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) // Cloud services & support revenues: EUR 37.7 million (up 11% year on year) // License sales: EUR 15.9 million (down 27% year on year) // Ratio of recurring revenues to total sales increases to 50% (prior year: 47%) // EBIT: EUR 9.4 million (down 6% year on year) // Earnings after tax: EUR 6.0 million (down 40% year on year; prior year incl. non-recurring tax and interest income of EUR 3.2 million) // Corona pandemic is making it difficult to revise forecast for 2019/20 // Immediate service packages prompted by the pandemic are proving popular // Digitalisation and transformation momentum expected to increase

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

Year on year, non-recurring revenues from the sale of software licenses decreased significantly to EUR 15.9 million (minus 27%) as the willingness to invest dropped sharply and follow-on licenses failed to materialise. Recurring revenues from cloud services and support increased by 11% to EUR 37.7 million. This core module of the strategy offensive 2022 for increasing recurring revenues is therefore continuing to grow robustly albeit somewhat more moderately. 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.

EBT totalled EUR 8.7 million (minus 12%), the earnings for the period amounted to EUR 6.0 million (minus 40%), and earnings per share to EUR 1.19 (minus 41%). The corresponding figures for the prior year (Oct 2018 – Mar 2019) had, however, included non-recurring tax and interest income of EUR 2.9 million and EUR 0.3 million, respectively.

Following first-time application of IFRS 16 and the issuance of new promissory note bonds (Oct 2019), the balance sheet total increased by 20% to EUR 239.4 million.

As of 31 March 2020, the equity ratio was 34% (30 Sep 2019: 41%), while the headcount had risen by 2% to 1,838 employees (31 Mar 2019: 1,794 employees).

All for One Group AG CFO Stefan Land: »We responded promptly to the coronavirus situation. Our staff are very well equipped with remote desks and are doing a great job from their home offices. Both operation and support for our base of more than 2,500 customers are assured. Demand for our new immediate service packages, prompted by corona – to set up short-time compensation for furloughed staff or for digital collaboration, for example – is strong. By the same token, remote project delivery is not only gaining acceptance; the advantages of the same are increasingly being recognised. We are even increasingly rolling out major projects, such as SAP S/4HANA implementations, without being physically present on site. Although it is still not possible to even approximately estimate the economic impacts of the pandemic, it is definitely hampering our 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.

Nevertheless, the Group is already perceiving a strong drive towards even more digitalisation and end to end business transformation, which should gain pace moving forwards. Having successfully completed the launch of its strategy offensive last year, All for One Group AG believes it is even better equipped to grow profitably and to emerge from the corona crisis in an even stronger competitive position than before 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.