ANNUAL REPORT 2012 PAYEX HOLDING AB
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PayEx is owned by Max Hansson and was founded by him in 1972. However, the story really begins earlier than that. As a young man, Max was sitting in his father's office writing out invoices for his auction firm in Gotland when he got the idea of using carbon paper to avoid having to write out the invoices twice. He also used windowed envelopes to avoid writing out the name and addresses twice. These things seem obvious to us today, but they weren’t then. Max eventually took over his father's auction company. But times had changed and the auctioneering industry was in decline. It became increasingly difficult for Max to do what he liked doing best. Invoicing. In 1972, Max started up Faktab, which later became PayEx. He took over responsibility for his customers' paperwork and made it more efficient. The same concept is still used today, but new times bring new opportunities. Today, Max runs the Nordic region's only comprehensive group in payments. What began with carbon paper is today referred to as an Invoice Service.
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PayEx Holding AB Annual Report 2012
Contents The company in brief
2
The year in brief
2
A word from the CEO
4
Business concept and strategy
5
Market
7
Business areas
8
Sustainability
12
Employees
13
Board of directors and management
14
Administration report
17
Multi-year overview
18
Financial reports
19
Accounting principles
26
Notes
27
Board signatures and the auditor's signature 32
PayEx Holding AB Annual Report 2012
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2012
The company in brief:
The year in brief:
Experts in payments
A strong team
PayEx is the only supplier in the Nordic region that offers
The establishment of a new organisation and manage-
comprehensive payment solutions. That makes us unique.
ment team began in January. The organisation was
Our wide range in terms of both services and channels
strengthened by the recruitment of a CFO, a Marketing
makes us the payment partner that companies in the Nor-
Manager, a Credit Manager and a Country Manager for
dic region need. We are PayEx – Experts in payments.
Finland.
The Nordic group with its roots in Gotland
Service and ability to deliver
PayEx operates in Sweden, Norway, Denmark and Fin-
PayEx always endeavours to deliver higher service levels
land. Its head office is in Visby on Gotland. The founder,
and higher quality at a lower cost. We established a col-
Max Hansson, is the sole owner of PayEx.
laboration with an offshore developer for more efficient, more flexible IT development. A change process was
Three business areas
launched during the year in order to strengthen our qual-
We are organised in three business areas:
ity levels and our ability to deliver in the long term.
Invoicers, Merchants and Mobile. Our financial services are managed by PayEx Credit AB.
SMS tickets PayEx is a supplier to the text-messaging service intro-
Employees
duced by SL, UL and eight other public transport compa-
At 31 December 2012, PayEx had 465 employees.
nies on 1 February 2013. The agreement shows that our well-established, well-tested services fully meet the public transport companies' requirement for payment services at the leading edge of technological development. A wallet in your mobile phone Business relating to mobile payments has taken off this year. PayEx was one of the first operators on the market to offer mobile payment platforms and is responsible for the technology platform for WyWallet. Acquisitions The acquisition of Mynt Betalingsterminaler AS strengthens PayEx's position as a supplier of payment terminals and as one of the leading providers of payment solutions
Integrated payment terminals
in the Nordic region. 2
PayEx Holding AB Annual Report 2012
A Word from the CEO
A Word from the CEO
PayEx Holding AB Annual Report 2012
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A Word from the CEO
Business concept and strategy
Over the past year, PayEx has strengthened its position as the leading Nordic supplier of payment and financing solutions in a competitive market.
We adjusted our cost base, strengthened our organisation and delivered new, future-oriented services to the market. 2012 was our strongest year ever and, compared to 2011, our operating profit rose by just over 30 MSEK, or 137 per cent. PayEx is in a stable position and is prepared for continued growth and strong profitability in 2013. Strong operator in many markets Our payment services and related financial products were developed further during the year. PayEx is a unique operator in the market because we can offer a comprehensive concept for payments in all channels – online, mobile, payment machines, physical stores – with the widest range of payment and financing products on the market. Our customers can thus make or accept payments wherever, whenever and however they want. We entered into important customer agreements that combine our payment and financing services in segments such as retail trade, banking, finance, transportation, health care and telecoms. We are proud to have strengthened our position as a leading provider of mobile payment solutions in 2012. This involved deliveries to customers such as 4T Sverige (WyWallet) and the Norwegian transport companies NSB (train tickets) and Ruter (bus, train, tram). We also entered into agreements with ten public transport companies for delivery of payment solutions for SMS tickets. These entered into force on 1 February 2013. Acquisitions have enabled us to achieve a favourable position in the Nordic payment terminal market. That allows us to offer the most modern terminal platforms in the Nordic region where various loyalty solutions, gift cards, cou-
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PayEx Holding AB Annual Report 2012
The obvious choice PayEx is the Nordic region’s leading provider of payment solutions. 40 years’ experience combined with our great ability to develop innovations and our focus on quality and relationships have made us what we are today: the only provider in the Nordic region that offers comprehensive payment solutions. Our wide range in terms of both services and channels makes us the payment partner that companies in the Nordic region need. We are the obvious choice for payments – today and tomorrow. We are “PayEx – Experts in payments”. PayEx invoicing services handle customers’ invoicing, payments, debt collections and payment reminders, sales ledgers, etc. This gives our customers more time for their core activities, along with better control and monitoring and reduced loan losses. PayEx is also a leader in mobile payments for retail sales in shops, payment machines or online. Banks, operators, debit card companies, IT companies, telecoms companies and a number of niche operators all agree that the mobile phone will soon take over as a wallet. When this happens for real, the mobile phone will not only replace cash and credit cards, it will also replace all the other documents we have in our wallets. PayEx is leading these developments and sees great potential in this area.
pons and replenishment services are combined as required. Important agreements in this field have been signed with companies such as ATG, Hertz, Narvesen, 7-Eleven Norge and Telenor Sweden. We have thus created a good opportunity to become one of the three largest providers of payment terminals in the Nordic region. We have continued to focus on providing the best services in the invoice management market and our customers have shown renewed and increased confidence in us in this important area. Service and cost-effectiveness We are constantly seeking to become more efficient and provide a better service for our customers. For that reason, this year also saw some restructuring and steps to make our organisation more efficient. This has led to a reduction in our overall cost base, but we have also recruited new skills to meet future demands and expectations. Skills development will be carried on continuously to improve our customer and service processes. Growth is the order of the day PayEx looks forward to 2013 with confidence. Our aim is to further strengthen our position in the Nordic market. By offering the Nordic region's widest range of the most advanced services and focusing on providing the best service every day, we hope for new assignments to help our customers do more business and more profitable business. Jonas Lagerstedt CEO up to October 2012 Chairman of the Board from October 2012
Focus on technology and innovation PayEx focuses particularly on technology, innovation and entrepreneurship. This has paved the way for our leading position in mobile payment solutions, among other things. Our company is founded on entrepreneurship. Today, we are passionate about supporting other entrepreneurs to succeed in their businesses. By leading technological development and being the best at innovation and knowledge, we create new industry standards and new business for our customers.
Raymond Klavestad CEO from October 2012
A Word from the CEO
Business concept and strategy
Best at quality and reliability Quality and reliability are important keywords for us at PayEx. We also cherish our Gotland heritage and our core as a family business. It leaves its mark both internally and on our customer relationships. We build long-term relationships and endeavour to be a partner rather than a mere supplier to our customers. Our business is based on the premise that things are going well for us when they are going well for our customers. When they make money, we can as well. In recent years, PayEx has undergone a series of changes to make its organisation more professional and more efficient. We have brought about conditions to allow us to continue growing and developing innovations. A new management team was appointed in 2011 and the company has since undergone a series of measures to increase efficiency and raise quality levels. This has meant that we can now concentrate on developing our services to become an even more quickfooted, reliable, customer-oriented partner to Nordic companies. We have identified a number of key areas to ensure that we are and will remain the obvious choice for payments within the Nordic region. PayEx endeavours to be: • Customer-orientated with high service levels • The best in the industry for quality and reliability • The Nordic region’s best employer • Financially strong so we have the resources to develop new and better services for our customers To further strengthen us in terms of customer service, in 2012 we launched a new customer service unit and took steps to further improve the quality and reliability of our services.
always offer our customers the best, most secure and most innovative solutions. In 2012, we acquired the Norwegian terminal company Mynt, which strengthened our position in terminal payments in the Nordic region. PayEx has identified significant opportunities for organic growth in Norway, Denmark and Finland, where we are not yet as big in invoicing services as we are in Sweden. (Read more in the Market section on page 7.) Strong partners and demanding customers We have strong local partners such as Swedbank and Danske Bank. Our customers include many of the Nordic region’s bestknown and most demanding customers, including Apoteket, Reitan, Telia, Telenor, ATG, Svenska Dagbladet, Aftonbladet, Storstockholms Lokaltrafik, Blocket, Ica and NSB. As far as they are concerned, we are a reliable partner offering a broad range of competitive services that is able to meet their need for customised, flexible solutions. Business concept PayEx delivers comprehensive payment solutions to companies in the Nordic region. Vision The obvious choice in payments in the Nordic region. Strategy Our services must have the highest levels of quality, security and reliability. We are driven by our high service levels, ability to develop innovation and entrepreneurial spirit.
