Ctac N : records higher revenue and stable profit in first nine months

PRESS RELEASE

Trading update Q3 2022 Ctac N.V.

PRESS RELEASE

About Ctac

As a Business & Cloud Integrator, Ctac helps its clients realise their ambitions. Ctac creates the required business value through constant innovation. Ctac offers a broad portfolio of solutions, including SAP and Microsoft 'on any cloud' solutions, and provides services in the fields of Modern Workplace, Integration, Transformation & Change management, Security & Trust and Business Transformation.

In addition, Ctac has a number of its own products, including the XV Retail Suite, which consists of an omnichannel-drivenPoint-of-Sale & Loyalty platform, and SaaS solutions for commercial real estate, Fit4RealEstate.

In 2022, Ctac had been in business for 30 years and over the years has built up extensive experience and material know-how in the retail, wholesale, manufacturing, real estate and professional services. In 2021, Ctac recorded revenue of € 106 million with on average 430 FTE and 161 professional hires.

Ctac has a balanced workforce in terms of age, expertise and experience. Ctac sees working together to realise common goals as a high priority. Ctac is listed on the Euronext Amsterdam stock exchange (ticker: CTAC) and has offices in 's-Hertogenbosch and in Wommelgem (Belgium).

	COLLABORATION		DRIVEN
ENTERPRENEURIAL		CONSCIOUS	RESULT ORIENTED

PORTFOLIO PILLARS

DIGITAL &	CUSTOMER	DATA DRIVEN	IP &	BUSINESS	BUSINESS
CONSULTING	EXPERIENCE	ENTERPRISE	PLATFORMS	INTEGRATION	SUPPORT

More information

Ctac N.V.	www.ctac.nl	Pieter-Paul Saasen | CEO
Meerendonkweg 11, 5216 TZ 's-Hertogenbosch		[e-mail]
PO Box 773, 5201 AT 's-Hertogenbosch		+31 (0)73 - 692 06 92
					In case of any inconcistencies the Dutch
					version of this press release is leading.	TRADING UPDATE Q3 2022 CTAC N.V. - 2

PRESS RELEASE

Ctac records higher revenue and stable profit in first nine months

's-Hertogenbosch, 26 October 2022 - Business & Cloud Integrator Ctac N.V. (Ctac) (Euronext Amsterdam: CTAC) today publishes a trading update for the first nine months and the third quarter (Q3) of 2022.

Highlights first nine months of 2022

Highlights third quarter of 2022

• Revenue rises by 12.5% to € 86.6 million, driven by strong organic growth and the Digimij and Technology2Enjoy acquisitions
• EBITDA stable at € 8.2 million; margin to 9.5%, due in part to investments in Ignite change programme and addition of new IT services
• Net result comes in 7.4% higher at € 2.9 million

• Revenue up by 17.3% at € 29.2 million, largely driven by organic growth and strong contribution from Secondment and projects
• EBITDA and EBIT stable at € 2.5 million and € 1.2 million respectively

Key figures		2022	2021	Delta	2022	2021	Delta
€ mln (unless stated otherwise)		YTD	YTD	Q3	Q3
Revenue (incl. other income)	86.6	77.0	12.5%	29.2	24.9	17.3%
EBITDA	8.2	8.2	0.0%	2.5	2.5	0.0%
EBIT	4.2	4.1	2.4%	1.2	1.2	0.0%
Net result	2.9	2.7	7.4%	0.8	0.8	0.0%

In case of any inconcistencies the Dutch
version of this press release is leading.	TRADING UPDATE Q3 2022 CTAC N.V. - 3

PRESS RELEASE

Pieter-Paul Saasen,

Ctac Chief Executive Officer:

"The first nine months of 2022 saw strong revenue growth of 12.5% compared with 2021. The growth achieved in both the Netherlands and Belgium was largely organic and was complemented in the Netherlands by the solid contribution from a number of recent strategic acquisitions.

Organic growth was particularly strong in Secondment and projects, while we also saw growth in Cloud services. This involved both long-term implementations of new digital (cloud) platforms, including ERP, and the delivery of specific expertise in smaller DEVOPS projects and secondment assignments, which together ensure a more effective and more flexible deployment of our teams. We can also see this reflected in increasing staff utilisation rates. We are also helping more clients to translate their strategic ambitions into a digital roadmap.

