INTERIM STATEMENT

Q3 2021

SNP I The Data Transformation Company

2

INDICATORS

as of September 30, 2021

in € million

9M 2021

9M 2020

Q3 2021

Q3 2020

Order entry

131.6

139.7

39.7

46.8

Revenue

121.7

106.3

46.0

37.6

EBITDA

8.4

6.1

5.5

7.0

EBIT

1.8

0.3

2.9

5.0

Profit or loss for the period

-0.6

-0.6

1.5

3.7

Earnings per share (€)

-0.05

-0.05

0.22

0.57

Operating cash flow

-9.5

0.9

Cash and cash equivalents

30.2

30.2

Employees as of September 30

1,762

1,468

INTERIM STATEMENT I Q3 2021

3

BUSINESS PERFORMANCE OF

SNP SCHNEIDER-NEUREITHER & PARTNER SE

FOR THE PERIOD FROM JANUARY 1 TO SEPTEMBER 30, 2021

SIGNIFICANT EVENTS IN THE THIRD

QUARTER OF 2021

SNP Acquires SAP Data Specialist

With economic effect as of August 1, 2021, SNP SE has acquired 100% of the shares in Datavard AG. This software and consulting firm specializes in transformations and data management in SAP landscapes and realized an overall revenue volume of € 17.6 million and an EBIT figure of € 1.0 million in the 2020 fiscal year. It has around 170 employees. As well as its headquarters in Heidelberg, Datavard has two locations in Slovakia as well as a location in Switzerland. Datavard also has a presence in the USA and in Singapore.

A cash component of around € 20 million and the issuance of 173,333 new shares by way of a capital increase against a contribution in kind were agreed as consideration for the purchase of all of the shares in Datavard AG. By means of this capital increase against a contribution in kind, the company's share capital will be increased by

  • 173,333 from € 7,212,447 to € 7,385,780 through the issuance of 173,333 new no-par-value bearer shares. An independent valuation has confirmed the appropriate- ness of the overall purchase price. The new shares will be indirectly issued to Gregor Stöckler and two further shareholders of Datavard AG, all three of whom will re- main with the firm following the transaction. The shares issued are subject to a 36-monthlock-up period.

SNP Completes Sale of its Polish Subsidiary to the All for One Group

With economic effect as of October 1, 2021, SNP SE has sold 51% of the shares in SNP Poland Sp. z o.o. to All for One Group SE. For the shares remaining at SNP, the parties have agreed a reciprocal call and put option for the year 2023; in the event that this option is not exer- cised, the transfer will occur in 2024.

FINANCIAL POSITION AND

FINANCIAL PERFORMANCE

Revenue Performance

In the first nine months of the current fiscal year SNP has increased its revenue by 14.5% year-over-year to € 121.7 million (9M 2020: € 106.3 million). With 20.0% revenue growth in the first nine months of 2021 to € 85.0 million (9M 2020: € 70.8 million), the Services business segment was the main growth driver. This is largely attributable to SNP's acquisitions of EXA AG and Datavard AG. In organic terms, revenue in the Services business segment has increased by 8.4%.

Revenue in the Software business segment increased slightly: Software revenue in the amount of € 36.7 million was registered in the first nine months of 2021 (9M 2020: € 35.5 million). This represents a growth rate of 3.5%. The lower rate of growth relative to the overall

revenue volume mainly reflects a strong prior-year period in which various partnership agreements were signed with multi-year software quotas impacting revenue and earnings.

The acquisition of EXA AG contributed € 6.9 million to overall revenue since the initial consolidation as at March 1, 2021. The acquisition of EXA AG contributed

  • 2.5 million to overall revenue since the initial consolida- tion as at August 1, 2021. Adjusted for acquisitions, Group revenue increased by € 6.1 million, or approximately 6%.

OVERALL REVENUE

in € million

2021

2020

9M

121.7

106.3

+15%

Services

85.0

70.8

+20%

Software

36.7

35.5

+3%

Q3

46.0

37.6

+22%

Services

32.9

21.2

+55%

Software

13.1

16.5

-21%

4

Revenue Distribution by Region

The following tables show the distribution and development of external revenue by region:

REVENUE BY REGION

in € million

9M 2021

9M 2020

CEU1

64.6

57.7

+12%

EEMEA2

19.5

15.4

+27%

Latam3

15.4

11.6

+33%

USA

9.9

11.6

-14%

JAPAC4

7.1

4.2

+68%

UKI5

5.2

5.8

-11%

in € million

Q3 2021

Q3 2020

CEU1

24.4

23.0

+6%

EEMEA2

6.6

5.1

+29%

Latam3

5.6

4.0

+42%

USA

4.3

3.1

+37%

JAPAC4

3.3

1.1

+197%

UKI5

1.8

1.3

+39%

  1. Central Europe
  2. Eastern Europe, Middle East, Africa
  3. Latin America
  4. Asia-PacificJapan
  5. United Kingdom, Ireland

Revenue Distribution by Business Segment

In the first nine months of the year, the Services business segment provided € 85.0 million (previous year:

  • 70.8 million) of Group revenue. Revenue thus increased by € 14.2 million, or around 20%, year-over-year. This corresponds to a share of around 70% (previous year: 67%) of the overall revenue volume of € 121.7 million. This significant rise is largely attributable to the acquisi- tions of EXA AG and Datavard AG, which contributed
  • 8.2 million to service revenue.

