ANNUAL REPORT Hansab Group
2018
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Annual Report 2018
Table of Contents About Us � ������������������������������������������������������������������������������������������������������������������������������������������3
Hansab Group Aigar Urva / Founder & CEO Hansab 2.0 �������������������������������������������������������������������������������������������������������������������������������������� 11 Jaak Õunpuu / CFO Financial Results of Hansab Group 2018 � ������������������������������������������������������������������������� 13 Consolidated Balance Sheet ���������������������������������������������������������������������������� 17 Consolidated Income Statement � ������������������������������������������������������������������� 18 Markko Purge / Sales Manager Automation and Self-Service Leading the Way ������������������������������������������������������������ 19 Priit Ivanov / Innovation Manager Developing Hansab of Tomorrow �������������������������������������������������������������������������������������� 23 Algo Puusepp / Service & Quality Manager Modern Technology to Better Manage Services ����������������������������������������������������������� 26 Sigita Babarskaite / CMO New Visual Identity � ������������������������������������������������������������������������������������������������������������������ 29 Reigo Rosin / IT Manager Improving IT Inf rastructure and Security ����������������������������������������������������������������������� 31
Hansab Companies Janno Kallikorm / Managing Director / Hansab Estonia Happy Anniversary, Estonia! � ������������������������������������������������������������������������������������������������� 33 John Törn / Country Manager / Hansab Finland Exploring New Business Areas � ������������������������������������������������������������������������������������������� 36 Deniss Rubens / Managing Director / Hansab Latvia Quarter of a Century ���������������������������������������������������������������������������������������������������������������� 38 Darius Žekonis / Managing Director / Hansab Lithuania Strong Position in Strategic Sectors � ���������������������������������������������������������������������������������� 41 Alar Alumaa / Managing Director / Ellore Strategic Focus � ��������������������������������������������������������������������������������������������������������������������������44 Tarmo Koreinik / Managing Director / Moya Expanding Services and Products � ������������������������������������������������������������������������������������ 47
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Introduction
About Us Hansab celebrates 28 years of business with a record consolidated turnover € 27.2 million and a team of over 300 professionals. Our goal is to be the leading provider of complete technology solutions for customers. Thanks to the comprehensive product portfolio, which includes automation, security, cash handling, and finance systems, we offer the best-integrated solutions and products to make our customers’ businesses more effective and secure, their employees’ everyday life more comfortable, and lift their customer experience to a new level.
Hansab Group OÜ Est. 2005 in Tallinn, Estonia 1991
1993
1994
Hansab AS
Hansab SIA
Hansab UAB
Tallinn, Estonia
Riga, Latvia
Vilnius, Lithuania
Tartu, Pärnu, Jõhvi, Kuressaare
Rezekne, Liepaja, Valmiera, Daugavpils
Kaunas, Klaipėda, Šiauliai, Panevėžys and a representative in Belarus.
2014
Hansab OY Helsinki, Finland
2006
2007
2018
Moya OÜ
Ellore OÜ
Tallinn, Estonia
Tallinn, Estonia
Hansab IT Solutions OÜ Tallinn, Estonia
2009
2010
Hansab Kinnisvara OÜ
Hansab Turtas UAB
Tallinn, Estonia
Tallinn, Estonia
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Annual Report 2018
Employees by company Service 50%
including project based
Sales and Project Department 39%
Hansab Estonia Hansab Lithuania
88 75
Moya
Employees by
62
Hansab Latvia
Activity Field
52
Hansab Group
10
Hansab IT Solutions Administration 11%
One of our main strengths is creating complete solutions. They consist of consultation, software development and integration, hardware sales, project management, and after-sales services. Among our long-term customers, we have leading organisations operating in retail, transportation, finance, state, and education sectors. Our home territory covers Estonia, Latvia, Lithuania, Finland, and Belarus and consists of ten companies: Hansab Group OÜ, Hansab AS, Hansab SIA, Hansab UAB, Hansab OY, Ellore OÜ, Moya OÜ, Hansab Kinnisvara OÜ, and Hansab Turtas UAB, and starting 2018, Hansab IT Solutions OÜ. Our solutions and services portfolio is unique. An official channel partner to more
Ellore
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than 100 suppliers, we sell, install and service solutions from the leading manufacturers such as NCR, Ingenico, Qmatic, Bosch, Sony, Samsung, Glory Global Solutions and more. Partnerships with the world’s best-known technology companies provide us with the advantage of having the newest and most innovative technology. Quality is a watchword for Hansab businesses, and the companies aim at the highest level, acknowledged consistently with numerous quality management awards. Services and solutions, offered by Hansab, comply with ISO 9001, ISO 14001, ISO 20000 and ISO 27001 standards.
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Management Members of Hansab Group
Aigar Urva Founder and CEO Hansab Group
Jaak Ă•unpuu CFO Hansab Group
Priit Ivanov Algo Puusepp Service & Quality Manager Innovation Manager Hansab Group Hansab Group
Markko Purge Sales Manager Hansab Group
Sigita Babarskaite CMO Hansab Group
Reigo Rosin Ruta Urva Internal Audit Manager IT Manager Hansab Group Hansab Group
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Annual Report 2018
Janno Kallikorm Managing Director Hansab Estonia
Deniss Rubens Managing Director Hansab Latvia
Darius Žekonis Managing Director Hansab Lithuania
John TĂśrn Country Manager Hansab Finland
Alar Alumaa Managing Director Ellore
Tarmo Koreinik Managing Director Moya
Kristjan Haavik Managing Director Hansab IT Solutions
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Brand Timeline 1990s 1991
2000s Hansab AS established in Tallinn Estonia 5 employees
1992
Hansab starts selling security and cash handling equipment to the financial sector
1993
Establishment of Hansab service department. Product portfolio expands to customer management systems. The first service agreement is signed.
