questback annual review 2011
TRANSCRIPT
Annual review 2011
W W W . Q U E S T B A C K . C O M
3ANNUAL REVIEW 2011
QuestBack is a global leader of enterprise feedback man-agement (EFM), customer experience management (CEM), social CRM and market research for businesses of any size. Through our cost effective Software as a Service (SaaS) platform, we offer an end to end solution for organizations to gain real time insight by capturing feedback, engaging in dialogues and tracking behavior of customers, employees and partners, in order to drive better business decisions and strengthen relations.
We help enterprises and agencies do more with less – to en-gage audiences for reliable, actionable insight that have a direct benefit on the company bottom line. QuestBack services more than 5,000 customers worldwide through all online feedback channels. Founded in 2000, QuestBack is headquartered in Oslo, Norway with 19 offices worldwide. Over the past few years QuestBack`s achievements and technology have been recognized and awarded numerous times; Deloitte Technology Fast 500 EMEA, Red Herring 100 Global, and Nordic TechTour. 2011 also includes listing in Gartner’s Magic Quadrant for Social CRM and Forrester’s EFM Wave report. (Market Insights Platform providers)
QuestBack in brief
» Without continual growth and progress, such words as improvement, achievement, and success have no meaning.
«BENJAMIN FRANKLIN , 1706-1790
2011
HISTORY TIMELINE
1999: Newspaper article in Financial Times spurs the idea of QuestBack: to create a two-way, internet based service for actionable feedback management (Ask & Act), basing it on a business model that later has become known as Software as a Service (SaaS).
Jan 2000: QuestBack is founded. One employee at the Oslo office.
Aug 2000: Beta-version of QuestBack’s 1.0 version of our feedback management software. Five pilot customers on board.
Nov 2001: Profitable after successful commercialization of product in the Norwegian market.
2004: Taking the success abroad: establishing QuestBack in Sweden.
2005: Gartner Group names our industry “Enterprise Feedback Management” (EFM), defining it exactly as QuestBack did it back in 2000.
2005-2007: European leap: Establishing QuestBack in 11 additional countries across Western Europe.
2008: Reaching 100 MNOK in revenues.
Sept 2008: Acquiring Norwegian competitor Refleks, as well as Easyresearch – the Swedish market leader within EFM
2009: Global financial crisis – yet no increase in customer churn amongst QuestBack customers throughout the recession – demonstrating the strong value created for our customers.
Sep 2010: Acquiring Digium – the Finnish market leader within EFM. Thus making QuestBack the undisputed market leader within EFM in the European market.
2011: Acquiring Globalpark – the German market leader within EFM. Reinforcing QuestBack’s global position as well as strengthening the product offering in Social CRM and market research.
CONTENT
HISTORY TIMELINE · · · · · · · · · · · · · · · · · · · · · · · · · · · · 3
QUESTBACK IN BRIEF · · · · · · · · · · · · · · · · · · · · · · · · · · 3
CEO’S SUMMARY · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 4
ORGANIZATIONAL DEVELOPMENT & INTEGRATION · · · · 5
THE MANAGEMENT · · · · · · · · · · · · · · · · · · · · · · · · · · · · 6
OUR VALUE PROPOSITION · · · · · · · · · · · · · · · · · · · · · · 7
OUR VALUES · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 8
SOLUTIONS · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 10
OUR SPACE · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 12
OUR OFFERING · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 13
OUR PLATFORM · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 14
UNIQUE POSSIBILITIES · · · · · · · · · · · · · · · · · · · · · · · · 15
CASE STUDY “BOSCH POWER TOOLS” · · · · · · · · · · · · 16
CASE STUDY “SWISS” · · · · · · · · · · · · · · · · · · · · · · · · · 17
BOARD OF DIRECTORS’ REPORT · · · · · · · · · · · · · · · · 18
CONSOLIDATED STATEMENT OF PROFIT AND LOSS · · 20
CONSOLIDATED CASH FLOW STATEMENT · · · · · · · · · 21
CONSOLIDATED BALANCE SHEET · · · · · · · · · · · · · · · 22
WHERE YOU CAN REACH US · · · · · · · · · · · · · · · · · · · 24
QUESTBACK IN BRIEF
5ANNUAL REVIEW 2011
ORGANIZATIONAL DEVELOPMENT & INTEGRATION
QuestBack: stronger with GlobalparkIn August 2011 QuestBack acquired Globalpark AG and Globalpark, Inc. As a result of the acquisition, we have signifi-cantly strengthened our market presence in the German speak-ing part of Europe, as well as in the UK and the US. Geographi-cal expansion alone, was however not the main driver behind the acquisition; but rather the strong and innovative product portfolio and the strong R&D focus of the Globalpark organiza-tion. The product offering fully complements that of the legacy QuestBack organization, which now can boast a strong foot-hold in the social CRM and high-end EFM spaces, as well as within the market research vertical. The rumor in the market that “everything is possible” with the Globalpark EFS platform has been proven to be true. With the sales and marketing acumen and the mass market solutions of the QuestBack organization in addition, we are now in a position to lead the market develop-ment. QuestBack is now a top five global vendor in our space, and we can target and serve customers with a wide variety of needs at all levels of the organization.
