DGAP-News: CANCOM: CANCOM closes financial year 2021 with record EBIT growth of 31 percent and proposes dividend increase to EUR 1.00

CANCOM: CANCOM closes financial year 2021 with record EBIT growth of 31 percent and proposes dividend increase to EUR 1.00

- Group revenue rises very significantly by 10.9 percent to EUR 1,304.5 million.

- Group EBITDA of EUR 121.5 million 21.6 percent above previous year, EBITDA margin rises to 9.3 percent.

- Group segment Cloud Solutions grows by 12.2 percent and Group segment IT Solutions by 10.6 percent.

- Annual Recurring Revenue increases by 24.0 percent to EUR 181.8 million.

- Executive Board forecasts very significant growth in 2022 and proposes dividend increase to EUR 1.00 per share.

Munich, Germany, 29 March 2022 - CANCOM Group achieved revenue growth of 10.9 percent in the financial year 2021 with Group revenue of EUR 1,304.5 million (previous year: EUR 1,176.2 million*). Both the IT project business (IT Solutions) and the As-a-Service business (Cloud Solutions) achieved double-digit growth rates and thus contributed to the very significant increase in revenue. At EUR 121.5 million, Group EBITDA was even 21.6 percent above the comparable figure (previous year: EUR 99.9 million*). The EBITDA margin rose accordingly to 9.3 percent (previous year: 8.5 percent*). As announced when the preliminary figures were presented in February, the CANCOM Group's EBIT of EUR 77.4 million was 30.5 percent up on the previous year (previous year: EUR 59.3 million*).

"Despite supply bottlenecks for IT components and the existing exceptional situation of the Corona pandemic, the CANCOM business model is producing record highs in growth and profitability. This makes me confident that we will also master the new year 2022 very well," said Rudolf Hotter, CEO of CANCOM SE.

On the basis of the current business success, the Executive Board and Supervisory Board of CANCOM SE have decided to propose to the Annual General Meeting that the dividend be increased to EUR 1.00 per share (previous year: EUR 0.75).

Cash flow from operating activities increased to EUR 72.3 million in the 2021 financial year (previous year: EUR 68.2 million). Cash and cash equivalents amounted to EUR 653.0 million (previous year: EUR 338.4 million), plus treasury shares with a total market value of EUR 47.8 million as at 31 December 2021.

Record profitability in the Cloud Solutions segment

In the Cloud Solutions segment, revenue in the 2021 financial year rose to EUR 238.4 million, an increase of 12.2 percent (previous year: EUR 212.4 million*). At EUR 80.1 million, EBITDA was 18.8 percent higher than in 2020 (previous year: EUR 67.4 million*). With an EBITDA margin of 33.6 percent, profitability improved again despite the high baseline (previous year: 31.8 percent*). Annual Recurring Revenue (ARR) from Managed Service contracts rose by 24.0 percent to EUR 181.8 million (previous year: EUR 146.6 million*).

Although the worldwide supply bottlenecks for IT components in the 2021 financial year had a negative impact particularly on revenue development in the IT Solutions segment, CANCOM was able to increase segment revenue very significantly by 10.6 percent to EUR 1,065.7 million (previous year: EUR 963.7 million*), thanks to its good market position. EBITDA in the segment rose by 11.9 percent to EUR 58.7 million (previous year: EUR 52.4 million*). The EBITDA margin was thus 5.5 percent (previous year: 5.4 percent*).

Revenue in the fourth quarter of 2021 exceeds the previous year's high figure

In the fourth quarter alone, the CANCOM Group exceeded the previous year's already high figure for Group revenue. At the end of the financial year, quarterly revenue of EUR 356.6 million was recorded (previous year: EUR 336.9 million*). Group EBITDA was EUR 36.9 million (previous year: EUR 39.3 million*).

In the Cloud Solutions segment, revenue in the fourth quarter rose to EUR 61.5 million (previous year: EUR 42.0 million*), EBITDA was EUR 21.0 million (previous year: EUR 21.4 million*). In the IT Solutions segment, quarterly revenue was EUR 294.9 million (previous year: EUR 294.8 million*) and EBITDA was EUR 20.6 million (previous year: EUR 21.7 million*).

Optimistic forecast despite difficult environment

For the financial year 2022, the Executive Board expects the dynamic business development to continue. Revenue, gross profit, EBITDA and EBITA of the CANCOM Group are expected to increase very significantly. In the Cloud Solutions segment, very significant growth is also expected for revenue, EBITDA and annual recurring revenue (ARR). In the IT Solutions segment, the Executive Board expects very significant revenue growth and significant EBITDA growth.

In connection with the forecast, however, the Executive Board also points to a number of current factors that could influence business development in the course of the year. In the view of the Executive Board, the development of the global Corona pandemic and the effects of the international sanctions as a result of the Russia-Ukraine war are particularly worthy of mention, as they have both increased the uncertainty of the overall economic development and could once again burden the international supply chains in the course of the year.

The complete Annual Report 2021 of the CANCOM Group is published on the website www. cancom.de in the Investors section.

* Note: In connection with the sale of the CANCOM UK Group, the previous year's figures have been adjusted. Information can be found in section A.7 of the consolidated financial statements.

About CANCOM

As a Digital Transformation Partner, CANCOM accompanies organizations into the digital future. CANCOM supports customers to simplify complex enterprise IT and increase their business success through the implementation of modern technology. In order to comprehensively meet the IT needs of companies, organizations, and the public sector, CANCOM delivers tailor-made IT end to end from a single source.

The CANCOM Group's range of IT solutions includes consulting, implementation, services, and the management of IT systems. Customers benefit from the extensive expertise as well as a holistic and innovative portfolio that covers the IT requirements that are necessary for a successful digital transformation. As a hybrid IT integrator and service provider, the Company provides an integrated range of services and solutions including business solutions and managed services, such as cloud computing, analytics, enterprise mobility, IT security, hosting, and As-a-Service offerings.

With more than 4,000 employees, CANCOM Group and its efficient partner network ensure market presence and customer proximity in Germany, Austria, Switzerland, Belgium and the USA. The CANCOM Group is led by Rudolf Hotter (CEO), Thomas Stark (CFO) and Rüdiger Rath (COO). The company is headquartered in Munich. CANCOM generated revenue of around EUR 1.3 billion in the financial year 2021. Its parent company CANCOM SE is listed in the MDAX and TecDAX of the Frankfurt Stock Exchange (ISIN DE0005419105).

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Sebastian Bucher

Manager Investor Relations

+49 89 54054 5193

[email protected]

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