questback annual review 2011

Annual review 2011

W W W . Q U E S T B A C K . C O M

3ANNUAL REVIEW 2011

QuestBack is a global leader of enterprise feedback man-agement (EFM), customer experience management (CEM), social CRM and market research for businesses of any size. Through our cost effective Software as a Service (SaaS) platform, we offer an end to end solution for organizations to gain real time insight by capturing feedback, engaging in dialogues and tracking behavior of customers, employees and partners, in order to drive better business decisions and strengthen relations.

We help enterprises and agencies do more with less – to en-gage audiences for reliable, actionable insight that have a direct benefit on the company bottom line. QuestBack services more than 5,000 customers worldwide through all online feedback channels. Founded in 2000, QuestBack is headquartered in Oslo, Norway with 19 offices worldwide. Over the past few years QuestBack`s achievements and technology have been recognized and awarded numerous times; Deloitte Technology Fast 500 EMEA, Red Herring 100 Global, and Nordic TechTour. 2011 also includes listing in Gartner’s Magic Quadrant for Social CRM and Forrester’s EFM Wave report. (Market Insights Platform providers)

QuestBack in brief

» Without continual growth and progress, such words as improvement, achievement, and success have no meaning.

«BENJAMIN FRANKLIN , 1706-1790

2011

HISTORY TIMELINE

1999: Newspaper article in Financial Times spurs the idea of QuestBack: to create a two-way, internet based service for actionable feedback management (Ask & Act), basing it on a business model that later has become known as Software as a Service (SaaS).

Jan 2000: QuestBack is founded. One employee at the Oslo office.

Aug 2000: Beta-version of QuestBack’s 1.0 version of our feedback management software. Five pilot customers on board.

Nov 2001: Profitable after successful commercialization of product in the Norwegian market.

2004: Taking the success abroad: establishing QuestBack in Sweden.

2005: Gartner Group names our industry “Enterprise Feedback Management” (EFM), defining it exactly as QuestBack did it back in 2000.

2005-2007: European leap: Establishing QuestBack in 11 additional countries across Western Europe.

2008: Reaching 100 MNOK in revenues.

Sept 2008: Acquiring Norwegian competitor Refleks, as well as Easyresearch – the Swedish market leader within EFM

2009: Global financial crisis – yet no increase in customer churn amongst QuestBack customers throughout the recession – demonstrating the strong value created for our customers.

Sep 2010: Acquiring Digium – the Finnish market leader within EFM. Thus making QuestBack the undisputed market leader within EFM in the European market.

2011: Acquiring Globalpark – the German market leader within EFM. Reinforcing QuestBack’s global position as well as strengthening the product offering in Social CRM and market research.

CONTENT

HISTORY TIMELINE · · · · · · · · · · · · · · · · · · · · · · · · · · · · 3

QUESTBACK IN BRIEF · · · · · · · · · · · · · · · · · · · · · · · · · · 3

CEO’S SUMMARY · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 4

ORGANIZATIONAL DEVELOPMENT & INTEGRATION · · · · 5

THE MANAGEMENT · · · · · · · · · · · · · · · · · · · · · · · · · · · · 6

OUR VALUE PROPOSITION · · · · · · · · · · · · · · · · · · · · · · 7

OUR VALUES · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 8

SOLUTIONS · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 10

OUR SPACE · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 12

OUR OFFERING · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 13

OUR PLATFORM · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 14

UNIQUE POSSIBILITIES · · · · · · · · · · · · · · · · · · · · · · · · 15

CASE STUDY “BOSCH POWER TOOLS” · · · · · · · · · · · · 16

CASE STUDY “SWISS” · · · · · · · · · · · · · · · · · · · · · · · · · 17

BOARD OF DIRECTORS’ REPORT · · · · · · · · · · · · · · · · 18

CONSOLIDATED STATEMENT OF PROFIT AND LOSS · · 20

CONSOLIDATED CASH FLOW STATEMENT · · · · · · · · · 21

CONSOLIDATED BALANCE SHEET · · · · · · · · · · · · · · · 22

WHERE YOU CAN REACH US · · · · · · · · · · · · · · · · · · · 24

QUESTBACK IN BRIEF

5ANNUAL REVIEW 2011

ORGANIZATIONAL DEVELOPMENT & INTEGRATION

QuestBack: stronger with GlobalparkIn August 2011 QuestBack acquired Globalpark AG and Globalpark, Inc. As a result of the acquisition, we have signifi-cantly strengthened our market presence in the German speak-ing part of Europe, as well as in the UK and the US. Geographi-cal expansion alone, was however not the main driver behind the acquisition; but rather the strong and innovative product portfolio and the strong R&D focus of the Globalpark organiza-tion. The product offering fully complements that of the legacy QuestBack organization, which now can boast a strong foot-hold in the social CRM and high-end EFM spaces, as well as within the market research vertical. The rumor in the market that “everything is possible” with the Globalpark EFS platform has been proven to be true. With the sales and marketing acumen and the mass market solutions of the QuestBack organization in addition, we are now in a position to lead the market develop-ment. QuestBack is now a top five global vendor in our space, and we can target and serve customers with a wide variety of needs at all levels of the organization.

