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1
PROFILE SYSTEMS & SOFTWARE SA
Annual Financial Report
2022
(drafted according to article 4 of l. 3556/2007 and the delegated thereby
implementing decisions of the BoD of the Capital Market Commission)
PROFILE SYSTEMS & SOFTWARE SA
General Commercial Registry (GEMI) No.: 122141660000
NEA SMYRNI ΑΤΤΙCA (SYGROU AVENUE 199)
It is certified that the present Annual Financial Report concerning the financial year 2022
(01.01.2022-31.12.2022), is the one unanimously approved by the Board of Directors of the
Societe Anonyme under the name “PROFILE SYSTEMS & SOFTWARE SA”,
at its meeting of
April 6
ης
2023 and is posted on the internet and legally registered in the General Commercial
Registry (GEMI), electronic address www.profile.gr, where it shall remain at the disposal of
the retail investors for a period of at least ten (10) years from the date of its drafting and
publication.
2
Contents
STATEMENTS OF REPRESENTATIVES OF THE BOARD OF DIRECTORS (PURSUANT TO ARTICLE 4 § 2 OF L.
3556/2007)
................................................................................................................................................................
3
ANNUAL MANAGEMENT REPORT OF THE BOARD OF DIRECTORS FOR THE FINANCIAL YEAR 2022
......................
4
SECTION F
΄
........................................................................................................................................................
24
INDEPENDENT AUDITOR’S REPORT
.......................................................................................................................
100
ANNUAL FINANCIAL STATEMENTS OF THE YEAR 2022
.........................................................................................
107
STATEMENT OF FINANCIAL POSITION
.............................................................................................................
107
STATEMENT OF COMPREHENSIVE INCOME
....................................................................................................
108
STATEMENT OF CHANGES IN EQUITY
.............................................................................................................
109
STATEMENT OF CASH FLOWS
.........................................................................................................................
111
NOTES TO THE FINANCIAL STATEMENTS
...............................................................................................................
112
1. GENERAL INFORMATION ON THE COMPANY AND THE GROUP
.................................................................
112
2. BASIS OF PREPARATION OF THE ANNUAL FINANCIAL STATEMENTS
..........................................................
112
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
..................................................................................
115
4.
Ν
EW STANDARDS, INTERPRETATIONS AND AMENDMENT OF EXISTING STANDARDS
...............................
123
5. FINANCIAL RISK MANAGEMENT
.................................................................................................................
127
6. SEGMENT REPORTING
................................................................................................................................
132
7. DISCONTINUED ACTIVITIES
.........................................................................................................................
134
8. OPERATING INCOME/EXPENSE ANALYSIS
...................................................................................................
134
9. FINANCIAL INCOME/EXPENSE ANALYSIS
.....................................................................................................
135
10. INCOME TAX
..............................................................................................................................................
136
11. EARNINGS PER SHARE
...............................................................................................................................
138
12. TANGIBLE FIXED ASSETS
............................................................................................................................
139
13. GOODWILL
................................................................................................................................................
140
14. INTANGIBLE ASSETS
..................................................................................................................................
141
15. INVESTMENTS IN SUBSIDIARIES
................................................................................................................
143
16. INVENTORIES
.............................................................................................................................................
143
17. TRADE AND OTHER COMMERCIAL RECEIVABLES
......................................................................................
143
18. PREPAYMENTS AND OTHER RECEIVABLES
................................................................................................
144
19. SHORT-TERM INVESTMENTS
.....................................................................................................................
145
20. CASH AND CASH EQUIVALENTS
................................................................................................................
145
21. SHARE CAPITAL AND SHARE PREMIUM
....................................................................................................
146
22. TREASURY SHARES
....................................................................................................................................
147
23. RESERVES
..................................................................................................................................................
147
24. BORROWINGS & OTHER LONG-TERM PAYABLES
......................................................................................
148
25. PROVISION FOR EMPLOYEES’ INDEMNITIES
.............................................................................................
148
26. STOCK OPTION PLAN
.................................................................................................................................
149
27. GOVERNMENT GRANTS
............................................................................................................................
150
28. SUPPLIERS
.................................................................................................................................................
150
29. OTHER PAYABLES
......................................................................................................................................
150
30. TRANSACTIONS WITH RELATED PARTIES
..................................................................................................
151
31. LEASES (IFRS 16)
........................................................................................................................................
152
32. FAIR VALUE MEASUREMENT
.....................................................................................................................
152
33. AUDITORS’ REMUNERATION
.....................................................................................................................
153
34. CONTINGENT LIABILITIES
..........................................................................................................................
153
35. POST BALANCE SHEET EVENTS
..................................................................................................................
154
AVAILABILITY OF FINANCIAL STATEMENTS
...........................................................................................................
155
                                               
 
Annual Financial Statement for the Financial Period from January 1 to December 31,
2022 (Amounts in EUR)
3
STATEMENTS OF REPRESENTATIVES OF THE BOARD OF DIRECTORS (PURSUANT TO ARTICLE 4 § 2 OF
L. 3556/2007)
The below statements, which take place according to article 4 par. 2 of l. 3556/2007, as currently in
force, are made by the representatives of the Company’s Board of Directors, namely the following:
1
Charalambos Stasinopoulos of Panayiotis, resident of Nea Smyrni, 199 Sygrou Ave.,
President of the
Board of Directors
.
2
Spyridon Barbatos of Antonios-Ioannis, resident of Psychiko Attica, 20 P. Hatzikonstanti str.,
Vice
-
President of the Board of Directors
.
3.
Evangelos Angelides of Ioannis, resident of Nea Smyrni, 31 Adramytiou str.,
Μ
anaging Director
.
The below undersigned, in our capacity stated above, according to the definitions of law (article 4 par.
2 [c
΄
] of l. 3556/2007), but also as especially appointed to this end by the Board of Directors of the
Societe Anonyme under the name “PROFILE COMMERCIAL AND INDUSTRIAL INFORMATICS SOCIETE
ANONYME” and the distinctive title “PROFILE SYSTEMS & SOFTWARE S.A.” (Hereinafter called, for short,
Company
” or “
PROFILE
”) at its meeting of April 6, 2023, we hereby declare and certify that to the best
of our knowledge:
(a) The annual financial statements (corporate and consolidated) of the Company of the financial year
2022 (01.01.2022-31.12.2022), which have been prepared according to the current International
Financial Reporting Standards (IFRS), as these have been adopted by the European Union, depict in
a true way the assets and liabilities, the net position and the results of the Company as well as those
of the enterprises which are included in the consolidation, taken as a whole, according to the
provisions of paragraphs 3 to 5 of article 4 of l. 3556/2007 and the delegated thereby implementing
decisions of the Board of Directors of the Capital Market Commission, and
(b) The annual Management Report of the Company’s Board of Directors depicts in a true way the
significant events that took place during the closing financial year 2022 (01.01.2022-31.12.2022),
their influence on the annual financial statements, including the description of the main risks and
uncertainties facing it, the important transactions entered into between the Company and the
persons associated with it (as these are defined in IAS 24), as well as the evolution of activities, the
performance and the position of both the Company and the enterprises included in the consolidation,
taken as a whole and sundry information required according to the stipulations of paragraphs 6 to 8
of article 4 of l. 3556/2007, as well as the delegated thereby implementing decisions of the Board of
Directors of the Capital Market Commission.
