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MarketScreener Homepage  >  Equities  >  NASDAQ OMX COPENHAGEN  >  SimCorp A/S    SIM   DK0060495240

SIMCORP A/S

(SIM)
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SimCorp A/S : Interim Report Q3 2020

11/12/2020 | 05:10am EST

Company reg. no: 15 50 52 81

Company Announcement no. 39/2020

November 12, 2020

Company Announcement

SimCorp reports revenue of EUR 310m and EBIT margin of 21% for the first nine months of 2020

Q3 2020 highlights:

  • In Q3 2020, four new SimCorp Dimension deals were signed, of which o Two deals were included in order intake and revenue
    o One deal was included in order intake, but revenue recognition has been deferred o For one deal, both order intake and revenue recognition have been deferred.
  • Order intake was EUR 21.7m, an increase of EUR 2.6m or 13.6% compared with Q3 2019.
  • Reported revenue was EUR 100.2m, a decrease of 14.7% compared with Q3 2019, due to a very strong Q3 2019 and revenue recognition of two new license deals being deferred.
  • EBIT was EUR 22.4m and EBIT margin was 22.3% compared with EBIT of EUR 35.2m and EBIT margin of 30.0% in Q3 2019.
  • Free cash flow was EUR 17.7m, a decrease of 16.7% compared with Q3 2019.
  • On August 12, SimCorp announced that it had completed the next phase in its cloud trans- formation, now offering SimCorp Dimension as a Service, on Microsoft Azure.

9M 2020 highlights:

  • In 9M 2020, seven new SimCorp Dimension and three new stand-alone SimCorp Coric license deals were signed, of which
    • Six deals were included in order intake and revenue
    • One deal was included in order intake, but revenue recognition has been deferred
    • For three deals, both order intake and revenue recognition have been deferred.
  • Order intake was EUR 58.5m, a decrease of EUR 4.6m or 7.3% compared with 9M 2019.
  • On September 30, 2020, the order book amounted to EUR 43.8m, an increase of EUR 8.8m compared with the order book at the same date last year.
  • Reported revenue was EUR 309.8m, a decrease of 5.2% compared with 9M 2019, due to a very strong 9M 2019 and revenue recognition of four new license deals being deferred.
  • EBIT was EUR 65.9m compared with EUR 93.9m in 9M 2019.
  • EBIT margin was 21.3% compared with 28.7% in 9M 2019.

Company Announcement

SimCorp reports revenue of EUR 310m and EBIT margin of 21% for the first nine months of 2020

  • Net profit was EUR 45.7m compared with EUR 72.6m in 9M 2019.
  • Free cash flow was EUR 70.5m, an increase of 6.8% compared with 9M 2019.
  • SimCorp entered Q4 2020 with EUR 399m of the full year's revenue signed, which is at the same level as at the same time last year.

Subsequent events:

  • Since the closing of Q3 2020, two SimCorp Dimension contracts and one new SimCorp Coric contract have been signed.
  • On October 12, SimCorp and State Street Bank International GmbH announced a non- binding Term Sheet to form a business partnership to provide a premier, fully integrated, front-to-back investment outsourcing solution, for insurance firms in EMEA.

Financial guidance 2020:

  • SimCorp maintains its expectations for revenue growth and EBIT margin measured in local currencies for 2020 as announced in its Q2 interim report and company announcement dated October 12, 2020.
  • Revenue growth measured in local currencies is expected to be between -5% and 5%, and the expectation for EBIT margin measured in local currencies is between 22.0% and 27.0%.
  • Approximately 1.5%-points (previously 2%-point) of the expected revenue growth is related to the acquisition of AIM Software, and the acquisition is expected to impact the EBIT margin negatively by approximately 1%-point, implying an expected organic revenue growth of be- tween -6.5% and 3.5% (previously between -7% and 3%) and an EBIT margin of between 23.0% to 28.0%.

Klaus Holse, SimCorp CEO comments: "With a total of ten new clients in the first nine months of the year, our win rate has been satisfactory despite the challenges caused by the Covid-19 pan- demic. A strong focus on building strategic partnerships, most recently with State Street, a highly loyal client base, and not least a deeply committed team make me confident that we are well positioned for closing the year on a strong note."

Page 2 of 28

Company Announcement

SimCorp reports revenue of EUR 310m and EBIT margin of 21% for the first nine months of 2020

Investor presentation

SimCorp's Executive Management Board will present the report at a conference call on Thursday November 12, 2020 at 11:00 am (CET). Please use any of the following phone numbers to dial in to the conference call:

From Denmark:

+45

32720417

From USA:

+1 6467413167

From other countries:

+44

(0) 2071 928338

Pin code to access the call:

6677753

At the end of the presentation there will be a Q&A session.

It will also be possible to follow the presentation via this link: https://edge.media-server.com/mmc/p/9g6c46eg

The presentation will be available prior to the conference call via SimCorp's website http://www.simcorp.com/en/about/investor/presentations-and-events/quarterly-and-annual-investor-meetings.

Enquiries regarding this announcement should be addressed to:

Investor contacts:

Klaus Holse, Chief Executive Officer, SimCorp A/S (+45 3544 8800, +45 2326 0000) Michael Rosenvold, Chief Financial Officer, SimCorp A/S (+45 3544 8800, +45 5235 0000) Anders Hjort, Head of Investor Relations, SimCorp A/S (+45 3544 8822, +45 2892 8881)

Media contact:

Mette Trier, Communications Principal, SimCorp A/S (+45 4060 8296)

Mittal Shah, PR Manager - SimCorp UK, North America, Asia Pacific (+44 (0)207 397 8072)

Company Announcement no. 39/2020

Page 3 of 28

Company Announcement

SimCorp reports revenue of EUR 310m and EBIT margin of 21% for the first nine months of 2020

Financial highlights and key ratios for the SimCorp Group

2020

2019

2020

2019

2019

EUR '000

Q3

Q3

9M

9M

FY

INCOME STATEMENT

Revenue

100,150

117,424

309,801

326,692

454,531

Earnings before interest, tax, depreciation, and amortization (EBITDA)

26,312

38,987

77,962

104,258

142,576

Operating profit (EBIT)

22,366

35,179

65,888

93,869

127,824

Financial items, net

-3,435

2,422

-4,682

1,861

-23

Profit before tax

18,931

37,601

61,206

95,730

127,801

Profit for the period

14,090

29,260

45,679

72,565

96,901

BALANCE SHEET

Share capital

5,441

5,441

5,441

5,441

5,441

Total equity

233,564

203,747

233,564

203,747

230,020

Revolving credit facility

-

20,000

-

20,000

20,000

Intangible assets

96,596

99,930

96,596

99,930

99,557

Property, plant, and equipment

49,433

52,231

49,433

52,231

55,650

Receivables

79,974

76,246

79,974

76,246

81,804

Contract assets

150,638

133,498

150,638

133,498

151,774

Cash and cash equivalents

32,617

26,903

32,617

26,903

31,851

Total assets

427,807

405,065

427,807

405,065

437,912

CASH FLOW

Net cash from operating activities

20,275

23,826

79,791

74,489

82,505

Net cash used in investing activities

-188

-58,446

-2,199

-59,685

-60,214

Net cash used in financing activities

-27,771

14,138

-77,281

-35,654

-38,249

Free cash flow

17,691

21,245

70,510

66,001

70,903

Investment in property, plant, and equipment

216

-

1,916

1,240

1,722

Change in cash and cash equivalents

-7,684

-20,482

311

-20,850

-15,958

EMPLOYEES

Number of employees at the end of the period

1,906

1,829

1,906

1,829

1,871

Average number of employees - FTE

1,837

1,733

1,842

1,670

1,703

FINANCIAL RATIOS

EBIT margin (%)

22.3

30.0

21.3

28.7

28.1

ROIC (return on invested capital) (%)

36.7

65.7

35.7

66.8

58.7

Receivables turnover ratio

8.9

10.2

9.2

9.4

9.3

Equity ratio (%)

54.6

50.3

54.6

50.3

52.5

Return on equity (%)

24.9

61.9

25.6

50.3

46.5

SHARE PERFORMANCE

Earnings per share - EPS (EUR)

0.35

0.74

1.15

1.83

2.44

Diluted earnings per share - EPS-D (EUR)

0.35

0.73

1.14

1.81

2.42

Cash flow per share - CFPS (EUR)

0.51

0.60

1.99

1.86

2.08

MARKET VALUE RATIOS

Average number of shares (m)

40.1

39.6

39.8

39.7

39.7

Average number of shares - diluted (m)

40.4

40.0

40.2

40.1

40.1

EUR/DKK rate of exchange at end of period

7.4462

7.4662

7.4462

7.4662

7.4697

Please refer to the definition of ratios on page 56 of the Annual Report 2019. The interim report is unaudited and has not been reviewed by external auditors.

