Report of the Board of Directors 2020

iLOQ, is a Finnish rapidly expanding and internationalizing technology company that transforms mechanical locking into digital access management.

iLOQ’s technological solutions enable electronic locking without batteries or cables. The Company’s products are sold through iLOQ’s distribution channel providing professional installation and maintenance services. The Company has more than 1,000 resellers globally. Revenue increased steadily during the financial period 2020 in both the oval and DIN lock cylinder markets. The manufacturing of the products is based on outsourced, flexibly scalable production, distributed by the iLOQ-managed distribution centre. In addition, the company has a small-scale production unit to support product development needs.

In accordance with its growth strategy, iLOQ continued in 2020 to strengthen its organization to support the Company’s long-term internationalization and growth targets. The most significant investments were focused particularly on strengthening the company’s international sales and marketing as well as product development. In accordance with its growth strategy, iLOQ continued in 2020 to strengthen its organization to support the Company’s long-term internationalization and growth targets. iLOQ started business operations in Canada at the end of 2020. The company has subsidiaries in Sweden, Norway, Denmark, Germany, the Netherlands, France, Spain, UK and Canada.

iLOQ launched iLOQ S5 in the Nordic countries in fall 2019 and in Central Europe in spring. With the publication of iLOQ S5, the company utilizes even further the opportunities offered by digitalization and the Internet of Things in improving safety, decreasing administration and reducing lifecycle costs.

In May 2018, iLOQ released the world’s first mobile access management solution utilizing NFC technology, iLOQ S50, which is aimed at electricity production and distribution companies, telephone network services, server centres, water treatment plants, property maintenance services and transport services. The successful launch of the iLOQ S50 access system showed that we do not only rely on one product and technology. And when Apple finally opened its NFC (near field communications) function to third party manufacturers in its new iOS 13 operating system, the opportunities for further development in user access management that is not dependent on hardware is now in practice limitless.

iLOQ also made strong investments in improving the transaction experience of its reseller network and end customers by introducing the iLOQ partner portal and by enhancing the effectiveness of expert support processes and tools. In addition to expanding its reseller network, the company established significant cooperation with Cellnex Telecom during the financial year. iLOQ also started cooperation with the ski resort Levi and Vaasa Hospital’s H new construction project and continued its cooperation with Sato, Hoas and the student housing foundation in Vaasa. In addition, in order to increase the brand and awareness of iLOQ, a number of measures have been implemented and started aiming at achieving good visibility among the main target groups in key market areas in Central and Northern Europe.


iLOQ again made a strong positive result, despite strong growth and significant investments in internationalization. iLOQ Oy’s net sales in 2020 came to EUR 74.1 million (2019: EUR 61.1 million) and it increased 21.3% compared to the corresponding period of the previous year. The net sales of Central Europe operations increased by 42.5% from the previous year to EUR 14.9 (10.5) million. The turnover of Northern Europe’s operations was EUR 59.2 (50.6) million, which was 17.0% higher than in the previous year. In Northern Europe, growth was the strongest in terms of euros in Sweden.

The profitability of iLOQ Oy developed positively with all key indicators during the financial year 2020. Strong growth strengthened gross margin, which increased 22.4% from the previous year and was 56.3% of turnover (55.9%).  In 2020, EBITDA was EUR 13.3 million (2019: EUR 9.3 million). The costs for 2019 included one-off costs related to the work related to the company’s strategic options survey of approximately EUR 0.1 million. At the end of the year, the number of ILOQ Oy personnel was 115 (98) people, which increased by 17% from the end of the previous year. Operating profit (EBIT) was EUR 10.8 (7.3) million, or 14.5% (12.0%) of turnover. The profit of the ILOQ Oy for the financial year 2020 was EUR 6.4 (5.7) million.



Financial Indicators 2020 2019
Revenue (1000 €) 74,103 61,074
Gross margin (1000 €) 41,742 34,114
Gross margin, % 56.3% 55.9%
EBITDA (1000 €) 13,263 9,346
EBITDA, % 17.9% 15.3 %
Operating profit (1000 €) 10,780 7,301
Operating profit, % 14.5% 12.0%
Return on equity, % (ROE) 35.1% 27.9%
Equity ratio, % 65.6% 65.7%
Other indicators
Salaries and wages (1000 €) 7,243 6,213
Pension costs (1000 €) 1,172 1,052
Other personnel expenses (1000 €) 204 105
Total (1000 €) 8,618 7,370
Average number of personnel 107 91
Personnel at the end of the financial year 115 98


iLOQ has invested in the development of new products and the further development of the features and manufacturing processes of existing products. The most important development projects have been the development of the mechanics, electronics and software of the iLOQ S50 locking system introduced to the market in the last financial year and the iLOQ S5 access control system launched in the Nordic countries in the fall.

