ANNUAL REPORT 2018 ANNUAL REPORT 2018 CONTENTS
CONTENTS
2018: THE YEAR 38 Key principles of our work IN REVIEW with customers and partners
04 2018: the year in review SUCCESS STORIES
06 Engagement with industry and analysts 42 MegaFon
08 Extensive coverage in international media 46 Chinguitel
49 Moldcell
STATEMENTS FROM COMPANY 50 Kyrgyztelecom MANAGEMENT HUMAN CAPITAL 10 A Message from the Chairman of the Board of Directors 56 Company management 58 Nexign work force 12 A Message from the CEO of ICS Holding 58 Awards 14 A Message from Nexign’s CEO CORPORATE SOCIAL RESPONSIBILITY 16 STRATEGIC PRIORITIES FOR 2019 62 Corporate social responsibility
63 New Nexign headquarters NEXIGN COMPANY OVERVIEW 64 Talent support
20 2018 Board of Directors 65 Educational projects
20 The company today 66 Community service campaigns
22 Our mission 66 Environmental responsibility
23 Important figures for 2018 68 Anti-corruption policy 24 Key benefits of Nexign products 70 RISK MANAGEMENT 26 Research and development centre
28 Products and services overview 72 AUDIT REPORT
2 3 ANNUAL REPORT 2018 2018: THE YEAR IN REVIEW
2018: THE YEAR IN REVIEW
Overall, 2018 was a landmark year for Nexign, a year of important 2018 saw rapid growth and development for Nexign as we continued along achievements that laid the foundation for successful future growth: our present course. The new 2017–2020 strategy, the approved three-year financial plan, and our investments all continued to produce good results: Nexign’s key financial indicators were the best they have been in recent years.
Company revenue Operating margin
OPENING AN OFFICE EMBARKING ON A CONCLUDING A CONTRACT 120 250 1 2 3 210 IN DUBAI, UAE PARTNERSHIP WITH WITH UZBEKTELECOM Rebranding 70 Rebranding Investments 100 Investments WIPRO AND INFOSYS 200 in new markets in new markets 106 80 150 121 57 60 100 123 103 40 45
50 20
0 0 million 2015 2016 2017 2018 million 2015 2016 2017 2018 USD USD
MAKING GARTNER’S MAGIC JOINING INTELLECTUAL LAUNCHING OUR 4 QUADRANT FOR THE SECOND 5 COMPUTER SYSTEMS 6 INNOVATIVE TELECHAIN CONSECUTIVE YEAR HOLDING (ICS HOLDING) BROKER SOLUTION Net profit Net cash flow
76 80 80 68 Rebranding Rebranding 70 70 58 Investments Investments 60 in new markets 60 in new markets 51 48 50 50
40 40
30 33 30 29 29 20 20
10 10
0 0 million 2015 2016 2017 2018 million 2015 2016 2017 2018 EXPANDING REGIONAL COMPLETING LAUNCHING A NEW USD USD 7 PRESENCE 8 REBRANDING 9 PRODUCT PORTFOLIO All figures in the annual report are taken from management accounts prepared in accordance with the Russian Accounting Standards. The effect of management accounting adjustments on net profit is no more than 2%.
4 5 ANNUAL REPORT 2018 2018: THE YEAR IN REVIEW
Today, Nexign is solidly established on the Russian ENGAGEMENT and global markets. In 2018, the company earned high marks from international analytics agencies and was WITH INDUSTRY AND ANALYSTS mentioned in several major professional publications
Analysys Mason published a report Nexign’s product portfolio was rated ‘very Analysys Mason named Nexign a leading provider IDC published a Market Note about the about the company: ‘Nexign: Digital strong’ in comparison to the offerings of of IoT solutions in their report, ‘IoT Monetisation company: ‘Nexign Transforming Itself Transformation’. other leading BSS providers. Platforms: An Increasing Number of Use Cases is to Help Telcos Transform’. Encouraging CSP Investment’. (October 2018). Nexign was also included in their report (GlobalData: Nexign BSS, December 2018). Monetisation platforms: worldwide (Analysys Mason report: IoT Monetisation Platforms: market shares 2017. An Increasing Number of Use Cases is Encouraging
(Analysys Mason report: ‘Monetisation platforms: CSP Investment, 2018). worldwide market shares’, 2018).
May June September October 2018 2018
August November
Analysts at Frost & Analysts praised our blockchain solution Nexign was featured in Gartner’s Magic Quadrant Sullivan featured Nexign partnership as a major step forward, remarking that for Integrated Revenue and Customer Management in their 2018 report on Nexign is ‘changing the rules of the game’ for the second year in a row. monetisation and financial and ‘possesses a unique market advantage’. assurance. (Gartner: ‘Magic Quadrant for Integrated Revenue and Customer (GlobalData: ‘Nexign and Bubbletone Ready to Turbocharge Management for CSPs’, by Norbert Scholz, Jouni Forsman, (Frost & Sullivan: Global CSP the BSS Market with Embedded Blockchain Applications’, Amresh Nandan and Ramesh Marimuthu, 11 February 2019). Monetization and Financial August 2018). Assurance 2018 Edition, 2018).
6 7 ANNUAL REPORT 2018 2018: THE YEAR IN REVIEW
EXTENSIVE COVERAGE IN INTERNATIONAL MEDIA
Telecom Review, Middle East Intelligent CIO, Middle East Intelligent Tech Channels, Middle East
Intelligent CIO, Middle East
TelecomPaper, Europe
IT Web, Africa Enterprise Channels MEA, Middle East CXO Insight, Middle East
8 9 ANNUAL REPORT 2018 STATEMENTS FROM COMPANY MANAGEMENT
The investments we made in 2017 allowed us to achieve the best results of the past five years
A MESSAGE from the Chairman of the Board of Directors
In 2018, Nexign enjoyed real success in the company to confidently compete with implementing its strategic plans for entering major international providers whose positions the global market and developing a new are traditionally strong in our priority regions. product line. The investments we made in 2017 At the same time, Nexign’s strategy and allowed us to achieve the best results of the competitiveness are built not only on the past five years. Armed with our new brand, expanded functional possibilities of our Nexign entered the international market as a products, but also on non-functional qualities: strong player focused on results and ready to transparency about total cost of ownership, take the next step together with our customers. flexibility in conducting business, and a customised approach. Telecom operators’ expectations of the IT solutions providers they work with are ever- I am confident that the company will continue increasing. Customers are looking for a reliable to grow unabated as part of ICS Holding, both partner, not just a vendor. It is important to with respect to revenue and with respect them that we make decisions together, create to the expansion of our influence on the joint project teams, and work to achieve a international market. Nexign will continue to shared outcome. That is precisely how Nexign refine its product solutions in line with the latest works with our key customers, and we are ready industry trends, predicting and staying ahead to demonstrate our partner-centric approach on of those factors that directly affect customers’ the international stage. businesses and ensuring stable growth and development in its target regions. The technological and functional advantages of Nexign’s portfolio, combined with our unique 27-year track record of transforming Tier 1 telecom operators’ businesses, allow Mikhail Dubin
10 11 ANNUAL REPORT 2018 STATEMENT FROM COMPANY MANAGEMENT
Employees’ intellect, work ethic, and knowledge are crucial to any company’s success. Holding needs the best specialists and the most cutting-edge products
A MESSAGE from the CEO of ICS Holding
2018 was a turning point for ICS Holding. We Nexign is one of our largest assets. The continued working to create a multidisciplinary company’s products will become part of a structure including some leading IT companies, complete line of IT solutions brought into being and made some significant acquisitions on the by ICS Holding. I am aware that the company Russian ICT market. possesses unique technologies incorporated into its products, a highly professional in-house Today, Holding brings together 25 companies, team that includes internationally recognised each of which is unique, possessing its own experts, a large customer base, and many years’ technical developments, products, and experience on the international market. approach to business solutions. At ICS Holding, Russian market leaders are joined by young, Nexign is an important element of our new progressive companies. Our strategic goal is telecommunications system. I am confident to unite all our assets in a single, functional, that Nexign will continue its successful growth effective ecosystem primed to achieve clear in 2019, and that the company’s synergy with leadership in the field of telecommunications all of Holding’s companies will allow it to more solutions. quickly make its goals a reality as it pursues its course of strategic development. Employees’ intellect, work ethic, and knowledge are crucial to any company’s success. Holding needs the best specialists and the most cutting- edge products. And that is precisely what I saw in Nexign. Anton Cherepennikov
