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Interim Report 9M 2016: Eleven New Clients and Revenue Growth of 8.5%

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Summary

9M 2016 reported revenue was EUR 202.3m, an increase of 4.2% and an increase of 6.2% when measured in local currencies compared with 9M 2015.

9M 2016 adjusted non-GAAP[1] revenue was EUR 206.7m, an increase of 6.5% and an increase of 8.5% when measured in local currencies.

Total order book value increased by 43% during the nine months driven by SimCorp Dimension orders based on subscription licensing terms and SimCorp Coric orders on subscription based licensing terms. The order book was valued at EUR 34.4m at September 30, 2016 and continues to be at an all time high.

At September 30, 2016, EUR 261m of the projected 2016 revenue had been contractually secured, EUR 11m more than at the same time last year.

SimCorp maintains its expectations as updated on September 24, 2016. Revenue growth measured in local currencies is  expected to be between 5% and 10%, and the expectation for EBIT margin measured in local currencies is between 22% and 24%. SimCorp expects the adjusted non-GAAP revenue growth in local currencies to be between 10% and 15% and the adjusted non-GAAP EBIT margin measured in local currencies to be between 24% and 28%.

Klaus Holse, SimCorp CEO comments: ”With three new SimCorp Dimension clients, including a major new client in North America and two new SimCorp Coric clients we have had a satisfactory Q3. The underlying business activity in our markets remains high and based on the outlook, we have started investing further into our long term delivery capabililities.”

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SimCorp’s Board of Directors today considered and approved the Group’s interim report for the nine months ended September 30, 2016. Highlights of the report are:

  • 9M order intake from new licenses and add-on licenses was EUR 44.4m compared with EUR 48.9m in 9M 2015. Q3 order intake was EUR 19.6m compared with EUR 17.9m in Q3 2015. The order book increased by EUR 2.0m during the quarter and amounted to EUR 34.4m at September 30, 2016, compared with EUR 29.2m at September 2015. Page 5
  • Reported revenue for 9M increased 4.2% y/y to EUR 202.3m and 6.2% y/y in local currencies. Q3 reported revenue increased 6.5% to EUR 74.1m and 8.0% y/y in local currencies. Page 6
  • 9M 2016 adjusted non-GAAP revenue increased 6.5% y/y in EUR and yielded 206.7m. In local currencies the increase was 8.5%. Q3 2016 adjusted non-GAAP revenue increased 6.3% y/y in EUR and yielded 74.0m. In local currencies the increase was 7.8%. Page 6
  • 9M 2016 recurring revenue was EUR 120.2m compared with EUR 114.0m in the same period of 2015. Currency fluctuations impacted this negatively by EUR 2.4m. Q3 2016 recurring revenue was EUR 41.6m compared with EUR 37.9m in the same period of 2015. Currency fluctuations impacted the revenue negatively by EUR 1.0m. Page 7
  • 9M 2016 non-recurring revenue was EUR 82.1m compared with EUR 80.1m in the same period of 2015. Currency fluctuations impacted this negatively by EUR 1.3m. Q3 2016 non-recurring revenue was EUR 32.5m compared with EUR 31.7m in the same period of 2015. Currency fluctuations impacted revenue negatively by EUR 0.1m. Page 7
  • Total cost for the nine months was EUR 164.7m, an increase of 8.8% compared with the same period in 2015. Currency fluctuations reduced costs by EUR 2.8m . In Q3 total cost was EUR 55.9m, an increase of 11.5% on the same period last year, of which currency fluctuations reduced costs by EUR 1.3m . Page 8
  • 9M 2016 EBIT was EUR 37.9m compared with EUR 43.0m for the same period last year. Currency fluctuations impacted 9M EBIT negatively by EUR 1.0m. Q3 EBIT was EUR 18.4m compared with EUR 19.7m in Q3 last year. Currency fluctuations impacted Q3 EBIT positively by EUR 0.2m. Page 10
  • 9M 2016 EBIT margin was 18.7% compared with 22.2% the year before. Q3 2016 EBIT margin was 24.8% compared with 28.3% the year before. Page 10
  • 9M 2016 adjusted non-GAAP EBIT decreased by 1.6% to EUR 42.3m and adjusted non-GAAP EBIT for Q3 2016 was EUR 18.2m compared with EUR 19.7m in Q3 2015. Page 10
  • 9M 2016 adjusted non-GAAP EBIT margin was 20.5% compared with 22.2% the year before. Q3 2016 adjusted non-GAAP EBIT margin was 24.6% compared with 28.3% the year before. Page 10
  • The 9M cash flow from operating activities before financial items was EUR 55.4m compared with EUR 40.9m in the same period of 2015. In Q3 cash flow from operating activities before financial items was EUR 23.1m compared with EUR 19.4m in the same period of 2015. Page 11
  • SimCorp maintains its expectations as updated on September 24, 2016 for full-year revenue growth measured in local currencies of 5% and 10% and an EBIT margin measured in local currencies of between 22% and 24%. Expectations for adjusted non-GAAP revenue growth in local currency is maintained between 10% and 15% and the expectation for adjusted non-GAAP EBIT margin measured in local currencies is maintained between 24% and 28%. Based on currency rates prevailing at the end of October 2016, SimCorp expects a negative impact from currency fluctuations on full-year revenue growth of around 2% (unchanged) and a negative currency impact on EBIT margin of around 0.2% (unchanged). Page 12
  • At September 30, 2016, EUR 261m of the projected 2016 revenue had been contractually secured, EUR 11m more than at the same time last year. The Group’s pipeline of potential license contracts supports the expected revenue growth. Page 12


Conference call
SimCorp’s Executive Management Board will present this report at a conference call today at 2:00 PM (CET). Please use any of the following phone numbers to dial in to the conference call:

From Denmark:                    +45 3271 1659
From USA:                           +1 718 354 1157
From other countries:           +44(0)20 7136 2050

The pin code to access the call is 6805775#.

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: http://edge.media-server.com/m/p/s2iu2sqj.

The powerpoint presentation will be available just prior to the conference call via SimCorp’s website www.simcorp.com.


Enquiries regarding this announcement should be addressed to:
Klaus Holse, Chief Executive Officer, SimCorp A/S (+45 3544 8802, +45 2326 0000)
Thomas Johansen, Chief Financial Officer, SimCorp A/S (+45 3544 6858, +45 2811 3828)
Anders Hjort, Head of Investor Relations, SimCorp A/S (+45 3544 8822, +45 2892 8881)


Company Announcement no. 46/2016

 

[1] As of 2016 SimCorp also offers SimCorp Dimension to new customers on subscription based licensing terms as opposed to the historically used perpetual based licensing terms. Adjusted non-GAAP figures are presented as if the SimCorp Dimension orders were still made on perpetual license terms and consequently income recognized when signed.

 

 

 

 

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