Year in Brief. Net sales increased by 5 per cent to SEK 655 million (624). Orders amounted to SEK 316 million (565).

Transkript

1 Annual Financial Report 2011

2 contents Year in Brief 2 Stokab 3 CEO s Message 4 The City of Opportunity 6 Stokab s customers 9 Increased Security Reduces Transports 10 Employees 12 S:t Erik Kommunikation AB 13 Directors Report 14 Group Profit and Loss Statement 16 Year in Brief Net sales increased by 5 per cent to SEK 655 million (624). Orders amounted to SEK 316 million (565). The number of new connections supplied totalled 2,018 (2,212). Properties with 115,000 (80,000) households were connected with fibre optics. This means that approximately 290,000 households in Stockholm can now connect to Stokab s network. Profit before tax increased to SEK 171 million (168), which constitutes Stokab s highest ever earnings. Investments amounted to SEK 501 million (361). Numbers in parentheses are for Group Balance Sheet 17 Group Cash Flow Statement 19 Parent Company Profit and Loss Statement 20 Parent Company Balance Sheet 21 Parent Company Cash Flow Statement 23 Notes Additional Information 24 Review report 30 Auditor s Report 31 Directors and Auditors 32 Management 33 Swedish / English Glossary 35 More information about Stokab is available in both Swedish and English at Contact Details Director of Finance, Hans Förnestig hans.fornestig@stokab.se Sales and Marketing Director Christel Sandstedt christel.sandstedt@stokab.se Public Information Officer, Anders Broberg anders.broberg@stokab.se As the fibre optic network expands, the ability to reroute is becoming increasingly important. During 2011, Technical Manager Stefan Carlsson designed a rack unit with a very low production cost that makes it possible to manage patch cords on the sides of a data cabinet, instead of on the front. This doubles the data cabinet s capacity. Twice as many fibre optic connections can be rerouted at Stokab s almost 600 nodes and this reduces the need to hire physical space for new nodes as the network grows. The cover photograph is of Jonni Uschanov, one of Stokab s installation technicians, using a laptop computer in the field. Laptops make it possible to access network documentation and work records on site. Measurement data can also be sent back to the office after completing delivery. This minimises transports and creates greater operative efficiency since most of a technicians administrative work can be carried out on site. In 2011, we began using the city s wireless WiFi zones to improve connections and in 2012 we will begin testing 4G technology. 2 Stokab Annual Financial Report 2011

3 Stokab Stokab was formed in 1994 to develop a competitionneutral infrastructure able to meet future communications needs, stimulate competition, promote diversity, offer freedom of choice and minimise the need for excavation. Stokab is owned by the City of Stockholm and provides a passive fibre-optic communications network within the Stockholm region. The company is tasked with expanding, maintaining and leasing connections to this fibre optic network. Our operations are intended to promote optimal conditions for IT development and thereby the positive development of the Stockholm region. Fibre optics is an optical system used for transmitting light, which, with its superior capacity, surpasses and thereby also replaces copper wiring as a medium for different forms of digital communication. Fibre optics is used for transferring data, TV and telephone signals and more. An optical fibre is thinner than a strand of hair and is capable of transmitting millions of phone calls or hundreds of TV channels simultaneously. A powerful and robust IT infrastructure is necessary in today s society to make access to high-capacity data communication possible for businesses and individuals alike, any time, anywhere. The network is open to all on equal terms and Stokab rents connections to anyone who wishes. Because only unlit or dark fibre is leased, customers are responsible for their own active equipment. Kista Science City One of the World s Leading ICT Clusters In the background of the photograph stands Kista Tower, and in the foreground, some of the many apartment buildings that have been connected using a multi fibre solution that allows each household to have its own connection. Stokab s network stretches the equivalent of more than 30 times around the earth. It is 1.25 million fibre kilometres and 5,500 cable kilometres long, has 600 crossover connections and more than 15,000 access points. The network stretches from Norrtälje in the north to Nynäshamn in the south and covers, in principle, the entire central city of Stockholm, as well as large sections of its outer suburbs and the majority of business, office and commercial centres within Stockholm. Stokab Annual Financial Report