It is a reflection and recognition of the R&D focus of the former Globalpark organization that the CTO of the company, Oliver Trabert, was named Group CTO and joined the existing Group Management Team.

From 2012, all Globalpark companies will change their names to QuestBack, and already the products in the former Global-park portfolio are offered and successfully sold in the global QuestBack organization.

Current focus is on integrating the whole product on a joint platform, so that all our current 5,000 customers can benefit immediately from new functionality being developed, as well as make use of the wider service offering which already exists in the combined product portfolio.

Current and new customers can rest assured that QuestBack is the best vendor in this space to help them grow their own business; address their business problems, and create superior experiences!

2011 was a landmark year for QuestBack. With the acquisition of Globalpark in August, we solidified our position as the clear mar-ket leader in Europe and became a top five vendor globally. We are firmly on course to become the global leader in our space. The

acquisition also strengthened our product offering extensively, es-pecially within Social CRM and market research. Being recognized in both Gartner`s Magic Quadrant for Social CRM and Forrester’s Wave for EFM are confirmations that QuestBack is leading the way, and underpins our unique ability to bridge the gap between tradi-tional CRM and social media with our Social Engagement Platform. Our complete product offering is now nothing short of impressive and a real game-changer for companies trying to navigate in this “Age of the Customer.”

Social CRM (SCRM), Enterprise Feedback Management (EFM), and Voice of the Customer (VoC) initiatives are gaining momen-tum in all of our markets. The underlying force that drives this development is the experience economy, where people are now clearly placing more and more emphasis on their experience as a customer or consumer. In short: customers expect more, they switch more, and tell more. Consequently, businesses focus heavily on customer experience management, where our wide SCRM offering will be a cornerstone of any serious initiative. This is not about surveys and reports, but about the ability to capture and manage timely and relevant feedback, as well as integrating feedback with core customer systems and business processes across all channels. QuestBack enables organizations to gain actionable insight and build stronger relationships with custom-ers and employees, through our leading feedback and social engagment solutions. This is our core value proposition to our customers. As we enter 2012, the 255 employees in QuestBack all work to exceed our customer’s expectations in this area. We also have exciting new products to be launched in the market this year, and we are very well positioned to realize our vision of creating the winners of the experience economy.

Ivar KroghrudCEO, QuestBack AS

CEO’S SUMMARY

Clear market leader in Europe

IVAR KROGHRUD, CEO

IVAR HAS BEEN WITH QUESTBACK

SINCE THE FOUNDATION IN 2000, AND

IS RESPONSIBLE FOR THE OVERALL

RUNNING OF THE COMPANY.

7ANNUAL REVIEW 2011

OUR VALUE PROPOSITION

Executive management

Ivar Kroghrud

Chief Executive Officer

Ivar has been with QuestBack since the Company was founded in 2000, and is responsible for the over-all running of the company. Before joining QuestBack, Ivar worked as a management consultant, focusing on strategy and eBusiness. Ivar holds a Bachelor’s degree from the Royal Norwegian Naval Academy and a Master’s degree from the Norwegian School of Management (BI).

Eli Cathrine Disch

Chief Financial Officer

Eli Cathrine joined QuestBack in 2008. She came from the position as CFO at Buypass AS – a Norwe-gian supplier of secure solutions for electronic ID, signature and payment. Prior to this, Eli worked for 8 years at PricewaterhouseCoopers; first as Finance Director at PwC in Hun-gary, then as a senior management consultant at PwC Consulting in Oslo. Eli Cathrine has a Bachelor’s degree in Business Administration from the American University in Paris, an MBA from the Norwegian School of Management BI, as well as studies in Corporate Finance from London Business School.

Oliver Trabert

Chief Technology Officer

Oliver joined QuestBack in 2011 as CTO as a result of the acquisi-tion of Globalpark. Oliver was the founder and managing director of WP-Experts and was one of the key architects of the tie-up with Global-park. Prior to founding WP-Experts, Oliver held several senior positions at Conet, initially in its German office and then for his last three years as CTO of Conet USA. Oliver is the author of numerous books and specialist articles on business portals and internet applications. Oliver is a true thought leader within Customer Experience Management, Social Media and Feedback Management.

Matti Heikkonen

Chief Operating Officer

Matti joined QuestBack in 2010 as a result of the acquisition of Digium – a Finnish market leader in EFM solutions. Matti has been the CEO of Digium since 2007, and the chairman of the board during years 2004-2009. Prior to Digium, Matti worked at Nokia Corporation in business development; first in strategic projects and then in strategic alliances responsible for the global Nokia – Cisco Systems alliance. Prior to this, Matti’s positions have included business develop-ment, m&a, strategy and manage-ment within the software industry. Matti has an M.Sc (tech.) from Helsinki University of Technology.

