Statement from the CEO 

From the 2008 Annual Report

In a time of economic uncertainty, it is very important to me to explain to all shareholders why self-confidence is strong among us at Inmeta, and why we believe that we have a firm base for continued good, profitable operation. One of the key reasons is our financial position, which is solid. Just as important, however, is the positive development of our two business areas – Inmeta Licensing and Inmeta Consulting:

Inmeta Licensing enjoyed remarkable growth in 2008. There are two reasons for this: firstly, we have succeeded in most of the initiatives we have launched within the major customer segment; and secondly, our focus on the SME market has generated a large volume of concrete results. Inmeta Licensing is distinguished by customers annually renewing, expanding or extending their software agreements. Inmeta’s customer base has grown appreciably for many years, and is considered solid. This position provides Inmeta with good predictability and recurring income.

Through focus on standard software, such as Microsoft products, we follow the business processes that both private and public sector players consider essential – irrespective of times of crisis. It is often the case that software is a key component in the work to improve the efficiency of various processes. This is one of the reasons why the Gartner Group believes that the software market will continue to grow in 2009.

Inmeta Consulting comprises around 80 consultants, and enjoys a central position at large companies and organisations. We have strong, long-term customer positions which are largely based on framework and annual agreements. This contributes to predictability, as regards both capacity utilisation and Inmeta’s earnings.

Inmeta Consulting has a distinctive senior environment, which is important during times when many customers are obliged to reduce their costs, and when business cases are tested more thoroughly. We respect this situation, but are sure that with continued correct focus on customer and competence development, it will in time lay the base for creating an appreciably larger consultant environment.

The purchase in September 2008 of Exense Consulting ASA, with 50 sector specialists, has also provided very good growth – in the forms of expanded competence, new customers and additional commissions. In 2008, the unit has contributed good profitability and serious professional weight, where only the last four months were included in Inmenta’s accounts.

Good forsight, even in turbulent times. Financially, Inmeta is a rock-solid company, which is particularly important in times of recession. We have a net cash position, strong balance sheets and, in particular, good profitability. This is a position we wish to exploit, as we have done successfully in recent years. We are constantly on the hunt for companies with the potential to reinforce and develop our business model. As a part of this approach, we are looking especially at companies that can complement our industrial platform in Norway.

In addition, we continuously evaluate the opportunities that exist in Denmark and Sweden, where we wish to play a role and utilise our Norwegian competence. At the same time, it must be stressed that we are conservative and thorough in our assessments. We are to create healthy, long-term growth and the Group must also stand firm in periods of economic uncertainty.

Inmeta has launched a buy-back programme for its own shares, and consideration will be given to using these shares in connection with possible acquisitions.
2008 was another record year for Inmeta, with turnover in excess of NOK 400 million, and EBITDA of more than NOK 22 million. With this backing, we are enjoying good momentum in 2009. It is my ambition – and that of the management team – that when we look back at the current year, we will be able to see that Inmeta has enjoyed another year of profitable growth. This is to be achieved through strong sales and marketing work, combined with robust cost control.

Group President and CEO

Jarl Øverby