4 CEO s Message Stokab s operations have developed positively during Major investments have been made in network expansion and the number of fibre optic connections supplied has continued to be high. In terms of earnings, Stokab has continued to progress well, giving us a stable financial foundation on which to stand. This positive financial progress has created the preconditions for the rapid development of both the fibre optic network and of Stokab s operations in general. Delivery Reliability Improved Stokab s customer base is growing and our customers require an increasing number of connections. Happily, our customers are also increasingly satisfied with our work and our products. Thanks to dedicated and active work, the number of satisfied customers has increased. Naturally, we don t intend to rest on our laurels. During 2011, we paid particular attention to improving delivery reliability, so that customers would receive the connections they order both quickly and at the time desired. The demand for our products continues to be very strong from all customer segments. This is the result of the increased use of services that require broadband. Moreover, more than ever before, users now expect these services to be available wherever they are, 24 hours a day and without interruption. For example, Cisco predicts that mobile data traffic will increase by 10-fold over the next few years. Today, over 90 per cent of Stockholmers use the Internet and over half have a smartphone. The number of tablets in use also continues to rise and a growing number of services require a high-capacity Internet connection. Sweden s First Gigabit Cables Given the heightened need for fibre connections, it is not surprising that we are the first in Sweden to begin using gigabit fibre cables. Out latest and most modern node (Node 7) is being expanded and the entire network is being upgraded. Stokab s mission is to provide an open and operatorneutral fibre infrastructure for electronic communication. By constructing the fibre network as operatorneutral infrastructure, the City of Stockholm, via Stokab, ensures that all are able to lease fibre connections on equal terms. Because new players on the market have no need to invest in new infrastructure, nor to lease it from their competitors, the barriers to establishing themselves in Stockholm are low. In this way, Stokab is contributing to dynamic development within Stockholm s IT industry. Low-cost Broadband This initiative has generated results, as can be seen in a price comparison conducted by United Minds of the cost of a 100 Mbps connection for businesses in over 10 international cities. Only Singapore recorded a lower cost than Stockholm. When it comes to the cost of dark fibre connections, Stockholm recorded the world s lowest cost; extremely low on an international scale. United Minds also concludes in its investigation that competition is fierce in Stockholm. In the annual Cities of Opportunity comparison of different world cities conducted by management consultancy firm PwC, Stockholm rates in a very respectable fourth place and as the best among European cities. Stockholm was also the best among all cities in actually using IT and the many smart services available, as well as at connecting its schools. All of Stockholm s schools enjoy gigabit connections and wireless networks. Even the majority of Stockholm s preschools now also have gigabit connections. This gives the regions students opportunities available nowhere else in the world. PwC also reports that there is a very strong link between well-developed and robust broadband networks, knowledge-intensive businesses and well-educated citizens. Stockholm also boasts Europe s highest concentration of knowledge-intensive businesses. From Stokab s standpoint, it is difficult to see how price regulation would promote the expansion of Swedish fibre optic networks. Green IT Stokab operates the world s largest operator-neutral fibre optic network. Fibre, in itself, is an environmentally friendly product, especially when compared to copper wire. A well-developed fibre optic network also makes possible a host of so-called green IT solutions. At our latest and environmental award-winning node, waste heat is captured and converted inside Stockholm s Östra Real upper-secondary school s heating system. Just prior to Christmas 2011, waste heat from Stokab s node provided half of the school s heating energy. Thanks to this solution, the school s energy consumption has been reduced by more than 30 per cent. Since 2011, all energy used at our offices is environmentally certified in accordance with the Swedish Society 4 Stokab Annual Financial Report 2011

5 Stokab contributes to dynamic development of Stockholm s IT industry. for Nature Conservation s license Bra miljöval-märkt el (environmentally-friendly electricity), or equivalent. As part of our active efforts to protect the environment, in the coming year Stokab will produce its first ever sustainability report. Fibre for All Multi-family Residences Work to connect all multi-family residences in Stockholm was done using environmentally efficient methods. By the start of 2012, we had completed the planned expansion in the central city. In the coming year, the remaining properties in outlying suburbs will also be connected. Once completed, properties containing approximately 90 per cent of Stockholm s private residences will be connected via a multi-fibre solution, which means that each household will have the opportunity to use their own fibre connection. Price regulation threatens to thwart IT development in Sweden. The Swedish Post and Telecom Authority (PTS) has decided to regulate prices on the Swedish fibre market. In the opinion of the Stockholm City Council, such regulation will give rise to uncertainty concerning the conditions for investment in basic IT infrastructure, which, in turn, risks hampering IT development in Sweden. For Stokab s part, the City Council has decided that fibre optic network expansion into other areas of the household sector will not be carried out and that, additionally, great caution should be observed regarding future investments. It is not only Stockholm that is concerned by the price regulation policies now being formulated, a policy which, in reality, undermines the realisation of the government s broadband strategy. The Swedish Association of Local Authorities and Regions (SALAR/SKL) also believes that price regulation will negatively impact the expansion of fast, modern broadband networks throughout the country. On the basis of this belief, SALAR/SKL commissioned Deloitte to examine price regulation in detail. Their conclusion was that introducing price regulation risks causing the re-monopolisation of Sweden s telecom infrastructure. From Stokab s standpoint, it is difficult to see how price regulation would contribute to the expansion of Swedish fibre optic networks. International Interest I am proud to relate that our network and the expansion of fibre optic networks to homes continues to generate interest both domestically and abroad. Just as in previous years, in 2011 Stokab received a large number of visitors from around the world who were interested in finding out more about the Stockholm model and how it sets the stage for world-class IT development. These visits often also generate contacts with businesses based in Stockholm. Confidently Looking to the Future Stokab is now focusing on connecting up the remainder of Stockholm s multi-family residences and on meeting our customer s needs even better. The success of our operations over recent years has created a stable ground that allows us to look ahead to the new year with confidence. Stockholm, March 2012 Jörgen Kleist, CEO Stokab Annual Financial Report

