All for One Group SE — Interim / Quarterly Report 2015

Feb 11, 2016

Key Figures

IFRS

in KEUR	10/2015 –	10/2014 –	Difference	in %
	12/2015	12/2014
Earnings situation
Sales revenues	70,781	61,403	9,378	15%
EBITDA	7,969	7,159	810	11%
EBITDA margin (in %)	11.3	11.7
EBIT	5,760	5,257	503	10%
EBIT margin (in %)	8.1	8.6
Earnings after tax	3,659	2,314	1,345	58%
Employees
Number of employees (period end)	1,229	1,121	108	10%
Number of full‐time equivalents (ø)	1,086	998	88	9%
Share
Number of shares (ø)	4,982,000	4,982,000	0	0%
Earnings per share (in EUR)	0.73	0.46	0.27	59%

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* Prior year adjusted according to the 2014/15 consolidated financial statements

in %	10/2015 – 12/2015	10/2014 – 09/2015	Difference
Non‐financial performance indicators**
Employee retention	94.7	95.6	n.a.
Health index	96.7	97.0	n.a.

** Prior year: Full‐year value

in KEUR	31.12.2015	30.09.2015	Difference	in %
Balance Sheet
Total assets	161,939	167,977	‐6,038	‐4%
Shareholders' equity	57,486	53,805	3,681	7%
Equity ratio (in %)	35	32
Net liquidity	6,229	3,513	2,716	77%

Certain statements within this quarterly statement constitute forward‐looking statements that involve forecasts, estimates or expectations and are subject to risks and uncertainties. The actual results, performance and achievements can deviate from those expressed or implied in these forward‐looking statements. Changes in the general economic and competitive situation, particularly in the core business divisions and markets, and changes in legislation, particularly those related to taxes, can cause such deviations. The German‐language version of this interim report is definitive.

The company assumes no obligation to update statements made in this quarterly statement.

Consolidated Quarterly Statement of All for One Steeb AG

from 1 October to 31 December 2015

All for One Steeb AG's financial year 2015/16 deviates from the calendar year and begins on 1 October 2015 and ends on 30 September 2016. The current reporting period for the 1st quarter covers the timeframe of 1 October to 31 December 2015, as well asthe corresponding prior‐year period. The consolidated quarterly statement of All for One Steeb AG as at 31 December 2015 was prepared in accordance with the International Financial Reporting Standards (IFRS) as formulated by the International Accounting Standards Board (IASB) and complies with §51a of the rules and regulations of the »Frankfurter Wertpapierbörse« (FWB, the Frankfurt Stock Exchange). The consolidated quarterly statement has not been audited.

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General Information

Annotated prior‐year figures were adjusted (see section J in the notes to the consolidated financial statements, page 61ff., in the Annual Report 2014/15).

Sales and Earnings Performance

Quarterly sales up 15% / Software license revenues up 25% due in large part to SAP HANA

In this 3‐month period All for One Steeb AG achieved an increase in sales revenues of 15% to EUR 70.8 million (Oct 2014 – Dec 2014: EUR 61.4 million). We posted noticeable gains in all types of revenues in line with our integrated business model of being a full‐service provider for all things relating to SAP, information technology and business.

Sales by Type

(Deviations result from the calculation of values in KEUR, figures may contain rounding differences)

Our managed cloud services benefit from innovations such as the advancing digital transformation. As a result of this, recurring sales revenues from outsourcing services (including cloud services and software maintenance) posted a gain of 8% to EUR 28.6 million (Oct 2014 – Dec 2014: EUR 26.5 million) in the current 3‐month period. This gain is due not only to continuously adding new customers, but also to expanding our range of products and services among our established customers,such as by operating HANA or Microsoft e‐mail landscapes in connection with SAP enterprise software within our data centers. A particularly large increase in license revenues resulted in the proportion of recurring revenues from outsourcing services (including cloud services and software maintenance) to total sales declining from 43% (Oct 2014 – Dec 2014) to 40% (Oct 2015 – Dec 2015).

