IBS Group Holding

Registered in sharp Maine, IBS Group Holding until 2014 combined the assets of the Russian group IBS and Luxoft, which operates on the international market. Shares of IBS Group Holding were traded on the Frankfurt Stock Exchange. In November 2014, the group's shares were converted - minority shareholders of IBS Group received in exchange for their securities part of Luxoft shares owned by IBS, and the founders of the group Anatoly Karachinsky and Sergey Matsotsky consolidated 100% of IBS Group Holding, which, as of February 2016, owns 37% of Luxoft shares. Karachinsky and Matsotsky began to own Russian assets directly.

History

2022

Next IPO rescheduling

In early December 2022, it became known about the next - already the third - postponement of the initial public offering of shares (IPO) of the IBS group. According to CEO Grigory Kocharov, the listing is the main source of funds for the development of the company, but whether it will be an exchange placement or some other instrument, it does not matter.

We are also considering the arrival of a strategic investor or the attraction of an investment fund. Throughout the history of the company, we have repeatedly conducted such negotiations. So far, negotiations are temporarily not underway with anyone. We must wait two or three years. The company has enough of its own funds for development, "he said in an interview with RBC.

According to Kocharov, IBS hopes to hold an initial public offering on the Moscow Exchange in 2025-2026.

IBS initially announced plans for an IPO in 2018. Then it was about the possible sale on the trading floor of 30-35% of IBS shares. This could bring the company $100 million, the agency estimated. Reuters The company planned to spend the proceeds to expand its line of services through organic growth, as well as mergers and acquisitions. However, then, due to the crisis, it was decided to postpone the IPO to 2023.

When we were preparing for 2023, February 2022 suddenly came, and we had to postpone everything again, "Kocharov said in early December 2022.

In addition, the IBS CEO noted that now they live short periods of forecasting, and the forecast for more than a year is a "fantasy" and a "chromatic dream."

But two or three years will pass, everything will calm down a little, and it will be possible to look a little further beyond the horizon and plan where to move on, - said Kocharov.[1]

Create a list of countries from which employees cannot work remotely

In early December 2022, it became known about the formation IBS of countries in the list from which employees cannot work. The "prohibited" states include those that have a negative attitude towards Russia, have imposed sanctions on Russian companies or are part of NATO or, the European Union RBC company's CEO explained. Grigory Kocharov

According to him, all IBS employees who left for prohibited countries had to return to Russia by November 10, 2022, otherwise they would be fired.

In addition to "prohibited," the IBS provides for categories of "permissible" and "friendly" countries. The latter include states friendly to the Russian Federation, and the "permissible" states are neutral towards Russia.

Everyone who left for the permissible territories must decide by January 1 [2023] what they will do next - they will remain there, move to Russia or to the permitted territory. If they remain in acceptable territories after January 1, then we will be forced to fire them. We also try to return those who are in the permitted territories to Russia or at least make their trip temporary, "Kocharov said.

He also noted that less than 1% of the total number of employees of the company left. Half of those who left made such a decision based on "their own fears or fears," Kocharov believes.

Some were afraid of mobilization. The guys got into a crisis for the first time, got scared, ran away. It's unpleasant, but humanly, probably understandable, "he said.

Kocharov also claims that some workers left the country for reasons unrelated to Russia's special military operation in Ukraine.

The girl's husband received a career promotion, he was transferred to the company's office in another country. What should I do? The spouse goes after her husband. And this may be a country that does not treat Russia very well. What is it now - to break the family? We consider some of the cases on a case-by-case basis and find solutions by helping employees. Of course, caring for parents or restoring a family is an important reason, probably even more important than the company's position on which country is allowed, which is prohibited, "he summed up.[2]

2019

Luxoft sale for $2 billion

On January 7, 2019, US IT services provider DXC Technology announced the acquisition for $2 billion of Luxoft Holding, a subsidiary of IBS Group Holding. According to the terms of the deal, the main owners of Luxoft Anatoly Karachinsky and Sergey Matsotsky receive $655 million for their share. More on the deal here.

Sale of Medialogia to VTB Bank

In January 2019, it became known that VTB acquired from IBS Group Holding a 63% stake in Medialogia, which is the developer of the media monitoring and analysis system. This is evidenced by the data of SPARK^[3]More on the deal here.

2014

Revenue growth to $903 million

IBS Group Holding presented the results of the 2014 financial year (ends March 31 of this year). The revenue of the entire holding increased by 3.8% to $903.6 million. At the same time, revenue from the system integration segment (that is, from the Russian company IBS, which is engaged in system integration) decreased by 11.2% over the year to $429.8 million.

In ruble terms (that is, excluding the depreciation of the ruble against the dollar), the fall was less: by 5.1% to 14.29 billion rubles^[4]

At the same time, revenue from offshore programming - Luxoft - grew by 26.6% to $398 million.

If we consider the revenues of IBS Group by geographical segments, then in Russia revenue decreased by 10% to $521 million. This fall is associated with a decrease in revenues from system integration. In Europe, revenue grew by 27.1% to $190.3 million, in North America - by 35.6% to $192.1 million.

IBS Group President Anatoly Karachinsky explains the decrease in revenues from Russian business in the field of system integration by a change in the needs of corporate customers associated with the emergence of new technologies: cloud services, mobile solutions, big data, etc. Moreover, this process, according to him, coincided with the difficult situation in the Russian economy.

