TRUST&QUALITYBOOK2015

inancially, 2014 started well in all of our

operating countries, but the second half

proved to be challenging, particularly in

Finland and Sweden. Norway, Denmark

and the Baltic States developed well

throughout the year, and also Poland

made an encouraging start as a new

Inspecta country. Market uncertainties and the postponement

of industrial investments in the second half of the year pushed

our group level results below our targets. Considering the

challenging market conditions, we managed to keep ourselves

on a moderate growth track.

Furthermore, we made many important operational moves

during the year. We expanded our operations to Poland,

turned Norwegian operations profitable, started NDT

operations in Lithuania and Denmark, expanded our real

estate services in Finland, signed new big real estate contracts

in Sweden, and appointed new country managers in Estonia,

Latvia and Finland. These are just a few examples of our

dedication to strengthening our leading market position in

the Baltic Sea region.

In order to take the next steps in the right direction, we

have set down a new strategy for Inspecta up until 2020.

We are calling our new strategy “Inspecta – the asset health

company”. It outlines our operations in three main business

areas: industrial assets, built environment and certified

operations. We have scanned our strengths, our customers’

views and the market situation and overall outlook. There

are great opportunities for us to gain further market shares

in all of our operating countries. In this Trust & Quality

Book 2015, you will find many exciting stories on how we are

moving ahead on our growth track.

BEST PEOPLE IN THE FIELD WORKING CLOSE TO CUSTOMERS

In order to grow sustainably, we must pay careful attention

to the factors that enable us to work effectively. In our new

strategy, our number one focus area is personnel development.

All our results are generated by our personnel. We will also

concentrate on improving our work order management using

digital tools and drawing on our internal spirit of cooperation

locally and between countries. We can only succeed by

working well together. Finally, we are going to use customer

feedback more systematically: happy customers mean a good

future for all of us.

An essential continuation of the strategy work is to find

a good new home for Inspecta, as our current owner’s

investment period is running out. We can expect our strategy

to form an excellent basis for the next moves in this respect.

During this year we will communicate our strategy to

everyone, looking forward to feedback and new ideas. Both

employee and customer feedback received so far tell us that

we are strong in our competence and quality. Our challenges

lie in setting up a clear direction and in leading the way for

everyone. Let us seize these challenges and turn them into our

strengths.

After the strategically important and operationally active year

of 2014, I would like to express my thanks to our customers,

personnel, partners and owners. In our home market, Inspecta

is the number one player. Thanks to all our hard work, we can

be proud of our company.

Inspecta maps out a new strategy

F

CEO

CEO, Inspecta Group

Kari Aulasmaa

The year 2014 was similar to 2013 for Inspecta, with much good

news, but also some difficulties. At the beginning of 2015, we

see ourselves at a turning point as we set down a new long-term

strategy for our company and move forward with it.

2

Kari Aulasmaa, CEO. “In order to grow sustainably, we must pay careful attention to the factors that enable us to work effectively. In our new strategy, our number one focus area is personnel development.”

3

Inspecta 2020 – the aGROWTH ENABLERSThe fundation of our strategy 2020 is our personnel – the best people in the field

working close to customers. Our target is to grow from about 1,500 people and

180 million euros in turnover to more than 2,000 people and 300 million euros by

2020. Sustainable growth requires effective people and modern tools, as visible in

the growth enablers of our strategy.

In everything we do, we want to reach superior customer experience

by paying full attention to customer needs. We have estimated

our market to be about 1,500 million euros now and about

2,000 million euros in year 2020. A strong service and

sales culture will make us commercially agile,

enabling us to push our current market

share of 12 percent up to beyond 15

percent.

GROWTH ENABLERS

GROWTH AREAS

COOPERATION CLIMATE

CUSTOMER FEEDBACK

WORK ORDER MANAGEMENT

PERSONNEL DEVELOPMENT

TARGET 2020

Best working place in the branch

TARGET 2020

Fully digital working environment

TARGET 2020

Feedback in full use across businesses

TARGET 2020

Collaboration as a genuine asset

TARGET 2020

Sustainable growth record

and view

INDUSTRIAL ASSETS

4

asset health companyGROWTH AREASWe are focusing our growth on four areas, all related to asset health. Industrial

assets form the most traditional part of our businesses, where we will keep on

growing in new areas and services. In the

built environment, we will look for new

real estate, infrastructure and construc-

tion assets to be inspected, moni-

tored and certified. Furthermore,

certified operations and new

markets offer attractive

growth opportunities.

Timo Okkonen, Chief Commercial Officer:

“During 2014, we renewed our strategy by taking a look at our full market and all

our operations in different countries. We wanted to find not just areas of growth,

but also the factors that make it possible for us to move sustainably forward.

The end result is our 4+4 strategy with four enablers and four growth areas,

which together define Inspecta’s development focus for the coming years.”

CORE SERVICES

TARGET 2020

New geographic positions

established

BUILT ENVIRONMENT

TARGET 2020

Strong market leadership in full offering TARGET 2020

Sustainability certification

services

CERTIFIED OPERATIONS

Testing, measuring & monitoring

Inspection, verification & control

Certification, assessment & audit

Consulting, technology & training

We want to work for the

success of all our key customer

segments by ensuring

compliance with requirements,

by minimizing risks, and by

creating information value for

our customers. In this way, we

are transforming our Testing,

Inspection and Certification

(TIC) services towards asset

health partnerships, including

consulting and training on

requirements and risks.

NEW MARKETS

5

Give them a laptop and they’ll work anywhere. Inspecta’s tech-savvy

Estonian road warriors work smarter and faster.

