BUSINESS ACTIVITIES 2014
SUSTAINABLE VALUE CREATION
IN GROWTH COMPANIES
Contents
BUSINESS ACTIVITIES 2014
2014 – Highlights
ABOUT FOURIERTRANSFORM
2014 – Highlights
Fouriertransform in brief
1
CEO’s comments
2
Portfolio summary
4
Our portfolio companies
5
Case: Pelagicore
9
Mission, vision and objectives
10
Strategic building blocks
11
Market
12
Investment process
14
Employees
16
Expertise, network
18
Sustainability
20
CORPORATE GOVERNANCE
Chairman’s comments
24
Corporate governance
26
Board of Directors
28
FINANCIAL STATEMENTS
NET RESULT 2014
-91
SEK
CASH AND BANK BALANCES AND
INVESTMENTS IN SECURITIES AT YEAR-END
MILLION
SEK
Income statement
31
Cash flow statement
32
Balance sheet
33
Statement of changes in equity
33
TOTAL CASH FLOW 2014
Alelion Batteries
35
SEK
Applied Nano Surfaces
36
of which investments in portfolio companies SEK 399 million
APR Automation
37
ARCCORE
38
CeDe Group
39
Elforest Technologies
40
Inxide
41
Jobro Plåtkomponenter
42
LeanNova Engineering
43
Max Truck
44
Norstel
Osstell
PORTFOLIO COMPANIES
1,850
MILLION
of which net financial items contributed SEK 92 million
TOTAL INVESTMENTS IN 2014
-17
SEK
MILLION
398
MILLION
FOURIERTRANSFORM’S INVESTMENTS
In 2014 Fouriertransform approved investments in five new companies for a total of
SEK 202 million and follow-on investments of SEK 197 million. Since inception in 2009
Fouriertransform has invested a total of SEK 1,366 million in 25 companies in the Swedish
automotive and manufacturing industries.
Company
Investment
phase
Initial
investment
Business
activities
Location
45
ÅAC Microtec
Growth
March 2014
Multifunctional electronic systems (MEMS)
Uppsala
46
Pelly
Growth
March 2014
Storage solutions
Hillerstorp
Pelagicore
47
Osstell
Growth
March 2014
Instruments for measuring dental implant stability Gothenburg
Pelly
48
APR Automation
Growth
Ma y 2014
Supplier of complete automation solutions
Arvika
PowerCell Sweden
49
SMP Parts
Growth
June 2014
Supplier of excavator accessories
Ilsbo
Rototest International
50
SciBase
51
SIGNIFICANT EVENTS AFTER THE END OF THE FINANCIAL YEAR
Smart Eye
52
SMP Parts
53
TitanX
54
In February 2015 ÅF AB (publ), a company listed on NASDAQ Stockholm, acquired all of
the shares in Fouriertransform’s portfolio company LeanNova Engineering in Trollhättan.
Fouriertransform initially invested in the company in January 2012 and the divestment
provided a good return on Fouriertransform’s investment.
Vicura
55
ÅAC Microtec
56
Fouriertransform in brief
BUSINESS ACTIVITIES 2014
Fouriertransform in brief
Fouriertransform AB is a state-owned venture capital
company with a capital of SEK 3 billion that invests in
the Swedish manufacturing industry and associated
services. Fouriertransform’s business activities were
launched in 2009. The company’s mission includes
providing its owner with a market rate of return and
investing along commercial lines.
INVESTMENT PROFILE
SEGMENT
Swedish manufacturing industry
and associated services
INVESTMENT OBJECTS
FOURIERTRANSFORM AS OF DECEMBER 31, 2014
•committed entrepreneurs and
management teams
•operations in Sweden
•innovative products with highly
complex production
•internationalization potential/
robust local market position
•investment in early phases, start-up/
early stage
INVESTMENT PHASES
Start-up
13 employees
Early stage
Stockholm | Gothenburg
Growth
Rescue/Turnaround
INVESTMENT SIZE
around SEK 30–300 million per
early stage investment object
SEK 1,850 m
22 companies
remaining capital
spread throughout
Sweden
SEK 2,500 m
1 600 sales
employees
TRANSACTION TYPE
•larger minority investments, 25–49
percent in unlisted companies
•influence through shareholder
agreements
•all financial instruments
HOLDING PERIOD
around 5–10 years
OWNERSHIP MODEL
INVESTED CAPITAL BY PHASE UP TO END OF DECEMBER 2014
SEK m
Start-up, 68
Early stage, 801
Growth, 497
Number of companies
2
14
9
•long-term active owner with a strong
international network
•focus on sustainable value creation
through profitable growth, organically
or through additional acquisitions
board representation from
Fouriertransform or external network
•
1
2
CEO’s comments
BUSINESS ACTIVITIES 2014
We stand for sustainable equity capital
accompanied by professional support
CEO PER NORDBERG’S COMMENTS
I
n 2014 a series of uncertainty factors impacted economic
development – both globally and in Sweden. The growth
numbers were a disappointment in most places, except
the USA and to some extent in the UK as well. In the euro
zone as a whole the situation was practically stagnant,
especially towards the end of the year when not even
German industry was able to keep up the pace.
Growth forecasts were gradually downgraded in Sweden,
one of the reasons being weak export development and low
industry investment. The Swedish manufacturing industry
and its subcontractors are closely linked to Europe, and
development in several important export markets such as
Germany, France, the UK and Finland has a big impact.
Also in 2014 we noted a wait-and-see attitude among
investors in the venture capital market resulting from the
generally uncertain outlook. This cautious attitude affects
initiatives in early phases for the industry’s subcontractors,
and we saw several signs of stretched liquidity among many
small and medium-sized manufacturing companies.
In light of the situation in the Swedish parliament after
the parliamentary election in September, Fouriertransform also adopted a cautious approach to follow-on
investments. In its budget proposal the new Government
wanted to alter Fouriertransform’s investment focus, but
according to the budget of the center-right Alliance
adopted by parliament in December, our mandate
will remain the same. We are carefully following the
Government’s overhaul of public venture capital policy
so that we may play a role and execute our mandate in
the best possible way.
Knowledge that creates growth
Manufacturing industry has been and still is the backbone
of Swedish prosperity. The significance of our successful
and internationally competitive industrial enterprises
is well-known to all, as are their origins in trailblazing
innovations and new sustainable solutions. At least as
important is the extent to which these enterprises have,
in turn, been a catalyst for new entrepreneurs who have
turned their innovations into commercial successes, and
how they have formed a growing industrial base, providing new jobs and new contributions to the country’s
prosperity. Today, much of the R&D conducted in the
industrial sector is being done by these companies,
i.e. the subcontractors that are so important to the
large industrial corporations.
This category contains many of the companies that are
about to take or have just taken the step from innovation
and prototypes to a sustainable, commercially viable
product and onwards into the marketing phase and internationalization. Many of them are still dependent on
a few customers in the Swedish or European market, which
makes them vulnerable. These are companies in the phase
where the need for equity capital accompanied by expertise
is perhaps the greatest. In return they have great potential
for value growth in the form of new jobs and export revenue.
Fouriertransform’s mandate involves identifying and
supporting Swedish commercially viable innovations
and ideas with growth potential. The SEK 3 billion the
Government has allocated to the company is not meant as
a subsidy, but as equity capital to be used in a professional
manner, based on commercial criteria, and will therefore
create value. The investments in the automotive and
manufacturing industries made during the years in which
Fouriertransform has been in operation have provided an
important boost, allowing manufacturing enterprises
throughout the country to obtain new equity capital. But
what is equally important is the access they gain to knowledge and networks, enabling them to commercialize
their products, be competitive enough to venture into
an international market and thereby grow and recruit.
Cautious optimism about the investment portfolio
As a result of the uncertain market situation, Fouriertransform has noticed a significant interest in minority
investments in growth companies. Here we can work in
a way that complements the market by helping to secure
financing for strategic projects. Altogether we had
meetings with around 300 companies during the year.
Many of them may be of interest for future investment
based on our criteria of a high level of innovation,
production complexity and future value growth.
New investments were made during the year in
Osstell in Gothenburg, Pelly Intressenter in Hillerstorp,
ÅAC Microtec in Uppsala, SMP Parts in Ilsbo, Hälsingland, and APR Automation in Arvika. Altogether we have
invested SEK 1,366 million in new portfolio companies
since the start in 2009. In total, Fouriertransform has
invested in 25 companies during its time in operation,
three of which have been sold. At the end of 2014 we had
22 companies in our investment portfolio with combined
sales of SEK 2.5 billion and 1,600 employees.
CEO’s comments
BUSINESS ACTIVITIES 2014
Working and prioritizing in a focused
way as a portfolio company owner
enables us to quickly bring sustainable
value growth to our portfolio companies.
Despite the difficult market situation during the year,
the long-term potential of the companies is considered
good. One example is software developer ArcCore which
established a subsidiary in Munich to get closer to its
customers in the Central European automotive market.
Fuel cell developer PowerCell established a presence in
the Asian market in South Korea in 2014.
A decision was taken during the year to list PowerCell
on First North at NASDAQ Stockholm. The first trading
day was December 19. The listing raised SEK 108 million
in capital for the company for the important development period going forward.
At the beginning of 2015 the engineering company
LeanNova was sold to ÅF AB (publ). The company was
launched with Fouriertransform’s involvement after the
bankruptcy of Saab Automobile. The intention was to
preserve and commercialize the unique expertise that still
existed in Trollhättan. At the start in 2012 the company
had two employees and, with our investment, has grown
to a head count of 200 and offices in Trollhättan, Gothenburg, Shanghai and Coventry. The customers are primarily
global automotive manufacturers. We are very happy that
we have been able to make a concrete and positive contribution to the Swedish automotive industry and thereby
keep this valuable expertise in Sweden. This has also
enabled Trollhättan to retain its position as a competency
cluster for the automotive industry. ÅF is a strong industrial owner that can accelerate LeanNova’s future growth.
Sustainable value creation
Fouriertransform stands for sustainable value creation in
a world where factors such as climate impact, population
growth and shortage of water are increasingly changing
the business conditions. Our objective is for sustainability, growth and profitability goals to be compatible
and interconnected. By investing in companies with
products and solutions that save resources and reduce
negative environmental and climate impact, Fouriertransform can help make Swedish industry more
competitive and facilitate climate adaptation. Fouriertransform, as a state-owned actor, has a particular
responsibility to work actively on sustainability.
Our four sustainability goals inform our investment
activity. In 2014 we analyzed our portfolio companies’
status with respect to sustainability, focusing on
activities aimed at sustainable value creation – within
Fouriertransform as well as our portfolio companies.
In 2015 we will continue the intensified dialogue
with our portfolio companies to identify quantifiable
sustainability goals to incorporate into their day-to-day
business.
Outlook
One important aspect of our business, in addition to
contributing capital and knowledge, is to help to create
clusters and networks among innovation enterprises.
We are often invited to participate in various events
around the country where business leaders and innovators are assembled. It is gratifying to know that our participation is increasingly in demand in these contexts.
We see no indication of a decline in interest in Fouriertransform as a partner and we intend to continue building a strong deal-flow. At the end of the year we had
investment decisions pending for around 10 companies,
with an emphasis on early-phase ventures and niche
mechanical industry segments.
All of the contacts we have made have demonstrated the creativity and innovative power there is to
build on in Swedish industry. It is fantastic to be on
this journey realizing, commercializing and reindustrializing Sweden through so many promising projects.
It is imperative that we strengthen the future competitiveness of Swedish manufacturing industry.
Per Nordberg, CEO
3
NETWORK
The portfolio
companies are given
access to knowledge
and networks so
that they can
commercialize their
products, become
competitive enough
to venture out into
an international
market and thereby
grow and recruit.
NEW
INVESTMENTS
5
COMPANIES
202
SEK M
At the end of 2014 we
had 22 companies in
our investment portfolio with combined
sales of SEK 2.5
billion and 1,600
employees.
SUSTAINABILITY
Our objective is
for sustainability,
growth and profitability goals to be
compatible and
interconnected.
MANAGEMENT
COSTS
Administrative costs
for 2014 amount to
SEK 60 million. The
average since inception to Dec. 2014
is 1,5 % in relation
to total capital of
SEK 3 billion.
4
Portfolio summary
BUSINESS ACTIVITIES 2014
Fouriertransform’s
investments since inception
Since inception Fouriertransform has invested a total of
SEK 1,366 million in 25 companies. Fouriertransform’s
mission is to invest in the Swedish manufacturing industry.
Since the start in autumn 2009 Fouriertransform has
invested a total of SEK 1,366 million. Just over 64 percent
of the invested capital has gone into early stage companies that are developing products or have completed
product development and need capital to start commercial production and sales.
Investment applications
Since inception in 2009 Fouriertransform has evaluated
around 720 investment applications, mainly in the
automotive industry. Since August 2013, when
Fouriertransform’s mandate to start investing in companies throughout the manufacturing industry began,
numerous investment applications have been received
from other manufacturing industry segments, such as
medical technology, engineering, electronics, cleantech,
high-tech and IT/telecom. The application portfolio
currently contains about 100 applications, most of which
are companies in growth and mature phases.
Invested capital by phase up to the end of December 2014
SEK m
Total invested capital
Number of companies
Start-up, 68
2
Early stage, 801
14
1,366
SEK MILLION
9
Growth, 497
Investments since inception
Since inception in 2009 Fouriertransform has invested in 25 companies as a new shareholder:
•PowerCell Sweden AB
•Norstel AB
•NovaCast Technologies AB
•FlexProp AB
•EffPower AB
•Alelion Batteries AB
•Elforest Technologies AB
•MaxTruck AB
•Applied Nano Surfaces Sweden AB
•Vicura AB
•Jobro Plåtkomponenter AB
•Pelagicore AB
•Inxide AB
Gothenburg
Norrköping
Tyringe
Halmstad
Gothenburg
Mölndal
Örnsköldsvik
Östersund
Uppsala
Trollhättan
Ulricehamn
Gothenburg
Trollhättan
Trollhättan
•LeanNova Engineering AB
Gothenburg
•ARCCORE AB
Malmö
•CeDe Group AB
Smart
Eye
AB
Gothenburg
•
TitanXGothenburg
•
Stockholm
•Rototest International AB
Stockholm
•SciBase AB
ÅAC
Microtec
AB
Uppsala
•
Pelly
AB
Hillerstorp
•
Gothenburg
•Osstell AB
Arvika
•APR Automation AB
SMP
Parts
AB
Ilsbo
•
Our portfolio companies
BUSINESS ACTIVITIES 2014
5
Fouriertransform’s
portfolio companies
As of December 2014 Fouriertransform’s portfolio consisted
of 22 portfolio companies. The companies’ net sales total around
SEK 2,500 million, they employ a total of around 1,600 people
and are geographically spread throughout Sweden with an
emphasis on the Västra Götaland region.
Fouriertransform works actively to generate value in the
companies right from the time of the initial investment, and
several of the companies are showing positive development.
It is not possible to make definitive statements about the portfolio as a whole because the time horizon for the holdings is longer
than the five years that Fouriertransform has been active, but
Fouriertransform believes that, based on the present situation,
the portfolio has the potential to evolve in a positive direction.
Investments
In 2014
Before 2014
A S OF DEC. 31, 2014
Alelion Batteries
Applied Nano Surfaces
APR Automation
ARCCORE
Alelion Batteries develops, manufactures and markets complete energy storage
systems primarily for the automotive industry. The systems are based on lithium iron
phosphate batteries.
Initial investment
% of votes
Location
June 2010
71 %
Mölndal
Phase: Early stage
Investment Director
Christian Zeuchner
The company has developed unique technology for creating surface coatings with
properties that reduce friction and wear on steel and cast iron surfaces in mechanical
systems. Applied Nano Surfaces’ technology makes large-scale industrial production
of coated components possible at a fraction of the cost of equivalent coatings.
Initial investment
% of votes
Location
December 2010
35 %
Uppsala
Phase: Early stage
Investment Director
Daniel Riazzoli
APR Automation is an integrator that delivers complete automation solutions to
customers in a number of industries. The company has expertise in electrical design,
PLC programming, robot programming, mechanical design, project management
and installation.
Initial investment
% of votes
Location
May 2014
49 %
Arvika
Phase: Growth
Investment Director
Mikael Johnsson
ARCCORE is a product development company specializing in AUTOSAR-compatible
software for control units within the automotive industry. ARCCORE was founded
in 2009 by five entrepreneurs with many years of software development experience.
Initial investment
% of votes
Location
April 2012
38 %
Gothenburg
Phase: Growth
Investment Director
Mikael Johnsson
6
Our portfolio companies
CeDe Group
Inxide
Elforest Technologies
Jobro Plåtkomponenter
LeanNova Engineering
Max Truck
Norstel
BUSINESS ACTIVITIES 2014
CeDe Group is a leading supplier of customized heavy machinery. The company
is a full service supplier with extensive expertise in production applications,
mechanics, hydraulics and electronics.
Initial investment
% of votes
Location
May 2012
49 %
Malmö
Phase: Growth
Investment Director
Carl Backman
Inxide is a spin-off from the Swiss university of technology, École Polytechnique
Fédérale de Lausanne (EPFL), and develops composite components. Production
capacity is currently being built up to produce and market the components in large
volumes.
