Innofactor as an Investment

Our Interim Report January−September (Q3) will be published on October 30, 2018.

A Leading Nordic Provider of Digitalization and Cloud Solutions

Innofactor is a leading Nordic provider of digitalization and cloud solutions. We have Microsoft Ecosystem's leading expertise, the most comprehensive offering in the Nordics, and approximately 600 eager and motivated top professionals in Finland, Sweden, Denmark and Norway. We serve over 1,500 commercial, public, and third sector organizations. In 2013 to 2017, the annual growth of our net sales has been approximately over 20%. The Innofactor Plc share is listed in the technology section of the main list of NASDAQ Helsinki Ltd.

Latest Stock Exchange Releases

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In the second quarter, the net sales have returned almost to the same level as in the comparison period; corrective actions to improve profitability have been made and are expected to have a positive effect in the third quarter

January–June 2018 in brief:

  • The net sales were approximately EUR 33.5 million (2017: 34.4), which shows a decrease of 2.7%.
  • The operating margin was approximately EUR 0.4 million (2017: 1.5), which shows a decrease of 74.3%.
  • The operating loss was EUR 994 thousand (2017: operating profit 119), which shows a decrease of 935.3%.
  • The weaker than expected profitability was contributed to by the lower than expected net sales.
  • Innofactor got several significant orders in the first half of the year, for example, HAIPA for the Legal Register Centre, approximately EUR 2.0 million; Swedish adult educational association Folksuniversitet, approximately EUR 0.5 million; the Swedish Teachers' Union Lärarförbundet, approximately EUR 5.2 million; and the trade union Kommunal, EUR 2,8 million at the minimum and EUR 5.2 million at the maximum.

April–June 2018 in brief:

  • The net sales were approximately EUR 17.0 million (2017: 17.1), which shows a decrease of 0.8%.
  • The operating margin was approximately EUR 36 thousand (2017: 567), which shows a decrease of 93.7%.
  • The weaker than expected profitability was contributed to by the lower than expected net sales.
  • The operating loss was EUR 630 thousand (2017: -103), which shows a decrease of 511.7%.

Q2 2018 video comments

Innofactor's CEO Sami Ensio's result interview by Inderes's CEO, analyst Mikael Rautanen. The video is in Finnish with English subtitles.

CEO's Review

July 24, 2018

We estimate that a turn in the business took place during the second quarter, and this should manifest itself as improved profitability in the third quarter

The net sales in the first half of 2018 were EUR 33.5 million, which shows a decrease of 2.7 percent from the last year. The operating margin (EBITDA) was EUR 0.4 million (1.1 percent of the net sales), which shows a decrease of 74.3 percent from the last year. The result was significantly lower than the goals we had set.

Especially in the second quarter, we made plenty of corrective actions, and we estimate that they will significantly improve our profitability in the second half of the year. For example, at the end of the review period, Innofactor had 29 employees (4.7%) less than a year before, which is estimated to have a significant positive effect in the profitability of the third quarter. In Innofactor's history, the end of the year has typically been better in terms of operating margin than the beginning of the year also in other respects. However, raising the profitability to the target level still requires special attention.

We have made remarkable progress in implementing Nordic operating models and systems, and this has had a positive effect in controlling the company's operation. We implemented the common ERP system in Sweden at the beginning of July 2018. Now the system is in use in all countries. During second quarter remaining Lumagate companies in Sweden and Norway have been rebranded under Innofactor brand and all Group brands have been now unified.

Innofactor's vision is to be the leading implementer of cloud solutions and digitalization in each of the Nordic Countries. We believe in our chosen Nordic strategy and in reaching our long-term goals. This requires perseverance and determination from the company's management and employees as well as investors. Innofactor is still actively looking for new strategic partnerships in the Nordic Countries. The Group's goal is to grow both organically and through acquisitions.

Sami Ensio
Innofactor's founder, major owner, and CEO

Business Environment

We Expect Market Growth in 2018

The key innovation trends and drivers of change in the market include augmented reality, virtual reality, the Internet of Things (IoT), artificial intelligence, robotics, and blockchains, with facilitating roles being played by software services moving to the cloud, data analytics, social media, and the use of mobile devices. The purchasing behavior of our customers has continued to evolve as part of this business transformation. Our customers' expectations for their IT provider are characterized by a greater focus on business benefits rather than technological benefits. Our customers are looking for more out-of-the-box solutions that do not require extensive customer-specific customization. In addition, customers are increasingly seeking continuous services instead of large one-time projects.

