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Digit

Company

Revenue millions

Assets

Owners

+ Digit

The Digit group develops technologies of digitalization of the industry, invests in products and develops the environment of industrial Internet of Things and artificial intelligence. The industries, key for the company, are the mechanical engineering, metallurgy, mountain production, an oil and gas sector and chemical industry.

"Digit" provides ready-made industry solutions in the field of predictive analytics and data analysis, optimization of technology processes, monitoring of industrial equipment and personnel.

Owners

According to base " circuit.focus ", as of 2020 through intermediate legal persons the final owner of the head company of group - Tsifra LLC - for 60.24% is Victor Vekselberg, for 24.99% — "Belfildo development of INK." (Belize) and for 14.77% — Igor Matsuk.

Earlier Tsifra LLC for 100% belonged "To Renova holding rus" which, according to Contour-Focus service, belongs to Victor Vekselberg's Renova. But since November 10, 2018 75% of the company passed to EPM Group which for 46.98% belongs "Renova an asset", under control Renova of Victor Vekselberg.

Financial Performance

2019: Revenue - 2.4 billion rubles

Consolidated revenues of Tsifra group in Russia and abroad for 2019 were about 2.4 billion rubles, her representatives in April the 2020th reported. It is 41% more in comparison with last year when the company announced turnover in 1.7 billion rubles. Export revenue reached 400 million rubles, according to the company.

Digit emphasized that grew much quicker than the market. The company brought melon analysts of IDC who expected annual average growth rate of IT market in Russia at the level of 4%, and world expenses on projects of digital transformation - at the level of 16.7%. In Russia, in particular, turnover of the company increased by 37% in relation to 2018.

The CEO of Digit Igor Bogachyov explained TAdviser that the cumulative indicator of turnover consolidates 100% of revenue of all companies entering into the Digit group including where it is not the only owner, but has control. It is so necessary by rules of the Russian accounting legislation, Bogachyov noted.

The group includes the Russian legal persons of Tsifra LLC which is engaged in artificial intelligence technologies and development of foreign business, JSC Vist Group and "Vist Mining" (solutions for mountain production), Teta Data Solyushns LLC and Tsifrovoye proizvodstvo LLC (development of the platform for an oil and gas industry and the chemical industries), Stankoservice companies and Tvins Tekhnologii LLC (products for mechanical engineering).

Two legal persons still belonging to Digit – Geonavigatsionnye tekhnologii LLC and Geomekhanicheskiye sistemy LLC founded by it – develop technologies of intellectual maintenance of drilling. Digit purchased a controlling stake of Geonavigatsionnye tekhnologii for $9 million in 2019.

"Digit" increased revenue in Russia and abroad (a photo - Digit)

According to the CEO of Digit, implementation projects of solutions AI and robotization in the industry became key drivers of growth of turnover. At the same time about 68% of sales fall on mining industry and metallurgy. The essential share is the share of mechanical engineering. The oil and gas industry also belongs to key: it generated about 17% of all revenue.

The companies which are a part of Digit it is focused at work with large customers. Among them: Rostec and its enterprises, Rosatom, Roskosmos, Almaz-Antey, from oil Rosneft, Gazprom Neft, Sibur, contractors of Gazprom, etc.

In the company gave TAdviser examples of clients with which the first in revenue projects in 2019 were kept. Norilsk Nickel, Sakhalinugol, GV Gold treat them.

Concerning business in the oil and gas industry which in 2020 experiences difficulties from sharp reduction of prices not oil the managing director of Digit Pavel Rastopshin told TAdviser that communicated with representatives of a number of the companies from this sphere recently. In a processing segment clients speak about possible reduction of investments into the equipment in 2020, but digital projects remain in their budgets so far, Rastopshin claims.

He explained that at decrease in repair and investment expenses on "heavy iron", requirements for reliability remain the same. It means that relevant are projects on implementation of the technologies allowing to monitor production process, to avoid accidents. Besides, the oil and gas industry got used to live in conditions of the fluctuating pricing therefore the entry selling price of oil of them not strongly influences, he believes.

In a segment of production it is more difficult to foretell how the situation will develop. At the moment drilling reduction insignificant, Pavel Rastopshin noted, having added that projects of Digit are not cut out from budgets of customers also here.

As for the international business, Digit has a legal person in Kazakhstan, responsible for work in the Asian market, in the Republic of South Africa, Morocco, Italy, Chile and also representations in Finland and India. But the company is present at the majority of the countries through partners, without own offices.