Acquisitions supplement organic growth PayEx is mainly growing organically but also supplements that organic growth with selected acquisitions to guarantee that we
PayEx Holding AB Annual Report 2012
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Market The conditions in the market for payment solutions differ from one country to another and from one industry to another. However, what is common to the Nordic market is a growing demand for suppliers who can adopt a holistic approach and offer solutions that lead to higher profitability for customers. PayEx is well positioned to meet those needs. E-commerce is growing rapidly Thanks to technological solutions, secure payments and easy access, we are seeing a change in consumers' purchasing behaviour. We are no longer dependent on shop opening hours, geographical distance or having money in our wallet. E-commerce is a rapidly growing sales channel. According to the Svensk Handel [Swedish Trade Federation] report entitled "Nyckeltal för E-handel 2012–2013" [Key indicators for E-commerce 2012-2013], e-commerce increased by 15 per cent during the year. Both companies and consumers have matured and growth is steady. Simplicity and security are the keywords for e-commerce. Regardless of whether it is question of invoice, direct, mobile or card payments, everything can be done on-line. This flexibility contributes to an increase in sales for the retailers. At PayEx we are continually working on innovative solutions to meet our customers' needs. We are constantly seeing how new trading sites take shape online and it is exciting to be at the centre of these changes. Our wide range of services is an advantage in an e-commerce market in which the proportion of international players on the increase. By offering comprehensive solutions, we ensure that our customers have no need to go elsewhere. Great opportunities in a rapidly developing market One of the payment industry's most important issues for the future is solutions for payments by mobile phone. According to Gartner's "Market Trends: Mobile Payment, Worldwide 2012 " mobile payments will increase by 42 per cent a year globally between now and 2016. In the Nordic region, however, mobile payments have been slower to break through. One reason for this is the lack of a standard solution. Mobile payments is a broad area that involves a range of industries and this lack of clarity causes uncertainty for both companies and consumers. Another reason is the investment required to enable a merchant to offer mobile payments. If consumers do not demand the service, the investment is postponed. In order for consumers to begin demanding the option to pay via mobile
phone, they must see the benefits of the service or that it is fun to use and they must feel that it is secure. When that happens, development will take off in earnest. One clear trend is that industries are joining together in partnerships to offer their mobile wallets. The four major mobile operators' launch of WyWallet in June is one example of this. PayEx supplies the technical solution for the system. A pilot project involving mobile payments also started up during the year in the grocery trade, among others. Debt collection – a topic for discussion The debt collection industry has been the subject of much discussion during the year. The debate has centred around operators with major flaws in their credit assessments and in the information they provide on loan conditions that, at the same time, carry out aggressive marketing. This has been highlighted in the media and the evening papers and metropolitan press have carried reports of fake invoices and debt traps. Kronofogden [the Swedish Enforcement Authority] has noted that unpaid SMS loans to private individuals have increased by 70 per cent since 2011 and has sharply criticised the debt collection companies that manage these loans. Datainspektionen [the Swedish Data Inspection Board] increased the requirements for transparency in demands for payment during the year and it is therefore increasingly important for operators such as PayEx, which offer serious debt collection solutions, to be highlighted as reliable alternatives. Package solutions Companies want to offer several different payment options to their customers and that makes packaging of payment services an attractive product, which in turn leads to cooperation between different companies within the payment industry. PayEx has a great advantage in that it is able to offer such comprehensive solutions to its customers. At PayEx, there is cooperation between the Merchants, Invoicers and Mobile business areas to offer customers a comprehensive range of leading payment services in all situations.
Online card payments 6
PayEx Holding AB Annual Report 2012
Business concept and strategy
Market
PayEx Holding AB Annual Report 2012
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Business areas
Business areas
Invoicers – a challenging year with new customers and a more efficient organisation.
Merchants – demand for PayEx Merchants' services has been high in 2012, particularly in e-commerce but also in solutions covering multiple channels. Our transactions in e-commerce increased by over 40 per cent during the year. We also made investments to enable us to offer invoicing and part-payment services to our merchants on our own account.
2012 was a year of development for Invoicers on several levels. Our largest customers showed renewed confidence in us and we concluded agreements with several new customers and made our organisation more efficient to guarantee the quality of deliveries to our customers. The Invoicers business area is responsible for PayEx's invoicing services and sales of billing, debt collection and financing services to new and existing customers. During the year, Invoicers has been actively working to make the organisation more efficient in order to focus even more on our sales and to be in a better position to attend to and further develop our existing client relationships. We have also integrated Delivery Management into the business area to guarantee the quality of deliveries to our customers. These measures have been successful and, as a result, we have obtained several new customers and all our largest customers have shown renewed confidence in us.
The Merchants business area offers a comprehensive payment service for merchants who require multiple channels such as payment terminals in stores, payment solutions on the internet and mobile payment solutions. Demand for our solutions has increased greatly, particularly from transaction-intensive companies such as ATG, HBO and several public transport companies. PayEx has a well-established position among these companies, particularly in solutions for e-commerce. We see significant growth opportunities in payment solutions for physical commerce. We also offer additional services such as gift cards, skimming, anti-fraud, subscription payment and reporting services and even here we find that demand is growing. We handled almost 350 million transactions for our customers in 2012. A number of large customers have joined PayEx during the year, examples include ATG, Hertz, NSB, Ruter, SANOMA, HBO Nordic and Dansk Supermarked.
New customers and closer cooperation The final part of the deregulation of the pharmacy market will be implemented in 2013. It relates to the sale of DOS packaged medicines. Apoteket AB successfully retained half of the business, while the other half went to two new operators, Svensk DOS AB and Apotekstjänst Sverige AB. Both these operators chose PayEx for management of their part-payments and invoicing. PayEx is one of the leading providers of invoicing services to telecoms and media companies in the Nordic region. We continued to strengthen our position in relation to these customer groups in 2012. One of the most exciting agreements during the year was with Svenska Dagbladet, which chose to outsource all its subscription invoicing to PayEx. Canal Digital Kabel TV also chose PayEx as a supplier in 2012. The effective cooperation with our partner banks continued during the year. They bring in a steady flow of customers and we work actively to support the banks in their work. Active product development During the year, we continued to invest heavily in product development to enable us to offer the
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PayEx Holding AB Annual Report 2012
latest products and ensure that we have the products the market demands. We have continued to develop our successful credit account product. We have also produced a concept for dentists that involves a simple way for them to offer their customers part-payment for their treatments. We have also entered into a cooperation agreement with the Nordic region's leading provider of medical records to the dental industry, Opus Dental. This means that our credit account is directly integrated into the dentists' system. In the last few days of the year we signed an agreement with TeliaSonera Finans whereby we will deliver a platform with associated administration for credit accounts that TeliaSonera Finans will offer to the Telia group in the Nordic region. In 2012, we initiated a project in which we highlighted Debt Collection as an important area for investment in all Nordic countries. We are going through our systems, processes and business models to ensure we will have the sharpest range of debt collection products on the market ready in 2013. We have also begun to strengthen the sales side of our debt collection services during the year. To continue to retain our position as a leading outsourcing company in invoicing, we have started up an extensive project to produce a completely new sales ledger system using the latest technology and with all the features required by demanding invoicing customers. We have been able to start-up a pilot customer in 2012 and will continue to transfer our customer bases in 2013.
Considerable growth in e-commerce E-commerce in the Nordic region is growing annually by between 10 and 20 per cent and is now valued at approximately SEK 100 billion. PayEx has been active in e-commerce for twelve years and is in a strong position, particularly in Sweden and Norway. Our investments in Denmark in recent years have performed extremely well. We are now also active in the Finnish market, where both development and the competitive situation provide excellent opportunities for strong growth. in 2012, the number of PayEx transactions
The future The Invoicers business area laid a good foundation for the future in 2012 in terms of both internal processes and product development. We are seeing a growing demand for our financial services and we expect that this trend will continue in 2013. We also expect more activity in debt collection as a result of the investments we began in 2012. Sweden and Norway are the Invoicers business area's strongest markets, but we are seeing clear signs that both Denmark and Finland will grow strongly in the future and contribute even more to strengthening our position in the Nordic region.
