9-month results 2020/21: Strong growth in cloud sales // SAP S/4HANA transformation gains pace // Guidance raised

Highlights (all figures unaudited): Microsoft Partner of the Year – »SAP on Azure« finalist for CONVERSION/4 // Cloud sales: up 11% to EUR 63.5 million, share of recurring revenues: 52% (prior year: 52%) // License revenues: down 11% to EUR 18.2 million // Total revenues: up 5% to EUR 280.4 million // EBIT: up 9% to EUR 15.8 million, earnings for the period: up 12% to EUR 10.5 million // CORE segment: SAP S/4HANA transformation gains pace // LOB segment: Strong increase in cloud subscriptions and EBIT // Guidance for sales and EBIT 2020/21 raised

Filderstadt, 4 August 2021 – All for One Group SE, leading consulting and IT group, published its unaudited results for the period from 1 October 2020 to 30 June 2021 today.

The economic recovery is giving an additional boost to All for One Group's strategy of comprehensively taking customers' competitiveness in the digital world to the next level. The Group was able to further increase recurring revenues both from cloud services and support (plus 11% to EUR 63.5 million) and from software support (plus 2% to EUR 83.5 million). At EUR 146.9 million in total (plus 6%), recurring revenues continue to account for 52% of total sales.

License revenues decreased by 11% to EUR 18.2 million compared to the prior 9-month period. The trend reflects both the cloud transformation (»Rise with SAP«) and projects that were shelved in the wake of the pandemic and are now increasingly being revived. Compared to the prior-year quarter, licensing revenues increased by 35% in the 3rd quarter (Apr – Jun 2021) to EUR 6.1 million. Consulting and services revenues increased by 6% compared to the prior-year level (Oct 2019 – Jun 2020: EUR 108.3 million). Accordingly, total revenues of EUR 280.4 million (9 months 2020/21) are up 5% year on year, with the 3rd quarter (Apr – Jun 2021) recording an increase of 11% versus the corresponding prior-year quarter, to EUR 94.9 million.

EBITDA totalled EUR 31.9 million (Oct 2019 – Jun 2020: EUR 31.0 million), up 3%. The EBITDA margin relevant to sales amounted to 11.4% (Oct 2019– Jun 2020: 11.6%). Likewise, EBIT increased disproportionately to sales performance, rising 9% to EUR 15.8 million. EBT totalled EUR 14.9 million (plus 11%), while the earnings for the period amounted to EUR 10.5 million (plus 12%), and earnings per share to EUR 2.08 (plus 12%). The equity ratio as of 30 June 2021 was 34% (30 Sep 2020: 35%). Year on year, the headcount has increased by 8% to 1,956.

Despite a marked decline in licensing revenues and margins, sales in the CORE segment (ERP and collaboration solutions) increased by 4% to EUR 234.4 million (segment EBIT: plus 3% to EUR 11.9 million). The good progress in expanding new products and services – for IoT & machine learning, cybersecurity & compliance or new work & collaboration, for example – and the Group’s growing access to the larger midmarket are creating an ever broadening base for business. The sales pipeline for the Conversion/4 subscription model based on SNP’s Bluefield method to migrate customers to SAP S/4HANA continues to make good progress. In addition, a growing number of transformation projects are starting.

In the LOB (lines of business) segment, recurring cloud subscriptions are enhancing the scalability of the business model and offer future additional margin potential. With LOB segment sales increasing by 5% to EUR 57.8 million, the growth in EBIT – of plus 38% to EUR 3.9 million – was significantly disproportionate. Accordingly, the segment’s EBIT margin has now reached 6.8% (Oct 2019 – Jun 2020: 5.1%).

Following awards such as »SAP Partner of the Year« (Germany) and receipt of a global SAP Pinnacle Award 2021, the special expertise and innovative strength of All for One Group have now also been recognised by Microsoft as a global Partner of the Year – Finalist in the category »SAP on Azure«. External market observers, such as ISG (»SAP HANA Ecosystem Services – 2021«), also classify All for One Group as SAP S/4HANA »Leaders«.

According to Stefan Land, CFO at All for One Group: »The wave of migrations from SAP ERP to SAP S/4HANA is gaining pace, and our Conversion/4 subscription model is growing accordingly. This is enabling us to acquire new customers from the larger midmarket and to expand our market share in the SAP ecosystem. For the large wave of migrations to SAP S/4HANA we are very well prepared«.

Following close examination of its guidance from 13 November 2020 for financial year 2020/21 – a slight increase in sales compared to the prior-year result of EUR 355.4 million and EBIT in the range between EUR 17.5 million and 20.5 million – the Group has revised its forecast upwards. It now expects sales in financial year 2020/21 of between EUR 370 million and 380 million and EBIT in the range between EUR 19 million and 22 million. Economic development over the coming months and weeks remains the biggest risk.

All for One Group SE will be publishing its full quarterly statement for the 9-month period 2020/21 as scheduled on 6 August 2021.