2001
ISO 9001 quality standard acquired
2003
1600m2 headquarters constructed in Tallinn Product portfolio joins POS terminal sales and service
2005
Hansab Group OÜ founded to unify and coordinate operations across the Baltics
2006
A daughter company Moya OÜ founded to operate reverse vending machines
Hansab SIA founded in Riga, Latvia 1994
Hansab UAB founded in Vilnius, Lithuania
1995
The first financial crisis in the Baltic financial sector
1998
Second financial crisis in the Baltic financial sector after collapse of the Russian economy 43 employees Turnover reaches € 300 000
1999
Sales and service of NCR ATMs begins Period of rapid growth in the company
Turnover rises to € 15 million 117 employees 2007
Ellore OÜ established by Hansab and Voicecom to develop and integrate software with equipment sold by Hansab (specifically for payment systems) Turnover reaches € 18.5 million euros and net profit of € 1.2 million, resulting in the best financial results in the history of the company 147 employees 2500m2 Lithuanian headquarters are built in Vilnius
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2008
Annual Report 2018
Global economic crisis begins. Hansab introduces new strategy with the emphasis on key account management and additionally to finance – focus on public and retail sectors Shift from the product to the solution sales. New products in security field – electronic security, EAS and access control
2009
Hansab TOB Ukraine founded to manage operations in Ukraine.
2012
Hansab begins active operations in Belarus
2013
Hansab TOB Ukraine sold Turnover 17.4 million euros Employees: 257
2014
Hansab OY founded in Finland Turnover € 20.5 million
2015
25th Anniversary 321 employees Turnover € 21.2 million
Hansab Kinnisvara OÜ founded in Estonia
2016
Turnover € 26.1 million
Turnover declines to € 11.3 million
2017
305 employees
135 employees
Turnover € 25.6 million Entering robotics field with the humanoid robot Pepper
2010s 2010
Hansab Turtas UAB founded in Vilnius
2011
ISO 20 000 certificate acquired Project department founded to manage complex projects and to divide responsibilities between the departments. Turnover recovers to pre-crisis level € 17.5 million 168 employees Hansab starts service export
2018
Started Estonian eID documents production Record turnover € 27.5 million Record profit EBIDTA € 1.4 million
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Our vision is to be the leading partner in innovative technology solutions. Our mission is to make your life easier and secure. We are open and reliable We build partnerships We work creatively and ethically
Annual Report 2018
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Hansab Group
Hansab 2.0
Aigar Urva Founder and CEO Hansab Group
The year 2018 was successful for Hansab Group. We finished the year with record revenue of 27.2 million euros and a substantial profit (EBITA close to 1.4 million euros). All of the Group companies finished the year with positive results. Hansab AS (Estonia) delivered the best results. The company completed the year with a record of twelve million euros in revenue and half a million euros profit. As well, a notable achievement by Hansab Estonia last year was investment and construction of digital documents production facilities and starting production in December for the Estonian government. The new activity field will impact the future results of Hansab AS.
Our Lithuanian company showed improvement, finishing the year with 200,000 euros in profit, followed by the Latvian company Hansab SIA and recycling management company Moya, which demonstrated a stable development during the last year. Ellore, our software development and integration company, successfully implemented a new software platform Tetra and various important integration projects. Last year f inancial results stayed under expectations, primarily due investments in our software development capabilities, which have not yet yielded a return on investment. Our strategic goal is to create more added value services. In particular, focusing on software development and IT services.
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Annual Report 2018
To implement the aforementioned strategy, we began project OWL in Hansab Group, to align all operations (sales, services, finance, human resources and marketing) to work towards the goal. On the 14th of February, on the 28th anniversary, we launched Hansab 2.0 - our new visual identity, which supports our business direction. We will continue with our investment in IT solutions and our product development. At the end of last year, we established a new company - Hansab IT solutions for software development. For some time, Ellore will continue with the payment systems and integrations and support.
This year, we are planning to launch several new own products and solutions and begin their export. I am confident that all of these efforts will provide a positive impact on the Group’s revenue and profitability. As part of the internal communication strategy, we refreshed our values so they would correspond with our current activities, vision and mission. The updated Hansab values are openness, reliability, partnerships, creativity and ethics. We are striving to display these values in all of our everyday activities, including communication with clients, colleagues and other stakeholders, as they are the building block of our organisation.
Our strategic goal is to create more added value services. In particular, focusing on software development and IT services. Aigar Urva
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Hansab Group
Financial Results of Hansab Group 2018 Jaak Õunpuu CFO Hansab Group
In 2018, economic growth continued the 8th year in the row in all Baltic countries. The Latvian economy grew faster compared to its neighbours. According to preliminary figures, last year’s economic growth was 3.9%, 4.8%, and 3.4% in Estonia, Latvia, and Lithuania, respectively. Last year the inflation slowed down slightly in Baltics, it was 3.4% in Estonia, 2.6% in Latvia and 2.5% in Lithuania. In 2018 consolidated turnover was the best in the company’s history, reached to € 27.2 million (€ 25.6 million in 2017). The consolidated profit before taxes increased to € 0.9 million (€ 0.5 million in 2017).
The biggest growth in 2018 were in the transportation sector, followed by the public sector. Compared to the previous year decrease of revenues was in financial and industry sector. The group showed continuous growth in total services revenues, increasing 2% accounting for a third of total turnover. The biggest improvement of sales turnover was in Estonian and Lithuanian subsidiaries Hansab AS and Hansab UAB (both 13%). The highest turnover was achieved by Hansab AS € 12.1 million. Sales in 2018 was less compared to year before in Latvia (-18%) and Finland (-8%).
