Comments 2009
The focus in 2009 was on active ownership - building companies - the commitment at the very heart of Intoi's business. We have entered 2010 with a portfolio of exciting companies that are profitable and have strong positions in their respective markets. IAR Systems and Northern have leading technologies and sell to global organizations. The third subsidiary, Deltaco, is the Nordic region's largest distributor of computer accessories. In all of our holdings we are pursuing explicit strategies to develop the companies. One thing the hold-ings have in common is that they all increased their sales and strengthened their offerings during 2009.
Two years ago Intoi formulated its strategy to acquire, actively own and divest IT companies. We have expertise in multiple technologies and have several times repeated the feat of acquiring technology-intensive companies and extending the global reach of their products. We invest in companies that have leading technologies in their niches and products that are well received by the market. We then contribute our model to scale up sales and ensure that the company's technical edge creates value for the customers and stockholders.
In 2009 we received a number of inquiries from interested buyers of our holdings, but felt that the indicative levels did fully reflect the potential of the companies. This continuous assessment of possible divestitures leads to a powerful focus on value-creation in the subsidiaries. Our top priority is to strengthen the companies' offerings and maximize their profitability. By doing so we create value for Intoi, and in certain cases this value can be realized through a sale. This is both an incentive and an opportunity.
Our strong brand gives us a wide contact interface in the IT industry and brings us in contact with a large number of potential acquisitions. In 2009 we conducted several interesting discussions, but in each case we chose to wait. In 2010 we will continue to evaluate possible business transactions without any particular haste. Although the market remains uncertain, we expect to see greater stability than in 2009. We are taking a cautious approach to ensure that we only acquire quality companies that can be taken to the next level with the help of Intoi's model and resources. Development of the holdings demands management input from Intoi and the addition of new holdings can create a need to reinforce our capacity at the Group level. In view of this, we are currently focusing on supplementary acquisitions in our existing portfolio. We have the resources to accelerate value-creating in our companies through smaller acquisitions that can be integrated with the existing holdings.
Our promise to the stockholders is threefold. Firstly, we promise to professionally develop our companies by using our model to boost sales and profitability. Secondly, we promise to utilize all of our expertise and contact interfaces to buy the right IT companies with the right potential. And thirdly, we promise that our work will benefit the stockholders through Intoi's value growth.
Our ambition for 2009 was to become better at everything. We have delivered higher sales in all holdings and a profit from the Group's holdings that was largely on par with the previous year in spite of a challenging market. The Group achieved a very healthy cash flow and more than doubled its cash and cash equivalents while at the same time reducing its interest-bearing liabilities by half. This has been achieved in a weak market and has been made possible by our efforts to develop and position technology companies.
As proof of our success, the Board has proposed to the AGM that we double our dividend for 2009 to SEK 1.25 per share (0.60). In view of the Group's stable financial position and the strong market positions of its various operations, the Board expects consolidated operating profit to improve during 2010 with a goal to exceed the level in 2008.
We are moving into the market's next phase of development with solid finances and well positioned holdings. For 2010 this gives us a strong platform from which to repeat our ambition to once again become better at everything.
Stefan Skarin
President and CEO
INTOI AB (Publ)
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