Siili Solutions Oyj (SIILI) Earnings Call Transcript & Summary

Good afternoon. My name is Antti Kiukas, and I am the Chief Marketing Officer here at Siili. We want to warmly welcome you to this Siili Solutions Capital Markets Day live broadcast of 2020. Unfortunately, we cannot be together live this year because of the global conditions. But at least here, we have a short pictorial greeting from both our executive team and also our Board of Directors. With the subjects we are going to demonstrate today, we've been working in cooperation really hard with these people. But at the same time, I must say that the people making this possible are naturally the Siili is working with the customers day-to-day both domestic and also internationally. Year 2020 has been a year of change and development for us here at Siili. We knew already at the beginning of the year that we would be working simultaneously revising our strategy and also renewing our brand. This is mainly because we believe that brand is merely an external manifestation of the strategy, so they need to be done side by side. But little did we know that we would be doing this simultaneously, while adapting to the conditions of a global pandemic. So it's been quite a year. But I'd say that it's safe to say at this point that we were -- we managed to do the both. And this broadcast is a venue for us to demonstrate you the end results. So without further ado, let's take a look to the today's talks. I will start the presentations on sharing some topics on our new brand. And after me, our CEO, Marko Somerma, will tell you more about Siili and also on our revised strategy. After that, we give the stage to our Vice President of Digital Experience, Andreas Strandman. He will shed more light on the term, and he will also showcase some customer work that we've done on that area. After Andreas, it's time for Kristian Valkama to introduce our intelligent automation unit called, Skaler. Skaler is a relatively new brand identity, and it's born global, both in terms of capabilities and, of course, market demand. After that, we transform the broadcast to Poland, where Wojciech Kurek will give us a small tour around Siili Auto and its latest success stories, and we end the presentations with Aleksi Kankainen, our Chief Financial Officer, who is going to give us our latest key financials, a drill down on those and also a bit of a financial outlook. And now something important. Throughout the presentations, you have an opportunity to send us questions. Below the screen, there is this text where you can press and type in your name and your question, and we will reply to those at the end of the presentation after all the presentations are done. So keep the questions coming throughout the presentations. But without further ado, once again, welcome, and now let's dive into the Siili brand. So it's more than 8 months of really hard work coming up with the new brand, the new brand identity and so forth. And I would say that in this case, one video tells more than thousand words. This video will introduce the overall picture of the brand, and all the presentations after me are going to give you more detailed information on why we selected the visuals and the words we selected. But here, we have it, new Siili. [Presentation]

There, it was. We help you find what's essential, then we build it, make it real. That's my favorite part of the video because it really tells authentically what we are. Based on this, we decided to say that we deliver digital experiences through creative technology. And throughout the rest of the presentations, you understand why did we choose these exact words. Now let me give the stage to our CEO, Marko Somerma. Your turn. Thank you so much.

