inside CONNECTING THE RED AND THE BLACK ANNUAL REPORT 2011

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1 APRIL 2012, ISSUE 05 WWWQUARTZCOCOM ANNUAL REPORT 2011 ARE YOU THE BEST OWNER? Quz+Co Baot ENTREPRENEURING IN NAIROBI Yaly CSR tv DEEP DIVES INTO EIGHT OF SCANDINAVIA S LARGEST COMPANIES Cass sd CONNECTING THE RED AND THE BLACK 2011 WAS A YEAR OF TURBULENCE IN THE GLOBAL ECONOMY Publshd Dak, Swd ad Noway

2 THIS IS THE FIFTH ISSUE OF THE QUARTZ+CO ANNUAL REPORT Publsh: Quz+Co Edtos: Ulla Stoft Ødu Tost Hvdt Thoas Møll Plas addss qustos gadg th cotts of ths pot to Tost Hvdt 5 Publshd Dak, Swd ad Noway Ptd Dak About: A busss agaz fo has b chos fo ths ya s aual pot W foud th th joualstc appoach sd appop to covy ou clts stos, th challgs thy hav ovco ad th lag thy hav acqud; stos th cotu to sp all of us Th cls ag fo clt cass to agda-sttg ths ad coc ots Quz+Co ad pst a cophsv vw of ou ya Cotact: DENMARK Rysgad 3A DK 2200 Cophag N Tl NORWAY Wgladsv 21 NO-0167 Oslo Tl SWEDEN Bg Jalsga 7 SE Stockhol Tl +46 (0) wwwquzcoco Quz+Co s WdMad Ctfd 24 FEATURES 5 CONNECTING THE RED AND THE BLACK Th ya 2011 was a ya of tubulc th global cooy It was a ya of d ad of black A wd ag of copas, dusts ad dd o sts plugd to d, whl oths showd fgus th ad ptch-black By th Quz+Co Pshp 20 ENTREPRENEURING IN NAIROBI I th su of 2010, th cosults fo Quz+Co packd th bags ad lft ho to hlp Kya tpus th qust to buld sustaabl bussss Th pupos? To pcp, as advsos to Kya tpus, a 48- hou cotst wth a gad pz of 25,000 uos fo th w By Sof Wls 24 ARE YOU THE BEST OWNER? Th facal css dos t s to las ts gp just yt So how do w cop wth ths? Accodg to t top xcutvs, o of th asws s to su bst owshp Th foutth dto of th aual Quz+Co Baot puts bst owshp ud scuty By Ulla Stoft Ødu

3 3 quz+co Aual Rpot 2011 cotts 4 6 Lockd o tagt Mssag fo th Boad How do w put a labl o a ya lk 2011? Coctg Q+C Quz+Co Dvlopt It has b qut a ya fo Quz+Co, as w gttg clos to ou abto of bc o of th th pfd advsos th Nodc go 8 10 Wg s vythg PFA Cas Agast all odds, PFA has ow wo sx of th ght tagtd pospcts ad st tos though th dusty Thkg outsd- Daly Mask Cas Wth th lauch of Daly Mask, Mask L s pushg th ffccy agda v futh ad wtg th xt chapt th hstoy of cotaso Wh Ro IKEA Cas Back 2006, IKEA Italy was a facally st ad wllpf copay th vthlss dcdd to bak o a jouy to cas sals ad poductvty O hudd utd Safoad Cas I 2011, th aagt dcdd to t a asoal tasfoo pocss to su th all tts w ot just wokg wth a local focus, but bca o copay T fo chag? Ros Cas Ths s th stoy about a copay th had fall aslp, but was bought by a pv quty fud ad awok to ach ts full pottal How to gt cosus passo fo day? Ala Cas Th day dusty has suffd dug th cooc dowtu wth a casg ub of cosus choosg poducts accodg to pc h tha qualty o bad A sght out pspctv Book Rvw 23 Had had wth tubulc Cot Today, th al challg fo busss lads s th hadly ayo has xpcd ts of tubulc bfo I th publc y Wh Q+C vwpots spu publc db O tack fo chag DSB Cas Th coclusos of a pot o th cooy of th Dash alway copay, DSB, has cvd assv tto Movg to th fast la Ak Solutos Cas Th ol dusty s suffg fo a pobl: th stuggl to kp up wth th assv dad fo ol Stcuto pactc Quz+Cv 32 Clbg coc ots Cultu 34 Owads Kp o coctg 30

