hansab group 2010 annual report

Hansab Group 2010 Annual Report

Copyright © Hansab Group 2010

1. Letter to the Stakeholders By: Aigar Urva, Founder and CEO 5

2. What is Hansab Group? 8 3. Service: Focus on Excellence By: Algo Puusepp, Service Support Manager 13

4. Business Development By: Nerijus Žikas, Business Development Manager 21

5. Financial Results By: Kari Pavelson, Financial and Quality Manager 25

6. Hansab Estonia in 2009 By: Janno Kallikorm, Managing Director of Hansab AS 33

7. Hansab Latvia in 2009 By: Ingemars Liakoviãus, Managing Director of Hansab SIA 39

8. Hansab Lithuania in 2009 By: Darius Îekonis, Managing Director of Hansab UAB 43

9. Ellore Activity By: Alar Alumaa, Managing Director of Ellore OÜ 47

10. BOS By: Andres Johannson, Managing Director of BOS OÜ 51

11. Contacts 52

Contents

Page Number 2

Nerijus Îikas, Business Development Manager

Annika Urva Ronk, Personnel Manager

Hansab Group Management Members

Aigar Urva,Aigar Urva, Founder and CEOFounder and CEO Algo Puusepp,Algo Puusepp, Service Support ManagerService Support Manager

Hansab Group Management Members:

Ingemars Liakoviãius,Ingemars Liakoviãius, Managing Director of Hansab SIAManaging Director of Hansab SIA Darius Îekonis,Darius Îekonis, Managing Director of Hansab UABManaging Director of Hansab UAB Alar Alumaa,Alar Alumaa, Managing Director of Ellore OÜ

Sigita Babarskaite,Sigita Babarskaite, Marketing Communications ManagerMarketing Communications Manager Margus Tammoja,Margus Tammoja, Product Development ManagerProduct Development Manager

Page Number 3 Hansab Group Management Members

Nerijus Îikas,Nerijus Îikas, Business Development ManagerBusiness Development Manager Kari Pavelson,Kari Pavelson, Financial and Quality ManagerFinancial and Quality Manager Janno Kallikorm,Janno Kallikorm, Managing Director of Hansab ASManaging Director of Hansab AS

Andres Johannson,Andres Johannson, Managing Director of BOS OÜManaging Director of BOS OÜ Ruta Urva,Ruta Urva, Internal Control ManagerInternal Control Manager

Annika Urva Ronk,Annika Urva Ronk, Personnel ManagerPersonnel Manager Pranas Aleksinas,Pranas Aleksinas, Managing Director Hansab TOVManaging Director Hansab TOV

Alar Alumaa,, Managing Director of Ellore OÜManaging Director of Ellore OÜ

Aigar Urva,Aigar Urva, Founder and CEOFounder and CEO

Page Number 5 Letter to the Stakeholders

Letter to theStakeholdersSuccessfully Through the Challenges

The economies in the Baltic countries faced a dramatic drop in 2009. As the activities of the Hansab Group companies is in the internal market, this complicated situation seriously affected our results. Overall, the Group’s turnover declined by 36%. After a short period of time we succeeded in reacting fl exibly to this situation and managed to decrease our costs by 28%. It helped us to fi nish a challenging 2009 with a positive EBIDTA.

This challenging year confi rmed once again just how correct is our strategy. We are constantly making great efforts towards developing Hansab as the very best service company in our market. Despite a decline in our overall turnover, we succeeded in increasing our SLA (Service Level Agreements) revenue during the last year by 14%, and at the moment services of 35% of our total revenue.

Page Number 6 Letter to the Stakeholders

We successfully fi nished our service process certifi cation for the ISO 20 000 standard. At the moment only six companies in the Baltics and the whole of Scandinavia have managed this. Thanks to this, we are able to provide our customers with a better service. This was also proved by the latest customer satisfaction survey, which improved by 0.05% against a fi nal fi gure of 4.33 in 2008, deliver-ing a fi gure of 4.38 in 2009.

Our new Hansab slogan (Hansab it works) represents the qualities which we relate to customer service and operational effectiveness.

Despite the current complicated economic environment, we con-stantly continue to invest in new products, processes and mar-kets. We have succeeded in establishing a company in Ukraine and during the current year we are waiting for the fi rst results to come in. As well as this, we have completed some successful projects in the Belarus market and will continue to develop our business there.

We are confi dent that, together with the improving economic environment in our markets, our investments will deliver the very best results.