Thank you, Antti. Very nice to be here. My second Capital Markets Day. And so it means that I have been 1 year in this job. So as Antti already said, my name is Marko Somerma. When I started in this role, I had quite a traditional 100 days agenda to focus on. First of all, to make sure that business continues well, and we are able to continue growth. Of course, all of us, when CEO is changing, there is a risk that people are losing the focus on the ball. Secondly, we start working very systematically on improving commercial excellence and operational excellence, and especially working on commercial topics to make sure that we are able to grow. Then we have put it in the springtime quite a lot of effort on offerings. And via the offerings and actual testing them in the market. We have been starting working on strategy, thinking about future operating model. And at the same time, we have been working with the brand. And the COVID came there. So that was not planned in the 100 days. It came, but timing was pretty good. We were -- when the things went bad in the spring, we are actually pretty ready to just focus on the business, also the change to the remote working, it went very well. All in all, after, in this autumn, I'm very glad to see that we were able to continue our growth path. We have been able to have a good trend in the profitability. And now in autumn, we are launching brand strategy, and we are also changing the operating model to support the growth. In my presentation, I'm going to speak about strategy. And secondly, I will move to a topic of that how Siili is building a growth platform. First of all, before going to our strategy, I'm going to speak a little bit about our market. The market is definitely not limiting our growth. If you look at this picture on the top, in Finland alone, the target market for us is over EUR 2 billion. And we are also targeting market that is outside Finland. Only in Europe, it's EUR 80 billion to EUR 100 billion. Huge market. Also inside that market, the structure is changing to the -- let's say, favoring our business. So we are focusing on digital experience, platforms, emerging technologies, hyperautomation, intelligent solutions. All these parts, you see in the picture are taking share here. So traditional IT, that is more like based on standard solutions, that share is getting smaller. Going forward, just taking the Forrester's predictions, everybody is saying the same, it's quite likely. I really believe that COVID is going to accelerate digitalization. The simple reason is that companies have realized that now we are actually very, very quickly changing from the physical world, more and more to the digital world. Whatever new you are launching, you have been pretty sure that you need to start thinking about digital, digital experiences and overall, how do we build up the future companies in such way that human and machines are able to operate in a better way, together in the corporations. And the Forrester is predicting that, that acceleration is going to happen already next year. So the market is very good. So let's talk about our Siili strategy. We have 3 pillars in our strategy. First of all, we have our Finnish core business. And in the Finnish core business, we have selected strategic main theme, digital experience. So it means that it is our main focus and growth focus. And it will, in the future, mean that when we are hiring new people, when we are designing on priorities, on the technologies, our partners, how do we train our people; also, how do we select what kind of [ imitates are interested ]. Then it means that digital experience is -- has the highest priority. We are -- we don't change our customer focus. So we are still focusing on large and medium-sized corporations that have a head office in Finland, both private and public sector. We see there's plenty of opportunities to grow. Of course, there is a -- crucial that, especially in the core business, we are continuously developing our commercial and operational excellence. And that's something that is going on pretty well, but we have still a lot to be gained there. Secondly, we are continuing our portfolio strategy. In the portfolio strategy, we are incubating or acquiring service businesses that have a very specific and quite narrowly defined focus on productized services that have international growth opportunities. Today, we have 2 examples, Siili Auto. Wojciech is going to discuss and describe it today. Siili Auto is incubated from inside Siili. And then we have VALA. VALA is our quality assurance arm and focused on the manual testing, automated testing and overall DevOps methodologies. Third point is that we are now accelerating our internationalization. So in practice, it means that we are going to establish organically or by acquiring dynamic well-managed digital service companies that are -- that have a similar strategy and operating model like we have in Finland. They have a different geographic focus, and they will bring new customers to us. So these are the 3 pillars for our strategy. In this strategy, this is only possible with people. So let's look a little bit about our team. We have a fantastic team. We are not starting this strategy from the scratch. We are a combination of digital agency and technology powerhouse. This is not our organization, but on a high level, it's so new that in digital experience, where we have the designers, we have the technology experts that are working on the kind of front-end technologies. Andreas is going to describe this in more detail. Then we have Siili Auto that is doing exactly the same kind of work but inside the car. We have a big team of professionals there. Then we have a creative technology team. There, we have a really hardcore professions that are able to solve really complex problems. Siilis very often working with really critical processes, working on the integrations of the data and also creating software from scratch. Very often in digital experience, the true competitive advantage and differentiation, it is not coming actually from the frontline technologies, it's coming from this creative technology capabilities and skills. Then last but not least is what we call cloud and DevOps. This is a team of professionals that are making sure that whatever is developed, we are able to put that into production without risking the current operations, and we are also able to renew digital services faster and faster. There, we have a team in -- people in the inside team is at Siili but also in the VALA. Great team. So let's move a little bit further about how -- what is our approach. If you look at this picture on the right-hand side, and you -- hopefully, you still remember what was said in the brand video. This is actually describing exactly what we are doing and what we described in the brand video. So the idea is that we always start from customers' strategy, and we start working with the customer to create a continuous improvement cycle. Then we move on to digital strategy, experience design, software development and data engineering. And then, of course, we continue to continue services, and we have fantastic measures covering and helping fast and secure way of implementing new things. And in the end, our promise is that Siili is able to make it real. We make digital experience real. So this is our way of working always starting from the customers, always starting from the human centric design. We believe that is a good way of looking at customers' strategy, asking that where are the stakeholders, what are the users' needs, how do we help the human-machine interface. Going forward, what does it mean in the strategy? It means that we are relatively increasing our investments on experience design and overall in consulting. So it means that we are able to it basically uplift our value chain position from the -- even from the current situation, being a much more valuable partner for our customers, helping customers to accelerate the strategy, which means that overall, we are able to get into more interesting, more demanding assignments, more longer-term partnerships. Okay. This was a high level about strategy. Then I will move on to describe our -- how do we actually build a growth platform. So to start with that, we could start from the -- our overall corporate model. So we are working on to build up a growth platform. So we are incubating new businesses very actively. We are seeking for new companies to acquire either in the portfolio companies as a specialized portfolio companies like described, VALA was a good example. And then we are also looking at new interesting companies that could actually accelerate our internationalization. About ownership, we have our own very flexible strategy there. We look at the business situation, what is best for the company. If we are acquiring a company, we like to have a majority, but we are valuing also entrepreneurship. We see that it's good for the business and also for the people and for the energy that the management has ownership in the companies. We have an Evergreen approach, meaning that we don't have any forced deadline for ownership. So we can even have, let's say, long-term minorities in these companies. This gives us lots of flexibility on -- from the corporate perspective, how to attract and integrate new businesses in the Siili's platform. We also have a flexibility regarding capital. In this case, meaning that if we, as an example, have an interesting opportunity somewhere, which we believe that it's too risky for Siili to take the financing alone. So we can invite growth capital or private equity to work with us in accelerating the growth. Okay. Then I will move to how -- if there is a new business, so how can we actually help the new business to grow? We are not only financing to new companies. We have many other ways to help concretely the business growth. First of all, we have designers, we have a technology experts that are able to help in many ways to new companies and also broadened capabilities. As an example, with portfolio companies, they need to have a very strict focus when they are going forward. But time to time, they also need broader skills. Kristian is going to describe that in when we are talking about Skaler. Then the second point is that we are working very actively on growth acceleration. Antti just presented -- who was just presenting. Antti is heading our rainmaking machine. Some other companies are calling marketing. We don't call it marketing. The reason is that the sole purpose of marketing is actually create leads. So we are working very actively on strategic themes and targeting certain segments and generating leads for the sales. Then we have a natural distribution channel and the growth channel for new companies as our core business have a new existing customers. So as an example, VALA -- so in Siili, we were able to right away, accelerate sales growth of VALA, just by offering VALA's services through Siili's core business. And last but not least is, of course, professional support. These new companies don't have experience of the support. We can help that -- in that. But we are also building up supporting processes and technologies that are able to, let's say, speed up the growth office staffing, growth business staffing so that we can find, let's the best possible team for international projects. To move on and give an example. VALA is a great example. Sami is heading this business. And as you can see, he's smiling. He's always smiling, but he has a good reason to smile. Our cooperation has went really well, both for the VALA's team but also for the Siili. So our integration focus has been on commercial topics, and that really has paid off. Also, our counterfeit has been excellent. And now almost after 3 years, I can see in practice that this cooperation is going ahead in a very good way. Moving from VALA to Poland. We established a new core business in Poland. So we are utilizing the fact that in Poland, we already have a good platform. We have a Siili Auto, and Wojciech that's going to -- he's going the present Siili Auto. Inside of Siili Auto, we have a team that we are now going to grow and accelerate. And we are calling it from now as Siili Poland core. And that team is going to have exactly the same strategy and operating model like we have in Finland. The team is there, as you can see. They are really great professionals. They are working with our -- with the Helsinki team very often and actually not only doing the standard stuff. Very often, they are doing really difficult parts of the assignments and offering this very similar to what we are offering here overall. Digital experience, data platforms, sensor fusion there. Today, we have 14 people there. Team is based in [indiscernible]. They have already now a few international customers. They are serving directly. We are going to speed up growth, finding new customers. And then, of course, we are supporting Finland going forward when we are having our possibilities to utilize international teams. So to sum up, what we're actually doing is that we are building up a digital forest. So if I start from the right-hand side from the picture. We are building the platform there. A platform that is a good base for growing new businesses, other core businesses or other portfolio businesses. Also, the platform in practice, it is a base for people to grow and learn. And then we are also doing everything to make sure that business cooperation between these companies and units goes as smoothly as possible. This doesn't happen overnight. And this is, of course, continuous process, but this development is going pretty well. So we started with making sure that we have a strong core. We have been investing on our capabilities. We have been now -- let's say, started also more active M&A work, starting in the quarter 2 this year. And hopefully, we will find some new companies to join this Siili's community. Then, of course, we need to work pretty systematically also for the processes that are going across these portfolio companies and core businesses. And those processes are really focused on commercial cooperation. From the support, we give the support, but that is not the focus in this business. We are in a growth business, and we -- our focus is in accelerating the growth. To sum up and to change to the sustainability. We are building -- this is our forest, but we are actually also planting a real forest. So we are planting 43 samplings for each Siili every year. This is actually compensating CO2 emissions, both from the working time and free time. This is a great example of our values and our way of working. We want to make it real. We want to make sustainability also real. This is a people's business. So for us, it's extremely important that our people are feeling good. This is a good place to work. And we have a continuous training programs, and we have equal opportunities for all Siili. For that, we have a training programs for new starters or people who change career to digital, where we have a masters and apprentice, program like that. Then we have a Siili academy. We have a different kind of webinars. We have a coach in different ways of supporting people in the growth in the daily working life. Then, of course, in this business, we can't take any risk regarding the privacy or data security. And then in that is, of course, regulations and trainings are key, but it is not enough. Here, our cultural values are, of course, the thing that is finally giving the real quality for privacy and security topics. So I'm now ending this story and just to these centers, digital experiences through creative tech. And Andreas is going to take a little bit deeper this topic. Thank you.