Nea Smyrni, April 6,
2023
The declarants
Charalambos Stasinopoulos
Spyridon Barbatos
Evangelos Angelides
ID
Σ
577589
ID
ΑΕ
077416
ID 1157610
 
Annual Financial Statement for the Financial Period from January 1 to December 31,
2022 (Amounts in EUR)
4
ANNUAL MANAGEMENT REPORT OF THE BOARD OF DIRECTORS FOR THE FINANCIAL YEAR
2022
The present Annual Management Report of the Board of Directors of the Company “PROFILE
COMMERCIAL AND INDUSTRIAL INFORMATICS SOCIETE ANONYME”, which follows, (hereinafter called
for short “
Report
or “
Annual Report
”) refers to the financial year 2022 (01.01.2022–31.12.2022), has
been drawn up and is aligned with both the relevant provisions of l. 4548/2018 (GG A’ 104/13.06.2018),
and l. 3556/2007 (GG A’ 91/30.04.2007) and particularly its article 4, as well as the delegated thereby
implementing decisions of the BoD of the Capital Market Commission. The Consolidated and Corporate
Financial Statements have been drafted according to the International Financial Reporting Standards
(IFRS), as these have been adopted by the European Union.
The present Report comprises, in a concise, but readily understood, substantial and comprehensive way,
all the significant individual thematic sections, which are necessary, based on the above legislative
context, and depicts in a true and correct way all the related information required by law, in order to
reach an essential and in-depth update for the activity, at that particular period, of the Societe Anonyme
“PROFILE COMMERCIAL AND INDUSTRIAL INFORMATICS SOCIETE ANONYME”, (hereinafter called for
short “
Company
”, or “
PROFILE
”, or “Parent Company”), as well as of the PROFILE Group, in which Group,
apart from PROFILE, the following related companies are included:
“GLOBALSOFT DEVELOPMENT AND MARKETING OF SOFTWARE AND COMPUTING SYSTEMS
MATERIAL SOCIETE ANONYME”, with registered office in Nea Smyrni, Attica, in which the Company
participates with 97,09%;
“PROFILE SYSTEMS & SOFTWARE (CYPRUS) LTD”, with registered office in Cyprus, in which the
Company participates with 100%;
“COMPUTER INTERNATIONAL FRANCHISE LIMITED LIABILITY COMPANY”, with registered office in
Nea Smyrni, Attica, in which the Company participates with 50,18%;
In relation to the said Limited Liability Company it is noted that by virtue of notarial deed under
number 5055/01.07.2008 of the Athens Notary Public Haricleia Serveta-Phili, it has been dissolved
and is currently under liquidation, that has not been yet concluded;
“PROFILE SOFTWARE (UK) LTD”, with registered office in the United Kingdom, in which the above
Cypriot subsidiary participates with 100%;
“PROFILE DIGITAL RECORDING, STORAGE AND RELEASE OF MINUTES OF COURT MEETINGS
SOCIETE ANONYME”, with registered office in Nea Smyrni, Attica, in which the Company
participates with 100%;
“LOGIN S.A.”, with registered office in France, in which PROFILE SYSTEMS & SOFTWARE (CYPRUS)
LTD participates with 99,92% and PROFILE SOFTWARE (UK) LTD with 0,08%;
“PROFILE TECHNOLOGIES COMMERCAIL AND INDUSTRIAL COMPANY SINGLE MEMBER SOCIETE
ANONYME”, with registered office in Thessaloniki, in which the Company participates with 100%;
“CENTEVO A.B.”, with registered office in Stockholm, Sweden and presence through a branch in
Oslo, Norway, in which PROFILE SYSTEMS & SOFTWARE (CYPRUS) LTD participates with 100%.
The present Report accompanies the annual financial statements (corporate and consolidated) of the
financial year 2022 (01.01.2022-31.12.2022) and, in view of the fact that the Company draws up
consolidated and non-consolidated financial statements, it constitutes a single report, with main
reference the consolidated financial data of the Company and those of its affiliated enterprises and with
Annual Financial Statement for the Financial Period from January 1 to December 31,
2022 (Amounts in EUR)
5
reference to individual (non-consolidated) financial data, solely on the points where it has been deemed
advisable or necessary for the better understanding of its content.
The Report is included as such, together with the financial statements and other data and statements
required by law, in the Annual Financial Report concerning the closing year 2022 (01.01.2022-
31.12.2022).
Business Model and Value Creation
Since 1990, PROFILE is a leading company developing software solutions for the international financial
industry, the wider enterprise industry and the public sector. The PROFILE Group of companies has
international presence in Europe, Middle East, Asia, Africa and America and consistently invests in
technologically advanced solutions both for start-ups and established banking and financial institutions,
either through direct cooperation or through a trustworthy network of partners.
The PROFILE Group provides innovative, award-winning and flexible software solutions, based on the
international quality standards and aims to the best client service. The continuous investment in
Research and Development in combination with the constant communication with clients and business
partners all around the world, allow to design, develop and deliver software solutions that meet the
requirements of the fast-growing market. The Company has a dynamic work environment, which
promotes taking initiatives in order to provide a customer-centric approach. The Group’s deliverable
solutions are recognized by international rating houses, analysts and consultants, while the Group is also
awarded and included in international studies of the industry as a distinguished supplier of software
solutions.
The PROFILE Group has been expanded relied on the support, the expertise and the professionalism of
its employees, its management and its business partners. Through all the years of the operation, the
Company has a robust financial position, maintaining its vision and enhancing its international presence,
with both new and existing clients and well-trained personnel. The Company is recognized as reliable
and specialized partner in financial services software and our clients are aware of the continually
integrated and scalable solutions which are able to address their continuously developing needs.
The PROFILE Group delivers integrated solutions to the sectors of Investment Management, Banking,
Treasury, Risk & Compliance, Capital Markets and Ticketing. Additionally, the Group has significant
presence in public sector projects.
During the past years, the sector of Investment Management has changed dramatically in order to
address the investors’ (both institutional and private) requirements regarding immediate monitoring
with accuracy and transparency. A wide range of operations is covered, such as Wealth Management,
Fund Management, Custody, Insurance Investment Management, Family Office, Financial Advisors, and
Brokerage and other. Specifically, Axia Suite is an award-winning, web-based, omni-channel solution
which provides integrated investment managements with full compliance with MiFID II. Axia Suite is
designed in cutting-edge technologies and provides the required functionality in order to respond and
surpass the market requirements with holistic approach.
IMSplus is an internationally award-winning Investment Management platform (accessible from
desktop, web and mobile) that meets the requirements of the wider financial services sector through a
Annual Financial Statement for the Financial Period from January 1 to December 31,
2022 (Amounts in EUR)
6
set of specialized solutions. These solutions can be deployed either as stand-alone or as an integrated
investment management platform which fulfill any IT ecosystem’s needs of an organization.
Regarding the Banking sector, the Group’s solutions are focused on the new trend which incorporates
digital and flexible banks, while the requirements for competitive services in banking and financial
sectors are increasing continuously. As a result, financial institutions need flexible solutions in order to
provide advanced client-centric services and new products directly and reliably.
