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ANNUAL REPORT

08

dedicated to embedded solutions

2 DATA RESPONS ASA | ANNUAL REPORT 2008

RADAR SYSTEMSFOR FIGHTER JETS

NAVIGATION SYSTEMSFOR VESSELS

MEASURING SYSTEMSFOR OIL AND GAS

3DATA RESPONS ASA | ANNUAL REPORT 2008

DATA RESPONS’ VISION is to be a leader in embedded solutions in Europe by 2010.

CONTENTS

02 DATA RESPONS04 CEO’s statement06 This is Data Respons08 Business areas

16 MARKETS18 Denmark 20 Norway22 Germany24 Sweden

28 INDUSTRY SECTORS30 Offshore/Maritime32 Defence33 Telecom34 Other industries

38 ORGANISATION40 Sports42 Humanitarian work44 Career in Data Respons52 A lean company54 Executive management

56 INVESTOR INFORMATION57 Growth drivers58 Key figures

60 DIRECTORS’ REPORT66 The Board of directors

68 FINANCIAL STATEMENTS & NOTES69 Financial statements74 Accounting principles77 Notes97 Auditor’s report

FINANCIAL CALENDAR22.04.09 Presentation of Q1 0929.04.09 Annual General Meeting28.05.09 Capital Markets Day10.07.09 Presentation of Q2 0914.10.09 Presentation of Q3 0927.01.10 Presentation of Q4 09

CONTROL SYSTEMSFOR MEDICAL EQUIPMENT

EMBEDDED SOLUTIONSEMBEDDED SOLUTIONS are computer systems that perform one or more dedicated tasks, and can be described as the computer brain of a machine, a system or an industrial end product.

Embedded solutions can be used in a broad range of industrial applications, such as fighter-jet radar systems, ticketing systems for public transportation, network solutions for video conferencing equip-ment or fiscal measuring systems for oil and gas.

DATA RESPONS supplies embedded solutions to leading Original Equipment Manufacturers, system integrators and vertical product suppliers.


Paul Krugman was awarded the 2008 Nobel Memorial Prize in Economic Sciences for his analysis of trade patterns and location of economic activity. In simple terms, he states that when an activity is started and a net-work builds around it, a technological and economic cluster is formed. The result is that competing companies and networks have difficulty catching up with the players in this cluster.

Data Respons is part of the Danish clean technology cluster which focuses on the de-sign, development and production of wind power solutions. This is an example of a clus-ter that was created early on and that has given Denmark a leading role in this field. Other examples of clusters include the Nor-wegian industrial clusters in the maritime and oil services sector.

competitiveIndustrial clusters speed up innovation and efficiency. However, in order to succeed in such a cluster a competitive value chain is im-perative. We must therefore:

Continuously improve our technological edge. This not only provides our customers with improved functionality, but also allows for significant cost savings.

Provide top-of-the-range expertise and customer-relevant skills, services and sup-port close to the customer.

Offer the most comprehensive embedded solution set-up in the market, by improving our value add at all stages of the product life-cycle; from design and development, through delivery and to the next generation.

Being an integrated member of an industrial cluster is the ideal way to operate in the embedded industry. By pursuing this strategy we will always stay customer-oriented – the number one priority for Data Respons. This also creates a guide as to how we shall con-tinue to foster strong growth and helps us fulfil our vision of becoming the leader in embedded solutions in Europe.

energy2008 was a historic year in every respect for Data Respons. Strong growth, intense inter-national expansion and an improved overall market position are some of the examples outlined in this report. I am proud of the ef-forts made by our motivated and dedicated employees throughout the year.

The world economy faces challenging times as we enter 2009. With our unique business model, a proven solution strategy and a di-versified customer portfolio, Data Respons is well positioned to meet these new chal-lenges. Previous economic downturns have shown that changing times also provide op-portunities for solution companies like Data Respons.

We shall remain close to the core elements of our long-term strategy and goals, but also have the energy and drive needed to be proactive when dealing with short-term challenges.

Kenneth Ragnvaldsen, CEO, Data Respons ASA

Data Respons is currently established in 22 locations and forms part of LOCAL INDUSTRIAL NETWORKS in several regions in Sweden, Norway, Germany, Denmark, Finland and Taiwan.

CHAPTER 1: DATA RESPONSCEO’s statement

INDUSTRIAL CLUSTERS FUEL COMPETITIVE POWERThink globally, act locally. This is the essence of Data Respons’ strategy. The creation of competitive value chains and networks together with our customers is an important aspect of our business.

”Being an integrated member of an industrial cluster is the ideal way to operate in the embedded industry.”


CHAPTER 1: DATA RESPONSCEO’s statement


CHAPTER 1: DATA RESPONSThis is Data Respons

solutions Data Respons develops tailored solutions by combining customised HW/SW with computer products from leading partners. We are:

Involved in one or more phases of the solution’s life cycleA strategic partner for the customer

services Data Respons offers experienced specialists with a broad range of expertise from different disciplines. In this business area we:

Provide local access to a high level of expertise when neededParticipate in many development projects for customers in different industries

productsData Respons offers embedded computer products from world-leading partners that cover all relevant industrial standards. In this business area we:

A re number one in the Nordic regionMinimise time to market through quick access from our global partnersOffer tried-and-tested products for demanding industrial environments

THIS IS DATA RESPONS

ss offers embedded computer m world-leading partners that vant industrial standards. In this we:

r one in the Nordic regionme to market through quickour global partners

and-tested products ing industrial ts

COPCOPENHEN AGEN

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HHHHHEHELSINNKKKIKKKIKIKIKBERGEN

STAVANGER

KOONNONNOO GSBERGSSTOCKHOLMLM

LINKKKKÖPKÖPKK INGNGNGNGNGINGNN

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GOTHENENBUURG

VÄSVVÄ TERÅS

ERLANGANANAN ENKARARKARLSRLSRLLSRLSRUHEU

Data Respons supplies embedded solutions to leading Original Equipment Manufacturers, system integrators, application providers and vertical product suppliers. Our three business areas enable customers to choose a form of collaboration that suits their needs.

TAIPEI

ASIA


KEY FACTSestablished: 1986.

vision: Leader in embedded solutions in Europe by 2010.

mission: To strengthen our customers’ competi-tiveness by providing the best solutions.

business form: Listed on Oslo Stock Exchange, Ticker: DAT.

certifications:ISO 9001:2000ISO 14001:2004

employees: 511.

DATA RESPONS offers full-scale embedded solutions, covering all phases from specification, development, testing and delivery to the next generation.

CHAPTER 1: DATA RESPONSThis is Data Respons

FINANCIAL SNAPSHOT

REVENUE BY INDUSTRY

REVENUE PER COUNTRY

NOK million 2008 2007

Operating revenue 818.5 635.0EBITDA 62.4 53.0Order backlog 515 389

Employees 511 376

KEY FIGURES

REVENUE BY BUSINESS AREA

20072006 200820050

200

400

600

800

1000

2004

REVENUE PER YEAR (NOK million)

close to the customer Data Respons forms a part of local industrial net-works in several important regions. This is vital in order to provide customer-relevant skills, services and support as well as developing long-term cus-tomer relationships.

solid industry experience Different markets have varying requirements in or-der for an embedded solution to work in a specific environment. Common to all of them is the fact that a solution must be adapted to suit the individual customer’s market.

organisation built on team spiritData Respons is known for its technology-focused development environment and a dedicated sales team. Both departments work well together, resulting in a customer-focused approach with a strong corpo-rate culture built on shared attitudes and values.

investor informationData Respons believes that it is important to have an open and active dialogue with the stock market , and that all shareholders are treated equally. The company has been awarded Oslo Stock Exchanges’ Information Symbol for good information practices.

HIGHLIGHTS 2008strong performance

Operating revenue: 29% growth from 2007EBITDA: 18% growth from 2007 Order intake: 24% growth from 2007 Order backlog: 32% growth from 2007 Embedded solutions sales: 19% growth from 2007

strategic acquisitionsLundinova AB, Lund, Sweden Ipcas GmbH, Erlangen, Germany

establishment in new regionsStavanger, Norway Västerås, Sweden

28

16

38

5617%26%

26% 31%

Defence

Telecom

Other industries

Offshore

24%

36%35%

5%

42%49%

9%

Denmark

Norway

Sweden

Germany

Services

Products

Solutions


CHAPTER 1: DATA RESPONSBusiness areas | Solutions

BUILDING EMBEDDED SOLUTIONSMany companies acknowledge the demands in keeping abreast of technological de-velopments and choices in the embedded market. That’s why they use Data Respons as a strategic partner.

Building embedded solutions is complex, time-consuming and demanding. The process from specification to the delivery of an embedded solution is where Data Respons’ concept clearly demonstrates great value for our customers:

SPECIFICATIONS may involve temperature fluctuations, vibrations or humidity. In addi-tion, there may be special adaptations, such as form or performance requirements. On top of this, local authorities may require specific certifications.

THE DEVELOPMENT of embedded solutions must be adapted to each individual customer and project. Data Respons helps many of our customers at every stage from prototype to serial delivery. This demands a system per-spective on embedded solutions and includes advice on customised HW/SW development, choice of technology platform and suppliers, preparation of test documentation and certi-fication of prototype.

ASSEMBLY, TESTING AND DELIVERY are included in our operational capabilities. Data Respons offers comprehensive local testing facilities and cooperates closely with major test laboratories. This makes it possible to test products and solutions according to specific customer needs.

Every unit is tested before shipment. We provide quality assurance, predictability and traceability for our customers. We also pro-

vide customers with logistic services accord-ing to specific needs. Where required, we handle all necessary paperwork in terms of shipping and customs, or we can ship the products directly to the customer or to the end-customer.

NEXT GENERATION is about making the right choices. The solutions Data Respons delivers contain components from several suppliers and we keep our customers up-to-date with regards to changes, upgrades and end-of-life issues as well as advice concerning alternative solutions and the next generation.

WHY DATA RESPONS?

Enables customers to focus on their own core competencies Ensures shorter time to market and low cost of ownershipDelivers embedded solutions adapted to customer needs

49%

SHARE OF REVENUE 2008

20072006 200820050

50100150200250300350400

2004

REVENUE, SOLUTIONS (NOK million)


Data Respons is building customised embedded solutions for ANY INDUSTRIAL APPLICATION by combining embedded computer products and expertise.

CHAPTER 1: DATA RESPONSBusiness areas | Solutions

NEXT GENERATION

ASSEMBLY, TESTING AND DELIVERY

DEVELOPMENT

SPECIFICATION

Temperature Vibration Moisture Security

Form factor Performance EMC Certification

Choice of technology platform Development of customised HW/SWChoice of supplier Certification of prototype Factory Acceptance Test (FAT)

Efficient and scalable production Local testing facilities Certification Customer-specific assembly Customised logistics

Life Cycle Management End-Of-Life (EOL) Upgrading

TEMPERATURE

CUSTOMISED HW

TESTING FACILITIES

UPGRADING


CHAPTER 1: DATA RESPONSBusiness areas | Services

PROJECT MANAGEMENTQuality Time Technology Resources Risk and cost

ANALYSIS & DESIGNRequirement specifications System breakdown System modeling Architectural designs

HW DEVELOPMENTFull/Semi custom design Components Simulations Tests Certification

SW DEVELOPMENTEmbedded and real-time platform bring-upApplication development Algorithm development Framework development Configuration and test management

FPGA DEVELOPMENTLogic design and verification Real-time signal processing Cutting edge technologies System-on-Chip solutions

MECHANICAL DEVELOPMENTMechatronics Rugged design Enclosures, IP and environmental protection

TEST AND VERIFICATIONTest management System and performance tests Test system developement Test processes and system implementation


CHAPTER 1: DATA RESPONSBusiness areas | Services

Using consultants enables our customers to manage resources in projects with varying manning requirements more easily. At the same time, customers gain access to knowl-edge and experience that contribute to inno-vative quality products delivered on time.

An important add-on value for our customers is the knowledge-base that consultants from Data Respons have access to in the field of embedded solutions worldwide. This collegial network is a rich source of knowledge avail-able to our consultants for the benefit of our customers.

We offer resources either as outsourcing or insourcing through our flexible cooperation model:

INSOURCINGData Respons strengthens the customer’s de-velopment team by making its expertise and experience available to the customer in the customer’s own environment.

OUTSOURCINGData Respons develops the customer’s prod-

uct in our own premises, and we place our development model, expertise and efficient project management tools at the disposal of the customer. This ensures efficient prod-uct development and minimises the risk of errors.

STRATEGIC PARTNERAs a strategic partner we collaborate very closely with our customer. Both parties make a concentrated effort to achieve common strategic goals. This means that we also invest

in joint development, for example by invest-ing in new platforms, technologies, resources, expertise and facilities.

WHY DATA RESPONS?

Enables customers to ramp up and down as projects need more or less resources

Provides local access to a high level of expertise at a short notice

Ensures innovation and quality


REVENUE, SERVICES (NOK million)

42%

20072006 200820050

50

100

150

200

250

300

350

2004

ACCESS TO EXPERTISEOur customers can quickly obtain access to highly experienced developers with the exact expertise they require. Our collegial network is a rich source of knowledge which is avail-able for our consultants to the benefit of our customers.

Data Respons offers EXPERIENCED SPECIALISTS with a broad range of expertise from different disciplines within embedded solutions.


Data Respons’ customers have access to a comprehensive selection of EMBEDDED COMPUTER PRODUCTS from world-leading partners.

CHAPTER 1: DATA RESPONSBusiness areas | Products

Over time Data Respons has built up a large, solid network of leading partners of third-par-ty products, platforms and systems from the USA, Europe and Asia.

These are tried-and-tested products of high quality that we deliver to customers, either separately or as elements in embedded solu-tions.

Our comprehensive selections of products and different partners allow us to be inde-pendent in our choice of technology and the products we offer.

In addition our long-term cooperation with our partners contribute to an efficient and so-lution-oriented environment, which provides our customers with flexibility.

Data Respons is continually updated on de-velopments in the embedded market – a technological jungle only very few of our cus-

tomers want, or have the resources, to navi-gate through. Thus we help our customers make the right choices by evaluating existing solutions, suggesting alternatives and finding possible cost-reductions.


REVENUE, PRODUCTS (NOK million)

WHY DATA RESPONS?

Minimises time to market through quick access to our global partners

Offers tried-and-tested products for demanding industrial environ-ments

Ensures early access to new technology and offers indepen-dent advice on the choice of technology

20072006 200820050

20

40

60

80

100

2004

INDEPENDENT CHOICE OF TECHNOLOGYAn independent choice of technology requires a solid network of partners. Data Respons provides tried-and-tested embedded computer products for any application.

9%


CHAPTER 1: DATA RESPONSBusiness areas | Products

ADVANCEDTCAAdvancedMC, CPU boards, Carrier boards, MicroTCA, Mass storage, Enclosures

CERTIFIED PRODUCTSComputers & servers

COMPACTPCIBackplanes, CPU boards, I/O, Mass storage, PMC, Enclosures

COMETX, ETXexpress, PrPMC, XTX

ENCLOSURESRugged, Rackmount

INDUSTRIAL PCBox, DIN Rail, Rackmount

LCD MONITORSOpen frame, Rackmount, Industrial chassis, IP/65

MASS STORAGE2.5”, 3.5”, CompactFlash, Blades

MOTHERBOARD & SBCATX, Micro ATX, Embedded ATX, EBX, 3.5”, 5.25”, Mini ITX

PANEL PC6.4” to 20”, Panel Mount, Open Frame, IP65

PC/104CPU boards, I/O, Enclosures

VMEBackplanes, CPU boards, I/O, Mass storage, PMC, Enclosures


CASE: TOMRA Specially adapted COTS solution

More processor power for the money, a flexible platform and availability were the main reasons why Tomra chose a SPECIALLY ADAPTED COTS SOLUTION in partnership with Data Respons.

CUSTOMER REFERENCEthe customer: Tomra is a leading global pro-vider of advanced solutions enabling recovery and recycling of materials.

business situation: Tomra needed increased processor power for user interface and communica-tion on their vending machines.

the challenges: A solution with a high degree of flexibility and adaption of a standard board.

the solution: Specially adapted COTS solution with a high degree of flexibility.

business impact: Standard based board with more processor power which can be used in many of Tomra’s solutions.


CASE: TOMRA Specially adapted COTS solution


CHAPTER 2: MARKETS


CHAPTER 2: MARKETS

Data Respons offers full-scale embedded so-lutions, covering all phases from analysis and design through development, testing and certi-fication to integration and development of the next generation.

Our customers value the close partnership with Data Respons, because the embedded market is fragmented with many small and specialised enterprises, with many operating systems and different platforms and architectures to choose from. In addition, the expertise that is required to develop embedded solutions is highly spe-

cialised. New integrated solutions require very advanced technological knowledge and experi-ence with the newest developments.

As a strategic partner Data Respons provides end-to-end solutions, leaving our customers to:

Focus on their own core competence Live up to increasing demands for advanced functionalityMeet tougher demands to reduce their time to marketCarry out cost-effective R&D

As a STRATEGIC PARTNER Data Respons helps customers face increasing demands for advanced functionality, cost-effective R&D and reduced time to market.

CLOSE TO THE CUSTOMERData Respons forms a part of local industrial networks in several important regions. This is vital in order to provide customer-relevant skills, services and support as well as developing long-term customer relationships.

SHARE OF REVENUE

REVENUE PER COUNTRY (NOK million)

Country 2008 2007 Change

Norway 298.8 287.9 4%Sweden 294.4 183.7 60%Denmark 200.3 153.5 31%Germany 38.4 16.9 127%

”Every time we want to change something in China , it takes three months. When we do it locally, it takes three days – or three hours.”

Troels Bierman Mortensen, Managing Director, Medotech A/S

24%

36%35%

5%

Denmark

Norway

Sweden

Germany


CHAPTER 2: MARKETSDenmark

Data Respons develops customised embed-ded solutions either from standard HW/SW platforms or entirely from scratch, including customer-specific hardware, software and me-chanics. A full-scale embedded solution typi-cally include logistics, technology assurance, end-of-life and last-time-buy monitoring.

Data Respons has customers within the trans-portation, telecommunication, maritime, de-fence, energy and medical sectors. Customers

use Data Respons as a consultancy and develop-ment partner as well as a second development centre, pushing more product lines through the pipeline than would otherwise be possible.

Data Respons’ role is to assume the responsi-bility for the solution and offer local expertise combined with competitive technological so-lutions. This provides the customer with cost-effective solutions and the opportunity to focus on its core operation.

Data Respons is experiencing GROWTH IN EMBEDDED SOLUTIONS, minimising customers’ time to market, development risks and help-ing them focus 100% on their own key skills.

DENMARKData Respons is a leading embedded solutions company in Denmark and offers all phases from specification, develop-ment, testing and integration through to the development of next generation.

