SNP | Corporate News

SNP AG remains on growth path with significant increase in revenue and earnings in 2015

Consolidated financial statements for 2015:

- Consolidated revenue of EUR 56.2 million (+85%); EBIT increases to EUR 4.6 million

- Earnings per share of EUR 0.69 (previous year: EUR 0.27)

- Proposed dividend: EUR 0.34 per share (+162%); distribution ratio: 49%

- EBITDA margin: 10.4% (+2.6 percentage points)

- EBIT margin: 8.1% (+3.4 percentage points)

- Market presence in North America and Asia expanded significantly

Outlook for 2016:

- Consolidated revenue to increase to between EUR 72 and 78 million

- EBIT margin of between 8% and 10%

Heidelberg, 30 March 2016 - SNP AG continued on its dynamic and profitable growth path in fiscal year 2015. All of the company's relevant key performance indicators improved, in some cases considerably. Consolidated revenue in 2015 increased by 84.5% and amounted to
EUR 56.2 million, after it was EUR 30.5 million in the previous year. EBIT grew by EUR 1.4 million compared to the previous year to EUR 4.6 million. Excellent capacity utilisation made a significant contribution to this positive performance along with a clear increase in the order backlog and rising project volumes. This means that SNP has confirmed the provisional figures for fiscal year 2015 that it published in January.

SNP AG simultaneously pressed ahead with its development into a global company in fiscal year 2015. The number of employees around the world increased to over 600. With the acquisition of majority interests in Hartung Consult GmbH, Berlin, and Astrums Consulting (S) Pte. Ltd., Singapore, SNP has gained deeper access to the rapidly growing Asian markets. SNP also expanded its business activities in North America.

The Executive Board is forecasting consolidated revenue to amount to between EUR 72 million and EUR 78 million and an EBIT margin of between 8% and 10% in fiscal year 2016; this is also based on the sustained strong level of incoming orders in the first months of the new fiscal year.

"The strategic course adopted over the past two years is having a clear and extremely positive effect. SNP has made itself even more stable and fit for the future. We have expanded our presence in key markets worldwide. Our efficient software and our advisory expertise are increasingly in demand for major and highly complex corporate transactions. Using our cross-industry software allows customers to successfully shape the digital revolution and seize new opportunities on the market. We are extremely confident that we will be able to actively press ahead with the SNP Group's continued development in 2016 and confirm our high growth momentum once again in the coming months, which can be seen in the figures for the past fiscal year. We see considerable potential in the areas of cloud services and S/4 Hana and the necessary transformation of legacy systems," said Dr Andreas Schneider-Neureither, CEO of SNP AG.

Key figures for fiscal year 2015 in detail:

In the 2015 financial year, SNP AG achieved consolidated revenue of EUR 56.2 million. Compared with EUR 30.5 million from the previous year, this equates to sales growth of 84.5%. Both SNP business segments contributed to the positive revenue and business development: The excellent order situation over the year, accompanied by growth in projects and project sizes, led to revenue growth of 106.1% to EUR 46.9 million in the Professional Services consultancy segment (previous year: EUR 22.7 million). In the Software segment, which comprises licence and maintenance revenue, revenue increased by 21.1% to EUR 9.4 million in the same period (previous year: EUR 7.7 million). RSP Reinhard Salaske & Partner Unternehmensberatung GmbH, which was fully included in consolidation for the first time, contributed EUR 8.8 million to revenue growth. Adjusted for this acquisition effect, operating revenue growth amounted to EUR 17.0 million or 55.7%.

Irrespective of other growth investments and acquisition costs, EBITDA improved from EUR 2.4 million to EUR 5.8 million. In the same period, EBIT increased from EUR 1.4 million in the previous year to EUR 4.6 million. This corresponded to an EBITDA margin of 10.4% and an EBIT margin of 8.1%. After taxes, this resulted in net income of EUR 2.6 million for fiscal year 2015, corresponding to a net margin of 4.5%.

Based on the net income generated, SNP AG reported an operating cash flow of EUR 1.2 million in fiscal year 2015 (prior year: EUR 1.4 million). In investment activities, cash outflow of EUR 5.0 million was recorded. This was offset by cash generated by financing activities of EUR 11.9 million. Total cash flow was therefore EUR 8.1 million (prior year: EUR -0.7 million). Accordingly, cash and cash equivalents increased from EUR 5.7 million to EUR 13.8 million as at 31 December 2015, meaning that SNP AG continues to enjoy an extremely solid financial position.

In light of the positive development in fiscal year 2015, the Executive Board and the Supervisory Board will propose a dividend of EUR 0.34 per share to the Annual General Meeting. This corresponds to a distribution ratio of around 49%.

Outlook for 2016

As a result of the growth investments made and the improvement in SNP's reputation on the market in the past fiscal year, the Executive Board is anticipating a further increase in revenue in both the Professional Services segment and the Software segment in the current fiscal year. SNP is focusing in particular on the further development of its software and the continued improvement of its product quality. The growing proportion of total revenue attributable to software licenses and the resulting economies of scale are expected to lead to rising operating margins in the medium to long term.

The 2015 Annual Report, published today, is available on the SNP website at
http://www.snp-ag.com/eng/Investor-Relations/Financial-Publications/Financial-Reports/2016/

About SNP

SNP empowers organizations to successfully shape digital transformations and pursue market opportunities on the basis of highly adaptable IT. SNP's solutions and software are used to integrate previously separate IT environments, support M&A projects and carve-outs, and cultivate new markets outside of the home market. SNP Transformation Backbone(R) is the world's first standard software to automatically analyze and execute IT system transformation. It delivers significantly better quality while greatly reducing the time and expense involved in transformation projects.

SNP AG has over 600 employees in Europe, South Africa, Asia and the US. The company is headquartered in Heidelberg and generated around EUR 56 million in revenue in 2015, according to preliminary figures. Its products and solutions are used by multinationals in manufacturing, finance and the service sector. SNP AG was established in 1994, went public in 2000, and has been in the Frankfurt Stock Exchange's Prime Standard segment since August 2014 (ISIN DE0007203705).

For further information, visit www.snp-ag.com.

Contact for Investor Relations:

Marcel Wiskow
Tel.: +49 6221 6425-637
Fax: +49 6221 6425-470
E-mail: investor.relations@snp-ag.com
http://www.snp-ag.com/eng/Investor-Relations/