Sales on sustainable growth path // Strong sales and operating result in 3rd quarter // One-off restructuring effects have a significantly adverse impact on earnings // Pace of S/4HANA migrations continues to increase

Unaudited results:

3rd Quarter 2022/23:

• Sales increased significantly by 11% year on year; boosted by cloud services and support plus 13% year on year; EBIT before M&A effects (non-IFRS) adjusted for restructuring expenses totalled EUR 4.5 million, an increase of 73% compared to the prior-year period (EUR 2.6 million)

9-Month Period 2022/23:

• Sales: EUR 363.8 million (plus 7% year on year); adjusted for non-recurring licence revenues plus 10%; Share of recurring revenues increases to 55%; CONVERSION/4 business almost doubled
• EBIT before M&A effects (non-IFRS) minus 44% to EUR 11.4 million (margin: 3.1%); EBIT minus 25% to EUR 10.0 million (margin: 2.7%)
• Earnings adversely affected by non-recurring restructuring expenses (EUR 6.9 million) and decline in non-recurring licence revenues (minus 27%)
• Early acquisition of outstanding 49% stake in Polish subsidiary generates non-recurring income of EUR 3.2 million
• Revised 2022/23 forecast and medium-term outlook confirmed

Filderstadt, 10 August 2023 – All for One Group SE, leading consulting and IT group, published its unaudited results for the period from 1 October 2022 to 30 June 2023 today.

3rd Quarter 2022/23

Following a start to the financial year that was dominated by uncertainty, inflation and waves of sick leave but with gradual signs of recovery and very good order books, All for One Group SE was able to increase sales in the 3rd quarter 2022/23 by 11% year on year – with cloud business growing by 13%. Efforts to restructure the service-oriented areas of the CORE (ERP and collaboration solutions) segment, which the management board decided to implement in May, are ongoing and slated for completion by the end of the financial year. Adjusted for restructuring expenses, EBIT before M&A effects (non-IFRS) was EUR 4.5 million in the 3rd quarter and thus significantly above the figure for the prior-year period (EUR 2.6 million).

»By restructuring and accelerating the expansion of our global-reach service organisation, we are setting a clear course for a robust growth strategy with rising margins. Our cloud business is progressing really well, and we are SAP’s leading partner in the German-speaking region and Poland in respect of SAP transformation. CONVERSION/4 will enable us to further expand our market position«, according to Co-CEO Michael Zitz.

9-Month Period 2022/23

In the first nine months of 2022/23, Group sales revenues of EUR 363.8 million were 7% up on the prior-year figure of EUR 338.9 million. Adjusted for the decline in non-recurring licence revenues, sales grew by 10%. Recurring revenues, which are easier to budget, increased by 11% and account for 55% of total sales (Oct 2021 – Jun 2022: 53%). Next-generation cloud business is steadily growing, gaining 12% year on year. At the same time, licence revenues decreased, as expected, to EUR 17.4 million, a decline of 27% compared to the unusually strong prior-year period (where business was catching up after the effects of the pandemic in 2020). CONVERSION/4 sales almost doubled to EUR 14.7 million and are again significantly higher than the comparable prior-year level (Oct 2021 – Jun 2022: EUR 8.2 million). Co-CEO Lars Landwehrkamp: »We are delighted to see demand for migration projects to SAP S/4HANA continuing to grow. Our clear roadmap and impressive track record of – so far – more than 60 transformations to SAP S/4HANA using CONVERSION/4 will offer further opportunities for recruiting a lot of new customers and entering into long-term partnerships.«

EBIT before M&A effects (non-IFRS) decreased to EUR 11.4 million (minus 44%) due to non-recurring restructuring expenses of EUR 6.9 million, while EBIT decreased by 25% to EUR 10.0 million. This includes non-recurring income of EUR 3.2 million from the early acquisition of the outstanding 49% stake in the Polish subsidiary. Adjusted for the one-off special restructuring effect, EBIT before M&A effects (non-IFRS) would be EUR 18.3 million (minus 10% year on year). The result for the period was EUR 6.9 million (minus 20%) and earnings per share were EUR 1.36 (minus 21%).

The equity ratio as of 30 June 2023 was 30% (30 Sep 2022: 29%). Year on year, the headcount as of 30 June 2023 has increased by 7% to 2,853 (30 Jun 2022: 2.675).

Confirmation of adjusted guidance for financial year 2022/23

For financial year 2022/23, the management board is holding firm to its revised forecast from 15 May 2023 for EBIT before M&A effects (non-IFRS) – taking account of the one-off special restructuring effect in the high single-digit millions – in a range of EUR 17.5 million to EUR 21.5 million. The previous forecast predicted EBIT before M&A effects (non-IFRS) between EUR 27.5 million and EUR 30.5 million. The forecast for sales revenues (IFRS) for financial year 2022/23 remains unchanged at EUR 470 million to EUR 500 million (2021/22: EUR 452.7 million).

The medium-term outlook, with robust organic growth in the mid-single-digit percentage range, is reaffirmed. The target margin for EBIT before M&A effects (non-IFRS) of 7% to 8% originally communicated for financial year 2025/26 is expected to be achieved ahead of time in financial year 2024/25. Renewed economic setbacks caused by geopolitical changes cannot, however, be entirely ruled out and currently pose the greatest risk to achieving this guidance.

All for One Group SE will be publishing its full quarterly statement for the 9-month period 2022/23 on 10 August 2023.

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. With market leading business software solutions based on SAP, Microsoft and IBM together with around 2,800 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 achieved Group sales of EUR 453 million in financial year 2021/22 and is listed in the Prime Standard on the Frankfurt Stock Exchange.

https://www.all-for-one.com/ir-english