Innofactor Oyj - Company Announcement

Innofactor Renews its Vision and Long-term Financial Goals

Innofactor Plc Stock Exchange Release October 10, 2016, at 8:35 Finnish time



Innofactor's vision has been to be the number one Microsoft-based solution
provider in the Nordics. To realize this vision, Innofactor has made several
strategic business arrangements and acquired great amounts of external
financing for these. Due to the Lumagate acquisition announced today,
Innofactor will expand into Norway and will strengthen its position
significantly in Sweden and Denmark.  Innofactor considers that after this, it
has reached the position of the number one Microsoft-based solution provider in
the Nordics, as was its vision. 

During the years 2017 to 2020, Innofactor will primarily strive to unify its
offering in the Nordic Countries in defined fields. This may happen either
through organic growth or selective acquisitions. The relative share of
acquisitions in relation to Innofactor's net sales will likely decrease in the
future and acquisitions will require a smaller part of the company's revenue.
Realizing acquisitions and integration will require smaller amounts of group
level resources than before. 

Innofactor is renewing its vision and will now strive to be the leading
provider of cloud solutions and digital transformation in each of the Nordic
Countries (Finland, Sweden, Denmark and Norway). Innofactor's strategies to
realize this vision consist of best Nordic professionals in the Microsoft
ecosystem, leading offering in cloud solutions and digital transformation, 
proactive, value-adding and flexible delivery model, and top Nordic customers
in defined industries. 

Innofactor also renews its long-term financial goals. The new goals are:

•         To achieve annual organic growth of about 20 percent by 2020

•         To achieve about 20 percent EBITDA in relation to the net sales by
2020 

•         To keep the cash flow positive and secure solid financial standing in
all situations 

In 2016, Innofactor has started actions related to achieving its vision, the
organic growth and profitability in accordance with its new goals. To achieve
the goals, Innofactor will unify and productize its offering in the Nordic
level. The goal is to increase the share of products and services from the net
sales, which is believed to increase both organic growth and profitability.
Delivery models will be unified throughout the organization in order to
increase customer satisfaction, effectiveness and profitability. The common
Nordic ERP system will be implemented in its main parts during 2016. Also the
competitiveness pact agreed on in Finland in 2016 will have a positive impact
on Innofactor's growth and profitability. 

In the previous growth strategy, which relied heavily on acquisitions,
Innofactor used the company's earnings to finance acquisitions and, thus, did
not pay any dividend. Innofactor has defined a dividend distribution policy
according to which the company's aim is to distribute, from the part of the
operating margin (EBITDA) that exceeds 10%, the maximum dividend allowed by the
state of the business. In accordance with the above-described goals and
dividend distribution policy, Innofactor's goal is to pay dividend to the
shareholders in 2020 at the latest. 



Espoo, October 10, 2016

INNOFACTOR PLC

Board of Directors


Additional information:

Sami Ensio, CEO
Innofactor Plc
Tel: +358 50 584 2029



Briefings about the acquisition

On October 10, 2016, at 10:00 Finnish time, Innofactor will hold a briefing
concerning the acquisition for investors, analysts and media in Finnish at
Pörssiklubi, address: Fabianinkatu 14, 4th floor, 00100 Helsinki. 

In the briefing, the acquisition and its effects will be presented by
Innofactor's founder and CEO Sami Ensio, Chairman of the Board Ari Rahkonen,
CFO Patrik Pehrsson, and the director responsible for acquisitions Paavo
Pakkanen. The presentations of the briefing will be available on Innofactor's
web site after the briefing. The briefing is open to everyone. 

Innofactor will also hold a conference call in English for investors, analysts
and media on Monday, October 10, 2016, at 16:00 Finnish time. Registrations to
ir@innofactor.com before Monday, October 10, 2016, 14:00 Finnish time. 


Distribution:

NASDAQ OMX Helsinki
Main media
www.innofactor.com



Innofactor
Innofactor is the leading Nordic provider of cloud solutions and digital
transformation. Innofactor has Microsoft Ecosystem’s leading expertise and the
most comprehensive offering in the Nordics. Innofactor has over 600 eager and
motivated top professionals in Finland, Sweden, Denmark and Norway. Innofactor
serves over 1,500 commercial, public, and third sector organizations. In 2011
to 2015, the annual growth of Innofactor’s net sales has been approximately
35%. The Innofactor Plc share is listed in the technology section of the main
list of NASDAQ Helsinki Oy. www.innofactor.com 

(In the information above, the Lumagate acquisition has been taken into
account.)