Page Number 8 What is Hansab?

HistoryHansab was fi rst founded in Estonia, in 1991 by present CEO Aigar Urva and Hans Tombach. Throughout the years, it has developed into a leading company providing complete business solutions for businesses in the Baltic region.

In 2005, Hansab Group OÜ was established to manage Hansab Group enterprises, business development and central coordination of the focal processes.

In 2009, new company was founded in Ukraine, Kiev in order to expand the knowledge and expertise to the wider territory.

Vision“Leading, reliable and innovative provider of complete solutions for businesses”

Territory Hansab companies are spread all over the Eastern Europe: Estonia, Latvia, Lithuania and Ukraine. This is what we call Hansab Territory.

Aim of the BusinessAim of Hansab businesses is to offer its customers the highest and most reliable complete solutions for protection and handling of valuables.

What is Hansab?

Page Number 9 What is Hansab?

Market PositionHansab has earned a position of the leading supplier of full solu-tions for business (including retail and public sectors) in the Baltic’s and now aims to expand even further.

People in Hansab135 people belong to Hansab team, and as many as two thirds are engaged in the maintenance of devices.

ActivityHansab is involved in the following spheres of activity: • sales of products • after sales service • consultancy services

All processes, services and structure are the same in all Hansab companies. This ensures high level services no matter the location.

Hansab Group is the only company in the Baltic’s that offers such wide range of products and solutions. According to the latest sta-tistics, companies service approximately 20 000 devices, including 1700 automatic teller machines (ATMs).

SuppliersHansab has been a partner to more than 60 suppliers, selling prod-ucts from the leading manufacturers such as NCR, Gunnebo Group, Q-Matic, Vasco, De La Rue, Talaris, Scan Coin, Ingenico and other.

Advantages of Being a ClientNow, Hansab territory customers gain more in having one partner for all of the three countries and as of 2009, a company in Ukraine as well. The key advantage in this case is integrated technical sup-port Hansab supplies to them. Clients, situated in the mentioned above region, have a possibility to be provided with a centralized service. In return, customers benefi t from well structured fi nancial management, lower costs, organized logistics of goods and spare parts.

Service CapabilityAll Hansab companies have implemented focal IT Infrastructure Library (ITIL) processes, which are mandatory to obtain excellence in any service organization.

Now, Estonian company is the fi rst one to acquire ISO 20 000 cer-tifi cate in Estonia and at the end of the IIQ, Latvian and Lithuanian companies should follow.

Quality The quality of organizational activities is constantly being revised and updated. Therefore, Estonian and Lithuanian businesses have acquired Quality Management awards – one of the most prestig-ious criteria for an organization’s evaluation.

Hansab AS 5 8 35 49

admin sales service & support total

Hansab SIA 4 6 24 34

Hansab UAB 4 8 16 37

Ellore OÜ 1

Hansab TOB 3

BOS OÜ 4

Hansab Group OÜ 7

Total employees in Hansab Group companies

with working contracts (excluded employees in maternity leave)

135

Algo Puusepp,Algo Puusepp, Service Support ManagerService Support Manager

Page Number 13 Service: Focus to Excellence and Speed

ITIL helps to improve service capability and quality

Any service company that wants to operate in a professional manner should implement service processes that ensure service quality and compliance with customer requirements. ITIL (IT Infrastructure Library) is so far the best practice how to build up a service organi-zation. Offi ce Government Commerce (OGC) was founded in 1985, in England, and is today one of the most rapidly rising service management frameworks.

When companies begin to deliver services they implement most common processes like Incident Management and Problem Manage-ment. They mostly focus how we solve incidents and not dealing with service strategy planning so much.

As a result of an independent international survey about implementation of service processes in the companies, conducted by Hornbill, service software management provider, most common process is incident management (96%) closely followed change management 84% and then the problem management by 67%.

Service: Focus to Excellence and Speed


Service support describes how customers receive access to the app rop riate ser vi ces in order to support their business acti vi ties as well as how these services are supported. Servi ces support con-sists of the following elements:

• Service desk – initial point of contact for customers• Incident management – aims to resolve incident and restore

provision as quickly as agreed in service level agreement.• Problem management – aims to fi nd out root reasons why

we have incidents and increase technical competence • Change management – addresses to the approval and con-

trolled implementation of changes to the service management processes or to customer equipment

• Confi guration management – ensures accurate databases of customer equipment confi gurations

• Release management – deals with the implementation of upgrades for customer’s equipment.