It is a reflection and recognition of the R&D focus of the former Globalpark organization that the CTO of the company, Oliver Trabert, was named Group CTO and joined the existing Group Management Team.
From 2012, all Globalpark companies will change their names to QuestBack, and already the products in the former Global-park portfolio are offered and successfully sold in the global QuestBack organization.
Current focus is on integrating the whole product on a joint platform, so that all our current 5,000 customers can benefit immediately from new functionality being developed, as well as make use of the wider service offering which already exists in the combined product portfolio.
Current and new customers can rest assured that QuestBack is the best vendor in this space to help them grow their own business; address their business problems, and create superior experiences!
2011 was a landmark year for QuestBack. With the acquisition of Globalpark in August, we solidified our position as the clear mar-ket leader in Europe and became a top five vendor globally. We are firmly on course to become the global leader in our space. The
acquisition also strengthened our product offering extensively, es-pecially within Social CRM and market research. Being recognized in both Gartner`s Magic Quadrant for Social CRM and Forrester’s Wave for EFM are confirmations that QuestBack is leading the way, and underpins our unique ability to bridge the gap between tradi-tional CRM and social media with our Social Engagement Platform. Our complete product offering is now nothing short of impressive and a real game-changer for companies trying to navigate in this “Age of the Customer.”
Social CRM (SCRM), Enterprise Feedback Management (EFM), and Voice of the Customer (VoC) initiatives are gaining momen-tum in all of our markets. The underlying force that drives this development is the experience economy, where people are now clearly placing more and more emphasis on their experience as a customer or consumer. In short: customers expect more, they switch more, and tell more. Consequently, businesses focus heavily on customer experience management, where our wide SCRM offering will be a cornerstone of any serious initiative. This is not about surveys and reports, but about the ability to capture and manage timely and relevant feedback, as well as integrating feedback with core customer systems and business processes across all channels. QuestBack enables organizations to gain actionable insight and build stronger relationships with custom-ers and employees, through our leading feedback and social engagment solutions. This is our core value proposition to our customers. As we enter 2012, the 255 employees in QuestBack all work to exceed our customer’s expectations in this area. We also have exciting new products to be launched in the market this year, and we are very well positioned to realize our vision of creating the winners of the experience economy.
Ivar KroghrudCEO, QuestBack AS
CEO’S SUMMARY
Clear market leader in Europe
IVAR KROGHRUD, CEO
IVAR HAS BEEN WITH QUESTBACK
SINCE THE FOUNDATION IN 2000, AND
IS RESPONSIBLE FOR THE OVERALL
RUNNING OF THE COMPANY.
7ANNUAL REVIEW 2011
OUR VALUE PROPOSITION
Executive management
Ivar Kroghrud
Chief Executive Officer
Ivar has been with QuestBack since the Company was founded in 2000, and is responsible for the over-all running of the company. Before joining QuestBack, Ivar worked as a management consultant, focusing on strategy and eBusiness. Ivar holds a Bachelor’s degree from the Royal Norwegian Naval Academy and a Master’s degree from the Norwegian School of Management (BI).
Eli Cathrine Disch
Chief Financial Officer
Eli Cathrine joined QuestBack in 2008. She came from the position as CFO at Buypass AS – a Norwe-gian supplier of secure solutions for electronic ID, signature and payment. Prior to this, Eli worked for 8 years at PricewaterhouseCoopers; first as Finance Director at PwC in Hun-gary, then as a senior management consultant at PwC Consulting in Oslo. Eli Cathrine has a Bachelor’s degree in Business Administration from the American University in Paris, an MBA from the Norwegian School of Management BI, as well as studies in Corporate Finance from London Business School.
Oliver Trabert
Chief Technology Officer
Oliver joined QuestBack in 2011 as CTO as a result of the acquisi-tion of Globalpark. Oliver was the founder and managing director of WP-Experts and was one of the key architects of the tie-up with Global-park. Prior to founding WP-Experts, Oliver held several senior positions at Conet, initially in its German office and then for his last three years as CTO of Conet USA. Oliver is the author of numerous books and specialist articles on business portals and internet applications. Oliver is a true thought leader within Customer Experience Management, Social Media and Feedback Management.
Matti Heikkonen
Chief Operating Officer
Matti joined QuestBack in 2010 as a result of the acquisition of Digium – a Finnish market leader in EFM solutions. Matti has been the CEO of Digium since 2007, and the chairman of the board during years 2004-2009. Prior to Digium, Matti worked at Nokia Corporation in business development; first in strategic projects and then in strategic alliances responsible for the global Nokia – Cisco Systems alliance. Prior to this, Matti’s positions have included business develop-ment, m&a, strategy and manage-ment within the software industry. Matti has an M.Sc (tech.) from Helsinki University of Technology.
