DGAP-News: SNP SE Increases Revenue and Order Entry in the First Quarter of 2020

SNP SE Increases Revenue and Order Entry in the First Quarter of 2020

- Group revenue increases to € 34.4 million in Q1 2020 (+19.5% compared with the previous year)

- Software is main growth driver (+45.7% compared with the previous year)

- Due to investments made to hedge growth, EBIT in the first quarter of 2020 is lower than previous year

- Order entry increases by about 23%, order backlog more than doubles

- Management updates revenue and earnings forecast as a result of the impact of COVID-19

Heidelberg, April 30, 2020 - SNP Schneider-Neureither & Partner SE got off to a strong start in the 2020 fiscal year. As the company just announced, the quarterly revenue increased by 19.5% to € 34.4 million in the first three months of the current fiscal year compared with the same period in the previous year (Q1 2019: € 28.8 million). This is due largely to significantly increased demand in the Software business segment. Specifically, revenue in this segment increased 45.7% to € 9.1 million (Q1 2019: € 6.2 million). Development in the Services business segment was also positive, with a revenue increase of 12.3% to € 25.3 million in the first quarter (Q1 2019: € 22.5 million). Investments in the expansion of capacity which were made to hedge growth affected the operating performance (EBIT) so that, at € -4.0 million in the first quarter, it was € 0.7 million lower than the previous year (Q1 2019: € -3.3 million). Net income of € -3.4 million in the first quarter of 2020 was also under the previous year's figure (Q1 2019: € -2.8 million).

"We had a good start to 2020. The level of order entries and the order backlog both developed positively in the first quarter. We have thus laid a good foundation for further growth," says Dr. Andreas Schneider-Neureither, CEO of SNP SE. "The disproportionately strong growth in our Software business segment in particular shows that our strategy is developing successfully. However, we do expect to see a stronger impact of the COVID-19 pandemic on our business. We are nonetheless convinced that the digitalization of entire business models and extensive transformations will gain worldwide momentum once the acute phase of the coronavirus crisis has passed."

Order entries increased in the first quarter of 2020 by about 23% to € 47.7 million (Q1 2019: € 38.9 million); March was the strongest individual month. € 16.7 million, or 35%, of this was attributable to the Software business segment (Q1 2019: € 13.3 million, or 34%). € 31.0 million, or 65%, of the order entry volume was attributable to the Services business segment (Q1 2019: € 25.6 million, or 66%).

Order entries connected with SAP S/4HANA projects were particularly strong, tripling to € 11.1 million (Q1 2019: € 3.2 million). Altogether, upcoming SAP S/4HANA projects now represent nearly a quarter of the entire order entry volume of the SNP Group. At the close of the first quarter, the volume of order entries reached € 106.2 million, twice as high as at the end of the comparable period in 2019.

As of March 31, 2020, the Group had 1,411 employees (March 31, 2019: 1,272). This represents an increase of approximately 11%.

Updated Forecast

In view of the expected impact of the COVID-19 pandemic, the management has updated its forecast for the 2020 fiscal year. While the company completed the first quarter of 2020 with a significant increase in revenue, management currently assumes that the effects of the pandemic will have a significantly greater impact in the second quarter in particular, thus resulting in a slowdown in growth by comparison with the previous year. Since early April, demand has declined in the automotive and aircraft industries, for instance. Nonetheless, SNP SE continues to expect growth in revenue compared to the previous year. Its updated forecast envisages Group revenue of between € 145 million and € 170 million (previously: between € 175 million and € 185 million). The EBIT margin is expected to fall within the mid-single-digit percentage range (previously: between 6.5% and 8.5%). Following a weaker second quarter of the current fiscal year, SNP SE's management expects conditions to improve during the third quarter.

Additional details can be found in the extensive Q1 interim report:

https://www.snpgroup.com/en/financial-publications

A teleconference will be held today (April 30, 2020) at 2:00 p.m. CET. The dial-in number may be found in the Investor Relations area of SNP's website:

https://www.snpgroup.com/en/investor-relations

About SNP


SNP is a world-leading provider of software for managing complex digital transformation processes. Instead of traditional IT consulting in the ERP environment, SNP offers an automated solution using specially developed software: The Business Transformation Platform CrystalBridge^(R) and the SNP BLUEFIELD(TM) approach allow customers to restructure and modernize their IT landscapes much more quickly and reliably as well as migrate to new systems or cloud environments more securely. This gives customers clear qualitative advantages while at the same time reducing their time and costs.

The SNP Group has around 1,400 employees worldwide. The company is headquartered in Heidelberg, Germany, and generated group revenues of around EUR 145 million in the 2019 fiscal year. It serves multinational companies in all industries. SNP was established in 1994, went public in 2000, and has been listed in the Prime Standard segment of the Frankfurt Stock Exchange since August 2014 (ISIN DE0007203705) and was included in the SDAX^(R) in March 2020. Since 2017, the company has been trading as a European company (Societas Europaea/SE).

More information is available at www.snpgroup.com

Contact Investor Relations:

Christoph Marx

Head of Investor Relations

Telephone: +49 6221 6425-172

Marcel Wiskow

Director Investor Relations

Telephone: +49 6221 6425-637

E-Mail: [email protected]