4 4 ANNUAL REPORT 2011 MESSAGE FROM THE BOARD LOCKED ON TARGET Goup tuaoud, whch s studd fst-t busss schools aoud th glob today Ad D Loag wll kow wh futu MBA studts a studyg Wth a tack cod fo sttutos such as Yal, Havad ad Sloa, as wll as a 15-ya tu as Psdt IMD, Pt was a tu spo to hav o th boad W tp ou hs, ad wsh Pt all th bst wth th Loag Isttut Zuch, ad Jøg a cotud advtu wth th bst toys th wold How do w put a labl o a ya lk 2011? A ya wh w gw sgfcly Swd ad Noway, dd sssos wth a ag of th ost otabl cha th Dash busss couty, publshd a acclad book o Globalso 30, had a ta of volutay cosults wokg wth local busss tpus Kya, ad w could go o W tptd to call such a ya a c ad asy o - last wh copad to th slghtly o tubult pvous ya, chaactsd by ou g Th ya go by ad t cla th Quz+Co tuly s a ufd, taltd ad ppad ta, loyally cottd to ach oth ad to ou shad vso A ya wh th copay dlvd o ts valus, as wll as o th clt ad popl poposto So, a wa thaks to th ta fo th ffot Al thos ls, w also gful fo th cotbuto ad cott show to us by ou boad collagus Jøg Vg Kudstop ad Pt Loag, who both lft th boad th d of th facal ya O th oth had, w fl pvlgd to wlco Gy Møllsk to th boad Gy holds a pot aagal posto th Nowga Royal Cout ad cos fo a p posto wth Ko/Fy ad pvously fo a SVP posto wth SAS Als, wh sh cutly holds a boad posto Wh lookg ahad to 2012 ad podg wh w ght b a ya s t, t s saf to say th w fl cofotabl ot bcaus w kow wth xact cty wh w g to b ts of sz ad volu but bcaus w kow xactly who w wll b W wll stll b th Nodc al th global dusty of fst-t aagt cosultg W tust th you wll joy adg ths pot, ot last th stos of ou way of dlvg sults, ad would lk to tak ths oppotuty to thak ou clts, old ad w, fo th tust th thy v show ou copay Jøg, CEO th LEGO Goup, jod us back 2003 wh h was a pojct aag th LEGO Goup H os to bco th lad ad achtct bhd th LEGO Chsta Hvdt (Chaa) Gal Rtd, Fo Chf of Dfs Tobjö Khlstd (Excutv Chaa) CEO, Khlstdt & Ps AB Macus Alxad Pofsso, Lodo Busss School Gy Møllsk Chf of Staff, th Nowga Royal Cout Ncola Østd Maagg P, Pls

5 5 QUARTZ+CO CONNECTING THE RED AND THE BLACK Th ya 2011 was a ya of tubulc th global cooy It was a ya of d ad of black A wd ag of copas, dusts ad dd o sts plugd to d, whl oths showd fgus th ad ptch-black Ths was o of th facts th ad th d ad th black a cug th Quz+Co thoughout th ya Bcaus wh happs wh you cosd th dusts ad copas wth d fgus fo th pspctv of th dusts ad copas wth black os, ad vc vsa? Wh you coct th pspctvs so to spak Sothg qut tstg ad vg happs, as dostd ou dalus wth clts It s uch lk wh th d ad th black ws o a ca bty a coctd ad th g oas to lf, ablg th ca to ov fowad oc aga Who would t joy cg th gy? Wll, w v pvously fd to ouslvs as th d ta, whch appls to: a dpdt ut whos sso t s to cotuously challg ad stgth plas, opos, cocpts, asos ad capablts Phaps th just udls ou ol th qust fo black fgus o bhalf of ou clts But w hav o llusos about ou ablty to dlv sults dpdtly, as w kow th black fgus qu d-bloodd popl o th clt sd ad wo wth aspos, followshp ad couag to ov copas fowad ad to su bold black fgus o th botto l Ou w boad b, Gy Møllsk, s such a pso Ths xplas why sh was ou top cadd Bsds h aagt posto th Nowga Royal Cout ad h backgoud wth Ko/Fy ad SAS Als, Gy has sold boad xpc fo uous oth pstgous copas such as DNB No ad Post N W passo about wokg wth popl lk Gy W w to coct ad wok wth as ay of th as possbl Ad 2011 was a ya whch a ag of th bggst, ost tgug ad ost otabl Nodc copas chos to wok wth us, th ajoty of th cosoldg wokg loshps th go back ay yas O th socal sd, w a also thakful fo th tdac ou Club Q+ Lougs Noway, Swd ad Dak, both th spg ad th autu I Oslo, o tha 200 popl chos to jo ou ta to gl ad to lst to th wodful Haddy N j; Stockhol, w hld a succssful lauch vt, whl Cophag ov 600 clts ad clos stakholds vstd ou offc Ad v though ths vts ay soud fstv, thy w o ch to ou aual su ghg Båstad, wh ou ow pa-nodc ock outft blw th oof of Hotl Skas Icoc ots all of th, lk th Chstas clbos wth ou fals Mots w coo as thy pst s valu to us W vy poud ad happy to llust ths pot by shag a fw of th pojcts udtak ad coc ots dlvd o th followg pags W hop t wll coct th d ad th black fo you Thak you fo adg Th Quz+Co Pshp

