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Contents
Executive Summary 1
The clients 1
The Team 1
Services Offered: 2
Products Portfolio 2
Front Office Solution: 2
Middle Office Solution: 2
Back Office Operations: 3
Data Value and Client Communication: 3
Core Products: 3
Data Warehouse Manager 3
Asset Manager for investor 4
Market Analysis 5
Challenges: 6
Revenue Streams: 7
Growth in Recent Years: 7
Market Growth in America: 8

Executive Summary
The competitiveness in the finance sector is one that has become saturated with competition as well.
The use of technology and technology-based solutions has also seen a rise in the financial sector to be
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precise. Sim Corp established in 1971 is listed as a company which provides state of art tech solutions
for investment management to the investment managers. Headquartered in Copenhagen, Denmark,
listed on NASDAQ Copenhagen Sim Corp has a clientele which comprises of over 190 of the world’s
largest asset managers.

The company has accumulated clientele with various challenges and has provided tailor made
technology solutions. Serving a multi-industry clientele Sim Corp. The core-product Sim Corp Dimension
is a portfolio management software that allows investment managers to sit back and manage
investment strategies across diverse financial portfolios, funds, and market mandates. The current
financial technology market is one that is highly lucrative and continues to grow.

The clients
Sim Corp are a trusted partner to the largest buy-side asset managers with more than 16,000 active
daily users and over USD 20 trillion managed on SimCorp Dimension. More than 190 of the world’s most
successful investment managers currently run SimCorp Dimension.

“In a relatively short period of time, SimCorp has helped to completely transform our front office and
fund platforms, successfully replacing our legacy systems with a far superior and automated platform,
across front to back.”

-Erik Kaland, COO of Storebrand Asset Management

The Team
The CEO of Sim Corp Klaus Holse has a background coming from companies such as Microsoft and
Oracle. The long term vision of Holse and the strategic result oriented approach by Holse has led Sim
Corp to stand the grounds it stands on today. Other on-board contributors were inclusive of Michael
Rosenvold who got on board in 2018 worked previously on Project Management Consultancy as well
which has been immensely fitting seeming the nature of Sim Corp. Peter Schutze who took his place as
the new chairman in 2018 and was Former CEO of Nordea Bank Danmark A/S and member of Group
Executive Management in Nordea AB. The long-term vision-oriented approach of Schutze is likely to aid
in the growth plan moving forward positively. Holding the position of vice chairman for the past six years
it is highly likely that the strategy of Schulze would positively contribute. The strategic insight from a
board with a mix of such a team with an adequate background will lead the growth plan to expand
faster than predicted.

Services Offered:
A system that optimizes and provides multi-asset class support across the investment value chain.
Allowing the clients to sit back and let the automated system take the wheel on their investment
operations. The product portfolio of the company includes three frivolous options tailored for growth.
These products are designed with a simple yet indelible initiative to be flexible and adaptable, so that
every software fixes in as a tailor-made solution to the client. Sim Corp provides solution that go far
beyond technological automation but rather works to provide tools that aid in the decision making for
the investors as well, having real time data the investment managers have revived operational agility.
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In this era of technological warping, integrated systems automate processes for the clients that provides
a competitive edge in an already competitive market.

Automation and successful integration of a system is not an overnight completion. But Sim Corp comes
with a strategy that allows the clients to start today and scale tomorrow. A core features of the product
portfolio includes solutions that allow the clients to automate effective immediate and fit their
requirements of today at first instance and scale gradually.

Products Portfolio
SimCorp Dimension®
The core system, provides multi-asset class support across the investment value chain, and approx. USD
20 trillion is managed on this system.

SimCorp Coric®
The award-winning solution for client communications and reporting automation.

SimCorp Sofia
The market-leading integrated investment management solution for the Italian insurance market

Front Office Solution:

The front office without automation and exposed to the likely to approach quick wave of trading data
volume growth by 60% and the onset of increased regulations would categorically take a blow. The front
office solution by Sim Corp which makes up about 1.4% of the financial technology market boons the
client’s front office to perform alpha without flinching.

London Interbank Offered Rate (LIBOR) sets the benchmark for entirety of the financial sector products.
Therefore, having a built In IBOR system as IBOR transaction impacts the entirety of the front to back
office information flows is an added feature of the product.

Automated front office work flows, Risk, performance, and accounting analytics, Broad asset and
instruments coverage including alternative investments are some of the added features of the product.