Finuevo Core is a modern integrated solution from PROFILE which addresses the banking related needs
of FinTech start-ups, Universal Banks, Private Banks, Islamic Banks, financial institutions that offer Auto
& Leasing services and Peer-to-Peer Lending/Crowdfunding platforms and Alternative Finance
institutions. Furthermore, Finuevo Core Payments delivers an integrated payments solution, through a
number of different channels, including the end users, payment schemes and interbank networks in a
secure work environment. The solution covers all major payments instruments (credit transfers, direct
debits, corporate payments) and can be deployed as stand-alone or as a part of the Finuevo Core Banking
platform.
Acumen
net
is a cloud-native fully integrated Front-to-Back office and accounting platform which is able
to support all financial transactions, such as cash management, forex operations, collateral deals,
securities, interest, currency and asset swaps, equities, futures and FRA, Over The Counter (OTC) and
listed options, credit linked instruments, commodities and Islamic deals.
Moreover, every financial institution needs a holistic approach to manage the Risk & Compliance issues,
while supporting the goals that have been set by the management and the governance. PROFILE,
combining tested software, services and functionalities, delivers a wide range of solutions for market
and credit risk management, as also for GRC, ALM and fund management. RiskAvert is a reliable and
cloud-enabled solution that allows to calculate, manage and produce reports for credit, operational and
market risk through an integrated modular environment. It covers all supervisory approaches of risk
calculation allowing the bank to smoothly evolve from a standardized approach towards the IRB
approach.
Regarding the Capital Markets sector, during the past years, it has been changed rapidly and there is
increased pressure in order to provide investors with faster and more reliable services. Modern tools
are able to achieve higher effectiveness and lower costs for remote access and on-the-go transactions,
while ensuring compliance with the market requirements. PROFILE, taking advantage of its extended
experience, delivers a set of solutions for Mobile Data Feed, Online Trading, Shareholder’s Management
andReal-Time Data Feeds. Mobius Wealth, developed by PROFILE, is a top-quality mobile wealth
management app, providing a compelling digital experience, full interface with back-end systems and
data display across all communication devices (smartphones/tablets, iOS Universal Application &
Android). Additionally, GS Market provides the end users, both institutional investors and retail, with
unique flexibility. GS Market (ex. Monopoly) is the most trustworthy choice among investors for
following stock exchange market data (both spot and derivative), mainly due to its user-friendliness and
its dynamic environment. Plexus app, developed by PROFILE, provides real time Market Data streaming
on iPhone® and iPad® devices.
 
Annual Financial Statement for the Financial Period from January 1 to December 31,
2022 (Amounts in EUR)
7
PROFILE's Registry is the most effective and widespread solution for managing/monitoring the stock
market of a multi-shareholding company. Finally, Profile Vote is an innovative digital voting system that
fully meets the most advanced needs of modern companies.
PROFILE Group also undertakes important projects in the public sector. In particular, through the
Company Profile Anonymous Company of Digital Recording of Storage and Disposal of Court Meeting
Practices, it is active in the public sector and specifically, in the project of the Ministry of Justice
concerning the digitization and automation of the practical meetings of the courts. At the same time, it
is in continuous monitoring of the projects announced by the various organizations and bodies of the
public sector in order to participate in projects of interest, either through a company of the PROFILE
Group or as a member of an Association of Companies.
In addition, PROFILE Group solutions are developed in cloud technologies in accordance with
international security standards. PROFILE is ISO certified. Its solutions utilize artificial intelligence (AI)
tools to fully meet the evolving needs of the market. In addition, Profile Technologies S.A. will focus on
developing new features primarily related to financial software, with cutting-edge technologies,
adopting the latest developments in artificial intelligence (AI), machine learning (ML), robotic process
automation (RPA) and blockchain, and will also invest in Augmented Reality (AR) for investment
management and banking. It will also undertake part of the PROFILE Group’s development work carried
out to date in Europe (Athens - Paris - Nicosia) and Asia (India), thus allowing the other parts of the
Company to focus on further specialization and project implementation. Thessaloniki is developing into
one of the cities in Greece that bring out technology companies by attracting and offering unique
development opportunities for new developers.
Profile Technologies S.A. has attracted experienced and talented professionals from Northern Greece,
computer scientists in the fields of research, as well as graduates of the universities of the region, thus
enhancing the professional development of the local community.
PROFILE Group also provides a range of services to its customers to fully meet their needs, from the
beginning of a project to their training, in order to make full use of the available solutions and products.
Implementation services cover: Project Planning and Implementation, Setup and Adaptation Services,
Consulting services and Education.
In addition, PROFILE provides reliable professional services for the effective implementation of each of
its projects, with a range of services even after implementation for its international clientele such as
Customer Support, Technical Support and Consulting Services. PROFILE's Customer Support department
is designed to facilitate the prompt processing of requests for optimal and immediate resolution of any
issues that arise. Support offers a common point of contact and monitoring for the customer.
PROFILE Group also has a significant international presence through its subsidiaries abroad. More
specifically, through the subsidiary Cypriot company Profile Systems & Software (Cyprus) LTD the Group
has a presence in the Cypriot market as well as in the Middle East (Dubai) and Africa promoting and
supporting the Group's products and solutions in these markets. Also, through Profile Software (UK) LTD,
Annual Financial Statement for the Financial Period from January 1 to December 31,
2022 (Amounts in EUR)
8
based in the United Kingdom, the Group has a presence in the UK market as well as in the wider region
of Western Europe.
In France, Login S.A., which was incorporated into the PROFILE Group in 2017, has developed and
evolved the
Α
cumen
net
product and taking advantage of the Group's technological infrastructure and
commercial channels worldwide promotes and combines the solution of
Α
cumen
net
with the other
product solutions of the PROFILE Group. Since March 2021, with the acquisition of Centevo AB, the
Group acquires a presence with two units in the wider region, namely in Sweden and Norway.
More
detailed information regarding the position of the Company and the Group, important events,
discrimination of implementations of new projects and the completion and promotion of new solutions
of the Group are presented in sections A, B and C of the Management Report of the Board of Directors
of the Company.
PROFILE Group is managed in accordance with the principles and applicable corporate governance
legislation, having created internal structures and incorporating into the operation of the Manuals,
Codes, Policies and Procedures and Regulations, aimed at enhancing transparency, responsible
operation and decision-making in a collective manner, in all areas aimed at the Sustainable Development
of Companies and the safeguarding of the interests of Shareholders and all its Stakeholders. The Group
Companies comply with and apply the applicable legislation in each country where they operate.
Furthermore, the Parent Company complies with and applies, inter alia, the legislation of the Capital
Market and the Regulation of the Athens Stock Exchange.
The Policies ensure the compliance of the PROFILE Group with the applicable institutional framework,
the incorporation of best practices in its operation and are specified in terms of implementation with
the corresponding Standard Procedures. They cover all critical areas of operation and development of
companies, in the areas of Governance and Compliance, Risk Management, Operations, Human
Resources, Personal Data Protection, Infrastructure Management and Physical Security. At the same
time, PROFILE Group has highlighted the Values and Principles of Customer Satisfaction, Ethos and
Integrity,
Teamwork,
Knowledge/Continuous
Improvement/Innovation,
Entrepreneurship
and
Documentation and Evaluation, as the building blocks that mark what is important, has priority, is right,
accurate and desirable for the Group.