In this regard, IBS Group began reorganizing its Russian business in order to reduce costs and increase efficiency. This process, according to the company's plans, will take 1-2 years.

The reorganization has already led to a reduction in personnel: over the year, the number of employees working in the field of system integration decreased by 7% or by 171 people - to 2.23 thousand.

Delisting from Frankfurt Stock Exchange

In July 2014, it became known that IBS the Group offered its minority shareholders to exchange their securities for shares of its subsidiary, an offshore developer. software Luxoft For one share or one global depositary receipt (GDR) for shares of IBS Group, 0.9 shares of Luxoft will be issued from a block of shares owned by IBS Group^[5]

As of July 13, 2014, one GDR IBS Group cost 23 euros ($31.3), one Luxoft share - $37.3. Thus, the proposal assumes a 7% premium to current quotes. Luxoft's capitalization is $1.22 billion, while the IBS Group's capitalization is only 503 million euros ($685 million).

Through the swap, IBS Group shareholders will receive more liquid Luxoft shares with high growth potential. In addition, as noted in the company's message, Luxoft shares do not depend on the indicators of the Russian business owned by IBS Group in the field of system integration.

Luxoft shares are divided into two types: class "A" and class "B." One class "A" stock has one vote. One share of class "B" - 10 votes, but such shares cannot be sold: in the event of a sale, they will be automatically converted into shares of class "A" with a coefficient of 1:1.

IBS Group owns shares of Luxoft class "B." But, in connection with the transfer of them to minority shareholders, they will be converted into class "A" shares. The exchange will involve 23.5% of Luxoft's total shares. If the exchange takes place, the voting share of IBS Group in Luxoft will decrease from 91.4% to 83.7%, economic - from 68.6% to 45.2%.

As of July 2014, GDRs representing 36.5% of IBS Group shares are in free float. If the exchange is successfully completed, IBS Group will de-list from the Frankfurt Stock Exchange. The company itself will be fully owned by its founders: President and Chairman of the Board of Directors Anatoly Karachinsky and Vice President, Head of IBS System Integrator Sergei Matsotsky.

As of July 2014, Karachinsky owns a 4.9% stake in IBS Group directly and 33.6% through offshore BXA Investments. Another 19.5% of the shares belong to him along with Matsotsky through the Croyton offshore. Shares of offshore companies Croyton and BXA Investments will not be involved in the share swap. Another 11% stake in IBS Group is owned by the company itself through Evesham and Global Web Technology, they will also not participate in the share exchange.

The conversion requires approval from at least 75% of IBS Group shareholders and approval from the Isle of Man court on which the company is incorporated.

The exchange scheme was approved by shareholders and implemented in November 2014, after which GDR was delisted from the Frankfurt Exchange. The controlling shareholders (BXA Investments and Croyton Limited) did not participate in the exchange and became, upon completion of the transaction, the sole shareholders of the group.

Help in translating Coursera training courses into Russian

In October 2014, IBS provided financial and expert support to the Coursera course translation project. Now courses in Data Science specialization at Johns Hopkins University are available with Russian translation (subtitles). According to IBS, several tens of thousands of dollars were invested in the transfer.

IBS HR Services

Since 2014, IBS has been operating a division providing services in the field of fully functional HR process outsourcing (IBS HRO). Clients have access to services such as HR outsourcing of transactional processes, outsourcing of mass hiring, HR transformation according to the model of combined services (SSM/MOS), as well as an access service (SaaS) to various technological platforms.

The IBS HRO business is based on IBS's long-term expertise in the field of HR process automation, a carefully selected portfolio of technologies (professional HR process management system, accounting recruiting system, analytical platform), as well as a strong methodological expertise in the field of modeling and automation of HR processes, hiring mass personnel, HR analytics.

For IBS HRO customers, there is a joint HR service center (HR service center), whose specialists promptly and efficiently provide personnel accounting, payroll, mass recruitment, processing employee requests and other transactional processes. In order to support the HR-service business, our own information and technical infrastructure has been deployed, including a data center that ensures high standards of information security and personal data protection.

2013

3rd Financial Quarter: IBS Group Revenue Slows Down Sharply

On March 4, 2013, IBS Group reported its financial results for the nine months of the financial year ending March 31, 2013 and the 3rd quarter of that period. The company's consolidated revenue for the nine months increased by 6.1% compared to the same period in 2011 and amounted to $672 million. Excluding the financial performance of the Borlas division (split from IBS in February 2012) from the results of the financial year ended March 31, 2012, the group's revenue growth was 11.6%. For the previous same period, revenue growth rate was 25.7%.

The IT services segment for the reporting period brought IBS $390.5 million, an increase of 10.6% excluding Borlas revenue for 2011 (by 1.6%, including it). In the same period in 2011, this segment showed an increase of 25.2%. In IBS, the main sources of revenue growth for this segment in the reporting period are projects in the field of IT infrastructure.

The IBS software development business also more than halved its growth rate: revenue in this segment amounted to $228.5 million, an increase of 15.1% against 37.9% growth from April to December 2011. Here, industries such as the automotive industry, transport and financial services showed the fastest growth, IBS notes.

"In the software development segment, we see a revival in customer demand in the financial vertical, which we associate with the end of the turbulence period in the financial markets," says IBS President Anatoly Karachinsky. "Moreover, we see that the segment's high business growth rate is in line with the growth rate of the global offshore programming market

."