The 3‐month revenuesfrom the sale ofsoftware licenses increased significantly by 25% to EUR 13.3 million (Oct 2014 – Dec 2014: EUR 10.6 million). SAP S/4HANA was launched in February 2015 and is the successor for the SAP Business Suite. Here again, this is an area for which small to mid‐sized enterprises are positioning themselves to reap real‐time benefits. SAP HANA is now being used to a much greater degree within the SAP new customer business than conventional relational database platforms. Multiple projects also ensure a high level of utilisation of our consulting teams. All of this enabled us to post a gain in consulting revenues of 14% to EUR 26.9 million (Oct 2014 – Dec 2014: EUR 23.5 million).

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EBITDA improves from EUR 7.2 million to 8.0 million / EBIT up 10% / EBIT margin of 8.1%

The cost of materials ratio increased from 36% (Oct 2014 – Dec 2014) to 39% (Oct 2015 – Dec 2015). Besides purchased services, the cost of materials primarily includes the costs of acquiring SAP software licensing rights and the expensesfor SAP maintenance agreements. Personnel expenses increased disproportionately small in relation to sales performance by 11% to EUR 26.8 million (Oct 2014 – Dec 2014: EUR 24.2 million). For that reason, the share of personnel expenses to sales revenues declined from 39% (Oct 2014 – Dec 2014) to 38% (Oct 2015 – Dec 2015). The other operating expenses increased 9% to EUR 9.3 million (Oct 2014 – Dec 2014: EUR 8.5 million). The ratio of these expenses to total sales decreased slightly from 14% (Oct 2014 – Dec 2014) to 13% (Oct 2015 – Dec 2015). Depreciation and amortisation totalled EUR 2.2 million, which was 16% higher than the prior year level (Oct 2014 – Dec 2014: EUR 1.9 million). This item includes regular amortisation of intangible assets in the amount of EUR 1.2 million (Oct 2014 – Dec 2014: EUR 1.1 million).

The EBITDA after 3 months was EUR 8.0 million (Oct 2014 – Dec 2014: EUR 7.2 million), which is an increase of 11%. The corre‐ sponding EBIT could also be increased to EUR 5.8 million, which was 10% better than the prior‐year figure of EUR 5.3 million. The EBIT margin decreased slightly from 8.6% (Oct 2014 – Dec 2014) to 8.1% (Oct 2015 – Dec 2015). The financial result after 3 months improved significantly from minus EUR 1.3 million (Oct 2014 – Dec 2014) to minus EUR 0.6 million (Oct 2015 – Dec 2015).

The EBT increased by 33% after 3 months to EUR 5.2 million (Oct 2014 – Dec 2014: EUR 3.9 million). The comparatively high income tax burden of 41% in the same quarter of the prior year (Oct 2014 – Dec 2014) declined to 30% in the current reporting period (Oct 2015 – Dec 2015).

Earnings after tax rose to EUR 3.7 million (Oct 2014 – Dec 2014: EUR 2.3 million). The average number of shares outstanding in the reporting period was an unchanged 4,982,000. The earnings per share for this 3‐month period were EUR 0.73 (Oct 2014 – Dec 2014: EUR 0.46).

Assets and Financial Situation

Group Balance Sheet

Despite the major increase in business volume, total assets declined to EUR 161.9 million as at 31 December 2015 (30 September 2015: EUR 168.0 million).

Non‐current assets decreased slightly from EUR 83.2 million (30 September 2015) to EUR 82.7 million (31 December 2015). This development is attributable primarily to a decline in other intangible assets (minus EUR 0.9 million), while the financial assets increased (plus EUR 0.5 million). Tangible fixed assets increased by EUR 0.3 million to 10.2 million (31 December 2015). Deferred tax assets posted a slight decrease of EUR 0.1 million to 1.0 million (31 December 2015).

Current assets decreased from EUR 84.8 million (30 September 2015) to EUR 79.2 million (31 December 2015). The increase in trade accounts receivable by EUR 3.8 million to 40.1 million (31 December 2015) is attributable primarily to the high level of license sales. Cash and cash equivalents declined by EUR 9.6 million to 31.4 million (30 September 2015: EUR 41.0 million). A tranche of promissory notes in the amount of EUR 12.0 million was repaid early on 30 October 2015.

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Equity as at 31 December 2015 improved by EUR 3.7 million to 57.5 million as a result of the good earnings trend. The equity ratio was 35% (30 September 2015: 32%).