Abroad the largest for themselves the market in the company call India. Among clients of Digit in this country – the Indian railroads. In India "The intellectual pit" with the largest Indian operator of the Thriveni Earthmovers mines is also implemented. According to representatives of Digit, it has a considerable part of projects in Turkey and Finland.

Pavel Rastopshin in a conversation with TAdviser noted that yet not all products of Digit are presented at international markets, but in 2020 the company expects to expand a product line which offers foreign customers.

Data also brought TAdviser into the companies that the staff of Digit in 2019 extended up to 770 people. In 2018 it made about 450 people. "Digit" employed mainly software developers and employees on business development and sales.

Igor Bogachyov told TAdviser that earlier at the end of 2020 their group planned a turnover gain to 3.5 billion rubles, but taking into account the developing situation in the company do not know what it will be.

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From experience of last crises I can tell that demand for digitalization grows rather, but does not fall at such moments. Especially it concerns the industry, the real sector. The enterprises aim to gain economic effect irrespective of an economic situation, and in crisis - is even stronger. Effects and increase in productivity depend on organizational measures, upgrade of the main production. The last requires large investments which are difficult for expecting against the background of economic downturn. There is a digitalization of the existing production chains where a payback period of projects rather small. In this sense we look with a positive for 2020, - Bogachyov in a conversation with TAdviser noted.
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The CEO of Digit added that in 2019 the state actively started different programs of support of digital economy and digitalization in general. Stimulation and speed of digital transformation of the enterprises are more likely today that element which plays into the hands of IT producers.

History

2019

Strategy Partners and Tsifra Group will develop universal scenarios of digitalization for industrial enterprises

On December 5, 2019 between Strategy Partners and Tsifra Group the agreement on strategic partnership was signed. From Tsifra Group the document was signed by the CEO Bogachyov Igor Vadimovich, from Strategy Partners company — the managing partner Idrisov Alexander Borisovich.

Acquisition of a controlling stake of Geonavigation technologies for $9 million

On September 19, 2019 the Tsifra company announced TAdviser that it purchased for $9 million a controlling stake in the Geonavigation Technologies company working under the Geosteering Technologies brand. Read more here.

The agreement with BelAZ and VIST Group for the purpose of robotization of mining industry

On July 10, 2019 it became known that the Mogilev Automobile Plant, one of producers of the career equipment, the Tsifra company specializing in industry digitalization and the developer of technology of deserted extraction of solid minerals VIST Group, signed the strategic partnership agreement. The parties agreed jointly to develop technologies of robotization for mining industry and also to create based on the plant the research center for innovations in the field of artificial intelligence and autonomous transport. Read more here.

2018

Revenue - 1.7 billion rubles

Revenue of Tsifra group for 2018 made about 1.7 billion rubles. The company announced such result in February, 2019. Tsifra specified TAdviser that this indicator includes turnover of the head company - Tsifra LLC, the companies in which she owns a share directly and their child legal persons and also foreign sales. Abroad Tsifra works through the Finnish office, a contribution of export business to a total turnover of group, according to the company, insignificant so far.

By the end of 2018 Digit had shares in 3 legal persons: JSC Vist Group - developer of solutions for the mining industry, ITs Stankoservice LLC - developer of solutions for monitoring of industrial equipment Manager, and Teta Data Solyushns LLC who specializes in forecasting and optimization of technology processes, simulation modeling and processing of Big Data.

By the end of 2018 not all these companies belonged to Digit for 100%. However the general indicator of revenue in a year includes their complete revenue, specified TAdviser in Digit.

Victor Vekselberg's structures invest in digital assets (a photo - sk.ru)

The company purchases these legal persons according to the transhevy scheme. Digit told TAdviser that at the end of 2018 the transaction on acquisition more than 50% of Vist Group was closed, and fully it is going to finish acquisition of the company in 2020. In ITs Stankoservice Digit possesses about 70% in authorized capital, the first tranche was carried out in 2017. In "the Theta Date of Solutions", according to the USRLE, belongs to Digit 99% of the company. At the same time 1% "the Theta Date of Solutions" owns Igor Bogachyov, the CEO of Digit.

Overwhelming part of revenue to Digit in 2018 was brought by Vist Group, reported TAdviser in the company. Its deposit to turnover is in the lead from other companies with a big separation.

Exact breakdown of revenue by legal persons of group for 2018 in Digit could not provide TAdviser, having noted that after final calculations it will be available in April, 2019.