Thank you, Marko. And while we wait for the slides to really come on, let me remind you to keep your questions coming in the chat. So we can have a good dialogue at the end of this session. But now to the second presentation today. My name is Andreas Strandman. And today, I will tell you why digital experience is our spearhead for growth. And how it can boost our profitability going forward. Today, you will hear what we mean by digital experience, why we have selected it as our spearhead and what kind of growth opportunities we see going forward. Before jumping into that, let me just briefly introduce myself. I've been with Siili for 6 years now. And through various roles, I've seen from quite a few angles how our company works and what our customers need. And before that, I worked in a couple of smaller growth companies in an international setting and also very close to the digital and experience context. But now let's move to a question that probably many of you are asking yourself right now, what is really this digital experience. When you think about the words, you probably first start to visualize a user interface. For example, a laptop showing someone's website, maybe an online store on your mobile phone or perhaps a dashboard in your brand-new car. And of course, all of these are really what makes the digital experience come real where you experienced it. But a lot of different activities take place before this can actually happen. For us, to be able to craft world-class digital experiences for our customers, we first need to really understand what is their strategy, how does their business work, how -- does their processes work and how do all their different stakeholders tie into this and how does digitalization impact all of this? After that, we can really start to design various services. Of course, starting first with the user, the stakeholder at the center and figuring out what they need to achieve across all the different touch points on their journey. After this, we are able to start actually developing these services, perhaps through software development, developing custom code, user interfaces, back-end systems, integrations or utilizing some pre-existing digital platforms as part of that work. Now all of this is still quite invaluable, unless you really have data both flowing in and out of the systems and data that is reliable, meaningful and really connected into the business of our customers. Now finally, of course, all of this has to operate also very reliably despite time and place and throughout the entire life cycle of these services. And automation, of course, plays a really important part as well in both making the development work and the operations more efficient. Now if you look at this picture, you can see that it's quite a complex web of activities that need to play in sync and very seamlessly work together for a good digital experience to be formed. And there is really only a very few companies that can handle this complexity in an agile manner. Siili is one of these companies. Now you might also ask, well, why digital experience, there's a lot of things happening in this bigger picture of digital service creation. Why did we choose digital experience as our spearhead. Let me elaborate that with the next slide. Well, simplistically said, it really makes financial sense for our customers to invest in good digital experience. First of all, bad digital experience can quickly lead to losing customers, suppliers, employees. And we all know how expensive it is, how much investment goes into getting one customer or one new supplier. So it's really financially a very, very poor decision not to invest in DX, and this way, lose some of these good investments. On the other hand, user-centric design, which is at the core of finding out what is meaningful from a digital experience point of view. It is probably the best way of uncovering where you should put your investments going forward. And thirdly, once you do the right things and actually achieve good experience for your stakeholders, then you can achieve a self-fulfilling positive cycle that really makes you get free advocacy, free publicity for your services, for your company. And all of this is something we have experienced firsthand, but don't take our word for it. It's also visible in research by, for example, Forrester, McKinsey and many others. Finally, you could also maybe state that there is a certain sort of paradigm shift underway in the market right now. Most companies already have their first encounter with their stakeholders through many kind of digital channel. And there's already a lot of companies in the market that have only digital touch points towards their various stakeholders. So looking from this perspective, it really makes sense to invest in digital experience. And for us, that is the vehicle towards the bigger picture of digital service development. Now digital experiences really can take place anywhere. It can be a customer experience, supplier experience, consumer experience. So let's look at one, a little, maybe less obvious example that we have encountered with our customers. This is the case that we work together with some 50 different stakeholders, government agencies, banks, insurance companies. And the context is the very sad happening when your relative dies and everything that follows after death, all the paperwork, all the activities that has to be taken care of during a very difficult time in your life. Together with our customers, we have tangled this very complex web of stakeholders, processes, tasks, various different information and data flows. And we have created a concept that really put the user at the center, looking at how their lives can be made much more easier in this difficult time. And in addition to allowing these services now to be developed in a meaningful way, of course, this also will end up saving a lot of money for taxpayers and also the companies involved. Well, if this was an example of how we help our customers find what is essential, then next, a few examples of what we actually end up building in the process. Very often, our work centers around our customers' online presence building sites that really acts as lead generation engines, helping convert their prospects to customers at a better rate. We also work a lot with portals designed for our customers' customers, suppliers and the likes, helping them maximize the lifetime value of their stakeholders. And of course, mobile applications, eGovernment services are also part of the mix. Again, helping to retouch various activities from time and place, making processes more efficient and this way, saving a lot of money. So you could really say that everything we do from a DX perspective then both bows out to these bigger projects that lead to tangible benefits for our customers, either be it growth, efficiency or competitive advantage. Well, now you've seen roughly what digital experience means to us and why our customers need to invest in it. So why have we chosen it as a spearhead? How do we expect to win in this market? Well, you already saw in Marko's presentation that the market is substantial. The digital service market in Finland alone is more than EUR 2 billion and in Europe, close to EUR 100 billion. So there really is market for us to capture. And like you hopefully understood from the previous section, digital experience is a vehicle to capture most parts of this market. For us, this is a natural choice since we are already quite strong in digital experience. First of all, we have a substantial amount of ongoing business in the public sector with financial services companies in the service and industrial sectors. And many of our assignments are already multiyear with commitments towards many years in the future. Secondly, we have the right expertise. Again, like Marko presented, there's already more than 200 amazing people working in the digital experience context. And these people have now gotten a platform that can further elevate them. On the other hand, we can also leverage our partner and take partner networks to further expand our reach into this market. Thirdly, we have proven results that were strong in this space. We have many long-term customer relationships with leading companies in their business. The longest relationships in DX already 10 years long. And through these relationships, of course, we have built various services that we can use as references with really proven results on how we have created value. So there's why we are strong in DX already. And let's now look at a few concrete examples, so you can see for yourself what it is we work on. This first case is from a global process industry company. With them, we're working on the digital supplier experience. They are in a business that is very much the future for most of the planet. And the demand is substantial. What they compete in is on the supply side, making sure that they get enough raw material to be able to meet the demand. And what we built together is a platform for their suppliers to handle all of the activities that they need to handle together with our customer. In addition to the normal customer supplier relationship, there's also a lot of mandatory legal paperwork because this is a highly regulated market. So naturally, if you want a supplier that can sell their supply anywhere to work with you, you have to provide the best possible digital experience and really easy to use seamless experience. And this is what we've built together with them. And this way, we're making sure that they get an undisrupted flow of very crucial raw material to be able to deliver on their strategy. Now the second example is from a Finnish organization called Teosto. They handle music rights for most of Finland's artists. And earlier, they sort of had a monopoly in the market. Well, these days, that is no longer the case. Anyone can take ownership or management rights to their own music rights and this way, Teosto needs to compete for their business going forward. Again, something that requires them to provide an impeccable digital experience for their customers. Together, we have built their online services or rebuilt them on a new platform, focusing on the customer experience. And already after the first release, the user feedback went from 4 to 6 on a scale to 7. So clearly, another example of how we have helped them to build better customer experience and this way, competitive advantage. A further note to both of these case examples is the fact that this year has, of course, been difficult for many, very much so for both of these companies. You can imagine with all the events being shut down, what that means for the music industry. Still, our relationship with these companies has continued as before because we really are in a strategic partnership with them, working on areas where they have to invest in to be able to compete in the future. And this is the type of work we are looking to go after also in the future. Now you've seen that DX is really something companies invest in, something that we also are strong in already. Let's finally look at a few growth opportunities and how we see the market going forward for us. As mentioned, digital experience is this spearhead that allows us to capture more of the digital service creation market. And first of all, we're going after a more strategic position in this value chain. By focusing on DX, we're moving to an earlier phase of digital service creation, closer to our company -- customer company strategies and also closer to their C level. And this usually translates into higher prices. On the other hand, we're also looking at adjacent markets, areas where we can work in a similar strategic position, but where we aren't yet. And this way, we're able to expand our reference group of companies. And of course, by going into this kind of position, we're able to funnel more work towards entire Siili as an organization. Secondly, we are accelerating growth in new markets. Marko already mentioned our investment in core Poland. In addition to that, we have a lot of technology partnerships that we aren't utilizing yet as channels for our own services. And this is something we're going to put the emphasis in. Secondly, we also have a lot of demand already from new markets where we're not operating at the moment. This is something we're also going after more opportunistically now. And then the third really point how we see this developing positively in the future is on the margin side. Going into this earlier phase, higher up the value chain means that there is an opportunity for higher price points. On the other hand, when we're focusing on the areas where we are strongest and in areas where we can do more repetitive work, utilize more reusable assets. We gain efficiencies, which again translates to higher-margin potential. And finally, we are also able to more efficiently staff our teams using either seniority or geographic location as the dimension in the matrix. And this is, of course, possible now more than ever due to remote working becoming the norm. So to summarize, I hope you've gotten a better picture of what DX really means to us, why our customers need to invest in it, why we are really strong already in this area and what kind of growth opportunities we see going forward. Thank you. And now I give the floor to Kristian and Skaler.

