Visma Dataløn & Proløn A/S

Strategic key efforts in 2023
In 2023, our main focus was also “Growth.” Our key strategic efforts were:
Grow customer acquisition significantly
Be preferred partner choice
Eliminate technical debt by replacing our old Payroll Engine
Development in activities and finances in 2023
In 2023, Visma DataLøn og Proløn realised revenue of 404 MDKK compared to 393 MDKK in 2022. The increase, 2.9% compared to last year, is slightly less than expected.

Result before net financials stands at 139 MDKK (2022: 143 MDKK) equal to a profit margin of 34.4% which is approx. 2% points less than last year. The lower profit margin is in line with expectations and mainly due to expensed development costs in connection with own development of a new payroll engine and costs related to the new invoicing system.

Net financials for 2023 amounted to a net income of 5.5 MDKK (2022: net expense of 1.1 MDKK).

The variance can be explained by generally increasing interest rates on bank deposits. Profit of the year was 112.1 MDKK (2022: 109.9 MDKK.) The profit of the year is considered satisfactory under the given financial conditions and is in line with the expectations for the year.

Personal data, including EU General Data Protection Regulation (GDPR)
Visma DataLøn og ProLøn is compliant with applicable privacy legislation.
In 2023, we continued the work to meet the legislation around GDPR. Our business processes ensure the handling of our customer's data with the greatest focus on safety and security.
In addition to continuously strengthening internal processes and technologically securing ourselves against errors and external incidents, we focus on increasing awareness of processing personal data correctly and maintaining security for both new and existing colleagues. New colleagues are introduced to our security requirements, and everyone regularly participates in internal Visma e-learning programs and tests. We tailor our awareness program to be more relevant to different departments and focus on different topics during the year, including handling of privacy incidents, classification of data and deletion.

Our efforts are handled by our Data Protection Manager, Security Manager, and Workplace Experience Manager and are a regularly recurring theme at our monthly Information Security Board meetings.

Visma DataLøn is ISAE 3000 compliant.

We continually review and update our policies, including privacy risks, and our compliance process covers both product lines. In addition, we harmonise all future agreements with suppliers and business partners and carry out audits of all our suppliers.

During 2023, we have conducted several customer seminars on the processing of personal data and thus contributed to our customers being compliant.

Correct handling of personal data is still a major focus area for our customers, and we help them understand the many rules in the area so that they can handle them in their everyday lives - both internally and with their business partners and suppliers.
Special risks
IT security and business continuity
We are a software company, and as our core services to customers are based on information technology, IT security, process security and business continuity are essential. This applies to both applications and production processes where quality assurance is the focal point. In Visma DataLøn and ProLøn, we require a high level of security in our processes and with subcontractors.

Security is continuously tested and verified through audit reports, and audits are carried out by companies specialised in IT security.

Further, during October we mark ECSM, where we share information targeting special focus areas (phishing, fraud, etc) and conduct quizzes.

We obtained an audit statement without corrections and with high praise from the lead auditor.

Market conditions and fluctuations
We are deeply dependent on market conditions, as the demand for our products and services is sensitive to economic developments, as the sale of payroll administration products is affected by the employment situation and the business climate in general. We try to minimise the risks of large fluctuations by having a portfolio of products and support services.

2023 has been characterised by very high inflation and consequent bankruptcies. Regarding bankruptcies 2023 ended overall at the highest level since 2010 and led to the loss of 14,800 full-time jobs, which was the highest number since 2011.

Economic uncertainty, war and inflation have had an impact on our result in 2023. The industries where we have a large part of our customer portfolio (the construction industry and the entertainment industry) have been hit hard, and we have felt it. The two industry groups construction and trade together accounted for 45% of bankruptcies in active companies in 2023 on the Danish market, business services accounted for 16% and hotels etc. for 11%.

Our customers have also struggled to get and retain qualified labour, and in some parts of the country it has been very difficult to hire seasonal workers, which has affected both their business and ours, as a decrease in number of employees means a decrease in the number of payslips that we produce - just as bankruptcies mean that we lose customers and thus income.

In 2023, we have been very successful (as a consequence of Covid-19) in offering our customers to participate in online seminars as an alternative to physical seminars. The pandemic taught our customers to get used to managing more things online, just as the focus on costs and sustainable solutions is increasing.

Financial risks
Visma DataLøn og ProLøn's business activity does not imply currency risk except for minor exposures
in NOK, SEK and EUR related to intercompany trade and 3rd party suppliers. The Company manages interest rate risks mainly by the Visma Cash pool agreement. The company has no net interest bearing debt. Steps are taken to reduce credit risks from customers by having standard processes in place for collecting debts and rating major customers.