Siim Peetrimägi & German Vimb

OUR INTERNAL SUSTAINABILITY PRINCIPLES

They drive up to 700 km a week, spending up to half their

working week on site. They’re on the road five days a

week, inspecting gas installations, elevators and pressure

equipment.

Tallinn-based Chief Inspection Expert Siim Peetrimägi and

Conformity Assessment Expert German Vimb have seen

their daily work revolutionized by digital technology over

the past five years.

“My everyday tool is my smartphone. I use various apps

and cloud services to access data and create notes that can

be easily transferred to databases,” says Vimb.

“A VPN connection allows me to work from home and be

more productive,” adds Peetrimägi. “We have received

very positive feedback from clients. By processing their

installation documents digitally, we save them the trouble

of printing files and traveling between offices. We have

saved a lot on fuel and paper – and many cubic meters in

our archives.”

Estonia is a pioneer in e-government and digital age

initiatives. This year will bring major changes to technical

inspection procedures. “Inspection reports will be done in

a government-managed digital environment. The digitally

signed reports will be emailed to clients automatically.

Reports can be filled in on site via a laptop or tablet, and the

report is in the client’s email before we even leave the site.”

If Inspecta’s ‘paperwork’ is location-independent, why

waste money and energy on rented office space? “I don’t

rule out the possibility of abandoning conventional office

space in the future. But there will always be a need for

face-to-face exchanges,” says Vimb.

“Being mobile, flexible and innovative is our future. It’s

what our clients expect of us,” concludes Peetrimägi.

SO LONG, OFFICE CUBICLES?

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6

raditionally, most of Inspecta’s operations are focused on Industrial

Assets. It is important that our industrial customers see us as a

frontrunner with the best expertise and tools. This is what we are

working for in all our daily operations, developing our offering and

reaching out to new geographical areas and industries.

Three main service areas form the foundation of our Industrial Assets offering:

component manufacturing, investment projects, and operations and maintenance.

By supporting our customers in these areas, we contribute to the health of Industrial

Assets throughout their lifecycle. Inspecta is predominantly a field organization. Our

customers know they can rely on our experts’ in-depth knowledge and competence. In

component manufacturing, we check the quality of components and welded joints, and

in investment projects, we help ensure a facility’s long lifecycle through high quality

supply control. During the operational phases of industrial facilities, we ensure that our

customers’ assets are safe and that the risks are under control.

For us, our fine reputation is the ultimate merit

and measure of how well we perform. We will

continue to grow in our Industrial Assets offering

by adding new areas and services to meet and

exceed our customer needs. In our current home

market of eight countries, we see opportunities to

gain market shares and support customer projects

also globally. Furthermore, we intend to expand

into new countries and industries.

INDUSTRIAL ASSETS

T

INTRO

SEE PAGES 8–11

An eye on Industrial Assets

7

elders at times

need to have their

skills certified at

very short notice

so they can take on

new assignments.

For the past year,

welders have been able to receive

a welding certification swiftly at

Inspecta’s specially built Welding

Studio in Malmö, Sweden.

The Inspecta Welding

Studio makes it possible for

welders to acquire specialist

qualifications, and further their

professional skills. In addition

to completing a welding test and

receiving their certificate, they can discuss and evaluate

their work with a welding inspector. The service has

proven to be very popular with companies in southern

sparks the interest of small businesses

Welding Studio

Sweden, and over 150 welders

have already been certified.

“Our customers are very

satisfied with the Welding

Studio,” says Sales and Market

Manager Fredrik Johansson,

who heads the facility. “We are

among the first in the industry

to offer this concept, which

fulfills a definite need, especially

for small business owners.

Customers have been especially

pleased with the combination of

high availability, speed, service

and reasonable cost for the

service.”

The Welding Studio offers

both planned certification and certification at very

short notice, as well as evaluation of work samples.

In most cases, the welder can receive a new certificate

W

Fredrik Johansson on the right.

8

immediately after the welding exam.

“Often welders will realize that they

don’t yet have the required skills for

a given assignment, and we can help

them take the necessary steps to acquire

those skills. This is where we are at our

best,” says Johansson.

Based on the first year’s success

in Malmö, Inspecta is already looking

to expand the Welding Studio to other

locations. “The service really brings a

lot of value to the customer, as welders

can evaluate their work objectively,

seeing what is good and what needs to

be developed. Ultimately, this allows

companies to improve the quality

of their products and deepen the

trust with their own customer base,”

Johansson says.

NDT testing,

Inspecta a forerunner in Norway

NEW TESTING METHODS IN THE PIPELINE Advanced non-destructive testing services

keep undersea equipment in top condition.

Non-destructive testing (NDT) is used as part of manufacturing or installation inspections to ensure quality demands are being met. For example, radiographic or ultrasonic testing is used to check the integrity of welded joints. Inspecta is an accredited player that offers a comprehensive range of non-destructive testing services.

In Norway, a lot of Inspecta’s non-destructive testing work is done for a particularly tough environment – on undersea equipment. “The testing can be complex, as installations typically include both new and older equipment,” says Runar Meland, Regional Manager, Inspecta Norway. “Furthermore, the welds can be combined with up to three different materials.”

For these demanding applications, Inspecta has had excellent results with advanced NDT methods alongside standard testing services. These methods include phased array ultrasonic testing as well as TOFD (time-of-flight diffraction) ultrasonics.

A phased array ultrasonic probe consists of several transducer elements that operate independently. By controlling the timing of the ultrasound pulses from each element, the direction of the sound wave emitted by the probe can be steered electronically. The method highlights the exact location and size of any defects using graphic color images. TOFD ultrasonic testing detects and calculates the depth of subsurface weld cracks using the diffraction patterns of ultrasound waves from the weld joint.

