Financial Year 2017

 

Annual Report 2017

A transformational year for IFS

Download Annual Report 2017

2017 Q4 Update

Fourth Quarter (October–December 2017)

  • License revenue amounted to SKr 372 million (Q4 '16: SKr 302 million), an increase of 25 percent in constant currency.
  • Maintenance revenue was SKr 376 million (Q4 '16: SKr 329 million), an improvement of 18 percent in constant currency.
  • Consulting revenue amounted to SKr 446 million (Q4 '16: SKr 409 million), an increase of 12 percent in constant currency.
  • Net revenue totaled SKr 1,277 million (Q4 '16: SKr 1,055 million), an improvement of 24 percent in constant currency. 

Full Year (January–December 2017)

  • License revenue amounted to SKr 935 million ('16: SKr 770 million), an increase of 21 percent in constant currency.
  • Maintenance revenue was SKr 1,429 million ('16: SKr 1,242 million), an improvement of 15 percent in constant currency.
  • Consulting revenue amounted to SKr 1,705 million ('16: SKr 1,589 million), an increase of 6 percent in constant currency.
  • Net revenue totaled SKr 4,217 million ('16: SKr 3,649 million), an improvement of 15 percent in constant currency.

DOWNLOAD 2017 Q4 PRESENTATION

A transformational year for IFS

IFS showed outstanding growth in 2017 with license revenue up 21 percent in constant currency. This was achieved organically and by strategic acquisitions, and represents unquestionably an increase in our market share given that the underlying ERP market grew only by 8 percent.

The first transformational development in 2017 was the completion in January of the Mxi acquisition; this complement to our aviation and defense solution has increased considerably our offering and skills capability while gaining us strategic customers. In the summer, we acquired mplsystems to add advanced customer-engagement capability to our service-management offering, and also our local partner Field Service Management to consolidate our capability in the United Kingdom. We completed our largest acquisition ever in the fourth quarter, again in the service-management sector; with orkWave, we can address the small and medium-sized businesses (SMB) market with a multi-tenanted SaaS offering, thereby opening up a new market for IFS.

Our focus on service management continued with direct investments in resources, marketing, and product development, resulting in significant sales and the securing of high-profile customers; in their latest magic quadrant, Gartner ranked IFS as the supplier in field service management with the highest ability to execute. Our push into managed cloud accelerated and in line with increased demand we have continued to invest in our offering based on Microsoft Azure. Furthermore, the partner ecosystem in which we have invested over recent years has evolved into a large and enthusiastic community that is actively supporting IFS sales and implementations across the globe.

In 2017 IFS has been truly transformed through a high level of organic and inorganic investment that has been enabled by our owners EQT. We go into 2018 stronger than ever and able to attack our target markets better equipped than ever before.

Alastair Sorbie

President and CEO

Download: 2017 Q4 Presentation

2017 Q3 Update

Third Quarter (July–September 2017)

  • License revenue amounted to SKr 176 million (Q3 '16: SKr 176 million), an increase of 2 percent in constant currency.
  • Maintenance revenue was SKr 349 million (Q3 '16: SKr 317 million), an improvement of 12 percent in constant currency.
  • Consulting revenue amounted to SKr 401 million (Q3 '16: SKr 355 million), an increase of 15 percent in constant currency.
  • Net revenue totaled SKr 946 million (Q3 '16: SKr 860 million), an improvement of 12 percent in constant currency.

Year to Date (January–September 2017)

  • License revenue amounted to SKr 563 million ('16: SKr 468 million), an increase of 18 percent in constant currency.
  • Maintenance revenue was SKr 1,053 million ('16: SKr 913 million), an improvement of 14 percent in constant currency.
  • Consulting revenue amounted to SKr 1,259 million ('16: SKr 1,180 million), an increase of 5 percent in constant currency.
  • Net revenue totaled SKr 2,940 million ('16: SKr 2,594 million), an improvement of 11 percent in constant currency.