REVENUE PER BUSINESS AREA

REVENUE 2004-2008 (NOK million)

20072006 200820050

50

100

150

200

250

2004

KEY FIGURES

NOK million 2008 2007Operating revenue 200.3 153.5EBITDA 17.7 14.4Order backlog 85 53

Employees 95 77

danish highlightsQ1 Moved into new premises in Copenhagen

Contract worth NOK 12 million

Q1 Solutions contract worth NOK 12 million

Q4 Contracts worth DKK 25 million

data responsEstablished: 1999

Offices: Copenhagen, Skanderborg and Sønderborg

Employees: 95

Certifications: ISO 9001:2000

53%42%

5%

Services

Products

Solutions


CHAPTER 2: MARKETSDenmark

SØNSØNDERRBBORGEmployeeees:s: 11

SKANDERBORGEmployees: 16

COPCOPENHAGEGENNEmployees: 78


CHAPTER 2: MARKETSNorway

BERGENEmployees: 11

SANDVIKAEmployees: 13

SKULLERUDEmployees: 21

OSLOEmployees: 79

KONGSBSBERGERGEmployeeoy s: 200

STAVANGEREmployees: 6

ASKEREmployees: 12


CHAPTER 2: MARKETSNorway

The Stavanger region has one of the world’s most innovative industrial clusters in the fields of oil and maritime technology, and Data Respons’ aim is to work towards a even closer integration with our customer in this area.

Our staff of engineers is supplemented by our freelance network, the Embedded Pool. Data Respons’ Embedded Pool consists of professional freelancers working within the field of embedded solutions. The number of freelancers are increasing and gives Data Respons access to a broad range of expertise

and a high level of flexibility and adaptability with regard to the scope, duration and loca-tion of assignments.

Data Respons is certified according to NS/EN ISO 14001:2004. This affects our focus and priorities with regards to environmental issues such as:

Packaging Waste from day-to-day operations Transporting goods Use of video conferencing equipment Return of goods via Elretur

Transition to new technology platforms provides our customers with SIGNIFICANT COST SAVINGS, better functionality and creates new possibilities.

NORWAYThe expansion to Stavanger, an increased Embedded Pool network and participating in many challenging development processes will strengthen the momentum for Data Respons’ business in the future.



20072006 200820050

50

100

150

200

250

300

2004

KEY FIGURES

NOK million 2008 2007Operating revenue 298.8 287,9EBITDA 36.7 39,7Order backlog 252 219

Employees 162 137

24%

62%14%Services

Products

Solutions

norwegian highlightsQ1 Offshore contracts worth NOK 19 million

Q2 Breakthrough in the maritime market, NOK 56 million

Q3 Solution deliveries worth NOK 20 million

Q4 Establishing a new office in Stavanger Offshore contract worth NOK 11 million Certified according to the ISO 14001:2004 standard Telecoms contract worth NOK 7 million Kongsberg contract worth NOK 7 millionSolution contract worth NOK 7 million


Offices: Asker, Bergen, Oslo, Kongsberg, Sandvika, Skullerud, Stavanger

Employees: 162

Certifications: ISO 9001:2000NS/EISO 14001:2004


CHAPTER 2: MARKETSGermany

Since 2005 Data Respons has increased the operating revenue from zero to NOK 38 mil-lion. Growth in revenue has yielded confi-dence. This confidence is justified by delivering the best projects to our customer - again and again. The only way to further expand our busi-ness in Germany is by delivering better, more efficient and more cost-conscious projects and solutions than our competitors.

We have ambitious plans for our operation in Germany and the acquisition of Ipcas GmbH is central to these plans. Ipcas GmbH has a solid and broad competency within the develop-ment of embedded solutions, and the acquisi-tion will broaden and strengthen our level of expertise, increase our potential for solution sales, and further expand our geographical presence in Germany.

Germany is a KEY AREA OF PRIORITY for Data Respons and our main focus is to improve the total setup and exposure in this market by acquisitions and organic growth.

GERMANYDeveloping embedded solutions that provide our cus-tomers with new functionality and technology in their end products is based on confidence. Data Respons has gained this confidence through cost-effective and reliable deliveries.



20072006 2008200505

10152025303540

2004

KEY FIGURES

NOK million 2008 2007Operating revenue 38.4 16,9EBITDA 3.2 -3,4Order backlog 23 11

Employees 57 9

32%

57%

11% Services

Products

Solutions

german highlightsQ2 Contract worth NOK 2.5 million (infotainment

solution)

Q3 Acquisition of Ipcas GmbH

Q4 Contract worth NOK 1.8 million (transportation industry)


Offices: Erlangen, Karlsruhe

Employees: 57

Quality certification: ISO 9001:2000 (Erlangen)


CHAPTER 2: MARKETSGermany

KARRLSRL UHEUEmployeeoyees:s 7

ERLANGENEmployees: 50


CHAPTER 2: MARKETSSweden

KISTAEmployees: 83

LUNDEmployees: 36

STOCKHOLMEmployees: 32

LILINKÖPINGEmployees: 8

HELSINKIEmployees: 1

VÄSTERÅSEmployees: 14

GOTHENBURGEmployees: 23


CHAPTER 2: MARKETSSweden

The group is now reaping the reward of being established in many of the most im-portant industrial regions in Sweden. The increased contract sizes and volumes within embedded solutions over the last few years tell us that customers appreciate the con-venience and efficiency in using Data Re-spons.

Data Respons sees a strong trend towards One-Stop-Partnering, assisting our customers with time to market and total cost of owner-ship advantages:

Delivering customised technology and advanced computer modulesTotal responsibility for a solution from design, volume delivery and end-of-life managementCompetence to proactively propose new technology insertion points, driving perform-ance and cost reductionsTaking responsibility for customers’ current designs and re-engineering to meet new demandsWide geographical coverage creates local strengthCore competence in embedded technology

Data Respons has increased its GEOGRAPHICAL DEPLOYMENT in important regions and strengthened the total competency platform, increasing its ability to win new major embedded solutions contracts.

SWEDENData Respons has built up a solid position within various segments of the Swedish embedded market.



20072006 200820050

50

100

150

200

250

300

2004

KEY FIGURES

NOK million 2008 2007Operating revenue 294.4 183,7EBITDA 17.7 14,9Order backlog 154 105

Employees 197 153

54%

36%

10%Services

Products

Solutions

swedish highlightsQ1 Data Respons acquires Lundinova AB

Maritime contract in Finland worth NOK 8 million

Q2 Influx of contracts in Sweden, worth SEK 25 million SEK 22 million solution contract in Sweden

Q3 Sweden receives contracts worth over SEK 25 million Establishment of new office in Västerås

Q4 Swedish solutions contract worth SEK 20 million


Offices: Gothenburg, Kista, Linköping, Lund, Stockholm, Västerås and Helsinki (FIN)

Employees: 197

Quality certification: ISO 9001:2000


CASE: SBG Machine control with 3D visualisation

GeoROG from SBG is a solution which brings together and presents PLAN MODELS AND GPS DATA to operators of site machinery, allowing production capacity to be increased by 20–100 per cent.

CUSTOMER REFERENCEthe customer: Svensk Byggnadsgeodesi AB (SBG) is part of Hexagon AB and is a world leader in the de-velopment of geodetic and machine control software.

business situation: SBG had problems finding a satisfactory hardware solution for GeoROG.

the challenges: An increasingly sophisticated user interface on the GeoROG product with fea-tures such as touch screens and advanced commu-nications solutions made very high demands of the hardware platform.

the solution: A powerful and stable ETX solu-tion with a more powerful processor, more connec-tion options and ports, and better communications facilities.

business impact: The new GeoROG was well received in the market and the amount of sup-port and service required has been considerably reduced.


CASE: SBG Machine control with 3D visualisation


CHAPTER 3: INDUSTRY SECTORS


CHAPTER 3: INDUSTRY SECTORS

Many of Data Respons’ customers have a world-leading position as specialists within different industries. They offer technologically complex products to end-customers world-wide. Others are subject to strict government requirements and place high demands on the operational reliability of the solutions.

Servicing this diverse range of custom-ers require a solid industry expertise across markets such as defence, offshore, medical, transportation, energy, industrial automation and telecommunications.

WHY DATA RESPONS?

Cutting-edge expertise Integration and testing facillities in all countriesGlobal partner network Certifications: ISO 9001:2000 and ISO 14001:2004

SOLID INDUSTRY EXPERTISECustomers in different industries are characterised by individual requirements and needs. To service them professionally, Data Respons needs to understand the condi-tions and adaptations that are necessary in order to provide them with embedded solu-tions that exceed their expectations.

Have a leading position as specialists in various industriesHave technologically complex productsHave a volume delivery of 50- 5,000 units per year

TYPICAL SOLUTION CUSTOMERS

REVENUE BY INDUSTRY SECTOR

17%26%

31%26%

Defence

Offshore

Telecom

Data Respons has developed SOLID INDUSTRY EXPERTISE in various industries such as defence, medical, offshore, transpor-tation, environment and telecommunications.

Other industries


CHAPTER 3: INDUSTRY SECTORSOffshore/maritime

Data Respons supplies EXTENSIVE SOLUTIONS to major players and has acquired cutting-edge expertise in the offshore and maritime market.

CONTROL SYSTEMS FOR NAVIGATING SHIPS

OFFSHORE/MARITMEDeveloping offshore and maritime applications requires good insight into government regulations, certification and knowledge of external stress factors such as pressure, temperature fluctuations and vibrations.

WHY DATA RESPONS?

In-house design expertise Know-how in offshore/maritime certification, environmental stress factors and government requirements Delivers embedded solutions adapted to offshore/maritime working environments Provides rugged and tested products for offshore/maritime industry

TYPICAL APPLICATIONS

Control systems for steering and navigating shipsCertified maritime solutions Metering systems for oil and gas Collection of seismic data Control systems for cranes, handling equipment and enginesAdvanced process control in subsea applicationsCommunication solutions dedicated maritime approved computers and monitors


CHAPTER 3: INDUSTRY SECTORSOffshore/maritime

In surroundings where humidity, vibration, temperature variations, shock and salt spray are a problem, computer equipment must have very special qualities. Data Respons has gained cutting-edge expertise in the offshore/maritime industry and develops solutions for use in tough and chal-lenging environments.

TOLERATE EXTREME CONDITIONS


CHAPTER 3: INDUSTRY SECTORSDefence

RADAR SYSTEMS FOR FIGHTER JETS

DEFENCEData Respons provides embedded solutions to global leading companies that sup-ply turn-key systems to various sections of the defence industry and the armed forces throughout the world.

WHY DATA RESPONS?

Ability and experience to combine standard industrial products with advanced custom design solu-tions, built for harsh environmental conditions.World leading partners providing military specified and ruggedised COTS products to the defence market. Know-how of military standards, environmental stress factors and government requirements


Control and communication systemsPassive sensors and warning systemsEmbedded computer systems for land, sea and air applications Fire control systems Electro optical systems Modified COTS


CHAPTER 3: INDUSTRY SECTORSTelecom

NETWORK SOLUTIONS FOR VIDEO CONFERENCING EQUIPMENT

TELECOMThe telecoms sector is changing continuously and has to deal with more complex systems, upgrades to next generation systems, shorter time to market and shorter product life cy-cles. Continual work on projects for the telecom sector has given Data Respons extensive experience of relevant application areas in this market.

WHY DATA RESPONS?

Extensive experience in developing applications for handling data, video and voice processingEstablished engineering knowledge in building applications for existing communication networksAccess to standardised telecom HW platforms from leading glo-bal suppliers


Infrastructure and system solutions for mobile networks3G, GSM/GPRS, VoIP applications, media gateways, satellite communications, switches, wire-less information systems, signal processing, video streaming and M2M solutionsHigh volume portable accessories for music, imaging, charging and connectivityTest and service equipment


CHAPTER 3: INDUSTRY SECTORSOther industries

OTHER INDUSTRIESData Respons’ comprehensive experience with applications comes from many years of systems building and makes us a valuable partner for Original Equipment Manufactur-ers, system integrators and vertical product suppliers in various sectors.

MEDICAL / LIFE SCIENCESDeveloping devices and systems within Medical and Life Sciences means that Data Respons has considerable experience living up to tough criteria on EMC/ESD designs, as well as certification and documentation in com-pliance with FDA regulations.

WHY DATA RESPONS?

Certified development process that meet strict medical requirementsAll necessary competencies and medico-technical experience in-houseKnow-how of medical-industrial product development standards


Sensors and measurement Control and surveillance of appli- ancesDiagnostic screening of blood and other bodily fluidsWireless applications Electro acoustic systems


CHAPTER 3: INDUSTRY SECTORSOther industries

Data Respons has extensive application experience in various industry sectors such as MEDICAL, ENERGY AND TRANSPORTATION.

ENERGY / ENVIRONMENTData Respons is increasingly engaged in developing products and systems for the energy and power sectors. These include systems for inspecting wa-ter pipelines, automatic meter reading, industrial/home control applications and climate control as well as systems and applications for environmentally friendly power generation such as wind power.

WHY DATA RESPONS?

Technical expertise with high performance platforms for the energy and environment sectorsCompetencies within modular industrial solutionsBroad experience with power-saving wireless technology for home/indus-trial control and AMR


Measurement, control and surveillance of machines, heating, struc-tures etc.Sensors and wireless network for control and monitoringAutomatic meter reading and home controlIndustrial control and automation

TRANSPORTATIONThe transportation sector encompasses the automotive industry, railway and seagoing vessels that are built for transporting people and/or cargo. Delivering systems for these sectors means that Data Respons possesses extensive experience in developing solutions that live up to tough environ-ment specific and rugged criteria.

WHY DATA RESPONS?

Rugged and tested products suitable for the automotive industry from lead-ing global suppliersOne-stop business partner with local operations in several European countriesExperience with speed, precision and safety as well as GPS/GPRS for positioning, global communication and info-tainment


System solutions for the control, command and surveillance of ma-chinery, cars, trains, ships, etc.Communication systems for non- disrupted internet access on trainsElectronic Fare Collection, Fleet management and POS/POI systemsFanless computer solutions and safety-critical SW solutions for vehicular applications


CASE: MEDOTECHOutsourcing provides faster development

With Data Respons as a development partner, Medotech’s new MEDICAL-TECHNICAL DEVICE, Grindcare, has set a new time-to-market record.

CUSTOMER REFERENCEthe customer: Medotech A/S develops and de-signs medical-technical equipment which registers and analyses signals from the human body.

business situation: Medotech needed a com-plete redesign of the printed circuit board, software and mechanism of the Grindcare product.

the challenges: A launch of a medical techni-cal product into the international market required extensive documentation and manufacturing re-quirements.

the solution: A single contract included the redesign of hardware, software, mechanics, project management, cooperation with industrial designers and manufacturing partners and achieved a gradual changeover from development to production.

business impact: A single contract with sub-suppliers working according to one overall project plan. An integrated development made it possible for Medotech to benefit from a gradual and time-saving realisation of Grindcare from prototype to large scale production.


CASE: MEDOTECHOutsourcing provides faster development


CHAPTER 4: ORGANISATION


CHAPTER 4: ORGANISATION

Engineers, sales staff and administration work well together, resulting in a customer-focused approach with a strong corporate culture built on shared attitudes and values.

The will to succeed, a thirst for knowledge and a passion for technology characterises employees throughout Data Respons’ organisation. We place importance on social and sporting activities be-cause they strengthen the team spirit and know-how amongst our employees. Data Respons has a long tradition in humanitarian work and the growing demand for “Greentech” solutions in the em-bedded market is in accordance with Data Respons’ environmental certification ISO 14001:2004.

ORGANISATION BUILT ON TEAM SPIRITData Respons has a working environment that combines technology, the best engineering minds in the industry and a committed sales team.

The will to succeed, a tremendous thirst for knowledge and a burning PASSION FOR EMBEDDED SOLUTIONS characterises employees throughout Data Respons’ organisation.

EMPLOYEES PER DIVISION

EMPLOYEES PER COUNTRY

TOTAL NUMBER OF EMPLOYEES

20072006 200820050

100

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2004

DATA RESPONS’ VALUESTAKING OVERALL RESPONSIBILITYExtending and committing ourselves to making each other better.

ACHIEVINGA will to succeed, acquire new knowledge and dare to find new ways of achieving our goals.

BEING GENEROUSBeing open, inclusive and willing to share know-ledge.

HAVING FUNWe laugh with, instead of at each other.

39%

32%18%

11%

Sweden

Denmark

Norway

Germany

9% 66%

11%

14%

Administration

Operations

Development

Sales


CHAPTER 4: ORGANISATIONSports

WORK HARD – PLAY HARDData Respons offers independent and varied assignments in a challenging and open work environment known for its informal tone.

All Data Respons countries have regular after work get-togethers and SPORTING ACTIVITIES which are based on one of Data Respons’ values - “Having fun”.

Often the corridors and development labs are buzzing with professional discussions. We value dialogue and sharing knowledge and initiatives for improvement - even out-side our own areas of expertise.

In addition to our professional community, sporting activities and social gatherings have always been an important part of Data Re-spons. There is a long and proud tradition

of participating in company runs, biking and cross-country ski races.

All Data Respons offices have regular after work get-togethers and cultural happenings. These activities are based on one of Data Re-spons’ values - Having fun, part of a set of shared attitudes and values which define the company’s strong corporate culture.

TRACKING THE WORKOUT

Data Respons’ fitness program “A Healthy Corporation” is suitable for all levels of activity and interests, and motivates participants through competitions between departments and countries.

The employees register their workouts online and track their own and other teams progress. The teams and individual participants receive prizes and other in-centives throughout the year.


CHAPTER 4: ORGANISATIONSports


CHAPTER 4: ORGANISATIONHumanitarian work


CHAPTER 4: ORGANISATIONHumanitarian work

TO GIVE IS TO RECEIVE“Helping children help themselves”. This is the motto of the humanitarian organisation “On our feet”. It defines the basis of Data Respons’ humanitarian activities.

Data Respons’ cooperation with the organisation “On own feet” has a LONG TRADITION and is one of the most important parts of Data Respons’ activities in the field of Corporate Social Responsibility.

The origins of Data Respons’ cooperation with the organisation “On own feet” was a set of cri-teria defined by management and employees in 1998. These were as follows:

Cooperation should be long-term Data Respons should identify with the projectData Respons’ customers should be able to participate in the programme

All of these criteria were met by the humani-tarian organisation “On own feet”. One of the organisation’s activities is the production and sale of hand-painted Christmas cards. Children draw, paint and sell original Christmas cards to companies and private buyers and earn funds to buy ambulances and equipment for many hospitals and schools in war-torn countries.

an active supporterApart from buying these cards from the chil-dren and sending them to customers, Data Respons makes donations to specific projects. The donations are always connected to specific parts of the projects like building materials or equipment.

These are the most important achievements to which we have contributed in 2008:

Building and equipping a school in Logaru in Afghanistan so that children can to go school in the winterExpanding the children’s farm in the Czech Republic so that the children can work with plants and animals. This is important for their mental health.Purchasing specialised equipment for blind children in the Czech Republic

The children from “On own feet” are very en-gaged in working against bullying and have published a book called ‘no bullying, please’. The children provided all texts and illustra-tions in the book. Their hope is to encourage children in other EU countries to participate in the battle against bullying.

The Centipede organisation is now the most important sponsor of child psychiatry in the Czech Republic.

