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Ad-hoc: Figures for First Half of Financial Year 2019/20 // Growth Plans Temporarily Hampered by Worldwide Pandemic

Unaudited results: Sales: EUR 182.2 million (up 1% year on year) // EBIT: EUR 9.4 million (down 6% year on year) // Corona pandemic is making it difficult to revise forecast for 2019/20 // Digitalisation and transformation momentum expected to increase

Filderstadt, 6 May 2020 – All for One Group AG, leading consulting and IT group, today published its unaudited results for the period from 1 October 2019 to 31 March 2020 (incl. first-time application of IFRS 16) together with their revised forecast 2019/20.

Year on year, non-recurring revenues from the sale of software licenses decreased to EUR 15.9 million (minus 27%) as the willingness to invest decreased and follow-on licenses failed to materialise. Recurring revenues from cloud services and support increased by 11% to EUR 37.7 million. Overall, recurring revenues increased by 8% to EUR 91.9 million year on year and include both the aforementioned cloud services and support sales, and software support revenues (up 6% to EUR 54.2 million). As such, the share of total sales attributable to recurring revenues increased to 50% (Oct 2018 – Mar 2019: 47%). Including consulting and services sales (plus 1% to EUR 74.4 million), total revenues for the first six months (Oct 2019 – Mar 2020) amounted to EUR 182.2 million (plus 1%).

All for One Group AG started applying IFRS 16 Leases on 1 October 2019. Prior-year figures were not adjusted (modified retrospective method).

EBITDA totalled EUR 20.6 million (Oct 2018 – Mar 2019: EUR 15.6 million), up 32%. The EBITDA margin relevant to sales amounted to 11.3% (Oct 2018 – Mar 2019: 8.6%). Without IFRS 16, EBITDA would have been 3% above prior year.

The effect of IFRS 16 on EBIT – which decreased by 6% to EUR 9.4 million – was virtually zero. As a result, the EBIT margin amounted to 5.2% (Oct 2018 – Mar 2019: 5.5%). The prior-year figure of EUR 10.0 million included separately recognised extraordinary costs (minus EUR 1.0 million) relating to the strategy offensive 2022. Accordingly, the comparable EBIT in the prior-year period (excl. extraordinary costs) totalled EUR 11.0 million. The resulting decrease of EBIT by EUR 1.6 million to EUR 9.4 million (minus 14%) in the six-month period (Oct 2019 – Mar 2020) was substantially due to the increased failure to materialise of non-recurring revenues from license sales and to delays in customer projects.

Although it is still not possible to estimate the economic impacts of the pandemic, it will definitely hamper the growth plans from the pre-crisis era. Sales in 2019/20 could now be slightly below the prior-year figure (sales in 2018/19: EUR 359.2 million). By contrast, the drop in EBIT in 2019/20 compared to the prior-year figure of EUR 19.8 million (»adjusted EBIT« in financial year 2018/19) could be much more severe. »Adjusted EBIT« reflects the result of operations (EBIT) from the prior year (EUR 12.6 million) adjusted for the extraordinary costs that occurred in financial year 2018/19 (EUR 7.2 million) (see Annual Report 2018/19, note 3.4).

Depending on the duration of the recession in the most important industrial countries of the world, it may take longer for All for One Group to achieve the financial objectives of its strategy offensive 2022 – sales of between EUR 550 million and 600 million and an EBIT margin in excess of 7% – that it had originally planned to achieve in financial year 2022/23.

Having completed the launch of its strategy offensive last year, All for One Group AG believes it is well equipped to grow profitably once the markets return to normal. All for One Group AG will be publishing its full half-year financial report for the 6-month period 2019/20 as scheduled on 8 May 2020.