navita annual report 2009

8/7/2019 Navita Annual Report 2009

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HALDEN LOS ANGELES TORONTO LONDON EDINBURGH OSLO STOCKHOLM

Annual Report 2009



THIS IS NAVITA

CEO’S COMMENTS

2009 IN BRIEF

MARKET OUTLOOK

STRATEGY

OUR CUSTOMERS

INCOME STATEMENT

BALANCE SHEET

CASH FLOW STATEMENT

STATEMENT OF CHANGES IN EQUITY

NOTES TO FINANCIAL STATEMENTS 2009

AUDITOR’S REPORT

BOARD OF DIRECTOR’S REPORT

i n d e x

2 - CONTENT INDEX

3

4-5

6-7

8

9

10-11

12

13-14

15

16

17-33

34

35




Annual Report 2009

Navita’s roots can be traced back to 1988 when Institutt

for Energiteknikk (IFE), an independent research or-ganisation in Halden, Norway, was tasked with research

that led to the formation of Nordpool, the world’s rst

power exchange. IFE spun-o these activities in 1996,

forming Hand-El Skandinavia, which was eventually

acquired by the OM Group, now Nasdaq OMX. When

the opportunity presented itself in 2003, the executive

team bought out the company and renamed it Navita.

POMAX, Navita’s core product and a best-of-breed

solution for energy trading, commodity trading and risk

management, supports trading in electric power, gas,crude oil, coal, emissions / carbon, freight derivatives,

weather derivatives, interest rates, currencies, and

equities. While a true multi-commodity solution that

can be congured for almost any set of energy or other

commodities it has an extended functional footprint in

the area of physical power and physical gas.

Energy producers, energy consumers, trading houses,

banks, hedge funds, and shipping companies the

world over use POMAX extensively. There are today,

more than 100 POMAX installations in Europe, North

America, Australia and Asia. Customers include Abitibi,

Bruce Power, Clarksons, DB Energie, EdF Trading, E.ON,

Finotec, GdF, IMC Shipping, KS&T, Louis Dreyfus Arma-

teurs, Mercuria, Navios, and Statkraft.

Navita has an extensive network of implementation and

solution partners. Navita is a Microsoft Gold Certied

Partner, Oracle Solution Partner, and ThomsonReuters

Solution Partner.

Navita works globally in development, sales, delivery,

and support from oces in Los Angeles, Toronto,

London, Edinburgh, Oslo, and Stockholm. The Navita

headquarters are located in Halden .

NAVITA IS A PREMIER PROVIDER of software and

services to the global energy and commodity

trading community.

3 - THIS IS NAVITA

t h i s i sN A V I T A



w w w . n a v i t a . c o m

Annual Report 2009

TO OUR STAKEHOLDERS | Contrary to the challenges of 2009 and capitalizing on its uniqueness,

Navita racked up protable progress in new markets with new customers and new technology.Leveraging this progress forward, Navita adopts a new vision as it prepares to overtake its compe-

tition in a quest to capture the industry’s product leader position.

2009: A year of signicant accomplishments in a yearof signicant challenge

Signicant challenge

2009 was a very challenging year for Navita, withvery limited IT spend in our sector, especially for newsystems and system replacements; limited ability tonance going operations as well as growth aspirations,

for Navita as well as our clients; and very challengingclient requirements.

Signicant nancial improvement

It was also a year of great accomplishments. The mostvisible accomplishment and the one I am personallymost proud, of is our EBITDA improvement of NOK16,4m from 2008 to 2009, which brought us solidly

into the black, EBITDA-wise. This improvement was theresult of a dedicated and relentless eort by our sta to

simultaneously deliver according to expectations, cutcosts, increase revenues, and improve operationaleectiveness and eciency. This improvement did not

come easily, and I would like to thank our clients andour employees for their eorts in securing this

remarkable performance improvement.

Additionally, we improved our topline by 7% from2008 to 2009, which, while signicantly lower than our

historical average of 25-35% and longer-term growthaspirations of 30%, was an accomplishment in itself.Most of this topline improvement was the result of working more closely with our major and mostchallenging clients. For these clients, during 2009, webecame a much more trusted advisor and long-termpartner than before. Playing this role has allowed us,and me personally, to reect on how we can deliver

superior and consistent business value over time forany current or prospective top-tier client.

New markets, new customers

We also achieved major market breakthroughs in 2009winning two large deals in each of the German and USmarkets, and we signed a new license deal with a majorRussian player signaling a breakthrough in that marketas well. Decisively, these deals demonstrate Navita’sability to meet the diverse needs of dierent markets.

With these license deals in hand and with several large,

multi-year framework agreements with key clients forprofessional services, we kicked-o 2010 with a solid

order book.

Delivering unique solutions faster than anyone

Navita has many competitive advantages but whatis most unique is our size versus benets-delivered

dierential. As a top ve contender, we are a relative

lightweight in size, but a fully-edged heavyweight in

terms of customer value created through product andpartner advantages. No one delivers so much for solittle and nor as fast as we do.

In addition to our competitive advantages of closeclient interaction, a solid understanding of the physicalside of energy markets dating back to the formation of Nord Pool and the sheer brute force of our organisation,all paid us solid dividends in 2009. But we want more.Navita’s goal of becoming a top three global ECTRM

provider and being ranked as the undeniable Europeanindustry leader, is unmovable but requires an earth-quake event to realise. I believe Navita has the capacityto precipitate this momentous event.

Navita’s industry forecast: earthquake warning

New technologies produce new opportunities. Whilemany of our competitors struggle to maintain theirexistent infrastructures and adapt them to newfunctional requirements – a strategy we feel equivalentto building business along the fault line dividingyesterday from tomorrow, Navita is aligning its

technology strategy with major and robusttechnology trends in the IT industry, something webelieve is needed to deliver the next decade’sperformance requirements. Microsoft leads thetechnological forefront with infrastructure componentssuch as Workow Foundation, AppFabric, and .Net.

Using state-of-the-art, non-proprietary technologylowers Navita’s development costs and enables us tooer generic, open solutions that more easily add ex-cellent workow functionality faster and cheaper than

competitors while delivering a highly congurable

4 - CEO’S COMMENTS




Annual Report 2009

Knut Johansen, CEO

Halden, May 9, 2010

platform our clients can virtually ‘plug straight into’.I believe the rapid emergence in our industry of a singleprovider with the vision to create the world’s mostscalable and best performing platform with the bestworkow platform, coupled with the world’s best time

series platform, would precipitate an industryearthquake and dislodge today’s predominantplayers. This is our vision and armed with it, Navitagives notice that we are shifting our focus andchanneling our resources to leverage today’sfuture-focused technology to create the most scalableand best performing platform with the best workow,

and to bridge these two with what is already arguablythe world’s best time series platform – POMAX – thecritical key to delivering futurefunctionality.

Our aim then is nothing short of developing the ECTRMindustry’s best solution by delivering a comprehensiveplatform that fulls the key functionality, scalability

and performance needs of the top-tier customersegment, and doing so within 2011.

Thank youOur performance and progress in 2009, owed to ourclients, employees, and suppliers, is a tremendoussource of inspiration from which to launch our 2010/11ambitions of developing and delivering the ECTRMindustry’s best solution and securing a top three globalposition. For that, I sincerely thank all our stakeholderswho played a principal part! With your equal eorts this

year, we can all expect an exciting, eventful and evenbetter 2010 for Navita.




Annual Report 2009

During 2009 and despite the nancial crisis in winter 2008/2009, NAVITA continued to grow the

business, increasing 2008 to 2009 revenue by around 7%, and improving our EBITDA by more

than 16 MNOK.

Much of the strong performance in rst half of 2009

was a result of preparations and work conducted in thefall of 2008 in response to the nancial crisis, when we

adjusted our cost base, managed to maintain or growour position in key markets, and remained loyal to ourstrategy of pursuing the market in German-speakingEurope.

2009 was a year with fewer new contracts than the year

before. We managed, however, to grow revenue,primarily by compensating for reduced licenserevenues with increased after sales activities.

In particular, during the second half of 2009, Navitaestablished several long-term customer partneragreements with highly demanding, highly skilled andhigh performing key customers. These agreementsboosted prioritisation of important future functionalityin POMAX as well as gave Navita a solid order book.

Our investment in the German market, which started

early in 2008, started to pay o in 2009 as we wereable to continuously grow our footprint in German-speaking Europe throughout 2009.

In 2009, NAVITA continued to develop technology andbuild functionality, in response to customer demands,increased complexity, and exponentially growing datavolumes. In this process of enhancing technology andbuilding functionality, we aggressively leveraged thecustomer partner agreements referred to above, ourMicrosoft Gold Certication, and our strong relationship

with research and science centers and environments,like the Norwegian Center of Expertise in Halden.

NAVITA continued during 2009 to build partnershipswith product vendors with complementary products,and major system integrators.

Towards the end of 2009 we saw a steady growth innew business opportunities, in particular in the ECTRMmarket, and NAVITA’s combined oerings of POMAX

ECTRM, POMAX PENS, POMAX GLM and POMAXCurveManager have become increasingly attractive in

the market place.

2009 was a great year nancially, and a strong order

book combined with a solid sales pipeline at the end of 2009 created a strong basis for a solid 2010. Indeed, weexpect 2010 to be a year in which wecontinue to grow our revenue and prot margins,

enhance our products and oerings, strengthen our

customer relationships, bring onboard skilledresources, and become one of the leading providers inthe world within our market.

2009 in Brief

6 - 2009 IN BRIEF




Annual Report 2009

Our performance and progress in 2009,owed to our clients, employees, and

suppliers, is a tremendous source of

inspiration from which to launch our

2010/11 ambitions of developing and

delivering the ECTRM industry’s best

solution and securing a top three global

position.