In 2017 consolidated revenues of Digit and the companies in which it invested directly including their "daughters", were about 1.27 billion rubles, counted TAdviser on the basis of data on financial results in Contour-Focus base. Here revenue from foreign markets and revenue of 100 percent "subsidiary" of ITs Stankoservice of Tvins Tekhnologii LLC is not included. Activity of the last is connected, mainly, with marketing, but not development of solutions therefore its revenue was not considered, the representative of the company explained TAdviser.

On the companies in 2017 revenue was distributed as follows:

  • JSC Vist Group - about 1.188 billion rubles
  • Tsifra LLC - 7.497 million rubles
  • Teta Data Solyushns LLC - 4.3 million rubles
  • ITs Stankoservice LLC - 82.0 million rubles
  • Revenue of the Vist Mining Technology LLC company founded by Vist Group for 2017 in base of Rosstat is unavailable.
  • Revenue of Tsifrovye tekhnologii LLC (100% the founder - ITs Stankoservice) - the system developer of monitoring of production "Manager", in base of Rosstat was unavailable too.

Thus, growth of turnover of the companies of group in a year can be estimated at the level about 33%. As well as in 2018, an overwhelming part of revenue in 2017 fell on Vist Group.

According to joint survey of TAdviser and Rostec, the volume of the Russian market of industrial Internet of Things (Industrial Internet of Things, IIoT) on which Digit is mainly focused, in 2017 was 93 billion rubles, in 2020 its volume will grow to 270 billion rubles. Almost at 50% of respondents of a research of investment into this sphere grew. Most the enterprises which already began similar projects, investments into IIoT in 2018-2019 at least were going to increase by 15–20%.

From the planned 6 billion rubles of investments into business development and purchase of the companies, by the end of 2018 Digit spent about 3 billion, also brought data into the companies. From them 2 billion rubles fell on purchase of Vist Group.

On the presentation of results of work of Digit in 2018 representatives of the company also reported that in Russia solutions of the companies which are a part of group use more than 270 enterprises. The majority of these contracts were signed before entry of developers of solutions into the Digit group. Digit specified TAdviser that from the moment of investments into the companies, for last year it had "several dozens" of new clients.

The CEO of Digit Igor Bogachyov noted that Digit not only is engaged in development and sales of the solutions developed by the companies purchased by it but also develops own solutions, for example, in the field of artificial intelligence and machine learning. For this purpose the group created the special development team consisting of several tens people.

For example, in a year in the "digital plant" direction four solutions for operational production management for the process industries were developed. They were registered on Theta Date of Solutions company.

According to Bogachyov, in group about 450 employees in total work. From them about 50 are engaged in foreign business.

In 2018 Digit began work in the markets of Finland, China, Russia, Bulgaria, Romania, Singapore, Morocco, India. Generally she expects deliveries of monitoring systems of industrial equipment, the recommendatory systems using artificial intelligence and also solutions for digitalization of the mountain enterprises, including pilotless transport there.

As envisioned by the company, in 2019 foreign business should bring it about 15% of all revenue with the main focus to Asia and Latin America. Investment volume into the international development in 2019 is planned in the amount of 230 million rubles.

Purchase of the developer of industrial software of VIST Group for 2 billion rubles

On November 16, 2018 it became known of sale of the developer of industrial software of VIST Group of Tsifra company which belongs to Renova of the businessman Victor Vekselberg. The Vedomosti newspaper with reference to the representative of Tsifra and the director of the strategy of VIST Group Alexey Vladimirov writes about it. Read more here.

Transition under 75% control of EPM Groups

In November, 2018. "Digit" passed from complete property "Renova holding rus" under 75% control of EPM Groups which for 46.98% belongs "Renova an asset". And "To Renova holding rus", and "Renova an asset" are under control of Victor Vekselberg's Renova.

Acquisition of an IT startup of Theta Data Solutions

The Tsifra company announced on September 27, 2018 acquisition of a startup of Theta Data Solutions. This transaction, along with hiring of the employees participating in the largest Russian projects in the field of industrial AI is designed to strengthen the Digits direction on artificial intelligence. Read more here.

Investment of 1 billion rubles into production digitalization

In February, 2018 it became known of plans of Digit to invest up to 1 billion rubles in integration of solutions of industrial Internet of Things. The company wants to create the new system using artificial intelligence intended for implementation of IT in production for the enterprises.

According to TASS with reference to the development director of the international business of Digit Andrey Lovygin, in 2017 the company acquired the rights to a monitoring system of industrial equipment of Foreman (St. Petersburg) and also Manager invested in the similar Smolensk automated information system (AIS).

