ANNUAL REPORT 2002 - unideb.huoktato.econ.unideb.hu/domician/Downloads/eset/Celemi... · 2006-07-29 · Decision Base™, Apples & Oranges™ and Tango. Celemi’s off-the-shelf business

1Copyright © 2003 by Celemiab Group AB. All rights reserved.

ANNUAL REPORT 2002



This was a year of success and comeback. After a difficult2001, with losses, restructuring and cost cutting, we turnedaround the company with a record-breaking operating profitof SEK 7,2 million. Despite the challenging market condi-tions, I’m happy to report that we have now establisheda solid platform for profitable growth.

During the year, we continued to fine-tune our cost struc-ture, especially on overheads and marketing. We organizedinto two global business areas, Celemi Learning Businessand Celemi Learning Consulting. In combination with anew management team and strategic dialogue throughoutthe organization, we have reached alignment and commit-ment to the corporate vision and strategy.

Our Intangible Assets Monitor for 2002 further supports thepicture of a stable, efficient and profitable organization. Forthe first time since introducing the monitor, we reached ouroverall targets in every category. However, there is alwaysroom for improvement and during 2003 we will continue tostrengthen our internal systems and structures.

“To partner the world’s leading organizations inmaking change happen”

This might not be the type of vision that you would expectfrom a small, modest Swedish company, but the fact is thatwe are already living it. During 2003 we will continue todevelop relationships with clients and partners, continu-ously finding new areas to apply our learning solutions. Wehave developed solutions addressing business ethics for thefirst time and I’m proud to count Skanska – the secondlargest construction company in the world – as one of ournew clients in this field. Ethics are a growing concern in theglobal business community. In Celemi they are an integralpart of our values.

Looking ahead, the situation in the Middle East and thespread of SARS are having an impact on the world economy.Nevertheless, in times like these it becomes even more im-portant for companies to mobilize their people. Celemi’slearning solutions have been attributed by clients to have amajor effect on their bottom line in terms of increased rev-enues, more efficient operations, and more motivated andbetter equipped employees. It´s about powering success, andwe are there to help you do that.

Sustainable growthwithout compromising profitability

Arne Leeb-Lundberg, CEO

CONTE NT

Letter from CEO 3

Organization 4

Client case – Ping An 6

Client case – DeLaval 8

Intangible assets 10

Financial information 14

Clients and partners 16

Awards 17

Board of directors 18

Locations 19



CELEMI LEARNING CONSULTING

Celemi Learning Consulting is at the forefront of tailor-made learning solutions designed for strategic communi-cation and change implementation. As a partner in learn-ing, the consultancy team works closely with clients toassess their strategic objectives, then design a learningsolution that leads to the desired understanding and actions.

Celemi’s tools and methodologies are applicable to avirtually unlimited number of business issues and con-texts. Some examples are implementing a new strategy,launching a new product, building a brand, or leveragingexisting systems and processes.

During 2002 the consulting business had a Europeanfocus, operating out of three locations: UK, Belgium and

1. LEARNING ASSESSMENT

2. LEARNING WORKSHOPS

3. PROGRAM PRESTUDY

4. LEARNING DESIGN AND DEVELOPMENT 5. IMPLEMENTATION 6. EVALUATION 7. FOLLOW-ON

Analysis of existing change/communication/training and development issues.

Definition of strategic and tactical learning needs in cooperation with senior management.

Research of strategic challenges.Recommendation of learning programs, including deliverables, timelines and fees.

Design and development of learning program, applying:• unique learning

methodology• leading learning tools• business issue

experience

Train-the-Trainers and support materials for internal facilitators.Rapid global multi-language roll-out experience.

Tangible and intangible measures.

Specific tools within focused areas.Keeping up the momentum.

CE LE M I LEAR N I NG CONSU LTI NG: VALU E CONTR I B UTION PROCESS

Celemi Learning Consulting helps clients solve specificbusiness issues via the design of tailor-made learningsolutions.

ORGAN I ZATION

About Celemi

Organization and directionWith more than 35 years of experience, Celemi continuesto help large organizations quickly and efficientlycommunicate key messages and mobilize thousands ofpeople to act in line with corporate strategies and goals.Hands-on business simulations and tailor-made learningsolutions help people understand the big picture and seehow they as individuals and teams can make a difference– a prerequisite for strategic change and visible results.

During 2002, Celemi organized into two business areas:Celemi Learning Business and Celemi Learning Consulting.Through these two areas, Celemi serves clients and partnersin more than 30 countries. Offices are located in the US, theUK, Belgium, Sweden and China. Combined with a largenetwork of partners around the world, Celemi offers extensivelocal presence and support for its global clients.

CELEMI LEARNING BUSINESS

Celemi Learning Business is one of the market leaders forboard-based business simulations. Through these solu-tions, people build practical knowledge around businessand management concepts, thus enhancing capabilitiesand boosting the performance of organizations. The wideportfolio of products covers areas such as knowledgemanagement, business finance, service, marketing andsales. Among the bestsellers are well-known brands likeDecision Base™, Apples & Oranges™ and Tango.

Celemi’s off-the-shelf business simulations are soldthrough a network of Celemi Solution Providers (CSPs).During 2002, the CSP network was being managed anddeveloped primarily in four territories: Americas, Nordic,Northwest Europe and China.

