SNP | Corporate News

SNP AG Remains on Track for Growth

- Revenue in the first nine months of the 2016 fiscal year increased to EUR 57.5 million (+39.1%)

- Significantly higher revenue in the America region

- Order entry (EUR 72.3 million) and order backlog (EUR 36.2 million) well above the previous year's level

- EBITDA margin: 10.9%, EBIT margin: 9.0%

- Earnings per share: EUR 0.77 (previous year: EUR 0.63)

- Equity ratio increased to 62.5%

Heidelberg, October 28, 2016 - In the first nine months of the 2016 fiscal year, SNP AG grew strongly again: Group revenue increased by 39.1% to EUR 57.5 million. Earnings before interest and taxes (EBIT) improved from EUR 3.8 million in the previous year by 36.7% to EUR 5.2 million. Net income for the Group reached EUR 3.2 million after EUR 2.3 million in the previous year. Earnings per share rose from EUR 0.63 to EUR 0.77.

"SNP is on track for both strong and sustainable growth. We are making tremendous progress in implementing our strategy, which aims for growth and increased market relevance. Scarcely any major transformation plan such as a merger or split takes place today without SNP being involved in some form. With our impressive performance in the splitting up of Hewlett-Packard, we have positioned ourselves for additional major mandates. We are playing a key role in the current merger of two global players in the chemical industry. Our strategy is taking hold: We are the specialist for complex IT tasks related to important transformation projects for worldwide customers. The ability to respond quickly to changes in the competitive environment is a key competency in today's global economy. Customers increasingly recognize that the transformation of IT is decisive. This will provide additional tailwind for our strategy," says Dr. Andreas Schneider-Neureither, CEO of SNP AG.

Nine-Month Performance in Detail:

In the first nine months of the 2016 fiscal year, SNP AG achieved Group revenue of EUR 57.5 million. Compared to the same period of the previous year, this corresponds to a significant increase of EUR 16.2 million or 39.1% (previous year: EUR 41.4 million). Revenue in the third quarter of 2016 amounted to EUR 19.6 million (previous year: EUR 14.5 million), 35.3% above the level of the same quarter of the previous year.

Decisive factors were the sustained very good order situation as well as very good capacity utilization throughout the year given a significantly higher order backlog. Viewed regionally, revenue in the North America region rose particularly strongly in the third quarter. In the North American market, revenue of EUR 4.9 million was generated in the third quarter of 2016; compared to the same period of the previous year, this corresponds to an increase of EUR 2.9 million or approximately 140%.

Hartung Consult and Astrums Consulting, which were fully consolidated for the first time during the reporting period, contributed approximately 17% of revenue growth in the first nine months of the fiscal year. As a result, acquisition-adjusted, organic revenue growth relative to the first nine months of 2015 totaled approximately 22%. In the third quarter of 2016, organic revenue growth amounted to approximately 18%; the share of the revenue increase attributable to the companies consolidated for the first time was approximately 17%.

On the segment side, the Professional Services division, which primarily includes consulting services, contributed EUR 48.0 million (previous year: EUR 34.6 million) to revenue in the first nine months of the current fiscal year. Compared to the previous year's period, this corresponds to an increase of 38.8%. Adjusted for acquisitions, the remaining growth amounted to approximately 19%.

In the first nine months of the year, revenue of EUR 9.5 million (previous year: EUR 6.8 million) related to the Software division, which includes licensing and maintenance fees. Within this segment, licensing fees increased by 52.4% from the previous year. This was essentially attributable to the sale of a Group license for the SNP Transformation Backbone software as a result of a large order in the chemical sector in the USA. Maintenance fees of EUR 1.6 million were slightly above the level of the previous year.

The very good revenue development in the first nine months of the fiscal year also influenced earnings: Despite even higher expenses related to additional growth, SNP was able to maintain the positive earnings performance here as well. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased to EUR 6.3 million (previous year: EUR 4.7 million). Earnings before interest and taxes (EBIT) amounted to EUR 5.2 million, compared to EUR 3.8 million in the previous year's period. This corresponds to profit margins of 10.9% (EBITDA) or 9.0% (EBIT). At the bottom line, net income for the period of EUR 3.2 million remained after EUR 2.3 million in the previous year's period. This corresponds to a net margin of 5.6% (previous year: 5.7%). Earnings per share amounted to EUR 0.77 (previous year: EUR 0.63). Earnings per share are related to the weighted average number of shares. Calculation using all issued ordinary shares (4,954,904 shares with dividend rights) results in earnings per share of EUR 0.64 on a nine-month basis.

The financial position of the company remains positive: Cash and cash equivalents as of September 30, 2016, amounted to EUR 36.0 million (as of December 31, 2015: EUR 13.8 million). The cash inflow from financing activities of EUR 22.2 million resulted primarily from positive cash flow from financing activities of EUR 27.3 million (previous year: EUR 12.4 million), which in turn was primarily attributable to net proceeds from the capital increase in 2016 of EUR 30.1 million.

Compared to December 31, 2015, total assets increased by EUR 34.3 million to EUR 79.5 million, primarily reflecting the majority acquisitions of Hartung Consult and Astrums Consulting as well as a capital increase. The equity ratio improved to 62.5% (as of December 31, 2015: 35.4%).

Outlook:

The order backlog as of September 30, 2016, totaled EUR 36.2 million, approximately 81% above the comparable amount in the previous year of EUR 20.0 million. On the same reporting date, order entry of EUR 72.3 million was approximately 56% above the comparable amount in the previous year. For the full year, the Executive Board continues to expect Group revenue between EUR 72 million and EUR 78 million and plans on an operating earnings margin between 8% and 10%.

The Q3 2016 report published today can be downloaded from the SNP website at:
http://www.snp-ag.com/investor-relations/financial-publications/financial-reports/2016/

About SNP

SNP enables companies to successfully navigate the rapidly changing digital environment and seize their opportunities on the market with a highly flexible IT infrastructure. The solutions and software from SNP provide support for M&A projects and carve outs, allow for the integration of previously divergent IT landscapes and promote expansion into new markets outside of the domestic space. With SNP Transformation Backbone(R), the company offers the world's first standardized software for automatically assessing and implementing changes to IT systems. This provides customers with clear qualitative advantages while notably reducing the time and expense involved in transformation projects.

SNP AG employs about 650 people across Europe, South Africa, Asia and the United States. Headquartered in Heidelberg, the company generated revenue of approximately EUR 56 million in 2015. Its customers include globally operating corporations in the industrial, financial and service sectors. SNP AG was founded in 1994 and has been publicly traded since 2000. As of August 2014, the company is listed on the Prime Standard segment of the Frankfurt Stock Exchange (ISIN DE0007203705).

Further information is available at www.snp-ag.com

Investor Relations Contact:

Marcel Wiskow

Tel.: +49 6221 6425-637

Fax: +49 6221 6425-470

Email: investor.relations@snp-ag.com

http://www.snp-ag.com/de/Investor-Relations/