For more information about “On Own Feet”, visit www.centipede.org

CORPORATE SOCIAL RESPONSIBILITY (CSR)“Taking overall responsibility” is an important core value for Data Re-spons and the group aspires to be a responsible corporation in terms of labour standards, human rights and environmental protection. Data Re-spons has implemented corporate social responsibility policies which are publicly available. The policies cover governance and integrity manage-ment, environmental protection, hu-man rights and labour standards, and are in accordance with the UN Global Compact Principles.


CHAPTER 4: ORGANISATIONCareer in Data Respons

CAREER IN DATA RESPONSData Respons consists of a development environment focused on technology and has a proactive sales organisation. Both environments have to work well together. This results in a customer-focused attitude with mutual respect for each other’s professions.

Data Respons’ WORKING ENVIRONMENT is friendly, non-bureaucratic and challenging with varied, independent tasks.

Our customers expect the best which means that we place great demands on our employ-ees. Data Respons has a young pulsating, creative social environment. Team spirit and laughter are highly valued. A little madness and wild ideas are part of the working envi-ronment.

Data Respons’ work environment is a friend-ly, non-bureaucratic and challenging setting, with independent and varied tasks. Data Respons’ employees enjoy opportunities for professional and personal development in a company with exciting international growth potential.

professional developmentAt Data Respons, the professional develop-ment of our employees takes pride of place. Providing consultancy and development services to our customers means that collec-tive knowledge and experience have become our core values.

The embedded projects that we work on are the guiding lights in our efforts to update our knowledge. Data Respons values the pro-fessional development of its employees as a means of strengthening our competitive edge and achieving our goals.

We allocate time and finances to each em-ployee’s professional development. In return we expect that each employee takes respon-sibility for continuously improving his or her competencies.

EDUCATIONAL ACTIVITIES

Data Respons Sales Academy (Sales)

SCRUM Master (Developers)

Professional Forums (Developers)

Workshops (Developers)

In-service training (Sales & Developers)


CHAPTER 4: ORGANISATIONCareer in Data Respons


CHAPTER 4: ORGANISATIONCareer in Data Respons | Sales

CAREER IN SALESThe sales team at Data Respons, part of our challenging and growing sales environment, works with some of the most exciting companies in Europe.

You will be working at the nexus between technology and business, liaising with cus-tomers, our development teams and opera-tion centres. You will make sure that contracts are landed, and follow up on deliveries.

You must work in a proactive and focused way in order to achieve your own and Data Respons’ targets. You work at a pace which ensures that you maintain and expand your portfolio.

The salespeople at Data Respons often have a commercial business background supple-mented with professional experience involv-ing extensive customer contacts. They have a strong interest in our industry and the abil-ity to acquire complex technical knowledge quickly.

interested? Submit your application and CV to [email protected]

Turning embedded solutions into realistic business concepts


ACCOUNT MANAGERName: Åsa Grübb-Weinberg Age: 54Has worked at Data Respons since: 2006

“At Data Respons I’m working with a team that consists of technicians, project managers, salespeople and devel-opment engineers. We might work for months on a sin-gle sale, and the solutions are always customised. All the needs, desires and requirements have to be clarified with the customer, and must be realistic.”

CHAPTER 4: ORGANISATIONCareer in Data Respons | Sales

Data Respons’ sales team is working at the nexus between TECHNOLOGY AND BUSINESS, liaising with customers, and our development teams and operation centres.

STRATEGIC ACCOUNT MANAGERName: Knut StrandenæsAge: 50Has worked at Data Respons since: 2006

“My main job is to develop business relationships with new and existing customers. I also work a lot on com-mercialising technical platforms. I really enjoy working with a mix of business and technology. A technical solu-tion has to do more than just work: it also has to have a realistic business concept.”

KEY ACCOUNT MANAGERName: Daniel AspeskärAge: 34Has worked at Data Respons since: 2003

“The cooperation between salespeople and engineers at Data Respons is excellent. Most of the salespeople have a basic technical background, and many of the engineers have a general understanding of sales and marketing as well. The salespeople enjoy an elevated status within the company, and have a direct influence on its develop-ment.”

A strategic account manager at Data Respons works in a focused and goal-based way with decision-makers at the highest levels of the business world.

You possess an excellent knowledge and overview of the market. You are an aggressive team player with the ability to decide on the most important bat-tles by yourself, while still playing well with your colleagues. Ideally you have an advanced business education com-bined with technical understanding and interest.

A key account manager at Data Re-spons works in a goal oriented, struc-tured and direct manner to achieve the company’s sales targets. It is im-portant that you have personal and corporate aims in terms of value crea-tion, professional advancement and personal growth. Ideally a key account manager will have a business back-ground combined with career experi-ence involving professional customer contacts, and an interest in and famili-arity with our industry.

An account manager at Data Respons has previous sales experience and is adept at handling a variety of job tasks.

An account manager works with spe-cific customers, provides sales sup-port for strategic and key account managers, and makes sure that cus-tomer deliveries are followed up. An account manager also provides project management for customer activities.


CHAPTER 3: ORGANISATIONCareer in Data Respons | Services

Engineers at Data Respons develop systems for signal processing, data gathering, communication (wireless and M2M), monitoring, control, testing, instrumentation and real-time programming.

You will be working with cutting-edge technology and some of the most modern methods and tools currently available on the market. We are looking for people who have a B.Sc., M.Sc. or Ph.d. in IT, electronics engineering or cybernetics plus experience and/or expertise in one or more of the following areas:

interested? Submit your application and CV to [email protected]

Turning technical challenges into embedded solutions

CAREER IN DEVELOPMENT

Project management HW development

SW development Mechanics development

VHDL/FPGA logic development


CHAPTER 4: ORGANISATIONCareer in Data Respons | Services

SENIOR DEVELOPMENT ENGINEERName: David LundholmAge: 36Has worked at Data Respons since: 2005Education: MSc EE

“Data Respons is characterised by an excellent professional and social work environment. Emphasis is put on ensuring that the employees have opportunities to exercise and to get together to enjoy, for instance, the monthly pub crawl. The projects are varied and technically challenging and the working conditions and pension scheme are good.”

Developers at Data Respons are working with CUTTING-EDGE TECHNOLOGY and the most modern methods and tools currently available on the market.

PRINCIPAL ENGINEERName: Peter Grønning SørensenAge: 46Has worked at Data Respons since: 2006Education: MSc EE from the Technical University of Den-mark (DTU)

“Because I work in direct contact with customers, I get to work on varied and challenging development tasks. As prin-cipal engineer in logic design, my responsibilities include DSP, PLD and FPGA development for our customers.”

A principal engineer at Data Respons is an experienced and professional heavy-weight.

Principal engineers are independent developers, fully responsible for their personal work situation.

TYPICAL AREAS OF RESPONSIBILITY:Expert authority Technology manager Proposal work and proposal review QA

A senior development engineer at Data Respons is an experienced en-gineer who seeks responsibility and makes independent choices in the dis-position of his or her job duties.

He or she must serve as technical sup-port for other developers.

TYPICAL AREAS OF RESPONSIBILITY:Project management Customer contacts Proposal work QA

A development engineer at Data Respons is usually a recent college graduate.

Our development engineers work closely with experienced developers for a period of time, so that they can advance to the senior level as quickly as possible.

TYPICAL AREAS OF RESPONSIBILITY:Solution development and design Project work

DEVELOPMENT ENGINEERName: Yun Hui YehAge: 28Has worked at Data Respons since: 2006Education: M.Eng

“The employees at Data Respons are characterised by a strong desire to share knowledge with one another. This is a corporate culture that is based on making one another strong from a professional and technical standpoint. That means that we build up expertise and that more people become skilled in many areas.”


CHAPTER 4: ORGANISATIONCareer in Data Respons | Embedded Pool

DATA RESPONS EMBEDDED POOLThe Embedded Pool is a network of external professional freelancers which gives our customers access to a broad range of expertise from various technical disciplines with-in the field of embedded solutions.

The Embedded Pool is a NETWORK OF FREELANCE DEVELOPERS who are tightly integrated into Data Respons’ project organisation and quality system.

The Embedded Pool is a network of freelance developers who are tightly integrated into Data Respons’ project organisation and quali-ty system. The result is a flexible resource pool of expertise which is available to our custom-ers. Access to resources from the Embedded Pool increases project capacity, meaning that Data Respons does not need to refuse or de-lay assignments.

Many of the independent developers in the embedded market are niche-oriented and have specialist expertise in market areas where Data Respons has only limited activity.

Cooperation with such freelancers broadens Data Respons’ portfolio of expertise and in-creases our capacity and flexibility. This new expertise in the market is promoted via Data Respons’ sales and marketing apparatus, and gives freelancers access to an increased number of projects, either as consultants to our customers’ project organisations or as participants in Data Respons’ projects. It is absolutely vital that our customers feel they can rely on the quality and capability of the freelancers they hire. All participants in the Embedded Pool undergo a thorough quality-assurance process.

Freelancers in the Embedded Pool work closely with our customers and are tightly integrated with the project organisation, yet retain their independence. However, it is im-portant to integrate them into Data Respons’ organisation and to create a sense of techni-cal and social belonging. Establishing loyalty is crucial, so that such freelancers, in the same way as our employees, act as ambassadors for Data Respons in the market.

JOIN THE CLUB – BRING YOUR IQData Respons is looking for peo-ple with extensive experience and professional prowess in technical disciplines such as:

Embedded design & development Project management VHDL/FPGA logic Analogue HW design Real-time systems OOAD/UML, C, C++, MFC, C#, JavaLinux, WinNT/CE/XP, Wind River, Green HillsTCP/IP, CAN, Hart, Modbus, GPRS

WE OFFERExciting and demanding projects for national and international cus-tomers in various industriesA unique professional network A good social environment

REGISTER YOUR CVBe a part of Data Respons’ Embed-ded Pool. Register your CV on our website: www.datarespons.com/cv

Follow-up from Data Respons has been very good and I recommend that other freelancers contact the Embedded Pool to find out about work opportunities.

Ståle Hammersland, freelancer in Embedded Pool


CHAPTER 4: ORGANISATIONCareer in Data Respons | Embedded Pool

EMBEDDED POOLCONNECT TO DATA RESPONS


CHAPTER 4: ORGANISATIONA lean company

Data Respons has a regional profit centre model that keeps the company lean and customer-driven in all parts of the organisation.

A LEAN COMPANY

Understanding the challenges faced by the customer creates value. Data Respons’ most important task is to IMPROVE OUR ORGANISATION continuously to accomodate the needs and desires of our customers.

The country structure is divided into three departments:

salesSales consists of a skilled group of sales ac-count managers working at the nexus between business and technology.

operationsOperations provides assembly and testing in accordance with the customer’s require-ments. In addition Operations handles all necessary paperwork in terms of shipping

and customs, and ships the products directly to the customer, or to the end-customer (drop shipment). After delivery, Operations handles RMA cases, Life Cycle Management and support.

servicesServices are organised in several geographical departments; each organised as an independent profit centre that provides customers a mix of highly skilled embedded engineering compe-tence in Germany, Denmark, Norway, Finland and Sweden.

1986 - Established at Høvik (Oslo)

1998 - Office in Bergen

1999 - Start up in Denmark- Office in Copenhagen

2000 - Start up in Sweden- Office in Stockholm- Office in Kongsberg

2002 - Start up in Finland- Office in Helsinki

2005 - Start up in Germany- Office in Karlsruhe- Acquisition of CCT AS- Acquisition of Centrex AS

2006 - Acquisition of Memstore AB- Acquisition of Embedit A/S

2007 - Acquisition of Digitas AS- Acquisition of Sylog Sverige AB- Acquisition of Syrén Software AB- Office in Taipei- Office in Linköping- Office in Skanderborg- Office in Sønderborg

2008 - Acquisition of Lundinova AB - Acquisition of Ipcas GmbH - Office in Stavanger - Office in Västerås

HISTORICAL HIGHLIGHTS

GERMANYcountry management

NORWAYcountry management

SWEDENcountry management

DENMARKcountry management

DATA RESPONS ASAgroup management

Serv

ices

Sale

s

Ope

ratio

ns

ORGANISATIONAL CHART

Serv

ices

Sale

s

Ope

ratio

ns

Serv

ices

Sale

s

Ope

ratio

ns

Serv

ices

Sale

s

Ope

ratio

ns


CHAPTER 4: ORGANISATIONA lean company

Data Respons’ office in Karlsruhe is located in modern, bright premises in the heart of the technology park in Karlsruhe. Since 2005, Data Respons Germany has in creased the ope-rating revenue from zero to NOK 38 million.

OFFICE IN KARLSRUHE, GERMANY


KENNETH RAGNVALDSEN, CEOAge: 41 Shareholding: 245,000 Share options: 300,000

Kenneth Ragnvaldsen has an MBA from the Norwegian School of Management (BI). He worked in finance, sales and marketing for three years before starting at Data Re-spons in 1995.

He was previously the sales and marketing director of Data Respons ASA. Ragnvaldsen was appointed as CEO in 2003.

CHAPTER 4: ORGANISATIONExecutive management

RUNE WAHL, CFOAge: 42 Shareholding: 60,000 Share options: 200,000

Rune Wahl trained as a business economist at the Norwegian School of Management (BI) and has an MBA from INSEAD. He has previously been the director of finance at Tandberg Storage and Avenir ASA, and has also held various management positions in Ementor, Fri-onor and DNV. Wahl was appointed as CFO in 2005.

EXECUTIVE MANAGEMENT


CHAPTER 4: ORGANISATIONExecutive management

The key areas of focus for the EXECUTIVE MANAGEMENT TEAM are customer relations, profitable growth, cash generation and operational excellence.

HANS CHRISTIAN LØNSTAD, CTOAge: 49 Shareholding: 61,596 Share options: 80,000

Hans Christian Lønstad has a Master of Science degree and a doctorate in cybernetics from the Norwegian University of Science and Technology (NTNU). He has worked at Data Re-spons since 1995, and previously spent four years as a researcher at SINTEF. He also worked for GE Vingmed for five years. Lønstad was appointed as CTO in 2003.

ÅGE GJELLESVIK, VICE PRESIDENT SALES Age: 47 Shareholding: 33,043 Share options: 80,000

Åge Gjellesvik trained as an engineer and has many years’ experience working as a system designer. In the spring of 1998 he established the first branch office in Bergen. After holding several management positions at Data Respons Norge AS, he was appointed as vice president sales for Data Respons ASA in 2003.

GEORG A. HUUS, MARKETING DIRECTORAge: 39 Shareholding: 3,000 Share options: 80,000

Georg A. Huus trained as an economist at the Norwegian School of Economics and Business Administration (NHH). For eight years he worked as a consultant at Geelmuyden.Kiese. Huus was appointed as marketing director in 2006.

SVEN FALCKE, VICE PRESIDENT OPERATIONAge: 46 Shareholding: 1,000 Share options: 0

Sven Falcke has a Master in Economics and Administration from Germany and a Bachelor in banking and finance. The last five years he has been working as the managing director of an IT Security company and as senior vice president at BBS Group. Before that he has held various management position in Siemens Norway, Siemens Headquarter and KPMG. Falcke was appointed as vice president operations in 2008.


CHAPTER 5: INVESTOR INFORMATION

Data Respons ASA is listed on the Oslo Stock Exchange (Ticker: DAT), and is included in the information technology index. The company has offices in Denmark, Finland, Germany, Norway, Sweden and Taiwan.

INVESTOR INFORMATION

Data Respons places great importance on providing UP-TO-DATE INFORMATION on its activities and financial development to share-holders and other parties with interests in the capital market.

TRADING AND TRANSACTIONS 2008 2007Number of transactions 3 930 7 276Average number of transactions per day 16 29Number of shares traded (millions) 15.4 39.2

SHAREHOLDER STRUCTURE 2008 2007Number of shareholders 1222 1 298Foreign ownership 10.6 % 6.4%Number of shares owned by Data Respons ASA 157 000 63 000Number of shares outstanding (millions) 42.4 37.3

ANALYST COVERAGE

SHARE PRICE PERFORMANCE

FINANCIAL CALENDAR 2009

22.04.09 Presentation of Q1 0929.04.09 Annual General Meeting28.05.09 Capital Markets Day10.07.09 Presentation of Q2 0914.10.09 Presentation of Q3 0927.01.10 Presentation of Q4 09

SHARE INFORMATION 2008 2007Highest price (NOK) 17.20 17.40Lowest price (NOK) 8.00 12.20Price at year end (NOK) 8.70 17.20Market value (NOK millions) 368.5 641Dividend per share 0 0

ABG Sundal CollierHallgeir [email protected]

Pareto SecuritiesThomas Nielsen [email protected]

Orion SecuritiesStig R. [email protected]

CarnegieEspen Torgersen [email protected]

6

9

12

15

18

50

100

150

200

250

2004 2005 2006 2007 2008 2009

DAT OSE Information Technology

Data Respons believes that it is important to have an open and active dialogue with the stock market , and all shareholders are treated equally. The company has been awarded Oslo Stock Ex-change’s Information Symbol for good information practices.


CHAPTER 5: INVESTOR INFORMATIONGrowth drivers

INCREASED USE OF COMPUTER INTELLIGENCEThe demand for embedded solutions is driven by an even greater demand for new functionality , increasing complexity and technology content in the products for OEM companies, system integrators and product suppliers. Data Respons has systematically built up a customer base with broad market access, which provides good exposure to the demand for embedded solutions in different market segments.

GROWTH IN SOLUTIONSOur customers continuously face demands for new functionality and increased technology content, which entails continual upgrades and product development with shorter time to market. The complexity is increasing. The expertise needed to develop embedded solutions is very specialised, and it is often beyond the scope of the customer’s core expertise. This has resulted in many companies choosing to purchase complete solutions.

GROWTH IN NEW REGIONSOrganic growth is the primary focus of Data Respons. Data Respons has a tried and tested business model that contributes to rapid establishment in new markets. A strong global partnership structure provides access to leading technology and competitive terms. New areas are under continuous evaluation. Local presence is necessary in order to maintain close contact with customers and expand our customer base.

GROWTH THROUGH ACQUISITIONSData Respons constantly focuses on acquisition opportunities that can contribute to strengthening the company’s position in the form of expertise, market access and an improved customer structure. This provides a foundation for the development of new solution customers, whether they are existing product or service customers.