“This is quite a new way of thinking. Until now phased array testing hasn’t been used on the vintage welds found on much of the undersea equipment currently in service in the North Sea,” Runar Meland notes. “These advanced techniques have generated a lot of interest with some of our major customers.”

Meland predicts that in the next five to ten years, phased array ultrasonics may replace much of the testing that is currently being done with X-ray radiographics. “This will bring clear benefits also in reducing the radiological impact of these essential testing procedures,” he concludes.

Runar Meland, Regional Manager.“This will bring clear benefits in reduc-ing the radiological impact.”

9

I

“After a job well done, the satisfied customer is our best business card.”

nspecta inspects all kinds of pressurized equipment,

from small measuring devices to powerful pressure

vessels. At large power plants, boiler inspections are

typically scheduled every four years, and pressure

tests every eight years. Thomas Lorentz-Petersen is

an inspector with Inspecta Denmark. He has long

experience with demanding inspections of power plant boilers. “We

always work closely with our customers,” he says. “The first thing is

scheduling the boiler inspection at a time that is suitable for the client.

We will be there at whatever time they need it.”

The inspection starts with a review of the service history and

documentation of the boiler. “I want to have an overview of what is

going on with the boiler and power plant, including any repairs that

have been made in the last few years,” Petersen says.

The next step is a visual check inside the boiler, starting on the

water side. “We are looking for any signs of cracks and corrosion that

may be caused, for example, by impurities in the feed water system,”

says Petersen. “This is followed by an interior inspection of the furnace

side of the boiler, where we also look for corrosion.”

NO SHORTCUTSSafety is essential in this line of work. “Before entering the boiler, all

valves and pipes are closed and their position verified manually. As

a safety precaution, someone also needs to stand outside while I’m

working inside the boiler,” Petersen notes.

The visual inspections are followed by pressure testing of the

boiler, usually on the following day. Finally, the boiler is fired up and

the correct operation of the safety valves is verified. “This procedure

makes a lot of noise, so we need to notify the local authorities in order

to minimize the disturbance to the surrounding area,” says Petersen.

If any safety valves are to be reconditioned, the supplier of the valves

must be approved for this work.

Once everything is in order, the valves are marked with inspec-

tion seals bearing the inspector’s number. Finally, Petersen will write

his inspection report and discuss the results with the customer.

“This job calls for 100 percent honesty, even if the customer

doesn’t always like to hear it,” Petersen notes with a smile. “Everyone

wants to save money, but ensuring top-notch condition of industrial

boilers is not only critical for safety, but it is also essential for the long-

term financial benefit of the company. Ultimately, this is something

everyone can understand.”

Boiler inspections

Performance under pressure Safety, precision and integrity are essential

in power plant boiler inspections

Jouni Koivumäki, Inspecta Finland’s Regional Industry Director.

Going international with new services

10

ith over 300 services to

more than 75,000 customers

through offices in eight

countries, Inspecta can

support companies that are

extending their operations

internationally.

“We are still more or less a local company, but

international assignments are growing in fields

where we have special expertise,” says Mats Bergman, Manager of Advanced Testing for

Inspecta in Sweden.

One example is the inspection of recovery

boilers, in which Inspecta has long experience

in Finland and Sweden. Several major industrial

companies have shifted their home markets

from Finland and Sweden to the rapidly

growing paper and pulp industries of South

America and Southeast Asia. Inspecta has

been able to follow and assist with inspection

services in both new investment projects and

maintenance shutdowns.

By choosing Inspecta, the client not only

gets access to the latest testing methods, but

also benefits from an extensive knowledge base

of similar projects. “Clients do appreciate our

efforts to put new technologies into use. When

we are looking for a solution to a problem, it’s

a joint venture. Things tend to be easier when

you work with the client, not for the client,”

says Inspecta Finland’s Regional Director Jouni Koivumäki.

INTERNATIONAL BUT LOCALThe same technologies, test methods and

best practices can be utilized in each Inspecta

country, but the specific needs of companies

will also vary depending on the industrial base

in each country. “In Norway and Denmark, we

have a large offshore and shipping industry, but

not in the other Inspecta countries,” notes Mats

Bergman. “Sweden and Finland, meanwhile, are

distinguished by large pulp, paper and nuclear

sectors.”

The key to Inspecta’s success has been

to follow Nordic companies as they go inter-

national. “After a job well done, the satisfied

customer is our best business card. A good word

and good reputation spread rapidly within the

industry,” says Jouni Koivumäki. “Inspecta has

been going upstream, investing in equipment

and in the intellectual capital of its employees,

making it possible to deliver better, smarter and

more cost-effective services to our clients.”

WMats Bergman, Manager of Advanced Testing.“International assignments are grow-ing in fields where we have special expertise.”

Reaching new markets

11

In July 2014, Inspecta acquired the Polish testing and diagnostic company EPTSiL

from Polinex-Mostostal SA Group. Poland’s central location and the EU’s sixth largest

economy create significant growth opportunities for Inspecta and its customers.

Mutual respect and an attentive ear make for a seamless

merge of Inspecta and its newest family member, Poland.

When two companies from different countries and different

cultures merge, working together can sometimes pose

a challenge, but when the chemistry is right, the ‘flow

mode’ happens naturally. This was the case when Inspecta

acquired EPTSiL, part of Energomonta -Północ Ltd.