In 2003, a Celemi office has been established in Chinaand the business area will continue to strengthen itspresence in key markets through alliances and new CSPpartnerships. The network of certified Celemi facilitatorsis expanding, and Celemi is boosting its deliverycapacity in the marketplace through a well-definedaccreditation process and scheduled events. Continuousquality control secures high impact deliveries of Celemi’sbusiness simulations.

Through seamless cooperation, the experienced team ofCelemi people and partners work across borders andbusiness areas to meet the needs of global clients.

CELEMI LEARNING BUSINESS

CELEMI LEARNING CONSULTING

CELEMI SOLUTION PROVIDERS

STRATEGIC PARTNERS

CELEMI CONSULTANCY TEAM

GLOBAL CLIENTS

Sweden. Through global clients in Europe, the Celemitailor-made solutions are being spread and used bypeople worldwide. Last year, the business area continuedits strategic partnerships with Siemens Business Services,IBM Business Consulting Services and PCI:Live, andestablished a new partnership with KPMG in Belgium.

In 2003, Celemi Learning Consulting will continue tostrengthen its position in existing European markets.Through the office in Belgium, the business area willmove more aggressively into the German market.A dedicated team will provide a focused presence theretowards the end of the year. Celemi Learning Consultingwill also continue the expansion of offerings andpartnerships to meet the demands of its clients.

MISSION

Celemi designs learning solutions that rapidlyimprove business performance through develop-ing people’s motivation, skills and knowledge.

VISION

To partner the world’s leading organizations inmaking change happen.

More about Celemi on our new website: www.celemi.com

In-house e-learning capabilityCelemi has expertise using a variety of media and formatsbased upon objectives and implementation considerations.Simulations, WorkMats™, DialogMats™, learning guides,e-learning and films are just some examples. By acquiringan e-learning company in March 2003, Celemi has all therequired resources in-house for developing a wide rangeof cost-effective e-learning solutions.



The business simulations at Ping An

LIVON™ – DIFFERENTIATE OR DIE

Discover what it takes to be “glocal”: to adapta global corporate strategy to local marketconditions. Step into the shoes of a retailer andcompete for customers in a growing market.The overriding challenge is to build and retaina profitable customer base by deciding on amarket position and capturing it in the mostcost-effective way.

DECISION BASE™ – PULLING IN THE SAME DIRECTION

Experience the strategic business and financialfundamentals of navigating a capital-intensivecompany over a ten-year period. Competition isharsh and the marketplace is rapidly changing.The overriding challenge is to make the rightinvestments at the right time – and to get therequired return.

TANGO – BUSINESS FROM KNOWLEDGE

Learn about the business drivers and criticalsuccess factors of a knowledge-intensiveorganization. Compete for clients and people ina rapidly changing marketplace. The overridingchallenge is to develop both intangible andtangible assets, and secure the long-term returnof the company.

APPLES & ORANGES™ – CREATING VALUEIN YOUR BUSINESS

Develop a real understanding of businessfinance to increase the ability to use time andmoney where they do the most good. Theoverriding challenge is to build productivity andprofitability to meet tough demands from allstakeholders.

The benefits of simulationsThe purpose of any simulation is to let you experimentwith reality – without ruining your business. A simula-tion imitates a system, like a business, in such a waythat you can try out different strategies and workingpractices: “What would happen if...?”

As a learning tool, simulations have become popular.But for good reasons, there has been a growingskepticism about their actual value. Too often, simula-tions fail to deliver the results for the simple fact thatthey don’t credibly translate to real life. It pays off toevaluate simulations wisely – and to watch out forpretenders. For more on quality assessment of simula-tions, see the Celemi website at www.celemi.com.

and compete as you learn. I think it’s a very effective wayof learning”, continues Mr Lin. Through the trainingparticipants are building relations that continue beyondthe seminars. There is a lot more cross-functionalcooperation and knowledge-sharing in the companytoday. In addition, the simulations support the facilitatorsin providing a great learning experience, and this boostsconfidence and supports personal development. Goingforward, further evaluations will be made in the organi-zation in terms of improved business performance.

Learning as a marketing toolAfter the success internally, the plan is to offer trainingto Ping An clients in 2003. Initially, ten clients withabout 250 managers will be invited to go through thesimulations. Using learning as a method to build clientrelations and add value is a great marketing tool. Thisis an area where Celemi has a lot of experience inhelping clients, such as developing learning tools forproduct launches in the pharmaceutical industry.

A prosperous partnershipPing An sees Celemi as a dedicated partner with localpresence through its office in Shanghai. Celemi providescontinuous support and consulting to help the universityincrease the value of its offerings. One example is bysecuring a logical learning flow throughout the wholemanagement program, which includes additionalmodules to the simulations. Celemi is also a discussionpartner for customizing the facilitation of the seminarsto the specific needs of Ping An.

Going into the future, Ping An University and Celemiwill continue to work closely together. Additionalsimulations will be offered and translated into Mandarin,meeting the growing demand internally and externally.

Competence developmentthat boosts performance at Ping An

CE LE M I LEAR N I NG BUSI N ES S – CLI E NT CASE

LEADING INSURANCE COMPANY IN CHINA

Established in 1988, Ping An was the firstshareholding insurance company in China.Among its major shareholders are Hong-kongShanghai Banking Corporation (HSBC), MorganStanley and The Goldman Sachs Group. Today,Ping An is the second largest insurancecompany in the Chinese market, with 230,000employees and agents offering a full range ofinsurance services to its clients.

