Company Announcement no. 36/2022
Q2 2022 highlights- Total order intake was
EUR 17.0m (EUR 30.2m in Q2 2021). -
Strategic agreement signed with Challenger to launch a new stand-alone company to provide investment administration services.
-
Revenue was
EUR 116.0m , a decrease of 2.3% compared with a relatively strong Q2 2021. -
EBIT was
EUR 6.2m (EUR 30.0m in Q2 2021) and the EBIT margin was 5.4% (25.2% in Q2 2021). -
Net profit was
EUR 9.3m (EUR 21.3m in Q2 2021). -
User conference held in Nice in Q2 2022 with more than 500 clients and partners participating.
-
Appointment of Michael Bjergby as new CFO with start date no later than
January 1, 2023 .
H1 2022 highlights- Annual Recurring Revenue (ARR) for the last twelve months was
EUR 294.4m , an increase of 11.9% when compared with the period Q3 2020-Q2 2021. ARR for the last twelve months was equivalent to 59.1% of reported revenue for the last twelve months compared with 55.4% for the period Q3 2020 to Q2 2021 equivalent. -
Revenue was
EUR 230.7m , an increase of 0.9% compared with H1 2021. -
An operating model restructuring program was initiated in H1 2022 to ensure that
SimCorp has the right structure and people as it transforms to a SaaS company. One-off consultancy and redundant costs of EUR 5.7m related to the program were incurred in H1 2022. -
Exceptional costs of
EUR 2.1m were incurred in H1 2022 to support our Ukrainian colleagues and their families. -
EBIT was
EUR 21.7m (EUR 53.9m in H1 2021) and the EBIT margin was 9.4% (23.6% in H1 2021). The lower EBIT and EBIT margin were primarily due to lower license revenue, exceptional and one-off costs incurred, and investments in the future, including investments in new SaaS operations and solutions. -
Net profit was
EUR 22.6m (EUR 41.5m in H1 2021). -
Order intake was
EUR 43.0m (EUR 42.8m in H1 2021). -
At
June 30, 2022 , the order book amounted to EUR 81.7m , an increase of EUR 29.6m when compared with the order book at June 30, 2021 , and an increase of EUR 8.8m when compared with the order book at December 31, 2021 . -
Free cash flow was
EUR 30.2m compared with EUR 55.9m in H1 2021, due to lower profit and timing of payments.
Subsequent events- The
EUR 20.0m share buy back program was completed on July 29, 2022 . SimCorp will not initiate additional share buy backs in H2 2022 in view of planned investments, including in the strategic business partnership with Challenger.
Financial guidance 2022SimCorp maintains its expectations for 2022 as announced in its Annual Report 2021, i.e. the expectations for 2022 are to grow revenue in local currencies by between 7% and 12%, and to grow Annual Recurring Revenue (ARR) in local currencies by between 10% and 15%, and to generate an EBIT margin measured in local currencies of between 23.0% and 26.0%, excluding expected exceptional costs in 2022 of EUR 3-5m in relation to supporting our Ukrainian employees and their families, and excluding expected one-off costs of EUR 8-10m related to the operating model restructuring programme.
- Annual Recurring Revenue (ARR) for the last twelve months was
EUR 294.4m , an increase of 11.9% when compared with the period Q3 2020-Q2 2021. ARR for the last twelve months was equivalent to 59.1% of reported revenue for the last twelve months compared with 55.4% for the period Q3 2020 to Q2 2021 equivalent. -
Revenue was
EUR 230.7m , an increase of 0.9% compared with H1 2021. -
An operating model restructuring program was initiated in H1 2022 to ensure that
SimCorp has the right structure and people as it transforms to a SaaS company. One-off consultancy and redundant costs ofEUR 5.7m related to the program were incurred in H1 2022. -
Exceptional costs of
EUR 2.1m were incurred in H1 2022 to support our Ukrainian colleagues and their families. -
EBIT was
EUR 21.7m (EUR 53.9m in H1 2021) and the EBIT margin was 9.4% (23.6% in H1 2021). The lower EBIT and EBIT margin were primarily due to lower license revenue, exceptional and one-off costs incurred, and investments in the future, including investments in new SaaS operations and solutions. -
Net profit was
EUR 22.6m (EUR 41.5m in H1 2021). -
Order intake was
EUR 43.0m (EUR 42.8m in H1 2021). -
At
June 30, 2022 , the order book amounted toEUR 81.7m , an increase ofEUR 29.6m when compared with the order book atJune 30, 2021 , and an increase ofEUR 8.8m when compared with the order book atDecember 31, 2021 . -
Free cash flow was
EUR 30.2m compared withEUR 55.9m in H1 2021, due to lower profit and timing of payments.
Subsequent events- The
EUR 20.0m share buy back program was completed on July 29, 2022 . SimCorp will not initiate additional share buy backs in H2 2022 in view of planned investments, including in the strategic business partnership with Challenger.
Financial guidance 2022SimCorp maintains its expectations for 2022 as announced in its Annual Report 2021, i.e. the expectations for 2022 are to grow revenue in local currencies by between 7% and 12%, and to grow Annual Recurring Revenue (ARR) in local currencies by between 10% and 15%, and to generate an EBIT margin measured in local currencies of between 23.0% and 26.0%, excluding expected exceptional costs in 2022 of EUR 3-5m in relation to supporting our Ukrainian employees and their families, and excluding expected one-off costs of EUR 8-10m related to the operating model restructuring programme.
SimCorp maintains its expectations for 2022 as announced in its Annual Report 2021, i.e. the expectations for 2022 are to grow revenue in local currencies by between 7% and 12%, and to grow Annual Recurring Revenue (ARR) in local currencies by between 10% and 15%, and to generate an EBIT margin measured in local currencies of between 23.0% and 26.0%, excluding expected exceptional costs in 2022 ofEUR 3-5m in relation to supporting our Ukrainian employees and their families, and excluding expected one-off costs ofEUR 8-10m related to the operating model restructuring programme.
I would be remiss if I failed to mention the significant contribution of our more than 240 Ukrainian colleagues during the first half of the year. I thank them for their incredible resilience and dedication, despite the terrible hardships they continue to endure. As the war drags on, we continue to hope for a resolution, and our thoughts remain with our colleagues and the Ukrainian people."
Investor presentation
At the end of the presentation there will be a Q&A session.
The presentation will be available prior to the conference call via
www.simcorp.com/en/about/investor/presentations-and-events/quarterly-and-annual-investor-meetings
Webcast details
It will be possible to follow the presentation via this link:
https://edge.media-server.com/mmc/p/jfpymzra
Telephone conference registration
Participants are required to register in advance of the conference using the link provided below. Upon registering, each participant will be provided with Participant Dial In Numbers, and a unique Personal PIN.
Online registration: https://register.vevent.com/register/BI5af59555f28f4c2fbfec287365ed8dcb
Enquiries regarding this announcement should be addressed toInvestor contacts
Media contacts
Tobias Brun-Falkencrone, Group Communications Director,
https://news.cision.com/simcorp/r/simcorp-reports-arr--ltm--growth-of-11-9--in-h1-2022--as-the-journey-towards-being-a-saas-provider-p,c3613166
https://mb.cision.com/Main/20103/3613166/1613958.pdf
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