annual report 2001

Transcription

annual report 2001

Eniro omsl engelsk 02-04-11 09.52 Sida 1
A N N UA L R E P O R T 2 0 0 1
Eniro AB, Box 811, SE–161 24 Bromma
Visiting address: Gustavslundsvägen 135, Alviks Strand
Tel: +46 8 634 70 00, Fax: +46 8 585 090 15
E-mail: [email protected], Website: www.eniro.com
Eniro in brief
Addresses
Eniro is one of Europe’s leading players in directional media – both offline in the
form of printed directories and CD-ROM and online via the fixed Internet, voice
(directory assistance) and digital TV. Eniro is represented in 19 countries, publishes more than 850 titles, both offline and online, and operates the leading
Internet directory services in the Nordic countries.
BUSINESS CONCEPT Eniro’s business concept is to facilitate trade by providing directional information that connects
buyers and sellers.
Services target both the business-to-business (B2B) segment and users and individuals, business-to-individual (B2I).
VISION Eniro’s vision is to be the leading directional information company in Europe by being the information supplier that
businesses and individuals trust and turn to first when they wish
to buy or sell products and services.
OBJECTIVES Eniro’s overall goal is to achieve market leadership in Europe by maintaining and developing strong positions
in the markets in which the company is active. Eniro has an independent role in the marketplace and in the relationships it creates between buyers and sellers. As an innovator in the industry, Eniro meets the changing needs of users and advertisers by
creating new channels and services that facilitate trade. Eniro’s
ambition is to increase the volume of trade conducted in its marketplaces and to realize a greater proportion of the value thus
created.
SWEDEN
Tel: +46 8 634 70 00, fax: +46 8 585 090 15
Eniro Sverige AB
Gula Sidorna, Box 811, SE–161 24 Bromma
Tel: +46 8 704 35 00, fax: +46 8 585 090 37
Eniro Sverige AB
Emfas.com, Box 811, SE–161 24 Bromma
Tel: +46 8 634 71 00, fax: +46 20 77 00 12
E-mail: [email protected], Website: www.emfas.com
Din Del AB
Box 811, SE–161 24 Bromma
Tel: +46 8 634 64 00, fax: +46 8 636 64 60
E-mail: [email protected], Website: www.dindel.se
CONTENTS
DENMARK
Eniro Danmark A/S, P.O. Boks 1921, DK–2300 Copenhagen S
Visiting address: Amager Boulevard 115
Tel: +45 88 38 38 00, fax: +45 88 38 38 10
E-mail: [email protected], Website: www.eniro.dk
PRESIDENT’S COMMENTS
4–5
EASTERN EUROPE REGION
25
THE ENIRO SHARE
6–7
BOARD OF DIRECTORS’ REPORT
26
FIVE–YEAR SUMMARY OF KEY DATA
8
CONSOLIDATED INCOME STATEMENT
29
HISTORY
9
CONSOLIDATED BALANCE SHEET
30
31
DIRECTIONAL MEDIA
10
CONSOLIDATED CASH-FLOW STATEMENT
PRODUCTS AND SERVICES
11
PARENT COMPANY INCOME STATEMENT
32
GROWTH FACTORS AND OBJECTIVES
12
PARENT COMPANY BALANCE SHEET
33
PRIORITIES FOR 2002
13
PARENT COMPANY CASH–FLOW STATEMENT
34
ORGANIZATION AND PERSONNEL
14
ACCOUNTING AND VALUATION PRINCIPLES
35–36
STRUCTURAL CAPITAL
15
NOTES
37–42
BRANDS
16
AUDIT REPORT
43
ENVIRONMENT
17
BOARD OF DIRECTORS
44
18–19
EXECUTIVE MANAGEMENT
45
NORDIC REGION
20–21
ANNUAL GENERAL MEETING AND REPORTING DATES
46
CENTRAL EUROPE REGION
22–24
ADDRESSES
47
SWEDEN REGION
FINLAND
Oy Eniro Finland DS, Säterinkatu 6, FI–02600 Eesbo
Tel: +358 2 01 110 510, fax: +358 2 01 110 511
E-mail: [email protected], Website: www.eniro.fi
ESTONIA
Eniro Eesti AS, Madara 29, EE–190 03 Tallinn
Tel: +372 630 02 00, fax: +372 630 02 01
E-mail: [email protected], Website: www.eniro.ee
AS Teabeliin, Madara 29, EE–190 92 Tallinn
Tel: +372 630 03 00, fax: +372 630 03 01
E-mail: [email protected], Website: www.1188.ee
LATVIA
Eniro Latvija SIA, Maskavas 240, LV–1063 Riga
Tel: +371 702 08 00, fax: +371 102 08 21
E-mail: [email protected], Website: www.eniro.lv
47
LITHUANIA
Eniro Lietuva UAB, Zirmunu str. 68a, LT–2012 Vilnius
Tel: +370 2 361 000, fax: +370 2 361 001
E-mail: [email protected], Website: www.eniro.lt
Eniro InfoMedija UAB, Zirmunu str. 68a, LT–2012 Vilnius
Tel: +370 278 00 00, fax: +370 273 09 53
E-mail: [email protected], Website: www.eniroinfomedia.lt
RUSSIA
OOO Eniro Rus-M, Tverskaya ul. 16/2 bld.1, RU–103009 Moscow
Tel: +7 095 799 55 55/44, fax: +7 095 799 55 09
E-mail: [email protected], Website: www.yellowpages.ru
OOO Eniro Rus-S, Shpalernaya ul.36, RU–191123 S:t Petersburg
Tel: +7 812 279 82 10, fax: +7 812 279 82 40
E-post: [email protected], Website: www.eniro.ru
BELARUS
JV Eniro Belfakta, Mendeleeva 13, BY–220 037 Minsk
Tel: +375 17 235 35 15, fax: +375 17 235 23 43
E-mail: [email protected], Website: www.eniro.by
UKRAINE
Eniro Ukraina, Lesi Ukrainki blvd. 34, UA–01133 Kiev
Tel: +380 44 295 33 64, fax: +380 44 573 97 57
E-mail: [email protected], Website: www.eniro.com.ua
GERMANY
Wer Lifert Was? GmbH, P.O.Box 100549, DE–20537 Hamburg
Visiting address: Normannenweg 16–20
Tel: +49 40 25 440 0, fax: +49 40 25 440 100
E-mail: [email protected], Website: www.wlw.de
Windhager Mediengruppe GmbH, Holderäckerstr. 4, DE–70499
Stuttgart
Tel: +49 711 8 369 0, fax: +49 711 8 369 105
E-mail: [email protected], Website: www.windhager.de
POLEN
Panorama Polska Sp.z.o.o
ul. Domaniewska 41, PL–02-672 Warszaw
Tel: +48 22 542 2000, fax: +48 22 542 2001
Website: www.pf.pl
Eniro framvagn eng. original 02-04-11 09.52 Sida 3
The year in brief
GROWTH AND MARGIN IMPROVEMENT
• Revenues increased 50 percent to SEK 4,519 M (3,004).
• Online revenues increased 109 percent and now account
for 20 percent of total revenues.
• Operating profit before depreciation (EBITDA) increased
29 percent to SEK 1,150 M (891).
• The EBITDA margin improved in Sweden from 40 percent
to 44 percent.
HIGH LIQUIDITY IN SHARE In January 2001, Eniro AB
was listed on the Stockholm Exchange’s Attract 40 list.
In July, the Eniro share was included in the OMX-index.
In April, the Italian directory company SEAT Pagine Gialle
S.P.A. made a public offer for Eniro AB. The offer was later
withdrawn when it failed to obtain the desired 50.1 percent
of the share capital.
During 2001, Telia divested its entire shareholding in
Eniro, which on January 1, 2001 corresponded to 49 percent
of the total number of shares.
The share’s turnover rate increased to 2.53 (1.57).
I NCR EAS E D I NTE R NATIONAL
OPERATIONS
Outside
Sweden 47%
(27%)
CONTINUED STRONG EXPANSION In January, Eniro
acquired the Windhager Mediengruppe, one of Germany’s
leading directory companies in Baden-Württemberg.
In February, Eniro acquired 75 percent of “Svar om
Stockholm,” a telephone and Internet-based information service for private persons and companies. The remaining 25 percent was acquired in December. This service is marketed
under the name 118 767.
In April, Eniro acquired the remaining shares of AS
Teabeliin, a leading voice portal in Estonia.
In May, Eniro completed the acquisition of Panorama
Polska, Poland’s largest directory company.
In November, Eniro acquired Elisa Communications directory service Direktia, a leading directory company in Finland.
In November, Eniro made a public offer for Scandinavia
Online, Scandinavia’s leading Internet portal with operations
in Norway, Finland, Denmark, and Sweden. By January 2002,
99.2 percent of the shareholders had accepted the offer, and
compulsory redemption of the outstanding shares was initiated.
GROWING ONLINE REVENUES
REVENUES/EBITDA
SEK M
5,000
20% online
(15%)
Revenues
EBITDA
4,000
3,000
2,000
1,000
Sweden 53%
(73%)
3
80% offline
(85%)
0
1999
2000
2001
Statement from the CEO:
Continuous development
new patterns of usage. The objective is to constantly
increase opportunities for our advertisers to be seen when
users want to purchase a product or service.
AN INCREASINGLY INTERNATIONAL COMPANY
In recent years, Eniro has achieved considerable progress. In
October 2000, the company was a wholly owned subsidiary of
Telia with three fourths of its operations in Sweden. Today, Eniro
conducts operations in 19 countries and derives about half of its
revenues from international operations. Furthermore, Eniro is listed on the Stockholm Exchange with 100 percent free float.
Considerable progress has also been achieved with respect
to media channels. In 1997, only 1 percent of revenues were
derived from online operations. Today, this channel accounts for
20 percent.
FOCUS ON USAGE If I had to describe Eniro in a single
word, it would be repositioning. Why?
Our business concept is to facilitate trade by providing
directional information that connects buyers and sellers whenever a purchase need arises. To be able to create more effective marketplaces, we must always be at the forefront in the
development of our products and services. In the same manner, we must follow, understand, and perhaps even create
FROM DIRECTORY TO MARKETPLACE Perhaps the
most important repositioning relates to how we view our role.
Eniro has been successful in demonstrating that its business
is not just publishing directories, but creating marketplaces
that facilitate trade. With this insight, we can be more successful in showing our advertisers that Eniro is an important
part of their marketing – and we can strive to price our services in relation to the value that they create.
Progress is also the key word in the acquisitions implemented during 2001. Eniro seeks to be the market leader by
being number one or the clear number two in all markets in
which the company is active. We prioritize rapid integration of
acquired operations and the transfer of resources from
administration to sales in these companies. This process was
successfully completed in Finland, Poland and Germany.
BUILDING USAGE FOR FUTURE SUCCESS Eniro’s
success is measured and determined on the basis of what
the company delivers today and what it will achieve tomorrow. Our business demands a constant balance between
improved profitability over the short term and strengthened
market positions over the long term.
4
The key to success is usage. By creating and maintaining a
strong position among users, Eniro can develop its products
and get its advertisers understand the value that we create
by connecting buyers and sellers.
In Sweden, more than one billion searches in printed
directories alone are conducted through Eniro each year, and
new services are being developed for new user scenarios. In
other markets, Eniro is building the user base, in some cases
from zero. An excellent example is Copenhagen, where Eniro
in just three years created a completely new product. During
2001, the second edition of Contakt was published and
achieved a strong position in terms of both usage and now
also revenues.
Another example of both repositioning and the focus on
usage is Eniro’s acquisition of Scandinavia Online. By integrating SOL’s services with Eniro’s existing product portfolio,
traffic was increased by 5 to 10 times. Eniro now operates the
Nordic region’s leading search engines and has a very strong
position on the Internet advertising market, with about a 60
percent share of the total market in Sweden. Integration of the
service offering is under way and the yellow page information
now has a clear place in the search results of general search
engines.
2001 – A BALANCED PORTFOLIO Market conditions
were not the best in 2001. Despite this, Eniro reported 50
percent higher revenues and operating profit before depreciation of SEK 1,150 M, an increase of 29 percent. How was
this possible?
The year’s results are a clear consequence of Eniro’s
determination for continous improvement in the operations. In
Sweden, the transformation began in 1999 and resulted in a
very clear focus on sales. We have worked to successively
reduce costs. Systematic efforts were made to develop Eniro’s
online offering. Awareness was increased for the value created when Eniro mediates or facilitates trade – and thus the ability to charge for services. Progress on all of these fronts resulted in volume growth and clearly improved profitability. This is
5
also the method by which we are working in all countries,
although the time from investment to return may vary.
Eniro seeks to create a well-balanced portfolio of investments. A number of operations, primarily in Sweden, but
more recently more generally in the Nordic countries, now
account for stable revenues and high profitability. Other
operations are in the final stages of the repositioning process
and are expected to show returns shortly or in a somewhat
longer perspective.
Eniro’s most resource-intensive investment is currently in
Germany where a challenger position to the market leader
DeTe Medien and its network is being established. Eniro is
countering with a new, competitive product and a strong focus
on creating a user base that can be complemented by strong
sales efforts in accordance with Eniro’s successful model.
Although Germany is Europe’s largest advertising market,
the directional media segment is relatively undeveloped. As an
example, it can be noted that directory advertising per capita
is 40 percent lower than in Sweden.
PROS PECTS AN D M EASU R E S D U R I NG 2002
Eniro’s expects that sales growth will continue during 2002,
although given the weak economic conditions, growth will be
lower than during the preceding year.
During the year, Eniro will continue to work to strengthen the
Group’s position in Europe, by integrating and refinining recently
acquired companies in accordance with the proven business
model, increase the range of services in B2I and B2B and
maintain and strengthen the focus on users of our services.
Lars Guldstrand
President and CEO
The Eniro share: Increased liquidity
TRADING Eniro (ENRO) was listed on the Stockholm
Exchange on October 10, 2000. Since January 1, 2001, the
share is listed on the Attract 40 list. As of July 2, 2001, the share
is included in the Stockholm Exchange’s OMX index with a
weighting of 0.87 percent. Including new issues during the year,
408.6 million shares were traded, corresponding to a turnover
rate of 2.53 (1.57). A round lot is 100 shares.
SHARE PRICE TREND The highest and lowest prices paid during the year were SEK 124 and SEK 61, respectively. Calculated
on the basis of the share price on the final day of trading for the
year, SEK 75, Eniro had a market capitalization of SEK 13,214 M.
Compared with the closing price of SEK 95 in 2000, the share
decreased 21 percent in value. During the same period, the OMX
index fell 20 percent.
SHARE CAPITAL On December 31, 2001, the share capital
amounted to SEK 176 M distributed among 176,180,952 shares.
Each share has a par value of SEK 1 and carries one vote.