“

“

7 - 2009 IN BRIEF




Annual Report 2009

Before looking ahead to 2010, taking stock of 2009, we witnessed an exceptional year, due to

the nancial crisis. In Navita’s annual report for 2008, we predicted a robust market in 2009 with

signicant uncertainty range and dominated by physical players as opposed to banks and hedge

funds.

Market Outlook

We also predicted a market tilted towards systemmaintenance and upgrades, rather than replacementsand new sales. Finally, we predicted interesting growthin Germany, especially in the mid-tier segment. All ourpredictions proved true.

Looking towards 2010 and to some extent into 2011,several clear, consistent, and contrary trends are

emerging:

Geographically, we expect a robust market to developin Europe throughout the remaining part of 2010 andinto 2011, especially in German-speaking Europe andthe UK, as well as Southern and Eastern Europe.

Segment-wise, smaller players, with nancial-side focus

in the market, are denitely back in the game.

At Navita, throughout Q1 2010, we have already seenan interesting increase in interest from smaller playersin our oerings, with a number of deals having been

closed already. Most of these players are fairly pricesensitive leading us to speculate that Navita’s valueproposition of ‘90% of the functionality out of thebox, 50% of the price, and 25% of the implementationtime’, will be particularly attractive to these players.One of the key selling points for NAVITA is deliveringproduct that can keep the simple things simple, but stillcapable of providing full exibility to manage the most

complex requirements. The fact that we see signicant

and constantly growing interest amongst the biggerplayers demonstrates this fact.

Looking at the existing customer base, there is a

generally strong willingness to invest in their currentplatform, which, for Navita, has translated intoincreased demand for professional services.Consequently, as a particular manifestation of thiswillingness, we anticipate a trend to morepartnership-based models, framework agreements, andsimilar.

The interest from bigger physical players has alsotranslated into a number of replacement deals. Webelieve that a particularly interesting bifurcation in this

market will be the choice between multi-year, largeinvestment, made-to-measure implementationmodels, vs. single-year, staged investment,product-based implementation models, and we predict,though with some uncertainty, a general preference inthe market for the latter.

Technology-wise, we predict that customers and

vendors alike will seriously consider SaaS-based andweb-based delivery models for ECTRM systems. Thisprediction is based on interest from key industryanalysts like Utilipoint in exploring such models; veryexplicit predictions from Gartner, the IT industryconsultancy, about the emergence of the ‘cloud’; andthe simple fact that major vendors have started tomarket solutions ranging from traditional hostedsolutions to real cloud-based solutions. Partly as aconsequence of such new delivery models, webelieve that we will see pressure to price accordingto use based on, for example, # seats, # markets, or# transactions. On the functionality side, we expectthat workow and sub-hourly resolution will be key

requirements for many customers in Europe and NorthAmerica.

w w w . n a v i t a . c o m 8 - MARKET OUTLOOK




Annual Report 2009

NAVITA’s strategic focus is to provide best-of-breed solutions for both physical and nancial

energy markets. Our strategic goal of establishing a top 3 position globally within key verticals,

including power, gas, and emissions / carbon, remains rm.

Strategy

In addition, NAVITA will continue to serve the nancial

markets within all commodity verticals, with a clearfocus on cross-commodity capabilities. NAVITA’sstrategic positioning, which is targeted at mid-tieropportunities plus selected top-tier opportunities, of ‘providing 90% of functionality, for 50% of the price,in 25% of the time, with 100% functional coverage’also remains solidly intact. Moreover, this strategicpositioning has been complemented with a dedicatedeort to respond to the particular business needs of

large industry leaders with worldwide presence andaggressive aspirations in the global energy markets.

Looking forward, and to ensure that we achieve ourprotability, growth, and customer satisfaction aims, in

2010 we will focus on ve strategic initiatives:

First, we will streamline the organisation with aparticular focus on rationalising our product portfolioand continue to build up a global delivery organisationcomprised of internal and external delivery resources, aglobal support organisation with 24/7 support

capability, and a QA & Release Management functionthat fully lives up to what our most challengingcustomers expect from us.

Second, we will increase the attractiveness androbustness of our technology platform and align withkey technology trends through completing our .NETmigration, further improve workow functional-ity based upon Microsoft Workow Foundation, and

further increase the performance and scalability of ourunique time series engine. This initiative will becomplemented with continued focus on partnercertication programmes with key technology

providers, as testied by our recent certications as

Oracle solution partner, Microsoft Gold Certied

Partner, and Reuters Solution Partner. We will, as partof this initiative, also expand our functional footprintthrough the inclusion of sub-hourly capabilities.

Third, we will build relevance for current andprospective top-tier clients through three mechanisms:i) deploy our best technical and functional people onclient sites through so-called customer partnershipagreements; ii) ensure that our account managers

develop into trusted and knowledgeable advisors byproviding them with the knowledge and tools theyneed to address our clients’ challenges; and iii) giveour most challenging clients direct access to Navita’sexecutive management, thereby creating an immediatefeedback loop from the market to Navita’s manage-ment.

Fourth, we will actively engage in the competition fortop-notch talent, typically from key energy trading

clusters worldwide, including London, Houston, andOslo. We will also start to tap into the outstandingtalent pool and exceptional technology coming inthrough the National Center of Expertise (NCE) inHalden, Norway. NCE is a governmental designationgiven to top-notch research centers in Norway. NCEHalden is a joint academia / industry center of expertise in the area of energy trading of which Navitais a founding industry partner.

Fifth, after a year of highly successful consolidation in2009 and a NOK 20m+ EBITDA improvement, we will

start to aggressively grow the business in 2010. Thiswill take place in three dimensions:i) geographically, with a focus on North Americanpower, German-speaking Europe, and Eastern Europe;ii) commodity-wise, with a focus on European gas; andiii) delivery-wise, with a focus on new delivery modelslike SaaS (Software as a Service), as exemplied by

POMAX Freight Lite, our new SaaS-based, entry-leveloering for mid-tier players in the maritime freight

derivatives markets.

In addition, we will prudently build partner-basedbusiness, as exemplied in our recent partnership with

market-leading CubeLogic in the area of cubetechnology and credit risk, and business in certaingrowth markets, including Russia and India.

The aim of these strategic initiatives is a solidtechnological, functional, and organisational platformfor future protability, growth, and customer

satisfaction; an eort initiated last year but which will

continue in 2010 testifying to our rm ambition of and

steady course towards establishing a top 3 globalposition for Navita.

9 - STRATEGY




Annual Report 2009

GdF SuezParis, France

GDF SUEZ is one of the leading energy providers in the world, with activities across the entire energy value chain, inelectricity and natural gas, and upstream to downstream. GDF SUEZ relies on diversied supply sources as well as

exible and highly ecient power generation in order to provide energy solutions to individuals, cities and

businesses. The Group employs 200,650 people worldwide and achieved revenues of €79.9 billion in 2009.

When the Global Gas & LNG business line needed a system to perform risk metrics calculations while seamlessly inte-

grating into a complex systems architecture, they chose to contract with Navita for the installation of POMAX.The system went into production in April 2009.

Romain Rochas, Market and Credit Risk Management IT Manager, said :“Considering the multi-dimensional exposure to risk a group such as GDF SUEZ faces on a daily basis, we needed a product robust enough to handle large amounts of data and interface with systems used in other parts of the business. A product also capable of performing complex calculations and generating detailed reports in a timely manner. As of today, we cansay that POMAX has managed to deliver on all fronts.”

For more information about GdF Suez, see www.gdfsuez.com.

MercuriaGeneva, Switzerland and Houston, Texas:

The Mercuria Energy Group is an international group of companies active over a wide spectrum of global energymarkets including crude oil and rened petroleum products, natural gas, power, coal, biodiesel, vegetable oils and

carbon emissions. The Mercuria group is one of the world’s ve largest independent energy traders. In addition to its

trading core, the group has upstream and downstream assets ranging from oil in the ground in California, Canada andArgentina to oil and products terminals in Europe and China, and a biofuels plant in Germany.

Mercuria in Geneva has been a Navita client for some time, and when Mercuria decided to set up a trading desk inHouston, they chose to deploy POMAX as their ETRM system. The system successfully went into production on October2009.

Chris Mudry, Chief Risk Manager, said:“We were initially in some doubt about whether we wanted to deploy in Houston our ETRM solution for European power.However, considering Navita’s existing familiarity with Mercuria’s processes and activities, we decided yes.A highly-qualied blueprinting team with considerable ETRM consulting experience was assembled by Navita and the

system successfully went into production after a 3-4 months project.”

For more information about Mercuria, see www.mercuria.com.

We acquired a signicant number of new customers in 2009, and witnessed a number of existing

customers go into production in 2009. Below is a presentation of a selected few of key projects in

2009. These projects have been selected because they allow us to demonstrate the breadth of our

oerings, presented us with novel challenges, or in other ways represented sources of

organisational learning:

Our customers

10 - OUR CUSTOMERS




Annual Report 2009

Romande EnergieMorges, Switzerland

Fifth largest electricity distributor in Switzerland, Romande Energie reaches 260 000 residential and business

customers. Romande Energie is active in production, grid management and commercialisation. While historicallyfocused on the Vaud country and the lower Valais, the company is ideally positioned to cover the French part of Switzerland.

It sources most of its electricity from a dozen of its own hydroelectric plants, a few renewable energy sources, and EOS,the major supplier in Western Switzerland, in which it has a shareholding of just under 30%. When Romande Energieneeded a system for physical power trading, they chose to contract with Navita for the installation of POMAX.The system went into production in January 2009.

Jean-Pierre Mitard, CEO of Romande Energie Commerce, said:“Considering the complexity of our portfolio and the diculties that most companies meet in the implementation of an

ETRM system, we were originally quite skeptical to whether NAVITA would be able to deliver the conguration and set-up

of POMAX in such a short timeframe. Less than 6 months after the launch of the project, we reached our objectives of being fully operational within the promised timeframe and within the budget”.