All right. Thank you, Andy. I'm Kristian. And today, I will be introducing Siili Skaler, our new automation powerhouse. Skaler delivers digital workers that cut costs and help our clients scale up their business opportunities. And we do this in a model that helps us scale up our own business opportunities. But first, let's start with the market that we're in. Gartner lists hyperautomation as one of the top technology trends for 2020. Hyperautomation is about organizations, identifying their processes, mapping them and automating them to the greatest extent possible. When we look at the markets from a domestic perspective, we are in the range of USD 50 million to USD 100 million with regards to annual revenue. So a modest market, which is growing fast. On a global scale, the spend on this type of automation is currently estimated somewhere between USD 2 billion to USD 3 billion, growing at a rapid pace, predicted to reach over USD 10 billion within the next 4 to 5 years. So we definitely see that we're in a global growth market where there is room for us to grow our business and increase our market share. When we look at adoption across segments and industries, the banking, financial services and insurance industries, the BFSI sector have been the early adopters. Today, they have hundreds of automated processes and moving rapidly towards hyperautomation, where automation is a driver for business transformation. Soon thereafter, the telecom and health care industries are following with full-scale process automation. We see an increasing demand in the public sector, which is reflected in the number of tenders and RFPs that are out there and a lot of untapped potential in the manufacturing, supply chain and services segments, which is where our current growth focus is. Even though we're a relatively newly established business unit within Siili, this isn't a new domain to us. We've been in the automation game for quite some time now. Back halfway through the last decade, we started helping our clients automate their business processes with technology called robotic process automation, RPA. And that's basically about building software robots that are used to automate recurring rule-based tasks and that way, automate business processes. We started by first mastering the leading commercial RPA technologies. And from there on, building on Siili's strength as a comprehensive IT service provider. So adding in the data science, artificial intelligence and machine learning capabilities. And this enables us to automate more complex end-to-end business processes. Along the way, we acquired a company called Omenia, which brought in some significant test automation know-how and open source know-how. And this track led to us becoming one of the key drivers moving forward and developing an open approach, an open source approach to robotic process automation. One outcome of this track has been the inception of a company called Robocorp. Today, Robocorp is building a platform for open-source software robots, their orchestration and operation. We were involved as a seed phase investor, but have since exited that and today can continue to collaborate with them actively. All this great know-how that we have around the domain of automation is now being assembled into the Skaler business unit and under the Skaler brand, which I was brought in as a business developer with a growth entrepreneur background from an international setting to drive forwards on our mission. But what is that mission really about? What are we trying to achieve? What are we driving forward. Our mission is to take automation in the office to the next level, to bring the same kind of sophisticated automation that we have in the factory, in production, into knowledge work and into the office. And we do this by building a virtual workforce of software robots that can work relentlessly around the clock providing 24/7 operational capabilities and the potential to scale our business operations. And when we fuse that workforce with artificial intelligence and machine learning, it really has the capability to automate complex end-to-end processes that drive business benefits and a real impact. So essentially, we are providing the capabilities to deploy automation at any scale across any IT systems. But why? What's the real motivation behind us? At the end of the day, it really comes down to people. In today's occupations, the amount of information systems we have to use is constantly increasing. The amount of data we have to process in these systems is increasing. And as a result, the number of mundane recurring tasks we have to perform in our day-to-day occupations is constantly on the increase. We all have it when we pause to think about it in our own jobs. And a lot of this work is stuff that people weren't meant to do in the first place. So let's [ robot source ] that. We believe that people should be able to focus on more meaningful work, the stuff that adds value that really drives the business forward, the creativity, the problem-solving and the interaction between humans. In today's occupations, in 60% of the job descriptions that are out there today, over 1/3 of all tasks could be automated. Imagine that. That is a significant transition in knowledge work in the near future, and we are part of that transition driving it forward as a technology and service enabler. There are undisputed numerous benefits to automating business processes. But often, the focus is on direct cost savings. How can we generate the FTE savings? But it goes far beyond that. If we look at the qualitivity (sic) [ quality ] and productivity dimensions. For example, a law firm used an AI-based automation to automate the handling of their NDAs, nondisclosure agreements. And in doing this, they managed to cut down the processing time from 90 minutes to 30 seconds for one document. And in doing that, also increase the accuracy of finding errors from 85% to 95% compared to their top 20 lawyers, so a significant productivity leap. We recently helped redefine the employee experience of coming to work for an accountant firm. Previously, the accountant started every single workday by coming into the office, going into these outdated legacy systems, manually downloading bank accounts and tax statement information and then processing that, uploading it into other systems. That was the start of every single workday for them. We built a virtual workforce that handle that before they came into the office, so that they could start their day with a cup of coffee and a bit of interaction before diving down into the billable work. When it comes to difficult times like the global situation that we're currently facing, automation can be used as a significant contributor towards business continuity and security. So for example, help address and react to significant market change. But how then do we deliver on these benefits that automation can provide? Our service offering is packaged into what we call robotics as a service that enables us to help our clients on every phase of their automation journey. No matter the automation maturity. So in the first phase, we help them build an automation program, which we tie to organizational goals and the overall strategy. We provide consultation services to discover and evaluate new automation potential. In the second phase, which is really our core, we make it real. So we build and develop the automation solutions. And we do this by harnessing both the market-leading commercial RPA technologies and open source RPA, which, in many ways, we see as a game changer, cutting the license costs and enabling a new and efficient approach to building intelligent automation solutions. In the third phase, we provide the infrastructure to operate the automations in the cloud and scale up operations. And in the fourth phase, we provide full life cycle management, a service level for each automated process. When we look at our business model, the first 2 phases are primarily based on time and material-based service provision, but the latter two, the operation of the infrastructure of robot-based fees and recurring revenue-related components to them. But what's more important is that this model really helps us deliver an impact. On impactful automation, a lot of organizations start their automation journey by picking the low-hanging fruit, working within organizational silos, usually automating the simple rule-based tasks in back-office functions like finance and HR. And in doing this, the benefits that can be gained often on an individual or team-based level. Our objective is to drive impact for automation. So wider scale end-to-end processes that really have business benefits. For example, speeding up order to cash or improving cash flow by providing a fully automated invoicing process or reducing tied capital to stock and inventory by automating transactions across the supply chain. And we do this in a model where we want to shift focus from automation reporting that is focused on robot monitoring, so the transactions that robots are doing to a model where we can really monitor and visualize the business benefits, make them evident throughout the organization to serve as a point for decision making. So how then do we deliver this kind of impact? We see automation as a way to solve business challenges and have a holistic approach to building automation. This is what sets us apart from the competition and the providers that approach automation primarily from an RPA perspective. So if we look at a customer journey across the IT landscape, and we map this process. After leaning that, we can identify still certain pain points and use automation as a tool to solve these pain points. In the conventional approach, we take a visual tool and then we use this visual tool to build automation in the user interface layer, so kind of a glue on top of systems, keeping them together. In our approach, we harness a more comprehensive toolkit, which really builds on Siili's strength as a holistic IT service provider. So of course, we harness the basic RPA. Then we take it a step further than that. When we have situations where it makes more sense to actually modify the target systems that we're automating, we do that. We efficiently harness the interfaces between systems and develop them further. We have the data science capabilities to explore the data, find new ways of harnessing this as a part of the process and building data architectures that supports more advanced process automation. When we look at artificial intelligence and machine learning in this context, it is often about computer vision, the ability to interpret or analyze documents, the ability for robots to produce texts, to understand texts or understand audio and interpret that to text, which we can use as a part of the process. And taking it even a step further from that, building recommendation engines and decision engines that really build on the AI and ML capabilities we have. Last but not least, it's about how we tie this type of automation into organizational workflows. For example, finding new ways to trigger virtual workforce in the cloud from within mobile applications or existing solutions used within organizations. Or, for example, in a customer service process at the front end, having chatbots, who are addressing the customer and who are then triggering software robots, implementing and carrying out back-office operations. So finding new ways to optimize existing workflows and building entirely new types of workflows for our clients. We work with a range of interesting clients across industry segments and sizes. Each of them are at a unique pace on their automation journey. And we are helping them take the next step forward towards hyperautomation. Recently, we've helped quite a few of our clients shift from a situation where they have automated processes running on dusty laptops in the basement, and you'll be surprised what kind of automations have been run like this, to a situation where they have a virtual scalable workforce in the cloud. And on the topic of scaling into the cloud, I'd like to leave you with an excellent example of scaling customer service capabilities. We had a client who faced a situation where regulation changed, and it required them to update know your customer data for hundreds and thousands of their clients. The schedule and time frame in which to do this was tight. There was a significant volume of transactions that had to be handled due to the very large number of clients that the update was about. There was no feasible business case for handling this with the existing tool set that they were using. And the technology didn't provide the means to scale up in a way that was required to solve the challenge that the customer was facing. So we helped them build up a virtual workforce that was operated from the cloud a virtual customer service team, if you will, that at best had over 30 software robots working on this one and only process. And in a model like this, we have full visibility and transparency into the nature of the process. So here in the bottom left corner, we see demand on a weekday and hourly basis, and we can match and scale the virtual workers that we have working on the process behind the scenes. This enables us to really cut down customer wait times and improve the customer experience. In a case like this, we were able to save over EUR 300,000 in direct license cost savings, a significant amount of customer wait time, years and years of phone wait time and also significantly reduce the strain on the customer service organization that handling a situation like this would have meant without the automation solution. And that's what Skaler is really all about, helping our clients scale up their business opportunities, doing it in a way that helps us scale up our business opportunities. So focusing on the human, focusing on the core and automating everything else around that. Thank you very much. And next, we will shift the broadcast over to Poland and Wojciech from Siili Auto.

