S k a n d i n a v i s k D a t a C e n t e r A / S. I n b r i e f

Transcription

1 S k a n d i n a v i s k D a t a C e n t e r A / S I n b r i e f

2 O u r v i s i o n SDC (Skandinavisk Data Center) the preferred choice within the financial IT sector in the Nordic region for customers and staff members. 2

3 T H E S D C G R O U P Skandinavisk Data Center A/S DataKomm A/S SDC: 51% Ejendomsselskabet Borupvang 1 A/S SDC: 100% Nordisk Finans IT P/S SDC: 50% BEC: 50% O u r m i s s i o n SDC is a bank-owned full-service IT provider and partner for small and medium-sized financial enterprises in the Nordic region. On the basis of economies of scale and shared solutions, SDC ensures deliverables at low unit costs and a high level of quality to ensure supply security. Via professional cooperation and regular deliveries, SDC underpins the business development and competitiveness of its customers. 3

4 T h e S D C G r o u p Skandinavisk Data Center A/S, SDC, is one of the leading IT providers and partners for the financial sector in the economies of scale, SDC aspires to enhance and consolidate its position as a joint Nordic IT centre for small and medium-sized banks. Nordic region. Nordisk Finans IT SDC originates from Sparekassernes Datacentral, established in 1963 as a member association for Danish savings banks for the purpose of developing and operating financial IT solutions on a shared basis. Nordisk Finans IT (NFIT) was established in 2009 by SDC and Bankernes EDB Central (BEC), the purposes being to setting up a joint operating agreement for SDC and BEC with JN Data A/S and to developing a shared system, Calypso, for risk and derivatives management, etc. Since the beginning of this millennium, SDC has stepped up its field of activity to comprise the entire Nordic region, and, today, SDC s customers and owners count both Danish, Norwegian, Swedish and Faroese banks. The joint operating agreement was concluded in 2010, and the Calypso system was implemented as planned in Aiming to strengthen customer competitiveness through Nordisk Finans IT is scheduled for winding up in

5 T h e S D C G r o u p DataKomm A/S In 2010, SDC acquired the controlling interest, 51%, in Danish software business DataKomm A/S. DataKomm, a partner of SDC s for many years, is charged with developing a wealth of key components in SDC s portal systems for banks and their self-service customers. Ejendomsselskabet Borupvang 1 A/S The company owns, leases and manages SDC s property in Ballerup. Share of ownership Skandinavisk Data Center A/S: Number og banks/ bankgroups: Largest shareholders: Terra-Gruppen AS Spar Nord Bank A/S Skandinavisk Data Center A/S Cerdo Bankpartner AB Sparekassen Kronjylland Lån & Spar Bank A/S SPARBANK A/S Share of ownership: above 10% 2>10% 1>2% under 1% 19,6% 19,3% 8,9% 4,9% 4,7% 4,6% 4,2% 5

6 F I N A N C E SDC intends to underpin its customers competitiveness by providing business-supporting services at the lowest possible price through economies of scale, market position and strategic partnerships. The financial gains brought about by the community surrounding SDC will enable SDC banks to SDC s equity was DKK 845 million at the end of the year, down from DKK 825 million at the end of As a consequence of new legislation, treasury shares are no longer included in equity. Comparative figures for 2010 have been adjusted accordingly. maintain a low level of IT costs. At 31 December 2011, price/book value stood at Despite a turbulent year in the Danish financial sector, compared to a year earlier. the SDC Group maintained and even slightly increased revenue from DKK 1,323 million in 2010 to DKK 1,327 million in Net profit for the year stands at DKK 20 million. This is in Based on continued innovation and efficiency improvements, SDC managed again in 2011 to boost its deliverables to the banking sector without a corresponding increase in payments from the banks to SDC. keeping with SDC s business model, according to which SDC s activities are not intended to generate profit, but merely to cover costs. This is the third consecutive year that SDC increases its IT deliverables per paid Danish krone, thereby contributing 6