For more information about Romande Energie, see www.romande-energie.ch.

11 - OUR CUSTOMERS




Annual Report 2009

w w w . n a v i t a . c o m 12- INCOME STATEMENT

Income Statement

2008 2009 Note 2009 2008

OPERATING REVENUE

Sales

Other operating revenue

TOTAL OPERATING REVENUE

75 192 109

0

75 192 109

89 577 712

0

89 577 712

94 301 661

0

94 301 661

100 647 128

3 285

100 650 413

8,28

OPERATING EXPENSES

Cost of Sales

Personnel expenses

Other operating expenses

TOTAL OPERATING EXPENSES

1 271 828

27 216 747

59 716 236

88 204 811

3 885 866

28 644 140

52 974 552

85 504 558

2 028 449

58 158 380

43 569 941

103 756 770

4 537 306

58 554 250

30 658 107

93 749 663

20,21,23,24,26

22,23,25,26

EBITDA

Depreciation

-13 012 702

4 705 615

4 073 154

5 544 476

-9 455 109

5 001 277

6 900 750

5 881 81812

EBIT-17 718 317 -1 471 322 -14 456 3861 018 932

FINANCIAL INCOME AND COST

Interest income

Other nancial income

Income from inv. in group comp.

Interest expenses

Other nancial expenses

NET FINANCIAL PROFIT

28

28

189 325

5 930 070

515 335

665 606

4 271 359

1 697 765

41 692

2 484 296

80 161

447 903

2 669 471

-511 225

48 166

2 485 465

0

432 568

2 703 712-602 649

311 679

6 297 661

0

648 608

4 307 045

1 653 687

PROFIT BEFORE TAXES

Income tax expense

-16 020 552

3 316 202

-1 982 547

0

-12 802 699

4 195 610

416 283

691 36719

NET PROFIT-19 336 754 -1 982 547 -16 998 309-275 08427

OTHER COMPREHENSIVE INCOME

Exchange dierences

NET OTHER COMPREHENSIVE INCOME

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

0

0

-19 336 754

0

0

-1 982 547

-209 598

-209 598

-17 207 907

-919 922

-919 922

-1 195 006

TRANSFERS

Allocated to retained earnings

TOTAL TRANSFERS

-19 336 754

-19 336 754

-1 982 547

-1 982 547

Parent company Group

2008 2009 2009 2008Note




Annual Report 2009

HALDEN LOS ANGELES TORONTO LONDON EDINBURGH OSLO STOCKHOLM13- BALANCE SHEET

Balance Sheet


2008 2009 2009 2008Note

Assets

FIXED ASSETS

Goodwill

Capitalized development cost

Deferred income tax assets

Operating equipment

Shares in subsidiaries

Other long term receivables

TOTAL FIXED ASSETS

0

34 758 705

0

322 710

25 723 770

27 126

60 832 311

0

34 421 634

0

116 097

25 723 770

24 297

60 285 798

17 642 581

34 758 705

150 357

913 782

0

27 126

53 492 551

17 642 581

34 421 634

107 406

420 535

0

24 297

52 616 453

11,13

10,13

19

9,29

5

CURRENT ASSETS

Trade receivables

Other short term receivables

Cash and cash equivalents

TOTAL CURRENT ASSETS

TOTAL ASSETS

9 026 820

11 608 730

5 880 324

26 515 874

87 348 185

11 255 570

5 901 699

5 502 864

22 660 133

82 945 931

14,28,29

14,28,29

15

15 065 933

7 995 882

9 118 170

32 179 985

84 796 438

11 767 871

14 073 225

11 256 634

37 097 730

90 590 281




Annual Report 2009

Balance Sheet

EQUITY

Subscribed equity

Share capital

Non registered capital

Share premium fund

Total subscribed equity

Retained equity

Retained earnings

Total retained equity

TOTAL EQUITY

1 441 192

0

80 127 612

81 568 804

-28 716 104

-28 716 104

52 852 700

16,24,27

16

16


2008 2009 2009 2008Note


1 441 192

0

80 127 612

81 568 804

-30 657 808

-30 657 808

50 910 996

1 441 192

0

80 127 612

81 568 804

-27 297 146

-27 297 146

54 271 658

1 441 192

0

80 127 612

81 568 804

-26 142 983

-26 142 983

55 425 821

LONG TERM LIABILITIES

Deferred income tax liability

Other long term liablities

TOTAL LONG TERM LIABILITIES

CURRENT LIABILITIES

Trade payables

Payable tax

Public duties payable

Other current liabilities

TOTAL CURRENT LIABILITIES

TOTAL EQUITY AND LIABILITIES

0

7 443 333

7 443 333

11 733 975

0

3 937 277

11 380 900

27 052 152

87 348 185

0

4 716 667

4 716 667

9 909 309

0

3 735 041

13 673 918

27 318 268

82 945 931

18,28,29

28

19

17

35 735

4 716 667

4 752 402

2 221 951

605 456

5 306 086

17 638 885

25 772 378

84 796 438

11 680

7 443 333

7 455 013

5 742 017

823 264

6 192 986

14 951 180

27 709 447

90 590 281

Halden, March 3rd, 2010

14- BALANCE SHEET

Knut H. Johansen

CEO / Board Member

Per Bakseter

Chairman

Harald Jeremiassen

Board Member

Erik Åsberg

Employee Representative

Sigurd Moe Paulsen

Board Member

Equity and liabilities




Annual Report 2009


Statement of Cash FlowThe statement of cash ow is a systematic overview that shows how the company has received

and used cash and cash equivalents during the year. The statement of cash ow is supposed to

present the development of operation, investment and nancing during the periods.


2008 2009 2009 2008

Cash ow from operational activities

Operating result before tax

Paid Taxes

Depreciation

Changes in pension obligations

Loss on disposals of operating equipmentCost of options granted to employees

Changes in receivables

Changes in trade payables

Changes in other current assets/debt items

Net cash ow from operational activities

-16 020 552

0

4 705 615

-5 321 646

10 7795 977

2 679 963

6 869 130

3 053 017

-4 017 717

-1 982 546

0

5 544 476

0

040 843

-2 228 750

-1 824 666

7 800 642

7 349 999

416 282

-823 264

5 881 818

0

11 74140 843

-3 771 671

-3 511 199

7 711 492

5 956 041

-12 802 699

-1 298 677

5 001 277

-5 321 646

10 7795 977

4 296 805

2 636 750

1 942 983

-5 528 452

Cash ow from investment activities

Purchase of operating equipment

Purchase of intangible assets

Purchase of group companies

Net cash ow from investment activities

Cash ow from nancial activities

Raise of long term debt

Payment of long term debt

Issue of shares

Net cash ow from nancial activities

Net changes in cash and cash equivalents

Foreign exchange changes

Cash and cash equivalents 01.01

Cash and cash equivalents 31.12

-87 851

-4 984 926

0

-5 072 777

3 360 000

-1 750 000

181 966

1 791 966

-7 298 528

0

13 178 852

5 880 324

0

-5 000 793

0

-5 000 793

0

-2 726 666

0

-2 726 666

-377 460

0

5 880 324

5 502 864

-119 945

-5 000 793

0

-5 120 738

0

-2 726 666

0

-2 726 666

-1 891 363

-247 101

11 256 634

9 118 170

-537 311

-4 984 926

0

-5 522 237

3 360 000

-1 750 000

181 966

1 791 966

-9 258 723

350 749

20 164 607

11 256 634

15 - STATEMENT OF CASH FLOW




Annual Report 2009

Statement of Changes in Equity


Parent Company

1 209 54666 517

165 129

0

0

1 441 192

1 441 192

0

0

1441 192

Share Capital Non registeredCapital

Share premiumfund

Other Equity Total Equity

Equity 01.01.2008Registration of raise of capital

Raise of capital

Options granted to employees

Net prot

Equity 31.12.2008

Equity 01.01.2009


Net prot

Equity 31.12.2009

15 981 832-15 981 832

0

0

0

0

0

0

0

0

64 195 46015 932 152

0

0

0

80 127 612

80 127 612

0

0

80 127 612

-9 385 3270

0

5 977

-19 336 754

-28 716 104

-28 716 104

40 843

-1 982 546

-30 657 808

72 001 51116 837

165 129

5 977

-19 336 754

52 852 700

52 852 700

40 843

-1 982 546

50 910 996

GroupShare Capital Non registered

CapitalShare premium

fundOther Equity Total Equity

1 209 546

66 517

165 129

0

0

0

1 441 192

1 441 192

0

0

0

1441 192

Equity 01.01.2008

Registration of raise of capital

Raise of capital


Currency translation dierences

Net prot

Equity 31.12.2008

Equity 01.01.2009


Currency translation dierences

Net prot

Equity 31.12.2009

15 981 832

-15 981 832

0

0

0

0

0

0

0

0

0

0

64 195 460

15 932 152

0

0

0

0

80 127 612

80 127 612

0

0

0

80 127 612

-8 941 053

0

0

5 977

-209 598

-16 998 309

-26 142 983

-26 142 983

40 843

-919 922

-275 085

-27 297 147

72 445 785

16 837

165 129

5 977

-209 598

-16 998 309

55 425 821

55 425 821

40 843

-919 922

-275 085

54 271 657

16 - STATEMENT OF CHANGES IN EQUITY




Annual Report 2009


Notes to the Financial Statement

Note 1 - General information

Navita Systems AS and its subsidiaries develop, sell and implement software solutions

for physical and nancial trading of electricity, freight and other raw materials, settlement

systems for energy stock exchanges and logistic solutions for gas. In addition the Group

delivers consultancy services within the same markets. Its main deliveries are to the Nor-

dic Counties, Great Britain and North America. Navita Systems AS is a Norwegian company,

with its main oce in Halden. For an overview of the subsidiaries see note 5. These con-

solidated nancial statements have been approved for issue by the Board of Directors on

March 3rd 2010.

