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Softline FY2011: steady growth twice as fast as the market rate Igor Borovikov Chairman of the Board of Directors of Softline [email protected] 05.05.2012
Softline FY2011: steady growth twice as fast as the market rateIgor Borovikov Chairman of the Board of Directors of [email protected]
Contents
Softline FY2011: We are leaders! Events and Achievements FY2011 Market trends Plans for Development FY2012-2014 Co-brands Q&A
Mission
Softline supports and helps:
Clients – to be competitive by using modern information technology.
Employees – ability to realise their potential in a leading technological company
The Government – no government can function without IT infrastructure. We are responsible for building the IT industry in Russia!
Developers – a unique marketing and sales channel. Students – unique knowledge for an interesting career
and lots of success.
Softline invests its profits in developing business in the countries where it is represented.
Softline is a company that future generations will value working for.
Softline – Business Principles
Leadership and quality – to be No.1 in all areas of business!
Dynamic development and innovation!
Honest and trustworthy partnership with suppliers, clients and employees!
Client-focused!
Efficiency of business
Social responsibility!
The best motivation to the best employees! Staff are the foundation of our business!
Competitive Advantages
Softline is a strong and reliable brand with 19 years experience in IT. It is recognised by vendors and clients.
Leading international company on the IT market with the largest network of representative offices worldwide – Softline is always nearby.
Full range of IT services: technical and legal support, training, consulting. Implementing projects in virtualization, security, CAD/GIS, CRM and ERP solutions, web development. Cloud solutions and SaaS, IaaS products.
Widest range of software – more than 3000 vendors.
Dynamically developing company with annual growth rates ahead of the market.
Head of the Company
Igor BorovikovChairman of the Board of Directors of Softline
Founded the company in 1993
Brought the company up to an international level
Is a member of the Presidium of the Russian Public Organisation for Small and Medium-Sized Enterprises OPORA RUSSIA, he heads the IT Committee
In 2010 he was featured among the top 25 most successful and effective business leaders in the crisis years of 2008-2009
Interests: philosophy, psychology, downhill skiing, hockey
Softline – 19 years of success on the IT market
Turnover in 2011FY - $601 mln
Most extensive range of software and a full set of IT-related services!
Represented in 23 countries and 65 cities worldwide!
Reliability recognised by clients, vendors and partners!
Softline: Main Areas of Business
Supply of software
Information security
Virtualization
CAD and GIS
Microsoft solutions
Personal data protection
Business consulting: ERP, CRM, SAM, ITAM
Cloud and SaaS
Training and certification
Web development
Technical support and outsourcing
HostingSupply of hardware
BI (Business Intelligence)
Softline 2011FY. Main Growth Indicators.
Turnover in 2011FY – $601 mln Growth: 132% – compared to 2010FY
and 207% – compared to 2009FY $456М in 2010 $290M in 2009 More than a SIXFOLD increase in
turnover in the last 6 years! Softline is growing much faster than
the IT market (the average growth of
the IT market in Russia is 12-15%) A strong team of managers at all
levels!
Softline: turnover dynamics $ mlnFacts and forecasts
Regional presence:23 countries, 65 cities
Regional presence: 23 countries, 65 cities
Moscow Arkhangelsk Barnaul Belgorod Vladivostok Volgograd Voronezh Ekaterinburg Izhevsk Irkutsk Kazan Kaliningrad Kemerovo Krasnodar Krasnoyarsk Murmansk Nizhny Novgorod
Novosibirsk Omsk Orenburg Perm Rostov-on-Don Samara St. Petersburg Saratov Tomsk Tyumen Ulyanovsk Ufa Khabarovsk Chelyabinsk Yaroslavl Surgut Penza Stavropol
IN RUSSIA
Azerbaijan Baku
Armenia Yerevan
Belarus Minsk Gomel Vitebsk Brest
Kazakhstan Almaty Aktobe Astana Karaganda
Kyrgyzstan Bishkek
Tajikistan Dushanbe
Turkmenistan Ashgabat
Uzbekistan Tashkent
Ukraine Kiev
Georgia Tbilisi
Moldova Chisinau
INTERNATIONAL
Mongolia Ulan Bator
Turkey Istanbul Ankara
Venezuela Caracas
Vietnam Hanoi Ho Chi Minh
Argentina Buenos Aires
Romania Bucharest
IN CIS
Colombia Bogota
Malaysia Kuala Lumpur
Peru Lima
Cambodia Phnom Penh
Laos Vientiane
Development of regions: countries, cities
Softline is trusted by leading market players
Clients about Softline
Boris KulakovROSNANOHead of the IT Directorate:“During our partnership with Softline certified specialists of the company have carried out a project to automate business processes that are important to our organisation using Microsoft SharePoint as a basis. We would like to thank the project group for the high standard of work and the follow-up system maintenance. We are pleased to recommend Softline as a reliable and responsible partner that fulfils its commitments on time and in accordance with high standards of professionalism.”
