CANCOM : reaches double-digit growth rates and strengthens group liquidity

CANCOM reaches double-digit growth rates and strengthens group liquidity

- Revenue, EBITDA, EBIT and profit for the period grow with double-digit percentage rates in 2017

- Acquisitions strengthen both group segments

- Successful Working Capital Management leads to enormously improved group liquidity

- Further dynamic growth to be expected for 2018

Munich, Germany, 28 March 2018 - CANCOM Group has clearly achieved all self-defined objectives in the fiscal year 2017. The economic output was improved significantly and several acquisitions contributed to the strategic evolution of the group. Group revenue increased by 13.5 percent to EUR 1,161.2 million (previous year: EUR 1,023.1 million). The group's gross profit was improved by 9.9 percent to EUR 321.7 million (previous year: EUR 292.7 million). EUR 84.5 million of group EBITDA represented a plus of 15.9 percent (previous year: EUR 72.9 million) and EBITDA margin climbed from 7.1 percent in the previous year to 7.3 percent.
With EUR 60.5 million the group EBIT also came out above previous year's figure by a significant 17.9 percent (previous year: EUR 51.3 million). CANCOM closed the very successful fiscal year 2017 with a profit for the period of EUR 40.0 million, an improvement by 18.9 percent compared to the previous year (previous year: EUR 33.7 million).

Strategic investments strengthen business model and profitability

Besides the pure improvement of the economic output the management strengthened the business model by several acquisitions in 2017. The future-oriented cloud and managed services business was enhanced strategically by new capabilities. In addition the market penetration in the north of Germany in the field of IT infrastructure and services was improved. Large scale investments in the logistics and service infrastructure of the new Service Factory at the branch in Jettingen-Scheppach, Germany, were conducted, too.

"Especially the expansion of the cloud and managed services business raised the portion of recurring revenues and simultaneously increased our EBITDA margin. We want to swiftly follow this successful path further on. This can already be seen in our new acquisition in 2018", said Klaus Weinmann, CEO of CANCOM SE.

As a prerequisite for the further organic and inorganic growth CANCOM conducted a working Capital optimisation programme in the past fiscal year. As of the reporting date 2017 CANCOM Group owned cash and cash equivalents amounting to EUR 157.6 million (31.12.2016: EUR 63.6 million).

Both group segments contribute to the growth

The successful business development in the year 2017 was underpinned by both group segments. The group segment IT Solutions contributed with a revenue increase of 12.9 percent to EUR 978.8 million to the group's growth (previous year: EUR 866.9 million). The segment EBITDA could be improved by 2.6 percent to EUR 50.5 million (previous year: EUR 49.2 million) with an EBITDA margin of 5.2 percent (previous year: 5.7 percent).
In the group segment Cloud Solutions the revenue grew by 16.8 percent to EUR 182.3 million (previous year: EUR 156.1 million). The segment EBITDA increased by 37.6 percent to 43.2 million. (previous year: EUR 31.4 million) and the EBITDA margin was 23.2 percent (previous year: EUR 20.1 percent).

Forecast 2018

Against the background of the group's favorable positioning in the IT market overall and in its growth segments the Executive Board expects a further significant increase in revenue and gross profit in the fiscal year 2018 compared to the previous year and provided that the demand for IT products and services remains steady. The Executive Board expects as well a significant increase in the consolidated EBITDA and EBIT in 2018, whereby all objectives refer to the organic business development.

For the group segment IT Solutions a significant increase of revenue, gross profit as well as EBITDA and EBIT is expected. For the group segment Cloud Solutions the Executive Board also expects a significant increase of revenue, gross profit, EBITDA and EBIT, with the increase being greater than the growth in the segment IT Solutions.

About CANCOM

As Digital Transformation Partner, CANCOM guides businesses into the digital future. The CANCOM Group's business-oriented IT solution range encompasses consulting, implementation and services. Clients benefit from an extensive expertise and an innovative portfolio that covers business IT requirements for a successful digital transformation with smart business solutions and services in IT trends such as cloud computing, analytics, enterprise mobility or security. The CANCOM Group operates internationally and its more than 2,900 employees worldwide together with its powerful partner network ensure market presence and proximity to clients in, amongst others, Germany, Austria, Switzerland, Belgium, the United Kingdom and the United States. CANCOM Group is headed by Klaus Weinmann (Founder and CEO), Rudolf Hotter (COO), Thomas Volk (President and General Manager) and Thomas Stark (CFO). The company's headquarter is in Munich, Germany. CANCOM SE is listed on the Frankfurt Stock Exchange in the index TecDAX (ISIN DE0005419105) and the group achieves an annual turnover of more than one billion euros.

Contact:

Sebastian Bucher
Manager Investor Relations
+49 (0)89 540545193
sebastian.bucher@cancom.de