KPS : Annual Report 2021-2022

KPS

ANNUAL REPORT

OVERVIEW OF THE CONSOLIDATED RESULTS

OVERVIEW OF THE CONSOLIDATED RESULTS

in EUR million	2021/2022	2020/2021
Group sales	179.5	158.0
EBITDA	21.7	21.6
EBIT	14.3	13.4
Group earnings	9.5	8.7
Earnings per share (in EUR)	0.26	0.23
Cash and cash equivalents	6.1	8.1
Financial liabilities	21.0	21.3

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Table of Contents

Overview of the Consolidated Results	2
TO THE SHAREHOLDERS	4
Letter from the Executive Board	5
Report of the Supervisory Board	6
KPS and the Capital Market	10
MANAGEMENT REPORT	15
1	Fundamentals of the Group	16
2	Economic Report of KPS Group	21
3	Risk and Opportunity Report	37
4	Forecast Report	47
5	Remuneration Report	50
6	Disclosures relevant to takeovers pursuant to Article 315	51
	para. 4 German Commercial Code (HGB) and the
	explanatory report for financial year 2021/2022
7	Legal disclosures	54
FINANCIAL STATEMENTS	56
Income Statement	56
Comprehensive Income	57
Consolidated Statement of Financial Position	58
Consolidated Cash Flow Statement	60
Consolidated Statement of Changes in Equity	62
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS	63
Notifications-pursuant-to-Article-160 para, 1 (() German Stock	129
Corporation Act (AktG)
Development of the fixed assets (Gross Presentation)	128
Declaration by the legal representatives	130
Alternative Performance Measures for KPS Group	131
Independent Auditor's Report	133

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TO THE SHAREHOLDERS

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TO THE SHAREHOLDERS

THE CEO OF KPS

Ladies and Gentlemen, Dear Shareholders,

In the past financial year, KPS experienced a significant revival in demand along the entire value chain. We were able to increase our sales by 13.6% to EUR 180 million. All areas - strategy consulting, e- commerce solutions and transformation projects - showed pleasing growth. In our domestic market of Germany, we managed to turn the tide and achieved an increase in sales of around eleven percent. In our foreign target markets, the business situation remained robust in financial year 2021/2022. We were able to increase our sales in our European target markets by nearly 17%. European sales (ex Germany) now account for 58% of Group sales. We have thus persistently and successfully implemented our internationalisation strategy, because only a few years ago we did not generate any significant sales contributions abroad.

Due to the significantly higher project volume, the use of service providers and freelancers has increased. At the same time, we have increased the number of our employees in order to be prepared for future growth. In addition, KPS Group was unable to escape the general trend towards salary increases, particularly for IT and software staff. Despite these factors, EBIT increased by around 6.7 percent to EUR 14.3 million and earnings after taxes rose by 9.4 percent.

The appalling Russian war in Ukraine is causing indescribable human suffering and senseless loss of life. Negative economic effects sometimes appear to be secondary. KPS does not maintain business relationships in either Russia or Ukraine. We also have no near-shore locations or contracts in these countries. The effects were hardly noticeable on the demand side in the past financial year. However, the risk situation for KPS has increased. Exorbitantly rising energy costs, general price increases and a slowdown in the economy are weighing on consumption and could impair willingness to invest in transformation projects.

Although the conditions for the new financial year 2022/2023 have clouded over, we are optimistic about the future. With our products, our expertise in digital transformation and our international orientation, we see ourselves well equipped to successfully master the challenges. In financial year 2022/2023, we expect to see an increase in sales in the mid-single-digit percentage range compared to 2021/2022. For EBITDA, we forecast growth in the high single-digit to low double-digit percentage range.

We would like to thank you for your trust and would be delighted to have you continue to accompany KPS on its journey into the future.

Munich, January 2023

Your Executive Board

Leonardo Musso

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