Business areas
Business areas
in the e-commerce segment rose by 40 per cent, which represents growth that is stronger than it has been for several years and that is clearly above the general market trend. 2013 looks as though it could see similar growth. Invoicing and part-payment services on our own account PayEx has historically focused primarily on offering a comprehensive range of payment solutions in which our partner companies act as issuers and acquirers. During the year, investments were made to enable us to offer invoicing and partpayment services to our merchants on our own account. The services are being launched in early 2013 and are expected to contribute greatly to PayEx's growth. A comprehensive Nordic payment terminal solution In recent years, PayEx has invested in a joint Nordic solution for card payments in stores. The platform creates a unique opportunity for customers with needs in several Nordic countries to use one provider, one type of terminal and one cash register integration system. The last piece of the puzzle fell into place through the acquisition of the Norwegian company Mynt Betalingsterminaler AS, which provides us with distribution rights for Ingenico terminals in the Nordic market. This gives us full control over the entire chain and all its constituent components. It creates a strong foundation for challenging the established operators in the field.
PayEx Holding AB Annual Report 2012
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Business areas Mobile – leading the way with solutions for payments via mobile.
Mobile payments became a separate business area within PayEx in 2012. It is a sign of how important we consider this area to be. With our mobile payment platform, our customers can be the first to experience the development when the mobile phone replaces the wallet. We have complete solutions for payments via mobile: in-store, on-line, using payment machines and on mobile websites and using mobile applications. During the year we have further developed our platform for mobile payments and have delivered a mobile payment service to WyWallet. Further development of platforms for mobile payments At PayEx, we have developed our platform for mobile payments – mPayment solution – in 2012. Our mobile payment platform means that we supply the technical solution and the customer fills it with its contents. The relationship with the end customer is seen to be strengthened through the customer's brand. The mPayment solution consists of a component that manages customer data and associated mobile phone numbers and an account structure that is able to manage a range of different account types, such as so-called PrePaid accounts, credit accounts and accounts that automatically transfer
purchases to external systems, such as a mobile operator's ordinary mobile phone bill. (See the fact box alongside.) In addition to this, it also includes services from other business areas within PayEx, such as invoice processing from the Invoicers business area for purchases on a credit account. A number of thirdparty services have also been integrated into the mPayment solution, including services to verify the user's identity. Successful development of WyWallet During the year, the Mobile business area also delivered a mobile payment service to WyWallet – the mobile wallet jointly owned by Telia, Tele2, Telenor and HI3G – and thereby reached 97 per cent of all Swedish mobile phone users. Bright future prospects Mobile payments is an area with very good future prospects. Most market analysts agree that payments via mobile phone will become increasingly common in the coming years and PayEx is well equipped to meet demand in this growing market.
Payments can be made via mobile phone in different ways: PrePaid is the most similar to an ordinary wallet. The customer tops up his or her account with a certain amount that is then available for shopping. CreditAccount means that the customer is invoiced for his or her purchase subsequently, like a credit card purchase. Proxy Payment means that an external account is linked to the mobile wallet. The expenditure can then, for example, be drawn from a normal debit card or can be included in the bill from the mobile phone operator.
Stand-alone payment terminals 10
PayEx Holding AB Annual Report 2012
Business areas
Business areas
PayEx Holding AB Annual Report 2012
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Sustainability through long-term relationships, reduced environmental impact and conservation of the Visby world heritage site As far as we at PayEx are concerned, sustainability means both sustainable and long-term business relationships and protecting the environment, society and the people around us. We have taken several steps to reduce our use of resources. We also see it as our responsibility to preserve our historic properties in central Visby that are included on the UNESCO world heritage list.
a cloud service that will mean a reduction in our paper usage of up to 30 per cent in the long term. Recycling is second nature to us at PayEx and all IT materials we no longer use are sent to a supplier that recycles as much as possible.
Long-term ownership and long-term business relationships The PayEx Group was founded by Max Hansson in 1972, and he is still the sole owner. We have driven development in our industry for over 40 years and are one of the Nordic region's foremost experts on payments, with comprehensive and unsurpassed expertise in all forms of payment solutions. Max's long-term independent ownership creates opportunities for us to adopt a longterm perspective and offer services that lead to lasting partnerships.
Preserve world heritage Over the years, PayEx has acquired a number of properties in central Visby that have been included on the UNESCO world heritage list since 1995. A couple of PayEx's properties date from the 1200s and we have carefully renovated these properties with the aim of preserving them as part of the world heritage. The older properties are tended to with great care and there are employees in the group whose focus is to preserve and take care of the properties to preserve them as cultural heritage for the future.
PayEx Holding AB Annual Report 2012
PayEx are experts in payments and, with approximately 500 employees in four countries, we must grow with our customers. Unique employees with unique skills are required in order to make this possible.
There are a lot of us and we have a great deal of ability, but we can be even better! Our employees are our most important resource and taking care of that resource is one way of preserving our equity. The challenge of becoming successful is to be able to attract, develop and retain the right employees with the necessary skills – both now and in the future. It is one of the most important issues at PayEx and it influences everything we do. Activities in 2012 HR activities in 2012 can be summarised as organisational development for greater customer focus. During the year PayEx has: • Medarbetarportalen [Employee Portal] and Chefsportalen [Manager Portal). Annual employee survey In 2012, PayEx conducted a group-wide employee survey in which the employees were able to provide feedback on their work situation and their working environment and contribute ideas on how the company can improve to become the best workplace. In addition to this survey, we take smaller measurements each year to provide the business with faster feedback on the action plans produced in conjunction with the employee survey. The results of the employee survey in 2012 provide a measurable starting position for our further improvement.
Printing and transportation taking the environment into consideration PayEx always endeavours to select the most environmentally-friendly option when we purchase goods and services. We engage only responsible printing and transportation companies. Our main printing partner, Strålfors, is working actively to promote sustainable development. To reduce the load on the environment, we endeavour to send digital invoices and also encourage our suppliers to do the same. Together with our customers, we offer consumers digitised solutions and encourage the use of digital mailboxes such as Digipost and Netposti. To reduce our electricity consumption, we are working to virtualise our operating environment, which will lead to lower electricity consumption. A project to replace all our lighting with LEDs was also started up in 2012. In 2013, PayEx will become part of Smart Grid Gotland along with GEAB and Vattenfall. This is a development project that aims to integrate large quantities of energy from renewable sources into the network. The project began in 2012 and is expected to continue until 2015. We have also invested in a functional solution for office printers, which means that users must enter a PIN when printing. The solution is
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We protect our most important resource – our employees
Employee strategy for achieving business objectives Our employee strategy is based on the priorities that we consider essential to enable us to deliver our business objectives. We have identified the following key areas. • To develop management by objectives in the organisation. By establishing quantitative and qualitative targets in line with our business strategy, we ensure that all levels of the organisation deliver satisfactory results. The PayEx board of directors is responsible for
Sustainability
Employees
establishing our strategic business objectives at an overall level and for measuring results on the basis of them. The PayEx group management is responsible for ensuring that the overall objectives are broken down for the managers. • To invest in the development of managers. The managers at PayEx are responsible for working with their teams to establish objectives at team and individual level. They also ensure that our employees understand what contribution they can make to overall business objectives. It is therefore important for our leaders to have the opportunity to drive good performance forward. • To build up skills It is important for us to carry on continuous, systematic skills development and skills transfer. Our employees' need for skills development is defined primarily in performance management interviews and the target plans drawn up in those interviews. The target plans are continually corrected as necessary. Skills development can be carried on in many different ways with external or internal initiatives. • To create structure around roles, responsibilities and compensation and clarify career paths. Role descriptions create clearer career paths and are a tool allowing PayEx to ensure that the skills for each role are maintained and that the employee in each role has the skills required for the role or a target plan for obtaining the required skills.
