SNP | Corporate News

SNP AG on Stable and Strong Growth Path at the End of the First Half of the Year

- Revenue growth in the first half of 2017 to EUR 48.0 million (+26.7%); Q2 2017: EUR 26.4 million (+36.0%)

- Significant increases in order entry and order backlog:

- Order entry (June 30, 2017): EUR 57.6 million (+25%)

- Order backlog (June 30, 2017): EUR 48.5 million (+66%)

- 1,000-employee mark passed in May

- Positive earnings performance in Q2 despite strategic investments in growth and one-time expenses in the mid-single-digit million range

- EBITDA margin in the first half of the year: -1.2%; Q2: 4.7%

- The Executive Board confirms its revenue and earnings forecast

- 2017 revenue: approximately EUR 110 million

- 2017 earnings: 7% to 12% EBIT margin

Heidelberg, Germany, July 28, 2017 - In the first half of 2017, the SNP Group has made major progress toward its strategic goal to become the global standard for software-based data transformation. Based on the implementation of an accelerated inorganic internationalization strategy, SNP now has a significant presence in almost all key global economic regions and is accessible globally for the benefit of its customers.

In the first six months of the year, Group revenue grew 26.7% to EUR 48.0 million compared with the previous year. In the second quarter, revenue rose well above average to EUR 26.4 million (+36.0%).

Operating performance in the first half of the year was primarily affected by extraordinary one-time expenses as well as investments in growth in the mid-single-digit million range. Adjusted for these extraordinary one-time expenses and exchange rate effects, EBITDA and EBIT margins are in the mid-single-digit percentage range at the end of the first six months of the year.

Unadjusted for acquisition costs and one-time effects, the SNP Group recorded negative earnings before interest, taxes, depreciation and amortization (EBITDA) of EUR -0.6 million at the end of the first six months of the year (previous year: EUR 4.1 million), while the operating result (EBIT) amounted to EUR -1.9 million in the same period (previous year: EUR 3.4 million). These figures coincide with an EBITDA margin of -1.2% (previous year: 10.8%) and an EBIT margin of -3.9% (previous year: 9.0%).

EBITDA amounted to EUR 1.2 million in the second quarter (previous year EUR 2.2 million); EBIT was EUR 0.5 million (previous year: EUR 1.8 million). These figures coincide with an EBITDA margin of 4.7% (previous year: 11.1%) and an EBIT margin of 2.1% (previous year: 9.2%).

"Digitalization around the world has continued to accelerate. As a result, we expect a rapidly increasing demand for our software and also our services in the coming years. We are currently taking advantage of the opportunities still available to secure the necessary market access and resources in the overheated global "war for talent" in order to be among those who substantially benefit from this boom. In particular, we are able to support our globally active customers in their projects worldwide through our most recent acquisitions. In doing so, we will ensure that our acquisitions remain profitable and that they support our overall strategic goals," said Dr. Andreas Schneider-Neureither, CEO of SNP AG. "The positive earnings performance in the interim period as well as our promising pipeline of software give us the continued confidence to maintain our earnings forecast for the current fiscal year," Schneider-Neureither also explained.

Forecast

The Executive Board is pursuing the principle goal of strong and profitable growth of the SNP Group. At the same time, the company aims to sustainably strengthen its international market position. As in previous years, SNP expects that the second half of the year will be much stronger.

With the purchase of the Polish BCC Group, the Executive Board has adjusted the revenue forecast upward and expects Group revenue of approximately EUR 110 million in the 2017 fiscal year. With the higher revenue forecast of more than 15%, an EBIT margin of 7% to 12% is expected. Based on the organic and inorganic growth investments, the SNP Group's profitability is subject to a certain amount of fluctuation.

Given this situation and the increase in sales of software licenses expected in the second half of the year, the Executive Board maintains its earnings forecast for the entire 2017 fiscal year that was published in the 2016 Annual Report.

Order Entry and Order Backlog

Order entry as of June 30, 2017, totaled EUR 57.6 million, approximately 25% above the comparable amount in the previous year (EUR 46.1 million). Order entry increased by 36% in the second quarter of the current fiscal year compared with the first quarter.

The order backlog as of June 30, 2017, was EUR 48.5 million; this corresponds to an increase of approximately 66% over the comparable previous year's figure of EUR 29.3 million. This significant increase is primarily attributable to the sharp increase in incoming orders and confirms the sustainability of the SNP business model. In this regard, SNP was able to secure significant and sizable orders from internationally renowned market leaders in their respective markets.

The Q2 2017 report published today can be downloaded from the SNP website at:
https://www.snp-ag.com/investor-relations/financial-publications/financial-reports/2017/

About SNP

SNP helps companies adapt their business models and successfully utilize opportunities for digitalization with IT that is receptive to change. SNP's software and services make it possible to implement business or technical changes quickly and efficiently even in global business applications.

With CrystalBridge and Transformation Backbone with SAP LT, SNP provides the world's leading software suite for data transformations that automatically analyzes, implements and maintains changes to IT systems. This provides customers with clear qualitative advantages, while significantly reducing the time and expense involved in transformation projects.

The SNP Group has over 1,250 employees worldwide. Headquartered in Heidelberg, the company generated revenue of approximately EUR 81 million in 2016. SNP's customers are global corporations from all industries. SNP 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.snpgroup.com

Investor Relations Contact:

Marcel Wiskow
Tel.: +49 6221 6425-637
Fax: +49 6221 6425-470
Email: investor.relations@snp-ag.com
https://www.snp-ag.com/investor-relations/