Investment Case

• Our business model is aligned to providing ongoing and integrated support to companies and to enhancing their ability to compete in a digital world.
• We orchestrate all aspects of »competitive strength« – strategy, processes, data, people and systems – and, in doing so, make a major contribution to the success of our customers.
• Very good levels of customer satisfaction and loyalty enable us to generate high recurring revenues, which drive economies of scale, profitability and cash flow. At the same time, they improve our ability to plan our future business development.

• Our integrated business model is not only seemingly unique – it is also proving to be robust. The large proportion of recurring revenues generates sustainable cash inflows. Together, the two allow us to pursue a dividend policy that strives for continuity.
• We have paid a dividend every year since 2011/12 (15 eurocents per share). Since 2020/21, we distributed EUR 1.45 per share. Our distribution quota relative to Group earnings after tax is in the region of around 40% to around 50%.
• We plan to continue our sustainable dividend policy in the future.

We provide our customers with comprehensive support on their journey to becoming smart and intelligent companies and, in doing so, strengthen their ability to compete. In addition to healthy organic growth, we also successfully strengthen our Group with strategic acquisitions and the integration of the same.

• We focus on key industries in the German economy in both the midmarket and the larger midmarket.
• Analysts praise both our good »portfolio attractiveness« and »competitive strength«.
• We act as leader in our target markets. We are growing at a faster pace than the market as a whole and are increasing our market shares.
• We orchestrate »best in class« business solutions from the market leaders – SAP, Microsoft and IBM – for our base of more than 3,000 customers.
• We are the number 1 in the SAP midmarket.
• Our innovative strength gives us a clear head start over our competitors and assures our future growth.
• The midmarket is full of owner-run businesses that make it the anchor of stability for the German economy. By focusing on them, we were even able to grow during the major economic crisis in 2008/09.

• Strong demand for transformation to SAP S/4HANA
• German-speaking market will have to replace their SAP ECC platform by 2027
• Smart transformation via unique subscription model
• Potential to transform around 1,000 existing customers and to gain new customers
  

• Solid balance sheet
• Growing recurring revenues
• Stable cash flows

• Experienced management team
• Long-term oriented anchor investors
• Sustainability incorporated in strategy