Service delivery processes, on the other hand, describe those serv-ices that the customer needs to support their business, and what is needed to provide these services. The delivery of the process at hand process consists of the following:

• Capacity management – ensures existence of all resources to assure agreement conditions fulfi lling what is agreed with customers

• Service Financial Management – dealing with budgeting and fi nancial reporting

• Service Availability – dealing with measuring services avail-ability. How available are Hansab services to customers .

• Service continuity Management – ensures continuous running of services to customers. Dealing with evaluation and obviate of risks what are connected with offering services

• Service level management – objective is to make clear agreements with customers. Dealing with monitoring and reporting how with customers agreed conditions are fulfi lled.

• IT security Management – dealing with security questions to protect customers data

Service processes are divided into two categories: services support process and service delivery process.


Little, however, is known about the fact that majority of the operations are connected to the service support processes and just under 50% companies pay attention to intangible asset, service delivery, which changes one crucial component – quality, in overall service function.

Graph nr 2: Service support and service delivery

Incide

nt

Chang

e

Prob

lem

Config

urat

ion

Relea

seSL

M

Contin

uity

Availa

bility

Finan

cial

Capac

ity0

100

Service Support Service Delivery


Hansab has acknowledged the key benefi ts that a well balance ITIL structure provides: not only the incident, change or confi gura-tion management, but the evident rise in service quality through Service Delivery Process (See graph nr.3).

Graph nr 3: Service Delivery Process

010

0

Service quality

Standardised process adoption

Customer Satisfaction

Benefited from best practice experiences

Reduction in IT downtime

Interaction of IT with rest of business

Call fix rate

Return on IT spending

Improved M

orale of IT

Financial contribution of IT to business

Other

Page Number 18 ISO 20 000 Certifi cation

Hansab maintains more than 3,000 payment terminals and 750 ATMs in Estonia, as well as thousands of security and money han-dling devices, queuing and parking machines. Hansab started ITIL implementation process back in 2007 and the following processes have begun to be implemented in all of the Baltic countries. Now, the certifi cation is awaiting Latvian and Lithuanian companies in May 2010.

”In addition to the Internet bank, ATMs and payment terminals are the most frequent direct contact for the customer with the bank and the reliability of these is extremely important for us,” Hanno Hussar, Head of the Operations Division of Swedbank Eesti, the largest cooperation partner of Hansab, noted. “The certifi cate given to Hansab is proof for the customers that the machines and card terminals are in working order almost non-stop.”

There are only 458 companies in the world who have the ISO 20000 certifi cate, and Hansab now belongs to 6 of them in the whole of Nordic and Baltic regions, representing the highest qual-ity certifi cate in this fi eld of activity.

The certifi cate assures to our customers that Hansab is a high-quality partner who guarantees the sustainability of the service. The key words are security and reliability, towards which we strive every day as shown by the receipt of the ISO 20000 certifi cate.

ISO 20000 is directly related to the globally recognised informa-tion technology process management framework Information Technology Infrastructure Library (ITIL), which dates back to 1985 in England. ITIL handles the best practice of the management of IT services.

ISO 20 000 Certifi cation We are proud to inform that Hansab received the ISO 20000 certifi cate as the fi rst com-pany in Estonia in February of 2010.

Page Number 19 ISO 20 000 Certifi cation

“As Hansab uses the ITIL processes at the management of the services provided to customers, the management system of the company had to be certifi ed. The certifi cate proves, with the audit conducted by an accredited certifi cation company, that the supply chain of services and the management processes at the company are managed correctly and with a high level of quality, which reduces the risk of the availability of services to customers and ensures constant monitoring and improvement of services.”

The ISO 20000 standard was established in the world in Decem-ber 2005. In Estonia, the ISO 20000 certifi cate was issued fi rst to Hansab, which also has the ISO 9001 certifi cate and has received several awards from various quality contests.

Nerijus Îikas,Nerijus Îikas, Business Development ManagerBusiness Development Manager

Page Number 21 Business Development

BusinessDevelopmentDevelopment Vision for 2010

What happens when nothing is happening? Nothing.

Everything depends on you, not on the situation around you. Of course, no one is isolated from the recession to the global warming, etc. Success depends, however, on how you have prepared for and adapt to adverse conditions.

Here at Hansab Group, we are quite keen on producing an effective buffer through astute analysis, proactive thinking, strategy moni-toring and moderation. This has given us numerous advantages for when a disaster appears – WE ARE READY!