GROWTH DRIVERS


CHAPTER 5: INVESTOR INFORMATIONKey figures

NOK 1 000 2008 2007 2006 2005 2004

income statementOperating revenue 818 496 635 047 393 043 267 156 240 406

Operating expenses 756 087 582 010 370 786 253 937 226 293

EBITDA 62 409 53 037 22 257 13 219 14 113

Depreciation and amortisation 7 515 5 556 2 794 1 827 1 941

Operating profit/loss 54 893 47 481 19 463 11 392 12 172

Profit/loss before tax and minority interests 56 157 46 586 20 359 11 409 11 821

Net profit/loss after tax 39 439 32 939 38 407 8 104 8 094

balanceTotal assets 689 039 503 326 366 449 237 534 176 734

Equity 407 156 270 705 235 722 152 104 104 289

Cash and cash equivalents 55 331 49 347 29 411 48 266 45 158

key figuresRevenue growth 28.9% 61.6% 47.1% 11.1% 34.1%

Gross margin 57.1% 52.6% 46.3% 46.9% 48.2%

EBITDA margin 7.6% 8.4% 5.7% 4.9% 5.9%

EBIT margin 6.7% 7.5% 5.0% 4.3% 5.1%

Net profit margin 4.8% 5.2% 9.8% 3.0% 3.4%

Cash flow from operations 50 698 42 843 (2 448) (12 188) (3 009)

Return on equity 11.6% 13.0% 19.8% 6.3% 9.0%

Return on total assets 9.2% 10.9% 6.4% 5.5% 8.2%

Liquidity ratio 132.0% 132.7% 215.6% 233.9% 200.0%

Equity ratio 59.1% 53.8% 64.3% 64.0% 59.0%

Working capital 22 187 9 314 72 882 44 427 19 809

key figures for sharesEarnings per share (EPS), basic (NOK) 0.99 0.89 1.07 0.26 0.27

Cash flow per share from operations (NOK) 1.27 1.16 (0.07) (0.39) (0.11)

Dividend per share (NOK) - - - - -

Book equity per share (NOK) 9.6 7.3 6.4 4.5 3.5

Number of shares as of 31 December 42 361 731 37 273 746 36 880 246 33 469 264 29 665 464

Average number of shares 39 931 700 37 086 767 35 728 782 31 197 032 29 415 000

Average number share transactions per day 16 29 29 20 4

Share price as of 31 December (NOK) 8.70 17.20 12.65 13.90 9.50

Market capitalisation (NOK million) 368.5 641.1 466.5 465.2 281.8

Return on equityProfit/loss for the year / Average equity

Return on total assetsEBIT / Average total assets

Liquidity ratioCurrent assets / current liabilities

Equity ratioEquity / Total assets

Working capital(Current receivables + Inventories) - Current liabilities

Earnings per share (EPS)For calculation of EPS, see Note 8

definitions

KEY FIGURES


CHAPTER 5: INVESTOR INFORMATIONKey figures

OPERATING REVENUE (NOK million)KEY FIGURESREVENUE PER COUNTRY

24%

36%35%

5%

GROUP


DENMARK


GERMANY


NORWAY


SWEDEN



Employees 511 376

20072006 200820050

50

100

150

200

250

2004

24%

5%

35%

36%



Employees 95 77


Operating revenue 38.4 16.9EBITDA 3.2 -3.4Order backlog 23 11

Employees 57 9



Employees 162 137



Employees 197 153

20072006 200820050

200

400

600

800

1000

2004

20072006 2008200505

10152025303540

2004

20072006 200820050

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100

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300

2004

20072006 200820050

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100

150

200

250

300

2004

Denmark

Norway

Sweden

Germany


DIRECTORS’ REPORT

EBITDA (NOK million)

REVENUE (NOK million)

KEY FIGURES

NOK million 2008 2007Operating revenue 818.5 635.0EBITDA 62.4 53.0Order backlog 515 389Order intake 945 763

Employees 511 376

20072006 200820050

200

400

600

800

1000

2004

Profitability in all countries, a strong cash flow and an order intake close to a billion sums up 2008.

annual financial statements

The company fulfils the requirements neces-sary to operate as a going concern, and the 2008 financial statements have been pre-pared on the basis of this assumption. As a listed company Data Respons ASA prepared the consolidated financial statements for the Data Respons Group for the financial year 2008 in accordance with IFRSs (International Financial Reporting Standards).

income statementThe report includes comparisons with figures for the same period in 2007 (in brackets).

Data Respons’ operating revenue for 2008 was NOK 818.5 million (635.0), a growth of 29%. EBITDA was NOK 62.4 million (53.0), up 18% from last year. The profit before tax was NOK 56.2 million (46.6), a growth of 21%. The order intake during 2008 totalled NOK 945 million (763), an increase of 24%.

highlights in 2008

strong performanceOperating revenue: 29% growth from 2007EBITDA: 18% growth from 2007 Order intake: 24% growth from 2007 Order backlog: 32% growth from 2007 Embedded solutions sales: 19% growth from 2007

strategic acquisitionsLundinova AB, Lund, Sweden Ipcas GmbH, Erlangen, Germany

establishment in new regionsStavanger, Norway Västerås, Sweden

CHAPTER 6: DIRECTORS’ REPORT

20072006 200820050

1020304050607080

2004


Data Respons has had a RECORD YEAR with high growth and order intake, profitability in all regions, strong cash flow and increased order backlog.

Our total order backlog ended at NOK 515 million (389), up 32% from 2007. Cash gener-ated from operating activities totalled 50.7 mil-lion (42.8), an increase of 18% from last year.

Data Respons has prepared pro forma state-ments per country where historical figures from acquisitions are included, as shown in Note 21. The group had pro forma (organic) revenue growth in 2008 of 12%, and a pro-forma EBITDA growth of 6%.

The Board of Directors are pleased with the company’s progress in 2008. All primary busi-ness units have performed well in the current volatile environment and have contributed positively during the year. Our diversified large-cap customer portfolio, a strengthened organisation internationally and a record high order backlog make us well prepared for con-tinued future growth.

Data Respons is building a strong position in the growing embedded solutions market in Europe, and has a vision of becoming a leading company in Europe within this market by 2010.

balance sheet, liquidity and cash flowThe group had total assets of NOK 689.0 mil-lion as of 31 December 2008. The group’s eq-uity was NOK 407.2 million, which gives an equity ratio of 59%.

Current assets amount to NOK 319.6 million and current liabilities were NOK 242.0 million. Of the non-current assets of NOK 369.5 mil-lion, deferred tax assets were NOK 26.5 mil-lion, while intangible assets (goodwill) amount to NOK 327.9 million. A provision of NOK 91.0 million has been made to cover estimated future payments related to earn-out agreements with acquired companies. Of this, NOK 59.0 million is classified as a current liability. The amount is based on best estimates, and is subject to chang-es in earnings as well as currency exchange rate. See Note 2, 4 and 12 for further specification.

For 2008 cash flow from operations was NOK 50.7 million. The group has no interest-bearing debt and the liquidity situation is good. Cash reserve as per 31 December 2008 amounts to NOK 55.3 million.

operationsData Respons supplies embedded solutions to

leading OEM companies, system integrators and vertical product suppliers in a number of market segments such as defence, offshore, automation, medical equipment, surveillance, transport, tel-ecommunications and industry in general. Data Respons ASA is listed on the Oslo Stock Exchange (Ticker: DAT) and is included in the information technology index. The group has operations in Norway, Sweden, Denmark, Germany and Fin-land. Data Respons is exposed to interest-rate risk, exchange-rate risk, credit risk and other fi-nancial risks. Overall these risks are regarded as low, see Note 18 for further information.

markets

norwayOperating revenue in 2008 was NOK 298.8 million (287.9), a growth of 4%. The EBITDA for the period was NOK 36.7 million (39.7), a reduction of 8%.

The Board is pleased with the development in 2008. The main reason for the reduction in profit margin is last year’s reversal of pension liability which had a one-off effect of NOK 3 million in 2007. Order backlog remains strong during 2008. Based on increased number of large-cap recurring solution customers, high customer activity, a good pipeline and a record high order backlog, the unit is positioned for further growth.

swedenOperating revenue in 2008 was NOK 294.4 million (183.7), a growth of 60%. The EBITDA for the period was NOK 17.7 million (14.9), up 19% from last year.

Data Respons Sweden had a strong year in 2008, with good growth in revenue and EBITDA. In January 2008 Data Respons acquired Lundinova AB with offices in Lund in Sweden covering the important Öresund region. By opening new of-fices, the company has further increased its geo-graphical deployment in important regions and strengthened the total competency platform; both increasing the ability to win new major embedded solution contracts.

denmarkOperating revenue in 2008 was NOK 200.3 million (153.5), a growth of 31%. The EBITDA for the period was NOK 17.7 million (14.4), up 23% from last year.



Data Respons CONTINUES THE GROWTH in the solution segment. The delivery of solutions secures long-term, strategically important customer relationships.

Data Respons Denmark showed strong per-formance during 2008. The Board is particularly pleased with the positive development in the so-lutions segment and the deployment in impor-tant geographical areas like the Jutland region.

germanyOperating revenue in 2008 was NOK 200.3 million (153.5), a growth of 31%. The EBITDA for the period was NOK 17.7 million (14.4), up 23% from last year.

Germany will be an important market for Data Respons in the years to come. The Board is pleased that the German operation is profit-able with a strong pro forma (organic) growth. In addition to the operation in Karlsruhe, Data Respons expanded its geographical deployment through the acquisition of Ipcas GmbH in Sep-tember 2008. Ipcas has 50 employees and of-fices in Erlangen (outside of Nuremberg). The company has a highly regarded position and long-term relationships with large industrial groups in the region.

business areas

Data Respons allocates its sales to three busi-ness areas: Solutions, Products and Services.

solutionsOperating revenue in 2008 was NOK 396.8 million (334.3), a growth of 19%.

The group continues its growth in the solution segment. The delivery of solutions secures long-term, strategically important customer relationships. We continuously see increasing contract sizes and volumes within this seg-ment. The progress is due to Data Respons’ position as a complete solutions provider with broad competency and international expan-sion.

productsOperating revenue in 2008 was NOK 74.2 mil-lion (86.6), a decrease of 14%.

Data Respons is the leading channel for embed-ded solutions products in the Nordic region.

Product sales showed a reduction in 2008 mainly due to a larger part of our product deliveries being integrated as components in solutions.

servicesOperating revenue in 2008 was NOK 347.5 million (214.1), a growth of 62%.

The demand for services from industrial and technology companies has been good in 2008. The group has a strong pipeline of so-lution projects and development contracts in the period. Towards the end of the year we have seen signs of a more competitive services market, especially in Sweden. The expansion of new competency units in impor-tant customer regions has provided a strong growth of service sales in Sweden. Building a larger competence platform internationally is strategically important in order to develop new solution customers and to stand out as a complete solutions provider in the market.

organisational structure

At the close of 2008, the group had 511 employees working at 17 offices in Norway (162), Sweden (197), Denmark (95) and Ger-many (57). The average number of employees during the financial year was 14 in the parent company. The average number of employees in The group was 463. There were 74 female employees in the group at the end of the year, 10 of whom were middle managers.

There are currently no female members of Group management. Equal pay for work of equal value, regardless of gender, is empha-sised at Data Respons. The pay and terms of employment for comparable positions are the same for women and men.

work of the board

In 2008 there were 7 directors on the board, 5 of whom were elected by the general meeting and 2 of whom were elected by the employees.

The board generally meets nine times a year, and otherwise as required. In 2008 the board held a total of 12 meetings. The work of the board is governed by detailed rules of pro-cedure. The board also has an annual pro-gramme of work including specific topics and fixed items such as the approval of the annual financial statements, interim financial state-ments and budgets. The board is also responsi-ble for overall strategy and for setting long-term

SHARE OF REVENUE

24%

36%35%

5%

REVENUE PER COUNTRY (NOK million)

Country 2008 2007 Change

Norway 298.8 287.9 4%Sweden 294.4 183.7 60%Denmark 200.3 153.5 31%Germany 38.4 16.9 127%

ORDER BACKLOG (NOK million)

20072006 200820050

100

200

300

400

500

600

2004

EMPLOYEES PER COUNTRY 2008

Sweden

Denmark

Norway

Germany

EMPLOYEES PER DIVISION 2008

Administration

Operations

Development

Sales


39%

32%18%

11%

9% 66%

11%

14%

Denmark

Norway

Sweden

Germany


goals, as well as important decisions about ac-quisitions, establishing overseas operations and major investments. In 2008 there were 4 men and 3 women on the board.

corporate governance

aims and guiding principlesThe principal aim of Investor Relations at Data Respons is to create confidence through the equal treatment of all stakeholders in terms of access to financial information. All shares have equal rights and are freely transferable. Data Respons has one class of shares, and each share carries one vote. Data Respons complies with the requirements set out in the Norwegian Companies and Accounting Acts at all times. The company also strives to achieve transpar-ency in relation to financial matters, to help capital markets, shareholders, customers and suppliers assess the company’s situation and fu-ture potential. Data Respons believes that it is important to have an open and active dialogue with the stock market, where all shareholders are treated equally. The company has been awarded the Oslo Stock Exchange’s Informa-tion Symbol for good information practices.

the annual general meetingThe general meeting is the highest decision-making body of the company, and it elects the

shareholders’ representatives and their deputies to the corporate assembly. Complete documents and background information relating to general meeting motions are to be sent out no less than 14 days prior to the meeting being held. Provi-sions are made for the use of proxies if sharehold-ers are unable to attend the general meeting.

nominating committeeData Respons has two nominating committees. One committee is elected by the general meet-ing and makes proposals to the general meeting regarding the election of shareholder-elected members to the board. The other nominating committee is for the election of employee rep-resentatives to the board.

A nominating committee for shareholder-elected members was appointed at the general meeting in 2008. The committee consists of Nils-Henrik Petterson, Haakon Sæter, Albert Collett and Leif Eriksrød, and the committee’s mandate is to nominate candidates for shareholder-elected board members and propose directors’ fees.

board of directorsThe board of directors of Data Respons is re-sponsible for the group’s strategic develop-ment, and it shall keep itself informed at all times of the company’s financial position, as well as adopt plans and budgets for the busi-ness. The board’s role, responsibilities and

work methods have been defined thoroughly in the rules of procedure that were adopted in 2005. The rules of procedure also define the tasks and duties of the CEO in relation to the board in greater detail.

The composition of the board of directors complies with the requirement that the board be independent from the company manage-ment, and independent from major business associates of the company. The Chairman of the board of directors is elected by the gen-eral meeting. Board members are elected for a term of two years. Page [47] of the annual report provides a detailed description of the individual members’ backgrounds, qualifica-tions and shareholdings.

company capitalThe company’s equity is appropriate for the aims, strategy and risk profile communicated to the market. If the capital exceeds the need for realisation of the company’s strategic goals, the company will pay a dividend. The company is currently in a growth phase where it is desirable to reinvest earnings from op-erations to ensure further growth, since this is regarded as the most appropriate for the crea-tion of value for the shareholders.

The company aims to finance its working capi-tal needs from the anticipated revenue growth



through its own resources. Beyond this the board will continuously evaluate the company’s equity needs in connection with possible acqui-sitions or other investments

An increase in the company’s equity will only be proposed if the board of directors believes that it will be in the long-term interests of the shareholders. For significant capital increases, it will be proposed, as a rule, that the share-holders shall have pre-emptive rights in con-nection with the subscription and allotment, even though the general meeting has granted the board certain authorisations to deviate from this in accordance with the adopted framework. In the general meeting, held 29 April 2008, the board was given a general authorisation to increase the share capital by up to 4,000,000 shares, and 1,488,671 shares have been issued in 2008 under this. Further information regard-ing share issues in 2008 is disclosed in Note 8 to the financial statements. The authorisation can be used to issue shares in connection with acquisitions of new companies as part of the company’s strategy, option schemes for key personnel and regular cash issues.

directors’ remunerationDetailed information regarding the remunera-tion of directors and key employees is dis-closed in Note 14 to the financial statements.

The nominating committee proposes the re-muneration of the directors for the coming year to the general meeting. The remunera-tion of directors is not performance-related. Directors are not granted share options.

employee remunerationThe remuneration of the CEO and other mem-bers of the group management is described in Note 14 to the financial statements. Data Respons operated bonus schemes for the other employees in 2008. The schemes vary from country to country, but the common denominator is that they are dependent on positive earnings and revenue growth. They are limited in general to a maximum of 1–2 months’ salary. On 27 April 2006 Data Re-spons established a share option scheme for key employees. This scheme is described in Note 14.

related party transactionsThe board of directors, group management and other key employees are required to re-port any potential related party transactions. Other than ordinary business transactions between group companies there have been no related party transactions in 2008. All transactions within the group are based on ordinary commercial terms using the arm’s length principle.

auditingThe auditor attends the meeting of the board at which the annual financial statements are scrutinised. The auditor also has procedures for reviewing the company’s internal controls with the board of directors. Specified remuneration for the auditor is described in Note 14.

corporate social responsibility

Taking overall responsibility is an impor-tant core value at Data Respons. The group aspires to be a responsible corporation in terms of labour standards, human rights and environmental protection. The company has implemented corporate social responsibility policies publicly available. The policies cover governance and integrity management, en-vironmental protection, human rights and labour standards, and are in accordance with the UN Global Compact Principles.

health, safety and environment (hse)Data Respons ASA’s operations are not regu-lated by environmental licences or injunc-tions. The company does not pollute the external environment. Average sick leave over the course of the year was 2.3%, and none of the group’s subsidiaries recorded occupation-al accidents that resulted in personal injury



We confirm that the financial statements for the year 2008 have been prepared, to the best of our knowledge, in accordance with INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS).

or property damage. The working environ-ment is regarded as good, and improvement measures are implemented continuously. Em-ployees and management have co-operated constructively, which has had a positive im-pact on our operations.

allocation of profit for the year

Data Respons ASA (the parent company) re-ported a profit before tax of NOK 40.5 million (21.1 million) in 2008. The net profit for the year was NOK 34.1 million (18.9 million).

The board of directors proposes that the prof-it for the year of NOK 34.1 million be trans-ferred to other reserves and that no dividends be distributed for 2008. As of 31 December 2008 the parent company had an equity of NOK 390.1 million, NOK 55.4 million of which comprised distributable reserves.

future prospects

We believe that the long-term outlook for the embedded solutions market is prosper-ous. The need for more intelligent products, better infrastructure and enhanced user functionality is necessary for improving our society. Advanced computer technology and ability to make solutions is vital for this de-velopment. Data Respons is well positioned in the industrial part of this market.

The world is affected by an economic re-cession. The environment is volatile which

makes future predictions very challenging. Throughout 2008 the company experienced a healthy demand from industrial and technol-ogy companies in our main markets and was hardly impacted at all in 2008. However, we see it as unlikely that this will be the case in 2009 and have prepared the company for the situation. The board is continually monitoring the market situation and emhpasise that the company takes decisive action in response to a changing market situation when appropriate.

The market for embedded solutions is expected to follow a long-term growing trend, despite anticipated short-term effects due to the above mentioned economic climate. The demand is driven by the need for new and cost-effective computer solutions for OEM companies, sys-tem integrators and vertically integrated sup-pliers. Our experience is that more and more companies choose to cooperate closely with solid solution providers with complete/to-tal solution capabilities, rather than shopping around or developing everything in-house. This trend is reinforced by shorter time to mar-ket in combination with the need for more intelligent computer technology content in products, equipment and infrastructure.

Other important decision parameters are cost savings, increased efficiency and more func-tionality. These factors will often amplify during slowdowns. Data Respons is well positioned as a complete solution supplier in the Nordic and increasingly in the German market too.

Data Respons is a well diversified company. The company has customers in a wide range

of vertical industries, has a good geographi-cal span and a balanced portfolio of large-cap customers.