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Annual Report 2018
The largest portion, 44%, of the consolidated turnover in 2018 was generated by Hansab AS, while the share generated from Hansab UAB and Hansab SIA amounted to 33% and 16%, correspondingly, with other group companies accounting for 7%. In 2018, Hansab AS generated the highest net profit, € 498 thousand. Followed by Hansab UAB € 144 thousand, Moya OÜ € 64 thousand, Hansab SIA € 53 thousand, Ellore OÜ € 26 thousand and Hansab Oy € 1 thousand. All group companies earned profit in 2018.
Investments The largest investments of 2018 included the purchases of equipment and other investments into a new business segment of Hansab AS – production of ID cards (at the end of the year), implementation of new ERP (Microsoft Dynamics 365) in all group companies and development of Hansab Group new products Entringo (parking and transport management) and Apear (room and resource booking). Continued investment into the equipment for full-service rentals by Hansab AS, reverse vending machines and service stations by
We believe that Hansab Group’s financial policy, flexible cost base, new business fields and investments have created a basis for good growth in 2019 and in the future. Jaak Õunpuu
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Hansab Group Turnover by Companies
Hansab Estonia
44%
Hansab Lithuania Hansab Latvia Other
33% 16% 7%
Moya OÜ. The total amount of investment in 2018 increased to € 1 080 thousand and depreciation expenses increased by 2% to € 497 thousand. Annual Results In 2018 Hansab Group earned the best EBITDA in the history € 1,395 thousand (€ 1,016 in 2017). Group net profit reached to € 739 thousand (€ 378 in 2017). The volume of consolidated assets increased to € 13.5 million (€ 10.8 million in 2017) based on increased cash, sales receivables, inventories and fixed assets. Group’s financial liabilities decreased and share of equity by the end of 2018 was 35% of the balance sheet. The consolidated return on equity (ROE) was over 16%, and the return on assets (ROA) over 6%.
Planning for 2019 and Beyond We believe that Hansab Group’s financial policy, flexible cost base, new business fields and investments have created a basis for good growth in 2019 and in the future. Economic experts forecast stable growth around 3% for the Baltic region in 2019, and the Finnish economy should grow 1-2% in the coming years. The inflation will be on level of 2-3% in Baltics. The main risks are still uncertainty related to global economies which may influence Baltic export related sectors.
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Annual Report 2018
Service
Sales
25000
20000
15000
10000
5000
‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 Consolidated turnover of sales and service in thousands of euros
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Hansab Group
Consolidated Balance Sheet in thousands of euros
ASSETS 31/12/2018 31/12/2017
LIABILITIES AND EQUITY 31/12/2018 31/12/2017
Current assets
Current liabilities
Cash 782 1 290
Loans and borrowings 358
Trade receivables 2 848 4 077
Trade and other payables 5 459
927
Other receivables 582 364
3 052 Accrued expenses 496 634
Prepayments 128 217
Tax liabilities
1 701 2 275
910 1 074 Total current liabilities 5 385 7 523
Total current assets 6 041 8 223
Non-current liabilities
Inventories
Loans and borrowings 1 018 1 250 Non-current assets Long-term financial investments 303
348
Property, plant and equipment 4 610
4 299
Intangible assets
96 364
Total non-current assets 5 277
Total non-current liabilities 1 250
1 018 TOTAL LIABILITIES 6 403 8 773 EQUITY
4 743
Share capital 3 3
TOTAL ASSETS 10 783 13 499
Reserves 3 3 Non-controlling interest 487 636 Retained earnings 3 562 3 455 Currency translation differences 2
2 325 627 TOTAL EQUITY 4 381 4 726 Net profit for the period
TOTAL LIABILITIES AND EQUITY 10 783 13 499
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Annual Report 2018
Consolidated Income Statement in thousands of euros
2017 2018 25 579 Revenue 27 197 76 Other operating income 58 Business expenses -16 173 Goods, materials, services -16 860 -2 400 Operating expenses -2 476 -5 992 Labour expenses -6 482 -486 Depreciation -497 -74 Other expenses -41 530 Operating profit 898 -46 Finance costs -40 Profit before income tax 858
484
-106 Income tax -119 378 Net profit for the financial year 739 Equity holders of the parent company 627 Non-controlling interest
325
53 112
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Hansab Group
Automation and Self-Service Leading the Way Markko Purge Sales Manager Hansab Group
In 2018, the group sales of goods and installations turnover grew by 8% and were in total 21.4 million euros. It is record sales turnover results in Hansab Group history. Another remarkable achievement was that for the first year ever, the transportation sector became a leading customer segment, giving 29% of total sales revenue, followed by banking, retail, state - and public sector. Finance and banking products have always had the leading role in our sales revenue, but thanks to the increase of transport, infrastructure and logistics customer investments the entire sector grew by 147% and raised the automation product group as the most significant product group in our portfolio.
As we are working with six different product categories, we are pleased that our customer and product group divisions are now equally distributed giving a sense of security and stability for our company. In the automation product group, we are mostly focusing on self-service solutions, which brings efficiency to our customers. Biggest logistic customers continued to add parcel terminals to their current networks to satisfy the increase of the e-commerce market. Both DPD and Baltic Post will continue to deploy parcel lockers during 2019 and has chosen
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Annual Report 2018
Hansab to their partner. For people are provided with a possibility not only to quickly and comfortably pick the goods purchased in e-shops but also to send deliveries to any address in Europe, what meet with our mission to make life easier. It is fascinating that people in Baltic countries are one of the leaders in the usage of such solutions in Europe. During 2018 we finished second stage Smart Port solution deployment in Port of Tallinn.