Page 4 of 28

Company Announcement

SimCorp reports revenue of EUR 310m and EBIT margin of 21% for the first nine months of 2020

Management's report

Development in sales and orders

Four new SimCorp Dimension contracts were signed in Q3 2020, three in APAC and one in North America (NA), all on subscription-based terms.

Region

Client

Product

Order intake Revenue Comments

APAC

Central Bank of Sri Lanka

SimCorp Dimension

APAC

Undisclosed investment manager

SimCorp Dimension

Revenue will be recognized after expiry

of opt out clause

APAC

Undisclosed investment manager

SimCorp Dimension

Order intake and revenue will be recognized

over next two years based on milestones

North

Undisclosed investment manager

SimCorp Dimension

Datacare revenue will be recognized in a

America

& Datacare

straight line over the term of the agreement

One of the new orders in APAC was recognized in Q3 2020, another is expected to be recognized in Q4 2020, and the third order has milestone-based recognition, with the milestones expected to be satisfied over the next two years.

In North America, two SimCorp Dimension orders were recognized in Q3 2020, one from an order signed in Q1 2020 and one from the order signed in Q3 2020.

Of the three clients signed in APAC in Q3 2020, one is a fund management company and two are central banks, one being the Central Bank of Sri Lanka. All three are front-to-back SimCorp Dimension agreements, of which one is a cloud-based deployment. The client in North America signed in Q3 2020 is a state pension fund, who will use SimCorp Dimension for a front, middle and back office cloud-based deployment, including two of our recent, strategic offerings, SimCorp BI and SimCorp Datacare.

As mentioned above revenue was recognized in Q3 2020 on an order signed in North America in Q1 2020. The client, Mawer Investment Management Ltd., will use SimCorp Dimension as its multi- asset, front-to-back, investment management platform. The agreement is one in a series of recent North American front-to-back deals, which see buy-side firms choosing SimCorp's front office.

Two existing SimCorp Dimension clients in NA have auto-renewed for two years with effective dates in January 2021. The renewals have been included in order intake and in the order book in Q3 2020, while revenue recognition will take place in Q1 2021. One SimCorp Coric client in EMEA renewed its contracts in Q3 2020.

In Q3 2020, there was one conversion from perpetual to subscription-based license compared with one conversion in Q3 2019. The conversion in Q3 2020 increased order intake by EUR 4.5m, while revenue recognition is deferred and will predominantly be recognized in December 2020, with the remaining part being recognized in 2023 and 2024. In Q3 2019, the revenue recognition from the conversion was EUR 4.7m.

Total order intake in Q3 2020 was EUR 21.7m compared with EUR 19.3m in the same period last year. Datacare order intake accounted for EUR 2.2m in Q3 2020.

Page 5 of 28

Company Announcement

SimCorp reports revenue of EUR 310m and EBIT margin of 21% for the first nine months of 2020

Income recognized from initial and additional licenses totaled EUR 14.8m in Q3 2020, EUR 15.8m lower than in Q3 2019, as Q3 2019 included both the revenue recognition of a large order in Asia where the contract was signed in 2018, and the revenue recognition of a conversion from perpetual to subscription-based license as mentioned above.

In 9M 2020, order intake was EUR 58.5m compared with EUR 63.1m in the same period last year.

A total of seven new subscription-based SimCorp Dimension license contracts and three new stand- alone SimCorp Coric license contracts were signed during the first nine months of the year. This is the same number of new SimCorp Dimension and SimCorp Coric clients as in 9M 2019. Two of the new SimCorp Dimension agreements in 9M 2020 included Datacare.

In 9M 2020, three SimCorp Dimension and three SimCorp Coric agreements were renewed, compared with twelve SimCorp Coric agreements in 9M 2019. The renewal of SimCorp Italiana's subscription -based agreements amounted to EUR 5.7m in 9M 2020 compared with EUR 5.0m in same period last year.

On September 30, 2020, the order book amounted to EUR 43.8m, an increase of EUR 8.8m compared with same date last year. Compared with June 30, 2020, the order book had increased by EUR 4.7m.

  • Order intake and order book include initial licenses to new clients as well as additional licenses to existing clients. The order book is the total license value of signed license agreements, including Client-Driven Development (CDD) orders, that has not yet been recognized in income. SimCorp Gain order intake and order book have been included since the acquisition. From 2020, the order book includes Subscription Services such as Datacare and SFTR, and accordingly Q4 2019 was adjusted by Subscription Services of EUR 1.8m.

Page 6 of 28

Company Announcement

SimCorp reports revenue of EUR 310m and EBIT margin of 21% for the first nine months of 2020

Revenue

Q3 2020 revenue in reported currency was EUR 100.2m, 14.7% lower than the strong Q3 2019. Measured in local currencies the decrease was 13.0%. The acquisition of SimCorp Gain accounted for 0.6%-points. Revenue measured in local currency excluding M&A activities has decreased by 13.6%.

SimCorp generated revenue of EUR 309.8m in 9M 2020 compared with EUR 326.7m in 9M 2019, equivalent to a decrease of 5.2%. Exchange rate fluctuations for the period had a negative impact on revenue of EUR 1.1m, equal to 0.4%. Measured in local currencies, revenue thus decreased by 4.8%. The acquisition of SimCorp Gain accounts for 2.1%-point, and measured in local currencies, the organic growth declined by 6.9%.

The development and distribution of quarterly revenue are shown below:

Q3 2020 revenue growth

Q3 2019 revenue growth

2.3%

2.4%

40.8%

43.1%

45.5%

(13.0)%

(13.6)%

(14.7)%

0.6%

(1.7)%

Organic M&A impact Local

FX impact

Reported

Organic M&A impact Local

FX impact Reported

currencies

currencies

9M 2020 revenue growth

9M 2019 revenue growth

0.7%

2.1%

26.1%

26.8%

28.9%

(4.8)%

(6.9)%

(5.2)%

2.1%

(0.4)%

Organic M&A impact Local

FX impact Reported

Organic M&A impact

Local

FX impact Reported

currencies

currencies

Page 7 of 28

Company Announcement

SimCorp reports revenue of EUR 310m and EBIT margin of 21% for the first nine months of 2020

The development and distribution of quarterly revenue are shown below:

