EQS-News: SAP Presents Quarterly Report for the First Nine Months of 2022

SAP Presents Quarterly Report for the First Nine Months of 2022

• Strong first nine months of 2022 with € 124.9 million (+9% like-for-like*)
• EBIT of € 1.9 million slightly higher than in the previous year (9M 2021: € 1.8 million)
• Dynamic development of order entry in partner business (around +26%)
• Forecast for 2022 fiscal year updated

Heidelberg, October 27, 2022 – SNP Schneider-Neureither & Partner SE (ISIN: DE0007203705), a leading global provider of solutions for digital transformation processes and software-based data migrations, has today published its report for the first nine months of 2022. Sales reached € 124.9 million and thus increased by € 3.2 million (9M 2021: € 121.7 million). In like-for-like terms*, sales increased more significantly, by around 9%. All regions contributed to this growth. Earnings before interest and taxes (EBIT) reached € 1.9 million and were thus slightly higher than the previous year’s level of € 1.8 million. The EBIT margin was 1.5%.

“We continue to be on a growth course with strong partner business. Despite the difficult conditions in general, our order situation is still good overall. This confirms our excellent market position, which is centered on our CrystalBridge software platform,” says Michael Eberhardt, CEO of SNP SE. “We are well-positioned for the further development of our company with our ELEVATE strategy program. Transformation processes and data management remain essential to our company’s long-term success. We will thus continue to forge ahead on our medium-term path of growth, and we expect an additional growth spurt in the fourth quarter of 2022.”

In the third quarter of 2022, SNP continued implementation of its ELEVATE growth strategy, which was initiated in the first half of the year. This provides for an increase in the software and partner business in particular. Revenue in the software business (incl. software revenue and EXA) of € 37.0 million was slightly higher than in the previous year. However, there were more partner contracts with software quotas that immediately impacted revenue and earnings in the previous year, which resulted in a roughly € 4 million reduction in revenue in the 2022 fiscal year. Adjusted for these “up-front” contracts, the Software business segment grew by around 12%. Revenue achieved through partner companies increased significantly (around 56%) and reached a volume of around € 35.2 million (2021: € 22.6 million); this represents an overall revenue share of approximately 28% (2021: 19%).

The current uncertain economic environment continues to make itself felt in order entry. Customers are placing orders at shorter notice and as individual projects. Even so, thanks to SNP’s good positioning on the market, it won seven major orders with a volume of at least € 1 million in the third quarter. The overall order entry volume is 1% higher year-over-year and amounts to € 40.1 million (Q3 2021: € 39.7 million). Order entry in the first nine months of 2022 totaled € 122.7 million, around 7 % below the figure for the same period in the previous year (9M 2022: € 131.6 million). In like-for-like terms*, however, order entry increased more significantly, by around 7%. In addition, order entry in the strategically important partner business rose by around 26% to € 39.5 million.

Despite the challenging market environment, the management expects to see stronger growth momentum in the fourth quarter, as in recent years. Against the backdrop of the challenging environment and the current order situation, SNP has updated the annual forecast for 2022.

For 2022 as a whole, SNP expects the following for the SNP Group:

• Order entry will grow by a mid-single-digit percentage compared with the previous-year figure of around € 176 million adjusted for changes in the scope of consolidation (previous forecast: significantly above the unadjusted previous-year figure of € 192 million).
• Revenue will be approximately € 175 million (2021: € 167.0 million; 2021 like-for-like*: approximately € 160 million; previous forecast: € 170 million to € 190 million).
• EBIT will be around € 10.5 million (previous forecast: € 10.5 million to € 13 million). The EBITDA figure will continue to increase more strongly in absolute terms than the EBIT figure. This is mainly due to the amortization of intangible assets added as a result of the acquisitions made in 2021 (PPA depreciation/amortization).

Please see the Q3 2022 quarterly report for further information: https://www.snpgroup.com/en/financial-publications.

* SNP SE entered into a large number of M&A transactions in the 2021 fiscal year: For instance, it acquired 74.9% of the shares in EXA AG effective March 1, 2021, and 100% of the shares in Datavard AG effective August 1, 2021. As of October 1, 2021, SNP sold 51% of the shares in SNP Poland. In like-for-like terms, the previous year’s figures are adjusted to the structure of the reporting period for better comparability.

About SNP

SNP is a world-leading provider of software for managing complex digital transformation processes. Instead of traditional IT consulting in the ERP environment, SNP offers an automated approach using specially developed software: The data transformation platform CrystalBridge® and the SNP BLUEFIELDTM approach allow companies to restructure and modernize their IT landscapes much more quickly as well as migrate to new systems or cloud environments more securely. This gives customers clear qualitative advantages while at the same time reducing their time and costs.

The SNP Group has around 1,300 employees worldwide. The company is headquartered in Heidelberg, Germany, and generated revenues of around EUR 167 million in the 2021 fiscal year. It serves multinational companies in all industries. SNP was established in 1994, went public in 2000, and has been listed in the Prime Standard segment of the Frankfurt Stock Exchange since August 2014 (ISIN DE0007203705). Since 2017, the company has been trading as a European company (Societas Europaea/SE).

More information is available at www.snpgroup.com

Contact person at SNP

Marcel Wiskow
Director Investor Relations
Phone +49 6221 6425-637
Email: [email protected]