We estimate that the growth rate of the Nordic IT services market was approximately 3–5 percent in 2017. We further estimate that the growth rate of the Nordic IT services market will again be 3–5 percent in 2018. Our estimate is based on forecasts by research institutes and our own views regarding the development of the market.

Becoming the Leading Provider of Cloud Services and Digital Transformation in Each of the Nordic countries

We have made a strategic choice to focus on solutions implemented with or supported by Microsoft platforms, and we have achieved a leading position in the Nordic region in this market. Going forward, our aim is to become the leading provider of cloud solutions and digital transformation in each of the Nordic countries. Our long-term goal is annual growth of 20 percent, the majority of which will be achieved organically, along with profitability of approximately 20 percent.

The competitive landscape for Microsoft-based solutions in the Nordic region is fragmented. The first group of competitors consists of large enterprises that operate in all of the Nordic countries. They provide a wide range of IT solutions that are needed by organizations using several competing technologies, one of which is the Microsoft ecosystem. The second group consists of medium-sized companies that focus on a niche solution area at the Nordic level, also using several different technologies. The third group consists of mediumsized companies operating in a single country, typically providing a broad range of solutions based on several competing technologies. The fourth group consists of small companies that only operate in their domestic market focusing on certain clearly defined solution areas, technologies, and industries.

Microsoft's fragmented Nordic partner network, which consists of small and medium-sized IT companies, continues to offer interesting acquisition opportunities for us. In the future, our acquisition strategy will likely be focused on slightly smaller companies that operate in a single country. This will help us expand our offering at the country-specific level as well as acquire cloud-based product and service business. Our good reputation, fast and profitable growth, successful acquisitions, and entrepreneurial spirit make us an attractive partner with whom to develop business.

Mission, Vision and Strategy

Strategy and its realization in the review period

Innofactor is the one of the leading implementers of cloud solutions and digitalization in the Nordic Countries. Innofactor has the widest solution offering and leading know-how in the Microsoft ecosystem in the Nordic Countries. Innofactor has approximately 600 enthusiastic and motivated top specialists in Finland, Sweden, Denmark and Norway. Innofactor's customers include over 1,500 companies and public administration and third sector organizations. During the years 2018–2020, Innofactor will primarily strive to unify its operating model and offering in the Nordic Countries in its selected areas. Unifying the offering may take place either through organic growth or selected acquisitions.

Innofactor's mission:

We empower organizations and people to make a difference in the digital world.

Innofactor's vision:

We are the leading implementer of cloud solutions and digitalization in each of the Nordic Countries (Finland, Sweden, Denmark and Norway).

Innofactor's strategy for achieving this vision includes:

  • The best Nordic professionals in the Microsoft ecosystem
  • The leading offering in cloud solutions and digital transformation
  • A proactive, value-adding and flexible delivery model
  • Visionary Nordic customers in defined industries

Innofactor's long term financial goal is to grow profitably:

  • To achieve annual growth of approximately 20 percent, most of which should be organic
  • To achieve approximately 20 percent operating margin (EBITDA) in relation to the net sales
  • To keep the cash flow positive and to secure solid financial standing in all situations

In the review period of January 1–June 30, 2018, Innofactor's net sales decreased by 2.7 percent. The company did not reach the goal it had set for organic growth.

Innofactor's operating margin (EBITDA) in relation to net sales was 1.1 percent in the review period of January 1–June 30, 2018. This is low and very far away from the set target level of 20 percent.