THE MANAGEMENT
QuestBack enables organizations to gain actionable insight and build stronger relationships with customers and employees, through leading feedback and social engagement solutions.
Develop continuously
Think outside the box
Find solutions
Seek to create maximum customer value
Be passionate about what we do
Don’t rest on our laurels
Go the extra mile
Care about each other as colleagues
Care about our customers
Care about the world we live in
QuestBack is a fast growing software com-pany. All the people here at QuestBack are highly capable knowledge workers. They go to work in the morning facing a rapidly develop-
ing and demanding marketplace. As we grow and as we continue to work towards our vision of making our custom-ers the winners in the experience economy, we are faced with a constant need to make the right decisions.
The right decisions, both big and small, on every level, every day. It is our belief that the employees at QuestBack will make the right decisions if they can be made by the right person, at the right level, without unnecessary esca-lation or bureaucracy. To do this we need two key ele-ments: a shared understanding of where we are going, and shared core values that are work as a compass in our everyday decision making.
9ANNUAL REVIEW 2011
The value of having values
OUR VALUES
11ANNUAL REVIEW 2011
Feedback and experience management
HUMAN RESOURCES» Recruitment Process Evaluation*
» Employee Turnover/Exit Evaluation*
» Competence Mapping
» Management Evaluation
» Employee Satisfaction SurveySALES
» Lead Generation
» Sales Meeting Evaluation*
» Lost Prospect Review*
» New Customer Entry/Exit
Evaluation*
CONTACT/CALL CENTER» Request/Task Registration
» Experience Evaluation
» Task and Follow-up Assignment
» Lead Generation
MARKETING» Customer Satisfaction Survey
» Customer/User Panel
» Product and Service Offering Evaluation*
» Web Site Evaluation*
» Campaign Evaluation*
ADMINISTRATION» Administration Internal Events
» Internal Service Evaluation*
» Meeting Planning
» Innovation/Suggestion Box
» Purchase Decision Support
INFORMATION» Satisfaction Survey
» User Panel
» Web Site Evaluation*
» Information Campaign Evaluation*
» Service Offering Evaluation
TRAINING» Invitation and Registration*
» Expectations/Pre-knowledge Mapping*
» Training Evaluation*
» Training Effectiveness
Measurement*
MANAGEMENT» Employee Satisfaction Survey
» Management Evaluation
» New Employee Entry/Exit Evaluation*
» New Customer Entry/Exit Evaluation
» Customer Satisfaction Survey
YOUR COMPANY/ ORGANIZATION
* EVENT-TRIGGERED AND PROCESS BASED SURVEYS AND/OR EVALUATIONS.
MORE ABOUT SOLUTIONS ON WWW.QUESTBACK.COM
QuestBack provides feedback management services and know-how for gathering, analyzing, and responding
to business critical feedback.
EASY TO GET STARTED!
» USER FRIENDLY
» WEB BASED
» READY TO USE TEMPLATES
» PRO ACTIVE ADVISORS
» ACCESSIBLE SUPPORT
SOLUTIONS
13ANNUAL REVIEW 2011
QuestBack is positioned at the center of four emerging areas. Coming from the areas of feedback management and market research, QuestBack has
taken the global shifts in the market seriously. With innovative new products and solutions we have ex-tended our offering and reach tremendously, and we are today heavily focused on Customer Experience Management (CEM) and social engagement.
QuestBack`s product launches in 2012 will strengthen these areas significantly with new and innovative solu-tions for the customers. To the extent organizations still question the value of investing in social media, QuestBack will help put the discussion to an end.
To be a winner in the experience economy, companies have to focus on how their customers perceive their brand, and they have to embrace social media and en-
gage their stakeholders through the new channels. QuestBack makes all this possible with our compre-hensive product portfolio.
QuestBack provides both out-of-the-box and tailor-made solutions. We have some of the biggest global brands on our client list, as well as smaller compa-nies. These organizations all find what they need to collect feedback, do research, report, analyze and engage using QuestBack products.
