Preface of the
Management Board
Dear Readers,
Fiscal year 2022 was very special for us: we opened a new chapter in the history of our company. We still remain committed to ensuring sustainable success for our customers by helping them achieve their business goals with the aid of our software products. Russia’s attack on Ukraine and the resulting increase in energy costs, as well as higher costs in general, have put an enormous strain on the property industry. However, we believe that with the help of the ongoing digital transformation, we will be able to meet these challenges in a united effort with our customers, business partners, employees and investors.
Key strategic initiatives
As the newly formed Management Board, with Rumyana Trencheva as Chief Revenue Officer and Dr Ernesto Marinelli as Chief People Officer, we have developed several strategic initiatives aimed at increasing profitability and added value for our customers. In 2022, we began to set up a completely new partner programme that will allow our customers to benefit from software solutions and services from different providers that can be seamlessly integrated into existing Aareon ERP systems. This was made possible by our new Aareon Connect suite in conjunction with the iPaas (integration platform as a service) solution from Locoia GmbH, which Aareon acquired at the end of 2022.
In addition to our product portfolio, we also had a very close look at our different national markets, and came to the conclusion that we need to refocus our product design and product range to cater to the specific local requirements of the individual country. Our new revenue organisation is aimed at being able to respond even more efficiently to the needs of our customers. For this purpose, we will, among other things, roll out the CRM (Customer Relationship Management) software Salesforce throughout the Group to manage our operational processes more efficiently.
Inorganic growth through mergers and acquisitions remains an integral part of our strategic initiatives. In addition to the aforementioned acquisition of Locoia, our successful bid for the Swedish Momentum Software Group also deserves mention. The company develops, sells and implements Software as a Service (SaaS) solutions for energy monitoring and property management. Aareon Nordic and Momentum will operate jointly under the Momentum Software brand.
Partner up
Aareon Connect opens up ERP systems for partner solutions – read more
Alongside customer- and product-oriented strategic initiatives, our employees, in particular, are a further key factor for our success, for which their mental well-being is a crucial prerequisite. The “MIND your health” campaign was therefore launched on the occasion of the first company-wide Mental Health Day in 2023. The new Board function “People & Culture” focuses on the strategic development of a resilient, diverse and inclusive working environment, and is underpinned by the appointment of our first Chief Diversity, Equity & Inclusion Officer as of 1 February 2023. Aareon fosters a culture that embraces the new and unusual as valuable assets and promotes an inclusive environment in which a sense of belonging is deemed beneficial and productive. All employees are valued for their unique perspectives, respected as equals and individuals, and given fair access to all opportunities that arise. This enables everyone to focus on innovation and success for our customers.
Healthy Minds
How Aareon ensures a healthy working environment – read more
To better harness the skills and potential of our people and optimise their further development, we are enlisting external digital support, starting with the introduction of the Workday management software in 2022.
Future Talents
Qualified workforce is the key to digital transformation – read more
On the way to becoming a leading SaaS company
Aareon aims to become the leading Rule-of-40 SaaS provider for the European property industry. With a Rule-of-40 value of 39%, we already came very close to achieving this goal in fiscal year 2022. Recurring revenue business grew by 19% year-on-year. Licensing revenue decreased by 10%, reflecting the shift to subscription and SaaS models. Despite the challenging environment, Group revenues increased by 15% to €308 million (from €269 million in 2021). Adjusted EBITDA increased by 13% year-on-year to €75 million (from €67 million in 2021). These figures are in line with the 2022 guidance issued in 2021. To continue the innovative and future-oriented development of our product portfolio, we again invested significantly in research and development in 2022. Total expenditure in this area amounted to €59 million (compared to €52 million in 2021).
We have ambitious plans for the future. Under the motto of “Future is a Team”, we aim to unite and act together to shape the digital, innovative and sustainable future of the housing and property industry. Close communication with our stakeholders will play an important role in this process. This is the only way we can continue to improve on a daily basis! We would therefore like to thank you all for the many open and honest discussions and feedback that inspire us every day.
What’s ahead?
Members of the Board talk about the future of Aareon – read more
Best regards
Harry Thomsen
Management Board 2022
Dr André Rasquin
Chief Technology Officer
Harry Thomsen
Chief Executive Officer
Christian M. Schmahl
Chief Financial Officer
Dr Ernesto Marinelli
Chief People Officer
Rumyana Trencheva
Chief Revenue Officer
Dr Imad Abdallah
Chief Digital and Ventures Officer
Harry Thomsen
Chief Executive Officer
Rumyana Trencheva
Chief Revenue Officer
Dr Ernesto Marinelli
Chief People Officer
Dr André Rasquin
Chief Technology Officer
Dr Imad Abdallah
Chief Digital and Ventures Officer
Christian M. Schmahl
Chief Financial Officer
What’s ahead?
What does the future hold for Aareon? Members of the Management Board talk to us in short interviews about what lies ahead for the company.
Q&A: Future Talents
To drive the digital future of the property sector through the promotion of talent: this is the declared goal of the cooperation between Aareon and the EBZ Business School.
Partner up
By opening its digital ecosystem to partner solutions, Aareon Connect is facilitating interaction between the diverse players in the property sector.
Healthy Minds
Protecting mental health in the changing world of work: how does Aareon ensure a healthy working environment for its employees?