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Board of directors and management
Jonas Lagerstedt Chairman of the Board Grew up on Gotland from the age of 5 and moved to Stockholm in 1988 to study at the Royal Institute of Technology (KTH). Worked for 16 years at Boston Consulting Group, where his duties included heading banking and finance operations in the Nordic area. After leaving BCG, Jonas started as an independent consultant and in 2011 he was also on the board of MQ. In 2011, Jonas took over the role of MD at PayEx, and then in October 2012 switched to the role of Chairman of the Board. Motto: “ Nothing is impossible - just do it”
Max Hansson Director/Owner
Carl-Johan Ahlström Director
The Gotland Islander who took over his father’s auction firm. Started Faktab in 1972 to manage and streamline the monotonous paperwork of his customers at that time. The company has expanded and Max is today the owner of the Nordic region’s only comprehensive group of companies in payments. Along the way, Faktab changed its name to PayEx and now has 500 employees in four countries. Motto: “Nothing is so good that it can’t be improved”
Grew up in Paris, studied economics and marketing in Geneva until 1990. Founded X-change in Sweden 1990 and was CEO until 1998. Today Executive Chairman of Vixar AB, a company that invests in small and mediumsized companies. Other than the PayEx Group, also sits on the boards of: Teqnion AB, Cedergruppen AB, AB Alphace Coaching & Education AB, Eco2 Energy AB and Tripod Energy AB. Motto: "There are no short cuts – the only thing that works is hard work." Top row from the left:
Bottom row from the left:
Louise Gauffin
Jenny Hellberg Hassel
Head of Communications and marketing Head of Operations
Nicklas Molin
Raymond Klavestad
Business Area Manager Merchants
CEO
Anders Karlsson
Jörgen Pettersson
Head of Legal Department
Head of Credit and Collection (Head of Customer Service from March 2013)
Jonas Lagerstedt Chairman of the Board
Lars Stenberg Director Bachelor of Law and BA at Lund University 1972. Started at the Lindahl law firm in 1978, where he was a solicitor and later a partner until 2008. Has run his own law firm since 2009. Directorships in addition to the PayEx group: Aktiebolaget Amerix, H. Lundén Holding AB, Holbein Holdings AB, Sardis Securities Inc. Istanbul, TR Fastenings AB and uno form i Stockholm AB. Motto: "It is always too early to give up!"
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PayEx Holding AB Annual Report 2012
Therese Westerlund Employee Representative
Remcia Bulut Employee Representative
Mikael Hellberg
Grew up in Stockholm and moved to Gotland in 1996 to undertake film studies until 1999. She joined PayEx in 2000 and currently works as a Process Manager for PayEx debitering. Motto: "Enthusiasm finds opportunities and energy makes sure that you can make the most of them." Therese Westerlund was replaced by Marie Lydahl on 11 April 2013.
Previously worked as a salesperson at an agency working for Eniro. Is currently quality administrator for Mobile, Merchant and POS in First Line Support. Motto: "Finds his inner palace in the gym."
Niklas Levin
Mikael Wandt CFO (November 2012)
Therese Johansson Head of HR
Acting Business Area Manager Mobile
Business Area Manager Invoicers
Lars Marlow Krosby Head of IT
Board of directors and management
Board of directors and management
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Administration Report General information on the company's activities PayEx Holding AB, organisation registration number 556714-2798, was founded in the first quarter of 2007. The company is the parent company of the PayEx group, which operates in five main areas in Sweden, Norway, Denmark and Finland. PayEx began operating in 1972 under the name Faktab Finans AB. The founder of that company, Max Hansson, is still the sole owner of the group.
Invoicing and sales ledger service PayEx is a complete provider of services for managing time-consuming, cost-generating work in finance and administration. The services include processing of supporting documents for invoices, invoicing/billing, sales ledger services and payment monitoring. The customer system PayEx Online allows the customer to gain a complete overview and control of business-critical processes. Customers are offered simpler, more secure and more cost-effective solutions that free up capital and capacity. PayEx handles customers' payment processes so that customers can focus on their core business.
Debt Collection Services PayEx is a leading provider of debt collection services. PayEx is expert at reducing credit time and limiting losses from outstanding debts. Services include reminder procedures, monitoring of debtors' financial situation, debt collection, purchase of debts, management of mismanaged loans and credits. PayEx has highly qualified employees who monitor customers' outstanding debts in a systematic, professional manner.
Electronic payments on-line and instore PayEx is a complete provider of electronic payment services for on-line commerce, mobile commerce and trading of goods in the Nordic market. In the European market, we cooperate with leading suppliers to enable us to deliver payment services to customers in the Nordic region who wish to make or receive payments outside the Nordic region. We assist companies with integration and development of userfriendly payment solutions for small amounts, large one-time purchases, tailor-made solutions and adaptation of existing standard solutions to the customers' needs. In cooperation with our larger customers and partners, we also develop unique solutions for industries such as retail, transport, hotels and restaurants, on-line commerce, telecommunications, media, fuel, universities, etc.
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PayEx Holding AB Annual Report 2012
Board of directors and management
Administration Report
Financing PayEx Credit AB is an authorised credit market company which is regulated by Finansinspektionen [the Swedish Financial Supervisory Authority] and provides all the group’s financial services. Examples of services provided include invoice discounting, factoring, contract credit and purchase of debt collection cases.
Organisation PayEx carries on its business as an organisation consisting of three business areas (BA) and three product/production units. The business areas are responsible for sales of all the group’s products and services to a particular customer segment. The various business areas are also responsible for management and development of products in each area. Business is conducted in Sweden, Norway, Denmark and Finland. BA Merchants BA Merchants has full responsibility for existing and new customers in the retail segment. It sells and delivers the group’s full range of products and services to these customers. BA Invoicers BA Invoicers has full responsibility for existing and new customers for businesses that use the PayEx invoicing service. It sells and delivers the group’s full range of products and services to these customers. BA Mobile BA Mobile is responsible for working closely with our customers to develop and implement innovative and high-tech solutions. PayEx must be at the leading-edge as far as development is concerned. Credit and Collection product area Credit and Collection is responsible for products and services and much of the operational work within our business for debt collection and financing. PayEx Credit AB lies entirely within the unit. Management of the areas of credit assessment, risk management, liquidity and capital adequacy forms an important part of the business activities carried on a PayEx Credit AB. PayEx Credit AB is responsible for our products and services in financing (including deposits). Operations Unit PayEx Operations consists of over 200 employees who manage the entire customer process. This includes all administrative services such as hardware and software, paper and envelopes, payment registration, sales ledger management, statistics, process development and training. The work includes processing invoice support documentation, invoicing/billing, sales ledger management and payment monitoring
and customer services for our own customers and our customers' customers. The unit is also responsible for ongoing customer relationships in day-to-day work and for starting up new customers. IT Unit IT consists of over 100 employees who are engaged in the development and operation of IT systems on our behalf and on behalf of our customers. The unit also assists with advanced support issues for customers and our own employees. PayEx Invest Manages the group's stock of properties. All properties are located in the medieval inner city centre of Visby. Holdings of shares in companies that are not included in any of the other business areas are owned by PayEx Invest.
Results The group's profit before tax and minority shareholding amounted to 45,620 TSEK (–11,491 TSEK). The loss last year was a result of impairments and non-recurring loan losses. The parent company's operating loss amounted to –25,437 TSEK (–16,884 TSEK).
Significant events during the financial year The following changes in company names occurred during the financial year: PayEx Finance AB changed its name to PayEx Sverige AB. PayEx AS changed its name to PayEx Norge AS. PayEx OY changed its name to PayEx Suomi OY. PayEx A/S changed its name to PayEx Danmark A/S. The Norwegian company Mynt Betalingsterminaler AS was acquired in July 2012. This strengthens the group's position in the Nordic market for payment terminals. In September 2012, a share dividend was distributed to PayEx Holding AB from PayEx Solutions AS. All shares in PayEx Solutions AB were distributed. Two mergers were carried out in December 2012: PayEx Solutions AS, Mynt Betalings-terminaler AS and PayEx Esol AS were merged with PayEx Norge AS. PayEx Solutions AB was merged with PayEx Sverige AB. At the same time, a transfer of assets and liabilities was carried out from PayEx Collection AB to PayEx Sverige AB. PayEx Holding AB made a capital contribution of 12 MSEK to PayEx Danmark A/S. During the financial year, a wholly-owned property company, Faktab K8 AB, was sold off.
Significant events after the end of the financial year After the end of the financial year, two whollyowned property companies, Faktab H1 AB and Faktab H2 AB, were sold off. PayEx Holding AB Annual Report 2012
17
Multi-year overview
Financial reports
Consolidated income statement Overview of group
2012
Net sales (TSEK) Profit before tax and minority shareholding (TSEK) Balance sheet total (TSEK)
2011
2010
2009
2008
669,7371)
671,300
653,503
606,928
583,044
45,620
-11,491
32,419
44,540
25,135
TSEK Net sales
Note
2012
2011
1
669,737
671,300
Operating expenses
2,022,826
1,538,477
1,037,659
1,294,782
1,086,025
Equity ratio
7%
8%
26%
27%
26%
Other external costs
2, 3
-313,418
-331,256
Average number of employees
491
527
489
489
504
Personnel costs
4
-266,347
-279,281
Depreciation
5
-37,561
-38,483
-617,326
-649,020
52,411
22,280
Overview of parent company
2012
Net sales (TSEK)
2011
2010
2009
2008
18,272
24,987
15,885
14,252
12,973
Profit/loss after net financial income and expenses (TSEK)
-38,919
-18,178
-21,766
-20,371
7,193
Balance sheet total (TSEK)
842,313
884,565
796,190
680,522
718,602
45%
42%
50%
58%
52%
26
24
16
10
10
Equity ratio Average number of employees 1)
For 2012, net sales in the consolidated income statement were affected by the fact that income in a group company compared in a previous year was reclassified to interest income. Without this adjustment, the sales for the year amounted to approximately 690,000 TSEK.