The decline in non‐current liabilities by EUR 0.7 million to 50.5 million (31 December 2015) includes decreases in long‐term finan‐ cial liabilities (minus EUR 0.2 million), deferred tax liabilities (minus EUR 0.4 million) and other liabilities (minus EUR 0.2 million).

Current liabilities declined by EUR 9.0 million to 54.0 million (31 December 2015). It was primarily the early repayment of a promissory note tranche totalling EUR 12.0 million made on 30 October 2015 that led to a reduction in current financial liabilities from EUR 16.0 million (30 September 2015) to EUR 3.9 million (31 December 2015). The other liabilities declined by EUR 1.9 million. The EUR 4.2 million increase in trade accounts payable is partly a result of the high level of license sales. The current income tax liabilities increased by EUR 1.2 million.

Net liquidity improved by EUR 2.7 million from 3.5 million (30 September 2015) to EUR 6.2 million (31 December 2015).

Cash Flow and Investments

Cash flows from operating activities increased by EUR 1.8 million to 4.3 million (Oct 2014 – Dec 2014: EUR 2.5 million). It was primarily the high level of earnings – the EBITDA was EUR 8.0 million (Oct 2014 – Dec 2014: EUR 7.2 million) – that led to this positive development.

Cash flows from investing activities totalled minus EUR 1.4 million in the current reporting period (Oct 2014 – Dec 2014: minus EUR 0.4 million) and includes accelerated technology investments in expanding the managed cloud services business. The free cash flow therefore amounts to EUR 2.9 million in the current reporting period (Oct 2014 – Dec 2014: EUR 2.1 million).

The cash flow from financing activities of minus EUR 12.6 million (Oct 2014 – Dec 2014: minus EUR 0.9 million) primarily includes the early repayment of a promissory note tranche in the amount of EUR 12.0 million. Despite this repayment, cash funds totalled EUR 31.4 million as at 31 December 2015 (31 December 2014: EUR 34.5 million).

Employees / Corporate Governance / Opportunities and Risk Report

The size of our workforce mirrors our business performance. The staffing strength as at 31 December 2015 increased 10% to 1,229 employees (31 December 2014: 1,121 employees). The average personnel capacity for the 3‐month period rose 9% from 998 (Oct 2014 – Dec 2014) to 1,086 (Oct 2015 – Dec 2015) full‐time positions. Trainees and apprentices are included in these figures. The prior‐year figures were adjusted accordingly. The prior‐year figures for the two non‐financial performance indicators employee retention and health index (see the section Internal Management System, page 20, in the Annual Report 2014/15) are available only on a full‐year basis. Publication of our corporate governance Declaration of Conformity for the current financial year is scheduled for mid‐February 2016. During the current reporting period, there were no significant changes in terms of the opportunities and the risk profile as compared to the estimates and assessments presented in the Annual Report 2014/15 (see Opportunities and Risk Report, page 29ff., in the Annual Report 2014/15).

Outlook for the Financial Year 2015/16

We remain committed to our forecast of 2 November 2015 whereby revenues for 2015/16 are expected to be within a range of EUR 255 to 265 million with an EBIT of from EUR 17.5 to 19.5 million. Potential economic setbacks continue to pose a significant risk to achieving these forecasts.

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Subsequent Events

No further events subject to disclosure occurred since 31 December 2015.

Group Income Statement and Other Comprehensive Income

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from 1 October to 31 December 2015

in KEUR	10/2015 –	10/2014 –
	12/2015	12/2014
Profit and Loss Account
Sales revenues	70,781	61,403
Other operating income	625	620
Cost of materials and purchased services	‐27,394	‐22,105
Personnel expenses	‐26,788	‐24,233
Depreciation and amortisation	‐2,209	‐1,902
Other operating expenses	‐9,255	‐8,526
EBIT	5,760	5,257
Financial income	76	103
Financial expense*	‐640	‐1,448
Financial result*	‐564	‐1,345
Earnings before tax (EBT)*	5,196	3,912
Income tax	‐1,537	‐1,598
Earnings after tax	3,659	2,314
attributable to equity holders of the parent*	3,646	2,305
attributable to non‐controlling interests*	13	9
Other comprehensive income
Unrealised profits (+) / losses (‐) from currency translation	22	8
Items that are or may be reclassified to profit or loss	22	8
Other comprehensive income	22	8
Total comprehensive income*	3,681	2,322
attributable to equity holders of the parent*	3,668	2,313
attributable to non‐controlling interests*	13	9
Undiluted and diluted earnings per share
Earnings per share in EUR*	0.73	0.46
Average number of shares outstanding (undiluted and diluted)	4,982,000	4,982,000