For the Port, it means even more efficient use of dock space, faster loading and more efficient use of check-in points. As the system is so unique, we are happy to receive many international requests on it, and hopefully, we can deploy another challenging logistic project somewhere in Europe. In Retail, the Baltic market is approaching maximal shopping densities versus purchasing power per capita. Still, we see the trend of
For the first year ever, the transportation sector became a leading customer segment, giving 29% of total sales revenue. Markko Purge
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opening a few new shopping centres or extensions of existing ones. Retail sector income was not only influenced by the number of new stores opening but as well as due to investment in retail eff iciency solutions. We are continuing to focus on retail cash management automatization, electronic shelf label solutions and retail software solutions which will bring more efficiency and value to our retail customers. From last year we established Digital Signage and Multimedia as a separate product group. Strategic partnership with the leading manufactures of its industry helped us to win many deals during 2018 and increased the Digital Signage sales revenue by 58%. Primarily we see the growing demand for professional screens, in- and outdoor LED solutions. We have started to work actively with different markets to promote our advanced solutions outside of our home market. First installations will take place in Scandinavian countries, but we search for the possibility to sell even more extensive territories.
15 000
10 000
5 000
‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 Sales Turnover in thousands of euros
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Annual Report 2018
Distribution of Revenue by Product Groups Automation
32%
Finance & Payment
25%
Security
23%
Multimedia
13%
Consumables
4%
Cash Handling
4%
Distribution of Revenue by Strategic Segments Transport
29%
Banking
27%
Retail
20%
State & Public Sector
14%
Resellers
4%
Industry
4%
Other
2%
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Hansab Group
Developing Hansab of Tomorrow Priit Ivanov Innovation Manager Hansab Group
2018 has been the walk in the future – we have set the focus on developing products and solutions that address the need of the market. Hansab has 28 years of experience in challenging the impossible, successfully bringing new standards to the market. The more our markets evolve, the more we have to examine how we can utilise our knowledge and bundle it together with our strategic products and solutions, to add the “cherry on the cake“ for our customers and partners.
We have been systematically analysing our product portfolio and services, looking for things we can improve or change, to give added value to our customers. We have reviewed our business offering and mapped out the elements we missed f rom proposing the complete solution for example, strengthen our capabilities to offer IT infrastructure systems together with the IT solutions we provide are. During the cybersecurity Innovation workshop, we clearly understood, that securing the virtual world is even more critical than the physical world. Supporting Expansion We have historically been present in our countries operating as Hansab. In 2018 we decided to take strategic steps towards building
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Annual Report 2018
up export capabilities – to create the structure inside the organisation, create new roles and procedures and as a vital part – to design and develop products, which are based on our long term experience and in cooperation with our reliable and successful partners. We will be launching separate brands, tied to Hansab but will have a clear focus on specific areas. Developing our Products The most signif icant changes in 2018 were improvements and investments into our capabilities to design, develop and build systems and solutions. It includes designing
hardware and software, prototyping and developing to manufacturing and assembly. As transportation is one of our target sectors, we had a clear vision to develop a management system that would cover the needs of the industry – from parking to guidance, from access control to queue management. We also cannot look away from the evolution of the electric vehicle market which will shape the transportation industry in the upcoming decades. For this, we created a multipurpose platform called Entringo. Entringo is not a specific
The most significant changes in 2018 were improvements and investments into our capabilities to design, develop and build systems and solutions. Priit Ivanov
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product; it is a platform that will gather multiple products and solutions under one brand name. Part of the Hansab ecosystem, Entringo will enable us to focus more on transportation automation and support our export plans. As a separate software based product we launched Apear, a meeting room resource planning and management system combined with interactive screens for offices, conference centers and hotels. Apear gets rid of many pain points related to the management of meeting room bookings. What’s Next? During the last couple of years, we began building Hansab 2.0, with the development of our new products and solutions to be able to provide more added value to our customers, plus allowing easier integration and better services. In 2019, we will continue on the same path, with “innovation” as our watchword.
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Annual Report 2018
Hansab Group
Modern Technology to Better Manage Services Algo Puusepp Service and Quality Manager Hansab Group
The biggest project in 2018 was the introduction of the new ERP in all Hansab Group companies and the integration of the new software with the existing systems. In services, the new software meant significant changes in the management of customers, service contracts, and service orders. Customers’ needs and technologies are in constant change, and it is the reason why we need to develop software solutions for service continuously. The principal reason for switching to the new platform Microsoft Dynamics 365 was the need to use modern technology for managing services.
When implementing the new software we received assurance to our well-functioning management system where all of the processes are defined and documented. Due to that, the implementation processes went smoothly. During the implementation of the software, we improved the administration of maintenance orders in Estonia, Latvia, and Lithuania. We see that our customers will benefit the most from the development. All requests are now handled paperless, which is a critical aspect considered by environmental sustainability. Increasing service efficiency was the second important subject for us in 2018. More and more systems are serviced where devices together with integrated software systems play a critical role. It requires continuous improvement of
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IT competencies. In 2018, we hired to our customer service team mainly people with IT background, which increases the capability to offer more remote solving services. An example is servicing of queue management systems, where approximately 40% of cases, necessary changes, and improvements are resolved remotely. This way we can guarantee a faster and more cost efficient for our customers. Increasingly, we use remote solving with such solutions as digital signage, parcel kiosks, and more. One of the priorities for coming years is transferring more equipment to remote solving. Also, we continue to develop new ERP and take advantage of the additional features associated.