IBS showed the highest growth rates for the reporting period in the United States, where it increased by 20.8% to $104.9 million. Turnover in Europe increased by 9.9%, reaching $109.5 million, and in Russia - by 2.4% to $457.6 million. Total IBS debt for nine months decreased by $1.5 million to $54.3 million.

Anatoly Karachinsky calls the overall results of the group satisfactory and points to the general slowdown in the IT market in 2012. According to IDC, it turned out to be a record low in recent years, amounting to only 3.9%. This negatively affected the results of the IBS IT services segment, says the group president.

IBS staff during the reporting period increased by 482 people, to 8.473 employees. The vast majority of newcomers were software developers, whom the company recruited mainly to its development centers located in Ukraine, Poland and Romania.

"These countries today are the most attractive areas for the development of development centers in connection with the current market conditions for IT specialists in terms of the availability of a sufficient number of specialists in the market, their qualifications and personnel costs," IBS spokesman Yevgeny Kutilov told TAdviser.

In terms of IBS results for the 3rd quarter of the fiscal year ending March 31, 2013, the group's revenue for this period was $294.1 million, an increase of 6.3% over the 3rd quarter of the 2012 fiscal year. The growth of turnover in the service segment during this period amounted to $189.7, demonstrating an increase of 1.4%, software development - $83.3 million, an increase of 17.9%.

Cloud Solution Partnership with Parallels

In March 2013, IBS and Parallels entered into a partnership agreement to develop and promote a cloud solution for building enterprise virtual desktop systems (VDI). The companies invested $1.2 million each. The cooperation is designed for four years.

Fiscal revenue -6.6%, aggregate debt up $14 million

Key figures for the full financial year ended 31 March 2013

• The Group's consolidated revenue increased by 6.6% year-on-year to $870.5 million. USA Year-on-year revenue growth on a comparable basis * was 10.9%.
•  Revenue in the IT services segment increased by 1.5% compared to the previous year and amounted to $483.8 million. UNITED STATES. Revenue growth on a comparable basis * in the IT services segment amounted to 8.6% in dollar terms and 11.1% in ruble terms.
•  Revenue in the software development segment increased 16.0% in dollar terms and 18.9% in constant currency to $314.6 million. UNITED STATES.
•  Revenues from operations in Europe and North America reached $291.2 million. We accounted for 33.5% of the Group's consolidated revenue (compared to 31.4% a year ago).
•  The Group's total headcount reached 8,597 due to the increase in headcount in the software development segment.
•  Total debt increased by $14.0 million year-on-year. US $56.5 million UNITED STATES. Net debt increased by $17.4 million compared to the previous year. US $41.4 million UNITED STATES.

Revenue on a comparable basis is based on revenue for the fiscal year ended March 31, 2012 ("FYE March 31, 2012") that does not take into account the results of Borlas Group LLC.

The Group's consolidated revenue for the full financial year ended 31 March 2013 increased by 6.6% year-on-year to $870.5 million. UNITED STATES. Consolidated revenue, adjusted for assets sold, posted a 10.9% year-on-year increase. As a result of the increase in revenue in the software development segment, consolidated revenue for the fourth quarter of the fiscal year ended March 31, 2013 increased by 8.3% compared to the same period last year to $ 198.4 million. UNITED STATES.

Revenue in the IT services segment for the full fiscal year ended March 31, 2013 was $483.8 million. The United States, which is 1.5% higher than the previous year. After adjusting revenue in the segment by excluding from the calculations the indicators of Borlas Group LLC, which increased revenue for the corresponding period by $31.2 million. In February 2012, the Group exchanged 100% of the shares of Borlas Group LLC for 14.09% of the shares of the Group's subsidiary, IBS IT Services, increasing its share of actual ownership of the Company's shares to 97.02%. Revenue in the segment for the fourth quarter of the fiscal year ended March 31, 2013 amounted to $ 93.4 million. The United States, which is 1.1% higher than the same period last year. The revenue of Borlas Group LLC did not affect the growth indicators in the IT services segment in the fourth quarter of the fiscal year ended March 31, 2012.

Revenue in the software development segment for the full fiscal year ended March 31, 2013 was $314.6 million. USA, which is 16.0% higher than the previous year. Revenue in the segment for the fourth quarter of the fiscal year increased by 18.4% compared to the same period last year and amounted to $ 85.9 million. UNITED STATES. Revenue in the constant currency * segment increased by 18.9% and 19.5%, respectively, compared to the previous year and the fourth quarter of the fiscal year ended March 31, 2012.

Revenue from operations in Russia for the full fiscal year ended March 31, 2013 reached $579.3 million. The United States, which is 3.4% higher than the previous year. Revenue from operations in Europe reached $150.4 million. (7.7% higher than the previous year) and accounted for 17.3% of the Group's total revenue. Revenue from operations in North America reached $140.8 million. (20.7% higher than the previous year) and accounted for 16.2% of the Group's total revenue.

The total number of employees of the Group as of March 31, 2013 amounted to 8,597 people. The number of IT employees in the software development segment amounted to 5,846 people, which is 592 people more than at the end of the last fiscal year, and 175 people more than at the end of the previous quarter. The number of IT employees in the IT services segment decreased to 2,397 due to the restructuring and sale of the IBS Group subsidiary Expertek IBS in July 2012.

The Group's total debt as at 31 March 2013 was $56.5 million. US, which is $14 million. The United States is higher than last year and by $2.2 million. The United States is higher than the previous quarter. Net debt amounted to $41.4 million. US, which is $17.4 million. The United States is higher than last year and by $28.5 million. The United States is higher than the previous quarter. The increase in net debt at the end of the year was caused by an increase in the working capital of both subsidiaries of the Group, and at the end of the quarter - by a seasonal factor.