Initial investment
% of votes
Location
December 2011
98 %
Trollhättan
Phase: Early stage
Investment Director
Per Nordberg
Elforest is an innovative company whose business concept is to use modern technology to run vehicles more efficiently. In recent years the company’s focus has shifted
from solutions to increase the productivity and efficiency of forestry machinery to an
offering that adds value for customers and the environment in multiple industries.
Initial investment
% of votes
Location
June 2010
61 %
Örnsköldsvik
Phase: Early stage
Investment Director
Daniel Riazzoli
The company manufactures and sells prototypes and short production runs of
complex sheet metal parts for the engineering industry, with an emphasis on the
automotive industry. The company is a full service supplier with expertise in press
tempering, materials science, tool making and production engineering.
Initial investment
% of votes
Location
May 2011
45 %
Ulricehamn
Phase: Growth
Investment Director
Carl Backman
LeanNova is a start-up company established by Fouriertransform, Innovatum and
senior personnel from Saab Automobile. LeanNova delivers complete development
projects to Swedish and international automotive customers.
Initial investment
% of votes
Location
January 2012
99 %
Trollhättan
Phase: Growth
Investment Director
Carl Backman
The company is developing an electric forklift truck that can maneuver in all four
directions from a stationary position and rotate around its own axle. The forklift
therefore requires significantly less space than a conventional one. The distances
it travels are much shorter and warehouse space can be utilized more efficiently.
Initial investment
% of votes
Location
July 2010
35 %
Östersund
Phase: Early stage
Investment Director
Carl Backman
Norstel develops and markets SiC wafers (silicon carbide wafers). SiC is expected
to replace silicon as the main material in semi-conductor based power electronics.
Norstel’s product quality combined with the modern development and production
facility in Norrköping are a good foundation for successful market commercialization.
Initial investment
% of votes
Location
February 2010
100 %
Norrköping
Phase: Early stage
Investment Director
Christian Zeuchner
Our portfolio companies
BUSINESS ACTIVITIES 2014
Osstell
Pelagicore
The company develops, manufactures and sells an instrument and accessories used
to measure the stability of dental implants. Dental implants consist of titanium screws
that are inserted in a hole drilled in the jawbone. To ensure that the implant has
fused properly with the jawbone, a peg is attached to the implant. The stability of
the implant is then measured by Osstell’s instrument.
Initial investment
% of votes
Location
March 2014
36 %
Gothenburg
% of votes
September 2011 64 %
PowerCell
Rototest International
SciBase
SmartEye
Investment Director
Carl Backman
Pelagicore is a product development company specializing in open source software
for infotainment systems in the automotive industry. The company develops and
licenses software that reduces the time and cost involved in developing infotainment
systems for vehicles. Its customers are primarily car manufacturers and their
subcontractors.
Initial investment
Pelly
Phase: Growth
Location
Phase: Early stage
Gothenburg
Investment Director
Christian Zeuchner
Pelly is one of the Nordic region’s leading suppliers of flexible storage solutions.
The company has a full range of products in sliding door storage and freestanding
storage, as well as storage solutions for the kitchen, bathroom and closet sector.
Initial investment
% of votes
Location
March 2014
37 %
Hillerstorp
Phase: Growth
Investment Director
Carl Backman
The company develops and distributes advanced fuel cell systems for the transport
industry and certain other high-tech markets. The company, which has its origins in
the Volvo Group’s fuel cell development project, aims to accelerate the launch of fuel
cell systems on the market through development, production and sales.
Initial investment
% of votes
Location
October 2009
23 %
Gothenburg
Phase: Early stage
Investment Director
Mattias Silfversparre
Rototest develops, manufactures and markets test equipment, so-called hubmounted dynamometers, for the automotive industry. The company’s patented
solutions for hub-mounted automotive dynamometers offer many times greater
measurement accuracy than traditional technology.
Initial investment
% of votes
Location
July 2013
49 %
Rönninge
Phase: Growth
Investment Director
Christian Zeuchner
SciBase has developed a unique method for detecting malignant melanoma.
The method, which is based on research at Karolinska Institutet, sends electrical
impulses at different frequencies through the area of skin under examination.
Initial investment
% of votes
Location
December 2013
20 %
Stockholm
Phase: Early stage
Investment Director
Per Aniansson
Smart Eye develops and sells software and systems for eye sensors. The company
has developed a safety and comfort product specifically for the automotive industry.
Initial investment
% of votes
Location
February 2013
17 %
Gothenburg
Phase: Growth
Investment Director
Mikael Johnsson
7
8
Our portfolio companies
SMP Parts
TitanX
Vicura
ÅAC Microtec
Active portfolio companies
BUSINESS ACTIVITIES 2014
SMP Parts is a high-quality supplier of couplers, tiltrotators (Swingotilt®), buckets
and other specialist equipment for construction machinery. The company is one
of the few suppliers to offer a complete range of excavator-related equipment.
Initial investment
% of votes
Location
June 2014
43 %
Ilsbo
Phase: Growth
Investment Director
Christian Zeuchner
TitanX is a leading supplier of cooling systems for the heavy vehicle industry and
has the majority of major heavy vehicle manufacturers as customers, for example
Daimler, Scania, Volvo and Navistar.
Initial investment
% of votes
Location
March 2013
38 %
Stockholm
Phase: Growth
Investment Director
Christian Zeuchner
The company provides consulting services in the area of drivelines for the international
automotive industry. Vicura develops complete systems or components from the concept stage to industrialization for the international automotive industry. The offering
includes mechanical and electrical drive systems as well as control systems for them.
Initial investment
% of votes
Location
January 2011
99 %
Trollhättan
Phase: Growth
Investment Director
Carl Backman
ÅAC Microtec delivers highly refined solutions and systems to private-sector and
public organizations in the air and space industry. Today the company is a key partner
in leading development projects for the production of new and smaller satellites.
Initial investment
% of votes
Location
March 2014
49 %
Uppsala
Phase: Growth
Investment Director
Erik Sterner
Location
Initial investment
% of votes 1)
Early stage
PowerCell Sweden AB
Norstel AB
Alelion Batteries AB
Elforest AB
Max Truck AB
Applied Nano Surfaces Sweden AB
Pelagicore AB
Inxide AB (formerly EELCEE AB)
SciBase AB
Gothenburg
Norrköping
Mölndal
Örnsköldsvik
Östersund
Uppsala
Gothenburg
Trollhättan
Stockholm
2009 October
2010 February
2010 June
2010 June
2010 July
2010 December
2011 September
2011 December
2013 December
Estimated fair value
Growth
Vicura AB
Jobro Plåtkomponenter AB
LeanNova Engineering AB
ArcCore AB
CeDe Group AB
Smart Eye AB
TitanX Holding AB
RotoTest International AB
ÅAC MIcrotec AB
Pelly AB
Osstell AB
APR Automation AB
SMP Parts AB
SEK 572.6 million
Trollhättan
Ulricehamn
Trollhättan
Gothenburg
Malmö
Gothenburg
Stockholm
Rönninge
Uppsala
Hillerstorp
Gothenburg
Arvika
Ilsbo
2011 January
2011 May
2012 January
2012 April
2012 May
2013 February
2013 March
2013 July
2013 July
2014 March
2014 March
2014 May
2014 June
Estimated fair value
Total estimated fair value
1)
23 %
100 %
71 %
61 %
35 %
35 %
64 %
98 %
20 %
For portfolio companies in which Fouriertransform holds more than 50 % of the voting rights, the intention is to reduce this over time to below 50 %
99 %
45 %
99 %
38 %
49 %
17 %
38 %
49 %
49 %
37 %
36 %
49 %
43 %
SEK 788.2 million
SEK 1,360.8 million
Mikael Söderberg, Founder and CTO, Pelagicore
CASE FOURIERTRANSFORMS NETWORK
PELAGICORE
What was it like when Fouriertransform came in as an owner of Pelagicore?
“We started our company in 2009 and Fouriertransform
came in as an owner in 2011. It had been an enormous
struggle for us to establish the company. Because our products and solutions are aimed at the automotive industry,
we knew early on that we needed to get into the international market in order to be really competitive.
Fouriertransform has been of huge value all along.
They’ve helped us find an excellent board of directors and
great advisors who are really impressive individuals with
large networks in the automotive industry, and they
understand our sector. It would have been very difficult for
us as a start-up to attract people of that caliber on our own.
Fouriertransform’s own employees have energized us
and been committed to helping us build up the company.”
You have grown quite a lot during this time. What are
your thoughts on that?
“We took an important step in 2012 when Nokia closed its
offices in Munich. We took over part of their core team
there and opened our own office. It’s a fantastic team of
individuals. There is only a handful of them in the entire
market. They are fast and on the ball and have significant
expertise in their fields.
We have also scaled up the organization and established
collaboration with partners for larger projects. We want to
work the best – people who can take on international
projects and who have expertise in a variety of areas, such
as radio, internet, navigation and telematics – all fully
related to the automotive industry.
Reliable subcontractors are extremely important for the
automotive industry. Production cannot be allowed to
grind to a halt because some part of the chain can’t deliver.
That’s the risk you face as a small player. Now we’re in a
position to take on big projects and important assignments
in an international market. I also believe that customers
appreciate the fact that we have a strong and stable owner,
even if there are no promises or guarantees.”
How have things gone so far and what does the future
look like?
“We’ve developed our products and our offering and now
we’ve sealed a number of important international deals in
Germany, the UK and the USA.
The contracts we’ve signed are the first ones of their kind
in terms of size, structure and strategic significance. They
are groundbreaking in the market – the next generation’s
way of doing business, you could say.
At the end of the year we received a large order which
required us to recruit more people in Munich, where we’re
now booked up for the next three years. So the future
certainly looks bright.”
10
Mission, vision and objectives
BUSINESS ACTIVITIES 2014
An active owner
that promotes growth
VISION
Fouriertransform’s vision is to contribute to the success of
an internationally competitive Swedish manufacturing industry
MISSION
Fouriertransform’s mission in the automotive industry and other parts of the manufacturing
industry and associated services is to invest in or finance companies involved in research,
development and investment activity that will lead to commercially viable products or services,
and to conduct business consistent with this mission.
OBJECTIVES
Objective Fouriertransform’s objective is to
strengthen and revitalize the Swedish industrial
cluster. Fouriertransform will provide its owner with
a commercial return and help to promote sustainable development by, among other things, investing in
companies or projects with a sustainability profile.
Financial objectives Fouriertransform’s
objective is to be a long-term industrial partner
that invests on a commercial basis. The financial
objectives are being updated.
Sustainability objectives In 2013 Fouriertransform established sustainability objectives for its
own operations and for the portfolio companies.
1. Fouriertransform’s portfolio companies must
establish strategies and targets for their sustain­
ability objectives no later than the end of 2014.
2.In 2014 sustainability work will be fully integrated into Fouriertransform’s investment
process – from proposal to exit – according
to a pre-determined plan of action.
3.To promote knowledge growth and experience exchange, Fouriertransform will address
topical and relevant sustainability issues
at annual network meetings with the portfolio
companies. Implementation will begin no later
than in 2014.
4.All of Fouriertransform’s employees will
receive regular training to provide them with
a deeper understanding of doing business
sustainably.
MARKET
INVESTMENT PROCESS
The arena in which Fouriertransform
executes its mission in a climate impacted
by global trends and Sweden’s position
and strengths.
A well-documented investment process –
from initial contact to exit – clearly defines
responsibilities, follow-up and control processes,
and guarantees the quality of investment decisions.
Fouriertransform’s
building blocks
EXPERTISE, NETWORK
ADMINISTRATIVE PLATFORM
Fouriertransform contributes expertise,
networks and sound ownership governance
to help the portfolio companies develop.
Supporting and guaranteeing high quality in
work procedures and routines, and creating
cost-effective processes in small organizations.
By employing its business and industrial expertise,
Fouriertransform is strengthening the Swedish
manufacturing industry. Fouriertransform’s strategy
is to invest capital and be an active owner in companies
in the manufacturing industry that have innovative
and commercially viable products.
12
Markets
BUSINESS ACTIVITIES 2014
Business environment and markets –
a year of disappointments
markets
There were few rays of hope in the economy in 2014. Although growth in the
Swedish economy was on the plus side, the effect was reduced by an environment
of low demand. In the manufacturing industry it was a weak year for several
sectors with parts of the automotive industry as the major exceptions.
Weak exports have impeded Swedish growth
Despite cautiously optimistic overtones at the beginning
of the year, the anticipated recovery in the Swedish
economy did not happen until the final quarter, when
outcomes were actually significantly stronger than the
forecasts had indicated. All in all this resulted in GDP
growth of an estimated 2.1 percent, which was fairly
close to the forecast of 2.5 percent at the beginning of
the year. Weak development in euro zone markets, which
are important to Sweden, was the main reason for the
sluggish Swedish exports and growth. In the euro zone
the situation was practically stagnant and for Sweden,
the significantly more positive development in the USA
and the UK were not enough to compensate for that. In
the fourth quarter, however, exports were the main factor
driving the Swedish GDP back up, and this applied to
both service experts and goods exports. Swedish goods
exports increased by a total of 3 percent in fixed prices
in 2014.
Wood products, paper pulp, iron and steel, pharmaceuticals, energy goods, oil products, metalwork and
electronics/telecom were among the goods categories
that did better than the average, while exports of goods
such as paper, engineering products, machinery, road
vehicles, cars and commercial vehicles increased
marginally or decreased.
Manufacturing industry, Swedish export 2014
Wood products, iron
and steel, pharmaceuticals, energy
goods, metalwork
and electronics
Paper, engineering
products, machinery,
cars and commercial
vehicles
On the whole, factors such as instability in Ukraine,
sanctions against Russia and falling oil prices contributed
to a situation during the year that was hard to assess.
Both the National Institute of Economic Research
(NIER) and Business Sweden are expecting exports to
recover gradually to around 5 percent for the years 2016
and 2017, but in an historical perspective, not even that
can be regarded as particularly strong development,
according to NIER. The NIER forecast for 2015 issued at
the beginning of the year points to GDP growth of just
over 2 percent in Sweden and for the OECD area as a
whole, while the US and Chinese economies are expected
to grow by 3 and just over 7 percent respectively. The
forecast for the euro zone still predicts modest growth
of about 1 percent.
Strong future for the automotive industry
There was very strong development in new car sales in
Sweden in 2014 and the upswing for car registrations
added up to almost 13 percent, making it the seventh
best year ever, according to industry association Bil
Sweden. The increase for light commercial vehicles
was just over 12 percent and total commercial vehicle
registrations increased by just under 12 percent.
According to Bil Sweden, the conditions will remain good
for growth in the car market in 2015. This is due to good
Automotive industry, Sweden 2014
3 %
13 %
12%
Total
2014
New car sales
Light commercial
vehicles
Total
2014
Markets
BUSINESS ACTIVITIES 2014
household finances, low interest rates and low inflation,
as well as the shortage of used cars in dealerships.
Vehicle sales increased in Europe as well. New car
registrations increased by almost 6 percent – the first
growth figure after six years of decline, according to the
European Automobile Manufacturer’s Association
13
(ACEA). Light commercial vehicles did even better,
with close to an 11-percent increase in new registrations
compared to 2013. However, the market for medium
and heavy commercial vehicles was down for the year
as a whole after a significant collapse in November
and December.
GDP growth forecast 2015
Sweden
Europe
+2 %
USA
+1 %
China
+3 %
+7 %
Source: NIER forecast
14
Investment process
BUSINESS ACTIVITIES 2014
A long-term focus on value
creation and competitiveness
INVESTMENT PROCESS
Fouriertransform’s investment focus is on companies and projects in
the Swedish industrial cluster. The investments are aimed at areas where
there is particularly strong potential for the Swedish manufacturing
industry to hold up well to the competition.
Fouriertransform is a long-term industrial partner that
contributes both resources and capital to the projects it
invests in.
Important projects are evaluated with the objective
of Fouriertransform being a flexible partner so that the
investment can be adapted to the specific situation of
each company. Fouriertransform aims to make the
investment process as smooth and fast as possible.
Once an investment is made, Fouriertransform’s
goal is to play a significant role in ensuring the company
has access to qualified industry expertise and other
expertise. This is done through board representation
and thanks to Fouriertransform’s extensive network in
industry and in the research and development cluster.
Fouriertransform works with private sector players as
well as the Swedish Energy Agency, Vinnova (Swedish
Government Agency for Innovation Systems), and stateowned venture capital company Almi Företagspartner,
among others.
Investment strategy
Fouriertransform actively seeks investment opportunities
in the prioritized strategic early stage investment areas.
An investment can essentially be made in all parts
of the value chain, i.e. from materials, components,
modules and systems, to aftermarket products and
services.
The projects must have a connection to Sweden with
production and/or development taking place within the
country. An investment must be clearly distinguishable
from any other activity.
Fouriertransform invests around SEK 30–300 million
per investment object and has large minority holdings
of 25– 49 percent.
Various financing solutions are considered, such as
share capital, profit-sharing loans and other equity capital. Fouriertransform invests with external syndication
partners, which, among other things, ensures that the
investments are made on market terms.
Investment profile
Fouriertransform is an active owner and invests capital
in manufacturing enterprises with innovative and commercially viable products and services. The investments
are made from Fouriertransform’s balance sheet aiming
for long-term value creation for the portfolio companies.
