2 572 | 448 508 | -152 | 37 546 | 488 474 | -160 | 488 314 |
| Total comprehensive profit for the year | - | - | 34 | -19 553 | -19 519 | -1 065 | -20 584 |
| Adjustment costs for options | - | - | - | 150 | 150 | - | 150 |
| Shareholders' equity December 31, 2009 | 2 572 | 448 508 | -118 | 18 143 | 469 105 | -1 225 | 467 880 |
1) From translation of Financial reporting from foreign subsidiaries
2) Includes parent company statutory reserve and premium reserve from share issues. For changes in these items references are made to Changes in parent company equity see page 33
INCOME STATEMENT
| Parent company | ||||
|---|---|---|---|---|
| (SEK Thousand) | Note | 2009 | 2008 | |
| Net sales | 5 | 9 126 | 30 044 | |
| Cost of goods and services sold | - | - | ||
| Gross profit/loss | 9 126 | 30 044 | ||
| Selling expenses | 9,10,15,33,34 | - | -6 919 | |
| Administrative expenses | 9,11,15,33,34 | -723 | -17 048 | |
| Research & development costs | 9,15,34,35 | - | -4 299 | |
| Other operating income | 13 | 120 | 40 | |
| Other operating costs | 14 | -7 361 | - | |
| Operating profit/loss | 12 | 1 162 | 1 818 | |
| Share of earnings in associated companies | ||||
| Interest and similar income | 17 | 10 | 1 148 | |
| Interest and similar cost | 17 | -5 | -2 021 | |
| Profil/loss before taxes | 1 167 | 945 | ||
| Taxes | 18 | - | - | |
| Profit/loss for the year | 1 167 | 945 | ||
| Earnings per share ongoing operations (SEK) 1) | 0,01 | 0,01 | ||
| Earnings per share ongoing operations after dilution (SEK) 2) | 0,01 | 0,01 | ||
| Earnings per share (SEK) 1) | 0,01 | 0,01 | ||
| Earnings per share after dilution (SEK) 2) | 0,01 | 0,01 | ||
| Weighted average number of shares | 128 583 867 | 128 583 867 | ||
| Weighted average number of shares after dilution 3) | 128 583 867 | 128 583 867 |
Profi/Loss for the year attributable to shareholders of Anoto Group AB divided by the average number of shares during the year.
2) Profit/Loss for the year attributable to shareholders of Anoto Group AB divided by the sum of the weighted average number of shares during the year and the weighted average number of outstanding warrants whose exercise price was less than the closing share price for the year. Warrants give rise to a dilutive effect only when their conversion to shares generates poorer earnings per share (IAS 33, Earnings per share).
3) Only warrants whose exercise price is less than the closing price for the year are included.
BALANCE SHEET
| Parent company | |||
|---|---|---|---|
| (SEK Thousand) | Note | 2009-12-31 | 2008-12-31 |
| ASSETS | |||
| Non-current assets | |||
| Intangible fixed assets | |||
| Patents | 20 | 577 | 675 |
| Brands | 21 | 51 | 36 |
| Total intangible fixed assets | 628 | 711 | |
| Property, plant and equipment | |||
| Equipment and tools | 24 | 113 | 356 |
| Total property, plant and equipment | 113 | 356 | |
| Financial fixed assets | |||
| Shares in group companies | 25 | 267 194 | 267 194 |
| Receivables - group companies | 77 505 | 77 505 | |
| Total financial fixed assets | 344 699 | 344 699 | |
| Total non-current assets | 345 440 | 345 766 | |
| Current assets | |||
| Accounts receivable | 29 | - | 63 |
| Receivables from subsidiaries | 106 637 | 116 040 | |
| Other receivables | 1 480 | 1 118 | |
| Prepaid expenses and accrued income | 30 | 103 | 2 091 |
| Total current receivables | 108 220 | 119 312 | |
| Cash and bank balances | 1 286 | 897 | |
| Total current assets | 109 506 | 120 209 | |
| TOT AL ASSETS |
454 946 | 465 975 | |
| LIABILITIES AND SHAREHOLDERS EQUITY | 40 | ||
| Shareholders equity | |||
| Restricted equity | |||
| Share capital | 2 572 | 2 572 | |
| Statutory reserve | 419 610 | 419 610 | |
| Total restricted equity | 450 737 | 450 737 | |
| Non restricted capital | |||
| Share premium reserve | 28 555 | 28 555 | |
| Profit brought forward | 948 | - | |
| Profit for the year | 1 167 | 948 | |
| Total non restricted equity | 30 670 | 29 503 | |
| Equity attributable to the shareholders of Anoto Group AB | 452 852 | 451 685 | |
| Current liabilities | |||
| Accounts payable Other liabilities |
17 235 |
983 7 315 |
|
| Accrued expenses and deferred income | 32 | 1 842 | 5 992 |
| Total current liabilities | 2 094 | 14 290 | |
| TOT AL LIABILITIES AND SHAREHOLDERS EQUITY |
454 946 | 465 975 | |
| Pledged assets | 35 | - | - |
| Contingent liabilities | 36 | - | - |
CASH FLOW statement
| Parent company | ||||
|---|---|---|---|---|
| (SEK Thousand) | Note | 2009 | 2008 | |
| OPER ATING ACTIVITIES |
||||
| Profit after financial items | 1 167 | 945 | ||
| Depreciation and amortization on assets | 15, 19-24 | 240 | 235 | |
| Tax paid | 18 | - | -6 | |
| Cash flow from operating activities before change in working capital | 1 407 | 1 174 | ||
| Cash flow from change in working capital | ||||
| Change in operating receivables | 11 092 | -74 759 | ||
| Change in operating liabilities | -12 196 | 6 716 | ||
| Total change in working capital | -1 104 | -68 043 | ||
| Cash flow from operating activities | 303 | -66 869 | ||
| Capital expenditure | ||||
| Patents | 20 | -19 | -25 | |
| Brands | 21 | -22 | - | |
| Equipment & tools | 24 | 127 | -105 | |
| Cash flow from net capital expenditures | 86 | -130 | ||
| Total cash flow before financing activities | 389 | -66 999 | ||
| Financing activities | ||||
| Cash flow from financing activities | - | - | ||
| Cash flow for the year | 389 | -66 999 | ||
| Liquid assets at beginning of the year | 897 | 67 896 | ||
| Liquid assets at end of the year | 1 286 | 897 |
CHANGES IN SHAREHOLDERS' EQUITY
| (SEK Thousand) | Share capital | Statutory reserve |
Total restricted equity |
Share premium reserve |
Profit brought forward inclu ding profit for the year |
Total unrestricted capital |
Total equity |
|---|---|---|---|---|---|---|---|
| PARENT COMPANY'S EQUITY |
|||||||
| Shareholders' equity January 1, 2008 | 2 572 | 419 953 | 422 525 | 28 555 | -343 | 28 212 | 450 737 |
| Appropriation of previous year´s loss | - | -343 | -343 | - | 343 | 343 | 0 |
| Profit for the year | - | - | - | - | 948 | 948 | 948 |
| Shareholders' equity December 31, 2008 | 2 572 | 419 610 | 422 182 | 28 555 | 948 | 29 503 | 451 685 |
| Profit for the year | - | - | - | - | 1167 | 1167 | 1167 |
| Shareholders' equity December 31, 2009 | 2 572 | 419 610 | 422 182 | 28 555 | 2 115 | 30 670 | 452 852 |
The change in number of shares and their par value, see below.
All shares are fully paid and entitles the holder to an equal percentage of dividend.
| Increase in | |||
|---|---|---|---|
| No. of shares | No. of shares | Par value/ share | |
| Registered opening balance January 1, 2008 | 128 583 867 | SEK 0,02 | |
| Registered closing balance December 31, 2008 | 128 583 867 | SEK 0,02 | |
| Increase in | |||
| No. of shares | No. of shares | Par value/ share | |
| Registered opening balance January 1, 2009 | 128 583 867 | SEK 0,02 | |
| Registered closing balance December 31, 2009 | 128 583 867 | SEK 0,02 |
Notes (SEK thousand, unless otherwise indicated)
Note 1 | General accounting policies
The consolidated accounts of Anoto Group AB (Anoto) have been prepared in compliance with the Swedish Annual Accounts Act, International Financial Accounting Standards (IFRS), interpretations from International Financial Reporting Committee (IFRIC) as accepted by EU and the Swedish Financial Reporting Board recommendation RFR 1.2 "Complementary accounting standards for group accounting". The parent company's annual accounts have been prepared in compliance with the Swedish Annual Accounts Act (ÅRL) and the Swedish Financial Reporting Board recommendation RFR 2.2, Accounting for Legal Entities. The consolidated and annual accounts, which are specified in SEK thousand, refer toJanuary 1 - December 31 for income statement items and December 31 for balance sheet items.
The annual report and consolidated accounts have been approved for distribution by the Board and the CEO on March 25, 2010. The Group income statement and balance sheet will be subject to approval by the Annual General Meeting on May 5, 2010.
Note 2 | Anoto's accounting policies
THE GROUP
Other than the revaluation of certain financial instruments, the consolidated accounts are based on historical cost. The accounting policies applied by the Group are described below.
The parent company´s functional currency, Swedish Crowns, is also the reporting currency for the group.
Below is a summary of the accounting principles used by the group. The accounting principles have, with the exceptions described, been applied consequently to all periods presented, in the groups financial reports. The group accounting policies have been applied accordingly by all group companies.
Consolidated accounts
The consolidated accounts cover Anoto Group AB (publ.), the parent company, and the companies in which the parent company has a controlling interest. Controlling interest means the direct or indirect right to outline a company´s financial and operational strategies in order to achieve economic benefits.
The consolidated accounts have been prepared in accordance with the purchase method.
The historical cost is the sum of the fair values of assets paid, accrued or overtaken liabilities, as well as for the equity instruments that Anoto has issued in exchange for the controlling interest in the acquired unit, along with all costs directly attributable to the acquisition.
The historical cost is allocated among the unit's identifiable assets, contingent and other liabilities that meet the criteria for accounting in accordance with IFRS 3, Business Combinations, reported at fair value. If the historical cost exceeds net acquired assets and liabilities in accordance with the above, the difference is reported as goodwill.
Deferred tax is calculated as 26,3% of the difference between the fair values of assets and liabilities reported and tax residual values insofar as the difference is not part of untaxed reserves. Group equity includes the Group's participation in shareholders' equity earned by group companies after acquisition, as well as minority shareholdings in the equity of group companies.
All intra-Group transactions are eliminated in the consolidated accounts. Intra Group transactions include internal sales, profits and balances, as well as shareholders' contributions to group companies and impairment losses on participations in group companies.
A functional currency is assigned to each foreign subsidiary.
The foreign subsidiaries that have a different functional currency than Anoto's functional currency (the Swedish Crown) are recalculated at the exchange rate on the balance sheet date for all balance sheet items and at the average exchange rate for all items included in the result.
