SIMCORP AT A GLANCE


SIMCORP IS

The leading provider of native integrated front-to-back, multi-asset, investment management solutions to the world’s largest investment companies

A growth company that will strengthen its capacity and ability to innovate through an ecosystem of partners
 

Committed to providing value to our clients, shareholders, employees, and society alike
 

A challenging and diverse workplace for our dedicated and talented employees, who are all curious and capable, collaborate, and have courage
 

A strong business partner with +45 years of experience and an unprecedented implementation track record
 

Market-leading in allocating around 20% of revenue to R&D

OUR SOLUTIONS

SimCorp Dimension SimCorp Gain SimCorp Coric SimCorp Sofia

 

 
 
 
 

A GLOBAL COMPANY


 

SEGMENTS SERVED

Asset management
Fund management
Insurance
Life/pension
Asset servicing
Treasury
Central banks
Sovereign wealth
Wealth management

BUSINESS UNITS, PRODUCTS AND CLIENTS


Market share
Market potential
Number of new clients in 2019

 


 

Revenue share

SimCorp Dimension® 87%
SimCorp Coric® 4%
SimCorp Gain™ 1%
SimCorp Sofia™ 4%
Third-party 4%

Shared clients

SimCorp Dimension®
SimCorp Coric®
SimCorp Gain™
SimCorp Sofia™

Figures are based on SimCorp estimates. Market share is calculated as number of SimCorp Dimension clients relative to the number of potential clients in each market.

 


 

CEO AND CHAIRMAN LETTER

SUSTAINABLE GROWTH


SimCorp delivered a strong performance in 2019 with revenue of EUR 454.5m and EBIT of EUR 127.8m. Revenue in local currencies grew 16.9% and EBIT margin in local currencies improved by 0.7%-points. We welcomed 12 new SimCorp Dimension clients and grew business with existing clients. An updated strategy is in place to secure continuous long-term revenue and profit growth.

Chief Executive Office, Klaus Holse and Chairman, Peter Schütze

2019 proved to be a year of high growth for SimCorp, with reported revenue increase of 19% and EBIT improvement of 24%. A robust combination of winning new clients and expanding relationships with our existing clients secured a strong result in line with our ambitions.

2019 brought the total number of SimCorp clients above 300; with 12 new clients growing the number of SimCorp Dimension® clients to 199, 30 new clients from the acquisition of data management software provider AIM Software, our former partner, and the rest being SimCorp Coric® and SimCorp Sofia clients.

While complementing our data management offering with the strategic acquisition of AIM Software, we believe that a strong organic growth of 15.5% proves the relevance of our core front-to-back offering, ensured by our constantly high investments in R&D.

 

Solid R&D investments have in 2019 enabled us to further strengthen our offering, from additional standard platform solutions that shorten time to value for our clients to new alternative investments capabilities that meet client demands for more innovative investment strategies.

Our updated strategy positions us to remain a key business partner by adapting timely to changes in our clients’ needs and preferences

Based on evolving client needs, the current business environment, and the successful execution of our strategy, SimCorp’s ambition is to generate long-term, double-digit, annual revenue growth and improve our profitability margin, recognizing that there will be fluctua¬tions in both revenue growth and profitability margin from year to year, due to the timing of large deals and investments.

A KEY BUSINESS PARTNER

It is imperative that we remain a key business partner to our clients and adapt timely to changes in their needs and preferences. Going forward, we will continue to solve our clients’ business challenges and enable their success, but increasingly through a more holistic approach. We want to provide more complete offerings with a strong focus on business outcome. Furthermore, we will continue opening up our SimCorp Dimension platform to partners and clients for co-innovation, thereby creating an ecosystem of solutions. We have already begun the transformation towards delivering more and more of our offerings as a service. Today, we do not only deliver software, implementation, and support, but to an increasing extent, complete offerings hosted and operated by us.

TRANSFORMATIONAL STRATEGY

During 2019, the Board of Directors has worked closely with the executive manage¬ment team to develop a strategy that will enable us to stay a key business partner for our clients and keep us strongly positioned for the future.

The updated strategy sets the direction for SimCorp’s future, with the aspiration of em¬powering our clients to realize their ambitions by being the leading global provider of front-to-back, multi-asset, investment management solutions. While our native front-to-back offering and independence already sets us apart from the competition, our strategic imperatives and priorities will help us remain a trusted business partner.

Already, we see strong proof-points of the transition upon which we are embarking. We have a large number of clients that use more than “just” software from SimCorp, reflected in our ever-increasing service deliveries. We see existing clients migrating from on-premise to cloud-based as-a-service setups and we have a strong pipeline of SimCorp Dimension as-a-service clients across the globe.

PEOPLE VISION – THE FOUR Cs

People are at the core of everything we do at SimCorp. Our cultural fabric is what unites us as people, and also differentiates us as a company. The basis of how we work and the culture of the company is captured in “the four Cs”. Everywhere in our organization, we have highly ’Capable’ and skilled colleagues that ’Collaborate’ across boundaries with trust, integrity, and respect for each other. Together, we continue to evolve our organizational DNA by having the ’Courage’ to be truly ’Curious’ to learn, explore, and seek new ways of working. We are passionate about meeting the needs of our clients. We never let a client down!

DISTRIBUTION OF PROFIT

According to our profit distribution policy, we intend to pay dividends of at least 40% of the annual net profit and use additional cash to buy treasury shares depending on other cash requirements. In 2019, we paid a dividend of EUR 35.9m, equal to DKK 6.75 per share, and bought back shares of EUR 12.5m. Based on the financial performance in 2019, the Board of Directors intends to propose to shareholders at the AGM a dividend of EUR 39.9m, equal to DKK 7.50 per share, for the financial year 2019. Furthermore, we plan to initiate a new share buyback program, acquiring treasury shares for a forecast amount of EUR 20m in 2020, split into two programs of EUR 10m each.

THANK YOU

Our strong results and the realization of our future ambitions are fully reliant on our highly skilled employees and we would like to thank everyone at SimCorp for your dedication and hard work.

We would also like to express our appreciation to our shareholders and business partners for their trust and co-operation. While warmly welcoming our new SimCorp Gain clients, we also extend our gratitude to our loyal SimCorp Dimension, SimCorp Coric and SimCorp Sofia clients, new as well as existing ones, who continue to place their business with SimCorp.

PETER SCHÜTZE
Chairman of the Board of Director

KLAUS HOLSE
Chief Executive Officer

LEARN MORE ABOUT SIMCORP



REPORT
CSR statement and ESG report 2019
Acting responsibly is part of our DNA at SimCorp – as a company, as an employer, and as corporate citizens. Learn about our goals and activities.
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ABOUT SIMCORP
A global solution and services provider
We provide the most integrated solution for the world’s most successful investment managers, giving you a real-time overview of your entire business.
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SimCorp News
NEWS
Our latest news and announcements
2019 brought new companies and industry awards to SimCorp. Learn more about the awards and some of our recent client wins
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Careers
CAREERS
SimCorp’s success is built on people
SimCorp is a challenging and inspirational workplace for 1,870 dedicated and talented employees. Meet some of them in our videos.
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Annual Report 2019

2019 was a good year for SimCorp with organic revenue growth of 15.5% and a record high EBIT margin of 28%. We welcomed 12 new SimCorp Dimension clients and grew business with existing clients. An updated strategy is in place to secure continuous long-term revenue and profit growth. The results are a testament to the strength of our integrated solutions, our strategic position in the market, and our clients’ buy-in to the company’s strategic direction.