Total Operating profit Profit/loss from financial investments
7
Financial income
28,198
35,451
Financial expenses
-34,989
-69,222
Total
-6,791
-33,771
45,620
-11,491
-8,384
-2,723
-1,611
-706
35,625
-14,920
Profit/loss after financial items Tax on profit/loss for the year Minority shareholding
Future The operations in the group and the parent company will be conducted in line with the changes implemented at the end of 2012. They are expected to have a positive impact on the results in the coming year.
PROFIT/LOSS FOR THE YEAR
8
Proposal for the allocation of profits The following profits are at the disposal of the Annual General Meeting: Share premium reserve profit/loss brought forward profit for the year
300,098,600 44,621,794 699,704 345,420,098
distributed as follows: Dividend to shareholders 10,000,000 carried forward to new accounts*335,420,098 345,420,098 *To the share premium reserve 300,098,600 As far as the company's results and position in general are concerned, reference is made to the following income statements and balance sheets and the associated notes to the accounts.
18
PayEx Holding AB Annual Report 2012
Administration Report
Administration Report
PayEx Holding AB Annual Report 2012
19
Financial reports
Consolidated balance sheet TSEK
Consolidated balance sheet Note
31/12/2012
31/12/2011
TSEK
Assets
Equity and liabilities
Fixed assets
Equity
Intangible fixed assets
9
31/12/2012
31/12/2011
50,000
50,000
12
Restricted equity
Goodwill
43,865
16,566
Share capital (500,000 shares)
Trademarks
31,876
35,432
Restricted reserves
Other intangible fixed assets
63,998
43,214
Total restricted equity
139,739
95,212
Total intangible fixed assets
Note
8,128
15,699
58,128
65,699
Non-restricted equity Tangible fixed assets
10
Land and buildings
105,480
101,426
715
588
Non-restricted reserves
52,975
71,666
Profit/loss for the year
35,625
-14,920
88,600
56,746
146,728
122,445
3,686
2,706
39,035
35,955
Total non-restricted equity
Expenses for improvements to property owned by others Equipment, tools, fixtures and fittings
Total tangible fixed assets
11,835
12,752
118,030
114,766
Total equity Minority shareholding
Financial fixed assets Shares and participating interests
6
6,569
19,376
Shares in associated companies
6
3,458
5,146
2,229
–
Deferred tax receivables Receivables from associate companies Long-term loans receivable
Total financial fixed assets
4,300
–
14,069
13,117
30,625
37,639
288,394
247,617
Provisions Pensions
Liabilities Current liabilities Overdraft facility
Total fixed assets Current assets Stock
17,962
10,407
14
15
86,533
91,306
1,126,790
710,599
Liabilities to credit institutions
73,281
117,917
Accounts payable
39,284
37,748
Deposits from the public
358,137
201,684
Other current liabilities
115,517
173,767
Liabilities to clients/clearing debt
Accrued expenses and deferred income Current receivables Accounts receivable – trade
56,726
89,518
204,693
212,889
8,323
–
Current tax assets
20,685
–
Other receivables
35,577
65,176
Prepaid expenses and accrued income
58,871
46,419
384,875
414,002
Lending to the public Receivables from associate companies
Total current receivables Investments
5,597
–
1,325,997
866,451
Total current assets
1,734,431
1,290,860
TOTAL ASSETS
2,022,826
1,538,477
Cash and bank balances
20
PayEx Holding AB Annual Report 2012
Administration Report
33,835
44,350
Total current liabilities
1,833,377
1,377,372
Total provisions and liabilities
1,872,412
1,413,326
TOTAL EQUITY AND LIABILITIES
2,022,826
1,538,477
152,955 522,588
146,726 425,892
Pledged assets Contingent liabilities
Administration Report
16 17
PayEx Holding AB Annual Report 2012
21
Financial reports
Parent company income statement TSEK Net sales
Parent company balance sheet Note
2012
2011
TSEK
1
18,272
24,987
Assets
140
1
18,412
24,988
Other operating income
1
-1,708
-1,430
Other external costs
1, 2, 3
-20,290
-19,018
Trademarks
Personnel costs
4
-19,222
-18,795
Total intangible fixed assets
Depreciation and impairment of tangible and intangible fixed assets
5
-2,629
-2,629
-25,437
-16,884
Profit/loss from financial investments Profit/loss from participations in group companies
-10,980
Profit/loss from other securities and receivables held as fixed assets
0
0
49
Interest income
7
6,043
9,879
Interest expenses
7
-8,545
-11,222
-38,919
-18,178
Tax on profit/loss for the year
PROFIT FOR THE YEAR
22
PayEx Holding AB Annual Report 2012
8
39,898
17,074
-279
489
700
-615
Administration Report
39,442
42,071
39,442
42,071
Financial fixed assets Participations in group companies
575,965
574,945
Total financial fixed assets
575,965
574,945
Total fixed assets
615,407
617,016
11
Current assets Current receivables Other receivables from group companies Other receivables
Appropriations
31/12/2011
Intangible fixed assets
Accounts receivable – trade
PROFIT/LOSS AFTER FINANCIAL ITEMS
31/12/2012
Fixed assets
Operating expenses
OPERATING PROFIT
Note
Interim receivables
Total current receivables Cash and bank balances
119
4
163,594
208,016
12,288
2
523
2,413
176,524
210,435
50,382
57,114
Total current assets
226,906
267,549
TOTAL ASSETS
842,313
884,565
Administration Report
PayEx Holding AB Annual Report 2012
23
Financial reports
Parent company balance sheet TSEK
Cash flow statement Note
31/12/2012
31/12/2011 TSEK
Equity and liabilities
Group 2012
2011
Parent Company 2012
2011
Current operations Equity
12
Restricted equity Share capital (500,000 shares)
Total restricted equity
50,000
50,000
50,000
50,000
Profit/loss after financial items
45,620
-11,490
-38,919
Adjustments for non-cash flow items, etc.