In order to provide a soft landing after the dramatic economic decreases of 2008, we have undertaken the following: • new product strategies• we introduced ourselves to new market sectors such as retail,

the public sector and medicine;• started business activities in export markets (successful

projects in Belarus);• started a company in Kiev, Ukraine;• started to use the EU to support our development and export

projects.

These positive developments were the result of strong team-work and a solid organizational structure along with effective team leaders.

Again we received positive feedback from our customers, due to our partners' trust in the Hansab Company and the people that work for it. Effi cient work and punctuality together with deep business competence and experience are the key points that enabled us to be a strong partner for our customers. Key Account Management principles implementation plays a major role in our strong partnerships.

The developments in Ukraine were especially promising. As nowa-days it’s hard to maintain the organic growth of a company, the management board took the decision in early 2007 to go with a new company in a new territory. The decision seemed risky due to the risks associated with the region, however, the potential rewards were great. We succeeded in realising this move in February 2009 with the opening of a fully functioning company offi ce in Kiev.


We saw our strongest points with regards to the following:• Extensive procedural business know-how;• Proper partnership with global manufacturers on site;• Strong organisational structure that enables company growth;• Our Pan Baltic accounts extend business and ask us to support

them on site;• Customers' requirement to have “fresh air” in the market;• After all the challenges that we endured in the previous year,

new opportunities continue to present themselves. We con-stantly work to create the best product portfolios which will satisfy the needs of our customers. The biggest challenge in front of us at the current time is the development of a strong presence in the Ukrainian market, which will depend on our selection of an effective team there.

I believe that together we’re strong. Let’s work together as partners!

Kari Pavelson,Kari Pavelson, Financial and Quality ManagerFinancial and Quality Manager

Page Number 25 Financial Results

Year 2009 was another interesting and challenging period for Hansab Group.

Global market downturn and deepening economic recession in the Baltic States continued to affect negatively the fi nancial results of Hansab Group throughout 2009.

As a result of weakened demand, Group’s total consolidated turnover decreased by 36% to 11.36 million Euros, compared to 2008. Despite of such a decline in turnover, Hansab Group managed to conclude 2009 with a net loss of only 81 thousand Euros and achieved a positive EBITDA fi gure of 553 thousand Euros.

Such results were achieved through extensive cost-cutting programs, carried out in the whole Group. Companies of the Group proved to be fl exible in adapting to changed market conditions as Group’s total operating expenses were reduced by 28% and labour expenses by 17%, compared to 2008. The number of employees of Hansab Group decreased from 150 in 2008 to 135 in 2009, resulting in higher work effi ciency and sustained high-quality customer service.

Financial Results


Additionally, negative effect on Group’s profi tability was further mini mized as decrease in turnover in such traditional product cate gories as ATMs was partly compensated by the sale of prod-ucts with higher profi t margins. This, together with effective cost- cutting prog rams helped to reduce Group’s total commer-cial ex pen ses by 35% compared to 2008, nearly offsetting the 36% dec line in commercial revenue.

Turnover from service activities has become a vital component in Group’s total turnover, increasing its share from 24% in 2008 to 35% in 2009. This aspect demonstrates the importance of serv-ice, one of the key processes of Hansab Group, in achieving stable fi nancial results also during challenging market conditions.

In year 2009, AS Hansab turnover accounted for 35%, SIA Hansab for 21%, UAB Hansab for 33%, Baltic Operation Serv-ices OÜ for 4%, Ellore OÜ for 5% and other Hansab Group com-panies for 2% of the total turnover of Hansab Group. Latvian company SIA Hansab saw the biggest change in the share of total turnover, decreasing from 28% in 2008 to 21% in 2009. Lithuanian UAB Hansab and Estonian AS Hansab both increased their share in the total turnover during 2009, from 31% to 33% and from 30% to 35%, respectively.

During the same period, the highest profi t was earned by AS Hansab with 144 thousand Euros, followed by UAB Hansab with 53 thousand Euros and by Ellore OÜ with 35 thousand Euros. SIA Hansab and Baltic Operation Services OÜ fi nished the year with losses of 139 thousand and 144 thousand Euros, respectively.

The net loss of Hansab Group for 2009 made up 81 thousand Euros. Financial expenses for 2009 accounted for 180 thousand Euros, and depreciation for 398 thousand Euros (out of which the biggest part was made up by growing depreciation costs from Baltic Operation Services OÜ RVM machines), leading to Group’s 2009 EBITDA fi gure of 553 thousand Euros.

