2010 in Review

In 2010, leading international companies felt pressure from worldwide market turmoil. Despite tough international economic conditions, Telvent further cemented its position as a leading player in its chosen fields, and opened up new business opportunities around the world.

The year saw a number of unexpected events that have altered the dynamics of the energy sector. Telvent has grasped opportunities created in this new scenario to expand its products and services with the aim of helping customers achieve performance excellence. The Oil and Gas division’s revenue exceeded expectations. Moreover, in the electric industry, Telvent considerably increased its market share and boosted brand recognition in Smart Grid-related projects.

In the field of transportation, the company’s strong progress in the United States and the increase of business expectations in the Middle East and North Africa regions was highlighted. Even in the face of the present financial turbulence, Telvent underscored its strength in the Asia-Pacific region, and put in an excellent performance in Latin America, while retaining its lead in Spain. Deploying a strategy that combines ongoing evolution with project globalization, the Traffic and Transportation segment secured further  contracts on the back of existing projects and won new tenders, mainly in urban mobility, passenger information services and toll management.

The Environment division rose to the year’s challenges by firmly establishing its water business in North America, and rolling out its new Telvent DTN weather information and forecasting solution. Throughout the year, Telvent achieved growth in the strategic North American market thanks to its intelligent water management and weather forecasting solutions — the United States now accounts for 40 % of the segment’s entire business. The company retained its strong foothold in Europe and won new ground by entering markets such as Libya, Jordan and Qatar.

The Agricultural sector’s inherent volatility, which at first sight might seem a hazard, has in fact helped it expand its business yet again in 2010. Seed and fertilizer price fluctuations further consolidated Telvent DTN’s position as the leading supplier of critical business information to support the production, marketing and distribution of grain and livestock, predominantly in the hugely influential North American market. Subscription services maintained their traditionally high retention rate — nearly 90 % — and new producers and agricultural businesses joined the customer base.

In 2010, the Global Services division laid foundations for growth in the coming years. The consolidation of Telvent Housing, Telvent Interactive and Matchmind was completed. The division strengthened its in-house capabilities in the consultancy and data center areas, and continued to build on its relationships with hardware manufacturers and software developers. Global Services achieved the feat of keeping up a local company’s standard of customized care while offering the reliability and robustness of a  multinational corporation, rolling out resources in Latin America and the United States to boost its business by 250 %.

 

Major Milestones of 2010

The Energy business area continued to invest in Advanced Distribution Management System (ADMS) technology and in the marketing of its proprietary Smart Grid solutions. Fending off powerful industry rivals, Telvent won large Smart Grid contracts in Canada, the United States, China and Europe, and in the process attracted a number of major awards. Telvent’s achievements in this area were recognized by a prestigious Innovación Digital prize awarded by the Barcelona Digital Technology Center. The company was selected for its DMS technology, a suite of robust and versatile Smart Grid tools focused on energy efficiency and sustainability. The suite was also lauded as Product of the Year 2010 by the Technology Marketing Corporation (TMC). Telvent was selected as a contestant in the “Sustainable City” in recognition of the first-ever green residential buildings built in Madrid, Spain. The company deployed the technology to make government-protected apartment rentals for young people in Spain’s capital city more energy-efficient.

One of the Traffic and Transportation division’s highlights included the agreement signed with IBM in North America to create Intelligent Transport Solutions (ITS) for mobility management over small transport networks in small and mid-sized cities, university campuses, government complexes and theme parks. This year Telvent SmartMobility™ Tollling — Telvent´s turnkey solution for electronic toll collections — took the market lead in advanced pay-per-use management systems for transport infrastructure. As a result, Telvent secured top-level contracts in the United States, Spain and Latin America to install its vehicle control systems, and has successfully closed initiatives such
as advanced systems of toll free-flow of New Hampshire Hamppon Plaza and Pocahontas (United States), allowing process nearly five times more vehicles than a conventional toll road.

In 2010, the Environment division took steps offer its wide range of Telvent DTN information services internationally. The company made further progress by developing synergies and integrating with Telvent DTN. Acquired in 2008, this North American firm is largest private sector supplier of information services for the aviation, energy and transportation sectors in the United States. A special highlight is Telvent DTN’s patented rainfall forecasts, which for the fourth consecutive year outperfomed other companies in the industry in an independent, third-party study.

The Agriculture division has continued to grow and entrench its position as the undisputed market leader in the United States. It supplies critical data in real time and SAAS (Software as a Service) solutions to all players throughout the supply chain, from producers to brokers and intermediaries. In the field of publishing, Telvent DTN achieved fresh successes by securing 20 editorial awards given out by the North American Agricultural Journalists (NAAJ). Telvent DTN was also a big winner at the American Agricultural Editors’ Association (AAEA) award ceremony, where it carried off a total of 27 accolades in the editorial, design and photography departments, and a special prize for marketing communications. 2010 was the fourth year running in which Telvent DTN won the most AAEA awards. The company also received two awards from the American Society of Business Publication Editors (ASBPE) and the Star Prize for Broadcasting Award from the International Federation of Agricultural Journalists (IFAJ).

In the Global Services arena, the integration of three companies — Telvent Housing, Telvent Interactive and Matchmind — into a single corporation, Telvent Global Services (TGS), was finalized. The merger involves all corporate levels and departments (legal, head offices, organizational charts, product range, information systems and human resources), so all parties have fully committed to a common goal: The creation of a single company that combines the strategic vision of the consultancy profession with the accuracy and reliability of engineering, thus enriching Telvent’s broad array of services.

In healthcare, the Global Services division reaped the rewards of its determined bid to create innovative technology when it was awarded the Andalusia Information Society Prize for the best ICT project to improve the quality of life of the general public. The regional government of Andalusia awarded Global Services the prize specifically in response to the installation and configuration of the region’s health network PACS infrastructure. Health professionals can now access a patient’s medical checkup history across all hospital locations and dates. This saves public funds and avoids inconvenience to patients.

Success stories like this are the outcome of Telvent’s consistent year-to-year dedication of technology and human resources to the research and development of new solutions. Telvent seeks innovation in everything it does. From 2008 to 2010, an anomalous period strongly influenced by the economic downturn, more than €90 M were channeled into R&D initiatives. More than 2,500 software engineers and engineering Ph.D.s worked on a daily basis across an international network of technology centers, ranging from Canada, Colorado and Minnesota to Spain and Serbia. The company’s geographical diversification is the key strength underpinning the meteoric rise in its technological capabilities. By encouraging a global exchange of creativity, the latest developments achieved at an Asian laboratory can be put within the reach of Americans, and vice versa.