OUR OFFERING
A one stop shop
Feedback, experience management, and market research meet social engagement
OUR SPACE
EFM
MARKET RESEARCH
CEM SOCIALCRM
CEM
Customer Experience Management, controlling
and benchmarking of brand experience at digital touch points
SOCIAL CRM
Customer Relationship Management fostered by communication with custom-ers through communities and other social networking sites
MARKET RESEARCH
Customer intelligence and customer insight with focus on the social web
EFM
Enterprise Feedback Management
CORE COMPETENCE AREAS
QUESTBACK OFFERINGQUESTBACK FEEDBACK MANAGEMENT
& ENGAGEMENT PLATFORM
SERVICES & DEPLOYMENT
MAIN PRODUCT COMPONENTS
MAIN SOLUTION AREAS
EFM
Survey & Data collection
Self service Assisted self service Managed deploymentManaged service
(Outsourcing)
Roles & Workflow
Analytics & Reporting
Master Data Management
Community & Portal
Mobile & Social
Integration & Customization
SalesManagement
MarketingManagement
Human Resource
Management
Market Research
Training &Events
CustomerServices & Contact
Center
Product &Development
Administration& Data
Collection
CEM SOCIAL CRM MARKET RESEARCH
15ANNUAL REVIEW 2011
UNIQUE POSSIBILITIES
Social media meets traditional CRM
Everything you need in one place
OUR PLATFORM
No connection between traditional CRM and
social media collectivity
ChaosLack of ControlLack of Trust
Real-time insightRelevance
PersonalizationControl
Actionable data (=RoI)
Event Driven Feedback
Social InsightSocial media monitoring
CommunityPanel
Flexible role and rights management enable all organi-zational departments to use the platform as their own secure online research and engagement platform. Actionable and meaningful feedback from customers
or employees is available quickly and continuously. QuestBack customers can engage, collaborate and share without leaving the QuestBack platform. The platform is highly scalable, certified and compliant with the strictest security standards.
S ocial media has changed the game, and enterprises are looking for ways to regain control. QuestBack of-fers solutions to do exactly that; putting unstructured data back in controllable business processes.
OLIVER TRABERT, CTO
OLIVER WAS THE FOUNDER AND
MANAGING DIRECTOR OF
WP-EXPERTS AND IS A THOUGHT
LEADER WITHIN CUSTOMER
EXPERIENCE MANAGEMENT
AND ENTERPRISE FEEDBACK
MANAGEMENT.
17ANNUAL REVIEW 2011
SITUATIONHistorically, SWISS evaluated customer satis-
faction through paper surveys, administered by
cabin crew during the flight, a strongly interview-
er- biased method but still common for many
airlines. Additionally, the paper survey didn’t
provide clear insight of the flight guests repur-
chase intention. Since responses were collected
before landing and arrival – it was missing key
elements of the overall experience. The SWISS
customer experience varies a great deal, de-
pending on the class (First, Business, Economy)
in which the flight guest travels. For this reason,
SWISS tracks five segments separately (first
class, business class, economy class, long-haul
and short-haul). The challenge the Customer
Satisfaction Survey (CSS) group faced was the
participation of each class.
SOLUTIONSWISS needed to change their data collection ap-
proach to something more reliable and customer
friendly, that would measure across the entire
experience - tracking satisfaction scores from 14
stages of the customer journey. They would also
allow customers to use their preferred method
of response, including mobile devices and tab-
let computers to measure feedback on satisfac-
tion from travelling customers. SWISS uses the
QuestBack Enterprise Feedback Suite (EFS), with
all its online, mobile, local and social feedback ca-
pabilities. Most of the business or first class cus-
tomers are members of the SWISS frequent flyer
program, which means there is usually customer
data like email address, current flight details and
customer history, available. The surveys are sent
by email some days after the flight – with partially
completed known details about the customer
and the route. SWISS uses a random quota se-
lection in several steps, to capture reliable and
valid feedback without having to interview each
flight guest.
This includes a targeted approach for:
» Every airport and travel route
» Each type of aircraft
» All three travel classes
» All flight stages: booking procedure, Check-
in, Lounge, Boarding, Departure punctuality,
Irregularity handling, Cabin crew, Food and
beverages, Reading material, Seating comfort,
Cabin interior, Cleanliness, Arrival services,
Speed of baggage delivery.
RESULTThe success factors of CSS require top man-
agement commitment, intelligent survey design,
and clear responsibilities. SWISS achieves this
by making a program like CSS part of perfor-
mance targets. Moreover, they integrate three
different IT Systems (Customer database, Book-
ing system, QuestBack EFM platform) to make
the survey as intelligent and short as possible.
They also involve all customer-facing depart-
ments from the beginning to ensure that CSS
becomes a success. SWISS aimed to improve
the overall experience across its three customer
segments, and 14 steps of the customer journey
(from ticket purchase to baggage claim). Specific
goals were:
» Increase customer satisfaction
» Increase customer engagement, with higher
response rates and more favorable feedback
experience.
» Establish qualitative customer feedback
as an early indicator to identify potential
improvement areas. Suggestions were help-
ful, and applied towards the business class
seating plan.
» Reduce the cost of capturing feedback.
SITUATIONMarket research findings have shown that recom-
mendations amongst colleagues make a decisive
contribution to the sales success of Bosch Power
Tools. For this reason, Bosch Power Tools focus
on social networks. The goal is to develop plat-
forms for brand fans and brand ambassadors to
offer these valuable customers an ideal environ-
ment for recommendations. Bosch Power Tools
operates two social media platforms.