51,963
40,882
15,013
-18,178 3,527
Tax paid
-11,128
-12,920
-1,255
-6,801
Cash-flow from current activities before changes in working capital
86,455
16,472
-25,161
-21,452
Cash flow from changes in working capital Non-restricted equity Share premium reserve
300,099
300,099
44,622
60,237
700
-615
Total non-restricted equity
345,421
359,721
Total equity
395,421
409,721
352
0
4,540
3,749
Profit/loss brought forward Profit/loss for the year
Untaxed reserves
13
Provisions
14
-6,699
-1,657
–
–
Increase(–)/Decrease(+) in current receivables
16,459
-82,052
69,506
-31,342
Increase(+)/Decrease(–) in current liabilities
Total changes in working capital Cash flow from operations
Investments in subsidiaries
Accounts payable
86,533 3,625
Other liabilities to group companies Current tax liabilities Other liabilities Accrued expenses and deferred income
Total liabilities
2,508
-19,716
82,874
49,790 24,630
51,532 30,080
–
–
-12,000
–
6,150
–
–
Acquisitions/capitalisation of intangible fixed assets
-34,243
-29,325
–
–
Acquisitions of tangible fixed assets
-17,630
-25,597
–
–
–
8,837
–
–
-13,743
-14,280
–
–
Sales of financial fixed assets
2,671
–
–
–
Withdrawal from associate companies
4,000
–
–
–
947
–
–
–
-46,838
-54,216
-12,000
–
Change in short-term investments
348,750
372,042
0
976
825
2,002
Financing activities
2,267
2,672
Increase/decrease in current financial liabilities
-54,168
–
-4,362
–
Dividends paid to shareholders
-15,000
-15,000
-15,000
-15,000
442,000
TOTAL EQUITY AND LIABILITIES
90,895
524,866
441,157 457,629
11,160
Sales of subsidiaries
Acquisitions of financial assets 15
479,709
489,469 575,924
Investments
Sales of tangible fixed assets
Liabilities Overdraft facility
Increase(–)/Decrease(+) in inventories
842,313
471,095 884,565
Pledged assets
16
None
None
Contingent liabilities
17
781
100,719
Cash-flow from investments
Dividend to minority shareholding
Cash flow from financing activities Cash flow for the year Cash and cash equivalents at beginning of year Translation difference in cash and cash equivalents Cash and cash equivalents at end of year
-631
–
–
–
-69,799 459,287 866,451 259 1,325,997
-15,000 388,413 478,038 – 866,451
-19,362 -6,732 57,114 – 50,382
-15,000 15,080 42,034 – 57,114
Supplementary information to the cash flow statement TSEK
Group 2012
2011
Parent Company 2012
2011
Interest paid and dividends received Interest received Interest paid
39,044
33,278
10,702
9,879
-30,835
-20,707
-12,591
-11,222
37,561
38,484
2,629
2,629
–
-1,262
–
–
20,725
–
12,000
–
3,080
5,329
791
898 –
Adjustments for non-cash flow items Depreciation on fixed assets Reversed impairments Impairments on financial assets Provisions for pensions Capital gain on sale of subsidiary company
-11,307
–
–
Change in accrued interest
5,372
–
–
–
Unrealised loan losses
2,397
–
–
–
Share of profit/loss in associated companies
-2,312
–
–
–
Capital gain from sale of financial fixed assets
-2,112
–
–
–
Other profit/loss items not affecting liquidity
24
PayEx Holding AB Annual Report 2012
Administration Report
Administration Report
-1,441
-1,669
-407
–
51,963
40,894
15,013
3,527
PayEx Holding AB Annual Report 2012
25
Accounting principles General The financial statements have been prepared in accordance with the Swedish Annual Accounts Act and Bokföringsnämnden [Swedish Accounting Standards Board] general guidelines in addition to BFNAR [Bokföringsnämndens allmänna råd – General Guidelines of the Swedish Accounting Standards Board] 2008:1 Financial statements in smaller limited companies (the K2 rules). In cases where there is no general recommendation from the Swedish Financial Accounting Standards Board, guidance is obtained from Redovisningsrådet [the Swedish Financial Accounting Standards Council] recommendations. The consolidated accounts were prepared using the acquisition method. This means that a subsidiary's assets and liabilities are recognized at the market value that formed the basis for determining the purchase price of the shares. The difference between the purchase price and the equity of the acquired company is recognized as goodwill. The consolidated shareholders' equity includes the parent company's equity and the portion of the subsidiary's equity that arose after the acquisition of these companies. Income and expenses have been allocated to a particular period in accordance with generally accepted accounting principles. Receivables have been recognized at the amount estimated to be received. Receivables and liabilities in foreign currency were converted at the rate at the balance sheet date. Exchange differences on operating receivables and liabilities are reported net in operating income, whereas exchange differences on financial assets and liabilities are reported net as financial items. Clearing funds are recognized at their full value in the balance sheet under current liabilities. "Clearing funds" means funds paid in that have not yet been reported to the customer at the balance sheet date. For the ITP [Industrins och handelns tilläggspension – supplementary pension for employees in industry and commerce] plan, the Pensionsregistreringsinstitutet [Pension Registration Institute (PRI)] calculates what provisions must be made. Pension obligations are reported as a provision in the balance sheet, to the extent permitted by the Swedish Pension Obligations Vesting Act, under the heading "Provisions for pensions and similar obligations". A provision is reported in the balance sheet when the company has a legal or constructive commitment as a result of a past event for which it is probable that an outflow of resources is required to settle the obligation and a reliable estimate of the amount can be made. Other provisions, assets and liabilities have been recognized at cost, unless otherwise stated.
Fixed assets Fixed assets are valued at cost, with a deduction for accumulated depreciation. Depreciation is 26
PayEx Holding AB Annual Report 2012
Notes
carried out according to a systematic plan over the assets' anticipated useful life as listed below: Trademarks Goodwill Capitalised development costs Condominiums Equipment, tools and vehicles Building equipment Art Computers Properties Land Ground installations
20 years 5-10 years 3 years None 5 years 10 years None 3 years 50 years None 20 years
The PayEx trademark has been valued by external valuers. The subsidiaries pay remuneration in the form of a royalty to the parent company based on a percentage of their external sales. The royalty is calculated to be payable for at least 20 years and therefore the depreciation period on the trademark is set at 20 years. Depreciation of goodwill takes place over 5–10 years from the year it occurred. This is based on the fact that the assets are regarded as longterm strategic investments in new countries and business areas. The item is mainly attributable to Solutionsgruppen, whose operations are experiencing continued growth.
Parent company The parent company applies the same accounting principles as the group, with the exception that the parent company does not record a tax asset on a loss and that the parent company has adapted to K3 and reported a group contribution in the income statement.
Tax The company and the group apply the Bokföringsnämnden [Swedish Accounting Standards Board] general guidelines on entry of income taxes, BFNAR 2001:1. Total tax consists of current tax and deferred tax. Taxes are reported in the income statement except when the underlying transaction is entered directly against equity whereupon the associated tax effect is entered in equity. Current tax (previously referred to as paid tax) is tax to be paid or received for the current year. Adjustment of current tax relating to previous periods is also included in this item. Deferred tax is estimated in accordance with the balance sheet method on the basis of temporary differences between the book value and the value for tax purposes of assets and liabilities. The amounts are calculated based on how the temporary differences are expected to be settled and applying tax rates and tax rules decided on or notified at the balance sheet date. Temporary differences are not taken into consideration either in group goodwill or in differences relating to participations in subsidiary and associated companies which are not expected to be taxed in the foresee-
able future. In juridical persons, reporting of untaxed reserves includes the deferred tax liability. However, in the consolidated accounts, untaxed reserves are divided into deferred tax liability and equity. Deferred tax receivables relating to deductible temporary differences and deductible deficiency are reported only if it is likely that they will lead to lower tax payments in future.
Income
All figures in TSEK unless otherwise indicated.
Note 1
Note 4
Purchases and sales between group companies
Of the purchases for the year in the parent company, 3,324 (6,410) relates to purchases from other group companies. Of the sales for the year in the parent company, 18,248 (24,673) relates to sales to other group companies.
Income is reported in accordance with BFNAR 2003:3 Income. The company reports as income the true value of what was received or what will be received. The company therefore reports income at its nominal value (invoice amount). Deductions are made for any discounts given. The income from the company’s sales of services is reported as income when the following conditions are met: the income can be measured reliably, it is probable that the economic benefits that the company will derive from the transaction will flow to the company and the costs incurred or expected to be incurred as a result of the transaction can be measured reliably. Other income is reported as follows. Income that does not relate to core business is included in this item in the period to which it relates.
Sales per business segment
Notes to the financial statements
The leasing expenses for the year in the parent company amount to 0 TSEK (0). The leasing expenses for the year in the group amount to 0 TSEK (0).
The group’s research costs are entered as an expense in the period they occur. Research costs means expenditure on research aimed at obtaining new scientific or technical knowledge. Development expenses means expenses where the results of research or other knowledge are applied in order to bring about new or improved products or processes. In the balance sheet, development expenses are included at cost minus accumulated depreciation and impairment. Additional expenses for an intangible assets are added to the acquisition cost only when they increase the future economic benefits in excess of the original assessment and the expenses can be measured reliably. All other expenses are entered as expenses when they are incurred.
Cash flow statement The cash flow statements are prepared using the indirect method. The stated cash flow includes only transactions that involve payments in or out. With the exception of cash and bank holdings, liquid funds are classified as short-term financial investments that are exposed only to an insignificant risk of fluctuations in value and – are traded on an open market at known prices or – have a remaining duration of less than three months from the moment of acquisition.
Administration Report
Group 2012
2011
Sales Invoicers
413,752
445,741
Sales Merchants
190,513
187,947
23,346
8,090
Business segment
Sales Mobile Other sales
42,126
29,522
669,737
671,300
Comparative figures for 2011 have been translated based on new classifications of types of income introduced by the group from 2012 onwards. The composition of sub-items therefore deviates from those presented in the income statements for 2011.