Fouriertransform, with its high level of industry
expertise in its management and on the Board, and with
a high-profile network of industrial advisors, is part of
the Swedish manufacturing industry. Having financial
expertise in management and on the Board enables
Fouriertransform to operate as a highly professional
venture capital player.
One important compass Fouriertransform uses in
executing its mission is its own, well-defined analysis
of the Swedish industrial cluster’s challenges and future
opportunities. An investment strategy has been developed
based on this analysis to enable Fouriertransform to
promote development in the areas within Swedish
manufacturing industry with potential for profitable
growth.
Investment criteria
When assessing an investment application,
Fouriertransform uses the following main criteria:
Entrepreneurs and management teams focusing
on the company’s growth and profitability
Innovative products or services with growth
potential in the Swedish and global markets
Attractive underlying growth market and good
profitability prospects
Collaboration with industrial partners who can
support the company’s commercialization and
expansion
A defined minimum level for sustainability work
Good potential for a future exit
•
•
•
•
•
•
Investment process
BUSINESS ACTIVITIES 2014
INVESTMENT PROCESS
1
2
3
Identification of
investment objects
Evaluation and
analysis
Board’s investment
decision
4
5
6
Investment
Value growth
Exit
The investment process
Fouriertransform’s investment process involves all aspects
of managing an investment – from initial contact to exit.
At the initial contact with a potential investment
candidate, Fouriertransform establishes a dialogue to
enable an investment to be made on a commercial basis.
The investment application goes through a professional
evaluation and the aim is to make the process as smooth
and fast as possible.
From an early stage in the investment process, Fouriertransform requests information on the company’s fundamental sustainability focus and initiates a discussion
on the company’s status and approach to sustainability.
A more detailed analysis is then conducted during the
subsequent evaluation and analysis phase. The Board’s
investment decision process includes addressing any
sustainability measures that need to be implemented
so that the company can live up to Fouriertransform’s
sustainability objectives.
Since no investments were initiated in 2014 based on
the updated investment process, this practice has not
been applied as yet, but the intention is to apply it to all
new investments starting from 2015. Once Fouriertransform has made an investment, it becomes an active owner
to ensure the company has access to advanced industrial
and other expertise throughout the holding period.
Following the investment decision, Fouriertransform
identifies the sustainability-related risks and opportunities of material significance for the company’s stakeholders and value growth. This analysis is conducted in
cooperation with the respective portfolio company and
results in sustainability goals and a plan of action for the
medium and long term.
A well-documented investment process ensures the
quality of the investment decision and clearly defines
responsibilities, follow-up and control throughout the
holding period. One of the tools for this is a portfolio
management system which handles the entire flow –
from Fouriertransform’s receipt of an investment
application to divestment of the holding.
Through its efficient administrative platform, Fouriertransform aims to achieve a balance between high-quality
work processes, routines and cost-effective processes,
while remaining a flexible and dynamic organization.
Throughout the holding period, internal and external
board representatives are tasked with driving and
monitoring development of the companies’ established
sustainability goals and its performance. In connection
with an exit, Fouriertransform ensures that sustainability aspects are highlighted in a relevant and valuedriving way.
15
16
Employees
BUSINESS ACTIVITIES 2014
Employees
Top row from left: 1. Per Nordberg, 2. Per Aniansson, 3. Erik Sterner, 4. Mattias Silfversparre, 5. Magnus Westerlind, 6. Carl Backman. Middle row from left: 7. Daniel Riazzoli, 8. Mikael Johnsson, 9. Anna Zetterlund,
BUSINESS ACTIVITIES 2014
Employees
17
❶ per nordberg CHIEF EXECUTIVE OFFICER B. 1956
Education: MSc Business and Economics, Stockholm School of Economics.
Professional experience: Executive Vice President and CFO, Sandvik AB
2004–2009, CFO, OMX 2002–2004, Group treasurer, Astra Zeneca Plc
1999–2002 and Astra AB 1995–1999, senior financial positions within
Atlas Copco 1981–1994.
Board positions: Member of the Board of Första AP-fonden.
❷Per Aniansson INVESTMENT DIRECTOR B. 1966
Education: MSc Engineering, Chalmers University of Technology and MBA,
INSEAD.
Professional experience: Experience in venture capital investments and
other major investments from positions with Industrivärden, Siemens and
Innovationskapital. Management consultant with Accenture and Arthur D.
Little. CEO and CFO roles at international entrepreneur-run small companies within medtech, biotech and wind power development.
❸Erik Sterner INVESTMENT DIRECTOR B. 1976
Education: MSc Business and Economics, Stockholm School of Economics
and MBA studies, Manchester Business School and Royal Institute of
Technology (KTH).
Professional experience: 12 years’ experience from venture capital
investments, most recently from EQT and prior to that, Nordstjernan.
❹Mattias Silfversparre INVESTMENT DIRECTOR B. 1972
Education: MSc Engineering, Chalmers University of Technology, law and
MSc Business and Economics, School of Business, Economics and Law,
University of Gothenburg.
Professional experience: Partner at Layline Partners, prior to that
Investment Manager at Bure Equity, Strategy Consultant at Adera
and Management Consultant at McKinsey.
❺Magnus Westerlind CHIEF LEGAL B. 1948
Board Secretary.
Education: Bachelor of Laws, Stockholm University.
Professional experience: Chief Legal Officer Statens Järnvägar/SJ AB
1994–2012, Associate Judge of Appeal, Svea Court of Appeal 1994, Chief
Legal Officer NCC AB 1992–1994, Chief Legal Officer and member of
executive management of Nordstjernan AB 1985–1992, CEO A. Johnson
International Petroleum Corporation B.V. 1983–1985.
❻carl backman INVESTMENT DIRECTOR B. 1971
Education: MSc Engineering and MBA, Chalmers University of Technology.
Professional experience: 17 years’ experience in the venture capital
market, most recently as CEO of Bure Equity.
❼Daniel Riazzoli INVESTMENT MANAGER B. 1977
Education: MSc Engineering, Royal Institute of Technology (KTH).
Professional experience: 10 years’ investment experience, most recently
as Senior Associate at FSN Capital Partners and prior to that as an
associate at 3i Nordic. Also, three years as a management consultant
with McKinsey & Co.
❽Mikael Johnsson INVESTMENT MANAGER B. 1980
Education: MSc Engineering, Chalmers University of Technology.
Professional experience: Employed by strategic consulting firm
Arthur D. Little 2006–2012 Solid experience in commercial consulting
for venture capital investments and running strategic projects within
manufacturing industry.
❾Anna Zetterlund CHIEF ACCOUNTANT B. 1973
Education: Karlstad University and Stockholm University.
Professional experience: 14 years’ experience in accounting and reporting,
including as Financial Controller and Accounting Manager at Inter IKEA
Investments and Catella.
❿ Viveca Gasslander CEO ASSISTANT B. 1964
Education: Market economist from IHM, international secretarial
education/Lausanne and Brighton.
Professional experience: CEO Assistant at Marsh AB, Executive Assistant
at Procuritas AB, CFO Assistant at Bredbandsbolaget and experience from
international agency operations in the wholesale trade as well as in the
pharmaceutical, health food and food industries.
⓫ Ulf Järvenäs CHIEF FINANCIAL OFFICER B. 1963
Education: MSc Engineering from Uppsala University.
Professional experience: 10 years with the venture capital company
HealthCap, which focuses on the life science sector; controller, SJ Gods
(Green Cargo); financial manager at small industrial enterprises in Germany;
auditor, PricewaterhouseCoopers.
⓬ Victoria Torell INVESTMENT ASSOCIATE B. 1988
Education: Stockholm School of Economics.
Professional experience: Employed by Citigroup 2011–2013. Experience
of M&A consulting and financial analysis.
⓭ Christian Zeuchner INVESTMENT DIRECTOR B. 1968
10. Viveca Gasslander, 11. Ulf Järvenäs. Front row from left: 12. Victoria Torell, 13. Christian Zeuchner.
Education: MSc Engineering, Chalmers University of Technology.
Professional experience: 20 years’ experience in the automotive industry;
head of Swedish operations for the automotive technology company
Ricardo Strategic Consulting; Senior Manager focusing on the automotive
industry with the international strategy consulting firms Arthur D. Little and
Roland Berger; R&D and Purchasing manager, GM Europe in Germany.
18
Expertise, network
BUSINESS ACTIVITIES 2014
A network that understands
the manufacturing industry
Fouriertransform is an owner that provides expertise, networks and sound
ownership governance to help its portfolio companies achieve their full potential.
This ownership model promotes value creation and is a key factor for success.
EXPERTISE/ NETWORK
Being a minority investor in a company, regardless of which
phase the company is in, places high demands on Fouriertransform’s organization and ownership model. In order
to help the portfolio companies create value, Fouriertransform needs to involve people with relevant expertise who
can assist the companies in all stages of their development.
Industrial and financial expertise
Since the start Fouriertransform has placed a great deal
of importance on ensuring that the necessary experience
is available. This applies to Fouriertransform’s employees
and in its development of an external Swedish and international network of people with industrial and financial
expertise. Several individuals in Fouriertransform’s network have backgrounds with one of the main automotive
manufacturers in Sweden or elsewhere in Europe.
Tailored boards
Advisers and board representatives from Fouriertransform’s network are recruited for the portfolio companies.
If the portfolio companies are to be successful, it is crucial that their boards are tailored to include personal
qualities, expertise and experience that complement the
company’s executive management. Fouriertransform is
aiming for more gender equality on portfolio company
boards, with a long-term goal of a 50/50 gender allocation. An annual review of the composition of the boards
is conducted aimed at achieving an even distribution of
men and women.
At the end of the year 16 individuals from
Mikael Johnsson
“A stimulating aspect of the job is
that as an active owner we contribute to the portfolio companies’
long-term value creation. To us, active
ownership means engaging in frequent dialogue with the portfolio
company about its progress, being involved in board work and in
some cases in strategic projects as well, such as financing or additional
acquisitions.
Fouriertransform also has an extensive network that we try to
make available to our portfolio companies. Through our network we
can access people who the portfolio companies themselves would
find it hard to reach, to serve on their boards or to provide advice on
specific issues.”
Investment Manager,
Fouriertransform
Fouriertransform’s network were sitting on the boards
of the portfolio companies.
High level of internal expertise
Fouriertransform’s Investment Directors and Investment
Managers also have solid industrial experience and/or
a background in the venture capital sector or strategic
consulting, often from working for international corporations. They play a key role in the entire investment
process by identifying and implementing investments,
producing value-creation plans for each company, and
evaluating and recruiting external board members. They
also ensure that reporting is adequate and act as sounding
boards for the CEO and Chairman of the Board. In some
cases Investment Directors serve as interim chairmen on
the boards of the portfolio companies.
Fouriertransform’s own Board of Directors also maintains an ongoing dialogue with the portfolio companies’
board representatives. At least one Fouriertransform’s
board meeting a year takes place at the offices of one
of the portfolio companies.
A sustainability perspective
Fouriertransform’s ambition is for the company’s
own employees and its external network to develop
knowledge and expertise on how sustainability factors
impact portfolio companies, the market and the economy in general. By emphasizing expertise in this area,
Fouriertransform will be in a better position to attract
interesting companies and business partners.
Victoria Torell
“I work a lot with our deal-flow, in other
words the companies where investment decisions are pending. But I also
work with a number of portfolio companies. What I enjoy about this job is that you get an overall perspective of
all aspects of the investment process – from analysis and evaluation, to
investment decisions and throughout the investment period until exit.
We meet new companies every week and that’s a very interesting
aspect of the job; seeing what scope exists in terms of innovations, and
how big the potential is for growth in the Swedish industrial sector.
Fouriertransform’s large network contains valuable experience and
expertise and those of us working here place a very high value on that. We
benefit from the network in all parts of the investment process – from
marketing and company analysis in the due diligence process, to board
representation for our portfolio companies.”
Investment Associate,
Fouriertransform
Kalender
BUSINESS ACTIVITIES 2014
19
CASE SUSTAINABILITY
POWERCELL
Big market potential for a new type
of fuel cell technology
Fouriertransform has been a shareholder in PowerCell since 2009. PowerCell,
which was listed on the stock exchange
in 2014, is the only company in the
world to have developed so-called reformer technology which has the capacity
to use fuels such as petrol and biofuel to
produce hydrogen of a quality that
enables it to be used in a PEM (polymer
electrolyte membrane) fuel cell. PEM
fuel cells are robust and have the highest energy density of all fuel cell types.
This is also the most mature fuel cell
technology and has a very broad application area. PowerCell’s fuel cell stacks
are designed to be used with different
types of fuels, such as pure hydrogen
gas and hydrogen produced with the
reformer technology from other fuels –
both renewable and fossil fuels. This
flexibility means that a large portion of
CASE SUSTAINABILITY
PELLY
Cooperation for sustainable
value creation
Pelly develops and manufactures storage solutions. During
the autumn discussions began with the company to determine
which sustainability issues it has assigned the highest priority.
Pelly is motivated to work with sustainable business development due to the stringent requirements from IKEA, one of the
company’s main customers. This will equip the company for
the future in light of the increased interest in sustainable
offerings.
In Pelly’s business there are several areas where sustainability and profitability go hand in hand, such as increased
material and energy efficiency, and more efficient transport
solutions. Pelly works activity in these areas and still has
one development project to exploit. The corporate culture is
characterized by constantly looking for ways to improve,
which creates good potential for success. As an owner we
are recommending that Pelly clearly integrates important
sustainability aspects into its business strategy, works towards
clear objectives and communicates its results.
the total fuel cell market is a potential
market for PowerCell. PowerCell’s stationary solutions (auxiliary power units,
APUs) will be used for long-lasting
backup or as a primary power source for
telecom base stations with no or poor
power supplies, which is the case for
70–80 percent of the 200,000 or so base
stations in Africa. Mobile APUs for
commercial vehicles will be used to significantly reduce emissions when the
vehicles are stationary. When an APU is
used there is no need for idling, which
means fuel consumption can be reduced by up to 75 percent and toxic emissions eliminated. In North America
alone there is a suitable fleet of around
700,000 vehicles and new production
of around 100,000 –125,000 vehicles
annually.
20
Sustainability
BUSINESS ACTIVITIES 2014
Sustainable value creation
The Government’s mission for Fouriertransform identifies sustainability as
a success factor in the future market for Swedish industry. Our strategy of investing
in companies with unique and commercially viable offerings is, in most cases,
the same as ensuring that the products or production processes are more efficient
and sustainable than their predecessors.
Our objective
Our objective is that the goal for sustainability, growth
and profitability are compatible and interconnected.
Global sustainability trends, such as climate impact,
population growth and water shortages, affects the conditions for entrepreneurship. To create a sustainable and
growing business from a sustainable business concept or
technology, it is necessary to equip the company to meet
a globalized and changing world. Here, environmental,
social and financial challenges await, but there are also
competitive advantages for the companies that can
handle them. As an owner we want to ensure that our
portfolio companies incorporate important sustainability
factors in their business models and plans at an early
stage. It is our belief that this will increase the profitability, competitiveness and value of the companies.
OWNER
PORTFOLIO COMPANIES
As an owner, the Swedish Government expects Fouriertransform
to strengthen the Swedish manufacturing industry’s competitiveness
and be a role model as a company.
Fouriertransform acts as a resource
bank for the portfolio companies
and maintains good relationships
to ensure they develop in a positive way.
CO-FINANCIERS
NETWORK
By working in cooperation with
co-financiers, Fouriertransform is
able to help raise the level of the
total investment in portfolio companies significantly. Cooperation with
other investors also brings expertise
into Fouriertransform’s network.
This also ensures that investments
are made on market terms.
With the help of qualified individuals
who are part of Fouriertransform’s
network, the company can contribute industrial and other important
expertise that can contribute to
the longterm growth of the portfolio
companies.
Focus on the value creation process
The value creation process is the engine of Fouriertransform and drives the company’s sustainability strategy.
The company’s aim is to offer financing so that innovation, creativity and sustainable business concepts can be
turned into attractive ventures. This involves not only
providing capital, but also assisting companies in identifying their most important sustainability considerations
and ensuring that they take action to minimize the risks
and develop the opportunities that exist in their value
chain, business model and long-term strategy.
At the same time it is important for Fouriertransform
as a company to maintain a high level of credibility
among its stakeholders and in the market. We achieve
this by being knowledgeable, committed and open and,
not least, by acting ethically and with integrity in
everything we do.
EMPLOYEES
Fouriertransform’s employees
possess unique skills and have
access to valuable networks.
It is therefore very important
for the employees to perceive
Fouriertransform as an attractive
employer.
AUTHORITIES
Authorities and local decisionmaking bodies can greatly influence
the conditions for the portfolio
companies’ existence and activities
through various decisions that
affect their operations.
MANUFACTURING INDUSTRY
Manufacturing industry is facing
great challenges where reducing
dependence on fossil fuels is the
key issue in the adaptation that is
taking place. Fouriertransform’s
investments in new technologies
are aimed at making a positive contribution to the adaptation process.
LOCAL COMMUNITY
Fouriertransform’s portfolio
companies are expected to
contribute to the development
of their local communities. At the
same time, individual portfolio
companies are dependent on
their surrounding community
and infrastructure.
Sustainability
BUSINESS ACTIVITIES 2014
Stakeholders
Fouriertransform is surrounded by a number of players
who, more than others, affect and are affected by the
company’s operations. The stakeholders that Fouriertransform has identified as the most important ones are:
the owner, the employees, the portfolio companies,
manufacturing industry, co-financiers and the
company’s network.
