How the war affected revenues of 10 global tech giants in Ukraine

The State Statistics Service published fresh financial statements of Ukrainian companies for 2022 recently. Thus, Mind decided to check how international tech giants are doing in Ukraine. From several Forbes global rankings, our outlet chose large companies with Ukrainian offices. Then, they were ranked based on their revenue in our country, based on data from Opendatabot and Youcontrol.

Good news: none of the companies that made our 2021 ranking left the Ukrainian market during the war. However, the revenues of many players have significantly shrunk, even compared to 2020. Only two companies from the previous ranking recorded revenue growth. And three – ended 2022 with a dramatic loss.

Cisco Systems and Oracle did not make the top 10, as there is no information about their revenues in open sources. Also, IBM Ukraine, Nokia Solutions and Networks Ukraine, Lenovo, LG, Dell, Hewlett Packard Enterprise, Canon, Flextronics, Xiaomi – whose financial indicators are somewhat more modest than the top ten – did not make the ranking.

Mind also asked the CEOs of Ukrainian offices to tell how the war affected their business in Ukraine, what makes the Ukrainian market still interesting for the companies, what growth points and challenges they see in 2023. So far, not all speakers have answered these questions.

Entered Ukraine: 2003

Authorised capital size: UAH 532,950

Office location: Kyiv

Head: Leonid Polupan

What does the Ukrainian office do? Promotion and support of the corporation's products – Microsoft Edge, Bing, Visual Studio 2022, Microsoft Cloud, Azure, Dynamics 365, Windows 365, and more. During the war, the team continued to support many government structures with critical infrastructure. It also maintained its partnership with Kyivstar mobile provider. These companies agreed in 2019 to jointly develop and promote convergent corporate solutions.

In Ukraine, the company sells its products through B2B and retail, but the main focus is on the corporate segment. "About 80% of the company's clients across all products are private businesses. In other countries, the share of the public sector is much larger... There is a stereotype that the Ukrainian office is just a marketing representative office. In fact, specialists from various hierarchies and directions, including developers, work in Kyiv," Mind was told in the Ukrainian office before the full-scale invasion.

At the moment, the press service explained in response to a request from the publication that the company is currently not providing comments, but the situation will change in the near future.

Revenue dynamics. According to OpenDataBot, Microsoft Ukraine is one of the two companies in the ranking, whose revenue has almost not declined compared to 2021. In 2022, it was approximately 300 million UAH.

Entered Ukraine: 1997

Authorised capital size: 105,367 UAH

Office location: Kyiv

Manager: Sergiy Tereshchuk

What does the Ukrainian office do? Supplying solutions and technologies for communication networks, technical support and servicing of mobile providers' networks. Approximately 65% of all voice traffic in Ukraine is serviced by Ericsson equipment. According to the Base Stations service, the company ranks 4th on the domestic market among vendors after Huawei, ZTE, and Nokia. Before the full-scale invasion, there were 11,473 Ericsson base stations in our country, all of them working in lifecell networks.

During the war, work was not interrupted, the office was not closed. "The first priority was to ensure the uninterrupted operation of the network and its operational restoration in cities of damage. Then we focused on increasing the capacity and resilience of the network: we relocated existing and deployed additional equipment, and provided backup nodes," Mind previously said in the Ukrainian office.

The company also helped operators deploy LTE in the promising frequency band – 2300 MHz. "This was necessary to expand the capacity of existing LTE networks in Western Ukraine. In the future, it will provide the opportunity for rapid deployment of 5G technology thanks to 100% reuse of the already deployed solution," explained Ericsson Ukraine.

Revenue dynamics. According to YouControl, in 2022, revenue decreased by 18% – to 330 million UAH. OpenDataBot data indicate that the company suffered almost 137 million UAH in losses.

Establishment in Ukraine: 1995

Statutory capital size: UAH 271,228

Authorised capital size: Kyiv

Manager: Hanna Mikulytska

What does the Ukrainian office do? SAP SE is one of the largest global providers of enterprise management software. The Ukrainian office works with certified partners and oversees sales, promotion, and support of its products: SAP S/4HANA, SAP Ariba, SAP SuccessFactors, SAP Customer Experience, etc. Before the war, there were about 250 state and private clients in the company  – enterprises from the oil and gas, energy, metallurgical and other sectors (Metinvest, DTEK, Naftogaz, Pharmacy, Darnitsa, Novus, MHP, etc.).

"We continue to work and process customer requests in Ukraine. For safety reasons, the Kyiv office is closed, but our employees are working remotely. Those colleagues who joined the Armed Forces comply with certain legal and operational rules as they cannot work during service. After the start of the full-scale invasion, some employees decided to move with their families outside of Ukraine and we supported them. However, many employees remained here," recalls Hanna Mikulytska, CEO of SAP Ukraine.