12 13 ANNUAL REPORT 2018 STATEMENTS FROM COMPANY MANAGEMENT
Joining the ICS Holding ecosystem will give us access to new technologies, while joining forces with other companies in the group will allow us to make our products even more competitive
A MESSAGE from Nexign’s CEO
This past year was a pivotal one in the history international systems integrators, Wipro and of our company. In early 2018, at Mobile Infosys, and are continuing our intensive work World Congress in Barcelona, we revealed to develop regional partnerships. Together with our rebranding and announced a product line our exclusive partner Bubbletone, we presented which we finished developing in late 2018, the global telecom community with our all in line with the strategy we developed and innovative TeleChain Broker solution, the first approved in 2017. The new brand and products solution in the industry’s history to be based on were received positively by current and blockchain technology. potential customers, partners, and analysts. In December 2018, Nexign joined ICS Holding, We began to actively develop our business in a dynamic, evolving, multidisciplinary IT group. the Middle East, Africa, and Southeast Asia Joining the ICS Holding ecosystem will give and to consolidate our local position in these us access to new technologies, while joining regions, opening a company office in Dubai forces with other companies in the group (UAE) and hiring strong professionals with many will allow us to make our products even more years of experience in the telecom industry for competitive on the market and appealing to our regional teams. Our company was invited customers. to tender by nationwide mobile operators and In 2019, we will continue to actively develop gained new customers: our biggest deal in the and promote our new product line. We are last year was the contract we signed confident that Nexign’s international expertise, with Uzbektelecom. together with our deep knowledge of We are seeing favourable conditions in our technology, trends, and the finer points of target regions and great potential for those the telecom business, will continue to promote of our products with development roadmaps the growth of our customers, the largest featuring points that have state backing and are communications services providers in Russia of particular interest to the market (such as IoT, and the Commonwealth of Independent 5G, and blockchain). Our experience executing States. We believe that Nexign’s products and large-scale digital transformation projects has solutions have the competitive advantages been widely acknowledged, and our project it will take to transform telecom operators’ with the company MegaFon was nominated for businesses around the world and open up new the prestigious TM Forum Excellence Awards. opportunities in the age of the digital economy.
We remain committed to the growth and evolution of our partner ecosystem: over the last year, we signed agreements with two major Igor Gorkov
14 15 ANNUAL REPORT 2018 STRATEGIC PRIORITIES FOR 2019
STRATEGIC PRIORITIES FOR 2019
The transformation of the telecom service We have established the following priorities market and consumer behaviour requires for 2019: industry players to constantly adapt. Telecommunications operators strive to 1. Signing our first contracts maintain and increase their competitiveness, with customers in the Middle East, which is why their business models are Africa, and Southeast Asia; in constant flux. 2. Consolidating the company’s success With these trends in mind, Nexign is in all our key markets; continuing its expansion on the global IT solutions market, both by extending 3. Completing the billing transformation its geographical reach and by reinforcing programme at MegaFon; its customer base. 4. Researching the needs of local communications service providers in depth as we develop new products;
5. Strengthening current partnerships and further cultivating our network of partners.
16 17 Nexign is a leading provider of business support systems, Internet of Things platforms, and network monetisation technologies
Nexign company overview ANNUAL REPORT 2018 NEXIGN COMPANY OVERVIEW
Nexign has an extensive network of branches and offices across Russia, the Commonwealth of AT THE END OF 2018, THE PETER-SERVICE JSC BOARD Independent States, Southeast Asia, OF DIRECTORS CONSISTED OF: the Middle East, and Africa • Mikhail Dubin, Managing Director for IT Project Management and Development at USM Management LLC and Chairman of the Peter-Service Board of Directors
• Alexander Esikov, Advisor to the CEO of USM Management and member of the Peter-Service Board of Directors
• Pavel Kaplun, Director for Investment, Mergers,
and Acquisitions at CRPT Operator LLC and member NEXIGN IS THE BRAND BEHIND of the Peter-Service Board of Directors PETER-SERVICE JSC AND ITS SUBSIDIARIES: • Anna Serebryanikova, Deputy CEO for the Digital Economy In 2018, Peter-Service also had two limited and Government Relations at USM Management and 1. Ventura Dijital Çözümler Anonim Şirketi liability corporations as subsidiaries: member of the Peter-Service Board of Directors Incorporated in: Republic of Turkey Peter-Service Spetstekhnologii (PS ST LLC), Scope: developing technology and modern with a 49% share of its authorised capital, • Anton Cherepennikov, CEO of ICS Holding and member information-sharing processes in the field and the Center for Research in Perspective of information technologies and software Technologies, with a 50% share of its authorised of the Peter-Service Board of Directors Share of authorised capital belonging capital. However, the subsidiaries’ activities to Peter-Service: 100% were not relevant to the course of action set out in Peter-Service’s approved development 2. Peter-Service Estonia OÜ strategy. Incorporated in: Tallin, Republic of Estonia THE COMPANY TODAY Today, as communications service providers Scope: programming In December 2018, Peter-Service ended its Nexign is a leading provider of business become digital service providers, Nexign Share of authorised capital belonging involvement in the subsidiaries by selling its support systems, Internet of Things platforms, helps them to accelerate their internal to Peter-Service: 100% 49% share in PS ST LLC and its 50% share in the and network monetisation technologies. The transformations by creating a product line that Center for Research in Perspective Technologies company helps communications service takes into account businesses’ high-tech needs. 3. Peter-Service Ukraine to USM Technologies LLC. providers to transform their business in the Incorporated in: Kyiv, Ukraine Thanks to Nexign’s cutting-edge engineering digital economy. Scope: installing and implementing solutions and product and service flexibility, software by Peter-Service; providing operators can significantly diversify their Nexign was the first company in Russia technical support for this software revenue sources without compromising on to start developing service solutions for Share of authorised capital belonging service quality. communications service providers, including to Peter-Service: 100% billing systems, and can rightfully call itself Nexign has an extensive network of branches a pioneer in this field. and offices across Russia, the Commonwealth of Independent States, Southeast Asia, the Middle Since 1992, the company has been developing East, and Africa. Its headquarters are located in and implementing practical solutions aimed at Saint Petersburg, Russia. Over 1800 people reducing the total cost of ownership (TCO) for currently work for the company. customers.