Finalization of the development of a unified portal of state statistics

In June 2013, IBS created a single Internet portal of state statistics. At the end of 2011, a competition was announced for the creation of a single portal of state statistics, the winner of which was the proposal of the IBS group.

Crowdsourcing partnership with Witology

In August 2013, the IBS group of companies and Witology, specializing in the development of crowdsourcing solutions, became partners in order to create a tool for large-scale search and selection of employees.

Interaction platform for Russian universities

In September 2013 IBS , she created a platform for interaction between universities and large companies in the field of creating and introducing innovations for. Ministry of Education and Science Russia

2nd Financial Quarter: Revenue from IT services shrank sharply

In early December 2013, IBS Group reported preliminary unaudited results for the second quarter of the financial year ended September 30, 2013 and the first half of the financial year ending March 31, 2014.

The total revenue of the holding in the second quarter amounted to $208 million, showing a decrease of 2.2%. At the same time, in the IT services segment, it decreased by 24% to $92.9 million, while in the software development segment, on the contrary, it increased by 31.8% to $97.7 million. According to the results of the first financial half of the year, the company announces a decrease in revenue of 1.1%, to $373.6 million, in the IT services segment - 20.9%, to $158.9 million, and the growth of the software development direction - 25%, to $181.4 million.

The growth in the software development segment is facilitated by the use of modern technological developments, the successful attraction of a number of customers with high potential, the growing demand for IT outsourcing in the financial and automotive industries, as well as investments in the development of existing solutions, IBS explains.

Two opposite trends are cited as the reason for the reduction in turnover in IBS: "on the one hand, the unstable IT market in Russia, and on the other, the growing demand for outsourcing IT services in the world."

"Difficulties in the IT services segment are associated with a difficult situation in the Russian IT market, where corporate clients are reducing investments, including in large IT projects, which is caused by economic instability," explains Anatoly Karachinsky, President of IBS Group. "This is especially felt in the field of business application implementation, while in the field of IT infrastructure development, the results are quite consistent with our expectations."

Despite the weak financial results of the IT services segment in the first half of the financial year, IBS expects that the growth of consolidated revenue for the entire year will be 2-5% in dollar terms.

IBS revenue from operations in Russia for the first half of the financial year was 16.3% lower than in the same period last year. Revenue in Europe reached $87.0 million, an increase of 24.1% and reached 23.3% of the group's total revenue, and revenue from operations in North America increased to $85.5 million, or 22.9% of the group's total revenue, an increase of 26.8%.

"The growth of consolidated revenue outside Russia is associated with the expansion of activities in the software development segment," IBS explains.

The total declared headcount of IBS for the first half of the financial year ending March 31, 2014 is 9,509 thousand people with a net increase of 700 people due to the involvement of new IT specialists.

2012

Revenue growth in fiscal 2011 by 24%

Final results of fiscal year 2011:

• Consolidated revenue grew 24% from the previous year dollars to US $816.3 million.

• Consolidated EBITDA increased 55% to $79.6 million and EBITDA margin increased from 7.8% to 9.8%.

• The group's net income rose 59% to $40.9 million and net profit margin rose from 3.9% to 5.0%.

• Net debt fell to US $24 million, a decrease of US $7.7 million from the previous year.

• The number of employees increased by 12%, to 8,252 people.

(USD million)	Years Ended		Change,%
	March 31, 2012	March 31, 2011
IT Services Segment	476,7	389,8	22%
Сегмент разработки software	271,1	198,4	37%
Other revenue and exclusion of intragroup turnover	68,5	69,1	(1%)
Consolidated Revenue	816,3	657,3	24%

Earlier, announcing the preliminary results of fiscal year 2011, the company reported that in Russia revenue growth amounted to 20%, which corresponds to the total increase in revenue in the IT services segment in fiscal year 2011, revenue amounted to $556.1 million for 2011.

The group IBS showed the best results in where To Europe revenue for fiscal year 2011 increased by 44% compared to the previous year and amounted to $187.9 million.

The company earned another $72.1 million in 2011 in North America. However, the change in the share of regions in the total revenue for 2011 compared to 2010 has changed by no more than 1-3%.

The cost of IBS Group is $600 million.

As of June 2012, according to Uralsib Capital, the fair value of IBS Group is $600 million. At the same time, 87% of this amount falls on Luxoft, and only 13% - on the system integrator. Analysts attribute the low estimate of the IT services segment to the limited revenue growth potential of the company in this direction.

"IBS

Group's business consists of two segments whose growth factors, risks and trends are different. Luxoft specializes in outsourcing software development, focuses mainly on export markets and shows high growth rates. Luxoft in 2010 accounted for about 71% of the group's EBITDA, and in 2011 - about 33% of revenue (the company has not yet released the full financial report for 2011), "Uralsib said in an analytical note.

"On the other hand, the IT services segment (58% of revenue in 2011 and 29% of EBITDA in 2010) is focused on the domestic market, and it is characterized by a downward trend in profitability against the background of increased competition in the long term," analysts continue. "In addition, the departure of several key managers from the company at the end of 2011 had a negative impact on this division (in the IT services business, the issue of personalities can be of great importance)."