6 6 ANNUAL REPORT 2011 QUARTZ+CO DEVELOPMENT MOVING CLOSER TO THE MILESTONES CONNECTING Q+C By Ulla Stoft Ødu O of th all th: W w to bco o of th top-3 cosultg copas Dak, Swd ad Noway O all: W w to bco th stst cosultg ploy bad Dak, Swd ad Noway Nodc by u: W wll buld o ou Nodc valus ad cultu, f lv also outsd th Nodc go Mès-qu-u-club: W adh to a odl wh cosultg s a ca, ad ot a stppg sto Kp o ock th f wold: W stv fo global pact ad coc ots It has b qut a ya fo Quz+Co, as w gttg clos to ou abto of bc o of th th pfd advsos th Nodc go At Quz+Co, ou o-facal abtos hav always b ctd aoud fv challgs Whl w cs th ths abtos wll ot b achvd asly o wth th xt ya o two, w ca s th w dd ovg th ght dcto 1 If th top l ad top-l gowth s a poxy fo ou stadg th akt, w fl th a vu of 364 llo Dash ko (basd o a 15-oth pod) ad 22 p ct gowth ya-o-ya sgfy a good ya, dug whch w v ovd clos to th abto Whl gowg, w v cosoldd ou posto wth ky clts ad gad addtoal goud wth pv quty, fac ad phaa aas of g pottal ad potac to us I Dak, w cutly wokg fo two thds of th lagst Dash copas (C20 dx) 63 w collagus hav jod us acoss Noway, Swd ad Dak whl 35 hav lft us to cotu th ca outsd Quz+Co 2 O of th global lads asug ploy bad stgth, Uvsu, coducts a yaly suvy a busss studts ad pofssoals to val whch copas thy pcv as th dal ploy O Uvsu s Top 50 lst of Nodc copas, Quz+Co s ub 45 th busss cgoy, akg hgh tha copas lk Shll ad Booz & Copay I Dak, th 2011 akg placd Quz+Co as ub 5 wth aagt cosultg ad as 39 ovall I Swd, w w ub 7 wth aagt cosultg ad 157 ovall Ad Noway, w w akd 5 wth aagt cosultg ad 71 ovall I Dak, th Quz+Co bad jupd 30 placs o th ovall akg a busss pofssoals copad to 2010 Wh bg th th Quz+Co bad was lss tha two yas old th t of th suvy, w cosd ths sults vy ssfactoy

7 7 QUARTZ+CO 3 Bsds th gowg top l, th ub of ploys ad ou bad awass also sbls th of a o Nodc ad v toal copay, whch s of g potac to us Th vu splt a th th couts has vd out fo a 83/17 splt 2010 btw th Dash ad ou oth Nodc offcs to a 66/34 splt 2011 Th sa ca b sad about th ub of ploys, but o th fot t ght b v o pot th w ow hav 10 collagus who a t Nodc by bth, but wsh to b a p of ou sall cvlso 4 At th ot, 54 popl hav b wokg Quz+Co fo o tha fv yas ad 71 popl hav b wokg h 2-5 yas Ths s pot to us, sc o of ou a abtos s to su th wokg Quz+Co s s as sothg o tha a stppg sto o th ca ph W w t to b cosdd a possbl ca ad a way of lf Th abov ubs tstfy to th fact th ay of us actually fl th Quz+Co s a cool plac to b fo o tha a fw yas, ad as such w cotu to buld a sall coht cvlso 5 Last ya, UN Sctay-Gal Ba K-oo tod o of ou pojcts, WdMad, hs opg addss th Wold Ecooc Fou Davos, stg th a pojct lk ths was dd f w a to c a sustaabl futu Th was a coc ot Ths ya, Th WdMad cosu labl was lauchd, ad 15 global copoos hav alady sgd up to bco bs cottd to th pos th 25 p ct of th futu lctcty cosupto wll b powd by wd, cludg Motoola, Dutch Bak, LEGO Goup, Bloobg, ad Btt Plac Aoth poof th w coctd th d ad th black ad had th oto ug thoughout 2011 was phaps lss hgh-ptchd, but qually ssfactoy: ou wok wth th wold lad cota shppg, Mask L, to c ad lauch Daly Mask a tv th pofoudly chagd th dusty Th lauch ad th followg kck-dow was a coc ot REVENUE (DKK MILLIONS) * *Notc th th facal ya 2011 s basd o a 15-oth pod how w capultd th Uvsu akgs Ths shows th w coctg ad th ou bad s gag sous goud a pofssoals who wll sstally pst ou clts ad busss ps Ou Swdsh offc has xpcd pssv gowth last ya g fo 10 to 30 collagus Bg Jalsga, wokg wth ou tustd clts as wll as two w ajo clts, sultg a top-l gowth of 50 p ct just 12 oths It has b qut a chag sttg ou offc, ltally sg th offc gow ad th puls cas wth all th w collagus j ou ta Th st-up has bco uch o pofssoal wth a full st-up cludg tal suppot fuctos, Nls Kgsbøl, Maagg P Swd, xplas ad cotus: Quz+Co s, howv, stll a h ukow bad Swd Ou bggst pots 2012 a to coct wth ky popl th Swdsh busss couty to as awass, tact a fw addtoal ky clts ad oboad o o two w so ps to fotfy ou posto REVENUE SPLIT BETWEEN COUNTRIES (%) CAGR +27% Lk th oth couts, th st-up Noway has also gow Sgud Haavk, Maagg P Noway, labos: W ow hav th sz ad a lst of tgug clts th ak us a st play th fld, ad w too hav had a pssv topl gowth W v had coutlss coss-nodc pojcts, ad I fl th th tcocto btw th th couts s ow clos ad st tha v Ou a stuggl s th btl fo w talt Ths s t a asy fght, ad hc w focusg a lot of gy o ths challg ad wll cotu to do so th c yas I lo to ou clts, ou posto wth pv quty was stgthd wth 8 du dlgcs 2011, whch s a cod fo ou offc I 2012, w pla to coct v st wth th ol ad gas dusty as wll as th taspoto scto wh w hav st capablts Th d ta cotus th jouy towads th o-facal abtos, coctg wth clts ad cadds, whl dlvg black ubs ad coc ots Th s a op oad ahad EMPLOYEES PER COUNTRY (NUMBER OF EMPLOYEES YEAR END 2011) 12 MONTHS + 3 MONTHS H as Hk Bck, Maagg P, caps: I Dak, ou posto was stgthd v futh dug th ya I fl th w ca safly say th w ow a p of th bg lagu, wokg closly wth top aagt so of th bggst copas o a ag of global ssus Nvthlss, th thg th aks ost poud fo th ya go by s DK SE/NO 83% 66% DK 17% 34% SE/NO /10 10/11 09/10 10/11