2.1 Basis of preparationThe consolidated nancial statements of the Navita

Group have been prepared in accordance withInternational Financial Reporting Standards (IFRS).The consolidated nancial statements have been

prepared under the historical cost convention.Thepreparation of nancial statements in conformity with

IFRS requires the use of certain critical accountingestimates. It also requires management to exercise itsjudgement in the process of applying the Company’saccounting policies. Areas involving a higher degree of

judgement or complexity, or areas where assumptionsand estimates are signicant to the consolidated

nancial statements, are disclosed in note 6.

2.2 ConsolidationSubsidiaries are all entities (including special purposeentities) over which the Group has the power to governthe nancial and operating policies generally

accompanying a shareholding of more than one half of the voting rights. The existence and eect of potential

voting rights that are currently exercisable orconvertible are considered when assessing whether theGroup controls another entity. Subsidiaries are fully

consolidated from the date on which control istransferred to the Group. They are de-consolidatedfrom the date that control ceases.

See note 5 for an overview of subsidiaries.

The purchase method of accounting is used to accountfor the acquisition of subsidiaries by the Group. Thecost of an acquisition is measured as the fair value of the assets given, equity instruments issued andliabilities incurred or assumed at the date of exchange,plus costs directly attributable to the acquisition.Identiable assets acquired and liabilities and

contingent liabilities assumed in a business combina-tion are measured initially at their fair values at theacquisition date, irrespective of the extent of any

minority interest. The excess of the cost of acquisitionover the fair value of the Group’s share of theidentiable net assets acquired is recorded as goodwill.

If the cost of acquisition is less than the fair value of thenet assets of the subsidiary acquired, the dierence is

recognised directly in the income statement.

Inter-company transactions, balances and unrealisedgains on transactions between group companies areeliminated. Unrealised losses are also eliminated butconsidered an impairment indicator of the assettransferred. Accounting policies of subsidiaries havebeen changed where necessary to ensure consistency

with the policies adopted by the Group.

17 - NOTES TO THE FINANCIAL STATEMENT

Note 2 - Summary of signicant accounting policies




Annual Report 2009

2.3 Foreign currency translation(a) Functional and presentation currency

Items included in the nancial statements of each of

the Group’s entities are measured using the currency of the primary economic environment in which the entityoperates (‘the functional currency’). The consolidatednancial statements are presented in NOK, which is the

Company’s functional and presentation currency.

(b) Transactions and balances

Foreign currency transactions are translated into thefunctional currency using the exchange rates prevailingat the dates of the transactions. Foreign exchange gainsand losses resulting from the settlement of suchtransactions and from the translation at year-endexchange rates of monetary assets and liabilitiesdenominated in foreign currencies are recognised in

the income statement.

(c) Group companies

The results and nancial position of all the group

entities that have a functional currency dierent from

the presentation currency are translated into thepresentation currency as follows:(i) assets and liabilities for each balance sheetpresented are translated at the closing rate at the dateof that balance sheet.(ii) income and expenses for each income statement aretranslated at average exchange rates .(iii) all resulting exchange dierences are recognised as

a separate component of equity.

2.4 Operating equipmentAll machinery and equipment is stated at historical costless depreciation. Historical cost includes expenditurethat is directly attributable to the acquisition of theitems. Subsequent costs are included in the asset’scarrying amount or recognised as a separate asset,as appropriate, only when it is probable that futureeconomic benets associated with the item will ow

to the Group and the cost of the item can be measuredreliably. All other repairs and maintenance are chargedto the income statement during the nancial period in

which they are incurred.

Depreciation on all assets is calculated using thestraight-line method to allocate their cost or revaluedamounts to their residual values over their estimateduseful lives.

The asset’s residual values and useful lives arereviewed, and adjusted if appropriate, at each balancesheet date. An asset’s carrying amount is written downimmediately to its recoverable amount if the asset’scarrying amount is greater than its estimatedrecoverable amount.

Gains and losses on disposals are determined bycomparing proceeds with carrying amount. These areincluded in the income statement.

2.5 Intangible assetsResearch and development

Development cost of products witch can be measuredwith reliability and that probably will generate futureeconomic benets is capitalised and depreciated.

Research on new products and maintenance of existing products is expensed as incurred. Costs whichis capitalised contains internal payroll costs andexternal assistance. Public grants regarding capitalizedproducts reduces the capitalized amount.

The cost per hour used for measurement of capitalized development cost is calculated on a basis

of total direct costs divided on total hours. In additionas direct costs from external consultants working ondeveloping products capitalized.

Capitalised development cost is depreciated overthe period the products is excepted to give economicbenets. The asset’s residual values and useful lives are

reviewed, and adjusted if appropriate, at each balancesheet date. An asset’s carrying amount is written downimmediately to its recoverable amount if the asset’scarrying amount is greater than its estimatedrecoverable amount.

Goodwill

Goodwill represents the excess of the cost of anacquisition over the fair value of the Group’s share of the net identiable assets of the acquired subsidiary at

the date of the acquisition. Goodwill on acquisition of subsidiaries is included in intangible assets. Recognisedgoodwill is tested annually for impairment and carriedat cost less accumulated impairment losses.Impairment losses on goodwill are not reversed. Gainsand losses on the disposal of an entity include thecarrying amount of goodwill relating to the entity sold.Goodwill is allocated to cash-generating units for thepurpose of impairment testing. The allocation is madeto those cash-generating units or groups of

cash-generating units that are expected to benet fromthe business combination in which the goodwill arose.

2.6 Impairment of non-nancial assetsOperating equipment and intangible assets withdenite useful life are reviewed for impairment when-ever events or changes in circumstances indicate thatthe carrying amount may not be recoverable. Animpairment loss is recognised for the amount by whichthe asset’s carrying amount exceeds its recoverableamount. The recoverable amount is the higher of anasset’s fair value less costs to sell and value in use.





Annual Report 2009

For the purposes of assessing impairment, assets aregrouped at the lowest levels for which there are sepa-rately identiable cash ows (cash-generating units).

Non-nancial assets other than goodwill that suered

an impairment are reviewed for possible reversal of theimpairment at each reporting date.

2.7 Trade receivablesTrade receivables are recognised at fair value, lessprovision for impairment. A provision for impairment of trade receivables is established when there is objectiveevidence that the Group will not be able to collect allamounts due according to the original terms of re-ceivables. Signicant nancial diculties of the debtor,

probability that the debtor will enter bankruptcy ornancial reorganisation, and default or delinquency

in payments are considered indicators that the trade

receivable is impaired. The amount of the provision isrecognised in the income statement.

2.8 Cash and cash equivalentsCash and cash equivalents includes cash in hand anddeposits held at call with banks.

2.9 TaxesTax expense on the income statement includes payabletaxes and the change in deferred tax for the period. Thechange in deferred tax reects the future payable taxes

resulting from the current year’s activities. Deferredtax is based on accumulated prot, but which will be

payable in subsequent accounting periods. Deferred taxis calculated on net tax-increasing dierences between

the balance sheet items used for accounting purposesand those used for taxation purposes, adjusted fordeductible temporary tax dierences and tax losses

carried forward according to the liability method.

Deferred tax assets are only capitalised to the extentthat it is probable that there will be future taxableincome available for reducing the dierence. Deferred

tax assets are assessed for each period and will bereduced if it is no longer probable that the deferred taxasset can be used.

2.10 Employee benets(a) Pension obligations

Navita Systems AS changed from a dened benet

pension plan to a dened contribution plan as of

01.07.2008. All the subsidiaries in the Group also havedened contribution plans. A dened contribution plan

is a pension plan under which the Group pays xed

contributions into a separate entity. The Group has nolegal or constructive obligations to pay further contri-butions if the fund does not hold sucient assets to

pay all employees the benets relating to employee

service in the current and prior period. The Group has

no further payment obligations once the contributionshave been paid. The contributions are recognised asemployee benet expense when they are due. Prepaid

contributions are recognised as an asset to the extent

that a cash refund or a reduction in the future paymentsis available.

The change resulted in a cost reduction of MNOK5.321.646 in 2008 because of a reversal of the recog-nised pension obligation, and a reduction of personellexpenses.

(b) Share-based compensation

The Group operates an equity-settled, share-basedcompensation plan. The fair value of the employeeservices received in exchange for the grant of the op-tions is recognised as an expense. The total amount to

be expensed over the vesting period is determined byreference to the fair value of the options granted. Ateach balance sheet date, the entity revises its estimatesof the number of options that are expected to becomeexercisable. It recognises the impact of the revision of original estimates, if any, in the income statement, witha corresponding adjustment to equity.

The proceeds received net of any directly attributabletransaction costs are credited to share capital (nomi-nal value) and share premium when the options areexercised.

(c) Prot-sharing and bonus plans

The Group recognises a liability and an expense forbonuses and prot-sharing, based on a formula that

takes into consideration the prot attributable to the

Company’s shareholders after certain adjustments.The Group recognises a provision where contractuallyobliged or where there is a past practice that has cre-ated a constructive obligation.

2.11 Revenue recognitionProduction contracts/system deliveries

The Group’s main business objective is to develop andmanufacture products and systems based on ordersreceived. The processed value of the work in progress

is recognised as operating revenue. Uninvoiced work inprogress is reported on the balance sheet under ‘Othershort term receivables’. Work in progress is stipulatedas incurred production costs plus a proportional shareof the estimated contract prot. Production costs in-clude direct wages, direct materials and a proportionalshare of the individual business areas’ indirect costs,while general development costs, sales costs and com-mon administrative costs are not included in productioncosts.The estimated accrued contract prot shall not exceed a

proportional share of the estimated total contract prof-





Annual Report 2009

it. The proportional share of the contract prot is based

on the degree of completion of the individual contract,which is largely determined by the costs incurred as aratio of the expected overall costs at the time of valu-ation. If the prot on a contract cannot be estimated

with a reasonable degree of certainty, the project willbe recognised without a prot until the uncertainty is

manageable. All projects are followed up on an ongoingbasis with project costings. Where a costing anticipatesa loss on the remainder of a project, it will be expensedimmediately in its entirety.