Georgy KozlovRusal OJSCHead of Web Technologies, IT Department:“This year we were faced with the task of creating a multilingual corporate portal. In order to carry out this project we hired Softline specialists who implemented a solution based on the Microsoft SharePoint Server platform. Our experience with the company allows us to say that Softline is a reliable and professional partner that fulfils its commitments. We are pleased with the results of the project and the work with the specialists of the project group and we are therefore continuing the development of our portal.”
Ilya TambovtsevBaltika BreweriesHead of Information Infrastructure Development:Baltika Breweries OJSC is able to recommend Softline as a reliable business partner supplying a wide range of software, a qualified consultant and a provider of solutions for virtualization and technical support.”
Softline works with more than 3000 software manufacturers
Vendors about Softline
Nikolay PryanishnikovPresident of Microsoft in Russia:“Softline is one of Microsoft’s largest partners. The company plays a very active role in business development, sales, marketing, creating solution centres and developing various regions of Russia. We also actively cooperate in social projects, such as in education.”
Aliona RezvanovaDirector of the Partner Relations Department, Symantec in Russia and the CIS:“Symantec and Softline have now been in partnership for more than 15 years. Softline has a high status in our partnership programme and for many years has been among the top three companies in terms of the sale of Symantec solutions in Russia and the CIS. Softline is one our most active and creative partners and it offers new and exciting opportunities for the promotion of IT solutions.”
Alexander VasilenkoHead of the VMware Office in Russia and the CIS:Softline is our oldest partner. Our first product, VMware Workstation, went on sale at Softline even before we became widely known in Russia, which we are certainly grateful for. Every year Softline is among our top three partners, it has the highest status and competences which enables the company to carry out projects of any complexity and for companies of any size.”
Softline 2011FY. Top 15 vendors in terms of turnover
Microsoft
Kaspersky
Oracle
Citrix
Autodesk
Adobe
VMware
MathWorks
Symantec
HP
IBM
ABBYY
ESET
Acronis
Veeam
Microsoft
Softline received its first Microsoft status in 1995 Since 2005 it has been a stable Gold partner of the
corporation 2011FY: Softline made a turnover of $161 mln for Microsoft Softline is the absolute leader in EA/EAS supplies
Softline Services 2011FY: Areas of Business
Virtualization
СAD and GIS
Microsoft solutions
Business consulting: ERP, CRM, SAM, ITAM
Cloud and SaaS
Training and certification
Web Development
Technical support and outsourcing
Hosting
Information Security
Personal Data Protection
Supply of hardware
BI (Business Intelligence)
Virtualization
At the end of 2011 Softline received the highest awards:
Citrix Regional Partner of the Year
VMware Emerging Market Partner of the Year – the first and only in Russia!
Best WYSE Partner 2011 and WYSE Premier Partner status!
Our clients:
> 8 years of experience> 250 projects> 1500 clients
Information Security
At the end of 2011:
Softline was recognized as the best Symantec partner in small business in the EMEA region
Partner of the year in implementing projects based on Symantec Endpoint Protection and Backup Exec
GOLD status with Trend Micro Softline is among the Top 10 largest companies in Russia in the field of information
protection (CNews rating); Softline is a member of the Association for Information Protection and the
Association for Banking Information Security Standards More than 60 certified specialists including BSI ISMS Lead Auditor and CISA Full set of FSB and FSTEC of Russia licenses Widest range of “secure” vendors:
Softline: Сloud & SaaS & IaaS
Google Apps services for business
Softline is among the 20 top partners of Google worldwide It is the only Google Enterprise Reseller in Russia Our Google clients:
Unique IaaS platform (SCloud) launched on HP, IBM, Cisco equipment. Reliable hosting from a reliable provider only at Softline!
We can put the following in a cloud for you: test environments, Help Desk systems, 1C, file servers, corporate portals, corporate mail, CRM, collaborative and communications tools.
CAD/GIS Softline joined the Platinum Club of Autodesk partners = the club for
the best of the best Autodesk partners
Softline received an Autodesk award for the highest growth in sales in Russia and the CIS
We carry out projects for: CAD standards, electronic archiving, engineering document flow, implementation of PDM systems, visualization and design, cost estimates, integration of CAD and GIS etc.
Widest range of CAD/GIS vendors:
SAM&ITAM – technology for the efficient management of IT assets
SAM&ITAM minimize risks:
Financial – you invest rationally in hardware and software, avoid duplicates and unnecessary expenses, maintain the correct accounts.
Legal – your company is “clean” in the eyes of the government, clients and partners. Technical – you protect your IT infrastructure from unproductive or malicious
applications and make full use of your right to technical support and updates.
