ANNUAL REPORT 2012
Contents 2012 in Brief 4 Letter from the CEO 6 Vision, Mission 8 Core Business 10
CHANGE!
Small and Simple Are Good … 12 Conversations about CET Designer 13 The Flow and Ease of PGC 22 There’s No Turning Back! 24 Report on Operations 26 New Office in Kuala Lumpur 32 To See the Full Picture … 36 Groundbreaking Revolution Awaits Office Furniture 42 Corporate Social Responsibility 46 Martela – Pioneers in the Office Furniture Industry 48 Corporate Climate 58 Board and Executive Management 62
Financial Report Five-Year Summary 64 Consolidated Income Statement 65 Consolidated Balance Sheet 66 Notes for Group 68 Audit Report 73 Environmental Policy 74 Software and Company 75
Configura Sverige Aktiebolag
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Annual Report and Consolidated Financial Statements for the fiscal year 2012. Corporate registration number 556404-7156 CONFIGURA ANNUAL REPORT 2012
2012 CONFIGURA ANNUAL REPORT
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2012
Financial Sales totaled SEK 73 million (65)
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Net operating profit was SEK 5.0 million (3.4)
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in Brief
License and subscription revenue and support was SEK 26 million (22)
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Net financial assets at year-end were SEK 14.3 million
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Continued high investments in R&D were approved for the 2013 budget
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Important Events Subscriptions and annual support accounted for more than 38 percent of revenue
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The total number of sub scribed and paid licenses increased by 7.5 percent to 9,600 total licenses
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Configura expanded global operations by opening an office in Kuala Lumpur, Malaysia
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CET Designer 3.0 launched, offering major enhancements including a user-based license model and the addition of MyConfigura, a portal to all of Configura’s cloud-based services
Key Figures
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2008 2009 2010 2011 2012
Total sales, SEK M
64.9
63.9
61.7
65.2
73.2
Increase/decrease, %
22.5 -1.5 -3.4
5.7
10.1
3.8
4.6
Profit/loss after financial items, SEK M
6.4
4.7
Operating margin, %
6.9 6.8 2.6 5.3 6.9
Net financial assets, SEK M
8.7
12.5
2.2 8.4
11.0
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Bisley of the United Kingdom, a major manufacturer of steel storage products for the global office furniture industry, signed on for a CET Designer Extension We welcomed Swedish kitchen manufacturer Hagaköket as a new customer Configura announced a colla boration agreement with global office furniture manufacturer Herman Miller Limited based in Chippenham, United Kingdom The fifth annual CET Designer User Conference was held in Las Vegas, Nevada, USA, with great success
14.3
73.2 64.9
65.2
63.9
EK M
les, S
sa Total
Profit/Loss, SEK M
7 4
61.7
6.4
08 Five-Year Summary
CONFIGURA ANNUAL REPORT 2012
2008
4.7
09
2009
2.2
3.8
4.6
10
11
12
2010
2011
2012
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2012 was the year when Configura took the initiative to become a global partner for our customers. We started our operation in Kuala Lumpur, Malaysia. The idea is for this office to further assist our current customers with services both in and from more places around the world. With an operation in Kuala Lumpur, we now exist on three continents, which is important for both ourselves and our customers. The initial focus for the personnel in Kuala Lumpur is quality assurance, core development and customization. Training and support is put on hold for the moment. Today, the office consists of 15 people. We are now a global company. In 2012 Configura launched a user-based license model for our software. It gives the user the ability to work with design anywhere, at any time. Freedom! Also, all user administration takes place over the new cloud service, MyConfigura. Flexibility! On top of this, MyConfigura and user-based licenses allow development of new virtual cloud-based services such as collaboration, storage, external viewing, showrooms, etc. MyConfigura is an important foundation in our development strategy.
2012 was a year that started slow but really took off during the third and fourth quarters. We take pride in the summary that shows growth for both annual sales and the number of licenses. We will during 2013 continue our journey in the same spirit and according to our strategy. Configura is on the move! Thank you to all users, employees, customers, partners and suppliers. You are the best!
Johan Lyreborn, CEO Linköping, April 2013
We at Configura inject new energy each year in the form of new customers with new challenges, and we have continued to succeed in this during 2012. It is extremely important for us to constantly keep moving and never stop. We welcome Herman Miller Limited, Bisley and Hagaköket as customers.
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MAKING PARAMETRIC GRAPHICAL CONFIGURATION
AVAILABLE WORLDWIDE 8
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MISSION
Vision
We develop and deliver Parametric Graphical Configuration (PGC) software for companies that sell highly configurable products. We work with our customers by implementing solutions that make their sales processes more efficient, cost-effective, accurate and profitable. We value innovation, longevity and leadership.
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CORE
BUSINESS Configura Sverige is the global leader in Parametric Graphical Configuration (PGC) software solutions. We serve customers in four core markets: Commercial Furniture
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Kitchen and Bath
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Material Handling
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Industrial Machinery
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Our customers require solutions that simplify complex selling processes. Configura’s PGC software delivers those solutions. Users can create drawings, calculate prices, generate bills of material and render photo realistic 3D images – all in one step, with one affordable tool.
PGC helps our customers to reduce their costs by: Making it faster and easier to propose on a project – from weeks to days to hours
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Allowing real-time feasibility check of specified products
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Reducing specification and order-entry errors to practically zero
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Objectives
PGC helps our customers to increase their revenues by:
1. Lead as the originator and ongoing developer of PGC software
Increasing sales team retention with easy-to-learn software that quickly gets users up-to-speed on a gamut of products
Improving efficiencies and cutting lead times, enabling design and sales staff to propose more and sell more
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Commercial Furniture
Improving customer service through faster response, quality proposals and accurate ordering
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Ensuring worldwide access to current product information
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Delivering products to market faster
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As a result, profit margins can increase by as much as five percentage points depending on the industry. Configura uses a subscription licensing model, which ensures regular product upgrades, guarantees access to the most recent technology and engages users in product development. This business model provides Configura with continual and stable revenue, fully supporting our financial goals of sustainable, profitable growth. We will continue to achieve these goals by investing in research and development, employing a focused growth strategy, delivering value to our customers and making significant contributions to the global software industry.
Sofie Rönnberg Senior Application Consultant 10 CONFIGURA ANNUAL REPORT 2012
2. Deliver PGC solutions to four core global markets:
Kitchen and Bath
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Material Handling Industrial Machinery
3. Build long-term relationships with customers through a software subscription licensing model 4. Share and expand on PGC solutions through an extensive partner network 5. Inspire our employees with creative, high-tech environ ments as well as continuing education and the opportunity to work internationally
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Small and Simple Are Good … by Johan Lyreborn, CEO That IT has changed our lives has not escaped anyone. The change is in practically everything we do. Accessibility and speed have made it possible to markedly increase effectiveness for both individuals and organizations. This is a positive and has freed time and space to do more. Of course, it is up to each individual to choose what this time should be used for. But one thing is certain: There are more opportunities to improve effectiveness. … I’m thinking about a consolidation of opportunities. Today, there is such a diversity of platforms – and incompatibility between these various platforms – that we practically drown in choices to get the work done. This is where IT needs to think and deliver smarter, simpler, interconnected solutions. At Configura, we take this challenge seriously and have created an overall solution that handles diversity and simplifies complexity. In CET Designer, we have created ONE PLATFORM that can calculate and visualize products from several companies and industries. For example, a kitchen, bathroom, closet and sauna can be projected and quoted simultaneously in one program. This means that a designer/sales associate doesn’t need to use several different solutions to help a customer – with CET Designer, every thing can be done in the same program.
VOICES Conversations about CET Designer
All of a sudden, several “big islands” have become a “small, simple island.” Small and simple are good. That’s how it should be, and that’s what we work toward at Configura!
