SNP Schneider Neureither & Partner : Reports Strong Revenue Growth and Significant Earnings Increase in the Third Quarter

DGAP-News: SNP Schneider-Neureither & Partner SE / Key word(s): Quarter Results SNP Reports Strong Revenue Growth and Significant Earnings Increase in the Third Quarter 31.10.2019 / 08:00 The issuer is solely responsible for the content of this announcement. SNP | Corporate News SNP Reports Strong Revenue Growth and Significant Earnings Increase in the Third Quarter - Software and cloud revenue significantly higher than in the previous year - Revenue increases to EUR 40.4 million in Q3 2019 (+19.8%) - EBIT in Q3 2019 reaches EUR 7.1 million (+147.7%); EBIT margin of 17.7% (previous year: 8.6%) - Significant increase in order entry and order backlog, among other things, due to the gain of additional core customers - Management confirms revenue and earnings forecast for the year as a whole Heidelberg, October 31, 2019 - SNP Schneider-Neureither & Partner SE can look back on a very successful third quarter of 2019: Group revenue increased by 19.8% on the previous year to EUR 40.4 million; the past quarter is thus the second strongest in the company's history. In the same period, operating earnings (EBIT) picked up by a strong 147.7% from EUR 2.9 million to EUR 7.1 million. The EBIT margin rose from 8.6% to 17.7%. The revenue and earnings trend is primarily attributable to a significant rise in customer demand for SNP products in the SAP S/4HANA environment. The share of high-margin software and cloud business increased to 39.7% in the third quarter of 2019 (Q3 2018: 22.9%). With net income in the third quarter of 2019 of EUR 5.1 million, the previous year's figure was likewise clearly exceeded (Q3 2018: EUR 1.9 million). "SNP is on a solid and strategically promising path. Our performance in the third quarter has confirmed our expectations. The very good order situation is having a positive impact on revenue and earnings growth in the second half of 2019. We remain confident for the future," says Dr. Andreas Schneider-Neureither, CEO of SNP SE. "The increased demand for SNP's own software products and our international customers' and partners' correspondingly increased confidence in our solutions is particularly significant." This positive business trend is also apparent over the first nine months of the year: Due to a weaker first half-year, the revenue of EUR 99.3 million is at roughly the same level as the previous year. However, the EBIT figure has picked up significantly to EUR 1.2 million (9M 2018: EUR -3.2 million) on account of strong software and cloud business. At EUR 0.3 million, net income in the first nine months of the current financial year is also higher than in the same period in the previous year (9M 2018: EUR -3.5 million). This positive environment is also reflected in the order entry trend: The company has gained a significant number of further orders and increased its order entry throughout the Group to EUR 148.7 million in the first nine months of the 2019 fiscal year. This represents growth of around 51% on the previous year. The third quarter of 2019 accounts for an order entry volume of EUR 63.7 million. Compared to the same quarter in the previous year, this represents an increase of about 102% (previous year: EUR 31.5 million). This significant increase is, among other things, attributable to a major order from a world-leading IT and consulting firm based in the USA for global use of SNP software. The firm committed to purchasing SNP software licenses for data transformation with a minimum value of USD 30 million until 2022. Furthermore, in September, a partnership was signed with Google Cloud; Google has licensed both the digital transformation platform CrystalBridge(R) and the SNP BLUEFIELD(TM) procedure. This suite will enable its SAP customers to implement rapid and secure data migration to their cloud system. On the basis of the extensive license agreement, Google's customers will be able to transfer their SAP applications to Google Cloud while making the changeover to S/4HANA at the same time. The order backlog amounted to EUR 91.3 million as of September 30, 2019, compared to EUR 61.4 million as of September 30, 2018 (approximately +49%). Unchanged Forecast for the Year The company confirms its forecast for the 2019 fiscal year and continues to expect Group revenue of between EUR 145 million and EUR 150 million as well as an operating earnings margin (EBIT margin) in the lower to mid single-digit percentage range. Due to the increased level of customer demand in the first nine months of the current fiscal year, Management expects the order entry figure for the year as a whole to exceed the originally envisaged range of between EUR 158 million and EUR 163 million. Key figures: in EUR million 9M 2019 9M 2018 Q3 2019 Q3 2018 Order entry 148.7 98.7 63.7 31.5 Order backlog 91.3 61.4 91.3 61.4 Revenue 99.3 98.8 40.4 33.7 EBITDA (non-IFRS, adjusted for exchange rate effects) 8.0 0.8 9.4 2.5 EBITDA (IFRS) 7.0 0.5 9.1 4.0 EBIT (non-IFRS, adjusted for exchange rate effects) 3.0 -1.7 7.8 1.9 EBIT (IFRS) 1.2 -3.2 7.1 2.9   Additional details can be found in the extensive Q3 interim report: https://www.snpgroup.com/en/financial-publications A teleconference will be held today (October 31, 2019) at 2:00 p.m. CET. The dial-in number may be found in the Investor Relations area of SNP's website: https://www.snpgroup.com/en/investor-relations About SNP With its own solutions, SNP SE supports organizations in adapting their business models and seizing the opportunities of digitalization. SNP software and services facilitate the implementation of business or technical modifications to business applications and enable its customers to implement these modifications automatically. The unique BluefieldTM approach and the leading SNP Business Transformation Platform have laid the foundations for an industry standard for automated business transformations. Changes in IT systems are automatically analyzed, implemented and tracked. This offers clear quality advantages and significantly reduces the time, costs and risks involved in complex transformation projects while adhering to the highest compliance and security standards. The SNP Group has around 1,300 employees worldwide. Headquartered in Heidelberg, the company generated revenue of approximately EUR 131 million in the 2018 fiscal year. SNP's customers are global corporations from all industries. SNP was founded in 1994 and has been publicly traded since 2000. As of August 2014, the company is listed on the Prime Standard segment of the Frankfurt Stock Exchange (ISIN DE0007203705). 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 Phone: [phone] Marcel Wiskow Phone: [phone] Email: [e-mail] https://www.snpgroup.com/en/investor-relations/ 31.10.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de

Language:	English
Company:	SNP Schneider-Neureither & Partner SE
	Dossenheimer Landstraße 100
	69121 Heidelberg
	Germany
Phone:	[phone], [phone]
Fax:	[phone]
E-mail:	[e-mail]
Internet:	www.snpgroup.com
ISIN:	DE0007203705
WKN:	720370
Listed:	Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime Standard), Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
EQS News ID:	901151

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901151  31.10.2019