Q3 revenue

Revenue

Organic

Share of

Share of

growth

revenue

EURm

Revenue

revenue

Revenue

revenue

Revenue

local

growth local

Q3 2020

Q3 2020

Q3 2019

Q3 2019

growth

currency

currencies

Licenses - initial sales

8.5

11.7%

13.7

11.7%

-37.7%

-33.6%

-33.6%

Licenses - additional sales

6.3

14.4%

16.9

14.4%

-62.5%

-62.1%

-62.2%

Software updates and support

43.2

36.3%

42.6

36.3%

1.2%

2.2%

1.5%

Professional services

36.0

30.7%

36.1

30.7%

-0.3%

1.8%

0.8%

Hosting and other fees

6.2

6.9%

8.2

6.9%

-24.1%

-21.3%

-22.7%

Total revenue

100.2

100.0%

117.4

100.0%

-14.7%

-13.0%

-13.6%

9M revenue

Revenue

Organic

Share of

Share of

growth

revenue

EURm

Revenue

revenue

Revenue

revenue

Revenue

local

growth local

9M 2020

9M 2020

9M 2019

9M 2019

growth

currency

currencies

Licenses - initial sales

13.0

10.9%

35.6

10.9%

-63.4%

-62.0%

-62.0%

Licenses - additional sales

36.1

11.6%

38.0

11.6%

-5.0%

-5.1%

-9.1%

Software updates and support

132.1

38.2%

124.9

38.2%

5.8%

6.0%

4.4%

Professional services

111.0

33.0%

107.8

33.0%

3.0%

3.2%

0.9%

Hosting and other fees

17.6

6.3%

20.4

6.3%

-14.0%

-13.3%

-17.6%

Total revenue

309.8

100.0%

326.7

100.0%

-5.2%

-4.8%

-6.9%

In Q3 2020, SimCorp had initial license sales of EUR 8.5m, EUR 5.2m lower than Q3 2019, mainly due to a very strong Q3 2019, and partly due to revenue recognition for two initial license deals being deferred as certain conditions need to be fulfilled before the license fee can be recognized.

Page 8 of 28

Company Announcement

SimCorp reports revenue of EUR 310m and EBIT margin of 21% for the first nine months of 2020

Revenue recognized from initial and additional license sales totaled EUR 14.8m, EUR 15.8m less than the strong Q3 2019.

In 9M 2020, revenue recognized from initial and additional license sales was EUR 49.1m, a decrease of EUR 24.5m, or 33.3% compared with the strong 9M 2019. Currency fluctuations impacted total license fee negatively by EUR 0.5m. Measured in local currencies, the decrease was 32.6%. The underlying organic revenue change in total license fee was a decline of 34.7% in 9M 2020, reflecting a 2.1%-points positive impact from the acquisition of AIM Software.

In Q3 2020, no conversion from perpetual to subscription-based license were revenue recognized (Q3 2019: 28%). Renewals accounted for around 49% (Q3 2019: 19%) of additional sales, and additional regular license sales accounted for 51% (Q3 2019: 53%) of total additional license sales.

In 9M 2020, revenue from conversions accounted for around 17% (9M 2019: 21%) of the total addi-

tional license sales, while renewals accounted for 29% (9M 2019: around 22%), and additional reg-

ular license sales accounted for 54% (9M 2019: around 57%) of total additional license sales.

The split of additional license sales is shown below:

Q3 2020 additional license sales split

Q3 2019 additional license sales split

0%

28%

49%

EUR

EUR

6.3m

16.9m

51%

53%

19%

Additional regular license sales

Additional regular license sales

Renewals

Renewals

Conversions

Conversions

9M 2020 additional license sales split

9M 2019 additional license sales split

17%

21%

29%

EUR

22%

EUR

57%

36.1m

54%

38.0m

Additional regular license sales

Additional regular license sales

Renewals

Renewals

Conversions

Conversions

In Q3 2020, software updates and support revenue increased by 1.2% from EUR 42.6m in Q3 2019 to EUR 43.2m. Currency fluctuations impacted the software updates and support revenue negatively by 1.0%-points, and the acquisition of AIM Software impacted the software updates and support

Page 9 of 28

Company Announcement

SimCorp reports revenue of EUR 310m and EBIT margin of 21% for the first nine months of 2020

revenue positively by 0.7%-points. Consequently, organic growth for Q3 in software updates and support revenue was 1.5%.

In 9M 2020, software updates and support revenue increased by 5.8% from EUR 124.9m for the same period last year to EUR 132.1m. Currency fluctuations impacted the software updates and support revenue negatively by 0.2%-points, and the acquisition of AIM Software impacted the software updates and support revenue positively by 1.6%-points. Consequently, organic growth for 9M in software updates and support revenue was 4.4%.

Fees from professional services amounted to EUR 36.0m in Q3 2020 compared with EUR 36.1m in Q3 2019, a decrease of 0.3% in reported currency. Currency fluctuations impacted the revenue negatively by 2.1%-points, while the acquisition of AIM Software impacted the professional services revenue positively by 1.0%-points, resulting in positive organic growth of 0.8%.

In 9M 2020, fees from professional services increased by 3.0% from EUR 107.8m last year to EUR 111.0m. Currency fluctuations impacted the professional services revenue negatively by 0.2%- points, while the acquisition of AIM Software impacted the professional services revenue positively by 2.3%-points. Consequently, organic growth in professional services revenue was 0.9%.

Hosting, other fees, and selling of other third-party products amounted to EUR 6.2m compared with EUR 8.2m in Q3 2019. In Q3 2020, we added two new ASP hosted clients, bringing the total number of clients on an ASP hosted solution to 24.

In 9M 2020, hosting, other fees, and selling of other third-party products amounted to EUR 17.6m compared with EUR 20.4m in 9M 2019.

Operating costs

In early March, several cost reduction measures were taken, including travel restrictions, hiring freeze on non-critical positions, and postponement of planned salary increases from January 1 to July 1, 2020. Furthermore, the annual International User Committee Meeting (IUCM) has been postponed from September 2020 to April 2021. The effect of these measures was visible in both Q3 and 9M 2020.

On the other hand, SimCorp remains committed to continue investing in its products, people, and strategic priorities, including cloud lift and other research and development priorities, to realize its long-term growth ambitions. As a consequence, research and development costs increased organically by 7.3% in 9M 2020, while all other cost lines declined organically.

SimCorp's total operating costs (including depreciation and amortization) were EUR 78.1m in Q3 2020 compared with EUR 82.5m in Q3 2019, a decrease of 5.3% in reported currency. Currency fluctuations reduced the total operating costs by 1.0%. Measured in local currencies and adjusted for the impact of the acquisition of AIM Software of 1.8%, organic operating costs were reduced by 6.1%.

In 9M 2020, the total operating costs (including depreciation and amortization) were EUR 244.7m compared with EUR 233.2m in 9M 2019, an increase of 4.9% in reported currency. Currency fluctuations reduced the total operating costs by 0.2%. Measured in local currencies and adjusted for the impact of the acquisition of AIM Software of 4.0%, the organic operating costs increased by 1.1% compared with 9M 2019.

Page 10 of 28

Company Announcement

SimCorp reports revenue of EUR 310m and EBIT margin of 21% for the first nine months of 2020

In 9M 2020, 74% of SimCorp's total operating costs were directly related to employees, compared with 69% in 9M 2019.