SAM&ITAM = rational investments in IT infrastructure!Softline is the winner in Microsoft’s international tender for partner
solutions in the category for SAM service providers!
SAM technology is already in use at:
Sale and implementation of SAP solutions
Full range of services for the implementation and support of SAP from one of the largest SAP suppliers for SMBs in Russia and the CIS
More than 80 projects over 8 years
Turnkey implementation in 3-4 months
Line of solutions: SAP Business Objects, SAP Business All-in-One, standard industry solutions based on the SAP ERP, Golden Sign platform
Our status: SAP Gold Partner
Our clients:
Microsoft-based solutions
Project areas: Implementation and support of collaborative
web systems (portals, websites, document flow) Implementation of client management
systems Implementation of communications systems Creation of a private cloud Implementation of IT management systems Implementation of project management
systems Migration of infrastructure to a public cloud
Softline Training Centre
More than 2000 authorized courses in different fields of IT 32 representative offices and 18 Testing Centres in Russia and the CIS International certificates and more than 50,000 IT specialists trained Exclusive areas of authorized training:
Business training in sales, management, financial management, project management.
Top 6 vendors:
Technical Support and Outsourcing
Central online technical support service for Russia, CIS and abroad:
Support via the Internet (HelpDesk system), by telephone or email Full coverage of all time zones Open 24х7 More than 100 engineers with the highest status and many years of experience More than 100 vendors supported
Our clients:
Basic supportALL Softline clients receive free technical support for issues regarding basic functionality, initial
installation and software activation
Web Development
Development of portals, corporate websites and eCommerce systems:
10 years of experience in web development More than 50 Internet projects developed and continuously
supported Development offices in Novosibirsk, Orenburg, Taganrog.
Workforce of more than 100 employees providing a complete cycle of development
Clients: Kaspersky Lab, OPORA RUSSIA, Skolkovo Foundation, the Housing and Utilities Reform Fund and others
Softline, marginal financial results FY2011, $ mln
Margin Against FY2010 TOTAL 111 134%
Russia, sale of software and services 72.9 135%CIS 12.5 126%Abroad 1.5 86%
Other businesses, including:Training Centre
SAP DepartmentInnovative projects
AflexActive
etc.
7.92.25.32.41.3
5
131%138%149%141%188%
Softline, turnover financial results FY2011, $ mln
Turnover Against FY2010 TOTAL 601 132%
Russia, sale of software and services 474.2 136%CIS 49.9 110%Abroad 7.1 48%
Other businesses, including:Training Centre
SAP DepartmentInnovative projects
AflexActive
etc.
7.93.3
42.86.81.37.7
131%120.7%
130%161%194%
Main IT trends
Main long-term trends: Cloud Mobility Consumerization of corporate systems =
introduction of an increasingly large number of user devices (smartphones, tablets) into the corporate IT system
Paradigm shift in IT: In the USA – more than 75% of SMBs use all IT
infrastructure from the Cloud The volume of sales of PCs and laptops is less than
smartphones and tablets Soon the computer will no longer be the main tool
to access information
Tasks we set ourselves
To increase business by 40% over 3 years.
To ensure business profitability at the level of 5% of turnover by 2014
This is possible and feasible!
Main areas of development and growth points Development of EPG business Development of regional business Sale of software Development of services Development of expertise in certain areas of hardware Development of complex projects = Software + Hardware
+ Services
Development plans 2012-2014FY
Plans $ mln 2011 2012 2013 2014
Turnover $601 $840 $1134 $1474Margin, including $111 $176 $261 $369
Software $94 $141 $196 $258Services $17 $35 $65 $111
% of margin against turnover
19% 21%23%
25%Share of software in
the margin85% 80%
75%70%
Share of services in the margin 15% 20% 25% 30%
EBITDA % 3% 3.6% 4.5% 5.0%EBITDA $ $18 $30 $51 $73.7
Co-brand:
Softline electronic distribution combined 3 areas:
1. Softline online store (http://store.softline.ru)Segment: SMB (less than 150 PCs), all over RussiaQuick cost calculationSpecialist consultationsFree technical support
2. Allsoft online store (http://allsoft.ru)Segment: SOHO, Russia and CISInstant electronic deliveryMore than 25 payment methodsOnline service 24x7
3. Software by subscription (http://isp.allsoft.ru) Segment: subscribers of ISPsPayment for orders by any convenient method in the provider’s system
Co-brand:
Leading distributor of the widest range of software in Russia and the CIS.
Partner network of more than 6000 companies Turnover in 2011FY – $95.6 mln Top 10 vendors
Microsoft
Kaspersky
Oracle
Autodesk
ESET
Adobe
HP
Acronis
Dr.Web
MathWorks
Co-brand:
Distributed at:
Turnover in 2011FY – $ 6.7 mln
Company specialisation – development and recruitment of new vendors on an exclusive basis for the Russian and CIS markets.