EXA AG's revenue is mainly initially allocated to the Services business segment. This reflects EXA AG's highly service-intensive software portfolio. Nonethe- less, SNP is in the process of reviewing its final business segment status. Since its initial consolidation on March 1, 2021, EXA AG has achieved revenue in the amount of € 6.9 million and an operating result (EBIT) in the amount of € 1.9 million; this corresponds to an EBIT margin of 28.4% in the reporting period.

SERVICE REVENUE

in € million

2021

2020

9M

85.0

70.8

+20%

Q3

32.9

21.2

+56%

The Software business segment (including maintenance and cloud) generated revenue of € 36.7 million (previous year: € 35.5 million) in the first nine months of the year. This corresponds to a slight increase of approximately 3% year-over-year.The € 1.1 million increase is mainly attributable to the two acquisitions during the current year. Revenue generated with partners amounted to € 12.1 million (previous year: € 14.9 million).

While in the first six months of the year revenue growth had amounted to € 4.6 million or +24.2%, software revenue declined in the third quarter (€ -3.4 million or -20.5%). This decrease is primarily attributable to a particularly strong same quarter in the previous year, in which the signing of a multi-year partnership agreement with a high software quota impacting revenue and earnings was a key event.

Within the Software business segment, licensing fees have decreased by € 2.7 million, or -13.8%, to € 20.9 million (previous year: € 24.3 million). On the other hand, software support revenue has increased signifi- cantly, by € 3.7 million, or 47.4%, to € 11.5 million (pre- vious year: € 7.8 million). Cloud and software-as-a-service revenue improved by € 0.9 million in the reporting period to € 4.3 million (previous year: € 3.4 million).

Revenue with high-margin SNP in-house products amounted to € 29.2 million in the first nine months of the current fiscal year, compared to € 29.9 million in the previous year. In the same period, revenue in the amount of € 7.5 million (previous year: € 5.5 million) was registered with third-party products, which corresponds to an increase of 36.0%.

REVENUE INTHE SOFTWARE BUSINESS SEGMENT

in € million

2021

2020

9M

36.7

35.5

+3%

License

20.9

24.3

-14%

Support

11.5

7.8

+47%

Cloud*/SaaS

4.3

3.4

+27%

Q3

13.1

16.5

-20%

License

7.2

12.5

-42%

Support

4.4

2.8

+58%

Cloud*/SaaS

1.5

1.2

+26%

  • Unlike in the previous year, cloud license revenue has been combined with SaaS revenue. The previous year has been adjusted accordingly.

Order Backlog and Order Entry

Order entry as of September 30, 2021 totaled € 131.6 million, which was 5.8% lower than the comparable figure for the previous year (previous year: € 139.7 mil-

lion). This includes € 7.7 million from the acquisitions of EXA AG and Datavard AG. In organic terms, the order entry volume thus declined by -11.3%. This decrease has mainly resulted due to a partnership agreement concluded in the previous year in the CEU region as well as a weaker order entry volume in the UKI region. On the other hand, the JAPAC, EEMEA and USA regions in particular achieved significant growth.

The Software business segment accounts for € 43.6 million, or approximately 33%, of the order entry volume (previous year: € 57.3 million, or approximately 41%). This corresponds to a decrease of around 24% and has resulted from a strong same period in the previous year, in which various partnership agreements with multi-yearsoftware quotas were concluded. The acquisitions of EXA AG and Datavard AG contributed

  • 2.0 million to the order entry volume in the Software business segment.
  • 88.0 million, or approximately 67%, of the order entry volume is attributable to the Services business seg- ment (previous year: € 82.4 million or approximately 59%), which corresponds to an increase of 7%. This in- cludes € 5.7 million from the acquisitions of EXA AG and Datavard AG.

INTERIM STATEMENT I Q3 2021

5

in € million

9M 2021

9M 2020

Order entry

131.6

139.7

-6%

Services

88.0

82.4

+7%

Software

43.6

57.3

-24%

Order backlog

135.5

98.2

+38%

Services

79.6

67.2

+18%

Software

55.9

31.0

+80%

in € million

Q3 2021

Q3 2020

Order entry

39.7

46.8

-15%

Services

28.9

18.7

+55%

Software

10.9

28.1

-61%

The order backlog amounted to € 135.5 million as of September 30, 2021, compared to € 110.8 million as of December 31, 2020. Of this amount, the acquisitions of EXA AG and Datavard AG account for a total volume of € 12.3 million.

Earnings Position

Due to the correction of an error that was discussed in detail in the consolidated financial statements for the 2020 fiscal year, the originally reported figures are presented below together with the adjusted figures for 2020.

This is an excerpt of the original content. To continue reading it, access the original document here.

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Disclaimer

SNP Schneider-Neureither & Partner SE published this content on 28 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 October 2021 06:50:06 UTC.