The main actions for reaching the approximately 20 percent growth and 20 percent operating margin:

  • In the Nordic Countries, we will focus on those fields and customer segments, which have great growth potential, such as social services and health services.
  • We will improve sales of our products and services to existing customers in order to get a greater share of the budget the customers are using for digitalization.
  • We will invest in using modern digital marketing methods to improve our sales.
  • We will concentrate on management of know-how, recruiting, and resource optimization in the Nordic level.
  • We will move the focus in our offering and net sales more and more to products and productized services.
  • We will continuously improve our specialists' skills, so customers will be willing to pay a higher than the average price on the field for them and our leading offering.
  • We will develop our flexible delivery model, which enables fast added value, in such a way that the amount of unnecessary work is being minimized and our billing rate and customer satisfaction improve.
  • We will invest in operative efficiency by developing the Financial Quarterly Accountability (FQA), internal information systems and predictability.

Innofactor's operating cash flow in the review period of January 1–June 30, 2018, was EUR 0.5 million positive (2017: EUR 3.9 million). Net gearing at the end of the review period was 58 percent (2017: 49.4%). Innofactor's financial stability estimated on the basis of net gearing is good. 

Key Figures






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* Currently, Innofactor primarily monitors the number of active personnel. The number of active personnel does not include employees who are on a leave of over 3 months. However, for 2014 and 2013, the figures include also these persons, so the figures cannot be compared.

Growth and Financial Targets

Innofactor's growth has been fast and profitable. Annual net sales growth from 2013 to 2017 has been over 20% on average.

Systematic Growth since 2000


Innofactor's long-term financial goal is to grow profitably:

  • By achieving annual growth of about 20 percent, of which majority is intended to be achieved by organic growth
  • By achieving approximately 20 percent operating margin (EBITDA) in relation to the net sales
  • By keeping cash flow positive and securing a solid financial standing in all situations

We believe that we can achieve the 20% organic growth by following means:

  • In the Nordic Countries, we will focus on those fields and customer segments, which have great growth potential in digitalization and implementing cloud services. Social services and healthcare along with wellbeing services are an example of a field in which we will focus strongly in 2017 and coming years.
  • We will improve sales of our products and services to existing customers in order to compete for an increasing share of the budget the customers are using for digitalization and to develop customer relationships in long term.
  • We will invest in using modern digital marketing methods to improve acquiring of new customers and to strengthen the customers' image of Innofactor as the leading Nordic implementer of digitalization and cloud services, as well as to improve our sales.

In addition to what was presented above, we believe that we can achieve the 20% operating margin by following means:

  • We will move the focus in our offering more and more to our own products and productized services, which ease our customers' transfer to cloud services and maintenance. Thus, we can continue to offer our customers better services and greater added value, while strengthening long-term customer relationships.
  • We will improve the skills of our own specialists, so that our customers will see significant added value in their know-how as compared to our competitors and will be willing to pay a rate that is higher than the field's average.
  • We will develop our flexible delivery model, which enables fast added value, in such a way that it will further improve customer satisfaction. In the development of our delivery model, we will focus on as efficient planning of the work as possible, while minimizing unnecessary work that will not provide added value to the customer. At the same time, our invoicing rate will improve.
  • In the Nordic level, we will focus on gaining synergies that provide cost savings, for example, by implementing in 2017–2018 the cloud-based Nordic Microsoft Dynamics 365 for Operations ERP system.


Q2 2018

Innofactor's business operations were focused on Finland, Sweden, Denmark and Norway. In January 1–June 30, 2018, approximately 57 percent of the net sales came from Finland, approximately 28 percent from Sweden, approximately 8 percent from Norway and approximately 7 percent from Denmark.

Of the net sales in January 1–June 30, 2018, approximately 48 percent came from commercial clients, approximately 29 percent from public sector clients and approximately 23 percent from third sector clients.


Innofactor's net sales in the review period of January 1–June 30, 2018, came from the following sources:

  • approximately 54 percent from IT system delivery projects and consulting
  • approximately 23 percent from specialist work based on recurring service contracts, such as smaller customer-specific changes and further development of IT systems
  • approximately 18 percent from services based on recurring service contracts, such as SaaS, cloud and hosting services, and from software maintenance
  • approximately 5 percent from licenses, of which the share of licensing income to third parties was approximately 2,8 percent of the net sales

As the ERP system was implemented, the categorization of the net sales was redefined as of January 1, 2018, so the abovementioned shares are not directly comparable to the corresponding figures for last year.

Innofactor's 10 largest clients accounted for approximately 27 percent of the net sales during the review period January 1–June 30, 2018.