The professional community, known as “Bob”,
which has more than 460,000 visitors and 35,000
registered users, and primarily targets existing
customers, and the Facebook fan page, with
more than 10,000 fans. The purpose of the Face-
book page is to approach all Bosch fans who do
not yet own their own Bosch power tools – e.g.
vocational trainees or young craftsmen.
Bosch Power Tools’ goal was to find out whether
the marketing investment on Facebook was
worthwhile. “Do we reach new target groups?
How valuable are our Facebook fans in compari-
son to the members of the professional commu-
nity? How much overlap is there between Face-
book and the professional community?” Such
findings are necessary in order to implement
marketing resources in a targeted manner, and to
align all activities so that they are of optimal value
to the company.
SOLUTIONBosch Power Tools needed a software solution
that could create a comprehensive and custom
analysis of the users in social networks possible.
Social Insight Connect is a Facebook app that
combines quantitative and qualitative market
research methods. With this, brands such as
Bosch Power Tools, can verify whether they are
reaching the correct target group on Facebook.
At the same time, they can enter into direct in-
teraction with selected, especially valuable cus-
tomer segments in order to better understand
their needs. Social Insight Connect makes it pos-
sible for Bosch Power Tools to gain indispensable
knowledge for effective social media marketing.
Ivar Kroghrud, CEO of QuestBack, explains: “To-
day, social media plays an increasingly important
role in the communication between brand and
customer. Facebook is a powerful tool for brand
loyalty, because people are given direct access
to their favorite products there. Nevertheless,
companies have not yet taken advantage of all
the opportunities that this virtual exchange of in-
formation has to offer.”
RESULTWith Social Insight Connect, Bosch Power
Tools was able to answer a lot of questions. One
result showed that an above-average number
of Bosch fans on Facebook are woodworkers.
Bosch Power Tools reacted to these findings
with a specific approach to this target group,
e.g. through the staging of power tools used for
woodworking.
Bosch was able to positively answer the question
regarding the overlap between the Bob Commu-
nity and the Facebook fan page: Only about 11%
of the Bosch Power Tools social media users are
active on both the Bob Community and Face-
book. This means that addressing a new target
group on Facebook was successful. The results
show in particular that the planned recruitment of
vocational trainees was successful.
The findings show that the social media strategy
of Bosch Power Tools is paying off. Both Face-
book and the Bob Community are necessary in
order to reach a large number of the stakeholder
groups and industries that are relevant for the
success of Bosch Power Tools.
With Social Insight Connect, Bosch Power Tools
can analyze its Facebook fans – thus designing
new initiatives for current and future Bosch Power
Tools customers.
Bosch Power Tools knows the value of Facebook fans
Swiss Air fights for satisfied customers
CASE STUDY
CASE STUDY “BOSCH POWER TOOLS”
CASE STUDY “SWISS”
CASE STUDY
ABOUT BOSCH POWER TOOLSBosch Power Tools is the European market leader for profes-
sional power tools. The company supplies craftsmen and com-
panies covering all industries: from woodworking to electrical
installation and all the way to building construction and civil
engineering.
ABOUT SWISSSwiss International Air Lines is part of the Lufthansa Group and
a member of Star Alliance since 2006. Swiss serves from its Zu-
rich hub and the further Swiss international airports of Basel and
Geneva with a fleet of 90 aircraft 70 destinations in 37 countries
all over the world.
19ANNUAL REVIEW 2011
Board of directors’ report
BOARD OF DIRECTORS’ RE-PORT
1 THE BUSINESS
With the acquisition of the German company Globalpark AG, as well the US distributor Globalpark, Inc, QuestBack has confirmed its position as Europe’s leading supplier of complete services and solutions for organizations’ management and analysis of feedback and dialogue with their customers and stakeholders, whether it is in the form of Enterprise Feedback Management; through the integration and collaboration with more traditional CRM-systems; or by means of integration with and the use of social media. The Group developed and marketed such services in 2011 under the product brand names QuestBack®, Digium, Easyresearch Feedback Manager, and Globalpark EFS. The solu-tions are provided on a Software as a Service (SaaS) - platform, whereby customers’ access is provided on the basis of a sub-scription, usually for a year at a time.
The growth in the underlying business of the QuestBack Group continued in 2011, and with the Globalpark acquisitions, the Group can show a growth in total revenues of 66 % as compared to reported revenues in 2010.
At the end of 2011, QuestBack AS had fully owned subsidiar-ies in Finland, Sweden, Denmark, Germany, Austria, Great Britain and USA, with offices in Oslo, Helsinki, Stockholm, Gothenburg, Malmo, Copenhagen, Cologne, Vienna, London, and New York. Furthermore, QuestBack had franchise offices in 10 additional countries.
The company has its headquarters in Oslo, at Løvenskioldsgate 26. The group management team is based in Oslo and in Hürth outside of Cologne.