Thank you, Kristian. A warm welcome and regards from Poland. My name is Wojciech Kurek, and today, I would like to introduce how Siili Auto is navigating COVID-19 and emerging stronger. During the next 15 minutes, I'd like to introduce Siili Auto, give an overview of the market situation and with the short and long-term outlook and explain how we are strengthening our position in the market. Let's start with the few key parts about the company. Siili Auto is one of the portfolio companies with its headquarter in Helsinki, Finland. We have 3 main competence centers in Oulu, Finland, Szczecin, Poland and Wroclaw, Poland. This is where I am based. Additionally, we have 3 sales offices in Detroit, U.S.A., Stuttgart and Berlin, Germany. Both Stuttgart and Berlin also serve as the allocations of small customer-facing engineering teams. At Siili Auto, we understand that car manufacturers need completely new products and the user experiences, but innovation and development costs are prohibiting. We have a relatively short history in automotive industry. Therefore, unlike our competition, which reduced to water for life processes and longer development cycles, we bring nimbleness and agile teams there. Also, unlike our competition, which is coming from low-level C, C++ calling really deep down to the silicon, we bring top talent with the background in gaming and digital services development. As a result, in relatively short time and despite out of industry, being rather hermitic, we've been able to achieve a lot. There are more than 3 million cars on the road running software from us. We have 5 OEMs as our customers, 9 Tier 1 as our customers and 6 partners, we do provide our services, too, all through them. I will come back to the partnership a bit later on as well. Let's take look at our offering. We divide our offering into 2 segments: human machine interface development, which, in our case, covers developing software for production costs, telematic and data platforms, cloud-connected human machine interfaces and building demonstrators. Good example here is a telematic platform, which gathers data from supercar on the race track and that enables further analysis and suggest changes to the driving style, leading to improvement in performance. The second pillar of our offering is human machine interface innovation, which typically covers projects in the area of rapid prototyping, technological advisory, concept car creations and trainings. Good example of the project from this category is the work that we have done for one of the OEMS, which involved building a concept interface to verify usability aspects of the very large display pillar to pillar. Typically, that advancement is now on there to interact via a touch, but this cannot be achieved with some a large display. Together, we verified alternative approaches. As you may see, there is a lot of synergy with the overall Siili strategy and the digital experience approach that Andreas has been presenting earlier. Let me also explain where this 417 kilometers per hour on the slide came from. It is a top speed of the fastest car that our software touches. Before I move to overall auto industrial situation and how we see COVID impacting us, I would like to show a short video presenting our work. [Presentation]

Year 2020 has not been easy for the auto industry, and Siili Auto is not an exception. Automotive market is forecasting a 20% decline in the new car registrations in the 2020. Such drop in sales, especially even the most robust companies on the market, and has enforced budget cuts and delayed decisions on the new projects until customer demand is back. In the response to the market situation, Siili Auto has been adjusting cost reduction -- have been adjusting with the cost reduction measures that began in April 2020. As of today, we observed gradual recovery of the business. Since June, every month, our sales have been improving. Current signals from the market are positive. Main OEMs have been recently disclosing quarterly results, which were above market expectations. Q3 has been first quarter when the new car registrations grew on a year-to-year basis, driven by the strong demand in Asia market. Undoubtedly, short-term COVID has impacted auto market, but in the long term, as indicated by the Volkswagen group CEO, digital transformation won't be held backed by corona, but actually accelerated by it. As part of that transformation, Volkswagen is planning to invest EUR 14 billion till 2024 in building the IT expertise. We at Siili Auto are sharing, the few challenges observed this year are only short term. As mentioned earlier, we have 2 segments in our offering: first one, development; and the second one, innovation. We are strengthening both of them through the new partnerships. On development side, we have recently team up with the Epic Games, which is well-known game producer and publisher, with annual revenue of EUR 5 billion. Probably best known from its Fortnite title and recently have gone in battle against Apple to challenge the app's terminal point. Epic Games also develops a tool chain called Unreal Engine, which is widely used in the gaming industry. In general, gaming platforms have been already used in the automotive industry for a while, create -- for instance for creating visualizations, advertisements and the demos, but all of that happened outside of the car. This is the very first time that the gaming platform is entering into the car itself. And we are happy to be part of that story as the forerunning among very few selected initial partners such as Qualcomm, BlackBerry, Mapbox and Vectorform. We are the only software services provider in Europe, who got to that level of partnership with the Epic Games yet. The very big asset of the tool chain is no-code development approach, with shortened time between design and seeing it in action in the car, so-called design-to-target in the automotive jargon. I'd like show you a very short video presenting what we have done to demonstrate the power of the 2. [Presentation]