Licence revenues

The Group also sells licences for the use of softwaresystems. Licence revenues are normally recognised asrevenue in their entirety when the system is delivered.In the cases that involve adaptations or additional work,

the total contract amount including consideration forthe licences is recognised as revenue in at the samepace as deliveries, as described under ‘Productioncontracts’.

Other services

Consultancy, maintenance and service/support arerecognised as revenue incrementally as the service isperformed or on a straight-line basis during the periodin which the service is performed.

2.12 LeasesLeases in which a signicant portion of the risks and

rewards of ownership are retained by the lessor areclassied as operating leases. Payments made under

operating leases (net of any incentives received fromthe lessor) are charged to the income statement on astraight-line basis over the period of the lease.

2.13 Borrowing costsBorrowing costs are expensed in the same period asaccrued.

2.14 ProvisionsProvisions are recognised when the Group has anobligation as a result of past events, and when it isprobable that there will be a nancial settlement as a

result of this obligation and the amount can be meas-ured reliably. Generally speaking, provisions are basedon historical data and a weighting of possible outcomesagainst the probability they will occur. If the time valueis signicant, the provision will be the net present

value of the amount expected to be required to meetthe obligation.

2.15 ClassicationAssets related to normal operating cycles or that falldue within 12 months are classied as current assets.

Other assets are classied as non-current. Similarly,

liabilities related to normal operating cycles or that falldue within 12 months are classied as current liabili-ties. Other liabilities are classied as non-current.

2.16 SegmentsThe Group is organised as one operational segment,and reporting is done based on consolidated gures.

The Group does a split of sales based on product groupsand geography. Note 8 contains segmentreporting of the groups sales, which is prepared in accordance to IAS14 Segment reporting.

2.17 Net prot per shareThe Group presents ordinary earnings per share andearnings per share after dilution. Ordinary earnings pershare are calculated as the ratio between the net prot/

(loss) for the year that accrues to the ordinary share-

holders and the weighted average number of sharesoutstanding. The gure for diluted earnings per share

is the result that accrues to the ordinary shareholders,and the number of weighted average number of sharesoutstanding has been adjusted for all diluting eects

related to share options.

Note 3 - Financial risk management

Financial risk factors

The Group’s activities expose it to a variety of nancial

risks: currency risk, credit risk and interest rate risk. TheGroup has not used derivative nancial instruments

to hedge certain risk exposures. Risk management iscarried out under policies approved by the Board of Directors.

Currency risk

The Group operates internationally and is exposed toforeign exchange risk arising from various currency ex-posures. Foreign exchange risk arises when future com-mercial transactions or recognised assets or liabilitiesare denominated in a currency that is not the entity’sfunctional currency.

Credit riskThe Group has no signicant concentrations of credit

risk. It has policies in place to ensure that wholesalesales of products and services are made to customerswith an appropriate credit history.

Interest rate risk

As the Group has no signicant interest-bearing assets,

the Group’s income and operating cash ows are sub-stantially independent of changes in market interestrates. The Group’s interest rate risk arises fromlong-term loans. The loan is issued in Norway at





Annual Report 2009

variable rates, and exposes the Group to changes in themarket interest rate in Norway.

Note 5 - List of subsidiaries

The following subsidiaries are included in the consolidated nancial statements:

Company Country Main operations Cost of shares Ownership share Voting share

Navita Systems (US) Inc.

Navita Systems (Can) Inc.

Navita Consulting AS

Navita UK Ltd.

Navita Scotland Ltd.

USA

Canada

Norway

England

Scotland

Product sale/-deliveries


Consultants



6 039

5

2 719 501

2 286 370

20 711 855

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

Total: 25 723 770

Note 6 - Estimation uncertainty

In the process of applying the Group’s accounting policies in according to IFRS, management has made several

judgements and estimates. All estimates are assessed to the most probable outcome based on the managements bestknowledge. Changes in key assumptions may have signicant eect and may cause material adjustments to the

carrying amounts of assets and liabilities, equity and the net result.

The company’s most important accounting estimates is the following item:Write-down/reversal of goodwill and other intangible xed assets and of tangible xed assets.

The company tests annually whether goodwill or intangible assets has suered any impairment in accordance with IAS

36. The impairment tests are shown in note 13.

The company’s recognised goodwill and licence values are assessed annually with regard to impairment or a reversalof previous impairments.

Note 7 - Exchange rates

The following exchange rates were used in the consolidated nancial statements:

Currency 31.12.2009

American Dollar (USD)

Canadian Dollar (CAD)

British Pound (GBP)

5,7767

5,5026

9,3170

31.12.2008

6,9989

5,7744

10,1210

Average 2009

6,2816

5,5068

9,8050

Average 2008

5,6361

5,2741

10,3300


Note 4 - Changes in the Group’s structure

There were no changes in the Group’s structure in 2009 or 2008.




Annual Report 2009

Note 8 - Information by segment

Financial reporting in the group is based upon consolidated gures. Sales, based on type of product and allocation of

the customer, are specied.

Product segment:

The products are split into the following groups:

Sales 2009

Licenses

Support and maintenance

Customer projects

Consultancy

Other revenue

Total

12 269 245

26 814 239

35 064 300

195 450

15 234 478

89 577 712

2008

17 976 798

21 807 306

11 312 361

360 151

23 735 493

75 192 109

2009

12 360 295

34 365 240

28 648 020

4 064 650

21 208 923

100 647 128

2008

21 484 798

27 631 772

14 590 361

6 385 168

24 209 562

94 301 661

Parent Company Group

Geographical segment:

Sales are allocated based on the country in which customers are located. Sales are mainly in Noway, Sweden andNorth America.

Sales 2009

Europe

North America

Others

Internally

Total

64 504 328

11 375 980

1 815 488

11 881 916

89 577 712

2008

64 683 459

5 717 594

1 891 065

2 899 991

75 192 109

2009

84 974 288

13 750 524

1 922 316

0

100 647 128

2008

85 544 536

6 680 060

2 077 065

0

94 301 661






Annual Report 2009

Note 9 - Operating Equipment

Parent Company Operating equipment

Cost 1.1.2009

Additions

Disposals

Cost 31.12.2009

Accumulated depreciation 1.1.2009

Depreciation charge

Accumulated depreciation disposals


Net book amount 31.12 2009

Economic lifetime

1 331 286

0

0

1 331 286

1 008 577

206 612

0

1 215 189

116 097

3-5 years

Group Operating equipment

Cost 1.1.2009

Exhange dierences

Additions

Disposals

Cost 31.12.2009


Exchange dierences

Depreciation charge

Accumulated depreciation disposals


Net book amount 31.12.2009

Economic lifetime

3 202 445

-167 111119 945

-63 066

3 092 213

2 288 663

-99 474

543 954

-61 465

2 671 679

420 535

3-5 years





Annual Report 2009

Note 10 - Capitalised development cost

Parent Company

Cost 1.1.2009Additions

Disposals

Cost 31.12.2009


Depreciation charge



Economic lifetime

Acquisition of ETS

10 000 0000

0

10 000 000

2 416 667

1 000 000

3 416 667

6 583 333

10 years

Internally generated

31 400 620

5 000 793

0

36 401 413

4 225 248

4 337 864

8 563 112

27 838 301

5-10 years

Total

41 400 620

5 000 793

0

46 401 413

6 641 915

5 337 864

11 979 779

34 421 634

5-10 years

Group

Cost 1.1.2009

Additions

Disposals

Cost 31.12.2009


Depreciation charge



Economic lifetime

Acquisition of ETS

10 000 000

0

0

10 000 000

2 416 667

1 000 000

3 416 667

6 583 333

10 years

Internally generated

31 400 620

5 000 793

0

36 401 413

4 225 248

4 337 864

8 563 112

27 838 301

5-10 years

Total

41 400 620

5 000 793

0

46 401 413

6 641 915

5 337 864

11 979 779

34 421 634

5-10 years

Capitalised development costs are depreciated over the useful life of the products. Expected income on capitaliseddevelopment costs and book value are tested for impairment at the time of the balance sheet, and written-o if

necessary, see note 13.As of 31.12.2009 of NOK 34.421.634 of the total capitalised development costs regard products that are

commercialised and are available on the market (NOK 34.758.705 in 2008).

Note 11 - Goodwill

Group

Cost 1.1.2009

AdditionsDisposals

Cost 31.12.2009


Depreciation charge



Navita Cons. AS

1 898 346

00

1 898 346

1 898 346

0

1 898 346

0

Navita UK Ltd.

2 069 571

00

2 069 571

0

0

0

2 069 571


15 573 010

00

15 573 010

0

0

0

15 573 010

Total

19 540 927

00

19 540 927

1 898 346

0

1 898 346

17 642 581

Goodwill is subject to depreciation, but is tested for impairment at least one time during the year, see note 13.





Annual Report 2009

Note 12 - Depreciation

Parent Company

Operating equipment (see note 9)Capitalized development cost (see note 10)

Total

2009

206 613

5 337 864

5 544 477

2008

331 5854 374 030

4 705 615

Group

Operating equipment (see note 9)

Capitalized development cost (see note 10)

Goodwill (see note 11)

Total

2009

543 954

5 337 864

0

5 881 818

2008

627 247

4 374 030

0

5 001 277

Recognised goodwill in the Navita Group as of 31.12.2009 amounted to MNOK 17,64 (MNOK 17,64 in 2008). TheGoodwill originated mainly from the acquisition of Navita Scotland Ltd (former Advantage Energy Solutions Ltd) inEdinburgh, Scotland which was completed in 2007.Recognised capitalised development costs in the Group as of 31.12.2008 amounted to MNOK 34,42 (MNOK 34,76 in

2008). These are mainly modules to POMAX and new technical solutions regarding POMAX.