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THE KEY
Tammy Christopherson Interior Designer Canfield Business Interiors Sioux Falls, South Dakota, USA We used CET Designer for a major project in the British Virgin Islands, more than 2,000 miles away from our headquarters in South Dakota. Before meeting with the customer onsite, CET Designer helped us to design the customer’s 15,000 square-foot space, including walls, furniture and finishes. We had online meetings, sharing floor plans and photorealistic renderings created in CET Designer, so the customer could understand the project before we met in person. Then, once onsite, we used CET Designer on a laptop to meet with each depart ment head. Over the course of two days, we worked out the details of their indi vidual spaces. The software’s visualization and specification capabilities helped each person to quickly and confidently make decisions. Because of CET Designer, the customer was able to see their project in full, understand it and sign off on it. All of my customers have been amazed by the speed with which we’re able to create renderings and revisions with incredible photorealistic quality – they love being able to visualize their space and know exactly what they’re purchasing. CET Designer has allowed us to cut our work time in half by only using one pro gram instead of having to interface between multiple programs. We’re able to create 2D and 3D drawings while simultaneously specifying products. We can confidently specify complicated products using the validation tool built into CET Designer. The software helps us to get new designers in our firm up and running with very little training. In fact, CET Designer helps them to learn about manufacturers’ products. And it gives them the confidence to design and specify without a lot of oversight from other designers. If we do need help, CET Designer’s training and support is amazing. The sup port team can even “remote” into my computer to diagnose and fix a problem. Our dealership takes advantage of the training that CET Designer offers, from webinars to the annual user conference.
CET Designer is key to our success.
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Paul Riches Team Lead for Planning and Visualization Heritage Office Furnishings Vancouver, British Columbia, Canada If I had 30 seconds to tell the world about CET Designer, I’d sum it up in one word: game-changer. We simply win more work using CET Designer.
GAME-
CHANGER
Recently, we won a huge project in Vancouver – six floors of furniture and demountable walls. With a laptop loaded with CET Designer, we showed the customer in real time how we would design their project in 2D and 3D, make changes on the fly, and produce renderings and pricing. It was really something to watch the expressions on the faces of the people in the room. One of them said, “Why aren’t any of your competitors using this software?” That same competitive advantage with CET Designer enabled us to help an A&D customer facing an extremely fast turnaround. We produced full 2D plans, 3D renderings, and complete specifications and pricing within a few hours. Not only did CET Designer help the A&D firm to win the job but also, it solidified our relationship where we are now the firm’s preferred dealer. In fact, from an A&D perspective, reaction to CET Designer has been excep tional. The architects and designers realize they have a true value partner in the design process. Compared to other tools in the industry, CET Designer stands out through its intuitiveness, support structure and ease of use. We’re able to focus more on creative design rather than technical specifications. We don’t have to sit for hours pouring over spec guides and manually auditing drawings because there is an inherent confidence in the software’s accuracy. CET Designer’s training and support are second to none. The intuitiveness of the product allows training to be short. You can learn in a few hours and be producing output beyond your wildest expectations. If I have questions, I can go online or call the CET Designer support team and have an answer in two to three minutes. With most other software manu facturers, you might have to wait two to three days. From a business perspective, it has an unmatched ROI. Our internal processes are far more efficient because of CET Designer. In fact, we’ve cut our produc tion time up to one-half – which lets us do more for our customers.
CET Designer is simply the best all-in-one solution in the marketplace.
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Kristin Lundin, LEED AP Interior Designer OEC Boise, Idaho, USA CET Designer has changed the way that I work as a designer. I’m now able to be an integral part of the sales team and provide better service for my customers. Because of CET Designer, I can “move beyond drafting at my desk” and go to meetings with the sales team where I’m a part of closing the deal with customers. And our customers love it. They can see exactly how their space will look because CET Designer takes the guesswork out of visualization. The solution easily accommodates the changes that our customers request – we can work in 2D and 3D and constantly evolve the drawings to meet their needs.
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In fact, we’re seeing fewer bid opportunities come through the door – not because we’re losing projects – in fact, just the opposite – our customers are coming directly to us because they like how CET Designer helps them to visualize their space, calculate costs, validate specifications and give real-time results. Our customers see that we offer something different in the industry. CET Designer has improved our design department’s turnaround time – not only because of the ease of drawing and specifications but also because of the ability to easily share with each other, and with our customers, what we create in CET Designer. We have found it a huge benefit and timesaver for our company. The biggest win for our dealership has been gained in in this team approach – productivity has definitely increased. CET Designer has created a platform that makes designing systems furniture visual and fun. I could not imagine doing my job using other software.
Simply put, CET Designer has simplified the way we work.
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Lorele Walter Designer Office Environments Charlotte, North Carolina, USA
VISUAL
CET Designer has taken me on a journey that I never expected. It’s technologi cally advanced, fast and lets you be creative. It’s brought lots of improvements to the design department in our dealership. We have more fun, and we’re more creative in our projects. It’s also helped to improve efficiencies and output. Before CET Designer, a 200-station project might have taken a week or more to specify. With CET Designer, that time is more than cut in half. What makes CET Designer stand out are the immediate deliverables – that ability to provide instant visualization and price quotes. Customers have been blown away by our ability to produce concepts and make changes on the fly, and they love the renderings. In fact, CET Designer has changed how designers are involved in the sales process. I bring my laptop to customer meetings and present with the sales person. I can directly interact with the customer, working with them to create a space. This collaboration has streamlined the decision-making process. Other software programs don’t have these same capabilities. One of the best success stories was during a bid presentation where the customer wanted to see some value-engineered options – and they wanted the changes before the next day. I made the changes in about an hour and delivered before they even expected it. I don’t think our competitors could have done that. Plus, with CET Designer, we learn about product as we design. We’re faster, more creative and we spend less time dealing with technical specification because the software handles that. It’s enhanced our abilities as designers to be more creative. In terms of training and support, CET Designer support is very personalized – the support team understands how design works in a dealership. I can call or chat online, plus, they offer a variety of training options and work around busy schedules. They help to make you quickly successful in CET Designer.
With CET Designer, we’ve simplified how we work. It’s been a great success in our dealership.
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THE FLOW AND EASE OF PGC (Parametric Graphical Configuration) is a solution development framework for implementing quick, efficient and intuitive graphical configuration software customized to specific products and solution domains.
PGC software should: Be quick and effortless to use
PGC The PGC implementation process The PGC implementation process organizes and clarifies the available domain, manufacturer and product knowledge. This knowledge boils down to rules and restrictions providing the foundation for quick, efficient and intuitive operation of PGC software.
To achieve successful PGC implementation:
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Automate common tasks
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Hide the technical aspect of the products
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Teach available choices and possibilities
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Streamline the sales process
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Eliminate errors
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PGC focuses on the user experience provided by the overall user interface. The most important aspect of a PGC solution is the touch and feel of the application. There should be a natural flowing ease and a general feeling that the PGC software actively assists in making your every idea come to life quickly and easily. A PGC application presents a small initial user interface where each poly morphic icon represents a large number of design possibilities. Discovering these possibilities, and eventually learning the extent of the product design space, is a simple matter of playing around with these super-condensed objects and allowing them to show you how they function. Design and space planning using a PGC application is an immersive experience. Your mind and imagination enter the design space, and you play around with different design options, iterating toward a solution that fits the customer’s overall aesthetical, technical and other requirements.
Carefully listen to customer problems, requirements and suggested solutions. Digest these to expose the clarified underlying problem. Ignore the proposed solutions – the customer does not know PGC and its potential. Invent and create based on the underlying problem. Quickly produce prototype solutions using the PGC skillset and test them on end-users.
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Always work toward raising the customer’s PGC awareness, thus getting value and appreciation for PGC improvement.
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Always remember and carefully follow PGC principles.
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Avoid diluting PGC with conflicting standards, or customer or personal preferences.
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Role play to understand the user and strive to forget the technical, complicated programmer mindset.
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Every day, through hard work and practice, strive for excellence in the user experience and in programming.
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Invent new solutions following the spirit of PGC. The PGC principles were created through innovation. Innovation needs to be encouraged and cultivated. Innovation is a core PGC principle.
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A PGC application uses domain, manufacturer and product knowledge to minimize the required user input. The ultra-high efficiency of PGC not only saves time but also fundamentally changes the design process. High quality and service can be provided at low cost.