The development and distribution of quarterly operating costs are shown in the tables below:

Q3 operating costs

Organic

Share of

Share of

Share of

Share of

Growth

growth

Costs

costs

revenue

Costs

costs

revenue

local

local

EURm

Q3 2020

Q3 2020

Q3 2020

Q3 2019

Q3 2019

Q3 2019

Growth

currency

currency

Cost of sales

39.1

50.1%

39.0%

40.8

49.4%

34.6%

-4.1%

-2.5%

-4.2%

Research and development costs

21.8

27.9%

21.8%

21.5

26.0%

18.3%

1.5%

1.4%

1.6%

Sales and marketing costs

11.6

14.8%

11.6%

13.1

15.9%

11.2%

-11.7%

-9.9%

-12.6%

Administrative expenses

5.6

7.2%

5.6%

7.1

8.7%

6.1%

-21.3%

-21.8%

-28.4%

Total operating cost

78.1

100.0%

77.9%

82.5

100.0%

70.2%

-5.3%

-4.3%

-6.1%

9M operating costs

Organic

Share of

Share of

Share of

Share of

Growth

growth

Costs

costs

revenue

Costs

costs

revenue

local

local

EURm

9M 2020

9M 2020

9M 2020

9M 2019

9M 2019

9M 2019

Growth

currency

currency

Cost of sales

122.7

50.2%

39.6%

119.7

51.3%

36.6%

2.5%

2.8%

-0.6%

Research and development costs

66.5

27.2%

21.5%

59.9

25.7%

18.3%

10.9%

10.9%

7.3%

Sales and marketing costs

36.1

14.7%

11.6%

34.7

14.9%

10.6%

4.1%

4.5%

-2.1%

Administrative expenses

19.4

7.9%

6.3%

18.9

8.1%

5.8%

2.7%

2.5%

-1.6%

Total operating cost

244.7

100.0%

79.0%

233.2

100.0%

71.4%

4.9%

5.1%

1.1%

Page 11 of 28

Company Announcement

SimCorp reports revenue of EUR 310m and EBIT margin of 21% for the first nine months of 2020

Employees

The average number of full-time employees increased by 10.3% from 1,670 in 9M 2019 to 1,842 in 9M 2020, of which 71 employees are related to the acquisition of AIM Software. The number of employees (headcount) was 1,906 at the end of 9M 2020 compared with 1,829 at the end of 9M 2019, an increase of 77 employees.

Group performance

In Q3 2020, the Group posted EBIT of EUR 22.4m compared with EUR 35.2m in Q3 2019. The reported EBIT margin was 22.3% compared with 30.0% in Q3 2019. Currency rate fluctuations had a negative net impact on EBIT of EUR 1.2m or 0.8%-points in Q3 2020 and the acquisition of AIM Software had a negative impact on the EBIT margin of 0.7%-points. The underlying organic EBIT margin measured in local currency was 23.8%.

For 9M 2020, the Group generated an EBIT of EUR 65.9m compared with EUR 93.9m in 9M 2019, a difference of EUR 28.0m. However, the 9M 2020 EBIT margin is still the second highest 9M EBIT margin achieved in the last five years. The reported EBIT margin was 21.3% compared with the EBIT margin of 28.7% in 9M 2019. Exchange rate fluctuations had a negative net impact on EBIT of EUR 0.8m, or 0.1%-points. The acquisition of AIM Software had a negative impact on the EBIT margin of 1.2%-points. The underlying organic EBIT margin was 22.6%.

The currency and M&A impact on EBIT margin are shown below:

Q3 2020 EBIT margin

Q3 2019 EBIT margin

0.7%

(0.7)%

(0.8)%

(1.3)%

23.8%

23.1%

22.3%

30.6%

29.3%

30.0%

Organic

M&A impactLocal currencies FX impact

Reported

Organic M&A impact

Local

FX impact Reported

currencies

9M 2020 EBIT margin

9M 2019 EBIT margin

(0.5)%

0.5%

(1.2)%

(0.1)%

28.7%

28.2%

28.2%

28.7%

22.6%

21.4%

21.3%

Organic

M&A impact

Local

FX impact

Reported

Organic

M&A impact

Local

FX impact

Reported

currencies

currencies

Page 12 of 28

Company Announcement

SimCorp reports revenue of EUR 310m and EBIT margin of 21% for the first nine months of 2020

The development in quarterly EBIT is shown below:

The development in Q3 and 9M EBIT and EBIT margin over the last five years are shown below: Q3 EBIT and EBIT margin for the last five years

EURm

40

35%

35

30.0%

30%

30

27.0%

24.2%

22.3%

25%

25

18.8%

20%

20

15

35.2

15%

10

20.6

19.6

22.4

10%

15.1

5

5%

0

0%

Q3 2016*

Q3 2017

Q3 2018

Q3 2019

Q3 2020

EBIT

EBIT margin (RHS)

Page 13 of 28

Company Announcement

SimCorp reports revenue of EUR 310m and EBIT margin of 21% for the first nine months of 2020

9M EBIT and EBIT margin for the last five years

EURm

100

35%

90

28.7%

30%

80

70

20.8%

20.7%

21.3%

25%

60

18.8%

20%

50

93.9

15%

40

30

65.9

10%

52.5

20

43.3

43.0

5%

10

0

0%

9M 2016*

9M 2017

9M 2018

9M 2019

9M 2020

EBIT

EBIT margin (RHS)

* 2016 restated based on IFRS 15.

Profit and comprehensive income

Financial items for Q3 2020 comprised a net expense of EUR 3.4m compared with a net income of EUR 2.4m in the same period last year. Financial income and expenses were primarily related to foreign exchange adjustments.

In Q3 2020, the Group realized a pre-tax profit of EUR 18.9m, against EUR 37.6m in Q3 2019, and a net profit of EUR 14.1m compared with EUR 29.3m in the same quarter last year.

Exchange rate adjustments on translation of foreign assets and liabilities amounted to a net expense of EUR 0.9m in Q3 2020, which is included in other comprehensive income. Total comprehensive income amounted to EUR 13.2m against EUR 30.5m in Q3 2019.

Financial items for 9M 2020 comprised a net expense of EUR 4.7m compared with a net income of EUR 1.9m in same period last year. The Group posted pre-tax profit of EUR 61.2m against pre-tax profit of EUR 95.7m in 9M 2019.

The estimated tax charge of EUR 15.5m is equivalent to a tax rate of 25.4% compared with the estimated tax of EUR 23.2m and a tax rate of 24.2% in 9M 2019. Thus, the Group's net profit for 9M 2020 amounted to EUR 45.7m against a profit of EUR 72.6m for the same period last year.

After exchange rate adjustments on translation of foreign assets and liabilities, a net expense of EUR 2.5m, the total comprehensive income amounted to EUR 43.2m against EUR 73.7m in 9M 2019.

Page 14 of 28

Company Announcement

SimCorp reports revenue of EUR 310m and EBIT margin of 21% for the first nine months of 2020

Balance sheet

SimCorp's total assets were EUR 427.8m at September 30, 2020 compared with EUR 405.1m a year earlier, an increase of EUR 22.7m. The increase is primarily related to changes in contract assets of EUR 17.1m.

Cash holdings amounted to EUR 32.6m compared with EUR 26.9m a year earlier. The net cash position was also EUR 32.6m at the end of September 2020 compared with EUR 6.9m at the end of September 2019.

Receivables amounted to EUR 80.0m on September 30, 2020, representing an increase of EUR 3.7m compared with September 30, 2019, but EUR 1.8m lower than on December 31, 2019.

Compared with December 31, 2019 contract assets decreased by EUR 1.1m from EUR 151.8m to EUR 150.6m. New and additional subscription-based licenses added EUR 26.6m to contract assets, finance income recognized added EUR 1.7m, while invoiced subscription-based license fee reduced the balance by EUR 29.3m, and foreign exchange adjustments and expected loss provisions reduced the balance by EUR 0.2m.

The Group's total non-current assets were EUR 154.7m compared with EUR 163.5m on December 31, 2019 and EUR 159.6m on September 30, 2019.

Goodwill was EUR 61.3m on September 30, 2020 compared with EUR 61.2m on December 31, 2019 and EUR 60.7m at the end of September 2019. A final purchase price adjustment of EUR 0.4m to liabilities was made in relation to the acquisition of AIM Software, increasing the goodwill. No impairment to goodwill was made in 9M 2020.

The carrying amount of acquired software was EUR 11.9m compared with EUR 13.3m at the end of 2019 and the value of client relationships was EUR 23.4m compared with EUR 25.0m at the end of 2019. The decreases were due to amortization.