A corporate universityHaving highly competent and professional people onboard is one of the key success factors in today’s market-place. Continuous competence development and traininghave become important strategic tools. Large organiza-tions around the world establish corporate universities toenhance capabilities and boost performance.

Launched two years ago, Ping An University was the firstcorporate university in the Chinese insurance industry.It was established to provide internal management trainingto further develop the business skills of managers and toincrease their value contribution in the organization.The long-term goal is to open the university externally tothe Chinese insurance industry as well as to clients.

For the university to be successful, the quality andefficiency of their training was critical. Early on Ping Anresolved to go beyond traditional lectures and offerbusiness simulations. They strongly believe in peoplemeeting face-to-face and learning together, and thereforeare restrictive about the use of e-learning solutions.Ping An University decided to introduce board-basedbusiness simulations as a new learning method that wouldenable teamwork, discussions, creative thinking, and asafe environment for trial-and-error. After a thoroughevaluation process of potential new partners, last yearPing An chose Celemi to establish a partnership.

Management training and facilitationFrom June 2002, activities moved forward at a rapidpace. The next month in Shanghai, the university held aseminar for a selection of managers to demonstrate thesimulations and to market its services internally. This wasfollowed by a Discovery session in August, whereadditional managers had an opportunity to experiencethe new learning method.

To start off with, Ping An University targeted 2,000managers and included four of the Celemi simulations.Being an organization with many local units that aremanaged within a corporate framework, Livon™ was anatural first step, letting managers explore and discoverwhat it takes to be “glocal”. Decision Base™ allowedpeople to experience all the strategic business fundamentalsof running a company. Through Tango further insightswere reached about critical success factors in running aknowledge organization such as Ping An. In addition,Apples & Oranges™ has been offered by the universitywith the purpose of helping managers provide theirco-workers with a big picture understanding of the business.All seminars are being held in Mandarin, and the Celemisimulations have been translated – a process that hasbeen carefully managed to secure the learning concept.

The internal Ping An team of facilitators quickly got upto speed after going through the Celemi AccreditationProgram, which has been designed to secure high qualitydeliveries. Becoming a facilitator at the university hasgenerated a lot of interest, and in sharp competition agroup of ten people was selected in dialogue with Celemi.

Rated number oneLast year, 500 managers at Ping An participated in theCelemi simulations, and in 2003 an estimated 700managers will attend the seminars. The results this farhave been great. “Recently, an internal survey among alldepartments showed that the university was rated numberone in terms of customer satisfaction”, says Chris Lin,Vice Director at Ping An University. After experiencingthe simulations once, people want to come back formore. “The Celemi learning methodology is interestingand appealing: to sit down and think, discuss, plan, play

Celemi – well-known in ChinaCelemi is a widely recognized company in China.Contributing to this is Asia’s 2001 “CFO of the Year”,Mrs. Han Ying of AsiaInfo. She has great experienceand knowledge of Celemi’s learning methods, whichshe promotes to CFOs of large Chinese organizations.

Motorola, Hewlett-Packard, Ericsson and Siemensare examples of other organizations using Celemisimulations in different management trainingprograms in China.



After testing and finalizing the program, it was translatedinto eleven languages. The implementation was madethrough a cascade model. Managers first go through theprogram as participants, and then act as facilitators fortheir co-workers. As Mr. Norén observes: “The commit-ment from top management is critical for success.”Having all managers go through the program themselvesdemonstrates its level of importance to the organization.

Buy-in and commitmentThe learning program has been extremely successfuland has resulted in great commitment among participants,irrespective of nationality and background.

Value is gained through the logical learning flow andthe clever way of packaging and presenting informationto convey key messages. Various assignments sparkdiscussions and guide the participants through thestoryline, step by step. “To work in teams, using theCelemi learning method, makes people think simplyand down to earth,” says Hans G. Ekdahl, Chairman ofthe board and former executive president at DeLaval.Another DeLaval participant notes, “you can practicallysee the company culture grow physically during alearning session, it’s fascinating”.

As a result of the Celemi program, actions are beingimplemented and individuals are taking responsibilityfor making things happen.

Initially, the learning program was run with 1,500 people.After successful implementation, all 4,800 employeeswill participate in the program, which is planned to becompleted by September 2003.

THE LEARNING PROGRAM

The DeLaval learning program consists of fourmain parts, divided into two learning sessions ofapproximately two hours each:

PART 1: EACH ERA BRINGS ITS OWN CHALLENGES

Examining the past and the present (market trends,customers, competitors and key milestones) to discoverwhere DeLaval is coming from and what the company isup against now and in the future.

PART 2: THE WAY FORWARD

Exploring the new organization and the rationale behind it.

PART 3: START WITH THE CUSTOMER

Studying different customer interactions. Discussing theconditions in place, and what it takes in terms of cross-functional co-operation to better meet customer demands.

PART 4: TAP THE POTENTIAL

Brainstorming and translating ideas into actions in linewith the company vision, mission and strategy. Settinggroup and individual action plans to be followed up bymanagers.

The learning sessions are run with groups ofapproximately 20-30 people at a time. In eachsession, participants work in teams of fouraround the learning material. The great benefit isin the discussions within the smaller teams, aswell as in group discussions between all teamsand the facilitator.