“It was a very good move for both sides. We gained a

stable owner, and we can, in turn, help Inspecta tap into the

opportunities of a market with a strong industrial base,”

says Warsaw-based COO Włodzimierz Adamik.

However, rebranding for this 62-year-old, highly respected

company recognized as Poland’s leading industrial

laboratory was not easy. “We had a very strong brand of our

own. Our history is of course important, but the integration

process has gone very smoothly,” says Country Manager

Tomasz Gawro ski, who leads a team of 85 in various

locations around Poland.

Unsurprisingly, there have been some hurdles, such as, the

full configuration of the IT systems and new HR programs.

MERGING TOGETHER NATURALLY

“But, Inspecta is always there to help us financially,

technically and in our daily work, as well as in securing

new clients,” says Adamik.

“I am personally impressed by the tremendous support

we have received from the very beginning. Our problems

are always treated seriously and with full attention,”

says Gawro ski.

As part of Inspecta, the Polish team acquires

a workplace that is safe, stable and rewarding,

with access to advanced technology and training.

“Having the chance to improve our professional

qualifications is highly motivating,” adds Adamik.

“We still face a very dynamic environment, so we must

work together to achieve business sustainability. But

so far, the respect we have received feels very special,”

concludes Gawro ski.

The acquisition of EPSTil opens a new geographic area

for Inspecta and continues Inspecta’s strategic expansion

around the Baltic Sea region.

OUR INTERNAL SUSTAINABILITY PRINCIPLES

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Włodzimierz Adamik & Tomasz Gawroński

12

eal estate and infrastructure – or Built Environment as we call it

– constitutes a substantial part of every nation’s wealth. Keeping the

Built Environment in good condition is in everyone’s best interest:

ensuring the safety, quality and energy efficiency of buildings saves a

great deal of money and is a key driver to achieving sustainability.

Inspecta has long experience in many areas of Built Environment. Customers trust us for

certifying construction products and for inspecting real estate functions, such as, lifts, fire

detection, sprinkler, electrical and ventilation systems. In addition, we inspect, analyze

and monitor structures within real estate and infrastructure, both during construction and

maintenance phases of the asset lifecycle.

Built Environment services have much in common and many synergies with our Industrial

Assets offering. As a field organization we are close to our customers, providing effective

and fast help to keep the Built Environment in a good, safe condition. We can also

perform detailed inspections for critical structures, such as, bridges or demanding steel

constructions. We combine our many different areas

of expertise to ensure compliance, minimize risks and

create information value for our customers.

Built Environment forms a major growth area for

Inspecta in all our home market countries. We want

to be in a position where we can offer the full range

of inspection services for our customers. In the long

run, we want to certify the Built Environment for

sustainability and responsibility.

BUILT ENVIRONMENT

R

INTRO

SEE PAGES 14–15

Sustainable future for Built Environment

13

n a market that

has long been

fragmented, and has

seen inspections made

by small specialist

firms – one focusing

on elevators, another on sprinklers,

a third on electricity and so on – the

one-stop shop idea makes life easier

for property owners.

“Customers clearly see both

financial and functional advantages in

having just one contact to deal with.

They can focus on their business,” says

Peter Ramstedt, Business Manager,

I

One-stop shop for real estate owners The concept is simple. Government authorities require certain

inspections be made. The real estate owner then turns to an

expert who knows exactly how to handle them.

Real Estate at Inspecta in Sweden,

“and we can focus on the inspections”.

TOWARDS DIGITALIZATIONAs a big player, Inspecta pioneers the

trend toward consolidation. Sweden,

for example, is a pretty mature market

for mandatory building inspections.

“There aren’t so many new

regulations, but new buildings require

a little more inspection than older ones

because they have more installations.

We grow through market share and

through new real estate production in

the country.”

“What really separates us

from the competition is our special

in-house expertise: our inspections

cover all assets and everything is done

by our own staff,” Ramstedt says.

As with any business, or

life today, the Internet and new

technological applications have

changed the way business is done.

But there is more to come.

“Our solutions are fairly

advanced, our customers can already,

for example, check the inspection logs

online,” he says.

“In the future, digitalization

will give us and our customers

everywhere new opportunities for

communication, so that the owners

and their tenants get real-time info on

the building’s condition,” Ramstedt

concludes.

”What really separates us from the

competition is our special in-house

expertise: our inspections cover

all assets and everything is done by our own staff.”

14

urrently, Inspecta

Group has more than

100,000 elevator

inspections per year in

its portfolio. Inspecta is

now entering the elevator

inspection market in Norway, where

elevator inspections have until now been

conducted by two organizations.

“The Norwegian government

wanted more competition in the market

across the whole country. Most of the

elevator inspection occurs, of course, in

the Oslo region,” says Åge Gjellesvik,

Region Manager, Inspecta Norway.

TOWARDS FULL SERVICEInspecta started up elevator inspections

in the fall of 2014, but so far Inspecta has

only been allowed to provide periodical

elevator inspections. Gjellesvik says that

a full service package should be available

by mid-2015.

“Basically, we will have a new client

base for real estate services in addition

to existing ones. Today, we have some

customers we already work with on other

inspections, such as, lifting equipment.

We have all the technical capabilities, and

we will use our lift and crane expertise to

gain market share,” says Gjellesvik.

COOPERATION OVER THE BORDERSTo get up to speed as quickly as possible,

Inspecta Norway has been utilizing the

experience and expertise of Inspecta’s

elevator specialists in Sweden and

Finland. Cooperation between Inspecta

countries has been active in industrial

operations and now it is expanding into

the real estate operations, in accordance

with the new group strategy.