The translation differences that arise stem from the difference between the average exchange rates in the income statement and the exchange rates on the balance sheet date, as well as the translation of net assets at a different exchange rate as of year-end than as of the beginning of the year. Translation differences are reported in the statement of comprehensive income as a translation difference for the period and is accumulated in the equity as specific item..
Exchange rates
At recalculation of foreign subsidiaries uses these exchange rates.
| Average exchange rate | On balance sheet date | ||||
|---|---|---|---|---|---|
| Country | Currency | 2009 | 2008 | 2009 | 2008 |
| United States | USD | 7,646 | 6,581 | 7,213 | 7,753 |
| Japan | JPY (100) | 8,178 | 6,402 | 7,845 | 8,600 |
Associated companies
Associated companies are those in which the Group controls 20-50% of the votes or otherwise exerts significant influence over operating and financial management. Associated companies are reported based on equity accounting. In accordance with equity accounting, investments in associated companies are reported in the statement of financial position at historical cost, adjusted for changes in the Group's participation in the associated company's net assets. The Group's share of the associated company's profit/loss is reported in the consolidated statement of comprehensive income. The Group's share of the associated company's profit/loss after financial income/expense is included in theprofit/loss on participations in associated companies item, whereas the Group's share of the associated company's tax expense is included in the tax on profit/lossfor the year item.
Revenue recognition
Revenue is received from product sales, licenses, royalties and development projects. Revenue from product sales is recognised when essentially all risks and rights associated with ownership have been transferred to the purchaser, normally at the time of delivery.
Revenue from non fixed-term licenses is directly reported as of the invoice date.
For instance, license revenue may involve a certain degree of exclusivity or contributions for, or access to, a platform.
Royalties are reported during the same month as the partner makes the actual sale.
Revenue attributable to development projects, Non Refundable Engineering (NRE), is recognised in the same period as the service is rendered. The extent to which each development project has been completed is normally based on a quarterly analysis. The project's estimates are updated with the costs until the current date in order to determine the percentage of the total estimated costs that have accrued. An anticipated loss on a project is reported immediately as a cost.
Goodwill
Goodwill reported in connection with the acquisition of subsidiaries in accordance with the above is initially reported as an asset at historical cost. As described in note 23 the Group has no independent cash generating units and the Group as a whole is viewed as one cash generating unit, thus there has been no split of the goodwill amount.
Goodwill is not amortised but subject to an impairment test annually or whenever needed by calculating the recoverable amount of the corresponding cash-generating unit. The recoverable amount is defined as the asset's net realisable value or value in use, whichever is higher. The impairment test allocates goodwill among the cash-generating units that are expected to benefit from acquisition synergies. An impairment loss is recognised if the value of the unit reported by the Group exceeds the recoverable amount. The impairment loss is charged to earnings for the year.
Goodwill aquired before January 1, 2004: The Group has at the transition to IFRS not adopted IFRS retrospectively as per transition date. Reported net book value thus equals net book value as per January 1, 2004 having considered periodic impairment testing.
Research and development
Expenses for research related to aquiring new scientific or technical knowledge are expensed immediately as they occour. Expenses for development, where the results from research or other knowledge are applied to acheive new or improved products, are reported as an asset in the statement of financial position if the product is technically or comercially useful and if the company have sufficient recources to complete the development and
thereafter use or market the immaterial asset. The reported value includes all directly attributable expenses such as material and services, payroll and registration of legal rights. Other expenses related to development are expensed directly as they occour. In the statement of the financial position development expenses are reported at actual cost less accumulated amortization and writedowns.
Other intangible assets
Other intangible assets acquired by the Group mainly relate to patents, brands and licenses and are reported at acquisition cost less accumulated amortizations and writedowns.
Property, plant and equipment
Property, plant and equipment consisting of equipment, computer equipment and computer programs is reported at accumulated depreciation according to plan and any impairment losses. Aquisition cost includes purchase price and expenses directly attributable to the bringing of the asset to its use as intended with the aquisition. Other expenses are added to the aquisition cost only if it is probable that such expenses will lead to future economic benefits and if such expenses can be calulated properly. Other related costs are reported as expenses as they occur.
Depreciation and amortization according to plan
Depreciation and amortisation according to plan are based on the historical costs and estimated economic useful lives of the assets in view of the following depreciation and amortisation periods:
| - Patents | 10 years |
|---|---|
| - Capitalized development expenditures | 3-5 years |
| - Brands | 10 years |
| - Equipment | 5 years |
| - Computer equipment and programs | 3 years 1) |
| - Capital expenditure on rented assets | 2-5 years 2) |
1) Capitalized computer programs refer to CAD programs that are essential to the ongoing product development effort.
2) Depreciations varies between 2 -5 years depending on lease terms.
Impairment losses
If there is an indication that a Group asset has decreased in value, its recoverable amount is determined. The recoverable amount is defined as the asset's net realisable value or value in use, whichever is higher. When determining the value in use, the present value of the future cash flows that the asset is expected to give rise to during its useful life is estimated. An impairment loss is recognised if the Group's reported value exceeds the recoverable amount, and the impairment loss is charged to earnings for the year.
Writedown of financial assets
At the time of each reporting the company evalutes the existence of objective evidence of an impairment in financial assets such as identifiable occurances having a negative effect on the possibilities to regain the aquisition cost.
Leases
Lease contracts are classified as either financial or operational leases. In a financial lease, the financial risks and benefits related to ownership are essentially transferred to the lessee. If that is not the case, it is an operational lease. The Anoto Group has no significant financial lease contracts. Cost for operational leases are distributed evenly over the lease period.
N ot e s
Profit per share
The calculation of profit per share is based on the annual result in the group attributable to the sharholders of the parent company and the weighted average of outstanding shares during the year. When calculating the profit per share after dilution the result and the average number of shares is adjusted in order to consider potential dilution from preference shares, which during the reporting period relats to options granted to employees. The dilution from options affects the number of shares and occurs only when the strike price is below market price.
Receivables and liabilities in foreign currencies
Receivables and liabilities in foreign currencies are reported at the exchange rate on the balance sheet date, and unrealised exchange gains and losses are included in earnings. Exchange gains/losses on operating receivables and liabilities are reported as other operating income/expenses. Exchange rate differences on financial receivables and liabilities are reported as financial items.
Financial instruments
The Group's financial instruments consist mostly of accounts receivable, liquid assets, accounts payable and financial derivative instruments in the form of currency forward contracts.
Liquid assets
Liquid assets consist of cash and bank balances, as well as current investments. A current investment is classified as a liquid asset if it can easily be converted to cash at a known amount and it is exposed to only a negligible risk of value fluctuations.
Loans and accounts receivable
Loans and accounts receivable are montary asstes which are not derivatives, that have defined payment plans or identifyable payments and which are not listed on an active market place. These assets are valued at historical cost. Accounts receivable are reported net after deduction of doubtful accounts receivable.
Financial assets/liabilities valued at actual cost through result
This category consists of two subgruops: financial assets/liabilities held for trade and other financial assets/liabilities which the group have chosen to report in this category. A financial assets is classified as held for trade if aquired with the intention to sell at short term. Derivatives are classified as held for trade. Assets/liabilities in this category are valued at market value and gains/losses are reported in the result.
Derivatives held for trade by Anoto relates to securing of future (6 months) net cash flows in EUR, USD and JPY.
Unlisted shares
The company´s ownership of unlisted shares are valued at aquisition cost in accordance with the exception rule in IAS39 related to equityinstruments whose actual cost cannot be accurately determined.
Accounts payable
Accounts payable are reported at the amount the company plans to pay the supplier in order to liquidate the debt.
Currency forward contracts and hedge accounting
The Group uses currency forward contracts to hedge the net flow of foreign currencies up to 12 months. The size of each contract is based on rolling liquidity forecasts for following periods. The Group continually orders contracts in line with recieved payments in foreign currensies . The primary purpose of hedging is to shield the Group from major changes in cross rates. Hedging does not meet the criteria of IAS 39, Financial Instruments: Disclosure and Presentation, for hedge accounting. Thus, changes in the value of all currency forward contracts are reported in the Statement of comprehensive income as other operating income/expense.
Inventory
Inventory, consisting of finished products and critical components, is reported at historical cost (in accordance with FIFO) or net realisable value, whichever is lower.
Pensions and compensations to employees
All pension commitments have been taken over by insurance companies and classified as defined contribution pension plans. Pension premiums are carried as expenses in the period that employees rendered the associated services.
As part of incentive programmes, the Group has issued stock options and warrants to employees. The fair value of employee stock options on the distribution date are reported as a cost in the income statement. The fair value is calculated in accordance with the Black-Scholes Model. The total costs are allocated during the period in which the options are earned. The cost is reported under administrative expenses. Social security expenses related to share based instruments to employees as renumeration for services are allocated during the periods in which the services are provided. The provision for social security is based on market value of the shares at the time of the reporting.
Market value is calculated using the same valuation model as was used at the time granting the options.
Taxes
All tax deemed payable on reported earnings is reported in the anuual result. The tax has been calculated in accordance with each country's tax regulations and included in the tax on profit/loss for the year item.
The Group's total tax in the statement of comprehensive income consists of current tax on taxable earnings for the period and deferred tax. The Group's tax consists primarily of current tax on taxable earnings of foreign subsidiaries for the period.
The Group uses the balance sheet method to calculate deferred tax assets and liabilities. In accordance with the balance sheet method, the calculation is based on tax rates as of the balance sheet date as applied to temporary differences between the reported and tax value of an asset or liability, as well as tax loss carry-forwards. Deferred tax assets are reported in the statement of financial position only in amounts that can presumably be utilised within the foreseeable future.
Reporting cash flow
The cash flow statements are prepared in accordance with the indirect method, i.e., profit/loss after financial items is adjusted for transactions that have not given rise to payments or disbursements during the period, as well as for any income and expenses attributable to the cash flow of investing activities.
Provisions
A provision is reported when there is a commitment as the result of an event, it is probable that an outflow of resources will be required to settle the commitment and an amount can be reliably estimated. The following provisions are reported in the statement of financial position: product warranties.
Contingent liabilities
Contingent liabilities are reported if there is a possible commitment that is
confirmed only by multiple uncertain future events and it is unlikely that an outflow of resources will be required or that the size of the commitment will not be calculable with sufficient precision.
Disclosures about related parties
For disclosures about the company's transactions with related parties, refer to Note 10 "Remuneration for senior executives" and Note 42 "Related party transactions. There were no other transactions with related parties.
Segment reporting
Anoto Group have not identified any segments.
The evaluation of the group results is based on three application areas for which actual Net sales and Gross profit are disclosed. The application areas utilize common recourses with regards to development and administration and a split of costs below Gross profit would be possible only if based on rough estimates. The same applies also to the Group assets & liabilities. Evaluation of Group expenses is applied to the Group as a whole.
