OperationsStrategic direction

Strategic focus produces results

Cision's strategic revision in 2006 reflects its aspiration to create greater value for clients and shareholders. The goal is to strengthen Cision's position as a world leader in media monitoring and reputational management. Cision wants to be the clear choice to partner with senior executives and professional communicators in large international companies and organizations. Cision's integrated, customized services make clients more competitive and provide measurable value.

The Group's work has focused on profitable growth through innovative, market-leading service development. Several objectives were achieved in 2007, contributing to Cision's improved results. Following are some of the key steps that were taken:

Integrated, customized services create clear, measurable value

Cision offers clients integrated services with analyzed information. These services support the entire communication process. Cision annually invests 4 to 5 percent of its revenue in service development, a high figure in the industry.

In 2007 Cision launched a new generation of the CisionPoint service platform in the North American market. This "Software as a Service" (SaaS) platform is unique. The fully integrated functions and a new user interface greatly increase the efficiency and quality of clients' communication work. Its reception has been very positive.

Another major focus during the year was the start of development work on CisionPoint for the European and Asian markets. This new generation will gradually reduce around twenty different technical platforms into one. The launch is scheduled to begin in 2008.

Focus on large, international clients changes the client base and services

By focusing more on large, international clients and integrated, customized solutions, Cision is gradually changing the structure of its client base and services. This change is supported by the globalization trend among clients and is an important cornerstone in the business model. Revenue per client will rise through higher sales of value-added, knowledge-intensive, flexible solutions. This includes more revenue from integrated solutions and professional advice. The business model is aimed at a higher share of value-based sales with the more subscription-based and recurring revenue. The sales organization for this was strengthened in 2007 by recruiting sales experts with experience working at a strategic level in international environments.

In 2007 marketing and sales efforts were further intensified to increase the share of international projects. More clients want monitoring and integrated communications across multiple markets and regions of the world. Cision's global service capacity and local expertise provide clients with value-added few other companies can match. Among new international clients are the hotel chain Rezidor, Yahoo, TeliaSonera and the International Red Cross.

The share of revenue from subscriptions and similar services reached 55 percent during the year. More clients are committed to systematic media monitoring coordinated and brand management for entire groups and larger market areas. A growing share of subscription services and other recurring revenue sources will provide Cision with more consistent earnings and lessen its dependence on economic conditions.

Cision has its strength in a large base of existing clients, nearly 30,000 strong. The many profitable, growing clients are a major asset. Added sales from existing clients increased in 2007, also raising revenue per client. A sharper focus on profitability has also resulted in the phase-out of unprofitable contracts.

Strong position as a global partner through a distinct brand and expanded international presence

Cision is focusing on a standardized global offering under a uniform brand name and identity. Serving as a global partner offers clients advantages in terms of competence, cost and competitive strength. These same advantages will benefit Cision and provide better leverage for international investments as well as a better geographical spread of risks. In addition to its growing presence in key markets, Cision has an international network of partners that gives it the industry's best global coverage.

The name change to Cision and coordination under a uniform global identity was an important strategic step in 2007 that gives the company greater credibility as a global partner, improves the impact of its marketing and increases the value of its brand.

Cision's international presence was strengthened in the Benelux countries in 2007 through the opening of the sales office in Amsterdam. These markets were previously covered through cooperation agreements. The number of global groups based in the Netherlands and Belgium and the dynamics of local demand motivated this move.

The Chinese market is becoming one of the global economy's largest. Most major multinationals are operating there, at the same time that domestic companies are rapidly globalizing. One of the main growth sectors is communications and media. To meet client demand, Cision opened a sales office in Hong Kong, along with a Group-wide production unit in Shanghai for international clients.

Improved internal efficiency makes Cision more competitive

The revised strategy stresses greater internal efficiency and cost controls. Processes are being streamlined and opportunities for better economies of scale are being utilized. The increased digitalization of services facilitates cost efficiencies.

A number of measures in 2007 contribute to greater efficiency. The new generation of CisionPoint launched in the US replaces around ten different technological platforms and provides greater efficiency potential. The new unit in Shanghai will improve the production process used by group units internationally. During the year a new, uniform coding tool was introduced as well, to reduce coding costs associated for the growing number of articles in digital format.

During the year a new Group-wide purchasing function was established as well. As a global leader in media monitoring and analysis, Cision has a competitive advantage by being able to cost-effectively buy from the best suppliers.