SHAREHOLDERS The number of shareholders was 5,732
(1,446) at year-end, an increase of 4,286 or 296 percent, compared with the preceding year. On January 1, 2001, Telia owned
about 49.1% of the share capital in Eniro. Telia reduced its owner-
SHARE PRICE TREND
ship on two occasions during the year through offers aimed primarily
at Swedish and international institutional investors. The first sale took
place in July, when Telia placed slightly less than half of its shareholding corresponding to about 23.6 percent of the share capital in
Eniro. In November, Telia divested all of its remaining shareholding,
corresponding to about 25.5 percent of the share capital. At the
same time, Elisa Communications divested the Eniro shares, corresponding to 7 percent of the total shares, which were received as
payment for the acquisition of Direktia. In total, this placement corresponded to 30.7 percent of the shares in Eniro. As of December 31,
2001, the ten largest owners accounted for 39 percent of the number of shares and votes. Excluding Telia, the corresponding proportion on December 31, 2000, was 27 percent. On December 31,
2001, the proportion of institutional owners was about 98 percent
(95). On the same date, the proportion of foreign owners amounted
to about 56 percent.
DIVIDEND POLICY In conjunction with Eniro’s exchange listing, the
Board of Directors stated that the Company’s dividend over time should
correspond to about 30 percent of annual profits. One prerequisite for
this policy is that the Company is not considered to require liquid funds
for such purposes as acquisitions. For the 2001 fiscal year, the Board
of Directors proposes a dividend of SEK 0.70 (0.65) per share.
TREND OF SHARE CAPITAL
Date
March 30, 2000
September 13, 2000
September 13, 2000
February 21, 2001
June 1, 2001
November 26, 2001
Change in Share capital
Number of Par value
Transaction share capital
SEK
shares
SEK
Eniro established
100,000
100,000
1,000
100
100:1 split
0
100,000
100,000
1
1
New issue 1) 149,900,000 150,000,000 150,000,000
5,725,287 155,725,287 155,725,287
1
New issue 2)
8,197,400 163,922,687 163,922,687
1
New issue 3)
12,258,265 176,180,952 176,180,952
1
New issue 4)
1)
Directed placement to Telia Cable Holding BV. Subscription price SEK 1.21 per share.
2)
Directed placement to SBC Ameritech. Subscription price SEK 93.42 per share.
3)
Directed placement to Telia AB. Subscription price SEK 116.40 per share.
4)
Directed placement to Elisa Communications OY. Subscription price SEK 76.15 per share.
6
ANALYSTS COVERING ENIRO
ABG Sundal Collier
Alfred Berg – Henrik Fröjd and Peter Lindmark
CAI Cheuvreux – Karl-Johan Bonnevier
Carnegie – Peter Dahlander
Cazenove – Gorm Thomasson
Deutsche Bank – Craig Watson
Enskilda Securities – Nicklas Fhärm
Handelsbanken Securities – Rasmus Engberg
HSBC – Henrik Persson
Hagströmer & Qviberg – Sven Sköld
Merrill Lynch – Lachlan Parket and Paul Sullivan
Morgan Stanley – Javier Marin
Nordea Securities – Stefan Brännlund
Redeye – Daniel Lindkvist och Stefan Nelson
Remium Securities – Mattias Svensson
Swedbank – Patrik Nygård
UBS Warburg – Per Afrell
Öhman Fondkommission – Patrik Egnell
WARRANTS During 2000, warrants were issued with a subscription price of SEK 133 and a subscription period extending
through February 21, 2004 and offered to all Group employees.
See also note 16. At full subscription, the total number of shares
would increase by about 1.5 million, corresponding to a dilution
of slightly less than 0.9 percent.
SHAREHOLDER STATISTICS ON DEC 31, 2001
LARGEST SHAREHOLDERS ON DEC 31, 2001
Shareholding Number of shareholders
1 – 500
2,632
501 – 1,000
1,111
1001– 10,000
1,394
10,001 – 50,000
304
50,001 – 100,000
92
100,001 – 500,000
137
500,001 – 1,000,000
28
1,000,001 – 5,000,000
30
5,000,001 –
6
Total
5,732
Shareholder
Number of shares
Chase Manhattan
10,333,378
Nordea Fonder
9,140,200
Morgan Stanley & Co. Intl. Ltd.
7,483,946
Robur Fonder
7,300,400
Goldman Sachs Intl. Ltd.
6,723,574
Bankers Trust Company U.S.
6,470,807
Euroclear Operations Centre
6,347,520
Morgan Stanley & Co Inc. W9
5,611,449
State Street Bank And Trust Co.
4,836,872
SHB Fonder
4,803,232
Total
69,051,378
Source: SIS Shareholder Service
7
Percent Number of shares
45.9
629,530
19.4
966,134
24.3
4,853,805
5.3
7,247,279
1.6
6,791,748
2.4
31,961,993
0.5
21,032,642
0.5
59,727,147
0.1
42,970,674
100
176,180,952
Source: SIS Shareholder Service
% of capital
5.9
5.2
4.2
4.1
3.8
3.7
3.6
3.2
2.7
2.7
39.1
Key ratios: Five-year summary
2001
20001)
19991)
19981)
19971)
Income statement
Operating revenues
Operating revenues increase, %
Online revenues
Online revenues increase, %
Online revenues share, %
EBITDA
EBITDA margin, %
EBITA
EBITA margin, %
Income for the year
Cash Earnings
Interest coverage, times
4,519
50
925
109
20
1,150
25
1,065
24
453
828
7,1
3,004
13
442
111
15
891
30
865
29
489
642
15,2
2,649
20
209
287
8
769
29
745
28
402
554
2,210
6
54
200
2
602
27
571
26
2,078
8
18
Balance sheet
Net indebtedness, interest-bearing on closing date
Shareholders’ equity, 12-month average
Net indebtedness, interest-bearing/EBITDA, times
Return on equity, %
Debt/equity ratio, times
Equity/assets ratio, %
1,960
3,464
1.7
13
0.39
54
969
1,492
1.1
33
0.40
50
Other key ratios
Average number of full-time employees
Number of full-time employees on closing date
3,606
4,151
2,142
2,381
1,820
1,668
1,510
27.95
5.12
20
28.25
2.80
75.0
176,181
161,665
20.03
4.28
SEK M
Data per share
Operating revenues per share, SEK
Cash Earnings per share, SEK
Cash Earnings per share increase, %
Equity per share, SEK
Earnings per share, SEK
Share price on closing date, SEK
Number of outstanding shares on closing date (000s)2
Average number of shares for the period (000s)
1)
2)
1
499
24
463
22
15.98
3.26
95.0
150,000
150,000
Pro forma
In addition, there are warrants for 1,500,000 shares.
Definitions
EBITDA Operating income before
interest, taxes, depreciation and amortization of goodwill.
Interest-coverage ratio – operating income EBITDA plus financial
income in relation to financial expenses.
Return on equity Income for the year
as a percentage of average shareholders’ equity.
EBITDA margin Operating income
before interest, taxes, depreciation and
amortization of goodwill expressed as a
percentage of operating revenues.
Net indebtedness, interest
bearing
Interest-bearing liabilities, including
interest-bearing provisions reduced by
interest bearing assets.
Debt/equity ratio Net liabilities divided by shareholder’s equity
Shareholders’ equity, average
The average shareholders’ equity is
based on average shareholders’ equity
per quarter, which in turn is calculated
based on the opening and closing balances for each quarter.
Operating revenues per share
Operating revenues divided by the average number of shares for the period
EBITA Operating income before interest, taxes and amortization of goodwill.
EBITA margin Operating income
before interest, taxes and amortization
of goodwill expressed as a percentage
of operating revenues.
EBIT Operating income before interest
and taxes.
Cash Earnings Income for the year
with reversal of depreciation.
Net indebtedness, interest bearing/EBITDA
Interest-bearing net indebtedness in
relation to EBITDA.
Equity/assets ratio Shareholder’s
equity divided by total assets.
Cash Earnings per share Cash
Earnings divided by the average number
of shares for the period.
Average number of shares for
the period The average number of
shares for the period is calculated as
the average number of shares each
quarter, which in turn is calculated on
the opening and closing balances for
the number of outstanding shares each
quarter.
Equity per share Shareholders’
equity divided by the number of outstanding shares on the closing date.
Pro forma The historical information
has been adjusted to the structure that
applied in conjunction with the listing
on the exchange on October 10, 2000.
Earnings per share Income for the
year divided by the average number of
shares for the period.
8
History
9
1889
• The Royal Telegraph Authority, subsequently Televerket and now
Telia, publishes the first telephone books.
1978
• Together with the US conglomerate ITT, Televerket launches
the first edition of Gula Sidorna, the Swedish Yellow Pages.
1984
• Televerket exercises its option to acquire ITT’s share of
Swedish directory operations.
1986
• Televerket expands its directory operations and acquires the
independent directory company Din Del, which publishes local
directories in Sweden, Finland and France.
• The predecessor to Emfas (Business Directory) is established.
1991
• Televerket establishes a separate directory division in which all
directory operations are consolidated.
1992
• Directories are launched in Estonia and Latvia.
1993
• Directories are launched in Russia, Lithuania and Belarus.
1994
• Directories are launched in the Netherlands and the U.S.
1996
• The first online version of Gula Sidorna, gulasidorna.se, is
launched.
• Herold Business Data is acquired in Austria.
• Acquisition of Mostrups Forlag and Lokalbogsforlaget in
Denmark.
1997
• Directories are launched in Ukraine.
• Telia decides to focus directory operations on the Nordic and
Baltic regions. As a consequence, operations in the U.S. and
Austria are divested.
• Telia acquires 49 percent of Panorama Polska together with
GTE/Verzion, which owns the remaining 51 percent.
• The Business Directory name is changed to Emfas, which is
also launched online as emfas.com.
1998
• All directional-related operations within Telia InfoMedia are
consolidated in Telia InfoMedia Reklam.
• A restructuring project called Strategic Initiative 1998/2000 is
started to focus on sales and marketing issues, as well as the
Internet and new media channels.
1999
• Restructuring of Swedish operations and online services
grows in strength.
• Operations in the Netherlands are divested.
• The first online version of Din Del, dindel.se, is launched.
2000
• Eniro is established and acquires Telia’s previous directional
operations.
• The company is listed on the OM Stockholm Exchange’s
O-list on October 10.
• Together with Ericsson and Telia, Eniro becomes the world’s first
supplier of directional information to offer MPS (Mobile
Positioning Services), thus customizing information in relation to
the user’s location.
• Yellow Pages Moscow is acquired.
• The German company Wer Liefert Was? is acquired, and a
contract is signed for the acquisition of the German B2C
company Windhager Mediengruppe, which works with local
and regional information.
• The Copenhagen directory Contakt is launched.
• Eniro becomes Sweden's largest Internet advertising company.
• All employees wherever practically and legally possible are
offered to participate in a warrants program.
Directional media:
A unique market where buyers seek sellers
Unlike traditional advertising, in which sellers advertise to reach buyers, directional information is a channel where buyers take the initiative to reach sellers.
D I R ECTI NG B UYE R S When using directory media,
users themselves take the initiative in seeking information in
contrast to other advertising where the seller attempts to
reach prospective buyers with its message. The market is
characterized by a broad user and advertiser base and high
and stable profitability.
DIRECTIONAL MEDIA POSITIONED TO GAIN IN
PROMINENCE Online technology makes more evident
the role that directories play in connecting buyers and sellers.
Advertisers can to a greater extent measure the number of
transactions and volume of trade delivered by a directory
advertisement.
RESILIENCE IN A WEAKER ECONOMY This unique
position in the advertising market makes the directories industry less sensitive to economic fluctuations than traditional
media, due to the fact this form of advertising is much closer
to a purchase than more general brand advertising and is
therefore considered important, particularly among small and
medium-size companies. Furthermore, the cost for a directory
advertisement is also relatively low in absolute terms.
The past year has been characterized by weak economic
trends, slower growth, and, as a result, generally lower advertising expenditures in Europe. Despite this, the market for
directory media increased in all geographic markets in which
Eniro is active with the exception of Germany, where directory media declined by 1 to 2 percent, compared with 2000.
STRONG COMPETITION AND CONTINUED CONSOLIDATION IN EUROPE With respect to the competitive situation in Europe, it is generally the case that there are
only one or two players with a leading or significant position
in each market. During 2001, consolidation of the industry
continued, and Eniro was one of the most active players in
Europe. Since Eniro was established, eight acquisitions have
been made. Consolidation of the industry will continue during
2002.
Companies offering directory services both online and
offline are gaining ground with respect to both usage and
advertising revenues. Even more generally oriented portals
that have search engines with high usage rates have expanded their operations to include services for facilitating trade for
their advertisers. As an example, 30 percent of Scandinavia
Online’s revenues during 2001 were attributable to non-banner related advertising revenues.
TECHNOLOGY ENABLING GREATER CUSTOMIZATION Developments in technology and the increased
usage of the Internet and mobile devices create potential for
new services and greater customization. For example, when
an interested buyer uses a mobile phone to request information about restaurants, Eniro can provide a listing of those
restaurants that are closest to the user’s location. As new
technologies emerge and user and consumer behavior
evolves, Eniro expects that content and delivery of information will become increasingly customized.
Eniro aims to be a leader in commercializing modern, customer-adapted technologies, thus strengthening its position
as a supplier that creates value.
10
Eniro’s products and services
Region
Operations
Product portfolio
Examples of products and
services
Sweden
Eniro Sverige AB
Directories
Internet services
Telephony services
Digital TV
Mobile services
Gula Sidorna, Emfas.com, DinDel
www.gulasidorna.se, www.emfas.com,
www.passagen.se, www.evreka.se
118 767
Gula Sidorna
Gula Sidorna
Nordic Region
Denmark
Eniro Danmark A/S
Directories
Internet service
Telephony services
Mobile services
Contakt, Mostrup
www.contakt.dk, www.sol.dk, www.mostrup.dk, www.kvasir.dk
Contact Svar 80 333 666
sms.sol.dk
Finland
Oy Eniro Finland AB
Directories
Internet services
Mobile services
Yritystele, Kaupunki-info
www.yritystele.fi, www.suomi24.fi, www.evreka.fi
sms.haku
Oy Eniro DS AB
Directories
Telephony services
Keltaiset Sivut Helsinki
0100100, 118
SOL A/S
Internet services
Mobile services
www.sol.no, www.kvasir.no
sms.sol.no
Germany
Wer Liefert Was? GmbH
Eniro Windhager
Mediengruppe GmbH
Internet services
Directories
Internet services
CD-book, www.wlw.de
Eniro
www.eniro.de
Poland
Eniro Polska S.p.z.o.o*
Panorama Polska
Directories
Internet services
Panorama Firm
www.pf.pl
Eniro Moskva
Directories
Internet services
Yellow Pages
www.yellowpages.ru
Eniro S:t Petersburg
Directories
Navigator
Kontakt!
Ukraine
Eniro Ukraina
Directories
Telephony services
Kniga Mista
Eniroline 4909888
Belarus
JV Eniro Belfakta
Directories
Internet services
Telephony services
Business Belarus, Kontakt!
www.btb.by
085 Infoline
Estonia
Eniro Eesti AS
Directories
Internet services
Ärikataloog, Kontakt!
www.arikataloog.ee, www.kontakt.ee
AS Teabeliin
Telephony services
1188 infoabi
Latvia
Eniro Latvija SIA
Directories
Internet services
Telephony services
Visa Latvia, Kontakti!
www.visalatvija.lv, www.kontakti.lv
Infoline 7 222222
Lithuania
Eniro Lietuva UAB
Directories
Internet services
Visa Lietuva, Kontaktas!
www.visalietuva.lt
Eniro InfoMedija UAB
Telephony services
1588
Norway
Central Europe
Eastern Europe
Russia
*Panorama Polska has approved a name change to Eniro Polska Sp.z.o.o and applied for registration of this name.