The thematic Sections of the present Report and their content, are, in particular, as follows:
SECTION
Α΄
Evolution, performance and position of the Company and Group – Financial and non-financial key
performance indicators
In the present Section, is included a correct and brief representation of the development, activities and
position of all enterprises included in the consolidation. This representation takes place in such a way so
as to provide a balanced and comprehensive analysis in relation to the above categories of themes,
corresponding to the size and complexity of the activities of these enterprises. Also, at the end of the
relevant representation certain indicators are set out (financial or not) which the Company’s
Management evaluates as useful for a fuller understanding of the above issues.
1. Financial Data
The year 2022 was an unprecedented and highly volatile year for the global economy. The combination
of the effects of the coronavirus pandemic, with geopolitical developments focusing on Ukraine and the
Annual Financial Statement for the Financial Period from January 1 to December 31,
2022 (Amounts in EUR)
9
ensuing energy crisis, contributed to high inflationary formations and an increase in interest rates by
Central Banks after at least a decade.
PROFILE Group, despite the extremely volatile and liquid financial environment of the year 2022, has
managed to meet the challenges by strengthening its market shares, increasing its turnover to a
satisfactory level, strengthening its assets and maintaining its liquidity and capital adequacy. A
significant role to this fact played the further considerable increase of the Group’s activities in
international markets (a direction towards which the Group has been steadily investing over recent
years), as well as the Group’s ability to complete complex projects even against an unstable, fluctuating
and uncertain environment.
At the same time the Group, with the utmost sense of responsibility, continues to watch closely the
developments in the global and Greek economy and to take every step necessary to ensure the
unobstructed continuation of its business activity, in and particularly out of Greece.
Out of the continuous and systematic effort to increase productivity, both of the human and the financial
resources, the Group aims at stabilizing the financial indicators and further improving the positive
operating results both at Company and –mainly–
Group level.
2. Evolution and performance records of the Group
The course of the Group’s economic fundamentals, during the last three years, is as follows:
THE GROUP
(
Amounts in EUR
)
31.12.2022
31.12.2021
31.12.2020
2022-2021
2021-2020
Total Assets
47.172.983
43.437.647
37.247.638
8,60%
16,62%
Total Equity
27.873.031
24.941.942
22.278.367
11,75%
11,96%
Revenue
25.035.221
19.265.835
15.040.891
29,95%
28,09%
Gross Profit
11.719.682
9.610.688
8.102.792
21,94%
18,61%
Profit before tax
3.826.607
2.575.699
1.311.174
48,57%
96,44%
Profit after tax
3.266.348
2.036.804
951.117
60,37%
114,15%
EBITDA
6.202.275
5.152.320
4.274.557
20,38%
20,53%
In June 2022 the sale of the Ticketing and Customs Operations Management Business Unit took place
and in order to provide a more complete and accurate (from a comparative point of view) presentation
of the basic Consolidated Financial Results, a table based on "continuing" and "discontinued" activities
is presented below.
Note 7 to the financial statements provides details of discontinued activities.
2022
2021
GROUP
Total
Continuing
activities
Discontinued
activities (*)
Total
Continuing
activities
Discontinued
activities (*)
Turnover
25.364.688
25.035.221
329.467
20.117.254
19.265.835
851.419
Profit before tax
5.223.298
3.826.607
1.396.691
2.789.102
2.575.699
213.403
Profit after tax
4.355.767
3.266.348
1.089.419
2.203.258
2.036.804
166.454
EBITDA
7.671.196
6.202.275
1.468.921
5.485.246
5.152.320
332.926
Annual Financial Statement for the Financial Period from January 1 to December 31,
2022 (Amounts in EUR)
10
(*) including the gain on the sale of the business segment
Revenue, EBITDA
The Group continued during the closing year 2022 the development, promotion and distribution of
mainly own products, with the Gross Profit Margin amounting to 46,81%, a fact which reflects the
dynamics of the Group but also rewards the strategic direction of its Management in the development
and production of new reliable products with an emphasis on innovation and cutting-edge technology.
The turnover amounted to € 25.035 thousand compared to € 19.266 thousand in the corresponding
financial year 2021, recording an increase of 30% as a result of successful acquisitions and the company's
extroverted policy, and against the general uncertainty that exists in the macroeconomic environment
due to continuously rising inflation and interest rates. The Group’s EBITDA/Turnover percentage
amounted to 25%, while After-tax Profits appear increased to € 3.266 thousand from € 2.037 thousand
the previous year.
3. Financial and non-financial key performance indicators of the Group and the Company
Listed below are certain measurable indicators, financial and non-financial, that relate to the key
performance, position and financial status of the Group and the Company.
THE GROUP
THE COMPANY
31.12.2022
31.12.2021
31.12.2022
31.12.2021
Asset Capitalization: (The ratio measures the
proportion of funds allocated to fixed assets)
39,43%
38,78%
51,99%
51,40%
Equity/ Fixed Assets: (The ratio measures the capital
structure)
1,50
1,48
1,20
1,19
Days Sales Outstanding-DSO: (The ratio measures the
days required to collect receivables from customers)
85
94
61
72
Total Liabilities / Total Equity & Liabilities: (The ratio
measures the debt dependency)
40,91%
42,58%
37,41%
38,73%
Equity / Total Equity & Liabilities: (The ratio measures
debt dependency)
59,09%
57,42%
62,59%
61,27%
Loans / Equity: (The ratio measures the proportion of
equity in the total debt)
23,91%
27,77%
26,55%
30,94%
Current Assets / Short-Term Liabilities: (The ratio
measures Group's and company's ability to cover
short-term obligations with current assets)
1,89
2,02
1,59
1,87
Return on Assets: (The ratio measures net profit after
taxes as a percentage of assets)
6,92%
4,69%
6,71%
2,36%
Return on Equity: (The ratio measures net profit after
taxes as a percentage of Equity)
11,72%
8,17%
10,73%
3,85%
Gross Profit Margin: (The ratio measures Gross Profit
as a percentage of sales)
46,81%
49,88%
33,59%
47,92%
Net Profit Margin: (The ratio measures net profit after
taxes and minority interests as a percentage of sales)
13,04%
10,58%
20,41%
8,51%
4. Alternative indicators for performance measurement
Annual Financial Statement for the Financial Period from January 1 to December 31,
2022 (Amounts in EUR)
11
An Alternative Performance Measure indicator (APM’s), according to the definition of the European
Securities and Markets Authority, is a financial measure of the historical or future financial performance,
financial position, or cash flow which, however, is not defined or specified in the current financial
reporting framework. Although not included in the IFRS, APM’s should be assessed as ancillary and
always in combination with the results arising from the IFRS, with the aim to better understand the
operating results of the Group and its financial position, in order to facilitate the decision making for the
users of the financial statements.
The Group during the closing financial year and its comparative, has not made adjustments to funds of
the statements of comprehensive income, statements of financial position or statements of cash flows
and has not implemented extraordinary actions or non-recurring revenues or expenses that have a
significant effect on the formation of the said indicators.
In the context of the Alternative Performance Measure Indicators (APM’s) the Group sets out the
indicator “Earnings before Interest, Taxes, Depreciation and Amortization – EBITDA”. EBITDA is defined
as pre-tax profit plus/minus financial and investment results plus total depreciation and amortization.