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There’s No Turning Back! by Göran Rydqvist, VP Research & Development When we started the Configura journey, we immediately created our business plan, a conceptual guide to which we have stayed true throughout our 23 years in business. But we did not really fit into any known “compartments” like CAD, drawing systems or calculation systems. Not even the more current concept of “configurator” works very well because it usually means configuring a single, stand-alone product. We long debated how to define our basic identity and, in the end, we created the new concept of Parametric Graphical Configuration (PGC). In the early 1990s, computers in sales situations were not very common, and most people had little user experience. Our goal was to create a software solution that would be instantly usable by the sales force, not just by CAD experts. So, in our early struggles to create true ease of use and specification efficiency, we developed a few basic principles: 1. Super-condensed user interface (UI) through polymorphic/parametric symbols replacing “real”products 2. Typed snapping assisting rotation, placement and adaption – connecting products together into a drawing database 3. Rules automating change, adoption, mirroring, addition and removal 4. Automatically generated 2D, 3D, calculation and order data And something really unexpected occurred. These simple inventions yielded profound results. A visual language is presented to the user, and the simple gesture-based control actively invites and encourages exploration and design. The result is an immersive virtual-reality-like design experience. When we tested our freshly built applications on new users, we were greatly encouraged. With little effort, salespersons started to use the tool and quickly became immersed in design. Because PGC is so much about the feel and flow and ease of using the system, explaining PGC and convincing executive decision-makers remains a challenge, even today. You need to explore and experience PGC to fully appreciate it. And then – there’s no turning back.
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REPORT on Operations We had another successful year. In 2012, both the consultancy and license sales grew significantly. An important milestone during the year was the opening of our office in Kuala Lumpur, Malaysia, which improves our ability to serve customers around the globe. We were also very pleased to welcome new customers in both the kitchen and commercial furniture industries.
SALES INCREASED BY SEK 7 MILLION Amounts in SEK M
2012
2011
Change
Consultancy
45
41
+4
License sales, Support and Subscription
28
24
+4
Total
73
65
+8
2012 was a turbulent year for Southern Europe, which entered into fullblown recession. However, the Nordic region kept positive momentum. Also, economies in the Americas started to regrow. Configura has little exposure to Southern Europe, so sales continued to increase. The sales in North America increased considerably in dollar terms but less so when measured in Swedish crowns, which appreciated in value during the year. Our consultancy sales increased with our new customers. Some existing customers preferred to increase their internal programming capacity rather than buy services from us. Our mission is to serve our customers with technology; we are indifferent if they buy our programming services or handle the programming. What’s most important is that Configura Extension Technology (CET) continues to grow globally. The long-term focus is to increase subscriptions in which customers pay for our technology. This year confirmed the support for our software by a growth of more than 15 percent. Our license sales are becoming almost insignificant as we only support a subscription model for new customers.
NET OPERATING PROFIT INCREASED BY SEK 1.6 MILLION: SEK 5.0 MILLION (3.4) Profits in 2012 increased as a result of increased sales, especially subscription revenues. However, costs also increased. Establishing the new office in Asia had start-up costs that did not match revenues or services rendered in the year. The dollar decreased considerably in value, which decreased profits as the company has dollar revenues matched with Swedish crown costs. However, the net effect was halved to one million SEK as we had secured historic rates in the foreign exchange market for half of the currency mismatch.
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EVALUATION OF RISK AND OPPORTUNITY
LICENSES:
Configura is the main asset for our shareholders. It is therefore natural that the company adopts a low-risk strategy. Our longterm business relationship with our customers also depends on the certainty that Configura will survive in the long-term. The company has not taken on any financial debt and presently has financial assets exceeding 20 percent of revenues. The subscription model ensures stable revenues as proven even during slumps in the business cycles. We have taken a calculated risk in changing the format of the subscription model, from machine-based to user-based licenses. User-based is the logical choice as users are or will be working more from multiple computers such as home office computers, laptops and tablets. In the short term, this change will likely decrease total number of licenses, but it promotes sales and salability in the long term. The licensing model change occurred in close cooperation with customers.
9,600
INVOICING:
7,981 2008
2010
2012
Our software’s quality and scope have increased significantly over the years, which allowed for a slight price increase. We simultaneously simplified the pricing model. The net effect on profits should be marginal. The subscription model, rather than license sales, is beneficial for our customers. Users always have access to the most up dated software version, and subscriptions can be terminated at any time, which means that the cost can continually be compared to the benefits that the software delivers. Total licenses had an aggregate increase in 2012, as has been the case every year. The stable and increased numbers confirm the value of our software and that the subscription model is a financial strength for the company. The total number of licenses increased by 667, to a total approach ing 10,000 paying users in 2012. Five main customers dominate our sales. Our revenue stream is spread among various sectors and regions. Sales in Europe and rest of the world are slowly growing as our customers and international base increase. The new office in in Kuala Lumpur, Malaysia, has a lower cost base than the other offices. The Malaysian currency is linked to the US dollar, which therefore will decrease the aggregate currency exposure for the company. A presence in Asia will make the company more global, more efficient and thus less risk-exposed.
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REGIONS
SEGMENTS
CUSTOMERS
The Americas, 41% Sweden, 37% Europe, 13% Nordic countries, 9%
Commercial Furniture, 55% Industrial Machinery, 21% Kitchen and Bath, 11% Material Handling, 10% Construction, 3%
1–5, 47% 6–10, 22% 11–15, 13% 16–20, 8% 21+, 10%
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2012
HIGHLIGHTS FEBRUARY
June
Configura released CET Designer 2.7
CET Designer 3.0 launched
Configura released CET Designer 2.7 with several enhancements, including the Reconfiguration Tool, a free utility Extension that provides an easy way to manage product inventories and reconfigurations of complex facilities.
CET Designer 3.0 launched in mid-June, offering major enhancements including a user-based license model and the addition of MyConfigura, a portal to all of Configura’s cloud-based services.
The Reconfiguration Tool uses simple graphical representations in flowchart form that let the designer track which products are warehoused or installed in which locations; create different reconfiguration scenarios in order to optimize the reuse of warehoused or installed products, prioritize the pulling of products from specified warehouses or already installed locations; and retain an accurate, historical record of product-inventory data in a single, accessible and easily updatable database.
With CET Designer 3.0, users can work when they want, where they want; they aren’t tied to a particular computer. They’re able to install and use their CET Designer license on as many computers as they want.
March Configura opened an office in Asia Configura expanded operations by opening an office in Kuala Lumpur, Malaysia, in order to provide better products, services and support to global Configura customers. A presence in Asia aligns with Configura’s mission of working closely with customers and potential customers. The office in Asia will enhance service in a new time zone at a competitive cost. The office is located in The Troika, one of the newest and most beautiful buildings in central Kuala Lumpur.
MyConfigura is each user’s personal password-protected portal to all of Configura’s cloud-based services. It’s like an umbrella under which everything a user needs – from licensing information to current projects, renderings, even videos – can be safely stored, easily accessed and readily shared.
Configura won Best of NeoCon Silver for MyConfigura Configura took Best of NeoCon Silver for MyConfigura, winning in the Software/Technology category in the annual competition held in con junction with the NeoCon World’s Trade Fair in Chicago, Illinois, USA. The competition recognizes the best new commercial interiors products.
Configura launched new Extension connecting to Khameleon Configura launched an Extension connecting CET Designer to Khameleon software. This is a dealer’s answer to getting CET Designer to “talk” to Khameleon, a business system and project accounting software used by office furniture dealers across North America. It’s a bridge between the two software products. “Configura shares our commitment to not only providing our dealer customers with best-of-class tools, but also helping them use those tools to increase effectiveness,” said Doug Angelone, president of Khameleon Software, Inc. “By leveraging our shared advanced technology platform, we are delivering meaningful integration between Khameleon and CET Designer that reduces redundant data entry, increases accuracy, improves overall efficiency and provides our customers with tremendous operating cost-savings opportunities.”