Eniro AB (publ) or other companies within the Eniro Group hold the exclusive right to Eniro®, and other brands which are used in
the Eniro Group and are mentioned in this annual report.
11
Growth factors and objectives
In growth markets for directional media, Eniro seeks to be the European leader
by setting clear goals and applying a proven business model.
Eniro offers directional information that brings together buyers and sellers and facilitates trade. Eniro distributes information through a number of media channels, such as printed
directories, fixed and mobile Internet, voice, CD-ROM and
digital TV. By adapting information to the appropriate channel
– and above all the user’s situation – Eniro’s products and
services should always be available to users.
Eniro offers services to both users or individuals, business-to-individual (B2I) and to businesses, business-to-business (B2B). Eniro uses the term B2I to indicate that most
individual users make use of Eniro’s services both in their
work and privately.
Eniro has grown rapidly in recent years through active participation in the process of change transforming the directory
industry, particularly in Europe. Important trends have been
continued deregulation of the telecom industry, the emergence of new online players and increased interest for the
industry in the capital market.
GROWTH FACTORS There is a significant growth potential in directional media. Eniro has identified the following
growth factors:
Underlying growth Unexploited market potential in combination with long-term GDP growth in Europe provides an
underlying market growth.
Expansion offline and online Both the offline and
online segments within directional media continue to grow
with more rapid growth in the online segment. Eniro will drive
this development and seeks to increase both revenues and
margins in both segments.
Applying a successful business concept in new
markets Eniro’s business model has proven successful in
several markets. Eniro will therefore continue to seek international expansion in new growth markets.
OVERALL OBJECTIVES Eniro has formulated the following overall objectives in becoming the leader in the European
market for directional media:
Strengthened position in existing markets Eniro
will exploit its strengths and leverage its expertise, capacity
and experience with respects to branding, sales and pricing
to broaden the user base and accelerate continued market
growth.
Increased online presence Eniro will expand its operations by using new media channels and creating added
value through increased sales volumes.
Increased international presence Eniro will seek new geographic markets in Europe in which a strong market position
can be quickly attained and a proven business concept
exploited.
12
Priorities for 2002
Eniro has defined and prioritized initiatives for maintaining and strengthening its
position as Northern Europe’s leading directional media company.
INTEGRATION During 2002, Eniro will integrate and refine
recently acquired units.
Since the exchange listing in 2000, Eniro has grown rapidly and is currently Europe’s fourth largest directional media
company. During 2001, six acquisitions were completed, and
rapid integration in accordance with Eniro’s proven business
concept is prioritized in order to maximize value.
In addition to general guidelines for management and
administration, the integration process includes methods for
evaluating the market position, measuring sales effectiveness
and optimizing the product portfolio and, above all, customer
segmentation and pricing policy. Integrating a company into
the Eniro Group and coordinating the product portfolio, sales
and pricing concepts is a project that extends over several
years and that includes various marketing measures.
Experience from several markets indicates that these measures can result in a temporary decrease in the company’s
profitability, while increasing both growth and profitability in a
somewhat longer perspective.
13
ONLINE MEASURES Eniro’s online operations consist
of products targeted to both the B2I (business-to-individual)
and B2B (business-to-business) segments.
Over the past five years, Eniro has built up a strong online
position, and in 2001, online revenues accounted for SEK
925 M (442) or 20 percent (15) of total revenues. The acquisition of Scandinavia Online (SOL) will further strengthen
Eniro’s online position in the Nordic region with high usage
figures and strong market positions with respect to search
services.
With the acquisition of Wer Liefert Was? (WLW) In
Germany, Eniro established a stable foundation enabling the
Company to strongly expand online B2B services in Europe.
WLW is a market leader in German, Switzerland, Austria,
Croatia, the Czech Republic and Slovenia, and its database
contains searchable information on more than 350,000 companies in 13 European countries. With the WLW concept as
a platform, Eniro is now developing a pan-European B2B
offering.
Organization and employees
Integrating and increasing the efficiency of operations while strengthening the business culture are prioritized measures.
ACQU I S ITION S AN D CON SOLI DATION Eniro’s
organization was expanded significantly through the acquisitions completed during 2001. These companies are being
successfully integrated into the Group.
The Polish company Panorama Polska and the German
companies WLW and Windhager are now consolidated in
the Group. In November, the Finish company Direktia with
370 employees was acquired. Integration of Direktia with
Eniro’s existing operations and with SOL in Finland has
begun.
In Sweden, the three independent operations Gula
Sidorna, Din Del and Emfas merged their customer service,
marketing and business development with Eniro Sverige AB.
Eniro’s key functions are being centralized to avoid duplication of work, encourage best practices and reduce costs. In
particular, functions relating to the production process, such
as paper purchasing and printing, are administered centrally.
In conjunction with the acquisition of SOL, Eniro created a
joint operations and development organization for online
operations that will initially serve Nordic operations.
business partners. Eniro is a media company with a personal
profile, whose employees are eager to explore and develop
new methods for connecting buyers and sellers and who
always focus on the user. Eniro functions as an international
network of local experts. Due to its rapid geographical
expansion, Eniro attaches great importance to ensuring that
the company’s basic values resonate throughout the Group.
NUMBER OF EMPLOYEES BY COUNTRY
2001
Average full-time employees
Pro forma 2000
Total
Men, %
Total
Men, %
Sweden
634
Denmark
334
Finland
297
Germany
378
Poland
733
Estonia
195
Latvia
138
Lithuania
184
Russia
313
Belarus
116
Ukraine
160
Other countries and regions 124
Total
3,606
46
60
36
58
41
19
22
29
28
27
32
50
41
553
312
239
175
164
169
310
105
115
2,142
60
42
35
24
24
26
45
33
48
42
B US I N E SS CU LTU R E Eniro’s business culture has
always been a success factor for the company. The company’s values can easily be embraced by both employees and
GENDER DISTRIBUTION
Men 41% (42%)
Chairman:
Board members:
Björn Svedberg
John Abrahamsson
Lars Berg
Per Bystedt
Marianne Nivert (resigned on December 6, 2001)
Jan Rudberg
Lars Guldstrand
Chief Financial Officer
Lennart Bernard
Legal Affairs
Mikael Engqvist
Information and Investor Relations
Erik Åfors
Sweden Region Nordic Region
Sweden
Denmark
Peter Kusendal Bengt Dahl
President and CEO
Lars Guldstrand
Women 59% (58%)
Marketing and Business Development
Mats Eklund
Central Europe Region
Organizational Development, Business Concept
and Human Relations Bertil Levin
Eastern Europe Region
Norway
Finland
German
Germany
Poland
Estonia Latvia Lithuania Russia Belarus Ukraine
Kristin Skogen Lund
acting president
Hans Petter Terning
Pär Kempe
Windhager
WLW
Roger Asplund Pär Kempe
Franz-Ferdinand Kress Andrew Pylyp
Peter Schulze
14
Structural capital: Tools for increased sales
Eniro’s structural capital consists of the tools and methods that enable employees to
contribute to achieving the Company’s business objectives.
SALES AND MANAGEMENT CONCEPT Eniro has a
strong focus on sales and has developed a successful sales
and management concept for defining and achieving sales
objectives in a simple manner. The objective is to increase
revenues by structuring the sales process – from the very
first contact to support after the sale – thereby ensuring
high-quality customer service regardless of market segment,
product or country and a high sales rate for sales personnel.
The concept extends beyond the sales process itself and
includes management issues, such as how to develop
employee skills and the ability to direct sales and thus
achieve established sales targets. This concept, which is one
of Eniro’s most important work methods, is based on the
experience that has been gained through many successful
years in several markets. The concept provides structured
guidelines for continuous training of Eniro employees in the
areas of leadership, sales, work efficiency and reporting.
Implementation, local adaptation and refinement of the
concept takes place continuously through a network of local
“ambassadors” who meet several times each year to review
and refine the concept against the background of developments in local companies, the Group and the market.
PRICING CONCEPT Pricing is of key importance for the
Group’s sales and profitability. Over the long term, Eniro
strives for pricing that is based on the value that advertising
creates for the customer, which in turn depends on the
usage attained. Eniro’s models are thus based on the pro-
ducts market position. For services, the focus is on expanding the advertiser base, while established products are
refined and enhanced to include new services.
To create demand in completely new markets, Eniro may
initially offer new products free-of-charge or at low cost to
the advertiser. When the product or service is established,
the customer value becomes evident and prices can be
adjusted. An excellent example of this is how Eniro created a
strong user base in Copenhagen and is now able to use this
base to increase revenues.
Brand: Higher visibility and
increased efficiency
Work to create a corporate branding platform began in 2001 as part of Eniro’s overall strategy. The joint platform is intended to increased efficiency in the Group’s marketing communications by creating clarity, as well as business and economic synergies.
DEVELOPING THE ENIRO BRAND Eniro manages
and develops its brands on two levels: the corporate brand
and product brands. These levels are linked through a supporting branding strategy, meaning that the products are promoted under their own brands but linked to the corporate
brand.
Eniro will build the corporate brand through increased market
presence, harmonization of visual identities and stronger links
to product brands. Full effort is currently being devoted to
this work internally.
At the product level, brands will primarily be strengthened
through centrally coordinated product development intended
to result in stronger product concepts with broader usage and
increased benefit. To an increasing extent, products will take
the online world as their starting point, while the prerequisites
for printed directories will follow the requirements for those
media. This means that the number of product brands will gradually be reduced at a rate determined by individual conditions
in each market. Internal projects in this area are also in
progress, and changes will be implemented during 2002.
During 2001, a uniform visual identity was introduced for
both the corporate brand and product brands. Work to
anchor branding efforts within Eniro was begun, and rules to
protect intangible rights were established. An international
brand management concept is also being introduced with
common corporate systems for management, measurement
and follow-ups. Various tools to facilitate brand management
in subsidiaries are also being developed. The foundation for
this work is the Eniro Brandweb, an internet-based branding
handbook.
16
Environment: A competitive advantage
With minimal environmental impact as the starting point, Eniro will offer its customers a broad portfolio of information services in various distribution formats.
GUIDING PRINCIPLES FOR ENVIRONMENTAL
WORK Eniro seeks to demonstrate strong commitment to
the environment and awareness that having a sound external
and internal environmental policy is an important competitive
tool. Eniro is a part of society and everyone shares responsibility for the environment. Because the prerequisites for environmental work vary significantly among the countries in
which Eniro is active, each company develops individual
action plans for working with environmental issues. Eniro
strives to use resources in such a manner that the environmental impact of its operations is minimized. This includes
the entire life cycle of products and services. Eniro’s suppliers must have an environmental policy and an action program
for environmental issues.
GOALS FOR ENVIRONMENTAL WORK
• Eniro strives to be better than prevailing legislation in environment work.
• Eniro strives to implement appropriate environmental
labeling of its products.
• Through training and other activities, Eniro’s employees are
given the appropriate knowledge of environmental issues
and become motivated to continuously improve
environmental work.
• Each company is required to establish adequate action
programs with respect to environmental issues.
17
• Eniro seeks develop and supply goods and services that
have the lowest possible impact on the environment, that
make efficient use of energy and natural resources and that
can be reclaimed or reused.
Sweden Region: Steady growth and
increasing share for online
Eniro is the Swedish market leader in directional media with about a 75 percent
market share with respect to printed media and about 60 percent of the total
Swedish Internet advertising market. In total, trade of just over SEK 300 billion was
1
mediated via Gula Sidorna and Din Del in 2001 .
SALES AND PROFIT During 2001, revenues increased
by about 10 percent to SEK 2,409 M (2,184), despite weak
economic conditions and a declining advertising market.
Operating profit before depreciation (EBITDA) increased by
20 percent to SEK 1,059 M (884). The EBITDA margin in
Swedish operations increased from 40 percent to 44 percent during the year. The Sweden Region accounted for 53
percent (73) of the Group’s revenues. During 2001, the
Sweden Region accounted for 92 percent of the profit
before depreciation. During the year, revenues from online
operations increased by slightly less than 40 percent and
accounted for 20 percent of total revenues.
MARKET The Swedish market is characterized by consolidation and competition from new companies in fixed and
mobile Internet, telephone services and voice-mediated and
information services. There is also competition from traditional
directory media companies. In Sweden, the traditional advertising market declined by about 10 percent compared with 2000,
to SEK 15.5 billion (17.3). The market for Internet advertising
declined by about 14 percent to SEK 845 M thus corresponding to about 5.2 percent of the traditional advertising market2.
Eniro has a market share of 75 percent (75) in the segment
for printed directories. During the year, Eniro increased its share
of the total Swedish market for Internet advertising to 60 percent (33).
CUSTOMERS Eniro Sweden has a broad base of about
190,000 customers consisting of small and medium-size businesses for which directory advertising and Internet services are
important contact channels. Directory advertising is less affected by economic fluctuations than other types of advertising.
1Sifo survey conducted during the period from September 1, 2000 to June 30, 2001. In total, 10,335 randomly selected Swedish citizens were interviewed, which was a representative
national selection.
2 IRM, Institut för Reklam och Mediastatistik, November 2001.
Revenues, SEK M
of which online, SEK M
of which online, %
Profit before depreciation (EBITDA), SEK M
Full-time employees at year-end
1998
1,637
33
2.0
497
637
1999
1,887
166
8.8
584
500
2000
2,184
355
16.2
884
553
2001
2,409
493
20.5
1,059
754
Product portfolio
Examples of products and services
Directories
Internet services
Telephony services
Digital TV
Mobile services
Gula Sidorna, Emfas.com
www.gulasidorna.se, www.emfas.com, www.passagen.se, www.evreka.se
118 767
Gula Sidorna
Gula Sidorna
REVENUES ONLINE/OFFLINE
20% online
(16%)
80% offline
(84%)
18
E
PRODUCTS Eniro’s main brands in the Swedish market are
Gula Sidorna and Din Del, where Gula Sidorna provides regional information and Din Del provides local information. Both services are available offline (printed directories and CD-ROM) and
online, primarily via fixed Internet and voice mediation.
Gula Sidorna is Eniro’s most significant product both in
terms of advertising sales and profitability. With the Stockholm
edition for 2002, Gula Sidorna has been given a new layout
designed to provide a better overview and improved readability.
The printed directory is also available on CD-ROM and sold on
compact disc as a network license. During the late summer of
2001, a project was started in Halmstad in which directory
advertising contains bar codes. With a bar code reader, the
directory becomes interactive, allowing advertisers to provide
links to current offers and more detailed information on the
Internet.
Gula Sidorna on the Internet is the most used Swedish
online service for directory information. The website contains
information about companies, organizations, county councils
and municipalities in Sweden. Various search options enable
users to seek information according to business sector,
address, area of interest and company name or via a map.