Amount of maintenance orders in 2018 remained at the same level as last year, reaching 77 thousand a year. Larger support contracts are related to the maintenance of ATMs, payment terminals and parcel terminals. One of our main goals is to provide high quality, fast and efficient services. In quality we are in constant improvement, we updated many procedures and documentation last year. In spring 2019, all four audit standards were a subject of the re-certification process, and all Hansab Group companies were successfully recertified according to ISO 9001, ISO 14001, ISO 27001 and ISO 20000.
Customers’ needs and technologies are in constant change, and it is the reason why we need to develop software solutions for service continuously. Algo Puusepp
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Annual Report 2018
9000 8000 7000 6000 5000 4000 3000 2000 1000
‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 Service Turnover in thousands of euros
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Hansab Group
New Visual Identity
Sigita Babarskaite CMO Hansab Group
On the 14th of February 2019, which also marked Hansab´s 28th birthday, we launched a new logo and brand identity. It is a notable change for Hansab and not only for the visual part which goes back to more than 20 years, but because the new identity now completes the new business strategy moving from hardware to software development and integrated solutions provider. The changing marked a significant milestone for Hansab.
We treated the changes in our new visual identity as brand evolution, not revolution. It was imperative to preserve the best elements of the logo while bringing our brand to the 21st century. The new logo and visual identity are simple, clean and modern. One of the core symbols in the new logo is an arrow - it symbolises flow, progress and pipelines. The night blue colour reflects trust and efficiency and a mindset of technology organisation, where hardware meets software. The updated visual identity uses a simpler colour palette and, we believe, is more refined, but still contains the spirit of the original. In 2018, we carried out company-wide research to determine how our employees perceive us as an employer and to identify aspects, which creates a culture in Hansab, where professionals want to come and keep on
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Annual Report 2018
working. People are our biggest asset, and we tried to understand what they value in working in Hansab. As a result, we have segmented branding messages to different departments, starting trainees, technicians, IT specialists and finally with the management positions. This way we will ensure the best talent for the organisation. Last year, as well as during the previous year, we continued building high-quality videobased case studies. In total, we created 13 video clips, covering transport and logistics (The SmartPort Video), retail (Kaubamaja Group), then as well as solutions based, bringing attention to multimedia projects in the Baltics, featuring the most prominent and exciting case studies. To watch these videos, our Youtube channel always has the latest information. In the coming
year, we will continue working on the video production, especially in cooperation with our partners, where we can co-create mutually valuable content for our customers. Customer events and seminars are crucial to deliver the latest trends and technology information to our customers. In 2018, across all Hansab organisations, we hosted 32 seminars, intending to cover each strategic sector. During the rest of 2019, you’ll see all the other visuals around Hansab aligning around this new direction. We’re still Hansab, but more consistent and, we hope, more instantly recognisable and modern. In addition, we will work to implement employer branding strategy and support our own solutions. All of the changes together will help us build Hansab 2.0 together, with a customer-centric approach and more brand consistency.
We launched a new logo and brand identity. It is a notable change for Hansab and not only for the visual part which goes back to more than 20 years, but because the new identity now completes the new business strategy moving from hardware to software development and integrated solutions provider. Sigita Babarskaite
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Hansab Group
Improving IT Infrastructure and Security Reigo Rosin IT Manager Hansab Group
In 2018 we were running different IT related activities focusing on improving our IT infrastructure and security. Updating our backup system to a new server and file storage has given us a faster and more secure backup system. Besides, we were running different hardware upgrades and network security projects. Since the amount of data is continuously increasing, I believe it is essential to keep both hardware and software up to date to support the business needs in the best possible way.
We also started to use a new ticketing system for registration service requests. Switching from OTRS to a new Jira service desk ticketing system has given us better system maintenance and improved our quality of ticket resolving and providing feedback to our customers. All the projects finished in 2018 have a significant impact on our IT infrastructure, making it more stable and secure and helping us to improve the quality of our service.
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Annual Report 2018
2018 we also started a project of personalising Estonian ID cards. The security requirements for personalisation centre are incredibly high and to make sure we meet the prerequisites, we started eIDAS certification process where auditors visited our premises, and we described the system behind the personalisation, processes and workflow. The project has been intense and fruitful. 2019 we will continue focusing even more on security. The first step will be the start of
using encrypted workstations to prevent data leak. Besides, for minimising the impact of significant information security incidents, we are working on a disaster recovery site to have the possibility to switch different systems easily over from one location to another to minimise the impact of the system downtime.
All the projects finished in 2018 have a significant impact on our IT infrastructure, making it more stable and secure and helping us to improve the quality of our service. Reigo Rosin
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Hansab Estonia
Happy Anniversary, Estonia!
Janno Kallikorm Managing Director Hansab Estonia
Estonia, together with our neighbours in Baltics, was celebrating its 100th Anniversary in 2018 – what a significant milestone. Also, Hansab AS was able to produce results worthy of this special occasion. Growing six consecutive years in a row, we once more reached record revenues by exceeding € 12.1 million and increasing by 13% compared to 2017. Profit before taxes was calculated at € 0.56 million, growing by 32%.