Sustainability management
In its owner guidelines, the Swedish Government has set
clear standards for state-owned companies to act as role
models with respect to environmental and social responsibility. Since 2007 all state-owned companies are required
to publish an annual third-party reviewed sustainability
report based on the guidelines in the Global Reporting
Initiative (GRI). Through the Ministry of Finance, the
Government announced in 2012 the requirement whereby
the boards of state-owned companies must present their
objectives for sustainability management.
In 2014 Fouriertransform began the process of implementing the four overall sustainability objectives established by the company’s Board in 2013, see the objectives
outlined below. In 2014 our main task was to establish
process support and communicate our approach and our
objectives internally and to our portfolio companies.
We also conducted a thorough inventory of all of the portfolio companies’ sustainability work. Towards the end of
the year we started an intensified dialogue on important
sustainability issues with two of our portfolio companies.
The starting point for the discussion is the companies’
existing or intended business models and value chain,
important stakeholders and trends in the business
environment, as well as the respective companies’ growth
strategy. This work will continue in 2015. We want to address sustainable value creation from various perspectives
at our annual network meetings with the portfolio companies. To equip our own organization, all of the employees
will receive information and training on an ongoing basis
in relevant and current sustainability issues.
Since the start in 2009, Fouriertransform has applied a
Code of Conduct and a Sustainability Policy adopted by the
Board of Directors. The Code of Conduct and Sustainability
Policy include and outline business ethics, corporate social
responsibility, responsibility to the employees, environmental responsibility, communication with internal and
external stakeholders, and compliance with laws and
guidelines. All of the employees have been provided
with the Code of Conduct. Fouriertransform also has an
Ownership Policy and an Equality and Diversity Policy.
All of the policies can be found on Fouriertransform’s
website: www.fouriertransform.se
Sustainability objectives
In 2013 Fouriertransform established sustainability objectives for its own operations and for the portfolio companies. 2014
was affected by some uncertainty about the future investment mandate and focus of the portfolio companies, which slowed
down sustainability work. The sustainability objectives were not therefore reached within the established timeframe, but
work is continuing in the same direction and towards the same objectives in 2015.
Objectives
Status 2014
Next step
❶ Fouriertransform’s portfolio companies are
The work of implementing the objectives was
carried out during the year. Analysis tools were
developed and Investment Directors were
informed. All portfolio companies were informed
and an initial inventory was made of their
sustainability work. An intensified dialogue has
been initiated with two of our portfolio companies.
Continue the gradual implementation with the
objective that all portfolio companies will start
working towards their objectives no later than in
2015.
❷ In 2014 sustainability work will be integrated
A framework has been established, but as no
new investments were initiated in 2014,
implementation has not yet begun.
Continue to communicate, educate and follow
up within the investment organization.
❸ To promote knowledge growth and expe-
Planned activities had to be cancelled due to the
changed political situation during the autumn.
Doing business sustainably will be a constant
item on the CEO Day agenda, and topical and
relevant themes will be highlighted.
❹ All of Fouriertransform’s employees will
The strategy for sustainable value creation was
addressed on the internal strategy day in
August.
Continue to educate all of the employees on an
ongoing basis to deepen their knowledge about
relevant sustainability areas.
required to have established strategies and targets for their sustainability objectives no later
than the end of 2014.
into Fouriertransform’s investment process –
from application to exit – according to a predetermined plan of action.
rience exchange, Fouriertransform will address
topical and relevant sustainability issues at
annual network meetings with the portfolio
companies. Implementation will begin no later
than in 2014.
receive regular training to provide them with
indepth knowledge and information about
doing business sustainably.
21
22
Administrative platform

BUSINESS ACTIVITIES 2014
GRI supplement
Fouriertransform’s GRI index can be found
on the company’s website:
www.fouriertransform.se.
Sustainability reporting
Fouriertransform reports its sustainability work in line
with the guidelines from the Global Reporting Initiative
(GRI). To supplement this report and to clarify how this
report relates to the guidelines, an index with page references and references to other sources has been posted
at www.fouriertransform.se. The index also contains
certain supplementary information within the framework of the GRI guidelines. This GRI index contains
all of the standard disclosures to meet the criteria for
Application Level C+ and the core indicators that
Fouriertransform has decided to report on.
Financial value creation
Fouriertransform is a long-term industrial partner that
invests on a commercial basis. The company’s wider
mission is to create economic growth by strengthening
the competitiveness of Swedish manufacturing industry.
Through the investments, jobs may be created within
the portfolio companies and when the companies grow,
more employment opportunities are generated through
suppliers and other players, which in turn generates
tax revenue.
Fouriertransform’s own sustainability work
Fouriertransform focuses its internal sustainability
work on aspects that are of significance for the
company’s operations and for maintaining trust in the
company within the wider community. Business ethics
and anti-corruption are among the company’s focus
Financial value created and distributed in 2014
areas and past education initiatives will be followed up
with additional knowledge increase.
Having a relationship based on trust between employees
and management is a priority for Fouriertransform. The
principle of freedom with responsibility applies to all work
within the company. Each employee is able to influence his
or her work situation, and Fouriertrans-form’s aim is to be
a responsive, developing and responsible employer. Career
development reviews with the employees provide an opportunity for employees to voice their opinions, steer their
career path and professional development process, and
impact their work environment. Fouriertransform’s
employees attend these reviews twice a year to evaluate
their performance, well-being and development. Fouriertransform is a knowledge-intensive company where each
individual employee represents unique skill sets and has
a network of significance for Fouriertransform’s business.
In 2014 two new employees were recruited to the management organization and one left the company. At the end
of the year the company had 13 employees, three of them
women. Absence due to illness in 2014 was at 0,24 percent.
Fouriertransform is a small organization with limited
direct environmental impact that mainly consists of
energy consumption at the offices, consumption of office
materials and business travel. Fouriertransform aims to
make it easy for em­ployee travel and meetings to be
environmentally sound. At this time Fouriertransform
only measures direct environmental impact and not
indirect impact through the company’s investments.
Energy consumption and carbon dioxide emissions
SEK 000s
Value created
Income
Net financial income
889
62,590
Distributed value
21,882
Salaries and benefits for employees
36,777
Payments to the public sector
Retained value
2014
Electricity
28.5 MWh
20.8 MWh
Heating
55.2 MWh
51.3 MWh
Cooling 1)
15.1 MWh
14.6 MWh
0 tonnes
0 tonnes
21.2 tonnes
27.5 tonnes
CO2 from energy consumption 1)
Other external expenses
Payments for financiers
2013
19,710
-14,890
CO2 from business travel 2)
1) The landlord has stated that all energy purchased is from renewable sources and that carbon dioxide emissions are zero.
2) Fouriertransform’s business travel consists mainly of air travel. Other business travel, such as trips by car and rail, makes up a relatively small percentage and is therefore
considered immaterial.
COR P OR AT E G OV E R NA NC E
24
Corporate governance
BUSINESS ACTIVITIES 2014
Investments aimed at
“Sustainable value creation”
COMMENTS BY CHAIRMAN SIGRUN HJELMQUIST
I
n 2014 we saw an intense focus onFouriertransform’s
operations, big changes in our Board and revolutionary proposals from our owner regarding our future
mandate.
It was a challenge for Fouriertransform’s investment
directors under these, in some respects uncertain, conditions to be able to focus on business development in the
existing portfolio and on new investments. But they
succeeded. Fouriertransform’s team has shown that
they can handle operational challenges while at the
same time assisting with general strategic issues.
Big changes
There have been significant changes in Fouriertransform’s Board over the past two years. At the Annual
General Meeting in 2014 Jan Bengtsson, Ulf Berg and
Charlotte Rydin were elected as new members and
I was elected as Chairman. Also at the meeting, Hasse
Johansson, Hanna Lagercrantz and Christina Åkerman
were re-elected to the Board. Hanna Lagercrantz and
Christina Åkerman were both elected as new board
members at the 2013 AGM. This means that all of the
board members, with the exception of Hasse Johansson,
are new to the Board, having joined over the past 1–2 years.
Naturally, such big changes to the Board of Directors
also involve changes in the Board’s work and decision
processes. During the year the Board and management
held in-depth discussions on how we can best interpret
our mission and the guidelines we receive from our
owner so that the public funds we invest will result in
valuecreated investments along commercial lines.
Public venture capital
No one could have failed to notice the interesting discussion in recent years – in both the political and academic
arenas – on public venture capital programs. Among the
topics discussed were the focus of public venture capital,
what the various actors should do and in which phases
public venture capital can be useful. At Fouriertransform
we welcome this discussion. We have taken the initiative
to contact our public venture capital colleagues to find
opportunities for cooperation and to avoid duplication
of work. Now we are looking forward to contributing
to a general overhaul of future public venture capital
programs in Sweden.
Election year 2014
The Board of Fouriertransform has noted clear signals
from several political parties – expressed both before
and during the 2014 election in public interviews and
debates – that they mainly want to target public venture
capital at early-phase enterprises and ventures. This has
naturally affected how we are applying the mandate
expressed in our Articles of Association.
It was also clear that the Government’s proposed
budget in autumn 2014 contained a proposal to change
Fouriertransform’s mandate. Among other things, the
proposal involved a partially new business focus and also
shifting management of parts of the existing portfolio
companies away from Fouriertransform. These proposed
changes of course prompted many questions from our
portfolio companies and in the market in general.
To prepare for a possible amended mandate, the
Board and management spent time analyzing the consequences and alternative courses of action. Although
we obviously made no changes to our operations while
waiting for the decision, we were cautious for a number
of weeks with respect to our investments. When the
Swedish parliament’s budget proposal decision in
December 2014 resulted in no changes to Fouriertransform’s mandate, we halted our preparations
for a changed mandate. The lessons learned from this
process were valuable.
Corporate governance
BUSINESS ACTIVITIES 2014
“There is undoubtedly a need for our
financial investments as well as our
commercial expertise and networks.
Our challenge is to identify and select
the investment opportunities that will
best allow us to contribute to long-term,
sustainable commercial development.”
Unchanged mandate – sustainable value creation
So, for the time being, our mission remains the same –
to invest in or finance companies within the automotive
industry and other parts of engineering industry and or
offering associated services that are conducting
research, development and investment activities with
a view to commercialization. Within this mandate we are
now refining our processes so that we take investment
decisions that are as well-informed and effective as
possible. We are maintaining our conscious focus on
sustainable value creation, which is also part of
Fouriertransform’s mandate. We have expectations
of and we offer support to our portfolio companies to
minimize risks and take advantage of opportunities
in a world of climate change and other challenges.
The Board of Directors will be following this work
with interest and engagement.
There is undoubtedly a need for our financial investments as well as our commercial expertise and networks.
We have a growing deal-flow of interesting applications
from companies seeking financing. Our challenge is to
identify and select the investment opportunities where
we can complement the market, where we have good
syndication partners and where we can best contribute
to long-term, sustainable commercial development.
The fact that we are managing and investing public
tax funds with the purpose of gaining satisfactory
valuegrowth always guides our investment decisions.
Sigrun Hjelmquist
Chairman of the Board
25
26
Corporate governance
BUSINESS ACTIVITIES 2014
Corporate governance
during the year
Fouriertransform AB is a Swedish limited liability company that is wholly owned by the
Swedish Government. The company’s registered office is in Stockholm. The ownership
role is exercised by the Government with a mandate from the Swedish parliament to
actively manage state assets in such a way as to optimize long-term value creation.
Corporate governance within Fouriertransform
Corporate governance within Fouriertransform is based
on the Swedish Corporate Governance Code (the Code,
www.bolagsstyrning.se), which forms part of the
Government’s framework for ownership and administration. The company’s governance is also regulated by
Swedish legislation, the Government’s guidelines,
policy documents established by the Board, and by
internal regulations and documents.
The internal control documents are the Articles of
Association, the Rules of Procedure for the Board and
Instructions for the CEO, Fouriertransform’s Code of
Conduct, including the Sustainability Policy, Equality
and Diversity Policy and Ownership Policy, all of which
are established by the Board of Directors.
Wholly-owned state enterprises apply their own principles, in place of the Code when preparing for decisions concerning the nomination of board members and auditors.
Annual General Meeting 2014
The Annual General Meeting (AGM) was held in
Stockholm on April 23, 2014.
The AGM resolved that the Board of Directors will
consist of seven members and no deputies. Hasse
Johansson, Christina Åkerman and Hanna Lagercrantz
were re-elected. Sigrun Hjelmqvist (Chairman),
Charlotte Rydin, Ulf Berg and Jan Bengtsson were elected as new members. Based on the Board’s proposal, the
AGM decided on principles for employment terms and
remuneration for the CEO and senior management.
Nomination process
The nomination process is conducted and coordinated
by the division for state-owned enterprises within the
Ministry of Finance (as of January 2015 the Ministry of
Enterprise and Innovation). Board members are selected
from a broad recruitment base to achieve a balance of
expertise, background, age and gender.
The Board of Directors
The Government considers it important to separate the
roles of the board members and CEOs. Accordingly, CEOs
are not members of the boards of state-owned enterprises.
Under section 4.5 of the Code, at least two board members
must be independent of the company’s major shareholders.
The reason for the independence rule is to protect minority
shareholders. Where a company is wholly owned by the
state, there is no reason for it to account for its independence in relation to the state. In view of this, Fouriertransform does not report such information.
Work of the Board of Directors
During the 2014 financial year the Board held 11 regular
meetings and one statutory meeting. The company’s
auditor attended the March meeting, and at the February
meeting an agenda item was addressed in the absence of
the CEO. The Annual General Meeting was held on April
23, 2014 and an extraordinary general meeting was
held on October 17 for a decision on a reduction of the
registered share capital.
The Board of Directors, which has new members as of
the Annual General Meeting in April 2014, has clarified the
principles for Fouriertransform’s investment process
within the bounds of the Articles of Association. The
Board’s most important task has been to ensure that
Fouriertransform’s overall strategies and investment principles enable our capital to be used for long-term, sustainable
valuegrowth.
In 2014 the Board evaluated incoming investment
applications and proposals for follow-on investments
in existing portfolio companies and made decisions on
a number of new and follow-on investments.
An evaluation of the work of the Board of Fouriertransform was conducted in autumn 2014. The results were analyzed and discussed by the Board and reported to the owner.
The board members took a trip in autumn 2014.
Accompanied by members of management and a number
of employees, the board members had an opportunity to
visit a number of portfolio companies in South and West
Sweden. While on the trip, the Board also discussed
strategy issues.
The proposed changed mandate for Fouriertransform,
which the Government set forth in its budget proposal
in autumn 2014, prompted the Board to work with
BUSINESS ACTIVITIES 2014
management to analyze conceivable consequences for
Fouriertransform and to initiate certain preparations for
possible amendments. This work was halted when, in
December 2014, the parliament, in its budget proposal
decision, made a decision to keep Fouriertransform’s
mandate the same. Fouriertransform has, however,
kept the results of the analysis and preparations.
In 2014 the Board established an Audit Committee
tasked with supervising and addressing the usual issues
relating to financial reporting, internal control, risk
management etc. The committee consists of board
members Charlotte Rydin (Chairman) and Jan Bengtsson.
The Board also established a Remuneration Committee
in 2014 tasked with supervising and addressing matters
concerning remuneration principles and their application. This committee consists of board members Sigrun
Hjelmquist (Chairman) and Hanna Lagercrantz.
In November 2014 the Chairman of the Board and
some board members took part in Fouriertransform’s
annual portfolio company meeting. This provided an
opportunity for an information exchange and discussion
on the individual portfolio companies’ challenges and
opportunities.
2014 concluded with the traditional gathering of
Fouriertransform’s Board and employees at a work dinner
also attended by all of the external board members who
serve on the portfolio companies’ boards according to
Fouriertransform’s mandate. The evening provided an opportunity for a an exchange of experiences and networking.
Remuneration to senior management
Based on a draft proposal from the newly formed Remuneration Committee, the Board of Directors decided to
Corporate governance
expand the senior management team to include an
Investment Director, the CFO and the Chief Legal
Officer, in addition to the CEO.
Fouriertransform’s Annual General Meeting on April
23, 2014 decided on principles for employment terms for
the CEO and management. Accordingly, Fouriertransform will apply the guidelines established by the
Government on April 20, 2009 regarding employment
terms for individuals holding senior positions in stateowned companies, with the following clarification:
The principles in the Government’s guidelines also
guide decisions on total remuneration to other employees.
To ensure that the levels set by the Board for the company’s
costs for remuneration of senior management are not
exceeded, and that they are in line with the guidelines
established by the AGM, the following applies:
Based on the information on which the Board’s
original remuneration decisions were based, and on the
basis of the Board’s Corporate Governance Report, the
company’s auditor is to ensure that the remuneration
levels and other employment terms decided upon are not
exceeded. The auditor also prepares a special report for
the Board annually to describe observations made at the
board meeting that coincides with the year-end report on
the employment terms for senior management and other
employees and that they are consistent with the Board’s
decisions and guidelines. If the auditor is of the opinion
that the guidelines have not been followed, an explanation is to be included in the report. Before decisions on
individual remuneration packages are made, there is to be
written documentation showing the company’s total cost.
These guidelines are also to apply to all subsidiaries and
be approved by the AGM of the respective subsidiary.