During the autumn, the map function was enhanced with services to send maps via email and to include maps on personal
home pages. There is also an e-commerce gallery on the website, which is one of the three most frequented e-commerce
sites in Sweden with more than 100,000 visitors (May 2001).
During the year, the number of visitors to gulasidorna.se averaged about 500,000 per month. In February 2002, the number
of visitors amounted to 850,000.
Gula Sidorna is also available in WAP format with search
functions by company name, directory heading or key word that
can be limited geographically. Through a partnership with
Mobile Media Group, the WAP services is now available from
all WAP phones and other portable devices. Gula Sidorna also
offers a mobile positioning service (MPS) that makes it possible using a mobile phone to search for companies in the geo-
19
graphic area in which the user is located. There are over 25,000
companies categorized by such key words as Pharmacy,
Flowers and Gas.
In May, the voice portal “Svar om Stockholm” was re-opened
under the new name 118 767. At the same time, the service
was also introduced in Gothenburg and Malmö. 118 767 offers
telephone-based information services and answers questions
about goods, services and entertainment.
Eniro’s primary B2B product is emfas.com, which is distributed to about one quarter of a million companies in Sweden. In
addition to the core information in the online service, emfas.com
provides annual reports, information on credit worthiness, economic key data, business news from the Nordic and European
markets, conference calendars and standard forms. During the
year, a project was conducted with Eniro Finland and Wer
Liefert Was? (WLW) with the result that WLW’s pan-European
platform now includes 7,000 Swedish export companies.
Emfas.com is thus strengthening its offering to Swedish companies and enabling them to search and to be found in searches among companies, products and services and to be able to
send and receive tender requests to companies in 15 European
countries.
With the acquisition of Scandinavia Online, Eniro Sverige
has added a number of strong brands to its product portfolio.
Examples of Internet and mobile services are Passagen and
Evreka.
Nordic Region: Market gains in Denmark and
integration in Finland
The Nordic region includes Denmark and Finland. Eniro is the market leader in
Finland and has a strong position as challenger in Denmark. As of January 1,
2002, this region also includes Norway, which is a new market for Eniro, added
through the acquisition of Scandinavia Online.
SALES AND PROFIT During 2001, revenues increased
by about 13 percent to SEK 651 M (575). Profit before
depreciation (EBITDA) increased to SEK 62 M (3). The
Nordic Region excluding Sweden accounted for slightly
more than 14 percent (19) of the Group’s revenues. During
2001, revenues from online operations increased by 30 percent and accounted for slightly less than 13 percent of total
revenues.
MARKET During 2001, the Danish advertising market
declined by nearly 2 percent to SEK 14.1 billion. In Finland,
the traditional advertising market was unchanged with a
value corresponding to SEK 10.2 billion. The Danish Internet
market increased by 28 percent and corresponded to SEK
203 M, while the Finnish Internet market grew by 71 percent
to a value corresponding to SEK 154 M1.
In Denmark, Eniro has a strong number two position with
an estimated market share of more than 20 percent.
Following the acquisition of Direkta, Eniro Finland is the market leader in both the offline and online segments.
DENMARK: GAINS IN COPENHAGEN Eniro has a
strong market position and is challenging the market leader,
in part by establishing a strong user base in Copenhagen.
CUSTOMERS Eniro Denmark targets small and mediumsize companies throughout the country. It is primarily the
local market that is attractive for Eniro Denmark’s customers,
since the company is the leading supplier of products and
services with local information about companies and municipal service.
PRODUCTS In recent years, Eniro Denmark has expanded
its brands to include Internet services, such as contakt.dk and
mostrup.dk, with search engines and databases. These are
provided as a package product. Using advanced editing
1 Zenith Media, December 2001 (1 USD = 10.2 SEK)
Revenues, SEK M
of which online, MSEK
of which online, %
Full-time employees at year-end
Denmark
Eniro Danmark A/S
Finland
Oy Eniro Finland AB
Oy Eniro DS AB
Norway
SOL A/S
1998
450
4
0.9
99
390
1999
529
24
4.5
90
414
2000
575
64
11.1
3
579
2001
651
83
12.7
62
1,010
Product portfolio
Directories
Internet services
Telephony services
Mobile services
Contakt, Mostrup
www.contakt.dk, www.sol.dk, www.mostrup.dk, www.kvasir.dk
Contact Svar 80 333 666
sms.sol.dk
Directories
Internet service
Mobile services
Yritystele, Kaupunki-info
www.yritystele.fi, www.suomi24.fi, www.evreka.fi
sms.haku
Directories
Telephony services
Keltaset Sivut Helsinki
0100100, 118
Internet service
Mobile services
www.sol.no, www.kvasir.no
sms.sol.no
13% online
(11%)
87% offline
(89%)
20
tools, customers can maintain and update their information via
the Internet. This has given Eniro a strong position in the market for Internet advertising.
Mostrup’s directory “Den grøne vejviser” is published in
265 of the country’s 275 municipalities and is regarded as an
effective daily tool containing local information for contacting
a municipality’s companies, residents and institutions. In
2001, Mostrup became the sole supplier for most of
Denmark’s municipalities and provides direct access through
a common database.
Contakt’s red local directories are published for major cities
and the surrounding commercial area. The first edition of
Contakt Copenhagen was published in 2000. Nearly one million copies were produced and distributed to all households. In
September 2001, the second edition of Contakt Copenhagen
was published, with significantly increased usage.
Through Eniro’s acquisition of SOL, several strong brand
names were added to Eniro Denmark’s product portfolio,
such as the Kvasir Internet service, the SOL mobile service
and the sol.dk portal.
FINLAND: STRONGER THAN EVER During the year,
Eniro became the leader in the Finnish directory media market. In November, Eniro acquired the Finnish telecom company Elisa Communication’s directory operations, Direktia
Oy, which was Finland’s second largest directional media
company. The Finnish market is highly fragmented.
This acquisition strengthened Eniro’s position in the
Finnish directional media market, particularly in the Helsinki
area, by becoming the official publisher of Suomen Keltaiset
Sivut, the Finnish Yellow Pages.
CUSTOMERS Eniro Finland targets companies and organizations that wish to reach potential customers in the B2B
and B2I segments. With both local and international products and services, Eniro Finland’s customer structure
includes both large and small companies.
21
PRODUCTS The regional directory Kaupunki-info has a
strong position in the B2I segment, while Yritystele is a brand
for national, regional and industry-specific directories for the
B2B segment. Both brands are also available as Internet services.
Eniro Finland operates a nationwide voice-mediated service
called “0100100” and a “118” directory assistance service for
Elisa and Radiolinja subscribers.
Together with emfas.com and WLW, Eniro Finland and its
B2B brand Yritystele launched a joint project that opened the
Finnish market to European companies that are customers of
WLW and Sweden’s emfas.com. In addition, Yritystele customers were able to present themselves to the German and
Swedish markets.
Central Europe Region:
Strong market positions
Eniro is the B2I market leader in Poland and has strong market positions in
Germany and other parts of Central Europe with respect to B2B services. In the
German region of Baden-Württemberg, Eniro has established a challenger position with respect to directional information in the B2I segment.
SALES AND PROFIT The Central Europe region reported revenues of SEK 1,171 M, which corresponded to just
under 26 percent of total Group revenues. Wer Liefert Was?
(WLW) was consolidated on December 31, 2000 and Eniro
Windhager Mediengruppe (Windhager) on January 1, 2001,
while the Polish operations were included starting with the
second quarter of 2001. More than 25 percent of the
region’s revenues derive from online operations. Profit before
depreciation (EBITDA) of SEK 72 M was reported for the
region.
ENIRO WINDHAGER: BREAKING A MONOPOLY
Through the acquisition of Windhager, Eniro has established
itself as an independent player with the long-term goal of creating a strong challenger position in the B2I segment in the
German market. There are about 150 directory publishers in
Germany, of which about ten are large publishers. Most are
franchise holders to DeTeMedien, a subsidiary of Deutsche
Telekom through which they gain access to brands, databases and distribution networks, while paying a substantial
license fee to DeTeMedien. DeTeMedien’s structure includes
a division in various directories, primarily local and regional
white pages and regional yellow pages with a corresponding
structure on the Internet. Most publishers avail themselves of
independent sales agencies. During 2001, Eniro Windhager
completed its commitments as a licensee of DeTeMedien
and began the transition to an independent player during the
fourth quarter.
At the time of the acquisition, Windhager had a sales force
of 71 independent sales agents. As part of the integration
process and the introduction of Eniro’s sales and management concept, the company established its own sales organization with about 150 salespersons.
2001
1,171
300
25.6
72
1,271
Revenues, SEK M
of which online, %
Number of full-time employees at year-end
Germany
Eniro Windhager
Mediengruppe GmbH
Poland
Eniro Polska S.p.z.o.o
Product portfolio
Internet services
Directories
Internet service
www.wlw.de
Eniro
www.eniro.de
Directories
Internet service
Panorama Firm
www.pf.pl
26% online
74% offline
22
MARKET Like the rest of the EU, the German economy was
characterized by lower GDP growth and rising inflation. The
traditional advertising market amounted to SEK 176 billion,
making it Europe’s largest. The German directory market
amounted to SEK 11 billion, corresponding to 6 percent of
the total advertising market1. This means that Germany is one
of the least developed markets for directional media, and the
growth potential is therefore considered substantial for both
offline and online media.
CUSTOMERS At the time of acquisition, Windhager was
the market leader in the B2I segment in the BadenWürttemberg region. The Company primarily targets small
and medium-size companies in the German B2I directory
market that wish to reach buyers with local information.
PRODUCTS During 2001, Eniro Windhager launched a
new product and established a pricing strategy for both
offline and online sales. To quickly increase awareness of
Eniro Windhager and to strengthen the company’s image
among advertisers and future users, a marketing campaign
was launched in Stuttgart and Rems-Murr that was very successful. The directories for these two areas were published
toward the end of 2001, and surveys show a high degree of
usage. Eniro’s “Telefon & Branchen Komplettbuch” is based
on the Swedish concept with three printed directories: industry listing, an alphabetic company listing, a listing of private
persons and a map section. This concept is unique in the
German B2I directory market.
Advertisers and users view the product concept very positively. Concurrent with the first edition of Eniro’s directory, an
Internet platform called eniro.de was launched with a search
engine for company information.
23
WLW: SUCCESSFUL ONLINE B2B COMPANY Wer
Liefert Was? (WLW) has changed completely from publishing printed directories to products and services for electronic media, meaning CD-ROM and Internet. WLW is one of
Europe’s leading B2B suppliers with a focus on manufacturers and industrial service companies. Users are primarily professional purchasers, who through WLW gain access
to information from 15 European countries in 11 different
languages.
WLW was consolidated by Eniro on December 31, 2000.
The company, which is based in Hamburg, is the market
leader in the B2B segment in Germany, Austria, Switzerland,
Slovenia, Croatia and the Czech Republic. WLW entered the
online market at an early stage, and in 1999, it became the
first company in the B2B segment to devote itself exclusively to online directional media. More than 75 percent of sales
are from products that did not exist five years ago.
MARKET The German Internet advertising market is valued
at SEK 1.3 billion, a decline from 2000, when the market
amounted to SEK 1.5 billion1. The growth rate for new media
in Germany has declined significantly, but this has also meant
that WLW has been able to take market shares. The German
Internet market shrank by more than half due to a combination
of weak economic conditions and low Internet penetration (35
percent in Germany, compared with 62 percent in Sweden).
The Internet advertising market corresponds to about 0.6 percent of the traditional advertising market, which is about half
of the corresponding figure for the rest of Europe.
CUSTOMERS Most customers are small and medium-size
companies. By working in several different industries, WLW
is less financially vulnerable than some competitors. WLW
targets about 150,000 of Germany’s approximately 3 million
companies.
Central Europe Region
PRODUCTS The only offline products on the market are
WLS CD-BOOK and CD-BOOK Central Europe. CD-BOOK
was introduced in 2001 and contains information about
export companies in 13 countries.
WLW’s users can search among some 400,000 companies in 15 countries via WLW’s Internet service, which provides information about product ranges, sales areas, company management, certification, etc. About one million quotation requests were sent to advertisers during 2001. At the
same time, nearly 12 million product and company searches
were registered. MyWLW is a personalized service that was
introduced in 2001. The service already has more than
20,000 registered users, which will allow WLW to start ecommerce shortly. Together with emfas.com in Sweden and
Yritystele in Finland, a joint project was started during the
autumn of 2001 that opens the door to the European B2B
market for the Nordic companies. The Nordic region became
more accessible for European companies.
CUSTOMERS Eniro Polska has developed one of the
largest and best updated databases of the country’s companies which is divided into B2B and B2I. The database contains information about nearly 700,000 companies. The company’s customers are primarily small and medium-size companies.
PRODUCTS Panorama Firm is a national yellow pages
service available in both online and offline formats. The directory is also available on a CD-ROM that can be purchased in
stores. The WAP edition is used by 25,000 persons each
month. There are also directories for niche areas, such as the
construction industry, the automotive sector, exports and
imports, pages on Warsaw in English and Warsaw for
tourists. In addition, there are directories with local B2I information. The corresponding Internet service also has a strong
position.
E N I RO POLS KA: MAR KET LEAD E R S H I P Eniro
acquired the Polish company Panorama Polska in May 2001.
The integration process is intensive. New management was
recruited, and the Eniro sales and management concept is
being introduced. In March 2002, the company’s name was
changed to Eniro Polska.
Eniro Polska was founded in 1992 and is Poland’s largest
directory company with operations nationwide. The product
and service offering includes both traditional directory operations and online operations. Poland is Eastern Europe’s
largest directory market.
MARKET The Polish economy experienced high growth
during the latter part of the 1990s. As one consequence of
austere monetary policy and indications of political turbulence ahead, private consumption has decreased, which has
affected companies’ willingness to invest. The traditional
advertising market is valued at SEK 23 billion1 and the
Internet advertising market is at SEK 125 M.
Overall, Eniro Polska is the market leader in directional
media in both offline and online forms.
24
Eastern Europe Region:
Market leader in a growth market
Eniro is a leading player in Moscow and St. Petersburg in Russia and in the Baltic
countries, Belarus and Ukraine.
SALES AND PROFIT The Eastern Europe region reported revenues of SEK 190 M (154), corresponding to growth
of 23 percent and accounting for slightly more than 4 percent
of the Group’s total revenues. The region showed an operating loss before depreciation (EBITDA) of SEK 9 M (loss: 7).
Online operations accounted for 26 percent of revenues.
OFFLINE PRODUCTS Eniro produces both regional B2I
directories and national B2B directories in all countries, as
well as an international edition of the B2B directory
Navigator.
Growth for offline services during 2001 was mainly attributable to Russia, where Eniro foresees continued strong
growth for printed products.
ONLINE PRODUCTS During 2001, Eniro launched a
new version of its B2B and B2I directories on the Internet in
both the Baltic countries and other parts of Eastern Europe.
Unlike conventional information lines or directory services,
Eniro’s service offers broader content and a more extensive
database for both fixed and mobile telephony. Eniro expects
that demand for this service will continue to increase, particularly in Russia, due to the rapid increase in the number of
mobile phones.