According to her, since the start of the full-scale war, the company has provided Ukrainian customers with free support for software and cloud services, amounting to over 30 million euros for 2022. Customers are exempt from payment and for the first half of 2023. The company will also provide the Ministry of Defense with about 1000 software licences for free.

"To ensure the successful completion of the most important procurement and ensure that goods can reach Ukraine uninterrupted, we have provided open access to SAP Ariba Discovery, which connects business buyers with qualified suppliers from around the world. Access is open and still available. On the pages of the SAP business network, a "Support Ukraine" button appeared, allowing suppliers to easily declare their readiness to help, and buyers can quickly find what they need. So far, over 10,000 suppliers have offered their support, and over 75% of requests for help have received a response," says Hanna Mikulytska.

The company became a resident of Diya.City. It collaborates with the Ministry of Digital Transformation and various organisations on the ground. For example, it provided cloud solutions to the public organisation Enkidu Global, which joined the State Enterprise "Medical Procurements of Ukraine" (DP MU) to ensure prompt purchase of medicines for Ukrainians. Enkidu used the company's solutions to create a centralised platform, thanks to which DP MU can quickly find suppliers for timely delivery of necessary goods.

"We are proud of Ukrainian companies that continue to digitally transform and develop despite all obstacles by improving their processes. For example, in H2 of 2022, Kormotech and Enzym started implementing the RISE with SAP proposal based on the SAP S/4HANA cloud ERP system. The Tabletochki Foundation decided to improve its processes using SAP Business One," says the company's CEO.

Revenue dynamics. According to Opendatabot, last year's revenue fell by 70% to UAH 345 million. The loss was almost UAH 109 million.

Growth points and challenges in 2023. "Ukraine is making great strides towards digital transformation in both the public and private sectors even now, during the war. We see that Ukrainian business is looking for effective ways to improve supply chains. Many of them were disrupted by the war, so now the business is interested in various ways to strengthen them. Thanks to SAP Ariba (helps digitise and diversify the procurement process) and SAP Business Network (provides access to suppliers in 190 countries worldwide), we can prevent disruptions in the supply chains. For example, 'Medical Procurements of Ukraine' continues its digital transformation by implementing SAP Ariba for centralised tenders and procurement," says Hanna Mikulytska.

Another growth point: the company has launched GROW with SAP worldwide – a cloud-based ERP product for medium-sized companies. The solution combines the public version of SAP S/4HANA Cloud with accelerated implementation services, a global expert community, and free training resources that help customers start working in four weeks. "GROW with SAP is currently being localised for the Ukrainian market. Localization of software solutions is important for the user in terms of reducing the cost of implementation and contributing to product development, as well as minimising risks," explains Hanna Mikulytska.

She adds that the quality of solution implementation is important for the company, so it is expanding its partnership ecosystem: "This is also an important direction of our development. SAP supports Ukraine, believes in its business and offers its latest solutions for its market."

Entry into Ukraine: 1992

Authorised capital size: UAH 54,912,790

Location of offices: head office in Kyiv, regional offices in Kharkiv, Odesa, Lviv, and Dnipro

Manager: Boriana Manolova

What does the Ukrainian office do? Before the war, the company supplied its products and services to many industries: energy, mining, metallurgy, agriculture, retail, transportation, building automation, urban infrastructure, etc. Among the clients were Ukrenergo, Metinvest, ArcelorMittal Kryvy Rig, Cargill, Kernell, Astarta, Farmak and others.

Not all customers have yet spoken out and are ready to invest in digital modernization of enterprises. So, the company promotes technologies that help the development of vertical agriculture, digitalization of power supply systems, etc. It launched Siemens Xcelerator – a business platform with a portfolio of equipment, software and digital services based on IoT. It also helps to restore damaged critical energy infrastructure: it freely transfers vacuum reclosers, high-voltage vacuum automatic switches, overload protection devices, microprocessor protection terminal devices, etc. The necessary equipment is also provided to water utilities.

Revenue dynamics. According to Opendatabot, last year's revenue fell by 67% – to UAH 631 million. The company also recorded a loss of UAH 120 million.

Entered Ukraine: 2003

Authorised capital size: UAH 1,254,420

Location of office: Kyiv

Manager: Sergiy Gontar

What does the Ukrainian office do? Supplying, promoting, and servicing household appliances and medical equipment. "Philips' activities in Ukraine mainly cover the health care sector. Many private and public clinics in the country are equipped with Philips medical equipment: angiography, ultrasound, MRI, CT, etc.", the Ukrainian office reported to Mind before the war.

After the full-scale invasion, the company launched several projects to support hospitals, maternity homes, and mobile medical teams. Philips Foundation created mobile hospitals equipped with patient monitors, electrocardiographs and portable diagnostic ultrasound devices, etc. It also transferred mobile ultrasound machines and X-ray installations to the Ministry of Health and charitable organisations.

