Investor Presentation Q4 2019.Pdf
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Innofactor Interim Report Q4/2019 February 25, 2020 Sami Ensio, CEO © Innofactor Plc 2019 Innofactor’s Business Driving the #ModernDigitalOrganization in the Nordic Countries Start Up – #1 in Selected #1 Microsoft-based #1 Microsoft-based #1 Provider of Cloud Everything for Everyone Micro Segments Provider in Finland Provider in the Solutions and Digital • Innofactor founded by • Microsoft SharePoint • CRM, BI and case Nordics Transformation in the Sami Ensio in Jan 2000 pioneer management included • Cloud transition Nordics • Innofactor’s first Microsoft- • First M&A activities in the offering • Several acquisitions in • Harmonizing offering based product ”Prime” • Reverse IPO, the Nordic countries across the Nordics released NASDAQ Helsinki • 20% growth and 1000 20% EBITDA 100 Revenue 900 90 Employees 800 80 +33% 700 70 / year 600 60 500 50 +47% / year 400 40 +67% 300 30 / year +91% 20 / year 200 10 100 0 0 Revenue, M€ Employees 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 © 2019 Innofactor Plc Innofactor – Leading Nordic driver of Modern Digital Organization Our team Customers Company • 500+ Nordic professionals • 1,500+ Nordic customers • Revenue 64+ MEUR (2019) • 15 enterprise level Microsoft • Strong industry • 14 offices in Nordic Gold competencies and knowledge in private, countries 1,600+ MSFT certificates public and membership • Listed in Helsinki Stock • 9 Microsoft Most Valuable based organizations Exchange (NASDAQ Professionals Helsinki), 11 000+ © Innofactor Plc 2019 shareholders Key Trends Driving Innovation Artificial Intelligence and Machine Learning Internet of Things (IoT) Robotics Augmented and Virtual Reality Innovation Enablers Block Chain Big Data and Social Next Gen Analytics Media Security 3D-Printing Cloud Mobility © Innofactor Plc 2019 Key Stakeholders of B-to-B Digital Transformation Engage Optimize customers operations Empower Transform employees products Source: Microsoft, 2019 Digital Feedback Loop Engage Optimize customers operations Data Capture digital signal across business Intelligence Data + 2 Data Connect and synthesize data intelligence Action Improve business outcomes Empower Transform employees products Source: Microsoft, 2019 Digital Feedback Loop Engage Optimize customers operations Data Capture digital signal across business Intelligence Data + 2 Connect and synthesize data intelligence Action Improve business outcomes Empower Transform employees products Source: Microsoft, 2019 Everything Goes to Cloud Microsoft Office 365 Intelligent business applications Productivity and collaboration Open, flexible, enterprise-grade cloud computing platform Source: Microsoft, 2019 Our Mission: Driving the #ModernDigitalOrganization Driving the #Modern MODERNI ORGANISAATIO EMOTIONAALINEN KUVA Digital Organization © Innofactor Plc 2019 We Fulfill It Every Day by Empowering Our Customers Engage our customers’ customers digitally in a way that’s most convenient for them Driving the Create business value, Build a secure, Make better accelerate innovation and scalable cloud decisions lever- #Modern increase productivity by platform for our aging advanced Digital digitalizing operations customers’ analytics, AI and Organization organizations machine learning Make our customers’ employees’ daily work more meaningful and productive through personal engagement and modern collaboration © Innofactor Plc 2019 Our Solutions and Services for Building a Modern Digital Organization and Driving Customers’ Growth More Personal Digital Customer Experience • Service Design • Mobile Apps & Web Services • Digital Customer Services & DevOps Higher Operational Productivity Secure Cloud Data-Driven Driving the • Customer Relationship Management (CRM) • Enterprise Resource Planning (ERP) Platform Business #Modern • Project & Portfolio management (PPM) • Cloud Infrastructure, • Business Intelligence Digital • Information & Case Management Governance, • Advanced Analytics, • HR & Talent Management Security & ePrivacy Artificial Intelligence & Organization • Customized Solutions • Identity & Access Machine Learning Management • Internet of Things • Integration, Power (IoT) & Digital Twins Platform & PowerApps Modern Employee Experience • Managed Cloud • Digital Office Tools Services • Modern Work & Teams • Mixed Reality & Telepresence © Innofactor Plc 2019 Our Delivery Model for Successful Design, Implementation and Adoption of Cloud Solutions to Maximize Customer Lifetime Value Implementation and Managed Services and Storyboard Foundation Delivery Adoption Continuous Development Evaluating the customer’s Defining the structure and Developing, tailoring and Focusing on ensuring that the Ensuring the solution is current state and