7 F i n a n c e to enhancing the competitiveness of the SDC banks. The accumulated value for the period Services and payment Trend in SDC s services for banks and banks payments to SDC (Beginning of 2008 = index 100) corresponds to non-charged additional deliverables of about DKK 180 million a year. At end-2012, the accumulated value is set to have risen to about DKK 250 million a year Systems operations Systems development Net retail price index, Denmark Banks payments to SDC

8 F i n a n c e SDC revenue ; ordinary activities DKKm The price policy pursued by SDC rests on three 900 fundamental principles: Services are provided at cost, the price of a service reflecting SDC s cost of production All banks pay the same price for a service regardless of size, consumption, etc. SDC revenue 2010 by services Customized assignments 5% Advisory services and consultancy 7% All material services are priced, prices being open and transparent. Membership fees 3% Print 5% WAN 2% Licenses 2% Administration Banks platform 7% Systems development - individual 10% Systems operation 27% These principles ensure low, competitive prices and enable banks affiliated to SDC to manage their IT costs through selection and deselection of services. Systems development - joint 32% 8

9 F i n a n c e DKKm Revenue Shareholder customers 1, , , Other customers Total revenue 1, , , , ,115.3 Costs and expenses Direct production costs Other external costs Staff costs Total costs and expenses 1, , , , Capitalisation of development projects Depreciations Transferred forward to/from provisions Profit/loss before financial items and tax Financial items Tax Minority shareholders share of result Net profit/loss Capitalised systems development Equity * Share capital Price/book value * Balance sheet total * 1, , , ,107.2 Equity interest (%) * Average number of employees (full-time equivalent) * As a consequence of new legislation, treasury shares are no longer included in equity. Comparative figures for 2010 have been adjusted accordingly. 9

10 C U S T O M E R S, O W N E R S, M A R K E T SDC s clientele and group of owners includes small and medium-sized banks in Denmark, Norway, Sweden and The Faroe Islands. FO: 4 banks NO: 82 banks SE: 2 banks DK: 49 banks From 1963 From 2005 From 2007 From

11 C u s t o m e r s, o w n e r s, m a r k e t SDC s market is made up of companies within the financial sector in Scandinavia. Using existing trans-nordic customers as basis, our ambition is to develop SDC into a jointlyowned Nordic IT centre for small and medium-sized banks. Danmark SDC s customers in the Danish market comprise 49 small and medium-sized banks and savings banks. The Danish SDC-banks command a total share of the Norwegian market of about 14% measured by deposits.revenue generated by The financial gains offered by economies of scale and joint Danish banks accounts for 66% of total SDC revenue. IT solutions form the foundation of this development. The financial sector is one of the most digitalised industries today, with IT becoming an increasingly central parameter to a bank s competitiveness. The bank s possibilities of meeting customer demands and statutory requirements and of developing business are conditional upon the necessary IT support being available at a reasonable The mergers and amalgamations seen in the financial sector in 2011 resulted in a rise in the number of banks affiliated to SDC. The former Finansbanken was taken over by Sparekassen Lolland and converted to SDC in Early this year, BankNordik transferred its customers and accounts from the former Amagerbanken to price. Sweden The Faraoe Islands* 8% 4% Denmark SDC. BankNordik acquired Amagerbanken in Norway 22% 66% SDC revenue 2011 by group of customers * excl. subsidiary companies in Denmark 11