The investment results include profits or (losses) from the revaluation of fixed assets, goodwill and
intangible assets impairment as well as profits or (losses) of subsidiaries held for sale.
ΕΒΙΤ
DA also
exempts lump-sum and non-recurring charges that are not included in the company’s usual activities,
such as compensation provisions due to court actions as well as other extraordinary provisions. These
readjustments are made so that the said indicator stays comparable and consistent over time, in
compliance with and pursuant to the applicable guidelines in relation to the Alternative Performance
Measure Indicators (APM’s).
THE GROUP
THE COMPANY
Continued activities
31.12.2022
31.12.2021
31.12.2022
31.12.2021
Operating results (Earnings before taxes,
funding & investment results) (
Α
)
4.155.753
2.484.938
(743.262)
(140.885)
Total Depreciation
(Β)
2.046.522
2.667.382
704.710
703.515
EBITDA (Α) + (Β) = (
C)
6.202.275
5.152.320
(38.552)
562.630
Revenue (D)
25.035.221
19.265.835
10.738.687
8.319.898
(%) EBITDA Margin
(C) / (D)
25%
27%
-0,36%
7%
Furthermore, if non-recurring and non-cash charges are not taken into account, the results are as
follows:
THE GROUP
THE COMPANY
31.12.2022
31.12.2021
31.12.2022
31.12.2021
EBITDA (C)
6.202.275
5.152.320
(38.552)
562.630
Plus: Stock Option Accounting (
Ε
)
306.854
228.126
306.854
228.126
Plus: Goodwill Impairment of Subsidiary (F)
250.000
-
250.000
-
Revalued EBITDA (C) + (Ε) + (F) = (G)
6.759.129
5.380.446
518.302
790.756
(less) Total Depreciation
(Η)
(2.046.522)
(2.667.382)
(704.710)
(703.515)
Plus: Depreciation from valuation of Login’s
intangible assets (I)
231.927
231.927
-
-
Plus: Depreciation from valuation of Centevo’s
intangible assets (J)
329.914
271.021
-
-
(plus/ less) Financial Total (K)
(329.146)
90.761
2.904.264
1.049.858
Annual Financial Statement for the Financial Period from January 1 to December 31,
2022 (Amounts in EUR)
12
Revaluated Profit Before Taxes (G) + (Η) + (I) +
(J) + (K) = (L)
4.695.302
3.306.773
2.717.856
1.137.099
(less) Income tax (M)
(560.259)
(538.895)
31.165
(201.314)
Revaluated Profit After Taxes (L) + (M)
= (N)
4.135.043
2.767.878
2.749.021
935.785
SECTION
Β΄
Significant events arising during the closing financial year 2022
The significant events that took place, during the financial year 01.01.2022-31.12.2022 at Group and
Company level, as well as their possible influence on the annual Financial Statements, are, in brief, the
following:
Sale of the Ticketing Business Unit
and Customs Operations Management for Customs Brokers
On 14 June 2022, PROFILE Group sold and transferred the Ticketing and Customs Operations
Management Business Unit to CRS LIKNOSS for a total consideration of EUR 2.250.000. The transferred
Business Unit concerns the UTS TicketLink ferry ticket booking system and the customs management
software, while the total turnover of this unit in 2021 amounted to EUR 851 thousand. For the period
01/01/2022 to 14/06/2022, the turnover of this Business Unit amounted to EUR 330 thousand,
representing approximately 1,3% of the PROFILE Group's turnover for the closing financial year.
2. Significant Implementations
1.
Cirdan Capital, in the UK, has chosen Axia to offer its clients - professional investors, Private
Banks, Wealth Managers and Family Offices - solutions that leverage advanced technologies to
provide easily accessible, even more personalised investment recommendations Axia Suite, an
award-winning investment management system, will extend and enhance Cirdan Capital's
existing advanced platform across all services available to its capital markets clients, while fully
supporting the functionality of its direct indexing solution, which Cirdan Capital will introduce
to the market in the second half of the current financial year. PROFILE Group continues to have
an active presence and a leading role in the digital transformation of the Greek public sector,
with the participation and awarding of major projects that promote the service of citizens and
the upgrading of state services.
2.
The
Central Bank of Egypt (CBE),
has chosen Acumen.plus, the cash platform for compliance
and automation, offering its customers efficient management and optimization of its
operations, with a full range of reports for reserve and debt management. By moving to an
integrated platform and optimizing workflows, CBE drastically reduces costs and complexity,
thus benefiting from a secure scalable technology, optimally meeting the current and future
requirements of its Treasury
.
3.
UBCI
Bank
has chosen Acumen.plus, the internationally implemented Treasury Management
System, to effectively manage the entire spectrum of Treasury and optimize its operations,
offering a fully digital experience to its customers
. Customised processes and automation
contribute to increased productivity, reducing implementation time and resources spent.
4.
Forte Fondsforvaltning AS
, based in Norway, has enhanced its Asset Management operations
with Profile Centevo Suite's competitive Asset Management solution to automate and optimize
Annual Financial Statement for the Financial Period from January 1 to December 31,
2022 (Amounts in EUR)
13
its operations, making a significant contribution to achieving compliance control. The speed and
quality of project execution is a milestone, as Profile Centevo's experienced team completed the
installation of the solution at the company in record time - compared to the industry average."
5.
Finally, the projects of the
teka.gov.gr
portal and the online application myTEKA, on behalf of
the new Temporary Capital Insurance Fund, were completed, offering direct digital information
to insured persons. Both projects offer modern digital value-added solutions for the
modernisation of the country's public sector, promoting the service of citizens
.
3. Completing and launching new solutions
1.
The new innovative Acumen.plus Loan Portfolio Management solution for businesses was
presented. The solution fully supports businesses in the area of loan portfolio management and treasury
management, including shipping companies and family offices, offering advanced functionality, as well
as risk management, while covering all financial products.
2.
Finuevo Suite was presented, the new generation banking platform that combines innovative
and flexible Core Banking, Lending, Loan Management and Payments functionalities through modern
and smart Digital Banking channels for the end user, representing the evolution in digital banking. With
Finuevo Suite, organizations such as traditional banks, Electronic Payment Institutions (EMIs),
Microfinance Institutions (MFIs) and Digital Banks of various types (Digital Banks, Challenger Banks,
Neo-Banks, Digital Lenders) have at their disposal a front-to-back banking platform that covers a wide
range of end-to-end banking operations and customer journeys, always in full compliance with modern
regulatory guidelines and regulations
3.
Subsequently, Finuevo Core was presented, the new generation banking system that is the
evolution of the leading banking system Finueco Core. The platform has been radically redesigned for
efficiency and ease of use, leading to increased productivity and better customer service. Finuevo Core
adopts a modern banking logic and offers a new personalized user navigation experience through a
completely redesigned front-end.
4.
The Group also launched the new advanced onboarding feature of Finuevo Digital, the
innovative mobile-first platform for Digital Banking in-a-box, in order to improve the user experience
and make the process of online transactions safer and easier. Specifically, through an interactive
interface that offers instructions, the user easily enters the necessary data during the enrollment
process, which eliminates drop-outs and automates the process to completion. The customer receives
personalized imaging easily and quickly.
5.