Middle Office Solution:

Having a real time overview and data inflow of the goals and targets being met plays a key role in
satisfying the stake holders and clients. Assessing the impact of processed investments, real time
information flow to the front office, updated data on the exposure of firm, performance measures ,
tracks and goals are some of the features provided.

Analysis and actuating to predict risks is a major attractive factor as well. Therefore, Sim Corp comes
with the state-of-the-art automation for its clients to have enhanced real time views and expand to
emerging markets while juggling a reduction in IT costs through automated systems, all at the same
time.

Back Office Operations:

Back Office Operations are primarily those that stem the greatest operational costs and operational risks
(following industrial regulations). An integrated system therefore frees from the shackles of increased
cost and regulation compliance allowing the clients to entrust the system to take care of the nitty-gritty.
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The labor intensive manual operations that require operational cost increment is automated in the Back
Office Solution. The gradual scalability which is in line with the the industrial standard is a prominent
feature of the product, accounting and tax frameworks are also offered

Data Value and Client Communication:

Transparency in the organization through real time data reporting ensures a trust buildup for the clients
internally and externally. Sim Corps integrated system. Transporting the data without disruption and
adjournment for the purpose of pure reporting and analysis plays a key role in client satisfaction.

Regulatory compliance and optimal client communication that entails impeccable trust and ensures the
deliverance of accurate and real time data is the idea kept in the design of the product.

Core Products:
Client Communications Manager
Effective Client Communication comprising of timely reports with operational efficiency and no
additional costs leaves an impact on the clients and constructs a sense of positive value towards the
service, this inherently is a unique selling proposition for any service. SimCorp’s award-winning client
communications management solution is the all in one answer to ease the way towards effective
communication. This product is an automated client reporting system that updates the client regarding
the product in real time.

Consistent client communication and ultimate transparency in the processes can play a critical role in
maintaining long term client base. SimCorp’s client communication solution ensures to put such a
system in place that allows tried and tested successful strategies that automates your entire end-to-end
client report process. Being an immensely flexible product, it can be a stand-alone product in place as
well as be used in combination with SimCorp Coric Web Reporter.

Data Warehouse Manager

This product ensures that the data from discordant resources is gathered under one digital roof, mined
to be sieved into usable format, which would then enable the usage of the data I a timely manner for
regular reporting purposes. The data sorting is not only efficient, flexible and highly automated but also
immensely time preserving.

Asset Manager for investor

The asset management software helps you efficiently and confidently manage investment strategies
across diverse financial portfolios, funds, and market mandates. The portfolio management solution
includes:

● Comprehensive asset coverage

● Automated workflows

● Scalable processes
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Partner capital is one o the largest investors of Sim Corp. SimCorp Dimension provides all the investment
accounting solutions and supports the middle and back office processing requirements of Partners
Capital. Additional functional modules can be easily implemented without the necessity of installing
another database. In the future, Partners Capital expects to extend the use of this seamless processing
based, investment management solution to also support other areas of its business such as portfolio
management and compliance. Therefore, the best proposition of services for a collateral of $10,000 in
Partner Investment Capital which would allow asset allocation decisions. The platform would give on-
demand access to portfolio calculations across your asset classes so they can streamline and optimize
the portfolio

Market Analysis
The market share of Sim Corp marks at 15% as of now which renders it as the market leader in portfolio
management software. Its clientele ranges from financial investment firms to banks. Its system as
mentioned before is one that allows its clients mainly the investors to monitor, asses and analyze for the
purpose of decision making or risk analysis and aims for an effective client communication portal
generation. These systems once in place are constantly update which allows the clients of Sim Corp to
not only invest effectively and strategically but also have a real time reporting system in place

Portfolio management market is one that is difficult to penetrate however once a healthy client base is
in place the growth is stable and cash inflows. A long-term client relationship is inherently the key to
success in this market. These relationships are not instantly established but span out over a period of
time. The clients can take copious amount of times in the decision process however once in place these
relationships tend to span out with stability. Therefore, allowing for a flourishing business model to be in
place.

Having an employee base of around 1500 out of which 600 software developers headed by Georg
Hetrodt look over, develop, implement and upgrade the core product Sim Corp Dimension. This core
product inherently provides an investment manager with all the necessary elements of portfolio
management. However, the customers initially buy the entire modules however with the passage of
time Sim Corp aims to gradually sell the other parts of the system as well. This is a strategy of the model
Sim Corp follows for maintaining its clientele. The other product Coric which handles and automates the
relative internal processes for its client companies is also looked over which aids to automate and set up
menial tasks such as internal meetings, investor meetings, or sales meetings.