20 21 ANNUAL REPORT 2018 NEXIGN COMPANY OVERVIEW
Nexign has been a leader in the BSS solutions market for 27 years, supporting more than 50 CSPs in 16 countries worldwide
IMPORTANT FIGURES FOR 2018 have been in the past five years. Net profits, 2018 was a landmark year for Nexign’s business operational margins, and net cash flow in 2018 in many ways, demonstrating that the company exceeded their 2017 levels by a factor of 2.5, is moving in the right direction. In line with its thanks in large part to the completion of key chosen strategy, the company is continuing to implementation stages in projects for two major develop technologies and partnerships aimed CSPs in Russia and the CIS. At the same time, it at transforming business models and creating is important to note that the increase in revenue new revenue sources for CSPs. In 2018, Nexign (an 80% increase on the previous period) is was invited to tender for major contracts in CIS significantly less than the rate of increase in countries and other target regions: the Middle net profits, which attests to an increase in the East, Africa, and Southeast Asia. Overall, last company’s efficiency. year’s key financial indicators were the best they
million US 2014 2015 2016 2017 2018 OUR MISSION OVER is to help telecommunications service providers Company revenue 78 103 121 123 210 grow their business in the era of the digital Operating margin 27 57 70 45 106 economy, developing and supplying 120 Net profit 32 51 58 33 76 best-in-class products, guaranteeing reliable Net cash flow 23 48 29 29 68 service, and building long-term partnerships. projects All figures in the annual report are taken from management accounts prepared in accordance with the Russian Accounting Nexign has been a leader in the BSS solutions INCLUDING DIGITAL Standards. The effect of management accounting adjustments on net profit is no more than 2%. market for 27 years. Over that time, we have TRANSFORMATION PROJECTS FOR completed more than 120 projects, including digital TIER 1 COMMUNICATIONS SERVICE It is worth emphasising that the decline in the figures for net profit and operational transformation projects for Tier 1 communications PROVIDERS margin in 2017 was influenced by: service providers. The company offers its customers • a decline in revenue, related to the lifecycle Nexign understands the important role of best-in-class TCO (25% lower than the market of the MegaFon billing transformation project, marketing strategy in corporate strategy average), as well as a more than 80% reduction which began in December 2014. The majority overall, and is giving special consideration to in time to market. of the revenue from the delivery of this its development. In 2018, the company spent software developed in previous years was three times more on marketing than in 2017. collected in 2016; The company is confident that these • an increase in costs and operating expenses investments will allow us to increase brand related to the expansion of the company’s recognition and achieve an increase in sales activities. This expansion followed the launch revenue in the long term. of our new strategy and the beginning of the implementation of new investment projects.
22 23 ANNUAL REPORT 2018 NEXIGN COMPANY OVERVIEW
KEY BENEFITS OF NEXIGN PRODUCTS
Nexign offers high-tech software solutions The following were some of the key benefits developed with contemporary global market for CSPs most often ascribed by analytics trends in mind. Today’s telecommunications companies to Nexign’s solutions in 2018: companies need IT products that allow for agile interactions with other market players, along 1. The optimisation of total cost of with closer control over BSS spending and ownership thanks to flexible and dynamic increased transparency and efficiency. Providers products and open cloud architecture aim to create ecosystems that allow third-party access so they can collaborate effectively with 2. The comprehensiveness of our product partners, while their customers want to be able portfolio, which allows providers to benefit to access products and services immediately from the use of existing investments in through any channel they wish. Through our use BSS solutions and network monetisation of open APIs, Nexign is laying the groundwork as well as to deliver new projects based on for the digital transformation of Tier 1 and Tier new technologies such as 5G, the Internet 2 CSPs, opening up a range of opportunities of Things, and blockchain for fast-paced business growth and increased 3. The ability to satisfy even the most revenue. Nexign’s transparent and agile demanding and tech-savvy subscribers methodology ensures best-in-class TCO and while implementing the most complex helps to speed up new programme launches commercial projects, thanks to our by optimising and digitalising workflows. 27 years of experience supporting Tier 1 and Tier 2 CSPs
24 25 ANNUAL REPORT 2018 NEXIGN COMPANY OVERVIEW
RESEARCH AND DEVELOPMENT CENTRE In a globalising economy, our company is committed to adapting the solutions we develop to the high standards of the international market
Nexign has been a leader in the high-tech Creation of microservice architecture, market for more than 27 years, an achievement with ZooKeeper and Docker responsible which was made possible only by constantly for orchestration: developing and refining our product portfolio. • ZooKeeper is used for storing app In a globalising economy, our company configurations and connection data; is committed to adapting the solutions • Docker containers simplify scaling and we develop to the high standards of the allow for independent app deployment. international market, allowing Nexign to successfully compete with leading global Dynamic workflow configuration telecom solutions providers. (with Camunda): • A simple mechanism for entering In 2018, the company’s R&D centre changes to process configurations prepared the first release of our new at the delivery stage; Nexign Digital BSS, which included the • A basic set of processes for work following key features: with customers, contracts, and jobs. Optimisation of web apps for cloud In 2018, Nexign made R&D one of its principal Simple integration of channel applications technology (for deployment to Amazon strategic priorities. We invested 65% more in product through API-based frontend construction: development and improvement than we did in 2017. Web Services): 65% • To increase solution agility, the same APIs The most important outcomes of our R&D work are • Each app is made up of independent are used for both internal interfacing the high agility of our product solutions and their MORE INVESTED IN PRODUCT components, expanded with the aid DEVELOPMENT AND REFINEMENT channels and external applications; competitiveness in the global market. We currently of containers; THAN IN 2017 • REST APIs with Swagger support ensure have 300 world-class experts working in R&D. • All components have APIs. ease of development.
26 27 ANNUAL REPORT 2018 NEXIGN COMPANY OVERVIEW
PRODUCTS AND SERVICES OVERVIEW
Nexign’s goal is to create high-quality product necessitate that CSPs diversify their revenue solutions that guarantee customers robust streams, using the opportunities opened up by growth in the digital economy. The company IoT, 5G, and blockchain technologies. At the aims to transform communications service same time, the need to reduce total cost of providers’ business models and provide them ownership (TCO) is obliging providers to expand with opportunities to expand their sources of their use of cloud technology and virtualisation revenue. and work towards effective coordination with other industry players. New functionality The telecommunications service market is in Nexign’s product portfolio introduced in characterised by growing subscriber demand 2018 will allow CSPs to build global digital for varied and more personalised offerings. partnerships and reap the benefits of an open The B2B2X (business-to-business-to-X) model ecosystem, including increased business agility, is increasingly coming to the fore. These factors accelerated integration, and TCO optimisation.
28 29 ANNUAL REPORT 2018 NEXIGN COMPANY OVERVIEW
Nexign Digital BSS facilitates digital transformation NEXIGN DIGITAL BSS for CSPs, allowing them to grasp new opportunities to grow their businesses and increase their revenues
An end-to-end platform delivering full-stack BSS functionality to drive communications service 3GPP standards defining the core network of CSPs providers’ digital transformation. Nexign Digital BSS is built on a solid foundation of converged were documented and published. The mass launch billing and a real-time network monetisation platform, enhanced by centralised product of 5G on a global scale is expected no earlier than $1.97 management. 2020. Nexign Digital BSS supports 5G technology.