RiskAvert, the competitive risk management system for advanced capital requirement
calculation, has been upgraded with the addition of new functions to cover the supervisory
requirements for NPE Backstopping, as well as for Interest Rate Risk in the Banking Portfolio (IRRBB).
6.
PROFILE Group announced a major upgrade of Axia Suite, the award-winning investment
management platform for Mutual Fund Management and Investment Services Companies, offering an
Annual Financial Statement for the Financial Period from January 1 to December 31,
2022 (Amounts in EUR)
14
integrated and omnichannel customer experience with seamless service. The upgraded version enables
improved management of large volumes of data, better execution of daily tasks and automatic
generation of multiple reports, saving significant time and resources
.
4. Significant International Distinctions
The Group was once again included in important industry reports of global prestige, such as Gartner,
Aite, Celent and Forrester, while it was nominated for a number of awards for product specialization
and functionality. It is worth noting that the Company has been included in the IBS Sales League Table -
Leadership Club, Rank 2 for Investment & Fund Management, Islamic - Wholesale Banking and Treasury
& Capital Market.
The major awards for the closed fiscal year 2022 include:
“Best Investment Management Solutions Provider UK 2022” and “Best Digital Banking Solutions
Provider Europe 2022” by World Economic Magazine
"Best Investment Management Solutions Greece 2022" by International Business Magazine
"Best Digital Banking Software Company UK 2022" and "Best Treasury Management Software
Company UK 2022”, by Finance Derivative
"Digital Banking Software in Europe 2022" by Innovatech Awards
“Islamic Banking | Wholesale Banking | Treasury & Capital Market and “Wealth Management |
Investment & Fund Management” 2022 by IBSi Sales League Table (SLT) 2022
"Software Solutions Provider – The Next 100 Global Awards 2022” and “Best Treasury
Management Software Solution Provider Europe 2022 – Banking & Finance Technology Awards” by
Global Banking and Finance Review
"Business Innovation – 2022” by Chrima Business Awards 2022
At the same time it was included in the Finalists for "Banking Tech of the Year" by Europe FinTech Awards
2022.
More information on the international distinctions of the Group is available on the Company’s web
page:
https://www.profilesw.com/el/news.php
5. Event Organization and Participation
PROFILE Group was present at important events in the financial sector, promoting digital transformation
through innovative solutions at an international level.
In particular,
1.
participated in the
Banking Summit
as a Bronze Sponsor. With the main pillars of
discussion being the recovery projects of the European economy, the attractiveness of the financial
sector in Greece, as well as the expected investments, emphasis was placed on digital transformation
and the future of the banking sector, while PROFILE Group executives had the opportunity to talk to
market experts about the new trends and their influence on the banking sector.
2.
PROFILE CENTEVO, a leading developer of Asset/Fund Management solutions in
Scandinavia and a subsidiary of the PROFILE Group, was a sponsor of the
Fondmarknadsdagen
, held on
16 February in Stockholm. Profile Centevo executives discussed with the delegates about the
Annual Financial Statement for the Financial Period from January 1 to December 31,
2022 (Amounts in EUR)
15
developments in the industry, the range of the Group's new, sophisticated solutions and the
international approach the Company offers, supporting the local market needs in Fund Management.
3.
On March 29-30, PROFILE Group sponsored the
6th Digital Integration in Wealth
Management Conference
in London where it presented Axia Suite, the innovative and internationally
recognized Wealth Management platform that contributes to the digital transformation of investment
firms to provide a competitive user experience in an automated environment, while being fully
compliant with the regulatory framework.
4.
The Group was a central supporter of the
7th Delphi Economic Forum
which took place
in the city of Delphi between 6-9 April. During the conference, the Group's executives delved with their
interlocutors into the market trends for the banking industry, as well as how digital transformation is
reshaping the landscape of the Greek Public Sector.
5.
The Group participated in the
9th Digital Banking Forum
held on 28 April and discussed
the developments in the Digital Banking market and presented the new Finuevo Digital solution, a major
innovation in the field of digital banking.
6.
PROFILE CENTEVO, a subsidiary of the Group, participated in
Fondsdagen
, held on May
19 in Oslo, Norway, presenting Centevo Suite, an integrated solution that empowers financial
institutions, offering full automation and optimization of their daily processes.
7.
By participating in the
Nordics Cash and Treasury Management Conference
as a
sponsor, PROFILE Group presented the specialized solutions it develops for the needs of the local
market in the Treasury sector.
8.
It also participated as a Bronze Sponsor at the M
iddle East Banking Innovation Summit
(MEBIS)
2022 held on 25 and 26 May in the United Arab Emirates, presenting its innovative and
internationally recognized solutions for the Banking and Investment Management sectors, which are
targeted at Fintechs, Banks and Investment Institutions.
9.
With its participation in the largest FinTech exhibition,
MONEY 20/20 Europe
, held
between 7-9 June in Amsterdam, PROFILE Group presented its innovative banking solutions.
10.
PROFILE Group participated in important events of the financial industry, promoting
digital transformation through innovative solutions, at national and international level. In particular, it
participated in the
12th e-Government Forum
as a Gold Sponsor, which was held on 2-3 November
2022, supporting with its sponsorship the digital reform in the Public Sector. The company presented in
the Thematic Section "Principles of Development and Technologies for the Implementation of Integrated
e-Government Services" the project of Digital Recording, Storage and Availability of Minutes of Court
Sessions and Plaque Promotion Actions to Citizens.
11.
In addition, it dynamically supported the
20th Bank Management Conference
, which
was held on 23 November 2022, by participating in the presentation of the dimensions and dynamics of
the Customer Centric Model and the different ways it is used by market clients. The aim of the
Conference was to improve customer service through the use of digital technology.
12.
Active participation and support on behalf of the Group in the conference
"Greek
Economy and Entrepreneurship"
successfully organized by "Naftemporiki" on 29 November 2022,
contributing to the presentation of the challenges and opportunities that are emerging in the Greek
economy and changing the balance in entrepreneurship.
13.
In addition, PROFILE Group participated in the
Digital Economy Forum
as a Gold
Sponsor, which was held on 19 December 2022, supporting with its sponsorship the annual conference
of the SEPA on the digital economy. The Company presented in the Thematic Session "Roundtable
Annual Financial Statement for the Financial Period from January 1 to December 31,
2022 (Amounts in EUR)
16
Discussion - The Challenges and Opportunities of the Next Day", the investments it makes in Research
& Development (R&D) and the challenges it faces in the successful implementation of large-scale
projects, while highlighting the best practices addressed to the institutions and organizations of the
Public Sector, as well as international organizations.
6.
Affiliations - Associations
PROFILE CENTEVO, a member of the PROFILE Group, has announced that it has become a member of
the Swedish Fintech Association, aiming to spread innovation and expertise within the organisation and
the Swedish market as a whole. Membership marks the beginning towards great synergies to accelerate
the pace of innovation in Sweden.
7.
Corporate Social Responsibility (CSR) activities
The PROFILE Group, with continuous and selfless social contribution, actively supported the
Workshop
of Special Vocational Education (S.V.E.E.E.E.) of Kallithea
in the framework of Corporate Social
Responsibility (CSR), by providing equipment for the school's offices (office computers, wardrobes,
lockers, etc.). In this way, it contributes significantly to upgrading the infrastructure, facilitating the work
of the administrative staff, the teaching of students and full accessibility to their education.