At the same time, we are also strengthening the second pillar of our offering, innovation. I'm proud to announce that our new innovation partner is Pininfarina. If I would need to describe Pininfarina in the single word, I would just say, a legend. As simple as that, a legend. Company has been founded in 1930 by Battista "Pinin" Farina, has 90 years of glorious history. Almost 70 years of very close cooperation with Ferarri. It has been behind the greatest designs of brands like Fiat, Alfa Romeo, Lancia, Jaguar and even BMW and Audi. Pininfarina's Running Sculpture is the first car in the world permanently displayed in the Museum of Modern Art in New York. Although they are now part of the big group, company is still family-run by Paolo Pininfarina, the grandson of Battista. I would say, Pininfarina shares common work principles with Siili, passion and craftsmanship to name a few. Pininfarina has exactly the same challenge as the entire automotive industry, how to master digital transformation. And that was the key driver for our paths to cross. We decided to combine Pininfarina's heritage and its experienced design together with the Siili Auto creative technology. I think the best way to describe what we are capable together of is to give the voice to our partner. Let me read what Kevin Rice, Head of Digital Strategy, said. "Siili Auto team has already convinced us by the exceptional commitment to our vision of the future of the cars and mobile. By combining our experience design competencies and the Siili Auto creative technology knowledge, we create unfair advantage for the new product innovation. I'm looking forward to our future collaboration." Let's take a look on the first project we've done together. The Pininfarina AutonoMIA has been developed for the Geneva 2020 Auto Show and is setting the benchmark for responsive driving experience, combining sensing, software and hardware. Let me invite you to watch a video of the project in detail. [Presentation]

To summarize, Siili Auto is navigating COVID-19 and emerging stronger. COVID-19 has impacted the auto industry, and the Siili Auto is not an exception. Since June, we observed gradual business recovery. We strengthened our competitiveness through new partnerships, with Epic Games on the development side and Pininfarina on the innovation side. We aim to outlast COVID-19 and come up stronger. On that note, I'd like to thank you and hand over the presentation back to the -- another side of the Baltic Sea.

Good afternoon, everyone. My name is Aleksi Kankainen, and I will guide you through our financial performance over the past years as well as the key financial targets going forward. Year 2020 has been very exceptional in many ways. The COVID -- ongoing COVID crisis has affected all of our lives, and the business environment is totally different than what we predicted a year ago. However, in Siili, we've managed to grow organically, and we have improved our profitability in this situation. Overall, Siili is financially in a stronger position than what we were a year ago. And how have we done this really? Let me say a few words about our long-term customer relationships. The picture here illustrates our organic growth path starting from 2017 to 2019. And as you can see, the main part of the organic growth is coming from our existing clients. What does it mean? To us, it means that when we manage to acquire a client, they tend to stay with us. In order to keep that, we have to deliver according to expectations in order to meet the customers' expectations. On top of our existing clients, we acquire new clients every year, and that is really the fundamental part of our organic growth moving on. Where is all this actually taking us? Let's look at our revenue development starting from 2016. In 2016, Siili was a company with annual revenue below EUR 50 million. Up to end of quarter 3, this year, calculated as last 12 months, the revenue increased to EUR 83.5 million. So essentially, Siili is now bigger than ever. In 2019, the organic growth was 8.5%. And at the end of quarter 3, this year, year-to-date growth was plus 5%. So there is some COVID impact in our top line, mainly in Siili Auto, and I will come back to that later. The overall growth rate from 2016 is 15% annually, including acquisitions, where the last one was 2018 when Siili acquired VALA. And of course, we're really happy with the development in VALA. The financial target for the future inorganic growth is the same as what we stated a year ago. So for 2021, 2022, it's 10% annually. And on top of that, we want to boost the revenue with acquisitions. But Siili wants to grow with profitability. The profitability is now on the right track. In 2018, there was a decrease compared to previous year's level. That was due to a number of reasons. The utilization rate in Finnish operations was below our target. We made some investments to international business and also, there were some one-off indirect costs hitting the profitability in 2018. After that, we have improved the profitability in 2019 and also this year. The key drivers are, of course, organic growth, both in VALA and our core business, the organic growth has been good. We've improved consistently the utilization rate in Finland since 2018. And there is still things that we can improve on that side. Furthermore, we have good trend in the indirect cost efficiency, not only this year because of some one-off savings that we have gained in travel costs and so on because of COVID, we have also invested in the indirect side like to marketing and creating a new brand. So effectively, this means that the efficiency of the organization has improved. The same indirect cost base can manage higher group revenue. On the negative side, of course, international business and profitability in Siili Auto has been affected by corona, and that is pressing down the profitability this year. All in all, our adjusted EBITA target going forward is 10% for 2021 and 2022. Moving on to our international business. It's clear that we have encountered some headwind in the international business due to COVID-related issues in the whole automotive industry. Calculated as the last 12 months' trend at the end of first half this year, the decrease in the international revenue was roughly minus 20%. And respectively, the share from the group revenue in international business decreased from almost 15% end of last year to first half this year. Year-to-date, the decrease this year was even higher, over 30%. Because of this, obviously, we were forced to carry out the cost savings in the automotive business, as Wojciech previously described. We had to adapt to the current market situation. Overall, the international business has grown from below EUR 4 million in 2016, reaching almost EUR 11 million last year. So we still see that the COVID hasn't changed the overall demand in the auto business, and the digital investments to autos will still continue. Our financial target for the international business is the growth rate, and the growth rate there should be double compared to our domestic business. A few words about our employees. At the end of quarter 3 this year, there was a decrease in our employee number compared to end of 2019. As mentioned, the cost savings in the Siili Auto was a big part of this but also our recruitment pace this year has been slightly lower than previously. Main reason here is that we have focused in maintaining the workload of our existing employees. That way, we have also saved our profitability. With the higher utilization, we have maintained also the organic growth. When it comes to recruitment, we are now ready to move on once the market situation is getting better. And it's worth mentioning that on top of our employees, we have a very good subcontractor network managed by our Siili One business unit. At the end of quarter 3, we had over 100 subcontractors calculated as full-time employees serving our clients. And that's very essential part of our business. We need that flexibility in order to serve our clients as well as we can. As mentioned, Siili is in a strong financial situation at the end of quarter 3. We reached very high ROI of 35% at the end of first half this year, mainly driven by the organic growth development, but also due to the one-off capital gain we reached from the RoboCorp divestment, in total, of EUR 4.5 million. Also, it's worth mentioning that the dividend payment this year is hitting the second half of the year, so slightly later than normally because of the COVID pandemic. Our strong balance sheet supports our growth ambitions. When we look at the main financial targets, the net debt-to-EBITDA ratio, we want to stay below 2. At the end of first half 2020, we were close to 0, including the IFRS 16 liability. Also, the dividend payment target is 30% to 70% of net profit annually, and both targets remain the same, as stated previously. A few words about 2020. Siili withdrew the financial guidance in April for the current year because of the weak visibility on the market situation caused by the COVID pandemic. With our quarter 3 business review, we issued a new financial guidance for 2020. We estimate that both revenue and adjusted EBITA will be higher than previous year. In 2019, Siili revenue was EUR 80.5 million and adjusted EBITA, EUR 5.2 million. And as mentioned, we retain all our long-term financial targets for the coming 2 years. So to summarize the financial things, Siili is in a good position to move on. We have solid long-term customer base. Our profitability is on the right track and is continuing to improve. It's no doubt that there is some uncertainty in the air because of the COVID, but our strong financial position is very good to support our growth ambitions. Thank you. And now I guess it's over to Q&A.