6 The City of Opportunity In 2012, all multi-family residences will be connected to Stokab s network the world s largest operator-neutral fibre network, with a cable length equivalent to thirty times the earth s circumference. With an absolutely world-class IT infrastructure, there is every opportunity to use smart and sustainable solutions and help generate creative and innovative ideas. There is a reason that PwC places Stockholm in the top of its annual rankings in the use of digital services, Internet access in schools and broadband quality. The excellent IT environment in Stockholm is attested to, among other things, in the international rankings that management consultancy firm Price Waterhouse Coopers assigns annually to cities around the world. In its Cities of Opportunity ranking, Stockholm ranks in fourth place and best among European cities. According to PwC, Stockholm is one of the world s leading cities in the fields of innovation, living conditions, health, safety and security. For Stokab, which provides the basic IT infrastructure, it is especially interesting to note that Stockholm is considered to be the very best city in the world when it comes to using the wide range of possibilities that IT provides. Stockholm s schools are also considered to have the best school Internet access in the world. Stockholm also received a top score for broadband quality. And with the world s largest operator-neutral fibre optic network, with a cable length equivalent to 30 times the circumference of the earth, it is also interesting to note that there is a very strong correlation between robust, reliable networks and intellectual assets. As such, it is not strange that Europe s highest concentration of knowledgeintensive companies is found in Stockholm or that the Stockholm region has Sweden s best-educated citizens. Innovativ region Compared with the most innovative regions within and outside of Europe, it has been shown that Stockholm is the most knowledgeintensive region outside of the US. For several years the service sector (which includes IT and other knowledge-intensive companies) has also created the majority of new jobs, and is responsible for an increasing percentage of Sweden s export revenue. Roughly 60 per cent of Sweden s IT employees are located within the Stockholm region. Today, Kista alone is home to 1,000 companies, 6,800 university students and 1,100 IT researchers with postgraduate degrees. Ninety per cent of Kista s IT companies are export companies a very high figure compared with other sectors. Kista Science City is one of the world s leading IT clusters and is also a world-leading innovation zone. Thanks to Kista Science City, the Stockholm region has become an international centre for wireless technology, broadband and mobile applications and services. Kista is home to the largest concentration of IT researchers in northern Europe. Sweden s Financial Centre Sweden s capital and the surrounding region generate one-third of Sweden s economic growth and increasingly serve as the country s financial centre and as a growth engine. Last year, Stockholm was responsible for more than 30 per cent of Sweden s new business startups and almost 25 per cent of the country s total labour market. 6 Stokab Annual Financial Report 2011

7 Niyat Biniam, Amanda Kiflay and Arina Zanganeh are just three among many who have followed the drama Antigones dagbok the world s first mobile phone theatre production, created by the theatre company Kista Teater. The three girls who take part in the Stockholm School of Arts Vår teater (Our Theatre) activities in Husby think mobile theatre is cool. Theatre-goers, equipped with earphones connected to smartphones, move around outdoors, where Husby s city environment and sculptures serve as the stage and set design. They also participate in the performances by answering questions about the drama. Mobile phone theatre is just one of many innovations that have been turned into everyday realities in Stockholm. A Stockholm-based company s outlay for a 100 Mbps Internet connection is very low according to a price comparison of more than 10 international cities conducted by analyst United Minds in the autumn of Among the cities compared, Stockholm recorded the lowest price for dark fibre connections. Stokab Annual Financial Report

8 Low-cost Broadband Unlimited access to dark fibre has led to the establishment of 100 active operators in Stockholm, resulting in intense competition. The price companies pay for fast broadband connections in Stockholm is very low, as confirmed in a price comparison of more than 10 international cities conducted by analyst United Minds. When it comes to dark fibre connections, Stockholm recorded the lowest price among the cities analysed. Fibre to Homes The large fibre network has also facilitated the rollout of mobile high-speed networks like 3G and 4G/ LTE. For a number of years now, Stockholm has enjoyed 100-per-cent broadband coverage, both fixed and mobile. The fibre optic network is currently being expanded and by the end of 2012, basically all multifamily residences will have been connected using a multi-fibre solution that makes it possible for each individual household to have its own fibre optic connection. This expansion will mean that households have the opportunity to enjoy the same standard of connection as businesses. The City of Stockholm has always viewed basic IT infrastructure in the same light as all other infrastructure, and has therefore worked to ensure that fibre optic connections are available to all on equal terms. Apart from the obvious impact of such a policy on broadband prices, it has also meant that IT use is widespread. More than 90 per cent of Stockholm residents use the Internet and over half own a smartphone. Interactivity Requires Network Capacity The need for network capacity is on the rise as a growing number of people begin to use cloud-based services and start to become their own media producers. Not only are files uploaded to YouTube and live TV broadcasts sent via Bambuser, but live concerts are also held online, whose audiences spread around the world are given the opportunity to interact with the musicians. The world s first mobile phone theatre Digitalisation and broadband coverage provide completely new opportunities. The world s first mobile phone theatre was created by Stockholm s Kista Teater theatre company. Theatre-goers, equipped with earphones connected to smartphones, move around outdoors, where Husby s city environment and sculptures serve as the stage and background. They also participate in the performances by answering questions about the drama. E-services and Open Data In Stockholm, new e-services that simplify people s everyday lives and also free up resources are continually being launched. The City of Stockholm makes its databases accessible to all. One example of this is Stockholmskällan, a database containing photographs, maps, archival documents, technical documents, works of fiction, films, artwork and other material that tells the story of Stockholm s history and that has been opened to the public. The material has been sourced from a number or archives, museums and libraries within Stockholm. Digital Participation Stockholm is working to create the best possible conditions for digital participation in community matters. Apart from access to a well-developed fibre optic network provided through Stokab, many households have already been given access to gigabit connections in their homes. Through Stiftelsen Hotellhem i Stockholm (Stockholm City Council s social services housing), people who need assistance to re-enter the ordinary housing market are provided with the necessary knowledge about the Internet and its possibilities. Come and Try course are held about the digital world in cooperation with different associations and Internet access is provided free of charge in in many locations. Stockholm is a clear example of how far-sighted cooperation can improve a city both economically and socially, all in the name of achieving better quality of life. Green IT There are a wealth of opportunities for making use of green IT solutions in Stockholm. At Stokab s broadband node, for example, waste heat is utilised to warm uppersecondary school Östra Real. Smart e-services can also optimise travel. Commuters can be provided with the latest information in real time and now thanks to fibre optic connections congestion tax systems can be established without the need to re-design streets to make room for a large number of physical toll stations. A City Brimming with Opportunities Only four of Sweden s municipalities offer 75 per cent of households and businesses the opportunity to use a broadband connection of at least 100 Mbps. For three of these municipalities, Stokab s is behind this achievement by creating well-developed networks. Moreover, the cost of broadband in Stockholm is low, in particular the price of dark fibre connections, and Stockholm is considered to be the world s most innovative region outside of the US. In short, Stockholm is a city brimming with opportunity a world-class city in the making. 8 Stokab Annual Financial Report 2011

