Digitalisation That Makes a Difference
Total Page:16
File Type:pdf, Size:1020Kb
Digitalisation that makes a difference Annual Report 2019 Contents Report by the Board of Directors Annual Review and Financial Statements Digia’s direction 3 Report by the Board of Directors 36 CEO’s review 6 Digia’s service areas 7 Financial Statements 47 Markets and Digia’s market position 8 Main statements in the consolidated Review of the strategy period 2016–2019 9 financial statements (IFRS) 48 Strategy 2020–2022 10 General information 52 Financial development 56 Responsible Digia 12 Human resources 62 Ethical and transparent business 14 Working capital 64 Financial responsibility 16 Capital structure 64 Human resources 17 Other items 70 Customers 20 Formulas for the indicators and reconciliations 75 Parent company’s financial statements (FAS) 77 Corporate Governance 23 Signatures to Annual Report and Financial Statements 84 Digia Plc’s Corporate Governance Statement 24 Auditor’s Note 85 Digia’s Board of Directors 29 Auditor’s Report 87 Digia’s Management Team 31 Digia’s salary and remuneration system for management 34 Digia’s Annual Report 2019 Contents Digia’s direction 6 CEO’s review 7 Digia’s service areas 8 Markets and Digia’s market position 9 Review of the strategy period 2016–2019 10 Strategy 2020–2022 Responsible Corporate Report by the Financial Digia’s direction Digia Governance Board of Directors Statements We help our customers Net sales, EUR million succeed in the networked Liikevaihto, miljoonaa euroa 150 132132 120 and data-driven world 112112 96 86 9090 86 Digia is a software and service company that helps its customers 81 renew themselves in the networked world. We work together to build 6060 a world where digitalisation makes a difference. 30 Success requires the capability to change. Today, layers of digitalisation, from business systems to in which professionals in different fields share the pace of change has accelerated even further. integrations, data analytics and digital services. information and pull together to achieve peak Technology is often the enabler: customers We implement extensive end-to-end digital performance. 00 20152015 20162016 2017 20182018 20192019 expect new kinds of digital services, processes solutions for our customers, tackling all the layers We operate in eight locations in Finland – run smoother when they are automated, and the of digitalisation. Helsinki, Tampere, Jyväskylä, Turku, Oulu, Rauma, utilisation of data opens up new kinds of business We can provide our customers with Vaasa and Lahti – and in Stockholm, Sweden. opportunities. In the digital world, you do not comprehensive maintenance, support and Digia’s net sales totalled EUR 131.8 million in succeed by copying what has been done before – monitoring around the clock if necessary. 2019. The company is listed on NASDAQ Helsinki you must boldly seek new ways of operating and We ensure that our services are updated and (DIGIA). creating value. developed constantly. We at Digia help our customers succeed Success hinges on renewal and learning, in the networked and data-intensive world. both for us and for our customers. Our number Our operations are based on high-level of personnel rose from about 1,000 to more than professional expertise, reliable solutions and 1,200 during the past year. Today, Digia is a learning long customer relationships. We know all the community with more than 1,200 members, Digia’s Annual Report 2019 4 Digia’s direction Responsible Corporate Report by the Financial Digia’s direction Digia Governance Board of Directors Statements Operating result, EUR million Operating result, EUR million Number of Employees, 31 Dec Key figures Number of employees, 31 Dec 10 1,500 EUR 1,000 2019 2018 Change, % 9.6 Net sales 131,824 112,122 17.6% 9 1,266 1,200 Operating profit 9,648 6,494 48.6% 1,091 8 - as a % of net sales 7.3% 5.8% 1,005 Result for the period 7,090 4,704 50.7% 900 872 7 - as a % of net sales 5.4% 4.2% 6.5 762 5.9 6 600 Return on equity, % 14.0% 10.2% 5.4 Return on investment, % 13.5% 10.6% 5 Interest-bearing net liabilities 22,616 12,707 78.0% 300 4 Gearing, % 42.5% 26.6% Equity ratio, % 47.2% 54.9% 3 0 2015 2016 2017 2018 2019 1.8 Number of personnel, 31 Dec 1,266 1,091 16.0% 2 Average personnel 1,186 1,069 11.0% Shareholders' equity 53,190 47,782 11.3% 1 Balance sheet total 114,116 88,104 29.5% 0 2015 2016 2017 2018 2019 Earnings per share 0.27 0.18 51.3% Digia’s Annual Report 2019 5 Digia’s direction 1 Responsible Corporate Report by the Financial Digia’s direction Digia Governance Board of Directors Statements A year of growth and company culture We create growth in our day-to-day work together with our customers. In 2019, we bolstered our offering and drafted Digia’s cultural principles to guide our daily work. Our net sales grew by 17.6 per cent and our operating profit improved by 48.6 per cent in 