THE MANAGEMENT

QuestBack enables organizations to gain actionable insight and build stronger relationships with customers and employees, through leading feedback and social engagement solutions.

Develop continuously

Think outside the box

Find solutions

Seek to create maximum customer value

Be passionate about what we do

Don’t rest on our laurels

Go the extra mile

Care about each other as colleagues

Care about our customers

Care about the world we live in

QuestBack is a fast growing software com-pany. All the people here at QuestBack are highly capable knowledge workers. They go to work in the morning facing a rapidly develop-

ing and demanding marketplace. As we grow and as we continue to work towards our vision of making our custom-ers the winners in the experience economy, we are faced with a constant need to make the right decisions.

The right decisions, both big and small, on every level, every day. It is our belief that the employees at QuestBack will make the right decisions if they can be made by the right person, at the right level, without unnecessary esca-lation or bureaucracy. To do this we need two key ele-ments: a shared understanding of where we are going, and shared core values that are work as a compass in our everyday decision making.

9ANNUAL REVIEW 2011

The value of having values

OUR VALUES

11ANNUAL REVIEW 2011

Feedback and experience management

HUMAN RESOURCES» Recruitment Process Evaluation*

» Employee Turnover/Exit Evaluation*

» Competence Mapping

» Management Evaluation

» Employee Satisfaction SurveySALES

» Lead Generation

» Sales Meeting Evaluation*

» Lost Prospect Review*

» New Customer Entry/Exit

Evaluation*

CONTACT/CALL CENTER» Request/Task Registration

» Experience Evaluation

» Task and Follow-up Assignment

» Lead Generation

MARKETING» Customer Satisfaction Survey

» Customer/User Panel

» Product and Service Offering Evaluation*

» Web Site Evaluation*

» Campaign Evaluation*

ADMINISTRATION» Administration Internal Events

» Internal Service Evaluation*

» Meeting Planning

» Innovation/Suggestion Box

» Purchase Decision Support

INFORMATION» Satisfaction Survey

» User Panel

» Web Site Evaluation*

» Information Campaign Evaluation*

» Service Offering Evaluation

TRAINING» Invitation and Registration*

» Expectations/Pre-knowledge Mapping*

» Training Evaluation*

» Training Effectiveness

Measurement*

MANAGEMENT» Employee Satisfaction Survey

» Management Evaluation

» New Employee Entry/Exit Evaluation*

» New Customer Entry/Exit Evaluation

» Customer Satisfaction Survey

YOUR COMPANY/ ORGANIZATION

* EVENT-TRIGGERED AND PROCESS BASED SURVEYS AND/OR EVALUATIONS.

MORE ABOUT SOLUTIONS ON WWW.QUESTBACK.COM

QuestBack provides feedback management services and know-how for gathering, analyzing, and responding

to business critical feedback.

EASY TO GET STARTED!

» USER FRIENDLY

» WEB BASED

» READY TO USE TEMPLATES

» PRO ACTIVE ADVISORS

» ACCESSIBLE SUPPORT

SOLUTIONS


QuestBack is positioned at the center of four emerging areas. Coming from the areas of feedback management and market research, QuestBack has

taken the global shifts in the market seriously. With innovative new products and solutions we have ex-tended our offering and reach tremendously, and we are today heavily focused on Customer Experience Management (CEM) and social engagement.

QuestBack`s product launches in 2012 will strengthen these areas significantly with new and innovative solu-tions for the customers. To the extent organizations still question the value of investing in social media, QuestBack will help put the discussion to an end.

To be a winner in the experience economy, companies have to focus on how their customers perceive their brand, and they have to embrace social media and en-

gage their stakeholders through the new channels. QuestBack makes all this possible with our compre-hensive product portfolio.

QuestBack provides both out-of-the-box and tailor-made solutions. We have some of the biggest global brands on our client list, as well as smaller compa-nies. These organizations all find what they need to collect feedback, do research, report, analyze and engage using QuestBack products.