12 C u s t o m e r s, o w n e r s, m a r k e t DKKm Norway SDC s Norwegian customers number 82 banks united under the umbrella of Norwegian banking group Terra-Gruppen AS. The banks of Terra-Gruppen AS command a total share of the Norwegian market of about 8% measured Decline: 104 DKKm Increase: DKKm Net: +15 DKKm by deposits. Revenue generated by Norwegian customers Decline and increase in SDC revenue as a result of the decline and increase in number of banks during the period Growth despite financial crisis The financial crisis that fed through in 2007 increased banks focus on IT costs. Consequently, SDC managed to win several new customers during the period. Revenue generated by the new customers more than outweighs the revenue lost on SDC banks that have discontinued operations or are in the process of being accounts for 22% of total SDC revenue. Sweden SDC s group of Swedish customers comprises Sparbanken Öresund and Sparbanken Syd. The two savings banks are affiliated to SDC via the Swedish IT company Cerdo Bankpartner AB. The Swedish SDC banks command a share of about 1% of the Swedish market measured by deposits. Revenue generated by Swedish banks accounts for about 8% of total SDC revenue. wound up as a result of the financial crisis. 12

13 C u s t o m e r s, o w n e r s, m a r k e t Share og revenue Banks share of SDC revenue The Faroe Islands In keeping with the strategy on Nordic expansion, SDC concluded an agreement with the Faroese banks and savings banks and their subsidiary banks and branches in Denmark on convesrion to SDC in The Faroese SDC banks command a share of 100% of the market in the Faroe Islands. Revenue generated by the Faroese banks accounts Number of banks: Share of revenue: 10>12% 5>10% 2>5% 1>2% under 1% for about 4% of total SDC revenue. Key figures for SDC s customers Banks in the Norwegian Terra-Gruppen are affiliated to SDC by individuel agreement. In total the Terra Banks holds a share of 22% of SDC revenue. Number of banks: 137 Active customers in SDC banks Number of branches: 715 Distribution by country Number of employees: Number of customer accounts and stock accounts: Number of customers: ,6 mio. 2,9 mio. Norway Sweden 36% The Faraoe Islands* 9% 5% 50% Denmark * excl. subsidiary companies in Denmark 13

14 S Y S T E M S D E V E L O P M E N T 14

15 S y s t e m s d e v e l o p m e n t Business needs for systems are to a wide extent identical across the individual SDC banks including across Nordic Systems development at SDC underpins not only the dayto-day business of banks, but also their future business development. borders. The same applies to the statutory and sector requirements applicable to the financial sector. Against this background, multi-year perspectives are Hence, the majority of SDC systems can be developed as shared systems for use by many or all banks. This ensures banks access to a comprehensive system portfolio at the lowest possible cost per bank. Nearly 80% of SDC systems development is trans-nordic used for drawing up SDC development plans. In close cooperation with customers SDC prepares roadmaps setting out business and technology courses and goals for SDC activities several years into the future. Specific development projects resulting from this are assessed and prioritised in relation to the needs of the total customer group. or country-specific joint development. Normally, joint developments are designed for the largest banks, as the requirements of small banks are typically shared by the large banks. The community surrounding SDC and the application of joint system solutions do not imply commercial standardisation. On the contrary. The flexibility of the SDC system 15

16 S y s t e m s d e v e l o p m e n t Coordinating architect banks portfolio and architecture offers many options for individual profiling of the individual bank. The flexible and On the basis of a wish to simplify cooperation between SDC and the banks, SDC has started using coordinating architect banks in the joint systems development. The concept means that the IT development undertaken in a given business area is embedded in one bank only: the coordinating architect bank. component-based structure of the systems with parameter and flow control and product, interest rate and fee workshop, etc. ensures that each individual bank can model functions and data as well as their presentation in a way that matches the individual needs and profile of the bank. Being the chief architect in its area, the coordinating architect bank must ensure the development of shared solutions that generate high business benefits and can be used by all SDC banks. Moreover, an open and standardised system structure means that the banks themselves can add vendor systems and own development to the SDC systems and systems development. This presents the individual banks and groups of banks with unique possibilities of The concept brings IT and business closer together customising an IT platform that has been optimally tailored to their business needs and relations and which and ensures faster time-to-market in systems development. 16

