Preliminary figures for financial year 2021/22

Preliminary (unaudited) results and guidance:

• Sales: EUR 452.7 million (up 21% year on year); recurring revenues increase by 19%
• SAP transformation: CONVERSION/4 business more than doubled
• Earnings under pressure due to Covid-19, economic situation, inflation and efforts to integrate four acquisitions
• EBIT before M&A effects (non-IFRS) increases by 8% to EUR 27.3 million; EBIT margin before M&A effects (non-IFRS) at 6.0%
• EBIT: EUR 17.6 million (down 15% year on year); EBIT margin: 3.9% (prior year: 5.5%)
• With dual leadership into the new financial year: Michael Zitz appointed Co-CEO
• Profitability: Expansion of the regional delivery centers in Poland, Turkey and Egypt
• Guidance for financial year 2022/23

Filderstadt, 21 November 2022 – All for One Group SE, leading consulting and IT group, published its preliminary and unaudited results for the period from 1 October 2021 to 30 September 2022 as well as its guidance for 2022/23.

Sales in financial year 2021/22 increased significantly by 21% to EUR 452.7 million, while EBIT declined by 15% to EUR 17.6 million. In contrast, EBIT before M&A effects (non-IFRS) increased by 8% to EUR 27.3 million.

Sales growth was enhanced partly by the integration of the companies acquired in financial year 2021/22 – All for One Poland, ASC Group, blue-zone GmbH and POET Group – and partly by organic growth of 7%.

Following a robust first half of financial year 2021/22 and a difficult 3rd quarter 2021/22 burdened by the negative impact on sales of a greater number of people off sick due to the pandemic, project deferrals, inflation-related price increases and pressure on earnings from the cost of integrating acquisitions, the Group is noticing that the actions put in place are starting to take effect in the 4th quarter 2021/22 and that EBIT has stabilised.

Continued demand for digitalisation services, the trend towards cloud transformation and All for One Group's broad portfolio of products and services will drive the future growth of the Group. Nevertheless, the deferral or suspension of projects at short notice has become commonplace due to the pandemic, supply chain bottlenecks or the uncertainty among the Group’s customers surrounding economic development.

Sales in the CORE segment (ERP and collaboration solutions) rose by 23% to EUR 388.0 million while EBIT declined by 16% as a result of higher costs in the 2nd half-year 2021/22. Sales generated by the customised technology-based service model (»CONVERSION/4«) more than doubled to EUR 12.1 million. Sales in the lines of business solutions in the LOB segment increased by 14% to EUR 81.9 million while EBIT was down 9% to EUR 4.2 million as a result of slightly reduced capacity utilisation and higher costs.

The Group was able to further increase recurring revenues from cloud services and support (plus 32% to EUR 112.0 million) and from software support (plus 4% to EUR 116.4 million). At EUR 240.5 million (plus 19%), the strategic performance metric of recurring revenues – a key indicator of future sales and cash flow growth potential – currently accounts for 53% of total revenues.

»The financial year just ended was a key milestone on our journey towards becoming a provider of digitalisation. Implementation of the »Strategy Offensive 2022« not only created a strong and broad foundation of IT and consulting services, but also specifically expanded our customer base. The portfolio of products and services was enhanced by the four acquisitions during the year under review. Our increasingly international business and the diverse business areas offer numerous opportunities for the Group in strongly growing IT markets. Over the coming financial year efforts will focus on concluding the strategy offensive that was launched in financial year 2018/19 but delayed by the pandemic. Areas of focus include expanding and involving the regional delivery centers more closely in business operations, expanding Microsoft business and improving margins following completion of the integration of the newly acquired companies«, according to Michael Zitz, new Co-CEO.

EBITDA amounted to EUR 47.1 million (2020/21: EUR 42.1 million), while EBIT totalled EUR 17.6 million (minus 15%). The EBIT margin was 3.9% (2020/21: 5.5%). EBIT before M&A effects (non-IFRS) shows the »real« operating result adjusted for acquisition-related external expenses and income and acquisition-related amortisation, depreciation and impairment on intangible assets. Despite the unplanned charges, this metric increased by 8% to EUR 27.3 million compared to the prior year. EBT totalled EUR 15.9 million (minus 18%), while the result for the period amounted to EUR 11.0 million (minus 18%), and earnings per share to EUR 2.20 (minus 18%).

The equity ratio as of 30 September 2022 was 29% (30 Sep 2021: 35%). Cash and cash equivalents rose from EUR 75.0 million to EUR 77.5 million. In addition to the solid structure of its balance sheet, the Group was able to secure attractive long-term financing when it successfully placed EUR 40 million in promissory note loans in May 2022.

The headcount has increased substantially year on year to 2,758 employees as of 30 September 2022 (30 Sep 2021: 1,991). The health index was 96.6% (2020/21: 97.4%).

Guidance

In light of unpredictable influences outside the Group's control, the management board believes that the publication of reliable guidance is only possible to a very limited extent at the present time. Further economic setbacks due to rising inflation, uncertainties surrounding energy supplies, the pandemic, supply chain problems facing our customers, and the war in Ukraine cannot be ruled out by any means. They could result in lower demand, further project postponements and increased defaults and insolvencies among our customer base, and thus jeopardise our guidance.

In spite of these uncertainties, the management board has decided to issue guidance for financial year 2022/23 based on its current state of knowledge. Assuming the situation with orders in hand remains robust and satisfactory, the customer base remains stable and broad, and growth in the IT services market is in line with forecasts, All for One Group predicts sales growth of between EUR 470 million and EUR 500 million for financial year 2022/23 (2021/22: EUR 452.7 million). EBIT before M&A effects (non-IFRS) is expected to be in a range between EUR 27.5 million and EUR 30.5 million.

According to All for One Group CFO Stefan Land: »We made very good progress with developing our business and organisational structures over the past financial year. The four companies we acquired were a perfect fit. In the new financial year, we not only want to continue growing, but also to demonstrate the first signs of enhanced performance. The pipeline is very full, and investments in digitalisation and transformation will continue, despite these challenging times.«

In light of the global uncertainty prevailing in the markets, it is again difficult at present to offer a medium-term outlook. All for One Group is budgeting for robust organic sales growth over the coming years in the mid-single-digit percentage range (depending on future inflation levels, among other things) that will be supplemented by inorganic growth in areas of the portfolio offering future promise. The EBIT margin before M&A effects (non-IFRS) is expected to be in a range between 7% and 8% by the financial year 2025/26.

All for One Group SE will be publishing its finalised consolidated financial statements for financial year 2021/22 and its sustainability report as scheduled on 14 December 2022 to coincide with the financial statements press conference.