The carrying amount of leasehold assets was EUR 45.4m compared with EUR 51.6m at the end of 2019 and EUR 48.3m at the end September 2019. The decreases were due to amortization.

Other property, plant, and equipment amounted to EUR 2.9m, compared with EUR 2.6m at the end of 2019 and EUR 2.2m at the end September 2019.

Other financial assets of EUR 0.4m includes an investment in Alkymi.

Deferred tax assets was EUR 5.4m, which was at the same level as at the end of 2019.

Investments

The fair values of the identifiable assets and liabilities at the date of acquisition in 2019 were provisionally estimated and disclosed in Q3 2019. The values were finalized after 12 months and adjusted following the identification of additional liabilities of EUR 0.4m. Comparative figures have not been restated.

The final purchase price allocation in relation to the acquisition of AIM Software is shown below:

Page 15 of 28

Company Announcement

SimCorp reports revenue of EUR 310m and EBIT margin of 21% for the first nine months of 2020

FAIR VALUE AT ACQUISITION

Preliminary

EUR '000

August 1, 2019

Adjustments

July 31, 2020

Intangible assets - client relationships

18,990

18,990

Intangible assets - software

9,392

9,392

Property, plant, and equipment

1,199

1,199

Receivables

3,954

3,954

Contract assets

2,598

2,598

Cash and cash equivalents

4,431

4,431

Deferred tax liability

-5,771

-5,771

Income tax payable

-109

-109

Prepayments from clients

-1,833

-1,833

Trade and other payables

-2,120

-405

-2,525

Lease liabilities

-856

-856

Identifiable net assets

29,875

-405

29,480

GOODWILL

EUR '000

August 1, 2019

July 31,2020

Consideration transferred

62,899

62,899

Fair value of identifiable net assets

-29,875

405

-29,475

Goodwill

33,024

405

33,429

Cash flow

Q3 2020, free cash flow (cash flow from operations reduced by CAPEX and reduced by the principal element of lease payments) was EUR 17.7m compared with EUR 21.3m in Q3 2019, a decrease of 16.7%.

In 9M 2020, free cash flow was EUR 70.5m compared with EUR 66.0m in 9M 2019, an increase of 6.8%.

Operating activities generated in Q3 2020 a cash inflow of EUR 20.3m compared with EUR 23.8m in the same period last year.

In 9M 2020, operating activities generated a cash inflow of EUR 79.8m compared with EUR 74.5m in same period last year. Payment of income taxes amounted to EUR 8.5m, against EUR 10.5m in 9M 2019.

In Q3 2020, EUR 0.2m was spent on investing activities compared with EUR 58.4m in Q3 2019, and for 9M 2020, EUR 2.2m was spent on investing activities compared with EUR 59.7m in 9M 2019. The higher amount in 2019 was due to the acquisition of AIM Software.

Cash used in financing activities in Q3 2020 of EUR 27.8m related to the purchase of treasury shares of EUR 1.9m, repayment of lease liabilities of EUR 2.4m, and repayment of credit facilities of EUR 23.5m compared with purchase of treasury shares of EUR 3.3m, repayment of lease liabilities of EUR 2.6m and withdrawal of EUR 20.0m from credit facilities in the same period last year.

Cash used in financing activities in 9M 2020 of EUR 77.3m related to the payment of dividends of EUR 39.9m, purchase of treasury shares of EUR 10.0m, repayment of lease liabilities of EUR 7.4m, and net repayment of credit facilities of EUR 20.0m compared with payment of dividends of EUR 35.9m, purchase of treasury shares of EUR 12.5m, repayment of lease liabilities of EUR 7.3m, and withdrawal from credit facilities of EUR 20.0m in the same period last year.

Page 16 of 28

Company Announcement

SimCorp reports revenue of EUR 310m and EBIT margin of 21% for the first nine months of 2020

Changes in equity

The company's equity amounted to EUR 233.6m on September 30, 2020. This was an increase of EUR 3.5m compared with December 31, 2019. Equity was reduced by the purchase of treasury shares of EUR 10.0m and by dividends of EUR 39.9m. Equity was increased by comprehensive income in 9M 2020 of EUR 43.2m as well as effects of share-based remuneration of EUR 10.2m, net of tax.

Strategy update

In 2019, we presented our new strategy, outlining how we are entering a new phase in the evolution of SimCorp, through which we are transforming SimCorp to become a software-enabled service company. With our cloud transformation as the underlying key enabler, we defined the three strategic imperatives that are forming our overall strategic journey:

  1. Customer experience leadership: We will take responsibility for solving clients' key busi- ness challenges and improving their competitiveness, not just provide them with tools and technology
  2. Everything as a service: We will make it easy, flexible, and cost effective for clients to consume our technology solutions
  3. Ecosystem enabled innovation: We will strengthen our capacity and ability to innovate by leveraging the innovation power and scale of a broad-based external ecosystem

During 2020, we have made solid progress on the execution of our three strategic imperatives, also gaining a deeper and broader understanding of the key steps we need to take on our journey towards becoming a software-enabled service company. We see early signs that our new client engagement model is generating more strategic dialogues with our key client stakeholders.

Customer experience leadership

Being responsive to our clients' needs and delivering on our commitments have always been central to how we conduct our business. We believe that elevating and working systematically with customer experience has the potential to become a real competitive differentiator and source of significant value creation to SimCorp. Already, we have transformed our go-to-market and engagement model, supported by an organizational setup based on client lifecycle needs and with clear accountabilities for driving client success.

Complexity in our business is increasing, which places additional demand on our ability to scale profitably, and results in an ever growing need to industrialize our client engagement efforts. To cater for this development, we need to be more sophisticated and systematic in terms of how we use our resources to win new clients and expand and renew our business with existing ones.

Everything as a service

The trend towards clients wanting to buy and consume everything as-a-service is continuing with growing momentum. By executing on our everything-as-a-service imperative, we want to make it easy, flexible, cost-effective and highly valuable for clients to consume our technology solutions. Moreover, we want to leverage our developing service capabilities to capture a significantly larger share of our clients' overall IT spend. Furthermore, we believe there are strong mutually reinforcing synergies to be gained by being able to combine deep application and technology knowledge with service delivery capabilities, both from a commercial and an operational efficiency perspective.

Page 17 of 28

Company Announcement

SimCorp reports revenue of EUR 310m and EBIT margin of 21% for the first nine months of 2020

We have now gained some experience with what it means to operate managed services whereby we take responsibility for delivering an operational output on a continuous basis. This is fundamentally different from the types of discrete or project-based services we are used to delivering in the traditional 'sell and implement' operating model, where the goal is to maximize billable hours, resource utilization, and bill rate. In future, we will have changed to become, at least partially, an operations company with a multi-delivery mode capability.

Ecosystem enabled innovation

In the past year, we have seen several examples of how our industry is becoming gradually more ecosystem-driven. Companies are forming partnerships and alliances at an increasing pace and in- tensity, with the aim of amplifying their value propositions in ways they would not have been able to on their own.

Ultimately, we want to secure the long-term sustainability of our business. We believe this will require that we transform into a platform business offering buy side firms end-to-end digitalization of their investment life cycle needs. This implies building out an ecosystem of connected partners with complementary capabilities who leverage the SimCorp platform as a key gateway to the market.

We plan to accelerate the development of commercial partnerships with third-party solution provid- ers, as partnerships in general constitute an underutilized lever to innovate and scale our business. The creation of a rich partner ecosystem will add to SimCorp's net capacity to deliver innovation to its clients, thereby increasing stickiness and growing our share of clients' wallets.

In addition, we will continue to build alliances with various capital markets infrastructure providers, such as custodians, to strengthen our platform value proposition and access market segments we do not want to or are not able to reach as effectively directly.