Changed Accounting principles
Below is a summary of changed accounting policies adopted by Anoto from 1st of January 2009. Other IFRS changes have been judged not to have any material effects on Group accounts.
Presentation of financial statements
Changes in IAS 1 Presentation of financial statements (2007) means that income and costs earlier recoded directly to Equity now is recorded in other comprehensive income/cost presented in quarterly and annual reports. Anoto have adopted the new definitions according to IAS 1 – Statement of comprehensive income, Statement of financial position, Statement of changes in equity and Statement of changes in cash flow. Comparison periods have been amended accordingly in the annual report. As the changes only applies to definitions no amounts have med amended.
Operating segements
As of January 1st Anoto applies the new IFRS 8 Operating segements replacing IAS 14 Segment reporting. The adoption of IFRS 8 have not had any effect on segments disclosed by Anoto.
Financial instruments disclosures
Changes in IFRS 7 Financial instruments disclosures mainly relates to the requirements for new disclosures with regards to financial instruments held at market value such as; level of instrument, quality of indata and changed requirements regarding disclusures of liquidity risk.
New IFRS and interpretaions valid from 2010 ( not yet in force)
Revised IFRS 3 Business combinations and the revised IAS 27 Consolidated and separated financial statements will be adopted from January 1st 2010 leading to the following changes: change in definition of a business, transaction costs related to aquisitions shall be expensed, conditional purchase price shall be determined as actual value at time of aquisition and effects of debt settlements related to conditional purchase price shall be accounted as income or cost in the annual result. Other news; there will be two alternative ways to disclose minority and goodwill, either at actual cost i.e. goodwill is included in minority or as an alternative minority is included in net assets. The selection between the two alternatives shall be made for each aquisition separately. Additional aquisitions after attaining controlling influence are viewed as ownership transactions and shall be accounted directly through equity which is a change from the current accounting treatement where amounts exceeding actual cost are treated as goodwill.
PARENT COMPANY
For details of the parent company's accounting policies, refer to the Group's accounting policies above. The section below is limited to the parent company's deviations from the Group's policies.
Financial instruments
The parent company does not apply the presentation rules of IAS 39. The parent company reports financial fixed assets at historical cost less any impairment losses and financial current assets at the lower of cost or net realisable value.
Holdings in subsidiaries and associated companies
Holdings in group and associated companies are reported at historical cost. If the reported value of the investment exceeds the recoverable amount (refer to section above on impairment losses), an impairment loss is recognised.
Shareholders' contributions
Shareholders' contributions are reported as an increase in the participations in group companies item, after which an impairment test is performed on the value of the shares.
Note 3 | Assessments when applying the Group's accounting policies and the main sources of uncertain estimates
Critical assessments when applying the company's accounting policies
When applying the Group's accounting policies (as described in Note 3), management has made the following assessments that have the most significant impact on the amounts that appear in the financial reports.
Key sources of uncertainty in the estimates
The information below concerns key assumptions about the future and other key sources of uncertainty in the estimates on the balance sheet date that entail significant risk of substantial adjustments to reported assets/liabilities for the next financial year.
Note 4 | Risk management by the Group
The Anoto Board of Directors has adopted a financial policy for:
- Simplifying and harmonising the Group's financial activities
- Defining rules for the financial risks that are accepted by the Board
- Adopting guidelines for the Group to operate independently
- Delegating management of financial risks to the CFO
The areas of the financial policy that most affect Anoto's management of risks are liquidity and currency.
Liquidity policy
In accordance with the Finance policy of the Group the cash need of the Group is continuously updated. These cash flow analyses gives information about cash planning, deposits, interest periods etc. In accordance with the liquidity policy, available cash shall consist of cash and negotiable securities with an official credit rating equivalent to Moodys P1.
Currency exposure and currency policy
Transaction exposure
Transaction exposure arises when income and expenses are in different currencies. Anoto has large exposure to the USD ,EURO and JPY because most of its invoicing is in those currencies. In accordance with its 2008 currency policy, Anoto hedge its currency exposure in these currencies over the next six months period by the means of currency forward contracts.
Revaluation exposure
Hedging of revaluation exposure is determined by the group finance policy. Currently no hedging of the revaluation exposure is undertaken as the risk is limited. An annual analysis of the risk takes place in order to identify changes in exposure.
Net flows by currency 2009
Sensitivity analysis
The impact on profit/loss before tax of a 5% change in exchange rates is: USD/SEK +/- 0,4 MSEK
| EUR/SEK | +/- 4,1 MSEK |
|---|---|
| JPY/SEK | +/- 0,1 MSEK |
Impairment tests for goodwill
When testing for impairment losses, the value in use is calculated for the cashgenerating unit to which goodwill has been allocated. The value in use is based on the estimated future cash flows that the cash-generating unit is expected to give rise to. The reported value for goodwill is SEK 298 million as of the balance sheet date. For additional information about impairment losses, refer to Note 23.
Impairment tests for capitalized development expenditures
When testing for impairment losses, the value in use is calculated for the technology and products developed by the company. The value in use is based upon the estimated futured cash flows that the technology and products are expected to generate.
Other risk areas
Other areas covered by the financial policy are:
- interest rate risks Anoto has no external borrowing, as the result of which there are no interest rate risks
- financing risks
- guarantees and contingent liabilities
Other risk management
Credit risk
The management of credit risks can be broken down into commercial risks and financial risks. The provisions set aside for bad debt losses as of the balance sheet date have not identified any commercial credit risks. The financial credit risk is managed as part of the Group's finance policy refer to liquidity policy above.
Insurance risk
The Group's insurance coverage is reviewed annually with respect to traditional business insurance policies for property, liability, travel, etc. Anoto's insurance policy for patent disputes expired in 2005 and has not beenrenewable on reasonable terms. However, claims filed before the policy expired are still covered. The company plans to take out an insurance policy for patent disputes as soon as it can do so on reasonable commercial terms.
Patent risks, etc.
Anoto continually expands its patent portfolio by applying for patents on innovations linked to Anoto technology in order to supplement previous patent applications and patents granted. Anoto cannot guarantee that all patent applications will be approved or that our intellectual property rights will not be called into question, declared null and void or circumvented. Third parties have claimed, and may do so in the future as well, that Anoto infringes their intellectual property rights. Defending Anoto against such assertions can be costly in terms of time, money and other resources. Legal disputes can compel Anoto to pay damages or other compensation, modify itsproducts and technology or enter into license agreements. Anoto cannot guarantee that such licenses will be available at all or on reasonable terms.
Liquidity risk
Anotos liquid assets, as cash and bank deposits, amounted at the end of 2009 to MSEK 81. The Group has neither any interest bearing Liabilities nor pledged Accounts Receivables, Inventory or Fixed assets. The Board of Anoto foresee that the operations during 2010 can be financed by existing liquid assets without any borrowings from banks or other credit institutes. The unstable credit market and the limited availability of funds is deemed to have no impact on Anoto. We have no opnion which impact this limitation will have for Anotos customers.
Supplier and vendor risk
Anoto has no manufacturing unit of its own, so the company's products and components are manufactured by a number of sub-suppliers. Anoto's volumes are small, and so it is not economically plausible to have several suppliers for one and the same component. Should a sub-supplier not be able to fulfil its obligations, or in any other way disrupt the cooperation with Anoto, this may cause delays in Anoto's pen deliveries to its customers.
Note 5 | Net sales
| Group sales per market : | Group | |||
|---|---|---|---|---|
| 2009 | 2008 | |||
| Sweden | 41 623 | 39 278 | ||
| Rest of EU | 57 662 | 39 537 | ||
| USA | 57 826 | 40 123 | ||
| Japan | 26 117 | 7 642 | ||
| Rest of Asia | 12 881 | 5 260 | ||
| Rest of the world | 9 753 | 12 135 | ||
| Total | 205 862 | 143 975 |
Group sales per product group:
| Group sales per product group: | Group | |
|---|---|---|
| 2009 | 2008 | |
| Royalty | 18 563 | 15 876 |
| NRE 1) | 8 964 | 10 182 |
| Licenses | 48 948 | 28 871 |
| Components | 21 764 | 27 495 |
| Pens | 89 270 | 57 099 |
| Other | 18 353 | 4 452 |
| Total | 205 862 | 143 975 |
1) Revenues from software/hardware development of customers products
| Group Net sales and Gross profit per application area | Net sales Gross profit |
|||
|---|---|---|---|---|
| 2009 | 2008 | 2009 | 2008 | |
| Anoto Products | 127 043 | 84 609 | 86 720 | 60 988 |
| Technology & Licensing | 63 213 | 37 121 | 49 109 | 23 664 |
| Imaging Technology | 15 606 | 22 245 | 6 643 | 13 010 |
| Total | 205 862 | 143 975 | 142 472 | 97 662 |
Note 6 | Average number of employees
| 2009 | 2008 | ||||
|---|---|---|---|---|---|
| No. of employees | Of which men | No. of employees | Of which men | ||
| Parent company 1) | 0 | 0 | 11 | 5 | |
| Rest of sweden | 96 | 68 | 101 | 79 | |
| USA | 8 | 5 | 7 | 4 | |
| Japan | 9 | 6 | 8 | 5 | |
| Total | 113 | 79 | 127 | 93 |
1) The parent company is registered in Sweden
Note 7 | Board of Directors and management split, by gender
| 2009 | 2008 | |||
|---|---|---|---|---|
| No. of employees | Of which men | No. of employees | Of which men | |
| Board of Directors 1) | 5 | 4 | 7 | 6 |
| Management Parent company | - | - | 3 | 3 |
| Management Group companies (Sweden) | 6 | 5 | 3 | 2 |
| Total 2) | 11 | 9 | 13 | 11 |
1) Parent company. 2) Including board members of the parent company and management in group companies
Note 8 | Sickness absence, Swedish companies
| 2009 | 2008 | |||
|---|---|---|---|---|
| AGE CATEGORY | Total absence |
Of which more than 60 days |
Total absence |
Of which more than 60 days |
| Under 30 | 2,35% | 0,00% | 1,13% | 0,00% |
| 30 - 50 | 3,14% | 37,61% | 2,66% | 34,08% |
| Above 50 | *) | *) | *) | *) |
| Women | 6,36% | 51,83% | 6,43% | 47,58% |
| Men | 1,30% | 0,00% | 1,12% | 0,00% |
| Total | 2,79% | 34,80% | 2,37% | 30,39% |
* Not reported due to an exemption in the legislation according to which disclosures may not be made, if the number of employees in a group is less than
10 or if the information is attributable to a single individual. Group refers to both gender and age category.