The star in the spotlight was our automation field, growing three times compared to 2017 and accounting for nearly 40% of total solution sales. In financial-, security- and multimedia solutions we were able to match the 2017 figures. In our services space, we saw the most significant increase in installation services, accounting for one third of the total services revenue and growing by 10% compared to previous period. Our service level agreements showed a modest decrease, but we were able to increase our revenues in three from four of our strategic customer segments – transport, retail and state institutions, which now account
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Annual Report 2018
for 40% of our total service level agreements revenue, giving us a much more stable and broader agreements’ portfolio. Feedback from our customer satisfaction survey showed continuous trust and satisfaction with our performance and solutions, with a rating of 4.0 (on a 5-point scale). Focus on Logistics In today’s fast-growing society – time is everything! Together with our valued customers and partners, we have been working to offer time savings to people in their daily lives if sometimes only a minute at a time.
In Port of Tallinn, the fifth busiest passenger port in Europe, we managed to finalise the Smart Port Solution in Terminal D, the largest harbour traffic automation project in Europe, and possibly even the whole World. Many thanks to Port of Tallinn for their continuous trust in us, and for offering extra time to millions of passengers passing through their hub. We are also thrilled to be a part of the rapid expansion of parcel kiosk networks by DPD and Omniva, helping to bring the goods closer to everyone’s home in a shorter time. We are making sure that the parcel kiosk downtime is minimal so that all packages will find their destination in due time.
Growing six consecutive years in a row, we once more reached record revenues by exceeding € 12.1 million and increasing by 13% compared to 2017. Janno Kallikorm
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In retail space, Tallinna Kaubamaja Grupp (Estonia’s biggest retailer) partnered up with us to build the most comprehensive, modern and user-friendly digital signage solution in Baltics today, giving their customers a cuttingedge shopping journey across all their stores. New Horizons, High Security In 2018 we established new, high-security facilities, which are compliant with eIDAS and PCI standards, for production and personalisation services of smart cards and documents. Together with our partners IDEMIA and SK ID Solutions, we launched Estonian ID-card, e-Resident cards and Digi-ID card personalisation services for Estonian Government from December 2018. Hansab as a Role Model Our solutions are getting noticed and acknowledged as industry leading. In April, our bollards solution to secure Estonian Parliament building from ram-raid attacks was a nominee in Estonian Security Association’s “Best Security Solution of 2017”.
In November, during yearly Logistics Summit, our Smart Port Solution for Port of Tallinn was a nominee for “Logistic deed of the Year 2018”, a prize handed out for already 17 years. Also, we participated with the Smart Port solution in Smart City EXPO fair in Barcelona in October, as part of Enterprise Estonia, making the first steps towards exporting our in-house solutions globally. Where Next? With our new activity f ields, such as document and smart card personalisation, and continued focus on developing the inhouse solutions we expect the next years to be as interesting, challenging and successful as was 2018. Many thanks to our great customers, partners and all team for the continued trust in what we do – from now on, with the new look. Long-live Hansab 2.0!
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Annual Report 2018
Hansab Finland
Exploring New Business Areas The year 2018 showed a positive result for Hansab Oy, and we are still working hard to strengthen our market share and open-up new business areas on the Finnish market. John TĂśrn Country manager Hansab Finland
Last year we participated in s-commerce & ShopTech Helsinki fair where we got much recognition, to our brand and services and a lot of new valuable contacts on the market. During the two days, more than 4000 guests visited the fair. During 2018 received an opportunity to be first to install turnstiles with ticket readers for entering the cinema. This project was carried out together with Finnkino, which opened the new concept cinema theatre in Itäkeskus, Helsinki. This project was the biggest single
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project during the year 2018. It contained planning and consulting of the system and then implementing and training to the end user. During the year we managed to get in contact with many potential clients and as well get the rollout of Hansab brand to the market in Finland. For 2019 we are continuing our journey to get familiar with the market, and we are expecting the year to bring us some new essential clients and to build the organisation further.
The year 2018 showed a positive result for Hansab Oy, and we are still working hard to strengthen our market share and open-up new business areas on the Finnish market. John Tรถrn
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Annual Report 2018
Hansab Latvia
Quarter of a Century
Deniss Rubens Managing Director Hansab Latvia
Hansab Latvia team reached a remarkable milestone – 25 years of business operations. Only a few companies in Latvia can be proud of operating in the market for a quarter of a century. Together with our partners, we have been providing security, automated and other innovative solutions for almost every customer segment. The company has finished 2018 with €4.5 million in revenue and €53 thousand in profit accordingly.
New Management Team Members Last year brought some changes to our management team. Our project department director Raivis Barkāns accepted a new challenge in Hansab and moved to lead service department. Raivis already had extensive experience in Hansab – seven years and was a perfect fit to continue improving Hansab services. Furthermore, two new members joined Hansab team – Inese Birģele as Human Resources and Quality manager and Arnis Kļaviņš as Sales and Project department director. Rise of Profitability In 2018 we focused our resources on solutions sales with high profitability. Although preceding year brought a decrease in revenue
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of 27%, at the same time, we have managed to increase the gross profit by 4%. Sales of services were stable and brought a minor 3% increase compared to service revenue of 2017. The sales of solutions dropped due to a lowered central Baltic orders of POS terminals and ATMs. We are glad that through increasing the sales of digital signage sales by 250% compared to 2017 results and improved sales of automated solutions we have improved the overall profitability of projects and finished 2018 with almost the same profit as in 2017.
The Sound of Casino Further, higher, longer, louder – this was our exact slogan for our most successful digital signage project in Olympic Casino Latvia in 2018. Seven units of breathtaking 2.5m x 3m indoor LED screens, Ermac controller, directional sound speakers, 98” and 55” professional TV screens and Extron remote control solution – that is the sound of modern-day Casino. It was the first large scale installation project of LED displays in Hansab Latvia, and we are proud of it.