The Board of Directors are comfortable with the company’s balance sheet and financial position. Data Respons has an equity ratio of 59%, no interest-bearing debt and a cash re-serve of NOK 55 million in addition to unused credit facilities of NOK 80 million. Long-term organic growth is Data Respons’ main focus. In addition, acquisitions are being considered in the Nordic region and Germany. The group’s growth and profits could fluctuate between quarters. Our history shows that the company has shown good capabilities for growth, even in economic downturns.

Based on the current demand from our cus-tomers, a solid order intake and a record high order backlog, the company expects further growth and profitability in the future.

declaration on the annual accountsWe confirm that the financial statements for the year 2008 have been prepared, to the best of our knowledge, in accordance with International Financial Reporting Standards (IFRS), provides a fair and accurate view of the company’s and group’s consolidated assets, liabilities, financial position and results of op-erations, and that the annual report includes a fair review of the development, results and position of the company and group, together with a description of the most central risks and uncertainty factors facing the companies.


THE BOARD OF DIRECTORS OF DATA RESPONS ASAHøvik, 19 March 2009

Svein R. GoliCHAIRMAN OF THE BOARD

Mikkel HelwegEMPLOYEE REPRESENTATIVE

Steinar HoenMEMBER OF THE BOARD

Anne-Cecilie Fagerlie MEMBER OF THE BOARD

Lars-Olof GustavssonMEMBER OF THE BOARD

Ingvild Myhre MEMBER OF THE BOARD

Kenneth RagnvaldsenCEO

Anne Helene TrytiEMPLOYEE REPRESENTATIVE


SVEIN RAMSAY GOLI CHAIRMAN OF THE BOARD

Number of shares: 150,000 Number of options: 0

Svein Ramsay Goli (born 1940) was elected as chairman of the board in April 2006 and has been a member of the board since 2002.Goli is the chairman of the board of Norman ASA and has a Master of Business Administration from Copenhagen Business School (CBS).

He was previously a sales director at IBM and subsequently vice president of Oracle with responsibility for the Nordic region. Goli currently works primarily through his own companies, with a primary emphasis on ICT and business consultancy.

The BOARD OF DIRECTORS is responsible for Data Respons’ strategic development. It must keep itself informed about the company’s finan-cial position and adopt plans and budgets for the company’s business.

CHAPTER 6: DIRECTORS’ REPORTThe board of directors

ANNE-CECILIE FAGERLIEMEMBER OF THE BOARD Shares: 0 Share options: 0

Fagerlie (born 1958) was elected to the board in April 2006. Fagerlie is the General manager of Avanade Nordic. She has an advanced engineering degree in computer science from the Norwegian Institute of Technology (NTH) and studies in economics and management from the Norwegian School of Manage-ment (BI). Fagerlie is a member of the board of Nordic Semiconductor ASA and yA Bank og Forsikring.

LARS-OLOF GUSTAVSSONMEMBER OF THE BOARD Shares: 20,000 Share options: 0

Gustavsson (born 1943) was elected to the board in April 2006. He is one of the founders of Four Season Venture in Sweden and Norway, and is cur-rently the chairman of the board of Four Season Ventures Capital AB and Four Seasons Venture II AS, Broström AB and the Finja Betong-Group. Gus-tavsson is also a director of Siem Capital AB, SJ AB and Mikroponent AB.

ANNE-HELENE TRYTIEMPLOYEE REPRESENTATIVE Shares: 6,653 Share options: 0

Tryti (born 1967) was elected as an employee rep-resentative in September 2007. She received an education in administrative data processing and human resources in addition to organisational sub-jects at the Norwegian School of Economics and Business Administration (NHH). Tryti has worked in Data Respons Norge AS since 1999.

MIKKEL HELWEGEMPLOYEE REPRESENTATIVE Shares: 1,601 Share options: 0

Helweg (born 1966) was elected to the board as an employee representative in April 2004. He has worked at Data Respons since 1999 and is currently the strategic account manager at our Kongsberg office . Helweg has over 20 years’ experience in the electronics, networking and computer industries.

INGVILD MYHREMEMBER OF THE BOARD Shares: 10,000 Share options: 0

Myhre (born 1957) was elected to the board in April 2006. She is the group chief executive of ID Grup-pen/Network Norway and has previously been the president and CEO of Telenor Mobil AS and director of the Norwegian Red Cross. She is a member of the board of Telecomputing, the Norwegian National In-surance Scheme Fund, Simrad Optronics, Consorte, Simula Research Lab and Narvik Science Park.

STEINAR HOENMEMBER OF THE BOARD Shares: 120,000 Share options: 0

Hoen (born 1971) was elected to the board in April 2008. He has previously worked as a stockbroker in First Securities. Today he is the manager for the Bislett games and runs two wholly owned investment com-panies. Hoen has an economics degree from SMU in Dallas, USA and from the Norwegian School of Man-agement BI. He is the chairman of the Board in Laurell AS, Specter Invest AS and Dykk AS.


FINANCIAL STATEMENTS AND NOTES

CHAPTER 7: FINANCIAL STATEMENTS AND NOTES


Data Respons’ FINANCIAL STATEMENTS for the year 2008 have been prepared in accordance with International Financial Reporting Standards (IFRS).

CHAPTER 7: FINANCIAL STATEMENTS AND NOTESConsolidated income statement

GROUP DATA RESPONS ASA

NOK 1000 Note 2008 2007 2006 2008 2007 2006

Sales revenue 1 818 496 635 047 393 043 19 228 12 683 15 402

Operating revenue 818 496 635 047 393 043 19 228 12 683 15 402

Cost of goods sold 350 873 300 884 210 952 - 322 54

Payroll expenses 9,14 338 965 229 672 123 938 23 083 18 021 15 436

Depreciation and amortisation 2 7 515 5 556 2 794 1 089 710 388

Other operating expenses 2,17 66 249 51 455 35 896 9 004 6 960 6 975

Operating profit/loss 54 893 47 481 19 463 -13 947 -13 330 -7 451

Group contribution and dividends from subsidiaries - - - 55 075 34 912 18 826

Other financial income 15,18 7 793 2 783 2 384 765 290 1 947

Other financial expenses 15,18 -6 530 -3 678 -1 488 -1 387 -770 -162

Profit/loss before tax 56 157 46 586 20 359 40 505 21 102 13 160

Income tax expense 10 -16 718 -13 647 18 048 -6 444 -2 199 21 287

Profit/loss for the year 39 439 32 939 38 407 34 061 18 903 34 447

attributable to

Equity holders of the parent 39 439 32 939 38 215

Minority interest - - 192

allocationsFrom/to other equity 34 061 18 903 34 447

Earnings per share, basic (NOK) 8 0.99 0.89 1.07

Earnings per share, diluted (NOK) 8 0.95 0.86 1.03

CONSOLIDATED INCOME STATEMENT



NOK 1000 Note 2008 2007 2006 2008 2007 2006

non-current assetsIntangible assets 2,4 327 926 222 492 127 702 - - -

Machinery and equipment 2 15 038 9 272 7 851 2 026 2 219 1 368

Shares in subsidiaries 3 - - - 464 727 380 125 262 088

Investments in other shares and joint ventures 34 34 34 - - -

Deferred tax assets 10 26 486 33 388 40 077 34 757 41 202 43 401

Total non-current assets 369 484 265 186 175 664 501 511 423 545 306 857

current assetsInventories 5,12 71 713 60 100 43 686 - - -

receivables

Trade receivables 6,7,12 167 432 114 708 101 969 646 406 1 903

Other receivables 6,7 25 079 13 986 15 719 4 786 6 720 15 191

Total receivables 192 511 128 693 117 688 5 433 7 126 17 094

Cash and cash equivalents 16 55 331 49 347 29 411 - - 10 069

Total current assets 319 555 238 140 190 785 5 433 7 126 27 163

Total assets 689 039 503 326 366 449 506 943 430 671 334 020

ASSETS AS OF 31 DECEMBER

CONSOLIDATED BALANCE SHEET

CHAPTER 7: FINANCIAL STATEMENTS AND NOTESConsolidated balance sheet


GROUP DATA RESPONS ASAEQUITY AND LIABILITIES AS OF 31 DECEMBER

NOK 1000 Note 2008 2007 2006 2008 2007 2006

equityshare capital

Issued capital 8 21 181 18 637 18 440 21 181 18 637 18 440

Treasury shares 8 -79 -32 -32 -79 -32 -32

Share premium 278 845 218 350 213 007 278 845 218 350 213 007

Total share capital 299 947 236 955 231 415 299 947 236 955 231 415

retained earnings

Other equity 107 210 33 750 4 307 90 168 55 702 35 643

Total retained earnings 107 210 33 750 4 307 90 168 55 702 35 643

Minority interests - - - - - -

Total equity 407 156 270 705 235 722 390 114 292 658 267 058

liabilitiesnon-current liabilities

Deferred tax liabilities 10 3 959 2 435 - - - -

Pension liabilities 9 3 805 2 891 6 568 282 262 208

Other non-current liabilities 12 32 082 47 816 35 667 32 082 47 606 35 805

Total non-current liabilities 39 845 53 143 42 235 32 364 47 868 36 013

current liabilities

Interest-bearing loans and borrowings 12,16 - - - 13 945 19 888 -

Trade payables 73 238 31 413 37 586 1 786 1 151 533

Income tax payable 10 5 760 5 858 2 199 - - -

Public duties payable 36 442 27 718 17 694 778 892 2 011

Other current liabilities 11 126 597 114 489 31 013 67 957 68 215 28 405

Total current liabilities 242 038 179 479 88 492 84 466 90 146 30 949

Total liabilities 281 883 232 622 130 727 116 829 138 014 66 962

Total equity and liabilities 689 039 503 326 366 449 506 943 430 671 334 020

CONSOLIDATED BALANCE SHEET

CHAPTER 7: FINANCIAL STATEMENTS AND NOTESConsolidated balance sheet

THE BOARD OF DIRECTORS OF DATA RESPONS ASAHøvik, 19 March 2009

Svein R. GoliCHAIRMAN OF THE BOARD

Mikkel HelwegEMPLOYEE REPRESENTATIVE

Steinar HoenMEMBER OF THE BOARD

Anne-Cecilie Fagerlie MEMBER OF THE BOARD

Lars-Olof GustavssonMEMBER OF THE BOARD

Ingvild Myhre MEMBER OF THE BOARD

Kenneth RagnvaldsenCEO

Anne Helene TrytiEMPLOYEE REPRESENTATIVE


GROUP

DATA RESPONS ASA

*) Transaction expenses of NOK 1,846,000 have been deducted

CONSOLIDATED EQUITY STATEMENT

NOK 1000 Total Equity

NoteIssuedcapital

Share premium

Treasuryshares

Other equity

Total

Equity as of 1 January 2006 16 735 171 239 -32 426 188 368 188 368

Employee share option scheme 14 - - - 771 771 771

Profit/loss for the year - - - 34 447 34 447 34 447

Issue of share capital* 8 1 705 41 768 - - 43 473 43 473

Equity as of 31 December 2006 18 440 213 007 -32 35 643 267 058 267 058

Employee share option scheme 14 - - - 1 156 1 156 1 156


Issue of share capital 8 197 5 343 - - 5 540 5 540


Employee share option scheme 14 - - - 1 156 1 156 1 156


Purchase/sale of treasury shares 8 - - -47 -751 -798 -798

Issue of share capital 8 2 544 60 495 - - 63 039 63 039


NOK 1000 Majority interests Minority interests Total equity

NoteIssuedcapital

Sharepremium

Treasuryshares

Translationdifferences

Other equity

Total

Equity as of 1 January 2006 16 735 171 239 -32 -1 153 -34 362 152 427 -323 152 104

Net reduction in minority interests - - - - - - 131 131

Currency translation differences - - - 836 - 836 - 836

Employee share option scheme 14 - - - - 771 771 - 771

Profit/loss for the year - - - - 38 215 38 215 192 38 407

Issue of share capital* 8 1 705 41 768 - - - 43 473 - 43 473

Equity as of 31 December 2006 18 440 213 007 -32 -317 4 624 235 722 - 235 722

Currency translation differences - - - -4 652 - -4 652 - -4 652

Employee share option scheme 14 - - - - 1 156 1 156 - 1 156

Profit/loss for the year - - - - 32 939 32 939 - 32 939

Issue of share capital 8 197 5 343 - - - 5 540 - 5 540

Equity as of 31 December 2007 18 637 218 350 -32 -4 969 38 719 270 705 - 270 705

Currency translation differences - - - 33 615 - 33 615 - 33 615

Employee share option scheme 14 - - - - 1 156 1 156 - 1 156

Profit/loss for the year - - - - 39 439 39 439 - 39 439

Purchase/sale of treasury shares 8 - - -47 - -751 -798 - -798

Issue of share capital 8 2 544 60 495 - - - 63 039 - 63 039

Equity as of 31 December 2008 21 181 278 845 -79 28 646 78 563 407 156 - 407 156

CHAPTER 7: FINANCIAL STATEMENTS AND NOTESConsolidated equity statement



NOK 1000 Note 2008 2007 2006 2008 2007 2006

cash flow from operating activitiesOperating profit/loss 54 893 47 481 19 463 -13 947 -13 330 -7 451

Income tax paid -8 667 -5 260 -715 - - -

Depreciation and amortisation 7 515 5 556 2 794 1 089 710 388

Employee share option scheme 1 117 1 195 771 1 117 1 156 771

Change in inventories 4 -10 975 -16 614 -17 866 - - -

Change in trade receivables 4 -43 775 13 958 -8 246 -240 1 497 16 247

Change in trade payables 4 40 052 -18 584 -5 915 635 618 -736

Change in provisions for pensions 9 291 -3 677 2 472 19 54 739

Change in other accruals 4 10 247 18 788 4 794 2 177 -12 442 24 530

Net cash flow from operating activities* 50 698 42 843 -2 448 -9 151 -21 736 34 488

cash flow from investing activitiesAcquisition of subsidiaries, net of cash acquired 4 -34 449 -16 639 -46 825 - - -

Dividends from subsidiaries - - - 35 201 15 143 -

Purchase of machinery and equipment 2 -9 401 -5 915 -4 646 -896 -1 671 -1 241

Proceeds from sale of machinery and equipment - - 82 - - -

Interest received 15 3 559 2 037 1 636 202 279 1 947

Interest paid 15 -2 845 -1 649 -116 -1 246 -508 -162

Purchase of intangible assets 2 - - -574 - - -

Purchase of financial assets 3 - - -34 -49 837 -41 232 -103 461

Net cash flow from investing activities -43 136 -22 166 -50 477 -16 575 -27 989 -102 917

cash flow from financing activitiesNet change in overdraft facilities - - -2 706 -5 943 19 888 -

Group contributions - - - 36 310 19 768 18 826

Proceeds from issue of shares 8 - - 35 829 - - 35 829

Purchase/sale of treasury shares 8 -4 640 - - -4 640 - -

Net cash flow from financing activities -4 640 - 33 123 25 727 39 656 54 655

Net change in cash and cash equivalents 2 922 20 677 -19 802 0 -10 069 -13 774

Cash and cash equivalents at the start of the period 49 347 29 411 48 266 0 10 069 23 843

Exchange gains/losses on cash and cash equivalents 3 061 -741 947 - - -

Cash and cash equivalents at the end of the period 55 331 49 347 29 411 0 0 10 069

* The company acquired subsidiaries during the year. The opening balance sheet for these acquisitions must be taken into account for the calculation of changes in current asset and liability items, so the reported figures will not be in agreement with changes in the consolidated balance sheet figures. Reference is made to Note 4 for additional information on the effects of business combinations.

CONSOLIDATED CASH FLOW STATEMENT

CHAPTER 7: FINANCIAL STATEMENTS AND NOTESConsolidated cash flow statement


ACCOUNTING PRINCIPLESgeneral informationData Respons ASA is a public limited compa-ny registered in Norway. The company’s head office is located at Sandviksveien 26, 1323 Høvik, Norway. The group’s business opera-tions are described in Note 1.

accounting principlesThe Data Respons Group’s consolidated fi-nancial statements and the company financial statements of Data Respons ASA for the fi-nancial year of 2008 have been prepared in accordance with International Financial Re-porting Standards (IFRSs) and the interpreta-tions set out by the International Accounting Standards Board, as approved by the European Union. The financial statements are based on the historical cost principle with the excep-tion of financial derivatives. The consolidated financial statements have been prepared us-ing consistent accounting principles for simi-lar transactions and events under otherwise similar circumstances.

standards, amendments and interpretations published but not yet implementedThe standards and interpretations listed below have been published, but are not yet effective at the date of approval of the financial statements.

IFRIC 12 Service Concession Arrangements I FRIC 13 Customer Loyalty ProgrammesIFRIC 14 IAS 19 The Limit on a Defined Ben- efit Asset, Minimum FundingIFRIC 15 Agreements for the Construction of Real EstateIFRIC 16 Hedges of a Net Investment in a Foreign Operation

IFRIC 17 Distributions of Non-Cash Assets to OwnersIFRIC 18 Transfer of Assets from Customers

The above mentioned interpretations are not expected to be relevant for the group. The fol-lowing new standards and amendments to ex-isting standards are published by IASB, but not implemented by the group. These will not be implemented until effective date, unless other-wise decided:

Revised IFRS 3 Business Combinations IFRS 8 Operating Segments Revised IAS 1 Presentation of Financial StatementsRevised IFRS 2 Share-based payments Revised IAS 27 Consolidated and Separate Financial Statements

Revised IFRS 3 is expected to impact the accounting for future acquisitions regarding minority interest, goodwill, contingent con-sideration and transaction costs. Also chang-es in IFRS 8, revised IAS 1 and revised IAS 27 will lead to changes in the group finan-cial statements, however no such significant changes are expected. Revised IFRS 2 is not expected to have impact on the group finan-cial statements.

Revised IAS 23 Borrowing Costs revised IAS 32 Financial Instruments: Disclosures and PresentationRevised IAS 39 Financial Instruments: Recognition and Measurements

The above mentioned standards are not ex-pected to have an effect on the group ac-counts. The IASB Annual Improvement Project has approved changes in several standards

with effect from 2009. Changes that might af-fect recognition, measurement and disclosure are listed below.

Revised IFRS 5 Non-current Assets Held for Sale and Discontinued OperationsRevised IAS 19 Employee Benefits Revised IAS 20 Accounting for Govern- ment Grants and Disclosure of Govern-ment AssistanceRevised IAS 36 Impairment of Assets Revised IAS 38 Intangible Assets

functional currency and presentation currencyThe group presents its financial statements in NOK. This is also the functional currency of the parent company. Subsidiaries with a dif-ferent functional currency are translated using the closing date rate for balance sheet items and an average rate for the income statement. Translation differences are charged against equity. When a foreign subsidiary is partially or completely disposed of or sold, translation differences connected to the subsidiary are recognised in the income statement.

consolidationThe consolidated financial statements include Data Respons ASA and companies in which Data Respons ASA has a controlling interest. A controlling interest is normally achieved when the group owns more than 50% of the shares in the company or the group is in a position to exercise actual control over the company. Minority interests are included in the group’s equity.