OUR OFFERING

A one stop shop

Feedback, experience management, and market research meet social engagement

OUR SPACE

EFM

MARKET RESEARCH

CEM SOCIALCRM

CEM

Customer Experience Management, controlling

and benchmarking of brand experience at digital touch points

SOCIAL CRM

Customer Relationship Management fostered by communication with custom-ers through communities and other social networking sites

MARKET RESEARCH

Customer intelligence and customer insight with focus on the social web

EFM

Enterprise Feedback Management

CORE COMPETENCE AREAS

QUESTBACK OFFERINGQUESTBACK FEEDBACK MANAGEMENT

& ENGAGEMENT PLATFORM

SERVICES & DEPLOYMENT

MAIN PRODUCT COMPONENTS

MAIN SOLUTION AREAS

EFM

Survey & Data collection

Self service Assisted self service Managed deploymentManaged service

(Outsourcing)

Roles & Workflow

Analytics & Reporting

Master Data Management

Community & Portal

Mobile & Social

Integration & Customization

SalesManagement

MarketingManagement

Human Resource

Management

Market Research

Training &Events

CustomerServices & Contact

Center

Product &Development

Administration& Data

Collection

CEM SOCIAL CRM MARKET RESEARCH


UNIQUE POSSIBILITIES

Social media meets traditional CRM

Everything you need in one place

OUR PLATFORM

No connection between traditional CRM and

social media collectivity

ChaosLack of ControlLack of Trust

Real-time insightRelevance

PersonalizationControl

Actionable data (=RoI)

Event Driven Feedback

Social InsightSocial media monitoring

CommunityPanel

Flexible role and rights management enable all organi-zational departments to use the platform as their own secure online research and engagement platform. Actionable and meaningful feedback from customers

or employees is available quickly and continuously. QuestBack customers can engage, collaborate and share without leaving the QuestBack platform. The platform is highly scalable, certified and compliant with the strictest security standards.

S ocial media has changed the game, and enterprises are looking for ways to regain control. QuestBack of-fers solutions to do exactly that; putting unstructured data back in controllable business processes.

OLIVER TRABERT, CTO

OLIVER WAS THE FOUNDER AND

MANAGING DIRECTOR OF

WP-EXPERTS AND IS A THOUGHT

LEADER WITHIN CUSTOMER

EXPERIENCE MANAGEMENT

AND ENTERPRISE FEEDBACK

MANAGEMENT.


SITUATIONHistorically, SWISS evaluated customer satis-

faction through paper surveys, administered by

cabin crew during the flight, a strongly interview-

er- biased method but still common for many

airlines. Additionally, the paper survey didn’t

provide clear insight of the flight guests repur-

chase intention. Since responses were collected

before landing and arrival – it was missing key

elements of the overall experience. The SWISS

customer experience varies a great deal, de-

pending on the class (First, Business, Economy)

in which the flight guest travels. For this reason,

SWISS tracks five segments separately (first

class, business class, economy class, long-haul

and short-haul). The challenge the Customer

Satisfaction Survey (CSS) group faced was the

participation of each class.

SOLUTIONSWISS needed to change their data collection ap-

proach to something more reliable and customer

friendly, that would measure across the entire

experience - tracking satisfaction scores from 14

stages of the customer journey. They would also

allow customers to use their preferred method

of response, including mobile devices and tab-

let computers to measure feedback on satisfac-

tion from travelling customers. SWISS uses the

QuestBack Enterprise Feedback Suite (EFS), with

all its online, mobile, local and social feedback ca-

pabilities. Most of the business or first class cus-

tomers are members of the SWISS frequent flyer

program, which means there is usually customer

data like email address, current flight details and

customer history, available. The surveys are sent

by email some days after the flight – with partially

completed known details about the customer

and the route. SWISS uses a random quota se-

lection in several steps, to capture reliable and

valid feedback without having to interview each

flight guest.

This includes a targeted approach for:

» Every airport and travel route

» Each type of aircraft

» All three travel classes

» All flight stages: booking procedure, Check-

in, Lounge, Boarding, Departure punctuality,

Irregularity handling, Cabin crew, Food and

beverages, Reading material, Seating comfort,

Cabin interior, Cleanliness, Arrival services,

Speed of baggage delivery.

RESULTThe success factors of CSS require top man-

agement commitment, intelligent survey design,

and clear responsibilities. SWISS achieves this

by making a program like CSS part of perfor-

mance targets. Moreover, they integrate three

different IT Systems (Customer database, Book-

ing system, QuestBack EFM platform) to make

the survey as intelligent and short as possible.

They also involve all customer-facing depart-

ments from the beginning to ensure that CSS

becomes a success. SWISS aimed to improve

the overall experience across its three customer

segments, and 14 steps of the customer journey

(from ticket purchase to baggage claim). Specific

goals were:

» Increase customer satisfaction

» Increase customer engagement, with higher

response rates and more favorable feedback

experience.

» Establish qualitative customer feedback

as an early indicator to identify potential

improvement areas. Suggestions were help-

ful, and applied towards the business class

seating plan.

» Reduce the cost of capturing feedback.

SITUATIONMarket research findings have shown that recom-

mendations amongst colleagues make a decisive

contribution to the sales success of Bosch Power

Tools. For this reason, Bosch Power Tools focus

on social networks. The goal is to develop plat-

forms for brand fans and brand ambassadors to

offer these valuable customers an ideal environ-

ment for recommendations. Bosch Power Tools

operates two social media platforms.