More than 75 per cent of the group’s revenues are generated outside of Norway.
2 THE FINANCIAL STATE-MENTS AND ACCOUNT-ING PRINCIPLES
The financial statements for the QuestBack group comprise the financial accounts for the parent company QuestBack AS, as well as the financial statements for the subsidiaries QuestBack Swe-den AB, QuestBack Danmark A/S, QuestBack Holding OY (FI) and QuestBack Group OY. The financial accounts for Globalpark AG, including the subsidiaries Tivian GmbH, Globalpark Austria, Globalpark UK, Globalpark, Inc, and WP Experts GmbH are con-solidated into the group accounts with effect from 1 August 2011.
The group financial statements are prepared according to IFRS (International Financial Reporting Standards)
QuestBack AS is owned by QuestBack Holding AS, which is held by the private equity fund Reiten & Co Capital Partners VII and a wide group of employees and management.
The QuestBack group reported revenues of 232.3 million NOK in 2011, and presented an ordinary net profit before tax of 25 million NOK. At the close of 2011 the group had a total balance of 29 million NOK in unrestricted cash. The group profit after tax was 15.5 million NOK.
3 RESEARCH AND DEVELOPMENT
QuestBack has people involved in development work in Oslo, Helsinki, Stockholm, and Cologne. These resources work as a single team on the further development of the QuestBack ser-vices, with a particular focus on development of new functional-ity and applications. Following the acquisition of Globalpark, the main hub for R&D has been placed at the offices in Hürth, outside of Cologne.
The R&D work is organized as a group project, and the costs related to the development of concept and programming is rec-ognized as an intangible asset in the balance sheet at group level.
4ACCOUNTING TREATMENT OF THE INVESTMENT IN SUBSIDIARIES
The subsidiaries’ financial results are fully consolidated into the group statement of profit and loss from the date of the acquisi-tion. In the preparation of the group accounts, the purchase price in connection with the acquisitions is allocated to the relevant items in the balance sheet; both to tangibles, as well as to intan-gible assets, such as customer portfolio, trademarks, technology and goodwill. The latter consists of excess values in the shape of the employees’ know-how; customer relationships beyond that which is reflected in the actual customer contracts; as well as the corporate culture and the growth potential that the acquisition entails. In connection with the acquisition of Globalpark, an al-location has been made in accordance with IFRS 3.
The Directors are of the opinion that the financial statements give a true and accurate picture of QuestBack AS’ assets and liabili-ties; financial standing, and financial results. The conditions for a going concern are present, and the financial statements for 2011 have been prepared on this basis.
5 COMMENTS ON THE PROSPECTS FOR THE BUSINESS
The Directors of QuestBack AS observe that the market for the services provided by the group is growing rapidly. The develop-ment in the group during 2011, as well as the access to new technology and services made possible through the Global-park acquisition, open up new market opportunities not only in Europe, but also in North America. The company continues its growth ambitions.
6 WORKING ENVIRONMENT, STAFF AND DIVERSITY
The working environment within the group and the subsidiaries is considered to be good. There were 62 employees in the parent company in 2011, whereas there were 71 employees in the rest of the Nordic countries. The acquisition of the Globalpark enti-ties brought a further 132 employees in Germany, Austria, Great Britain and the US, bringing the total number of employees to 265 in 2011. Approximately 25 % of the employees are women. There are no women on the board of directors. The company has as a goal to be an equal opportunity employer, and has since its establishment maintained a policy that there should be no dis-crimination on the basis of sex.
QuestBack has operations in all of Europe and in USA. Amongst the approximately 60 full time equivalents at the head office in Oslo, there were employees of 10 different nationalities. Within the group there are in total more than 20 nationalities represent-ed, and the group management team consists of four members and as many nationalities. The official group language is English. Specific measures to promote further diversity are therefore not deemed necessary.
THE BOARD OF DIRECTORS OF QUESTBACK AS
21ANNUAL REVIEW 2011
Consolidatedstatement ofprofit and loss
CONSOLIDATED STATE-MENT OF PROFIT AND LOSS
Consolidatedcash flowstatement
CONSOLIDATED CASH FLOW STATEMENT
PROFIT AND LOSS PROFIT AND LOSS
COMMENTS:
The consolidated financial statements for the QuestBack Group are prepared according to International Financial Reporting Standards – IFRS. The figures include the entities QuestBack AS with its subsidiaries QuestBack Sweden AB, QuestBack Danmark A/S, QuestBack Holding OY (Finland) as well as QuestBack Group OY (Finland) with subsidiaries.
In addition Globalpark AG with its subsidiaries Tivian GmbH, Globalpark Austria GmbH, WP Experts GmbH, Globalpark UK Ltd, and Globalpark INC are included from the time of acquisition; i.e. 1 August 2011.