Note 9 | Salaries and remunerations
| Group | Parent company | |||
|---|---|---|---|---|
| 2009 | 2008 | 2009 | 2008 | |
| Salaries | ||||
| Board of Directors and CEO | 3 991 | 4 655 | 1 602 | 4 355 |
| Other senior executives 1) | 6 119 | 5 899 | - | 2 767 |
| Other employees Sweden | 41 001 | 51 531 | - | 5 388 |
| Other employees USA | 6 438 | 5 065 | - | - |
| Other employees Japan | 7 055 | 5 255 | - | - |
| 64 604 | 72 405 | 1 602 | 12 510 | |
| socia l security |
||||
| Board of Directors and CEO | 1 567 | 1 412 | 471 | 1 412 |
| Other senior executives 1) | 2 234 | 1 912 | - | 897 |
| Other employees Sweden | 12 883 | 16 214 | - | 1 747 |
| Other employees USA | 1 139 | 848 | - | - |
| Other employees Japan | 745 | 247 | - | - |
| 18 568 | 20 633 | 471 | 4 056 | |
| pension expenses | ||||
| Board of Directors and CEO | 839 | 913 | - | 913 |
| Other senior executives 1) | 1285 | 1 530 | - | 636 |
| Other employees Sweden | 9 602 | 10 400 | - | 183 |
| Other employees USA | 306 | 251 | - | - |
| Other employees Japan | 326 | 243 | - | - |
| 12 358 | 13 337 | 0 | 1 732 | |
| Total salaries and remunerations | 95 530 | 106 375 | 2 073 | 18 298 |
| Whereof: Sweden |
79 521 | 94 466 | 2 073 | 18 298 |
| Japan | 7 883 | 6 164 | ||
| USA | 8 126 | 5 745 | ||
| Total | 95 530 | 106 375 | 2 073 | 18 298 |
| Salaries and other remunerations are included in the headlines of the comprehensive income statement as follows | ||||
| Selling expenses | 40 027 | 44 471 | 4 483 | |
| Administrative expenses | 10 795 | 12 020 | 2 073 | 11 034 |
| Development expenses | 44 708 | 49 784 | 2 781 | |
| Total | 95 530 | 106 375 | 2 073 | 18 298 |
1) The group has 6 (6) senior executives and the parent company has 0 (0) senior executives.
The CEO is subject to a mutual period of notice of six months. He retains his salary and benefits during the period of notice. If the CEO's employment is terminated by the company in a manner that lacks an objective basis pursuant to Section 7 of the Security of Employment Act (1982:80), he is entitled to severance pay equivalent to 12 times the monthly salary in effect on the termination date.
The period of notice for other senior executives varies from six to nine months if the company terminates their employment. No agreements have been entered into for pension commitments or the equivalent for either Board members or senior executives above and beyond that which is covered by notes. Apart from a salary during the period of notice, no senior executive other than the CEO receives financial compensation. The CEO's and senior management employment contracts includes a bonus based on terms adopted by the Board of Directors and limited to no more than 50 % of the fixed annual salary.
The retirement age for the CEO and other senior executives is 65. The pension premium is 35% of the pensionable salary for the CEO and 15-19% for other senior executives.
Guidelines for compensation to the Executives of the Company (Annual General meeting 2009)
The compensation level and structure shall be at market level. The total compensation shall be a balanced mix of fixed salaries, variable compensation, retirement and health plans, any other benefits and terms for dismissal and severance payments. The compensation may also comprise stock related long term incentive programs.
The variable compensation varies for the respective executive and shall primarily be related to Anoto´s result and operative goals and may at the most be fifty percent of the fixed salary. However, the variable compensation for the CEO may be at most 75 % of the fixed salary. The retirement plan shall be competitive. The CEO shall have a pension premium based retirement plan of 35 % of the fixed salary. The other executives shall have pension premium based retirement plans corresponding to the (Swedish) ITP plan. Other benefits, like health plans and company cars, shall be competitive.
Executives shall have a mutual notice period of six months. Under certain conditions, some executives may have and additional three months notice period in case Anoto gives notice. The CEO shall have a mutual notice period of six months and a severance payment of twelve months salary in case Anoto terminates the employment without juste cause.
Note 10 | Remunerations to Board of Directors and CEO
| Board of Directors | Salaries/Remu | Pension | Other | Options awarded | Value of | ||
|---|---|---|---|---|---|---|---|
| and CEO, 2009 |
nerations | Bonus | premiums | remunerations | Total | for the year | options |
| Anders Norling | 2 541 | - | 839 | 300 | 3 680 | - | - |
| Stein Revelsby | 175 | - | - | - | 175 | - | - |
| Leif Eriksrød | 175 | - | - | - | 175 | - | - |
| Charlotta Falvin | 175 | - | - | - | 175 | - | - |
| Håkan Ericsson | 175 | - | - | - | 175 | - | - |
| Hans Otterling | 450 | - | - | - | 450 | - | - |
| Total 1) | 3 691 | 0 | 839 | 300 | 4 830 | 0 | 0 |
1) Total compensation may originate som diffrent group companies.
| Board of Directors | Salaries/Remu | Pension | Other | Options awarded | Value of | ||
|---|---|---|---|---|---|---|---|
| and CEO, 2008 |
nerations | Bonus | premiums | remunerations | Total | for the year | options |
| Anders Norling | 2 855 | - | 913 | 300 | 4 068 | - | - |
| Christer Fåhraeus | 175 | - | - | - | 175 | - | - |
| Märtha Josefsson | 175 | - | - | - | 175 | - | - |
| Stein Revelsby | 175 | - | - | - | 175 | - | - |
| Håkan Ericsson | 175 | - | - | - | 175 | - | - |
| Bernard Gander | 175 | - | - | - | 175 | - | - |
| Yoshioka Hiroshi | 175 | - | - | - | 175 | - | - |
| Hans Otterling | 450 | - | - | - | 450 | - | - |
| Total 1) | 4 355 | 0 | 913 | 300 | 5 568 | 0 | 0 |
1) Total compensation may originate from diffrent group companies.
| Salaries/Remu | Pension | Other | Options awarded | ||||
|---|---|---|---|---|---|---|---|
| Manag ement 2009 |
nerations | Bonus | premiums | remunerations | Total | for the year | Value of options |
| Group Management | 6 119 | - | 1 285 | - | 7 404 | - | - |
| Total | 6 119 | 0 | 1 285 | 0 | 7 404 | 0 | 0 |
| Salaries/Remu | Pension | Other | Options awarded | ||||
|---|---|---|---|---|---|---|---|
| Management 2008 | nerations | Bonus | premiums | remunerations | Total | for the year | Value of options |
| Group Management | 5 899 | - | 1 530 | - | 7 429 | - | - |
| Total | 5 899 | 0 | 1 530 | 0 | 7 429 | 0 | 0 |
Note 11 | Audit fees
Fees are charged to earnings for the year by the company's auditors, KPMG; as follows;
| Group | Parent company | ||||
|---|---|---|---|---|---|
| 2009 | 2008 | 2009 | 2008 | ||
| Audit | 305 | 350 | 205 | 350 | |
| Tax advisory | 13 | - | 9 | - | |
| Other assignments | - | 252 | 10 | 252 | |
| Total | 318 | 602 | 224 | 602 |
An auditing assignment involves examining the annual accounts and accounting records, as well as the management of the company by the. Board of Directors and CEO, other tasks that the company's auditor is obligated to perform, and advisory services and other assistance occasioned by observations made during said examination or performance of said tasks.
Note 12 | Operating costs by type
| Group | Parent company | |||
|---|---|---|---|---|
| 2009 | 2008 | 2009 | 2008 | |
| Raw materials and supplies | -71 363 | -20 893 | - | - |
| Change in inventories | 7 973 | -31 369 | - | - |
| Personnel cost | -95 530 | -106 075 | - | - |
| Depreciation | -14 454 | -15 170 | - | - |
| Other external expenses | -57 923 | -43 038 | - | - |
| Other operating cost | - | -1 742 | - | - |
| Totalt | -231 297 | -218 287 | 0 | 0 |
Note 13 | Other operating income
| Group | Parent company | ||||
|---|---|---|---|---|---|
| 2009 | 2008 | 2009 | 2008 | ||
| Exchange gains | - | 3 625 | - | - | |
| Result from trading in Financial instruments ( derivates) | 4 542 | - | - | - | |
| Profit/loss on sale of fixed assets | 120 | - | 120 | - | |
| Other | 1 319 | 1 078 | - | 40 | |
| Total | 5 981 | 4 703 | 120 | 40 |
Note 14 | Other operating cost
| Group | Parent company | |||
|---|---|---|---|---|
| 2009 | 2008 | 2009 | 2008 | |
| Exchange losses | -1 394 | -1 742 | -7 361 | - |
| Total | -1 394 | -1 742 | -7 361 | 0 |
Note 15 | Depreciation and amortization
Depreciation of property, plant and equipment, and amortization of intangible fixed assets, are included in the individual items of the income statement as follows:
| Group | Parent company | |||
|---|---|---|---|---|
| 2009 | 2008 | 2009 | 2008 | |
| Amortization intangible fixed assets | ||||
| Selling expenses | -5 439 | -5 273 | - | - |
| Administrative expenses | - | - | -124 | -119 |
| Development expenses | -7 101 | -6 886 | - | |
| Total amortization intangible fixed assets | -12 540 | -12 159 | -124 | -119 |
| Depreciation tangible fixed assets | ||||
| Selling expenses | -638 | -1 004 | - | - |
| Administrative expenses | -443 | -697 | -116 | -116 |
| Development expenses | -833 | -1 311 | - | - |
| Total depreciation tangible fixed assets | -1 914 | -3 011 | -116 | -116 |
| Total | -14 454 | -15 170 | -240 | -235 |
Note 16 | Finance income and costs - Group
| Group | ||
|---|---|---|
| 2009 | 2008 | |
| Finance income | ||
| Interest on current investments | 394 | 1 079 |
| Interest on bank deposits | 510 | 1 318 |
| Other interest income | 529 | 398 |
| Total finance income | 1 433 | 2 795 |
| Finance cost | ||
| Interest expenses | -414 | - |
| Expenses from assets/liabilities at market value | - | -5 398 |
| Wriredown unlisted shares | -768 | -3 371 |
| Other finance expenses | -338 | - |
| Total finance cost | -1 520 | -8 769 |
| Total finance net | -87 | -5 974 |
Note 17 | Finance income and costs - Parent company
| Group | ||
|---|---|---|
| 2009 | 2008 | |
| Interest and similar income | ||
| Interest on current investments | - | 1 017 |
| Interest income on bank | 10 | 131 |
| Total interest and similar income | 10 | 1 148 |
| Interest and similar expenses | ||
| Result on currency forward contracts | - | -1 979 |
| Other finance expenses | -5 | -42 |
| Total interest and similar expenses | -5 | -2 021 |
| Total | 5 | -873 |
Note 18 | Taxes
| Group | Parent company | ||||
|---|---|---|---|---|---|
| 2009 | 2008 | 2009 | 2008 | ||
| Current tax 1) | 257 | -853 | - | - | |
| Total | 257 | -853 | 0 | 0 |
1) Primary foreign subsidiaries.