Must-win battles

Our must-win battles have evolved to the following five strategic focus areas:

  • Cloud offer
  • Front office
  • Alternative investments
  • Coric Engage
  • Datacare

Board and Committee matters

The Board has approved that the scope of SimCorp's Audit Committee has been extended to also cover matters related to the categories of principal risk to which SimCorp may be exposed. Conse- quently, the Audit Committee has been renamed Audit and Risk Committee and its Terms of Reference have been updated accordingly and can be found on the company website.

Page 18 of 28

Company Announcement

SimCorp reports revenue of EUR 310m and EBIT margin of 21% for the first nine months of 2020

Outlook for the financial year 2020*

SimCorp generated a financial result during the first nine months of 2020 in line with SimCorp's expectations as per Q2 2020 guidance. The 9M 2020 intake of orders was EUR 58.5m compared with EUR 61.3m 9M 2019. SimCorp's intake of license contract orders and revenue recognition varies considerably from one period to the next.

SimCorp enters Q4 2020 with signed revenue of EUR 399m of the projected revenue for 2020, which is at same level as at the same time in 2019. So far in Q4, two new SimCorp Dimension contracts and one new SimCorp Coric contract have been signed.

SimCorp continues to experience a satisfactory, geographically diversified demand for its products and services, but the future outlook remains more uncertain than normal, as it is still difficult to predict the length and impact of lock-downs and restrictions following Covid-19, and how this might impact client behavior.

SimCorp maintains its expectations for revenue growth and EBIT margin measured in local currencies for 2020 as announced in its Q2 2020 interim report and company announcement dated October 12, 2020.

Revenue growth measured in local currencies is expected to be between -5% and 5%, and the expectation for EBIT margin measured in local currencies is between 22.0% and 27.0%.

Approximately 1.5%-points (previously 2%-point) of the expected revenue growth above is related to the acquisition of AIM Software, and the acquisition is expected to impact the EBIT margin negatively by approximately 1%-point, implying an expected organic revenue growth of between -6.5% and 3.5% (previously between -7% and 3%) and an EBIT margin of between 23.0% to 28.0%.

Based on the exchange rates prevailing at October 31, 2020, SimCorp estimates reported revenue to be negatively impacted from currency fluctuations by around 1.0%. The impact from currency fluctuations on reported EBIT margin is expected to be negative by around 0.2%-points. In the previous reporting (Q2 2020), the currency impact on reported revenue was expected to be negative by around 1.3%, and EBIT margin was expected to be negative by around 0.4% points.

  • This announcement contains certain forward-looking statements and expectations in respect of the 2020 fi- nancial year. Such forward-looking statements are not guarantees of future performance, and involve risk and uncertainty, and actual performance may deviate materially from that expressed in such forward-looking state- ments due to a variety of factors. Readers are warned not to rely unduly on such forward-looking statements, which apply only as at the date of this announcement. The Group's revenue is expected to continue to be impacted by relatively few but large system orders, and such orders are expected to be won at relatively irregular intervals. The terms agreed in the individual license agreements will determine the impact on the order book and on license income for any specific financial reporting period. Accordingly, license revenue is likely to vary considerably from one quarter to the next. Unless required by law or corresponding obligations SimCorp A/S is under no duty and undertakes no obligation to update or revise any forward-looking statement after the distri- bution of this document, whether as a result of new information, future events or otherwise.

Page 19 of 28

Company Announcement

SimCorp reports revenue of EUR 310m and EBIT margin of 21% for the first nine months of 2020

Other information

Significant risk and uncertainty factors

SimCorp operates in a dynamic and complex business environment where performance relies heavily on the ongoing achievement of a number of success criteria. Pages 26-28 of SimCorp's Annual Report 2019 describe the most important general risk factors and the risk management measures utilized in everyday operations. Management believes that the description of these potential risks still pertains to the current situation.

In addition to the above, it has become evident that the Covid-19 pandemic, which has locked down most countries, like terror and war, poses a significant risk and uncertainty factor for SimCorp that has strategic, operational, as well as financial implications. Securing SimCorp employees' health and safety and ensuring that all processes related to SimCorp's products, sales, and services are operating as close as possible to normal during this period is a key priority for SimCorp. Due to the uncertainty of the situation, there is a risk that client decisions relating to sales processes will be postponed or delayed, and that implementation projects at our clients will be delayed or prolonged. Structured sales reviews, the ability to do remote demonstrations and implementations, as well as our standard platform initiative are in place to mitigate the risk of discontinuity in the daily operation of the business.

Shareholder information

Restricted stock units

In Q3 2020, 812 restricted stock units were granted to two employees related to sign-on incentives. The restricted stock units will vest after three years subject to continued employment.

In Q3 2020, 1,433 restricted stock units vested and were transferred to two employees.

359,454 restricted stock units are outstanding on September 30, 2020. The restricted stock units will be transferred in whole or in part between 2020 and 2024 to program participants still employed when the restricted stock units vest, some subject to performance conditions.

As part of the executive service agreement entered into with Michael Rosenvold, CFO, restricted stock units with a total market value of DKK 5m were granted the CFO on the condition that he made an investment in SimCorp shares with a total market value of DKK 2.5m and that the restricted stock units would vest 60% after three years' service, 20% after four years' service and the remaining 20% after 5 years' service. The allotment of the 60% restricted stock units equal to 7,173 shares was made with an original vesting date of 1 October 2020. The Board of Directors has decided to defer the vesting date to 12 November 2020, to enable Michael Rosenvold to sell shares after the release of the 9M 2020 financial results to cover his personal income tax liability.

352,281 restricted stock units are outstanding after the transfer on November 12, 2020.

Holding of treasury shares

The Company purchased 19,672 treasury shares in Q3 2020 at an average price of DKK 724.68 per share, totaling EUR 1.9m. In total, the Company purchased 112,654 treasury shares in 9M 2020 at

Page 20 of 28

Company Announcement

SimCorp reports revenue of EUR 310m and EBIT margin of 21% for the first nine months of 2020

an average price of DKK 660.78 per share, totaling EUR 10.0m. In comparison, the Company purchased 150,980 treasury shares at an average price of DKK 617.86 per share, totaling EUR 12.5m, in 9M 2019.

The EUR 10.0m share buyback "Safe Habour" program was completed on July 31, 2020.

On September 30, 2020, the Company's holding of treasury shares amounted to 856,710 treasury shares, equal to 2.1% of the Company's issued share capital.

The Company maintains its position as communicated earlier and does not plan to initiate a new "Safe Habour" program in 2020 due to the continued uncertainty caused by Covid-19.

Page 21 of 28

Company Announcement

SimCorp reports revenue of EUR 310m and EBIT margin of 21% for the first nine months of 2020

Signatures

The Board of Directors and the Executive Management Board have today considered and adopted the interim report for the period January 1 - September 30, 2020.

The interim report, which is unaudited and has not been reviewed by the Company's auditors is presented in accordance with IAS 34 "Interim financial reporting" as adopted by the EU and Danish disclosure requirements for interim reports for listed companies.

In our opinion, the interim financial statements give a true and fair view of the Group's assets, liabilities and financial position as of September 30, 2020 and of the profit of the Group's operations and cash flow for the period January 1 - September 30, 2020.

Besides what has been disclosed in the interim report, there are no significant changes to the Group's risks and uncertainties, as disclosed in the Annual Report 2019.

Furthermore, in our opinion the management's report gives a true and fair view of developments in the activities and financial position of the Group, the results for the period and of the Group's financial position in general, and outlines the significant risk and uncertainty factors that may affect the Group.