The consolidated accounts are prepared in Norwegian kroner (NOK), which is the functional currency of the mother company and the Group. Figures in EUR are presented for informational purposes only. For the statements of profit and loss and cash flow, the figures are converted at the average rate for the relevant reporting year. For 2011 the NOK conversion rate to the EUR was 7.79, whereas the comparable rate for 2010 was 8.05.
QuestBack Group NOK’000 EUR’000
2011 2010 2011 2010
Sales revenue 230,152 137,186 29,535 17,035
Other revenue 2,121 2,376 272 295
Total revenue 232,273 139,561 29,807 17,330
Cost of Goods Sold 30,134 17,874 3,867 2,220
Gross profit 202,139 121,687 25,940 15,110
Personnel costs 115,369 60,927 14,805 7,566
Other operating costs 43,870 23,167 5,630 2,877
Total operating costs 159,238 84,093 20,435 10,442
EBITDA 42,901 37,593 5,505 4,668
Depreciation and amortisation 10,177 5,609 1,306 696
EBIT 32,724 31,985 4,199 3,972
Net financial items -7,705 -1,535 -989 -191
Earnings before tax 25,081 30,449 3,211 3,781
Tax on earnings 9,339 8,997 1,160 1,117
Earnings after tax 15,679 21,453 2,051 2,664
QuestBack Group NOK’000 EUR’000
2011 2010 2011 2010
CASH FLOW FROM OPERATING ACTIVITIES
Operating profit/loss 25,018 30,449 3,210 3,781
Income tax paid -6,117 -8,752 -785 -1,087
Depreciation and amortisation 10,177 5,609 1,306 696
Change in accounts receivable -14,420 3,069 -1,850 381
Change in accounts payable 4,720 -176 606 -22
Change related to allocation to tax reserve (Sweden) - -4,642 - -576
Change in other current items and accruals -22,170 9,847 -2,845 1,223
Change in working capital - - - -
Net cash flow from operating activities -2,791 35,403 -358 4,396
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of fixed assets -5,125 -1,312 -658 -163
Purchase of intangible assets -65,794 - -8,443 -
Purchase of financial assets - -173 - -21
Cash received on other receivables -33 - -4 -
Cash payments on other receivables -7,248 - -930 -
Net cash flow from investing activities -78,200 -1,485 -10,035 -184
CASH FLOW FROM FINANCING ACTIVITIES
Cash from increase in long-term debt - 8,375 - 1,040
Reduction in long-term debt -4,388 -8,395 -563 -1,042
Reduction in short-term debt - - - -
Reduction debt to parent company 103,218 -39,441 13,246 -4,897
Net cash flow from financing activities 98,830 -39,460 12,683 -4,900
Net change in cash and cash equivalents 17,839 -5,542 2,289 -688
Cash and cash equivalents at the start of the period 33,164 33,316 4,256 4,137
Cash balance in investment target - 5,390 - 669
Currency gain/loss on cash or cash equivalents 868 - 111 -
Effect of exchange rate differences - - 41 74
Cash and cash equivalents at the end of the period 51,871 33,164 6,697 4,192
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2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Revenues
EBITDA
23ANNUAL REVIEW 2011
Consolidatedbalance sheet1
CONSOLIDATED BAL-ANCE SHEET
Consolidatedbalance sheet2
PROFIT AND LOSS PROFIT AND LOSS
COMMENTS:The consolidated financial statements for the Quest-Back Group are prepared according to International Financial Reporting Standards – IFRS. The balance sheet reflects all entities held as at 31.12.2011. In connection with the acquisition of Globalpark AG and Globalpark, INC, respectively, a purchase price allocation was performed. This entails the identification of all tangible and intangible assets to which the relevant portions of the acquisition price are allocated, in accordance with IFRS 3. Similar ex-ercises have been performed for all previous acquisi-tions. To the extent any intangibles are qualified as goodwill, these are tested every year for impairment of the value.
The consolidated accounts are prepared in Norwe-gian kroner (NOK), which is the functional currency of the mother company and the Group. Figures in EUR are presented for informational purposes only. For the balance sheet, the figures are converted at the clos-ing rate for the relevant reporting year. For 2011 the NOK conversion rate to the EUR was 7.79, whereas the comparable rate for 2010 was 7.91.