The professional community, known as “Bob”,

which has more than 460,000 visitors and 35,000

registered users, and primarily targets existing

customers, and the Facebook fan page, with

more than 10,000 fans. The purpose of the Face-

book page is to approach all Bosch fans who do

not yet own their own Bosch power tools – e.g.

vocational trainees or young craftsmen.

Bosch Power Tools’ goal was to find out whether

the marketing investment on Facebook was

worthwhile. “Do we reach new target groups?

How valuable are our Facebook fans in compari-

son to the members of the professional commu-

nity? How much overlap is there between Face-

book and the professional community?” Such

findings are necessary in order to implement

marketing resources in a targeted manner, and to

align all activities so that they are of optimal value

to the company.

SOLUTIONBosch Power Tools needed a software solution

that could create a comprehensive and custom

analysis of the users in social networks possible.

Social Insight Connect is a Facebook app that

combines quantitative and qualitative market

research methods. With this, brands such as

Bosch Power Tools, can verify whether they are

reaching the correct target group on Facebook.

At the same time, they can enter into direct in-

teraction with selected, especially valuable cus-

tomer segments in order to better understand

their needs. Social Insight Connect makes it pos-

sible for Bosch Power Tools to gain indispensable

knowledge for effective social media marketing.

Ivar Kroghrud, CEO of QuestBack, explains: “To-

day, social media plays an increasingly important

role in the communication between brand and

customer. Facebook is a powerful tool for brand

loyalty, because people are given direct access

to their favorite products there. Nevertheless,

companies have not yet taken advantage of all

the opportunities that this virtual exchange of in-

formation has to offer.”

RESULTWith Social Insight Connect, Bosch Power

Tools was able to answer a lot of questions. One

result showed that an above-average number

of Bosch fans on Facebook are woodworkers.

Bosch Power Tools reacted to these findings

with a specific approach to this target group,

e.g. through the staging of power tools used for

woodworking.

Bosch was able to positively answer the question

regarding the overlap between the Bob Commu-

nity and the Facebook fan page: Only about 11%

of the Bosch Power Tools social media users are

active on both the Bob Community and Face-

book. This means that addressing a new target

group on Facebook was successful. The results

show in particular that the planned recruitment of

vocational trainees was successful.

The findings show that the social media strategy

of Bosch Power Tools is paying off. Both Face-

book and the Bob Community are necessary in

order to reach a large number of the stakeholder

groups and industries that are relevant for the

success of Bosch Power Tools.

With Social Insight Connect, Bosch Power Tools

can analyze its Facebook fans – thus designing

new initiatives for current and future Bosch Power

Tools customers.

Bosch Power Tools knows the value of Facebook fans

Swiss Air fights for satisfied customers

CASE STUDY

CASE STUDY “BOSCH POWER TOOLS”

CASE STUDY “SWISS”

CASE STUDY

ABOUT BOSCH POWER TOOLSBosch Power Tools is the European market leader for profes-

sional power tools. The company supplies craftsmen and com-

panies covering all industries: from woodworking to electrical

installation and all the way to building construction and civil

engineering.

ABOUT SWISSSwiss International Air Lines is part of the Lufthansa Group and

a member of Star Alliance since 2006. Swiss serves from its Zu-

rich hub and the further Swiss international airports of Basel and

Geneva with a fleet of 90 aircraft 70 destinations in 37 countries

all over the world.


Board of directors’ report

BOARD OF DIRECTORS’ RE-PORT

1 THE BUSINESS

With the acquisition of the German company Globalpark AG, as well the US distributor Globalpark, Inc, QuestBack has confirmed its position as Europe’s leading supplier of complete services and solutions for organizations’ management and analysis of feedback and dialogue with their customers and stakeholders, whether it is in the form of Enterprise Feedback Management; through the integration and collaboration with more traditional CRM-systems; or by means of integration with and the use of social media. The Group developed and marketed such services in 2011 under the product brand names QuestBack®, Digium, Easyresearch Feedback Manager, and Globalpark EFS. The solu-tions are provided on a Software as a Service (SaaS) - platform, whereby customers’ access is provided on the basis of a sub-scription, usually for a year at a time.

The growth in the underlying business of the QuestBack Group continued in 2011, and with the Globalpark acquisitions, the Group can show a growth in total revenues of 66 % as compared to reported revenues in 2010.

At the end of 2011, QuestBack AS had fully owned subsidiar-ies in Finland, Sweden, Denmark, Germany, Austria, Great Britain and USA, with offices in Oslo, Helsinki, Stockholm, Gothenburg, Malmo, Copenhagen, Cologne, Vienna, London, and New York. Furthermore, QuestBack had franchise offices in 10 additional countries.

The company has its headquarters in Oslo, at Løvenskioldsgate 26. The group management team is based in Oslo and in Hürth outside of Cologne.