9 Stokab s Customers Stokab currently has over 800 customers, 100 of whom are either operators or service suppliers. Our customers include companies that are active in many different industries and, as such, have different needs when it comes to network structure and IT solutions. For this reason, Stokab s network has been adapted to achieve a high degree of flexibility. Operators More than 100 operators and service suppliers use Stokab s network to deliver their services. These services include everything from Internet connection to TV, telephony and specific cloud-based services. Regardless of what kind of business model operators and service suppliers use, Stokab s different production solutions make it possible for them to reach end-customers simply and cost-effectively. Businesses and Organisations Businesses and organisations that require large data capacity and that strive to achieve efficient and secure data communication lease their own fibre connections from Stokab. Freedom of choice, costefficiency and total control are achieved since the businesses either provide their own or purchase other communication services. This makes it is easier to both influence and adjust transmission rates and communications technology. Telenor is one of many Stokab customers contributing to increasing competition within Stockholm and making use of the opportunities our connection of multi-family residences has created. The Public Sector The need to develop public sector services using new technology continues to grow. By combining data communication, telephony and TV, processes within public settings and communication with citizens are both simplified and streamlined. Leasing connections from Stokab is a guarantee of a reliable and powerful IT infrastructure for all public operations, e.g. hospitals, schools and administrations. Residences in Stockholm Households growing need for rapid communication and constant connection continues to drive demand for increased bandwidth, which, in turn, increases the need for a powerful and future-oriented IT infrastructure. For this reason, Stokab continues to expand its network so that, in principle, it will cover all multi-family residences within Stockholm City. Connection to Stokab s operator-neutral fibre optic network makes it possible for property owners to streamline the operation and maintenance of services like temperature regulation, electricity and water meters, camera surveillance, lifts, common laundry rooms and security systems. Moreover, the network also makes it possible to meet tenants increasing needs for access to the Internet, telephony and TV via range of service providers. At the same time, competition, diversity and freedom of choice increase, especially if property owners install an internal fibre optic network. Jonas Jegerborn, Head of Sales and Marketing, RSM at Telenor Sweden. Stokab Annual Financial Report

10 Increased Security Reduces Transports Over the past year, a number of node sites have been equipped with surveillance cameras as the network was expanded. This both increases security and reduces the need for physical transports, as site inspections can now be carried out remotely. From the very beginning, reliability has been a central consideration in the expansion of the network. The reasons are obvious. Without a robust network and reliable service, our customers are unable to feel fully confident in their operations, since our network comprises a critical aspect of the work they do. Measures need to be taken in a number of different areas in order to maintain reliability in a robust network. This includes building in redundancies and ensuring the ability to reroute when expanding a network. Reliability issues have always been an integrated part of the company s operations and are managed in such areas as network security, preparedness and emergency preparedness, IT support and follow-up. Efforts to improve reliability are on-going at all facilities. For example, work to equip node sites with camera surveillance continues. This, in combination with the fact that the physical handling of keys has been automated, increases security, streamlines work and contributes to a reduction in travel. Green Possibilities The expansion of Stokab s network to all multi-family residences makes a host of green solutions available to both property owners and households. For property owners, connection to the network means increased opportunities to make use of control and regulation services and electronic locking systems and camera surveillance for important areas, facilities and thoroughfares. For households, connection means increased opportunities for efficient telecommuting, the planning and optimisation of travel, and not least of all the opportunity to consume media as a service, instead of needing to buy physical products such as CDs, DVDs and books; all of which need to be physically produced and transported. Environmentally-friendly and cost-efficient production methods are used in the network expansion to multifamily residences thanks to the scale of the expansion. The new network structure also allows customers to be more environmentally-friendly in their work. Customers who currently lease space in Stokab s Node 7 actively contribute to heating Stockholm s Östra Real upper-secondary school. The heat generated by the communications equipment inside the node is transferred via a heat exchanger to the school s heating system. At the close of 2011, half of the school s heating needs was supplied by heat from Stokab s node. Thanks to this green solution, Östra Real has reduced its power consumption by more than 30 per cent. The node has been named the Sustainable IT Project of the Year and is also part of efforts by the eco-friendly Stockholm suburb of Norra Djurgårdsstaden, currently under development. A local node is currently being built there that is expected to heat the multi-family residence in which it will be located. Half of upper-secondary school Östra Real s heating needs are supplied by Stokab s broadband node, which has also been named Sustainable IT Project of the Year. Our environmental efforts are aimed at reducing the environmental impact of our activities. Overarching goals include the use of green vehicles for transport whenever possible, the disposal of materials to limit emissions of greenhouse gases and their impact on the environment, and the sorting of waste for recycling. Since 2011, all energy used at out facilities is environmentally certified in accordance with the Swedish Society for Nature Conservation s license Bra miljövalmärkt el (environmentally-friendly electricity), or equivalent. With the exception of specialised vehicles, Stokab s vehicle fleet consists of 100-per-cent environmentally-friendly vehicles. Over the course of 2011, a streamlining and reduction of Stokab s own need for data servers has been carried out, which has reduced our energy requirements by roughly 25 per cent. Additionally, various video conferencing solutions have also been trialled. Measures implemented to heighten reliability at node locations have also included measures to improve energy efficiency. Energy consumption is expected to fall by approximately 10 per cent where both power consumption and vehicle fuel are included. Stokab works primarily with contractors and consultants. To ensure that environmental measures are not just an internal consideration, tenderers are required to implement systematic environmental efforts as part of procurement procedures. This includes requiring tenderers to have an environmental management system in place and to ensure that any subcontractors also comply with Stokab s environmental requirements. 10 Stokab Annual Financial Report 2011