In April 2001, the Estonian company AS Teabeliin (1188)
became a wholly owned Eniro subsidiary. The acquisition of
“1188,” the leading voice portal in Estonia with a market share
of 44 percent, will generate synergy effects for Eniro Eesti.
2000
154
23
14.9
–7
1,037
Revenues, SEK M
of which online, %
Number of full-time employees at year-end
Belarus
JV Eniro Belfakta
Estonia
Eniro Eesti AS
AS Teabeliin
Latvia
Eniro Latvija SIA
Lithuania
Eniro Lietuva UAB
Eniro InfoMedija UAB
Product portfolio
Directories
Internet services
Business Belarus, Kontakt!
www.btb.by
Directories
Internet services
Telephony services
Ärikataloog
Kontakt!, www.arikataloog.ee, www.kontakt.ee
1188 infoabi
Directories
Internet services
Telephony services
Visa Latvia, Kontakti!
www.visalatvija.lv, www.kontakti.lv
Infoline 7 222222
Directories
Internet services
Telephony services
Visa Lietuva, Kontaktas!
www.visalietuva.lt
1588
2001
190
49
25.6
–9
1,116
26% online
(15%)
74% offline
(85%)
Russia
Eniro Moskva
Eniro S:t Petersburg
Ukraine
Eniro Ukraina
Directories
Internet services
Directories
Yellow Pages
www.yellowpages.ru
Navigator, Kontakt!
Directories
Telephony services
Kniga Mista
Eniroline 9409888
Board of Directors’ Report
The Board of Directors and the President of Eniro AB (publ), corporate
registration number 556588-0936, based in Stockholm, hereby submit the
annual report and consoli-dated accounts for the 2001 fiscal year.
ORGANIZATION The Eniro Group was established on July 1,
2000 when a number of companies with similar operations within the Telia group were grouped under the Parent Company
Eniro AB (publ).
Eniro is one of Europe’s leading companies in directional
media – offline in the form of printed directories, as well as online, for example via the Internet, voice (directory assistance) and
mobile solutions. The overall business concept is to provide
information that connects buyers and sellers whenever there is
a purchase intent and in a manner that facilitates transactions.
As of January 1, 2001, Eniro’s operations are organized in
the following regions:
Sweden Region, operations in Sweden
Nordic Region excl. Sweden, operations in Denmark, Finland
and, as of January 1, 2002, Norway.
Central Europe Region, operations in Germany, Poland, Austria
and Switzerland.
Eastern Europe Region, operations in Estonia, Latvia, Lithuania,
Belarus, Ukraine and Russia.
During 2001, Eniro published about 850 titles with a total
circulation of about 35 million. Eniro conducts operations in 19
countries.
OWNERSHIP Eniro AB (publ) has been listed on the
Stockholm Exchange since October 10, 2000. Since 2001, the
share has been listed on the Attract 40 list. A round lot consists
of 100 shares, and each share carries one vote. On July 2,
2001, the Eniro share was included in the Stockholm
Exchange’s OMX index with a weighting of 0.87 percent.
During 2001, Telia divested its entire holding in Eniro, which
on January 1, 2001 amounted to 49 percent of the total number of shares. On December 31, 2001, the number of shareholders was 5,732 (1,446).
On April 23, 2001, SEAT Pagine Gialle S.P.A. announced a
public offer to the shareholders and holders of warrants in Eniro.
SEAT withdrew its offer in July, when the required majority of
50.1 percent of the outstanding shares was not obtained.
ACQUISITIONS The market for directional media is characterized by consolidation, and Eniro is actively participating in this
structural change. During the year, Eniro carried out a number
of acquisitions. Among these, particularly:
The German company Windhager Mediengruppe, a leading
publisher of directional media in the German state of BadenWürttemberg, was acquired on January 1, 2001.
Eniro acquired 75 percent of “Svar om Stockholm” in
February and the remaining 25 percent in December. This service is marketed under the name 118 767 “Svar om Sverige.”
AS Teabellin, the leading voice portal in Estonia, was acquired in full in April. Since Eniro was previously a part owner of the
company, the acquisition did not affect Eniro’s consolidated
revenues.
The acquisition of the Polish directory company Panorama
Polska Sp.z.o.o was approved by the Polish competition authorities in May. The consolidation of the company’s accounts
began with the second quarter 2001.
Eniro’s acquisition of the Finnish telecom company Elisa
Communications’ directory operations, Direktia, was completed
in November. Payment was in newly issued shares. The acquired operations comprise Finland’s second largest player in
directional media and include publication of the official Yellow
Pages in the Helsinki metropolitan area, as well as a leading
directory assistance service.
On November 20, Eniro announced a cash offer to the shareholders in Scandinavia Online AB (publ), (SOL), to acquire all
shares in the company, which is listed on the Stockholm
Exchange O-List and on the Olso Stock Exchange. SOL is the
largest portal network in the Nordic region, with operations in
Sweden, Norway, Denmark and Finland. By December 31,
Eniro had acquired 97.9 percent of all outstanding shares.
Both Direktia and SOL were consolidated in Eniro’s balance
sheet as of December 31, 2001. The acquisitions did not affect
the Group's income statement for 2001.
26
SALES AND EARNINGS Eniro shows a continued strong
trend. Revenues for the full year increased 50 percent and
amounted to SEK 4,519 M (3,004). After elimination of acquired units, growth amounted to 11 percent, with the greatest
relative growth of 23 percent occurring in the Eastern Europe
Region.
For the fourth quarter, revenues amounted to SEK 1,897 M
(1,392), an increase of 36 percent, while growth excluding
acquired units was 9 percent for the quarter.
Online operations continued their strong growth rate in a
weak market. Revenues for these operations amounted to SEK
925 M (442), corresponding to a growth of 109 percent.
Organic growth for the full year was 41 percent, with increases
noted in all regions. Revenues from online operations now
account for about 20 percent of total revenues.
Operating income before depreciation (EBITDA) improved
by SEK 259 M or 29 percent to SEK 1,150 M (891). After elimination of acquired units, the improvement was 21 percent.
Region Sweden accounts for the major share of the year’s
results before depreciation, or SEK 1,059 M (884), an increase of 20 percent. The EBITDA margin in the Swedish operations improved to 44 percent (40) during the year.
The Nordic Region excluding Sweden, reported a substantial earnings improvement, SEK 62 M (3).
In the Central Europe Region, mainly Eniro’s B2B operation,
Wer Liefert Was?, showed an improved earnings trend.
In January 2001, Eniro acquired the Windhager
Mediengruppe, with operations in Baden-Württemberg.
Currently, the German market is largely controlled by
DeTeMedien (Deutsche Telekom), which through licenses provide a large number of licensees access to the brand, databases and distribution networks. The goal in acquiring Windhager
is to establish an independent challenger in the relatively undeveloped German market, which will require substantial and costly investments in marketing and sales. Eniro’s objective with the
Windhager acquisition is to establish a new brand and improved product portfolio and at the same time open new geographical local markets. The strategic initiatives that are included in
the planned realignment of Eniro Windhager were initiated in
the fourth quarter of 2001. The year 2002 will be characterized
by continued transformation of the company, and revenues are
therefore expected to be sharply lower than in 2001. A positive
revenue trend is expected in 2003. In conjunction with the
27
second edition of Eniro’s directories, an evaluation will be made
to determine the pace of continued geographic expansion in
Germany.
Demand in the Polish market was weak during the year,
which is the main reason for Eniro's operations showing a certain decline. Measures have been taken, which among other
effects will result in a strengthened sales organization.
Operating profit before goodwill amortization (EBITA) improved for the full year by SEK 200 M, or 23 percent, from SEK
865 in 2000 to SEK 1,065 M.
Income for the year after tax amounted to SEK 453 M (489).
OPERATING CASH-FLOW Cash flow from current operations during the year amounted to SEK 738 M.
Cash flow for the year amounted to SEK 208 M, in which the
acquisitions completed during the period resulted in a negative
impact of SEK 1,208 M on cash flow.
FINANCIAL POSITION The Group’s interest-bearing net
debt increased SEK 991 M during the year, from SEK 969 M
at January 1 to SEK 1,960 M at year-end.
At December 31, 2001, the equity/assets ratio was 54 percent, a slight improvement compared with 50 percent at yearend 2000.
The debt/equity ratio declined slightly to a multiple of 0.39
(0.40).
The ratio between interest-bearing net debt and operating
profit before depreciation was a multiple of 1.7 (1.1).
Return on equity for the most recent 12-month period was
13 percent (33).
Cash Earnings (calculated as net income for the year with
reversal of the year’s depreciation) per share amounted to SEK
5.12 (4.28), an improvement of 20 percent, while earnings per
share amounted to SEK 2.80 (3.26).
PERSONNEL The average number of employees, salaries
and compensation and benefits for senior executives are
reported in Notes 3 and 4.
PARENT COMPANY The Parent Company Eniro AB (publ)
had 35 employees on December 31, 2001.
The Parent Company’s sales, which primarily consist of
license revenues, amounted to SEK 71 M.
Board of Directors’ Report
COMPANY MANAGEMENT The Board of Directors of
Eniro AB (publ) currently consists of six members elected by
the Annual General Meeting and one representative appointed by the employees. Telia’s CEO Marianne Nivert resigned
from the Board in December 2001. According to its working
procedures, the Board of Directors should meet about six
times a year, with one meeting devoted to general strategy
issues. In addition to the ordinary Board meetings, a number
of extra meetings were held in view of the acquisitions made
during the year. The Company’s auditors participate in the
Board of Directors’ annual year-end meeting.
The Board of Directors has established two committees, a
Compensation Committee and a Nominating Committee. The
Compensation Committee prepares documentation for decisions on certain matters. The Nominating Committee’s task is
to consult the major owners and to propose names for the
next Board of Directors.
Group management consists of five persons and includes
Lars Guldstrand, President and Chief Executive Officer;
Lennart Bernard, Chief Financial Officer; Mikael Engqvist,
Chief Legal Officer; Mats Eklund, Senior Vice President,
Market and Business Development; and Bertil Levin, Senior
Vice President, Organizational Development, Business
Concept and Human Resources.
PRO FORMA INFORMATION, ETC. In this report, consolidated financial information for 2000 has been prepared pro
forma, based essentially on the Group structure that was
finalized during the first half of 2001. Detailed information
about the assumptions underlying the pro forma accounts is
available in the prospectus issued to the market in connection with the Company’s initial listing on the Stockholm
Exchange’s O-List. The prospectus can be ordered from
Eniro.
IMPORTANT EVENTS AFTER THE CLOSING DATE
Eniro’s ownership interest in SOL at the end of January 2002
amounted to 99.2 percent of the total number of shares. Eniro
has requested compulsory redemption of all outstanding shares. SOL was de-listed from the Stockholm Exchange and the
Oslo Stock Exchange on January 16, 2002.
In February 2001, proceedings were initiated against
Gulan AB and Mediaförlaget Företagstele AB, which are
Swedish subsidiaries of Tele Danmark, regarding their product
Gulan, which infringes on Eniro’s copyright-protected product
Gula Sidorna. According to a temporary injunction issued by the
Court of Appeal, the two companies were prohibited, by penalty of fine, from continuing this infringement. The main hearing at
the district court is scheduled to take place during the spring of
2002.
OUTLOOK FOR 2002 The economic trend in the near future is
characterized by substantial uncertainty. A general consensus is
that the media market will be characterized by continued weak
development during 2002, with more positive signs in the
second half of the year.
Eniro’s assessment is that sales during 2002 will show continued growth, but at a lower pace than in the preceding year.
DIVIDEND In conjunction with Eniro’s exchange listing, the
Board of Directors stated that the Company’s dividend averaged over time would correspond to about 30 percent of profit
for the year. Among other things, this assumes that the
Company is not deemed to require these liquid funds for acquisitions, for example.
PROPOSED DISTRIBUTION OF EARNINGS The Group’s
unrestricted equity according to the consolidated balance sheet
amounts to SEK 1,778 M. Transfer to restricted equity is not
required in the Group.