The consolidated financial statements include the parent company Data Respons ASA and the following subsidiaries:

CHAPTER 7: FINANCIAL STATEMENTS AND NOTESAccounting principles


Data Respons’ FINANCIAL STATEMENTS for the year 2008 have been prepared in accordance with International Financial Reporting Standards (IFRS).

Data Respons Norge AS (100%) Digitas AS (100%) Certified Computer Technology AS (CCT) (100%) Centrex AS (100%) Memstore AS (100%) Data Respons AB (Sweden) (100%) Data Respons Components AB (Sweden) (100%) Data Respons Syrén AB (Sweden) (100%) Sylog Sverige AB (Sweden) (100%) Professional Finder AB (Sweden) (100%) Lundinova AB (Sweden) (100%) Data Respons OY (Finland) (100%) Data Respons A/S (Denmark) (100%) Data Respons GmbH (Germany) (100%) Ipcas GmbH (Germany) (100%)

The consolidated financial statements show the overall financial results and the overall fi-nancial position when presenting the parent company Data Respons ASA and its control-ling interests in other companies as a single fi-nancial entity. Companies in which the group has a sole controlling interest (subsidiaries) have been fully consolidated line by line in the consolidated financial statements. The Profit/loss for the year and share of equity attributed to minority interests are presented on sepa-rate lines. Intercompany transactions and bal-ances have been eliminated. The consolidated financial statements have been prepared us-ing uniform principles, which means that the subsidiaries follow the same accounting prin-ciples as the parent company, and that these principles have been applied consistently over time. Acquired subsidiaries are recognised in the consolidated financial statements based on the historical cost to the parent company. Historical cost includes all expenses directly attributable to the purchase, as well as best estimate on future additional payments based on earn-out agreements. The historical cost is allocated to identifiable assets and liabilities in the subsidiary, which are recorded in the consolidated financial statements at fair value at the time of acquisition. Identifiable assets are defined as both tangible and intangible as-sets, excluding goodwill. Any excess value or shortfall in value beyond that which can be attributed to identifiable assets and liabilities is recognised in the balance sheet as goodwill. Goodwill is treated as a residual value, and it is recognised in the balance sheet in the amount observed in the acquisition transaction. Excess values in the consolidated financial statements are depreciated on a straight-line basis over the anticipated economic life of the acquired

assets, less any residual value. Goodwill and excess values attributed to intangible assets with an indeterminable useful life are not de-preciated, but are tested for impairment in ac-cordance with IFRS.

classification and valuation of balance sheet items Current assets and current liabilities comprise of items that fall due within one year of the balance sheet date, as well as items related to the operating cycle. Other items are classified as non-current assets or non-current liabilities. Financial instruments are classified and meas-ured in accordance with IAS 39 Financial Instru-ments; Recognition and Measurement. For Data Respons ASA the only relevant categories are loans and receivables. Financial assets with fixed or determinable cash flows that are not listed in an active market are classified as receivables.

receivablesAccounts receivable and other receivables are recognised in the balance sheet at nomi-nal value, less provisions for estimated losses. Provisions for losses are made on the basis of individual assessment of the individual receiv-ables, as well as past experience.

machinery and equipmentMachinery and equipment is recognised in the balance sheet and depreciated on a straight-line basis over the estimated useful life less any re-sidual value. Direct maintenance of machinery and equipment is expensed as other operating expenses, while enhancements or improve-ments that increase the capacity are added to the cost price and depreciated in line with the asset. Depreciation periods and profiles and re-sidual values are assessed annually.

intangible assetsIntangible assets consist of identifiable intan-gible assets. Intangible assets are recognised in the balance sheet if it is probable that the expected future financial benefits attributable to the asset will pass to the company and the asset’s historical cost can be measured sepa-rately and in a reliable manner. Intangible as-sets with a limited useful life are recognised at historical cost, less accumulated depreciation and impairment. Depreciation is charged on a straight-line basis over the estimated useful life. The depreciation period and method are reviewed annually. Intangible assets with an indeterminable useful life are not depreciated,

but are tested annually for impairment at the balance sheet date.

goodwillThe difference between the historical cost at the time of acquisition and the fair value of net identifiable assets at the time of acquisi-tion are classified as goodwill. Goodwill is rec-ognised in the balance sheet at historical cost, less any accumulated impairments. Goodwill is not depreciated, but is tested annually for impairment at the balance sheet date, or more frequently if there is an indication of impairment. In cases where negative good-will is identified in connection with business combinations, the purchase price allocation is reassessed before any negative goodwill is recognised in income.

research and developmentExpenses related to research activities are rec-ognised in the income statement when they are incurred. Expenses relating to develop-ment activities are recognised in the balance sheet if these relate to an identifiable product that is technically and commercially feasible and the group has adequate resources to complete the development. Expenses that are recognised in the balance sheet include ma-terials expenses, direct payroll expenses and a percentage of directly attributable overhead expenses. Capitalised development expenses are recognised in the balance sheet at histori-cal cost, less any accumulated depreciation and write-downs. Capitalised development expenses are depreciated over the estimated useful life of the asset. Intangible assets un-der development, however, are not depreci-ated and are tested annually for impairment, or more frequently if there is an indication of impairment.

valuation of investments in subsidiariesSubsidiaries are valued in accordance with the historical cost method in the parent company’s financial statements. Investments are valued at the historical cost of the shares unless a write-down of the shares has been necessary, in which case they are written down to fair value.

provisionsProvisions are made in the financial state-ments where the group has a liability (legal or self-imposed) as a result of a past incident, if it is probable that a financial settlement will



be made as a result of this liability, and if the amount of such a settlement can be measured reliably. If the impact is significant, the provi-sions are calculated by discounting the estimat-ed future cash flows by a discount rate before tax that reflects the market’s pricing of the cur-rent value of money and, where relevant, risks specifically linked to the liability. Provisions for restructuring are included if the group has approved a detailed and formal restructuring plan, and the restructuring has either started or been announced. Provisions for loss-making contracts are included when the group’s esti-mated revenue from a contract is lower than the estimated expenses that will be incurred to fulfil the contractual obligations.

revenue recognitionRevenue is recognised when it is probable that transactions will generate future financial benefits that will pass to the company, and the value of such benefits can be estimated reliably. Sales revenue is recognised net of value added tax and discounts. The group has revenue from three different areas:

productsRevenue from the sale of goods is recognised when delivery has been made and most of the risk and return potential has been transferred.

servicesRevenue from the sale of services is recognised according to the stage of completion. The stage of completion is measured as accrued hours in relation to total estimated hours. Es-timated loss on contracts will be recognised in the income statement in its entirety in the period when it has been identified.

solutionsRevenue from the sale of solutions is a combi-nation of the sale of development services and the subsequent delivery of products. The recog-nition of revenue from solutions is dependent on the pricing model selected. In cases where the customer pays separately for development work and the products, and pricing is estab-lished independently, revenue is recognised in accordance with the principles applicable to services and products described above. If the customer only pays for the finished product, the company, in cases where there is a contrac-tual delivery, recognises revenue and capital-ises development work in line with the degree of completion. This is subsequently expensed in line with the delivery of the products. In-terest income is recognised as it is accrued. Dividends are recognised as income when they have been approved by the general meeting of the distributing company.

inventoriesPurchased inventory is valued at the lower of historical cost (using the FIFO principle) or net realisable value. Write-downs are made for any inventory that is assumed to be obsolete.

currencytransactions in foreign currencyTransactions in foreign currencies are trans-lated at the rate in effect on the date of the

transaction. Monetary items in foreign cur-rencies are translated to Norwegian kroner (NOK) using the rate in effect at the balance sheet date. Exchange rate fluctuations are rec-ognised in the income statement on an ongo-ing basis during the accounting period.

foreign operationsThe assets and liabilities of foreign operations, including goodwill, are translated into Norwe-gian kroner (NOK) using the exchange rate in effect at the balance sheet date. Revenue and expenses relating to foreign operations are translated into Norwegian kroner (NOK) using an average exchange rate for the period. Trans-lation differences resulting from the translation of net investments in foreign operations are specified as translation differences in equity. Translation differences previously recognised in equity are subsequently recognised in the in-come statement in the event of a complete or partial disposal of the subsidiary.

government grantsGovernment grants are recognised in the fi-nancial statements where it is reasonably certain that the company will fulfil the terms of the grants, and that the grants will be re-ceived. Operating subsidies are accounted for systematically over the period that the subsi-dies are received. Grants are recorded in the financial statements as a deduction in the ex-penses they are meant to cover.

pensionsPension expenses and pension liabilities are calculated on a linear earning basis in ac-cordance with assumptions regarding the discount rate; future adjustment of wages, pensions and social security benefits; future return on pension funds; as well as actuarial assumptions regarding mortality, voluntary retirement, etc. The pension funds are val-ued at fair value less the net pension liabili-ties in the balance sheet.

Changes in pension liabilities due to changes in pension plans are allocated over the esti-mated remaining earning period. The same applies to actuarial gains or losses (estimated discrepancies) exceeding 10% of the higher of the pension liabilities or pension funds (corridor). Employer’s social security con-tributions are charged as an expense based on the pension premium paid for insured (Group) pension schemes, and are accrued in accordance with the change in the pension liabilities for uninsured pensions. Defined contribution pension schemes are expensed as they are due.

employee share option schemeEmployee share options are calculated at the fair value at the time they are granted and accrued on a linear basis over the vesting period until the exercise date. The employer’s social security con-tributions linked to vested options are accrued correspondingly over the life-span of the option.

income taxIncome tax expense in the income statement comprises both income tax payable for the pe-

riod and changes in deferred tax. Deferred tax is calculated at the current tax rate on the basis of temporary differences between the financial accounting and tax-related values, and tax loss carryforward at the end of the financial year. Negative and positive temporary differences that reverse or may reverse during the same period are offset and the tax effect of the net amount is calculated. The tax loss carryforward is recognised in the balance sheet as a deferred tax asset if it is considered adequately probable that the losses can be utilised in the future.

cash and cash flow statementThe cash flow statement has been prepared in accordance with the indirect method. Cash and cash equivalents include cash, bank deposits and other short-term liquid investments that can be converted immediately and without any significant exchange rate risk to a known cash amount, and with maturity date less than three months from the purchase date.

segmentsThe group is organised into geographic areas with independent subsidiaries. The geographic areas form the basis for the primary segment reporting. For management purposes financial monitoring is performed by country (and sub-sidiary). Financial information relating to geo-graphic areas and the distribution of revenue by business area is disclosed. contingent liabilities and assetsContingent liabilities are not recognised unless these arise from, and are assessed as a result of business combinations. Material contingent liabilities are disclosed (see Note 12) unless the probability of the liability materialising is low. Contingent assets are not recognised in the an-nual financial statements.

events after the balance sheet dateNew information received after the balance sheet date relating to the company’s financial position at the balance sheet date has been taken into consideration in preparing the annual financial statements. Events occurring after the balance sheet date that do not affect the company’s fi-nancial position at the balance sheet date, but that will affect the company’s financial position in the future are disclosed in if these are material.

use of estimatesThe management has used estimates and as-sumptions that have affected assets, liabilities, income, expenses and information on poten-tial liabilities. This applies in particular to the recognition of revenue related to long-term manufacturing projects, development projects, capitalised development expenses, pension li-abilities and the valuation of goodwill.

The estimates may change as a result of fu-ture events. Estimates and their underlying as-sumptions are assessed continuously. Changes to accounting estimates are included in the financial statements for the period in which the change occurs. If the changes also apply to future periods, the impact is spread over the current and future periods.



NOTES

Note 01 Segments 78

Note 02 Intangible assets, machinery and equip-ment

80

Note 03 Subsidiaries and other investments 82

Note 04 Business combinations 83

Note 05 Inventories 84

Note 06 Trade and other receivables 84

Note 07 Intercompany balances 85

Note 08 Share capital, Shareholders, Earnings per share

86

Note 09 Pensions 88

Note 10 Income tax 89

Note 11 Other current liabilities 90

Note 12 Other provisions for liabilities 90

Note 13 Related party transactions 91

Note 14 Payroll expenses, Employees, Remu-neration and Loans

92

Note 15 Financial items 94

Note 16 Cash and cash equivalents 94

Note 17 Other operating expenses 94

Note 18 Financial risk management 95

Note 19 Government grants 96

Note 20 Events after the balance sheet date 96

Note 21 Proforma (unaudited) 96

NOTES

CHAPTER 7: FINANCIAL STATEMENTS AND NOTESNotes


primary segment 2007


Data Respons’ risk and return profile is largely based on the localisation of its customers, who are in different markets. The group’s operations are there-fore based on the geographic identification of the companies, which also corresponds with management reporting. The company has defined product/ business areas as secondary segment.

Transactions and transfers between the group’s segments are carried out on ordinary commercial terms, corresponding to the terms used for external parties.

NOK 1000 Norway Sweden Denmark Germany Unallocated/eliminations* Group

External operating revenue 287 293 292 476 200 346 38 381 - 818 496

Internal operating revenue 11 479 1 878 - - -13 356 -

Segment revenue 298 771 294 354 200 346 38 381 -13 356 818 496

Operating expenses 262 054 276 621 182 694 35 215 -498 756 087

Depreciation 1 971 1 296 1 573 289 2 386 7 515

Segment profit/loss 34 747 16 437 16 078 2 876 -15 245 54 893

Net financial items 1 264

Profit/loss before tax 56 157

Income tax expense -16 718

Profit/loss for the year 39 439

Capital expenditures this period 2 447 858 5 002 199 896 9 401

Total assets 140 522 112 311 72 726 26 159 337 321 689 039


NOK 1000 Norway Sweden Denmark Germany Unallocated/eliminations* Group


Internal operating revenue 6 587 84 242 1 -6 914 -

Segment revenue 287 863 183 646 153 518 16 933 -6 914 635 047

Operating expenses 248 126 168 730 139 125 20 324 5 706 582 010

Depreciation 1 821 699 1 418 102 1 517 5 556

Segment profit/loss 37 916 14 218 12 976 -3 493 -14 136 47 481

Net financial items -895


Income tax expense -13 647


Capital expenditures this period 2 217 640 1 288 99 1 671 5 915

Total assets 152 204 74 157 43 502 2 976 230 487 503 326


* The item “unallocated/eliminations” includes non-allocated Group expenses (ASA) and eliminations of intercompany revenue and expenses. In addition, the item includes non-allocated assets and liabilities related to the group (ASA), deferred tax assets/liabilities, goodwill, as well as eliminations of intercompany balances.

NOTE 1 SEGMENTS

CHAPTER 7: FINANCIAL STATEMENTS AND NOTESNotes | Note 1



secondary segment

NOK 1000 Norway Sweden Denmark GermanyUnallocated/eliminations*

Group


Internal operating revenue 6 185 1 509 479 40 -8 213 -

Segment revenue 228 122 80 611 81 179 11 344 -8 213 393 043

Operating expenses 199 772 79 686 78 891 14 054 -1 617 370 786

Depreciation 1 457 343 433 71 490 2 794

Segment profit/loss 26 893 582 1 855 -2 781 -7 086 19 463

Net financial items 896


Income tax expense 18 048


Capital expenditures this period 1 212 1 442 474 195 1 314 4 637

Total assets 114 635 34 666 50 336 1 646 165 166 366 449


NOK 1000 Solutions Products Services

2008 2007 2006 2008 2007 2006 2008 2007 2006

Segment revenue 396 819 334 262 241 100 74 173 86 648 83 000 347 504 214 138 68 900

Capital expenditures this period 4 260 2 911 2 013 569 621 702 4 572 2 383 684

Total assets 137 348 126 979 117 049 33 393 26 400 30 801 180 978 119 460 53 432

* The item “unallocated/eliminations” includes non-allocated Group expenses (ASA) and eliminations of intercompany revenue and expenses. In addition, the item includes non-allocated assets and liabilities related to the group (ASA), deferred tax assets/liabilities, goodwill, as well as eliminations of intercompany balances.




NOK 1000 GoodwillOther

intangible assets

Total intangible

assets

Machinery and

equipment

Machinery and equipment

Cost or valuation as of 1 January 2007 125 066 3 711 128 777 28 057 3 734

Additions 102 388 1 768 104 156 5 915 1 671

Disposals - -1 088 -1 088 -2 317 -109

Translation differences -7 313 -97 -7 410 -446 -

Additions from acquired companies - - - 1 129 -

Cost or valuation as of 31 December 2007 220 141 4 294 224 435 32 338 5 296

Accum. depr. and impairm. as of 1 January 2007 - 1 075 1 075 20 206 2 366

Depreciation for the year - 912 912 4 648 710

Impairment for the year - - - - -

Disposals - - - -2 026 -

Translation differences - -44 -44 -281 -

Additions from acquired companies - - - 519 -

Accum. depr. and impairm. as of 31 December 2007 - 1 943 1 943 23 066 3 077

Net book value as of 31 December 2007 220 141 2 351 222 492 9 272 2 219

Cost or valuation as of 1 January 2008 220 141 4 294 224 435 30 752 5 296

Additions 72 482 828 73 310 9 401 896

Disposals - -287 -287 -410 -

Translation differences 33 610 435 34 045 1 980 -


Cost or valuation as of 31 December 2008 326 233 5 270 331 503 48 768 6 191

Accum. depr. and impairm. as of 1 January 2008 - 1 943 1 943 21 554 3 077

Depreciation for the year - 1 403 1 403 6 112 1 089

Impairment for the year - - - - -

Disposals - - - -334 -

Translation differences - 230 230 1 706 -


Accum. depr. and impairm. as of 31 December 2008 - 3 576 3 577 33 730 4 165

Net book value as of 31 December 2008 326 233 1 694 327 926 15 038 2 026

Both the parent company and Group use straight-line depreciation for all machinery and equipment. The estimated economic life of machinery and equipment is 3 to 5 years. Intangible assets are depreciated over the life of the asset, which is estimated to be from 2.5 to 10 years.

Expensed lease rentals in the group (NOK 1000) 2008 2007 2006

Rental of premises in Norway 7 035 7 078 5 371

Rental of premises outside Norway 7 256 4 077 1 968

Operational leasing of vehicles 2 928 1 052 - The group does not have any purchase options on the properties. In Norway the lease for the head office at Høvik has in 2009 been expanded to 30.06.2015 on existing terms, while the terms of lease for the foreign units vary from a lease requiring 9 months’ notice to a lease with an expiry date of 1 October 2014. The leases will continue on unchanged terms. Leasing contracts on vehicles have a duration of 36 months.

NOTE 2 INTANGIBLE ASSETS, MACHINERY AND EQUIPMENT



intangible assetsOther intangible assets consist of capitalised development expenses, as well as intangible assets recognised at fair value upon the acquisition of companies. In 2008, no development project expenses were capitalised, while NOK 395,000 was charged as expenses.

changes in goodwill arose in 2008 due to the following acquisitions:

Company Date Goodwill (NOK 1000) Shareholding

Lundinova AB (SE) 16.01.2008 20 869 100%

Ipcas GmbH (DE) 11.09.2008 28 324 100%

As a result of changes in estimates for earn-out payments in connection with acquisition prior to 2008, the related goodwill has been adjusted upwards by NOK 23,290,000 in 2008. All goodwill is recorded in local currency, and as a result, changes in currency exchange rates will affect the value of goodwill. Compared to the currency rate at the acquisition date, goodwill was adjusted upwards by NOK 26,708,000 at the end of 2008, compared to a downward adjustment of NOK 6,907,000 at the end of 2007.

impairment test of goodwillGoodwill recognised through the acquisition of companies and units is allocated to the individual unit if the cash flows are still identifiable. In cases where units have been merged and operations are integrated, it is difficult to isolate the cash flows. In these cases the combined goodwill will be assessed for the merged unit.