11 Households need for high-capacity broadband connections is increasing every year. The driving forces behind this trend include HDTV, the desire to watch films and TV on demand, the uploading of both images and home movies, telecommuting and online gaming. Olivia and Iris enjoy games like Moviestar Planet and StarDoll. The expansion of the fibre optic network to all multi-family residences in Stockholm will be completed during Stokab s network terminates in these cellars, where house nodes are set up. Property owners then connect their own fibre network to this house node, which is connected to each apartment and other locations. Stokab Annual Financial Report

12 Employees Stokab is a knowledge-intensive company whose skilled and dedicated managers and employees are crucial to its operations. Preventive health measures create the right conditions and the opportunity to help employees feel secure in their workplace, to feel like they are a part of their workplace and to enjoy themselves. We are constantly developing our organisation with the aim of achieving our business and operational goals. Based on needs analyses, we investigate ways to improve our organisation and ways our skills needs can be met. Development initiatives are implemented both systematically and with a long-term view. All employees and managers have been involved in further developing our organisation and behaviours from two different angles our processes and our company culture so as to further strengthen our customer-first focus. Our efforts to ensure we have an active customer focus will continue in 2012 and will include more professional development activities. The aim is to provide each employee with the understanding, knowledge and freedom to act necessary to contribute to positive customer relations. This fits with efforts aimed at achieving the company s business and operational goals. The Importance of Preventive Health Efforts We view each individual Stokab employee as both unique and important. Therefore, our employee s health is also an important consideration for us. That s why Stokab has a proactive and systematic programme to minimise the risk of ill health for our employees. We are convinced that preventive health efforts within the physical and social work environment allow employees to feel happy, secure and involved in their work environment. Low Level of Illness-related Absenteeism Out strategic efforts have generated clear improvements in health, as can be seen in our low level of illness-related absenteeism just 3.1 per cent of ordinary working hours. At the close of 2011 Stokab had 96 employees, of which 61 were men and 35 women. Stokab s management group consists of 57 per cent men and 43 per cent women. 12 Stokab Annual Financial Report 2011

13 S:t Erik Kommunikation AB S:t Erik kommunikation AB is a wholly owned subsidiary of Stokab. S:t Erik Kommunikation is responsible for procuring, administering and developing the city s internal communications network. The network is exclusive to the City of Stockholm s administrations and wholly owned companies and is intended for both administration and the more public needs of education, childcare, leisure and culture. Its aim is to ensure that the city s communications network is effective and cohesive. In total, around 2,250 locations across the city are linked together. The network connects around 50,000 employees and about 100,000 students across the city. As Stokab completes connecting fibre to multi-family residences, smaller venues within the city such as preschools and sheltered housing are also receiving high-speed connections. S:t Erik Kommunikation is also responsible for operating the city s LAN network for businesses and administrations. This responsibility covers both the electronic equipment and the associated passive property networks. Moreover, all of Stockholm s schools were equipped with wireless networks during S:t Erik Kommunikation both procures and is responsible for the operation of the network that, at present, includes approximately 4,500 wireless access points. Stockholm has the world s best Internet access in schools. This was the conclusion arrived at after management consultancy Price Waterhouse Coopers annual ranking of cities around the world. Entitled Cities of Opportunity, the survey ranks Stockholm school s Internet access as the world s best. The fact that all of Stockholm s schools have gigabit connections and wireless networks is another factor that makes the city an international role model. Upper-secondary school teacher Daniel Barker maintains a running, individual dialogue with all his students simultaneously via small, wireless units. Communicating in this way allows him to determine directly what students understand and this enables him to adapt his teaching to suit students needs. Agnes is one of Barker s students at Stockholm s Norra Real upper-secondary school. Stokab Annual Financial Report