Okay. Let's start with the Q&A. And then Alex, you can also shift to that direction. And we're going to go through the questions on a first come, first serve purpose or basis. And we'll start with a question from [ Pontus Juntunen ]. What is the target number for FTEs working at core Poland for the next 12 and 24 months?

As said, we have now 14 people there. We are planning on the growth and, at the moment, it's too early to say. But if you look at the Polish companies and the size of the companies, you can see that they have been growing pretty well. We have possibilities and good name to hire people in Wroclaw and in Szczecin where we have offices. So I don't see, let's say, the recruitment as a risk or bottleneck for the growth. It's more about speeding up the sales. So the first thing what we are going to do is that we will hire people to accelerate the sales. And then we will step-by-step hire new people to the team. And overall, let's say, our group strategy is -- and the targets are saying our target to grow internationally is double to the domestic growth. So we are we are planning for big growth there.

Good. Then we have another one from [ Mikael Rautanen ]. Is your M&A focus more in Finland or abroad? What countries are interesting for you?

So first of all, of course, we look at by competence areas, the digital experience has the highest priority. Then of course, we are interested about other areas as well, as an example, the automation, what was just presented as well as DevOps, VALA type of acquisitions. So we are open to hear and analyze companies, but as said, it's -- digital experience has the highest priority. When it comes to the geographic focus, first of all, for us, it's very important that we are growing profitably in Finland. So it's always interesting to look at opportunities in Finland. But we're also looking at opportunities outside Finland. There, we are necessarily looking at nearby markets in the Nordic countries, but also in Western Europe. There are many countries as well as with huge population. And overall, digital capabilities are not at the level as generally in Finland.

Good. Then we have quite an extensive question from [ Jacob Turpeinen ]. Let's see how far we can get. In terms of organic international expansion, do you expect the launch of new offices to temporarily erode your profitability and how much IE? What kind of launching costs and first year profitability are you accepting when opening new offices? What criteria and logic you need to have in place to take the decision to enter into new geographical market?

That's a pretty detailed question. And of course, every -- this kind of business case is a separate business case, and I can't give a general answer to that. What is good thing about COVID is that remote working is much more accepted. So basically, it means that most likely, we don't need so big office spaces. And that, of course, gives us, let's say, the entry point to new market is lower. Still, the fact is that going to new market, languages and cultures play a role. So it's very critical that we have people that have customer contents and that they are able to discuss with customers management, not only with IT people, but also with the business people. So most likely, let's say, the people with kind of design, consulting type of background is, of course, very valuable in entering into the market. What is good is also that we have plenty of resources in Siili today, and we have a partners network. So it means that when we are entering new markets, we can do it step-by-step and utilize the network we have -- today we already have.

Good. Then another one from Jacob. How the refreshed strategy will shape your personnel strategy? And will the increased digital experience focus mean new hires? And could you elaborate on the recruitment market in Finland currently? How easy it is to find employees to fuel our growth?

So already -- there's also quite many questions. One thing is that, yes, we have changed our organization model, and we are going to develop that further. And the new organization is organized around these offerings, and digital experience is one example, and Andreas was just nominated to management team to hit that. Another team is creative technology, and then we have a cloud and DevOps. These teams are inside Siili's core business, core business here in Finland. And these teams have an end-to-end responsibility for planning, what kind of the consultants we need in the future and also for training and capability development and also setting up the retirement plans. And then, of course, those plans are executed together with the HR. Overall, Siili has a good reputation among people. And if I just look at the current situation is, we are interested in getting more and more people that have a very strong background. So it's quite visible that Siili is attractive. We have a good story. Everything what we have presented today, like a brand new strategy, going faster to the international markets, all that is attracting, of course, talents. But anyway, that is of course -- that is an area that we need to continue to work on. So I don't say that is easy, definitely not. This is a people's business, and we, of course, want to hire the best people that have a right fit to our culture as well.

Good. Then a few quite specific questions from [ Mikael Rautanen ]. Let's start with the first one, how much of your core Fin business is based on time and material billing?

That's a very specific question for a very specific man.

Yes, exactly.

So that's obviously the main part of our revenue. It covers about 90% of the core business revenue.

Good. And then another one, what is the role of Siili One in the strategy? Is it part of core?

Yes, it is part of Siili Finland's core. And the role is to complement and extend our resources with the partner network. So we have a good benefit that we have a strong partner network and also, we are able to expand that. That gives us a lot of flexibility. And you can also see then during this year, on purposely, we a little bit slowed down on recruitment to make sure that we are able to safeguard employment of our current employees. We have a little bit increased subcontracting, and then we have also increased the utilization of our team.

Good. Then again, a really extensive set of questions from Jacob Turpeinen. I will now split them in parts so it's easier to answer. Thank you, Jacob, for your interest. You have solid financial position, and you have been digesting VALA already more than 2 years. How has COVID impacted the M&A market? And when we should expect Siili to reactivate in acquisitions?

We have actually reactivated. In quarter 2, we started scanning the market, based on the strategy, actually, what was now presented. And overall, of course, COVID is slowing down a bit acquisition processes, as you can't have, let's say, the negotiations in the normal way, but it doesn't stop it, but it a little bit slows down. We believe that -- and what we have seen, there are companies that are a good fit to us, and we have some processes going on. We try to finish them, of course, as fast as possible. But also, we are not forced to make any acquisitions too fast, which is extremely important that we find complementary businesses that are able to either maybe both increase our customer base and then give us more depth in expertise. Always looking at the commercial synergies. We are not -- I'm sorry, I'll a little bit continue because there are many questions about M&A. We are definitely not looking after, let's say, problem companies. So we are focusing on growth.

Okay. Just continuing from there a bit. If there would be a potential acquisition, which kind of competencies and know-how are we looking for?

I think I already mentioned, basically, digital experience has the highest priority. But then, of course, automation, DevOps are interested. Also there might be some areas companies that could be interested in the area of data and artificial intelligence.

You are now also searching for potential takeover targets internationally. Is there major differences in the transaction multiples if we compare Finland and the countries you are interested in?

First of all, let's say, takeover, it doesn't sound a good word. Making a takeover, especially hostile, in this industry would be suicide. I wouldn't recommend it. So we are looking after a company that has a good fit and has a really capable management. They need to have proven that they are able to grow, and they are able to grow profitable. And we need to find good tangible synergies that we are really feeling that we are able to accelerate the business growth. So in that way, we might be a little -- we are not -- we're trying to be really strategic and really pragmatic when we look at acquisitions.

Good. Then again, we move to a bit of a different subject, the competitive field. There's a question from [ Mikael Rautanen ], who do you see as your main competitors in Finland in digital experience?

In Finland, it's definitely it's Reaktor. They are doing a good job. And going, let's say, abroad, there are, of course, a lot more companies. Eden is one example. Of course, Fjord. Then, of course, let's say, big digital agencies are there. But okay, we are not -- we don't face them too often. Today, we are mainly still in the digital experience. In most cases, we have a competition here in Finland. But we see that in the market, of course, it's natural, and we see there is movement that digital agencies and digital service companies are getting closer. The driver for that is very natural. If you look at companies overall in the digital agencies space, more and more of the work is digital. And if you think about Andreas' presentation, it's not easy to build up the capabilities what you need to build to make the digital experience real.