8 8 ANNUAL REPORT 2011 PFA CASE 8 Th tv of wg akt shas was calld Eght w w to w (8WWW) EIGHT BATTLES THAT ARE MAKING THE HEADLINES IN THE LIFE INSURANCE INDUSTRY WINNING IS EVERYTHING By Att Chstas & Mchal Laus I May 2011, th ladg lf suac copay Dak, PFA, dtfd a uqu oppotuty to coqu substal akt shas ad push th boudas of wh s cosdd achvabl th dusty Ths was a dautg task gv th low dg of clt oblty wth th lag-accout sgt Nothlss, ght w sgfc copo clts w dtfd, ad agast all odds, PFA has ow wo sx of th tagtd ght pospcts ad st tos though th dusty Po to PFA s capag, copas xpctd to cu sgfc costs f thy chagd th lf suac cas o povds As a sult, copas w luct to plac o lf suac copay wth a sgly sla o Th dusty was chaactsd by a sals appoach basd towads povdg poducts h tha solutos, sultg gc poposals wth lttl lvac to clts Futho, both

9 9 QUARTZ+CO PFA ad th a copttos sd to hav ltd kowldg about th stgc ssus ad ky pas of xstg ad pottal clts Th tv of wg akt sha was calld Eght w w to w (8WWW), tagtg ght ajo w accouts, ad ot supsgly, th objctv was to c a al ds fo ths copas to choos PFA ov th cut povd I od to ak ths happ, PFA dsgd a outsd- sals stgy basd o fv spl lts: Couc th tactvss of th clt-owd busss odl whch clts ot xtal shaholds wll ap th gst bft fo th cd valu (ths uqu busss odl sus th PFA s abl to povd th hghst sk-adjustd vstt tus ad th lowst vstt costs th lf suac akt) Dvlop clt-spcfc poposals, pstos ad gotos th flct th uqu stuo of ach clt ad focus o addssg th ky pas Iclud lts ach poposal th wll ak vy clt fl lk a VIP accout Dsg ad couc a vy dtald plto appoach th addsss all of th clt s cocs about th costs of swtchg Pst ts ad pcs o sgl pag od to llust pc plcos o qustd ts Though ths w outsd-, soluto-basd sllg appoach, PFA has aagd to volutos th dusty bcaus thy v wo ot just oday clts, but so of th lagst copas Dak th pst a bh-takg facal valu ad akt sha fo PFA Th lf suac akt s ally qut sall ts of th ub of copttos ad th ub of hug clts, so f you w to psuad ght of ths clts to swtch povd, you sply d to off w ad btt solutos copttv pcs Th s wh w v do, ad th succss s alady vdt W v wo sx ajo clts sc w lauchd ths tv, Las Ellhav- Ads, Goup Excutv Vc Psdt PFA Pso, xplas O of th tv s ajo ws, Dafoss, s a xapl of a lag copo clt to who PFA has povdd a uqu soluto th usd th clt s stuo as th pot of dpu At Dafoss, thy pd thslvs bg a ladg copay ts of socal sposblty fo th ploys, ad thy off flxbl job odls fo th dsabld o jud PFA was abl to povd Dafoss wth a soluto th copasss ths dst ad sus job scuty fo ploys wth a flxbl job o lght duts du to dsablts o jus I t ay s slf-vdt th t s pot to custos you poducts ad svcs to th ds of you clts, but utl ow, ths has oly b do to a ltd xtt th lf suac dusty PFA, howv, has succdd toducg taload, soluto-basd sllg ad cosqutly alsg g sults W o l dlv off-th-shlf solutos ad had th ov to ou clts Istad, w cod a soluto basd o dtald aalyss of th dvdual clt ad th spcfc ds Ths s a w appoach ad t woks So fo ow o, t wll b stutal to ou abto of ot oly ag ou xstg clt bas, but sug futh ws th akt, Las Ellhav-Ads cocluds McEwa Las Ellhav-Ads, Goup Excutv Vc Psdt PFA Pso THE 8WWW WERE NAMED AFTER FAMOUS RIDERS IN THE TOUR DE FRANCE TO TELL THE STORY IN PFA Klostgaad Gustov Boo Vt Navao Sast Dlgado

10 10 ANNUAL REPORT 2011 DAILY MAERSK CASE BY INTRODUCING ABSOLUTE RELIABILITY, MAERSK LINE IS WRITING THE NEXT CHAPTER IN SHIPPING HISTORY THINKING OUTSIDE-IN

