EQS-Adhoc : SoftwareONE delivers solid results -3-

Consequently, and based on the assumption of no further material deterioration in the environment due to Covid-19, SoftwareONE's guidance for 2021 is as follows: . Gross profit growth above 10% for the group in constant currency^[7]; . Adjusted EBITDA margin of approximately 30%; . Dividend pay-out ratio of 30-50% of adjusted profit for the year.

By business line, Solutions & Services is expected to continue to demonstrate strong momentum in 2021, with the rate of gross profit growth materially exceeding that of Software & Cloud. Furthermore, overall growth for the group is expected to accelerate during the course of the year, as the effects of ongoing strategic initiatives and investments come through.

Beyond 2021, SoftwareONE expects a further acceleration in gross profit growth to the 'mid-teens' in constant currency, with EBITDA growth in excess of gross profit growth in the mid-term.

Supported by a strong balance sheet and cash flow generation, SoftwareONE will continue to invest to drive long-term profitable growth.

RESULTS OVERVIEW

Profit & loss summary

                                                   IFRS reported                Adjusted 
CHFm (unless otherwise indicated)           2020^[8]      2019    2020^1      2019     % ?  % ? at CCY 
Revenue from Software & Cloud                7,593.3   7,313.9   7,593.3   7,544.3    0.6%        6.4% 
Cost of software purchased                 (7,073.9) (6,773.4) (7,073.9) (6,982.4)    1.3%           - 
Gross profit from Software & Cloud             519.5     540.5     519.5     561.9  (7.5)%      (1.9)% 
Revenue from Solutions & Services              312.9     296.9     312.9     315.6  (0.9)%        5.9% 
Third party service delivery costs           (102.8)   (123.1)   (102.8)   (135.3) (24.0)%           - 
Gross profit from Solutions & Services         210.1     173.8     210.1     180.4   16.5%       23.9% 
Gross profit total                             729.6     714.3     729.6     742.2  (1.7)%        4.4% 
Operating expenses                           (541.6)   (544.0)   (506.5)   (518.7)  (2.3)%        4.0% 
EBITDA                                         188.0     170.3     223.1     223.6  (0.2)%        5.1% 
Depreciation,amortisation & impairment^[9]    (55.2)    (51.3)    (55.2)    (52.3)    5.5%           - 
EBIT                                           132.8     119.0     167.9     171.3  (2.0)%           - 
Net financial items                             81.0      35.3     (2.0)     (4.7) (57.3)%           - 
Earnings before tax                            213.8     154.4     165.9     166.6  (0.4)%           - 
Income tax expense                            (37.0)    (29.3)    (40.2)    (32.4)   24.1%           - 
Profit for the period                          176.8     125.0     125.7     134.2  (6.3)%           - 
 
EBITDA margin (%)                              25.8%     23.8%     30.6%     30.1%   0.5pp           - 
EPS (diluted)                                   1.14      0.82      0.81      0.88  (7.4)%           - 

Adjustments summary

                                                             2020                       2019 Adjustments 
CHFm (unless otherwise indicated)                      Adjustments^[10]     Adding Comparex^[11]    Other^[10]  Total 
Revenue from Software & Cloud                                             -                 230.4        -      230.4 
Cost of software purchased                                                -               (209.0)        -    (209.0) 
Gross profit from Software & Cloud                                        -                  21.4        -       21.4 
Revenue from Solutions & Services                                         -                  18.7        -       18.7 
Third party service delivery costs                                        -                (12.1)        -     (12.1) 
Gross profit from Solutions & Services                                    -                   6.5        -        6.5 
Gross profit total                                                        -                  27.9        -       27.9 
Operating expenses                                                     35.1                (21.9)     47.2       25.4 
EBITDA                                                                 35.1                   6.1     47.2       53.3 
Depreciation,amortisation & impairment                                    -                 (1.0)        -      (1.0) 
EBIT                                                                   35.1                   5.1     47.2       52.3 
Net financial items                                                  (83.0)                 (1.1)   (38.9)     (40.1) 
Earnings before tax                                                  (47.9)                   3.9      8.3       12.2 
Income tax expense                                                    (3.1)                   0.3    (3.3)      (3.0) 
Profit for the period                                                (51.0)                   4.2      5.0        9.2 