The following funds in the Parent Company are available for
distribution by the Annual General Meeting:
Loss for the year
–265,232,533
Balance carried forward from preceding year 1,820,259,988
Total
1,555,027,455
The Board of Directors and the President propose:
that a dividend of SEK 0.70 per share
be paid to the shareholders
123,326,666
that the remaining funds be carried forward 1,431,700,789
Total
1,555,027,455
28
Consolidated Income Statement
SEK M
OPERATING REVENUES
Gross operating revenue
Advertising tax
Operating revenues
OPERATING EXPENSES
Production costs
Sales costs
Marketing costs
Administration costs
Product development costs
Other revenues
Other costs
Operating income before interest, taxes and amortization
Note
1, 2
Jan.–Dec. 2001
Jul.–Dec. 2000
Pro forma
Jan.–Dec. 2000
4,636
–117
4,519
1,867
–124
1,743
3,212
–208
3,004
–1,282
–1,361
–275
–499
–60
33
–10
1,065
–478
–425
–125
–160
–31
10
–5
529
–848
–752
–222
–286
–55
24
865
–290
775
–64
465
–127
738
6
Amortization of goodwill
Operating income before interest and taxes
Net financial loss
Earnings before tax and minority interests
7
–83
692
–24
441
–27
711
Taxes
Minority interest
8
–242
3
–105
–1
–220
–2
453
335
489
NET INCOME
29
Eniro bakvagn engelska 02-04-11 09.50 Sida 30
Consolidated balance sheet
SEK M
ASSETS
Fixed assets
Goodwill
Other intangible fixed assets
Tangible fixed assets
Deferred tax claim
Interest-bearing fixed assets
Total fixed assets
Dec. 31, 2001
Dec. 31, 2000
6,141
48
333
295
10
6,827
2,998
23
156
55
11
3,243
23
179
1,360
176
14
82
1,834
76
1,025
72
23
40
1,236
Other interest-bearing current assets
Short-term investments
Cash and bank
Total interest-bearing current assets
Total current assets
TOTAL ASSETS
2
4
585
591
2,425
9,252
79
282
361
1,597
4,840
SHAREHOLDERS’ EQUITY AND LIABILITIES
Restricted equity
Share capital
Restricted reserves
176
3,023
150
701
Unrestricted equity
Unrestricted reserves
Net income
Total shareholders’ equity
1,325
453
4,977
1,211
335
2,397
-
5
Current assets
Stock
Work in progress
Accounts receivable
Prepaid expenses and accrued revenues
Current income tax receivable
Other non-interest bearing current assets
Total non-interest bearing current assets
Note
9
10
11
8
14
16
Minority interest
Provisions
Provisions for pensions
Other provisions
Total provisions
17
18
85
311
396
71
153
224
Interest-bearing long-term liabilities
19
2,343
1,270
20
407
286
375
335
1,403
254
188
220
282
944
Current liabilities
Accounts payable
Current tax liabilities
Accrued expenses and prepaid revenues
Other non-interest bearing liabilities
Total non-interest bearing liabilities
Interest-bearing current liabilities
Total current liabilities
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES
19
133
1,536
9,252
944
4,840
Pledged assets
Contingent liabilities
21
21
259
6
0
93
30
Consolidated cash-flow statement
SEK M
Current operations
Operating income before financial items
Note
Jan. -Dec. 2001
775
Adjustment for items not included in cash flow
Depreciation of fixed assets, excluding goodwill
Amortization of goodwill
Provisions
Unrealized exchange-rate losses
85
290
29
7
Interest received
Interest paid
Taxes paid
Cash-flow from current operations before changes in working capital
30
–122
–225
869
Cash-flow from changes in working capital
Increase in work in progress
Increase in current receivables
Increase in current liabilities
Cash-flow from current operations
–108
–133
110
738
Investment operations
Investments in subsidiaries
Investments in intangible fixed assets
Investments in tangible fixed assets
Cash-flow from investment operations
13
Financing operations
Changes in loans
Dividend
Cash-flow from financing operations
987
–101
886
CASH-FLOW
Total interest bearing assets at beginning of period
Exchange difference in liquid assets
Total interest bearing assets at end of period
31
–1,208
–37
–171
–1,416
208
15
361
22
591
Parent company income statement
SEK M
OPERATING REVENUES
Note
EXPENSES
Marketing costs
Other revenues
Other costs
Operating loss
6
Net financial loss
Loss after net financial items
7
Appropriations
Tax on current year’s loss
Taxes
LOSS FOR THE YEAR
8
Jan.-Dec. 2001
71
Mar.-Dec. 2000
-
–35
–102
0
–3
–69
–2
–2
–27
–96
–10
–12
–272
-
103
3
–265
–9
32
Parent company balance sheet
SEK M
ASSETS
Fixed assets
Shares in subsidiaries
Deferred tax claim
Interest-bearing receivables from Group companies
Total fixed assets
Dec. 31, 2001
Dec. 31, 2000
1
4,441
0
248
4,690
2,602
301
2,903
0
1,341
1
8
1,350
1,539
1,539
Interest-bearing receivables from Group companies
Cash and bank
Total interest-bearing current assets
Total current assets
TOTAL ASSETS
1,010
1
1,011
2,361
7,051
1,539
4,442
SHAREHOLDERS’ EQUITY AND LIABILITIES
Restricted equity
Share capital
Share premium reserve
New issue in progress
176
2,446
-
150
48
533
Unrestricted equity
Retained earnings
Loss for the year
Total shareholders’ equity
1,820
–265
4,177
1,078
–9
1,800
272
-
Current assets
Accounts receivable
Receivables from Group companies
Other non-interest bearing current assets
Total non-interest bearing current assets
Note
11
13
14
16
Untaxed reserves
Tax allocation reserve
Provisions
Provisions for pensions
Total provisions
17
0
0
-
Interest-bearing long-term liabilities
19
782
2,568
11
17
228
18
1
275
7
25
1
33
1,513
32
1,545
41
41
1,820
7,051
74
4,442
1,732
0
95
Current liabilities
Accounts payable
Liabilities to Group companies
Tax liabilities
Other non-interest bearing liabilities
Total non-interest bearing liabilities
Interest-bearing current liabilities to Group companies
Other interest-bearing liabilities
Total interest-bearing liabilities
20
19
Total current liabilities
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES
Pledged assets
33
21
21
Parent company cash-flow statement
SEK M
Current operations
Loss before financial items
Net of Group-internal interest payments
Net of interest paid and realized exchange differences
Taxes paid
Cash-flow from current operations before changes in working capital
Note
–69
25
–56
–1
–101
Cash flow from changes in working capital
Increase in current receivables
Increase in current liabilities
Cash-flow from current operations
Investment operations
Investments in subsidiaries
Investments in tangible fixed assets
Cash-flow from investment operations
–9
7
–103
13
Financing operations
Amortization of loans
Net change in financial receivables and liabilities with Group companies
Dividend
Cash-flow from financing operations
Total interest bearing assets at end of period
–751
–1
–752
–1,757
2,714
–101
856
CASH-FLOW FOR THE YEAR
Total interest bearing assets at beginning of period
Jan. -Dec. 2001
1
15
0
1
34
Accounting and valuation principles
GENERAL ACCOUNTING PRINCIPLES The annual
report was prepared in accordance with the Annual
Accounts Act and recommendations issued by the Swedish
Financial Accounting Standards Council and the general
recommendations and guidelines published by the Swedish
Accounting Standards Board.
ESTABLISHMENT OF THE ENIRO GROUP Eniro
AB (publ) was established in March 2000 for the purpose of
acquiring and independently operating Telia’s various directory
businesses. Through restructuring, Eniro AB (publ) acquired
virtually all of Telia’s directory operations. This restructuring
included establishing Eniro AB (publ) and the acquisition by
Eniro AB (publ) of shares in certain Telia subsidiaries. The
operations acquired by Eniro AB (publ) had been conducted
in a separate business unit within Telia since 1991. Most of
the acquisitions were completed on June 30, 2000. Certain
parts of the restructuring that are reflected in the Group’s pro
forma accounts had not been completed on June 30, 2000.
The Finnish directory operations were acquired on
September 20, 2000, and TIM Varumärken AB, which owns
certain trademarks used in Eniro’s operations and is a party
in the contract with KPN through its wholly owned subsidiary TIMI Nederlands BV, was acquired on January 17, 2001.
PRO FORMA ACCOUNTS Prior to the exchange listing on
October 10, 2000, a prospectus was prepared with financial
pro forma information. The consolidated pro forma accounts and
other pro forma information that were included in the prospectus were gathered from historical financial records for the included companies and operations that were acquired by Eniro
through restructuring as if the restructuring had taken place on
January 1, 1995.
In the interest of providing the best possible description of
the operations conducted during the year 2000, this annual
report includes information for the entire fiscal year 2000 in the
same manner as in the prospectus.
Net financial items 2000 is a pro forma indication of what the
company’s earnings would have been if the company had been
an independent entity.
CONSOLIDATED ACCOUNTS The consolidated accounts include the Parent Company and all of its subsidia-
35
ries. Subsidiaries are considered companies in which the
Parent Company directly or indirectly controls more than 50
percent of the voting rights or otherwise exercises a controlling influence.
Eniro’s consolidated accounts have been prepared in
accordance with the purchase method as described in
recommendation RR 1:96 issued by the Swedish Financial
Accounting Standards Council. This means that the assets
and liabilities of acquired subsidiaries are reported in the consolidated balance sheet at market value in accordance with
an acquisition analysis. If the acquisition price of shares in a
subsidiary exceeds the estimated market value of the acquired company’s net assets, the difference is reported as consolidated goodwill.
Untaxed reserves, which occur in the accounts of companies in certain countries, are reported in the consolidated
accounts in part as a deferred tax liability and in part as
restricted reserves. The deferred tax liability is calculated
according to the prevailing tax rate in each country.
Eniro’s foreign subsidiaries are independent foreign businesses. These companies’ income statements and balance
sheets are translated to SEK in accordance with recommendation RR8. The assets and liabilities of foreign subsidiaries
are translated at the exchange rate on the closing date, while
the income statements are translated at the average
exchange rate for the fiscal year. Translation differences arising in this manner are booked directly against consolidated
shareholders’ equity.
FOREIGN CURRENCY In the Parent Company and in
the Group companies, receivables and liabilities in foreign
currencies are reported in accordance with RR8, which
means that all receivables and liabilities in foreign currencies
are translated at the exchange rate on the closing date in the
consolidated accounts. In cases where an asset or an investment is effectively hedged against exchange-rate fluctuations
by a liability in the corresponding foreign currency, no adjustment is made in the book value.
The Board of Directors has established an exchange rate
policy that in brief means that undesirable currency risks shall
be eliminated as economically feasible for the Group.
Currency risks can be divided into transaction exposure, consisting in part of the net of the Group’s incoming and out-
Accounting and valuation principles
going cash-flows in foreign currencies and in part of the net
of financial receivables and liabilities, including interest payments, and translation exposure, which relates to adjusted
shareholders’ equity in foreign subsidiaries and associated
companies on the latest closing date.
Transaction exposure
The basic rule is that the Group’s known transaction exposures shall be hedged. Known exposure refers to invoicing,
contracts and in some cases cash flows. Each Group company shall cover its exposure through Eniro Treasury, which is
the Group’s in-house bank. This means that the Group’s
exposure in practice corresponds to the currency transactions that Group companies have conducted with Eniro
Treasury.
Translation exposure
Eniro Treasury is responsible for regularly estimating and analyzing the Group’s translation exposure. In deciding on hedging measures, the costs for the measures are weighed
against the risk reduction obtained.
VALUATION AND DEPRECIATION/AMORTIZATION
OF TANGIBLE AND INTANGIBLE FIXED ASSETS
Fixed assets are included in the balance sheet at the acquisition value reduced by accumulated depreciation according
to plan. The depreciation plan for these assets is based on
their estimated economic lifetime.
The following depreciation/amortization periods are applied:
Intangible assets
Goodwill is amortized according to plan in the balance sheet.
The amortization period is determined individually for each
acquisition taking into account the estimated economic lifetime. The amortization period varies between 5 and 20 years.
Reported goodwill is reviewed in conjunction with every
year-end report. Any write-down is charged against consolidated income.
WORK IN PROGRESS The value of work in progress
consists of capitalized production costs and sales costs. An
individual assessment is made regarding balanced amounts
for each individual directory. In the balance sheet, work in
progress is reported as a deduction for advances from customers.
PRODUCT DEVELOPMENT COSTS Product development costs, primarily for the development of new online services, are expensed as they are incurred.
REVENUE RECOGNITION Revenues from directory
operations are reported when the directory is distributed.
Production costs, as well as direct sales costs, are carried on
the balance sheet until that date, whereupon they are expensed. Directories are normally distributed annually.
TAXES In the consolidated accounts, both current and
deferred taxes are reported.
In reporting income taxes, the balance sheet method is
applied in accordance with recommendation RR9. According
to this method, deferred tax liabilities and receivables are
reported for all temporary differences between book values
and values for tax purposes of assets and liabilities.
Additional deferred tax liabilities are reported when it is considered probably that there will be loss carryforwards that
can be used in the future. Deferred tax liabilities and receivables are estimated on the basis of the anticipated tax rate on
the expected date for reversal of the temporary difference.
The effects of changes in prevailing tax rates are booked
during the period in which the change is adopted. Deferred
tax receivables are valued and reduced by a valuation reserve to the extent that the Company is unable to determine the
probability that the underlying tax receivable will be realized
within the foreseeable future.
In the pro forma accounts, standard tax has been calculated at a rate of 28 percent of consolidated income with consideration taken to amortization of goodwill not deductible for
tax purposes.
Tangible assets
Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10–50 year
Equipment, tools and fittings . . . . . . . . . . . . . . . . . .3–5 year
36
Notes
Note 1
Revenues and operating income before depreciation by
geographic business area
SEK M
Pro forma
SEK M
2001
2000
1999
4,519
3,594
925
2,409
1,916
493
651
568
83
1,171
871
300
190
141
49
98
3,004
2,562
442
2,184
1,829
355
575
511
64
154
131
23
91
2,649
2,440
209
1,887
1,721
166
529
505
24
141
121
20
93
Operating income before interest, taxes,
depreciation and amortization (EBITDA) 1,150
Margin, %
26
Sweden
1,059
Margin, %
44
Nordic, excl. Sweden
62
Margin, %
10
Central Europe
72
Margin,%
6
Eastern Europe
–9
Margin,%
–5
Other
–34
891
30
884
40
3
1
–7
–4
11
769
29
644
34
90
17
2
1
33
Total operating revenues
Offline revenues
Online revenues
Sweden
Offline revenues
Online revenues
Offline revenues
Online revenues
Central Europe
Offline revenues
Online revenues
Eastern Europe
Offline revenues
Online revenues
Other operating revenues
Total
Q4
Q3
Q2
Q3
Q2
Q1
1,059
62
72
–9
–34
1,150
581
79
–39
19
1
641
43
–10
–44
–5
–16
–32
320
15
7
–11
–18
313
115
–22
148
–12
–1
228
883
2
–5
11
891
447
77
11
10
545
29
–37
–10
0
–18
327
8
1
–3
333
80
–46
–7
4
31
Note 3
Employees
Average full-time employees
Total
Sweden
634
Denmark
334
Finland
297
Germany
378
Poland
733
Estonia
195
Latvia
138
Lithuania
184
Russia
313
Belarus
116
Ukraine
160
Other countries and regions
124
Total
3,606
Pro forma 2000
Men, %
46
60
36
58
41
19
22
29
28
27
32
50
41
Total
553
312
239
175
164
169
310
105
115
2,142
Men, %
60
42
35
24
24
26
45
33
48
42
Q1
1,093
279
386
114
25
1,897
238
145
185
27
24
619
716
149
211
37
24
1,137
362
78
389
12
25
866
Operating revenues 2000 Pro forma
Sweden
2,184
1,033
575
254
Central Europe
Eastern Europe
154
82
Other
91
23
Total
3,004
1,392
194
124
21
22
361
654
127
36
25
842
303
70
15
21
409
37
Q4
The number of employees at year-end was 4,151 (2,381).
Note 2
Revenues and EBITDA by quarter
Operating revenues 2001
Sweden
2,409
651
Central Europe
1,171
Eastern Europe
190
Other
98
Total
4,519
EBITDA 2000 Pro forma
Sweden
Central Europe
Eastern Europe
Other
Total
Total
2001
Operating income includes net exchange losses of 0.1.
Of the Parent Company’s revenues, 100% are from Group companies.
SEK M
EBITDA 2001
Sweden
Central Europe
Eastern Europe
Other
Total
Note 4
Salaries, other remuneration and payroll overheads
2001
SEK M
Parent Company
Of which, pension costs
Subsidiaries
Group total
1)
Pro forma 2000
Salary and other Payroll
remuneration overheads
29
773
802
15
5
194
43
209
48 1)
Salary and other Payroll
remuneration overheads
1
407
408
0
155
46
155
46 1)
Of the Group’s pension costs, SEK 3 M (1) relate to the Board of Directors
and the President.
Notes
Note 4 Continuation
Salaries and other remunerations distributed by country and between menbers of the board and other employees, and others
2001
SEK M
Board of Directors
Pro forma 2000
Other employees
Of which bonus to Board of
and president
Board of Directors
Directors and president
Other employees
and president
Of which bonus to
Board of Directors
and president
Sweden
Denmark
Finland
German
Poland
Estonia
Latvia
Lithuania
Russia
Belarus
Ukraina
Other countries and regions
Group total
9
1
1
13
4
1
0
1
1
0
1
3
35
225
140
76
155
95
11
8
10
27
4
2
14
767
2
0
4
0
1
7
In accordance with decisions by the Annual General Meeting regarding compensation to the
Chairman, Vice Chairman, other elected members and employee representatives and their
deputies, SEK 1,470,000 (1,057,000) was paid. Of this amount, the Chairman, Björn Svedberg,
received SEK 450,000 (450,000). Board member John Abrahamson was requested to perform
work in addition to his duties as Board member for which he received SEK 750,000 in
compensation. No fees are paid to members who are employed within the Group. Lars Guldstrand,
President and CEO, received a total of SEK 4.9 M (3.2) in compensation and other benefits. Of
this amount, SEK 1.8 M (0.9) was a bonus. The bonus to the President and CEO can amount
to at most 70% of the base salary.
