SimCorp reports revenue growth of 21% and EBIT margin of 28% in H1 2019 with eight new clients signed and has upgraded its 2019 financial guidance

Company announcement no. 41/2019

Q2 2019 highlights:

• A strong Q2 2019 with signing of four new SimCorp Dimension and two new SimCorp Coric orders, led to reported Q2 2019 revenue of EUR 109.5m. When compared with Q2 2018, an increase of 32.0%, and measured in local currencies, an increase of 30.1%.
• EBIT of EUR 32.3m and EBIT margin of 29.5% compared with EBIT of EUR 14.0m and EBIT margin of 16.9% in Q2 2018. Measured in local currencies EBIT margin was 29.0%.
• Order intake was EUR 22.6m, an increase of EUR 6.4m or 39.5% compared with Q2 2018.

H1 2019 highlights:

• Reported revenue was EUR 209.3m, an increase of 21.1% when compared with H1 2018. Measured in local currencies, SimCorp achieved revenue growth of 19.2% in H1 2019.
• Reported EBIT was EUR 58.7m compared with EUR 37.4m in H1 2018. Reported EBIT margin was 28.0% compared with 21.6% in H1 2018, driven by license revenue growth from new client agreements. Measured in local currencies, EBIT margin was 27.6%.
• Net profit was EUR 43.3m compared with EUR 27.5m in H1 2018.
• Order intake was EUR 44.0m, an increase of EUR 13.8m or 45.7% compared with H1 2018. Six new SimCorp Dimension and two new SimCorp Coric license deals were signed in H1 2019. Both SimCorp Coric deals and one of the SimCorp Dimension deals – with the pension plan of Hydro-Québec, a Canadian public utility company – were signed in the strategically important North American market. Two of the other SimCorp Dimension deals were signed in the UK, for some years a challenging market.
• At June 30, 2019, the order book amounted to EUR 45.9m, an increase of EUR 0.4m compared with the order book at year-end 2018. Revenue from the significant new  license agreement with an Asian investment company, signed in Q4 2018, which was originally expected to be recognized in Q2 2019, will be recognized in Q3 as this was when the conditions were met.
• Free cash flow was EUR 44.8m compared with EUR 45.9m in H1 2018.
• SimCorp entered Q3 2019 with EUR 346m of the full year’s revenue signed, an improvement of EUR 50m or 16.9% compared with same time last year.
• On June 6, 2019 SimCorp entered into an agreement to acquire AIM Holdings SCA and its subsidiaries (“AIM Software”). The closing completed on August 1, 2019. The consideration paid was EUR 62.9m, of which EUR 2.9m related to net cash items taken over. The acquisition was financed by own cash reserves and extended credit facilities. As the acquisition of AIM Software took effect from August 1, 2019, AIM Software is not included in the H1 2019 numbers. With the acquisition, SimCorp strengthens its strategic position and competitiveness in the market within the increasingly important business area of data management.
• The initiated EUR 12.5m share buyback (“Safe Harbour”) program was completed on August 22, 2019. The Company will not initiate a new “Safe Harbour” program in 2019 due to the acquisition of AIM Software.
• Christian Kromann joined Executive Management Board as Chief Operating Officer (COO) on August 1, 2019.
• The Board has today appointed Adam Warby as new Audit Committee member.

Financial guidance 2019

• SimCorp has upgraded its expectations for revenue growth measured in local currencies for 2019 to be between 12% and 17% (previously 10%-15%), of which approximately 2% is related to the acquisition of AIM Software. SimCorp has also upgraded its expectations for EBIT margin measured in local currencies for 2019 to be between 25.0% and 28.0% (previously 24.5%-27.5%), including 1%-point negative impact from the acquisition of AIM Software. Prior to the acquisition of AIM Software announced on June 6, 2019, SimCorp expected revenue to grow between 8% and 13% and the EBIT margin to be between 25.5% and 28.5%, measured in local currencies.

Klaus Holse, SimCorp CEO comments: “We continue to welcome new customers to the SimCorp community, driving solid revenue growth in the first six months of the year. The pipeline for the rest of the year  looks healthy. We are also excited to have welcomed our new colleagues from AIM Software and we are eager to start pursuing the data management opportunities together.”

Investor presentation
SimCorp’s Executive Management Board will present the report at a conference call Friday, August 23, 2019 at 11:00 am (CET). Please use any of the following phone numbers to dial in to the conference call:

At the end of the presentation there will be a Q&A session.


It will also be possible to follow the presentation via this link:
https://edge.media-server.com/mmc/p/w8wy8sw2

The presentation will be available prior to the conference call via SimCorp’s website http://www.simcorp.com/en/about/investor/presentations-and-events/quarterly-and-annual-investor-meetings.

The Annual Report 2018 is available via this link
https://www.simcorp.com/annual-report-2018

Enquiries regarding this announcement should be addressed to:
Investor contacts:
Klaus Holse, Chief Executive Officer, SimCorp A/S (+45 3544 8802, +45 2326 0000)
Michael Rosenvold, Chief Financial Officer, SimCorp A/S (+45 3544 8800, +45 5235 0000)
Anders Hjort, Head of Investor Relations, SimCorp A/S (+45 3544 8822, +45 2892 8881)

Media contact:
Anders Crillesen, Group Communications Director, (+45 3544 6474, +45 2779 1286)

Attachment

• 2019-08-23_Company_Announcement H1 2019