Correlation between tax expense for the year and reported profit/loss before tax
| Group | Parent company | |||
|---|---|---|---|---|
| 2009 | 2008 | 2009 | 2008 | |
| Reported profit/loss before tax | -20 935 | -60 050 | 1 167 | 945 |
| Tax in accordance with current tax rate of 26,3 %, ( 28%) | 5 506 | -16 814 | -307 | -265 |
| Tax impact of non-deductible expenses | ||||
| Intra-group adjustments that disregard | - | |||
| deferred tax | 1 326 | -1 559 | - | - |
| Other non-deductible expenses | -898 | -347 | -4 | -220 |
| Other adjustments | - | -932 | - | - |
| Tax impact from divested operations | - | -25 578 | ||
| Tax impact of non-taxable income | 4 | 12 992 | -3 | 8 |
| Adjustment for tax effects in foreign group companies | -1 518 | -1 737 | - | - |
| Increase/decrease of tax deficits without | ||||
| corresponding capitalization | -4 163 | -506 | 314 | 477 |
| Tax reported | 257 | -853 | 0 | 0 |
Tax deficit
| Group | Parent company | ||||
|---|---|---|---|---|---|
| 2009 | 2008 | 2009 | 2008 | ||
| Opening balance | -443 315 | -446 564 | -28 704 | -30 085 | |
| Tax deficit of the year | -15 920 | 2 532 | 1 168 | 1 703 | |
| Adjustment due to changed taxation | 1 476 | 717 | - | -322 | |
| Closing tax deficit | -457 759 | -443 315 | -27 536 | -28 704 | |
| Nominal amount, tax asset 26,3% (28%) | 120 391 | 124 128 | 7 242 | 8 037 |
There are no temporary differences
The nominal value of tax assets (26,3%) in accordance with the above have been reported at 0 in the balance sheet. Due to the fact that the group still reports a loss, the nominal value of tax assets is not reported in the balance sheet.
Tax deficits refers to the Swedish companies, and are not limited in time.
Further tax deficits in Anoto Maxell, Japan, amounts to approximately MSEK 12 .
Note 19 | Capitalized development expenditures
| Group | Parent company | ||||
|---|---|---|---|---|---|
| 2009 | 2008 | 2009 | 2008 | ||
| Acc umulated historica l costs |
|||||
| Opening accumulated historical costs | 139 390 | 119 256 | 24 218 | 24 218 | |
| Acquisitions for the year | 4 430 | 20 134 | - | - | |
| Closing accumulated historical costs | 143 820 | 139 390 | 24 218 | 24 218 | |
| Acc umulated amortizations acc ording to plan |
|||||
| Opening accumulated amortizations | -112 810 | -107 752 | -24 218 | -24 218 | |
| Amortisations for the year accoring to plan | -4 560 | -5 058 | - | - | |
| Closing amortizations according to plan | -117 370 | -112 810 | -24 218 | -24 218 | |
| Closing residual value | 26 450 | 26 580 | 0 | 0 |
Note 20 | Patents
| Group | Parent company | ||||
|---|---|---|---|---|---|
| 2009 | 2008 | 2009 | 2008 | ||
| Acc umulated historica l costs |
|||||
| Opening accumulated historical costs | 72 884 | 67 137 | 13 911 | 13 886 | |
| Acquisitions for the year | 4 082 | 5 901 | 19 | 25 | |
| Disposals for the year | -451 | - | - | - | |
| Sale of business | - | -154 | - | - | |
| Closing accumulated historical costs | 76 515 | 72 884 | 13 930 | 13 911 | |
| Acc umulated amortizations acc ording to plan |
|||||
| Opening accumulated amortizations | -44 018 | -38 199 | -13 236 | -13 122 | |
| Amortisations for the year accoring to plan | -6 509 | -5 838 | -117 | -114 | |
| Disposals for the year | 175 | - | - | - | |
| Sale of business | - | 19 | - | - | |
| Closing amortizations according to plan | -50 352 | -44 018 | -13 353 | -13 236 | |
| Closing residual value | 26 163 | 28 866 | 577 | 675 |
Note 21 | Brands
| Group | Parent company | |||
|---|---|---|---|---|
| 2009 | 2008 | 2009 | 2008 | |
| Acc umulated historica l costs |
||||
| Opening accumulated historical costs | 514 | 507 | 47 | 47 |
| Acquisitions for the year | 338 | 30 | 22 | - |
| Sale of business | - | -23 | - | - |
| Closing accumulated historical costs | 852 | 514 | 69 | 47 |
| Acc umulated amortiZa tions acc ording to plan |
||||
| Opening accumulated amortizations | -180 | -150 | -11 | -7 |
| Amortizations for the year accoring to plan | -65 | -34 | -7 | -4 |
| Sale of business | - | 4 | - | - |
| Closing amortizations according to plan | -245 | -180 | -18 | -11 |
| Closing residual value | 607 | 334 | 51 | 36 |
Note 22 | Other intangible assets
| Group | Parent company | ||||
|---|---|---|---|---|---|
| 2009 | 2008 | 2009 | 2008 | ||
| Acc umulated historica l costs |
|||||
| Opening accumulated historical costs | 6 439 | - | - | - | |
| Acquisitions for the year Recalssifications for the year |
- 3 822 |
6 439 | - | - | |
| Closing accumulated historical costs | 10 261 | 6 439 | 0 | 0 | |
| Acc umulated amortizations acc ording to plan |
|||||
| Opening accumulated amortizations | -690 | - | - | - | |
| Amortizations for the year accoring to plan | -1 406 | -690 | - | - | |
| Closing amortizations according to plan | -2 096 | -690 | 0 | 0 | |
| Closing residual value | 8 165 | 5 749 | 0 | 0 |
Note 23 | Goodwill
| Group | ||
|---|---|---|
| 2009 | 2008 | |
| Acc umulated historica l costs |
||
| Opening accumulated historical costs | 302 496 | 298 674 |
| Acquisitions for the year | - | 3 822 |
| Reclassifications for the year | -3 822 | - |
| Closing accumulated historical costs | 298 674 | 302 496 |
Anoto technology and products are sold by all sales companies within the group, i.e. the group have only one branch of business. The focus of management reporting is the level of sales within the different application areas. These application areas are not independent cash generating units and the impairment testing of intangible assets is performed based on cash flow projections from group totals.
Impairment testing of goodwill is performed annually or when an indication of decline in value occours. The recoverable value for group business is defined based on calculations of value in use.
The value in use for goodwill attributable to Anoto is based on discounted cash flows for a period of 10 years.
The calculations does not include cash flow beyond the first ten years. Cash flows for the first year are based on the budget adopted by the Board of Directors. For the years 2-3 the cash flow is based on the strategic plan of the group which is based on information from partners as along with own assessments varying per application area and over time. Price reductions of 0-15% have been assumed.
Sensitivity analyzis implies that an average growth below 12% per annum will lead to a useful value which is below the accumulated historical cost.The calculation of the value in use for Anoto a discount rate of 12 -15% after tax has been applied along with different growth scenarios beginning with the fourth year. The discount rate of interest is based on the company's weighted average cost of capital (WACC).
Note 24 | Equipment and tools
| Group | Parent company | |||
|---|---|---|---|---|
| 2009 | 2008 | 2009 | 2008 | |
| Acc umulated historica l costs |
||||
| Opening accumulated historical costs | 20 371 | 15 755 | 1 049 | 940 |
| Acquisitions for the year | 6 040 | 5 459 | - | 109 |
| Sale of business | - | -1 775 | - | - |
| Adjustment to opening balance | -110 | - | - | - |
| Disposals for the year | -437 | -80 | -300 | - |
| Translation difference | -332 | 1 012 | - | - |
| Closing accumulated historical costs | 25 532 | 20 371 | 749 | 1 049 |
| Acc umulated deprecia tions acc ording to plan |
||||
| Opening accumulated depreciations | -15 092 | -11 709 | -693 | -574 |
| Depreciations for the year accoring to plan | -1 914 | -3 550 | -113 | -119 |
| Sale of business | - | 119 | - | - |
| Adjustment to opening balance | 110 | - | - | - |
| Disposals for the year | 296 | 48 | 170 | - |
| Translation difference | 252 | - | - | - |
| Closing depreciations according to plan | -16 348 | -15 092 | -636 | -693 |
| Closing residual value | 9 184 | 5 279 | 113 | 356 |
Note 25 | Participation in group companies
| Parent company | ||
|---|---|---|
| 2009 | 2008 | |
| Opening balance | 267 194 | 267 194 |
| Opening shareholders contribution | 464 603 | 464 603 |
| Opening accumulated impairment losses | -464 603 | -464 603 |
| Total | 267 194 | 267 194 |
| Total no. of | % of capital | Shareholders | Carrying | |||
|---|---|---|---|---|---|---|
| Company | Reg.nr. | Domicile | participation | and votes | equity | amount |
| Anoto AB | 556320-2646 | Lund | 5 000 | 89,0% 1) | 43 238 | 267 005 |
| Anoto Licensiering AB | 556665-4306 | Lund | 1 000 | 89,0% 1) | 97 | 89 |
| Anoto Administration AB | 556591-2481 | Malmö | 1 000 | 100,0% | 2 302 | 100 |
| 267 194 |
The Anoto Group contains sub-groups consisting of the following companies:
Anoto, Inc., USA
Anoto Maxell K.K, Japan
FAB Licensiering AB, Sweden
Anoto IP Lic HB, Sweden
C Technologies AB , Sweden
1) The remaining 11% are held by Anoto Administration AB
Note 26 | Participation in associated companies
| Group | ||
|---|---|---|
| 2009 | 2008 | |
| Opening balance | 1 640 | 4 071 |
| Share of profits in associated company | - | -2 431 |
| Reclassification 1) | -1 640 | - |
| Total | 0 | 1 640 |
1) Due to a new share issue Anoto AB's share in Anoto Taiwan has been diluted during 2009 and Anoto Taiwan is no longer an associated company
Note 27 | Other long term investments
| Group | |||
|---|---|---|---|
| 2009 | 2008 | ||
| Opening balance 1) | - | 3 371 | |
| Reclassification 1) | 1 640 | - | |
| Writedown 2) | -768 | -3 371 | |
| Total | 872 | 0 |
1) Reclassification of shares in Anoto Taiwan.
2) Writedown of shares in Anoto Taiwan ( Destiny Wireless, 2008).
Other long term investments are classified in the category Unlisted shares.
Note 28 | Other long term receivables
| Group | ||
|---|---|---|
| 2009 | 2008 | |
| Opening balance | 28 959 | 1 118 |
| Additions | 1 021 | 1 118 |
| Reclassification 1) | -8 071 | 19 381 |
| Payments 2) | -19 800 | - |
| Revaluation reserve | -146 | - |
| Total | 1 963 | 28 959 |
1) Reclassification of receivable on ARM Ltd. into current receivable.