More than 75 per cent of the group’s revenues are generated outside of Norway.

2 THE FINANCIAL STATE-MENTS AND ACCOUNT-ING PRINCIPLES

The financial statements for the QuestBack group comprise the financial accounts for the parent company QuestBack AS, as well as the financial statements for the subsidiaries QuestBack Swe-den AB, QuestBack Danmark A/S, QuestBack Holding OY (FI) and QuestBack Group OY. The financial accounts for Globalpark AG, including the subsidiaries Tivian GmbH, Globalpark Austria, Globalpark UK, Globalpark, Inc, and WP Experts GmbH are con-solidated into the group accounts with effect from 1 August 2011.

The group financial statements are prepared according to IFRS (International Financial Reporting Standards)

QuestBack AS is owned by QuestBack Holding AS, which is held by the private equity fund Reiten & Co Capital Partners VII and a wide group of employees and management.

The QuestBack group reported revenues of 232.3 million NOK in 2011, and presented an ordinary net profit before tax of 25 million NOK. At the close of 2011 the group had a total balance of 29 million NOK in unrestricted cash. The group profit after tax was 15.5 million NOK.

3 RESEARCH AND DEVELOPMENT

QuestBack has people involved in development work in Oslo, Helsinki, Stockholm, and Cologne. These resources work as a single team on the further development of the QuestBack ser-vices, with a particular focus on development of new functional-ity and applications. Following the acquisition of Globalpark, the main hub for R&D has been placed at the offices in Hürth, outside of Cologne.

The R&D work is organized as a group project, and the costs related to the development of concept and programming is rec-ognized as an intangible asset in the balance sheet at group level.

4ACCOUNTING TREATMENT OF THE INVESTMENT IN SUBSIDIARIES

The subsidiaries’ financial results are fully consolidated into the group statement of profit and loss from the date of the acquisi-tion. In the preparation of the group accounts, the purchase price in connection with the acquisitions is allocated to the relevant items in the balance sheet; both to tangibles, as well as to intan-gible assets, such as customer portfolio, trademarks, technology and goodwill. The latter consists of excess values in the shape of the employees’ know-how; customer relationships beyond that which is reflected in the actual customer contracts; as well as the corporate culture and the growth potential that the acquisition entails. In connection with the acquisition of Globalpark, an al-location has been made in accordance with IFRS 3.

The Directors are of the opinion that the financial statements give a true and accurate picture of QuestBack AS’ assets and liabili-ties; financial standing, and financial results. The conditions for a going concern are present, and the financial statements for 2011 have been prepared on this basis.

5 COMMENTS ON THE PROSPECTS FOR THE BUSINESS

The Directors of QuestBack AS observe that the market for the services provided by the group is growing rapidly. The develop-ment in the group during 2011, as well as the access to new technology and services made possible through the Global-park acquisition, open up new market opportunities not only in Europe, but also in North America. The company continues its growth ambitions.

6 WORKING ENVIRONMENT, STAFF AND DIVERSITY

The working environment within the group and the subsidiaries is considered to be good. There were 62 employees in the parent company in 2011, whereas there were 71 employees in the rest of the Nordic countries. The acquisition of the Globalpark enti-ties brought a further 132 employees in Germany, Austria, Great Britain and the US, bringing the total number of employees to 265 in 2011. Approximately 25 % of the employees are women. There are no women on the board of directors. The company has as a goal to be an equal opportunity employer, and has since its establishment maintained a policy that there should be no dis-crimination on the basis of sex.

QuestBack has operations in all of Europe and in USA. Amongst the approximately 60 full time equivalents at the head office in Oslo, there were employees of 10 different nationalities. Within the group there are in total more than 20 nationalities represent-ed, and the group management team consists of four members and as many nationalities. The official group language is English. Specific measures to promote further diversity are therefore not deemed necessary.

THE BOARD OF DIRECTORS OF QUESTBACK AS


Consolidatedstatement ofprofit and loss

CONSOLIDATED STATE-MENT OF PROFIT AND LOSS

Consolidatedcash flowstatement

CONSOLIDATED CASH FLOW STATEMENT

PROFIT AND LOSS PROFIT AND LOSS

COMMENTS:

The consolidated financial statements for the QuestBack Group are prepared according to International Financial Reporting Standards – IFRS. The figures include the entities QuestBack AS with its subsidiaries QuestBack Sweden AB, QuestBack Danmark A/S, QuestBack Holding OY (Finland) as well as QuestBack Group OY (Finland) with subsidiaries.

In addition Globalpark AG with its subsidiaries Tivian GmbH, Globalpark Austria GmbH, WP Experts GmbH, Globalpark UK Ltd, and Globalpark INC are included from the time of acquisition; i.e. 1 August 2011.