17 S y s t e m s d e v e l o p m e n t SDC systems development 2011 combines the advantages of economies of scale and shared solutions and individual freedom of choice. Part of the SDC business model is that solutions developed by a bank through SDC can be resold as a shared solution to other SDCbanks. Banks use of SDC development capacity by type: Trans-Nordic joint development 49% (Development for use in all Nordic banks) Country-specific joint development 28% (Development for use in all banks in one country only) Individual development 23% (Special development by order of one bank or a group of banks in one country only or across countries) Average payment per bank per hour of development in SDC: DKK: 5,66 DKK: 15,82-387,50 Depending on the number of banks Systems development 2011 Country-specifik 28% Trans-Nordic Individual 23% 49% 17

18 C e n t r a l o p e r a t i o n s 18

19 C e n t r a l o p e r a t i o n s transaction must be held at a minimum. Thanks to economies of scale and optimisation of system capacity utilisation, SDC has in recent years been able to reduce the transaction unit price by more than 10% annually. This has meant that the banks, since 2008, have been able to increase their consumption by around 40%, virtually without having to pay more. When conducting their daily business, banks depend completely on systems and data being available as and when needed. Hence, stable IT operations are a key focus area to SDC. We constantly monitor operations to ensure that they meet the quality goals established in concert with our customers. Key elements are a high level of uptime and short response times in systems and databases. Against a wish to reduce operations prices even further, The volume of transactions handled by SDC systems continues to grow. On average, SDC receives million online transactions every day, or just under 200 transactions every second 24 hours a day. SDC will be transferring its operations from IBM to JN Data in Once fully completed, the transfer to JN Data will lower the cost of operations by 20-25%, or about DKK 70 million a year, the main explanation being that SDC joins JN Data as partner and is thus able to buy Given such large transaction volumes, the price per operations services at cost. 19

20 C e n t r a l o p e r a t i o n s Innovation Under the auspices of a pioneering project on comprehensive financial systems, SDC is in the process of transferring the operation of its centralised banking system, the Core System, from a mainframe computer to the Microsoft.Net server platform. The transfer is undertaken in close cooperation With JN Data, SDC also has an operations partner strictly focusing on the financial sector. Apart from Danske Bank and Nordea, JN Data handles IT operations for all Danish banks. The large volume and the homogeneous customer base pave the way for rational operations at low unit costs. with Microsoft under the Microsoft Mission Critical programme. The switch will be completed in three steps, i.e. transfer of online traffic, transfer of batch runs and transfer of database. The first two steps have been completed. The last step, transfer of database from DB2 to SQL, will be completed in The transfer to.net will lower the costs of operating the transferred systems by about one third, or around DKK 100 million a year. 20

21 H u m a n r e s o u r c e s a n d o r g a n i s a t i o n SDC employs a staff of about 600, 420 being permanent staff/hr executive board staff and 180 being external consultants working for SDC innovation development Systems base it-security for short or long periods. The intensive use of external consultants reflects a deliberate policy ensuring SDC a high degree of flexibility and ample opportunities for ad- Customers justing capacity to current needs in the market. At year- focus quality project special- end 2011, SDC had 37 associated systems developers in India under the auspices of US-based software house, Fidelity. adm. compliance In keeping with the steady growth in SDC s customer base and activities seen in recent years, the number of permanent staff has gradually increased. The majority of new employees join SDC with several years of occupational experience and thus take up their new jobs with significant experience and professional ballast. 21

22 H u m a n r e s o u r c e s a n d o r g a n i s a t i o n SDC employees in figures Age distribution 20 to 24 years 25 to 29 years 30 to 34 years 35 to 39 years 40 to 44 years 45 to 49 years 50 to 54 years 55 to 59 years Being a knowledge-intensive business with systems developed in-house as its core service, SDC considers it very important to be able to retain experienced staff. The average seniority of SDC staff is 10.1 years. Staff turnover came to 8.9% in 2011 on a par with that of the Danish financial sector in general. 60 and over average SDC regards itself as part of the financial sector. In the Lenght of service Under 1 year 1 to 5 years 6 to 10 years 11 to 15 years 16 to 20 years ongoing supplementary training of our staff, we thus consider it important to offer insight into and create an understanding of the financial world in which banks do business. More than 60 employees completed the basic course in the financial markets in to 25 years 26 and over average Management: Women 39%, men 61% SDC overall: Women 33%, men 67% 22