27
28
Corporate governance
Board of Directors
BUSINESS ACTIVITIES 2014
Corporate governance
BUSINESS ACTIVITIES 2014
❶ sigrun hjelmquist CHAIRMAN B. 1956
Executive Partner, Facesso AB.
Chairman: Addnode Group AB, Almi Invest Stockholm AB and Almi
Invest Östra Mellansverige AB.
Board member: Eolus Vind AB, Ragnsellsföretagen AB, Technical
University of Denmark, Silex Microsystems AB and Nordic Iron Ore AB.
❷jan bengtsson BOARD MEMBER B. 1954
CEO Almi Invest AB
Chairman: Investment Committee Almi Invest central region.
Board member: Five of Almi Invest’s regional funds, Eolus Vind AB,
Saminvest AB, Styrelseakademin Stockholm, Partnerinvest AB.
①
②
❸ Ulf Berg BOARD MEMBER B. 1951
Board member: Speed International.
❹ Hasse Johansson BOARD MEMBER B. 1949
Formerly head of R&D at Scania AB.
Chairman: Lindholmen Science Park Aktiebolag, Vinnova AB and
Dynamate Industrial Services AB.
Board member: AB Electrolux, Skyllbergs Bruk AB, Calix Group AB,
LeanNova AB, Klippan Group AB and Alelion Batteries AB.
❺ Hanna Lagercrantz BOARD MEMBER B. 1970
Board member: LKAB and Svenska rymdaktiebolaget.
❻ Charlotte Rydin BOARD MEMBER B. 1968
Head of General Staff and Chief Legal Officer, Swedish National Debt
Office.
③
④
⑤
⑥
⑦
❼ Christina Åkerman BOARD MEMBER B. 1961
Director General Swedish Medical Products Agency (until 31 August).
CEO ICHOM (International Consortium for Health Outcomes
Measurement) (from 1 September).
Chairman: NTA (Nordic Trial Alliance).
Board member: EMA (European Medicines Agency) (until August 31).
29
F I NA NCI A L STAT E M E N T S
Financial statements
BUSINESS ACTIVITIES 2014
Income statement
Investment company, SEK 000s
Full year 2014
Full year 2013
Portfolio companies
Realized profit/loss, portfolio companies
Unrealized profit/loss, portfolio companies 1)
Interest income, receivables in portfolio companies
-3,263
-
-112,019
76,554
5,314
4,488
-
14,230
-109,968
95,273
889
5,657
Other external expenses
-24,924
-22,244
Employee benefit expenses
-36,777
-35,427
Dividends from portfolio companies
Profit/loss from portfolio companies
Income, consulting
Operating expenses
Depreciation of property, plant and equipment
Total operating expenses
Operating profit/loss
-999
-929
-62,701
-58,601
-171,780
42,329
91,909
155,000
Profit/loss from financial items
Financial income
Financial expense
-204
-46,115
91,704
108,885
Profit/loss after financial items
-80,075
151,214
Tax on profit/loss for the period
-10,835
-19,842
Net profit/loss for the period
-90,910
131,372
Total profit/loss from financial items
Other comprehensive income
Comprehensive income for the period
-
-
-90,910
131,372
Earnings per share, SEK
Before dilution
-0,033
0,048
After dilution
-0,033
0,048
1)
The amount for Q4 2013 has been adjusted from the year-end report 2013 and now includes remeasurement that is considered attributable to the fourth quarter of 2013.
Accounting principles
Fouriertransform applies the International Financial
Reporting Standards (IFRS) when preparing the financial
statements for the Group. Fouriertransform meets the
IFRS definition of an investment company and does not
therefore prepare consolidated financial statements.
Fouriertransform as an investment company (the Group)
instead prepares separate financial statements according
to IFRS, where measurement of financial investments,
(investments in portfolio companies and investments in
securities) is based on the fair value with changes in value
recognized through profit or loss.
Comments on 2014 income statement
The net result for the year after tax was SEK -90.9 million
(131.4).
The company’s costs totaling SEK 62.7 million (58.6)
mainly relate to employee benefit expenses, project and
consultancy expenses, and costs relating to investments
in portfolio companies. The cost increase is due to the
higher number of investments made during the period.
Net financial income amounted to SEK 91.7 million
(108.9) which was mainly affected by dividends from
fixed income and mutual funds of SEK 45.9 million and
capital gains of SEK 10.1 million from the sale of mutual
and fixed income funds. It also includes an effect in the
amount of SEK 29.1 million (-1.3) of a remeasurement
of investments in securities for the full year.
As of December 31, the portfolio companies have been
measured at fair value in accordance with IFRS, which in
2014 resulted in a downward value adjustment of -7.3
percent, equivalent to SEK -107.1 million. The estimated fair
value of investments in securities amounts to SEK 1,360.8
million. The remeasurement is a combination of valuation
decreases and increases for portfolio companies relating to
the companies’ operational and financial development.
Since the start in 2009 Fouriertransform has invested
a total of SEK 1,366 million, which, compared with the
assessed fair value of the existing portfolio, SEK 1,360.8
million, and repaid capital from the portfolio companies,
SEK 38.3 million, represents an increase in value of
invested capital of around 2 percent.
31
32
Financial statements
BUSINESS ACTIVITIES 2014
Cash flow statement
Investment company, SEK 000s
Full year 2014
Full year 2013
-171,780
42,329
Operating activities
Operating profit/loss
Adjustments for items not affecting cash flow
Depreciation and write-downs
Interest income, portfolio companies
Realized profit/loss, portfolio companies
Unrealized profit/loss, portfolio companies
Interest received, bank balances
Interest paid
999
929
-5,314
-3,026
3,263
-
112,019
-76,554
282
378
-204
-94
Income tax paid
-19,710
-11,964
Cash flow from operating activities before changes
in working capital
-80,445
-48,002
Increase/decrease in trade receivables
2,088
-2,500
Increase/decrease in other current receivables
4,639
665
Increase/decrease in accounts payable
1,714
-146
Changes in working capital
Increase/decrease in other current liabilities
Cash flow from operating activities
-31,544
2,006
-103,548
-47,977
Investment activities
Investments in property, plant and equipment
Investments in shares in portfolio companies
Divestment of shares in portfolio companies
Loans to portfolio companies
Repayment of loans from portfolio companies
Change in investments in securities
Cash flow from investment activities
-256
-240
-140,171
-325,393
3,430
-
-258,530
-16,453
6,500
-
475,295
432,933
86,268
90,847
-
-
Financing activities
Cash flow from financing activities
Cash flow for the period
-17,281
42,870
Cash and bank balances at beginning of period
60,270
17,400
Cash and bank balances at end of period
42,989
60,270
Financial statements
BUSINESS ACTIVITIES 2014
Balance sheet and
changes in equity
Investment company, SEK 000s
December 31, 2014
December 31, 2013
1,208
1,951
1,099,463
986,214
89,386
37,686
ASSETS
Non-current assets
Property, plant and equipment
Equipment
Financial non-current assets
Investments in portfolio companies
Shares in portfolio companies
Receivables in portfolio companies
Convertible receivables in portfolio companies
Total investments in portfolio companies
Other non-current receivables
172,024
58,600
1,360,873
1,082,500
140
140
Total financial non-current assets
1,361,013
1,082,640
Total non-current assets
1,362,221
1,084,592
413
2,500
Current assets
Current receivables
Trade receivables
Other current receivables
6,831
3,082
Prepaid expenses and accrued income
2,936
9,197
10,180
14,779
Investments in securities
1,807,482
2,192,892
Cash and bank balances
42,989
60,270
Total current assets
1,860,651
2,267,941
Total assets
3,222,872
3,352,532
2,725,100
3,000,100
Total current receivables
EQUITY AND LIABILITIES
Share capital
Profit/loss brought forward including net profit/loss for the period
Total equity
466,915
282,825
3,192,015
3,282,925
Non-current liabilities
Other non-current liabilities
106
106
Deferred tax liabilities
12,582
6,177
Total non-current liabilities
12,688
6,283
Current liabilities
Accounts payable
3,992
2,278
Current tax liability
6,100
21,380
Other current liabilities
4,108
34,636
Accrued expenses
3,969
5,030
18,168
63,324
Total current liabilities
Total liabilities
Total equity and liabilities
30,857
69,607
3,222,872
3,352,532
Share capital
Profit/loss brought
forward including
profit/loss for the period
Total equity
3,000,100
151,454
3,151,554
-
131,372
131,372
Equity, December 31, 2013
3,000,100
282,825
3,282,925
Equity, January 1, 2014
3,000,100
282,825
3,282,925
-275,000
275,000
-
-
-90,910
-90,910
2,725,100
466,915
3,192,015
Investment company, SEK 000s
Equity, January 1, 2013
Comprehensive income for the period
Reduction of share capital to non-restricted
reserves
Comprehensive income for the period
Equity, December 31, 2014
33
P ORT FOL IO COM PA N I E S
AS OF DECEMBER 2014
Alelion Batteries | Portfolio companies
BUSINESS ACTIVITIES 2014
Leading the transition to the superior
lithium ion technology
“We have taken another step towards being at the absolute
forefront in the transition from lead-acid batteries to the superior
lithium ion technology. Interest in and demand for lithium ion
batteries is increasing and we see great potential for commercial
and environmental gains.”
lars mila , ceo, alelion batteries
Company
Chairman of the Board
Business location
More information
Alelion Batteries AB
Jan Forsberg
Mölndal
alelionbatteries.com
Business activities
Alelion Batteries develops, manufactures and markets
complete energy storage systems based on the very latest
battery technology – currently lithium ion technology.
This is a battery technology that provides very high
energy density and operating time relative to weight,
which, combined with price, service life and being maintenance-free, are crucial factors. The technology under
the shell of a lithium ion battery is completely different
from and significantly more advanced than previous
battery technologies. For users this means greater ease of
handling and use, making this new technology very profitable in certain segments. The new technology is superior
from a sustainability perspective as well. Avoiding the use
of poisonous lead and sulphuric acid while reducing the
carbon footprint compared to older technologies means
significant environmental gains, at the same time as other
technical benefits increase cost effectiveness.
Alelion’s products are based on modular systems that
are adapted to optimize the customer’s applications or best
meet their needs. The lithium ion cells are produced by
external manufacturers located mainly in Asia, but battery
manufacturing and system integration with customer
applications take place at the company’s plant in Mölndal
and is also carried out by a Swedish contract manufacturer.
Alelion’s customers are both product manufacturers
and large battery end-users, mainly in Europe. The company focuses primarily on material handling applications where there is a significant demand for improved
performance, longer life and sustainable solutions.
The company is certified to ISO 9001 and ISO 14001.
Fouriertransform’s investment
Initial investment
% of votes
June 2010
71 %
Market
The technology shift from lead-acid to lithium ion
technology has started in the electric forklift truck
segment and interest and demand have increased
noticeably during the year in this segment
The global lead battery market for this segment
has annual sales of SEK 22 billion, of which the EU
is responsible for SEK 7 billion
Only a few competitors have finished developing
a limited number of battery types
Alelion was the first to offer a 24V forklift truck battery
for general use and now also has several 49V models
for specific forklift applications ready for launch
In addition to the pure financial benefits, the sustainability aspects play a clear role when potential customers
are considering switching to lithium ion technology.
Apart from eliminating the use of lead, using lithium
ion technology halves the energy losses compared to
lead-acid batteries
•
•
•
•
•
Significant events during the year
In 2014 for the first time, a full fleet of 17 new forklift
trucks of various models, all equipped with Alelion’s
lithium ion batteries, was delivered for use in a
customer’s brand new plant. The delivery took place in
April, the forklifts were immediately put into commission and the plant was in full production in August.
This was the first step towards the large delivery
volumes planned with this customer for 2015
Discussions are under way on delivery of batteries for
existing forklift trucks to move champagne for one
of the most famous champagne producers in France
A framework agreement was signed with one of the
world’s leading electric forklift truck manufacturers.
A number of joint development projects – both endcustomer specific and more general – have started.
Alelion’s batteries will be part of this manufacturer’s
product program in 2015
•
•
•
Phase: Early stage
Investment Director
Christian Zeuchner
35
36
Portfolio companies | Applied Nano Surfaces
BUSINESS ACTIVITIES 2014
Unique technology reduces friction
and wear
“During the year we intensified our partnership with Bodycote by signing
a license agreement, and we are very close to finalizing another license deal.
We are industrializing our products by starting series production
and we are reaching out to more customers. Meanwhile, we are continuing
our expansion by increasing our presence in the USA and Germany.”
nils edlund, ceo, applied nano surfaces
Company
Chairman of the Board
Business location
More information
Applied Nano Surfaces Sweden AB
Per Kågebjer
Uppsala
appliednanosurfaces.com
Business activities
Applied Nano Surfaces (ANS) is active in the field of
tribology and friction minimization. ANS has developed
methods for the cost-effective treatment of surfaces to
achieve low friction and less wear. The business model
involves offering products on a license basis and charging
for direct materials. ANS helps customers to integrate
the methods and products directly into their existing
production processes or to find solutions delivered by
ANS partners.
ANS Triboconditioning® is a method that gives
steel and cast iron components smoother surfaces and
a friction-reduction coating. This reduces energy consumption and thereby also energy costs. The treatment
is done mechanically using the same type of machinery
already used in production in turning, honing or
grinding processes etc. The cost of the treatment is
therefore low and it is easy to implement as a final
stage in existing production processes.
ANS Tricolit® is a spray-based friction-reduction
coating that can be applied to many different types of
materials, such as stainless steel, aluminum, steel and
plastic. Tricolit® is integrated into the customer’s production process or provided by a supplier. ANS works in
close cooperation with Bodycote, a company that offers
surface coating, heat treatment and hot isostatic pressing
to offer Tricolit® treatment to customers all around the
world. Tricolit® can also be combined with Bodycote’s
own offering to further broaden the application areas and
customer base.
ANS customers are in areas where energy losses or wear
on components is significant, such as in combustion
engines, plain bearings, compressors and pumps.
Market
ANS works with many of the world’s largest companies
in the automotive industry. Other important customer
segments include manufacturers of bearings, pumps,
rock drills and compressors
Because there are numerous application areas and
the volumes are large, the market potential for ANS
products is considerable. The ANS license model also
enables scalability and good profitability
Demand is driven by customer’s requiring increased
energy efficiency and by new environmental legislation
The competition mainly comes from traditional polishing options and from other types of surface coatings
•
•
•
•
Significant events during the year
ANS signed a license agreement with Bodycote and
produced joint offerings which combine Tricolit®
with Bodycote’s products
Further development of the cooperation with Gnutti
Carlo, one of the world’s leading suppliers of valve train
components, and with Scania for Triboconditioning®
of valve train components
Triboconditioning® of valve train components
Tricolit® was further developed to increase its
application areas and broaden the application and
customer base
Development of an optimized mechanical process for
Triboconditioning® of axles and internal geometries
that further improve efficiency in production and
cycle times
ANS established offices in the USA to serve customers
in the US and Canadian markets
•
•
•
•
•
•
Fouriertransform’s investment
Initial investment
% of votes
December 2010
35 %
Phase: Early stage
Investment Director
Daniel Riazzoli
APR Automation | Portfolio companies
BUSINESS ACTIVITIES 2014
Specialist in automation solutions
“APR Automation AB is an automation supplier focused
on helping companies increase their productivity.”
anders larsson, ceo, apr automation
Company
Chairman of the Board
Business location
More information
APR Automation AB
Tord Andersson
Arvika
apr-automation.se
Business activities
APR Automation is a supplier of automation equipment,
mainly to the Swedish market. The company also delivers
equipment to Poland, China, Portugal and Mexico. APR
specializes in delivering complete automation solutions
and has expertise in project management, design,
programming, manufacturing and assembly.
The projects are cross-functional and include all
disciplines to optimize the ultimate solution.
The company operates from Arvika at production
facilities that have technical equipment adapted for the
projects.
APR works in cooperation with the best-known component suppliers in automation solutions in the market.
Significant events during the year
In 2014 the company got new owners, a new board of
directors and a new CEO
The company was reorganized, the marketing department and project management were reinforced and
a new service department was set up
New investments in production capacity were made
in the form of a new edge folding machine and a water
jet cutter
A number of contract negotiations with new
customers began during the year
Several partnership and cooperation agreements
have been signed and will go into effect at the
beginning of 2015
•
•
•
•
•
Market
In 2013 the market for independent robotics integrators was worth around SEK 1.4 billion. The estimated
annual increase is around 4 percent
Today APR has the capacity to compete for
SEK 75 million
In the first part of 2014 the company’s order inflow
declined on the Swedish market, but activity picked up
again in the fourth quarter
Demand is increasing in the engineering industry for
system solutions for products weighing up to a tonne
•
•
•
•
Fouriertransform’s investment
Initial investment
% of votes
May 2014
49 %
Phase: Growth
Investment Director
Mikael Johnsson
APR
37
Automation AB
38
Portfolio companies | ARCCORE
BUSINESS ACTIVITIES 2014
ARCCORE’s international
expansion continues
“In 2014 ARCCORE won new contracts with international customers.
Due to the demand we have established a subsidiary in Germany.