Revenue dynamics. According to Opendatabot, the company's revenue last year decreased by 38% – to UAH 1.124 billion.

Entered Ukraine: 2000

Manager: Ma Zi

Authorised capital size: 1,262,500 UAH

Office locations: Kyiv, Lviv, Odesa, Kharkiv, Dnipro

What does the Ukrainian office do? There are several directions. The first is the supply, installation, commissioning, and maintenance of telecom equipment. According to Base Stations, this vendor leads in Ukraine (accounting for over 55% of the market). Huawei base stations are present in the networks of all mobile providers: Kyivstar, Vodafone Ukraine and lifecell.

The second direction is the supply and maintenance of IT equipment for the corporate sector. The third is the implementation of "smart" solutions for solar energy. The fourth is the promotion of user gadgets (smartphones, tablets, laptops, "smart" watches, etc.).

"In the context of the whole country, we are witnessing a massive redistribution of human resources. The relocation of Ukrainians abroad, the relocation of citizens within the country, and active hostilities have undoubtedly changed the environment for business. These changes were especially felt by providers when it was necessary to respond to new challenges and quickly adapt in a very limited time. We continued cooperation with all Ukrainian providers. We involved capabilities to fulfil obligations to our partners and clients. Not only did not our engineers, managers and colleagues from R&D stop working from February last year, but we continued to expand the team in the Kyiv office", says the CEO of Huawei Ukraine Ma Zi.

However, he clarifies: the company resumed the supply of telecom equipment to Ukraine at the beginning of March under conditions when the airspace and ports were closed. The team created new logistics routes within a week to ensure uninterrupted supplies to Ukrainian cities. It also carried out reconfiguration and adjustment of optimal parameters for radio network operation. During the past year, it strengthened corporate social responsibility projects: provided educational institutions with modern Wi-Fi equipment and offered additional scholarships to engineering students.

Revenue dynamics. According to Youcontrol, Huawei Ukraine is the second company in our ranking that managed to finish 2022 with almost no decline. Revenue decreased by 1.1% to 1.294 billion UAH. And, according to Opendatabot, profit amounted to 310 million UAH.

Growth points and challenges for 2023. "We plan to continue our business and further support Ukrainian partners and clients technologically and consultatively, despite the new realities. In 2022, Huawei became the leader of the European Patent Office ranking by the number of applications filed. We have extensive experience in implementing digital economy and green telecom equipment in more than 170 countries worldwide. Therefore, we want to continue to help Ukrainian businesses become more intellectual thanks to the implementation of such solutions", says Ma Zi.

And he adds: the goals for the coming year are to assist Ukrainian operators, ensure coverage stability and network architecture resilience.

"Particularly worth noting is the human resource. In the 23 years of working in Ukraine, we have repeatedly been convinced of the strong professional preparation of the Ukrainian technical school. We are convinced that the business, which continues to work here, attracting workers, especially in the field of high technologies, will have win-win results," concludes the director of Huawei Ukraine.

Entered Ukraine: 2005

Authorised capital size: 547,000 UAH

Office location: registered in Kyiv, employees have been working remotely for several years since the outbreak of the pandemic

Manager: Paul Terence Manicle

What does the Ukrainian office do? There are several directions. The key one is working with advertisers and promotional mechanisms (Google Ads, Google Analytics, Programmatic buying). The second direction is supporting the launch and promotion of corporate products: Google Classroom, Google Cloud, Google Shopping, Google Flights, Google Pay, YouTube Premium, YouTube Music, etc. Google also supports Global Cache in the Ukrainian market – a program for accelerating user access to content.

"The Internet has played an even bigger role in people's lives than before the war. During the full-scale invasion, this process accelerated even more. For many people, a smartphone with internet access has become the only means of communication and finding the necessary information. Throughout this time, we have been working to make our efforts provide meaningful support to people and businesses affected by the war. We intend to focus on this goal, regardless of what awaits us in the future," says Dmytro Sholomko, Director for Business Operations at Google in Eastern Europe.
According to him, during this time, the team has managed to launch many services and initiatives in Ukraine. For example, YouTube sponsorship for content creators, the Google Support Fund for startups in Ukraine, many initiatives related to distance learning, people's safety, fighting fakes, as well as a special section Ukraine Nearby on Google Arts & Culture. In addition, many initiatives have emerged within the company to help Ukraine and Ukrainians.

Revenue dynamics. According to Opendatabot, last year's revenue fell by 42% and reached 1.37 billion UAH. Compared to 2020, an even more significant decline: 72%.