Copenhagen, November 12, 2020

Executive Management Board:

__________________

______________________

Klaus Holse

Michael Rosenvold

Chief Executive Officer

Chief Financial Officer

__________________

______________________

Georg Hetrodt

Christian Kromann

Chief Product Officer

Chief Operating Officer

Board of Directors:

__________________

______________________

___________________

Peter Schütze

Morten Hübbe

Hervé Couturier

Chairman

Vice Chairman

___________________

_____________________

___________________

Simon Jeffreys

Adam Warby

Joan A. Binstock

___________________

_____________________

___________________

Else Braathen

Vera Bergforth

Hugues Chabanis

Page 22 of 28

Company Announcement

SimCorp reports revenue of EUR 310m and EBIT margin of 21% for the first nine months of 2020

Consolidated income statement

2020

2019

2020

2019

2019

EUR '000

Q3

Q3

9M

9M

FY

Revenue

100,150

117,424

309,801

326,692

454,531

Cost of sales

39,079

40,756

122,726

119,719

167,141

Gross profit

61,071

76,668

187,075

206,973

287,390

Other operating income

278

219

821

422

533

Research and development costs

21,790

21,460

66,506

59,946

82,938

Sales and marketing costs

11,579

13,107

36,076

34,662

49,105

Administrative expenses

5,614

7,141

19,426

18,918

28,056

Operating profit (EBIT)

22,366

35,179

65,888

93,869

127,824

Share of profit after tax in associates

-13

-5

21

43

125

Financial income/expenses, net

-3,422

2,427

-4,703

1,818

-148

Profit before tax

18,931

37,601

61,206

95,730

127,801

Tax on the profit for the period

4,841

8,341

15,527

23,165

30,900

Profit for the period

14,090

29,260

45,679

72,565

96,901

EARNINGS PER SHARE

Earnings per share - EPS (EUR)

0.35

0.74

1.15

1.83

2.44

Diluted earnings per share - EPS-D (EUR)

0.35

0.73

1.14

1.80

2.42

Statement of comprehensive income

EUR '000

2020

2019

2020

2019

2019

Q3

Q3

9M

9M

FY

Profit for the period

14,090

29,260

45,679

72,565

96,901

Other comprehensive income

Items that will not be reclassified subsequently to the income statement:

Remeasurements of defined benefit plans

-

-

-

-

-1,473

Tax, remeasurement of defined benefit plans

-

-

-

-

323

Items that may be reclassified subsequently to the income statement, when specific

conditions are met:

Foreign currency translation differences for foreign operations

-907

1,232

-2,462

1,177

1,426

Other comprehensive income after tax

-907

1,232

-2,462

1,177

276

Total comprehensive income

13,183

30,492

43,217

73,742

97,177

Page 23 of 28

Company Announcement

SimCorp reports revenue of EUR 310m and EBIT margin of 21% for the first nine months of 2020

Consolidated balance sheet

EUR '000

Sept. 30

Sept. 30

Dec. 31

2020

2019

2019

ASSETS

Goodwill

61,326

60,718

61,178

Software

11,901

13,754

13,348

Client relationships

23,369

25,458

25,031

Total intangible assets

96,596

99,930

99,557

Leasehold

45,362

48,333

51,589

Technical equipment

1,185

1,731

1,506

Other equipment, fixtures, fittings and prepayments

2,886

2,167

2,555

Total property, plant, and equipment

49,433

52,231

55,650

Investments in associates

796

699

808

Deposits

2,031

2,084

2,095

Deferred tax

5,393

4,645

5,357

Other financial assets

404

-

-

Total other non-current assets

8,624

7,428

8,260

Total non-current assets

154,653

159,589

163,467

Receivables

79,974

76,246

81,804

Contract assets

150,638

133,498

151,774

Income tax receivables

1,106

1,330

2,341

Prepayments

8,819

7,499

6,675

Cash and cash equivalents

32,617

26,903

31,851

Total current assets

273,154

245,476

274,445

Total assets

427,807

405,065

437,912

LIABILITIES AND EQUITY

Share capital

5,441

5,441

5,441

Exchange adjustment reserve

-4,445

-2,232

-1,983

Retained earnings

232,568

200,538

186,643

Proposed dividend

-

-

39,919

Total equity

233,564

203,747

230,020

Lease liabilities

36,507

38,422

41,585

Deferred tax

25,716

26,258

25,931

Provisions

18,121

9,722

12,796

Total non-current liabilities

80,344

74,402

80,312

Revolving credit facility

-

20,000

20,000

Lease liabilities

9,136

9,303

10,063

Prepayments from clients

34,757

30,256

24,678

Trade payables

16,108

18,608

18,503

Other payables

44,089

39,686

48,922

Income tax payables

9,371

8,724

4,389

Provisions

438

339

1,025

Total current liabilities

113,899

126,916

127,580

Total liabilities

194,243

201,318

207,892

Total liabilities and equity

427,807

405,065

437,912

Page 24 of 28

Company Announcement

SimCorp reports revenue of EUR 310m and EBIT margin of 21% for the first nine months of 2020

Consolidated cash flow statement

2020

2019

2020

2019

2019

EUR '000

Q3

Q3

9M

9M

FY

Profit for the period

14,090

29,260

45,679

72,565

96,901

Depreciation

3,946

3,807

12,074

10,388

14,752

Financial income/expenses, net

3,422

-2,427

4,703

-1,818

148

Tax on the profit for the period

4,841

8,341

15,527

23,165

30,900

Share of profit after tax in associates

13

5

-21

-43

-125

Other non-cash items

-5,046

5,767

-6,664

3,926

598

Adjustment share based remuneration

2,006

1,923

9,170

8,134

10,243

Change in provisions

965

2,291

4,738

1,077

4,837

Changes in contract assets

-1,726

-21,016

1,136

-45,018

-63,492

Changes in working capital

-1,143

-1,978

2,132

12,787

11,496

Financial income received

88

8

100

125

135

Financial expenses paid

-134

-124

-324

-286

-342

Income tax paid

-1,047

-2,031

-8,459

-10,513

-23,546

Net cash from operating activities

20,275

23,826

79,791

74,489

82,505

Purchase of subsidiaries, net of cash acquired

-

-58,468

-

-58,468

-58,468

Purchase of property, plant, and equipment, net

-216

139

-1,916

-1,226

-1,722

Sale and purchase of financial assets, net

28

-117

-362

-72

-105

Dividends from associates

-

-

79

81

81

Net cash used in investing activities

-188

-58,446

-2,199

-59,685

-60,214

Dividends paid

-

-

-39,919

-35,898

-35,881

Purchase of treasury shares

-1,921

-3,267

-9,997

-12,494

-12,488

Repayment of lease liability

-2,368

-2,595

-7,365

-7,262

-9,880

Proceeds, credit facilities / loans

-23,482

20,000

-20,000

20,000

20,000

Net cash used in financing activities

-27,771

14,138

-77,281

-35,654

-38,249

Change in cash and cash equivalents

-7,684

-20,482

311

-20,850

-15,958

Cash and cash equivalents at beginning of period

39,596

47,551

31,851

47,500

47,500

Foreign exchange adjustment of cash and cash equivalents

705

-166

455

253

309

Cash and cash equivalents end of period

32,617

26,903

32,617

26,903

31,851

Page 25 of 28

Company Announcement

SimCorp reports revenue of EUR 310m and EBIT margin of 21% for the first nine months of 2020