14 Directors Report Stokab s board and managing director hereby submit the following annual financial report for financial year 1 January 2011 to 31 December Operations Stokab s mission is to construct, lease out and maintain a passive fibre optic network within the Stockholm region. The company is competition-neutral and is to provide a network that is open to all on equal terms. The purpose of the infrastructure and Stokab s operations is to stimulate positive development for Stockholm by contributing to favourable conditions for IT development in the region. Stokab s main assignment is its network operations, which include the expansion and operation of a fibre optic network, and the leasing of fibre connections without active terminal equipment known as dark fibre. In connection with its network operations, Stokab also runs the infrastructure operations Knutpunkt (marketplaces where customers can install equipment for exchanging telecom traffic and services) and Antennplats (the leasing of space on water towers for the installation of antennas for mobile phones, etc.). The Antennplats operation was transferred to Stockholm Vatten AB from the 1 January S:t Erik Kommunikation AB Stokab s wholly owned subsidiary, S:t Erik Kommunikation AB, is responsible for administering and developing communications solutions on behalf of the City of Stockholm. As such, the company is tasked with procuring and administering Stockholm City s communications solutions. Important Events During the Year Earnings before tax for 2011 increased by two per cent to SEK 171 million compared with 2010, which is the best ever result in the group s history. This figure is the result of continued high demand for the group s products, a high delivery capacity and lower total costs due to streamlining. Orders amounted to SEK 316 million. All customer categories ordered products over the course of the year, which, is primarily the result of increased demand from households and businesses for services that require broadband. As a result of the high volume of orders, net sales continued to grow and totalled SEK 655 million in 2011, which is five per cent greater than the previous year (SEK 30 million). The number of new connections supplied totalled 2,018. In addition, within the framework for continued fibre optic network expansion to multi-family residences, properties containing approximately 115,000 apartments have also been fitted with fibre optic connections. Significant events after the reporting date No significant events have occurred since the reporting date. Changes to the Board of Directors The Stockholm City Council appointed seven members and three deputy members. The new members appointed were a chairperson, vice chairperson, two ordinary members and two deputy members. In addition, the City Council appointed a new ordinary general examiner and a new deputy general examiner. The employee organisation also appointed a new deputy member. Finansiella nyckeltal (tkr) Nettoomsättning Resultat före disp. o skatt Balansomslutning Räntabilitet på totalt kapital 9,5% 11,3% 11,5% 12,7% 9,8% Investeringar Stokab Annual Financial Report 2011

15 Employees For several years now Stokab has carried out systematic environment improvement efforts. This work includes health-related measures, as well as long-term rehabilitation work. In 2011, this work has contributed to Stokab s very low rate of employee absenteeism due to illness 3.1 per cent. Environmental Protection The City of Stockholm s environmental protection programme and Stokab s environmental survey form the basis for the company s environmental work. Development work is currently under way to systematise and structure efforts to improve environmental protection measures. The most important efforts by Stokab are to reduce its environmental impact by coordinating use of the IT infrastructure. Investments This year s investments totalled SEK 501 million, including a stock change of SEK 3 million (361). These investments primarily consisted of money spent to extend Stokab s networks to multi-family residences in Stockholm s inner city. At the close of the year, fixed assets under construction totalled SEK 416 million (355), which is SEK 61 million more than at the start of the year. Financing Investments have been financed using both Stokab s own and borrowed funds. At the end of the period, funds borrowed totalled SEK billion (977m). Net financial losses for 2011 totalled SEK -34 million, which is five per cent lower (-2m) than the previous year. The main reason for this is increased borrowing. Future Development Management s challenge is to further develop Stokab s business model on the basis of a clear strategy and through operations guided by solid business decisions. At the same time, Stokab must supply the City of Stockholm s and its surrounding region s need for infrastructure. Doing so will lay the foundation for the establishment of new business in the Stockholm region that can utilise the IT infrastructure to offer new types of services and technical solutions. As such, the expansion of the fibre optic network to meet the needs of households and businesses lies at the heart of Stokab s continued development. This will create opportunities for interaction between the community, households, businesses and industry within broadband networks. A Swedish / English Glossary is available on page 35 to facilitate the translation of the Accounts and Notes (Additional Information). Vinstdisposition (kr) Styrelsens förslag till beslut om vinstutdelning avseende medel i moderbolaget Förslag till vinstdisposition Till årsstämmans förfogande står följande vinstmedel: Balanserade medel Årets resultat Summa Styrelsen föreslår att vinstmedlen disponeras på följande sätt: Till aktieägaren delas ut (170 kr per aktie) I ny räkning överföres Beträffande moderbolagets och koncernens resultat och ställning i övrigt hänvisas till efterföljande resultat- och balansräkningar, kassaflödesanalyser samt tilläggsupplysningar Stokab Annual Financial Report

16 Group Profit and Loss Statement Alla belopp uttrycks i tusental kronor där ej annat anges. (tkr) Not RÖRELSENS INTÄKTER Nettoomsättning Aktiverat arbete för egen räkning Övriga rörelseintäkter Summa rörelsens intäkter RÖRELSENS KOSTNADER Driftskostnader Övriga externa kostnader 2, Personalkostnader Av- och nedskrivning immateriella och materiella anläggningstillgångar Summa rörelsens kostnader Rörelseresultat före finansnetto Resultat från finansiella investeringar Övriga ränteintäkter och liknande resultatposter Räntekostnader och liknande resultatposter Summa resultat från finansiella investeringar Resultat efter finansiella poster Resultat före skatt Årets skatt ÅRETS RESULTAT Stokab Annual Financial Report 2011

17 Group Balance Sheet (tkr) Not TILLGÅNGAR ANLÄGGNINGSTILLGÅNGAR Immateriella anläggningstillgångar 7 Balanserade utvecklingskostnader Summa immateriella anläggningstillgångar Materiella anläggningstillgångar 7 Inventarier Markinventarier Pågående nyanläggningar Summa materiella anläggningstillgångar Summa anläggningstillgångar OMSÄTTNINGSTILLGÅNGAR Kortfristiga fordringar Kundfordringar Fordringar hos systerbolag Skattefordran Momsfordran Övriga fordringar Förutbetalda kostnader och upplupna intäkter Summa kortfristiga fordringar Summa omsättningstillgångar SUMMA TILLGÅNGAR Stokab Annual Financial Report