2) Receivable from Livescribe has been paid during the year.
Note 29 | Ageing accounts receivable
| 2009 | 2008 | ||||
|---|---|---|---|---|---|
| Gross | Net | Gross | Net | ||
| Not due | 33 340 | 33 340 | 15 463 | 15 463 | |
| Due 1 - 30 days | 10 736 | 10 736 | 10 154 | 10 154 | |
| Due 31 - 60 days | 807 | 715 | 1 537 | 1 537 | |
| Due 61 - 90 days | 1 020 | - | 1 893 | 1 893 | |
| Due more than 90 days | 4 291 | 222 | 5 412 | 3 517 | |
| Total | 50 194 | 45 013 | 34 459 | 32 564 |
Assessment of the need of provisions of Accounts receivable due more than 90 days, are made on an individual basis. No individual customer represents more than 10% of outstanding Accounts receivable
Note 30 | Prepaid expenses and accrued income
| Group | Parent company | ||||
|---|---|---|---|---|---|
| 2009 | 2008 | 2009 | 2008 | ||
| Prepaid rent | 1 072 | 1 370 | - | 1 370 | |
| Prepaid leasing fees | 835 | 236 | - | 152 | |
| Prepaid insurance | 163 | - | - | - | |
| Accrued interest income | - | 12 | - | - | |
| Accrued income | 1 759 | 10 741 | - | - | |
| Other | 2 599 | 3 168 | 103 | 569 | |
| Total | 6 428 | 15 527 | 103 | 2 091 |
Note 31 | Provisions for product warranty commitments
| Group | Parent company | ||||
|---|---|---|---|---|---|
| 2009 | 2008 | 2009 | 2008 | ||
| Opening balance | 800 | 1 573 | - | - | |
| Amounts utilized | -77 | -21 | - | - | |
| New provisions | 668 | 748 | - | - | |
| Unutilized reversed amounts | -685 | -1 500 | - | - | |
| Total | 706 | 800 | 0 | 0 |
Note 32 | Accrued expenses and deferred income
| Group | Parent company | |||
|---|---|---|---|---|
| 2009 | 2008 | 2009 | 2008 | |
| Holiday pay libility | 3 272 | 3 911 | - | 472 |
| Accrued social security | 2 635 | 1 342 | 241 | 239 |
| Accrued social security pensions | 2 526 | 2 363 | 186 | 511 |
| Accrued salaries and remunerations | 1 787 | 5 452 | 767 | 4 150 |
| Revaluation currency forward contracts | - | 3 892 | - | - |
| Deferred income | 4 155 | - | - | - |
| Other | 5 971 | 4 253 | 648 | 620 |
| Total | 20 346 | 21 213 | 1 842 | 5 992 |
Note 33 | Share-based payments to employees
As part of an incentiive programme, the parent company and some sudsibiaries have issued various kinds of options since 1998. The current programmes are as follows:
| Option programme | No. of options | Shares/ options | No. of options | Issue price SEK |
Subscription period until |
Fully excercised contributes MSEK |
|---|---|---|---|---|---|---|
| Program 1 | 585 000 | 1 | 585 000 | 18,00 | 10-03-31 | 10,5 |
| Of which senior executives | 160 000 | 160 000 |
The annual meeting , May 15, 2007 decided to issue 500.000 employee stock options and 500.000 warrants. The employee stock options were hedged by issuing of 650.000 warrants, which also included the payroll overhead. At the end of the year 440.000 had been reserved to employees and 145.000 had been reserved to a subsidiary to hedge against payroll overhead. The options which are tied to employment may be exercised from 1 September to 31 March 2010. Granting of options was based upon acheiving the budget targets for 2007 and 2008. The internal targets where not acheived and no granting of options have occured.
The fair value of each option issued is calculated in accordance with the Black-Scholes model.
Full excercise of all programmes would result in total dilution of about 0,5% as of 31 of December 2008. No programmes were deemed to have a value as of 31 December 2009. The dilution exposure and option programmes deemed to have no value may have changed until the date on which this annual report was distributed.
The actual cost for the personnel options is 0 kr. In accordance with IFRS a cost of 150 TSEK have been booked in the result for the year.
Change in outstanding option programmes during the year.
| 2009 | 2008 | |||||
|---|---|---|---|---|---|---|
| Weighted | ||||||
| No. of options | issue price | No. of options | issue price | |||
| Outstanding options at the beginning of the period | 585 000 | 18 | 3 515 500 | 24,41 | ||
| Expired during the period | - | - | -2 930 500 | 24,36 | ||
| Outstanding options at the end of the period | 585 000 | 18,00 | 585 000 | 18,00 | ||
| Redeemable at the end of the period | 0 | 0 |
*) No redemption has taken place during 2008 or 2009
Note 34 | Significant leasing expenses
The amounts associated with equipment at the company´s disposal through leases are negligable. The Group´s committment. for leased premesis totals to TSEK 7.011 for 2010 and TSEK 19.548 for 2011 – 2013..
Note 35 | Pledged assets
| Group | Parent company | |||
|---|---|---|---|---|
| 2009 | 2008 | 2009 | 2008 | |
| Blocked bank deposits | 12 591 | 8 542 | 0 0 |
Note 36 | Contingent liabiliites
| Group | Parent company | |||||
|---|---|---|---|---|---|---|
| 2009 | 2008 | 2009 | 2008 | |||
| Contingent liability for group companies | - | - | - | - | ||
| Contingent liability, others | 888 | 4 721 | - | - | ||
| Total | 888 | 4 721 | 0 | 0 |
Note 37 | Financial instruments
| Loans and accounts |
Investments held until |
Other assets | Total | |||
|---|---|---|---|---|---|---|
| receivable | maturity Held for trade1) | & liabilities | book value | Fair value | ||
| Group 2009 | ||||||
| Investments | - | 872 | 872 | 872 | ||
| Long term receivabels | 1 963 | - | 1 963 | 1 963 | ||
| Accounts receivable | 45 013 | - | 45 013 | 45 013 | ||
| Other receivabels | - | - | 504 | 504 | 504 | |
| Current investments and securities | - | |||||
| Liquid assets | - | |||||
| Assets | 46 976 | 0 | 504 | 872 | 48 352 | 48 352 |
| Other long term liabilities | - | - | 31 007 | 31 007 | 31 007 | |
| Accounts payable | - | - | 12 023 | 12 023 | 12 023 | |
| Other liabilities | - | - | 4 344 | 4 344 | 4 344 | |
| Unsettled loss on forward contracts | - | - | 0 | 0 | 0 | |
| Liabilities | 0 | 0 | 0 | 47 374 | 47 374 | 47 374 |
| Loans and | Investments | |||||
|---|---|---|---|---|---|---|
| accounts receivable |
held until | maturity Held for trade1) | Other assets & liabilities |
Total book value |
Fair value | |
| Group 2008 | ||||||
| Investments | - | - | - | - | - | |
| Long term receivabels | 28 959 | - | - | 28 959 | 28 959 | |
| Accounts receivable | 32 564 | - | - | 32 564 | 32 564 | |
| Other receivabels | - | - | - | - | ||
| Current investments and securities | - | 36 185 | - | 36 185 | 36 185 | |
| Liquid assets | - | - | - | - | - | |
| Assets | 61 523 | 36 185 | 0 | 97 708 | 97 708 | |
| Other long term liabilities | - | - | - | 41 891 | 41 891 | 41 891 |
| Accounts payable | - | - | - | 12 034 | 12 034 | 12 034 |
| Other liabilities | - | - | 3 892 | 23 979 | 27 871 | 27 871 |
| Unsettled loss on forward contracts | - | - | - | - | - | - |
| Liabilities | 0 | 0 | 3 892 | 77 904 | 81 796 | 81 796 |
1) Related to currency forward contracts only, valued at market price.
Anoto Group policy is to hedge the net flow of EURO, USD and JPY for six months at a time by means of forward contracts. Forward contracts are reported on the balance sheet closing date at fair value. Forward contracts totalled EUR 6.300 thousand and USD 1.000 thousand and JPY 200.000 thousand at the end of 2009.
Disclosure on fair value classification
| Group 2009 | ||
|---|---|---|
| Level 1 | Level 2 | Level 3 | Total | |
|---|---|---|---|---|
| Short term receivable derivatives | - | 504 | - | 504 |
Level 1: according to listed prices on an active market to similar instruments
Level 2: according to directly or indirectly observable market data not included in level 1
Level 3: according to indata not observable on the market.
Note 38 | Sale of business
GROUP
In December 2008 Anoto sold it´s shares in Logipard AB together with parts of Anoto´s activities within Imaging Technology to ARM Ltd.
| Profit from sale of business, added back in cash flow statement | |
|---|---|
| Selling price | 76 400 |
| Writedown of intangible assets in group accounts | -2 784 |
| Selling costs | -2 229 |
| 71 387 | |
| Net sales from divested operations | |
| Net sales | 38 229 |
| Cost of goods and services sold from divested business | -5 949 |
| Gross profit from divested operations | 32 280 |
| Research and development costs from divested operations | -12 315 |
| Result from divested operations | 19 965 |
| Total profit from divested operations | 91 352 |
| Cash Flow from sales of business | |
| Writedown of intangible assets in the Group | 2 784 |
| Liquid assets in Logipard at the time of sale | -200 |
| 2 584 | |
| Total added back in Statement of changes in cash flow | 93 936 |
*) 90% of selling price paid at signing of contract, remaining 10% to be paid during 2010.
Net assets in Logipard AB at time of sale:
| 2008-12-15 | |
|---|---|
| Intangible fixed assets | 1 922 |
| Equipment | 1 499 |
| Accounts receivable | 6 301 |
| Other receivables | 608 |
| Liquid assets | 200 |
| Advances from customers | -3 238 |
| Accounts payable | -1 070 |
| Other current liabilities | -2 741 |
| Net assets | 3 481 |
Note 39 | Related parties
Summary of related party transactions
GROUP
No related party transactions have taken place within the group.
| Parent company Related party |
Selling of goods | Purchasing of goods | Receivable on related party on |
Liability to related party on |
||
|---|---|---|---|---|---|---|
| and services | and services | Other | 31 December | 31 December | ||
| Group companies | 2009 | 9 126 | - | -17 280 | 154 731 | 0 |
| Group companies | 2008 | 30 044 | - | 41 366 | 162 885 | 0 |
For transactions with Board and Executives, see note 10.
Note 40 | Equity
| Revaluation reserve | ||
|---|---|---|
| 2009 | 2008 | |
| Accumulated exchange rate difference at beginning of the year | -152 | -3 063 |
| Exchange rated differences for the year | 34 | 2 911 |
| Accumulated exchange rate differences at year end | -118 | -152 |
Capital treatement
The Anoto group has since being founded in 1999 worked on developing a digital pen enabling digital transfer of data written with a digital pen to a computer or similar. Development costs have been significant and since 1999 approximately MSEK 1 600 have been invested as capital by the shareholders. The company ambition is to achieve profitable growth and in the future be able to pay dividend on invested capital. Anoto Group has sofar not paid any dividend and will suggest to the Annual general meeting of 2010 that no dividend shall be paid out. The company has no outspoken targets regarding dividend, debt/equity ratio or other capital ratios other than the strive for profitability and positive cash flow. When solid profitability has been achieved targets for dividend, debt/equity ratio etc. will be determined.