Goodwill is allocated as follows: (NOK 1000) 2008 2007 2006

Data Respons Norge AS 49 455 48 078 42 720

Digitas AS 22 163 14 420 -

Data Respons AB (SE) 24 139 22 518 24 247

Sylog Sverige AB (SE) 58 524 40 305 -

Data Respons Syrén AB (SE) 10 555 9 192 -

Lundinova AB (SE) 22 236 - -

Data Respons A/S (DK) 104 549 85 628 58 099

Ipcas Gmbh (DE) 34 612 - -

Total 326 233 220 141 125 066

The recoverable amount for the cash flow-generating units is calculated based on the value the asset will generate for the business operations. Cash forecasts based on budgets approved by the management for a five-year period are used. Cash flows beyond this period are extrapolated using esti-mated growth rates for the individual units.

The impairment test for 2008 showed no need for impairment of goodwill.

The most import assumptions for calculation of the recoverable amount are as follows: revenue growth:Historically the group has achieved an organic (proforma) growth of appr. 20%, and management believe that the long-term outlook for the embed-ded solutions market is prosperous. However, in a recession it is reasonable to expect a lower growth rate, and to reflect the uncertain conditions the yearly growth rate has been set at 5-10 % in the five-year period. A reduction of the growth rate of 5 percentage points (i.e. 0-5% growth) would result in an impairment need of NOK 10.7 million.

extrapolated growth rate:The growth rate beyond five years has been set at 0% for all units. A residual growth rate of 3% would remove any impairment need calculated by the sensitivity analysis related to both revenue growth and discount rate.

ebit margin:The group has chosen a conservative approach and has for the main part assumed lower margin in the short-term than achieved in 2008. It is assumed that over the five-year period, the units will achieve margins similar to 2008.

discount rate:A calculated WACC of 12% has been used as the discount rate for all units. An increase of 1 percentage point to 13% would result in an impairment need of NOK 5.2 million.

The company believes that the estimates for future cash flows are prudent, and that it is unlikely that assumptions will change to such an extent that these could affect the outcome of the impairment test.



DATA RESPONS ASA

GROUP

Company Currency Issued capital Shareholding Book value (NOK 1000)

Data Respons Norge AS NOK 1 387 100% 139 880

Certified Computer Technology AS NOK 1 100 100% -

Data Respons AB (SE) SEK 507 100% 13 144

Data Respons OY (FI) EUR 150 100% 3 494

Data Respons A/S (DK) DKK 2 277 100% 101 009

Data Respons GmbH (DE) EUR 100 100% 11 293

Data Respons Components AB (SE) SEK 400 100% 25 024

Centrex AS NOK 100 100% -

Data Respons Syrén AB (SE) SEK 105 100% 15 849

Digitas AS NOK 313 100% 24 347

Sylog Sverige AB (SE) SEK 100 100% 60 781

Lundinova AB (SE) SEK 100 100% 23 337

Ipcas GmbH (DE) EUR 26 100% 46 570

Total 464 727

Company Date of acquisition Registered office Ownership and voting

Data Respons Norge AS 27.11.2001 Bærum 100%

Certified Computer Technology AS 17.02.2000 Bærum 100%

Data Respons AB (SE) 27.11.2001 Upplands Väsby (SE) 100%

Data Respons A/S (DK) 27.11.2001 Herlev (DK) 100%

Data Respons OY (FI) 01.11.2003 Espo (FI) 100%

Data Respons GmbH (DE) 17.02.2005 Karlsruhe (DE) 100%

Data Respons Components AB (SE) 01.04.2006 Upplands Väsby (SE) 100%

Centrex AS 01.04.2006 Bærum 100%

Data Respons Syrén AB (SE) 08.01.2007 Gøteborg (SE) 100%

Digitas AS 04.07.2007 Asker 100%

Sylog Sverige AB (SE) 06.07.2007 Kista (SE) 100%

Professional Finder AB (SE) 06.07.2007 Kista (SE) 100%

Lundinova AB (SE) 16.01.2008 Lund (SE) 100%

Ipcas GmbH (DE) 11.09.2008 Erlangen (DE) 100%

The investments are carried using the historical cost method in the parent company’s financial statements. Centrex AS merged with Data Respons Norge AS with effect from 1 January 2008, with Data Respons Norge AS as the acquiring company. After the conclusion of this merger, the company Memstore AS changed its name to Centrex AS. Embedit A/S and Memstore Aps merged with Data Respons A/S with effect from 1 January 2008, with Data Respons A/S as the acquiring company.

NOTE 3 SUBSIDIARIES AND OTHER INVESTMENTS



BUSINESS ACQUISITIONS IN 2008

100 % of the shares in Lundinova AB (Sweden) was acquired on 16 January 2008. Lundinova AB has contributed with a profit after tax of NOK 2,150,250 from the date of acquisition.

100 % of the shares in Ipcas GmbH (Germany) was acquired on 11 September 2008. Ipcas GmbH has contributed with a profit after tax of NOK 3,061,332 from the date of acquisition.

Both companies acquired in 2008 are consultancy firms within the embedded solutions market. Goodwill consists of the value of the competencies of the employees, their relationship with their customers, and synergies with existing operations. The following table shows the fair value of identifiable assets and liabilities and the corresponding book values at the time of acquisition.

Lundinova AB Ipcas GmbH

Book valueSEK 1 000

Fair valueSEK 1 000

Book valueEUR 1 000

Fair valueEUR 1 000

Cash and cash equivalents 1 898 1 898 971 971

Trade and other receivables 5 177 5 177 820 820

Inventories 137 137 80 80

Machinery and equipment 1 134 1 134 135 135

Capitalised development projects - - - -

Contracts - 500 - 50

Trade payables -1 182 -1 182 -34 -34

Non interest-bearing liabilities -5 508 -5 508 -450 -450

Minority interests - - - -

Net identifiable assets 1 656 2 156 1 522 1 572

Share (%) acquired 100 % 100 %

Net assets acquired 2 156 1 572

Cash payment 15 000 1 900

Contingent liability* 11 500 3 100

Directly attributable acquisition expenses 248 81

Purchase price 26 748 5 081

Goodwill at time of acquisition 24 592 3 509

Exchange rate at time of acquisition 0,85 8,07

Goodwill NOK 1000 20 869 28 324

* For some acquisitions, earn-out agreements have been entered into whereby the purchase price is linked to the profit performance of the acquired company for a specific period of time after the acquisition. In these cases the assumed liability is estimated and added to the purchase price.

The acquisition analysis of Lundinova AB and Ipcas GmbH is not final as of 31 December 2008, due to potential changes in earn-out estimates.

See note 21 for proforma figures

NOTE 4 BUSINESS COMBINATIONS



DATA RESPONS ASAGROUP

NOK 1000 2008 2007 2006 2008 2007 2006

Historical cost 74 745 62 161 44 164 - - -

Written down to fair value 74 301 62 161 44 016 - - -

General provisions for obsolescence -2 588 -2 061 -330 - - -

Book value 71 713 60 100 43 686 - - -

Value of inventory pledged as collateral 17 000 17 000 11 500 - - -

GOODS PURCHASED FOR RESALE


NOK 1000 2008 2007 2006 2008 2007 2006

Trade receivables 167 946 115 128 102 745 646 406 1 903

Provisions for impairment of receivables -515 -420 -776 - - -

Trade receivables, net 167 432 114 708 101 969 646 406 1 903

Accrued revenue 11 688 1 469 6 323 - - -

Prepayments 7 784 4 710 2 613 385 307 43

Other current receivables 5 607 7 806 6 783 4 401 6 413 15 300

Total other receivables 25 079 13 986 15 719 4 786 6 720 15 343

Total receivables 192 511 128 693 117 688 5 433 7 126 17 246

Provisions as of 1 January 420 776 736 - - -

Realised losses -558 -278 - - - -

Provisions for the period 614 -347 40 - - -

Additions from acquired companies 39 269 - - - -

Provisions as of 31 December 515 420 776 - - -

Losses on trade receivables are classified as other operating expenses in the income statement.Maximum credit risk is represented by the line Total receivables.

TRADE RECEIVABLES

Ageing analysis of trade receivables (NOK 1000) Carrying amount Not due Number of days past due date

0-30 31-60 61+

Trade receivables as of 31 Dec. 2008 167 946 109 425 52 656 4 405 1 460

Trade receivables as of 31 Dec. 2007 115 128 78 515 33 502 1 597 1 513

NOTE 5 INVENTORIES

NOTE 6 TRADE AND OTHER RECEIVABLES



DATA RESPONS ASA

NOK 1000 Current receivables Current liabilities

2008 2007 2006 2008 2007 2006

Data Respons Norge AS* 560 1 294 11 497 3 293 3 544 25 258

Digitas AS 4 000 12 - - - -

Certified Computer Technology AS - -47 -20 - - -

Data Respons AB - 130 2 557 169 62 87

Data Respons Components AB - - 18 17 - -

Data Respons Oy - 110 169 - - 43

Data Respons A/S** 48 5 337 20 - 80 77

Data Respons GmbH 39 40 2 673 29 - -

Total 4 646 6 875 16 914 3 509 3 686 25 465

* Centrex AS merged with Data Respons Norge AS with effect from 1 January 2008. The comparative figures have been adjusted accordingly. ** Embedit A/S merged with Data Respons A/S with effect from 1 January 2008. The comparative figures have been adjusted accordingly.

NOTE 7 INTERCOMPANY BALANCES



The registered share capital of Data Respons ASA consisted of 42,361,731 shares with a par value of NOK 0.50 as of 31 December 2008. Each share car-ries one vote. A total of 15.4 million shares were traded on the Oslo Stock Exchange in 2008, a decrease from 39.2 million shares in 2007. At the end of the year Data Respons ASA had 1,178 Norwegian shareholders and 44 foreign shareholders. The foreign shareholders owned 10.6 % of the shares. The company owned 157,000 treasury shares at the end of 2008. During 2008 a total of 445,000 treasury shares were bought, and 351,000 were used as payment for acquisitions (earn-out obligations).

LIST OF 20 LARGEST SHAREHOLDERS AS OF 31 DECEMBER 2008

Shareholder Ordinary shares Proportion of ownership

MP PENSJON 3 800 000 9.0%

FERD AS INVEST 3 696 500 8.7%

DANSKE BANK A/S - CLIENT ACCOUNTS 3 608 314 8.5%

DYVI CAPITAL AS 2 120 000 5.0%

VARNER INVEST AS 1 500 000 3.5%

VERDIPAPIRFONDET DELPHI NORGE 1 416 500 3.3%

BRAGANZA AS 1 400 000 3.3%

HAAKON SÆTER 1 252 211 3.0%

RO INVEST AS 1 148 000 2.7%

ALFRED BERG AKTIV 1 030 400 2.4%

ALFRED BERG NORGE + 833 100 2.0%

LOLIGO AS 800 000 1.9%

ALFRED BERG GAMBAK 773 671 1.8%

BERNT AS 756 500 1.8%

SILVERCOIN INDUSTRIES AS 747 700 1.8%

FOUGNER INVEST AS 719 000 1.7%

VENTOR AS 695 500 1.6%

ALFRED BERG NORGE 615 511 1.5%

PETER SÆTER 541 050 1.3%

NHO ARBEIDSMILJØFIND 514 645 1.2%

Total 27 968 602 66.0%

Others 14 393 129 34.0%

Total number of shares 42 361 731 100%

SHARE ISSUES IN 2008

Date Type Subscription price Number of shares After new issue

28.04.2008 Private placement - Earn-out payment Embedit A/S 12.61 3 599 314 40 873 060

24.10.2008 Private placement - Earn-out payment Sylog Sverige AB 11.85 1 488 671 42 361 731

POWER OF ATTORNEY TO ISSUE SHARES AND PURCHASE TREASURY SHARES

Passed Type Year issued

Maximum share limit

Shares issued/purchased 2008

Remaining number of shares Duration

29.04.2008 Capital increase 2008 4 000 000 1 488 671 2 511 329 Until 29.04.2009

29.04.2008 Purchase of treasury shares 2008 4 000 000 445 000 3 555 000 Until 29.04.2009

The Board has been granted power of attorney to increase the company’s share capital by a maximum of NOK 2,000,000 through the issue of a maximum of 4,000,000 new shares, each with a par value of NOK 0.50. The authorisation is valid until the annual general assembly in 2009 and can be used by the Board in connection with acquisitions of new companies as part of the company’s strategy, option schemes for employees, or cash issues. The company’s sharehold-ers have waived their pre-emptive subscription rights in accordance with Section 10-5, cf. section 10-4, of the Norwegian Public Limited Companies Act.

NOTE 8 SHARE CAPITAL, SHAREHOLDERS, EARNINGS PER SHARE



The Board has been granted power of attorney to purchase up to 4,000,000 shares with an equivalent nominal value of NOK 2,000,000, in accordance with the Norwegian Public Limited Companies Act §9-4. The amount which may be paid per share is to be minimum NOK 1.00 and maximum NOK 50.00. The Board is free to choose the method by which the purchase or sale is executed. The authorisation is valid until the annual general meeting in 2009. The purpose of the authorisation is to give the company the facility to implement the buy-back of shares with subsequent cancellation, in order to optimise the company’s capital structure. Furthermore, the company wishes to be able to use such authorisation to purchase and sell treasury shares in connection with the complete or partial settlement for acquired companies, or to fulfil the existing share option scheme for employees.

EARNINGS PER SHARE

The earnings per share ratio is calculated by dividing the Profit/loss for the year attributable to the company’s shareholders by a time-weighted aver-age of outstanding ordinary shares throughout the year, less the company’s treasury shares.

The diluted earnings per share ratio is based on the same calculation as above, however, it also takes into account potential shares that have been outstanding during the period and will have a diluting effect, i.e. reduce the earnings per share for the ordinary shares. The company has only one category of potential shares that can result in dilution: share options.

2008 2007 2006

Profit/loss for the year attributable to the company’s shareholders (NOK 1000) 39 439 33 033 38 215

Weighted average number of outstanding shares (1000) 39 932 37 087 35 729

Effect of dilution

-Employee share option scheme 1 470 1 470 1 320

Weighted average number of outstanding shares, diluted (1000) 41 402 38 557 37 049

Earnings per share, basic 0,99 0,89 1,07

Earnings per share, diluted 0,95 0,86 1,03

CALCULATION OF TIME-WEIGHTED SHARES

Date Number of shares* Number of days Weighted number of shares

01.01.2008 37 210 746 116 11 825 881

26.04.2008 40 873 060 188 21 052 425

31.10.2008 42 204 731 61 7 053 393

39 931 700

*Number of shares has been adjusted by the treasury shares held by the company.

No distribution of dividends has been proposed for the 2008 financial year.




The parent company is required to operate a company pension scheme pursuant to the Mandatory Occupational Pension Act, and operates a pension scheme that meets this requirement. This scheme covered a total of 12 people in 2008. As of 1 December 2007, the parent company and Data Respons Norge AS changed from a defined benefit pension scheme to a defined contribution pension scheme, but kept the disability part as a defined benefit scheme. The group as a whole has a defined benefit pension scheme that covers 142 people in total. This relates mainly to the disability part. The liabilities are covered through an insurance company. The calculations are performed by an actuary and are based on the IFRS standard. The annual pension expenses are included under payroll expenses, and they consist of changes in the liabilities and pension funds, as well as contributions to the collective pension scheme. In addition to the aforementioned schemes in Norway, the group’s subsidiaries have, with one minor exception, defined contribution pension schemes, and the expenses associated with these schemes are included under payroll expenses in the income statement. The expenses broken down into defined contribution and defined benefit schemes are specified in Note 14.

NOK 1000 2008 2007 2006 2008 2007 2006

the pension expense is calculated as follows:

Net present value of current year’s accrued pension benefits 1 564 3 546 3 394 255 899 937

Interest cost on accrued pension liabilities 233 760 669 37 213 179

Expected return on pension funds -160 -466 -448 -37 -107 -80

Amortisation of actuarial gains/losses - - 126 - - 126

One-time effect of transition to defined contribution scheme - -3 657 - - -313 -

Pension expenses for the year 1 636 183 3 742 255 692 1 036

pension liabilities and pension funds:

Estimated uninsured pension liabilities 10 322 5 305 20 525 2 466 863 5 399

Estimated value of pension funds 5 832 2 414 10 494 1 723 601 1 921

Net estimated pension liabilities 4 490 2 891 10 032 743 262 3 478

Unrecognised actuarial gains/losses -685 - -3 464 -461 - -3 270

Net pension liabilities in the balance sheet 3 805 2 891 6 568 282 262 208

changes in the liabilities:

Net pension liabilities as of 1 January 2 891 6 568 4 096 262 208 -531

Recognised pension expenses 1 636 183 3 742 255 692 1 036

Premium payments -1 522 -3 860 -1 270 -236 -638 -297

Additions from acquired companies 799 - - - - -

Net pension liabilities in the balance sheet 3 805 2 891 6 568 282 262 208

The following assumptions have been used for the calculation of the pension expenses and net pension liabilities:

2008 2007 2006

Discount rate 4.30% 4.75% 4.5%

Return on pension funds 6.30% 5.75% 5.5%

Future salary increases 4.50% 4.50% 4.0%

Annual basic amount adjustment 4.25% 4.25% 4.0%

Future pension increases 3.00% 2.00% 2.0%

Percentage distribution of pension funds by investment category:

2008 2007 2006

Equities 6.0% 29.6% 29.7%

Bonds 32.4% 16.7% 20.6%

Money market 11.5% 7.9% 4.5%

Long-term bonds 28.7% 27.7% 30.0%

Real estate 17.1% 15.2% 12.6%

Other 4.3% 2.9% 2.6%

The actuarial assumptions are based on normal assumptions used by the insurance industry with regard to demographic factors. See table K2005.

NOTE 9 PENSIONS






Summary of temporary differences (NOK 1000) 2008 2007 2006 2008 2007 2006

Receivables 95 -360 -599 - - -

Other current assets -2 272 -1 917 -199 - - -

Non-current assets -4 400 -4 618 -5 531 -1 414 -1 343 -1 801

Pensions -3 032 -2 891 -6 568 -282 -262 -208

Work in progress -183 - 346 - - -

Provisions for contingent liabilities - -349 -200 - - -

Financial assets - - - - - -

Group contributions* -37 544 -36 310 -19 780

Total -9 792 -10 135 -12 751 -39 240 -37 916 -21 789

Tax loss carryforward -70 755 -101 061 -136 155 -84 893 -109 233 -133 214

Total positive/negative temporary differences -80 547 -111 195 -148 906 -124 133 -147 149 -155 003

Deferred tax assets at current tax rate 26 486 33 535 41 693 34 757 41 202 43 401

Of which, deferred tax assets not recognised - 147 1 616 - - -

Addition of deferred tax assets from acquisitions - - - - - -

Deferred tax assets in the balance sheet 26 486 33 388 40 077 34 757 41 202 43 401

Deferred tax liability at current tax rate 3 959 2 435 - - - -

Deferred tax liability in the balance sheet 3 959 2 435 - - - -

* In accordance with IFRSs, Group contributions are entered as income in the parent company the year after the allocation for tax purposes in the subsidiaries.