Note 2
Employees and personnel expenses 2012
Average number of employees
Number
Parent Company
Number
Of which men
26
27%
24
63%
Subsidiaries
465
53%
503
48%
Total group
491
51%
527
48%
Gender distribution on boards of directors and in company management
Parent company Board of Directors
6
67%
3
100%
Other senior executives including the CEO
2
100%
1
100%
6
67%
3
100%
12
75%
10
70%
Total group Board of Directors Other senior executives including the CEO
Group 2012
Parent Company 2011
2012
2011
Salaries and other remuneration: Board of Directors and CEO
Leasing agreements
2011 Of which men
2,399
3,428
1,571
3,428
189,736
197,392
11,123
10,006
192,135
200,820
12,694
13,434
Other employees
Social security expenses: Pension costs
Note 3
Board of Directors & CEO
Fees and reimbursement of expenses
Auditing work means assessment of the annual accounts and accounting records and the management by the board of directors and the CEO, other work incumbent on the company's auditors and advice or other assistance deriving from observation during that assessment or performance of that other work. Everything else is classified as other work. Group
Parent Company
2012
2011
2012
2011
KPMG Auditing work
2,669
3,409
409
590
Other audit assignments
309
197
279
150
Tax consultancy services
185
89
0
0
1,940
113
550
0
5,104
3,808
1,238
740
Other services
Total
66
-946
66
-946
Other employees
14,430
15,637
1,457
1,319
Other social security expenses
49,333
51,113
4,180
4,463
255,964
266,625
18,397
18,270
Total salaries and remuneration and social security expenses
Pension costs for the year for the parent company include endowment insurance entered as an expense at 263 TSEK (547). A correction was made in 2011 for the pension costs for the Board of Directors and the CEO paid in for the previous year.
Note 5
Depreciation
Depreciation according to plan Group 2011
2012
Goodwill
7,344
4,793
–
–
Trademarks
2,445
2,460
2,629
2,629
21,815
24,972
–
–
1,559
1,437
–
–
Other intangible assets Buildings Expenses for improvements to leased property Stock and equipment
Subtotal depreciation according to plan
Notes
Parent Company
2012
2011
228
46
4,172
4,775
–
–
37,561
38,483
2,629
2,629
PayEx Holding AB Annual Report 2012
27
Notes Note 6
Note 7
Shares and participating interests
Note 9
Profit/loss from financial income and expenses
Note 10
Intangible fixed assets
Goodwill Group Opening balances Acquisitions Disposals Translation difference
Closing balance
2012
2011
19,376
16,681
1,790
2,758
-14,597
–
–
-63
6,569
19,376
Participations in associate companies Information on associate companies' organisation registration numbers and headquarters. Associate company
Org. reg. no.
Headquarters
Equity
Result
2012
Interest income group receivables Dividend group companies Profit/loss from other securities and receivables held as fixed assets Other financial income
556708-0311
Stockholm
ValueCodes AS
895 772 852
Oslo
6,914
4,623
neg
neg
PayEx Invest AB owns 50% of Convenient Card i Sverige AB. Capital participations
Voting right participations
Number of shares
Book value 2011
Book value 2012
Convenient Card i Sverige AB
50%
50%
2,000
2,550
1,050
ValueCodes AS
49%
49%
2,450
–
–
2,550
1,050
Total
2011
32,181
33,278
7,910
7,903
–
–
–
–
–
1,048
–
–
Interest expenses from group liabilities Profit/loss from other securities and receivables held as fixed assets
2011
Opening acquisition cost
43,833
49,496
Acquisition cost for the year
31,626
–
–
-5,663
4,979
–
Closing accumulated acquisition cost
80,438
43,833
Closing accumulated acquisition cost
Opening depreciation
-27,267
-22,477
Opening depreciation
-7,344
-4,793
–
1,484
Translation difference
Depreciation for the year -4,994
2,173
–
49
1
–
-1,867
928
-29,344
-20,707
-8,538
-8,333
–
–
-8
-2,701
Sold off for the year Translation difference
Closing accumulated depreciation Translation difference Closing residual value according to plan
–
-7,869
–
Closing accumulated acquisition cost
46,593
47,389
52,589
52,589
Opening depreciation
-11,957
-9,497
-10,518
-7,888
Opening depreciation
-2,445
-2,460
-2,629
-2,629
Depreciation for the year
-315
–
–
–
–
1
-188
-6,791
-33,771
-2,502
-1,294
Translation difference
3,461
Repaid shareholders' contribution
-1,500
–
Current tax cost
Dividend
-2,500
–
Deferred tax
Closing balance
3,458
5,146
Total tax on the profit/loss for the year
Closing accumulated depreciation
-14,717
-11,957
-13,147
-10,518
Closing residual value according to plan
31,876
35,432
39,442
42,071
Parent Company
2012
2011
2012
2011
-7,552
-11,912
-279
489
-831
9,189
–
–
-8,384
-2,723
-279
489
–
-1,559
-1,437
555
–
-7,328 – 105,480
-6,432 176 101,426
2011
Opening acquisition cost
634
–
Acquisition cost for the year
354
634
Closing accumulated acquisition cost
Translation difference
Closing accumulated depreciation Closing residual value according to plan
5
–
993
634
-46
–
-228
-46
-3
–
-277 715
-46 588
Equipment, tools, fixtures and fittings Group
Other intangible assets* Group Opening acquisition cost
Profit/loss and equity has not been determined for ValueCodes for 2012, though it is known that the company will have negative equity at the closing of the annual accounts.
-4,995
108
2012
Translation difference
Depreciation for the year
2,312
-6,432
Group
–
-1,034
Share of profit/loss
Parent Company
–
Translation difference
Group
Closing accumulated depreciation Translation difference Closing residual value according to plan
–
–
107,682
Translation difference
-796
–
–
112,807
Depreciation for the year
52,589
–
-287
Sold/scrapped
52,589
–
1,685
-7,487
Translation difference
47,389
-7,575
2011
19,424
-8,850
47,389
-33,071
5,146
14,262
Sold/scrapped
2011
–
Tax on profit/loss for the year
Acquisition cost for the year
2012
183
2012
-1,481
16,566
95,745
2011
-4,794
Opening balances
–
43,865
2011
107,682
Opening acquisition cost
2012
Exchange rate losses
Note 8
–
-25,786
2012
Expenses for improvements to property owned by others Group
Loan losses/earnings
Total net financial income and expenses
-1,960
-36,572
Trademarks
Opening acquisition cost
Other financial expenses
Group
2012
Sold off for the year
Expenses Interest expenses
Convenient Card i Sverige AB
2012
Group
Income Interest income
Land and buildings
Parent Company 2011
Tangible fixed assets
Acquisition cost for the year Sold off/scrapped for the year Translation difference
Closing accumulated acquisition cost
2012
2011
133,963
114,685
37,938
29,325
–
-10,047
782
–
172,683
133,963
Opening depreciation
-86,434
-70,807
Depreciation for the year
-21,815
-24,972
Sold off/scrapped for the year Translation difference
Closing accumulated depreciation
–
9,345
-435
–
-108,684
-86,434
Opening acquisition cost Acquisition cost for the year Sold off for the year Impairment/scrapping for the year Translation difference Reclassification
Closing residual value according to plan
–
-4,315
63,998
43,214
2011
43,475
50,807
3,014
5,537
–
-474
-293
-12,395
66
–
34,119
–
Closing accumulated acquisition cost
80,381
43,475
Opening depreciation
-30,584
-37,317
Depreciation for the year Impairment/scrapping for the year Translation difference Reclassification
Translation difference
2012
Closing accumulated depreciation Translation difference
Closing residual value according to plan
-4,172
-4,775
295
11,508
35
–
-34,119
–
-68,545
-30,584
–
-139
11,835
12,752
*Other intangible assets consist of capitalised development costs, see the more detailed explanation under Accounting Principles and Notes to the Financial Statements.