23 H u m a n r e s o u r c e s a n d o r g a n i s a t i o n SDC organisation as at 1/ Systems Audit Board of Directors Executive Board Customer Systems Support Development and Sales and Operations SDC management Executive Board: Erik Jakobsen, CEO Helene Ekknud, Director Customer Support Commercial Support - Customer Consultants - Individual Tasks - Hotline - New Customers Quotations - Innovation IT Security Special Projects Systems Development - Core System - Portal Projects - Basic System Projects System Base - Operations, Technology and Architecture - System Maintenance Focus Areas - Management Information - Data Warehouse - Accounts Testing and Quality Staff / HR Compliance Adm. & Service Other members of management: Henrik Søby, Vice President Claus Flinck, Vice President Michael Taulborg Jensen, Customer Manager Annette Vibeke Lotz, Quality Manager Robert Elgaard, Innovation and Technology Manager Peter Rønlev, Development Manager John Vammen, Development Manager Allan Christiansen, Development Manager Klaus Laforce, Development Manager Esben Henrichsen, Development Manager Per Jylling, Development Manager Claus Bach, Area Manager Hans Henrik Holm, Area Manager Jørn Knudsen, System Audit Director Lis Linde, HR Director 23

24 B o a r d s o f D i r e c t o r s a n d E x e c u t i v e M a n a g e m e n t s Skandinavisk Data Center A/S Nordisk Finans IT P/S Board: John Lundsgaard, Bank Director Spar Nord Bank A/S (Chairman) John Christiansen, CEO Lån & Spar Bank A/S (Vice Chairman) Stein Ole Larsen, CEO Terra-Gruppen AS (Vice Chairman) Pål Ola K. Alfvegren, Chief Operating Officer Cerdo Bankpartner AB Vagn Hansen, CEO Sparekassen Vendsyssel Klaus Skjødt, Chief Executive Sparekassen Kronjylland Janus Petersen, CEO BankNordik Kim R. Hansen, Systems Developer Skandinavisk Data Center A/S Jan Olsen, Systems Developer Skandinavisk Data Center A/S Gertrud Rahbek, Systems Developer Skandinavisk Data Center A/S Bettina Lau, Consultant Skandinavisk Data Center A/S Board: John Lundsgaard, Bank Director Spar Nord Bank A/S (Chairman) Gert Jonassen, Chief Executive Arbejdernes Landsbank A/S (Vice Chairman) Frank Vang-Jensen, CEO Handelsbanken A/S Stein Ole Larsen, CEO Terra-Gruppen AS Kurt Nørrisgaard, Director Bankernes EDB Central Erik Jakobsen, CEO Skandinavisk Data Center A/S (observer) Management: Gitte Blak Rasmussen, acting CEO Management: Erik Jakobsen, CEO Helene Ekknud, Director 24

25 B o a r d s o f D i r e c t o r s a n d E x e c u t i v e M a n a g e m e n t s DataKomm A/S Ejendomsselskabet Borupvang 1 A/S Board: Erik Jakobsen, CEO Skandinavisk Data Center A/S (Chairman) John Lundsgaard, Bank DirectorSpar Nord Bank A/S (Vice Chairman) Kim Gröne Jensen, CEO DataKomm A/S Peter Colsted, Senior Director Incubation & Category EMEA, Microsoft Lars Nordenlund Friis, CEO Instrate Board: Helene Ekknud, Director Skandinavisk Data Center A/S (Chairman) Erik Jakobsen, CEO Skandinavisk Data Center A/S Management: Erik Jakobsen, CEO Management: Kim Gröne Jensen, CEO 25

26 Skandinavisk Data Center A/S Vat No Borupvang 1A, DK 2750 Ballerup Tel Fax