The integration of Technology2Enjoy, acquired in June 2022, is on track. The exchange of expertise gave an immediate boost to our range of services, including the adoption of SAP Public Cloud and the expansion of our services to the Professional Services market. We have signed a number of new long-term agreements with local government institutions, such as municipalities, where we are making a difference based on this specific domain expertise combined with the breadth of our range of services.

The roll-out of the internal change programme Ignite, aimed at strengthening our position as a Business & Cloud integrator, is going according to plan. Following the introduction of a new customer service concept, we can now flesh out the design of the new organisational model that is even more client-centric. This model enables us to translate our primary activities, 'Think, Build, Run (& Optimise)', into strategic objectives for employees, clients and partners.

In the third quarter, we further developed our ESG policy. In the coming period, we will focus in particular on the further electrification of our vehicle fleet and strengthening diversity within our teams. We are doing the latter via the likes of our collaboration with the Refugee Talent Hub and the recently started Ctac Masterclass, which is entirely dedicated to our Unified Commerce activities. In the spring of 2023, we will start another new master class, aimed at young talent that wants to develop in the field of (public) cloud ERP solutions.

For us, the year 2022 is all about strengthening our organisation, enabling us to create the optimum conditions for continued growth in the future. The investments in our Ignite change programme, the strengthening of our range of IT services and the recruitment of new talent are having an impact. The associated investments and additional costs are still putting some pressure on our operating result, but we do expect the impact of this to diminish in the coming quarter.

Increased energy prices (data centre activities), higher costs for software licences and rising interest rates are increasing cost pressures, but we are able to absorb most of these costs by indexing our rates. Barring unforeseen circumstances, we maintain our outlook for the full year 2022 of single-digit organic revenue growth and an EBITDA margin of 10%-12%."

In case of any inconcistencies the Dutch
version of this press release is leading.	TRADING UPDATE Q3 2022 CTAC N.V. - 4

PRESS RELEASE

GROUP PERFORMANCE

Revenue

In the third quarter of 2022, revenue came in at € 29.2 million, a rise of 17.3%, with 13.3% of this growth organic and the remaining 4.0% driven by the acquisition of Digimij and Technology2Enjoy.

Revenue per service	Q3 2022	Q3 2021	Delta
€ mln (unless stated otherwise)
Secondment and projects	18.1	13.8	31.2%
Cloud services	10.6	10.4	1.9%
Licence and hardware sales	0.5	0.7	-28.6%
Total	29.2	24.9	17.3%

Revenue from Secondment and projects increased by 31.2%, driven by organic growth in secondment activities and the acquisition of Digimij and Technology2Enjoy. In Cloud services, the biggest driver of revenue growth was the fact that more clients migrated from private to public cloud environments. Licence and hardware sales revenue declined due to lower sales.

Cloud services and Secondment and projects include security services revenue of € 3.1 million and € 0.2 million in the first nine months of 2022, respectively (Q3 2022: € 1.0 million and € 0.1 million, respectively). Looking at the sector breakdown, we see revenue for the public sector increasing to € 4.2 million in the first nine months of 2022 (Q3 2022: € 2.1 million).

Staff
Q3 2022	Q3 2021	Delta
FTE (unless stated otherwise)
Ultimo
Direct	381	332	14.8%
Indirect	89	102	-12.7%
Total	470	434	8.3%
Average
Direct	369	325	13.5%
Indirect	89	102	-12.7%
Total	458	427	7.3%
Professional temporary staff	180	138	30.4%

The number of direct FTEs had risen by 14.8% to 381 at end-September 2022, as a result of the acquisition of Digimij and Technology2Enjoy and our recruitment efforts. The average number of direct FTEs increased by 13.5%. The number of indirect FTEs had declined by 12.7% at end-September 2022. There was also an increase in the number of professional temporary staff (Direct), related to the growth in Secondment and projects.

In case of any inconcistencies the Dutch
version of this press release is leading.	TRADING UPDATE Q3 2022 CTAC N.V. - 5