SimCorp delivered solid performance and progress on its strategic imperatives in 2021. We achieved our financial guidance for the year, added nine new clients, and strengthened existing client relations. We are well positioned to continue our growth trajectory in the years ahead.
CEO and Chairman letter
SimCorp delivered ARR1 growth of 10.5% in 2021. Despite the continued impact of COVID-19, we expanded our engagement with existing clients, added nine2 new clients, and generated revenue of EUR 496.3m, EBIT of EUR 132.4m, and free cash flow of EUR 78.6m. A year in transition has positioned us for a prosperous future as a truly global technology-enabled service company with a highly relevant offering and strong client traction.
During 2021, we experienced a rising demand for our SaaS offerings and our cloud-based business services. This represents a significant opportunity for us to expand our business as we are increasing the pace of our transformation to a Software as a Service (SaaS) company. Our services portfolio and its inherent optionality demonstrate a strong fit with the increased focus among institutional investors on their core business processes and their wish to outsource non-differentiating operations.
Looking to the future with a successful CEO transition
2021 has in many ways offered the opportunity to reflect on our journey as a company. On September 2, we celebrated our 50th anniversary. The journey from 1971 has taken us far, with many significant milestones to celebrate. But the strongest testament to our success remains our dedicated employees and loyal clients from around the world. The strong partnerships we build and nurture together remain fundamental to our development and growth.
Extending our thanks and sincere gratitude for the successful evolution and growth during Klaus Holse’s nine-year leadership, we look ahead as our fourth CEO takes the wheel, sharing the same fundamental vision and values as his three predecessors. Christian Kromann brings strong industry knowledge, client focus, and execution power, which are fundamental capabilities to be able to take SimCorp successfully through its current transformation process.
We also reflect upon 50 years of company history, where our core commitment to our clients remains the same and is captured in our corporate purpose of ‘Enabling a prosperous life in a liveable world’. Our purpose, which continues to drive our business growth, is also what shapes our commitment to making a positive impact in a world faced with imminent challenges.
Our sustainability promise
We take on the responsibility to embed sustainability across all our business, as everything and everybody count. It is a journey, which starts with a commitment to go beyond what we are required to do. To succeed with this ambition, we have established a Sustainability Committee and a cross-organizational governance structure to ensure transparency and accountability for the targets we set.
Cloud and other innovative technologies are key enablers of sustainability, which we will leverage and explore to reduce the carbon footprint of our own and our clients’ operations. To help drive positive change in the world, we will provide the quality ESG data and transparency to our clients, which is in higher and higher demand.
And equally important, as our people are the core of everything we do, we will continue to strive to ensure a truly diverse and inclusive workplace with equal opportunities, and where all find meaning in work.
During 2021, we made solid progress on our strategic priorities, which have proven to be in alignment with the market trend towards cloud and business service offerings.
With more than 30 of our clients already running SimCorp Dimension as a Service (SCDaaS), we are well underway on our journey to become a true SaaS company. Going forward, our commitment is to offer a superior SaaS portfolio with immediate access to our expansive ecosystem of innovative offerings and tools. This will give our clients the agility and scalability they need to unlock their growth potential and stay competitive.
Despite the headwinds of COVID-19, where we have seen sustained impact throughout the year, we are very happy to welcome six new clients to SimCorp; four SimCorp Dimension clients and two standalone Coric clients. In addition, we welcomed three new clients through our outsourcing partners.
Distribution of profit
In 2021, we paid a dividend of EUR 40.1m, equal to DKK 7.50 per share, and acquired treasury shares for EUR 40.1m.
Based on the financial performance in 2021, 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 2021. Furthermore, we plan to initiate a new share buyback program, acquiring treasury shares for a forecast amount of EUR 40.0m in 2022, split into two programs of EUR 20m each.
Our strongly committed and skilled staff remains the foundation that enables us to stay uniquely positioned to achieve sustained long-term growth, while maintaining resilience against the continued challenges caused by COVID-19. We thank everyone at SimCorp for your persistent commitment, true engagement, and relentless hard work. Sharing a genuine passion to never let a client down, every single employee demonstrates daily 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 for their support of our strategy and our business partners for their trust and co-operation, all helping us in our efforts to increase our value creation. Last but by no means least, we extend our gratitude to our clients, new as well as existing ones, who have shown their commitment to stay strongly connected despite still challenging times and continue to place their business with SimCorp.
1 ARR: Annual Recurring Revenue Last Twelve Months.
2 Four new SimCorp Dimension, two new SimCorp Coric, and three new clients through our existing outsourcing partners.