According to Uralsib Capital, the IBS Group has limited revenue growth potential from IT services, since many leading Russian companies have already begun to implement SAP and Oracle solutions, which the company specializes in. "In favor of our opinion, 38 of the 50 largest Russian companies already use the group's IT services. Thus, IBS will not be able to attract a large number of new customers in this segment, "analysts add.

The average EBITDA margin of Luxoft in the period up to 2015, according to Uralsib Capital, will be 22.1%, while the same indicator in the IT services segment for the same period will be at the level of 6.5%. If Luxoft's listing is obtained, investors will be able to invest in the best part of the IBS Group business directly, analysts said.

The cost of the entire IBS Group in Uralsib Capital is estimated at $600 million (capitalization as of June 2012 is $492 million). Luxoft's contribution to the group's total value is $519 million (87% of the total). Now, we recall, IBS owns 86% of Luxoft. Analysts estimate the cost of the entire Luxoft at $604 million^[6].

Growth in the profitability of foreign business and the fall of Russian

IBS Group presented the results for the 1st quarter of fiscal year 2012 (ended June 30, 2012).

The group's consolidated revenue decreased 2.5% to $165.4 million. The fall in revenues in the company is explained by the volatility of exchange rates in the countries of the group's presence and the deconsolidation of non-core business in the IT services segment.

Revenue from operations outside Russia grew to $66.9 million and accounts for 40.5% of the group's consolidated revenue, although last year this figure was 3.6%. IBS TAdviser said the company has been consistently pursuing a strategy for years to diversify the business, including by geography. "This makes it possible to reduce the dependence of our results on changes in the economic situation within Russia. We consider the outstripping growth of the foreign business segment to be evidence of the successful implementation of this strategy, "the company concluded.

The company's total headcount in the 1 quarter of 2012 fiscal year grew by 9.6% to 8363 employees due to the expansion of the network of development centers in the software development segment in Eastern Europe.

Cumulative debt decreased by $3.1 million year-on-year to $62.4 million, while net debt was unchanged at $40.9 million.

The Company maintained its forecast for fiscal year 2012: revenue growth of 9-15%. The company's fiscal year 2012 ends on March 31, 2013.

In the structure of revenue, the IT services segment decreased by 15.2 to 78.5 million dollars, and in ruble terms increased by 0.9%. "In February 2012, the group closed the transaction, as a result of which the ownership share in the IT services segment increased by 14.09% and reached 97.02%, and Borlas Group LLC was deconsolidated," IBS Group said in a statement. The company predicts segment growth in the range of 6-12%.

At the same time, the software development segment grew by 14.9% to $71 million, due to the stable demand of Western European and North American clients for highly qualified software development services. "Revenue growth was achieved in several key industries, including in telecommunications, high technology and automotive industries, however, it was partially neutralized by the depreciation of the euro against the US dollar in the corresponding quarters," the company said. According to forecasts, this segment will show 18-23% growth by the end of the year.

'Amid the economic uncertainty that remains in the markets of Europe, the United States and, as a result, in Russia, the growth rate of the IT market is slowing down. However, this slowdown has already been taken into account in our forecasts, so the results of the 1st quarter are within the planned indicators. The software development segment continues to grow at a double-digit pace, reflecting a long-term trend focused on the use of an offshore IT consumption model by international companies. At the same time, if the instability in the economy increases, then the slowdown in growth in this segment may become more tangible. The performance of the IT services segment was influenced by the volatility of the RUB/USD exchange rate and the deconsolidation of non-core business, while on a comparable basis, the segment's revenue in rubles remained stable, "said Anatoly Karachinsky, President of the IBS Group

.

Expertek sold to Maykor for 5% of its shares

In July 2012, the IBS group of companies sold Expertek IBS (gas station network automation business) to Maykor Group (Service Holding Company LLC). The sale took place by exchanging 5% of Maykor Group shares.

Record dividends

On August 2, 2012, the Board of Directors of IBS Group Holding recommended that the General Annual Meeting of Shareholders (to be held on September 5, 2012) pay dividends for fiscal year 2011 (ended March 31, 2012) in the amount of $0.96 per share.

This is a record dividend of the group. At the end of the 2010 financial year, shareholders approved payments in the amount of $0.2 per share, and for the 2009 financial year - $0.15 per share.

The authorized capital of the company consists of 24,855,244 ordinary shares with a par value of 0.01 pounds. Dividends are paid on 22,955,244 shares. Thus, the amount of payments can be $22.037 million. The company's net profit for fiscal year 2011 rose 59% to $40.9 million.

The IBS told TAdviser that the growth in the expected dividend is primarily due to the high performance of the company and its effectiveness. "However, the recommended amount of dividends has yet to be approved by the general meeting of shareholders, which will be held in September," the company added. The holding found it difficult to answer where the funds received by the shareholders could be directed.

"The

holding does not have an urgent need to direct net profit to CAPEX (capital expenditures, CAPital EXpenditure), so the level of payments to shareholders has grown so much," Konstantin Belov, an analyst at Uralsib Capital Bank, told TAdviser. "Also the rise in the expected dividend may suggest that the company is not planning M&A deals in the near future

."

2011

Revenue growth by 30% to $656 million

The total revenue of IBS Group in the 2010 fiscal year (ended March 31, 2011) increased by 30%, reaching $656 million. Net profit amounted to $25.8 million, which corresponds to an increase of 86%.

IBS Group Full Audited Reporting

The margin for the EBITDA year increased from 6.9% to 7.2%, the Gross Margin decreased from 37% to 34%.