18 Group Balance Sheet cont. (tkr) Not EGET KAPITAL OCH SKULDER EGET KAPITAL 14 Bundet eget kapital Aktiekapital ( aktier med kvotvärde SEK 100) Bundna reserver Fritt eget kapital Fria medel Årets resultat Summa eget kapital Avsättningar Uppskjuten skatt Avsättningar Avsättning för pensioner och liknande förpliktelser Summa avsättningar Kortfristiga skulder Checkkredit; internbank Stockholms stad Leverantörsskulder Skulder till moderbolag Skulder till systerbolag Övriga kortfristiga skulder Upplupna kostnader och förutbetalda intäkter Summa kortfristiga skulder SUMMA EGET KAPITAL OCH SKULDER Ställda säkerheter och ansvarsförbindelser Ställda säkerheter Inga Inga Ansvarsförbindelser Inga Inga 18 Stokab Annual Financial Report 2011

19 Group Cash Flow Statement (tkr) Not DEN LÖPANDE VERKSAMHETEN Resultat efter finansiella poster Justeringar för poster som inte ingår i kassaflödet Av- och nedskrivningar Betald inkomstskatt Kassaflöde från den löpande verksamheten före förändringar i rörelsekapital FÖRÄNDRINGAR I RÖRELSEKAPITAL Ökning / minskning av kortfristiga fordringar Ökning / minskning av kortfristiga skulder Kassaflöde från den löpande verksamheten INVESTERINGSVERKSAMHETEN Investering i materiella anläggningstillgångar Kassaflöde från investeringsverksamheten Finansieringsverksamheten Utbetald utdelning Kassaflöde från finansieringsverksamheten Förändring av likvida medel 0 0 Likvida medel vid årets början 0 0 LIKVIDA MEDEL VID ÅRETS SLUT 0 0 Stokab Annual Financial Report

20 Parent Company Profit and Loss Statement (tkr) Not RÖRELSENS INTÄKTER Nettoomsättning Aktiverat arbete för egen räkning Övriga rörelseintäkter Summa rörelsens intäkter RÖRELSENS KOSTNADER Driftskostnader Övriga externa kostnader 2, Personalkostnader Av- och nedskrivning immateriella och materiella anläggningstillgångar Summa rörelsens kostnader Rörelseresultat före finansnetto Resultat från finansiella investeringar Övriga ränteintäkter och liknande resultatposter Räntekostnader och liknande resultatposter Summa resultat från finansiella investeringar Resultat efter finansiella poster Obeskattade reserver Överavskrivningar Resultat före skatt Årets skatt ÅRETS RESULTAT Stokab Annual Financial Report 2011

21 Parent Company Balance Sheet (tkr) Not TILLGÅNGAR ANLÄGGNINGSTILLGÅNGAR Immateriella anläggningstillgångar 7 Balanserade utvecklingskostnader Summa immateriella anläggningstillgångar Materiella anläggningstillgångar 7 Maskiner och inventarier Markinventarier Pågående nyanläggningar Summa materiella anläggningstillgångar Finansiella anläggningstillgångar Andelar i dotterbolag Summa finansiella anläggningstillgångar Summa anläggningstillgångar OMSÄTTNINGSTILLGÅNGAR Kortfristiga fordringar Kundfordringar Fordringar hos koncernföretag Fordringar hos systerbolag Skattefordran Momsfordran Övriga fordringar Förutbetalda kostnader och upplupna intäkter Summa kortfristiga fordringar Summa omsättningstillgångar SUMMA TILLGÅNGAR Stokab Annual Financial Report

22 Parent Company Balance Sheet cont. (tkr) Not EGET KAPITAL OCH SKULDER EGET KAPITAL 14 Bundet eget kapital Aktiekapital ( aktier med kvotvärde SEK 100) Reservfond Fritt eget kapital Balanserad vinst Årets resultat Summa eget kapital Obeskattade reserver Överavskrivning Summa obeskattade reserver Avsättningar Avsättningar Avsättning för pensioner och liknande förpliktelser Summa avsättningar Kortfristiga skulder Checkkredit; internbank Stockholms stad Leverantörsskulder Skulder till moderbolag Skulder till systerbolag Övriga kortfristiga skulder Upplupna kostnader och förutbetalda intäkter Summa kortfristiga skulder SUMMA EGET KAPITAL OCH SKULDER STÄLLDA SÄKERHETER OCH ANSVARSFÖRBINDELSER Ställda säkerheter Inga Inga Ansvarsförbindelser Inga Inga 22 Stokab Annual Financial Report 2011

23 Parent Company Cash Flow Statement (tkr) Not DEN LÖPANDE VERKSAMHETEN Resultat efter finansiella poster Justering för poster som inte ingår i kassaflödet Av- och nedskrivningar Betald inkomstskatt - - Kassaflöde från den löpande verksamheten före förändringar i rörelsekapital FÖRÄNDRINGAR I RÖRELSEKAPITAL Ökning / minskning av kortfristiga fordringar Ökning / minskning av kortfristiga skulder Kassaflöde från den löpande verksamheten INVESTERINGSVERKSAMHETEN Investering i anläggningstillgångar Investering i finansiella anläggningstillgångar Kassaflöde från investeringsverksamheten FINANSIERINGSVERKSAMHETEN Erhållet koncernbidrag Utbetald utdelning Kassaflöde från finansieringsverksamheten Förändring av likvida medel 0 0 Likvida medel vid årets början 0 0 LIKVIDA MEDEL VID ÅRETS SLUT 0 0 Utnyttjad checkkredit uppgår till 1169 mkr, vilket förklarar att de likvida medlen vid årets utgång är 0 kr Stokab Annual Financial Report