helping governance needed to deploying the solution based organization and users adopt continuously managed and them shape the digital vision implement new solutions on proven concepts and the new solution so that its developed and meets the for their organization platforms benefits are fully realized organizations future needs Customer Experience Journey – Engage your customer digitally in a way that's most convenient for them Digital Operations Journey – Create business value, accelerate innovation and increase productivity by digitalizing your operations Employee Experience Journey – Empower your employees through personal engagement and modern collaboration tools Secure Cloud Journey – Successfully design, implement and utilize cloud services and build a secure, scalable cloud platform Data-Driven Business Journey – Empower your leadership and employees to make better decisions leveraging advanced analytics and AI © Innofactor Plc 2019 We Create Innovations with Our Leading Customers 1,500+ Commercial, Public Sector and Membership-based Customers Our Mission: Our Strategy: Our long-term financial goal is to grow profitably: Driving the #ModernDigitalOrganization By achieving annual growth of The best Nordic about 20 percent, of which Our Vision: professionals in majority is intended to be the Microsoft achieved by organic growth The leading provider of ecosystem organizations' digital By achieving about 20 percent transformation in each of the EBITDA in relation to the net Nordic countries Innovation Highly creation with productized cloud sales leading customers offering and By keeping the cash flow in selected managed industries services positive and securing solid financial standing in all situations A proactive, value-adding and flexible delivery model © Innofactor Plc 2019 Microsoft Has the Leading Ecosystem in Innofactor’s Strategic Focus Areas • Microsoft is the leading global provider in Innofactor’s strategic focus areas • By focusing on the Microsoft ecosystem Innofactor can attract the best talent and know-how and have close relations to Microsoft • If Microsoft were to lose its leading position in some areas Innofactor could transition to other partners in these areas Cloud infrastructure* Analytics* CRM* ERP** © Innofactor Plc 2019 * Source: Gartner 2016–2017, internet ** Source: Nucleus Research 2016, internet Innofactor Competitive Positioning in the Nordic EUR 10 Billion Microsoft IT Services Market +3–5% Nordic IT services market Large companies, in every Nordic Country, all 25 billion euro* solution areas, and several technologies - E.g. TietoEvry, CGI, Fujitsu and Accenture Nordic Microsoft >+5% IT-services market 10 billion euro** Our Competitive Advantage: - more skilled local professionals - better productized offering Mid-sized, not in - more flexible mode of operation Mid-sized, in all Nordic Our Competitive Our Competitive every Nordic Countries, Advantage: Advantage: Country, several - leading know-how - leading know-how in focusing on technologies in Microsoft-based Microsoft-based specific - E.g. Siili, Solita, solutions Our Competitive Advantage: solutions solutions Digia, - productized - Trustworthiness of a listed company - stronger industry - E.g. Atea, HiQ, Netcompany and offering - Established processes focus & knowledge Knowit and EG Precio - Strong customer references. - Broader offering Small companies, usually only in home market, one solution or one technology * Source: IDC, internet - E.g. Sulava, Cloudriven ja Proactive ** Estimate Microsoft market share to approx. 40% © Innofactor Plc 2019 Board of Directors Organization Pekka Eloholma (Ch.) Sami Ensio Anna Lindén Risto Linturi Sami Ensio President and CEO Markku Puolanne Vesa Syrjäkari Jufo Peltomaa CFO EVP, Biz Dev and Oper Excellence CTO - - PRODUCTS FINLAND SWEDEN DENMARK NORWAY AND SERVICES Sami Ensio Marcus Hasselblad Jørn Ellefsen Jørn Ellefsen President and CEO, Managing Director, Managing Director, Managing Director, Janne Heikkinen Country Manager, Sweden Country Manager, Denmark Country Manager, Norway EVP, Products & Country Manager, Finland Services Digital Business Productized Experience Productivity Solutions Heikki-Harri Kukkonen Tom Puusola Mikko Myllys Vice President Vice President Vice President Customers Jarkko Lindroos, Vice President Sales Jyrki Vepsäläinen, Vice President HR Satu Hilli, Director Board of Directors Anna Lindén proposed as the Chairman Sami Ensio Anna Lindén Risto Linturi Pekka Eloholma, Chairman Born in 1971, M.Sc. (Tech.) Born in 1973, M. Pol.Sc. Born in 1957, M.Sc. (Tech.) Born in 1960, M.Sc. (Tech.) Innofactor’s founder and CEO since 2000. COO of Nokia’s Mobile Networks business Chairman of the Board of Sovelto. CEO of Sitowise Oy as of August 15, 2019. Member of the Microsoft Corporation’s group