CREATING PARTNER ECOSYSTEMS trillion KEY BENEFITS: • Rapid introduction of new functionality Communications service providers should have the BY 2022, GLOBAL INVESTMENT • Omni-channel customer experience; thanks to DevOps approach; ability to rapidly integrate new partners, offering IN DIGITAL TRANSFORMATION IS • Compliance with TM Forum and 3GPP them agile collaboration plans, including plans • Digital partner ecosystem enablement; PREDICTED TO REACH $1.97 TRILLION industry standards and 5G support; that allow partners to come forward with their own • Boosting revenue using a unified approach to (IDC) products for joint package offerings. traditional and non-telecom revenue streams • Cloud deployment support; with support for complex offerings and • Convergent architecture; Nexign Digital BSS offers everything companies settlement methods; • All core BSS functions via a single need to develop an extensive ecosystem and • Reduced time-to-market for new digital comprehensive product. monetise today’s B2B2X scenarios. We allow for products and services; omnichannel customer interaction with seamless 15% integration of traditional and digital interfaces by supporting self-service channels and offering the BY 2025, 5G IS EXPECTED TO ACCOUNT best possible customer service that takes digital FOR 15% OF ALL MOBILE CONNECTIONS realities into account. (GSMA)
In recent years, the telecommunications service market has been LOW TIME TO MARKET FOR NEW DIGITAL undergoing a process of digital transformation that has dramatically PRODUCTS Nexign Digital BSS’s architecture, altered CSPs’ business models. which is built around a centralised product Stagnating revenue from traditional communications services has catalogue that serves as a single point of prompted telecom providers to diversify their revenue streams and configuration for all products, helps to lower TTM include new digital products in their portfolios. Nexign Digital BSS’s from months to weeks. functionality is in line with all key market trends: REDUCED TCO Nexign offers the best TCO in its segment. EVOLVING MOBILE COMMUNICATIONS of 2G connections and is predicted to reach STANDARDS: FROM 4G TO 5G Today, 4G 50% of all connections in 2019. At the same technology predominates: the number of time, 2018 marked an important stage in the 4G connections has exceeded the number development of 5G technology: the relevant
30 31 ANNUAL REPORT 2018 NEXIGN COMPANY OVERVIEW
This product allows providers to diversify their NEXIGN NETWORK revenue sources, accelerate the launch of new MONETISATION SUITE services (including 5G and IoT services), increase customer loyalty, and optimise their TCO
A versatile solution for real-time rating, charging, KEY BENEFITS: CSPs both in Russia and abroad. This solution and policy control for all network services: • Integration with the global digital marketplace opens up new opportunities to attract B2C and mobile and fixed communications, VAS services, using blockchain; B2B customers, including in the IoT field. It also $300 OTT services, and e-commerce. allows providers to significantly increase roaming • Direct integration with application service services revenue. providers and OTT services; billion • Flexible traffic management; THE EMBEDDED SIM CARD (ESIM) technology BY 2025, GLOBAL REVENUE FROM 5G • Reduction in time to market; developed and introduced worldwide by the SERVICES IS EXPECTED TO REACH GSMA continues to gain universal recognition. In • Reduction in total cost of ownership; $300 BILLION (JUNIPER RESEARCH) 2018, the new ecosystem reached a good level of • 5G- and IoT-readiness; maturity thanks to support for eSIM technology • Cloud-readiness. and the launch of new eSIM-based services by US, European, Chinese, Japanese, and Thai providers.
MOBILE MONEY Nexign Network Monetisation Suite is easy to adapt to Mobile devices have become a key channel for 77.9 % information-sharing, now generating more than customer needs and is constantly evolving in line with THE MARKET FOR BLOCKCHAIN- 50% of all web traffic. Growing numbers of people market trends: BASED SOLUTIONS FOR THE use smartphones and tablets to make purchases TELECOM INDUSTRY IS EXPECTED TO online. Taking advantage of this trend, CSPs GROW BY 77.9% YEAR-ON-YEAR VIRTUALISATION In 2018, Nexign announced its exclusive are increasingly offering various mobile money (INFOHOLIC RESEARCH) 5G launches would be impossible without partnership with blockchain solution services, competing with traditional financial the development of Software Defined developer Bubbletone. Nexign and Bubbletone organisations. Network and Network Functions Virtualisation collaborated to create the innovative technologies and their appearance in CSPs’ TeleChain Broker solution, a secure digital technological landscapes. Both fields are blockchain-based marketplace with seamless developing apace thanks to leading Tier BSS integration. When they connect to the 1 providers who are drawing on the open marketplace, CSPs across the world will be source community. able to create new roaming products and package offerings with digital offerings that go BLOCKCHAIN beyond communications services. Providers Blockchain technology is currently evolving will be able to create individual packages for rapidly. We are seeing a shift in solutions their roaming subscribers. This product is offerings from the B2C segment to the more the first of its kind on the global market and conservative and technologically complex B2B. has already attracted the attention of major
32 33 ANNUAL REPORT 2018 NEXIGN COMPANY OVERVIEW
Nexign IoT Platform helps CSPs increase NEXIGN IoT PLATFORM their revenue by bringing new IoT services to market and allowing enterprises to optimise their workflows
Nexign IoT Platform helps CSPs to increase their KEY BENEFITS: DISTRIBUTED EDGE revenue by offering new IoT services, and lets For communications service providers Developing support for distributed infrastructure enterprises focus on their business by digitalising for processing data at edge nodes in situations • New monetisation models; $1.1 workflows and reducing costs. The platform where fast, accurate decision-making is critical. • Increase in corporate customers; complies with 3GPP and OneM2M standards, ARTIFICIAL INTELLIGENCE trillion and allows IoT devices to be managed, IoT data • Optimal TCO. Using artificial intelligence to increase data analysis to be collected and analysed, and IoT apps to For organisations accuracy, resulting in faster, more reliable decision- BY 2025, THE GLOBAL IOT MARKET be integrated. It also allows partner ecosystems • Focus on business; making, as well as to reduce manual labour. IS EXPECTED TO REACH $1.1 TRILLION, to be created to offer comprehensive solutions • Reduced operating costs; COMPARED TO $166 BILLION IN 2016 to enterprises. Nexign IoT Platform provides MACHINE LEARNING (GSMA INTELLIGENCE) • High level of security. an advanced level of security while helping Applying advanced machine learning algorithms businesses to achieve their IoT goals with to predict events, streamline analytics, and catch maximum efficiency. anomalies in time.
BIG DATA Real-time collection, integration, and continuous 18% analysis of big data from the IoT ecosystem to THANKS TO NEXIGN IOT PLATFORM, support decision-making systems and boost A TIER 1 CSP INCREASED ITS IOT business productivity. MARKET SHARE FROM 19% TO 37% As IoT technologies continue their rapid evolution, Nexign is WITHIN THREE YEARS constantly improving its IoT platform in line with market demand, particularly in the following areas:
INDUSTRIAL IoT SMART CITY Continued development of the industrial Centralised management and online monitoring Internet of Things to help enterprises to of urban flows with the goal of reducing complete their digital transformation, reduce spending, optimising resource use, and costs, and increase productivity. responding promptly to incidents.
IoT SECURITY DIGITAL TWINS Ensuring the security of both solutions and the The ability to create digital twins (models of services built around them through analyses of physical devices) in digital space in order to device behaviour and IoT data, for objectives monitor them in real time, without the need to such as fraud prevention. interact with the physical devices directly.