ARCCORE’s sales increased by an annual rate of just over 100 percent
in 2014. Now we are looking towards Asia, where we see clear potential
to strengthen our market position.”
ulf ivarsson, acting ceo, arccore
Company
Chairman of the Board
Business location
More information
ARCCORE AB
Ulf Ivarsson
Gothenburg
arccore.com
Market
In 2014 the market for AUTOSAR products and associated services quickly became the established way of
working within software for the automotive industry
Essentially all automotive suppliers are now building
the next generation of electrical architecture based on
this standard, and demand for finished solutions has
increased significantly
This applies not only to products that strictly follow
the standard, but also adaptations made for the
various automotive manufacturers who are in a
period of transition as they switch from old solutions
to new AUTOSAR solutions
The increased demand on the product side is
paralleled by an increase in demand for AUTOSAR
expertise. This is specialist knowledge of the standard
itself as well as expertise in implementation and the
processes involved in working with AUTOSAR
•
•
Business activities
ARCCORE is a supplier of software products and specialist services for the automotive industry based on the
internationally-established AUTOSAR standard, which
describes software architecture for embedded electronic
systems in the automotive industry.
The product portfolio consists of software platforms
and associated tools, and is focused on developers of
embedded electronic systems that make the increasingly
advanced functions in today’s modern vehicles possible.
These functions are found in all types of vehicles – from
tractors and commercial vehicles to cars – and are essential in order to offer safe and more environmentally
sound vehicles.
ARCCORE also delivers services in the form of development projects. The projects vary in size and can range from
individual specialist services to a complete development
team that configures, integrates and implements an entire
electronic system for a car manufacturer or subcontractor.
ARCCORE’S customers include several types of players
– from automotive manufacturers and subcontractors to
research institutes and universities – who are directly or
indirectly involved in developing embedded electronic
systems for the automotive industry. Today ARCCORE
reaches a global market and has customers in Asia
and Europe ranging from small specialist companies
to multinational corporations.
•
•
Significant events during the year
ARCCORE GmbH was established in Munich to
handle sales in Germany and southern Europe
ARCCORE was selected to be on the list of the 33
most innovative companies in Sweden (Ny Teknik,
Affärsvärlden magazine)
The product portfolio was approved for use in series
production of cars for BMW and Volvo Cars
ARCCORE was chosen to manage the integration
process for the next generation active safety system
for one of the world’s largest subcontractors for the
automotive industry
•
•
•
•
Fouriertransform’s investment
Initial investment
% of votes
April 2012
38 %
Phase: Growth
Investment Director
Mikael Johnsson
CeDe Group | Portfolio companies
BUSINESS ACTIVITIES 2014
From idea to finished product
“With its solid engineering expertise, CeDe Group has established a strong
position. Working closely with Volvo CE and Atlas Copco has helped the
company develop new machinery solutions that offer both a better environment
and an improved working environment. Distributing specialized machinery
through Volvo CE’s global sales network is a great commercial opportunity.”
håkan johannesson, ceo, cede group
Company
Chairman of the Board
Business location
More information
CeDe Group AB
Carl Backman
Malmö
cede-group.se
Market
The market for specialized machinery is believed
to make up around 5 percent of the total standard
machinery market
CeDe Group is an authorized partner of Volvo CE
and preferred supplier to Atlas Copco Rock Drills
CeDe Group is also a supplier to leading companies
in material handling and the steel industry
•
•
Business activities
CeDe Group develops and manufactures in-house developed customizations of heavy vehicles and machinery.
Customization is always aimed at increasing the end
customer’s productivity and profitability. The customers
are mainly in material handling and in the mining and
construction sectors, and are often world leaders in
their field.
The company has 56 employees with cutting-edge
expertise in mechanics, hydraulics, electronics and
applications. This, in combination with the employees’
design, product development and production expertise,
enables the CeDe Group to create innovative solutions
with short lead times. The company works in close
cooperation with customers, which allows for great
flexibility during the course of the project.
The assignments involve everything from concept to
finished product and may also involve developing and
manufacturing specialized machinery for new application areas. The basic machine is usually an excavator
or wheel loader which is then modified and converted
into a multifunction machine. Examples include
construction equipment that runs on rails, rough
terrain forklift trucks, material handling equipment
and machinery for drilling and pile-driving.
•
Significant events during the year
The company made investments for future solutions
for the adaptation of equipment that runs on rails and
tunnel applications, as well as material handling for
Volvo’s new program series
A major project was started involving drilling and
pile-driving solutions based on a Volvo machine
CeDe Group signed an agreement to build customized
specialized machinery with unique concepts for
transportation solutions for heavy industry
The jointly-developed material handling machine
based on Volvo EW 210 was well received in the market
The company went through a process of adjustment
due to a decline in the mining and steel industries
during the year
•
•
•
•
•
Fouriertransform’s investment
Initial investment
% of votes
May 2012
49 %
Phase: Growth
Investment Director
Carl Backman
39
40
Portfolio companies | Elforest Technologies
BUSINESS ACTIVITIES 2014
Specialist expertise in electric
hybrid technology
“Elforest’s Elturbo enables the RPM of commercial vehicles to be reduced
while still allowing the most power-intensive functions to be performed
– both faster and more efficiently.”
per-anders bjuggstam , ceo, elforest technologies
Company
Chairman of the Board
Business location
More information
Elforest Technologies AB
Carl Kempe
Örnsköldsvik
elforest.se
Business activities
In 2006, in cooperation with the Swedish Energy Agency
and forest companies, Elforest was formed to develop
the world’s first forestry machine using electric hybrid
technology. Since that time, interest in electric hybrid
technology has increased significantly.
Elforest Technologies is now focusing on offering drive
technology of the future in the form of customer-specific
electric hybrid solutions for commercial vehicles. Elforest
Technologies adapts electric hybrid technology according
to the driving cycle and functionality of each vehicle to
achieve the best possible effect.
The company offers consulting services, electric
hybrid components and license agreements for the
patented technology the company has developed. The
electric hybrid technology is based on the company’s
“Elturbo patent.” This technology helps combustion
engines to be run at the optimal rotational speed.
Elturbo can also quickly handle the power peaks using
stored energy. It is also used as a generator and charges
the energy storage units whenever possible.
Elforest Technologies has also developed its own
monitoring and balancing system for batteries (BMS),
which can, among other things, balance the batteries
when the vehicle is running.
Elforest Technologies’ offering enables customers to
reduce the time it takes to develop new solutions,
improve commercial vehicle performance and optimize
energy consumption.
In 2014 Elforest Technologies and Ponsse – one of the
world’s largest manufacturers of forest machinery –
built an electric hybrid prototype using Elforest Technologies’ Elturbo. This technology has been installed in
a used Ergo model Ponsse harvester and in 2014 it was
driven by test drivers in the forest outside Örnsköldsvik.
“With Elturbo I can produce more,” says Tord
Ödmark, who has driven the electric hybrid harvester.
“The Elturbo makes the machine faster and easier to
operate. Thanks to the lower RPM, I’m not as tired at the
end of my shift”.
Market
Elforest Technologies is focusing on the 5 to 30 tonne
commercial vehicle segment
The electric hybrid market for heavy vehicles has been
developed and hybrid technology has become an
important brand management factor for manufacturers
Automotive manufacturers in agriculture and forestry,
the mining industry, contracting, material handling and
logistics are indicating that they will be offering electric
or battery hybrid options within two or three years
The total market for commercial machinery is growing
by 5 to 10 percent a year
Installation in used commercial vehicles is possible
•
•
•
•
•
Significant events during the year
In 2014 Elforest continued to focus on Elturbo and
its electric hybrid technology consulting services
Prototype testing of commercial vehicles fitted
with Elturbo was conducted in cooperation with two
commercial vehicle manufacturers, with good results.
The projects are continuing in 2015
Further contract negotiations were conducted and
are continuing
•
•
•
Fouriertransform’s investment
Initial investment
% of votes
June 2010
61 %
Phase: Early stage
Investment Director
Daniel Riazzoli
Inxide | Portfolio companies
BUSINESS ACTIVITIES 2014
Smart composite solutions
“Inxide’s main focus is composites adapted for the automotive industry’s
cost and volume requirements, as well as smart composite solutions that
reduce costs in the sports and consumer goods industries.”
björn wessman, ceo, inxide
Company
Chairman of the Board
Business location
More information
Inxide AB
Ulf Ahlén
Trollhättan
inxide.se
Market
Over the next five years the composite market is
expected to grow by 5 percent a year and in 2018 the
global market is expected to have sales of USD 34 billion
The fastest growing markets are aviation, transport
(cars and commercial vehicles), construction, wind
power and the sports industry
Growth in the automotive industry is expect
to increase from USD 2.8 billion in 2011 to
USD 4.8 billion by 2017
Inxide is primarily focusing on the transport and
sports sectors
The driving force in the transport sector is meeting
legislative and customer requirements to reduce
environmental impact
Driving forces for the sports sector are cost-effective
solutions to make smart composites available to more
customers
•
•
Business activities
Inxide is a cleantech company focusing on developing
and industrializing smart composite technologies. The
objective is to introduce composites in many different
sectors where they are regarded as an important solution
to meet the future requirements in legislation and from
customers. The main challenge is to identify and develop
processes that can meet the volume and cost requirements in the vehicle and sports industries. Inxide’s
technologies, which use the unique properties of the
composite materials, make it possible to dramatically
reduce environmental impact.
The technologies offered by Inxide use composite
materials in components more efficiently to achieve costeffective production of thermoplastic composites for the
main purpose of reducing weight. Inxide’s portfolio now
contains three unique technologies – X-TECH™, X-BIM™
and X-SHELL™. All are aimed at cost-effectively producing light-weight and robust solutions.
Inxide, which has development offices in Trollhättan
and Switzerland, works in close proximity to its customers to support their development work by analyzing
and applying the company’s unique composite expertise
in future applications. In addition to development
support, Inxide has production capacity in Sweden
and Tunisia.
•
•
•
•
Significant events during the year
In 2014 Inxide launched its first series-developed
product – a unique civil drone for the Swiss company
senseFly. Inxide is manufacturing the ultra-light base
structure using X-BIM™
In the spring of 2014 Inxide started working closely
with a Tunisian partner to produce products based on
X-BIM™ technology
Inxide received a government grant within the framework of the FFI Strategic Vehicle Research and Innovation program to work with Klippan Safety and Swerea
SICOMP to develop cargo area grids for cars made
from a composite using X-TECH™ technology
Inxide decided to invest in a third technology in order
to expand its offering – X-SHELL™ which is used for
fabric shell reinforced thermoplastic composites
•
•
•
•
Fouriertransform’s investment
Initial investment
% of votes
December 2011
98 %
Phase: Early stage
Investment Director
Per Nordberg
41
42
Portfolio companies | Jobro Plåtkomponenter
BUSINESS ACTIVITIES 2014
Specialist in complex
metal sheet molding
“Jobro, which has advanced expertise in tool making, materials science and
production engineering, is a full supplier of sheet metal prototypes and low
series production. Jobro handles everything in-house and therefore offers
short lead times and great flexibility.”
tobias ludvigsson, ceo, jobro plåtkomponenter
Company
Chairman of the Board
Business location
More information
Jobro Plåtkomponenter AB
Stig-Arne Blom
Ulricehamn
jobro.se
Business activities
Jobro is a specialist in producing prototypes of complex
sheet metal parts. Based on considerable expertise in
tool making, materials science and production engineering, Jobro offers its customers prototypes of a quality
comparable to components manufactured in series
production.
As a specialized prototype supplier, Jobro has optimized knowledge and processes to meet its customers’
needs during the prototype phase of development projects. Jobro’s production process also provides important
information on the production engineering aspects,
which enables customers to start series production more
quickly. The company has production lines to deliver
components made from high-strength, press-hardened
material as well as traditional cold-formed steel.
By handling all elements of the development phase
in-house, Jobro has short lead times and great flexibility
to make design changes to parts without incurring
significant costs for the changes.
Jobro’s goal is to establish itself as the leading prototype producer in northern Europe for complex sheet metal
parts by helping customers reach series production more
quickly, at a lower cost and with better quality.
Market
Jobro’s customers are in the engineering industry
with a focus on the automotive sector. The customers
are primarily in Sweden, but the company also delivers
to customers in Europe, mainly Germany
The prototype production market is fragmented and the
main competitors are series producers who, in addition
to their core business, manufacture prototypes
The number of prototypes manufactured is related to
the number of development projects being run by the
customers. The number of development projects is in
turn driven largely by legal requirements and regulations. Product life cycles are also getting shorter and
shorter, which puts pressure on OEMs to have more
efficient development processes. This is a competitive
advantage for a specialist like Jobro
The automotive industry is using more and more high
strength steel – so-called press-hardened steel – to
create cars that are light-weight, fuel efficient and safe
•
•
•
•
Significant events during the year
The emphasis on customer relations resulted in
several new customers
In April Tomas Karlsson was appointed Executive
Vice President for sales and marketing
A continued focus on Germany resulted in several new
customers in 2014
The process of establishing contacts in the UK began.
An additional 5-axis laser was installed
•
•
•
•
•
Fouriertransform’s investment
Initial investment
% of votes
May 2011
45 %
Phase: Growth
Investment Director
Carl Backman
LeanNova Engineering | Portfolio companies
BUSINESS ACTIVITIES 2014
Cutting-edge expertise
in vehicle development
“2014 was a very eventful year for LeanNova. We continued our
international expansion, opened new offices and secured several new
customers. In 2015 our strong growth will continue.”
tomas camén, ceo, leannova engineering
Company
Chairman of the Board
Business location
More information
LeanNova Engineering AB
Carl Backman
Trollhättan
leannova.se
Market
The global market in LeanNova’s sphere is expected
to reach SEK 85 billion, of which LeanNova has the
capacity to compete for SEK 10 billion
The Swedish market in the area is expected to reach
SEK 4.5 billion, of which LeanNova has the capacity
to compete for SEK 1 billion
The goal for 2014 was to reach a 1.2-percent global
market share, and 15 percent of the Swedish market
share, for which LeanNova has the capacity to compete
Despite the competition in the market, LeanNova is
in a unique position due to the engineers’ many years
of OEM experience
The outsourcing trend for turnkey solutions is working
in LeanNova’s favor
•
•
Business activities
LeanNova is a consulting company that focuses on
product development in the automotive industry.
The company offers its customers cutting-edge expertise
to develop and integrate systems and properties into
complete vehicles. Most of the customers are in Sweden,
the UK and China.
During development work the engineers work across
the different systems and properties for optimal requirement compliance, design and products. With access to
test labs, LeanNova is also able to conduct testing and
any necessary analysis.
LeanNova is specialized in delivering turnkey product
development solutions – from concept to finished product. The focus is on turnkey assignments carried out at
LeanNova’s offices. This utilizes the company’s broad
expertise and OEM experience to optimize customer
benefits. Virtual development is an important priority.
LeanNova’s operations are characterized by a longterm perspective. The company recruits recent graduates
as well as experienced engineers with cutting edge
expertise, participates in research projects and offers
many thesis project opportunities for students.
Working actively with sustainability is a priority
for LeanNova, and in 2014 preparations were made
for ISO 9001 and ISO 14001 certification.
•
•
•
Significant events during the year
The office in Shanghai, China, was built up
A new satellite office was opened in Lindholmen
Science Park, Gothenburg
The subsidiary, LeanNova Engineering UK Ltd, and
an office in Coventry, UK were established
Business relationships were intensified and large
turnkey solution inquiries were received from several
customers
An extensive adaptation for new assignments and
customers was implemented after a major customer
cancelled a contract due to financial problems
Sales in 2014 amounted to around SEK 250 million
•
•
•
•
•
•
Fouriertransform’s investment
Initial investment
% of votes
January 2012
99 %
Phase: Growth
Investment Director
Carl Backman
43
44
Portfolio companies | Max Truck
BUSINESS ACTIVITIES 2014
Now delivered to customers
in Sweden and Europe
“In our new forklift, Maxtruck 2T, customers have a unique tool for their
production processes. It simplifies logistics in small spaces at the same time
as the new technology is environmentally sound as it offers higher efficiency
and therefore also lower energy consumption.”
conny lindström , ceo, max truck
Company
Chairman of the Board
Business location
More information
Max Truck AB
Stig-Arne Blom
Östersund
maxtruck.se
Business activities
Max Truck has developed an entirely new type of forklift
truck that can be driven in any direction directly from a
stationary position. It is powered by conventional forklift batteries, but since the transmission is significantly
more efficient than in a conventional forklift and there
are minimal losses to the hydraulics system, the forklift
is equipped with relatively small batteries.
Despite this, the forklift truck can be driven continuously for a full work day on one charge. The forklift is
built for indoor operation for small or medium-sized
companies.
Forklifts have been delivered to end-customers in
both Sweden and elsewhere in Europe. The forklift is
built from standard products and a number of patented
solutions, which guarantees its market launch. The
major advantages are that it can handle long loads in
tight spaces, it can replace several specialized forklifts
in the production process and has new environmentally
sound technology. The lifting capacity is 2 tonnes up
to 4.2 meters high. Thanks to its telescopic lift, the truck
can lift items up to two meters in front of its chassis.
Maxtruck 2T has seven approved patents.