The material consists of four WorkMats™, one ofthe many media that Celemi uses when designinglearning solutions. They are large posters withvarious assignments that guide the discussions.

The program also includes a facilitator manualand “train-the-trainer” seminars to supportmanagers in their roles as facilitators.

The Celemi learning method is extremelyefficient, the result is great and reallydemonstrates how good the program is.”

Hans G. EkdahlChairman of the board and former executivepresident, DeLaval

“

Strategic communication thatmakes change happen at DeLaval

CE LE M I LEAR N I NG CONSU LTI NG – CLI E NT CASE

A new organizationIn 2002, DeLaval was facing a challenging organiza-tional restructuring due to changing market conditions.In the mature markets of the dairy farming industry, thelast 20 years have brought an accelerating trend towardsfewer but larger farms. Clients are looking for systemsolutions rather than products and people’s milkconsumption is changing. In addition, the industry hasbeen negatively affected by the so-called mad cow andfoot-and-mouth diseases.

In order for DeLaval to keep the top market position,flexibility, efficiency and customer focus were required.Success would include acting as one company towardsthe market and sharing knowledge and best practicesthroughout the organization.

“There were many good reasons to change the organiza-tion. The challenge was to move from a federation ofhighly independent local companies into an internationalone-company organization and culture,” says DeLavalproject manager Anders Norén.

Top management inititated a number of projects, packagedas the “Columbus” program, that resulted in a neworganizational structure with customer focused processes.

WORLD-LEADING COMPANY

DeLaval, owned by Tetra Laval, is a world-leadingproducer of equipment for the dairy farmingindustry. From the start it was built up as aninternational organization with local companiesall over the world to be close to the customer.A high degree of independence has characterizedthese companies. Today DeLaval has 4,800employees in 50 companies and 110 countries.

Restructuring an organization creates conditions forpositive business development. At the same time, thereis a risk involved. What if the company does not geteverybody on board? What if people can’t see theimplications of the necessary changes and understandwhat they need to do differently?

One of the key challenges in implementing change ismotivating and mobilizing people. To ensure effectivestrategic communication around the new organization,DeLaval turned to Celemi for help.

Creating a tailor-made learning programThe purpose of the Celemi learning program was toprovide the important and necessary information in sucha way that the DeLaval people were motivated to changeand take the required actions. With a historically strongfinancial situation and market position, it was importantto explain the changing market conditions and the financialimplications – the reasoning behind the organizationalchange. People should also be given an opportunity toexamine the new organizational structure and discover howit supports the business. Finally, it was about deciding onactions and next steps to make it all happen.

To help clients implement organizational change,Celemi does not act as a traditional change managementconsultancy. Rather, in close cooperation with the client,Celemi develops learning tools that enable managers toefficiently communicate with their co-workers – tomake change happen.

The Celemi approach to designing a tailor-made learningprogram starts with a draft outline phase defining theflow and key content. The details of the final materialscan only be specified when the project team is furtherinto the development. DeLaval experienced this initialproject phase to be a bit of a “black box” – a commonchallenge Celemi faces when working with first-timeclients. The benefit of Celemi’s solutions in action canbe tricky to convey to somebody who has never experi-enced them hands-on. Moving through the project, withresearch, pilot tests, design and development, the closecooperation between DeLaval and Celemi developedinto a very positive and successful experience.



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Being a pioneer in the field, seven years agoCelemi first presented its Intangible assetsmonitor. Today, Celemi continues to complementits traditional financial statements with measure-ments of its knowledge assets in three areas:Clients, Organization and People.

Measuring and monitoring intangible assets has bottomline business benefits, and that is the real value of ourmonitor. While traditional financial statements provideus with a snapshot of past performance, the monitorenables us to see how we are positioned for the future;it is a “lead indicator”. It is also a reminder of what isdriving the performance of our company.

It is interesting for the Celemi stakeholders to see whetherour intangible assets are increasing in value and are beingutilized efficiently. This can be established with somecertainty and is the aim of the monitor.

Overall reviewOur new streamlined organization and the measures takento improve operational efficiency are clearly showingresults. For the first time since introducing the monitor,we reached our overall targets in all categories, tangibleas well as intangible, as indicated by the green rating(p. 12-13). It is important to note that our strategic targetsfor the monitor were originally set based on a continuousgrowth with more people and higher revenues. Nearlyall the red indicators for 2002 are in the area of growth/renewal, and they are mainly a result of the cost-cuttingand streamlining of the business that has taken place.

To the right, you can find some highlights from themonitor with graphs showing the development over thepast six years. On the following two pages, the monitor ispresented in its full version.

Intangible assets 2002

INTANG I B LE ASSETS

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O U R C L I E NTS OU R O R GA N I ZAT I O N OU R P E O P LE

IMAGE ENHANCINGCLIENTS (%)

REVENUE/CLIENT(TSEK)

REPEAT ORDERS (%)

R&D/REVENUES (%)

REVENUES PER ADMINSTAFF (TSEK)

ROOKIE RATIO (%)

AVERAGE PROFESSIONALEXPERIENCE (YEARS)

VALUE ADDED PEREXPERT (TSEK)

PEOPLE SATISFACTIONINDEX (%)*


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We continue to get a very large share of our business from imageenhancing clients. Our list of references is impressive and helps us togain access to new clients. Our large investments in R&D in the late90s mean that we now have a very comprehensive toolbox with well-tested products and concepts. These can be applied and customized inmultiple ways and are continuously being used in new areas. There-fore, over the past couple of years we have not needed to invest in ourtoolbox to the same extent. Growth/renewal indicators related to ourpeople show the transformation Celemi is going through in terms ofhaving more experienced, knowledgeable and senior people on board.