In addition, the Group supported the
charitable organization "MANA",
in order to support and
contribute significantly to the proper information regarding the prevention, early diagnosis,
rehabilitation and reintegration into society of every woman who has been diagnosed with gynecological
cancer.
SECTION C
΄
Anticipated course and evolution of the Group for the financial year 2023
For 2023, the PROFILE Group’s strategy aims to further strengthen extroversion and continue growth in
new markets as well as enhanced participation in domestic IT projects, mainly of the wider public and
private sector. The Group systematically strengthens its presence and activities in foreign markets, in
order to fully cover and serve the needs of the banking and investment sector, in which it has significant
expertise, either through existing products - solutions of the Group, or through acquisitions in markets
where the Group had no presence till now or can provide software solutions that could be combined
with the existing ones. In addition, it substantially strengthens the staffing and structures of the
departments of the Group's companies that monitor the tenders for public IT projects, coordinate and
implement the proposals for participation in tenders and subsequently implement the realization of the
projects undertaken by the Group.
However, it should not be overlooked that in view of the Group's highly export-concentrated
orientation, the prospects, results and course of both the Group and the Company are directly related
to the situation and conditions prevailing in the global economy and market (e.g. Ukraine crisis, energy
crisis, inflation and bank interest rates as well as the development of international relations, etc.).
On the other hand, the Greek economy, which in the last decade has experienced the worst crisis in its
post-war history, has managed to recover and enter a medium-term growth trajectory. The upgrade of
Greece's debt, the issuance of low-interest bonds, the improvement of bank financing conditions, the
 
Annual Financial Statement for the Financial Period from January 1 to December 31,
2022 (Amounts in EUR)
17
recovery of confidence in the banking system and the complete abolition of restrictions on capital
movements from 2019, certify the substantial progress made. According to the data to date, and
especially in view of the recent crisis in Ukraine, which has created geopolitical, economic and energy
distortions, as well as rising inflationary developments with the consequent increase in borrowing rates,
are holding back global economic growth for the year 2023. It should be noted, however, that the Group
does not operate in Ukraine through a subsidiary, nor has it undertaken any project in that country.
The above compose a special environmental mix which is currently difficult to assess, and which in any
case creates a growing insecurity as to drawing definitive conclusions about developments during the
financial year 2023.
In any case, the Management monitors the developments and adjusts the Group's strategy accordingly.
The Group’s priorities for the current year include further improving its position in the markets of the
United Kingdom, France, Cyprus, the United Arab Emirates and Scandinavia as well as infiltrating new
markets, mainly through:
(a) further enhancing the Group’s activity abroad, as long as it maintains and consolidates its presence
with offices, subsidiaries and other representative collaborations in Greece, France, Cyprus, the United
Kingdom, the United Arab Emirates, Singapore and Scandinavia;
(b) hiring of new, specialized personnel;
(c) development and presentation of new operations and innovative products in domestic and foreign
market;
(d) further rationalization of costs, which is already being implemented through restructuring of the
corporate operations and its individual directorates, in order to achieve optimal utilization of the
possibilities provided within the IT industry at global level;
(e) targeted approach of new projects and particularly complex information technology projects both in
the domestic public and private sector and in similar projects abroad.
The flexibility of the internal structure and organization that has already been created by the Group over
the past years, allows it to adapt more quickly and efficiently to the market conditions that are formed
each time, in order to effectively use, if presented, substantial growth opportunities and hedge the
recessionary external environment which occurs due to the factors mentioned above.
In addition, the investments of previous years aimed at maintaining the competitive advantage and the
development of the Group's operations in sectors with high added value, are expected to continue to
have a beneficial effect on profit margins, both on Group figures and the current financial year.
The Group and in particular the Management of the Company are expected to maintain a development
attitude regarding the presentation of new solutions based on cutting-edge technologies (Axia Suite,
Acumen.plus, RiskAvert as well as the new finuevo suite for core and digital banking which is the
evolution of the Group's banking platforms). In particular, they remain focused on creating innovative
technologies and integrated quality solutions, in order to improve and continuously expand the range
of products produced, with an emphasis on their competitiveness, combined with continuous and
systematic monitoring of market trends and needs, using modern production and development methods
according to international standards.
The Group systematically enhances its presence and its activities in global markets, aiming to provide
integrated solutions and address the needs of the international banking and investment sectors, in
Annual Financial Statement for the Financial Period from January 1 to December 31,
2022 (Amounts in EUR)
18
which it is specialized. Additionally, the Company invests in office activities in countries abroad
efficiently.
This includes strengthening the Group's activities both in the Asian region and in the neighboring
geographical areas, increasing the number of specialized staff in the Dubai office for greater penetration
into the wider region through local service and collaborations, while in general the strategy pursued
aims to consolidate the presence of the Company and the Group in these markets of high interest and
dynamics and to promote its specialized products in new markets.
It is particularly important that these efforts are recognized by the international media by awarding
business excellence awards, in connection with the development of new solutions.
SECTION D
΄
Main risks and uncertainties
The Company and the Group operate, as is known, in a highly competitive and particularly demanding
international environment, which is changing swiftly and rapidly. During the last years, the Company
and the Group, systematically and with a specific development plan, try to strengthen their extroversion
with steady and safe steps, not single meaningly, but in the geographical areas that are of strategic
interest, with emphasis on cutting-edge technologies and continuous technological upgrade of the
products and solutions they provide, while at the same time developing new activities and promoting
their entry into new markets, in order to further strengthen their competitiveness. At the same time,
they monitor the developments also in the domestic market.
The Company’s specialized know-how, its many years of experience and presence in the field, its
organization and the intense activity of all its executives, its wide renown in combination with the study,
development and marketing of new products, but also the continuous improvement and upgrading of
the existing ones, with emphasis on the quality and the ability of immediate satisfaction of demand but
also of the changing needs of the final customers, as well as the creation of strong infrastructures and
the infiltration of new markets, help the Company and the Group remain competitive, notwithstanding
the inherent problems facing the sector, which problems have intensified especially during the financial
crisis.
The Group's positive financial situation and its significant quality and product differentiation, combined
with the continuous development and upgrading of its products, as well as the Group's expansion into
new geographical markets, are the main supplies it has to minimize the negative consequences from the
unprecedented health crisis of the last three (3) years, but also the recent energy crisis as a consequence
of the Russian invasion of Ukraine and the resulting geopolitical and financial instability. In any case, the
Management monitors on a systematic basis and evaluates the evolution of the above events and their
impact on the financial results, given that their evolution cannot be predicted with certainty. Therefore,
depending on the intensity and duration of the phenomena, there is a possibility that part of the broad
customer base to which the Group is addressed may be driven to a suspension and/or time variation of
investment plans and the postponement of modernization programs.
The usual financial and other risks to which the Group is exposed and which it is likely to face during the
financial year 2023 are the following:
1. Risk of reduction in demand due to the general recession
Annual Financial Statement for the Financial Period from January 1 to December 31,
2022 (Amounts in EUR)
19
Although this specific risk is of a limited extent owing to the special software categories developed and
marketed by the Group, nevertheless, to avoid the reduction in demand due to the greater financial
situation prevailing in the Greek market but also due to the global recessionary environment, a
consequence of the high inflation, the rising flow of interest rates and the geopolitical and energy crisis,
the Group develops a large and wide range of products in different categories, addressing the
international market in order to counterbalance possible losses in specific market branches. The
development and evolution of software products is based on the uninterrupted everyday monitoring
and research of the market and new technologies, so that on entering new markets it may balance
possible losses.