As a result of Hansab Group’s conservative fi nancial policies in the past, Group’s liquidity position is continuously strong. Consolidated balance sheet decreased during year 2009 by 681 thousand Euros, to 8.94 million Euros.


The expansion of Hansab Group’s activities into Ukraine by estab-lishing TOB Ukraine is expected to have a positive effect on Group’s fi nancial results starting from second half of 2010. Moreover, Enterprise Estonia (EAS) subsidies are to be used for investi-gating market opportunities in Belarus and Ukraine.

We expect 2010 to be another challenging year for Hansab Group. However, we believe that Hansab Group’s current competitive cost base and strategy allows us to achieve outstanding profi t margins during the next economic growth cycle.

As a result of Hansab Group’s conservative financial policies in the past, Group’s liquidity position is continuously strong.

Page Number 28 Hansab Group OÜ Consolidated Annual Report

Hansab Group OÜ Consolidated Annual Report

12/31/2009 12/31/2008

thousand EUR

CURRENT ASSETS Cash at bank and in hand 297 931

Customer accounts receivable 1,273 1,071

Various receivable 252 249

Prepaid expenses 198 187

Inventories 1,943 2,368

Total current assets 3,963 4,806

FIXED ASSETS Long-term financial investments 285 445

Tangible assets 4,692 4,370

Total fixed assets 4,977 4,815

TOTAL ASSETS 8,940 9,621

Page Number 29 Hansab Group OÜ Consolidated Annual Report

LIABILITIES AND OWNERS EQUITY Short term liabilities Liabilities 1,654 1,833

Customer advances for merchandise 112 325

Trade accounts payable 863 1,491

Accrued expenses 233 284

Taxes payable 292 375

Total short-term liabilities 3,154 4,308

Long-term liabilities 2,489 1,792TOTAL LIABILITIES 5,643 6,100

OWNER`S EQUITY Minority equity 77 90

Share capital 3 3

Reserves 3 3

Undistributed profit from previous periods 3,304 3,340

Net profit/loss foe accounting year -81 84

Unrealized currency exhange difference -9 1

TOTAL OWNER`S EQUITY 3,297 3,521TOTAL LIABILITIES AND OWNER`S EQUITY 8,940 9,621

12/31/2009 12/31/2008

thousand EUR

Page Number 30 Hansab Group OÜ Consolidated Income Statement

Hansab Group OÜ Consolidated Income Statement

Business revenue 11,380 17,637

Sales revenue 11,289 17,605

Other revenue 91 32

Business expenses Goods, materials, services 5,990 10,821

Operating expenses 1,636 2,276

Labour expenses 3,065 3,694

Depreciation 398 349

Other commercial expenses 118 81

Total commercial ecpenses 11,207 17,221

Financial expenses 180 168

Economic profit -7 248

Income tax 56 94

Net profit / loss for the accounting year -63 154

Minority equity profit 17 69

Owner`s profit -80 85

12/31/2009 12/31/2008

thousand EUR

Janno Kallikorm,Janno Kallikorm, Managing Director of Hansab ASManaging Director of Hansab AS

Page Number 33 Hansab Estonia

During 2009 AS Hansab was able to keep its business profi table despite the cuts in both private and public sector’s investments and the overall economic downturn.

Although the sales targets were not met, accounting for only 67% of the planned, we did see an increase of 3% in service income with company EBITDA being 6,6%.

The key-processes for AS Hansab were continuously Key Account Management in sales and develpoment of service quality and proc-esses, concluded by AS Hansab being the fi rst company in Estonia to receive the ISO20000 certifi cate in the beginning of 2010.

Our customers’ gave us the average of 4,38 points on a 5 point scale in the customer satisfaction survey, which we thank our customer for and consider to be an excellent result.

Hansab Estonia


When developing the queue system, the North Estonia Medical Centre desired to render the work of the operators and doctors of radiology easier, more secure and faster. The earlier calling by name was replaced with a queue system with a numeric display, main display, traffi c lights and electronically controlled doors. When developing the system, convenience and promptness were considered in the fi rst place. For that purpose Hansab developed software for a touch screen computer mountable on the wall at the operator’s workplace, on which all the information necessary to guide a patient through the process of arriving at an examination will be displayed. For the purpose the queue system must control doors, transmit a video image, activate phones and signal lamps.

An approximate 600,000 people a year go to radiological examinations as a whole, whereby the presence of the given solution is vital to the hospital.