34 35 ANNUAL REPORT 2018 NEXIGN COMPANY OVERVIEW
Working with Nexign lets telecom providers NEXIGN SERVICES focus on their core business objectives, including expanding their customer base and increasing revenue
Nexign offers comprehensive customer advantage. Nexign helps customers to fine- The Digital Business Support service includes: support, ensuring that its customers can make tune their internal ecosystem so that all of its • Incident resolution, identification, and removal KEY high-quality and maximally efficient use of elements help accelerate business processes of underlying causes; BENEFITS its product solutions. In addition, the Nexign and do not impede communication with end • System servicing and stability improvements; team provides consulting services to optimise users. The company offers consulting services • Configuring systems to meet new demands. businesses and introduce new cutting-edge in the following areas: MAXIMUM PROCESS TRANSPARENCY FOR THE CUSTOMER practices. Our 27-year track record enables us • Business process modelling, audit, and MANAGED OPERATIONS SERVICES FOR to successfully implement digital transformation reengineering; THE COMMUNICATIONS INDUSTRY CLOSE COLLABORATION for Tier 1 and Tier 2 communications service • Solutions design; Working with Nexign lets telecom providers BETWEEN THE CUSTOMER’S providers while keeping costs low and • Identifying optimal project configuration focus on their core business objectives, including TEAM AND NEXIGN workflows uninterrupted. and managing implementation; expanding their customer base and increasing revenue, while Nexign handles the comprehensive AGILE APPROACH TO PROJECT BUSINESS TRANSFORMATION • Knowledge transfer. management of their applications, operational EXECUTION, DEVOPS-BASED DELIVERY SERVICES DEVELOPMENT AND DELIVERY Thanks to their collaborations with Nexign, activities, and infrastructure. This approach to Our work with customers is based on a providers have achieved record results in business model organisation has proven itself as combination of Agile and DevOps methodo- CLOUD PLATFORM TO AUTOMATE areas including shortening TTM, reducing a way to reduce expenditure, optimise business logies, and is carried out as a collaboration DELIVERY PROCESS accompanying spending (by up to 30%), processes, and accelerate TTM for new products. between the Nexign team and the customer’s optimising and automating business processes, team on cloud management platforms. SERVICE QUALITY GUARANTEED improving the quality of their offerings, and Thanks to this approach, customers can BY TRANSPARENT SLAS increasing the transparency of interactions immerse themselves in project activities, between IT and other departments. immediately access exhaustive information about project progress, and monitor the DIGITAL BUSINESS SUPPORT business transformation process at every stage. Nexign offers customers various technical Integrating contractor and customer teams support and consultation programmes, allows us to achieve impressive business results including 24/7/365 support. Customers are free and fulfil customer tasks on time to choose the maintenance option that suits and within budget. them best. The technical assistance that comes with Digital Business Support is not restricted OPERATIONAL EXCELLENCE by time zone and ensures that customers’ CONSULTING SERVICES problems are resolved as quickly as possible. The speed at which new services are brought tomarket is a critically important parameter for CSPs looking to preserve their competitive
36 37 ANNUAL REPORT 2018 NEXIGN COMPANY OVERVIEW
In 2018, the company’s main customers were KEY PRINCIPLES OF OUR WORK major mobile and landline service providers WITH CUSTOMERS AND PARTNERS whose combined subscriber base totalled over 200 million subscribers
BASIC PRINCIPLES: professionals who all contribute to optimising PARTNERS and refining products and services and who are Nexign is mindful of its choice of • Nexign prioritises its collaborations with customers, which are based on openness, all conscious of their personal responsibility to partners and how it collaborates with them. transparency, and building long-term partnerships; colleagues, management, and customers for The company creates strategic alliances • Nexign is committed to meeting all its customers’ business needs; the outcomes of their work. with leading international developers. • Nexign uses a variety of approaches to project management. Chief among them is the Merging teams allows us to strengthen our In 2018, the company’s main customers were combination of Agile and DevOps methods, to which the company owes its deep integration position on new markets, complete major major mobile and landline service providers of its own team with the customer’s team. This allows us to save time at all stages of the projects, and increase brand recognition. whose combined subscriber base totalled over project lifecycle and achieve the best possible results in the shortest possible timeframe. 200 million subscribers. Nexign’s solutions for creating new revenue streams and raising profit margins help providers to claim and maintain Markets’ and customers’ requirements are our business processes with the goal of further leading positions on their regional markets. increasing faster with every passing year. streamlining them. Today, Nexign’s solutions support more than To preserve their leading positions in high- 50 CSPs in 16 countries around the world. tech business, companies must constantly The company is continually working to improve and offer fundamentally new solutions. introduce new technologies and international Throughout 2018, Nexign prioritised analysis of best practices. Nexign is a tight-knit team of
TRUSTED BY OVER 50 CUSTOMERS TECHNOLOGIES SOFTWARE
GLOBAL PARTNERS
38 39 The rapid development of digital technology and evolution of end user demands are leading to major changes in the telecommunications market and require increased agility and openness
Success stories ANNUAL REPORT 2018 SUCCESS STORIES
Nexign introduced a single integrated BSS platform for convergent pricing and billing that allowed for TCO optimisation and completely satisfied MegaFon’s requirements
BACKGROUND Time to market (TTM) for new products MegaFon has always been a trendsetter and a and services is a key differentiator in the technology pioneer. It was the first company telecommunications industry. MegaFon was among mobile operators to introduce standards struggling to ensure a competitive TTM because for 3G, 4G, LTE, and LTE Advanced. each branch required a different time period to configure different billing settings. Today MegaFon is a leading pan-Russian provider of digital opportunities, operating MegaFon decided to replace the seven billing across all segments of the telecommunications systems with a new, world-class unified billing market. system. The goal was to achieve the following strategic initiatives: In 2009, MegaFon underwent a significant • Realise digital and business transformation restructuring as part of corporate expansion • Improve the customer experience and plans. All branches were combined into a single quality of service company, resulting in seven separate billing systems. • Centralise and accelerate the process of launching new business initiatives Each billing system was customised to meet the • Create an ecosystem that enables the rapid Company: MegaFon SUCCESS STORY SUMMARY requirements of the relevant branch. However, integration of external partners Unifying billing systems is always a challenge, but Region: Russia and Tajikistan even MegaFon’s high-end hardware couldn’t • Optimise the total cost of ownership (TCO) try unifying seven different systems across 10,000 keep pace with rapid subscriber growth and the Number of subscribers: 76 million • Become technological leaders in the Russian kilometres. creation of new products and services. Nexign solution: Nexign Digital BSS telecommunications market Year introduced: 2015 MegaFon succeeded with help from Nexign, which developed a unique Nexign Digital BSS solution.
Thanks to its modular design, this world-class BSS has allowed MegaFon to reduce TTM by a factor of three, improve the customer experience, and unify business processes and organisational structures at a federal level.
