Extended Focus due to Strategy Offensive 2022 / Financial Year 2018/19 1st Half-Year Results

Unaudited results: Sales: EUR 180.8 million (up 6% year on year) / Cloud services & support revenues: EUR 33.9 million (up 22% year on year) / 47% attributable to recurring revenues (prior year: 44%) / One-off costs for the strategy offensive and first-time application of IFRS 15 adversely affect the result to the tune of EUR 1.2 million in total / EBIT (adjusted): EUR 11.2 million (up 1% year on year) / Non-recurring tax and interest income of EUR 3.2 million from previously disputed loss carryforwards / Earnings after tax of EUR 10.0 million (up 38% year on year) / Sales and EBIT guidance for 2018/19 confirmed, gradual increase in margins from 2020

Filderstadt, 08 May 2019 – All for One Group AG, leading IT services and consulting provider, today published its unaudited results for the period from 1 October 2018 to 31 March 2019.

Non-recurring revenues from the sale of software licenses decreased, as expected, by 16% from the previous year's record level to EUR 21.7 million. In return, recurring cloud services & support sales increased significantly for six quarters in succession. They rose by 22% to EUR 33.9 million compared to the prior 6-month period. Recurring revenues (up 14% to EUR 85.1 million) also include software support sales (up 8% to EUR 51.2 million). As such, the share of total sales attributable to recurring revenues increased to 47% (Oct 2017 – Mar 2018: 44%). Sales from consulting & services increased by 7% to EUR 74.0 million. Total revenues consequently increased almost entirely organically by 6% overall to EUR 180.8 million. The inclusion of the acquisition of the SAP HR cloud specialist TalentChamp since January 2019 contributed external revenues of EUR 1.2 million to this result.

EBITDA declined by 4% to EUR 15.6 million and a drop in the half-year EBIT of 10% to EUR 10.0 million was recorded.

The strategy offensive 2022 and the first-time application of IFRS 15 starting on 1 October 2018 adversely affected the result to the tune of EUR 1.2 million. After adjustment for purposes of comparability with the prior year, adjusted EBITDA totalled EUR 16.9 million (Oct 2017 – Mar 2018: EUR 16.4 million), while adjusted EBIT – which was also adjusted by EUR 1.2 million – totalled EUR 11.2 million (Oct 2017 – Mar 2018: EUR 11.1 million). The adjusted EBIT margin fell slightly from 6.5% to 6.2%.

Earnings after tax increased by 38% to EUR 10.0 million and earnings per share by 36% to EUR 2.01. This is attributable to tax and interest income totalling EUR 3.2 million from previously disputed loss carryforwards (Section 8c German corporate income tax law), which has now been recognised in the consolidated income statement. Until now, this income was recognised in the balance sheet with no impact on profit or loss.

As of 31 March 2019, the equity ratio was 45% (30 Sep 2018: 42%), while the headcount had risen by 12% to 1,794 employees (31 Mar 2018: 1,604 employees).

As All for One Group AG CFO Stefan Land affirms: »As part of our strategy offensive 2022, we are focusing on further future areas of growth such as new work, cybersecurity & compliance, IoT & machine learning, and customer experience, as these are the areas that are increasingly enhancing the competitive strength of our customers. With our expertise and implementation skill, we can assist our customers in all disciplines across the digital board, bringing together the manifold aspects that define their ability to compete. We are confirming without change our guidance for the transitional financial year 2018/19. Accordingly, for the year 2018/19 as a whole, we continue to expect sales of between EUR 345 million and 355 million, and EBIT in the range of EUR 21.0 million and 22.0 million before one-off costs relating to the strategy offensive. The latter are expected to have a non-recurring effect at EBIT level in the mid-single-digit millions in the financial year 2018/19. We expect a gradual increase in margins from 2020.«

All for One Group AG will be publishing its full half-year financial report 2018/19 as scheduled on 9 May 2019.