Figures for first 9 months 2019/20 // Substantial increase in EBIT and operating margin // Pandemic is changing how we work // Innovative SAP transformation subscription model launched

Unaudited results: Sales: EUR 267.3 million, on a par with prior-year period // Cloud services & support revenues: EUR 57.0 million (up 11% year on year) // License sales: EUR 20.5 million (down 32% year on year) // Ratio of recurring revenues increases to 52% (prior year: 48%) // EBIT: EUR 14.5 million (up 37% year on year); adjusted by extraordinary costs in prior year (up 10% year on year) // Revised forecast 2019/20 confirmed // Conversion to All for One Group SE completed // Strategic initiative with SAP, Microsoft and SNP to create a subscription model for S/4HANA conversion and innovation in the Azure cloud

Filderstadt, 5 August 2020 – All for One Group SE, leading consulting and IT group, published its unaudited results for the period from 1 October 2019 to 30 June 2020 (incl. first-time application of IFRS 16) today.

Compared to the first 9 months of the previous year, non-recurring revenues from the sale of software licenses decreased significantly to EUR 20.5 million (minus 32%) as client projects were delayed and follow-on licenses failed to materialise in the wake of the pandemic.

Recurring revenues from cloud services and support increased by 11% to EUR 57.0 million. This core module of the strategy offensive 2022 for increasing recurring revenues is therefore continuing to grow robustly.

Overall, recurring revenues increased by 7% to EUR 138.5 million year on year and include both the aforementioned cloud services and support sales, and software support revenues (up 5% to EUR 81.5 million). As such, the share of total sales attributable to recurring revenues increased to 52% (Oct 2018 – Jun 2019: 48%).

Including consulting and services sales (EUR 108.3 million), total revenues (EUR 267.3 million) for the 9-month period (Oct 2019 – Jun 2020) were on a par with the prior year.

The company started applying IFRS 16 Leases on 1 October 2019. Prior-year figures were not adjusted (modified retrospective method). EBITDA totalled EUR 31.0 million (Oct 2018 – Jun 2019: EUR 19.2 million), up 61%. The EBITDA margin relevant to sales amounted to 11.6% (Oct 2018 – Jun 2019: 7.2%). Without IFRS 16, EBITDA would have been 26% above the prior year.

The effect of IFRS 16 on EBIT – which increased by 37% to EUR 14.5 million – was virtually zero. As a result, the EBIT margin amounted to 5.4% (Oct 2018 – Jun 2019: 3.9%). The prior-year figure of EUR 10.5 million included separately recognised extraordinary costs (minus EUR 2.6 million) relating to the strategy offensive 2022. Accordingly, the comparable EBIT in the prior-year period (excl. extraordinary costs) totalled EUR 13.1 million. EBIT therefore rose by EUR 1.4 million to 14.5 million (plus 10%) compared to the prior-year period.

In addition to robust growth in recurring revenues, it is the focused implementation of changing the way we work with economies of scale from increased remote consulting and significantly lower travel expenses, which contributed to this positive earnings performance.

EBT totalled EUR 13.4 million (up 32%), the earnings for the period amounted to EUR 9.4 million (minus 6%), and earnings per share to EUR 1.86 (minus 8%). The corresponding figures for the prior year (Oct 2018 – Jun 2019) had, however, included non-recurring tax and interest income of EUR 2.9 million and EUR 0.3 million, respectively.

Following first-time application of IFRS 16 and the issuance of new promissory note bonds in the current financial year, the balance sheet total increased by 22% to EUR 243.6 million. As of 30 June 2020, the equity ratio was 35% (30 Sep 2019: 41%), while the headcount of 1,816 employees is nearly on a par with the prior year (30 Jun 2019: 1,821 employees).

All for One Group SE CFO Stefan Land: »In a very short space of time, the pandemic has fundamentally changed both how we and how our clients work. We are now experiencing the boost to digitalisation across the board. Our business model is ideal for keeping pace with this dynamic trend. The commitment of our whole team is magnificent. Our clients have meanwhile learned to appreciate the benefits of our remote services. We are also breaking innovative new ground when it comes to client transformations. Conversion/4 is All for One Group's innovative subscription model for SAP transformation. We deliver SAP S/4HANA conversion together with SAP services including operation in the Azure cloud to our clients for a fixed monthly fee. The technological basis for this support and pricing model – which we believe is currently the only one of its kind in the whole SAP market – is secured by our partnerships with SAP, Microsoft and, most recently, SNP, whose SNP Bluefield technology enormously simplifies migration to SAP S/4HANA. Once the pandemic is over, we expect a wave of migrations to SAP S4/HANA«.

The company is upholding its revised guidance for 2019/20, as published on 6 May 2020. Sales could be slightly below the prior-year figure (sales in 2018/19: EUR 359.2 million), EBIT 2019/20 could be substantially less than EUR 19.8 million (see Annual Report 2018/19, Note 3.4, for adjusted EBIT for financial year 2018/19).

All for One Group SE will be publishing its full quarterly statement for the 9-month period 2019/20 as scheduled on 7 August 2020.