Another magnetically attracting reason for Sim Corps client to stick is the notion that sim corps already
integrated systems in place can not effectively comply if competitor’s module are installed instead of
Sim Corp’s. The product of Sim Corps are tailored made for its client in collaboration with its clients, it
acts on the idea that if a customer were to largely rely on Sim Corps system for the most part in contrast
to the installation of the competitors system, the likelihood of effective operation increases.

The market for portfolio management is one that has an estimated potential of 1300 clients and Sim
Corp successfully has 190 of them. The client base of Sim Corp consists of companies such as Wells Fargo
and Company, CA Pension Plan Investment Board, Manulife Financial Corp, Intrasoft Technologies Ltd.
According to the data by BLS capital there has been 20 new contracts in the market. Sim Corp being an
inherent market leader has managed to grab 12 new contracts in 2016, 8 new contracts in 2017 and 10
new contracts in 2018. It has been visible that the company by offering a wide portfolio of products
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tailored to the client needs has witnessed that over time if not the increase in no. of contracts has taken
place but the order inflow has increased overtime.

Sim Corp has a global market and though the number of its client base in America is relatively low, the
potential client share is the highest.

Challenges:
A challenge observed by the company can be the instance that the customers instead of using sim corps
Portfolio Management System, resort to using the in house built legacy software. The potential
customer market pose this threat greatly. Especially after the imposition of the new regulations, the
occurrence of this remains to be a source of future repercussions as the asset managers would be
relatively constricted.

Another issue to be highlighted for Sim Corp can be the inherent fact that there has been a
consolidation among the competitors. By the consolidation of the competitors it may seem as counter
positive for Sim Corp. However, on careful analysis we can declare the evident fact that a consolidation
would result in an Increase In the profit pool. Sim Corp has an attractive product portfolio with a wide
range of products and an even greater development budget.

It can also be highlighted that the sales processes of this particular market is one that is lengthy process.
Therefore, establishing a customer base is a time-consuming process. The client companies generally
approval from the upper level management for an initial transaction which costs as much as this. In
addition to that implementation of the system is also a time consuming process , one that can span out
over a period of time, workflow assessment which includes ensuring that the system is well integrated
and the work flow is efficient, employee training is also a crucial element as it is crucial to ensure the
fact that the clients clearly understand the functionality of the product, and other factors that need to
taken into consideration and evaluated thoroughly before a system is purchased and implemented.

The selling strategy by Sim Corp over the years however has changed significantly, specifically the design
of the selling contract. The initial selling contract had the structure of the initial upfront payment to be
done at the start, however the updated contract design allows the customers to pay over a period of
time. This then allows the contract to be signed without the approval of upper level management in
some cases. This to a certain extent allows the contract period to proceed without much delay. This
though reduces the contract period but lessens the annual payment inflow for Sim Corp. This
subscription based method however had strategic importance as it allows the selling contract period of
7 to 8 to be a source of spanned out revenue inflow. This allows a client based to get on board quickly
with the purchase of Sim Corp’s product.

The shift towards a new contract however has changed the dynamics of its volatility in the stock market.
It has become more difficult to asses the value of Sim Corp long term. Moreover the shift has also led to
there being an inherent shift in the financial statements and the contract transactions spanned out over
a period of time has also added to there being difficulty in assessing the financial figures of the company
as oppose to the assessment conducted before the shift in the strategy.
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Revenue Streams:
The revenue of Sim Corp is derived majorly from two streams. The initial revenue stream generated by
the initial or additional licenses specifically a major chunk of the revenue is derived from the customers
who have been customers at the start of the year as well. The second stream of revenue comes from
the already licensed users present on the system. Upgrades or the implementation of further modules
also becomes a source of additional revenue streams, Sim Corp inherently sub-contracts consutants to
the companies for the installation of the modules

The development in the sale of additional licences was disappointing in 2018, as there was an organic
decrease of 10 percent compared to a growth rate of 35 percent in 2017. In total, the received order
flow of SimCorp lived fully up to our expectations

It is worthy to note that in the year 2018 there was an inherent decrease of 10 percent in the growth
rate due to the decrease in the sales of additional licenses as compared to that of 2017 when the rate
was recorded to be 35%.

The orders however peaked in2018 as it reached an estimate of a nine-figure revenue which was a first
for Sim Corp being 100 million as shown in the fig.1.0.