Financial statement. Income, Net Profit, Assets, Liabilities

Growth points and challenges of 2023. Dmytro Sholomko believes that several trends are expected in the market this year. "Companies that sold something or provided services in Ukraine are trying to find a new audience beyond its borders, particularly through online advertising. Another trend is mobile traffic, which in 2020 already outweighed desktop traffic. Now it has become the main focus. People mostly use the internet via smartphones. And the share of smart TVs has increased significantly," explains the Director for Business Operations at Google in Eastern Europe. And he clarifies: Ukraine has always been an important market for Google and remains so.

Entered Ukraine: 2004

Authorised capital size: 1,347,999,964 UAH

Office and production location: Transcarpathia Oblast, Uzhgorod Rayon, Rozivka village

Manager: Mykhailo Duran

What does the Ukrainian office do? A full cycle of gadget production for other companies. Jabil Circuit Inc. is among the world’s top three contract manufacturers of electronics. Employees of the Ukrainian plant produce devices for the automotive industry, energy, healthcare, digital and household appliances, mobile communication devices, network and telecommunications equipment, etc. Among the clients are Nokia, Adtran, Nespresso, and others.

The company's production and warehouse areas cover 470,000 square feet. Total investments in the project since 2004 have reached $75 million. The factory's location was chosen to facilitate the export of products to Slovakia, Hungary, and Romania. After February 2022, this location provided protection for the enterprise from military risks.
Revenue dynamics. According to Opendatabot, Jabil Circuit Ukraine is one of the two companies in the ranking that managed to increase revenue during the war. In 2022, it grew by 13% to almost 1.7 billion UAH.

Entered Ukraine: 2020

Authorised capital size: 2,708,990 UAH

Office location: registered in Kyiv, employees work remotely.

Manager: Peter Ronald Denwood

What does the Ukrainian office do? It promotes its products (Mac, iPad, iPhone, Apple Watch, AirTag, AirPods, etc.), services (Apple TV, Apple Music, Apple Arcade, etc.) and the Apple One platform. However, the sale of gadgets and service support are currently provided by official partners, listed on the company's website.

The corporation began assembling a team in Ukraine immediately after registering a legal entity in 2020. In the summer of 2021, it opened an official office in Kyiv and launched a website in the Ukrainian language. The team planned to import equipment independently and control the stores of official dealers. However, after the start of the russian aggression, they had to slow down. Currently, the company has no vacancies in Ukraine.

Revenue dynamics. According to Youcontrol, Apple Ukraine became the leader in revenue growth in 2022. The volume of income increased by 41% to 9 billion UAH. Data from Opendatabot indicates a profit of 141 million UAH.

On the other hand, the corporation's global sales last year fell by 5% to $65.8 billion. One of the reasons for the decline, according to Apple CEO Tim Cook, was the war in Ukraine.

Entered Ukraine: 2008

Manager: Danny Dongwon Ryu

Authorised capital size: 327,743,798 UAH

Office location: Kyiv

What does the Ukrainian office do? It promotes the company's products: mobile gadgets, TV and audio, household and computer appliances. For businesses – providing and supporting technical solutions for various industries: retail, transport and logistics, education, medicine, etc. Samsung R&D Institute also operates in Ukraine, which is among the top 50 largest IT companies in Ukraine.

"Countless people and companies are going through very difficult times in Ukraine. We do not deny that we have also encountered many problems. However, despite all the challenges, the company remains with Ukrainians and makes every effort to provide users with technologies, products, and services. In particular, we provide high-quality services and support the operation of as many service centres as possible. Moreover, Samsung brand stores continue to work and develop," says Danny Ryu, President of Samsung Electronics Ukraine.

In his words, the team has established efficient supply chains, which has made it possible to resume the operation of their own official online store in Ukraine. "As a socially responsible company, we also continue to provide our support to Ukraine. For example, in 2022, we allocated $6 million to help the most vulnerable categories of the population," Danny Ryu specifies.

Revenue dynamics. According to Opendatabot, last year's revenue fell by 31% to 14 billion UAH.

Financial statement. Income, Net Profit, Assets, Liabilities

Growth points and challenges of 2023. "We have been working in the Ukrainian market for over two decades. Ukraine is an amazing country with incredible potential for further development. During this time, consumers have become convinced of the quality and reliability of our products and technologies. Therefore, we, of course, continue to supply our products to Ukraine. These are the latest generations of smartphones, household appliances, televisions, monitors, screens, and much more," says Danny Ryu.

However, he clarifies that the company is now developing the SmartThings ecosystem of connected devices, a smart home platform based on IoT. SmartThings is constantly gaining new features and is complemented by compatible devices to offer users intuitive methods for smarter automation and organisation of everyday life.

"We are not afraid of future difficulties because our responsibility to our customers, employees, partners, and local communities remains unchanged – it is to strengthen confidence and trust in our company. We believe that, despite everything, Ukraine will undoubtedly experience rapid recovery and prosperity," the president of Samsung Electronics Ukraine concludes.