The Group as a whole is considered to be the only cash generating unit (CGU) since there is no possibility to isolate andmeasure the cash ow for any of the units or the products alone.

The impairment test is carried out by the Group’s accountanting department. The valuation was done in December2009. The recoverable amount is set at the estimated value in use. The value in use is estimated as the net presentvalue of anticipated cash ows before tax, using a discount rate taking into account the duration of the cash ows and

the expected risk. Projected cash ows have been determined on nancial budget approved by the management of the

Group. The cash ows are determined based upon the nancial budget for 2010.

The following assumptions are used in the impairment tests:

• A continuing growth of the Group’s market share in the total market of 12% annually for the rst 5 years, is

expected, and thereafter a reduction in year 6, because some products are not expected to have an economic

lifetime linger than 5 years. Thereafter, revenue growth continues at 12% in year 7 to year 10 of the expectedcash ows.

• An improvement of the EBITDA margin of 10% is expected, and that EBITDA thereafter will remain stable.• The discount rate used for calculating the net present value of cash ows is 20,0%. This is based on a risk free rate

of 5,0% and a risk premium of 15%. The risk premium is based on uncertainty regarding the expected growth.

Sensitivity at changes in the key assumptions

As of 31.12.2008 goodwill and capitalised development costs in use amounted to MNOK 67,67, compared to a total

booked value of MNOK 52,06. An analysis of sensitivity based on reasonable possible changes in the key assumptions

regarding growth and margins shows the following reduction of value (amounts in MNOK) with following write-downof goodwill and capitalised development cost (amounts in MNOK):

Note 13 - Impairment test of goodwill and intangible assets

Growth: EBITDA Value in use Write down

11 %

10 %

12 %

12 %

11 %

10 %

10 %

10 %

9 %

8 %

9 %

8 %

65,56

63,54

61,93

56,19

60,03

52,89

N/A

N/A

N/A

N/A

N/A

N/A





Annual Report 2009

Trade receivables

In 2009, NOK 300.000 as provisions for bad debt for the Parent Company and the Group (NOK 300.000 in 2008) werebooked. Trade receivables as of 31.12.2009 and 31.12.2008 were booked at fair value, less provisions for bad debt,with NOK 11.255.570 and NOK 9.026.820 for the Parent Company and NOK 14.276.361 and NOK 11.767.871 for the

Group.Booked losses on trade receivables was NOK 0 in 2009 and NOK 366.692 in 2008 in the parent company. In the

Group booked losses on trade receivebles was NOK 0 in 2009 and NOK 1.336.297 in 2008.

Note 14 - Trade receivables and other short term receivables

Parent Company

Accrued income

Group contribution

Other Group receivablesPre paid costs

Other

Total

2009

4 035 198

80 161

984 298

757 594

44 448

5 901 699

2008

10 561 045

515 335

156 369

13 865

362 116

11 608 730

Group

2009

5 877 020

0

01 723 041

395 821

7 995 882

2008

12 573 039

0

01 054 223

445 963

14 073 225

Other short term receivables

Note 15 - Cash and cash equivalents

This note details the proportion of cash in the Company which is related to its tax account. This money is Companypayroll tax and is unavailable to fund Company operations.

Parent Company:

As of 31.12.2009 NOK 1.186.369 of the total cash and cash equivalents was tied to tax accounts related to employee

withholding (NOK 1.131.008 in 2008). Liabilities to corresponding tax accounts as of 31.12.2009 was NOK 1.131.715(NOK 1.073.851 in 2008). In 2009 and 2008 there are no other limitations on the cash and cash equivalents thanemployee withholding tax.

Group:

As of 31.12.2009 NOK 1.330.839 of the total cash and cash equivalents was tied to tax accounts related to employeewithholding (NOK 1.703.587 in 2008). Liabilities to corresponding tax accounts as of 31.12.2009 was NOK 1.271.940

(NOK 1.570.872 in 2008). In 2009 and 2008 there are no other limitations on the cash and cash equivalents thanemployee withholding tax.

Note 16 - Share capital and Shareholders

Total share capital of the company as of 31.12.09 was NOK 1.441.192 divided among 962.307 A-shares with a nominal

amount of NOK 1,00 - 343.814 preferred B-shares with a nominal amount of NOK 1,00 and 135.071 B-shares with a

nominal amount of NOK 1,00.

When voting at the shareholders annual meeting one A-share counts as two B-shares.

The preferred B-shares have priority over the other shares for the purpose of receiving dividends from liquidation withan amount of each preferred B-share equal to the subscription amount for the preferred B-shares in case of a liquida-tion of the Company.





Annual Report 2009

Changes in share capital and share premium fund

A-shares

Issued A-shares as of 31.12.2008

Issued A-shares as of 31.12.2009

Preferred B-shares

Issued preferred B-shares as of 31.12.2008

Issued preferred B-shares as of 31.12.2009

Ordinary B-shares

Issued ordinary B-shares as of 31.12.2008

Issued ordinary B-shares as of 31.12.2009

Total issued shares as of 31.12.2009

Numbers of shares

962 307

962 307

343 814

343 814

135 071

135 071

1 441 192

Share capital

962 307

962 307

343 814

343 814

135 071

135 071

1 441 192

Share premium fund

36 444 705

36 444 705

42 662 487

42 662 487

1 020 420

1 020 42080 127 612

Figures for result per share and fully diluted result per share can be found in note 27.

Shareholders as of 31.12.2009 A-shares Preferred B-shares Ordinary B-shares Total Ownership interest

Statoil Venture AS

Viking Venture II AS

Ecapital AS*

Jens Klefstad

Frode Teigen

Arnstein Løvik

Jo Morten Sletner

Murray Pope

Michael Dineen

Ørjan Thoren

Mattias Palm

Scott Hestenes

Tom Roberg

Yngvar Seteklev

Terje Engen

Glenn Cooper

Jostein Andreassen

Gareth Aynge

Pål Økern

Ian Pope

Total 20 largest shareholders

Other shareholders

Total number of shares

310 806

310 806

310 806

0

0

0

0

12 979

12 978

0

0

0

0

0

0

0

0

0

0

3 932

962 307

0

962 307

151 858

151 822

22 181

239

2 998

962

0

0

0

396

385

1 924

0

0

0

0

115

200

3 982

0

337 062

6 752

343 814

0

0

0

18 277

14 894

14 000

13 298

0

0

10 639

10 639

7 978

7 978

7 092

6 638

6 012

5 638

5 418

0

0

128 501

6 570

135 071

462 664

462 628

332 987

18 516

17 892

14 962

13 298

12 979

12 978

11 035

11 024

9 902

7 978

7 092

6 638

6 012

5 753

5 618

3 982

3 932

1 427 870

13 322

1 441 192

32,10%

32,10%

23,10%

1,28%

1,24%

1,04%

0,92%

0,90%

0,90%

0,77%

0,76%

0,69%

0,55%

0,49%

0,46%

0,42%

0,40%

0,39%

0,28%

0,27%

99,08%

0,92%

100,00%

* CEO and member of the board Knut H. Johansen owns 100% of Ecapital AS.Member of the board Erik Åsberg owns 142 preferred B-shares.





Annual Report 2009

Note 17 - Other current liabilities

Parent Company

Pre paid income

Accrued vacation salary

Intercompany loan

Accrued expenses

Accrued salary

Accrued interest

Provisions for guarantees

Other short term debt

Total

2009

4 648 185

2 877 233

2 879 667

955 460

1 776 006

137 367

400 000

0

13 673 918

2008

2 133 985

3 071 110

2 042 160

1 159 623

2 202 041

295 235

400 000

76 746

11 380 900

Group

2009

8 757 615

3 545 438

0

2 302 878

2 455 556

137 367

400 000

40 031

17 638 885

2008

4 361 385

3 988 120

0

1 547 332

4 315 791

295 235

400 000

43 317

14 951 180

Other current liabilities

Note 18 - Other long-term liabilities

Parent Company and Group:

Other long-term liabilities as of 31.12.09 consists of three loans from Innovasjon Norge. One new loan was raised in2008 of NOK 3.360.000, but no new loans were raised in 2009. Total debt as of 31.12.2009 was NOK 4.716.667

(NOK 7.443.333 in 2008). The loan has a variable interest rate. There will be two installments paid each year. Total

payments in 2009 amounted to NOK 2.726.667 (NOK 1.750.000 in 2008). All of the loans will be fully repaid in 2012.

See note 29 regarding security.

Note 19 - Taxes

Income taxes

Tax payable

Changes in deferred tax

Total income taxes

Reconciliation from nominal to actual tax rate

Prot before taxes

Estimated income tax at nominal tax rate (28%)

Tax eect on following items:

Costs regarding raise of capital booked against equity

Changes in o balance deferred income tax assets

Non-deductable costs

Total income taxes

Eective tax rate

Parent Company:

2009 2008

0

0

0

- 1 982 546

- 555 113

0

500 403

54 710

0

0,0%

0

3 316 201

3 316 201

-16 020 552

-4 485 755

0

7 746 507

55 448

3 316 201

-20,7%





Annual Report 2009

Specication of tax eect of temporary

dierences and losses to be carried forward:

2009

Operating equipment

Receivables

Provisions

Guarantees

Loss to be carried forward

Total

Non-capitalized deferred tax assets

Net deferred income tax assets/liablity

Asset

84 790

84 000

49 000

112 000

8 023 795

8 353 584

8 353 584

0

Liability

0

0

0

0

0

0

0

0

2008

Asset

66 881

84 000

0

112 000

7 590 300

7 853 181

7 853 181

0

Liability

0

0

0

0

0

0

0

0

The Parent Company had losses to be carried forward of NOK 28.656.410 as of 31.12.2009 (NOK 27.108.213 in 2008).