However, in view of the latest negative developments due to the war between Russia and Ukraine, which
has had a particularly adverse impact on the global supply chain, financial stability and economic activity
and has led to a spike in the prices of energy, raw materials and consumer goods in general, the said risk
is considered real and quite significant. For this reason, special emphasis is placed on strengthening the
extroversion of the Company and expanding the International presence of the Group, as the
geographical dispersion of the Group’s activities acts as hedging to the recessionary environment.
2. Risk of increased competition by imported businesses
This risk is always real and appreciable in the area where the Group operates, especially if we consider
the fact that barriers to entry are not so strong in this area, as most of the technical terms used to
implement and complete information systems and software product configuration are widespread,
which allows foreign companies to penetrate the market with relative ease, taking advantage of
comparative advantages, especially in terms of sizes.
The Company, having now consolidated its extroverted orientation, confronts this risk with emphasis on
the design and development of quality and modular products, on the systematic and targeted
improvement, upgrade and adaptability of the products already marketed by it, on the representation
of strong and world-renowned houses, on establishing long-term, trusting relationships with its
customer base and on the expansion of its activities abroad. This risk is timeless and in that sense it is
dealt with by the Management of the Company and the Group, always placing special emphasis in the
field of quality and product differentiation and in general, in providing to customers high level services,
while at the same time, by systematic reinforcement of extroversion, it upgrades its role and presence
in the international market, a fact which renders it more resilient in confronting this risk. In addition, the
constant increase in the global market size partially abates the effects of competition, so that the activity
that takes place outside Greece, which constitutes a strategic orientation for the Company in recent
years, compensates for the inevitable losses in the Greek market.
3. Risk of technological developments
The technological developments affect to a high degree the competitiveness of companies operating in
the field of information technology. Companies that operate in the IT industry must be constantly aware
of possible differentiations and developments in existing technology and make the necessary
investments to ensure a high level of technology.
Based on the above, and for the greatest possible reduction of the risk of technological developments,
the Group:
Annual Financial Statement for the Financial Period from January 1 to December 31,
2022 (Amounts in EUR)
20
develops products in particularly efficient and internationally recognized platforms;
moves to continuous training and education of the staff in technological matters, in cooperation with
internationally recognized bodies in the field of high technology;
offers innovative applications, corresponding to the complex needs and demands of the market.
For the above reasons, this specific risk is assessed as real, but in any case as absolutely manageable at
this particular period of time.
4. Credit risk
The Management of the Company and the Group, on the basis of its internal principles of operation,
ensures that the sales of goods and services take place towards customers of high credit reliability and
lending capacity. Owing to the expansion of the activities of the Company and the Group abroad, the
said risk is real in relation to customers originating from other countries (especially from countries of
Africa, Asia and S. America) for whom the efficient check of their creditworthiness and reliability is not
always easy. For this reason the Company and the Group constantly develop and evolve internal
mechanisms of operation (regarding the process of negotiations, contracts and project management),
with the view to more completely addressing the specific danger. Within the said context and the
assessment methods available to the Group, it has not faced so far any possible exposures of significant
size, for which no adequate provision has been formed. Therefore, the said risk, although real in view of
the greater negative economic climate, is assessed today as controllable and manageable.
However, if
there is a deterioration of the conditions for the development of economic activity in the coming
months, especially in the Greek market, this risk may affect the results of the Company. Note 17 of the
financial statements provides an analysis of customer receivables.
5. Liquidity risk
The Management attaches particular importance to the management of this risk, to its monitoring by
conducting monthly and quarterly forecasts, to the continuous monitoring of cash flows and to the
continuous evaluation and reassessment of the strategy related to its effective management.
In the above context and based on the existing data, this risk is completely controllable and manageable.
However, the deterioration of the economic conditions of the global market and the reversal of the
forecasts for the expected economic growth combined with the prevailing conditions of uncertainty and
insecurity, cannot be ruled out to affect, to a controlled extent, the liquidity of the Company and the
Group.
Notes 24, 28 and 29 of the financial statements set out a table of the loans and other liabilities of the
Group.
6. Exchange risk
The Group operates internationally and is therefore at risk of exchange rates arising mainly from the US
Dollar and the British Pound. This type of risk mainly results from commercial transactions in foreign
currency as well as from net investment in economic entities abroad. The Management of the Company
constantly monitors the foreign exchange risks that may arise and evaluates any need to take relevant
measures; however, at the present time the uncertainty in the global financial environment and the
Annual Financial Statement for the Financial Period from January 1 to December 31,
2022 (Amounts in EUR)
21
fluctuation of exchange rates makes this risk real and capable of affecting the Group's results and
performance during the current financial year.
7. Interest rate risk
The Company's interest rate risk is considered to be manageable, despite the increase in bank interest
rates given that the Company has controlled exposure to bank borrowings. The Group's policy is to
maintain the total amount of borrowing at variable interest rates and to intervene correctively,
whenever necessary, and at the same time to avoid, to the extent permitted by business activity in
general, exposure to further lending.
The limited exposure of the Group to loan funds is the essential counterbalance and makes any change
in interest rates unimportant for the Group's results. It is noted that the Group's cash reserves and cash
equivalents exceed all bank loans.
8.
Risk from the effects of the spread of
COVID
-19
The COVID-19 coronavirus, which was first detected in December 2019, has had an extremely adverse
impact on both global and domestic economic growth. The impact of government restrictive measures
on entire sectors has been severe; production has been negatively affected and aggregate demand in
the economy has fallen.
Three years after the outbreak of the pandemic, the intensification of vaccination programmes in a
multitude of countries around the world has reinforced hopes for a return to economic and social
normality and a return to economic recovery, mainly from the second half of 2022.
At the present time there appears to be a decline in the phenomenon, given that there has been a near-
universal lifting of proliferation restrictions and related health protocols and there is global optimism
that within 2023 the virus will become endemic.
In view of the above and
ι
given the significant presence of the Group in the global market, this risk is
assessed as real, delays in the implementation of existing projects or assignment of new ones; however
, there is cautious optimism in both the domestic and international economic environment that the
pandemic is in remission and the situation is under control.
In any case, the Management of the Company and the Group closely monitors the developments,
evaluates and takes any measures necessary to protect the health and safety of employees and maintain
the business activities of the Group at satisfactory levels. In addition, government interventions and aid
have been used to ensure its operational continuity and uninterrupted operation and to restrict the
impact on the Group's financial situation, financial performance and results.
On the basis of the developments and the measures taken, and also the Group’s implementations in
progress, neither the Group nor any individual activity thereof, are faced at the time of drafting of the
present Report with the possibility of going concern.
9. Risks from climate change
The term 'Climate change' means global climate change due to human activities and caused mainly by
an increase in the concentration of greenhouse gases in the atmosphere.
The Company, recognizing both the risks associated with the phenomenon of climate change and its
obligations in relation to the need to continuously improve its environmental performance, follows a