Despite the growth in sales in all areas of business, IBS did not reach the pre-crisis level in terms of total revenue. The reason for this was the integrator business, which did not reach $84 million in relation to 2008.

"The key activity of the group was the software development segment presented by Luxoft."

Sale of IBS Distribution Center LLC

In August 2011, it became known that IBS Group completed the sale of IBS Distribution Center LLC to a computer collector Depo Computers. The sold company owns premises in the Moscow microdistrict Mitino, which houses the production, warehouses and offices of Depo, explained CNews Director of IBS Investor Relations Dmitry Ivanov. The transaction amount amounted to $14.3 million.

Previously, Depo was part of the IBS Group. In 2009, the group got rid of the computer direction by selling Depo shares to its management. Having left the group, Depo continued to use the IBS premises on a rental basis. The decision to dispose of the asset in the IBS FY2010 report is explained by the fact that the activity of the real estate rental firm does not belong to the priority areas of the group.

According to the document, Depo will pay for real estate in three stages. The company has already paid $1 million in 2011. In March 2012, the company will have to pay $6 million, and in March 2013 - the remaining $7.3 million.

Depo President Sergei Eskin notes that buying real estate was a logical step. "The IBS Group does not need it and we need it, so we bought it back. If IBS sold the property to someone else who wanted to use it for their own needs rather than rent it out, we would have to look for new premises, "he says.

According to Eskin, the total area of ​ ​ the premises occupied by his company is about 10 thousand square meters, of which over 5 thousand are in production.

Softkey up for sale

The only direction that showed negative dynamics in the first 9 months of 2011 is indicated in the report as "corporate and other products." It reached $50.4 million, down 4.4%. Specifically, in the third quarter of 2011, the decline was even greater - by 6.9% to $19 million.

As TAdviser, the '"Dmitry Ivanov"' group's IR director, explained, IBS part of this line is the business, Softkey but in addition to it there are also a number of businesses and the corporate segment that are taken into account in it.

"We no longer show Softkey sales, since this business is being sold and the group's investors are not interested in its dynamics," he said.

In August 2011, it became known that IBS Group is considering the sale of part of the shares of the online store, Softkey which has been part of the group since 2006. The store has been causing losses and spoiling the group's overall profitability over the past years.

As of February 2015, the sale of Softkey did not take place. The media discussed that IBS was negotiating the sale of Softkey to a European distributor, software Arvato which is part of the German media concern Bertelsmann. IBS Group owned 70% of Softkey, the remaining 30% - from the founders Felix Muchnik and Dmitry Rumyantsev.

Growth in consulting services

As a result of its operations in 2011, revenue from consulting services increased by 32.8% to RUB 13.8 billion. At the same time, according to RA Expert, the consulting market as a whole showed an increase of 21% in 2011. The Group's outstripping growth in 2011 was driven by ongoing and new projects for major Russian and international companies and organizations such as Rosatom, Sberbank, Deutsche Bank, UBS, Boeing, Harman, ABB, EMALJANS and others, as well as active business development in foreign markets, including Western Europe, the USA and Asia.

As Dmitry Ivanov told TAdviser, international business IBS is, first of all,. Luxoft This company is active in the European market, with most of its customers from and. Great Britain Germany

"Luxoft's business, in principle, is growing faster than IBS's business, so the share of revenue from international customers will continue to increase: both European and North American," said a representative of the group of companies.

Luxoft's largest clients in Europe are Deutsche Bank, UBS, Harman, Alstom (over 100 in total).

2010

Merger of part of BFT and KC into KUB

On January 18, 2010, it became known that Budget Financial Technologies (BFT), part of the IBS group, and the coordination center (CC) Sistema merge into one company. As a result of the transaction, a new legal entity "Comprehensive Budget Management" (CUBE) appeared, which was included in the IBS Group. BFT will continue to exist, but it will remain only a software developer, and the consulting expertise of BFT, along with the resources of the Sistema CC, will go to the newly created CUBE.

"As a result of the transaction, the largest supplier of complex IT solutions for financial and economic bodies of regions and municipalities appears on the market," the BFT says.

Capitalization 239 million euros

On June 1 IBS , the Group's capitalization on the Frankfurt Stock Exchange was 239.9 million euros ($295.1 million).

Increase in the level of listing on the Frankfurt Stock Exchange

On June 1, 2010, it became known that the supervisory board of IBS Group approved the listing of its global depositary receipts (GDR) in the regulated market segment of the Frankfurt Stock Exchange, the company said.

"We hope that increasing the listing level will significantly increase the availability of our securities for market participants and allow us to attract new institutional investors," the IBS Group said in a statement the words of its founder, president and CEO Anatoly Karachinsky.

The decision was long planned, Karachinsky told Vedomosti. And investors began to advise IBS Group to change the site to a more prestigious and higher level of transparency of the issuer, he adds. In the world, interest in high-tech companies from Russia has increased - in particular, thanks to the actions of the Russian authorities, so now is a good moment to change the site, says Karachinsky. There is no talk of placing additional shares on the market, he adds. In the segment of the regulated market of the Frankfurt Exchange, more transactions are made than in the Open Market, there are more investors and stricter rules.

Loan of $20 million from the EBRD

In October 2010, IBS Group received a $20 million convertible loan from the European Bank for Reconstruction and Development (EBRD). The interest rate on the loan is six-month LIBOR (now this figure does not exceed 0.5%) plus 3%. The loan is provided by IBS for 3.5 years. At the same time, the group has the right to postpone the payment of interest on the loan on the terms of their payment at a maximum rate of 9%.