Sergey Nikiforets Digital Services Director, MegaFon
42 43 ANNUAL REPORT 2018 SUCCESS STORIES
There is no Russian or global BSS product as multifaceted as MegaFon’s. It is the ideal solution for a pan-Russian provider of digital opportunities and a leader in the global telecommunications industry
THE SOLUTION transformation. It delivers ultra-high levels of THE RESULTS components produced by Nexign that have After evaluating several Business Support availability, reliability, and capacity, thanks Reduces TTM for new products and services: been used in projects all over the world. Modern System (BSS) solutions on the market, to a flexible, distributed architecture based Nexign reduced TTM by a factor of three, and aligned with industry standards, the system MegaFon decided to partner with Nexign to on physical and logical redundancy and load enabling MegaFon to not only maintain its helps MegaFon to increase revenue by creating deploy an entirely new, one-of-a-kind billing sharing. competitive edge in the industry, but to surge new capabilities for network monetisation while system. ahead of the pack. Nexign also accelerated keeping the user experience transparent for This isn’t the first time MegaFon and Nexign integration with business partners and is subscribers. Nexign delivered an end-to-end unified BSS for have worked together. They’ve collaborated on helping MegaFon to build its next-generation convergent rating and billing that optimises projects since 1996, making their partnership product catalogue, which simplifies Optimises TCO and supports long-term TCO and fully supports MegaFon’s digital the longest in MegaFon’s history. the partner experience for faster deployment. growth: There is no Russian or global BSS product as multifaceted as MegaFon’s. It is the Achieves ultra-high levels of availability, ideal solution for a pan-Russian provider of reliability and capacity: To support MegaFon's digital opportunities and a leader in the global exponential growth, Nexign developed a telecommunications industry. With its ability to support a subscriber base of over 100 million flexible and reliable convergent billing system and accommodate complex pricing policies adjustable in real that easily supports today’s peak load of more time, the Nexign Digital BSS currently has no equivalents on than 50,000 charging and policy transactions the market. per second. The system is built on mature
Sergey Nikiforets Digital Services Director, MegaFon
A big benefit of working with Nexign is the delivery method. Throughout implementation, legacy systems continued “We have a true partnership with Nexign,” said One of those goals was a smooth running, so business initiatives and subscribers were not Andrey Knyazev, Business Systems Director implementation. Nexign’s DevOps affected. at MegaFon. “Unlike most projects that have a delivery model and the billing system’s clear client-vendor relationship, this was a joint distributed architecture allow the system to be Andrey Zhikin project between MegaFon and Nexign—two updated with no downtime and no impact on companies working as one team with one set subscribers. The system uses unique, cutting- Head of Commercial Direction for the Unified Billing of goals.” edge technologies and tools such as Cassandra, Project at MegaFon CouchBase, and Tarantool.
44 45 ANNUAL REPORT 2018 SUCCESS STORY
Nexign is helping Chinguitel to address the challenges of digitalisation, including digitising business processes to support growth.
THE CHALLENGE Chinguitel launched 27 new subscriber services Chinguitel has an excellent reputation for within the first 12 months of implementing providing subscribers with top-notch services Nexign. Almamoun said one of the most and constantly innovating. lucrative new services is based on geographical location. To improve subscriber services, Chinguitel replaced its outdated, inflexible billing system “We target locations where our market with a modern, converged solution designed share is low and offer a service that is for the digital era. extremely competitive,” he said. “We gain new subscribers, and they gain best-in-class THE SOLUTION service.” Following careful consideration of several solutions, Chinguitel chose Nexign’s Business Chinguitel’s subscriber base is growing fast. Support System and Network Monetisation It is expected to reach 1.5 million by the end Suite. of 2019.
“Nexign unifies each subscriber’s services, “We have more leverage in the market than enabling us to bill accurately,” Almamoun said. ever before because Nexign makes business “Nexign also helps us to be more competitive. operations more efficient,” Almamoun said. Company: Chinguitel Telecom SUCCESS STORY SUMMARY We’re creating innovative new services that “With unified subscriber information, our call Company Limited Chinguitel is one of the largest communications meet subscribers’ specific needs. Revenue is centre is able to resolve issues more efficiently. Before we deployed Nexign, subscribers’ Region: Northwest Africa service providers in Mauritania. increasing by 10% each year.” details were scattered in several locations, Number of subscribers: Over 1 million When Chinguitel’s billing system failed to bill Nexign solution: Nexign Digital BSS, subscribers accurately and revenue decreased, Nexign Network Monetisation Suite the company worked quickly to resolve the Year of deployment: 2017 problem. Chinguitel compared solutions from several companies and chose Nexign. Nexign Digital BSS and Nexign Network Monetisation Suite were the obvious choice. Billing and charging are more accurate, revenue is up by 10%, and our subscriber base is expected to reach 1.5 million by the end of 2019.
Radi Abdalla Ali Almamoun Chief Technology Officer, Chinguitel
46 47 ANNUAL REPORT 2018 SUCCESS STORY
Thanks to Nexign, all of Moldcell’s subscribers were migrated to a single convergent billing platform with no interruptions to their service or critical business processes
and calls were often sent to the technical for us ever since. Nexign manages our billing THE RESULTS team for resolution. Thanks to Nexign, calls to system so we can focus on providing the very Modern, converged solution boosts the technical team have decreased by 40%, best subscriber services.” revenue by 10% annually: Nexign Digital allowing them to focus on core duties such as BSS and Nexign Network Monetisation reporting and analysis, which also improves The very best subscriber services include Suite make business operations more Moldcell is a leading Moldavian mobile business efficiency.” digital services. Nexign is helping Chinguitel efficient, giving Chinguitel more leverage operator serving more than 1.5 million to address the challenges of digitalisation, in the market to boost revenue. subscribers. With cutting-edge technologies Efficiency is Nexign’s hallmark. Shortly after including digitising business processes to and a strong connectivity base, Moldcell Nexign completed implementation, Mauritania’s support growth, enabling analytic-based Subscriber base is projected to increase is a critical hub in the digital ecosystem, government announced an overhaul of the decisions to improve business agility, and by 50%: Nexign gives Chinguitel the maintaining an open line of communication country’s currency, which significantly altered creating more subscriber services to increase flexibility to offer new, competitive services between people, companies, and societies. its value. Nexign integrated the changes into loyalty and diversify revenue streams. that are predicted to grow the subscriber Moldcell is part of the Telia Company, a leading Chinguitel’s billing system within three weeks. base to 1.5 million by the end of 2019. global telecom provider. “We have plans to capitalise on the Internet “If Nexign hadn’t acted so quickly and of Things (IoT) so we can provide subscribers Digital transformation will support THE CHALLENGE efficiently, the government could have fined us with more personalised, relevant services,” long-term growth: Nexign’s engineering Only a highly experienced vendor capable up to USD $200,000,” Almamoun said. “One of Almamoun said. “We’re confident our digital excellence, customised processes, which of working flexibly with their customer could the things we value most about Nexign is their transformation will be successful and efficient allow the company to reduce spending and satisfy Moldcell’s specific convergent billing system needs. Nexign rose to the challenge, loyalty. They didn’t just leave after deploying with Nexign.” develop revenue-stream diversification, implementing a convergent billing solution their solution – they’ve been providing support will help Chinguitel to digitise its business. quickly and efficiently.
THE RESULTS Thanks to Nexign, all of Moldcell’s subscribers One of the key reasons for selecting Nexign was efficiency. The were migrated to a single convergent billing Nexign team implemented our new billing system and migrated platform with no disruptions to their service our subscribers in a record time of just over seven months, or critical business processes. As a result, whereas Nexign’s competitors said they needed up to 18 months Moldcell was able to reduce maintenance to complete the project. costs while improving reliability.