Market
The market is global, including nations not yet fully
industrialized, where handling goods for forwarding
is done across large surface areas and where Maxtruck
2T, due to its maneuverability, visibility and range,
can be an advantage
The forklift truck functions like a conventional
counterbalanced forklift, but when its tools are
switched, it can handle tasks normally carried out
by 4-way forklifts and is thereby suited for a wider
market beyond the counterbalanced truck market
The market for new forklift truck sales in the 1.5
to 2.0 tonne range in Europe is around 55,000 trucks
a year
•
•
•
Significant events during the year
Maxtruck 2T was delivered to end-customers in
Sweden and elsewhere in Europe
Marketing in Sweden and for exports began
The forklift truck was presented at the LogiMAT 2014
trade show in Stuttgart and at CeMAT in Hannover
•
•
•
Fouriertransform’s investment
Initial investment
% of votes
July 2010
35 %
Phase: Early stage
Investment Director
Carl Backman
Norstel | Portfolio companies
BUSINESS ACTIVITIES 2014
Pioneer in silicon carbide for
energy-efficient electronics
“As one of the few independent suppliers with its own process technology
and high product quality, Norstel is an obvious choice of partner for highefficiency electronic components. Accordingly, we now have relationships
with all major companies manufacturing diodes or transistors with
silicon carbide”
per zellman, ceo, norstel
Company
Chairman of the Board
Business location
More information
Norstel AB
Jan-Eric Bergström
Norrköping
norstel.com
Business activities
Norstel develops and manufactures silicon carbide in the
form of crystals, wafers and coatings. The main products
are wafers as substrates for the manufacture of diodes
and transistors for energy-efficient electronics. The
customers are mainly large international electronic
companies, but Norstel’s products and services are also
in demand among universities and research institutes
around the world. The company also delivers materials
for gemstone production. Here, the high purity of the
silicon carbide material offers a cost-effective and
environmentally sound alternative to diamonds.
The company operates at a plant in Norrköping
which was custom built for silicon carbide manufacturing.
The building is designed for an optimal production flow
in a cleanroom environment taking into consideration
important safety and environmental aspects. The company has considerable experience in developing and
manufacturing silicon carbide. Norstel’s employees have
published more than 200 articles and together have more
than 100 years of professional experience in the field.
Market
Silicon carbide is an alternative to silicon, which is
currently the most common material in electronic
components
Silicon carbide’s main advantage is that it results in
highly efficient electronic components that can be
used to save energy, space and weight, or withstand
high temperatures
•
•
•A power converter with silicon carbide components
typically has 50-percent less energy loss than the
same equipment made with silicon components
Application areas are mainly energy-saving electric
power converters for heat pumps, solar energy, wind
power, trains, and electric and hybrid vehicles
Toyota announced in May 2014 that it intends
to introduce a power converter containing silicon
carbide in its electric and hybrid cars, and will begin
field tests in 2015
In 2014 Mitsubishi announced its first order of
driveline systems containing silicon carbide for trains.
A subway line in Tokyo is already operating with trains
operated with silicon carbide converters
•
•
•
Significant events during the year
Increased investment in marketing and sales
Deliveries of substrates for power and high-frequency
electronics increased
Leading component manufacturers confirmed that
Norstel’s silicon carbide substrates are equal with or
superior in quality to those of the main competitors
New evaluation projects were established with several
electronics components manufacturers
Cooperation on a joint international marketing
initiative for epitaxial solutions began with the
Swedish company Ascatron
Test deliveries of gemstone materials were made
to several new customers
Product development work continued to further improve
material purity and increase substrate diameter
•
•
•
•
•
•
•
Fouriertransform’s investment
Initial investment
% of votes
February 2010
100 %
Phase: Early stage
Investment Director
Christian Zeuchner
45
46
Portfolio companies | Osstell
BUSINESS ACTIVITIES 2014
Global market leader in measuring
the stability of dental implants
“The demographic trend of an aging population is increasing the demand
for dental implants and diagnostics associated with the procedure.
For Osstell, this means that the market can be expected to grow in the
years ahead.”
jonas ehinger , ceo, osstell
Company
Chairman of the Board
Business location
More information
Osstell AB
Carsten Browall
Gothenburg
osstell.com
Market
Osstell is represented today in 55–60 markets and has
strong support from leading opinion-leaders in the
implant market
With its head office in Sweden, Osstell also has an
office in the USA and is represented in Germany
Every year around 10 million dental implant procedures are carried out globally
Osstell has a market penetration of around 5 percent,
calculated as the percentage of dentists who perform
implant procedures and have purchased the instrument
Osstell’s products offer superior customer benefits,
which have been verified in more than 600 clinical
studies. The benefits include reduced treatment
periods, the ability to better treat high-risk patients
and fewer unsuccessful implant procedures
The European market has good growth potential, but
the greatest potential is in the USA and Asian markets
More and more patients are getting implants and can
afford treatment
•
•
Business activities
Osstell is a Swedish medical technology company
founded in 1999. The company has 15 employees and
had sales of SEK 39 million in 2014.
Osstell develops, manufactures and sells an instrument and accessories used to measure dental implant
stability. Dental implants consist of titanium screws that
are inserted in a hole drilled in the jawbone. To ensure
that the implant has fused properly with the jawbone,
a peg is attached to the implant. Osstell’s instrument,
called Osstell ISQ, measures the subsequent stability of
the implant.
Osstell’s technology enables a contact-free method of
measurement for implants to be used, which is very significant. The ISQ instrument can measure how firmly the
implant is attached without touching the actual implant.
This means that measurement can take place without
interfering with the implant or osseointegration, and
without the risk of the implant. Osstell’s goal is to
improve implant treatment globally.
The method and the technology are globally patented
and the instruments are manufactured in a factory in
Kungsbacka.
Marketing to customers takes place at conferences,
trade fairs, through participation in scientific studies
and through local distributors who market the products
to end-customers, i.e. dental clinics and dentists who
perform implant procedures. Osstell’s geographical
market is worldwide.
•
•
•
•
•
Significant events during the year
When Fouriertransform went in as an owner, a highly
qualified board of directors was assembled for the company. Several key talents were recruited to realize the
company’s strategy going forward, and the company
has made significant progress in product development
Osstell signed important distributor agreements with
Henry Schein in the USA and with Osstem in China
The next generation product was developed in 2014
and will be launched in 2015. The current generation
was launched in 2009
Sales growth in 2014 was around 10 percent
•
•
•
•
Fouriertransform’s investment
Initial investment
% of votes
March 2014
36 %
Phase: Growth
Investment Director
Carl Backman
Pelagicore | Portfolio companies
BUSINESS ACTIVITIES 2014
Putting stunning user ­
experiences on the road
“Pelagicore makes sure that our clients develop In-Vehicle Infotainment (IVI)
Systems with stunning user experiences. Leveraging Open Source software,
we offer car makers the opportunity to control their software platforms and
reduce and re-use software investments delivering more innovations to their
customers.”
alwin bakkenes , ceo, pelagicore
Company
Chairman of the Board
Business location
More information
Pelagicore AB
Hans Wirfelt
Gothenburg
pelagicore.com
Business activities
Pelagicore enables the automotive industry to design
and develop infotainment with richer user experiences,
in-line with the next generation of mobile phones. The
company delivers software platforms and development
services for the development of In-Vehicle Infotainment
(IVI) systems.
IVI systems today compete with the user experiences
of mobile phones and tablets. Bringing richer fluid, and
fully connected user experiences into a car environment
whilst fully integrating with critical in-vehicle functionality is changing the requirements on the traditional
supply base. Pelagicore works directly with carmakers
enabling them to take control of their supplier ecosystem and increase innovation and time to market.
Pelagicore has unique competence from silicon to
pixel enabling the company to work directly and strategically with both the designers of next generation user
experience concepts and suppliers of underlying hardware components. Together with a comprehensive
product portfolio and engineering services, Pelagicore
is uniquely positioned in this fast changing market.
A significant portion of Pelagicore’s business comes
from joint advanced engineering projects with carmakers,
technology partners and hardware suppliers. Through
these projects the company innovates and delivers
solutions supporting future autonomously driving,
environmentally friendly vehicles.
Pelagicore is a driving partner in the GENIVI Alliance,
which aims to standardize the usage of Linux in IVI
systems through specification, development and the use
of Open Source Software. GENIVI has over 170 members
including leading carmakers such as BMW, Daimler, and
Volvo, and provides a strong network. Amongst other
positions, Pelagicore is an elected member of the Board
of Directors of the GENIVI Alliance and manages the
Open Source community around the GENIVI projects.
Market
The market for IVI systems is growing explosively
from around 40 million units in 2013 to over
120 million by 2020 (source: IHS 2013)
The market share for Linux-based systems is expected
to increase from 1 percent in 2013 to over 40 percent
by 2020 and GENIVI based systems are expected to
lead this development (source: IHS 2013)
During 2014 new Linux based infotainment systems
were launched on the market, for example by BMW,
Nissan, Toyota and Lexus
•
•
•
Significant events during the year
Pelagicore signed contracts for the delivery of its
products for series production in 2016
Pelagicore signed strategic contracts for the supply of
services and products to two major premium carmakers
Pelagicore developed and demonstrated automotive
technologies with leading silicon vendors such as
NVIDIA and Renesas
Pelagicore won the Volvo Car Corporation Challenge
UX for developing the best interaction concept for
future autonomously driving Volvo cars
Pelagicore open-sourced products and components to
support the broader adoption of Open Source based
IVI systems such as the GENIVI EAVB project and
Qml Live tooling
•
•
•
•
•
Fouriertransform’s investment
Initial investment
% of votes
September 2011
64 %
Phase: Early stage
Investment Director
Christian Zeuchner
47
48
Portfolio companies | Pelly
BUSINESS ACTIVITIES 2014
Attractive, functional and high-quality
storage solutions for the home
“In 2014 we secured our biggest order in the company’s history
thanks to our automation expertise, and active and constant efforts
to reduce costs.”
stefan jarbratt, ceo, pelly
Company
Chairman of the Board
Business location
More information
Pelly AB
Carl Backman
Hillerstorp
pelly.se
Market
The storage market is growing steadily, mainly driven
by urbanization in society which is creating a demand
for better storage solutions
The competition in the global market for storage solutions is tough and it is an advantage to have a local
presence and understand consumer needs
Combining design with functionality is increasingly
important
Pelly is engaged in B2B sales. The company is one of
the leading suppliers in this segment in the Nordic
region for interior design and home storage products
with around 45 percent of the market
The customers are leading manufacturers of kitchen
and closet cabinetry
The company sells sliding doors and storage solutions
in the Swedish and Nordic markets under the brands
Mirro and Pelly System. The customers are retail
chains and independent retailers
The products are also sold successfully in the B2B
market to large construction companies and house
manufacturers
•
•
Business activities
The company was founded in 1947 and its base and origins
are in Hillerstorp in Småland. Production takes place in
Hillerstorp and in Kaunas in Lithuania. Based on many
years of experience, the Pelly Group has created worldleading production technology that can be used in a
number of areas. Through close cooperation with key
customers and by offering high-quality products and
a highly-automated production apparatus, the company
has established itself as a leading supplier in the furniture
industry in the Nordic region and elsewhere in Europe,
and is well-positioned for future expansion opportunities.
Pelly develops products based on Scandinavian
design traditions and the desire among Scandinavian
customers for simple and clean designs. The company’s
objective is to help create smart and functional storage
solutions for the home. The products help bring order to
kitchens, bathrooms and closets. The focus is good functionality without compromising on design and aesthetics. The brands Pelly and Mirro own several protected
designs and patents for a number of storage products.
Pelly’s customers are in the B2B segment in the kitchen and closet industry. Mirro sells its products to endconsumers through distributors.
The company’s business operations are characterized
by an approach to sustainability where sustainability
and profitability go hand in hand. Here, the priorities
include minimizing the use of materials and resources,
and improving transport efficiency. Wood residues from
the production process are made into pellets which are
then sold to thermal power stations.
•
•
•
•
•
Significant events during the year
The Pelly Group was acquired by Fouriertransform
A new project was launched with IKEA, the largest in
Pelly’s history
The Pelly Baltic production facility in Lithuania was
expanded
A new development and design department was
established in Sweden and a development department
was established in Lithuania
•
•
•
•
Fouriertransform’s investment
Initial investment
% of votes
March 2014
37 %
Phase: Growth
Investment Director
Carl Backman
PowerCell Sweden | Portfolio companies
BUSINESS ACTIVITIES 2014
The cleanest system so far
to convert diesel into electricity
“Our products enable us to offer the most environmentally sound
and efficient way to generate electricity from diesel and other similar
renewable and fossil fuels.”
magnus henell , ceo, powercell sweden
Company
Chairman of the Board
Business location
More information
PowerCell Sweden AB
Per Wassén
Gothenburg
powercell.se
Business activities
PowerCell develops auxiliary power units (APUs) that
produce electricity from various types of fuel. The units
consist of a fuel reformer and fuel cell stacks. The fuel
reformer makes hydrogen from commercially available
fuels such as diesel, gasoline and biofuel. The fuel cell
stacks then convert the hydrogen into green electricity
and the only waste products are water and carbon dioxide.
The advantages are significantly lower carbon dioxide
emissions compared to conventional petrol or diesel
run power units due to lower fuel consumption, and no
emissions of particles, carbon monoxide, sulfur or nitric
oxide. From a commercial perspective, the significant
reduction in the overall cost of energy production of
30–40 percent is an important advantage.
PowerCell has developed the fuel cell stacks in-house
that are in the company’s APUs and they are being
produced in small-scale series production.
Market
PowerCell’s stationary APU will be used for longlasting backup (>24 hours) or as a primary power
source for telecom base stations with no or poor power
supplies. In Africa alone there are around 200,000 base
stations, 70–80 percent of which have no or poor
power supplies
PowerCell’s mobile APU for commercial vehicles will
be used to significantly reduce emissions when the
vehicles are stationary. When an APU is used there is
no need for idling, which means fuel consumption can
be reduced by up to 75 percent and toxic emissions
eliminated. In North America alone there is a fleet of
around 700,000 suitable vehicles and new production
of around 100,000–125,000 vehicles annually
PowerCell’s fuel stacks are designed to be used with
different types of fuels, such as pure hydrogen gas and
reformate from other fuels – both renewable and fossil
fuels. This flexibility means that a large portion of the
total fuel cell market is a potential market for PowerCell
•
•
•
Significant events during the year
The first test of the PowerPac power unit was carried
out in an actual environment in cooperation with a
customer at a telecom base station in South Africa
PowerCell won the Swedish Private Equity & Venture
Capital Association (SVCA) award for the most socially
beneficial investment in 2014
PowerCell expanded its international presence by
establishing PowerCell Korea Inc. in the South Korean
capital of Seoul in November to be better able to
market to the products in Asia
PowerCell was listed on the First North market in connection with a new share issue worth SEK 108 million
•
•
•
•
Fouriertransform’s investment
Initial investment
% of votes
October 2009
23 %
Phase: Early stage
Investment Director
Mattias Silfversparre
49
50
Portfolio companies | Rototest International
BUSINESS ACTIVITIES 2014
Setting a new standard for testing
and developing vehicle drivelines
“The ever accelerating pace of automotive development brings shorter product
cycles and more variations. Rototest’s innovative technology is helping vehicle
engineers around the world meet the time demands of today and tomorrow,
while delivering the right quality combined with higher cost-efficiency.”
christian engström , ceo, rototest international
Company
Chairman of the Board
Business location
More information
Rototest International AB
Tommy Magnusson
Rönninge
rototest.com
Market
The automotive industry spends SEK 5 billion a year
on testing equipment and services (estimated to
increase annually by around 3 percent)
The market today is dominated by two actors, both
delivering traditional technology using rolling roads
Traditional technology cannot deliver the repeatability, measurement accuracy and flexibility that
today’s and tomorrow’s drivelines require –
hub-mounted technology is needed for that
Rototest’s hub-mounted technology is patented and
have been installed in more than 100 systems around
the globe
One and the same Rototest system can, in a flexible
way, test everything from individual components to
partial systems and whole vehicles
•
•
Business activities
Rototest International is a global supplier of highperformance and patented solutions for testing vehicles
and their drivelines. Applications are mainly in research
and development in the automotive industry and at
universities, but are also in the areas of quality assurance, racing and aftermarket. Unlike traditional testing
technology which uses “rolling roads,” Rototest offers
hub-mounted dynamometers which provide much
higher measurement accuracy, better repeatability,
greater flexibility and higher cost-efficiency.
Rototest’s head office is in Rönninge, south of
Stockholm. The company offers a full range of flexible
vehicle testing systems for applications from traditional
vehicle testing to the development of the next generation
of electric/hybrid super sports cars.
•
•
•
Significant events during the year
Rototest added several new models to its ROTOTEST
Energy industrial, hub-mounted dynamometer series,
offering increased capacity, among other benefits,
as well as customized models for applications such
as NVH (noise, vibration and harshness) and climate
The sales organization was significantly reinforced
with the addition of both internal and external
personnel and expansion of the company’s partner
network both to the east and west. Negotiations are
under way to continue the expansion of the partner
network in expansive and geographically challenging
markets
The company has ongoing projects with several
well-known OEMs and in 2014 secured prestigious
orders in the USA, among other markets
•
•
•
Fouriertransform’s investment
Initial investment
% of votes
July 2013
49 %
Phase: Growth
Investment Director
Christian Zeuchner
SciBase | Portfolio companies
BUSINESS ACTIVITIES 2014
Unique method for detecting
malignant melanoma
“Our cooperation with Fouriertransform, which began last year,
has been very significant in successfully launching SciBase into the
commercialization phase. We are now looking forward to building
up the company together for the future.”
simon grant, ceo, scibase
Company
Chairman of the Board
Business location
More information
SciBase AB
Tord Lendau
Stockholm
scibase.se
Business activities
SciBase, which started as a research project at Karolinska Institutet, has developed a unique product called
Nevisense for the detection of malignant melanoma.