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New Office in Kuala Lumpur by Niels Madsen, Head of Asian Operations Starting a new office in another country is quite an adven ture. First, you have to find a good office space that meets budget, location and facilities needs. Second, a place to live. Third, start the subsidiary company with all legalities handled and a bank account opened. Fourth, and most important, you have to find the right people. Fifth, find somebody who can come from headquarters to train the new recruits. And sixth, seventh and eighth and … Thank you, Martin Ericsson, for signing on. Fortunately, my wife also agreed to the adventure, moving from Europe to amazing Malaysia, finally moving back to a region that we had left in 2000. At first, we lived at the office to keep under budget! It was a great solution as the office is actually a wonderful luxury apartment in an exclusive building (The Troika) in Kuala Lumpur. There is such an oversupply of high-class apart ments that some are used as offices, and at good prices. We sometimes forgot that we were living in the future office. We had an instance when we had wrongly scheduled the interview time of a candidate and almost opened the door in pajamas. … Our second office room is still called “the Master Bedroom,” with a great view of a nearby park and the Petronas Towers.
ASIA, HERE WE COME!
The office building comes with a gym, pool and an additional common meeting room. It was just a matter of adding com puters, servers, telephone, Internet and office desks, etc. We need the right environment in “Configura style” and tradition so it will be pleasant and optimal for producing the best software. Everything is now in place and already facilitating good teamwork. We had more than 100 candidates apply to work at this new office. After a thorough interview process, we hired a staff of 16 people, the best. Thank you, Nicklas Dagersten, for your important recurring visits from Sweden, recruiting and training and guiding. Our staff are in the process of becoming fully fledged “Configurians,” integrating with the offices in Sweden and Americas. Thank you, all, for joining us. Our goal is to provide first-class service in Asia, to serve all Configura customers cost-effectively and also to have some fun. This is not only about technology, transfer of technology and know-how but also about an expanding Configura. It is an exciting venture!
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September
October
Configura re-entered European office-furniture market with Bisley
Fifth annual CET Designer User Conference held
Bisley of the United Kingdom, a major manufacturer of steel storage products for the global office furniture industry, became the first European office-furniture customer on Configura’s CET Designer platform.
Configura held its 5th annual CET Designer User Conference at the Venetian/Palazzo hotel in Las Vegas, Nevada, USA. The event was attended by 150 people, including dealer representatives from Haworth, Steelcase and Teknion dealerships, and manufacturer representatives from Aurora, Haworth, Inscape, KI, Kimball, Midmark, ProjectSymbols, Steelcase and Teknion.
With Bisley, Configura re-entered the European office furniture market as a provider of design-specification-rendering-ordering software. “Our objective as a company is to continuously push the boundaries of world-class manufacturing excellence,” Bisley Marketing Manager Bruce Whitfield said. “Investing in a CET Designer Extension by Configura is an integral part of our commitment to manufacturing and product excellence and a great customer experience.” Bisley controls about 50 percent of the United Kingdom’s storage furniture market and exports to 65 countries. The company is widely known for its MultiDrawer units.
Herman Miller Limited invested in a CET Designer Extension
The two days were full of learning sessions – both large group sessions in the main meeting room and smaller “breakout” sessions. The great variety of breakouts allowed the attendees to choose the sessions most applicable to their role (designer, management, IT). Keynote speaker Ayse Birsel gave a wonderful, interactive session entitled Design the Life you Love, which included using design principles to create a better-balanced life. The evening events at the Palazzo casino included a “Tricks and Treats” Halloween reception with live music, dancing and a performance by the Configura team dressed as ABBA.
Configura announced a collaboration agreement with global office furniture designer/manufacturer Herman Miller Limited based in Chippenham, United Kingdom. Herman Miller Limited is an international arm of Herman Miller headquartered in Zeeland, Michigan, USA.
Winners of Best of CET Designer Awards announced
“Herman Miller continues to expand its operations in Europe, Asia and South America, and we see CET Designer as a key element of the systems solution to support that growth,” said Kevin Hall, who leads Herman Miller’s International Business Systems Development Information Services. “Another reason we chose Configura is its global presence as a company, with offices in Sweden, Malaysia and North America.”
Best Success Story – Steve Schwartz and the team at Canfield Business Interiors. As the first-place winner, Canfield received a new computer, highend graphics card and CET Designer license.
Configura entered a collaboration with Hagaköket Configura announced a collaboration with Hagaköket, one of the leading manufacturers of kitchen solutions in Sweden. Hagaköket is a part of the larger Nordic Kitchen Group, which has five strong brands, eight separate subsidiaries, three production units and 200 sales locations in the Nordic countries. Configura will provide the CET Designer solution for designing, specifying and visualizing kitchens for the customer. “Hagaköket wanted a fast and easy design program that simplifies the design and sales process for sales people in stores. CET Designer met the requirements that we had on simplicity of use and error-free results, while giving us the ability to customize based on the product range and options,” said Jonas Syrén, CEO, Hagaköket.
Configura announced the winners of the 5th annual Best of CET Designer Awards, an annual competition sponsored by Configura honoring best uses of the software:
Video Category – First place: Tracy Corona – Target Commercial Interiors; second place: Kristen McWethy – bkm OfficeWorks; third place: Debbie McGowan – Tangram. Rendering Category – First place: Yvanie Brosseau – Trium Mobilier de Bureau; second place: Shay O’Malley – Fluid Interiors; third place: Tammy Christopherson – Canfield Business Interiors.
November Configura released CET Designer 3.2 Configura released CET Designer 3.2, which adds new post-processing effects as well as a new rendering option in Photo Lab. The new post-processing effects in Photo Lab enable automatic cartoonlike and “sketchy” look renderings, and a combination of the two looks. Using Product Lighting, the new rendering option in Photo Lab, users can render nice images without spending a lot of time setting up the lighting. By using the product lighting option, the background of the image turns emissive and casts realistic light across the scene. CET Designer 3.2 also has enhanced saving-and-loading-of-files features. These features make files smaller, load and save faster, and even offer the option to “mirror” saved files to various locations (i.e., local and network).
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SO MANY PROJECTS
To See the Full Picture … by Matilda Borg Wigh, Solution Manager It is a privilege to be a team leader for a group of skilled, inspiring and loyal employees. Each team member has a very important role to play, and I don’t believe they under stand how unique he or she truly is for both the team and for Configura as a company. With good collaboration and the right attitude, our ambition is always to deliver the best solutions to our customers. It is a cool feeling and a big challenge to be in the middle of a group of employees with different personalities and techni cal qualifications and, at the same time, have the opportunity to make this group into a strong team. As a project manager for different projects, I constantly tackle new challenges and always have a lot on my plate. My most important assignment as a project manager is to see the full picture and to strive for goals and milestones in a structured and constructive manner while simultaneously keep dead lines and budget. I also take the impartial role of listening to the customer’s needs and wants, and formulating them into a workable strategy that will reach the best results. Then each member of the project team takes on a big responsibility to deliver their part. The most time-consuming, but also one of the most exhilarating assignments, is to listen to facts, know ledge, ideas and expertise from the different project mem bers and then compile everything into something concrete.
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MARKETING In 2012, Configura continued with a strategic, integrated marketing and sales campaign aimed at increasing global awareness and adoption of the company’s CET Designer solution.
Direct engagement CET Designer 3.0 + MyConfigura released in 2012 – a major new version of the software, which received accolades at NeoCon 2012 and, more important, from our users. Configura marketed to existing users and prospects via direct engagement with the customer – traveling to their showrooms, often in collaboration with our manufacturer customers. These face-to-face meetings and training sessions were supplemented by a direct-mail calendar campaign tied to monthly webinar offerings. The campaign has been hugely successful, increasing both sales of CET Designer as well as overall adoption rates. Configura’s twice annual Partner/Manufacturer Roundtable Meetings also served as an important marketing opportunity for the company, bringing together those who have invested in the Configura solution. Configura’s fifth annual CET Designer User Conference, held in Las Vegas in October, was attended by more than 150 users and manufacturer partners. In addition to being a networking and learning opportunity, the event served to reinforce Configura’s vision. The event highlight was keynote speaker Ayse Birsel, a renowned product designer known for Herman Miller’s Resolve collection. Birsel presented her popular workshop based on her design methodology called Design the Life You Love. Additional training opportunities and attendance at manufacturer-specific events throughout the year helped to build awareness of CET Designer’s capabilities and increase usage rates and license sales.