“We are working also on a new

inspection system that will be more

mobile and can be used on tablets as well.

That will make us more efficient with

work order management and customer

interaction. I hope we can also have it

online by mid-2015,” says Gjellesvik.

Åge Gjellesvik, Regional Manager.

“We are working on a new inspection system that will be more mobile and can be used on tablets as well.”

Going upC

15

”We have high hopes for the microbiology

laboratory. There we can move

towards DNA-based methods.”

16

Timo Lauri, building inspection manager for Inspecta in Finland, can’t get away

from engaging in small inspections everywhere, at any time. Just standing in line in

a grocery store, he notices if the person in front of him lives in a house with a mold

problem. An occupational hazard, perhaps, but one that aims to prevent bigger

hazards down the road as he applies his skills to his work.

I

Take it to THE LAB

nspecta’s operations

don’t rely solely

on the strength

of Lauri’s sense of

smell, of course,

but also on his

team of inspectors

and the laboratories that specialize

in microbes, as well as concrete and

asbestos. Lauri and his lab team joined

Inspecta in the spring of 2014, when

Inspecta acquired Kiratek, a building

services company, where Lauri was the

CEO.

A BETTER UNDERSTANDING“Inspecta Finland had a dozen

building inspectors in-house, and

the acquisition added another 40

to the team. Our focus is on all

kinds of buildings: houses, bridges,

lighthouses, harbors, water towers,

and others. There’s even a ski jumping

tower we are about to have a look at,”

Lauri says.

Most of the lab services are

delivered through other services

conducted by Inspecta’s field

organisation. “This is an inherent part

of our full service”, Lauri says.

The whole business is fairly new,

says Lauri. Laboratory studies have

been used on a larger scale only in the

last fifteen years. But with both end-

users and customers getting a better

understanding of the hazards of, for

example, mold, advances in the field

have been rapid.

“We still culture microbial

samples, but we see a trend towards

using DNA-based methods, such as,

PCR (polymerase chain reaction).

However, Finnish authorities don’t

yet accept DNA-based methods as

evidence, and we will always use

methods that are admissible in court,”

says Lauri.

“It’s a sensitive business,” he

adds.

It’s a challenging business as

well. The public sector clients – the

owners of schools, daycare centers,

and office buildings – find themselves

in a financial crunch.

“These inspections will help

them decide how and where to

allocate their limited resources,” says

Lauri.

While five years is not a long

time for a building itself, a lot can

and does happen in five years in a

laboratory.

“We don’t expect major changes

in the methods used for concrete and

asbestos, but we have high hopes for

the microbiology laboratory, and there

we can move towards DNA-based

methods,” he says.

EXPANSION IN SIGHTInternationalization may be another

way to develop the operations.

“We don’t currently have any

international clients, but we have

considered an expansion to the other

Nordic countries and the Baltics

by providing lab services to other

Inspecta units. That’s something we’ll

have to look into in more depth.

“Actually, we would really like

to take this step,” Lauri concludes.

17

An open mind is receptive to new business opportunities and fresh

ways of working, says Inspecta Denmark’s Finance Director Gitte Bruun.

Gitte Bruun

Based in Nørre Nebel, Bruun’s typical workday begins with

back-to-back meetings. Her role is to support budgeting and

pricing negotiations – a task that requires more than ‘dry’

number-crunching skills.

“You need people skills and the ability to listen. My job is to

arrange funding for interesting new projects. And when an

idea is exciting, we find the money,” she says.

Denmark is one of Inspecta’s fastest-growing markets. The

Danish team’s openness to new opportunities in the green

segment is a key driver of its recent expansion, affirms

Bruun.

“The Danish government has set a target of 30 percent

renewable energy by 2020, so the future definitely looks

green in Denmark. There are huge opportunities to be

tapped in wind and solar power. One of our biggest recent

projects involves hydrogen-powered cars.”

“THE BEST IDEA IS THE ONE WE HAVEN’T YET HAD”

A knowledgeable, forward-looking outlook is vital to

building strong customer relations, Bruun adds. “When a

customer calls us, they must be confident that the expert

on the other end is years ahead of the competition in green

expertise.”

Keeping minds and doors open drives a continual learning

process at Inspecta Denmark. “We are always willing to

share knowledge and support our colleagues in every

department.”

A good example is the Navision system, which provides

employees and customers with instant access to any data

they might need, from boiler status to certification details.

“It’s a great system, but we have to develop it constantly

based on feedback from customers and employees.

We really strive to listen and never be afraid of the new.

Otherwise, we can’t be open to the customer either.”

OUR INTERNAL SUSTAINABILITY PRINCIPLES

MOBILE EXPERT | FL0W OFFICER | OPEN MINDS | SOUND BUSINESS

18

CERTIFIED OPERATIONS

INTRO

oday, Certified Operations form a fairly limited part of Inspecta’s

operations. However, we want to grow fast in these services related

to non-physical customer assets, such as, management systems and

personnel certification. After all, the ultimate results in asset health

are affected by the operational practices and competences of our

customers.

With limited investments to check quality and reliability, health and safety, as well as

sustainability and responsibility, our customers can improve their competitiveness. Good

practices yield happy customers, happy personnel, and happy owners. Energy efficiency,

environmental safety and information security are interesting factors for all stakeholders.

While management system certification forms the traditional area of Certified Operations,

more insight can be gained with in-depth assessments of specific themes, such as, safety

practices in field work or the capability of contracted suppliers. Personnel certification and

high quality training are important in tasks where individuals perform critical safety and

quality duties.