EFFICIENCY

Profit margin is still below target, but we have made some greatimprovements in the area of efficiency. The increased revenue perclient shows that we are penetrating our accounts more thoroughly.We are also better at covering costs for administrative staff, whichis reflected in our financial figures. Regarding our people, the valueadded per expert nearly doubled from last year, to reach our highestfigure ever. This can be contributed to our experienced team of peopleand improved ways of working across business areas and businessunits. At the same time, streamlining an organization puts highdemands and pressure on people. Increased cooperation in globalteams has helped us balance the workload of individuals.

STABILITY

Here, we can see improvements in all categories. A consistently highscore on repeat orders reflects our high level of client satisfaction.The decreasing share of revenue from our five largest clients ispositive and makes us less vulnerable. Our stability is improved byhaving more experienced people in the team: our rookie ratio isdecreasing and seniority is increasing; however, the median age isstill on target. Better alignment, commitment and motivation amongour people are indicated through our people satisfaction survey.Further improvement in people satisfaction is desirable, though, andis a prioritized area for the management team.

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* A new people satisfaction survey was introduced in 2000,which is not comparable to the survey previously used.

Values in line with or greater than targetValues less than 80% of targetValues in between red and green

Highlights from the monitor

Looking aheadWe have come a long way during 2002, reaching stability,efficiency and profitability in the organization. Havingthe right conditions in place, we expect to deliversustainable growth without compromising profitabilityin the years to come.

200220012000



INTANG I B LE ASSETS

The cells in the Monitor arecolored green ( ■ ) if the indicatoris equal to or greater thanCelemi’s strategic plan target.Red cells ( ■ ) indicate valuesless than 80% of target.Yellow cells ( ■ ) indicate valuesin between.

OUR ORGANIZATION (Internal structure) 2002 2001 2000(overeall rating year)

GROWTH/RENEWAL

Organization enhancing clients (5, 18) 16% 13% 8%

Revenues from new products (22) 17% 16% 26%

R&D/revenues 10% 9% 9%

Intangible investments % value added (13, 28) 29% 40% 9%

EFFICIENCY

Proportion of admin staff (2, 20) 13% 11% 12%

Revenues per admin staff TSEK (2, 17, 23) 16 006 14 803 12 694

STABILITY

Admin staff turnover (1, 2) 14% 63% 17%

Admin staff seniority, years (2, 26) 6 4.8 4.2

Rookie ratio (17, 25, 26) 8% 21% 41%

Celemi intangible assets monitor 2002

1. Number of admin staff leaving duringthe year divided by number of adminstaff at beginning of year.

2. Admin staff: employees other thanexperts (9).

3. Experts’ average professionalexperience in number of years.

4. Revenues from client projects whereCelemi’s experts learn as % of totalrevenues.

5. Clients: excludes clients onlypurchasing Celemi publications.

6. Education level at year-end:Employees with primary education = 1,secondary = 2 and tertiary = 3.

Tangible assetsOUR FINANCIAL CAPITAL 2002 2001 2000(overall rating year)

GROWTH/RENEWAL

Equity growth 49% -5% 67%

Net investment ratio (15) 13% 9% 7%

EFFICIENCY

Profit margin (19) 5% -21% 2%

Net return on equity (16) 21% -141% 8%

STABILITY

Solidity (27) 44% 28% 32%

Liquid reserves no. days (14) 64 54 19

Intangible assetsOUR CLIENTS (External structure) 2002 2001 2000(overall rating year)

GROWTH/RENEWAL

Revenue growth -10% -5% 8%

Image enhancing clients (5, 12) 68% 68% 41%

EFFICIENCY

Revenues per client (5, 24) 586 537 354

STABILITY

Client satisfaction index (30) 5 5 5

Repeat orders (21) 74% 64% 78%

Five largest clients (5, 10) 34% 42% 39%

7. Number of experts leaving during theyear divided by number of experts atbeginning of year.

8. Number of experts with a tertiarydegree divided by total number ofexperts.

9. Experts: Employees working directlywith client projects. Top managersare regarded as experts.

10. Revenues from five largest clients as% of total revenues.

11. Growth over last year in total numberof years of professional competence.

12. Revenues from clients that improveCelemi’s image or give referrals as %of total revenues.

13. Intangible investments in R&D,marketing and IT, charged as cost innormal P&L as % of value added.

14. Cash reserves in number of days,assuming normal business.

15. Investments in tangible fixed assets as% of total fixed assets.

16. Profit after 28% tax divided by equity.

17. Number of employees, two definitions:Average number of employees duringyear for efficiency indicators, year-endnumbers for growth/renewal andstability indicators.

18. Revenues from clients that improveCelemi’s organization, bring R&D orprojects that can be leveraged as %of total revenues.

