SNP Schneider Neureither & Partner : Investor Presentation Q3 2023

SNP Schneider-Neureither & Partner SE

Analyst & Investor Call

Q3 2023 Results

October 26, 2023

Jens Amail, CEO

Andreas Röderer, CFO

Agenda

Overview: 9M Results

Detailed Financials

Q&As

© 2023 SNP - DATA. TRANSFORMATION. EXPERIENCE.

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Key Results - 9M 2023

SNP stays on its growth path after best Q3 results ever: At € 169.6m, order entry across the Group was up roughly 38% over previous year. Group revenue rose by 20% to € 149.6m in 9M 2023 YoY.

Above average growth in high margin Software business: High market acceptance of Software Platform CrystalBridge leads to order entry increase by 40% to € 50.4m after nine months (+62% to € 20.8m Q3 YoY). Software revenue up by 31% to € 47.7m in 9M 2023.

Significantly increased earnings and stronger profitability: EBIT marked €8.3m with an EBIT margin improvement by 4.0pp to 5.5% in 9M 2023. Operating cashflow significantly went up by € 11.3m to € -1.6m in the same period.

All strategic focus areas contribute to positive corporate development: (1) S/4: Order entry up by 114% to € 85.0 in 9M 2023;

1. partner business: Order entry (+61%) and revenue (+32%) in 9M 2023; (3) internationalization: Major projects with well-known customers in all regions (38 deals >€ 1m order entry in 9M 2023).

Guidance raised for 2023: Order entry is expected to reach € 220m to € 240m, revenue to be around the upper end of the range between € 190m and € 200m; EBIT is expected to reach, or even be slightly exceed, the upper end of the range of € 5m to €10m.

© 2023 SNP - DATA. TRANSFORMATION. EXPERIENCE.

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Q3 2023 - Key Figures

Order EntryGroup RevenueEBIT

€ 60.2m	€ 54.1m	€ 4.8m
+50%	+30%	>+100%

Service (incl. EXA)

Software (incl. EXA)

Partner

Order Entry

€ 39.3m

+45%

Revenue	Order Entry
€ 35.7m	€ 20.9m
+25%	+62%

Revenue	Order Entry
€ 18.4m	€ 22.1m
+40%	+97%

Revenue

€ 16.7m

+37%

© 2023 SNP I DATA. TRANSFORMATION. EXPERIENCE.

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9M 2023 - Key Figures

Order EntryGroup RevenueEBIT

€ 169.6m	€ 149.6m	€ 8.3m
+38%	+20%	>+100%

Service (incl. EXA)

Software (incl. EXA)

Partner

Order Entry

€ 118.2m

+37%

Revenue	Order Entry
€ 101.1m	€ 51.4m
+15%	+40%

Revenue	Order Entry
€ 48.6m	€ 62.9m
+31%	+61%

Revenue

€ 46.6m

+32%

© 2023 SNP I DATA. TRANSFORMATION. EXPERIENCE.

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Partner Business

Order Entry Partner

(in €m)

Revenue Partner

(in €)

	Expanded partnership with
	IBM to include:
	−	Integrated delivery
		factories through a global
		Center of Excellence

+97%

	22.1
11.2
Q3 2022	Q3 2023

+61%
	62.9
39.2
9M 2022	9M 2023

+37%

12.2	16.7
Q3 2022	Q3 2023

+32%			− Generative AI capabilities
						enhancing efficiency in
						migration efforts
						 Extended partnership with EY:
				46.6		Integration of CrystalBridge
						into EY's migration
						methodology.
35.2
						 New global partnership with
						smartShift to address the
						market of code remediation.
						 Stronger growth rates in order
						entry than last year.
9M 2022	9M 2023

© 2023 SNP I DATA. TRANSFORMATION. EXPERIENCE.

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Order Entry by Deal Bands

Q3/2022

Q3/2023

9M/2022

9M/2023

Number of

Deals

	Deals in the band of
	€ >1m are the key driver
	of growth in order entry.
	Trend towards large-
	volume, strategic and

					Number of	39	7
					Deals
				7	2
			Number of	40		51	31
			Deals	27
	Number of	18	4
	Deals	8		20	29	29	42
		6
13	9
13	17
8	12	38	155	34
		145
16	61
13	57	19		16
6		6
€ 40.1m		€ 60.2m		€ 122.7m		€ 169.6m
		(+50%)				(+38%)

Deal size

> 3m €

1m - 3m €

500k - 1m €

100k - 500k €

< 100k €

long-term contracting.

© 2023 SNP I DATA. TRANSFORMATION. EXPERIENCE.

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Order Entry by Region

Q3/2022 Q3/2023

(in €m)

	3.4
	3.0
	12.6
2.6	8.9
5.5
5.3
5.3
	32.2
21.4
€ 40.1m	€ 60.2m
	(+50%)

9M/2022	9M/2023	 Strongest percentage growth in
the regions UKI (+147%),
(in €m)		USA (+131%) and LATAM
		(+61%) in 9M.

		14.2		 JAPAC: Q3 was a quarter
		10.0			of consolidation; strong
				performance in Southeast
		27.3
UKI	5.8	UKI		Asia
JAPAC				Order entry in relation to SAP
13.0	29.9	JAPAC
			S/4HANA projects: +114% to
USA	13.4	USA
		€ 85.0m (9M 2022: € 39.7m).
LATAM	18.6		LATAM
		SAP S/4HANA projects account
CEU			CEU
			for approx. 50% of the total
		88.1			order entry (9M 2022: 32%).
	71.9
	€ 122.7m	€ 169.6m
		(+38%)

© 2023 SNP I DATA. TRANSFORMATION. EXPERIENCE.

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Reconciliation EBIT - Q3

EBIT

(in €m)

+12.3

0.1

Q3 2022

Revenue

+0.2

-4.6

COGS Personnel expenses

-2.5

Other

OPEX

-2.2

-0.8

FX

4.8

Q3 2023

• Personnel expenses and OPEX partially off-setting the positive impact of revenue growth.
• Revenue: € +5.1m by Software business segment (+39%); Service business segment:

• • +7.5m (+28%); EXA segment:
  • -0.2m(-5%).
• Personnel expenses: (1) higher number of employees and (2) salary increases.
• FX: Positive impact both in Q3 2022 and 2023 (but less positive this year).

© 2023 SNP I DATA. TRANSFORMATION. EXPERIENCE.

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Reconciliation EBIT - 9M

EBIT

(in €m)

 Revenue:

€ +11.2m (+31%) by

Software business

segment;

+24.6

-0.7

-10.8

-1.9

Service business

segment:

€ +14.2m (+17%);

EXA segment:

€ -0.7m(-10%).

 Personnel expenses:

(1) higher number of

-5.0

8.3

employees, (2) salary

increases in 2022 and

(3) inflation adjustment

payment (in January

2023).

1.9

9M 2022

Revenue COGS Personnel OPEX expenses

FX

9M 2023

 FX: Weak US dollar weighs

on earnings compared to

strong US dollar effect in

9M 2022.

© 2023 SNP I DATA. TRANSFORMATION. EXPERIENCE.

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