Performance and progress

SimCorp delivered solid performance and progress on its strategic priorities in 2022. We achieved our financial guidance for the year, added 11 new clients, and strengthened existing client relations. We are well-positioned to continue our growth trajectory in the years ahead.

Strengthening our offering in a challenging business environment

2022 was a defining year for SimCorp as we continue to strengthen our front-to-back offering, delivering the industry's strongest platform and partner ecosystem. Although the year was characterized by turbulence and increasing geopolitical turmoil, we expanded our engagement with existing and new clients, delivering revenue of EUR 561.0 million, ARR-growth (backward-looking) of 16.1% and EBIT of EUR 125.9 million.

In 2022, we took additional steps to focus our business. To ensure that SimCorp has the right structure and people as it transforms to a SaaS company, 2022 saw continued investments into our SaaS operations and innovation. As our SaaS and tech-enabled services business continues to gain momentum, a key priority is to continuously strengthen our foundation and lay the steppingstones for the next phases of our growth journey. As part of that, we have sharpened our core value proposition in 2022, equipping clients with an ever-increasing array of choice when making key infrastructure decisions and futureproofing their technology platforms. Among other things, this was illustrated by a significant front-to-back deal with a tier one US financial institution for our full SaaS product suite. In total, we added 11 new logos to our client portfolio in 2022.

Chair, Peter Schütze and Chief Executive Officer, Christian Kromann

With the institutional investment industry facing new demands as a result of market turbulence, inflationary pressure and added operational and strategic complexity, we implemented several key initiatives to expand our offering. This included a number of new tech-enabled business service solutions designed to remove complexity from our clients’ non-core operations, as exemplified by the comprehensive investment operations services deal with US asset manager Intech.

Having aligned our delivery roadmap with current market needs during the year, we are in a strong position to continue our growth and our journey towards 2025. Across all markets in general, we signed a number of full front-to-back SaaS deals, and, during the year, we also signed our first-ever clients in Africa and Malaysia, with that continuing to increase our market presence in both EMEA and APAC. In the latter, we also entered into a strategic partnership with Challenger, a leading Australian investment firm, to form a stand-alone investment operations company. Moreover, the signing of a number of significant clients in the US resulted in a stronger footprint in North America, and at the turn of the year, we have leveraged now our offering towards new and broader market segments.

Challenging business environment

2022 was also a year marked by the war in Ukraine. With more than 240 colleagues based in Kyiv, we were shocked and saddened to witness the Russian invasion. The safety and wellbeing of our employees remains a key priority, and we have done and will continue to do whatever we can to safeguard and support our colleagues and their families, offering relocation and additional flexibility and support.

It remains a testament to the resilience and determination of our Ukranian colleagues that our development saw minimal short-term and no sustained disruption – and we thank them all for this.

We extend our admiration, thoughts and support, not only to our strong Ukrainian employees, but to all the people of Ukraine in these difficult times.

Accelerating our growth

As we ramp up and continue to invest in our SaaS offering, we are well positioned reach our strategic ambitions towards 2025, on which we made solid progress in 2022.

With more than 50 clients already running on our SaaS platform, and a growing number of clients either joining or migrating to our SaaS offerings, we continue to progress our transformation.

Looking ahead, we see several attractive growth drivers, and the strong fit between our products and general industry trends means that we continue to widen our target addressable market, yielding a substantial potential for new client deals in the years to come. In addition, we continue to see very high client retention rates and growing potential for upselling within our existing client base.

To ensure that we further extend the breadth and depth of our SaaS offering, leveraging the strongest and most versatile front to back platform in the industry, we are investing in three growth levers.

  • Platform leadership
  • SaaS acceleration
  • Ecosystem scaling

As we continue our transformation towards 2025, the continued delivery of these three core priorities will allow us to offer the optimal platform for supporting our clients’ evolving operating models, enabling them to seize business opportunities and support their operating model of choice.

Our sustainability promise

In 2022, we took important steps on our sustainability journey to gain more data and knowledge, create more transparency, and – ultimately - achieve bigger impact. Our sustainability agenda and our business strategy are fully aligned, and we are integrating sustainability steadily in all our business operations, client offerings, and in our commitment to our people and stakeholders.

We see a convergence of our goals and values with those of our clients, investors, and other stakeholders, and with the commitment of our employees to always do the right thing, 3we are confident that we can reach new important milestones in the coming year.

Distribution of profit

In 2022, we paid dividends of EUR 39.9 million, equal to DKK 7.50 per share, and acquired treasury shares for EUR 20 million. Based on the financial performance in 2022, the Board of Directors intends to propose to shareholders at the AGM a dividend of EUR 39.7 million, equal to DKK 7.50 per share, for the financial year 2022. We will continue to maintain a conservative financial policy, and we will allocate the necessary capital to successfully drive our transformation and sharpen our run-rate cost-efficiency.

Our appreciations

Our highly committed and skilled staff remains the foundation for us as a company. Our ability to deliver value to our clients, to grow, to innovate and ultimately to deliver sustained long-term growth is based on the contribution of our many colleagues around the world. We thank everyone at SimCorp for your loyal commitment, true engagement, and relentless hard work, demonstrating the culture of our company as captured in “the 5Cs”, by being caring, customer success driven, collaborative, curious, and courageous. Our thanks also goes to our shareholders for their support of our strategy and to 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 continue to show strong commitment to our company in times of uncertainty.