Income taxes

Tax payable

Changes in deferred tax

Total income taxes

Reconciliation from nominal to actual tax rate

Prot before taxes

Estimated income tax at nominal tax rate (28%)

Tax eect on following items:

Changes in o balance deferred income tax assets

Dierences in tax rate

Non-deductable costs

Total income taxes

Eective tax rate

Group:

2009 2008

641 747

49 620

691 367

416 281

116 559

500 403

30 185

44 220

691 367

166,1%

878 119

3 317 491

4 195 610

-12 802 699

-3 584 756

7 746 507

-22 579

56 437

4 195 610

-84,2%

2009

Operating equipment

ReceivablesProvisions

Guarantees

Loss to be carried forward

Total

Non-capitalized deferred tax assets

Net deferred income tax assets/liablity

Asset

175 396

84 00065 800

112 000

8 023 795

8 460 991

8 353 584

107 406

Liability

35 735

00

0

0

35 735

35 735

35 735

2008

Asset

217 238

84 0000

112 000

7 590 300

8 003 538

7 853 181

150 357

Liability

11 6800

00

0

0

11 680

11 680

The Group had losses to be carried forward of NOK 28.656.410 as of 31.12.2009 (NOK 30.935.062 in 2008).

Specication of tax eect of temporarily

dierences and loss to be carry forward:





Annual Report 2009

Note 20 - Pension obligations

Note 21 - Payroll expenses

Parent Company

Salaries

Employer’s contribution

Options to employees

Pension cost, see note 20

Other payroll cost

Total

Average number of man-year

2009

22 067 115

3 584 493

40 843

1 585 235

1 366 454

28 644 140

42

2008

22 865 202

3 819 498

5 975

-3 229 996

3 756 068

27 216 747

43

Group

2009

47 950 220

6 438 138

40 843

2 896 226

1 228 823

58 554 250

90

2008

50 097 068

6 087 879

5 975

-2 369 897

4 337 355

58 158 380

92

Navita Systems AS changed from a dened benet pension plan to a dened contribution plan in 2008. The change

resulted in a cost reduction of MNOK 5,3 because of a reversal of the recognised pension obligation. This amount hasreduced the personnel expenses of the Parent Company and in the Group in 2008. In 2009 the employees in NavitaSystems AS and the subsidiaries had a dened contribution plan. As of 31.12.2009, 43 employees were included in the

pension plan in the Parent Company (44 in 2008) and in total there were 85 employees in the Group pension plan in

(75 in 2008). The pension plan is administrated by an insurance company. Total payments under this scheme in 2009amounted to NOK 2.896.226 (NOK 2.951.749 in 2008).

Note 22 - Other operating expenses

Parent Company

Premises

Oce cost

IT services

Lease of ICT

Consultants

Accounting, audit, lawyers

Travelling

Sales and marketing

Operating cost USA and Canada

Other costs

Total

2009

3 222 143

1 688 051

499 642

3 395 001

28 285 665

3 572 596

3 200 495

1 570 915

7 201 236

338 808

52 974 552

2008

3 014 621

2 036 926

1 374 579

5 067 140

25 339 503

3 185 041

6 854 640

3 081 958

8 257 078

1 504 750

59 716 236

Group

2009

6 141 229

2 160 932

598 412

3 395 001

7 206 477

3 943 342

4 596 213

1 881 576

0

734 925

30 658 107

2008

6 199 264

2 928 272

1 985 536

5 067 140

7 816 507

3 523 428

7 757 411

3 999 175

0

4 293 207

43 569 941





Annual Report 2009

Note 23 - Costs regarding research and development

The Group invested signicantly in research and development in 2009 and 2008, whereof MNOK 5,0 and MNOK 5,0

have been recognised as capitalised development costs. Research and development costs consist mainly of personnel expenses, but also some purchased services from external companies/consultants.

Note 24 - Options

Existing options

Options as of 1.1

Issued during the year

Expired during the year

Exercised during the year

Total options as of 31.12

Whereof accrued

2009 2008

164 500

0

0

0

164 500164 500

545 022

0

215 393

165 129

164 500

162 791

The options relate to three dierent programmes:

1) Norsk Hydro Produksjon AS has 115.000 options with an exercise price of NOK 1,00 per share. The options may besubscribed in the period between 01.01.2009 and 13.12.2011.

2) Some employees have a total of 20.000 options with an exercise price of NOK 2,00 per share. Of the total, 20.000options are accrued as of 31.12.2009. The options may be subscribed in the period between 01.01 and 01.03 eachyear when they are accrued, but not later than 01.03.2011.

3) Some employees have a total of 29.500 options with an exercise price of NOK 57,69 per share. Of the total, 29.500

options are accrued as of 31.12.2009. The options may be subscribed in the period between 01.01 and 01.03 eachyear when they are accrued, but not later than 01.03.2011.

Fair value of the issued options in the period was calculated using the Black-Scholes option pricing model. The mostimportant inputs were the last known price of the share of NOK 57,69 (at the time of issuing the options agreement),

risk free interest of 4,14%, life-time of the options (see above) and volatility at 40%.

Fair value of options to employees is booked as a payroll cost in the earning period of the options. Booked cost of op-tions to employees in 2009 amounts to NOK 40.843 (NOK 5.977 in 2008).

Note 25 - Future lease obligations

The Parent Company and the Group has a future lease obligation related to oce rental, rental of ICT services and rent-

al of oce equipment. The rent is index regulated each year. Annual rental costs in 2009 amounted to NOK 6.185.883in the Parent Company (NOK 8.158.850 in 2008) and NOK 12.207.893 for the Group (NOK 11.389.786 in 2008).

Future accumulated minimum payments regarding the lease obligations:

Parent Company

Mature within one year

Mature between one and ve years

Mature later than 5 years

2009

5 875 483

9 253 420

0

2008

7 530 194

12 572 648

0

Group

2009

7 959 373

11 745 618

0

2008

9 701 059

12 572 648

0





Annual Report 2009

Note 26 - Fees and remuneration

The CEO does not have any special agreement regarding compensation if he is required to resign.

Loan to CEO, members of the board and shareholders

There were no loans to the CEO, members of the board or shareholders as of 31.12.2009.

Auditor

Booked auditors fee in 2009 amount to (exclusive IVA):

Salaries and other fees to:

Salary

Other benets

CEO Board

1 702 255

11 991

150 000

0

Mandatory audits

Other assurance services

Tax consultancy

Services other than auditing

Total fees


195 00040 000

5 000

60 000

300 000

371 772

43 500

8 000

60 500

483 772

Note 27 - Net prot per share

Net prot per share is calculated by dividing the net prot before prospective minority interests on the average

number of issued shares during the year.

Net prot

Average number of issued shares

Net prot per share

Net comprehensive income

Average number of issued shares

Net comprehensive income per share

-275 085

1 441 192

-0,19

- 1 195 007

1 441 192

-0,83

-16 998 309

1 304 508

-13,03

-17 207 907

1 304 508

-13,19

2009 2008

Fully diluted net prot per share is calculated by dividing the net prot before prospective minority interests on the

average number of issued shares and issued options during the year.

Net prot

Average number of issued shares and issued options

Fully diluted net prot per share

Net comprehensive income

Average number of issued shares and issued options

Net comprehensive income per share

-275 085

1 605 692

-0,17

-1 195 007

1 605 962

-0,74

-16 998 309

1 699 806

-10,00

-17 207 907

1 304 508

-13,19

2009 2008





Annual Report 2009

Note 28 - Related-party transactions

All related-party transactions are based on normal market conditions.

Parent Company:

In 2009 the Parent Company bought consultancy services and other services from its subsidiaries amounting toNOK 29.341.384 (NOK 21.433.268 in 2008). The amount is recognised as other operating expenses.

In 2009 the Parent Company sold services to its subsidiaries amounting to NOK 11.881.916 (NOK 1.471.140 in 2008).

The amount is recognised as sales.In 2009 the Parent Company recognised an income of NOK 80.161 regarding group contribution from subsidiaries

(NOK 515.355 in 2008). The amount is recognised as income from investments in Group companies.

The Parent Company has the following accounts regarding other companies in the Group:

Navita Canada IncNavita US Inc

Navita UK Ltd

Navita Scotland Ltd


Total

670 3400

267 757

496 703

463 225

1 898 025

1 457 0930

316 768

0

171 599

1 945 460

2009 2008Trade receivables


Navita UK Ltd

Total

80 161

152 798

232 959

515 335

152 798

668 133

2009 2008Other short term receivables


Navita US Inc

Navita UK Ltd

Navita Scotland Ltd

Total

-3 905 113

-443 017

-195 003

-3 104 302

-4 543 133

-3 256 744

-325 742

-1 424 013

-1 757 366

-5 006 499

2009 2008Trade Payables

Navita Scotland Ltd

Total

-2 879 667

-2 879 667

-2 042 160

-2 042 160

2009 2008Other current liability

Note 29 - Secured long-term debt

Long term liability

The long-term liabilities of the Parent Company and the Group have security in operating assets. The nominal value of the loan is NOK 9.860.000, and includes operating equipment, inventories and receivables. Booked value of the

liabilities as of 31.12.2009 was NOK 4.716.667 (NOK 7.443.333 in 2008). Booked value of the assets included in the

mortgage as of 31.12.2009 was NOK 17.173.366 (NOK 20.985.386 in 2008)

Overdraft facility

In addition the Parent Company and the Group has placed the trade receivables and operating assets as security for theoverdraft facility. The nominal value of the loan is NOK 20.000.000. As of 31.12.2009 and 31.12.2008 the overdraftfacilities had not been used. The total limit of the overdraft facility as of 31.12.2009 was NOK 7.000.000.