Certified Operations offer many new opportunities for

Inspecta. We want to be proactive in areas where we

can support our customers in putting their operations

on a solid development track. This can be done by

taking a look at the operations and competences, and

by creating information that our customers can use

in their decision-making. The end result is a more

sustainable society.

T

SEE PAGES 20 –22

Solid improvements by Certified Operations

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combination of experience and expertise is

essential to ensure products and services meet

the right standards, from the quarry to the

apartment block.

“In the building industry, quality and

safety are essentially the same thing,” says Gita Šakale, a product certification lead expert for Inspecta Latvia

whose focus is on construction products.

“We have to check the quality of real products –

structural elements and materials – to make sure they fulfill

the standards and requirements; otherwise, there can be

serious problems for the end-user.”

For Šakale, certification ranges from aggregates and

cement, ready-mixed concrete and structural precast concrete

products to construction timber.

That demands site visits to factories

or quarries to inspect production

facilities and products, check technical

documentation, and verify that

manufacturers test their products and

make the necessary corrections.

Certification activities in the Baltic

countries and the Eurasian Customs Union

A

Gita Šakale, product certification lead expert. “In the building industry, quality and safety are essentially the same thing.”

Inspecta experts also participate in laboratory

testing in some cases. The product certification portfolio

extends to elevators, pressure equipment assemblies and

even fuel. The prerequisites are in-depth understanding

and familiarity with the regulations and products. Šakale,

whose qualifications include a doctorate in engineering,

says the most important requirement from the client’s

perspective is trust.

“The clients are looking for an inspection partner

with experience, a professional approach, and detailed

knowledge of the product,” she says.

EXTENDING SERVICESCommunication is also crucial. Inspecta staff regularly

use their language skills, such as Russian, with clients

and on site visits. In addition to product assessments,

Inspecta certifies management systems, including

quality, environmental, occupational health and safety

management systems. Services also extend to personnel

certification, such as, welders and solderers.

“The scope really is quite huge,” Šakale says. “And it

will keep growing.”

For all goods that require certification, there are

issues to consider, such as, the environmental impact.

And researchers are always finding new ways to improve

products.

“Standards and regulations are changing all the

time and we must constantly check and keep up to date,

too,” Šakale says. “We have to keep our finger on the

pulse.”

Experience and expertise ensure quality and high safety standards

20

Tuulikki Lammi, Lead auditor.“The rewards of improving energy management systems are clear.”

M uch of our

everyday work

assumes a reliable

power supply

and electricity that will run high-tech

equipment faultlessly. Just recharging

a mobile phone requires the correct

electrical standard. Testing by Inspecta

energy quality engineers can help to

minimize problems.

“Modern technology is quite sen-

sitive to different aspects of energy

quality,” says Peeter Konjuhhov, an

engineer with Inspecta Estonia, who

conducts electrical energy quality mea-

surements.

“Exceeding the approved limits

can cause disturbances or failures in

the process, or cause unsafe situations,”

he adds.

That could mean major trouble

for a factory equipped with vulnerable

systems.

”By having the information

about their energy characteristics,

clients can take any necessary measures

to safeguard their equipment properly

and keep their operations on track,”

Konjuhhov says.

The engineers’ work ranges from

testing generation equipment used in

the power station itself to checking the

grid and on to the end-user.

In addition to measurements in

the field, Inspecta performs laboratory

tests on equipment to assess how it

reacts to power fluctuations.

Inspecta has delivered results for

clients throughout the Baltics and in

Russia and Belarus, drawing on the

quality and expertise of its staff, their

long practical experience, and their

drive to achieve the best results.

MANAGING ENERGY SYSTEMSExpert staff, extensive experience and

the desire to achieve the best are the

qualities that make Inspecta a strong

player in energy audits – assessing

the overall energy performance

of organizations as a whole, from

production and infrastructure to

products.

Lead auditor Tuulikki Lammiof Inspecta Finland is involved in

certification of energy management

systems.

“The rewards of improving

energy management systems are clear.

They save energy, they save costs,

and in helping the client to achieve

improved energy performance, they

have benefits for sustainability, too,”

says Lammi.

These improvements also show

results in environmental management

systems. A system-wide approach

helps companies make continuous

improvements in energy management,

down to individual processes in a

factory or a specific building It also

puts the issue on the business agenda

and helps organizations to change.

For Lammi, one of the best parts

of the job is seeing the improvements

for clients – some immediate and some

over the longer term.

“With some clients we have

had relationships for many years,

and we can really see and track the

improvements in their performance

over the years.”

Peeter Konjuhhov, Engineer.

“Modern technology is quite sensitive to different aspects of energy quality.”Keeping electricity clean

and costs down

Energy: quality, efficiency and management

21

n the Baltics, Inspecta’s certification

teams cover a variety of products and

processes, with particularly extensive

coverage in the building industry.

“Certification covers all

construction products, with the

exception of geosynthetics and road surfacing materials,

such as, asphalt or bitumen,” says Vladimiras Ravnialičevas, team leader for product and process

certification in Lithuania.

Inspecta’s certification experts are tasked to check

that construction products meet up to 165 harmonized

standards, by making sure the manufacturer gives

accurate details of their properties and ensuring that the

manufacturing technology and control systems guarantee

production quality. Manufacturers need to follow

regulations and meet their commitment to quality.

TWO-WAY COMMUNICATIONCommunication is a crucial part of the relationship,

according to Ravnialičevas.

“It is important that the certification expert is

able to explain to the manufacturer how meeting the

regulations can improve their position,” he says, adding

that this is one of the reasons Inspecta emphasizes the

need for its professionals to have very strong social and

communication skills.