The system of the Emergency Medicine Centre was solved accord-ing to the necessity for work of emergency medicine. For the time being, we are working with additional development as a follow-up to fi nal development, which should render work even more fl exible.

The solution of a queue system, on the face of it, complicated for the patient, is becoming more and more acknowledged. Its pur-pose is to ensure maximum satisfaction and a just servicing queue after all.

What We are Proud of in EstoniaThe Innovative Queue System of the North Estonia Medical Centre


The idea behind the system is to associate a queue number with the card of a patient arriving at the reception. When calling the patient, the patient record will be opened automatically, which implicates a signifi cant advantage in time and convenience for the patient, whereas he/she is not going to have to repeat the same story at each doctor – a mere namely intro-duction will suffi ce. In addition, the queue system will read a wristband with a bar code attached to the arm of the patient, with the help of which the patient will be designated in the computer as having arrived from an examination, and a nurse will no longer have to check whether the patient is back or not.

An approximate 600,000 people a year go to radiological examinations as a whole, whereby the presence of the given solution is vital to the hospital.


At the end of 2009 Hansab installed a new parking system, Amano XPARC, in the Stockmann Department Store. XPARC is Amano’s newest solution, which, in addition to its exclusive appearance, was developed taking into account high quality standards, which

will ensure high reliability and longevity of the equipment even in the hands of the most demanding user. All the system components were designed for intensive use in harsh condi-tions and tested in northern climate beforehand. The system

includes entry and exit terminals, barriers and 5 cash terminals. According to the Security Manager of Stockmann, Sergo Kohal, the Amano parking system was chosen mainly because a modern and robust solution was required, and after the implementation of the new system they have noted an increase in positive feed-back by both the customers and employees.

One of the largest parking solutions in 2009 was carried out in small harbours of Estonia – the Ports of Rohuküla, Heltermaa and Virtsu. In connection with an expansion of the waiting area of the ports and the building of new parking lots, Hansab installed an Amano parking system, barriers and info displays. A card payment terminal was installed in the payment station of the parking system, which is weatherproof and suitable for fi eld use. The small harbour project has not fi nished for Hansab and will continue into 2010, when turnstiles, barriers and prism and led displays will be installed in the ports.

Parking System Projects

All the system components were designed for intensive use in harsh conditions and tested in northern climate beforehand.


Of biometric projects the biggest was the access and working time calculation system projects of Eesti Pagar and Kohimo. Eesti Pagar is a baking industry located in Paide, and over 300 people are working there. In 2009 Hansab installed an access and work-ing time calculation system with fi ngerprint sensors for Eesti Pagar. A total of 30 pieces of different bio-metric equipment was installed. The Kohimo Factory is operating in the manufacturing of metal constructions, and about 100 employees are working in the factory. 5 pieces of biometric equipment and turnstiles were installed in the Kohimo Factory.

Biometrics

In 2009 Hansab installed an access and working time calculation system with fingerprint sensors for Eesti Pagar.

Ingemars Liakoviãus,Ingemars Liakoviãus, Managing Director of Hansab SIAManaging Director of Hansab SIA

Page Number 39 Hansab Latvia

We have left the disaster behind

It would be an understatement to declare that 2009 was challenging for us in Latvia. Just a few fi gures can describe the negative situation which confronts enterprises in Latvia operating in the local market. The GDP drop in 2009 was 18%, sales drop 31.4% and unemployment 15% by the end of 2009. SIA Hansab has faced a lot of challenging situations and had to make many unpopular decisions.

Hansab Latvia


At the beginning of 2009, SIA Hansab started without local management which had resigned due to poor results in 2008. Only by early spring were all vacancies fi lled and the company could start the diffi cult path of restructuring and optimization. The economic downturn pressed us to evaluate each single employee’s skills, abilities to adapt to the new situation in market. We were also forced to re-evaluate each person’s workload and due to the market drop we combined some duties in the company and made it more effective. All of the aforementioned steps resulted in the total headcount being decreased by 12 people, with the addition of a few new faces in the sales department. All steps mentioned above signifi cantly decreased our costs, and made our company much more effective. We have kept the most professional, experienced and competent employees and we have employed active, customer friendly and target oriented team members in sales. We entered 2010 in good shape and are ready for any kinds of challenge.