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& SALES As part of its public relations efforts, Configura continued to expand into social media, engaging with more fans and followers on our Facebook, Twitter and YouTube sites: www.facebook.com/cetdesigner www.twitter.com/configura www.twitter.com/cetdesigner www.youtube.com/configuraAB Marketing communications tactics in 2012 included our annual report, brochures, the monthly calendars, quarterly e-newsletters and message alerts built into the software. Configura launched an advertising campaign in 2012 featuring actual employees. Print and digital ads, targeted to the North American contract furniture market, appeared in such publications as MMQB, officeinsight, Contract and Interiors & Sources.
NeoCon In 2012, Configura participated in its 11th NeoCon World’s Trade Fair in Chicago, the largest exhibition of contract furniture and related products of its kind in North America. CET Designer users attending NeoCon were invited to register at Configura’s booth for the CET Designer User Conference and to also enter a drawing for two free trips (hotel and airfare) to the conference. The winners were drawn and announced during a cocktail party held at Configura’s NeoCon booth. The highlight of NeoCon 2012 for Configura was winning a Best of NeoCon Silver Award for CET Designer 3.0 + MyConfigura.
Public relations, marketing communications and advertising
Memberships
The results of Configura’s public relations efforts included major articles and ongoing mentions in such publications as Metropolis, Interior Design’s Show Daily, Contract, Interiors & Sources, MMQB, officeinsight, otto-otto, OFDA, Grand Rapids Business Journal and others.
In North America, Configura continued its memberships in Business + Institutional Manufacturers Association (BIFMA), Office Furniture Dealers Alliance (OFDA), International Interior Design Association (IIDA) and other associations related to the contract furniture, architecture and design, and technology industries.
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SUPPORT
& TRAINING
The Configura Support and Training team is dedicated to helping users learn and implement CET Designer in their daily processes. Our team is comprised of experts to help with that implementation. We’re not only experts on the CET Designer platform; we also are knowledgeable about interior design, the furniture industry and information technology. We know our users make a strategic business decision when purchasing our soft ware, and we want to make that decision easy to implement. In 2012, we trained more than 350 designers with instructor-led classes throughout North America. Our Beginner and Advanced classes are certified through IDCEC (Interior Design Continuing Education Council) for participants to earn continuing education units for licensing or membership requirements. Although we enjoy meeting our users face-to-face, we are continuing to expand our virtual training options with self-study tutorials, instructor-led webinars and online classes. The flexibility of our training offering ensures we have options available for all users, regardless of their level of experience or location. Support for CET Designer is included free with the purchase of a license. The Support team is available for users to ask questions and report issues from 8 am – 8 pm Eastern Time and from 8 am – 5 pm Central European Time. A primary goal for the Support team is to provide world-class customer service. We strive to make each encounter an easy and enjoyable experience while building relationships with our users. The Support team also acts as a liaison between our customers and the Configura programmers, so users’ requests and ideas can be incorporated as features in future releases of the program. The fifth annual CET Designer User Conference was held in October 2012 in Las Vegas, Nevada. More than 150 participants took advantage of this educational two-day event to learn, network and share. Once again, several CET Designer “Power Users” acted as instructors in breakout sessions, teaching and sharing with their peers the best practices and methods of using CET Designer. Representatives from seven partner companies attended the event.
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NEW PARADIGM Groundbreaking Revolution Awaits Office Furniture by Peter Brandinger, VP Business Development In 2005, I relocated from Sweden to Michigan to open Configura’s North American office. Although the office furniture industry had left the drafting boards behind, it was still stuck with CAD-based solutions from the 1980s. In North America, we had just begun working with Haworth to provide a new way of specifying furniture through a new rules-based product configurator called CET Designer. We envisioned together with Haworth (and soon Steelcase) that CET Designer would revolutionize the contract furniture industry. We believed that CET Designer would become the new industry standard for design and specification software. Well, seven years later, I now feel confident to say that it is really happening. We are now working with most of the major manufacturers in the industry, and their dealers are changing the way they operate their businesses. Many of them report huge savings and dramatic increases in sales without having to add more designers. They are delivering faster, better solutions and more options. Their customers are thrilled with the higher level of service they are provided through the excellent visualization capabilities of CET Designer. It even allows customers to actively participate in the design process. The new paradigm is here!
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RESEARCH & Configura leads in Parametric Graphical Configuration (PGC), dedicating about 20 percent of our employees to PGC-based software research and development. Our customers’ needs and priorities govern platform development. We work to ensure that our platforms’ performance and functionality keep pace with the features that our users want. In 2012, Configura concluded a major project to transition to a user-based license model and to provide access to MyConfigura, our cloud. We intro duced the user-based license model and MyConfigura in both of our soft ware platforms, CET Designer and Configura, in 2012. Platform-specific 2012 highlights:
CET Designer Platform Porting to Windows 64-bit operating system. In collaboration with external development partners, work started to port CET Designer to 64-bit operating system.
●
Save-load functionality. We developed a brand-new, save-load functionality for drawings, which provides much faster loading of files and significantly reduces file size.
●
DEVELOPMENT Configura Platform Stability and robustness in the program. We devoted a large amount of work to stability and maintenance of key functionality in the core. Efforts to break out functions from the core to standalone modules continued as part of the maintenance.
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License server. Work continued to get more customers on the license server, which has led to ongoing development of components for communication with the license server.
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DWG export function. We expanded the DWG export function with basic support for solid 3D models. This development now makes it possible to import and use model data from systems that are based on solid modeling technology.
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Advanced graphics mode. Another important development project during 2012 involved rewriting and optimizing the advanced graphics mode, which results in lower memory usage and better support for different video cards.
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R ED 3D engine. We began to implement the RED 3D engine. The goal is to use the same engine for advanced graphics mode, 3D renderings and live navigation in 3D.
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Improvements to Photo Lab and MyConfigura. We continually improved Photo Lab and MyConfigura, enhancing capabilities, user experience and integration.
●
Satellite extensions. We assigned development and maintenance of various “satellite extensions,” such as kitchen and office accessories, and Revit® and SketchUp, to Configura’s Kuala Lumpur office.
●
Two catalog tool projects. These projects – one for our office customers and another for our kitchen customers – began in 2012 with a common purpose of shortening the implementation time of product Extensions. In doing so, we hope to accelerate the sale of user licenses and to attract new customers in our core segments through lower initial cost to the customer.
●
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CORPORATE SOCIAL RESPONSIBILITY
Configura plans to build a CET Designer Extension in which users can calculate how much CO2 would be emitted from a specific designed solution, whether an office or a kitchen. Steel, glass and plastic release greenhouse gases when produced. In contrast, wood has a positive climate effect. Wood stores carbon and is optimally used as a fuel at the end of its production cycle. We can roughly calculate how much CO2 is emitted by non-wood products and thus incorporate an environmentally conscious component in our PGC-based software. The Extension will help the user to evaluate whether to specify materials that emit less CO2 or to choose to “offset” the emissions by buying voluntary carbon credits. Carbon “neutralization” is a model many airlines offer to their customers. A low or zero carbon footprint feels morally right. It can also gain credit points in many countries’ certification schemes when classifying the environmental quality of an office. Carbon offset programs typically finance tree-planting activities in Developing Countries. In fact, Configura is supporting a tree-planting project. Well, it’s more than a tree-planting project: It’s a jungle-saving project. By creating alternative livelihoods outside jungle areas, the project founders believe it’s possible to save rainforests. The project that we have chosen is in the northern part of Sumatra, Indonesia. It is the last large integrated rainforest left on Sumatra with a unique flora and fauna. It is under threat, as the easy road to economic development is to cut it down. Tree planting helps to sustain forests. Plus, sustainable forestry creates jobs. Our base country, Sweden, has never in recent times had as many trees as now. This is partly thanks to profit able forestry practices. Sweden has low carbon emissions per capita, mostly because of “The Swedish Forestry Model.” The concept is easy but needs political and financial support. Configura co-sponsored with the Swedish Industrial Development Agency (Sida) in 2012 a delegation from Indonesia to visit Sweden and study forestry. A voluntary carbon model helps the project, not only by providing a revenue stream but also by demonstrating that there are international efforts to save rainforests. Our preferred model is to support job creation outside protected areas by developing forestry. Read more about “The Swedish Forestry Model” here: www.eea.europa.eu/atlas/eea/the-swedish-forestry-model.