The consolidated accounts are prepared in Norwegian kroner (NOK), which is the functional currency of the mother company and the Group. Figures in EUR are presented for informational purposes only. For the statements of profit and loss and cash flow, the figures are converted at the average rate for the relevant reporting year. For 2011 the NOK conversion rate to the EUR was 7.79, whereas the comparable rate for 2010 was 8.05.

QuestBack Group NOK’000 EUR’000

2011 2010 2011 2010

Sales revenue 230,152 137,186 29,535 17,035

Other revenue 2,121 2,376 272 295

Total revenue 232,273 139,561 29,807 17,330

Cost of Goods Sold 30,134 17,874 3,867 2,220

Gross profit 202,139 121,687 25,940 15,110

Personnel costs 115,369 60,927 14,805 7,566

Other operating costs 43,870 23,167 5,630 2,877

Total operating costs 159,238 84,093 20,435 10,442

EBITDA 42,901 37,593 5,505 4,668

Depreciation and amortisation 10,177 5,609 1,306 696

EBIT 32,724 31,985 4,199 3,972

Net financial items -7,705 -1,535 -989 -191

Earnings before tax 25,081 30,449 3,211 3,781

Tax on earnings 9,339 8,997 1,160 1,117

Earnings after tax 15,679 21,453 2,051 2,664


2011 2010 2011 2010

CASH FLOW FROM OPERATING ACTIVITIES

Operating profit/loss 25,018 30,449 3,210 3,781

Income tax paid -6,117 -8,752 -785 -1,087

Depreciation and amortisation 10,177 5,609 1,306 696

Change in accounts receivable -14,420 3,069 -1,850 381

Change in accounts payable 4,720 -176 606 -22

Change related to allocation to tax reserve (Sweden) - -4,642 - -576

Change in other current items and accruals -22,170 9,847 -2,845 1,223

Change in working capital - - - -

Net cash flow from operating activities -2,791 35,403 -358 4,396

CASH FLOW FROM INVESTING ACTIVITIES

Purchase of fixed assets -5,125 -1,312 -658 -163

Purchase of intangible assets -65,794 - -8,443 -

Purchase of financial assets - -173 - -21

Cash received on other receivables -33 - -4 -

Cash payments on other receivables -7,248 - -930 -

Net cash flow from investing activities -78,200 -1,485 -10,035 -184

CASH FLOW FROM FINANCING ACTIVITIES

Cash from increase in long-term debt - 8,375 - 1,040

Reduction in long-term debt -4,388 -8,395 -563 -1,042

Reduction in short-term debt - - - -

Reduction debt to parent company 103,218 -39,441 13,246 -4,897

Net cash flow from financing activities 98,830 -39,460 12,683 -4,900

Net change in cash and cash equivalents 17,839 -5,542 2,289 -688

Cash and cash equivalents at the start of the period 33,164 33,316 4,256 4,137

Cash balance in investment target - 5,390 - 669

Currency gain/loss on cash or cash equivalents 868 - 111 -

Effect of exchange rate differences - - 41 74

Cash and cash equivalents at the end of the period 51,871 33,164 6,697 4,192

0

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2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Revenues

EBITDA


Consolidatedbalance sheet1

CONSOLIDATED BAL-ANCE SHEET

Consolidatedbalance sheet2

PROFIT AND LOSS PROFIT AND LOSS

COMMENTS:The consolidated financial statements for the Quest-Back Group are prepared according to International Financial Reporting Standards – IFRS. The balance sheet reflects all entities held as at 31.12.2011. In connection with the acquisition of Globalpark AG and Globalpark, INC, respectively, a purchase price allocation was performed. This entails the identification of all tangible and intangible assets to which the relevant portions of the acquisition price are allocated, in accordance with IFRS 3. Similar ex-ercises have been performed for all previous acquisi-tions. To the extent any intangibles are qualified as goodwill, these are tested every year for impairment of the value.

The consolidated accounts are prepared in Norwe-gian kroner (NOK), which is the functional currency of the mother company and the Group. Figures in EUR are presented for informational purposes only. For the balance sheet, the figures are converted at the clos-ing rate for the relevant reporting year. For 2011 the NOK conversion rate to the EUR was 7.79, whereas the comparable rate for 2010 was 7.91.