5
1
1
1
0
1
1
0
1
11
SEK M
Benefits for senior executives
Termination and severance pay
The President and certain other executives in the company have contracts that provide
severance pay if the person’s employment is terminated at the company’s request. In no case
does the severance pay exceed 24 months’ salary.
Pensions
For the President and CEO, Lars Guldstrand, relating to the Company's premium for pension
insurnace corresponding to at most 43% of salary excluding bonus. During 2001 pension costs
amounted to SEK 1,559,000 (715,000). A retirement pension is calculated to be paid that
amounts to 65% of the basic salary at the age of 60.
Employees in Sweden are covered by defined-benefit pension plans. The Parent Company
and the Swedish subsidiaries follow the ITP agreement. The Group’s employees in other
countries are normally covered by defined-benefit pension plans. Payments to these plans are
normally a part of the employee’s salary. Pension commitments for Swedish employees are
calculated by PRI.
Other pro forma revenues during the first half of 2000 include SEK 18 M in pension
repayments from SPP.
EXPENSES
Other financial expenses
External financial interest
expenses
Internal financial interest
expenses
Total
Total net financial items
GROUP
SEK M
Ernst & Young, auditing assignments
Ernst & Young, other assignments
Other auditors, auditing assignments
PARENT COMPANY
2001
2000
2001
2000
3
11
4
2
0
1
0
10
-
0
-
Note 6
Amortization/depreciation
GROUP
PARENT COMPANY
Pro forma
Production costs
Sales costs
Marketing costs
Product development costs
Total
GROUP
Pro forma
2000
2001 2000
PARENT COMPANY
2001
2000
71
21
92
9
3
12
13
21
34
58
1
80
139
9
0
17
26
73
8
12
59
-
102
28
49
58
21
175 36
–83 –24
61
–27
49
166
–27
15
36
–10
Consolidated net financial items include a net exchange gain of 7.3.
Figures for 2000 are pro forma
SEK M
1
0
1
Note 7
Net financial items
INCOME
Other financial income
External financial interest income
Internal financial interest income
Total
Note 5
Auditing fees
190
129
40
8
9
8
9
2
2
397
2001
2000
2000
2001
2000
15
28
3
38
1
85
1
3
0
8
12
2
6
0
18
26
0
0
0
-
Note 8
Tax
Components of tax expense
SEK M
GROUP
Pro forma
2000
2001 2000
Current tax expense
305
Adjustments recognized for
current tax of prior periods
5
Deferred tax expense relating to
origination of temporary differences 106
Deferred tax income relating to
reversal of temporary differences –46
Deferred tax income relating
to tax loss
–128
Deferred tax income
relating to tax loss
242
Current tax expense relating
to items credited to equity
Total tax expense for the year
242
PARENT COMPANY
2001
2000
106
–103
–3
47
-
-
–20
-
-
–28
-
-
105
–103
-3
331
228
3
105
220
38
Notes
Note 8 Continuation
GROUP
Explanation of the relationship between tax expense and accounting profit
GROUP
SEK M
2001
Accounting profit
Tax at the domestic rate of 28%
Tax effect of
- expenses that are not deductible for tax puposes
- revenues that are not taxable
- amortization of goodwill that is not deductible for tax purposes
Effect of higher tax rates outside Sweden
Effect of higher tax rates outside Sweden
692
194
18
–2
53
–22
242
Components of deferred tax receivable and defered tax liability
SEK M
Acquisition value on opening date
Investments during the year
Divestment
Translation differences for the year
Total
Accumulated amortization on opening date
Amortization for the year
Divestment
Total
Residual value of other intangible fixed assets
according to plan on closing date
2001
2000
28
50
–6
6
78
8
20
0
0
28
–5
–31
6
0
–30
–4
–1
0
0
–5
48
23
GROUP
SEK M
2001
Defferred tax receivable
Relating to unused tax losses
Relating to deductible temporary differences
Deferred tax liabilites offset
Deferred tax receivable recognized in income statement
Deferred tax liabilities
Taxable temporary differences
Relating to deferred tax receivables offset
Deferred tax liabilties recognized in income statement
302
113
–120
295
The acquisition value and accumulated depreciation on the opening date
represent the values transferred when the Group was established on July 1,
2000.
Buildings and land
175
–124
51
Note 9
Goodwill
The acquisition value and accumulated amortization on the opening date for 2000
represent the values transferred when the Group was established on July 1, 2000.
GROUP
SEK M
Note 11
2001
2000
Total
3,294
3,122
340
6,756
2,039
1,167
88
3,294
Accumulated amortization on opening date
Amortization for the year
Total
Residual value of goodwill according to plan
on closing date
–296
–290
–29
–615
–230
–64
–2
–296
6,141
2,998
GROUP
PARENT COMPANY
SEK M
2001
2000
2001
2000
Sales /disposals
Total
78
80
0
8
166
15
62
0
1
78
-
-
Accumulated depreciation on opening date –7
Depreciation for the year
–8
Sales and disposals
0
–1
Total
–16
Residual value of buildings and land
150
–6
0
0
–1
–7
-
-
71
-
-
Equipment
Goodwill included in the residual value and for which amortization is
deductible for tax purposes
Denmark
258
Finland
882
Germany
823
Total
1,963
Note 10
Other intangible fixed assets
The acquisition value and accumulated amortization for 2000 represent the
values transferred when the Group was established on July 1, 2000.
39
GROUP
PARENT COMPANY
SEK M
2001
2000
2001
2000
Acquisition value for Finland on opening date
Sales and disposals
Total
226
186
–40
24
396
147
40
33
–2
8
226
1
1
-
–104
-
-
–23
–11
2
–5
–141
0
0
-
85
1
-
156
1
-
Accumulated depreciation
on opening date
–141
Accumulated depreciation for Finland
on opening date
Depreciation for the year
–94
Sales and disposals
35
–13
Total
–213
Residual value of buildings and land
183
Residual value of tangible fixed assets
333
Notes
Not 12
Leasing contracts
Contracted leasing fees relating to operational leasing contracts.
SEK M
GROUP
- Due during 2002
98
- Due between 2003 and 2006
198
- Due 2007 and later
-
Fees for operational leasing contracts amounting to SEK 132 M (52) were charged against income for the year.
Not 13
Shares and participations in Group companies
Shares and participations owned directly or indirectly by the Parent Company
Book value on
Dec. 31, 2001
Book value on
Dec. 31, 2000
Share capital, %
SEK M
SEK M
0
0
0
-
1,743
105
1,615
105
189,750
1,000
100
100
100
100
100
75
100
87
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
Name
Corp. reg. no.
Head office
Handlalokalt i Din Del AB
TIM Varumärke AB
TIMI Nederlands BV
Eniro Danmark A/S
Eniro International AB
Belfakta SP
Budapest Projekt 92 KFT
CJSC TeleMedia Ukraina
Eniro Eastern Europe Holding AB
Eniro Eesti AS
AS Teabellin
OU Ärikataloog
Eniro Estland AB
Eniro Lettland AB
Eniro Lietuva UAB
Eniro Infomedija UAB
Eniro Nederland AB
Magyar Herold Business Data KFT
OOO Eniro Rus-S
OOO Eniro Rus-M
TeleMedia International BV
TeleMedia Schweiz AG
SIA Eniro Latvija
TeleMedia Svenska AB
556572-1502
556580-8515
33.25 94 60
224595
556429-6670
1047
01-09-362834
23511074
556606-0140
10029016
10009841
10656517
556445-0921
556445-6894
UL 93-64
AB 93-888
556474-9108
01-09-164362
228896
100844
3325.9460
CH-020.3.005.530-0
000308840
556465-2013
Stockholm
Stockholm
Amsterdam
Copenhagen
Stockholm
Minsk
Budapest
Kiev
Stockholm
Tallinn
Tallinn
Tallinn
Stockholm
Stockholm
Vilnius
Vilnius
Stockholm
Budapest
S:t Petersburg
Moscow
Amsterdam
Zurich
Riga
Stockholm
No. of shares
Eniro Sverige AB
Din Del AB
Eniro Förlagslån AB
Eniro Försäljning AB
Lindgren & Co Data AB
Eniro Svar om Sverige AB
Emfas företagskatalogen HB
Gula Sidorna HB
556445-1846
556053-2409
556598-3359
556580-1965
556423-9704
556544-2331
969630-7355
969629-3753
Stockholm
Stockholm
Stockholm
Stockholm
Stockholm
Stockholm
Stockholm
Stockholm
500,000
200,000
1,000
1,000
1,000
20,000
100
100
100
100
100
100
260
260
Scandinavia Online AB
Scandinavia Online Content AB
Bilguiden Skandinavia AS
Bilguiden Norge AS
Bilguiden Danmark A/S
Bilweb Sverige AB
556551-9989
556549-0892
980858812
980858847
24224635
556546-3758
Stockholm
Stockholm
Oslo
Oslo
Copenhagen
Stockholm
44,536
1,000
272,368
50,000
500
1,000
98
100
100
100
100
100
520
-
1,000
1,000
200
24,000
1,000
1,000
2,500
510
1
100
100
3,000
100
1,000
1
1
40
40
Notes
Not 13 Continuation
Netbonus Holding AB
Scandinavia Online Passagen AB
Scandinavia Online AS
Scandinavia Online A/S
556575-7480
556556-0900
974209314
18412896
Stockholm
3,640
Stockholm
1,000
Oslo
1,383,038
Copenhagen
4,020
100
100
100
100
Netstationen A/S
Subnet ApS
Netlogin.dk ApS
Scandinavia Online Portal A/S
Din Side AS
Try Tidningar AB
Inside Finans AB
21030074
21511846
10004926
20421096
977353599
556585-4501
556546-3170
Copenhagen
667
Copenhagen
200
Copenhagen
400
Copenhagen
500
Oslo
1,800,000
Stockholm
1,000
Stockholm
1,000
100
100
100
100
100
100
100
Oy Eniro Finland Ab
Internetpalvelu Suomen Kaupunki-info Ay
Telia Kauppatori Ay
0100130-4
1100595-8
1546403-5
Turku
Turku
Turku
60,000
100
50
50
15
15
OY Eniro Ds Ab
1726828-1
Helsinki
8,000
100
0
-
Eniro Deutschland GmbH
WLW Vermögensverwaltungs GmbH
Wer liefert was? GmbH Switzerland
Wer liefert was? GmbH Austria
Wer liefert was? Spol. S.r.o. Czech Republic
Wer liefert was? D.o.o Slovenia
Wer liefert was? D.o.o Croatia
Eniro Windhager GmbH
Esenza Werbeagentur, GmbH
HRB 77757
HRB 44606
HRB 44606
CH 170.4.001.503-4
108453
62584669
Srg 98/01016
80282955
HRB 22085
HRB 21868
Hamburg
Hamburg
Hamburg
Baar
Klosterneuburg
Prague
Celie
Zagreb
Stuttgart
Stuttgart
534
85
517
90
RH B 31000
Warsaw
1,179
-
4,441
2,602
1
2
1,035,209
100
1001)
100
100
100
100
100
100
100
100
100
Total
1)
Of which, 5.1% directly owned by Eniro AB (publ).
Note 14
The following companies and operations were acquired during 2001:
Company/operation
Acquisition date
TIM Varumärke AB
Scandinavia Online koncernen
Eniro Svar om Sverige AB
OY Eniro Ds Ab
AS Teabellin 60%
Eniro Windhager GmbH
01-17-01
12-31-01
02-09-01 / 12-31-01
12-31-01
03-31-01
03-31-01
01-01-01
Legal
GROUP
SEK M
Other prepaid expenses
Accrued revenues
Total
PARENT COMPANY
2001
2000
2001
2000
176
0
176
72
0
72
1
1
0
0
Total purchase prices for the year’s acquisitions
SEK M
GROUP PARENT COMPANY
Purchase consideration including
other acquisition costs
- of which, non-cash issues
- of which, amounts not yet paid
Less liquid funds on acquisition date
Total costs for acquisitions during the year
3,800
(1,891)
(220)
(481)
1,208
41
1,712
(957)
(4)
751
Note 15
Liquid funds
Liquid funds consist primarily of cash in banks and current investments in
companies acquired on January 1, as well as in foreign units that are not
included in the Group’s central accounts system.
Notes
Note 16
Shareholders’ equity
Parent Company
SEK M
Note 18
Other provisions
Share
New
Share premium issue in
capital reserve progress
Shareholders’ equity on opening date 150
New issue
26
Dividend
Group contributions granted/received
Loss for the year
Shareholders’ equity
on December 31, 2001
176
48
2,398
Retained
earnings
533
–533
2,446
0
GROUP
2001
2000
2001
1,069 1,800
1,891
–101 –101
852 852
–265 –265
Provision for deferred tax liability
Provision for restructuring measures
Other non-interest bearing provisions
Total
51
212
48
311
104
46
3
153
-
1,555 4,177
Note 19
Liabilities to credit institutions
Share capital consists of 176,180,952 shares (150,000,000), each with a par
value of SEK 1.
Number of shares
Number of shares on January 1, 2001
New issues in conjunction with acquisitions
Wer Liefert Was?
Panorama Polska
Direktia OY
Number of shares on December 31, 2001
GROUP
SEK M
Shareholders’ equity on opening date
Shareholders’ contribution in conjunction
with acquisitions
Dividend
Translation difference for the year
Transfer from restricted to unrestricted
reserves
Net income for the year
Shareholders’ equity on December 31, 2001
2000
-
PARENT COMPANY
2001
2000
2001
2000
Liabilities to credit institutions
2,345
1,270
784
2,568
150,000,000
Approved credit limits
2,800
1,700
1,200
1,700
5,725,287
8,197,400
12,258,265
176,180,952
Interest-bearing debt has the following maturities:
Maturities for debts to credit institutions
– during 2002
Group
SEK M
PARENT COMPANY
SEK M
Total
GROUP
PARENT COMPANY
2001
2001
2,345
784
Share Restricted Unrestricted
capital reserve reserves
Total
150
701
1,546
2,397
26
1,865
99
–101
238
1,990
–101
238
457
176
3,023
–457
453
1,778
0
453
4,977
Note 20
GROUP
PARENT COMPANY
SEK M
2001
2000
2001
2000
Accrued personnel-related costs
Accrued interest
Other accrued expenses
Total
83
3
289
375
60
4
156
220
10
3
5
18
4
21
25
Accumulated exchange differences charged directly to equity amounted to
SEK 437 M.
Warrants for Eniro employees
Some 309 Eniro employees accepted an offer to subscribe for warrants
during 2000. A total of 1,500,000 warrants were issued with a subscription
price of SEK 11.30. The warrants may be exercised during the period from
June 30, 2003 to February 21, 2004 at an exercise price of SEK 133. The
warrants program is intended to enable the company to attract and retain
skilled personnel, combine the interests of management and the employees
with expectations on the part of the shareholders and to get all employees to
become involved and participate in realizing the Company’s business concept.