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Pioneers in the office furniture industry
MARTELA Martela was one of Configura’s first customers in the office furniture industry. Today, Configura software is used by 600 people in the Martela Group. “That we have cooperated for 20 years shows how satisfied we are. The program has worked well for so long, regardless of the rapid digitization and the development of drawing tools,” said Juha Vähäkoitti, the product portfolio manager at Martela who introduced and worked with Configura at Martela between 1997 and 2003. At a board meeting in Stockholm in 1993, Configura founders Göran Rydqvist and Johan Lyreborn introduced the Configura software to Martela management. Managing Director and CEO Matti T. Martela immediately realized that the program would revolutionize the industry. He invited Göran and Johan to headquarters in Finland for more demonstrations of the software. When Martela IT Manager Virpi Kiesi saw how Configura worked, she immediately wanted to start using the solution. Even though there was great interest at the management level, there was concern that the costs would exceed the benefits, but, in 1994, Martela management decided to introduce Configura.
Complexity solved with a single solution Juha Vähäkoitti saw the first Martela products included in the program. “It completely changed the sales cycle. Before we started using Configura, many people were involved a complex process of designing, specifying and ordering. With Configura, everything could be handled by one person using just the Configura solution,” Juha said.
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Juha Vähäkoitti Product Portfolio Manager at Martela
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Before Configura, the quotes that Martela would send to customers consisted of regular word documents with text and prices. There were no real floor plans except for, perhaps, a binder with brochures of the furni ture. With smaller projects, the designer might hand-draw a simple sketch. Larger spaces were specified in AutoCAD, resulting in product lists. The interior decorators also had to perform a huge amount of manual work such as selecting colors and drawing details. Then, other employees had to spend time preparing the quotes based on the product lists. Simultaneously, the sales person had to do a final pricing. “It was very complicated, and it could take several weeks before we had a complete design plan. Plus, the customers had a hard time picturing what their office would look like. Matti immediately understood how powerful it would be if the customer could see what the work space would look like in three-dimensional renderings with the right colors and materials,” Juha said. “So with Configura, it became a lot easier for our customers to understand what we were proposing. While our competitors continued to propose with word documents and brochures, our customers received 3D renderings from us. It was a great advantage to us that our proposal materials were so good.”
From two weeks to one day The first Martela product sold with the help of Configura was the table collection Opteam. When a frustrated sales person repeatedly tried to draw an Opteam table, Matti T. Martela brought him to the IT department where the sales person saw how it took about five minutes to draw the table – he was amazed. Earlier, the same assignment had taken several people and several different operations to complete the process. Now, everything could be done all at once. With Configura, a big part of the manual work disappeared. As the sales person created a rendering, the price quote and order were finalized. “To design a standard office now doesn’t take many hours. To draw and choose a chair with a material might take 20 seconds. With a simple press of a button, the order can be sent straight to production, without a single person in between. No one is needed to approve the order or to forward it to production. Whereas before it might have taken two weeks from order to factory, it now only takes one day. We offer our customers much shorter delivery times, and we keep these deadlines,” Juha said.
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Laura Kuosmanen, Sewer and Elina Ventovuori, Upholsterer, at Martela 2012 CONFIGURA ANNUAL REPORT 51
Happier customers For sales people, Configura has simplified the process of explaining options to customers. Another major advantage with Configura is all product rules are built into the software. “Before Configura, sales people had to know every connection and screw in order to understand what products could be put together. With several people involved, it was easy to make mistakes in the drawings. Today, with Configura, it is easy to create error-free renderings and orders, which gives us happier and more satisfied customers,” Juha said. It also doesn’t add much more work if a customer suddenly changes his or her mind and wants, for example, tabletops in laminate instead of birch. Before, it might have taken up to two days for two sales people to manually change every code in the quote. Today, it takes only a few minutes to generate a new quote. In the beginning, it was only possible to use the standard collections in Configura. Today, the program also includes some special products – for example, a tabletop in a special material with a customized shape. The information is provided in a technical drawing so production knows exactly how to produce the tabletop.
Cooperation in the development of Configura software During the 20 years since the board meeting in Stockholm, Martela has contributed to developing and improving the program through questions, suggestions and demands for new and better solutions. “The 3D renderings have become better, and it is possible to draw almost anything and use different kinds of lighting to make renderings even more realistic. It is not only about production and the renderings but also about things that concern all of our business processes,” Juha said. When Martela leaders introduced Configura, they were pioneers. Today, all office furniture manufacturers use some kind of drawing program. “I have not seen many other programs that can calculate the exact number of products on a customer’s drawing and where, with a simple push of a button, you can send the work order straight to the factory. Most can do nice renderings, but if you want to change something that affects the production everywhere in the world, you have to do the work manually – that is, unless you’re using Configura software,” Juha said.
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Tuulia Forstén, Upholsterer at Martela CONFIGURA ANNUAL REPORT 2012
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Martela is still ahead of its competitors, thanks to Configura. Heikki Martela, Managing Director at Martela
New challenges require new development Martela is still ahead of its competitors, thanks to Configura, said Martela’s Managing Director Heikki Martela. But the market is constantly challenging Martela. Today’s offices look different than they did 10 or 15 years ago. The individual work space is not as important as it once was. There are now more interactive surfaces and spaces that are adapted for different needs such as working alone, group projects, smaller and bigger meeting areas, and room for video conferences. An employee at an office might use a number of different work sites instead of one. Also, the need to vary colors and materials has increased. “All of this requires us to plan, configure and specify the customer’s need in a different manner. I hope we will continue to develop new and even more flexible tools with Configura,” Heikki said.
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TRUST Minna Brofeldt Customer Manager Martela Nummela, Finland I’ve used Configura software for more than four years. The software plays a big role in my daily work, helping me to produce layouts and price quotes. I like the versatility of the software. It’s so easy to use, which makes my work faster and more productive. And the 3D renderings really impress my customers. I also appreciate the software’s accuracy.
I can trust Configura 100 percent.
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CLIMATE
Corporate Configura’s corporate climate is based on three guiding principles: the Individual, the Team and the Customer.
The individual CONFIGURA ASSOCIATES ARE DEDICATED AND VALUED
It’s important for employees to be dedicated to their work and valued for it – to be part of a team effort – and to have fun doing it. Configura offers competitive salary and benefits packages. We invest in our employees with continuing education and training, and company-sponsored physical fitness programs. We offer flexible work hours and encourage our staff to maintain a healthy balance between their personal and professional lives. We’re a great company to work for – and the high number of long-time employees and low staff turnover are evidence of it!
The TEAM CONFIGURA’S TEAMS ARE INDEPENDENT, RESPONSIBLE AND LEADERSHIP-DRIVEN
Configura’s structure of small, self-managing groups, in which each person’s suggestions and decisions are valued, results in an agile, flexible organization that quickly responds to customers’ needs and adapts to changing market conditions. A functional mix of competencies and personalities in each team delivers organizational results and contributes to each associate’s professional development.
The CUSTOMER OUR CUSTOMERS DESERVE OUR BEST
Configura’s line of business demands industry expertise in bringing products to market and supporting our customers with unparalleled service and support. Configura has enjoyed low-employee turnover over the years and, today, we have significant depth of customer and market knowledge. We maintain and build on our expertise by continually researching, learning and communicating among flexible teams. We cultivate longterm relationships with our customers and consider them partners in our efforts to develop solutions that benefit a greater good.
