SNP SE Increases Revenue Thanks to Strong Growth in Software Business

SNP | Corporate News

SNP SE Increases Revenue Thanks to Strong Growth in Software AG Business

- Group revenue increases by 7% to € 106.3 million in the first nine months of 2020

- Growth in Software AG business segment particularly strong, up 15.2% to € 35.5 million

- International partner network significantly expanded

- Order backlog of € 100.3 million as of September 30, 2020 (+10% compared with the previous year)

- Revenue and earnings forecast for 2020 confirmed

Heidelberg, Germany, October 30, 2020 - SNP SE (SDAX, ISIN: DE0007203705), a global leader in software for digital transformation processes, today published its quarterly report for the first nine months of the year. Group revenue increased by 7% to € 106.3 million (9M 2019: € 99.3 million). This was essentially attributable to the growth of the high-margin Software AG business segment, which increased by a particularly strong 15.2% and amounted to approximately 33% of Group revenue (previous year: 31%). Revenue in the Service business segment increased by around 3% to € 70.8 million in the reporting period (9M 2019: € 68.5 million). Accordingly, the gross income margin came to 87.9%, a considerable improvement over the previous year (9M 2019: 86.7%).

Operating earnings (EBITDA) fell slightly year-over-year to € 6.1 million (9M 2019: € 7.0 million). This is mainly due to the increase in personnel expenses from € 61.1 million to € 71.0 million: Due to the growing demand for software solutions, SNP began investing last year - particularly in software development, but also in the expansion of sales. However, growth slowed with the outbreak of the coronavirus pandemic, which meant that the increased personnel costs could not be completely offset by higher revenue. Earnings before interest and taxes (EBIT) thus reached a value of € 0.1 million after nine months (9M 2019: € 1.2 million). Earnings before taxes amounted to € -1.0 million after reaching € 0.4 million in the previous year.

"Our nine-month figures show that we are on track toward achieving our yearly targets. Demand for our software and services is continuously increasing and we were able to further expand our international partner network," says Dr. Andreas Schneider-Neureither, CEO of SNP SE. "Likewise, we expect to see good development in the fourth quarter with a growing project pipeline."

Order entry as of September 30, 2020 totaled € 141.8 million, approximately 4% lower than the comparable figure for the previous year (previous year: € 148.7 million). However, this value was positively influenced in the previous year by a multi-year order of € 26.5 million. The order backlog amounted to € 100.3 million as of September 30, 2020, compared to € 91.3 million as of September 30, 2019. This represents an increase of approximately 10%.

Thanks to successful working capital management, operating cash flow amounted to € 0.9 million after nine months despite a rising revenue level. This followed a cash outflow of € 9.2 million in the previous year.

SNP SE confirms the outlook for the 2020 fiscal year that was published on April 29, 2020. Management continues to expect Group revenue between € 145 million and € 170 million as well as an EBIT margin in the mid-single-digit percentage range for 2020 as a whole.

The report for the first nine months of 2020, published today, can be downloaded from the SNP website at http://www.snpgroup.com/en/financial-publications

About SNP

SNP is one of the world's leading providers of software for the management of complex digital transformation processes. Unlike traditional IT consulting in an ERP environment, SNP employs an automated approach that uses proprietary software. With the data transformation platform CrystalBridge^(R) and the SNP BLUEFIELD^(TM) approach, IT landscapes can be restructured and modernized much faster and more securely, and data can be securely migrated to new systems or cloud environments. This provides customers and partners with clear qualitative benefits while also reducing their investment of time and expense.

The SNP Group has around 1,500 employees worldwide. Headquartered in Heidelberg, the company generated Group revenue of approximately € 145 million in the 2019 fiscal year. SNP's customers are global corporations from all industries. SNP was founded in 1994, has been publicly traded since 2000 and listed on the Prime Standard segment of the Frankfurt Stock Exchange (ISIN DE0007203705) since August 2014, and was admitted to the SDAX^(R) in March 2020. Since 2017, the company has operated as a European stock corporation (Societas Europaea/SE).

Further information is available at www.snpgroup.com

Investor Relations Contact:

Christoph Marx
Head of Investor Relations
Tel: +49 6221 6425-172

Marcel Wiskow
Director of Investor Relations
Tel: +49 6221 6425-637