CEO comment

Strategic choices and implemented measures

We have firmly reorganised the company’s strategy, with new management appointed in 2012. We have steered the company from costly investment in international growth towards a clear focus on our home market and on improving profitability. During the year we have streamlined the operations and defined a strong offering in Connectivity. In line with this, we have implemented several key forward-looking and cost-cutting measures.

Integrated operations – focused offering

Part of Cybercom’s new strategy is to move towards a more integrated operation in order to enhance internal efficiency, to offer clarity externally and to sharpen our offering. Being a recognised niche player in Connectivity makes us stronger in an increasingly competitive market. Clarity is crucial to our future development. We have therefore strengthened our sales management and unified our sales organisation. We have gathered together the group’s expertise with a focus on four business domains: Connected Engineering, Connectivity Management, Digital Solutions and Secure Connectivity.

We have fundamental expertise within these areas and we see a growing market. With more connected devices, mobile phones, machines and people, demand for secure technical solutions continues to expand. By 2020, it is expected that the number of mobile devices will have risen to 50 billion. The digital journey is thus still in its infancy. People’s behaviour is changing rapidly, business is becoming digital and expectations of what is technically possible are becoming ever higher. This is our home territory, the increased interaction between people and organisations, services and systems, in the new need for cooperation, exchange and mobility. Cybercom is correctly positioned for this future; we are playing an important role. Cybercom has a unique position, with strong references from the entire ecosystem surrounding telecom services. Our background and excellence in telecommunications allows us to provide valuable insight to clients in other segments, where our services are now in increasing demand.

Balanced client portfolio

In line with our strategy, we are now realigning our business towards a more balanced client portfolio. We have a fantastic client list, and during the year we continued to strengthen our positions in both the public sector and manufacturing, with the automotive industry and the energy sector becoming increasingly important client industries. In the longer term we want to achieve proportionate distribution of our business between the telecom, industrial and public sectors. Telecom has always been, and will continue to be, an important part of Cybercom’s development, but by achieving a better balance I am convinced that we will obtain a greater return from our expertise while reducing our risk exposure and dependence on any individual sector.

Enhanced efficiency and improved financing

We have also created a more stable financial platform for the company in 2012, through a better suited financing solution and additional capital raised in a rights issue. We have also significantly reduced the company’s cost structure, adapted our resources and discontinued operations that were unprofitable or that were outside our strategic offering.

We have discontinued the operations in Romania, sold the operations in China, reduced the number of offices and removed hierarchical levels. With around 75 percent of our business in Sweden, it is crucial that the Swedish business develops positively. Sweden is the locomotive of our group, and the Swedish organisation has therefore been organised into three strong regions from January 1, 2013, each the same size as our operations in Finland, and all units are now represented in the executive team. The future belongs to companies with short decision paths and fast-moving organisations. This is even more important when changes are being implemented.

I am grateful for the strong support we have received from clients, employees and shareholders.”

A better equipped Cybercom in 2013

I am pleased to report that our new strategy has attracted positive feedback, both internally and externally. I am grateful for the strong support we have received from clients, employees and shareholders. During the year we have expanded our business in the areas and with the clients we regard as strategically important to Cybercom.

Time and again during the year I have seen evidence of the unique expertise and innovation that Cybercom possesses.

I have been proud to be involved with the successful solutions we develop for our clients and the strong CSR commitment shown by our employees. It is incredibly exciting to be part of such an innovative, passionate and trustworthy force. This is the cornerstone of our values, of our mission – Boosting your performance in the Connected World.

I am also grateful for the support we have in our owners, who were with us through an essential rights issue in the autumn. 2012 has been a year of unsatisfactory economic performance, but with a high pace of change internally to create a more efficient Cybercom with a view to delivering our profitability target of a 10 percent operating margin. We are navigating towards that goal, and once we achieve a stable profitability trend we will turn our attention to improved growth. The changes resulting from our strategic choices have been necessary. They have also led to an improvement in value in the form of enhanced sales per employee in the company compared with the previous year.

In the short term, we have to deal with the weak economy that continues to hold sway in 2013. Cybercom is better equipped through the changes we have implemented in the company. We are able to focus on developing our business and, through this, on achieving our objectives.

Niklas Flyborg
President and CEO
Cybercom Group

The changes as a result of our strategic choices have been necessary. They have also led to an improvement in value in the form of enhanced sales per employee.”