Download 2017 Q3 Presentation

IFS continues to execute well on its plans for strategic growth

Quarter Three has been truly transformational for IFS as the business has performed three acquisitions, all of which strengthen our position in the service market. FSM, which has been an established partner for many years, builds on our local execution capability in the UK. mplsystems adds a best-in-class Customer Engagement solution to our product offering, which is a key requirement in this target market. On the same day that Gartner published its latest Magic Quadrant for Field Service Management showing a further improvement for IFS’s position in the Leaders’ quadrant, we announced the largest acquisition in our history, that of WorkWave. This is a FSM company based in the USA that addresses the SMB residential market and is a leading SaaS solution for the growing pest control industry.
The underlying business for IFS remains strong with year-to-date license growth being 18 per cent (currency adjusted), which places us in a good position as we enter the busiest quarter of our financial year. Our year-to-date managed cloud revenue grew by 95 per cent (currency adjusted). A good outlook for the full year is supported by strong year-to-date performance and a series of successful strategic acquisitions.

Alastair Sorbie President & CEO

Download: 2017 Q3 Presentation

2017 Q2 Update

Second Quarter (April–June 2017)

  • License revenue amounted to SKr 216 million ('16: SKr 190 million), an increase of 11 percent in constant currency.
  • Maintenance revenue was SKr 354 million ('16: SKr 300 million), an improvement of 14 percent in constant currency.
  • Consulting revenue amounted to SKr 429 million ('16: SKr 420 million), a decrease of 1 percent in constant currency.
  • Net revenue totaled SKr 1,025 million (Q2 '16: SKr 923 million), an improvement of 8 percent in constant currency.

Year to Date (January–June 2017)

  • License revenue amounted to SKr 387 million ('16: SKr 292 million), an increase of 28 percent in constant currency.
  • Maintenance revenue was SKr 704 million ('16: SKr 596 million), an improvement of 15 percent in constant currency.
  • Consulting revenue amounted to SKr 858 million ('16: SKr 825 million), no change in constant currency.
  • Net revenue totaled SKr 1,994 million ('16: SKr 1,734 million), an improvement of 11 percent in constant currency.

Download 2017 Q2 Presentation

IFS has seen record growth year to date which, being significantly higher than the growth in the market, indicates that we are continuing to increase our market share. Our recent acquisitions, including Mxi, continue to perform well and are proving to be excellent investments. Over recent years, we have continued to invest in service management as we see this as a logical extension to our established markets of manufacturing, asset management, and project-based industries. Our analyst rating for service management continues to ride high and we are pleased with the exciting new customers in this sector that we have welcomed to IFS already this year.

We are seeing great interest in our managed cloud service from both existing and new customers; and we expect to see this develop increasingly as a significant part of our business. There is also a rising interest today in Digital Transformation and especially in the Internet of Things (IoT), which is coming from all sectors of our diverse global customer community.

IFS is continuing in its scaled-up investment program to develop strategic growth drivers in the business. A good outlook for the full year is supported by the strong performance seen in the first two quarters.

Download: 2017 Q2 Presentation

2017 Q1 Update

First Quarter (January–March 2017)

  • License revenue was SKr 171 million (Q1 '16: 102 million), an increase of 60 percent in constant currency and an increase of 26 percent in constant currency after adjustment for the acquisition of Mxi.
  • Maintenance and support revenue amounted to SKr 350 million (Q1 '16: 296 million), an increase of 15 percent in constant currency and an increase of 7 percent in constant currency after adjustment for the acquisition of Mxi.
  • Consulting revenue was SKr 429 million (Q1 '16: 404 million), an increase of 2 percent in constant currency and a decrease of 9 percent in constant currency after adjustment for the acquisition of Mxi.
  • Net revenue amounted to SKr 969 million (Q1 '16: 811 million), an increase of 15 percent in constant currency and an increase of 2 percent in constant currency after adjustment for the acquisition of Mxi Technologies.

Download 2017 Q1 Presentation

Our growth in license revenue in the first quarter was 26 percent, currency adjusted, compared to the same quarter last year. If we add in the contribution from our recent acquisition Mxi, which was completed this quarter, the growth figure is more than doubled. This shows that our strategy for both our organic and inorganic growth is executing well. It can be seen from the sample of customers provided below that we continue to win business across our target markets and in all our geographies. We are also seeing growth in our recurring maintenance of 7 percent, adjusted for currency, and notably a growth of 90 percent in our managed cloud offering. This growth demonstrates that IFS is a resilient business, given that a number of our target markets are still experiencing challenges.

We look forward to an exciting year of continued growth under our new owners EQT.

Download: 2017 Q1 Presentation

Investor Contacts

Chiara Lattuada

Telefon: +44 7463 350454

Contact Chiara Lattuada