In case of deferred payment, the principal amount of the debt and the entire amount of interest on it, except for deferred payments, can also be converted into 700-900 thousand newly issued ordinary shares of the group. As Dmitry, director of investor relations at IBS Group, told CNewsIvanov, the funds raised are planned to be used to replace short-term loans from Russian creditors, which now make up the bulk of the group's loan portfolio, as well as to develop the direction of software development and expand educational programs. The latter are presented by the group in the form of the IBS Academy project - a master's degree for graduates of universities in IT specialties on the basis of MIPT and MISIS. The group plans to spend $4.7 million on this project from the amount borrowed from the bank, the EBRD said in a statement.

IBS Group expects to increase the number of places studying in its master's degree, expand cooperation with universities, and attract more teachers. As for the software direction, we are talking about the development of new individual products for customers, says Ivanov.

2009

Year 2009 revenue drop by 23%

The decrease in revenue in fiscal year 2009 (ended March 31, 2009) compared to 2008 amounted to 23% - $505.1 million. Net income under US GAAP was $13.9 million.

• Luxoft - $149 million (+ 14%)
• Softkey - $46.5 million (- 13%)
• IBS IT Services - $310.7 million (-34%)

The performance of computer assembler Depo Computers, which was sold to IBS management in September 2009, was not included in the group's performance.

The group's OIBDA expressed itself at $33.9 million, which turned out to be 29% better than last year, OIBDA margin - 6.7% versus 4%.

The company's net debt for the year decreased by 41% and now amounts to $25.6 million. The IBS Group said in a statement that this is the result of a positive cash flow from operating activities.

29% drop in revenue in the first half of the year

29% was a drop in Group revenue IBS in the first fiscal half (April 1 to September 30, 2009) compared to the same period in 2008. Revenue amounted to $225.4 million. Revenues from IT services decreased by 39%, and from development - ON increased by 13%^[7]

Capitalization as of September 3, 2009 - $128 million.

Debt $60 million

The total debt of the entire IBS Group as of March 31, 2009, analysts VTB of "capital" estimated at $68 million. In September 2009, Dmitry Ivanov, director of investor relations at IBS Group, said CNews that the group's debt burden is "approximately $60 million." At the same time, the structure of the company's obligations is mainly - at least 80% - foreign currency. Half of this debt is subject to short-term repayment (within a period of less than 1 year). Analysts "" Finam estimate IBS Group debts (excluding the last agreement with "") Unicredit Bank at $70-72 million.

Depo Computers sold to management

On September 4, 2009, the IBS Group officially announced the sale of its PC and server assembly business, DEPO Computers. 100% of Depo's shares will be bought out by its management, the transaction is expected to be completed within 45 days. Depo declined to name its new owners and the cost of the purchase.

$12.5 million loan to repay ITC Networks purchase loan

On September 10, IBS Group raised a loan from YuniKredit Bank in the amount of $12.5 million to pay off part of the old debt associated with the purchase in 2008 of the Romanian software developer ITC Networks (through Luxoft).

Diline is bought out by its managers

In 2009, Diline, together with the DEPO computer and server business, was bought from IBS Group by management.

MeshNetics sold to Atmel

MeshNetics was sold to Atmel, an American chip manufacturer. Details of the deal were not disclosed.

2008

Loss of $50 million in 2008 Fin

IBS The Group ended fiscal year 2008 with a net loss, which, although not publicly announced, but, according to analysts, put it at about $50 million^[8]

In the rating "CNews100: The largest IT companies in Russia 2008," the IBS group of companies ranks 6th with revenue of 30.672 billion rubles.

Purchase of Romanian ITC Networks for $45 million

The company announced the purchase of the Romanian company ITC Networks (which merged into the structure Luxoft). The value of the transaction was estimated by analysts at $45 million.

Purchase of the developer of distance learning systems "Lenwea"

IBS acquired 51% of Lenwea, a developer of distance learning systems provided under the HyperMethod brand. The amount of the transaction was not disclosed. According to expert estimates, it could amount to $4-5 million.

2007

GDR listing on the Frankfurt Stock Exchange

In February 2007, the IBS Group went through the procedure of listing global depositary receipts on the Frankfurt Stock Exchange.

The company enters the market of consulting and automation tools for institutions of higher education.

Completion of merger with Borlas

On October 27, IBS announced the completion of the merger process with the Borlas consulting group. The merger of IBS and Borlas became known in March. In April, the companies signed an agreement, but did not disclose the terms of the merger. Analysts estimated Borlas at $130-150 million. The merger occurred by exchanging ownership interests in assets without cash payments. 77% of the shares of the combined company are owned by IBS Group Holding, 23% by Warrant Group Ltd, which is owned by Borlas shareholders. Alexey Ananyin was appointed president of the combined company, and Sergey Matsotsky was appointed chairman of the board and general director.

Creation of Expertek IBS

Expertek IBS was created from the gas station automation team.

2006

Purchase of Softkey for $10-12 million

In 2006, IBS Group acquired 70% in Softkey, which is an online supermarket and software distributor. The amount of the transaction was estimated at $10-12 million. Softkey was intended to support the sale of Depo Computers with software sales.

Creating IBS Platformix

IBS Group has created IBS Platformix on the basis of its distribution division.