"Subsidiary" of Renova invests 1 billion rubles in production digitalization
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Until the end of 2020 Digit will enclose up to 1 billion rubles on completion of these systems and integration. A project objective — to provide to industrial holdings the system of new generation with artificial intelligence for production digitalization — Lovygin told.
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According to him, connection of two systems from St. Petersburg and Smolensk to monitoring covers the biggest park of industrial equipment in Russia — more than 3.6 thousand machines in 140 enterprises for all Russia.

Implementation of digital technologies on industrial enterprises promotes growth of load factor of the equipment by 10-25% for several months of operation. At the expense of it planning process improves and interaction of all services at the enterprise therefore the companies can lower purchase costs of additional technology equipment accelerates and increase performance, Andrey Lovygin noted.

According to the managing director of Digit Pavel Rastopshin, a lack of industrial data — the main barrier to industry digitalization.

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In Russia no more than 10% of machines are connected to industrial Internet of Things today, this quantity annually doubles. Implementation of monitoring systems allows to increase performance of industrial enterprise at least by 10%, and on average for 25%, and the solution less than in 12 months pays off — he told.[1]
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2017

Entry into the market of Finland

The Tsifra company specializing in development of IIoT and solutions AI in November, 2017 announced opening of the European headquarters in Helsinki, Finland and also signing of the partnership agreement with the Finnish resseler of industrial equipment and software of Cron-Tek Oy.

As noted, joint efforts of Digit and Cron-Tek will be directed to promotion of digital products for optimization of work of industrial enterprises of Finland.

In the market of Finland Digit intends to propose complete solutions on the basis of artificial intelligence technologies and industrial Internet of Things for the industry, metallurgy, power, an oil and gas sector and health care. Especially for the European enterprises the data center in the territory of Finland is constructed. The chairman of the board of directors of the company is the Finnish entrepreneur Pekka Wilyakeinen.

The product portfolio Digit as of November, 2017 consists from:

  • MDC solutions for monitoring of the different industry equipment and personnel;
  • Own IIoT-platform;
  • Predictive analytics for ensuring control of industrial equipment, increased security and expense reduction on service;
  • Digital advisers.

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We have a strong international team, own R&D-центр and ready-made products and also experience of projects implementation of digitalization for international industrial enterprises. We will use all these advantages to providing flexible and productive solutions to the European clients — Igor Bogachyov, the CEO Digit commented on an event.
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Laboratory for application studies in the field of AI

In October, 2017 within the forum "Open Innovations" in Skolkovo the Skolkovo institute of science and technologies (Skoltech) and the Digit company, specializing in development of artificial intelligence technologies for the industry and health care, signed the agreement on creation of joint laboratory in the field of intellectual production and industrial Internet of Things. The laboratory is created as the international university competence center aimed at research and development of AI technologies for the capital-intensive industries, in particular, of the industry. Read more here.

Creation

In September, 2017 it became known of creation of Tsifra subsidiary company by Renova which will be engaged in development of technologies of industrial Internet of Things. The planned volume of investments in these developments — 6 billion rubles, write Vedomosti.

"Digit" the former director of an IT cluster headed Skolkovo and the Russian office SAP Igor Bogachyov. The new company will develop TEConts of the equipment (for example, turbines), "smart" agriculture and prediction of product quality. Own products will both be created, and to be financed someone else's projects.

The company already invested in a monitoring system of industrial equipment Manager. Transaction amount is not disclosed, however it is known that investment volume by the end of 2019 will be 850 million rubles.

Renova invests 6 billion rubles in industrial Internet of Things

As Igor Bogachyov reported, Digit will invest in the products in those segments where there are no technologies yet. About 3% of the enterprises in the world use products of industrial Internet of Things (in Russia — about 1 %), their implementation will allow to increase global GDP more than by a quarter, Bogachyov gives these researches McKinsey.

In the National center of informatization (NCI; enters into Rostec) consider that industrial Internet of Things will not gain distribution until the enterprises do not realize economy which is provided by these technologies. But by 2020-2021 the size of the market of such products can reach 20 billion rubles so to Digit will where invest, the representative of NCI predicts. According to him, by September, 2017 in Russia there are already companies with turnover to 400 million rubles which solve relevant problems of the industry.

The NCI just develops technologies of the industrial Internet. Rostec intends to implement these solutions and also to sell them to clients, the representative of state corporation told the edition.

Notes