Co-brand:
ActiveCloud by Softline – hosting and cloud solutions provider for SMBs
CloudServer – facilities rental service and creation of an external cloud in 5 minutes
1С hosting – deployment of financial and accounting packages in the cloud
Rental of applications – Microsoft Exchange, Open-Xchange, Megaplan etc.
Rental of software licenses – Microsoft, 1C, Symantec Backup Exec and others
Data centres in Russia, CIS and Europe. Full automation of access to cloud services.
Our clients:
Co-brand: DeskWork – corporate portal
DeskWork – packaged software developed by Softline Corporate portal with quick installation (1 day) based on SharePoint
Foundation (MS license not required) or SharePoint Server
More than 650 clients We are the absolute leaders! among packaged
portals on the Microsoft platform
New DeskWork version 6 in July: Licenses “up to 250 users” and “unlimited” Increase in price in accordance with the market (big income for you) Installation works (remote) will be included in the price
Three additional products: Video conferences (development of our existing module) Graphic builder of business processes (new, similar to Nintex) Task and project management system (new, similar to Megaplan)
Co-brand: Mirapolis – line of products to automate business processes for personnel management
Recruitment of personnel – automation of recruiting processes Organisation of distance learning Testing – automatic testing for any number of staff Organisation of webinars, web conferences, online
presentations, online training and all types of online meetings Personnel evaluation – automation of personnel appraisal
procedures Portal – online resource for information storage and
management and internal corporate communication Knowledge base – storage of any electronic materials Mailings – effective communication with clients Surveys – online service to conduct any kind of survey
Co-brand: Copiny
Copiny – service to carry out technical support, receive feedback and organise Internet communities.
Advantages: Organisation of centralised technical support open 24x7 immediately
for all company Internet resources Receipt and systematization of feedback, collection of reviews and
suggestions Formation of a loyal community of clients.
Our clients:
Co-brand: Tekmi
Tekmi.ru – joint venture project between Softline and RBC, cloud solution to organise communication without costs for equipment and servicing as part of a combined communications concept.
Office in any location! No telephone exchanges or servers! All communication in one interface! Quick start and dynamic growth for your business!
First client – Alfa Capital
Co-brand: Magazinga – unique online sales tool
Joint project between the Softline Venture Partners foundation (www.softlinevp.com) and the Ecwid platform (www.ecwid.ru)
Magazinga offers a free design tool for online stores and product displays in order to organise sales or demonstrate services on social networks
With Magazinga you can manage sales simultaneously on different Internet platforms: on your own website, in social networks, auctions, message boards and blogs
Magazinga is an advertising agency specialising in the promotion of products on social networks. Further information: http://magazinga.com
Co-brand: Nimble (CloudGate)
Cloud product developed at Softline – SSO (Single Sign On) –platform with facilities for integration, management and billing of all SaaS services used by the client.
Single user access to all SaaS applications Single platform to manage all SaaS applications Single platform to calculate the cost of use and payment for all
SaaS applications of the company Cloud service Platform open to modification and customization Flexible usage model: as a private cloud, a public cloud or a
hybrid model
Softline Investment Fund
Size of fund:
$20 mln
Volume of investmentin one project: from $100,000
to $1 mln
Start
December
2008
We invest in projects at the early stages
of development:
From the idea to the start of growth
Focus of the fund:
Cloud services
eCommerce
Corporate software for small and medium-sized businesses.
Projects in the field of mobile applicationsProjects:
5 reasons why Softline
Reliability and professionalism• 19 years on the market, turnover of $601 mln, range of
software of more than 3000 manufacturers
Single point to resolve all customer IT issues• Cloud & SaaS, projects for virtualization, information security,
CAD&GIS, Microsoft-based solutions, graphics, technical and legal support, ERP&CRM, software asset management, web development, training and certification.
Softline is always nearby and speaks your native language• The company has representative offices in 23 countries and 65
cities in Russia, the CIS and abroad.
The competence and expertise of Softline is recognised by clients, vendors and independent sources
• Top positions in the ratings of CNews Analytics, Expert PA, CRN/RE, @ASTERA.
Softline is trusted by the leading market players• Gazprom OJSC, LUKOIL OJSC, UC RUSAL, MMC Norilsk Nickel
OJSC, Aeroflot – Russian Airlines OJSC, Baltika Breweries OJSC, Beeline Company Group, MegaFon OJSC, MTS OJSC, Rostelecom OJSC, NESTLE RUSSIA LLC, Wimm-Bill-Dann Foods OJSC, British American Tobacco, Coca-Cola, Samsung Electronics, Siemens, VTB24 Bank, Alfa Bank, Rosbank JSCB and many others.
Don’t be afraid to grow!
Welcome to the world of Softline!
Questions ))
Igor BorovikovChairman of the Board of [email protected]