2019. Creating value through cooperation with customers Microsoft and Oracle ERP and CRM systems. In the strategy, we place particular emphasis on and partners is the foundation of growth. In this Responsibility starts from everyday work. the potential of data utilisation in our customers’ effort, Digia’s key strengths are its extensive offering For us, it means shouldering our responsibility services and business processes. and profound technological expertise, combined for the functionality of the solutions we provide At Digia, we believe in a world in which value with an encouraging and evolving work culture. to customers and the meaningfulness of the is created in ecosystems through smart data These were our key focus areas in 2019, too. work of Digia employees, while taking financial management . We are moving towards a symbiosis Culture is the ERP system of everyday life that results, environmental issues and society into between humans and software, where people guides our choices and lays the foundation for consideration. work with meaningful tasks while automation and continuous renewal, both at the level of individuals To develop our society, we also wanted to spark software do the rest. In this world, we are a trusted and the Digia community as a whole. Digia’s discussion in 2019 about the opportunities opened partner to our customers. four cultural principles were crystallised in 2019: up by digitalisation. As part of this discussion, we 2019 was a year of company culture and learning, sharing, courage and professional pride. organised the Digiarvoa 2019 competition, which growth for us. I would like to thank our customers, Digia’s overall offering demonstrated its encouraged participants to come up with ideas for employees, partners and other stakeholders for this effectiveness in 2019, as all five of our service areas how to develop Finnish society with digital means. eventful year. We are well poised for 2020. increased their net sales. Particularly strong growth The prize was EUR 100,000 worth of professional was seen in data analytics and utilisation, Microsoft expertise and work by Digia employees. The ERP systems, integrations and API management. competition was won by the Finnish Red Cross. In 2019, demand also continued to grow in both The idea behind its ‘Kukaan ei jää yksin’ service maintenance and 24/7 Service Center services. is to make it easier for volunteers to connect In line with our strategy, we continued to with people in need of help with the aid of smart Timo Levoranta systematically build our offering through both software and services. President & CEO organic development and acquisitions. In January 2019 marked the end of our previous strategy 2019, we acquired Starcut Oy, a specialist in mobile period. In 2016–2019, we strengthened our development. In August 2019, we bolstered our expertise and our overall offering and posted rapid business systems offering by acquiring Accountor growth. Digia’s new strategy for 2020–2022, Next The President & CEO of Digia, Timo Levoranta Enterprise Solutions Oy, which specialises in Level, is the next logical step in our growth journey. Digia’s Annual Report 2019 6 CEO’s review Responsible Corporate Report by the Financial Digia’s direction Digia Governance Board of Directors Statements Digia’s service areas Our services To ensure that the whole package works involves going beyond the surface. Digia reports on one business segment that comprises of five service areas. Digia’s service areas in 2019 were Digia Business Connect, Digia Digital, Business and Data and Service Center Digia Business Platforms, Digia Financial Platforms service design analytics 24/7 and Service and Digia Customer Operations. Management Digital services Digia Digital the efficiency of their core processes. These online services | mobile services | e-commerce | product data management systems also act as a flexible platform for digital We help our customers to utilise data and create business development. an excellent digital customer experience through Digia Business Platforms offers ERPs and productive services that have been designed with extended CRM solutions for companies of all sizes. Integration and API a customer-centric approach. We provide business Our offering comprises Microsoft D365 solutions, integrations | API | data platforms and service design, analytics, e-commerce Oracle NetSuite solutions and our own Digia solutions, and mobile and online services. Enterprise ERP product, which has been awarded the Key Flag symbol. Digia Business Connect Digia Financial Platforms is based around Business systems our Digia Financial Solutions product family, which This business area combines customer-centric, CRM | ERP | solutions for the financial sector tailor-made platform solutions with Digia’s solid is a market-leading solution for fund management expertise in integration.