Growth in the Cloud / Reluctance to Invest in Implementation Projects

Unaudited results: // Sales: EUR 92.3 million (down 2% year on year) // Cloud services & support revenue: EUR 18.8 million (up 12% year on year) // Decrease in license revenue due to investment restraint and cloud transformation // Ratio of recurring revenue increases to 50% (prior year: 45%) // First-time application of IFRS 16: sharp increase in EBITDA and balance sheet total // EBIT: EUR 4.8 million (down 12% year on year) // Earnings after tax: EUR 3.1 million (down 14% year on year) // Sales and EBIT guidance for 2019/20 confirmed

Filderstadt, 5 February 2020 – All for One Group AG, leading consulting and IT group, published its unaudited results for the period from 1 October to 31 December 2019 (incl. first-time application of IFRS 16) today.

Non-recurring revenue from the sale of software licenses decreased to EUR 10.4 million (minus 37%), as a consequence of noticeable reluctance to invest in implementation projects as well as the ongoing transformation towards recurring cloud revenue. Recurring revenue from cloud services and support grew by 12% to EUR 18.8 million. This core module in the strategy offensive 2022 for increasing recurring revenue is therefore continuing its growth. Overall, recurring revenue increased by 9% to EUR 45.8 million quarter on quarter and includes both the aforementioned cloud services and support sales, and software support revenue (up 7% to EUR 27.0 million). As such, the share of total sales attributable to recurring revenue increased to 50% (Oct – Dec 2018: 45%). Including consulting and services sales (plus 1% to EUR 36.1 million), total revenue for the quarter (Oct – Dec 2019) amounted to EUR 92.3 million (minus 2%).

All for One Group AG started applying IFRS 16 (»Leases«) on 1 October 2019. Prior-year figures were not amended (modified retrospective method). EBITDA totalled EUR 10.5 million (Oct – Dec 2018: EUR 8.2 million), up 29%. The EBITDA margin relevant to sales amounted to 11.4% (Oct – Dec 2018: 8.7%). Without IFRS 16, EBITDA would have been on a par with the prior year. The effect of IFRS 16 on EBIT – which decreased by 12% to EUR 4.8 million – was virtually zero. As a result, the EBIT margin amounted to 5.2% (Oct – Dec 2018: 5.8%). The prior-year figure of EUR 5.4 million included separately recognised extraordinary costs (EUR minus 0.6 million) relating to the strategy offensive 2022. Accordingly, the comparable EBIT in the prior-year period (without extraordinary costs) totalled EUR 6.0 million. The decrease in EBIT by EUR 1.2 million to 4.8 million (minus 21%) over the quarter Oct – Dec 2019 was mainly due to declining non-recurring revenue and, accordingly, contributions to earnings.

EBT totalled EUR 4.4 million (minus 16%), the result for the period amounted to EUR 3.1 million (minus 14%), and earnings per share to EUR 0.62 (minus 16%). Following first-time application of IFRS 16 and the issuance of new promissory note bonds, the balance sheet total increased by 25% to EUR 249.3 million. As of 31 December 2019, the equity ratio was 34% (30 Sep 2018: 41%), while the headcount had risen by 7% to 1,859 employees (31 Dec 2019: 1,734 employees).

The company confirms its guidance for the full financial year 2019/20 of total revenue from EUR 375 million to 385 million and EBIT from EUR 20 million to 22 million.

All for One Group AG CFO Stefan Land: »We are receiving excellent feedback from both our customers and the market about the strategic direction of the Group and about our expanded portfolio for providing companies with integrated across-the-board support for their transformation. This perception is confirmed by the number of people who visited our Mittelstandsforum 2019 for which the demand from 1,200 existing and potential customers was stronger than ever before. We expect the reluctance to invest in new implementation projects to decrease over the coming quarters. In order to remain competitive, companies will continue to digitalise processes and business models. Our solutions on platforms such as SAP S4/HANA or Microsoft's Azure will take on a key role.«

All for One Group AG will be publishing its full quarterly statement for the 3-month period 2019/20 as scheduled on 7 February 2020.