24 Notes Additional Information Not 1 Allmänt Redovisnings- och värderingsprinciper Årsredovisning och koncernredovisning är upprättad enligt Årsredovisningslagen och BFN:s allmänna råd. Redovisningsrådets rekommendation nr 9 avseende inkomstskatter och nr 17 avseende nedskrivningar har tillämpats. Koncernredovisning Koncernens resultat- och balansräkningar omfattar alla företag i vilka moderbolaget direkt eller indirekt har mer än hälften av aktiernas röst värde samt företag i vilka koncernen på annat sätt har ett bestämmande inflytande och en mer betydande andel av resultatet av deras verksamhet. Koncernredovisning är upprättad enligt årsredovisningslagens 7:e kapitel. Samtliga förvärv av företaget är redovisade enligt förvärvsmetoden. Överstiger anskaffningsvärdet för aktier i dotterföretag det beräknade marknadsvärdet av företagets nettotillgångar enligt förvärvsanalysen, utgörs skillnaden av koncernmässig goodwill, vilken skrivs av över uppskattad livslängd. I koncernens balansräkning redovisas de enskilda bolagens obeskattade reserver uppdelade på eget kapital (bundna reserver) och uppskjuten skatteskuld. I resultaträkningen redovisas som uppskjuten skatt den skatt som är hänförlig till årets förändring av obeskattade reserver. Minoritetsandel av nettovinst och eget kapital i delvis ägda dotterföretag redovisas separat vid beräkningen av koncernens nettovinst och eget kapital. Internvinster och mellanhavanden inom koncernen elimineras i koncernredovisningen. Intäktsredovisning Nettoomsättningen består av intäkter från upplåtelse av fiberförbindelser som intäktsredovisas linjärt över upplåtelseavtalets löptid. Förskottsfakturerade upplåtelseavgifter redovisas som förutbetald intäkt. Väsentliga engångsavgifter periodiseras över upplåtelseavtalens löptid. Nedskrivningar och reverseringar Redovisat värde för materiella anläggningstillgångar granskas beträffande eventuell värdeminskning när händelser eller ändrade förutsättningar indikerar att det redovisade värdet eventuellt inte kommer att kunna återvinnas. Om det finns sådana indikationer och om det redovisade värdet överstiger det förväntade återvinningsbara beloppet skrivs tillgångarna eller de kassagenererande enheterna ned till det återvinningsbara beloppet. Det återvinningsbara beloppet för materiella anläggningstillgångar motsvarar det högsta av nettoförsäljningsvärdet och nyttjandevärdet. Nyttjandevärdet utgörs av nuvärdet av att de förväntade framtida kassaflödena enligt en diskonteringsfaktor före skatt som avspeglar marknadens aktuella uppskattning av pengars tidsvärde och de risker som förknippas med tillgången. För tillgångar som inte till övervägande del genererar oberoende kassainflöden fastställs det återvinningsbara beloppet för den kassa genererande enhet till vilken tillgången hör. Nedskrivningen redovisas i resultaträkningen. Reversering av nedskrivning sker när grunderna, helt eller delvis, för nedskrivningen har bortfallit. Reverseringar redovisas i resultaträkningen. Skatter Skattebelastning påverkas av de bokslutsdispositioner och andra skatte mässiga dispositioner som görs. I redovisningen aktiveras uppskjutna skattefordringar på underskottsavdrag och temporära skillnader i den mån de bedöms kunna utnyttjas inom en rimlig framtid. En avstämning av gällande och effektiv skattesats samt övriga upplysningar redovisas i noterna Pensioner Koncernen tillämpar ett premiebaserat tjänstepensionssystem. Alla anställdas pensionsåtaganden är tryggade via tjänstepensionsförsäkring. VD erhåller pension i enlighet med reglerna för KAP-KL samt en kompletterande avgiftsbaserad chefspension som tillämpas för chefer inom Stockholms Stad. Den kompletterande chefspensionen är en tilläggspension till KAP-KL som innebär en avsättning motsvarande 15% av lönen. Avsättningen kan användas till temporär pension före 65 års ålder. Avsättningar En avsättning redovisas i balansräkningen när koncernen har en befintlig legal eller informell förpliktelse som en följd av en inträffad händelse och det är troligt att ett utflöde av ekonomiska resurser kommer krävas för att reglera förpliktelsen samt att en tillförlitlig uppskattning av beloppet kan göras. Anläggningstillgångar Materiella och immateriella anläggningstillgångar redovisas till historiska anskaffningsvärdet med tillägg för ackumulerade uppskrivningar samt med avdrag för ackumulerade nedskrivningar och ackumulerade avskrivningar. Mark avskrivs inte. Avskrivning sker linjärt över tillgångens nyttjandeperiod. Avskrivningar % Balanserade utvecklingskostnader 20% 20% Inventarier, verktyg, instrument 20% 20% Kommunikationsutrustning 20% 20% Markinventarier, installationsmaterial 20% 20% Markinventarier, kabel 10% 10% Markinventarier, kanalisation 5% 5% Koncernfordringar och skulder I enlighet med koncerngemensamma redovisningsprinciper gällande inom Stockholms Stadshus AB har inte koncernfordringar och skulder mot samma juridiska person nettoredovisats. Ägarförhållanden AB Stokab är ett helägt dotterbolag till Stockholms Stadshus AB ( ), säte i Stockholm. 24 Stokab Annual Financial Report 2011