* Prior year adjusted according to the 2014/15 consolidated financial statements

Group Balance Sheet

as at 31 December 2015

ASSETS	31.12.2015	30.09.2015
in KEUR
Non‐current assets
Goodwill	19,784	19,990
Other intangible assets	44,783	45,694
Tangible fixed assets	10,165	9,876
Financial assets	5,519	4,981
Other assets	1,445	1,467
Deferred tax assets	1,048	1,159
	82,744	83,167
Current assets
Inventories	537	1,229
Trade accounts receivable	40,069	36,262
Current income tax assets	383	492
Financial assets	3,251	3,100
Other assets	3,513	2,686
Cash and cash equivalents	31,442	41,041
	79,195	84,810
Total assets	161,939	167,977
EQUITY AND LIABILITIES	31.12.2015	30.09.2015
in KEUR
Equity
Issued share capital	14,946	14,946
Capital reserve	11,228	11,228
Other reserves	628	606
Retained earnings	30,582	26,936
Share of equity attributable to equity holders of the parent	57,384	53,716
Non‐controlling interests	102	89
Total equity	57,486	53,805
Non‐current liabilities
Provisions	36	34
Post‐employment benefit liabilities	3,292	3,210
Financial liabilities	21,310	21,520
Deferred tax liabilities	14,454	14,815
Other liabilities	11,387	11,615
	50,479	51,194
Current liabilities
Provisions	1,203	1,615
Current income tax liabilities	6,476	5,300
Financial liabilities	3,903	16,008
Trade accounts payable	15,151	10,948
Other liabilities	27,241	29,107
	53,974	62,978
Total liabilities	104,453	114,172
Total equity and liabilities	161,939	167,977

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Group Cash Flow Statement

from 1 October to 31 December 2015

in KEUR	10/2015 –	10/2014 –
	12/2015	12/2014
Earnings before tax*	5,196	3,912
Amortisation of intangible assets	1,207	1,064
Depreciation of tangible fixed assets	1,002	838
Financial result*	564	1,345
EBITDA	7,969	7,159
Increase (+) / decrease (‐) in cumulative value adjustments and provisions	‐43	‐596
Other non‐cash expense (+) and income (‐)	‐96	‐14
Changes in assets and liabilities:
Increase (‐) / decrease (+) in trade receivables	‐4,097	‐2,678
Increase (‐) / decrease (+) in financial assets	‐676	389
Increase (‐) / decrease (+) in other assets	114	‐175
Increase (+) / decrease (‐) in trade payables	4,198	1,622
Increase (+) / decrease (‐) in other liabilities	‐2,605	‐2,759
Income tax paid	‐423	‐433
Cash flow from operating activities	4,341	2,515
Purchase of intangible, tangible fixed and other assets	‐1,599	‐608
Sale of intangible, tangible fixed and other assets	105	70
Interest received	75	103
Cash flow from investing activities	‐1,419	‐435
Repayment of loans and long‐term financial liabilities	‐12,000	0
Interest paid	‐216	‐246
Repayment of finance leases	‐335	‐328
Increase in shareholding in consolidated equity interests	0	‐295
Dividend payments to shareholders, non‐controlling interests and other parties	0	‐23
Cash flow from financing activities	‐12,551	‐892
Increase / decrease in cash and cash equivalents	‐9,629	1,188
Effect of exchange rate fluctuations on cash funds	30	10
Cash funds at the beginning of the period	41,041	33,347
Cash funds at the end of the period	31,442	34,545

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* Prior year adjusted according to the 2014/15 consolidated financial statements