11 11 QUARTZ+CO Covyo blt btw Daly Mask pots Fd ad Itodl coctos to th covyo blt Daly cut-offs () pots Posd taspot ts btw pots Flxstow Bhav Rottda By Mchal Laus Shagha Ya Ngbo Th oc was a t wh you could st you wch by th ho of a vssl th habou Thos days a ov, as today oly o out of two vssls av o t Fo Mask L, ths ccustacs a ot good ough Th copay has adoptd a outsd- appoach to copltly thk th opoal odl ad tu to th old vtus of absolut lablty Tajug Plpas Though th outsd- appoach, w v gad a cla udstadg of wh ally ts to ou custos: lablty Thy do t ca whth ou vssls a o t thy ca about o-t avalablty of th cago As a dct spos to ths, w td th Daly Mask pojct to c a udlyg opoal odl bult o th ds of ou custos, Ol Padsgaad, Pojct Lad, Daly Mask, xplas Lt s xplo th dusty s hstoy to tuly appc th ffots bhd th Daly Mask tv: t all std 1955, wh Malcol P McLa, a tuckg tpu fo Noth Caola, th US, bought a stashp copay wth th da of taspotg t tuck tals wth th cago stll sd H had alsd th t would b uch spl ad quck to hav o cota th could b lftd fo a vhcl dctly o to a shp wthout fst havg to uload ts cotts Hs thoy was th ffccy could b vastly povd though a syst of todals, whch th sa cota wth th sa cago could b taspotd wth u tupto va dfft taspot ods dug ts jouy Cotas could b ovd salssly btw shps, tucks ad tas Ths would splfy th whol lstcal pocss, ad vtually th plto of ths da ld to a voluto cago taspot ad toal tad ov th xt 50 yas Wth th lauch of Daly Mask, Mask L s pushg th ffccy agda v futh ad wtg th xt chapt th hstoy of cotaso Ad ths hstoy has t othws chagd uch sc th d-90s wh wkly pot calls w toducd Basd o o tha 100 tvws wth so of th wold s lagst copas, Mask L cd a poduct wth daly calls (th dusty stadad s wkly calls) fo fou pots Asa, a vtual covy blt wth 70 of th lagst vssls cost oto ad a bdg pos o th total taspot t To lv up to th pos, Daly Mask cobs sv stgs fo fou pots Asa to th Euop to o twok abld by a ss of back-up plas cas of ufos vts Ou custos o l d to ca about vssl dpu t, tast t, wg t o dlays; all thy d to ca about s taspot t th t fo cut-off to cago avalablty th dsto Th bussss dpd o th lablty of ou svcs If th cago s dlvd l, t affcts th t supply cha Ou sach vald th f th cago s dlvd o t vy t, ou custos wll vtually vw shppg as a xtso of th poducto l Th supply cha costs would b lowd sgfcly by ducg th ds fo o-lad stoag, wokg captal ad adsto costs, Ol Padsgaad cotus Daly Mask was lauchd Octob 2011, ad alady th sults a pssv I th last qu of 2011, th o-t dlvy of cago was 98 p ct whch s sgfcly abov th dusty avag O th tad btw Asa ad Euop, th hadhaul ad backhaul cago volus casd by 15 p ct ad 17 p ct spctvly copad to 2010 Rad o wwwdalyaskco Ol Padsgaad, Pojct Lad, Daly Mask

12 12 ANNUAL REPORT 2011 IKEA CASE WE ALL KNOW THAT THE WINNERS IN A CRISIS ARE THOSE WHO STAY ON THEIR FEET ALL 12 ROUNDS WHEN IN ROME By Jacob Jøgs I ts of css, IKEA s o of thos bght spots th w all spd by IKEA s a global copoo opg o tha 35 couts wth o tha 300 stos ad 600 llo vstos p ya Whl oth tals acoss th glob luctly clos dow th stos, IKEA has xpcd gowth dug th last coupl of yas Ths s also tu fo IKEA Italy, ad ths s wh ou stoy bgs Back 2006, IKEA Italy was a facally st ad wll-pf copay th vthlss dcdd to bak o a jouy to cas sals ad poductvty, stg wth IKEA Foods, od to stad v st agast th copttos By ow, ths ffots hav stgthd IKEA Italy tdously, v ths ts of css, ad o potly th accoplsht has svd as a bst pactc xapl to oth IKEA stos acoss th glob Not a sgfc achvt cosdg th chags th hav occud th global cooy sc th ad th opst tubulc th busss vot Th fst task was to opts sals by offg custos wh thy wd, wh thy wd t ad always th IKEA spt: low pcs ad hgh volus Nxt was a poductvty

13 13 QUARTZ+CO IKEA AND THE ITALIAN FURNITURE MARKET INDEXED GROWTH IN (EUR MILLIONS) IKEA Italy Futu akt Italy povt pojct whch th t of wtg s stll ufoldg All wth o coo pupos: akg o fo th sa soucs I IKEA Italy, ou cultu s basd o two thgs: o s th ablty to always do btt, wok s ad gt th ost out of ou ploys Th oth s th way w pcv IKEA It s t just a job, but a way of lf a faly It ay soud tacky, but vthlss ths s th cas Mo spcfcally, ths as th w go to xt lgths ot to dsss ploys to duc costs Th aagt has b focusg solly o a poductvty hacg stgy, akg th ost out of wh w alady hav, Do Malda, Had of IKEA Foods Italy, xplas D o phasss how Th aagt ths cultu has pd th jouy has b focusg towads casg poductvty solly o a poductvty bcaus vyo tustd th ths hacg stgy, was about gowg as a copay ad ot about ducg staff Th akg th ost out of jouy bga wth a xtsv wh w alady hav asssst of IKEA Foods cut poductvty lvls Italy ad l xpadd to th st of IKEA Italy Each ad vy sto Italy was scutsd, lkg actvts to popl ad spottg bst pactcs wth ach ky actvty ad pocss Th aalyss sultd codos wth sv aas: fou wth busss povt ad th wth syst povts Ad th coclusos w staggg: by pltg ths busss codos, IKEA would b abl to pov th poductvty by p ct all whl dcasg opg costs by p ct Th ky qustos to ask w ptty obvous to us: wh dos ach ploy c ost sals ad ost valu fo th custo, ad whch actvts c ost valu fo th copay? If w could co up wth th ght asw, w would stay ahad of th ga Th goal fo us Italy s to stad st ts of css ad v st wh w a out of th woods May of ou copttos a stugglg, ad w s o oth way out tha d th ght thg ad wokg had ad do t ow, Do phasss Ths s o t to st o th lauls Th goal s cla: to c a st ad la IKEA ady to accl wh th css was of Do Malda, Had of IKEA Foods Italy 35 IKEA s a global copoo opg o tha 35 couts wth o tha 300 stos ad 600 llo vstos p ya

