CREALOGIX 2019/2020 Annual Results

Media Release

Zurich, 15 September 2020 - CREALOGIX Holding AG

CREALOGIX 2019/2020 Annual Results

CREALOGIX reports higher organic growth with increased sales, improved operational performance and strong free cash flow for the financial year 2019/2020. Recurring share of total revenues up to 44%, confirming strategic direction. One-off costs of CHF 7 million impact on net result.

Financial year highlights 2019/2020

The Group increased the overall net sales by 1.7% to CHF 103.7 million (3.9% increase in local currencies). Despite COVID-19, net sales were 13.2% higher in the second half of the year, compared to the first six months of the fiscal year. SaaS and Hosting revenues increased by 15%. The conversion from a one-time to a recurring revenue model temporarily reduced net sales and EBITDA by CHF 6.9 million for this reporting year.

The Group reports an operational result (adjusted EBITDA) of CHF 2.4 million, excluding one-off costs for reorganisation measures. This is an increase of CHF 0.5 million compared to 2018/2019.

The one-off costs as part of the reorganisation of CHF 7.0 million reduced the EBITDA to CHF -4.6 million. These one-time costs will be used to accelerate the transformation, especially the streamlining of the product portfolio. The Group reports an adjusted net loss of CHF -5.4 million, which includes a goodwill amortisation of CHF 4.9 million. The adjusted earnings per share improved to CHF -0.15 (2018/2019: CHF -0.94).

The cash position increased to CHF 36.0 million (2018/2019: CHF 12.8 million) with adjusted free cash flow in 2019/2020 of CHF 7.9 million (2018/2019: CHF -2.5 million). This is an increase of CHF 10.4 million year-over-year.

CREALOGIX has now accelerated the transformation and benefits from continued market demand for digital banking solutions. We are executing our strategy to become the leading SaaS provider for digital banking solutions, supported by the following priorities:

1. Targeting leading financial institutions with an accelerated global go-to-market approach. The sales and marketing force are segment and sales region oriented and have been doubled within six months. Additionally, we are expanding partnerships with global re-sellers and software implementation partners such as IBM.
2. Consolidating our broad product offering and shifting our focus to key strategic platform products, which are partner enabled and SaaS ready. In addition, we are bundling our development capacities and increasing our research & development budgets to reinforce innovation.
3. Converting previous one-time sales to recurring revenues. Based on the current progress (increase to a total 44% recurring revenues in 2019/2020) we have set a medium term goal of an overall 60% recurring revenue share.

"CREALOGIX is growing while we transform our business towards becoming the leading SaaS provider for digital banking platforms. Recent client wins such as Germany's Förderbanken (development banks) are underlining our strategy. We have shifted gears and will begin to further cash in on the positive effects of the transformation", says Oliver Weber, Chief Executive Officer at CREALOGIX.

Outlook

By accelerating our transformation towards a leading SaaS provider within digital banking, we are securing our position as fintech partner for banks on their digital journey. While our sales force strengthens across the globe, we will be able to better understand our clients' need, grasp new market possibilities and enter valuable international partnerships. While the full effect of the COVID-19 pandemic is difficult to predict, we are seeing clear signs of increased appetite to further digitize processes and improve existing online customer journeys. Our business model with a focused product platform, an improved scalability of our offering and a sustainable SaaS revenue model will help us achieve positive results and double-digit profitability on EBITDA level in the medium term. Projecting to next year's annual results, we expect positive results with our EBITDA margin that go beyond the adjusted EBITDA of 2019/2020.

The Board of Directors has decided not to propose dividends from capital reserves to the shareholders at the Annual General Meeting.

The full annual report for 2019/2020 is available for download at crealogix.com/report-en.

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About CREALOGIX

TheCREALOGIX Groupis a Swiss Fintech 100 company and is among the global market leaders in digital banking. CREALOGIX develops and implements innovative fintech solutions for the financial institutions of tomorrow. Using digital solutions from CREALOGIX, banks,wealth managers, and other financial institutions can better respondto evolving customer needs in the area of digital transformation, enabling them to hold their ground in a very demanding and dynamic market and remain ahead of their competitors. The group, founded in 1996, has more than 700 employees worldwide.The shares of CREALOGIX Group (CLXN) are traded on the SIX Swiss Exchange.

The economic projections and predictions contained in this information relate to future facts. Such projections and predictions are subject to risks, uncertainties and changes which cannot be foreseen and which are beyond the control of CREALOGIX Holding AG. CREALOGIX Holding AG is therefore not in a position to make any representations as to the accuracy of economic projections and predictions or their impact on the financial situation of CREALOGIX Holding AG or the market in the securities of CREALOGIX Holding AG.

This document does not constitute an offer or invitation to subscribe for or purchase any securities. It is not being issued in countries where the public dissemination of the information contained herein may be restricted or prohibited by law. In particular, this document is not being issued in the United States of America and should not be distributed to U.S. persons or publications with a general circulation in the United States. Any non-compliance with such restrictions may result in an infringement of U.S. securities laws. Securities of CREALOGIX Holding AG ('COMPANY') are not being publicly offered outside of Switzerland. In particular, the securities of the company have not been registered under the U.S. securities laws and may not be offered, sold or delivered within the United States or to U.S. persons absent the registration under or an applicable exemption from the registration requirements of the U.S. securities laws. This document does not constitute a prospectus according to article 652a or article 1156 of the Swiss code of obligations or article 27 et seq. of the SIX Swiss Exchange listing rules.

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