Reconciliation - IFRS reported to Adjusted profit

 
CHFm (unless otherwise indicated)                       2020   2019 
IFRS reported profit for the period                    176.8  125.0 
Proforma adjustments for Comparex acquisition              -    4.2 
Share-based compensation                                24.2   21.4 
IPO, integration and M&A and earn-out expenses          10.9   25.9 
Total operating expense adjustments                     35.1   47.2 
Depreciation / (appreciation) of Crayon shareholding  (83.0) (38.9) 
Tax impact of adjustments                              (3.1)  (3.3) 
Adjusted profit for the period                         125.7  134.2 

Source: Management view

Alternative Performance Measures

Please see the 2020 Annual Report for a definition of Alternative Performance Measures (page 36 of the PDF version) used in this media release.

2020 RESULTS DOCUMENTS

The 2020 results documents can be found on SoftwareONE's website in the Results Center.

CALL FOR INVESTORS, ANALYSTS AND THE MEDIA

An investor, analyst and media audio webcast with Dieter Schlosser, CEO, Hans Grüter, CFO and Alex Alexandrov, COO will be held today at 9.00 CET and may be joined via the link audio webcast.

To actively participate in the Q&A session, please join via telephone instead:

Switzerland: [phone]

Germany: [phone]

UK: [phone]

US: [phone]

Other international numbers are available here. Enter the PIN: 53027264# and join no-audio webcast to view the slides. Please join 10-15 minutes before the webcast is due to start.

The webcast will be archieved and a digital playback will be available approximately one hour after the event in the Results Center.

CORPORATE CALENDAR

2020 Annual General Meeting (AGM) 20 May 2021

2021 Half-year results & Half-year report 26 August 2021

2021 Full-year results & Annual report 3 March 2022

CONTACT

Patrick Zuppiger, Media Relations Tel. [phone], [e-mail]

Anna Engvall, Investor Relations Tel. [phone], [e-mail]

ABOUT SOFTWAREONE

SoftwareONE is a leading global provider of end-to-end software and cloud technology solutions, headquartered in Switzerland. With an IP and technology-driven services portfolio, it enables companies to holistically develop and implement their commercial, technology and digital transformation strategies. This is achieved by modernizing applications and migrate critical workloads on public clouds, while simultaneously managing and optimizing the related software and cloud assets and licensing. SoftwareONE's offerings are connected by PyraCloud, its proprietary digital platform, which provides customers with data-driven, actionable intelligence. With around 7,700 employees and sales and service delivery capabilities in 90 countries, SoftwareONE provides around 65,000 business customers with software and cloud solutions from over 7,500 publishers. SoftwareONE's shares (SWON) are listed on SIX Swiss Exchange. For more information, please visit SoftwareONE.com.

SoftwareONE Holding AG, Riedenmatt 4, CH-6370 Stans

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING AND NON-IFRS INFORMATION

This media release may contain certain forward-looking statements relating to SoftwareONE Holding AG (the 'Company') and each of its subsidiaries and affiliates (jointly referred to as 'SoftwareONE' or the 'group') and its future business, development and economic performance. Such statements may be subject to a number of risks, uncertainties and other important factors, such as but not limited to force majeure, competitive pressures, legislative and regulatory developments, global, macroeconomic and political trends, the group's ability to attract and retain the employees that are necessary to generate revenues and to manage its businesses, fluctuations in currency exchange rates and general financial market conditions, changes in accounting standards or policies, delay or inability in obtaining approvals from authorities, technical developments, litigation or adverse publicity and news coverage, each of which could cause actual development and results to differ materially from the statements made in this media release. SoftwareONE assumes no obligation to update or alter forward-looking statements whether as a result of new information, future events or otherwise.

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