In late spring of last year SIA Hansab moved to a new offi ce. We decided to change from a small and old-style downtown offi ce to a new, modern and cosy offi ce building in a fast developing region of Riga. Our new offi ce is much more suitable for maintain-ing a good standard of cooperation with our customers and partners. We have space for organizing customer events, seminars, meetings, conferences, and training on our premises. We are proud of our new offi ce.

Our product sales turnover decreased signifi cantly, however, we managed to increase our Service Level Agreements (SLA) revenue. On 1 July 2009, we won a tender and signed a 4 year contract with AS Parex Bank for ATM services and monitoring. This con-tract guaranties our service department regular and predictable income. This was an important deal for us.


One more development of which we are quite proud is our regu-lar annual customer satisfaction survey results for 2009, which indicated 4.34 points on a 5 point scale. Compared to the 2008 results, which amounted to 4.16, this was a large improvement. These improved results have come in an environment in which customers are becoming more sensitive to quality concerns and employees are taking on greater responsibilities.

In summation, 2009 was a year of changes, hard decisions and great efforts. But most importantly it gave us great experience, namely the experience of managing business in a downturn.

I think that in the future, the best crisis managers will come from Latvia.

Our new office is much more suitable for maintaining a good standard of cooperation with our customers and partners.

Darius Îekonis,Darius Îekonis, Managing Director of Hansab UABManaging Director of Hansab UAB

Page Number 43 Hansab Lithuania

Overview of 2009 Activities

The year 2009 for UAB Hansab was one of great challenges and changes. The company results had increased every year in conjunction with the Lithuanian economy, but 2009 saw the inverse effect.

First and foremost, Hansab celebrated the fi fteenth anniversary of the commencement of its activities in Lithuania. It is a pretty long operating life for a company which is engaged in niche activities. Over the entire fi fteen years a great deal of attention has been paid to customer satisfaction, to the continuous improvement of work quality and to the maintenance of long-term relationships. The right course of action was proved in a customer survey, in which customers assessed Hansab’s activities with a highest-ever score of 4.55 (in a fi ve-point scale). It means that for the entire fi fteen years the company has been on the right track.

Hansab Lithuania


Ahead of the fi fteenth anniversary, Hansab was faced with new challenges. In 2009 the composition of Hansab’s manage-ment had changed. I, as the new general manager, not only had to deal with the challenges that arose, which were a condition of the company’s management being replaced, but also lead the company at a time at which economic con-ditions had been changed.

Over the last decade, Hansab’s results have grown annually, but in 2009 the company had to accept the changed conditions as a result of the general credit crisis. In 2009 Lithuania had one of the largest GDP reductions in the European Union, and completed the year with a GDP decline of -13.2%. The general economic situation has had an impact on our business too. Company rev-enue fell by 31% when compared with 2008. As UAB Hansab worked for many years in the banking sector, the main part of its revenue was derived from this sector. The global banking crisis did not leave Lithuania in the best of health after it had passed on. In order to optimise their businesses, many banks started closing

branches. This was in direct opposition to our results, because in the last couple of years this was one of the most rapidly growing sectors, which served to increase our revenues.

Support services were not as drastically affected as those in sales. A well-functioning service network has helped to retain the basic customer segment and has given them an appropriate level of service. As a result of this, service revenue remained unchanged when compared with 2008.

Despite the economic shrinkage, in 2009 Hansab continued its activity and invested into the improvement of the business. Many resources and a good deal of time had been spent on the devel-opment of new areas: new products dedicated for new custom-ers (in the non-banking sector), and development (new partners, new products, new clients). In 2008 Hansab obtained a certifi cate which gives permission to sell and service X-ray medical machines. At the end of the year the company signed the fi rst contracts of sale for these machines. New cooperation agreements were signed


with equipment manufacturers and suppliers. In 2009 a strategic partnership with the Swisslog company in Sweden was launched regarding the sale of service activities. Also signed was the fi rst cooperation agreement, which opened new export routes for serv-ice activities. There was also a lot invested in to the ITIL service processes installation, which has been prepared for certifi cation under the ISO 20000 standard. The company fi rst plans to obtain this certifi cate in Lithuania in the fi rst half of 2010.

The year 2009 presented plenty of challenges that led to a review of the com-pany’s activity. We are glad that the team remained stable. The diffi culties we all incurred and the lessons we have learned will allow us to continue to success-fully develop the company’s activities in recovering out economic entourage.

A well-functioning service network has helped to retain the basic customer segment and has given them an appropriate level of service.