Radi Abdalla Ali Almamoun Chief Technology Officer, Chinguitel
48 49 ANNUAL REPORT 2018 SUCCESS STORY
Kyrgyztelecom improves the customer experience with Nexign
THE CHALLENGE “We wanted each customer to have one Kyrgyztelecom is a telecommunications account and pay one bill,” said Vladimir Bunin, provider serving all regions of Kyrgyzstan. It Head of the Software Division in the Billing is one of several providers in a relatively small System Maintenance & Support Department at country (it has a population of 6.2 million), Kyrgyztelecom. “It was also very important to so competition for customers is intense. offer customers a wider variety of rate plans to meet their individual requirements.” Kyrgyztelecom has been known for excellent customer service since it was founded in 1993. Kyrgyztelecom couldn’t offer a wide variety of To maintain that reputation, the company rate plans because rating and charging tools wanted to combine telephony and broadband had limited, pre-defined functionality. systems on one platform. The systems were on “Our subscribers need flexible rate plans, and separate platforms, so when a customer needed we strive to meet their needs,” said Vladimir phone and Internet services, they had to create Bunin. “We value every one of our customers.” two separate accounts and pay two separate bills.
Company: Kyrgyztelecom SUCCESS STORY SUMMARY Region: Kyrgyzstan Kyrgyzstan is a small country, so telecommu- Nexign Converged BSS enables us to offer subscribers two things nications providers are competing for a finite Subscribers: 456,000 we couldn’t offer before. Each subscriber will have a single account number of customers. Since all providers offer Nexign solution: rather than several accounts, making it easier for them to see all of similar prices for services, the provider that offers Nexign Converged BSS their services in one place and pay for them. We can also create a the best customer experience and most flexible wider variety of rate plans to meet subscribers’ diverse needs. Our Year of deployment: 2019 rate plans wins the most customers. industry is very competitive, so the customer experience must be exceptional.
Vladimir Bunin Head of Software Division, Billing System Maintenance & Support Department, Kyrgyztelecom
50 51 ANNUAL REPORT 2018 SUCCESS STORY
For the first time, Kyrgyztelecom can create flexible rate plans that align with customers’ diverse needs
THE SOLUTION needs. Customer loyalty is sacred to us – every THE RESULTS Speeds up customer service and scales for Kyrgyztelecom met with several vendors. Each customer counts.” Combines telephony and broadband on one the future. offered multi-platform solutions, except for platform. Customer service representatives Nexign. Another way Kyrgyztelecom is improving the Now Kyrgyztelecom can consolidate customer can identify and resolve subscribers’ problems customer experience is by providing customer data in a single account for each subscriber. twice as fast now. This is especially important The Nexign Converged BSS solution combines service representatives with a more intuitive Subscribers see all services in one place and as the subscriber base grows. The Nexign phone services and broadband on one user interface. It helps them identify issues pay one bill. Converged BSS solution accommodates more platform. When Kyrgyztelecom develops a faster and offer solutions. Now representatives than 1.5 million subscribers. global system for mobile communication serve subscribers twice as fast. Enables the creation and rollout of new, (GSM), that will be on this platform, too flexible rate plans. “The customer experience is key in our For the first time, Kyrgyztelecom can create “Now we can provide each subscriber with a industry,” Bunin explained. “The improvements flexible rate plans that align with customers’ single account,” Bunin said. “They can see all we’re making will likely grow our subscriber diverse needs. Flexible rate plans give of their services in one place and pay one bill. base.” Kyrgyztelecom a competitive edge. It’s faster and easier for them, which improves the customer experience.” Kyrgyztelecom can grow the subscriber base as large as it wants. The Nexign solution is The Nexign solution includes Nexign Network designed to support more than 1.5 million Monetisation Suite for online billing and policy subscribers. Nexign provides high-quality technical support in a timely management. Nexign Network Monetisation manner. Their support is professional and always complies Suite features a revenue management system Bunin noted one additional benefit. “Nexign with our service level agreements. to improve the management of accounts provides us with high-quality technical They’re more than a vendor – they’re a reliable partner. receivable. support in a timely manner. Their support is professional and always complies with our “Nexign helps us do something else we service level agreements. They’re more than couldn’t do before,” Bunin said. “We can create a vendor to us. They’re a partner.” Vladimir Bunin new rate plans to meet subscribers’ diverse Head of Software Division, Billing System Maintenance & Support Department, Kyrgyztelecom
52 53 We know our field and today’s job market well and work constantly to improve our recruitment and onboarding processes
Human capital ANNUAL REPORT 2018 HUMAN CAPITAL
COMPANY MANAGEMENT
Yulia Poslavskaya Vladimir Igor Gorkov Alexey Volynkin Corporate Perevolotskiy CEO Chief Business Communications Chief Operating Officer Director Officer
Andrey Bronfin Natalia Komleva Ahmad Sayed Andrew Tan Chief Technology Chief Financial Regional Director, Regional Director, Officer Officer Middle East and Africa Southeast Asia
Olga Dobryakova Loukas Tzitzis Maksim Anashkin Andrey Gulidin Chief Human Resources Chief Products and Regional Director, Account Management Officer Marketing Officer CIS and Russia Director
56 57 ANNUAL REPORT 2018 HUMAN CAPITAL
Women 28%
Men 72%
OUR WORK FORCE Employee count growth rate Nexign has in-depth knowledge of the IT and telecom industries, as well as the trends on 1900 today’s job market. We work constantly to 1800 +13% improve our recruitment and onboarding 1700 processes, attract high-quality talent and create 1600 a well-developed and straightforward motivation system. 1500 1400 In 2018, the company continued to grow its 0 productive capacity in line with our chosen Dec 2017 Dec 2018 strategy for expansion into new target markets. Over the course of the year, the company hired Nexign values employees’ contributions to our growing business and uses various methods to 668 new employees, 62% more than in 2017. Now motivate our team, including intangible rewards. In 2018, the company awarded individual and our team numbers 1819 people, including 32 Distribution of workers outside of Russia team prizes for the most outstanding results in various fields. The awards were given in four outside of Russia, in Azerbaijan, Belarus, Greece, as of 31/12/2018 categories that corresponded to Nexign’s new corporate values: Armenia, Kazakhstan, Lithuania, Kyrgyzstan, Ukraine, and Moldova. The company is also Independent Employees: represented by contractors in Ukraine, Turkey, contractors: #OneTeamOneDNA – for teambuilding Singapore, Germany, the UAE, and Israel. Azerbaijan 1 Ukraine 21 contributions Nexign provides decent working conditions Armenia 1 Turkey 2 #OwnResult – for quality of work, contributions +668 for all its workers, from experienced experts to Belarus 7 Singapore 3 to company growth and results achieved young professionals, with a high potential for NEW EMPLOYEES, Greece 1 Germany 1 growth, regardless of gender and physical ability. #DriveChange – for readiness to learn, to share 62% MORE THAN IN 2017 Kazakhstan 10 UAE 3 knowledge and ideas, and the ability to solve Eleven people with disabilities work alongside the most difficult problems and overcome any their able-bodied colleagues at the company. Kyrgyzstan 1 Israel 4 Nexign is a fairly young company: the average obstacles Lithuania 1 employee age is 34. #ThinkCustomer – for quality of customer Moldova 1 relationships and striving to meet customer Ukraine 9 needs to the fullest extent possible Total 32 34
58 59 Nexign is a community of people with common values
Corporate social responsibility ANNUAL REPORT 2018 CORPORATE SOCIAL RESPONSIBILITY
The office is equipped with an enhanced security system with biometric identification fingerprint scanners, as well as an advanced emergency warning system
NEW NEXIGN HEADQUARTERS In 2018, the company moved to a new, comfortable office, located at 4 Uralskaya Street, Saint Petersburg. We recruited Russian architectural firm UNK Project, which has worked with companies including Google, Microsoft, Mail.ru, and Disney Studios, to design our space in the new building.