19. Profit before tax divided by total revenues.

20. Number of admin staff divided bynumber of total staff.

21. Number of clients out of 50 largestclients who also bought from us lastyear (%).

22. Revenues from products and conceptslaunched less than five years ago as% of total revenues.

23. Total revenues divided by averagenumber of admin staff.

24. Total revenues divided by total numberof clients.

25. Number of employees with less thantwo years’ seniority as % of total staffat year-end.

26. Seniority: Number of years as Celemiemployees.

27. Equity divided by total assets.

28. Value added: The value produced byCelemi’s employees after payment toall outside vendors.

29. Share of people that score 4 or 5 ona five-grade scale.

30. Scale 1-6, where 6 is the highest.

OUR PEOPLE (Competence) 2002 2001 2000(overall rating year)

GROWTH/RENEWAL

Average professional experience, years (3, 9) 13.7 11.8 10.1

Competence enhancing clients (4, 5) 25% 41% 44%

Growth in professional competence (11) -3% -25% 18%

Experts with tertiary degree (6, 8, 9) 89% 84% 75%

EFFICIENCY

Value added per expert TSEK (9, 17, 28) 1 224 629 813

Value added margin on sales TSEK (28) 52% 33% 48%

STABILITY

People satisfaction index (29) 69% 45% 48%

Expert turnover (7, 9) 20% 38% 16%

Expert seniority, years (9, 26) 6.9 5.5 4.0

Median age all employees, years (17) 41 39 39



Celemiab Group AB

F I NANC IAL I N FOR MATION

CELEMI GROUP 1998-2002

VALUE ADDED STATEMENT 2002 2001 2000 1999 1998

Total revenues 120,0 133 .2 139.6 128.9 105.2

Cost of goods and services purchased -58,2 -89.2 -73.0 -65.1 -55.3

Total value added 61,8 44.0 66.6 63.8 49.9

– used for:

Staff remuneration, excl. R&D work (49,8) (65.4) (56.4) (50.2) (33.1)

Depreciation on equipment, etc. -3,1 -4.0 -4.0 -3.6 -3.1

Net interest -0,2 -0.2 -0.5 0.2 -0.9

R&D development, own time + outlays -2,5 -2.5 -3.4 -8.8 -12.6

Profit before tax 6,6 -28 2.3 1.3 0.2

Tax -0,7 +1,4 -0.6 -1.6 -0.4

Net profit 5,9 -26,6 1.6 -0.3 -0.2

KEY INDICATORS 2002 2001 2000 1999 1998

Value added % of sales 52% 33% 48% 49% 47%

Net return on equity after tax 21% -141% 8% -3% -2%

Value added/employee TSEK 1 066 557 724 746 641

Value added/expert* TSEK 1 224 629 813 892 802

Celemi – a five year review

CONSOLIDATED INCOME STATEMENT

2002 2001Sales 120 044 133 230Cost of sales -109 788 -157 050

Gross margin 10 256 -23 820

Depreciation according to plan 3 092 -3 964

Operating profit 7 164 -27 784

Financial income and expenses

Interest income 2 054 1 011Interest expenses and otherfinancial transactions -2 641 -1 201

Profit before tax 6 577 -27 974

Tax -687 1 397

Net profit for the year 5 890 -26 577

CONSOLIDATED BALANCE SHEET

ASSETS 2002 2001

Fixed assets

Intangible fixed assetsGoodwill 7 080 8 661

7 080 8 661Tangible fixed assetsEquipment 3 001 3 808

3 001 3 808Financial assetsOther long-term securities 80 80Deferred tax 1 868 1 226Other long-term receivables 173 141

2 121 1 447

Total fixed assets 12 202 13 916

Current assets

InventoriesStock 2 994 3 310

2 994 3 310Short-term receivablesAccounts receivable 26 234 26 184Work in progress 3 011 0Prepaid tax 1 521 2 414Other receivables 490 582Prepaid expenses and accrued income 5 024 3 160

36 280 32 340

Liquid assets 12 263 16 666

Total current assets 51 537 52 316

Total assets 63 739 66 232

LIABILITIES AND SHAREHOLDERS’ EQUITY 2002 2001

Shareholders’ equity

Restricted equityShare capital 401 401Restricted reserves 29 954 42 628

30 355 43 029Non-restricted equityLoss/profit brought forward -8 178 2 381Net loss/profit 5 890 -26 577

-2 288 -24 196

Total shareholders’ equity 28 067 18 833

AllowanceDeferred tax 1 012 901

Total allowance 1 012 901

Long-term liabilitiesLoans and other long-term liabilities 2 626 5 173

Total long-term liabilities 2 626 5 173

Short-term liabilitiesDebts to credit institute 44 3 535Advance payment from customers’ net 5 720 11 615Accounts payable 6 583 4 071Promissory note loan 2 500 2 500Other liabilities 3 710 5 363Accrued expenses and prepaid income 13 477 14 241

Total short-term liabilities 32 034 41 325

Total equity and liabilities 63 739 66 232

TOTAL SALES/BUSINESS AREA TOTAL SALES/GEOGRAPHICAL AREA

CASH FLOW ANALYSIS

2002 2001Operating activitiesProfit from operations 7 164 -27 784Depreciation 3 092 3 964Non liquid affected items 3 141 -95

13 397 -23 915

Received interest 2 054 1 011Paid interest -1 576 -1 201Paid income tax -300 -148

Cash flow from operations before 13 575 -24 253change in working capital

Change in working capitalChange in inventory 316 12 886Change in short-term receivables -4 833 5 983Change in short-term liabilities -5 950 5 099