Good. Then there is a Skaler-specific question from [ Jacob Turpeinen ]. Could you give any kind of indication of the sales and growth of Skaler? Also, could you elaborate a bit more on the current competition environment of Skaler? For example, how does Skaler position in the Finnish market in terms of size and competence?

First of all, Skaler has an objective to be the leader in open source-based automation. Skaler is part of Siili's core business so we are not publishing the numbers. What I can say is that Kristian's team has done a fantastic job. So we are ahead of budget, and we are also profitable in this year, which is a great result, and we are ready to push that for the next year.

Good. Then a question related to sales from [ Mikael Rautanen ]. How does your sales organization work? Does each business in core and portfolio have their own sales?

Our sales of -- Siili's core business has an own sales organization. Then portfolio companies have their own sales organization. So all of them have own sales organization, but then there is -- there are common meetings that we are -- on a weekly basis that we are sharing opportunities and also staffing teams across businesses.

Good. Then there is a question of breaking down the numbers from [ Pontus Juntunen ]. Investors would love a breakdown of profitability figures by segment or business unit, for example, core, auto portfolio companies. Are you planning to start reporting segment profitability figures?

That's a very good question. We are planning on that, but there is no timing or set target for that reporting.

Okay. Then Joni Grönqvist has a few questions from Inderes. Andreas mentioned demand on markets where you are not yet. Could you maybe elaborate a bit more on this? Is auto customers or customers that -- is it auto customers or customers that you can do near-shore? Or what kind of demand?

There are -- we have quite a good name. So we, time to time, get leads and contacts from international markets. And to some of them, we have been able to respond. And going forward, we will build up our capabilities. Establishing Siili's core in Poland is one step in that direction. All in all, it's making the digital experience real is, of course, you need skilled people that are able to do it. Many of -- most of the people actually can work in a network. So the remote working makes this faster and more flexible. But still, we need to have a lot of people that are speaking the language and have the culture and are able to build up the relationships with the customers' management. So this is also a thing that has to be built up step by step. We have, as an example, Siili's core Poland, they have a couple of customers that would have liked to buy from us much more than we have been able to deliver so far. So there, we have obvious a couple of clients that we can expand.

Good. Then there is a question related to it sector from Joni Grönqvist still. There are strong balance sheets across the sector and risk for high valuations on possible targets. Can you comment on how you see the current valuations? And what your targets are?

I'm not going to say what our targets are. And -- I wouldn't say that the prices have inflated. It's -- they are, overall, let's say, on a quite a similar level like they have been in the -- historically, at least in the discussions what we have seen and also that advisers that are giving it. So in that respect, it's -- I don't see at the moment a big change. But also, one could say that COVID hasn't really dropped the price expectations because it's obvious that COVID is a good opportunity for digital business. So of course, sellers know it as well.

Good. And then there is one more question left from [ Mikael Rautanen ]. We are right on schedule in that sense. Which of Siili's offerings currently get most CEO focus and why?

It's -- I would say, definitely, digital experience, it is -- there is -- we are much closer to the strategy. And therefore, the business management is much more interested on that. But it's good to also see that actually, COVID has changed -- made a big change so that overall digital and IT management teams are much more interested, and they also understand a lot more about digital and IT. So in that way, it is actually getting -- all around is getting attention. Maybe one part that is maybe not yet really understood is that is the DevOps and quality and testing requirements. So in the future, as competition is done more and more in digital, it means that it's not enough that you develop something now. You need to be able to renew it faster and faster. And if you are not able to manage that process in a good way, you actually risk in many of your critical processes. And that is -- it's not easier to understand, but this is maybe one of the topics that is not -- hasn't yet got the attention that actually top management should understand this from the risk management point of view.

Thank you. That was it for the questions and answers. And now, I guess it's time for a short summary from Marko. There you go. Thank you so much for your interest, by the way, really good questions.

Great. So I will take them? Okay. All right. I have only 2 slides. One is about COVID-19 and how it has impacted Siili. I said, overall, we have been quite -- we have been managing the situation pretty well. Of course, let's say, starting up new client relationships or starting up new big programs is harder and takes more time. The good thing is that we have quite a broad customer portfolio. Also Siili's role with the customers, we are often working in quite critical processes. So all of that has stabilized business pretty well. Then is looking at the development and, let's say, comparing the businesses in this COVID is very clear. This is mainly driven by the customer industries. So in our case, automotive industry was heavily impacted in the springtime. The other businesses, the customer sectors were much, much less impacted. But then in quarter 3, we started seeing in core Finland in the other industry segments also slowdown, which is, of course, understandable that in this kind of situation companies are a little bit more cautious on starting new programs, maybe delaying them a bit and also limiting the team sizes. Overall, we haven't seen in any businesses in Finland or in Siili Auto or VALA any major customer losses or any major projects that would have -- we would have lost because of COVID. It's more about customers' natural reaction to COVID. Also, if you look at our customer portfolio, we have a good customer sector. We have a banking and insurance and public that all of them have been pretty stable in this situation. Also Siili as a company and how we have been able to operate the transition to remote working has been very small. And also to Siili's spirit, despite all the challenges, all the changes what we have done, the Siili spirit has stayed in a very good level, and we have a very high energy and fighting spirit. Going forward, it's -- we really believe that this is a paradigm change and speeding up the digitalization from the physical services to the digital services. And overall, that is happening in all the stakeholders. So when we are talking about digital experience, it's all the stakeholders. It's customers, consumers. It is employees. It's taxpayers. It's, of course, suppliers, different kind of partner network. There's plenty of things that is happening pretty fast. And also, technology is developing. There are more and more possibilities within digital experiences and also how you connect the digital experience to the creative technology. Remote working is here to stay. Even after, hopefully, the COVID will be over as soon as possible, but I believe that it's going to be -- make a big change in how we work. And remote working is -- it will be balanced with the customer-facing work. And so -- but the good thing is that, of course, one key thing is that most likely, we are not -- don't need to invest so much on offices. That is one benefit. Another big benefit is that we are able to staff international teams much faster and much more flexible as we don't need to care about people having them in a certain location. And so we can staff them quickly. We can also change the team compositions much faster. So as a summary for this whole day. We are -- as a Siili, from the strategy point of view, we are building a digital forest. And to make the digital forest healthy growing as businesses, the core businesses or other portfolio businesses, and you can also look at it from the employees' perspective, is this a good place to learn and grow? We are working very actively on the platform to create the environment. We have a vision to be the best digital community for consumers, customers, Siili's, our partners for entrepreneurs. And I think we are on a very good role in that work. We have a 3-pillar strategy that is -- gives us good opportunities to grow in a profitable way. We are making sure that the Finnish core business is growing profitable with this focus on digital experience. We are continuing to boost portfolio companies, and we are accelerating the internationalization by establishing new core businesses that have a similar strategic and operating model like the Finnish core business. And example today was that we announced that Poland is our second core business. Corporate model is giving us a lot of flexibility, and we are active on the M&A side. So we believe that we have a good opportunity to meet long-term financial targets, and M&A can accelerate that quite well. But still there, I have to say, I have worked in my career quite a lot with M&As. The learning is that it's better to plan well and do it carefully. And when you have done that, then it's time to make sure that the business is growing in a healthy way. We have a very good position to move ahead. We have a solid strategy. We have a brand that is supporting us, and we have operating model that is now going to speed up this execution. We have a very strong financial, a solid balance sheet to speed up this. Thank you. I hope that this gave you a good picture of Siili. I also hope that you liked the videos and our brand. We wanted to make this much more visual than we have had in the past. Thank you.