Investors

Henrik Ekelund

President & CEO


Words from the CEO continued

Our Vision

When BTS was founded we set as a vision to become “world leader in business simulations”. We achieved this vision in 2004. Our new vision includes becoming the World’s Leading Learning & Development Consultancy – innovating how companies change, learn and improve. This vision holds an exciting challenge for us. Based on our position today in terms of client base, portfolio of products and solutions and our people we are convinced that we will achieve it.

There are several drivers behind our sustainable, profitable growth:

  • We operate on a growing market
  • Our offering has strong competitive advantages
  • We carry out acquisitions well on a fragmented market
  • Our people are the best in the industry.

Globalization and increased competitive pressure drives growth in the corporate training market…

  • When Cingular and AT&T Wireless integrate as a result of one of the world’s largest mergers ever…
  • When Sony Ericsson develops its leaders to be equipped to deliver future, profitable growth…
  • When Juniper Networks drives a cultural shift in its 2,000 people worldwide sales force to evolve with the changing trends in their market…
  • When Norway Post creates a more profitable, business-oriented company prepared for change……
  • …they all decide that investments in the capabilities and competencies of their people are critical to success. This is a development and an approach that apply across industries and geographies; which is why our market is growing 5-8 percent per year.

…but the traditional methods are losing market share

Traditional training comes in formats like lectures, power points, binders and group discussions. These can be interesting and stimulating exercises but the necessary results are not delivered; the job doesn’t get done. The job gets done when the participants, the learners, change their business behavior leading to positive business results.

Research shows that such results are achieved when adults learn by doing through practical exercises in an environment closely connected to their job, while having a clear goal and motivation to change. The approach of BTS works in harmony with these well-researched principles of success.

This is why companies like Cingular Wire-less, Sony Ericsson, Juniper Networks and Norway Post choose to work with BTS to accelerate change and improve business results.

Customers are buying more from BTS

Our value proposition is to develop the mindset and capabilities your people need to accelerate and improve business results. We make sure this delivers superior results and ROI to our customers through:

  • Discovery-based solutions – Learning by doing – the most effective way to learn and change
  • In-depth customization – to what is relevant and actionable on the job
  • A comprehensive process that secures and measures the business impact.

All our solutions are built on “Learning by Doing”; participants learn through discovery-based solutions – via IT-based simulations, manual simulations, engage maps, EngageMaps – in the classroom or online.

The solutions are customized to each customer’s business and goals. The results are secured through a thorough preparation, execution and follow-up process for each learner in co-operation with his/her manager.

We offer our clients a broad range of solutions covering business acumen, leadership and sales. We offer global coverage and a relentless focus on quality and results. We have a world-class organization of top-quality people.

Organic growth is our base

The foundation and majority of our growth is organic – expansion of existing offices, geographical expansion in the form of new offices and continuous development of new products and solutions.

During 2006, revenues from existing offices grew significantly. We also opened new offices in Brussels and Chicago and launched a large number of new solutions and products.

BTS still has a low market penetration, and we have a strong base for further organic growth.

Our acquisitions continue to be successful

In recent years, we have also learned that we can grow successfully in our highly fragmented market place through acquisitions.

So far, we have completed five successful acquisitions, and these acquisitions help drive profitable growth and add new solutions, markets and talent – which creates a broader base for continued growth.

We plan to continue on this route. Our market place is very fragmented, and there are many opportunities for attractive acquisitions. BTS has a competitive advantage through its track-record in well-implemented integration processes, which now increases the number of opportunities we get exposed to.

Prospects for the future

We have a long history demonstrating our capacity of sustainable organic growth, and in recent years we have also gained experience from successful acquisitions. Our market continues to grow. Our market penetration is still very low. We are in a stronger position than ever before to deliver value to our customers and compete in the market place.

Based on continued strong market conditions for BTS and the completed acquisitions, the profit before tax for 2007 is expected to be significantly better than the previous year.

Stockholm, March 2007
Henrik Ekelund
President & CEO of BTS Group AB

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