-10 467 23 968

Cash flow from operations 3 108 -285

Investing activitiesPurchase of associated company -30 0Purchase of shares in subsidiaries 0 -1 266Equipment sold 163 73Purchase of tangible assets -1 559 -1 302

-1 426 -2 495

Financing activitiesDecrease in long-term liabilities -3 538 -5 184Change in debts on equity acquisition -2 500 -2 500Change in long-term assets 0 -412Change in long-term liabilities 0 -3 292New capital issue 0 24 454Issue for non-cash consideration 0 1 266Warrant program 0 73

-6 038 14 405

Translation differences -47 501Change in liquid funds -4 403 12 126Liquid funds at beginning of period 16 666 4 540

Cash at end of period 12 263 16 666

66%

34%

65%

24%

10%

10% 11%

8%5% 4%4%

18%35%

52% 53%

2002 2001 2002 2001

Celemi Learning BusinessCelemi Learning Consulting

SwedenOther Nordic countriesRest of Europe

North AmericaAsia-PacificOther

On the next page is a summary of the official yearly accounts audited by PwC.For a full set of the yearly accounts (available only in Swedish), please [email protected]

*Expert: Employees working directly with client projects. Top managers are regarded as experts.



Awards2002 Switzerland’s University of St. Gallen namesCelemi a Successful Practice Company in theField of Knowledge Management for the continuedefforts to manage intangible assets.

2001 German-based Synergie GmbH presentsCelemi’s partner Siemens with an award at its2001 IT-Training Congress for its innovative useof real-time data in the Celemi-designedV@lue Network™ electronic marketplace simulation.

2001 Celemi wins the brandon-hall.com/OnlineLearning Silver Award for Excellence in the“Innovative Technology” category for the MarketReality™ simulation, developed in partnershipwith Ericsson ConsumerLab.

2001 Innovative e-Learning Award from US-basedMacromedia for TangoNet, an electronic knowledge-business simulation, which took the prize for bestcorporate training application.

1999 Celemi receives The MAKE Award, “MostAdmired Knowledge Enterprises”, in Europe, andreceives a global nomination for The MAKE Award.

1997, 1998, 1999 Celemi is recognized as one ofEurope’s 500 fastest growing companies.

1998 Celemi is nominated for the global MAKEAward: “Most Admired Knowledge Enterprises”.

1997 Margareta Barchan, one of the Celemi foundersand former CEO, receives the Veuve Clicquot BusinessWoman of the Year Award.

1997 Celemi Inc. receives The ConnecticutInnovation Prize.

Celemi supports…Amnesty International, AIESEC, Børnefonden anda number of local charity initiatives. Celemi is aco-founder of the Pioneers of Change.

EUROPE

Business Practice B.V.C. LewisCenandu Learning AgencyConsentio LedarskapCustomer Care ConsultingDavison KonsultEvidensGaio ConsultingGETOQGetting BetterGSRI-CrescendoIndeaISO SMGKomercizglitibas centrsLancaster House Associates Ltd.LRF UtbildningM-gruppenMokymo CentrasNercia Utbildning ABNexus ConsultingNordvest Forum A/SNPF Pescquisa e FormacaoOrkla Brand SchoolPaget Knight ConsultingPotential Partnership Ltd.PS ConsultingSälj- och MarknadshögskolanScherin och Partners ABSKF Learning CenterStrategic Direction

AFRICAKnowHouse

Selected list of clientsAUTOMOTIVE & TRANSPORTATION

Ansett AirlinesDaimlerChryslerFederal MogulFiatLexusSaabSASSJStar AllianceVolkswagenVolvo

FINANCIAL SERVICES & CONSULTING

ABN AMROANZ BankBarclaysBBLFitch:WorldwideFortis BankFöreningsSparbankenDunn & BradstreetLloyds-TSBLRF KonsultLänsförsäkringarNatWest GroupNordeaPrincipal FinancialPricewaterhouseCoopersPrudentialWells FargoWestpacTrust BankWorld Bank

IT/IS SERVICES & CONSULTING

AcerCap Gemini Ernst & YoungCTGCSCF-SecureFujitsuHewlett PackardHoneywellIBMICLIDXLogicaMicrosoftOnline ConsultingOracleSAPSiemens Business ServicesTietoEnator

MANUFACTURING & ENGINEERING

3MABBAlfa LavalAMPBASFCooper TireDeLavalFletcher ChallengeFlexLinkGlaverbelGoodyearJohnson MattheyKONEMetso Automationm-realNorsk HydroNorske Skog

PhilipsSiemensSkanskaSKFSolutiaThomas & BettsThe Esab GroupUmicoreUnilever

PHARMACEUTICAL & HEALTH CARE

AbbottAstraZenecaBaxterBupaEvansHemoCueNovartisPharmacia CorporationGlaxoSmithKlinePfizerSolvayWyeth-Ayerst

PROFESSIONAL SERVICES

AccentureDeloitte Touche TohmatsuIBM Business Consulting Services

PUBLIC INSTITUTIONS & NGOs

AIESECAustralian Solicitor GeneralAustralian Tax OfficeComaxDEFRADERAInland Revenue (UK)Pioneers of Change

RETAIL, CONSUMER PRODUCTS& SERVICES

AholdApoteksbolagetAriensClub Corp InternationalFoster Brewing GroupGapHusqvarnaInter IKEA SystemsKooperativa Förbundet (KF)Kraft FoodSainsbury’sSupervaluSynoptik

