SNP Schneider Neureither & Partner : Publishes Operating Results for the First Nine Months of the 2017 Fiscal Year

SNP | Corporate News

SNP AG Publishes Operating Results for the First Nine Months of the 2017 Fiscal Year

- Group revenue rises to EUR 81.0 million in the first nine months (+40.8% year-over-year)

- Achievement of strategic goals exceeds target

- Adjusted EBITDA margin: approximately +4%; unadjusted: -0.6%

- Investments in growth and one-time expenses impact the earnings situation

Heidelberg, Germany, October 27, 2017 - SNP AG is continuing on its successful course of growth. In the first nine months of the current fiscal year, the SNP Group was able to increase revenue by 40.8% to EUR 81.0 million (previous year: EUR 57.5 million). As a result, the Group revenue generated after nine months of the current fiscal year is already close to the level of total revenue achieved in the previous year.

At the same time, the company achieved its strategic goals, and, in doing so, exceeded its targets. As part of the internationalization strategy, SNP made key acquisitions in various regions of the world, and, with that, significantly increased its delivery capacity. By doing so, the company maintained its course of positioning itself early for the worldwide boom in demand for transformation solutions that is already underway as a result of digitalization. As a result, the earnings performance in the first nine months of 2017 was strongly affected by extraordinary one-time expenses and investments in growth of approximately EUR 4 million. Adjusted for these expenses, the EBITDA and EBIT margins were approximately 4% and 1%, respectively.

Unadjusted, the SNP Group is recording negative earnings before interest, taxes, depreciation and amortization (EBITDA) of EUR -0.5 million in the first nine months of the fiscal year (previous year: EUR 6.3 million); operating earnings (EBIT) amounted to EUR -2.6 million in the same period (previous year: EUR 5.2 million). These figures coincide with an EBITDA margin of -0.6% (previous year: 10.9%) and an EBIT margin of -3.2% (previous year: 9.0%).

"Our prospects for the future and the potential in the transformation market are excellent. SNP is growing in new ways both in regard to sales and market presence. We are in the process of becoming the global standard for software-based data transformation. With CrystalBridge^(R), we have brought a new product to the market that will considerably increase the degree of automation in transformation projects. This means greater transparency and shorter project times for our clients. The market clearly recognizes our strengths and offerings: No large transformation is implemented without us participating in the bidding process," says Dr. Andreas Schneider-Neureither, CEO of SNP AG.

Forecast

Due to the unchanged positive situation for orders and projects, as well as Group revenue of EUR 81.0 million at the end of the first nine months, the Executive Board is increasing the forecast for Group revenue to around EUR 120 million for the current fiscal year (previous revenue forecast: EUR 110 million).

In addition, the Executive Board is forecasting a generally balanced operating result for the 2017 fiscal year (EBIT; previous earnings forecast: EBIT margin of 7% to 12% for the 2017 fiscal year). This is due to the earnings performance in the first nine months of the 2017 fiscal year that was strongly affected by one-time extraordinary expenses and investments in growth, as well as lower-than-expected revenue from software licensing.

There are already signs of significantly increasing demand for the SNP Group's services and software solutions in the next few years. The company is therefore currently making investments in order to prepare for the foreseeable worldwide boom resulting from digital transformation, and thereby to be counted among the notable winners from this development.

An unchanged goal of the SNP Group is to establish the global standard for software-based data transformation. The Executive Board is therefore pursuing the principle goal of consistent revenue growth for the Group as a whole.

Additional Key Figures for the First Nine Months of the Fiscal Year in Detail:

At the end of the first nine months of the fiscal year, the company reported Group revenue of EUR 81.0 million (previous year: EUR 57.5 million). Of the total revenue increase of EUR 23.5 million, recently acquired companies accounted for EUR 20.6 million. Adjusted for this acquisition effect, organic revenue growth was EUR 2.9 million, or approximately 5%.

On the segment side, the Professional Services division, which primarily includes consulting services, contributed EUR 67.2 million (previous year: EUR 48.0 million) to revenue in the first nine months of the current fiscal year.

The Software division (including maintenance) generated revenue of EUR 13.9 million (previous year: EUR 9.5 million) in the first nine months of the fiscal year. This corresponds to an increase of EUR 4.3 million, or 45.7%, from the comparable nine-month period of the previous year.

Compared to December 31, 2016, total assets increased by EUR 59.3 million to EUR 147.8 million, primarily as a result of the assumption of additional equity and debt capital. The equity ratio subsequently decreased from 54.9% to 40.8%. Cash and cash equivalents rose to EUR 33.3 million as of September 30, 2017.

Additional details can be found in the extensive Q3 interim report:

https://www.snp-ag.com/en/investor-relations/financial-publications/financial-reports/2017/

About SNP

SNP supports organizations in adapting their business models and using new technologies. SNP software and services make it easy to implement business or technical modifications to business applications.

CrystalBridge^(R) and Transformation Backbone^(R) together with SAP LT are the world's leading software suite for data transformations that automatically analyzes, implements and tracks changes to IT systems. As a result, they offer clear qualitative advantages, while significantly reducing the time and expense involved in transformation projects. The SNP Group has over 1,300 employees worldwide.

Headquartered in Heidelberg, the company plans to generate revenue of approximately EUR 120 million in 2017. SNP's customers are global corporations from all industries. SNP was founded in 1994 and has been publicly traded since 2000. As of August 2014, the company is listed on the Prime Standard segment of the Frankfurt Stock Exchange (ISIN DE0007203705).

Further information is available at www.snp-ag.com

Investor Relations Contact:

Marcel Wiskow
Tel: +49 6221 6425-637
Fax: +49 6221 6425-470
Email: investor.relations@snp-ag.com
https://www.snp-ag.com/investor-relations/