Get to know our customer stories 


Our strength lies in our highly competent and motivated personnel. We employ approximately 600 enthusiastic and motivated top professionals in Finland, Sweden, Denmark, and Norway who are united by the desire to work on the front line of innovation and new technology. We take pride in our highly competent professionals and significantly invest in competence development. Our employees maintain and improve their professional skills by acquiring technological qualifications, such as Microsoft Certified Professional, and by participating in training provided by our own Innofactor Academy. Their high level of expertise is evidenced by more than 1,600 individual Microsoft certificates in our organization.

Number of Personnel and Key Figures

Q2 2018 – The number of personnel in Innofactor is 29 less than a year before

Primarily, Innofactor monitors the number of active personnel. The number of active personnel does not include employees who are on a leave of over 3 months. The average number of active personnel in April 1–June 30, 2018, was 597 persons (2017: 609), which shows a decrease of 2.0 percent. The average number of active personnel in January 1–June 30, 2018, was 601 persons (2017: 602), which shows a decrease of 0 percent.

In the review period of January 1–June 30, 2018, the net sales per active person was approximately EUR 56.1 thousand (2017: 57.1), which shows an approximate decrease of EUR 1.0 thousand per person. At the end of the review period, the number of active personnel was 588 (2017: 617), which shows a decrease of 4.9 percent.

At the end of the review period, the average age among personnel remained the same and was 39.4 years (2017: 39.4). Women accounted for 31 percent (2017: 28%) of the personnel. Men accounted for 69 percent (2017: 72%) of the personnel.

Year 2017

Innofactor had a total of 610 employees on average in 2017 (2016: 532), up 14.7% from the previous year. These figures exclude employees who are on leave for a period exceeding three months.

At the end of 2017, the number of personnel was 601 (2016: 591). The number of personnel increased by 1.7%. The average age of the company's personnel at the end of the review period was 38.9 years (2016: 39.4). Women accounted for 28% of the personnel and men for 72% (2016: 28% and 72%).

Get to know our people!

Innofactor Academy Focuses on Competence Development

Two key cornerstones of Innofactor's success are highly competent personnel and the capability for the renewal of expertise. Innofactor established Innofactor Academy in early 2017 to support the competence development of the Group's personnel. In its first year, Innofactor Academy focused on becoming more systematical in competence development, on providing centrally training courses to wider audiences and on improving the visibility of courses for the company's personnel. The Academy has conducted programs on sales management as well as on various concepts, such as PRINCE2 and ITIL. The Academy facilitates the sharing of knowledge and expertise within the company, but also utilizes external expertise on a selective basis. Innofactor Academy's activities have included classroom training as well as online training. The company aims to continue the gradual development of Innofactor Academy and competence development in general.

A Growing Company Needs Harmonized Operating Models

When a company grows, the renewal of its operating model, processes and tools becomes necessary. Harmonized basic processes help support Innofactor's Nordic growth. Annual development discussions and performance management are key management models that are used to ensure the systematic setting of targets, the monitoring of their achievement and the development of the company's personnel. Innofactor harmonized its performance management processes across the Nordic countries in 2017 to ensure that a uniform model is applied in development discussions and performance evaluations throughout the organization. A further goal has been to emphasize the employee's long-term development in the discussions as well as focus on how the employee's current role supports their long-term competence development.

Innofactor has already deployed the Microsoft Dynamics 365 ERP system in Finland, Denmark and Norway, and the use of the system will be expanded to Sweden in 2018. Using a shared HR system enables consistent ways of working and a harmonized management culture throughout the organization. The system also automates the reporting of personnel information and, going forward, it will facilitate better utilization of employee data.

The Leadership Culture Supports Integration

Innofactor's business operations are based on competent employees with a good work-life balance and high work satisfaction. The single most significant factor in employee satisfaction is the leadership capability of the immediate supervisor. Innofactor initiated a systematic leadership development program for team leads. A group of team leads from each country organization was selected for the first three-day program. The program focused on identifying each participant's natural leadership style, applying the right leadership style to different situations, and practicing coaching skills through concrete exercises. The practical program featured concrete exercises to provide the team leads with tools to improve their day-to-day leadership skills. The development of leadership skills is set to continue, and the plan is to have team leads participate in the same program in all of the Nordic countries.


