SimCorp — Earnings Release 2017

Aug 24, 2017

Summary

H1 2017 reported revenue was EUR 148.2m, an increase of 12.9% when compared
with restated H1 2016*, and an increase of 12.8% when measured in local
currencies.

EBIT for H1 2017 was EUR 23.4m compared with EUR 22.6m in restated H1 2016.
Currency fluctuations impacted EBIT positively by EUR 1.2m during first half
year.

Net profit for H1 2017 was EUR 16.9m compared with EUR 16.9m in restated H1
2016.

At 30 June 2017, EUR 268m of the 2017 revenue had been contractually secured,
EUR 33m more than at the same time last year.

SimCorp maintains its expectations for reported revenue growth between 9% and
14% measured in local currency for 2017, including 2% growth from the
acquisition of APL Italiana (previously, before the acquisition, revenue growth
was expected to be between 7% and 12%). As Professional Services are now
expected to constitute a larger part of total revenue, the expectations for
EBIT margin measured in local currencies is expected to be between 24% and 27%
(previously 25% and 28%). The acquisition of APL Italiana is not expected to
have a material impact on the EBIT margin.

Klaus Holse, SimCorp CEO comments: “We continue to see overall healthy growth
in the business, primarily driven by Professional Services and additional
license sales to existing customers. The intake of new SimCorp Dimension
clients in the first six month of the year was lower than in the previous
years, but our pipeline remains strong, which supports our revised guidance for
the year.”

“Following the closing of the books for the first six month, we have welcomed
two new SimCorp Dimension clients: one in Denmark and one in APAC.”

Other highlights of the interim report for the first six months of 2017 are:

-- Total order intake from new licenses and add-on licenses for the first six
months was EUR 16.5m compared with EUR 24.8m in H1 2016. Q2 order intake
was EUR 10.9m compared with EUR 13.9m in Q2 2016. Income recognized from
new subscription licenses and add-on licenses including renewal of
subscriptions was EUR 19.9m, an increase of 4.7% compared with restated H1
2016.
-- The sale of professional services continued to be strong and grew 21.7% to
EUR 56.0m when compared with same period last year.
-- Maintenance income was EUR 68.5m, an increase of 8.3% from H1 2016.
-- Total operating cost for the six months was EUR 124.9m, an increase of
14.8% compared with the same period in 2016. Currency fluctuations reduced
costs by EUR 1.0m (0.9%-points). The cost increase primarily reflects
additional resources to meet the demand for professional services.
-- The lower cash flow from operating activities was EUR 25.6m compared with
EUR 32.3m in H1 2016. The lower cash flow of EUR 6.7m is related to the
change from perpetual license agreement to subscription based agreement and
higher payment of income taxes.
-- SimCorp has from 2017 chosen to make an early adoption of IFRS15 ‘Revenue
from Contracts with Customers’ by recognizing a cumulative effect of EUR
20.9m as an opening balance increase to equity at 1 January 2017. Q2, H1
and full year 2016 results have been restated to IFRS15 for illustrative
purposes and to improve transparency. The early adoption of IFRS15 will
reduce the financial reporting impact of whether customers choose to
acquire SimCorp’s Dimension on a perpetual license basis or on a
subscription basis. In the opinion of the Board of Directors this reporting
approach provides an improved basis for assessing the ongoing performance
of the company.
-- SimCorp will initiate a new share buyback program of EUR 7.5m to be
executed in the period from 24 August 2017 to 31 December 2017.

Investor presentation
SimCorp’s Executive Management Board will present the report at a conference
call today at 2:00 pm (CEST). Please use any of the following phone numbers to
dial in to the conference call:

From Denmark: +45 3848 7513
From USA: +1212 444 0412
From other countries: +44(0)20 3427 1904

The pin code to access the call is 5519392.
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/49a5rknj.

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

Enquiries regarding this announcement should be addressed to:
Investor contacts:
Klaus Holse, Chief Executive Officer, SimCorp A/S (+45 3544 8802, +45 2326 0000)
Søren Strøm, Chief Financial Officer (Interim), SimCorp A/S (+45 3544 6853, +45
2019 3144)
Anders Hjort, Head of Investor Relations, SimCorp A/S (+45 3544 8822, +45 2892
8881)

Media contact:
Anders Crillesen, Group External Communications Manager, (+45 3544 6474, +45
2779 1286)

Company Announcement no. 36/2017