Investments in tangible and intangible assets totalled EUR 4.9 million in 2020 (EUR 4.7 million in 2019).


The Company’s liquidity and financial position were at a good level at the end of the financial period 2020. iLOQ Oy’s balance sheet total at the end of the financial period was EUR 43.561 million and equity ratio 65.6%.


On 15 May 2020, the Annual General Meeting decided to cancel the special rights and authorizations decided by the Annual General Meetings on 20 December 2018 and 21 March 2019. At the end of the financial year, the company does not have any valid special rights or authorizations. Hailuoto Development Oy merged with iLOQ Oy on 1 November 2020. As a result of the merger, the 56,218 shares of iLOQ Oy that were acquired by iLOQ Oy were cancelled together with the 5,300 shares already owned by the company in accordance with the Finnish Limited Liability Companies Act 15:12.


The Company does not have related party loans at the end of the financial period.


The Company’s management predicts that the revenue will grow in the current market areas also in 2021, thanks to development measures that accelerate growth.  It is predicted that profitability will remain good despite growth investments.


In January 2021, iLOQ announced its expansion to the UK. Ulf Jonasson, who has extensive experience in managing international business and also in the field of locking, has been appointed UK Country Manager of iLOQ UK Ltd. Ulf, working outside London, is responsible for establishing local commercial operations and developing strong partners and customer base.


iLOQ Oy operates with a network business model in the manufacture and distribution of products. The aim is to prevent business risks by identifying risks. In 2020, particular focus has been placed on ensuring the availability of components so that the company’s capacity to honour supply contracts can be secured.

Due to the nature of the company’s security products, product-related risks are prevented through thorough product testing, both internally and by external testing institutions, as well as high-quality operations at all stages of product development and manufacturing.

The above-mentioned and other business risks are also covered by insurance policies, in addition to the development of operational processes. The Board of Directors is not aware of any judicial or credit loss risks that would substantially affect the company’s performance.

At the beginning of 2020, the Board of Directors of iLOQ has assessed the impact of the outbreak of the rapidly expanded virus epidemic on the company’s market environment and business operations. So far, the virus epidemic has not had a significant impact on the company, among other things because measures to mitigate the potential supply chain disturbances caused by Covid-19 continued successfully.  The company’s Board of Directors and management closely monitor the development of the coronavirus situation and update their assessment of the effects of the epidemic as the situation progresses. ILOQ Oy has, due to Covid-19, a remote work recommendation in force, and during the financial year, for example, the company moved to two shifts in logistics functions, if necessary due to the health safety of employees.


iLOQ Oy has a certified ISO 9001:2015 quality system and ISO 14001:2015 environmental management system. The Company’s iLOQ S10/S50 SaaS service is produced by Fujitsu Services Oy, whose information security management system has been certified in accordance with ISO 27001:2013.


The company’s share capital is divided as follows:

2020 2019
K share 1,179,726 1,241,244
A share 0 0

All shares have the same right to dividend and company assets. All shares have equal rights to dividends and company assets.


The company does not hold any own shares.


iLOQ Oy’s unrestricted equity was EUR 26,728,708.93 on 31 December 2020. iLOQ Oy’s distributable equity was EUR 18,894,944.34 of which profit for the period amounted to EUR 6,368,361.09. The company’s distributable assets are divided into an invested unrestricted equity fund of EUR 6,302,894.00 and earnings of EUR 12,592,050.34.

The Board of Directors proposes to the Annual General Meeting that the profit for the financial year 2020 is transferred to the profit and loss account and that no dividends are paid out.

Since the end of the financial period, there have been no material changes in the company’s financial position. The company’s liquidity is good.


The Company’s auditor has been auditing firm KPMG Oy Ab, Authorized Public Accountants, with Tapio Raappana, APA, as the principal auditor.