TELECOMMUNICATION SERVICES

BTEricssonMobistarMotorolaMTNOrangeNokiaQualcommTelia

UTILITIES & ENERGY

BPCastrolCentricaElectrabelShell

GLOBAL STRATEGIC PARTNERS

Ericsson Consumer LabIBM Business Consulting ServicesKPMG ConsultantsSiemens Business ServicesSveiby Knowledge Associates (SKA)PCI:Live

CELEMI SOLUTION PROVIDERS

AMERICAS

Accelerated Learning SystemAdvantage Performance Group (APG)Advantage Plus GroupAlaska Manufacturing AssociationAlliance AssociatesAmana Desenvolvimento & EducaoDinamica Ejecutive y ProfesionalEduCore Inc.Excelerated Learning SystemsFairfax GroupManagement Development InternationalPeak PerformanceStrizzi & Associados ConsultatoresXSEL Group

ASIA-PACIFIC

AMA/GMI Management Institute Ltd.Beijing Champion Consulting Co. Ltd.Benchmarking SuccessBest Management Consulting Co. Ltd.Communication ConsultingDunamisEsheng WangExcel International Services Inc.First Priority ConsultingInternational Corporate ExcellenceLCL Business Consulting & Training Ltd.Motorola University ChinaNoetic Solutions Pty LimitedOutsourcing Thailand Co. Ltd.Pender & PartnersPeter CrankoPing An Insurance Company of ChinaShanghai Synergy Management Consulting Co. Ltd.SMG Limited

Partners



CELEMI INTERNATIONAL HEADQUARTERS

Visiting address: Kansligatan 1PO Box 577

SE-201 25 MalmöSweden

Tel: +46 40 660 2700Fax: +46 40 660 2701

CELEMI IN SCANDINAVIA

Industrigatan 2 ASE-112 46 Stockholm

SwedenTel: +46 8 693 7040Fax: +46 8 232 123

CELEMI IN FINLAND

Metsänneidonkuja 10FIN-02130 Espoo

FinlandTel: +358 9 7255 4200

Fax: +358 9 7255 4205

CELEMI IN UNITED KINGDOM & IRELAND

1, Farnham RoadGuildford

Surrey GU2 4RGUK

Tel: +44 1483 549 091Fax: +44 1483 549 181

CELEMI IN BENELUX, FRANCE & GERMANY

Langerei 57AB-8000 Brugge

BelgiumTel: +32 5044 5040

Fax: +32 5034 8508

CELEMI IN UNITED STATES & CANADA

9-D Old Windsor RoadBloomfield, CT 06002

USATel: +1 800 796 1112

Fax: +1 860 769 6090

CELEMI IN CHINA

Suite 5AXin Xing Mansion

137 Julu Road200020 Shanghai

Tel: +86 21 63581276Fax: +86 21 63724989

Mobile phone: +86 13 8188 08811

Celemi locations

LOCATIONS

Meet the board of directors

Margareta BarchanChairman of the board

Celemi co-founder andpast president and CEO.Margareta Barchan is anentrepreneur to promotingsocial responsibility anddeveloping a humanisticapproach to leadership. Sheserves on several boards andwas named “Business Womanof the Year” in Sweden in 1997.

Kjell WallénSenior businessconsultant

Kjell Wallén has a stronginternational managementbackground with companiessuch as Rank Xerox, Dynapacand NCC. Between 1991-97he was managing director andowner of Klaraberg Manage-ment Consultants. He holdsseveral board positions.

Magnus KristofersonChief operatingofficer, MercuriInternational Group

Magnus Kristoferson has a lotof international businessexperience with different typesof organizations, products andprofessional services. Since1999, he has worked withinthe knowledge-based industry.Currently he is COO within amultinational competencedevelopment firm operating in40 countries around the world.

Katrin SchwabeStaff representative,Learning consultant

Katrin joined Celemi in 2000and since then she has workedon various client projects acrossEurope. Katrin holds a Master inBusiness Administration andbefore she joined Celemi shehas worked as a consultant forthe World Game Institute andPricewaterhouseCoopers.

Per GrunewaldSenior investmentmanager, Bure Equity

Per Grunewald has a long,industrial career behind himbefore joining the private equityindustry. During his time at theElectrolux Group, he heldvarious positions within salesand marketing and generalmanagement. In 1995, Per wasappointed senior vice presidentat Electrolux, where amongother things he was responsiblefor a global change project.

BOAR D OF D I R ECTORS

Shareholders:

Bure Equity AB 32,1 %

Talloire SA 20,4 %

Melodies SA 17,0 %

Cue Productions Krister Nathanaelson AB 16,2 %

Uno Alfredéen and company 7,1 %

Other 7,2 %

Copy and graphic design: Celemiab Group ABPrinting: MCT, Malmö, Sweden, 2003


CELEMI We design learning solutions that rapidlyimprove business performance through developingpeople’s motivation, skills and knowledge.

Learning solutionsfor business performance

www.celemi.com

Documents

ANNUAL REPORT 2002 - unideb.huoktato.econ.unideb.hu/domician/Downloads/eset/Celemi... · 2006-07-29 · Decision Base™, Apples & Oranges™ and Tango. Celemi’s off-the-shelf business