Hansab Latvia team reached a remarkable milestone – 25 years of business operations. Only a few companies in Latvia can be proud of operating in the market for a quarter of a century. Deniss Rubens
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Key Drivers in 2019 We are looking very confident about the year of 2019. Refreshed Hansab brand identity is already bringing new ideas and driving sales of Hansab own solutions. Our new team members are strengthening in-house knowhow, and through that, we see a continuous improvement of our overall service quality and development of even more significant projects in digital signage, retail and transport automation fields. 2019 here we come!
Annual Report 2018
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Hansab Lithuania
Strong Position in Strategic Sectors Darius Žekonis Managing Director Hansab Lithuania
For Hansab Lithuania, last year showed a significant improvement in our company sales revenue of 9.1 million euros, 13% more than in 2017 resulting in â‚Ź144 thousand net profit. The growth in revenue increased due to the good sales results in most of the business segments.
More than 70% of the sales revenue came f rom the three largest segments – transportation, banking, and retail. The transportation sector stayed in the leading position for the second year in the row, reaching 35% of the total sales turnover. Operations in Belarus remained stable with a little growth in revenue in 2018. Our services revenue grew almost 11% which means that sales of SLA and other regular services fulfilled the target by 100%, showing a positive trend for the upcoming years.
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Annual Report 2018
The company has been keeping stable and positive customer feedback (4.2 on a 5-point scale). Employees survey result stated 3.8-points on a 5-point range (2017 – 4.2 on a 5-point scale). Our employees value the company for good communication and cooperation, providing help to each other, and employees are proud to work for Hansab. We have to work on more on enabling employees’ development of competencies and different pieces of training, as well as more feedback to the work they have done. The organisation’s quality management, based on ISO 9001, ISO 14001, ISO 20000 and
ISO 27001 helps run processes smoother while being beneficial for both our customers and employees. High Ambitions In recent years the development of selfservice terminals was particularly active. Baltic Post and Omniva expanded their network, and DPD entered the self-service terminal market, which significantly increased the number of available terminals. In 2018, we implemented a large-scale parking lot project in Vilnius University Hospital Santara Clinics. This year we
For Hansab Lithuania, last year showed a significant improvement in our company sales revenue of 9.1 million euros, 13% more than in 2017 resulting in €144 thousand net profit. Darius Žekonis
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finished a part of this significant project of car guidance systems and payment equipment. It has been the most massive parking project in Lithuania so far. In 2019, further developments and improvements have already planned. At the end of 2018, we successfully launched the Lithuanian Airport advertising screen project. In the retail sector, cooperation with Lithuania’s most prominent shopping centres successfully continued – we managed to install many security solutions in newly opened stores and to reconstruct old ones. We keep growing in the sales of digital signage solutions and successfully implementing way-finding terminals in major supermarkets, such as Panorama, Mega, and RYO. In 2018, we paid a great deal of attention to modern self-service devices that allow automatic cash payments, which would enable the customer to increase their sales. In 2019, the development of these solutions is expected to be even more extensive due to electronic shelf-labels (ESLs). We have also been continuously successful in the banking sector - in the sales of ATM’s and card payment terminals and even the sales of password generators for all banks. Also, we concluded successfully many access control projects in newly opened bank offices.
Stable Growth in the Belarusian Market Last year we closed a significant deal with Sberbank subsidiary in Belarus for customer flow management systems. We are going to equip all bank branches with the Qmatic solution. All together it means we are going to install 43 new systems all over the country. We are grateful for the bank’s trust of us in terms of service as well. So we have agreed that we will cover their service needs all over the country. Now there are 52 systems up and running to give the highest in class services for daily branch service. The second pillar to Belarus operations was cash handling solution. Cash is still in high demand in the country, and we are delivering an intelligent cash deposit system (CDS) machines to the market. Back to Success Hansab UAB has built a solid ground to be continuously successful in following years. The continuous investment in new solutions, already signed agreements for large-scale projects and our well-established team gives the confidence that we can expect the growth of 20% can by reaching more than 10 million EUR turnover in 2019.
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Annual Report 2018
Ellore
Strategic Focus
Alar Alumaa Managing Director Ellore
Ellore positions itself as an integrated software development partner, which sells and integrates solutions while providing support and consultation. The dominant share of the activities involves card payment software distribution, integration services and support. Ellore sales revenue was over 1 million euros growing by 15% compared to 2017. The profit before taxes was 51 thousand euros. The main reasons for the higher income were an almost threefold increase in IT development revenue, and more than 30% increased Software as a Service Sales (SAAS). The systematic extension of our software team lowered the company’s profitability, but it created a solid base to deliver added value for the future.
POS Terminals Solutions Delivery and Integrations Ellore introduced to the Baltic market the new Ingenico TETRA generation card payment terminals, which bring new functionalities to satisfy the most demanding expectations of merchants, retailers, and banks. We carry a consumer-centric approach to vertical markets (including hospitality, retail, vending, banks & acquirers, and transportation) with payment solutions to cover all points of transactions. Our customers have welcomed the new TETRA terminal range positively. The highquality hardware from Ingenico and secure feature rich Software application f rom
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Voicecom help us maintain and strengthen the leading position of card payment solutions provider in the Baltics. Ellore created Swedbank Smart Terminal solution continued to be a successor by reaching over 7000 items in the Baltic countries and extending the card payment acceptance within micro and small merchants. The contactless migration project, which started at 2016 concentrated to the unattended solutions upgrade their systems to accept Contactless Card Payments. The
project included the change of software in the terminals, consultation of integrators and different software services. There had been over ten new partners who integrated Pos XML in their Electronic cash register system or kiosk solutions including card payment for the new parcel kiosk of Omniva, DPD and self-service sales kiosk for Apollo Cinemas. Ellore has taken care of terminals software release management, remote updates delivery and problem management.