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FUNCTION
AGE
EDUCATION
GENDER
Consultants, 45% Research and D evelopment, 21% Support and Training, 13% Marketing and Sales, 8% Administration, 7% IT, 6%
20–29, 34 % 30-39, 46% 40–49, 17% 50–59, 3%
Academic studies: 4 years or more, 63% 3 years or more, 16% Up to 3 years, 4% None/less than 2 years, 17%
Male, 75% Female, 25%
Jon Lindholm Communications Manager
Victor Niskala Web Developer
Freddie Pintar Web Developer
Frida Lindh Accountant
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Board and Executive Management
Johan Lyreborn
Sune Rydqvist Chairman, born 1938. Entrepreneur and inventor. Sune has been a driving force in the development of Configura.
CEO, born 1963. M.Sc. Computer Science and Engineering, Linköping University of Technology.
FINANCIAL REPORT 2012
Niels Madsen
Johan Bengtsson
Göran Rydqvist VP Research & Development, born 1964. M.Sc. Computer Science and Engineering, Linköping University of Technology.
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CFO, born 1961. MBA, INSEAD. B.Sc. Stockholm School of Economics and Business Administration.
VP Marketing, born 1960. M.Sc. Mechanical Engineering, Chalmers University of Technology.
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Five-Year Summary
Consolidated Income Statement
Summary of the Configura Group’s financial development, 2008-2012 2012
2011
2010
2009
72,664
64,602
60,508
62,881
64,649
4,611
3,800
2,164
4,672
6,426
26,548
21,311
18,296
21,669
21,770
Average number of employees
81
78
76
69
73
Equity/assets ratio, %
39
47
49
53
54
Operating margin, %
7
5
3
7
7
Net sales, SEK T Profit/loss after financial items, SEK T Total assets, SEK T
2008
Definitions of the key ratios used are given in Note 1.
SEK thousand
Note
2012
2011
1
Operating income Net sales
72,664
64,602
Change in work on contract
584
600
Total income etc
73,248
65,202
Operating expenses Other external expenses
-19,390
-16,054
Personnel expenses
-48,574
-45,539
2,3
Depreciation of tangible fixed assets
-213
-160
Proposed appropriation of profits
Other operating expenses
-66
-27
The Group’s non-restricted reserves according to the Consolidated Balance Sheet totaled SEK 6,822 thousand. There are no proposed allocations to restricted reserves.
Total operating expenses
-68,243
-61,780
Available for appropriation by the Shareholders’ meeting: Retained earnings, SEK 60,701.76 Net profit for the fiscal year, SEK 3,249,586.17
3,310,287.93
The Board of Directors and the CEO propose that the profit be appropriated as follows: Dividend to the shareholders, SEK 3,006,000.00 To be carried forward, SEK 304,287.93
3,310,287.93
Total operating income
5,005
3,422
Income from financial investments 4
32
-5
Other interest income
Income from current investment
69
462
Interest expense and similar financial items
-495
-79
Total income from financial investments
-394
378
Income after financial items
4,611
3,800
Tax on income for the year
5
Net income for the year
-1,298 -1,193 3,313
2,607
Earnings and financial position The Company’s earnings and financial position at year-end are presented in the following Income Statements, Balance Sheets and notes thereto.
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Consolidated Balance Sheet SEK thousand
Note
12/31/2012
12/31/2011
SEK thousand
Note
12/31/2012
12/31/2011
1
ASSETS
EQUITY AND LIABILITIES
Fixed assets
Equity
12
Share capital
200
200
Restricted reserves
3,196
3,718
Non-restricted reserves
3,509
3,507
Net income for the year
3,313
2,607
Financial fixed assets
Total equity
10,218
10,032
Other long-term receivables
550
550 550
Provisions
Tangible fixed assets Equipment, tools, fixtures and fittings
6
556
488
556 488
7
550
Total fixed assets
1,106
1,038
Deferred tax liabilities
890
1,312
890 1,312
Liabilities Current assets
Bank overdraft
Inventories, etc.
614 -
Finished goods and goods for resale
Work on contract
8
84
61
137
-
221 61
11
614
-
Current liabilities Advance payment from customers
6,827
1,898
Work on contract
8
-
844
Current receivables
Accounts payable - trade
1,477
1,455
Accounts receivable – trade
7,117
Income tax liabilities
450
-
1,096
1,009
4,976
4,761
Total current liabilities
14,826
9,967
Total equity and liabilities
26,548
21,311
8,355
Current tax assets
80
225
Other current liabilities
Other current receivables
45
174
Accrued expenses and deferred income
2,433
1,693
Prepaid expenses and accrued income
9
10,913 9,209
Current investments Other current investments
10
13
588
565
588 565
Pledged assets
Floating charges for bank overdraft facility
Cash and bank balances
2,000 2,000
11
13,720
10,438
Total current assets
25,442
20,273
Total assets
26,548
21,311
2,000
2,000
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Contingent liabilities None
None
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Notes for Group Note 1
Accounting principles The Company’s annual report has been prepared in accordance with the Swedish Annual Accounts Act and the general advice and guidelines of the Swedish Accounting Standards Board, except for BFNAR 2008:1 Annual Reports in smaller listed companies (K2 rules). The accounting principles remain unchanged compared with the previous year. Consolidated statements
Work in progress Income from consultant assignments is recorded according to Income Tax Legislation. Income and expenses from assignments secured at a fixed price are recorded during the duration of the assignment as work on contract in the balance sheet, and are accounted for profit when the assignment is concluded. Balanced work in progress is reduced with anticipated loss. Income and expenses from assignments on hourly basis are accounted for in the pace the assignment is completed and invoiced for, therefore there is no balance item regarding these assignments.
The consolidated accounts include the subsidiaries in which the Parent Company, directly or indirectly, holds more than 50% of the votes.
Fixed assets
The consolidated statements have been prepared according to the acquisition accounting method. This means that upon acquisition, a subsidiary company’s equity, established as the difference between the real value of assets and liabilities, is eliminated in full. The Group thus only includes the part of the subsidiary’s equity that has accrued since its acquisition.
Equipment, tools, fixtures and fittings
If the consolidation acquisition value of the shares exceeds the value of the subsidiary’s net assets in the acquisition analysis, the difference is recorded as consolidation goodwill. If, on the other hand, the consolidation acquisition value of the shares falls below the value of the subsidiary’s net assets in the acquisition analysis, the difference is recorded as a provision for negative goodwill. The dissolution provision is based on expected earnings. The Company uses the current method when translating the annual statements of foreign subsidiaries. This means that the assets and liabilities of the foreign companies are trans lated using the year-end exchange rate. All income statement items are translated using the transaction exchange rate for the year. Translation differences are recorded directly under Group equity.
Tangible and intangible fixed assets are depreciated systematically over the estimated useful life of the assets. The following depreciation periods are applied: 5 years
Research and development Expenditures for research and development projects are generally written off on an ongoing basis as these expenditures arise. Investments Current investments in shares have been valued to the lowest of acquisition value or market value at year-end. Cash flow Cash flow is prepared using the indirect method. The reported cash flow comprises only transactions involving in and out payments.
Income
Definitions of key ratios
Sales of goods are reported at delivery of product to the customer, according to the terms of sales. Sales are reported net after value-added tax, discounts and exchange rate differences when sales in foreign currency.
Equity/assets ratio Equity and untaxed reserves (less deferred tax) in relation to total assets.
Principles for reporting income from service and construction contracts are reported under ’Work on contract’. Receivables
Return on total assets Income before deduction of interest expenses, as a percentage of balance sheet total. Return on equity Income after financial items in relation to equity and untaxed reserves (less deferred tax).
Receivables are reported in the amounts that, on basis of individual assessment, are estimated to be received. Income taxes Reported income taxes include taxes that are to be paid or received during the year, adjustments relating to previous years’ current taxes and changes in deferred taxes.
