All for One Group SE – Final figures for financial year 2021/22 confirmed // Sales up 21% // Guidance 2022/23 unchanged // New cloud products to boost modernisation of the midmarket

Final results and guidance:

• Sales: EUR 452.7 million (up 21% year on year); recurring revenues increase by 19%

• SAP transformation: CONVERSION/4 business more than doubled

• Modernisation boost from new SAP S/4HANA cloud products specially for the midmarket
• Earnings under pressure due to Covid-19, economic situation, inflation and efforts to integrate four acquisitions
• EBIT before M&A effects (non-IFRS) increases by 8% to EUR 27.3 million; EBIT margin before M&A effects (non-IFRS) at 6.0%
• EBIT: EUR 17.6 million (down 15% year on year); EBIT margin: 3.9% (prior year: 5.5%)
• Dividend proposal: EUR 1.45 per share (prior year: EUR 1.45 per share)
• Second comprehensive sustainability report to be published on 14 December 2022

Filderstadt, 9 December 2022 – Following the supervisory board meeting at which the financial statements were approved, All for One Group SE, leading consulting and IT group, publishes its final (IFRS) figures for the period from 1 October 2021 to 30 September 2022, together with its second sustainability report on 14 December 2022.

The preliminary figures have been confirmed. Sales in financial year 2021/22 increased significantly by 21% to EUR 452.7 million, while EBIT declined by 15% to EUR 17.6 million. In contrast, EBIT before M&A effects (non-IFRS) increased by 8% to EUR 27.3 million. The strategic performance metric of recurring revenues – a key indicator of future sales and cash flow growth potential – increased by 19% to EUR 240.5 million and accounts for 53% of total revenues.

Sales growth was enhanced partly by the integration of the companies acquired in financial year 2021/22 – All for One Poland (formerly: SNP Poland), ASC Group, blue-zone and POET Group – and partly by organic growth of 7%. Continued demand for digitalisation services, the trend towards cloud transformation and enhanced focus on the product business will drive the future growth of the Group. All for One Group also intends to further grow business by supplementing the existing portfolio with innovative products such as FlowOne, which integrates the flow of information between SAP and Microsoft systems, or the new SAP S/4HANA cloud model exclusively for All for One Group's customers in the midmarket.

»A lot of midmarket companies would like to combine their migration to SAP S/4HANA with a move to the cloud. To help them achieve this, we can now offer a new and attractive package from a single source that is also affordable and will really boost modernisation!«, explains Michael Zitz, new Co-CEO of All for One Group.

Financial year 2021/22 featured four acquisitions that were key to implementing the »strategy offensive 2022« to transform the Group into a full digitalisation provider, as they provide a strong and broad base of IT and consulting services and specifically expand the customer base. At the same time, lower revenues as a result of a greater number of days off sick in the wake of the pandemic, projects that were deferred at short notice, prices soaring in the wake of inflation, and acquisition-related costs all had a disproportionately adverse effect on earnings.

Although the Group achieved EBITDA of EUR 47.1 million (2020/21: EUR 42.1 million), EBIT was only EUR 17.6 million (minus 15%). The EBIT margin was 3.9% (2020/21: 5.5%). Moving forward, the key performance indicator will be EBIT before M&A effects (non-IFRS), which shows the »real« operating result adjusted for acquisition-related external expenses and income and acquisition-related amortisation, depreciation and impairment on intangible assets. Despite the unplanned charges, this metric increased by 8% to EUR 27.3 million compared to the prior year. EBT totalled EUR 15.9 million (minus 18%), while the result for the period amounted to EUR 11.0 million (minus 18%), and earnings per share to EUR 2.20 (minus 18%).

As CFO Stefan Land emphasises: »We place great importance on dividend continuity and letting our shareholders participate in the company profits!« Accordingly, the Group will again be proposing payment of a dividend of EUR 1.45 per eligible share to the annual general meeting on 16 March 2023. Relative to Group earnings after tax of EUR 11.0 million in financial year 2021/22 (2020/21: EUR 13.5 million), this equates to a distribution quota of 65% (2020/21: 53%).

In addition to the solid structure of its balance sheet, the Group was able to secure attractive long-term financing when it successfully placed EUR 40.0 million in promissory note loans in May 2022. The balance sheet total increased by 28% to EUR 339.9 million as a result of the acquisitions. Cash and cash equivalents rose from EUR 75.0 million to EUR 77.5 million. Cash flow from operating activities decreased to EUR 28.1 million (2020/21: EUR 34.8 million). The equity ratio was 29% (30 Sep 2021: 35%) as of 30 September 2022. The headcount has increased substantially year on year to 2,758 employees as of 30 September 2022 (30 Sep 2021: 1,991). The health index was 96.6% (2020/21: 97.4%).

»Future areas of focus include expanding and involving the regional delivery centers more closely in business operations, expanding the Microsoft business and improving margins following completion of the integration of the newly acquired companies«, according to Michael Zitz.

Guidance

In light of unpredictable influences outside the Group's control, the management board believes that the publication of reliable guidance is only possible to a very limited extent at the present time. Further economic setbacks due to rising inflation, uncertainties surrounding energy supplies, the pandemic, supply chain problems facing customers, and the war in Ukraine cannot be ruled out by any means. They could result in lower demand, further project postponements and increased defaults and insolvencies among the customer base, and thus jeopardise guidance.

The management board is holding firm to the guidance published on 21 November 2022 and predicts sales of between EUR 470 million and EUR 500 million (2021/22: EUR 452.7 million). EBIT before M&A effects (non-IFRS) is expected to be in a range between EUR 27.5 million and EUR 30.5 million.

All for One Group SE will be publishing its finalised consolidated financial statements for financial year 2021/22 and its sustainability report as scheduled on 14 December 2022 to coincide with the financial statements press conference.

About All for One Group SE

All for One Group increases the competitiveness of companies in a digital world. The Group unites strategic and management consulting, process consulting, industry insight and technology expertise in combination with IT consulting and services under one roof. Together with market leading business software solutions based on SAP, Microsoft and IBM, and more than 2,700 experts, All for One Group SE orchestrates all aspects of competitive strength: strategy, business model, customer & employee experience, new work, big data & analytics, but also IoT, artificial intelligence or cybersecurity & compliance and intelligent ERP as the digital core. The leading consulting and IT group supports more than 3,000 clients from Germany, Austria, Poland and Switzerland in their business transformation.

All for One Group SE achieved Group sales of EUR 453 million in financial year 2021/22 and is listed in the Prime Standard on the Frankfurt Stock Exchange.