14 14 ANNUAL REPORT 2011 SAFEROAD CASE WHEN 106 LEGAL ENTITIES ARE WORKING LOCALLY, POTENTIAL SYNERGIES ARE LOST ONE HUNDRED UNITED By Jpp Wth ad Kal Hø Th stoy of SafRoad s ot o of dclg gowth o th opst css O th cotay, ths s a stoy about th v o challgg task of ufyg a locally dv copay to ap th bfts of copo sygs ad duc coplxty SafRoad s a ladg Euopa suppl of taffc safty poducts ad solutos wth a xtsv poduct potfolo agg fo oad akg, oad sgs ad lghtg colus to oad st systs, os bas ad ock suppot tuls Th SafRoad Goup cossts of 106 lgal tts wokg locally 23 couts ad o tha 2,600 ploys Th goup s a sult of uous acqustos whch hav cd a st posto fo SafRoad th akt, th xps of hgh tal coplxty It s t a asy task to aag a fagtd copay stuctu wth opos ay couts ad povd svcs to local authots whl coplyg wth local gulos ad quts, ad th goup sks ssg out o coos of scal puchasg Ths was dd th cas wth SafRoad, ad thfo, th bgg of 2011, th aagt dcdd to t a asoal tasfoo pocss to su th all tts w t just wokg wth a local focus, as was th cas, but bca o copay wth a copo dst to opts th pocsss acoss couts Howv, t was pot to th aagt th th tpual spt th local tts stayd tact, ad th thy cotud to opts local opos To solv ths dla, a xtsv pojct was td wth th cla objctvs: fst, also of sgfc soucg sygs acoss th goup o a shot- ad l-t bass Scod, dsg ad plto of a w goup pocut stuctu Thd, th us of a coo pocut fawok ad toolbox fo xcutg stgc pocut As wly appotd CPO, I quckly alsd th SafRoad, to a hgh xtt, was a fagtd busss du to th asoal stuctu th cosstd of ay dpdt, lgal tts wokg wthout a copo ad ufd dst Th goup s EXTRACT OF SAFEROAD S PRODUCT PORTFOLIO RUMBLE STRIPES

15 15 QUARTZ+CO 23 pocsss, but t s qut aoth challg to stadads poducts, cosold puchasg pactcs ad ta th full savgs pottal thoughout th t goup all 23 couts A chag of ths agtud calld fo a o algd stgy ad cla shad goals Th SafRoad Goup cossts of 106 tts wokg locally 23 couts ad o tha 2,600 ploys d wll, but th pottal s v lag Futho, du to EU gulo ad stadadso, th akt s gadually opg up fo obtag uch g coos of scal Ad addto, w ssg out o cla sygs acoss couts Ths s why w dcdd to wok o cg a o-copay dst, says Tho-Ek Ldbg, Chf Pocut Offc SafRoad Howv, chagg a st ad fly achod local dst s o asy task, ad SafRoad facd a g challg It s o thg to stablsh a ctal ad co-odd goup pocut stuctu ad df ffct Ov th spa of ght oths, SafRoad has wokd wth xtactg bst pactcs acoss couts ad fuctos By volvg th top aagt as wll as local puchasg aags ad local lads ad by aalysg plad puchass ky tts, SafRoad has b abl to stablsh a coo plfo fo goup pocut ad obta sgfc savgs o slctd poduct goups Th pojct has alady alsd a ub of postv ffcts cludg a algd stgy, a w asoal dsg, a coo laguag ad cla pocsss W hav tuly tak a bg stp towads stablshg a o-copay dst, ad w fos th sygs as wll as botto-l pact wll show quckly Now, w ust b th t taks had wok to kp coplxty bay, Tho-Ek xplas, ad h cotus: W v bgu th jouy towads bst pactc pocut, ad o potly w v bco capabl of asug ou bhavou ad su th w lvagg copay bst pactcs th suppl akt W stll hav a l way to go, but w cofdt th ths wll hav sgfc l-t ffcts fo SafRoad Tho-Ek Ldbg, Chf Pocut Offc SafRoad ROAD MARKING SAFETY BARRIER LIGHTING SIGNAGE GANTRY