Statement of Changes in Equity of the Group

from 1 October to 31 December 2015

			Share of equity attributable to equity holders of the parent		Non‐ controlling interests	Total share‐ holders' equity
in KEUR	Issued share capital	Capital reserve	Currency translation	Retained earnings
1 October 2015	14,946	11,228	606	26,936	89	53,805
Earnings after tax	0	0	0	3,646	13	3,659
Other comprehensive income	0	0	22	0	0	22
Total comprehensive income	0	0	22	3,646	13	3,681
Distribution to non‐controlling interests Acquisition of non‐controlling interests	0	0	0	0	0	0
without a change in control	0	0	0	0	0	0
Transactions with
owners of the company	0	0	0	0	0	0
31 December 2015	14,946	11,228	628	30,582	102	57,486
1 October 2014*	14,946	11,228	420	20,094	140	46,828
Earnings after tax*	0	0	0	2,305	9	2,314
Other comprehensive income	0	0	8	0	0	8
Total comprehensive income	0	0	8	2,305	9	2,322
Distribution to non‐controlling interests	0	0	0	0	‐23	‐23
Acquisition of non‐controlling interests without a change in control*	0	0	0	26	‐60	‐34
Transactions with owners of the company	0	0	0	26	‐83	‐57
31 December 2014	14,946	11,228	428	22,425	66	49,093

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* Prior year adjusted according to the 2014/15 consolidated financial statements

Shares Held by Board Members

as at 31 December 2015

SHARES	31.12.2015 Direct	31.12.2015 Indirect	30.09.2015 Direct	30.09.2015 Indirect
Supervisory Board
Josef Blazicek	6,500	12,000	6,500	12,000
Peter Brogle	42,513	0	42,513	0
Peter Fritsch	24,000	0	24,000	0
Friedrich Roithner	0	0	0	0
Jörgen Dalhoff	250	0	250	0
Detlef Mehlmann	0	0	0	0
Management Board
Lars Landwehrkamp	50,000	22,500	50,000	22,500
Stefan Land	32,000	0	32,000	0
	148,763	22,500	148,763	22,500

Investor Relations

Facts and Figures

Key Figures of the Share

DE0005110001 / 511 000
Prime Standard
30 November 1998
EUR 14.95 million
4,982,000 (registered shares)
EUR 3

Shareholder Structure

(Approximate distribution based on shareholder statements)
Pierer Industrie AG	25%
Unternehmens Invest AG	25%
BEKO HOLDING GmbH & Co. KG	12%
Qino Capital Partner AG	10%
Management and Supervisory Board (direct and indirect)	4%

Financial Calendar

17 March 2016	Annual General Meeting
12 May 2016	Publication of Half‐Year Financial Report as at 31 March 2016
9 August 2016	Publication of Quarterly Statement as at 30 June 2016
14 December 2016	Publication of Annual and Consolidated Financial Statements 2015/16
14 December 2016	Press Conference on Annual and Consolidated Financial Statements
15 December 2016	Analyst Conference

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All for One Steeb

All for One Steeb AG is number 1 in the German‐speaking SAP market with the largest installed midmarket customer base. The full‐service provider's portfolio comprises end‐to‐end solutions along the whole of the IT value chain. This is why market observers also rank All for One Steeb amongst the leading IT service providers in the extended market for Outsourcing and Cloud Services, HANA, Business Analytics and Performance Management, Human Capital Management, Application Manage‐ ment Services or Communications and Collaboration.

As a one‐stop‐shop and general contractor, All for One Steeb employs more than 1,200 employees and serves over 2,000 clients among machinery and equipment manufacturers, automotive suppliers, consumer goods industry, technical whole‐ salers and project and engineering services providers. Out of the enterprise cloud of its data centers, All for One Steeb provides high‐availability IT operations as full service for all business‐related IT systems, including SAP Solutions, Microsoft Exchange, Sharepoint and Skype for Business. As a founding member of United VARs, the global network of leading SAP partners, All for One Steeb guarantees a comprehensive consulting and service portfolio as well as the best local support in more than 70 countries. All for One Steeb ranks among Germany's best employers (Great Place to Work) and the best IT consultants for the German midmarket (TOP CONSULTANT).

All for One Steeb AG

Gottlieb‐Manz‐Straße 1 70794 Filderstadt‐Bernhausen Germany Tel. +49 (0) 711 788 07‐0 Fax +49 (0) 711 788 07‐699

www.all‐for‐one.com