“The client needs thorough, clear and consistent

explanations.”

I

Ravnialičevas says this comprehensive approach

is the most rewarding part of the job – explaining,

making assessments and suggesting error corrections

and proposals for preventive action.

Of course, providing the right services demands

the right skills and qualifications, and the ability to

work efficiently.

A major attraction for the client is Inspecta’s offer-

ing of a wide range of services.

“That means the customer can get all compliance

assessments, certifications and inspections from one

source, making the process more efficient, more reliable

and more cost-effective”.

Product certification

Ensuring products measure up to promises made

Vladimiras Ravnialičevas, team leader.“The client needs thorough, clear and consistent explanations.”

22

Country Manager Mantas Andriuškevi ius shares the philosophy that

has made Inspecta one of Lithuania’s most successful businesses.

Mantas Andriuškevičius

Last December, Mantas Andriuškevi ius took pride in

accepting an award from the Confederation of Industrialists

recognizing Inspecta UAB as one of Lithuania’s top

companies of 2014.

His pride is fully justified. As the company’s co-founder, in

only four years he has literally built it from the ground up.

Today, Inspecta UAB is solid, racking up an annual net sales

growth of 88 percent.

When asked how he pulled off this feat, Andriuškevi ius

fires back a confident reply, “It’s easy, because I like what I

do.”

Clearly, this engineer has a strong sense of what ‘sound

business’ truly means. A rock solid financial base is critical,

he agrees. Uncompromising quality, too, is vital for building

a good name. And no business these days can survive

without a strong commitment to sustainability.

“But the foundation of a successful TIC company is having

“IT’S ALL ABOUT PEOPLE”

the best team of experts to satisfy our customers’ needs.

The manager must strive to bring together the right

professionals, who need to understand the importance of

their role.”

Leading a team of 57, Andriuškevi ius is personally

responsible for everything from process management to

budget planning. “Because I’m responsible for our growth,

I’m constantly analyzing everything, always looking for

fresh angles.”

This applies especially to customer understanding –

what he cites as the second key cornerstone for a sound

business.

“We should constantly think about customers’ needs, not

only in terms of the services we already provide, but also

new requirements, because this is how new services are

born. Every day when I open my eyes and look around me,

I see endless opportunities for generating new business.”

OUR INTERNAL SUSTAINABILITY PRINCIPLES

MOBILE EXPERT | FL0W OFFICER | OPEN MINDS | SOUND BUSINESS

23

Modern service built on a strong foundation of the best people, long experience and clients’ trust make us robust in Estonia”.

Though not the biggest player in the Norwegian TIC market, Inspecta has a great diversity of services with the best experts you can find. We bring Trust and Quality to the Norwegian industry every day.”

COUNTRY MANAGERS

Tõnu Roosaar

Country Manager, Estonia

Lasse Øvreås

Country Manager, Norway

Mantas Andriuškevi ius

Country Manager, Lithuania

Tomasz Gawro ski

Country Manager, Poland

The company’s strength depends directly on how strong the team is. In Lithuania we have a professional and innovative team that enables our successful growth in the market.”

“We are one of the biggest industrial NDT/DT laboratories in Poland also active in NDT inspectors and welders’ training. Additionally, we have a very strong Machinery Diagnostics Department. Inspecta’s newest technology gives us the possibility for further expansion.”

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Inspecta’s strength is our employees: their thirst for new knowledge, their willingness to implement it in practice, their ability to find the best solution. These are the expert characteristics our clients are seeking for.”

Inspecta Denmark is a flexible and adaptable organization. We have employees who have more than 20 years’ experience. We work as well onshore and offshore. InspectaDenmark is known for Trust and Quality.

COUNTRY MANAGERS

Jens Bruun

Country Manager, Denmark

Jelena Pekale

Country Manager, Latvia

Jacob Lundberg

Country Manager, Sweden

Topi Saarenhovi

Country Manager, Finland

“Customer trust and the strong commitment of our people to deliver outstanding services are the biggest strengths of Inspecta in Sweden.”

Inspecta Finland’s strength lies in our highly competent

people – an asset also valued greatly by our

customers. Our people enable us to offer

superior know-how and services to

our customers.”

Finland

Sweden Estonia

Poland

Denmark Lithuania

Latvia

Norway

25

Taking into account changes in local currencies, our local revenues actually grew slightly in 2014. However, at the group level, we could not live up to our annual growth targets. Our core markets have remained

challenging during the past four years, with declining industrial production. This has forced us to be somewhat cautious. For future, our target is to leverage better performance by turning back to the growth track and keeping the overheads low.”

Sustainability in operation

IN NUMBERS

Sustainability – or responsibility – forms the heart of our business. In this part of this Trust & Quality

Book 2015, you can find the main principles of our sustainability policy that will be implemented

stepwise during years 2015–2017. During this journey, we will set up the key performance indicators

that measure our development. In what follows, you can find some first indicators as well.

SOUND BUSINESSFinancial performance creates the basis for

running a sound business. In the long run,

it always correlates well with the quality

of customer service and experience. In

our Testing, Inspection and Certification

(TIC) branch, integrity (neutrality and

independence) is an inherent part of service

quality. It is a corner stone of our brand and

reputation too. We can be relied upon to make

the best, unbiased asset health diagnosis.

We are good in measuring our

financial performance, yet we need to

improve measuring also customer feedback.

During year 2014, an independent survey

was conducted based on the Net Promoter

Score (NPS) methodology. This survey was

focused on Swedish and Finnish markets.

Our customers gave credit for our competence

and quality, and pushed us to get better in

reporting our work results.

