• In Q1 2023, SimCorp accelerated its growth momentum across all revenue metrics. Forward-looking Annual Recurring Revenue (ARR) grew by 12.6% in local currency compared to ARR by the end of Q1 2022. Ratable revenue amounted to EUR 142.3 million in Q1 2023, reflecting local currency growth of 11.8%.
• Reported revenue was EUR 136.3 million in Q1 2023 (Q1 2022: EUR 114.7 million), equivalent to an increase of 18.8% in reported terms and 18.6% when measured in local currencies. EBIT excluding special items was EUR 28.3 million (EUR 16.3 million in Q1 2022), corresponding to an EBIT-margin of 20.8%. The execution of the cost efficiency program FuEL is on track and the cost reduction targets are confirmed. Restructuring costs amounted to EUR 5.4 million in the quarter (special items of EUR 0.8 million in Q1 2022).
• SimCorp generated Free Cash Flow of EUR 45.6 million in Q1 2023, representing a significant improvement compared to EUR 20.1 million in Q1 2022. The improvement was driven by stronger underlying profitability and enhanced working capital management.
• In Q1 2023, SimCorp signed two new clients: i) a US-based insurance company for Dimension SaaS solution, Investment Operation Solution and Data Management Services and ii) a large asset manager in Singapore for client reporting. A number of expansionary SimCorp Dimension license contracts were signed in Q1 2023, including two migrations from on-premise to SaaS.
• On 27 April, SimCorp and Deutsche Börse entered into an announcement agreement pursuant to which Deutsche Börse will make an all-cash voluntary recommended takeover offer to acquire all SimCorp shares at a price of DKK 735.0 per share. The offer is subject to a number of conditions, including necessary regulatory approvals.
• Based on the performance in Q1 2023, SimCorp confirms the financial guidance for 2023. Measured in local currency, it is expected that ARR will grow 12-17%, ratable revenue will grow 6-11% and the EBIT margin is expected to be 21-24%, excluding special items (costs related to the execution of Programme FuEl and M&A-related transaction costs).

SimCorp CEO, Christian Kromann, comments:

"The first quarter of 2023 has been a solid start to the year. We continue to transform the company across our product offering, our services and our organization. Our SaaS implementations are successful, and we see continued strong market demand for our offerings. We are today confirming our financial guidance for 2023 as well as our mid-term target of returning to record-high profitability"

Key financial highlights

EUR million, unless 2023 2022 2022 2023
otherwise stated Q1 Q1 FY Outlook
Organic ARR growth 12.6% N/A 11.7% 12-17%
(%)
Organic growth of 11.8% 11.3% 5.3% 6-11%
ratable revenue (%)
Ratable revenue 142.3 124.3 489.0
Reported revenue 136.3 114.7 561.0
EBIT-margin, 20.8% 14.2% 24.2% 21-24% (local currencies)
excluding special
items (%)
EBIT, excluding 28.3 16.3 135.8
special items
Special Items -5.4 -0.8 -9.9
Reported EBIT 22.9 15.5 125.9

Other financial highlights and key ratios for the SimCorp Group

EUR '000 2023 2022 2022
Q1 Q1 FY
Income Statement
Revenue 136,319            114,713 560,968
Earnings before interest, tax, 26,684 19,152 140,739
depreciation, and amortization
(EBITDA)
Operating profit (EBIT) 22,919 15,527 125,856
Financial items, net -2,272 2,170 2,292
Profit before tax 20,647 17,697 128,148
Profit for the period 15,571 13,321 99,254
Balance Sheet
Share capital 5,441 5,441 5,441
Total equity 355,708 293,627 375,557
Bank loan / credit facility 26,844 20,167  6,724
Intangible assets 88,227 91,845 88,984
Property, plant, and equipment 41,492 41,848 41,459
Receivables 124,126 130,167 112,378
Contract assets 286,837 213,410 292,903
Cash and cash equivalents 66,382 49,768 40,546
Total assets 648,974 558,632 604,328
Cash Flow
Net cash from operating activities 48,327 23,172 60,340
Net cash used in investing -10,402 -699 -2,767
activities
Net cash used in financing -11,855 -20,501 -64,822
activities
Free cash flow  45,647 20,091 47,155
Employees
Number of employees at the end of 2,404 2,045 2,245
the period
Average number of employees - FTE 2,316 1,994 2,067
 Alternative Performance measures
Annual Recurring Revenue (ARR) (EUR 367,935 326,767 352,224
`000)
Financial Ratios
Revenue growth (%) 18.8 4.3 13.0
Organic revenue growth (%) 18.6 4.1 9.4
Organic ARR growth (%) 12.6 - 11.7
EBIT margin (%) 16.8 13.5 22.4
ROIC (return on invested capital) 25.0 21.2 35.6
(%)
Receivables turnover ratio 6.1 5.5 8.4
Equity ratio (%) 54.8 52.6 62.1
Return on equity (%) 16.2 16.3 26.0
Share Performance
Earnings per share - EPS (EUR)  0.40 0.34 2.52
Diluted earnings per share - EPS-D 0.39 0.34 2.50
(EUR)
Cash flow per share - CFPS (EUR) 1.22 0.58 1.53
Average number of shares (million) 39.3 39.5 39.3
Average number of shares - diluted 39.7 39.7 39.7
(million)
EUR/DKK rate of exchange at end of  7.4485 7.4379  7.4365
period

Please refer to the definition of ratios on page 63 of the Annual Report 2022. The interim report is unaudited and has not been reviewed by external auditors.

Investor presentation

SimCorp's Executive Management Board will present the report on a conference call on Wednesday, May 17, 2023 at 11:00 am (CET).

At the end of the presentation there will be a Q&A session.
The presentation will be available prior to the conference call via SimCorp's website
www.simcorp.com/en/about/investor/presentations-and-events/quarterly-and-annual-investor-meetings

Webcast details

It will be possible to follow the presentation via this link:

https://edge.media-server.com/mmc/p/zab7z5ks

Telephone conference registration

Participants are required to register in advance of the conference using the link provided below. Upon registering, each participant will be provided with Participant Dial In Numbers, and a unique Personal PIN.

Online registration:  https://register.vevent.com/register/BI560c2316f3f4488caf8a396cbc9844ce

Enquiries regarding this announcement should be addressed to

Investor contacts

Christian Kromann, Chief Executive Officer, SimCorp A/S (+45 3544 8800, +45 2810 9090)

Michael Bjergby, Chief Financial Officer, SimCorp A/S (+45 3544 8800, +45 3137 4171)

Anders Hjort, Head of Investor Relations, SimCorp A/S (+45 3544 8800, +45 2892 8881)

Media contacts

Tobias Brun-Falkencrone, Group Communications Director, SimCorp A/S (+45 2938 1284)

Rune Jonassen, Internal Communication Manager, SimCorp A/S (+45 2320 1175)

Company Announcement no. 10/2023