As Hansab Group’s one of the priorities is strengthening the in-house software development capabilities, at the same time to continue growing the POS terminals related business, then to have a clear focus on two different fields the software development department continues as a separate company Hansab IT Solutions OĂœ starting from the 1st of January 2019. Alar Alumaa
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IT Services Ellore took care of Hansab Group IT infrastructure management and services daily basis corporate IT system including business applications, more than 200 servers and overall Hansab Group IT infrastructure. The most critical IT project of 2018 was the Hansab Group migration to new business management software Microsoft Dynamics 365. Ellore had a significant role to prepare the new system implementation, create the required infrastructure and establish everyday support for whole Hansab Group. Ellore also enhanced the corporate inf rastructure monitoring capabilities and implemented the new incident and problem management system. In-house Software Development In 2018, one of Ellore’s goals was to strengthen and increase in-house software development capability. Therefore, we hired additional software engineers, and the software development related processes were reviewed and improved to meet Hansab Group needs. Hansab Group requirements for IT solutions are somewhat unique, which require extensive knowledge of systems integration and operating with multiple different hardware devices and its components. One of the goals was also to set lightweight documentation standards and to document existing software systems to build an internal knowledge base.
Annual Report 2018
Last year, together with Hansab Group, we helped build software for Hansab own solutions including the humanoid robot Pepper software, Apear room-booking system and a smart parking management solution Entringo. As Hansab Group’s one of the priorities is strengthening the in-house software development capabilities, at the same time to continue growing the POS terminals related business, then to have a clear focus on two different fields the software development department continues as a separate company Hansab IT Solutions OÜ starting from the 1st of January 2019. Ellore maintained high employee satisfaction index of 4.3 in the Likert scale. The customer satisfaction index 3.5 shows high expectations of our customers and indicates the need to improve our internal quality and support processes, follow the ITIL principles and to keep track of ISO standards.
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Moya
Expanding Services and Products Tarmo Koreinik Managing Director Moya
Moya aims to provide products, technical solutions, and services that enable recycling to people and companies. The year 2018 was successful for us. The company turnover 1.3 million euros and a profit of 64 thousand euros were all times record. Our network of the empty return points, we managed to collect 32 million packages.
From the second half of the year 2018, we signed the agreement to be the official representative of RVM systems in Estonia. To obtain this, we went through a thorough validation and attestation process. By now, we installed more than ten new RVM-X have. Our cooperation partner RVM Systems is a sustainable company; offering products to support modern recycling technology. As a new direction, we have started offering technology for manufacturers and retailers to collect cardboard and plastic waste. Our partner is Europress Finland, which is one of the most recognised press manufacturers in the field. We will pilot with the first solution in the summer 2019. In addition to the sales
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Annual Report 2018
and renting of equipment, we also offer maintenance of technical equipment. We cooperated actively with the Estonian Waste Management Association. Together, we worked on expanding our partner network through exhibitions and site visits. Considering Moya’s long term strategy our primary goal is to start working with these companies, which develop modern and forward-looking recycling products. We have signed seven contracts and counting. Our customer-centric approach leans towards providing recycling tools and technology for everyone f rom individuals to companies. Hence, we are building an e-commerce platform to accommodate our
growing product portfolio. The webshop’s main aim is to cover the gap in the Estonian market and offer a solution that enables a person, company or institution to acquire a suitable recycling solution. One can buy or rent containers and technical solutions for sorting and reusing the generated packaging waste in our e-shop. The company’s primary goal is to provide people and businesses with products, technical solutions that will allow them to recycle materials easily. In 2019, we focus on developing products, services, and solutions that overall support the circular economy.
As a new direction, we have started offering technology for manufacturers and retailers to collect cardboard and plastic waste. Tarmo Koreinik
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Head Offices and Contacts ESTONIA
FINLAND
Hansab Group OÜ Keevise 11, Tallinn, 11415 +372 6059800 group@hansab.com
Hansab OY Malminkaari 23A 00700 Helsinki, Suomi +358 974 790 219 hansab@hansab.fi
Hansab AS Keevise 11, Tallinn, 11415 +372 6059800 hansab@hansab.ee Other offices: Tartu, Pärnu, Jõhvi, Kuressaare, Kärdla Moya OÜ Allika tee 8, Peetri 75312 + 372 529 0262 info@moya.ee Ellore OÜ Keevise 11, Tallinn, 11415 +372 6059813 info@ellore.ee Hansab IT Solutions OÜ Keevise 11, Tallinn, 11415 +372 6059800 itinfo@hansab.ee Hansab Kinnisvara OÜ Keevise 11 Tallinn, 11415 +372 6059800 group@hansab.com
LATVIA Hansab SIA Piedrujas iela 7, LV-1073, Riga +371 67325550 hansab@hansab.lv Other offices: Daugavpils, Rēzekne, Valmiera, Liepāja LITHUANIA Hansab UAB Savanorių av. 180A, LT-03154, Vilnius +370 5 205 8800 info@hansab.lt Other offices: Kaunas, Klaipėda, Šiauliai, Panevėžys Hansab Turtas UAB Savanorių av. 180A, LT-03154, Vilnius +370 5 205 8800 info@hansab.lt
Annual Report 2018
FINLAND
Helsinki
Jõhvi Tallinn
Kärdla
ESTONIA Tartu
Pärnu
Kuressaare Valmiera
LATVIA
Rēzekne
Riga Daugavpils Liepāja Šiauliai Panevėžys Klaipėda
LITHUANIA Kaunas
BELARUS Vilnius Minsk
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