The patented Nevisense diagnosis technique sends
electrical impulses at different frequencies through the
area of skin under examination. An algorithm trained to
identify malignancy provides information within a few
seconds on the extent of the malignancy of the lesion.
The method has demonstrated very good results in
extensive clinical studies, the most recent of which conducted at 22 clinics in Europe and the USA constitutes
the largest study ever carried out in this field.
The new technique gives physicians a tool that can
objectively measure the risk of changes in lesions being
malignant. The method will save costs in the care chain
as unnecessary and costly procedures and analysis can
be avoided. At the same time, the technique can identify
melanoma that may be wrongly diagnosed with the
visual methods used today. The results from the studies
underscore the fact that Nevisense can contribute to
easier and earlier detection of malignant melanoma and
thereby potentially save lives.
Market
Malignant melanoma is the fastest growing form of
cancer and, if not detected in time, is also one of the
deadliest. Early diagnosis is critical for the patient’s
survival. There are also major healthcare cost savings
to be made with more reliable diagnosis
Worldwide, around 160,000 new cases of melanoma
are diagnosed every year, and in Sweden alone, around
3,300 cases a year are reported
Annually, some 50–60 million examinations are
carried out globally and around 10 percent of skin
lesions are removed and sent for analysis
Notably, more than 95 percent of these are completely
benign, which represents an unnecessary cost burden
in the healthcare system
•
•
•
•
Significant events during the year
The company’s major international clinical study
was published in the respected British Journal of
Dermatology (BJD). Nevisense, as the first non-visual
tool for melanoma detection, has already attracted
a lot of interest among dermatologists. SciBase is
expecting the publication of this important study in
BJD to lead to the widespread use of Nevisense in the
often difficult process of early malignant melanoma
detection
An initial customer base was established in the
Nordic region, Germany and Australia
Market expansion began with launches in the UK
and Belgium
•
•
•
Fouriertransform’s investment
Initial investment
% of votes
December 2013
20 %
Phase: Early stage
Investment Director
Per Aniansson
51
52
Portfolio companies | Smart Eye
BUSINESS ACTIVITIES 2014
Technology that keeps track
of where you’re looking
“Cars and computers of the future will know where their user is looking.
This will be possible thanks to cutting-edge technology developed in
Sweden. The result will be safer cars, faster user interfaces and entirely
new applications.”
martin krantz , ceo, smart eye
Company
Chairman of the Board
Business location
More information
Smart Eye AB
Mats Krantz
Gothenburg
smarteye.se
Business activities
Smart Eye is the world-leading supplier of eye tracking
technology in the automotive and aviation industry
segments. The company sells systems that, in real-time,
measure the behavior of the eye through advanced
image processing algorithms. Smart Eye develops and
sells systems, software and services to OEM partners.
Around 90 percent of sales are exports.
The main products are Smart Eye Pro, which is
mainly sold to simulators and research laboratories
around the world, and AntiSleep and Blackbird for
advanced systems in vehicles. In 2014 the company
launched an additional product, Aurora, a versatile eye
tracker offering high performance in a small format. In
addition to measuring the position of the eye and where
it is looking, the products also track head position,
translation, how wide the eye lid is open and the size
of the pupil. From this basic data, more detailed
measurements can be extra-polated to determine,
for example, fatigue, visual distraction and stress.
Smart Eye Pro is the only system in the world that can
take measurements with up to eight cameras simultaneously and thereby meet the requirements of the most
advanced research simulators. The system can function
in any light levels – from a dark simulator to an aircraft
cockpit.
Market
Smart Eye is now firmly established in the eye tracking
research market
50 percent of sales go to the automotive industry
and 30 percent to the aviation industry. More than
90 percent of sales are exports
New camera technology is making it possible for a
new generation of eye trackers to take over the market
They are smaller, cheaper and more energy-efficient
As advances are made in camera development, eye
tracking technology is growing and is now on its way
into a mass market at an accelerated pace. Within
a few years, eye tracking will be found in both the
automotive industry and in consumer electronics
Smart Eye is one player in an exclusive group of
international companies positioned for the expansion
in the years ahead
•
•
•
•
•
Significant events during the year
In 2014 the automotive OEM segment expanded as
more and more car manufacturers started developing
new products that include eye tracking
A new versatile eye tracker dedicated to neurological
applications was launched
A new embedded eye tracker aimed at the automotive
industry was developed
•
•
•
Fouriertransform’s investment
Initial investment
% of votes
February 2013
17 %
Phase: Growth
Investment Director
Mikael Johnsson
SMP Parts | Portfolio companies
BUSINESS ACTIVITIES 2014
SMP Parts on the offensive
“A fantastic company with untapped potential. The company is underinvested on the marketing side, but is otherwise very well-managed.
By investing in sales activities, SMP will grow from an order-receiving
to a selling organization, and that’s when things will really happen.”
lars -erik klas , ceo, smp parts
Company
Chairman of the Board
Business location
More information
SMP Parts AB
Finn Johnsson
Ilsbo
smpparts.com/sv
Business activities
SMP Parts switched owners at the beginning of July 2014.
The new owner constellation has worked with company
management to chisel out a strategic plan for the next
four years, with investment in new markets, primarily in
Europe, at the top of the agenda.
The company manufactures tools for excavators and is
a market leader in buckets and couplers mainly in Sweden
and Norway, where products that are highly robust and
hardwearing are required due to the Nordic ground conditions. The company also has a third product line in the
form of a tiltrotator marketed under the name Swingotilt®. The market share for this product is significantly
smaller and it is salable in all geographical markets. Until
recently, it was a product unique to the Nordic region, but
over the past few years it began to be established in other
Northern European countries and to some extent in other
continents as well. The company’s future expansion will
mainly focus on this product area and will be complemented by a simpler, locally-produced range of excavator buckets. Over the next few years the company will increase its
marketing activities in its current markets – Sweden,
Norway, Germany and the Netherlands/Belgium – and will
establish itself in Finland, Denmark, France and the UK.
Market
The market was relatively stable in 2014 and is expected
to remain stable in 2015, despite the tough situation in
the mining industry in recent years. Investments in
infrastructure projects in the respective countries as
well as EU-funded investments will have a positive
impact on the sector in the future.
•
•Today, the company has two main markets – Sweden
and Norway, where it is a market leader – but the product range is also well-suited to the Finnish market
The Swingotilt® product line is growing in the Northern
European market and SMP is involved in driving this
development, mainly in the Netherlands/Belgium and
in Germany. The product has significant potential here;
in the Nordic region nine out of ten excavators have
a tiltrotator, while the corresponding figure in the rest
of the European markets is less than 5 percent
SMP is competing globally with Engcon, Indexator,
Steelwrist, Nox and HKS in the tiltrotator market and is
contending with numerous local bucket manufacturers,
as well as low-price bucket imports from low-cost countries
such as China, India, Turkey and the Baltic States
In 2014 SMP launched a mechanical secure quick
coupler – HardLock – which has already attracted a lot
of interest in the Nordic market, and which also has
the potential to break into the fragmented European
quick coupler market
•
•
•
Significant events during the year
At the beginning of the year, SMP launched its new secure
quick coupler called HardLock, an enhanced version of
a very common coupler found in the Nordic countries
The new graphic profile and a new website were
launched at the end of May at Maskinexpo and
attracted a lot of attention
The new owners – MVI and Fouriertransform – came
into the arena just before the summer. An interim
CEO, with many years of experience in the industry,
took the helm from day one. A new permanent CEO
will start on March 2, 2015
Significant effort was put into keeping the management
team intact following the takeover, and information on
the change in ownership was provided to the employees
the first week after the transaction was finalized
•
•
•
•
Fouriertransform’s investment
Initial investment
% of votes
June 2014
27 %
Phase: Growth
Investment Director
Christian Zeuchner
53
54
Portfolio companies | TitanX
BUSINESS ACTIVITIES 2014
Global supplier of engine and
oil cooling solutions
“Our vision is to be the leading supplier of cooling technology for engines
and drivelines for commercial vehicles and diesel-run generator units.”
stefan nordström , ceo, titanx
Company
Chairman of the Board
Business location
More information
TitanX
Tryggve Sthen
Gothenburg
titanx.com
Business activities
TitanX Engine Cooling (TitanX) is a global supplier of
engine and oil cooling solutions for commercial vehicles,
i.e. trucks, busses, heavy commercial vehicles and
dieselrun power generators. TitanX’s customers are
globally well-established OEMs such as Volvo, Daimler,
Scania, Iveco etc. Manufacturing takes place in Mjällby
and Linköping (Sweden), Jamestown (New York, USA)
and in Jaguariúna (Brazil).
Engine and oil cooling solutions are strategic components in commercial vehicles and are growing in significance for customers as the ever stricter environmental
emissions requirements in all markets necessitate more
cooling in order to lower vehicle fuel consumption.
Significant events during the year
TitanX received an important order from Fiat Power
Trains for diesel-run power generators
The company developed a new market for transmission
oil coolers with Volvo Group in North America
Production began on engine cooling modules for
Volvo Trucks’ new heavy commercial vehicle program
in Europe. At the same time, the company has also
taken over volumes from Renault
The continuous efficiency improvement program
resulted in reduced costs during the year and contributed to positive development for the group despite
a shaky market
The projects for starting production in the company’s
own factories in Kunshan (China) and Saltillo (Mexico)
have progressed according to plan. Both factories will
be operational in the second half of 2015 and will
significantly improve the company’s growth potential
in new markets and its global competitiveness
•
•
•
•
•
Market
In 2014 there was uncertainty in the markets and volumes fluctuated greatly. During the spring, activity was
at a low level in Europe due to the pre-purchase effect
of the upcoming more stringent European emissions
legislation, Euro VI. The North American market
developed well, while the South American market fell
considerably
The age of truck fleets in Europe and North America
indicates growth over the next few years
Based on orders secured in recent years and the
company’s geographical expansion strategy,
a significantly strengthened global market position
is anticipated in the years ahead
•
•
•
Fouriertransform’s investment
Initial investment
% of votes
March 2013
40 %
Phase: Growth
Investment Director
Christian Zeuchner
Vicura | Portfolio companies
BUSINESS ACTIVITIES 2014
Developing driveline systems
of the future
“We experienced strong growth in our Systems and Controls
business areas in 2014.”
magnus lundblad, ceo, vicura
Company
Chairman of the Board
Business location
More information
Vicura AB
Sune Nilsson
Trollhättan
vicura.se
Business activities
Vicura is a high-tech company focused on developing
whole or parts of transmissions in the vehicles of the
future and for other industrial applications.
The transmission is part of a vehicle’s driveline
system in which there is development towards increased
integration between a vehicle’s various components
and systems. This development requires expertise in
developing driveline and control systems, which are
important and significant parts of Vicura’s business
and operational areas.
Market
The market for Vicura’s services is in a period of
strong growth. The automotive industry in particular
is constantly evolving and experiencing increasing
globalization. Efficiency improvement is also a
significant driving force
There is rapid developing in the environmental area
in which there are new efficiency requirements for
driveline and power transmission systems. In the
automotive industry there is fast development
towards hybrid systems in which fossil fuel powered
and electric powered engines and systems need to
work together
•
•
•Subcontractors to the automotive industry face major
challenges in offering attractive concepts in a global
perspective, while also being strong and active
partners locally where development work and
production meet
Vicura has retained its strong position in a competitive market as an actor with many years of experience
in development combined with production
•
Significant events during the year
Vicura’s role as a long-term partner to global
developers and manufacturers was successfully
strengthened
For Vicura’s business development in Sweden, the
company’s local presence and an established offering
developed in close cooperation with customers yielded
results in the form of more business transactions
and projects
Increased demand for software development helped
Vicura’s growth in the Controls business area
Vicura’s origins and base in West Sweden have led
to strong and intensified partnerships with an
OEM player
Increased demand in testing and verification provided
Vicura with good business for the company’s testing
and verification services
•
•
•
•
•
Fouriertransform’s investment
Initial investment
% of votes
January 2011
99 %
Phase: Growth
Investment Director
Carl Backman
55
56
Portfolio companies | ÅAC Microtec
BUSINESS ACTIVITIES 2014
Miniaturized and robust electronics
for small satellites and industry
“With our technology we develop and produce systems for the fast-growing
small satellite market. The paradigm shift from large to small satellites that
are both robust and cost-effective is opening up an entirely new market.”
mikael andersson, ceo, åac microtec
Company
Chairman of the Board
Business location
More information
ÅAC Microtec AB
Rolf Hallencreutz
Uppsala
aacmicrotec.com
Business activities
ÅAC Microtec develops and manufactures miniaturized
and robust electronics, mainly for space applications in
the form of small satellites, but also for complex industrial applications requiring advanced miniaturized
designs that can withstand challenges in extreme
environments.
A paradigm shift is currently under way in the satellite market from a few very large satellites to constellations of smaller ones. New technologies, including those
developed by ÅAC Microtec, are making the smaller
satellites better able to perform a variety of tasks in
areas such as environmental research and earth
observation.
ÅAC Microtec develops systems for power and data
management and also provides system integration
services to enable delivery of a complete satellite.
The company’s strength is developing small, robust
and inexpensive systems that allow individual countries
and enterprises to launch their own satellites.
The products are sold directly to the public and
private sectors through subsidiaries in the USA and
with the help of partners. The single largest market is
the USA, followed by Europe and Japan.
Market
The largest geostationary satellites weigh about
8,000 kg and cost around USD 200 million per satellite.
Only around ten of these satellites a year are launched
due to the high cost and complexity. This year around
200 small satellites will be launched, compared to
30 small satellites a year a couple of years ago. It is
estimated that in five years’ time around 500 small
satellites will be launched a year
Space Works’ market assessment is that by 2020
around 2,750 small satellites will have been launched
and the total value is estimated to increase from USD
600 million a year (2014) to USD 3 billion a year (2020)
•
•
Significant events during the year
The Swedish National Space Board decided to finance
a new Swedish satellite project called Mats. It is a
scientific satellite that will investigate waves in the
upper atmosphere and their impact on the climate.
Mats will be launched in 2017. Three research teams
and Swedish companies are working on Mats.
ÅAC Microtec and OHM will deliver the satellite bus
ÅAC Microtec is part of a project consortium
(FILMSS) which in July received a major order from
the NASA Ames research center in the USA worth
USD 270 million over five years. The US company
WYLE owns the contract and is the coordinating
company for the consortium. FILMSS project
consortium will deliver services and products to NASA
The subsidiary ÅAC Microtec Inc. in the USA was
formed
New distributor agreements were signed in Japan
and South Korea
•
•
•
•
Fouriertransform’s investment
Initial investment
% of votes
March 2014
49 %
Phase: Growth
Investment Director
Erik Sterner
CALENDAR
2015
FEBRUARY
2016
16
Year-End Report
MARCH
12
Formal Annual Report
APRIL
JULY
17
Semi-Annual Report
OCTOBER
29
FEBRUARY
MI
L JÖMÄRKT
16
Year-End Report
TR
YCKSAK
341 376
Q3 Interim Report
23
Q1 Interim Report
Production: Hallvarsson & Halvarsson.
Photo: Mikael Dubois, Magnus Fond.
Print: TMG, Stockholm.
STOCKHOLM
GOTHENBURG
Per Nordberg
Chief Executive Officer
+46 8 410 40 601
per.nordberg@fouriertransform.se
Carl Backman
Investment Director
+46 31 761 91 42
carl.backman@fouriertransform.se
Per Aniansson
Investment Director
+46 8 410 40 606
per.aniansson@fouriertransform.se
Mikael Johnsson
Investment Manager
+46 31 761 91 46
mikael.johnsson@fouriertransform.se
Viveca Gasslander
CEO-assistant/Office Manager
+46 8 410 40 602
viveca.gasslander@fouriertransform.se
Mattias Silfversparre
Investment Director
+46 31 761 91 47
mattias.silfversparre@fouriertransform.se
Ulf Järvenäs
Chief Financial Officer
+46 8 410 40 603
ulf.jarvenas@fouriertransform.se
Daniel Riazzoli
Investment Manager
+46 8 410 40 605
daniel.riazzoli@fouriertransform.se
Erik Sterner
Investment Director
+46 8 410 40 610
erik.sterner@ fouriertransform.se
Victoria Torell
Investment Associate
+46 8 410 40 609
victoria.torell@fouriertransform.se
Magnus Westerlind
Chief Legal Officer
+46 8 410 40 608
magnus.westerlind@fouriertransform.se
Anna Zetterlund
Chief Accountant
+46 8 410 40 607
anna.zetterlund@fouriertransform.se
Christian Zeuchner
Investment Director
+46 8 410 40 604
christian.zeuchner@fouriertransform.se
Fouriertransform AB
Sveavägen 17, 10 tr
111 57 STOCKHOLM
Fouriertransform AB info@fouriertransform.se
www.fouriertransform.se
Kaserntorget 6
411 18 GOTHENBURG
+ 46 8 410 40 600
+ 46 31 761 91 40
MARCH 2015