This was alignment with the company’s long-term goal of having a double-digit revenue which was
about 10% greater than the prior year and hence giving room for an increase in operating margins as
well. The operating margin which was said to be 27 percent in 2018 is also expected to increase
considerably in the following years as well.

Growth in Recent Years:

The sim corps operational margin as compared to that of its competitors is relatively lower although this
should be highlighted that there exists room for the operational margins to be atleast 30 percent which
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as of now should be highlighted that Sim Corp is giving a return of an estimate of 100 % return on
investment. This connotates the notion that the company inherently has an evident potential to grow
and expand with room for increase In marginal revenues as well.

The Italian Insurance company Generali Insurance in 2017 become the largest customer Sim Corp had
signed at the time being. Being a large company, a significant number of consultants had been working
at Generali Insurance to implement the Sim Corp Dimension. This has been a procedure expanding from
a time span of 2017-18. This then also contributed to the growth of the consultancy services. However,
in the consequent years the consultancy service growth has not seen a greater growth in comparison

The consultancy service is also a significant source of revenue inflow for the company. It is worthy to
highlight the notion that the demand for the consultancy service is greatest in the areas where such
customers are present that have outsourced its management entirely or in parts to Sim Corp are
present. It can also be highlighted that these consultancy services than look over the processes of
handling the implementation of the module and ensuring the workflow. It is inherently also obvious that
this revenue stream would inherently not be as thickly flowing when compared to that from the
additional license gain. However, this is a significant contribution to the overall revenue regardless.

Market Growth in America:

As highlighted before Sim Corp has the smallest market share in America where as it is simultaneously
the largest market for potential customers as well. It has customers in Scandinavia and Norther Europe
which holds a major market share of its customers. However, it is also crucial to highlight that Sim Corp
has only a 6 percent of the American Market share. This shifted in the year 2018 which was immensely
impeccable where a 5 out of 10 orders placed were from the clients in America. And the growth of
American customers has also seen ian increase in the last three years as well. It has been noted that an
increase of an estimate of half of the new customers signed to Sim Corp were also from America.

Sim Corp has created an impeccable Product Range through an investment in the software development
and if the American market share is to inherently increase than it has a high possibility of growth
occurrence due to the remarkable and strong product range which has been designed and developed by
Sim Corp.

Sim Corp continues to gradually expand and this can be attributed to its increment in the market
dynamics understanding and knowledge or the inherent factor that as the number of clients grow there
will also be an observed increase in the number of references. The American market has seen an
increase of about 38% percent. This is an outstanding increase however it is also crucial to highlight that
there still exists a huge market potential that can be tapped in the American markets. It can also be
observed that since 2016 the number of American clients has increase significantly. It is also worthy to
highlight the notion that James Corgan who resumed his role as county manager in 2016 has also
significantly contributed to the increase in the American market share.

This can be stated that Sim Corp has no previous debt where a it does have cash holdings of about 83
million. The revenue of Sim Corp has been an estimate of382.6 m and a 34.4 m in dividends, where as a
portion of the cash inflow has also been contributed towards buying back the shares. This then creates a
room for applause for Sim Corp as there is a high future possibility that they will again do a buy back its
shares in 2019.
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The growth strategy of Sim Corp therefore is largely reliant on investing in development. It has been
analyzed that Sim Corp invests an estimate of 17 percent of its revenue on the development. This
benefits the company in long run and this has been observed evidently through the increase In its
American market share as it has brilliantly offered a remarkable product range with modules that more
or less compel the clients to continue to be in-contract with Sim Corp as its modules operate best
without an interference from the competitor module in the system, moreover its consultancy service
also significantly contributes towards not only the revenue stream addition but also to the portrayal of a
fuller range of services offered.

Considering the notion that the sales contract takes a considerate period of time to intiate therefore a
24 month growth plan can thus be strategized as followed:

a) Continuing the steady stream of investment in the development. Allowing to add further of an
attractive factor in the product portfolio.
b) Expansion of the potential market in the America shall also be trajected.
c) The double digit revenue goal falls under the umbrella of the long term goal, however ensuring
a trimester monitoring to ensure the expansion takes place in that direction.
d) Consultancy services after the additional licensing of American clients can also face an
incremental shift therefore its development shall also be prioritized.

Therefore , it can then be stated that if the company meets its growth targets as predicted then these
investments would evidently have an ROI.A threat for the company which was the customer preference
to opt for their in-house software could also be evaded as evident from the forthcoming increase in the
regulatory requirements on the asset manager and the asset owners as well as the increase in
complexity encouraging and propelling the customers to not opt for their in house built legacy
softwares.