Note 17
Provisions for pensions and similar commitments
Note 21
Pledged assets and contingent liabilities
Pledged assets
Regarding debts to credit institutions
GROUP
2001
2000
2001
2000
– other guarantees
Total pledged assets
259
259
-
-
-
As of December 31, 2000, there were pledged assets relating to acquisitions
in progress in Germany.
GROUP
SEK M
GROUP
SEK M
Provisions for FPG/PRI pensions
Other pensions and similar commitments
Total
PARENT COMPANY
SEK M
PARENT COMPANY
2001
2000
2001
2000
75
10
85
68
3
71
0
0
-
Warranty provisions
Sureties and contingent liabilities for
subsidiaries
Sureties
Guarantee provisions, FPG/PRI
Total contingent liabilities
PARENT COMPANY
2001
2000
2001
2000
4
91
-
91
1
1
6
1
1
93
1,732
1,732
4
95
42
Audit report
STOCKHOLM, FEBRUARY 19, 2002
ENIRO AB (PUBL)
Björn Svedberg
Chairman of the Board
John Abrahamson
Lars Berg
Per Bystedt
Jan Rudberg
Bengt Sandin
Lars Guldstrand
President
TO THE ANNUAL GENERAL MEETING OF THE SHAREHOLDERS OF ENIRO AB (PUBL)
Corp. reg. no. 556588-0936
We have audited the annual accounts, the consolidated
accounts, the accounting records and the administration of
the Board of Directors and the President of Eniro AB (publ)
for fiscal year 2001. These accounts and the administration
of the company are the responsibility of the Board of
Directors and the President. Our responsibility is to express
an opinion on the annual accounts, the consolidated
accounts and the administration based on our audit.
We conducted our audit in accordance with generally
accepted auditing standards in Sweden. Those standards
require that we plan and perform the audit to obtain reasonable assurance that the annual accounts and the consolidated accounts are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the
amounts and disclosures in the accounts. An audit also includes assessing the accounting principles used and their application by the Board of Directors and the President, as well as
evaluating the overall presentation of information in the annual accounts and the consolidated accounts. As a basis for
our opinion concerning discharge from liability, we examined
significant decisions, actions taken and circumstances of the
company in order to be able to determine the liability, if any,
to the company of any Board member or the President. We
also examined whether any Board member or the President
43
has in any other way acted in contravention of the Companies
Act, the Annual Accounts Act or the Articles of Association.
We believe that our audit provides a reasonable basis for our
opinion set out below.
The annual accounts and the consolidated accounts have
been prepared in accordance with the Annual Accounts Act
and, thereby, give a true and fair view of the financial position
of the company’s and the Group’s financial position and of
the results of operations in accordance with generally accepted accounting principles in Sweden.
We recommend to the General Meeting of the shareholders that the income statements and the balance sheets of
the parent company and the Group be adopted, that the profit for the parent company be dealt with in accordance with
the proposal in the Board of Directors’ report and that the
members of the Board of Directors and the President be
discharged from liability for the financial year.
Stockholm, February 19, 2002
ERNST & YOUNG AB
Magnus Fredmer
Authorized Public Accountant
Åke Hedén
Authorized Public Accountant
Board of directors
BJÖRN SVEDBERG
Chairman of the Board, born in 1937.
MSc E E, Royal Institute of Technology
in Stockholm, Dr h c Technology,
University of Lund.
Former positions:
CEO and Chairman of Ericsson and
CEO of SEB.
Other significant Board assignments:
Member of the Board of Investor AB,
Gambro AB, SAAB, Knut och Alice
Wallenbergs Stiftelse. Chairman of
Hi3G Access AB.
Shareholding: 3,400.
PER BYSTEDT
Member of the Board, born in 1965.
MSc Econ Stockholm School of
Economics.
Main employment: President, Spray
Ventures AB.
Former positions: Executive Vice
President MTG AB, President TV3
Broadcasting Group Ltd. and ZTV.
Axel Johnson AB, Åhléns AB. Member
of the Board of Eniro AB since 18
September.
Shareholding: 0.
JAN RUDBERG
MSc Econ Gothenburg School of
Economics.
Main employment: Executive Vice
President Telia AB.
Former positions: President of Tele 2,
Vice President Nordbanken
AB, President of Enator AB, President
and Nordic Manager of Ericsson
Information Systems, Sweden and
Regional and Market manager IBM
Svenska AB. No other significant
Board assignments.
Shareholding: 0.
JOHN ABRAHAMSON
BSc Econ University of Lund.
Main Employment: Manager, Southern
Region, SEB.
Former positions: 16 years with the
SEB Group, Global Manager for
Corporate Finance and Executive Vice
President Enskilda Securities AB,
SEB’s investment bank.
Wireless Maingate AB. Member of
Faculty, Wharton International Forum.
Member of the Board of The Institution
for Economic Research in Lund.
LARS BERG
MSc Econ Gothenburg School of
Economics.
Former positions: Member of
Mannesmann’s executive management,
with specific responsibility for the
Telecom Division, President and CEO
of Telia. Formerly held various
executive positions within the Ericsson
Group.
Other significant Board assignments
in listed companies: Telefonica
Moviles, D. Carnegie AB, Ratos,
Schibsted, C-Technologies AB and
Ledstiernan AB.
BENGT SANDIN
Employee representative on the Board,
born in 1952.
Bengt Sandin previously worked as a
salesperson at Emfas and is currently
working full time as Chairman of the
local SIF union.
Shareholding: 0
MARIANNE NIVERT
President and CEO of Telia, left the
Board at her own request on
December 6 following Telia’s
divestment of its holdings in Eniro AB.
LARS GULDSTRAND
Member of the Board and President.
See Executive Management for
biographical data.
44
Executive management
LARS GULDSTRAND
President and CEO, born in 1957.
MBA California Coast University.
Joined Eniro at start.
Former positions: President of Telia
InfoMedia Reklam AB, Telia
InfoMedia International AB, TeleMedia North America LLC in the US
and Din Del AB. Member of the
Board of Eniro since start.
Shareholding: 2,000 plus
25,000 warrants.
LENNART BERNARD
Chief Financial Officer, born in
1950.
MSc Econ Stockholm School of
Economics Joined Eniro in
November 2000.
Shareholding: 600 plus
15,000 warrants.
MIKAEL ENGQVIST
Chief Legal Officer, born in 1948.
BA University of Uppsala and graduate
studies Stockholm School of
Economics. Joined Eniro in June 2000.
Warrants: 15,000.
BERTIL LEVIN
Senior Vice President,
Organizational Development,
Business Concept and Human
Resources, born in 1947.
BSc Econ University of Gothenburg,
Joined Eniro at start.
Warrants: 15,000.
MATS EKLUND
Senior Vice President, Marketing and
Business Development, born in 1960.
B Sc Econ, Gothenburg School of
Economics. Joined Eniro in
September 2000.
Warrants: 15,000.
Operative management on February 1, 2002
PETER KUSENDAL
President Eniro Sverige,
born in 1958.
15,000 warrants.
BENGT DAHL
President Eniro Danmark,
born in 1946.
10,000 warrants.
PÄR KEMPE
President Eniro East and
Eniro Finland, born in 1959
Shareholding: 1,100 plus
15,000 warrants.
ROGER ASPLUND.
President Eniro Polska,
born in 1961.
Warrants: 10,000.
45
ANDREW PYLYP
President Wer Liefert Was?,
born in 1961.
Shareholding: None.
PETER SCHULZE
President Wer Liefert Was?,
born in 1951.
Shareholding: None.
FRANZ-FERDINAND KRESS
President Eniro Windhager,
born in 1964
Shareholding: None.
Annual General Meeting
ANNUAL GENERAL MEETING
The Annual General Meeting will be held on May 14, 2002. The time and place will be announced in conjunction with the notice of the meeting.
Participation
Shareholders who wish to participate in the Annual General Meeting must
• be registered in the shareholder registry maintained by the Swedish Securities Register
Center (VPC AB) not later than May 3, 2002 and
• register their intention to participate not later than 4:00 p.m. on May 7, 2002 under the
address Eniro AB, Corporate Legal Affairs, Box 811, SE-161 24 Bromma or by phone to
+46 8 634 70 16 or fax to +46 8 585 097 25, or by mail: [email protected]
Shares held by trustees
To be entitled to participate in the Annual General Meeting, shareholders whose shares are
held by trustees must temporarily register their shares in their own name well in advance of
May 3, 2002.
REPORTING DATES
Interim Report, January to March
Interim Report, January to June
Interim Report, January to September
May 14, 2002
August 14, 2002
October 29, 2002
Production: Publicera Information AB, www.publicera.se
Print & repro: Edita Västra Aros AB
Photography: Jörgen Reimer
46
Eniro in brief
Addresses
Eniro is one of Europe’s leading players in directional media – both offline in the
form of printed directories and CD-ROM and online via the fixed Internet, voice
(directory assistance) and digital TV. Eniro is represented in 19 countries, publishes more than 850 titles, both offline and online, and operates the leading
Internet directory services in the Nordic countries.
BUSINESS CONCEPT Eniro’s business concept is to facilitate trade by providing directional information that connects
buyers and sellers.
Services target both the business-to-business (B2B) segment and users and individuals, business-to-individual (B2I).
VISION Eniro’s vision is to be the leading directional information company in Europe by being the information supplier that
businesses and individuals trust and turn to first when they wish
to buy or sell products and services.
OBJECTIVES Eniro’s overall goal is to achieve market leadership in Europe by maintaining and developing strong positions
in the markets in which the company is active. Eniro has an independent role in the marketplace and in the relationships it creates between buyers and sellers. As an innovator in the industry, Eniro meets the changing needs of users and advertisers by
creating new channels and services that facilitate trade. Eniro’s
ambition is to increase the volume of trade conducted in its marketplaces and to realize a greater proportion of the value thus
created.
SWEDEN
Tel: +46 8 634 70 00, fax: +46 8 585 090 15
Eniro Sverige AB
Gula Sidorna, Box 811, SE–161 24 Bromma
Tel: +46 8 704 35 00, fax: +46 8 585 090 37
Eniro Sverige AB
Emfas.com, Box 811, SE–161 24 Bromma
Tel: +46 8 634 71 00, fax: +46 20 77 00 12
E-mail: [email protected], Website: www.emfas.com
Din Del AB
Box 811, SE–161 24 Bromma
Tel: +46 8 634 64 00, fax: +46 8 636 64 60
E-mail: [email protected], Website: www.dindel.se
CONTENTS
DENMARK
Eniro Danmark A/S, P.O. Boks 1921, DK–2300 Copenhagen S
Visiting address: Amager Boulevard 115
Tel: +45 88 38 38 00, fax: +45 88 38 38 10
E-mail: [email protected], Website: www.eniro.dk
PRESIDENT’S COMMENTS
4–5
EASTERN EUROPE REGION
25
THE ENIRO SHARE
6–7
BOARD OF DIRECTORS’ REPORT
26
FIVE–YEAR SUMMARY OF KEY DATA
8
CONSOLIDATED INCOME STATEMENT
29
HISTORY
9
CONSOLIDATED BALANCE SHEET
30
31
DIRECTIONAL MEDIA
10
CONSOLIDATED CASH-FLOW STATEMENT
PRODUCTS AND SERVICES
11
PARENT COMPANY INCOME STATEMENT
32
GROWTH FACTORS AND OBJECTIVES
12
PARENT COMPANY BALANCE SHEET
33
PRIORITIES FOR 2002
13
PARENT COMPANY CASH–FLOW STATEMENT
34
ORGANIZATION AND PERSONNEL
14
ACCOUNTING AND VALUATION PRINCIPLES
35–36
STRUCTURAL CAPITAL
15
NOTES
37–42
BRANDS
16
AUDIT REPORT
43
ENVIRONMENT
17
BOARD OF DIRECTORS
44
18–19
EXECUTIVE MANAGEMENT
45
NORDIC REGION
20–21
ANNUAL GENERAL MEETING AND REPORTING DATES
46
CENTRAL EUROPE REGION
22–24
ADDRESSES
47
SWEDEN REGION
FINLAND
Oy Eniro Finland DS, Säterinkatu 6, FI–02600 Eesbo
Tel: +358 2 01 110 510, fax: +358 2 01 110 511
E-mail: [email protected], Website: www.eniro.fi
ESTONIA
Eniro Eesti AS, Madara 29, EE–190 03 Tallinn
Tel: +372 630 02 00, fax: +372 630 02 01
E-mail: [email protected], Website: www.eniro.ee
AS Teabeliin, Madara 29, EE–190 92 Tallinn
Tel: +372 630 03 00, fax: +372 630 03 01
E-mail: [email protected], Website: www.1188.ee
LATVIA
Eniro Latvija SIA, Maskavas 240, LV–1063 Riga
Tel: +371 702 08 00, fax: +371 102 08 21
E-mail: [email protected], Website: www.eniro.lv
47
LITHUANIA
Eniro Lietuva UAB, Zirmunu str. 68a, LT–2012 Vilnius
Tel: +370 2 361 000, fax: +370 2 361 001
E-mail: [email protected], Website: www.eniro.lt
Eniro InfoMedija UAB, Zirmunu str. 68a, LT–2012 Vilnius
Tel: +370 278 00 00, fax: +370 273 09 53
E-mail: [email protected], Website: www.eniroinfomedia.lt
RUSSIA
OOO Eniro Rus-M, Tverskaya ul. 16/2 bld.1, RU–103009 Moscow
Tel: +7 095 799 55 55/44, fax: +7 095 799 55 09
E-mail: [email protected], Website: www.yellowpages.ru
OOO Eniro Rus-S, Shpalernaya ul.36, RU–191123 S:t Petersburg
Tel: +7 812 279 82 10, fax: +7 812 279 82 40
E-post: [email protected], Website: www.eniro.ru
BELARUS
JV Eniro Belfakta, Mendeleeva 13, BY–220 037 Minsk
Tel: +375 17 235 35 15, fax: +375 17 235 23 43
E-mail: [email protected], Website: www.eniro.by
UKRAINE
Eniro Ukraina, Lesi Ukrainki blvd. 34, UA–01133 Kiev
Tel: +380 44 295 33 64, fax: +380 44 573 97 57
E-mail: [email protected], Website: www.eniro.com.ua
GERMANY
Wer Lifert Was? GmbH, P.O.Box 100549, DE–20537 Hamburg
Visiting address: Normannenweg 16–20
Tel: +49 40 25 440 0, fax: +49 40 25 440 100
E-mail: [email protected], Website: www.wlw.de
Windhager Mediengruppe GmbH, Holderäckerstr. 4, DE–70499
Stuttgart
Tel: +49 711 8 369 0, fax: +49 711 8 369 105
E-mail: [email protected], Website: www.windhager.de
POLEN
ul. Domaniewska 41, PL–02-672 Warszaw
Tel: +48 22 542 2000, fax: +48 22 542 2001
Website: www.pf.pl
A N N UA L R E P O R T 2 0 0 1
Tel: +46 8 634 70 00, Fax: +46 8 585 090 15

annual report 2001

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