Alar Alumaa,Alar Alumaa, Managing Director of Ellore OÜManaging Director of Ellore OÜ

Page Number 47 Ellore

ElloreOverview of Ellore Activities in 2009

The year 2009 was challenging for Ellore Company. The main priority of the company was to introduce solutions in the whole Baltic market and extend installation base in Lithuania. During the summer of 2009 all of the cash registers of Mc Donald’s restaurants in Estonia and Lithuania were equipped with the new type of Ingenico Pinpad and Software applications. All in all, Ellore sold more than 1200 items of card payment devices during the preceding year.

Page Number 48 Ellore

Although economic downturn in 2009 directly hit the company’s revenue, there were several new projects initiated which should ensure positive results in 2010. Most of the new projects were connected with unattended card payment applications solutions. At the end of 2009 development of the Software application for Self Service kiosk for Hiiumaa and Saaremaa Ferry line Self Service ticket sales was fi nalized. This universal solution can be used in wide range of ticketing applications.

We are proud to announce, that we have made breakthrough in the parking segment. There were several new payment modules installations in addition to the existing parking systems, but as well new integrations to the two additional closed area parking solutions. Ingenico unattended terminal solution was introduced in unattended petrol station environment. Four different pilots’ projects were launched in numerous petrol companies to prepare them to the EMV migration deadline in June of 2010.

Ellore supports global growth efforts of its existing customers by developing and providing new service solutions across geo-graphic boundaries. Furthermore, Ellore is seeking new customers in banking, merchant and corporate sectors in whole Baltic area.

There were several new payment modules installations in addition to the existing parking systems, but as well new integrations to the two additional closed area parking solutions.

Andres Johannson,Andres Johannson, Managing Director of BOS OÜManaging Director of BOS OÜ

Page Number 51 BOS

Baltic Operation Services (BOS)Summary of activities in 2009

During the third year of its operations, BOS set its main focus on developing activities related to reverse vending machines. In 2009 BOS was mainly involved in the installation of reverse vending machines in two supermarket chains in Estonia resulting in an overall number of 44 machines operating in Estonia. Also, we were optimising various operational processes and costs in order to achieve the best possible results, taking into account our resources.

During 2009, BOS was able to prove that the company is competitive in the fi eld of reverse vending and has as well gained 2nd position within the Estonian market.

In 2010, our focuses will be on strengthening our market position, making operations even more effective and fi nding additional development opportunities.

All achievements require a new way of thinking.

Page Number 52 www.hansab.com

Hansab AS Head office

TALLINN 11415 Keevise 11 Ph. +372 605 9800 Fax +372 605 9839

TARTU 50112 Aardla 15 Ph. +372 736 6444 Fax +372 736 6445

JÕHVI 41533 Jaama 14 Ph. +372 337 0188 Fax +372 337 0188

PÄRNU 80019 Jalaka 4 Ph. +372 443 1440 Fax +372 443 1440

KURESSAARE 93812 Rohu 5 Ph. +372 666 1503

Hansab SIA Head office

R±GA LV-2167 Plienciema 16 Ph. +371 6 732 5550 Fax +371 6 732 6462

RîZEKNE LV-4601 Atbr¥vo‰anas Ave. 121b Ph. +371 6 462 4020 Fax +371 6 462 4020

LIEPÅJA LV-3401 Ludvi˙a St. 7 Ph. +371 6 342 3455 Fax +371 6 342 3455

VALMIERA LV-4201 R¥gas St. 36 Ph. +371 6 423 1453 Fax +371 6 423 1453

DAUGAVPILS LV-5401 Gimnazijas St. 16 Ph. +371 2 923 0352

Hansab UAB Head office

VILNIUS LT-03154 Savanori˜ Ave. 180a Ph. +370 5205 8800 Fax +370 5205 8811

KAUNAS LT-50187 Savanori˜ Ave. 204-171 Ph. +370 3733 2740 Fax +370 3733 2740

KLAIPñDA LT-91252 TilÏòs St. 29 Ph. +370 4631 2994 Fax +370 4631 2994

·IAULIAI LT-76339 Îemaitòs St. 43 Ph. +370 4152 6324 Fax +370 4152 6324

PANEVñÎYS LT-35135 Pušalato St. 38 Ph. +370 6151 4345

“We are what we repeatedly do. Excellence, therefore, is not an act, but a habit”

Aristotle

Ellore OÜ Head office


Baltic Operation Services (BOS) OÜ Head office


Hansab TOB Head office

KIEV 04050 Melnikova 12 Ph. +38 050 0742796

hansab group 2010 annual report

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