Annual Report 2020 (xhtml)

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Annual Report 2020 (zip)

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BUSINESS AT A GLANCE





LONG TRADITION OF INVESTING IN INNOVATION, EXPANSION, AND TRANSFORMATION

A GLOBAL AND DIVERSE COMPANY



OUR PRODUCTS


PERFORMANCE & HIGHLIGHTS




Revenue

 

Revenue growth 

 

EBIT 

 

EBIT margin 

 

Net profit 

 

Free cash flow 

 

BUSINESS UNITS, PRODUCTS AND CLIENTS


Market share
Market potential
New clients in 2020

 


 

Revenue share

SimCorp Dimension® 85%
SimCorp Coric® 3%
SimCorp Gain™ 3%
SimCorp Sofia™ 4%
Third-party 4%

Shared clients

SimCorp Dimension®
SimCorp Coric®
SimCorp Gain™
SimCorp Sofia™
New standalone clients in 2020

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

SOLID PERFORMANCE
UNDERPINNED BY RESILIENT
BUSINESS MODEL


SimCorp delivered a solid performance in 2020 despite challenges caused by the COVID-19 pandemic with 17 new client wins, revenue of EUR 456.0m, EBIT of EUR 124.3m, and free cash flow of EUR 91.8m. A strategy on track, a highly loyal client base, and a deeply committed team position us well for a prosperous future.

Chairman, Peter Schütze and Chief Executive Officer, Klaus Holse

A resilient and vastly adaptable business model together with flexible, digital savvy staff have kept SimCorp on a good track during an unprecedented year.

While people, processes, and technology have all been challenged across our industry, SimCorp’s innovative solution delivery and business continuity have been largely uninterrupted through a time of significant market volatility. High adaptability to virtual collaboration among our clients and employees has enabled us to continue doing business and many clients have gone live or done upgrades with assistance from SimCorp staff working 100% remotely. This is the ultimate test of resilience, and we are grateful to our loyal clients and committed employees who have made this possible.

STRATEGY CONFIRMED AND TRANSFORMATION ONGOING

During 2020, the Board of Directors has confirmed the strategic direction, priorities, and imperatives as launched in 2019. Guided by our strategy, we have started our transition to become a true Everything as a Service company based on our cloud journey.

 

Throughout the year, we have seen solid proof-points of transition progress, as many of our new clients have signed as-a-service agreements, and several existing clients have migrated from on-premise to cloud-based as-a-service setups.

A steep increase in virtual collaboration during COVID-19 has fast-tracked the need for digitalization both at our clients and at SimCorp, with the majority of staff working from home. This trend further validates our move to the cloud. Cloud computing can help accelerate our digital transformation and offers a boost to innovation by empowering us to leverage new technologies like machine learning and high-performance computing.

SUSTAINABILITY AND ACCOUNTABILITLY

Leveraging cloud and new technologies is a key enabler of sustainability, which is a main focus for SimCorp. Reducing our CO₂ emission, expanding support for our clients’ ESG investments, creating a truly diverse and inclusive workplace, and ensuring meaning in work constitute our current sustainability priorities.

We believe that our employees and who we are as a company put us in a strong position to set ambitious sustainability targets, and we hold ourselves accountable for meeting these goals.

BUILDING AN ECOSYSTEM OF PARTNERS ON AN OPEN PLATFORM

A strong focus on building strategic partnerships, most recently with State Street, is part of our strategic imperative ‘Ecosystem enabled innovation’. The goal is to strengthen our capacity and ability to innovate and offer our clients optionality across their operations and the investment lifecycle, by leveraging an external ecosystem of partners.

Alongside a number of new partnerships in 2020, solid R&D investments have enabled us to further strengthen our offering, from additional standard platform solutions that shorten time to value for our clients to new capabilities within Datacare that meet client demands for more holistic managed data services.

SimCorp has also signed its first North American client development partner for Coric Digital Portal, a state-of-the-art client reporting SaaS portal built on Microsoft Azure, which offers SimCorp clients a next-generation self-service portal with digital insights and engagement analytics.

SUPPORTING CLIENTS WITHOUT THE CONSTRAINT OF BORDERS

In 2020, we announced the merger of SimCorp’s European market units, Central Europe, Southern Europe, and UK/Northern Europe/Middle East, into one integrated EMEA unit. The move is designed to support our clients by developing closer collaboration across borders and achieving greater scale and agility in key business functions.

The high increase in virtual collaboration across all geographies during COVID-19 has proved to provide even bigger benefits to our entire client base than an internal merger can generate. We will make sure to leverage these positive experiences also post-COVID-19.

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 2020, we paid a dividend of EUR 39.9m, equal to DKK 7.50 per share, and acquired treasury shares for EUR 10m. Based on the financial performance in 2020, the Board of Directors intends to propose to shareholders at the AGM a dividend of EUR 40.1m, equal to DKK 7.50 per share, for the financial year 2020. Furthermore, we plan to initiate a new share buyback program, acquiring treasury shares for a forecast amount of EUR 40m in 2021, split into two programs of EUR 20m each.

THANK YOU

Staying on track to sustained long-term growth and successfully meeting the challenges of COVID-19 has been fully dependent on our highly capable and committed employees, and we would like to thank everyone at SimCorp for your true dedication, agility, and relentless efforts. Based on a passion to never let a client down, every single employee has lived the culture of our company captured in “the 4Cs”, by being capable, collaborative, and curious, while demonstrating courage.

Our appreciation also goes to our shareholders and business partners for their trust and co-operation. Last but not least, we extend our gratitude to our loyal clients, new as well as existing ones, who have demonstrated great flexibility and adaptability to stay in close contact during these challenging times and continue to place their business with SimCorp.

PETER SCHÜTZE
Chairman of the Board of Directors

KLAUS HOLSE
Chief Executive Officer