16 16 ANNUAL REPORT 2011 RATOS CASE WHEN COMPLACENCY STANDS IN THE WAY OF CHANGE, A FRESH SET OF EYES CAN MAKE THE DIFFERENCE TIME FOR CHANGE By Ncola St Nw busss owshp ca s lk a tval topc, but t ad t aga, t has b pov th havg th ght owshp ca ak a tdous dffc ad bg postv chag fo vyo volvd th aagt ta, th ploys ad th custos Ths s th stoy about a copay th had fall aslp, but was bought by a pv quty fud ad awok to ach ts full pottal Th copay had lost Ou stoy bgs th su of 2010, wh th Swdsh pv quty clo Ros ts gy dug th last bought th Dash cabl TV ad boadbad copay Stofa fo ts pvous ow, TlaSoa fw yas of TlaSoa s owshp, as t was Wh w dcdd to acqu Stofa, ou dcso was basd o a xhaustv du dlgc cla th t dd t ft to TlaSoa s ovall of th copay ad a cla cocluso th t would ak ss W hav g spct fo th stgy copas th w acqu, ad w kow how dffcult chag ca b But th cas of Stofa, chags w dd, bcaus th copay was, ay ways, stll opg as t dd wh t was uch sall Th copay had lost ts gy dug th last fw yas of TlaSoa s owshp, as t was cla th t dd t ft to TlaSoa s ovall stgy, P Faklg, Ivstt Dcto Ros, xplas P adds: W saw a g pottal dvlopg th copay cocally by cg w poducts ad tactg w custos, ad th s wh ad us cuous Ou goal was to ak Stofa a st ad o ffct copay abl to copt agast th lagst play Dak, YouS W h Ros took ov Stofa August 2010, thy had a cla vw o wh dcto thy wd to tak Thy foud th Stofa dd to bco o ffct, to dvlop a cla stgy, cludg o abtous goals to stv fo, ad th th copay would bft fo a o algd aagt ta A bh of fsh a, so to spak Th focus of th stgy was basd o Stofa s fou poduct cgos, whch df th busss: TV chals ad packags sold though a assocos, boadbad, Voc ov IP (VoIP) ad tactv TV sold to dvdual custos

17 17 QUARTZ+CO It s o thg to df a w stgy; t s qut aoth to gt buy- fo th aso ad b abl to xcut th dd tvs W actually xpctd ths to b a dffcult task, sc Stofa was ply stuck old habts ad had dvlopd th ow vws o how to sv th custos; vws th w a bt too uch sd-out, ad ot s fo a custo ad ow pspctv Stofa dd t hav a cla ovvw of th coplxty th aso ad th wak lk btw poduct aas, sals actvts, custo svc ad fld tchcas Th aagt ta had a postv ttud to ths challg ad a cadd ds to c a o ffct ad od aso, P says wth a sl Th pofoud tst show by th boad ad Ros Stofa s futu dvlopt cd a vy postv ffct o th copay, accodg to P: Today, w s th vyo Stofa kows whch way th copay s hadg ad wh s xpctd fo th Evyo taks g pd achvg th dfd lstos ad tagts Ad ost potly, vyo s wokg th sa dcto Th sult was ot oly a clos-kt aagt goup, but th pocss also poducd xcptoal sults o th botto l Wth th w stgy ad th xcuto of a ub of pot tvs, Ros has aagd to pov th EBITDA ags by 21 p ct aoud o ya fo 185 to 225 llo Dash ko Ths pssv sults co fo w custos boadbad ad VoIP, casd TV sals, add-o svcs ad cost savgs A chag owshp ca hav a bg ad postv ffct, spcally wh th w owshp s clos to th busss Ros has bought w pspctvs ad das to th tabl ad has b abl to dtfy xpdt pocsss ad ffct lts th aso, to whch Stofa thslvs had bco bld Today, Stofa s a st ad o copttv copay, ad o of th bst pf Ros cut potfolo of 19 copas P Faklg, Ivstt Dcto Ros Ju 2010 Fbuay 2011 Ju 2011 August 2011 Ros acqus Stofa fo TlaSoa Stofa s aagt ad Ros bg foulg a w stgy Th w stgy, Stgy 2014, s lauchd tally A w CEO, Klaus Høg-Hags, s appotd Th pvous CEO s appotd vc-chaa of th boad ad s stll wokg Stofa

18 18 ANNUAL REPORT 2011 ARLA FOODS CASE GETTING CONSUMERS MORE INVOLVED IN THEIR DAIRY PRODUCT PURCHASES HOW TO IGNITE CONSUMERS PASSION FOR DAIRY? By Su Nab Fdks Not ulk ost oth dusts, th day dusty has suffd dug th cooc dowtu wth a casg ub of cosus choosg poducts accodg to pc h tha qualty o bad Budgt poducts fll up supakt shlvs, offg a low-cost altv to th stavd cosu Not supsgly, th css has also affctd th global day copay Ala Foods whch has s a cla chag cosu bhavou Studs show th 40 p ct of all Dash cosus do t hav a pfc fo a pcula day bad Thy buy whv s o th shlvs, wth pc h tha qualty ad tast dvg th puchasg dcso Not to to th fact th day suppls s to hav b lulld to a fals ss of scuty, havg glctd fo so t to dvlop tasty pu poducts of hgh qualty May cosus hav stoppd akg gagd dcsos wh thy shop fo gocs thy choos th chapst altv whch vtually wll dvalu th qualty of day poducts Slaly, th day dusty has ot assud sposblty fo dvg ad xplotg th oppotuts of dvlopg poducts th appal to thos lookg fo qualty ad tast At Ala Foods, w caot just stad by ad wch ths happ Th s why w v lauchd a w stgy wth th pupos of