The deferred tax assets in the balance sheet relate primarily to the tax loss carryforward in the Norwegian companies. These companies are showing a steady growth in profits, and based on updated forecasts prepared for the coming years, it is expected that it will be possible to utilise the tax loss carryforward. Unrecognised deferred tax assets relate to the tax loss carryforward in Sweden. The tax loss can be carried forward indefinitely.

Income tax expense for the year consists of 2008 2007 2006 2008 2007 2006

Income tax payable in Norway - - - - - -

Income tax payable outside Norway 8 195 5 771 586 - - -

Total income tax payable 8 195 5 771 586 - - -

Change in deferred tax in Norway 6 823 7 377 -18 591 6 444 2 199 -21 287

Change in deferred tax outside Norway 1 700 499 -43 - - -

Change in deferred tax from acquisitions -96 1 362 671 - - -

Total change in deferred tax 8 427 9 239 -17 963 6 444 2 199 -21 287

Unrecognised change in deferred tax assets - - - - - -

Total income tax expense/revenue 16 718 13 647 -18 048 6 444 2 199 -21 287

Calculation of tax base for the year (NOK 1000) 2008 2007 2006 2008 2007 2006

Profit/loss before tax 56 157 46 586 20 359 40 505 21 102 13 161

28% tax 15 724 13 044 5 701 11 341 5 908 3 685

tax effect of:Permanent differences 1 706 1 132 -726 -4 898 -3 709 -505

Change in not-recognised deferred tax assets -85 -142 -23 023 - - -24 467

Difference in tax rates -627 -387 -

Income tax expense (revenue) for the year 16 718 13 647 -18 048 6 444 2 199 -21 287

Effective tax rate 30% 29% -89% 16% 10% -162%

NOTE 10 INCOME TAX




NOK 1000 2008 2007 2006 2008 2007 2006

Prepayments from customers 42 3 244 5 933 - 1 -

Accrued wages/bonuses/holiday pay 36 095 28 230 16 152 4 471 3 769 2 094

Accrued expenses 31 496 23 581 8 928 4 523 5 011 26 311

Other current liabilities* 58 963 59 434 - 58 963 59 434 -

Total other current liabilities 126 597 114 489 31 013 67 957 68 215 28 405

*Other current liabilities consists of additional payments according to earn-out agreements that are due within a year. See Note 12 for specification


NOK 1000 Warranty provisions

Other provisions Total Warranty

provisionsOther

provisions Total

Provisions as of 1 January 2008 210 107 040 107 250 - 107 040 107 040

Recognised in the income statement during the year:

– Provisions for the year - - - - - -

– Reversal of unutilised provisions -210 - -210 - - -

Recognised in the balance sheet during the year - 21 785 21 785 - 21 785 21 785

Utilised during the year - -80 364 -80 364 - -80 364 -80 364

Additions from acquired companies - 34 782 34 782 - 34 782 34 782

Translation differences - 7 802 7 802 - 7 802 7 802

Provisions as of 31 December 2008 - 91 045 91 045 - 91 045 91 045

Classified as current liabilities in the balance sheet - 58 963 58 963 - 58 963 58 963

Classified as non-current liabilities in the balance sheet - 32 082 32 082 - 32 082 32 082

NOTE 11 OTHER CURRENT LIABILITIES

NOTE 12 OTHER PROVISIONS FOR LIABILITIES

CHAPTER 7: FINANCIAL STATEMENTS AND NOTESNotes | Note 11-12



NOTE 13 RELATED PARTIES

There have been no transactions between the company and related parties except transactions between Group companies. All transactions between group companies follow the arms-length principle.

For the parent company, transactions with group companies consist mainly of fees for Group management services.

See Note 14 for information on the remuneration of Group management and Board of Directors, as well as Note 7 for balances between Data Respons ASA and other Group companies.

OTHER PROVISIONSIn connection with acquisition of companies, an earn-out agreement is often entered into, where the previous owners receive additional payments based on the performance of the acquired company in a specified time period after the acquisition.

The additional payments will be made in cash or in shares in Data Respons ASA based on market rate. The following table specifies estimated earn-out payments divided into primary segments as of 31 December 2008. Payments due in 2009 are classified as current liability and the outcome will depend on exchange rate development up until payment date.

Payments due after 2009 are classified as non-current liability, and the outcome will depend on both performance development in the acquired companies and the exchange rate development.

ESTIMATED EARN-OUT PAYMENTS

Country (NOK 1000) 2009 2010+ Total

Norway 10 642 7 000 17 642

Sweden 25 334 11 896 37 230

Denmark 5 592 - 5 592

Germany 17 395 13 187 30 582

Provisions as of 31 December 2008 58 963 32 083 91 045

NOK 1000 2008 2007 2006 2008 2007 2006

mortgages and guaranteesDebt secured by mortgage - - - - - -

Guarantees 2 579 1 262 882 - - -

book value of secured assets used as collateral

Trade receivables 37 723 38 607 55 192 - - -

Inventories 37 566 42 132 28 996 - - -

Total 75 289 80 739 84 188 - - -

A guarantee of NOK 2,579,000 has been provided in connection with lease agreements.

Guarantees and overdraft facilities are secured by a lien on inventory and trade receivables. A total lien of NOK 17 million has been placed on invento-ries, and a total lien of NOK 45 million has been placed on trade receivables. Sweden has a floating charge of SEK 1.73 million against machinery and equipment.




Payroll expenses (NOK 1000) 2008 2007 2006 2008 2007 2006

Wages and salaries 254 387 175 300 94 534 17 098 13 315 11 344

Social security tax 41 717 29 105 14 996 1 922 1 683 1 582

Pension expenses, defined benefit scheme 1 636 183 3 742 255 692 1 036

Pension expenses, defined contribution scheme 16 438 8 312 3 054 730 49 -

Other benefits 24 786 16 772 7 612 3 078 2 283 1 474

Total 338 965 229 672 123 938 23 083 18 021 15 436

The average number of employees during the financial year was 14 in the parent company. The average number of employees in the group was 463, and there were 511 employees at the end of the year. There were 74 female employees in the group, 10 of whom were middle managers.

board’s guidelines and principles for the stipulation of salaries and other remuneration to key employees In accordance with the provisions of the Public Limited Companies Act, the Board of Directors has prepared the following declaration of guidelines and main principles for the stipulation of salaries and other remuneration for key employees. The object of designing a compensation package for the CEO and other key employees is to provide a competitive package that contains incentives to strive for profitable growth and increase the creation of value for the shareholders within the scope of the company’s adopted values and strategies. The individual manager shall be paid a fixed basic salary in line with market salaries for corresponding positions in comparable companies in Norway. A variable salary shall be paid in addition to the fixed salary. The variable salary is dependent on achieving profitability improvement and growth targets for the group. For the CEO the variable salary will be a maximum of nine monthly salaries, while it will be a maximum of 2-5 monthly salaries for other key employees.

The company has a share option scheme for group management and managers in the group’s subsidiaries. The share option scheme has been established to give the com-pany’s management incentives to strive to create value for the shareholders. This scheme is described in greater detail below. The group management is covered by the company’s pension scheme on the same terms as other employees. This pension scheme is described in Note 9. The CEO is entitled to 12 months’ salary after termination or amendment of his position/employment. Other members of group management have a customary mutual notice period of six months and no special arrangements.

shares, options and remuneration to the ceo, key employees, board of directors and nomination committee

Salaries and fees Bonus Pensions

Other benefits in kind

Total remunera-

tionNo. of shares

No. of options

Kenneth Ragnvaldsen, CEO 1 924 850 850 000 59 524 7 492 2 841 866 245 000 300 000

Rune Wahl, CFO 1 502 403 414 584 76 102 7 492 2 000 581 60 000 200 000

Åge Gjellesvik, Vice president sales 1 186 878 188 600 94 526 7 492 1 477 496 33 043 80 000

Hans Christian Lønstad, CTO 1 240 263 336 792 92 227 7 492 1 676 774 61 596 80 000

Georg Huus, Marketing director 995 524 141 667 67 250 7 492 1 211 933 3 000 80 000

Sven Falcke, Vice president operations 266 666 - 10 248 1 436 278 350 1 000 -

Svein R. Goli, Chairman of the Board 187 000 187 000 150 000 -

Anne-Cecilie Fagerlie, Board member 136 000 136 000 - -

Lars-Olof Gustavsson, Board member 128 000 128 000 20 000 -

Ingvild Myhre, Board member 104 000 104 000 10 000 -

Tormod Stene-Johansen, former board member 96 000 96 000 60 000 -

Steinar Hoen, Board member - - 120 000 -

Mikkel D. Helweg, Board member, employee rep. 22 000 22 000 1 601 -

Anne Helene Tryti, Board member, employee rep. 12 900 12 900 6 653 -

Øyvind Lien, former employee representative 9 100 9 100

Nils-Henrik Petterson, Nomination committee member 15 000 15 000 - -

Albert Collet, Nomination committee member - - - -

Haakon Sæter, Nomination committee member 10 000 10 000 1 999 911 -

Leif Eriksrød, Nomination committee member - - - -

John H. Henriksen, former Nomination committee member 10 000 10 000 - -

NOTE 14 PAYROLL EXPENSES, EMPLOYEES, REMUNERATION AND LOANS



2007 20062008


As part of the remuneration of the CEO and key employees, a total of 740,000 options have been granted as specified in the table above. No options were exercised in 2008, and as of 31 December 2008 no options were in the money. In accordance with IFRS 2, the fair value of options granted to employees is accrued over the vesting period and in 2008 a total of NOK 671,725 was expensed related to options granted to the CEO and key employees, NOK 0.90 per option.

On 29 April 2008, the General Meeting decided that the scope for the Board of Directors’ fee for the 2008 working period should be NOK 768,600, based on the current composition of the Board of Directors. No loans or guarantees have been provided to the Board of Directors, key employees, other employees or their related parties. There are no shareholder agreements.

employee share option schemeOn 31 March 2006 the Board of Directors of Data Respons ASA approved a share option programme for the management and key employees with a total scope of 1,500,000 options. Half of the options have a term of two years, and the other half have a term of three years. The vesting of options is dependent on the employees remaining with the company until the options can be exercised. The grant date was 27 April 2006, and the exercise price was set at the quoted price plus 20%. Options were granted under the same condition to new employees in 2007.

movements in the number of outstanding share options and the associated weighted average exercise prices are as follows:

AverageExercise price Options



NOK 1 000 NOK 1 000 NOK 1 000

As of 1 January 16,80 1 470 16,80 1 320 - -

Granted - - 16,80 150 16,80 1 420

Forfeited 16,80 -240 - - 16,80 -100

Exercised - - - - - -

Expired - - - - - -

As of 31 December 16,80 1 230 16,80 1 470 16,80 1 320

The fair value of the options granted to employees has been calculated using the Black & Scholes’ valuation model for options. The most important input data included the share price of NOK 14.00 when granted, exercise price of NOK 16.80, estimated volatility of 39.50% based on the share prices during the period from May 2003 to April 2006, risk-free interest rate of 3.67%, and a term of two and three years, respectively. The cost will be accrued over the vesting period with deductions for the estimated number of forfeited options. In 2008, a total of NOK 1,116,516 were expensed for the option programme.

remuneration to the auditorNOK 1000 2008 2007 2006 2008 2007 2006

Auditing services 1 241 1 070 938 281 268 255

Other certification services 14 13 41 6 2 26

Tax advice 121 159 170 39 18 55

Other non-auditing services 192 85 234 68 57 234

Other non-auditing services relates mainly to IFRS and due diligence.




NOK 1000 2008 2007 2006 2008 2007 2006

financial income

Interest received from Group companies - - - - 179 1 282

Interest income 3 559 2 037 1 636 202 99 595

Other financial income 4 234 746 748 562 11 70

Total other financial income 7 793 2 783 2 384 765 290 1 947

financial expenses

Interest expenses 2 853 1 503 116 1 246 508 46

Other financial expenses 3 677 2 174 1 372 142 261 116

Total other financial expenses 6 530 3 678 1 488 1 387 770 162


NOK 1000 2008 2007 2006 2008 2007 2006

Cash and bank deposits 55 331 49 347 29 411 -13 945 -19 888 10 069

– of which restricted -5 045 -4 411 -3 172 -735 -631 -573

Unrestricted cash and cash equivalents 50 286 44 936 26 239 -14 680 -20 519 9 496

Unutilised short-term credit facilities 25 000 18 000 5 049 25 000 18 000 5 049

Unutilised long-term credit facilities 55 000 80 000 - 55 000 80 000 -

Cash reserve 130 286 142 936 31 288 65 320 77 481 14 545

The Data Respons Group has established a corporate account system in which Data Respons ASA is the corporate account holder, while the other Group companies are subaccount holders. The bank can set off any withdrawals or deposits against each other, so that the net position represents the balance between the bank and Data Respons ASA.


NOK 1000 2008 2007 2006 2008 2007 2006

Expenses related to premises and equipment 18 312 13 173 11 446 1 030 578 1 737

External services 7 559 7 214 5 826 2 689 2 094 1 700

Marketing expenses 8 881 8 171 5 293 978 523 998

Other operating expenses 31 497 22 897 13 331 4 307 3 765 2 540

Total 66 249 51 455 35 896 9 004 6 960 6 975

NOTE 15 FINANCIAL ITEMS

NOTE 16 CASH AND CASH EQUIVALENTS

NOTE 17 OTHER OPERATING EXPENSES

CHAPTER 7: FINANCIAL STATEMENTS AND NOTESNotes | Note15-17


The group’s activities expose it to a variety of financial risks, including price risk, interest rate risk, currency risk, credit risk and liquidity risk. Overall these risks are regarded as low.

Risk management is performed by the group’s central finance department under the guidelines set out by the Board of Directors. The main prin-ciple is to minimise exposure to financial risk, and the group holds no financial assets or liabilities for speculative purposes.

market price risk As of 31 December 2008, all financial assets and liabilities are classified as loans or receivables under IAS 39, and their value is not subject to any market price risk.

credit riskThe group’s exposure to non-payment of contractual obligations is reflected by outstanding trade receivables and accrued revenue specified in note 6. Identified risks for individual customers are reflected in bad debt allowances. The group’s customers largely consist of large and medium-sized companies with good solvency, and the customer base is diversified into different vertical market segment. Neither of the group’s primary segments had any significant concentration of credit risk. Credit checks are performed on new customers. Historically bad debt losses have been low, and although the current economic conditions will increase the risk of non-payment, the group does not expect to see any major increase in losses.

liquidity riskThe primary objective of the group’s capital management is to maintain a healthy capital ratio to support the group’s continued expansion. The group will primarily finance the expansion through cash generated by the operational activities and equity. To cover temporary funding needs for acquisitions, the Group has secured a credit facility of NOK 80 million. The group has 30-60 days in credit terms from the main suppliers. Surplus cash holdings will be kept in interest-bearing bank accounts with reputable banks. As of 31 December 2008 the group has NOK 55 million in cash and no interest-bearing debt and regard the liquidity situation as healthy. See note 16 for specifications regarding cash and credit facilities.

currency riskThe group has operations in 5 different countries with 4 different currencies and is as such exposed to currency fluctuations when translating into the group currency NOK. Exposure from individual subsidiaries varies according to the nature of their business. Consultancy operations abroad generate a currency exposure for the group on the net profit only, as both revenue and expenses are in the same local currency. Hedging has been deemed unnecessary.

For product sales the exposure is higher, as parts are purchased from different suppliers across the globe and predominately invoiced in USD or EUR. With most of our major customers, the group has entered into an agreement whereby material fluctuations in price of components due to currency, lead to a corresponding adjustment of the selling price. The group then achieves a natural hedge on a significant part of its components/solutions sales, and further hedging is deemed unnecessary.

interest rate riskThe group primarily finances its operations and acquisitions through equity and cash generated from operational activities, and has no investments in long-term interest-bearing financial assets. Consequently the exposure to interest rate fluctuation is low and hedging is deemed unnecessary.

The following table demonstrates the sensitivity to a reasonably possible change in interest rates, with all other variables held constant.

NOK 1000 Increase/ decrease in basic points Effect on profit before tax

2008+100 398

-100 -398

2007+100 301

-100 -301

NOTE 18 FINANCIAL RISK MANAGEMENT



OPERATING REVENUE EBITDA

NOK 1000 2008 2007 2006

Operating revenue 840 131 751 594 611 186

Cost of goods sold 352 355 327 861 274 262

Payroll expenses 353 816 298 374 236 196

Other operating expenses 68 126 63 520 62 432

EBITDA 65 834 61 840 38 295

Depreciation 7 849 6 848 4 432

Operating profit (EBIT) 57 985 54 992 33 863

Net financial items 1 317 -1 956 1 366

Profit before tax 59 301 53 036 35 229

NOK 1000 2008 2007 2006 2008 2007 2006

Norway 298 771 293 396 233 931 36 717 40 655 29 780

Sweden 294 354 267 245 228 381 17 733 19 771 7 602

Denmark 200 346 153 518 122 213 17 651 14 393 7 350

Germany 60 016 44 349 35 323 6 590 -360 162

Eliminations/Corporate -13 356 -6 914 -8 661 -12 859 -12 619 -6 597

Group 840 131 751 594 611 186 65 834 61 840 38 295

There has been no major event between the balance sheet date and the approval of the annual accounts for 2008

Data Respons has been awarded the following grants by the Research Council of Norway in 2008:

Company Project Grant (NOK 1000)

Digitas AS FPGA Platform IPR 197

Data Respons Norge AS Studies and simulations of heat conduction in embedded solutions 58

The projects are approved as R&D projects covered by the SkatteFUNN scheme in accordance with Section 16-40 of the Taxation Act. A total of NOK 255,000 has been allocated to the projects, and this has been included in the balance sheet under other receivables. NOK 255,000 has been recognised in the income statement as a reduction in payroll expenses.

The following tables show the income statement and operating revenue and EBITDA distributed by primary segment, as if all the acquisitions had been consolidated as of 1 January 2006.

NOTE 19 GOVERNMENT GRANTS

NOTE 20 EVENTS AFTER THE BALANCE SHEET DATE

NOTE 21 PROFORMA (UNAUDITED)



CHAPTER 7: FINANCIAL STATEMENTS AND NOTESAuditor’s report

AUDITOR’S REPORT


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DESIGN & TEXTData Respons ASA

PRINTErik Tanche Nilssen AS

PHOTOSBo Mathisen, Stein Henningsen, Nils Lio, Scanpix, Getty Images, iStockPhoto.

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