Founding of MeshNetics

IBS shareholders founded MeshNetics, which develops products and solutions based on the 802.15.4/ZigBee wireless standard (competes with Bluetooth). MeshNetics is 100% owned by the venture capital fund Oradell Capital, created in 1999 by the IBS group of companies. According to media reports, $4 million was invested in the company.

2005: Placement of GDRs on the Frankfurt Stock Exchange

In November 2005, the company placed among private investors a 33% stake in IBS Group Holding for $113 million in the form of global depositary receipts (GDR) in the regulated market segment of the Frankfurt Stock Exchange. GDRs for IBS Group shares were traded in the Open Market section of the Frankfurt Exchange. Two major shareholders Brunswick Millenium and Citibank sold their holdings to funds and institutional investors for $109 million. The company was valued at $343 million.

2004: Creation of computer manufacturer DEPO Computers

DEPO Computers has been created on the basis of the Diline distributor, which is introducing a new line of DEPO Ego home computers to the Russian market.

2003

• IBS has created a press monitoring system by order of Medialogia, which allows you to track publications, divide them into negative and positive and draw conclusions about the general background of the media attitude towards the company has created a press monitoring system. Medialogia is a portfolio company of the Oradell Capital fund.

• IBS enters the insurance company automation market with the IBS Insurance solution.

2002

• IBS enters the information security market by receiving the appropriate FSB certificates and concluding partnership agreements with suppliers of information security solutions - Rainbow Technologies, InfoTeCS.

• IBS received funding in the amount of $12 million from IFC, organized by the World Bank for investment in the private sector.

• InfoTeCS and IBS have enter into a cooperation agreement in the field of information security technologies. The companies have joined forces to take joint actions to create comprehensive solutions to protect information and jointly promote these solutions on the market.

• IBS and Intel announced the opening of the IBS Competence Center to promote enterprise solutions on the Intel platform (including ERP systems, CRM systems, information security systems, Internet technology solutions, etc.).

• IBS and Robertson & Blums Corporation became partners. The partnership involves cooperation of companies in the field of creating financial and economic planning and budgeting systems for Russian enterprises of large and medium-sized businesses using the Adaytum e system. Planning.

2001

• IBS announced the entry into the management consulting market, the practice of management consulting was created.

• IBS has entered the Asian market. An agreement was concluded with the Ministry of Justice and Internal Affairs of the Republic of Mongolia for the development of software for creating a system of state registration of real estate.

• IBS and Navision, a provider of integrated mid-market business solutions, have entered into a partnership agreement. Under the agreement, IBS was granted Navision's Navision Solution Center status and announced plans to operate in the mid-sized business ERP systems market.

• IBS has entered into a cooperation agreement with ProInvest in order to carry out an agreed policy in the field of consulting services.

• IBS announced the official opening in Ukraine.

• IBS and Expand Networks, a provider of enterprise traffic caching and bandwidth optimization solutions, have announced the signing of a partnership agreement that enables the proprietary Enterprise Caching technology implemented in Expand Networks ACCELERATOR devices to be used in integrated IBS integration projects.

• IBS has partnered with Intersertifica, a quality management training and development centre. The companies intend to cooperate in the creation of quality management systems at the enterprises of Russia and the CIS, the development of these systems and their preparation for certification by TUV CERT (Germany) for compliance with international standards ISO 9000:2000 series.

• Creation of IBS DataFort - a structural unit of IBS Group. The company specialized in providing IT outsourcing services and managing data centers. The key business of IBS DataFort is to provide a private cloud as a service, not a project.

1992-2000

1992 - the founding of the company by Anatoly Karachinsky. This happened after he left Intermicro, where he worked as a technical director. It is believed that he was inspired to start his own business by communication with Esther Dyson - an American investor, entrepreneur and public figure.

In 1995, IBS announced the start of the Diline distribution center.

In 1996, IBS signed an agreement with the Canadian company Newbridge, a manufacturer of hardware and software products for organizing integrated digital communication networks. In the same year, IBS, the American Dell Computer and Citicorp announced the joint creation of a new computer company Dell Systems Limited, which receives the status of an exclusive supplier of Dell products in Russia.

In 1996, Citibank became the first international investor to gain a stake in the IBS Group.

In 1998, BFT was founded - a developer of design solutions based on its own methodological and software products for the public sector and business. In the same year, the AIG-Brunswick Millenium Fund, created in 1996 by the American insurance company AIG, invested in IBS. The amount of the transaction was not disclosed. The share of the fund in the company, according to media reports, amounted to 22%.

In 1999, the Oradell Capital venture fund was founded. Later, it began to work autonomously. The idea of ​ ​ creating the fund belongs to one of the founders of IBS - Anatoly Karachinsky. The fund has invested in the following projects:

• NewsPaperDirect,
• MeshNetics,
• "Medialogy,"
• Yandex,
• VR Ocean,
• RStory.

The head of the fund is Mikhail Lukyanchuk. As of February 2015, IBS owns a minority stake in the fund (according to media reports, 15%).

Director of Public Relations of the IBS Group of Companies Yevgeny Kutilov commented on the fund's transactions as follows:

"Oradell is not part of the group and is only associated with us by common shareholders (as well as some projects we do for the fund's companies on a commercial basis). A minority stake in the fund does not give us control over its operations, so we do not consider everything the fund does as part of our business. It's not part of the holding. "

In 2000, IBS created Luxoft, which develops custom software, product solutions and IT consulting.

Notes