The office on Uralskaya Street features over 9000 m2 of space and 5 floors, with office space, conference rooms for various kinds of meetings, a gym, a doctor’s office, relaxation areas, and lunch spaces. CORPORATE SOCIAL RESPONSIBILITY training courses for Nexign employees aimed Nexign is a community of people with common at fostering an anti-corruption culture, in values. The company recognises its corporate keeping with the company’s anti-corruption The 400-square-metre roof is home to an open- independently navigate the space. The office social responsibilities and makes sure that all policy; air terrace, where employees can hold team is equipped with an enhanced security system meetings, get fresh air as they work, or take a with biometric identification fingerprint Nexign team members are on the same page • creating a culture of ethical behaviour and break on the comfortable couches during the scanners, as well as an advanced emergency about their various aspects, which include: integrity that promotes transparency in warmer months. warning system, and all necessary fire • environmental responsibility; business on a global level. extinguishing systems. • social responsibility to colleagues, Nexign’s office is fitted with everything that Nexign considers corporate social responsibility customers, and partners; people with physical disabilities need to to be an indispensable part of the development • innovating to meet society’s needs; of our company and our brand. • running a trustworthy business and combating corruption – in 2018, representatives of Baker&Makenzie led
62 63 ANNUAL REPORT 2018 CORPORATE SOCIAL RESPONSIBILITY
Nexign is invested in growing our professional ecosystem, and we are working to build a future generation of experts in different fields
In 2018, Nexign specialists also gave lectures EDUCATIONAL PROJECTS and taught classes: In 2018, Nexign continued to develop • A year-long course on Java programming our educational projects, which include: for students at Saint Petersburg ITMO • The School for Software Testers: This University taught by a member of the project trains young employees in software NX Academy staff; testing theory and the basics of manual and automated code quality testing. The • Public lectures for students in IT-related programme is free for all participants and led fields at universities including ITMO and St. by the company’s best professionals; Petersburg Polytechnic University (SPbPU). • NX meet-ups: Nexign regularly hosts In 2019, Saint Petersburg’s leading STEM professional meet-ups with guest experts universities – the Saint Petersburg State in project development, testing, and Nexign is invested in growing our professional University of Aerospace Instrumentation (SUAI), TALENT SUPPORT management. Our company has built a multifaceted ecosystem, and we are working to create the ITMO and SPbPU – were invited to participate in the Nexign Bootcamp. We are also considering professional development and skills upgrading next generation of experts in different fields. This is a platform for IT professionals to inviting universities from other regions of system for our employees. Every year, workers The company collaborates and actively partners discuss today’s most pressing questions. Russia. attend training courses and take part in industry with Russian STEM universities that have top Over 500 people attended the company’s conferences and business events. Our Study programmes in fields related to information meet-ups in 2018. Project Laboratory and NX Academy Training technology. As part of the Nexign Bootcamp Centre have been successfully conducting in 2018, 46 students interned in departments various educational programmes for over two including R&D, analytics, tech support, years. maintenance, and testing. 29 interns received job offers.
64 65 ANNUAL REPORT 2018 CORPORATE SOCIAL RESPONSIBILITY
The company recognises its corporate social COMMUNITY SERVICE responsibilities and makes sure that all Nexign CAMPAIGNS team members are on the same page about them
In 2018, Nexign participated in various community service events and organised its own charity campaigns:
• We held a volunteer clean-up day at the children with cancer who were forced to Home for Disabled Children No. 1 in Peterhof, spend the New Year in hospital were able to where we painted benches, litter bins, receive presents; swings, and gazebos; • The Charity Instead of Presents campaign • The company held two blood drives in 2018 took money earmarked for gifts for our with a total participation of around 80 people, partners and spent it on organising a party for and as part of the Bravery Box campaign, the the care recipients at the Enjoying Old Age donors spent part of the compensation they foundation; received for food to buy boxes of toys for • The company participated in the Project for hospital rooms, to cheer up young patients; Real Wizards campaign, where employees • Together with the foundations AdVita brought New Year’s presents to children from and Anton’s Right Here, we organised the children’s homes. #GivingTuesday charity fair; • We organised a charity drive for AdVita’s visiting patients – thanks to the campaign,
ENVIRONMENTAL RESPONSIBILITY Nexign is intentional about its interactions with the environment and reduces the impact from its waste: • The company uses only reusable dishes and paper plates in our office kitchens; • All offices are equipped with receptacles for plastic lids and for used batteries.
66 67 ANNUAL REPORT 2018 CORPORATE SOCIAL RESPONSIBILITY
Nexign prioritises combating ANTI-CORRUPTION corruption POLICY
Nexign has a zero-tolerance approach to corruption. The company’s anti-corruption policy, in effect since 2013, is fully compliant with Russian Federation law and reflects the requirements outlined in the US Foreign Corrupt Practices Act and the UK Bribery Act.
NEXIGN’S GUIDING PRINCIPLES • Regular information-sharing and education: IN THE FIGHT AGAINST CORRUPTION: publishing our anti-corruption policy on our corporate portal, sharing information and • Our leadership’s mission: creating an ethical encouraging employees to follow the standard that rejects corruption in all forms policy’s key principles and requirements. wherever it appears, whether in everyday In 2018, representatives of Baker&Makenzie activities or strategic projects led training courses for Nexign employees (a zero-tolerance policy); aimed at fostering an anti-corruption culture; • Periodic risk assessment: identifying and • Monitoring and control: compliance control updating our corruption risk barometer; and improvements to appropriate corruption • Appropriate anti-corruption procedures: prevention procedures. developing and introducing procedures to reduce identified corruption risks;
• Contractor checks: assessing contractors’ tolerance of corruption in accordance with established procedure;
68 69 ANNUAL REPORT 2018 RISK MANAGEMENT
RISK MANAGEMENT
Nexign’s activities, like those of any company, Today’s high-tech market is characterised by are attended by various kinds of risks that can highly competitive world players. In addition, cause us to fail to achieve our goals. Nexign our BSS solutions are directly vulnerable to recognises the existence of risks and strives social risks related to potential changes in to manage them systematically. subscriber behaviour. Nexign strives to predict not only future demand from our customers, Nexign’s goal in this area is to boost the but also the needs of their subscribers effectiveness of management decisions by and align our work with industry trends. analysing their accompanying risks, as well as to ensure maximum effectiveness of our risk Nexign’s activities have never been management activities as these decisions are political – the company is exclusively carried out. focused on growing our business and building long-term partnerships with our Nexign is guided by the following general customers. Nonetheless, in May 2018 the principles: company was included by Ukraine in a list • Risk awareness: Company management of companies subject to sanctions. Because is regularly informed of risks, and the of the restrictions imposed upon us, the management system allows for horizontal company was forced to suspend its activities flows of information about risks; in the country after completely fulfilling our • Efficient risk management: Risk management obligations to our customers as outlined in decisions are made on the basis of a cost- their contracts. benefit analysis; Such events highlight the need for the • Continuity: continual risk identification, geographical diversification of our business, assessment and management and which is part of our ongoing strategy. subsequent analysis of the effectiveness of our risk management system.
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78 79 The exclusive rights to these materials, including the exclusive usage rights to the Nexign trademark, belong to Nexign JSC and are protected by intellectual property law.
Any usage, copying, reproduction, translation, modification, or broadcasting of these materials, in whole or in part, in any form or manner without the prior written permission of Nexign JSC is prohibited.
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