ELI CATHRINE DISCH
JOINED QUESTBACK IN 2008. SHE
HAS OVER 20 YEARS’ EXPERIENCE
WITH FINANCIAL MANAGEMENT AND
CONSULTING IN A VARIETY OF BUSI-
NESSES, ALL OF WHICH HAVE BEEN DE-
FINED BY RAPID GROWTH AND CHANGE
QuestBack Group NOK’000 EUR’000
ASSETS AS AT 31 DECEMBER 2011 2010 2011 2010
NON-CURRENT ASSETS
Intangible assets 346,805 163,248 44,777 20,636
Furnishings and equipment 6,910 2,909 892 368
Other financial assets 5,724 6,891 739 871
Total non-current assets 359,438 173,048 46,408 21,874
CURRENT ASSETS
Receivables
Accounts receivable 68,036 28,301 8,784 3,577
Other receivables 16,790 11,911 2,168 1,506
Total receivables 84,826 40,212 10,723 5,083
Cash and cash equivalents 51,871 33,164 6,697 4,192
TOTAL CURRENT ASSETS 136,697 73,376 17,420 9,275
TOTAL ASSETS 496,135 246,424 63,828 31,149
QuestBack Group NOK’000 EUR’000
EQUITY AND LIABILITIES AS AT 31 DECEMBER 2011 2010 2011 2010
EQUITY SHARE CAPITAL
Issued capital 13,614 12,295 1,758 1,554
Share premium 57,738 270 7,455 34
Total share capital 71,352 12,565 9,212 1,588
RETAINED EARNINGS
Other equity 23,439 7,989 3,026 1,010
Total retained earnings 23,439 7,989 3,026 1,010
Total equity 94,791 20,554 12,239 2,598
LIABILITIES NON-CURRENT LIABILITIES
Deferred tax liabilities 9,522 1,353 1,229 171
Intra-group long-term liabilities 209,429 106,111 27,040 13,413
Other non-current liabilities 35,558 1,973 4,591 249
Total non-current liabilities 254,509 109,437 32,861 13,834
CURRENT LIABILITIES
Accounts payable 15,644 5,381 2,020 680
Income tax payable 4,045 2,289 522 289
Public duties payable 14,817 9,424 1,913 1,191
Intra-group short-term liabilities 1,135 1,135 147 144
Other short-term liabilities 111,195 98,202 14,357 12,413
Total current liabilities 146,836 116,432 18,959 14,718
Total liabilities 401,345 225,869 51,819 28,551
TOTAL EQUITY AND LIABILITIES 496,135 246,424 64,058 31,149
WHERE YOU CAN REACH US
HEAD OFFICE
NorwayLøvenskiolds gate 26 0260 Oslo Tel: +47 21 02 70 70 Fax: +47 21 02 70 71 www.questback.no
SUBSIDIARIES
Austria Wassergasse 25 1030 Wien Tel: +43 1 715 028 911 www.questback.at
Finland Keilasatama 5 02150 Espoo Tel: +358 20 743 1550 www.questback.fi
Germany Kalscheurener Straße 19a 50354 Köln-Hürth Tel.: +49 2233 7933 6 www.questback.de
Sweden Drottninggatan 78 111 36 Stockholm Tel: +46 8 440 88 00 www.questback.se
Engelbrektsgatan 17 A 211 33 Malmö Tel: +46 40 97 82 60 www.questback.se
Theres Svenssons gata 10 417 55 Göteborg Tel: +46 31 23 93 50 www.questback.se
UK 19-21 Great Tower Street London EC3R 5AR Tel: +44 207 403 3900 www.questback.co.uk
USA 1000 Lafayette Boulevard, Suite 20 Bridgeport, CT 06604 Tel: +1 203 690 1052 www.questback.net
FRANCISEES
Australia 7/3 Koala Crescent West Gosford 2250 Sydney Tel.: +61 2 8005 7201 questback.com.au
Belgium Stationsstraat 26 1930 Zaventem Tel: +32 2 300 83 60 www.questback.be
Canada 4 Robert Speck Parkway Suite 1500 Mississauga, Ontario L4Z 1S1 Tel: +1 905 896 6946 www.questback.ca
Denmark Høffdingsvej 34 2500 Valby Tel: +45 7070 1480 www.questback.dk
France 2, Chemin de l’Acre St Pierre 27120 Chaignes Tel: +33 232 22 6512 www.questback.fr
Ireland Holfield House 2/4 Merville Road Stillorgan, Dublin 18 Tel: +353 87 984 9534 www.questback.ie
Italy Via San Barnaba 47 20122 Milano Tel: +39 333 427 6393 www.questback.it
Via Della Martinica 135/137 00121 Roma Tel: +39 06 89718099 www.questback.it
Singapore 27 Bendemeer Road #02-657 Bendemeer Mall Singapore 330027
Tel: +65 61 00 80 55 www.questback.com.au
South Africa PO Box 51359 Waterfront 8002 Cape Town Tel: +27 21 558 7401 www.questback.co.za
Spain Plaza de Manuel Becerra, 15 1ºD 28028 Madrid Tel: +34 914 00 90 58 www.questback.es
Vía Augusta, 120 2º-2ª 08006 Barcelona Tel: +34 935 330 761 www.questback.es
Switzerland Hinterbergstrsse 30 6312 Steinhausen (ZG) Tel: +41 41 748 63 60 www.questback.ch
The Netherlands Argonweg 21 Industrieterrein Hogekant 1362 AA Almere-poort Tel: +31 (0) 36 54 64 184 www.questback.nl
W W W . Q U E S T B A C K . C O M