Annual Report 2009

Auditor’s report

34 - AUDITOR’S REPORT




Annual Report 2009

Board of Director’s reportCommercial Focus NAVITA Systems AS and its wholly owned subsidiariesdevelop and deliver software solutions to the global

energy and related commodities trading community.NAVITA is the Nordic market leader in energy tradingand software solutions, and is rapidly expanding itsmarket share internationally. The company’sheadquarters are in Halden, Norway, and its ve wholly-

owned subsidiaries are situated in London, Edinburgh,California, Toronto and Oslo.

Navita aims to become a leading international industryplayer. In 2009, Navita continued its strong focus onsoftware development, organisational developmentand internationalisation. Among other things, thecompany expanded its product portfolio with broad anddeep functionality coverage for nancial and physical

trading, risk management and logistics for a variety of commodities.

The Board is satised with the Company’s development

in 2009. Despite the still visible eects of the

nancial crisis, the Company succeeded at expanding

by attracting new and large customers in both Europeand North America. The Board is particularly pleasedwith the protability of the company, which signicant-ly improved compared with 2008.

An important success factor for NAVITA is theCompany’s well functioning organisation supported byhighly educated personnel with solid industryexpertise. The number of employees in the Groupdecreased from 96 at the start of 2009 to 93 by year’s

end.

Going ConcernThe annual report and accounts have been preparedunder the going concern assumption. The Boardconrms that, in accordance with the Accounting Act §

3-3a and IAS 1 § 23, the conditions for continued

operation are satised. This is based on the Company’s

good nancial position, positive sales growth in 2009, a

solid improvement in 2009 over 2008, operatingforecasts for 2010, as well as the Company’s strategyand long-term prospects.

Comments related to Financial Statements Eective as of scal year 2006, NAVITA has prepared

its nancial statements in accordance with IFRS. Since

2006, the Company has also prepared consolidated

nancial statements.

The positive revenue growth of recent years

continued in 2009 with total income rising to MNOK100.6 in 2009 compared to MNOK 94.3 in 2008. The

corresponding gures for the Parent company were

MNOK 89.6 (2009) as against MNOK 75.2 in 2008.

Prot before tax for the Group was MNOK 0.4 (MNOK

-12.8) and for the Parent company MNOK -2.0 (MNOK-16.0). In 2009, NAVITA also invested substantial sums

in its operations related to organisational developmentand product development in order to managecontinued revenue growth.

In the autumn of 2008, NAVITA completed a

comprehensive cost reduction programme whichresulted in savings of MNOK 10.0 in 2009. Total productdevelopment investment in 2009 amounted to MNOK46.4 of which activated product development for 2009

was MNOK 5.0. The net value of activated productdevelopment after depreciation was MNOK 34.4 at

the end of 2009. 2009 product development primarilyrelated to new technical platforms, automation andintegration between POMAX modules, and newfunctionality for new market segments. The Companyreviews product development’s market potential andeconomic lifetime continuously. Annual impairment

tests of activated development costs based onexpected future cash ows are conducted. Additionally,

the ongoing research and development in the Group isexpensed as incurred.

Total cash ow from the Group’s operating activities in

2009 amounted to MNOK 5.9. Operating prot for the

Group was MNOK 0.4. The dierence is mainly due to

an increase in capital invested linked to an increase inaccounts receivables and reductions in accountspayable (total MNOK 7.3 million) and taxes payable(MNOK 0.8). Depreciation (totalling MNOK 5.9) andchanges in other accruals (a total of 7.7 million) had theopposite eect.

The Group’s liquidity balance was MNOK 9.1 as of 31/12-09 as against MNOK 11.3 as of 31/12-08.The Group’s ability to self-nance investments is

considered to be satisfactory.The Group’s current liabilities amounted to 84.4% of

total debt in the Group at the end of 2009 comparedwith 78.8% per 31/12-08. The increase is due torepayment of long-term debt. The Group’s nancial

position is satisfactory, and the Group can, as of

35 - BOARD OF DIRECTOR’S REPORT




Annual Report 2009

31/12-09, repay short-term debt using its most liquidassets.

Total assets at the end of the year were MNOK 84.8compared with MNOK 90.6 the year before. The Group’s

equity ratio at 31/12-09 was 64.0% compared with

61.2% at 31/12-08, and the equity portion of the

Parent company was 61.4% as of 31/12-09 compared

with 60.5% per 31/12-08.

The Board considers NAVITA’S nancial statements for

2009 to provide an accurate and concise account of itsassets and liabilities, nancial position and results.

Financial Risk Overall objectives and strategyThe Company is exposed to nancial risks in dierent

areas, particularly foreign exchange risk. Withsubsidiaries in the countries which represent the mostimportant currencies the Company trades in, theCompany primarily seeks to alleviate foreign exchangerisks through its activities.

The company has so far not seen it necessary to activelyuse nancial instruments to reduce nancial risk.

Market Risk

As some of the Company’s revenues relate to revenuesin foreign currencies, the company is exposed toexchange rate risk. The largest currency exposuresrelate to SEK, EURO and British Pounds. The Group doeshave a sizeable cost base in British Pounds, reducingthe relevant currency exposure against this currency.The group has not entered into derivative agreementsto reduce the exchange rate risk and the related marketrisk.

The Company is also exposed to changes in interestrates, as the Company has debts with oating

interest rates. Interest-bearing long term debt, however,constitutes only 5.6% of the total capital. This risk is

evaluated as low.

Credit risk The risk of debtors not having the nancial capacity to

meet their obligations is considered to beincreasing. Historically, there have been virtually nolosses on receivables. The Group has not entered intoo-setting agreements or other derivative agreements

to reduce credit risks. Eorts have been initiated by the

Group to increase focus on reducing NAVITA’s

counter-party risk exposure as a result of the ongoingnancial crisis.

Liquidity Risk The Group’s liquidity is good, and no action is plannedto reduce liquidity risk. The credit terms given relatedto sales will remain unchanged.

Working environment and employees Sickness absence in the Group for 2009 was 2.3%versus 1.8% in 2008. Sickness absence in 2009 wassomewhat higher and long-term than in 2008.

No accidents, injuries or material damages occurred in2009. The working environment is considered good,

and co-operation with employees has beenconstructive and conducive to the eective

operation of NAVITA. There is ongoing work to developand coordinate dierent welfare opportunities in the

Group. Currently, the Board sees no need for furtheractions.

The Board would like to thank all employees for theirresult-oriented focus and hard work in 2009.

Equal opportunities

The Company strives to be an equal opportunityemployer. The Parent company has 51 employees of which 14 are women and 37 are men. The group has a

total of 93 employees, 26 women and 67 men. As of 31

December 2009, the Board consisted of ve men. After

reviewing the number of employees and job types, theBoard decided that it is not necessary to take specialmeasures to promote gender equality.

DiscriminationThe Discrimination Act promotes equality, ensuresequal opportunities and rights and preventsdiscrimination based on ethnicity, national origin,ancestry, colour, language, religion or belief. The Groupworks systematically to promote the Act’s purposeswithin the Company. The activities include recruitment,wages and working conditions, promotion,development and protection against harassment.

The Group aims to provide a workplace where there isno discrimination based on disabilities. The Group isworking actively and purposefully in order to designand order the necessary physical conditions to ensure





Annual Report 2009

that the Company’s various employees haveunimpeded access. For employees or job seekers withdisabilities, the Company organises the workplace and

working tasks on an individual basis.

External environment Navita does not operate any activities that directlypollute the environment. NAVITA’s environmentalimpact is related to energy consumption and travel. TheGroup has calculated CO2 emissions related to itsbusiness activities and purchases quotas inaccordance with these calculations to render the GroupCO2 neutral.

Future development NAVITA achieved sales growth in all product areas andimproved its competitiveness in 2009. Orders-on-handcontinued to strengthen throughout the year and the

increase in long-term contracts was good. The Groupenters 2010 with a strong prospect list and a solidbase of power of customers currently unaected by

the nancial crisis. The Board anticipates satisfactory

protability in 2010.

Dividends to shareholdersTransferred from other equityTotal allocations

0,-- 1.982.547

- 1.982.547

NOKNOKNOK

The Company’s free equity as of 31/12-09 was kr. 0, -.

Net prot and allocation for the parent company The Board of NAVITA Systems AS proposes that the loss

for 2009 be allocated as follows.

Halden, 3 March 2010 - Navita Systems AS

Knut H. Johansen

CEO / Board Member

Per Bakseter

Chairman

Harald Jeremiassen

Board Member

Erik Åsberg

Employee Representative

Sigurd Moe Paulsen

Board Member




Annual Report 2009

head ofce

Navita Systems AS

P.O Box 154, NO-1751 Halden, NorwayVisiting address: Storgata 7, Halden.

Tel: +47 69 70 96 00 Fax: +47 69 70 96 01

NAVITA

officeseuropean branch ofces

Navita Systems AS

Martin Lingesvei 17, NO-1367 Snarøya, Oslo, Norway

Tel: +47 69 70 96 00 Fax: +47 67 82 72 41

Navita Systems AS

P.O. Box 2077, SE-103 12 Stockholm, Sweden

Visiting address: Kornhamnstorg 53, Stockholm

Tel: +46 8 566 300 60 Fax: +46 8 566 300 13

Navita UK Ltd.

Holland House 1-4 Bury Street, London, EC3A 5AW, UK

Tel: +44 207 469 2534 Fax: +44 870 922 3115


83 Princes Street, Edinburgh, EH2 2ER, Scotland

Tel: +44 131 226 5566 Fax: +44 131 247 7471

north american branch ofces

Navita Systems (US) Inc.

199 S. Los Robles Ave, Ste 610 Pasadena, CA 91101, USA

Tel: +1 626 535 9888 Fax: +1 626 229 9868

Navita Systems (Can) Inc.

161 Bay St, Suite 2700, Box 508 Toronto

ON - M5J 2S1, Canada

Tel: +1 416 572 2018 Fax: +1 416 572 2201

navita annual report 2009

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