Note 41 | Events after 31 December, 2009
No material events or issues after the closing of 2009 are to be reported.
Lund, 25 March 2010
Stein Revelsby Hans Otterling Håkan Eriksson Chairman
Leif Eriksrød Charlotta Falvin Anders Norling
CEO
Our auditor's report was submitted on 25 March 2010 KPMG AB
Eva Melzig Henriksson Authorized Public Accountant
Audit Report
To the annual meeting of the shareholders of Anoto Group AB (publ) Corporate identity number 556532-3929
We have audited the annual accounts, the consolidated accounts, the accounting records and the administration of the board of directors and the managing director of Anoto Group AB (publ) for the year 2009. The annual accounts and the consolidated accounts of the company are inlcuded in the printed version of this document on pages 22-54. The board of directors and the managing director are responsible for these accounts and the administration of the company as well as for the application of the Annual Accounts Act when preparing the annual accounts and the application of international financial reporting standards IFRSs as adopted by the EU and the Annual Accounts Act when preparing the consolidated accounts. Our responsibility is to express an opinion on the annual accounts, the consolidated accounts and the administration based on our audit.
We conducted our audit in accordance with generally accepted auditing standards in Sweden. Those standards require that we plan and perform the audit to obtain reasonable assurance that the annual accounts and the consolidated accounts are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the accounts. An audit also includes assessing the accounting principles used and their application by the board of directors and the managing director and significant estimates made by the directors and the managing director when preparing the annual accounts and the consolidated accounts as well as evaluating the overall presentation of information in the annual accounts and the consolidated accounts. As a basis for our opinion concerning discharge from liability, we examined signi¬ficant decisions, actions taken and circumstances of the company in order to be able to determine the liability, if any, to the company of any board member or the
managing director. We also examined whether any member or the managing director has, in any other way, acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association. We believe that our audit provides a reasonable basis for our opinion set out below.
The annual accounts have been prepared in accordance with the Annual Accounts Act and give a true and fair view of the company's financial position and results of operations in accordance with generally accepted accounting principles in Sweden. The consolidated accounts have been prepared in accordance with international financial reporting standards IFRSs as adopted by the EU and the Annual Accounts Act and give a true and fair view of the group's financial position and results of operations. The statutory administration report is consistent with the other parts of the annual accounts and the consolidated accounts.
We recommend to the annual meeting of shareholders that the income statement and balance sheet of the parent company and the statement of comprehensive income and statement of financial position of the group be adopted, that the loss of the parent company be dealt with in accordance with the proposal in the statutory administration report and that the members of the board directors and the managing director be discharged from liability for the financial year.
Malmö March 25, 2010
KPMG AB
Eva Melzig Henriksson Authorized Public Accountant
Corporate governance report 2009
Anoto Group AB (publ.) is governed by its Articles of Association and the Swedish Companies Act. Since Anoto is listed on NASDAQ OMX Stockholm, Anoto also applies NASDAQ OMX Stockholm's Rule Book for Issuers.
Since July 1, 2008, Anoto applies the Swedish Code of Corporate Governance ("the Code") which requires that a Corporate Governance Report be prepared. The report has not been reviewed by the Company's auditor and does not constitute a part of the formal annual report.
Corporate governance structure
Anoto is governed and controlled by several bodies.
The shareholders exercise their voting rights at General Meetings of the Shareholders by electing the Board of Directors and external auditors and making decisions on other issues like the adoption of the annual report and stipulating how to appoint the Nomination Committee.
The Nomination Committee nominates candidates to the Board of Directors, Chairman of the Board and external auditors. A Nomination Committee is required by the Code, but not the Companies Act.
The Board is responsible for the appointment of the CEO, the developing of long-term strategy, and controlling and evaluating Anoto's day-to-day operations. Some duties of the Board are partly exercised by the Compensation Committee and the Audit Committee.
The CEO is in charge of and responsible for the daily operations and the management of Anoto in accordance with instructions and guidelines from the Board of Directors.
External auditors appointed by the shareholders at the Annual General Meeting examine the Company's annual report and accounts as well as the management by the Board of Directors and the CEO.
Meetings with shareholders
The Annual General Meeting is the corporate body where the shareholders in Anoto can exercise their rights by electing the Board of Directors and deciding on all other issues voted on at Annual General Meetings in accordance with the Companies Act and the Articles of Association.
The Annual General Meeting is held in Lund, normally in the
first half of May. The notice of the Annual General Meeting, together with the agenda, is published on Anoto's website and in the Swedish newspaper Dagens Nyheter, and Post och Inrikes Tidningar (the Swedish Official Gazette). As a courtesy, the date and place for the Annual General Meeting together with information on how to obtain the agenda is published in the Swedish newspaper Sydsvenska Dagbladet.
All information material for the Annual General Meeting is available in both Swedish and English. The Annual General Meeting is held in Swedish. To date, the composition of shareholders in Anoto has not given reasons to translate the Annual General Meeting into English.
Annual General Meeting 2009
The Annual General Meeting (AGM) in 2009 took place in Lund on May 14, 2009. Hans Otterling, Christer Fåhraeus and Stein Revelsby were present from the Board of Directors. Present were also Anoto's external auditors and the Chairman of the Nomination Committee.
The Annual General Meeting made the following decisions:
- The annual report was presented, and the consolidated income statements and balance sheets were adopted. The Board Members and CEO were discharged from liability. No dividends were to be paid.
- In accordance with the proposal of the Nomination Committee, Board Members Hans Otterling, Stein Revelsby and Håkan Eriksson were re-elected Board Members, and at the same time Leif Eriksrød and Charlotta Falvin were elected new Members of the Board until the end of the next Annual General Meeting. Christer Fåhraeus, Märtha Josefsson, Hiroshi Yoshioka and Bernard Gander had all declined re-election. Hans Otterling was re-elected Chairman of the Board.
- The proposal of the Nomination Committee on how to appoint members of the Nomination Committee, as well as the assignment for the Nomination Committee, was approved.
- The Board of Directors was authorized to, on one or several occasions prior to the next Annual General Meeting, resolve on an issue of a maximum of 12,000,000 new shares with provisions for non-cash payment or payment against set-off of claims or else on conditions enabling the waiving of preferential rights of shareholders.
- The guidelines for compensation to the CEO and other executives of the Company were adopted in accordance with the proposal of the Board of Directors.
Anoto's Annual General Meeting 2010
Anoto's Annual General Meeting 2010 will take place on May 5, 2010 in Lund.
Nomination Committee
The Annual General Meeting 2009 resolved, in accordance with the proposal presented by the Nomination Committee, that the Chairman of the Board of Directors be assigned to contact three of the Company's major shareholders, according to the list of shareholders at the end of September 2009, and ask them to
C o r p o r at e g o v e r n a n c e r e p o rt
appoint one representative each no later than six months prior to the Annual General Meeting 2010 to, together with him, form the Nomination Committee until a new Nomination Committee has been appointed. The Nomination Committee shall appoint a Chairman. The Chairman of the Board shall not be the Chairman of the Nomination Committee. The majority of the Nomination Committee members shall not be Board Members of Anoto.
The Nomination Committee formed for the Annual General Meeting 2010 was announced on November 6, 2009, as folllows: Leif Eriksrød representing EssensorAS (Chairman of the Nomination Committee), André Lövestam representing Norden Technology AS, Paddy Padmanbhan representing DoubleDay Holdings, and Hans Otterling, Chairman of the Board. The Company's three major shareholders have declared that the background for appointing Leif Eriksrød Chairman of the Nomination Committee to be that he is very well suited to effectively run the Nomination Committee work in order to achieve the best result for the Company shareholders.
The Nomination Committee shall prepare and present to the Annual General Meeting 2010 proposals for the following issues:
-
- Chairman at the Annual General Meeting
-
- Chairman and other Members of the Board
-
- Fees to the Board of Directors
-
- Fees to the Auditors
-
- The Nomination Committee in respect of the Annual General Meeting 2011
The Nomination Committee proposal for Board Members shall be presented in the notice for the Annual General Meeting 2010 as well as on the company's website.
The Board of Directors
The Board of Directors, which also appoints the CEO, is ultimately responsible for the organization of Anoto and the management of its operations. According to Anoto's Articles of Association, the Board shall consist of not less than three and not more than eight directors with not more than five deputies. For information about the Board Members and their remuneration, please refer to page 41 in the Annual Report. All Board Members are independent of Anoto's management. They are also independent of Anoto. All Board Members except Leif Eriksrød are independent of the larger shareholders in Anoto.
Rules of Procedures
The Board of Directors has adopted Rules of Procedures that outlines the work procedures and tasks for the Board, the Audit Committee and the Nomination Committee. However, the Rules of Procedure do not in any way change or alter the responsibility of the Board or individual Board Member according to applicable laws and NASDAQ OMX Stockholm's Rule Book for Issuers. The Rules of Procedures are reviewed and adopted at least once a year.
Work of the Board of Directors in 2009
The Board of Directors consists of five members elected by the Annual General Meeting on May 14, 2009. Hans Otterling has
served as Chairman of the Board. The CEO and CFO take part in board meetings. The Company General Counsel is the secretary of the Board. When appropriate, other employees of the company participate in reporting capacities concerning their particular areas of expertise.
The Board continuously evaluates the performance of Anoto, the CEO and Anoto's Management.
Eleven of the fifteen meetings in 2009 were part of the Board's annual schedule. In addition to the Board's ongoing effort to issue directives and monitor the company's activities – including the budget, state of the market and strategic direction – the main issues discussed at the meetings were as follows:
- February: Review of quarterly and annual accounts with the Company's auditor
- May: Review of quarterly accounts and meeting of the Board members following election at the Annual General Meeting
- June: The strategy for Anoto
- August: Review of quarterly accounts and discussion of Company's direction
- November: Review of quarterly accounts and discussion of Company's direction
- December: Adoption of 2010 budget
Documentation is normally distributed approximately one week prior to a meeting. The CEO submits a monthly written report to the Board. The Board has two Committees – an Audit Committee and a Compensation Committee – that prepare items for the Board to take up and in certain cases reach decisions delegated to them by the Board.