Statement of changes in equity

Share

Exchange

Dividends

premium

Share

adjustment

Retained

for the

EUR '000

capital

reserve

earnings

year

Total

2020

Equity at January 1

5,441

-

-1,983

186,643

39,919

230,020

Net profit for the period

-

-

-

45,679

-

45,679

Total other comprehensive income

-

-

-2,462

-

-

-2,462

Total comprehensive income for the period

-

-

-2,462

45,679

-

43,217

Transactions with owners

Dividends paid to shareholders

-

-

-

40

-39,919

-39,879

Share-based payment

-

-

-

9,170

-

9,170

Tax, share-based payment

-

-

-

1,033

-

1,033

Purchase of treasury shares

-

-

-

-9,997

-

-9,997

Equity at September 30

5,441

-

-4,445

232,568

-

233,564

2019

Equity at January 1

5,441

9,963

-3,409

121,130

35,934

169,059

Reclassification

-

-9,963

-

9,963

-

-

Adjusted balance at January 1

5,441

-3,409

131,093

35,934

169,059

Net profit for the period

-

-

-

72,565

-

72,565

Total other comprehensive income

-

-

1,177

-

-

1,177

Total comprehensive income for the period

-

-

1,177

72,565

-

73,742

Transactions with owners

Dividends paid to shareholders

-

-

-

36

-35,934

-35,898

Share-based payment

-

-

-

8,211

-

8,211

Tax, share-based payment

-

-

-

1,127

-

1,127

Purchase of treasury shares

-

-

-

-12,494

-

-12,494

Equity at September 30

5,441

-

-2,232

200,538

-

203,747

Net profit for the period

-

-

-

24,336

-

24,336

Total other comprehensive income

-

-

249

-1,150

-

-901

Total comprehensive income for the period

-

-

249

23,186

-

23,435

Transactions with owners

Dividends paid to shareholders

-

-

-

17

-

17

Share-based payment

-

-

-

2,032

-

2,032

Tax, share-based payment

-

-

-

783

-

783

Purchase of treasury shares

-

-

-

6

-

6

Proposed dividends to shareholders

-

-

-

-39,919

39,919

-

Equity at December 31

5,441

0

-1,983

186,643

39,919

230,020

Page 26 of 28

Company Announcement

SimCorp reports revenue of EUR 310m and EBIT margin of 21% for the first nine months of 2020

Notes to the financial statements

Accounting policies

The interim report is presented in accordance with IAS 34 "Interim financial reporting" as adopted by the EU and Danish disclosure requirements for interim reports of listed companies.

The accounting policies applied are consistent with those of the Annual Report 2019 except for the changes described below. See the Annual Report 2019 for a comprehensive description of the accounting policies applied.

Change in accounting policies

Effective 1 January 2020, a number of new accounting standards and interpretations have been implemented which do not have any monetary effect on the SimCorp Group's result, assets, liabilities or equity.

Judgments and estimates

The preparation of interim reports requires management to make accounting judgments and estimates that affect the use of accounting policies and recognized assets, liabilities, income and ex- penses. Actual results may differ from these estimates.

The most significant estimates made by management when using the Group's accounting policies and the most significant judgment uncertainties attached hereto are the same for the preparation of the interim report as for the preparation of the Annual Report 2019.

Segment information

In 2020, the business activities and internal reporting for SimCorp Coric and SimCorp Gain have been incorporated within the Geographical Sales organization and are therefore no longer reported separately. Furthermore, the Market Units UK, Northern Europe and Middle East, Central Europe and Southern Europe have been merged to EMEA. The comparative information has been restated accordingly. Furthermore, amortization and allocations of assets resulting from purchase price allocation has been included under unallocated as these items are not part of internal reporting for the market units.

Page 27 of 28

Company Announcement

SimCorp reports revenue of EUR 310m and EBIT margin of 21% for the first nine months of 2020

Research

and de-

Elimina-

2020

Asia and

North

SimCorp

velop-

Corporate

tion/ Not

EUR'000

EMEA

Australia

America

Sofia

ment

functions

allocated

Group

July 1 - September 30, 2020

External revenue

60,952

8,327

27,393

3,150

328

-

-

100,150

Revenue between segments

6,219

652

1,046

230

38,914

16,475

-63,536

-

Total segment revenue

67,171

8,979

28,439

3,380

39,242

16,475

-63,536

100,150

EBITDA

4,755

855

1,888

662

18,429

-1,335

1,058

26,312

Depreciation and amortization

231

163

322

410

180

1,582

1,058

3,946

Segment operating profit (EBIT)

4,524

692

1,566

252

18,249

-2,917

-

22,366

Financial items, net

-3,435

Profit for the period before tax

18,931

January 1 - September 30, 2020

External revenue

203,428

21,781

68,552

14,941

1,099

-

-

309,801

Revenue between segments

18,405

1,494

3,148

853

117,242

37,010

-178,152

-

Total segment revenue

221,833

23,275

71,700

15,794

118,341

37,010

-178,152

309,801

EBITDA

19,609

2,176

4,690

6,949

51,892

-9,137

1,783

77,962

Depreciation and amortization

2,247

516

1,003

1,229

544

4,752

1,783

12,074

Segment operating profit (EBIT)

17,362

1,660

3,687

5,720

51,348

-13,889

-

65,888

Financial items, net

-4,682

Profit for the period before tax

61,206

Total assets

140,726

43,589

89,356

45,268

16,275

17,937

74,656

427,807

Research

and de-

Elimina-

2019

Asia and

North

SimCorp

velop-

Corporate

tion/ Not

EUR'000

EMEA

Australia

America

Sofia

ment

functions

allocated

Group

July 1 - September 30, 2019

External revenue

66,932

23,141

22,443

4,552

356

-

-

117,424

Revenue between segments

8,746

406

1,158

186

46,890

15,069

-72,454

-

Total segment revenue

75,678

23,547

23,601

4,738

47,246

15,069

-72,454

117,424

EBITDA

7,239

2,327

1,537

2,008

25,862

-453

466

38,986

Depreciation and amortization

765

169

355

404

197

1,451

466

3,807

Segment operating profit (EBIT)

6,474

2,158

1,182

1,604

25,665

-1,904

-

35,179

Financial items, net

2,422

Profit for the period before tax

37,601

January 1 - September 30, 2019

External revenue

200,004

44,676

65,889

15,248

875

-

-

326,692

Revenue between segments

25,799

560

3,107

619

129,206

28,862

-188,152

-

Total segment revenue

225,803

45,236

68,996

15,867

130,081

28,862

-188,152

326,692

EBITDA

22,708

3,228

5,738

6,935

67,203

-2,240

685

104,257

Depreciation and amortization

2,444

396

1,061

1,212

541

4,049

685

10,388

Segment operating profit (EBIT)

20,264

2,832

4,677

5,723

66,662

-6,289

-

93,869

Financial items, net

1,861

Profit for the period before tax

95,730

Total assets

133,743

45,594

78,758

48,969

17,031

16,605

64,365

405,065

Revenue disclosures are based on SimCorp's market units and development activities while asset allocation is based on the physical location of the assets. Unallocated assets relate to non-current headquarter assets, cash, taxes and investments in associates.

Contingent liabilities

No material changes have occurred to the contingent liabilities referred to in the Annual Report 2019.

Events after September 30, 2020

No significant events have occurred after the balance sheet date other than described separately in this interim report.

Page 28 of 28

Disclaimer

SimCorp A/S published this content on 12 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 November 2020 09:58:03 UTC


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Financials
Sales 2020 463 M 562 M 562 M
Net income 2020 90,6 M 110 M 110 M
Net cash 2020 20,1 M 24,4 M 24,4 M
P/E ratio 2020 49,9x
Yield 2020 0,85%
Capitalization 4 498 M 5 462 M 5 459 M
EV / Sales 2020 9,66x
EV / Sales 2021 8,75x
Nbr of Employees 1 906
Free-Float 97,5%
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Mean consensus HOLD
Number of Analysts 7
Average target price 108,12 €
Last Close Price 113,47 €
Spread / Highest target 27,4%
Spread / Average Target -4,72%
Spread / Lowest Target -40,8%
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Managers and Directors
NameTitle
Klaus Holse Chief Executive Officer
Peter Schütze Chairman
Christian Peter Kromann Chief Operating Officer
Michael Rosenvold Chief Financial Officer
Hervé Pierre André Couturier Independent Director
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