19 19 QUARTZ+CO PASSION-FOR-DAIRY INITIATIVES Uka gout chss A slcto of ght uqu gout chss basd o tadtoal chs-akg tchqus, ud fo ay yas ad sold xclusvly to staus ad spcalty shops Ala Foods flagshp sto I Apl 2012, Ala opd a sall flagshp sto Tovhall Cophag, akg th xclusv Uka chs l avalabl fo cosus fo th fst t Vdg achs wth day poducts Th fst vdg ach s alady stalld th Zoo Cophag ad o a to follow, spcally schools to su a halth altv to th kds luch pack stg passo fo day a cosus ad ploys, dvg th dvlopt of ach cgoy stg fo th top ad supplyg ovv pu poducts W d to buld a cultu of pd ad passo fo vy sgl day poduct w ak Coff s a g xapl th such a chag s possbl: 20 yas ago, th slcto was ltd to a fw bads ad th tst was o; today th a a yad of chocs, ad cosus hav a cla posto gadg th favout typ of coff oast, aoa, flavou o v whch bld thy pf, Pt Gøtz-Cals, CEO of Ala Foods Dak, xplas As o of th lagst poducs of day poducts th Nodc couts, Ala Foods ol s to su dvsty ad ovo wth th poduct cgos whl ladg th way a toal vot wth casgly fc coptto Ala Foods stgy s thfo thfold wth a sultaous abto to dv hgh-d ovo ad qualty, to dvlop w xctg day cosupto occasos th asta sgt ad to cotuously a cost-copttv copad to toal coptto Ou oblgos a ay Ala Foods W d to b abl to off a cost sstv altv though ffct ass poducto ad th sa t dvlop tstg pu poducts fo th o cosctous cosus But o potly, w d to su th w do t d up wth a akt fo day, as s ay oth couts, wth a h ltd poduct offg wth ach cgoy, paly dod by budgt poducts W d to gt passo, bgg wth th pu sgts, whch wll vtually c a ppl ffct thoughout all poducts ad pc sgts, sug choc, qualty ad valu fo all, Pt udls Aoth tstg td volvg cosu bhavou ad pfcs fo o pu poducts s th casg tst th Nodc ktch th cobs a g focus o gout qualty wth th us of local vyday poducts Ths s claly a op vto fo day poducs such as Ala Foods to b th fofot of ovo, dvsty ad cgoy dvlopt Ala Foods wll bg th tasfoo fo wth Bfo w ca xpct passo fo day a cosus, w ust lv th passo a ouslvs To ak ths happ, w v volvd all ploys th stgy ad plto pocss W all d to tak owshp, ad th aagt ta ust wok o bakg dow bas th hd passo floushg, Pt xplas As p of th pocss, Ala Foods s wokg o stalg th poduct potfolo as wll as o dvlopg w poducts ad usg w chals to xpad th akt, thus cg w cosupto occasos A xapl of ths s th stallo of 800 cools ad vdg achs Dash schools ad oth sla placs to off a halthy o-th-go altv Offg day poducts vdg achs s qut uusual Dak; t ay, howv, c w day cosupto occasos th futu Ala Foods wll bg th tasfoo fo wth Bfo w ca xpct passo fo day a cosus, w ust lv th passo a ouslvs Pt Gøtz-Cals, CEO of Ala Foods Dak

20 20 ANNUAL REPORT 2011 YEARLY CSR INITIATIVE WHY QUARTZ+CO SENT THREE CONSULTANTS TO AFRICA TO CHANGE THE WORLD OR JUST A CORNER OF IT ENTREPRENEURING IN NAIROBI By Sof Wls As p of ou CSR pa, w wsh to hlp thos who a lss fotu tha us, ad d so b abl to gv sothg back to socty whl th sa t povdg lf-chagg xpcs to cosults Quz+Co I th su of 2010, th cosults fo Quz+Co packd th bags ad lft ho to hlp Kya tpus th qust to buld sustaabl bussss Fo da to acto was th cocpt bhd th pojct Naob, Kya Th pupos? To pcp, as advsos to Kya tpus, a 48-hou cotst wth a gad pz of 25,000 uos fo th w Th a bhd th pojct, Kst Buch, s th foud of th tpual copay, HuaIPO wth psc Naob ad Bl HuaIPO sks to c gowth by coctg local Kya tpus wth f xpts Quz+Co cosult Maa Hyltoft ad Kst tally dscussd th da fo th 48-hou cotst ov a cup of coff th spg of 2010 Th cocpt was cla, but Kst dd th sklls to sc ad slct th bst of th tpus busss das al wth th pofssoal xpc to hlp ad gud th Kya tpus wth th pojcts Ths was wh Quz+Co ca to th pctu Th pupos of th pojct was to c a ctv fo local tpus to bg fowad th busss pojcts, ad th tu hlp th stgth th das Ad hc, o a sall scal, cotbut to th co of sustaabl bussss Afca Fo Quz+Co, ths pojct flcts a f blf cotbutg dct tag ad tasf of kowldg ad capablts as th ost ffctv way of cg valu fo all ps W blv th a copay such as ous ca c o valu fo Afca by vstg ou t ad kowldg, wokg po boo h tha by oly gvg a doo to o of th ay wothy NGOs wokg th go Ou a s, of cous, to c a lastg pact Lk th old sayg: gv a a a fsh ad you fd h fo a day Tach a a to fsh ad you fd h fo a lft, Maa xplas wth thusas Th th cosults fo Quz+Co, Maa Hyltoft, Plla Måtsso ad Claus Ksts, spt two wks Naob, dug whch thy advsd th tpus thoughout th 48-hou cotst Aftwads, all tpu tas bakd o a tag pa to su a sold plfo fo th fothc busss DAY 1 DAY 3 Sttg up fo th boot cap ad tstg th cocpt wth M-Fa who wo th cotst th ya bfo Th 48-hou boot cap bgs th 12 tas a ady fo th bggst challg of th lvs