28
PayEx Holding AB Annual Report 2012
Notes
Notes
PayEx Holding AB Annual Report 2012
29
Notes Note 11
Note 12
Participations in group companies
Equity
Group Voting right participaCapital participations tions
Number of shares
Book value 2011
Book value 2012
PayEx Invest AB
100%
100%
1,000
2,650
2,650
PayEx Credit AB
100%
100%
500,000
80,000
80,000
PayEx Sverige AB
100%
100%
500,000
349,999
351,019
PayEx Solutions AS
100%
100%
0
109,296
0
PayEx Norge AS
100%
PayEx Suomi Oy
100%
100%
100%
Total Information on subsidiary companies' organisation registration numbers and headquarters Org. reg. no. Headquarters
100
33,000
10,000
142,296
0
0
574,945
575,965
Amount at the start of the year
Equity
Restricted reserves
50,000
15,699
Profit Brought Forward
Profit/loss for the Year
Total
71,666
-14,920
122,445
-14,920
14,920
Transfer of profit/loss for the previous year Adjustment for previous year
-191
Dividend
-1,283
-15,000
-15,000
-1,292
6,231
4,939
Change in share of equity in untaxed reserves
2,897
-2,896
1
Transfer between restricted and non-restricted equity
-8,985
8,985
Translation difference
0
Profit/loss for the year
Equity
Result
Amount at the end of the year
556677-4781
Stockholm
381
-6,447
– Faktab H1 AB
556720-4846
Stockholm
107
4
– Faktab B1 AB
556720-4853
Stockholm
210
1,065
– Faktab B5 AB
556720-4895
Stockholm
101
-1
– Faktab Börsen 2 AB
556720-4887
Stockholm
458
361
– Faktab H2 AB
556720-4820
Stockholm
111
11
Dividend
– Faktab K1 AB
556720-4804
Stockholm
450
19
Profit/loss for the year
– Faktab S1 AB
556720-4903
Stockholm
147
-20
– Faktab V1 AB
556720-4796
Stockholm
198
1,222
PayEx Credit AB
556735-5671
Stockholm
98,478
4,455
PayEx Sverige AB
556174-3914
Stockholm
140,669
26,316
– PayEx Solutions Oy
188 25 69-2
Helsinki
-129
-26
979315503
Oslo
114,035
16,229
– PayEx Collection AB
556677-4799
Stockholm
2,354
4,228
– PayEx Danmark A/S
70986914
Copenhagen
8,253
6,215
– Oslo Kodebyrå AS
886219032
Oslo
10,424
4,524
– PayEx Retail AS
967057983
Oslo
PayEx Suomi Oy
215 68 11-3
Helsinki
27,459
9,791
-13,965
-3,724
35,625
35,625
50,000
8,128
52,975
35,625
146,728
Equity
Share premium reserve
Profit brought forward
Profit/loss for the year
Total
50,000
300,099
60,237
-615
409,721
-615
615
Parent Company
PayEx Invest AB
PayEx Norge AS
Amount at the start of the year Transfer of profit/loss for the previous year
Note 13
50,000
300,099
Note 16
Untaxed reserves
-15,000
44,622
Tax allocation reserves
352
0
0
2012
PRI provisions
63,500
63,500
–
–
Property mortgages
85,975
79,975
–
–
3,480
3,251
–
–
152,955
146,726
–
–
2011
2012
2011
39,035
35,955
4,540
3,749
39,035
35,955
4,540
3,749
Note 17
Contingent liabilities
Group Contingent liabilities Pension guarantee
Overdraft facility
Group Amount granted
Parent Company 2011
2012
2011
105,000
105,000
105,000
105,000
105,000
105,000
105,000
105,000
Overdraft facility utilised at 31/12/2012: 86,533 TSEK
Notes
2011
2012
2011
690
644
91
75
–
–
690
644
Contingent liabilities for the benefit of PayEx Credit AB
–
–
–
100,000
Contingent liabilities for the benefit of PayEx Invest AB
–
–
Unlimited
Unlimited
Contingent liabilities for the benefit of PayEx Sverige AB
–
–
Unlimited
Unlimited
Contingent liabilities for the benefit of Faktab Börsen 2 AB
–
–
Unlimited
Unlimited
Total contingent liabilities
Notes
Parent Company
2012
Contingent liabilities for the benefit of subsidiaries relating to PRI
Unused portions of factoring credits granted
PayEx Holding AB Annual Report 2012
2011
Parent Company
2012
2012
2012
Floating charges
Total pledged assets Group
Parent Company 2011
For own liabilities to credit institutions
Invoice claims
Provisions
700
395,421
Group
2011
352
700
700
Security given for own liabilities and provisions
Parent Company 2012
Note 15
0
-15,000
Amount at the end of the year
Note 14
30
0
-1,091
521,898
425,248
–
–
522,588
425,892
781
100,719
PayEx Holding AB Annual Report 2012
31
Board signatures and the auditor's signature
This is a translated version of the Annual report. Therefore, the audit report is not signed.
ABCD Auditor’s report To the annual meeting of the shareholders of PayEx Holding AB, corp. id. 556714-2798
Report on the annual accounts and consolidated accounts Stockholm, 29 April 2013
Ma M Maxx Hansson
Carl-Johan nA hlström Ahlström
Lars Stenberg
We have audited the annual accounts and consolidated accounts of PayEx Holding AB for the year 2012. The annual accounts and the consolidated accounts of the company are included in the printed version of this document on pages 17– 32.
In addition to our audit of the annual accounts and consolidated accounts, we have also audited the proposed appropriations of the company’s profit or loss and the administration of the Board of Directors and the Managing Director of PayEx Holding AB for the year 2012.
Responsibilities of the Board of Directors and the Managing Director for the annual accounts and consolidated accounts
Responsibilities of the Board of Directors and the Managing Director
The Board of Directors and the Managing Director are responsible for the preparation and fair presentation of these annual accounts and consolidated accounts in accordance with the Annual Accounts Act, and for such internal control as the Board of Directors and the Managing Director determine is necessary to enable the preparation of annual accounts and consolidated accounts that are free from material misstatement, whether due to fraud or error.
Jonas Jonas Lagerstedt Chairperson
Auditor's responsibility
Raymond Klavestad
Our responsibility is to express an opinion on these annual accounts and consolidated accounts based on our audit. We conducted our audit in accordance with International Standards on Auditing and generally accepted auditing standards in Sweden. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the annual accounts and consolidated accounts are free from material misstatement.
Remcia Bulut
CEO
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the annual accounts and consolidated accounts. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the annual accounts and consolidated accounts, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company’s preparation and fair presentation of the annual accounts and consolidated accounts in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors and the Managing Director, as well as evaluating the overall presentation of the annual accounts and consolidated accounts.
Marie Lydahl
AUDITOR'S SIGNATURE Our auditors' report was issued on 29/04/2013. KPMG AB
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Dan Beitner Authorised Public Accountant
Report on other legal and regulatory requirements
Opinions In our opinion, the annual accounts and consolidated accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of the parent company and the group as of 31 December 2012 and of their financial performance and cash flows for the year then ended in accordance with the Annual Accounts Act. The statutory administration report is consistent with the other parts of the annual accounts and consolidated accounts.
The Board of Directors is responsible for the proposal for appropriations of the company’s profit or loss, and the Board of Directors and the Managing Director are responsible for administration under the Companies Act. Auditor's responsibility Our responsibility is to express an opinion with reasonable assurance on the proposed appropriations of the company’s profit or loss and on the administration based on our audit. We conducted the audit in accordance with generally accepted auditing standards in Sweden. As basis for our opinion on the Board of Directors’ proposed appropriations of the company’s profit or loss, we examined the Board of Directors' reasoned statement and a selection of supporting evidence in order to be able to assess whether the proposal is in accordance with the Companies Act. As basis for our opinion concerning discharge from liability, in addition to our audit of the annual accounts and consolidated accounts, we examined significant decisions, actions taken and circumstances of the company in order to determine whether any member of the Board of Directors or the Managing Director is liable to the company. We also examined whether any member of the Board of Directors or the Managing Director has, in any other way, acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions. Opinions We recommend to the annual meeting of shareholders that the profit be appropriated in accordance with the proposal in the statutory administration report and that the members of the Board of Directors and the Managing Director be discharged from liability for the financial year.
Stockholm 29 April 2013 KPMG AB Dan Beitner Authorized Public Accountant
We therefore recommend that the annual meeting of shareholders adopt the income statement and balance sheet for the parent company and the group.
32
PayEx Holding AB Annual Report 2012
Auditors' Report
Auditors' Report
PayEx Holding AB Annual Report 2012
33
Payment
Invoicing
Financing
Mobile Services
Private
Other
Mobile payment platform
Part-payment Services
Payment Guarantee
Invoices and Ledgers
Integrated payment terminals
Invoices
Ledger Services
Credit Agreements
Stand-alone payment terminals
Part-payment Services
Invoicing Services
Factoring
Part-Payment Services for medicines
Get a loan
E-commerce
Gift cards
WyWallet
Reminder Services
Invoice Discounting
Dental accounts
Save
Shopping cart
Digital value codes
PayPal
Billing
Mobile
Economy department
Payment Gateway
Online card payments
Debt Collection Services
Account
Computer
Call Centre Payment
Payment by direct bank transfer
Cash card
Store
Card payment by phone Arrows
Invoicing package
Factoring
eCommerce Plus
eCommerce Max
Products –Sales ledger service –Reminder service –Debt collection service
Products -Sales ledger service –Reminder service –Debt collection service –Invoice factoring
Products –Online card payments –Invoice –Part-payment –Direct payment via bank –WyWallet –PayPal
Products –Online card payments –Invoice –Part-payment –Direct payment via bank –WyWallet –PayPal –Card payment by phone
Value-added services –Distribution
Subscription Products –Billing –Invoicing service –CMR –Invoice factoring
34
Value-added services –Print –Distribution
eCommerce Basic Products –Online card payments –Invoice
PayEx Holding AB Annual Report 2012
Value-added services –Obtain address –Anti-fraud –Skinning
Value-added services –Obtain address –Anti-fraud –Skinning –Subscription payment