We Help Our Customers to Build a Modern Digital Organization

Our offering and delivery model are designed to deliver our customers long-term value by leveraging new technology and innovations in ways that take into account their current state and objectives.

Based on years of experience working at the forefront of digitalization with more than 1,500 private, public and third sector customers and the expertise of approximately 600 leading business and cloud technology professionals, we have developed a vision of a Modern Digital Organization. It's founded on a framework we're successfully using to help our customers take advantage of cloud technology and new innovations across their organization and operations. The approach is simple and effective, delivering quick, tangible results and paving the way for long-term customer relationships. We start with defining the big picture – helping our customers determine their current state, define their objectives and build a digitalization roadmap for their organization. We then continue our joint journey to build a modern digital organization leveraging the five areas of our framework. Innofactor offers leading solutions, services and products in each area, as well as an agile delivery model that helps our customers to successfully design, deploy and continuously develop new solutions.

Our Solutions and Services for Building a Modern Digital Organization

Our Modern Delivery Model Ensures Effective Deployment and Adoption to Maximize the Lifetime Value of New Solutions

Our delivery model is based on years of experience in delivering both traditional IT projects as well as cloud services. It consists of five stages, each of which delivers our customers quick, tangible value. We offer our customers five productized delivery models, called Journeys, that are founded on our Modern Organization framework. The value of our deliveries is based on not only helping our customers to design and implement a specific solution, but also supporting them in adopting it within their organization and evaluating its impact to their business processes and IT architecture. In our delivery model, we focus on providing managed services and continuous development of our solutions throughout their lifecycle.

read more about our solutions for modern digital organization


Our aspiration is to grow organically and through acquisitions. Our past acquisitions are as follows:


10 October, 2016
Innofactor signed a contract to acquire the entire share capital of the Lumagate group.
See Stock Exchange Release for more details.

22 December, 2015

Innofactor signed a contract to acquire the entire share capital of the Swedish company Cinteros AB.
See Stock Exchange Release for more details.

22 December, 2015

Finnish Arc Technology, which is focused on HR systems, bought Innofactor Plc's HRM (Human Resources Management) business.
See press release for more details.

31 December, 2013

Innofactor signed a contract to acquire the entire share capital of Enabling Group.
See Stock Exchange Release for more details.

30 September, 2013

Innofactor acquired Dynamic Team (company name Lainetar Oy, based in Tampere, Finland) and its business in order to strengthen its offering in the Microsoft Dynamics AX business area.
See press release for more details.

6 June, 2013

Innofactor signed a contract to acquire the entire share capital of atBusiness Ltd.
See Stock Exchange Release for more details.

30 November, 2012

Innofactor signed a contract to acquire the Microsoft project and project portfolio management solutions business from Tietotalo Infocenter Ltd.

25 June, 2012

Innofactor signed a contract to acquire the entire share capital of Bridgeconsulting A/S.
See Stock Exchange Release for more details.

3 December, 2010

Westend ICT Plc and Innofactor Ltd merged to become the Innofactor Plc Group.
See Stock Exchange Release for more details.

3 June, 2010

Visual Management Ltd became part of Innofactor Software Ltd.

12 October, 2009

Innofactor Software Ltd acquired Software Innovation Finland Ltd.

1 April, 2007

Innofactor purchased the Enfo Ltd business unit responsible for electronic business solutions.

15 December, 2004

Innofactor Software Ltd acquired TietoEnator Plc's parish-software business.


The key operating principles governing sustainability at Innofactor are documented in the company's Code of Conduct and environmental policy. The Code of Conduct is based on legal requirements and the underlying international standards, such as the ILO Declaration on Fundamental Principles and Rights at Work, the UN Universal Declaration of Human Rights, the UN Sustainable Development Goals and the ICC Business Charter for Sustainable Development.

Innofactor's internal operations are managed through various processes and standards. The key processes related to sustainability include the company's processes pertaining to legal affairs, risk management and employees, which govern many of the key aspects of corporate responsibility. The framework for Innofactor's operations is provided by the ISO 9001, ISO 27001, ISO 13485 and AQAP-2110 standards, which the company's various processes adhere to.