Financial performance of Inspecta Group

MEUR 2011 2012 2013 20141

Group revenues 163.8 171.4 176.0 177.6

Gross profit 54.3 54.8 53.1 54.1

% margin 33.2% 32.0% 30.2% 30.5%

EBITDA 20.9 21.5 20.1 20.0

% margin 12.8% 12.5% 11.4% 11.3%

EBITA 17.1 17.5 16.0 15.2

% margin 10.4% 10.2% 9.1% 8.6%

1 2 Smart travelling is

necessary for us to be

able to spend most of our time

on asset health work. This is

more challenging for example

in rural areas, so there is no

way of bencmarking directly

different operations. However, our

experience shows that the ratio of

travel costs and revenues – and

especially its trend – may be used to

tell whether we are getting better in

our travel practices and proximity

to our customers. Even small

positive trends, in this respect, form

important signs of improvement.

1

Stefan Petersson,

CFO Inspecta Group

Travel costs per group revenues

2011 2012 2013 2014

200

150

100

50

0

20

15

10

5

0

Group revenues Travel costs % of revenues

9.4% 9.4% 9.4% 9.1%

163.8

15.4 16.1 16.6 16.0

171.4 176.0 175.4

1 = Pro forma

26

MOBILE EXPERTSOne of the key sustainability aspects is environment. Our own environmental

influence is dominated by travelling and offices, or in other words, use of energy.

We can work more sustainably by utilising new ICT technology for mobile work

and communication. Digitalisation benefits both environment and economy.

There are several ways of measuring our performance here. We may use our

travel distances and energy use as the basic information of our environmental

impact, and we may even use direct financial data to see how much of our turn-

over – or in other words our service value – is spent on travelling. Finally, we may

find action indicators such as number of electronic meetings in order to see our

progress in working smarter.

IN NUMBERS

OPEN MINDSOur services contribute to the sustainability of our customers’ operations and the

society as a whole. By keeping our minds open together with our customers and

authorities, we can constantly expand our service offering and value. The end

result is a more sustainable society and a stronger economy.

Basic information about this includes the market size and our share of it.

During year 2014, we performed a detailed study of our market size and share, as

part of our strategy work. Our performance may be measured also by the number

of new services introduced by us in a given year, or by the inspection decision sta-

tistics giving a view on how often we need to require corrective actions in the field.

Inspecta is growing steadily, as can

be seen in the growing number of

personnel. During year 2014, focused

steps were taken by acquisitions in Poland

and Finland, as well as recruitments

in Denmark and Lithuania. Personnel

development was more steady in

Sweden, Norway, Estonia and Latvia.

Approximately 1365 out of 1579 working

years (86%) were made by experts

in billable positions, and 214 (14%) in

supporting non-billable positions. On this

basis, we are well positioned to move

ourselves onto a stronger growth track.

Personnel in Inspecta countries (Full Time Equivalents, FTE) Finland 501

Sweden 626

Norway 115

Denmark 54

Latvia 73

Estonia 67

Lithuania 51

Poland 84

Group HQ 8

2011

1,383 1,406 1,429 1,579

2012 2013 2014

1,600

1,200

800

400

0

Group

Inspection decision statistics on selected assets by Inspecta Finland

Every inspection results in a report, and if the inspection

is based on a legally set or standardized safety level, an

inspection decision is made. In general, we want to see

these decisions as “asset health scores”, informing our

customers about the status of their assets. Traffic lights

may be used to convey that the asset is unsafe (red),

requires actions (yellow), or is in an acceptable condition

(green). Furthermore, even higher scoring levels could

be given to indicate a good lifecycle condition and even a

high asset user value.

ElevatorsFire detection

systems Electrical systems

FLOW OFFICERSCompetence and motivation of person-

nel are the main drivers for our quality and

financial performance. This requires train-

ing and development, health and safety,

and equality among all of us. Our tar-

get is to reach “a positive flow mode”, to be

spurred by all colleagues and leaders. We

want to be a safe and rewarding working

place.

Our profession, age and gender struc-

ture can be used as the basic information,

whereas our performance may be mea-

sured by employee feedback, training days,

as well as leaver, sick leave and accident

rates. In our personnel survey conducted

in year 2014, we got positive feedback on

our strong commitment and capability to

conduct high-quality customer work. Our

challenges lie in supporting both the daily

work and the development. For the same

reason, our new strategy pays a great atten-

tion on growth enablers.

3

4

2

3

4

Year

2011 1 55 44 1 89 10 1 90 8

2012 1 55 44 1 89 10 1 90 8

2013 1 54 45 1 88 11 1 92 6

2014 1 57 42 1 87 12 1 90 9

Inspection decision statistics (%) on selected real estate assets

in Finland (red = not accepted, yellow = accepted with corrective

actions, green = accepted)

We collect occupational health

and safety statistics annually

from our country organisations.

During years 2012–2014, sick

leaves were steadily below 3% of

total working hours at Inspecta

Group. Occupational accidents

were at 6–12 per million working

hours, with a declining trend

during the past years. Our target

is to head for improvements in

nearby accident reporting, to be

enabled also by our new digital

working environment.

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Inspecta Group OyP.O. Box 1000

FI-00581 Helsinki, Finland

phone +358 10 521 600customerservice@inspecta.com

www.inspecta.com

Inspecta is the testing, inspection and certification market leader in Northern Europe.

Inspecta’s office network covers Finland, Sweden, Norway, Denmark, Estonia, Latvia, Lithuania and Poland.

Annual turnover is about 180 million euros with more than 1,500 experts.