ELI CATHRINE DISCH

JOINED QUESTBACK IN 2008. SHE

HAS OVER 20 YEARS’ EXPERIENCE

WITH FINANCIAL MANAGEMENT AND

CONSULTING IN A VARIETY OF BUSI-

NESSES, ALL OF WHICH HAVE BEEN DE-

FINED BY RAPID GROWTH AND CHANGE


ASSETS AS AT 31 DECEMBER 2011 2010 2011 2010

NON-CURRENT ASSETS

Intangible assets 346,805 163,248 44,777 20,636

Furnishings and equipment 6,910 2,909 892 368

Other financial assets 5,724 6,891 739 871

Total non-current assets 359,438 173,048 46,408 21,874

CURRENT ASSETS

Receivables

Accounts receivable 68,036 28,301 8,784 3,577

Other receivables 16,790 11,911 2,168 1,506

Total receivables 84,826 40,212 10,723 5,083

Cash and cash equivalents 51,871 33,164 6,697 4,192

TOTAL CURRENT ASSETS 136,697 73,376 17,420 9,275

TOTAL ASSETS 496,135 246,424 63,828 31,149


EQUITY AND LIABILITIES AS AT 31 DECEMBER 2011 2010 2011 2010

EQUITY SHARE CAPITAL

Issued capital 13,614 12,295 1,758 1,554

Share premium 57,738 270 7,455 34

Total share capital 71,352 12,565 9,212 1,588

RETAINED EARNINGS

Other equity 23,439 7,989 3,026 1,010

Total retained earnings 23,439 7,989 3,026 1,010

Total equity 94,791 20,554 12,239 2,598

LIABILITIES NON-CURRENT LIABILITIES

Deferred tax liabilities 9,522 1,353 1,229 171

Intra-group long-term liabilities 209,429 106,111 27,040 13,413

Other non-current liabilities 35,558 1,973 4,591 249

Total non-current liabilities 254,509 109,437 32,861 13,834

CURRENT LIABILITIES

Accounts payable 15,644 5,381 2,020 680

Income tax payable 4,045 2,289 522 289

Public duties payable 14,817 9,424 1,913 1,191

Intra-group short-term liabilities 1,135 1,135 147 144

Other short-term liabilities 111,195 98,202 14,357 12,413

Total current liabilities 146,836 116,432 18,959 14,718

Total liabilities 401,345 225,869 51,819 28,551

TOTAL EQUITY AND LIABILITIES 496,135 246,424 64,058 31,149

WHERE YOU CAN REACH US

HEAD OFFICE

NorwayLøvenskiolds gate 26 0260 Oslo Tel: +47 21 02 70 70 Fax: +47 21 02 70 71 www.questback.no

SUBSIDIARIES

Austria Wassergasse 25 1030 Wien Tel: +43 1 715 028 911 www.questback.at

Finland Keilasatama 5 02150 Espoo Tel: +358 20 743 1550 www.questback.fi

Germany Kalscheurener Straße 19a 50354 Köln-Hürth Tel.: +49 2233 7933 6 www.questback.de

Sweden Drottninggatan 78 111 36 Stockholm Tel: +46 8 440 88 00 www.questback.se

Engelbrektsgatan 17 A 211 33 Malmö Tel: +46 40 97 82 60 www.questback.se

Theres Svenssons gata 10 417 55 Göteborg Tel: +46 31 23 93 50 www.questback.se

UK 19-21 Great Tower Street London EC3R 5AR Tel: +44 207 403 3900 www.questback.co.uk

USA 1000 Lafayette Boulevard, Suite 20 Bridgeport, CT 06604 Tel: +1 203 690 1052 www.questback.net

FRANCISEES

Australia 7/3 Koala Crescent West Gosford 2250 Sydney Tel.: +61 2 8005 7201 questback.com.au

Belgium Stationsstraat 26 1930 Zaventem Tel: +32 2 300 83 60 www.questback.be

Canada 4 Robert Speck Parkway Suite 1500 Mississauga, Ontario L4Z 1S1 Tel: +1 905 896 6946 www.questback.ca

Denmark Høffdingsvej 34 2500 Valby Tel: +45 7070 1480 www.questback.dk

France 2, Chemin de l’Acre St Pierre 27120 Chaignes Tel: +33 232 22 6512 www.questback.fr

Ireland Holfield House 2/4 Merville Road Stillorgan, Dublin 18 Tel: +353 87 984 9534 www.questback.ie

Italy Via San Barnaba 47 20122 Milano Tel: +39 333 427 6393 www.questback.it

Via Della Martinica 135/137 00121 Roma Tel: +39 06 89718099 www.questback.it

Singapore 27 Bendemeer Road #02-657 Bendemeer Mall Singapore 330027

Tel: +65 61 00 80 55 www.questback.com.au

South Africa PO Box 51359 Waterfront 8002 Cape Town Tel: +27 21 558 7401 www.questback.co.za

Spain Plaza de Manuel Becerra, 15 1ºD 28028 Madrid Tel: +34 914 00 90 58 www.questback.es

Vía Augusta, 120 2º-2ª 08006 Barcelona Tel: +34 935 330 761 www.questback.es

Switzerland Hinterbergstrsse 30 6312 Steinhausen (ZG) Tel: +41 41 748 63 60 www.questback.ch

The Netherlands Argonweg 21 Industrieterrein Hogekant 1362 AA Almere-poort Tel: +31 (0) 36 54 64 184 www.questback.nl

W W W . Q U E S T B A C K . C O M

questback annual review 2011

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