Innofactor is committed to supporting the achievement of the UN Sustainable Development Goals (SDGs) by 2030. Accordingly, we have mapped the main objectives from the perspective of our business operations.

Good Health and Well-Being

We invest in the digital transformation of social services and healthcare, which has a broad impact on society. We are part of the national Virtual Hospital project, coordinated by the Joint Authority for the Hospital District of Helsinki and Uusimaa (HUS), under which we have played an important role in the implementation of HUS' unique Health Village concept. The online service gives citizens access to reliable information on health, self-care and getting treatment for medical conditions, regardless of the time and the user's location.

We also look after the well-being of our employees by providing comprehensive occupational health services and emphasizing workplace ergonomics at our offices.

Quality Education

At Innofactor, we develop digital services that support inclusive education and promote lifelong learning. With Innofactor Skilli, we have contributed to the personalization of students' learning in schools across Finland. Our application helps learners reflect on and evaluate their learning and provides teachers with valuable information on the students' learning. For example, with Skilli, teachers can get information on which learning methods are the most effective for improving the learners' skills and how the students have felt about the different learning sessions.

We develop the learning and development of our employees through Innofactor Academy, which we launched in 2017. Innofactor Academy arranges training for our employees on various topics. Innofactor Academy is being continuously developed in accordance with the employees' suggestions.

Gender Equality

We offer equal opportunities to all of our employees, regardless of gender and regard Innofactor's workplace diversity as one of our most valuable assets. Women currently represent 28 percent of our personnel. To further promote the employment of women in the ICT sector, we joined Women in Tech in 2017. The network aims to inspire more women to enter the technology industry and stimulate discussion on choices related to studying and career choices.

Decent Work and Economic Growth

We contribute to economic growth through innovation and new technologies. The measures we have taken to employ young people also help support this goal.

Environmental Responsibility

Innofactor's environmental impacts are guided by our environmental policy, which was revised in 2017. The long-term goal of the policy is to continuously improve our environmental impacts and proactively respond to the changing expectations and requirements of society.

We carried out an energy survey for major companies, as required by the Energy Efficiency Act, in 2015. Based on the survey, we have implemented measures to improve energy efficiency in our organization and regularly monitor our energy consumption. We are preparing for another energy survey in 2019 and strive to actively identify further energy saving opportunities within our organization.

Public transport access to Innofactor's head office at the Espoo Campus was substantially improved when the west metro began operating in the end of 2017. In addition to the Espoo Campus, Innofactor's other offices are also easily accessible by public transport. We encourage our employees to commute by bicycle and use virtual meetings instead of travelling, whenever possible.

For several years, we have recycled waste and reduced our paper consumption at our offices, reflecting our commitment to environmental values. Innofactor's remote work policy motivates our employees to take advantage of flexible working arrangements and reduces our total carbon footprint.

Social Responsibility

In 2017, Innofactor systematically recruited young talents and participated inseveral employment-oriented training programs, such as the Microsoft Azure Academy and Microsoft Dynamics 365 Academy.

We participated in the Microsoft Azure Academy and Dynamics 365 Academy again as a Microsoft partner company. The main objective of the six-month Academy is to find employment for the participants in a Microsoft partner company at the end of the program. The Dynamics 365 Academy includes participation in practical projects, a Boot Camp training period, practical exercises and two Microsoft certification tests. Our aim is to help the participants accumulate valuable work experience and develop them into experts in their field. In 2017, we recruited a total of seven employees through the Microsoft Academy programs.

Youth unemployment is one of the most significant challenges in the Nordic countries today. We are committed to promoting the employment of young people through our Young Talent Recruitment program. We employed 14 young talents through the program. Young people coming in through the recruitment program are placed in various types of positions at Innofactor.

In May, we organized our annual InSpirit employee event and invited our employees from all the Nordic countries to participate. The event featured Nordic networking, presentations of our different country organizations and the sharing of knowledge and expertise related to our customers and products.

Innofactor monitors employee well-being by conducting an annual employee satisfaction survey. The results of the survey are processed at the team level and by the Group's various management teams. Based on the results, we identify development areas that we can improve to further increase employee satisfaction among our personnel. We support the recreational activities of our employees in various ways, including the Innofactor Fun Club, which covers many different activities ranging from culture to sports.