The Board Members attendance at Board Meetings and Committee Meetings is set forth below as follows:
| Board Member: |
Number N of Board Meetings: |
umber of Audit Committee Meetings: |
|---|---|---|
| Hans Otterling | 15/15 | 1/1 |
| Christer Fåhraeus* | 6/6 | 1/1 |
| Märtha Josefsson* | 6/6 | 1/1 |
| Stein Revelsby | 14/15 | 1/2 |
| Bernard Gander* | 3/6 | |
| Håkan Eriksson | 8/15 | 0/1 |
| Hiroshi Yoshioka* | 2/6 | |
| Leif Eriksrød** | 9/9 | 1/1 |
| Charlotta Falvin** | 8/9 | 0/1 |
*) Board Member upto the AGM 2009
**) Board Member elected at the AGM 2009
Audit Comm ittee
The Audit Committee, since the AGM 2009 consisting of the entire Board with Leif Eriksrød as Chairman, deals with audits, their focus and their scheduling. The Committee also receives reports from Anoto's auditor. The Committee held two meetings in 2009.
At the meetings, the auditor presented the schedule for the annual audit, discussed risk assessments and reported on reviews that had been completed.
Meetings held by the Committee are reported to the Board by the Chairman of the Audit Committee at the Board Meeting following the Committee meeting.
Compensation Committee
The Compensation Committee, consisting of the entire Board with Stein Revelsby as Chairman, handles remuneration for the CEO and management, as well as incentive programs. The Committee held one meeting in 2009. The work of the Compensation Committee has been performed on an ongoing basis along with the work of the Board.
The 2009 Annual General Meeting adopted guidelines for compensation to senior executives.
CEO and Management
The Management Team consist of six persons, see Annual Report page 60, with the CEO in charge. The CEO and Management Team manage and control Anoto's daily operations.
Internal control
The Board of Directors is responsible for the internal control under the Swedish Companies Act and the Swedish Code of Corporate Governance. This section on internal control is focused on the internal control of the financial reporting. Given the size of Anoto, the Board has determined that there is no need for an internal audit department or function, and that Anoto's finance department sufficiently can carry out the internal control in cooperation with the external auditors.
Control Environment
The corporate culture of Anoto encourages initiatives while assuming responsibility for meeting the defined strategic objectives of Anoto. The culture is based on trust, confidence and personal responsibility. Each employee at Anoto has a job description setting out tasks, responsibilities and authorizations.
Anoto has an "open door policy" and all employees can discuss any issue, concern or matter directly with the CEO or a member of the Management Team.
The CEO has adopted guidelines and policies for specific areas that the employees are required to follow.
Anoto has implemented a Code of Conduct that is applicable to Anoto and its suppliers. The Code of Conduct describes Anoto's requirements with respect to ethical behavior, child labor and the environment.
A detailed delegation plan has been drawn up with welldefined levels of attestation and decision levels. This is applied throughout Anoto.
Risk Assessment
Risk assessments are performed in order to identify, map and measure the root causes for risks. The most important risk factors for the internal control of the financial reporting are identified at Group and Company level, as well as at a regional level. The risk assessments also include the risk for inappropriate actions and
fraud. The outcome of the risk assessments result in actions and tasks that support the internal control of the financial reporting.
Control Activites
The Board has implemented a system for control and risk management based on the Board's Rules of Procedure - that also include instructions for the CEO and reports that are to be made to the Board - and the Finance Policy. These rules constitute the framework for the internal control.
Anoto's processes and systems for ensuring effective internal controls are designed with the intention of managing and limiting the risks of material errors in the reporting of financial data, thus ensuring that both strategic and operational decisions are based on accurate financial information.
The operational work of controlling the day-to-day activities is carried out by the CEO and the Management Team. An authorization manual governs the requirements for authorizations to decision-making. In addition, there are several operational meeting forums like management meetings and steering committees that address specific control issues in the operational activities and effectively steer Anoto towards the defined strategic objectives.
Monitoring
There are general as well as detailed control activities, aimed at preventing, discovering and correcting faults and deviations. The control organization is evaluated by the CFO on an ongoing basis with the aim of ensuring quality and efficiency. The CFO actively participates in the recruitment process of all qualified controllers.
The CEO and the CFO continuously keep the Board informed of the Group's financial position, performance and any areas of risk. Anoto's external auditors attend at least two Board meetings per year, at which the auditors provide their assessment and observations on the business processes, accounts and reports. The Chairman of the Board and the Chairman of the Audit Committee are also in regular contact with the auditors.
The Board continuously monitors Anoto's financial performance by comprehensive reports, as well as information from the CFO at all Board Meetings. Regular follow-up, together with a high level of transparency of the reporting material and financial processes ensures compliance with the Company's Finance Policy, thus identifying any deficiencies in the internal control system.
A monthly management report is prepared for each application and geographic area, and is subject to follow up with line management. The internal control also includes detailed annual budgets split on application areas, geographic areas and costcenters. Forecasts are delivered three times a year, May, August and November. The forecasting follows the same organizational set-up as the annual budget. In December, the Board adopts the budget for the following year.
In addition to the budgeting and forecasting, Anoto's Management Team continuously works with overall three-year strategic scenarios.
b o a r d o f d i r e c to r s
Hans Otterling
Chairman of the Board Independent Born 1961 Board member since 2006
Other positions: Board member of EpiServer AB, Climatewell AB, Tobii Technology AB and the Swedish Private Equity & Venture Capital Association.
Shareholding: 100 000 shares in Anoto Group Education: Master of Business Administration, University of Massachusetts, School of Management, Amherst, MA, USA and Stockholm School of Economics,
Håkan Eriksson Member of the Board Independent Born 1961 Board member since 2006 Other Positions: Board member Vestas AS. Shareholding: 0 shares in Anoto Group AB Education: Master of Science, Electrical Engineering, Linköping University. Honorary PhD, Linköping University.
Stein O. Revelsby
Member of the Board Independent Born 1962 Board member since 2005
Other Positions: Chairman & CEO of Norden Technology AS. Norden Technology AS owns 9.5 million shares in Anoto Group AB. Board member GammaMedica-Ideas Inc., Industrial Advisor to Capman plc.
Shareholding: 900 000 shares in Anoto Group AB
Education: MBE, Norwegian School of Management.
Charlotta Falvin Member of the Board Independent Born 1966 Board member since 2009 Other positions: Board member of Axis AB Shareholding: 0 shares in Anoto Group AB Education: Master of Science in Business and Economics, Lund University
Leif Eriksrød Member of the Board Not considered independent in relation to larger shareholders Born 1970 Board member since 2009 Other positions: CEO of Essensor AS. Essensor AS owns 15.5 million shares in Anoto Group AB Shareholding: 109 000 shares in Anoto Group AB Education: Master of Science in Business and Economics, Norwegian School of Management.
g r o u p ma n a g e m e n t
ANDERS NORLING CEO, Anoto Group AB Born 1951 Employed since 2006 Shareholding: 250 000 shares in Anoto Group AB. Education: Master of Science in Industrial Engineering, Linköping University.
ANDERS WIDESJÖ CFO, Anoto Group AB Born 1951 Employed since 2008 Shareholding: 30 000 shares in Anoto Group AB. Education: MBA, Gothenburg University.
LARS HERMANSEN EVP Sales & Marketing, Anoto Group AB Born 1958 Employed since 2006 Shareholding: 50 000 employee stock options in Anoto Group AB. Education: Master of Economics, Stockholm University.
EBBA ÅSLY FÅHRAEUS VP Sales & Marketing, Anoto Group AB Born 1963 Employed since 2000 Shareholding: 50 000 employee stock options and 35 900 shares in Anoto Group AB. Education: Master of Science in Business and Economics, Stockholm School of Economics.
MAGNUS HOLLSTRÖM EVP Technology Licensing, Anoto Group AB Born 1969 Employed since 2001 Shareholding: 10 000 employee stock options and 57 833 shares in Anoto Group. Education: Master of Science in Electrical Engineering, Lund University of Technology.
TORGNY HELLSTRÖM Senior Vice President & General Counsel, Anoto Group AB Born 1958 Employed since 2004 Shareholding: 50 000 employee stock options and 20 000 shares in Anoto Group AB. Education: LL.M., Stockholm University.
Anoto's Annual General Meeting will be held on May 5, 2010 at the Anoto premises Traktorvägen 11 in Lund
Anoto's Annual General Meeting will be held on May 5, 2010 at 4 p.m. at the Anoto premises, Traktorvägen 11 in Lund, Sweden. Any shareholder wishing to participate in the meeting must notify the company in one of the following ways:
- * Phone: +46 46 540 1200, Fax: +46 46 540 1202
- * E-mail to [email protected]
- * In writing to Anoto Group AB, Box 4106, SE-227 22 Lund, Sweden
The notification must reach the company by 12:00 noon on Wednesday, April 28, 2010. To be entitled to participate, the shareholder must also be entered in the Euroclear Sweden AB share register by April 28, 2010. Any shareholder who has registered his or her shares under a trustee must temporarily register them in his or her own name with Euroclear Sweden AB by Wednesday, April 28, 2010. When submitting the notification, please state your name, personal identity or corporate identity number, address, phone number and number of registered shares. If you are participating by proxy, you must submit the authorisation to the company prior to the meeting.
Financial reporting
Anoto Group's financial reports are released in Swedish and English. The easiest way to obtain the reports is by downloading them from www.anoto.com or e-mailing a request to [email protected] or phoning +46 46 540 1200.
Following is the schedule of Anoto Group's financial reports for its 2010 financial year.
| January-March interim report | May 5, 2010 |
|---|---|
| January-June interim report | August 3, 2010 |
| January-september interim report | November 9, 2010 |
| 2010 year-end report | February 4, 2010 |
Anoto Group was founded in 1999 and has created the first commercial system for digital pen and paper. Today, Anoto is world leading in digital pen and paper technology, a technology that enables fast and reliable transmission of handwritten text and illustrations into digital format, not only from paper but also from surfaces such as whiteboards, glass and LCD screens.
Anoto operates through a global partner network that focuses on user-friendly forms solutions for efficient capture, transmission and storage of data within different business areas, such as Healthcare, Banking & Finance, Transport & Logistics, Facility Management and Education. Anoto has more than 300 partners across all continents and in more than 50 countries.
Protecting innovation is central to Anoto and the company currently has more than 300 patents and 260 patent applications.
The Anoto Group has around 110 employees and its headquarter is situated in Lund, Sweden. The company also has offices in Boston och Tokyo. www.anoto.com
Anoto Group AB Traktorvägen 11 SE-227 22 LUND Sweden Phone +46 46 540 1200 Fax +46 46 540 1202
Anoto Inc. 200 Friberg Parkway, Suite 3003 Westborough, MA 01581 United States Phone +1-508-983-9550 Fax +1-508-983-9551
Anoto-Maxell K.K.
7F Dai-3 Nishi Aoyama Bldg. 1-8-1 Shibuya, Shibuya-ku Tokyo Japan 150-0002 Phone +81 (0)3-5774-1212 Fax +81 (0)3-5774-1211
C Technologies AB
Traktorvägen 11 SE-226 60 LUND Sweden Phone +46 46 540 1200 Fax +46 46 540 1202