Note 2 Average numbers of employees, salaries, other remuneration and social security contributions
2012 2011 Average number of employees
The valuation of all tax debts and receivables are at their face value, and are performed according to the tax rules, and at the tax rates that are decided or that have been announced, provided there is a high probability that they will be approved. A separate assessment of the offset ability of the tax claims will be done.
Women Men
17 15 64 63
81 78
The tax effects for the items reported in the income statement are also reported in the income statement. The tax effects of items that are accounted for directly against equity are also reported directly against equity.
SEK thousand Salaries and other remunerations amount to: The Board of Directors and the CEO Other employees
1,800 31,262
1,569 29,629
Total salaries and remunerations
33,062
31,198
8,903
8,612
3,188
3,038
Due to the relationship between accounting and taxation, deferred tax liabilities on untaxed reserves are reported as a part of untaxed reserves in the parent company. Foreign currencies Receivables and liabilities denominated in foreign currency are valued at the balance sheet rate. Where hedging is implemented, such as forward contracts, forward rate is used. Profits and losses on operating receivables and liabilities are disclosed as other operating income and other operating expenses respectively.
Statutory and contractual Social Security contributions Pension expenses (of which 783 (804) are in respect of the Board of Directors and the CEO) Total salaries, emoluments, Social Security contributions and pension expenses
45,153 42,848
Members of the Board and Senior Management
2012 2011 Number on balance sheet date
Members of the Board CEO
Percentage males
Number on balance sheet date
5 100% 1 100%
Percentage males
5 100% 1 100%
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Note 3
Absence due to illness
Total absence due to illness - Absence due to illness, males - Absence due to illness, females - Employees aged <30 - Employees aged 30–59
2012
2011
2,43% 1,87% 5,15% 1,78% 2,58%
2,07% 2,07% 2,10% 1,83% 2,15%
Income from current investment SEK thousand Dividens Capital gain disposals Depreciation
Note 4
Note 8
2012 2011 32 4 - 14 - -23 32 -5
Note 9
Work on contract SEK thousand Contract costs incurred Provisions work on contract Invoiced partial amounts
Note 6
Tax on income for the year SEK thousand Tax for the year Tax relating to tax allocation reserve Deferred tax liabilities Change in deferred tax due to change in tax put
2012 2011 -1,706 -15 249 174
-1,298 -1,193
-1,466 -33 306 -
Equipment, tools, fixtures and fittings 12/31/2012 12/31/2011 SEK thousand Opening acquisition value 4,017 3,655 Changes during the year - Purchases 283 356 - Translation differences -18 6 Closing accumulated acquisition value
4,282
4,017
Opening depreciation -3,529 -3,365 Changes during the year - Depreciation -213 -160 -Translation differences 16 -4 Closing accumulated depreciation Closing residual value according to plan
Note 7
-3,726
-3,529
556
488
Other long-term receivables 12/31/2012 12/31/2011 SEK thousand Opening acquisition value 550 550 Closing accumulated acquisition value
550
550
Closing book value
550
550
3,849 -703 -3,009
3,227 -665 -3,406
137 -844
Prepaid expenses and accrued income 12/31/2012 12/31/2011 SEK thousand Prepaid rent 380 389 Prepaid insurance premiums 253 315 Accrued income 954 168 Other items 846 821
Note 5
12/31/2012 12/31/2011
2,433 1,693
Note 10 Current investments
12/31/2012 12/31/2011 SEK thousand Book value, total 588 565 Listed stocks included in the above - Book value 588 - Market value 668
588 565
Note 11 Bank overdraft facilities The credit facility granted amounts to SEK 1,000 thousand (SEK 1,000 thousand).
Note 12 Change in equity
12/31/2012 12/31/2011 SEK thousand Restricted equity Share capital Share capital 200 200 Restricted reserves Opening balance 3,718 4,575 Transfers between restricted and non-restricted equity -522 -857 Closing balance
3,196
3,718
Closing total restricted equity
3,396
3,918
Non-restricted equity Opening balance 6,144 4,234 Dividends -2,806 -1,663 Translation difference -321 79 Transfers between restricted and non-restricted equity 522 857 Net income for the year 3,313 2,607 Closing total non-restricted equity
6,822
6,114
Accumulated translation differences reported directly against equity capital amount to SEK -164 thousand (SEK 157 thousand). Number of shares amounts to 2,004
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Note 13 Accrued expenses and deferred income
12/31/2012 12/31/2011 SEK thousand Accrued vacation pay 2,611 2,566 Accrued social security contributions 2,065 2,036 Other items 300 159
4,976 4,761
Pages 64–72 are a translation of Group figures in Configura Sverige AB’s (Corporate Registration Number 556404-7156) official financial statements. In addition to the information included in this document, the official financial statements include figures of Parent Company and a Directors’ Report. This report has been replaced by more substantial information on pages 1–63. Configura Sverige AB’s official financial statements are available at the Swedish Companies Registration Office.
Audit Report
Linköping, April 4, 2013
Johan Lyreborn CEO
Complete Financial Statements
Sune Rydqvist Chairman of the Board
Jonas Leek, Authorized Public Accountant, has issued an Auditor’s Report for the official financial statements. His Auditor’s Report does not contain any comments. The auditor’s recommendation to the general meeting of shareholders is that the income statements and balance sheets of the Group be adopted and that the members of the Board of Directors and the Managing Director be discharged from liability for the financial year.
Linköping, April 4, 2013 Göran Rydqvist
Johan Bengtsson
Jonas Leek Authorized Public Accountant
Niels Madsen
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Policy
EnvironmentaL
Software and Company CET Designer ®
At Configura, we work to minimize the impact of our business on the environment. Within the company, we actively work to spread knowledge about and commitment to environmental issues. Configura will:
Give priority to purchasing as well as using products and services with the least environmental impact
●
Endeavor to reduce our energy consumption
●
Minimize the amount of waste we produce
●
Encourage electronic documentation, marketing and commerce
●
CET Designer is a complete design, specification and visualization tool that allows designers and salespeople to complete every step of the sales and order process with one single program. Through rapid graphical configuration, it creates layouts in 2D and 3D as well as accurate quotes and order data. The program is designed as a multi-company solution, which means that end users can work with products from different manufacturers.
CET Developer® CET Developer is a programming environment used to create Extensions for our base application, CET Designer. Using CET Developer, our development partners can quickly build Extensions containing product catalogs or additional features, such as links to ERP systems.
Make environmental demands of our suppliers
●
Continuously improve our environmental work
●
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Configura® Configura is a highly customizable graphical sales configurator available to manufac turers. The system is built to fit a manufacturer’s exact needs in terms of sales automation and has been successfully implemented in sales organizations in the Commercial Furniture, Material Handling and Industrial Machinery business segments.
InstantPlanner® InstantPlanner is a generic space planning tool used primarily by manufacturers, distributors, system integrators and consultants in the Material Handling industry. InstantPlanner is based on the same core technology as Configura. However, whereas Configura focuses on configuration and calculation, the main focus of InstantPlanner is on drawing and visualization of storage and warehouse solutions.
The Configura Group Configura Sverige AB is the parent company of the Configura Group (referred to as Configura), which also includes the subsidiaries Configura CET AB, Configura Inc. and Configura Pacific Sdn Bhd. Configura’s operations are based on its proprietary software platforms: Configura, CET Designer, CET Developer and InstantPlanner. Configura licenses its software to customers based on a subscription model, with the license fee including new versions and support.
configura .com
Configura Sverige AB Drottninggatan 14, Box 306 SE-581 02 Linköping, Sweden Tel. +46 13 37 78 00 Fax +46 13 37 78 55 info@configura.com Lilla Bommen 1 SE-411 04 Göteborg, Sweden Tel. +46 31 13 48 54 info@configura.com
Configura Inc. 100 Grandville Ave SW Ste 501 Grand Rapids, MI 49503 Tel. +1 616 242 6262 Fax +1 616 242 6263 usinfo@configura.com
Configura Pacific Sdn Bhd The Troika, B-23-1 19 Persiaran KLCC 50450 Kuala Lumpur, Malaysia Tel. +60-321 81 28 77 info@configura.com