Respecting Human Rights, Anti-Corruption and Anti-Bribery

Innofactor launched its Code of Conduct in summer 2017. The Code of Conduct is an important risk management tool that defines the general principles and guidelines that the company's employees and partners must adhere to. The Code of Conduct was approved by Innofactor's Board of Directors, it has been covered in various training events, and it is binding on all of the Group's business areas.

At Innofactor, we are committed to conducting our business transparently and in accordance with the highest ethical standards. We encourage our employees and other stakeholders to report suspected infringements against the Code of Conduct through our anonymous whistleblowing channel. All information collected via the whistleblowing channel is processed in strict confidence. 

Code of Conduct


Innofactor Plc together with all its affiliates ("Innofactor") commits to be a reliable employer and business partner and thus requires all members of the organization to adhere to the standards set by this Code of Conduct. In addition to the Code of Conduct, Innofactor follows applicable laws, certain international standards and its binding obligations. Innofactor also requires that all its suppliers, subcontractors and partners commit to similar level of compliance.

Innofactor has an appropriate management system in place to enable adherence to this Code of Conduct.

Innofactor reserves the right to change and update this Code of Conduct.

Conflict of interest

All employees, directors (jointly hereinafter "Employees") and Board Members must recognize possible sources of conflicts of interest and take appropriate actions to avoid such conflicts and situations that may be deemed as conflicting by third parties. Any potential conflict of interest shall be properly disclosed by the person subject to it as soon as it arises.

Anti-corruption and anti-trust

Innofactor condemns all forms of corruption, including bribery and unlawful restriction of fair competition. Transparency and fairness in business practices are key, especially when co-operating with government officials. Conformity with anti-trust laws is enforced.

Employees shall withhold from conducting any acts affecting competition that would be deemed to be unethical.

Insider information

Abuse of insider information is forbidden. We take our utmost to follow the EU Market Abuse Regulation and national insider guidelines and emphasize in all occasions that insider information must be kept strictly confidential and may not be disclosed to any non-insider within or outside Innofactor, including family members.

Innofactor Whistleblowing scheme exists to ensure that violations are caught and made notifications may be dealt with confidentiality.

Confidentiality and data processing

Confidentiality and lawful processing of personal data must be respected. Confidential information shall be handled with care and vigilance, especially information regarding Innofactor's customers and business partners. Access to all confidential information must be limited.

All Employees are required to participate in information security trainings.


An accepting and welcoming work environment is essential for the well-being of our Employees. Innofactor offers each Employee equal opportunity to succeed and advance in their career regardless of gender, nationality, religion, race, age, disability, sexual orientation, political opinion, union membership, or social or ethnic origin. Employees are expected to act according to non-discrimination policies both within and outside the workplace.

Innofactor has a zero-tolerance policy regarding harassment and abuse. Employees are encouraged to report any disruptive behavior should they become aware of it.

Fair labor and wages

Innofactor acts in accordance to treaties composed by the International Labor Organization and does not utilize child labor nor forced labor. We respect our Employees' right of association.

All Employees shall be paid a fair wage in accordance to the law and applicable collective bargaining agreements.

Health and safety, training

The health and safety of our Employees is a priority. We provide our Employees with safe working conditions and sufficient training to conduct their work with minimal hazard. Employee health is supported through promoting healthy living habits and offering occupational health care. We value lifelong learning and education and encourage our Employees' active participation to various courses and training programs.


Innofactor abides by the principles of sustainable development. Our environmental policy ensures that important environmental factors are considered in our daily functions, projects and further development.


Innofactor does not condone diversions from the Code of Conduct. Employees who fail to abide by the Code of Conduct shall be held accountable. Avenues for reporting violations are upheld.

Future Outlook

Innofactor's future outlook for 2018

Innofactor's net sales and operating margin (EBITDA) in 2018 is estimated to increase from 2017, during which the net sales were EUR 65.7* million and operating margin was EUR 1.3* million. Innofactor monitors the result development actively.

*) The net sales and operating margin for 2017 have been adjusted in accordance with the IFRS 15 standard. A separate release on this was published on May 7, 2018.

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