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SimCorp reports revenue growth of 8.8% and EBIT margin of 26.7% in 2021

Q4 2021 highlights:

  • Reported revenue was EUR 160.2m, an increase of 9.6% compared with Q4 2020. Measured in local currencies, organic revenue increase by 7.3% when compared with Q4 2020.
  • EBIT was EUR 54.3m and EBIT margin was 33.9% compared with EBIT of EUR 58.4m and EBIT margin of 40.0% in Q4 2020.
  • In Q4 2021, one new SimCorp Dimension and one new stand-alone SimCorp Coric deal were signed, and we welcomed three new clients through our existing outsourcing clients.
  • In Q4 2021, a large number of significant deals were signed with existing clients.
  • Order intake was EUR 67.0m, an increase of EUR 10.4m compared with Q4 2020.


FY 2021 highlights:

  • Reported revenue was EUR 496.3m, an increase of 8.8% compared with 2020. Measured in local currencies, organic revenue increased by 8.7% when compared with 2020 in line with the financial guidance given.
  • Annual Recurring Revenue (ARR) for the last twelve months covering the period Q1 2021- Q4 2021 was EUR 277.4m, an increase of 10.5% when compared with the period Q1 2020-Q4 2020, and an increase of 10.4% when measured in local currencies.
  • EBIT was EUR 132.4m compared with EUR 124.3m in 2020 and EBIT margin was 26.7% compared with 27.3% in 2020. Measured in local currencies, EBIT margin was 26.9% in line with the financial guidance given.
  • In 2021, four new SimCorp Dimension and two new stand-alone SimCorp Coric deals were signed, and we welcomed three new clients through our existing outsourcing clients. Since the end of 2021, we have signed one new SimCorp Dimension and one new stand-alone SimCorp Sofia deal.
  • Order intake was EUR 137.6m compared with EUR 115.1m in 2020. The increase was primarily due to several significant deals signed with existing clients.
  • At December 31, 2021, the order book amounted to EUR 73.0m, an increase of EUR 16.9m when compared with the order book at December 31, 2020. The increase was primarily due to signing four new Datacare deals.
  • In 2021, we added eight new SimCorp Dimension as a Service clients, bringing the total number of SimCorp Dimension clients on a hosted solution to 34, and total number of as a service clients on a hosted solution above 50.
  • Net profit was EUR 110.0m compared with EUR 88.3m in 2020.
  • Free cash flow was EUR 78.6m, a decrease of EUR 13.2m when compared with 2020. The decrease was primarily due to a one-off payment following a change in the Danish Holiday Act and postponed payments from 2020 to 2021 of income taxes and social charges offered under government COVID-19 related support schemes.
  • The net cash position was EUR 47.7m compared with EUR 53.1m at year-end 2020.
  • Total assets were EUR 526.3m at December 31, 2021 compared with EUR 470.8m at yearend 2020.
  • SimCorp entered 2022 with EUR 323.2m of the full year’s revenue signed, an improvement of EUR 34.0m or 11.8% compared with last year.
  • The Board of Directors intends to recommend to shareholders at the Annual General Meeting 2022 that dividends of EUR 39.9m be declared at the rate of DKK 7.50 per share compared with DKK 7.50 last year, equivalent to 36% (2020: 45%) of profit for the year and 51% (2020: 44%) of free cash flow in 2021.
  • In addition, provided there are no specific requirements for liquidity, SimCorp expects to initiate a new share buyback program in 2022. The intention is to purchase shares for EUR 40m over the next 10 months in two half yearly buy-back programs of EUR 20m each.

Financial guidance 2022:

  • In 2022, SimCorp expects revenue to grow between 7% and 12%, Annual Recurring Revenue (ARR) to grow between 10% and 15%, and EBIT margin to be between 23.0% and 26.0%, all measured in local currencies.
  • Included in the expected EBIT margin for 2022 is a negative short-term impact of around 2%-points from planned investments in the future, including investments in new SaaS operations and solutions, as well as a higher salary increase in 2022 compared with recent years. The extra demand driven investments in 2022 are expected to lead to additional revenue and higher EBIT margin in coming years.
     

Christian Kromann, SimCorp CEO comments: “SimCorp delivered a solid performance in 2021, while successfully progressing strategy implementation in line with our plan. We signed eight strategically significant SaaS deals, and achieved revenue growth of 8.8%, ARR growth of 10.5%, EBIT margin of 26.7%, and free cash flow of EUR 78.6m, despite COVID-19 challenges. 2021 showed continued progress in our transition to a truly global SaaS company, which will continue with investment in 2022 to ensure we position ourselves for the future with highly market-relevant capabilities and offerings.”

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